Tighter lending rules have taken effect
San Francisco, CA -- (SBWIRE) -- 09/28/2012 -- Canadian Real Estate Association has found that only six of 27 local real estate markets saw increases in home sales from July to August.
The association lowered its 2012 and 2013 home sales outlook after sales activity declined in Canada’s biggest markets. Stricter rules on home loans that took effect in July contributed to the drop, the biggest since June 2010. Five of the past six months have seen decreases in sales of previously owned condos and houses.
The association says the declines are part of a national trend. “While we always caution that housing market trends at the national level can and do run counter to trends in many local market, the decline in activity in August was definitely the result of much of the country moving in the same direction,” stated Wayne Moen, president of the real estate association.
The Hamilton and Burlington market was one of the six that recorded August home sales growth. The increase was only 0.4% over the month in Hamilton, but fell 11.3% for the area from August a year ago. The area also recorded a decrease in listings of 3.9% from July to August and a decline of 16.2% from last year.
The dollar value of residential property in Hamilton and Burlington rose 4.9% to $399 million – the area was only one of the six that recorded an annual rise in value. And the average sale price in the area recorded a monthly rise of 13.5% to $364,464 from $321,036.
Experts say Hamilton is undervalued in comparison with the rest of Canada.
“That’s because we have pretty solid immigration numbers, pretty solid employment and a strong economic outlook,” said Cameron Nolan, Hamilton-Burlington Real Estate Board president.
The Hamilton-Burlington area had a sales-to-listing ratio of 72.6%, much higher than the national average of 51% for August.
The real estate association’s chief economist, Gregory Klump, said the area has become a seller’s market. “If the sales-to-listing ratio is between 40 and 60%, that’s a balanced market,” Klump said. “Hamilton is well above that.”
The overall outlook for 2012 is for Canada’s home sales to increase 1.9% to 466,900, but that is down from June’s prediction of 475,800 homes. Sales in 2012 will slide 1.9% to 457,800 homes, the real estate association predicts.
Punta-Cana.us (punta-cana.us) is an online resource for information about real estate in the Dominican Republic. Readers can learn more about buying property in one of the top expat and vacation locations in the Caribbean. More information about real estate Punta Cana, sales and listings in the Dominican Republic can be found at Punta-Cana.us.
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-593-5640 (International)