U.S. condos starts up
Groundbreaking on American homes hits two-year peak, building permits up for first time in five months.
Construction of new homes in the United States posted the biggest increase in more than two years in April. The growth was driven by a big jump in multi-unit and condominium construction but groundbreaking on single-family homes fell to a 17-year low.
The Commerce Department said yesterday that housing construction rose by 8.2 per cent to a seasonally adjusted annual rate of 1.03 million units. But analysts predicted the surprising rebound in April would be temporary given the headwinds builders are still confronting, from slumping sales to soaring home foreclosures.
"It is definitely too early to uncork the champagne on the long and winding road to more healthy housing-market conditions," said Brian Bethune, an economist at Global Insight. He said he did not expect housing activity to stabilize until the end of this year.
The prolonged slump in housing has been a major drag on the overall economy, raising worries that the country is in danger of falling into a recession.
A separate report yesterday showed that consumer confidence as measured by the University of Michigan/Reuters survey fell to a 28-year low of 59.5 in early May, down from 62.6 in April.
The drop was blamed in part on rising concerns about higher gas and food prices.
Strength in housing construction in April came entirely from a huge increase in apartment construction, which can be extremely volatile from month to month. Building of apartments, defined as two or more units, jumped by 36 per cent. The larger single-family sector dropped by 1.7 per cent to an annual rate of 692,000 units, the 12th consecutive monthly decline.
Applications for building permits, considered a good sign of future activity, also recorded an increase in April, rising by 4.9 per cent to 978,000 units. It was the first gain in permits in five months.
But economists believe housing construction will remain under pressure until builders have more success in reducing a huge backlog of unsold homes.
That effort is being made more difficult by a record wave of foreclosures as millions of borrowers lose their homes because they cannot keep up with escalating payments.
Even with the improvement, housing construction nationwide was 30.6 per cent below the level of activity a year ago.
May 18, 2008 in World View [of real estate] | Permalink | Comments (1) | TrackBack
Canada's real estate market trends
Home Prices Decline for the First Time in Seven Years According to Scotia Economics
After many false calls, there is now convincing evidence that Canada's housing market has come off the boil, according to the latest Real Estate Trends released today by Scotia Economics. Home resales, having fallen for four consecutive months, are running about 15 per cent below last summer's historic peak. Average annual home price appreciation has eased back into the mid single digits, as overall market conditions come into better balance. Adjusted for inflation, the average resale home price in Canada registered its first quarterly decline in seven years in the first quarter of 2008.
According to the report, cracks are appearing on the new home front as well. While housing starts in early 2008 are essentially tracking last year's elevated levels, demand for new residential building permits has fallen sharply. Price increases for new homes are moderating, while inventories of unsold new homes are trending higher.
"We expect overall sales volumes in 2008 to total about 15 per cent below last year's record levels, and home prices to increase on average by about five per cent," said Adrienne Warren, Senior Economist, Scotia Economics. "Price gains should slow further in 2009 with the return of a balanced market for the first time in a decade. Meanwhile, housing starts are projected to gradually moderate, returning toward underlying annual household formation levels of around 180,000 by the end of the decade, from the current 225,000 unit range."
The report also states that the cooling in overall activity is most notable in many of Canada's hottest urban housing markets in recent years, including Calgary and Edmonton. Both centres have officially moved into buyers' territory as soaring prices weaken demand and fuel new listings. More generally, however, economic conditions continue to favour the resource-rich markets in the West over manufacturing-dominated centres in Central Canada. Regina and Saskatoon are currently in the strongest sellers' position nationally, supported by good affordability, rising population inflows and tight supply.
Risk of a major correction still low
According to the report, Canada's recent record of home price appreciation, averaging an annualized 10 per cent from 2002 to 2007, was unsustainable, and a return to more historical norms is a welcome development. The faster and longer home prices climb, the greater the risk of an eventual price correction. Canada's last two major housing booms of the 1970s and 1980s were both followed by some degree of real price stagnation or decline, an essential ingredient to restoring affordability and generating renewed pent-up housing demand.
Ms. Warren cites a number of reasons why a major correction is not in the cards, "Home prices in Canada are not substantially overvalued. Our long-term housing price model puts average home prices in 2007 at about eight per cent above their long-term trend, compared with a premium of 12 per cent and 18 per cent, respectively, at the 1976 and 1989 housing cycle peaks. Recent International Monetary Fund (IMF) estimates placed Canada at the bottom rungs of international home price overvaluation."
Canada's real estate market is not overbuilt. While inventories of unsold homes are trending higher, the number of unabsorbed units, including condominiums, remains well below prior cyclical peaks in most major centres. Tighter lending guidelines and high construction costs have likely contributed to a more cautious approach among builders.
Households, for their part, are not overleveraged. Home equity as a share of real estate assets is near record highs, with price appreciation outpacing the rise in mortgage obligations. Mortgage carrying costs as a share of disposable incomes are historically low despite rising home prices.
Overall mortgage quality is still sound. Canadian lenders have maintained conservative loan qualifying criteria in recent years even while introducing a range of new products, including interest-only mortgages, no downpayment mortgages, and extended amortization of up to 40 years. Canada does not have ultra-low teaser rate mortgages that have contributed heavily to U.S. defaults as they reset. Adjustable-rate mortgages, sub-prime lending, borrowing against home equity, and insured investor mortgages all account for a much smaller share of the Canadian mortgage market than in the United States.
"At the end of the day, we predict a soft landing for the Canadian housing market, with somewhat lower sales and construction, and a period of relatively flat inflation-adjusted home prices," added Ms. Warren. "While underlying domestic housing fundamentals remain healthy, a major risk to the outlook would be a deeper and more protracted downturn in the U.S. economy, with more serious repercussions for domestic output, employment and income growth."
See the full Real Estate Trends report »
May 15, 2008 in Canadian Market Forecast | Permalink | Comments (6) | TrackBack
MLS listings reach record high
Surge in Real Estate Listings Slows Home Price Increases
A surge in real estate listings in Canada's major markets slowed down the pace of price increases in April, according to a report released Wednesday by the Canadian Real Estate Association (CREA). The number of new listings of homes for sale on the Multiple Listing Service (MLS) reached its highest level ever in April, the CREA report said, with a seasonally adjusted 52,775 units coming on to the market - an increase of 1.8% from the previous month. Unadjusted new listings were up 17.7% from April 2007.
Meanwhile, the number of units sold in April was 34,781, down 6.1% from the same month last year. The average selling price was up 3.2% to $334,293 from $323,936 in April 2007. This is the smallest year-over-year price increase in over six years, CREA reported.
The increase in listings "means buyers face less competition in their search for a home," said CREA President Calvin Lindberg.
The sales drop and the modest price gain are well down from years of double-digit increases and are further confirmation that the boom days are over, said BMO deputy chief economist Doug Porter. No city in the country has reported a price decline from year-ago levels over the first four months of the year, Porter noted, "so the slowdown is still far from mimicking the U.S. experience. However, we would point out that new listings have climbed more than 8% this year, even as sales have slid."
CREA may term that as a more balanced market, Porter said. "That's a polite way of saying: If you're looking for double-digit price gains, dream on."
CREA said the new record in listings resulted largely from activity in Toronto and Saskatoon. The rise in new listings in these markets more than offset a decline in Edmonton and Calgary, where new listings retreated from record levels reached in March, the association said.
Seasonally adjusted sales activity edged up 0.8% month-over-month to 27,039 units in April, with stronger markets in Quebec City, Toronto, Winnipeg, Halifax-Dartmouth, Hamilton-Burlington, St. Catharines and Newfoundland & Labrador offsetting slower markets in Vancouver, London & St. Thomas, Calgary and Victoria.
"An increase in listings is resulting in a more balanced resale housing market in Vancouver, Calgary, Toronto and Montreal, the four most active of Canada's major markets," said CREA chief economist Gregory Klump. "New listings are forecast to rise further as sales activity continues retreating from the peak last year, resulting in an increasingly balanced resale housing market and smaller home price increases."
May 14, 2008 in Canadian Real Estate Market | Permalink | Comments (3) | TrackBack
Be the belle of the block
Curb appeal is crucial in Toronto's changing market
Never mind the vernal equinox or visions of blooming tulips and budding leaves. May in Toronto has to be the harshest month when it comes to curb appeal, whether we're selling our homes or simply living in them. Gone are the snows of winter leaving our homes wearing a drab overcoat of a winter's worth of dust and grime. Not to mention those green doors.
In times past, it didn't matter if your house had a pink front door, it sold for more than the asking price. Now, buyers are being very picky. If it's not your home they buy, it will be one of the other 124 on the market that are just like yours — the same square footage — but $10,000. lower in price.
A year ago, it wouldn't have mattered that buyers saw your green front door as tired and dated — but it does now.
Last year, there was always a limited inventory available. This year, the total inventory is up, which means more selection for buyers. It is important that sellers understand that they're in a much different marketplace. Buyers can now take the time to find their dream home, instead of having to snatch up the first available place in their price range before someone else beats them to it.
So, sellers need to present their home in the best possible light ... and they need to price their home accordingly, in keeping with local market conditions.
Putting on a Fresh Face
Curb appeal isn't going to sell your property if the price, location or amenities aren't right for the buyer, but it can help you achieve both a faster selling time and a better price in any market. When the buyers drive up and see grass a foot high, they assume the whole house isn't well maintained.
By creating curb appeal, you create an emotional connection before the buyer even enters the home. Try to create a message about what you want the buyer to know about your house and your neighbourhood.
For example: paint the trim and the door if they're in need of it; replace the mailbox, lighting and hardware such as door handles; clean your walk and deck; switch on exterior house and garage lights; ensure keys work smoothly in locks; add fresh mulch to the garden beds; and re-edge the beds and sidewalks.
Going Beyond Cosmetics
Some very expensive homes have very basic things wrong, such as doorknobs that are loose or not working properly. It might sound cosmetic, but the cosmetics are important. If for example, you don't keep up with painting or staining your window trim, you'll be needing to replace those windows soon.
It's also important to ensure your steps are level, your sidewalk is in good shape and your trees or bushes are pruned. Those are little things that make people feel more comfortable when you're coming into a house. If everything is clean and organized, it appears that the owners have looked after the house.
As for the green doors, taking the usual television show advice to paint your door red to create punch could be a mistake. If you have green trim around a red door, it just doesn't work.
So figure out a great colour that compliments the hues already on your home including the trim -- maybe it's green.
See the Curb Appeals blog »
May 14, 2008 in Toronto Curb Appeal | Permalink | Comments (0) | TrackBack
Improving Toronto’s public spaces
thinkToronto
Spacing magazine invites people — 35 years old or younger — with creative ideas on how to improve Toronto’s public space to take part in thinkToronto, an urban design ideas competition that will help celebrate the magazine’s 5th anniversary in December 2008. Architects, urban planners, landscape architects, designers, artists, students, and the urban curious are all encouraged to submit their plans to tweak, improve, or redesign streetscape elements and specific areas of Toronto.
thinkToronto seeks ideas from the next generation of city builders who want to challenge how we view Toronto’s public realm. The competition gives participants a platform to explore and experiment with Toronto’s urban landscape and generate a dialogue among Torontonians about creative and sustainable solutions in our shared common spaces.
See the thinkToronto website »
May 13, 2008 in Toronto Real Estate Trends | Permalink | Comments (0) | TrackBack
Preparing for your Home Search
Your Needs and Wants
A good place to start your search for a new home is to prepare a detailed 'wish list' -- and then make a comparison of your wants or wishes and your needs or what you must have. For example:
Needs
- near schools
- four bedrooms
- attached garage
- close to bus route
- large garden
Wants
- swimming pool
- horse facilities
- three car garage
- view of the lake
- south-facing yard
Include the type of housing - detached home or condominium, bungalow or two-story, and size - which best suits your needs. Consider location, transportation or commuting time, and new or resale.If you are handy with tools or a paint brush, you might consider a home with a great floor plan even though it’s in need of some repairs or updating. Otherwise, a home in a newer community might be more suitable.Make it a family decision—include the children and your spouse. Or, if you're buying on your own, talk to friends about their home buying experience.
Make the list
Record a list of your needs and wants. Do you need an extra bathroom, a garage, a fenced backyard, or lower utility bills? Do you want a fireplace, a short drive to work, or maybe minimal yard work? Once your list is complete, review it and decide what is most important to your lifestyle. Decide which items are “musts” and which you are willing to give up.
Location
Deciding where you want to live may be the single most important factor in choosing a home. Location affects your day-to-day living and is one of the most significant influences on value. Your choice of location may be limited somewhat by the price you can afford. Even so, make sure you consider such things as:
- Distance to work, schools, shopping, and entertainment,
- Proposed changes in land use such as commercial shopping centres and new roads, and potential problems such as noise from a nearby airport or roadway.
Type of home and lot
A single-family detached home is attractive to many people because it typically provides more living space and land area than other types of living units. Typically the detached structure permits you greater freedom (less restrictions) on remodeling, expanding, painting, and altering the appearances of the structure. On the other hand, a condominium may be a more appropriate choice for you, with an emphasis on maintenance-free living.
Size and style
Consider size and style. You may already have in mind a contemporary home with a sun deck or a two-storey Victorian-style with a cozy study. Or maybe you won't know what you want or like until you see it. Whatever the case, your realtor should listen to your preferences and help find the right home for you.
May 13, 2008 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack
Monster Open House for Toronto
Doors Open Toronto
The City of Toronto is presenting its the 9th annual Doors Open Toronto on the weekend of May 24 and 25 when up to 150 buildings of architectural, historic, cultural and social significance open their doors to the public for a city-wide celebration.
The program allows visitors free access to properties that are either not usually open to the public, or would normally charge an entrance fee. Many locations have organized guided tours, displays and activities to enrich the visitor experience.
From heritage landmarks to modern structures, hidden gems, green roofs, places of worship, halls of learning, boardrooms, bedrooms, breweries, lighthouses, mansions, museums, theatres, national historic sites, centres of rail travel, cemeteries, factories, banking halls, architects' offices and more.
Doors Open Toronto is intended to help people get to know the city, whether they've lived in Toronto all their lives or visiting for the first time. You can see Toronto like you've never seen it before!
For more informatiom visit the Doors Open Toronto website »
May 11, 2008 in Toronto Landmarks | Permalink | Comments (0) | TrackBack
Toronto Commercial Real Estate
Over 1,000,000 Square Feet Leased in April
Toronto Real Estate Board Members reported 1,108,430 square feet of space leased through the TorontoMLS system, up four per cent over April of 2007, Commercial Council Chair Garry Lander announced today. "This figure is also up 19 per cent over the March figure of 933,299, and in fact makes April’s the best monthly performance of 2008."
In April, the price for Industrial space (all size categories) declined six per cent to $5.43 sfn from last April's figure of $5.76 sfn. Commercial space (all size categories) averaged $14.91 sfn, down nine per cent from last April's $16.41 sfn.
Sales Market Highlights
In April, Toronto Real Estate Board Members recorded 58 sales of Industrial/Commercial Properties. Of these, 39 were industrial properties of all size categories, which transacted for an average of $87.04 per square foot. This compares to a figure of $101.59 per square foot from non-MLS® sources, which reported the sale of a number of unusually expensive Industrial properties in April.
See TREB Commercial real estate report:
May 8, 2008 in Toronto Real Estate Update | Permalink | Comments (4) | TrackBack
Tim Hortons - Corporate Greed
This blog is usually about real estate but today I have to comment on the most egregious example of corporate greed that I have ever heard about.
The Canadian Press
LONDON, Ont.–Giving a free Timbit to a baby has cost a single mother of four her job. Nicole Lilliman, 27, was fired yesterday from her Tim Hortons job for giving one of the 16-cent blobs of fried dough to a tot. "I have been fired for giving a baby a Timbit," Lilliman said yesterday.
"It was just out of my heart – she was pointing and going `ah, ah...' I should have gone to my purse and got the change, but it was busy." Lilliman, who has worked at the store for three years, said she thought little of the incident since Timbits are often doled out to dogs and children. She said the baby was about 11 months old, and she gave her the treat to quiet her, since her mom – a Tims' regular – had been ``having a bad day." "I could see (the dismissal) if it was a sandwich or something," she said. "But it was a Timbit."
Three managers greeted her yesterday, saying she had been caught on video giving free food to a child. "They said, `Remember, Monday you gave out a free Timbit,' " she said. "I had to think, then I was like, `Oh yeah,' and I smiled because I thought I'd get a warning." Instead, she was fired for theft.
Giving food away is against the rules, said Tim Hortons district manager Nicole Mitchell.
The Timbits given to pets, Mitchell added, are usually "day-old and recycled."
I didn't know that you only gave stale Timbits to babies — I guess if they can't talk, they can't complain.
Postscript:
Tim Hortons responds to firing of staff member
TORONTO, May 8 /CNW/ - In regards to the recent situation with the termination of a staff member in London, Ontario.
Unfortunately the action of the manager of this location was not appropriate nor grounds for dismissal. With an apology from management Ms. Lilliman has been rehired by the franchisee.
We sincerely apologize to our customers for this unfortunate incident.
For further information: Rachel M. Douglas, Director, Public Affairs, Tim Hortons, (905) 339-6277, douglas_rachel@timhortons.com
May 8, 2008 in World View [of real estate] | Permalink | Comments (8) | TrackBack
Realtors realize more
Real estate fee revenue up 8.1% to10.6 billion
Real estate agents, brokers, appraisers and other real-estate industries reported total operating revenues of $10.6 billion for 2006, an 8.1 per cent increase from 2005. Statistics Canada says high demand for real estate has boosted both sales and prices despite a slight increase in mortgage rates. The agency's New Housing Price Index grew 9.7 per cent in 2006, close to five times the rate of inflation. With a 37 per cent increase in operating revenues, Alberta's real-estate market continued to lead national growth. Manitoba also recorded double-digit annual growth, at 19 per cent. The offices of agents and brokers generated 87 per cent of the country's total real-estate revenue.
Royal LePage profits up 44%
Brookfield Real Estate Services Fund, a major property brokerage services company that operates through the Royal LePage and other brands, reported its first quarter net profits rose to nearly $1.3 million from $912,000 last year as the company benefited from a robust home selling market that is now starting to moderate. The Toronto-based fund said yesterday it earned 13 cents a unit for the three months ended March 31, up 44 per cent from $912,000 or nine cents a unit for the first quarter of 2007. Royalty revenue rose to nearly $8.1 million from $6.9 million as the company expanded its Royal LePage and La Capitale network by more than 14 per cent.
May 7, 2008 in Canadian Real Estate Market | Permalink | Comments (5) | TrackBack
Toronto home prices up, sales down
GTA resales in decline as inventory levels surge
The spring rebound anticipated by realtors in the Toronto area market hasn't happened – at least not yet. Existing-home sales in April were down from the record highs of last year, with 8,762 homes sold, according to the Toronto Real Estate Board in figures released yesterday.
This is the fourth-consecutive month of declining home sales. April was considered a bellwether since it was the first month of good weather after one of the coldest and snowiest winters in recent years. Most analysts had expected pent- up demand to emerge in the spring market as potential homebuyers were hampered by slush and snow in the first quarter of the year. "With affordability the lowest in 17 years, the housing market should continue to cool, despite recent declines in mortgage rates," said Sal Guatieri, senior economist at BMO Nesbitt Burns, in a note yesterday.
Inventory, in the form of new listings, was also up significantly in April.It advanced by 18 per cent to 18,691 as sellers hoped the better weather would bring buyers out. "We're going to have to watch May very closely as well to see if there is a trend," said housing analyst Will Dunning.
However, Dunning said the market was fundamentally healthy and noted it is coming off record highs of 2007. Prices are still appreciating because sales still remain at historically lofty levels, even though they may be sliding. The average Toronto-area price in April almost hit the watershed $400,000 mark at $398,687, up 5 per cent from the same period a year ago. The housing market is coasting on strong job numbers and the wealth generated on the Toronto Stock Exchange over the last few years, said Dunning. "You would need a pretty big shock to consumer confidence to totally derail the market," said Dunning. "Most Canadians so far have reason to feel good about their earnings and employment."
Toronto prices, however, are holding up, with a consensus of analysts forecasting 3 per cent appreciation this year. "We continue to experience a supply and demand situation and to date, it remains a sellers' market," said Toronto Real Estate Board president Maureen O'Neill.
Sales activity was markedly different in the city of Toronto compared with the 905 region, added O'Neill. While Toronto experienced a 10 per cent drop in sales, the 905 market experienced only a 5 per cent fall by comparison. The real estate board is tracking sales in both areas because of a controversial new city of Toronto land transfer tax that took effect this year.
Sources: Toronto Real Estate Board and the Toronto Star.
May 6, 2008 | Permalink | Comments (5) | TrackBack
Toronto Real Estate Board reports:
Sales moderate in April but prices up
April statistics show that 8,762 houses sold in the Greater Toronto Area. “The market continues to experience a supply and demand situation and to-date it remains a sellers market," said TREB President Maureen O’Neill. The GTA market was down 7 per cent from last April’s record 9,452 transactions. However, it is showing signs for a healthy 2008 compared to the diminished activity during the first quarter of 2008.
The sales pace however, did not take place evenly throughout the GTA. With 3,467 transactions in the City of Toronto, sales were down 10 per cent from a year ago. The 905 region was down five per cent from April 2007 sales, with 5,295 homes changing hands.
Prices continued to appreciate last month, to a GTA average of $398,687, up five per cent from last April's $367,968. The average price in the City of Toronto was $446,781, up six per cent from April 2007. The 905 region’s average price of $367,196 increased five per cent from a year ago.
“For more than a decade, real estate has served as the economy’s engine,” said Ms. O’Neill. “It’s encouraging to see that consumers are continuing to put their faith in real estate as an excellent longterm investment.”
Breaking down the total, 3,398 sales were reported in TREB’s 28 West districts and averaged $372,575; 1,531 sales were reported in the 14 Central districts and averaged $539,133; 1,768 sales were reported in the 23 North districts and averaged $429,262; and 2,065 sales were reported in TREB’s 21 East districts and averaged $311,350.
NEIGHBOURHOOD CORNER
Markham
There have been 1,172 sales in Markham (N01, N10, N11) during the first four months of 2008, with an average price of $453,630. The price is up eight per cent from the $417,818 recorded during the same period in 2007.
See full Market Watch report »
May 5, 2008 in Toronto Real Estate Update | Permalink | Comments (3) | TrackBack
Key Real Estate Market Factors
as they effect Canadian housing
Mortgage Rates
Mortgage rates have moved slightly higher over the past year. This rise, in conjunction with higher house prices, has and will continue to push mortgage carrying costs higher. As a result, this will ease housing demand, particularly for first-time buyers.
Employment
A record share of Canadians continue to be employed, moving the economy close to full-employment. Accordingly, job growth should slow to rates that are more in line with overall population growth. Job creation will continue to stimulate housing demand, but not as much as in the previous years.
Income
Rising incomes will continue because of tight labour markets and a strong demand for workers. This should partially offset the negative impact of higher mortgage carrying costs on home ownership demand.
Net Migration
Net migration is expected to remain strong in 2008. Ontario, Quebec, and British Columbia will continue to attract the bulk of the international immigrants. B.C., Alberta and Saskatchewan will attract a large number of inter-provincial migrants from the rest of Canada.
Demographics
Canada’s population is aging, and as a result, a smaller proportion of people are in their child bearing years and thus the birth rate is decreasing. High immigration levels will slow the average aging of the population, however, the rate of increase in the natural population (births - deaths) is slowing. This will eventually lessen the demand for additional housing stock in the longer term.
Consumer Confidence
Consumer confidence, as measured by the Conference Board of Canada, remains positive. Furthermore, strong consumer sentiment is expected to prevail throughout the forecast period. Confident consumers will continue to support demand for home ownership.
Market Inventories
Lower existing home sales, combined with a high level of new listings in 2008, will move the resale market towards more balanced territory. As a result, the rate of growth in the average MLS® price will moderate during 2008, especially in Canada’s western provinces.
Vacancy Rates
Modest rental construction and increased competition from the condo market will be offset by strong rental demand due to high immigration and a rising gap between the cost of homeownership and renting. As a result, vacancy rates across Canada’s metropolitan centres should remain relatively stable, but slightly higher in 2008.
For more information, see CMHC's latest Housing Market Outlook report »
May 4, 2008 in Canadian Market Forecast | Permalink | Comments (5) | TrackBack
Calgary is in a buyer's market
Sellers need to pay attention to the current market
Calgary's MLS listings are taking twice as long to sell over last year, according to figures released by the Calgary Real Estate Board (CREB). Calgary's MLS listings remain elevated for April indicating two things: Calgary is in a buyer's market, and secondly, sellers need to pay attention and price their homes appropriately for today's market and ensure that their homes are well presented to encourage buyers.
Single family Calgary metro new listings added for the month of April totaled 3,377, an increase of 8.9 per cent from April 2007 when new listing added totaled 3,100 and a decrease of 3.3 per cent from last month, when new listings coming to the market were 3,493. Calgary metro condominium new listings added in April 2008 were 1,493, showing an increase of 29 per cent from the 1,157 new condominium listings added in April 2007 and a decrease of 4.4 per cent from last month's condominium listings of 1,561.
Single family Calgary metro sales for the month of April came in at 1,363, showing a decrease of 34.7 per cent from the 2,086 sales in April 2007 and showing a decrease of 3.9 per cent from last month's sales of 1,418. Condominium sales for the month of April were 581, a decrease of 30.8 per cent from the 839 condominium sales recorded in April 2007 and showing a slight increase of 2.8 percent over the 565 condominiums changing hands in March 2008.
"Given the hectic pace of the resale market in the last few years, many buyers are breathing a sigh of relief. There are more listings on the market, which means more choice for the buyers, with more inventory, buyers are taking their time to find the home that is right for them at the price that is right for them. What that means however, for a seller; you now need to pay more attention to how you price your home. The market is no longer bearing the prices that it did a year ago. A professional Realtor who understands what is going on in the market can help the seller with all of these issues in order to more effectively sell a home", said Calgary Real Estate Board President, Ed Jensen.
The median price of a single family Calgary metro home in April 2008 was $420,000 showing a decrease of 2.8 percent over April 2007, when the median price was $432,000 and showing no change from last month when the median price was also $420,000. All Calgary Metro MLS(R) statistics include properties listed and sold only within Calgary's City limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.
The average price of a single family Calgary metro home in April 2008 was $474,564, showing almost no change from last year, up just 0.1 per cent from April 2007, when the average price was $474,250. The average price of a Calgary metro condominium was $312,586, showing a 5.1 per cent decrease from April 2007 when the average price was $329,429. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas.
May 2, 2008 in Location, location, location | Permalink | Comments (1) | TrackBack
Canadian House Price Survey
House prices hold value for Canadians during uncertain year.
House prices have remained a bedrock of value for Canadians over the past year, despite a steady flood of gloomy media headlines about the slowing Canadian economy, the volatility of the world's stock markets, and the United States' housing crash and credit crisis, according to a national survey by Century21 Canada brokers.
The Century21 Canada 2008 Spring National House Price Survey of typical homes in 198 neighbourhoods within 66 cities across Canada shows that prices over the past year have increased in 167 neighbourhoods, remained flat in nine neighbourhoods and declined in 21 neighbourhoods.
Don Lawby, President of Century21 Canada, says the survey results reflect the solid foundations of Canada's housing markets versus the boom-bust excesses of the U.S. housing market. "The Canadian housing market is based on conservative lending practices and regulations, strong banks and Canadians' pride of ownership and diligence at building equity in their homes. These characteristics will sustain our housing market as Canada's economic growth rate slows this year," says Lawby.
"The price collapse in the U.S. housing market, which happened 18 months ago, was based on lending practices and mortgage interest deductibility tax regulations that lured new buyers into mortgages they couldn't sustain. Many existing homeowners took equity out of their homes and spent it on vacations, new cars and flat-screen televisions."
"Over the past several weeks, I've visited every region of Canada and spoken with hundreds of realtors. Housing sales volumes are easing in most communities as the economic growth rate slows, but prices in the spring of 2008 are strong and stable nearly everywhere across the country," says Lawby.
The Century21 Canada 2008 Spring National House Price Survey reflects the price of a typical home in communities across Canada. A "typical home" is the type of home that occurs most frequently in any given neighbourhood. The homes selected for inclusion in the survey are based on the knowledge and experience of Century21 brokers in each of the communities.
The Century21 Canada 2008 Spring National House Price Survey found that the largest price increases over the past year occurred in Saskatchewan, where jobs in the booming oil and gas, grain and potash industries are attracting record numbers of new residents. Prices for typical homes have increased over the past year as much as:
- 57 per cent to $330,000 for a modest 1,192-square-foot bungalow with three bedrooms and one bathroom in the Whitmore Park neighbourhood of Regina;
- 49 per cent to $379,000 for a 1,440-square-foot split-level with three bedrooms and two bathrooms in the Avalon neighbourhood of Saskatoon; and
- 48 per cent to $219,900 for a small 974-square-foot bungalow with three bedrooms and two bathrooms on a large lot in remote Prince Albert, a small city 140 kilometres north of Saskatoon known as "the Gateway to the North".
Other strong markets across the country include:
- Winnipeg, where prices in the River Park South, West End and Charleswood neighbourhoods increased 19 per cent, 24 per cent and 34 per cent respectively;
- Lethbridge, where prices in Southgate, Riverstone and Uplands neighbourhoods increased 21 per cent, 21 per cent and 23 per cent;
- Castlegar, where prices in the south, north and rural areas of the city increased 16 per cent, 18 per cent and 18 per cent;
- St. John's, where prices in the east and west parts of the city increased between nine per cent and 19 per cent; and
- Vancouver, where prices in the east, Yaletown, Kitsilano and Marpole increased between five per cent and 19 per cent.
In many communities, local conditions have produced strong, but variable price increases, including:
- Toronto, where a typical bungalow in North York increased six per cent, while a typical condo in North York increased 20 per cent. In Liberty Village, a condo increased 14 per cent, while a bungalow in Scarborough Bluffs increased 11 per cent.
- Montreal, where 11 neighbourhoods surveyed had increases ranging from three per cent for a split-level in Cote St. Luc and 11 per cent for a two-storey in Riviere-des-Prairies.
- Halifax and Dartmouth, where 12 neighbourhoods surveyed had increases ranging from five per cent for a split-level in Dartmouth Eastern Passage and 14 per cent for a two-storey in Halifax West.
- Abbotsford, where prices for similar sized bi-level homes in the central, western and eastern parts of the city increased two per cent, seven per cent and eight per cent respectively.
Softening markets across the country include:
May 1, 2008 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack
