CMHC releases new report on housing in Canada

The 2008 Canadian Housing Observer provides an in-depth picture of housing trends and developments in Canada.

The 2008 Observer, CMHC's flagship publication, reveals 84.6 per cent of urban Canadians were able to access housing that was in good condition, suitable and affordable between 2002 and 2004.

For the majority of the 15.4 per cent of urban Canadians who lived in core housing need, it was temporary. Only 4.6 per cent of urban Canadians lived persistently (all three years) in core housing need.

The Observer also provides analysis of how Canada's housing market developed through 2007, showing it experienced high housing starts, strong sales, double digit price increases and record-level renovation spending.

For more information and facts and figures from the 2008 Observer please visit CMHC's website.



BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Changes to Canadian Mortgages

In an effort to protect and strengthen the Canadian housing market the Department of Finance has made adjustments to the rules pertaining to guaranteed mortgages.

As a result, the Canadian Mortgage and Housing Corporation (CMHC) will no longer be accepting mortgage insurance applications for 40-year amortizations or 100 per cent loan-to-value mortgages on or after October 15, 2008. Those mortgages with a 40-year amortization and the 100 per cent loan-to-value mortgages already insured by CMHC are not affected. CMHC mortgage insurance coverage on these mortgages is good for the entire life of the mortgage.

However, CMHC will continue to offer mortgage loan insurance for amortizations of up to 35 years and up to 95 per cent of the value of the property, and will continue to offer a wide range of innovative products that meet the needs of borrowers.

CMHC will also continue to offer CMHC Flex Down, which offers homebuyers the flexibility of purchasing a home using a wider range of sources for their down payment — including borrowed funds and lender cash-back incentives.

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

10 reasons why you shouldn't worry about the Canadian real estate market

There's been a lot of talk about real estate in the news in recent months. We've heard about falling existing home sales, price depreciation and of course subprime fallout and foreclosures in the United States. Luckily, we live in Canada! Canadian real estate markets are far better positioned than our American counterparts for several reasons.

1. Subprime mortgages represent less than five per cent of our market nationally.
2. Foreclosures occur in about one quarter of one per cent of mortgage transactions in this country.
   
3. Canadians have more equity in their homes.
   
4. We have less debt than our neighbours south of the border.
   
5. Speculation has played little or no role in existing home sales in Ontario.
   
6. The fundamentals of our economy are relatively solid. Of the G8 countries, only Canada is expected to show growth in 2008 and 2009.
   
7. The Canadian banking system is one of the best in the world, relying more on old-fashioned lending than innovative financial products geared toward profit.
8. The Canadian job market is stronger than the U.S., adding more than 200,000 jobs so far this year.
   
9. Interest rates remain favourable.
   
10. Housing values in Ontario major centres didn't experience serious, double-digit price appreciation year-after-year for an extended period. Our markets were characterized by stable, healthy growth.
    

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Toronto Real Estate Board Housing Prices Summary- Aurora September 2008

The September market shows signs of a more balanced market. A total of 6,424 sales took place in September 2008.

Sales of single family dwellings in September, were down about six per cent from the 6,866 sales recorded during September of last year, said Toronto Real Estate Board President Maureen O'Neill. However, the 6,424 sales reported for September 2008 is down just three per cent from the 6,622 figure recorded in September 2006. To keep in perspective, September 2007's 6,866 sales was the second best figure ever recorded for that month.

So how many of those sales took place in the Northern districts? A total of 1,220 sales were reported in 23 Northern districts; and averaged a selling price of $407,424.

Here's a look at the September 2008 statistics for Aurora:

Sales: 57
$Volume: $23,618,900
Average Home Price: $414,367
Average Days on Market: 42
Average List %: 97

Click the links below to see a brief September 2008 summary for:
Bradford
Innisfil
East Gwillimbury
Keswick/Georgina
King
Newmarket

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

New Listing: Great, Detached Family Home in Newmarket

Great Opportunity to own a detached, 4 bedroom, 3 bathroom home centrally located in Newmarket, ON.


Main Floor features:

• Updated windows, furnace, roof and driveway.
  
• Eat-in-Kitchen with walkout to large deck overlooking yard and greenbelt. No neighbours are in the back which provides a tremendous view and relaxing environment.
• Laminate flooring in Living, Dining and Family Rooms.
  
• Fireplace in Family Room.
  
• Laundry and powder room located on main floor.
  
• New berber carpet on stairs and throughout entire upper level of the home.
  
• Master bedroom with Walk-in Closet and 3 piece Ensuite.
  
• Linen Closet and bathroom on upper level.
  
• Spacious basement with above ground windows.
  
• Fenced backyard.
  
• Double Door Garage.

For more details call FREE recorded message: 1-877-960-6026, ext 250 or click here.



BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Luxury home sales remain steady across the country

Luxury home sales have outperformed virtually all other residential price points this year, but activity in the top-end is expected to taper in most major Canadian centres in coming months, according to a recent report released by RE/MAX.

The RE/MAX Upper-End Report, which highlights trends and developments in 15 housing markets across the country for the first seven months of 2008 found Vancouver, Victoria, Regina, Saskatoon, Winnipeg, London, Kitchener-Waterloo, Ottawa, Halifax-Dartmouth, and St.John's all experienced an upswing in sales activity, while declines were noted in Kelowna, Calgary, Edmonton, Hamilton-Burlington and Toronto. Also significant is in all but two markets, percentage increases in sales were greatest in the upper-end when compared to the overall residential marketplace in 2008.

"Given the transition occuring in most residential real estate markets, upper-end sales remain exceptionally strong," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "The market for luxury homes is usually the first to show pressure cracks, but the reverse is actually true this year, with pent-up demand (due to trade-up activity), less speculation, and job transfers all factors contributing to stability in this segment. Click here to read the full report.



BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Balanced market conditions in the GTA

House sales in the Greater Toronto Area decreased during the first half of September, according to the Toronto Real Estate Board. They're down 16 per cent compared to the same period in 2007. While in the 905 region, sales are down 11 per cent.

However, there's no need for anyone to panic about the market. With all of the media reports about the housing crises in the U.S. many Canadians are worried about the real estate market here at home. The reality is that homes are simply taking a little bit longer to sell, but they're still selling! While, it may not be a buyer's market just yet, it's fair to say that the field has leveled.

Home buyers have more options available to them when searching for a home, whereas a year or two ago most home buyers had to buy a house that came on the market immediately because of bidding wars and the potential to lose their dream home.

Real estate definitely has cycles, and a balanced market isn't one to be concerned about. If you're considering putting your home on the market I'd be more than happy to sit down with you and discuss your options in today's market.

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Toronto Real Estate Board Housing Prices Summary- Aurora June 2008

The June market shows signs of a more balanced market. A total of 8,600 sales took place in June 2008.

“Sales were down 18 per cent from the 2007 total of 10,451, which was the best performance ever for that month,”noted TREB President Maureen O'Neill. “Nevertheless, the 8,600 figure is the fifth best June on record, and indicative of an active, healthy market.”

So how many of those sales took place in the Northern districts? A total of 1,697 sales were reported in 23 Northern districts; and averaged a selling price of $430,498.

Here's a look at the June 2008 statistics for Aurora:

Sales: 422
$Volume: $186,017,132
Average Home Price: $440,799
Average Days on Market: 30
Average List %: 98

Click the links below to see a brief June 2008 summary for:
Bradford
Innisfil
East Gwillimbury
Keswick/Georgina
King
Newmarket

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Tarion to create new ombudsman position to handle customer complaints

Tarion, the province's new home warranty program, is creating a new post to deal with customer complaints: Home Buyer Ombuds- person.

"We certainly came to the conclusion that Tarion has to be more open to consumers and has to have someone for them to reach out to," said Tarion's president and CEO Howard Bogach.

Tarion is an independent corporation that administers Ontario's New Home Warranty Plan, which offers protection to new homebuyers who pay a fee.

Bogach, who was appointed by the Tarion board earlier this year, has made it clear he was hired to make the program more open and accountable to warranty holders.

In an interview with the Toronto Star just after his appointment, Bogach said he was considering bringing in an ombudsperson to broker homeowner complaints.

"It is an opportunity for consumers to have a second avenue of assistance," Bogach said in an interview this week.

The ombudsperson will not only mediate homeowner's complaints, but will be asked to suggest any changes in policy or practice that may be needed, Bogach said.

News of the job posting comes just weeks after a stinging 16-page report from provincial Ombudsperson André Marin.

In an interview with The Canadian Press, Marin said the public sees Tarion as a "puppet" of the home building industry and that it is a "chronic underperformer.

...When Marin issued his report last month, the Ministry of Government and Consumer Services and Minister Ted McMeekin were responsible for Tarion. Oversight for Tarion has now been shifted to the Ministry of Consumer and Business Services under Minister Jim Watson.

In his report, Marin said consumers are confused about just how Tarion and the province interact and called on the ministry to "clarify" its role in Tarion's affairs.

"I have concluded that the ministry's failure to clearly set out the nature of its role with respect to new home ownership needs to be remedied immediately," Marin said in his report.

There were 52,332 new homes enrolled in the warranty program in 2007, with some $9 million paid out under the plan. As of last year, a total of 465,116 homes were under warranty.

With files from The Canadian Press

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

New PERKS- Client Appreciation Program

Here we grow again! I'm happy to announce my new PERKS- Client Appreciation Program, a complimentary service that I'll be providing to my valued clients.

This program features a whole range of informational booklets and brochures, a referral business directory of professional trades and services, an annual home evaluation, and a whole host of other helpful information sent out on a monthly basis.

Here at the Dream Home System, we're constantly looking for ways to improve our services. I invite you to visit my website to learn more about the PERKS- Client Appreciation Program.

Also, check out our online referral business directory. My clients, friends, family members or I have used many of these businesses personally, and believe that they can provide you with the quality services that you deserve.


BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Ontario, Ottawa to spend billions on infrastructure

KAREN HOWLETT

Globe and Mail

The federal government announced Thursday that it has inked a deal with Ontario to spend $9.3-billion over seven years in the province on public transit, roads and bridges as part of its plan to maintain and expand the country's infrastructure systems.

The Ontario government has signed on to Ottawa's infrastructure plan, called Building Canada, which will see the Harper government spend $33-billion over seven years on projects across the country.

“That is a historic commitment,” Lawrence Cannon, Federal Minister of Transport, Infrastructure and Communities, said at a news conference in London, Ont. “Substantial infrastructure funding was long overdue in this country.”

Mr. Cannon said Ontario will receive $6.2-billion from the federal government, including $3.1-billion from the Building Canada fund itself, to help the province repair its aging roads, bridges and other infrastructure. The Ontario government will match the Building Canada funding, raising the total investment to about $9.3-billion.

Ontario's share of the overall federal infrastructure pie will total $7.8-billion, including $4.4-billion from the gas tax. The funding arrangement will run until 2014.

Initial priorities include improvements to the Trans-Canada Highway in northwestern Ontario, rural broadband coverage in southern and eastern Ontario and rapid transit in the Kitchener-Waterloo Region.

Ontario is the latest province to reach a so-called framework agreement with Ottawa, which will set out how it will use its share of the funding.

British Columbia was the first province to reach an accord last November. Only three provinces – Alberta, Manitoba and Quebec – have yet to sign deals.

“This deal has been a long time coming, and it further represents a product of long and detailed discussions with our federal counterparts,” said George Smitherman, Ontario Minister of Public Infrastructure Renewal and Energy. “Today, we are celebrating the coming together of two levels of government to produce results for the people of Ontario.”

Mr. Smitherman was also on hand at the news conference, along with Federal Finance Minister Jim Flaherty and his provincial counterpart, Finance Minister Dwight Duncan.

It was the first time Mr. Flaherty has shared the stage with Mr. Duncan since the federal minister began waging a highly public fight with the McGuinty government earlier this year over its management of the Ontario economy.

Mr. Smitherman announced that the province will use $50-million of the federal funding to build a new reservoir and pumping station in London that will provide surrounding communities with a stable supply of clean drinking water. The province is kicking in $50-million for the project.

However, Mr. Smitherman said it will take a little while longer for the province to sign a framework agreement with the federal government for the multimillion-dollar plan to extend the Spadina subway line into the Toronto area's rapidly growing York Region. Ottawa's $697-million contribution to the long-awaited subway extension will come from the Building Canada fund.

Progressive Conservative Leader John Tory applauded his federal cousins today for helping Ontario improve its infrastructure. But he criticized Liberal Premier Dalton McGuinty for taking so long, compared with many other provinces, to reach a deal with the federal government that will allow the province to get access to the funding and get the projects under way.

“I would rather see Mr. McGuinty spending his time and his energy getting an agreement like that as opposed to launching broadsides at the federal government,” he said. “So far, he seems more interested in the broadsides.”

With a file by The Canadian Press

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Real estate heavyweight leaves $8 billion to dogs

By The Associated Press

Animal welfare groups must be panting.

Leona Helmsley reportedly directed that her fortune - up to $8 billion - be used for the care and welfare of dogs.

The New York Times reported Wednesday that the bequest was included in a so-called mission statement for the estate of the real estate magnate, who died last August.

It's not certain that all the money will go to the dogs, however. The mission statement wasn't formally incorporated into Helmsley's will or trust documents.

Two people who saw the statement told the Times the document also says the estate trustees may use their discretion in distributing the money.

They could, for instance, decide to spend the money for animal rescue groups, veterinary schools or research on canine diseases.

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

FINTRAC's new consumer publication- What you need to know

Changes to Canada's anti-money laundering legislation, will come into effect on June 23, 2008.

These changes include new requirements for real estate brokers and salespersons, one of which is to obtain identification from clients during financial transactions.

FINTRAC has published a consumer publication- What you need to know- to help consumers understand why you are now required to show identification.

The publication answers the following questions:

• Why do I have to show ID when I've been a customer here all my life?
• What type of ID do I have to provide?
• What other information may I be asked to provide?
• Where can I get more information?

If you'd like to get printed copies of this publication you can send a request to publications@fintrac.gc.ca


BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Forest Hill mansion sells for $2 million over asking price!

By Jenny Wagler, National Post

A Forest Hill mansion has been sold for more than $2-million over the asking price, even as the city’s real estate market otherwise continues to lose a little of its heat.

Melinda Rogers, Rogers Communications’ senior vice-president of strategy and development, paid $11.126-million to buy 8 Old Forest Hill Rd.

The home, which had a $9-million asking price, is down the road from family patriarch Ted Rogers.

The property behind the “sold” sign stretches 159 by 360 feet, and the stately stone house has 15 rooms, including six bedrooms and six bathrooms. It comes with a pool, a circular driveway, coach house and famous neighbours.

Grammy Award-winner Nelly Furtado lives down the block. So does gold baron and philanthropist Peter Munk, founder of Barrick Gold Corporation.

The home belonged to philanthropist Helen Phelan. Ms. Sversky calls it a “landmark estate,” adding “these houses do not come up.”

This, she said, made the property difficult to appraise, a possible factor in the final selling price.
Maureen O’Neill, president of the Toronto Real Estate Board, said the Forest Hill sale is ‘‘right up there’’ among the highest ever above-asking home sales.“It was a beautiful house ... renovated to the hilt,” she said. ‘‘It’s just one great big estate, a generous lot in the heart of Old Forest Hill.’’

Ms. O’Neill said fewer houses are going over asking than during last year’s record-setting spree.
The Old Forest Hill Road house — and a Riverdale home that sold last month for $929,000, $150,000 over asking — are anomalies, she said. In the current real estate climate, bidding wars remain the exception and not the rule.

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Toronto Real Estate Board Housing Prices Summary- Aurora April 2008

April sales were moderate, however prices continue to appreciate. With 8,762 transactions recorded during April, the overall Greater Toronto Area was down 7 per cent from the 9,452 sales last April.

"The market continues to experience a supply and demand situation and to-date it remains a sellers market," said TREB President Maureen O'Neill.

So, how many of those sales took place in the Northern districts? A total of 1,768 sales were reported in 23 Northern districts; and averaged a selling price of $429,262.

Here's a look at the April 2008 statistics for Aurora:

Sales: 80
$Volume: $37,483,500
Average Home Price: $468,544
Average Days on Market: 26
Average List %: 98

Click the links below to see a brief April 2008 summary for:

Bradford
Innisfil
East Gwillimbury
Keswick/Georgina
King
Newmarket

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Predictions of the boom's demise may be premature

You have probably heard by now. The sky is falling. Bummer.

The first swath of housing market data for 2008 hit the street over the last couple of weeks. All tallied up, it has been spun by the doom-sayers to indicate that not only is the great Canadian housing boom over, it's also a harbinger of a coming recession. I'm not exactly sure how some market experts — particularly those employed by real estate brokerages — thought that the double-digit percentage increases of the last few years in new home sales, resales and prices could be sustainable in the long term in any way, but there you go.

A lot of economists and analysts were predicting a tightening or correction of the housing market going back to the fall of 2001, after the Sept. 11 terrorist attacks.

It turns out that not only were they wrong, that was when the housing activity really took off as the middle-class stopped piddling around with the stock market and decided to invest in something a little more stable … like flipping houses.

That is an exaggeration, of course. Only a small fraction of home buyers treated their purchases as investment vehicles to try and turn a quick and dirty profit based on quick and dirty renovations. But it would be a mistake to assume there was no manic speculative component to the market, which is never good when trying to establish a stable foundation.

The professional market watchers who did predict a slowdown or flattening grew so tired of being proven wrong again and again that they stopped trying to introduce reason based on data into the dialogue on the housing market. Who can blame them? Who wants to be the canary in the coal mine? But with the pendulum now, finally, swinging back, is the market really declining as badly as the data indicate? My fearless prediction is … wait for it … it's too early to say.

Toronto has fared better than most other Canadian cities in the Great Real Estate Correction of Early 2008. Residential sales here dropped 13.4 per cent in the first quarter, compared with the fourth quarter of 2007, according to the Canadian Real Estate Association. But in Calgary residential sales dropped 35.9 per cent and in Edmonton they dropped 29.8 per cent, with new listings going up by 29.8 per cent and 52.1 per cent, respectively. All of those Tim Horton's cashiers making $14 an hour in Ed Stelmach's booming petro-economy might want to take note.

When it comes to newly constructed houses, the price data indicate that it's a little early to hail the end of the boom.

Throughout Greater Toronto, the average cost of a new single home was $520,504 in the first two months of 2008, up 8.7 per cent from $478,768 in the same period in 2007, according to Canada Mortgage and Housing Corp.

The biggest price rise occurred in Durham Region, where the average single price rose 9.1 per cent to $403,993 from $370,206.

But York Region, historically a region with steady price growth in new housing, reported a 1.3-per-cent decrease in the price of an average single for the first two months of 2008, down to $501,270 from $507,699 in the same period in 2007.

Several factors weigh heavily in where the new housing market is heading in Toronto in these uncertain times. The biggest, as always, is interest rates remaining historically low.

The other is that the building of new low-rise housing over the last two years has slowed down due to labour costs and new regional planning regulations affecting land supply in the outer suburbs, while high-density building like condominiums has taken off.

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Boomers plan to stay put when they retire

Sixty per cent of boomers would prefer to stay in their current community when they retire, according to RBC’s 15th annual home ownership study.

“Even though this generation of boomers will tell you they have plans to travel abroad and pursue a more active lifestyle, many still want to keep their current home in retirement,” says Catherine Adams, vice-president, RBC Royal Bank. “Having a home base that is familiar and comfortable and where they know their neighbours and their community is important to them.”

To make it possible to stay right where they are, just over half of the boomers surveyed intend to do some remodeling, while 19 per cent plan on undertaking some major renovations. As well, 24 per cent are looking to purchase a second property, or vacation house.

“We also found that boomers are not attracted to ‘seniors-only’ communities, as over three-quarters find it appealing to retire in an area where there is a mix of younger and older residents, perhaps because most of Canada’s boomers don’t see themselves as old,” says Adams.

Of the 40 per cent of boomers who do not plan to stay put in retirement, the type of communities they would prefer to move to fall into four distinct categories:

Camp 60 Plus: 29 per cent have an affinity to retire in a close-to-nature community centred on outdoor activities.

Click here to read the rest of this article.



BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Toronto Real Estate Board Housing Prices Summary - Aurora March 2008

March sales were moderate as low inventory levels kept sales brisk, but well off record levels. With 6,631 transactions recorded during March, the overall Greater Toronto Area resale market was down 22 per cent from the 8,518 sales of March 2007.

So how many of those sales took place in the Northern districts? A total of 1,390 sales were reported in 23 Northern districts; and averaged a selling price of $424,742.

Here's a look at the March 2008 statistics for Aurora:

Sales: 64
$Volume: $30,692,103
Average Home Price: $479,564
Average Days on Market: 30
Average List %: 98

Click the links below to see a brief March 2008 summary for:
Bradford
Innisfil
East Gwillimbury
Keswick/Georgina
King
Newmarket

BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

Housing starts show surprising strength

The momentum in Canada's new housing sector still isn't showing any sign of fading, as figures showed another surprisingly strong month for housing starts in March.

The annualized rate of housing starts was 254,700 units, adjusted for seasonal variations. That's down slightly from 255,600 units in February, Canada Mortgage and Housing Corp. said Tuesday.

March's figure easily topped the expectations of economists, who had been forecasting housing starts to come in at 229,000.

Starts of single homes in urban areas hit an annualized rate of 80,500 last month, a decline from 82,900 in February, while starts of multiple-unit buildings, such as condominiums, rose to 141,000 from 139,500.

"The high level of starts posted in February continued in March, thanks to the multiple segment and particularly condominium starts, which registered a significant rise in Alberta," said Bob Dugan, chief economist at CMHC's market analysis centre.

"Nevertheless, the single-detached component, which is usually a strong trend indicator, decreased slightly. This is consistent with our view that the housing market will moderate gradually throughout 2008," Dugan said.

The annual rate of urban starts slipped 2.3 per cent in Ontario, 16.8 per cent in Quebec and 37.1 per cent in British Columbia. Urban starts grew by 75 per cent in Atlantic Canada and 52.5 per cent in the Prairie region.

"Residential construction in Canada isn’t letting up despite widespread expectations to the contrary," said Robert Hogue of BMO Nesbitt Burns.



BACK TO ... WWW.THEDREAMHOMESYSTEM.COM

RBC survey points to home buying slowing down

A new RBC study indicates a potential shift in the Canadian home buying landscape. According to RBC Royal Bank's 15th Annual Homeownership Survey, significantly fewer Canadians intend to buy a home within the next two years.

Overall intentions to purchase a home have dropped by five percentage points to 23 per cent. The intensity to buy has also decreased with those very likely to buy slipping from nine per cent in 2007 to seven per cent in 2008, the lowest level since the survey was started 15 years ago.

However, the number of Canadians who would buy now, rather than wait until next year is still strong at 52 per cent. This has dropped from 58 per cent in 2007, suggesting a potential slowdown in the housing market. While the majority of Canadians (85 per cent) continue to believe purchasing a home is a good investment, the number is down from 90 per cent in 2007. But much stronger than it was 10 years ago (76 per cent), the survey says.

“Considering the flurry of activity we’ve seen over the last few years, this year’s results definitely signal a change,” says Catherine Adams, RBC Royal Bank vice-president. “While those very likely to buy a home might be at its lowest level in over a decade, we need to keep in mind that the overwhelming majority of Canadians still believe purchasing a home is a good investment. Canadians continue to be generally very optimistic about our housing market and it’s merely the degree of optimism which is down from last year.”


BACK TO ... WWW.THEDREAMHOMESYSTEM.COM