Why Vancouver and Toronto are Nationwide Real Estate Phenomenon’s
Even with the news that the Vancouver real estate market has topped an average of $1 million per home for a detached house, the market was incredibly busy last month. Multiple Listing Service sales increased 32.6 percent from the previous month and were a stunning 53.7 percent higher than they were during the same month last year with a total number of homes sold reaching 4,060. When you look back longer in the data, it is still very promising with last month’s figure signifying a 26.8 percent increase from the 10-year sales average. In addition, there is a very strong competition at this time as there are fewer homes on the market than are normally available at this time of year. That means more bidding wars with multiple offers for the same property making now an optimum time to list a home. It isn’t just detached homes that are selling well at this time. Although those properties were up 53.3 percent over the same month last year, apartments were also up 47.1 percent and attached properties were up 72.3 percent. All it takes at this time is the appropriate selling price to move a home quickly.
Although this phenomenon is limited, it is not just about moving to Vancouver. Ask any of the vancouver moving companies what they think – If anything, this has become a “two-city phenomenon” centered in both Vancouver and Toronto. These are the only Canadian cities with home prices rising above the average. Other areas are seeing prices below average with a “hard” landing in Alberta and Saskatchewan as the prices drop well below the norm. The price increase in Toronto and Vancouver have been driven by “new baby boomers” who are entering their mid-30s and are buying their first single-family homes as opposed to condominiums. Since condos have been the focus for years from the developmental standpoint, this leaves a smaller supply for the relatively larger demand, driving up prices accordingly.
As Vancouver has had a record-breaking month, Toronto is preparing for a similar April with new listings expected to surge this month. Many families are going to be listing their properties now so that the deals will be closed and they can then move into their new homes once the school year ends and the summer begins. Those homeowners that list their properties in January and February do not get as many viewings as those who list their homes in March and April.