Housing Market

[Spokes]

Waterloo Region housing market on the road to recovery

November 10, 2009
By Chuck Howitt, Record staff

KITCHENER – Fuelled by the economic recovery, housing starts are expected to grow by 12 per cent in Waterloo Region next year, the Canada Mortgage and Housing Corp. said today.

But if builders and developers are expecting a return to the good old days of rampant suburban housing development, they better think again, warned Erica McLerie, a senior market analyst with the housing agency.

Waterloo Region’s official plan, the growing importance of a regional transit corridor and the aging baby boomer population will spark demand for higher-density housing and sustainable communities with a mix of services within easy reach, McLerie told a housing outlook conference organized by the agency.

Rather than being obstacles for the housing industry, these trends offer opportunities for builders willing to change with the times, she said.

“Aging baby boomers will be a force,” she told the audience, which included. In the next 10 years, the region’s population is expected to grow by 63,000, she said. Of this total, 38,000 will be in the 55-74 age group. This group will require a mix of housing, ranging from single-detached homes and townhouses to condos and apartments, close to services such as shopping, transit and health care, McLerie noted.

As for the short-term housing market, starts are expected to grow to 2,170 in the region next year, up from 1,930 this year. Dragged down by the recession, housing starts are expected to fall by 27 per cent this year compared to 2008 when 2,634 units were launched.

In the Guelph area, housing starts are expected to grow by 16 per cent next year after a sharp drop of 58 per cent this year.

With interest rates remaining low, owning a home is the preferred option for most residents. Rental housing will make up only a fraction of the starts in 2010 in Waterloo Region, with Guelph being even worse off, McLerie said.

The supply of registered building lots is tight, she said, with Kitchener having by far the greatest inventory at around 1,800 lots. Both Waterloo and Cambridge have fewer than 500 lots.

New housing prices in the region will remain flat at about $325,000 for single-detached homes, the corporation said.

Housing growth in the region and Guelph is about average compared to other areas of the province, McLerie noted.

In the resale market, sales in the region are expect to drop by 1.6 per cent this year and fall another 3.2 per cent next year, said Edgard Navarrete, a marketing analyst with the agency. Prices have risen by 0.3 per cent this year and will increase by 2.9 per cent next year.

Low mortgage rates are luring more first-time buyers into the market, he said.

Despite the loss of jobs in the region due to the economic downturn, the diversified economy is attracting workers from outside the area, which is good news for housing, Navarette said. The ratio of workers to the total population is 56 per cent in Guelph and 53.1 per cent in Waterloo Region, higher than any other urban area in the province, he noted.

Single-detached homes cost about $25,000 more in Waterloo than in Kitchener, he said, with west Waterloo having the highest prices.

In a presentation on building vibrant downtowns in medium-sized cities, Jeff Lederer, general manager of the School of Architecture in Cambridge, said successful core areas are often built around attractive natural features such as a river or mountain, and have a well-preserved historical district and a strong institutional presence in the form of government buildings and universities or colleges.

They also have a mixture of housing and an abundance of special events, pedestrian activity and tourist attractions, he noted.

Cities should not ignore areas such as alleyways which can be decorated to look quite attractive, Lederer said. Public art can also be a focal point. He and a group of planners toured vibrant American cities in 2005 and 2006 and found a fountain created out of a storm water management system in Chattanooga, Tenn., and an urban art trail spearheaded by two elderly women in Asheville, N.C.

You don’t need to be a politician to lead downtown revitalization, he said. Often it is championed by ordinary citizens.

chowitt@therecord.com

http://news.therecord.com/article/627013



Apartments still scarce in Waterloo

December 21, 2009
By Kevin Swayze, Record staff

WATERLOO REGION — The city of Waterloo continues to have one of the lowest apartment vacancy rates in the country, thanks to a crush of high-tech workers and university students looking for short-term housing.

Yet across the rest of Waterloo Region, apartment vacancy rates are climbing, due to job losses, poor job prospects for young people moving away from parents, and low mortgage rates encouraging renters to buy houses.

“It is very odd,” said Deb Schlichter, director at Waterloo Regional Housing.

The one-per-cent vacancy rate in Waterloo also means that city has the highest average rents in the region, according to the fall 2009 rental market report complied by Canada Mortgage and Housing. The data looks at the Kitchener census area, including all of Waterloo Region except Wilmot and Wellesley townships.

For example, two-bedroom units go for $937 a month in Waterloo, compared with $835 in Kitchener, $850 in Cambridge and $709 in Woolwich and North Dumfries townships.

Nationally, the highest average rent for a two-bedroom apartment was $1,169 in Calgary, where the vacancy rate was 5.3 per cent. Toronto was second at $1,099, with a 3.1 per cent vacancy rate. The lowest nationally was $518 in Saguenay, Que., with a vacancy rate of 1.5 per cent.

“It’s more than the availability; it’s the cost of it,” said Trudy Beaulne, executive director of Kitchener-Waterloo Social Planning council.

High-tech workers and student housing are king in the city of Waterloo, creating a challenge for low-income families looking for options to live there. They may have to move to Kitchener to find an affordable apartment, she said.

“It’s different housing stock, too. If you’ve got a pretty high income, you have more choice . . . it’s not like if you’re on Ontario Works (social assistance).”

Regional housing manages 9,000 subsidized apartments across the region. The waiting list for the units has held steady for years, at 3,000 to 3,500 families.

Schlichter isn’t sure how much weight to give the waiting list, since she suspects many don’t bother to sign up for what’s going to be a years-long wait for a key to a “community housing” unit. People needing an apartment instead get what they can now from private landlords, because they need it now.

Maybe people who lost their jobs over the past year haven’t run out of Employment Insurance coverage yet, Schlichter said.

“We do know social assistance caseloads have been growing … there may be some potential down the road that this list will grow.”

When the recession hit a year ago, it was a “positive thing” for landlords across the district, said Glenn Trachsel, president of the 600-member Waterloo Region Apartment Management Association.

Landlords saw tenants who were thinking of moving and taking on a mortgage change their minds and keep renting, he said.

Over the last year, the average vacancy rate across the region — even with the city of Waterloo drop — climbed to 3.3 per cent from 1.8 per cent.

Trachsel, a realtor with Team Realty in Kitchener, isn’t convinced the growing vacancy rates in Kitchener (3.4 per cent), Cambridge (5.6) and the townships (4.5) are spurred on by low interest rates pushing people into home buying.

Trachsel saw tenants move out because they lost their jobs. Maybe they’re doubling up with friends in other apartments, or moving in with relatives.

“I’m trying to figure out why vacancies have gone up. They’re not going back to buying houses.”

Waterloo’s surge in high-tech workers is distorting the rental market as they survey their new city, Trachsel said.

“They typically move to the area, rent for a year or two before they buy… you have a market where if they were in another area, they just buy a house.”

Kitchener is more of a balanced rental market, but there’s an “upscale pocket” growing downtown around the new satellite university. “It kind of mirrors Waterloo.”

In Cambridge, tenants are eager to rent within a few minutes drive of Highway 401, because it makes for an easy commute to work in Mississauga. Move away from the freeway and the rental market is soft, Traschel said.

A one-per-cent vacancy rate in Waterloo doesn’t surprise Mike Belanger, director of residential services for students attending Wilfrid Laurier University.

That’s the usual fall vacancy rate for apartments to serve the 50,000 post-secondary students in Waterloo. The vacancy rate jumps to about eight per cent in mid-winter as students take out-of-town work placements. In summer, when school’s out, the student vacancy rate bounces to 30 per cent.

In the early 1980s, Belanger remembers student housing vacancy rates as low at 0.5 per cent. That student housing crisis eased long ago — just look at all the student lodging built along Columbia Street — but Belanger wonders if another crunch is looming.

As Laurier and the University of Waterloo continue to expand to help fight the recession, bank financing for new student housing projects has “dried up,” Belanger said.

“There is some anxiety if the universities grow and the private accommodation does not.”

kswayze@therecord.com

http://news.therecord.com/article/647772

[Spokes]

Housing ended recession year on a high note

January 07, 2010
By Rose Simone, Record staff

WATERLOO — It started out as a year of doom and gloom, but 2009 turned into a banner year for the housing market in Waterloo Region.

At this time last year, with dour news about “the Great Recession,” and snowstorms pummeling the region, house sales were in a deep freeze. Yet by the time 2009 ended, the situation for resale homes had dramatically turned around.

The number of houses that sold hit a near record, while selling prices remained fairly stable.

A total 9,131 already-existing homes were sold across Waterloo Region by agents of the Kitchener-Waterloo and Cambridge real estate boards, a 5.8 per cent increase compared to the 8,635 resale homes that were sold in 2008.

That made it the second best year for the volume of sales across the region, topped only by the 2007 record when 9,799 homes were sold.

“Most people thought it was going to be a down year, so it really was surprising . . . it really shows the resilience of our market,” said Ted Scharf, president of the Kitchener-Waterloo Real Estate Board.

In Kitchener-Waterloo and area, 6,467 homes sold in 2009, a 5.7 per cent increase over the 6,114 homes that had sold in 2008. In Cambridge, 2,672 residential units sold, a 5.9 per cent increase compared to the 2,521 units that sold in 2008.

In Cambridge, the average sale price of $258,415 showed a slight improvement over the average sale price of $256,044 in 2008.

“The housing market is holding its own,” said Bob Peace, president of the Real Estate Board of Cambridge Inc.

In the Kitchener-Waterloo area, the average selling price was down slightly, at $255,105 compared to $256,807 in 2008. However, this was attributed to the fact of more demand for homes at the lower price end, which brings down the average.

The median price, which reflects the price in the middle of the upper and lower ends of the market, was up in the Kitchener-Waterloo area, to $243,750 last year compared to $235,750 in 2008.

The majority of sales were in the $200,000 to $250,000 price range, Scharf said.

“A lot of people who wanted to get into starter homes did it in 2009, because prices were good, the interest rates were low and people who were buying had some job security. So it was a good time to buy,” Scharf said.

The low interest rates lifted the housing market in 2009, Peace added. “That really kept the market going at a good, steady pace.”

But Peace said it also helps that Waterloo Region has a diverse economy, with companies that are expanding and adding workers.

Scharf said the recent Toyota announcement that it will add 800 workers for a second shift at its plant in Woodstock is an example of the type of economic news that lifts the confidence of buyers here.

“I think employment is even more important than interest rates,” Scharf said. “If you don’t have a job, then it won’t matter what the interest rates are.”

Scharf said the 2009 got off to a slow start, but then consumers seemed to regain their confidence.

In December, the real estate agents in both Kitchener-Waterloo and Cambridge saw a big turn-around from the same month the previous year.

There were 356 residential units that sold in Kitchener-Waterloo last month, which was a record for the month of December, and a 60 per cent increase from the same month in 2008. In Cambridge, during December, 150 homes sold, also a nearly 60 per cent increase from the same month in 2008.

Scharf said an improvement was to be expected when compared to the dismal sales at the end of 2008 when the global economic downturn was hitting everyone hard.

But last month’s sales also augur well for the start of the housing market in this new year, he added. “I think it is indicative of what the future holds for our late winter and spring market. I think it will be a strong market,” Scharf said.

Peace said the December sales reflect the extent to which the demand for housing has recovered. He too said it bodes well for the future.

“I think this will be a very good year,” Peace added. “We are doing better than a lot of places.”

rsimone@therecord.com

http://news.therecord.com/Business/article/650396

[Spokes]

Great news that the housing market was strong this year. Too bad we didn't see any condo start ups take advantage of it.

[Spokes]

Dear Condo Developers,
The housing market is strong, it never took the dive the market in the U.S. did. Please open your sales offices NOW!!!
Thanks

House sales off to strong start in 2010

February 03, 2010
Record staff

WATERLOO REGION – Waterloo Region’s housing market shows no signs of slowing down.

Home sales in January maintained their momentum from last year’s strong finish, with both of the region’s real estate boards reporting strong sales.

The Kitchener-Waterloo Real Estate Board set a record for the month of January. It recorded 416 sales, 10 more than the previous high, set in 2006.

That’s a 64-per-cent increase over the 254 homes sold in January 2009, when the region, like most of the country, was staggered by a crippling downturn in the economy.

The Real Estate Board of Cambridge registered 140 sales last month, an increase of 32 per cent from the 106 homes sold in January 2009.

The large year-over-year increase shows just how much consumer confidence has bounced back from a year ago when the global financial crisis was giving everyone the jitters, said Bob Peace, president of the Cambridge board.

The strong sales in a traditionally slow month is encouraging, said Ted Scharf, president of the Kitchener-Waterloo board.

“These results show that there is definitely demand in the market and the traditional mindset of waiting until spring just doesn’t seem to be as strong,” he said today in a news release.

Low interest rates are fueling the house-buying spree, Scharf said. “So long as there are no sudden increases or threats to the rates, it will continue to be a driving factor in the coming months.”

The Kitchener-Waterloo board noted that January’s sales were strong across all types of housing and included 285 single-detached homes (up 66.7 per cent from January 2009), 73 condo units, 28 townhouses and 28 semi-detached homes.

Demand was particularly strong at the top end of the market, with 54 homes selling for more than $400,000 in Kitchener and Waterloo, 32 more than in January 2009.

The surge in higher price ranges helped push up the average price in Kitchener and Waterloo 12.3 per cent to $278,825, compared to a year earlier. Single-detached homes sold for an average of $316,913, an increase of 13.6 per cent from a year earlier.

In Cambridge, the average price of all the homes that changed hands last month jumped 16.3 per cent to $278,527.

The Cambridge board noted that the number of new listings fell 11 per cent in January compared to the same month a year earlier.
http://news.therecord.com/Business/article/666766

[Duke-of-Waterloo]

Woolwich bucks the trend during downturn in housing construction

By: Katie Edmonds | OBSERVER XTRA | Saturday, January 21, 2010

The housing market mayhem in the United States last year was not reflected in this country, as seen in figures released last week by Statistics Canada. And while Ontario saw some slowing in new home starts, it was pretty much business as usual in Woolwich.

“There was no recession in Woolwich Township,” said chief building official Peter Vanderbeek, pointing to the notable increase in the number of residential building construction projects begun, in contrast to the lowered numbers throughout the rest of Ontario.

The province did see a slowdown in construction, but the numbers started to pick up as the year ended.

“As expected, a slowing economy, slightly higher housing inventories and tighter credit market conditions dampened residential construction activity across the province in 2009,” said Ted Tsiakopoulos, an economist with Canada Mortgage and Housing Corporation’s Ontario regional office.

Ontario residential home starts moderated in 2009 although they began to recover during the second half of the year. Home starts declined to an estimated 50,500 units in 2009, from 75,076 in 2008. Residential construction for the year was down largely due to weaker activity in the multi-family home segment, which includes townhome and apartment dwellings. Meanwhile, construction of new detached housing did post declines last year but much less so relative to other housing types. Not surprisingly, weaker starts activity occurred in communities where higher density development is most prominent, including Toronto and Hamilton.

Statistics Canada reported that in the Kitchener area, which includes the townships, construction began on 2,299 homes in 2009, down from the 2,634 units started in 2008. Starts were lower for all housing types in 2009. Single-detached starts decreased to 1,162 units in 2009, down from the 1,446 homes started in 2008.

But for Woolwich, results showed just the opposite effect.

“When we were looking ahead last year, I budgeted for the same amount as in 2008 but we actually exceeded that,” noted Vanderbeek.

Although the number of available lots in Elmira is not nearly as high as it has been in previous years, he predicts that Breslau will continue to boom with new lots from both Empire Communities and Thomasfield Homes drawing large numbers of people to the township.

The number of new total residential dwelling units in the township jumped to 265 from 247 between 2008 and 2009, an increase of 6.79 per cent, while the rest of the province saw a decrease of approximately 33 per cent during the same period. The number of total permits issued in Woolwich was an even greater increase of 9.9 per cent, and the total value of construction projects in the township leapt to $83,279,139 from $74,021,543, an 11.12 per cent difference.

Vanderbeek said the number of houses to be built in Elmira will depend on how many of the applications for subdivisions which are currently under review get approved, but he noted that if this year is anything like last year, he is not worried.

“It’s like the recession did not even exist in this area in terms of housing.”

http://observerxtra.com/2/news/woolwich-bucks-the-trend-during-downturn-in-housing-construction/

[UrbanWaterloo]

Jim Flaherty tightens mortgage rules
Finance minister unveils new mortgage rules needed to prevent ‘negative trends' from developing
Jeremy Torobin and Bill Curry
Tuesday, February 16, 2010
http://www.globeinvestor.com/servlet...69432/GIStory/

Ottawa — Finance Minister Jim Flaherty Tuesday announced tighter lending standards for mortgages, saying that while the housing market is healthy and there's no solid evidence of a bubble, the moves are needed to “help prevent negative trends from developing.”

Under the new rules, all borrowers will need to meet standards for five-year fixed-rate mortgages regardless of whether they're seeking a loan with a lower rate and shorter term.

Also, the government is lowering the maximum amount Canadians can withdraw when refinancing to 90 per cent of the value of their homes, from the current 95 per cent, and requiring a 20 per cent down payment for government-backed mortgage insurance on “speculative” investment properties.

“There are no definitive signs of a housing bubble,” Mr. Flaherty said. “We think we're being proactive in the three steps we're taking today.”

Scotia Capital economist Derek Holt said the tighter criteria for mortgages could cause the housing market to ``really heat up” over the next few months as buyers try to get approved before the stricter rules come into force.

``This all leads to short-term price scrambling,” Mr. Holt said in an interview, noting that the Harmonized Sales Tax due to take effect in Ontario and British Columbia on July 1 is already causing some buyers to rush into the market in a bid to close deals in advance. ``It could really heat up in the near term and then cool off in the back end of the year. With the HST in Ontario and B.C. and these changes, they have dramatically altered the home-buying decisions of Canadians.”

The three new changes to the mortgage insurance guarantee rules are intended to take effect on April 19, according to a statement.
Mr. Flaherty stressed that some lenders are already applying stricter standards when approving buyers for mortgages, but said today's announcement was needed to ensure others start doing so.

``I prefer not to give direction to lending institutions about what their practices ought to be and what their standards ought to be,” he said. ``We are now providing direction in what they ought to do.''

In reference to the tightening of refinancing rules, Mr. Flaherty said this will encourage Canadians to build equity in their homes instead of tapping that equity as a source of cash.

“This will discourage the kind of mortgage refinancing that can create unsustainable debt levels as interest rates go up,” he said. ``We are encouraging people to build equity over time, using home ownership as an effective way to save, rather than as a vehicle for quick cash.”

In his comments on the third measure, Mr. Flaherty said the hike in minimum down payments for such properties will help keep prices from climbing too high.

“We will require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. This will discourage the kind of reckless real estate speculation that can drive prices to unsustainable levels which does not serve Canadian home buyers,” he said.

“We're not aiming here at investment properties,” Mr. Flaherty added. “What we're getting at is the speculation in multiple-condo markets, in particular.”

A backgrounder circulated by Finance Department officials explained that the change won't apply to borrowers who buy residential properties where they plan to live but which also include some rental units.

``The problem is this multiple-unit, non-owner-occupied situation,” he said.

At the same time, Mr. Flaherty acknowledged that even though most lenders already ask mortgage-seekers if they plan to live in the home they're trying to buy, they're not always sure they get an accurate response. The new rule is ``not easy to administer but it's not impossible either,” he said.

The Canadian Real Estate Association said in a report last week that low interest rates will push home resales and prices to records this year.

The new rules are meant to ``have some stabilizing effect” and encourage ``moderation” in the market, Mr. Flaherty said. When asked if that means the moves will push home prices lower, the minister said the main purpose was to curb the type of ``excesses” that helped fuel the subprime-mortgage meltdown in the United States.

``You can see people starting to use the equity in their homes as if it were cash and the assumption that took hold that housing prices only ever go up,” Mr. Flaherty said, adding the government is worried about ``the tendency for those who have limited credit to speculate in the market,” because ``they're the first ones to get into trouble in the market when interest rates go up.''

The moves send an appropriate message to borrowers about debt, said CIBC economist Avery Shenfeld. While the rules don't take effect yet, Mr. Shenfeld suggested that the banks might begin adopting them earlier. And they could take a little bit of steam out of the market, he said.

“It may be part of a cooling that we'll see in house price appreciation,” he said. “We were pushing into house prices that were running a bit ahead of rental rates and income fundamentals – not to the point that we feared a huge house price crash, but to the point that it might be time to head-off such risks.”

With files from Steve Ladurantaye and Tara Perkins in Toronto

[UrbanWaterloo]

Low inventory levels set stage for heated Spring market in most major Canadian centres, says RE/MAX
Active listings down in 81 per cent of markets in January
Feb. 24, 2010
http://www.remax-oa.com/MediaNewsroo...aspx?ItemID=56

Mississauga, ON (February 24, 2010) – Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.

The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.

“There have never been so many motivating factors in play at once,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “We’re in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies.”

Markets experiencing the tightest inventory levels include Toronto (- 41 per cent); Kitchener-Waterloo (-33 per cent); Ottawa (- 30 per cent); Victoria (- 30 per cent); Greater Vancouver (- 27 per cent); Halifax-Dartmouth (- 19 per cent); London-St. Thomas (- 18 per cent); Regina (- 16 per cent); and Winnipeg (- 13 per cent). Conditions were still balanced, but starting to tighten in Calgary, Edmonton and Saskatoon, particularly in the single-family detached category.

The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121 per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent), London-St. Thomas (55 per cent) and Calgary (47 per cent). Western Canadian cities dominated the list of centres with the highest increases in price appreciation. These included Victoria at 25.5 per cent, Kelowna at 22 per cent, Greater Vancouver at 19.5 per cent, and Winnipeg at 17 per cent. St. John’s (23 per cent) and Toronto (19 per cent) were also among the frontrunners for price growth.

“Affordability is the catalyst for the vast majority of purchasers in today’s housing market,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “While homeownership is still within reach in many major centres, levels are slipping. There is a growing sense, on both sides of the fence, that the time to act is now.”

While buyers are taking advantage of favourable conditions, sellers too are reaping the rewards. Competing bids are a factor in the marketplace once again, with well-priced listings—especially at the entry-level price point—experiencing multiple offers. Properties priced at fair-market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream.

“The level of frustration is growing, as pent-up demand builds,” says Polzler. “For every successful offer, there are those that will walk away empty-handed. They’re thrust back into the buyer pool and the process starts all over again. Some buyers are upping the ante, while others are considering alternate housing options. Still, purchasers remain cautious in their bids, with most careful not to max out debt service ratios.”

Recent revisions to lending criteria will add fuel to the fire in the short term. Buyers considering a variable rate mortgage will step up their plans for homeownership in the next month or so just to get in under the wire. In the longer term, buyers will adjust, but move forward. Compromise has long been a reality—particularly in the larger centres. This simply means they may go smaller or further in their pursuits.

“It’s been a 180 degree turnaround from this time last year,” says Ash. “It’s clear that real estate from coast to coast has roared back to life and markets are once again firing on all cylinders. The vast majority of markets are now recovered and fully-evolved, with all segments working in tandem. At the luxury price point, activity was brisk in seventy-three per cent of centres surveyed, with momentum ramping up in the remainder. Opportunity exists in some areas, but the question is for how much longer? ”

RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country. The RE/MAX franchise network, now in its 37th year, is a global real estate system operating in more than 70 countries. Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management. For more information, visit: www.remax.ca.


REMAX Market Trends 2010 - Full Report
http://www.remax-oa.com/MediaNewsroo...ds2010_RPT.pdf

Kitchener – Waterloo
Consumer confidence is taking hold once again in Kitchener-Waterloo, with sales posting strong gains in January. Three hundred and three homes sold during the first month of 2010, versus just 217 one year ago, and higher than December 2009’s strong showing of 258 sales. The market is quite active at all levels. First-time buyers remain the driving force, with the lion’s share of activity occurring under the $250,000 price point. Momentum is ramping up from $250,000 to $350,000, as move-up buyers step up demand. There is a shortage of supply across the board, with active listing down a substantial 33 per cent. Multiple offers are now commonplace—evident at all levels of the market—and properties are selling more quickly. Buyers are starting to feel frustrated in their pursuits. Sought-after areas such as Stanley Park, Breithaupt Park, Beechwood and Eastbridge have felt the greatest pinch. Pent-up demand has been a factor, with last year’s fence-sitters finally confident enough to make their moves. Boosting demand has also been those eager to buy before the Harmonized Sales Tax (HST) and interest rate hikes take effect later in the year. HST has been a growing consideration. Some purchasers are now looking to freeholds and semidetached homes versus the previously favoured condominium townhomes when it comes to affordability, given that condo fees are set to rise. Average price is on the upswing, increasing a considerable 13 per cent to $272,000 in January, up from $241,000 at the same time one year ago. Solid activity in the luxury segment has skewed average price slightly upward. Thirteen sales over $500,000—higher than average for January—were recorded versus just four last year. Activity is expected to remain brisk this Spring and throughout 2010. Listings —or lack of thereof—will continue to be the greatest variable affecting market conditions in the coming weeks and months.


Video
http://www.remax-oa.com/MediaNewsroo...ends_2010.aspx

[UrbanWaterloo]

Canada Mortgage and Housing Corporation: February Housing Starts Higher in Kitchener
http://www.marketwire.com/press-rele...er-1127937.htm

TORONTO, ONTARIO--(Marketwire - March 8, 2010) - Canada Mortgage and Housing Corporation (CMHC) released February preliminary housing starts data for the Kitchener Census Metropolitan Area1 (CMA) today. Construction began on 168 homes, up from the 103 units started in the same month last year. This was the fifth consecutive month with starts higher than a year ago.

To view the graph associated with this Press Release, please visit the following link: http://media3.marketwire.com/docs/KIT0308.pdf



Foundations were poured for 92 single-detached homes in February, up from the 45 units started in February 2009. Townhome starts decreased to 18 units, down from 37 units last February. There were 24 rental apartment units started in February, up from the 19 apartment starts a year ago.. All municipalities in the CMA, except Cambridge, recorded higher starts in February.

"New home sales outpaced starts through most of 2009 which will support starts activity in 2010," said Edgard Navarrete, Market Analyst for the Kitchener CMA. "A tight resale home market and low interest rates have encouraged home buyers to consider the new home market. Any increase in demand for new homes must be met by new construction, as new home inventories are low," added Navarrete.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. 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 vital decisions.

HOUSING STARTS - KITCHENER CMA
YEAR-OVER-YEAR COMPARISON - MONTH OF FEBRUARY AND YEAR-TO-DATE

[UrbanWaterloo]

Canada’s housing affordability slips slightly: RBC Economics
http://www.rbc.com/newsroom/2010/0315-housing.html

TORONTO, March 15, 2010 — Homeownership costs in Canada increased slightly across all housing segments in the closing months of 2009, as rising prices made it more expensive to own a home, according to the latest housing report released today by RBC Economics Research.

"While home affordability deteriorated at the national level in the fourth quarter of 2009, the change was relatively modest overall," said Robert Hogue, senior economist, RBC. "The effect of higher prices was largely mitigated by a small decline in mortgage rates and continued gains in household income."

The RBC Housing Affordability measure captures the proportion of pre-tax household income needed to service the costs of owning a home. During the fourth quarter of 2009, measures at the national level rose slightly across all housing types (the higher the measure, the more difficult it is to afford a home).

The detached bungalow benchmark inched 0.3 per cent higher to 40.6 per cent, the standard townhouse rose by 0.2 percentage points to 32.9 per cent, the standard condominium climbed by 0.1 per cent up to 28 per cent and the standard two-storey home increased by 0.3 percentage points to 46.7 per cent. Despite the recent increase, all affordability measures remain well below their levels from a year ago.

The report projects that the cost of owning a home will continue to rise, as strong demand and limited supply of homes for sale sustain the upward trend in prices. Exceptionally low mortgage rates and anticipated rate increases starting mid-year are fuelling demand.

Real estate markets in B.C. and Ontario should see a further boost in demand prior to the introduction of the harmonized sales tax (HST) on July 1, 2010, which will increase the transaction costs associated with a home purchase.

According to the report, the federal government's recent announcement of changes to the mortgage market were aimed at preventing a bubble from forming in Canada and could reduce demand when the new rules take effect in April. However, the precise market effect is unknown at this point.

"The anticipated and gradual rise in interest rates indicates that affordability is likely to gradually get worse as rates return to normal levels," added Hogue. "The significant drop in mortgage rates since late 2008 was the principal factor contributing to the overall improvement in housing affordability in the past year."

RBC's Housing Affordability measure for a detached bungalow for Canada's largest cities is as follows: Vancouver 69 per cent (up 1.4 percentage points), Toronto 49.1 per cent (up 0.1 percentage point), Ottawa 40.4 per cent (down 0.3 percentage points), Montreal 39.1 per cent (up 0.9 percentage points), Calgary 37.1 per cent (up 0.1 percentage point) and Edmonton 32.9 per cent (down 0.4 percentage points).

The RBC Housing Affordability measure, which has been compiled since 1985, is based on the costs of owning a detached bungalow, a reasonable property benchmark for the housing market. Alternative housing types are also presented including a standard two-storey home, a standard townhouse and a standard condominium. The higher the reading, the more costly it is to afford a home. For example, an affordability reading of 50 per cent means that homeownership costs, including mortgage payments, utilities and property taxes, take up 50 per cent of a typical household's monthly pre-tax income.
...
The full RBC Housing Affordability report is available online, as of 8 a.m. E.D.T. today at www.rbc.com/economics/market/pdf/house.pdf.

[UrbanWaterloo]

Real estate agents poised to vote on shakeup of industry
Proposed changes an attempt to satisfy concerns raised by federal Competition Bureau
Steve Ladurantaye, From Monday's Globe and Mail
Published on Sunday, Mar. 21, 2010 10:03PM EDT
Last updated on Monday, Mar. 22, 2010 1:57AM EDT
http://www.theglobeandmail.com/repor...rticle1507531/

Real estate agents are making a last-ditch effort to stave off pressure from the Competition Bureau by voting Monday on an overhaul of the way Canadians buy and sell homes.

Agents could find their job descriptions dramatically rewritten as the Canadian Real Estate Association votes on changes that would allow individuals to handle a greater portion of home sales on their own, while still taking advantage of the organization’s powerful listings database.

More than 300 representatives from the country’s real estate boards will gather in Ottawa to determine whether individual sellers should be able to pay a flat fee to an agent to post a listing on the organization’s proprietary Multiple Listings Service. Sellers could then negotiate the sale without the help of an agent. The proposed change would differ from the traditional method where agents handle the listing and sale process and take a percentage of the transaction as a commission.

The vote is a way for Canada’s real estate sales industry to satisfy concerns raised by the Competition Bureau, which has filed charges with the Competition Tribunal alleging the real estate association makes it impossible for any of its members to offer consumers fee-based services for particular portions of a transaction, such as listing on the MLS or negotiating a sale price.

This leads to higher prices for consumers, the Bureau alleges.

The proposed changes are a key pillar in the real estate organization’s defence before the Tribunal. The association must submit its response to the charges by March 25 and the organization hopes a strong vote from its members on the key issues troubling the Competition Bureau would be enough to have the charges set aside.

“CREA has been clear with the Competition Bureau that it was prepared to be pro-active and recommend rule changes that we believe address the board’s concerns even in the absence of a settlement,” the organization stated an internal memo to its members last month.

The MLS has operated for more than 50 years and only registered agents are allowed to list homes on the service. The MLS trademark is owned by CREA, and each real estate board operates the service in their region.

The main change being proposed by CREA would allow an agent to list a property on the MLS, leave the consumer to fend for herself throughout the rest of the process. Currently, if the MLS is used then the agent must be employed throughout the process.

Another change would allow a seller’s name and phone number to be contained in the system so buyers can contact them, though they would still need to ask an agent to pass that information along.

While the changes would address many of the Competition Bureau’s concerns, the agency may prefer to press ahead with its case because the language of CREA’s proposal contains wiggle room, lawyers say, that would allow local real estate boards to retain the power to enforce their own rules.

The bureau also has something to prove. When Commissioner Melanie Aitken was appointed last summer, she promised to improve the bureau’s record of challenging organizations accused of anti-competitive conduct. By taking the case against CREA to a tribunal, the bureau will have to convince a specialized body that the association’s practices are limiting competition in the home-selling business.

CREA president Dale Ripplinger – who is a full-time agent in Saskatchewan – refused to comment on the meeting or its implications for his almost 100,000 members. The locally elected presidents of each of the country’s real estate boards have also been instructed to not speak with the media.

If the members approve the changes, a CREA spokesperson said the changes would be implemented “as soon as it is reasonable at each local board.”

Those who work with the public have been spending a great deal of time trying to figure out what the changes would mean to their businesses and their industry.

Nawel Seth, a broker at Coldwell Banker Trail Blazers Realty in Markham, Ont., said he plans to offer a la carte services – flat-fee listing, one-off advice, negotiating help – as soon as he’s given the green light.

“I can tell you that most agents I’ve spoken to across the country are comfortable with any changes that may be coming,” he said.

[jay]

I hope they do change it. It's a scam right now.

[Shawn]

I agree there is an overhaul needed. While real estate commissions rates have remained static at around 5% for years - until this past year - real estate prices have increased at an alarming rate - say 10 to 20% per year. That's like a salaried person getting a 10 to 20% raise in pay every year! Unheard of! I think these huge commissions (and the fact you really only need to do a few deals per year to survive) have attracted way too many people to be real estate agents, thereby splitting the pie into many more pieces. End result is you get an overwhelmingly large and under-experienced pool of agents instead of a smaller, well experienced group of professionals.

[Greg Moore]

There are a few things that are good about using real estate agents and a few that really bother me. I feel sellers are at a big disadvantage the way things are done.

I really can't stand the way agents present offers. They usually refuse to let the buyers and sellers negotiate face-to-face. It's more like the agents presenting to each other, discussing, then showing the offer to the other party. What is the advantage to either the seller or the buyer not to be at the table during negotiations? Unless your are a loud mouthed moron I can't think of any. I think it leaves too much room for agents to negotiate a deal in their best interest.

The industry is very good at looking out for itself. It will be interesting to see if this will create a new way of doing business with a list of fees for service more like a dentists office.

I hope these changes are good for everyone.

[taylortbb]

MARCH HOME SALES SURPASS THE 700 THRESHOLD
http://www.kwreb.on.ca/Stats/March%2...%20Release.pdf

KITCHENER‐WATERLOO, ON (April 6, 2010) – For the first time in the month of March, residential property sales through the Multiple Listing System (MLS®) of the Kitchener‐Waterloo Real Estate Board (KWREB) surpassed the 700 transactions threshold.
Home sales surged last month to 731 units, an increase of 47.1 percent relative to March 2009 results. In February there were 555 sales.
“Usually we start to see this kind of activity in April and May,” said, Ted Scharf, President of the Kitchener‐Waterloo Real Estate Board, “but spring has sprung a little earlier this year in terms of home sales.”
March’s sales included 427 detached homes (up 31.8 percent from 2009), 134 condominium units (up 69.6 percent from 2009), 71 semis (up 54.3 percent from 2009) and 93 townhouses (up 111.4 percent from 2009).
The most popular price range continues to be for homes selling between $225,000 and $250,000, with 120 sales in March, up 36.4 percent over last year. But demand for the highest price ranges continues to grow, with a notable 200 percent increase in residential sales over $500,000. In March there were 39 homes sold in March for more than half a million dollars, compared to only 13 properties this time last year.
Strong sales resulted in a 9.6 percent increase in the average sale price of homes sold in March to $276,695, as compared with one year ago. Detached homes saw an average sale price of $326,233 a 13.7 percent increased compared with March 2009.
Encouraging sales are a number of factors: The economic outlook, consumer confidence, the coming Harmonized Sales Tax, and most notably, the recent announcement of mortgage rate increases, with more adjustments expected to come.
REALTORS® believe that healthy communities depend on a strong economy, safe neighbourhoods, a clean environment, access to housing and the protection of rights of property owners. The KWREB recognizes the need to support and enhance the Quality of Life enjoyed by residents of Waterloo region.

Total Residential Units Sold in March over the last 10 years
Year | K-W Only Sales | All Area Sales
2000 | 412 | 501
2001 | 396 | 463
2002 | 435 | 514
2003 | 390 | 460
2004 | 553 | 659
2005 | 493 | 589
2006 | 484 | 596
2007 | 514 | 616
2008 | 479 | 608
2009 | 405 | 497
2010 | 561 | 731

March Residential Sale Price over the last 10 years
Year | K-W Only Sales Average Price | K-W Only Sales Median Price | All Area Sales Average Price | All Area Sales Median Price
2000 $156,588 $144,450 $161,517 $145,875
2001 $158,576 $150,250 $161,907 $154,500
2002 $172,077 $159,500 $174,142 $159,950
2003 $182,251 $168,000 $184,595 $168,000
2004 $197,873 $184,000 $197,320 $183,700
2005 $212,917 $197,000 $218,144 $202,000
2006 $226,924 $213,981 $237,702 $215,000
2007 $240,539 $224,000 $247,417 $227,000
2008 $252,567 $239,000 $254,443 $239,950
2009 $252,335 $240,500 $252,383 $239,900
2010 $273,584 $252,500 $276,695 $253,000

Definitions
K‐W Only= MLS® transactions through the KWREB within the cities of Kitchener and Waterloo.
All Area= K‐W Only plus the townships of Woolwich, Wellesley, Wilmot and any out‐of‐jurisdiction sales sold through KWREB.
The use of average price information can be useful in establishing long term trends, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types. Those requiring specific information on property values should contact a REALTOR®.


Home sales soar across Waterloo Region in March, prices climb
April 06, 2010 | Record staff | http://news.therecord.com/article/694404

WATERLOO REGION — Home sales jumped about 45 per cent across the region in March, compared to the depths of the recession a year ago.

And average selling prices climbed, too, but more in Kitchener and Waterloo than Cambridge.

In Kitchener, Waterloo and surrounding townships, 731 homes were sold in March, a 47.1 per cent increase, says Ted Scharf, president of the Kitchener-Waterloo Real Estate Board.

The average selling price was $276,695. That’s 9.6 per cent higher than a year ago.

In Cambridge, 299 homes sold, a 43 per cent jump over depressed sales in March 2009, said Bob Peace, president of the Cambridge Real Estate Board.

The average selling price in March was $264,436, a 3.6 per cent increase over a year ago.

The stronger economic outlook and consumer confidence are spurring sales, Scharf and Pease said.

The new 13 per cent harmonized sales tax coming July 1 and announcements of higher mortgage interest rates are also fuelling spring sales, Scharf said.

[UrbanWaterloo]

National Housing Starts - March 2010
http://www.cmhc-schl.gc.ca/en/corp/n...04-12-0815.cfm



March Housing Starts Higher In Kitchener
Canada Mortgage and Housing Corporation
Apr 12, 2010 08:15 ET - http://www.cmhc-schl.gc.ca/en/corp/n...04-12-0815.cfm

TORONTO, ONTARIO--(Marketwire - April 12, 2010) - Canada Mortgage and Housing Corporation (CMHC) released March preliminary housing starts data for the Kitchener Census Metropolitan Area (CMA) today. Construction began on 185 homes, up from the 148 units started in the same month last year.

To view the graph associated with this release, please visit the following link: http://media3.marketwire.com/docs/Kitchener.pdf

Builders poured foundations for 90 single-detached homes in March, up from the 71 units started in March 2009. Townhome starts decreased to 36 units, down from 75 units last March. There were 45 rental apartment units started in March. Only the cities of Kitchener and Waterloo recorded higher starts in March. For the first quarter of 2010, construction began on 574 homes, up from the 341 units started in the same quarter of 2009.

"Housing starts are expected to remain above 2009 levels for most of this year as homebuyers are taking advantage of the historically low mortgage rates," said Erica McLerie, Senior Market Analyst for the Kitchener CMA. "New home sales have been strong as the tight resale market conditions have encouraged homebuyers to purchase in the new home market," added McLerie.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. 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 vital decisions.

[UrbanWaterloo]

Resale market sees nearly 100,000 homes listed for sale in March
http://creastats.crea.ca/natl/

OTTAWA – April 15th, 2010 – Homebuyers have more choice heading into the busy spring buying season, with new supply in Canada's resale housing market setting a record for the month of March. While resale housing demand remains strong, rising numbers of new listings are resulting in a more balanced national resale housing market.

According to statistics released by The Canadian Real Estate Association (CREA), some 97,663 residential properties were listed for sale on the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards in March 2010. This is an increase of 20 per cent from the previous March record set in 2008. A total of 233,402 new listings have come on stream since the beginning of the year, more than in any other first quarter period on record.

"Negotiations still favour sellers during the home buying process in a number of major Canadian housing markets," said CREA President Georges Pahud. "The rise in new listings means that buyers may shop around more before making an offer."

Demand remains very strong, but has edged lower compared to the record levels posted at the end of 2009. Seasonally adjusted national home sales totalled 130,072 units in the first three months of 2010. This represents the fourth highest quarterly level on record, down 3.4 per cent from the quarterly peak in the fourth quarter of last year. Sales activity in Ontario, Quebec, and Newfoundland & Labrador rose to new records in the first quarter. Higher activity in these provinces was offset by a decline in activity in British Columbia (-17.8 per cent) and Alberta (-9.7 per cent).

Actual (not seasonally adjusted) sales numbered 111,110 units in the first quarter of 2010. This is the third highest level ever for the first quarter period.

A total of 43,621 homes traded hands through Boards' MLS® Systems on a seasonally adjusted basis in March 2010. This is an increase of 1.4 per cent from February, as further gains in Toronto more than offset a decline in activity in Vancouver. Seasonally adjusted sales scaled new heights in Toronto and Ottawa in March.

Unadjusted national sales activity numbered 49,256 units in March. This marks the second highest level on record for the month of March. On a year-over-year basis, sales were up 40.8 per cent, smaller than those of the previous five months. Since a year will soon have elapsed following the recessionary decline and subsequent rebound for the Canadian resale market, year-over-year comparisons are expected to continue shrinking in the months ahead.

The national average price of homes sold via Canadian MLS® Systems in March was $340,920. This is the second highest national average price on record, just $300 below the peak reached last October. Compared to March 2009, the national average home price was up 17.6 per cent. As with sales activity, the increase was smaller than those recorded over the past five months, and year-over-year gains are expected to become further subdued as the year progresses.

The price trend is similar but less dramatic for the national weighted average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 16 per cent on a year-over-year basis in March 2010.

The residential average price in Canada's major markets climbed 19 per cent year-over-year to $373,835 in March. As with the national counterpart, the price trend is similar but less dramatic for the major market weighted average price, which rose 17 per cent from levels reported in March 2009.

There were 214,312 homes listed for sale on Boards' MLS® Systems in Canada at the end of March 2010, a decline of nine per cent compared to the elevated levels of one year ago. This is the smallest year-over-year decline in active listings since June 2009.

The actual (not seasonally adjusted) number of months of inventory in March 2010 stood at 4.4 months. While well below where it stood one year ago (6.7 months), and down slightly from March 2008 (five months), months of inventory are higher compared to March from 2004 through 2007. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

On a seasonally adjusted basis, months of inventory stood at 4.6 months in March. This was little changed from February, but stands above levels reported in the previous four months.

"The erosion of housing affordability is crimping activity in some of Canada's priciest markets in the lower mainland of British Columbia," said CREA Chief Economist Gregory Klump. "Higher mortgage interest rates and the rise in new listings may also soon reduce some of the urgency to purchase in Toronto. Sales activity in British Columbia and Ontario is expected to ease over the second half of 2010 once the HST comes into effect, pulling national activity lower. Rising supply and lower activity will take the steam out of the pricing environment following upbeat home sales this spring."

[UrbanWaterloo]

Governments of Canada and Ontario Celebrate New Affordable Housing in Waterloo Region
http://www.cmhc-schl.gc.ca/en/corp/n...04-30-1130.cfm

KITCHENER, ONTARIO, April 30, 2010 — Funding of $7.71 million for two housing projects providing a total of 65 new affordable housing rental units for seniors living on a low income was announced today in Kitchener.

The Honourable Gary Goodyear, Minister of State (Science & Technology), (Federal Economic Development Agency for Southern Ontario) and Member of Parliament for Cambridge, on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development and Minister Responsible for Canada Mortgage and Housing Corporation (CMHC), Leeanna Pendergast, Parliamentary Assistant to the Minister of Education and Member of Provincial Parliament for Kitchener – Conestoga, on behalf of Jim Bradley, Ontario’s Minister of Municipal Affairs and Housing; along with Ken Seiling, Waterloo Regional Chair, Doug Craig, Mayor of Cambridge, and Brenda Halloran, Mayor of Waterloo, made the announcement.

“Our government is investing in affordable housing, to help create jobs and improve the quality of life for those families who need it most,” said Minister of State Gary Goodyear. “These initiatives will help people in our community access safe and affordable housing that meets their needs.”

“These two new housing initiatives support our Poverty Reduction Strategy and are part of our Open Ontario plan to create jobs and opportunities,” said MPP Pendergast. “We will continue to work closely with our municipal and federal partners to maximize the number of affordable housing units which are built during the life of this program.”

Today’s announcement celebrates funding for two local affordable housing projects:

• 565 Margaret Street, a 61-unit project located in Cambridge received over $7.2 million. The project is sponsored by Home Concept Property Management, providing affordable housing for seniors living on low income in Cambridge.
• Newo Seniors, located at 364 Erb Street West and sponsored by Newo Holdings Ltd. received $480,000 for four additional affordable rental units. The units will provide housing for seniors living on low income in Waterloo.

“The Waterloo and Cambridge projects provide a greater choice of safe, affordable rental housing for our senior citizens,” said Ken Seiling, Regional Chair. “There is still a great need for affordable housing in Waterloo Region, so the addition of 65 new units is especially welcome.”

“There's no question that affordable housing is an issue facing each of the municipalities in our region,” said Waterloo Mayor Brenda Halloran. “Today's announcement will help ease that pressure, and will have a direct impact on individuals and families in our communities.”

“It’s partnerships like this that make a difference and can directly address the need for added affordable housing opportunities for low-income seniors,” said Cambridge Mayor Doug Craig. “Enhancing support for seniors is a priority for Cambridge and the multi-government investment of over $7 million will provide for an additional 61 units to help address the gaps in existing affordable housing.”

The Government of Canada wants to ensure that Canadians on fixed incomes can live with independence and dignity and remain in their communities, close to family and friends. Canada’s Economic Action Plan provides $400 million, over two years, to build new rental housing for low-income seniors. Overall, the Economic Action Plan includes $2 billion for new and existing social housing, plus up to $2 billion in loans to municipalities for housing-related infrastructure.

Canada’s Economic Action Plan builds on the Government of Canada’s commitment in 2008 of more than $1.9 billion, over the next five years, to improve and build new affordable housing and help the homeless.

Ontario is moving quickly to implement this additional funding. The province has already approved more than $388 million for construction-ready projects, which will improve access to affordable housing for low-income families, seniors and persons with disabilities across the province. It will also create jobs and strengthen local economies. To find out more about affordable housing in Ontario, visit www.ontario.ca/mah.

More information on this and other measures in Canada’s Economic Action Plan can be found at www.actionplan.gc.ca. To find out more about how the Government of Canada and CMHC are working to build stronger homes and communities for all Canadians, call CMHC at 1-800-668-2642 or visit www.cmhc.ca/housingactionplan.

[jay]

April house sales go through the roof
May 5, 2010 | BY CHUCK HOWITT, RECORD STAFF | http://news.therecord.com/Business/article/707033

WATERLOO REGION — House sales in Kitchener and Waterloo set a new record for the month of April.

A total of 724 residential properties changed hands, exceeding the previous record of 711 transactions in 2007, the Kitchener-Waterloo Regional Estate Board reported today.

House sales were also up in Cambridge last month. A total of 308 homes were sold, a 24-per cent increase over a year ago and the second-highest total ever in April, said the Cambridge Real Estate Board.

Ted Scharf, president of the Kitchener-Waterloo board, attributed the 12.6 per cent increase in April sales compared to a year ago to the impending HST (harmonized sales tax) and the threat of rising interest rates.

He cautioned that people shouldn’t overreact to the record sales totals. With the regional population growing by about three per cent a year, the board should be averaging 600 to 700 sales a month for April, one of the busiest times of year, he said. “We’re where we should be.”

Even the impact of the HST has been overrated, he believes, because it doesn’t apply to resale homes, and rebates are available on cheaper new homes.

While homes selling in the lower price ranges helped pull the market out of recession in April 2009, last month featured more activity in higher price brackets. Fifty-eight per cent of the homes sold last month cost more than $250,000. A year ago, 43 per cent of sales exceeded that mark.

The average sale price for all types of homes in Kitchener and Waterloo rose 12.9 per cent to $289,017. For detached homes, it rose 14.3 per cent to $331,366. Ten years ago the average price for all homes was $160,000.

Scharf isn’t worried we’re in the midst of a price bubble. Price increases have averaged a modest seven to eight per cent over the past decade, he said, well below the 20-per-cent spikes seen in some areas of the country.

For the year to date, sales are up 38.2 per cent to 2,437 units, from 1,763 for the first four months of 2009.

In Cambridge, strong demand pushed average prices up six per cent to $277,729 from $261,630 a year ago.

“Activity is forecast to remain elevated through the second quarter of the year before easing in the second half,” Bob Peace, president of the Cambridge board, said in a release.

The total dollar value of homes sold in April in Cambridge set a record at $85.5 million, up 31 per cent from a year ago. Active listings fell 23 per cent to 881 units.

[Spokes]

Ahh and the suburbs continue to grow in Kitchener.

How has barrelyards helped drive the numbers? Could they be starting the apartment buildings?

House construction surges in April

May 10, 2010
By Greg Mercer, Record staff

WATERLOO REGION – Home buyers rushing to beat the HST and rising mortgage rates helped make last month the region’s busiest April for new home construction in 20 years.

But builders are worried the stampede to snap up new homes this spring might lead to a major drop-off this summer – the worse case scenario for a sector just emerging from recession.

The foundations for 142 new single-detached homes were poured in Waterloo Region last month, up from 88 a year ago, the Canada Mortgage and Housing Corp. said Monday. But it was the spike in rental unit construction – driven largely by Waterloo’s long-awaited Barrelyards project – that pushed total housing starts to 390, a two-decade high.

It’s believed the Harmonized Sales Tax, set to go into effect July 1, is causing homebuyers to jump into the market sooner in a bid to avoid the tax. Though the 8 per cent portion of the HST will only be applied to new houses costing $400,000 or more, there’s a rush to avoid expected rises in mortgage rates, lawyer fees and realtor costs.

“People are trying to get in under the wire for the HST,” said Erica McLerie, the CMHC’s senior market analyst for the Kitchener census metropolitan area. “People are looking at the increase in mortgage rates, it’s constantly on the news. A lot of them are being savvy about it.”

McLerie expects the demand for new homes to remain strong for the rest of the year, though it will likely dip somewhat as this spring rush subsides. April’s strong numbers boosted the year-to-date housing starts to 964, more than double the 467 starts in the first four months of 2009.

But builders are less confident. Some are worried the bubble is about to burst, said Brian Blackmere, president of the Waterloo Region Home Builders Association.

“We’re starting to hear some rumblings from the consumer that ‘Oh my gosh, we’ve just understood there’s going to be a problem July 1st and things are going to go up,’” he said. “We’re only suspecting that what we’re seeing right now is a bubble, people trying to beat the HST. We don’t know how dramatically it’s going to fall.”

Waterloo was the most active local market in April, with 196 housing starts, including 185 apartment units. Kitchener recorded the most single-detached starts at 76. Cambridge was the only market where housing starts fell. There were 33 starts in Cambridge last month, down from 84 in April 2009.

Nationally, the seasonally adjusted annual rate of housing starts increased to 201,700 units in April from 199,200 in March. The seasonally adjusted annual rate for Ontario increased to 62,400 from 59,700 in March.

gmercer@therecord.com