1) Almost half of first-time homeowners in Canada say it’s now a buyers market, pointing to a pick up in activity in coming months, according to an online survey conducted by RBC. 43 per cent of those who intend to buy for the first time agreed. “That could be an indicator that there is higher home buying activity to come and rates do remain near historical lows,” said Marcia Moffat, RBC vice president of home equity financing Canadian banking, RBC
A combination of rising interest rates, the harmonized sales tax in British Columbia and Ontario, and new mortgage regulations all helped take some steam out of the market. RBC expects prices to slow to about 1.4 per cent gain next year, Chief Economist Craig Wright said.
The RBC poll found 85 per cent of first-time buyers considered buying a home a long-term purchase with only 15 per cent planning to sell in the next two years. As well, 93 per cent plan to buy for their own use and not for investment purposes.
When it comes to financing choices, the research showed the first-time buyer opted for certainty with 59 per cent choosing a fixed rate mortgage. Of those planning to buy in the next two years that figure came down to 49 per cent. A combination of the two mortgage options, part-fixed rate and part variable, is gaining popularity with 31 per cent of future buyers saying that would be their choice, compared with just seven per cent of those who bought in the past two years.
2) UBC Real Estate Prof, Tsur Somerville, states that the recent resurgence in BC real estate prices will result in slower gains in the future. That said, he also saw no signs of a pullback in prices and predicts slow, but steady, price growth for the foreseeable future.
3) The Canadian Real Estate Association is expecting the price of a home in BC to drop next year.. Chief Economist Gregory Klump says a slower third quarter in 2010 led to a more stable housing market. He explains, “Not only did demand come in weaker than expected, but so did supply. Because of the synchronized movement in supply and demand, the market has remained balanced.”Sales have bottomed out since the HST came into effect in July.
4) By Roslyn Kunin, Special To The Sun November 6, 2010 who recently wrote that BC will have consistent growth in 2011. We have peace and a political stability. Secondly, the export sector, which will be a major contributor to the province in 2011 and beyond. China, India and other rapidly growing nations are hungry for the energy and mineral resources B.C. can provide.
We are third at exporting culture – art, literature, music and film. Finally, baby boomers are nearing retirement and moving to BC, this bodes well for real estate. The growth in 2011 should be modest, about 2%.Our employment situation and our overall economy will be doing better than that of Canada as a whole, and significantly better than the U.S. Not a roaring boom, but definitely enough to raise a glass to on Dec. 31. Quite Possibly The Best Place on Earth!
What do you think?