Tuesday, March 27, 2012

This Weeks Economic Outlook

United States

• This week began with a sharp increase in U.S. Treasury interest rates

• However, poor purchasing manager indexes out of the euro zone and China provided a reminder of the weak health of the global recovery

• As a result, stock markets sold-off and U.S. Treasury yields went up in tandem

• The bottom line is that, even if we are not going to see 10-year yields dip below 1.7% as they did back in September of last year, this doesn’t mean that bullish sentiment has been permanently dashed



Canada



• Canadian inflation edged up in to 2.6% February compared to a year earlier. Core inflation reached 2.3%, getting somewhat closer to the top of the Bank of Canada’s inflation target. The inflation increase was largely anticipated by the market and reflected higher gasoline and food prices.


Just Listed!

152 Santamonica Blvd.

Saturday, March 24, 2012

Alex Prasoulis's Toronto Real Estate Blog: Home prices up in February but gains slowing

Alex Prasoulis's Toronto Real Estate Blog: Home prices up in February but gains slowing:   OTTAWA – March 23rd, 2012 – The MLS® Home Price Index 1 , the leading measure of Canadian home prices, continued rising in February 2012...

Alex Prasoulis's Toronto Real Estate Blog: GTA REALTORS® Report Mid-Month Resale Housing Mark...

Alex Prasoulis's Toronto Real Estate Blog: GTA REALTORS® Report Mid-Month Resale Housing Mark...: TORONTO, March 19, 2012 – During the first 14 days of March, Greater Toronto REALTORS® reported 4,215 transactions through the TorontoMLS ...

GTA REALTORS® Report Mid-Month Resale Housing Market Figures

TORONTO, March 19, 2012During the first 14 days of March, Greater Toronto REALTORS® reported 4,215 transactions through the TorontoMLS system, representing a seven per cent increase compared to the same period in 2011. The number of new listings was down by two per cent year-over-year to 6,970.

“Home buyers continue to benefit from the affordable housing situation in the GTA. Immigration to Toronto and surrounding areas adds to the pool of home buyers every year. The economic and ethnic diversity found in the GTA consistently attracts newcomers and foreign investment,” said Toronto Real Estate Board (TREB) President Richard Silver.

The average selling price for transactions between March 1 and 14 was $502,155 – up by more than nine per cent compared to the first 14 days of March 2011. On average, homes sold for 100 per cent of the asking price within three weeks.

“Strong competition between home buyers in many parts of the GTA has resulted in sellers realizing their asking price in a short period of time. The fact that homes are selling for 100 per cent of the asking price, on average, suggests that sellers are very much in tune with the current market situation and know the fair market value of their home,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Home prices up in February but gains slowing

 
OTTAWA – March 23rd, 2012 – The MLS® Home Price Index1, the leading measure of Canadian home prices, continued rising in February 2012, according to statistics released today by The Canadian Real Estate Association (CREA). Year-over-year comparisons continued shrinking, providing further evidence that Canadian home price growth may be topping out.
Highlights:
  • The Aggregate Composite MLS® Home Price Index in February 2012 was up 5.1% from its year-ago level, the smallest increase since June 2011.
  • Toronto posted the largest increase (7.3%), but momentum continued fading. Price increases also moderated further in Calgary (2.5%) and Montreal (1.6%).
  • Gains decelerated in all housing categories tracked except 2-storey single family homes.
  • The Aggregate Composite MLS® Home Price Index rose 1.1% on a month-over-month basis in February 2012.
  • Prices were up most for 2-storey single family homes (1.6%), while townhouse/row and apartment units saw smaller gains (0.4% & 0.5% respectively).
The MLS® Home Price Index in February 2012 was up 5.1 per cent from levels in February 2011. The increase was the smallest since last June, and marked the fourth consecutive month in which gains slowed.
“MLS® HPI trends for February show that home price growth is generally slowing,” said Gary Morse, CREA President. “At the same time, price gains and trends differ among housing markets tracked by the index. Since all real estate is local, buyers and sellers should talk to their local REALTOR® to best understand how home price trends are shaping up where they live.”
The MLS® HPI remained above its year-ago level in all five of the markets tracked, led by Toronto (7.3 per cent). It also remains above year-ago levels in all housing categories tracked, led by two-storey single family homes (6.9%).
The MLS® Home Price Index rose 1.1 per cent in February 2012 as compared to January.
“The index typically rises in February from the previous month as demand ramps up leading into the spring housing market,” said Gregory Klump, CREA’s Chief Economist. “The monthly price increase in February this year was less than what we saw in either of the past two years, which is more evidence that the trend for Canadian home prices is slowing.”
Among housing categories tracked by the index, single family homes posted the biggest month-over-month gains in most markets, particularly in Toronto where they are in short supply relative to strong demand.
In focus: the condo apartment market
Interest in the market for condo apartment units has increased recently, particularly Toronto’s condo market. With Toronto’s year-over-year increase in the MLS® HPI for apartment units (4%) having surpassed gains in other major Canadian condo markets in February 2012, it is likely that Toronto’s condo market will remain of particular interest.
The MLS® HPI shows that price gains are decelerating for condos in Toronto. In other markets, year-over-year price gains for condo apartment units are near the overall rate of consumer price inflation. This suggests that the condo market is not overheating.
A number of new condominium apartment projects have been completed in the GTA over the past year. Some of these new units have been listed for sale, resulting in a better supplied market. The number of months of inventory for condo units in the GTA on the Toronto Real Estate Board’s MLS® System is running close to its long term average. This suggests the GTA condo market is balanced, which is consistent with moderate price growth.
The number of condo developments slated for completion annually is unlikely to result in a glut of supply relative to demand and consequent price correction. Barring an unexpected spike in interest rates, economic downturn or overly restrictive further changes to mortgage regulations, the condominium apartment market is likely to remain balanced for the foreseeable future.
For additional information, including interactive tables, please go to: www.homepriceindex.ca
MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 100,000 REALTORS® working through more than 100 real es­tate Boards and Associations.
Further statistical information can be found at http://www.crea.ca/public/news_stats/media.htm.
1The MLS® Home Price Index is based on single family, townhouse/row unit, and apartment unit sales activity in Greater Vancouver, Fraser Valley, Calgary, Greater Montreal, and Greater Toronto.