Canada's Housing Outlook

 Corporation (CMHC), the country's national housing authority, recently released its Housing Outlook for Canada.  According to the CMHC forecast, Canadians can look forward to two more years of a stable real estate market.  Here are some highlights of the forecast for 2012 and 2013:  
MLS® sales are expected to remain stable in Canada in 2012, with over 457,000 homes trading hands this year.
Sales are expected to rise slightly in 2013, to surpass 468,000 resale units sold
Canada's national housing market will remain in balanced territory, being neither a buyers nor a sellers market.
The balanced market is forecast to continue throughout 2012 and in 2013
The average MLS price will see a moderate increase from the 2011 national average price just above $363,000, edging up to $368,900 in 2012
Further price growth is expected to raise the average to $379,000 in 2013.
The Bank of Canada has held interest rates at near historic lows for every consecutive rate announcements since September 2010
Mortgage rates are expected to remain at near-historic lows, staying flat for most of 2012; then starting to increase moderately either late 2012/early 2013
Of course, this forecast only gives you the ‘big picture’ on the national scene.  Market information and house prices can vary dramatically within communities, between neighbourhoods, or even on the same street!  Your local Coldwell Banker real estate professional can give you up-to-date information on your local market, and tell you how to use that ‘insider’ information to your best advantage. Why not call and talk real estate!

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: The economic impact of Real Estate

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: The economic impact of Real Estate: The economic impact of Real Estate Canada’s real estate market is booming, and that’s good news for most Canadians – and not just home sell...

The economic impact of Real Estate

The economic impact of Real Estate

Canada’s real estate market is booming, and that’s good news for most Canadians – and not just home sellers.  The economic impact of a thriving real estate market has a far-reaching ‘ripple effect’ that extends into many aspects of Canadian life.

 A study commissioned by the Canadian Real Estate Association (CREA) and prepared by the Altus Clayton research company for the period of 2006 to 2008, indicated the following:

• Canada’s resale market generated an average of 202,750 jobs each year 
• This represents an average of $2.3 billion annually
• Each residential MLS transaction generated an average of $46,400 in additional consumer spending
• This includes the cost of moving and for post-move renovations after moving in
• The survey does not does not include any renovation expenditures by sellers to prepare their property for sale – if that aspect was included, the economic impact would be even greater.
• The economic impact varied by province – BC was highest with over $60,000 per transaction, while Atlantic provinces generated close to $30,000
• This variation in impact mirrors the level of house prices in the two regions, with BC being the site of Canada’s two most expensive housing markets, Vancouver and Victoria.

So, the next time you see news about a positive real estate market, and you think that has little to do with you --- think again.  Real estate is a cornerstone of the Canadian economy, and we all benefit from a strong and thriving market.   If you’d like more information about the real estate market in your community, contact your local Realtor® or myself, and take advantage of our expert advice.   

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Knowing the first-time buyer

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Knowing the first-time buyer: Knowing the first-time buyer In today’s competitive real estate market, more and more sellers are looking to target the increasingly import...

Knowing the first-time buyer

Knowing the first-time buyer

In today’s competitive real estate market, more and more sellers are looking to target the increasingly important consumer group of the first-time buyer.  The first step in reaching this target group is in knowing who this customer is, and then understanding their specialized wants and needs.

Just who is the first time buyer in terms of age, income, marital status, house price range?  There’s no one right answer to that question, especially these days.  First time buyers come from all ages and all walks of life.  Also, their demographic profile can vary dramatically from market to market, and even between different communities in the same major market area.  However, there are some interesting trends in the first time buyer demographics:

·         As home prices rose, it resulted in young people staying at home with their parents longer in order to save the necessary money for a down payment.  Not surprisingly then, the age of first time buyers has risen in recent years.

·         There’s been a major shift in first time buyers in terms of marital status.  Ten years ago, the vast majority were young married couples starting out their life together, with a hope for a growing family.  Today, while couples still represent the majority, we’re also seeing a far greater percentage of young professionals, especially single women, entering the home buying market.  These career-oriented people no longer want to wait for marriage before taking their first step on the property ladder.  They want to build equity and achieve the dream of home ownership without waiting for the right life partner to come along.  This group is a major force in low upkeep urban housing that is seen in the condo market.

·         Canada enjoys a very strong positive in-migration population, and these individuals will continue to fuel the first time buyer market.

One trend that we’re now starting to see is an increase in the percentage of first time buyers in the market.  With the escalating prices in recent years, some of these individuals were previously ‘locked out’ of the housing market.  Now with adjusting prices, historically low interest rates, and help from government initiatives such as the Land Transfer Tax Rebate, have resulted in some of the most affordable housing seen in most markets in years.  This is bringing a new buyer back into the market, as they are now seeing homeownership come back within their reach.

Want to know more about the first-time buyers market?  Give your Realtor® a or myself a call to find out more.

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Sharing the Cost of Home Ownership

Tom Flatt, Coldwell Banker J. Kazi Realty, Brokerage: Sharing the Cost of Home Ownership: Sharing the Cost of Home Ownership The high cost of real estate in some Canadian markets can present a challenge to people wanting to enter...

Sharing the Cost of Home Ownership

Sharing the Cost of Home Ownership

The high cost of real estate in some Canadian markets can present a challenge to people wanting to enter the housing market.  First-time buyers in particular may find they have to make adjustments to their vision of a dream home, and start with something more realistic.  It’s no wonder that young people in Canada are staying at home longer these days, in order to save for a down payment.  In fact, in these days of employment uncertainty many homebuyers today want a home that has the potential to generate income, and are looking for a property with a rental apartment or flat to help offset their mortgage payments.

There are other home-ownership alternatives to help buyers build some equity in the real estate market.  An option that may be of interest to some individuals is the joint purchase of a multiple-dwelling property by more than one group of buyers.  For example, a legal duplex might be jointly purchased by friends or relations, with each family group occupying one of the property’s units.  The duplex approach can work well in situations where young people plan to move away to marry, leaving their parents as “empty nesters”.  In this scenario, the family home is sold, with the parents buying one unit of a new duplex outright, and then banking their surplus funds. The younger generation then assumes the more manageable mortgage payments on the remaining half of the duplex’s price.  In this way, they can start to build equity immediately without having to come up with a large down payment, or getting into a high ratio mortgage.

In less formal arrangements, two couples might elect to jointly buy one single-family residence and share all the living space. This can prove to be a very stressful situation, and the best chance for success is usually when there is a family relationship between the two couples, such two siblings with their spouses.

Whatever method you use to ease the cost of homeownership, the most important thing to remember is to get the all the details worked out before you buy.  Everyone involved in the purchase should agree on all sub-lease and re-sale provisions “up front”.  For example, can one party move out and sublet their living space to someone else?  How will the upkeep and chores of the property be handled?  Who will decide what maintenance expenses are incurred and how will they be funded?  What happens when someone wants to sell? Does one party get the first right to buy out the other’s interest?  If so, how is a fair price determined? How long does the other owner have to make up their mind before the remaining partner sells their unit?  Or, is the entire property put on the market with all parties sharing the proceeds and then going their separate ways?

As you can see there are a lot of variables to consider.  Such important issues should not be left to chance.  Don’t expect that they’ll be sorted out easily when the time comes. The best course of action is to get a lawyer involved and draw up an agreement that clearly sets out the rights and obligations of all co-owners.

Remember, when you’re thinking of creative ways to ease the cost of owning a home, talk it over first with the expert.  Tell your real estate salesperson all about your plans, so they can ensure that you’re shown homes that conform to the appropriate zoning and municipal by-laws.  Best of all, your Realtor® may be able to suggest options that you’d never considered, and help you make your home ownership dream a reality.