Mortgage Blog - Real Estate
Small House, Big Life!
October 4, 2011 by Jennifer Cookson
Perhaps you’ve been considering downsizing due to tight finances or maybe you’re a first time home buyer and you’re struggling to save up enough money to purchase your starter castle.
Rather than being depressed about the prospect of moving to smaller quarters, consider yourself very trendy indeed as you’ll be partaking in the new “Small Living” movement.
The new passion for small housing speaks to the desire to make a smaller footprint no only environmentally, but also financially. A smaller home can mean lower heating and energy costs as well as less time and money spent ...
Read more »September 2011 CAAMP Statistics
September 14, 2011 by Jennifer Cookson
Every month we publish the statistics that the Canadian Association of Accredited Mortgage Professionals (CAAMP) sends us as a service to our readers.
Click here to see the most recent stats regarding the following:
Bank of Canada Interest Rate
Government of Canada Bonds
Bank Prime Lending Rate
Total New Housing Starts
Conventional Mortgage – 5 Year Rate
Average MLS® Resale Price for Local Markets
US Federal Reserve Board Discount Rate
Exchange Rate $CDN($US)
The Quarterly Affordability Housing Index is particularity interesting – it shows that the current average price for a detached bungalow in Edmonton is $324,500, and the income ...
Read more »Video Review - EdmontonRealEstate.Pro MLS Search
August 4, 2011 by Gordon McCallum
One of the best services for Edmonton and area home buyers is a great search tool called EdmontonRealEstate.pro from our friends at Coldwell Banker Johnston.
In terms of ease of use, the filtering options available, quality descriptions and photos, and property-type and location filters, this service is second to none if you’re looking for a home that’s listed on the MLS in metro Edmonton.
Here’s my quick five-minute review of the site including some of my favourite features:
Read more »Break Out the Deck Chairs! Vacation Properties Back in Demand
June 17, 2011 by Jennifer Cookson
According a recent study by Re/Max, the temperature isn’t the only thing heating up this summer. The reality company’s 2011 Recreational Property Report says that the western Canadian vacation property market is also on the rise, fueled in large part by Albertan buyers who are beginning to feel benefits from the improving provincial economy. Historically low mortgage rates and a buyers market are also contributing factors putting the possibility of a second home back within reach for many Albertans.
Close to home, properties on Sylvan Lake are popular with, “oil and gas executives with young families from ...
Read more »The Perks of Using a Real Estate Agent
June 13, 2011 by First Foundation
With the Competition Bureau pushing for a more publicly-accessible Multiple Listings Service (MLS), and for-sale-by-owners sites, such as Property Guys, picking up steam, you may be tempted to forgo the services of a real estate agent and tackle your home sale yourself.
Before you invest the inevitable time and money to this endeavour, however, you may want to reconsider the pros of using a real estate agent.
If you’re a seller…
- With an estimated 85% of homebuyers opting for the services of a real estate agent, a selling agent (and his/her fellow colleagues) have more access to potential ...
Read more »May 2011 Housing Starts Surpass Last Years Numbers
June 12, 2011 by Jennifer Cookson
Housing starts in the Edmonton region for May surpassed May 2010 levels, Canada Mortgage and Housing Corp. said Wednesday.
There were 1,009 homes started in May, up from 989 a year earlier, marking the highest level of monthly activity since April 2010, according to CMHC.
Year to date, however. the housing starts totaled 3,332 which was down from 4,428, this time last year.
There were 546 single-detached homes started in May, up slightly from 540 a year earlier. It’s the first year-over-year gain since September.
For the year to date, builders started 1,783 single-detached units ...
Read more »Set the Stage to Sell Your Home in Half the Time
June 2, 2011 by Jennifer Cookson
Have you ever judged a book by it’s cover or a wine by it’s label? Have you ever landed on a website that looked unattractive and doubted it’s professionalism or quality and immediately returned to your Google search to find something more appealing to deal with?
Well, according to an article in the Edmonton Journal, home buyers are doing the same thing when they search for homes online via the MLS or the For Sale by Owner websites. The article quotes one Realtor as saying, “Buyers are not even going to go to your property to see ...
Read more »New Rules for Home Inspectors in Alberta Will Go Along Way to Protect Home Buyers
May 14, 2011 by Jennifer Cookson
New rules passed by the provincial government will require resale home inspectors to be fully licensed by the province. The Home Inspection Business Regulation also requires licensed inspectors to carry $1 million in errors and omissions insurance and post a $10,000 security to cover consumer losses if they fail to do their jobs. The new rules also ban contracts that limit liability, establishes minimum qualifications and allows for prosecution under the Fair Trading Act, with a maximum fine of $100,000.
Previously, the home inspection industry was totally unregulated in Alberta, leaving consumers vulnerable to minimally trained, under insured ...
Read more »Honest Advice On Picking a Good Realtor
April 14, 2011 by Jennifer Cookson
For National Homeowner Education Week, I thought we’d start with some candid advice about choosing a great Realtor. I’ve bought several houses myself over the years and I have certainly worked with Realtors in a professional capacity for more than seven years. Here’s what I’ve gleaned from my experiences, both good and bad…
1) Experience May Not Be Everything- This one is always up for some debate because sometimes agents new to the industry are eager, attentive and have all the time in the world to spend with you and sometimes a well established Realtor is ...
Read more »Women Are The Fastest Growing Segment of the Real Estate Market
March 7, 2011 by Jennifer Cookson
Happy International Women’s Day!
Did you know that single women are the fastest growing segment of the real estate market making up 25% of home buyers, whereas men make up only about 9%. That means that 1 in four home buyers are single women. Some say women are more conservative than men when buying a house, sometimes intimidated by the idea of renovating or having to maintain a home by themselves. However, we have met many female clients who have not only bought and renovated their own home, but have gone on to become the landlords of multiple rental ...
Read more »CMHC Report Says Edmonton House Prices Going Up in 2012
February 22, 2011 by Jennifer Cookson
According to a report released recently by the Canadian Mortgage and Housing Corporation ( CMHC) , 2012 will bring unprecedented growth in home values for the Capital region after more subdued increases in 2011.
The CMHC’s first-quarter housing market outlook projects the average Multiple Listing Service price in 2011 for the Edmonton area will be $331,500 — an increase of about 0.8 per cent from 2010 when it was $328,803. However, the average house price is expected to rise 2.26 per cent in 2012 to $339,000, according the report.
In 2011, month to month price gains are ...
Read more »Housing Demand and Supply is Stabilizing Says Real Estate Report
December 9, 2010 by Jennifer Cookson
Not a single Canadian city will see house prices fall in 2011, according to a market forecast released by Re/Max.
The residential real estate brokerage said there will be “greater stability” in the market in 2011, with the national average price forecast to rise by 3 per cent to $350,000. It expects sales to stall, however, with about five per cent fewer transactions in 2011.
“Ample inventory levels, steady demand, and moderate growth, both in terms of sales and prices, will characterize the market in 2011,” said Michael Polzler, executive vice-president and regional director of Re/Max Ontario-Atlantic ...
Read more »Get Value for Money from Home Improvements
December 2, 2010 by Brian Simpson
Improving the value of your home doesn’t have to mean spending a lot of money. In fact, some of the most valuable repairs and improvements are those that require the smallest investments of time and money.
If you really want to get the most out of every dollar, the way to get value is by taking a moment to really consider what your home needs, what you want, and why you want it.
The first question you need to ask yourself is: do you want to improve value for yourself, or for resell value?
If you plan on retiring ...
Read more »Royal LePage Survey Says Canadian Housing Market Healthy
October 20, 2010 by Jennifer Cookson
As current home values plummet in the US due to the recent flood of foreclosures, the Canadian market is actually experiencing growth at what is being called a “healthy” rate.
According to the Royal LePage House Price Survey, our country’s housing market appears to be in “correction” mode. Phil Soper, the company’s president and chief executive was quoted on Canoe’s Money site as saying,” During the period which stretched from 2007 through early 2010, the Canadian housing market was characterized by often wild swings in housing activity. We believe much of that volatility has been worked out ...
Read more »Landmark Agreement Changes Face of Realty Industry in Canada
September 30, 2010 by Jennifer Cookson
More than four years of feuding between the Competition Bureau and the Canadian Real Estate Association has resulted in an agreement that will have a major impact on the realty industry as well as Canadian homeowners.
This past February, the Bureau formally challenged CREA‘s practices, claiming they ” limit consumer choice” and prevent real estate agents from offering lower cost services to their clients.
CREA‘s main advantage over private sale companies or the average homeowner wishing to sell a home privately is the Multiple Listing Service ( MLS), which is actually owned by CREA and responsible for 90% of home ...
Read more »Straw Buyers and Mortgage Fraud
August 12, 2010 by Jennifer Cookson
Last week a mortgage fraud scheme was uncovered by the police, allegedly worth $12 million and involved 22 homes right across Calgary and eight banks.
The scheme allegedly involved convincing younger, most likely first time buyers to obtain mortgage in their name in exchange for $3000 to $5000. These people were told that in 6 months, the mortgages would be taken over by the masterminds of the scheme and that they could walk away from the loan. Instead, the alleged fraudsters disappeared with the mortgage funds, and left the paying of the mortgage to the “straw buyers”.
“Straw buyer” is ...
Read more »Edmonton Leads the Way in New Home Starts
August 11, 2010 by Jennifer Cookson
Canada’s overall annual rate of housing starts dropped by 1.6% according to numbers released by CMHC on Tuesday. New home starts were reported to be at 192,300 in June and fell back to 189,200 for July.
However, according to and article in today’s Edmonton Journal, Alberta’s new home starts have actually increased, with Edmonton leading the pack among Alberta’s major centers. In July, builders in the region have begun construction on 6,235 single and multifamily homes which is up significantly from the 2,363 starts in July, 2009. The article does note ...
Read more »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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