Canadian real estate markets elude US collapse - PWC Report, down 10-20% only .. but uptick maybe higher in Europe or US ! Options

[ThomasBeyer]

Latest research by PWC (Price Waterhouse Cooper):

TORONTO, Nov. 11 /CNW/ - While conservative banking practices and stricter regulation kept lending in check and most Canadian real estate investors were saved from overleveraging, they are still worried about suffering more economic shocks if the US can't get its financial house in order more quickly. This, according to the annual Emerging Trends in Real Estate 2010 report, released by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI).

The report reflects interviews with and surveys of more than 900 of the industry's leading real estate experts, including investors, developers, lenders, brokers and consultants in both Canada and the US. Other versions of this report are conducted in countries around the world including Asia Pacific and Europe.

According to the report, total value losses in Canada will average 10 to 20 % off previous highs but some markets and sectors could suffer steep losses. Markets should enter a slow recovery phase by year-end 2010, but respondents see better investment opportunities eventually in top US and European cities, which could rebound more sharply after steeper declines.

"The conservative, careful approach to managing government and markets is paying dividends now for Canadian real estate players," says Frank Magliocco, leader of the PwC Canada Real Estate practice. "Sideswiped by the US fallout, they experienced a manageable market correction rather than a full-blown credit crisis-precipitated market meltdown."

...

Read on: http://www.newswire.ca/en/releases/archive...9/11/c8060.html

Markets to Watch

The Vancouver market is considered to be the higher performing of all regions, albeit at only a slightly above fair rating for commercial and multifamily investment and development (5.75 out of 10 for investment prospects and 4.68 for development prospects). Many wonder what will happen after the Olympics.

Toronto ranks third highest with better investment prospects (5.63) than development prospects (3.83). Indeed, new condominium high rises and office tower projects adorn downtown streetscapes, raising concerns about too much construction in a problematic economy.

Single-family home and condo buyers are surging to make deals before a new harmonized sales tax (HST) takes effect on July 1, and developers fear a demand drop-off afterwards. Warehouse markets have stumbled-with rents declining 25 to 30%.

Montreal ranks fifth as the real estate market sleepwalks through equilibrium-measured development and limited demand growth. Investment prospects rate an almost exact fair at 5.05 and development prospects fall to 3.53.

Calgary, Alberta's largest city suffers the biggest rating decline for any North American market in Emerging Trends surveys (investment prospects 4.75 and development at 3.58) About 6 million square feet of office comes online at just the wrong time. Condos and housing are overbuilt, too.
...

This post has been edited by ThomasBeyer: Nov 11 2009, 04:49 PM

[Millions]

After reading this report, it seems as though if you bought anytime in the last 2-3 years, you should consider selling while the market is a little hot?

insights?

TORONTO, Nov. 11 /CNW/ - While conservative banking practices and stricter regulation kept lending in check and most Canadian real estate investors were saved from overleveraging, they are still worried about suffering more economic shocks if the US can't get its financial house in order more quickly. This, according to the annual Emerging Trends in Real Estate 2010 report, released by PricewaterhouseCoopers (PwC) and the Urban Land Institute (ULI).

The report reflects interviews with and surveys of more than 900 of the industry's leading real estate experts, including investors, developers, lenders, brokers and consultants in both Canada and the US. Other versions of this report are conducted in countries around the world including Asia Pacific and Europe.

According to the report, total value losses in Canada will average 10 to 20 % off previous highs but some markets and sectors could suffer steep losses. Markets should enter a slow recovery phase by year-end 2010, but respondents see better investment opportunities eventually in top US and European cities, which could rebound more sharply after steeper declines.

"The conservative, careful approach to managing government and markets is paying dividends now for Canadian real estate players," says Frank Magliocco, leader of the PwC Canada Real Estate practice. "Sideswiped by the US fallout, they experienced a manageable market correction rather than a full-blown credit crisis-precipitated market meltdown."

...

Read on: http://www.newswire.ca/en/releases/archive...9/11/c8060.html

Markets to Watch

The Vancouver market is considered to be the higher performing of all regions, albeit at only a slightly above fair rating for commercial and multifamily investment and development (5.75 out of 10 for investment prospects and 4.68 for development prospects). Many wonder what will happen after the Olympics.

Toronto ranks third highest with better investment prospects (5.63) than development prospects (3.83). Indeed, new condominium high rises and office tower projects adorn downtown streetscapes, raising concerns about too much construction in a problematic economy.

Single-family home and condo buyers are surging to make deals before a new harmonized sales tax (HST) takes effect on July 1, and developers fear a demand drop-off afterwards. Warehouse markets have stumbled-with rents declining 25 to 30%.

Montreal ranks fifth as the real estate market sleepwalks through equilibrium-measured development and limited demand growth. Investment prospects rate an almost exact fair at 5.05 and development prospects fall to 3.53.

Calgary, Alberta's largest city suffers the biggest rating decline for any North American market in Emerging Trends surveys (investment prospects 4.75 and development at 3.58) About 6 million square feet of office comes online at just the wrong time. Condos and housing are overbuilt, too.
...