The real estate board in the Okanagan (OMREB) surveys buyers agents to find out where the buyers came from and what they purchased. Here is October 2011′s summary results.
Property Type:
21.9% of purchases were by Move-Up Buyers
19.5% by First Time Buyers
13.0% moving from Single Family Home to Strata Unit
12.4% buying Revenue/Investment Property
7.7% moving into Retirement Home/Seniors Community
6.5% Recreation Property Buyers
1.8% moving from Strata property to Single Family Home
Moving From:
46.0% from Within OMREB Board Area
15.3% from Other Areas in BC
14.2% from Alberta
13.6% from Lower Mainland/Vancouver Island
4.5% from Saskatchewan/Manitoba
3.4% from Eastern Canada/Maritimes
2.8% from Outside Canada
0.0% from NWT/Yukon (second month reported)
More details: http://www.omreb.com/matrix/documents/October%202011%20Buyers%20Survey%20Results.pdf
Christine Dobby Nov 15, 2011 – 10:58 AM ET | Last Updated: Nov 15, 2011 12:57 PM ET
With sales of existing homes in Canada rising in October to the highest level since January, the Canadian Real Estate Association boosted its forecast for resale activity for 2011.
The industry group released data on October sales activity as well as a revised forecast for the year on Tuesday.
National sales of existing homes increased 1.2% from the previous month, building on a gain of 2.5% in September. Price gains however cooled to 5.5%, the smallest gains since January.
A total of 397,561 resale units have traded hands so far this year, CREA said, up 1.8% from levels in the first 10 months of 2010.
Here’s what you need to know about the booming Canadian housing market:
Ontario leads the way
Third-quarter sales activity in the province was stronger than forecast, while the rest of the country came in broadly in line with expectations, the CREA said.
It was the strength of activity in Ontario that prompted the CREA to boost its annual forecast for 2011 to 1.4%, up from 0.9%.
The industry group now predicts national sales of 453,300 for the year, compared with 446,915 in 2010.
198,000 of 2011′s residential sales are expected to come from Ontario, with Quebec and British Columbia expected to have sales of 77,000 and 76,600, respectively.
Home prices are still up but showing signs of cooling down
CREA kept its national average home price forecast for the year little changed at $362,700. That’s an annual increase of 7.0% compared with $339,049 in 2010.
Prices are expected to remain flat next year, with the CREA forecasting $362,700 again for 2012.
The industry group pointed to moderating prices in Vancouver in the third quarter compared with the first half of the year, with sales of multi-million dollar properties in that city returning to “more normal levels.”
CREA said the national average price in October rose 5.5% from a year earlier to just under $362,899, the smallest increase since January.
The balance of supply and demand is tight but the market remains on solid footing
October’s monthly rise in sales resulted in a slightly tighter balance of supply and demand, but the national housing market remains “firmly rooted in balanced territory,” the CREA said.
The national sales-to-new listings ratio, a measure of market balance, stood at 53.4% in October, up from 52.8% in September.
Low interest rates continue to bolster the market
CREA also revised its forecast for 2012 upward slightly, predicting a smaller easing than previously expected of 0.5% to 451,200 units.
The uptick is largely due to expectations that Canada’s interest rates will stay low until well into 2012, CREA said.
But domestic and global economic headwinds could put pressure on the sector
“A number of factors will keep Canada’s housing market in check as interest rates remain low,” said Gregory Klump, CREA’s chief economist.
He pointed to tightened mortgage regulations, high household debt and slower economic and job growth as possible headwinds.
However, Mr. Klump noted that persistent news of global economic uncertainty has put only minor dents in consumer confidence to date.
“How confidence evolves depends on how global turmoil plays out over the coming months,” he said.
In its Fall 2011 Housing Market Outlook report, Canada Mortgage and Housing says that demand for new and existing homes in Kelowna is expected to strengthen in 2012. Favourable mortgage interest rates coupled with stronger employment growth will support modest growth in demand for housing next year.
Sales of existing homes are expected to increase 11 per cent in 2012. Home buyers will continue to benefit from an ample supply of listings available for sale. Expect existing home prices to edge up by three per cent as demand improves and the supply of listings is drawn down later next year.
Kelowna area housing starts are forecast to increase 18 per cent to 1,125 homes in 2012.
To view the complete report click here.
The Appraisal Institute of Canada offers an online guide which helps homeowners calculate the average return on their investment in a renovation project.
Choose “bathroom renovation” and plug in an outlay of, for example, $30,000 into the calculator and RENOVA niftily tallies a 75- to 100-per-cent return, which translates to an added $22,500 to $30,000 on the resale value of your home. Kitchens also rank well up the list with a similar 75 to 100 per cent payback.
Swimming pools, home theatre rooms and interlocking brick driveways yield only 25 to 50 per cent. The payback for installing central air conditioning ranges widely, from 25 to 75 per cent. Putting in a skylight may turn out to be a waste of cash, with the estimated return varying from zilch to 25 per cent at the most.
Builder Doug Campbell of DC Construction Ltd. believes the hectic pace of the real estate market in the Toronto area this spring is also driving the reno business. He has been on a stream of visits with real estate agents and potential purchasers who ask him to look over houses before an offer even goes in. How much will it cost to replace that antiquated knob and tube wiring, they wonder, or add a family room with a master suite above?
“When there’s a lot of turnover and people are buying, they always want to do work.”
Mr. Campbell’s rule of thumb, when owners ask for his advice, is that about 75 per cent of the money spent on a substantial reno will boost the home’s value. The other 25 per cent is an investment in the intangible – warm floors underfoot, extra counter space or a view to the garden.
He asks new clients about their plans for the next five to 10 years, because that will determine where they should invest the most cash.
If clients plan to sell again within a few years, Mr. Campbell recommends that they hold costs down on five-star items such as satin-polished nickel faucets where a more economical choice will do.
“A set of taps for a bathroom can cost $500 or it can cost $2,000. Nobody would appreciate that extra $1,500.”
Homeowners have become much more energy-conscious in recent years, he finds, so people often call on him to bulk up the insulation. Eco-friendly features such as tankless water heaters are increasingly popular.
In Vancouver, ReMax broker David Campbell says the market for townhouses and condos has started to slow after a stretch of torrid sales. But a lack of inventory means that potential buyers are competing for single-family houses in the more popular neighbourhoods.
If people have a solid income, they will pay a rich price for the coveted single-family house that is move-in ready. “They’re paying a premium if it was done with city permits.”
Nineteen times out of 20, he says, it’s cheaper to tear down a tiny bungalow than to build an addition, raise the roof or finish the basement. But many older houses need updating.
Mr. Campbell counsels homeowners who are preparing a house for sale to look at each room in the context of the entire property. He recently evaluated one house where the owner had invested in lovely landscaping and fresh decor. He was startled to walk into an overwhelmingly blue bathroom that seemed to belong to another era.
“If you go and change one thing, you’re going to make other things look dated by doing that. You’ve got to look at the rest of the package.”
He urged the homeowner to update the bathroom because, in Mr. Campbell’s opinion, that reno is a fast and inexpensive way to make a house more appealing, whereas installing a kitchen for a quick turnover does not pay off.
“With the cost and time of putting one in, you’ll miss the spring market.”
Calgary-based interior designer Monica Stevens says the uncertainty surrounding the housing market in that city is bolstering the renovation business.
If you go and change one thing, you’re going to make other things look dated by doing that. You’ve got to look at the rest of the package. — Broker David Campbell
Some homeowners have watched the value of their properties fall from the lofty levels of recent years, so they have decided not to settle in for the long term and create a house they love. Others are taking advantage of a cooler market and buying a second house without even attempting to sell the first.
“Both groups are capitalizing,” said Ms. Stevens from San Francisco, where she was accompanying a client on a shopping excursion.
Ms. Stevens says kitchens and bathrooms are still the rooms most often chosen for renewal, but she is seeing a move away from one large, combined kitchen and family room back toward more delineated space.
Many people who tried cocooning with the whole family in a great room are now clamouring for some space of their own, which illustrates another caveat: It can be unwise to follow a reno trend just because all of the neighbours are doing it.
When the economic downturn hit Calgary, Ms. Stevens says, trades became more available, and homeowners have become immersed in new projects. Among her clientele, many are splurging on luxurious fixtures and finishes.
“Once they get going on a renovation they make a full commitment,” Ms. Stevens says. When the walls are torn open, the house is filled with drywall dust and the family is living in a rental apartment around the corner, clients want to be rewarded with a beautiful house at the finish.
“You’re only going to do it once.”
Source: http://www.theglobeandmail.com/globe-investor/personal-finance/home-renovation-how-much-to-spend-and-where/article1558903/page2/
Average Metro Vancouver residential price soars 26 per cent in a year to $832,000, but increase is misleading, economist says!
By Brian Morton, Vancouver Sun June 16, 2011
Home sales in B.C. edged down one per cent to 7,857 units in May compared to the same month last year, according to a B.C. Real Estate Association survey released Wednesday.
The report also said that the average price of a home climbed 20 per cent to $596,872 last month compared to May 2010.
However, BCREA’s chief economist said the soaring price shouldn’t be taken too seriously, because the provincial numbers were skewed by sales of expensive homes in Metro Vancouver’s priciest neighbourhoods.
“With the average price, you need to take it with a grain of salt,” Cameron Muir said. “The reality is that the average price does not indicate where the market is going. It [Vancouver housing] is skewing the average price higher than market conditions suggest.”
Muir said that a more precise indication of the overall market is the benchmark price -only tallied in Metro Vancouver and the Fraser Valley -which measures the price of a typical home in the area.
“The average price is up 26 per cent in [Metro] Vancouver [to $832,000], but the benchmark price has only gone up about six per cent year-overyear.”
Muir said that in Metro Vancouver, there has been a higher proportion of pricier single detached home sales this year than a year ago, especially in the priciest markets -Vancouver’s west side, Richmond and West Vancouver.
Of B.C.’s overall drop in sales, Muir said that tighter mortgage rules, tepid employment growth and advance buying during the first quarter kept B.C. home sales on a lower note in May. “However, recent downward pressure on mortgage interest rates is expected to provide some incentive to consumers over the summer months.”
Year-to-date, the BCREA survey said, B.C. residential sales dollar volume increased 15 per cent to $20.1 billion, compared to the same five-month period last year. Sales dropped one per cent to 34,191 units over the same period.
While the report noted a 25.7-per-cent price increase year-over-year from $662,000 to $832,000 in Metro Vancouver, that wasn’t the same elsewhere in the province.
The south Okanagan saw the average price drop 5.9 per cent in May compared to May 2010, from $352,000 to $331,000, while Kootenay saw the average price drop 4.6 per cent, from $263,000 to $251,000.
However, the Fraser Valley recorded a 15.1-per-cent average price increase in the year, from $458,000 to $527,000.
Nationally, home sales fell in May by 0.6 per cent from the previous month, but were up 2.7 per cent on the year, the Canadian Real Estate Association said.
Sales fell to 36,410 units on a seasonally adjusted basis, from 36,621 units in April, the Ottawa-based group said in a statement Wednesday. Sales during the month were down 0.7 per cent in dollar terms and up 12 per cent from May last year.
The average sale price was up 8.6 per cent from a year earlier, with CREA saying the number was heavily skewed by the more affluent markets in Vancouver and Toronto.
Without Vancouver, the yearover-year increase would only be 5.6 per cent, according to CREA.
The Real Estate Board of Greater Vancouver and the Fraser Valley Real Estate Board reported earlier this month that, in typical springtime fashion, sales are on the upswing in Metro Vancouver and the Fraser Valley.
The REBGV noted that home sales reached 3,377 in May, a seven-per-cent increase over the 3,156 sales in May 2010. As well, the benchmark price for all properties increased 6.2 per cent to $627,568 in May 2011 from $590,662 in May 2010.
The Fraser Valley Real Estate Board processed 1,608 property sales in May, a nine-percent increase over May 2010, while noting the benchmark price for detached homes rose 2.8 per cent year-over-year to $529,810.
Meanwhile, 56 per cent of first-time homebuyers in B.C. are looking for a home with a rental unit, according to the 2011 TD Canada Trust First Time Homebuyers Report.
By Contributed – Kelowna Capital News
Published: June 06, 2011 2:00 PM
Updated: June 06, 2011 2:55 PM
A new report by the Chartered Accountants of B.C. indicates that 2010 showed signs of economic recovery.
The BC Check-Up, Regional Edition shows that employment numbers in the Thompson-Okanagan Development Region increased, and the unemployment rate declined. Business incorporations rebounded and the number of business establishments continued to increase. However, for a second consecutive year capital investment declined.
“The numbers for 2010 are cautiously optimistic,” said Jeff Omland, CA, partner with Omland Heal Chartered Accountants in Penticton. “Following the losses sustained in 2009, last year was marked by job growth and a decline in unemployment, particularly among young workers. The number of business establishments increased for the eighth consecutive year, and business incorporations jumped, rising by 8.5 per cent.”
According to the report, the region’s economy gained 9,200 new jobs. The region’s service sector added 8,200 jobs, or 89 per cent of total employment growth, with eight out of eleven service industries reporting job gains. The information, culture and recreation industry grew by 2,800 jobs, trade added 3,700 jobs, transportation and warehousing grew by 2,200 jobs, and education increased by 1,300 new jobs.
A large increase in residential building permits accounted for job growth in professional, scientific and technical services and finance, insurance, real estate and leasing.
Although the region’s goods-producing sector reported an overall net job gain of 1,000 jobs, losses were sustained by the agriculture and construction industries, which lost a combined total of 3,100 jobs.
The unemployment rate in the Thompson-Okanagan declined from 9.4 per cent to 8 per cent. The youth unemployment rate shrank 2.5 percentage points to 10.6 per cent, and was lower than the provincial average of 11.3 per cent.
The BC Check-Up found that 202 new business incorporations were established in 2010, and business growth was due entirely to a surge in self-employment. The increase in self-employment made up for losses in both small and medium-size businesses.
For the ninth consecutive year corporate bankruptcies declined. This positive, enduring trend suggests that both entrepreneurs and investors in the region were cautious and resilient enough to weather the previous year’s economic challenges.
On a less positive note, capital investment and development in the region declined for the second consecutive year. New project proposals dropped from 34 in 2009 to 15 in 2010, and the total value of projects declined, from $2.8 billion to $1.4 billion. New projects starting construction in 2010 were also down, from 23 projects worth $1.7 billion in 2009, to 12 valued at $0.8 billion.
“The region’s economic recovery has been, and will continue to be, dependent on the strength of our service-producing sector,” continued Omland. “As activity in other industries and sectors begins to improve, we are sure to see further employment growth and economic recovery in the year to come.”
The Thompson-Okanagan Development Region comprises five Regional Districts, the Okanagan-Similkameen, Thompson-Nicola, Central Okanagan, North Okanagan and Columbia-Shuswap, and accounts for about twelve per cent of the provincial population.
The BC Check-Up, Regional Edition looks at each region as a place to work, invest, and live. The report is available online at: www.bccheckup.com.
By Alison Appelbe, Postmedia News May 20, 2011
If you’re on the lookout for a bargain property, the Okanagan may be your best bet.
But be quick. Because the real-estate scene in this hugely varied destination — from Shuswap Lake in the north, through the major ski resorts and urban Kelowna, to the lakefronts and vineyards of the Central Okanagan and south to desert-dry Osoyoos — is on the mend.
While the Okanagan remains, for the moment, a buyer’s market, the prices for every type of property are creeping back up and the inventory is dissipating.
At the same time, the market is maturing — or changing. Rather than solely eyeing short-term vacations, some condo-purchasers have retirement in mind. Extended families are pooling their resources for, maybe, a ski chalet. Increasingly, purchasers are Western Canadians, rather than Americans and other outsiders.
The Okanagan was badly hit by the 2008 recession, and by the summer of 2009, prices were in free fall. Recreational and regular properties were discounted by 30 per cent and more, foreclosures were not uncommon, and some construction came to a halt.
Today, says Gary August, longtime realtor and co-owner of Coldwell Banker Horizon Realty in Kelowna, the market is improving.
Comparing the first four months of 2008 with the first four months of this year, prices are down 21 per cent for condos; between seven and 8.5 per cent for single-family and town houses; and by 14.5 per cent for lakeside homes costing $2 million or more.
According to statistics from August, that puts the median price for a condo today at $213,000, a town house at $330,000, a single-family house at $461,000, and a luxury lakeshore home at $2,025,000 (the latter, a 2010 figure, given a dearth of sales so far this year). In short, says August: “Our market is better than it was two years ago, but down from the peak of 2008.”
Steve Ladurantaye
Globe and Mail Update
Canadians are putting a larger portion of their earnings toward their homes, the Royal Bank of Canada said Friday, and interest rate increases are likely to put further pressure on homeowners in the coming months.
The problem is especially pronounced in Vancouver, where the bank estimated families must now dedicate 72 per cent of their household income to pay the mortgage, property taxes and utilities on a bungalow. That’s much higher than Toronto, where it would take 47.5 per cent.
The bank’s quarterly survey found affordability slipped in the first quarter of the year across the country, as higher prices in most markets meant buyers had to dedicate a larger share of their household budget to housing costs.
“We expect that the Bank of Canada will soon resume its campaign to normalize its interest rate policy, which will adversely impact housing affordability in Canada,” said Robert Hogue, senior economist at RBC. “Continued growth in household incomes, however, will likely soften the blow.”
The bank’s Housing Affordability survey measures the amount of pre-tax household income needed to pay for a certain type of home. During the first quarter, all three housing types tracked became less affordable. The percentage for each category is how much of a family’s income it takes to pay for housing costs, including mortgage payments, utilities and property taxes.
The detached bungalow benchmark rose by 0.7 per cent of a percentage point to 40.5 per cent of pre-tax income, while a two storey home increased by 0.2 to 46.2 per cent and a condo gained 0.2 to 27.2 per cent of pre-tax income.
“Interest rates will likely soon start to rise again, leading to a period of steady increases in homeownership costs. This, in turn, will contribute to a flattening in Canadian housing demand going forward,” said Mr. Hogue in a statement. “We could experience some turbulence this spring and summer, given that new tighter mortgage lending rules in March and April likely shifted home buying activity to earlier in the year.”
The report broke down affordability in major centres, saying that Vancouver’s “significant gains in property values drove the already elevated cost of homeownership even higher.” Toronto, meanwhile, saw “somewhat tense market conditions” make homes less affordable.
“Despite the latest erosion in affordability, provincial levels generally continue to stand near their long-term averages, suggesting that owning a home remains affordable or, at worst, slightly unaffordable across Canada – with Vancouver being a notable exception,” said Mr. Hogue.
The affordability readings on a standard bungalow in Canada major cities were: Vancouver 72.1 per cent (up 3.4 percentage points from the last quarter), Toronto 47.5 per cent (up 0.8 of a percentage point), Montreal 43.1 per cent (up 2.0 percentage points), Ottawa 39.0 per cent (up 0.4 of a percentage point), Calgary 35.9 per cent (up 0.9 of a percentage point) and Edmonton 31.5 per cent (up 0.5 of a percentage point).
STEVE LADURANTAYE
Globe and Mail Update
Published Monday, May. 09, 2011 10:42AM EDT
Last updated Wednesday, May. 11, 2011 1:51PM EDT
The Canadian Real Estate Association has gone back to the drawing board again, saying the number of multimillion-dollar Vancouver deals have “surged unexpectedly” as it raised its forecast for the year.
The national trade association said the average national resale price will gain four per cent by the end of the year because of high prices in Vancouver. In its last forecast – made in early February – CREA said the price would advance 1.3 per cent.
Prices in Vancouver have gained almost 30 per cent in the last year, causing concern among many in the industry who are concerned about the sustainability of such gains. Douglas Porter, deputy chief economist at BMO Nesbitt Burns, said while sales have softened across the country the risk of a sharp correction is “highly concentrated in geographical terms.”
He said while sales have softened across the country, the risk of a sharp correction is “highly concentrated in geographical terms.”
In March, CREA said the national average resale price was an all-time high of $366,000. But if Vancouver is stripped from the figure, the average price would be $327,000. Twenty two of the 25 cities surveyed posted price gains in March, with Calgary, Edmonton and Victoria the only exceptions.
CREA also added that sales would also be stronger than it expected in 2011, although still slower than 2010. It expects 441,000 sales will take place, down 1.3 per cent from a year ago. It previously suggested a decline of 1.6 per cent.
Forecasting has proven difficult for the association – in November it said sales would fall by 9 per cent. In the same forecast, it said the national average price would pull back slightly in 2011.
Private sector forecasts are also varied – Capital Economics has suggested prices could fall as much as 25 per cent over the next several years, while the major banks expect prices to moderate as higher interest rates keep people out of the market.
CREA president Gary Morse said mortgage rates “remain very attractive and are keeping financing within reach for many homebuyers.
Those rates are expected to climb, however, and while inexpensive borrowing has helped many homeowners stay current on their payments there are signs that they are under increasing stress. In Alberta, for example, the number of people three months or more late on their mortgages is double the national average at 0.87 per cent.
The rising rate of delinquency comes as economists warn that Canadians are under rising pressure when it comes to servicing debts. As interest rates move higher in the coming months, many could find it even harder to make their monthly payments.
In a statement Monday, CREA’s chief economist Gregory Klump said even if rates increase they will be “within short reach of current levels.”
“Continuing job growth will underpin housing demand, keeping the housing market in balance and stabilizing home prices.”
http://www.theglobeandmail.com/report-on-business/economy/housing/crea-hikes-forecast-for-home-prices/article2015068/
1. What is the home buyers’ tax credit (HBTC)?
For 2009 and subsequent years, the HBTC is a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., generally means that the closing is after this date).
2. How is the new HBTC calculated?
The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.
3. Am I eligible for the HBTC?
You will qualify for the HBTC if:
- you or your spouse or common-law partner acquire a qualifying home; and
- you did not live in another home owned by you or your spouse or common-law partner in the year of acquisition or in any of the four preceding years.
If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first-time home buyer. However, the home must be acquired to enable the person with the disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
A qualifying home is a housing unit located in Canada acquired after January 27, 2009. This includes existing homes and those being constructed. Single-family homes, semi‑detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings all qualify. A share in a co‑operative housing corporation that entitles you to possess, and gives you an equity interest in, a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.
As well, you must intend to occupy the home or you must intend that the related person with a disability occupy the home as a principal place of residence no later than one year after you buy it.
5. Who is considered a person with a disability for purposes of the HBTC?
For purposes of the HBTC, an individual eligible for the disability tax credit (DTC) is one for whom an amount can be claimed under the DTC for the year in which the home is acquired, or could be claimed if costs for attendant care or care in a nursing home were not claimed for the [Medical Expense Tax Credit].
6. If I buy a house, can my spouse or common-law partner claim the HBTC?
Either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $750.
7. My friend and I intend to jointly purchase a home, and we both meet the conditions for the HBTC. Can we both claim the credit?
Either one of you can claim the credit or you can share the credit. However, the total of your combined claims cannot exceed $750.
8. Do I have to register the acquisition of the home under the applicable land registration system?
Yes. Your interest in the home must be registered in accordance with the land registration system applicable to where it is located.
Beginning with the 2009 personal income tax return, line 369 is incorporated into the Schedule 1, Federal Tax to allow you to claim the credit in the year in which you acquired the qualifying home.
10. Do I have to submit any supporting documents with my income tax return?
No. However, you must ensure that this information is available, should it be requested by the Canada Revenue Agency (CRA).
11. Is the HBTC connected to the existing Home Buyers’ Plan?
No. Although some of the eligibility conditions for the HBTC and the Home Buyers’ Plan are similar, the two are not connected. Your eligibility for the HBTC will not change whether or not you also participate in the Home Buyers’ Plan.
12. Where can I get more information about the new HBTC?
The CRA encourages taxpayers to check its Web site often—all new forms, policies, and guidelines are posted there as soon as they become available.
September 24, 2009
Kelowna, BC (Sept. 24, 2009) — With the worst of the recession over, residential real estate markets in major Canadian centres are poised for growth in the final quarter of 2009, according to a report released today by RE/MAX.
The RE/MAX Bricks and Mortar Report found the bounce back that began in early Spring has made this recession one of the shortest on record for real estate. Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well-underway. Percentage increases in sales from January to August 2009 were led by Vancouver, (up a substantial 14 per cent to 23,158), Victoria (up 7.4 per cent to 5,266), Edmonton (up 6.2 per cent to 13,691), Regina (up five per cent to 2,597), Ottawa (up 2.4 per cent to 10,830) and Toronto (up 1.8 per cent to 58,421). Housing values are already ahead of record-breaking 2008 levels in seven of the 11 markets surveyed, including Newfoundland-Labrador (18.1 per cent year to $203,584), Regina (6.4 per cent to $244,088), Halifax-Dartmouth (3.5 per cent to $239,633), Winnipeg (3.5 per cent to $207,006), Ottawa (3.3 per cent to $301,684), and Toronto (up 0.3 per cent to $385,978). Nationally, average price hovers at $312,585, up 0.5 per cent over one year ago.
“The strength of the residential housing sector cross-country has taken many economists and housing analysts by surprise once again,†says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “In terms of its impact on the resale market, by historical standards, this recession was one of the mildest. The resilience of bricks and mortar has been demonstrated time and again. While there may still be some challenges down the road, the worst is definitely behind us in the housing industry.â€
The recovery of Canada’s resale housing markets speaks to the tremendous value Canadians place on the importance of owning a home. The number of Canadians overall who own a home has increased since 1981 from 62.1 per cent to 68.4 per cent, with some markets posting even higher homeownership rates — Calgary (74.1), St. John’s (71.5), Regina (70.1), and Edmonton (69.2). Significant gains have also been made over the same period in markets such as Ottawa — where homeownership levels rose from 51.4 per cent to 66.7 per cent — and Toronto, where levels rose fro m 57.3 to 67.6 per cent.
“Markets are heating up across the country,†says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Purchasers are clearly taking advantage of affordable prices and rock bottom interest rates. Those who missed the boat in years past have found that sitting on the sidelines can be a costly move. Prices are on the upswing and inventory levels are tightening, so the push toward homeownership is expected to continue throughout the Fall and possibly into early 2010.â€
Over the past thirty years, the Canadian residential real estate market has experienced three major downturns – 1981, 1989, and 2008. While there have also been regional fluctuations throughout the years, return on investment over this period has been substantial, with Vancouver, Victoria, Toronto, Regina and Ottawa leading the country in terms of price appreciation.
The overall stability of real estate as an investment has also played a role. Markets like Halifax-Dartmouth, Regina, Ottawa, Winnipeg and London have provided steady returns (especially in recent years), with minimal fluctuation.
Public sentiment can best be illustrated by a recent Angus Reid Omnibus Survey* that asked the question “In which do you feel more comfortable investing your money? The stock market or real estate.†Out of 1,000 respondents from coast-to-coast, 77 per cent chose real estate. The results of the RE/MAX Bricks and Mortar Report are clearly representative of this national dynamic at work.
RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information, visit: www.remax.ca.
* The Angus Reid Omnibus Survey was conducted on September 15, 2009 and yields a margin of error of +3.1 per cent, 19 times out of 20.
Homeownership Rates
|
||
|
Canada and Major Centres
|
||
|
1981
|
2006
|
|
|
Canada
|
62.1
|
68.4
|
|
Metropolitan Areas*
|
||
|
St. John’s
|
69.5
|
71.5
|
|
Halifax
|
55.6
|
64.0
|
|
Ottawa
|
51.4
|
66.7
|
|
Toronto
|
57.3
|
67.6
|
|
London
|
58.0
|
65.9
|
|
Winnipeg
|
59.1
|
67.2
|
|
Regina
|
65.4
|
70.1
|
|
Calgary
|
58.4
|
74.1
|
|
Edmonton
|
57.9
|
69.2
|
|
Vancouver
|
58.5
|
65.1
|
|
Victoria
|
59.8
|
64.7
|
|
Source: Canada Mortgage and Housing Corporation (May 2008)
|
||
|
*Homeownership rates based on 1986 boundaries for the Census Metropolitan Area (CMA)
|
||
|
Top Performing Markets by Price Appreciation
|
|||
|
|
1980
|
YTD 2009
|
% Increase
|
|
Market
|
Avg. $
|
Avg. $
|
1980 – 2009
|
|
Greater Vancouver
|
$100,065
|
$574,061
|
473.7%
|
|
Victoria
|
$85,066
|
$466,611
|
448.5%
|
|
Greater Toronto
|
$75,694
|
$385,978
|
409.9%
|
|
Regina
|
$48,628
|
$244,088
|
402.0%
|
|
Ottawa
|
$63,177
|
$301,684
|
377.5%
|
|
Halifax-Dartmouth
|
$53,161
|
$239,633
|
350.8%
|
|
Winnipeg
|
$50,491
|
$207,006
|
310.0%
|
|
Calgary
|
$93,977
|
$380,489
|
304.9%
|
|
London – St. Thomas
|
$55,210
|
$213,683
|
287.0%
|
|
Newfoundland & Labrador
|
$52,768
|
$203,584
|
285.8%
|
|
Edmonton
|
$84,623
|
$319,939
|
278.1%
|
|
Canada
|
$67,024
|
$312,585
|
366.4%
|
|
Source: Canadian Real Estate Association (CREA), RE/MAX
|
|||
For more information:
Elaine Langhout
RE/MAX of Western Canada
250.860.3628
Eva Blay/Charlene McAdam
Point Blank Communications
416.781.3911
Source: http://www.remax-western.ca/news/canadian-housing-markets-buck-recession-and-trend-upwards-says-remax
Follow Us!