Canadian Housing Market Outlook: CMHC Report
The Canada Mortgage and Housing Corporation has released a report for the first quarter of 2011. The headline of the report reads:
Canada’s Housing Market Is Stabilizing
This will come as great news for many home owners and Real Estate professionals. However, what does it mean to you if you are thinking about buying a home this year? Here are some of the highlights from the report. To read the full report click on the link at the bottom of the post.
Housing starts: Over the course of 2010, housing starts moderated from their strong pace at the beginning of the year ending up at 189,930 units started. Looking ahead, housing starts will be in line with demographic fundamentals. Housing starts are forecast to be 177,600 units for 2011 and 183,800 units for 2012.
Resales: Sales of existing homes through the Multiple Listing Service® (MLS®)2 have regained traction in the fourth quarter of 2010. MLS® sales will experience a minor decline in 2011 before increasing in 2012. Overall, 441,500 sales are expected in
2011, followed by 462,900 in 2012.
Resale prices: The average MLS® price edged higher in the fourth quarter of 2010 and is expected to grow modestly moving forward as market conditions will remain balanced. For 2011, the average MLS® price is forecast to be $348,900 while 2012 will see a further increase to $358,200.
Provincial Spotlight
Alberta and B.C.: Housing starts will moderate in all areas of Canada except British Columbia and Alberta. In 2011, starts are forecast to increase by 1.6 per cent in B.C. and will remain steady in Alberta.
Ontario: A recovering economy and improving employment situation will push Ontario starts up, but not until 2012. As is the case for most other provinces, new home construction growth is expected to slow in 2011.
National Housing Outlook
In Detail
After a strong start in 2010, housing starts moderated in the second half of the year. Housing starts are expected to edge lower in the first quarter of 2011 after which they will trend gradually higher, reaching a seasonally adjusted annual rate of 178,990 units by the fourth quarter. Given the degree of economic uncertainty, we have considered an array of economic scenarios to generate a range for the housing outlook in 2011 and 2012. Accordingly, we expect starts to be between 157,300 and 192,900 units in 2011 and between 154,600 and 211,200 units in 2012. CMHC’s point forecast for housing starts is for a decrease from 189,930 units in 2010 to 177,600 in 2011 then increasing to 183,800 in 2012
Housing starts are forecast to be down in all areas of Canada, except for Alberta and British Columbia in 2011. In 2012, housing starts are forecast to increase in British Columbia, Alberta, and Ontario, and to decrease in the remaining provinces.
Measures recently announced for government-backed mortgage insurance will moderate housing starts activity. Some potential buyers will have to save a larger minimum down payment in order to qualify for mortgage insurance and thus postpone their purchase. Alternatively, some potential buyers may buy smaller, less expensive homes. The new measures, however, are only a few of the many factors that will affect the new housing market.
To read the full report, click here.
Ready to Buy? Advice From A Realtor
By Colette Gerber
Ladies, did you know that it’s a Buyer’s market? And did you know about 35% of people buying their first home are single women? As a group we (yes, I too am single) have more disposable income than any other time in history. After you’ve made the decision to buy, the first step should be to obtain mortgage pre-approval.
Lenders are beginning to recognize the power women wield with their disposable income and are willing to lend generously to single females. Personally, I prefer to use a mortgage broker since they will shop a number of lenders to ensure you get the best possible rate without gender bias. Mortgage pre-appproval gives you clout when it comes time to make an offer to purchase. Knowing that you have financing in place, sellers will take your offer seriously. As well, the pre-approval letter-which you should get in writing- establishes how much you can spend on real estate. This ensures you are looking in the correct price range.
In the current Buyer’s market there is a larger inventory of real estate than there are people wanting to buy. As a Buyer, this gives you the opportunity to look at multiple properties and give some thought as to what you like. For most properties, multiple offers are not currently a concern. This is good news since it takes the pressure off having to make a quick decision. However, having said that, if you find something you really like you should have your Realtor write an offer as soon as possible. If the property is that good, chances are others will feel the same way and you don’t want to take a chance and lose the property.
Let’s talk about Realtors for a moment. Did you know that as a Buyer it doesn’t cost you anything to work with a Realtor? Realtors get paid by the Seller only when a deal completes. Working with a Realtor can save you time, money and inconvenience. Time: they search the listings every day to see if anything suits your criteria so you don’t have to spend time on the computer. Money: when it comes time to negotiate, they will do everything they can to ensure you get the best possible purchase price. Inconvenience: they know the pitfalls a Buyer can encounter so a good Realtor will stay involved in the entire buying process, until they hand you your keys. Women know the importance of listening. They understand you want great bathrooms, need closet space to accomodate your shoes and that you don’t care if the floor is ¼” or ½” real or faux wood. I encourage you to work with a female Realtor who “gets” what you want…..
Colette Gerber is RE/MAX Realtor who works anywhere in the Lower Mainland that the business takes her. She was recently awarded her Accredited Buyer’s Agent designation, joining the 1 ½% of BC Realtors with this prestigious accreditation. You can contact Colette by visiting www.colettegerber.com
Independent Women Understand the Benefits of Buying a Home
By Kristin Woolard
It’s becoming more and more apparent that women are increasingly taking the reins when it comes to home purchases. There is a growing trend among single women – and, more precisely, professional single women – who are becoming independent homeowners. In two recent TD Canada Trust National Polls, the results definitely support this notion.
A recent IPSOS-Reid survey focused on women aged 20-45. The poll shows that the average age of first-time buyers was 29, 82% were single women, four in five had no children and almost half had obtained a university degree.
The Home is where her heart is: 3rd annual TD Canada Trust Women and Home Ownership Poll reveals the growing importance of having a place to call your own. Chris Wisniewski, Group Product Manager, Real Estate Secured Lending at TD Canada Trust was quoted as saying, “Even though the comforts of home have become increasingly important to women, the financial reasons for homeownership have also increased in importance.”
In this late-2009 poll, 44% of women ranked financial security as the best thing about homeownership compared to 23% of a similar sample of women in 2008. Second on the list of best things about owning a home is not having to pay rent or pay other people period (38% in 2009 versus 13% in 2008).
More people are looking for ways to become financially stable again after the economic downturn of 2008, and investing in real estate and building equity for themselves are ways to invest in their future – building financial security.
Women are taking advantage of the low rates and recognizing homeownership is more affordable. For only a couple of hundred dollars more a month they can own a place of their own where they can decorate and renovate to suit their own taste or even have a garden if they so choose.
Seeking expert advice
One of the amazing things about women looking to invest in real estate is that they are getting more advice before they make the decision to enter the market. They are seeking out mortgage experts and real estate agents, and building a plan for the perfect entry into the market. They are making lists of areas in which they are interested in purchasing, itemizing amenities they would need in their ideal neighborhoods, ensuring they have all the facts around closing costs and fees associated with making the purchase, and securing a mortgage.
Buying a home is an immense decision and can feel overwhelming. The professionals you decide to use should feel right. Ask friends and family for referrals to someone they’ve used before, and take the time to interview Mortgage Brokers and Realtors to get a good sense of their professional style, experience and personality. You will be working with them closely – possibly for months – so interactions should feel comfortable, and they should be knowledgeable and responsive even to the smallest question.
The more prepared you are, the smoother the experience will be so do a little research on your own over the Internet to get a good idea of what types of properties and areas are of interest to you. Make a list of questions to ask your Broker or Realtor – and keep it on hand so you can add to it as more questions arise.
Interest rates are the lowest they’ve been in history and they are set to go up. Most industry professionals believe that when they do start to rise – as early as this July – they will go up fairly drastically. There has never been a better time for women to make the decision to get into the real estate market to find the perfect place to call home.
Kristin Woolard is a Mortgage Broker with Dominion Lending Centres BC Mortgage Group based in Port Coquitlam. She can be reached at: 604-939-8777; kwoolard@dominionlending.ca; www.kristinwoolard.ca
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