For the complete news release, including detailed statistics, follow this link: www.bcrea.bc.ca/news_room/2009-12.pdf. For immediate release December Home Sales Second Highest on Record
2009 – In Like a Lamb, Out Like a Lion Vancouver, BC – January 12, 2010. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 132 per cent to 5,703 units in December compared to the same month last year. More homes were sold last month than in any December on record except 1989 when 6,014 units were sold. “2009 came in like a lamb and went out like a lion,” said Cameron Muir, BCREA Chief Economist. “The year began with home sales trending at a 25-year low and ended at a 20-year high. Low mortgage interest rates, pent-up demand and improving economic conditions were key drivers of consumer demand." A total of 85,028 residential units were sold through the MLS® in 2009, up 23 per cent from 68,923 units in 2008. The residential sales dollar volume increased 26 per cent to $39.6 billion last year, while the average MLS® residential price increased 2 per cent to $465,725. "Considerable momentum in the housing market is expected to carry through the first quarter of 2010, before home sales begin to moderate as a result of eroding affordability and less pent-up demand,” added Muir.
For immediate release November Home Sales Continue at Torrid Pace Vancouver, BC – December 9, 2009. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 165 per cent to 7,182 units in November compared to the same month last year. Last month posted the highest number of MLS® residential sales for the month of November since 2005, when 7,721 units changed hands. Triple-digit gains in province-wide unit sales reflect a low number of unit sales in November 2008. “BC home sales remained at an elevated level in November,” said Cameron Muir, BCREA Chief Economist. “Low mortgage interest rates, pent-up demand and strong consumer confidence continue to be key drivers in the market." The torrid pace of home sales in the Fraser Valley, Vancouver and Victoria has propelled the provincial total to near record levels. However, consumer demand in these markets is expected to moderate in the new year as pent-up demand is largely expended and higher home prices erode affordability. Year-to-date, MLS® residential sales dollar volume increased 21 per cent to $36.8 billion over the same period last year. A total of 79,325 units were sold in the first eleven months of 2009, up 19 per cent from 2008, while the average MLS® price increased 2 per cent to $463,555. October Home Sales Highest in Six Years Vancouver, BC – November 17, 2009. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 115 per cent to 8,624 units in October compared to the same month last year. Last month posted the highest number of MLS® residential sales for the month of October since 2003, when 8,682 units changed hands. The average MLS® residential sales price in the province climbed 17 per cent to $493,328 from $420,259 in October 2008. “BC homes sales continued on an upward trend in October,” said Cameron Muir, BCREA Chief Economist. “Despite a lackluster economy, low mortgage interest rates have induced many potential buyers into the market. However, the recent phenomenal pace of home sales is expected to moderate in the coming months as pent-up demand dissipates and eroding affordability begins to impact the purchasing power of households.” Year-to-date, MLS® residential sales dollar volume increased 14 per cent to $33.3 billion over the same period last year. A total of 72,146 units were sold in the first ten months of 2009, up 13 per cent from 2008, while the average MLS® price was up 1 per cent to $461,694. For immediate release Market Strength Extends Through 2010
BCREA Fall 2009 Housing Forecast Vancouver, BC – November 13, 2009. The British Columbia Real Estate Association (BCREA) released its Fall 2009 Housing Forecast today. BC Multiple Listing Service® (MLS®) residential sales are estimated to increase 20 per cent to 82,900 units this year from 68,923 units in 2008. Residential sales in 2010 are forecast to increase a further 8 per cent to 89,600 units. The ten-year average is 82,800 units. "A sharp rebound in consumer demand turned a potentially dismal year into a very strong year for home sales,” said Cameron Muir, BCREA Chief Economist. “Vancouver and Victoria, in particular, are posting near record unit sales this fall." BC interior housing markets are also experiencing robust consumer demand as low mortgage rates and stronger market confidence drive home sales higher. The average annual MLS® residential price in the province is expected to post a new record this year, rising 2 per cent to $463,200 and is forecast to climb an additional 4 per cent to $482,800 in 2010. “Recovery in the BC economy will unfold gradually next year,” added Muir. “With sales prices in some markets flirting with record highs, affordability constraints will limit home price inflation over the next year.” For immediate release BC Housing Market Gains Momentum Vancouver, BC – October 15, 2009. TheBritish Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 68 per cent to 8,576 units in September compared to the same month last year. The average MLS® residential sales price in the province climbed 15 per cent to $474,169 from $412,149 in September 2008. "Upward momentum in consumer demand continued unabated in September,” said Cameron Muir, BCREA Chief Economist. “Low mortgage interest rates and renewed confidence in real estate assets has propelled BC home sales to a level not seen in two years.” September posted the highest number of BC MLS® residential sales for that month since September 2005, and the third highest ever recorded for the month of September. "While Victoria and the Lower mainland are exhibiting strong sellers’ market conditions with rising prices, housing markets in the rest of the province are experiencing a more gradual recovery,” added Muir. Year-to-date, MLS® residential sales dollar volume increased 6 per cent to $29 billion over the same period last year. A total of 63,521 units were sold in the first nine months of 2009, up 6 per cent from 2008, while the average MLS® price declined 1 per cent to $457,389. -30- For more information, please contact: Cameron Muir | Damian Stathonikos | Chief Economist | Director of Communications and Public Affairs | Direct: 604.742.2780 | Direct: 604.742.2793 | Mobile: 778.229.1884 | Mobile: 778.990.1320 | | |
How hot is too hot? The resurgence in Canada’s residential real estate market might be too much of a good thing for the Bank of Canada , Toronto-Dominion Bank economists say. The Reserve Bank of Australia surprised markets Tuesday by increasing interest rates, citing significant growth in housing credit and dwelling prices as part of the justification, TD economists Craig Alexander and Grant Bishop said in a research note. “The Bank of Canada could very well follow suit if Canadian real estate continues to heat up.” After a steep plunge in the second half of 2008, Canadian real estate markets have roared back. “The Bank of Canada’s unprecedented easing of monetary policy in response to the financial crisis set the stage for record-low mortgage rates, which, when combined with falling home prices, fuelled a sharp improvement in home affordability,” the TD report said. According to Canadian Real Estate Association statistics, the number of resale homes that changed hands in August rose 18.5 per cent year over year, and average prices were up 11.3 per cent year over year. “The key issue is whether the low interest rate environment is creating an economic imbalance that requires a rebalancing of monetary policy,” the TD economists wrote. If price pressures remain in check, no worries. But if the real estate market does not moderate a bit – “worse still, if price growth accelerates” – Canada’s central bank might be forced to raise interest rates sooner than later. Virginia Galt For the complete news release, including detailed statistics, follow this link: www.bcrea.bc.ca/news_room/2009-08.pdf. August Home Sales Continue at Brisk Pace Vancouver, BC – September 11, 2009. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 66 per cent to 8,565 units in August compared to the same month last year. The average MLS® residential sales price in the province climbed 12 per cent to $471,078 from $421,685 in August 2008. "Homes sales continued at a rapid pace in August,” said Cameron Muir, BCREA Chief Economist. “Attractive home prices and low mortgage rates were key drivers in the market." The number of active residential listings declined 20 per cent over the past year, with August posting 26 per cent fewer active listings than the peak in December 2008 (seasonally adjusted). “Home prices edged higher in many markets over the summer months as declining inventories created competition among homebuyers for the best properties." Year-to-date, MLS® residential sales dollar volume declined 2 per cent to $25 billion over the same period last year. A total of 54,945 units were sold in the first eight months of 2009, up 1 per cent from 2008, while the average MLS® price declined 2 per cent to $454,769. For more information, please contact: Cameron Muir | Damian Stathonikos | Chief Economist | Director of Communications and Public Affairs | Direct: 604.742.2780 | Direct: 604.742.2793 | Mobile: 778.229.1884 | Mobile: 778.990.1320 |
For the complete news release, including detailed statistics, follow this link: www.bcrea.bc.ca/news_room/2009-11.pdf.
House sales in Canada jump in JulyLast Updated: Friday, August 14, 2009 | 11:12 AM ET For the first time on record, sales of existing homes climbed to more than 50,000 units for July. (CBC) Canada's resale housing market for July posted the largest year-over-year gain in two years, with Western homebuyers leading the way, according to statistics released Friday by The Canadian Real Estate Association. For the first time on record, sales of existing homes climbed to more than 50,000 units for July. A total of 50,270 homes were sold last month via the Multiple Listing Service of Canadian real estate boards. This is up 18.2 per cent from the same month last year, and 3.9 per cent above the previous record for July that was set in 2007. "The difference in the resale housing market now, compared to the beginning of the year, is night and day, and nowhere is this more evident than in the West," association president Dale Ripplinger said in a release. "Homebuyers recognize that interest rates and prices have bottomed out, and are taking advantage of excellent affordability before prices and interest rates move higher." Resale numbers for July were up from the same month last year in about 60 per cent of local markets. The association said year-over-year gains in these cities contributed most to the national increase in activity: - Toronto (28 per cent).
- Vancouver (90 per cent).
- Montreal (19 per cent).
- Calgary (22 per cent).
- Edmonton (28 per cent).
Demand is rebounding sharply in some of Canada's priciest housing markets, skewing the national average price upward, with the average price rising 7.6 per cent from one year ago to $326,832.
For the complete news release, including detailed statistics, follow this link: www.bcrea.bc.ca/news_room/2009-07.pdf. For immediate release BC Housing Market Exhibits Balanced Conditions
Regional Differences Persist Vancouver, BC – August 14, 2009. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 53 per cent to 10,051 units in July 2009 compared to the same month last year. After six consecutive months of rising home sales and declining inventories, the province moved into balanced conditions in July, the first time since April 2008. "Record home sales in Metro Vancouver and Victoria propelled the province into balanced conditions last month,” said Cameron Muir, BCREA Chief Economist. “While conditions in many interior markets are getting much better, their reliance on the struggling resource sector and a recent spate of forest fires have contributed to a more gradual pace of improvement." Year-to-date, MLS® residential sales dollar volume declined 10 per cent to $21 billion over the same period last year. A total of 46,380 units were sold in the first seven months of 2009, down 6 per cent from 2008, while the average MLS® price declined 4 per cent to $451,758. For more information, please contact: Cameron Muir | Damian Stathonikos | Chief Economist | Director of Communications and Public Affairs | Direct: 604.742.2780 | Direct: 604.742.2793 | Mobile: 778.229.1884 | Mobile: 778.990.1320 | Email: cmuir@bcrea.bc.ca | Email: dstathonikos@bcrea.bc.ca |
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From Doug Panton, BMO Mortgage Specialist, on why you should buy a house today. Lets assume you needed $500,000 repayable over 35 years in 2007, 2008 and today in 2009.. In 2007 the 5 year fixed rate was 6.04% and the variable rate was prime (6.25) - 75 so 5.50%. The payments were $2,839 or $2,685 depending on your choice. In 2008 the 5 year fixed rate was 5.45% and the variable rate was prime (4.50) -.75 so 3.75% The payments were $2,649 or $2,139 depending on your choice. In 2009 the 5 year fixed is 3.65% and the variable rate is prime (2.25) + .60% so 2.85% The payments are $2,102 or $1,882 depending on your choice. The market was booming in 2007, in 2009 values have come down in some cases by 15%. So you might only need $425,000 in which case your payments are $1,787 or $1,600. In 2007 your mortgage was for $500,000 and your payments were $2,685 In 2009 your mortgage is $425,000 and your payments are $1,600.
Historical rates back to 2000. Prime 5 year fixed 2006 6.00% 5.89% 2005 4.25% 5.39% 2004 4.25% 6.15% 2003 4.75% 6.50% 2002 3.75% 7.30% 2001 6.75% 7.50% 2000 7.50% 8.35% Up until 2005 the bench mark for a great mortgage rate was 6%, from 1990 to 2005 is was 8%. From 1980 to 1990 it was 10% If you had a mortgage in the 80s you paid as much as 16% but did you know up until 1992 you never paid less then 9% From 1992 to 2002 you never paid less then 7% |