Canada's housing market has proven to be an unexpected bright spot during the recession. It seems for many potential home-buyers that it was global-wide uncertainty rather than personal financial circumstances that was holding them back from making a home purchase at the end of 2008.
At that time, reading the headlines, listening to the radio or watching television, one might have the idea that it was no so easy to determine what was happening in the real estate world. Even if you figured it out, conditions were changing rapidly, just like the weather. That is why talking with your realtor who keeps up with the local real estate market is important. It can help you make sense of what is happening and why. Unlike the media, we do no stereotype the market because not only are there geographic differences that define real estate markets but also other varialbles come into play.
Sometimes high-end homes sit on the market while more affordable properties sell before the sign goes on the lawn. A month later, it can be the other way around. You will also see differences between the new home and resale home market, especially as Halton Region continues to develop rapidly. We also don't count on a national outlook to explain local market trends. We fine tune our outlook to neighbourhoods. A neighbourhood on one side of town could be appreciatig month by month, while homeowners on the other side cannot see as much movement. Just like the weather - have you ever seen it rain in one part of town and another not get a drop?
Real estate industry analysts are predicting a very active first six months in 2010. If you are planning a move in 2010, then you should be talking to me no later than January to develop your buying or selling strategy and
discuss mortgage rate predictions. I look forward to speaking with you.
Thursday, December 17, 2009
Tuesday, November 24, 2009
First-time Homebuyers
Trendy townhome for sale in mature, quiet Falgarwood neighbourhood. Asking price $224,900.
530 Falgarwood Drive, Unit 22 - Open House Saturday, November 28th - 2-4 p.m. I look forward to seeing you there.
Renovation Tax Credit Window Coming to an End
Ottawa's home renovation tax credit for a maximum of $1,350 is scheduled to end February 1, 2010.
Homeowners can spend up to $10,000 on qualifying items or work to earn the maximum renovation credit until that time.
Qualifying expenditures include repairs, alterations and preventative maintenance for a home owned by the applicant. Labour, materials and equipment rental costs are all covered under the tax credit.
Homeowners may want to take advantage of this tax credit ahead of the expected increase in costs which may occur in July, 2010, when Ontario adopts the harmonized sales tax.
Homeowners can spend up to $10,000 on qualifying items or work to earn the maximum renovation credit until that time.
Qualifying expenditures include repairs, alterations and preventative maintenance for a home owned by the applicant. Labour, materials and equipment rental costs are all covered under the tax credit.
Homeowners may want to take advantage of this tax credit ahead of the expected increase in costs which may occur in July, 2010, when Ontario adopts the harmonized sales tax.
Monday, November 2, 2009
Oakville/Burlington Real Estate Market is Doing Just Fine
The real estate market has certainly out-performed the weather, sweeping aside the dark economic clouds despite a forecast of doom and gloom in the media at the beginning of the year.
Buyers and sellers have focused on neigbhourhoods and chosen to ignore negative national and provincial headlines on market conditions.
The simple fact is that the only meaningful real estate marketplace is the one in which you live, so it is important to look closely at your own community real estate activity. The road to good real estate buying and selling decisions is by a market analysis provided by your neighbourhood realtor.
Just like our weather, there will always been some hot real estate markets and others that will be cold, as we have seen across the GTA this year. Pricing trends that have emerged in 2009 are likely to continue for the balance of this year, if, as predicted, interest rates will remain low. While interest rates remain low, the simple fact is that buyers who want to buy will buy and sellers who want to sell will sell.
According to the sales data for September, the average market time for homes that have sold was 30 days. Most activity in Oakville in recent months has occurred in the $300,000 to $600,000 price range.
The number of homes available for sale is down so if you are contemplating a move this is an excellent time to list your home.
Buyers and sellers have focused on neigbhourhoods and chosen to ignore negative national and provincial headlines on market conditions.
The simple fact is that the only meaningful real estate marketplace is the one in which you live, so it is important to look closely at your own community real estate activity. The road to good real estate buying and selling decisions is by a market analysis provided by your neighbourhood realtor.
Just like our weather, there will always been some hot real estate markets and others that will be cold, as we have seen across the GTA this year. Pricing trends that have emerged in 2009 are likely to continue for the balance of this year, if, as predicted, interest rates will remain low. While interest rates remain low, the simple fact is that buyers who want to buy will buy and sellers who want to sell will sell.
According to the sales data for September, the average market time for homes that have sold was 30 days. Most activity in Oakville in recent months has occurred in the $300,000 to $600,000 price range.
The number of homes available for sale is down so if you are contemplating a move this is an excellent time to list your home.
Thursday, September 24, 2009
Canadian Housing Markets Buck Recession
Canadian housing markets buck recession
and trend upwards, says RE/MAX
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. Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well-underway. Percentage increases in unit 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.
Markets are heating up across the country as purchasers take 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.
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), and Regina (70.1). Significant gains have also been made over the same period in markets such as Ottawa, where levels rose from 51.4 per cent to 66.7 per cent, and Toronto, where levels rose from 57.3 to 67.6 per cent.
Public sentiment can perhaps 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.
The strength of the residential housing sector cross-country has taken many economists and housing analysts by surprise once again. 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.
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
* 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
and trend upwards, says RE/MAX
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. Low interest rates, pent-up demand, and improved affordability levels have all played a role in the recovery now well-underway. Percentage increases in unit 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.
Markets are heating up across the country as purchasers take 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.
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), and Regina (70.1). Significant gains have also been made over the same period in markets such as Ottawa, where levels rose from 51.4 per cent to 66.7 per cent, and Toronto, where levels rose from 57.3 to 67.6 per cent.
Public sentiment can perhaps 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.
The strength of the residential housing sector cross-country has taken many economists and housing analysts by surprise once again. 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.
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
* 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
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