State of the Real Estate Market: September 2019
Curious to know how the real estate market is doing in Ontario, Manitoba, and Alberta? We thought so.
Our monthly update will help you better understand the current state of the market so you can make informed decisions with your real estate purchases.
The Toronto Real Estate Board reports1 the GTA experiencing strong sales growth compared to September 2018 with a 22% increase. The number of new listings is down, which has been a concern for the Toronto housing market throughout much of 2019. When the number of sales outpace the number of active listings, a seller’s market is created where home prices can climb due to high demand and low supply. This is supported by September 2019 seeing the highest annual rate of price growth, up 5.2% from last year. The average selling price for a home in Toronto is $843,115.
The Ottawa real estate market saw strong sales in September with a 11.8% increase compared to September 20182. Due to limited inventory, buyers must be prepared to move quickly if they have their eyes on a specific home. Condominium sales were the most prevalent in Ottawa with 56% of all units sold falling in the condominium class in a price range of $225,000-$349,999. Prior to the federal election, OREB President Dwight Delahunt commented, “September to November typically tend to be busy listing and sales months; however, there is a federal election coming up, which normally brings a slowdown in the market. We haven’t seen that transpire this year, which suggests that consumers are highly confident in our local economy and the Ottawa real estate market.”
Sales for September 2019 in the Hamilton-Burlington region are down from July and August but are up 3.2% compared to September 20183. RAHB President Bob Van de Vrande reports, “With an increase in the number of homes currently available, and a more relaxed pace in the market, this may be an ideal opportunity for buyers to purchase their dream home.” The average home price was $609,562, an increase of 8.5% from last September. The Hamilton market encompasses a variety of diverse communities compared to other regions, so market results vary from community to community. This is one of the reasons working with a REALTOR® who is an expert in the local area is important.
The Kitchener-Waterloo region saw their second-best September on record for home sales4. The average and median prices of residential properties were at an all-time high with the average sale price increasing 10.2% compared to September 2018. KWAR President Brian Santos comments, “Tight supply is the new normal. We’ve been tracking under two months of supply for over three years now, and this has put steady upward pressure on prices.” The consistent increase of prices makes it harder for first-time buyers to enter the real estate market with the average home price of $541,850.
The Niagara Region saw little year-over-year sales growth with a 0.32% increase from September 20185. Deanna Gunter, President of the Niagara Association of REALTORS®, comments, “It remains a challenging market for buyers. Slowing sales may simply reflect the combination of limited supply and rising prices.” Prices have increased 8.1% compared to last September, despite similar sales figures. The average days on market in the Niagara Region is 44 days with an average home price of $422,900.
The London and St Thomas Association of REALTORS® reported the second-best September for home sales on record6. Year-over-year sales were up 11.8%, while inventory remains low at well below the 10-year average. Compared to five years ago, inventory is down nearly 50%. Due to lower supply, home prices have increased. The average home price was $412,208, a year-over-year increase of 6.8%.
Windsor-Essex County experienced sales growth of 7.8% from September 20187. The average sales price is $329,238, up 9.1% compared to the same time last year. Average sales prices are the lowest they have been since March 2019. Looking at year-to-date sales, the largest price range where homes were sold was in the $300,000-$359,999 range, accounting for 17% of all residential units sold in 2019. September home sales mimic the year-to-date figures with 18% of sales having occurred in that price range.
The Winnipeg real estate market is hot right now having reported its strongest third quarter of market activity on record8. Year-over-year sales are at a strong 16% and were only 4 home sales shy of the best September on record from 2016. Despite impressive sales, it is a buyer’s market right now with one in every five listings being sold in September. The increased supply has caused housing prices to remain consistent with last year’s sales prices. Compared to many other major cities in Canada, Winnipeg is affordable with 50% of single-family homes and 76% of condominiums selling in September for under $300,000.
Although the Alberta housing market is not exhibiting peak numbers, larger regions are slowly becoming more stable in some Albertan regions9. Overall there is an excess supply of home listings without the demand to match it. In Calgary and Edmonton, sales activity improved compared to September 2018 figures. The oversupply issue is easing in these two cities which indicates a slow move towards a more balanced market.
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1 TRREB September 2019 Market Update
2 OREB September 2019 Market Update
3 RAHB September 2019 Market Update
4 KWAR September 2019 Market Update
5 Niagara Association of REALTORS® September Market Update
6 LSTAR September 2019 Market Update
7 WECAR September 2019 Market Update
8 Winnipeg REALTORS® September 2019 Market Update
9 AREA September 2019 Market Update