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Archive for October, 2017

Staying on top of the latest real estate trends is important. In a recent report on international activity in U.S. residential real estate, a new trend seems to be surrounding Canadians snapping up a record number of properties in the United States at record prices. What’s going on?

The 2017 Profile of International Activity in U.S. Residential Real Estate report, released by the American National Association of Realtors, indicated foreign investment in American housing is at an all-new high, mainly because of a substantial increase in sales dollar volume from Canadian buyers.

The U.S. is seeing a large rise in out-of-country buyers according to the report, which also shows exponential growth in both the volume of foreign buyer transactions and the average price paid.

There are two foreign buyer types, resident and non-resident. Resident buyers have immigrated to the U.S., or have a long-term visa. Non-resident buyers use the home on occasion, maybe legitimately so. Yet, more often, they are just property speculators. According to the NAR’s report, most foreign buyers that come from China, India, and Mexico were resident buyers. Buyers from Canada and the United Kingdom were primarily non-residents.

With Canada’s housing prices remaining steady, the main reason for this trend in Canadian real estate seems to be that Canadian buyers want cheaper, more affordable housing to invest in – investments that some Canadian buyers can’t find at home. The NAR report notes that Canadians saw a rapid rise in domestic prices versus the rise in prices in the U.S. which could explain the attraction for Canadian buyers.

Between April 2015 and March 2016, foreign buyers picked up more than $100 billion in residential property – that’s almost 215,000 residential purchases in the United States. Another interesting fact from the report is that houses purchased by foreign buyers were generally priced higher than the median value of all U.S. homes. Chinese buyers purchased nearly 30 billion dollars’ worth of property. Canadians came in second with a record $19 billion worth of U.S. property purchased.

However, of all the foreign buyers, Canadians are the least likely to actually take up residency according to the report. Most are purchasing for a vacation home or property investment, with only a third planning to make the move. Another theory is that, after selling homes in markets such as Toronto and Vancouver, Canadian buyers find themselves with an abundance of capital, and with the more affordable options in the U.S., buyers can do more with that capital. A number of those are retirees moving to some of the top retiree states – Florida, Arizona, and Texas.

To learn more about this real estate trend, you can read NAR’s report here: https://www.nar.realtor/

At GeoWarehouse, we make buying and selling homes in Canada far easier. Find out more about the various features by visiting www.geowarehouse.ca today.

SOURCE: http://globalnews.ca/news/3611104/with-prices-at-home-surging-canadians-have-been-snapping-up-u-s-real-estate-en-masse/

October 10, 2017

The average house price in Canada in 2017 has taken an interesting journey over the course of the year. Over the past several years of unchanging, low interest rates, skyrocketing average home prices by city, and new government real estate regulations, it’s almost impossible to find anyone who agrees on what may happen next now that rates have finally risen and regulations have had time to take effect.

The Teranet-National Bank House Price Index™ derives its data directly from property records of public land registries – the most accurate source for land data. It covers 11 major Canadian cities – Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa, Montréal, Québec and Halifax.

The Teranet–National Bank House Price Index™ is an independent representation of the rate of change of Canadian single-family home prices. The estimate the Index provides is based on tracking observed or registered home prices over time using data collected from public land registries.

This data comes directly following the first Bank of Canada decision to significantly raise rates for the first time in nearly seven years. Years of low borrowing costs is seen by many to be the reason for Canada’s ongoing housing boom. What will the impacts of September’s interest rate increase be?

While there is some evidence showing sales may have dropped since then, as the HPI August report points to prices experiencing a dip, experts are not unified in their predictions. How have all the recent changes and the rate increase impacted housing prices in your recent transactions? Join the conversation @GeoWarehouse.

The average house price in Canada is reflected in the historical data of the Teranet-National Bank House Price Index™, available at www.housepriceindex.ca.





If real estate signs are any indication, Toronto and Vancouver continue to be two of Canada’s hottest real estate markets. According to recent reports from the Teranet-National Bank House Price Index, home prices have risen steadily over the past few months, with the biggest 12-month rises ever for Toronto and Hamilton. According to a recent Financial Post, Vancouver went up for the first time in five months by 0.7 percent! Both provinces introduced “foreign buyer tax” regulation in an effort to control rising prices, but it appears nothing can stop a hot market these days.

So, where is the next hot market? What can you do to discover the next great untapped area for real estate? Are there real estate signs you can look for?

Maybe you recently drove by the construction of a mini-mall in the middle of nowhere. That’s a sign of pending development. Or did you recently read about a new school being built? Chances are it’s being built in a growing neighbourhood. For years, the Mount Pleasant GO train station between Toronto and Guelph seemed like an odd place to build a commuter train stop – it was the only structure for miles in the middle of a field. Today it has to be one of the busiest commuter stops on the Kitchener line with residential properties surrounding it as far as the eye can see.

New up-and-coming areas don’t necessarily have to be new developments. Some of the best real estate markets are dirt-cheap compared to Toronto and Vancouver, but that certainly doesn’t mean they’re going up in value.

So, how can you tell if an existing area is destined for growth? Here are some common real estate signs that point towards a future hot market in established communities:

  • They are usually second- or third-tier cities in terms of population.
  • There are cultural and postsecondary institutions nearby.
  • The area has a long history and diverse economy.
  • The prices are low, but the demand is starting to grow.

Another way to find a new hot market is to look outside of existing hot markets. In places like Toronto and Vancouver, as home prices steadily rise, more buyers will continue to choose the suburbs for affordable housing. People like to live close to urban hot spots with handy amenities and lively neighbourhoods, but there is often not enough affordable property for most homebuyers. As a result, many people have to look further out from cities to find homes in the right price range.

With GeoWarehouse, you can access detailed neighbourhood reports to help you predict the next hot market.

Visit www.geowarehouse.ca today to learn more about what this powerful program can do for you!







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