SOARING IN APRIL

Calgary’s housing market soars in April
MLS sales up 26% from a year ago
By Mario Toneguzzi
Calgary Herald May 1, 2012

CALGARY — It was a very busy April for Calgary’s housing market.

According to the Calgary Real Estate Board, overall residential MLS sales in the city of 2,200 for the month were up 26.07 per cent from April 2011 and the average sale price of $429,388 increased by 1.95 per cent from last year.

Carrie Pepper was one of the many caught up in the April activity as she bought a condo in the Thorncliffe-Greenview neighbourhood.

“I wasn’t even planning on buying. I was looking for two months maybe. I found a lot of places that were good prices,” said Pepper who looked at about 10 properties.

“I didn’t want to rent because it’s so expensive. So why not buy?”

She said continued low interest rates played a role in her decision.

“That was huge. This is my first time buying. I know it’s a good time to buy right now,” added Pepper.

Apparently many others felt the same as Pepper.

In the single-family home category, CREB said sales of 1,582 were up 30.64 per cent from last year and the average sale price rose by 0.88 per cent to $483,519.

In the condo apartment category, there were 351 MLS sales, up 13.23 per cent from last year but the average sale price dipped by 5.76 per cent to $267,931.

And in the condo townhouse category, sales rose by 19.20 per cent to 267 with the average sale price increasing by 8.31 per cent to $320,912.

“What we saw in April was strong demand coupled with less good inventory. We also saw lots of multiple offers,” said Cody Battershill, a realtor in Calgary with RE/MAX House of Real Estate.

"I think that everyone’s realizing the world didn’t end and in fact on most metrics we are back to or stronger than most of the previous peaks achieved in the last cycle. Some people think we could be at the beginning of another strong positive economic cycle while others would still encourage cautious optimism. Regardless, living in Calgary means enjoying high economic growth, job growth, income growth and migration.”

He said the economic fundamentals in Calgary are strong and will be for the foreseeable future.

Ann-Marie Lurie, CREB’s chief economist, said the growth in full-time employment, combined with improving migration levels, is translating into improved demand for housing.

“While sales growth does seem exceptionally strong, it is important to keep in perspective that the sales activity in Calgary is returning to levels more consistent with the long-term average,” she said.

CREB said its MLS Home Price Index benchmark price for single-family homes was $449,500 in April, up 7.41 per cent from a year ago. The benchmark price for condo apartments was up 0.77 per cent to $248,300 and it rose by 4.58 per cent in the condo townhouse category to $294,500.

CREB says its new home price index measures how typical properties are valued in the market rather than relying on average and median prices.

It is calculated using a statistical model that estimates prices based on several factors.

In the city, total new listings in the MLS market dipped by 0.49 per cent in April to 3,238 and active listings were off by 16.67 per cent to 5,270.

“While sales activity and the level of new listings continue to remain below long-term trends, the spring market is definitely on the rise over the previous year,” said Bob Jablonski, CREB’s president. “As confidence in the local housing market continues to build, we anticipate a rise in demand, followed by improved listings from those waiting to see some price appreciation prior to listing their home.”

CLIMBING HIGHER!

Canadian house resale prices climb higher
By Eric Lam
Financial Post · Dec. 15, 2011

Canada’s housing market is still chugging along steadily as sales activity nudged higher and prices continued to climb in November, data from the Canadian Real Estate Association said Thursday.


Sales activity rose a seasonally adjusted 0.5% in November, compared with the month before, as about 35,000 houses changed hands.

The national average price increased 4.6%, but that is the smallest increase since January.

Year-to-date sales remained in line with 10-year averages as 432,048 homes have been resold so far in 2011, up 2.1% from year-ago levels.

The sector is showing some signs of slowing down, however, as the number of newly listed homes declined 3.4% between October and November.

That said, actual national home sales figures (not seasonally adjusted) in November actually moved 7% above the 10-year average, the fourth-highest level on record for the month.

“National sales activity picked up late last year, and November’s results suggest that a similar trend may be playing out again this year,” Gregory Klump, chief economist with CREA, said in a release.

Interest rates are expected to remain low for the foreseeable future, so the housing sector will be closely watched for signs of excess, he said.

“That said, current trends for resale housing and new home construction suggest that tightened mortgage regulations are working as intended and fostering economic stability,” he said.

Photo By: Travis Atwood

THE LOGICAL SONG

Housing market to continue to defy logic
Garry Marr
Financial Post,  Dec. 6, 2011

Even one of Canada’s leading real estate companies agrees the rising housing market may not appear to make much sense.

But appearances are deceiving and Re/Max says both sales and average prices will continue to climb in 2012.

“Canadian residential real estate defied conventional logic and outperformed expectations in 2011,” the company said in its year-end report on the market.

Re/Max expects 2011 to finish with prices up 7% and the average home across the country selling for $363,000. The market won’t be as robust in 2012 but consumers can still expect another 2% jump in prices.

Sales figure for 2011 are forecast to climb by 3% from a year earlier with 460,000 homes having changed hands by year end. For 2012, expect less than a 1% increase in activity with only an additional 4,500 sales.

“The Canadian housing market has demonstrated tremendous resilience in recent years but 2011 stands out,” said Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada. “Instead of responding to economic concerns both here and abroad with a retreat in sales and prices, residential real estate markets actually experienced an upswing in the volatile third and fourth quarter.”

Re/Max looked at 26 markets across the country and predicts 23 will show an increase in average price for the year. Sales were up in 22 of those 26 markets. The company says 81% of markets studied will see price increases in 2012.

Among the reasons cited for the Canadian housing market’s continued strength against the odds has been population growth which has gone up by 11% since 2000. Re/Max notes by 2031, the country will have 42 million people.

“Population growth and immigration are major factors expected to prop-up housing demand and household formation in the coming years,” says the company.

Condominiums are expected to continue to garner a growing share of the housing market with investment and income-producing properties in high demand. Low vacancy rates are said to have driven those markets in 2011 and those conditions are expected to continue.

Photo By: Bru76

WHAT TO KNOW ABOUT THE BOOM

What you need to know about Canada’s booming housing market
By Christine Dobby
November 15, 2011

With sales of existing homes in Canada rising in October to the highest level since January, the Canadian Real Estate Association boosted its forecast for resale activity for 2011.

The industry group released data on October sales activity as well as a revised forecast for the year on Tuesday.

National sales of existing homes increased 1.2% from the previous month, building on a gain of 2.5% in September. Price gains however cooled to 5.5%, the smallest gains since January.

A total of 397,561 resale units have traded hands so far this year, CREA said, up 1.8% from levels in the first 10 months of 2010.

Here’s what you need to know about the booming Canadian housing market:

Ontario leads the way

Third-quarter sales activity in the province was stronger than forecast, while the rest of the country came in broadly in line with expectations, the CREA said.

It was the strength of activity in Ontario that prompted the CREA to boost its annual forecast for 2011 to 1.4%, up from 0.9%.

The industry group now predicts national sales of 453,300 for the year, compared with 446,915 in 2010.

198,000 of 2011′s residential sales are expected to come from Ontario, with Quebec and British Columbia expected to have sales of 77,000 and 76,600, respectively.

Home prices are still up but showing signs of cooling down

CREA kept its national average home price forecast for the year little changed at $362,700. That’s an annual increase of 7.0% compared with $339,049 in 2010.

Prices are expected to remain flat next year, with the CREA forecasting $362,700 again for 2012.

The industry group pointed to moderating prices in Vancouver in the third quarter compared with the first half of the year, with sales of multi-million dollar properties in that city returning to “more normal levels.”

CREA said the national average price in October rose 5.5% from a year earlier to just under $362,899, the smallest increase since January.

The balance of supply and demand is tight but the market remains on solid footing

October’s monthly rise in sales resulted in a slightly tighter balance of supply and demand, but the national housing market remains “firmly rooted in balanced territory,” the CREA said.

The national sales-to-new listings ratio, a measure of market balance, stood at 53.4% in October, up from 52.8% in September.

Low interest rates continue to bolster the market

CREA also revised its forecast for 2012 upward slightly, predicting a smaller easing than previously expected of 0.5% to 451,200 units.

The uptick is largely due to expectations that Canada’s interest rates will stay low until well into 2012, CREA said.

But domestic and global economic headwinds could put pressure on the sector

“A number of factors will keep Canada’s housing market in check as interest rates remain low,” said Gregory Klump, CREA’s chief economist.

He pointed to tightened mortgage regulations, high household debt and slower economic and job growth as possible headwinds.

However, Mr. Klump noted that persistent news of global economic uncertainty has put only minor dents in consumer confidence to date.

“How confidence evolves depends on how global turmoil plays out over the coming months,” he said.