November 21, 2007
Information provided by Globe & Mail
After three successive months of declines, sales of existing homes in Canada unexpectedly reversed course in October, gaining 1.3 per cent from the previous month.
The gain is most likely an aberration rather than a sustainable trend, however, and sales are expected to decline gradually for the rest of the year and in 2008, said Gregory Klump, chief economist at the Canadian Real Estate Association (CREA).
"The rebound was particularly surprising because it was spread right across the country in a number of major markets," Mr. Klump said. "However, we are still expecting that sales will gradually erode, primarily due to a decrease in affordability."
Sales of resale homes rose to 28,966 units in October, a 7.6-per-cent increase from the same month last year, according to statistics from CREA.
Activity rose in Toronto, Edmonton, Hamilton-Burlington, Montreal, Quebec City and Winnipeg. Stronger sales in these markets offset declines in Calgary, Vancouver, Saskatoon and Sudbury - cities that have experienced huge home price increases in the past year.
The average price of a resale home in Canada rose 10.6 per cent to $333,544 in October from last year, the sixth consecutive month in which the increase has exceeded 10 per cent.
In Toronto, Regina, Saskatoon and Montreal, average prices reached their highest levels on record.
Sales activity in most major centres has been strong at the high end of the market, probably because there's a dwindling supply of lower-priced homes left in many cities, Mr. Klump said.
Listings of residential properties on the Multiple Listing Service decreased slightly in October from September, but they still reached their fifth-highest monthly level on record.
"Negotiations still favour the seller in nearly all major markets," Mr. Klump said.
Sales levels are expected to edge down as higher home prices and rising mortgage rates continue to squeeze buyers out of the market. The posted rate on a five-year mortgage at the big banks is currently sitting at 7.44 per cent - 1.5 percentage points higher than where it was in April.
While sales activity is expected to slow next year, it should still be a strong year, Mr. Klump said.
"This will be a gradual slowdown but it doesn't portend disaster. [Next year] is still expected to be one of the best years on record, second only to 2007," he said.
November 09, 2007
If you are looking to watch Dan Eisners' presentation on the Dragon's Den you can view it at
You can also view an interview with Dan Eisner done with Kemton
November 06, 2007
All of us at True North Mortgage wish to thank everyone for the support and well wishes we have received from across Canada. We would especially like to thank ING Direct and our many other lenders for their continued support.
We are grateful that CBC allowed us to pitch our business on the Dragons' Den and extend our gratitude to the dragon's who showed their support for our business by making an investment offer. You can learn more about us at www.truenorthmortgage.ca.
Many of you are likely curious to know the results of the dragons' offer and how things proceeded after the show was taped in June.
The due diligence process was completed by the end of July and went fairly quickly and smoothly. We were given a letter of intent which very closely matched the offer made on the show. It included investments from Jim, Arlene and Kevin whom offered us a $250,000 debenture (loan) convertible into 50% of the company's shares at the Dragon's option.
However, the letter of intent did not include many of the details that we required in order to ensure the ongoing support of the Dragons. We went back to the Dragons numerous times with additional clauses but were repeatedly rebuffed.
Thus, after much deliberation we decided not to go ahead with the deal.
We could not get comfortable with the level of proactive leadership and tangible management support we would receive from the Dragons in the future given the level of equity we were giving up and the very modest valuation the Dragons' were willing to place on this business. (~0.70 of 2007 EBITDA, for you MBA dudes)
True North Mortgage continues to grow organically, with a second store scheduled to open in February of 2008 and a third by mid 2008. The new stores will be located in the Calgary downtown core.
If you are a skilled mortgage broker located in Calgary and have previous banking experience and good attitude, please send you resume and cover letter to firstname.lastname@example.org
We serve Canadians from coast to coast through our website at www.truenorthmortgage.ca. For ?No Fees, Great Rates? please check us out.
The Team at True North Mortgage