The Vancouver Sun sought to challenge a few of the myths that a lot of people have, asking the research firm Landcor Data Corp. to put real data to confirming or dispelling those ideas.
We consulted other experts, from appraisers to realtors and economists to answer our questions, such as whether renovating your kitchen gives you the best lasting bang for your buck, and whether the dramatic rise the Lower Mainland has seen in real estate prices has reached its peak.
"A lot of things surprised me," Landcor president Rudy Nielsen said in an interview about the experience of turning his research staff loose on some of The Sun's questions.
Tuesday, April 29, 2008
Friday, April 25, 2008
Areas north of Montreal seeing incredible residential boom
In 2006, when Manouk Alexanian decided to buy a condo, he quickly found himself priced out of Montreal.
"I looked around the downtown area for condos and the prices were high, sizes were small and the taxes were high as well," said the 29-year-old consultant. "But since my job is in downtown, I needed a fast way to get there."
Rather than sacrifice space or convenience, Alexanian began to look north, in Laval, where prices were lower and a newly-extended métro line was set to open. After less than two weeks, he found a 900-square-foot apartment for $120,000, about two blocks from the de la Concorde métro, one of the three new métro stations that opened last year.
"I looked around the downtown area for condos and the prices were high, sizes were small and the taxes were high as well," said the 29-year-old consultant. "But since my job is in downtown, I needed a fast way to get there."
Rather than sacrifice space or convenience, Alexanian began to look north, in Laval, where prices were lower and a newly-extended métro line was set to open. After less than two weeks, he found a 900-square-foot apartment for $120,000, about two blocks from the de la Concorde métro, one of the three new métro stations that opened last year.
Monday, April 21, 2008
Prices of resale homes edged up in Canada last month
The average price of a resale home in Canada's major markets was $329,383 in March (up from $327,477 in February and $325,183 in January). That leaves the average sale price up 4.0 per cent from March of last year.
For the first three months of the year, average prices realized through MLS sales were up 5.5 per cent from the first quarter of 2007. That's the smallest year-over-year price increase in seven years.
CREA figures show that overall sales fell last month by 18.7 per cent from a year earlier, while new listings grew in the first quarter.
For the first three months of the year, average prices realized through MLS sales were up 5.5 per cent from the first quarter of 2007. That's the smallest year-over-year price increase in seven years.
CREA figures show that overall sales fell last month by 18.7 per cent from a year earlier, while new listings grew in the first quarter.
Thursday, April 17, 2008
Toronto's Real Estate Market - Boring for the Next Couple of Years
CIBC World Markets economist Benjamin Tal appears to agree. From a Globe and Mail article last week:
"It's the end of an era, if you wish," says Mr. Tal. "I think that the toronto real estate market will be more boring for the next couple of years — which may be a good thing."
Mr. Tal says one key measure — unit sales as a share of new listings — is sitting at about 55 per cent right now. Last year, it was about 65 per cent.
A range of 40 to 60 per cent is considered a balanced market, and Mr. Tal expects to see Toronto sales remain in that range. In fact, the percentage will likely to fall to 50 per cent or so, he predicts.
"It's the end of an era, if you wish," says Mr. Tal. "I think that the toronto real estate market will be more boring for the next couple of years — which may be a good thing."
Mr. Tal says one key measure — unit sales as a share of new listings — is sitting at about 55 per cent right now. Last year, it was about 65 per cent.
A range of 40 to 60 per cent is considered a balanced market, and Mr. Tal expects to see Toronto sales remain in that range. In fact, the percentage will likely to fall to 50 per cent or so, he predicts.
Monday, April 14, 2008
Report predicts slowdown in Alberta real estate market
CALGARY - A report released today by TD Bank Financial Group says housing starts in Alberta as well as the number of homes sold will retreat in the next two years as the country on the whole experiences a cooling trend in the residential real estate industry.
Also the yearly pace of resale home price growth in the province will slow down substantially from the highs recorded in the past two years.
"A soft landing is anticipated," said the report about the Canadian housing market. "This moderation will reflect the fact that the past rapid price appreciation has eroded affordability and has encouraged additional supply from new listings and new home construction. A weaker domestic economy will also contribute to the cooling."
Also the yearly pace of resale home price growth in the province will slow down substantially from the highs recorded in the past two years.
"A soft landing is anticipated," said the report about the Canadian housing market. "This moderation will reflect the fact that the past rapid price appreciation has eroded affordability and has encouraged additional supply from new listings and new home construction. A weaker domestic economy will also contribute to the cooling."
Saturday, April 12, 2008
Investing in Montreal
A HALIFAX property developer is helping reshape the Montreal skyline and attributes increasing investor interest in the city to its annual Grand Prix and acclaimed jazz and comedy festivals.
Richard Homburg just launched the $35-million Phase II of the 333 Sherbrooke St. E. luxury condominium project and at the same time unveiled an ambitious plan for the CN Central Station in the heart of the city that he scooped up last year for $355 million.
The completed project will bring the Homburg Invest Inc. portfolio in Montreal up to the $1-billion mark.
Mr. Homburg said in Montreal he will build two $150-million 24-storey office towers at the CN Central Station site to take advantage of a proposed new link between the downtown location and Pierre Elliott Trudeau International Airport at Dorval.
Richard Homburg just launched the $35-million Phase II of the 333 Sherbrooke St. E. luxury condominium project and at the same time unveiled an ambitious plan for the CN Central Station in the heart of the city that he scooped up last year for $355 million.
The completed project will bring the Homburg Invest Inc. portfolio in Montreal up to the $1-billion mark.
Mr. Homburg said in Montreal he will build two $150-million 24-storey office towers at the CN Central Station site to take advantage of a proposed new link between the downtown location and Pierre Elliott Trudeau International Airport at Dorval.
Wednesday, April 9, 2008
Toronto's condo market booms
Toronto - The housing market in much of the United States may be moribund, but in Toronto, something of a boom mentality still exists.
In March, several hundred Toronto residents braved the cold to line up before the opening of the sales office of a new condo project. Certified checks in hand, they wanted to make sure they got their choice within Aura, a proposed 75-story residential tower scheduled to go up downtown.
This isn't the first time condo sales debuts have drawn large crowds. In November 2007, speculative buyers waited patiently beside heat lamps to place deposits on another 80-story slab. Despite a last-minute price hike – apartments advertised for $2 million catapulted to $8 million – sales remained heavy.
In March, several hundred Toronto residents braved the cold to line up before the opening of the sales office of a new condo project. Certified checks in hand, they wanted to make sure they got their choice within Aura, a proposed 75-story residential tower scheduled to go up downtown.
This isn't the first time condo sales debuts have drawn large crowds. In November 2007, speculative buyers waited patiently beside heat lamps to place deposits on another 80-story slab. Despite a last-minute price hike – apartments advertised for $2 million catapulted to $8 million – sales remained heavy.
Saturday, April 5, 2008
Canada's housing market remains stable
Canada's real estate market stands on stable footing. On average, healthy year-over-year house price gains were recorded during the first three months of 2008. While more modest price increases were observed when compared to previous quarters, the solid appreciations noted in the first quarter are largely due to the shared effects of resilient local economies, high immigration levels, and relatively low interest rates - all leading to enduring buyer demand, according to a House Price Survey report released today by Royal LePage Real Estate Services.
While almost all markets surveyed experienced price increases, it was the smaller cities, with relatively affordable housing and strong economies based on resource industries that emerged with the most significant gains. Thriving Saskatoon saw appreciation as high as 66 per cent, while areas in Newfoundland posted increases above 20 per cent for the first time since Royal LePage started tracking house prices.
While almost all markets surveyed experienced price increases, it was the smaller cities, with relatively affordable housing and strong economies based on resource industries that emerged with the most significant gains. Thriving Saskatoon saw appreciation as high as 66 per cent, while areas in Newfoundland posted increases above 20 per cent for the first time since Royal LePage started tracking house prices.
Tuesday, April 1, 2008
Real Estate Boom In Canada Loosing Steam
The Conference Board of Canada is warning of "a lengthy slowdown" in Canada's residential construction industry with profits, already off 22 per cent in 2007, falling for the next two years.
The longest housing boom in the post-war era is now "out of breath," following spectacular growth in the number of homes built and the prices paid for them, the board said in a report released Thursday. "Satiated pent-up demand and slower economic growth is leading to what is expected will be a long slowdown in the housing market," the report says.
The longest housing boom in the post-war era is now "out of breath," following spectacular growth in the number of homes built and the prices paid for them, the board said in a report released Thursday. "Satiated pent-up demand and slower economic growth is leading to what is expected will be a long slowdown in the housing market," the report says.
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