Source: Teranet National Bank House Price Index
Canadian home prices in July were up 12.4% from a year earlier, according to the Teranet-National Bank National Composite House Price Index™. It was the smallest 12-month gain in four months. Such a deceleration was observed in Toronto and Vancouver, where the 12-month increase was nevertheless more than 14%. In Ottawa it was 10.9%. In the other three markets, it was more moderate, ranging from 6.5% to 8.5%.
For the first time in four months, prices did not rise from the month before in all six markets. The Vancouver index was down 0.3% from June. The monthly rises were 0.2% in Halifax, 0.4% in Montreal and Calgary, 1.2% in Toronto and 1.5% in Ottawa. It is plausible to think the index movement in the last two markets was influenced by transactions timed to avoid the July 1 introduction of the harmonized sales tax in Ontario. For the composite index as a whole the monthly rise was 0.5%, the smallest in four months. It was the 15th monthly rise, making this run of increases the longest since October 2006.
Wednesday, September 29, 2010
Tuesday, September 28, 2010
Making room for a new tax
KERRY GOLD
From Friday's Globe and Mail
Published Thursday, Sep. 23, 2010 1:52PM EDTOther than the build-up to it, general industry response would suggest the Harmonized Sales Tax has had relatively little impact on the B.C. housing market.
"On the whole, the HST’s effect on the market has been more psychological,” says Dan Scarrow, vice-president for Macdonald Realty in Vancouver. “Buyers rushed to buy before July 1st, then sat on their hands for the months following its introduction to see what would happen to the market.”
The underwhelming effect might be due to the fact that the HST only applies to newly built housing, and closing costs, such as inspections, legal fees and commissions. As well, the government offers rebates on houses that are priced lower, thereby exempting a whole demographic of new home buyer. In theory, lower construction costs should close the gap between pre-HST pricing and post-HST pricing
For the remainder of the article go tyo the linl above.
From Friday's Globe and Mail
Published Thursday, Sep. 23, 2010 1:52PM EDTOther than the build-up to it, general industry response would suggest the Harmonized Sales Tax has had relatively little impact on the B.C. housing market.
"On the whole, the HST’s effect on the market has been more psychological,” says Dan Scarrow, vice-president for Macdonald Realty in Vancouver. “Buyers rushed to buy before July 1st, then sat on their hands for the months following its introduction to see what would happen to the market.”
The underwhelming effect might be due to the fact that the HST only applies to newly built housing, and closing costs, such as inspections, legal fees and commissions. As well, the government offers rebates on houses that are priced lower, thereby exempting a whole demographic of new home buyer. In theory, lower construction costs should close the gap between pre-HST pricing and post-HST pricing
For the remainder of the article go tyo the linl above.
A bright idea gets bank backing by TD Bank
Terrence Belford
From Friday's Globe and Mail
Published Friday, Sep. 24, 2010 9:08AM EDTIn a ground-breaking move for a financial institution, the Toronto-Dominion Bank has decided to go as green as its logo.
The main initiative is to get Canadians to install solar panels on their roofs and reduce the tyranny of non-renewable energy. To do that, the bank is running a national advertising campaign extolling the benefits – environmental and financial – of every home generating its own solar power and has introduced a new series of low-cost loans to let homeowners finance their conversion to solar power.
“It started about six months ago when Karen Clarke-Whistler, our chief environmental officer, got all the operating units of the bank together to see if we could come up with a bank-wide initiative to promote green energy,” says Don Cooper, manager of TD financing services.
“A bank-wide initiative like that was the first for us and we were able to come up with a number of programs.”
One of the things that persuaded the bankers to take solar power seriously was a survey the bank had done of 1,000 Canadians 25 years or older who owned their own home.
For the entire article go to the link in the title.
From Friday's Globe and Mail
Published Friday, Sep. 24, 2010 9:08AM EDTIn a ground-breaking move for a financial institution, the Toronto-Dominion Bank has decided to go as green as its logo.
The main initiative is to get Canadians to install solar panels on their roofs and reduce the tyranny of non-renewable energy. To do that, the bank is running a national advertising campaign extolling the benefits – environmental and financial – of every home generating its own solar power and has introduced a new series of low-cost loans to let homeowners finance their conversion to solar power.
“It started about six months ago when Karen Clarke-Whistler, our chief environmental officer, got all the operating units of the bank together to see if we could come up with a bank-wide initiative to promote green energy,” says Don Cooper, manager of TD financing services.
“A bank-wide initiative like that was the first for us and we were able to come up with a number of programs.”
One of the things that persuaded the bankers to take solar power seriously was a survey the bank had done of 1,000 Canadians 25 years or older who owned their own home.
For the entire article go to the link in the title.
Saturday, September 25, 2010
2010 RE/MAX Fall Connect
Do not miss this great opportunity to upgrade your business skills, to network and just have fun. If you need an energy boost this will be the place. See you there!
Call Darryl Mitchell, Broker Manager of RE/MAX Professionals if you wish to register.
Call Darryl Mitchell, Broker Manager of RE/MAX Professionals if you wish to register.
U.S. housing market needs time to recover, not more stimulus
August 25, 2010
12:40
Sharon Singleton
MoneyThe U.S. housing market is likely to remain depressed until at least next year and any further government efforts to stimulate demand would only distort the market, economists say.
Data released Wednesday showed sales of new U.S. family homes fell to their lowest level on record in July, with prices recording their biggest drop in six and a half years.
The Commerce Department said sales dropped 12.4% to a 276,000 unit annual rate, much worse than economists’ expectations for sales to remain flat.
The figures followed existing home sales data on Tuesday that showed a 27% plunge in July, raising fears that the lack of recovery in the housing market will be the straw that broke the camel’s back in tipping the overall economy back into recession.
Those fears may be overblown and the current slowdown is largely the result of the expiry of a homebuyers tax credit introduced to stimulate the market, some economists say.
“We were always anticipating a slowdown, though the magnitude is a little concerning,” said Alistair Bentley, a U.S. regional economist with TD Bank Financial Group. “The problem with stimulus programs is that you get a kick up and then have to pay the price.”
12:40
Sharon Singleton
MoneyThe U.S. housing market is likely to remain depressed until at least next year and any further government efforts to stimulate demand would only distort the market, economists say.
Data released Wednesday showed sales of new U.S. family homes fell to their lowest level on record in July, with prices recording their biggest drop in six and a half years.
The Commerce Department said sales dropped 12.4% to a 276,000 unit annual rate, much worse than economists’ expectations for sales to remain flat.
The figures followed existing home sales data on Tuesday that showed a 27% plunge in July, raising fears that the lack of recovery in the housing market will be the straw that broke the camel’s back in tipping the overall economy back into recession.
Those fears may be overblown and the current slowdown is largely the result of the expiry of a homebuyers tax credit introduced to stimulate the market, some economists say.
“We were always anticipating a slowdown, though the magnitude is a little concerning,” said Alistair Bentley, a U.S. regional economist with TD Bank Financial Group. “The problem with stimulus programs is that you get a kick up and then have to pay the price.”
Home sales increase for the first time since March States CMHC
Wednesday, September 15, 2010 1:18pm
The Canadian Real Estate Association (CREA) reported that home sales rose by 4.1 per cent in August, the first monthly sales increase since March. Ontario and British Columbia enjoyed the most activity. However, CREA predicts sales will likely stay slow. Home prices were stagnant in August at an average of $324,928, the same as last year. But though the number of listings rose 1.9 per cent, that’s still down down 16 per cent from last April’s peak
The Canadian Real Estate Association (CREA) reported that home sales rose by 4.1 per cent in August, the first monthly sales increase since March. Ontario and British Columbia enjoyed the most activity. However, CREA predicts sales will likely stay slow. Home prices were stagnant in August at an average of $324,928, the same as last year. But though the number of listings rose 1.9 per cent, that’s still down down 16 per cent from last April’s peak
Tuesday, September 21, 2010
Tweetlister - Twitter for Real Estate
What if you could send you property listing to the fastest growing public forum available, Twitter? Would that make different than the others in real estate? Could you possibly get more buyer leads? More Buyers?
Tweetlister is the answer to those who wish to put their listings out there fartherr, faster and better. Check out this revolutionary WEB 2.0 tool that may change the way you think of Internet marketing.
By the way, this is not a commercial from the supplier. This is another of the suggested tools that @impact professional development from RE/MAX Professionals can provide to you.
Want to learn more? Contact Darryl Mitchell at dmitchell@remaxprofesionals.ca
Tweetlister is the answer to those who wish to put their listings out there fartherr, faster and better. Check out this revolutionary WEB 2.0 tool that may change the way you think of Internet marketing.
By the way, this is not a commercial from the supplier. This is another of the suggested tools that @impact professional development from RE/MAX Professionals can provide to you.
Want to learn more? Contact Darryl Mitchell at dmitchell@remaxprofesionals.ca
U.S. housing starts jump 10.5% in August
By Greg Robb and Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — New housing starts surged 10.5% in August to the highest level since spring, but the activity was driven by a sharp spike in apartment construction, government data showed.
Housing starts rose in August to an annualized rate of 598,000, compared with a revised 0.4% increase in July, the Commerce Department reported Tuesday. Economists surveyed by MarketWatch had expected housing starts to drop to 535,000 on a seasonally adjusted basis.
While the report seemed to point to an upturn in the weak U.S. housing market, most economists downplayed the better-than-expected number. They pointed out that data for multi-family starts, which surged 32.2% in August, is notoriously volatile and represents just a small portion of the housing market.
New construction of single-family homes, which account for 75% of the housing market, rose a much smaller 4.3% to an annualized rate of 438,000. Although it was the first increase in four months, construction of single-family homes is still 9.1% lower compared to year ago.
“While the volatile multi-family sector was responsible for the overall level of starts in August being higher than expected, the more important single-family component remains severely depressed,” noted chief economist Joshua Shapiro of MFR Inc.
Starts rose in all regions except the Northeast, where they slumped 24.3%. Big increases in the West (34.3%) and the Midwest (21.7%) offset that decline.
Data on housing starts has always been hard to measure and the government report is prone to sharp revisions. Complicating the picture was a federal tax credit for new home buyers that expired earlier this year. The credit caused home sales to spike in the spring, peaking at 679,000 in April, and then plunge over the summer, falling to as low as 539,00 in June.
Economists say the effects of the credit have largely dissipated, giving them a clearer view of the health of the housing market.
“We have found a bottom for housing activity. It’s at a pitiful level, but it should grow from here,” said senior U.S. economist Ellen Beeson Zentner of Bank of Toyko-Mitsubishi.
Permits for new construction, a more accurate gauge of home building, increased 1.8% in August to an annualized rate of 569,000.
Permits for condominiums and apartments rose 9.8%, but permits for single-family homes dipped 1.2% to an annual rate of 401,000. Single-family permits are viewed as one of the best indicators of future economic health and tend to draw the most attention of economists.
“This marks the fifth consecutive monthly drop and is indicative of deterioration in demand for new homes,” economist Michelle Meyer of Bank of America/Merrill Lynch said in an email.
The housing market plays a huge role in the U.S. It’s usually one of the first to weaken before a recession and one of the quickest to recover as growth resumes. The housing industry also has wide-ranging influence on the rest of the economy, since so many raw materials and finished goods are required to build homes and furnish them after sale. Yet the housing sector has struggled mightily since the housing bubble burst two years ago and pulled the economy down with it. Even though the recession has been officially declared over, the U.S. economy is growing very slowly and the unemployment rate stands near a 27-year high, dampening demand for new homes. See full story on the NBER determination that the U.S.’s recession ended last summer.
Because of sharp fluctuations in starts data, economists say it can take several months to detect new trends. In the past four months, housing starts have averaged an annualized 567,000, down from 587,000 in the four months ending in July.
Greg Robb is a senior reporter for MarketWatch in Washington.
Jeffry Bartash is a reporter for MarketWatch in Washington.
WASHINGTON (MarketWatch) — New housing starts surged 10.5% in August to the highest level since spring, but the activity was driven by a sharp spike in apartment construction, government data showed.
Housing starts rose in August to an annualized rate of 598,000, compared with a revised 0.4% increase in July, the Commerce Department reported Tuesday. Economists surveyed by MarketWatch had expected housing starts to drop to 535,000 on a seasonally adjusted basis.
While the report seemed to point to an upturn in the weak U.S. housing market, most economists downplayed the better-than-expected number. They pointed out that data for multi-family starts, which surged 32.2% in August, is notoriously volatile and represents just a small portion of the housing market.
New construction of single-family homes, which account for 75% of the housing market, rose a much smaller 4.3% to an annualized rate of 438,000. Although it was the first increase in four months, construction of single-family homes is still 9.1% lower compared to year ago.
“While the volatile multi-family sector was responsible for the overall level of starts in August being higher than expected, the more important single-family component remains severely depressed,” noted chief economist Joshua Shapiro of MFR Inc.
Starts rose in all regions except the Northeast, where they slumped 24.3%. Big increases in the West (34.3%) and the Midwest (21.7%) offset that decline.
Data on housing starts has always been hard to measure and the government report is prone to sharp revisions. Complicating the picture was a federal tax credit for new home buyers that expired earlier this year. The credit caused home sales to spike in the spring, peaking at 679,000 in April, and then plunge over the summer, falling to as low as 539,00 in June.
Economists say the effects of the credit have largely dissipated, giving them a clearer view of the health of the housing market.
“We have found a bottom for housing activity. It’s at a pitiful level, but it should grow from here,” said senior U.S. economist Ellen Beeson Zentner of Bank of Toyko-Mitsubishi.
Permits for new construction, a more accurate gauge of home building, increased 1.8% in August to an annualized rate of 569,000.
Permits for condominiums and apartments rose 9.8%, but permits for single-family homes dipped 1.2% to an annual rate of 401,000. Single-family permits are viewed as one of the best indicators of future economic health and tend to draw the most attention of economists.
“This marks the fifth consecutive monthly drop and is indicative of deterioration in demand for new homes,” economist Michelle Meyer of Bank of America/Merrill Lynch said in an email.
The housing market plays a huge role in the U.S. It’s usually one of the first to weaken before a recession and one of the quickest to recover as growth resumes. The housing industry also has wide-ranging influence on the rest of the economy, since so many raw materials and finished goods are required to build homes and furnish them after sale. Yet the housing sector has struggled mightily since the housing bubble burst two years ago and pulled the economy down with it. Even though the recession has been officially declared over, the U.S. economy is growing very slowly and the unemployment rate stands near a 27-year high, dampening demand for new homes. See full story on the NBER determination that the U.S.’s recession ended last summer.
Because of sharp fluctuations in starts data, economists say it can take several months to detect new trends. In the past four months, housing starts have averaged an annualized 567,000, down from 587,000 in the four months ending in July.
Greg Robb is a senior reporter for MarketWatch in Washington.
Jeffry Bartash is a reporter for MarketWatch in Washington.
Monday, September 20, 2010
Tribute to David Joseph Rossi, Real Estate Leader, Mentor and Friend
On Friday September 17th, 2010 David Joseph Rossi passed away peacefully at Mount Sinai Hospital with his family by his side, after a valiant and courageous battle with leukemia. Today we remember our friend, David.
We at RE/MAX Professionals know David not just as a friend but as a business partner, a professional, and a confidante. David started his career in real estate in 1974. From the start he was known as a builder. David insisted on professionalism and ethics in all that he did. David was Broker of Record of NRS Royal Realty Inc. He grew this business in Central Etobicoke to be a market leader.
In 1993, David approached the Alexander family and merged his brokerage into RE/MAX Professionals in order to concentrate on his real estate sales and professional activities.
“John and I first met David in the early nineteen nineties. He was a highly respected Broker Owner and Industry advocate even at that time. When he made the decision to dedicate more of his time to the Industry and his own personal real estate business he approached John and I to purchase his NRS brokerage. He was determined that his sales people receive a positive benefit from the change in brands and that the new Broker/Owner’s would have the same value system as he did. David was a true gentleman throughout the transition and has remained a loyal and trusted advisor to all of us at the Kingsway office. Like so many, we are deeply shocked and saddened at his passing”.
John and Pamela Alexander
The 270 Kingsway office is still today a reflection of David’s strong leadership and dedication to professionalism and ethics.
Linda Sansom, General Manager and close friend recalls David:
"I met David at the conversion of his NRS office to RE/MAX Professionals. I was immediately impressed with his rapport with his sales associates. He worked tirelessly to make that transition as stress-free as possible, and ensure a positive outcome for them. Over the years, he has proven to be a trusted friend, whom I could count on for advice and whose opinion I valued without question. I will personally miss his humour, his kindness and his impact on our office and on the industry at large. My thoughts are with his family at home, and his family at work as we all come to terms with his loss."
Linda Sansom
David’s desire to improve the real estate industry lead him to be on many committees and boards that have truly changed the dynamics of our industry. Among David’s business accomplishments are the following:
FELLOW, Real Estate Institute of Canada (FRI)
Certified Real Estate Broker, National Association of Realtors, USA (CRB)
Certified Manager of Real Estate, Canada (CMR)
Chair, Ontario Real Estate Association (OREA), Ethics & Arbitration Hearing Panel (since 1987)
Founding Director, Real Estate Council of Ontario (RECO) since 1997 to 2010, Past Chair of the Board of Directors, (RECO) 2002-2003
Honorary Life Member of the Toronto Real Estate Board 2000
Presidential Award of Appreciation (TREB) 2007
RE/Max Hall of Fame Sales Award
RECO - Educational Services Agreement - Chair
RECO - Legislation & Regulations Committee
Arbitration Committee (TREB), Vice-Chair
Past Director, Etobicoke Chamber of Commerce
Past President, Markland Homes Association
Most recently David formed a real estate team with business partner Jane McKaig.
“Dave was a true gentleman and professional who cherished his family, life, his many business and personal relationships and was unwavering in his dedication to the Real Estate profession.
Dave has been an incredible friend, business partner, mentor and role model who I am honoured to have developed a wonderfully rewarding and successful business with. Nothing but the very best service, integrity, honesty, dedication and respect for all of our clients and friends has been, and always will be, the essence of what we built as a team.”
Jane McKaig
But more importantly David’s greatest accomplishment is that as a tremendous husband, father and friend. I believe his son Michael expresses David best:
“We will not see the likes of him again, and he will be sorely missed by all whose lives he touched. The sun will shine a little less brightly without Dave’s sweet smile.”
Michael Rossi
He leaves behind his beloved wife Aleksandra, dear and devoted children, Michael (Casey), Mathew, Joseph (Nicole) precious grandchildren, Nicholas and Ava, and faithful furry companion Toby. He will be missed by his brother Anthony (Barbara) of Virginia Beach, Va. and many nieces and nephews.
All associates and staff at RE/MAX Professionals wish to express our sincere sympathy to the Rossi family. Our thoughts and prayers are with them. Our fond memories of our dear friend David will last forever.
Friends may call at the Turner and Porter Yorke Chapel, 2357 Bloor St. W., at Windermere, east of the Jane subway, on Tuesday from 2-4 and 7-9 p.m. Funeral Mass will be held on Wednesday, September 22, 2010 at St. Clement Roman Catholic Church, 409 Markland Dr. at 10am. Donations in Dave’s memory may be made to Princess Margaret Hospital, Leukemia Research. Dave loved all flowers, so flowers will be appreciated.
Prepared by Darryl Mitchell,
Broker Manager,
RE/MAX Professionals Inc.,
270 The Kingsway, Etobicoke, Ontario.
We at RE/MAX Professionals know David not just as a friend but as a business partner, a professional, and a confidante. David started his career in real estate in 1974. From the start he was known as a builder. David insisted on professionalism and ethics in all that he did. David was Broker of Record of NRS Royal Realty Inc. He grew this business in Central Etobicoke to be a market leader.
In 1993, David approached the Alexander family and merged his brokerage into RE/MAX Professionals in order to concentrate on his real estate sales and professional activities.
“John and I first met David in the early nineteen nineties. He was a highly respected Broker Owner and Industry advocate even at that time. When he made the decision to dedicate more of his time to the Industry and his own personal real estate business he approached John and I to purchase his NRS brokerage. He was determined that his sales people receive a positive benefit from the change in brands and that the new Broker/Owner’s would have the same value system as he did. David was a true gentleman throughout the transition and has remained a loyal and trusted advisor to all of us at the Kingsway office. Like so many, we are deeply shocked and saddened at his passing”.
John and Pamela Alexander
The 270 Kingsway office is still today a reflection of David’s strong leadership and dedication to professionalism and ethics.
Linda Sansom, General Manager and close friend recalls David:
"I met David at the conversion of his NRS office to RE/MAX Professionals. I was immediately impressed with his rapport with his sales associates. He worked tirelessly to make that transition as stress-free as possible, and ensure a positive outcome for them. Over the years, he has proven to be a trusted friend, whom I could count on for advice and whose opinion I valued without question. I will personally miss his humour, his kindness and his impact on our office and on the industry at large. My thoughts are with his family at home, and his family at work as we all come to terms with his loss."
Linda Sansom
David’s desire to improve the real estate industry lead him to be on many committees and boards that have truly changed the dynamics of our industry. Among David’s business accomplishments are the following:
FELLOW, Real Estate Institute of Canada (FRI)
Certified Real Estate Broker, National Association of Realtors, USA (CRB)
Certified Manager of Real Estate, Canada (CMR)
Chair, Ontario Real Estate Association (OREA), Ethics & Arbitration Hearing Panel (since 1987)
Founding Director, Real Estate Council of Ontario (RECO) since 1997 to 2010, Past Chair of the Board of Directors, (RECO) 2002-2003
Honorary Life Member of the Toronto Real Estate Board 2000
Presidential Award of Appreciation (TREB) 2007
RE/Max Hall of Fame Sales Award
RECO - Educational Services Agreement - Chair
RECO - Legislation & Regulations Committee
Arbitration Committee (TREB), Vice-Chair
Past Director, Etobicoke Chamber of Commerce
Past President, Markland Homes Association
Most recently David formed a real estate team with business partner Jane McKaig.
“Dave was a true gentleman and professional who cherished his family, life, his many business and personal relationships and was unwavering in his dedication to the Real Estate profession.
Dave has been an incredible friend, business partner, mentor and role model who I am honoured to have developed a wonderfully rewarding and successful business with. Nothing but the very best service, integrity, honesty, dedication and respect for all of our clients and friends has been, and always will be, the essence of what we built as a team.”
Jane McKaig
But more importantly David’s greatest accomplishment is that as a tremendous husband, father and friend. I believe his son Michael expresses David best:
“We will not see the likes of him again, and he will be sorely missed by all whose lives he touched. The sun will shine a little less brightly without Dave’s sweet smile.”
Michael Rossi
He leaves behind his beloved wife Aleksandra, dear and devoted children, Michael (Casey), Mathew, Joseph (Nicole) precious grandchildren, Nicholas and Ava, and faithful furry companion Toby. He will be missed by his brother Anthony (Barbara) of Virginia Beach, Va. and many nieces and nephews.
All associates and staff at RE/MAX Professionals wish to express our sincere sympathy to the Rossi family. Our thoughts and prayers are with them. Our fond memories of our dear friend David will last forever.
Friends may call at the Turner and Porter Yorke Chapel, 2357 Bloor St. W., at Windermere, east of the Jane subway, on Tuesday from 2-4 and 7-9 p.m. Funeral Mass will be held on Wednesday, September 22, 2010 at St. Clement Roman Catholic Church, 409 Markland Dr. at 10am. Donations in Dave’s memory may be made to Princess Margaret Hospital, Leukemia Research. Dave loved all flowers, so flowers will be appreciated.
Prepared by Darryl Mitchell,
Broker Manager,
RE/MAX Professionals Inc.,
270 The Kingsway, Etobicoke, Ontario.
Wednesday, September 15, 2010
New Agent Processes at RE/MAX Professionals guarantee success
Linda Sansom, General Manager of RE/MAX Professionals Inc. in Mississauga and Etobicoke describes the process mapping techniques utilized at RE/MAX Professionals in administration of new agents startup. Making a difference at RE/MAX Professionals!
Tuesday, September 14, 2010
RE/MAX Professionals launches new Facebook page
Facebook now has RE/MAX Professionals Inc.! Check out the home page of RE/MAX Professionals and current activities and thoughts. Keeps you current on whats up! Enjoy!
"Dealers Choice" the Real Estate Game from RE/MAX
Do you sometimes feel the only one profiting from your real estate business is the "Dealer"? Check our RE/MAX to see how to beat the dealer every time! Enjoy!
Sunday, September 12, 2010
Has the Bubble Burst?
Commentary by Darryl Mitchell, Managing Broker, RE/MAX Professionals Inc. Brokerage
Interesting how, when the tide turns, everyone wants to get off of the boat. Panic sets in. Doubts begin to cloud an otherwise clear picture.
That is just what has been happening this summer as the press, both big and small have been shouting that the great real estate bubble has burst. Print, radio and television, internet and word of mouth, everyone had the impression that the market was collapsing victim of too many high priced sales in an overheated economy. Interesting how even some real estate franchise leaders felt the same. Look out, the sky is falling!
Funny, isn't it how a few changes such as government intervention in the tax system and interest rates, G20 summits, overly hot temperatures and simply fatigue can stall a market that appeared healthy and strong.
But what happens when the smoke clears? Is there a collapse, a steadying or reigniting of the market we all knew was too strong?
If we look at simple economics theory of supply and demand we may be able to predict the results. When I was taught supply and demand theory I was told that when the demand for a commodity drops, sales of that commodity will also drop and price will follow quickly behind. This summer we did see the drop in sales to the tune of over 20% in most markets. We did not see, with this great drop in volume, an equally strong drop in price. In fact, we saw prices for existing inventory go up! What is that all about?
Prices go up and sales volume go down? Well that is a sign of a valuable commodity that is in short supply. When the volume of a valued commodity becomes short in supply, the many buyers are willing to pay more for it and up goes the price!
Simple economics. Too simple perhaps for a market that is so diverse and complicated.
It does explain the phenomenon we are now experiencing. Ample amounts of mortgage availability, short supply due to fewer sellers willing and able to sell, and lots of willing buyers. Remember we have two governments, both the Provincial Liberals and Federal Conservatives chomping at the bit for an election within the next year. They will certainly continue to watch as the stimulus money begins to impact our economy more fully.
Perhaps we even have another round of pent up demand as buyers just were not in the market this summer, afraid of the so called overheated market, sitting on their down payments, waiting for a price collapse. They were listening all to closely as the popular press and the government and bank experts promoted a market in turmoil.
Well, fortunately no collapse in price has or will come. Not unless we hit another iceberg at least. There is just too much demand, too many willing and able buyers, too much available credit, and two governments that are unwilling to rock the boat. So jump out of the boat since not jumping may mean not participating in the healthiest real estate market we have known in years.
Interesting how, when the tide turns, everyone wants to get off of the boat. Panic sets in. Doubts begin to cloud an otherwise clear picture.
That is just what has been happening this summer as the press, both big and small have been shouting that the great real estate bubble has burst. Print, radio and television, internet and word of mouth, everyone had the impression that the market was collapsing victim of too many high priced sales in an overheated economy. Interesting how even some real estate franchise leaders felt the same. Look out, the sky is falling!
Funny, isn't it how a few changes such as government intervention in the tax system and interest rates, G20 summits, overly hot temperatures and simply fatigue can stall a market that appeared healthy and strong.
But what happens when the smoke clears? Is there a collapse, a steadying or reigniting of the market we all knew was too strong?
If we look at simple economics theory of supply and demand we may be able to predict the results. When I was taught supply and demand theory I was told that when the demand for a commodity drops, sales of that commodity will also drop and price will follow quickly behind. This summer we did see the drop in sales to the tune of over 20% in most markets. We did not see, with this great drop in volume, an equally strong drop in price. In fact, we saw prices for existing inventory go up! What is that all about?
Prices go up and sales volume go down? Well that is a sign of a valuable commodity that is in short supply. When the volume of a valued commodity becomes short in supply, the many buyers are willing to pay more for it and up goes the price!
Simple economics. Too simple perhaps for a market that is so diverse and complicated.
It does explain the phenomenon we are now experiencing. Ample amounts of mortgage availability, short supply due to fewer sellers willing and able to sell, and lots of willing buyers. Remember we have two governments, both the Provincial Liberals and Federal Conservatives chomping at the bit for an election within the next year. They will certainly continue to watch as the stimulus money begins to impact our economy more fully.
Perhaps we even have another round of pent up demand as buyers just were not in the market this summer, afraid of the so called overheated market, sitting on their down payments, waiting for a price collapse. They were listening all to closely as the popular press and the government and bank experts promoted a market in turmoil.
Well, fortunately no collapse in price has or will come. Not unless we hit another iceberg at least. There is just too much demand, too many willing and able buyers, too much available credit, and two governments that are unwilling to rock the boat. So jump out of the boat since not jumping may mean not participating in the healthiest real estate market we have known in years.
More Fun With RE/MAX
YouTube - Downline This video is a fun take on the numerous new business models in real estate that put other things ahead of the business of buying and selling homes. Enjoy! And remember "Nobody sells more homes than RE/MAX."
Thursday, September 9, 2010
Fun with RE/MAX
Another RE/MAX video with lots of truth an mirth. Enjoy! For more information on how RE/MAX can assist you to grow your business, give Darryl or Christine a call.
Metropolitan Monthly Monitors: Metro Resale Index August 2010
Markets Take the Plunge in July
Report by Robin Wiebe
The Conference Board of Canada, 3 pages, August 2010
Document Highlights:
•The emerging slowdown in resale markets worsened in July. Sales were below year-earlier levels in all 28 of our areas—and at least 10 per cent lower in 26.
•Slowing markets are also troubling homesellers. July listings were below year-earlier levels in 24 markets and below June volumes in 23.
•Market stances are also eroding. July’s sales-to-listings ratios were down on a year-over-year basis in 23 markets and down month-over-month in 13. Notwithstanding these developments, only four markets posted a “buyers” stance in July.
•Values are bearing up. Price growth slowed between June and July in only nine markets. Softening markets will, however, increasingly weigh on prices.
To see the entire article follow the link above.
Report by Robin Wiebe
The Conference Board of Canada, 3 pages, August 2010
Document Highlights:
•The emerging slowdown in resale markets worsened in July. Sales were below year-earlier levels in all 28 of our areas—and at least 10 per cent lower in 26.
•Slowing markets are also troubling homesellers. July listings were below year-earlier levels in 24 markets and below June volumes in 23.
•Market stances are also eroding. July’s sales-to-listings ratios were down on a year-over-year basis in 23 markets and down month-over-month in 13. Notwithstanding these developments, only four markets posted a “buyers” stance in July.
•Values are bearing up. Price growth slowed between June and July in only nine markets. Softening markets will, however, increasingly weigh on prices.
To see the entire article follow the link above.
Is this the Beginning of a Free Fall for the Housing Market?
Mario Lefebvre
Director
Centre for Municipal Studies
September 07, 2010
Mario Lefebvre
Director
Centre for Municipal Studies
The housing market has lost its lustre. No doubt about it. However, this will not lead to a free fall for Canada’s housing market. This country will not experience home price declines to the tune of what we have witnessed in the United States over the past few years.
In all likelihood, the next few months will not be the best in history for Canada’s resale and new housing markets. Economic growth is slowing, the harmonized sales tax (HST) came into effect in Ontario and British Columbia and consumer confidence is being challenged by the potential negative impacts on the global economic outlook of the European debt crisis and a jobless recovery in the United States. These factors have already put a dent on housing demand and will continue to do so in the coming months.
For the entire article follow the link.
Director
Centre for Municipal Studies
September 07, 2010
Mario Lefebvre
Director
Centre for Municipal Studies
The housing market has lost its lustre. No doubt about it. However, this will not lead to a free fall for Canada’s housing market. This country will not experience home price declines to the tune of what we have witnessed in the United States over the past few years.
In all likelihood, the next few months will not be the best in history for Canada’s resale and new housing markets. Economic growth is slowing, the harmonized sales tax (HST) came into effect in Ontario and British Columbia and consumer confidence is being challenged by the potential negative impacts on the global economic outlook of the European debt crisis and a jobless recovery in the United States. These factors have already put a dent on housing demand and will continue to do so in the coming months.
For the entire article follow the link.
Wednesday, September 8, 2010
Bank of Canada raises interest rates once again
Follow the Bank of Canada rate increase news on the Globe and Mail web site. Interest rates hiked one quarter of one percentage point. Interesting to note that there are actual mortgage rates as low as 2.5% as of yesterday. So the rate hike will have almost no impact on the market.
Toronto August Sales and New Listings Down,
Toronto Monthly report shows that August 2010 sales, although lower in volume by 22% over the previous year, are higher in price by 6%. When volume drops as large as this, but pricce continues to go up, we have a very strong market.
Tuesday, September 7, 2010
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