RE/MAX Market Outlook report says the Market will be balanced in 2012

Mississauga, ON (December 6, 2011) - Canadian residential real estate defied conventional logic and outperformed expectations in 2011, posting another solid year of housing activity virtually across the board. The trend is expected to carry forward into 2012 as Canadians continue to demonstrate their faith in home ownership, despite concerns over the European debt crisis and its impact on the global economy, according to a report released by RE/MAX.
The RE/MAX Housing Market Outlook 2012 examined trends and developments in 26 major markets across the country. Eighty-eight per cent (23/26) anticipated average price increases by year-end 2011 - with percentage hikes ranging from one to 16 per cent. The forecast for 2012 shows the upward trend moderating, but still ahead of 2011 figures. Overall home sales are expected to remain on par or ahead of last year's levels in 85 per cent (22/26) of markets in 2011 - including Saskatoon with a year-over-year percentage increase of 13 per cent and an eight per cent uptick in Calgary, Winnipeg, Hamilton-Burlington and Sudbury. Almost half of Canadian markets will match the 2011 performance, while the remainder should post increases ranging from one to five per cent next year.

London Condo Starts up this month!

LONDON, December 8, 2011 - New home starts were up in the London Census Metropolitan Area
(CMA) in November according to preliminary figures released today by Canada Mortgage and
Housing Corporation (CMHC). Builders laid foundations for 130 homes compared to 105 in November
2010.“Increased demand for townhomes homes raised new construction levels last month. Townhomes
offer a convenient lifestyle and are a more affordable option for buyers who want a new rather than an
existing home,” said Margot Stevenson, CMHC’s Senior Market Analyst.
Year-to-date, builders have started 1,082 single-detached homes compared to 1,388 in the first 11
months of 2010. Total starts are 19 per cent below last year for the same period.
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help
Canadians access a variety of high quality, environmentally sustainable and affordable housing
solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and
knowledge to support and assist consumers and the housing industry in making informed decisions.

The Condo Market is soft!

Home sales in November 2011 dipped 7.1%, due in large part to a drop in condo sales. “Sales of detached homes were down only a marginal 1.8% from the previous November,” says Jack Lane, President of the London and St. Thomas Association of REALTORS®. “It was the condo market that was soft. Bear in mind, however, that condo sales for November 2010 were up 16.2% over November 2009, so the bar was set pretty high. The good news for condo sellers heading into an early Spring market is that there will be pent-up demand; the good news for buyers interested in condos is that there will be plenty of supply at a very reasonable price.” Overall Year-to-Date sales of all house types are down a modest 1.1% from last year. Listings were up 1.6% in November, at month-end the Association’s inventory of listings stood at 3,414, and the average price for a home (including condo sales) in the Association’s jurisdiction stands at $234,602, up 0.2% from the previous month. The year to day average price now stands at $232,819 which is up 4.1% over January 2011.
The news from St. Thomas was very positive. Fifty homes sold in London’s Sister City in November, up 22% from November 2010. The average price for a home in St. Thomas Year to Date stands at $185,303.

U.S. new home sales increase by 1.3% in October

According to the Economics Department of RBC, sales of new single-family homes in the U.S. increased by 1.3% to a seasonally-adjusted annualized rate of 307K in October, from September’s pace of 303K (initially reported as 313K.) Market expectations going into the report were for a pace of 313K, which would have represented a flat reading based on the initially reported pace for September. October’s increase in the pace of home sales follows a 3.4% increase last month, and represents the fastest pace of sales since May. Increased sales activity combined with an unchanged number of new homes available for sale to push months’ supply of unsold home down to 6.3 from the 6.4 seen in September (initially reported as 6.2.)

We were at the NAR Conference in Anaheim California

Record dollars invested into the Canadian Housing industry

Billions spent in new construction, renovation, and infill over the past decade have contributed to a serious upswing in the calibre of Canada's housing stock, propping up residential average price in the country's major centres.
Since 2000, the value of a Canadian home has doubled, rising from $163,951 to $339,030 in 2010. Nowhere has the upswing been better captured than in both the value of residential building permits issued nationally between 2000 and 2010 - at $340 billion - and the estimated $450 billion spent in renovation. The impact of these two forces alone has fuelled the Canadian residential real estate market - as well as the construction industry - for more than 10 years.
As a result, investment in Canada's housing stock is at an all-time high in the 16 Canadian residential real estate markets examined in the RE/MAX Housing Evolution Report. Higher quality housing translated into extraordinary price appreciation across the country - with 62 per cent (10 markets) experiencing increases in excess of 100 per cent since 2000.

Market stays the course!

The London St. Thomas Association of Realtors reported that Overall home sales in October 2011 were up 3% over the previous year. “The condo market was a little soft this month,” says Jack Lane, President of the London and St. Thomas Association of REALTORS®. “However, the more significant statistic to look at is the Year to Date figure, which shows condos down less than one percent from last year. In fact, total sales Year to Date are down a very marginal 0.6% from last year, so the bottom line is this: real estate in our jurisdiction is absolutely staying the course . . . and that’s good news when you consider the fact that our Year to Date sales at the end of January 2011 were down 9.3%.”

Listings were up 1.3% in October, at month-end the Association’s inventory of listings stood at 3,678, up 7.7% over last year at this time, and, the average price for a home (including condo sales) in the Association’s jurisdiction stands at $232,714, up 1% from the previous month and 4% up from January 2011. “What these stats tell us is that the market is both a balanced one – good for Buyers and Sellers,” Lane explains, “and one that offers buyers a great deal of choice, both in terms of price and style of home. Given interest rates that continue historically low and our area’s great affordability compared to other centres, it’s a good time for renters to consider a move into homeownership.”