Wednesday, December 19, 2012

Canadian Real Estate Association Market Update

The following is an update on the overall Canadian real estate market just released by the Canadian Real Estate Association (CREA).  Activity in the Georgian Triangle reflects the same general conditions as what is being experienced elsewhere across the country.

Ottawa, ON, December 17, 2012 - According to statistics released today by The Canadian Real Estate Association (CREA), national home sales activity edged back down in November 2012 on a month-over-month basis, returning to where it stood in August. Demand geared down in August in the wake of tighter mortgage lending rules, and has since been running about eight per cent below levels in the first half of the year.


• Home sales down 1.7% from October to November.

• Actual (not seasonally adjusted) activity down 11.9% from November 2011.

• Number of newly listed homes down 0.9% from October to November.

• Housing market remains firmly in balanced territory.

• National average price for home sales down 0.8% on a year-over-year basis in November.

• MLS® HPI up 3.5% in November, marking its smallest gain since May 2011.

The number of home sales processed through the MLS® Systems of real estate Boards and Associations in Canada edged down 1.7 per cent on a month-over-month basis in November 2012. The decline returned activity to where it stood in August following the most recent tightening of mortgage regulations.

Updated CREA Forecast

OTTAWA –December 17, 2012The Canadian Real Estate Association (CREA) has updated its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations in 2012 and 2013.

When CREA’s resale housing forecast was published in September, activity showed the first signs of slowing in the wake of new mortgage lending regulations. Demand has remained at lower levels, and this trend is expected to persist through the end of the year. Lower than projected third quarter sales have downgraded the prospects for activity this year in almost every province.

Tuesday, December 18, 2012

Ultimate Garage #1

  As we see more and more luxury homes being built in the southern Georgian Bay region, with them comes a plethora of high tech features and toys including state-of-the-art security systems, elaborate kitchens, baths, home theatres and other luxury amenities that few of us will ever own.

 As an avid car guy, I am always interested in garages no matter what scope or size they may be and while I have yet to see a real automotive masterpiece in terms of garage space in this area, I am sure they are out there or soon will be. 

  In January, the annual  Barrett Jackson car auction from Scottsdale Arizona will be taking place and it's a must watch for any car enthusiast.  Click on the link below to see the garage Barrett Jackson Chairman and CEO Craig Jackson has built to house his personal collection of  automobiles.

Friday, December 14, 2012

November Real Estate Sales Down19%

The real estate roller coaster ride of recent months continued in the month of November as overall sales took a steep dive after posting a substantial gain the prior month.
  MLS® unit sales reported through the Georgian Triangle Association of REALTORS® (GTAR) dropped 19% in November with 135 properties sold compared to 167 in the same month one year ago, Dollar volume declined by 17% totaling $39.6 million versus $47.5 million in November 2011. These results are consistent with other areas of the country as Canada’s overall housing market slows partly due to the season but also stemming from a weaker demand and tightened mortgage rules.

  Despite the up and downs of recent months as shown in the accompanying graphs, area real estate sales for the year are running 7% ahead of 2011 both in terms of units sold and dollar volume. A total of 1,871 properties have sold through the GTAR MLS® system this year compared to 1,753 in 2011. At the end of November last year, year-to-date sales in units were down 3% while total dollar volume was unchanged from 2010. Given these statistics from one year ago, a 7% represents a much improved market despite the inconsistency in activity from one month to the next.
  Through most of 2012, the upper end of the market has remained somewhat soft. Residential sales over $1.5 million are running about 57% to 2011 with just 4 MLS® sales reported year-to-date. Sales between $1 to $1.5 million total 22 properties, the same number as last year. As of this posting there are 92 residential listings of properties for sale over $1 million, given the current rate of sales that represents 40 months (3.3 years) worth of available inventory in this price range. Where we have seen a significant increase in sales is in the $500,000 to $600,000 price range which is up 36% with 82 sales this year compared to 60 in 2011. The $800,000 to $900,000 category has also seen a significant increase with 13 sales this year versus 8 in 2011, an increase of 62%.

  Overall, the number of new MLS® listings year-to-date are up just 1% which when compared to the 7% sales increase shows that the market is moving to a more balanced ratio of listings to sales. Nonetheless, there are still 3.3 properties listed for every 1 property sold so buyers for the most part have plenty of choices.

Monday, December 10, 2012

Unnecessary Political Propoganda

  As difficult it is to do at times, I have in recent months tried to refrain from making politically charged comments but sometimes the urge simply cannot be suppressed!

 Recently when retrieving my mail from the post box I noticed the envelope with last month's hydro bill from Collus/Powerstream was thicker than usual.  Upon opening the envelope I like you, found a four page colour brochure extolling the virtues of the new recreational facilities the Town has committed to at a cost of about $12 million.
  Whether it proves to be a good decision or a bad one, the fact is the decision has been made so why this mailing was deemed necessary is beyond me.  Further, the Mayor in attempting to answer the plans critics was quoted in the Collingwood Connection a few weeks back as saying "Council has moved on." Then so be it, move on.  A four page colour brochure amongst other things touting the "Sprung" structures as a "Green Choice" seems rather contrary to being a green initiative given the paper and printing materials consumed in this pointless self congratulatory correspondence.

  While I appreciate all the hard work of our Town staff, I fail to see why our Mayor needs to keep reiterating as she did in the brochure that staff spent "45 days" developing this plan.  In my opinion, this was a slap in the face to the community volunteers that spent months of their own time developing the Central Park plan that was put forth and subsequently ignored.  To spend in excess of $12 million on recreational facilities that ultimately may not answer the community's longer term needs after a mere 45 day investigative process is nothing to be patting yourself on the back over.

  The only clear winner in all this so far is Sprung.  They have acquired a multi-million dollar contract and now have a nice four page full colour brochure attesting to how great they are.  I hope perhaps they at least paid for some if not all of it.

 What are your thoughts?

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