Thursday, October 15, 2009

House sales up 18% in Q3

CBC News

Some 135,182 homes were sold across Canada in the third quarter, up 18 per cent from a year earlier and the most ever for the period, the Canadian Real Estate Association said Thursday.

It's the biggest year-over-year increase since early 2002, the group says.

Building on two previous quarterly increases, seasonally adjusted home sales on the agency's Multiple Listing Service now stands 48 per cent above the low reached in the fourth quarter last year.

Quarterly activity increases in Vancouver (34 per cent), Toronto (11 per cent), and Calgary (19 per cent) were the largest contributors to the national increase.

Climbing to $327,736, the average price of a house in Canada 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 CREA said

The national 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 September. Ontario posted the highest average price on record in the province.

An increase in sales activity and fewer new listings are drawing down inventories compared to year-ago levels.

Nationally, the number of months of inventory was 4.9 months in September, down slightly compared to August, and well down from the recessionary peak of 12.8 months in January.
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note: This is great news, but I'm not sure I buy it. Has the economy been artifically inflated through goverment spending in all OECD countries? When the stimlus money runs out, are we back to square one? All market economies run on consumer confidence and if that confidence is not there, the economy is going to go back to where it was. The largest consumers are in the United states and Japan and if they are not spending then the economies of the developed countries will suffer for many years to come.

From what I see in our local market things are still on a downward slide with prices dropping and consumer confidence at a all time low. I do not believe we have hit rock bottom yet, nor do I have confidence in the so called experts. Time will tell. I believe, a discerning buyer and an astute seller need expert advice more these days than ever. Give me a call at 403-564-4518, if I can help.


John Prince, Alberta licensed real estate agent, CENTURY 21 'THE PROFESSIONALS LTD.' (Crowsnest Pass Real Estate). Serving the Crowsnest Pass and area. Call me directly at 403-564-4518 or by email at: johnprince@shaw.ca

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Wednesday, October 14, 2009

Several Canadian banks raise mortgage rates

By: The Canadian Press

TORONTO — Several Canadian banks (TSX:BNS, TSX:CM, TSX:BMO) raised their posted rates for closed, fixed rate mortgages by up to 0.35 percentage points effective Wednesday.
Scotiabank, CIBC and the Bank of Montreal all raised their five-year closed rate by 0.35 percentage points.

Increases for other mortgages ranging from one year to 10 years ranged from no change to 0.35 percentage points.

The change follows a similar move by the Royal Bank to raise rates last week.
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note: Our fragile economic recovery hinges on the ability of consumers to take on debt, and with rates climbing that means more money going to interest payments and less circulating in the general economy. In layman's terms... that ain't good.

Where do you think housing prices will be next summer in a climate of increased taxation (hello HST) and higher mortgage payments? The U.S. economy started its slide when many American homeowners woke up to find themselves owing more on their homes than they were worth. The technical term is negative equity.

Interest rates don't have to climb into double digits for our housing market to take a nose dive, even a modest climb to just 6% will have 'For Sale' signs popping up like dandelions. A mere 10% drop in equity will have a significant number of home owners owing more on their homes than their property is worth.

Higher taxes, higher debt payments, higher unemployment...it might just be time to legalize marijuana. At least that's a high that can be enjoyed.


John Prince, Alberta licensed real estate agent, CENTURY 21 'THE PROFESSIONALS LTD.' (Crowsnest Pass Real Estate). Serving the Crowsnest Pass and area. Call me directly at 403-564-4518 or by email at: johnprince@shaw.ca

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