Canadian home sales edge lower in June

July 17, 2012 · Filed Under CREA Reports, Real Estate Canada · Comments Off 

According to statistics released yesterday by The Canadian Real Estate Association (CREA), national resale housing activity edged lower on a month-over-month basis in June 2012.  Price gains remained strong in Toronto, continued slowing in Greater Vancouver, and accelerated in Calgary.
Highlights:
• Home sales down 1.3% from May to June.
• Actual (not seasonally adjusted) activity stood 4.4% below levels in June 2011, marking the first yearover-year decline since April 2011.
• The number of newly listed homes climbed 1.4% from May to June.
• Fewer sales and a rise in new listings resulted in a more balanced national housing market.
• The national average home price slipped 0.8% on a year-over-year basis in June.
• The Aggregate Composite Benchmark home price was up 5.12% year-over-year in June.

Sales over Multiple Listing Service® (MLS®) Systems in Canada eased 1.3 per cent on a month-over-month basis in June 2012. This follows a 3.4 per cent decline posted in May.

National activity was down from the previous month in slightly more than half of all local markets, with Greater Toronto and Vancouver contributing most to the small decline.

“Canada’s housing market lost a little altitude in June, but it’s still flying pretty high,” said Wayne Moen, CREA President. “That said, sales activity and average prices bucked the national easing trend in a number of markets, which underscores that all real estate is local. Buyers and sellers should talk to their REALTOR® to understand how the housing market is  shaping up in their area.”

Actual (not seasonally adjusted) activity was down 4.4 per cent in June 2012 compared to the same month last year. This marks the first year-over-year decline in national activity since April 2011.

Boosted by strong activity in March and April, a total of 257,193 homes traded hands over Canadian MLS® Systems in the first half of 2012. This is up 4.7 per cent from levels reported over the same period in 2011, and marks the strongest  sales for the first half of any year since 2007.

“Home buyers didn’t rush their purchases before the most recently announced changes to mortgage regulations came  into effect,” said Gregory Klump, CREA’s Chief Economist. “That’s a big change compared to what we saw as a response to previously announced changes. It will take some time before the compound effect of previous and recent changes to regulations on Canada’s housing market becomes apparent.”

The number of newly listed homes rose 1.4 per cent in June compared to May.

Nationally, the number of months of inventory stood at six months at the end of June, up slightly from 5.9 months of  inventory at the end of May. The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply  and demand.

The MLS® Home Price Index (MLS® HPI) is a more accurate measure of Canadian home price trends, since it is not  distorted up or down by changes in the mix of sales. It tracks home price trends in five of Canada’s most active housing  markets, including Greater Vancouver, the Fraser Valley, Calgary, Greater Toronto, and Montreal. These markets  account for nearly half of all home sales activity over Canadian MLS® Systems.

The Aggregate Composite MLS® HPI rose 5.1 per cent from May to June 2012. This represents a slight deceleration from the 5.2 per cent gain reported in  May. The year-over-year increase was again highest in Greater Toronto (7.9%), followed by Calgary (5.6%), Greater  Montreal (2.7%), the Fraser Valley (2.6%), and Greater Vancouver (1.7%).

Canadian home price trends continue to diverge in April

May 29, 2012 · Filed Under CREA Reports · Comments Off 

According to statistics released May 25, 2012 by The Canadian Real Estate Association (CREA), the MLS® Home Price Index, the leading measure of Canadian home prices, increased in April 2012.

 Highlights:

  • The Aggregate Composite MLS® Home Price Index in April 2012 was up 5.2% year-over-year.
  • Toronto again posted the largest year-over-year increase (7.9%), with more modest gains in Calgary (4.0%), Vancouver (3.7%), the Fraser Valley (2.7%), and Montreal (2.3%).
  • Year-over-year price gains accelerated in April in Toronto and Calgary but slowed in Vancouver and the Fraser Valley and were little changed in Montreal.
  • Single family home prices again posted the biggest gains (6.4%), with apartment unit and townhome sales making more modest headway (3.6% and 2.7% respectively).

The MLS® Home Price Index (MLS® HPI) rose 5.2 per cent year-over-year in April 2012. The increase was similar to those for the previous two months and among the smallest since last August. However, the moderation in overall price gains in recent months masks diverging trends among the major Canadian markets.

 

Interesting Real Estate links throughout Canada

February 16, 2010 · Filed Under Real Estate Articles, Real Estate Canada, Real Estate Roundup, St. John's Real Estate · Comments Off 

MLS Home sales strong according to CREA

September 15, 2009 · Filed Under St. John's Real Estate · Comments Off 

The Canadian Real Estate Association (CREA) has just released last months stats, and say Canadian MLS homes sales are strong for August.

Below are some paragraphs outlining the article. For the entire article click here

According to statistics released, a total of 42,483 homes traded hands via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards in August 2009. This represents an increase of 18.5 per cent from the same month last year, and the third consecutive year-over-year gain of more than 15 per cent. Sales were 6.6 per cent below the record for the month of August set in 2007.

Resale activity in August 2009 was up from year-ago levels in about approximately three-quarters of all local markets. Year-over-year gains in Vancouver (117 per cent), Toronto (27 per cent), Calgary (17 per cent) and Montreal (nine per cent) contributed most to the national increase in activity. Aggregate MLS® home sales activity for 25 major markets posted the third consecutive increase from year-ago levels of more than 20 per cent in August.

Demand continues to improve in Canada’s more expensive housing markets, drawing the national average price upward. The national MLS® residential average price rose 11.3 per cent from year-ago levels to $324,779. This is the highest national average price for the month of August.

Don Campbell’s interview on The Hour with George Stroumboulopoulos

March 19, 2009 · Filed Under Real Estate Canada · Comments Off 

Last night, The Hour with George Stroumboulopoulos had a great interview with Don Campbell.  Don is a Real Estate Consultant, educator, investor and author of a some excellent real estate investing books, his newest Real Estate Investing in Canada: How to Create Wealth with the ACRE System.Real Estate Investment Newtork

The main discussion was based around whether the Canadian real estate market is going through a crash or just a correction. In interesting comment was how he referred to the last three real estate years as “The Tiger Woods Years”.  (ie can buy just about anything and make money).  The market is now in a correction stage according to Mr. Campbell.

Yes market activity has slowed, prices have dropped and new construction starts lower, but he is preaching that this is just a market correction, be smart on what/where you buy.

He was asked: what conditions do you look for with regards to buying a property in a particular city?

1) look for population increasing

2) average income increasing

3) affordable properties

4) highly accessible (ring road exits, subway, train stops etc)

What five cities in Canada are on his top list for the next 5 – 7 years?

1) Edmonton

2) Calgary

3) Barrie

4) Kitchen-Waterloo-Cambridge

5) Hamilton

Canadian Real Estate Outlook for 2009

January 6, 2009 · Filed Under Market Trends, Real Estate Canada · 1 Comment 

Business News Network (bnn.ca) had an interview this morning with Phil Soper, President and CEO of Royal Lepage Real Estate Services discussing the Canadian Real Estate Outlook for 2009.

Historically low interest rates, stable local economies and increasing affordability should support Canada’s residential real estate market during transitioning period.

He stressed that we will see a correction in 2009 and not a crash like we are seeing in the US.  Nationally the real estate market peaked in the 4th quarter of 2007 so we are 4 quarters into the “correction” already.

His prediction is a 3% decrease nationally with higher decreases in the bigger cities such as Toronto and Vancouver which will see 4% and 9% declines respectively. Halifax is expected to remain relatively flat with a 1% gain. (Side note: the St. John’s real estate market was not mentioned)

He basically went on to say that the first quarter will be a difficult quarter but will recover in the second half of ’09.  I feel that this will be the trend with the Newfoundland market as well.

Mortgage rates are still at all time lows and he pointed out that most buyers are not overly concerned with the “sticker price” on a property but are more concerned with the monthly mortgage payments.

Read the full press release Correction, not crash for Canadian real estate market in 2009; Average house prices forecast to fall 3.0 per cent

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