Uncertainty keeps the market soft CONSUMER UNCER- TAINTY has kept most housing markets in Canada from starting their antici- pated recovery, says Royal LePage. “Strikes by the Public Service Alliance and Canada Post, plus the slow econom- ic recovery throughout the country, have made poten- tial home buyers wary,’’ . says Gino Romanese, execu- tive vice president of Royal LePage Residential Keal Estate Services. ‘‘In addi- tion, interest rates are com- ing down and when that happens, potential buyers tend to sit on the sidelines until the rates hit bottom. Provincial elections in Brit- ish Columbia and Saskat- chewan have caused a wait-and-see attitude among home buyers in those pro- vincses. In Ontario, the NDP budget has made some potential! move-up buyers skittish about assuming debt. “Overall, in the past nine months, sales are up across the country,”’ he adds. ‘But most of this activity was in the spring. Sales were down during the summer and the expected resurgence in the fall has not happened yet in most parts of Canada.”’ Romanese made his comments with the release of the October issue of the Royal LePage Survey of Canadian House Prices. The quarterly study tracks the prices of seven categories of homes in over 200 com- munities across the country. Figures in the survey show precisely what has happened and support Romanese’s comments. In Toronto, Canada’s largest Teal estate market, a soft- ening of demand has created soft prices. The median price of a typical three- bedroom bungalow is now $205,000, down 7% in the past 12 months. Similarly, a four-bedroom executive home has dropped $5,000 to a median price of $286,000. Vancouver is Canada’s hottest housing market. Sales are running well ahead of last year and prices con- tinue to be firm or are in- creasing moderately. The median price of a three- bedroom bungalow is now $210,000, wp 15% from a year ago. However, the survey shows that although sales are maintaining a good pace, much of the appreciation in housing values in Vancouver took place during the spring 1991 mini-boom. In the past three months, prices have Stabilized: the value of a senior executive home on Vancotiver’s west side has not changed since July, when it was $390,000. A similar home in West Van- couver has dropped marginally in value from 921-6102 Gil. Mitten, President of Mitten Realty Ltd., is pleased to welcome Sarina McKenzie, Pat Raymond, John Rosenkrands and David Thon to the North Shore sales staff of Mitten Really Ltd. $4s. McKenzie was raised on the North Shore, attended West Vancouver Secondary School and graduated from the University of Victoria wich a Bachelor of Aris degree. Sarinw has 5 years of sales an¢ marketing experience in the textile industry. She currently resides in Lions Bay. Savina would be very pleased to assist you in buying and selling real estate and to answer uestions on related matters. ; ; i "bat Raymond was first licensed in 1981 and developed a good clientete until her departure in 1988. We are very pleased to welcome Pat and she is looking forward to assisting her 1 clients and many friends in matters of real estate. a , , , ; patohn Rosenkrands brings te Mitten Realty a varied background in real estate and commercial banking. John invites his past clients, friends and business associates to call him for all their real estate needs. $698,000 to $695,000 in the same period. Montreal is one of the areas that has suffered most from consumer uncertainty. Over 30,000 homes are listed for sale in the Mon- teal area, the most of any city in Canada. As a result, the median price of a three-bedroum bungalow in Montreal has slipped $3,000 since July 1991 and now stands at $110,000. ‘*But,’’ says Romanese, “there are some bright spots and good indications real estate markets will pick up in the coming months.” He points to Ottawa, where a combination of peni-up demand and flower interest rates have prompted sales of homes in the fower price ranges. In most areas in Ot- tawa, prices were stable over the past three montiis, or showed modest increase:.. In Western Canada, hous- ing markets in Edmonton, Calgary and Winnipeg are being supported by buyers active in the lower end of the market, too. In most in- stances, the prices of more affordable properties like bungalows and townhouses have increased. In com- parison, the values of higher-priced homes have dipped. The Royal LePage Survey of Canadian House Prices is the largest, most com- prehensive study of its kind in Canada, with information on seven types of housing in over 200 neighbor™oods from coast to coast. The survey includes historical data back to the late 1970s. Housing vaiues in ihe survey are Royal LePage epinions of fair market value in each location, bas- ed on local data and market knowledge provided by Royal LePage residential real estate specialists. Home buying trend is shifting from first-timers to move-up, repeat buyers A SIGNIFICANT change is taking place in housing markets across Canada, ac- cording to a new study released by Royal LePage. First-time buyers, whose numbers increased in 1990 and early 1991, are giving way io move-up and repeat buyers. The trend is most evident in Montreal, Calgary and Ontario centres like Toron- to, Hamilton and Ottawa. Nationaily, repeat buyers {people who have bought more than one home during their lifetime) accounted for 65% of all resale homes purchased in Canada in PAT RAYMOND 984-3541 1990. Their numbers drop- ped to 64% in the first quarter of 1991, but rose during the second quarter to 69%, the highest level since 1988. Preliminary figures for the third quarter show the trend is continuing. **The proportion of first- time buyers started to in- crease in 1989,’? comments Gino Romanese, executive vice president for Royal LePage residential real estate services. ‘‘During the real estate market slowdown jast year, they became the most active segment of the market and really powered the spring market this year. ¥ ROSEN! 980-1282 “The return of repeat and move-up buyers is a sign the market has broadened. This will eventually strengthen the chain of activity needed for a stronger overall resale housing market,’’ says Romanese. Not all repeat buyers are moving up to larger or more expensive properties, he adds. There are some cases of downsizing, particularly in more expensive markets like Toronto and Van- couver, In Montreal, where pro- vincial government grants were available, first-time buyers reached a national high of 60% during the first three months of 1991. Their numbers came down to 45% during the second quarter as the number of repzat buyers increased. Outside Montreal, the largest increases in repeat buyers this year have taken place in Hamilton (+ 15%}, Calgary (+12%), and Toronto (+8%). The most stable markets, in terms of first-time vs. frepeat buyer ratio, have been Vancouver, Edmonton, Winnipeg, Regina, and Saskatoon, where the change this year has been under 5%, 985-967 avid Thon is another North Shore product, having grown up ia the Canyon Heights area, aitendad Handsworth Secondary and graduated from Arayte Secondary. ; David has sales and marketing experience in the auto industry and has the distinction of receiving the highest mark in the province of B.C. Reai Estate prelicensing course with 92%. avid looks forward to assisting his many triends arid business associates in their real estate needs. , ° Mitten Realty Ltd. is a full service real estate company serving the North Shore for the past 25 years. We aie proud of our reputation ot “Service with Integrity” and look forward to serving our many clients, friends and growing clientele for a ET TPS EN TUN MIS vee PCL nother quarter century. Talk tc a Mitten Realtor where Real Estate is Serlous Business but a PLEASURE. PERS TEN 1716 RUFUS DR. LOW $300’s GREAT BACHELOR GREAT BUILDING GREAT PRICE FOR FIRST TIME OWNER 6 R’* INVESTORS GREAT PRICE? YES! ONLY $89,900 CALL STAN OR BRUCE 988-1175 This home on a quiet street, offers spacious living with vaulted ceilings and a huge sundeck, great for barbecuing. There are 3 bedrooms up, 2 bedrooms down with a large rec room and a full bath. Beautifully maintained level fot, with manicured shrubs and planis. PETER LEE 929-8661, 988.1175