National home sales in March broke all previous records in Canada, according to the Canadian Real Estate Association (CREA). Sales were up 1.5 per cent compared to February, and 12.2% compared to March 2015. Higher sales were recorded in about 60 per cent of all local markets, CREA said. March’s sales were 14.2% above the ten-year average for the month. In some markets, sales were double what they were one year ago, while a number of markets posted double-digit gains.

Toronto and Vancouver stand out as usual. Both are seeing “soaring demand and a shortage of listings” while other major markets are well balanced and amply supplied, CREA president Paul Iverson commented. Nevertheless, the shortage of listings in Toronto was enough to result in a 1.4% decline nationwide. The sales-to-new-listings ratio rose to 61.7% in March, the highest since October 2009. A reading above 60 indicates sellers’ market conditions. CREA said that a roughly equal number of markets were above as were below the 60 threshold.

New sales records were set for single-family homes priced above $500,000 in both Toronto and Vancouver, suggesting that new regulations concerning the size of down payment required for homes in that price range are having little effect in these markets. CREA’s price index rose 9.1% year over year, with “accelerated” price growth in all home types. The biggest gains were in two-storey detached homes, up 10.8%. Townhouse units rose 8.6%, bungalows 8.1%, and condominiums 7.3%. Using CREA’s index, the average sale price for a home in Vancouver increased 23.2% compared to one year ago; in Toronto, the gain was 11.6%.

The national average price for a home sold through CREA realtors was $508,567, an increase of 15.7%t from the same period last year. However, with Vancouver and Toronto removed from the calculation, the national average falls to $366,950. This would be 10.4% higher than one year ago.

Like Toronto and Vancouver, Calgary also stands out, one of the few markets where home prices declined in March, dropping 3.5% from a year ago. It’s in the commercial real estate sector, however, where the city’s ongoing economic troubles are most evident. The office vacancy rate in downtown Calgary was reportedly 20.2% in the first quarter, twice as high as last year. It is the first time since 1983 that more than one-fifth of available office space was vacant. The leasing price has dropped from $29.23 per square foot last year to $20.97 as of March 2016, a decline of 28%. In comparison, Toronto’s office vacancy rate was 5.3% in the first quarter.

CREA : March Was A Record Month for Home Sales Across Canada by Josephine Nolan | Cando.ca