Calgary led the country in February with the steepest decline in house prices, according to a national report released Wednesday.
The Teranet-National Bank National Composite House Price Index said Calgary house prices fell by 8.1 per cent year-over-year followed by Vancouver at 6.4 per cent and Toronto at five per cent.
The national composite price drop was 4.1 per cent.
Calgary also recorded the biggest drop from peak prices. In the city, house prices have fallen by 12 per cent from the August 2007 peak, followed by a 10.2 per cent decline in Vancouver from its June 2008 peak and a nine per cent drop in Toronto from its peak of August 2008.
Thursday, April 30, 2009
Thursday, April 23, 2009
Lessons from Toronto’s Real Estate Crash
The overall mood about the current state of Toronto’s real estate market typically depends on the two most commonly reported statistics in the press, average price and sales volume. Average price is a popular measure but can be easily skewed by changes in the housing stock being sold.
I often have clients ask me for a list of the best and worst performing neighbourhoods in the city, based solely on changes in average price. The problem with this approach is that average prices can be very easily skewed. For example, if a new condo with average priced units is completed in a neighbourhood well known for expensive detached homes, the average price for that neighbourhood will fall not because house values have dropped but because the condominium units are having a negative effect on average prices.
The other commonly reported figure in the press is the change in sales volume calculated by comparing the current month’s sales to sales in the same month in the previous year.
I often have clients ask me for a list of the best and worst performing neighbourhoods in the city, based solely on changes in average price. The problem with this approach is that average prices can be very easily skewed. For example, if a new condo with average priced units is completed in a neighbourhood well known for expensive detached homes, the average price for that neighbourhood will fall not because house values have dropped but because the condominium units are having a negative effect on average prices.
The other commonly reported figure in the press is the change in sales volume calculated by comparing the current month’s sales to sales in the same month in the previous year.
Wednesday, April 22, 2009
Canada questions real estate competition
In March 2007 the Canadian Competition Bureau, the country's equivalent of the U.S. Federal Trade Commission and U.S. Justice Department's Antitrust Division, met with limited-service real estate brokers in the U.S.
The meetings were part of a bureau examination (see Inman News) that eyed passed and proposed multiple listing service-related restrictions on limited-service and flat-fee brokers and whether those restrictions limited competition within the real estate industry.
The meetings were part of a bureau examination (see Inman News) that eyed passed and proposed multiple listing service-related restrictions on limited-service and flat-fee brokers and whether those restrictions limited competition within the real estate industry.
Saturday, April 18, 2009
Toronto housing market shows signs of recovery
There are signs that life is returning to Toronto's depressed real estate market.
Numbers released Friday show only slightly fewer homes were sold in Toronto during the first two weeks of April 2009 compared with April 2008.
There were just under 1,500 homes sold in the first half of the month — or about one per cent fewer than the same two weeks last year.
"In lock-step with the favourable March results, resale housing market conditions in the first half of April were markedly improved compared to the winter time," said Toronto Real Estate Board president Maureen O’Neill in a prepared statement.
Numbers released Friday show only slightly fewer homes were sold in Toronto during the first two weeks of April 2009 compared with April 2008.
There were just under 1,500 homes sold in the first half of the month — or about one per cent fewer than the same two weeks last year.
"In lock-step with the favourable March results, resale housing market conditions in the first half of April were markedly improved compared to the winter time," said Toronto Real Estate Board president Maureen O’Neill in a prepared statement.
Friday, April 17, 2009
Canadian real estate market showing positive signs
There may be some light at the end of tunnel, as far as real estate is concerned.
The Canadian Real Estate Association says the recent free fall in house sales and house prices is slowing down.
The CREA's chief economic Gregory Klump tells 660News the number of new listings across Canada was lower in March than in the previous month. He says sales are picking up as well, as homes continue to become more affordable.
Klump says there is still lots of downward pressure on prices in Calgary. He adds it could be another year before the Calgary housing market is back to what is considered a balanced market.
The Canadian Real Estate Association says the recent free fall in house sales and house prices is slowing down.
The CREA's chief economic Gregory Klump tells 660News the number of new listings across Canada was lower in March than in the previous month. He says sales are picking up as well, as homes continue to become more affordable.
Klump says there is still lots of downward pressure on prices in Calgary. He adds it could be another year before the Calgary housing market is back to what is considered a balanced market.
Wednesday, April 15, 2009
Monday, April 13, 2009
Montreal Home Sales in March Down Annualized 12%
(CEP News) - The pace of home sales declines in Montreal eased in March, while real estate prices continued to remain above year-ago levels, the Greater Montreal Real Estate Board reported.
Sales in the month were down 12% from a year earlier, much less than the 30% year-over-year drop seen in February.
The median price of a single-family home rose to $227,000, up 1% from a year earlier and up from $225,000 in February. The median price of condominiums rose 2%, while plexes were up 3%, the real estate board said.
"Spring is the busiest time of the year for the resale market, and 2009 should be no exception," said Michel Beauséjour, FCA, Chief Executive Officer of the GMREB.
Sales in the month were down 12% from a year earlier, much less than the 30% year-over-year drop seen in February.
The median price of a single-family home rose to $227,000, up 1% from a year earlier and up from $225,000 in February. The median price of condominiums rose 2%, while plexes were up 3%, the real estate board said.
"Spring is the busiest time of the year for the resale market, and 2009 should be no exception," said Michel Beauséjour, FCA, Chief Executive Officer of the GMREB.
Saturday, April 11, 2009
Toronto real estate market appears to be stabilizing
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Toronto real estate market appears to be stabilizing
Posted: April 06, 2009, 6:58 PM by Rob Roberts
By Danna Zabrovsky, National Post
The average price of a GTA home dropped about 5% in March, compared to the same month last year, to $362,052. But the Toronto Real Estate Board says that’s the lowest decline year-over-year in five months.
“What we saw in February and again in March was a bit of a pick-up after sales had dropped off quite strongly in the December-January period,’’ said Jason Mercer, TREB’s senior manager of market analysis. ‘‘We have seen more interest in residential real estate in the Toronto area over the last couple of months.”
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Toronto real estate market appears to be stabilizing
Posted: April 06, 2009, 6:58 PM by Rob Roberts
By Danna Zabrovsky, National Post
The average price of a GTA home dropped about 5% in March, compared to the same month last year, to $362,052. But the Toronto Real Estate Board says that’s the lowest decline year-over-year in five months.
“What we saw in February and again in March was a bit of a pick-up after sales had dropped off quite strongly in the December-January period,’’ said Jason Mercer, TREB’s senior manager of market analysis. ‘‘We have seen more interest in residential real estate in the Toronto area over the last couple of months.”
Friday, April 10, 2009
Canada’s Housing Starts Spring Up in March
March Starts Increase to 155,000 Units Annualized
How much of a fuss should be made over the fact that housing starts in the country jumped up from 136,000 units (annualized) in February to 155,000 units in March, according to the latest report from Canada Mortgage and Housing Corporation (CMHC)? Some, but not much.
The current level is about the same as it was in January and lies well below the 200,000-units per month levels that were achieved during most of the preceding seven years. Furthermore, about 150,000 units is what many analysts have been expecting for the year as a whole anyway.
How much of a fuss should be made over the fact that housing starts in the country jumped up from 136,000 units (annualized) in February to 155,000 units in March, according to the latest report from Canada Mortgage and Housing Corporation (CMHC)? Some, but not much.
The current level is about the same as it was in January and lies well below the 200,000-units per month levels that were achieved during most of the preceding seven years. Furthermore, about 150,000 units is what many analysts have been expecting for the year as a whole anyway.
Friday, April 3, 2009
Financing secured for Calgary's Bow tower
CALGARY -- The final piece of financing for Calgary's landmark new Bow tower provides a much-needed vote of confidence to a city struggling with thousands of layoffs and a frozen real estate market.
H&R Real Estate Investment Trust HR.UN-T, the firm building the $1.5-billion Bow tower, said late Wednesday night that it has secured $425-million in financing from a consortium of six Canadian banks.
With that in hand, H&R said it now has sufficient money to complete the 58-storey, two million-square-foot "trophy" that will be the tallest Canadian tower west of Toronto.
"It comes at a very good time simply because we have been barraged with continuous bad news about many aspects of the economy," said Stephen Carruthers, the Calgary managing partner for Zeidler, the architecture firm that teamed with Foster + Partners to design the tower. "People consider it a talisman of continued confidence in the western economy."
H&R Real Estate Investment Trust HR.UN-T, the firm building the $1.5-billion Bow tower, said late Wednesday night that it has secured $425-million in financing from a consortium of six Canadian banks.
With that in hand, H&R said it now has sufficient money to complete the 58-storey, two million-square-foot "trophy" that will be the tallest Canadian tower west of Toronto.
"It comes at a very good time simply because we have been barraged with continuous bad news about many aspects of the economy," said Stephen Carruthers, the Calgary managing partner for Zeidler, the architecture firm that teamed with Foster + Partners to design the tower. "People consider it a talisman of continued confidence in the western economy."
Wednesday, April 1, 2009
Cominar REIT - 10 Consecutive Years of Growth
"We are very pleased with our 2008 financial results; we achieved
continued growth in our markets despite the general economic turmoil and
credit crisis. Our fundamentals remain very solid, as reflected by our stable
occupancy rate of 94.6%, our ability to renew and arrange financings, and our
conservative interest coverage ratio of 2.7:1. Cominar is well positioned to
maintain a sound financial performance through an economic downturn, given its
quality real estate portfolio, solid and well-diversified tenant base,
disciplined cost management, healthy financial position and growth potential,"
indicated Michel Dallaire, President and Chief Executive Officer of Cominar.
Operating revenues totaled $235.3 million for the fiscal year ended
December 31, 2008, up 29.4%. This significant increase is due mainly to the
contribution of the acquisitions completed and integrated in 2007 and 2008.
continued growth in our markets despite the general economic turmoil and
credit crisis. Our fundamentals remain very solid, as reflected by our stable
occupancy rate of 94.6%, our ability to renew and arrange financings, and our
conservative interest coverage ratio of 2.7:1. Cominar is well positioned to
maintain a sound financial performance through an economic downturn, given its
quality real estate portfolio, solid and well-diversified tenant base,
disciplined cost management, healthy financial position and growth potential,"
indicated Michel Dallaire, President and Chief Executive Officer of Cominar.
Operating revenues totaled $235.3 million for the fiscal year ended
December 31, 2008, up 29.4%. This significant increase is due mainly to the
contribution of the acquisitions completed and integrated in 2007 and 2008.
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