CMHC changed forecasts for housing starts in Canada for 2013, 2014

Canada Mortgage and Housing Corp. has tweaked its 2013 and 2014 forecasts for housing starts.

CMHC now expects slightly more housing starts this year and slightly fewer in 2014 than in the previous outlook issued in August.

That will result in a period of relative stability, although both years will be slower than 2012, when there were 214,827 housing units started.

The new forecast is for between 179,300 and 190,600 units this year, with a mid-point of 185,000 units.

That's up from the previous 2013 forecast of 182,800 starts - an increase of 2,200 that is almost offset by a lower forecast for 2014.

CMHC's new 2014 range is 163,700 and 205,700 units, or 184,700 at the mid-point, down 1,900 from 186,600 units in the August forecast.

Price growth next year is expected to be in line with inflation, with the average price of houses sold over the Multiple Listing Service in 2014 coming in at $385,200, compared to $378,000 this year, the Crown corporation says in its latest housing market outlook.

CMHC expects that the number of homes sold over the MLS this year will come in around 456,700, which is about the same as 2012, when 454,005 homes changed hands. It forecasts a rise in sales to 468,200 units next year, with sales rising in the first half of 2014 then moderating during the latter part of the year.

Sales have defied expectations this year. At the start of the summer nearly all economists were predicting a decline in sales for 2013, but the market has since rebounded.

Likewise, housing starts, while generally slowing, have been higher than anticipated. CMHC said Thursday it is anticipating starts to be stable next year, around 184,700 units, compared to 185,000 this year and 214,827 in 2012.

While factors such as employment growth and migration are continuing to support the housing market, "in the new home market, builders are nevertheless expected to limit the number of housing starts while inventories of unabsorbed units, completed and under construction, are drawn down," Mathieu Laberge, deputy chief economist of CMHC, said in a press release. "In the resale market, home buyers have been motivated to advance their purchases and lock-in pre-qualified mortgages given the recent moderate increase in mortgage rates. It is expected that existing home sales will increase modestly in 2014 with improving economic conditions."

It has been difficult to make accurate predictions about the Canadian housing market in recent years. The government has been taking steps to cool it off, and economists have been surprised by its resiliency.

In June CMHC was forecasting a 1.6 percent increase in average prices this year and roughly 443,400 sales.

Its current forecast for starts is also slightly higher than in June, when it expected about 182,900 units to get under way this year. bnn.ca

HOUSING STARTS DECLINE IN AUGUST BUT SALES ARE UP

Housing starts in Canada were trending at 180,291 units in August compared to 193,021 in July, according to the Canada Mortgage and Housing Corporation. 

"The trend in total housing starts continued to be relatively stable for a sixth consecutive month, remaining within a narrow range of roughly 182,000 to 188,000 units since March, 2013," Mathieu Laberge, deputy chief economist, said in a CMHC statement.

The standalone monthly seasonally adjusted annual rate (SAAR) for urban starts decreased by 5.8% in August to 163,102 units, mostly because of declines in multiple starts. They were down 8.4% to 104,704 units in August. The single urban starts registered only a slight decline of 0.9% to 58,398 units.

The seasonally adjusted annual rate of urban starts increased in Ontario, the province with more than a third of the population, and held steady in Atlantic Canada. They decreased in the other regions - the Prairie Provinces, British Columbia and Quebec.

On Monday this week, Statistics Canada reported an increase of 4.1% to C$2.2 billion for single-family dwellings in building permits issued in July by municipalities, and a 4.2% increase to C$1.9 billion for multi-family dwellings, over those issued in June. These increases occurred in six of the 10 provinces. They did not offset the 12.8% plunge recorded in June, Statistics Canada said.

Also in recent days, regional real estate boards reported increases in sales of existing homes, propelled by fears of higher mortgage interest rates coming, according to analysts and real estate agents. They ranged from 52% higher in Greater Vancouver, year-over-year, and 21% in Toronto and ranged from +30% to roughly +10% in other major urban centers.

Toronto real estate. GTA REALTORS® Report Mid-Month Resale Housing Market Figures

       Greater Toronto REALTORS® reported 3,206 sales through the TorontoMLS® system through the first 14 days of February 2012 - up by more than nine per cent compared to the 2,933 sales reported during the same period in 2011. New listings were up by 13 per cent over the same period.

       "The GTA resale home market became better supplied during the first 14 days of February. If growth in new listings continues to outstrip growth in sales this year, competition between home buyers will ease. More balanced market conditions on a sustained basis would result in a lower annual rates of price growth later in 2012," said Toronto Real Estate Board (TREB) President Richard Silver.

        The average selling price during the first 14 days of February was $491,493 - up by nine per cent compared to the first 14 days of February 2011. On average, sellers received 99 per cent of their asking price and their homes were on the market for an average of 25 days.

        "Both buyers and sellers are aware of the substantial competition that exists for most listings in the GTA. There is not a mismatch in expectations, so homes sell quickly at close to the asking price," said Jason Mercer, TREB's Senior Manager of Market Analysis.

Summary of TorontoMLS® Sales and Average Price
			February 1 - 14
			2012		2011
			Average		Average
		Sales	Price	Sales	Price
City of Toronto ("416")		1,214	$543,068	1,244	$499,489
Rest of GTA ("905")		1,992	$460,061	1,689	$414,958
GTA		3,206	$491,493	2,933	$450,811
		TorontoMLS® Sales & Average Price By Home Type
				February 1 - 14, 2012
			Sales			Average Price
		416	905	Total	416	905	Total
Detached		417	1,154	1,571	776,011	553,233	612,366
	Yr./Yr. % Change	8%	22%	18%	3%	11%	7%
Semi-Detached		131	209	340	595,453	382,458	464,524
	Yr./Yr. % Change	-2%	12%	6%	18%	9%	12%
Townhouse		103	343	446	390,750	341,459	352,842
	Yr./Yr. % Change	-12%	11%	5%	0%	10%	6%
Condo Apartment		552	247	799	388,215	269,637	351,558
	Yr./Yr. % Change	-7%	15%	-1%	8%	4%	5%

Toronto real estate GREAT YEAR FOR TORONTO REAL ESTATE

Total sales for 2011 amounted to 89,347 – up four per cent in comparison to 2010, reported TREB.

“Low borrowing costs kept buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said TREB President Richard Silver. “If buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area.”

The average selling price in December was $451,436 – up four per cent compared to December 2010. The annualized hike is even greater. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average of $431,276 in 2010.

“Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between buyers and strong upward pressure on selling prices,” said Jason Mercer, TREB’s senior manager of market nalysis.

“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” said Mercer.

News on Canadian mortgage rates and August Toronto market update

     The Bank of Canada kept Canada’s key lending rate at the same place it’s been for a year: 1.00%.
As a result, variable-rate mortgage holders can expect prime rate to also stay put at 3.00%.
     The BoC said this about its decision: In light of slowing global economic momentum and heightened financial uncertainty, the need to withdraw monetary policy stimulus has diminished. Largely due to temporary factors, Canadian economic growth stalled in the second quarter. The Bank continues to expect that domestic growth will resume in the second half of this year. 

      The main takeaway here is that the BoC is no longer talking tough about rate increases, as it has recently. That supports the market’s thesis that rates will remain lower for longer.
      As always, the Bank of Canada’s overriding goal is to keep inflation near 2% “over the medium term.”
Its next interest rate meeting is October 25. The financial markets expect no rate increase then either.
Fi   Greater Toronto REALTORS® reported 7,542 sales through the TorontoMLS® system in August – a 24 per cent increase over 6,083 sales in August 2010. New listings, at 12,509, were up by 20 per cent compared to August 2010. Market conditions remained tight as sales growth outstripped growth in new listings.
     "Home sales in the GTA have stood up well despite a less certain economic outlook," said Toronto Real Estate Board President Richard Silver. "Home sales will be bolstered by low mortgage rates moving forward. The Bank of Canada is expected to be on the sidelines until the second half of 2012 or even into 2013.      However, home ownership affordability in the City of Toronto could be further improved with the removal of the City's land transfer tax. This tax currently represents a substantial upfront cost for home buyers."
     With market conditions remaining tight in the GTA, the average selling price continued to grow strongly in August – up by more than 10 per cent year-over-year to $451,663.
      "We remain on pace for the second best year on record for sales. Approximately 90,000 transactions are expected by the end of December," said TREB's Senior Manager of Market Analysis Jason Mercer. "Major home ownership costs, including the average monthly mortgage payment, remain affordable despite the strong price growth experienced so far this year."

Toronto real estate. JULY RESALE MARKET

     Greater Toronto REALTORS® reported 7,922 transactions through the TorontoMLS® system in July 2011, representing a 23% increase over July 2010. Total sales through the first seven months of this year amounted to 55,863 – down by 1.3% compared to the same period in 2010. After adjusting for seasonal fluctuations, the July figure continued to point to an annual sales result close to 90,000 – in line with results from the previous six months.
      “Strong home sales continued in July, with a substantial rebound over last summer’s slow-down brought about by higher mortgage rates, new lending guidelines and misconceptions about the HST. The greatest rebound was seen in the condominium apartment segment in the City of Toronto,” said Toronto Real Estate Board President Richard Silver. “If the current pace of sales holds up, we could see the second best year on record under the current TREB market area.”
      The average selling price in July was $459,122 – up by almost ten % compared to the July 2010 average of $418,675.
      “Tight market conditions have boosted the annual rate of price growth this year. However, the listings situation is starting to improve. A better supplied market later this year and into 2012 would lead to a more sustainable rate of price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

       Competition from the resale market has impacted demand for new homes, comments the Canada Mortgage and Housing Corporation. With sales of newly built contemporary homes potentially suffering, the 0.3% reduction is hoped to increase interest from buyers and overseas investors.
       Despite worries that the US economic downturn may impact sales, however, there is still overall confidence in the Canadian housing market. A study from the Real Property Association of Canada, revealed yesterday in the Canadian Real Estate Magazine, has found that the country's property market is still growing, and has been for the last eight quarters.
       “The market is largely viewed as stable and attractive, which bodes well for future investment and development,” says the report.

CANADIAN BANKS INCREASED FIXED RATE MORTGAGES

The major Canadian banks - CIBC, RBC Royal Bank and TD Canada Trust have increased fixed rate mortgages by 0.25 percentage points to 5.44 per cent. 

The banks increased it's one-year fixed rate mortgage 0.15 percentage to 3.5 per cent.

The mortgage rates are affected by bond yields. which have also risen as a result of concers over inflation. 

There are no changed to other rates.

The new rates already came into effect. 

If you need mortgage or refinancing, try to get pre-approval right now, before additional rates increases.

The best way to do it is to call Centum mortgage agent Alex Malkhassiants at (416) 723-9383.

Centum has the best and lowest Canada mortgage rates on a wide range of products.

Term	Our Rate	Bank Rate
3 Yr Fixed	3.80%	4.35%
5 Yr Fixed	4.04%	5.44%
Variable	2.10%	3.00%

Updated : February 10, 2011

Reports say that households in Ontario are vulnerable to interest rates hikes. That's why you should think about pre-approval before start searching for Ontario real estate or the house in Ontario.

Alexandre Malkhassiants, Sales Representative & Mortgage Specialist,
Right At Home Realty Inc.,  Real Estate Brokerage
Office: (416) 391-3232
Cell: (416) 723-9383
E-mail: amalkhass@rogers.com
Web site: Toronto real estate
Web site: Ontario real estate
Blog: Lowest Canada mortgage rates

TORONTO REAL ESTATE MARKET AND TORONTO MORTGAGE UPDATE

Toronto real estate market is changing all the time. Particularly now because of the new mortgage and CMHC changes.

Here is a summary. Currently maximum amortization is 35 years. It will be 30 years. This will not have a large impact on qualifying for a mortgage.

Home Equity Loan (line of credit secured by a mortgage) maximum 80% of the purchase price. 

Now Toronto home owner can refinance up to 90%. But after March 18 2011 you can refinance up to 85%.

5% down payment still available for purchases.

The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.

The first change is likely to have the largest impact. Buyers who purchase Toronto real estate with less than 20 per cent of the value of the home are required to purchase government-backed mortgage insurance through Canada Mortgage and Housing Corporation.

Under the new rules, mortgages amortized over longer than 30 years will no longer qualify for that insurance, making it effectively impossible to get a highly leveraged mortgage of more than 30 years in Canada.

The deadline is around 18th of March.

You have to be approved prior to this date to get better conditions.

So if you want to buy Toronto real estate, - buy now!

Mortgage agent Alex Malkhassiants is offering best mortgage rates and advice. 

Alexandre Malkhassiants, Sales Representative & Mortgage Specialist,

Right At Home Realty Inc.,  Real Estate Brokerage

Office: (416) 391-3232

Cell: (416) 723-9383

E-mail: amalkhass@rogers.com

Toronto real estate

Ontario real estate

Lowest Canada mortgage rates

Toronto real estate. Canadians are more cautious with debt

Consumers are more “prudent” with credit after racking up a record amount of household debt earlier this year. Gerry McCaughey, chief executive officer of the Canadian Imperial Bank of Commerce, said he is confident that Canadians remain capable of keeping up with their payments – despite much hand-wringing in recent months about skyrocketing household debt.

The slowdown in mortgage lending is positive even though it means weaker loan growth for banks. “I think the consumer probably is taking a pause and acting in a prudent fashion, and that’s what’s driving this slowdown in the housing market,” McCaughey said.

Toronto real estate. Benefits of using a mortgage broker

1. Save time with one-stop shopping.

It can sometimes take weeks to organize appointments with competing mortgage lenders — homebuyers would rather spend their time house-hunting.

Brokers work directly with lenders and can quickly narrow down a list of options that suit you best.

2. Advice on your financial options.

Mortgage brokers can make recommendations and draw from available mortgage products that match your needs and help you decide what is right for you.

3. Brokers negotiate on your behalf.

Most people are uncertain about negotiating mortgages directly with their bank. Brokers negotiate mortgages every day on behalf of buyers and have a wealth market knowledge to secure competitive rates.

4. More choice means more competitive rates. We have access to a network of major lenders in Canada, so your options are extensive.

5. Ensure that you’re getting the best rates and terms. Even if you’ve already been pre-approved for a mortgage by your bank or another financial institution, you’re not obliged to stop shopping!

6. Get access to special deals and add-ons.

We do the math on which offers might be worth your attention.

7. Things move quickly.

Our job isn’t done until your closing date goes smoothly. We’ll help ensure your transaction takes place on time and to your satisfaction.

8. Get expert advice. When it comes to mortgages, rates and the housing market, we are not limited. We will explain the various mortgage terms, conditions and rates so you can decide confidently.

9. No cost to you. There is (in most cases) no charge for our services.

10. Ongoing support and consultation.

Even once your mortgage is signed and completed, we are here if you need any advice on closing details or even future referral needs.

Alex Malkhassiants is an active Mortgage Professional with Centum Inc. in in Toronto. He works with homebuyers in Toronto and surrounding areas to find the best mortgage for them. Have a question? Please call (416) 723-9383 (cell) 0r email - amalkhass@rogers.com

Toronto real estate. CANADA HOME PRICES INCREASED

Canadian home resale prices rose for a 13th straight month in May, the longest streak since September 2006, the Teranet-National Bank Composite House Price Index showed.

The monthly gain of 1.3 percent was led by a 2.3 percent increase in Ottawa, followed by 1.8 percent in Montreal, according to a report today by National Bank Financial. Overall prices rose 13.6 percent from May 2009. The index has tracked home-price changes in six Canadian cities -- Calgary, Halifax, Montreal, Ottawa, Toronto and Vancouver -- since February 2000.

Housing investment should slow through this year and into 2011 after spending was pulled forward by low mortgage rates and temporary tax credits, the Bank of Canada said July 22. The central bank raised its key lending rate for a second month to 0.75 percent on July 20 and said further action would be “weighed carefully” against an economic recovery.

Alexandre Malhassiants is an active mortgage professional with Centum Mortgage Inc.  and sales representative. Have a question? Please e-mail amalkhass@rogers.com or call 416- 723-9383.

FORECLOSURE IN CANADA: YES OR NO?

Canadians will be spared a U.S.-style wave of foreclosures when the housing market corrects and interest rates rise, according to a report from DBRS Ltd. examining Canada’s $1-trillion mortgage market.

DBRS expects housing prices to fall and acknowledges that the soaring trajectory of consumer debt is worrying. But the debt-rating firm’s study nonetheless paints a picture of a home lending business that is on much more stable footing than the one in the U.S. before its bust.

For that reason, any housing correction in Canada is likely to have a muted effect on the financial sector, nothing like the systemic problem that the U.S. downturn created by crippling banks and mortgage insurers.

“You’re not likely to have factors supporting further [home] price increases; you could have factors leading to price corrections, but they shouldn’t be anywhere near the scale we’ve seen in the U.S.,” said study author Jerry Marriott, who specializes in rating mortgage-backed bonds for DBRS.

“There are just some fundamental characteristics of the Canadian market that make lending in Canada less risky than in the U.S. – a combination of the fact that the banks have continued to use prudent underwriting and maintained better capital ratios.”

The report echoes the conclusions of major banks such as Canadian Imperial Bank of Commerce and Toronto-Dominion Bank. They also call for moderate cooling in house prices after their long runup, as more homes come on the market and higher rates and prices force some buyers out of the market.

CIBC World Markets economist Benjamin Tal said this week that prices might fall by as much as 10 per cent in the next two years, but that a “violent” correction like the United States experienced remains unlikely. TD Bank recently put out a report predicting prices could fall by 2.7 per cent in 2011.

If a correction happens, Mr. Marriott said that it’s unlikely Canadian banks will have to foreclose on many mortgages, saving Canada from one of the factors that exacerbated the U.S. plunge, when banks seized homes and tried to sell them at vastly reduced prices.

Laws in Canada are more lender-friendly, forcing people to keep paying mortgages, and banks were more careful about who they lent to.

Canadians are also less likely to end up under water – owing more than their home is worth – because they generally have more equity in their homes. For the decade and a half leading up to the U.S. housing bust, U.S. borrowers had “consistently” less equity than Canadians, by 8 per cent on average, DBRS found.

What’s more, DBRS argues that while Canadians are racking up debt at a fast pace, they are nowhere near as indebted as some analysts assert, and much less in hock than Americans, so should better be able to handle the stress of higher rates or a housing correction.

While the widely watched measure of debt-to-personal-disposable income shows that Canadians are more indebted than Americans, DBRS argues that the gauge should be adjusted to reflect differences in the two countries, such as the fact that Americans pay lower taxes but have to pay health-care bills out of pocket.

When that’s taken into consideration, at “the end of 2009, Canadian households remained financially less leveraged by 10 per cent to 45 per cent compared with U.S. households,” the report said.

“The Canadian market has been doing just fine, but it is not without risk, and [showing that] is what we’re trying to do in this study,” Mr. Marriott said. CTV.ca

Toronto real estate. TORONTO REAL ESTATE MARKET UPDATE

Record breaking warm temperatures in March helped bring out buyers during the first two weeks of the month.

The Toronto Real Estate Board reported 4,353 existing home sales, up 70 per cent from the same time last year, when the market was in recession.

But sales were also strong enough to break the mid-month peak set in March of 2006 by 16 per cent, according to the board.

“The spring-like weather in the first half of March brought the first green sprouts of the recurring spring market,” said board president Tom Lebour.

The average price for March mid-month transactions was $440,153, up 20 per cent over last year.

Some good news for buyers was that new listings improved by 34 per cent over last year.

“Look for double digit price increases to cease later in 2010, as new listings rebound from the low levels experienced in 2009,” said Jason Mercer, TREB’s senior manager of market analysis. “Increased listings will give buyers more choice, resulting in less upward pressure on home prices.”

If you want to know more about Toronto real estate, call sales representative and mortgage agent Alexandre (Alex) Malkhassiants, Right at Home Realty,  with all your questions: (416) 723-9383 (cell).

Toronto real estate. February record sales activity jumps 74 per cent in Toronto

The Greater Toronto Realtors reported a 74 per cent increase in sales for the first two weeks of February compared to last year, when the recession hit hardest.

There were 3,555 sales through MLS during the first half of this month, compared to 2,0044 during the same period in 2009. This month's activity was even 7.7 per cent higher than the previous record in 2006.

"Home ownership demand remains strong in the GTA, as households remain confident that economic recovery is at hand and that ownership housing will continue to be a quality long-term investment," says Tom Lebour, president of the Toronto Real Estate Board.

Accordingly, the increased activity has led to higher prices as well. The average price for February mid-month transactions was $429,997, up 18 per cent from 2009. That's also drawn more sellers out hoping to cash in. New listings with the Toronto Real Estate Board's boundaries were up 15 per cent to 6,212.

The board's senior market analyst Jason Mercer says double-digit price increases wil continue through the first quarter of the year.

"However, as new listings continue to increase,  creating a better supplied market, we will see the annual rate of price growth moderate into the single digits," says Mercer.

Toronto real estate. Canadian housing market sound

Canada's hot housing market received a clean bill of health from a major Canadian bank Friday, dismissing concerns voiced by the Bank of Canada that consumers may be taking on too much debt.

In a report on house and stock market rallies, economists with CIBC World Markets argue that the central bank's concerns are exaggerated, even though the bank was justified in raising them.

"Canada is not doomed to see a U.S.-style housing and mortgage blow-up," wrote CIBC's chief economist, Avery Shenfeld.

"The lessons for the U.S. were not that an extended period of low rates caused a mortgage and housing blow-up. It was a massive failure to supervise the worst excess of the American mortgage market that caused the trouble."

Last week, the Bank of Canada called record household debt the top risk facing the country's financial system, a warning repeated in Toronto earlier this week by the central bank's governor, Mark Carney.

The central bank did note that the risk to Canada's banking system was small, but worried that when interest rates rise to normal levels, up to 10 per cent of households could face difficulties in meeting monthly payment requirements.

Fresh data released Friday showed that spending by Canadian households averaged $71,360 last year, two per cent more than in 2007, with shelter representing about 20 per cent of the load.

Others have also expressed concern about consumer debt levels. In a note Friday, Bank of Montreal economist Sal Guatieri said at current rates the debt burdens being piled on by Canadians could reach American and British levels "just before they keeled over."

CIBC's Shenfeld and Benjamin Tal say their analysis shows that there is basis for the concern, but there are also critical factors that make the Canadian situation different.

By their calculation, the current $350,000 average selling price for a home in Canada is about seven per cent too high.

But they also say that with housing starts on the rise, thereby increasing the supply, the price of housing in Canada will moderate, not collapse.

And Canadian households are not exposed as their southern neighbours were to a market collapse.

Some have substantial equity in their homes and could downsize. Others, about 40 per cent of mortgage holders, have high debt payments because they are making accelerated pay-downs on principal, which they could suspend.

They note that while mortgage interest rates average about 4.4 per cent, payments as a share of after-tax income are higher - at the level they would be if rates were effectively six per cent.

And "history suggests many will jump into fixed mortgages" once variable rates come under upward pressure.

"The Bank of Canada was justified in raising these concerns, but once you get into the details, some of those threats don't appear quite as ominous," Shenfeld explained in an interview.

The CIBC economists agree with Carney that interest rates will rise, likely starting in the second half of next year, but "we don't see that as endangering a bubble either in the mortgage market or the equity market."

In a separate analysis, Shenfeld, Peter Buchanan and Krishen Rangasamy, all of CIBC, judged that the equity markets in Toronto still have room to grow even if some analysts believe stocks are overpriced already.

And they predict the Canadian dollar will average $1.05 US next year.

winnipegfreepress

Toronto real estate. TORONTO REAL ESTATE MARKET CONTINUE TO SURPRISE

Perhaps it was those uncharacteristically high temperatures that had homebuyers out in droves in the first two weeks of November. Certainly, they had gotten over the doom and gloom of the first two weeks of last November.

According to the Toronto Real Estate Board, realtors reported 3,666 sales, a staggering 84% up on the same period last year. Prices year-over-year rose a more modest, but still impressive, 10% to hit an average of $415,066.

"Increased interest in ownership housing has been widespread throughout the GTA and across all housing types," notes TREB president Tom Lebour in a release. "However, it is important to point out that we are now making comparisons to the fall of 2008 when we experienced a marked decline in sales and average price."

The numbers for year-to-date sales also rose a healthy 11% compared with the same period in 2008, to reach 78,233. The average price for this period was $393,180 a 3% rise over the same period last year.

"Sales and average price in the GTA this winter will be well above levels reported throughout the fourth quarter of 2008 and the first quarter of 2009," notes Jason Mercer, TREB's senior manager of market analysis in a release.

Across Canada, sales had increased in the month of October. According to numbers from the Canadian Real Estate Association, home sales activity through the Multiple Listing Service was the highest ever for an October. The Canadian real estate boards reported 42,288 residential sales, a 41.5% hike over the same month last year. The year-to-date total rose to 401,124, a 1.6% increase on the same period last year.

The average sale price in October was $341,079, a 20.7% rise on last year.

"Low interest rates and upbeat consumer confidence continue to release the pent-up demand that built late last year and earlier this year," notes CREA president Dale Ripplinger in a release. "The release of that pent-up demand has boosted national sales activity to new heights and is drawing down inventories."

The marked rise in resale housing demand has continued to reduce inventories of unsold homes. In October, MLS had 194,994 homes listed for sale, down 20.8% on the same month last year.

New homes in the GTA's 905 region have also skyrocketed, with home builders showing a 173% increase in low-rise sales for the month, compared with October 2008.

Activity may have been on the rise in Canada, but south of the border where tentative signs of recovery had been evident, October housing starts and building permit numbers came as a rather nasty shock.

Builders' sentiment also remained rather gloomy. The National Association of Home Builders/Wells Fargo Housing Market Index showing builder confidence in the market for newly built, single-family homes remained unchanged at the low level of 17 in November.

Residential housing starts for last month, released by the U.S. Department of Housing, plunged an unexpected 10.6% from September, coming in at a seasonally adjusted annual rate of 529,000. That's 30.7% down on the October 2008 rate. The rate for single-family housing starts in October was 476,000, a 6.8% decrease from September. Multiple family units also fell 15.2% month-over- month in October to reach 89,000 units. These numbers bring construction to the lowest level since April.

Building permits in October, required long before construction begins, were also down. Overall permits fell 4% from September to a seasonally adjusted annual rate of 552,000. This is 24.3% down from October last year. The single- family permits component inched down 0.2% month-over-month to reach a rate of 451,000 in October. However, permits for multiple units were up 6% month-over- month to 123,000.

Analysts found some positives.

"There will still be people buying homes, either for the first time or moving up, thanks to the extended and expanded government tax credit," notes Jennifer Lee, economist, manager at BMO Capital Markets. "But in the meantime, it will take a while before residential construction begins to contribute meaningfully to growth."

If you want to know more about Toronto real estate, call sales representative and mortgage agent Alexandre (Alex) Malkhassiants, Right at Home realty,  with all your questions: (416) 723-9383 (cell).

Toronto real estate. Healthy Toronto housing market seen in 2010

Toronto's housing market will stay healthy next year as new home groundbreakings in Canada's most populous city jump even as existing home sales cool, said the Canada Mortgage and Housing Corp.

The federal government agency expects a 26-percent rise in housing starts next year to 36,140 units.

But existing home sales are expected to dip to 78,000 in 2010 from 82,000 this year. Still, CMHC expects average prices to rise by 5 percent, which is in line with the annual average for this decade.

The agency said that while overall demand for home ownership is expected to moderate next year, households with stable employment will take advantage of improved affordability.

Housing has been a rare bright spot as the Canadian economy struggles to emerge from recession. Toronto has seen an upswing in housing activity in recent months, helped by low mortgage rates.

The Bank of Canada cut interest rates to a record low this year and conditionally pledged to keep them there until at least the end of the first half of 2010.

Younger Canadians feel prepared to buy a first home

While homeowners of all ages agree that purchasing a house is a solid long term investment, there is a marked difference in today's 18-34 year old first time home buyers  actions and attitudes as compared to older generations aged 55+ when they were first time buyers of the same age.

Young Canadians aged 18-34 are more likely to feel they are financially ready to buy a house than their parents and grandparents were when they were purchasing their first home. What is motivating this belief? The TD Canada Trust Generational Homeownership Study reveals a trend by 18-34 year olds towards purchasing older homes and a significant increase in young homebuyers who are relying on financial assistance from family to make their home purchase a reality.

When asked what prompted them to consider buying their first home, just over half of younger Canadians (51%) said they felt financially ready compared to 37% of older Canadians 55+ when they were thinking of buying their first home. However, over a third of younger Canadians 18-34 (36%) said they could not have afforded their first home without help from family (compared to 16% of those 55+), and 27% said that they received money as a gift or borrowed from family/friends to put towards the purchase of their first home (compared to only 10% of those 55+).

When today's Canadians 55+ bought their first home, paying off their mortgage was a top priority; more important than it is to today's younger homebuyers. Today, less than half of young Canadian adults (49%) agree that paying off their mortgage is a first priority, compared to 64% of Canadians over 55.But for Canadians across all generations, their home is their biggest investment. Eighty-eight per cent of Canadian adults 18-34, 87% of Canadians 35-54 and 78% of 55+ all agreed that their first home was an investment for the future. Sixty-four per cent of younger Canadian adults 18-34 said that they put all their savings into their first home compared to 62% of Canadians 55+ and 54% of Canadians 35-54.

The research revealed that when it comes to getting a mortgage, young adults tend to shop around more than their older counterparts did. Sixty-two per cent of older Canadians were loyal to their own bank and received financing where they were already a customer, compared to 36% of younger homeowners who were more likely to shop around and take recommendations.

"There are so many different options available now, and easier access to information with the use of the internet, that it's no wonder today's first time homebuyer shops around a bit more," added Wisniewski. "It's a great idea to look around and see what's available. 30 years ago when people were looking for financing, they usually had limited choices. Now there are many options to explore with your bank including a variety of fixed rate mortgages, variable rate mortgages, and even green mortgages for buyers who want to lessen their footprint on the environment." tradingmarkets.com

Banks reaching out to help new Canadians buy a home

In the past, many immigrants to Canada came by sea – often landing at Pier 21 in Halifax. Nowadays, as a new Canadian, you are more than likely to touch down at Pearson International Airport after a journey of several hours rather than days or weeks.

    Either way, once on the ground, making a financial start has always been a tough route. Thankfully, today’s evolution of technology makes it easier to prove your creditworthiness in Canada, and to qualify for a mortgage in order to buy your first home here.

    "One of the key things … is credit. You have to find some sort of credit history," says Jim Rawson, regional manager of Invis mortgage brokerage firm in Toronto. "With the Internet, with easy access to information, we can now check credit from just about anywhere, so we can get credit histories much easier than we could in the past."

    As with any financial agreement, your credit status will determine how much you can borrow.

    "There are different kinds of qualifications, depending on how long you’ve been here and depending on whether you have a job or not, whether you’re landed immigrants or here on work permits," Mr. Rawson says. "But there are several lenders that have new-immigrant policies."

    Every country has its own customs and laws when it comes to home purchasing, and Canada is no different. Colleagues and friends can be a good source of recommendations for trusted accredited real estate agents, lawyers and mortgage brokers to guide you through the process.

     Canada Mortgage and Housing Corp. has also produced The Newcomer’s Guide to Canadian Housing, which includes a section on what to consider when buying a home in Canada – right from scoping out a location, to the documents required, to budgeting for the many expenses involved, and the process of making an offer.

    As well as the usual costs attached to home purchasing, as a new immigrant, you will need to add on the additional time and expense of obtaining proof of your immigration and financial status and maybe even fees for wiring money from your country of origin to cover the purchase deposit.

     Buying a home will likely be your largest financial commitment when you come to Canada, but it may not necessarily be the most complex purchase.

    "Getting a mortgage for a house was easier than getting a car loan," says Graeme Morton, who emigrated from Scotland to Guelph. "I had to get my colleague to counter-sign to get the car loan – which was less than $10,000.

    "And as for cellphones, they asked for so much proof as to who we were it was unreal. Obviously, houses are the less portable of the three!"

    If you do not have a credit history, then financial institutions with specific programs for immigrants, such as HSBC and Scotiabank, may help.

    "We have a program, where, even before they establish their Canadian credit history, new immigrants who are willing to put down a 30% downpayment will most likely be approved for 70% of their home purchase," says David Kuo, vice- president, retail branch network for HSBC, Ontario East.

     Mr. Rawson at Invis says that in the past, immigrants could have been required to have a larger deposit to secure a mortgage.

    "If you’re not landed [a permanent resident] you might be looking for a larger deposit," Mr. Rawson says. "But the insurers CMHC and Genworth have pretty decent new-immigrant policies that [allow for] high-ratio financing." kelowna.com

    If you want to know more about Toronto real estate, call sales representative and mortgage agent Alexandre (Alex) Malkhassiants with all your questions: (416) 723-9383 (cell).

Canada housing sales hit record in July

July housing sales across the country were the best on record for the month and the largest year-over year increase in two years, said the Canadian Real Estate Association.

The Ottawa-based group, which represents about 100 boards across the country, said there were 50,270 units sold via the multiple listing service last month. That's an 18.2 per cent jump from a year ago. It also marked the first time sales had topped 50,000 in July.

 "The difference in the resale housing market now, compared to the beginning of the year, is night and day and nowhere is this more evident than in the west," said Dale Ripplinger, president of CREA. "Homebuyers recognize that interest rates and prices have bottomed out, and are taking advantage of excellent affordability before prices and interest rates move higher."

A five-year fixed-rate mortgage, the most popular product among consumers, is still available for under four per cent at some financial institutions. Variable rate mortgages, tied to prime, remain in the three per cent range and are not expected to rise until June. The Bank of Canada has pledged not to change its lending rate until then — but it is not an ironclad guarantee.

The low rates seem to have worked and have the housing market even hotter than it was in 2007, a record year. July sales in 2009 were 3.9 per cent above the previous July high set in 2007.

It has been a stunning reversal for a real estate market that had almost ground to a halt over the winter. MLS sales on a seasonally adjusted basis have risen for six straight months and are up 61.2 per cent off the decade-low set in January. Sales are only off 1.4 per cent from the May, 2007 peak.

The strength in the market is being felt right across the country. Vancouver sales last were up 90 per cent from a year ago to lead the pack. Toronto sales climbed 28 per cent from a year ago and Edmonton sales rose 28 per cent during the same period.

With demand strong in the country's highest-priced markets, it is skewing average price but in the opposite way from what was happening when the market was slumping. The average price of a home sold on MLS last month rose 7.6 per cent from a year ago to $326,832.

Part of the pressure on prices is coming from a dearth of supply. New listings in July were down 13 per cent from a year ago to 73,444. It marked the seventh monthly year-over-year decline in new listings.

The overall supply of homes for sale on the MLS was down to 219,982 at the end of July, a 12.5 per cent decrease from 2008. Based on present activity, there is only 4.4 months of housing inventory in the mark. That's a sharp contrast to the 12.8 months of inventory available in January.

"Home sales through the MLS systems in July provide clear evidence that sentiment about making major purchases continues to improve," said Gregory Klump, chief economist with CREA. "Activity may level out over the rest of the year as home prices and mortgage lending interest rates creep higher. The number of new listings coming onto the market is down from last year and the rebound in sales activity is paring inventories, so the number months of inventory is on the wane. These trends are supporting average prices."

vancouversun.com