The resale housing market cracked $100 billion in sales activity for the first time in Canada's 25 largest markets, according to the Canadian Real Estate Association.

The Ottawa-based group said 362,934 units sold last year, a 7.9-per-cent increase from a year ago. Annual sales records were set in Regina, Saskatoon, Winnipeg, Toronto, London and St. Thomas, Hamilton-Burlington, Kitchener-Waterloo, Ottawa, Montreal, Quebec City, Saint John, Halifax and Newfoundland and Labrador

"The statistics show just how dynamic the Canadian housing market was in 2007 in virtually all parts of the country," said Ann Bosley, president of CREA. "The record sales activity shows it remains a very affordable real-estate market."

In terms of sales, the Canadian real-estate market appears to have peaked in the second quarter. However, the drop-off has been moderate with sales in the fourth quarter down only 1.6 per cent from the third quarter.

For the year, CREA said the dollar figure for sales in the country's 25 largest market was $118.3-billion, a 19.6-per-cent increase from a year earlier. The large dollar figure was one part record sales transactions and one part record sale prices.

For most of this year it has been a seller's market, says the real estate group. That has meant rising prices. The average price of a home sold in 2007 reached $326,055, a 10.8-per-cent increase from a year earlier. That was the largest annual percentage increase in 18 years.

"Resale housing demand remained high throughout 2007 due to job and income growth, the continuation of attractive financing and upbeat consumer confidence," said Gregory Klump, chief economist with CREA.

Klump expects 2008 will continue to be strong and is predicting sales will be the second highest on record, trailing only last year's pace.

The housing sector is forecast to get a boost from the Bank of Canada, which many anticipate will lower rates due to slower U.S. economic growth.

"Additional interest rate cuts this year will keep the resale housing market activity on a strong footing and prices will continue to rise, but at a slower pace," said Klump.

BRIAN FLINN

Halifax is a city of come-from-aways. It's widely known that Nova Scotia's capital lags behind larger Canadian cities in attracting immigrants from other countries. But few realize Halifax is near the top for drawing people from other provinces.According to the latest census, 7.5 per cent of citizens of Halifax Regional Municipality moved here from other parts of Canada between 2001 and 2006.It's second only to Calgary among major cities for drawing people from out-of-province.
Most came from Ontario, followed by New Brunswick. Only half as many moved to Halifax from the rest of Nova Scotia.
Combined with immigrants, almost one in 10 residents of Halifax arrived from outside Nova Scotia in the last five years. That's close to the percentage of newcomers found in Edmonton and Toronto. Only Calgary and Vancouver have more.
'National city'
"The face of Halifax is changing," said Fred Morley, chief economist with the Greater Halifax Partnership. "We're becoming a national city, not a provincial city."

He noted that last month, the Conference Board of Canada ranked the most attractive Canadian cities for people to live in. Halifax was rated the seventh-most "magnetic" city out of 27. No smaller cities got a higher ranking.
Morley said the biggest draws in Halifax are universities, colleges and the military. Dalhousie University now gets more than half of its students from outside Nova Scotia.

That presents a "staggering opportunity" that other cities would love to have.

Some stick around when their studies are finished, but the city needs to do a lot better at retaining its young, educated workforce if it's going to prosper, he said.

"The good news is they want to stay. The challenge is to find ways to integrate them," Morley said. "We could do a lot more on all fronts to start nailing people's feet to the ground."

Other than campus activities and specials at downtown bars, Halifax does little to welcome students, he said. Some businesses participate in co-op programs, but there are not a lot of ties between employers and schools.

Job opportunities

While there are some job opportunities, more are needed, Morley said. Anticipated growth in the financial-services sector might help. Incomes are around the national average, but workers can do a lot better in Alberta.

Alberta and Ontario are drawing many people from Halifax and the rest of the province. The Statistics Canada figures reveal that Halifax is near the bottom among Canadian cities for drawing people from its own province.

Only 3.8 per cent of Halifax residents in 2006 moved from other parts of Nova Scotia since 2001. That's 13,330 people, compared with 26,435 who came from other provinces.

"This perception that Halifax is sucking people out of other parts of the province, perhaps to the detriment of rural areas, is not really true," Morley said.

Nova Scotia lost 55,040 people to other provinces over the five-year period, and drew 48,035. The net drop was 7,005.

Morley said if people are leaving rural areas, Nova Scotia would be better off if they chose Halifax rather than Calgary or Toronto. He said it's a "warning sign" that people would bypass the capital and move to other cities.

Western Canada is an attractive draw, he said. Wages are higher, and there are jobs for unskilled workers.

Morley said Halifax needs to focus on drawing people back to Nova Scotia.

"What we need to attract people back is good, solid career opportunities."

bflinn@hfxnews.ca

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Halifax
Rest of province: 3.8%
Other provinces: 7.5%
Outside Canada: 2.3%
St. John's, N.L.
Rest of province: 9.9%
Other provinces: 5.8%
Outside Canada: 1.3%
Moncton
Rest of province: 12.4%
Other provinces: 6.0%
Outside Canada: 1.2%
Montreal
Rest of province: 13.5%
Other provinces: 1.1%
Outside Canada: 4.8%
Ottawa
Rest of province: 6.7%
Other provinces: 4.5%
Outside Canada: 3.8%
Toronto
Rest of province: 11.2%
Other provinces: 1.3%
Outside Canada: 8.6%
Winnipeg
Rest of province: 4.5%
Other provinces: 3.5%
Outside Canada: 4.2%
Saskatoon
Rest of province: 10.4%
Other provinces: 4.8%
Outside Canada: 2.4%
Edmonton
Rest of province: 10.0%
Other provinces: 6.3%
Outside Canada: 3.7%
Calgary
Rest of province: 5.7%
Other provinces: 8.0%
Outside Canada: 6.3%
Vancouver
Rest of province: 12.0%
Other provinces: 3.0%
Outside Canada: 8.3%
- Source: Statistics Canada

Oct 2007 _ NSAR

Highest October ever for national MLS® home sales

National MLS® resale housing activity in October 2007 reached its highest level on record for the month of October and sales remain on track for a new annual record, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted sales climbed 1.3 per cent compared to the previous month to 41,871 units in October 2007. The monthly increase resulted from strengthened activity in Ontario and Quebec, which more than offset fewer sales in British Columbia and Alberta. Transactions reached their second highest monthly level ever in Manitoba, Nova Scotia and Newfoundland and Labrador.

Actual (unadjusted) sales activity in October was up eight per cent compared to the same month last year – the highest level on record for the month of October. Sales have remained above year-ago levels in almost every month this year, putting activity on track for a new annual record in 2007.

Transactions for the year-to-date in October numbered 460,397 units, up 8.4 per cent from the same period last year. Year-to-date activity continues to run ahead of year-ago levels in all provinces except Alberta. Activity in the first ten months of 2007 has already surpassed all previous annual totals in Saskatchewan, New Brunswick and Newfoundland and Labrador.

The national MLS® residential average price rose 11.1 per cent year-over-year in October to $313,442. Average price reached the highest level for the month of October in every province, and broke all previous monthly records in British Columbia, Saskatchewan, Quebec and Newfoundland and Labrador.

“CREA’s analysis shows prices setting new records in every province in 2007 and in 2008, but price increases will be smaller in 2008” says CREA President Ann Bosley. “ In effect, price increases will become smaller as the resale housing market becomes more balanced.”

Seasonally adjusted MLS® residential new listings edged up 0.4 per cent from levels recorded in September to 71,567 units in October – the second highest level on record. In keeping with the trend for sales activity, the monthly increase in new listings in Quebec and Ontario offset a monthly decline in new listings in British Columbia and Alberta.

Sales activity increased more than new listings in October, which caused the market to tighten slightly compared to September. The MLS® resale housing market remains tightest in Manitoba, and most balanced in Alberta.

Seasonally adjusted MLS® residential dollar volume rose 1.5 per cent in October 2007 compared to the previous month to reach $13.2 billion, the sixth highest level on record. MLS® dollar volume set new records Manitoba and Newfoundland and Labrador, and posted its second highest ever levels in Ontario and Nova Scotia.

“Sales activity on October posted a monthly increase in almost every province east of Saskatchewan,” said CREA Chief Economist Gregory Klump. “Although down from its peak reached earlier this year in almost every province, activity is still very high. This shows that homebuyer sentiment remains upbeat. The continuation of low interest rates and rising incomes will support activity next year, even as prices continue rising and job growth softens.” (CREA 30/11/07)

Police are reviewing security tapes and charges are expected after a major brawl shut down Auburn Drive High School in Cole Harbour today.

RCMP say several people, some students, others not, were involved in a fight in the hallway outside the cafeteria. The incident soon spread to other parts of the school.

"There were several altercations taking place outside the cafeteria area and just outside the building," said Cpl. Joe Taplin.

"What we're investigating is that several non students showed up at the school and there was an altercation that took place."

It's not clear how many were arrested but police say more than a dozen people were involved in the altercation.

"Right now we're working with school officials to try and determine who was involved in the altercation," said Taplin.

Some students said they were told to stay in their classrooms for up to two hours while police investigated. Several students left early.

One Grade 10 student said she didn't see the fight, but added that it's made her more fearful.

"It's starting to get scary now because you don't know what's going on, you don't know when it will happen or what will happen," said Taylor Dulmage.

Kathleen Higgins, president of the student council, said it was unusual for the school to see such violence.

"A lot of fighting has been going on," said the Grade 12 student. "It started around last week. We know that Auburn is better than this and we've never really had this issue in the past."

Shaune McKinley, a spokesperson for the Halifax Regional School Board, said some of the participants in the brawl managed to get away as police arrived.

"Some of the people who came in to the building quickly fled. There's going to be some efforts to catch up with them and ask them some questions," said McKinley.

"RCMP were on site today as a precaution. There's no question the response was very quick, this was contained very quickly and there were no serious injuries."

Classes have been cancelled for the rest of the day.

The brawl, which began at 1:10 p.m., is believed to be part fo a feud that had been brewing for several days. A fight between two males kept students in their classrooms for almost an hour on Monday.

There were no weapons involved, and neither teen was hurt badly.

Daily News November 2007
Commercial property outlook strong
Analyst predicts booming economy will carry over to real estate market

ANDREA MACDONALD

A booming economy spells a continued hot streak for commercial real estate in Nova Scotia, an industry expert told a market outlook breakfast yesterday in Halifax.Bob Mussett, senior vicepresident and senior managing director for CB Richard Ellis Canada, said retail will remain strong in 2008, although slowing development could alter the picture.Record corporate profits have been the main driver for real estate in the last year, replacing consumer spending, he told the business crowd.He forecasts a continuation of the "positive forces" identified last year, noting that business-to-business spending is stronger; balance sheets are flush, while office, retail and industrial users are expanding and reinvesting in their businesses.Hotels are likely to stay flat, however, as Americans adjust to the higher Canadian dollar. Meanwhile, new hotels will put pressure on older properties.Availability will drop slightly on the industrial side while rental rates will increase slightly, as tenants pay more for new, efficient space.
"Investment appetite will remain high, although as a broker I'm sorry to say very little of this space comes to market," Mussett said.Residential activity will remain somewhat flat as new product is introduced to the market."For investment, the market remains strong and for the right asset, there will be aggressive bidding. Cap rates will remain low; we're looking at historic comparables based on tougher underwriting and operating costs and things."
Mussett noted that office vacancy rates in Halifax's central business district have dropped 60 per cent in three years - plummeting from 13.5 per cent to 5.5 per cent.The suburban market is "on fire," with 500,000 square feet of new space in the pipeline. CB Richard Ellis believes the expansion of Asian markets will strengthen regional port activity."With this landscape, we continue to be bullish on office trends for 2008, but expect as the pendulum swings, adding all of this new space and alternatives, it will shift to a tenant's market in 2009-2010," Mussett said.He admitted the company got some predictions wrong last year, such as forecasting falling vacancy rates for multi-residential dwellings, when in fact they rose. Mussett also pointed out the record-breaking MLS activity this year."Concern over rising mortgage rates clearly did not materialize - a very different landscape than the U.S."

Daily News October 2007
Construction up
A sharp increase in residential construction in September has contributed to an increase in overall starts through the first three quarters of 2007 as compared to 2006. According to Canada Mortgage and Housing Corporation preliminary data released yesterday for Nova Scotia's urban areas with a population over 10,000, there were 383 total housing starts last month compared with 245 in September 2006 - a 56 per cent increase. In urban centres across Canada in September there were 22,031 total housing starts, 44 per cent more than the 15,322 starts in September 2006.