New government incentives help but market fundamentals more important,Canadians say.
TORONTO, May 26 /CNW/ - Canadians who are considering purchasing theirfirst home are primarily motivated by lower home prices and very low interestrates, but some require confidence in the economy and their employmentprospects before they will enter the market, according to a report releasedtoday by Royal LePage Real Estate Services. Eighty-six per cent of potentialfirst-time buyers say low interest rates make them more likely to purchase ahome; 81 per cent cite lower housing prices as a motivating factor; while 76per cent cite job security and 64 per cent say a stable economy is animportant factor in their decision to buy.Potential buyers were asked to rank their top incentives for purchasing afirst property. While home prices and interest rates took the number one andtwo rankings, respectively, the third most popular incentive was theFirst-Time Home Buyers' Tax Credit. The recently introduced Home RenovationTax Credit for 2009 was cited by 42 per cent of potential first-time buyers aseither 'very likely' or 'somewhat likely' to impact their purchasing decision.
"When first time buyers stepped out of the market in the fourth quarterof 2008, at the height of the global recession, their absence was profoundlyfelt. Without significant volumes of entry-level homes trading hands, theentire market limped through the winter months. First time buyers are back inforce this spring, and with them the beginnings of a market recovery. Whilethese consumers appreciate government incentives such as tax credits, greaterRSP deduction limits and rebates on home renovations, it is markedly improvedaffordability that is proving to be the powerful drawing card," said PhilSoper, president and chief executive of Royal LePage Real Estate Services."Our survey demonstrates how important affordability factors such as interestrates and house prices are in stimulating demand."
Across the country, potential first-time homebuyers agreed thataffordability was their top consideration, however the survey also revealeddifferences amongst buyers in various regions of Canada. In provinces such asBritish Columbia where high housing prices have kept some buyers out of themarket in recent years, 92 per cent of potential first-time buyers are nowmotivated by low interest rates and 96 per cent say lower home prices arelikely to prompt them to buy.
In Atlantic Canada, where local economies have been resilient in the faceof a worldwide recession and housing markets remain stable, 43 per cent offirst-time buyers say they that job security is a factor in their decision tobuy, while 84 per cent of buyers in British Columbia and Alberta said jobsecurity will influence them.
Atlantic Canadians were less motivated than other Canadians by declininginterest rates, with only 72 per cent saying it will likely prompt a buyingdecision, compared to 86 per cent of Canadians overall. Buyers in Ontario andQuebec rated the Home Renovation Tax Credit as a bigger factor in their buyingdecision, compared to the Canadian average.
Mr Soper continued, "The significant response differences from region toregion show how closely the residential real estate market is tied to broadereconomic trends and consumer confidence. Buying your first home is a majorlife decision, and people are more likely to purchase a home if they feelcomfortable about the state of the economy and confident that they will have ajob to support their new mortgage obligation."
Wednesday, May 27, 2009
Friday, May 22, 2009
existing home sales rise most in 5 years
Greg Quinn, Bloomberg Published: Thursday, May 14, 2009
Canadian sales of existing homes rose the most in more than five years in April, a realtor group said, citing lower prices and a rebound in consumer confidence.Sales rose 11% from the previous month on a seasonally adjusted basis to 34,838 units, the Canadian Real Estate Association said Thursday in a statement from Ottawa.
The average price fell 3.2% from a year earlier to $306,366."Price adjustments in some markets have helped affordability," Dale Ripplinger, the group's president, said in the statement. Consumer confidence has also "risen in the housing market through the spring."The housing market sagged late last year as the country entered its first recession since 1992, and the Bank of Canada says it will be a drag on the economy this year.
Other recent reports have shown housing starts fell to the lowest since 1996 in April, while residential building permits rose 5% in March, according to Statistics Canada figures.From a year ago, existing sales declined 12%, the real estate group's report today said. The pace of year-over-year decline has slowed from November's record 42% drop.
Canadian sales of existing homes rose the most in more than five years in April, a realtor group said, citing lower prices and a rebound in consumer confidence.Sales rose 11% from the previous month on a seasonally adjusted basis to 34,838 units, the Canadian Real Estate Association said Thursday in a statement from Ottawa.
The average price fell 3.2% from a year earlier to $306,366."Price adjustments in some markets have helped affordability," Dale Ripplinger, the group's president, said in the statement. Consumer confidence has also "risen in the housing market through the spring."The housing market sagged late last year as the country entered its first recession since 1992, and the Bank of Canada says it will be a drag on the economy this year.
Other recent reports have shown housing starts fell to the lowest since 1996 in April, while residential building permits rose 5% in March, according to Statistics Canada figures.From a year ago, existing sales declined 12%, the real estate group's report today said. The pace of year-over-year decline has slowed from November's record 42% drop.
Tuesday, May 19, 2009
Renovating for resale
Renovations don't have to be expensive or extensive to offer you a good rate of return. In fact, a quick coat of paint can go a long way to boosting your selling price. Just make sure your new décor is tasteful, with shades of white and tame versions of popular colours.The kitchen and bathroom are your best bets for renovation with the highest payback. Take a look at these average rates of return for home upgrades:
Interior painting and décor - 73%
Kitchen renovation - 72%
Bathroom renovation - 68%
Exterior paint - 65%
Flooring upgrades - 62%
Window/door replacement - 57%
Main floor family room addition - 51%
Fireplace addition - 50%
Basement renovation - 49%
Furnace/heating system replacement - 48%
New lighting - 84%
As an expert on home sales trends in your neighbourhood, your Royal LePage Sales Professional can suggest which areas of your home could benefit from renovation and increase its value.
Interior painting and décor - 73%
Kitchen renovation - 72%
Bathroom renovation - 68%
Exterior paint - 65%
Flooring upgrades - 62%
Window/door replacement - 57%
Main floor family room addition - 51%
Fireplace addition - 50%
Basement renovation - 49%
Furnace/heating system replacement - 48%
New lighting - 84%
As an expert on home sales trends in your neighbourhood, your Royal LePage Sales Professional can suggest which areas of your home could benefit from renovation and increase its value.
Saturday, May 9, 2009
Good News Highlights
It is always fun to report good news. Following are highlights from various news sources. More proof that the world is not coming to and end and in fact possibly off life support.
The (US) credit crunch is therefore easing and the Loan Officer survey is confirming what the stock market is already telling you-- that the worst is likely past us. Financial Post May 7, 2009
Although North American equity markets are up more than 30% during the current rally that shows few signs of stopping, most investors continue to call the run little more than a bear market rally. But a growing number of strategists on both sides of the border are sticking their necks out and pronouncing a new bull market has officially arrived. National Post, May 7, 2009
"The rise in demand, combined with fewer new listings, has restored a better balance to the market," Scotiabank analyst Adrienne Warren wrote in a new report on Canadian real estate trends.Ms. Warren noted a healthy pickup in home sales through the first part of the year, coupled with a drop in the national new-listings-to-sales ratio to 2.2 in March from a peak of 2.7 last November as reason for cautious optimism. Financial Post, May 6, 2009
The labour market added 35,900 jobs in April, a small increase but one that puts an end to months of steep declines. And while self-employment accounted for the gain, there were signs of stability in manufacturing and construction employment – two of the sectors most hurt by the recession.Globe and Mail, May 7, 2009
While data on U.S. employment capped off the week, the week kicked off with data on pending home sales - a leading indicator for U.S. existing home sales. Pending home sales beat expectations, increasing by 3.2% in March.Conditions in the housing market remain ground zero for an economic recovery and even secondary indicators like pending home sales are watched with interest. TD " Weekly Bottom Line" May 8, 2009
The (US) credit crunch is therefore easing and the Loan Officer survey is confirming what the stock market is already telling you-- that the worst is likely past us. Financial Post May 7, 2009
Although North American equity markets are up more than 30% during the current rally that shows few signs of stopping, most investors continue to call the run little more than a bear market rally. But a growing number of strategists on both sides of the border are sticking their necks out and pronouncing a new bull market has officially arrived. National Post, May 7, 2009
"The rise in demand, combined with fewer new listings, has restored a better balance to the market," Scotiabank analyst Adrienne Warren wrote in a new report on Canadian real estate trends.Ms. Warren noted a healthy pickup in home sales through the first part of the year, coupled with a drop in the national new-listings-to-sales ratio to 2.2 in March from a peak of 2.7 last November as reason for cautious optimism. Financial Post, May 6, 2009
The labour market added 35,900 jobs in April, a small increase but one that puts an end to months of steep declines. And while self-employment accounted for the gain, there were signs of stability in manufacturing and construction employment – two of the sectors most hurt by the recession.Globe and Mail, May 7, 2009
While data on U.S. employment capped off the week, the week kicked off with data on pending home sales - a leading indicator for U.S. existing home sales. Pending home sales beat expectations, increasing by 3.2% in March.Conditions in the housing market remain ground zero for an economic recovery and even secondary indicators like pending home sales are watched with interest. TD " Weekly Bottom Line" May 8, 2009
Wednesday, May 6, 2009
Recession update
Confidence. Probably the most important measure of when and how we will get out of this recession. We know that in order for all of us to get out of this recession, The U.S, housing market and the various stock markets need to turn around.We are already seeing very encouraging signs on our local markets as were addressed in recent reports, however it is also important to understand that the good news also coming out is better than expected via US Housing data and the positive growth in the stock markets. We are not out of this soup yet but we are certainly hearing that the worst may be over.
Pending sales of previously owned homes rose for a second straight month in March, while construction spending edged higher, according to reports yesterday that suggested a moderation in the housing slump.
"On balance, it's an encouraging set of news. Pending home sales tell us, as far as the housing sector is concerned, we are getting near the bottom," said Nigel Gault, chief U. S. economist at IHS Global Insight in Lexington, Mass. Financial Post, May 5, 2009
“We continue to expect economic activity to bottom out, then to turn up later this year. Recent data suggest the recession may be loosening its firm grip on the country" Ben Bernanke, U.S. Federal Reserve Chairman, May 5, 2009
The pace at which house prices in Canada are falling is moderating and at this rate, this housing market correction (from a national perspective) will end up being a mild one—both in absolute and relative terms. In fact, the notable improvement in housing affordability is injecting some life to the mortgage market, encouraging new purchasing and refinancing activities.Consumer confidence in both countries is starting to improve, while retail sales are surprisingly on the upside. Benjamin Tal, CIBC Senior Economist, May 1, 2009
“I think there is some legs here and we can continue on the upside longer than maybe we originally expected,” Charles Marleau, portfolio manager at Palos Management Inc. in Montreal. Vancouver Sun, May 4, 2009
“The stock market continues to shake off bad news. Instead, even small hints of positive news are embraced, suggesting that the bearish pall over equities is slowly lifting,” said the research firm based in Montreal. BCA Research, Vanouver Sun, May 4, 2009
Pending sales of previously owned homes rose for a second straight month in March, while construction spending edged higher, according to reports yesterday that suggested a moderation in the housing slump.
"On balance, it's an encouraging set of news. Pending home sales tell us, as far as the housing sector is concerned, we are getting near the bottom," said Nigel Gault, chief U. S. economist at IHS Global Insight in Lexington, Mass. Financial Post, May 5, 2009
“We continue to expect economic activity to bottom out, then to turn up later this year. Recent data suggest the recession may be loosening its firm grip on the country" Ben Bernanke, U.S. Federal Reserve Chairman, May 5, 2009
The pace at which house prices in Canada are falling is moderating and at this rate, this housing market correction (from a national perspective) will end up being a mild one—both in absolute and relative terms. In fact, the notable improvement in housing affordability is injecting some life to the mortgage market, encouraging new purchasing and refinancing activities.Consumer confidence in both countries is starting to improve, while retail sales are surprisingly on the upside. Benjamin Tal, CIBC Senior Economist, May 1, 2009
“I think there is some legs here and we can continue on the upside longer than maybe we originally expected,” Charles Marleau, portfolio manager at Palos Management Inc. in Montreal. Vancouver Sun, May 4, 2009
“The stock market continues to shake off bad news. Instead, even small hints of positive news are embraced, suggesting that the bearish pall over equities is slowly lifting,” said the research firm based in Montreal. BCA Research, Vanouver Sun, May 4, 2009
Monday, May 4, 2009
More signs of a rebound in the Fraser Valley
More signs of a real estate rebound in the Fraser Valley (Surrey, BC) – May 4 2009
The Fraser Valley real estate market continued to show signs of rebalancing in April with the number of sales increasing for the third month in a row while the volume of available properties stayed constant. Benchmark prices for detached homes and condominiums also showed increases over the last three months.There were 1,293 sales processed on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) in April, reflecting a 28 per cent decrease compared to the 1,787 sales in April of last year, however, a 29 per cent increase over March sales. At the same time, the Board received 44 per cent fewer new listings compared to one year ago, 2,477 in contrast to 4,458 in April 2008, helping to stabilize the number of active listings in the Fraser Valley at 9,855.
Paul Penner, President of the Board, says current conditions have created one of the best buying opportunities in years. “REALTORS® have successfully communicated to their sellers to be more realistic with their prices, which is why we’ve seen a 29 per cent increase in sales from March to April.”Penner also attributes the increase to all-time historically low interest rates and still relatively high inventory for Fraser Valley, although it is dropping rapidly.“In April, REALTORS® received 44 per cent fewer new listings compared to a year ago and 18 per cent less than we received in March. When supply and demand start to balance out, the effect is that prices begin to firm up and that’s exactly what we’re seeing.”
Residential benchmark prices, the value of a ‘typical’ Fraser Valley detached home as determined by the MLSLink® Housing Price Index (HPI), decreased 10.4 per cent compared to April 2008. However, it has increased by 1.8 percent over the last three months. The benchmark price was $460,229 in April 2009 compared to $513,403 last year.The HPI benchmark price of Fraser Valley townhouses decreased 11.6 per cent from $333,982 in April 2008 to $295,07 in April 2009. That decrease, however, slowed to 0.1 per cent during the last three months. The benchmark price of apartments also decreased year-over-year by 11.4 per cent going from $260,037 in April of last year to $230,337 in April 2009. Similar to detached homes, the benchmark price for apartments has increased by 4.4 per cent over the last three months.
The Fraser Valley real estate market continued to show signs of rebalancing in April with the number of sales increasing for the third month in a row while the volume of available properties stayed constant. Benchmark prices for detached homes and condominiums also showed increases over the last three months.There were 1,293 sales processed on the Fraser Valley Real Estate Board’s Multiple Listing Service® (MLS®) in April, reflecting a 28 per cent decrease compared to the 1,787 sales in April of last year, however, a 29 per cent increase over March sales. At the same time, the Board received 44 per cent fewer new listings compared to one year ago, 2,477 in contrast to 4,458 in April 2008, helping to stabilize the number of active listings in the Fraser Valley at 9,855.
Paul Penner, President of the Board, says current conditions have created one of the best buying opportunities in years. “REALTORS® have successfully communicated to their sellers to be more realistic with their prices, which is why we’ve seen a 29 per cent increase in sales from March to April.”Penner also attributes the increase to all-time historically low interest rates and still relatively high inventory for Fraser Valley, although it is dropping rapidly.“In April, REALTORS® received 44 per cent fewer new listings compared to a year ago and 18 per cent less than we received in March. When supply and demand start to balance out, the effect is that prices begin to firm up and that’s exactly what we’re seeing.”
Residential benchmark prices, the value of a ‘typical’ Fraser Valley detached home as determined by the MLSLink® Housing Price Index (HPI), decreased 10.4 per cent compared to April 2008. However, it has increased by 1.8 percent over the last three months. The benchmark price was $460,229 in April 2009 compared to $513,403 last year.The HPI benchmark price of Fraser Valley townhouses decreased 11.6 per cent from $333,982 in April 2008 to $295,07 in April 2009. That decrease, however, slowed to 0.1 per cent during the last three months. The benchmark price of apartments also decreased year-over-year by 11.4 per cent going from $260,037 in April of last year to $230,337 in April 2009. Similar to detached homes, the benchmark price for apartments has increased by 4.4 per cent over the last three months.
Friday, May 1, 2009
Making an Offer
When you’re making an offer to buy a home, there are six main elements to consider:
Price---The price you offer reflects your opinion of the value of the house and is determined by the condition of the property and local market factors. You can make any offer you like. It does not have to be the same as the seller's asking price.
Deposit---The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Your Royal LePage Realtor can advise you on an appropriate amount.
Terms---Include the total price offered and the financing details. You may arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.
Conditions---Conditions are items that must be completed or fulfilled prior to an offer being concluded. These can include subject to home inspection, subject to you obtaining financing, or subject to you selling your existing property.
Inclusions and exclusions---Your offer may be contingent on certain items being either included or excluded in the sale. These might include appliances, fixtures, and decorative items, such as window coverings or mirrors.
Closing or possession date---The closing date is generally the day the title of the property is legally transferred and the transaction of funds finalized, unless otherwise specified (except in Manitoba and Quebec). In British Columbia the possession date is legally one to three days after closing.
Source Royal Lepage
Price---The price you offer reflects your opinion of the value of the house and is determined by the condition of the property and local market factors. You can make any offer you like. It does not have to be the same as the seller's asking price.
Deposit---The deposit shows your good faith and will be applied against the purchase of the home when the sale closes. Your Royal LePage Realtor can advise you on an appropriate amount.
Terms---Include the total price offered and the financing details. You may arrange your own financing or ask to assume the seller's mortgage, especially if it has an attractive interest rate.
Conditions---Conditions are items that must be completed or fulfilled prior to an offer being concluded. These can include subject to home inspection, subject to you obtaining financing, or subject to you selling your existing property.
Inclusions and exclusions---Your offer may be contingent on certain items being either included or excluded in the sale. These might include appliances, fixtures, and decorative items, such as window coverings or mirrors.
Closing or possession date---The closing date is generally the day the title of the property is legally transferred and the transaction of funds finalized, unless otherwise specified (except in Manitoba and Quebec). In British Columbia the possession date is legally one to three days after closing.
Source Royal Lepage
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