Housing Activity Strong

Housing Activity Strong


18542525 377849f073 135x100 Housing Activity Strong

Author: Dean Terry

Housing starts rebounded in the second half of 2009, and it is expected to strengthen in 2010 according to Canada Mortgage and Housing Corporation’s (CMHC) first quarter Housing Market Outlook, Canada Edition.

In 2009, there was a total of 149,081 units, housing starts are expected to be in the range of 152,000 to 189,300 units in 2010, with a point forecast of 171,250 units.

In 2011, housing starts will be in the range of 156,400 to 205,600 units, with a point forecast of 175,150 units.

Chief Economist for CMHC, Bob Dugan noted that the existing home market has shifted from a buyer’s market, at the beginning of 2009, to a seller’s market. With the relative lack of listings for existing homes has pushed some of the demand into the new home market, which can help explain the forecast made for higher housing starts activity in 2010.

The pace of the Multiple Listings Service (MLS) sales seen in the second to fourth quarters of 2009 reflects, in the activity that was delayed in the previous two quarters.

This pace is unlikely to be sustained as pent up demand, as it has exhausted and financing costs increase with anticipated higher interest rates later in 2010.

The results of this will be that existing home sales will be in the range of 455,350 to 509,900 units in 2010, with a point forecast of 486,700 units. It is expected to lower slightly in 2011, within the range of 426,300 to 494,600 units, with a point forecast of 469,950 units.

With the balance improving between supply and demand, the average MLS price is expected to remain close to the average of the last quarter of 2009, for most of 2010, and then rise modestly in 2011.

Jeff Markewich
Broker of Record with InfoMarket Group GMAC Real Estate
www.imgrealestate.ca

Canadian Economy Due for a Major Rebound

Canadian Economy Due for a Major Rebound


2654055369 4556dd1342 135x100 Canadian Economy Due for a Major Rebound

Author: Herman H. Cheung

A new forecast from RBC Economics says that Canada’s economy is set for real Gross Domestic Product (GDP) growth of 3.1% this year and 3.9% in 2011.

RBC has noted that a peak in stimulus investment, improved credit markets and a recovery in consumer spending are pushing the increase of GDP growth.

Craig Wright, chief economist has noted that recovery has taken a solid root in Canada, which is also due to low interest rates and improved credit markets. He has also gone as far as to say that the strength in the housing market and investment by private sector should provoke additional economic growth.

With the economy in for a major rebound, we can also expect to see that the housing market improving further on.

As it stands, we are already surpassing last year’s level, however the months so far were ones we were deep into the recession. We will truly be able to see how the market will fare once we reach April, which was around the time last year when we first began to see huge improvements in the housing market.

Until then nothing is certain, however I believe that with new mortgage rules and interest rates rising in mid 2010, we might see the housing market stabilize, but no records broken anytime soon.

Rita Baxter
Broker of Record with Town and Country Realty
www.lloydminsterrealestate.ca/

RBC Poll: Home Buying Intentions Gaining Momentum

RBC Poll: Home Buying Intentions Gaining Momentum


3437430411 fc93e78f35 135x100 RBC Poll: Home Buying Intentions Gaining Momentum

Author: zarak.khan2009

A recent Royal Bank of Canada (RBC) poll showed that homebuying momentum in Canada continues to gain momentum with the portion of Canadians who are likely to purchase a home within the next two years rising to 10%.

This data is according to the 17th Annual RBC Homeownership Study; it shows that younger Canadians, aged 18-24 will be leading this year, with those to buy almost doubling to 15% from 8% in 2009.

Ipsos Reid conducted the RBC study, and it was found that 91% of Canadian homeowners believe a home is a good investment, making this the highest level in 12 years.

We also have 26% of Canadians expecting their home to be their primary source of income when they retire.

With this information, people have to be ready to see buyers not stalling any further with their purchase. If you are a buyer on the market today, you should not waste too much time when you find the house of your dreams.

As we know, there will be new mortgage rules as of April 3rd, and by the middle of the year interest rates should start increasing.

If you want to purchase your home with a low mortgage attached, now is the time to be purchasing a home, however I cannot stress this enough, that you should not over extend yourself too thin.

Tips will be provided to help you your buying process on a later date.

Glen Chapman
Broker of Record with Club “100″ GMAC Real Estate
www.club100realestate.com

Consumer Confidence in Real Estate Is Rising

Consumer Confidence in Real Estate Is Rising


With so many stats released about how the market performed last month or last year, all of this information can obscure the fact that what matters to many potential homeowners is what will happen to the market in the future. Taking the pulse of current consumer confidence can help in this task.

Building construction

Image: USACE Europe District / Flickr

RBC has released its annual Homeownership Study, and it shows that the housing market is not likely to cool off in the next few months. Ten percent of all of the people surveyed said they planned to buy a house in the next two years, compared to the seven percent the survey recorded in 2008. Younger respondents were the ones who showed the most eagerness to buy, with 15% expressing strong interest, compared to eight percent last year.

Undoubtedly, this is being driven by the increasingly stable market conditions and low interest rates. And many people think that now is the time to buy, as opposed to later: three-fifths of respondents said they think that average house prices will keep rising in 2010. This is a huge turnaround from 2009, when only a quarter thought house prices would rise.

Because of this optimistic view of house prices, and possibly because people are getting concerned about the volatility of the stock market, 91% of the survey respondents think that owning a home is a good way to invest your money, and a quarter think that their home will the main way they will pay for their retirement. This is the highest level for homeowner satisfaction that RBC has seen in 12 years.

A senior economist for RBC, Robert Hogue, says, “With the Canadian housing market showing continued vigour, it’s not surprising that Canadians feel more confident in the long-term value of owning a home.”

When they do buy a home, fixed-rate and combination fixed and variable rate mortgages are neck-in-neck in terms of popularity: fixed rate has 44%, and combination has 40% support. This supports the judgement that Canadians are optimistic about the future, but they are trying to be cautious as well, because not all of their questions are answered.

What should you take away from this survey? Essentially, that for buying and selling, now is a good time to take a leap into the market. With consumer confidence rising, there will be more people entering the market, and therefore, more opportunities to make the deal you want.

Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com

Housing Industry Has Concerns with New Federal Budget

Housing Industry Has Concerns with New Federal Budget


Although the most recent Federal budget announcements were mostly met with approval by housing industry analysts, there were concerns that some calls to make housing more affordable were not heeded by Flaherty.

Housing Market

Image: Hugh Lee / Flickr

For instance, while the budget retained the first time homebuyers tax credit and the new ceiling on the amount homebuyers can pull from their RRSPs to put into their down payment on a home, they did not extend the home reno tax credit.

Clearly, some of this is due to concerns that Canada may experience a housing bubble in the near future, and that providing any more impetus to its growth may be harmful. Flaherty felt there was no need for further stimulus because the market for homes is “healthy and stable.”

But industry groups do feel that some changes are needed to improve housing affordability. For instance, when the GST was first rolled out, it allowed new homeowners to rebate their full GST costs for any homes under $350,000. However, that was in 1991. Due to inflation, a home that cost $350,000 would be worth upwards of $550,000 today, and so the number of people that can claim this rebate is falling every year.

The Canadian Real Estate Association (CREA) is also asking for the first-time home buyers tax credit to be boosted, and that the credit be indexed to inflation so that the problem with the GST credit doesn’t happen to this credit.

These same groups are happy that the government is not putting any further regulations on the market. The chief economist of the CREA, Gregory Klump says that, “We’re satisfied that no further regulatory action needs to be taken.” He characterizes the current condition of the market – which some feel is too hot – as the activity that occurs in a period of economic recovery. He also expects it too cool later in the year when interest rates start to rise.

Although the budget did not have a lot of positive news for home buyers, perhaps no news is the best news: home buyers don’t need a new HST, for instance. And the first-time home buyers credit is one of the best ideas that the government has come out with in a while. From a real estate perspective, then, this budget was probably the best we could reasonably hope for.

Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com

Advertise

Our sponsors:


About

About:

Say hello to RealtyKitchen.com a totally unmatched blog experience for the information starved owners and potential owners of Real Estate. No matter if you’re buying, selling, financing or perhaps just renovating your home, this is a truly unique single source environment providing Canadians with current and relevant information at its highest level.


Home Turf:

Your Money:

Design:

Site tools:

Buying Tips

Mar 10, 2010 12:36 -

When purchasing a home, you can find yourself in one of the most stressful periods of your life.
To help ease the stress of purchasing a home, I have a few tips you may want to consider following.
1. Lock in Mortgage Rate
When you apply for a mortgage, you will be able to lock in the rate. This [...]

Don’t Use Your Mortgage to Top Up RRSPs

Feb 26, 2010 15:13 -

The RRSP deadline is on Monday, and so you are probably thinking about the best way to top up your contributions. With the recession ravaging finances, and the debt hangover from the holidays likely still dogging you, you might be tempted to borrow money for your RRSPs. Some people take out a line of credit [...]

The Neighbourhood is an Extention of Your Home

Feb 26, 2010 13:57 -

For so many, arriving home at the end of the day is like the calm after the storm.
That welcoming feeling is warm and comfortable, like a sunbeam focused on your very own driveway.
The last few minutes of your drive, through the familiar streets of your neighbourhood can either be the start of your relaxation or [...]

6 Things to Avoid When Posting Real Estate to Craigslist

Feb 23, 2010 18:51 -

Previously, I went through the benefits of using Craigslist for posting real estate listings, and I provided some points as to how to effectively use the service. Today, I will provide you with the six things to avoid when posting to Craigslist.

1. Don’t use misleading photos and descriptions. You might be tempted to post inaccurate [...]

Home Sales in Toronto Are Strong

Feb 22, 2010 13:01 -

The Toronto Real Estate Board (TREB) released its figures for January recently, and overall they paint a very positive picture.
Sales are up 87% from a year before, with 4,986 homes exchanging hands in January 2010. This is comparison to January 2009, when only 2,670 sales were completed.
The president of the board, Tom Lebour, said, “The [...]

The Top 5 Points to Remember when Creating a Craigslist Real Estate Listing

Feb 22, 2010 12:53 -

Craigslist for real estate? The idea may sound strange. Isn’t Craigslist the place where people give away free yoga lessons, try to sell soiled furniture or post ads for their missed romantic connections? Isn’t using a more reputable service a better idea?
First of all: yes, you should be primarily listing your home through a real [...]

Small Condos Rise in Popularity

Feb 21, 2010 14:10 -

It is not really news that condos in Canada’s downtown urban areas are often bought by young, single professionals. City councils in several cities have struggled to persuade developers to add multi-family units to their buildings. And the developers point out that families don’t want condos.
The problem with marketing condos almost exclusively to young professionals [...]

Three Suggestions for Investing in Real Estate

Mar 2, 2010 17:25 -

When market uncertainty hits, many people try to find a way to safeguard their investments. One of the most attractive ways to do this is by putting money into real estate. Real estate, after all, is more substantial than stocks and bonds – you can touch real estate, and see it. On the other hand, [...]

Don’t Use Your Mortgage to Top Up RRSPs

Feb 26, 2010 15:13 -

The RRSP deadline is on Monday, and so you are probably thinking about the best way to top up your contributions. With the recession ravaging finances, and the debt hangover from the holidays likely still dogging you, you might be tempted to borrow money for your RRSPs. Some people take out a line of credit [...]

What You Need to Know about the HST

Feb 21, 2010 14:16 -

For those people in Ontario who are thinking about buying or selling property this year, the expected arrival of the Harmonized Sales Tax (HST) on July 1, 2010 has caused some concern. How will the HST affect your real estate transactions? And are there any positive sides to this legislation?

What is it?
First, a primer: the [...]

The Optimal Down Payment Amount

Feb 21, 2010 14:04 -

When you are deciding to buy your first home, one of the questions that often comes up is: how much should I pay for my down payment?
The short answer is: as much as possible.
We’ve all seen the havoc that some of the no-down payment mortgages in the U.S. have caused. Since buyers of these mortgages [...]

Fixed Rate or Variable: Which is Better?

Feb 10, 2010 19:33 -

When it is time to renew a mortgage, you are often faced with a difficult problem: should you go for a fixed rate or variable rate mortgage?
There are benefits to both. However, historically it has been the variable rate mortgages that have the edge: in the last 30 years, variable rate mortgages have outperformed fixed [...]

The First Time Home Buyers’ Tax Credit: What You Should Know

Feb 3, 2010 14:52 -

You are likely starting to get your taxes sorted for 2009. If you bought a home for the first time in 2009, you are eligible for the First-Time Home Buyers’ Tax Credit. But before you add it to your tax returns, make sure you know all of the details about what it entails.
In 2009, the [...]

Mortgage Brokers Can Potentially Save You Money

Jan 27, 2010 20:55 -

Choosing the right mortgage can feel overwhelming. Although going to your bank might be the logical move, you don’t know if this will net you the best mortgage plan for your budget, lifestyle and prospects. And searching by yourself can give you the feeling that there is just too much to know.
That’s why mortgage brokers [...]

Thinking of DIY? Make Sure You Consider these Tips

Mar 11, 2010 16:43 -

With the recent home renovation tax credit, many people are undertaking renovations of their homes. In some cases, this is encouraging people who have never renovated their homes to take the plunge, and to take the plunge by themselves.
But sometimes taking the plunge is something new renovaters should not do by themselves. Although doing it [...]

5 Tips for Your West Coast Designed Homes

Mar 10, 2010 17:23 -

When you are thinking of redecorating your house, one look to consider is West Coast Design. West Coast interior designs are very hot right now because of their emphasis on the natural and environmentally-friendly living spaces. If you are planning on using this aesthetic as an inspiration, here are a few points to remember:
1. West [...]

Kitchen Renos on a Budget

Mar 8, 2010 17:49 -

Even in times of economic hardship, we still sometimes want to make a change to our home’s decor. In fact, redecorating a room or refinishing the basement can not only make our home look nicer, it might make us feel better about our life in general. If you are stressed about finances, you can at [...]

Part Two of the Homes and Gardens Survey

Mar 5, 2010 18:51 -

Last week, I provided an overview of Better Homes and Gardens market research. This research suggested that Americans want smaller, greener homes. Today, I will provide more detail on some of the other research results.
Home Offices
Last week we noted that respondents were looking for more organized space. A big component of this is that respondents [...]

More Tips on Eco-Flooring for Your House

Mar 4, 2010 16:12 -

Last week I provided some initial tips on how to make your new floor ecologically sensitive. In this article, I am going to give you a few more options.

What not to wear (on your floor)
Choosing an ecologically friendly floor doesn’t just mean choosing the right materials, it also means avoiding the wrong materials. And it [...]

Hot New Trend Alert: Urban Decay

Mar 3, 2010 18:12 -

We’ve discussed it several times before on this site: the hot new trend in home decorating is not new – it’s using recycled, freecycled and reclaimed items in your home decor. One of the reasons this trend started was because of the recession. With everyone cutting back, going glam seems insensitive and tacky. Even with [...]

Four Tips to Rid Your House of Stuff

Mar 1, 2010 15:48 -

You probably feel it: that horrible sinking feeling when you look in your closets and basements and realize that you have too much stuff.
The good news is that you aren’t alone. Statistics Canada says that every Canadian has nearly three square feet of stuff in storage. Americans are even worse – they have double that [...]