Vancouver, BC – December 14, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the province remained relatively unchanged in November compared to the same month last year. A total of 5,640 units were sold last month compared to 5,647 units in November 2010. The average MLS® residential price was up 1.1 per cent to $529,140 in November compared to the same month last year.

"BC home sales continued to gain ground in November,” said Cameron Muir, BCREA Chief Economist. “After waning during the first half of the year, consumer demand has steadily increased since the summer months, bringing home sales within seven units of the November 2010 level."

"Low mortgage interest rates remain a key driver in the housing market, helping to maintain affordability and purchasing power,” added Muir.

Year-to-date, BC residential sales dollar volume increased 15.5 per cent to $41 billion, compared to the same period last year. Residential unit sales increased 3.2 per cent to 72,632 units, while the average MLS® residential price rose 11.9 per cent to $563,991 over the same period.

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For more information, please contact: 

BCREA represents 11 member real estate boards and their approximately 18,000 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe).

To demonstrate the profession's commitment to improving Quality of Life in BC communities, BCREA supports policies that encourage economic vitality, provide housing opportunities, respect the environment and build communities with good schools and safe neighbourhoods.

For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada's real estate boards to ensure maximum exposure of properties listed for sale.

Home Sales Climb Higher Outside Vancouver

Vancouver, BC – November 15, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential unit sales in the province rose 6.5 per cent to 5,865 units in October compared to the same month last year. The average MLS® residential price was up 2.6 per cent to $535,695 last month compared to October 2010.

"BC home sales rose three per cent in October compared to September on a seasonally adjusted basis," said Cameron Muir, BCREA Chief Economist. "While consumer demand in Vancouver edged lower last month on a year-over-year basis, strong increases were recorded in the Fraser Valley, Kamloops, Kootenay, the North and on Vancouver Island."

"Total active residential listings in the province declined by 3,360 units in October from September. However, active listings were up 6.9 per cent from October 2010," added Muir. "Market conditions remained slightly in favour of home buyers last month."

Year-to-date, BC residential sales dollar volume increased 16.8 per cent to $38 billion, compared to the same period last year. Residential unit sales increased 3.5 per cent to 66,922 units, while the average MLS® residential price rose 12.9 per cent to $566,925 over the same period.

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As was universally anticipated, the Bank of Canada opted to hold its target overnight rate at 1 per cent this morning.  Ongoing uncertainty in the Euro-zone continues to weigh heavily on the Bank's outlook. In its statement accompanying the interest rate decision, it was noted that the bank is now projecting a contained Euro-crisis, but also a brief recession in the Euro-area due to ongoing deleveraging and fiscal austerity. The Bank also expects continued weakness, but no recession, in the United States through the first half of 2012 before a resumption of stronger growth. Given various challenges in the global economy, the Bank of Canada trimmed its outlook for Canadian economic growth to 2.1 per cent in 2011, 1.9 per cent in 2012 and 2.9 per cent in 2013 which is in line with our own forecast. On inflation, the Bank now expects slack in the economy to persist longer than originally forecast, leading to a closing of the output gap at the end of 2013. This implies softer than expected inflation in coming quarters, with consumer price growth moderating before returning to the Bank's 2 per cent target by the end of 2013.

Overall, this morning's statement shows a very cautious Bank of Canada that is unlikely to make any significant movements on interest rates over the next two to three quarters. Further monetary tightening will be highly contingent on a brighter growth outlook in the United States and a credible solution to the Euro sovereign debt crisis. Therefore we expect the Bank of Canada to remain on the sidelines through the end of 2011 and the first half of 2012. 

For more information, please contact: 

Cameron Muir Brendon Ogmundson Chief Economist Economist Direct: 604.742.2780 Direct: 604.742.2796 Mobile: 778.229.1884 Mobile: 604.505.6793 Email: cmuir@bcrea.bc.ca Email: bogmundson@bcrea.bc.ca

BCREA represents 11 member real estate boards and their approximately 18,000 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe).

Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.

VANCOUVER, Aug. 23, 2011 /CNW/ - Nearly six-in-ten B.C. repeat buyers are moving on to larger or more luxurious homes - and they're moving sooner than expected.  In fact, the TD Canada Trust Repeat Home Buyers Report, which surveyed Canadians who recently bought or intend to buy a home that is not their first, found that three-in-four British Columbians are moving earlier than planned.  More than half (51%) had no intention of moving but now find themselves on the house-hunt again and 22% thought they would move again but not this soon. Not ones to settle, B.C. residents are experienced movers; they are the most likely in the country to have owned more than four homes in their lifetime (39% versus 29% nationally).

"Our research indicates that British Columbians aren't staying in one home too long," says Barry Rathburn, Manager, Residential Mortgages, TD Canada Trust. "There are costs associated with a move, so I'd recommend that people explore all of their options before making the decision to change homes.  It might be more affordable to renovate and make your current home work for you."

The top features British Columbians felt they compromised on when they purchased their previous home that they are not willing to budge on this time is the number of bedrooms (34%).  Other compromises that they won't make again include price (30%), features of the home (30%), layout of the home (28%) and number of bathrooms (26%).

"If you are dissatisfied with something like the layout or features of your home, a renovation can be a convenient option to save the hassle and expense of moving. A Home Equity Line of Credit will allow you to use the equity you've built in your home to finance the renovation.  Further, if you do ultimately decide to sell, the renovation could increase your resale value," says Rathburn.

British Columbians are among the least likely to have considered a Home Equity Line of Credit (HELOC) (37% versus 50% nationally).  Of those who would consider this financing option, nearly half (47%) say they would use it for the purposes of a renovation, but nearly as many (44%) would like to have it simply as a cushion. Thirty-nine percent would use the line of credit to invest.

Timing is everything: Canadians think it's a good time to buy - and to sell

B.C. buyers are the most likely in the country to say investment opportunities (26% versus 21% nationally) and market conditions (28% versus 21% nationally) played a factor in their decision to buy another home. This is a significant increase over 2010 when 21% said investment opportunities affected their decision to buy and 15% said market conditions. The large majority (81%) plan to sell their current home and four-in-five expect to sell at or above asking price (70% versus 62% in 2010).

Among those who have purchased a second home and do not plan to sell their previous home, more B.C. buyers this year said they will keep the first home as a rental property (54% versus 48% in 2010). They are also more likely this year to say the new home they're buying will be a vacation home (15% versus 10%) or that that a family member will be moving into their previous home (15% versus 3%).  Three in ten buyers say they will stay in their current home and the new home they buy will be a rental property.

"Buyers should keep in mind that if they are expecting to sell above asking price, it's likely they will need to also buy at above asking price," says Rathburn. "A home is, obviously, a very big purchase - especially if you will not be selling your previous home to put towards the cost. A mortgage expert at your bank can walk you through your financing options and show you strategies and products that may save you money and provide flexibility over the course of your mortgage."

Decisions, decisions! B.C. sellers know they have options but they haven't thought about them

The TD Canada Trust Repeat Home Buyers Report showed that 61% of B.C.'s repeat buyers have a mortgage on the home they are moving from and 60% will take out a mortgage on their new home.

In 2010, nearly one-in-five (18%) British Columbians who planned to sell their home didn't know they had options when it came to their mortgage.  This year, that number decreased to 14%.  Still, although they are aware of their options, nearly half (46%) haven't considered what they will do with their mortgage. Thirty-eight percent of sellers say they will bring their mortgage with them.  Only 2% say they will use it as a selling feature.

"It's just as important to consider your mortgage options as a seller as when you are buying. You may be overlooking your mortgage as an important selling feature of your home or you may be able to save money by keeping your low rate and bringing your mortgage terms with you. Talk to an expert to find out what option might work for you," says Rathburn.

About the 2011 TD Canada Trust Repeat Home Buyers Report

Results for this study were collected through a custom online survey conducted by Environics Research Group. A total of 1,025 completed surveys, including 131 in B.C., were collected between  June 16-28, 2011 of people who have either purchased a home that was not their first home within the past 24 months, or intend to purchase a home that is not their first home within the next 24 months.

About TD Canada Trust

TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, to credit protection and travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as in over 1,100 branches - most open 8 'til late and many now open Sunday. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.

For further information:

Sinead Brown / Liz Christiansen

Paradigm Public Relations

416-203-2223

OTTAWA — A much anticipated correction in the Canadian housing market is not in the cards, according to a report by the Canada Mortgage and Housing Corp.

In its third-quarter market outlook, the nation housing agency forecasts that Canada's housing market will ease slightly but "remain steady" this year and next.

"Housing starts have been strong in the last few months, but are forecast to moderate closer in line with demographic fundamentals," Mathieu Laberge, deputy chief economist for CMHC, saiid Wednesday. "Despite recent financial uncertainty, factors such as employment, immigration and mortgage rates remain supportive of the Canadian housing sector."

In fact, CMHC revised up its outlook for 2011 housing starts to 183,200 units from 179,500 in its second quarter report. It forecasts the number will climb in 2012 to 183,900 units, slightly lower than its second-quarter forecast of 185,300.

In 2010, there were 189,930 housing starts.

CMHC also forecasts existing home sales will total 446,700 units in 2011 — the same level as in 2010 — and rise "modestly" to 458,000 units in 2012.

What’s the trick to a better mortgage rate?

That’s what folks at the Bank of Canada (BoC) wanted to know.

It led them to undertake an extensive study on mortgage discounting. A draft of that study was released this month and below are its conclusions.

All quotes that follow originate from the paper’s authors: Jason Allen, Robert Clark and Jean-François Houde.

According to their research, the Canadians who get the best mortgage rates are those who:

1. Bargain

• Research proves that bank profits “are significantly higher in haggle environments.” As a result, banks prefer not to put all of their cards on the table.
• This leads to “price discrimination” whereby banks give better deals to skilled negotiators and well-informed borrowers, and stick it to people who don’t watch out for themselves.

2. Have larger mortgages

• “…since few negotiate the renewal of their mortgage…(this) provides lenders with an incentive to attract consumers with larger loans who have large outstanding balances at the time of renewal.”

3. Use a broker

• The report states that brokers lower the “search costs” of getting multiple quotes. Multiple quotes (lower search costs) are strongly correlated with lower rates.
• “Over the full sample the average impact of a mortgage broker is to reduce rates by 17.5 basis points.”  That’s ~$1,670 of interest savings on a typical $200,000 mortgage over five years.
• Bank “mortgage specialists offer convenience to consumers, although they do not reduce search costs. This is because they work for one lender only.”

4. Do significant non-mortgage business with a lender.

• “Branch managers have an incentive to offer larger discounts to consumers…that are, or will be, more profitable to the bank.”

5. Have more equity

• Those who put the minimum down (e.g., 5%) “pay higher rates than other borrowers—about 12 basis points more” than those with LTVs below 85%.

6. Are new clients

• “…new clients receive larger discounts than existing clients, on the order of 10 basis points.”
• The authors state that research by Oxford professor, Paul Klemperer, suggests that “consumer switching costs” (i.e., the time, uncertainty and expense of changing lenders) provide banks with “market power” over existing customers.

7. Use smaller lenders

• “We conclude that the larger a bank’s market share, the higher are the rates that it can charge to borrowers.”
• “…Borrowers who are new clients at one of the Big 8 banks receive less of a discount than borrowers who are new clients elsewhere.”

8. Are financially capable

• BoC: “…poorer borrowers may face greater levels of price discrimination when bargaining in person at the branch than they do when transacting through a broker.”

9. Have better credit

• “Financial institutions…offer better rates to high credit score consumers.”

There are, of course, other factors that impact one’s mortgage rate. Moreover, there are exceptions to the findings above. As one example, not all bank reps are uncompetitive. We know some excellent mortgage specialists that are highly competitive—meaning they’re within 10 basis points of the best industry rate most of the time. (Mind you, as this Bank of Canada report concludes, that is not typical.)

If you’d like to read more, here’s the full study: Discounting in Mortgage Markets. (The BoC has published it as research in progress to invite technical feedback before journal publication.)

See the top 10 most livable cities in the world, according to the latest rankings.

What about the 10 least livable cities in the world? Take a look at the bottom of the rankings here.

Vancouver topped the list of the world's most livable cities for the fifth straight year, while Melbourne claimed second place from Vienna and Australian and Canadian cities dominated the list's top 10 spots.

In the annual survey by The Economist Intelligence Unit, the Canadian West Coast city and 2010 Winter Olympics host scored 98 per cent on a combination of stability, health care, culture and environment, education, and infrastructure -a score unchanged from last year.

It has topped the list from 2007. Although Melbourne since the Austrian capital for a silver medal, there was no other major change near the top of the list of 140 cities worldwide. Auckland, N.Z., came in 10th.

"Mid-sized cities in developed countries with relatively low population densities tend to score well by having all the cultural and infrastructural benefits on offer with fewer problems related to crime or congestion," Jon Copestake, editor of the report, said in a statement.

Pittsburgh was the top U.S. city with 29th place -just ahead of Honolulu -while Los Angeles moved up three places to 44th and New York held onto the 56th spot. London moved up one place to 53rd while Paris came in at No. 16.

The top Asian city was Osaka at No. 12, tying Geneva, Switzerland, and beating out the Japanese capital of Tokyo, which came in at 18.

Beijing, capital of the world's most populous nation and No. 2 economy, straggled in at 72.

Harare, capital of Zimbabwe, once again claimed the worst position with a rating of 37.5 per cent, narrowing beating out the Bangladesh capital of Dhaka.

The Economist Intelligence Unit survey ranks cities based on 30 factors such as health care, culture and environment, and education and personal safety.

Meaning Canada could welcome large groups of tourists - instead of just individuals. 

It's good news for places like Stanley Park according to Board chair Aaron Jasper.

"So when people are coming to Stanley Park, letting them know that there's this other place called Queen Elizabeth, where there's this beautiful conservatory, you should go check that out... or while you're here go check out the Van Dusen gardens. Our task will be to leverage the popularity of places like Stanley Park, to get these visitors to go and see some of the other wonderful attractions that we have here in the city of Vancouver."

China has one of the fastest growing outbound tourism markets in the world.