As a result of a sizzling month of sales in June, Canada’s two largest real estate markets — Toronto and Vancouver — came close to breaking their all-time sales records.

In Toronto, the nearly 11,000 properties sold last month marked a 27 per cent sales increase over the previous June. And in Vancouver, where 4,259 units changed hands last month, sales were up 75.6 per cent from 12 months ago.

Major year-over-year gains were also seen in Calgary (28 per cent), Regina (24 per cent), Edmonton (15.8 per cent) and Ottawa (12.5 per cent). Sales were also up 5.2 per cent in the Halifax-Dartmouth area over the previous June and had inched up 0.8 per cent in Newfoundland and Labrador.

According to RE/MAX, most of Canada’s major real estate markets had begun to recover from the recession as early as March, with sales picking further up in April and May, leading to the high levels of sales seen in June.

Michael Polzler, the executive vice-president of RE/MAX Ontario-Atlantic Canada, says the boom in sales is the result of affordable prices and mortgages, as well as pent-up demand among homebuyers.

It’s a trend that could also help the wider economy, he said, because it will spur homeowners to spend on home improvements.

“When people start buying houses, they have to buy all the things that go along with those houses,” Polzler told CTV’s Canada AM on Monday morning. “Often it means a new fridge, a new carpet, painting, fixing up this, fixing up that. Even when you buy a new house, there’s a lot of things to buy. So, it helps everybody connected.”

Looking forward to the rest of the year, RE/MAX is expecting to see a more stable real estate market, though sales may not continue at the current pace.

Polzler believes that many Canadians favour real estate as a form of investment, as opposed to putting their money in private business opportunities.

“Most Canadians are very uncomfortable and unsure about the stock market,” he said. “And when you see that through these difficult times, prices in real estate have come down a little bit in most places — and in many cases are back up — they feel a lot more control than they do in the stock market.”

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090713/real_estate_090713/20090713?hub=TopStories

reviewed by Moishe Alexander, CFC canadian funding corp CEO

It has been another busy month in Fort Saskatchewan Real Estate.

reviewed by Moishe Alexander, CFC CEO.

There were 32 Single Family Homes SOLD in the Month of May.

The Average Selling Price for a Single Family Home in May was $373,614 (an increase from $362,000 in the month of April).

It has been a busy start of the summer for Real Estate in Fort Saskatchewan with home prices increasing $10,000 from a month ago. Overall the price of a single family home in Fort Saskatchewan has dropped approximately $25,000 from last year (average selling price for a single family home in May 2008 was $399,900).

Source: REALTORS®  ASSOCIATION OF EDMONTON
AVERAGE AND MEDIAN MLS® SALE PRICES FOR DETACHED HOMES
FOR THE MONTH OF MAY

Check back next month and stay informed on your real estate market.

Given that sales will fall and listings will rise, the market will ease slightly over the coming year. Average resale prices will continue to increase, but more slowly than in recent years.

A higher proportion of condominium sales will take place in the suburbs and in the less expensive sectors on the Island of Montréal, which will contribute to limiting the growth in prices. For the market overall, prices will therefore rise by 4 per cent in 2008 and by 3 per cent in 2009. Still, on the whole, the market will remain favourable to sellers in the short term and gradually ease toward more balanced conditions in 2009.

Here is the break down of the report:

• Mortgage rates are expected to be relatively stable
• Resale market will be moderately slow
• Condominiums will maintain more demand than single family houses
• Supply of home listings with increase slightly.
• Affordable homes are expected to register increases in starts.
• Prices for single family homes and plexes will go up by an average 4 % in 2009
• Condo prices are expected to grow by 3%

Now, let’s take a look at the details…

Change of pace for the economy

In 2009, despite the anticipated decrease in residential construction, several nonresidential projects announced by the different levels of governments, such as the replacement of the Turcot Interchange and the modernization of Notre-Dame Street, will boost employment growth in the construction sector.
However, the level of activity in the manufacturing sector will moderate.

Mortgage rates are expected to be relatively stable

“Posted mortgage rates will decrease slightly in the first half of 2009 as the cost of credit to financial institutions eases. Rising bond yields, however, will nudge mortgage rates marginally higher in the latter half 2009.”

**Note: The Back of Canada already made cuts to the interest rates. Check the December 9th press release.
The next scheduled date for announcing the overnight rate target is 20 January 2009.

Resale market to slow moderately

The growth in prices will be slower for existing homes than for new homes, which will widen the price gap between them and consequently prompt more buyers to turn to the resale market.
While slightly less active, the resale market will still remain strong. The sales levels forecast for 2008 and 2009 will exceed the annual average of 39,000 transactions recorded for the period from 2002 to 2007.

Condominiums will maintain the upper hand

Condominiums—the only housing type that will register an increase in sales in 2008—will sustain a less significant decline in demand than single-family houses or plexes 2009.
Affordable housing types, such as condominiums, and homes located in less expensive geographic sectors, are managing better.

Slightly more supply on the market

This is good news, says Moishe Alexander

Montreal Listing Trends 2009

Currently, the supply of homes is growing. Listings started to rise again in the second quarter of 2008, and there is every indication that they will end the year up by 7 per cent over 2007. As well, we forecast that they will maintain this momentum in 2009, with an increase of 9 per cent. At the end of 2008, an average of 22,300 active listings per month will have been registered in the GMREB MLS® system for the Montréal CMA.

Affordable homes will again stand out

Overall, total starts will fall this year. However, the opposite will hold true for more affordable housing types, which are expected to register increases in starts. After having exploded in 2007, with a gain of 35 per cent, semi-detached and row housing starts will maintain their momentum this year and rise by 14 per cent to 2,200 units.

Condominium starts will increase, to a lesser extent.

In 2009, these two housing types will again stand out. Semi-detached and row home starts will stay at the same level as in 2008, while condominium starts will register a smaller decrease than the declines that will be recorded for single detached home building and rental housing construction. In all, 7,700 new condominium units will be started next year, or 4 per cent fewer than in 2008.

The downward trend in single detached home starts

Single Detached Housing Starts

It began a few years ago, will continue. Because these houses are more expensive, also because the population is aging and households are getting smaller, the need for more spacious homes is less significant than before.