:: First quarter Canadian Home sales highest on record for MLS® ::

National resale housing activity via the Multiple Listing Service® (MLS®) reached the highest level of any quarter on record in the first quarter of 2007, according to statistics released by The Canadian Real Estate Association. While resale housing markets in the United States have been weakening, Canadian markets are following a different trend and remain on solid ground.

A seasonally adjusted* total of 129,219 homes were sold through using the Multiple Listing Service® in all reporting markets in Canada in the first quarter of 2007. This is an increase of 2.9 per cent over the previous quarterly record, which was set in the third quarter of 2005. Led by strong gains in British Columbia, Alberta, Saskatchewan, Ontario and Québec, sales activity was up by 6.9 per cent over levels recorded in the fourth quarter of last year.

New quarterly records for activity were set in Alberta, Saskatchewan, Manitoba, Québec, New Brunswick, Prince Edward Island, and Newfoundland and Labrador. Sales activity also reached the second highest quarterly level on record in Ontario and Nova Scotia.

Sales remained strong throughout the first quarter, but momentum showed tentative signs of easing as the quarter progressed.

On a seasonally adjusted basis, some 42,836 homes traded hands via the Board and Association MLS® systems in March 2007. This represents the third highest monthly level on record, and was down just 0.4 per cent from February 2007. March 2007 activity also came in just 1.3 per cent below the record set in January 2007. By contrast to the national trend, sales activity in Alberta, Saskatchewan, Manitoba, and Newfoundland and Labrador set new monthly records in March.

Seasonally adjusted new residential listings on MLS® numbered 204,270 units in the first quarter of 2007 – the second highest level for any quarter on record. This represents an increase of 1.2 per cent from the fourth quarter of 2006 and was just 0.3 per cent below the highest quarterly level on record, which was reached in the third quarter of 2006. New listings reached the highest quarterly level on record in Alberta in the first quarter of 2007.

Seasonally adjusted new listings numbered 68,800 in March. This is an increase of 3.0 per cent from 66,811 units listed in February, and the second highest level for new listings for any month on record.

The quarterly increase in new listings was unable to keep pace with the rise in sales activity, so market conditions became tighter in the first quarter of 2007. This caused the national MLS® residential average price to rise more quickly. Average price climbed by 10.0 per cent year-over-year in the first quarter of 2007 on a national basis, and set new quarterly records in British Columbia, Alberta, Saskatchewan, Ontario, Quebec, New Brunswick, and Nova Scotia.

The value of seasonally adjusted sales activity reached $38.1 billion in the first quarter of 2007 – an increase of 10.8 per cent from the previous quarter and the highest level of any quarter on record. This was the largest quarter-over-quarter gain in MLS® residential dollar volume in 3.5 years. New quarterly records for dollar volume were also set in every province.

On a monthly basis, seasonally adjusted dollar volume was valued at $12.7 billion in March, down just 0.1 per cent from the record reached in February 2007.

“The resale housing market remains remarkably strong throughout Canada,” said CREA Chief Economist Gregory Klump. “Tight markets make for sizable price gains, and the resale housing market is no exception. Sellers’ markets are tightest and price gains are loftiest in Western Canada. In keeping with that trend, CREA forecasts that price increases this year and next will be biggest in the Prairie Provinces and British Columbia.”

“The federal government recently raised the loan-to-value ratio requiring mortgage default insurance for the first time in 40 years, and now Canadians with a minimum 20 per cent down payment will be able to obtain a mortgage without paying the insurance,” said Ann Bosley, President of The Canadian Real Estate Association. The minimum down payment requirement was 25 per cent before April 20th.

“Rising home prices has had an impact on the ability of some Canadian consumers to save for a down payment on a home, and this change will make it easier for some home buyers to access home ownership. It will also ensure those consumers with smaller down payments will require the mortgage default insurance for a shorter period of time, which will add up to considerable savings in the long run,” said Bosley.

“A market adjustment for the maximum amount consumers can withdraw from their RRSP for a down payment under Home Buyers’ Plan is another change the federal government could make that would be beneficial to first-time home buyers,” added Bosley. “The current limit of $20,000 per individual has not been adjusted since the Home Buyers’ Plan was established in 1992, even though home prices and inflation have increased substantially since that time.” (CREA 25/04/2007)

gimmeshelter.ca HotBarrieListings.com BarrieHomeworth.com mikemontague.com

:: Single women represent a significant and growing portion of Canadian home buyers ::

Although traditionally considered less inclined to buy homes than other demographics, single women of all ages are continuing to knock down barriers by purchasing real estate and tackling home repairs in droves.

According to a Female Buyers Report, 30% of single, never-before married women own their own home. For divorced or separated women that proportion is 45%, and for widowed women it’s 64%.

Poll results found that of the single, never-before married women who are not yet homeowners, 31% say they will potentially purchase their next home within three years. More than half (56%) of women who intend to purchase in the next three years are shopping for a property in the $150,000 to $350,000 price range, while 10% have slightly fatter pocket books and are looking for a property priced above $350,000.

Women today are earning higher salaries than ever before, and are much more financially independent than has been the case in the past. So it’s not surprising that women are distancing themselves from traditional patterns, like looking for a man to buy a home with, and are not intimidated by the home buying process. Of the women polled who intend to purchase a home in the next three years, 56% are willing to participate in bidding wars, in comparison to only 49% of men.

What’s more, the survey found that, of women intending to buy in the next three years, 25% said they are looking to purchase a ‘fixer-upper’ and plan to renovate it themselves. Only 9% intend to hire a contractor. Research shows that women in Toronto, Halifax and Regina are the most likely to undertake renovations.

According to the survey, the biggest factor driving women to buy homes is that it makes more sense to them than renting. Of women who own a home, 36% gave that as the reason they bought property. Other important factors include making a good investment, cited by 22% of female homeowners surveyed, and pride of ownership, cited by 13%. Simply put, women today are more financially astute than previous generations, and appreciate real estate as a long-term investment.

Women are eagerly learning all they can about real estate. When asked, “What methods will you use to educate yourself about home purchasing?” the top three responses were speaking with a real estate agent (83%), speaking with friends and relatives (78%) and using real estate and financial websites (64%).

The survey also found that 34% of women would forego a wedding reception in order to put a larger down payment on a house, as would 27% of men. Women and men are both moving away from tradition, as a 2004 survey found only 30% of women and 15% of men likely to forego a wedding reception in order to invest in a home. (CREA 17/04/07)

gimmeshelter.ca HotBarrieListings.com BarrieHomeworth.com mikemontague.com

Appraisal - Week in Review

Just for fun I counted the office appraisals for the first week in April. We completed 40 residential appraisals as follows: Chicago (9), Chicago Heights (1), Arlingnton Heights (1), Prospect Heights (2), Melrose Park (1), Bartlett (2), Oak Lawn (1), Palos Hills (1), Carol Stream (1), Frankfort (1), Mount Prospect (1), Palatine (1), Winnetka (1), Flossmore (1), Niles (1), Franklin Park (1), Hanover Park (1), Northfield (2), Elk Grove Village (2), Downers Grove (1), Morton Grove (1), La Grange (1), Bridgeview (1) and Roselle (1).

As you can see we work Citywide

Mortgage rates have idled in neutral for five weeks.

Bankrate.com reports that "the benchmark 30-year fixed-rate mortgage rose 3 basis points to 6.22 percent, according to a national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.29 discount and origination points. One year ago, the mortgage index was 6.44 percent; four weeks ago, it was 6.2 percent."

Further, "the 15-year fixed-rate mortgage fell 1 basis point, to 5.92 percent. The 5/1 adjustable-rate mortgage fell 3 basis points, to 6.05 percent."

Read more at Bankrate.com

Bernanke's take on economy

Testimony puts scare into bond market

Upward pressure continues on long-term rates: the 10-year T-note at 4.65 percent has jumped the March range, and mortgages are at risk to lose the 6.25 percent level.

The economy has slowed to growth near 2 percent, but shows no sign of serious impact from the housing recession. This morning, personal income and spending each rose by .6 percent in February. Construction spending, expected to drop, instead rose .3 percent.

Weekly applications for mortgages are holding in a steady band. If a mortgage credit crunch were beginning to bite, we would see a decline by now. Refinance apps are running stronger than would be explained by interest-rate-advantage models, indicating that large numbers of ARM borrowers are successfully escaping their upward resets.

The corporate sector is showing some stress: earnings are falling, many estimates calling for mid- to low-single-digit growth, a small fraction of performance in the last several years. Capital expenditures are unexpectedly weak, orders for durable goods in a sustained decline. However, balance sheets are strong, and after a long run the downshift could be no more than a cyclical wobble.

The consumer is king: If spending and job growth continue (the payroll numbers next Friday are crucial), then GDP growth will continue. At a subdued rate, but given the Fed's hope for gradually declining inflation, the ideal outcome.

If growth and inflation behave, fine. However, what if inflation does not "gradually decline," as in Fed forecasts since summer 2006? Will the Fed have the courage to choose inflation-fighting over GDP preservation?

The immediate answer is not so hot: long-term rates broke upward during Federal Reserve Chair Ben Bernanke's Wednesday testimony to Congress.

Read the entire Lou Barnes article at Citywide Services

March - Appraisal month in review

The spring real estate market is starting to pick up. In the month of March I completed 18 full appraisals. These included condominiums in Chicago's Lakeview, Grand Boulevard and West town neighborhoods. Single family homes in Ashburn, Gage Park, Woodlawn and Chicago Lawn neighborhoods. And two flats in Austin, Auburn Gresham and Greater Grand Crossing.

In addition I saw homes in Round Lake, North Riverside, Chicago Heights and Thornton.