What car does your realtor drive? What does it project to your client?

Being a real estate agent is a business where image matters in a big way. Your clients and prospects will be investing hundreds of thousands to millions of dollars through you, and they want to know that you're someone who is fully capable of representing their best interests. So everything you present about yourself makes a statement to your clients, and prospects about whether you're the agent they'll want to work with... or not.

The car you drive can make a huge statement about you to your clients and prospects. If your car is a very small one, or is old, dirty, and in poor condition, what message do you think this is sending to the people you want to do business with?
Some agents might find themselves saying, "This is the car I want to drive, and I'm not going to change what I want to do for anyone." That's OK, as long as you are aware of the choice you're making.
Still another agent might say something like, "Well, I'd like a nicer car. But I really can't afford one."
You might after all. Bill was and is a highly-successful real estate agent. One time, Bill and I arrived in the parking lot for a meeting at the same time and he showed me the Mercedes-Benz he had just purchased. He asked me my opinion of the car, and I answered by telling him I thought it was very nice. He then responded by telling me he had purchased the car for only $5,000.00.
Now granted, the car was a number of years old, but it still looked great! And Bill really just wanted the look of a great car to impress his clients and prospects with, but he didn't want to spend a lot of money to get this look.
In the city where I live, it's normal for residential agents to have their names and companies posted on the driver and passenger side doors to their vehicles. So whenever I see a real estate agent's car on the street with their name on it, I ask myself what my first impression of them is from seeing this. Sometimes I see them driving subcompact cars, mid-size cars, luxury cars, pickup trucks, and sometimes I also see them driving SUVs. In fact, one agent's car I've seen parked at a golf course so often during working hours, that I'm convinced he's far too lazy for me to ever work on a transaction with!
My point is your car makes a statement about you the moment people see it. And since you're in a business where you're driving people around on a regular basis, your car will make an even bigger statement to people. After all, they'll be riding around in it with you for hours.
So what kind of car are you driving right now? And what kind of car should you be driving? Well, part of that depends on where you live and the real estate community you serve. Ideally I recommend you drive a car that is one of the nicer ones normally driven by the type of clients you're working with. As an example, in farm and ranch areas, a top-of-the-line Dodge truck could be impressive, but it's definitely not going to work in Beverly Hills. And in Beverly Hills, a Mercedes might work very nicely, but it may offend some people in Heartland USA who feel strongly about others owning autos without American brand names on them.
Many agents like a clean, well-maintained SUV. The SUV has become an incredible phenomenon in our society, and it's owned by people from all economic classes, too. As long as it's not very old, and it's kept in good condition, most people look upon SUVs as an acceptable vehicle for themselves, their friends, and their real estate agents to own. And of course you don't have to spend an arm and a leg to own one, either.

Eco-growth, sustainable development growth

Increasingly, local governments across America are working to create eco-friendly public amenities—bike paths and light-rail networks—and zoning for transit-friendly smart growth developments (read sustainable development) that combine compact housing with shops, schools, and services. And just like extra insulation in the attic, these kinds of investments are already paying dividends—both to whole communities and to the individual homeowners who live in and around them.

Smart growth finds inroads around U.S.

It’s happening in places like Denver, Pasadena, Calif., and Arlington County, Va. But the vanguard is Portland, Ore. That city’s extensive network of streetcars and so-called “complete streets”—which offer trees, generous crosswalks, and dedicated cycling lanes—mean that its residents don’t need to climb behind the wheel as often as most Americans. In fact, researchers with the region’s government found that the locals drive four fewer miles per day than their counterparts in other U.S. cities.

That might not sound like much, until you scale it up across the whole metro population. It turns out that each year, if you include the value of productive time lost to commuting, Portlanders hang onto about $2.6 billion that they would otherwise spend on their vehicles.

Spend transportation costs on housing instead

So where does the money saved on traveling fewer miles get spent? No one has kept track, but there are clues. A national study by the Center for Housing Policy shows that there’s an inverse relationship between household spending on transportation and housing: Households that spend more on transportation spend less on housing and vice versa.
“We have less congestion, shorter commute times, and more housing and transportation choices than is typical of American cities,” says Metro Portland Councilor Robert Liberty. “Our neighborhoods are maintaining their value—and not just property value, but community vitality as well.”
Other research supports his claim. Valuing New Urbanism—a pivotal 1999 study by San Diego University’s Charles Tu and Mark Eppli of George Washington University—found that consumers were willing to pay an 11% premium for homes in compact and walkable smart-growth style neighborhoods. By 2007 Eppli said that premium had increased to 16%, and that it was still holding despite the current market correction.

'UP' the movie, inspired houses

Seattle, Washington

This real life Up house (pictured here with balloons as a promotional stunt for the release of the film) belonged to Edit Macefield. Both are now local legends in her community, memorialized by many with a tattoo of the house created in their honor. In 2007, she refused to give in to developers who offered nearly $1 million for her small house worth just $8,000 at the time, on land valued at $120,000.

Only after she died was it sold, but to a quite appropriate new owner: a local company known for motivational seminars. Rather than tear it down, they’re going to elevate it to be the top floor of their new offices.

GTA (greater Toronto area) High-Rise Condo Sales Reach Record Highs .

According to newly released statistics from the Building Industry and Land Development Association, 2011 has started off with a bang in GTA- in regards to the high-rise condo sector.

According to R.N., their primary information source, 2,335 new homes and condominium suites sold in the GTA during January 2011. This does signal a 13 % decline from this time a year ago; however, high-rise sales skyrocketed, reaching the second highest level since 2000.

Les Sohar, realtor with Re/Max indicated that 2,335 unit sales in January is quite respectable considering that most builders are using that month to sell inventory as they prepare to launch new phases and projects in February and March.
"January is not a heavily weighted month in the grand scheme of things, but sales of over 2,300 units in January bodes well for the Spring market," Sohar said.
Regionally, low-rises in Toronto itself saw the greatest decline- dropping almost 45% from last January. The biggest increase for low-rises occurred in Halton, where there was actually an increase of 72.4%.
For high-rises, the greatest drop occurred in Halton (west of Toronto), where sales fell by 45.7%. The greatest increase was in Peel (between Halton and Toronto), where sales went up by 23.3%.



The Axe Falls...Tick Tock

BEFORE November’s election, Republican leaders in the House of Representatives solemnly promised that they would cut spending by $100 billion this year alone if voters put their party in charge. Voters did, in the House at least, and on February 19th the new Republican majority repaid the compliment by approving cuts of $100 billion in the budget Barack Obama proposed for last year (compared with the short-term “continuing” spending resolutions Congress has actually adopted, the cut is only $61 billion). The hitch is that the measure will not become law, since the Democrats who control the Senate, not to mention the president with his veto pen, are implacably opposed to it. With the continuing resolution due to expire on March 4th, there is little time to work out a compromise, and little evidence either side wants one.

The cuts the House approved are swingeing by Washington’s standards. They constitute an unprecedented reduction of some 10% in non-defence discretionary spending, meaning all government programmes bar mandatory entitlement schemes and defence (see chart). Food-safety inspections, oversight of financial institutions, college scholarships for the poor, nutrition schemes for mothers and babies and other seemingly unobjectionable items would all be scaled down. Funding for pet Democratic causes, such as public broadcasting, regulating greenhouse-gas emissions and Mr Obama’s health-care reforms, would be eliminated altogether. There were even some cuts to homeland security and defence—normally a sacred cow for Republicans. The party’s fiscal hawks teamed up with Democrats, for example, to approve an amendment that would scrap a programme to develop a second engine for a military jet.



Despite such worrying portents, the leaders of both parties say they want to strike a deal before March 4th, to avoid a government shutdown. Moderate Republicans, in particular, seem fearful of a repeat of earlier budget battles that led to shutdowns in 1995-96, when Bill Clinton managed to paint the Republican majority in Congress as extreme and recalcitrant. Whether they can persuade their extreme and recalcitrant colleagues of the wisdom of holding back is another matter. The party’s top brass, after all, had originally proposed much smaller cuts, only to be overruled by the lower ranks.

The Senate’s Democrats are not making things any easier. They say that with Congress in recess this week, there will not be time to hammer out a deal before March 4th. Instead, they say, Congress should extend the government’s authority to continue spending at current levels for another month or so. John Boehner, the House speaker, says he will not agree to any extension that does not entail cuts. A group of moderate senators (see article) are trying to help. But time is short, and the willingness of the Republican rank and file to compromise uncertain.

Existing-Home Sales Rise Again

The uptrend in existing-home sales continues, with January sales rising for the third consecutive month with a pace that is now above year-ago levels, according to the National Association of REALTORS®.

Existing home sales which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million

Les Sohar, realtor with Re/Max said “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Sohar said. “The extremely favorable housing affordability conditions are a big factor, but buyers have been constrained by unnecessarily tight credit. As a result, there are abnormally high levels of all-cash purchases, along with rising investor activity.”

Economist Intelligence Unit’s index, Top 5 places to live out of 140 Worldwide

How the rating works

The concept of liveability is simple: it assesses which locations around the world provide the best or the worst living conditions. Assessing liveability has a broad range of uses, from benchmarking perceptions of development levels to assigning a hardship allowance as part of expatriate relocation packages. The Economist Intelligence Unit’s liveability rating quantifies the challenges that might be presented to an individual's lifestyle in any given location, and allows for direct comparison between locations.

Every city is assigned a rating of relative comfort for over 30 qualitative and quantitative factors across five broad categories: stability; healthcare; culture and environment; education; and infrastructure. Each factor in each city is rated as acceptable, tolerable, uncomfortable, undesirable or intolerable. For qualitative indicators, a rating is awarded based on the judgment of in–house analysts and in–city contributors. For quantitative indicators, a rating is calculated based on the relative performance of a number of external data points.
Here is the top 5 out of 140 in the world!

1)  Living in Vancouver in Canada

According to the Economist Intelligence Unit, the best city to live in in 2011 for quality of life is Vancouver on Canada’s western coast.  It topped the charts in 2008, 2009 and now it’s topped the 2010 index which indicates where we all should be living in this current year.

2)  Living in Melbourne in Australia

The top ranking Australian city for yet another year is Melbourne, it managed to beat Vienna to second place this year however, whereas last year the two cities’ final positioning in the index were reversed.

3)  Living in Vienna in Austria

Having lived in Vienna I am always surprised to see it ranking so well in these indices – however, on paper the city does indeed have a lot going for it.  Culturally it has unrivalled international offerings of course, and as we all know, education and healthcare standards in Austria are very high – so of course Vienna scores well there.  However, as an expat destination it is cold and unfriendly.

4)  Living in Toronto in Canada

There is a strong rivalry between Vancouver and Toronto on many levels, and the fact that Toronto falls a few places behind its rival will only add fuel to this ongoing fire!  However, Toronto should be proud of its fourth place in the Economist Intelligence Unit index.

5)  Living in Calgary in Canada

The final ‘winning’ entrant in the top five most liveable cities in the world according to the latest Economist Intelligence Unit index is Calgary – also in Canada!  And it has strengthened its position as an attractive place to live since the last index where it was forced to sit in joint fifth position with Perth.

5 points of service

The customer service process is absolutly paramount with me. Nothing takes presidance over it. Just like Jaguar of North America, which has just been recognized as a JD Power 2011 Customer Service Champion which means they have excelled in their own industry by delivering superior service to their US customers. Part of the criteria used to measure customer satisfaction were the “touch points” of people, presentation, process, product, and price.

I remember reading a statement from the CEO of Hyundai who stated, “Americans would rather go to the dentist than visit a car dealer", how sad is that? Although I must say, that my recent experience with all kinds of different car brands has been luke warm at best. Mind you I have not visited the Jaguar dealship, yet!

GM brought in the group from Ritz Carlton to help them improve customer service.

Biometric Locks:for your home

Biometric locks employ high-tech fingerprint recognition technology to verify your identity before allowing a locked door to be opened.

I would definitely be eyeing a biometric lock as a present for the person who has it all. In addition to keeping you safe, a biometric lock will provide home security and ease of entry—no more fumbling with keys.A biometric lock uses an optical or thermal scanner to read and memorize your fingerprint (and the fingerprints of other authorized users who you decide should have access to your home).

Opening a biometric door lock is typically a two-step process. First, press your fingertip—or hand—to the scanner, and the device identifies your unique characteristics. Next, you type an authentication code into a keypad to open the lock.
And there you go, that simple.

Wireless speeds doubled by researchers

Researchers at Stanford University have shown it's possible to double the data rate of communication networks without the need for additional frequencies, something that could lead to significantly faster wireless networking.

Described by its inventors as "simple and effective," the new technique relies on three antennas, instead of the two found in the latest 801.11n wireless devices. It allows full-duplex communications on the same frequency (that is, simultaneous send and receive), something considered before now to be physically impossible.

"Textbooks say you can't do it," says Philip Levis, one of the team behind the invention and assistant professor of computer science and electrical engineering at Stanford. "The new system completely reworks our assumptions about how wireless networks can be designed."
The team is also seeking a patent for its work--which could restrict implementations of the technology--and limit it to artwork and those manufacturers who can afford to pay a fee. Because of this, the technology might manifest within future Wi-Fi devices as an extension to the existing wireless standards, usable only if the receiving computing device also has the extension.
This isn't uncommon among wireless device manufacturers, It's easy to imagine a company like Apple paying for the technology to be used in its AirPort base station and computers, for example, to double wireless networking speeds and give their products a competitive advantage.

Social Benefits of Homeownership and Stable Housing

Research has consistently shown the importance of the housing sector on the economy and the long-term social and financial benefits to individual homeowners. The economic benefits of the housing market and homeownership are immense and well documented. The housing sector directly accounted for approximately 14 percent of total economic activity in 2009. Household real estate holdings totaled $1.5 trillion in the first quarter of 2010.

In addition to tangible financial benefits, homeownership brings substantial social benefits for families, communities, and the country as a whole. Because of these societal benefits, policy makers have promoted homeownership through a number of channels. Homeownership has been an essential element of the American Dream for decades and continues to be so even today.



What's in a paint? Lots evidently!

Every year at about this time the manufacturers announce the newest paint trends for the year.
Benjamin Moore recently announced that from deep smoky wine to wildly pumped up fuchsia, purple promises to be a predominant colour in home decor in 2011. Most manufacturers present their colours in palette groupings. In Benjamin Moore's case, the palettes for next year are Soulful (including Wasabi, Amulet and Etrusan); Spirited (with Grape Green, Wrought Iron and Lucerne); and Dreamy (Gray Mirage, Genesis White and Kendall Charcoal).
My favourite paint colour names for this year, so far, come from Beauti-Tone, the paint manufactured for the Home Hardware chain in Burford, Ont. Its Rock & Bold palette includes names like Rolling Stone (it's blue); Going Gaga (also blue) and I Got You Beige. And we can't resist mentioning Crystal Blue Persuasion, Billie Jean, Blond Ambition and Greyful Dead. Beauti-Tone also has a new Sesame Street collection with palette names Cookie Monster, Elmo, Oscar the Grouch and more.



Paint company CIL declared that 2010's Colour of the Year is blue. The Colour of the Year is an airy and opportunistic blue that symbolizes igniting horizons, creating new beginnings, renewed energy and a positive dynamic, the company says. It evokes an image of vast skies, breezy ozone freshness and the energy and essentiality of water. Given these associations, along with the fact that this is a receding colour, it will always create a sense of space.
Home improvement retailer Rona said this year, given the economic instability spreading across the world, a greater need for calm, comfort and well-being has emerged, which is reflected in our choice of decor and, more particularly, colours. Nevertheless, in trying to remain positive about the future, we continue to pair stylish, vibrant and decisively modern colours with neutral tones.
Budget conscious decorating will combine with individual style to drive 2011 paint colour trends, says the Paint Quality Institute, which is owned by The Dow Chemical Company. The U.S.-based institute's paint and colour expert, Debbie Zimmer, says, "There's no escaping the state of the economy, even for homeowners who want to beautify their homes. Rather than diving into large-scale renovation projects, in the coming year consumers will search for inexpensive ways to freshen and update their homes. Many will conclude that painting is the perfect solution."
PPG Pittsburg Paints introduced four new palettes for 2010/2011, including Pink City in which "a vibrant, profound Indian pink and a spicy rusty orange play against an off-white linen. A stony gray and a chocolate brown combine to reflect urbanity, masculinity and a grounding place for the rest of the palette."

Canadian inflation rate a non event

Although it’s a light day for data out of the States ahead of the American long weekend, Canada read its monthly CPI print, which has had a somewhat muted effect on the market. Consumer prices were stable in January, coming in at 0.3% on the month, right on expectations. This translates into a 2.3% rise in the last 12 months. However, the core rate, which excludes more volatile items from the calculation, was flat at 0.0% on the month, leading to a year-over-year rate of 1.4%. Although the currency reaction would tell you otherwise, this is a bearish sign for the Canadian dollar from an interest rate perspective, as it buys the Bank of Canada some time before they need to action any further increases to contain price pressures. Clearly inflation is not yet a measurable concern for the country—and although it looms on the horizon with rates still at historic lows and accommodative policy from Canada and the US starting to filter its way down the economy, we are still a few months away from a rate hike in Canada. Many economists are predicting a May hike if inflation picks up in Q2. This is consistent with the data, but it could be argued that risks are to the downside as far as the timeline is concerned. Although stability has been achieved, Canada is hampered by growth in the US and Europe and this might continue to keep price pressures in line well past the spring.

As for the currency: as noted, the market reaction was benign. Price action has been consolidative under the 0.9850 mark, and the slow grind to 0.9820, which we have now seen twice in the last two days, has been anything but exciting. There is certainly a sense of uncertainty as far as the Loonie is concerned. It has established itself over par (USDCAD under par), and the range that once was 1.00-1.02 has now dropped lower. However, at these levels there is much buying interest, as many do not want to miss the boat on the move, and the fundamentals are not entirely supportive of continued strength in Canada from here. Nonetheless, risk sentiment continues to remain buoyant, putting upward pressure on the northern dollar, and with a break of the 0.98 mark, we could see further losses for the Greenback. Let’s not forget the time prior to the financial crisis, when USDCAD fell very quickly to 0.90 before rebounding right back to par within a matter of months.

Prime London area real estate primed for growth

Rising demand and a shortage of supply will ensure that prime central London property prices continue on their upward growth spiral over the coming five years, the latest forecast from Cluttons has said.
The property consultancy claims that top-end home values will have risen by at least 2.5 per cent by the end of 2011, with further increases expected in the medium-term.
Demand from domestic investors is also likely to boost the market, with many buyers competing for the limited supply of prime property available.

However, the forthcoming stamp duty increase to five per cent for properties over £1 million is may play an important part in transaction levels, the firm added.

TSX hits 14,000 level

The Toronto Stock Exchange surpassed the 14,000 level in early trading Wednesday, its highest point since July 2008. The energy sector advanced 0.42 per cent as oil prices moved toward $85 US a barrel after a report showed U.S. crude supplies unexpectedly fell last week, suggesting demand may be improving. The financial sector was up almost one per cent a week before Canadian banks start handing in their quarterly earnings reports.



Traders watch the NYSE results board earlier this year. The Toronto Stock Exchange passed the 14,000 level for the first time in almost three years on Wednesday. Really should this be a surprise? Did we all forget the 'world is coming to an end financially' back in 2008 when it dipped below 8000? Now that it has come back, everyone is surprised, I don't get it!

Resale housing market shows further improvement in January in Canada

February 15th, 2011 – National resale housing activity climbed further in January 2011, according to statistics released today by The Canadian Real Estate Association (CREA). Seasonally adjusted national home sales activity rose 4.5 per cent in January 2011 compared to the previous month, reaching the highest level since April 2010. Led by Vancouver and Toronto, seasonally adjusted sales activity posted monthly gains in more than half of all local Canadian markets in January. National sales activity has improved steadily since last summer, and now stands almost 25 per cent above the low point reached in July 2010.
We anticipated the recent announcement of tighter mortgage regulations, which will come into effect this March, would pull forward sales activity into the first quarter of 2011, particularly in some of Canada’s more expensive housing markets,” Sohar said, a realtor with Re/Max.

It will take some time before the longer term impact of the latest mortgage regulations on the housing market can be known,” said Les Sohar, realtor with Re/Max “For that reason, further action shouldn’t be taken until the impact can be measured. In the meantime, if last year can be used as any guide, sales activity may heat up further as we get closer to the date on which tighter mortgage regulations come into effect, especially in some of Canada’s pricier markets. That said, local housing market trends often diverge from national trends, so buyers and sellers should consult their local REALTOR^® to understand how the market is shaping up where they live.”

Actual (not seasonally adjusted) national sales activity via the Multiple Listing Service^® (MLS^®) Systems of Canadian real estate Boards came in 6.6 per cent below levels in January 2010. This was the smallest year-over-year decline since May 2010.
Actual (not seasonally adjusted) new listings on Canadian MLS^® Systems normally post their biggest month-over-month increase in January. January 2011 was no exception, marking the first time since 2007 that new listings more than doubled in January compared to the previous month. As a result, seasonally adjusted new listings rose 3.9 per cent from December levels, the largest monthly gain since March 2010.

Is the sunbelt finally on the way up for Real Estate?

The sand states continue to suffer though Florida saw a 42-month low in foreclosures signaling the worst might be over for the sunshine state. Foreclosures are expected to remain very high over the next 12-18 months and investors should consider how localized rates of foreclosure affect their strategy. For example, those flipping properties in Nevada might see margins squeezed with the continued wave being felt there.

This week showed continued bleeding in the housing market with higher interest rates, continued high foreclosures, and declining home prices. Still the market fundamentals are improving, even if marginally. Thinking forward, markets are becoming even more localized as some show signs of recovery. Over the last 2 years most markets have been significantly down so to see price increases in many areas and foreclosures slowing shows that markets are ready to recover.

Canadian Housing market is heating up...

The Canadian Real Estate Associations previous forecast called for a 0.8 per cent drop in prices this year. CREA, which represents realtors, predicts average home prices nationally will rise by 1.3 per cent in 2011 to $343,300, and another 1.3 per cent in 2012 to $347,900.
That’s not what it said in November, after it had downgraded its forecasts four times in a row. The previous prediction of a 0.8 per cent drop in prices would have made 2011 the first time after 15 years that home prices went into negative territory.
Les Sohar, a realtor with Re/Max said "I was on an offer on Wednesday night and had to compete against another agent, always a sign of a hot market, thankfully I won"

The Toronto Real Estate Board is even more bullish than the CREA for 2011, forecasting price increases of anywhere from 3 per cent to 5 per cent.
Sohar said " there was a home listed under power of sale for $233,000, no showings were allowed inside due to “potential mould and safety reasons.” it received 49 offers. It sold for $355,000, or 152 per cent of the listing price."

UK mortgage approval plummet, some sign of hope!

The devastating impact of the recession on the housing market led to the number of loans approved for mortgages falling by more than two thirds.
Figures from the British Bankers' Association showed that the number of approved loans fell by around 45,000, from 62,363 to a low of 17,421.
The approval rate rose in nearly every subsequent month to reach 45,562, but the green shoots of recovery appear to have been stomped down with approvals dipping again to 30,766 in October 2010.



The housing market is struggling for first time buyers due to the huge burden of increased deposits.
The predicted number of first-time home purchases this year is less than 200,000 - a third of the number in 2001.
The average deposit of almost £30,000 (nearly £60,000 in London) needed by today's first-time buyer is three times the amount of ten years ago, even though house prices have only doubled over the period.
It would take 14 years for someone on the average wage of £25,680 to save that deposit, said the Council of Mortgage Lenders last month.

 

Mortgage rates are about to head up!

The Bank of Canada is expected to start increasing its overnight rates this summer, moving from 1 per cent to 2 per cent by the end of the year. Whether you own a house or are looking to buy, rising mortgage rates are your enemy. Rising rates will make affording a first home much harder – so much so that you’ll pay more even if housing prices decline. Higher mortgage costs will also shrink the cash flow of families that stretched to buy a home but were getting by in a low-rate world – potentially by thousands of dollars a year.

This is what rates used to look like...which way is it likely to go? People looking for a home face astronomically high prices in some cities, but they benefit hugely from very low mortgage rates. What a dilemma these people face – buy now to lock in manageable borrowing costs for a while, or risk higher mortgage rates while hoping for housing prices to fall.

Real estate picture brightens, housing starts up (Canada)

The Canadian Real Estate Association has boosted its forecast for 2011 existing home sales after a stronger-than-expected hand-off from 2010.
CREA now expects sales via its Multiple Listing Service to hit 439,900 units, representing an annual decline of 1.6%. In 2012, national sales activity should rebound by about 3% to reach 453,000 homes, it said.
Average home prices are expected to rise by 1.3% to touch $343,000 in 2011 and $347,000 in 2012.



CREA expects that the market will regain traction after dipping in the second quarter as the economic recovery, jobs, incomes and consumer confidence rebound.
"Even though mortgage interest rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity. Strengthening economic fundamentals will keep the housing market in balance, which will keep home prices stable," said Gregory Klump, CREA chief economist.

Life is a series of up's and down's...at least in the USA housing market

As of October 2010, Las Vegas has seen a decline of 57.0% from its peak. Phoenix is not far behind with -53.4%, followed by Miami’s -48.7% and Tampa’s -43.2%. On a relative basis, only two markets – Dallas and Denver – have not seen their total decline fall below -10%. As of October 2010, their declines from their peak value measure -8.2% and -9.8%, respectively.

As of October 2010, the composite housing prices were still above their spring 2009 lows; however, six markets – Atlanta, Charlotte, Miami, Portland (OR), Seattle and Tampa – hit their lowest levels since home prices started to fall in 2006 and 2007, meaning that average home prices in those markets have fallen beyond the recent lows seen in most other markets in the spring of 2009. California markets appear to have remained fairly healthy after bottoming in the spring of 2009. San Francisco was up 18.0% since its 2009 trough, while San Diego and Los Angeles were up 10.8% and 9.3%, respectively. Only Washington DC, +12.5%, and Minneapolis, +11.7%, have seen similar recovery from recent lows.



Since 2000, the area traditionally defined as the Sun Belt – Arizona, California, Florida and Nevada –experienced the largest run-up in prices and, subsequently, experienced the largest downturn. While the declines in these markets are quite large, the increases in prices during 2004-2006 were equally dramatic. In 2004, Las Vegas witnessed a peak annual growth rate of +53.2%; Phoenix was not far behind with +49.3%. In addition, Los Angeles, Miami, San Diego, San Francisco and Tampa all registered peak annual growth rates above +30% during that time. Other MSAs, such as Atlanta, Charlotte, Cleveland, Dallas, and Detroit, never saw their peak annual growth rates move above 10%.
As a particular note, Detroit's prices are where they stood back in 1994, Wow!!!

Canadian real estate price index, GTA



The Greater Toronto Area is the most populous metropolitan area in Canada. The GTA is a provincial planning area with a population of 5,555,912 at the latest Canadian Census.

The Greater Toronto Area is the 8th largest metropolitan area in North America. In addition to the City of Toronto, it includes the Regional Municipalities of York, Halton, Peel and Durham.

These numbers show a consistent pattern of growth, with one slight decline during the 'world is coming to an end financially' scare back in 2008. These don't even come close to the USA's massive increase, much quicker than the graph above shows. During the peak in real estate prices in the USA back in 2006, their prices where at least 50% more than ours on average. Go to almost any country in the world and look at their home prices, compared to ours (Canada's), we are a deal...still!

Transparency in real estate in China?

Many emerging markets improved their levels of real estate transparency over the past two years, with China achieving the greatest improvement in the Asia-Pacific region, according to a report by Jones Lang LaSalle, a professional services firm specializing in real estate.
According to the latest China edition of the Global Real Estate Transparency Index from Jones Lang LaSalle and LaSalle Investment Management, its global real estate investment management subsidiary, China is currently classified as a semi-transparent market, moving up one full level from low transparency.
"China's property markets are as diverse as the country itself. The inclusion of China's second- and third-tier cities in this year's survey helps users of the index better understand their different challenges," Sohar added.
China's improved transparency, together with the ongoing market correction, seems to make the country's property sector more attractive for investors.

UK home prices fall

The building society said that prices were down 0.7%, with the average home now costing £164,381. ($264,719.). The more reliable three-month on three-month comparison showed prices fell by 1.5%.
A separate report by the Home Builders Federation claimed that the average first-time buyer would need to save all their earnings for more than two years to get on the property ladder.



The average age of a first-time buyer, unassisted by their parents or other family, was 37 years old, the report said. "First-time buyers - the life-blood of the housing market - are almost entirely shut out," said Les Sohar. "They desperately need an increase in lending and a properly functioning and sustainable mortgage market."
Figures from the Land Registry - which is considered the most comprehensive survey but which lags behind other polls - suggested that the picture is different across various regions of England and Wales.

Pending home sales increase in the USA

Pending home sales improved further in December, marking the fifth gain in the past six months, according to the National Association of Realtors.
The index,a forward-looking indicator, increased 2.0 percent to 93.7 based on contracts signed in December from a downwardly revised 91.9 in November. The index is 4.2 percent below the 97.8 mark in December 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

The Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.

American style real estate - an up and down ride!

Nobody is happy with the status quo. The federal government routinely guarantees 85% or more of newly issued residential mortgages, primarily through Fannie, Freddie, and the Federal Housing Administration (FHA). But withdrawing that support is impossible while the housing market is so fragile. The Treasury is scheduled to release a proposal for overhauling America’s housing-finance system as early as next week. But rather than resolve the status of Fannie and Freddie, it is likely to lay out several options, none of which is likely to become law any time soon.

The role of the FHA, which is to guarantee mortgages with low downpayments to families of modest means in return for a fee, is relatively uncontroversial. The big debate is to what extent the federal government should also guarantee mortgages to middle-class families. The Treasury’s options will include doing so through a stand-alone federal agency—perhaps a nationalised version of Fannie or Freddie—or by selling an explicit government guarantee for a fee to any lender, much as the Federal Deposit Insurance Corporation charges banks to insure their deposits.

I guess time will tell what options there are, if any in the near future at least.

Canadian economy vs USA economy

Canada’s job creation in January 2011 was more than four times the median forecast, pushing the Canadian dollar to its strongest level since May 2008 and adding to evidence the country’s economic recovery may be accelerating. Canada added 69,200 jobs.
Compare this with the numbers south of the border. Employers added 36,000 workers, the smallest gain in four months. The true comparison is that Canada is one tenth the size (more or less) of the USA. Canada's entire population would fit into the state of California. So if the numbers were reflected in the US, the job numbers would be in the 700,000 range, quite incredible.
This is the first time I can remember Canada leading the economic recovery, not the other way around. You would think with the Canadian dollar being more or less at parity with the greenback, that would have caused considerable unease, but it didn't.



The Billion dollar home!

It is now official, there is a billion dollar home. According to the plan, the house will rise to a height of 173.12 meters, equivalent to that of a regular 60-storeyed residential building. However, it will have only 27 storeys in all, which means each floor will have a ceiling considerably higher than the current average of nearly three meters.

The first six floors will be reserved for parking alone. Space for a total of 168 ‘imported’ cars has been earmarked here.All the cars will be serviced and maintained at an in-house service centre. This centre will be set up on the seventh floor.

The eighth floor will have an entertainment centre comprising a mini-theatre with a seating capacity of 50.

The rooftop of the mini-theatre will serve as a garden, and immediately above that, three more balconies with terrace gardens will be independent floors.
While the ninth floor will a ‘refuge’ floor – meant to be used for rescue in emergencies – two floors above that will be set aside for ‘health.’ One of these will have facilities for athletics and a swimming pool, while the other will have a health club complete with the latest gym equipment.
There will be a two-storeyed glass-fronted apartment for the family’s guests above the health floors. One more refuge floor and one floor for mechanical works will be built on top of these apartments.
The four floors at the top will provide a view of the Arabian Sea and a superb view of the city’s skyline, will be for the four family members.
According to the plan, two floors above the family’s residence will be set aside as maintenance areas, and on top of that will be an “air space floor,” which will act as a control room for helicopters landing on the helipad above.
The plan states that three helipads are to be built on the terrace.
The place will require 600 full time staff to keep it running on a day to day basis!

World home prices...the worst is over, sorta!

The worst may be over, but the recovery in many rich-country housing markets will be tepid and uneven. After a 4% drop in 2010, house prices in America will slip by a further 2% in 2011, according to the Mortgage Bankers Association. The Bank of Spain expects Spanish homes to lose 5% of their value. House prices in Britain will rise by 3% but remain below their 2007 peak value until 2013, says the Centre for Economics and Business Research.

Things to look out for that may disrupt or slow the cycle of growth are countercyclical property taxes. Financial authorities all over the world are introducing stricter capital requirements for banks to prevent another financial bubble forming. Similar restrictions, such as higher downpayments and stricter creditworthiness standards, will be aimed at borrowers. If these don’t work well, policymakers may consider a tax on borrowing that varies with asset prices and other cyclical indicators.

Is it record debt or record equity?

The Bank of Canada has expressed concern about the 'record levels of debt' that Canadians are taking on. It's not that Canadians are throwing money out the window, rather they are buying more houses, taking the homeownership rate to a record 70 per cent. Since very few homebuyers pay cash, the resulting indebtedness is hardly surprising.
About 40 per cent of homeowners have no mortgage, compared to 31 per cent in the United States, and given the fact that some 30 per cent of Canadians rent, about 58 per cent of households pay no mortgage interest. Coupled with that is the fact that the net equity of owners in their homes is "very high," more than 60 per cent, compared to 39 per cent in the United States.

 There are two ways to look at the numbers, sort of a glass-half-full, glass-half-empty kind of thing. Even with the rise late last year, growth in household credit is at it's slowest in seven to eight years.