Rockies West Realty, Invermere BC Real Estate

November 2012 Sales Statistics for the Columbia Valley

Rockies West Realty — Thu, 15 Dec 2011 20:08:00 GMT

are now available at http://statistics.rockieswest.com

Déjà Vu in November Housing Market

Rockies West Realty — Wed, 14 Dec 2011 18:36:00 GMT

Vancouver, BC - December 14, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the Kootenay area increased 14.6 percent in November compared to the same month last year. A total of 165 units were sold last month compared to 144 units in November 2010. The average MLS® residential price was up 2.8 percent to $275,939 in November compared to $268,500 in the same month last year.

"BC home sales continued to gain ground in November," said Cameron Muir, BCREA Chief Economist. "After waning during the first half of the year, consumer demand has steadily increased since the summer months."

"Low mortgage interest rates remain a key driver in the housing market, heping to maintain affordability and purchasing power," added Muir.

Year-to-date, Kootenay area residential sales dollar volume decrease 5 per cent to $495.9 million, compared to the same period last year. Residential unit sales decreased 3.7 percent to 1,832 units, while the average MLS® residential price decreased 1.4 percent to $270,693 over the same period.

Read the complete report (pdf)

Lacklustre Year Ahead For Canadian Economy: CIBC

Rockies West Realty — Fri, 09 Dec 2011 18:25:00 GMT

December 8,2011

Interest rates to stay low through 2013 as fiscal tightening hits global growth

Canada will feel the squeeze of a slowing global economy in 2012 but can avoid recession as continued low interest rates support business investment and cooler inflation gives consumers more spending power, notes a new report from CIBC World Markets Inc.

"As an open economy, Canada can't help but feel the disappointment of a barely half-speed world," says Avery Shenfeld, chief economist at CIBC in a new economic forecast. "Excepting Europe, we're not destined for recession, but global growth will barely top three per cent next year, and 2013 won't be a whole lot better, well below the bounteous five per cent pre-recession pace."

...

In Canada, Mr. Shenfeld says growth will pack a lighter punch at roughly a two per cent pace in the next two years. This should keep the jobless rate stuck at near current levels and the Canadian economy dependent on low rates even longer. "2012 is on tap to be a lacklustre year for the Canadian economy. While the Bank of Canada had earlier warned about rate hikes in 2011, the next leg of a tightening cycle looks unlikely to be required before 2014, as the economy continues to need exceptionally low rates to stay above water."

...

As for Canadian real estate, a sluggish economy will likely lead to housing prices leveling off over the next two years, says Deputy Chief Economist Benjamin Tal. And "further out, the most likely scenario is that eventual increases in rates will lead to a modest decline in prices, in the magnitude of 10-15 per cent."

Mr. Tal adds that "a flattening in house prices in the next year or so is a necessary condition for such a soft lending scenario" and will pave the way for a healthier housing market later in the decade with market fundamentals likely caught up with prices.

Read the complete report (pdf)

Brookfield Residential Property Services Acquires Prudential Real Estate

Rockies West Realty — Fri, 09 Dec 2011 18:21:00 GMT

Wednesday, 07 December 2011

Brookfield Residential Property Services (parent company of Royal LePage) has announced that it has acquired Prudential Real Estate and Relocation Services, making it now the third largest residential real estate brokerage business in North America, as well as the second largest global relocation services provider in the world.

This latest move greatly strengthens Brookfield’s presence in the US, and means that they have expanded into nine countries with focus and growth in China, India and Brazil.

Additionally, this makes Brookfield the largest provider of relocation services to the government. This acquisition marks the third US company that it has taken over, after Real Living and GMAC.

This deal gives Brookfield the opportunity to “put a footprint on both sides of the border to service clients at the highest level.”

“When companies like this, with such synergies, come together, there is an opportunity to provide new services, particularly when the industry is ripe for change- for change in technology, to altering the approach to provide information to the consumer, and to provide access to more resources by having more people in the field,” Phil Soper, President and CEO Brookfield Real Estate Services - Royal LePage told Propertywire.ca.

Additionally, they have great confidence in the US property markets, and that recovery is in the future, noting the strength of the link between the US property market and its’ Canadian counterpart. “We believe that the US is the land of the entrepreneurs, and they will recover. There will eventually be a shortage of housing stock. We will be a major player in that (opportunity).”

“With the acquisition, more than one-third of Fortune 100 companies are its clients. Today, Prudential's real estate and relocation services businesses join a global company with a track record of over 100 years of success," said Earl Lee, President of Prudential Real Estate and Relocation Services, who will continue to lead the US business with an eye to focus on growth. "We're excited to become part of a company that is focused on and deeply immersed in the real estate sector and is in the business for the long-term."

In many ways, Soper feels that Brookfield is “bucking the trend”, and is excited about the prospects that exist with their latest acquisition.

“People the world over have been shedding their real estate assets. We are the ones bucking the trend, the only ones really with big transactions. This really is a testament to the strength of the Canadian Real Estate Industry and to the strength of the Canadian banking system too.”

Housing Forecast Points to Market Stability in 2012

Rockies West Realty — Tue, 08 Nov 2011 16:48:00 GMT

BCREA 2011 Fourth Quarter Housing Forecast

Vancouver, BC – November 8, 2011.The British Columbia Real Estate Association (BCREA) released its 2011 Fourth Quarter Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to rise 3.2 per cent from 74,640 units in 2010 to 77,000 units this year, increasing a further 3.9 per cent to 80,000 units in 2012.

“Low mortgage interest rates are expected to persist through 2012 keeping affordability on an even keel,” said Cameron Muir, BCREA Chief Economist. “However, headwinds on the economic front will constrain consumer demand over the next year to below the ten-year average of 87,600 units.” A record 106,300 MLS® residential sales were recorded in 2005.

“Moderate consumer demand combined with larger inventories of homes for sale means BC housing markets will experience little upward pressure on home prices through 2012,” added Muir. The average MLS® residential price in the province is estimated to rise 11.8 per cent to $564,600 this year, and is forecast to decline 2.5 per cent to $550,500 in 2012.

Read the complete report (pdf)

No Rate Hikes Before Q3 2012: Reuters Poll

Rockies West Realty — Fri, 21 Oct 2011 17:49:00 GMT

Thursday, 20 October 2011 Property Wire Canada

It seems that the time limited offer for low-interest rates is likely to be extended- this according to a recent Reuters survey of 40 economists and strategists.

Respondents indicated that they do not believe that the Bank of Canada will hike rates rate before well into next year- Q3, to be exact, citing lingering and deep effects from the economic trouble that is growing in the Eurozone, and the likely slowness of a recovery there as the main drivers behind their predictions. In August, the group had predicted a rate hike in Q2 2012, but apparently global economic trouble has escalated, and decisive action is not happening as quickly to stem the bleeding as many would like.

While it is widely felt that the Canadian Economy itself is generally healthy enough to sustain itself, it is now also widely felt that the strong economic headwinds coming from different corners of the globe are strong and significant enough to compel the Bank of Canada to stay put for an extended period of time- or even possibly cut rates further./p>

Also, forecasts for interest rates dropped in the latest poll, from a median target of 1.5 %from 1.75 % in the August poll.

Of the 35 forecasters that participated in both polls, 26 downgraded their forecast in one or more quarter and seven downgraded their forecasts for all five of the quarters forecast. Only two upgraded their forecast.

95% of respondents indicate that rates will hold at the next interest rate announcement, slated for October 25.

September Sales Statistics for the Columbia Valley

Rockies West Realty — Wed, 19 Oct 2011 19:37:00 GMT

are now available at http://statistics.rockieswest.com

Canadian Home Sales Pick Up In September

Rockies West Realty — Wed, 19 Oct 2011 16:13:00 GMT

OTTAWA - October 17, 2011 - According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity picked up in September 2011.

Highlights:

Sales activity rose 2.7 per cent in September from the previous month.
Holding in line with the ten-year average, activity during the first nine months of this year pulled ahead of sales over the same period last year.
The number of newly listed homes held steady when compared to the previous month.
The national housing market tightened in September from the month before, but remains firmly entrenched in balanced territory.
The national average price posted the smallest year-over-year increase since January.

“The Canadian housing market remains a bright spot against a backdrop of mixed headline news about the global economy,” said Gary Morse, CREA President. “Low mortgage rates continue to draw buyers to the housing market, while recently tightened mortgage regulations are working as intended. That said, housing market trends often diverge from national trends due to local factors, so buyers and sellers should talk to a local REALTOR® to understand housing market trends at play where they live.”

“Canada’s housing market remains stable amid continuing financial market volatility, contributing to Canadians’ confidence in the economy and providing support for Canadian economic growth,” said Gregory Klump, CREA’s Chief Economist. “Interest rates are expected to remain low for longer, and evidence suggests that recent changes to mortgage regulations are preventing the kind of excesses they were designed to avert. Both of these developments are good news for the housing market.”

Further information can be found at http://creanews.ca/.

Home Sales Edge Higher in September

Rockies West Realty — Mon, 17 Oct 2011 16:04:00 GMT

Vancouver, BC - September 14, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the Kootenay area rose 15.4 per cent to 217 units in September compared to 188 in the same month last year. The average MLS® residential price increased 11 per cent to $285,725 last month compared to $257,413 in September 2010.

"MLS® home sales edged up 3 per cent in September compared to August on a seasonally adjusted basis," said Cameron Muir, BCREA Chief Economist. "Housing demand last month was bolstered by persistent low mortgage interest rates and a surge in employment."

"Despite a modest gain in unit sales, total active residential listings in the province remained elevated in September," added Muir. A total of 55,616 homes were listed on the MLS® in the province at the end of September.

Year-to-date, Kootenay area residential sales dollar volume decreased 8.9 per cent to $404.8 million, compared to the same period last year. Residential unit sales decreased 7.3 per cent to 1,493 units, while the average MLS® residential price dropped 1.7 per cent to $271,151 over the same period.

Read the complete report (pdf)

Canadian Home Sales Hold Steady in August

Rockies West Realty — Fri, 23 Sep 2011 18:37:00 GMT

OTTAWA - September 15, 2011 - According to statistics1 released today by The Canadian Real Estate Association (CREA), national resale housing activity in August 2011 remained stable for the second consecutive month.

Highlights:
• Sales activity was stable from July to August, but posted another big year-over-year gain reflecting weakened demand last summer.
• Year-to-date sales pulled ahead of 2010 levels for the first time this year, and remain in line with the ten-year average.
• The number of newly listed homes was also little changed from July to August.
• The national housing market stayed firmly entrenched in balanced territory.
• There were more balanced local markets in August than at any other time on record.
• The national average price posted another year-over-year gain in August, but has moderated from elevated levels earlier this year.
• Upward skewing of the national average price is diminishing due to fewer expensive sales and a declining share of national activity in Vancouver and Toronto.

“The housing market in Canada remained on a firm footing in August when compared to volatile financial markets,” said Gary Morse, CREA President. “Through their actions, homebuyers are showing that they remain confident about the stability of the Canadian housing market, and recognize that the continuation of low interest rates represents an excellent opportunity to buy their first home or trade up.”

“Once again, economic and financial market headwinds outside Canada are keeping interest rates lower for longer,” said Gregory Klump, CREA’s Chief Economist. “Those headwinds will likely persist until, and indeed after, fiscal quagmires in the U.S. and Europe are resolved. In the meantime, the Bank of Canada will have ample reason to delay raising interest rates further, which is supportive for the Canadian housing market.”

Further information can be found at http://www.crea.ca/public/news_stats/media.htm.

BC Home Sales Stable During Summer Months

Rockies West Realty — Wed, 14 Sep 2011 16:23:00 GMT

Vancouver, BC – September 14, 2011. The British Columbia Real Estate Association (BCREA)reports that Multiple Listing Service® (MLS®) Kootenay area residential unit sales in the province rose 6.2 per cent to 188 units in August compared to the same month last year. The average MLS® residential price climbed 4.4 per cent to $285,871 last month compared to August 2010.

"BC home sales edged up one per cent in August compared to July on a seasonally adjusted basis,” said Cameron Muir, BCREA Chief Economist. “Low mortgage interest rates continued to underpin housing demand in the province last month."

"Total active listings in the province remained elevated in August,” added Muir. “Most regional markets exhibited buyer’s market conditions, meaning little upward pressure on home prices."

Year-to-date, Kootenay area residential sales dollar volume declined 13.4 per cent to $342.8 million, compared to the same period last year. Residential unit sales decreased 10.3 per cent to 1.276 units, while the average MLS® residential price declined 3.5 per cent to $268,672 over the same period.

Read the complete report (pdf)

Bank of Canada Interest Rate Announcement (Sep-07-2011)

Rockies West Realty — Wed, 07 Sep 2011 16:45:00 GMT

September 7, 2011

The Bank of Canada opted to hold the Bank's target rate at 1 per cent this morning. Market volatility over the summer and incoming data indicating very weak economic growth has prompted an abrupt change in the policy stance at the Bank of Canada. Whereas just a few short weeks ago it was widely expected that interest rates were set to rise this fall, those rate hikes have been pushed out, possibly to as far as next summer. The major economies of the world are dangerously close to slipping into recession over the next 12-months. European sovereign debt combined with short-sighted stabilization policy and misguided austerity measures are threatening to destabilize world credit markets as interest rates in the peripheral states of the Eurozone spiked on default concerns. Meanwhile political acrimony in the United States is only further damaging an already deeply troubled economy.

In light of a slower global economic growth profile and heightened financial and credit market uncertainty, the Bank sees a diminished need to withdraw monetary policy stimulus. Given the current fragility of the global economy, we no longer expect the Bank of Canada to raise interest rates this year and anticipate moderate monetary tightening beyond the second quarter of 2012.

Canadian Housing Market Continues to be Strong in Face of Adversity

Rockies West Realty — Fri, 19 Aug 2011 19:28:00 GMT

Thursday, 18 August 2011 14:24 propertywire.ca newsroom

You can shake it, you can try to knock it down with the force of global economic crisis, but the Canadian housing market is proving resilient- this according to recent remarks made by BMO economists.

On the heels of the release of data suggesting that home resales rose by 12.3 % in July, year-over-year , Douglas Porter, Deputy Chief Economist, BMO Financial Group said: "Canadian housing remains surprisingly robust, thanks to still-low interest rates and solid job growth .While the strong year-over-year growth is flattered by a weak year-ago comparison - when the HST was introduced in B.C. and Ontario - sales are certainly faring better than what we expected earlier this year. While new listings have also risen recently, the backlog of unsold homes just nudged up last month, almost bang on the long-run average." "The recent financial market turmoil may temporarily weigh on activity, but sales should ultimately find support from continued exceptionally low borrowing costs."

"Today's data release is yet another sign that Canada's real estate market has great resiliency," said Laura Parsons, Mortgage Specialist, BMO Bank of Montreal. "As long as consumers continue to push demand, which remains the case, we see ongoing strength in the housing market across the country."

Canadians should be mindful though, of affordability in taking on debt- and are reminded to stress test debts at higher interest rate levels.

Leslie Penney, Vice President, Business Development, APlus Mortgage Group/Mortgage Alliance, agrees that there in an environment of affordability being created: "With the US Fed stating that they will keep rates low until 2013, it kind of ties the hands of the Bank of Canada in such a way that they cannot increase rates too much from the US. Aside from increasing prices, as interest rates go down affordability goes up. Right now we're seeing a prolonged period of affordability, and it looks like it'll be on the table for a while yet."

Canadian Home Sales Stable In July

Rockies West Realty — Wed, 17 Aug 2011 15:50:00 GMT

OTTAWA – August 16, 2011 – According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity was stable on a month-to-month basis in July following an uptick in June.

Highlights:
• Sales activity was stable from June to July, but posted a big year-over-year gain due to weakened demand in July 2010.
• Year-to-date sales continue to run in line with the ten-year average.
• The number of newly listed homes inched up by less than one per cent from June to July.
• The national housing market remains firmly entrenched in balanced territory.
• The national average price posted the largest year-over-year gain since April 2010, but was below where it stood in June.
• Upward skewing of the national average price is diminishing due to fewer expensive sales and a declining share of national activity in Vancouver and Toronto.

“The continued stability in national sales activity shows that homebuyers remain confident about the soundness of investing in a home,” said Gary Morse, CREA’s President. “Mortgage interest rates are low and keeping home affordability within reach, making it an excellent time for buyers to take advantage of very favourable financing. Prices and affordability evolve differently among local markets, so buyers and sellers should consult their local REALTOR® to better understand how the outlook for housing supply, demand, and prices is shaping up in their housing market.”

The number of months of inventory stood at 6.1 months at the end of July on a national basis, which is little changed from the end of June (6.0 months). The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is another measure of the balance between housing supply and demand. [Editor's note: the Kootenay area currently has 19 months of inventory, denoting a buyer's market with supply outstripping demand]

“Changes in the national average home price are open to being misinterpreted,” added Klump. “They often signify changes in the mix of sales activity across and within local markets, rather than a rising or falling price trend for typical homes in a specific market.”

“The national share of sales activity in some of Canada’s more expensive urban centres may retreat further from elevated levels recorded earlier this year, resulting in an easing trend for the national average home price,” he added. “Even so, the stability of Canada’s housing market will likely continue to stand in stark contrast to further expected volatility in financial markets.”

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas.

Further information can be found at http://www.crea.ca/public/news_stats/media.htm.

Major Banks Forecast Rate Hold Through Q2 2012

Rockies West Realty — Wed, 17 Aug 2011 15:44:00 GMT

Monday, 15 August 2011 13:53 - Propertywire Canada

What a difference a few weeks makes.

It was only a month ago, on the heels of the Bank of Canada’s last interest rate announcement made in July, that many had predicted a rate hike was all but certain in the fall. In fact, many even pointed to Mark Carney himself suggesting a rate hike- in the form of the language he used during the rate announcement as a signal of things to come.

Now, a few short weeks, later there has been major global financial turmoil in the form of renewed European debt crisis and US debt downgrading, and a major roller coaster ride on the international markets. The end result is we are in much the same place we were before. Many, including BMO, TD, Scotiabank and RBC, are modifying their rate forecasts to suggest that rates will hold through to 2012- to Q2 at least.

Mixed economic data, excessive volatile movement in the markets, and global uncertainty that has reached new heights have all contributed to an economic malaise, and has economists circling their wagons.

To further support this notion, the US Federal Reserve took the unprecedented move of announcing an extended hold on rates, pledging to keep them low for at least the next couple of years- in an effort to keep the economic machinery grinding in the country.

While many economists in this country expect rates to hold, very few expect rates to drop though- so it is likely going to be a case of status quo in the foreseeable future.