Tag Archives: number of sales
Luann Lasalle – The Canadian Press
Home buyers can expect more choice and lower prices in the second half of 2010, while sellers can expect fewer offers for their homes, says one of Canada’s leading real estate brokers.
“Accurate pricing is going to be really key,” said Phil Soper, CEO of Royal LePage Real Estate Services.
In its latest housing survey, Royal LePage said yesterday the real estate market will start to slow in the second half of 2010 with the number of sales expected to fall compared with the hot activity early in the year.
“I would say if you’re a seller, the first thing you should expect is fewer multiple offers on your home,” Soper said from Toronto.
Sellers who try to squeeze extra money out of their homes will likely have their homes “languish” on the market, unless they’re exceptional properties, he said.
“I believe we are through the highly volatile spiking of prices and activity levels, both up and down,” Soper said. “We’ll see a much a more stable, but frankly less exciting in a good way, real estate market in the next 18 months,” he said.
Soper said a lot of buyers were frustrated by a tight supply and “overexuberant competition,” particularly in the first quarter, but that’s easing with increased listings.
In the first half of this year, about half of real estate transactions were from people who were looking to buy a home, but weren’t necessarily selling one, he said.
“It took a while for sellers to get comfortable that the recovery from the recession was real. We had an all-time record number of new homes come on the market in the first quarter of 2010. It started to impact prices in the second half (of 2010).”
Soper also noted that “fiscally aware 20-somethings,” especially women, are now much more interested in buying homes than they were in the past.
Royal LePage said some markets will see a decline in home prices and sales volumes toward the end of 2010, but they should be seen more as a reflection of the highs reached late last year rather than a major slowdown.
Prices for detached bungalows and two-storey houses were up about 9% in the April-June quarter, compared with the same time last year. Condominiums were up 7.3%.
Royal LePage is forecasting that by the end of 2010, home prices will rise an average 6.8% over last year, while the number of home sales will increase by just over 1% from 2009.
Vancouver and Toronto showed some of the largest increases in the second quarter of 2010.
Average prices in Vancouver were up 16.6 to 19.1% while prices in Toronto rose by an average of 7.7 to 11.4%.
However St. John’s, N.L., had the country’s biggest increase with prices up an average of 18.4% to 9.6%.
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Buyers attracted by historically low interest rates set a record in April for both prices and number of sales
Meghan Potkins, National Post
Toronto real estate is so hot right now that it is luring potential buyers into the market like sharks to blood in the water — if sharks were motivated by the looming threat of increased interest rates in the second half of 2010 and the dreaded July HST deadline.
Home buyers attracted by historically low interest rates set a record in April for both prices and number of sales. The Toronto Real Estate Board Wednesday reported the sale of 10,898 residential properties in April — a 34% increase compared to April 2009.
Among the buyers was downtown condo resident Lana Thompson, who with her husband had gone through five bidding wars since they started looking last spring for a home with a little more space and a good French-immersion school nearby for their kindergarten-aged son.
The Thompsons found themselves embroiled in escalating bidding sessions with up to as many as 14 other buyers at a time — on one occasion their bid lost when the sale was awarded to a buyer offering $157,000 over the asking price.
They finally found the perfect three-bedroom place in April in Bloor West Village and paid no more than the asking price of $699,800.
Ms. Thompson said that she and her husband felt the push to buy while interest rates were low and the HST was not yet in effect — they wanted to avoid the extra burden when it came to lawyer fees as well as moving and inspection fees.
April was a record month for real estate sales in the GTA, according to the Toronto Real Estate Board’s monthly report. The average home price was $437,600, up 13% from the average of $385,641 recorded a year earlier.
On the supply side, April saw a 59% annual increase in new listings with 20,683 homes listed. An analyst with the Toronto Real Estate Board said homeowners are beginning to take notice of the hot prices and are rushing to take advantage while demand is high.
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Number of homes sold, prices also surge as consumers flock to the market before new mortgage requirement and HST come into effect
Steve Ladurantaye – Globe and Mail
The Canadian real estate market reignited in March, with the number of new listings skyrocketing even as the number of sales and average prices crept toward all-time highs.
February data from the Canadian Real Estate Association showed sales and prices moderating as supply began to creep back into the market, but March numbers suggest Canadians are feverishly jumping into the market to sidestep tougher mortgage requirements in effect Monday April 19 as well as to avoid new taxes being introduced in Ontario and British Columbia in June.
There were 97,663 homes put up for sale last month, a 20% jump from the previous high set in March 2008. A total of 233,402 listings have been booked since the beginning of the year, the most for any first quarter on record.
New listings are important because they can help moderate sharp price increases that occur in a sellers’ market as buyers are forced to compete for what little inventory is available. That hasn’t happened yet, however, with sellers still in control in most of the country.
The national average price also spiked in March, hitting $340,920 – just $300 short of the all-time high reached last October. Compared to a year ago, the average price has gained 17.6%. CREA said 49,256 homes were sold, the second highest for any March and 40.8% higher than March 2008.
“Negotiations still favour sellers during the home buying process in a number of major Canadian housing markets,” said Georges Pahud, the association’s president. “[However,] the rise in new listings mean that buyers may shop around more before making an offer.”
In the first quarter, seasonally adjusted sales hit 130,072 homes, the fourth highest level on record. That’s a 3.4% decrease from the fourth quarter, when a sizzling market spurred talk of a bubble among economists and pushed the Federal government to enact tougher mortgage rules to ensure consumers would be able to afford their mortgages should interest rates rise.
Sales activity in Ontario, Quebec, and Newfoundland & Labrador rose to new records in the first quarter, but the gains were moderated by a sharp drop in sales in British Columbia as consumers began to be priced out of the market.
“The erosion of housing affordability is crimping activity in some of Canada’s priciest markets in the lower mainland of British Columbia,” said CREA chief economist Gregory Klump.
“Higher mortgage interest rates and the rise in new listings may also soon reduce some of the urgency to purchase in Toronto. Sales activity in British Columbia and Ontario is expected to ease over the second half of 2010 once the HST comes into effect, pulling national activity lower. Rising supply and lower activity will take the steam out of the pricing environment following upbeat home sales this spring.”
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