Vancouver, BC – November 15, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province declined 36 per cent to 5,507 units in October compared to the same month last year. On a seasonally adjusted basis, MLS® residential unit sales in the province increased 2 per cent in October from September 2010. The average MLS® residential price climbed 6 per cent to $521,859 in October compared to the same month last year.
“BC home sales have posted moderate gains since the summer months,” said Cameron Muir, BCREA Chief Economist. “Consumer demand was bolstered by double-dip in mortgage interest rates and the associated increase in purchasing power.”
“Total active residential listings in the province have declined 18 per cent since June,” added Muir. “However, the housing market remains tilted in favour of homebuyers.”
Year-to-date, BC residential sales dollar volume declined 2 per cent $32.5 billion, compared to the same period last year. Residential unit sales declined 10 per cent to 64,735 year-to-date, while the average MLS® residential price climbed 9 per cent to $502,353 over the same period.
Copyright BC Real Estate Association. Reprinted with permission.
Tuesday, November 16, 2010
Finding a Perfect Home
Before you begin searching for a home, it’s always helpful to think about your needs both now and in the future. And if you have any questions about the home-buying process or different types of real estate, don’t hesitate to call or e-mail.
Following are some things to consider when you’re deciding which type of home to buy:
• Location. Do you want to live in a city, town or in the countryside? How long will your work commute be? Where will your children attend school and how will they get there? Are you close to amenities?
• Size requirements. Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?
• Special features. Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs? Do you want special features to save energy, enhance indoor air quality and reduce environmental impact?
• Lifestyles and stages. Do you plan to have children? Do you have teenagers who will be moving away soon? Are you close to retirement? Will you need a home that can accommodate different stages of life?
New Versus Resale Homes
When thinking about your ideal home, the first thing you should consider is whether you want a previously-owned home (often called a resale) or a new home.
Some things to consider with a new home include: up-to-date designs that take into account the latest trends, materials and features; you may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures; schools, shopping malls and other services may not be complete for years; and you may have to pay extra if you want to add a fireplace, plant trees and sod or pave your driveway. Make sure you know exactly what’s included in the price of your home.
Some things to consider with a resale home include: easy access to services, since it’s likely established in a neighbourhood with schools, shopping malls and other services; may have extras like fireplaces, a finished basement or swimming pool; and you may need to redecorate, renovate or do major repairs such as replacing the roof, windows and doors.
Deciding Which Type of Home to Buy
There are many types of homes to choose from and each has its advantages and disadvantages. Think about your needs before making a decision, and don’t forget to look beyond the interior walls. The environment surrounding your home can be as important as the environment within.
Following are some different types of homes from which to choose:
Single-Family Detached – A home containing one dwelling unit that stands alone and sits on its own lot, thereby offering a greater degree of privacy.
Semi-Detached – A single-family home that is joined to another one by a common wall. It can offer many of the advantages of a single-family detached home and is usually less expensive to buy and maintain.
Row House or Townhouse – Many similar single-family homes, side-by-side, separated by common walls. They can be freehold, condominiums or rental units. They offer less privacy than a single-family detached home but still provide a separate outdoor space. These homes can cost less to buy and maintain – but they can also be large, luxury units.
Link or Carriage Home – Houses joined by garages or carports, which provide access to the front and back yards. Builders sometimes join basement walls so that link houses appear to be single-family homes on small lots. These houses can be less expensive than single-family detached homes.
Condos/Stratas – A condo/strata is a form of ownership, not a type of construction. Condos/stratas can be high-rise residential buildings, townhouse complexes, individual houses and low-rise residential buildings.
Regardless of the type of home you decide to buy, answers to your questions are just a phone call or e-mail away!
Following are some things to consider when you’re deciding which type of home to buy:
• Location. Do you want to live in a city, town or in the countryside? How long will your work commute be? Where will your children attend school and how will they get there? Are you close to amenities?
• Size requirements. Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?
• Special features. Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs? Do you want special features to save energy, enhance indoor air quality and reduce environmental impact?
• Lifestyles and stages. Do you plan to have children? Do you have teenagers who will be moving away soon? Are you close to retirement? Will you need a home that can accommodate different stages of life?
New Versus Resale Homes
When thinking about your ideal home, the first thing you should consider is whether you want a previously-owned home (often called a resale) or a new home.
Some things to consider with a new home include: up-to-date designs that take into account the latest trends, materials and features; you may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures; schools, shopping malls and other services may not be complete for years; and you may have to pay extra if you want to add a fireplace, plant trees and sod or pave your driveway. Make sure you know exactly what’s included in the price of your home.
Some things to consider with a resale home include: easy access to services, since it’s likely established in a neighbourhood with schools, shopping malls and other services; may have extras like fireplaces, a finished basement or swimming pool; and you may need to redecorate, renovate or do major repairs such as replacing the roof, windows and doors.
Deciding Which Type of Home to Buy
There are many types of homes to choose from and each has its advantages and disadvantages. Think about your needs before making a decision, and don’t forget to look beyond the interior walls. The environment surrounding your home can be as important as the environment within.
Following are some different types of homes from which to choose:
Single-Family Detached – A home containing one dwelling unit that stands alone and sits on its own lot, thereby offering a greater degree of privacy.
Semi-Detached – A single-family home that is joined to another one by a common wall. It can offer many of the advantages of a single-family detached home and is usually less expensive to buy and maintain.
Row House or Townhouse – Many similar single-family homes, side-by-side, separated by common walls. They can be freehold, condominiums or rental units. They offer less privacy than a single-family detached home but still provide a separate outdoor space. These homes can cost less to buy and maintain – but they can also be large, luxury units.
Link or Carriage Home – Houses joined by garages or carports, which provide access to the front and back yards. Builders sometimes join basement walls so that link houses appear to be single-family homes on small lots. These houses can be less expensive than single-family detached homes.
Condos/Stratas – A condo/strata is a form of ownership, not a type of construction. Condos/stratas can be high-rise residential buildings, townhouse complexes, individual houses and low-rise residential buildings.
Regardless of the type of home you decide to buy, answers to your questions are just a phone call or e-mail away!
Moderate Rise in Home Sales Forecast
BCREA Fall Housing Forecast 2010
Vancouver, BC – November 10, 2010. The British Columbia Real Estate Association (BCREA) released its Fall Housing Forecast 2010 today.
BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 12 per cent from 85,028 units in 2009 to 74,950 units this year, before increasing 6 per cent to 79,700 units in 2011.
“Consumers are responding to a double-dip in mortgage interest rates,” said Cameron Muir, BCREA Chief Economist. “While housing demand waned in the province through the spring and summer, the added purchasing power from low borrowing costs combined with gradual improvement in the BC economy has trended home sales higher in recent months.”
“A moderate increase in BC home sales is expected next year coinciding with employment and population growth,” added Muir. “However, the 79,700 unit sales that are forecast for 2011 are well below the ten-year average of 85,500 units.” A record 106,300 MLS® residential sales were recorded in 2005.
The average MLS® residential price is forecast to climb 7 per cent to $498,500 this year and remain relatively unchanged in 2011, albeit declining by 1 per cent to $495,600.
Copyright BCREA reprinted with permission
Vancouver, BC – November 10, 2010. The British Columbia Real Estate Association (BCREA) released its Fall Housing Forecast 2010 today.
BC Multiple Listing Service® (MLS®) residential sales are forecast to decline 12 per cent from 85,028 units in 2009 to 74,950 units this year, before increasing 6 per cent to 79,700 units in 2011.
“Consumers are responding to a double-dip in mortgage interest rates,” said Cameron Muir, BCREA Chief Economist. “While housing demand waned in the province through the spring and summer, the added purchasing power from low borrowing costs combined with gradual improvement in the BC economy has trended home sales higher in recent months.”
“A moderate increase in BC home sales is expected next year coinciding with employment and population growth,” added Muir. “However, the 79,700 unit sales that are forecast for 2011 are well below the ten-year average of 85,500 units.” A record 106,300 MLS® residential sales were recorded in 2005.
The average MLS® residential price is forecast to climb 7 per cent to $498,500 this year and remain relatively unchanged in 2011, albeit declining by 1 per cent to $495,600.
Copyright BCREA reprinted with permission
CREA Ratifies Competition Consent Agreement
St. John’s NL – October 24, 2010 – The President of the Canadian Real Estate Association (CREA), Georges Pahud, today welcomed the decision of delegates to its Special General Meeting to approve CREA’s consent agreement with the Commissioner of Competition regarding the case before the Competition Tribunal.
“We are pleased that after careful consideration and reflection, real estate Boards and Associations from across Canada have endorsed the agreement,” says Pahud.
The agreement was approved by CREA’s Board of Directors and the Commissioner of Competition on September 30th and was in escrow pending today’s vote. It confirms CREA’s commitment to a competitive real estate services market.
The Commissioner and CREA have agreed that its rules as well as those of its members should not deny or discriminate against REALTORS® wishing to offer mere posting services. CREA does not believe that such rules exist today, but if they do, they must be repealed or Boards will lose their license to operate under the MLS® trademarks. Board MLS® Systems remain a member to member service designed to provide accurate and timely information critical to the delivery of professional real estate services to Canadians.
“This 10-year agreement brings a close to a long process of negotiation with the Competition Bureau and will allow CREA and REALTORS® to do what they do best – help people with the biggest financial decision of their lives, buying and selling a home in these challenging economic times,” says Pahud.
CREA believes the agreement reflects both current practices and intent regarding posting to Board MLS® Systems. Buying and selling homes is an incredibly competitive business, with 100,000 REALTORS® working through thousands of brokerages. Business models are diverse and CREA members offer a variety of services.
MLS® Systems are co-operative marketing systems used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade Associations, representing more than 100,000 REALTORS® working through more than 100 real estate Boards and Associations.
Copyright Canadian Real Estate Association. Reprinted with Permission
“We are pleased that after careful consideration and reflection, real estate Boards and Associations from across Canada have endorsed the agreement,” says Pahud.
The agreement was approved by CREA’s Board of Directors and the Commissioner of Competition on September 30th and was in escrow pending today’s vote. It confirms CREA’s commitment to a competitive real estate services market.
The Commissioner and CREA have agreed that its rules as well as those of its members should not deny or discriminate against REALTORS® wishing to offer mere posting services. CREA does not believe that such rules exist today, but if they do, they must be repealed or Boards will lose their license to operate under the MLS® trademarks. Board MLS® Systems remain a member to member service designed to provide accurate and timely information critical to the delivery of professional real estate services to Canadians.
“This 10-year agreement brings a close to a long process of negotiation with the Competition Bureau and will allow CREA and REALTORS® to do what they do best – help people with the biggest financial decision of their lives, buying and selling a home in these challenging economic times,” says Pahud.
CREA believes the agreement reflects both current practices and intent regarding posting to Board MLS® Systems. Buying and selling homes is an incredibly competitive business, with 100,000 REALTORS® working through thousands of brokerages. Business models are diverse and CREA members offer a variety of services.
MLS® Systems are co-operative marketing systems used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade Associations, representing more than 100,000 REALTORS® working through more than 100 real estate Boards and Associations.
Copyright Canadian Real Estate Association. Reprinted with Permission
National Resale Housing Activity Improves In October
OTTAWA – November 15th, 2010 – National resale housing activity rose for the third consecutive month in October 2010, according to statistics released by The Canadian Real Estate Association (CREA).
Seasonally adjusted national home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards climbed 4.6 per cent in October 2010. The monthly rise in activity builds on similar increases in August and September. As a result, activity now stands 13.3 per cent above July levels, when it reached this year’s low point. Three-quarters of local markets posted monthly increases in seasonally adjusted activity in October, led by Toronto and Vancouver.
As further evidence that the market is returning to normal, sales activity in October stood halfway between the recessionary low reached in December 2008, and the record level activity posted in December 2009.
Actual (not seasonally adjusted) national sales activity in October 2010 was 21.6 per below levels for October 2009, when activity set a new record for the month.
National sales activity rebounded last year without a single monthly decline and hit record levels in the second half of 2009. As a result, large declines in activity compared to year-ago levels are masking recent monthly gains in national sales activity. Record level activity late last year is expected to continue stretching year-ago comparisons over the rest of 2010 (Exhibit 1).
The number of new residential listings on Canadian MLS® Systems edged up 1.3 per cent on a seasonally adjusted basis in October. New listings remain 14 per cent below the recent peak reached in April 2010.
National sales activity and new listings have swung widely but synchronously, which has kept the market in balanced territory since the spring. Over half of all local markets in Canada are balanced, with an almost equal proportion of the remainder in buyers’ or sellers’ market territory.
The national average price trend remains stable, in keeping with a balanced market. The national average price trend has remained fairly steady for more than a year, but only recently is this being reflected in year-over-year comparisons. The national average price for homes sold in October 2010 was $343,747, up less than a percentage point compared to one year ago. October marks the fourth consecutive month in which the average home price has remained roughly even with year-ago levels.
The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and measures the balance between housing supply and demand. The seasonally adjusted number of months of inventory stood at 6.2 months at the end of October on a national basis. This is down from 6.5 months in September. The number of months of inventory now stands a full month below where it was in July.
“The continuation of low interest rates is supporting sales activity, which has been improving over the past few months in a number of major markets including Vancouver,” said Georges Pahud, CREA’s President. “National housing market trends are improving, but local market trends can differ significantly, so home buyers and sellers should consult their REALTOR® to understand how their housing market is evolving.”
“National sales activity is now running almost halfway between the highs and lows posted between late 2008 and late 2009,” said Gregory Klump, CREA’s Chief Economist. “This suggests that the Canadian housing market may be starting to normalize. After the wild rollercoaster ride that many housing markets have been on, normal and stable market conditions are something that many buyers and sellers will likely welcome.”
PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.
“Copyright Canadian Real Estate Association. Reprinted with permission.”
Seasonally adjusted national home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards climbed 4.6 per cent in October 2010. The monthly rise in activity builds on similar increases in August and September. As a result, activity now stands 13.3 per cent above July levels, when it reached this year’s low point. Three-quarters of local markets posted monthly increases in seasonally adjusted activity in October, led by Toronto and Vancouver.
As further evidence that the market is returning to normal, sales activity in October stood halfway between the recessionary low reached in December 2008, and the record level activity posted in December 2009.
Actual (not seasonally adjusted) national sales activity in October 2010 was 21.6 per below levels for October 2009, when activity set a new record for the month.
National sales activity rebounded last year without a single monthly decline and hit record levels in the second half of 2009. As a result, large declines in activity compared to year-ago levels are masking recent monthly gains in national sales activity. Record level activity late last year is expected to continue stretching year-ago comparisons over the rest of 2010 (Exhibit 1).
The number of new residential listings on Canadian MLS® Systems edged up 1.3 per cent on a seasonally adjusted basis in October. New listings remain 14 per cent below the recent peak reached in April 2010.
National sales activity and new listings have swung widely but synchronously, which has kept the market in balanced territory since the spring. Over half of all local markets in Canada are balanced, with an almost equal proportion of the remainder in buyers’ or sellers’ market territory.
The national average price trend remains stable, in keeping with a balanced market. The national average price trend has remained fairly steady for more than a year, but only recently is this being reflected in year-over-year comparisons. The national average price for homes sold in October 2010 was $343,747, up less than a percentage point compared to one year ago. October marks the fourth consecutive month in which the average home price has remained roughly even with year-ago levels.
The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and measures the balance between housing supply and demand. The seasonally adjusted number of months of inventory stood at 6.2 months at the end of October on a national basis. This is down from 6.5 months in September. The number of months of inventory now stands a full month below where it was in July.
“The continuation of low interest rates is supporting sales activity, which has been improving over the past few months in a number of major markets including Vancouver,” said Georges Pahud, CREA’s President. “National housing market trends are improving, but local market trends can differ significantly, so home buyers and sellers should consult their REALTOR® to understand how their housing market is evolving.”
“National sales activity is now running almost halfway between the highs and lows posted between late 2008 and late 2009,” said Gregory Klump, CREA’s Chief Economist. “This suggests that the Canadian housing market may be starting to normalize. After the wild rollercoaster ride that many housing markets have been on, normal and stable market conditions are something that many buyers and sellers will likely welcome.”
PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.
“Copyright Canadian Real Estate Association. Reprinted with permission.”
Canadian Real Estate Association Introduces Hand Held House-Hunting with New Mobile Application
November 12, 2010 – The Canadian Real Estate Association (CREA) unveiled its latest home buying and selling innovation, a new mobile application of REALTOR.ca for Windows® Phone 7. REALTOR.ca is operated by CREA, and is the most visited real estate website in Canada, with about 350 000 property listings available at any one time.
“Allowing people to check out houses whenever they want, wherever they want, will make the home and property hunt that much easier,” said CREA President Georges Pahud. “Today’s consumers want portable, on-the-go information and REALTORS® across Canada are happy to be able to meet this need with the new REALTOR.ca app.”
The REALTOR.ca app provides house hunters with the functionality of REALTOR.ca while taking advantage of Windows Phone 7 device features such as GPS. The app allows users to search for houses and properties across Canada and to connect with REALTORS® to view, buy or sell a property. Photos, newly listed properties and open house information are all available.
Using the handheld’s GPS technology, and the REALTOR.ca search function, users can search for properties near their location and get driving directions too. Interactive BING mapping is embedded to allow consumers to focus on specific neighbourhoods.
“Buying a home is often the biggest financial transaction of one’s lifetime. Easily accessible, detailed information about homes and neighbourhoods, as well as fingertip access to the expertise of REALTORS®, helps people make well-informed decisions” said Pahud.
The REALTOR.ca app was developed through a partnership with Microsoft Canada Inc. and Navantis.
The REALTOR.ca app will be available for other handheld devices in the coming weeks. Plans are currently underway for iPhone and BlackBerry versions.
“Copyright Canadian Real Estate Association. Reprinted with permission.”
“Allowing people to check out houses whenever they want, wherever they want, will make the home and property hunt that much easier,” said CREA President Georges Pahud. “Today’s consumers want portable, on-the-go information and REALTORS® across Canada are happy to be able to meet this need with the new REALTOR.ca app.”
The REALTOR.ca app provides house hunters with the functionality of REALTOR.ca while taking advantage of Windows Phone 7 device features such as GPS. The app allows users to search for houses and properties across Canada and to connect with REALTORS® to view, buy or sell a property. Photos, newly listed properties and open house information are all available.
Using the handheld’s GPS technology, and the REALTOR.ca search function, users can search for properties near their location and get driving directions too. Interactive BING mapping is embedded to allow consumers to focus on specific neighbourhoods.
“Buying a home is often the biggest financial transaction of one’s lifetime. Easily accessible, detailed information about homes and neighbourhoods, as well as fingertip access to the expertise of REALTORS®, helps people make well-informed decisions” said Pahud.
The REALTOR.ca app was developed through a partnership with Microsoft Canada Inc. and Navantis.
The REALTOR.ca app will be available for other handheld devices in the coming weeks. Plans are currently underway for iPhone and BlackBerry versions.
“Copyright Canadian Real Estate Association. Reprinted with permission.”
CREA Revises Annual Resale Housing Forecast
OTTAWA – November 5, 2010 – The Canadian Real Estate Association (CREA) has lowered its forecast for home sales activity via the Multiple Listing Service® (MLS®)Systems of Canadian real estate Boards and Associations for 2010 and 2011.
Sales activity in the third quarter of 2010 began on a weak footing, but gained traction as the quarter progressed. Improving momentum for home sales activity suggests the resale housing market is stabilizing, but weaker than expected third quarter activity has reduced CREA’s annual forecast.
National sales activity is now expected to reach 442,200 units in 2010, representing an annual decline of 4.9 per cent. While monthly levels for sales activity are stabilizing, year-over-year comparisons are likely to remain stretched well into 2011 due to the record-level activity reported in late 2009 and early 2010.
Lackluster economic and job growth, muted consumer confidence, and the resumption of interest rate increases are expected in 2011. Against this economic backdrop, national home sales activity is forecast to decline by nine per cent to 402,500 units.
“Interest rates are expected to resume their return to more normal levels next year, but will still be at levels that are friendly to the housing market,” said Georges Pahud, CREA’s President. “For the tenth year in a row, more than 400,000 homes are expected to change hands over the MLS® Systems of Canadian real estate Boards and Associations next year.”
Levels for sales activity and new listings have swung widely until recent months. Despite their volatility, movements in sales activity and new listings have remained in synch and have kept the resale housing market balanced since early 2010. The overall supply of homes for sale has also been trending lower in recent months. The resale housing market has remained balanced on a national basis and in most provinces, resulting in stable average price trends.
The national average home price is forecast to rise 3.1 per cent in 2010 to $330,200, with increases in all provinces. The small revision to CREA’s average price forecast reflects changes to the forecast for provincial sales activity and corresponding provincial contributions to the national average price calculation. The balance between supply and demand is forecast to remain stable, resulting in stable price trends.
Modest average price gains are forecast in 2011 in all provinces except British Columbia, Alberta, and Ontario. Lower sales activity in British Columbia and Ontario are expected to result in a 1.3 per cent decline in the national average price to $326,000.
“Housing demand and supply is stabilizing,” said Gregory Klump, CREA’s Chief Economist. “That’s good news for home buyers, who will feel less hurried to make an offer than they did when transitory factors ignited housing demand in early 2010. It’s also good news for home sellers, who will feel more confident about price stability now that the housing market has become balanced.”
“Interest rates are widely expected to remain low for some time due to recent downward revisions by the Bank of Canada to its outlooks for economic growth and inflation. Consumer sentiment will likely remain under pressure until economic prospects improve meaningfully,” said Klump.
“In the meantime, many households will be focused on paying down their debts before the Bank of Canada resumes hiking interest rates next year,” Klump added. Economic uncertainty is likely to keep potential homebuyers in a cautious mood, so the continuation of low and stable interest rates is unlikely to cause housing demand or prices to swell.”
“Copyright Canadian Real Estate Association. Reprinted with permission.”
Sales activity in the third quarter of 2010 began on a weak footing, but gained traction as the quarter progressed. Improving momentum for home sales activity suggests the resale housing market is stabilizing, but weaker than expected third quarter activity has reduced CREA’s annual forecast.
National sales activity is now expected to reach 442,200 units in 2010, representing an annual decline of 4.9 per cent. While monthly levels for sales activity are stabilizing, year-over-year comparisons are likely to remain stretched well into 2011 due to the record-level activity reported in late 2009 and early 2010.
Lackluster economic and job growth, muted consumer confidence, and the resumption of interest rate increases are expected in 2011. Against this economic backdrop, national home sales activity is forecast to decline by nine per cent to 402,500 units.
“Interest rates are expected to resume their return to more normal levels next year, but will still be at levels that are friendly to the housing market,” said Georges Pahud, CREA’s President. “For the tenth year in a row, more than 400,000 homes are expected to change hands over the MLS® Systems of Canadian real estate Boards and Associations next year.”
Levels for sales activity and new listings have swung widely until recent months. Despite their volatility, movements in sales activity and new listings have remained in synch and have kept the resale housing market balanced since early 2010. The overall supply of homes for sale has also been trending lower in recent months. The resale housing market has remained balanced on a national basis and in most provinces, resulting in stable average price trends.
The national average home price is forecast to rise 3.1 per cent in 2010 to $330,200, with increases in all provinces. The small revision to CREA’s average price forecast reflects changes to the forecast for provincial sales activity and corresponding provincial contributions to the national average price calculation. The balance between supply and demand is forecast to remain stable, resulting in stable price trends.
Modest average price gains are forecast in 2011 in all provinces except British Columbia, Alberta, and Ontario. Lower sales activity in British Columbia and Ontario are expected to result in a 1.3 per cent decline in the national average price to $326,000.
“Housing demand and supply is stabilizing,” said Gregory Klump, CREA’s Chief Economist. “That’s good news for home buyers, who will feel less hurried to make an offer than they did when transitory factors ignited housing demand in early 2010. It’s also good news for home sellers, who will feel more confident about price stability now that the housing market has become balanced.”
“Interest rates are widely expected to remain low for some time due to recent downward revisions by the Bank of Canada to its outlooks for economic growth and inflation. Consumer sentiment will likely remain under pressure until economic prospects improve meaningfully,” said Klump.
“In the meantime, many households will be focused on paying down their debts before the Bank of Canada resumes hiking interest rates next year,” Klump added. Economic uncertainty is likely to keep potential homebuyers in a cautious mood, so the continuation of low and stable interest rates is unlikely to cause housing demand or prices to swell.”
“Copyright Canadian Real Estate Association. Reprinted with permission.”
The Value of A Rate Hold
Securing a rate hold is like having insurance on your mortgage rate – you no longer have to worry about mortgage rates increasing while you find your new home over the next 90-120 days. And if rates drop within that same period, so too will your pre-approved rate.
For instance, if you obtain a 3.75% rate hold and then global risks subside and the economy strongly recovers over the next three to four months, that 3.75% could easily jump to 4.50% or higher. In this case, your rate hold for 3.75% would have saved you three-quarters of a percentage point, which would translate to a savings of a significant amount of money over the term of your mortgage.
But a rate hold means nothing if you don’t meet the lender’s qualifications. By working with a mortgage professional or lender to obtain a pre-approval and a rate hold, you can be confident you have access to mortgage financing and you will know how much you can spend before you head out shopping for a property.
It’s important to note, however, that there is a significant difference between being pre-approved and pre-qualified. In order to obtain a pre-approval, the lender fully underwrites the deal, whereas with a pre-qualification only the most basic details are considered. Remember that many banks will only issue a pre-qualification.
There are several reasons why you may want to secure a rate hold, including when you:
• Are thinking of buying a home in the next few months
• Are considering locking in your variable rate to a five-year fixed if rates rise, but your lender won’t hold a good rate for you
• Are casually thinking of refinancing but prefer to wait for fixed rates to rise so that your interest rate differential (IRD) penalty falls
You want to hold a rate on a different term than you were pre-approved for by a different lender
For instance, if you obtain a 3.75% rate hold and then global risks subside and the economy strongly recovers over the next three to four months, that 3.75% could easily jump to 4.50% or higher. In this case, your rate hold for 3.75% would have saved you three-quarters of a percentage point, which would translate to a savings of a significant amount of money over the term of your mortgage.
But a rate hold means nothing if you don’t meet the lender’s qualifications. By working with a mortgage professional or lender to obtain a pre-approval and a rate hold, you can be confident you have access to mortgage financing and you will know how much you can spend before you head out shopping for a property.
It’s important to note, however, that there is a significant difference between being pre-approved and pre-qualified. In order to obtain a pre-approval, the lender fully underwrites the deal, whereas with a pre-qualification only the most basic details are considered. Remember that many banks will only issue a pre-qualification.
There are several reasons why you may want to secure a rate hold, including when you:
• Are thinking of buying a home in the next few months
• Are considering locking in your variable rate to a five-year fixed if rates rise, but your lender won’t hold a good rate for you
• Are casually thinking of refinancing but prefer to wait for fixed rates to rise so that your interest rate differential (IRD) penalty falls
You want to hold a rate on a different term than you were pre-approved for by a different lender
Now is an ideal time to buy
There are several reasons why now is an ideal time to purchase your first home, upgrade to the house of your dreams, purchase vacation property or buy a real estate investment property.
One important fact is that interest rates are unlikely to rise for the short term, as inflation dips. The annual rate of inflation softened in August, casting more doubt on the need for the Bank of Canada to raise interest rates this month. With home prices stabilizing and rates near all-time lows, it’s an ideal time to buy a property.
Making Your First Home Purchase
If you’re a first-time homebuyer, you may feel you can’t afford to purchase a home because you haven’t managed to save your down payment. But there are many solutions available today that can help first-time buyers with their down payments.
Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.
Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. You must, however, stay with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.
Last year, a $5,000 increase was made to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from your RRSPs for a down payment – tax- and interest-free.
And if you’re part of a couple making a home purchase together, you can each withdraw up to $25,000 from your RRSPs.
If you already own a home and are concerned that now may not be the best time to sell because the market has slowed down, remember that what you may lose on selling your home, you’ll gain on the purchase of your new home – so everything will balance out.
As always, if you have any questions about buying or selling a home, your answers are just a phone call or e-mail away!
One important fact is that interest rates are unlikely to rise for the short term, as inflation dips. The annual rate of inflation softened in August, casting more doubt on the need for the Bank of Canada to raise interest rates this month. With home prices stabilizing and rates near all-time lows, it’s an ideal time to buy a property.
Making Your First Home Purchase
If you’re a first-time homebuyer, you may feel you can’t afford to purchase a home because you haven’t managed to save your down payment. But there are many solutions available today that can help first-time buyers with their down payments.
Many lenders will allow for a gifted or borrowed down payment. And of those lenders that will not provide this alternative, many offer cash-back options that can be used as a down payment.
Better yet, there are programs available from some financial institutions where they will offer a “free down payment” or a “flex down”. Of course, you will end up paying about 1% more in your interest rate, but the program will help you get in the homeownership door and start accumulating equity earlier. You must, however, stay with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.
Last year, a $5,000 increase was made to the RRSP Home Buyers’ Plan, meaning first-time homebuyers can now withdraw up to $25,000 from your RRSPs for a down payment – tax- and interest-free.
And if you’re part of a couple making a home purchase together, you can each withdraw up to $25,000 from your RRSPs.
If you already own a home and are concerned that now may not be the best time to sell because the market has slowed down, remember that what you may lose on selling your home, you’ll gain on the purchase of your new home – so everything will balance out.
As always, if you have any questions about buying or selling a home, your answers are just a phone call or e-mail away!
Market Watch – October 2010
Housing Market Conditions Remained Healthy in September
Residential real estate markets across Canada are set to return to a normal level of activity for the last half of 2010, according to the Canadian Real Estate Association. This news comes after a summer lull; however, the return to normality for markets coast to coast will not likely exceed the sales posted in the final half of 2009.
“The number of sales we saw in September is pretty much on par with the levels of sales for Septembers over the last eight years, last year excepted,” said Joe Ferrante, REALTORS® Association of Hamilton-Burlington (RAHB) President, “Our year-to-date sales are still ahead of last year’s, although the gap is closing as the year progresses.”
Based on a variety of indicators that we look at each month, signs of more market stability are showing in most areas across the country.
Ontario - Sales are normal for September
Toronto, October 5, 2010 - Greater Toronto REALTORS® reported 6,310 sales through the Multiple Listing Service® (MLS®) in September 2010. This represented a 23% decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up 4% compared to the first three quarters of 2009.
"The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and the first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA," said Toronto Real Estate Board (TREB) President Bill Johnston.
The average price for September transactions was $427,329– up 5% compared to the average of $406,877 reported in September 2009. The average selling price through the first nine months of the year was $429,657.
"Resale homes in the GTA remain affordable," said Jason Mercer, TREB's Senior Manager of Market Analysis.
In September, the median price was $360,325, up from the $347,000 recorded during September of 2009.
Ottawa, October 5, 2010 – In Ottawa, 1,074 residential properties (240 condominiums and 834 residential properties) were sold in September compared with 1,218 in September 2009, recording a decrease of 11.8%.
“After record-breaking sales in September of 2009, this year’s sales were closer to the five-year average for this time of year. Home prices continued to appreciate but not skyrocket, as they generally do in Ottawa. I would describe the current state of the housing market in our region as balanced, with a good supply of homes available for sale,” said Immediate Past President Rick Snell, Ottawa Real Estate Board.
The average sale price of residential properties, including condominiums, sold in September in the Ottawa area was $324,745, an increase of 6.6% over September 2009.
The average sale price for a condominium-class property was $240,050, a decrease of 0.8% over September 2009. While the average sale price of a residential-class property was $349,117, an increase of 8.2% over September 2009.
Hamilton, October 5, 2010 – The Greater Hamilton-Burlington area resale market reported a total of 1,046 units sold in September, indicating a decrease of 13.5% from the same month last year but an increase of 2.8% over August of this year, according to Multiple Listing Service® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB). Total unit sales for the first three quarters of 2010 are being reported at 5.4% higher than the same period last year, while new units listed are 13.3% higher year-to-date.
Residential properties sold during September totaled 1,007 which included 813 freehold properties and 194 condominiums. Commercial sales for September, including industrial, farm, vacant land and business, totaled 39 units.
The average price of freehold residential properties sold in the month of September was $336,351, an increase of 3.4% over September last year. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.
In the condominium market, the average price of condominiums in September was $233,596, an increase of 1.7% over September 2009.
The total number of units listed for sale during August was 1,935, which is a 17.2% increase over the number listed in the same period in 2009.
Alberta - Home sales in the city of Calgary increased in September
Calgary, October 1, 2010 – Home sales in Calgary were up month-over-month in September 2010, the first up tick in sales since April 2010. Year over-year sales continued to trend lower in the month of September, but at a pace slower than previous months, according to figures released today by the Calgary Real Estate Board (CREB®).
The number of single family home sales in the month of September 2010 grew by 10% at 958, compared with August 2010, when sales were 867. The number of condominium sales for the month of September 2010 was 366. This was an increase of 1% from the 364 condominium transactions recorded in August 2010.
Year-over-year, the number of single family homes sold in September 2010 in the city of Calgary were down 24%. In September 2009, single family home sales totaled 1,257. Condominium sales saw a decrease of 37% from the same time a year ago. In September 2009, condominium sales were 580.
“There are signs that September may mark a gradual, if not slight, up tick for Calgary’s housing market—we are seeing a modest improvement since the market’s decline, that really started in April of this year,” says Diane Scott, president of CREB®. “The Bank of Canada is in no hurry to raise interest rates to any significant level, and affordability continues to improve in key segments of the Calgary housing market. These factors, along with great selection, have clearly tipped this market in favour of the buyer,” says Scott.
The average price of a single family home in the city of Calgary in September 2010 was $460,278, showing a 3% increase from August 2010, when the average price was $445,617, and no significant change from September 2009, when the average price was $459,085.
The average price of a condominium in the city of Calgary in September 2010 was $284,028, showing a 1% decrease from August 2010, when the average price was $286,384 and a 2% decrease over last year, when the average price was $290,253.
British Columbia – Housing market factors indicate stability
Vancouver, Oct 5, 2010 - September home sales in Greater Vancouver were consistent with activity experienced in the preceding two months across most categories.
The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totaled 2,220 in September 2010. This represents a 0.8% increase compared to August 2010 and 37.6% decline from the 3,559 sales in September 2009.
In comparison, last month’s residential sales represent a 40.1% increase over the 1,585 residential sales in September 2008, a 20% decline compared to September 2007’s 2,776 sales, and an 11.9% decline compared to September 2006’s 2,519 sales.
“We’ve seen fewer properties coming on to the market over the last three months. This trend, combined with the continued attraction of low interest rates, is likely having the effect of less downward pressure on home prices,” Jake Moldowan, REBGV president said.
Since spring, housing prices in the region have trended slightly downward, with a decrease of 2.7% compared to the all-time high reached in April when the MLSLink® Housing Price Index (HPI) residential benchmark price was $593,419. The overall benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5.5% to $577,174 in September 2010 from $547,092 in September 2009. The current price remains consistent with last month, rising just 0.1% between August and September 2010.
Total active property listings currently sit at 15,401, basically unchanged compared to last month and a 22% increase from September 2009. Over the last three months, active listings in the region have declined 12.3%.
New residential property listings posted in September declined 17.6% to 4,731 compared to September 2009 when 5,746 new units were listed.
“We saw signs of more stability in our marketplace last month than we have seen since spring based on a variety of indicators that we look at each month,” Moldowan said. “At 56 days, it took, on average, three days less to sell a home in our region compared to August. This is the first month-over-month decline we’ve seen in this category since April.”
Sales of detached properties in September 2010 reached 866, a decrease of 39.1% from the 1,423 detached sales recorded in September 2009, and a 58.6% increase from the 546 units sold in September 2008. The benchmark price for detached properties increased 6.7% from September 2009 to $790,992.
Sales of apartment properties reached 971 in September 2010, a decline of 34.7% compared to the 1,489 sales in September 2009, and an increase of 27.1% compared to the 764 sales in September 2008. The benchmark price of an apartment property increased 3.7% from September 2009 to $388,373.
Attached property sales in September 2010 totaled 383, a decline of 40.1% compared to the 647 sales in September 2009, and a 39.3% increase from the 275 attached properties sold in September 2008. The benchmark price of an attached unit increased 5.2% between September 2009 and 2010 to $490,385.
Residential real estate markets across Canada are set to return to a normal level of activity for the last half of 2010, according to the Canadian Real Estate Association. This news comes after a summer lull; however, the return to normality for markets coast to coast will not likely exceed the sales posted in the final half of 2009.
“The number of sales we saw in September is pretty much on par with the levels of sales for Septembers over the last eight years, last year excepted,” said Joe Ferrante, REALTORS® Association of Hamilton-Burlington (RAHB) President, “Our year-to-date sales are still ahead of last year’s, although the gap is closing as the year progresses.”
Based on a variety of indicators that we look at each month, signs of more market stability are showing in most areas across the country.
Ontario - Sales are normal for September
Toronto, October 5, 2010 - Greater Toronto REALTORS® reported 6,310 sales through the Multiple Listing Service® (MLS®) in September 2010. This represented a 23% decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up 4% compared to the first three quarters of 2009.
"The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and the first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA," said Toronto Real Estate Board (TREB) President Bill Johnston.
The average price for September transactions was $427,329– up 5% compared to the average of $406,877 reported in September 2009. The average selling price through the first nine months of the year was $429,657.
"Resale homes in the GTA remain affordable," said Jason Mercer, TREB's Senior Manager of Market Analysis.
In September, the median price was $360,325, up from the $347,000 recorded during September of 2009.
Ottawa, October 5, 2010 – In Ottawa, 1,074 residential properties (240 condominiums and 834 residential properties) were sold in September compared with 1,218 in September 2009, recording a decrease of 11.8%.
“After record-breaking sales in September of 2009, this year’s sales were closer to the five-year average for this time of year. Home prices continued to appreciate but not skyrocket, as they generally do in Ottawa. I would describe the current state of the housing market in our region as balanced, with a good supply of homes available for sale,” said Immediate Past President Rick Snell, Ottawa Real Estate Board.
The average sale price of residential properties, including condominiums, sold in September in the Ottawa area was $324,745, an increase of 6.6% over September 2009.
The average sale price for a condominium-class property was $240,050, a decrease of 0.8% over September 2009. While the average sale price of a residential-class property was $349,117, an increase of 8.2% over September 2009.
Hamilton, October 5, 2010 – The Greater Hamilton-Burlington area resale market reported a total of 1,046 units sold in September, indicating a decrease of 13.5% from the same month last year but an increase of 2.8% over August of this year, according to Multiple Listing Service® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB). Total unit sales for the first three quarters of 2010 are being reported at 5.4% higher than the same period last year, while new units listed are 13.3% higher year-to-date.
Residential properties sold during September totaled 1,007 which included 813 freehold properties and 194 condominiums. Commercial sales for September, including industrial, farm, vacant land and business, totaled 39 units.
The average price of freehold residential properties sold in the month of September was $336,351, an increase of 3.4% over September last year. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.
In the condominium market, the average price of condominiums in September was $233,596, an increase of 1.7% over September 2009.
The total number of units listed for sale during August was 1,935, which is a 17.2% increase over the number listed in the same period in 2009.
Alberta - Home sales in the city of Calgary increased in September
Calgary, October 1, 2010 – Home sales in Calgary were up month-over-month in September 2010, the first up tick in sales since April 2010. Year over-year sales continued to trend lower in the month of September, but at a pace slower than previous months, according to figures released today by the Calgary Real Estate Board (CREB®).
The number of single family home sales in the month of September 2010 grew by 10% at 958, compared with August 2010, when sales were 867. The number of condominium sales for the month of September 2010 was 366. This was an increase of 1% from the 364 condominium transactions recorded in August 2010.
Year-over-year, the number of single family homes sold in September 2010 in the city of Calgary were down 24%. In September 2009, single family home sales totaled 1,257. Condominium sales saw a decrease of 37% from the same time a year ago. In September 2009, condominium sales were 580.
“There are signs that September may mark a gradual, if not slight, up tick for Calgary’s housing market—we are seeing a modest improvement since the market’s decline, that really started in April of this year,” says Diane Scott, president of CREB®. “The Bank of Canada is in no hurry to raise interest rates to any significant level, and affordability continues to improve in key segments of the Calgary housing market. These factors, along with great selection, have clearly tipped this market in favour of the buyer,” says Scott.
The average price of a single family home in the city of Calgary in September 2010 was $460,278, showing a 3% increase from August 2010, when the average price was $445,617, and no significant change from September 2009, when the average price was $459,085.
The average price of a condominium in the city of Calgary in September 2010 was $284,028, showing a 1% decrease from August 2010, when the average price was $286,384 and a 2% decrease over last year, when the average price was $290,253.
British Columbia – Housing market factors indicate stability
Vancouver, Oct 5, 2010 - September home sales in Greater Vancouver were consistent with activity experienced in the preceding two months across most categories.
The Real Estate Board of Greater Vancouver (REBGV) reports that the number of residential property sales in Greater Vancouver totaled 2,220 in September 2010. This represents a 0.8% increase compared to August 2010 and 37.6% decline from the 3,559 sales in September 2009.
In comparison, last month’s residential sales represent a 40.1% increase over the 1,585 residential sales in September 2008, a 20% decline compared to September 2007’s 2,776 sales, and an 11.9% decline compared to September 2006’s 2,519 sales.
“We’ve seen fewer properties coming on to the market over the last three months. This trend, combined with the continued attraction of low interest rates, is likely having the effect of less downward pressure on home prices,” Jake Moldowan, REBGV president said.
Since spring, housing prices in the region have trended slightly downward, with a decrease of 2.7% compared to the all-time high reached in April when the MLSLink® Housing Price Index (HPI) residential benchmark price was $593,419. The overall benchmark price for all residential properties in Greater Vancouver over the last 12 months has increased 5.5% to $577,174 in September 2010 from $547,092 in September 2009. The current price remains consistent with last month, rising just 0.1% between August and September 2010.
Total active property listings currently sit at 15,401, basically unchanged compared to last month and a 22% increase from September 2009. Over the last three months, active listings in the region have declined 12.3%.
New residential property listings posted in September declined 17.6% to 4,731 compared to September 2009 when 5,746 new units were listed.
“We saw signs of more stability in our marketplace last month than we have seen since spring based on a variety of indicators that we look at each month,” Moldowan said. “At 56 days, it took, on average, three days less to sell a home in our region compared to August. This is the first month-over-month decline we’ve seen in this category since April.”
Sales of detached properties in September 2010 reached 866, a decrease of 39.1% from the 1,423 detached sales recorded in September 2009, and a 58.6% increase from the 546 units sold in September 2008. The benchmark price for detached properties increased 6.7% from September 2009 to $790,992.
Sales of apartment properties reached 971 in September 2010, a decline of 34.7% compared to the 1,489 sales in September 2009, and an increase of 27.1% compared to the 764 sales in September 2008. The benchmark price of an apartment property increased 3.7% from September 2009 to $388,373.
Attached property sales in September 2010 totaled 383, a decline of 40.1% compared to the 647 sales in September 2009, and a 39.3% increase from the 275 attached properties sold in September 2008. The benchmark price of an attached unit increased 5.2% between September 2009 and 2010 to $490,385.
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