Real Estate Canada Market News

HST in Effect but Effects are Unclear.

  July 21, 2010 – 10:47 pm

In the weeks following the Harmonized Sales Tax’s appearance in Ontario and British Columbia, consumers, retailers and economists are still trying to understand exactly what its impacts are. While the overall effect seems negligible to consumers, some industries are going to be harder hit than others; and some experts point out that consumers’ perceptions are what will drive changes in their spending patterns, which may or may not be in line with the HST’s actual effect. Ontario and BC Join Eastern Provinces on HST On July 1st, both Ontario and British Columbia joined the ranks of Canadian provinces to adopt the HST, along with New Brunswick, Nova Scotia and Newfoundland, which implemented it in 1996. The HST merges the 5% GST, a federal tax, with the province’s sales tax, to form a single tax (12% in B.C., and 13% in Ontario). However, under the new program, some goods and services that ...

Posted in Real Estate News

Mortgage Rates For July 19, 2010

  July 19, 2010 – 8:01 am

1yr 2.54% (0.00%) 2yr 2.95% (0.00%) 3yr 3.55% (+0.06%) 4yr 4.09% (0.00%) 5yr 3.99% (0.00%) 3yr and 5yr variable closed (Prime - .60%) = 1.90%

Posted in Real Estate News

Canada Home Sales June: Down In 70% of Markets

  July 18, 2010 – 1:11 pm

For the third straight month home sales across Canada have dropped month over month according to the latest report by CREA. While there is a lot in the CREA report that points to an overall cooling in the real estate market there were some bright spots in the report as well. Seasonally adjusted national home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards receded 8.2 per cent in June from the previous month. Led by lower activity in Toronto and Calgary, sales declined in almost 70 per cent of local markets. Source. CREA News First The Bad News... That's the bad news and the continued month over month drop in the sales numbers clearly shows a market that is slowing down. Some would argue this should be expected after mortgage rules were tightened in April and this is just a natural phenomenon that is both wanted and ...

Posted in Real Estate News

Post To Twitter

  July 15, 2010 – 8:43 pm

We have now integrated our blog to automatically ping our twitter page with updates. Follow along with us at Twitter.com. Our user account is Propertysoldca. You can easily access our tweets by clicking on the Twitter box located in the right column throughout the blog.

Posted in Company News

Surprise Decline In May Building Permits

  July 12, 2010 – 8:28 am

Building permits fell sharply last month, surprising and confusing real estate analysts. The experts had predicted approximately 2% slowing in start-up construction; instead, new permits fell nearly 11%. The decline followed two months of steady, strong gains. Led by a sharp reduction in the number of permits for single-family homes, the value of residential construction fell to just under $4 billion(cad) for the month. This is a very volatile series, and I think the drop in residential permits was a bit of a surprise. Robert Kavcic, economist at the Bank of Montreal [Source: The Globe and Mail] In some circles, the decline in residential intentions triggered a rash of bearish forecasts, because the trend developed in spite of government initiatives to spur construction of affordable new housing. When the government announced last year that it would exempt low-cost new homes from HST and would sponsor generous first-time ...

Posted in Real Estate News

Real Estate Brokers: Rewriting The Book On High-End Marketing

  July 12, 2010 – 8:26 am

Real estate brokers, time to face the facts: In Canada’s hottest markets, the temperature is falling fast…except on the high end of the market. If you plan to sell the million-dollar properties, you have to move into the high-end marketing tools. Forget the iPhone apps. Search for a newly-minted Master of Fine Arts qualified to produce the art book that masterfully represents and complements your seven-digit property. The state of the art is art. The fundamental marketing principle has not changed. The promotional tools always should be proportional to the product. In real estate, then, an affordable condo warrants a flyer, and a nice home in a well-established development probably deserves a three-fold brochure. Given the proportions, the perspective, and the state of the art, the deluxe waterfront property with tennis courts and an indoor pool naturally demands a hand-crafted “presentation book.” The more ...

Posted in Real Estate News

Mortgage Rates For July 12, 2010

  July 12, 2010 – 8:12 am

1yr 2.54% ( 0.00%) 2yr 2.95% (-0.10%) 3yr 3.49% ( 0.00%) 4yr 4.09% (-0.05%) 5yr 3.99% ( 0.00%) 3yr and 5yr variable closed (Prime - .60%) = 1.90%

Posted in Real Estate News

Canada’s Real Estate Market: The Cracks Of Price Deflation Are Forming

  July 11, 2010 – 6:25 pm

A number of real estate boards across the country have recently released their June sales numbers and the news is not good. Sales are down across the board with a whopping 30.2% drop in June sales numbers (compared to a year earlier) in the previously frothy Vancouver real estate market near the front of the pack. While the news for Vancouver homeowners trying to sell is bad they are not alone in feeling the pain. Toronto saw it's sales numbers drop 23% over the same time a year earlier and Calgary saw their existing home sales drop a whopping 40% over a year earlier and is down 16% compared to May. Other markets are also feeling the pain albeit more moderately such as Ottawa which saw a 15% drop in sales in the region in June. Air Is Coming Out Of Home Sales It doesn't take a brain surgeon to ...

Posted in Real Estate News

Rogoff Bearish On China Real Estate

  July 11, 2010 – 1:45 am

On July 6, 2010, AsiaNews reported that Kenneth Rogoff, distinguished Harvard economics professor and former chief economist for the International Monetary Fund, has a very grim outlook for real estate markets in China’s major cities. Rogoff claims rampant speculation poses a grave threat to China’s banking system. Speaking on the sidelines of the Asian Investor's Asia-Pacific Debt Investor Forum, [Rogoff said] “It's a bubble and it's unpredictable how it will play out in the banking system. Banks have lent too much in real estate and might have to write off a good proportion of the loans.” [Source: AsiaNews.it] Rogoff bases his assessment on the trends in Beijing and Shanghai real estate prices and an even more careful assessment of the price trends in relation to sales trends. In both major cities, prices rose at an annualized rate above 12%, continuing a boom that began early in 2007. ...

Posted in International Real Estate News

Commercial Real Estate Holds It Breath, Waits For Sale Of ING Assets

  July 11, 2010 – 1:43 am

On the block, 450 warehouses and factories across Canada—all of the commercial properties Dutch financial giant ING bought in 2006, investing over $2 billion in cash. Now, mired in a financial debacle similar to the American banking crisis and beneficiary of billions in Dutch government bail-outs, ING reluctantly will sell its Canadian holdings to put some black ink on its balance sheet. Neither ING nor TD Securities, brokers for the sale, has any interest in selling the portfolio piecemeal, and the rest of Canadian commercial real estate marks time, treads water, or holds its breath until a worthy buyer comes forward. Although ING could manage a minor loss on the sale, the asking price remains in the $2 billion range. Desjardins Securities analyst Jeff Roberts expressed the prevailing view: We believe a number of large institutions and REITs are vying for this portfolio and it is taking a lot ...

Posted in Real Estate News

Vancouver Home Sales Drop 30% In June.

  July 11, 2010 – 1:41 am

Marking the second straight month of declining sales, Vancouver home sales figures for June fell 30% below comparable numbers for June, 2009. Even with the decline, the nearly 3000 sales make it the second busiest June on record. The decline did not surprise most analysts, who had predicted the over-heated market would cool as interest rates rose and qualifying standards for mortgages became more demanding. The size of the decline, however, did surprise the majority of real estate experts, who thought that first-time buyers racing to beat implementation of HST might compensate for a drop in demand among repeat buyers. In May, nationwide real estate sales fell more than 8% as slightly more than 40,000 units sold across Canada. As in Vancouver, so across the country: Although lower than 2009 figures, and although considerably lower than the record-setting numbers the industry posted last fall, May’s national sales ...

Posted in Real Estate News

When Where And Why Should I Buy A New Condo?

  July 8, 2010 – 8:31 am

Many people decide to move primarily because they have “outgrown” their current residence. The addition of children definitely will alter most people’s lifestyle and home life. Buying a home is a big decision but it need not be stressful if you plan it out before hand. And now is probably the best time to buy (or sell) a home in Canada because the interest rates are currently very appealing. If you have decided on purchasing a condominium there are some considerations to be aware of, particularly if you will be a first time condo owner. HOA fees or condo maintenance fees When you purchase a condo it is usually an apartment or townhouse that has been converted into a condominium. They charge fees that generally include any maintenance cost such as landscaping or pool upkeep and cleaning. The Home Owner’s Association or HOA fees represent the cost of maintaining the complex ...

Posted in Real Estate News

What Happens To The Real Estate Market If Rates Continue To Rise?

  July 7, 2010 – 10:36 pm

Mortgage interest rates have been pleasing to the pocket book of many for a while now so can we expect them to rise any time soon? And if and when they do, how high might they go and what will happen to the real estate market when they do? Should we buy or sell our current home? Should we rent instead of taking on a mortgage at this time? Honest questions posed by people who have become wary of the real estate market because of recent devastating results of a crashing economy all over North America. Home ownership will always be preferable to renting It would be nearly impossible to demonstrate an incidence when renting a place to live would be financially wiser than buying one. Unless you are one of the lucky ones who can afford to pay cash for your home, you will need to take on a mortgage loan ...

Posted in Real Estate News

How Do I Put An Offer On A House?

  July 7, 2010 – 10:19 pm

Because the real estate market has yet fully to recover from the recession, you enjoy all the luxuries of “a buyers’ market.” You have time, and you have lots of choices. Shop around, carefully comparing and contrasting lots of properties, looking for all the amenities and upgrades you want in a home. “Curb appeal” is great, but the current market conditions empower you to be picky about the details. Especially look for energy-saving features in the homes you like: Do the houses have “energy-star” appliances, extra insulation in the walls, programmable thermostats, ceiling fans, and other little extras that will save you hundreds of dollars every year? Pay careful attention to location, studying the quality of the neighborhood and the home’s proximity to schools, parks, and shopping. Take care of the preliminaries. While you are shopping for just the right house, take time to arrange advantageous financing. ...

Posted in Real Estate News

Mortgage Interest Rates For July 5th, 2010

  July 6, 2010 – 8:53 am

1yr 2.54% (-0.10%) 2yr 3.05% (0.00%) 3yr 3.49% (0.00%) 4yr 4.14% (-0.14%) 5yr 3.99% (-0.20%) 3yr and 5yr variable closed (Prime - .60%) = 1.90%

Posted in Real Estate News

Winnipeg Real Estate Rock Solid

  July 6, 2010 – 8:48 am

There has never been a better time to buy real estate in Winnipeg. So does that mean it is a buyers market? Well actually it is both a buyers and a sellers market in many parts of Canada today. With current interest rates low and home prices on the rise it’s anybody’s guess as to where this boom in the real estate market will end. One thing certain is there have been well over three hundred million dollars in home sales in recent months with no end in sight. Interest rates are going to go ? Currently the rate of interest on mortgage loans is hovering around the six percent mark and that is a big reason sales are currently so high. But that can’t last much longer and predictors say it will rise, perhaps significantly over the next twelve months or so, making this the optimum time to buy… or sell ...

Posted in Real Estate News

Fixed Rate vs Variable Rate Mortgages: How Do I Choose

  July 2, 2010 – 11:05 am

Making the decision on whether to utilize a fixed rate mortgage or a variable rate mortgage is not always as simple as it should be due to the various factors that go into making a mortgage decision. Determining which type of mortgage is right for you has a lot to do with how you handle risk and volatility in your financial planning. Even if a variable rate mortgage will save you money in the long run if you are the type of person that needs cost certainty over a long time horizon a fixed rate mortgage may allow you to sleep better at night. Fixed Rate Mortgages Explained A fixed rate mortgage is any mortgage where the interest on the principal is preset for a specified period of time. Generally known as the "mortgage term" this can typically range anywhere from 1 to 5 years and in some cases 10 or 15 years ...

Posted in Guides

How Do I Figure Out How Much House I Can Afford?

  July 2, 2010 – 12:52 am

To determine how much you can afford, why not use the same rules and formula lenders apply? Think of it as your pre-pre-qualifying, and especially think of it as excellent practice for your real mortgage application. As you check and double-check all your digits and data, remain aware that your lender will ask you to verify and document all your information—especially about income and assets. Seize the opportunity to request all the documents you need. Meanwhile, you can do some quick and dirty calculations in the privacy of your own home. More than a dozen lenders feature mortgage payment calculators on the websites, and you can extrapolate the monthly income requirements from estimates of your monthly payment. For example, the median priced Canadian home costs approximately $380,000(CAD), which at current rates will cost you approximately $2400(CAD) per month. Lenders expect that your mortgage payment ...

Posted in Real Estate News

Bubble? The Next Step In The Canadian Real Estate Market

  July 1, 2010 – 9:05 pm

With interest rates on the rise and the HST tax now in effect in Ontario and BC, all the right factors are in place for a Canadian real estate slow down. But how slow can it go? Bubble Talk Just Hot Air? As the Canadian housing market rebounded vigorously from the economic crisis, talk of a real estate bubble was just as energetic, with some analysts predicting a US-style meltdown resulting from cheap mortgages, job losses and poor affordability in most major Canadian cities. However a good majority of jobs lost have since been recovered, and interest rates, while making modest gains, don’t yet seem to be in any danger of soaring out of control. On the other hand, the worldwide economic outlook is far from rosy, and instability in the EU and the US can still shock Canada’s newfound economic health. So the question becomes, will the robust ...

Posted in Real Estate News

Can I List My House On The Multiple Listing Service Without A Real Estate Agent?

  July 1, 2010 – 7:28 am

Many sellers of Canadian real estate wonder, "Can I list my house on the Multiple Listing Service without a real estate agent?" In the past, listings on the MLS were the exclusive domain of full-service real estate brokers who charged 6% commission on the sale of a home. During the spring of 2010, the Canadian Real Estate Association (CREA) relaxed its strict regulation of the behemoth MLS, opening the network to increased competition. Sellers still need a broker to complete their listings on MLS, but they now may pay the agent a flat fee just for that service. Listing on the MLS adds sellers’ listings to major brokers’ websites and to Realtor.com, giving properties global exposure. Real estate brokers still own and control the Canadian Multiple Listing Service, but far more sellers now may gain access to the industry’s oldest, most reliable, and far-reaching listing of properties ...

Posted in Real Estate News

Second Mortgages Explained: What Is A Second Mortgage

  June 30, 2010 – 7:59 pm

A second mortgage is a loan that is given by a lender that is secured against the home itself and is superceded by the first mortgage. Any mortgage that is given out against the owner's equity in the home in addition to the existing mortgage is automatically considered a second mortgage. If an owner is unable to make his debt repayments on his loans and is forced into foreclosure the holder of the second mortgage will not receive any money against their note until the first mortgage has been completely paid out. Being a second mortgage holder is a more risky business model and generally requires the borrower to pay a higher interest rate than they do on their first loan for this increased risk. Key Differences Of A Second Mortgage Second mortgages are usually lent for a shorter period of time (typically less than 15 years) Second mortgages can sometimes require a large ...

Posted in Guides

How To Become A Real Estate Appraiser In Ontario?

  June 30, 2010 – 5:19 pm

Becoming a real estate appraiser in Ontario Canada will involve completing an education course which is approved by the Real Estate Council of Ontario and passing examinations which will determine if you are qualified. Once you have completed the exams satisfactorily you will be presented with a license. Learning the trade is not really difficult but it takes years of experience to be able to judge the value of many items involved in an appraisal. Many of the obligations are concerned with comparisons of other homes in the area but there the comparisons end because each home and neighborhood is different and the present condition of such things as roof, exterior finish, flooring inside the home, and extras such as square footage and age of the home must be taken into consideration before evaluation can be completed and an appraisal submitted. There are real estate appraiser courses that can be ...

Posted in Real Estate News

Vancouver Real Estate: To The Moon Alice!

  June 29, 2010 – 6:30 pm

If you listen to the real estate industry and their spin doctors in the corporate media then markets like Vancouver are not only normal but should be expected to move forever higher in a neverending lovefest of perfection where everyone get's rich and nothing bad ever happens to anyone. Does Anyone Use A Calculator Anymore? Anyone who stops and gives their head a quick shake and actually plugs some numbers into a calculator invariably comes to a different conclusion. The long run "safe" borrowing policy that banks (used to) use is to allow a borrower to leverage no more than 3 times their annual income on a home purchase hopefully with a healthy down payment. The average Vancouver home is now priced at over 7 times the average annual income of families working there trying to afford them. The Vancouver real estate market is in a hot and frothy bubble and ...

Posted in Real Estate News

Home Buyers: Beware The Pumpers

  June 28, 2010 – 5:25 pm

If you get your news from the mainstream media outlets in Canada like most Canadians do then your view of the Canadian real estate market and financial system is a rosy one. With home prices that are near all time records and interest rates at all time lows what could there possibly be to worry about if you were considering buying a home? Pump It Up, It Can't Come Down At least that's what the "pump it up", "house prices only go up" real estate industry would have you believe. Mantra's like "it's different here" and "Canadians don't like leverage" or my personal favorite "Canadian banks didn't need a bailout" are all headlines I am sure you have read repeatedly in the past 18 months if you have researched the real estate industry to any degree. The latest home sales figures are in and for the first time in a long ...

Posted in Real Estate News

Condos vs Homes : How To Make The Right Decision?

  June 28, 2010 – 9:53 am

Whether you have a comprehensive life plan or just a rough sense of direction, you surely have some idea where buying a home fits in the bigger picture of your expectations and hopes. For a single professional working long hours to lay the foundation for her career, a condominium represents a practical, prudent choice—low maintenance, just the right space, and considerable tax advantage, plus steady gains in value and equity. The condo versus house decision correlates and becomes more complicated with age: Professionals in their twenties and early thirties wisely can use condominiums as the cornerstones of their wealth, the “buy and hold” assets in their portfolios, and they ought to plan on keeping their condos as income properties even after they buy single-family homes. Similarly, newlyweds with only vague plans for children can use investment in a condominium as means for saving the down-payment on a larger ...

Posted in Real Estate News

Where Should I Invest in Real Estate Market in Canada?

  June 23, 2010 – 9:46 pm

Where should I invest in real estate market in Canada? If you are looking to invest in real estate in Canada and hoping to make a profit, whether you live there or not, it is advisable to study the market first and perhaps attend a seminar to gather information on where and when to purchase land in Canada. If you are in the market with hopes of selling or are deciding whether you want to buy there is much to learn in order to be successful. For every ten millionaires in Canada at least seven of them have made most of their money by investing in the real estate market in Canada. It is a matter of timing, buying in the right location, and grabbing up properties when the price is right. What to buy? Condo, apartment, home, business? Whatever your intentions you need to be prepared for all the little details involved in ...

Posted in Real Estate News

Is Condo Market In Canada Still Strong?

  June 22, 2010 – 7:27 am

Is the condominium market in Canada still strong? Yes, for at least the last five years, Canadian condominium buyers have generated robust growth in the market, and experts predict the market will remain strong. Especially in Vancouver and Toronto, demand for condominiums as investment properties has driven-up prices and sustained a sellers’ market. Not surprisingly, the Olympics set-off a boom in British Columbia real estate, showing the world both the landscape’s beauty and the people’s congeniality. Values of resort properties have soared, increasing the value of all B.C. properties. In the Toronto area, the overheated market will cool during the summer of 2010, because developers will make thousands of units available for pre-sale. For the first time in years, the supply of Toronto condominiums almost will reach equilibrium with demand, stabilizing prices and giving buyers more purchasing power. Experts predict that investors and speculators ...

Posted in Real Estate News

Who Are The Buyers in Toronto’s Booming Condo Market?

  June 21, 2010 – 11:43 pm

Who are the buyers in Toronto’s booming condo market? Today the “hot condo” buying business is found in Toronto and business is booming! Many purchasers are shopping for bargains to simply hold a while and then resell, but today more and more people are deciding to stay in the beautiful and progressive city on Lake Ontario’s northern shore and just minutes north of Niagara Falls. In time past condominiums were purchased primarily as a stepping block toward buying ones first home, mostly because they were affordable and easy to resell. But the recent trend in rising prices has seen the condo business as a booming enterprise with homes appreciating significantly over the past few years. It makes good sense to invest in a Toronto condo, and even better sense to move in and remain there. So much to see so much to do in Toronto The Greater Toronto Area has so much to ...

Posted in Real Estate News

Mortgage Rates For Monday June 21, 2010

  June 21, 2010 – 8:47 am

Rates: Fixed Rate Closed: 1yr 2.64% 2yr 3.15% 3yr 3.49% 4yr 4.29% 5yr 4.19% 3yr and 5yr variable closed (Prime - .60%) = 1.90%

Posted in Real Estate News

Canada’s Real Estate Market – Going Down?

  June 20, 2010 – 7:49 pm

The Canadian real estate market has seen monumental price increases over the past decade but have Canadians reached the limit of how much debt they can service in order to finance these ever increasing home prices? Prices Well Above Long Term Averages Currently across Canada you can find homes priced anywhere from 5 times a families' annual income which is the case in Toronto to the ludicrous Vancouver market where real estate prices have reached over 7 times the average annual income. The long term sustainable average and the general rule of thumb is that you should only leverage 3 times your combined annual income when buying a home. Canadians More Leveraged Then Ever Before Never have Canadians been more leveraged with personal debt in the history of Canada with 1.48 dollars of debt for every dollar of disposable income. Record low interest rates have helped fuel demand for real estate ...

Posted in Real Estate News