Newly released Calgary Real Estate Board Stats (http://www.creb.com/media/stats_pdfs-graphs/res-stats-pdfs/2008/Public%20Stats%20July%202008.pdf) shows a 9.8% DECREASE in average price for a single family Calgary metro home in July 2008 from July 2007. ($505,920 -> $456,380)

Nothing like taking a 10% / $50,000 (average) equity hit in one year! If someone got a 25 yr mortgage @ 5% last year, it would only take 4.5 years of mortgage payments to recover that 10% loss… (10 yrs if they got a 40 yr mortgage @ 5%)


Q: Looking TO July stats?
Q: How are RE experts going to tweak Calgary July stats?

Thanks Rahul for sharing very useful informations in making decision of life time with others.

Appreciate your efforts.

You are awesome! Keep updating.

Cheers!

http://www.youtube.com/watch?v=-89orGT8pP8&ref=patrick.net

Q: How's our Real Estate Boards/CHMC/experts are different than US experts?

My take for TO market at this point:

Reason high invertory and price are still holding in TO market.

"There will be a lot of homeowners and investors under water in the next few months/year, but this won’t be fully reflected in the way of price reductions because the average person tends to “hang on to their losses” much the same way long term investors in the stock market will hold onto an unfavorable issue through a bear market rather than try to time a bottom. Its human nature not to sell at a loss, because then that loss becomes “realized” and not just a paper loss. A point when people can not afford loss that is called offical RE market crash by experts. But we have to wait for that moment and right time to buy."



http://www.thestar.com/Business/article/473583

Sales of existing homes in the Toronto area are down for the seventh month in a row compared with 2007, with the price of an average home up by only 1 per cent – the lowest increase since 2001.

Existing home sales of 7,806 were down by 12 per cent last month, compared with last July, according to figures released by the Toronto Real Estate Board yesterday.

But home prices were the surprise, coming in at a weaker than expected $371,427, the lowest year-over-year increase since the first quarter of 2001, according to housing analyst Will Dunning.

"Prices have been decelerating, and there certainly are an awful lot more listings and more competition than before," said Dunning.

Buyers have more to choose from in the Toronto area, with active listings up significantly – by 28 per cent over the same time last year, according to the board...........................................................................

Recently i bought a power of sale old Semi detached 3 bed room home in Brampton... The place has yard walk out to park.

Avg sale price in area is 26000$.I bought the house for 245000. Had a 1 bedroom finished basement.

Did some minor repairs, paint job and new stainless steel appliances for 4000$. Total cost after closing cost 25000$.

I got a mortgage of 196000 at variable rate of .95 below prime currently working out to 3.80%.


Here is the math.
Interest 615$
Property tax 225$
Utilities 300$(Estimated avg)
Propery Ins 60$
Total cost 1200$

Basement has been rented out for 500$.

Actual cost of owning 700$ v/s renting 1050$.


Even if the variable rate goes up by about 2% still i am in the clear as far as rent v/s owning goes..
The only downside is i take is market risk, which i think for my property and location is very marginal.. the other risk is major incidental maintainance

I am not saying buying is for everybody.. I did have a sleepless month after i decided bought the place.. But today i am beginning to enjoy the 350$ difference and well as the house..

Mind u the appartment was crap and a good decent appartment in my area cost 1250$ and the space in my house is atleast 1 - 1/2 times the rental place (exculding the basement)

The dude..

Hey Dude,
Congratulations!!!!
I am sure living in 'your own house' is definitely a wonderful experience for you. You have done a very wise thing.
IMHO, if you are buying your house for living (not as investment/ income option), like you want to get rid of the rental and moreover if you can afford it, any time is a good time because you won't be living there for 6 months or a year and then sell it. Chances are that you will stay there for few years, save few thousand $$$$$ and then upsize/downsize. So whether market is down or not, may not make much difference. In any case, Real Estate, in long term appreciates. People are saying sale is down, yes it is, if you compare with 2007 figures (which were historically best ever) but the figures are still higher than 2006 and also there is a price increase in GTA . Here are some excerpts from the latest Market Watch report issued by Toronto Real Estate Board:

________________________________________
August 6, 2008 -- With 7,806 transactions recorded last month, the Greater Toronto Area (GTA) resale housing market continued at a moderate pace in July, Toronto Real Estate Board (TREB) President Maureen O’Neill announced today.

Prices remained stable throughout the GTA in July. At $371,427 the average price increased slightly more than one per cent from $366,012 recorded in July 2007 and nine per cent from the $342,034 figure of two years ago.

In the City of Toronto the average price of $395,342 increased less than one per cent from the July 2007 price of $395,044 and 10 per cent from the July 2006 figure of $360,409.

In the 905 Region the average price increased three per cent to $355,401 compared to the July 2007 figure of $345,967. This also represents an eight per cent increase from the July 2006 average of $329,644.

“Sales declined 12 per cent last month from the best-ever July 2007 record of 8,912 but increased 10 per cent from the 7,082 sales transacted in July 2006,” said Ms. O’Neill. “Comparing July 2007 with July 2006, sales increased by 26 per cent.”

In the City of Toronto 3,132 sales were recorded, down 14 per cent from July 2007’s 3,640 transactions but up 10 per cent from the 2,852 sales recorded two years ago in 2006. Comparing July 2007 with July 2006, a period before the Land Transfer tax went into effect in Toronto, sales increased 28 per cent.

In the 905 Region there were 4,674 transactions, down 11 per cent from July 2007’s 5,272 sales but up 10 per cent from the 4,230 sales recorded in July 2006. Comparing July 2007 with July 2006, sales increased 25 per cent.

From a year-to-date perspective, the GTA’s 51,249 sales in 2008 have declined 14 per cent from the 59,339 reached at this time a year ago.

Certain neighbourhoods throughout the GTA experienced increased sales activity in July.

In Whitby (E15) sales increased 22 per cent from July 2007, based on strong sales in most housing types.

Brampton East (W24) saw a 12 per cent increase, based primarily on semi-detached home sales.

Strong detached home sales drove Uxbridge (N16) to a 23 per cent increase compared to a year ago.

The Annex (C02) experienced a 29 per cent sales increase due to strong detached home and condominium apartment sales.

In addition to stable prices, the list to sale price ratio, at 98 per cent, remains unchanged from a year ago.

____________________________________________

Once again, congrats.

Njoy your new home

-----------------------------------------------------------------
Sanjeev Manocha, MBA
Real Estate Sales Representative
Accredited Buyer Representative (ABR)

Re/Max West Realty Inc, Brokerage
96, Rexdale Blvd., Toronto

Mobile: 416-843-7600
Office: 416-745-2300
http://www.manocharealty.com" rel="nofollow">LINK

http://watch.bnn.ca/#clip72331

Merrill Lynch says Canada's housing market has spiralled into a "sustained turndown." BNN interviews David Wolf, chief strategist and head of Canadian economics, Merrill Lynch Canada.

I have been two open houses this weekend and am following that houses/community from last 15 months. A year before same kind of premium home was 700K. After 6 months that was 650K and today's 600K. That was sold by Jayman builder around 575K in 2006. We already in 2006 price mode.

If I give offer 580K it will accepted. That house is already in market from 65 days and 3 are on sale.

More than 100K loss in 12-15 months?

It seems to me we are declining faster than US and I will not be surprise when people own mortgages more than their house price. Lot of Americans left their home in that kind of scenario even they can afford monthly payment.
That is called foreclosure market or right time to buy.

I am still trying to understand "Real Estate, in long term appreciates"? How long term is called official long term? I call RE only timing, timing and location. Timing is more important then location.


http://www.greaterfool.ca/

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