Durham Region Real Estate Information

The Canadian Real Estate Association has announced their latest, new FREE App for the Blackberry. The new app will use the GPS technology inside of the BlackBerry to pinpoint the user’s location and help them browse Toronto and Durham Region real estate MLS listings.

A similar app that was announced this year for the iPhone has already been downloaded over 100,000 times. I've used it and it is awesome!

“Consumers today use their smartphones in many ways, and this free application provides Blackberry users all the features and functionality of the Realtor.ca website. Realtors across Canada are proud to be providing this service to house hunters,” said Canadian Real Estate Association president Gary Morse in a press release.

Using the app, Durham Region home buyers can:

• See properties near your current location
• View new listings nearby
• View Open Houses and make a list
• Contact your Realtor
• Make a list of favourite properties

An Android CREA app will be available this summer.

The CREA Realtor.ca App is available through the ITunes App Store for the iPhone and iPad as well as through BlackBerry App World for the BlackBerry. Just search “Realtor.ca”in the App Store.

The Canadian Real Estate Association (CREA) has revised its 2011 forecast for home sales activity via the Multiple Listing Service^® (MLS^®) Systems of Canadian real estate Boards and Associations, and extended it to 2012.

Sales in the second half of 2010 rebounded faster than CREA had previously expected. “The hand-off going into 2011, together with the highs and lows for sales activity posted in 2010, provided guidance for CREA’s revised forecast,” said Gregory Klump, CREA Chief Economist.

“Home buyers recognize that low mortgage interest rates represent a once in a lifetime opportunity. At the same time, they expect that rates will rise, so they’re doing their homework in order to understand what it could mean in terms of higher mortgage payments down the road before they make an offer,” said Georges Pahud, CREA President.

The upward revision to CREA’s forecast for 2011 reflects recent improvements in the consensus economic outlook and a further expected improvement in consumer confidence.

“Recent additional changes to mortgage regulations will further ensure that buyers don’t buy more home than they can afford when interest rates inevitably rise,” said Klump.

CREA expects that home sales activity will gain traction after dipping in the second quarter as the economic recovery and job growth continue, incomes grow, and consumer confidence further improves. “Even though mortgage interest rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity. Strengthening economic fundamentals will keep the housing market in balance, which will keep home prices stable,” said Klump.

The national average home price is forecast to rise 1.3 per cent in 2011 and 2012, to $343,300 and $347,900 respectively. Average price is expected to rise modestly in most provinces, reflecting the continuation of a healthy balance between supply of, and demand for, homes listed for sale.

Greater Toronto REALTORS® reported 9,041 existing home sales through the TorontoMLS® system in April 2011. This result was down 17 per cent compared April 2010 when sales spiked to a new record of 10,898. While off last year's record result, April 2011 sales were in line with the average April sales level reported over the previous five years. Last year spiked as people rushed to beat the HST tax hike.

"Existing home sales have been strong from a historic perspective through the first four months of 2011. Expect the pace of sales to remain robust through the spring, as the economy expands and home buyers continue to benefit from affordable home ownership opportunities," said Toronto Real Estate Board (TREB) President Bill Johnston.

Market conditions tightened markedly over the last year. April 2011 sales accounted for 62 per cent of new listings during the month – up substantially from 53 per cent in April 2010. Tighter conditions resulted in the average April selling price growing by nine per cent annually to $477,407.

"The number of listings has been below expectations so far this year. Increased competition between home buyers has led to an accelerating annual rate of price growth," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The strong price growth experienced in April should result in more listings and more balanced market conditions."

Median Price
In April, the median price was $402,000, from the $373,000 recorded during April of 2010.

Personal Comment from street level...

Many homes are selling quickly and they tend to be the ones that are priced right from the get-go. Even with tighter inventory conditions, Buyers are not willing to overpay for a property. They seem content to wait until the right home, at the right price comes along.

RE/MAX CEO, Margaret Kelly, discusses how RE/MAX agents are successfully helping more home buying and selling consumers. Sales statistics show that for 13 consecutive years RE/MAX agents have out- performed the competition, and are working hard to better serve their clients. Nobody in the world sells more real estate than RE/MAX.

In Durham Region that market share is close to 40% and almost 3 times as much as the next, closest company. In the Toronto market that share is a whopping 30% of all real estate sold. I've been selling real estate for 14 years now and with RE/MAX for the past three. I can say from personal experience I see RE/MAX agents handling more transactions than at any other company I've worked for. They're just busier!

Here's a message from our CEO with statistics I found interesting. Enjoy.

http://www.youtube.com/watch?v=sp8p3sWUK7M&feature=relmfu

Second Best March on Record

Greater Toronto REALTORS® reported 9,262 transactions through the TorontoMLS® system in March 2011, representing the second best March result on record. The number of transactions was 11 per cent lower than the record result reported in March 2010.

"The strong home sales reported in March and throughout the first quarter of 2011 have been based on a solid affordability picture and improving economic conditions in the GTA and country-wide," said Toronto Real Estate Board (TREB) President Bill Johnston.

The average selling price for March 2011 was up five per cent year-over-year to $456,147. The strongest average annual price growth was reported for condominium apartments and semi-detached houses, at approximately seven per cent for both home types.

"Market conditions were tighterin March compared to last year. With more competition between buyers, we have seen a strong but sustainable rate of price growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.

My local perspective in Durham Region:

2010 was an exceptional Spring market, driven by the prospect of the incoming HST tax in July. Even though this tax did not apply to re-sale homes, it did apply to legal fees and real estate commissions.

We have been involved with numerous multiple offers in the early Spring market of 2011. While interest rates remain low the affordability factor has been sustained, especially for first time home buyers.

Well maintained or upgraded homes are always in demand however it's important to note; excess in supply can occur in specific price ranges in any locality.

When looking for a home it's important for the buyer to know what the inventory situation is for the price range and area they are looking in, as this factor can affect how much a buyer is willing to pay for a home.

There has been a lot of confusion over the application of the HST to the Ontario housing market. Here is a short video that will help clear up any mis-conceptions.

http://www.youtube.com/watch?v=01AtS_8e0I0&feature=player_profilepage

My colleague at Royal Bank, Andrew Brown just sent this over. Its a factual accounting of the changes announced today.

Ottawa, January 17, 2011

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The New Measures:

• Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.

• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.

• Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

 Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

Bob Aaron recently reported in a Toronto Star article that a landmark consumer protection initiative proposed by the Tarion Warranty Corp., would require that Builder Purchase Agreements set out in one place all the extras that can be added to the price of a new home.

Anyone who has purchased a new home in the past understands the frustration of all the hidden costs that aren't set forth up front, resulting in "sticker shock" for the purchaser or worse yet, an inability to raise the necessary funds.

Read more of this article here.

GTA REALTORS® Report Monthly Resale Housing Market Figures