OTTAWA – May 17th, 2011 – Statistics released today by The Canadian Real Estate Association (CREA), reveal that national resale housing activity softened in April when compared to March 2011.
The decline in April sales activity reflects changes to mortgage regulations that came into effect previously. As anticipated, the changes pulled forward some sales activity that would have otherwise occurred at a later date.
Seasonally adjusted national home sales activity was down 4.4 per cent in April 2011 compared to the previous month. As expected, declines were largest in some of Canada’s more expensive and active markets, including Toronto, Vancouver, and the Fraser Valley.
Changes to mortgage regulations and other transitory factors also boosted transactions in April last year at the expense of activity in subsequent months. This also contributed to a broadly based decline in sales activity in April 2011 compared to year-ago levels.
Actual (not seasonally adjusted) activity was down 14.7 per cent from levels reported last April.
“Although down nationally, sales activity in April this year compared to April last year was up in a number of local housing markets,” said Gary Morse, CREA’s President. “Housing market trends often evolve and diverge from national trends due to local factors, so buyers and sellers should consult their local REALTOR® to understand how the housing market is shaping up where they live.”
“Last April, several transitory factors artificially boosted sales. This included the impending tightening of mortgage rules, speculation about higher interest rates and the looming introduction of the HST in some provinces. This year, additional measures to tighten mortgage rules were implemented in March and the other transitory factors were absent,” said Gregory Klump, CREA’s Chief Economist. “This makes it difficult to compare the two months in order to reliably gauge the impact of the latest round of mortgage rule changes.”
The number of newly listed homes edged up 1.3 per cent in April from the previous month on a seasonally adjusted basis, but remained well below levels in January and February, when impending changes to mortgage regulations were announced.
With fewer sales and an increase in newly listed homes, the national housing market moved further into balanced territory in April. The national sales-to-new listings ratio, a measure of market balance, stood at 52.5 per cent in April, down from 55.7 in March.
More than two-thirds of local markets in Canada were balanced in April. Almost half of the remainder could be classified as sellers’ markets based on a ratio of sales to new listings above 60 per cent.
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 is another measure of the balance between housing supply and demand. The seasonally adjusted number of months of inventory stood at six months at the end of April on a national basis, up from 5.7 months in the previous month.
The national average price for homes sold in April 2011 was $372,544, up eight per cent from the same month last year. April marked the third consecutive month in which the national average price was up by eight per cent from year-ago levels.
The national average price has been skewed in recent months due to surging multi-million dollar property sales in selected areas of Greater Vancouver. Demand for these properties moderated in April from the previous month. A reduction in this source of upward skewing for the national average price was offset by fewer sales of lower priced properties.
“Changes to mortgage regulations that took effect in April 2011 likely sidelined a number of first-time homebuyers,” said Klump. “By contrast, higher end home sales in Greater Vancouver and Toronto had their best April ever.”
Copyright CREA reprinted with permission
Sunday, May 22, 2011
Flexible Down Payment Options
With interest rates still sitting near historically low levels – with nowhere to go but up – now is an ideal time for first-time homebuyers to embark upon homeownership.
But if low interest rates still don’t tip the scales on your decision to enter the property market, perhaps the information below will.
Down payment
The main reason many renters feel they can’t afford to purchase a home has to do with saving for a 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. The only catch, however, is that you must remain with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.
Under the RRSP Home Buyers’ Plan, first-time homebuyers can withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.
And if there’s a couple making a home purchase together, they can each withdraw up to $25,000 from their RRSPs.
Making an informed decision
There’s an endless amount of information available to prospective homeowners – through the Internet, friends, family members and anyone willing to voice their opinion on a given subject. What you need, therefore, is education and coaching as opposed to being bombarded with more information.
That’s why it’s important to speak to a real estate agent and a mortgage professional in order to get a pre-approval prior to setting out home shopping. This will help set your mind at ease, because many first-time buyers are overwhelmed by the financing and buying processes, and often don’t know what it truly costs to purchase a home. Real estate and mortgage professionals can provide you with real examples that can go a long way in showing you what it really costs to buy a home in your area versus what you’re currently paying in rent.
You may be pleasantly surprised by how manageable it is to start building equity in your own property as opposed to helping pay someone else’s mortgage each month!
But if low interest rates still don’t tip the scales on your decision to enter the property market, perhaps the information below will.
Down payment
The main reason many renters feel they can’t afford to purchase a home has to do with saving for a 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. The only catch, however, is that you must remain with the original lender for the full initial five-year term or else you’ll have to pay the down payment back.
Under the RRSP Home Buyers’ Plan, first-time homebuyers can withdraw up to $25,000 from their RRSPs for a down payment – tax- and interest-free.
And if there’s a couple making a home purchase together, they can each withdraw up to $25,000 from their RRSPs.
Making an informed decision
There’s an endless amount of information available to prospective homeowners – through the Internet, friends, family members and anyone willing to voice their opinion on a given subject. What you need, therefore, is education and coaching as opposed to being bombarded with more information.
That’s why it’s important to speak to a real estate agent and a mortgage professional in order to get a pre-approval prior to setting out home shopping. This will help set your mind at ease, because many first-time buyers are overwhelmed by the financing and buying processes, and often don’t know what it truly costs to purchase a home. Real estate and mortgage professionals can provide you with real examples that can go a long way in showing you what it really costs to buy a home in your area versus what you’re currently paying in rent.
You may be pleasantly surprised by how manageable it is to start building equity in your own property as opposed to helping pay someone else’s mortgage each month!
Home Sales Slow After Strong First Quarter
The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the province declined 14 per cent to 7,187 units in April compared to the same month last year. The average MLS® residential price climbed 16 per cent to $598,308 last month compared to April 2010.
"BC home sales edged lower in April as the result of home purchases that were pulled forward during the first quarter,” said Cameron Muir, BCREA Chief Economist. “The province’s housing markets continue to exhibit a two steps forward, one step back trajectory in tandem with economic and employment growth."
Year-to-date, BC residential sales dollar volume increased 14 per cent to $15.4 billion, compared to the same period last year. Residential unit sales edged back one per cent to 26,334 units, while the average MLS® residential price rose 15.5 per cent to $586,466 over the same period.
Copyright BCREA Reprinted with permission
"BC home sales edged lower in April as the result of home purchases that were pulled forward during the first quarter,” said Cameron Muir, BCREA Chief Economist. “The province’s housing markets continue to exhibit a two steps forward, one step back trajectory in tandem with economic and employment growth."
Year-to-date, BC residential sales dollar volume increased 14 per cent to $15.4 billion, compared to the same period last year. Residential unit sales edged back one per cent to 26,334 units, while the average MLS® residential price rose 15.5 per cent to $586,466 over the same period.
Copyright BCREA Reprinted with permission
Monday, April 18, 2011
National home sales hold steady in March
OTTAWA – April 15th, 2011 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity held steady in March 2011 compared to February.
Seasonally adjusted national home sales activity in March came in one tenth of a percentage point above levels for the previous month, with stable demand in most large urban centres.
With national sales in each of the first three months of 2011 running close to their five- or ten-year monthly averages, seasonally adjusted national sales activity in the first quarter of 2011 was up 4.5 per cent from levels recorded in the fourth quarter of last year, and reached the highest quarterly level in a year.
Most of the quarterly increase in seasonally adjusted national sales activity was due to demand in Vancouver and Toronto. Recent changes to mortgage regulations may have caused a number of sales in some of Canada’s more expensive housing markets to be brought forward into the first quarter that would have otherwise occurred later in the year.
Sellers looking to trade up before changes to mortgage regulations took effect made their move early, resulting in a significant rise in newly listed homes in January and February of this year. With changes to mortgage regulations looming in March, seasonally adjusted new residential listings for the month dropped five per cent month-to-month.
Steady sales activity combined with fewer new listings tightened the national resale housing market. The national sales-to-new listings ratio, a measure of the balance between supply and demand, stood at 56.5 per cent in March. This kept the national housing market firmly entrenched in balanced territory, with March marking the firmest reading for national market balance in more than a year.
Based on sales-to-new listings ratios, more than half of local markets in Canada could be considered balanced in March, with two-thirds of the remaining markets considered to be as sellers’ markets.
“The majority of local housing markets across Canada are well balanced, but not all of them are,” said Gary Morse, CREA’s President. “Within a province or local market, the balance between resale housing supply and demand can vary widely and evolve quickly, so buyers and sellers should speak with a local REALTOR® to understand housing market trends where they live.”
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 is another measure of the balance between housing supply and demand. The seasonally adjusted number of months of inventory stood at 5.6 months at the end of March on a national basis. This was unchanged from the previous month. Almost half of all local markets saw the number of months of inventory shrink compared to the previous month.
Throughout the first quarter of 2011, the national average price was skewed higher by strong activity in a few pricey areas of Greater Vancouver. March 2011 was no exception, with an increase of 8.9 per cent year-over year.
“A record number of multi-million dollar property sales in Richmond and Vancouver West are pushing up average prices for Greater Vancouver, British Columbia and nationally,” stated Gregory Klump, CREA’s Chief Economist. “If Vancouver is excluded from the equation, the national average price increase is cut by more than half to 4.3 per cent.”
“Looking ahead, evidence suggests that the potential rush of sales activity in March before recent changes to mortgage regulations took effect was a story that was largely focused in condo sales activity in Greater Vancouver. This confirms that the expected impact on sales activity of recent changes to mortgage regulations will likely be minor over the near term. Interest rates are now widely expected to remain on hold until at least mid-July, which is supportive for resale housing demand, market balance and prices,” Klump added.
Copyright CREA reprinted with permission
Seasonally adjusted national home sales activity in March came in one tenth of a percentage point above levels for the previous month, with stable demand in most large urban centres.
With national sales in each of the first three months of 2011 running close to their five- or ten-year monthly averages, seasonally adjusted national sales activity in the first quarter of 2011 was up 4.5 per cent from levels recorded in the fourth quarter of last year, and reached the highest quarterly level in a year.
Most of the quarterly increase in seasonally adjusted national sales activity was due to demand in Vancouver and Toronto. Recent changes to mortgage regulations may have caused a number of sales in some of Canada’s more expensive housing markets to be brought forward into the first quarter that would have otherwise occurred later in the year.
Sellers looking to trade up before changes to mortgage regulations took effect made their move early, resulting in a significant rise in newly listed homes in January and February of this year. With changes to mortgage regulations looming in March, seasonally adjusted new residential listings for the month dropped five per cent month-to-month.
Steady sales activity combined with fewer new listings tightened the national resale housing market. The national sales-to-new listings ratio, a measure of the balance between supply and demand, stood at 56.5 per cent in March. This kept the national housing market firmly entrenched in balanced territory, with March marking the firmest reading for national market balance in more than a year.
Based on sales-to-new listings ratios, more than half of local markets in Canada could be considered balanced in March, with two-thirds of the remaining markets considered to be as sellers’ markets.
“The majority of local housing markets across Canada are well balanced, but not all of them are,” said Gary Morse, CREA’s President. “Within a province or local market, the balance between resale housing supply and demand can vary widely and evolve quickly, so buyers and sellers should speak with a local REALTOR® to understand housing market trends where they live.”
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 is another measure of the balance between housing supply and demand. The seasonally adjusted number of months of inventory stood at 5.6 months at the end of March on a national basis. This was unchanged from the previous month. Almost half of all local markets saw the number of months of inventory shrink compared to the previous month.
Throughout the first quarter of 2011, the national average price was skewed higher by strong activity in a few pricey areas of Greater Vancouver. March 2011 was no exception, with an increase of 8.9 per cent year-over year.
“A record number of multi-million dollar property sales in Richmond and Vancouver West are pushing up average prices for Greater Vancouver, British Columbia and nationally,” stated Gregory Klump, CREA’s Chief Economist. “If Vancouver is excluded from the equation, the national average price increase is cut by more than half to 4.3 per cent.”
“Looking ahead, evidence suggests that the potential rush of sales activity in March before recent changes to mortgage regulations took effect was a story that was largely focused in condo sales activity in Greater Vancouver. This confirms that the expected impact on sales activity of recent changes to mortgage regulations will likely be minor over the near term. Interest rates are now widely expected to remain on hold until at least mid-July, which is supportive for resale housing demand, market balance and prices,” Klump added.
Copyright CREA reprinted with permission
Bank of Canada holds key rate at 1%
Signals potential interest rate hikes ahead
The Bank of Canada held its trend setting Bank rate at 1.25 per cent on April 12, 2011. This marks the fifth consecutive policy rate announcement for which interest rates have been kept on hold.
The Bank acknowledged broadening global inflationary pressures and that Canadian economic growth has come in stronger than it predicted in its January Monetary Policy Report (MPR). It also said its April MPR updates the Bank’s inflation outlook, with inflation in Canada now expected to rise to its two per cent inflation by mid-2012. This is two quarters earlier than the Bank predicted in its previous MPR.
While interest rates are widely expected to rise this year to keep inflation under wraps, language used in the April policy rate announcement may be interpreted by financial market economists as a signal that the Bank will resume raising interest rates at its next policy interest rate announcement on May 31, 2011.
However, the Bank said “the persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy, putting additional downward pressure on inflation through weaker-than-expected net exports and larger declines in import prices.” These downside risks to inflation give the Bank some latitude as to when it will resume raising interest rates, since it will take time to gauge the impact that a strong Canadian dollar will have on near-term economic growth.
The Bank said it still expects consumer spending to slow to a rate more broadly in line with after-tax income, but thinks it could be stronger than it previously predicted due to wealth from continued home price increases, the rebound in the stock market, higher prices for commodity exports, and lower import prices due to a stronger Canadian dollar.
By keeping its trend-setting policy interest rates where they are, interest rates remain very positive for Canadian economic growth. Moreover, the Bank reiterated its statement that “any further reduction in monetary policy stimulus would need to be carefully considered.” This suggests the Bank’s continued intention not to make any sudden moves on interest rates.
As of April 12, 2011, the advertised five-year lending rate stood at 5.69 per cent. This is up a quarter of a percentage point from 5.44 per cent on March 1st, when the Bank made its previous policy interest rate announcement.
The Bank will make its next scheduled rate announcement on May 31st, 2011
(CREA 04/12/2011)
The Bank of Canada held its trend setting Bank rate at 1.25 per cent on April 12, 2011. This marks the fifth consecutive policy rate announcement for which interest rates have been kept on hold.
The Bank acknowledged broadening global inflationary pressures and that Canadian economic growth has come in stronger than it predicted in its January Monetary Policy Report (MPR). It also said its April MPR updates the Bank’s inflation outlook, with inflation in Canada now expected to rise to its two per cent inflation by mid-2012. This is two quarters earlier than the Bank predicted in its previous MPR.
While interest rates are widely expected to rise this year to keep inflation under wraps, language used in the April policy rate announcement may be interpreted by financial market economists as a signal that the Bank will resume raising interest rates at its next policy interest rate announcement on May 31, 2011.
However, the Bank said “the persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy, putting additional downward pressure on inflation through weaker-than-expected net exports and larger declines in import prices.” These downside risks to inflation give the Bank some latitude as to when it will resume raising interest rates, since it will take time to gauge the impact that a strong Canadian dollar will have on near-term economic growth.
The Bank said it still expects consumer spending to slow to a rate more broadly in line with after-tax income, but thinks it could be stronger than it previously predicted due to wealth from continued home price increases, the rebound in the stock market, higher prices for commodity exports, and lower import prices due to a stronger Canadian dollar.
By keeping its trend-setting policy interest rates where they are, interest rates remain very positive for Canadian economic growth. Moreover, the Bank reiterated its statement that “any further reduction in monetary policy stimulus would need to be carefully considered.” This suggests the Bank’s continued intention not to make any sudden moves on interest rates.
As of April 12, 2011, the advertised five-year lending rate stood at 5.69 per cent. This is up a quarter of a percentage point from 5.44 per cent on March 1st, when the Bank made its previous policy interest rate announcement.
The Bank will make its next scheduled rate announcement on May 31st, 2011
(CREA 04/12/2011)
Two Speed Market Continues for BC Home Sales
Vancouver, BC – April 18, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province continued to climb higher in March. Compared to March of 2010, MLS® residential unit sales increased 11.5 per cent to 8,600 units. The average MLS® residential price rose 15 per cent to $594,157 in March compared to the same month last year.
"We continue to observe a two-speed market in BC, with surging consumer demand in Metro Vancouver overshadowing more moderate demand in other regions," said Cameron Muir, BCREA Chief Economist. "Vigorous consumer demand drove Greater Vancouver to its most active March since 2004, while the Fraser Valley had its strongest March in four years. Conversely, sales activity in other BC markets is expanding at a pace more inline with overall economic growth."
Year-to-date, BC residential sales dollar volume increased 21 per cent to $11.14 billion, compared to the same period last year. Residential unit sales increased 4.7 per cent to 19,147 units. The average MLS® residential price rose 15.4 per cent to $582,021 over the same period.
Copyright BCREA reprinted with permission
"We continue to observe a two-speed market in BC, with surging consumer demand in Metro Vancouver overshadowing more moderate demand in other regions," said Cameron Muir, BCREA Chief Economist. "Vigorous consumer demand drove Greater Vancouver to its most active March since 2004, while the Fraser Valley had its strongest March in four years. Conversely, sales activity in other BC markets is expanding at a pace more inline with overall economic growth."
Year-to-date, BC residential sales dollar volume increased 21 per cent to $11.14 billion, compared to the same period last year. Residential unit sales increased 4.7 per cent to 19,147 units. The average MLS® residential price rose 15.4 per cent to $582,021 over the same period.
Copyright BCREA reprinted with permission
Wednesday, March 9, 2011
HOME BUYING INTENTIONS REMAIN STEADY IN B.C.: RBC POLL
Interest in buying a home has remained steady in B.C. with 29 per cent of residents indicating they are likely to buy a home in the next two years, on par with the national average and equal to last year, according to the 18th annual RBC Homeownership Study.
When asked to list their top worry when planning to purchase, over one-third (34per cent) of British Columbians are most concerned with home prices increasing, the most in Canada. Having a good down payment is the top worry for 20 per cent.
“B.C.’s housing market has experienced some volatility over the past few years so it makes sense that buyers are concerned about rising prices and having the proper down payment,” said Inde Sumal, regional vice president, residential mortgages, RBC. “When making the decision to purchase a home, seeking the advice of a qualified professional can help you decide on what type of mortgage, home and savings plan is right to meet your individual needs and ownership goals.”
While more homebuyers believe it makes sense to buy a home this year (54 per cent), rather than waiting until next year (46 per cent), the gap has narrowed from 2010 (68 per cent versus 32 per cent).
Homeowners in B.C. are slightly less optimistic than last year about the price of their home, as 67 per cent feel the value of their home has increased in the past two years and 16 per cent believe that the value of their home has decreased.
New homes are gaining in popularity, as 30 per cent plan to buy a new home rather than a resale, the highest in the country and eight points above the national average. Those intending to buy a home are also looking more long-term, with almost four-in-ten (79 per cent) planning to purchase in the next one to two years rather than right now. Almost half (48 per cent) of the province believes that it’s a buyers market, which is eight points above the national average.
British Columbians indicate they are looking buy the following types of homes according to the 18th Annual RBC Homeownership Poll:
• Detached house 54 per cent
• Condo/loft 17 per cent
• Semi detached house 11 per cent
• Townhouse 13 per cent
Royal Bank of Canada March 9, 2011
When asked to list their top worry when planning to purchase, over one-third (34per cent) of British Columbians are most concerned with home prices increasing, the most in Canada. Having a good down payment is the top worry for 20 per cent.
“B.C.’s housing market has experienced some volatility over the past few years so it makes sense that buyers are concerned about rising prices and having the proper down payment,” said Inde Sumal, regional vice president, residential mortgages, RBC. “When making the decision to purchase a home, seeking the advice of a qualified professional can help you decide on what type of mortgage, home and savings plan is right to meet your individual needs and ownership goals.”
While more homebuyers believe it makes sense to buy a home this year (54 per cent), rather than waiting until next year (46 per cent), the gap has narrowed from 2010 (68 per cent versus 32 per cent).
Homeowners in B.C. are slightly less optimistic than last year about the price of their home, as 67 per cent feel the value of their home has increased in the past two years and 16 per cent believe that the value of their home has decreased.
New homes are gaining in popularity, as 30 per cent plan to buy a new home rather than a resale, the highest in the country and eight points above the national average. Those intending to buy a home are also looking more long-term, with almost four-in-ten (79 per cent) planning to purchase in the next one to two years rather than right now. Almost half (48 per cent) of the province believes that it’s a buyers market, which is eight points above the national average.
British Columbians indicate they are looking buy the following types of homes according to the 18th Annual RBC Homeownership Poll:
• Detached house 54 per cent
• Condo/loft 17 per cent
• Semi detached house 11 per cent
• Townhouse 13 per cent
Royal Bank of Canada March 9, 2011
Preparing Your Home for Sale
When getting your home ready to sell, you need to look at your house in a new way. Think of your house as a product about to go on the market where it is probably competing with brand new housing. It needs to show well – which means clutter-free and well kept.
Today’s homebuyers lead busy lives and may not be interested in taking on major repairs or improvements upon moving in. You need to make your house a “10”. This document will help you spot what is right and what is not so good about your "product". It will give you the opportunity to take corrective action to ensure your house looks fresh, clean and well maintained when the “For Sale” sign goes up.
Fix It First
If you need to make improvements to your home, do the work before it goes on the market. Potential buyers are not interested in hearing about your good intentions to look after defects before a transfer of ownership takes place. Even if fix-up work is underway, buyers may not be able to visualize what your home will look like when the work is finished. They will just remember it being in a state of disrepair.
Professional Inspection: Yes or No?
A serious buyer may want to have a professional home inspector check your house from top to bottom before making an offer. Even though this guide will help you identify problems on your own, the option of hiring a professional home inspector is open to you as well. If you can afford it, an inspection in advance of putting your home on the market is a good idea. It is your best way of finding and taking care of serious deficiencies before an inspector hired by a potential buyer discovers them.
Today’s homebuyers lead busy lives and may not be interested in taking on major repairs or improvements upon moving in. You need to make your house a “10”. This document will help you spot what is right and what is not so good about your "product". It will give you the opportunity to take corrective action to ensure your house looks fresh, clean and well maintained when the “For Sale” sign goes up.
Fix It First
If you need to make improvements to your home, do the work before it goes on the market. Potential buyers are not interested in hearing about your good intentions to look after defects before a transfer of ownership takes place. Even if fix-up work is underway, buyers may not be able to visualize what your home will look like when the work is finished. They will just remember it being in a state of disrepair.
Professional Inspection: Yes or No?
A serious buyer may want to have a professional home inspector check your house from top to bottom before making an offer. Even though this guide will help you identify problems on your own, the option of hiring a professional home inspector is open to you as well. If you can afford it, an inspection in advance of putting your home on the market is a good idea. It is your best way of finding and taking care of serious deficiencies before an inspector hired by a potential buyer discovers them.
BC Commercial Real Estate Market to Strengthen
Vancouver, BC – February 28, 2011. The BC commercial real estate market should continue to strengthen through 2011, according to the new Commercial Leading Indicator (CLI) index developed by the British Columbia Real Estate Association (BCREA). The BCREA CLI rose 2.3 per cent in the fourth quarter of 2010 to an index level of 110.5, marking seven straight quarters of improvement.
The CLI peaked at a level of 115.9 in the second quarter of 2007 before the onset of the financial crisis pushed it to a low of 100.1 in the first half of 2009. In 2010, the index posted a more material recovery, albeit from a relatively weak level, and is still 5.3 per cent below its peak.
“Economic indicators that tend to lead activity in the commercial real estate market have posted strong growth over several consecutive quarters,” said Brendon Ogmundson, BCREA Economist. “Based on these macro-level indicators, we would anticipate 2011 to be a strong year for the commercial sector.”
Copyright BCREA reprinted with permission
The CLI peaked at a level of 115.9 in the second quarter of 2007 before the onset of the financial crisis pushed it to a low of 100.1 in the first half of 2009. In 2010, the index posted a more material recovery, albeit from a relatively weak level, and is still 5.3 per cent below its peak.
“Economic indicators that tend to lead activity in the commercial real estate market have posted strong growth over several consecutive quarters,” said Brendon Ogmundson, BCREA Economist. “Based on these macro-level indicators, we would anticipate 2011 to be a strong year for the commercial sector.”
Copyright BCREA reprinted with permission
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