Canadian Real Estate Association Updates Forecast

Posted on March 7, 2012 | Leave a comment

The Canadian Real Estate Association (CREA) recently updated its quarterly resale housing forecast.

According to CREA, 458,800 homes are expected to be sold across Canada this year, which would be a 0.3 per cent increase over 2011.

“The continuation of low interest rates is good news for housing and for the economy,” said Gary Morse, president of the Canadian Real Estate Association in a press release. “Local housing market outlooks differ according to their respective economic prospects, so buyers and seller should talk to their local realtor to better understand housing market prospects in their area,” he continued.

Resale housing sales in Canada are expected to drop by the same amount in 2013, to 457,200 units.

CREA’s updated housing market forecast reflects recent and prospective trends for provincial home sales activity coupled with prevailing provincial economic outlooks,” said Gregory Klump, the chief economist for the Canadian real estate association. “Risks to the Canadian economic outlook remain elevated owing to the European sovereign debt quagmire, but the continuation of low interest rates is the silver lining. So long as the European debt crisis is contained and a global economic recession is avoided, low interest rates will support Canadian home sales and prices.

He continued, “Recent trends are reassuring, but interest rates remaining low for longer will doubtlessly keep the Canadian housing market under scrutiny for signs of overheating.”

For the full report, click here.

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Toronto Home Sales Increase In February

Posted on March 6, 2012 | Leave a comment

According to the latest from the Toronto Real Estate Board, home sales in February 2012 increased 16 per cent over Toronto home sales in February 2011 – a total of 7,032 sales. New listings also increased to 12,684, which is up 11 per cent over the same time last year.

The one additional day in this year’s leap year February made a difference – up to February 28th, home sales were only up 10 per cent and new listings were only up six per cent.

“With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price,” said Toronto Real Estate Board president Richard Silver in a press release. “It is important to note that both buyers and sellers are aware of current market conditions. This is evidenced by the fact that homes sold, on average, for 99 per cent of the asking price in February.”

Prices increased by 11 per cent to an average of $502,508 over the same time last year, but using the new Composite MLS Home Price Index home prices only increased by 7.3 per cent.

“If tight market conditions continue to result in higher-than-expected price growth as we move into the spring, expectations for 2012 as a whole will have to be revised upwards,” said the senior manager of market analysis for the Toronto Real Estate Board, Jason Mercer, in the same press release. “While price growth remains strong, the average selling price remains affordable from a mortgage lending perspective for a household earning the average income in the GTA.”

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National Home Sales Retreat Slightly, Toronto Real Estate Market Still Hot

Posted on February 22, 2012 | Leave a comment

According to the latest information from the Canadian Real Estate Association, home sales in Canada retreated slightly January 2012 when compared to December 2011, with a 4.5 per cent decline.

“The national housing market is stabilizing and remains well balanced,” said the president of the Canadian Real Estate Association, Gary Morse. “The said, forecasts for economic and job growth going forward vary widely for different parts of the country, suggesting a possible continuation of a softening trend in some markets, as well as the potential that demand will pick up based on strong fundamentals in others. All real estate is local, so talk to your local Realtor to understand how price trends in your neighbourhood are shaping up,” he said.

However, sales increased by four per cent over January of last year across Canada. Because new listings are also up more than sales (especially in Toronto), the market is a bit more balanced.

“Year-over-year comparisons in the national average price are expected to become volatile and may turn negative, reflecting average price developments in the first half of 2011 in Vancouver,” said the chief economist at the Canadian Real Estate Association, Gregory Klump. “At that time, high-end home sales in Vancouver’s priciest neighbourhoods surged to all-time record levels, which skewed the national average price upward considerably.

If this more balanced market created by higher listings than sales continues, buyers will have less competition when they put in an offer on a home.

“A replay of this phenomenon is not expected this year,” he added, “as a result, comparisons for national average price to year-ago levels over the coming months will reflect an upwardly skewed base effect – for this reason, year-over-year comparisons should be kept in perspective.”

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Toronto Home Sales Increase In Early February

Posted on February 20, 2012 | Leave a comment

According to the latest numbers from the Toronto Real Estate Board, home sales in Toronto increased during the first 14 days in February 2012 by nine per cent – to 3,206 homes sold from 2,933 homes sold last year.

“The GTA resale home market became better supplied during the first 14 days of February,” said Toronto Real Estate Board president Richard Silver in a press release. “If growth in new listings continues to outstrip growth in sales this year, competition between home buyers will ease. More balanced market conditions on a sustained basis would result in a lower annual rate of price growth later in 2012.”

The average home selling price was also up by nine per cent, but new listings increased by 13 per cent – which bodes well for prices later this year.

“Both buyers and sellers are aware of the substantial competition that exists for most listings in the GTA,” said the Toronto Real Estate Board senior manager of market analysis, Jason Mercer. “There is not a mismatch in expectations, so homes sell quickly at close to the asking price.”

For more information, visit the Toronto Real Estate Board press release here.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Bank of Canada Interest Rates Hold Steady Until At Least March

Posted on February 14, 2012 | Leave a comment

In January 2012, the Bank of Canada announced that it would keep interest rates at record lows (1.25 per cent) at least through to March, when its next announcement is scheduled to take place.

What does this mean for home buyers? It means that home buying will remain more affordable for the time being, and that now is one of the best times to buy a home in Toronto.

“The Bank said it expects the pace of growth going forward to moderate by more than initially thought, but the forecast for growth this year has actually been raised slightly,” said the chief economist for the Canadian Real Estate Association, Gregory Klump. “That reflects a weaker than previously expected growth profile for the first half of 2012, followed by an acceleration in the second half of the year.”

“The Bank reiterated that its outlook remains subject to downside risks from the sovereign debt issue in Europe. Recent credit-rating downgrades to much of the euro zone point to potential contagion by way of a drop in financial market liquidity,” continued Mr. Klump. “The bottom line is that the bank rate is not going to be going up anytime soon, and we may see rates lowered should downside risks materialize.”

The next scheduled rate announcement for the Bank of Canada is expected on March 8th, 2012.

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New Way To Measure GTA Home Prices From The Canadian Real Estate Association And Toronto Real Estate Board

Posted on February 9, 2012 | Leave a comment

The Canadian Real Estate Association (CREA) and the Toronto Real Estate Board (TREB) along with several other Canadian real estate boards have developed the MLS Home Price Index, an index designed to provide a better idea of home values across Canada.

“The Toronto Real Estate Board is extremely excited to be launching the MLS HPI,” said Toronto Real Estate Board president Richard Silver in a press release. “This new approach will provide clarity for the consumer and prove to be a major improvement over any other method to measure home prices and home price change available in the marketplace today. I look forward to discussing the many benefits and uses of the MLS HPI in the coming months.”

The Home Price Index also has its own website with more information and a video tutorial, available here.

In addition, more information and examples is available in the initial Toronto Real Estate Board press release, found here.

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Toronto Real Estate Board Figures For January 2012

Posted on February 6, 2012 | Leave a comment

The Toronto Real Estate Board has released its sales figures for the month of January 2012. Sales in January 2012 were almost nine per cent higher than in January 2011, with 4,567 sales compared to 4,199 sales.

“A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers condiment in their ability to achieve the Canadian goal of homeownership,” said Richard Silver, the president of the Toronto Real Estate Board, in a press release. “The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum.”

In January 2012, the average price of a Greater Toronto Area home was $463,534, which is nine per cent higher than January of last year. But according to the Toronto Real Estate Board, an increase in new listings should calm prices.

“Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year,” said Jason Mercer, the senior manager or market analysis for the Toronto Real Estate Board. “Strong price growth is expected to attract more listings. A better supplied market should result in a slower rate of price growth, especially in the second half of 2012.”

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