Hottest April on record for resale housing market

Ottawa, May 5,2010 : Members of the Ottawa Real Estate Board sold 1,841 residential properties in April through the Board’s Multiple Listing Service® system compared with 1,591 in April 2009, an increase of 15.7 per cent. Of those sales, 425 were in the condominium property class, while 1,416 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“Last month’s sales blew away the record for April, which is always one of the busiest months of the year for our market,” said Board President Pierre de Varennes. “The increased sales activity may be partially due to buyers trying to avoid the impending HST and the mortgage changes that came into effect on April 19, but also demonstrates that consumers feel confident about our local economy,” he added.

The average sale price of residential properties, including condominiums, sold in April in the Ottawa area was $332,979, an increase of 11.6 per cent over April 2009. The average sale price for a condominium-class property was $254,220, an increase of 17.4 per cent over April 2009. The average sale price of a residential-class property was $356,617, an increase of 11.7 per cent over April 2009. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

The Ottawa Real Estate Board is an industry association of 2,590 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to effect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board’s internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.mls.ca and www.ICX.ca. Information about listings and open houses is also available in the Board’s weekly newspaper, Ottawa Real Estate Guide, available free at 700 locations across the Ottawa area.

Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA  (REALTOR®) and/or the quality of services they provide (MLS®).

Tags: , ,

Permalink | Comments (0)

Ottawa housing starts surge in February

  

BY BERT HILL, THE OTTAWA CITIZEN; WITH FILES FROM FINANCIAL POST

 

MARCH 9, 2010

Ottawa housing starts more than doubled in February as builders responded to strong market demand.

On Monday, Canada Mortgage and Housing Corporation (CMHC) said that work started on 304 units, up 122

per cent from 137 in February 2009 when builders and buyers were worried about the impact of the recession

and financial crisis.

For the first two months of the year, construction started on 675 units, up 23 per cent from a year ago but

trailing slightly behind 2008, which was a strong construction year.

"Ottawa's stable economy continues to support the housing market against a sluggish global economy," said

Sanra Pérez Torres, senior analyst at CMHC.

"Although the 23-per-cent increase in housing construction is significant, the 675 year-to-date starts match the

average since (2000)."

Construction of new single-family units drove the gains, rising 135 per cent to 148 units. Work started on 108

row housing units, up 58 per cent. There were smaller gains in apartment and semi-detached housing activity.

Builders were busiest in Cumberland and Gloucester where more than half the new construction took place.

"Even though prices are on the rise, homeownership in Ottawa remains within reach for many households as

mortgage rates remain low," said Pérez Torres.

Meanwhile, Canadian home construction rose by a more-than-expected 6.1 per cent to 196,700 units in

February, CMHC reported. That was up from 185,400 units in January and above economists' forecasts of

190,000 units for February.

"The gain in February housing starts was concentrated in the multiple starts segment, particularly in Toronto,"

said CMHC's chief economist Bob Dugan.

Urban housing starts were up nine per cent from January to 179,100 units on a seasonally adjusted basis, with

multiple units rising 19.1 per cent to 89,900 and single starts increasing 0.5 per cent to 89,200 units.

Ontario recorded a 28.6 per cent gain in February, while Atlantic Canada rose 14.3 per cent, the Prairie region

increased 10.8 per cent and British Columbia was up eight per cent. Meanwhile, Quebec saw housing starts

decline 14.1 per cent.

Ian Pollick, economics strategist at TD Securities, said February's gain shows "the new homes market is slowly

coming back to life...."

"However, we caution that the pace of advance will likely be hard pressed to eke out similar gains later in the

year, mainly as a result of enthusiastic buyers attempting to close transactions ahead of the regulatory (new

mortgage rules) and (harmonized sales) tax changes coming into effect mid-2010," he said.

© Copyright (c) The Ottawa Citizen

 

Analyst credits 'stable economy'; national starts up 6.1 per cent in month

 

 

 

Follow us on twitter www.twitter.com/rosatoteam and join us on our facebook page www.tinyurl.com/rosatoteam !!

Leo and Angelika Rosato 613-720-4888

Tags: , ,

Permalink | Comments (1)

Bank of Canada sticks to low interest rates

 

 Jeremy Torobin Ottawa — Globe and Mail Update

 

The Bank of Canada kept its benchmark lending rate at a record low 0.25 per cent Tuesday, and reasserted a plan to keep

it there through the middle of the year depending on the outlook for inflation, saying slack remains in the economy and

that the global recovery still depends on government spending and low interest rates.

“Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the

end of the second quarter of 2010,” Governor Mark Carney and his rate-setting panel said in the statement accompanying

their decision, echoing the wording in their December statement.

The bank repeated that policy makers see inflation returning to their 2 per cent target in the second half of 2011 and risks

to that projection “are tilted slightly to the downside,” a reminder to markets that unless this changes policy makers are

unlikely to speed up a return to higher rates. The bank also extended its schedule of term purchase and resale agreements,

a mechanism designed to help the overnight rate achieve its target level, with the longest maturities coinciding with July,

another sign that it's unlikely they'll tighten before then.

While the central bank said the outlook for global growth through the next two years is “somewhat stronger” than policy

makers projected in an October forecast that they'll update on Thursday, the global recovery that's under way “continues

to depend on exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support financial

systems.”

The central bank tweaked its growth forecast slightly, saying the Canadian economy will expand by 2.9 per cent this year

and 3.5 per cent in 2011 after shrinking by 2.5 per cent last year. In October the bank said the economy would grow 3 per

cent this year and 3.3 per cent in 2011, after contracting 2.4 per cent in 2009.

Policy makers also said Canada's economy operated about 3.25 per cent below its production capacity between October

and December as “considerable excess supply remains,” and repeated that it will return to full tilt in the third quarter of

2011.

Mr. Carney and his deputies largely echoed language from their December statement on the strong Canadian dollar's

effect on exporters, saying the loonie's “persistent strength” combined with “the low absolute level of U.S. demand”

continue to act as “significant drags on economic activity in Canada.”

Domestic demand is driving the economic recovery, the bank said, and the private sector “should become the sole driver

of domestic demand growth in 2011.” So far, the economic recovery has relied heavily on fiscal stimulus spending that's

allowed Canadian companies to start hiring again.

The central bank said nothing in its statement about the hot housing market, where some observers continue to warn low

interest rates might be fuelling a new bubble.

On Thursday, the bank will release a full quarterly update of its growth and inflation forecasts. Policy makers' next

interest-rate decision is scheduled for March 2.

 Tuesday, Jan. 19, 2010Central bank says again that, depending on inflation, borrowing costs will hold at record lows until middle of year

 Leo and Angelika Rosato 613-720-4888

www.Twitter.com/RosatoTeam

www.tinyurl.com/RosatoTeam

Tags:

Permalink | Comments (1)

Housing Market to Strengthen in 2010

 

OTTAWA, November 2, 2009 — Housing starts have started to recover and are expected to continue to improve in the second half of 2009. Starts are expected to reach 141,900 for the year and will increase to 164,900 for 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) fourth quarter Housing Market Outlook, Canada Edition* report.

“We expect housing markets across Canada to strengthen leading into and over the course of 2010 as economic conditions improve”, said Bob Dugan, Chief Economist for CMHC.

“Demand for existing homes has rebounded since the beginning of the year. In addition, lower inventory levels characterize both the new and existing home markets. As a result, stronger housing demand will be reflected in higher levels of housing starts in 2010”, said Mr. Dugan.

The strong pace of MLS® 1 sales seen in the second and third quarters of this year reflects, in part, activity that was delayed in the previous two quarters and is not likely to be sustained. The level of sales is expected to move back closer in line with anticipated economic conditions. As a result, existing home sales, as measured by the Multiple Listing Service (MLS®), will reach 441,300 units in 2009 and increase to 445,150 units in 2010. The average MLS® price is expected to be $312,950 in 2009 and $324,500 in 2010.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

* The forecasts included in the Housing Market Outlook are based on information available as of October 1, 2009. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

1 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces.

Information on this release:

Charles Sauriol
CMHC
Media Relations
613-748-2799
csauriol@cmhc-schl.gc.ca 

 

  

Find out What the Home Down the Street sold for www.SoldHomesOnline.com  

Follow us on twitter www.twitter.com/rosatoteam and join us on our facebook page www.tinyurl.com/rosatoteam !!

Leo and Angelika Rosato 613-720-4888

Tags: ,

Permalink | Comments (2)

MLS Home Sales Grow Stronger in Third Quarter

OTTAWA – October 15th, 2009 – National resale housing activity climbed to the highest level of any third quarter on record.

Actual (not seasonally adjusted) home sales via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards totalled 135,182 units in the third quarter of 2009, according to statistics released by The Canadian Real Estate Association (CREA). This is the highest level of activity on record for the period from July to September. The number of transactions was up 18 per cent from the third quarter of last year, representing the biggest year-over-year increase since early 2002.

Seasonally adjusted national MLS® home sales numbered 127,941 units in the third quarter, up 12 per cent from the previous quarter. Building on two previous quarterly increases, seasonally adjusted MLS® home sales activity now stands 48 per cent above the low reached in the fourth quarter last year.

"Momentum for sales activity remained strong throughout the third quarter," said CREA President Dale Ripplinger. "Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market."

Seasonally adjusted sales activity in the third quarter was up from the previous quarter in over 80 per cent of local markets. Quarterly activity increases in Vancouver (34 per cent), Toronto (11 per cent), and Calgary (19 per cent) contributed most to the national increase in activity.

Some 42,958 homes traded hands via the MLS® Systems of real estate boards in Canada in September 2009 on a seasonally adjusted basis. This represents an increase of 1.5 per cent from August, and lifts seasonally adjusted activity 63 per cent above the low in January.

Actual (not seasonally adjusted) MLS® home sales activity remained strong throughout the quarter. Resale activity in September 2009 posted the fourth consecutive increase from year-ago levels, all of which exceeded 15 per cent. Sales numbered 42,497 in September, up 17 per cent year-over-year and a new record for the month. Year-over-year activity increases in Toronto (28 per cent) and Vancouver (124 per cent) were the driving force behind the increase in actual (not seasonally adjusted) national sales activity in September.

Climbing to $327,736, the national MLS® residential average price rose 11 per cent from the same quarter last year. The national average price continues to be skewed upward by a sustained increase in sales activity, including a sharp rebound in activity at the higher end of the price spectrum, in some of Canada’s priciest markets.

The national MLS® residential average price surpassed all previous monthly levels in September 2009, rising 13.6 per cent year-over-year to $331,602. July and August also posted new average price records for their respective months. A number of provinces set new average price records for the month of September, and Ontario posted the highest average price on record.

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 up 9.3 per cent year-over-year in September 2009.

On a seasonally adjusted basis, the supply of homes coming onto the MLS® market edged up in the third quarter after four consecutive quarterly declines. Seasonally adjusted MLS® residential new listings were up one per cent from the previous quarter to 199,824 units. The increase reflects a quarterly rise in the number of new listings in British Columbia and Ontario, Prince Edward Island, and Newfoundland & Labrador. New listings remained stable or continued to retreat in other provinces.

While the small rise in seasonally adjusted new listings suggests that the number of homes coming onto the market may soon begin to edge higher, the number of new listings remains well down from year-ago levels. Barring a sudden unforeseen spike in levels, new listings are likely to remain down from year-ago levels for some time.

Actual (not seasonally adjusted) new listings were down 12.5 per cent compared to the third quarter of 2008 after posting year-over-year decreases in each of the previous quarters. Newfoundland & Labrador is the only province in which new listings were up from year-ago levels.

An increase in sales activity and fewer new listings are drawing down inventories compared to year-ago levels. There were 208,215 homes listed for sale on the MLS® Systems of real estate boards in Canada at the end of September 2009, down 16 per cent from a year earlier. This is the fifth consecutive year-over-year decline in active listings, and the largest decline in more than six years.

Nationally, the number of months of inventory was 4.9 months in September 2009. This is down slightly compared to August, and remains well down from the recessionary peak of 12.8 months in January 2009. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The seasonally adjusted residential dollar volume for MLS® home sales increased 20 per cent on a quarter-overquarter basis to $42.1 billion in the third quarter of 2009, the highest level on record. New provincial records were also set in British Columbia and Ontario, which propelled the national figure to a new high.

"Monthly sales activity remained on a strong upward trajectory throughout the third quarter in British Columbia, while showing signs that it may be topping out in other provinces," said CREA Chief Economist Gregory Klump. "On balance, this suggests that sales activity may be starting to plateau after having climbed rapidly earlier this year."

"Headline average price increases over the rest of the year are expected to prompt sellers to return to the market after having retreated to the sidelines late last year and earlier this year," he added. "An increase in new listings will help keep a lid on price increases. Price increases over the rest of 2009 and early next year are likely to reflect declining average prices late last year and earlier this year."

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

Tags: ,

Permalink | Comments (0)