U.S. housing starts moderate in January after the previous month’s surge; producer prices inched higher in January
- Housing starts declined by 8.5% to an annualized pace of 890,000 units in January 2013 and missed market expectations for a modest drop to 920,000 units.
- Building permits increased by 1.8% in January to an annualized 925,000, slightly stronger than market expectations for a reading of 920,000, and represented the highest level since June 2008.
- Some moderation in homebuilding was expected to kickoff 2013 after the sharp acceleration at the end of 2012, with the upward revisions to the previous month bringing the quarterly increase in starts to an annualized 84% in the fourth quarter of 2012. We anticipate that the pullback in
QualificationsYou may qualify for the bonus if you meet all of the following criteria:
- You purchase or build an eligible new
- Existing home sales in the US unexpectedly slipped by 1.0% to 4.94 million annualized units in December 2012 from a revised 4.99 million (previously reported as 5.04 million) in November. Market expectations had been for sales to rise to 5.10 million in December.
- The drop in sales was outpaced by an 8.5% decline in the number of homes available for sale in December. With inventories falling faster than sales, the months’ supply of unsold homes declined to 4.4 from 4.8 in November. This marked the lowest months’ supply since May 2005.
- Consistent with tightening inventories as well as a declining share of distressed property sales, the median price of existing homes jumped by 11.5% on a
A few things you need to know when Buying or Selling US Real Estate
FIRPTA FOR SELLERS: As a Canadian selling your home, the US Government takes 10% withholding tax on any home/condo that a foreigner sells... How do I prevent 10% withholding tax?
- File a 8288 form found at irs.gov
- Ask yourself these 3 questions: If yes to all 3 questions -- the Canadian seller MAY be exempt from paying the US Government 10% withholding tax
- Is the condo/home I am selling under $300,000 US?
- Is my condo/home a residential property?
- Is the buyer of my condo/home going to occupy as a primary/secondary owner? (so, if the buyer is going to turn the home/condo into a rental -- you now just lost your exemption)
FIRPTA AS A BUYER: If you are a…
Ron's candid thoughts:
While statistics indicate relative price stability, our experience continues to confirm that sellers in distress are competing for the relatively scarce ready, willing and able buyers. Increasingly while the average sale price shows only a few percentage points decline, what Buyers are actually getting for their money has changed significantly, particularly over the last six months since the mortgage rule changes. Having said that, I’m seeing an increasing sentiment of it being a good time to buy and on our team we experienced a flurry of activity finishing the year with a busy December even getting an offer together on Christmas Eve. Nationwide consumer sentiment seems to be generally optimistic according to reports from…
Your government is increasingly worried about you getting into the housing market, if you haven’t figured it out by now. Ottawa has made it harder for you to get credit and is trying to limit how much debt you can take on. Has the message sunk in yet? The real estate industry says yes, and points to a dramatic drop in sales over the past few months as proof new mortgage regulations have stifled the market. The lesson for consumers is to tread slowly.
It’s a reality check for a lot of buyers in the market for what they could realistically afford
Gregory Klump, chief economist at the Canadian Real Estate Association, agrees there is little doubt the government has cast its eye at the first-time buyer. “They are the ones that generally take out…