| The end of the Canada's real estate boom |
According to Eric Shackleton, a Canadian Press financial
analyst, in his article “ the end of the Canada's real estate
booming”, the Canadian housing market is ceased to be
sellers’ market, or the real estate boom is over. The author
states that housing markets in residential and recreational
sectors have ceased to be in the seller side; therefore, the
boom experienced over the past several years is ended. This
ended boom results that more properties are for sale in the
market comparing to previous years, and the demand of
buyers become more and more moderated. Moreover, the
average annual price gains across of the country in this year
have been slower than the gains in previous years which had
been usually accounted above 10 percent between 2002 and
2007. The such gains for the month of May in 2008 are only
1.1 per cent, down from 8.6 per cent of just four months
earlier. Eventually, new residential listings have risen
significantly, according to the MLS report. The article
forecasts that the growth of housing price will be about 2 per
cent for 2008, and 3.5 percent for the following years.
analyst, in his article “ the end of the Canada's real estate
booming”, the Canadian housing market is ceased to be
sellers’ market, or the real estate boom is over. The author
states that housing markets in residential and recreational
sectors have ceased to be in the seller side; therefore, the
boom experienced over the past several years is ended. This
ended boom results that more properties are for sale in the
market comparing to previous years, and the demand of
buyers become more and more moderated. Moreover, the
average annual price gains across of the country in this year
have been slower than the gains in previous years which had
been usually accounted above 10 percent between 2002 and
2007. The such gains for the month of May in 2008 are only
1.1 per cent, down from 8.6 per cent of just four months
earlier. Eventually, new residential listings have risen
significantly, according to the MLS report. The article
forecasts that the growth of housing price will be about 2 per
cent for 2008, and 3.5 percent for the following years.
Canada's housing boom is over: TD
Alia McMullen, Financial Post
Published: Thursday, June 26, 2008
TORONTO -- Canadian house prices have risen at the slowest pace
in seven years, with the end of the housing boom bringing the market
into balance following the robust growth of the past six years.
The Canadian Real Estate Association's Multiple Listing Service
figures for May show the national average house price rose by only
1.8% since May last year to $318,761. The increase is significantly
lower than the 11% price growth posted in 2007 and the run of 10%
price gains over the past six years.
Craig Alexander and Pascal Gauthier of TD Bank said in a quarterly
housing report that house prices should rise an average 2% across
Canada this year before ticking up to 3.5% in 2009.
"The long awaited end of the Canadian housing boom has occurred,
reflecting more moderate demand and increased supply of properties
for sale," they said.
TD said more people were listing their homes for sale to take
advantage of the rise in house prices, but sales and price growth were
softening because of weaker demand amid poor affordability.
MLS figures for May showed that residential listings rose a
seasonally adjusted 1.8% from April to 78,878 units. CREA said the
rise was driven by an unprecedented numbers of new listings in
British Columbia, Saskatchewan, Ontario and New Brunswick, which
more than offset a decline in newly listed properties in Alberta in the
month.
In contrast, seasonally adjusted sales activity fell by 1.2% over the
month to 38,133 units, with fewer transactions in British Columbia,
Saskatchewan and Alberta.
"A more balanced market means buyers are in a better negotiating
position," said Gregory Klump, chief economist at CREA said.
"Rising food, fuel and home prices are denting consumer confidence."
Mr. Klump said home buyers were becoming more cautious, likely
resulting in longer listing times and an increase in the importance of
realistic pricing.
TD said the changes between supply and demand would likely cause
housing affordability to improve over the next six to 12 months.
However, high prices in some markets, such as Toronto, would
continue to crimp overall affordability, it said.
Financial Post
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Alia McMullen, Financial Post
Published: Thursday, June 26, 2008
TORONTO -- Canadian house prices have risen at the slowest pace
in seven years, with the end of the housing boom bringing the market
into balance following the robust growth of the past six years.
The Canadian Real Estate Association's Multiple Listing Service
figures for May show the national average house price rose by only
1.8% since May last year to $318,761. The increase is significantly
lower than the 11% price growth posted in 2007 and the run of 10%
price gains over the past six years.
Craig Alexander and Pascal Gauthier of TD Bank said in a quarterly
housing report that house prices should rise an average 2% across
Canada this year before ticking up to 3.5% in 2009.
"The long awaited end of the Canadian housing boom has occurred,
reflecting more moderate demand and increased supply of properties
for sale," they said.
TD said more people were listing their homes for sale to take
advantage of the rise in house prices, but sales and price growth were
softening because of weaker demand amid poor affordability.
MLS figures for May showed that residential listings rose a
seasonally adjusted 1.8% from April to 78,878 units. CREA said the
rise was driven by an unprecedented numbers of new listings in
British Columbia, Saskatchewan, Ontario and New Brunswick, which
more than offset a decline in newly listed properties in Alberta in the
month.
In contrast, seasonally adjusted sales activity fell by 1.2% over the
month to 38,133 units, with fewer transactions in British Columbia,
Saskatchewan and Alberta.
"A more balanced market means buyers are in a better negotiating
position," said Gregory Klump, chief economist at CREA said.
"Rising food, fuel and home prices are denting consumer confidence."
Mr. Klump said home buyers were becoming more cautious, likely
resulting in longer listing times and an increase in the importance of
realistic pricing.
TD said the changes between supply and demand would likely cause
housing affordability to improve over the next six to 12 months.
However, high prices in some markets, such as Toronto, would
continue to crimp overall affordability, it said.
Financial Post
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