Real estate experts across Canada have concluded that the decade long real estate jump is about to run off a cliff. Prices reaching of half a million for homes in Kelowna and Calgary are about to drop off significantly.
To analyze whether housing prices are overvalued, the researchers looked at current house prices in nine major Canadian cities. They compared these prices to their own calculation of what a balanced market price should be, derived from the relationship between house prices, rents and the cost of investing in housing in each market.
The study warned that the potential for price declines is greatest in cities that have a large supply of unsold inventory or a mismatch between the number of units and the number of households ready to occupy them.
Somerville concluded that only in Toronto are prices in balance with rents. In Halifax, Montreal, Ottawa, Regina and Winnipeg prices would need to drop by at least 20 per cent to be in balance, while Calgary and Vancouver would require a 7 to 11 per cent drop in prices to reach the study's equilibrium level. But the study found in Edmonton prices are actually below equilibrium, by 8 per cent... Article.
Tuesday, September 09, 2008
Monday, July 21, 2008
US Bargain Real Estate
Some experts area sating that USA real estate is going to get even cheaper.
Attention, real estate shoppers: the entire U.S. sunbelt is now officially on sale. Prices in many areas of Florida, Arizona, Nevada and California have dropped 40 per cent from their peaks of a couple of years ago, to the point where the deals seem nearly too good to be true. In Naples, Fla., a three-bedroom, two-bathroom home that sold for $350,000 in 2007 is on the market for only $200,000. A starter home in Sacramento, Calif., that sold for $215,000 in 2004, is on offer for a mere $129,000. And remember: these aren't sale prices. They're asking prices. Article.
This means that in a couple of years your average Albertan can sell there home in Edmonton or Calgary for $500K, then move to sunny California and buy a home for $100K. This is an exaggeration of course, but if the trend continues any longer that 2012 it will be the reality.
Attention, real estate shoppers: the entire U.S. sunbelt is now officially on sale. Prices in many areas of Florida, Arizona, Nevada and California have dropped 40 per cent from their peaks of a couple of years ago, to the point where the deals seem nearly too good to be true. In Naples, Fla., a three-bedroom, two-bathroom home that sold for $350,000 in 2007 is on the market for only $200,000. A starter home in Sacramento, Calif., that sold for $215,000 in 2004, is on offer for a mere $129,000. And remember: these aren't sale prices. They're asking prices. Article.
This means that in a couple of years your average Albertan can sell there home in Edmonton or Calgary for $500K, then move to sunny California and buy a home for $100K. This is an exaggeration of course, but if the trend continues any longer that 2012 it will be the reality.
Tuesday, July 15, 2008
Real Estate In Canada Is Continuing Its Cooling Trend
Canadian Real Estate is not in the same state as prices to the south of the border, but concern is mounting. Prices are still increasing in Canada, but softer markets in Alberta and British Columbia are blamed for the slowdown in increases.
New house prices rose in May at their slowest pace in almost six years, a further sign that Canada's real estate market is cooling, particularly in Alberta and British Columbia.
Prices rose 4.1 per cent in May from a year earlier, down from 5.2 per cent in April and the weakest since the 4 per cent registered in July, 2002, Statistics Canada said Friday.
On a monthly basis, prices remained unchanged between April and May.
Statscan said the May showing continued “a deceleration that started in September, 2006, due mainly to the softening market in Alberta and British Columbia.”
Saskatchewan continued to see the biggest increases. In Regina, for example, home prices rose 30.4 per cent, and in Saskatoon 30.2 per cent. Still, Statscan noted, Regina's showing slipped from 34 per cent in April and Saskatoon's from February's record 58.3 per cent.
In Alberta and British Columbia, the impact was noticeable. Article.
New house prices rose in May at their slowest pace in almost six years, a further sign that Canada's real estate market is cooling, particularly in Alberta and British Columbia.
Prices rose 4.1 per cent in May from a year earlier, down from 5.2 per cent in April and the weakest since the 4 per cent registered in July, 2002, Statistics Canada said Friday.
On a monthly basis, prices remained unchanged between April and May.
Statscan said the May showing continued “a deceleration that started in September, 2006, due mainly to the softening market in Alberta and British Columbia.”
Saskatchewan continued to see the biggest increases. In Regina, for example, home prices rose 30.4 per cent, and in Saskatoon 30.2 per cent. Still, Statscan noted, Regina's showing slipped from 34 per cent in April and Saskatoon's from February's record 58.3 per cent.
In Alberta and British Columbia, the impact was noticeable. Article.
The Price Of Thunder Bay, ON Real Estate Is On The Rise
The price of Thunder Bay real estate is on the rise. Traditionally the city was home to some of the most affordable homes in the country, but market conditions have changed and prices are climbing.
The president of the Thunder Bay Real Estate Board says home prices in the city are up four to five percent from last year and the shortage of homes on the market is largely responsible.
John Litt says the average price for a house in Thunder Bay right now is in the $120,000 range and people who already have houses seem to be content with what they have and are sitting tight.
So it's the best of times of times and the worst of times depending on whether you are trying to buy or trying to sell a home.
Thunder Bay's housing market has become a major seller's marketplace and those looking to buy a house are finding a lack of good, affordable homes or are encountering an all-out bidding war or must rush to close a deal. And with market analysts predicting current trends to continue, that's forcing prospective buyers to think later or be left in the dust. Article
Tuesday, June 24, 2008
Real Estate In Canada Has Been Taking A Bit Of A Hit Lately
Real estate in Canada has been taking a bit of a hit lately, with the mortgage and housing mess down south. Recently MoneySense put out a list of good places to buy in Canada based on affordability, strength of local economy, and momentum.
To help us gain an even better sense of a city's Value, we looked at local wages and figured out the number of years of average household income that it would take to purchase the typical local home. We downgraded communities where local residents couldn't afford to buy homes easily; we gave highest marks to cities where they could. Our reasoning was that places where homes are affordable are places where real estate prices are solidly rooted in economic fundamentals and are therefore unlikely to plunge. The differences between communities can be huge. In Regina, a typical family needs two-and-a-half years of income to buy a home; in Vancouver, a typical family needs nearly eight years of income. Talking strictly in terms of bang for buck, Regina is a much better place to buy. Full Article.
Some of the top performers were: Regina, Saskatoon, Winnipeg, Edmonton and Vancouver.
To help us gain an even better sense of a city's Value, we looked at local wages and figured out the number of years of average household income that it would take to purchase the typical local home. We downgraded communities where local residents couldn't afford to buy homes easily; we gave highest marks to cities where they could. Our reasoning was that places where homes are affordable are places where real estate prices are solidly rooted in economic fundamentals and are therefore unlikely to plunge. The differences between communities can be huge. In Regina, a typical family needs two-and-a-half years of income to buy a home; in Vancouver, a typical family needs nearly eight years of income. Talking strictly in terms of bang for buck, Regina is a much better place to buy. Full Article.
Some of the top performers were: Regina, Saskatoon, Winnipeg, Edmonton and Vancouver.
Snap Up Real Estate Canada Is Growing
Snap Up Real Estate has added new city pages.
Niagara Falls, Thunder Bay, Windsor, and Langley are all new additions to our city page index. If you have any comments of suggestions for the pages feel free to let us know.
Niagara Falls, Thunder Bay, Windsor, and Langley are all new additions to our city page index. If you have any comments of suggestions for the pages feel free to let us know.
Thursday, June 05, 2008
Real Estate Is Falling Off In Most Of Canada, But Saskatchewan Is Still Flying
Real Estate is falling off in most of Canada, but Saskatchewan is still flying. Property that was once hard to give away is now being sold to the highest bidder, and the bids are high. Great deals can still be found on vacation property in Saskatchewan if you look. Try these building lots for sale near Esterhazy, SK at $50K a pop.
...view of Round Lake and a north view of the Qu'Appelle Valley hills. A Lilac hedge borders the south side of each parcel and the north side is bordered by Ash. Frontages range from 240 ft, to 325 ft. with depths of 150 to 250 ft. The parcels are flat, accessed by pavement, have access to power, natural gas, telephone, septic tanks and private well. View the original listing with pictures.
If the BC coast is more your flavour check out this condo in Sechelt. It has all the space you will need, plus views of the ocean and a place for your boat.
...view of Round Lake and a north view of the Qu'Appelle Valley hills. A Lilac hedge borders the south side of each parcel and the north side is bordered by Ash. Frontages range from 240 ft, to 325 ft. with depths of 150 to 250 ft. The parcels are flat, accessed by pavement, have access to power, natural gas, telephone, septic tanks and private well. View the original listing with pictures.
If the BC coast is more your flavour check out this condo in Sechelt. It has all the space you will need, plus views of the ocean and a place for your boat.
Wednesday, April 30, 2008
Canada Has Become Infected With The Recession From The South
Canada has become infected with the recession from the south. The price of oil is at all time highs, and the economy is stagnant. The next 24 months could be a very bumpy ride for the Canadian economy hurt by the loss of manufacturing jobs.
The economy has sharply deteriorated to near recessionary levels and the cost of filling the tank and putting bread on the table is going to go sharply higher, Canadians were told Thursday.
A bleak economic assessment came from the Bank of Canada's quarterly monetary report, which warned that Canadian exports, particularly from manufacturers in central Canada, will be hard hit this year by the U.S. slump and tight money in the credit markets. Article.
The economy has sharply deteriorated to near recessionary levels and the cost of filling the tank and putting bread on the table is going to go sharply higher, Canadians were told Thursday.
A bleak economic assessment came from the Bank of Canada's quarterly monetary report, which warned that Canadian exports, particularly from manufacturers in central Canada, will be hard hit this year by the U.S. slump and tight money in the credit markets. Article.
Wednesday, April 23, 2008
Saskatchewan Real Estate Is Red Hot, And Sees No Cooling Trend In Sight
Saskatchewan real estate is red hot, and sees no cooling trend in sight. But, don not despair, decent homes with decent prices can still be found.
In a city where the average selling price of houses is now $265,000, the report says first-time buyers looking for something affordable in Saskatoon are still finding bungalows in good condition for under $200,000 in west-end neighbourhoods such as Confederation Park, Fairhaven, Meadow Green, Mayfair and Westmount.
There are also condos to be had in apartment conversions in neighbourhoods such as Hudson Bay Park.
Should a first-time buyer look at going into a $200,000 detached house in the Saskatoon real estate market, carrying costs for a $180,000 mortgage would sit at about $1,150 a month for a conventional 25-year mortgage or about $976 for a 40-year mortgage. Those numbers were calculated by Re/Max using TD Canada Trust financing at 5.75 per cent for a five-year term. The mortgage rate payments were calculated before Tuesday's Bank of Canada half-point rate cut. Article
In a city where the average selling price of houses is now $265,000, the report says first-time buyers looking for something affordable in Saskatoon are still finding bungalows in good condition for under $200,000 in west-end neighbourhoods such as Confederation Park, Fairhaven, Meadow Green, Mayfair and Westmount.
There are also condos to be had in apartment conversions in neighbourhoods such as Hudson Bay Park.
Should a first-time buyer look at going into a $200,000 detached house in the Saskatoon real estate market, carrying costs for a $180,000 mortgage would sit at about $1,150 a month for a conventional 25-year mortgage or about $976 for a 40-year mortgage. Those numbers were calculated by Re/Max using TD Canada Trust financing at 5.75 per cent for a five-year term. The mortgage rate payments were calculated before Tuesday's Bank of Canada half-point rate cut. Article
Tuesday, April 08, 2008
Canadian Real Estate News
The loss of jobs in Ontario is dragging down the Ontario real estate market. Not only are building permits down, but Ontario is pulling down the permit averages for the rest of Canada.
Ontario dragged down the rest of the country, with municipalities issuing $5.8 billion worth of building permits, down 1% from January, after peaking at $7 billion last spring. Take out Ontario, and the total value of building permits nationally would have jumped 9.8%. Article.
Permits for new structures are also shifting to multi-family dwellings.
Nationally, the value of non-residential permits fell 25.6% to $1.9 billion due to double-digit decreases in permits for all three components: institutional, commercial and industrial. Ontario construction intentions fell 16% to $2 billion, the lowest value since April 2007. Non-residential intentions in the province fell 44.9% while residential intentions were up 21.3%. Meanwhile, residential permits were up 21.3%. Article.
The Star has launched a new "website created to serve home buyers, sellers, owners and renters throughout the Greater Toronto Area." The site is Yourhome.ca.
Ontario dragged down the rest of the country, with municipalities issuing $5.8 billion worth of building permits, down 1% from January, after peaking at $7 billion last spring. Take out Ontario, and the total value of building permits nationally would have jumped 9.8%. Article.
Permits for new structures are also shifting to multi-family dwellings.
Nationally, the value of non-residential permits fell 25.6% to $1.9 billion due to double-digit decreases in permits for all three components: institutional, commercial and industrial. Ontario construction intentions fell 16% to $2 billion, the lowest value since April 2007. Non-residential intentions in the province fell 44.9% while residential intentions were up 21.3%. Meanwhile, residential permits were up 21.3%. Article.
The Star has launched a new "website created to serve home buyers, sellers, owners and renters throughout the Greater Toronto Area." The site is Yourhome.ca.
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