Housing Market Has Peaked, National Average Price Higher Because of Vancouver Market, Royal LePage

National Real Estate News

This article appeared on CBC.ca on July 7, 2011.

Canada’s housing market has hit a peak and will likely slow in the next six months, says one of the country’s largest real estate companies, Royal LePage. “The market has seen its near-term peak in house price appreciation,” the company said in a forecast released Thursday. “A slower second half of the year is expected.”

The realtor group says home prices by the end of 2011 will be 7.7 per cent higher than they were at the end of 2010, on average. Sales volume is forecast to fall by two per cent over the same period.

High house prices are concealing early signs of a moderating market, the report said. The national average price of a detached bungalow has gained 7.5 per cent in the last 12 months to $356,625. ‘This trend cannot continue indefinitely’—Royal LePage CEO Phil Soper

Meanwhile, the price of a standard two-storey home rose 6.1 per cent to $390,163 and the price of a standard condominium rose 3.5 per cent to $238,064.

“In many of Canada’s regional markets, we saw house prices appreciate at a significantly faster rate than wages and salaries, and this trend cannot continue indefinitely,” Royal LePage CEO Phil Soper said.

Red hot Vancouver market bucks trend

There are wide regional variances within those numbers. The Canadian Real Estate Association has noted repeatedly in recent months that the national average price is being skewed higher by a red-hot Vancouver market, for example.

The Vancouver market continues its rally, Royal LePage says, with the average price of detached bungalows and standard two-storey homes both over $1 million and seeing double digit year-over-year gains.

It is interesting to note, however, that the average price for a standard Vancouver condominium saw a very modest increase of 2.5 per cent over the past year.

Soper noted that Vancouver — specifically certain neighbourhoods in the lower mainland of British Columbia — “remains an anomaly, as investment from outside of the country continues to support higher price levels.”

Other regions see gains

Most regions are still seeing strong gains, but home prices in Calgary declined modestly as the market continues to adjust following the Alberta housing boom experienced in the middle of the previous decade, the report noted.

The Atlantic provinces are still seeing gains, although smaller than the ones seen in recent quarters. And additional inventory coming on to the market in the Montreal area has provided home buyers with more choice and opportunities for negotiation, the report said.

Toronto’s seller’s market witnessed strong year-over-year price appreciation, with price gains ranging from 4.7 per cent to 6.1 for the housing types surveyed.

The company is predicted flat price gains in the fourth quarter of 2011 as the year-ago period was unusually strong.

The report makes no mention of the current mortgage rate environment. but it’s clear that borrowing costs are set to rise — something that could put pressure on home prices. Earlier this week, a couple of major banks raised their posted five-year fixed mortgage rates by .15 percentage points to 5.54 per cent.

The Bank of Canada is expected to resume raising its key overnight lending rate later this year. That will cause the interest rate for variable mortgages to rise.

With files from the Canadian Press

Link

Featured Property: 506 Garibaldi Drive, Upper Sahali, Kamloops, B.C. $389,000

Sahali

506 Garibaldi Dr Upper Sahali Kamloops Real Estate

This upper Sahali rancher with open floor plan has had many updates in the past few years which include; new flooring, kitchen (both up and down), paint, light fixtures, some internal doors, bathroom, furnace 7 years old, appliances, landscaping and more. The inlaw suite has a separate entrance and generates $1000/month in rent. Garage was converted into master suite with sliding glass doors to yard. One bedroom and den basement suite with large living space and separate laundry. Beautiful spacious deck that overlooks large, flat, private yard. Master suite could also be used as a rec room or family room. This home shows beautifully inside and out- owner is an interior designer. All appliances included (2x fridge, 2x stove, 2x washer/dryer, dishwasher). Great location close to school, transportation and a short drive to all shopping.

To view all homes for sale in Kamloops click here.

Sun Peaks Marks One Year as a Municipality

Kamloops Real Estate News

This article appeared in the Kamloops This Week on June 28, 2011 and was written by Jeremy Deutsch.

Sun Peaks Village, Kamloops, BCIt could be said the first year of the Sun Peaks municipality has been more like a cross-country jaunt than a downhill run.

That’s at least how Sun Peaks Mayor Al Raine might describe the year it’s been for the province’s newest municipality. “Unfortunately, people have high expectations that everything is going to happen in a hurry,” said Raine, who added the resort’s politicians have moved “conservatively” and “cautiously.” “It’s a little slower than I’d hoped for.”

It was a history-making day on June 28, 2010, as Sun Peaks officially became the first mountain resort in B.C. and Canada.

About 200 people, including residents and dignitaries, were at the Delta Sun Peaks Resort Hotel last year to watch the resort’s first council and mayor be sworn into office.

Though there were high hopes and expectations at last year’s ceremony, Raine admits the pace of progress for the municipality has been slower than he expected.

The newly formed resort municipality has been busy getting an administration in place and taking over services that were once the responsibility of Thompson-Nicola Regional District.

Sun Peaks, which is separate from Sun Peaks Resort Corporation, although a member of the corporation sits on the village’s council, is responsible for building inspection, emergency services and bylaws, while it will work with the TNRD on planning — specifically completing its official community plan.

The village also contracted out services to hire a bylaw enforcement officer, in part to deal with noise complaints. During the winter months, the municipality received 20 noise complaints.

The municipality is also in good financial shape heading into its second year, carrying a surplus in the first six months and putting $400,000 aside for future road improvements, firefighting equipment and the construction of recreation facilities. “There’s a very positive attitude toward the municipality,” Raine said. But, it hasn’t been all smooth powder for the mountain resort.

A funding application by the municipality for a health- and emergency-service centre was unsuccessful.

Raine noted doctors work part-time out of a small trailer, which he argued doesn’t present the most professional image for a world-class resort. He also hopes the municipality will secure a permanent ambulance based out of the community in the future, which would drop the time it takes to get patients to Royal Inland Hospital by half.

Sun Peaks is also working on another ongoing issue that involves the existence of the municipality itself. Earlier this year, the B.C. Supreme Court ruled the provincial government breached its constitutional duty to consult with the Adams Lake Indian Band with respect to the incorporation of Sun Peaks as a resort municipality. But, the court did not set aside the village’s incorporation, and instead ordered the province to engage in further consultation withe band.

At the time, Raine suggested that if the three sides just started meeting on a regular basis there would be some “very fruitful outcomes. The mayor appears to be backing up his words, as the municipality and the band are in the process of establishing a community-to-community forum. Raine hopes to improve the conversation and dialogue with bands around Sun Peaks.

In the meantime, the resort continues to post positive numbers at a time when tourism in the province continues to struggle. The number of room nights at the resort grew by 3.5 per cent last year, which reflected an increase in the summer guests and a slight drop in the winter.

Australia remains the leading oversees destination for Sun Peaks, while visitors from B.C. represent 59 per cent of the resort’s winter market. That’s also an increase over the past few years.

Link

1 … 187 188 189 190 191 … 229