I’m sure you’ve heard the term, “buy low, sell high.” Not a complicated investment strategy but a difficult one to time and pull off. Canadian real estate investors know that the market can switch at any moment. 2017 saw record setting markets stall completely after new legislation was put into place in BC and Ontario.
The million dollar question is: When is the right time to invest in Canadian real estate?
When dissecting the Canadian real estate economy, there are clear winners when it comes to where to invest, but the devil is in the details. The one thing I can say for sure is that 2019 sales have been much stronger than 2018 in every market I’ve researched.
Follow along as I take a look at 6 Canadian markets across Canada and provide some insight as to where you may want to dig a little deeper yourself.
TORONTO, ON
By all accounts, the Toronto Real Estate Board is having a very standard summer. Sales have dipped throughout the summer to 8595 total sales in July after reaching a year high in May with 9989 total sales. Month over month sales were down 3%, active listings were down 8.7% and MOI dropped 5.9% and currently sits at 2.1. Average price also fell 3.1% from June to $807,000. Year over year projections look great as sales were up 24.3% annually and average price up 3.2%. While TREB’s MOI dictates that we are in a sellers market, you may want to consider entering the market if your budget allows. Year over year projections are showing us the Toronto market is incredibly strong and month over month data supports the idea that price can and may continue to rise. Analyse the data yourself and take a look at my TREB Market Update video.
Click here to download Toronto’s July market slides.
OTTAWA, ON
The Ottawa Real Estate Board is once again delivering great news. All year OREB has been in a sellers market; not once have we been above 3.5 months of inventory. Ottawa is performing as predicted in a summer market: sales, active listing and average price are all down month over month. Total sales reached 1842, down 12.5% from June, active listings fell 2.5% and average price dropped 3.4% to $440,000. All of this is to be expected during the summer. Year over year data is much like Toronto’s market: sales are up 14.1% and average price is up 9.1%. I believe Ottawa has tremendous opportunity for investors. The average price of a home makes it easier to enter the market and, as this data shows, it looks like the market will only continue to get stronger from here. All of those statistics and more can be found in my OREB Market Update video here.
Click here to download Ottawa’s July market slides.
CALGARY, AB
Keeping consistent with our Ontario markets, the Calgary Real Estate Board has released very typical summer statistics for July, 2019. As expected in July, sales, active listings and average price have all dropped. Month over month sales dropped 7.5%, active listings 4.8% and average price 2.4%; months of inventory has climbed 2.9% month over month and sits at 4.4. Year over year data is a mixed bag. Sales are up 8.3% from this time last year, however the average price has come down 5.5%. Months of inventory has been falling in the right direction all year and we currently sit in a very healthy, balanced market. I compared this current market to 2008 and you would be surprised by the change that has happened. Take a look at those statistics in my CREB Market Update video.
Click here to download Calgary’s July market slides.
EDMONTON, AB
Our second Alberta market is going against the grain as we actually saw sales increase in July! The Edmonton Real Estate Board delivered great news for the month of July as sales were up 6.1% month over month and MOI dropped 9.1% to 4.7. This is the lowest months of inventory EREB has seen all year and is very close to a three year best. Year over year data confirms that the Edmonton real estate market is strengthening. Sales are up 19.8% while average price has fallen slightly by 1% to $366,000. A clear buyers market at the beginning of the year, EREB is now safely in a balanced market. As Edmonton’s real estate continues to strengthen, expect prices to climb, but only very slightly. For an in-depth look at these statistics, watch my EREB Market Update video here.
Click here to download Edmonton’s July market slides.
VANCOUVER, BC
The Real Estate Board of Greater Vancouver is reporting an increase in sales month over month and is showing some promising data in it’s micro markets. Month over month, REBGV saw sales reach 2557, almost reaching a 2019 high. Sales increased 23.1% compared to June, active listings dropped 4.9% and months of inventory fell 22.7% and now rests at 5.6. Despite this positive news, benchmark price fell 0.4% to $995,000. Year over year data shows us that sales are up 23.5%, however benchmark price is down 8.5%. Here is some very positive news: Vancouver’s high end markets are starting to recover. West and North Vancouver, some of Canada’s most expensive property, is seeing an increase in sales and a drop in MOI. While the average price may not be where it was last year, these are true indicators that the market is rebounding. For a detailed look at these numbers, take a look at my REBGV Market Update now.
Click here to download Vancouver’s July market slides.
FRASER VALLEY, BC
The Fraser Valley Real Estate Board delivered great news as sales climbed 11.6% month over month. Typically sales will drop in the summer, however FVREB reports a strong July with 1458 total sales. Months of inventory fell 12.3% and currently sits at 5.7. Although it was a strong month, average price also fell 5.6% to $711,000. Year over year, total sales are up 13% and average price is down 7.6%. I expect months of inventory will continue to drop and we will see a much stronger fall in 2019 than we did last year. Taking a look back in time, and to keep things in perspective, in 2010 MOI was at 9.9, sales were only 1101 and the average price of a property was just $449,000. For a detailed look at my FVREB report, watch my Market Update here.
Click here to download Fraser Valley’s July market slides.
Remember, it’s a beautiful life, make it count.
Richard