Kathy Della-Nebbia's Blog

CMHC’s Housing Market Outlook

kathydellanebbia — Tue, 06 Jan 2009 16:48:53 +0000

Happy New Year. 2009 is upon us and the following reports will help Hamilton home buyers and sellers see what to expect in the local Hamilton real estate marketplace. Interesting times ahead. Click the links to see various reports and statistics from CMHC.

Fourth Quarter 2008 edition of CMHC’s Housing Market Outlook – Ontario Region: http://www.cmhc-schl.gc.ca/odpub/esub/65434/65434_2008_Q04.pdf

2008 edition of CMHC’s Rental Market Report: http://www.cmhc-schl.gc.ca/odpub/esub/64391/64391_2008_A01.pdf

Fall 2008 edition of CMHC’s Housing Market Outlook – Hamilton: http://www.cmhc-schl.gc.ca/odpub/esub/64303/64303_2008_B02.pdf

December 2008 edition of CMHC’s Monthly Housing Statistics: http://www.cmhc-schl.gc.ca/odpub/esub/61512/61512_2008_M12.pdf

The Fourth Quarter 2008 edition of CMHC’s Housing Market Outlook – Canada: http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2008_Q04.pdf

December 2008 edition of CMHC’s Housing Now – Major Centres – Hamilton: http://www.cmhc-schl.gc.ca/odpub/esub/64227/64227_2008_M12.pdf

If you would like to know more about real estate in Hamilton Ontario, visit me at www.realtorinhamilton.com.

Canada is Becoming a Buyer’s Market, According to Scotia Economics

kathydellanebbia — Fri, 12 Dec 2008 06:14:40 +0000

Canada‘s longest housing boom of the post-war period has come to an end, according to the latest Real Estate Trends report released today by Scotia Economics. The reversal of fortune has been most pronounced in the previously hottest markets of Western Canada, including Calgary, Edmonton and Vancouver. Nonetheless, conditions in virtually all regions are tilting back in favour of buyers for the first time in years.

“We argue against taking an overly alarmist view to domestic housing prospects,” said Adrienne Warren, Senior Economist and Real Estate Market Specialist, Scotia Economics. “This is not a ‘U.S.-style’ bust caused by overbuilding, speculative buying and imprudent lending, but rather a cyclical slowdown accompanied by a valuation adjustment in several large centres where booming demand conditions and temporary supply constraints led to an overshooting in prices.”

The report notes key differences in the fundamentals of Canada’s housing market relative to the United States. For one, the inventory of for-sale homes in both the new and resale market, while moving up, is still well contained relative to prior cycles. With builders in most jurisdictions beginning to slow the pace of new construction, and with a low risk of widespread foreclosures, the Canadian market does not face the massive inventory glut underlying record-setting U.S. price declines.

The Canadian housing market in a global context

The report tracks real house prices across a number of major developed nations over a 10-year period, coinciding with the latest global housing cycle, to provide some international context to Canadian price trends. It also compares a number of other international house price metrics, which taken together may provide a measure of price risk.

Home price appreciation in both the United States and Canada has actually been relatively modest by international standards, totaling a cumulative 50 per cent and 61 per cent respectively. While real prices have declined in Japan and Germany, the 10-year cumulative price run-up was considerably larger in Ireland, the U.K., Spain, France and Australia, all of which have experienced increases upward of or exceeding 100 per cent. While available data for 2008 varies, real price growth appears to have decelerated sharply or turned negative in all 10 countries considered, including Canada.

The report cautions that real price trends are not a particularly useful guide to future price movements, at least over the short-term. The driving forces behind the price appreciation as well as current supply and credit conditions are more important. Record unsold housing inventories, mounting foreclosures, overbuilding and credit constraints are bigger factors behind the continuing and steep slide in U.S. home prices than overvaluation, none of which are major concerns in Canada.

“There is further downside risk to home prices in Canada, especially in light of reduced growth and employment prospects,” said Ms. Warren. “We expect, however, that the correction in national average prices from their late-2007 peak will probably be in the range of 10 per cent-to-15 per cent, well below the ongoing U.S. retrenchment.

“Much of this realignment will occur in Canada’s three Western-most provinces, and will leave intact most of the significant price appreciation of recent years. Longer-term, the process of gradual housing price deflation globally may well be more pronounced outside of North America, including Ireland, Spain, the U.K. and Australia.”

Scotia Economics provides clients with in-depth research into the factors shaping the outlook for Canada and the global economy, including macroeconomic developments, currency and capital market trends, commodity and industry performance, as well as monetary, fiscal and public policy issues.

To find out how this will affect your decision on buying and selling homes in Hamilton, Ontario contact me at 905-574-4600, 1-877-574-7441, email – Kathy@RealtorInHamilton.com or visit me at www.realtorinhamilton.com. I would be happy to answer any of your questions

Market Watch – New Home Starts Dip

kathydellanebbia — Sat, 29 Nov 2008 00:50:11 +0000

New home construction will begin to slow in 2008, but will remain high by historical standards, according to the Canada Mortgage and Housing Corporation’s (CMHC) third quarter Housing Market Outlook report. In Ontario, economic uncertainty, rising new housing prices and a greater selection of homes available in the resale market will result in fewer new home sales in 2008 and a dip in new home starts in 2009. The report also notes the average MLS price in Ontario rose by 7.6 per cent in 2007. However for 2008 and 2009, the ne modest at 2.8 per cent and 2.3 per cent respectively.

Even though I have seen reduced activity in the Hamilton real estate market place, this report from CMHC would indicate we are heading into a more balanced time which should benefit both home buyers and sellers. If you are in more information about MLS listings and real estate in Hamilton, Stoney Creek, Ancaster areas of Ontario, contact me at Kathy@RealtorInHamilton.com or visit me at www.RealtorInHamilton.com.

Telephone Solicitation

kathydellanebbia — Fri, 21 Nov 2008 22:29:28 +0000

I just answered a telephone call asking to do market research in my area. This was the fourth time they have called. My call display showed the name unavailable and the area code was unknown, so I did not answer on the first three calls. Each time the light display indicated a message waiting, but when I answered, just dead air. What a nuisance and a time waster. So I looked up the code to find out it originated in New York. I live in Hamilton Ontario and have registered for the recently introduced “Do Not Call” list. My brain started working to find out which company would avoid the list by hiring out of country services. So on the fourth call, I answered. I still don’t know who instigated the call but when I stated I was on the “List”, I was told it did not apply to them. I can’t tell you how annoyed I felt.

So why did I choose to blog about this. I sell real estate in Hamilton Ontario. Much of my business has come by contacting home buying and selling prospects by telephone. I have been warned to make sure that when I call to first check to make sure their names are not on the “list”. And I respect that. As much telephoning has been a way of life for real estate agents here in Hamilton, telephone soliciting has always been a nuisance for busy people (including myself). We don’t like having our dinner or watching our favorite TV shows interrupted. So I have to come up with some innovative new ideas for approaching people who may want to list their house for sale and I’ll have to be creative to find buyers who are looking for those homes in Hamilton. It means I’ll have to do things differently and change with the times. And I’m sure that iI will not be calling from New York to circumvent the system. Hooray for the exciting new challenge. I also think that the newer generation of home buyers and sellers might appreciate a different approach to their real estate requirements.

Visit www.realtorinhamilton.comfor local Royal LePage, Hamilton real estate information and mls Hamilton listings of homes fors sale.

Bookmark This Blog

kathydellanebbia — Fri, 21 Nov 2008 15:54:16 +0000

Thoughts From a First Time Blogger

kathydellanebbia — Fri, 21 Nov 2008 04:31:45 +0000

Well, here I am writing my first blog. I am a Royal LePage Hamilton real estate agent who likes to keep up-to-date with what’s happening in the world. Home buyers and sellers are so computer literate and most of them start to search online for mls listings and houses for sale by surfing the web. More and more, I am told I need to start blogging and so here I am. But I’m new and I’m not sure exactly what it is than I am supposed to be writing about. Or how it’s going to help me sell more real estate. Do I advertise new houses that I have listed for sale or ask for help to find properties for my buyers? Do I talk about what’s happening in the Hamilton real estate marketplace? Where does the information come from? Is it my opinion and/or frustration? Where will I find the time? The questions are endless.

But I won’t be defeated. I will learn. I want to be the best real estate agent and that means keeping up with what interests my clients. I am looking for help from other realtors or anyone who is looking to buy or sell a house and likes to read blogs from realtors. This is only the beginning.