There is something new and cool for you real estate geeks out there. Its called HouseBlogs.net. It is a collection of blogs dedicated to pictures of peoples homes. Sites range from rebuilds and redecorating, to complete bottom to top build-ups. Look in on what others do to get great ideas. The Globe and Mail also has a great article on this site.
With Calgary real estate still soaring, places like Airdrie, which are now just a part of northern Calgary, are also feeling the rise in prices.
According to statistics released by the Calgary Real Estate Board, predictions for a slow start in 2007 for the local real estate market were blown right out of the water. There were 125 MLS® sales last month, well up from 69 in December and way up from the 59 sales posted in January 2006."Despite predictions the market would cool down after record sales in 2006, we set a record not only for number of sales in the month of January, but a new all-time high for one month," Re/Max sales associate Alan Tennant said.
In Calgary the average residential sale price in January climbed to $375,646 and in Airdrie the average sale price moved up to around $312,000. There were 56 new home construction permits issued last month, up from 45 in December, but down from 72 a year ago, the record number of single family home starts for the month of January.Currently there are 145 MLS® listings on the market in Airdrie, down significantly from 230 in December, but up nicely from 34 at this point a year ago. "Realtors® are bringing new listings on the MLS® at a strong pace," Tennant said, "which is helping to meet the record demand in what is traditionally a slower part of the year."
From the Airdrie Echo
Tuesday, February 27, 2007
Monday, February 19, 2007
What Will Happen With Real Estate In 2007?
Luigi Frascati has an in depth economic analysis on what will happen with real estate in Canada, the US and the World in 2007. You should really check out his blog archive at http://wwwrealestatechronicle.blogspot.com/, he has some great things to say. Read on for his latest post.
Real Estate Outlook 2007: The Great American Iced Lemonade!
What do California sunshine, the citrus industry, an excess surplus of ice cubes and Nancy Pelosi all add up to? Find out ...
_______________________________________
Did anyone out there ever coined the phrase ‘The New Era Of American Socialism' yet?
Well alright, that is unfair. After all Real Estate was sliding downwards even before the Democrats took over the House and Senate, and Nancy Pelosi became the Speaker to be.
However, it can be safely stated that the recent mid-term elections have not exactly shed a ray of hope on the already faltering housing prices. So now, in light of the entirely new and revolutionary political landscape in Capitol Hill, what are mundane folks like you and I supposed to do?
Sure, the social agenda of the Democratic Party in general, and the personal ‘socialist' agenda of Congresswoman and Speaker of the House Nancy Pelosi (D-Cal.) in particular take somehow the breeze out of the investment world, both as it relates to Real Estate and the Stock Market. But when it comes to Real Estate, however, there are some positive notes worth mentioning.
Housing supply is produced using land, labour, and various inputs such as electricity and building materials. The quantity of new supply is determined by the cost of these inputs, the price of the existing stock of houses, and the technology of production. Essentially, the production of real estate output depends on the accumulation of capital, which requires a constant supply of labour force that can conserve and add value to inputs and capital assets, thus creating a higher value.
The rationale behind this is that labour adds value by satisfying demand through production, since when people work and acquire income they tend to invest it, and the more people that work and acquire income the more people that tend to invest it. Therefore, there is a correlation between capital and employment in real estate or, if you will, between income and labour. An increase in levels of consumption sets forth an increase in prices caused by a corresponding increase in demand, in itself generated by a commensurate increase in the income-employment factor.
It follows, therefore, that growth is derived by the equilibrium of capital and investment with labour and employment. And since, furthermore, production is in direct function of consumer-spending which increases as unemployment falls, it follows that capital accumulation increases as employment rises and capital accumulation decreases as employment falls.
Therefore, seen from this perspective, the Democratic agenda of both increasing minimum wages and put people at work through more direct governmental intervention than the Republicans otherwise would like to see, finds in fact its long-term benefits in Real Estate. It is a statement of fact that, in retrospective, many workers in North America have missed out and are missing out on the rewards of globalization, so trumpeted about by both the present Chairman of the Federal Reserve System, Prof. Bernanke, as well as the former Chairman, ‘Maestro' Alan Greenspan.
Rich countries have democratic governments, so continued support for the globalization process will depend in large part on how prosperous the average worker feels. Yet in the United States real wages have been flat or even falling these past few years while, at the same time, capitalists and large corporations have never had it so good. In America specifically, profits as a share of GDP are at an all-time high of about 15.5 percent, and Corporate America has increased its share of national income from seven percent in 2001 to thirteen percent this year.
In fact the primary culprit and cause of the slowdown in Real Estate is the ratio between wages and real estate market values. This ratio is entirely skewed to values. Whereas market values in metropolitan areas have appreciated an average of fifteen percent per year through 2005 inclusive - or a total of seventy-five percent since 2000 - salaries have increased an average four percent per annum - or twenty percent total. There is, therefore, a fifty-five percent gap, which accounts for the problem buyers are facing today when it comes to go to the bank and qualifying for a loan. In this sense, therefore, a redistribution of income from capital to labour is now due.
The flip side of the Democratic agenda, however, is that it is going to take a long time for government economic intervention to get a foothold in the economy, in order to make workers earn income sufficient enough so that they can go to the bank, get a loan and go shopping for real estate. Thus, it is going to take equally long for demand to jump and prices to increase as well.
This is so because demand is in direct function of underlying personal income. An increase in personal income will encourage investment to a higher degree, which, in turn, will spur demand causing a proximate levitation of prices and subsequent economic expansion.
A second but equally important flip side is how foreign investors and debt-holding nations are going to view this sudden shift to the left of the American behemoth, and whether emerging economies such as India and China will continue to finance America's spending habits. Confidence in the U.S. Treasury is out of the question, but how convenient is it going to be for foreigners to continue investing in an America tilted definitely to the left?
Many economists have long been expecting America's widening current account deficit to cause a financial meltdown in the Dollar, and the main reason as to why this has not happened yet is that emerging economies have been happy to finance the deficit. In 2005 India, China, South Korea and Japan (not an emerging economy but a very important debt-holder nonetheless) ran a combined current account surplus of about USD 2 trillions, a large chunk of which was reinvested in American Treasury securities. It is all to be seen, however, whether the Asian Tigers will continue to find the convenience in investing their foreign cash reserves in American securities or if instead they are going to withdraw their support of the American capitalistic system, especially if such system will be perceived increasingly as shifting much too much to the left.
By purchasing Dollar assets the Asian economies and Japan are subsidizing American consumers, encouraging too little saving on our part and too much spending. But should they decide not to buy anymore and in fact to cash in, the American economy is likely to suffer a real hard landing.
This is the reason why it is important to monitor and understand how developments in the world economies affect the balance between domestic demand and supply. Exchange rate movements tell something about economic developments that may be having a direct impact on aggregate demand.
By monitoring the fluctuations of the Dollar in the forthcoming months it will be possible, therefore, to anticipate whether the Central Bank will ease or tighten monetary policy by stimulating the economy through lower interest rates or by reducing the stimulus through higher interest rates. And, therefore, it will be possible to predict the impact that anticipated shifts in interest rates will have on demand for domestic real capital assets. Clearly, in the eventuality that demand for U.S. Treasury bonds will abate, the Federal Reserve will have no other choice under the present circumstances but to raise interest rates, so as to continue to attract foreign capitals and thus contributing to a further slowdown in the domestic housing markets.
Should a forced rate increase actually take place in 2007 to maintain the momentum with foreign debt-holders, that would really fly in the face of all those analysts and commentators who have assumed that a vote for the Democrats would contribute to a rate settling.
Certainly we are entering into a period of financial uncertainty, all the more remarked by what promises to be an economic - if not political - stalemate between a conservative White House and a liberal Congress. And should this stalemate translate into higher interest rates, the soft landing that Chairman Bernanke was mentioning only this past July may very well become in 2007 a distant, wishful dream.
Luigi Frascati
Real Estate Outlook 2007: The Great American Iced Lemonade!
What do California sunshine, the citrus industry, an excess surplus of ice cubes and Nancy Pelosi all add up to? Find out ...
_______________________________________
Did anyone out there ever coined the phrase ‘The New Era Of American Socialism' yet?
Well alright, that is unfair. After all Real Estate was sliding downwards even before the Democrats took over the House and Senate, and Nancy Pelosi became the Speaker to be.
However, it can be safely stated that the recent mid-term elections have not exactly shed a ray of hope on the already faltering housing prices. So now, in light of the entirely new and revolutionary political landscape in Capitol Hill, what are mundane folks like you and I supposed to do?
Sure, the social agenda of the Democratic Party in general, and the personal ‘socialist' agenda of Congresswoman and Speaker of the House Nancy Pelosi (D-Cal.) in particular take somehow the breeze out of the investment world, both as it relates to Real Estate and the Stock Market. But when it comes to Real Estate, however, there are some positive notes worth mentioning.
Housing supply is produced using land, labour, and various inputs such as electricity and building materials. The quantity of new supply is determined by the cost of these inputs, the price of the existing stock of houses, and the technology of production. Essentially, the production of real estate output depends on the accumulation of capital, which requires a constant supply of labour force that can conserve and add value to inputs and capital assets, thus creating a higher value.
The rationale behind this is that labour adds value by satisfying demand through production, since when people work and acquire income they tend to invest it, and the more people that work and acquire income the more people that tend to invest it. Therefore, there is a correlation between capital and employment in real estate or, if you will, between income and labour. An increase in levels of consumption sets forth an increase in prices caused by a corresponding increase in demand, in itself generated by a commensurate increase in the income-employment factor.
It follows, therefore, that growth is derived by the equilibrium of capital and investment with labour and employment. And since, furthermore, production is in direct function of consumer-spending which increases as unemployment falls, it follows that capital accumulation increases as employment rises and capital accumulation decreases as employment falls.
Therefore, seen from this perspective, the Democratic agenda of both increasing minimum wages and put people at work through more direct governmental intervention than the Republicans otherwise would like to see, finds in fact its long-term benefits in Real Estate. It is a statement of fact that, in retrospective, many workers in North America have missed out and are missing out on the rewards of globalization, so trumpeted about by both the present Chairman of the Federal Reserve System, Prof. Bernanke, as well as the former Chairman, ‘Maestro' Alan Greenspan.
Rich countries have democratic governments, so continued support for the globalization process will depend in large part on how prosperous the average worker feels. Yet in the United States real wages have been flat or even falling these past few years while, at the same time, capitalists and large corporations have never had it so good. In America specifically, profits as a share of GDP are at an all-time high of about 15.5 percent, and Corporate America has increased its share of national income from seven percent in 2001 to thirteen percent this year.
In fact the primary culprit and cause of the slowdown in Real Estate is the ratio between wages and real estate market values. This ratio is entirely skewed to values. Whereas market values in metropolitan areas have appreciated an average of fifteen percent per year through 2005 inclusive - or a total of seventy-five percent since 2000 - salaries have increased an average four percent per annum - or twenty percent total. There is, therefore, a fifty-five percent gap, which accounts for the problem buyers are facing today when it comes to go to the bank and qualifying for a loan. In this sense, therefore, a redistribution of income from capital to labour is now due.
The flip side of the Democratic agenda, however, is that it is going to take a long time for government economic intervention to get a foothold in the economy, in order to make workers earn income sufficient enough so that they can go to the bank, get a loan and go shopping for real estate. Thus, it is going to take equally long for demand to jump and prices to increase as well.
This is so because demand is in direct function of underlying personal income. An increase in personal income will encourage investment to a higher degree, which, in turn, will spur demand causing a proximate levitation of prices and subsequent economic expansion.
A second but equally important flip side is how foreign investors and debt-holding nations are going to view this sudden shift to the left of the American behemoth, and whether emerging economies such as India and China will continue to finance America's spending habits. Confidence in the U.S. Treasury is out of the question, but how convenient is it going to be for foreigners to continue investing in an America tilted definitely to the left?
Many economists have long been expecting America's widening current account deficit to cause a financial meltdown in the Dollar, and the main reason as to why this has not happened yet is that emerging economies have been happy to finance the deficit. In 2005 India, China, South Korea and Japan (not an emerging economy but a very important debt-holder nonetheless) ran a combined current account surplus of about USD 2 trillions, a large chunk of which was reinvested in American Treasury securities. It is all to be seen, however, whether the Asian Tigers will continue to find the convenience in investing their foreign cash reserves in American securities or if instead they are going to withdraw their support of the American capitalistic system, especially if such system will be perceived increasingly as shifting much too much to the left.
By purchasing Dollar assets the Asian economies and Japan are subsidizing American consumers, encouraging too little saving on our part and too much spending. But should they decide not to buy anymore and in fact to cash in, the American economy is likely to suffer a real hard landing.
This is the reason why it is important to monitor and understand how developments in the world economies affect the balance between domestic demand and supply. Exchange rate movements tell something about economic developments that may be having a direct impact on aggregate demand.
By monitoring the fluctuations of the Dollar in the forthcoming months it will be possible, therefore, to anticipate whether the Central Bank will ease or tighten monetary policy by stimulating the economy through lower interest rates or by reducing the stimulus through higher interest rates. And, therefore, it will be possible to predict the impact that anticipated shifts in interest rates will have on demand for domestic real capital assets. Clearly, in the eventuality that demand for U.S. Treasury bonds will abate, the Federal Reserve will have no other choice under the present circumstances but to raise interest rates, so as to continue to attract foreign capitals and thus contributing to a further slowdown in the domestic housing markets.
Should a forced rate increase actually take place in 2007 to maintain the momentum with foreign debt-holders, that would really fly in the face of all those analysts and commentators who have assumed that a vote for the Democrats would contribute to a rate settling.
Certainly we are entering into a period of financial uncertainty, all the more remarked by what promises to be an economic - if not political - stalemate between a conservative White House and a liberal Congress. And should this stalemate translate into higher interest rates, the soft landing that Chairman Bernanke was mentioning only this past July may very well become in 2007 a distant, wishful dream.
Luigi Frascati
Labels:
Canada,
Real Estate,
World Economy
Tuesday, February 13, 2007
New Real Estate Website In UK - This Site Has A Lot Going On
Zoomf.com is a new real estate web portal in the UK based on web 2.0 technology. I checked out the site, and wow, there is a lot going on. The site provide statistics to many different sections of property information, most of which I have no idea about.
Of the pages I was able to look at the most interesting was a list of average prices for a postal code sorted by home type, and also listed by Google Map. This web site obviously has many useful applications, but is currently limited to the London area.
Of the pages I was able to look at the most interesting was a list of average prices for a postal code sorted by home type, and also listed by Google Map. This web site obviously has many useful applications, but is currently limited to the London area.
Labels:
Canada,
Real Estate,
UK,
Website
Friday, February 02, 2007
Canadian Federal Government To Sell $1.5 Billion In Real Estate
The government of Canada has decided to sell off about $1.5 billion of the current real estate portfolio. Most of the properties are in the Ottawa region and consist of office buildings. In their fool proof scheme the feds plan to sell the properties, have the buyers fix the properties to current standards (which the government was unwilling to do), and lease the properties back on 25 year leases. Seem like a waste of money to me.
Historic Banff Mansion on Market for $9.9 million
A historic Banff property, built in the late 19th Century is being put up for sale. The property has many of the luxuries of a modern home including: heated floors, 3 car garage, 10 person hot tub, and the price includes all the furnishings and paintings.
Historic Banff Mansion on Market for $9.9 million
A historic Banff property, built in the late 19th Century is being put up for sale. The property has many of the luxuries of a modern home including: heated floors, 3 car garage, 10 person hot tub, and the price includes all the furnishings and paintings.
Labels:
Canada,
Free Listings,
Real Estate
Sunday, January 28, 2007
Real Estate - The Easiest Way To Make Money
It sounds so simple. Buy a property, sit on it until the market climbs 15-20 percent and sell for a profit. A study by real estate heavy weight Re/Max has published a report that since 1981 real estate has been a quality investment that has risen in value. Sounds simple now, but in 1985 you might have got some strange looks.
Along with real estate come the self help gurus. These are the people who want to help you get rich, or at least get not poor. The latest Canadian marketing a 'real estate for dummies' book is Douglas Idugboe, originally from Kenya. The Calgary sun has an article on how Idugboe plans to help others, and his road to publishing a book. Read below for the full article.
Calgary Sun Article
By PAUL JACKSON, CALGARY SUN
Now impeccably dressed, Douglas Idugboe recalls how he came to Canada in 1999 as a refugee from Nigeria with just $5 to his name and immediately got a job as a factory worker in Montreal.
"I needed the money," he says, "and I believe any job is better than none."
Today, Idugboe is a successful real-estate investor, makes a second living as a financial coach and marketing consultant, and has a bestselling book on sale in stores across the nation.
His book, Credit Miracle for Canadians (QuickSuccess Press, $24.95), explains how to build or repair your credit rating, get out of debt and "make banks beg to loan you money."
Idugboe, who bubbles with enthusiasm for the educational, employment and entrepreneurial opportunities available in Canada, got the idea for the book back in Montreal when he first applied for a bank loan.
"I didn't understand how the credit system worked, but I knew you needed money to get going, so I applied for a loan and was turned down because I didn't have a credit rating and wasn't established."
With that, Idugboe started to research the credit-granting system in North America.
Soon he was not only getting loans to invest in real estate, but advising others how to get a positive credit rating, too.
"I had to start turning clients away from my courses, because they were so popular. Feeling sorry I hadn't the time to coach everyone who needed advice and help, I decided the best way to get the information into their hands was to write a book."
His work has been praised by the likes of Fabio Marciano, author of The Secrets of Wealth and Paul Counter, also an author of his own work, Don't Borrow Money Until You Read this Book.
Idugboe started to write the 260-page work in 2003, but several times got distracted because not only was he deluged in research, but he had his family to support, consisting of wife Francisca, and son, Uwa, now 4.
His book explains the technicalities of the credit granting system in North America in simple jargon and also offers financial tips.
"The first rule of successful financial management is don't spend more than you earn. No one needs to have unnecessary or unproductive debt, but if you do, you will likely never turn your aspirations into reality."
Idugboe stresses he invests in real estate not to make money with "quick flips" but to generate a long-term cash flow to build his business interests and support his lifestyle.
"Many Canadians and Americans think financial difficulty is due to lack of money. That's not their real problem. Their real problem is a lack of financial education."
That's the backbone of his book and his website www.CreditMiracle.com.
"My third basic rule for financial security and success would be identify where you want to be and make a definite plan of how to get there and stick to it."
That is surely what Idugboe had to do in working himself up so quickly from a factory floor to a real estate investor and author.
"It certainly wasn't easy researching, writing and getting a book published and distributed nationwide.
"So many people try, but with no publishing record it's hard to find a distributor. I wanted to have a blockbuster, not just sell it on Amazon.com."
Persistence paid off when, after knocking on many doors, he was lucky in finding White Knight Book Distributors in Toronto.
"The company president, Bill Belfontaine, read the book and uttered one word, 'Wow!' and that was it."
Says Idugboe with a big smile, "Canada is the greatest country in the world. It's like a dream come true. Anyone can be anything they want here, they just have to work at it."
Along with real estate come the self help gurus. These are the people who want to help you get rich, or at least get not poor. The latest Canadian marketing a 'real estate for dummies' book is Douglas Idugboe, originally from Kenya. The Calgary sun has an article on how Idugboe plans to help others, and his road to publishing a book. Read below for the full article.
Calgary Sun Article
By PAUL JACKSON, CALGARY SUN
Now impeccably dressed, Douglas Idugboe recalls how he came to Canada in 1999 as a refugee from Nigeria with just $5 to his name and immediately got a job as a factory worker in Montreal.
"I needed the money," he says, "and I believe any job is better than none."
Today, Idugboe is a successful real-estate investor, makes a second living as a financial coach and marketing consultant, and has a bestselling book on sale in stores across the nation.
His book, Credit Miracle for Canadians (QuickSuccess Press, $24.95), explains how to build or repair your credit rating, get out of debt and "make banks beg to loan you money."
Idugboe, who bubbles with enthusiasm for the educational, employment and entrepreneurial opportunities available in Canada, got the idea for the book back in Montreal when he first applied for a bank loan.
"I didn't understand how the credit system worked, but I knew you needed money to get going, so I applied for a loan and was turned down because I didn't have a credit rating and wasn't established."
With that, Idugboe started to research the credit-granting system in North America.
Soon he was not only getting loans to invest in real estate, but advising others how to get a positive credit rating, too.
"I had to start turning clients away from my courses, because they were so popular. Feeling sorry I hadn't the time to coach everyone who needed advice and help, I decided the best way to get the information into their hands was to write a book."
His work has been praised by the likes of Fabio Marciano, author of The Secrets of Wealth and Paul Counter, also an author of his own work, Don't Borrow Money Until You Read this Book.
Idugboe started to write the 260-page work in 2003, but several times got distracted because not only was he deluged in research, but he had his family to support, consisting of wife Francisca, and son, Uwa, now 4.
His book explains the technicalities of the credit granting system in North America in simple jargon and also offers financial tips.
"The first rule of successful financial management is don't spend more than you earn. No one needs to have unnecessary or unproductive debt, but if you do, you will likely never turn your aspirations into reality."
Idugboe stresses he invests in real estate not to make money with "quick flips" but to generate a long-term cash flow to build his business interests and support his lifestyle.
"Many Canadians and Americans think financial difficulty is due to lack of money. That's not their real problem. Their real problem is a lack of financial education."
That's the backbone of his book and his website www.CreditMiracle.com.
"My third basic rule for financial security and success would be identify where you want to be and make a definite plan of how to get there and stick to it."
That is surely what Idugboe had to do in working himself up so quickly from a factory floor to a real estate investor and author.
"It certainly wasn't easy researching, writing and getting a book published and distributed nationwide.
"So many people try, but with no publishing record it's hard to find a distributor. I wanted to have a blockbuster, not just sell it on Amazon.com."
Persistence paid off when, after knocking on many doors, he was lucky in finding White Knight Book Distributors in Toronto.
"The company president, Bill Belfontaine, read the book and uttered one word, 'Wow!' and that was it."
Says Idugboe with a big smile, "Canada is the greatest country in the world. It's like a dream come true. Anyone can be anything they want here, they just have to work at it."
Sunday, January 21, 2007
British Columbia Real Estate Sets New Records
British Columbia real estate set new records in 2006 with sales through the MLS system of 37.8 Billion dollars. Here is another look at it: $37,800,000,000. Yeh, that's a lot of money.
The greatest gains were made in Northern B.C., which includes Prince George and Prince Rupert. There sales were up nine per cent, to 5,609 from 5,130, with the value of sales up 31 per cent. The full article is available at the Vancouver Sun, or read below.
Pickton. That name is now like celebrity in B.C. The infamous pig farmer made millions in real estate deals, and, well, we will soon know the rest of the story. The Pickton family's Port Coquitlam farm, originally staked out in the early 1900's, was parceled off in the 1990's for massive profit. That is how the real estate game is played. Sit on your investment for 3 generations and sell for profit. Start now and your great grand children will love you.
Article.
Finally we have Jerry Seinfeld who tried to get out of paying his real estate agent. Things did not go in Jerry's favor, and now he has to pay $100,000 to an agent who did not even show him the property he requested to view. WHAT!
Article.
Vancouver Sun Article
Higher prices fuel real estate record
Fiona Anderson
Vancouver Sun
Friday, January 19, 2007
The value of residential real estate sales in B.C. reached a record $37.8 billion in 2006, up seven per cent from 2005, fueled by higher house prices at a time when the number of sales dropped.
In 2006, B.C. realtors sold just under 97,000 homes through the Canadian Real Estate Association's marketing network, the Multiple Listing Service, a nine-per-cent drop from 2005's record of 106,000. But an 18-per-cent increase in the average price of a home in the province -- from $332,137 to $390,760 -- pushed the value of the sales to the record.
The British Columbia Real Estate Association, which represents the province's 12 regional real estate boards, expects the number of sales to continue to slow, dropping to 93,600, or by three per cent, in 2007. Prices, however, are expected to keep heading upward, albeit at a slower pace.
"The market is certainly trending toward more balanced conditions," BCREA's chief economist Cameron Muir said in an interview. "Underpinning the market today are some pretty solid fundamentals. Employment growth is strong, we have unemployment near record lows, we have wages in many sectors growing several times the rate of inflation, and we have fairly good migration numbers to the province."
At the same time, mortgage rates are expected to remain flat in 2007, Muir said.
"The one thing that's not as positive is home prices," he said. "Some home-buyers are feeling the squeeze, and as a result we're in a price-led affordability squeeze. As a result, some potential home-buyers are finding themselves unable to afford to buy the home they desire."
While the slowdown in activity began last July, the number of sales in 2006 was still the second-highest on record, behind only a record-breaking 2005.
"So there is still a high number of sales from a historical perspective. It's just we're no longer ramping up to ever-new records of home sales in the province," Muir said.
The most active market in 2006 continued to be Greater Vancouver, with 36,479 sales worth $18.6 billion, compared to 42,222 sales worth $18 billion in 2005. That's a 13.6-per-cent drop in volume, yet a 3.4-per-cent increase in value.
The slowest market was Powell River, which had only 293 sales, down 30 per cent from the 421 sales in 2005. The value of those sales were also down, from $70.1 million in 2005 to $60 million, a 15-per-cent drop.
The greatest increase in activity was in Northern B.C., which includes Prince George and Prince Rupert. There sales were up nine per cent, to 5,609 from 5,130, with the value of sales up 31 per cent.
The greatest gains were made in Northern B.C., which includes Prince George and Prince Rupert. There sales were up nine per cent, to 5,609 from 5,130, with the value of sales up 31 per cent. The full article is available at the Vancouver Sun, or read below.
Pickton. That name is now like celebrity in B.C. The infamous pig farmer made millions in real estate deals, and, well, we will soon know the rest of the story. The Pickton family's Port Coquitlam farm, originally staked out in the early 1900's, was parceled off in the 1990's for massive profit. That is how the real estate game is played. Sit on your investment for 3 generations and sell for profit. Start now and your great grand children will love you.
Article.
Finally we have Jerry Seinfeld who tried to get out of paying his real estate agent. Things did not go in Jerry's favor, and now he has to pay $100,000 to an agent who did not even show him the property he requested to view. WHAT!
Article.
Vancouver Sun Article
Higher prices fuel real estate record
Fiona Anderson
Vancouver Sun
Friday, January 19, 2007
The value of residential real estate sales in B.C. reached a record $37.8 billion in 2006, up seven per cent from 2005, fueled by higher house prices at a time when the number of sales dropped.
In 2006, B.C. realtors sold just under 97,000 homes through the Canadian Real Estate Association's marketing network, the Multiple Listing Service, a nine-per-cent drop from 2005's record of 106,000. But an 18-per-cent increase in the average price of a home in the province -- from $332,137 to $390,760 -- pushed the value of the sales to the record.
The British Columbia Real Estate Association, which represents the province's 12 regional real estate boards, expects the number of sales to continue to slow, dropping to 93,600, or by three per cent, in 2007. Prices, however, are expected to keep heading upward, albeit at a slower pace.
"The market is certainly trending toward more balanced conditions," BCREA's chief economist Cameron Muir said in an interview. "Underpinning the market today are some pretty solid fundamentals. Employment growth is strong, we have unemployment near record lows, we have wages in many sectors growing several times the rate of inflation, and we have fairly good migration numbers to the province."
At the same time, mortgage rates are expected to remain flat in 2007, Muir said.
"The one thing that's not as positive is home prices," he said. "Some home-buyers are feeling the squeeze, and as a result we're in a price-led affordability squeeze. As a result, some potential home-buyers are finding themselves unable to afford to buy the home they desire."
While the slowdown in activity began last July, the number of sales in 2006 was still the second-highest on record, behind only a record-breaking 2005.
"So there is still a high number of sales from a historical perspective. It's just we're no longer ramping up to ever-new records of home sales in the province," Muir said.
The most active market in 2006 continued to be Greater Vancouver, with 36,479 sales worth $18.6 billion, compared to 42,222 sales worth $18 billion in 2005. That's a 13.6-per-cent drop in volume, yet a 3.4-per-cent increase in value.
The slowest market was Powell River, which had only 293 sales, down 30 per cent from the 421 sales in 2005. The value of those sales were also down, from $70.1 million in 2005 to $60 million, a 15-per-cent drop.
The greatest increase in activity was in Northern B.C., which includes Prince George and Prince Rupert. There sales were up nine per cent, to 5,609 from 5,130, with the value of sales up 31 per cent.
Sunday, January 14, 2007
Winnipeg Real Estate Has A New Boss Of Realtors
Winnipeg real estate has a new boss of Realtors. Wes Schollenberg has been named the head of the what is now the Winnipeg Real Estate Association. The Winnipeg Sun has the full details.
The Winnipeg Real Estate Board is ringing in the new year with a new name and a new boss. Wes Schollenberg will succeed Walter Boni as president of what is now called the Winnipeg Realtors Association.
Each president is elected to serve a one-year, voluntary term. The 2007 president brings 20 years of real estate experience and is managing partner of the Avison Young Manitoba office, a commercial real estate company. Schollenberg takes the helm as multiple listing service sales near the 12,000 per year and $2-billion volume mark, after two years of record-breaking sales.
In more important news, at least to us here at Snap Up Real Estate, we are on pace to break site traffic records by about 50 percent. Keep coming on back.
The Winnipeg Real Estate Board is ringing in the new year with a new name and a new boss. Wes Schollenberg will succeed Walter Boni as president of what is now called the Winnipeg Realtors Association.
Each president is elected to serve a one-year, voluntary term. The 2007 president brings 20 years of real estate experience and is managing partner of the Avison Young Manitoba office, a commercial real estate company. Schollenberg takes the helm as multiple listing service sales near the 12,000 per year and $2-billion volume mark, after two years of record-breaking sales.
In more important news, at least to us here at Snap Up Real Estate, we are on pace to break site traffic records by about 50 percent. Keep coming on back.
Sunday, January 07, 2007
New Paper Millionaires Have Popped Up All Over The Lower Mainland
So the property assessments have come in and new paper millionaires have popped up all over the lower mainland. 1331 new million dollar home assessments have been given in Surrey, White Rock, And Delta alone. I guess the municipalities will be getting a bump in revenue come tax time. Even though they say it won't happen. Read the article below for the full story.
The number of millionaire homes in the Lower Mainland is up sharply from a year ago, quadrupling in Burnaby and at least tripling in places like Surrey, Richmond and Maple Ridge.
Aside from Vancouver proper, the most homes worth at least $1 million are in tony West Vancouver, where more than 7,900 detached houses are in the seven-figure range. They now account for more than 70 per cent of the market there, up from 41 per cent just a year ago.
Millionaire houses now make up 47 per cent of the market in the village of Anmore – exceeding the rate in Whistler – and 32 per cent in Belcarra.
The numbers come from property assessment data crunched by Landcor Data Corp.
They show that while million-dollar real estate accounts for less than three per cent of the homes in most suburbs of Greater Vancouver, they are growing fast.
Langley Township now has 68 seven-figure homes, up from nine a year ago.
More than 1,200 houses crossed over to millionaire status in Surrey, where 1,676 now qualify, making up 2.7 per cent of the market.
Millionaire houses tripled to 711 in Richmond, quadrupled to 654 in Burnaby and more than tripled to 286 in Coquitlam.
Six per cent of homes in North Vancouver District, or a total of 1,190, now qualify.
Landcor president Rudy Nielsen said the same trend is being felt across B.C., but is particularly acute in the Lower Mainland because of limited land available to develop.
“We’re bordered by rivers, we’re bordered by mountains and we’re bordered by Agricultural Land Reserve,” he said.
Nielsen said lot sizes continue to get smaller in the region and he expects the trend of building up in higher densities will accelerate.
“We’re going to go vertical rather than horizontal,” he said, adding ALR lands must be preserved to produce food.
The other factor in play, he said, is that the province and its attractive lifestyle is now increasingly being discovered by people from across Canada and all over the world.
He said $600 million worth of B.C. properties were sold to Albertans last year, often Calgarians looking for a second home or recreational property. Americans, often from California, are also major buyers here.
Six per cent of residential properties sold in 2005 were to out-of-province buyers, he said.
Corporate vice-presidents in Toronto now increasingly like to live here and use technology or commute back when necessary.
Americans fearful of terrorism also see a home in Canada as a hedge against catastrophe at home, he added.
“If all hell breaks loose down there they can move up here and have a safe place to live.”
Million-dollar houses:
- Surrey – 1,676 (up from 496)
2.7 per cent of market
- Delta – 206 (up from 139)
0.9 per cent of market
- White Rock – 145 (up from 61)
5.2 per cent of market
The number of millionaire homes in the Lower Mainland is up sharply from a year ago, quadrupling in Burnaby and at least tripling in places like Surrey, Richmond and Maple Ridge.
Aside from Vancouver proper, the most homes worth at least $1 million are in tony West Vancouver, where more than 7,900 detached houses are in the seven-figure range. They now account for more than 70 per cent of the market there, up from 41 per cent just a year ago.
Millionaire houses now make up 47 per cent of the market in the village of Anmore – exceeding the rate in Whistler – and 32 per cent in Belcarra.
The numbers come from property assessment data crunched by Landcor Data Corp.
They show that while million-dollar real estate accounts for less than three per cent of the homes in most suburbs of Greater Vancouver, they are growing fast.
Langley Township now has 68 seven-figure homes, up from nine a year ago.
More than 1,200 houses crossed over to millionaire status in Surrey, where 1,676 now qualify, making up 2.7 per cent of the market.
Millionaire houses tripled to 711 in Richmond, quadrupled to 654 in Burnaby and more than tripled to 286 in Coquitlam.
Six per cent of homes in North Vancouver District, or a total of 1,190, now qualify.
Landcor president Rudy Nielsen said the same trend is being felt across B.C., but is particularly acute in the Lower Mainland because of limited land available to develop.
“We’re bordered by rivers, we’re bordered by mountains and we’re bordered by Agricultural Land Reserve,” he said.
Nielsen said lot sizes continue to get smaller in the region and he expects the trend of building up in higher densities will accelerate.
“We’re going to go vertical rather than horizontal,” he said, adding ALR lands must be preserved to produce food.
The other factor in play, he said, is that the province and its attractive lifestyle is now increasingly being discovered by people from across Canada and all over the world.
He said $600 million worth of B.C. properties were sold to Albertans last year, often Calgarians looking for a second home or recreational property. Americans, often from California, are also major buyers here.
Six per cent of residential properties sold in 2005 were to out-of-province buyers, he said.
Corporate vice-presidents in Toronto now increasingly like to live here and use technology or commute back when necessary.
Americans fearful of terrorism also see a home in Canada as a hedge against catastrophe at home, he added.
“If all hell breaks loose down there they can move up here and have a safe place to live.”
Million-dollar houses:
- Surrey – 1,676 (up from 496)
2.7 per cent of market
- Delta – 206 (up from 139)
0.9 per cent of market
- White Rock – 145 (up from 61)
5.2 per cent of market
Friday, January 05, 2007
So You Think That All Those Fancy Words You Used To Describe Your Real Estate Are Helping To Sell It?
So you think that all those fancy words you used to describe your real estate are helping to sell it? Think again. A recent study done at the University of Guelph, carried out over four years, shows that 'must-see' or 'motivated seller' deters people from buying. Apparently words like 'beautiful' are good words to use, with selling prices of these home being up to 15% higher. Positive descriptions are the way to go, stay away from any mention of 'fixer upper' or 'motivated seller'. CBC.ca has the full article online.
Wednesday, January 03, 2007
Happy New Year, For Most Of You Anyway
It is the New Year, and may it be a happy one for all. Property owners can start the new year with a little excitement in their mailbox. The 2007 property assessment for the Province of British Columbia are here. For some the thrill is so see how many thousands below market value they paid for their recent real estate purchases. For others the hope is that the assessment will one day equal the money paid. Personally I found that the assessment of my home increased about 12%, but still is not equal to the price I paid. Where I live this is the norm, sale prices are higher than assessed value. I also found out that my neighbor, who has the exact same home plan, build date, and builder, has an assessment of about 15K less than me. I guess that finished basement make the difference. You can also find out how the assessment authority comes up with their numbers.
How Do They Set The Values?
Check your Property Value?
Need a new Home?
Need New Furniture?
How Do They Set The Values?
Check your Property Value?
Need a new Home?
Need New Furniture?
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