Location, location, location A new Bank of Montreal report highlights the sudden shift in Canada’s regional housing markets, notably the “very weak” nature of those on the Prairies.
Here’s what he found, as of February:
Vancouver’s market is balanced, with average prices on a three-month basis up 3.3 per cent from a year earlier, resales up 13.6 per cent and the average home price 11 times greater than the estimated median family income for 2015. Sales are 14.3 per cent above the 10-year average, again on a three-month basis.
Using the same measurements, Victoria prices are up 0.4 per cent, and prices 14.4 per cent, and the price-family income ratio stands at 5.4 per cent in a balanced market. Sales are 3 per cent below the 10-year average.
Calgary and Edmonton are, of course, taking a hit from the oil rout.
Calgary prices are down 0.7 per cent, and sales are down 27 per cent, with a price-family income ratio at 4 in a very weak market. Sales are almost 18 per cent below the 10-year average.
Regina, Saskatoon and Winnipeg also fall into the very weak category. As do Ottawa, Kingston, Ont., Halifax and the provinces of Prince Edward Island and Newfoundland and Labrador.
Montreal, St. John and Kitchener-Waterloo, Ont., are deemed just weak.
Then there are the “very strong” centres of St. Catharines and Windsor, Ont., and the Hamilton-Burlington as simply strong.
Among those found to be balanced, besides Vancouver and Victoria, are Toronto and the Ontario centres of Sudbury and Thunder Bay.
In Toronto, average prices are up 6.6 per cent and resales 8.6 per cent. Sales vs. the 10-year average are up 5.2 per cent, and the price-family income ratio is at 7.5.