Audrey Abuan & Mike Muranetz, CD

OTTAWA, August 31, 2010 — After rebounding in the second half of 2009 and early 2010, housing starts are expected to moderate in the second half of 2010. Starts are expected to stabilize at levels consistent with demographic fundamentals in 2011, according to Canada Mortgage and Housing Corporation’s (CMHC) third quarter Housing Market Outlook, Canada Edition.¹

Housing starts are expected to be in the range of 170,200 to 198,400 units in 2010, with a point forecast of 184,900 units. In 2011, housing starts will be in the range of 146,900 to 210,500 units, with a point forecast of 176,900 units.

"Housing starts will moderate in the coming months as activity becomes more in-line with long term demographic fundamentals,” said Bob Dugan, Chief Economist for CMHC.

Mr. Dugan also noted that the existing home market conditions will remain balanced over the next two years as MLS^®2 sales ease and inventory levels remain elevated. Existing home sales will be in the range of 450,000 to 485,700 units in 2010, with a point forecast of 463,800 units. In 2011, MLS^® sales will move lower and are expected to be in the range of 425,000 to 490,700 units, with a point forecast of 456,000 units.

With an improved balance between demand and supply, the average MLS^® price is expected to edge lower through the end of 2010 and then rise modestly in 2011.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

¹ The forecasts included in the Housing Market Outlook are based on information available as of July 30, 2010. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

² Multiple Listing Service^® (MLS^®) is a registered certification mark owned by the Canadian Real Estate Association.

Information on this release:

Download Edmonton's Market Outlook here

Homeowners are in the best shape when it comes to financial fitness in Canada, says a new survey. Sixty-five per cent of homeowners pay off their credit card balances each month (vs. 48 per cent of non-homeowners). A quarter of homeowners with mortgages have made a lump sum payment or accelerated their mortgage payments in the past year, according to the survey. It was sponsored by Genworth Financial Mortgage Insurance Company Canada.

Almost half of homeowners were able to pay all of their bills and save some money in the past year, suggesting a strong correlation between homeownership and financial fitness, the company says.

“Homeownership is an achievable goal for those who are prepared,” says Peter Vukanovich, president and COO Genworth Financial Canada. “Homeownership helps people focus on their financial situation and get their fiscal house in order.”

The Financial Fitness survey was conducted in conjunction with the Canadian Association of Credit Counselling Services (CACCS). Compared to the same survey undertaken in 2007 when the economy was booming, Canadians are even more likely now to say their financial fitness is good (55 per cent vs. 50 per cent).

Other findings of the survey:

• 49 per cent of homeowners made down payments of 20 per cent or more on their purchase;

• 13 per cent of homeowners say they are in great financial shape;

Posted: 16 Jul 2010 12:02 PM PDT

Listings need to Shine! Shine! Shine! Everything should sparkle and pass the "white glove" test. When I sold real estate years ago, there was nothing worse than walking into a property to show it and not wanting to remove my footwear due to the condition or cleanliness of the flooring. Buyers do not appreciate other people's filth.

When a seller expects to sell for top dollar they need to present a product that commands that price. Dirt and grime need to be removed off every nook and cranny. Sinks, light fixtures, mirrors and bathroom fixtures should all shine. Baseboards are often neglected and need to be washed thoroughly, as well as behind appliances and window wells. Every inch of dirt is like a dollar off your bottom line. Cleaning with a professional crew may be required and it cannot be ignored.

Some floor plans make me wonder what builders are thinking when they draw them up. Often there are walls that make no sense, fireplaces on strange angles, extra rooms that are really unnecessary and layouts that simply are not conducive to furniture layout. This makes home staging even more important to try to outline to the buyer how a room can be used. Creative techniques can be implemented to layout the items for the best presentation.

Staging shows a buyer what it can be like when they move in, especially if the layout is undesirable. Place furniture in every room suited for the best purpose possible to help a buyer know what to do with it when they move in. Often a property won’t sell when there is confusion about what the layout is all about. Staging takes away the confusion and offers sellers a solution to their layout problems.

The housing market was relaxed in May with slightly lower sales than last year and prices generally stable. Despite the sales drop, the current sales figures compare favourably with levels set in 2008.

“Financial incentives, changes to mortgage qualifying rules and the threat of increasing mortgage rates caused the local market to peak a little earlier this year,” said Larry Westergard, president of the REALTORS® Association. “Many buyers exercised their options in April leaving the customer base a little leaner in May.”

Single family residences in the Edmonton area rose in price by less than one percent and sold on average for $390,583 in May. Condominium prices dipped just two percent to an average of $248,526. Duplex and rowhouse prices of $320,204 were down 2.3% from last month. Overall, the average residential price was up a quarter of a percent to $340,192.

There were 3,670 residential listings in May with residential sales of 1,682 properties resulting in a sales-to-listing ratio of 46%. The average time to sell a home was 44 days (the same as April) and inventory at month end was 8,780 residential units (as compared to 8,056 in April). At current sales levels the inventory will last for over five months.

Sellers need to make closets look like a department store’s display of towels, beautiful and colour coordinated with neat folds. Make no mistake, the buyers are checking out all areas and considering them for their use. First impressions are key in every area of the home: furnace rooms, cupboards, laundry, closets, garages, decks and underneath them. Tell your sellers to leave no area un-staged and keep all their equity. Full de-cluttering services are available through Staging Services.