According to statistics released by The Canadian Real Estate Association (CREA), actual (not seasonally adjusted) home sales, via the Multiple Listing Service(R) (MLS(R)) of Canadian real estate boards, totaled 147,351 units in the second quarter of 2009 – the fourth strongest quarterly sales figure ever. Up 1.4 per cent from the second quarterof 2008, this marks the first year-over-year increase in quarterly activity since the fourth quarter of 2007.

http://blog.buzzbuzzhome.com/2009/07/mls-canada-fourth-strongest-quarterly.html

reviewed by Moishe Alexander, CFC  Canadian Funding Corp CEO

The good news? Canadian real estate is on a record pace in 2006.

The bad news? The third quarter numbers are down sharply from the second quarter of this year, and even down from the third quarter of last year. What does all this mean?

It basically means that Canada’s sizzling real estate market is still hotter than ever, but that it can’t keep up the incredible pace that it’s been on.

Breaking down the numbers, Canadian real estate is down 6 percent compared to the same quarter last year, and down 2.5 percent from the second quarter of this year, according to the Canadian Real Estate Association.

Overall, sales during the first nine months of this year are still up over the same nine months from last year, but things do appear to be slowing down.

The hardest hit cities during the third quarter slow down were Vancouver, home of the 2010 Winter Olympic Games, red-hot Calgary, which is still booming thanks to the local oil industry, and Toronto. Sales in Edmonton, Alberta and Hamilton, Ontario are actually up for the third quarter, helping to offset the losses in other cities.

Proving that the incredible Canadian real estate market is still on fire, year-to-date sales records were set in various cities all across the country in the third quarter. Montreal, Winnipeg, Ottawa, Saskatoon, Edmonton and Calgary all reported record sales for this year.

The average price for a home in Canada has been sky rocketing in recent years, with the total now at $258,000 (US dollars) up from $234.000 just in the last calendar year.

This real estate frenzy is being led by the province of Alberta and their incredible economy. The cities of Calgary and Edmonton, which reported their highest level of new real estate listings ever in the third quarter. Montreal and Toronto reported their second highest amounts of new listings for any quarter, as well.

The Canadian real estate market is still breaking records and making money despite the third quarter downturn. The breakneck pace simply couldn’t be sustained. But if you’re looking to move north of the border, do so knowing that it might cost you a few more loonies than you thought.

http://www.sexyinfotainment.info/2009/07/canadian-markets-hot-and-cold/

reviewed by Moishe Alexander, Canadian Funding Corp CEO

“To date, over $115 billion has been provided to improve the availability of financing for Canadian households and businesses, all of it on a commercial basis to protect the taxpayer,” said Minister Flaherty. “This has had a real impact on credit conditions in Canada. Household and business credit is growing and average interest rates have fallen steadily. This is good news for all Canadians.”

Minister Flaherty also announced that allocations under the $1-billion Small Enterprise Tranche of the Canadian Secured Credit Facility (CSCF) have been made, ensuring the facility reaches smaller participants in the loan and leasing market. Lenders from a cross-section of the vehicle and equipment financing industry have received the allocations. This brings the total allocated under the CSCF to $11 billion. A further $1 billion will be allocated in August.

“Giving smaller lenders in the loan and leasing market a chance to access credit is wholly consistent with Canada’s Economic Action Plan,” said Minister Clement. “Support for the financing of vehicles and equipment in Canada will also help bolster confidence in the Canadian auto industry at this critical time.”

Canada’s Economic Action Plan takes unprecedented action to improve access to credit and financing for Canadian families and businesses. Measures include the:

* Business Credit Availability Program
* Canadian Secured Credit Facility
* Insured Mortgage Purchase Program
* Canadian Lenders Assurance Facility
* Canadian Life Insurers Assurance Facility

“Under the program, which will replace the home start affordable housing initiative, people with a household income of $52,000 or less will be given a five per cent downpayment toward a mortgage on a new affordable housing development, if they’re approved.”

The story is here.

I’m always happy to answer your Saskatoon real estate questions. All of my contact info is here. Please feel free to call or email.

Follow our daily updates on Twitter @SaskatoonHomes.

Norm Fisher

http://www.teamfisher.com/affordable-housing-assistance-from-city-may-be-on-its-way/

reviewed by Moishe ALexander, CFC CEO

The Canadian construction industry may have been the engine of economic growth for much of this decade, but recent figures show that it hasn’t been firing on all cylinders. Canadian housing starts cratered by a much-greater-than-expected 19.9 per cent to 117,400 annualized units in April compared with March, the slowest pace of residential construction activity since 1996, according to figures released by the Canada Mortgage and Housing Corporation yesterday.

“Overall, the construction downturn continues to have a coast-to-coast footprint, with Western Canada and Ontario faring worst,” said BMO Capital Markets economist Robert Kavic. Much of that decrease was recorded in Toronto, where the volatile multiple starts segment, which includes condominium buildings, brought down the overall national average.

The seasonally adjusted and annualized rate of starts fell for the first time in three months in the Toronto market to 16,300 units, representing a 55 per cent drop from the prior month. The condominium segment fell by 65 per cent, while single-detached housing fell by 3.5 per cent.

“The economic fundamentals continue to point to further weakness in Canadian housing activity,” said Ian Pollick, economics strategist for TD Securities in a research note. “The housing sector is likely to remain a drag on Canadian economic activity.” One silver lining might be that a decrease in activity will finally chip away at the prior six years of overbuilding, economist Kavic said.

It was a point echoed by other economists, including Pollick. “We cannot ignore the fact that the reduction in starts is likely to keep inventories contained, which is a good thing during a recession.”

The CMHC points out that a high number of condominium sales in the Toronto market in the first half of last year will likely result in an increase in starts in the second half of this year.

But some of those projects may not proceed, since some builders have had trouble meeting the 60 to 75 per cent sales threshold banks require before loaning money.

For the first quarter of 2009 new home sales are 60 per cent lower than in 2008, and 75 per cent lower than in 2007.

Meanwhile, the Ontario Home Builders’ Association reported yesterday it was seeing increased traffic during the spring market after “an extremely slow period of activity in the winter.”

But the province’s proposed harmonized sales tax, which is expected to be implemented next year, remains a sore point.

“Just as builders were starting to see signs of life in sales offices in the early spring selling season, the province announced plans to increase the costs of new homes with a harmonized sales tax,” the builders’ association said.

Source: Tony Wong in the Toronto Star

http://toreal.blogs.com/toronto/2009/05/housing-starts-at-lowest-level-since-1996.html

A total of 28,669 homes traded hands via the Multiple Listing Service® (MLS®) nationally in February 2009 on a seasonally adjusted basis. This is 8.6 per cent above seasonally adjusted levels in January 2009, and the first monthly increase in activity since September 2008. Seasonally adjusted activity in February also surpassed levels reported in November and December of 2008.

Monthly seasonal increases in activity were largest in British Columbia (14.4 per cent), Nova Scotia (12.7 per cent), and Alberta (11.9 per cent). In Ontario and Quebec, the monthly rise was on par with the national increase.

“Typically the Spring market we’re moving into generates more activity, and this year there are the benefits from historically low mortgage rates and improved affordability in most markets,” says the President of The Canadian Real Estate Association, Calvin Lindberg. “REALTORS® are reporting increased interest especially from first time homebuyers.”

Actual (not seasonally adjusted) transactions numbered 25,373 units in February 2009. This was 31 per cent below MLS® residential sales levels a year earlier, but it is the smallest year-over-year decline since October 2008.

The supply of homes for sale remains high, but has been trending lower. National MLS® residential new listings numbered 65,060 units in February 2009, down 10.9 per cent from the same month one year ago. On a seasonally adjusted basis, MLS® residential new listings are down 11.4 per cent from their peak reached in May 2008.

“The housing supply is expected to continue easing, but it will take time before it realigns with lower demand,” said CREA Chief Economist Gregory Klump. “Economic uncertainty is keeping home buyers in a cautious mood, so homes are taking longer to sell than in recent years. Lower sales activity at the higher end of the price spectrum will keep the national MLS® residential average price under downward pressure.”

The national average price for home sales via the MLS® was $281,972 in February 2009, 9.2 per cent below February 2008. This is smaller than year-over-year declines observed in the past four months. It is also the first time that the year-over-year decline in the national average price has decelerated since first turning negative in July 2008.

The national MLS® residential average price continues to be pushed downward by lower activity in some of Canada’s more expensive housing markets and by fewer transactions in higher price ranges. The MLS® average home sale price remained up from year-ago levels in Saskatchewan, Manitoba, Quebec, New Brunswick, Prince Edward Island, and Newfoundland & Labrador in February 2009.

“Real estate is local, so it is important that buyers and sellers accurately determine pricing issues in their specific neighbourhood,” adds CREA President Calvin Lindberg, a West Vancouver REALTOR® .”Despite the doom and gloom, there are multiple offers on properties in some markets. That happens when the house is priced comparably to others in the area. Buyers are looking, but they are confused by the barrage of information they’re getting about the economy and the state of real estate. Consumer confidence remains a critical factor for the housing market.”

The downward pressure on the national MLS® residential average price is being skewed lower in large part by fewer sales in British Columbia, Alberta and Ontario, where homes are more expensive and demand has softened most. MLS® home sales in these three provinces accounted for 66 per cent of national activity in February 2009, down from 69 per cent in 2008.

The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price was down 5.3 per cent year-over-year in February, compared to a 6.1 per cent decline in January.

Seasonally adjusted residential dollar volume for MLS® sales totaled $8 billion in February 2009, an increase of 7.2 per cent from the previous month.

“Consumer confidence will continue to be depressed by a barrage of negative economic news in the months ahead,” said Klump. “Heightened job insecurity will keep many potential homebuyers on the sidelines. Those who are confident about their job situation will benefit from improving affordability in a number of housing markets.”

PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month. The Canadian Real Estate Association has previously released these separately.

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 REALTORS® working through more than 100 real estate Boards and Associations. Further information can be found at www.crea.ca.

http://realtorrayferris.blogspot.com/2009/04/buyers-drawn-into-real-estate-market.html

* There have been several instances where I have been trying to book viewings for my clients for single detached homes and town homes only to find out that the properties that I have inquired about have already received an offer.

* Then there are situations where I was going to submit an offer on properties but found out that I was in a multiple offer situation.

* In other cases homes were only on the market for a couple of days and were sold

The few examples of my personal experience are signs that the Richmond, BC market is active and that there are a lot of buyer’s in the looking to move up from their existing homes and First Time Home Buyer’s who are looking to get into the market now.

Interest Rates are at all time lows and with home prices adjusting to more affordable levels this makes it a great opportunity for First Time Home Buyer’s to start home ownership instead of throwing their money away into monthly rent.

http://sellyourhomeforless.blogspot.com/2009/04/spring-has-sprung-in-richmond-bc-real.html

During the credit crisis, no Canadian banks failed, and none required government capital infusions. And last week when Canada’s major banks issued their quarterly statements, all but one were profitable. Even that exception, a second-quarter loss of 50 million Canadian dollars (on 6.8 billion Canadian dollars in revenue) at the Royal Bank of Canada, was largely related to a write-down in the value of its American operations.

Mr. Harper, a Conservative who generally favors limiting government influence in markets, credits Canada’s regulatory system for the banks’ good fortune and suggests that it should be a model for the world.

He’s not alone. Julie Dickson, the superintendent of financial institutions, has gone from being an obscure bureaucrat to something of a minor celebrity. A recent cover story in The Report on Business Magazine, which is published by The Globe and Mail newspaper, said she was “integral to the policy that is being credited with keeping the nation afloat during a financial storm that saw banks just about everywhere else in the world pushed to the brink because they had taken on too much leverage and excessive risk.”

Canada’s regulatory system, of course, is not perfect. And Mr. Harper’s enthusiasm aside, the health of its banking industry may have more to do with its structure than its watchdog.

Ms. Dickson’s office is known to be risk-averse. When the market for Canadian structured debt products collapsed because the banks, apparently at the suggestion of the regulator, declined to support it, Ms. Dickson rejected criticism from investors.

“Our primary job is to protect the interests of depositors,” she said at a news conference.

Her office also requires Canadian banks to maintain relatively large capital holdings. Brenda Lum, the managing director for Canadian financial institutions at DBRS, a debt rating agency in Toronto, said that Canadian banks have an average Tier 1 capital level of 10.8 percent.

The Federal Deposit Insurance Corporation calculated the similar number for all American banks at 10.74 percent as of March 31. But unlike banks in Canada, some large American banks fall far from that figure. Wells Fargo, for example, was at 8.3 percent on that date, and Bank of America stood at 4.5 percent, although it has since raised more than $26 billion in capital to improve that ratio.

Helping Ms. Dickson with her job were other government policies that ensured that subprime mortgages accounted for only a tiny portion of Canada’s housing market. And because Canadian tax rules never allowed mortgage interest deductibility, home purchases in Canada are not effectively subsidized by the government.

But looming above all of those factors is the scope and market power of Canadian banks within their home market. While many foreign banks have subsidiaries in Canada, Ms. Lum estimates that Canadian banks hold 80 to 85 percent of their home market. Most of that business, in turn, is concentrated in the five largest banks.

The big five are also one-stop shopping banks offering everything from retail services (a particularly profitable line of work) to investment banking through networks of branches and offices spanning the country. On top of that, government rules prohibit anyone or any company from owning more than 20 percent of a Canadian bank, effectively making it impossible for foreign competitors to enter the market through an acquisition.

All that makes for what Ms. Lum described as “an orderly market.”

While such order may seem desirable compared with the current alternative in the United States, it is not without significant side effects.

A report by the International Monetary Fund last year found that the resulting lack of competition makes life difficult for small borrowers.

“A range of analysts and business representatives have argued that the major banks, comfortable in their entrenched positions, have little incentive to venture into areas where borrowers are small, the cost of ascertaining creditworthiness may be higher and returns are more uncertain,” the I.M.F. paper said.

Catherine S. Swift, a former government and bank economist who is now the chairwoman and chief executive of the Canadian Federation of Independent Business, a lobbying group, criticized the banks for “going around and beating their chests right now.”

“While the United States has what we economists refer to as destructive competition, in Canada we have the opposite: ultraconservative financial institutions,” she said. “What we’d like to see is some true competition in the Canadian market.”

Being a central banker, Mark Carney, the governor of the Bank of Canada, is not as blunt as Ms. Swift. In fact, when testifying before the banking committee of Canada’s Senate last month, he didn’t even directly name the country’s bank regulator when speaking about it.

But Mr. Carney did suggest that Canada, and all Western countries, should control banks in a way that considers not just the health of those financial institutions, but the broader needs of the economy: “one of the most important things is that all regulators, in the broadest sense, must take into account the implications of their actions for financial system stability, that is, they must think about the system as a whole as well as their core responsibility.”

http://economix.blogs.nytimes.com/2009/06/08/canadas-way-how-our-northern-neighbors-do-banking/

reported by Moishe Alexander, CFC CEO

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Tony Clement, Minister of Industry, today announced that all of the measures in Canada’s Economic Action Plan to improve access to financing are in place and fully operational.

“To date, over $115 billion has been provided to improve the availability of financing for Canadian households and businesses, all of it on a commercial basis to protect the taxpayer,” said Minister Flaherty. “This has had a real impact on credit conditions in Canada. Household and business credit is growing and average interest rates have fallen steadily. This is good news for all Canadians.”

Minister Flaherty also announced that allocations under the $1-billion Small Enterprise Tranche of the Canadian Secured Credit Facility (CSCF) have been made, ensuring the facility reaches smaller participants in the loan and leasing market. Lenders from a cross-section of the vehicle and equipment financing industry have received the allocations. This brings the total allocated under the CSCF to $11 billion. A further $1 billion will be allocated in August.

“Giving smaller lenders in the loan and leasing market a chance to access credit is wholly consistent with Canada’s Economic Action Plan,” said Minister Clement. “Support for the financing of vehicles and equipment in Canada will also help bolster confidence in the Canadian auto industry at this critical time.”

Canada’s Economic Action Plan takes unprecedented action to improve access to credit and financing for Canadian families and businesses. Measures include the:

* Business Credit Availability Program
* Canadian Secured Credit Facility
* Insured Mortgage Purchase Program
* Canadian Lenders Assurance Facility
* Canadian Life Insurers Assurance Facility