Housing performance expected to accelerate in 2010

The year isn’t over yet, but you can definitely expect new Market forecast coming this month, telling us how the year did so far and what to expect for 2010. This is the first we’re publishing here. The report was done by RE/MAX. More reports coming soon.

As economic stability returns to Canadian markets, housing performance expected to accelerate in 2010.
The RE/MAX Housing Market Outlook for 2010 examined residential real estate trends in 23 markets. The report found that sales are forecast to recover in almost all major centres by year-end 2009

“Canadians continue to demonstrate their commitment to homeownership – regardless of the economic climate,” says Sylvain Dansereau, Executive Vice President, RE/MAX Quebec.
“No where in Canada is that more evident than in Quebec. The province, with one of highest percentage of renters in the country, is well-poised for an escalation in homeownership levels as renters enter the market en masse to take advantage of ideal market conditions. Prices remain well under the national average, making ownership more attainable and leaving more room for appreciation that’s been long overdue.”

More on the Market Outlook Nationwide:

• Approximately 465,000 homes are expected to change hands nationally in 2009, a 7% increase over one year ago.
• Canadian housing values are forecast to close the year at $318,000, up 5% from $303,594 in 2008.
• By year-end 2010, the number of homes sold is predicted to climb another 2% to 475,000 units.
• The average price of a home is also expected to experience an uptick, rising 2% to $325,000 – the highest level in Canadian history.

Canadian Home Buyers Savvy and Optimistic

Canada Mortgage and Housing Corporation’s (CMHC) 2009 Mortgage Consumer Survey results were released last week, and indicate that nearly 90% of recent home purchasers across the country believe that home ownership is a good long-term investment and that almost 70% think that now is a good time to purchase a home in their community.

Buyers are knowledgeable about the mortgage process and their lender’s assessment of eligibility. For example, 86% are of the view that the level of total housing and other monthly payments should generally not exceed 40% of gross household income, which is in line with generally accepted mortgage lending practices.

Recent buyers are prudent mortgage managers.
According to the survey, 75% of purchasers have a goal to be mortgage free sooner than their original amortization. In fact, 20% of recent purchasers report having made a lump sum payment to their mortgage. Read more

Important factors for first-time homebuyers: Affordability and job security

According to a report released today by Royal LePage Real Estate Services, Canadians who are considering purchasing their first home are primarily motivated by lower home prices and very low interest rates, but some require confidence in the economy and their employment prospects before they will enter the market.

• 86% of potential first-time buyers say low interest rates make them more likely to purchase a home;
• 81% cite lower housing prices as a motivating factor;
• 76 % cite job security;
• and 64% say a stable economy is an important factor in their decision to buy.

Potential buyers were asked to rank their top incentives for purchasing a first property. These are the top four incentives found, in this order:

1. Lower home prices
2. Lower interest rates
3. First-Time Home Buyers’ Tax Credit.
4. The recently introduced Home Renovation Tax Credit for 2009 was cited by 42 per cent of potential first-time buyers as either ‘very likely’ or ‘somewhat likely’ to impact their purchasing decision.

“Our survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.” Said Phil Soper, president and chief executive of Royal LePage Real Estate Services.

Across the country, potential first-time homebuyers agreed that affordability was their top consideration, however the survey also revealed differences amongst buyers in various regions of Canada. Read more

Home re-sale market shows signs of recovery

Canada’s housing market shows every sign of having bounced back from its recessionary bottom, with both the number and price of homes rising for the third straight month in April.

The Canadian Real Estate Association said homes sales soared 11.2 per cent on a seasonally adjusted basis from March, the biggest jump in five years, and with 34,838 units trading hands, the highest level in seven months.

Meanwhile, the national average sale price of homes listed by realtors also rose in April to $306,366 in April.

But while encouraging, the report noted that both sales activity and prices remain at levels lower than a year ago, indicating the housing market has yet to fully recover to pre-recession levels.

The average home resale price is down 3.2 per cent from a year ago and down almost 10 per cent from the peak of $324,000 reached in December 2007.

Economists with Scotia Capital pointed out in a note to clients that the resale housing market does little to increase gross domestic product since it involves paper transactions, and that new home construction remains week.

Source: Canadian Press. Read the complete article

Market Update: First Quarter 2009 Report by Royal LePage

Sit tight, the quarterly market reports will begin to pop-up everywhere!
With the end of the first trimester, we will have a surplus of information available from different sources.

I’ve included here the chart for condo and bungalow information nationwide. Montreal is highlighted in green. Click on the image to view the original size.

The first report is from Royal LePage. And it goes:

Canadian Real Estate Market Relatively Resilient During First Quarter

“Consistent with current economic trends, Canadian residential real estate prices declined during the first quarter, according to a quarterly House Price Survey released today by Royal LePage Real Estate Services Ltd. As the market correction unfolds, year-over-year home prices were lower, as was expected. Increased buyer activity at the end of March suggests that spring will bring its typical increase in unit sales activity as buyers target summer moves.”

In Montreal and Ottawa, detached bungalows are in the plus:

“Moderate growth occurred for detached bungalows in Montreal (up 2 per cent) and Ottawa (up 1.9 per cent), while Toronto saw a decline of 6.3 per cent compared to the same period in 2008. Prices in the prairies and in western cities declined with the average price for a detached bungalow down 8.1 per cent in Saskatoon and 11.2 per cent in Edmonton”

You can find the complete article and market repoert here

Les prix et les ventes de résidences continuent de chuter au pays mais au Québec…

(ces chers journalistes qui mettent encore une fois le Québec dans le même panier que le reste du Canada !)

Le prix de vente moyen a chuté de 9,2 % au pays en février, à 281 972 $.

Ottawa — Les prix et les ventes de résidences ont continué de chuter au Canada le mois dernier, comparativement à la même période il y a un an, mais l’activité du secteur était en hausse pour la première fois depuis septembre, a rapporté hier l’Association canadienne de l’immeuble (ACI).

Le prix de vente moyen a chuté de 9,2 % au pays en février, à 281 972 $, a indiqué l’ACI. Les ventes ont diminué de 31 % et atteint 25 373 unités le mois dernier, soit le recul le moins important, d’une année à l’autre, à avoir été constaté depuis octobre 2008. Les ventes désaisonnalisées ont diminué de 26,8 %.

Le nombre de propriétés vendues par le biais des systèmes MLS des chambres immobilières canadiennes a par ailleurs été de 8,6 % supérieur aux niveaux de ventes désaisonnalisées en janvier, a indiqué l’association.

Selon l’ACI, le prix moyen des résidences a diminué en février en grande partie à cause de la baisse des ventes observée en Colombie-Britannique, en Alberta et en Ontario, «où les résidences sont plus chères et la demande s’est affaiblie le plus».

Les ventes de février ont baissé le plus en Colombie-Britannique par rapport à l’an dernier, ayant chuté de 46,5 %, à 3653 unités, devant celles enregistrées en Saskatchewan, 32,1 %, à 628 unités, et celles rapportées en Alberta, qui ont reculé de 29,8 % pour s’établir à 3231 unités. Les ventes en Ontario, province qui constitue le plus important marché immobilier au pays, ont diminué de 29,2 % en février, par rapport au même mois il y a un an, et ont atteint 9861 unités. Au Québec, le recul a été de 24,7 %, pour un total de 6042 unités.

Les prix ont également chuté le plus en Colombie-Britannique, ayant atteint une moyenne de 421 023 $, en baisse de 12 %.

Au Québec, les prix ont grimpé de 1,6 % en moyenne en février par rapport au même mois l’an dernier, pour atteindre 207 927 $.

Source: La Presse canadienne | Édition du mardi 17 mars 2009
Courtesy of: McGill Immobilier Team

In Canada: Real estate prices predicted to fall back to 2000 levels

Talking about media mixed messages, just after we get the news on local real estate saying that prices are up, they hit us now with this national forecast..

Property sales in Canada this year are expected to drop back to 2000 levels before rebounding in 2010, according to a new report from the Canadian Real Estate Association.
The Ottawa-based group, which represents 100 boards across the country, issued a new forecast for 2009 and predicted sales would fall to 360,900. That would be a 16.9% decline from 2008. Sales last year fell 17.1% from 2007. Read the complete article.

News Source: Property Wire

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