Canadian residential real estate future is solid
OTTAWA – January 23, 2008 – The Canadian housing market in 2007 set anumber of MLS® sales records, and the re-sale housing market is expected to remain at near record sales levels in 2008, according to The Canadian RealEstate Association.
Annual residential MLS® sales activity totaled 520,747 units in 2007, up 7.6 percent from 2006 levels. This was the largest annual sales growth since 2002, and the first time transactions via the MLS® systems of real estate boards in Canada have surpassed 500,000 units sold in one year.
“The results in 2007 show the strength and the affordability of the Canadianresidential market,” says CREA President Ann Bosley. “The statistics again show just how different the housing markets are in Canada and the United States. Canadian REALTORS® know that Canadian mortgage lenders correctly see that home prices will continue rising. We know there is still strong competition for mortgage business in Canada.”
Three key economic ingredients will keep Canada’s housing market on adifferent track from the United States. One is consumer confidence, the second is employment, and third is affordable interest rates. The Bank of Canada cutinterest rates on January 22nd because of weaker prospects for Canadianeconomic growth in 2008. “Those lower interest rates will also help temper the erosion in housing affordability due to additional home price increases,” Bosley added. The Bank of Canada is expected to cut its trend-setting rate again in March.
CREA’s Chief Economist Gregory Klump says that the Canadian housing market in 2008 will pull back from the breakneck pace set in 2007, but this is still forecast to be the second-busiest year on record in almost all provinces, with residential unit sales reaching an estimated 512,705 units.
Average prices for MLS® home sales are expected to keep setting records in2008, although prices will increase more slowly as the market becomes morebalanced. In most provinces, the market will nevertheless remain historically tight – with the tightest markets being in Saskatchewan and Manitoba. Nationwide, the average residential price is forecast to increase 5.5 per cent to about $322,700.According to CREA’s Chief Economist, a larger supply of listings will be one ofthe balancing influences in 2008. New listings are forecast to rise in all provinces except Alberta, where they’re expected to retreat after spiking in late 2007.
“The challenge for the Canadian housing market will be the extent to whichemployment and consumer confidence may be affected by a slowdown in theU.S. economy,” Ann Bosley adds.“Slower job growth, not massive layoffs, are forecast for Canada in 2008,”CREA’s Chief Economist Gregory Klump adds. “Consumer confidence may besideswiped by stock market volatility, and reports that chances of a U.S.economic recession will put the brakes on the Canadian economy. With slowerjob growth, a low unemployment rate and the absence of widespread layoffs, consumer confidence will bounce back. The domestic economy and the housing market will weather the sub-prime fallout with the help of lower interest rates”.
For more information please contact:Bob Linney, CREA Communications Director, at 613-301-2219 or
rlinney@crea.caorGregory Klump, CREA Chief Economist, at 613-237-7111 or
gklump@crea.ca
BC Home Sales Smash Record Book
Vancouver, BC – January 11, 2008. British Columbia Real Estate Association (BCREA) reports residential sales volume on the Multiple Listing Service® (MLS®) in BC climbed 19.5 per cent to $45.1 billion in 2007, the highest level ever recorded. Residential unit sales increased 6.4 per cent to 102,811 units in 2007, only the second time BC home sales have exceeded the 100,000 unit mark (a total of 106,310 homes traded hands in 2005). The average MLS® residential price in the province reached a record $439,121 in 2007, up 12.3 per cent from 2006.
“Strong consumer demand buoyed by employment growth, rising wages and migration was a significant factor in BC’s housing markets last year,” said Cameron Muir, BCREA Chief Economist. “In the province’s major urban centres, sales activity reflected increasing demand for condominium apartments and townhouses. The largest gains in home prices occurred in the Kamloops, Okanagan and Kootenay markets where a legion of recreation, retiree and investment buyers put pressure on existing home inventories.”
“BC housing markets will experience less frenetic activity in 2008,” noted Muir. “Eroding affordability, rising new home completions adding to inventories and weaker economic growth are expected to provide a moderating influence this year.”
MLS® residential sales volume in December increased 24.2 per cent to $2.19 billion compared to the same period last year. Residential unit sales climbed 8.8 per cent to 4,791 units over the same period. The average residential sales price rose 14.2 per cent to $457,825 in December compared to December 2006.
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For more information, please contact:
Cameron MuirChief EconomistDirect: 604.742.2780Mobile: 778.229.1884Email:
cmuir@bcrea.bc.caBCREA represents 12 member real estate boards and their more than 17,500 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, required post-licensing courses and continuing education.
To demonstrate the profession’s commitment to improving
Quality of Life in BC communities, BCREA supports growth that encourages economic vitality, provides housing opportunities, respects the environment and builds communities with good schools and safe neighbourhoods.
For detailed statistical information, contact your
local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale.
This message is intended for the designated recipient only and may contain privileged or confidential information. If you have received it in error, please notify the sender immediately and delete the original. For BCREA's Privacy Policy, visit
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here.
Assessed values skyrocket for Prince George homeowners
Assessed values skyrocket for Prince George homeownersWednesday, 02 January 2008, 10:51 PST
MARK NIELSENCitizen staff
Reflecting the ongoing boom in real estate, the city's homeowners can expect major increases when they receive their notices of assessed value in the coming days, says Cal Benson, B.C. Assessment 's deputy assessor for Prince George.
"Most homes in Prince George are worth more on this year's assessment roll than they were on the 2007 assessment roll," Benson said in a statement issued Wednesday.
"Most homeowners in Prince George will see significant increases in the 20 per cent to 40 per cent range."
Light industrial properties in all areas of the city jumped by 25 to 35 per cent while downtown commercial properties rose 25 to 30 per cent, he added.
Municipalities use assessed values to set their property tax rates for the coming year, but a 30 per cent increase in won't mean a 30 per cent increase in your property tax bill.
Rather, Prince George city council will determine the increase in the tax levy and then set the rate so that the bill for the average single value home will rise by that amount.
Last year, the value of average single family home rose by 24.6 per cent but the property tax bill rose by 7.2 per cent, or $99, to $1,476.
This year, the value of a single-family home rose by an average 28.1 per cent.
For 2008, the city's total assessment roll has jumped by $1.47 billion, or 26.7 per cent, to $6.98 billion an all time high for the city both in terms of increase and overall total, continuing a rise that began in 2002 following a four-year lull.
New construction accounted for $113 million of that increase, with new single family homes making up $87 million of that total.
Notices have been sent to more than 29,000 property owners in Prince George.
Assessments are based on the property's estimated market value as of July 1, 2007. Numbers from the B.C. Northern Real Estate Board indicate the sale price for a single-family home had peaked at about that time at $241,563 and by October it had dropped slightly to $239,392. Year-end numbers were not available on Wednesday.
Appraisers analyze current sales in the area, as well as considering other characteristics such as size, age, quality, condition, view and location.
Property owners who feel their assessment does not reflect market value as of July 1, or see incorrect information on their notice, should contact the B.C. Assessment office indicated on their notice. Those who are still concerned after speaking to B.C. Assessment may submit a written request by Jan. 31 for an independent review by a property assessment review panel.
The panels, independent of B.C. Assessment, are appointed annually by the Ministry of Small Business and Revenue, and meet between Feb. 1 and March 15 to hear formal complaints.
The Prince George Assessment office is located at 1777 Third Ave., suite 200. During the month of January, office hours are 8:30 a.m. to 5 p.m.
Fact Box
Assessment comparisons for Prince George
Neighbourhood 20062007 $ increase % increase
College Heights $219,800 $267,300 $47,500 21.6 %
Hart Highlands/Nechako Ridge $235,500 $306,300 $70,800 30.1%
Lakewood/Heritage/Foothills $183,200 $233,900 $50,700 27.7%
VLA subdivision $84,300 $121,400 $37,100 44%
Strip commercial $2.17 M $2.43 M $259,000 11.9%
