Wednesday, 25 November 2009
As inventories continue to decline in the US, existing home sales jumped 10.1 per cent to a seasonally adjusted rate of 6.1 million units in October, from 5.54 million in September, according to the National Association of Real Estate. The figures easily beat predictions earlier from a Thomson Reuters poll of economists predicting home sales would increase just 1.4 per cent.
"The first-time homebuyer tax credit clearly was a motivating factor and an effective market stimulus to reduce inventories and help stabilize prices," says Mike Onorato, president of the Illinois Association of Realtors, which saw a 24.2 per cent increase in October home sales in that state.
Many real estate agents say the $8,000 tax credit for new homebuyer, which was set to expire on Nov. 30, pulled future buyers into the market earlier. If the tax credit had expired, the fear was the market would drop off in the winter and potentially beyond.
Hoping to stave that off, Congress renewed the credit earlier in November and broadened its reach to current homeowners as well. This latest move will expire on April 30, 2010. Current homeowners who have owned their homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase.
Sales activity is at the highest pace since February 2007, when it hit 6.55 million.
"Many buyers have been rushing to beat the deadline for the first-time buyer tax credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November," says Lawrence Yun, NAR chief economist.
He says it is likely such a spike in October would result in a decline in December and early next year, however, before a possible surge in the spring or early summer.
Yun says an encouraging factor is the historically low interest rates, which were at the third lowest level on record dating back to 1971.
Meanwhile, despite the increase in buyers, prices were still down in the US.
The national median existing-home price for all housing types was $173,100 in October, down 7.1 per cent from October 2008. That could largely be due to distressed properties, which accounted for 30 per cent of sales in October.
Source: mortgagebrokernews.ca
Thursday, November 26, 2009
Tuesday, November 24, 2009
HST
Government listens to Real Estate Board on HST
The BC Government has announced that it will exclude new homes costing up to $525,000 from its proposed 12 per cent Harmonized Sales Tax (HST) scheduled to take effect July 1, 2010.
The government has also increased the rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250.
This represents a 30 per cent increase over the original government proposed home price threshold of $400,000 and maximum rebate of $20,000.
This is good news for the Real Estate Board and proof that its lobbying efforts produce results.
In October, 2009, the Board asked the government to raise the threshold for the HST on new homes as well as the new housing rebate.
Clearly the government listened to the Board and the real estate sector.
“We heard the concerns from consumers and industry about how the HST might affect home buyers, and
this increase will move the threshold to above the average new home price in the province,” said the Hon. Colin Hansen, Minister of Finance.
A similar rebate will also support the construction or substantial renovation of affordable rental housing.
The government has released its proposed Residential Housing New Housing Rebates and Transitional Rules for British Columbia HST, which provides details on new housing rebates including transitional rules for real property. This includes:
Transitional rules: the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010;
Grandparenting: sales of new homes under written agreements of purchase and sale including presales entered into on or before midnight November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010. Any home sold on or after November 19, 2009 is subject to HST transitional rules.
For a copy of the new Transitional Rules, visit: http://www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/HST_Transitional_Rules.html
The BC Government has announced that it will exclude new homes costing up to $525,000 from its proposed 12 per cent Harmonized Sales Tax (HST) scheduled to take effect July 1, 2010.
The government has also increased the rebate of the provincial portion of the HST paid on a new home to a maximum of $26,250.
This represents a 30 per cent increase over the original government proposed home price threshold of $400,000 and maximum rebate of $20,000.
This is good news for the Real Estate Board and proof that its lobbying efforts produce results.
In October, 2009, the Board asked the government to raise the threshold for the HST on new homes as well as the new housing rebate.
Clearly the government listened to the Board and the real estate sector.
“We heard the concerns from consumers and industry about how the HST might affect home buyers, and
this increase will move the threshold to above the average new home price in the province,” said the Hon. Colin Hansen, Minister of Finance.
A similar rebate will also support the construction or substantial renovation of affordable rental housing.
The government has released its proposed Residential Housing New Housing Rebates and Transitional Rules for British Columbia HST, which provides details on new housing rebates including transitional rules for real property. This includes:
Transitional rules: the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010;
Grandparenting: sales of new homes under written agreements of purchase and sale including presales entered into on or before midnight November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010. Any home sold on or after November 19, 2009 is subject to HST transitional rules.
For a copy of the new Transitional Rules, visit: http://www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/HST_Transitional_Rules.html
Friday, November 20, 2009
High sales levels spur rise in home values
This blog is brought to you by LIFESTYLENOW
Strong demand has led to a steady rise in Greater Vancouver home prices compared to last year.
Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.8 per cent to $553,702 from $518,668 in October 2008.
“While home prices have been rising in 2009, they have not eclipsed the peaks reached in early 2008,” Scott Russell, Real Estate Board of Greater Vancouver (REBGV) president said. “We’re coming off several months of unseasonably high sales levels, which has allowed for a gradual increase in home values this year,”
The REBGV reports that residential property sales in Greater Vancouver totalled 3,704 in October 2009, an increase of 4.1 per cent from the 3,559 sales recorded in September 2009, and an increase of 171.6 per cent compared to October 2008 when 1,364 sales were recorded. Looking back two years, last month’s sales increased 22.3 per cent compared to October 2007 when 3,028 sales were recorded.
“High confidence and low mortgage rates are continuing to drive the activity we’re seeing in the housing market today,” Russell said.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,977 in October 2009. This represents a 2.3 per cent increase compared to October 2008 when 4,867 new units were listed, and a 13.4 per cent decline compared to September 2009 when 5,764 properties were listed on the Multiple Listing Service® (MLS®) in Greater Vancouver.
At 12,084, the total number of property listings on the MLS® decreased 4.1 per cent in October compared to last month and declined 37 per cent from this time last year.
Sales of detached properties increased 201.6 per cent to 1,487 from the 493 detached sales recorded during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties increased 7.7 per cent from October 2008 to $749,808.
Sales of apartment properties in October 2009 increased 148.4 per cent to 1,607, compared to 647sales in October 2008. The benchmark price of an apartment property increased 6.3 per cent from October 2008 to $380,975.
Attached property sales in October 2009 are up 172.3 per cent to 610, compared with the 224 sales in October 2008. The benchmark price of an attached unit increased 4.6 per cent between Octobers 2008 and 2009 to $468,798.
-30-
The Real Estate industry is a key economic driver in British Columbia. In 2008, 24,626 homes changed hands in the Board's area generating $1.03 billion in spin-offs. The Real Estate Board of Greater Vancouver is an association representing more than 9,400 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.
For more information please contact:
Craig Munn, Assistant Manager of Communications
Real Estate Board of Greater Vancouver
Phone: (604) 730-3146
cmunn@rebgv.org
Strong demand has led to a steady rise in Greater Vancouver home prices compared to last year.
Over the last 12 months, the MLSLink® Housing Price Index (HPI) benchmark price for all residential properties in Greater Vancouver increased 6.8 per cent to $553,702 from $518,668 in October 2008.
“While home prices have been rising in 2009, they have not eclipsed the peaks reached in early 2008,” Scott Russell, Real Estate Board of Greater Vancouver (REBGV) president said. “We’re coming off several months of unseasonably high sales levels, which has allowed for a gradual increase in home values this year,”
The REBGV reports that residential property sales in Greater Vancouver totalled 3,704 in October 2009, an increase of 4.1 per cent from the 3,559 sales recorded in September 2009, and an increase of 171.6 per cent compared to October 2008 when 1,364 sales were recorded. Looking back two years, last month’s sales increased 22.3 per cent compared to October 2007 when 3,028 sales were recorded.
“High confidence and low mortgage rates are continuing to drive the activity we’re seeing in the housing market today,” Russell said.
New listings for detached, attached and apartment properties in Greater Vancouver totalled 4,977 in October 2009. This represents a 2.3 per cent increase compared to October 2008 when 4,867 new units were listed, and a 13.4 per cent decline compared to September 2009 when 5,764 properties were listed on the Multiple Listing Service® (MLS®) in Greater Vancouver.
At 12,084, the total number of property listings on the MLS® decreased 4.1 per cent in October compared to last month and declined 37 per cent from this time last year.
Sales of detached properties increased 201.6 per cent to 1,487 from the 493 detached sales recorded during the same period in 2008. The benchmark price, as calculated by the MLSLink Housing Price Index®, for detached properties increased 7.7 per cent from October 2008 to $749,808.
Sales of apartment properties in October 2009 increased 148.4 per cent to 1,607, compared to 647sales in October 2008. The benchmark price of an apartment property increased 6.3 per cent from October 2008 to $380,975.
Attached property sales in October 2009 are up 172.3 per cent to 610, compared with the 224 sales in October 2008. The benchmark price of an attached unit increased 4.6 per cent between Octobers 2008 and 2009 to $468,798.
-30-
The Real Estate industry is a key economic driver in British Columbia. In 2008, 24,626 homes changed hands in the Board's area generating $1.03 billion in spin-offs. The Real Estate Board of Greater Vancouver is an association representing more than 9,400 REALTORS®. The Real Estate Board provides a variety of membership services, including the Multiple Listing Service®. For more information on real estate, statistics, and buying or selling a home, contact a local REALTOR® or visit www.rebgv.org.
For more information please contact:
Craig Munn, Assistant Manager of Communications
Real Estate Board of Greater Vancouver
Phone: (604) 730-3146
cmunn@rebgv.org
CAAMP report calls Canadians' debt load "reasonable"
| Tuesday, 17 November 2009
On the heels of CAAMP's latest fall survey report on the residential mortgage market, there is concern that mortgage debt is rising and that Canadians are taking out longer-term mortgages. But despite the number of long-term mortgages almost doubling between 2007 and 2009, CAAMP's chief economist Will Dunning said Canadians' mortgage debt remains reasonable.
"While many Canadians have been negatively affected by the recession and worry about the future, the vast majority are in solid financial situations," said Dunning. "Consumers continue to be thoughtful and strategic about their mortgage decisions, treating home ownership as the bedrock of their personal financial plans, and their decisions have provided stability as we weather these challenging economic times."
The CAAMP survey also found that 80 per cent of respondents have more than 20 per cent equity in their homes and fewer took equity out of their mortgages this fall compared to a year ago. Recent statistics from the Canadian Bankers' Association show that 0.43 per cent of mortgages are in arrears, a number that has stayed fairly stable over the past six months.
Another key finding of the survey was the surprisingly higher number of respondents optimistic about the housing market - 61 per cent said they felt it was a good time to buy a home, nearly double the response from last year.
"Attitudes about whether this is a good time to buy a home have never been higher in the three years that CAAMP has surveyed on that question," the report said. "Only a small minority expects house prices to fall, and more than one half expect stable prices."
Source: mortgagebrokernews.ca
On the heels of CAAMP's latest fall survey report on the residential mortgage market, there is concern that mortgage debt is rising and that Canadians are taking out longer-term mortgages. But despite the number of long-term mortgages almost doubling between 2007 and 2009, CAAMP's chief economist Will Dunning said Canadians' mortgage debt remains reasonable.
"While many Canadians have been negatively affected by the recession and worry about the future, the vast majority are in solid financial situations," said Dunning. "Consumers continue to be thoughtful and strategic about their mortgage decisions, treating home ownership as the bedrock of their personal financial plans, and their decisions have provided stability as we weather these challenging economic times."
The CAAMP survey also found that 80 per cent of respondents have more than 20 per cent equity in their homes and fewer took equity out of their mortgages this fall compared to a year ago. Recent statistics from the Canadian Bankers' Association show that 0.43 per cent of mortgages are in arrears, a number that has stayed fairly stable over the past six months.
Another key finding of the survey was the surprisingly higher number of respondents optimistic about the housing market - 61 per cent said they felt it was a good time to buy a home, nearly double the response from last year.
"Attitudes about whether this is a good time to buy a home have never been higher in the three years that CAAMP has surveyed on that question," the report said. "Only a small minority expects house prices to fall, and more than one half expect stable prices."
Source: mortgagebrokernews.ca
Sunday, November 8, 2009
Housing Activity to Strengthen in 2010
October Housing Starts
OTTAWA, November 9, 2009 — The seasonally adjusted annual rate1 of housing starts reached 157,300 units in October. This is an increase from 149,300 units started in September, according to Canada Mortgage and Housing Corporation (CMHC).
“The improvement in housing starts in October is attributable to improvement in the multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Despite a small decline in single home starts in October, the level of single home starts remains at its second highest level since October 2008.”
The seasonally adjusted annual rate of urban starts increased by 5.2 per cent to 139,900 units in October. Urban multiple starts climbed 13.8 per cent to 72,600 units, while urban single starts declined by 2.7 per cent to 67,300 units in October.
October’s seasonally adjusted annual rate of urban starts increased by 15 per cent in British Columbia, by 14.8 per cent in Ontario, by 6.5 per cent in the Prairies and by 1.2 per cent in the Atlantic. The rate of urban starts decreased by 11.6 per cent in Quebec.
Rural starts were estimated at a seasonally adjusted annual rate of 17,400 units in October2.
As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.
For more information, call 1-800-668-2642.
1 All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) — that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.
2 CMHC estimates the level of rural starts for each of the three months of the quarter, at the beginning of each quarter. During the last month of the quarter, CMHC conducts the survey in rural areas and revises the estimate.
Information on this release:
Charles Sauriol
CMHC
Media Relations
Tel.: 613-748-2799
csauriol@cmhc-schl.gc.ca
For regional starts information contact:
Atlantic provinces:
Alex MacDonald
CMHC
902-426-8964
amacdona@cmhc-schl.gc.ca
Ontario:
Ted Tsiakopoulos
CMHC
416-218-3407
ttsiakop@cmhc-schl.gc.ca
British Columbia:
Valerie Rosenthal
CMHC
604-202-2609
vrosenth@cmhc-schl.gc.ca
Quebec:
Kevin Hughes
CMHC
514-283-4488
khughes@cmhc-schl.gc.ca
Prairie provinces:
Lai Sing Louie
CMHC
403-515-2991
llouie@cmhc-schl.gc.ca
Housing Starts, Actual and SAAR*
Actual SAAR
October
2008 October
2009 September
2009 October
2009
Final Preliminary Final Preliminary
Canada, all areas 19,597 15,828 149,300 157,300
Canada, rural areas 2,208 1,738 16,300 17,400
Canada, urban centres** 17,389 14,090 133,000 139,900
Canada, singles, urban centres 6,411 6,536 69,200 67,300
Canada, multiples, urban centres 10,978 7,554 63,800 72,600
Atlantic region, urban centres 950 788 8,100 8,200
Quebec, urban centres 4,144 3,065 36,100 31,900
Ontario, urban centres 7,403 5,940 48,500 55,700
Prairie region, urban centres 2,516 2,771 26,300 28,000
British Columbia, urban centres 2,376 1,526 14,000 16,100
Source: CMHC
*Seasonally adjusted annual rates
**Urban centres with a population of 10,000 and over.
Detailed data available upon request.
OTTAWA, November 9, 2009 — The seasonally adjusted annual rate1 of housing starts reached 157,300 units in October. This is an increase from 149,300 units started in September, according to Canada Mortgage and Housing Corporation (CMHC).
“The improvement in housing starts in October is attributable to improvement in the multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Despite a small decline in single home starts in October, the level of single home starts remains at its second highest level since October 2008.”
The seasonally adjusted annual rate of urban starts increased by 5.2 per cent to 139,900 units in October. Urban multiple starts climbed 13.8 per cent to 72,600 units, while urban single starts declined by 2.7 per cent to 67,300 units in October.
October’s seasonally adjusted annual rate of urban starts increased by 15 per cent in British Columbia, by 14.8 per cent in Ontario, by 6.5 per cent in the Prairies and by 1.2 per cent in the Atlantic. The rate of urban starts decreased by 11.6 per cent in Quebec.
Rural starts were estimated at a seasonally adjusted annual rate of 17,400 units in October2.
As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.
For more information, call 1-800-668-2642.
1 All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) — that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.
2 CMHC estimates the level of rural starts for each of the three months of the quarter, at the beginning of each quarter. During the last month of the quarter, CMHC conducts the survey in rural areas and revises the estimate.
Information on this release:
Charles Sauriol
CMHC
Media Relations
Tel.: 613-748-2799
csauriol@cmhc-schl.gc.ca
For regional starts information contact:
Atlantic provinces:
Alex MacDonald
CMHC
902-426-8964
amacdona@cmhc-schl.gc.ca
Ontario:
Ted Tsiakopoulos
CMHC
416-218-3407
ttsiakop@cmhc-schl.gc.ca
British Columbia:
Valerie Rosenthal
CMHC
604-202-2609
vrosenth@cmhc-schl.gc.ca
Quebec:
Kevin Hughes
CMHC
514-283-4488
khughes@cmhc-schl.gc.ca
Prairie provinces:
Lai Sing Louie
CMHC
403-515-2991
llouie@cmhc-schl.gc.ca
Housing Starts, Actual and SAAR*
Actual SAAR
October
2008 October
2009 September
2009 October
2009
Final Preliminary Final Preliminary
Canada, all areas 19,597 15,828 149,300 157,300
Canada, rural areas 2,208 1,738 16,300 17,400
Canada, urban centres** 17,389 14,090 133,000 139,900
Canada, singles, urban centres 6,411 6,536 69,200 67,300
Canada, multiples, urban centres 10,978 7,554 63,800 72,600
Atlantic region, urban centres 950 788 8,100 8,200
Quebec, urban centres 4,144 3,065 36,100 31,900
Ontario, urban centres 7,403 5,940 48,500 55,700
Prairie region, urban centres 2,516 2,771 26,300 28,000
British Columbia, urban centres 2,376 1,526 14,000 16,100
Source: CMHC
*Seasonally adjusted annual rates
**Urban centres with a population of 10,000 and over.
Detailed data available upon request.
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