March 21, 2012
Housing Becoming More Affordable
Did you know housing affordability is improving in Canada? An RBC survey shows all housing categories became more affordable, led by the two-storey home category. The affordability measure tracks the proportion of pre-tax income required to service the costs of owning a home at current market values. RBC’s chief economist says, “Continued low interest rates in 2012 will help keep housing costs at bay in the near term.”
May 30, 2011
Owners and Buyers Perceive Recreational Properties Positively
Did you know that 89% of owners and prospective buyers of recreational property agree that such properties are a good long-term investment, according to a new Royal LePage survey? Half say that recreational properties provide a larger financial return than the stock market. And 92% say a recreational property is a great way to bring family together. “Canada’s traditionally buoyant recreational property market appears to have found its groove,” says Phil Soper, CEO of Royal LePage. “Miserable weather has delayed the 2011 buying season,” Soper adds. “But the survey shows that the improving economy has stoked consumer confidence which should impact demand positively. We expect to see considerable activity in the coming months.”
March 30, 2011
Reasons for Stability in Canadian Real Estate
Did you know that global turmoil might actually help Canada’s real estate market? Expert Don Campbell, president of the Real Estate Investment Network, says Canada has what the world needs - Food, Fuel, Fertilizer & Forestry. There is NO other stable country in the world that can provide all of these as reliably, and demand will increase. Increased production of the 4 Fs leads to GDP growth, which stimulates higher levels of employment and boosts population. A growing population creates housing demand and real estate market growth. Mr. Campbell adds, “Obviously we are not immune to what goes on in the world… we do need to be realistic about that. However, this is Canada’s time to shine.”
March 21, 2011
Canadians Have Very High Confidence in Real Estate
Did you know, according to the 18th Annual RBC Homeownership Study, that 90% of Canadians are confident about real estate in Canada as an investment and 85% feel that they are doing a good or excellent job of paying down their mortgage? “Canadians believe in the long-term benefits of owning a home including the value it can provide, both personally and as a long term investment,” said Marcia Moffat, RBC head of home equity financing. “Last year’s survey showed that people were looking to buy ahead of rising costs. This year marks a return to more normal levels of purchase intentions and recent housing data reflects this move to a more balanced market.”
August 9, 2010
HST Has Some Consumers Confused
A recent Royal LePage survey found that consumers have misconceptions about how the HST affects real estate transactions. A proportion of homebuyers incorrectly believes HST applies to the sale price of resale properties. The HST applies to the purchase price of a newly-built home, and to the fees for services and commissions associated with real estate transactions, but it does not apply to the purchase price of resale homes. “We found is that there is a need to better educate home buyers and sellers to ensure they understand when the HST is applicable,” says Phil Soper, CEO of Royal LePage Real Estate Services.
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 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 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.
