October 19, 2011
House Prices Increase in Q3
Did you know the most recent Q3 Royal LePage House Price Survey showed the year-over-year home prices in Canada increased by 5.7 - 7.8 percent? The strength of price appreciation defied expectations as low interest rates buoyed consumer confidence in a comparatively stable Canadian economy. “Canadian home owners have turned a deaf ear to the negative economic situation shaking housing markets in Europe and the US,” said Phil Soper, CEO of Royal LePage. “The third quarter saw a return to a normal seasonal business cycle as price appreciation slowed in many areas… A broader slowdown is expected in the months ahead but fears of a US-style correction are completely unfounded.”
September 14, 2011
Unusual Weather Appears to Impact Home Sales
Did you know that unusual weather patterns, such as extreme heat or a very snowy winter, can have a significant short-term impact on homes sales? In Royal LePage’s recent survey of real estate agents, 41% of agents said that unusual weather patterns over the past 5 years have affected housing market activity. If a region is experiencing blistering heat or an unusually long winter, sellers can be reluctant to list and buyers seem less willing to get out an look at properties. “Severe weather, be it extreme heat, wet or cold, can prolong or delay seasonal sales cycles by weeks or even months,” said Phil Soper, CEO. of Royal LePage Real Estate Services. “There is no evidence, however, that weather events change home prices over the longer term.”
August 24, 2011
Canadian Real Estate Association Revises 2011 Forecast Upwards
Did you know the Canadian Real Estate Association (CREA) has revised its forecast for home sales upward for 2011? Their recently released report cites stronger-than-expected sales and prices in Q2 and good momentum entering the second half of the year. “However, we expect a gradual retreat in prices next year, taking place over several quarters, with the brunt occurring in late 2012 into early 2013,” commented TD economist Sonya Gulati. CREA said Tuesday it expects unit volume activity will increase by about 1% this year compared with 2010, and average sales prices will be 7.2% higher than the previous year.
July 26, 2011
Bungalows Show Largest Price Increase
Did you know that detached bungalows showed the healthiest year over year price increases for all housing types at 6.1%, according to a new report by Royal LePage Real Estate Services? In close second place were condominiums, up 6%. The price of a standard two-storey home in the GTA increased 4.7% from the same time last year. Bungalows remain popular because of an aging demographic, but affordability has also made them the default choice for some buyers priced out of the two-storey market. Older bungalows are also a popular choice for some developers who are buying for land value to build new infill housing.
July 25, 2011
Projected Average Price Increase of 7.7% in 2011
Did you know Canada’s residential real estate market saw sizable price increases in the second quarter of 2011? However, growth in house prices is expected to slow for the balance of the year. According to the latest Royal LePage House Price Survey and Market Survey Forecast, the national average house price is expected to be 7.7% higher by the end of 2011 than it was at the end of 2010. Phil Soper, President of Royal LePage said, “We expect price gains to moderate considerably in the latter half of 2011, which should reduce the stress associated with purchasing a new home. Looking ahead to 2012, signs are pointing to stability for Canadian homeowners and new buyers.”
June 28, 2011
Cottage Country Goes Up Market
Did you know that cottage buyers are increasingly demanding modern features? Experts say the rustic summer cabin has been replaced by a four-season, wired and often luxurious home. Cable and internet are considered basics. Some luxury properties feature infinity pools, hot tubs, wine cellars and theatre rooms. “A small percentage of people are willing to rough it, but they are getting fewer in number,” says Rick Crouch, former president of the Georgian Real Estate Board. While the low-to-middle range of the cottage market has remained flat, sales have increased at the top end by about 11% over last year. Analysts say a recovering economy and a buoyant Bay Street financial sector in Toronto have helped to boost luxury sales in cottage country.
June 21, 2011
RBC Expects Solid GDP Growth in 2011 and 2012
Did you know Canada’s economy is expected to grow by 3.2% this year, helped by high commodity prices and a continued recovery in the United States? The latest outlook from RBC Economics projects continued GDP growth at a respectable 3.1% pace in 2012. “Strong demand for commodities and a revival in U.S. demand for autos will drive healthy gains in exports,” said RBC chief economist Craig Wright. Although consumers were the mainstay of growth coming out of recession, the key driver will switch to business-driven growth as corporate investments pick up, the report said. Despite current global economic uncertainties, Canada’s economy posted a 3.9% gain in Q1 of this year.
May 18, 2011
CREA Lifts Its 2011 Sales Forecast
Did you know national real estate sales activity is now expected to reach 441,100 units in 2011, a modest decline of 1.3% from 2010? This forecast reflects an improving outlook, compared to the 1.6% decline that had been previously forecast by the Canadian Real Estate Association (CREA). “Mortgage rates remain very attractive and are keeping financing within reach for many homebuyers,” said Gary Morse, CREA President. For 2012, CREA forecasts that national sales activity will rebound by 2.6%. The national average home price is forecast to rise 4% in 2011 and 0.9% in 2012. Gregory Klump, CREA’s Chief Economist adds, “Continuing job growth will underpin housing demand, keeping the housing market in balance and stabilizing home prices.”
April 12, 2011
House Prices Continue to Rise
Did you know the Royal LePage House Price Survey released today showed the average price of a home in Canada increased between 3.5 and 4.3% on a year-over-year basis? Low interest rates and a recovering economy continued to fuel increases. Phil Soper, CEO of Royal LePage said, “We expect house prices will continue to creep up, but most of the excess demand has been satisfied, and affordability continues to erode slowly, allowing the supply of listings to catch up. In most markets, lower single digit percentage increases are more likely for the balance of the year.”
March 2, 2011
Stable Housing Outlook Continues
Did you know prices in the new home market increased for the 12th month in a row, according to figures released by Statistics Canada. The annual 2.3% growth in the price of new homes was modest compared with the resale market, which saw a 9% jump in 2010 values over 2009. “This reflects the continued recovery of the overall housing market in Canada, “ said Queen’s University Urban Planning Professor John Andrew. Meanwhile, the latest housing report by the Bank of Montreal says, “Prices are now rising more slowly than incomes, supporting affordability and reducing the risk of a correction when interest rates normalize.”
February 27, 2011
Real Estate Market Remains Balanced
Did you know the Canadian Real Estate Association (CREA) recently reported the national average price in January was $343,675, little changed from the previous three months. On a seasonally adjusted basis, new listings rose 3.9% for the largest monthly gain since March 2010. “Because sales activity and new supply rose in tandem in January, the national resale housing market remained balanced. The national sales-to-new listings ratio, a measure of market balance, stood at 55.7 per cent in January, 2011, which is little changed from the previous two months,” CREA stated.
January 15, 2011
Moderate and Steady Real Estate Market Expected
Did you know a strengthening economy and low interest rates point to a stronger than anticipated 2011 real estate market? Year-over-year price increases hit the 3.9-4.6% range by the end of 2010 as markets shrugged off a lacklustre 3rd quarter and returned to a post-recession growth profile. Home values are forecast to continue a moderate and steady climb in many key housing markets through 2011, according to the latest Royal LePage House Price Survey and Market Survey Forecast. Royal LePage CEO explains, “Canadians realize that interest rates are unsustainably low and that homes will become effectively more expensive when mortgage rates return to normal levels. We will likely see more price appreciation early in 2011 as some buyers complete transactions in advance of anticipated higher borrowing costs.”
