May 16, 2012
Housing Market Supporters
Did you know that many pundits are speaking about the strength of the housing market? Paul Golini, Chair of the Building Industry and Land Development Association, points to the fact that demand is bolstered by the nearly 100,000 newcomers who arrive in the GTA/Golden Horseshoe region every year. At the recent Land and Development Conference, Doug Porter, deputy chief economist and managing director of BMO Capital Markets said, “We do not believe there is a housing bubble in this country.” Earlier in the week, at the Canada Economic Summit, Gordon Nixon, CEO of the Royal Bank of Canada, said what really needs to cool off (with respect to the housing market) is the rhetoric.
May 9, 2012
Prime Home Buying Group Is Strong in Canada
Did you know Canada’s housing market has a unique supporting factor? Among the 34 countries in the OECD, Canada not only has one of the most robust housing markets; it also has a higher rate of population growth among 20-44 year olds. “The growth rate for this population group is important for the housing market since this is the age cohort associated with marginal demand for a residential asset,” says National Bank economist Stefane Marion. “Importantly, the rate of growth will remain positive over the next decade. This argues against a precipitous fall in home prices.”
April 12, 2012
Royal LePage Q1 Survey Shows Gains
Did you know the latest Royal LePage House Price Survey showed average home prices increased year-over-year by 2.2% - 5.0% in Q1? Market activity was high, resulting in tight inventories and strong price appreciation in many areas. Buyers were attracted by low mortgage rates and sellers brought listings to market early, encouraged by unseasonably warm weather. The Conference Board of Canada’s consumer confidence index also continued to rise in March. Attitudes towards major purchases, such as real estate, were particularly strong.
March 28, 2012
Existing Home Sales Increase
Did you know sales of existing homes in Canada climbed 1.4% in February from January, according to the Canadian Real Estate Association? Sales were up 8.6% on a year-over-year basis. The national average home price rose 2% on a year-over-year basis in February, while the number newly listed homes advanced 1.9% month-over-month. Housing activity has been boosted by record low mortgage rates.
March 14, 2012
Stable Market Predicted in 2012 and 2013
Did you know home sales in Canada are projected to remain fairly stable, with growth of 0.3% in 2012, according to the Canadian Real Estate Association (CREA)? “So long as the European debt crisis is contained and a global economic recession avoided, low interest rates will support Canadian home sales and prices,” says CREA Chief Economist Gregory Klump. Ten of 14 economists surveyed by Reuters said they expect home prices to increase by 0.1% this year.
February 24, 2012
CMHC Has a Positive Outlook for the Real Estate Market
Did you know the prospects for Canada’s housing market are positive, according to the Canada Mortgage & Housing Corporation? They say low interest rates and a moderately expanding economy will keep price corrections at bay. “With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new and existing homes will stay close to levels seen in 2011,” said Mathieu Laberge, CMHC chief economist. CMHC also forecasts a moderate increase in the average home price.
February 24, 2012
Royal LePage House Price Survey Shows Gains
Did you know the latest Royal LePage House Price Survey and Forecast showed the year-over-year average price of a home in Canada increased between 3.6 - 6% in the Q4 of 2011? Condo prices were up 3.6%, two-storey homes were up 4.2%, and bungalow prices grew by 6%. Royal LePage predicts national average prices to increase by 2.8% by the end of 2012. Phil Soper, CEO of Royal LePage says, “Widespread calls for a major real estate correction in 2012 simply can’t be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand – albeit at a slower pace.”
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.”
