Archive for September, 2009

Market Update September ‘09

Friday, September 18th, 2009

Rates will begin to rise early in 2010.

 

Should end up at about 6%, a 50% increase from today.

1. Mortgage interest rates should start going up in January when the bond market starts to

expect and price in the expected inflation.

2. Prime should stay at 2.25% until June 2010 as the Bank of Canada has suggested that they

will not change the rate before then.

3. Buy a home, or renew an existing mortgage, in the next 4 months to take advantage of this

once in a life time opportunity due to the last year’s financial crisis.

Mortgage fixed rates to rise. The US has increased their money supply by 50% in just 1 year which is

textbook inflationary. They have also printed money to buy their own bonds, which is double textbook

inflationary. These actions have not yet caused the inflation that everyone expects but it is on the way.

As soon as the market starts to price in the costs of these actions the mortgage bond rates will rise and

so will the mortgage rates. Rates should start go up in January to about 6% or so for a 5 year fixed rate.

Prime will stay at 2.25% until June, 2010. The Bank of Canada (BoC) has stated that they will try to

hold Prime at the low emergency rate of 2.25%. This is a key part of the financial stimulus and has

been keeping the economy alive. Removing this stimulus too soon could undo the positive effects that

the spending has achieved so far. This is why the BoC has stated that they will leave it as is, even if

other rates begin to rise. The other reason is that Canadian banks needed to know what the cost of

funds was going to be so they could in turn loan funds to further stimulate the economy. Consumers

who wait for Prime to rise before locking in their variable rates will be disappointed as rates will have

already go up as noted above.

Buy or refinance before 2010. Today’s rates are emergency interest rates as we have just gone

through the worst financial crisis since the Great Depression. These are once-in-a-life-time rates that

we should not see again in our life time. Buying before 2010 will allow you to take advantage of newly

adjusted lower home prices and the low interest rates as well.

Renewing an existing mortgage that is in year 3, 4, or 5 of a 5 year term and paying the 3 month

interest penalty now will produce savings because you can fix your new mortgage rate at the lowest

they have been for 70 years. You will also not renew later into the rates that will be around 6%.

Another Reason to Buy Soon. Homeownership costs in Alberta have dropped to levels that were last

seen 3 years ago, further boosting the resale market. This is “the biggest cumulative drop in the history

of the RBC Affordability Index, reaching levels that were last seen in late 2005″ said Robert Hogue,

senior economist, RBC. “In response, buyers have jumped back into the housing market in a big way

since the spring, sending existing home sales soaring over 60 per cent between April and July.”

Mark Herman; AMP, B. Comm., CAM, MBA _ Accredited Mortgage Professional _

One of the Top-10 Brokers at Canada’s Largest Independent Mortgage Brokerage for ’07 and ‘08

Mortgage Alliance _ Mobile: 403-681-4376 _ Secure e-Fax: 1-866-823-1279

Calgary Metro Home Prices Edge Upwards

Friday, September 11th, 2009

Market rebounds on news that the worst of recession is over

 Calgary, September 1, 2009 – Calgary metro home prices made the first year-over-year increase on a monthly basis since February 2008 according to figures released by the Calgary Real Estate Board (CREB®). Prices received an added boost from the sale of a $10.3 million home earlier this month.

“Calgary’s housing prices are edging upwards as consumer confidence improves and demand continues to grow”, says Bonnie Wegerich, President of the Calgary Real Estate Board.  “The recent $10.3 million-sale has undoubtedly boosted the average price this month, but even without this sale the average price is higher than a year ago.”

The average price of a single family Calgary metro home in August 2009 was $454,130, showing an increase of 4 per cent from July 2009, when the average price was $436,782, and showing an increase of 3 per cent from August 2008, when the average price was $440,625. The average price of a Calgary metro condominium was $283,330 showing a 1 per cent decrease from July 2009, when the average price was $285,032 and a decrease of 2 per cent over last year, when the average price was $287,832. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The last time prices showed a year-over-year increase was February 2008 when single-family homes rose by 5.2 per cent from February 2007 to $471,696 and condos increased by 3.3 per cent from February 2007 to $311,812.

The average price of a single family Calgary metro home in August 2009 without the $10.3 million-sale would be $446,413—coming in just above the average price one year ago.

“We might see a gradual edging up in average prices come this fall, but on the whole, prices will most likely remain relatively stable. With our inventory at about a three-month supply, the market continues to be in balance,” added Wegerich.

The number of single family homes and condos sold in August in Calgary metro are also both up from the same time a year ago.

Typically a slower month for sales, August saw 1,277 single family homes sold in Calgary metro. This is an increase of 9 per cent from August 2008, when single family home sales were 1,170. This is a decrease of 19 per cent from 1,585 sales in July of this year. The number of condominium sales for the month of August 2009 was 632, an increase of 28 per cent from August 2008 when 495 condominiums changed hands. This was a decrease of 10 per cent from the 702 condominium transactions recorded last month.

“We are seeing an upward revision of our housing market forecasts at the national level,” says Wegerich.  “I think it is fair to say the recovery in the market has been a little brisker then first expected—and all signs indicate the rebound, all be it gradual, will have some longevity.”

Single family Calgary metro new listings added for the month of August totaled 1,910, a decrease of 9 per cent from July 2009 when 2,089 new listings were added, and showing a decrease of 16 per cent from August 2008, when 2,270 new listings came to the market. Calgary metro condominium new listings added in August 2009 were 832, down 9 per cent from July 2009, when the MLS® saw 918 condo listings coming to the market. This is a decrease of 21 per cent from August 2008, when condominium listings were 1,054.

The median price of a single family Calgary metro home in August 2009 was $400,000, showing an increase of 3 per cent from July 2009, when the median price was $390,000, and up 1 per cent from August 2008, when the median price was $398,000. The median price of a condominium in August 2009 was $260,000, down 1 per cent from July 2009, when the median was $263,000, and down 3 per cent from August 2008, when the median price was $268,500. All Calgary metro MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“All in all we are optimistic about the fall market.  Low mortgage rates, government incentives and realistic pricing on the part of sellers are contributing to healthy sales numbers—as is the recent boost in consumer confidence on news that the worst of the economic slowdown is over,” says Wegerich.

CREB® is a professional body of 5,445 licensed brokers and registered associates, representing 252 member offices. The Board does not generate statistics or analysis of any individual member or company’s market share. All MLS® active listings for Calgary and area may be found on the Board’s website at www.creb.com.

The full statistics package can be found on REALTORLink® here.

CREB® Communications

 

 

Preparing to Sell

Friday, September 11th, 2009

Sellers: Get your House In Order:

In most areas, the days or quick sales and “name your price” are over. A little preparation before you list will help you get a satisfactory price within a reasonable time and will reduce stress of selling

– Make Finishing Touches – Most buyers want a home in move-in ready condition. Complete unfinished jobs and make sure everythings in good working order – no squeaks, drips, or cracks. Consider booking a pre-listing inspection allowing sufficient time to correct any weakness.

– Clean it Up! – To help spark offers, remove all clutter and give a thorough cleaning. A fresh coat of paint in a neutral colous can work magic.

-List at the RIGHT price – Work with your agent to evaluate your home. You’ll generate more immediate interest if it’s prices appropriately for your area.

– Anticipate Conditions – Take time now to think about potential conditions that might be placed on an offer – for example closing date, repairs, & financing. You’ll be better able to respond quickly if you’ve though about your own needs already.

Why you NEED a strong team more than ever!

Friday, September 11th, 2009

Never has it been more important to assemble a strong tea, if you are buying or selling a home. There are the professionals to call upon to help you make better decisions, while maintaining your target budget in todays market. Make sure the team includes:

– Real Estate Agent – Provide expert knowledge of the geographical area and type of home you want. Offers insight on home values, pricing, and negotiating strategies and new listings.

– Mortgage Broker – Helps assess and understand your financial needs and home ownership goals. Reviews whats available across a wide range of mortgage lenders, to find the  appropriate financing options for your situation.

-Home Inspections –  Ensures that you are aware of the true conditions of the home you wish to buy, so you;ll gave all the facts in front of you. It can also help sellers understand and address areas that may be of concerns for a buyer.

Lawyer – Makes sure you understand conditions and terms before you sign leagl paperwork and ensures your property in proptected during transfer.

 

Preparing to BUY!

Friday, September 11th, 2009

Buyers : Know your Numbers

If you’re planning to buy a house or condo, a little research gives you confidence that you know what you;re getting and that the price is fair.

  Talk to your broker – This is the right time to visit your mortgage broker to prearrange your mortgage and lock in a low interest rate. You’ll also learn how much you will be eligible to borrow. Plus, you’ll be able to design a mortgage that will suit your needs.

  Set A limit – Knowing your upper limit for a morgageg, together with the amount of your down payment and estimates for utilities and taxes , will tell you how much home you can afford and are comfortable carrying.

  Know your neighbourhood – Get to know your desired area, identifying both trouble spots and the best streets. Ask your agent to provide some actual selling prices in those areas.

  Make your wish list – Choosing and buying a home usually incolves trade-offs, even in a buyers market. View listings and visit a couple of open houses to spark discussion and zero in on whats really important to you.

The bottom line for buyers and sellers alike? the better prepared you are,the more likely you are to be satisfied with the outcome.

 

Coventry Hills Townhouse – $299,900

Wednesday, September 9th, 2009

This unit shows 10 /10! This very well maintained original owner, non-animal, non-smoker’s house is in the desired Community of Coventry Hills. The main floor offers an open plan with upgraded kitchen that includes stainless steel appliance, maple cabinets & breakfast bar. The main floor also offer a 2 piece bath, a large living/dining room area with patio doors that lead out onto a green space. The upstairs offers 2 spacious bedrooms with walk in closets and a large 4 piece bathroom. The basement is undeveloped and ready for your creative touch. This unit also offers hardwood floors, ceramic tile back splash, built in sound system, roughed in wiring for a security system,single attached garage , upgraded maple railings and a park view. This property is in a great location close to major road ways, public transit, schools, playgrounds, shopping, restaurants, golf, Cardel Place Recreational Center & Movie theater. All appliances are included. This unit is in mint condition, don’t miss this opportunity.

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Calgary Metro Home Prices Edge Upwards

Tuesday, September 1st, 2009

Market rebounds on news that the worst of recession is over

 Calgary, September 1, 2009 – Calgary metro home prices made the first year-over-year increase on a monthly basis since February 2008 according to figures released by the Calgary Real Estate Board (CREB®). Prices received an added boost from the sale of a $10.3 million home earlier this month.

“Calgary’s housing prices are edging upwards as consumer confidence improves and demand continues to grow”, says Bonnie Wegerich, President of the Calgary Real Estate Board.  “The recent $10.3 million-sale has undoubtedly boosted the average price this month, but even without this sale the average price is higher than a year ago.”

The average price of a single family Calgary metro home in August 2009 was $454,130, showing an increase of 4 per cent from July 2009, when the average price was $436,782, and showing an increase of 3 per cent from August 2008, when the average price was $440,625. The average price of a Calgary metro condominium was $283,330 showing a 1 per cent decrease from July 2009, when the average price was $285,032 and a decrease of 2 per cent over last year, when the average price was $287,832. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The last time prices showed a year-over-year increase was February 2008 when single-family homes rose by 5.2 per cent from February 2007 to $471,696 and condos increased by 3.3 per cent from February 2007 to $311,812.

The average price of a single family Calgary metro home in August 2009 without the $10.3 million-sale would be $446,413—coming in just above the average price one year ago.

“We might see a gradual edging up in average prices come this fall, but on the whole, prices will most likely remain relatively stable. With our inventory at about a three-month supply, the market continues to be in balance,” added Wegerich.

The number of single family homes and condos sold in August in Calgary metro are also both up from the same time a year ago.

Typically a slower month for sales, August saw 1,277 single family homes sold in Calgary metro. This is an increase of 9 per cent from August 2008, when single family home sales were 1,170. This is a decrease of 19 per cent from 1,585 sales in July of this year. The number of condominium sales for the month of August 2009 was 632, an increase of 28 per cent from August 2008 when 495 condominiums changed hands. This was a decrease of 10 per cent from the 702 condominium transactions recorded last month.

“We are seeing an upward revision of our housing market forecasts at the national level,” says Wegerich.  “I think it is fair to say the recovery in the market has been a little brisker then first expected—and all signs indicate the rebound, all be it gradual, will have some longevity.”

Single family Calgary metro new listings added for the month of August totaled 1,910, a decrease of 9 per cent from July 2009 when 2,089 new listings were added, and showing a decrease of 16 per cent from August 2008, when 2,270 new listings came to the market. Calgary metro condominium new listings added in August 2009 were 832, down 9 per cent from July 2009, when the MLS® saw 918 condo listings coming to the market. This is a decrease of 21 per cent from August 2008, when condominium listings were 1,054.

The median price of a single family Calgary metro home in August 2009 was $400,000, showing an increase of 3 per cent from July 2009, when the median price was $390,000, and up 1 per cent from August 2008, when the median price was $398,000. The median price of a condominium in August 2009 was $260,000, down 1 per cent from July 2009, when the median was $263,000, and down 3 per cent from August 2008, when the median price was $268,500. All Calgary metro MLS® statistics include properties listed and sold only within Calgary’s city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

“All in all we are optimistic about the fall market.  Low mortgage rates, government incentives and realistic pricing on the part of sellers are contributing to healthy sales numbers—as is the recent boost in consumer confidence on news that the worst of the economic slowdown is over,” says Wegerich.

CREB® is a professional body of 5,445 licensed brokers and registered associates, representing 252 member offices. The Board does not generate statistics or analysis of any individual member or company’s market share. All MLS® active listings for Calgary and area may be found on the Board’s website at www.creb.com.

The full statistics package can be found on REALTORLink® here.

CREB® Communications

 

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Calgary Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.
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