Toronto Real Estate Blog

By Annie McLeod, Leader-Post

Affordability — not government incentive programs — is the primary factor that influences first-time home buyers in the Prairies, according to a new report by Royal LePage.

In its national first-time home buyers report, Royal LePage said 92 per cent of buyers in the Prairies considered interest rates a factor in their first-home purchase. Low prices were close behind at 88 per cent.

Even though the average sale price of Regina homes is up three per cent from the same period last year, Mike Duggleby, manager of Royal LePage Regina Realty, said the current low interest rates are helping to make homes more affordable. This is bringing more first-time home buyers into Regina’s housing market.

“We were just taking a look at last month’s statistics, and the busiest price range in the city is between $200,000 and $225,000, which is first-time home buyer territory,” he said, noting that the number of sales in that price category are up over 104 per cent from the same month last year.

The report also stated that 55 per cent of first-time buyers in the Prairies considered the home renovation tax credit (HRTC) to be an influencing factor in their first home purchase. The HRTC provides a maximum credit of $1,350 for work performed on, or goods acquired for, an eligible dwelling.

With respect to the first-time homebuyers tax credit, Duggleby said that while the $750 credit is “significant and it’s nice,” it’s a low dollar amount compared to the price of a home and won’t be the determining factor in buying or not buying.

Sales between $150,000 and $250,000 make up the majority of the new buyer market in Regina, said Duggleby. Homes in the Broders Annex neighbourhood, east of the General Hospital, are the most popular for first-time buyers as people are buying and renovating them to make their first property nice.

“It’s more affordable than some other neighbourhoods that have had a lot of renovations done in a lot of houses already,” said Duggleby. “Buying that property that needs a little bit of work makes it a bit more affordable.”

Of the first-time buyers surveyed, more than half planned to purchase condominiums or detached bungalows. First-time buyers make up about 30 per cent of Regina’s housing market, and Duggleby said the majority of them are under the age of 30.

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Housing market conditions are improving more rapidly than expected with the average price for a home in B.C. now predicted to decline five percentage points less in 2009 than forecast at the beginning of the year, the B.C. Real Estate Association said Tuesday.

“The imbalance between supply and demand was putting significant downward pressure on home prices,” BCREA chief economist Cameron Muir said in an interview.

“[But] on the demand side, we’ve now seen three consecutive months (seasonally adjusted) of double-digit increases in home sales. And on the supply side, the number of homes for sale in Vancouver has declined for six consecutive months.

The imbalance has waned considerably.” Muir said that he believes most of the decline in home prices has already occurred and that there’s little downward pressure on home prices in Victoria, Vancouver and the Fraser Valley. “There will be much better price stability, especially for the balance of the year.”

As part of its Spring 2009 Housing Forecast, the BCREA reported that housing market conditions have improved more rapidly than expected. As a result, BCREA has revised its home price forecast upwards, reflecting greater price stability through the balance of the year.

The average residential price is now forecast to decline eight per cent to $420,600, instead of the 13-per-cent increase originally forecasted. The report said that residential sales will decline 12 per cent to 60,755 units this year, as a result of a weak first quarter.

However, stronger consumer demand is expected to continue for the balance of the year and through 2010. Residential sales in 2010 are forecast to climb 10 per cent to 66,740 units. Reasons for the change include affordability, with lower home prices and record low interest rates reducing the carrying cost of the average priced home by 24 per cent over the last year.

“First-time buyers are a stronger force in the marketplace than in the fall and winter months,” added Muir.

Asked how long it might be before home prices return to their peak in February 2008, Muir replied that there’s no way of knowing.

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Contact the Jeffrey Team for more information  -  416-388-1960

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The Burnside News

Though Nova Scotia’s March real estate sales activity was down 15 per cent from the same period last year, it was still the highest level of housing sales activity in the province in five months, as reported by the Nova Scotia Association of Realtors. The provincial Association also reports that year-over-year declines in activity continue to get smaller. In January 2009, the year-over-year decline was 32 per cent.

The value of all residential transactions recorded through the MLS system in Nova Scotia totaled $130.5 million in March 2009, a 16 per cent decrease from year-ago levels. The total value of all MLS sales activity in Nova Scotia was $137.4 million, a year-over-year decline of 17 per cent from March 2008.

“Despite the downturn, a number of buyers and sellers are taking advantage of the increased affordability the current market has to offer,” says Linda Smardon, president of the Nova Scotia Association. “Activity during the rest of the spring market will depend heavily on what happens with interest rates and the consumer response to the federal budget incentive programs,” she adds.

The average price for MLS home sales in Nova Scotia was down slightly in March 2009 compared to levels one year earlier. Edging down one per cent from March 2008, the provincial average price for home sales was $188,651. The national MLS residential average price in March 2009, by comparison, was down by eight per cent year-over-year. The MLS average price rose by 1.6 per cent in Halifax-Dartmouth to $229,548. The small decrease in provincial average price was in part the result of fewer sales in this region, where homes are priced higher than in other markets across the province. Sales activity was down by 19 per cent year-over-year in Halifax-Dartmouth, compared to the 15 per cent provincial decline. This resulted in fewer transactions at the higher end of the price spectrum being included in the calculation of the provincial average price.

The number of active listings continues to increase in Nova Scotia, but year-over-year gains are slowing as demand begins to recover and new listings trend lower.

“Home sellers are adjusting to the changes in the market and are working with their realtor to price homes realistically, and when that happens properties will sell. We anticipate a fairly strong April market,” Smardon says.

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Contact the Jeffrey Team for more information  -  416-388-1960

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Sales of existing homes in the United States rose 2.9% in April, according to an industry survey yesterday that supported views the three-year housing recession was near a bottom.

The National Association of Realtors said sales climbed to an annual rate of 4.68-million from a 4.55-million pace in March. That was slightly higher than market expectations for a 4.66-million-unit pace.

“Most of the sales are taking place in lower price ranges and activity is beginning to pick-up in the mid-price ranges, but high-end home sales remain sluggish,” NAR chief economist Lawrence Yun told reporters.

During the month, single-family home sales rose 2.5% to an annual rate of 4.18-million, while condos jumped 6.4% to a 500,000 annual pace. Home sales were up in three of the four regions.

U. S. financial markets showed little reaction to the data.

“This report seems to offer another piece of evidence that home sales are stabilizing,” said Zach Pandl an economist at Nomura Global Economics in New York.

Housing, which is at the heart of the 17-month old recession, is showing signs of stabilizing. Analysts reckon home sales and groundbreaking for the construction of new homes will probably reach bottom by mid-year.

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Contact the Jeffrey Team for more information  -  416-388-1960

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TORONTO, June 3, 2009 – In May 2009, Greater Toronto Realtors reported 9,589 sales, up almost 2% from May 2008 – the first annual increase since December 2007. The seasonally adjusted annual rate of sales* in May was 81,300.

“The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to the Toronto Real Estate Board President Maureen O’Neill. “Many home buyers have taken advantage of extremely low mortgage rates.”

The average price for May transactions was $395,609 – down less than one per cent compared to the same month last year. In the City of Toronto, the average price was $432,478, a minor 0.4% difference from May 2008.

“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “Home sales have increased strongly relative to new listings, bolstering home prices.”

City of Toronto
May 2009 Sales: 3,777 |: | May 2009 Average Price: $432,478
May 2008 Sales: 3,711 |: | May 2008 Average Price: $434,271

Rest of GTA
May 2009 Sales: 5,812 |: | May 2009 Average Price: $371,649
May 2008 Sales: 5,700 |: | May 2008 Average Price: $374,629

All of GTA
May 2009 Sales: 9,589 |: | May 2009 Average Price: $395,609
May 2008 Sales: 9,411 |: | May 2008 Average Price: $398,148

*Seasonally adjusting Toronto Real Estate Board MLS data removes recurring seasonal trends observed each year. For example, MLS sales are highest in late spring each year and lowest in the winter months. Removing the recurring seasonality, allows for the analysis of a meaningful trend reflecting actual changes in market conditions. By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how the current month relates to historical annual figures.

For a complete copy of the May Real Estate Market Watch Report visit www.TorontoRealEstateBoard.com.

Greater Toronto Realtors are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board.

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Contact the Jeffrey Team for more information  -  416-388-1960

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