US Commercial Market – Appreciation from Cap Rate Compression

June 28, 2013

CoStar’s Property and Portfolio Research (PPR) division is forecasting that the wave of cap rate compression that has in some cases accounted for an astronomical 90% of the gain in core real estate value since the last recession is likely to slow.  Specifically, PPR’s analysis of the top 54 U.S. markets finds that cap rates should remain within 20 basis points of today’s average through 2017, which will reduce the rate of real estate price growth relative to the recent past.

This is significant because transaction pricing tends to be an early indicator of appraisal pricing, and the last time transaction-pricing growth fell below appraisal trends was at the start of the recent recession, in the second half of 2007.

earlyin

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Canadian Home Price Home Bounces Back, But Interes Rate Test Lies Ahead

June 28, 2013

Recovering home sales and stable prices are causing some analysts to declare that the housing market will avoid a hard landing. But the market has yet to face its biggest tests – higher mortgage rates and the completion of many planned condo units, largely in Toronto, that are currently just space in the sky.

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Calgary May House Price Growth 2.6% – Best in Canada

June 28, 2013

CALGARY — Calgary’s housing market continued in May to shine compared with the rest of the country as the city’s year-over-year price growth was the best in Canada and the increase in MLS sales activity topped all other major markets.

According to the Canadian Real Estate Association’s MLS Home Price Index, which was released Monday, prices in Calgary were up 6.87 per cent from a year ago. Nationally, the index rose by 2.3 per cent.

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US – NAHB Offers Reasons for Optimism About Housing’s Full Recovery

June 27, 2013

The nation’s growth “is finally being driven by housing again,” proclaimed David Crowe, NAHB’s chief economist, during the association’s Construction Forecast Webinar. Home prices have been rising, partly the result of tightening inventory of completed new homes, which in turn is stimulating demand. Employment—a major factor in home-buying decisions—continues to strengthen, albeit incrementally. And housing’s recovery is now national in scope.

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Canadian housing sector faces downside risk: Scotiabank real-estate report

June 27, 2013

Housing prices in Canada have been relatively flat so far this year but there’s a “downside risk” going forward, particularly in the country’s largest city, according to a Scotiabank report issued Friday.  Toronto’s housing market is correcting in the wake of affordability pressures, inventory build, changes to mortgage insurance rules and more cautious lending policies,” writes Scotiabank economist Adrienne Warren.

“Sales and construction have already shifted notably lower, and prices are beginning to level out. We expect this adjustment process to continue into mid-decade, with downside risk to prices, particularly in the condominium market where supply additions are expected to outpace underlying demand.”

It said a tight supply of single-family homes in the area has supported overall home price averages. It also notes that, while there’s a lag, prices tend to fall after sales drop off and the supply of unsold properties rises.

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Best US Markets to Flip Residential Homes

June 27, 2013

Flipping  homes — buying, rehabbing and reselling for a profit usually within about 90  days — will likely become more favorable for investors in 2013 as home prices  are expected to continue climbing. And while buying  homes as rentals still offers a solid rate of return in many markets, even  buy-and-hold investors typically flip properties periodically to fund their ongoing  rental purchases.

top 25 markets for flipping homes

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Toronto Condo Market – Watch Over Supply

June 27, 2013

TORONTO — Housing prices in Canada have been relatively flat so far this year but there’s a “downside risk” going forward, according to a Scotiabank report.

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