Real Estate Market - Oakville & Burlington Real Estate Blog

Archive for the ‘Real Estate Market’ Category

Royal LePage predicts homes will continue to appreciate despite recent talk of decline

Wednesday, January 18th, 2012 by Dan Cooper

The average price of a home in Canada increased between 3.6 and 6.1 percent in the fourth quarter of 2011, compared to the previous year, according to the latest Royal LePage House Price Survey and Market Survey Forecast. Royal LePage expects average price growth to continue through 2012 and predicts national average prices to increase by 2.8 percent by the end of the year.

I stated in my column last week that low interest rates and a relatively stable economy encouraged more buyers to take part in the real estate market in 2011, making it a strong year. In fact, it was Toronto’s second best year on record. This was despite calls in some quarters for Canadian house prices to soften in 2011. The strong recovery in the real estate market is likely to continue, according to Royal LePage. Recent high profile reports forecasting significant house price declines this year are not supportable. The consumer confidence in the housing market that was displayed in the last quarter of 2011 is expected to carry through 2012, according to the Royal LePage report.

This is how Royal LePage President and CEO Phil Soper explains the company’s latest survey: “In the recovery period following the 2008-2009 recession, I found myself repeatedly speaking of ‘irrational exuberance’ in the Canadian housing market. Expectations were too high and the pace of expansion unsupportable. With this report, I find myself in exactly the opposite position. Widespread calls for a major real estate correction in 2012 simply can’t be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand – albeit at a slower pace.”

While 2011 was a very strong year for price growth, Canada’s average home prices have grown by only 3.5 percent compounded annually over the past five years. This is well below the long-term average rate of appreciation. Canada’s GDP has also grown modestly over the same period and the economy is expected to expand by approximately two percent in 2012. Although unemployment remains stubbornly higher than pre-recession levels, sustained employment at today’s levels in a low interest rate environment can be expected to support continued average house price appreciation across the country.

”We believe calls for falling prices and more affordable housing in 2012 are unlikely to materialize,” said Soper. “While this will comfort the 70 percent of Canadians who are homeowners, there is cause for concern when house price growth outpaces increases in wages and salaries for an extended period of time. Coupled with more restrictive mortgage regulations that have made it more difficult to obtain financing, those who aspire to own a home may find it increasingly difficult to enter the housing market and, in some regions, it may leave people out entirely.”

Lack of inventory in Toronto produced strong year-over-year price appreciation in 2011. Average price gains ranged from 3.4 to 7.2 percent for the housing types surveyed. Migration and low interest rates also continue to drive real estate prices. At the end of 2012, average house prices in Toronto are forecast to increase 2.6 percent over 2011.

In last week’s column, I said I would have the Oakville housing statistics for 2011, but they had yet to be released at the time this column was being written. They should be out this week, so watch for next week’s column for a review of Oakville’s real estate performance for 2011.

Dan Cooper is an award-winning broker with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009, 2007, 2005, 2002, 2001, 2000 and 1999. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his innovative and interactive website at DanCooper.com. Be sure to catch the Dan Cooper Real Estate Series on DailyWebTV.com. For his free booklet How To Sell Your House For Top Dollar – Fast! or his Guide to Oakville Real Estate, please call The Dan Cooper Team.

Posted in Prices, Real Estate Market | No Comments »

Stability is the watchword in real estate in 2012

Thursday, January 5th, 2012 by Dan Cooper

I want to wish everyone a happy and prosperous New Year. As we enter 2012, all the signs point to a stable and balanced economy – which in turn creates a good climate for real estate transactions.

Across Canada, the real estate market was balanced in 2011 with housing prices growing more or less in line with the rate of inflation.

Oakville, which has always been one of the hottest markets in the country, surpassed the national trend for sales and price increases. The latest available statistics take us to the end of November and show that the number of residential sales was up 8 percent in 2011 over 2010 and the average price had increased by 8.5 percent – $609,034 in 2011 from $561,769 in 2010.

In Burlington, sales were on par with the national trend, but the average sale price increased by a whopping 13.8 percent – $421,008 in 2011 from $369,874 in 2010.

And we can expect the same pace of growth in 2012 according to the Canadian Mortgage and Housing Corporation. The key will be continued low interest rates. Rates had been expected to rise in 2011, leading to a slowdown in the housing market. But that didn’t happen.

In 2012, a looming economic slowdown, record consumer debt and weak wage growth could put a downward pressure on the market. But these will also encourage the Bank of Canada to leave interest rates on hold – and that’s good news for homebuyers. It’s also good news for sellers since the lower rates will encourage more buyers into the marketplace.

While uncertainty about the global economy and our own recovery will continue to mess a bit with our psyche, the fact that we will see some stability, that there will still be some growth in the economy and the job market, bodes well for the real estate scene over the next 12 months.

Whether you are buying or selling a home, choose a broker who understands the market, who is knowledgeable about the community and has the resources and staff to provide you with superior service 24/7.

From the entire Dan Cooper Team, I would like to wish you and your families all the best for 2012.

Posted in Burlington Real Estate, Oakville Real Estate, Prices, Real Estate Market, Selling | No Comments »

Looking for a strong finish in home sales for 2011

Monday, December 12th, 2011 by Dan Cooper

October and November were two of the strongest months for The Dan Cooper Team as we bucked the trend for the Oakville and Milton areas, and remained on track with what was happening in Burlington and the GTA.

There was a cooling in sales in the Oakville area in November, according to the Oakville, Milton and District Real Estate Board (OMDREB), but Hamilton/Burlington and Toronto enjoyed increases in listings, sales and average sale price.

“The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area,” says Toronto Real Estate Board President Richard Silver. “The market has also become better supplied, with annual new listings growth outstripping that of sales. As this trend continues into 2012, we will see more balanced market conditions.”

The average price in the GTA for November transactions was $480,421, representing an increase of almost 10 percent in comparison to $437,494 in November 2010.

In the Hamilton and Burlington areas, average prices rose 7.8 percent for homes and 6.1 percent for condominiums. This was for all transactions under the Realtors Association of Hamilton-Burlington, which takes in Glanbrook, Dunnville and Caledonia. Burlington on its own witnessed a 13.8 percent increase in the average sale price last month – $421,008 in November compared to $369,874 the same month last year.

So what happened in Oakville/Milton? The OMDREB says this is a traditional slowdown as consumers busy themselves preparing for the holiday season. It says overall sales in November compared with the same month last year were down 5.9 percent. Oakville, however, saw a 5.5 percent increase in sales, but experienced an almost static position in the average sale price. The average price in November was $588,557 compared with $589,354 in November 2010.

“While we are experiencing the traditional drop in sales that occurs during the winter months, we remain on track for a strong finish in 2011,” says OMDREB President Jack McCrudden. “As long as interest rates remain at their current historic lows, demand for housing in the Oakville/Milton market will remain strong.”

The key to selling your home is to choose an experienced realtor who will market your home effectively. Innovative advertising, knowledge about the marketplace, commitment and exemplary service differentiate The Dan Cooper Team. The result is that we are achieving accomplishments that illustrate the Dan Cooper difference. We have been the Number 1 team in Canada for Royal LePage for seven of the past 11 years, which is a testament to our ability to sell homes quickly and for the best possible price in the Oakville and Burlington areas.

Posted in Burlington Real Estate, Oakville Real Estate, Real Estate Market, Selling, Statistics | No Comments »

Housing market to remain strong to year end

Wednesday, October 19th, 2011 by Dan Cooper

The resale housing market continues to show strong gains as we enter fall. And if low mortgage rates continue, we’re looking forward to a vibrant market through to the end of the year.

Record low mortgage rates remain the most significant factor in buyers’ housing purchase decisions, according to Jack McCrudden, president of the Oakville, Milton and District Real Estate Board. “Even though recent Statistics Canada figures indicate a decline in consumer confidence across the country, homebuyers in this area are still influenced by record low mortgage rates and increased choice in the housing market.”

Similar opinions are being expressed in the Hamilton/Burlington area and Greater Toronto.
Ann Forbes, president of the Realtors Association of Hamilton-Burlington, says, “We are heading into the fall market with positive reports on the market. In general, we are seeing better-than-average results across the board when we look at last year and the 10-year average.”

And in Toronto, Jason Mercer, senior manager of market analysis for the Toronto Real Estate Board, says, “Strong price growth through the first nine months of the year was mitigated to a great deal by low interest rates and rising incomes. As buyers continue to take advantage of the affordable home ownership options in the GTA, we remain on pace for the second best year for sales under the current TREB market area.”

What are we talking about exactly?

In Oakville, sales were up by 3.5 percent and the average selling price increased five percent in September compared to the same month last year. Year-to-date, the average sale price is up by 8.5 percent to $608,301 from $561,197 this time last year.

The biggest gains were witnessed in Milton, recognized as one of the fastest growing communities in Canada, where the number of sales increased by 39 percent and the average price jumped by 16 percent last month compared to September 2010.

In Hamilton and Burlington, the condominium market saw the largest gain with a 13.9 percent increase in the number of sales when compared with September last year. Prices, however, dipped slightly (less than one percent) last month. The area covered by RAHB includes Grimsby, Dunnville and Caledonia. Burlington alone saw the number of sales increase by 11.4 percent, but experienced a drop in pricing by 3.8 percent in September compared to September 2010.

Sales in Greater Toronto were up 25 percent and the average selling price for detached, townhouse and condos were all up about nine percent in September compared to the same month last year. In fact, over recent months the number of listings has improved so the Toronto board expects homebuyers will have more to choose from in the months ahead.

McCrudden appears to sum up the current climate with these comments, “If low mortgage rates continue, we’re looking forward to a strong market through to year end.”

Whether you are buying or selling, it is important to work with a broker who is familiar with the area, has a professional team, strong marketing initiatives and a proven track record for providing results. At The Dan Cooper Team, we are available for our clients 24/7, we have an innovative and effective marketing program and we are selling homes for top dollar – fast. For more information or a free home evaluation, call the Dan Cooper office.

Posted in Real Estate Market, Selling, Statistics | No Comments »

Summer approaches hot autumn for real estate

Friday, September 16th, 2011 by Dan Cooper

It was a hot summer, both in temperatures and real estate. And the strong market shows no signs of slowing down as we enter the fall. The volume of sales and house prices in the Oakville area last month were in double digits. The story was similar in Burlington and the rest of the GTA.

“It is generally expected that mortgage rates will remain low into 2012, making it a good time for first-time buyers to enter the market,” says Jack McCrudden, president of the Oakville, Milton and District Real Estate Board. “Going into the fall, the increase in new listings will provide both new and move-up buyers with more choice, and these two factors point to a strong stable market over the next few months.”

This is what he is talking about. Area existing home sales increased by 10.3 percent last month over August last year and the total value of all sales in August showed a 21.4 percent gain. In Oakville, the average sale price increased by 16.5 percent in August over the same month a year ago. The average price this year was $613,408 compared with $526,451 in August 2010. So far, for the year, prices have increased by nine percent overall compared to the first eight months of 2010.

The Burlington and Hamilton market experienced increases in listings, sales and average sale price for the third straight month. The number of homes listed in August increased by 24.1 percent, sales were up 12.5 percent and the average house price gained four percentage points over August 2010. In the condominium market, the average sale price was 2.5 percent higher over the same month last year.
Bear in mind that the statistics coming out of the Realtors Association of Hamilton-Burlington include communities such as Caledonia and Dunnville in addition to Greater Hamilton. When it comes to Burlington, I believe the stats would closer match those of Oakville than Hamilton. I’m very familiar with the Burlington market and what I am seeing are increases that are in line with what’s happening in Oakville.

As we see the market continuing to rebound, I have to emphasize how important it is to select an effective broker; someone who will ensure you sell your home for the best price possible. Are they using the best print options, how effectively are they using the internet, how often is your listing going to be profiled, are they utilizing new technology such as QR codes? The Dan Cooper Team is proud to being doing all of this and more.

Innovative marketing initiatives and investment, knowledge about the marketplace, commitment and exemplary service differentiate The Dan Cooper Team. The result is that we are achieving accomplishments that illustrate the Dan Cooper difference.

Our track record speaks for itself – top team in Canada for Royal LePage in seven of the past 11 years. It’s an accomplishment we are proud of and one that our clients have appreciated when we sold their homes quickly and for top dollar.

Posted in Real Estate Market | No Comments »