Canada’s real estate market is returning to normal with a year-over-year average price increase of less than five per cent, according to a Royal LePage survey released Tuesday October 19.
The survey suggests house price appreciation slowed in the third quarter to a rate historically typical of balanced property markets.
“Most Canadian housing markets cooled in the third quarter,” Phil Soper, president and CEO at Royal LePage Real Estate Services, said in the report. “In fact, the year is unfolding much as we predicted with the unusually active first half of 2010 giving way to slower markets in the later part of the year.”
Soper said the third quarter was slightly stronger than anticipated, helped by the low rates in a competitive mortgage financing market and new demand fuelled by improved affordability in many regions.
“House price growth now sits just below the long-term annual average of approximately five per cent,” added Soper. “But once this is adjusted for inflation, which is very low and expected to continue to be that way for some time, appreciation is right on track. Canadian homeowners will be pleased.”
St. John’s, Winnipeg, Montreal and Vancouver posted price increases above the national average, with St. John’s rising between 12.3 per cent and 14 per cent depending on housing type, while Winnipeg had increases of between eight and 11.7 per cent year-over-year. Prices in both cities were fuelled by a population influx.
Source: mortgagebrokernews.ca
Friday, October 22, 2010
Tuesday, August 31, 2010
Canadian housing bubble still looms
Tuesday, 31 August 2010
Though home sales are slowing, prices in six of Canada's largest housing markets are in bubble territory.
Home prices are sitting at 4.7 to 11.3 times Canadians' annual income - much higher than historical comfort levels of between three and four times income, according to a report by the Canadian Centre for Policy Alternatives. The report defines a bubble occurring when housing prices increase more rapidly than inflation, household incomes and economic growth.
"To see all of the major markets outside of that comfort zone is very unique and concerning," said David Macdonald, a research associate who wrote the report called "Canada's Housing Bubble: An Accident Waiting To Happen."
Sales have fallen by 25 per cent since reaching its peak at the begnning of the year. But canadian home prices were up 13.6 per cent in June from a year ago in Canada's major cities.
"The concern today is all six major markets, not just Vancouver and Toronto, are out of that comfort zone," said Macdonald, including Calgary, Edmonton, Ottawa and Montreal. "All six major markets now have an average price of over $300,000."
Source:
mortgagebrokernews.ca
Though home sales are slowing, prices in six of Canada's largest housing markets are in bubble territory.
Home prices are sitting at 4.7 to 11.3 times Canadians' annual income - much higher than historical comfort levels of between three and four times income, according to a report by the Canadian Centre for Policy Alternatives. The report defines a bubble occurring when housing prices increase more rapidly than inflation, household incomes and economic growth.
"To see all of the major markets outside of that comfort zone is very unique and concerning," said David Macdonald, a research associate who wrote the report called "Canada's Housing Bubble: An Accident Waiting To Happen."
Sales have fallen by 25 per cent since reaching its peak at the begnning of the year. But canadian home prices were up 13.6 per cent in June from a year ago in Canada's major cities.
"The concern today is all six major markets, not just Vancouver and Toronto, are out of that comfort zone," said Macdonald, including Calgary, Edmonton, Ottawa and Montreal. "All six major markets now have an average price of over $300,000."
Source:
mortgagebrokernews.ca
Sunday, August 22, 2010
REAL ESTATE: BUY IT AND KEEP IT
Retirement Case Study: skewed in favor of…Are you looking at skewed numbers when making critical financial decisions? A retirement case study was forwarded to me by an associate who is an independent Certified Financial Planner (CFP). She wanted my input on an investment plan that seemed a little one-sided and sure enough, there was a fundamental flaw in that case study. Its focus was too narrow.
The company's article describes a semi-retired couple who want to travel and maintain their lifestyle. Three options are presented. The first option is to downsize and spend less. The second option is to withdraw money from their registered retirement savings plan. The third option is the investment portfolio offered by this particular company which is presented as the most lucrative of the three options. The case study is real. The analysis of this couple's financial options was dismally short-sighted.
The unfortunate fact is that most financial advisors do not present real estate investments as an o ption to their clients because there is no commission attached. They derive their income and livelihood by selling their company's products or a range of bank products. Independent CFP's charge a fee and provide non-biased advice. However, it all depends on how savvy the CFP is. Rich Dad Poor Dad author Robert T. Kiyosaki cautions his readers about the type of advisors you have on your team. If they're not making more money than you are, then chances are they will manage your finances to the level of their current financial success, not to yours.
The first option to downsize and spend less puts you into scarcity mode. A universal principle kicks in: what you focus on expands. So if you are thinking of spending less, you’re going to end up with less and less like a self-fulfilling prophecy. You actually want to do the opposite. Instead of spending less, make more money. Rightsize, Upsize and go for more. This puts you into abundance mode and opportunities will come into your life. The second option to withdraw money from an RRSP is a no-win plan. When you think about it, the government created RRSP’s as a form of forced savings.
To entice people to make regular contributions, the incentive is tax deferral until you withdraw this money in the future. The premise of planning for the future is sound. I disagree with the method. A savings plan is a type of depletion strategy. You're saving up in order to spend in the future. Let's face it. Most people's money will run out during their retirement years. We are retiring earlier and living longer. My grandmother lived for 98 years. That’s an additional 33 years after retirement. Do the math on your projected life expectancy. The third option offered by the investment company appeared like it was the only viable option. Although the comparison was made using home equity as the source of investment funds, not once did they mention real estate investments as a viable investment option. Using a side-by-side comparison,
I took the same $100,000 of home equity and compared their projected return versus my projected real estate investment return. And guess what? There's really no comparison. Real estate is the undisputed winner. Their portfolio requires a 100% cash investment leveraging only 1 profit center: the fund. My comparison requires a 10% and 20% cash investment leveraging 7 profit centers: purchase of 3 single family dwellings.Their portfolio projects $90,000 in cash flow and an investment portfolio valued at $119,471 after 15 years. My comparison projects $81,000 in cash flow and an investment portfolio valued at $708,336 after 15 years. And even the real estate comparison is skewed as increases in rent and principle paydown of the mortgage were not factored in over the 15 years in order to keep the math simple. In actuality, there’s more cash flow and more equity through the real estate portfolio.
Is it okay to have more money than you expected? I thought so. Retirement isn't about saving up to spend less. That model is a dinosaur; extinct. Retirement is about creating passive income that replaces your existing income. It doesn't matter what you do, how you do it or when you do it. You can choose to live the lifestyle of your choice on your terms. If you would like more hands-on learning, you are invited to attend a free upcoming seminar.
Check website at www.OnTheBeachEducation.com for event details.
The company's article describes a semi-retired couple who want to travel and maintain their lifestyle. Three options are presented. The first option is to downsize and spend less. The second option is to withdraw money from their registered retirement savings plan. The third option is the investment portfolio offered by this particular company which is presented as the most lucrative of the three options. The case study is real. The analysis of this couple's financial options was dismally short-sighted.
The unfortunate fact is that most financial advisors do not present real estate investments as an o ption to their clients because there is no commission attached. They derive their income and livelihood by selling their company's products or a range of bank products. Independent CFP's charge a fee and provide non-biased advice. However, it all depends on how savvy the CFP is. Rich Dad Poor Dad author Robert T. Kiyosaki cautions his readers about the type of advisors you have on your team. If they're not making more money than you are, then chances are they will manage your finances to the level of their current financial success, not to yours.
The first option to downsize and spend less puts you into scarcity mode. A universal principle kicks in: what you focus on expands. So if you are thinking of spending less, you’re going to end up with less and less like a self-fulfilling prophecy. You actually want to do the opposite. Instead of spending less, make more money. Rightsize, Upsize and go for more. This puts you into abundance mode and opportunities will come into your life. The second option to withdraw money from an RRSP is a no-win plan. When you think about it, the government created RRSP’s as a form of forced savings.
To entice people to make regular contributions, the incentive is tax deferral until you withdraw this money in the future. The premise of planning for the future is sound. I disagree with the method. A savings plan is a type of depletion strategy. You're saving up in order to spend in the future. Let's face it. Most people's money will run out during their retirement years. We are retiring earlier and living longer. My grandmother lived for 98 years. That’s an additional 33 years after retirement. Do the math on your projected life expectancy. The third option offered by the investment company appeared like it was the only viable option. Although the comparison was made using home equity as the source of investment funds, not once did they mention real estate investments as a viable investment option. Using a side-by-side comparison,
I took the same $100,000 of home equity and compared their projected return versus my projected real estate investment return. And guess what? There's really no comparison. Real estate is the undisputed winner. Their portfolio requires a 100% cash investment leveraging only 1 profit center: the fund. My comparison requires a 10% and 20% cash investment leveraging 7 profit centers: purchase of 3 single family dwellings.Their portfolio projects $90,000 in cash flow and an investment portfolio valued at $119,471 after 15 years. My comparison projects $81,000 in cash flow and an investment portfolio valued at $708,336 after 15 years. And even the real estate comparison is skewed as increases in rent and principle paydown of the mortgage were not factored in over the 15 years in order to keep the math simple. In actuality, there’s more cash flow and more equity through the real estate portfolio.
Is it okay to have more money than you expected? I thought so. Retirement isn't about saving up to spend less. That model is a dinosaur; extinct. Retirement is about creating passive income that replaces your existing income. It doesn't matter what you do, how you do it or when you do it. You can choose to live the lifestyle of your choice on your terms. If you would like more hands-on learning, you are invited to attend a free upcoming seminar.
Check website at www.OnTheBeachEducation.com for event details.
Thursday, August 12, 2010
BC Home Sales Expected to rise in 2011
BCREA Housing Forecast Update - Third Quarter 2010
BC housing markets are returning to typical post-recession demand patterns. The dramatic rebound in consumer demand during 2009 and subsequent decline during the first two quarters of 2010 has set the stage for a gradual increase in home sales during the fall and through 2011. Residential unit sales through the Multiple Listing Service® (MLS®) in BC are forecast to decrease 7 per cent to 79,500 units in 2010, before climbing 5 per cent to 83,400 units in 2011.
A slower than expected normalization of interest rates will temper erosion of affordability as economic output posts more moderate growth for the balance of this year and through 2011. Stronger corporate profits are triggering employment growth and a reduction in the unemployment rate is now underway.
A larger inventory of homes for sale has created the most favourable supply conditions for home buyers in more than a year. While tighter mortgage qualifications for low equity home buyers has negatively impacted demand, more borrowers are now channeling into 5-year fixed mortgages where discounted rates increase purchasing power.
The average MLS® residential price is forecast to increase 6 per cent to $492,800 this year and edge down 1 per cent to $489,500 in 2011. Some softness in home prices is expected through the summer months in most regional markets. However, inventory levels peaked in May and will likely edge lower in the coming months, leading to more balanced conditions in the fall with a commensurate firming of home prices.
“The volatility in consumer demand characteristic of the past 24 months is expected to give way to more gradual improvement through 2011,” said Cameron Muir, BCREA Chief Economist. “Housing demand has fallen back to earth from its break-neck pace at the end of 2009 and is expected to more closely match overall economic performance over the next 18 months.
“A larger inventory of homes for sale has created the most favourable conditions for home buyers in more than a year,” added Muir. “However, the buyers’ market is expected to be short-lived as total active listings peaked in May and are beginning to wane, with more balanced conditions set to emerge in the fall.”
After a sharp pull back in new home construction last year, home builders are gradually increasing production to meet demand. BC led the country in population growth over the last three quarters and with the inventory of complete and unoccupied units expected to decline, builders are adjusting production to match supply with household formation.
Source: Source: British Columbia Real Estate Association
BC housing markets are returning to typical post-recession demand patterns. The dramatic rebound in consumer demand during 2009 and subsequent decline during the first two quarters of 2010 has set the stage for a gradual increase in home sales during the fall and through 2011. Residential unit sales through the Multiple Listing Service® (MLS®) in BC are forecast to decrease 7 per cent to 79,500 units in 2010, before climbing 5 per cent to 83,400 units in 2011.
A slower than expected normalization of interest rates will temper erosion of affordability as economic output posts more moderate growth for the balance of this year and through 2011. Stronger corporate profits are triggering employment growth and a reduction in the unemployment rate is now underway.
A larger inventory of homes for sale has created the most favourable supply conditions for home buyers in more than a year. While tighter mortgage qualifications for low equity home buyers has negatively impacted demand, more borrowers are now channeling into 5-year fixed mortgages where discounted rates increase purchasing power.
The average MLS® residential price is forecast to increase 6 per cent to $492,800 this year and edge down 1 per cent to $489,500 in 2011. Some softness in home prices is expected through the summer months in most regional markets. However, inventory levels peaked in May and will likely edge lower in the coming months, leading to more balanced conditions in the fall with a commensurate firming of home prices.
“The volatility in consumer demand characteristic of the past 24 months is expected to give way to more gradual improvement through 2011,” said Cameron Muir, BCREA Chief Economist. “Housing demand has fallen back to earth from its break-neck pace at the end of 2009 and is expected to more closely match overall economic performance over the next 18 months.
“A larger inventory of homes for sale has created the most favourable conditions for home buyers in more than a year,” added Muir. “However, the buyers’ market is expected to be short-lived as total active listings peaked in May and are beginning to wane, with more balanced conditions set to emerge in the fall.”
After a sharp pull back in new home construction last year, home builders are gradually increasing production to meet demand. BC led the country in population growth over the last three quarters and with the inventory of complete and unoccupied units expected to decline, builders are adjusting production to match supply with household formation.
Source: Source: British Columbia Real Estate Association
Old Electronic WANTED
E-Recycling event returns September 16
The last two years, your Board has partnered with the Electronics Recycling Association (ERA) to collect unwanted or unused electronic equipment for environmentally conscious recycling. Combining 2008’s weeklong event and last year’s one-day event, our members and staff have recycled just over 2,400 items through the ERA.
We are happy to announce that we will once again be teaming up with the ERA to host another electronics recycling event for members here at the Board. The event will take place on Thursday, September 16 from 9 a.m. to 3:00 p.m. at the shipping dock in the alley behind our building at 2433 Spruce Street in Vancouver. Hot dogs and pop will be on sale in the afternoon with the profits going to a REALTORS Care® charity.
“This event allows our members the opportunity to dispose of unwanted electronics not only in an environmentally responsible manner, but a socially responsible manner as well,” says Jake Moldowan, REBGV president.
The ERA is a non-profit organization that donates the used electronic equipment they collect to local schools, charities, libraries, seniors’ homes, and other community-based organizations at no charge. They inspect all computers and electronics collected, reuse and refurbish first, and only then will they send the unsalvageable equipment to government certified processors for dismantling and recycling.
We must receive all donations by 3:00 p.m. so that the people from ERA will have enough time to load the collected items into the truck. For more information, contact Jun Bernadas at 604.730.3017.
REALTORS® Electronics Recycling EventThursday, September 16, 20109:00 a.m. to 3:00 p.m. Real Estate Board of Greater Vancouver2433 Spruce St., Vancouver
Items that CAN be donated:
Computers, monitors, PC parts;
Scanners, servers, hubs, printers, fax machines;
Peripherals, barcode equipment, UPS;
Network equipment;
Server racks, switches;
Wires and cables;
Plotters, projection systems;
Telecommunication equipment;
VCRs, DVDs, cameras;
Audio/stereo equipment;
Mobile phones;
Satellite/wireless equipment
Items that CANNOT be donated:
Appliances;
TVs
The last two years, your Board has partnered with the Electronics Recycling Association (ERA) to collect unwanted or unused electronic equipment for environmentally conscious recycling. Combining 2008’s weeklong event and last year’s one-day event, our members and staff have recycled just over 2,400 items through the ERA.
We are happy to announce that we will once again be teaming up with the ERA to host another electronics recycling event for members here at the Board. The event will take place on Thursday, September 16 from 9 a.m. to 3:00 p.m. at the shipping dock in the alley behind our building at 2433 Spruce Street in Vancouver. Hot dogs and pop will be on sale in the afternoon with the profits going to a REALTORS Care® charity.
“This event allows our members the opportunity to dispose of unwanted electronics not only in an environmentally responsible manner, but a socially responsible manner as well,” says Jake Moldowan, REBGV president.
The ERA is a non-profit organization that donates the used electronic equipment they collect to local schools, charities, libraries, seniors’ homes, and other community-based organizations at no charge. They inspect all computers and electronics collected, reuse and refurbish first, and only then will they send the unsalvageable equipment to government certified processors for dismantling and recycling.
We must receive all donations by 3:00 p.m. so that the people from ERA will have enough time to load the collected items into the truck. For more information, contact Jun Bernadas at 604.730.3017.
REALTORS® Electronics Recycling EventThursday, September 16, 20109:00 a.m. to 3:00 p.m. Real Estate Board of Greater Vancouver2433 Spruce St., Vancouver
Items that CAN be donated:
Computers, monitors, PC parts;
Scanners, servers, hubs, printers, fax machines;
Peripherals, barcode equipment, UPS;
Network equipment;
Server racks, switches;
Wires and cables;
Plotters, projection systems;
Telecommunication equipment;
VCRs, DVDs, cameras;
Audio/stereo equipment;
Mobile phones;
Satellite/wireless equipment
Items that CANNOT be donated:
Appliances;
TVs
Wednesday, July 21, 2010
"Ridding Yourself of FolksWho Suck Up Your Time and Energy"
by Bernice Ross, Ph.D., MCC and Byron Van Arsdale, MCCOwners, Teleclass4U.com, LLC and RealEstateCoach.com
Copyright © 2003RealEstateCoach.com and Teleclass4U.comAll rights in all media reserved.
Feeling "drained" by how much you have to do? If so, here's a simple approach to increasing your energy by ridding yourself of what we call "Energy Vampires."
Begin by making a list of at least 25 things that are "bugging you." It can be a person, a thing, or something that someone does. It makes no difference if it's something as small as a missing button on a shirt or as large as a major life challenge.
Next categorize the items on your list into one of three major categories:
Work, including colleagues, hours, environment, equipment, compensation, and management.
Other people: including our spouse, family, or friends.
Personal, including our appearance, home environment, car, self-criticism, and personal behaviors.
These "energy vampires" are the most expensive, yet one of the most easily fixable problems in life. Everything that happens to use either adds or detracts from our energy. The problem for most of us is that we are often so busy, we seldom take the time to evaluate what adds value to our lives versus what drains us of our time and resources. Unfortunately, what we leave "hanging around", drains us time and time again. For each "energy vampire" you zap, you create new time and energy to achieve your goals. Just eliminating the easiest one on your list often releases a surprising amount of energy.
To reduce the number of "energy vampires" in your life, try the following strategies:
Begin by dealing with "energy vampire" each day. Start with small simple items you can easily complete. For example, instead of trying to clean out the entire garage, plan on packing one box every Thursday for the next 4 weeks. (If you want to pack more, that's OK, but don't get worn down by the magnitude of the task. The goal is to make the task small enough that it is easy to complete in just a few minutes.)
Stop spending time with people who drain you of energy without ever giving anything back. To get them out of your life, establish clear-cut boundaries. For example, you may "set a boundary" not to allow anyone to yell at you. When someone does yell at you, ask the person to engage in the exact opposite behavior, i.e. instead of saying, "Will you stop yelling at me?" As them to "please speak softly to me since I can't hear what you're saying when you raise your voice." If the person continues to yell, inform them that you will leave if they will not speak softly to you. If they continue, leave, by hanging up the phone or walking away from the situation.
Another strategy to eliminate people who are "energy vampires" is to clearly tell them you have only 2 or 3 minutes to talk and then you have to leave. Their goal is to take your time and energy without giving anything back. When they can't get their need for attention through you, they will go elsewhere. Alternatively, when you see the energy vampire coming your way or if they call you on the phone, ask the "energy vampire" for a contribution to your favorite charity or to help you complete some unpleasant task like helping you clean your garage.
The best strategy to avoid "energy vampires" is to handle the task or issue the moment it occurs. When you pop a button, sew it back on. When someone starts to yell or to waste your time, walk away. "Energy vampires" are a lot like the trash—the more you let them build up, the more they stink and the harder they are to clean up!
by Bernice Ross, Ph.D., MCC and Byron Van Arsdale, MCCOwners, Teleclass4U.com, LLC and RealEstateCoach.com
Copyright © 2003RealEstateCoach.com and Teleclass4U.comAll rights in all media reserved.
Feeling "drained" by how much you have to do? If so, here's a simple approach to increasing your energy by ridding yourself of what we call "Energy Vampires."
Begin by making a list of at least 25 things that are "bugging you." It can be a person, a thing, or something that someone does. It makes no difference if it's something as small as a missing button on a shirt or as large as a major life challenge.
Next categorize the items on your list into one of three major categories:
Work, including colleagues, hours, environment, equipment, compensation, and management.
Other people: including our spouse, family, or friends.
Personal, including our appearance, home environment, car, self-criticism, and personal behaviors.
These "energy vampires" are the most expensive, yet one of the most easily fixable problems in life. Everything that happens to use either adds or detracts from our energy. The problem for most of us is that we are often so busy, we seldom take the time to evaluate what adds value to our lives versus what drains us of our time and resources. Unfortunately, what we leave "hanging around", drains us time and time again. For each "energy vampire" you zap, you create new time and energy to achieve your goals. Just eliminating the easiest one on your list often releases a surprising amount of energy.
To reduce the number of "energy vampires" in your life, try the following strategies:
Begin by dealing with "energy vampire" each day. Start with small simple items you can easily complete. For example, instead of trying to clean out the entire garage, plan on packing one box every Thursday for the next 4 weeks. (If you want to pack more, that's OK, but don't get worn down by the magnitude of the task. The goal is to make the task small enough that it is easy to complete in just a few minutes.)
Stop spending time with people who drain you of energy without ever giving anything back. To get them out of your life, establish clear-cut boundaries. For example, you may "set a boundary" not to allow anyone to yell at you. When someone does yell at you, ask the person to engage in the exact opposite behavior, i.e. instead of saying, "Will you stop yelling at me?" As them to "please speak softly to me since I can't hear what you're saying when you raise your voice." If the person continues to yell, inform them that you will leave if they will not speak softly to you. If they continue, leave, by hanging up the phone or walking away from the situation.
Another strategy to eliminate people who are "energy vampires" is to clearly tell them you have only 2 or 3 minutes to talk and then you have to leave. Their goal is to take your time and energy without giving anything back. When they can't get their need for attention through you, they will go elsewhere. Alternatively, when you see the energy vampire coming your way or if they call you on the phone, ask the "energy vampire" for a contribution to your favorite charity or to help you complete some unpleasant task like helping you clean your garage.
The best strategy to avoid "energy vampires" is to handle the task or issue the moment it occurs. When you pop a button, sew it back on. When someone starts to yell or to waste your time, walk away. "Energy vampires" are a lot like the trash—the more you let them build up, the more they stink and the harder they are to clean up!
Thursday, July 8, 2010
Royal LePage Expects Lower Market
The residential sector will slow down in the second half of 2010 thanks to "front-loaded" sales in the first half of the year.
The Royal LePage House Price Survey and Market Survey Forecast, released today, predicts that, by the end of 2010, home appreciation will average almost seven per cent year-over-year and home sales will increase by just over one per cent.
"We have seen an unusual pattern of activity in the housing market over the past 12 months, with the market experiencing a surge of activity and price increases that peaked in the fall of 2009 rather than spring," said Royal LePage president Phil Soper. "An expected increase in the supply of homes on the market will now bring stabilization in prices and, in some cities, we will see both prices and unit sales decline towards the end of the year. This should not be interpreted as a severe correction but rather a natural reaction to the market having peaked quite early this year."
According to Soper, home prices will stay consistent or decline negligibly in most of Canada with the exception of energy-producing markets like Alberta.
Home prices in Vancouver were up by an average of 17.8 per cent year-over-year while, in Toronto, prices rose by an average of 9.5 per cent. St. John's, NL also posted sharp increases with prices up an average of 19 per cent.
In the second quarter, the average price of a detached bungalow reached $331, 868, up 9 per cent from last year. Standard two-storey homes rose 8.7 per cent to $367, 835. Standard condominiums averaged just over $230,000, up over 7 per cent from 2009.
The Royal LePage House Price Survey and Market Survey Forecast, released today, predicts that, by the end of 2010, home appreciation will average almost seven per cent year-over-year and home sales will increase by just over one per cent.
"We have seen an unusual pattern of activity in the housing market over the past 12 months, with the market experiencing a surge of activity and price increases that peaked in the fall of 2009 rather than spring," said Royal LePage president Phil Soper. "An expected increase in the supply of homes on the market will now bring stabilization in prices and, in some cities, we will see both prices and unit sales decline towards the end of the year. This should not be interpreted as a severe correction but rather a natural reaction to the market having peaked quite early this year."
According to Soper, home prices will stay consistent or decline negligibly in most of Canada with the exception of energy-producing markets like Alberta.
Home prices in Vancouver were up by an average of 17.8 per cent year-over-year while, in Toronto, prices rose by an average of 9.5 per cent. St. John's, NL also posted sharp increases with prices up an average of 19 per cent.
In the second quarter, the average price of a detached bungalow reached $331, 868, up 9 per cent from last year. Standard two-storey homes rose 8.7 per cent to $367, 835. Standard condominiums averaged just over $230,000, up over 7 per cent from 2009.
Wednesday, June 30, 2010
Monday, May 31, 2010
Canadians Pursuing Recreational Property for Lifestyle
Canadians Pursuing Recreational Property for Lifestyle, despite Tax Concerns and Stricter Mortgage Rules
National opinion poll shows condominiums increasingly popular choice for a second home
TORONTO, May 31, 2010 –
Almost half of Canadians considering buying a recreational property will do so to improve their lifestyle, despite concerns about increasing taxes, rising interest rates and new regulations that require higher down payments on second homes, according to a nationwide survey of Canadian attitudes towards recreational property ownership conducted by Angus Reid and commissioned by Royal LePage Real Estate Services.
When buyers were asked why they plan to purchase recreational property, lifestyle was the number one reason given, at 47 per cent. Only one in four buyers say new Canada Mortgage and Housing Corporation regulations reduce their desire or ability to purchase a recreational property. The changes will require Canadians to pay a minimum 20 per cent down payment on any residential or recreational property they purchase that is not their primary home.
Comparatively, Canadians are more concerned about increases in taxation affecting their ability to buy vacation properties, with 49 per cent responding that they are concerned about new taxation rules such as the HST on new-construction homes while 46 per cent express concern about increasing property taxes. Just over one-quarter of those surveyed (26 per cent) want to purchase a recreational property before interest rates start to rise, while 10 per cent said a hike in interest rates would stop them from purchasing.
“Canadians are generally confident about buying recreational properties because they see a pay off in terms of improved quality of life,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “The survey results show that tightening of lending requirements for second homes, coupled with an increase in taxes and expectations of higher interest rates, may have a dampening effect on the recreational property market. However, there continues to be strong demand for second homes, and Canadians appear prepared to make significant investments in order to enjoy their leisure time.”
Forty-three per cent of respondents said they would buy a vacation property because it is a good investment – down from 64 per cent in a comparable Royal LePage survey conducted in 2009.
“Fewer people are looking to acquire recreational property for its investment value this year, a direct result of rising cottage prices. The brave bargain hunters that purchased during the depths of the 2008-2009 recession have been rewarded by appreciating prices this year,” Soper said.
One-third of respondents in the 2010 survey said they will not have to make any financial or lifestyle changes in order to afford a recreational property, while 25 per cent of respondents said they plan to rent out their recreational property for part of the year (up from 13 per cent in 2009). Only 15 per cent plan to purchase a vacation home with friends or family.
The survey was commissioned as part of the 2010 Royal LePage Recreational Property Report, an annual market analysis of recreational property prices, trends and activity in selected leisure markets across the country.
The chart below shows the typical price range for standard waterfront, land-access properties across Canada. Properties in BC, Ontario and New Brunswick saw typical 3 bedroom, 100 foot lot properties sell above $1 million. New Brunswick also offered the most affordable properties, with some averaging as low as $65,000.
2010 Recreational Property Price SummaryAverage Price Range by Province**
Standard Waterfront, Land Access Cottage1,000 sq feet, 3 bedrooms, 100 foot lot
PROVINCE
AVERAGE PRICE RANGE 2010
Prince Edward Island
$180,000 – $200,000
Nova Scotia
$190,000
Newfoundland
$110,000
New Brunswick
$65,000 – $1,000,000
Quebec
$326,000 – $650,000
Ontario
$140,000 – $1,050,000
Manitoba
$189,000 – $360,000
Saskatchewan
$245,600 – $600,000
Alberta
$300,000 – $555,000
British Columbia
$345,000 – $1,500,000
NATIONAL AVERAGE
$65,000 – $1,500,000
According to the national poll, waterfront properties continue to be the most desirable recreational real estate for potential buyers, with 34 per cent ranking a “cottage by a lake” as their number one choice, down sharply from 68 per cent in 2009. Meanwhile, condominiums are the preferred property type for 24 per cent of buyers, up from just six per cent of buyers in 2009.
“Once again, lifestyle appears to be the driving factor behind recreational property trends, as more and more buyers are telling us they prefer the relatively hassle-free ownership of a second-home condominium, where you can spend your weekend on the water instead of whacking weeds,” said Soper.
For almost half of survey respondents, buying a recreational property this year will have little or no impact on their ability to vacation elsewhere. Forty-four per cent said buying a recreational property will make no difference to their vacation plans, while 31 per cent of respondents said recreational property ownership will make them more likely to vacation elsewhere. “This may indicate that buyers intend to use rental income from their vacation homes to finance travel abroad, or it could reflect the growing popularity of international house swapping or exchanges,” said Soper.
In the survey, buyers ranked the most important features they look for in a recreational property. Fifty-five per cent said waterfront or beach access, while 46 per cent answered four-season use, and 43 per cent said their vacation home must be in a quiet location.
Source: http://www.royallepage.ca/ Please go to the link to read more. Thank you and happy reading!
National opinion poll shows condominiums increasingly popular choice for a second home
TORONTO, May 31, 2010 –
Almost half of Canadians considering buying a recreational property will do so to improve their lifestyle, despite concerns about increasing taxes, rising interest rates and new regulations that require higher down payments on second homes, according to a nationwide survey of Canadian attitudes towards recreational property ownership conducted by Angus Reid and commissioned by Royal LePage Real Estate Services.
When buyers were asked why they plan to purchase recreational property, lifestyle was the number one reason given, at 47 per cent. Only one in four buyers say new Canada Mortgage and Housing Corporation regulations reduce their desire or ability to purchase a recreational property. The changes will require Canadians to pay a minimum 20 per cent down payment on any residential or recreational property they purchase that is not their primary home.
Comparatively, Canadians are more concerned about increases in taxation affecting their ability to buy vacation properties, with 49 per cent responding that they are concerned about new taxation rules such as the HST on new-construction homes while 46 per cent express concern about increasing property taxes. Just over one-quarter of those surveyed (26 per cent) want to purchase a recreational property before interest rates start to rise, while 10 per cent said a hike in interest rates would stop them from purchasing.
“Canadians are generally confident about buying recreational properties because they see a pay off in terms of improved quality of life,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “The survey results show that tightening of lending requirements for second homes, coupled with an increase in taxes and expectations of higher interest rates, may have a dampening effect on the recreational property market. However, there continues to be strong demand for second homes, and Canadians appear prepared to make significant investments in order to enjoy their leisure time.”
Forty-three per cent of respondents said they would buy a vacation property because it is a good investment – down from 64 per cent in a comparable Royal LePage survey conducted in 2009.
“Fewer people are looking to acquire recreational property for its investment value this year, a direct result of rising cottage prices. The brave bargain hunters that purchased during the depths of the 2008-2009 recession have been rewarded by appreciating prices this year,” Soper said.
One-third of respondents in the 2010 survey said they will not have to make any financial or lifestyle changes in order to afford a recreational property, while 25 per cent of respondents said they plan to rent out their recreational property for part of the year (up from 13 per cent in 2009). Only 15 per cent plan to purchase a vacation home with friends or family.
The survey was commissioned as part of the 2010 Royal LePage Recreational Property Report, an annual market analysis of recreational property prices, trends and activity in selected leisure markets across the country.
The chart below shows the typical price range for standard waterfront, land-access properties across Canada. Properties in BC, Ontario and New Brunswick saw typical 3 bedroom, 100 foot lot properties sell above $1 million. New Brunswick also offered the most affordable properties, with some averaging as low as $65,000.
2010 Recreational Property Price SummaryAverage Price Range by Province**
Standard Waterfront, Land Access Cottage1,000 sq feet, 3 bedrooms, 100 foot lot
PROVINCE
AVERAGE PRICE RANGE 2010
Prince Edward Island
$180,000 – $200,000
Nova Scotia
$190,000
Newfoundland
$110,000
New Brunswick
$65,000 – $1,000,000
Quebec
$326,000 – $650,000
Ontario
$140,000 – $1,050,000
Manitoba
$189,000 – $360,000
Saskatchewan
$245,600 – $600,000
Alberta
$300,000 – $555,000
British Columbia
$345,000 – $1,500,000
NATIONAL AVERAGE
$65,000 – $1,500,000
According to the national poll, waterfront properties continue to be the most desirable recreational real estate for potential buyers, with 34 per cent ranking a “cottage by a lake” as their number one choice, down sharply from 68 per cent in 2009. Meanwhile, condominiums are the preferred property type for 24 per cent of buyers, up from just six per cent of buyers in 2009.
“Once again, lifestyle appears to be the driving factor behind recreational property trends, as more and more buyers are telling us they prefer the relatively hassle-free ownership of a second-home condominium, where you can spend your weekend on the water instead of whacking weeds,” said Soper.
For almost half of survey respondents, buying a recreational property this year will have little or no impact on their ability to vacation elsewhere. Forty-four per cent said buying a recreational property will make no difference to their vacation plans, while 31 per cent of respondents said recreational property ownership will make them more likely to vacation elsewhere. “This may indicate that buyers intend to use rental income from their vacation homes to finance travel abroad, or it could reflect the growing popularity of international house swapping or exchanges,” said Soper.
In the survey, buyers ranked the most important features they look for in a recreational property. Fifty-five per cent said waterfront or beach access, while 46 per cent answered four-season use, and 43 per cent said their vacation home must be in a quiet location.
Source: http://www.royallepage.ca/ Please go to the link to read more. Thank you and happy reading!
Thursday, May 20, 2010
GTA existing homes sales may break record this year
A new record will be set with sales of existing homes in the GTA expecting to reach six digits for the first time by the end of 2010, but a report by the CMHC says things will be "quite different" for 2011 as the market edges down.
"The era of rock bottom mortgage rates is coming to an end and the red hot Greater Toronto Area housing market will begin to lose its steam," said Shaun Hildebrand, senior market analyst for the CMHC.
Sales in the GTA are expected to pass the 100,000 mark for the first time to 101,000. In 2007, sales hit $95,000 dollars, the peak of the market.
The CMHC also expects the rise of price appreciation to continue into 2011 which will result in 16 consecutive years of increases. They also forecast that prices will slightly increase by 1.7 per cent at the end of next year.
They also say that prices will probably flat line after 2011 as affordability becomes an issue.
"Five year mortgage rates will be a full percentage point higher by the end of the year.
Combining higher rates with the new reality of average prices well above $400,000 will make the transition to homeownership more expensive," said Hildebrand. "The erosion of affordability will cause delay for many first time buyers."
Source: www.mortgagebrokernews.ca May 20, 2010
"The era of rock bottom mortgage rates is coming to an end and the red hot Greater Toronto Area housing market will begin to lose its steam," said Shaun Hildebrand, senior market analyst for the CMHC.
Sales in the GTA are expected to pass the 100,000 mark for the first time to 101,000. In 2007, sales hit $95,000 dollars, the peak of the market.
The CMHC also expects the rise of price appreciation to continue into 2011 which will result in 16 consecutive years of increases. They also forecast that prices will slightly increase by 1.7 per cent at the end of next year.
They also say that prices will probably flat line after 2011 as affordability becomes an issue.
"Five year mortgage rates will be a full percentage point higher by the end of the year.
Combining higher rates with the new reality of average prices well above $400,000 will make the transition to homeownership more expensive," said Hildebrand. "The erosion of affordability will cause delay for many first time buyers."
Source: www.mortgagebrokernews.ca May 20, 2010
CMHC reports seeing rising housing starts over next two years
The next two years are expected to see housing starts rise due to demand and strong economic conditions, the CMHC reported in their forecast for new home construction and residential sales.
They expect housing starts of 182,000 units, which is up from 175,000 units in a previous view. In 2010, they are expected to see a range between 166,900 to 199,600.
Next year, the CMHC said it sees housing starts at 179,600 units, ranging between 148,600 to 208,800 units, compared with the forecasting for 2011 of 175,150 units last quarter.
The new government measures for the mortgage market, which took effect in April, will aid in the long-term stability of Canada's housing market, CMHC's chief economist Bob Dugan cited.
According to the rule changes, borrowers are now required to qualify on a five-year fixed-rate mortgage even if they choose a lower-cost variable mortgage. The government also lowered the maximum amounts that can be withdrawn when borrowers refinance their mortgages. A minimum down payment of 20 per cent is also required now for insured mortgages coupled with properties purchased as housing investments that the owner will not occupy.
In 2009 there were 149,081 housing starts.
Source: www.mortgagebrokernews.ca May 20, 2010
They expect housing starts of 182,000 units, which is up from 175,000 units in a previous view. In 2010, they are expected to see a range between 166,900 to 199,600.
Next year, the CMHC said it sees housing starts at 179,600 units, ranging between 148,600 to 208,800 units, compared with the forecasting for 2011 of 175,150 units last quarter.
The new government measures for the mortgage market, which took effect in April, will aid in the long-term stability of Canada's housing market, CMHC's chief economist Bob Dugan cited.
According to the rule changes, borrowers are now required to qualify on a five-year fixed-rate mortgage even if they choose a lower-cost variable mortgage. The government also lowered the maximum amounts that can be withdrawn when borrowers refinance their mortgages. A minimum down payment of 20 per cent is also required now for insured mortgages coupled with properties purchased as housing investments that the owner will not occupy.
In 2009 there were 149,081 housing starts.
Source: www.mortgagebrokernews.ca May 20, 2010
Monday, May 17, 2010
National Royal LePage Garage Sales
THANK YOU for supporting the National Garage Sale for Shelter!
On May 15, 2010 Royal LePage Vancouver REALTOR® gathered and donated our time to raise money for abuse women. We raised more than $4,250!!!!
Thank you for all who supported us! See you next year!
For information about Shelter Foundation pls. go to: http://www.royallepage.ca/en/community/shelter-foundation/index.aspx
Friday, May 14, 2010
The Vancouver SunRun 2010K
On Mother's Day, May 9, 2010, over 50,000 people including Royal LePage REALTOR® took to the streets of Vancouver in the 2010 Sun Run.
Tuesday, April 27, 2010
Study finds sales of luxury homes soaring
April 27, 2010
A study conducted by Re/max saw luxury homes sales jump in the first quarter of 2010, showing that affluent purchasers are moving to take advantage of favourable market conditions.
The study showed that nine out of the 13 markets examined had shattered records and set all-time highs for first quarter activity in the upper end.
According to Re/Max, an improved economy, increased personal wealth, immigration and foreign investment all contributed to the influx in sales.
Greater Vancouver topped the entry-level price point for high-end homes at $2 million dollars, followed by Greater Toronto and Montreal at $1.5 million dollars.
Source: brokernews.ca
A study conducted by Re/max saw luxury homes sales jump in the first quarter of 2010, showing that affluent purchasers are moving to take advantage of favourable market conditions.
The study showed that nine out of the 13 markets examined had shattered records and set all-time highs for first quarter activity in the upper end.
According to Re/Max, an improved economy, increased personal wealth, immigration and foreign investment all contributed to the influx in sales.
Greater Vancouver topped the entry-level price point for high-end homes at $2 million dollars, followed by Greater Toronto and Montreal at $1.5 million dollars.
Source: brokernews.ca
Canada to see stronger economic growth this year
April 27, 2010
According to a survey released earlier this week by the Department of Finance, Canada will see stronger economic growth this year and lower unemployment rates from 2010 through to 2012, more than previously believed.
Instead of the economy expanding 2.6 per cent that was originally projected in Finance Minister's, Jim Flaherty's most recent budget, it is forecast to expand 3.1 per cent this year.
Forecasts for the next four years are roughly the same as those used in the government's fiscal plan. The Department of Finance now sees growth of 3.1 per cent in 2011 as opposed to 3.2 per cent, and 2.9 per cent in 2012 instead of 3 per cent.
The latest growth forecasts, based on a poll of 15 economists, are similar to those of the IMF, which predicts that Canada will seen an expansion of 3.1 per cent this year, the same as the United States, and the fastest among the Group of Seven. For 2011, the IMF sees a 3.2 per cent growth.
Source: brokernews.ca
According to a survey released earlier this week by the Department of Finance, Canada will see stronger economic growth this year and lower unemployment rates from 2010 through to 2012, more than previously believed.
Instead of the economy expanding 2.6 per cent that was originally projected in Finance Minister's, Jim Flaherty's most recent budget, it is forecast to expand 3.1 per cent this year.
Forecasts for the next four years are roughly the same as those used in the government's fiscal plan. The Department of Finance now sees growth of 3.1 per cent in 2011 as opposed to 3.2 per cent, and 2.9 per cent in 2012 instead of 3 per cent.
The latest growth forecasts, based on a poll of 15 economists, are similar to those of the IMF, which predicts that Canada will seen an expansion of 3.1 per cent this year, the same as the United States, and the fastest among the Group of Seven. For 2011, the IMF sees a 3.2 per cent growth.
Source: brokernews.ca
Tuesday, March 30, 2010
Banks start interest rate shake-up
March 30, 2010
Four big banks have increased their posted rates on fixed mortgages, signaling the start of an upward move on record-low interest rates.
Royal Bank, TD Canada Trust and Laurentian all moved their posted rates on five-year fixed mortgages by 0.6 per cent yesterday, a move followed by CIBC today. Many non-banks have already followed, prompting a surge in requests from variable-rate clients to lock into fixed rates.
"The phones have been ringing off the hook since yesterday," said Donna Ramsay, a Mortgage Architects broker based in Orangeville, Ont. "We have several clients that we have committed to calling to see if they want to lock into a fixed. We tell them that we're not here to tell them what to do -- we'll give them the facts."
The interest rate increase will also mean higher qualifying criteria for new clients, who must meet the five-year posted fixed rate when the new mortgage insurance rules kick in on April 19.
CIBC economist Benjamin Tal told the Globe and Mail the rise in rates along with other factors means the booming housing market will slow down significantly after spring.
"Given where interest rates are now, I still think you'll see an extremely strong spring. However, after that I think the housing market will stagnate," Mr. Tal said. "We are in the ninth inning of this booming house market. We are not expecting a crash, but we will stagnate."
Four big banks have increased their posted rates on fixed mortgages, signaling the start of an upward move on record-low interest rates.
Royal Bank, TD Canada Trust and Laurentian all moved their posted rates on five-year fixed mortgages by 0.6 per cent yesterday, a move followed by CIBC today. Many non-banks have already followed, prompting a surge in requests from variable-rate clients to lock into fixed rates.
"The phones have been ringing off the hook since yesterday," said Donna Ramsay, a Mortgage Architects broker based in Orangeville, Ont. "We have several clients that we have committed to calling to see if they want to lock into a fixed. We tell them that we're not here to tell them what to do -- we'll give them the facts."
The interest rate increase will also mean higher qualifying criteria for new clients, who must meet the five-year posted fixed rate when the new mortgage insurance rules kick in on April 19.
CIBC economist Benjamin Tal told the Globe and Mail the rise in rates along with other factors means the booming housing market will slow down significantly after spring.
"Given where interest rates are now, I still think you'll see an extremely strong spring. However, after that I think the housing market will stagnate," Mr. Tal said. "We are in the ninth inning of this booming house market. We are not expecting a crash, but we will stagnate."
Wednesday, March 24, 2010
Housing market to be tamer over next decade: Scotiabank
Wednesday, 24 March 2010
Despite 2010's strong start, Scotiabank expects the "twenty-tens" Canadian housing market to pale in comparison to the previous decade.
A report titled "Global Real Estate Trends", released by the bank yesterday, speculated the volume of home sales transactions will increase by 10 per cent compared to last year while average prices are expected to break $340,000, a record high. Housing starts are also expected to increase.
But this hearty activity is expected to drop off later this year when new qualifying criteria for insured mortgages take effect in April and the HST is introduced in July. Scotiabank expects lower sales volumes, lower prices, and a decrease in new construction in 2011.
"It is time for Canadians to reset their housing market expectations. We expect 2010 will mark a transition year as the boom of the 'aughts' gives way to a sustained period of more subdued housing activity over the coming decade," the report said.
The millennium decade, in comparison, was, for the most part, consistently booming. Between 2000 and 2009, real home prices increased an average of 5.2 per cant annually, the strongest decade of real price appreciation in at least 50 years. Housing starts during the decade averaged over 200,000 units a year, the highest they'd been since the 1970s.
Strong, economic growth, low unemployment, innovative mortgage products and an increase of real per capita disposable income all contributed to the demand seen last decade, Scotiabank said. The bank anticipates much slower growth for the Canadian economy through at least 2015.
http://www.mortgagebrokernews.ca/
Despite 2010's strong start, Scotiabank expects the "twenty-tens" Canadian housing market to pale in comparison to the previous decade.
A report titled "Global Real Estate Trends", released by the bank yesterday, speculated the volume of home sales transactions will increase by 10 per cent compared to last year while average prices are expected to break $340,000, a record high. Housing starts are also expected to increase.
But this hearty activity is expected to drop off later this year when new qualifying criteria for insured mortgages take effect in April and the HST is introduced in July. Scotiabank expects lower sales volumes, lower prices, and a decrease in new construction in 2011.
"It is time for Canadians to reset their housing market expectations. We expect 2010 will mark a transition year as the boom of the 'aughts' gives way to a sustained period of more subdued housing activity over the coming decade," the report said.
The millennium decade, in comparison, was, for the most part, consistently booming. Between 2000 and 2009, real home prices increased an average of 5.2 per cant annually, the strongest decade of real price appreciation in at least 50 years. Housing starts during the decade averaged over 200,000 units a year, the highest they'd been since the 1970s.
Strong, economic growth, low unemployment, innovative mortgage products and an increase of real per capita disposable income all contributed to the demand seen last decade, Scotiabank said. The bank anticipates much slower growth for the Canadian economy through at least 2015.
http://www.mortgagebrokernews.ca/
Friday, March 19, 2010
More housing supply helps balance market: CREA
Monday, 15 March 2010
National home sales decreased by 1.5 per cent from January to February, according to the latest CREA numbers, in large part due to increased supply. Vancouver saw the biggest decline, likely due to the Olympics, while Toronto experienced the biggest gain.
"Housing markets are becoming more balanced," said CREA chief economist Gregory Klump. "There are still a number of major markets where sales negotiations favour the seller due to a shortage of inventory, but supply has begun rising. Further expected supply increases will continue to take the steam out of housing markets as the year progresses."
Despite the slight decrease, year-over-year numbers remained strong with residential sales activity up 44 per cent from the same month last year and the average price - $335,665 - up 18.2 per cent from one year ago.
Sales and prices are expected to become "more subdued" throughout the year, the CREA said. However, it expects sales activity to elevate in Ontario and B.C. before the introduction of the harmonized sales tax in July.
"Even with the restraints put on the actual market, Ontario is a very unique landscape -- it's becoming a hotspot that drives prices no matter what," said Jeff Mayer, a Toronto-based Mortgage Intelligence agent. "If you look at the cost per square foot, it has risen dramatically and you only see that in hot, hot areas."
National home sales decreased by 1.5 per cent from January to February, according to the latest CREA numbers, in large part due to increased supply. Vancouver saw the biggest decline, likely due to the Olympics, while Toronto experienced the biggest gain.
"Housing markets are becoming more balanced," said CREA chief economist Gregory Klump. "There are still a number of major markets where sales negotiations favour the seller due to a shortage of inventory, but supply has begun rising. Further expected supply increases will continue to take the steam out of housing markets as the year progresses."
Despite the slight decrease, year-over-year numbers remained strong with residential sales activity up 44 per cent from the same month last year and the average price - $335,665 - up 18.2 per cent from one year ago.
Sales and prices are expected to become "more subdued" throughout the year, the CREA said. However, it expects sales activity to elevate in Ontario and B.C. before the introduction of the harmonized sales tax in July.
"Even with the restraints put on the actual market, Ontario is a very unique landscape -- it's becoming a hotspot that drives prices no matter what," said Jeff Mayer, a Toronto-based Mortgage Intelligence agent. "If you look at the cost per square foot, it has risen dramatically and you only see that in hot, hot areas."
Monday, March 15, 2010
Home Affordability toughens,especially in top three cities
Monday, 15 March 2010
The housing market in Vancouver is "uncomfortably hot", according to the latest RBC Housing Affordability Measure, while Toronto and Montreal are on pace to set records due to surging demand.
The report - which looks at housing costs based on owning a detached bungalow - said national affordability measures eroded slightly in the fourth quarter of 2009 but were mitigated by continued low mortgage rates and gains in household income.
"The extent of the deterioration [of affordability] will depend on the speed at which interest rates rise," the report said, adding the new mortgage rules coming into effect in April could reduce demand. "On that score, the pace of increase should be fairly steady throughout 2010 and 2011, helping to alleviate concerns of an imminent derailing of housing affordability in Canada."
While Vancouver had the most unfavourable conditions with house prices at record-high levels, Calgary saw affordability improve due to a lagging economy and the report said Ottawa had "the best of both worlds" with both strong activity and improving affordability. Atlantic Canada also saw favourable buyer conditions in the fourth quarter of 2009.
The housing market in Vancouver is "uncomfortably hot", according to the latest RBC Housing Affordability Measure, while Toronto and Montreal are on pace to set records due to surging demand.
The report - which looks at housing costs based on owning a detached bungalow - said national affordability measures eroded slightly in the fourth quarter of 2009 but were mitigated by continued low mortgage rates and gains in household income.
"The extent of the deterioration [of affordability] will depend on the speed at which interest rates rise," the report said, adding the new mortgage rules coming into effect in April could reduce demand. "On that score, the pace of increase should be fairly steady throughout 2010 and 2011, helping to alleviate concerns of an imminent derailing of housing affordability in Canada."
While Vancouver had the most unfavourable conditions with house prices at record-high levels, Calgary saw affordability improve due to a lagging economy and the report said Ottawa had "the best of both worlds" with both strong activity and improving affordability. Atlantic Canada also saw favourable buyer conditions in the fourth quarter of 2009.
Monday, March 1, 2010
Really NEW Business Opportunity
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Need an extra income? Take advantage of the power of the internet and earn extra money and leverage your time. This is a new business opportunity and it's free to join and it comes with your very own travel website to market your products.
http://www.silverlineclub.com/?user=destination
Sunday, February 28, 2010
Why Canada's housing market didn't burst
Tuesday, 16 February 2010
Housing markets in the United States and Canada are similar in many respects, but each has fared quite differently since the onset of the financial crisis.Unlike the U.S., Canada has not experienced a dramatic increase in mortgage defaults, nor has any Canadian bank required a government bailout. As a result, observers such as The Economist have pointed to Canada as "a country that got things right."
The different housing market outcomes in Canada and the U.S. can tell us something about the underlying causes of the housing boom and subsequent bust in the latter. In particular, they can be used to evaluate the roles that low interest rates and relaxed lending standards played.
Monetary Policy and the U.S. Housing Bust Some observers blame monetary policy for lowering interest rates over 2002-2005, pushing up housing demand, increasing residential investment and raising housing prices. In this view, the monetary-policy induced housing boom thus set the stage for an inevitable housing bust.
The low interest rate policy of the Federal Reserve over 2001-2005 is often cited as a key factor in the U.S. housing bust. The main narrative is that by lowering short-term interest rates, longer-maturity mortgage interest rates are pushed down. This increases the demand for housing, puts upward pressure on housing prices and encourages builders to ramp-up construction of new homes. This leads to an "oversupply" of new homes, which triggered the housing bust in the U.S.
There are also claims that interest rates were too low over 2001-2005, when looked at by both historical standards, as well as compared to those predicted by the Taylor rule (a monetary policy rule which relates U.S. Federal Reserve's ideal target rates to inflation and GDP).
The Bank of Canada made dramatic reductions in its target interest rate over 2001-2002, but one might argue that Canadian monetary policy was not quite as "loose" as that in the U.S. as it maintained a higher overnight rate over 2002 to 2004.
But a case can be made that Canadian and American monetary policies were very similar, at least in terms of the housing market. Estimates put the deviations from the Taylor rule for Canada and the U.S. over 2001-2006 to be nearly identical. In fact, the two benchmark mortgage interest rates move closely with one another until after the beginning of the U.S. housing market crisis, when U.S. rates fell significantly below Canadian rates.
Mortgage interest rates-the main direct channel through which monetary policy impacts the housing market-tracked each other closely in the two countries, but unlike the U.S., where the mainstay of the mortgage market is the 30-year fixed mortgage, the most common mortgage product in Canada is a five-year fixed-rate mortgage (with a 25-year amortization period).
Relaxed Lending Standards: different subprime lending boomsAnother leading explanation of the housing boom and bust relies critically on relaxed lending standards. This story is linked to the dramatic rise in subprime lending and high levels of loan securitization, which some commentators have argued reduced the incentives for mortgage originators to maintain underwriting standards. This is one area where there was a significant difference between the two countries, both in the size and nature of the subprime market and in the fraction of mortgages securitized.
Subprime lending has grown rapidly in both countries, though the magnitude has been far more striking in the U.S. While subprime mortgages accounted for less than five per cent of mortgage originations in the U.S. in 1994, one-fifth of all mortgages originated between 2004 and 2006 were subprime.But while subprime lending also increased in Canada, it remained much smaller than in the U.S.
The most cited estimate is that subprime lenders had a market share of roughly five per cent in 2006, compared to 22 per cent in the U.S. Moreover, the Canadian subprime market never expanded significantly into newer products, such as interest-only or negative amortization mortgages, whose popularity grew rapidly in the U.S. from 2003 to 2006. Instead, the Canadian subprime market mainly offered products popularized in the U.S. during the 1990s, such as longer amortization periods for loans (from 25 to 40 years), and mainly targeted near-prime borrowers.
Securitization has also been less common in Canada than in the United States, with roughly 25 per cent of Canadian mortgages securitized in 2007 versus nearly 60 per cent in the U.S. The Canadian securitization market has grown rapidly over the past decade, rising from roughly five per cent of mortgages in 1998 to over 25 per cent in 2008.
However, in many ways, the Canadian market resembles the early stages of the U.S. mortgage securitization market, as most securitized mortgages in Canada are backed by an explicit government guarantee. This government guarantee requires limits on borrowers' debt-service ratios and amortization periods, which makes it more difficult for lenders to offer some types of subprime loans.
The subprime story is also consistent with the different pattern of mortgage delinquencies in Canada and the U.S. In the U.S., mortgage delinquencies for both prime and nonprime mortgages began to rise before the recession began and unemployment rates began to climb.
In contrast, mortgage delinquencies in Canada have only recently begun to increase, after unemployment rates started rising and the Canadian and world economies slowed sharply in the fall of 2008. Finally, the relaxed lending story is consistent with the fact that the U.S. experienced a housing bust over 2007-2009 while Canada did not.
While the expansion of subprime lending provided a temporary boost to housing price growth rates, when prices stopped rising, the inability of some borrowers to refinance homes they could not afford led to a spike of delinquencies. The resulting increase in liquidation and foreclosure sales put additional downward pressure on house prices, which, in turn, pushed more borrowers into default. This negative feedback cycle helped push a correction in the housing market into a housing bust.
One possible critique of this argument is that while Canada has not yet experienced a housing bust, it is likely to experience one in the next year. Indeed, a recent Merrill-Lynch- Canada report noted that Canadian house prices over the past decade closely resemble U.S. house prices with a two-year lag. Based on this, they concluded that Canada was also likely to experience large decline in house prices over the coming year.
Canada's smaller subprime market share and fewer households with high LTV ratios, however, suggest that the country is less likely to see the rapid increase in defaults that helped trigger the bust in U.S. housing prices. So far the incoming data suggest that the Canadian housing market is likely to experience a housing market slowdown rather than a bust.
Housing markets in the United States and Canada are similar in many respects, but each has fared quite differently since the onset of the financial crisis.Unlike the U.S., Canada has not experienced a dramatic increase in mortgage defaults, nor has any Canadian bank required a government bailout. As a result, observers such as The Economist have pointed to Canada as "a country that got things right."
The different housing market outcomes in Canada and the U.S. can tell us something about the underlying causes of the housing boom and subsequent bust in the latter. In particular, they can be used to evaluate the roles that low interest rates and relaxed lending standards played.
Monetary Policy and the U.S. Housing Bust Some observers blame monetary policy for lowering interest rates over 2002-2005, pushing up housing demand, increasing residential investment and raising housing prices. In this view, the monetary-policy induced housing boom thus set the stage for an inevitable housing bust.
The low interest rate policy of the Federal Reserve over 2001-2005 is often cited as a key factor in the U.S. housing bust. The main narrative is that by lowering short-term interest rates, longer-maturity mortgage interest rates are pushed down. This increases the demand for housing, puts upward pressure on housing prices and encourages builders to ramp-up construction of new homes. This leads to an "oversupply" of new homes, which triggered the housing bust in the U.S.
There are also claims that interest rates were too low over 2001-2005, when looked at by both historical standards, as well as compared to those predicted by the Taylor rule (a monetary policy rule which relates U.S. Federal Reserve's ideal target rates to inflation and GDP).
The Bank of Canada made dramatic reductions in its target interest rate over 2001-2002, but one might argue that Canadian monetary policy was not quite as "loose" as that in the U.S. as it maintained a higher overnight rate over 2002 to 2004.
But a case can be made that Canadian and American monetary policies were very similar, at least in terms of the housing market. Estimates put the deviations from the Taylor rule for Canada and the U.S. over 2001-2006 to be nearly identical. In fact, the two benchmark mortgage interest rates move closely with one another until after the beginning of the U.S. housing market crisis, when U.S. rates fell significantly below Canadian rates.
Mortgage interest rates-the main direct channel through which monetary policy impacts the housing market-tracked each other closely in the two countries, but unlike the U.S., where the mainstay of the mortgage market is the 30-year fixed mortgage, the most common mortgage product in Canada is a five-year fixed-rate mortgage (with a 25-year amortization period).
Relaxed Lending Standards: different subprime lending boomsAnother leading explanation of the housing boom and bust relies critically on relaxed lending standards. This story is linked to the dramatic rise in subprime lending and high levels of loan securitization, which some commentators have argued reduced the incentives for mortgage originators to maintain underwriting standards. This is one area where there was a significant difference between the two countries, both in the size and nature of the subprime market and in the fraction of mortgages securitized.
Subprime lending has grown rapidly in both countries, though the magnitude has been far more striking in the U.S. While subprime mortgages accounted for less than five per cent of mortgage originations in the U.S. in 1994, one-fifth of all mortgages originated between 2004 and 2006 were subprime.But while subprime lending also increased in Canada, it remained much smaller than in the U.S.
The most cited estimate is that subprime lenders had a market share of roughly five per cent in 2006, compared to 22 per cent in the U.S. Moreover, the Canadian subprime market never expanded significantly into newer products, such as interest-only or negative amortization mortgages, whose popularity grew rapidly in the U.S. from 2003 to 2006. Instead, the Canadian subprime market mainly offered products popularized in the U.S. during the 1990s, such as longer amortization periods for loans (from 25 to 40 years), and mainly targeted near-prime borrowers.
Securitization has also been less common in Canada than in the United States, with roughly 25 per cent of Canadian mortgages securitized in 2007 versus nearly 60 per cent in the U.S. The Canadian securitization market has grown rapidly over the past decade, rising from roughly five per cent of mortgages in 1998 to over 25 per cent in 2008.
However, in many ways, the Canadian market resembles the early stages of the U.S. mortgage securitization market, as most securitized mortgages in Canada are backed by an explicit government guarantee. This government guarantee requires limits on borrowers' debt-service ratios and amortization periods, which makes it more difficult for lenders to offer some types of subprime loans.
The subprime story is also consistent with the different pattern of mortgage delinquencies in Canada and the U.S. In the U.S., mortgage delinquencies for both prime and nonprime mortgages began to rise before the recession began and unemployment rates began to climb.
In contrast, mortgage delinquencies in Canada have only recently begun to increase, after unemployment rates started rising and the Canadian and world economies slowed sharply in the fall of 2008. Finally, the relaxed lending story is consistent with the fact that the U.S. experienced a housing bust over 2007-2009 while Canada did not.
While the expansion of subprime lending provided a temporary boost to housing price growth rates, when prices stopped rising, the inability of some borrowers to refinance homes they could not afford led to a spike of delinquencies. The resulting increase in liquidation and foreclosure sales put additional downward pressure on house prices, which, in turn, pushed more borrowers into default. This negative feedback cycle helped push a correction in the housing market into a housing bust.
One possible critique of this argument is that while Canada has not yet experienced a housing bust, it is likely to experience one in the next year. Indeed, a recent Merrill-Lynch- Canada report noted that Canadian house prices over the past decade closely resemble U.S. house prices with a two-year lag. Based on this, they concluded that Canada was also likely to experience large decline in house prices over the coming year.
Canada's smaller subprime market share and fewer households with high LTV ratios, however, suggest that the country is less likely to see the rapid increase in defaults that helped trigger the bust in U.S. housing prices. So far the incoming data suggest that the Canadian housing market is likely to experience a housing market slowdown rather than a bust.
Tuesday, February 9, 2010
Boom or Bubble?
New numbers build speculation
Monday, 8 February 2010
Housing starts hit a 15-month high according to a real estate report today, as media all across Canada continued to speculate whether the latest gains had stretched too far.
The Wall Street Journal and Canadian Business were amongst the publications recently to ask whether Canada's surprise performance in real estate was the start of a boom in the industry, or instead was nearing a bubble about to burst.
Rather than anything dramatic, however, most experts in the real estate industry still see 2010 as another strong year with a slowing of price gains in the second half as supply increases.
The seasonally adjusted annual rate of housing starts reached 186,300 units in January, up 5.8 per cent from 176,100 in December, according to the CMHC.
In January last year, housing starts began the year with 149,081 units, with activity progressing as the year went on.
Regionally, B.C. had largest increase in housing starts, with a 19.8 per cent jump in housing units in the province. In the Prairie region, the seasonally adjusted rate of urban starts decreased by 4.8 per cent.
Source: www.mortgagebrokernews.ca
Monday, 8 February 2010
Housing starts hit a 15-month high according to a real estate report today, as media all across Canada continued to speculate whether the latest gains had stretched too far.
The Wall Street Journal and Canadian Business were amongst the publications recently to ask whether Canada's surprise performance in real estate was the start of a boom in the industry, or instead was nearing a bubble about to burst.
Rather than anything dramatic, however, most experts in the real estate industry still see 2010 as another strong year with a slowing of price gains in the second half as supply increases.
The seasonally adjusted annual rate of housing starts reached 186,300 units in January, up 5.8 per cent from 176,100 in December, according to the CMHC.
In January last year, housing starts began the year with 149,081 units, with activity progressing as the year went on.
Regionally, B.C. had largest increase in housing starts, with a 19.8 per cent jump in housing units in the province. In the Prairie region, the seasonally adjusted rate of urban starts decreased by 4.8 per cent.
Source: www.mortgagebrokernews.ca
Saturday, February 6, 2010
Who do you hang out with?
I thought to share this with you from Joeann Fossland
It DOES Make a difference! You’ve heard me (and many others!) say “what you focus on expands”. If you surround yourself news and people who give you more evidence of how tough it is…it’s easy to buy into excuses for your own results. If you want to attract and create more to be positive, happy and grateful about ... your thinking and positive emotional state are the best tools you have to start with. Is it time to upgrade your Rolodex and your experiences? Have you outgrown some of the people you hang out with? Or are the folks to spend time with each day inspiring and encouraging?
In 2010, I am personally passionate about what I am calling Social Partnering™. I’ll be writing a series of articles over the next few months about how to use Social Partnering™ and offering ways for you to use the concept to be more successful this year! I am kicking this off here and there will be more on this month’s Fossland’s Forum (or jump in with one of the two mastermind groups I’ll be personally coaching-see below).
From expansion of your strategic partners to participation with positive people or mastermind groups, I see the opportunity to the average agent to excel and the extraordinary agent to soar this year. With social media tools and Web 2.0, our ability to reach out and use our good relationship social capital to enhance the value we bring clients and customers is expanded in miraculous ways. That doesn’t mean we won’t bring the online offline-in fact, that’s the point! A powerful combination of expanding your previous reach and adding the new is going to bring happiness to those who master the skill. Our relationships then bring value to us! And, I know many of you are very, very good at relationships…so you already are a leg up here!
And, this is really where it all starts. You know that your attitude is so important to your success and who you surround yourself with can make it easier or harder, right. Which do you want this year: easy or hard?
Jack Canfield, the author and motivational speaker, has shared a personal story. He had become very successful, using the principles he learned from Clement Stone and the teachings of Napoleon Hill, author of Think and Grow Rich, (this book is still available free here). He says he had grown his yearly income to $1,000,000 and it was stable and steady there. He set, however, a goal of $10,000,000 but his income stayed stuck at $1M. As he ruminated about why he was stuck, someone asked him what the average income was of those in his mastermind group. This was his “ah ha” moment as he realized they were all making $1M too! Now, not a bad a group that most of us could benefit from hanging out with, but not a fit for his expanded dreams.
Have you expanded your dreams and not matched new partners, friends and supporters to those NEW visions? Or have you given up and become resigned that you can have what you really want because of some outside influences, like the economy or some other personal excuse? There WERE people having their very best year ever last year! Were you in that group? If you, hooray for you! If not, now is the time to decide what you really want in 2010. Old strategies will not get you there. It’s a brave, new world. And one filled with opportunity! How amazingly fortunate we are to be living here in the United States with so many freedoms to create our lives.
Here are some other actions that will help:
Limit your exposure to the media and the “bad” news
Add some daily inspiring messages to your life.
Make a list of your 5 closest friends-do they reflect and support your dreams?
Find one or two new friends to hang out with some more that are inspiring
Buddy with someone who is as inspiring and committed as you want to be and become accountability partners
Form or join a mastermind group and meet regularly to support each other
Begin and end each day counting your blessings!
Put yourself in a place this year where you get the support and encouragement you need to stay focused, aligned and productive.
For 2010, take in less negative input and find the good every day and I promise you it would feel better. It may sound simple, but the best actions usually are. And, it is much easier if the people around you are aligned with the same thinking!
It DOES Make a difference! You’ve heard me (and many others!) say “what you focus on expands”. If you surround yourself news and people who give you more evidence of how tough it is…it’s easy to buy into excuses for your own results. If you want to attract and create more to be positive, happy and grateful about ... your thinking and positive emotional state are the best tools you have to start with. Is it time to upgrade your Rolodex and your experiences? Have you outgrown some of the people you hang out with? Or are the folks to spend time with each day inspiring and encouraging?
In 2010, I am personally passionate about what I am calling Social Partnering™. I’ll be writing a series of articles over the next few months about how to use Social Partnering™ and offering ways for you to use the concept to be more successful this year! I am kicking this off here and there will be more on this month’s Fossland’s Forum (or jump in with one of the two mastermind groups I’ll be personally coaching-see below).
From expansion of your strategic partners to participation with positive people or mastermind groups, I see the opportunity to the average agent to excel and the extraordinary agent to soar this year. With social media tools and Web 2.0, our ability to reach out and use our good relationship social capital to enhance the value we bring clients and customers is expanded in miraculous ways. That doesn’t mean we won’t bring the online offline-in fact, that’s the point! A powerful combination of expanding your previous reach and adding the new is going to bring happiness to those who master the skill. Our relationships then bring value to us! And, I know many of you are very, very good at relationships…so you already are a leg up here!
And, this is really where it all starts. You know that your attitude is so important to your success and who you surround yourself with can make it easier or harder, right. Which do you want this year: easy or hard?
Jack Canfield, the author and motivational speaker, has shared a personal story. He had become very successful, using the principles he learned from Clement Stone and the teachings of Napoleon Hill, author of Think and Grow Rich, (this book is still available free here). He says he had grown his yearly income to $1,000,000 and it was stable and steady there. He set, however, a goal of $10,000,000 but his income stayed stuck at $1M. As he ruminated about why he was stuck, someone asked him what the average income was of those in his mastermind group. This was his “ah ha” moment as he realized they were all making $1M too! Now, not a bad a group that most of us could benefit from hanging out with, but not a fit for his expanded dreams.
Have you expanded your dreams and not matched new partners, friends and supporters to those NEW visions? Or have you given up and become resigned that you can have what you really want because of some outside influences, like the economy or some other personal excuse? There WERE people having their very best year ever last year! Were you in that group? If you, hooray for you! If not, now is the time to decide what you really want in 2010. Old strategies will not get you there. It’s a brave, new world. And one filled with opportunity! How amazingly fortunate we are to be living here in the United States with so many freedoms to create our lives.
Here are some other actions that will help:
Limit your exposure to the media and the “bad” news
Add some daily inspiring messages to your life.
Make a list of your 5 closest friends-do they reflect and support your dreams?
Find one or two new friends to hang out with some more that are inspiring
Buddy with someone who is as inspiring and committed as you want to be and become accountability partners
Form or join a mastermind group and meet regularly to support each other
Begin and end each day counting your blessings!
Put yourself in a place this year where you get the support and encouragement you need to stay focused, aligned and productive.
For 2010, take in less negative input and find the good every day and I promise you it would feel better. It may sound simple, but the best actions usually are. And, it is much easier if the people around you are aligned with the same thinking!
Monday, January 25, 2010
2010 Real Estate Forecast
CANADA’S REAL ESTATE MARKET EXPECTED TO CONTINUE STRONG GAINS INTO THE FIRST HALF OF 2010
Demand and supply finding balance in the second half of the year
TORONTO, January 7, 2010 – Canada’s residential real estate market is forecast to remain unusually strong through the first half of 2010 as economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke demand, according to today’s Royal LePage House Price Survey and Market Survey Forecast. As confidence in the recovery builds in early 2010, increases in average house price levels and overall market activity are expected to continue. The gradual erosion of affordability driven by higher house prices and the expected late-year modest upward movement of interest rates, together with an improvement in listings supply as confidence improves, are expected to bring the market back into balance in the second half of the year, when home price increases are expected to moderate.
“The Canadian real estate market enters 2010 with considerable momentum from a unusually strong finish to the previous year, said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs. This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year. Improving supply as the year unfolds and easing demand as the cost of home ownership rises should moderate home price increases in the second half of 2010.”
In contrast to the difficult months during the worst of the recession, house prices appreciated during the later part of 2009, with fourth quarter price averages surpassing averages from the fourth quarter 2008. The average price of detached bungalows rose to $315,055 (up 6.0%), the price of standard two-storey homes rose to $353,026 (up 5.2%), and the price of a standard condominium rose to $205, 756 (up 6.4%). The first two quarters of 2009 saw significant year-over-year price declines across the housing types surveyed and the third quarter provided the first signs saw a strong rebound in Canadian home values.
Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C. Vancouver in particular experienced a robust quarter, with home prices rising across all housing types surveyed.
“No other sector of the economy has been as highly affected by economic stimulus as housing,” commented Soper. “As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property. Predictably, the regions benefiting most from this renewed interest in home ownership are those with lower average house prices and strong economic confidence, such as Winnipeg and parts of Atlantic Canada.”
Soper added, “Our forecast is built upon an expectation that interest rates will ease upward before the year’s end, which should have a dampening effect on demand, allowing it to come into balance with the supply of resale homes on the market. Further, we expect to see an increasing number of homes listed for sale as the year progresses – as Canadians regain confidence in the economy, they should be more willing to enter into a large financial transaction such as the sale of a home.”
REGIONAL MARKET SUMMARIES
Halifax saw varied gains across all surveyed housing types in comparison to fourth quarter 2008. Notably, more affordable homes posted the highest price increases due to the influx of workers returning from Western Canada.
Montreal saw strong gains this quarter as year-over-year price levels rose across all three housing types surveyed. Recent increases in demand have resulted in lower than normal inventory levels. Inventory levels are expected in increase in 2010. Continued demand is expected to result in moderate price levels.
House price levels in Ottawa are moderately higher this quarter compared to fourth quarter 2008 across all housing types surveyed. Fourth quarter sales activity did not slow as expected, and the demand has resulted in higher incidences of sellers receiving multiple offers, an unusual occurrence in end of year activity for this region. While inventory levels are low and there is competition among home buyers, this may abate as the government eases economic stimulus in 2010.
The Toronto market saw year-over-year price increases across the housing types surveyed in the fourth quarter. Of particular interest is the increase in sales of higher-priced units, which were hit hard by the recession over the previous 12 months. There was a surge of first-time buyers active in the market last year, depleting the inventory of entry-level units. They are expected to be joined by move-up, executive, and luxury buyers in the coming year, resulting in additional price appreciation.
Winnipeg saw some of Canada’s largest home price increases this quarter. More than one third of homes sold in the region went for above their asking price driven largely by first time buyer activity. This strong growth is expected to continue well into 2010.
Inventory levels in Regina are low, as much as thirty per cent lower than expected for this time of year; this situation should be corrected in the spring of 2010. House prices should continue to increase into 2010, driven by labour force growth in the construction industry.
Price levels in Calgary remain constant as the market is correcting from the record growth seen in the middle of the previous decade. Inventory levels are one quarter the levels seen in 2008, and the reduction in choice has delayed purchases. Activity and price levels are expected to increase modestly in 2010.
House price levels in Edmonton are also still correcting from the 2005 to 2007 boom. Low inventory levels have provided some price support, and activity is expected to increase in the spring of 2010.
Vancouver saw significant gains in price levels, with average increases of approximately ten per cent across the housing types surveyed. Inventory levels are beginning to decrease, and there has been an increase in sales involving multiple offers. Sales activity may drop off due to the city’s focus on the Olympics in the first quarter, but the market is expected to be robust for the remainder of the year.
Royal LePage’s quarterly House Price Survey (Q4 2009) shows the annual change of prices for key housing segments in select national markets. Click here to view the chart (.PDF).
The Royal LePage Survey of Canadian House Prices is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the fourth quarter. A printable version of the fourth quarter 2009 survey will be available online on February 5th, 2010.
Housing values in the Royal LePage Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. Historical data is available for some areas back to the early 1970s.
About Royal LePageRoyal LePage is Canada’s leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage believes in the importance of giving back to the community and is the only Canadian real estate company to have its own charitable foundation. The Shelter Foundation is dedicated exclusively to funding women’s shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol “BRE.UN.”
For more information visit www.royallepage.ca.
For further information, please contact:
Tammy GilmerDirector, Public Relations and National CommunicationsRoyal LePage Real Estate Services416-510-5783
Demand and supply finding balance in the second half of the year
TORONTO, January 7, 2010 – Canada’s residential real estate market is forecast to remain unusually strong through the first half of 2010 as economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke demand, according to today’s Royal LePage House Price Survey and Market Survey Forecast. As confidence in the recovery builds in early 2010, increases in average house price levels and overall market activity are expected to continue. The gradual erosion of affordability driven by higher house prices and the expected late-year modest upward movement of interest rates, together with an improvement in listings supply as confidence improves, are expected to bring the market back into balance in the second half of the year, when home price increases are expected to moderate.
“The Canadian real estate market enters 2010 with considerable momentum from a unusually strong finish to the previous year, said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs. This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year. Improving supply as the year unfolds and easing demand as the cost of home ownership rises should moderate home price increases in the second half of 2010.”
In contrast to the difficult months during the worst of the recession, house prices appreciated during the later part of 2009, with fourth quarter price averages surpassing averages from the fourth quarter 2008. The average price of detached bungalows rose to $315,055 (up 6.0%), the price of standard two-storey homes rose to $353,026 (up 5.2%), and the price of a standard condominium rose to $205, 756 (up 6.4%). The first two quarters of 2009 saw significant year-over-year price declines across the housing types surveyed and the third quarter provided the first signs saw a strong rebound in Canadian home values.
Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C. Vancouver in particular experienced a robust quarter, with home prices rising across all housing types surveyed.
“No other sector of the economy has been as highly affected by economic stimulus as housing,” commented Soper. “As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property. Predictably, the regions benefiting most from this renewed interest in home ownership are those with lower average house prices and strong economic confidence, such as Winnipeg and parts of Atlantic Canada.”
Soper added, “Our forecast is built upon an expectation that interest rates will ease upward before the year’s end, which should have a dampening effect on demand, allowing it to come into balance with the supply of resale homes on the market. Further, we expect to see an increasing number of homes listed for sale as the year progresses – as Canadians regain confidence in the economy, they should be more willing to enter into a large financial transaction such as the sale of a home.”
REGIONAL MARKET SUMMARIES
Halifax saw varied gains across all surveyed housing types in comparison to fourth quarter 2008. Notably, more affordable homes posted the highest price increases due to the influx of workers returning from Western Canada.
Montreal saw strong gains this quarter as year-over-year price levels rose across all three housing types surveyed. Recent increases in demand have resulted in lower than normal inventory levels. Inventory levels are expected in increase in 2010. Continued demand is expected to result in moderate price levels.
House price levels in Ottawa are moderately higher this quarter compared to fourth quarter 2008 across all housing types surveyed. Fourth quarter sales activity did not slow as expected, and the demand has resulted in higher incidences of sellers receiving multiple offers, an unusual occurrence in end of year activity for this region. While inventory levels are low and there is competition among home buyers, this may abate as the government eases economic stimulus in 2010.
The Toronto market saw year-over-year price increases across the housing types surveyed in the fourth quarter. Of particular interest is the increase in sales of higher-priced units, which were hit hard by the recession over the previous 12 months. There was a surge of first-time buyers active in the market last year, depleting the inventory of entry-level units. They are expected to be joined by move-up, executive, and luxury buyers in the coming year, resulting in additional price appreciation.
Winnipeg saw some of Canada’s largest home price increases this quarter. More than one third of homes sold in the region went for above their asking price driven largely by first time buyer activity. This strong growth is expected to continue well into 2010.
Inventory levels in Regina are low, as much as thirty per cent lower than expected for this time of year; this situation should be corrected in the spring of 2010. House prices should continue to increase into 2010, driven by labour force growth in the construction industry.
Price levels in Calgary remain constant as the market is correcting from the record growth seen in the middle of the previous decade. Inventory levels are one quarter the levels seen in 2008, and the reduction in choice has delayed purchases. Activity and price levels are expected to increase modestly in 2010.
House price levels in Edmonton are also still correcting from the 2005 to 2007 boom. Low inventory levels have provided some price support, and activity is expected to increase in the spring of 2010.
Vancouver saw significant gains in price levels, with average increases of approximately ten per cent across the housing types surveyed. Inventory levels are beginning to decrease, and there has been an increase in sales involving multiple offers. Sales activity may drop off due to the city’s focus on the Olympics in the first quarter, but the market is expected to be robust for the remainder of the year.
Royal LePage’s quarterly House Price Survey (Q4 2009) shows the annual change of prices for key housing segments in select national markets. Click here to view the chart (.PDF).
The Royal LePage Survey of Canadian House Prices is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca. Current figures will be updated following the complete tabulation of the data for the fourth quarter. A printable version of the fourth quarter 2009 survey will be available online on February 5th, 2010.
Housing values in the Royal LePage Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. Historical data is available for some areas back to the early 1970s.
About Royal LePageRoyal LePage is Canada’s leading provider of franchise services to residential real estate brokerages, with a network of nearly 14,000 real estate professionals in over 600 locations across Canada. Royal LePage believes in the importance of giving back to the community and is the only Canadian real estate company to have its own charitable foundation. The Shelter Foundation is dedicated exclusively to funding women’s shelters and violence prevention and education programs. Royal LePage is managed by Brookfield Real Estate Services, and is part of a brand family that includes Royal LePage, Johnston and Daniel, and La Capitale Real Estate Network. An affiliated company, Brookfield Real Estate Services Fund, is a TSX listed income trust, trading under the symbol “BRE.UN.”
For more information visit www.royallepage.ca.
For further information, please contact:
Tammy GilmerDirector, Public Relations and National CommunicationsRoyal LePage Real Estate Services416-510-5783
Sunday, January 24, 2010
Olympic Winter Games in Vancouver
2010 Winter Olympics
XXI Olympic Winter Games
The 2010 Winter Olympics logo,named Ilanaaq the Inukshuk.
Host city
Vancouver, BC, Canada
Motto
With glowing hearts/Des plus brillants exploits[1]
Nations participating
80+ (projected)[2]
Athletes participating
5,500 (projected)[2]
Events
86 in 7 sports
Opening ceremony
February 12
Closing ceremony
February 28
Stadium
BC Place Stadium
The 2010 Winter Olympics, officially known as the XXI Olympic Winter Games or the 21st Winter Olympics, will be held on February 12–28, 2010, in Vancouver, British Columbia, Canada, with some events held in the resort town of Whistler and in Richmond, a Vancouver suburb. Both the Olympic and Paralympic Games are being organized by the Vancouver Organizing Committee (VANOC). The 2010 Winter Olympics will be the third Olympics hosted by Canada, and the first by the province of British Columbia. Previously, Canada was home to the 1976 Summer Olympics in Montreal, Quebec and the 1988 Winter Olympics in Calgary, Alberta.
Following Olympic tradition, then Vancouver mayor Sam Sullivan received the Olympic flag during the closing ceremony of the 2006 Winter Olympics in Turin, Italy. The flag was raised on February 28, 2006, in a special ceremony, and will be on display at Vancouver City Hall until the Olympic opening ceremony. The event will be officially opened by Governor General Michaëlle Jean.[3]
XXI Olympic Winter Games
The 2010 Winter Olympics logo,named Ilanaaq the Inukshuk.
Host city
Vancouver, BC, Canada
Motto
With glowing hearts/Des plus brillants exploits[1]
Nations participating
80+ (projected)[2]
Athletes participating
5,500 (projected)[2]
Events
86 in 7 sports
Opening ceremony
February 12
Closing ceremony
February 28
Stadium
BC Place Stadium
The 2010 Winter Olympics, officially known as the XXI Olympic Winter Games or the 21st Winter Olympics, will be held on February 12–28, 2010, in Vancouver, British Columbia, Canada, with some events held in the resort town of Whistler and in Richmond, a Vancouver suburb. Both the Olympic and Paralympic Games are being organized by the Vancouver Organizing Committee (VANOC). The 2010 Winter Olympics will be the third Olympics hosted by Canada, and the first by the province of British Columbia. Previously, Canada was home to the 1976 Summer Olympics in Montreal, Quebec and the 1988 Winter Olympics in Calgary, Alberta.
Following Olympic tradition, then Vancouver mayor Sam Sullivan received the Olympic flag during the closing ceremony of the 2006 Winter Olympics in Turin, Italy. The flag was raised on February 28, 2006, in a special ceremony, and will be on display at Vancouver City Hall until the Olympic opening ceremony. The event will be officially opened by Governor General Michaëlle Jean.[3]
Please check: http://en.wikipedia.org/wiki/2010_Winter_Olympics
Saturday, January 16, 2010
Jump Start your Real Estate Career
My dream came true!!! I have my very own first ebook and im selling it online with 24 cds of complete new real estate trends to make you the next top producer.If you are new to the business this is a must to own 'coz you can beat the veterans with your new knowledge and easy to practice marketing. And if you have been in the business for a decade, you must own the cds to update you with the newest trends in real estate marketing.
Please check:
http://www.optimumsuccess.us/
Writing an ebook is easy especially if you know the topic that you want to write. This is my second internet product. The third one is on the making now and hopefully will be online before the end of the month. The Optimum Success website took me 4 straight days to make with all the paypal link and cd downloads that i organized. Now i can relate to those internet marketers who are multi-millionaires now. They said it takes months or even a year before the fun begins--when the money is pouring and it never stops. I am challenge and that is why i made some products online and see that it works. I will be posting more updates about this experience.
Back to Real Estate...
To your success,
G.Brewster
Thursday, January 14, 2010
Recession? Where?
The number of U.S. foreclosures hit a record-high 2.8 million properties in 2009, according to RealtyTrac, a 21 per cent jump from 2008. Foreclosures will continue in 2010 due to an unemployment rate of over 10 per cent and wage cuts.
I was recently in Chicago and spent my holidays with my relatives. From my eye point of view, recession doesn't even exist at all! My nephew who is in his mid 30's owns 3 properties (1 bungalow, a brandnew mansion and a condo) and drives a SUV Mercedez Benz plus another car. He started his own business at the peak of recession in States. His business is very successful and he is helping a lot of Health Industries Professions to get employment.
While he was driving us on his Benz around downtown Chicago, he told us that there was no recession and the media was very exagerated. He said we can listen to news and belive them or not. Of course if you believe them, you lost your power of hope and dreams. As self-development fanatic, i was listening and observing what he was saying. He is a very positive person, smart and follows his instinct. He doesn't allow the environment dictates him and this is why he is successful ni life. I just heard his wife just gave birth to his second child. As you all know, success is from the inside out. Abraham Hicks from The Law of attraction always tell us that we tell a story of what we want to happen and not what it is. We do create our own reality!!!!
While Vancouver is waiting for the Winter Olympic to happen, I'm pre-occupied building my real estate, self employed development internet online marketing that will generate thousands of dollars. In my own world, recession doesn't exist in States or Canada. I chose too!!!!! I have evidence! I saw people shop before and after Christmas in Chicago. The grocery stores and shopping centres were busy everyday. We chose what we want to focus. While the rest listen to news,the others are taking advantage of the economy. Two of my nieces in Chicago are buying Real Estates soon. Another friends of them are looking to buy too. I get calls from investors here--they are buying hotels and residential properties.
Opportunities are all over. Acres of Diamonds (Russell Conwell) are inside us. We just have to reach them!
Happy New Year!
Best Regards,
Grace Brewster
www.gracebrewster.com
I was recently in Chicago and spent my holidays with my relatives. From my eye point of view, recession doesn't even exist at all! My nephew who is in his mid 30's owns 3 properties (1 bungalow, a brandnew mansion and a condo) and drives a SUV Mercedez Benz plus another car. He started his own business at the peak of recession in States. His business is very successful and he is helping a lot of Health Industries Professions to get employment.
While he was driving us on his Benz around downtown Chicago, he told us that there was no recession and the media was very exagerated. He said we can listen to news and belive them or not. Of course if you believe them, you lost your power of hope and dreams. As self-development fanatic, i was listening and observing what he was saying. He is a very positive person, smart and follows his instinct. He doesn't allow the environment dictates him and this is why he is successful ni life. I just heard his wife just gave birth to his second child. As you all know, success is from the inside out. Abraham Hicks from The Law of attraction always tell us that we tell a story of what we want to happen and not what it is. We do create our own reality!!!!
While Vancouver is waiting for the Winter Olympic to happen, I'm pre-occupied building my real estate, self employed development internet online marketing that will generate thousands of dollars. In my own world, recession doesn't exist in States or Canada. I chose too!!!!! I have evidence! I saw people shop before and after Christmas in Chicago. The grocery stores and shopping centres were busy everyday. We chose what we want to focus. While the rest listen to news,the others are taking advantage of the economy. Two of my nieces in Chicago are buying Real Estates soon. Another friends of them are looking to buy too. I get calls from investors here--they are buying hotels and residential properties.
Opportunities are all over. Acres of Diamonds (Russell Conwell) are inside us. We just have to reach them!
Happy New Year!
Best Regards,
Grace Brewster
www.gracebrewster.com
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