Canada Home Buyers should focus on Real Estate Stats for their Favourite Communities and Neighbourhoods, NOT National Averages according to Century 21

Avoiding the Canadian Real Estate Statistics Trap: First Time Canada Home Buyers Advised to Focus on Stats in their Favourite Neighbourhoods

An excellent advertorial from the Canadian Real Estate Magazine published by Don L, the president of Century 21 in Canada. The recession that brought job losses and uncertainty to millions of Canadians this winter is bringing the best springtime property opportunity in years for the first time home buyers in Canada. With interest rates the lowest we’ve seen since 2005 coupled with a large supply of homes for sale in almost all communities across all Canadian real estate markets, now is a good time for Canadians who are looking to enter the housing market. However, before you lay down your money, keep in mind that you must focus on prices and features of homes in your favourite neighbourhoods first. Don’t allow national, provincial or major city house price statistics to influence your decision making, because they’re really not that relevant. The Canadian housing real estate market is made up of thousands of local markets, but the most important to you is the neighbourhood in which you wish to live. Canadian home price trends in those property markets may be quite different from the national stats. For example the Canadian Real Estate Association (CREA) issues a monthly home price survey that is authoritative and extensively covered in the media. In mid-March, CREA reported that the national Canadian average price for home sales via the MLS in February 2009 was $281,972, down 9.2% compared with February 2008. The same CREA report for Canada’s 25 major real estate markets showed that average prices in February 2009 compared with February 2008 declined in 13 property markets and increased in 12 markets with the range being a decline of 13.3% in Greater Vancouver to an increase of 27.7% in Newfoundland and Labrador.

The dramatic variance in the major Canadian real estate market statistics demonstrates how national average prices can be quite removed from local and neighbourhood markets. In addition, ‘averages’ themselves can be misleading. For example, suppose five homes in a neighbourhood recently sold for $200k, $220k, $260k, $290k and $500k, the average of these new homes is $294k. The $500k sale is obviously not a typical home in this neighbourhood and skews the average higher than it should be. If the $500k sale is omitted, the average home becomes $242k, a more accurate indicator of the value of typical homes in this neighbourhood. A similar skewing of averages occurs regularly in the statistics we see reported in the news. First time Canadian home buyers would be well advised to not dwell on home price survey averages and rather to look deeper for local and neighbourhood stats more applicable to them and their situation in their home purchase process. First time Canadian homebuyers should also unertake their own surveys, starting with an online search to gather information about the homes for sale in their favourite neighbourhoods. The CENTURY 21 Canada website at www.century21.ca gives Canadian home buyers’ easy and free access to a powerful and consumer friendly real estate search engine. In addition, work with a local realtor who can provide statistics on selling prices of homes with features you desire in your favourite neighbourhoods. The CENTURY 21 System is comprised of more than 8.400 independently owned and operated franchised broker offices in 58 countries and territories, with more than 142,000 sales representatives worldwide. Each of our CENTURY 21 System members exemplifies local Canadian real estate expertise and has the highest standard of customer care to help Canadian home buyers onto the path to their dream home. And don’t forget – CENTURY 21 Canada is the only Canadian real estate organization that can reward you with AIR MILES reward miles. Start your Canadian home search at century21.ca today.