NEW FIRST-TIME HOME BUYERS’ TAX CREDIT
The budget proposes to introduce a new non-refundable tax credit for first-time home buyers who acquire a qualifying home after January 27, 2009 (a qualifying home is one that is currently eligible for the Home Buyers’ Plan).
First-time home buyers will be able to claim a 15% non-refundable tax credit on an amount of $5,000, for a maximum credit of $750 in the year the home is purchased. If a home is purchased jointly, the total credit that may be claimed by all purchasers combined is $750. The credit will also be available for certain acquisitions of a home by or for the benefit of an individual who is eligible for the disability tax credit (DTC).
INCREASED HOME BUYERS’ PLAN WITHDRAWAL LIMIT
To encourage home ownership and home construction, the budget proposes to increase the Home Buyers’ Plan (HBP) withdrawal limit to $25,000. Read More
“The going rate for housing in other central Canadian markets such as Ottawa and Montreal is anticipated to stay relatively flat.”
Forecast average housing prices for 2009 (% change from 2008)
Halifax $234,300 (+1%)
Montreal $254,400 (-1%)
Ottawa $291,000 (0%)
Toronto $364,800 (-4%)
Winnipeg $204,900 (+4%)
Regina $243,300 (+6%)
Calgary $402,000 (-1%)
Edmonton $333,000 (0%)
Vancouver $540,100 (-9%)
Canada-overall $295,000 (-3%)
Source: Royal LePage
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Last month’s MLS® residential sales in the Montreal Metropolitan Area decreased by 31 per cent compared to November 2007, a 6 per cent decrease in year-to-date sales compared to the same period last year, according to the Greater Montreal Real Estate Board (GMREB). While sales have decreased, single-family home median prices are up by 6 per cent year-to-date.
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MLS® Residential Statistics
Montreal Metropolitan Area
January to November 2008 versus January to
November 2007
Variation
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Active listings (cumulative average) 24,047 +6%
New listings 72,917 +5%
Total Sales 39,233 -6%
Single-family 23,333 -9%
Condominiums 11,117 +2%
Plexes (2 to 5 dwellings) 4,323 -8%
Volume of sales $10,109,879,648 -2%
Median price
Single-family $227,000 +6%
Condominiums $185,000 +3%
Plexes (2 to 5 dwellings) $335,000 +6%
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Source: Greater Montreal Real Estate Board by CentrisTM
“Montreal’s real estate market has done quite well this year especially when you consider that prices are up and we’re comparing today’s sales with 2007, the year that broke all sales records,” said Michel Beausejour, FCA, GMREB’s Chief Executive Officer. “All being said and done, Montreal’s market continues to be a good investment, particularly when comparisons are made with other major Canadian cities such as Toronto, Calgary and Vancouver where sales of single-family homes have dropped by as much as 37 per cent year-to-date, whereas we’re only at a decrease of 9 per cent,” he said.
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Royal Lepage real-estate agent Patricia Karchemny says studies that say our market is overvalued are based on the fact that Montreal rental rates are very low compared to our property values because the Quebec Rental Board keeps rental prices in check.
“If you’re only looking at that then obviously we would be out of whack compared to Toronto or Vancouver, but I don’t believe we’re overvalued here,” she said.
On her website, Montreal Real Estate Pro, Karchemny recently published her take on the Montreal real-estate market, stating: “Prices are still growing above the inflation rate of 3.5 per cent with a five-per-cent rise for single-family homes over September 2007, but there are 10 per cent more active listings on the market compared to the same period last year.”
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As part of its efforts to address the current financial crisis, the federal government announced that it will inject $75 billion of new money into the financial system, by buying insured mortgage pools from Canadian financial institutions. Read More
Year-to-date sales in the Montréal Metropolitan Area total 36,955 transactions, and are down slightly by 4 per cent compared to the same period last year, according to the Greater Montréal Real Estate Board’s MLS® system.
“With real estate sales still going strong in Montréal, it proves that it’s still a good investment. This argument is even more compelling when you look at the other major cities like Calgary, Vancouver and Toronto, which have seen dramatic decreases in sales since the start of this year,” said Michel Beauséjour, FCA, Greater Montréal Real Estate Board Chief Executive Officer. “Also, bear in mind that we’re comparing sales so far this year with 2007, which broke all records,” he said. Read More
The market does not operate in a vacuum and real exterior forces are exerting pressure on the residential market; I believe we are heading into a period of contraction. We’re 2% down in terms of the number of transactions in Montreal year to date compared to 2007. Prices are still growing above the inflation rate of 3.5% with a 5% rise for single family homes over September 2007, but there are 10% more active listings on the market compared to the same period last year….
According to the CMHC’s second quarter report, the Listing-to-Sales ratio in Metropolitan Montreal remains in favor of the Seller except for units from $300,001 to $500,000 where it is considered to be a Balanced Market and units over $500,000 where it is a Buyer’s Market.
Of all the economic indicators, I’d keep my eyes on the unemployment rate as no matter how accessible interest rates are, if people are not working or fear loosing their jobs, they are not getting mortgages and buying property.
The increase in sales in the Montréal Metropolitan Area is the highest it’s been in the past 11 months, growing by 13 per cent in September 2008 compared to September 2007, according to the Greater Montréal Real Estate Board’s MLS® statistics. With 3,060 sales this past month, year-to-date overall sales are down by only 2 per cent.
Sales of condominiums in the Montréal Metropolitan Area, which were already performing well, increased by 25 per cent in September 2008 compared to September 2007, reflecting sustained activity in suburban areas (+41 per cent on the North Shore and +27 per cent on the South Shore). Sales of plexes also increased substantially, growing by 16 per cent. And, finally, sales of single-family homes rose by 7 per cent in September, the first increase since the start of the year. Read More
Median prices of single-family homes in the Greater Montréal Metropolitan Area rose by 4% in August compared to the same month last year while total sales decreased by 6%, according to MLS® statistics of the Greater Montréal Real Estate Board (GMREB). Year-to-date, overall sales decreased by 4% in 2008. “Greater Montréal’s slow and steady increase in prices reassures buyers and sellers that the residential real estate market continues to be a good investment,” said Michel Beauséjour, FCA, GMREB’s Chief Executive Officer.
“Montréal’s stable market continues to defy the trend elsewhere in Canada’s major cities like Calgary, Vancouver and Toronto where sales have dropped significantly, even as high as 53% in the case of Vancouver. Even in Calgary, prices have started to decrease,” he said. Read More
After a worldwide vote, Montréal will represent the most he most prestigious property property on the new MONOPOLY Here & Now: The World Edition game board. More than 5.6 million votes were cast for 70 world-class cities, which determined 20 of the 22 cities featured in the game.
The new MONOPOLY Here & Now: The World Edition will be available in stores around the world starting on August 26, 2008 in more than 50 countries and in 37 different languages.
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