Canadian home prices will continue to go up in 2012, although at a slower pace than they did last year, according to one of the country’s largest real-estate sales organizations.
Royal LePage, which franchises brokerages across the country, predicted Thursday that the national average price for resale homes will increase this year by 2.8 per cent by the end of 2012.
It said the national average price for a standard two-storey home was $375,427 in the fourth quarter of 2011, up 4.2 per cent from 2010.
“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,” said Phil Soper, the president and CEO of Royal LePage Real Estate Services.
National averages don’t tell the whole story, however, since there are wide variations depending on the type of home and location.
In Vancouver, a standard two-storey home had an average price of $1.1 million in the fourth quarter of 2012, up 10.9 per cent from a year ago. By contrast, two-storey homes in Atlantic Canada had an average price of $200,000 or less in several cities where increases were fairly flat compared with a year ago.
In Toronto, which is usually the country’s second-most expensive real-estate market after Vancouver, Royal LePage found strong price gains for most housing types in the fourth quarter — due to a lack of available properties and steady demand.
The Royal LePage forecast came as the Statistics Canada reported the price of new homes rose again in November, led by gains in Toronto and Montreal.
The government agency’s new housing price index rose 0.3 per cent in November, after a 0.2 per cent increase in October. On an annual basis, the index was 2.5 per cent higher in November compared with November 2010.
The largest year-over-year price increases in reported by Statistics Canada were in Toronto and Oshawa, Ont., where they were up 6.2 per cent.
In 2012, Royal LePage expects that real estate values in Toronto will increase 2.6 per cent compared to 2011 — slightly slower than the national growth rate.
In the fourth quarter, the average price for detached bungalows rose 7.2 per cent from a year earlier to $532,137; prices for standard two-storey homes rose 4.2 per cent to $629,188 and standard condos rose 3.4 per cent to $347,659.
Some economists have said housing prices in certain Canadian markets, including the Toronto area, may be too high to be sustainable and are due for a correction. However, LePage said housing prices have been high in Toronto because demand has outstripped supply.
“Inventory has been a challenge for Toronto’s potential buyers throughout 2011 and this restricted supply has put upward pressure on prices,” said Gino Romanese, senior vice-president for Royal LePage Real Estate Services Ltd.
“Standard condominiums in the resale market saw a more modest increase due to a healthier supply that was created by newer units coming online. However, demand for older units has increased as they are generally larger in size and preferable to (people downsizing from houses) who are used to more space.”
In Victoria and Saint John, N.B., house prices were flat or slightly down in the fourth quarter, compared with the same period of 2010.
In Saint John, detached bungalows fell 2.2 per cent year-over-year to $179,946, while standard two-storey properties slipped 0.3 per cent to $298,076. Condos were the exception, with average prices climbing 16.1 per cent year-over-year to $159,370, although LePage said those increases weren’t typical.
In Victoria, standard two-storey homes were unchanged, with prices remaining at $480,000 while detached bungalows slipped 0.8 per cent to $486,000 and condos dropping 1.1 per cent to $282,000.
Source: The Canadian Press
Monday, January 16, 2012
Thursday, December 29, 2011
Toronto housing market headed for cool down, BMO predicts
Vancouver’s hot housing market is headed for a cool down in 2012. So is Toronto’s.
But prepare for oil prices — and Alberta’s distinction as the strongest employment market in Canada in 2011 — to propel Calgary and Edmonton to the top two spots next year, according to a bold prediction by BMO Economics.
“Assuming oil prices hold around $90 or better, look for those two cities to lead the way for the hottest housing markets in 2012,” says BMO Deputy Chief Economist Doug Porter.
But GDP growth of just 2 per cent next year, slowing job growth and record-high household debt makes it highly unlikely that we’ll see a repeat of this year’s “surprisingly perky performance” of Canada’s housing market overall, warns Porter in a report.
Leading the way was Vancouver where house sales were up 16 per cent in November 2011 over a year earlier as the seasonally adjusted price of a house hit $756,512.
“That won’t be repeated next year — there are already clear signs that sales are dipping, and price increases are starting to ebb,” says the report.
“Toronto has seized the mantle of hottest major market in recent months, and appears to be at some risk of overheating.”
In second-place Toronto, home sales were up 9.7 per cent in November over a year earlier as the average house price surpassed $480,000 for the first time.
Calgary and Edmonton clearly have some catching up to do, given that their housing markets have remained flat over the last year, even as Alberta topped the rest of the country in job growth.
House prices there are a relative bargain with the average house selling for just $402,185 in Calgary and $326,741 in Edmonton in November, according to figures from the Canadian Real Estate Board.
Source: by Susan Pigg (Toronto Star)
But prepare for oil prices — and Alberta’s distinction as the strongest employment market in Canada in 2011 — to propel Calgary and Edmonton to the top two spots next year, according to a bold prediction by BMO Economics.
“Assuming oil prices hold around $90 or better, look for those two cities to lead the way for the hottest housing markets in 2012,” says BMO Deputy Chief Economist Doug Porter.
But GDP growth of just 2 per cent next year, slowing job growth and record-high household debt makes it highly unlikely that we’ll see a repeat of this year’s “surprisingly perky performance” of Canada’s housing market overall, warns Porter in a report.
Leading the way was Vancouver where house sales were up 16 per cent in November 2011 over a year earlier as the seasonally adjusted price of a house hit $756,512.
“That won’t be repeated next year — there are already clear signs that sales are dipping, and price increases are starting to ebb,” says the report.
“Toronto has seized the mantle of hottest major market in recent months, and appears to be at some risk of overheating.”
In second-place Toronto, home sales were up 9.7 per cent in November over a year earlier as the average house price surpassed $480,000 for the first time.
Calgary and Edmonton clearly have some catching up to do, given that their housing markets have remained flat over the last year, even as Alberta topped the rest of the country in job growth.
House prices there are a relative bargain with the average house selling for just $402,185 in Calgary and $326,741 in Edmonton in November, according to figures from the Canadian Real Estate Board.
Source: by Susan Pigg (Toronto Star)
Tuesday, November 29, 2011
Toronto Mayor Rob Ford to seek 2.5-per-cent property-tax hike
Toronto residents will be asked to pay 2.5-per-cent more in property taxes at a time of cuts to city spending as Mayor Rob Ford continues his austerity crusade with the proposed budget for next year.
The mayor is attempting to reverse a steady increase in spending – an especially tall task in municipal government, where Mr. Ford requires buy-in from a majority of council. Toronto residents get their first glance at how Mr. Ford plans to do that when the wraps come off the 2012 budget starting Monday.
Proposed cuts would shave close to $50-million off the city’s total spending, sources familiar with the budget say. At the same time, the city is counting on taxes to cover a greater share of its planned $9.35-billion budget, which also includes revenue from transfer payments, user fees and other sources. A growing assessment base and the proposed tax hike are expected to add close to $100-million to the city’s coffers, sources say.
Mr. Ford has been clear about his desire to shrink the size of Toronto’s government and reduce costs across the board. For too long, he argues, the city has lived beyond its means, relying on one-time revenue and bailouts from the province to balance its books.
But curbing spending is proving to be a greater task than the mayor envisioned when he promised voters he could cut costs and preserve services by finding the “gravy” at city hall – proof his critics say that there is no gravy after all.
The proposed cut to next year’s budget represents about half a per cent of total expenditures. Balancing the city’s books will depend on one-time windfalls, such as the sale of real estate and the city’s interest in Enwave, Toronto’s downtown district heating and cooling system, The Globe and Mail has learned.
Gaining council’s approval for this budget is a key test for the mayor. The prospect of cuts to libraries and transit service has prompted strong push-back from the public. A review of core services this summer came up with $27.7-million in cost savings to which councillors could agree and the mayor’s closest allies outvoted him earlier this month on a money-saving measure to stop the collection of extra recycling placed beside blue bins.
Labour costs also will be a factor. Staff cuts are a certainty, with pink slips already being delivered in some departments. In addition, management are being trained to drive Zambonis and deliver front-line services in anticipation of a possible lengthy labour disruption next year.
In selling his budget, Mr. Ford is expected to emphasize the need to hold the line on spending, stressing that a dollar directed to save one service must be balanced by a dollar cut elsewhere.
“This is where the city needs to go,” said a source close to the administration. “This is all about resetting the foundation.”
A city-wide directive asked for 10-per-cent savings in all areas. But some, such as police services, failed to reach that number, meaning others will face even more reductions. “Not all departments are essential,” said the source, characterizing the 10-per-cent request as a “management tool,” used to push staff to find savings.
Using the cost-cutting efforts of other governments as a guide, economist Eric Lascelles predicts lowering Toronto’s spending will be tough. Inflation and a growing population naturally drive up expenditures by about 3-per-cent annually, he said, even without new programs, so holding the line or reducing the money going out generally means fewer services.
“It’s difficult to avoid,” said Mr. Lascelles, chief economist for RBC Global Asset Management, pointing to the federal budgets of Paul Martin as an example. “You have to be out there actively cutting and that’s the challenge. It’s very unpopular and politicians don’t like to be unpopular. That’s what makes it so difficult,” he said.
Critics of Mr. Ford, among them former budget chair Shelley Carroll, argue there is no need to cut spending in a city with a growing population and tax base like Toronto. “We are not that broke,” Councillor Carroll said. “You should be efficient, but rein in spending? There is nothing to rein in here.”
Source: Elizabeth Church (Globe and Mail)
The mayor is attempting to reverse a steady increase in spending – an especially tall task in municipal government, where Mr. Ford requires buy-in from a majority of council. Toronto residents get their first glance at how Mr. Ford plans to do that when the wraps come off the 2012 budget starting Monday.
Proposed cuts would shave close to $50-million off the city’s total spending, sources familiar with the budget say. At the same time, the city is counting on taxes to cover a greater share of its planned $9.35-billion budget, which also includes revenue from transfer payments, user fees and other sources. A growing assessment base and the proposed tax hike are expected to add close to $100-million to the city’s coffers, sources say.
Mr. Ford has been clear about his desire to shrink the size of Toronto’s government and reduce costs across the board. For too long, he argues, the city has lived beyond its means, relying on one-time revenue and bailouts from the province to balance its books.
But curbing spending is proving to be a greater task than the mayor envisioned when he promised voters he could cut costs and preserve services by finding the “gravy” at city hall – proof his critics say that there is no gravy after all.
The proposed cut to next year’s budget represents about half a per cent of total expenditures. Balancing the city’s books will depend on one-time windfalls, such as the sale of real estate and the city’s interest in Enwave, Toronto’s downtown district heating and cooling system, The Globe and Mail has learned.
Gaining council’s approval for this budget is a key test for the mayor. The prospect of cuts to libraries and transit service has prompted strong push-back from the public. A review of core services this summer came up with $27.7-million in cost savings to which councillors could agree and the mayor’s closest allies outvoted him earlier this month on a money-saving measure to stop the collection of extra recycling placed beside blue bins.
Labour costs also will be a factor. Staff cuts are a certainty, with pink slips already being delivered in some departments. In addition, management are being trained to drive Zambonis and deliver front-line services in anticipation of a possible lengthy labour disruption next year.
In selling his budget, Mr. Ford is expected to emphasize the need to hold the line on spending, stressing that a dollar directed to save one service must be balanced by a dollar cut elsewhere.
“This is where the city needs to go,” said a source close to the administration. “This is all about resetting the foundation.”
A city-wide directive asked for 10-per-cent savings in all areas. But some, such as police services, failed to reach that number, meaning others will face even more reductions. “Not all departments are essential,” said the source, characterizing the 10-per-cent request as a “management tool,” used to push staff to find savings.
Using the cost-cutting efforts of other governments as a guide, economist Eric Lascelles predicts lowering Toronto’s spending will be tough. Inflation and a growing population naturally drive up expenditures by about 3-per-cent annually, he said, even without new programs, so holding the line or reducing the money going out generally means fewer services.
“It’s difficult to avoid,” said Mr. Lascelles, chief economist for RBC Global Asset Management, pointing to the federal budgets of Paul Martin as an example. “You have to be out there actively cutting and that’s the challenge. It’s very unpopular and politicians don’t like to be unpopular. That’s what makes it so difficult,” he said.
Critics of Mr. Ford, among them former budget chair Shelley Carroll, argue there is no need to cut spending in a city with a growing population and tax base like Toronto. “We are not that broke,” Councillor Carroll said. “You should be efficient, but rein in spending? There is nothing to rein in here.”
Source: Elizabeth Church (Globe and Mail)
Wednesday, November 16, 2011
Real estate boards push back
The Canadian Real Estate Association might have struck a deal that gives property owners the chance to pay brokers only for the services they want when selling their homes.
But in an odd twist, a year after settling with the Federal Competition Bureau, the real estate association is now facing an internal revolt by several member boards that say they are fed up of paying for services they don’t need.
Indeed, the Greater Montreal Real Estate board – the second largest board in Canada with 10,000 members – says it would consider leaving CREA at the end of 2012 if the association doesn’t cut expenses, and embrace the very same “fee-for-service” model now available to Canadian homeowners.
“What we want here in Quebec – and we assume it’s the same thing at other real estate boards in Canada – is for the CREA to provide us with à la carte services,” Montreal board president Patrick Juanéda told The Gazette in an interview Thursday. “We have too much duplication of services. Why recreate what already exists?
“This is a reality that’s existed for 10 years, and it’s just grown and grown. It’s becoming too expensive; our members are fed up.”
According to the Montreal board, CREA’s national membership dues are to rise 41 per cent between 2010 and 2013, from $220 to $310. CREA dues are used to defray the costs of services like government relations, publicity, meetings and technological tools like the realtor.ca website.
The CREA dues are part of the more than $2,000 in fees paid this year by a Montreal-area broker to his or her industry associations. These fees come at a time when members are seeing their commissions watered down by competition from For Sale By Owner sites and discount agencies where brokers are willing to be paid less for offering limited real estate services.
But a spokesperson for CREA said any fee increases were approved by 80 per cent of association delegates at a 2010 meeting. The fee increase, Pierre Leduc said in an email, was needed so CREA “could keep up to date with the tech tools consumers and Realtors use,” such as new apps developed by the association.
Yet Juanéda says CREA services like its ad campaigns aren’t useful in Quebec, where the entire real estate profession – down to the use of terminology like “broker” as opposed to “agent” – is regulated by provincial law. Indeed, last month CREA actually reimbursed the Montreal board for the dues its members pay for advertising, Juanéda said.
What’s more, CREA’s site, realtor.ca, duplicates the
centris.ca website used by most brokers in Quebec.
The Montreal board says CREA fees have grown by 121 per cent over the last 10 years.
“What company today would spend that much more without trying to trim its own fat?” Juanéda asked.
Although Juanéda says his concerns over duplication of services are shared by real estate professionals across the country, Quebec real estate boards appear to be the most vociferous. One small real estate board – in Granby – has already opted to leave.
A spokesperson for the Toronto Real Estate Board, Canada’s largest board, could not be reached for comment. Neither could ones for the Real Estate Board of Greater Vancouver or the Calgary Real Estate Board.
But in a recent interview, outgoing Calgary board president Ron Esch told Real Estate Magazine that duplication of services is a concern for his members.
“One of the concerns I have for real estate boards (and it includes the provincial associations and CREA) is that we don’t duplicate services at the different levels,” Esch told the magazine. “We need to make sure that we don’t keep piling it on and then the member has to pay for the same service at two or three different levels.”
CREA spokesperson Leduc said the complaints against CREA largely stem from Quebec boards where brokers have been hit by a hefty fee hike from the real estate industry’s watchdog, the Organisme d’autoréglementation du courtage immobilier du Québec, or OACIQ.
“We understand that Quebec boards and their members are under unique pressures due to market conditions and the fact that the regulator in Quebec has nearly doubled its licensing fees,” Leduc wrote.
Leduc, however, acknowledged that the concerns aren’t limited exclusively to Quebec boards.
“As you can imagine, with over 100,000 members and 103 member boards and associations, CREA is always talking with them about various issues, how to meet evolving needs, etc.,” he wrote. “But I’m not aware of any specific ongoing concerns related to the dues increase – as I said almost 80 per cent of the delegates approved it.”
Leduc was not able to say Thursday whether the association would change its model of collecting dues from member boards, but noted that CREA would continue to talk to disgruntled boards.
“We have had, and continue to have, discussions with some Quebec boards, including Montreal, and are working toward a mutually agreeable solution that works for the benefit of all CREA members.”
Source:The Montreal Gazette
But in an odd twist, a year after settling with the Federal Competition Bureau, the real estate association is now facing an internal revolt by several member boards that say they are fed up of paying for services they don’t need.
Indeed, the Greater Montreal Real Estate board – the second largest board in Canada with 10,000 members – says it would consider leaving CREA at the end of 2012 if the association doesn’t cut expenses, and embrace the very same “fee-for-service” model now available to Canadian homeowners.
“What we want here in Quebec – and we assume it’s the same thing at other real estate boards in Canada – is for the CREA to provide us with à la carte services,” Montreal board president Patrick Juanéda told The Gazette in an interview Thursday. “We have too much duplication of services. Why recreate what already exists?
“This is a reality that’s existed for 10 years, and it’s just grown and grown. It’s becoming too expensive; our members are fed up.”
According to the Montreal board, CREA’s national membership dues are to rise 41 per cent between 2010 and 2013, from $220 to $310. CREA dues are used to defray the costs of services like government relations, publicity, meetings and technological tools like the realtor.ca website.
The CREA dues are part of the more than $2,000 in fees paid this year by a Montreal-area broker to his or her industry associations. These fees come at a time when members are seeing their commissions watered down by competition from For Sale By Owner sites and discount agencies where brokers are willing to be paid less for offering limited real estate services.
But a spokesperson for CREA said any fee increases were approved by 80 per cent of association delegates at a 2010 meeting. The fee increase, Pierre Leduc said in an email, was needed so CREA “could keep up to date with the tech tools consumers and Realtors use,” such as new apps developed by the association.
Yet Juanéda says CREA services like its ad campaigns aren’t useful in Quebec, where the entire real estate profession – down to the use of terminology like “broker” as opposed to “agent” – is regulated by provincial law. Indeed, last month CREA actually reimbursed the Montreal board for the dues its members pay for advertising, Juanéda said.
What’s more, CREA’s site, realtor.ca, duplicates the
centris.ca website used by most brokers in Quebec.
The Montreal board says CREA fees have grown by 121 per cent over the last 10 years.
“What company today would spend that much more without trying to trim its own fat?” Juanéda asked.
Although Juanéda says his concerns over duplication of services are shared by real estate professionals across the country, Quebec real estate boards appear to be the most vociferous. One small real estate board – in Granby – has already opted to leave.
A spokesperson for the Toronto Real Estate Board, Canada’s largest board, could not be reached for comment. Neither could ones for the Real Estate Board of Greater Vancouver or the Calgary Real Estate Board.
But in a recent interview, outgoing Calgary board president Ron Esch told Real Estate Magazine that duplication of services is a concern for his members.
“One of the concerns I have for real estate boards (and it includes the provincial associations and CREA) is that we don’t duplicate services at the different levels,” Esch told the magazine. “We need to make sure that we don’t keep piling it on and then the member has to pay for the same service at two or three different levels.”
CREA spokesperson Leduc said the complaints against CREA largely stem from Quebec boards where brokers have been hit by a hefty fee hike from the real estate industry’s watchdog, the Organisme d’autoréglementation du courtage immobilier du Québec, or OACIQ.
“We understand that Quebec boards and their members are under unique pressures due to market conditions and the fact that the regulator in Quebec has nearly doubled its licensing fees,” Leduc wrote.
Leduc, however, acknowledged that the concerns aren’t limited exclusively to Quebec boards.
“As you can imagine, with over 100,000 members and 103 member boards and associations, CREA is always talking with them about various issues, how to meet evolving needs, etc.,” he wrote. “But I’m not aware of any specific ongoing concerns related to the dues increase – as I said almost 80 per cent of the delegates approved it.”
Leduc was not able to say Thursday whether the association would change its model of collecting dues from member boards, but noted that CREA would continue to talk to disgruntled boards.
“We have had, and continue to have, discussions with some Quebec boards, including Montreal, and are working toward a mutually agreeable solution that works for the benefit of all CREA members.”
Source:The Montreal Gazette
Tuesday, October 25, 2011
GTA REALTORS® Release Mid-Month Resale Market Figures
Greater Toronto REALTORS® reported 3,477 transactions through the TorontoMLS® system during the first 14 days of October 2011. This total represented a 20 per cent increase over 2,890 sales reported during the first two weeks of October 2010. Year-over-year growth in new listings for the same period was slightly stronger than that recorded for sales – up 21 per cent to 6,249.
"The first two weeks of October seem to be pointing towards more balanced market conditions as we move toward 2012. Growth in new listings outstripped growth in sales, meaning more choice for buyers," said Toronto Real Estate Board President Richard Silver. "A growing number of home owners are reacting to the above average price growth reported this year and have decided to list their home for sale. They are confident they will receive timely offers in line with their asking prices."
The average selling price during the first two weeks of October was $475,743 – up 7.5 per cent compared to the same period in 2010.
"The average resale home price is expected to grow at a slower pace in the months ahead because the market is becoming better supplied. There will be less competition between home buyers as we move through the fall and winter." said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "With a more balanced market in 2012, the average rate of annual price growth is expected to be in the mid single digits."
"The first two weeks of October seem to be pointing towards more balanced market conditions as we move toward 2012. Growth in new listings outstripped growth in sales, meaning more choice for buyers," said Toronto Real Estate Board President Richard Silver. "A growing number of home owners are reacting to the above average price growth reported this year and have decided to list their home for sale. They are confident they will receive timely offers in line with their asking prices."
The average selling price during the first two weeks of October was $475,743 – up 7.5 per cent compared to the same period in 2010.
"The average resale home price is expected to grow at a slower pace in the months ahead because the market is becoming better supplied. There will be less competition between home buyers as we move through the fall and winter." said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "With a more balanced market in 2012, the average rate of annual price growth is expected to be in the mid single digits."
Summary of TorontoMLS® Sales and Average Price October 1 – 14 | |||||||||||
2011 | 2010 | ||||||||||
Sales | Average Price | Sales | Average Price | ||||||||
City of Toronto ("416") | 1,408 | $524,553 | 1,237 | $499,740 | |||||||
Rest of GTA ("905") | 2,069 | $442,527 | 1,653 | $400,088 | |||||||
GTA | 3,477 | $475,743 | 2,890 | $442,742 | |||||||
TorontoMLS® Sales & Average Price By Home Type | |||||||||||
Sales | Average Price | ||||||||||
416 | 905 | Total | 416 | 905 | Total | ||||||
Detached | 450 | 1,143 | 1,593 | 754,240 | 530,339 | 593,588 | |||||
Yr./Yr. % Change | 2% | 24% | 17% | 3% | 10% | 6% | |||||
Semi-Detached | 183 | 245 | 428 | 545,995 | 364,649 | 442,188 | |||||
Yr./Yr. % Change | 33% | 41% | 37% | 11% | 7% | 9% | |||||
Townhouse | 151 | 372 | 523 | 461,112 | 343,510 | 377,464 | |||||
Yr./Yr. % Change | 23% | 18% | 20% | 16% | 12% | 13% | |||||
Condo Apartment | 609 | 251 | 860 | 369,528 | 272,190 | 341,119 | |||||
Yr./Yr. % Change | 16% | 22% | 18% | 10% | 10% | 10% | |||||
Source: Toronto Real Estate Board
Friday, September 16, 2011
In Toronto, the fall housing market hits a speed bump
Toronto’s hot housing market may be showing the first signs of cooling as a surge of new listings arrived right after Labour Day to a lukewarm response from potential buyers.
Real estate agents say it’s too soon to tell whether buyers are losing confidence or are just slow to return from vacation as the fall market gears up.
Theodore Babiak of Royal LePage Real Estate Services Ltd. says some sellers have received multiple offers in recent weeks, but the frenzied bidding that characterized the spring market has slowed down.
“I think sellers will need to temper their expectations,” says Mr. Babiak, who detected a slight decrease in buyers’ enthusiasm in the second half of August.
Bank of Nova Scotia economist Adrienne Warren says strong price gains during the summer may be encouraging more owners to bring their properties to market.
Ms. Warren says sellers definitely had the upper hand in Toronto’s real estate market last month as listings remained tight.
Early data shows that sales jumped 24 per cent last month compared with the lethargic pace set in August of 2010. She estimates that the average price rose 10 per cent in August compared with the same month last year.
But a shift may be underway, Ms. Warren says, as the strong price gains tallied through the summer may be encouraging more owners to bring their properties to the market.
“I think sellers say ‘it’s a pretty good time to list.’ ”
Consumers, meanwhile, are feeling less buoyant according to recent surveys.
Last week’s employment report from Statistics Canada, which showed the economy shed jobs in August, may dampen confidence further, she adds.
Ms. Warren says Toronto’s real estate market has been noticeably hotter than those in other Canadian cities. Demand in Vancouver has been dampened by the lack of affordability, she adds, and that same phenomenon may discourage house hunters here.
“Affordability is certainly an issue here in Toronto,” she says.
Ms. Warren is still forecasting increasing prices on an annual basis in Toronto, but she believes those gains will slow to two or three per cent by the final months of 2011 compared with the same months in 2010.
She cautions, however, that if the jobs market deteriorates sharply, house prices may fall.
Mr. Babiak says the high end of the market has been soft in Toronto in recent months as investment bankers and other Bay Street workers worry about the outlook for financial markets and world economies.
Houses priced at less than $1-million have been snapped up quickly thus far, he says, but buyers may become more nervous.
“I would have no problem telling sellers to list sooner rather than later,” he says.
For now Mr. Babiak will continue to advise sellers with a good property to set an offer date with the hope of attracting multiple bids, he says, but sellers of houses and condos that are poorly-located or have other flaws will likely do better to take offers at any time.
“New listings will have to be priced sharply to get action,” he says.
Agent Duncan Fremlin of ReMax Hallmark Realty Ltd. says he has been called out to evaluate several potential listings but it’s too soon to tell if house hunters will retreat to the sidelines.
“The wild card in all of this is the buyers.”
He hasn’t seen signs of a cool down.
“I haven’t sensed yet that the consumer has lost confidence.”
Source: Carolyn Ireland (Globe and Mail)
Real estate agents say it’s too soon to tell whether buyers are losing confidence or are just slow to return from vacation as the fall market gears up.
Theodore Babiak of Royal LePage Real Estate Services Ltd. says some sellers have received multiple offers in recent weeks, but the frenzied bidding that characterized the spring market has slowed down.
“I think sellers will need to temper their expectations,” says Mr. Babiak, who detected a slight decrease in buyers’ enthusiasm in the second half of August.
Bank of Nova Scotia economist Adrienne Warren says strong price gains during the summer may be encouraging more owners to bring their properties to market.
Ms. Warren says sellers definitely had the upper hand in Toronto’s real estate market last month as listings remained tight.
Early data shows that sales jumped 24 per cent last month compared with the lethargic pace set in August of 2010. She estimates that the average price rose 10 per cent in August compared with the same month last year.
But a shift may be underway, Ms. Warren says, as the strong price gains tallied through the summer may be encouraging more owners to bring their properties to the market.
“I think sellers say ‘it’s a pretty good time to list.’ ”
Consumers, meanwhile, are feeling less buoyant according to recent surveys.
Last week’s employment report from Statistics Canada, which showed the economy shed jobs in August, may dampen confidence further, she adds.
Ms. Warren says Toronto’s real estate market has been noticeably hotter than those in other Canadian cities. Demand in Vancouver has been dampened by the lack of affordability, she adds, and that same phenomenon may discourage house hunters here.
“Affordability is certainly an issue here in Toronto,” she says.
Ms. Warren is still forecasting increasing prices on an annual basis in Toronto, but she believes those gains will slow to two or three per cent by the final months of 2011 compared with the same months in 2010.
She cautions, however, that if the jobs market deteriorates sharply, house prices may fall.
Mr. Babiak says the high end of the market has been soft in Toronto in recent months as investment bankers and other Bay Street workers worry about the outlook for financial markets and world economies.
Houses priced at less than $1-million have been snapped up quickly thus far, he says, but buyers may become more nervous.
“I would have no problem telling sellers to list sooner rather than later,” he says.
For now Mr. Babiak will continue to advise sellers with a good property to set an offer date with the hope of attracting multiple bids, he says, but sellers of houses and condos that are poorly-located or have other flaws will likely do better to take offers at any time.
“New listings will have to be priced sharply to get action,” he says.
Agent Duncan Fremlin of ReMax Hallmark Realty Ltd. says he has been called out to evaluate several potential listings but it’s too soon to tell if house hunters will retreat to the sidelines.
“The wild card in all of this is the buyers.”
He hasn’t seen signs of a cool down.
“I haven’t sensed yet that the consumer has lost confidence.”
Source: Carolyn Ireland (Globe and Mail)
Thursday, September 15, 2011
CREA report could show August market turmoil affected monthly home sales
Investors are bracing for word on whether August's stock market volatility put a damper on Canadian housing sales for the month.
The Canadian Real Estate Association is set to release figures for existing home sales later this morning.
Economists are expecting a 14 per cent spike in sales volumes from a year ago and say prices will rise by 7.5 per cent.
Strong housing sales in the second quarter had previously prompted CREA to revise its 2011 home sales projections upwards.
Initially, the real estate brokers group had predicted they would decline one per cent from 2010 levels.
But August was a month of wild swings on most major markets, including the Toronto Stock Exchange, and the effect on the real estate market is not yet known.
U.S. government debt negotiations and fears of an economic meltdown in cash-strapped European countries saw the TSX drop below 12,000 points and fall off more than 10 per cent from highs set in early March.
Analysts say the Canadian housing market has continued to grow despite a slowing national economy — mainly because of low mortgage rates and strong job growth, especially in western Canada.
Source: The Canadian Press
The Canadian Real Estate Association is set to release figures for existing home sales later this morning.
Economists are expecting a 14 per cent spike in sales volumes from a year ago and say prices will rise by 7.5 per cent.
Strong housing sales in the second quarter had previously prompted CREA to revise its 2011 home sales projections upwards.
Initially, the real estate brokers group had predicted they would decline one per cent from 2010 levels.
But August was a month of wild swings on most major markets, including the Toronto Stock Exchange, and the effect on the real estate market is not yet known.
U.S. government debt negotiations and fears of an economic meltdown in cash-strapped European countries saw the TSX drop below 12,000 points and fall off more than 10 per cent from highs set in early March.
Analysts say the Canadian housing market has continued to grow despite a slowing national economy — mainly because of low mortgage rates and strong job growth, especially in western Canada.
Source: The Canadian Press
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