remax fall market trends 2010 rpt

8/8/2019 REMAX Fall Market Trends 2010 RPT

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Market Trends Report Fall 2010R

Ater our years o unprecedented residential housingactivity in St. Johns, market conditions have inallyshited in avour o the buyer. Yet, 2,291 homes havechanged hands so ar this year, a fve per cent increaseover the 2,183 reported one year ago, while averageprice has climbed 16 per cent to $249,263, up rom$214,916 in 2009. More inventory has come on-streamin recent monthswith active listings currently up 23per cent to 1,857. Te city recorded the highest consumerconfdence in the country in the frst quarter o 2010,

but levels have sotened in recent months due to globaleconomic concerns. No one actor alone has impactedthe marketplaceits simply been an accumulation omany smaller itemsincluding tighter lending policies,and soter housing values in other areas o the coun-try making it more diicult or ex-pats to return toNewoundland. Days on market are slowly creeping upas a result, sitting at 70 in August. First-time buyersremain the driving orce in the market, estimated at 50per centspurring demand or product priced between$200,000 and $250,000. Listings ranging in price rom$140,000 to $190,000 are limited, presenting a chal-lenge to the many purchasers looking or aordablehousing. Move-up buyersespecially in the top endo the markethave been active in 2010, with 48 salesoccurring over the $500,000 price point. Certain com-munities continue to command top dollar, includingClovelly rails in the citys east end. Established areasare expected to remain popular with consumers, holdingtheir value even in a subdued market. An increase in

R

Newfoundland& Labrador

St. Johns

new home inventory has also had an impact on the market,creating more choice or consumers, with builders more

willing to negotiate on price point. Vacancy rates arelow, which may prompt some renters to pursue home-ownership in the uture. Condominiumswhile rep-resenting a very small percentage o total salesoer upsome o the most aordable housing product in the city.Astute buyers are now starting to enter the market, tak-ing advantage o the opportunities that exist. Economic

MARKETMARKETTRENDS REPORTTRENDS REPORTFALL 2010FALL 2010


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undamentals in St. Johns are solid, with a bright out-look expected in 2011 and 2012. Capital works projectsalone are encouraging, with $16 billion slated orHebron and Long Harbour construction proposed tobe up and running in 2012. Employment opportunitiesabound. By year-end, sales are expected to match or beslightly ahead o 2009, while average price is orecast toclimb approximately 12 per cent over last years levels.

Halifax Dartmouth

Saint John

Nova Scotia

New Brunswick

Tis up-and-coming area, built around the best modernconveniences, including shops, entertainment, restau-rants and medical services, will boast a mix o singleamily homes and condos and is expected to be a verysought-ater once it reaches completion. In antici-pation o this, resale properties on the peripheral oDartmouth Crossing have already experienced a jumpin demand. Te most popular price range throughoutthe city is currently $225,000 to $350,000. Out o thegate, September marked a notable upswing in activity.On the ront lines, calls and showings have picked up,

and the housing market is expected to remain stable inthe fnal quarter o 2010.

Te momentum in Haliax-Dartmouths residential realestate market remains quite steady, virtually on par

with year-ago levels. Year-to-date (August), sales areahead by one per cent, with 4,224 units changing hands

versus 4,186 during the same period in 2009. Averageprice has posted a healthy gain, now at $252,220 com-pared to $237,886 last yearan increase o six per cent.

Te market remains balanced, with a good selection oinventory available or sale. All segments o the marketare working in tandem, but one o the strongest hasbeen the upper end, with sales over $400,000 up 28 percent so ar this year (355 units vs. 277 units). Consumerconfdence is relatively stable, although some buyers aretaking a little more time to make their moves in recentmonths. Days on market have improved, with homestypically taking 89 days to sell vs. 92 last year. PeninsulaHaliax is experiencing strong demand, and DowntownDartmouth is posting solid sales ater a modest sot-ening one year ago. As such, the area is experiencinggood sale-to-list price ratios. Part o the upswing canbe attributed to a growing number o buyers lookingto locate centrally to avoid costs and time associated

with commutingparticularly given the current eco-nomic climate. Some o the downtown neighbour-hoods are seeing tightening inventory levels as a result.

Te most promising growth in Haliax-Dartmouth atpresent is the development at Dartmouth Crossing.

Momentum in Saint Johns real estate market has tapered,moving in line with more traditional levels o activity.

Demand has eased year-to-date, with sales o 2009space by seven per cent. Te slowdown that started in

July became more evident in August, with monthlysales down 20 per cent. While overall conditions arerelatively healthy, homebuyers are exercising more cau-tion amid rising provincial debt, postponed projects inthe oil and gas sector, and concerns regarding increasingproperty taxes. Average price, however, continues toclimbpropped up by signifcant strength in the upperendnow hovering at $180,000 versus $176,000 one

year ago. Yet, on the ront lines, realtors have startedto see price appreciation plateau, with reductions airlycommonplace as vendors adjust to new market realities.Homes that are listed at air market value continue tomove well, in spite o the act that purchasers are takingmore time to make decisions. A rebound in demandtypical o the all marketwas noted during the frsttwo weeks o September, and the undamentals exist tosupport a stable market in the coming months. First-time buyers are active, driving sales in the $130,000


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to $200,000 price range. he condominium segmenthas slowed, given reduced inventory, as conversionsthat spurred activity last year have now been mostlyabsorbed. For all residential, year-to-date active list-ings have allen 1.7 per cent to 2,871 (versus 2,920).New listings also declined 3.5 per cent (4,161 year-to-date compared with 4,310 in 2009), but an ample supplyo product remains available across all price ranges.Consumer confdence is solid in the upper end o themarket, with sales o homes priced over $350,000 up48 per cent year-over year (58 sales vs. 39). Move-upbuyers in the mid-range and retirees continue to givepause, but this segment should gear up in tandem withrecovering stock market portolios. On the whole,Saint Johns resale housing sector is expected to stabilize,

with sales alling into a more sustainable pace through

RESIDENTIAL AVERAGE PRICE BY MARKETYEAR-TO-DATE (AUGUST)

year-end 2010 and into 2011. Purchasers will beneftas prices remain in check, ater years o strong upwardmomentum, and interest rates hold steady. A numbero positive actors will support the housing sector goingorward, including new hiring in the oil and gas sectorto replace retiring workers, millions in capital spendingparticularly with the construction o the One MileInterchange and other major inrastructure projects,the opening o the new medical school, an unemploy-ment rate that remains below the national average at6.2 per cent, as well as immigration.

Market 2010 2009 % +/-

St. Johns

Halifax-Dartmouth

Saint John

Greater Montreal

London-St. Thomas

Barrie

Greater Toronto

Hamilton-Burlington

Kitchener-Waterloo

Sudbury

Ottawa

Winnipeg

Regina

Saskatoon

Edmonton

Calgary (Metro)

Greater Vancouver

Victoria

Kelowna

$249,263

$252,220

$180,000

$288,923

$227,794

$265,455

$430,055

$303,030

$300,774

$228,000

$326,666

$242,000

$265,140

$292,323

$332,789

$411,233

$667,227

$495,993

$418,598

Source: Local Real Estate Boards, RE/MAX

$214,916

$237,886

$176,000

$266,125

$212,795

$250,401

$385,978

$291,775

$280,600

$202,000

$301,072

$218,000

$246,559

$278,193

$320,289

$388,302

$574,061

$457,698

$392,370

16.0%

6.0%

2.3%

8.7%

7.0%

6.0%

11.4%

3.9%

7.2%

12.9%

8.5%

11.0%

7.5%

5.1%

3.9%

5.9%

16.2%

8.4%

6.7%


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London St. Thomas

Greater Montral

Ontario

Qubec

Sellers conditions prevail in the Greater Montral realestate market, in spite o soter home-buying activityduring the summer months. o date, 31,209 homeshave changed hands, an increase o eight per cent over the28,945 sales reported rom January to August 31, 2009.Average price in Greater Montral shows no sign o

abating, with values up nine per cent year-to-date, climb-ing rom $266,125 one year ago to $288,923 in 2010.

While new listings experienced a nominal increase osix per cent to 5,144 in August, active listings are downthree per cent rom 2009, hovering at 19,918. First-time buyers remain a orce in the market, driving saleso properties priced rom $200,000 to $350,000. Entry-level product is limited and well-priced listings tend tomove in multiple oer situations. As a result, days onmarket have declined in the single-detached, condo-minium, and plexes categories. Aordability is top omind in Greater Montral and no where is that more

evident than in the suburbs. Buyers are ocking to newsubdivisions on the outskirts, purchasing both new andresale product at a raction o what it would cost inthe city. In act, average price is approximately $60,000higher on the Island o Montralsitting at $352,240.Condominiums continue to resonate with todays pur-chasers, representing the frst step o homeownershipor many. For years, the condominium liestyle has beenpopular with empty nesters and retirees. Te concepthas now gained momentum with frst-time buyers whopreer the beneits o homeownership over renting.Condominiums, as a result, represent 30 per cent oall residential sales in the Greater Montral area so arthis year, up rom 28 per cent o the market one yearago. On the Island o Montral, that fgure climbs to47 per cent, up rom 45 per cent in 2009. Luxuryhome sales have also been brisk, with a uent purchasersdemonstrating their confdence in the uture o housing.Sales over the $1 million price point are up 20 per cent,rising to 144 between January to August o this year,

up rom 120 during the same period one year ago.Although average prices are climbing, Greater Montralremains undervalued when compared to other areas othe country. Buoyed by solid economic undamentals,Canadas second largest centre also has one o thegreatest aordability levels. Yet homeownership rates arelow due to the high percentage o renters. As such, thereis tremendous room or growth in the years ahead. Teoutlook is bright or Greater Montral, with housingsales expected to fnish the year on par or slightly below2009 levels. ight inventory levelsparticularly in the

lower end o the marketare orecast to prop up aver-age pricewith the city setting a new record or valuesby year-end 2010.

Strong sales out o the gate in 2010 have helped buoythe market in London-St. homas year-to-date. he

number o homes that have changed hands is up iveper cent (as o the end o August) compared to thesame period in 2009, with 5,985 units sold versus 5,688one year earlier. Average price reects the overall healtho the market, posting an increase o seven per cent

year-to-date ($227,794 vs. $212,795). Appreciationhas been more robust in the citys hot pockets. Activelistings are up 21.5 per cent rom 2009, bringing themarket in balance. Consumer confdence has held rela-tively frm, despite a typical summer slowdown in Julyand August, although new lending criteria has servedto knock out some buyers. Activity going orward isexpected to remain healthy and stable, which is alreadyevident in mid-September sales. New listings continueto come on-stream (up 11.2 per cent in August), andthat should hold price appreciation in check or theremainder o the year. Homes that are priced at air market

value are selling well. Tose most in demand are pricedbetween $150,000 and $225,000. First-time buyers areleading the charge. New construction is holding up,


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although some builders have suered due to the introductiono the Harmonized Sales ax (HS). Te condominiummarket has out-perormed all other orms o residentialhousing, with price appreciation up close to 10 percent year-to-date. Tis is partially due to an inux ohigher-quality product in the market and less avail-ability in the lower price points. o date, 1,132 condo-miniums have moved through MLS versus 1,069 the

year previousa solid increase o almost six per cent.Te segment continues to gain ground in Londonnow representing one in every fve homes purchased.

Aordability, in general, continues to draw buyers toLondon-St. Tomas rom across the Golden Horseshoe.

he upper end has posted an exceptional year, withsales priced over $500,000 up 55 per cent to date.

wo hundred and thirty-our homes changed handsbetween January and August, up rom 151 during thesame period in 2009. Te strength at the upper pricepoints is expected to hold through to year-end, and anew record or high-end sales is expected. A solid localeconomy, continued positive in-migration, and goodaordability will continue to support homeownershipin London-St. Tomas through 2011.

Barrie

units. Average price rose six per cent year-to-date to$265,455, propped up by greater strength in the mid-to-upper price points. Demand has tapered or entry-level homes priced rom $200,000 to $250,000, but hasramped up signiicantly rom $250,000 to $350,000plus, including the top end o the market. o date, 131sales have been reported or luxury properties, pricedover $500,000, compared to 88 in 2009a 49 per centincrease. Higher prices or new construction in the upperprice points have been a signifcant boon to the luxurysegment, as buyers realize they can get more bang or their

buck, without the wait-times, delays and unexpectedcosts common to custom building. Te condominiummarket has remained airly stable, with greater sup-ply holding prices in check year-to-date. Demand or

waterront properties has been solid throughout 2010.Overall, consumers in Barrie remain confdent in home-ownership. Te Real Estate Investment Network recentlynamed Barrie as one o the op en Place to Invest inCanada. Te city continues to boast solid economicundamentals. A number o positive developments areplanned or underway, including the addition o a GOstation at Allandaleinally connecting commuters

and tourists with the citys coveted waterront. GeorgianColleges new partnership with Laurentian University,a new training Annex at the hospital, construction othe new business park (including hotels and shopping),and the ongoing revitalization o the downtown core

will serve to attract new residents to Barrie or sometime to come, in turn supporting steady demand orresale housing into 2011 and beyond. Tis year, sales

will fnish out 2010 below levels reported in 2009, butprice should post a slight increase year-over-year.

Despite a sotening in momentum in July and August,residential housing activity remains relatively on par

with levels reported one year ago. Te citys perormancerelects healthy home-buying activity, as 1,916 unitshave changed hands so ar this yeardown 6.5 percent rom year-ago levels when 2,048 homes sold. Tepace has slowed rom the frst hal o 2010, but shouldremain steady throughout the fnal quarter. Septembersales have already posted a marked improvement overthe summer months. Multiple oers continue to occurin Barries hot pockets, particularly or homes pricedbetween $300,000 and $350,000, located close toschools and commuter access. Te market has movedinto balanced territoryrom buyers conditions ear-lier in the yearthanks to a slowdown in new listings.A good supply o homes is available or sale at 1,844

Greater Toronto AreaDespite a slowdown rom heated 2009 levels, orontosresidential real estate market remains very active year-to-date. Momentum has once again shited back intoits historical pattern (cyclical in nature), with salesront-loaded into the frst hal o the year, ollowed by atraditional summer slowdown. So ar this year, 62,930


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RESIDENTIAL UNIT SALES BY MARKETYEAR-TO-DATE (AUGUST)

Market 2010 2009 % +/-

St. Johns

Halifax-Dartmouth

Saint John

Greater Montreal

London-St. Thomas

Barrie

Greater Toronto

Hamilton-Burlington

Kitchener-Waterloo

Sudbury

Ottawa

Winnipeg

ReginaSaskatoon

Edmonton

Calgary (Metro)

Greater Vancouver

Victoria

Kelowna

2,291

4,224

1,436

31,209

5,985

1,916

62,930

9,259

4,616

1,876

10,747

8,620

2,6282,527

11,773

12,511

22,022

4,856

2,728


2,183

4,186

1,550

28,945

5,688

2,048

58,421

8,612

4,371

1,599

10,721

8,663

2,6592,696

13,694

14,317

23,158

5,521

2,523

5.0%

0.9%

-7.4%

7.8%

5.2%

-6.5%

7.7%

7.5%

5.6%

17.3%

0.2%

-0.5%

-1.2%-6.3%

-14.0%

-12.6%

-4.9%

-12.0%

8.1%

homes have changed hands, up close to eight per cent rom2009, when 58,421 sales occurred. While active listingsare up 25 per cent in August, new listings have allenone per cent to 10,488and a shortage o inventoryremains in the city s hot pockets. Buyers continue to vieor choice product, prompting multiple oers. o illustrate,one Riverdale home recently elicited an impressive 13bids when it hit the market, selling or more than askprice in a matter o days. Pent-up demand continues tobe a actor, as confrmed by the citys sale price-to-listprice ratios. Year-to-date, 14 REB districts have

maintained sale price-to-list price ratios o 100per cent or more (E01, E02, E03, E06, W01, W02,

W07, C01, C02, C03, C04, C08, C10 and C15), whilethe vast majority o those remaining posted ratiosranging rom 97 to 99 per cent. Year-to-date (or all

residential, including condos), the average sale price-to-list price ratio in Greater oronto stands at 99 percentup rom 97 per cent one year ago. Examiningdays on market provides urther evidence o a strongresale housing sector. Te average days on market standsat 25, down rom 35 in 2009 and 32 recorded during2007orontos best year ever or residential resaleactivity. As a result, prices remain on the upswing, withaverage price now just over $430,055, up 11 per centrom $385,978. Even as sales momentum moderatesinto the last our months o the year, a new record or

average price will be posted by year end. All segmentso the market continue to work in tandem. First-timebuyers are leading the charge, ollowed closely by move-uppurchasers. Homes priced between $300,000 and $500,000remain in greatest demand. Immigrationparticularly rom


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Hamilton Burlington

ater the summer lullhave also encouraged buyers toenter the market. Balanced conditions currently exist,but in some instances tend to avour the buyer. First-timepurchasers are starting to take advantage o opportunitiesin both Hamilton and Burlington. Aordable product,representing good value, can be ound in coveted ar-eas such as central Burlington, starting at $290,000 to$310,000. Inventory at the lower-price points is con-siderably tighter, with townhouse condominiums inBurlington in high demand. Starter product can alsobe ound in Hamilton East rom $180,000, Hamilton

Mountain at $250,000, and Hamilton West at $300,000.Tose who qualiy or a little more are looking at areaslike Waterdown and Northeast Burlington, where pricesstart at $360,000 or a decent-sized, entry-level home.Condominium apartments and town homes have alsoexperienced an upswing in activity, with 2010 sales inBurlington sitting at 875 (up rom 669 one year ago) andHamilton at 761 (up rom 728). Te strongest segmento the market by arwhile statistically representativeo a very small component o the overall marketis thetop end. Sales o luxury homes valued at $750,000 plusin Hamilton are up 47 per cent year over year, rising rom

36 units in 2009 to 53 units in 2010. Te same scenarioexists in Burlington where 33 homes have sold over the$1 million benchmark, up 94 per cent rom 17 one year ago.In act, Burlington just recorded its highest sale, priced at$10,350,000. A continuation o current economic unda-mentals is expected to support a healthy residential housingmarket moving orward, with unit sales and average pricesorecast to remain steady or the remainder o the year.

Chinacontinues to provide a solid boost to the realestate sector, with an increasing number o wealthy newCanadians settling in oronto. Te citys condominiummarket has ared very well in 2010, with sales o apartmentand townhomes up 14.5 per cent over 2009 levels (year-to-date August), with 20,455 units changing hands versus17,681. Condo prices, however, are poised to soten givenrising inventory levels and the number o new projectscoming on stream. Sales in orontos luxury segmenthave been exceedingly robust, with total single-amilyhomes (including condos) priced over $1 million up 52.4

per cent (2,135 units vs. 1,401 units) between January andAugust o this yearand poised to set a new record in 2010.High-end condominiums have demonstrated even greaterstrength, up 63.6 per cent year-to-date (126 units vs. 77 units).

While theres no question that sales will be more mutedthrough to year-end (in comparison to the frst hal andexceptional year-ago levels), overall, Greater oronto isexpected to round out 2010 posting a near-record per-ormance. A more moderate pace will set the tone in2011, both in sales and price appreciation.

While sales dipped during the traditionally slower summermonths, Hamilton-Burlingtons residential real estate mar-ket is gearing up or a healthy all market. Residentialsales are up seven per cent year-over-year, with 9,259homes changing hands between January and August2010, up rom 8,612 one year ago. Average price hasclimbed close to our per cent to $303,030, an increaseover the 2009 fgure o $291,775 during the same period.Listingswhile up over last yearare still lower thanpre-recession levels. Consumer confdence remains strongoverall and homeownership remains a priority inHamilton-Burlington. Interest rates are attractive ormost purchasers, despite the threat o hikes earlier inthe year. ighter lending criteria appears to have lit-tle impactgiven that fve-year closed rates hover atour per centand those that have been knocked outo the market are looking at innovative new mortgageproducts such as Rent to Own. Soter housing values

Kitchener WaterlooConsumer confdence remains buoyant in Kitchener-

Waterloo, despite a seasonal slowdown in July and August.While activity was strong out o the gate in September,the momentum is now more temperate, as some frst-time buyers have been squeezed out o the market.

ighter lending criteria will likely aect mid-rangevendors/buyers somewhat in the coming weeks and/ormonths. At the moment, purchasers continue to dem-


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marking a more moderate pace as is traditional in thesecond hal-easing pressure on prices. A near recordperormance is expected in terms o sales by year-end,coming in slightly ahead or on par with 2009, whileprices post a fve to six per cent gain.

onstrate their aith in homeownership. Year-to-date(August) sales are up close to six per cent, with 4,616properties changing hands, compared with 4,371 dur-ing the same period in 2009. he board is reportingits second best perormance on record on a year-to-date basis. Te introduction o the Harmonized Sales

ax (HS) has drawn buyers rom new constructionto the resale sector, increasing demand or newer re-sale properties. Average price continues its upwardmomentum, now hovering at $300,774 year-to-dateor all residentialan increase o seven per cent rom

$280,600 one year earlier. Overall, the market remainsbalanced, with an ample supply o inventory across theboard. Days on market are up slightly, now at 52 versus45 in 2009. Multiple oers are still occurring in hotpockets, particularly in Uptown Waterloo, where ashortage o inventory exists. Demand is also on theupswing in Downtown Kitchener, in light o ongoingrevitalization in the area. Savvy buyers and investorscontinue to seek out homes with good bones and potentialin order to renovate, breathing new lie into the area. Tecondominium liestyle is growing increasingly popularin the city, with promising new construction planned

and some currently underway. One project that recentlycame on-stream on the west side o Kitchener-Waterloowith prices ranging rom $150,000 to $400,000has already pre-sold 150 units. In Uptown Waterloo, a25-storey hotel and condo toweryet to break groundis expected to be well-received, oering a good mixo mid-range and luxury units. Currently, pressure isgreatest on units in Uptown Waterloo or DowntownKitchener, priced between $175,000 and $250,000,due to limited supply. Move-up purchasers are activein the marketplace with sales rom $250,000 to $500,000particularly strong, yet its the upper end o the marketthat has been most vibrant year-to-date, rising 145 percent (54 sales over $750,000 vs. just 22 in 2009). A robusttechnology sector which continues to hire workers locallyand attract skilled workers rom abroad, in addition to posi-tive population growth, good aordability and a diversi-fed economy will continue to be the solid underpinningssupporting housing demand into 2011. Meanwhile,sales will remain healthy throughout the fnal quarter-

Despite peaking in June, resale housing activity inSudbury remains exceptionally vibrant, posting a 17

per cent increase in sales year-to-date (August). In linewith the rest o Canada, the city marked a slowdown inJuly and Augusta return to the traditional real estatecycle. Te Harmonized Sales ax (HS) may have alsoplayed a role, as buyers experienced a temporary period oadjustment beore moving orward with the realizationthat the impact on the resale sector is relatively minimal.As a result, momentum rebounded in Septemberalbeitat a slightly more moderate paceand remains quitebusy. Year-to-date, 1,876 homes have changed hands inSudbury compared to 1,599 during the same period in2009. Te ongoing strength o the market has propped

up average price, which has sustained double-digitappreciation or several years now. Currently, averageprice hovers at $228,000, up rom $202,000 one year agoan impressive climb o close to 13 per cent. Increasedinventory is allowing purchasers more time in the home-buying process. Buyers are now viewing more homesand careully weighing their options. Consumers remainsteadast in their confdence in homeownership, withall segments working in tandem. Move-up buyershave led the charge, with sales rom $250,000 to $350,000remarkably robust304 homes sold in that price rangeto date vs. just 194 in 2009an increase o close to 55per cent. Yet, this pales in comparison to the vibrancyo the upper end, where sales o luxury homes pricedbetween $500,000 and $750,000 have experienced a

year-to-date upswing o 193 per cent (44 units vs. 15).New Sudbury and the south end, where multiple oersare occurring with some requency, remain most soughtater. A positive outlook exists or Sudburys condo-minium market, with two new towers being builtone

Sudbury


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in the downtown core and another in the citys south-east endwith starting prices ranging rom $200,000to $400,000 per unit. Te condominium liestyle is in-creasingly well received in the city, with the two towersbuilt last year now virtually sold out. Te resale marketin Sudbury is orecast to remain steady throughout thelast quarter o 2010, with activity settling into a moresustainable pace going orward. his should reducepressure on average price, which is expected to fnishthe year with a 13 to 15 per cent gain. First-time buyers

will continue to drive the $170,000 to $200,000 price

point, while move-up buyers once again uel the$250,000 to $350,000 range and the luxury segment.Solid undamentals remain in place, which will bode

well or housing into 2011not the least o which isthe contract struck between Inco and its striking work-ers, ater more than a year in limbo. Tis stability mayserve to boost demand over the coming months bythose who held o on purchasing decisions. Sudburyalso continues to experience positive in-migration and hasbeen increasingly successul at attracting and retaininguniversity graduates and skilled proessionals to its

workorce, supporting new household ormation and

the demand or homeownership.

OttawaStability has characterized Ottawas residential housingsector in 2010, with the number o homes sold slightlyahead o levels reported one year ago. Te city saw 10,747homes move through its MLS system, compared with10,721 during the same period one year earlier. Values haveposted an increase o 8.5 per cent year-to-date, with aver-age price rising to $326,666, up rom $301,072 in 2009.Active listings have been building, up 11 per cent to 6,557,bringing the market into balanced territory. Consumerconfdence remains high in Ottawa, propped up by a solidhigh-tech and government base. Demand remains strongin all segments o the market, with move-up purchasersmost active. Te introduction o the Harmonized Sales ax(HS) caused some hesitation among purchasers inboth July and August, although buyers have since moved

orward. Single-amily detached homes continue to ac-count or the lions share o activity, but inventory has held

values in check with average priceat $340,294onpar with 2009 levels. Multiple oers continue with somerequency in the citys hot pockets, including Westboro,Golden riangle and Glebe. Te condominium market hasexperienced robust growth year-over-year, with averageprice rising close to 15 per cent (now at $253,823 year-to-date vs. $221,742 in 2009). Real values have in-creased more moderately, as much o the increase canbe accounted or by an inlux o higher-end product.

Developers have responded to strong demand or unitsat all price points, with new condominium constructionoccurring throughout the city. Inventory levels are grow-ing as these new projects come to completion, whichis expected to prompt some leveling in price in 2011.

Tis is already evident in the downtown core, where condo-minium suites have experienced an upswing in dayson market. Demand is strongest or units in the citysestablished west end and downtown neighbourhoods.Despite tighter lending criteria, small investment prod-uct and properties with income potential remain highlysought-ater. Investors and end users are vying or rare

duplex properties, driving values a signifcant 21 per centahead o one year ago, while sales have remained on par(84 units in 2010 vs. 82 one year ago). Te average duplexnow commands $406,039, up rom $334,892 last year.

While activity has begun to moderate into the inalquarter, the upper end o the market has surged ahead.Sales o homes priced over $500,000 are up 42 per cent(820 units vs. 579), while million-dollar-plus sales haveclimbed 56 per cent year-over-year (42 vs. 27). Demandis not expected to all o any time soon in the top 10per cent o the market. Overall, the most active pricepoint is between $300,000 and $400,000. Aordableentry-level product will continue to be sought-ater inthe $200,000 to $250,000 range. By year-end, Ottawa

will see sales come in slightly below or on par with 2009levels, while average price pulls slightly ahead o the year-ago fgure, setting a new record or the Ottawa market.


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in 2011at a phenomenal 6.3 per cent. Optimismabounds and that enthusiasm will be reected in salesfgures in the fnal quarter o the year. Te number ohomes sold in Regina will be on par or slightly ahead o2009 levels, while average price will continue to climb,hovering at fve to seven per cent above last years fgure.

UPPER-END RESIDENTIAL SALES BY MARKETYEAR-TO-DATE (AUGUST)

Market 2010 2009 % +/- Upper-End Price Point

St. Johns

Halifax-Dartmouth

Saint John

Greater Montreal

London-St. Thomas

Barrie

Greater Toronto

Hamilton

Kitchener-Waterloo

Sudbury

Ottawa

Winnipeg

Regina

Saskatoon

Edmonton

Calgary

Greater Vancouver

Victoria

Kelowna

48

355

58

144

234

131

2,135

53

54

44

820

188

91

31

240

242

1,356

172

29


30

277

39

120

151

88

1,401

36

22

15

579

92

53

18

190

194

940

134

11

60.0%

28.2%

48.7%

20.0%

55.0%

48.9%

52.4%

47.2%

145.5%

193.3%

41.6%

104.4%

71.7%

72.2%

26.3%

24.7%

44.3%

28.4%

163.6%

$500,000

$400,000

$350,000

$1,000,000

$500,000

$500,000

$1,000,000

$750,000

$750,000

$500,000 - $750,000

$500,000

$500,000

$500,000

$750,000

$700,000

$1,000,000

$1,500,000

$1,000,000

$1,000,000

more than $305,000and $292,323 year-to-date, anincrease o fve per cent over the same period last year.Greater sales in the mid-to-upper end o the mar-ket have contributed to the upswing in housing values.

Te seasonal summer slowdown has spilled over intoSeptember. Inventory levels are climbing (up 25 percent in August). Saskatoon also lost 2,000 jobs inAugust, raising the unemployment level to 5.7 per cent.First-time buyers are driving the market, uellingactivity or homes priced between $300,000 to $350,000.Condominium product, priced between $150,000 and$250,000, has also been a popular choice with consum-ers, with one and two bedroom condominiums expe-riencing strong demand. Overall sales are down in thecondo segment, with a slight oversupply o units onthe market. Prices are expected to hold steady as some

SaskatoonAlthough economic concerns have hampered home-buying activity to some extent, year-to-date sales are justmarginally o 2009 levels in Saskatoon. o date, 2,527homes have changed hands, down rom 2,696 between

January and August o 2009. Average price, however,continues to climbup eight per cent in August to


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product comes o the market. Investors typically taketheir properties o the market i they dont sell, withmost putting their units into a rental pool. New construc-tion activity is up and holding stable. While investorshave been less active in the condominium segment thanin years past, demand or revenue properties contin-ues to be solid. Financing appears to be a non-issue asmost buyers are moving orward with their purchases.Homes are that are priced at air market value are selling,although time on market has edged up slightly. Housingsales in Saskatoon are expected to fnish the year down

modestly rom 2009 levels, while average price is ore-cast to move ahead in 2010.

EdmontonCalgary

Alberta

this segment, with a 20 per cent down payment require-ment proving to be detrimental to investment activity.One area o the market that has outperormed all othersis the upper end. Sales o homes priced in excess o$700,000 are up 26 per cent over 2009with 240 up-scale properties changing hands in 2010, compared to190 units one year ago. Fity-fve homes have sold overthe $1 million benchmark. While most Albertans acknow-ledge that the province is not out o the woods just

yet, concerns over the economy are starting to ade.Positive announcements in the oil and gas sector

should spur renewed activity in residential real estateas evidenced in the irst ew weeks o September.Despite recent hikes, interest rates remain attractive,

with a ive-year closed hovering at our per cent.he outlook or the remainder o the year is stable,with no real luctuations in either sales or price.

Te urgency in Edmontons residential housing market,prompted by tighter lending policies and the threat ohigher interest rates earlier in the year has subsided,

giving way to more stable conditions heading into thefnal quarter o 2010. Year-to-date sales have slipped14 per cent to 11,773 units, compared to 13,694 duringthe same period one year ago. Te sales-to-listing ratio,sitting at 47 per cent, is down rom 59 per cent in 2009,but up rom the 42 per cent recorded in 2008. Averageprice is holding steady, rising close to our per cent to$332,789 in 2010, approximately $12,000 higher thanone year ago. Inventory levels are up marginally overlast year, but are well-o peak levels reached in 2007and 2008. As a result, the housing market has beencharacterized as balanced, slightly avouring the buyer.First-time purchasers remain most active, driving saleso single-amily homes priced between $250,000 and$350,000. Condominiumsnow representing 34 per cento residential salescontinue to be a popular choiceor those looking or aordable options. An inux onew units in recent months has inated inventory levels,creating some downward pressure on condominiumpricing. Changes to lending criteria have also impacted

Ater our months o hesitation and month-over-monthdeclines in activity, homebuyers in Calgary are fnally

showing signs o renewed conidence. While someconcerns still exist about sluggish economic growth inCanada and the U.S., buyers who are moving orwardhave been enticed by lower prices, greater selection,avourable borrowing conditions, and a healthier out-look or the uture. Year-to-date sales o single-amilyand condominium homes in the Calgary Metro areaare down 12.6 per cent, with 12,511 properties changinghands vs. 14,317 in 2009. Aordability has kept thecondominium segment slightly more buoyant, withsales down just under 10 per cent year-to-date versusalmost 14 per cent in the single-amily home category,

while the average condominium price posted a modestour per cent gain. Average residential price in theCalgary Metro area, (single amily and condominiumscombined) however, is up a solid six per cent year-to-date to $411,233 compared with the year-ago fgureo $388,302. Tis has been pulled up by the strengtho the upper end, as well as the act that more homessold at the lower end o the spectrum one year ago.


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Although year-to-date sales have sotened rom oneyear ago, with 22,022 homes changing hands betweenJanuary and Augustdown rom 23,158 units duringthe same period one year earlieraverage price, whiledown rom peak levels reported in April, is still 16 percent ahead o 2009 levels, hovering at $667,227 (vs.$574,061 in 2009). Housing values are expected to holdsteady in the months to come as ewer new listingsdown 17.5 per cent in Augustcome on-stream andexisting resale properties are absorbed. Despite thelull in the market, consumer confdence is solid, with

reduced values drawing purchasers into the market inearly September. Conditions remain balanced, leaningslightly in avour o the buyer. Te condominium seg-ment continues to be vibrant, leading sales in August.Condominium apartments and towns now represent onein two residential sales in Vancouvertheir universalappeal attracting entry-level purchasers to aluent,experienced buyers. Te market or high-end propertiesis also robust. So ar this year, 1,356 sales occurredpriced in excess o $1.5 millioncompared to 940properties in 2009. Wealthy Chinese immigrants aredriving luxury sales, bolstered by Chinas strong econ-

omy, and this phenomenon is expected to continue into2011. Te strength o the frst hal has moderated andthe upward pressure on price has subsided. Te summermonths were dampened by the introduction o theHarmonized Sales ax (HS) and the conusion thatollowed. Purchasers are just now realizing that theHS applies to new construction onlywhich hasbeen a boon to the resale market. Demand has sinceimproved, with activity strongest in the lower pricepoints. While the number o homes sold by year-endmay be o 2009 levels, average price is poised to set anew record in the Greater Vancouver Area in 2010.

On the ront lines, realtors have been noting sotervalues with reductions relatively commonplace. Tis isreected by the citys year-to-date median sale prices.

Te median price or single amily homes in the CalgaryMetro area is now $387,000 (down six per cent rom$412,500 in 2009), while the median price or condo-miniums now stands at $258,000 (a our per cent decreaserom the year-ago fgure o $269,000). Currently, nearly7,500 listings are available or sale, with supply morethan adequate. First-time buyers are most active, drivingsales at the $300,000 to $400,000 price point. Move-up

buyers are starting to ollow suit, albeit with a measureo caution. hat growing inlux, combined with anypositive economic news, should help to kick startmomentum going orward. Te upper end remains abright spot in Calgarys real estate market, with year-to-date sales over $1 million surging 25 per cent aheado 2009 levels (242 units vs. 194 units), as buyerstake advantage o the current window o opportunity.Investors have also recognized their advantage, snap-ping up condos and hal duplexes throughout the city.Multiple oers are still occurring on quality productthat is priced precisely at air market value and in an

excellent location. Conditions are frming up in Calgaryand buyers are starting to take notice. Te market isexpected to remain steady going orward, in line withthe healthier September momentum, closing some othe gap between year-over-year sales. Ultimately, sales

will remain o 2009 fgures, but average price will levelout and post a modest gain.

Vancouver

British Columbia

While sales have slowed rom heated post-recession levels,residential home-buying activity is alive and well inGreater Vancouver. Te combination o frst-time buyers,empty nesters, and new immigrants now play a crucialrole in todays housing market, uelling demand orhomes priced rom $300,000 to $3 million and more.


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VictoriaA signifcant summer slowdown has done little to dampen

year-to-date activity in Kelownas housing market, assales up to the end o August remain eight per centahead o 2009 levels (2,728 units vs. 2,523). Yet, economicconcernsboth in Canada and south o the borderhave aected consumer confdence, with buyers growingmore cautious. Te introduction o the HarmonizedSales ax (HS) served to dampen demand or resi-dential properties, beore purchasers inally realized

there would be little impact on resale product and movedorward. As a result, activity continues to gain momentum,

with sales posting an encouraging September start.While average price appreciation has begun to moder-ateup close to two per cent in Augustthe averageresidential value remains nearly seven per cent aheado year-ago levels at $418,598. Attractive interest rates, agreat selection o product and buyers market conditionscontinue to draw purchasers into the old. Active listingsremain on a downward trend, now at 5,309 units (morethan ample), with buyers maintaining the advantage.

While some trepidation exists, those who are moving

orward seem confdent in their decisions, reected bya contraction in days on marketnow at 90 days rom97 one year ago. Homes ranging rom $400,000 to$500,000 in price are in greatest demand, with thosepriced at air market value moving well. he condo-minium market has posted a three per cent gain, withsales edging ahead o year-to-date 2009 levels (1,702

vs. 1,655). Te average price o a condominium has heldfrm as well, posting a two per cent gain to $258,000uprom $253,000 on year earlier. Te luxury home segmenthas been especially resilient. wenty-nine propertiespriced over $1 million have sold to date, up rom 11in January to August o 2009an increase o 163 percent. Overall, activity in Kelownas residential housingmarket is expected to maintain a healthy pace andremain stable through the fnal quarter and into 2011.

Ater an exceptionally strong start to the year, Victoriashousing market has returned to more normal levelso activity. Year-to-date sales hover at 4,856 units,down rom the 5,521 reported between January andAugust o 2009. Average price, bolstered by the mo-mentum earlier in the year, remains more than eightper cent higher than last year at $495,993, an increaseo close to $40,000 over the 2009 fgure. Inventory hasincreased year-over-year, although the supply o homes

listed or sale is well under levels recorded during therecession. Market conditions in Victoria are currentlybalanced, leaning slightly in avour o the buyer. Home-buying activity has subsided since the frst quarter whenpurchasers moved to secure homeownership ahead otighter lending criteria, higher interest rates, and theHarmonized Sales ax (HS). Fewer buyers overallare in the market, and o those that are able to buy,many are impacted by new calculations on residualincome on in-law suiteswhich raises the amountneeded to qualiy or a mortgage. Still, consumers remainconfdent and homes that are well-priced continue to

sell. Days on market are down rom last year, with mosthomes moving within 53 days. Te top end o the markethas been surprisingly active, with sales o million dollarplus homes up 28 per cent over one year ago. o date,172 high-end properties have changed hands, an in-crease rom 134 during the same period one year ago.

Te upswing has been attributed to soter luxury housingvalues, which have prompted savvy purchasers to takeadvantage o the opportunities that currently exist in themarketplace. Aordability remains top o mind and resalecondominiumsespecially those priced rom $250,000to $350,000and single-detached homes priced between$450,000 and $550,000are in high demand and shortsupply. Activity is expected to pick-up as the traditionalall market gets underway. Attractive interest rates andstable housing values should prompt home-buyingactivity in the fnal quarter, although volumes will palein comparison to last years renzied pace.

Kelowna


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NATIONAL CONTACTS

LOCAL CONTACTSMarket

St. JohnsNEWFOUNDLAND & LABRADOR

NOVA SCOTIA

NEW BRUNSWICK

QUBEC

ONTARIO

Contact Office Phone

Haliax Dartmouth

Saint John

London-St. TomasBarrie

Greater orontoHamilton-BurlingtonKitchener-WaterlooSudburyOttawa

709-738-7587

902-468-3400

506-634-8200

519-667-1800705-722-7100

416-699-9292905-545-1188519-885-0200705-560-5650613-288-3300

Jim Burton

Al Demings

Gordon Breau

Roger GuindonCorrie Holliday

Debra BainConrad ZuriniAdrian BaasCathy Gregorchuk

Jennier Skuce

RE/MAX Plus Realty

RE/MAX Nova

RE/MAX Proessionals

RE/MAX Centre City RealtyRE/MAX Chay

RE/MAX HallmarkRE/MAX Del MarRE/MAX win CityRE/MAX Crown RealtyRE/MAX Metro City

RE/MAX Ontario-Atlantic CanadaRE/MAX QubecRE/MAX o Western CanadaPoint Blank Communications

Christine MartysiewiczDavid Barrett (Massy-Forget Public Relations)Rhia BachynskiEva Blay/Charlene McAdam

905-542-2400514-842-2455 ext.15250-860-3628416-781-3911

MARKET TRENDSMARKET TRENDSFALL 2010FALL 2010

Greater Montral Caroline Salette RE/MAX Royal ( Jordan) 514-779-9058

MANITOBA

SASKATCHEWAN

ALBERTA

BRITISH COLUMBIA

Winnipeg

Regina

Saskatoon

EdmontonCalgary

VancouverVictoriaKelowna

204-987-9808

306-789-7666

306-242-6000

780-488-4000403-247-5171

604-273-2828250-744-3301250-717-5000

Cli King

Rob Nisbett

Larry Stewart

Bill BriggsLowell Martens

Richard LaurendeauWayne SchraderCli Shillington

RE/MAX Executive Realty

RE/MAX Crown Real Estate

RE/MAX Saskatoon

RE/MAX Real Estate (Edmonton)RE/MAX Real Estate (Mountain View)

RE/MAX WestcoastRE/MAX CamosunRE/MAX Kelowna

remax fall market trends 2010 rpt

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