Premier Dalton McGuinty's plan to harmonize sales taxes threatens 21,200 construction jobs and will cost buyers of new homes at least $800 million, a housing industry analysis warns.
The melding of the 8 per cent provincial sales tax with the 5 per cent GST on July 1, 2010, will be especially onerous to buyers in Greater Toronto due to higher house prices, says the report commissioned by the Building Industry and Land Development Association (BILD).
GTA purchasers will pay $575 million of the $800 million, wrote Altus Group's Frank Clayton, who prepared the 28-page report, the first detailed examination of the new tax's impact since it was announced in the March 26 budget.
Prior to the budget, BILD had estimated it could cost Ontario homebuyers $2. 4 billion if the taxes were harmonized. That was before Finance Minister Dwight Duncan disclosed that residences costing less than $400,000 would effectively be exempt from the HST and there would be partial rebates for homes less than $500,000.
But new houses that cost more than $500,000 would be subject to the harmonized tax.
"The impacts will disproportionately hit new housing in the Greater Toronto Area because of its higher price level and middle-income households," wrote Clayton, whose study will be released today.
"New homes over $400,000 are not exclusively owned by the very wealthy," he noted, adding "a significant number of (such) households are classified as 'middle class.'"
About one third - 36 per cent - of all new homes sold in the GTA cost more than $400,000 and even a 10 per cent to 15 per cent reduction in demand due to the new tax would mean 7,400 to 11,100 fewer units being built.
That translates into 14,100 to 21,200 jobs in construction and related industries and $720 million to $1.1 billion in lost wages.
Interim Progressive Conservative leader Bob Runciman has tabled a motion urging McGuinty "to acknowledge that, due to the current economic downturn, this is the wrong time to move forward with his ill-advised plan to yet again increase taxes on all people of this province."
In addition to housing, the blended 13 per cent tax will boost the price of hundreds of items, such as gasoline, heating fuel, fast food, newspapers, magazines, taxi fares and dry cleaning, among other things, that are now only subject to 5 per cent GST.
Even though Liberal MPPs and cabinet ministers privately share Runciman's concern about the change, the premier insists it is full-steam ahead with the reform. "We need to do this to strengthen our economy," he told reporters.
The harmonized tax will hasten people's decisions to buy homes, said David Poon, a real estate agent with Cathedraltown, a housing development in Markham. "There's still a lot of time but I'm already seeing prospective buyers scrambling to find homes," he said yesterday.
"A lot of people want to beat the deadline. It's not making (buyers) happy. If my house costs about $500,000, I'll have to pay another $40,000 after July 1," said Poon. who called the harmonization nonsense.
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Thursday, May 27, 2010
U.S.-Style Home Price Correction Unlikely in Canada
OTTAWA - May 26, 2010 - The Canadian Real Estate Association (CREA) released a new report today indicating that home prices will stabilize, and will remain stable for some time. This means that Canadian homeowners are unlikely to experience a U.S.-style decline in the value of their homes.
“The relationship between average price and income has recently been cited as portending a U.S.-style correction in Canadian home prices,” said Gregory Klump, Chief Economist, CREA. “However, such warnings ignore the longer-term relationship between prices and income, and disregard typical Canadian housing market cycle dynamics.”
Home prices tend to rise in cycles, characterized by periods of sharp growth and periods of stability. By contrast, income generally follows an orderly upward trend over time. For home prices to keep pace with incomes, they must rise faster during housing booms to make up for periods of little or no price growth. Canadian home prices were stagnant throughout most of the 1990s, while incomes continued rising, making housing more affordable. Over the past decade, home prices have climbed sharply as mortgage interest rates declined.
Klump adds: “The Canadian housing market is now widely thought to be at, or very near, the top of a cycle, and the ratio of home prices to incomes is currently high. This ratio will revert to its long-term average as it always does as part of a normal housing market cycle. History suggests, however, that it will not do so by means of a significant correction in home prices. The more likely scenario is that home prices will stabilize, giving incomes a chance to catch up again.”
The correction in U.S. home prices has sparked fears that Canadian home prices may share a similar fate. However, according to Klump, “warnings to this effect ignore solid Canadian mortgage market trends.”
Conservative lending practices in the mortgage industry combined with prudent borrowing and accelerated payments among Canadian mortgage holders have been seen throughout the recent housing market cycle. Accelerated accumulation of home equity will provide options for the small proportion of homeowners who may face financial difficulty when their mortgage is renewed at a higher interest rate. These trends are expected to help Canada avoid a U.S.-style housing crisis.
The correction in U.S. home prices is set against a massive oversupply of homes due to distress sales, combined with a drop in housing demand due to unemployment. The unwinding of the housing boom in Canada will be more orderly, characterized by softening sales activity and stable prices.
To view the full report please visit: http://www.crea.ca/public/news_stats/pdfs/housing_report_2010.pdf
“The relationship between average price and income has recently been cited as portending a U.S.-style correction in Canadian home prices,” said Gregory Klump, Chief Economist, CREA. “However, such warnings ignore the longer-term relationship between prices and income, and disregard typical Canadian housing market cycle dynamics.”
Home prices tend to rise in cycles, characterized by periods of sharp growth and periods of stability. By contrast, income generally follows an orderly upward trend over time. For home prices to keep pace with incomes, they must rise faster during housing booms to make up for periods of little or no price growth. Canadian home prices were stagnant throughout most of the 1990s, while incomes continued rising, making housing more affordable. Over the past decade, home prices have climbed sharply as mortgage interest rates declined.
Klump adds: “The Canadian housing market is now widely thought to be at, or very near, the top of a cycle, and the ratio of home prices to incomes is currently high. This ratio will revert to its long-term average as it always does as part of a normal housing market cycle. History suggests, however, that it will not do so by means of a significant correction in home prices. The more likely scenario is that home prices will stabilize, giving incomes a chance to catch up again.”
The correction in U.S. home prices has sparked fears that Canadian home prices may share a similar fate. However, according to Klump, “warnings to this effect ignore solid Canadian mortgage market trends.”
Conservative lending practices in the mortgage industry combined with prudent borrowing and accelerated payments among Canadian mortgage holders have been seen throughout the recent housing market cycle. Accelerated accumulation of home equity will provide options for the small proportion of homeowners who may face financial difficulty when their mortgage is renewed at a higher interest rate. These trends are expected to help Canada avoid a U.S.-style housing crisis.
The correction in U.S. home prices is set against a massive oversupply of homes due to distress sales, combined with a drop in housing demand due to unemployment. The unwinding of the housing boom in Canada will be more orderly, characterized by softening sales activity and stable prices.
To view the full report please visit: http://www.crea.ca/public/news_stats/pdfs/housing_report_2010.pdf
Canada’s hot resale housing market starting to cool
OTTAWA – May 17, 2010) Home sales activity in Canada came up short of the record for the month of April and new listings continued to climb, according to statistics released by The Canadian Real Estate Association (CREA).
Residential sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards numbered 52,042 units in April 2010. This is less than one per cent short of the record for national sales activity during the month of April, which was set in 2007. Compared to April 2009, national activity was up 20 per cent.
Seasonally adjusted national home sales activity slipped 2.6 per cent from the previous month, and now stands 6.8 per cent below the peak reached in December 2009. More than half of the decline in activity over the first four months of 2010 resulted from fewer sales in British Columbia, while activity in Ontario and Quebec remains at or near record levels.
“The easing trend in national sales activity masks a rising trend in a number of major markets,” said CREA President Georges Pahud. “Real estate is local, so buyers and sellers should engage the services of a REALTOR® for knowledge about housing market trends in their market.”
Some 99,901 homes were newly listed for sale on Canadian MLS® Systems in April 2010, surpassing the previous record for the month of April set in 2008 by six-tenths of one per cent. A total of 236,397 residential properties were listed for sale on Boards’ MLS® Systems at the end of April 2010, down 1.9 per cent from levels one year earlier.
As for the national average price of homes sold via Canadian MLS® Systems, that figure rose 12.2 per cent over this time last year. This is a smaller increase compared to those recorded over the past eight months. Bucking the national trend, price gains continue to increase in a number of major markets in Alberta, Ontario and Quebec.
With last year’s string of downwardly skewed average price values having now mostly passed, and with activity in British Columbia’s lower mainland having settled down, year-over-year national average price comparisons are coming back into line with changes in the national weighted average price.
The weighted average price compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 11.3 per cent on a year-over-year basis in April 2010. Similarly, the residential average price in Canada’s major markets climbed 12.9 per cent year-over-year in April, while the weighted major market average price rose 12.1 per cent.
The actual (not seasonally adjusted) number of months of inventory stood at 4.5 months in April 2010. This is down from levels one year ago (5.6 months) and April 2008 (4.7 months), but up compared to April levels from 2004 through 2007. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
On a seasonally adjusted basis, months of inventory stood at 5.3 months in April, the highest level since last May.
“Next month will mark the passage of one year since the national average price rebounded from the recessionary trough to return to the pre-recession peak, so the rise in the national average price is expected to be more subdued next month, ” said CREA Chief Economist Gregory Klump. “The national average price could potentially be skewed higher over the next couple of months if buyers of higher priced homes in Ontario and British Columbia move their purchase decision forward to beat the introduction of the HST in July.”
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 http://www.crea.ca/public/news_stats/pdfs/media_apr10rpt.pdf
Residential sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards numbered 52,042 units in April 2010. This is less than one per cent short of the record for national sales activity during the month of April, which was set in 2007. Compared to April 2009, national activity was up 20 per cent.
Seasonally adjusted national home sales activity slipped 2.6 per cent from the previous month, and now stands 6.8 per cent below the peak reached in December 2009. More than half of the decline in activity over the first four months of 2010 resulted from fewer sales in British Columbia, while activity in Ontario and Quebec remains at or near record levels.
“The easing trend in national sales activity masks a rising trend in a number of major markets,” said CREA President Georges Pahud. “Real estate is local, so buyers and sellers should engage the services of a REALTOR® for knowledge about housing market trends in their market.”
Some 99,901 homes were newly listed for sale on Canadian MLS® Systems in April 2010, surpassing the previous record for the month of April set in 2008 by six-tenths of one per cent. A total of 236,397 residential properties were listed for sale on Boards’ MLS® Systems at the end of April 2010, down 1.9 per cent from levels one year earlier.
As for the national average price of homes sold via Canadian MLS® Systems, that figure rose 12.2 per cent over this time last year. This is a smaller increase compared to those recorded over the past eight months. Bucking the national trend, price gains continue to increase in a number of major markets in Alberta, Ontario and Quebec.
With last year’s string of downwardly skewed average price values having now mostly passed, and with activity in British Columbia’s lower mainland having settled down, year-over-year national average price comparisons are coming back into line with changes in the national weighted average price.
The weighted average price compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 11.3 per cent on a year-over-year basis in April 2010. Similarly, the residential average price in Canada’s major markets climbed 12.9 per cent year-over-year in April, while the weighted major market average price rose 12.1 per cent.
The actual (not seasonally adjusted) number of months of inventory stood at 4.5 months in April 2010. This is down from levels one year ago (5.6 months) and April 2008 (4.7 months), but up compared to April levels from 2004 through 2007. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
On a seasonally adjusted basis, months of inventory stood at 5.3 months in April, the highest level since last May.
“Next month will mark the passage of one year since the national average price rebounded from the recessionary trough to return to the pre-recession peak, so the rise in the national average price is expected to be more subdued next month, ” said CREA Chief Economist Gregory Klump. “The national average price could potentially be skewed higher over the next couple of months if buyers of higher priced homes in Ontario and British Columbia move their purchase decision forward to beat the introduction of the HST in July.”
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 http://www.crea.ca/public/news_stats/pdfs/media_apr10rpt.pdf
Wednesday, May 26, 2010
Terranet Index Indicates Monthly Price Rise of 0.3% in March for Canadian Home Prices
Canadian home prices in March were up 11.6% from a year earlier, according to the Teranet-National Bank National Composite House Price Index™. This acceleration from 12-month rises of 7.5% in January and 9.9% in February is attributable to the deflation that was in progress 12 months earlier. This base effect will continue through the results for April, the anniversary of the index bottom. The composite index in March was up 11.7% from that bottom. However, this gain is strongly influenced by Toronto, up 16.3% from April 2009, and Vancouver, up 14.4% from May 2009. In the four other markets surveyed, the rise from the respective troughs is less than 9%.
Month-over-month increases have recently decelerated considerably. The February and March gains of the composite index, at 0.2% and 0.3%, were the smallest in the 11 months since it began reflating. Contributing to the deceleration was a string of three consecutive monthly declines in Calgary, where March prices were down 0.3% from the month before.
Month-over-month increases have recently decelerated considerably. The February and March gains of the composite index, at 0.2% and 0.3%, were the smallest in the 11 months since it began reflating. Contributing to the deceleration was a string of three consecutive monthly declines in Calgary, where March prices were down 0.3% from the month before.
Successful Real Estate Teams in Toronto Need Leadership
Are you a team leader? Or are you thinking of forming a team? If so, take a look at his RE/MAX University video by Ken Goodfellow, "High-Performance Team: Part 2." Goodfellow, one of the real estate industry's leading coaches, shows you what it takes to build a great team: setting high standards and holding team members accountable; determining your strengths and weaknesses; defining team roles; and celebrating accomplishments.
RE/MAX University, which is free to RE/MAX Associates, features more than 1,000 video segments covering every facet of real estate productivity. Give me a call if you'd like to explore the business-building benefits of RU further.
Darryl Mitchell
Managing Broker
RE/MAX Professionals Inc. Brokerage
416-937-0367
RE/MAX University, which is free to RE/MAX Associates, features more than 1,000 video segments covering every facet of real estate productivity. Give me a call if you'd like to explore the business-building benefits of RU further.
Darryl Mitchell
Managing Broker
RE/MAX Professionals Inc. Brokerage
416-937-0367
Home ownership still affordable but becoming less so for older, lower income Canadians: CIBC World Markets Inc
CIBC's New Home Ownership Affordability Index finds diverging trends by income level
TORONTO, May 25 /CNW/ - Home Ownership remains within reach for most Canadians but is getting increasingly difficult for families with household income less than $50,000, finds CIBC World Markets Inc.'s new Home Ownership Affordability Index.
Today, Canadians spend 15.6 per cent of their average gross personal income on mortgage payments, which is about the same as ten years ago. When adding in hydro bills and property/municipal taxes, it rises to about 22 per cent of gross income. However, this amount varies widely depending on where you live, how much you make and how old you are.
"The vast majority of home owners in Canada regardless of their age have not experienced any worsening in affordability despite the rapid increase in prices," says Benjamin Tal, senior economist at CIBC, in his latest Consumer Watch report. "The only sub-group of households that have seen some deterioration in their affordability position is older Canadians with average income of less than $50,000. Zooming in on this group we find that on average they spend close to 60 per cent of their gross income on mortgage payments, property taxes and electricity costs. This is three times the average ratio seen among households at the same age groups but with income of over $50,000."
While these mortgage holders have seen their affordability drop over the last year, Mr. Tal notes that, unlike the U.S., this vulnerable group of Canadian mortgage holders is on the decline. This group accounts for only 13 per cent of all mortgages in Canada, down from 19 per cent five years ago. He adds that the least vulnerable mortgage holders in Canada - those over 35 with incomes over $50,000 - now comprise some 65 per cent of mortgages in Canada, up from less than 50 per cent of the market in 2003.
"The practical implication of this finding is that the composition of the mortgage market in Canada has, in fact, improved over the past few years," adds Mr. Tal.
In addition to percentage of income spent on mortgage payments, he also looked at house prices and interest rates in determining affordability. When it comes to prices, he finds that Canadian homes are overshooting their fair value. "The average price of a house has risen by almost 23 per cent since reaching its recent cyclical low in January 2009, and it is now almost seven per cent above the level seen before the recession. This pace of appreciation has been quicker than justified by housing market fundamentals such as income, rent or demographic changes."
Mr. Tal estimates that, on average, Canadian home prices are now around 14 per cent over their "fair" value. This translates into more than 1.5 million houses in Canada - about 17 per cent of all dwellings in the country. He calculates that about 760,000 of these are overvalued by more than five per cent. B.C. and Alberta house prices have overshot the most with nearly one in four homes in those provinces above their fair value.
"It is hardly a surprise that British Columbia has the worst affordability reading in the nation. But note that the gap between British Columbia and Ontario is not as large as most people think. Despite strong housing markets, Manitoba and Saskatchewan still enjoy the best home ownership affordability in the nation."
The Canadian housing market has started to stabilize in recent months. Supply is on the rise with April's new listings climbing by close to 3.4 per cent on a smoothed month-over-month basis. The current pace of monthly increases in new units is the fastest seen since early 1990. At the same time, unit sales are now falling on a month-over-month basis following a very strong increase in mid-2009. As a result, home prices are starting to respond, with the three-month moving average growth decelerating rapidly over the past six months.
"While the booming housing market is starting to come back to earth, the fact that prices are overvalued today does not necessarily mean that they will crash tomorrow," says Mr. Tal. "After all, a violent market correction needs a trigger such as the sub-prime crisis which ignited the U.S. real estate meltdown, or abnormally high interest rates as was the case during the 1991 property crash in Canada.
"Fortunately, that is not on the horizon this time around. While the Bank of Canada is very clear about its intention to raise rates soon, an array of limiting factors including a strong dollar, the end of fiscal stimulus, a slower pace of economic activity in the U.S., and a more rate-sensitive household sector suggest that rates will only climb very slowly over the next two years.
Unlike the U.S., the extended period of low interest rates in Canada did not lead to a surge in the number of mortgage borrowers in this country. In fact, the share of home owners with a mortgage fell from 54.9 per cent in 2004 to the current 53.3 per cent. In part, this reflects increased propensity of baby boomers to accelerate their mortgage payments due to these abnormally low interest rates. That phenomenon is observable across most of the country, with the only exception being Atlantic Canada.
While the number of mortgages has decreased, the average value of those mortgages has increased. Today, the average mortgage size in Canada is close to $170,000, up from $120,000 in 2004 - a 42 per cent jump in six years.
Mr. Tal's analysis finds that the increase in the average size of mortgage has not coincided with a significant worsening in affordability. "While higher interest rates will clearly erode affordability, our detailed look at the distribution of mortgage payments as a share of income does not reveal major pockets of vulnerability. Accordingly, the most likely scenario is that higher interest rates will lead to a modest decline in prices (probably in the magnitude of five to ten per cent) in the coming year or two.
"But given relatively modest rate hikes and the current balanced affordability position, the more significant adjustment will be in housing market fundamentals that are likely to catch up with prices in the coming years-paving the way for a healthier housing market by mid-decade."
Other key findings:
- There is no significant difference in affordability between households with fixed rate mortgages and those with variable rate mortgages. While variable mortgage holders enjoy lower interest rates, the average mortgage they carry is seven per cent larger.
- All age groups have relatively similar affordability readings despite the fact that on average young Canadians make less than older Canadians.
- Ontario and Quebec have the highest percentage of homes with mortgages at roughly 55 per cent.
As opposed to typical affordability measures, the CIBC Home Ownership Affordability Index looks at actual transactions (provided by Ipsos Reid) to estimate the carrying cost of owning a house in Canada as a share of gross income. This is in contrast to typical affordability measures which assume a synthetic mortgage (such as 25 per cent down-payment in today's prices).
"Access to real data allows us to take a closer look at affordability by income group, age and even by type of mortgage," notes Mr. Tal. "This kind of micro analysis is essential for a better understanding of real dynamics in the mortgage market."
The complete CIBC World Markets Inc. report is available at:
CIBC World Markets Inc. is the corporate and investment banking arm of CIBC. To deliver on our mandate as a premier client-focused and Canadian-based wholesale bank, we provide a wide range of credit, capital markets, investment banking, merchant banking and research products and services to government, institutional, corporate and retail clients in Canada and in key markets around the world.
TORONTO, May 25 /CNW/ - Home Ownership remains within reach for most Canadians but is getting increasingly difficult for families with household income less than $50,000, finds CIBC World Markets Inc.'s new Home Ownership Affordability Index.
Today, Canadians spend 15.6 per cent of their average gross personal income on mortgage payments, which is about the same as ten years ago. When adding in hydro bills and property/municipal taxes, it rises to about 22 per cent of gross income. However, this amount varies widely depending on where you live, how much you make and how old you are.
"The vast majority of home owners in Canada regardless of their age have not experienced any worsening in affordability despite the rapid increase in prices," says Benjamin Tal, senior economist at CIBC, in his latest Consumer Watch report. "The only sub-group of households that have seen some deterioration in their affordability position is older Canadians with average income of less than $50,000. Zooming in on this group we find that on average they spend close to 60 per cent of their gross income on mortgage payments, property taxes and electricity costs. This is three times the average ratio seen among households at the same age groups but with income of over $50,000."
While these mortgage holders have seen their affordability drop over the last year, Mr. Tal notes that, unlike the U.S., this vulnerable group of Canadian mortgage holders is on the decline. This group accounts for only 13 per cent of all mortgages in Canada, down from 19 per cent five years ago. He adds that the least vulnerable mortgage holders in Canada - those over 35 with incomes over $50,000 - now comprise some 65 per cent of mortgages in Canada, up from less than 50 per cent of the market in 2003.
"The practical implication of this finding is that the composition of the mortgage market in Canada has, in fact, improved over the past few years," adds Mr. Tal.
In addition to percentage of income spent on mortgage payments, he also looked at house prices and interest rates in determining affordability. When it comes to prices, he finds that Canadian homes are overshooting their fair value. "The average price of a house has risen by almost 23 per cent since reaching its recent cyclical low in January 2009, and it is now almost seven per cent above the level seen before the recession. This pace of appreciation has been quicker than justified by housing market fundamentals such as income, rent or demographic changes."
Mr. Tal estimates that, on average, Canadian home prices are now around 14 per cent over their "fair" value. This translates into more than 1.5 million houses in Canada - about 17 per cent of all dwellings in the country. He calculates that about 760,000 of these are overvalued by more than five per cent. B.C. and Alberta house prices have overshot the most with nearly one in four homes in those provinces above their fair value.
"It is hardly a surprise that British Columbia has the worst affordability reading in the nation. But note that the gap between British Columbia and Ontario is not as large as most people think. Despite strong housing markets, Manitoba and Saskatchewan still enjoy the best home ownership affordability in the nation."
The Canadian housing market has started to stabilize in recent months. Supply is on the rise with April's new listings climbing by close to 3.4 per cent on a smoothed month-over-month basis. The current pace of monthly increases in new units is the fastest seen since early 1990. At the same time, unit sales are now falling on a month-over-month basis following a very strong increase in mid-2009. As a result, home prices are starting to respond, with the three-month moving average growth decelerating rapidly over the past six months.
"While the booming housing market is starting to come back to earth, the fact that prices are overvalued today does not necessarily mean that they will crash tomorrow," says Mr. Tal. "After all, a violent market correction needs a trigger such as the sub-prime crisis which ignited the U.S. real estate meltdown, or abnormally high interest rates as was the case during the 1991 property crash in Canada.
"Fortunately, that is not on the horizon this time around. While the Bank of Canada is very clear about its intention to raise rates soon, an array of limiting factors including a strong dollar, the end of fiscal stimulus, a slower pace of economic activity in the U.S., and a more rate-sensitive household sector suggest that rates will only climb very slowly over the next two years.
Unlike the U.S., the extended period of low interest rates in Canada did not lead to a surge in the number of mortgage borrowers in this country. In fact, the share of home owners with a mortgage fell from 54.9 per cent in 2004 to the current 53.3 per cent. In part, this reflects increased propensity of baby boomers to accelerate their mortgage payments due to these abnormally low interest rates. That phenomenon is observable across most of the country, with the only exception being Atlantic Canada.
While the number of mortgages has decreased, the average value of those mortgages has increased. Today, the average mortgage size in Canada is close to $170,000, up from $120,000 in 2004 - a 42 per cent jump in six years.
Mr. Tal's analysis finds that the increase in the average size of mortgage has not coincided with a significant worsening in affordability. "While higher interest rates will clearly erode affordability, our detailed look at the distribution of mortgage payments as a share of income does not reveal major pockets of vulnerability. Accordingly, the most likely scenario is that higher interest rates will lead to a modest decline in prices (probably in the magnitude of five to ten per cent) in the coming year or two.
"But given relatively modest rate hikes and the current balanced affordability position, the more significant adjustment will be in housing market fundamentals that are likely to catch up with prices in the coming years-paving the way for a healthier housing market by mid-decade."
Other key findings:
- There is no significant difference in affordability between households with fixed rate mortgages and those with variable rate mortgages. While variable mortgage holders enjoy lower interest rates, the average mortgage they carry is seven per cent larger.
- All age groups have relatively similar affordability readings despite the fact that on average young Canadians make less than older Canadians.
- Ontario and Quebec have the highest percentage of homes with mortgages at roughly 55 per cent.
As opposed to typical affordability measures, the CIBC Home Ownership Affordability Index looks at actual transactions (provided by Ipsos Reid) to estimate the carrying cost of owning a house in Canada as a share of gross income. This is in contrast to typical affordability measures which assume a synthetic mortgage (such as 25 per cent down-payment in today's prices).
"Access to real data allows us to take a closer look at affordability by income group, age and even by type of mortgage," notes Mr. Tal. "This kind of micro analysis is essential for a better understanding of real dynamics in the mortgage market."
The complete CIBC World Markets Inc. report is available at:
CIBC World Markets Inc. is the corporate and investment banking arm of CIBC. To deliver on our mandate as a premier client-focused and Canadian-based wholesale bank, we provide a wide range of credit, capital markets, investment banking, merchant banking and research products and services to government, institutional, corporate and retail clients in Canada and in key markets around the world.
Thursday, May 20, 2010
RE/MAX Professionals Dedicated to the Childrens Miracle Network
One Million dollars! What an achievement!
RE/MAX Professionals Inc. staff have achieved a feat no other real estate Brokerage has avchieved, One Million Dollars towards the Childrens Miracle Network! Amazing!
We are so proud to support the Hospital for Sick Children loacted in Toronto through our donations to the Childrens Miracle Network. Our sales staff and support staff have been committed for years to this great cause and on June 10th at the Credit Valley Golf and Country Club we will be celebrating this sharing, caring and good will.
So the count down begins! $999,997 and counting!
RE/MAX Professionals Inc. staff have achieved a feat no other real estate Brokerage has avchieved, One Million Dollars towards the Childrens Miracle Network! Amazing!
We are so proud to support the Hospital for Sick Children loacted in Toronto through our donations to the Childrens Miracle Network. Our sales staff and support staff have been committed for years to this great cause and on June 10th at the Credit Valley Golf and Country Club we will be celebrating this sharing, caring and good will.
So the count down begins! $999,997 and counting!
Economic recovery fuels significant upswing in sales in Canada's recreational property markets, says RE/MAX
79 per cent of markets report upward trending in recreational sales in 2010
Mississauga, ON (May 20, 2010) - Serious year-over-year gains have characterized sales in most major Canadian recreational property markets this year, according to a report released today by RE/MAX.
The 2010 RE/MAX Recreational Property Report, highlighting sales, prices, trends and developments in close to 50 markets from coast-to-coast, found that 79 per cent of recreational areas reported an upswing in the number of properties sold during the first three months of the year. Starting prices for recreational product were also on the move, with 43 per cent posting a nominal increase. Inventory levels, with the exception of the coveted entry-level price point, were healthy and balanced market conditions prevailed in most areas.
"While sales have been strong out of the gate, the number of waterfront cottages, condominiums, and back lot properties sold in the first quarter still fall short of pre-recession levels," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "However, with peak season fast approaching, stimuli such as softer values, greater selection, and relatively low interest rates may prove difficult for recreational property buyers to resist."
Mississauga, ON (May 20, 2010) - Serious year-over-year gains have characterized sales in most major Canadian recreational property markets this year, according to a report released today by RE/MAX.
The 2010 RE/MAX Recreational Property Report, highlighting sales, prices, trends and developments in close to 50 markets from coast-to-coast, found that 79 per cent of recreational areas reported an upswing in the number of properties sold during the first three months of the year. Starting prices for recreational product were also on the move, with 43 per cent posting a nominal increase. Inventory levels, with the exception of the coveted entry-level price point, were healthy and balanced market conditions prevailed in most areas.
"While sales have been strong out of the gate, the number of waterfront cottages, condominiums, and back lot properties sold in the first quarter still fall short of pre-recession levels," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "However, with peak season fast approaching, stimuli such as softer values, greater selection, and relatively low interest rates may prove difficult for recreational property buyers to resist."
Monday, May 17, 2010
Canada's hot resale housing market starting to cool
OTTAWA - May 17th, 2010 - Home sales activity in Canada came up short of the record for the month of April and new listings continued to climb, according to statistics released by The Canadian Real Estate Association (CREA).
Residential sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards numbered 52,042 units in April 2010. This is less than one per cent short of the record for national sales activity during the month of April, which was set in 2007. Compared to April 2009, national activity was up 20 per cent.
Seasonally adjusted national home sales activity slipped 2.6 per cent from the previous month, and now stands 6.8 per cent below the peak reached in December 2009. More than half of the decline in activity over the first four months of 2010 from in British Columbia, while activity in Ontario and Quebec remains at or near record levels.
"The easing trend in national sales activity masks a rising trend in a number of major markets," said CREA President Georges Pahud. "Real estate is local, so buyers and sellers should engage the services of a REALTOR® for knowledge about housing market trends in their market."
Some 99,901 homes were newly listed for sale on Canadian MLS® Systems in April 2010, surpassing the previous record for the month of April set in 2008 by six-tenths of one per cent. A total of 236,397 residential properties were listed for sale on Boards’ MLS® Systems at the end of April 2010, down 1.9 per cent from levels one year earlier.
As for the national average price of homes sold via Canadian MLS® Systems, that figure rose 12.2 per cent over this time last year. This is a smaller increase compared to those recorded over the past eight months. Bucking the national trend, price gains continue to increase in a number of major markets in Alberta, Ontario and Quebec.
With last year’s string of downwardly skewed average price values having now mostly passed, and with activity in British Columbia’s lower mainland having settled down, year-over-year national average price comparisons are coming back into line with changes in the national weighted average price.
The weighted average price compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 11.3 per cent on a year-over-year basis in April 2010. Similarly, the residential average price in Canada’s major markets climbed 12.9 per cent year-over-year in April, while the weighted major market average price rose 12.1 per cent.
The actual (not seasonally adjusted) number of months of inventory stood at 4.5 months in April 2010. This is down from levels one year ago (5.6 months) and April 2008 (4.7 months), but up compared to April levels from 2004 through 2007. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
On a seasonally adjusted basis, months of inventory stood at 5.3 months in April, the highest level since last May.
"Next month will mark the passage of one year since the national average price rebounded from the recessionary trough to return to the pre-recession peak, so the rise in the national average price is expected to be more subdued next month, " said CREA Chief Economist Gregory Klump. "The national average price could potentially be skewed higher over the next couple of months if buyers of higher priced homes in Ontario and British Columbia move their purchase decision forward to beat the introduction of the HST in July." 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 98,000 REALTORS® working through more than 100 real estate Boards and Associations. Further information can be found at http://www.crea.ca/.
For more information, please contact:
Alyson Fair, Publicist
613-237-7111 or 613-884-1460
Email: afair@crea.ca
Residential sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards numbered 52,042 units in April 2010. This is less than one per cent short of the record for national sales activity during the month of April, which was set in 2007. Compared to April 2009, national activity was up 20 per cent.
Seasonally adjusted national home sales activity slipped 2.6 per cent from the previous month, and now stands 6.8 per cent below the peak reached in December 2009. More than half of the decline in activity over the first four months of 2010 from in British Columbia, while activity in Ontario and Quebec remains at or near record levels.
"The easing trend in national sales activity masks a rising trend in a number of major markets," said CREA President Georges Pahud. "Real estate is local, so buyers and sellers should engage the services of a REALTOR® for knowledge about housing market trends in their market."
Some 99,901 homes were newly listed for sale on Canadian MLS® Systems in April 2010, surpassing the previous record for the month of April set in 2008 by six-tenths of one per cent. A total of 236,397 residential properties were listed for sale on Boards’ MLS® Systems at the end of April 2010, down 1.9 per cent from levels one year earlier.
As for the national average price of homes sold via Canadian MLS® Systems, that figure rose 12.2 per cent over this time last year. This is a smaller increase compared to those recorded over the past eight months. Bucking the national trend, price gains continue to increase in a number of major markets in Alberta, Ontario and Quebec.
With last year’s string of downwardly skewed average price values having now mostly passed, and with activity in British Columbia’s lower mainland having settled down, year-over-year national average price comparisons are coming back into line with changes in the national weighted average price.
The weighted average price compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 11.3 per cent on a year-over-year basis in April 2010. Similarly, the residential average price in Canada’s major markets climbed 12.9 per cent year-over-year in April, while the weighted major market average price rose 12.1 per cent.
The actual (not seasonally adjusted) number of months of inventory stood at 4.5 months in April 2010. This is down from levels one year ago (5.6 months) and April 2008 (4.7 months), but up compared to April levels from 2004 through 2007. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
On a seasonally adjusted basis, months of inventory stood at 5.3 months in April, the highest level since last May.
"Next month will mark the passage of one year since the national average price rebounded from the recessionary trough to return to the pre-recession peak, so the rise in the national average price is expected to be more subdued next month, " said CREA Chief Economist Gregory Klump. "The national average price could potentially be skewed higher over the next couple of months if buyers of higher priced homes in Ontario and British Columbia move their purchase decision forward to beat the introduction of the HST in July." 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 98,000 REALTORS® working through more than 100 real estate Boards and Associations. Further information can be found at http://www.crea.ca/.
For more information, please contact:
Alyson Fair, Publicist
613-237-7111 or 613-884-1460
Email: afair@crea.ca
Tuesday, May 11, 2010
Real Trends 200 Largest Canadian Brokerages 2009
Prepared by Darryl Mitchell, Managing Broker, RE/MAX Professionals Inc. Brokerage
Congratulations to RE/MAX Professionals Inc. and their staff for ranking in the Top 20 Largest Brokerages in Canada for Closed Sales Volume in 2009. This prestigious ranking was published this month in REAL TRENDS magazine.
Not often do real estate companies get rated by independent sources, but REAL TRENDS magazine did just that in its most recent addition. REAL TRENDS, a well known American publication that publishes current news and views on real estate in the United States, crossed the Northern border for the first time as it estimated the relative success of Canada’s Top 200 Real Estate Brokerages.
REAL TRENDS U.S. numbers have been distributed for years. This year’s publication which rated the Brokerages across Canada by number of transactions and closed dollar sales volume is a first. This is the first time that an independent group has published a recognizable and coordinated resource for real estate companies and the public at large to compare which real estate brokerages are leaders in their distinctive communities.
In a separate twist, this report which also states the number of offices and agents registered to each company, allows the companies and Brands to be compared by effectiveness. From the 20 top sales dollar value companies, for instance, 12 or 60% are from RE/MAX, 5 or 25% are from Royal LePage, two are independents, and one is from Prudential Real Estate. This should not be too surprising as the overall national market share follows a similar trend with RE/MAX the dominant leader with over 35% National Market Share.
For RE/MAX PROFESSIONALS INC. the statistics show a remarkable story of success. Not only is RE/MAX Professionals 20th of the list of 200, but it achieved this with 270 agents in 3 offices far lower than many of the competitive companies in its area. As for the ranking by units sold in 2009, RE/MAX Professionals placed 37th of the 200 companies surveyed across Canada.
On a more local note, RE/MAX Professionals ranked 7th of the Greater Toronto Area participants and was one of five RE/MAX sister brokerages in the Top 20 by Closed Dollar Volume. Two Royal LePage brokerages also made this prestigious list of seven GTA companies. Again, overall market share in the GTA region supports this trend as RE/MAX hold the number one market share in all the GTA communities from plus 31% in Toronto to plus 35% in Mississauga.
Congratulations to all of the successful real estate brokerages and their dedicated Realtors!
Congratulations to RE/MAX Professionals Inc. and their staff for ranking in the Top 20 Largest Brokerages in Canada for Closed Sales Volume in 2009. This prestigious ranking was published this month in REAL TRENDS magazine.
Not often do real estate companies get rated by independent sources, but REAL TRENDS magazine did just that in its most recent addition. REAL TRENDS, a well known American publication that publishes current news and views on real estate in the United States, crossed the Northern border for the first time as it estimated the relative success of Canada’s Top 200 Real Estate Brokerages.
REAL TRENDS U.S. numbers have been distributed for years. This year’s publication which rated the Brokerages across Canada by number of transactions and closed dollar sales volume is a first. This is the first time that an independent group has published a recognizable and coordinated resource for real estate companies and the public at large to compare which real estate brokerages are leaders in their distinctive communities.
In a separate twist, this report which also states the number of offices and agents registered to each company, allows the companies and Brands to be compared by effectiveness. From the 20 top sales dollar value companies, for instance, 12 or 60% are from RE/MAX, 5 or 25% are from Royal LePage, two are independents, and one is from Prudential Real Estate. This should not be too surprising as the overall national market share follows a similar trend with RE/MAX the dominant leader with over 35% National Market Share.
For RE/MAX PROFESSIONALS INC. the statistics show a remarkable story of success. Not only is RE/MAX Professionals 20th of the list of 200, but it achieved this with 270 agents in 3 offices far lower than many of the competitive companies in its area. As for the ranking by units sold in 2009, RE/MAX Professionals placed 37th of the 200 companies surveyed across Canada.
On a more local note, RE/MAX Professionals ranked 7th of the Greater Toronto Area participants and was one of five RE/MAX sister brokerages in the Top 20 by Closed Dollar Volume. Two Royal LePage brokerages also made this prestigious list of seven GTA companies. Again, overall market share in the GTA region supports this trend as RE/MAX hold the number one market share in all the GTA communities from plus 31% in Toronto to plus 35% in Mississauga.
Congratulations to all of the successful real estate brokerages and their dedicated Realtors!
Tuesday, May 4, 2010
March pending U.S. home sales up 5% from February and 21% from March 2009
May 4, 2010, 10:00 a.m. EDT Market Watch Press Release
U.S. pending home sales rise 5.3% in MarchStory
Comments Screener (16) Alert Email Print ShareBy Ruth Mantell WASHINGTON (MarketWatch) -- Supported by a tax credit, the pending home sales index rose a seasonally adjusted 5.3% in March, and was up 21.1% compared with a year earlier, the National Association of Realtors said Tuesday. In February, the index rose 8.3%, compared with an earlier estimate of an 8.2% gain. For March sales contracts rose 12.7% in the South, 1.9% in the West and 1.2% in the Midwest. Contracts declined 3.3% in the Northeast.
U.S. pending home sales rise 5.3% in MarchStory
Comments Screener (16) Alert Email Print ShareBy Ruth Mantell WASHINGTON (MarketWatch) -- Supported by a tax credit, the pending home sales index rose a seasonally adjusted 5.3% in March, and was up 21.1% compared with a year earlier, the National Association of Realtors said Tuesday. In February, the index rose 8.3%, compared with an earlier estimate of an 8.2% gain. For March sales contracts rose 12.7% in the South, 1.9% in the West and 1.2% in the Midwest. Contracts declined 3.3% in the Northeast.
Monday, May 3, 2010
Further deceleration of home-price rises in February: Teranet – National Bank National Composite House Price Index™
Canadian home prices in February were up 9.9% from a year earlier, according to the Teranet-National Bank National Composite House Price Index™. This acceleration from 12-month rises of 7.5% in January and 5.2% in December is attributable to the deflation that was in progress 12 months earlier. This base effect will continue through the results for April, the anniversary of the index bottom. The composite index has been on the rise since then and is now up 11.7% from the bottom. However, this gain is strongly influenced by Toronto, up 16.2% from April 2009, and Vancouver, up 14.1% from May 2009. In the four other markets surveyed, the rise from the respective troughs is less than 9%.
Month-over-month gains have recently decelerated considerably. The 0.2% February rise in the composite index was the smallest in the 10 months since it began climbing. In two of the six markets surveyed, prices were down from the month before.
The historical data of the Teranet – National Bank House Price Index™ is available at http://www.housepriceindex.ca/.
The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. This is known as the repeat sales method; a complete description of the method is given at http://www.housepriceindex.ca/
The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion.
All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005.
By:
Marc Pinsonneault
Senior Economist
Economy and Strategy Group
National Bank Financial Group
Month-over-month gains have recently decelerated considerably. The 0.2% February rise in the composite index was the smallest in the 10 months since it began climbing. In two of the six markets surveyed, prices were down from the month before.
The historical data of the Teranet – National Bank House Price Index™ is available at http://www.housepriceindex.ca/.
The Teranet–National Bank House Price Index™ is estimated by tracking observed or registered home prices over time using data collected from public land registries. All dwellings that have been sold at least twice are considered in the calculation of the index. This is known as the repeat sales method; a complete description of the method is given at http://www.housepriceindex.ca/
The Teranet–National Bank House Price Index™ is an independently developed representation of average home price changes in six metropolitan areas: Ottawa, Toronto, Calgary, Vancouver, Montreal and Halifax. The national composite index is the weighted average of the six metropolitan areas. The weights are based on aggregate value of dwellings as retrieved from the 2006 Statistics Canada Census. According to that census1, the aggregate value of occupied dwellings in the metropolitan areas covered by the indices was $1.168 trillion, or 53% of the Canadian aggregate value of $2.207 trillion.
All indices have a base value of 100 in June 2005. For example, an index value of 130 means that home prices have increased 30% since June 2005.
By:
Marc Pinsonneault
Senior Economist
Economy and Strategy Group
National Bank Financial Group
Q1-2010 NEWCONDOMINIUM UNIT SALES HIT HIGHEST EVER Q1 NUMBER IN TORONTO
TORONTO - May 3, 2010…Urbanation, Inc., since 1981 the leading source of information and analysis on the Toronto Census Metropolitan Area – CMA condominium market, today released its Q1-2010 market overview.
Said Urbanation Editor and Executive Vice President Ben Myers, “Q1-2010’s 5,415 new condominium sales in the CMA were down slightly from Q4-2009’s 6,295 new unit sales, however, Q1’s total of new units sold is still the highest-ever number of first quarter new unit sales in the history of the CMA.
“This year’s Q1 new unit sales were nearly six times higher than the recession impacted Q1. 2009’s new unit sales, an astounding increase of 491 per cent year-over-year,” he added.
Average price per square foot (PSF) for all new units sold in the CMA was up only modestly, from $418 in Q1-2009, to $443 in Q1-2010. The unsold units in the market are being offered a $509 PSF on average in the CMA.
Nearly 4,000 condominium units started construction in Q1-2010, equaling the total during the previous nine months, a very encouraging sign for the health of the Toronto market. Resale volumes also remained strong at 4,290 in Q1-2010, almost double the 2,225 resales in
Q1-2009. And resale price appreciation was robust, springing from an average resale price per unit of $280,000 in Q1-2009, to $331,000 in Q1-2010. There were a record number of listings in Q1-2010 and units traded quickly, as the average unit took just 22 days to sell.
Said Myers, “Underlying market conditions including potential future interest rate increases, new mortgage rules and to a certain extent misinformation regarding the implementation of the HST,
were all factors that affected the increased level of listings in the CMA. A secondary factor was that many potential sellers did not list their units for sale in the wake of the last year’s recession, despite the strong resale market over the final three quarters of 2009.”
“However, despite the positive market indicators, if CMA condominium builders are led to rrational exuberance, and overbuild beyond what the market can absorb, an over-supply ituation could potentially re-emerge. As many as 30 projects and 7,000 units could launch in
Q2-2010, so we believe unsold supply is an indicator to watch closely in coming quarters,” he dded.
ABOUT URBANATION
Urbanation is Canada's leading condominium market research company. Since 1981, Urbanation as analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s Condominium Market Survey. This quarterly Report tracks new, resale and future condominium projects. Urbanation also provides the development community with essential consulting services, which include site and topic specific market studies and surveys.
Contact: David Eisenstadt / Beth Merrick
The Communications Group Inc.
416.696.9900 ext. 36 or ext. 40
deisenstadt@tcgpr.com / bmerrick@tcgpr.com
www.urbanation.ca
www.twitter.com/urbanation
Said Urbanation Editor and Executive Vice President Ben Myers, “Q1-2010’s 5,415 new condominium sales in the CMA were down slightly from Q4-2009’s 6,295 new unit sales, however, Q1’s total of new units sold is still the highest-ever number of first quarter new unit sales in the history of the CMA.
“This year’s Q1 new unit sales were nearly six times higher than the recession impacted Q1. 2009’s new unit sales, an astounding increase of 491 per cent year-over-year,” he added.
Average price per square foot (PSF) for all new units sold in the CMA was up only modestly, from $418 in Q1-2009, to $443 in Q1-2010. The unsold units in the market are being offered a $509 PSF on average in the CMA.
Nearly 4,000 condominium units started construction in Q1-2010, equaling the total during the previous nine months, a very encouraging sign for the health of the Toronto market. Resale volumes also remained strong at 4,290 in Q1-2010, almost double the 2,225 resales in
Q1-2009. And resale price appreciation was robust, springing from an average resale price per unit of $280,000 in Q1-2009, to $331,000 in Q1-2010. There were a record number of listings in Q1-2010 and units traded quickly, as the average unit took just 22 days to sell.
Said Myers, “Underlying market conditions including potential future interest rate increases, new mortgage rules and to a certain extent misinformation regarding the implementation of the HST,
were all factors that affected the increased level of listings in the CMA. A secondary factor was that many potential sellers did not list their units for sale in the wake of the last year’s recession, despite the strong resale market over the final three quarters of 2009.”
“However, despite the positive market indicators, if CMA condominium builders are led to rrational exuberance, and overbuild beyond what the market can absorb, an over-supply ituation could potentially re-emerge. As many as 30 projects and 7,000 units could launch in
Q2-2010, so we believe unsold supply is an indicator to watch closely in coming quarters,” he dded.
ABOUT URBANATION
Urbanation is Canada's leading condominium market research company. Since 1981, Urbanation as analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s Condominium Market Survey. This quarterly Report tracks new, resale and future condominium projects. Urbanation also provides the development community with essential consulting services, which include site and topic specific market studies and surveys.
Contact: David Eisenstadt / Beth Merrick
The Communications Group Inc.
416.696.9900 ext. 36 or ext. 40
deisenstadt@tcgpr.com / bmerrick@tcgpr.com
www.urbanation.ca
www.twitter.com/urbanation
Reader's Digest names RE/MAX 'Most Trusted Residential Real Estate Brand in Canada'
Mississauga, ON (May 3, 2010) -- Dedication, skill, and professionalism earned RE/MAX realtors the designation of Most Trusted Residential REALTOR in Canada by Reader’s Digest magazine. Reader’s Digest will unveil its “Most Trusted Brands” list in its May 2010 issue. The magazine commissioned independent third party Harris/Decima to conduct 1,500 online surveys among a random sample of its panel members from October 2 – 15, 2009.
“The results of the survey are proof positive that our sales associates are the best in the business,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “We’ve built a solid reputation based on consistent results. RE/MAX associates sell one in every three homes in Canada and carry more professional designations than any other realtor in Canada. We’re specialists in all niches from residential, recreational, and commercial properties to luxury homes. Our focus has always been service excellence, which includes a serious emphasis on professional development and education. The status quo may work for some, but after almost 40 years in the business, we’re not content to rest on our laurels. “
Reader’s Digest looked at 28 different product categories -- ranging from cereal to residential real estate – and allowed consumers to select the brands that they trusted the most. RE/MAX joins leading brands such as RBC Royal Bank, TD Canada Trust, Air Canada, and Blackberry.
“Our commitment to the communities in which we live and work also runs deep,” says Polzler. “I think that’s something that has always set RE/MAX apart. We’ve been involved in charitable giving long before the terms ‘corporate philanthropy’ and ‘cause marketing’ were common. RE/MAX realtors participate in countless vital programs and causes each year that help the most vulnerable members of our society and strengthen the foundation of neigbhourhoods from coast to coast. Their enthusiasm, spirit and dedication to others never fails to inspire.”
Charitable giving is woven into the fabric of the RE/MAX organization. The company and its sales force has demonstrated a strong desire to give back, exceptionally active in both corporate and local charities. Close to $40 million has been raised in support of Children’s Miracle Network since 1992 – which funds research and development, outreach programs and upgrades to equipment and facilities at children’s hospitals and foundations across the country. The Canadian Breast Cancer Foundation is also a cause close to the hearts of RE/MAX associates—one that RE/MAX continues to support through its popular Sold on a Cure Program and the annual Yard Sale for the Cure.
RE/MAX is Canada’s leading real estate organization with over 17,500 sales associates situated throughout its more than 680 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in 80 countries. Over 6,450 independently-owned offices engage over 92,000 member sales associates who lead the industry in professional designations, experience, and production, while providing real estate services in residential, commercial, referral, and asset management.
For more information, visit: www.remax.ca.
For more information:
Christine Martysiewicz
RE/MAX Ontario-Atlantic Canada
905.542.2400
“The results of the survey are proof positive that our sales associates are the best in the business,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “We’ve built a solid reputation based on consistent results. RE/MAX associates sell one in every three homes in Canada and carry more professional designations than any other realtor in Canada. We’re specialists in all niches from residential, recreational, and commercial properties to luxury homes. Our focus has always been service excellence, which includes a serious emphasis on professional development and education. The status quo may work for some, but after almost 40 years in the business, we’re not content to rest on our laurels. “
Reader’s Digest looked at 28 different product categories -- ranging from cereal to residential real estate – and allowed consumers to select the brands that they trusted the most. RE/MAX joins leading brands such as RBC Royal Bank, TD Canada Trust, Air Canada, and Blackberry.
“Our commitment to the communities in which we live and work also runs deep,” says Polzler. “I think that’s something that has always set RE/MAX apart. We’ve been involved in charitable giving long before the terms ‘corporate philanthropy’ and ‘cause marketing’ were common. RE/MAX realtors participate in countless vital programs and causes each year that help the most vulnerable members of our society and strengthen the foundation of neigbhourhoods from coast to coast. Their enthusiasm, spirit and dedication to others never fails to inspire.”
Charitable giving is woven into the fabric of the RE/MAX organization. The company and its sales force has demonstrated a strong desire to give back, exceptionally active in both corporate and local charities. Close to $40 million has been raised in support of Children’s Miracle Network since 1992 – which funds research and development, outreach programs and upgrades to equipment and facilities at children’s hospitals and foundations across the country. The Canadian Breast Cancer Foundation is also a cause close to the hearts of RE/MAX associates—one that RE/MAX continues to support through its popular Sold on a Cure Program and the annual Yard Sale for the Cure.
RE/MAX is Canada’s leading real estate organization with over 17,500 sales associates situated throughout its more than 680 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in 80 countries. Over 6,450 independently-owned offices engage over 92,000 member sales associates who lead the industry in professional designations, experience, and production, while providing real estate services in residential, commercial, referral, and asset management.
For more information, visit: www.remax.ca.
For more information:
Christine Martysiewicz
RE/MAX Ontario-Atlantic Canada
905.542.2400
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