January 16, 2004 -- December results from Multiple Listing Service® sales across the country confirm what the industry has known for a few months now: 2003 was a record-setting year for real estate.
Major markets across the country reported strong growth in sales, fueled by seller’s markets and low interest rates.
Statistics from the Toronto Real Estate Board show that despite the SARS outbreak in Canada’s largest city, 78,898 houses changed hands in 2003, setting a new record for the Board. “This is up six per cent over 2002, and an astounding result given some of the trying events Toronto experienced over the course of the year,” says Cynthia Lai, president of the Toronto Real Estate Board.
Following a succession of record-breaking months, the Greater Vancouver Real Estate Board likewise set a new annual record, tallying 37,816 sales and eclipsing the old mark of 36,415 set in 1989. The total represents an increase of 11.9 per cent over 2002 levels.
“Two recurring factors had a significant influence on the market throughout 2003,” says Bill Binnie, GVREB president. “Month after month, we continued to see historically-low interest rates combine with pent-up demand to fan an already-healthy housing market.”
Edmonton continued its streak of impressive sales, setting a new record for the third time in four years. Total MLS® sales increased 6.4 per cent over 2002 levels to hit a new high of 18,778, beating the record of 18,633 set in 2001. The Edmonton Real Estate Board set a number of other records, including hitting $3 billion in sales for the first time, and lowest number of sales to hit the $1 billion mark at 5,903 units. “This has been a year when supply and demand were in balance, “ said EREB president Dave Schroder. “The well-ordered real estate marketplace in the Edmonton area shows steady growth in all areas without any expectations that this trend will change.”
In Victoria, the sales of single-family homes topped $1 billion for the third year running, riding the crest of a wave of price increases that saw the average sale price jump 17 per cent from 2002 levels to $328,005. Stats from the Victoria Real Estate Board show that REALTORS racked up 4,477 sales in 2003. While that’s off the record mark of 5,920 set in 1989, it’s still a five per cent increase over 2002 levels. “Prices rose due to strong demand, continuing attractive interest rates and fewer properties available for sale,” says VREB president Carol Geurts.
The Ottawa Real Estate Board missed setting a record by a mere one per cent, selling 12,715 units to finish just shy of the 2002 record 12,831 sales. Sales in December were 657 units, down from 885 in November, as area residents were more interested in shopping for stocking stuffers than something to hang them on. “The number of sales for December reinforces the continuing solid market in the Ottawa area,” says OREB president Glenda Bridle. “There are indications the market is becoming more balanced as some properties are taking a little longer to sell and multiple offer situations are fewer.”
Calgary’s MLS® housing market finished 2003 with the second-best year on record for residential sales, ringing in with 24,359 sales, down 2.7 per cent from the 2002 record of 25,054. The Calgary Real Estate Board did establish a new record in residential dollar value, hitting the $5.1 billion mark, surpassing the 2002 record of $4.96 billion. “We are pleased that 2003 saw such a strong marketplace coming off a record sales year in 2002,” says CREB president Don Dickson. “It’s a clear indicator of consumer confidence and the strength of the MLS® system in marketing properties.”