Fall 2007 Special Edition Online eNewsletter

Home Sales Activity Forecast
Revised Upward

The strong residential real estate market for the first half of 2007 is expected to continue its strong performance for all of 2007 and throughout 2008. This will make for a record 2007 in both Multiple Listing Service® (MLS) sales activity and price, and this strength in the marketplace will continue through 2008, with forecasts by The Canadian Real Estate Association (CREA) indicating record prices for 2008 and similarly strong sales activity for 2008.

Nationally the sales volume for 2007 is expected to rise 8.1% to 523,100 units which will set new annual sales volume records in most provinces. The sales volume level for 2008 is forecasted to be just as strong, eclipsed only by the sales volume of 2007. Prices are forecast to set new records in every province and nationally for 2007 and then again for 2008. The increase in price is forecast to be greater for 2007 than for 2008.

Resale housing markets will continue to become more balanced in British Columbia and Alberta. Even so, markets will remain tightest in the Western provinces where annual price increases will be greatest. In other provinces, the resale housing market is forecast to be tighter in 2007 than it was last year, but it will become more balanced as housing prices increase and higher interest rates further impact affordability. The MLS® residential average price is forecast to set new records over the next two years in all provinces. Price increases are forecast to become smaller as the resale housing market becomes more balanced in 2008.

"Resale housing activity was a juggernaut in the second quarter of 2007," said CREA Chief Economist Gregory Klump. "Record breaking sales activity in the first and second quarters forced The Canadian Real Estate Association to revise its forecast upward."

"Home buying sentiment remains upbeat in all regions and mortgage financing is still within reach for many potential home buyers," Klump said. "The resale housing market will become more balanced as rising prices and higher mortgage interest rates gradually impact affordability. Strong employment numbers will keep sales activity strong, even as prices and interest rates continue to rise."

"Consumers continue to have strong confidence in Canada's resale housing market, and activity is on track to set a new annual record in 2007," said Ann Bosley, President of The Canadian Real Estate Association. Bosley notes the Canadian market has shrugged off the subprime problems that have been affecting the housing market in the United States, and a number of investment funds.

According to CREA's forecast, the resale housing market will become more balanced next year, but negotiations will continue favoring the seller in most provinces. To view CREA's residential market forecast and residential average price forecast go to juliemather.com/forecast and go to /newsletter for more info about August.

Thanksgiving Wellness Tips

“Delicious autumn! My very soul is wedded to it,
and if I were a bird I would fly about the earth
seeking the successive autumns.”
~Mary Anne Evans better known by her pen name George Eliot
Victorian Era English novelist, 1819 - 1880

“Every season hath its pleasure; Spring may boast
her flowery prime, Yet the vineyard's ruby
treasuries Brighten Autumn's sob'rer time.
~Thomas More
Tudor writer, statesman, philopsher &
advisor to King Henry VIII 1478 - 1535

“Youth is like spring, an over praised season more
remarkable for biting winds than genial breezes.
Autumn is the mellower season, and what we lose
in flowers we more than gain in fruits.”
~Samuel Butler
Poet 1612 - 1680

Thinking of Selling or Improving
the Appearance of Your Home?
Consider Landscaping.

Edge the flower beds where they meet the lawn to show the lawn is well kept. Add curves for greater appeal.

Feed the grass more than just water. Fertilize the lawn every 6 weeks or so. You’ll be impressed what a single application can do. Thinking about selling next year, there is still time to fertilize your lawn once or twice this year for a thick lush lawn next year.

Add colour with a few trays of flowers. At under $20 a tray you will get up to 40 flowers per tray. A tray of impatiens and petunias will add enormous colour and depth to your lawn. Thinking about selling your property next spring, plants bulbs, such as tulips, in the fall for a spring bouquet of colours.

Hostas are an extremely popular addition to your flower bed primarily for their beautiful foliage. As a perennial they are low maintenance. Their leaves come in a wide range of shapes, colours, sizes and textures.

Invest in a few perennials or shrubs that will stand about four feet high. These well placed plants will add much appeal to your property.

Consider something less common, such as a Japanese maple or a birch tree. It will add a dramatic touch to your property. The longer you are planning to stay put, the younger the planted tree can be.

While a front yard may be for show, the backyard often is a private space. If your backyard appears over exposed, a fence can be a quick solution. Or an Amur maple that will grow just tall enough to provide privacy.