http://www.calgaryherald.com/Canadian+housing+market+withstands+recession/1796829/story.html

brought by Moishe ALexander, CFC canadian funding corp CEO

More balanced market conditions have emerged, effectively ending the stronghold that buyers had on the market over the past six to eight months.  Canada’s largest markets, Toronto and Vancouver, led the charge—with June sales among the highest in history for both local real estate boards.  Close to 11,000 properties changed hands in Toronto, up 27 per cent over one year ago, setting a new record for sales in the month of June.  The figure was just slightly off the all-time peak of 11,146 units.   Residential sales in Greater Vancouver increased 75.6 per cent over one year ago, to 4,259 units, just short of the record breaking 4,333 sales, which occurred in June 2005.  Overall, major markets began to recover in March, posting escalating sales in April, May and June.  The impetus is expected to continue throughout the remainder of 2009, with most centres now forecasting year-end sales on par or ahead of 2008 levels.

“While sales are the leading indicator, there are other clear signals that recovery is indeed underway,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada.  “Renewed consumer confidence, albeit cautious, has been key, supported by improved economic news.  In addition, we’ve seen sale price-to-list price ratios climb across the country, rising as high as 105 per cent in some communities.  Vendor incentives have also come off the table, both for resale and new housing stock.”

The recent surge in resale activity can be attributed to three key factors—pent-up demand, low interest rates, and greater affordability.  The combination—in conjunction with declining inventory levels—has created heated market conditions in hot pocket neighbourhoods, prompting a resurgence in multiple offers in June.  Average prices are holding steady or climbing, days on market are down, and inventory levels continue to tighten, especially at entry-level price points.

“The strength of the market, amid the most significant global recession in recent history once again underscores its relevance to the nation’s economic engine,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.  “Canadians believe in homeownership –a fact best illustrated by the purchasers who ventured forward in recent months and snapped up some of the best real estate deals this market has seen in years.  Those who chose to sit it out on the sidelines are now facing a market in transition, characterized by the threat of rising interest rates, low inventory levels, and upward pressure on housing values.”

Although the current pace may be unsustainable, all markers point to greater stability in the market, leading to healthier activity in the long run, with inventory levels a key variable influencing pent-up demand.

http://www.calgaryrealestate-goodrealtor.com/calgary/recovery-underway-in-key-canadian-markets-ends

reviewed by Moishe Alexander,   CFC  canadian funding corp CEO

A cod fish in the face might be more subtle!

For Ever and Ever

Robert Hogue of the Royal Bank of Canada in his latest report “Housing Trends and Affodability”, should be a heads up to those house buyers who think Vancouver real estate market in its present form, will go on forever.

Between the Scales

While telling us that which we already know, that “housing affordabiltiy greatly improved in the Q1-09 the teeth of his report lie buried between the scales.

Good News Old News

Sure we have experienced a windfall in affordability, in fact according to Hogue “in most areas of the country we have returned to or are near to long term averages” that he claims are “consistent with solid market fundamentals.”

Fish Story

This is all good news except that – though “the market ‘appears’ to be generally on the mend in Canada, the road to full recovery still has obstacles”. Locally, we’re all happy about the Vancouver real estate market being abuzz. However, it’s those silly little global crisis reminders that haunt us.

For those who have taken advantage of low interest rates and have netted a Vancouver home, congratulations!

Cod Filets

Hogue slaps us with the notion that affordability based on cheap rates is behind us. Noted, is that we got a few scales thrown at us as a warning in the early part of June when the 5 – 10 year rates increased.

Hogue’s fish filet tells us that “Further improvement depends on greater gains in family income.” Which he claims “SHOULD (emphasis mine), be supported by an improving economy in the second half of the year.”

Ok this is all good and hopeful – but here’s the jig.

Vinegar on your Fish and Chips

At the current G8 conference British prime minister Gordon Brown served up a well battered filet with dire warnings that as the title of the Globe and Mail article screams, a “Second wave of economic crisis coming.” Brown is not talking about fish and chips wrapped in news print.

Where are the Jobs

Quoting Brown, “I would say that in April we were having to deal with the problems that were caused by the failure of banks. Now we have to deal with the challenge of resuming growth in the world economy.” He adds that “we must do something to help the million[s of] unemployed across the world.”

Forgetful

What might that be? Brown’s solution – government regulation. It’s that stuff we had before that was designed to protect us from this mess and that conveniently everybody forgot about.

No Guarantees

If you’ve been around a while you know that everything governments do takes a long time – certainly longer than six months as hopeful Hogue suggests. Left we are, confused in finding balance with the idea that all is not as rosy as Hogue might have us believe. Concerned we are for Vancouver’s mountains and oceans those natural barriers that isolate us from the world, may not be as protective as hoped.

Faith

Look around. How many of your friends have lost their job? What are their prospects of replacing the former high pay scale career with another. On balance, if housing affordability as Hogue implies, is going to be a reflection of an improved economy, who are we to believe in light of Prime Minister Brown’s warning?

Out in the stormy cold Atlantic ocean, a Newfoundland cod fisherman worth his salt would tell you that – Yah gotta have faith!

http://www.yattermatters.com/real-estate/vancouvers-fish-story/

reviewed by Moishe Alexander, canadian funding corp CEO

Steve Arnold

The Hamilton Spectator

(Jul 8, 2009)A new report shows house prices rising across Hamilton in the second quarter of this year.

The study by real estate giant Royal LePage shows rising prices across the city’s neighbourhoods — with only a tiny drop in one area. Hamilton’s central area led the increases with a rise in values of almost 36 per cent.

Joe Ferrante, broker of record at Royal LePage State Realty, attributed the bounce in prices to buyers finally deciding to take advantage of low-interest-rate mortgages.

“People are recognizing that there are great values out there,” he said. “I still read the papers and read about deficits and layoffs so I’m not sure we can call what happened in June a recovery, but it’s still nice to see.”

Royal LePage president Phil Soper said several forces are helping the real estate market recover — the business usually picks up in the second quarter of the year and the 2009 figures are being compared to an especially bad 2008.

“We saw a very sharp drop in prices through the winter, but the recovery was equally impressive starting in March,” he said.

The study measures changes in the price of both a standard two- storey house and a detached bungalow in Hamilton’s Mountain, East, West and Centre areas. Changes are shown for the April-June quarter over the January-March first quarter and over the same quarter last year.

It shows the average price of a detached bungalow on the Mountain was $212,191 during the April-June period, up 2.3 per cent from the same quarter last year. During the first quarter of this year, the same class sold for an average $209,006.

A west end bungalow averaged $245,900 during the second quarter, up 4 per cent from the same period last year. In the first quarter, that property type sold for $229,706. In the east end, a bungalow averaged $167,885, up 0.5 per cent from last year and also rising sharply from $155,560 in the first quarter.

The centre of Hamilton was the big winner, showing an average price of $153,932 during the second quarter, soaring almost 36 per cent from both last year and the $113,150 average reported in the first quarter.

Soper said spikes like that usually result from contractors bidding up the price of the land under houses they want to demolish and replace, or consumers bidding for houses they plan to extensively renovate.

The story for standard two-storey houses across the four regions is largely the same — a house in that class on the Mountain averaged $304,484 during the second quarter, down 0.1 per cent from the same period last year. This segment was up sharply from the $277,525 average reported in the first quarter.

Standard houses in the west end averaged $279,141 during the second quarter, up 4 per cent from the same period last year, also rising from $229,706 in the first quarter of this year. In the centre area, the standard house averaged $154,896. That’s up 9.2 per cent from the same quarter last year and also up from the $135,743 average reported in the first three months of this year.

In the east end, this class averaged $260,711, a 7.2 per cent increase from the same period last year and also up from the $227,111 average in the first quarter.

http://www.beginnerrealestatewealth.com/6723/corrected-royal-lepage-sees-stable-canada-home-prices-sales-reuters/

reviewed by Moishe Alexander, CFC CEO

“Given the grim shape that Canada’s real estate market was in this past winter, the turnaround we have witnessed in the second quarter is really quite remarkable.  We believe this improvement represents a sustainable change across the country. While seasonally weaker conditions are to be expected in the fall, the plucky Canadian real estate market is stabilizing and a healthy level of activity is forecast for the second half of 2009,” said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services.

During the second quarter, average house prices across most Canadian markets began to appreciate, recovering from the lows experienced during the winter months. Average national prices remain slightly behind those posted during the same period in 2008. Of the housing types surveyed, the price of detached bungalows declined to $327,964 (-3.5 per cent), two storey property prices decreased to $392,378 (-3.7 per cent), and standard condominiums price points fell slightly to $237,112 (-3.8 per cent), year-over-year.

Soper observed, “With our industry’s busiest quarter behind us, we feel comfortable revising our 2009 forecast to the positive. When the anticipated market decline struck last winter, it was with greater speed and intensity than predicted, but the strength of the rebound was equally surprising.  If general economic conditions continue to improve, as we expect they will, 2009 will be characterized as a period of moderate housing market correction after several years of above-average price growth.”

The 2009 national average house price is forecast to decline marginally by 2.0 percent, to $297,500 by end of year and unit sales are projected to fall slightly by 1.0 percent to 430,000.

“Improved affordability, driven by flat or lower home prices and inexpensive mortgage financing, has been the principle catalyst in this recovery.  Pent up demand is also a factor in the lift we see in the second quarter numbers.  For six months straddling the year’s beginning, buyers stayed away from the market in an understandable, emotional reaction to very unsettled global economic conditions.  Canadians appear to be stepping beyond these fears and are once again moving onto and up the home ownership ladder,” stated Soper.

In early 2009, the precipitous drop in unit sales remains the most dramatic indicator of the recession’s impact on Canada’s real estate market.  With spring, consumers appeared ready to believe the worst was behind them and returned to the market in force, driving increased activity across each housing type.  Couple this with historically low interest rates and leveling unemployment, Canada’s residential real estate market got back on track during the quarter.

Undergoing an inevitable cyclical correction, price adjustments can be seen with marked variances across Canada’s provinces.  As expected, British Columbia and Alberta posted the most significant price modifications, as home values in those markets retreated in the wake of several mid-decade years of unsustainable price inflation, and have now evolved to a more balanced state.   Prices appear to have stabilized and it is expected that these regions will continue to see improvements into 2010.  In particular, the impact of lower home prices has improved affordability to the point that people are buying homes again on the West Coast, where sales activity has increased substantially.

Alternatively in Atlantic Canada, homes continue to appreciate due to strong local economies, which have helped to shelter the region somewhat from the turbulence witnessed in other provinces. As well, the region’s generally moderate home prices have helped keep demand strong.   Newfoundland, in particular, stands out as a region that continues to see significant home price appreciation, as supply cannot keep up with the demand driven by vibrant and growing industries such as those in the province’s oil and gas sector.

Meanwhile, home prices in Toronto declined slightly in the second quarter, reflecting the national average trend.  In the early spring, it was first-time buyers who triggered the increased activity levels, now those looking to move up are also active in the market. Similar to the situation in other large cities in central Canada, the most desirable neighbourhoods experienced supply shortages, which put upward pressure on prices.

“Looking ahead to the second half of 2009, year-over-year price comparisons will likely appear increasingly more favourable. It is important to remember that the baseline for the latter half of 2008 was unusually low, particularly in the fourth quarter when the full impact of the global financial crisis was felt. Our expectation is that most Canadian regions will experience stable housing prices through into the spring of 2010,” concluded Soper.

REGIONAL MARKET SUMMARIES

Halifax
In Halifax, a stable economy has contributed to a healthy real estate market where average house prices increased modestly despite a slight dip in sales activity.   The market is beginning to pick up following a slow first quarter.  Pent up demand will see a return to a more active market in the last half of the 2009 with the anticipation of a slight boost in sales activity and average house prices growing at a leisurely pace.

Montreal
The housing market in Montreal experienced a solid second quarter, with average house prices for most property types expected to increase for the remainder of 2009.  Higher inventory levels resulted in balanced market conditions seeing the number of new listings equal to the number of sales.  Low interest and unemployment rates will help maintain the strength of the real estate market through to the end of the year.

Ottawa
Ottawa continues to remain a steady market for residential real estate, with sales activity in the second quarter coming out strong from a slow first quarter.  Ranked number two among Canada’s large cities for affordable real estate and coupled with low interest rates, all types of buyers were drawn to the market.  House prices are expected to remain stable throughout the remainder of year with numbers slightly higher than anticipated.

Toronto
In Toronto, the real estate market witnessed significant second quarter gains.  The return of consumer confidence and an upswing in spring market activity brought house prices and unit sales down as buyers emerged to take advantage of affordable properties and low lending rates.
As the market begins its transition from a buyer’s market to a balanced market, with indications of a seller’s market arising, it’s anticipated that the market will stabilize by the end of year.

Winnipeg
Winnipeg’s real estate market has remained relatively resilient in the second quarter with average house prices in key housing segments increasing from the first quarter of 2009.  Real estate in Winnipeg is modestly priced when compared to other cities in Canada, creating ideal conditions for buyers in the province.  Looking ahead, average house prices are anticipated to stabilize for the remainder of the year.

Regina
Regina’s real estate market started on the road to recovery in the second quarter of 2009 and is expected to further improve through the remainder of the year.  An increase in unit sales helped diminish the city’s high inventory levels as buyers are beginning to initiate deals.   Recovering manufacturing and resource sectors, new construction activity in Regina, and low interest rates have also helped to improve buyer confidence.

Calgary
With the economic downturn and the oil and gas industry struggling, the housing market in Calgary has been on the decline since 2008, after many years of price inflation at the beginning of the decade.  Quarter one of 2009 revealed some signs of price increases and stabilization in certain areas in Calgary, but the second quarter reveals fluctuations in the market. These price fluctuations are occurring across Calgary in all housing types with the market forecast predicting price reductions for the remainder of 2009.

Edmonton
Housing market conditions in Edmonton were characterized by lower inventory levels and moderate house price increases.  Buyer demand was strong during the second quarter as most buyers felt a sense of urgency to capitalize on the recent market conditions.  This has led to a slight tightening in Edmonton’s housing market with appreciation in average house prices expected for the last half of 2009.

Vancouver
Vancouver’s real estate market stabilized in the second quarter of 2009 following a price correction that started last fall moving towards a balance between supply and demand. Properties priced at, or below, market value are generating multiple offers from buyers. Average house prices throughout the last half of the year are expected to inch upwards, but increases will likely be in the low single digits.

Royal LePage’s quarterly House Price Survey shows the annual change of prices for key housing segments in select national markets. Click here to view the chart (.PDF).

The Royal LePage Survey of Canadian House Prices is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast.  This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country.  A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca.  Current figures will be updated following the complete tabulation of the data for the second quarter. A printable version of the second quarter 2009 survey will be available online on August 7, 2009.

Housing values in the Royal LePage Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts.  Historical data is available for some areas back to the early 1970s.

http://www.muchmormagazine.com/2009/07/canadian-housing-market-sees-bounce-back-from-awful-winter/

reviewed by Moishe Alexander, CFC CEO

We’ve seen several articles over the last week or so that point to positive developments in the Palm Springs area housing market. Here’s a summary of what we’re experiencing. We’ve also included a link (found on our Facebook business page, “Palm Springs California Real Estate: Love of the Desert”) to a Desert Sun article that was quite comprehensive and well done.

Median prices for single-family homes in California have risen for the third straight month, reaching $267,570, up 4 percent from April, according to a report from the California Association of REALTORS®. This despite median prices falling 30.4% (sales increased 35.2%) compared to the same time a year ago for California statewide.

Locally, although median price fell 46.1% ( sales rose by 38.2% from a year ago), the median price is up slightly for the month of May ‘09 over April ‘09, confirming the upward trend. The inventory declined from the prior month for the fourth straight, as year over year sales remain brisk. The inventory of homes continues to drop, falling to a 4.2-month supply in May, compared to 8.7 month supply in May 2008.

California’s real estate market always has been seen as a leading indicator for the rest of the country. What is happening in California bodes well for the rest of the nation, observers say.

We are beginning to see signs of a price stabilization and even a small upward tick as inventory continues to trend downward.

“With affordability for first-time home-buyers at a record high, sales of existing single-family homes continued to remain above the 500,000 level for the ninth consecutive month,” said James Liptak, president of the California Association of Realtors.

“Buyers are beginning to realize that the combination of favorable home prices, historically low mortgage rates and first-time home buyer credits may not align again for many years.”

Greg Berkemer, executive vice president of the California Desert Association of Realtors, said, “Certainly, the housing market is affected by what goes on in the economy,” he said. “But in the housing sector alone, the last three to four months have been encouraging: We’re starting to see some price stabilization.”

That is the result of four months of slightly declining inventory, historically low interest rates, tax credits and price points, Berkemer said.

Unsold inventory tracked by more than 90 local Realtor associations statewide also fell to 4.2 months in May, the report noted, compared with the 8.7 month it would have taken to deplete the supply of homes on the market in May 2008.

“Inventory levels are well below the long-run average of seven months, which may account for the increase in median price,” said Leslie Appleton-Young, the association’s chief economist.

Capitalizing on these encouraging developments, we are also seeing the return of the Canadians, who are snapping up property in the United States. The Canadian “Loonie” is at par with the U.S. dollar for the first time since 1976-an exchange rate that makes homes and condos in the U.S. look like a real deal.

Canadian investment in U.S. real estate more than doubled in one year, from 11 percent in 2007 to 23.5 percent in 2008, making Canada the largest foreign real estate investor in the U.S., according to the National Association of REALTORS®.

Mark Dziedzic, a former financial planner from Toronto, currently living in Arizona, says, “When the Loonie hit a $1.10, it created a real buzz for Canadians, not only those looking to buy second homes, but we’re also seeing them buying purely from an investment standpoint.”

Need More Incentive to Buy?

Use Tax Credit for Downpayment

As we discussed in our last post, the tax credit can be used as additional down payment Qualified, first-time home buyers using a Federal Housing Administration (FHA)-insured mortgage now can apply the $8,000 federal tax credit toward their down payments, the Dept. of Housing and Urban Development (HUD) announced today. Currently, borrowers applying for an FHA-insured mortgage are required to issue minimum down payments of 3.5 percent. Previously, FHA-approved lenders were not allowed to monetizethe tax credit as part of the 3.5 percent; however, under the new guidelines announced this afternoon, borrowers now can use the tax credit as additional down payment, or for other closing costs. For more information, please visit: www.hud.gov and www.car.org.

C.A.R. launches Mortgage Protection Program

To help provide first-time home buyers with peace of mind when purchasing a home, the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) Housing Affordability Fund is offering a new mortgage protection program to first-time home buyers. Through the C.A.R. Housing Affordability Fund’s Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.

This program can provide an important safety net for first time buyers. But what about everyone else who fear sudden unemployment? Contact us to learn about other possibilities.

 Sources: Daily Real Estate News: The Wall Street Journal, and California Association of Real Estate and The Desert Sun

http://lovepalmspringshomes.com/?p=316

reviewed by Moishe Alexander

During these first days of summer, as economists are telling us that the worst of the recession may be over, Canadians are wondering how the values of their largest financial assets – their homes – are holding up.

Media reports of real estate statistics have left many Canadian homeowners rightfully confused. The problem is that these statistics are usually based on averages of city, provincial and national markets. Such averages are pretty much irrelevant to what’s really happening in specific neighbourhoods.

Our analysis suggests that Canadian homeowners should avoid relying on city, provincial or national averages to value their homes. Instead, sellers should monitor selling prices of similar homes in their own neighbourhoods. Buyers should monitor selling prices of typical homes in the neighbourhoods where they want to live.

A cautionary tale

A number of authoritative real estate organizations issue monthly home price surveys from which price averages are extracted and extensively reported in the media. Often these organizations caution that average prices do not reflect actual prices in neighbourhoods with specific geographies and housing types, but these cautions are largely overlooked.

Here are examples that illustrate some limitations of averages.

The Toronto Real Estate Board reports that the average home price in May 2009 was $395,609 for all transactions (single and detached homes, condo apartments and condo townhouses) in the Greater Toronto Area (GTA). The GTA is the country’s most populous urban concentration bounded by Lake Ontario on the south, Lake Simcoe on the north, Burlington on the west, and Newcastle on the east.

This average price has little relevance to prices in the specific neighbourhoods and communities in the GTA, where prices for single detached homes ranged from $1.53 million in the Toronto neighbourhood between St. Clair Avenue and Bloor Street east of Bayview Avenue; to $709,000 in a rural neighbourhood east of Newmarket; to $255,000 in Oshawa.

Average home prices

Averages themselves are largely misleading.

Suppose that in Year 1 five homes sold for $200,000, $220,000, $260,000, $290,000 and $500,000 (average $294,000), but in Year 2 only the first four homes sold (average $242,000). Statistically, this would mean that the average price of homes sold in this neighbourhood in Year 2 fell by $52,000, or 18%, from Year 1, even though all houses that were actually sold fetched identical prices to the previous year. Homeowners in this neighbourhood who didn’t carefully analyze the data would think their home values had fallen dramatically over the year, when, in fact, values of typical homes in the neighbourhood were stable.

Getting an accurate value of your home

So, the question remains: How does a Canadian homeowner determine the value of his or her existing home? Or how does a buyer determine the value of a prospective purchase?

The fact is, the Canadian housing market is made up of thousands of local housing markets that are affected by national, regional and local issues.

Local issues are many and varied. Prices of homes vary with proximity to rapid transit, shopping, parks and schools. Mountain or lakeside vistas are preferred over powerline panoramas or flight paths. Prices of homes in neighbourhoods a stone’s throw apart will vary with age, size and type of home. Homes at the base of a hill are more affordable than view homes at the top.

The most relevant housing market is the one that is closest to where you live today or want to live tomorrow. Neighbourhood surveys are more useful than city surveys, city surveys better than provincial and so on.

Most relevant are surveys of recent selling prices of similar homes on the same street or in the same neighbourhoods.

That said, it is difficult for homeowners to do their own surveys because listing prices – not selling prices – are available to the general public on the local MLS. The best course is to ask a realtor of your choice to show you statistics of selling prices of homes similar to yours in your neighbourhood. You will incur no obligation and, depending on your evaluation of the statistics you are shown, you will have a head start on your search for a realtor should you decide to sell your home.

Summary

The objective of this White Paper is to help homeowners understand the relationship between widely-reported real estate statistics and the value of their homes. We recommend that homeowners carefully scrutinize home price surveys from a variety of real estate organizations and economists. We hope this White Paper helps homeowners extract information from those surveys that is most relevant to them.

http://www.jeffreyteam.com/blog/toronto-real-estate-market/real-estate-statistics-101/

reviewed by Moishe Alexander, CFC CEO

The buzz from the Twittersphere tells the story:
YouthJuiceBC: The real estate market is rising. My listing just went into multiple 5 days on the market and way above list price!!!!
AderaHome: May 2009 Vancouver Real Estate Stats: GOOD times ahead
westcoasthomes: Real Estate market in Vancouver is becoming Hot again. Homes are selling fast and in some communties the M word–Multiple Offers!!!!

Undoubtedly, over-exuberant realtors catching their breath after months of hard slogging are adding to the frenzy with some strategic propaganda. But there are some other big reasons why people in Vancouver are buying houses, or closet-sized condos, once again:

5 Reasons for the Vancouver Real Estate Land Rush of 2009
1. The Olympics are coming. Nuff said.
2. Historically Low Cost of Borrowing Money for a Mortgage. They aren’t going to get any lower. Actually, they just went back up. Savvy buyers may have been able to pressure brokers to lock in the best rates for a little while longer, but those agreements won’t last long.
3. It’s Just That Time of Year. As it was explained to me, May and June just happen to be stronger months for real estate sales year after year. Nice weather is getting the people outdoors, where they can notice those open house signs.
4. A Variation on the Duddy Kravitz syndrome. If a man without land is nothing, then a man with land in Kitsilano is really something else.
5. Sustainability and Livability. Vancouver’s unique geography, eco-minded culture and a fortuitous foundation of good urban planning has made this city into one of the most livable metropolises in the world. Really. We’re not exaggerating, rest of Canada. It’s just that nice over here.

In case you were wondering about the condo I’ve put on the market, you can see the details and the pretty pictures in my real estate listing.
view

OTTAWA – June 15th, 2009 – National resale housing market activity returned to pre-recession levels in May 2009. The rebound in activity is being led by an increase in transactions in some of the most expensive markets in the country, which is skewing the national average price upward. According to statistics released by The Canadian Real Estate Association (CREA), actual (not seasonally adjusted) home sales via the Multiple Listing Service® (MLS®) of Canadian real estate boards totaled 49,521 units in May 2009. This is less than one per cent below activity in the same month one year ago. Year-over-year declines have been shrinking since the beginning of the year.
The seasonal increase in activity continues to be stronger than normal. As a result, seasonally adjusted home sales rose eight per cent to 37,649 units in May compared to April. This marks the fourth consecutive monthly increase in seasonally adjusted activity. Seasonally adjusted activity in May was 43 per cent above where it stood in January 2009.
Seasonally adjusted sales were up on a monthly basis in about 70 per cent of local markets. Monthly activity gains in Toronto (nine per cent), Calgary (25 per cent), Montreal (10 per cent), Vancouver (eight per cent), and Edmonton (12 per cent) contributed most to the overall increase in monthly activity.
The national MLS® residential average sale price in May 2009 reached the highest monthly level on record. At $319,757, it was up fourth tenths of a percentage point from the previous record set in May 2008. Over the past four months, the national MLS® residential average price has recovered 16.4 per cent from the low in January. The average price for MLS® home sales climbed to new heights nationally, and in Saskatchewan, Ontario, Quebec, New Brunswick, and Nova Scotia. New records were posted in only 15 per cent of local markets in May, none of which are among the most active or expensive. The strong rebound in sales activity, not price, in Canada’s most expensive markets is driving up average prices nationally and in some provinces, just as a sharp decline in activity in these markets pushed average prices lower in late 2008.
The supply of homes coming onto the MLS® market continued to decelerate in May. Seasonally adjusted MLS® residential new listings edged lower by eight tenths of a percentage point to 65,070 units, the lowest level since December 2005. Seasonally adjusted new residential listings in May were 19 per cent below the peak reached one year ago.
With the number of sales rising strongly and new listings trending downward, the balance between supply and demand is firming up in British Columbia, Alberta, Saskatchewan, Ontario, and Quebec. This resulted in national sales activity as a percentage of new listings reaching the highest point since December 2007. Residential dollar volume for MLS® sales climbed 10 per cent from the previous month to reach $11.4 billion in May. This is more than 50 per cent above the low of $7.5 billion reported last January.
“Sales activity is now closer to the pre-recession peak than it is to the recent low point reached last January,” says Regina Broker Dale Ripplinger, President of The Canadian Real Estate Association. “Strengthening consumer confidence, low interest rates, and improved affordability are drawing buyers to the housing market across Canada,” he added.
“Fueled by a string of monthly increases in activity, the number of transactions in May reached the highest point since July 2008,” said CREA Chief Economist Gregory Klump. “Inventory levels are still high in many markets, but fewer new listings and rising sales activity suggests that the selection of homes available for sale may shrink as the year progresses. The supply of homes up for sale needs to be drawn down further before average price increases become more widespread among local markets.”
PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month. The Canadian Real Estate Association has previously released these separately.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.
MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 96,000 REALTORS® working through more than 100 real estate Boards and Associations. Further information can be found at www.crea.ca.
Click here for full report

http://torontoism.com/2009/06/15/national-resale-housing-continues-to-rise-in-may/

The value of all residential transactions recorded through the MLS system in Nova Scotia totaled $130.5 million in March 2009, a 16 per cent decrease from year-ago levels. The total value of all MLS sales activity in Nova Scotia was $137.4 million, a year-over-year decline of 17 per cent from March 2008.

“Despite the downturn, a number of buyers and sellers are taking advantage of the increased affordability the current market has to offer,” says Linda Smardon, president of the Nova Scotia Association. “Activity during the rest of the spring market will depend heavily on what happens with interest rates and the consumer response to the federal budget incentive programs,” she adds.

The average price for MLS home sales in Nova Scotia was down slightly in March 2009 compared to levels one year earlier. Edging down one per cent from March 2008, the provincial average price for home sales was $188,651. The national MLS residential average price in March 2009, by comparison, was down by eight per cent year-over-year. The MLS average price rose by 1.6 per cent in Halifax-Dartmouth to $229,548. The small decrease in provincial average price was in part the result of fewer sales in this region, where homes are priced higher than in other markets across the province. Sales activity was down by 19 per cent year-over-year in Halifax-Dartmouth, compared to the 15 per cent provincial decline. This resulted in fewer transactions at the higher end of the price spectrum being included in the calculation of the provincial average price.

The number of active listings continues to increase in Nova Scotia, but year-over-year gains are slowing as demand begins to recover and new listings trend lower.

“Home sellers are adjusting to the changes in the market and are working with their realtor to price homes realistically, and when that happens properties will sell. We anticipate a fairly strong April market,” Smardon says.

http://www.jeffreyteam.com/blog/other-real-estate/resale-housing-market-strong/

reviewed by Moishe Alexander, CFC CEO