Archive for the 'Canadian Home Prices' Category

November 26, 2018

There is one real estate opportunity that seems to only be growing in popularity: selling condos.

The Canadian condo market continues to boom. From 2016 to 2018, more than 14% of private mortgages came from condominiums.

In June 2018, residential construction starts across Canada surged to 248,000 units, driven by condos.

“While there has been some moderation in price growth and less speculative demand in the single-family home segment, prices for condominiums have continued to increase rapidly in some markets,” the Bank of Canada noted in its July 2018 Monetary Policy Report.

Condos have also benefitted from tougher mortgage rules and increased interest rates. As house prices have gone up, condos have remained the more affordable option. This means that not only are younger buyers opting for condos over traditional homes, but so are older buyers. For instance, some members of Generation X are choosing to move into condos for a smaller mortgage.

In 2017, three out of every four homes built were multi-family units, compared to 65% the decade before.

If you sell real estate in Canada, the signs are there that this is the time to consider selling condos, too.

Should you decide to join the condo market, or ramp up your efforts, here are some best practices to keep in mind:

  • Look at property details. Just like you would request a property report for a single-family dwelling, you should do the same for a condo. For instance, with a GeoWarehouse report you can see all condo units in a building, search by level, look up related PINs, access the full legal description, and more.
  • Don’t only consider constructed condos. Look also at pre-construction condos. New condo buildings are being constructed quickly, especially in larger urban areas like Toronto and Vancouver. Sell clients on making a decision early to beat the rush.
  • Condos aren’t just for younger buyers. As we mentioned above, condos used to be the millennials’ residence, but that’s not always the case these days. More and more older generations are choosing condos amid new mortgage rules, increased interest rates, or wanting to stay in an urban area. While millennials are certainly still a big market, they’re not the only market.
  • Look at what else the building offers. There may be additional assets included with a condo sale, like a parking space or storage lockers. Unlike a traditional dwelling type, a condo can come with other perks, too — security guards, an on-site gym, a luxury view, etc. Play up these features in your sales pitch.
  • Focus on unique features. Condos are a space sacrifice, especially if a potential buyer is used to a larger home. But because they are rising in popularity, there are many more options for comfortable condo living today, like urban agriculture, unique storage ideas, and two-in-one furniture items. Don’t be afraid to get creative with your staging.Access condo status certificates online. There is no need to request your condo status certificates by fax anymore. Instead, use a tool like GeoWarehouse to do it all online.

While the condo boom is continuing to thrive, it makes sense to take advantage if it’s in your area. GeoWarehouse can help you stay on top of the latest condo trends and access property information.

Learn more by calling 1-866-237-5937 or visit www.geowarehouse.ca.

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November 23, 2018

The Canadian real estate market is in a state of fluctuation, which can make determining a listing price difficult to say the least.

Between rising interest rates, mortgage stress testing regulations, uncertain house prices, increased competition, and the like, there are many factors that might be affecting your usual process for determining property value.

That said, there are several practices that you can use to set a listing price no matter what is happening in the Canadian housing market. Here are our top picks.

  1. Assess the Property Details

This is step number one because it should be on your list regardless of market conditions. You need to understand the property details. For instance, what year was the home built? What data is included in the Land Registry?

In order to start thinking about your listing price, you need to know the answers to these questions and more.

  1. Get an AVM

You may have considered getting an appraisal done — this can be a great idea. But have you thought about an automated valuation model (AVM) report as well?

An AVM report can confirm home value, ownership, and other details quickly and efficiently. It can estimate property value by comparing and analyzing property characteristics against public record data.  It doesn’t replace an appraisal, but it is a good companion to one.

While an AVM can’t review interior and exterior property conditions, some include street view imagery that can help identify issues with exterior conditions, such as property boundary discrepancies. It’s great to leverage automation and historical data analysis to generate the latest information on pricing and ownership and create a big picture report.

  1. Consider the MPAC Assessment

MPAC is the largest assessment jurisdiction in North America. It determines revenue requirements, municipal tax rates, and property tax collection for the Government of Ontario.

An MPAC assessment isn’t always the same as a property appraisal, and often listing prices are different from MPAC’s valuation. That said, it is still valuable information that can be used in your determination.

  1. View the Sales History

Along with the property details, you will also want to consider the sales history. While today’s market may be very different from the last time this house sold (particularly if it is an older home), that data is still important to review.

  1. Look Up Comparable Sales

One of the best ways to determine home value is to see how comparable properties are selling. You can get a real-time view of what similar houses have sold for and use that to set your listing price.

You can also narrow your search by neighbourhood to specifically understand the area where you are selling. Certain regions will be more desirable based on factors like school proximity, parks, shopping areas, and the like. This will stay in style even with a market shift.

  1. Use a House Price Index

The Teranet-National Bank House Price Index is released every month with up-to-date information on house prices across Canada. This digs into 11 different markets and the house price trends those regions are experiencing.

This is important for you to know when making your assessment.

  1. Examine Market Insights

In a shifting real estate market, you want to stay on top of the latest real estate trends. For instance, if you know that condos are some of the most popular dwelling types for millennials, and you are trying to set a listing price for a condo in an area that appeals to millennials, that will help make your decision.

The Teranet Market Insights Report is released regularly and contains data that you can use for your property valuation needs.

While it may be simpler to set listing prices during non-turbulent housing market conditions, it’s still possible to do so in more uncertain times. Be sure to do your due diligence and assess information from multiple sources. Trends can change so fast that you need to stay on top of the data.

Luckily, GeoWarehouse makes it easy to stay informed up-to-the-minute. Our property reports take data from the Province of Ontario Land Registration Information System (POLARIS), so you can trust the reports you receive are accurate and timely. They are also available almost instantly, so you can make a decision with the latest figures.

Learn all about our GeoWarehouse reports today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

Want more information on determining a listing price? Download our free eBook, Digital Property Evaluation in 1-2-3! Get your copy here: http://www2.geowarehouse.ca/property-evaluation-general/.

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NOVEMBER 15, 2018

Home price index down in October in all component markets except Montreal

In October the Teranet–National Bank National Composite House Price IndexTM was down 0.4% from the previous month.[1] An October decline is not the norm – this was only the fourth in 20 years of index history. It was also the first index decline in eight months. The most striking aspect of the retreat is its diffusion. For the first time since December 2014, the component indexes for 10 of the 11 metropolitan markets surveyed were down on the month – Victoria (−0.1%), Toronto (−0.2%), Winnipeg (−0.2%), Calgary (−0.3%), Ottawa-Gatineau (−0.4%), Hamilton (−0.5%), Edmonton (−0.7%), Vancouver (−0.8%), Quebec City (−1.0%) and Halifax (−1.0%). The exception was Montreal, whose seventh consecutive monthly gain (+0.2%) was consistent with its seller’s-market conditions. For Calgary it was the 10th month without a rise in the last 13 months, hardly surprising considering the worsening of market conditions over the period. For Vancouver it was the third consecutive month without a rise.

Teranet-National Bank National Composite House Price Index™

In October the composite index was up 2.8% from a year earlier, a larger 12-month rise than in August and September because a year earlier the index fell abruptly in those two months. October 12-month rises were well above the countrywide average in Victoria (5.2%) and Vancouver (4.6%) thanks to gains earlier this year and in Montreal (5.0%) and Ottawa-Gatineau (5.0%) thanks to gains in the last six months. Indexes were also up from a year earlier in Winnipeg (3.4%), Hamilton (2.8%), Halifax (2.4%) and Toronto (1.9%). Indexes were down from a year earlier in Edmonton (−0.5%), Quebec City (−0.6%) and Calgary (−1.4%).

Besides the Toronto and Hamilton indexes included in the composite index, indexes exist for sevenother urban areas of the Golden Horseshoe. In October, all of these were down from the previous month. Two of them, Barrie and Oshawa, were, like Toronto and Hamilton, below their peaks of Q3 2017. Indexes not included in the composite index also exist for seven markets outside the Golden Horseshoe, five of them in Ontario and two in B.C. In October. Three of these were down from the previous month. The 12-month rise of these indexes varied widely, from -0.1% in Thunder Bay to 11.4% in Windsor.

Of the 25 metropolitan-market indexes, only five did not decrease in October, the smallest diffusion of gains since December 2012.

For the full report including historical data, please visit www.housepriceindex.ca.

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October 12, 2018

OCTOBER 12, 2018

National Composite Index: Flat in September

In September the Teranet–National Bank National Composite House Price IndexTM came in flat from the month before,1 matching the historical average for September since 2010. Only five of the 11 metropolitan markets surveyed showed gains, the weakest diffusion in six months. These were Winnipeg (1.1%), Montreal (0.5%), Victoria (0.5%), Hamilton (0.2%) and Ottawa-Gatineau (0.1%). For Hamilton and Montreal, it was the sixth consecutive monthly rise, for cumulative gains of 5.8% and 4.3% respectively. For Ottawa-Gatineau it was the fifth straight rise for a cumulative gain of 7.8%. Of course, these gains incorporate usual upward price pressure from April to August. For Montreal and Ottawa-Gatineau, the rising trend still persists even with correction of these seasonal effects.

The indexes for Vancouver and Edmonton came in flat on the month. For Edmonton it was a sixth straight month without a decline, for a cumulative gain of 3.4% over the period. Indexes were down on the month for Toronto (−0.1%), Calgary (−0.1%), Halifax (−0.2%) and Quebec City (−0.6%). If the Vancouver index were corrected for seasonal variation, it would have shown retreats in each of the last four months. If the Calgary index were so corrected it would have shown retreats in each of the last three months. This observation is consistent with declines in home sales reported by the real estate boards of these two markets.

Teranet-National Bank National Composite House Price Index™

In September the composite index was up 2.1% from a year earlier, a larger 12-month rise than in August because the composite index began declining in September 2017. Thanks to advances earlier this year, the 12-month rise was well above the countrywide average in Vancouver (6.2%), Victoria (5.5%) and Halifax (4.8%), while very recent advances resulted in relatively large 12-month gains in Ottawa-Gatineau (5.1%) and Montréal (4.8%). Gains over a year earlier were smaller in Winnipeg (2.8%), Hamilton (1.4%) and Quebec City (0.7%). Three indexes were down from a year earlier: Edmonton (−0.5%), Toronto (−0.8%) and Calgary (−1.3%).

Besides the Toronto and Hamilton indexes included in the composite index, indexes exist for the seven other metropolitan areas of the Golden Horseshoe. In July, two of these, Barrie and Oshawa, were, like Toronto and Hamilton, below their peaks of Q3 2017. Indexes not included in the composite index also exist for seven markets outside the Golden Horseshoe, five of them in Ontario and two in B.C. The 12-month rise of these indexes varied widely, from 0.9% in Sudbury to 11.3% in Abbotsford-Mission and Windsor.

For the full report including historical data, please visit: www.housepriceindex.ca

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July 11, 2016

geo2The first quarter of 2016 has closed so we thought, what better time to recap Canadian housing numbers? A good starting point is the Teranet – National Bank House Price Index™ (HPI). The Teranet National Bank House Price Index reports the rate of change of Canadian single-family home prices.

We like to rely on this index for two reasons:

  1. Where the data comes from – data is derived from property records of public land registries – which is the most accurate source for land data.
  2. Coverage – the HPI covers 11 major Canadian Cities – Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa, Montréal, Québec and Halifax.

Here is how Q1 played out:

  • Jan 2016 – Home prices dropped by 0.1%
  • Feb 2016 – Home prices increased by 0.6%
  • Mar 2016 – Home prices Increased by 0.8%
  • Q2 Teaser: April 2016 – Home prices increased by 1.2%

Good news for real estate sales professionals – 3 out of 4 months saw increases. In fact, the past 3 months consecutively have shown increases.

The Vancouver and Toronto markets continue to fuel the market with red hot increases to property values as evidenced by house price indices across the board. The average price of a single family detached home in Canada was widely reported to have soared over 1 million dollars coming into 2016 with Canada’s average recently reported by CBC to be over $500,000 – you can read more on this here: http://www.cbc.ca/news/business/crea-house-prices-march-1.3537143.

Many have speculated that foreign investment is, at the least, behind what seems to be a boom in British Columbia, to the point where the government has even expressed concerns over supply vs. demand. Here are some interesting articles on the topic to whet your appetite:

Meanwhile, in Toronto, soaring house prices are pushing buyers to look outside of the city and we don’t just mean in the GTA. Toronto’s market has led to booms in Hamilton, Barrie and other cities that are not considered the GTA.

No doubt that the Bank of Canada maintaining the incredibly low lending rate of 0.5% is helping as well. With a strong first quarter, all indicators seem to point towards a strong spring and summer in this ever exciting Canadian real estate market. Let’s keep our fingers crossed that things continue to grow as they have been over the last few months!

For more on the Teranet – National Bank House Price Index™ please visit: http://www.housepriceindex.ca/.

Want to take advantage of the tools that give you a bigger piece of the action? Visit www.geowarehouse.ca today.

 

 

 

 

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geo2Many Canadian economists have speculated that the Canadian economy is at risk of being in a recession. This would appear to be very scary news considering that it has been widely reported that Canadians are carrying record levels of debt.

The question many have had is will this end up having a negative impact on the real estate market?

Look at urban centres like Toronto where it was recently reported that the average sale price of a single detached home has exceeded 1 million dollars. Will these markets stay hot?

Some speculate that urban centres may cool off while the “burbs” will heat up. One thing is for sure, when the economy falters and Canadians are struggling to maintain their housing payments with their other bills like payments to debt, some will look at downsizing. This may include moving a little bit further away to be able to buy more for less.

When Canadian families are struggling financially there may be less lower income families coming into the housing market, but folks moving to put cash flow back into their households can more than offset this.

In a strained economic environment you have to be even more diligent when pre-qualifying new clients. Why?

  1. Pre market-crash of 2008 – mortgage financing rules were more lax so there are a high volume of people walking around who took out mortgages at 90-95% the value of their homes, amortized over 35 years and so have less equity.
  1. People in debt generally turn to debt consolidation as a first measure before making the difficult decision to sell their home. This can result in 1 very large mortgage refinance or perhaps 2 or 3 additional mortgages behind the first mortgage.
  1. When people have financial problems they can fall behind making monthly payments to things like property taxes, condo fees, income taxes and other bills leading to property liens – the homeowner may not even know is one has been registered.

What do the above 3 scenarios have in common? They can all result in there not being enough equity to pay you!

You can mitigate this occurrence by doing a basic preliminary background check on new listings:

  1. Validate that your client is the legal homeowner
  2. Look at the sales history of the property
  3. Estimate the value by reviewing comparable sales
  4. Review financial encumbrances like mortgages
  5. Check for liens

An unstable or underperforming economy doesn’t necessarily mean a negative impact to the real estate market but what it does mean is that you have to be agile to adapt in conditions that may emerge as a result.

If you would like to be able to access a tool that enables you to perform the due diligence discussed in this article and more please visit www.geowarehouse.ca.  

 

 

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Canadian Home PricesAccording to a press release issued early this year, The Canadian Real Estate Association (CREA) is forecasting stronger sales than expected through this summer and fall. In the past 6 months the Teranet – National Bank House Price Index has reported month over month increases in house prices which would seem to signify the same.

The CREA release seems to credit the west coast for stronger increases than expected, while increases were weaker moving to the eastern side of the country. Projections were revised to include increased sales in BC, Alberta, Saskatchewan, Manitoba and Ontario – while Ontario’s numbers were noted to increase marginally.

According to CREA it is anticipated that nationally home prices will climb by approximately 3.7% in 2014, with the highest increases expected to occur in BC (an anticipated 8.4% increase). CREA touts Calgary, Toronto and parts of Quebec as areas where markets are well balanced and there is far more demand than supply.

The question is, if property prices are on the rise signifying more supply than demand, what does this mean to you and are you experiencing an increase in business?

You can read the full press release here http://www.propertywire.com/news/north-america/canada-house-price-outlook-201401028629.html.

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