British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 31 per cent to $31.3 billion in 2008, compared to 2007. Residential unit sales declined 33 per cent to 68,923 units last year, the lowest level since 2000, when 54,179 transactions were recorded. The average MLS® residential price in 2008 was $454,599, up 3.5 per cent from 2007.
“The housing market came in like a lion and went out like a lamb in 2008,” said Cameron Muir, BCREA Chief Economist. “Home prices reached a record high in March, but edged lower during the balance of the year.” The average residential sales price hit $483,291 in March and ended the year at $429,210, an 11 per cent decline in nine months.
“The global financial crisis, a sharp correction in the equity markets and a recessionary environment in Canada has wreaked havoc on consumer confidence,” added Muir. “While it’s difficult to predict when consumer confidence will strengthen, home affordability is quietly improving as lower prices and mortgage interest rates increase the buying power of BC households.”
December MLS® residential sales dollar volume in the province declined 52 per cent to $1.05 billion, compared to December 2007. Provincial MLS® sales were down 49 per cent to 2,456 units, while the average residential price declined 6 per cent to $429,210 over the same period.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Tuesday, January 13, 2009
Housing Starts Moderate in December
The seasonally adjusted annual rate1 of housing starts was 177,300 units in December, down marginally from 178,000 units in November, according to Canada Mortgage and Housing Corporation (CMHC).
“Housing starts in December were almost unchanged compared to November,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “At an estimated 212,366 units, housing starts in 2008 breached the 200,000 unit mark for a seventh consecutive year.”
Pent-up housing demand which built up over the 1990's enabled Canadian housing starts to exceed long run demographic demand for the majority of this decade. This excess demand has gradually decreased and CMHC expects construction levels in 2009 to be more aligned with long run demographic demand.
The seasonally adjusted annual rate of urban starts decreased 0.5 per cent to 150,100 units in December. Urban multiple starts increased 3.2 per cent to 87,400 units, while urban single starts eased 5.1 per cent to 62,700 units in December.
December’s seasonally adjusted annual rate of urban starts moderated in three of the five regions in Canada. Urban starts declined 12.6 per cent to 36,700 units in Quebec, 6.3 per cent to 25,100 units in the Prairies, and 3.6 per cent to 8,100 units in the Atlantic Region. British Columbia urban starts rose 9.9 per cent to 19,900 units and Ontario urban starts climbed 8.6 per cent to 60,300 units.
Rural starts were estimated at a seasonally adjusted annual rate of 27,200 units in December2.
For the year 2008, actual starts in rural and urban areas combined moderated by an estimated 7.0 per cent, compared to the same period last year. Year-to-date actual starts in urban areas have decreased by an estimated 3.3 per cent compared to 2007. Actual urban single starts for 2008 were 18.1 per cent lower than they were a year earlier while urban multiple starts were up by 9.8 per cent over the same period.
CMHC OTTAWA, January 9, 2009
“Housing starts in December were almost unchanged compared to November,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “At an estimated 212,366 units, housing starts in 2008 breached the 200,000 unit mark for a seventh consecutive year.”
Pent-up housing demand which built up over the 1990's enabled Canadian housing starts to exceed long run demographic demand for the majority of this decade. This excess demand has gradually decreased and CMHC expects construction levels in 2009 to be more aligned with long run demographic demand.
The seasonally adjusted annual rate of urban starts decreased 0.5 per cent to 150,100 units in December. Urban multiple starts increased 3.2 per cent to 87,400 units, while urban single starts eased 5.1 per cent to 62,700 units in December.
December’s seasonally adjusted annual rate of urban starts moderated in three of the five regions in Canada. Urban starts declined 12.6 per cent to 36,700 units in Quebec, 6.3 per cent to 25,100 units in the Prairies, and 3.6 per cent to 8,100 units in the Atlantic Region. British Columbia urban starts rose 9.9 per cent to 19,900 units and Ontario urban starts climbed 8.6 per cent to 60,300 units.
Rural starts were estimated at a seasonally adjusted annual rate of 27,200 units in December2.
For the year 2008, actual starts in rural and urban areas combined moderated by an estimated 7.0 per cent, compared to the same period last year. Year-to-date actual starts in urban areas have decreased by an estimated 3.3 per cent compared to 2007. Actual urban single starts for 2008 were 18.1 per cent lower than they were a year earlier while urban multiple starts were up by 9.8 per cent over the same period.
CMHC OTTAWA, January 9, 2009
Tuesday, December 9, 2008
Housing Starts Moderate in November
The seasonally adjusted annual rate of housing starts was 172,000 units in November, down from 211,800 units in October, according to Canada Mortgage and Housing Corporation (CMHC).
“The decrease in November housing starts can be attributed in part to the volatile multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Still, housing starts in November remain consistent with our forecast which calls for more moderate activity of 212,000 units this year and 178,000 units next year. Note that at the beginning of the new millennium, Canada posted strong housing start levels given a pent-up demand that existed then. Over the last few years, this excess demand gradually decreased and our forecast for 2008 and 2009 reflects this new reality with housing starts, more aligned with long run demographic demand.”
The seasonally adjusted annual rate of urban starts decreased 21.6 per cent to 144,800 units in November. Urban multiple starts moderated 29.1 per cent to 81,700 units, while urban single starts eased 9.0 per cent to 63,100 units in November.
November’s seasonally adjusted annual rate of urban starts moderated in all regions of Canada. Urban starts declined to 17,900 units in British Columbia, 23,500 units in the Prairies, 54,700 units in Ontario, 41,100 units in Quebec, and 7,600 units in the Atlantic region.
Rural starts were estimated at a seasonally adjusted annual rate of 27,200 units in November.
For the first 11 months of 2008, actual starts in rural and urban areas combined moderated by an estimated 7.6 per cent, compared to the same period last year. Year-to-date actual starts in urban areas have decreased by an estimated 3.9 per cent over the same period in 2007. Actual urban single starts for the January to November period of this year were 18.4 per cent lower than they were a year earlier while urban multiple starts were up by 8.6 per cent over the same period.
CMHC December 8, 2008
“The decrease in November housing starts can be attributed in part to the volatile multiple starts segment,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Still, housing starts in November remain consistent with our forecast which calls for more moderate activity of 212,000 units this year and 178,000 units next year. Note that at the beginning of the new millennium, Canada posted strong housing start levels given a pent-up demand that existed then. Over the last few years, this excess demand gradually decreased and our forecast for 2008 and 2009 reflects this new reality with housing starts, more aligned with long run demographic demand.”
The seasonally adjusted annual rate of urban starts decreased 21.6 per cent to 144,800 units in November. Urban multiple starts moderated 29.1 per cent to 81,700 units, while urban single starts eased 9.0 per cent to 63,100 units in November.
November’s seasonally adjusted annual rate of urban starts moderated in all regions of Canada. Urban starts declined to 17,900 units in British Columbia, 23,500 units in the Prairies, 54,700 units in Ontario, 41,100 units in Quebec, and 7,600 units in the Atlantic region.
Rural starts were estimated at a seasonally adjusted annual rate of 27,200 units in November.
For the first 11 months of 2008, actual starts in rural and urban areas combined moderated by an estimated 7.6 per cent, compared to the same period last year. Year-to-date actual starts in urban areas have decreased by an estimated 3.9 per cent over the same period in 2007. Actual urban single starts for the January to November period of this year were 18.4 per cent lower than they were a year earlier while urban multiple starts were up by 8.6 per cent over the same period.
CMHC December 8, 2008
Friday, November 28, 2008
Financial/Equity Markets Impact October Home Sales
British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 54 per cent to $1.69 billion in October, compared to October 2007. Residential unit sales were down 51 per cent to 4,018 units during the same period. The average MLS® residential price in he province was $420,259, down 6.5 per cent from October 2007.
“Housing demand was negatively affected by the global financial crisis and a sharp downturn in the equity markets,” said Cameron Muir, BCREA Chief Economist. “These events exacerbated an already low level of consumer confidence, keeping many potential homebuyers on the sidelines.”
Residential sales in October were the lowest since December 2000, on a seasonally adjusted basis. “Home sales are unlikely to fall much further,” added Muir. “While the provincial economy has weakened, the fundamentals support a higher level of home sales than experienced last month.”
Year-to-date MLS® residential sales dollar volume in the province declined 27 per cent to $29.2 billion compared to the same period last year. Provincial MLS® sales declined 30 per cent to 63,760 units, while the average residential price increased 5 per cent to $458,078 over the same period.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
“Housing demand was negatively affected by the global financial crisis and a sharp downturn in the equity markets,” said Cameron Muir, BCREA Chief Economist. “These events exacerbated an already low level of consumer confidence, keeping many potential homebuyers on the sidelines.”
Residential sales in October were the lowest since December 2000, on a seasonally adjusted basis. “Home sales are unlikely to fall much further,” added Muir. “While the provincial economy has weakened, the fundamentals support a higher level of home sales than experienced last month.”
Year-to-date MLS® residential sales dollar volume in the province declined 27 per cent to $29.2 billion compared to the same period last year. Provincial MLS® sales declined 30 per cent to 63,760 units, while the average residential price increased 5 per cent to $458,078 over the same period.
“Copyright British Columbia Real Estate Association. Reprinted with permission.”
Sunday, November 16, 2008
October 2008 Kootenay Real Estate Stats
According to the latest stats the price of a residential home in the Kootenay's was 4.4% lower in October 2008 then in October 2007. The average price for October 2008 was $282,606 compared to $295,672 in the year previous.
During the same period the number of listings increased by 57.7%. This has resulted in a decrease in the number of sales to the number of listings. Represented as the sales to listing ratio we have had a drop from 16.2% in 2007 to 7.2% in 2008.
There are some excellent opportunities to purchase right now. If you have been thinking about investing in Real Estate but reluctant to jump in now may be the right time.
During the same period the number of listings increased by 57.7%. This has resulted in a decrease in the number of sales to the number of listings. Represented as the sales to listing ratio we have had a drop from 16.2% in 2007 to 7.2% in 2008.
There are some excellent opportunities to purchase right now. If you have been thinking about investing in Real Estate but reluctant to jump in now may be the right time.
Financial/Equity Markets Impact October Home Sales
British Columbia Real Estate Association (BCREA) reports residential sales dollar volume on the Multiple Listing Service® (MLS®) in BC declined 54 per cent to $1.69 billion in October, compared to October 2007. Residential unit sales were down 51 per cent to 4,018 units during the same period. The average MLS® residential price in the province was $420,259, down 6.5 per cent from October 2007.
“Housing demand was negatively affected by the global financial crisis and a sharp downturn in the equity markets,” said Cameron Muir, BCREA Chief Economist. “These events exacerbated an already low level of consumer confidence, keeping many potential homebuyers on the sidelines.”
Residential sales in October were the lowest since December 2000, on a seasonally adjusted basis. “Home sales are unlikely to fall much further,” added Muir. “While the provincial economy has weakened, the fundamentals support a higher level of home sales than experienced last month.”
Year-to-date MLS® residential sales dollar volume in the province declined 27 per cent to $29.2 billion compared to the same period last year. Provincial MLS® sales declined 30 per cent to 63,760 units, while the average residential price increased 5 per cent to $458,078 over the same
period.
“Copyright British Columbia Real Estate Association. Reprinted with permission.” Vancouver November 14, 2008
“Housing demand was negatively affected by the global financial crisis and a sharp downturn in the equity markets,” said Cameron Muir, BCREA Chief Economist. “These events exacerbated an already low level of consumer confidence, keeping many potential homebuyers on the sidelines.”
Residential sales in October were the lowest since December 2000, on a seasonally adjusted basis. “Home sales are unlikely to fall much further,” added Muir. “While the provincial economy has weakened, the fundamentals support a higher level of home sales than experienced last month.”
Year-to-date MLS® residential sales dollar volume in the province declined 27 per cent to $29.2 billion compared to the same period last year. Provincial MLS® sales declined 30 per cent to 63,760 units, while the average residential price increased 5 per cent to $458,078 over the same
period.
“Copyright British Columbia Real Estate Association. Reprinted with permission.” Vancouver November 14, 2008
Wednesday, November 12, 2008
Government of Canada Announces Additional Support for Canadian Credit Markets
The Honourable Jim Flaherty, Minister of Finance, today announced the Government will purchase up to an additional $50 billion of insured mortgage pools by the end of the fiscal year as part of its ongoing efforts to maintain the availability of longer-term credit in Canada.
This action will increase to $75 billion the maximum value of securities purchased through Canada Mortgage and Housing Corporation (CMHC) under this program.
"At a time of considerable uncertainty in global financial markets, this action will provide Canada’s financial institutions with significant and stable access to longer-term funding," said Minister Flaherty.
"This extension of the program to purchase insured mortgages will further support the availability of credit, which will benefit Canadian households, businesses and the economy. In addition, it will earn a modest rate of return for the Government with no additional risk to the taxpayer."
In addition:
The Government will reduce the base commercial pricing of the Canadian Lenders Assurance Facility by 25 basis points. It will also waive the 25 basis point across-the-board surcharge for insurance provided under the Facility until further notice. This will make the Facility more competitive with similar programs offered in other countries. The term sheet for the Facility will be posted on the Finance Canada web site (www.fin.gc.ca) shortly.
The Office of the Superintendent of Financial Institutions (OSFI) announced yesterday an increase in the allowable limit of innovative and preferred shares in Tier 1 capital. This will provide Canadian financial institutions with more sources of funds to support lending in Canada. This will also ensure that similar decisions in other countries do not place Canadian institutions at a competitive disadvantage. Further technical information is available from OSFI at www.osfi-bsif.gc.ca.
As the Bank of Canada noted in its announcement on October 13, the Bank will continue to provide exceptional liquidity to the Canadian financial system as long as conditions warrant.
"The Government of Canada is prepared to take whatever steps are necessary to ensure that Canada’s strong financial system is not put at a competitive disadvantage by developments in other countries. The Government will not allow Canada’s financial system, which has been ranked as the soundest in the world, to be put at risk by global events," said Minister Flaherty.
CMHC November 12, 2008
This action will increase to $75 billion the maximum value of securities purchased through Canada Mortgage and Housing Corporation (CMHC) under this program.
"At a time of considerable uncertainty in global financial markets, this action will provide Canada’s financial institutions with significant and stable access to longer-term funding," said Minister Flaherty.
"This extension of the program to purchase insured mortgages will further support the availability of credit, which will benefit Canadian households, businesses and the economy. In addition, it will earn a modest rate of return for the Government with no additional risk to the taxpayer."
In addition:
The Government will reduce the base commercial pricing of the Canadian Lenders Assurance Facility by 25 basis points. It will also waive the 25 basis point across-the-board surcharge for insurance provided under the Facility until further notice. This will make the Facility more competitive with similar programs offered in other countries. The term sheet for the Facility will be posted on the Finance Canada web site (www.fin.gc.ca) shortly.
The Office of the Superintendent of Financial Institutions (OSFI) announced yesterday an increase in the allowable limit of innovative and preferred shares in Tier 1 capital. This will provide Canadian financial institutions with more sources of funds to support lending in Canada. This will also ensure that similar decisions in other countries do not place Canadian institutions at a competitive disadvantage. Further technical information is available from OSFI at www.osfi-bsif.gc.ca.
As the Bank of Canada noted in its announcement on October 13, the Bank will continue to provide exceptional liquidity to the Canadian financial system as long as conditions warrant.
"The Government of Canada is prepared to take whatever steps are necessary to ensure that Canada’s strong financial system is not put at a competitive disadvantage by developments in other countries. The Government will not allow Canada’s financial system, which has been ranked as the soundest in the world, to be put at risk by global events," said Minister Flaherty.
CMHC November 12, 2008
Tuesday, November 11, 2008
Housing Starts Remained Strong in October
The seasonally adjusted annual rate of housing starts was 211,800 units in October, down from 218,600 units in September, according to Canada Mortgage and Housing Corporation (CMHC).
“Housing starts remained strong in October and are consistent with our new home construction forecast for 2008,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The slight decrease in housing starts is the result of declines in both single-detached and multiple starts in October.”
The seasonally adjusted annual rate of urban starts eased 4.2 per cent in October, compared to September. Urban multiples declined in October by 6.0 per cent to 115,300 units. Urban single starts decreased 1.1 per cent to 69,300 units in October compared to September.
October’s seasonally adjusted annual rate of urban starts moderated in three out of the five regions of Canada. Urban starts increased to 41,300 units in the Quebec region and to 9,600 units in Atlantic Canada. On the other hand, urban starts declined to 27,900 units in British Columbia, 26,900 units in the Prairies, and 78,900 units in Ontario. Single urban starts decreased in all regions in October, with the exception of Ontario, where they increased by 10.1 per cent.
Rural starts were estimated at a seasonally adjusted annual rate of 27,200 units in October.
For the first ten months of 2008, actual starts in rural and urban areas combined were down an estimated 1.6 per cent, compared to the same period last year. Year-to-date actual starts in urban areas have decreased by an estimated 1.3 per cent over the same period in 2007. Actual urban single starts for the January to October period of this year were 16.3 per cent lower than they were a year earlier while urban multiple starts were up by 11.6 per cent over the same period.
CMHC Ottawa November 10, 2008
“Housing starts remained strong in October and are consistent with our new home construction forecast for 2008,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The slight decrease in housing starts is the result of declines in both single-detached and multiple starts in October.”
The seasonally adjusted annual rate of urban starts eased 4.2 per cent in October, compared to September. Urban multiples declined in October by 6.0 per cent to 115,300 units. Urban single starts decreased 1.1 per cent to 69,300 units in October compared to September.
October’s seasonally adjusted annual rate of urban starts moderated in three out of the five regions of Canada. Urban starts increased to 41,300 units in the Quebec region and to 9,600 units in Atlantic Canada. On the other hand, urban starts declined to 27,900 units in British Columbia, 26,900 units in the Prairies, and 78,900 units in Ontario. Single urban starts decreased in all regions in October, with the exception of Ontario, where they increased by 10.1 per cent.
Rural starts were estimated at a seasonally adjusted annual rate of 27,200 units in October.
For the first ten months of 2008, actual starts in rural and urban areas combined were down an estimated 1.6 per cent, compared to the same period last year. Year-to-date actual starts in urban areas have decreased by an estimated 1.3 per cent over the same period in 2007. Actual urban single starts for the January to October period of this year were 16.3 per cent lower than they were a year earlier while urban multiple starts were up by 11.6 per cent over the same period.
CMHC Ottawa November 10, 2008
Sunday, November 2, 2008
Slow Market Sales Tactics
When a property is listed for sale with a Realtor a listing contract is signed. This contract has a start and end date. If the property is unsold by the end of the contract the listing is said to have expired.
So far in 2008, in an area which includes Nelson, Nelson rural, Kaslo and Salmo, there have been 240 expired listings compared with a total of 171 expired listings for all of 2007. Over the past 7 days alone there have been 64 listings expire.
Some of these expired contracts will be re-listed however some Sellers will decide to take their property off of the market permanently. Seller fatigue being the term used to describe how Sellers are feeling after being unsuccessful in selling their homes. Being a Seller myself I understand the emotional roller coaster that causes this fatigue.
No matter what the market conditions the best that you can hope to do as a Seller is sell for fair market value. To do this requires constantly reevaluating market conditions and revisiting price. The current economic uncertainty has certainly slowed the activity in the real estate market however properties do continue to sell.
Properties that are selling have successful achieved the following two things:
So far in 2008, in an area which includes Nelson, Nelson rural, Kaslo and Salmo, there have been 240 expired listings compared with a total of 171 expired listings for all of 2007. Over the past 7 days alone there have been 64 listings expire.
Some of these expired contracts will be re-listed however some Sellers will decide to take their property off of the market permanently. Seller fatigue being the term used to describe how Sellers are feeling after being unsuccessful in selling their homes. Being a Seller myself I understand the emotional roller coaster that causes this fatigue.
No matter what the market conditions the best that you can hope to do as a Seller is sell for fair market value. To do this requires constantly reevaluating market conditions and revisiting price. The current economic uncertainty has certainly slowed the activity in the real estate market however properties do continue to sell.
Properties that are selling have successful achieved the following two things:
- Priced it Right - For a property to sell right now it must be the most well priced home on the market. There can be no question as to the value. In short when it is viewed by prospective Buyers it should appear to be a deal.
- Be Prepared - Have all of the maintenance issues looked after, hire a home stager, have information regarding utilities available and be mentally prepared to negotiate.
Saturday, November 1, 2008
Housing Starts tp Moderate in 2009
New home construction will moderate from historically high levels, to reach just under 178,000 units in 2009, a level that is consistent with demographic fundamentals, according to Canada Mortgage and Housing Corporation’s (CMHC) fourth quarter Housing Market Outlook, Canada Edition report.
“High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year,” said Bob Dugan, Chief Economist for CMHC. “Housing starts will moderate to 212,200 units in 2008 and 177,975 units in 2009.”
Existing home sales, as measured by the Multiple Listing Service (MLS®)1, which reached a record level of 523,701 sales in 2007, will moderate in 2008 to 452,225 units. In 2009, MLS® sales will move to 433,375 units. Despite a moderation in MLS® sales, demand for existing homes will remain strong by historical standards. With housing markets having become balanced across Canada, the rate of growth in the average MLS® price will moderate. Average prices will reach $306,500 in 2008 and $306,700 in 2009.
October 30, 2008 CMHC
“High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year,” said Bob Dugan, Chief Economist for CMHC. “Housing starts will moderate to 212,200 units in 2008 and 177,975 units in 2009.”
Existing home sales, as measured by the Multiple Listing Service (MLS®)1, which reached a record level of 523,701 sales in 2007, will moderate in 2008 to 452,225 units. In 2009, MLS® sales will move to 433,375 units. Despite a moderation in MLS® sales, demand for existing homes will remain strong by historical standards. With housing markets having become balanced across Canada, the rate of growth in the average MLS® price will moderate. Average prices will reach $306,500 in 2008 and $306,700 in 2009.
October 30, 2008 CMHC
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