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Archive for September, 2011

Canada-U.S. house price gap widens

Friday, September 30th, 2011

 Please keep in mind while reading the following article that the Canadian average price is bieng bolstered by historicly high prices in Vancouver and Toronto. As of August 30 2011 the average Edmonton home ( detached, condominium and duplex / townhouse) price is $324,217 that is down 8.5% from a high of $354,718 in July of 2007.  

The following article is taken from the Globe and mail September 29 written by Michael Babad.

Canada-U.S. house price gap widens
The gap between Canadian and American house prices – they’re well above pre-recession levels in Canada and still depressed in the United States – continues to grow.

Research by deputy chief economist Douglas Porter of BMO Nesbitt Burns shows a “staggering turnabout” from the 1990s and the first half of the last decade, when American prices were higher.

His research compares U.S. prices measured in Canadian dollar terms, and he notes that the two aren’t perfectly comparable because median prices, used for the U.S. are typically lower than average prices, which were used for the Canadian reading.

“While it goes without saying that U.S. and Canadian real estate markets have been in different universes recently (while sharing the same hemisphere), the gap just keeps on going,” Mr. Porter said.

“The average home price in Canada is now gliding along at $360,000, more than twice the median existing home price in the U.S. (converted into C$ terms) … Nothing says prices need equalize, but a gap of more than 2:1 is not sustainable. Three ways it can narrow: a) the C$ falls, b) U.S. prices recover, or c) Canadian prices drop. Or, some of the above, or all of the above.”

Yesterday, a fresh reading of the Canadian market, via the Teranet-National Bank house price index, showed house prices climbed 1.3 per cent in July, and are now 12 per cent above their pre-recession peak. As well, Bank of Nova Scotia said in a recent report that Canada’s real estate market may be slowing, but it hasn’t slumped as have those in some other countries.

 If you are considering purchasing property in the U.S. please read my blog post New U.S. property tax rules hit home , and be aware of all the posible risks.

Making your Real Estate needs my priority
 
Dave Dry
Realtor, Re/Max Real Estate
Office: (780) 457 3777
Cel: (780) 446 3727
Fax: (780) 478 7017

Disappearing Realtor

Friday, September 9th, 2011

What is the number one complaint about Realtors? I think this says it all.

 Although we can all laugh, communication is the most important component in the Realtor / client relationship.

 Making your Real Estate needs my priority

 
Dave Dry
Realtor, Re/Max Real Estate
Office: (780) 457 3777
Cel: (780) 446 3727
Fax: (780) 478 7017

Open House in Klarvartten on Sunday September 11

Thursday, September 8th, 2011

Property details.

Making your Real Estate needs my priority
 
Dave Dry
Realtor, Re/Max Real Estate
Office: (780) 457 3777
Cel: (780) 446 3727
Fax: (780) 478 7017

September newsletter and stats

Friday, September 2nd, 2011

 

Market activity for the month of August 2011

 

 July

Change from 

June 2011                       to July 2011

  August

Change from 

 

July 2011                        to August 2011

New Listings

3,038

-222

-6.8%

1,897

-1,141

-37.5%

Active listings

8,421

-11

-0.1%

8,343

-78

-0.9%

Sales

1,441

-327

-18%

1,507

+66

         +4.3%

Average Sale price

*House and Condo sales

$314,440

+8,809

+2.8%

$301,041

-$13,399

-4.2%

House

$384,656

+$5,247

+1.3%

$370,348

-$14,272

-3.7%

Condo

$244,225

+12,372

5.0%

$231,735

-$12,520

-5.1%

What do these statistics tell us?

 

    The stats for August are just another indication that our market, after a few years of uncertainty, is returning to a more stable and predictable trend.

 Historically the market builds to its peak in July, and prices decline to the end of the year. We can see this same trend in 2011 with a high average price for the year in July. The price drop off in August was significant but still in line with previous years. Sales numbers are up in August also in line with previous years, as both buyers and sellers see the end of their budgeted available time to complete their respective transactions drawing closer.

 With the U.S. and Europe still trying to get the financial houses in order, there was a real concern that the Canadian consumer would constrain their spending and, slow economic growth. We have kept our heads and not reacted as some had feared, as such we continue to lead the 1st world countries out of the economic crisis.

 The other piece of interesting news is that in light of the of how badly the U.S. financial situation is, the Bank of Canada Governor, Mark Carney, is not going to raise interest rates in the foreseeable future, also adding a calming and stabilizing factor to the market.

 Many Canadians are thinking of purchasing Real Estate south of the border, there are some great deals to be had. I have spoken to a number of people who are considering, or have, purchased property in Arizona, Florida, and California etc. Please be aware that the tax laws that apply can be very different from those in Canada. Your tax obligations may not be limited to the value of the property owned there. Before purchasing property in the U.S., please be aware of ALL the tax implications.

 

 

Dave Dry

 

Realtor, Re/Max Real Estate

 

 

 

Office: (780) 457 3777

 

Cel: (780) 446 3727

 

Fax: (780) 478 7017

 

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the REALTORS® Association of Edmonton. Trademarks used under license from CREA.
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