Angel Wang & Helen Pan Team|Vancouver Real Estate Agents » canada real estate

House Construction Up 5.9 per cent in December

admin — Mon, 11 Jan 2010 19:34:36 +0000

According to the latest real estate market news released by Ottawa: House construction rose more than expected in December as Canada’s real estate market continued to show signs of recovery.

Canada Mortgage and Housing Corp. said Monday the number of seasonally adjusted housing starts were up 5.9 per cent from November, to 174,500 units. Most economists had expected an increase of between 160,000 and 165,000 units in December, following an upwardly revised 164,800 starts the previous month.

According to CMHC data, urban starts were up 6.6 per cent to 157,100 units in December, CMHC said in its report. Multiple-unit starts totalled 77,700 during the month, up from 72,800 units in November, while single-unit starts totalled 79,400, up 6.4 per cent from the previous month.

Urban construction was up 17.8 per cent in Quebec, 15 per cent in Atlantic Canada, 8.7 per cent in British Columbia and 2.9 per cent in Ontario, the report said. In the Prairies, urban starts declined 3.8 per cent.

Rural starts were unchanged at 17,400 units.

The Bank of Canada may shed further light on whether that strength has pushed Canada into a housing bubble when one of the governor’s advisers talks about the real estate sector in a speech Monday afternoon in Edmonton.

Meanwhile, Statistics Canada said Monday the value of building permits fell in November by 4.6 per cent from the previous month to $5.9 billion. Still, that was 23.1 per cent higher than November 2008 and 62.8 per cent higher than February 2009. The decline was due to a drop in the non-residential market, which offset increases in the residential real estate market.

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Investments in Vancouver Real Estate to Benefit from Strong Housing Demand in the Near Future

admin — Thu, 29 Oct 2009 00:23:36 +0000

Residential real estate in Vancouver has shown remarkable resilience in the current downturn. While the market has recorded a 5 per cent decline in home values compared to the peak reached in 2008, home prices in Vancouver have risen, on average, 17 per cent each year since 1980. This has made Vancouver’s property market lucrative and attractive to real estate investors. The trend should persist as a slew of market indicators, economic fundamentals, and other factors suggest that demand for housing in Vancouver—and therefore the market prospects for strong investment performance—should remain strong.

Various indicators paint a rosy picture of the property market activity in Vancouver. Housing sales in the January-August period are about 14 per cent higher than in the same period last year. Yet, this compares to an expected decline in housing sales of nearly 15 per cent in the country as a whole. In fact, the home sales rebound in Canada, forecast for next year, will be driven primarily by a robust recovery in sales in British Columbia and Alberta, with the Vancouver area leading the way. Increased housing demand, especially given limited inventory levels, will put an upward pressure on prices, making investments in real estate in Vancouver highly desirable.

In fact, inventory levels in Vancouver have already fallen as many home buyers have taken the advantage of low mortgage rates and well-priced properties in desirable locations. New listings are down approximately 23 per cent from last year. According to RE/MAX Canada, residential real estate market in Vancouver is currently considered balanced, with purchasers and vendors on the same page for the first time in years. This has exerted pressures on prices, which bodes well for those expecting to earn capital returns on their investment properties.

On the other hand, although the unemployment rate in British Columbia has increased by 3.5 percentage points in a year to 7.7 per cent in the second quarter of 2009, wages in the region have actually increased by 2.2 per cent. At the same time, consumer confidence has rebounded and most Canadians now believe that the market is expected to turn around, making this the right time to buy. Considering the impending economic recovery, British Columbia, including Vancouver, should see employment and wages rebound. As the region is expected to lead the rebound in the housing activity in Canada next year, Vancouver real estate investments should benefit from the current and emerging economic trends.

In fact, Canadian real estate market—and especially that of Vancouver—should prove attractive to international real estate investors for several reasons. Canada’s economic growth next year will be at least double that expected in the United States and more than quadruple that of Europe. Moreover, the Canadian banking sector, which is ranked by the World Economic Forum as the soundest banking system in the world, has created a sound financial environment in Canada that ensures the security of real estate investments in an otherwise highly volatile global investment environment. Besides, the advent of the 2010 Olympics and the opportunity to showcase Vancouver globally should bode well for residential real estate in the coming year. Therefore, investing in Vancouver’s real estate could be a sound investment strategy for international investors.

In general, prospects for a strong demand for real estate in Vancouver look optimistic. The expected rebound in housing activity, along with an economic recovery, strong financial sector, and the coming 2010 Olympics all bode well for investments in Vancouver’s real estate. Investing in Vancouver properties has proven lucrative so far and will likely continue to be a choice for many local and international investors.

Compare Vancouver Real Estate Market 2008 and 2009

admin — Sat, 03 Oct 2009 21:04:56 +0000

Vancouver real estate market continues growing in 2009. Although the average price for single family home is 5% lower than which of last year, the real estate buying and selling transactions and volume is growing by over 100%.

In this video I review Vancouver real estate market and its stats.

Real Estate Investment in Canada

admin — Sun, 13 Sep 2009 05:07:31 +0000

From the perspective of a property investor, the total property sector in Canada is fully dependent on the development or population growth in a particular area. It also depends on the strength of the investment.
Commercial and residential real estates in Canada offer plenty of opportunities to the property investors.

Alternately, real estate investors cash in on the residential property market of Canada. They do this by beating trends, getting ahead of the market and buying in the fastest growing geographic region, at a time when, the market reaches the peak in that region. Then, investor’s cash in when they swap the assets before the particular geographic market hits a period of stagnation. Based on the latest positive market movements, in some regions, property investors who operated in this manner have received substantial benefits. This is indicative from their annual gains that have reached above 20%.

For real estate investors, Canada has two types of added bonus:

- It has a huge population of wealthy expatriates who either seek retirement or residence in Canada, or take up important employment positions under the skilled worker programs of the Canadian Immigration Department.

- Such immigrants seek properties for resale and rent and bring in a constant flow of “new” money into the property market. This adds to the sustainability of the real estate sector. It also creates a focus on investment in some areas and cities popularly known to such group of people. Extremely active Vancouver real estate market is one of the best example.

Within its borders, Canada has emerging markets. As safe and neutral country, it has changed from political strength to economical strength.

It has registered growth in plenty of business sectors, right from the urban expansion in Canada to the development of commercial and residential real estate sectors of their own.

Here, property investors can target their investments on any one of the developing cities of Canada. They can also purchase commercial or residential property units such as retail units, office space or industrial space.

Alternately, Canada has an expanding and well established tourism sector. It has crept further north and inland, and increased job opportunities especially in tourist accommodation markets and second home markets, in more Canadian towns than ever before.

There is no limit for a property investor in the Canadian real estate market. It depends on what the real estate investor seeks. In case, an investor targets his investments correctly, property sector in Canada supports sustainable income, short term gains and long term growth for that investor.

Real estate investment in Canada is organized and profitable. It is a safe haven for people who want to invest in real estate but could not do so due to the effect of housing crash in the United States. Hence, it is better to take this opportunity and invest in real estate of Canada for long term smart gains.