Archive for February, 2010

National resale activity edges down in January

Published February 17, 2010 1 3 Comments
Tags:

OTTAWA – February 17th, 2010 – According to statistics released by The Canadian Real Estate Association, the number of homes sold through the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards declined in January 2010 from the previous month.

Seasonally adjusted national home sales dropped 2.8 per cent from near record levels reported in December. Ontario accounted for about half the national decline. Activity was also down in British Columbia, Alberta, and Manitoba, but reached new heights in Quebec.

Actual (not seasonally adjusted) residential sales activity in January 2010 was up 58 per cent from year ago levels, when national home sales activity reached the lowest level in a decade. Because activity began recovering in February last year, large year-over-year gains are expected to shrink over upcoming months.

The average price of all homes sold through the MLS® Systems of Canadian real estate Boards in January 2010 was $328,537, up 19.6 per cent from one year ago. In January 2009, the average residential sale price fell to the lowest level in almost three years. Year-over-year average price gains are being stretched by weakness one year ago, and are expected to shrink beginning next month.

The price trend is similar but less dramatic for the national weighted average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 14.9 per cent year-over-year basis in January 2010.

The residential average price in Canada’s major markets also climbed 19.6 per cent year-over-year in January. As with the national counterpart, the price trend is similar but less dramatic for the major market weighted average price, which rose 13.1 from January 2009.

Across Canada, the seasonally adjusted number of new listings on Boards’ MLS® Systems edged up three tenths of one percent on a month-over-month basis in January to reach the highest level since November 2008. New listings rose in British Columbia, Alberta and Newfoundland, offsetting declines in other provinces. The actual (not seasonally adjusted) number of new residential listings was up 3.4 per cent from one year ago.

“The resale housing market is becoming more balanced in a number of provinces, including my own province of Saskatchewan,” said CREA President Dale Ripplinger. “A more balanced market is likely to result in smaller price increases going forward, with buyers in less of a rush due to an increase in supply. That said, market conditions vary across Canada, so buyers and sellers are wise to consult with a REALTOR® since they know current conditions in your local market.”

Strong demand for resale homes continues to draw down supply. There were 170,199 homes listed for sale on Boards’ MLS® Systems in Canada at the end of January 2010, a decline of 18 per cent from levels reported for the same month in 2009. Nationally, there were 4.4 months of inventory in January 2010 on a seasonally adjusted basis. This is up slightly from 4.2 months in December.

The actual (not seasonally adjusted) number of months of inventory in January 2010 stood at 6.6 months. This is well below where it stood one year ago (12.8 months), but slightly higher than it was in the month of January in the years 2004 through 2008. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

“January results suggest that the national resale housing market may be past the recent peak,” said CREA Chief Economist Gregory Klump. “One car doesn’t make a parade, so a few more months of results showing a cooling trend will be required before talk of a Canadian housing bubble begins to fade. It could take until the second half of the year before a cooling trend becomes evident, since home buying activity may continue to be accelerated in the first half of 2010 by expected interest rate increases, and by the introduction of the HST in Ontario and British Columbia on Canada Day.”

http://www.crea.ca/public/news_stats/pdfs/media_jan10rpt_e.pdf

(CREA 02/17/10)

CREA SATISFIED WITH CHANGES TO MORTGAGE RULES

Published February 16, 2010 1 1 Comment
Tags:

OTTAWA – February 16th – Following this morning’s announcement by the Federal government, The Canadian Real Estate Association is of the view that the Canadian resale housing market is healthy, and does not require regulatory changes beyond those announced today.

“Banks and governments should be cautious interpreting recent statistics, since comparisons are being distorted by recessionary activity a year ago and the subsequent rebound,” says Gregory Klump, CREA’s Chief Economist. “Current trends reflect the release of pent up demand when buyers moved to the sidelines during the recession. Additionally, the HST in Ontario and British Columbia and coming interest rate increases will likely moderate activity and price gains beginning in the second half of 2010.”

CREA’s analysis of housing activity on the Multiple Listing Service® Systems of real estate boards across Canada has emphasized that a number of temporary factors have been skewing average price comparisons. Its most recent forecast indicates that national activity and average price will decline in 2011.

About The Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

Registrants in any province who become members of organized real estate have an obligation to act in accordance with the REALTOR(R) Code. This Code outlines the accepted standard of conduct for all real estate practitioners who are members of a real estate Board or a Provincial Association.

CREA owns the MLS(R) and REALTOR(R) trademarks, which signify a high standard of service and identify members of CREA.

For further information or to request an interview, please contact:
Alyson Fair, Publicist
The Canadian Real Estate Association
P: 613-237-7111 or 613-884-1460
E: afair@crea.ca

CREA Disappointed By Bureau Tribunal Filing

Published February 9, 2010 1 Leave a Comment

OTTAWA, Ontario – February 8, 2010 – The Canadian Real Estate Association (CREA) learned today that the Competition Bureau filed a Notice of Application with the Competition Tribunal against CREA.

“CREA views the Commissioner’s decision as surprising and disappointing,” said Dale Ripplinger, President of CREA.  “We do not agree with the Bureau’s position that certain CREA rules are anti-competitive, either as a matter of fact or as a matter of law.  CREA’s rules allow for innovative business models and provide a broad range of choice for consumers.”

In good faith, CREA engaged in settlement negotiations with the Competition Bureau for several months in an effort to arrive at a consensual resolution.  Unfortunately, the parties were unable to reach an agreement.  This is very disappointing, since CREA has consistently indicated – right from the outset – that it has always been prepared to work with the Competition Bureau to revise its rules to clarify the way the rules operate.

Last week, CREA advised the Commissioner of Competition that CREA had made the business decision to move forward with rule changes to address the issues raised by the Bureau, whether or not a settlement with the Bureau could be reached.

“In making these clarifications on a proactive basis, CREA believes that it is fully addressing the Competition Bureau’s concerns, while ensuring the accuracy and quality of MLS® information that Canadians have come to trust and REALTOR® compliance with a code of ethics” said Ripplinger.

The Commissioner’s press release states that CREA’s rules restrict consumer choice and prevent innovative business models.  That is simply false.  CREA is disappointed that the Bureau would make this statement in view of the months of discussions about CREA’s rules and CREA’s consistent position that its rules are not intended to and do not restrict any business models.

The real estate industry in Canada is highly competitive and thrives on small businesses with independent agents, brokers and franchises conducting a wide variety of transactions every day. CREA currently has more than 98,000 members operating independently across the country to compete for consumer business, offering a wide array of services and pricing structures.

“CREA’s interest and that of its members is to ensure consumers have choice, that they are protected during one of the most significant transactions they will undertake, and that the integrity of the MLS® system is preserved for the benefit of REALTORS® and the Canadian public” added Ripplinger.

About The Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

For more information, please contact:
Alyson Fair
613-237-7111 or 613-884-1460
Email: afair@crea.ca

Ray Sapiano
613-237-7111 or 613-290-8902
Email: rsapiano@crea.ca

Resale housing forecast extended to 2011

Published February 8, 2010 1 1 Comment

OTTAWA – February 8, 2010 – The Canadian Real Estate Association has revised its forecast for home sales via the MLS® Systems of Canadian real estate boards in 2010, and extended the forecast to 2011.

With Canadian economic growth rebounding from the recession, the unusually severe decline in sales activity in early 2009 is not expected to recur in 2010.  Annual activity in 2010 is forecast to be well above the previous year’s level as a result.

CREA forecasts national activity will reach 527,300 units in 2010, up 13.3 per cent from 2009. This would represent a new annual record, standing 1.2 per cent above the previous peak in 2007. Low interest rates are expected to boost housing demand in the first half of the year, resulting in strong annual sales growth in nearly all provinces in 2010, led by British Columbia and Ontario.

National home sales activity is expected to remain strong in the first half of 2010, fuelled by low interest rates and homebuyers motivated to avoid the HST before it comes into effect in Ontario and British Columbia.  Over the second half of the year, national activity is expected to trend downward as the last of pent-up demand is exhausted, interest rates begin rising, and the HST comes into effect in Ontario and British Columbia.

Interest rate increases will contribute to weaker national sales activity in 2011.  National home sales activity is forecast to decline 7.1 per cent to 490,100 units in 2011, putting it on par with annual levels reported in 2005 and 2006.

“Although interest rates are expected to rise, they will still be low enough to keep affordability within reach for many homebuyers requiring mortgage financing, and support overall housing demand,” said CREA President Dale Ripplinger.

The national average home price is forecast to climb 5.4 per cent in 2010, reaching a record $337,500, with average price gains forecast in all provinces. The national average price increase will continue to reflect upward skewing from the rebound in activity among Canada’s priciest markets, particularly in British Columbia and Ontario.

The national average price is forecast to ease by 1.5 per cent in 2011. Modest average price gains are forecast for all provinces except British Columbia and Ontario, whose share of national activity is expected to ease. The shift in the contribution made by provinces toward national activity will continue skewing the annual comparison in the national average price in 2011.

The price trend is similar but less dramatic for the weighted national average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national average price is forecast to climb 4.8 per cent in 2010, and remain stable in 2011.

“Improved financial market stability and recovering global economic growth mean that home sales activity in 2010 is unlikely to repeat the dive it experienced in late 2008 and early 2009,” said Chief Economist Gregory Klump.

“Fiscal restraint, a strong Canadian dollar and a subdued inflation outlook point to marginal interest rate increases over the next couple of years, especially if the U.S. economic recovery proves to be weak and protracted,” said Klump.

“The Bank of Canada will need time to gauge the effect of interest rate increases on Canadian economic growth,” Klump said.  “It recognizes that consumer debt burdens are running high, so it will want to gauge the impact of interest rate hikes on domestic demand and overall economic growth. Changes in interest rates impact the economy with a lag, so the timing and magnitude of interest rate hikes will be tricky, given that the Bank expects the private sector to lead economic growth once temporary government stimulus spending expires,” he added.

“The decline and subsequent rebound in sales activity for homes in the upper price spectrum in some of Canada’s priciest markets skewed average prices upward in the second half of 2009 and into 2010. This segment of housing activity in Ontario and British Columbia is expected to ease beginning in the second half of 2010, causing average prices to moderate in those provinces,” said Klump.

“A downward trend in national sales activity combined with an increase in listings will result in a more balanced market. Although builders are understandably more upbeat than they were during the depth of the recession, speculative building will likely continue to be held in check. As a result, while the real estate market will become more balanced, Canada will continue to avoid the massive realignment in housing supply and demand experienced in the U.S.”

CREA Residential Market Forecast:

Residential unit sales forecast 2009 2009 Annual percentage change 2010 Forecast 2010 Annual percentage change 2011 Forecast 2011 Annual percentage change
Canada 465,251 7.7 527,300 13.3 490,100 -7.1
British Columbia 85,028 23.4 101,900 19.8 88,800 -12.9
Alberta 57,786 2.5 63,050 9.1 64,000 1.5
Saskatchewan 10,856 6.5 10,900 0.4 11,050 1.4
Manitoba 13,086 -3.2 14,050 7.4 14,350 2.1
Ontario 195,840 8.2 223,700 14.2 200,300 -10.5
Quebec 79,290 3.3 87,950 10.9 85,450 -2.8
New Brunswick 7,003 -7.3 7,550 7.8 7,700 2.0
Nova Scotia 10,021 -7.8 11,400 13.8 11,500 0.9
Prince Edward Island 1,404 -0.6 1,450 3.3 1,450 0.0
Newfoundland 4,416 -5.9 4,900 11.0 5,050 3.1
Residential average price forecast 2009 2009 Annual percentage change 2010 Forecast 2010 Annual percentage change 2011 Forecast 2011 Annual percentage change
Canada 320,333 5.0 337,500 5.4 332,400 -1.5
British Columbia 465,725 2.4 485,500 4.2 476,600 -1.8
Alberta 341,201 -3.3 357,300 4.7 361,700 1.2
Saskatchewan 233,695 4.1 242,500 3.8 248,500 2.5
Manitoba 201,343 5.8 210,300 4.4 215,300 2.4
Ontario 318,366 5.3 332,700 4.5 326,000 -2.0
Quebec 225,412 4.7 240,500 6.7 249,100 3.6
New Brunswick 154,906 6.3 159,400 2.9 164,200 3.0
Nova Scotia 196,690 3.6 200,900 2.1 204,700 1.9
Prince Edward Island 146,044 4.4 149,900 2.6 153,200 2.2
Newfoundland 206,374 15.6 222,300 7.7 238,900 7.5

NOTE: All statistics contained in this release are obtained through analysis of the MLS® Systems of real estate Boards across Canada.

MLS® Systems are co-operative marketing systems used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

About The Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

Registrants in any province who become members of organized real estate have an obligation to act in accordance with the REALTOR® Code. This Code outlines the accepted standard of conduct for all real estate practitioners who are members of a real estate Board or a Provincial Association.

CREA owns the MLS® and REALTOR® trademarks, which signify a high standard of service and identify members of CREA.

For further information, please contact:

Spencer Callaghan, Communications Officer
The Canadian Real Estate Association
P: 613-237-7111 or 613-884-1460
E: scallaghan@crea.ca

To view the complete release visit: http://www.crea.ca/public/news_stats/pdfs/nationalresidentialforecast2010.pdf

REALTORS® welcome EI benefits for Self-Employed

Published February 1, 2010 1 Leave a Comment
Tags:

Ottawa – February 1, 2010 – On behalf of Human Resources and Skills Development Minister Diane Finley, Rob Moore, Minister of State for Small Business and Tourism, joined today with Canadian Real Estate Association (CREA) CEO Pierre Beauchamp to announce that self-employed REALTORS® can now participate in the Employment Insurance (EI) program.

“From coast-to-coast-coast, a large majority of REALTORS® are self-employed,” says Mr. Beauchamp. “By creating a level playing field within the EI program, many of our members will no longer have to worry about taking time away from their careers to have a baby or care for a family member who is gravely ill.”

Bill C-56, the Fairness for the Self-Employed Act, extends EI benefits for self-employed REALTORS® for:

· maternity benefits (15 weeks maximum), which are available to mothers and cover the period surrounding birth (a claim can start up to eight weeks before the expected birth date);
· parental/adoptive benefits (35 weeks maximum), which are available to biological or adoptive parents while they are caring for a newborn or newly adopted child, and may be taken by either parent or shared between them;
· sickness benefits (15 weeks maximum), which may be paid to a person who is unable to work because of sickness, injury or quarantine; and
· compassionate care benefits (six weeks maximum), which may be paid to persons who have to be away from work temporarily to provide care or support to a family member who is gravely ill with a significant risk of death.

Self-employed Canadians who voluntarily opt in to the EI program are eligible to collect benefits as early as January 1, 2011.

“CREA is thrilled that the Government of Canada listened to REALTORS® and other self-employed Canadians,” says CREA President Dale Ripplinger. “To have this legislation introduced and passed so promptly demonstrates the government’s willingness to help each and every working Canadian.”

“It’s nice to know that REALTORS® now have the choice to balance career and family along with other working Canadians,” adds Bruce Mullett, Chair of CREA’s Federal Affairs Committee. “Real estate transactions contribute $132 billion to the economy and add 202,750 jobs annually to Canada’s economy.”

REALTORS® who opt in to the program will pay the same EI premium rate as salaried employees in their province. They will not be required to pay the employer portion of premiums, which takes into account the fact they will not have access to EI regular benefits. Premiums, and resulting benefits, will be based on income.

About The Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

Registrants in any province who become members of organized real estate have an obligation to act in accordance with the REALTOR(R) Code. This Code outlines the accepted standard of conduct for all real estate practitioners who are members of a real estate Board or a Provincial Association.

CREA owns the MLS(R) and REALTOR(R) trademarks, which signify a high standard of service and identify members of CREA.

For further information: or to arrange an interview, please contact:
Alyson Fair, Publicist
The Canadian Real Estate Association
(613) 237-7111 ext 2284
afair@crea.ca

Latest

RSS

Archives

Categories

Follow

Get every new post delivered to your Inbox.

Join 103 other followers