Mortgage Blog - Real Estate
Why Sell Your House When You Can Refinance and Renovate?
July 30, 2010 by Dania Spillett
We all know lives change and so do people’s needs. Whether it be an expanding family, a desire to rent a suite, add a sun room or other possible features, homeowners often come to a point where their current home leaves something to be desired. When such homeowners decide they need more space or want to make some changes to their living environment, they often set out in search of a different and better suited property. Please know that this is NOT the only possibility and there are other options you may find. The more information you obtain the ...
Read more »Real Estate and Mortgage Market Favour Buyers
July 21, 2010 by Gordon McCallum
It seems as though many Albertans are hesitant about the housing market at the moment. We’ve heard anecdotes of people holding off on their decision to buy because they expect the housing market to soften further. That may happen, but realistically, the second half of 2010 seems to be a great opportunity for buyers. Don’t believe me? Compare today’s market to the previous peaks in 2006 and 2007:
- Mortgage interest rates are substantially lower now than they were in 2006 and 2007
- Home prices are lower than they were in 2006 and 2007
- Real estate inventory is ...
Tips to Keep Your Rental Unit Rented
July 12, 2010 by Dania Spillett
If you’ve found it a little more difficult to find tenants for your rental properties this year, you’re not alone. According to the Canada Mortgage and Housing Corporation (CMHC), vacancy rates rose to 2.9% in Canada in April, compared to 2.7% a year earlier. While that doesn’t sound like much, it should be noted that different markets have drastically different vacancy rates. For example, Windsor landlords are dealing with a 12.4% vacancy rate right now, while those in Quebec City are enjoying a 0.4% vacancy rate.
Whether you’re in a tough rental ...
Read more »Decline in Canadian Housing Resales
June 17, 2010 by Dania Spillett
As predicted, home resales fell in May due to a variety of economic factors such as an increase in interest rates. More significantly, May was the first month the tighter mortgage regulations have been in place. The Canadian Real Estate Association determined that 37,576 homes were resold in May, down 9.5 percent from April and down 2.8 percent from the same month last year. They also suggest that this drop resulted, in majority, from a decline in sales in the Toronto, Vancouver and Ottawa areas.
In addition, the number of listings on the market have decreased for ...
Read more »The Condo Generation
June 8, 2010 by Dania Spillett
Thinking about buying your kids a condo? You’re not alone. According to the 4th TD Canada Trust Condo Poll, 10% of parents would contemplate buying a condo for their adult children.
The poll revealed that condos with their low maintenance needs compared to homes is the biggest motivation for Canadians (36%). Affordability comes in second as the most popular reason for condo purchases nationally (24%). Interestingly, in Vancouver, affordability is the primary reason for condo purchases (45%, up from 35% in 2009) – more than double the city’s second place reason to purchase a condo: lower maintenance (21%). This ...
Read more »Canadians Still Purchasing Recreational Properties
June 4, 2010 by Dania Spillett
Although interest rates are on the rise and there are concerns about increasing taxes, Canadians are still investing in recreational properties. Even with the new CMHC laws, Canadians seem to be motivated to achieve a better lifestyle. CMHC only require a minimum 20% down payment on a secondary home if you will be earning income from the property. If you sign a declaration stating it is your secondary residence and you will not be earning income, you can put down as little as a 5%. A nationwide survey commissioned by Royal LePage Real Estate Services showed that people are more ...
Read more »Own a US Property? The tax changes will affect you!
May 17, 2010 by Dania Spillett
Estate tax changes are coming to the US – and this can affect Canadians who own an investment or vacation property south of the border.
The tax cuts enacted by the Bush administration are scheduled to expire at the end of 2010, and estate taxes are expected to revert to higher rates that applied in 2001 and a lower estate tax exemption of $1 million.
A Canadian investor’s potential tax increase depends on the total value of their US- located property and the proportion of their US assets compared to your worldwide assets.
To learn more about US estate taxes ...
Read more »Buyer Beware - Make a Conditional Offer!
May 4, 2010 by Gordon McCallum
Unfortunately we’ve had the displeasure of seeing situations like this before. Picture this scenario: You’re a salaried, full-time employee with many years on the job, a good down payment, and excellent credit. By all means, you SHOULD qualify with no problem! In fact, you’ve even taken the proper steps to get pre-approved in advance.
You’ve found it. The perfect place. The steal of a deal. The house of all houses…and you know it’s too good to be true. The competition is fierce. Your Realtor indicates to you that there will be multiple bidders and ...
Read more »No Housing Bubble in Edmonton
May 3, 2010 by Gordon McCallum
I feel a little late to this party but it’s been awhile since I’ve had anything exciting to blog about.
In Edmonton we’re used to being Calgary’s poor cousin – at least in the media – unless it’s convenient to do so. We also happen to have one of the most promising economies in North America. We’ve got strong industry, a strong service economy, great infrastructure that’s getting better, and lots to be thankful for. Here’s one more for the list:
According to Gary Lamphier’s article in the Edmonton Journal there are three ...
Read more »Hazards of Waiving Mortgage Financing Conditions
September 20, 2009 by Gordon McCallum
In the heat of a bidding war it might be tempting to waive a condition of financing to obtain an edge over (or merely keep up with) other bidders. This isn’t always the wisest move – especially if you’re prone to emotional bidding.
Even if you’re preapproved for a mortgage, it’s not guaranteed that you’ll receive financing. Only once your lender (and mortgage default insurer, if you’re putting down less than a 20% down payment) examines the details of the property (including purchase price, taxes, condo fees, etc.) will you know where you stand in ...
Read more »Helpful Hints for Home Buyers
August 3, 2009 by Gordon McCallum
With the Canadian housing market leaping back to life and mortgage rates at an all time low it seems that there is no time like the present to buy your first home or consider a new real estate venture.
However, before you begin your quest into the realm of real estate, keep in mind these helpful hints, so you can take advantage of market opportunities while mitigating risk.
Home Sweet Home: Things to Consider Before You Begin the House Hunt
First of all, get pre-approved for a mortgage. Mortgage pre-approvals will make things easier (and quicker) when you starting bidding ...
Read more »Canadian Housing Market Expected to Slow
February 23, 2009 by Shayla Damery
We’ve seen the housing market in Edmonton (and the Canadian market in general) slow significantly since the summer of 2007 when houses were selling for over list price. According to the Canadian Mortgage and Housing Corporation, we can expect that trend to continue through 2009. CMHC predicts that the Canadian housing market will begin to rebound in 2010.
So far in 2009, housing starts have slowed. Canada-wide sales of existing homes are also expected to decrease in the neighborhood of 14.6 percent. Good news for home buyers, however, as the average Canadian home price (as listed on MLS ...
Read more »House Price Crash (Really?)
December 9, 2008 by Gordon McCallum
Well, I hate to be a harbinger of good news...but since the rest of the world seems to believe that the sky is falling, I feel it's my duty to be a voice of reason in the wilderness.
It's true. We're probably now officially in a recession. The world is in turmoil, oil is at a 3 year low (gasp!), stocks have taken a beating (good time to buy?) and house prices have collapsed - or have they?
Check out this little tidbit from today's CAAMP stats:
Residential Average Price by Market 2004–2009
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Market |
2004 ... |
Canadian Housing Market is Not the US Market
October 23, 2008 by Shayla Damery
On Wednesday, October 22nd, TD Securities announced that it feels that the Canadian housing market decline may not be as bad as was thought by other institutions. This supports speculation that the Canadian housing market is not going to suffer a meltdown similar to the one seen in the United States.
TD reports that home prices fell only 1.3% in major Canadian cities in September, whereas it was initially reported by the Canadian Real Estate Association (CREA) that prices fell by a whopping 6.2%.
Eric Lascelles, chief economics and rate strategist for TD Securities says that home ...
Read more »Edmonton Housing Market Undervalued
October 22, 2008 by Shayla Damery
The Centre for Urban Economics and Real Estate in the Sauder School of Business of the University of British Columbia recently released a study showing whether home prices in major Canadian centers are under- or over-valued. The cities studied were Calgary, Edmonton, Halifax, Montreal, Ottawa, Regina, Toronto, Vancouver and Winnipeg.
To main motivation behind the study was to see if the Canadian housing market was declining at the same rate as the United States housing market. The study's findings show that despite Canada's more conservative and regulated lending practices, the housing inventory (as a whole) in Canadian cities ...
Read more »Edmonton: Higher Vacancy Rates, but Less Affordable Rent
June 5, 2008 by Shayla Damery
The Canadian Mortgage and Housing Corporation (CMHC) recently released their spring Rental Market Survey comparing the rental market in April 2007 versus April 2008, and the results are fairly interesting. The average apartment rental vacancy rate (taken from Canada's 35 major centres) decreased from 2.8% in 2007 to 2.6% in 2008. That means that it's getting harder to find an apartment to rent throughout Canada as a whole.
In Edmonton, however, we have seen the vacancy rate increase from 1.1% in 2007 to 3.4% in 2008. Although this is good news, average monthly rents ...
Read more »Edmonton Home Prices Stable
April 8, 2008 by Shayla Damery
For the first quarter of 2008, Edmonton home prices have remained fairly stable. According to Marc Perras, the president of the Realtors Association of Edmonton, “now it the time to be buying”, mostly because there is a good selection of homes on the market right now (there were 9,464 listed at the end of March), but also because we saw an interest rate decrease at the beginning of March.
The average price of single family homes increased to $386,632 last month, and the average price of condos decreased by 0.48% to $263,023. The average price of ...
Read more »Trends for Edmonton Housing Starts
February 8, 2008 by Shayla Damery
If you're interested in the Edmonton housing market, and want a quick blurb about what's going on as far as housing starts are concerned, check out the link below. The article outlines the trends in both multi-family and single-family dwellings from last year to this year, as well as a comparison to ten years ago.
Edmonton Housing Starts Buck Trend (as seen in the Edmonton Journal, February 8th, 2008).
Read more »Edmonton Housing Market Stabilizes
November 6, 2007 by Shayla Damery
Edmonton's housing market didn't change drastically through October, but rather remained stable. Inventory dropped slightly throughout the month, with a total of 9,577 residential properties available on the Multiple Listing Service as of October 31st. October started out slow, but sales picked up towards the end of the month.
Single family dwellings sold for an average price of $397,198, just 0.6% lower than September. The average price of condominiums dropped by 2.9% to $262,875 and the average price of duplexes and rowhouses rose by 18.7% to $367,964. Overall, the average price ...
Read more »Calgary Housing Prices Becoming More Affordable
November 20, 2006 by First Foundation
REAL ESTATE REPORTER
The sizzle has gone out of
Price reductions of $40,000 or $50,000 have become common, realtors say, and some top-end buyers have even tried to back out of deals after realizing they may have overpaid by hundreds of thousands of dollars.
It all adds up to a drastic change from this spring, when it was common to get 30 offers for a single property and homes in desirable areas ...
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