A market analyst with Canada Mortgage and Housing Corp. says the clouds hanging over Red Deer’s residential real estate market are dispersing.
Regine Durand recently presented a local market outlook to housing industry officials in Red Deer.
Speaking to the Advocate this week, she said a theme of her message was that conditions will improve in 2010.
“We’re going to enter into a new cycle, starting next year.”
Red Deer, said Durand, has undergone three economic cycles since 1988: from 1988 to 1995, 1996 to 2000 and 2001 to 2007. Each brought growth in employment and residential construction starts.
She produced a graph that showed the inventory of new, single-detached homes in Red Deer is declining, with the current count of approximately 66 such homes likely to be absorbed in about 49 days. In the case of new, semi-detached homes, the inventory was down to seven in May — a year-over-year decline of 73 per cent.
This should spur builders to increase construction activity.
“They’re going to want to start replenishing their stock next year.”
Durand also foresees increased volumes on the resale market.
“Next year, we’re going to see higher sales because prices have stopped going up on the resale market, and with lower mortgage rates, mortgage payments have dropped.”
She pointed out that from 1998 to 2005, the cost of home ownership was comparable to the cost of renting similar accommodation. But that situation started to change in 2006, and by 2007 the annual carrying cost of a condominium was $542 more than rent for a two-bedroom apartment.
This gap decreased to $445 last year, and continues to narrow. That should draw more people onto the housing market and increase sales.
“They’re going to make the jump to owning.”
In fact, if the latest CMHC forecast of 3,770 home resales in Central Alberta in 2010 holds true, it will be the fifth busiest year ever in the region (behind 2007, 2006, 2008 and 2005).
Durand also described a change in the ratio of high-priced to low-priced homes in recent years.
Single-detached homes selling for more than $250,000 on the Red Deer market have increased from 46 per cent in 2006, to 80 per cent in 2007 and 97 per cent in 2008. The demand for those higher-priced homes helped pull up the average selling price.
Durand noted that this year more lower-priced homes, selling for $100,000 to $174,000, are being offered by builders.
“These products are available again.”
Durand also described a change in the ratio of high-priced to low-priced homes in recent years.
Single-detached homes selling for more than $250,000 on the Red Deer market have increased from 46 per cent in 2006, to 80 per cent in 2007 and 97 per cent in 2008. The demand for those higher-priced homes helped pull up the average selling price.
Durand noted that this year more lower-priced homes, selling for $100,000 to $174,000, are being offered by builders. Posted by Moishe Alexander. Read more HERE
Thursday, June 18, 2009
Wednesday, June 17, 2009
Co-operative Basis
Posted by Moishe Alexander
The Co-op Act imposes special limitations on non-profit housing co-ops. Key limitations, which must be included in the co-op's articles, are:
- the activities of the housing co-op must be carried out without the purpose of gain for its members;
- upon dissolution and after paying its debts and liabilities, the remaining property of the co-op must be transferred, or distributed among, one or more housing co-ops, non-profit organizations or charitable organizations;
- the co-op may not distribute any of its property or pay any money to its members, unless permitted by the Co-op Act;
- the co-op cannot distribute shares or dividends to its members;
- the co-op may only allocate among or credit its members all or part of the surplus arising from the operations of the co-op in a financial year as a patronage return;
- the co-op may not amend its articles to change from a non-profit housing co-op to any other type of co-operative or corporation. Read more HERE
CMHC Market Outlook
Posted by Moishe Alexander
A strong first half of 2007 will push existing home sales in Alberta toward last year's record, totalling 74,000 transactions. In the summer, a surge in listings has slowed the rate of price growth considerably and buyers have become increasingly resistant to the recent run up in prices. Consequently, sales are now on a downward trend. In the face of weaker migration, this trend will continue in 2008 with sales falling five per cent to 70,000 units. Following a 24 per cent gain in average price in 2007, a flurry of listings and weaker sales will limit price growth in Alberta to seven per cent in 2008, the weakest annual gain in four years .
read more
A strong first half of 2007 will push existing home sales in Alberta toward last year's record, totalling 74,000 transactions. In the summer, a surge in listings has slowed the rate of price growth considerably and buyers have become increasingly resistant to the recent run up in prices. Consequently, sales are now on a downward trend. In the face of weaker migration, this trend will continue in 2008 with sales falling five per cent to 70,000 units. Following a 24 per cent gain in average price in 2007, a flurry of listings and weaker sales will limit price growth in Alberta to seven per cent in 2008, the weakest annual gain in four years .
read more
Now’s the time to buy, says CMHC
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Despite the down draft in the economic winds, the combination of historically low interest rates, reduced pricing and government incentives have convinced a majority of Canadians that now is a good time to purchase a home, according to the 2009 Mortgage Consumer Survey from Canada Mortgage and Housing Corp.
The study found about 90% of recent home purchasers believe homeownership is a good long-term investment and 70% think now is a good time to purchase a home.
Canadians also demonstrated a sound understanding about the mortgage process and how their lenders assess eligibility, with 86% of respondents aware the level of total housing and other monthly payments should generally not exceed 40% of gross household income, says Francois Blouin, director, insurance products and strategic direction at CMHC.
“Given the current economy, this study indicates Canadians continue to be optimistic about homeownership and are astute mortgage consumers,” says Blouin.
“Our results reaffirm what we have seen in previous surveys — when it comes to their mortgages, Canadians are informed and manage their debt prudently.”
The survey is supported by recent activity in the Calgary housing market.
MLS sales in May reached 1,584, 16% higher than May 2008 and the first year-over-year increase since September.
About 70% of sales were under $400,000, lending to speculation first-time buyers are re-entering the market after being forced to the sidelines by high prices.
“A pent-up demand has been building, with many first-time home buyers now taking advantage of affordable prices, record low interest rates and federal government incentives,” says Bonnie Wegerich, president of the Calgary Real Estate Board.
In the new home market, starts in May reached 480, the highest monthly total for the year and included 382 single-family starts, about 19% off last May’s starts, and the smallest year-over-year gap this year.
Builders are offering exceptional prices and incentives and as a group say they are also seeing more first-time buyers.
It would appear starts for June and July will be strong — April building permits issued by the City of Calgary included 478 for single-family homes, while May’s permits included 178 for single-family homes.
Posted by Moishe Alexander to see more click here
Tuesday, May 19, 2009
Alberta Real Estate Statistics collected and compiled by Moishe Alexander the CEO of the CFC
Residential Units Sold
Sales activity on the Edmonton Multiple Listing Service® increased in April as compared to last month and April 2008. There were 3,019 residential properties listed in April with sales of 1,843 (up 33.6% from last month and 1.1% from April 2008).
The average price of single family homes in the Edmonton area was up 1% from March but, at $353,386, was still 8.5% below the last April price of $386,033. Condo prices were up 2.4% from last month to $236,020 while duplex/rowhouse prices were up 5.2% at $291,068.
“Increased sales activity is evident in most real estate offices and some REALTORS are reporting multiple offers on select properties,” said Charlie Ponde, president of the REALTORS Association of Edmonton. “However, inventory is still relatively high and sellers should price their properties aggressively to attract offers.”
The number of residential properties available through the MLS System on April 30 was 7,539 – up 1% from last month but well below the glut in April last year when there were 10,606 properties available. The year-to-date sales-to-listing ratio is just 46% but the April S/L ratio of 61% is an indicator of increased activity. Average days-on-market in April was 51 – a number last seen in March 2008.
“REALTORS are optimistic about the Edmonton market,” said Ponde. “In-migration figures are positive, retail sales in Alberta are still higher than the rest of the country and unemployment figures are lower than other parts of Canada. First-time buyers are entering the market because of historically low interest rates and renovation incentives are encouraging move-up buyers to consider relocation.”
Total sales through the MLS System for the month were valued at $635 million with a year-to-date total of $1.75 billion. Total YTD sales value is down 23% from the same time last year but sales are off by just 16%.
SPRING BRINGS BOOST TO CALGARY’S RESIDENTIAL REAL ESTATE MARKET
Calgary, May 1, 2009 - MLS sales activity of single family Calgary metro homes was 1,290 in the month of April 2009, showing an increase of 19 per cent from 1,086 sales in March 2009, according to figures released by the Calgary Real Estate Board (CREB). This was a decrease of 5 per cent from April 2008, when single family home sales were 1,363. The number of condominium sales for the month of April 2009 was 579, an increase of 30 per cent from the 446 condominium transactions recorded in March 2009, and a decrease of 0.3 per cent from April 2008, when 581 condominiums changed hands.
"Spring is giving new life to the residential real estate market," said Calgary Real Estate Board President, Bonnie Wegerich. "Affordable pricing and low interest rates are drawing buyers back to the market."
"In particular we are finding more and more first time home buyers taking advantage of great inventory and very low interest rates. We expect spring sales activity will also get a boost from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers' Plan and the First Time Buyer Tax Credit," added Wegerich.
The average price of a single family Calgary metro home in April 2009 was $426,311, showing an increase of 1 per cent from March 2009, when the average price was $420,354, and showing a decrease of 10 per cent from April 2008, when the average price was $474,564. The average price of a Calgary metro condominium was $277,953, showing a 2 per cent decrease from March 2009, when the average price was $284,056, and a decrease of 11 per cent over last year, when the average price was $312,586.
Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.
"The average price for home sales remains below levels reached one year earlier, but year-over-year declines are contracting," said Wegerich. "Our inventory also continued to decrease in April, which is helping to firm up the balance of supply and demand," added Wegerich.
Single family Calgary metro new listings added for the month of April totaled 2,010, down just 1 per cent from the 2,023 new listings added in March 2009, and showing a decrease of 40 per cent from April 2008, when 3,377 new listings came to the market. Calgary metro condominium new listings added in April 2009 were 967, up 7 per cent from March 2009, when the MLS® saw 903 condo listings coming to the market. This is a decrease of 35 per cent from April 2008, when condominium listings were 1,493.
The median price of a single family Calgary metro home in April 2009 was $380,000, showing an increase of 1 per cent from March 2009, when the median price was 375,000, and down 10 per cent from April 2008, when the median price was $420,000. The median price of a condominium in April 2009 was $251,000, down 3 per cent from March 2009, when the median was $260,000, and down 13 per cent from April 2008, when the median price was $290,000.
All Calgary metro MLS® statistics include properties listed and sold only within Calgary's city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.
"Undoubtedly this market has been challenging for both buyers and sellers, but the improvement in recent months is an encouraging sign," said Wegerich. "There's more confidence in the housing market today than at the end of 2008.
Prices are stabilizing, inventory is declining and the number of new listings is leveling--these are all signs that a balanced market is on the horizon." CREB is a professional body of 5,200 licensed brokers and registered associates, representing 252 member offices. The Board does not generate statistics or analysis of any individual member or company's market share.
Central Alberta resale housing market moderates in March
The local MLS resale housing market showed signs of stabilizing in March 2009, with home sales activity in the area served by the Central Alberta REALTORS Association reaching a six-month high.
According to statistics released by the Association, there were 292 MLS home sales in March 2009. While this remains 23 per cent below year-ago levels, the decline in activity was smaller than those posted in each of the previous four months.
The dollar value of MLS home sales amounted to $77.1 million in March 2009, a decline of 28 per cent year-over-year.The local market trends mirrored those for the entire province. MLS home sales activity in Alberta was down 23 per cent year-over-year in March 2009. The dollar volume of MLS home sales in Alberta in March 2009 fell 31 per cent from year-ago levels.
The MLS median residential price for home sales in March 2009 was $260,000. This stands eight per cent below the median value of $283,000 in March 2008.
Alberta Real Estate Statistics collected and compiled by Moishe Alexander the CEO of the Canadian Funding Corporation.
- April 2009 residential units show a decrease of 17% when compared to April 2008.
- A total of 14,535 residential units have been sold province-wide from January to the end of April.
- The value of total property sales for the year ending April 2009 is $5,221,559,780 (down 34% from the same period last year).
- Residential properties represent 92% ($4,777,702,535 of total property sales for the year ending April 2009).
Sales activity on the Edmonton Multiple Listing Service® increased in April as compared to last month and April 2008. There were 3,019 residential properties listed in April with sales of 1,843 (up 33.6% from last month and 1.1% from April 2008).
The average price of single family homes in the Edmonton area was up 1% from March but, at $353,386, was still 8.5% below the last April price of $386,033. Condo prices were up 2.4% from last month to $236,020 while duplex/rowhouse prices were up 5.2% at $291,068.
“Increased sales activity is evident in most real estate offices and some REALTORS are reporting multiple offers on select properties,” said Charlie Ponde, president of the REALTORS Association of Edmonton. “However, inventory is still relatively high and sellers should price their properties aggressively to attract offers.”
The number of residential properties available through the MLS System on April 30 was 7,539 – up 1% from last month but well below the glut in April last year when there were 10,606 properties available. The year-to-date sales-to-listing ratio is just 46% but the April S/L ratio of 61% is an indicator of increased activity. Average days-on-market in April was 51 – a number last seen in March 2008.
“REALTORS are optimistic about the Edmonton market,” said Ponde. “In-migration figures are positive, retail sales in Alberta are still higher than the rest of the country and unemployment figures are lower than other parts of Canada. First-time buyers are entering the market because of historically low interest rates and renovation incentives are encouraging move-up buyers to consider relocation.”
Total sales through the MLS System for the month were valued at $635 million with a year-to-date total of $1.75 billion. Total YTD sales value is down 23% from the same time last year but sales are off by just 16%.
SPRING BRINGS BOOST TO CALGARY’S RESIDENTIAL REAL ESTATE MARKET
Calgary, May 1, 2009 - MLS sales activity of single family Calgary metro homes was 1,290 in the month of April 2009, showing an increase of 19 per cent from 1,086 sales in March 2009, according to figures released by the Calgary Real Estate Board (CREB). This was a decrease of 5 per cent from April 2008, when single family home sales were 1,363. The number of condominium sales for the month of April 2009 was 579, an increase of 30 per cent from the 446 condominium transactions recorded in March 2009, and a decrease of 0.3 per cent from April 2008, when 581 condominiums changed hands.
"Spring is giving new life to the residential real estate market," said Calgary Real Estate Board President, Bonnie Wegerich. "Affordable pricing and low interest rates are drawing buyers back to the market."
"In particular we are finding more and more first time home buyers taking advantage of great inventory and very low interest rates. We expect spring sales activity will also get a boost from the federal government incentives announced in the last budget, including the increase in the maximum withdrawal allowed under the Home Buyers' Plan and the First Time Buyer Tax Credit," added Wegerich.
The average price of a single family Calgary metro home in April 2009 was $426,311, showing an increase of 1 per cent from March 2009, when the average price was $420,354, and showing a decrease of 10 per cent from April 2008, when the average price was $474,564. The average price of a Calgary metro condominium was $277,953, showing a 2 per cent decrease from March 2009, when the average price was $284,056, and a decrease of 11 per cent over last year, when the average price was $312,586.
Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.
"The average price for home sales remains below levels reached one year earlier, but year-over-year declines are contracting," said Wegerich. "Our inventory also continued to decrease in April, which is helping to firm up the balance of supply and demand," added Wegerich.
Single family Calgary metro new listings added for the month of April totaled 2,010, down just 1 per cent from the 2,023 new listings added in March 2009, and showing a decrease of 40 per cent from April 2008, when 3,377 new listings came to the market. Calgary metro condominium new listings added in April 2009 were 967, up 7 per cent from March 2009, when the MLS® saw 903 condo listings coming to the market. This is a decrease of 35 per cent from April 2008, when condominium listings were 1,493.
The median price of a single family Calgary metro home in April 2009 was $380,000, showing an increase of 1 per cent from March 2009, when the median price was 375,000, and down 10 per cent from April 2008, when the median price was $420,000. The median price of a condominium in April 2009 was $251,000, down 3 per cent from March 2009, when the median was $260,000, and down 13 per cent from April 2008, when the median price was $290,000.
All Calgary metro MLS® statistics include properties listed and sold only within Calgary's city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.
"Undoubtedly this market has been challenging for both buyers and sellers, but the improvement in recent months is an encouraging sign," said Wegerich. "There's more confidence in the housing market today than at the end of 2008.
Prices are stabilizing, inventory is declining and the number of new listings is leveling--these are all signs that a balanced market is on the horizon." CREB is a professional body of 5,200 licensed brokers and registered associates, representing 252 member offices. The Board does not generate statistics or analysis of any individual member or company's market share.
Central Alberta resale housing market moderates in March
The local MLS resale housing market showed signs of stabilizing in March 2009, with home sales activity in the area served by the Central Alberta REALTORS Association reaching a six-month high.
According to statistics released by the Association, there were 292 MLS home sales in March 2009. While this remains 23 per cent below year-ago levels, the decline in activity was smaller than those posted in each of the previous four months.
The dollar value of MLS home sales amounted to $77.1 million in March 2009, a decline of 28 per cent year-over-year.The local market trends mirrored those for the entire province. MLS home sales activity in Alberta was down 23 per cent year-over-year in March 2009. The dollar volume of MLS home sales in Alberta in March 2009 fell 31 per cent from year-ago levels.
The MLS median residential price for home sales in March 2009 was $260,000. This stands eight per cent below the median value of $283,000 in March 2008.
Alberta Real Estate Statistics collected and compiled by Moishe Alexander the CEO of the Canadian Funding Corporation.
Thursday, January 15, 2009
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