Lower interest rates creating more favourable conditions for buyers reentering the market, TREBB says
Townhomes, a popular choice for first-time buyers, had the largest price decline at 4.0 per cent, with an average price of $904,200. Condo apartments followed with a 3.6 per cent decrease, to an average price of $682,543.
Jason Mercer, TRREB’s chief market analyst, said, “The ability to negotiate on price led to moderate year-over-year price declines, particularly in the more affordable condo apartment and townhouse segments.”
TRREB President Jennifer Pearce noted that, as borrowing costs decrease and lending guidelines adjust, more buyers are entering the market. “With every rate cut, a growing number of GTA households will afford a long-term investment in home ownership,” Pearce said.
Over the last two days, real estate boards in Calgary and Vancouver also released their latest sales reports, highlighting key changes in their respective housing markets.
In Calgary, the market experienced a marked shift in September, with sales dropping to 2,003 — 17 per cent below last year’s record high, yet still 16 per cent above typical September figures. New listings, meanwhile, climbed to 3,687, signalling more balanced conditions.
“We are starting to see a rise in new listings in our market. However, most of the listing growth is occurring in the higher price ranges,” Ann-Marie Lurie, chief economist at the Calgary Real Estate Board (CREB), said in the report.
Lurie added that increased supply coupled with lower lending rates should keep demand strong throughout the fall, easing the intense seller’s market seen earlier this year.
In Vancouver, the real estate market has also faced challenges, with September home sales declining 3.8 per cent year-over-year, for a total of 1,852 transactions.
“Real estate watchers have been monitoring the data for signs of renewed strength in demand in response to recent mortgage rate reductions, but the September figures don’t offer the signal that many are watching for,” said Andrew Lis, director of economics and data analytics at the Greater Vancouver Realtors (GVR), in the report.
GVR added that, despite a 12.8 per cent increase in new listings this year, the market remains on the cusp of a buyer’s market due to lagging sales, with prices trending slightly downward across all segments.