Housing market warning
'Could be softening': Royal hints at peak as CMHC OKs 30-year mortgages
Garry Marr, Financial PostPublished: Tuesday, March 07, 2006
Royal Bank of Canada warned yesterday that the country's robust housing market may be slowing, adding its voice to a chorus of commentators saying the market has peaked.
The bank reported in its annual home ownership survey that buying intentions are at their lowest levels since 2000, a sign the "market could be softening." A poll conducted for the bank by Ipsos-Reid found only 10% of respondents say they are very likely to buy a home in the next two years -- down from 13% a year earlier.
"This year's results are a definite change from what we witnessed over the last five years," said Catherine Adams, Royal Bank's vice-president of home equity financing. "The intention to buy is still evident, but the intensity to do so is nowhere near as great."
A Statistics Canada report yesterday saw a sharp drop in construction intentions. The federal agency reported builders applied for $3.5-billion worth of residential permits in January, a 21.4% drop from a month earlier. Economists noted single-family home construction intentions continued to rise in January.
Most economists are predicting a pullback in new home construction and existing home sales in 2006, after new home starts set a record last year while existing home sales reached their second-highest level in 17 years.
In the face of these predictions of a slowdown in housing, Canada Mortgage and Housing Corp. -- the Crown corporation that monitors housing and insures Canadian mortgages -- provided some new fuel to the market.
In an announcement issued on a Saturday, CMHC said last week it will allow Canadians to amortize their mortgages over 30 years rather than the traditional 25 years. The effect will be lower monthly payments, making it easier for first-time homebuyers to get into the real-estate market.
It's unclear whether CMHC made the move to provide a boost to the market or for competitive reasons as it battles with privately held Genworth Financial Mortgage Insurance Company Canada (formerly known as GE Capital Mortgage Insurance) for control of the insurance market.
"I think they are testing the waters," said Benjamin Tal, senior economist with CIBC, about the new 30-year amortization.
Mr. Tal said the change will help offset expected increases in mortgage rates, based on monthly payments. "The fear is more low-quality mortgages will come into the market," he said, adding the CMHC policy is indicative of a market on its last legs. "You want to get the last wave of homebuyers before this boom is over."
Mr. Tal said the move by Canadian financial institutions into sub-prime mortgages is another sign the market is near its peak.
Toronto-Dominion Bank and Bank of Nova Scotia have both made acquisitions to get into the sub- or near-prime mortgage and auto-lending market.
"The activity in the sub prime is an example of the market being at or near the peak. It always happens near the end of the real estate market," said Mr. Tal.
In the real estate world, it's full steam ahead with few worries about a pullback, let alone a crash. "We've had a great two months already this year," said Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada.
Friday, March 03, 2006
Does Your Real Estate Agent Need to be Tech Savvy?
The National Association of Realtors’ (US) latest buyer-seller survey brings to light an interesting thing about buyers and real estate technology: people really expect their agent to know technology and use it to help them find a home. 
The survey points out that 40% of buyers want their agents to have skills with real estate technology.
I bet if you were a fly on the wall in the homes of a few buyers, you’d find out that the number is actually much higher.
Why?
Because before a buyer works with a real estate agent she expects to be good with technology, she has to find him.
While many people get referrals from friends and family, there are a lot of people that don’t know where to start when looking for an agent.
And if anyone 35 years old or younger needs to find a real estate agent, I can tell you exactly where they will go first: the internet. That’s where the expectation that an agent knows what they are doing around technology jumps from 40% to 100%.
In the end, the overriding concern of buyers is that their agent help them find their dream home. Their dream is more important to them than the agent's knowledge of the market, negotiating skills or technology skills.
The survey points out that 40% of buyers want their agents to have skills with real estate technology.
I bet if you were a fly on the wall in the homes of a few buyers, you’d find out that the number is actually much higher.
Why?
Because before a buyer works with a real estate agent she expects to be good with technology, she has to find him.
While many people get referrals from friends and family, there are a lot of people that don’t know where to start when looking for an agent.
And if anyone 35 years old or younger needs to find a real estate agent, I can tell you exactly where they will go first: the internet. That’s where the expectation that an agent knows what they are doing around technology jumps from 40% to 100%.In the end, the overriding concern of buyers is that their agent help them find their dream home. Their dream is more important to them than the agent's knowledge of the market, negotiating skills or technology skills.
Looking for someone who listens and uses all available technology? Start today by;
Calling me toll free at 1-877-478-9600 or
e-mail me at lorne@lornetuplin.com or
fill in the daily listing inquiry form
and lets get started!
Check out my web site at www.lornetuplin.com
Sea Breeze Power Corp.: Vancouver Island Cable
Regulatory Application Withdrawn
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 2, 2006) - Sea Breeze Power Corp. (TSX VENTURE:SBX), on behalf of its affiliated subsidiary, Sea Breeze Victoria Converter Corporation ("Sea Breeze Victoria") announces its decision to withdraw its application for a Certificate of Public Convenience and Necessity ("CPCN Application") to construct a 550 MW direct current submarine transmission cable between Greater Vancouver and Greater Victoria on Vancouver Island, which is presently before the British Columbia Utilities Commission. The Vancouver Island Cable CPCN Application was originally filed on September 30, 2005.
Sea Breeze Victoria's decision to withdraw its CPCN Application followed a ruling by the Commission allowing BC Hydro and Power Authority to file new evidence that indicated that a capital structure of 100% provincially guaranteed debt must be utilized for a competing transmission proposal submitted by BC Hydro's affiliated transmission utility, BC Transmission Corporation, when comparing it to Sea Breeze Victoria's Vancouver Island Cable proposal.
Although the Commission decided to allow BC Hydro to present the evidence, it acknowledged the significance to Sea Breeze Victoria of the late filing of the evidence and, accordingly, presented several options to Sea Breeze Victoria.
Sea Breeze Victoria accepted the offer presented to it by the Commission to withdraw its CPCN Application and to seek an order for costs at a level beyond those established in the Commission's Intervener Funding Guidelines. In that costs application, Sea Breeze Victoria will be seeking full indemnification for all of its costs in bringing forward the CPCN Application for the Vancouver Island Cable. Further development work on the US$300 million project has been suspended.
Prior to the filing of the CPCN Application for the Vancouver Island Cable, Sea Breeze Victoria had been granted formal Intervenor status in the proceedings of BC Transmission Corporation's application.
Sea Breeze Victoria will continue its participation within the public hearing process as an active intervener opposing the issuance of a CPCN for BC Transmission Corporation's proposal, which proposes high voltage alternating current transmission cables on a right-of-way adjoining a number of residential properties.
Sea Breeze Victoria will also vigorously continue its participation within the process with regard to evidence that a technologically and environmentally superior as well as a more cost-effective solution for reinforcing reliability of Vancouver Island's transmission system would be construction of the Juan de Fuca Cable.
The Juan de Fuca Cable, proposed to transmit 550 MW also using high voltage direct current technology, would connect Greater Victoria, British Columbia with Port Angeles, Washington.
As an international transmission line, the Juan de Fuca Cable presently has a Draft Environmental Impact Statement under review by the United States Department of Energy, and a CPCN application under review by the National Energy Board of Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
Paul B. Manson, PresidentThe TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.
Regulatory Application Withdrawn
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 2, 2006) - Sea Breeze Power Corp. (TSX VENTURE:SBX), on behalf of its affiliated subsidiary, Sea Breeze Victoria Converter Corporation ("Sea Breeze Victoria") announces its decision to withdraw its application for a Certificate of Public Convenience and Necessity ("CPCN Application") to construct a 550 MW direct current submarine transmission cable between Greater Vancouver and Greater Victoria on Vancouver Island, which is presently before the British Columbia Utilities Commission. The Vancouver Island Cable CPCN Application was originally filed on September 30, 2005.
Sea Breeze Victoria's decision to withdraw its CPCN Application followed a ruling by the Commission allowing BC Hydro and Power Authority to file new evidence that indicated that a capital structure of 100% provincially guaranteed debt must be utilized for a competing transmission proposal submitted by BC Hydro's affiliated transmission utility, BC Transmission Corporation, when comparing it to Sea Breeze Victoria's Vancouver Island Cable proposal.
Although the Commission decided to allow BC Hydro to present the evidence, it acknowledged the significance to Sea Breeze Victoria of the late filing of the evidence and, accordingly, presented several options to Sea Breeze Victoria.
Sea Breeze Victoria accepted the offer presented to it by the Commission to withdraw its CPCN Application and to seek an order for costs at a level beyond those established in the Commission's Intervener Funding Guidelines. In that costs application, Sea Breeze Victoria will be seeking full indemnification for all of its costs in bringing forward the CPCN Application for the Vancouver Island Cable. Further development work on the US$300 million project has been suspended.
Prior to the filing of the CPCN Application for the Vancouver Island Cable, Sea Breeze Victoria had been granted formal Intervenor status in the proceedings of BC Transmission Corporation's application.
Sea Breeze Victoria will continue its participation within the public hearing process as an active intervener opposing the issuance of a CPCN for BC Transmission Corporation's proposal, which proposes high voltage alternating current transmission cables on a right-of-way adjoining a number of residential properties.
Sea Breeze Victoria will also vigorously continue its participation within the process with regard to evidence that a technologically and environmentally superior as well as a more cost-effective solution for reinforcing reliability of Vancouver Island's transmission system would be construction of the Juan de Fuca Cable.
The Juan de Fuca Cable, proposed to transmit 550 MW also using high voltage direct current technology, would connect Greater Victoria, British Columbia with Port Angeles, Washington.
As an international transmission line, the Juan de Fuca Cable presently has a Draft Environmental Impact Statement under review by the United States Department of Energy, and a CPCN application under review by the National Energy Board of Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
Paul B. Manson, PresidentThe TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.
Real Estate Sales - February
Real Estate Sales Surge in February Prices Remain Stable
Sales of homes and other properties surged ahead in February, recording a 32% increase over January’s sales. There were 658 sales of homes and other properties through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®) in February, up from 496 sales in January. Sales last month were very close to the 662 sales in February of last year.
Victoria Real Estate Board President, Scott Kendrew, notes that there are now more properties available for sale. "In February, there were 2,320 properties of all kinds available for sale - that’s 10% higher than in February of last year and helps maintain stability in the market."
Prices, meantime, remained steady. The average price for single family homes in Greater Victoria last month was $492,483; the average for the last six months was $486,699. The median price for single family homes at $428,450 was substantially lower than the average. The average price for all condominiums sold in February was $253,660; the average for the last six months was $263,550. The median was again lower at $232,000. The average price for townhomes in February was $344,325; the average for the last six months was $354,636 and the median last month was $331,000.
Kendrew notes that in February there were 12 single family homes that sold for over $1million and three condominiums that sold for over $700,000 but the market continues to offer a wide choice of price options to buyers. "Over 35% of single family homes sold for under $375,000 last month and nearly one third of all condominium sales were for less than $200,000."
MLS® sales last month included 359 single family homes, 166 condominiums, 62 townhomes and 14 manufactured homes.
Statistics courtesy of the Victoria Real Estate Board
Sales of homes and other properties surged ahead in February, recording a 32% increase over January’s sales. There were 658 sales of homes and other properties through the Victoria Real Estate Board’s Multiple Listing Service® (MLS®) in February, up from 496 sales in January. Sales last month were very close to the 662 sales in February of last year.
Victoria Real Estate Board President, Scott Kendrew, notes that there are now more properties available for sale. "In February, there were 2,320 properties of all kinds available for sale - that’s 10% higher than in February of last year and helps maintain stability in the market."
Prices, meantime, remained steady. The average price for single family homes in Greater Victoria last month was $492,483; the average for the last six months was $486,699. The median price for single family homes at $428,450 was substantially lower than the average. The average price for all condominiums sold in February was $253,660; the average for the last six months was $263,550. The median was again lower at $232,000. The average price for townhomes in February was $344,325; the average for the last six months was $354,636 and the median last month was $331,000.
Kendrew notes that in February there were 12 single family homes that sold for over $1million and three condominiums that sold for over $700,000 but the market continues to offer a wide choice of price options to buyers. "Over 35% of single family homes sold for under $375,000 last month and nearly one third of all condominium sales were for less than $200,000."
MLS® sales last month included 359 single family homes, 166 condominiums, 62 townhomes and 14 manufactured homes.
Statistics courtesy of the Victoria Real Estate Board
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