TSX logs third consecutive session of triple digit gains
· TSX +354.65pts (Reuters) jumped more than 3%,as investors gave an extra surge in the final minutes of trading, its 3rd straight day of healthy gains, led by commodity issues as market sentiment remained buoyant after Wednesday's rate cut by the U.S. Fed.
· Dow +189.73pts Also providing some support was preliminary data that showed U.S. 3rd-quarter GDP shrank less than forecast by economists.
· Dollar +.54c to $82.17US. The Canadian dollar continued its revival opening with a gain of more than 2c on top of Wednesday's startling 3.67-cent surge, though its upward momentum slackened as the day went on
· Oil -$1.54to $65.96US per barrel. demand fears pushed the price of gold and oil down.
· Gold -$15.50 to $738.50US per ounce
Although first article says house prices are falling, 2nd article explains it as only drop in some high priced markets pulling down National average
Canada's housing market is cooling: CMHC
Prices will edge up but building to decline Garry Marr, Financial Post
House prices are going to go up next year, albeit by a mere $200, according to Canada Mortgage and Housing Corp.
The Crown corporation warned that some moderation can be expected in the once red-hot housing sector for the rest of this year and into 2009.
The forecast comes as house prices have been falling nationally, according to the Canadian Real Estate Association. Canada's largest housing markets have experienced prices declines from a year ago for four straight months, with each percentage drop bigger than the next.
Now CMHC has waded into the debate with its own forecast that despite the recent trend, home sale prices should edge up this year.
It expects the average price of a home sold to rise to $306,500 from $305,707. By next year the average sale price is forecast to rise to $306,700.
"High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year," said Bob Dugan.
However, CMHC is clearly predicting a pullback and titled its latest report, "Housing market starting to ease."
It says for the first time in seven years the number of new homes built across the country will dip below 200,000.
The agency is forecasting 212,188 starts for this year which will be a drop from the 228,343 homes built in 2007. By 2009, the forecast is for 177,975 new homes to be built.
The prognosis is not much better for the sales of existing homes. After setting an all-time sales record of 523,701 transactions in 2007, sales are expected to drop to 452,225 in 2008 and 433,375 in 2009.
CMHC says those sales are "still strong" by historical standards.
House prices still rising in most markets: CREA
Dramatic drops in some cities weigh on national average Garry Marr, Financial Post
The Canadian Real Estate Association says the falling average sale price nationally is a reflection of a decline in sales in high-priced markets and notes prices are still rising in a majority of markets.
The Ottawa-based group, which represents more than 100 boards across the country, said the average sale price of an existing home fell 5.4% in September to $289,916 from $306,347 a year ago. But it noted prices are actually up in 65% of the boards it represents.
"The recent price declines in the Canadian housing market reflect lower activity in some of Canada's priciest housing markets that had posted large price increases. Price declines in the U.S. reflect a massive oversupply of housing due to soaring foreclosures and overbuilding," said Calvin Lindberg, the president of CREA.
Vancouver, the most expensive market in the country, has had year-over-year sales declines in the 40% range and many real estate analysts suggest the results are skewing the national number.
CREA said the supply of new homes reaching the market is also shrinking. It said there were 230,107 new listings in the third quarter on a seasonally adjusted basis, down 3.1% from the previous quarter which was the highest on record.
Despite the drop in supply, CREA is forecasting the national number for home prices will continue to decline.
"Price declines in some of Canada's more expensive housing markets will outweigh further price gains in other markets and continue pulling the national average price lower the rest of year and into 2009," said Gregory Klump, chief economist with CREA
Have a fun, safe and happy Halloween!
Friday, October 31, 2008
Financial Update
TSX logs third consecutive session of triple digit gains
· TSX +354.65pts (Reuters) jumped more than 3%,as investors gave an extra surge in the final minutes of trading, its 3rd straight day of healthy gains, led by commodity issues as market sentiment remained buoyant after Wednesday's rate cut by the U.S. Fed.
· Dow +189.73pts Also providing some support was preliminary data that showed U.S. 3rd-quarter GDP shrank less than forecast by economists.
· Dollar +.54c to $82.17US. The Canadian dollar continued its revival opening with a gain of more than 2c on top of Wednesday's startling 3.67-cent surge, though its upward momentum slackened as the day went on
· Oil -$1.54to $65.96US per barrel. demand fears pushed the price of gold and oil down.
· Gold -$15.50 to $738.50US per ounce
Although first article says house prices are falling, 2nd article explains it as only drop in some high priced markets pulling down National average
Canada's housing market is cooling: CMHC
Prices will edge up but building to decline Garry Marr, Financial Post
House prices are going to go up next year, albeit by a mere $200, according to Canada Mortgage and Housing Corp.
The Crown corporation warned that some moderation can be expected in the once red-hot housing sector for the rest of this year and into 2009.
The forecast comes as house prices have been falling nationally, according to the Canadian Real Estate Association. Canada's largest housing markets have experienced prices declines from a year ago for four straight months, with each percentage drop bigger than the next.
Now CMHC has waded into the debate with its own forecast that despite the recent trend, home sale prices should edge up this year.
It expects the average price of a home sold to rise to $306,500 from $305,707. By next year the average sale price is forecast to rise to $306,700.
"High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year," said Bob Dugan.
However, CMHC is clearly predicting a pullback and titled its latest report, "Housing market starting to ease."
It says for the first time in seven years the number of new homes built across the country will dip below 200,000.
The agency is forecasting 212,188 starts for this year which will be a drop from the 228,343 homes built in 2007. By 2009, the forecast is for 177,975 new homes to be built.
The prognosis is not much better for the sales of existing homes. After setting an all-time sales record of 523,701 transactions in 2007, sales are expected to drop to 452,225 in 2008 and 433,375 in 2009.
CMHC says those sales are "still strong" by historical standards.
House prices still rising in most markets: CREA
Dramatic drops in some cities weigh on national average Garry Marr, Financial Post
The Canadian Real Estate Association says the falling average sale price nationally is a reflection of a decline in sales in high-priced markets and notes prices are still rising in a majority of markets.
The Ottawa-based group, which represents more than 100 boards across the country, said the average sale price of an existing home fell 5.4% in September to $289,916 from $306,347 a year ago. But it noted prices are actually up in 65% of the boards it represents.
"The recent price declines in the Canadian housing market reflect lower activity in some of Canada's priciest housing markets that had posted large price increases. Price declines in the U.S. reflect a massive oversupply of housing due to soaring foreclosures and overbuilding," said Calvin Lindberg, the president of CREA.
Vancouver, the most expensive market in the country, has had year-over-year sales declines in the 40% range and many real estate analysts suggest the results are skewing the national number.
CREA said the supply of new homes reaching the market is also shrinking. It said there were 230,107 new listings in the third quarter on a seasonally adjusted basis, down 3.1% from the previous quarter which was the highest on record.
Despite the drop in supply, CREA is forecasting the national number for home prices will continue to decline.
"Price declines in some of Canada's more expensive housing markets will outweigh further price gains in other markets and continue pulling the national average price lower the rest of year and into 2009," said Gregory Klump, chief economist with CREAHave a fun, safe and happy Halloween!
· TSX +354.65pts (Reuters) jumped more than 3%,as investors gave an extra surge in the final minutes of trading, its 3rd straight day of healthy gains, led by commodity issues as market sentiment remained buoyant after Wednesday's rate cut by the U.S. Fed.
· Dow +189.73pts Also providing some support was preliminary data that showed U.S. 3rd-quarter GDP shrank less than forecast by economists.
· Dollar +.54c to $82.17US. The Canadian dollar continued its revival opening with a gain of more than 2c on top of Wednesday's startling 3.67-cent surge, though its upward momentum slackened as the day went on
· Oil -$1.54to $65.96US per barrel. demand fears pushed the price of gold and oil down.
· Gold -$15.50 to $738.50US per ounce
Although first article says house prices are falling, 2nd article explains it as only drop in some high priced markets pulling down National average
Canada's housing market is cooling: CMHC
Prices will edge up but building to decline Garry Marr, Financial Post
House prices are going to go up next year, albeit by a mere $200, according to Canada Mortgage and Housing Corp.
The Crown corporation warned that some moderation can be expected in the once red-hot housing sector for the rest of this year and into 2009.
The forecast comes as house prices have been falling nationally, according to the Canadian Real Estate Association. Canada's largest housing markets have experienced prices declines from a year ago for four straight months, with each percentage drop bigger than the next.
Now CMHC has waded into the debate with its own forecast that despite the recent trend, home sale prices should edge up this year.
It expects the average price of a home sold to rise to $306,500 from $305,707. By next year the average sale price is forecast to rise to $306,700.
"High employment levels, rising incomes and low mortgage rates have continued to provide a solid foundation for healthy housing markets this year," said Bob Dugan.
However, CMHC is clearly predicting a pullback and titled its latest report, "Housing market starting to ease."
It says for the first time in seven years the number of new homes built across the country will dip below 200,000.
The agency is forecasting 212,188 starts for this year which will be a drop from the 228,343 homes built in 2007. By 2009, the forecast is for 177,975 new homes to be built.
The prognosis is not much better for the sales of existing homes. After setting an all-time sales record of 523,701 transactions in 2007, sales are expected to drop to 452,225 in 2008 and 433,375 in 2009.
CMHC says those sales are "still strong" by historical standards.
House prices still rising in most markets: CREA
Dramatic drops in some cities weigh on national average Garry Marr, Financial Post
The Canadian Real Estate Association says the falling average sale price nationally is a reflection of a decline in sales in high-priced markets and notes prices are still rising in a majority of markets.
The Ottawa-based group, which represents more than 100 boards across the country, said the average sale price of an existing home fell 5.4% in September to $289,916 from $306,347 a year ago. But it noted prices are actually up in 65% of the boards it represents.
"The recent price declines in the Canadian housing market reflect lower activity in some of Canada's priciest housing markets that had posted large price increases. Price declines in the U.S. reflect a massive oversupply of housing due to soaring foreclosures and overbuilding," said Calvin Lindberg, the president of CREA.
Vancouver, the most expensive market in the country, has had year-over-year sales declines in the 40% range and many real estate analysts suggest the results are skewing the national number.
CREA said the supply of new homes reaching the market is also shrinking. It said there were 230,107 new listings in the third quarter on a seasonally adjusted basis, down 3.1% from the previous quarter which was the highest on record.
Despite the drop in supply, CREA is forecasting the national number for home prices will continue to decline.
"Price declines in some of Canada's more expensive housing markets will outweigh further price gains in other markets and continue pulling the national average price lower the rest of year and into 2009," said Gregory Klump, chief economist with CREAHave a fun, safe and happy Halloween!
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