Canada's housing market isn't melting down as you've been led to think

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Canada's housing market isn't melting down as you've been led to think — via financialpost RealEstate HousingMarket

Adding to the confusion is that some metrics suggest prices are falling and others show an increase, though, overall, housing sales are down significantly compared to the peak activity in February, while average prices are down to a lesser extent.Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

Compared to August last year, the HPI was up 8.9 per cent, which seems a lot different from the dismal-sounding newspaper headlines and economist forecasts. What gives? Sales in the GTA in August were down 48.3 per cent from the peak sales observed in March, a much more significant decline than the 34.2 per cent drop from August last year. Similarly, average prices in August, not adjusted for quality or size, were down 18 per cent from the peak prices observed in February.Article contentThe answer depends upon perspective.

The shift from expensive to cheaper homes contributes to the decline in average home prices. But the decline in average prices does not necessarily mean that the price of an average or typical home has also declined by the same rate, because average prices are being computed for housing whose quality and size vary considerably over time.Article content

 

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financialpost The time it takes for a home to sell has grown significantly - month after month, sellers have viewings but no offers compared to 2.5 yrs ago. Real estate agents need to coach sellers on what is realistic with the current market. It may not be melting but cooled down drastically.

financialpost Here's Los Angeles in comparison:

financialpost The media is talking from both sides of their mouth.

financialpost Should “experts say” be added to that headline…to make sure people know it’s BS

financialpost got to keep those realtor ad accounts happy? but go on...

financialpost But interest rates are so ridiculous people can't afford to buy anything!

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Canada's housing market isn't melting down as you've been led to thinkMore nuanced statistics show the magnitude of sale and price movements is in the expected range. Find out more. Yet
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