Who's Saying What About Real Estate & The Economy - Sept. 11,2010 edition
Canada's Real Estate Market: No Crash
“The housing market has lost its lustre. No doubt about it,” said Mario Lefebvre, the centre’s director for municipal studies. “However, this will not lead to a free fall for Canada’s housing market. This country will not experience home-price declines to the tune of what we have witnessed in the United States over the past few years.” National Post
Canada's housing market to slow, not stop: Conference Board (CBC)
“because valuations and activity in Canada's residential market grew at a blistering pace over the past decade and were due for some sort of short-term decrease — commonly referred to as a correction.”
Housing market not in free fall, report argues (National Post)
The 2.4% decline, to a monthly rate of $3.5-billion, follows similar data showing housing starts and resale activity in Canada declining for months now, along with reports arguing that Canada’s housing market is a bubble waiting to burst.
Not so, the Conference Board of Canada argued in a report Wednesday.
Housing market not in ‘free fall,’ says Conference Board (Toronto Star)
Lefebvre said there is a likelihood that Canada will see a pause in price growth, “with possible marginal declines in a few markets.”
A new harmonized sales tax in Ontario and British Columbia, lower consumer confidence because of the European debt crisis, and a jobless recovery in the U.S. are having an impact on housing sales in Canada, said the board.
Fears of a Canadian housing market crash overblown (RBC pdf file)
Housing affordability – the best indicator of underlying market tensions, in our view – has deteriorated in recent quarters but remains much better than it was in the late 1980s and early 1990s when bubbles clearly caused the Canadian market to meltdown in the years that followed.
New Home Prices and Starts Decline
A couple of reports regarding the new housing market this week. Statistics Canada's new house price index slipped 0.1% month over month in July, the first time in over a year that the index has dropped. According to a Canada Mortgage and Housing Corporation report, annualized housing starts declined 3% in August compared to July.
New home prices drop in July (Toronto Star)
“Cooling housing markets are a big part of why domestic economic activity is slowing in Canada,” said Pascal Gauthier, senior economist with TD Bank. This was reflected in the existing home market with the typically lagged spill over effect into the new home market.”
Housing prices and starts decline (Globe and Mail)
Statistics Canada reported Thursday that its new housing price index fell for the first time in 13 months, declining 0.1 per cent in July from its level in June. That reversed what was seen between May and June, when new house prices rose 0.1 per cent.
Canada July new housing prices edge lower (Reuters)
The top contributors to the monthly decrease were cities in British Columbia and Ontario -- Vancouver, London, Sudbury and Thunder Bay. Prices fell on a monthly basis in seven of the 21 cities surveyed, fell in three and were flat in 11.
Year-over-year, the new home price index was up 2.9 percent in July, following a 3.3 percent rise in June.
Bank of Canada Raises Interest Rates
The Bank of Canada raised its key interest rate by a quarter percent this week pushing the target for the overnight rate to one percent. The Globe and Mail's Rob Carrick has a good article on why rising rates haven't flattened the housing market.
Why rising interest rates haven’t flattened the housing market (Globe and Mail)
“there are two trends that offset higher carrying costs for variable-rate mortgages. One is that fixed-rate mortgages, notably in the popular five-year term, have been coming down in recent weeks and are now as low as 3.59 per cent. That’s a fabulous rate, by the way”.
Carney Says Bank of Canada Will Be `Careful' on Rates With U.S. Slowing (Bloomberg)
Bank of Canada Governor Mark Carney said today that downside risks to the global recovery are “non- negligible” and the central bank will be “careful” in considering the implications of slower U.S. growth when deciding whether to raise interest rates further.
BOC's Carney: U.S. Slowdown Has Implications For Canada, Policy (Wall Street Journal)
-If the U.S. economy slows further, it will have direct implications for Canada and Canadian monetary policy, Bank of Canada Governor Mark Carney said Friday.
"I think the important thing to remember is that we deal with our circumstances. The U.S. has important input to that, and we are disciplined by having to achieve our 2% inflation target,"
Okanagan Shuswap Real Estate
The Friday File: Market Synopsis September 10, 2010
a look at the stats – new listings, extended listings, solds price changes etc over the week in the Okanagan Mainline Real Estate territory.
CLUE: August Market Statistics for North Okanagan (Vernon BC and area) real estate
A look at the residential real estate market sectors: Apartments, Townhomes, Building Lots and Residential homes. Results for August 2010
How’s the Market? – Key Performance Indicators Updated for North Okanagan Real Estate.
We look at Inventory, Sales, Absorption rates, and days on the market, average and median sale prices in North Okanagan Real Estate from 2000 forward.
Twenty eight properties sold in North Okanagan Real Estate between August 30 and September 5 totalling a value of $11,214,500 traded. Prices ranged from $82,500 to $1,850,000. Download the property details from our site.
What’s For Sale in North Okanagan Real Estate?
Check out our Customer Portal Page as it evolves. Constantly updated preset searches. More added all the time.
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Brell ~ Brenda Ellis REALTOR ®
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