Garry Marr, Canwest News Service
Published: Tuesday, November 11, 2008
The average price of a home sold in Canada will fall this year for the first time in a decade and might not even recover by 2010, the Canadian Real Estate Association said Monday.
The Ottawa-based group, which represents 100 boards across the country, updated its forecast in light of new economic conditions and now expects home prices to drop 0.6 per cent this year and 2.1 per cent next year. Three months ago the group was forecasting price increases for this year and next year.
"Canadian economic growth is being side-swiped by financial market turmoil, slowing world economic growth and weaker commodity prices," says Gregory Klump, chief economist with CREA. "The question of whether Canada will avoid a technical recession is moot, growth will be slow enough that it will feel like a recession."
____________________________________________________________
Peter Bhandari
Sales Representative
Royal Lepage Credit Valley Real Estate
http://www.PeterBhandari.com
email: pb@royallepage.ca
Direct: 4168272340
Office: 905-793-5000 x 478
Tony Wong
Business Reporter
Given the turmoil in the global stock markets, real estate economists have been scrambling to revise forecasts made at a time when Lehman Brothers was still in business and big North American automakers weren't on life support.
What a difference a few months makes.
In August, the Canadian Real Estate Association forecast a 2.6 per cent increase in national housing prices for 2008 and another 2.1 per cent next year. Yesterday, CREA released a new forecast, calling for a 0.6 per cent slide this year and a further 2.1 per cent drop in 2009.
"This is in line with the downward revisions of the Canadian economic and job growth forecasts," CREA chief economist Gregory Klump said yesterday. A bigger-than-expected price depreciation and lower sales in British Columbia are expected to pull down the national average, Klump added.
The downgrade comes on the heels of another revision by Canada Mortgage and Housing Corp. last week.
The federal housing agency said Ontario housing starts were originally forecast to hit 65,000 units next year, but revised that down to 62,000. Existing home sales, forecast to be 178,000 in 2009, were downgraded to 173,000.
"With a weak domestic economy and tighter lending conditions, we expect Canadian housing activity to slow notably further in the future," said Millan Mulraine, an economics strategist with TD Securities.
Meanwhile, in a separate release yesterday, the CMHC said Canadian residential construction declined by 3.1 per cent in October compared with a month earlier.
Starts came in at 211,800 annualized units, greater than the expected 200,000 units, thanks to remaining strength in the condominium sector.
"The strongest level of condominium apartment construction on record has resulted in a substantial jump in total new home construction this year," said Jason Mercer, senior market analyst for the federal housing authority.
This is particularly true in the Toronto area, where year-to-date starts are up by almost a third compared with the same time last year.
Starts are a lagging indicator. Most of the starts today are from sales of condos that occurred a year or two ago, and that trend isn't expected to continue as strongly in the future. "New home and condo sales have slowed in the last couple of months from the record highs of the past couple of years," said Ontario Home Builders' president Frank Giannone. Last week, the Toronto Real Estate Board reported a 35 per cent decline in year-over-year sales in October.
The average price of an existing home in Toronto is now $376,896, down 13 per cent from last October's average of $434,022. The impact was more muted in the 905 suburbs, where the average price of a home is down by 8 per cent to $336,049.
__________________________________________________________________________
Peter Bhandari
Sales Representative
Royal LePage Credit Valley Real Estate, Brokerage
(tel) 905-793-5000 X 478
(toll-free) 1-800-631-5216
(web) http://www.PeterBhandari.com
TORONTO - Strength in the multi-residential apartment and townhouse sector helped propel InterRent Real Estate Investment Trust (TSX:IIP.UN) to solid third-quarter gains in operating revenues, net operating profits and other financial measures.
Operating revenues climbed to $8.6 million from $7.7 million a year ago, while net operating profits rose 17.4 per cent to $4.8 million, the trust reported Wednesday.
Distributable income for the quarter was $1.3 million or seven cents per unit compared with $900,000 or six cents per unit during the same period last year.
The trust said occupancy levels during the quarter rose to 97.9 per cent from 96.9 per cent.
"Our goal for the second half of 2008 was to continue improving the REIT's operating results," CEO Mike Newman said in a statement.
"The multi residential real estate sector continues to show signs of strength even in these uncertain economic times."
InterRent, a real estate investment trust, owns and operates 3,901 apartments across Ontario.
In Toronto, units in the trust traded up nine cents at $1.64, still down sharply from $4.20 a year ago.
Contact me for your exclusive VIP Preview of U Condominums, newest collection Of Condominiums in Downtown Toronto situated on Bay Street, U condminums is next to the grounds of St. Michael's College of U of T Campus, just steps from Bloor & Yorkville. This is the sophisticated address that U have earned.
This is not open to the general Public - call me today for details and your exclusive viewing! Be the first to choose your unit, and your Design!
Don't miss this one!
Sincerely,
Peter Bhandari
Sales Representative
Royal LePage Credit Valley Real Estate, Brokerage
(tel) 905-793-5000 X 478
(toll-free) 1-800-631-5216
(web) http://www.PeterBhandari.com
Canada News Wire
New home construction will moderate from historically high levels, to reach just under 178,000 units in 2009, a level that is consistent with demographic fundamentals, according to Canada Mortgage and Housing Corporations (CMHC) fourth quarter Housing Market Outlook, Canada Edition report.
High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year, said Bob Dugan, Chief Economist for CMHC. Housing starts will moderate to 212,200 units in 2008 and 177,975 units in 2009.
Existing home sales, as measured by the Multiple Listing Service, which reached a record level of 523,701 sales in 2007, will moderate in 2008 to 452,225 units. In 2009, MLS sales will move to 433,375 units. Despite a moderation in MLS sales, demand for existing homes will remain strong by historical standards. With housing markets having become balanced across Canada, the rate of growth in the average MLS price will moderate. Average prices will reach $306,500 in 2008 and $306,700 in 2009.
As Canadas national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes - homes that will continue to create vibrant and healthy communities and cities across the country.
Contact Peter Bhandari for more information - 416-827-2340
 |
|
|
Buy,Sell or Invest in Real Estate with confidence. Confidence, Competence, Trust And Integrity are the foundation. And I as a professional like to stick to my foundation firmly.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
