http://www.theglobeandmail.com/servlet/story/RTGAM.20080423.wrreal23/BNStory/GlobeSportsHockey/

Legions of first-timers are adding years of extra mortgage payments so they can buy a house, or putting little or no money into a down payment, a Re/Max survey revealed yesterday. Nearly two-thirds of buyers in major centres now favour extended amortization periods of up to 40 years, while putting little or no money down was prevalent in 38 per cent of regional markets surveyed across Canada.

The country's real estate industry has played down any similarities to the U.S. when it comes to subprime borrowers. But as new segments of the Canadian population enter the market, the findings raise questions about what's been driving soaring house prices in recent years.

"The reason we think the market has been staying hotter much longer than anyone anticipated was because of these newer amortization mortgages," said Craig Alexander at Toronto-Dominion Bank.............................................................

http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=5ab78d20-85dc-44f3-b3e1-902c9b014d25

Alberta led the country with the biggest drop in resale housing activity in the first quarter of this year while at the same time outpacing the other provinces in new MLS listings.

A report released Tuesday by the Canadian Real Estate Association says MLS sales in the province were down 30.5 per cent compared with the first quarter of 2007, new listings increased by 36.2 per cent, total dollar volume of all transactions dropped by 26.7 per cent but the average sale price increased by 5.4 per cent to $361,544.

And the report also showed a similar real estate scenario for March, with the province experiencing the biggest yearly drop in sales across the country, at 34.3 per cent compared with March 2007, and a 25.1 per cent hike in new listings for the month -- again the provincial leader.

The average MLS sale price in Alberta increased by 3.7 per cent in March from a year ago to $365,888 but total dollar volume of all transactions was down by 31.9 per cent.

http://www.cmhc-schl.gc.ca/odpub/press/2008/2008_05_08_0900_EPE.pdf

Housing Starts Continue Downward Trend in April
CMCH released their monthly report today, showing that housing starts were down again in April. For the year so far, starts are down 41% from '07 in the greater Edmonton area. If you compare April '08 to April '07 starts fell 60% in the greater Edmonton area, and 44% across Alberta (the only major city that saw an increase was Lethbridge).

"For the tenth month in succession, single-detached housing starts registered another year-over-year decline in starts in April. Home builders poured foundations for only 178 units last month, representing an 80 per cent slide from April of last year. For the year-to-date, single starts have fallen by over two thirds from the first four months of 2007 to 835 units, the lowest level of activity since January through April of 1996. “High levels of unsold spec home inventories coupled with an ample supply of resale listings continue to undermine new singledetached construction this year,” observed Richard Goatcher, CMHC’s Senior Market Analyst for Edmonton. CMHC expects single-detached starts to begin improving in the second half of the year once new house inventories turn the corner in the months ahead."

Multiple starts were also down - 38.5% - "Multiple unit starts are expected to cool for the duration of 2008 due to an expected run-up in new condominium apartment inventories and a relatively well supplied existing condo market,” added Goatcher.

When whole town/country know the news then newspaper print that news means 100% confirmed news.. That is called last try to make people wake up.

Just wondering how experts are looking these new realities when oil is highest peak, unemployment are still lowest, migration is +ve.

Questions?:

1. Are we going to follow same curve like US down the line?
2. If all fundamental are good then why are we seeing decline face with speed faster than US decline in such a short time?
3. Speculation, experts and marketing media are responsible for brining these conditions?
4. Are we San Diego, Las Vega or Miami of Canada who see this Tsunami first?



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May 12, 2008 - Calgary Herald
Growth in new housing prices slows
May 10, 2008 - Calgary Herald
Resale prices stable as market balloons
Alberta has largest sales decline
Condo buyers must find out what they’re paying for
MLS home for sale inventory hits record high
New construction in Calgary still on a tear
May 9, 2008 - Calgary Herald
Calgary housing starts plunge 56%
May 7, 2008 - Calgary Herald
House prices will rise, but sales expected to slide
Calgarians lead nation in condo investment
May 7, 2008 - Calgary Sun
Calgary building boom hits brakes
May 6, 2008 - Globe & Mail (Report on Business)
Canadian sales of existing homes forecast to drop this year
May 6, 2008 - Calgary Herald
Sales soar in strong quarter for Calgary commercial real estate

Hey Rahul,

You only quoted Calgary. I (and many others) would be happy to see the statistics on Metro Vancouver where the real estate is still going up 'n' up.

Average house prices in Metro Vancouver is still the highest (and insanely insane) in Canada. What's your opinion?

since JULY of last year. See this post.

http://canadiandesi.com/read.php?TID=18022&page=1

And if you are one of the very few who has waited to save around $ 20,000 then CONGRATULATIONS are in order. There are some finer points that need to be brought up though. One is that you've paid over $ 15,000 in rent (avg $1500 pm). Second is that you've missed the chance to paydown your mortgage and build equity by another year. And lastly, one more year lost in the process of calling Canada home.

BV

Vancouver market has been falling for the last two years .... check http://www.canadiandesi.ca/read.php?TID=13541