September 1, 2009
Recreational Property Report Shows Positive Results for 2009
Did you know that 64% of Canadians dream of owning recreational property, as an investment to enjoy with family and friends? The 2009 Royal LePage Recreational Property Report found that many Canadians are favourably disposed to invest in recreational real property. “The survey showed the dream of owning a get-away property is alive and well across the country,” said Phil Soper, President of Royal LePage. “Beyond the obvious lifestyle benefits, our research demonstrates Canadians see recreational property as a smart and safe long term investment.” Survey respondents say the 3 most important features of a recreational property are peace and quiet (58%), access to utilities (50%) and 4-season use (39%). Following a reduction in sales in the latter half of 2008 and over the winter, the recreational market is showing signs of renewed interest and increased activity. This is good news for Niagara, where a sizable proportion of properties are owned as second homes, recreational properties or pre-retirement investments.
March 13, 2009
Wall Street Journal Praises Canadian Banks
Did you know that the weekend Wall Street Journal praises the Canadian banking system for its strength and stability? The WSJ explains that the key to this strength is our banks’ “limited exposure to toxic assets and their conservative mortgage lending policies.” More stringent regulatory requirements stop leverage ratios from going too high. Loan portfolios tend to be safer, with 20% down payments required unless loans are government guaranteed. Canadian banks also had stronger capital heading into the crunch, which will help them weather the recession with a healthy level of global competitiveness.
February 4, 2009
Canadian Real Estate Association Endorses Federal Budget
Did you know that the Canadian Real Estate Association (CREA) has officially endorsed federal government initiatives to stimulate the economy and home ownership? “The change announced to the popular Home Buyers’ Plan (HBP) will help Canadians who want to own their own home,” said CREA President Calvin Lindberg. The HBP will now allow first-time homebuyers to withdraw up to $25,000 (previously $20,000) from their RRSP for a down payment. Research conducted by CREA shows that each residential real estate transaction in Canada generates $32,200 in ancillary consumer spending. The study and other real estate facts are posted on the CREA website at http://www.crea.ca
September 23, 2008
New Regulations Expected South of the Border
Did you know the recent financial crisis on Wall Street may carry at least one benefit, which will be some form of “re-regulation” of the U.S. financial system? Many experts say it is time to reduce the excessive risk, speculation and complexity that underlie much of the current problem. Sound regulations already exist in Canada, and our institutions have not been as exposed to the sub-prime mortgage problem or some of the trading practices, products and strategies that have undermined the U.S. financial system over the last decade. There has certainly been some impact here – but nothing to put our banking institutions in jeopardy. They are well capitalized and should be able to weather this storm. We can just hope that the impact on the overall economy will not be too severe and will not last too long. For helpful, plain language explanations of financial markets, go to the Canadian Foundation for Economic Education (CFEE), at http://www.cfee.org
July 14, 2008
Global Market Growth Bodes Well for Canada
Did you know that a global view of Canadian real estate offers very positive indicators? Some pundits direct our attention to the booming economies of India, Russia, China and others. They point to the fact that as the middle and upper classes in these countries grow, at least some of their members will look toward our shores. The number one most desired market to live in is still North America, with Canada holding special attraction to many. The belief among those who take the global view is that Canadian real estate will appeal to and become more accessible to a growing and increasingly affluent world population.
July 14, 2008
Royal LePage Recreational Property Report
Did you know that that Canadians overwhelmingly see the benefit of owning real estate – be it a primary residence or a cottage? The 2008 Royal LePage Recreational Property Report found that 61% of cottage owners and seekers feel that a cottage is a better long-term investment than stocks, bonds or mutual funds. Young professionals make up the largest group of those planning a cottage purchase. Phil Soper, CEO of Royal LePage Real Estate Services says, “The fact that an increasing number of young people are joining more mature adults in the quest for a recreational retreat comes as no surprise; today’s young adults are increasingly savvy when it comes to investments. The average age of first-time homeowners continues to drop. It’s only natural for this trend to spill over into the cottage market.” Canadians list the top three recreational property features to be a pristine waterfront, four-season capability, and low maintenance requirements.
June 15, 2008
Home Ownership Reaches All-Time High
Did you know home ownership rates have reached a record high in Canada? Census data from 2006 shows that 68.4% of Canadians own their home, vs 65.8% in 2001 and 60% in 1971. Low interest rates and strong employment rates helped to spur this growth, in spite of rising house prices. While carrying costs increased alongside house prices, there has been no upswing in arrears or defaults. The forecast is for growth in house prices to moderate while interest rates remain relatively stable. This will continue to support home ownership in Canada.
February 13, 2008
Winter Retreats Attract Investment
Did you know that Canadians are more committed than ever to owning winter retreats? The economic uncertainty in the US has served to further fuel interest in owning a winter recreational property north of the border. The 2008 Royal LePage Winter Recreational Property Report has shown increasing prices for recreational properties in traditional “winter” markets. “High levels of demand combined with limited inventory have pressured winter recreational property prices upward – a trend expected to continue well into the future,” said Lisa da Rocha, VP, Royal LePage Real Estate Services. “Local buyers and foreign investors alike are realizing winter recreational properties are a sound long-term investment.” The top features sought by winter recreational property buyers are: rustic charm, extra guest bedrooms, grand fireplaces, great rooms, hot tubs, internet connections, and professional kitchens. As a year-round retreat market, attractive in both winter and summer, Niagara-on-the-Lake may benefit from the growing inclination to maintain recreational property in Canada rather than the US.
May 11, 2007
Harvard Centre Sees Strong Housing Market
Did you know that a new report by Harvard’s Joint Center for Housing Studies says the housing market will remain strong due to changing demographics, new household formation, boomers’ second home purchases and population expansion. (June 17, 2006)
May 11, 2007
Investment in Niagara Real Estate
Did you know CMHC statistics show that Niagara real estate has been a solid investment? The average price of a home grew by over 50% in the last 10 years. By contrast, the Consumer Price Index has increased about 20% over the same period. (August 12, 2006)
May 11, 2007
Rate of Canadian Home Ownership Reaches All-Time High
Did you know that more Canadians than ever own their own home? The Statscan Survey of Financial Security says the proportion of home-owning Canadians has increased to an all-time high of 62%. Home ownership is one form of wealth accumulation that is accessible to most people. The median amount invested in one’s home is $180,000 vs the median RRSP holding of $30,000. The advantages of home investment include insurability, long-term stability, tax advantages upon selling, and the ability to enjoy the asset while you own it. Home ownership alone is not a sufficiently diversified retirement plan, but for most Canadians, it is the most significant cornerstone. (January 20, 2007)
May 11, 2007
Real Estate Price Appreciation in Canada
Did you know that residential housing prices have shown double-digit rates of annual appreciation in almost half of Canadian cities since 1981? Over the 25-year period, the average Canadian total price increase was 264%. Rates of home ownership have also grown, along with the size and quality of our dwellings. Canadians have good reason to believe in the value of their homes, and they are willing to invest accordingly. “Canadians are widely acknowledged to be among the best housed in the world,” CMHC said in its 2006 Housing Report. In Canada, home is clearly where the heart is… (and the nest egg too!) (February 10, 2007)
