Market News - Real Estate Reports

It's always important for those involved in the real estate industry to be on top of market conditions, and I am no different. Knowing what is happening in the market is critical to me successfully advising you as your agent. I'm more than happy to publish this market news section to promote keeping my clients informed.

Tuesday July 19th/2011 - June Was a Good Month for Canadian Home Sales

This past June, home sales across Canada saw a 2.6 percent increase. According to the Canadian Real Estate Association, or CREA, this is the first increase in the last three months. It is even more meaningful when the fact that May actually saw a one percent slide is taken into effect. Or that April saw a decrease of 4.4 percent.

The increase in sales at the end of 2011’s second quarter helps to increase consumer and business confidence and gives an incentive to hire more people. The Bank of Canada appears to be inclined not to raise interest rates, and that is also a plus, increasing the likelihood that home sales will continue to move in a positive direction in the latter half of 2011.

If you take the entire second quarter and compare it to the first, numbers show that there was roughly a five percent decline in that second quarter. CREA is expecting that sales for the latter part of the year will be fairly flat and the year will end with about a 1.3 percent decrease in sales over 2010. Then the market is expected to rebound, with 2012 seeing an increase in sales of 2.5 percent.

Housing prices continued to rise in the second quarter. The average price of a home nationwide was at $372,700 this past May, an 8.7 percent increase over the same month in 2010. CREA believes that 2011 will end with a four percent price increase, and that 2012 will see an increase of less than one percent.

Friday July 8th/2011 - Residential Real Estate Market in Edmonton Has Strong June Sales

The residential real estate market in Edmonton saw healthy sales this past June. At the same time, housing prices were below what they were in June of 2010. The MLS sales figures showed $584 million in sales for the month, which is a 7.6 percent increase from the dollar figure from June of last year. These numbers are courtesy of the Realtors Association of Edmonton.

This June saw 1,768 sales in the residential market, and 3,260 properties being listed. That makes the sales to listing ratio 54 percent. In June of 2010, there were 1,619 sales and 3,339 properties listed, creating a 48 percent sales to listing ratio. The average price per home this June came in at $330,297, down one half of a percent compared to June of 2010.

Breaking it down into categories, single family sales were up 15.1 percent, with 1,165 homes changing hands this year compared to the 1,012 that did last June. Average selling price came in at $379,409 this June, a 2.86 percent decrease over the same month last year. Condo sales came out almost the same, with this June showing 482 sales and June of 2010 bringing in 486. But the average selling price was more than five percent less than last year, coming in at $231,852.

Dan Sumner, who is an economist with ATB Financial, doesn’t believe there will be a correction, either up or down for at least the next few months. Alberta has a strong economy at the moment, and an increasing work force which ups demand. But there is the possibility that mortgage interest rates will rise, which may offset those facts.

Tuesday June 28th/2011 - Singles Can Still Get Into the Housing Market

The new mortgage rules that took effect on March 18th are making it a bit more difficult to qualify for that loan, particularly if you are single. It is much harder to qualify with one income rather than two. And, if that person qualifies, it is more than likely for a condo purchase. In that case there are condo fees as well as taxes to be added into the equation.

Prequalifying helps, particularly if you get a guaranteed interest rate held. Since the 35 year amortization period is no longer available, the max is now 30 years, which means payments will be higher. A bigger down payment may be needed to both qualify and meet those payments.

So how does a single home buyer cope with what seem like daunting requirements? One idea is to get a co-signer, perhaps a parent or another family member to help you qualify for the mortgage. That would mean the co-signer would be responsible for the mortgage as well. Another idea would be for parents to contribute towards the down payment if it is something they can afford.

But if either of those ideas doesn’t apply in your case there are other options. Of first importance is putting together a plan to save money and build up that down payment. Contributing to an RRSP is one way to not only get a tax break but build up funds that may be used for a down payment. First-time buyers are allowed to take up to $25,000 from an RRSP to put towards a home purchase.

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