|
Sign Up for Michelle's Free E-Newsletter
|
|
Real Estate Newsletter
|
In this issue: Don't miss out on this year's market, Three ingredients drive Canada's housing market, Visiting Open Houses - The ultimate reality check, Current Mortgage Rates
Don't miss out on this year's market
As a real estate professional, I know that Canadians have an almost insatiable curiosity about the market. No matter where I go or what I'm doing, as soon as anyone hears that I'm in real estate, the next question is usually, "What's the market going to do this year?" Well, whether you're thinking of buying or selling, let me put your mind at ease. There's a lot of good news in the 2008 market.
You've probably heard that the Canadian housing market set a number of MLS ® sales records by the end of last year, and the re-sale housing market is expected to remain at near record sales levels in 2008. At least, so says The Canadian Real Estate Association (CREA) when reporting on the national picture. Annual residential MLS ® sales activity totaled 520,747 units in 2007, the first time ever that MLS ® transactions in Canada surpassed 500,000 homes sold in one year.
So what does that mean to you? Well, for one thing, it means that there's still strong buyer demand, and that demand means prices are expected to climb to new heights in 2008. While that will certainly make sellers happy, it won't come as good news if you're thinking of buying. However, even for buyers, there's still a silver lining. The high demand for homes means that buyers are still finding the current prices to be manageable, thanks to the very affordable interest rates that are in place right now. According to CREA, Canadian mortgage lenders see that home prices will continue rising, so there's still strong competition for mortgage business in Canada. More good news is that The Bank of Canada cut its trend-setting interest rates on January 22 and again on March 4th. These lower interest rates help to offset any increase in housing affordability due to rising prices. The bottom line is, even though the sale price may go up (good for sellers!), the carrying cost for the buyer changes very little due to the lower interest (so that's good for buyers!). And while you're carrying a home for much the same cost as if you'd bought when prices were lower, the best news for buyers is your equity could be growing as prices continue to rise. Industry forecasts call for more gains in average price - both this year and in 2009.
And just how high will prices go? Well, average prices for MLS® home sales are expected to keep setting records in 2008, although prices will increase more slowly as the market becomes more balanced across the country. According to CREA's Chief Economist, a larger supply of listings will be one of the balancing influences, so there'll be more for buyers to choose from in 2008. Nationwide, the average resale price is forecast to increase another 5.5% this year, to $322,700.
Of course, that's just an overview of market conditions in general. As your local Coldwell Banker® real estate professional, I can tell you that prices can vary dramatically within regions, communities, or even on the same street. If you'd like some 'insider information' on today's market, I hope you'll give me a call.
|
Three ingredients drive Canada's housing market
There's been a lot of media attention about the real estate market in the U.S. lately. So much so, in fact, that some of my customers are either getting confused about the recent reporting, or wondering if some of the problems south of the border could possibly affect us here. First and foremost, let me clarify that the influences you're seeing at play in the United States when you turn on your TV every night are definitely not at work here. In fact, industry sources and economic forecasters say that all the positive economic drivers are in place for a continued strong market, so we're looking in pretty good shape.
According to the Canadian Real Estate Association (CREA), there are three key economic ingredients that will keep Canada's housing market on a different track from the U.S. One is consumer confidence, the second is employment, and third is affordable interest rates. Right now, the news in these three critical areas is good on all fronts. CREA's Chief Economist forecasts that the Canadian housing market in 2008 will pull back from last year's breakneck pace, but it will still be the second-busiest year on record in almost all provinces, with residential unit sales reaching an estimated 512,705 units.
The real challenge for the Canadian housing market will be the extent to which our employment situation and consumer confidence may be affected by a slowdown in the U.S. economy. According to CREA, an economic downturn in the States is expected to result in slower job growth here, but there should still be growth all the same. Despite all the media hype, the reality is that a positive employment picture, not massive layoffs are being forecast in Canada for 2008. Consumer confidence may be side-swiped by stock market volatility and reports that chances of a U.S. recession will put the brakes on the Canadian economy. However, the good news is that with continuing job growth, a low unemployment rate and the absence of widespread layoffs, consumer confidence will bounce back. The domestic economy and the housing market will weather the sub-prime fallout with the help of lower interest rates.
Whether you're thinking of buying or selling a home - or both -- you'll be glad to know that the three ingredients for a robust real estate market are all in place and market conditions are expected to stay strong throughout 2008. If you bought a home now, forecasts call for its value to appreciate this year and next -- and financing continues to be available at very attractive interest rates. If you're thinking of selling, you can look forward to the average home price in Canada rising to record heights this year. Either way, there's good news ahead. So why not turn those three ingredients into your own recipe for success? Make this your year to capitalize on the opportunities that are present in today's market. As your Coldwell Banker® real estate professional, I'll be there to help you every step of the way. Why not give me a call, and let's talk about your options. |
Visiting Open Houses -- The ultimate reality check
If you're a prospective home buyer, there are many good reasons to visit an Open House. While online listings give you a very limited view of the home and perhaps some of the property, a personal inspection is the ultimate reality check.
Visiting different Open Houses within a short period of time offers you a unique opportunity to compare and evaluate one property against another. It also gives you the freedom to check out several properties informally without any pressure, so many buyers find that it's a very good first step in the home buying process. Once you've toured a few Open Houses, you're in a much better position to start refining your search. If you're not sure exactly what you want at the start of the process, visiting Open Houses lets you examine different styles of home in the real world, not just from written descriptions or floor plans. Let's face it - how many buyers can be absolutely sure they want a split level, open concept, or raised ranch style home without ever having seen one in person? It may look like a good idea on paper, but you may find that in reality, it just isn't right for you. If you're unfamiliar with some home styles, then visiting Open Houses will help you to determine what you like and, equally important, what you don't like about certain styles. When it's time to start working with a sales professional and scheduling appointments for private viewings, the experience you've gained from your Open House tours will help you weed out prospective homes simply based on their design and layout.
Open Houses also give you 'real world' decorating ideas that will be invaluable when its time to set up your own home. Visiting a variety of different homes can show you what works and what doesn't for everything from interior design to room layout. Then you can apply that knowledge when you find the home that's right for you. Even something as simple as the use of colour in different areas and how furniture is positioned can all add to the enjoyment of your own home.
Another advantage of coming out to Open Houses is getting to meet different sales representatives. If you aren't already working with a real estate professional, Open Houses give you an opportunity to meet several of them informally and see if you have any rapport with them. After all, you should feel comfortable with the person who's advising you in what's probably the most important financial decision of your life. And if you're also planning on selling your existing home, it's a great way to see how well the sales representative presents the home you're visiting. |
|
