A tale of two real estate markets
In Canada, damn our winters, it’s always been tough to sell a home this time of year.
Not listing your house in the winter has even turned into a real estate rule of thumb. Traditionally, the market just dries up.
So you can imagine the surprise of many realtors today when news broke that Canada had its best-ever December for home sales. Best. Ever.
“Sales activity in 2009 came in like a lamb and went out like a lion,” Canadian Real Estate Association (CREA) president Dale Ripplinger told the Star.
According to the CREA’s numbers, 27,744 existing homes were sold last month, up 72 per cent from December of 2008.
Not only was the average sale price up for December ($337,410, an increase of 19 per cent) versus last year’s stats, but for the whole year as well ($320,333, an increase of 7.7 per cent from ‘08).
So, what’s all this about?
For starters, economists warn the emerging market is “getting dangerously close to bubble territory,” according to the Star.
“Cooler heads recognize that many of the recent gains reflect temporary factors that could fade by summer,” said CREA Chief Economist Gregory Klump.
Still, though, listings in December were up 4.8 per cent from 2008 – the first year-over-year gain in 2009 – and the response from Canadian home buyers is tough to dispute.
This data is interesting, of course, because things aren’t quite the same south of the border.
While Canada’s real estate market shows signs of strength in the winter months, all accounts point to the opposite in the U.S.
The country’s Pending Home Sales Index plummeted 16 per cent in November, at least – a sign surely pointing to a further drop in December.
Check out the visually dramatic dip here.
By Jason Buckland, MSN Money
Posted by: Georgia Home Inspections | Jan 16, 2022 12:28:03 AM
Really worth full...Thanks for informing us...
Posted by: Bonaventure | Jan 18, 2022 2:08:17 PM
BC's Real Estate market is one of the few markets in the world that has not been affected by the global downturn, yet.
We are always on the tail end of the cycle. US, Ontario/Quebec then west to BC/Alberta. And that downturn will come.
This nice bounce is exactly what I saw in Toronto in 1991. The market declined in 1989 - 1990 then had a bounce up, everyone started talking about the Real Estate maket was back, unfortunately it continued down until 1999.
My projection is that the BC Real estate market will start declining after the games and will continue for another 5-6 years. Aberta will fare a lot worse.
Are we there yet? Yes we are.
Posted by: MD | Jan 18, 2022 3:06:58 PM
Historically speaking, what happened to the housing market in the US has not happened in Canada yet, but, on average, what happens in the US happens in Canada 6-8 months later.
Posted by: Bonaventure | Jan 19, 2022 1:25:23 AM
The time delay is usually measured in years, typically 1 - 2 years.
Interest Rates and Housing follow the same direction.
We've had huge rate cuts in Canada, just a matter of time before housing follows.
The folks that know the heart beat of this economy are the Bankruptcy Trustees and Lenders who have customers requesting to skip their mortgage payments.
For lease signs are popping up everywhere. Almost every busy street has a business that's closing.
Don't trust the numbers, anyone can turn numbers for the desired result.
Trust the cycles.
http://arewethereyetbd.blogspot.com
Posted by: Get Real Tor | Jan 19, 2022 7:58:42 PM
WOW Incomes must have really shot up in Canada in the last 6 months. Assuming that a house should be 3x average income. So if the average house is selling for $320,000, I guess then that everyone in Canada is now either a Dr., A Realtor, or A ...?
It couldn't possibly be a bubble, think of all the new industry in Canada, Think of HUGE number of young families with 3-4 children, think of our vast export of finished goods! (After all Canada isn't still a country that still depends on raping the environment for $$ is it?).
Nope... No Bubble here, Side note; the US Economy is doing great, Greece has no budget problems, England is doing fantastic and Iceland is debt free. Long live trickle up economics !
Posted by: Home Inspection | Aug 16, 2021 4:19:11 PM
The FHA 203k loan program is the Department's primary program for the rehabilitation and repair of single family properties. Please get a home inspection.