Single Family Home prices were lower than last month, but still higher than year ago levels. Condo prices, however, declined both on a monthly and annual basis.
Sales were much brisker than last August, posting a nearly 28% increase for SFHs while condo transactions were up 29%. August condo sales were up month-over-month as well.
Single Family Homes
Average price: $453,969
Median price: $402,251
Sales: 1106
Condominiums
Average price:$285,487
Median price:$255,000
Sales: 468
For more in-depth statistics, please visit my website:
SFH Weekly Sales (click to enlarge)
SFH Pending (click to enlarge)
Condo Weekly Sales (click to enlarge)
Condo Pending (click to enlarge)
CIBC World Markets – Provincial Update
August 29, 2011
No province has proven more closely correlated to the US than Ontario…Elsewhere, growth in Alberta and Saskatchewan looks to outpace the national average by a percentage point or so this year and next. Despite the recent pullback in commodity prices, business investment should remain elevated, bolstered by robust corporate profitability.
For Alberta, pipeline development will be a critical ingredient in maximizing its oil sands potential. Consumers remain more enthusiastic, aided by superior job creation and strong wage gains.
Alberta: Housing prices and construction activity, meanwhile, will see less of a correction, with population growth throughout the prairies a plus for longer-term growth.
Ontario: Housing prices have overshot fundamentals, signaling a near-term slowdown in residential construction, but with rates low, a housing crash is not in the cards.
BC: Given soaring home prices, a correction in the housing market remains a serious risk.
Read entire research note here
BMO – The Bottom Line
August 26, 2011
Canada must heed the lessons learned south of the border. While subprime lending has never been as major a factor as in the U.S., we did see CMHA [sic] allow 40-year mortgages with 0% down at one point.
These and other mortgages are a huge contingent liability for Canadian taxpayers and have helped fuel (alongside low interest rates) some of the housing froth in Vancouver and Toronto. Too many households are in homes they cannot afford and would face financial ruin were they to suffer any loss of income or unexpected expenses.
True, delinquency rates at Canadian banks are extremely low, most of the worst loans are government guaranteed and the banks have little exposure. But countless businesses and households, not to mention all taxpayers, remain quite vulnerable, as Governor Carney and Finance Minister Flaherty have repeatedly pointed out. I recommend an article by Derek DeCloet in yesterday’s Globe and Mail, which outlines the issues very cogently.
Read entire research note here
BMO – Can Canadian Consumers Carry That Weight?
September 2, 2011
Lured by low interest rates, Canadian shoppers splurged last year, pulling the economy resoundingly out of recession. However, fatigue is setting in amid rising gas prices and mounting debts, even as other sectors show few signs of picking up the slack. Exporters face weak global demand and a strong currency. Fiscal stimulus is fading and will turn to restraint next year. The hot housing market is starting to cool (not such a bad thing)…
Read the entire research note here