Canada’s housing market begins to apply the brakes

October 26, 2013

The housing market is already decelerating, making a discussion about overheated home prices premature at this point, says the association which represents realtors.

“While the momentum for sales activity began improving a few months ago, it may be losing steam after having just climbed back in line with an average of the past 10 years, said Gregory Klump, chief economist with the Ottawa-based Canadian Real Estate Association, which represents about 100 boards across the country.

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CREA-Vancouver Real Estate Boosts National Housing Number

October 26, 2013

OTTAWA – Homes were selling at a brisk pace in Vancouver and Toronto last month, while the national average price continued to rise, suggesting Canada’s real estate industry has returned to “average levels” after a decline that began last summer.

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US – Top 10 Wage Soaring Cities

October 26, 2013

The average wage of a U.S. worker was $1,000 per week in the fourth quarter of 2012, or 4.7% higher from the same time in 2011, according to the Bureau of Labor Statistics (BLS). In some areas, pay rose than 10%.

In other cities, however, there appears to be a single industry that is behind the significant change in the average wages. For example, in Midland and Odessa, Tex., and Cheyenne, Wyo., wages likely increased because of strong growth in the oil industry. In the two Texas cities, the mining, logging and construction industry, which includes oil-related employment, jobs grew by roughly 15% in each.

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US – Single-Family Rental Market Trying to Prove It’s Sustainable

October 25, 2013

The recent initial public offering by real estate investment trust American Homes 4 Rent, which captured $706 million, raises more questions than answers about the long-term viability of the single-family rental home market.

Even the Federal Housing Finance Agency—whose Real Estate Owned Pilot Initiative, launched two years ago, has transferred 1,763 REO properties to new owners—seems ambivalent about future demand. 

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US – The Best and Worst Rent Growth Markets 2013

October 25, 2013

Two of the nation’s largest states have seen the largest rent growth over the last year.

Three major metros in California, and three in Texas, dominate the rankings of the Top 10 rent growth markets so far this year, according to Carrollton, Texas-based MPF Research.

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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.

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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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