A recent article in the Globe and Mail imagines what would happen if Canada’s housing market doesn’t collapse, but instead, continues to rise.
To understand what that future would look like, the Globe says we should consider Australia, a country in which the average house costs 6.7 times what the gross annual median household income is. (In Canada, the average house costs 4.5 times the median.)
Not surprisingly, homeownership in Australia has become elusive to people outside the highest income brackets, particularly those living close to larger cities. Read more
The average price of a Canadian home was up by two and four per cent in the fourth quarter of 2012 compared with the same time last year, according to the latest Royal LePage report on Canadian real estate.
Compared to 2012, fewer homes are expected to trade hands in the first half of 2013, which should slow the pace at which home prices are rising, the report says. However, by the end of 2013, Royal LePage expects the average national home price to be one per cent higher compared to 2012. Read more
At times it seems like more housing statistics are released throughout the year than there are days on the calendar. But, since we’re at the end of 2012, we thought it pertinent to look back on the year that was in Canadian real estate and consider what the market has in store for us in 2013.
Follow along as we go through a number of notable housing statistics that were released over the last 12 months…
On the day it released its annual review of the state of housing in Canada, the Canada Mortgage and Housing Corporation has rolled out a new set of interactive data tables for 160 municipalities across the country.
CMHC’s tables and charts organizes various housing indicators and statistics – like housing starts, rents and rental vacancy rates, household type, and core housing need – for users to view quickly online. Read more
Are you itching to get your real estate information even faster? Well, we’ve got good news for you. Teranet has announced that the Teranet-National Bank House Price Index report will be released a week earlier.
Until now, the report has been released on the last Wednesday of each month.
This means that the index for August 2012, which previously would have appeared on September 26th, will be released on September 19th. Read more
Calgary is the most affordable housing market in Canada.
A new study by Genworth Canada and the Conference Board of Canada says first-time buyers, retirees and population growth will continue to fuel demand and price growth in condo markets in Canadian cities over the next few years.
The report looked at eight major metropolitan areas and noted that rising prices for single detached homes are encouraging first-time buyers to look at condos as an option, while retirees “remain heavy condominium consumers.” Further demographic support in the coming years will be provided by an aging population. Read more
A new Housing Trends and Affordability report from RBC says that, as a result of higher home prices and interest rates, housing affordability in Canada continued to erode across most markets in the second quarter of 2012.
The report wasn’t all negative though.
Thanks to a significant drop in prices for electricity and natural gas, Alberta has solidified its position as one of the most affordable housing markets in the country.
The ever-important 25-34 age group will continue to purchase houses with help from their well-off parents, thereby staving off a significant downturn in the Canadian housing market.
That’s how Benjamin Tal, deputy chief economist at CIBC World Markets, sees the market avoiding a steep decline in home prices.
His analysis runs contrary to the theory that population growth won’t be robust enough to sustain housing demand, leading to a price drop.
“This demographically driven fear is much ado about nothing,” Tal said on Thursday.
He went on to point out that although young people may have to put off purchasing a house because of student debt, their wealthy parents can lend a helping hand (read: some much needed cash).
“This is actually the first generation that the parents are better off than the kids and those parents will write a nice cheque,” Tal said in an interview. “The student debt level is not significant enough to really kill the housing market.” Read more
According to a report released by the Canadian Real Estate Association, the national resale market remained stable from June to July.
While prices have come off their peaks in Greater Toronto and Greater Vancouver, they are still higher than they were a year ago.
CREA’s president Wayne Moen said that “recent changes to mortgage regulations were widely expected to temper sales and prices in Greater Toronto and Greater Vancouver, and the data released today confirms that. Read more
The latest Teranet National Bank Composite House Price Index report indicates that home prices in the Canadian markets surveyed went up 5.4 per cent year-over-year in June.
“The June increase takes the index to a new high for the third month in a row. June was also the second consecutive month in which none of the 11 metropolitan markets surveyed showed a price decline from the month before,” the report stated.
Monthly changes tend to be greater in May and June, according to Teranet. The latest statistics bear out this tendency, showing monthly gains of 1.1 per cent and 1.2 per cent respectively. Read more