Stable outlook for Canada's housing market in 2012 - Chuck Surette

House prices and sales will remain stable through 2012, according to the latest forecast by the Canada Mortgage and Housing Corporation (CMHC).

In its fourth quarter outlook, CMHC predicts the average price will increase 1.2% from $363,900 in 2011 to $368,200 in 2012. Sales will rise from 450,100 units in 2011 to 458,500 in 2012, up 1.9%. Housing starts, however, will drop 2.2% from 191,000 in 2011 to 186,750 in 2012, according to the CMHC outlook.

Global economic concerns have resulted in growing fears about how that might impact Canada’s market, but CMHC Deputy Chief Economist Mathieu Laberge said the country’s real estate market will remain strong.

“Despite continued uncertainty in the global economy, Canada’s economic fundamentals remain positive, particularly with respect to interest rates, employment and immigration,” said Laberge. “These factors will continue to support Canada’s housing sector in 2012.”

In Vancouver and Abbotsford, where average-price growth has topped any other Canadian city, the average will gain 3.2% in 2012, on top of 5.3% gains forecasted for this year. 

Unemployment there will drop from 7.9% to 7.5%, said the CMHC report. Sales activity, however, will start to tail off from the 7.3% growth in 2011 to 3.3% growth in 2012.

The market will likely continue to attract builders, with housing starts expected to rise 9.4% in 2012 and building on 5.1% gains in 2011 over 2010.

In the Greater Toronto Area, apartment starts are expected to be 37.5% higher in 2011 over 2010, totalling 18,200 stats in 2011. Those numbers won’t slow in 2012, as apartment units will gain another 1.6% to reach 18,500 in 2012.

Overall housing starts will drop 2.3% in Toronto, CMHC predicts, largely based on a 14.1% drop in single-detached starts, from 8,500 in 2011 to 7,300 in 2012.

Toronto price gains will also slow, from 4.3% gains in 2011 to 1.4% gains in 2012 to an average of $457,500.

source:canadianrealestatemagazine.ca

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Nuthin says lovin' like Utility Turkey in the Oven....

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CREA Updates Resale Housing Forecast - Chuck Surette

OTTAWA – November 15, 2011 – The Canadian Real Estate Association (CREA) has made a small revision to its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations for 2011 and 2012.

Activity came in broadly in line with expectations across much of the country in the third quarter of 2011 with the exception of Ontario. Sales there came in stronger than anticipated in a number of regions over the summer, but were held aloft mostly by Toronto activity as the third quarter ended.

Stronger than anticipated sales in Ontario pushed up national activity in the third quarter, and prompted CREA to raise its annual sales forecast for 2011 from 0.9 per cent to a revised 1.4 per cent.

“The continuing strength of home sales activity in the face of ongoing financial market volatility speaks volumes about the confidence of Canadians in our housing market, said Gary Morse, CREA’s President. “Interest rates look like they’ll remain low at levels that are friendly to the housing market for some time to come, and that’s good news for Canadian home sales activity and the overall economy.”

CREA forecasts that national sales activity in 2012 will ease by 0.5 per cent to 451,200 units. This represents a small upward revision CREA’s previous 2012 sales forecast, and reflects expectations that Canadian interest rates will remain low until well into next year. Forecast sales for 2011 and 2012 remain roughly on par with the annual average for activity over the past ten years.

The national average price has evolved as CREA expected, with average home prices in Vancouver moderating compared to levels in the first half of the year. Vancouver sales of multi-million dollar properties have returned to more normal levels after having shattered a number of monthly records this spring.

CREA’s national average home price forecast for 2011 is little changed at $362,700, representing an annual increase of 7.0 per cent. In 2012, the national average price is forecast to hold even with the 2011.

“A number of factors will keep Canada’s housing market in check as interest rates remain low,” said Gregory Klump, CREA’s Chief Economist. “These include tightened mortgage regulations, high household debt levels, together with slower economic and job growth. That said, with global economic growth expected to remain fragile but positive, employment levels and income growth in Canada should remain supportive for the housing market.”

“Headline news about economic uncertainty has put only minor dents in consumer confidence. How confidence evolves depends on how global turmoil plays out over the coming months. Should global economic headwinds weigh more heavily than expected on Canadian economic prospects, the federal government and the Bank of Canada have made it clear they stand ready to take flexible and measured responses as appropriate. That’s encouraging from the standpoint of the Canadian economic and housing market prospects.” 

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Chuck Surette

Sales Representative

Coldwell Banker at Success Realty, Brokerage

Office-519-633-5570

Cell-519-777-4727

http://www.chucksurette.ca

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Santa Claus Parade Chuck Surette

Here's a picture of our float for the St. Thomas Santa Claus Parade. It was a blast! We saw lots of friends and gave away over 12 pounds of candy!
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Chuck Surette
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Canadian home sales edge higher in October

OTTAWA – November 15, 2011 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity picked up a little further in October 2011 following the uptick in September.

Highlights:

• Sales activity rose in October, marking the highest level since January.
• Actual (not seasonally adjusted) national sales activity in October stayed in line with the 10-year average for the month, as it has most months this year.
• Year-to-date sales are also even with the 10-year average.
• The number of newly listed homes remained little changed from levels in the previous three months.
• While the combination of stronger sales and stable new listings resulted in a slightly tighter balance of supply and demand, the national housing market remains firmly rooted in balanced territory.
• The national average price posted a 5.5 per cent year-over-year gain in October, the smallest increase since January.

Homes sold through MLS® Systems of real estate Boards and Associations in Canada rose 1.2 per cent in October 2011 from the previous month. While national sales activity levels are still best described as average, the monthly rise in October sales built on the 2.5 per cent gain in September, and lifted activity to the highest level since January.

Just over half of all local markets posted monthly sales increases, led by gains in Montreal, Toronto, and Vancouver.

“There was no shortage of headline news in October about global financial market volatility and economic uncertainty, but it doesn’t appear to have dampened homebuyers’ spirits,” said Gary Morse, CREA’s President. “Interest rates are at low levels and are likely to stay that way for some time to come. Homebuyers clearly see the opportunities that the current interest rate environment presents. That said, all real estate is local, so buyers and sellers should consult their local REALTOR® for an understanding of opportunities in their housing market.”

As has been the case in most months this year, actual (not seasonally adjusted) national home sales in October stayed in line with the 10-year average for the month. Although up 8.5 per cent from levels one year ago, the gain in large part reflects last year’s nascent pick-up in activity following a mid-year lull.

A total of 397,561 homes have traded hands via Canadian MLS® Systems so far this year. This represents an increase of 1.8 per cent from levels in the first 10 months of 2010, but is directly in line with the 10-year average for the year-to-date figure.

The number of newly listed homes remained little changed in October compared with levels recorded in each of the previous three months.

“The prevailing economic outlook for Canada is one of slower but still positive economic growth, with heightened caution about investment and hiring decisions,” said Gregory Klump, CREA’s Chief Economist. “Consumer confidence and the housing sector are being supported by low interest rates and high employment levels, but their prospects depend on how Canada’s economic outlook evolves in response to global economic risks and outcomes in the months ahead.

Home sales activity over the past couple of months suggests buyers are confident that the Canadian economy will remain relatively unscathed by global economic risks, since every home purchase is a homebuyer’s vote of confidence in the future. That confidence is no doubt rooted in the success of coordinated fiscal and monetary policy responses that helped quickly pull Canada out of the last recession, and a stated willingness and ability to carry out further policy actions if need be.”

While the combination of stable new listings and stronger sales made for a slightly tighter balance between supply and demand in October, the national housing market remains firmly rooted in balanced territory. The national sales-to-new listings ratio, a measure of market balance, stood at 53.4 per cent in October, up from 52.8 per cent in September.

Based on a sales-to-new listings ratio from 40 to 60 percent, about 60 per cent of local markets in Canada were in balanced market territory in October. Of the remaining markets, there was a handful more seller’s markets than buyers’ markets.

The number of months of inventory stood at six months at the end of October on a national basis, little changed from the end of September (6.1 months). It has remained stable at about six months since April. The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance between housing supply and demand.

The actual (not seasonally adjusted) national average price for homes sold in October 2011 stood at $362,899. This is up 5.5 per cent from October 2010, making it the smallest increase since January.

I'm Here to Help,

Chuck Surette

Sales Representative

Coldwell Banker at Success Realty, Brokerage

Office-519-633-5570

Cell-519-777-4727

http://www.chucksurette.ca

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Ten offers to buy empty St. Thomas Ford plant

Ten offers to buy empty St. Thomas Ford plant

Company to compile short list

By QMI AGENCY

Updated 6 days ago

More than 10 offers have flooded in to buy Ford's empty St. Thomas Assembly Plant, some of which offer "economic opportunity" for the region, says the commercial realtor handling the file.

The Big Three automaker will now compile a shortlist of possible buyers for the massive factory, which shut down in September after a 44-year, eight-million vehicle run.

Ensuring that any buyer improves the local economy is top of mind for Ford, said realtor Peter Whatmore, vice-president of C.B. Richard Ellis.

"We are delighted with how it went (with the listing) — there was a tremendous response," he said. "Several of them are probably very good for the local economy and the greater region, although it will take time."

Ford would like to see an operating business on the site, to erase the memory of the plant's closing, said another observer.

"Ford wants to see something there that will run well, so it does not look like it ruined the region," said Dennis Broome, president of the St. Thomas Economic Development Corp. board.

"This is about jobs," he said. "If we can save any, it helps London, St. Thomas and the region."

More than 1,000 jobs were lost when the sedan plant, best known for the Crown Victorias it built, was closed.

Ford will compile a short list in about 30 days of the preferred offers on the site and talks will begin in earnest after that, with no timeline for completion of a sale.

"We have had submissions from all over North America," said Whatmore. "Some of them are going to create jobs — we are optimistic Ford will ultimately come to terms with the best economic package for the region."

C.B. Richard Ellis has conducted 25 plant tours, some with local businesspeople, but Whatmore declined to comment if there are any local offers on the table.

"Worst-case scenario for our client would be razing the site. There are substantially better options on the table," he said.

The prospective sale is good news for Southwold township, where the factory is, since it has lost substantial tax revenue from the closing and hopes to get some back with a new owner.

"That is excellent," said Suzanna Dieleman, the township treasurer.

"It is important in a number of ways. It would provide employment for our residents, and it would be an excellent boost for the morale of the community.

"If it was occupied and used for commercial or industrial business, that would be good for the community as a whole."

This year Ford will pay about $200,000 in taxes on the site, about half what it paid when the plant operated.

Township residents have been hit with a 7.5% tax hike this year and may be looking at another 7% next year.

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Chuck Surette

Sales Representative

Coldwell Banker at Success Realty, Brokerage

Office-519-633-5570

Cell-519-777-4727

http://www.chucksurette.ca

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Roof vents?

We were inspecting a mobile home yesterday and came upon this...Looks like some of my late Father in-laws handiwork. Home made roof vents. It looks like he did a nice job!
Chuck Surette
Sales Representative
Coldwell Banker at Success Realty

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125 Hagerman is FIRM!

125 Hagerman is a firm deal (sold!). Congrats to my clients Justin and Jen. Special thanks to Peter. Thanks so much for the referral of your family member. I appreciate the opportunity to assist you both. It has truly been a pleasure. I'm here to help,
Chuck Surette
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Coldwell Banker at Success Realty
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Chrismas Cheer

Means Beer! 2 new brews on tap for Christmas season. Amber all grain + Brown with demurra sugar + home grown hops. Come by for some Yule tide cheer!

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Yoga Cat

Tito is a strange cat...
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