Where They Will Be in the Spring

Canadian home sales pick up in September

Source: Hannif Highclass
Publish:MY BLOG: Toronto Real Estate: Oct 19, 2011

what you should expect

Many sellers want to wait until the spring before putting their home on the market. This might be for any of several reasons:

• They don’t want to be inconvenienced during the holiday season.

• They believe that they will see more potential buyers and as a result will get a higher price.

• In the northern part of the country, they might not want people walking through the snow and then into their house.

• All of the above

In a normal real estate market, this may make sense. However, this market has been anything but normal. This spring will also see some abnormalities. The biggest difference will be the direction prices will take.

In years past, the spring market would favor the seller because increased demand would outpace any increase in supply: the number of houses coming onto the market would not be as great as the number of buyers newly entering the market. In most situations, when demand is greater than supply, prices increase.

The reason this spring will be different is that the supply of homes coming to the market will be dramatically impacted by foreclosure properties being released by the banks. Many believe this increase in inventory will far outweigh buyer demand. In situations where supply is greater than demand, prices decrease.
Will This Actually Happen?

• Toronto, Win­nipeg and Hal­i­fax out­per­form­ing their U.S. “twins” Chicago, Minneapolis-St. Paul, and Boston

• Ottawa, Van­cou­ver and Cal­gary have sim­i­lar price trends to their U.S. “twins” Wash­ing­ton, D.C., Seat­tle and Houston

Major Cana­dian and Amer­i­can cities with sim­i­lar economies and geo­gra­phies are expe­ri­enc­ing vari­able price trends very  Spring(2010 / 2011) — with three Cana­dian cities out­per­form­ing their United States “twins” and three other Cana­dian cities hav­ing sim­i­lar price trends to their U.S. “twins”

“When you com­pare Cana­dian and Amer­i­can cities with sim­i­lar economies and geo­gra­phies — so-called “twin cities” — you see some dra­matic dif­fer­ences,” said Lawby. (Pres­i­dent of CENTURY 21 Canada)  Cana­dian cities are doing much bet­ter than their Amer­i­can twins.”

This will impact prices.
What Do Experts Believe the Impact Will Be?

Here are the pricing projections by

CMHC’s housing market

The seasonally adjusted annual rate1of housing starts was 205,900 units in September, according to Canada Mortgage and Housing Corporation (CMHC). This is up from 191,900 units in August 2011.

September’s seasonally adjusted annual rate of urban starts increased by 47.0 per cent in the Atlantic region, 32.0 per cent in Quebec and by 18.6 per cent in British Columbia, while urban starts decreased by 3.5 per cent in Ontario and by 12.1 per cent in the Prairie region.

The Canadian Real Estate Association (CREA)
According to statistics[1] released today by The Canadian Real Estate Association (CREA), national resale housing activity picked up in September 2011.

Highlights:

• Sales activity rose 2.7 per cent in September from the previous month.

• Holding in line with the ten-year average, activity during the first nine months of this year pulled ahead of sales over the same period last year.

• The number of newly listed homes held steady when compared to the previous month.

• The national housing market tightened in September from the month before, but remains firmly entrenched in balanced territory.

• The national average price posted the smallest year-over-year increase since January.

 

Bottom Line

You may pay a hefty price for the convenience of not having your property on the market right now.

Disclaimer: This blog covers the national housing market as a whole. Please check with a local real estate professional to discover how the following information will impact your region. GenieSABRE

REMEMBER: Real Estate Home Owners: If, you already own a home – good for you! May you be blessed with warmth in your home, love in your heart, peace in your soul and joy in your life. However, if for any reasons you do intend to move due to upsizing, downsizing, moving to different town or ??? — genieSABRE recommend you check out our main web site. You will not be disappointed! Renters: New immigrant, 1st. Time Buyers Renters – its time to stop making your landlord rich. genieSABRE FREE consultation, will help you & guide you through the whole process from finding the right home, to mortgage approvals, home inspection, lawyers etc Visit our main web, you will not be disappointed! Real Estate Investors: Home ownership should be your 1st. priority. If you own your own home – Good for you. But now is the time to take that second step – Buying Rental Property for investment. Commercial, retail or home. genieSABRE has extensive knowledge and experience in this field. As a developer of commercial /retail plazas (built 3 so far) and owners of residential rental homes, we can guide and advice you as to what is best for you according to your personal financial position. Call: Hannif Highclass @ 416.444.4252 http://www.geniesabre.com   Share Tweet