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kevin.peter@century21.ca — Thu, 28 Mar 2013 00:00:00 GMT

Clouds gather over Canadian housing market Add to ...

TARA PERKINS

The Globe and Mail

PublishedFriday, Mar. 15 2013, 9:15 AM EDT

Last updatedFriday, Mar. 15 2013, 7:22 PM EDT

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The flicker of optimism that sparked in Canada’s housing market when January sales outpaced December’s has died out, erased by a notable drop in February.

Last month’s declines were significant enough to prompt the Canadian Real Estate Association (CREA) to cut its sales outlook for 2013 on Friday for the third time since last summer.

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The number of homes that changed hands across the country over the Multiple Listing Service in February came in 15.8-per-cent lower than a year ago, and 2.1-per-cent lower than January.

The association is now forecasting 441,500 sales this year, a decline of 2.9 per cent from 2012. Just two months ago, it had said it expected 447,400 sales this year, and in September it had estimated 457,800 – a figure that it had already cut.

The less-than-stellar February data come as Finance Minister Jim Flaherty is in the final stages of preparing the federal budget, to be released on Thursday. Mortgage brokers and other industry players are lobbying for new measures to spur first-time buyers back into the housing market.

But some economists cautioned Friday that the spring selling season, which is just starting, will be a key determinant of the state of the market and that sales might still surprise if low mortgage rates and pent-up demand push buyers back in.

Canadian home buyers “come out of hibernation and start shopping March through July … cooling off once the kids need to be settled in back to school come September,” economists at Bank of Nova Scotia noted in a research note.

Mr. Flaherty must balance his desire to keep house prices and debt levels in check with his desire to keep the economy growing, given that housing has played a significant role in keeping the economy humming since the financial crisis. New data from Statistics Canada on Friday showed that the debt-to-income ratio hit a new high of 165 per cent in the fourth quarter, with mortgage debt growing by $11-billion. But the pace of growth in household debt is slowing.

“A slowing in credit growth is a welcome development for Canadian policy makers who have long been ringing the warning bell about the potential danger that excessive leverage poses to the financial system and, more broadly, the economy as a whole,” Royal Bank of Canada economists wrote Friday, adding that the slowdown “allows policy makers to focus their efforts on supporting the tenuous economic recovery.”

CREA cut its forecast for the national average house price this year, after February’s average sale price came in 1-per-cent lower than a year earlier. It now expects a national average of $362,600, down 0.2 per cent from last year.

The association’s MLS Home Price Index, which seeks to give a more accurate gauge by accounting for changes in the types of homes that are selling, rose 2.7 per cent in February, its smallest increase since the spring of 2011.

“While largely flat at the national level, gains in excess of inflation are still expected in the Prairies and Newfoundland,” it said. British Columbia, Ontario and New Brunswick are expected to post declines in average prices this year.

“Vancouver remains the clear weak spot, with sales down a seasonally adjusted 9.8 per cent in February and 29.2 per cent in the past year,” Bank of Montreal economist Robert Kavcic wrote in a research note.

But some feel that much of Vancouver’s weakness has played out, and some experts are increasingly focused on other parts of the country.

“Alberta and Manitoba are the only provinces where sales are expected to rise in 2013, albeit modestly,” CREA said.

It expects Saskatchewan, Ontario, Quebec and Nova Scotia to see declines in year-over-year sales that are greater than the national average, while the year-over-year decline in British Columbia, New Brunswick, and Newfoundland and Labrador is forecast to be below the national average.

British Columbia and New Brunswick saw their markets weaken in early 2012, while markets in most of the country were strong, mitigating the relative size of year-over-year declines.

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...Montreal, Regina & Real Estate common ground...

kevin.peter@century21.ca — Thu, 31 Jan 2013 00:00:00 GMT

Montreal, Regina to lead value gains in 2013 Written by Vernon Clement Jones

Property investors in Regina and Montreal may be the envy of Canada by year's end, if only in terms of value appreciation, suggests a new market report.

“Canada is a realm of sizable, fairly independent regional economies,” said Royal LePage President and CEO Phil Soper in releasing the report. “Some housing markets, such as those in Alberta and Saskatchewan, are poised to expand significantly in 2013.”

Actually, in terms of major Canadian markets, Saskatchewan’s capital city should trounce its Alberta counterpart, with average home prices about 4 per cent higher than where they stood at the end of 2012, according to the report. Calgary prices will also rise, but by a more meager 2.5 per cent. Edmonton should see an increase of 0.6 per cent.

The Regina gains – buoyed by low inventory and strong employment -- will likely be matched by those in Montreal, where “at the end of 2013, average house prices … are forecast to be 3.8 per cent higher than 2012.”

Montreal’s performance is largely owing to a market increasingly skewed to the higher end as first-time buyers struggle to meet new mortgage rule requirements.

Still, the price forecast for the Quebec city should well surpass the national average being floated by Royal LePage. It’s pegging that at 1.0 per cent higher than the 2012 figure and reflects the falling prices in Vancouver.

“We will see a decline in unit sales and a flattening of home prices in our largest urban markets of Vancouver and Toronto,” said Soper, “and that will have a significant dampening effect on reported national averages.”

But, investors are likely to see that as a short-term phenomenon and not the more permanent trend that would spur a wholesale move to Montreal and Regina markets.

Young curiousity for financial knowledge in real estate

kevin.peter@century21.ca — Sat, 01 Dec 2012 00:00:00 GMT

70% of young Canadians want more financial information about purchasing a home

Published November 26, 2012 Uncategorized Leave a Comment

Ottawa, ON, November 26, 2012 – Consumers have a new tool to help navigate the complexities and financial implications of purchasing a home. Earlier today, The Canadian Real Estate Association (CREA), and the Financial Consumer Agency of Canada (FCAC) launched the Homebuyers’ Road Map. The Road Map is available on CREA’s website at crea.ca.

In a recent Nanos Research survey¹ for CREA, more than 63% of Canadians indicated a “major need” for more information about the financial details of buying a home. That figure rose to 70% for respondents between the ages of 18 and 29.

“As REALTORS®, we appreciate that young Canadians and first-time homebuyers are craving more information about the financial details required to purchase a home. The purpose of the Homebuyers’ Road Map is to empower consumers with the knowledge, skills and confidence to make responsible financial decisions about one of the largest purchases they will ever make,” said Gary Simonsen, CREA’s CEO. “We’re proud to have collaborated with the Financial Consumer Agency of Canada to develop this guide.”

Launched to coincide with Financial Literacy Month, the Homebuyers’ Road Map is a guide which will help Canadians better understand the home buying process as well as appreciate the importance of negotiating with lenders and researching government programs.

“Helping Canadians plan for the future, make sound decisions and ensure the financial security of their loved ones are essential in this increasingly complex world,” said Shelly Glover, Parliamentary Secretary to the Minister of Finance.

“Buying a home involves a number of steps and many buyers need some help in understanding the various options available. In order to make the decision that matches their own circumstances and goals, consumers need some money know-how — which is what financial literacy really is,” added Ursula Menke, Commissioner of the Financial Consumer Agency of Canada (FCAC). “This guide will help people make the right decision, and adds to the information on mortgages, loans and banking available on our website, itpaystoknow.gc.ca.”

To access the Homebuyers’ Road Map, and to find out how a REALTOR® can help, please visit crea.ca and click the Buying or Selling? tab.

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ABOUT CREA

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 106,000 REALTORS® working through more than 100 real estate Boards and Associations.

70% of young Canadians want more financial information about purchasing a home

Published November 26, 2012 Uncategorized Leave a Comment

To access the Homebuyers’ Road Map, and to find out how a REALTOR® can help, please visit crea.ca and click the Buying or Selling? tab.

- 30 -

ABOUT CREA

ABOUT FCAC

With educational materials and interactive tools, the Financial Consumer Agency of Canada (FCAC) provides objective information about financial products and services to help Canadians increase their financial knowledge and confidence in managing their personal finances. FCAC informs consumers about their rights and responsibilities when dealing with banks and federally regulated trust, loan and insurance companies. FCAC also makes sure that federally regulated financial institutions, payment card network operators and external complaints bodies comply with legislation and industry commitments intended to protect consumers.

ABOUT FCAC

Going Green

kevin.peter@century21.ca — Sun, 04 Nov 2012 00:00:00 GMT

Easy Ways to "Go Green"

These days, most people want to do their bit to help the environment. Unfortunately, not everyone is willing, or able, to install solar panels on their roof or implement an in-ground heat recovery system. Luckily, there are many smaller things you can do that can make a big difference. Here are some ideas that can help you "go green" easily and inexpensively. Get a recycling bin and learn how to use it. Most jurisdictions have a recycling program. You may be able to get a rebate on your recycling bin or even get it for free. Keep a list of items that can be recycled on your fridge door, so that everyone in the family can participate. Get a kitchen compost bin. Find out if your jurisdiction has a compost pick-up program. If they do, get a kitchen compost bin. Composting can reduce landfill waste by as much as 32%. Use energy-saving light bulbs. Low energy light bulbs have come a long way in recent years. Their consistent glow and brightness now rival their incandescent counterparts. By replacing regular 40-watt bulbs with energysaving 8-watt bulbs, you could save nearly 50% of the electricity you used for lighting. Results may vary by brand. Shop for local produce. Many grocery stores and supermarkets offer produce – fruits, vegetables, – that are grown within a 100 mile radius. The short transportation distance, means significantly less fossil fuel is required to get the produce delivered to your local store. Keep in mind that some non-local produce, such as apples in the off-season, often need to be transported thousands of miles. Let nature do the work. As an alternative to air conditioning, open windows and block out the passive heat gain from the sun with curtains. Do the opposite in winter. Strategically using curtains and windows can lower your energy bill by as much as 20%. As you can see, you don't have to do much to have a "greener" home. Just a few little changes can make a big difference.