Collingwood_Area_REAL ESTATE - BLOG

Posted on 24. February 2010 07:07 by Jonathan Knight

Low inventory levels set stage for heated Spring market in most major Canadian centres, says RE/MAX

Active listings down in 81 per cent of markets in January

Mississauga, ON (February 24, 2010) - Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.

The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.

"There have never been so many motivating factors in play at once," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "We're in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."

Posted on 19. February 2010 05:17 by Jonathan Knight

 

Much has been reported in the media about how the Competition Bureau has decided to bring a case to the Competition Tribunal alleging that the rules of The Canadian Real Estate Association (CREA) governing MLS® Systems are anti-competitive, restrict consumer choice and prevent innovation in the market for residential real estate. Let us be very clear: CREA’s rules are not anti-competitive, and CREA is confident that the Competition Tribunal will rule against the Commissioner of Competition following a hearing on the merits.

It is important when considering these issues to move beyond the sound bites and consider the facts: CREA currently has more than 98,000 members operating independently across the country, competing on a daily basis for the business of Canadian consumers. There are more consumer choices and more business models today than ever before - and that is a good thing. Consumers can negotiate the level of service they want and the fees or commission they will pay for that service.

What hasn’t changed – and cannot change to ensure the integrity of MLS® Systems which operate across the country - is the need for accurate and reliable information to be provided for use in MLS® Systems and a commitment by REALTORS® using MLS® Systems to comply with a code of ethics and regulatory requirements across the country. These basic requirements are necessary for the continued reliability of the MLS® System which Canadians have come to trust for years and years.

The fact that a home is listed on a real estate Board’s MLS® System provides an assurance to the public that the information regarding properties listed on Boards’ MLS® Systems is accurate and reliable and that there is professional involvement and accountability for that information - all of which protects the interests of homebuyers and sellers. This System provides consumers with not only choice, but also confidence, as they engage in one of the biggest and most important financial transactions of their lives.

The MLS® System is a cooperative marketing network established by REALTORS® several decades ago to help the public buy and sell real estate. MLS® Systems are member-to-member services, paid for by the REALTOR® members of a local Board or Association. It is the local real estate Board or Association that actually administers and operates each MLS® System across Canada. CREA owns the trademark and licenses its use to boards and associations. REALTOR.ca is simply an advertising website operated by CREA and competing with other websites on which properties are advertised by home sellers and REALTORS®. .

There have been numerous reports over the last several days that as a result of the Bureau’s actions commission rates will come down. The fact is that CREA’s rules have nothing to do with commission rates. CREA does not dictate or determine commission rates – or tell its members what business model to choose or how to run their businesses. The mythical "fixed commission rate" does not exist: any transaction between a REALTOR® and a home seller or buyer is subject to negotiation. In CREA’s view, consumer choice is a good thing and the market should decide.

CREA is proud of its members and the service they provide Canadians in a competitive environment. There should be no doubt that CREA’s ultimate interest and that of its members is to ensure that consumers continue to have choice and confidence in a vibrant, competitive market.

Posted on 17. February 2010 05:45 by Jonathan Knight

OTTAWA – February 17th, 2010 –

According to statistics released by The Canadian Real Estate Association, the

number of homes sold through the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards

declined in January 2010 from the previous month.

Seasonally adjusted national home sales dropped 2.8 per cent from near record levels reported in December.

Ontario accounted for about half the national decline. Activity was also down in British Columbia, Alberta, and

Manitoba, but reached new heights in Quebec.

Actual (not seasonally adjusted) residential sales activity in January 2010 was up 58 per cent from year ago levels,

when national home sales activity reached the lowest level in a decade. Because activity began recovering

in February last year, large year-over-year gains are expected to shrink over upcoming months.

The average price of all homes sold through the MLS® Systems of Canadian real estate Boards in January 2010

was $328,537, up 19.6 per cent from one year ago. In January 2009, the average residential sale price fell to the

lowest level in almost three years. Year-over-year average price gains are being stretched by weakness one year

ago, and are expected to shrink beginning next month.

The price trend is similar but less dramatic for the national weighted average price, which compensates for

changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock.

It climbed 14.9 per cent year-over-year basis in January 2010.

The residential average price in Canada’s major markets also climbed 19.6 per cent year-over-year in January. As

with the national counterpart, the price trend is similar but less dramatic for the major market weighted average

price, which rose 13.1 from January 2009.

Across Canada, the seasonally adjusted number of new listings on Boards’ MLS® Systems edged up threetenths

of one percent on a month-over-month basis in January to reach the highest level since November 2008.

New listings rose in British Columbia, Alberta and Newfoundland, offsetting declines in other provinces. The actual

(not seasonally adjusted) number of new residential listings was up 3.4 per cent from one year ago.

“The resale housing market is becoming more balanced in a number of provinces, including my own province of

Saskatchewan,” said CREA President Dale Ripplinger. “A more balanced market is likely to result in smaller price

increases going forward, with buyers in less of a rush due to an increase in supply. That said, market conditions

vary across Canada, so buyers and sellers are wise to consult with a REALTOR® since they know current conditions

in your local market.”

Strong demand for resale homes continues to draw down supply. There were 170,199 homes listed for sale on

Boards’ MLS® Systems in Canada at the end of January 2010, a decline of 18 per cent from levels reported for

the same month in 2009.

media_Jan10rpt_e.pdf (1.19 mb)

Posted on 16. February 2010 09:30 by Jonathan Knight

... this is from TD.... KEEP smiling

 

The Honorable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians.

"Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."

The Government will therefore adjust the rules for government-backed insured mortgages as follows:

• Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
• Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
• Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.

"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.

CANADA'S HOUSING MARKET REMAINS STRONG

Canada's housing market remains healthy and stable. According to the International Monetary Fund, our housing market is fully supported by sound economic factors, such as low interest rates, rising incomes and a growing population. Moreover, mortgage arrears—overdue mortgage payments—have also remained low.

Today's announcement is part of the Government's policy of proactively adjusting to developments in the housing market that could take root and cause instability. These steps are timely, targeted and measured, and will reinforce the importance of Canadians borrowing responsibly and using home ownership as a savings mechanism.

MORTGAGE INSURANCE

Mortgage insurance (which is sometimes called mortgage default insurance) is a credit risk management tool that protects lenders from losses on mortgage loans. If a borrower defaults on a mortgage, and the proceeds from the foreclosure of the property are insufficient to cover the resulting loss, the lender submits a claim to the mortgage insurer to recover its losses.

The law requires federally regulated lenders to obtain mortgage insurance on loans in which the homebuyer has made a down payment of less than 20 per cent of the purchase price (also called high loan-to-value ratio loans). The homebuyer pays the premium for this insurance, which protects the lender if the homebuyer defaults.

The Government ultimately backs most insured mortgages in Canada. It is responsible for the obligations of Canada Mortgage and Housing Corporation (CMHC) as it is an agent Crown corporation. In order for private mortgage insurers to compete with CMHC, the Government backs private mortgage insurers' obligations to lenders, subject to a deductible equal to 10 per cent of the original principal amount of the loan.

In October 2008, the Government adjusted its minimum standards for government-backed, high-ratio mortgages, including:

• Fixing the maximum amortization period for new government-backed mortgages to 35 years.
• Requiring a minimum down payment of five per cent for new government-backed mortgages.
• Establishing a consistent minimum credit score requirement.
• Requiring the lender to make a reasonable effort to verify that the borrower can afford the loan payment.
• Introducing new loan documentation standards to ensure that there is evidence of reasonableness of property value and of the borrower's sources and level of income.

MEASURES ANNOUNCED TODAY

Today, the Government announced three changes to the standards governing government-backed mortgages.

QUALIFYING AT A FIVE-YEAR RATE

Current interest rates are at record low levels, which has improved the affordability of housing for Canadians. It is important that Canadians borrow prudently and are able to manage their debt loads when interest rates rise.

Lender and mortgage insurers look at two key ratios when assessing the ability of a borrower to make payments on a mortgage loan:

• Gross Debt Service (GDS) ratio—the ratio of the carrying costs of the home, including the mortgage payment, taxes and heating costs, to the borrower's income.
• Total Debt Service (TDS) ratio—the ratio of the carrying costs of the home and all other debt payments to the borrower's total income.

Currently, the interest rate used to determine the mortgage payment for these calculations is either the rate fixed for the term of the mortgage or, in the case of a variable-rate mortgage and mortgages with terms of less than three years, the greater of the contract rate and the prevailing three-year fixed rate.

The adjustments to the mortgage framework will require mortgage insurers to ensure that borrowers qualify for their mortgage amount using the greater of the contract rate or the interest rate for a five-year fixed rate mortgage when calculating the GDS and TDS ratios.

This measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future.

LIMIT THE MAXIMUM REFINANCING AMOUNT TO 90 PER CENT OF THE LOAN-TO-VALUE RATIO

Borrowers seeking financial flexibility can currently refinance their mortgage and increase the amount they are borrowing on the security of their home up to a limit of 95 per cent of the value of the property. This type of refinancing lowers the borrower's equity in their home. The adjustments today will lower the maximum amount of the mortgage loan in a refinancing of a government-backed high ratio mortgage loan to 90 per cent of the value of the property, consistent with the principle that home ownership is a tool for savings.

DISCOURAGING SPECULATION BY REQUIRING A MINIMUM DOWN PAYMENT OF 20 PER CENT FOR NON-OWNER-OCCUPIED PROPERTIES

This measure will require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. Currently, borrowers may purchase a residential property with a 5 per cent down payment. Today's change will require a 20 per cent down payment for small (i.e., 1- to 4-unit) non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (e.g., borrowers purchasing a duplex to live in one unit and rent out the other) will still be able to access government-backed mortgage insurance with a 5 per cent down payment.

MOVING TO THE NEW FRAMEWORK

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010. Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010.

 

 

Posted on 9. February 2010 09:57 by Jonathan Knight

 

The Canadian Real Estate Association has revised its forecast for home sales via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards in 2010, and extended the forecast to 2011.

With Canadian economic growth rebounding from the recession, the unusually severe decline in sales activity in early 2009 is not expected to recur in 2010. Annual activity in 2010 is forecast to be well above the previous year’s level as a result.

CREA forecasts national activity will reach 527,300 units in 2010, up 13.3 per cent from 2009. This would represent a new annual record, standing 1.2 per cent above the previous peak in 2007. Low interest rates are expected to boost housing demand in the first half of the year, resulting in strong annual sales growth in nearly all provinces in 2010, led by British Columbia and Ontario.

National home sales activity is expected to remain strong in the first half of 2010, fuelled by low interest rates and homebuyers motivated to avoid the HST before it comes into effect in Ontario and British Columbia. Over the second half of the year, national activity is expected to trend downward as the last of pent-up demand is exhausted, interest rates begin rising, and the HST comes into effect in Ontario and British Columbia.

Interest rate increases will contribute to weaker national sales activity in 2011. National MLS® home sales activity is forecast to decline 7.1 per cent to 490,100 units in 2011, putting it on par with annual levels reported in 2005 and 2006.

"Although interest rates are expected to rise, they will still be low enough to keep affordability within reach for many homebuyers requiring mortgage financing, and support overall housing demand," said CREA President Dale Ripplinger.

The national MLS® average home price is forecast to climb 5.4 per cent in 2010, reaching a record $337,500, with average price gains forecast in all provinces. The national average price increase will continue to reflect upward skewing from the rebound in activity among Canada’s priciest markets, particularly in British Columbia and Ontario.

The national average price is forecast to ease by 1.5 per cent in 2011. Modest average price gains are forecast for all provinces except British Columbia and Ontario, whose share of national activity is expected to ease. The shift in the contribution made by provinces toward national activity will continue skewing the annual comparison in the national average price in 2011.

The price trend is similar but less dramatic for the weighted national average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national average price is forecast to climb 4.8 per cent in 2010, and remain stable in 2011.

"Improved financial market stability and recovering global economic growth mean that home sales activity in 2010 is unlikely to repeat the dive it experienced in late 2008 and early 2009," said Chief Economist Gregory Klump.

"Fiscal restraint, a strong Canadian dollar and a subdued inflation outlook point to marginal interest rate increases over the next couple of years, especially if the U.S. economic recovery proves to be weak and protracted," said Klump.

"The Bank of Canada will need time to gauge the effect of interest rate increases on Canadian economic growth," Klump said. "It recognizes that consumer debt burdens are running high, so it will want to gauge the impact of interest rate hikes on domestic demand and overall economic growth. Changes in interest rates impact the economy with a lag, so the timing and magnitude of interest rate hikes will be tricky, given that the Bank expects the private sector to lead economic growth once temporary government stimulus spending expires," he added.

"The decline and subsequent rebound in sales activity for homes in the upper price spectrum in some of Canada's priciest markets skewed average prices upward in the second half of 2009 and into 2010. This segment of housing activity in Ontario and British Columbia is expected to ease beginning in the second half of 2010, causing average prices to moderate in those provinces," said Klump.

"A downward trend in national sales activity combined with an increase in listings will result in a more balanced market. Although builders are understandably more upbeat than they were during the depth of the recession, speculative building will likely continue to be held in check. As a result, while the real estate market will become more balanced, Canada will continue to avoid the massive realignment in housing supply and demand experienced in the U.S."

CREA MLS® Residential Market Forecast: MLS® residential unit sales forecast   MLS® residential unit sales forecast MLS® residential unit sales forecast	2009	2009 Annual percentage change	2010 Forecast	2010 Annual percentage change	2011 Forecast	2011 Annual percentage change
Canada	465,251	7.7	527,300	13.3	490,100	-7.1
British Columbia	85,028	23.4	101,900	19.8	88,800	-12.9
Alberta	57,786	2.5	63,050	9.1	64,000	1.5
Saskatchewan	10,856	6.5	10,900	0.4	11,050	1.4
Manitoba	13,086	-3.2	14,050	7.4	14,350	2.1
Ontario	195,840	8.2	223,700	14.2	200,300	-10.5
Quebec	79,290	3.3	87,950	10.9	85,450	-2.8
New Brunswick	7,003	-7.3	7,550	7.8	7,700	2.0
Nova Scotia	10,021	-7.8	11,400	13.8	11,500	0.9
Prince Edward Island	1,404	-0.6	1,450	3.3	1,450	0.0
Newfoundland	4,416	-5.9	4,900	11.0	5,050	3.1

Posted on 9. February 2010 09:55 by Jonathan Knight

 

The Canadian Real Estate Association (CREA) learned today that the Competition Bureau filed a Notice of Application with the Competition Tribunal against CREA.

"CREA views the Commissioner’s decision as surprising and disappointing," said Dale Ripplinger, President of CREA. "We do not agree with the Bureau’s position that certain CREA rules are anti-competitive, either as a matter of fact or as a matter of law. CREA’s rules allow for innovative business models and provide a broad range of choice for consumers."

In good faith, CREA engaged in settlement negotiations with the Competition Bureau for several months in an effort to arrive at a consensual resolution. Unfortunately, the parties were unable to reach an agreement. This is very disappointing, since CREA has consistently indicated - right from the outset - that it has always been prepared to work with the Competition Bureau to revise its rules to clarify the way the rules operate.

Last week, CREA advised the Commissioner of Competition that CREA had made the business decision to move forward with rule changes to address the issues raised by the Bureau, whether or not a settlement with the Bureau could be reached.

"In making these clarifications on a proactive basis, CREA believes that it is fully addressing the Competition Bureau’s concerns, while ensuring the accuracy and quality of MLS^{® information that Canadians have come to trust and REALTOR® compliance with a code of ethics" said Ripplinger.}

The Commissioner's press release states that CREA's rules restrict consumer choice and prevent innovative business models. That is simply false. CREA is disappointed that the Bureau would make this statement in view of the months of discussions about CREA's rules and CREA's consistent position that its rules are not intended to and do not restrict any business models.

The real estate industry in Canada is highly competitive and thrives on small businesses with independent agents, brokers and franchises conducting a wide variety of transactions every day. CREA currently has more than 98,000 members operating independently across the country to compete for consumer business, offering a wide array of services and pricing structures.

"CREA’s interest and that of its members is to ensure consumers have choice, that they are protected during one of the most significant transactions they will undertake, and that the integrity of the MLS® system is preserved for the benefit of REALTORS® and the Canadian public" added Ripplinger.

Posted on 15. January 2010 07:30 by Jonathan Knight

 

 

 

 

 

 

OTTAWA – January 15th, 2010 –

 

Existing home sales activity reached the highest level ever for the month of

December, according to statistics released by The Canadian Real Estate Association. Strong demand in the

second half of 2009, especially in the fourth quarter, pushed annual sales above 2008 levels.

Residential sales activity via the Multiple Listing Service® (MLS®) of Canadian real estate boards numbered

27,744 units in December 2009. This stands 72 per cent above activity in December 2008, when activity

dropped to the lowest level in a decade. New records for the month of December were reported in Ontario,

Quebec, Saskatchewan, New Brunswick, and Newfoundland & Labrador.

Seasonally adjusted national home sales totalled 46,805 units in December, capping the strongest fourth

quarter period ever. A total of 137,957 homes traded hands on a seasonally adjusted basis in the fourth quarter

of 2009. This is up 2.6 per cent from the previous record set in the first quarter of 2007. New quarterly

records were set in British Columbia, Ontario, and Quebec.

National sales activity began 2009 on a weak footing. Despite year-over-year increases in the second and

third quarters of the year, year-to-date activity was still trailing 2008 levels at the end of September 2009.

A 59 per cent year-over-year gain in the fourth quarter of 2009 pushed sales activity above annual levels

for 2008.

“Sales activity in 2009 came in like a lamb and went out like a lion,” said CREA President Dale Ripplinger.

“The continuation of unusually low interest rates may keep national sales activity near current levels over the

coming months, as will a blip in housing demand in Ontario and British Columbia from homebuyers motivated

to beat the introduction of the HST.”

Annual activity in 2009 was down 10.7 per cent from the peak reached in 2007. A total of 465,251 homes

traded hands through the MLS® systems of real estate boards in Canada in 2009. This is up 7.7 per cent

from 2008 levels, and represents the fourth highest level on record for annual activity.

The national residential average price was $337,410 in December, up 19 per cent year-over-year. On an annual

basis, average price climbed five per cent to a record $320,333. Average prices set new annual records

in a majority of local markets in 2009, and in every province except Alberta.

The large year-over-year increase in the national average price in December reflects the high degree to which

it was skewed downward in late 2008 by unusually low activity in Canada’s priciest markets. The national

average price was also skewed upward by rebounding activity in the spring and summer months of 2009.

The national average price rose to unprecedented heights at that time, despite records having been set in

only a small number of local markets.

2009 resale housing market ends on a high note

The contribution of activity by higher priced markets

toward the national average price has recently returned

to more typical levels. Record level average

prices in most regions are now driving the national

average price to new heights.

The price trend is similar but less dramatic for the national

weighted average price, which compensates

for changes in provincial sales activity by taking into

account provincial proportions of privately owned

housing stock. It climbed 3.6 per cent in 2009.

The residential average price in Canada’s major markets

was up 5.5 per cent year-over-year to $348,840

in 2009. As with the national counterpart, the price

trend is similar but less dramatic for the major market

weighted average price, which rose 2.3 per cent from

2008 levels.

Strong demand and headline average price gains are

drawing more sellers to the market. New listings coming

onto Boards

 

 

'

MLS® Systems across Canada rose to

the highest level on record for the month of December,

with a total of 33,090 residential properties coming on

stream. This is up 4.8 per cent from December 2008,

the first year-over-year gain in a year. On a seasonally

adjusted basis, new listings rose by 4.7 per cent in December

2009 compared to the previous month.

The recent rising trend in new listings has not yet offset

the steep decline in the number of new listings during

the first half of 2009. As a result, new listings in 2009

were down 12.6 per cent from the annual peak in 2008.

Despite the recent rise in new listings, strong demand for resale housing continues to draw down inventories.

There were 154,264 homes listed for sale on Boards’ MLS® Systems in Canada at the end of December 2009,

a decline of 22 per cent from levels reported one year ago.

Nationally, there were 4.1 months of inventory in December 2009 on a seasonally adjusted basis. This is the lowest

level in more than two years.

*Aggregate of sales in Canada's 10 most expensive markets as a

percentage of national sales. Based on the 10 markets with the

highest annual average price in 2009: Vancouver BC, Fort

McMurray AB, Victoria BC, Oakville-Milton ON, Fraser Valley BC,

Toronto ON, Calgary AB, Okanagan-Mainline BC, Muskoka &

Haliburton ON, and Edmonton AB.

The actual (not seasonally adjusted) number of months of inventory in December 2009 stood at 5.6 months, the

lowest December figure since 2005, and well below the same month in 2008 (12.3 months). Although up slightly

from November (five months), an increase is normal at this time of year since demand normally eases relative

to supply over autumn and winter months. The number of months of inventory is the number of months it would

take to sell current inventories at the current rate of sales activity.

“CREA’s latest statistics will no doubt spark further bubble talk amongst the usual suspects,” said CREA Chief

Economist Gregory Klump. “Cooler heads recognize that many of the recent gains reflect temporary factors that

could fade by summer.”

“The extraordinary decline in activity one year ago and subsequent rebound, particularly for higher-priced real

estate, is stretching current year-over-year comparisons,” he said. “By the second half of 2010, price gains are

likely to shrink significantly, since a year will have elapsed since the decline and rebound.” Klump added that,

“Further expected increases in supply will also take some steam out of the market. A more balanced market will

result in smaller price increases in the second half of the year, but a massive decline in demand similar to what

we saw in late 2008 and early 2009 seems as unlikely as a massive spike in supply.”

PLEASE NOTE: The information contained in this news release combines both major market and

national MLS

 

 

®

sales information from the previous month. The Canadian Real Estate Association has

previously released these separately.

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.

MLS

 

 

®

is a co-operative marketing system 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 96,000 REALTORS® working through more than 100 real estate Boards and

Associations. Further information can be found at

 

 

www.crea.ca.

Posted on 6. January 2010 17:24 by Jonathan Knight

 

The fourth quarter of 2009 (Q4 2009) exhibited strong sales activity throughout most segments of the region, with Q4 2009 sales revenue more than double that of Q4 2008 sales totaling $127,503,080.

Historically low mortgage rates, strong consumer confidence and a good selection of properties available during the fourth quarter resulted in many buyers realizing it was the time to buy, assisted by their local REALTOR®.

As reflected in the chart above, the number of new MLS® listings in the fourth quarter for the Georgian Triangle Real Estate Board (which includes the municipalities of Collingwood, Wasaga Beach, Clearview, Blue Mountains, Grey Highlands and Meaford) totaled 1,091 units, down from 1,232 units (or 11%) Q4 2009 versus Q4 2008. Unit sales activity in the fourth quarter rose sharply from the 4

 

th

quarter of last year with 469 properties changing hands this year versus 258 in the fourth quarter of 2008, an increase of 82%.

During the fourth quarter, sales increased in virtually every price range. Property sales under $250,000 increased 56% over Q4 2008. Fourth quarter sales in 2009 between $250,000-500,000 increased 132%; sales from $500,000-$1 million increased 119% while sales over $1 million totaled 3 properties versus none in the fourth quarter of 2008.

Year-to-date 2009 sales revenue of $484,646,974 represents a 10% increase over 2008 and was merely 15% below 2007’s record sales of $571,338,700. 2009 YTD unit sales totaled 1,857 properties up 8% from the 1,720 properties sold in 2008. The total number of new listings in 2009 totaled 5,875, down 2% from the 6,000 new listings that came to market in 2008. Conversely, the number of expired listings in 2009 increased by 6% to 3,112 units, reflecting the strong competition amongst sellers that exists in the marketplace combined with buyers’ unwillingness to overpay. While market conditions are expected to continue to improve in 2010, those sellers contemplating listing their property in the months ahead are encouraged to consult a local REALTOR® to obtain a qualified evaluation of their home. Doing so will ensure your property is

 

in

the market, not just on the market.

For more in depth analysis of a specific municipality, contact your Local REALTOR® of the Georgian Triangle Real Estate Board.

Information provided by the Georgian Triangle Real Estate Board, copyright 2009. E&OE.

 

 

Posted on 21. December 2009 08:34 by Jonathan Knight

OTTAWA -- The federal government is ready to clamp down further on mortgage rules if the boom in the Canadian housing market turns into a bubble, says Finance Minister Jim Flaherty.

 

In an exclusive interview with Canwest News Service and Global National, Mr. Flaherty said the government is closely monitoring the red-hot housing market for signs that it is reaching "irrational" levels.

 

"The reality is we have low mortgage rates . . . so we can expect some upward pressure on housing," he said. "That's OK, as long as it doesn't become a bubble. We're watching that."

 

If necessary, the government is prepared to further tighten the conditions under which the Canada Mortgage Housing Corporation insures mortgages, the finance minister said.

 

In July 2008, amid the fallout from the subprime mortgage crisis in the United States, the Finance Department announced that CMHC would shorten the maximum amortization period that it will accept to 35 years from 40, as well as require a down payment of at least 5% of the value of the home. The new rules, which came into effect in October 2008, effectively made it more difficult for prospective homeowners to receive government-backed mortgages.

 

"If we have to, we'll do what we did last year and limit the rate of amortization further than we already did, and require higher down payments," said Mr. Flaherty.

 

His remarks come as some leading private-sector economists warn that the housing market might be getting ahead of itself amid a relatively modest recovery. In a recent report, Bay Street economist David Rosenberg estimated that housing prices are overvalued by as much as 15 to 35%. This week, the Canadian Real Estate Association reported that sales of existing homes spiked 73% year-over-year in November, while the national average sale price rose 19%.

 

"If being 15% to 35% overvalued isn't a bubble, then it's the next closest thing," said Mr. Rosenberg, chief economist for investment firm Gluskin Sheff.

 

In recent weeks, Bank of Canada governor Mark Carney has expressed concern about the amount of debt that Canadian households have been racking up since the central bank cut its benchmark lending rate to near zero. Mr. Flaherty also wants to remind Canadians that the easy money won't last forever.

 

"Interest rates are at historic lows. They are naturally going to go up," said Mr. Flaherty. "People have to make sure that the mortgage on their home that they've put on today will be affordable at higher interest rates in the future."

 

The discussion of a potential housing bubble shows how much the economic climate has improved since the end of 2008, when it was still unclear how the world would pull out of the global financial crisis.

 

Looking back, Mr. Flaherty said the turning point was a meeting of the G7 finance ministers and central bankers in October 2008, where, after "a lot of finger-pointing by the Europeans at the Americans," they agreed to backstop the world's financial system.

 

"We were in a situation, where the markets might not open on Monday, where banks were failing in Germany, in the United Kingdom, in the United States," the finance minister recalled. "It was quite scary,"

 

In January's federal budget, Mr. Flaherty announced the government would pump $61-billion in public funds into the economy over two years, the biggest stimulus package in Canadian history.

 

Mr. Flaherty once again predicted that next year's budget will consist largely of the second year of the stimulus plan.

 

"Some of the stimulus items can be tweaked, certainly, but Canadians ought not to expect any major new spending programs," he said. "It may be kind of a boring budget, but boring is just fine in 2010."

 

The Conservatives have repeatedly promised not to raise taxes or cut transfers to the provinces or individuals to eliminate the deficit, which is projected to hit $56-billion this fiscal year. Instead, the government plans to rely on economic growth and possibly spending restraint to make up the shortfall.

 

In a recent editorial, however, two former senior Finance officials, C. Scott Clark and Peter Devries, wrote that "any credible budget will have to include tax increases."

 

Mr. Flaherty disagrees. "The easiest thing in the world to do is raise taxes. What it does mean is you don't have to have discipline in government spending. And Canadians know that there's wasted government spending -- some degree of it."

Posted on 14. December 2009 11:09 by Jonathan Knight

.........

Amid one of the worst recessions since the Great Depression, the one safe harbour proved to be housing. Not stocks. Not bonds. Real estate.

Why? The answer is really quite simple. Canadians believe in real estate.

Housing has proven itself a resilient and tangible investment that provides both a hedge against inflation and long-term appreciation. Buyers demonstrated their commitment en masse in 2009-taking advantage of rock-bottom interest rates and greater affordability levels-to drive housing sales and/or average prices to new heights. This year's real estate performance has been nothing short of remarkable.

The surge in sales has allowed residential real estate markets to play a key role in leading Canada out of the downturn. It is estimated that a total of $46,400 in ancillary spending are generated by the average housing transaction in Canada. With 465,000 resale homes expected to change hands by year-end 2009, that represents a $21.5 billion boost to the economy-not to mention the countless jobs and tax revenue housing supports. Going forward, the real estate sector is expected to have an even greater impact.