Record Home Sales In March. Should You Invest In These Real Estate Stocks?

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Summary

  • The average price of a home in Canada increased by 31.6 per cent to C$ 716,828.
  • The housing market continues to soar and more Canadians are willing to sell their homes.
  • Canada's housing market soared to an all-time high in March.

Canada's housing market soared to an all-time high in March as home sales climbed up by 76.2 per cent year-over-year (YoY). According to a report by the Canadian Real Estate Association (CREA), the sales went up by 5.2 per cent between February and March. Last month, home sales across the country were 76,259 units, up from 43,283 from the same comparable period last year. 

As the housing market continues to soar, more Canadians are willing to sell their homes. The CREA in its report mentioned that the market saw 105,001 new listings in March, up 50 per cent YoY.

The average price of a home in the country increased to C$ 716,828, an increase of 31.6 per cent from C$ 544,824 in March 2020.

Real estate stocks are often considered by investors to keep in their portfolios and now might be the right time to invest in them. Here are two Canadian real estate stocks on the Toronto Stock Exchange (TSX) that might be worthy of your time.

Source: Pixabay

Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN)


If you're considering stocks of residential properties, the Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN) or CAPREIT could be an option worth exploring. It manages over 65,000 properties and is worth C$ 9.7 billion. CAPREIT holds a price-to-book (P/B) ratio of 1.048 and offers a 10.48 per cent return on equity (ROE) and 6.29 per cent return on assets (ROA),  as per TMX data.

The shareholders get a monthly dividend of C$ 0.115 with a dividend yield of 2.442 per cent. The stock climbed up by about 25 per cent in a year. In 2021, the stock went up by 15.11 per cent. 

In its full-year financials results (ended December 31, 2020), the company's total operating revenues were C$ 882.6 million, an increase of 13 per cent from C$ 780.7 million in 2019. CAPREIT's financial position remained strong in 2020 and had C$ 121.7 million in cash and cash equivalents.

 

Altus Group Limited (TSX:AIF)


A leading provider of real estate services and data solutions, the Altus Group (TSX:AIF) is becoming increasingly popular among real estate companies after it launched the "Argus Enterprise" system. This is a cloud-enabled system and offers its users a service of commercial property valuation and asset management.

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The company is worth C$ 2.5 billion and holds a P/B ratio of 6.701. It offers 5.77 per cent ROE and 2.92 per cent ROA.

Altus recently started offering quarterly dividends at C$ 0.15 apiece and a dividend yield of 0.968 per cent. The stock soared by 54.3 per cent in a year and about 27 per cent year-to-date (YTD).

In 2020, the company achieved consolidated revenues of C$ 561.2 per cent, an increase of 6.7 per cent from the previous year. In the same comparable period, the consolidated profit was C$ 27 million, up by 13.1 per cent.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.


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