Canada Biggest Jump in New Home Prices Since Jan08

New data released yesterday (Thursday) by the federal agency Statistics Canada (Statscan) showed new home prices rising in September faster than at any time since the beginning of 2008. The positive reading of 0.5 percent surprised market observers and is yet another in a string of recent indicators reflecting on the country's strong housing market.

As a result the year-on-year decline in prices eased from 3.1 percent in August to 2.7 percent in September.

Vancouver and Ottawa-Gatineau lead the way with 1.4 percent and 1 percent rises respectively while Windsor, Ontario recorded the biggest decline. Statscan said the jump in the new housing price index was largely due to improving market conditions and consumer confidence.

n the same month permits for housing construction jumped 9.4 percent and the federal housing agency CMHC is looking for a 26 percent rise next year in Toronto.Stewart Hall, markets strategist at HSBC Canada said sales were above pre-crisis peak levels, citing pent-up demand and rock-bottom interest rates as market drivers. Writing to clients he reported "Real estate has been the economic surprise of 2009....Today's new home price data seems to be pointing to an inflection point."

Thomson Reuters noted that the 0.5 percent rise beat the forecast of every single one of 15 analysts polled.

However housing market buoyancy is not yet reflected in other sectors of the economy, with some recent data questioning a wider economic recovery, and throwing into doubt the Bank of Canada's prediction of 2 percent annual growth in the third quarter.

Exports are expected to be weak, and a second Thomson Reuters poll is predicting a merchandise trade deficit of C$1.75 billion in September. We will soon see if the trade figures, due out later today, will follow housing and surprise to the upside. Even weakness in this sector could add to house-buying momentum if it persuades the Canadian Central Bank to delay interest rate rises.

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South Koreans Snap Up Canada Property

The number of South Koreans buying homes in Canada doubled between June and July this year, and when figures are released for the final quarter similar increases are expected.
Liam Bailey, chief market analyst for the overseas property portal Property Abroad gave his views on the findings:

"Well, Canada has largely become the same as the U.S.; a buyer's market. The lack of developers with the facilities to give credit and loads of apartments unsold is bringing an abundance of bargain properties to the market. That combined with the weakening dollar against the strengthening Euro, and there are very few reasons for Sterling backed investors to pick up one of these bargains, of course with the view of buying-to-hold. Of course, cash-rich Korean's are only too willing and able to snap up Canadian property bargains during the credit-crunch, in the knowledge that they will make a big-profit, even if it takes several years to do so."

Property Abroad have some excellent Canadian properties, including many bargains throughout all the most popular regions of Canada.

In Quebec there is a one acre land-plot for an astonishing £22,500, and on the resort voted best in Quebec 8 years running. The developer is offering a wide-range of pre-designed chalets to build on the plots, building cost is around $100 per sq ft. Construction has already begun on some of the plots, and there is a show-chalet available.

The Rouge River development -- on the resort by the same name -- is located on the breathtaking Laurentian Mountain range in Quebec. Buyers are automatically granted fishing rights to the 100-milles of trout-filled river weaving its way through the resort, as well as use of the 100-mile bicycle track running along its banks. The Rouge River resort is a great attraction, and when building is complete immediate growth should be at least 30% on plots and chalets.

Ice-fishing is possible in winter when the bicycle-track becomes a cross-country ski trail, which also weaves its way through the woods up the mountainside away from the river, which compliment perfectly the world-class Alpine ski slopes in Mt-Tremblant , just a 30-minutes drive away, and Montreal just 90 minutes. All this combines to give Rouge River properties incredible all-year-round rental potential, which when added to the low prices of the property compared to those surrounding it, translates to a rental yield of between 8 and 12% according to Liam Bailey.

Though the 2 bed chalet on Rouge River is currently the lowest priced Canada property on Property Abroad, they have many other properties that are currently priced far lower than they were last year, find out more by visiting the site.

About Property AbroadProperty Abroad is rapidly growing into one of the best known, trusted and most successful overseas property portals in the U.K. With a slick dynamic site and very reasonable rates Property Abroad currently has among the most extensive worldwide property listings on the net. To find out more contact Liam Bailey on liam@property-abroad.com or the team at: info@property-abroad.com

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Canada One of Finest Property Investment Destinations

Since Canada was named as the host country for the 2010 Winter Olympics and Paralympics there has been a massive upsurge of tourists going on ski vacations to Canada. One particularly popular destination is Quebec, with many various fantastic slopes to choose from. Liam Bailey; chief market analyst for overseas property portal Property Abroad gave his comments on “one of his favourite” investment markets in the world.

“As people who have read my comments on Quebec in The Times and other publications before will know it is one of my favourite locations in the world in terms of investing in property. It is, quite simply, and as far as I’m concerned undoubtedly one of the few markets in the world where you can bank on an all year round rental income; my opinion on the reason for this is that it just has so much going for it, many things are of course shared by other locations in Canada. “

“The sheer variety of wildlife alone attracts people in their droves, which of course changes drastically throughout all the seasons, therefore giving Quebec all year round wildlife visitors. Then you have the fresh spring, and lovely warm but still fresh summers to enjoy the fishing, wildlife and/or just exploring the beautiful countryside. Autumn is amazing anywhere, but the crispness of being so far into the northern hemisphere makes the Canadian autumn just that little bit more special. Montreal – the Monte-Carlo of Northern America -- is a massive plus for Quebec. Then to move onto the skiing you have the absolutely breathtaking Mt Tremblant, which is unarguably one of the finest skiing locations in the world. “

Property Abroad has some excellent property in Canada , including a 2 bed Canadian style chalet , on the Rouge River resort in the Laurentian Mountains. 100-miles of the fantastic trout-filled Rouge River runs through the resort, with a 100-mile bicycle track running along the banks. All owners are given full-rights to fish on the river. The woods weaving up the Laurentian Mountain range away from the river are excellent for exploring in the summer, and have cross-country ski-trails in winter. This perfectly complements the world-class alpine skiing of Mt Tremblant, which is just 45mins to an hour away from the resort -- Montreal can be reached in 90mins.

Rouge River resort’s proximity to both these tourist attracting locations gives this unit another added benefit: the fact that it is being sold privately for a quick-sale at just £22,500, means that you can charge far less than Mt Tremblant or Montreal’s rental rates, and still easily make 10-12% rental yields. Capital appreciation will be at least 30% immediately when the resort is complete (when all chalets are built), and average 10% per year in the foreseeable future.

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