Home sales fall in Toronto, Vancouver because not enough property on market: CREA
Posted by Steve Harmer on
The biggest problem in Canada’s hottest housing markets today seems to be finding something available to buy.
The Canadian Real Estate Association offered up the explanation of a shortage of listings in Vancouver and Toronto for a 2.1 per cent seasonally adjusted decline in existing home sales from August to September.
“Although national sales activity was not as strong in September as it was earlier this year, a lack of supply in some parts of the country is likely keeping a lid on transactions,” said Gregory Klump, chief economist with CREA. “The greater Toronto area and Greater Vancouver made sizeable contributions to the monthly decline in national sales activity. They also rank among the tightest urban housing markets in the country due to a…
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Buyers pay 1 per cent on the first $200,000, and then 2 per cent on the rest of the value.
For example, Manitoba, Saskatchewan and Alberta had the strongest average population growth of all provinces during this period, for the first time since 1971.
Private buyers – both local and foreign – and, to a lesser extent, institutional investors and REITs, were increasingly willing to accept record pricing and highly compressed capitalization rates as the cost of entry to British Columbia’s coveted multi-family real estate market. 
Usually, market value is determined by what a buyer is willing to pay for a home, and what the seller is willing to accept. The recent agreed upon sale price of a home is usually the best determinant of a property's market value. However, there are circumstances where the price paid for a home is not the true market value. For example, there may be a special relationship between the parties which resulted in a much lower value being paid. Also, a buyer may have been willing to pay a premium for a property for some reason, and so it sold for much more than it would otherwise be worth.
