Tag Archives: Canadian Real Estate Association

Canadian Home Sales Increase Slightly In January 2013

Posted on February 18, 2013 | Leave a comment

According to the latest release from the Canadian Real Estate Association, home sales across Canada increased by 1.3 per cent from December 2012 to January 2013. Home sales across Canada declined by 5.2 per cent in January 2013 compared to January of last year.

“There is little new to report about national sales activity, which continues to hold fairly steady at the lower levels first reached when mortgage rules were tightened in mid-2012,” said the president of the Canadian Real Estate Association, Wayne Moen. “That said, things are becoming more interesting among local markets, with improving sales in Vancouver and Toronto likely to come as something of a surprise to some. As always, all real estate is local, so buyers and sellers should speak to their Realtor to understand how the housing market is shaping up where they live or are considering to live.”

The actual and not seasonally adjusted average price for homes sold across Canada in the month of January was $354,754, which was an increase of two per cent over January of last year.

“Year-over-year declines in activity have received attention lately, and understandably so since they’re more exciting compared to the fairly steady month-over-month trend for national sales following change made last year to mortgage regulations and lending guidelines,” said the chief economist of the Canadian Real Estate Association. “If national sales activity remains stable near the levels we’ve been seeing since last August, then year-over-year comparisons will begin fading after the crucial spring buying season. Until then, the focus may remain on how sales were stronger in the first half of last year compared to lower but stable national activity since then.”

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Resale Home Activity Remains Stable in October 2012: CREA

Posted on November 14, 2012 | Leave a comment

According to the Canadian Real Estate Association, resale home activity across Canada has remained about the same in October 2012, as did prices.

Home sales were only down 0.1 per cent from September to October, with actual and not seasonally adjusted activity down 0.8 per cent. New home listings increased by 3.8 per cent over the months.

“Sales data in October held steady at the national level, but we are seeing some diverging trends among local housing markets,” said the president of the Canadian Real Estate Association, Wayne Moen, in a press release. “Markets in Alberta and Saskatchewan are gaining strength, while some of Canada’s traditionally most active markets have lost steam. As always, all real estate is local, so buyers and sellers should talk to their Realtor to understand how the housing market is shaping up where they live.”

The national average home price for resale homes was only a 0.02 per cent increase across Canada.

“Little has changed since national activity geared down in the wake of mortgage rules that came into force in July,” said Gregory Klump, the chief economist for the Canadian Real Estate Association. “Opinions differ about how sharply sales have slowed depending on the local housing market.”

Klump continued, “These results suggest that the Canadian housing market overall has returned to a more sustainable pace.”

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 Key Policy Rate Remains Steady

Posted on October 22, 2012 | Leave a comment

On October 23rd, the Bank of Canada announced the they were keeping their key policy rate at one per cent, the same level it has been for the last two years. This is the longest time since the 1950s that the rate has stayed the same.

According to the Canadian Real Estate Association, “much of the Bank’s latest guidance about factors influencing its decision about where interest rates are headed next (up, down or stable) was a repeat of messages contained in previous announcements this year. However, something new appeared this time around when the bank indicated it was concerned about how low interest rates were enticing households to take on more debt, and that it would bear ‘evolution of imbalances in the household sector’ in mind as to when it will raise interest rates.”

Canada is expected to have a brighter economic outlook but there are still risks like Europe’s recession and slowing growth in China that could affect the outcome.

The Bank’s advertised five-year lending rate on October 23rd was 5.24 per cent, and the next rate announcement is scheduled for December 4th.

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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Home Sales Down Across Canada in August

Posted on September 24, 2012 | Leave a comment

According to the latest national housing statistics from that Canadian Real Estate Association, resale home sales across Canada dropped by 5.8 per cent from July 2012 to August 2012. Year-over-year, Canadian home sales (not seasonally adjusted) were down by 8.9 per cent.

“While we always caution that housing market trends at the national level can and do run counter to trends in many local markets, the decline in activity in August was definitely the result of much of the country moving in the same direction,” said the president of the Canadian Real Estate Association,  Wayne Moen, in a press release. “That said, many smaller and more affordable markets bucked the national trend. As always, all real estate is local, so buyers and sellers should speak to their Realtor to understand how the housing market is shaping up where they live.”

New listings dropped by 1.7 per cent between July and August, mores in the Greater Toronto Area at 7.7 per cent.

“August’s sales figures will no doubt provide comfort to policymakers, providing the first clear indication that the recent changes to mortgage regulations aimed at cooling the market are working as intended,” added the chief economist for the Canadian Real Estate Association, Gregory Klump. “With previous changes to mortgage regulations, demand rose between the time changes were announced and their implementation, and invariably fell in the months immediately after being implemented, before recovering to long-term levels. By contrast, recent changes to mortgage regulations were in force more quickly after being announced, so home buyers had far less time to react. As a result, demand didn’t pick up just before the changes took effect, while sales declined once they did.”

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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Canadian Real Estate Association: Home Sales Down in August

Posted on September 19, 2012 | Leave a comment

According to the Canadian Real Estate Association, resale housing activity across Canada decreased significantly between the months of July and August, 2012.

“While we always caution that housing market trends at the national level can and do run counter to trends in many local markets, the decline in activity in August was definitely the result of much of the country moving in the same direction,” said the President of the Canadian Real Estate Association, Wayne Moen, in a press release. “That said, many smaller and more affordable markets bucked the national trend. As always, all real estate is local, so buyers and sellers should speak to their REALTOR® to understand how the housing market is shaping up where they live.”
Home sales were down 5.8 per cent month-to-month, and the number of new listings also decreased by 1.7 per cent. The average home price across Canada increased by 0.3 per cent year-over-year from August 2011.
“August’s sales figures will no doubt provide comfort to policymakers, providing the first clear indication that the recent changes to mortgage regulations aimed at cooling the market are working as intended,” said Gregory Klump, the Chief Economist for the Canadian Real Estate Association. “With previous changes to mortgage regulations, demand rose between the time changes were announced and their implementation, and invariably fell in the months immediately after being implemented, before recovering to long-term levels. By contrast, recent changes to mortgage regulations were in force more quickly after being announced, so home buyers had far less time to react. As a result, demand didn’t pick up just before the changes took effect, while sales declined once they did.”

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Can Of Canada Keeps Interest Rates On Hold: CREA

Posted on July 18, 2012 | Leave a comment

The Canadian Real Estate Association’s latest press release says that the Bank of Canada has kept its overnight rate target at 1 per cent as of July 17th, which is the same level it’s been at since September of 2012.

According to the release:

“The text accompanying the announcement reiterated many of the same points that were in the June 5th statement. This includes the wording of the bottom line, which leaves the door open to future rate hikes, but taken together with an overall weakening of the outlook pushes back the timing of any future rate increases.
The Bank said that recent developments were pointing to a renewed contraction in Europe, while the deceleration in growth has been greater than anticipated in China and other emerging economies. The Bank also noted that the economic expansion in the United States was continuing at a gradual but somewhat slower pace.
In Canada, the Bank expects those global headwinds will be offset by domestic factors, leading to moderate economic growth. Specifically, the Bank said, “consumption and business investment are expected to be the primary drivers of growth, reflecting very stimulative domestic financial conditions.”
That said, these will be paced by the impact of lower commodity prices on Canadian incomes and wealth, as well as by record-high household debt. The Bank also added that housing activity is expected to slow from record levels.
In light of all those factors, the Bank now expects the Canadian economy will grow by 2.1 per cent in 2012 and 2.3 per cent in 2013. That’s down from its previous projection for growth of 2.4 per cent this year and next. In contrast, the Bank now forecasts growth of 2.5 per cent in 2014, up from 2.2 per cent in the April Monetary Policy Report (MPR).”
The full release is available 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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New Mortgage Rules Announced For Canadian Home Buyers

Posted on July 4, 2012 | Leave a comment

In an attempt to cool the very heated Toronto real estate market, the government of Canada has announced a new set of mortgage rules that are set to take effect on July 9th, 2012.

As per the new rules:

Homeowners will only be able to refinance their home to 80 per cent of their home’s value, down from 85 per cent.

The maximum amortization rate for government-insured mortgages is now 25 years, from 30 years.

The government will no longer insure mortgages for homes over $1,000,000.

In response to the new mortgage rules, the Canadian Real Estate Association issued the following statement:

We believe today’s announcement is a measured response to the government’s often stated concern about household debt levels and the housing market. That being said, we would remind the government that the re-sale housing market makes a significant contribution to the economy, adding an estimated $20 billion in spin-off spending and over 165,000 jobs in 2012.
Recent statistics from The Canadian Real Estate Association indicate that the national housing market remains balanced. The impact of measures like those announced today must be closely monitored to ensure they have the anticipated impact and don’t create a spillover effect and slow the economy.
For these reasons, going forward, we would urge the government to consider the impact of further interventions in the market carefully.
REALTORS® and the government share a common interest in the value of homeownership and its contribution to the economy and the well-being of Canadians and our communities.
Property buyers and sellers should contact a REALTOR® if they are considering entering the housing or commercial real estate markets to better understand the impact of these changes in their communities.

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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Canadian Real Estate Association: Home Prices Increase In March, But Only Slightly

Posted on May 3, 2012 | Leave a comment

The Canadian Real Estate Association has released its monthly home price statistics, saying that while prices have increased slightly in March, it’s the smallest increase in monthly housing prices across Canada since June of last year.

“Overall price trends show that Canada’s housing market continues to moderate,” said the president of the Canadian Real Estate Association, Wayne Moen, in a press release. “Price increases have been shrinking since last fall. While that trend paused in March, it may in part reflect an early spring in many parts of the country, resulting in increased competition among buyers. That said, headline numbers mask some important differences in price trends among local housing markets and housing types. Since all real estate is local, buyers and sellers should talk to their local realtor to best understand how home price trends are shaping up where they live.”

Year-over-year, home prices increased by 5.1 per cent.

“The index typically experiences these types of month-over-month gains in the spring, which coincides with when the balance of supply to demand is tightest,” said the Canadian Real Estate Association’s chief economist, Gregory Klump. “With that in mind, it’s important to look at month-to-month movements in the context of how they compare to the same period in previous years. While the overall monthly price increase was on par with last year’s figure, it masks slowing price momentum in the Lower Mainland area of British Columbia. Slower price grains there were offset in March by a modest acceleration of price gains in Calgary, Toronto and Montreal.”

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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Spring Housing Market Off To A Good Start: CREA

Posted on April 20, 2012 | Leave a comment

According to the latest news release from the Canadian Real Estate Association, the Canadian spring housing market is off to a good start with home sales rising 2.5 per cent from February to March.

“The spring housing market is off to a good start,” said the president of the Canadian Real Estate Association, Wayne Moen, in a press release. “The number of sales and newly listed properties are up from levels last year, and the vast majority of housing markets remain balanced. That said, all housing is local, so buyers and sellers should talk to their local realtor to understand current and prospective trends where they live.”

Year over year, home sales increased by 1.6 per cent.

“Average prices are up from year-ago levels in most large urban centres,” said the chief economist for the Canadian Real Estate Association, Gregory Klump. “The slight decline in the national average price points to a tug of war between Toronto and Vancouver from the standpoint of their sales mix compared to last year.”

Regarding home sales activity in Toronto:

“At the same time, overall home sales activity in Toronto is stronger than it was last spring, and higher-end home sales are up from year-ago levels. Being by far the most active housing market in Canada, Toronto represents the single biggest factor supporting national average price compared to last year.”

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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