Friday, May 31, 2013

The market

Housing Starts Continued to Fall in Canada and Québec in April 2013

http://www.fciq.ca/Nouvelles_economiques/Mise_en_chantier_EN.html

Housing Starts Continued to Fall in Canada and Québec in April 2013 - See more at: http://www.fciq.ca/Nouvelles_economiques/Mise_en_chantier_EN.html#sthash.oHktzQO6.dpuf

According to preliminary data from the Canada Mortgage and Housing Corporation (CMHC), housing starts in Canadian centres with 10,000 or more inhabitants fell by 29 per cent in April 2013 compared to April 2012. In total, there were 15,390 housing starts in Canadian urban centres in April 2013, compared to 21,749 starts in April of last year.

In Québec, after registering decreases of 24 per cent in February and 20 per cent in March, the number of housing starts fell by 40 per cent in April, with a total of 3,179 new constructions.

Most of the province’s Census Metropolitan Areas (CMAs) registered a drop in housing starts compared to April 2012. The Gatineau and Québec City CMAs both registered a 46 per cent decrease, and the Montréal CMA registered a drop of 43 per cent. The Saguenay and Sherbrooke CMAs posted respective decreases of 14 and 18 per cent, while the Trois-Rivières CMA fared better with housing starts remaining relatively stable compared to April of last year.

Preliminary housing start data are published by the Canada Mortgage and Housing Corporation (CMHC) on the sixth working day of every month. The data released by the CMHC account for the number of dwellings for which construction has started during the month in question. Data are issued monthly for the six Census Metropolitan Areas and for urban centres with a population of 50,000 to 99,999 inhabitants (Drummondville, Granby, Saint-Hyacinthe, Shawinigan and Saint-Jean-sur-Richelieu), and they distinguish between single-detached houses and multiple dwelling units (semi-detached or townhouses and apartments). Housing start data for urban centres with 10,000 to 49,999 inhabitants are issued on a quarterly basis.

Housing Starts and the Existing-Home Market in Québec

Housing starts, as an indicator of the residential construction market, provide valuable information on the vitality of the real estate industry in general. However, if the increase in the number of new dwellings is greater than the long-term household formation trend, this situation would lead to an increase in the inventory of new, unsold homes, and could compete with the market of existing homes.

- See more at: http://www.fciq.ca/Nouvelles_economiques/Mise_en_chantier_EN.html#sthash.oHktzQO6.dpuf

Housing Starts Continued to Fall in Canada and Québec in April 2013 - See more at: http://www.fciq.ca/Nouvelles_economiques/Mise_en_chantier_EN.html#sthash.oHktzQO6.dpuf

Housing Starts Continued to Fall in Canada and Québec in April 2013

In Québec, after registering decreases of 24 per cent in February and 20 per cent in March, the number of housing starts fell by 40 per cent in April, with a total of 3,179 new constructions.

The chart below provides an overview of housing starts in April 2013 in Canada, Québec and the province’s six Census Metropolitan Areas.

- See more at: http://www.fciq.ca/Nouvelles_economiques/Mise_en_chantier_EN.html#sthash.oHktzQO6.dpuf

Housing Starts Continued to Fall in Canada and Québec in April 2013

In Québec, after registering decreases of 24 per cent in February and 20 per cent in March, the number of housing starts fell by 40 per cent in April, with a total of 3,179 new constructions.

The chart below provides an overview of housing starts in April 2013 in Canada, Québec and the province’s six Census Metropolitan Areas.

- See more at: http://www.fciq.ca/Nouvelles_economiques/Mise_en_chantier_EN.html#sthash.oHktzQO6.dpuf

Sunday, May 26, 2013

Sunset - Hudson Yacht Club

Sunset

Hudson Yacht Club

Quebec, Canada

May 25, 2013

Saturday, May 18, 2013

Canadians Interested in Recreational Property Feel Added Urgency to Leap While Rates Are Low

May 16, 2013

http://www-c.royallepage.ca/news/canadians-interested-in-recreational-property-feel-added-urgency-to-leap-while-rates-are-low/

Consumers maintain optimism regarding Canadian recreational property market, according to Royal LePage survey
TORONTO, MAY 16 - According to a new survey released today by Royal LePage, interest rates factor hugely into the decisions of Canadian households when it comes to purchasing a recreational property.
The survey, which polled Canadians across the country who either currently own or intend to purchase a recreational property within the next five years, found that most (82 per cent) Canadians say interest rates will influence their decision to purchase a recreational property – and a majority (58 per cent) feel added urgency to buy a recreational property while interest rates are low.
Survey respondents demonstrated overall optimism regarding the Canadian recreational property market. When asked what they believe recreational property prices will do in the coming year, half (50 per cent) of respondents indicated that prices will increase and one-third (32 per cent) said they will stay the same. And of those planning to purchase a recreational property within the next five years, 76 per cent said they are more inclined to buy a property in Canada than in the U.S. or elsewhere.
“Despite financial and economic uncertainty, or perhaps because of it, we have found that the enduring value of recreational properties is widely-recognized by Canadians,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “In contrast to our large urban centres, where home prices shot up in recent years before rapidly cooling in 2013, the recreational property market has remained remarkably stable and resilient.”
Soper continued, “I shy away from recommending real estate as an investment for the typical family. Shelter is, after all, primarily consumption. However in Canada today, where we see virtually no return on bonds and other forms of modest risk savings, it is reasonable to view recreational property in a new light. This prolonged low-interest environment supports purchase decisions based upon lifestyle and supported with a sound investment thesis.”
According to the survey, the majority of current recreational property owners plan to keep their properties long-term, with 60 per cent stating that they are somewhat or very unlikely to sell their property upon retirement. At the same time, almost two-thirds (64 per cent) are not planning to use their recreational home as their primary residence upon retirement. For those planning to purchase a recreational property for retirement, financial feasibility is among the most important factors they are looking for, with affordable purchase price (56 per cent) and reasonable maintenance costs (39 per cent) topping the list. Waterfront access (37 per cent), proximity to town (33 per cent) accessible medical facilities (26 per cent) and proximity to their primary residence (22 per cent) were also cited as important property attributes.
Properties on a lake are by far the leading property type, with almost half (41 per cent) of those planning to buy indicating that this is their first choice, followed by a property in the mountains or woods (17 per cent) and a condominium in a recreational community (13 per cent). When asked what financial and/or lifestyle changes they would be willing make in order to purchase their dream recreational property, almost one-third (31 per cent) said they would rent their property out during the year. Other strategies include reduce discretionary spending (25 percent), downsize primary residence (24 per cent), purchase a fixer-upper (23 per cent) and purchase with friends/family (22 per cent).
“Canadians have long valued the ability to escape the city to spend time with friends and family,” said Soper. “A place to get away from the pressures of daily life seems to be more attractive now than ever. From coast to coast, Canada offers some of the world’s most spectacular landscapes and friendly communities.”
The survey was commissioned as part of the 2013 Royal LePage Recreational Property Report, an annual market analysis of recreational property prices, trends and activity in selected leisure markets across the country.

http://www-c.royallepage.ca/news/canadians-interested-in-recreational-property-feel-added-urgency-to-leap-while-rates-are-low/

Sunday, May 5, 2013

Unrealistic Demands

Unrealistic demands

Gazette analysis shows which Montreal areas are best and worst at pricing homes to sell

Pierre was enamoured for more than a year with the Westmount mansion’s high ceilings, marble bathrooms and river views, but the owner’s multimillion-dollar, supposedly non-negotiable asking price was just too high.
But when real estate sales slowed in late 2012 and some Westmount buyers and sellers became jittery following the election of the Parti Québécois government, Pierre, who spoke on condition that his real name not be printed, said he was finally able to buy the mansion — for $1 million below the asking price.
While a seven-figure discount is far from typical, buyers, brokers and evaluators cite examples of luxurious Westmount homes selling for up to 40 per cent below asking price at a time when the inventory of Montreal homes for sale is hitting the highest point in more than a decade.
One Westmount mansion initially listed for $4.5 million traded hands a year later in 2012 at $2.8 million.
“My general impression is that there is a huge disconnect between the listing of these homes and the reality of the market,” said Pierre, an affluent businessman.
“People keep lowering their asking prices.”
Unrealistic pricing, following years of appreciating property values, is joining fears over high household debt and tougher rules on insured mortgages as explanations for weakening Montreal Island home sales, which dropped 22 per cent during the first quarter of 2013, year over year, real estate board data show.
To test whether sellers are overestimating the value of their properties, The Gazette analyzed real estate board data for average asking and selling prices, based on about 66,000 sales of Montreal Island plexes, condos and single-family homes since 2008. The analysis suggests the gap between what owners want for their homes and the actual selling prices for their properties widens as market conditions weaken, like during the economic downturn of 2008 and 2009.
Homeowners who sold their properties on Montreal Island during the last three months of 2012 received just under 94 per cent of the average asking price — down slightly from the same quarter in 2011.
“There are many factors that explain this (the market slowdown), but the overvaluation of home prices could be a part of it,” said François Des Rosiers, a professor in the department of finance, insurance and real estate at Université Laval. “It’s very complicated.”
Indeed, while Greater Montreal property values are still expected to rise slightly in 2013, Royal LePage Real Estate Services recently predicted home prices could decline by up to five per cent this spring as sellers realize they will have to “negotiate” with buyers to sell their homes. Between 2002 and 2012, the price of a Greater Montreal home rose 103 per cent, according to the Teranet Index on House Prices.
Are Montreal sellers simply being too greedy at a time when buyers have the advantage?
“Right now, the sellers aren’t reducing their prices,” Des Rosiers said. “It could happen if the slowdown gets worse, but I’m not one who expects to see a huge drop in prices on the island of Montreal.”

The Gazette looked at the average amount owners wanted for homes sold by brokers, compared to the average sale prices for those properties, in neighbourhoods across the city. From these figures, a ratio of asking-to-selling price was calculated. The higher the ratio, the better the sellers were at getting the amount they wanted for their homes; for example, a 100-per-cent ratio meant buyers paid the full asking price for a property.
Among The Gazette’s findings:
Westmount — where single family homes sold for $163,000 below the average listing price of $1.5 million — was the area with the widest gap between what sellers wanted and what they actually got for their properties, partly because of the difficulty of finding comparable prices for the unique and expensive houses. The ratio was 90.6 per cent.
For condos, Côte St. Luc sellers fell $30,600 short from getting their average $335,453 asking price, in what was the widest gap on Montreal Island in that category. The ratio was 91.8 per cent.
With a ratio of 96.6 per cent ratio, condo sellers in the Villeray/Saint-Michel/Parc-Extension borough were the best in their housing category at getting their asking prices.
Condo sellers priced their homes more realistically for the market, on average, than owners of plexes or single-family homes, most likely because it’s easier to find prior sales of these apartments as a basis for comparison, experts say.