RSS

This is the question that I get most asked: Should I go with a fixed or variable mortgage?

In the past, when the spread between the variable and fixed rates were way farther apart, it was an easy answer, as long as the client didn’t mind their monthly payments fluctuating. I would always answer: Go with the variable.

This was because, historically, the variable has saved homeowners money more than 85% of the time. However, times have changed and the spread between the variable and fixed rates has become a lot closer, since banks are not discounting the variable rates as much,  the best variable now is prime – 0.35%, that equates to 2.65%. The best fixed rate right now for a five year term is 3.29%. The spreads have come closer primarily because banks are losing money on the variable side and are trying to direct borrowers to the fixed side with lower spreads.

So back to the question: Should I go with the variable or fixed mortgage?

With the fixed rate mortgage, homeowners lock in their mortgage for a period of time, the most popular being the five year fixed-rate mortgage. Since rates can arguably only go up from the rates we are at, it seems like a logical decision to go with a fixed mortgage.

The difference between today’s variable rate, which is 2.65% and the four year fixed, 2.99%, is a difference of 34 basis points or just over one rate hike.

This is a small difference to have the security knowing that you won’t have to pay more if rates were to rise.

Moshe Milevsky, professor at York University and an author of mortgage studies says that the savings that one may get from variable rates in the future will be a lot lower then what was once enjoyed.

However, a person’s circumstances should dictate if they should go with a fixed or variable mortgage. If a person can take on the fluctuation of monthly payments, then the variable is ok for them.

One must remember that a mortgage is only one piece of a person’s total financial plan.

However, if you are still struggling to decide which mortgage is right for you, these are the top considerations to think about:

1.     Your Financials

Since variable – rate mortgages take on more risk, a person needs to know whether they are able to take on a fluctuating variable – rate mortgage. A person’s income should be stable, their debt should be low, a person’s sensitivity to risk should be low, and any assets a person has, are able to be turned into cash if cash flow tightens.

2.     Spreads

This is the difference between the variable – rate mortgage and the fixed rate mortgage. When this difference tightens, the variable losses some advantage. When the spread is less than one percentage point and the economy is at the bottom of an economic cycle, like we are now, the fixed has a higher probability of outperforming. Today’s spread between a five year fixed and a variable mortgage is half a percentage point. Based on this, a fixed is likely to outperform.

3.     Breaking Your Mortgage Early

One bank study pegged the duration of a five year mortgage is 3.3 years. This is because people break their five year mortgage early to refinance, sell, divorce, or just change to a mortgage with a better rate. Penalties on variables tend to be less, only three months interest, compared to breaking a fixed rate mortgage. Penalties for breaking the fixed rate can be a lot more expensive because of lenders interest rate differential penalties. If there is a chance you will break your mortgage, a variable may cost you less.

4.     Flexibility

Variables give you the option of changing your mind and locking into a fixed rate option. However, a lender’s rate to convert is about a fifth to a half a percentage point above its best fixed rate.

5.     Alternatives

The five year fixed and the variable mortgages are not the only options; look at shorter fixed terms. Today, you can find a two year fixed rate at 2.49%, where most variables are at 2.7% - 2.90%. You can diversify risk by using a hybrid mortgage. This is part fixed and part variable.

6.     Knowing Your Rate

There is comfort to know what your monthly payments will be from month to month. Variable rate borrowers don’t have this comfort and may have to tolerate some anxiety if rates start to rise.

Read

 
First year-over-year increase in monthly condominium sales since April 2010

 

Calgary, July 4, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), residential sales surged in the month of June 2011 to 1,979 units. While this indicates a third more sales than June 2010, the year-todate increase proved a moderate 2 per cent. Strong monthly increases does not imply a housing boom, as it is important to put into perspective that sales

activity remains below long term averages. While the single family market has shown signs of improvement throughout the first half of this year, this is the first time since April 2010 that condominium sales have recorded a year-over year increase.

 

“Improved housing demand is being fueled by a younger demographic and, with the affordability of homes in Calgary, we are continuing to see young Calgarians pursue ownership over rentals,” says Sano Stante, president of CREB®.

 

“Historically, Calgary’s average family income has been higher than the national average and a younger more mobile demographic has been attracted to good paying professional jobs in Calgary. As the economy continues to build momentum, we expect this same trend will support a balanced and healthy

housing market in the second half of 2011 and into 2012.”

 

With 581 sales for the month of June 2011, the condominium market improved by 31 per cent over June of 2010, however year-to-date figures show a 5 per cent decrease over the same period last year.

 

“Condo sales bounced back this month, and we now have less than four months of supply on the market. Stronger condo sales, combined with a decline in inventory, will lend more balance to this market in the months to come,” says Stante.

 

After the first half of the year, average prices of condominiums are still slightly lower than levels recorded last year, as more buyers bought condominiums under $200,000 in 2011 compared to 2010 for the same period.
 

“Buyers in this market expect value and many are taking advantage of some affordable buys in both the single family and condo markets. It highlights using a skilled REALTOR® to properly price your home for your unique market area,” says Stante.

 

The single family market recorded 1,398 sales in the month of June 2011. This is an increase of 32 per cent when compared to June 2010 when 1,059 single family homes sold in the city of Calgary. With a total of 7,231 sales after the first half of the year, year-to-date single family sales are 6 per cent higher than last year.

 

“While new listings are still lower than levels recorded last year, the rate of decline has eased. With the market shifting to more balanced conditions in recent months, sellers are feeling more confident to list their home. Overall our absorption rate has remained relatively stable, staving off any significant rise in

prices,” says Stante.

 

Year-to-date average price of a single family home in Calgary is $472,330, while the median price is $410,000, virtually unchanged over levels recorded in the previous year. The distribution of sales by price range has not shown any significant shift compared to last year, pointing to continued stability in the market.
 

“After the first half of the year, it appears the recovery in the housing market is starting to find its footing.

This gradual leveling has been fueled by growth in employment, and in particular growth in full time jobs. Improved job prospects, combined with an increase in the number of people moving to Calgary, will give lift to our housing market for the remainder of this year and into the

next,” says Stante.

 

Read

Higher priced homes selling faster as listings trend down
 

According to figures released today by CREB® (Calgary Real Estate Board), City of Calgary year-to-date sales declined by 4 per cent compared to the first four months of 2010. The decline was offset by a 14 per cent drop in listings recorded over the same period, resulting in lower inventory levels, and a moderate growth in average prices.

 

In April 2011, single family home sales were 1,217, while 2,299 listings came to market, a decline of 10 per cent over April 2010 and 25 per cent, respectively. Inventory levels rose slightly over March 2011

levels, but remained well below inventories recorded in April 2010, and close to the long term average, indicating the market continues to show balanced conditions.
 
“While our spring market has been a little slow to get started, we are seeing our inventory levels return to healthy levels,” says Sano Stante, president of CREB®. “This trend, combined with an improving job market, will help warm up Calgary’s housing market in the coming months.”
 
Along with a decline in inventory, Stante points out that homes in the higher-end of the market are selling faster, with average days on market trending down, and below the 5-year average.
 
“We are seeing improvements in the sale of homes in the higher price points. Homes above $700,000 are selling within an average of 41 days. This is consistent with pre-recession levels,” says Stante.
 
To view the full report and current Calgary market stats, click here.
Read

Calgary, February 1, 2011
 

– Single family home sales in the City of Calgary edged upwards month-over-month and showed the first yearover-year increase since April  2010, according to figures released today by CREB® (Calgary Real Estate Board).

 

The number of single family home sales in the month of January 2011 were 787, compared with December 2010, when sales were 734— an increase of about 7 per cent. The number of condominium sales for the month of January 2011 was 297. This was down from the 320 condominium transactions recorded in December 2010.
 
Year-over-year, the number of single family homes sold in January 2011 in the city of Calgary increased by just over 3 per cent. In January 2010, single family home sales totaled 762. Condominium sales saw a decrease of 21 per cent from the same time a year ago. In January 2010, condominium sales were 376.
 
“More affordable housing will continue to attract homebuyers to the inner-city, particularly as employment in the city of Calgary continues to improve,” says Sano Stante, president of CREB®. “Single family homes in the city are currently driving this gradual recovery, and we are seeing an uptick in the sale of homes below the $350,000 price point. This may suggest more first time homebuyers are entering the market, providing the fuel needed for a sustained housing recovery.”
 
The average price of a single family home in the city of Calgary in January 2011 was $454,287, showing a 3 per cent increase from December 2010, when the average price was $441,341, and a 3 per cent increase from January 2010, when the average price was $441,217. The average price of a condominium in the city of Calgary in January 2011 was $287,954, showing a 2 per cent increase from December 2010, when the average price was $282,768 and a 2 per cent increase over last year, when the average price was $282,639.
 
The median price of a single family home in the city of Calgary for January 2011 was $390,000, showing a slight increase from December 2010 when the median price was $389,000. This was a 2 per cent decrease from January 2010, when the median price was $398,000.
 
The median price of a condominium in January 2011 was $255,000, showing a 1 per cent decrease from December 2010, when the median price was $258,500, and a 4 per cent decrease from January 2010, when it was $265,000.
 
“The recovery in 2011 will be incremental and gradual. Nonetheless, at the moment Calgary is offering buyers a great deal of affordability, low interest rates and a large selection of inventory,” says Stante. “Overall the first quarter of 2011 will show modest improvements in sales which will lay the foundation for the return to a more balanced market,” he adds.
 

Single family listings in the city of Calgary added for the month of January 2011 totaled 1958, an increase of 169 per cent from December 2010 when 728 new listings were added, and showing an increase of 7 per cent from January 2010, when 1822 new listings came to the market.

Read

Well, we finally have some details and insight for the 2011 housing market, and it's about to get tougher for new home owners, and even those currently in the market.

There have been significant announcements this week for everyone interesting in buying or selling a home.  Timing is everything, and it appears that once again, there will be some significant changes that you need to be aware of. 

Considering the forecast for the Calgary Housing market to start increasing in pricing, and the tighter mortgage rules that will be coming into force in 60 days, now might be a vital window for home owners that are currently considering a move.

It is especially urgent for homeowners who are currently wishing to sell their current homes and lock in a new mortgage rate on a newly purchased home.  With only 60 days to finalize before the new rates come into effect, it will be a challenge to get a home on the market and sold in time to take advantage of the current status.  The up side is that over the next two months, the market may get very fluid with those who need to take advantage of the current mortgage rules.

I received the following details from one of my mortgage specialists advising that there will be some major changes in how mortgages are approved. This is a significant tightening for those of you who are currently considering purchasing a new home.

1.       No more 35 year amortizations

 

As of March 18, 2011 all insured deals will be allowed a 30 year amortization. Any fully signed contracts whether it be a purchase or refinance committed to by CMHC on or before March 18 will be honoured over 35 years.  You cannot have an increase in price after this date - if you do, you will be subject to the 30 year amortization.

2.       Refinancing has been scaled back to 85%.

 

As of March 18th,  home owners will have access to 85% of the value of a home instead of the current 90%. This will affect  you as a  home buyer when you take equity out of your home for a down payment.  In this case, you won’t be able to get as much funding up front and your monthly  payments will be higher.

Current and potential buyers please note that the magic date is March 18th, 2011.

On a $450,000 purchase with 5% down, this would save you $200.00 per month in mortgage payments and your affordability increases by 3%.

For those who are considering a home purchase requiring an insured mortgage (less than 20% down payment), you will want to complete pre-approval and possession of home prior to March 18 2011.

If you are currently sitting on the fence as to whether or not to make your move it is important to understand that buying today will save you money in the long run. After March 18th, this window will be closed.

If you are currently considering a home purchase and would like to speak to a mortgage specialist, I have excellent resources who are very talented in obtaining financing.  Please feel free to call me at 403-399-0809 and I will put you in touch with someone who can assist you according to your current circumstances.

For further information on these changes, and the background associated, here are a few links you can visit:

The Harper Government Takes Prudent Action to Support the Long-Term Stability of Canada’s Housing Market

Backgrounder: Supporting the long-term stability of Canada’s housing market

CALGARY HERALD ARTICLE: FeDERAL GOVERNMENT TIGHTENS MORTGAGE RULES AGAIN

Read

The Calgary Real Estate Board released is annual forecast on Tuesday, advising that there will be a recovery in the market this year with improved sales compared with 2010.

The board is predicting that Calgary's housing inventory levels are expected to stabilize, which will result in a return to a more balanced and sustainable housing market.

It forecasts single-family home sales to increase by 19.9 per cent this year to 14,500 transactions  and the average MLS sale price is predicted to rise 4.1 per cent to $480,000.

The board also predicted that condominium sales will rise by 15.8 per cent to 6000 transactions with the average sale price increasing by 1.8 per cent to $295,900.

In the towns outside of Calgary market, the board is forecasting a 13.5 per cent increase to 4,000 with the average price increasing by 2.6 per cent to $368,500.

Sano Stante, president of the real estate board, said that his forecast wouldn't change in light of the federal government's announcement to toughen up mortgage lending practices.

"We are expecting in-migration into Calgary.  If we see the job growth that we expect to happen in Calgary then the in-migration should drive the sales."

The boards report states that the key to market recovery in 2011 will be permanent job creation sufficient to stimulate in-migration. Recovery in the first half of the year will be more modest, picking up pace in the second half. Recovery of sales will be from single family homes close to the downtown core, and by condos and single family homes in the outlying areas.

" 2011 will offer buyers unprecedented affordability, low interest rates and a large selection of inventory."

The CMHC, is predicting increased sales, with residential properties in the sold in the Calgary area to increase by 2.0 per cent this year to 20,700 units, with an increase in the average sale price.

Read

Housing sales in December declined from November, and the median house price has dropped 3% in comparison to 2009. Following are excerpts from the most current news release from the Calgary Real Estate Board.
 
Home and condo sales in Calgary and area remained relatively unchanged in December 2010, indicating that a full-fledged recovery in the housing market has yet to take hold, according to
fi gures released today by the Calgary Real Estate Board (CREB®).
 

 

The number of single family home sales in the month of December 2010 were 734, compared with

November 2010, when sales were 891—a decline of about 18 per cent. The number of condominium sales for the month of December 2010 was 320. This was up from the 310 condominium transactions recorded in November 2010.

 
Undoubtedly housing markets in Alberta and Calgary underperformed in 2010, as sales recoveries did not materialize as forecasted. In many ways, re-sales in 2010 showed a repeat of 2008, with a short lived resurgence in the  fi rst few months, when confi dence returned to the market,” says Diane Scott, president of CREB®.
 

 

“Employment and net-migration have been slower to pick up here in Calgary—and these are key drivers of our housing market. The good news is we arenow seeing marked improvements in investment and employment in the energy sector. We believe these green shoots in our economy, supported by improved affordability and low interest rates, will eventually translate into a gradual recovery of our housing market as we move into 2011,” adds Scott.

 

“Supply outstripped demand in the second half of 2010, establishing conditions for a buyers’ market. Overall we did see significant improvements in affordability in the Calgary market in 2010—and I think the message to prospective buyers is that this is a great time to buy if you’re looking for good selection, specific locations and price points. The median price did indeed decline in 2010, signaling a year-over-year price correction of about 2 per cent for single-family homes, just over 4 per cent for condos and 6 per cent for the outlying towns,” adds Scott.

 

Single family listings in the city of Calgary added for the month of December 2010 totaled 744, a decrease of 44 per cent from November 2010 when 1,318 new listings were added, and showing a decrease of 8 per cent from December 2009, when 806 new listings came to the market.

Condominium new listings in the city of Calgary added for December 2010 were 369, down 42 per cent from November 2010, when the MLS® saw 632 condo listings coming to the market. This is a decrease of 17 per cent from December 2009, when new condominium listings added were 444.
 
To read the entire report and see the latest statistics, visit http://www.creb.com/public/documents/statistics/2010/package/res-stats-2010%20December.pdf
Read

It was disappointing to see prices and home sales slide again last month after a slight increase in September.  Home sales in the city of Calgary were down month-over-month in October 2010. The number of single family homes sold in October dropped 7% from September.

Buyers are still remaining cautious, keeping the market soft.  The year over year sales continued to decline in October. 

The average prices of single family homes in the city of Calgary in October 2010 decreased 3% from September 2010, when the average price was $460,278, and a 4 per cent decrease from October 2009, when the average price was $462,465.

The fact remains that the market is still soft and sellers need to be cognizant of this as it affects what they can reasonably expect to list their homes for if deciding to sell.  

On the up side, there were 22% fewer listings of homes in October than September, lowering inventory (number of homes available for sale) which in the long run will help to balance the market.

These stats were released on November 1st by the Calgary Real Board (CREB ®).

Read

Hello everyone!

Market Update!  A bit of good news!!

For the first time in many months there appears to be a turnaround in the Calgary Housing Market!  The Calgary Real Estate Board just released the stats for September and while the changes are modest, it is the first uptick in the Calgary market since April.

In short, the number of houses available for sale in the Calgary market has fallen, but the number of sales of homes has increased for the first time in six months.  Along with the increase in the number of homes sold a significant indicator of possible change is that the average median price of homes sold from August to September increased by almost $15,000.00.  If you would like to see the actual stats feel free to send me an email requesting a copy of the CREB Stats and I’ll forward the information to you in an email attachment.

In the homes I have had listed, I have noted and increased number of showings over the last few weeks as well.  While all these indicators are modest, it is certainly a refreshing change from the six months of steady downturn we have been experiencing, and appears to show that the real estate market is beginning to come to life again.

iPhone/Android App Update

I appreciate everyone who has downloaded my iPhone App to search the Calgary MLS system.  It has become quite a popular application.  Don’t be afraid to explore everything it has to offer, and if you have any questions or requests about a property, you can click on the links provided in the listings on the app to notify me and I will be happy to get back to you right away.  Keep in mind that if you sign into the VOW on HouseHuntingAdventures.com it opens up a special account for you where you can save all your home searches for comparables and once set up, you can do the same from your iPhone or Android as well.   If you have any questions, just call!

New to Canada?

I have many clients who are new to Canada who I have guided in their real estate adventures and I understand much of what it is like when coming into a new country.  I experienced coming to Canada, not knowing the languages here, first moving to Quebec and learning the French language, then to Calgary and learning English (Czech is my home language).  The challenges were difficult, but also a great character builder for me, especially while raising three children on my own.  I truly understand all the frustration with moving and setting down roots.  My desire is to help anyone who is a client of mine to make their transition as easy and cost manageable as possible.

 Keep it Drama Free!

I can really empathize with anyone when it comes to moving and all the related stresses and headaches. I’ve been there and done that on my own with my children, many times.  Every move made me a little wiser and I became an organizational wizard!  I understand all about moving a family, and the financial stresses and strains that can ensue.

Through my personal experiences as well as my experience as a REALTOR©, I have compiled a wonderful list of resources;  from excellent mortgage brokers who are very talented at locating great mortgage rates and helping you to qualify, to home inspectors  capable ensuring nothing is missed when you are looking to purchase a new home.

Please let me know if I can be of service to you.  Even if you are just at the research stage in locating a new home, or you simply would like to have a current market evaluation done on your home to determine what your next step should be, I’m here for you.  Please don’t hesitate to call me at any time. 

My personal cell phone number is 403-399-0809, or if you prefer, my personal Email of Natasha@HouseHuntingAdventures.com.

Wishing you a wonderful Thanksgiving!

 

Natasha

Read

By Mario Toneguzzi, Calgary Herald August 25, 2010

 

A high inventory of homes for sale combined with a softening demand from potential homebuyers is starting to put downward pressure on Calgary MLS prices.
 
Preliminary and unofficial data for August month-to-date indicates prices are dropping from levels of the past few months in both the single-family and condominium market.
 
"We have almost the same number of buyers that we had in December but we have so many more listings," said Gary MacLean, a realtor with Re/Max Real Estate Central. "It's like having a Safeway that got two times as big but only has the same number of customers coming in the door and in order to get rid of the inventory they have to reduce the prices.
 
"It's a supply and demand issue. There's an oversupply of houses not only here but all across Canada and the number of buyers are decreasing."
 
For example, at the end of December one of every 1.6 houses listed for sale were selling. In July, that ratio jumped to one for every 6.6 listings. The month-end inventory of properties for sale in Calgary metro at the end of December was 3,258. It was 7,982 at the end of July.
 
MacLean said the inventory is starting to shrink but it's not as a result of increasing sales. Many people have simply taken their homes off the market.
 
According to preliminary, unofficial data on the website of realtor Mike Fotiou, of First Place Realty, there have been 661 single-family home MLS sales in Calgary for an average price of $441,469 month-to-date until Tuesday.
 
In July for the entire month, there were 915 sales for an average of $464,655 and in August 2009 there were 1,277 sales for an average of $454,130.
 

The average MLS sale price peaked this year in May at $483,240.

The condominium market is showing a similar story with sales so far this month at 271 for an average price of $283,485. In July, there were 396 condo transactions averaging $291,168 and in August 2009 there were 632 sales for an average price of $283,330.
 

The average MLS sale price for a condo peaked this year in May as well at $304,662.

Diane Scott, president of the Calgary Real Estate Board, said supply and demand is playing a role on current average prices but there's also the factor of luxury home sales.

"Homes sold over $1 million are down in numbers from last year for the same period," she said. "June to August last year we had 98 sales over $1 million. This year we've had 87 ... That will drive the average price down as well for sure."
 

On Wednesday, the Teranet-National Bank Composite House Price Index showed Calgary was lagging behind other major Canadian centres in the rate of change for home prices.

The index is estimated by tracking observed or registered home prices over time using data collected from public land registries and all dwellings that have been sold at least twice are considered in the calculation of the index.
 
The report said in June Calgary prices rose by 0.2 per cent on a monthly basis behind Ottawa (2.7 per cent), Toronto (2.4 per cent), Montreal (1.4 per cent), Halifax (1.3 per cent) and Vancouver (0.8 per cent). The national average was 1.5 per cent, the 14th consecutive month of increases.
 
On a year-over-year basis, the national average was 13.6 per cent growth led by Vancouver at 16.3 per cent and followed by Toronto (16.2 per cent), Ottawa (12.0 per cent), Montreal (8.7 per cent), Calgary (8.3 per cent) and Halifax (7.1 per cent).
 

mtoneguzzi@theherald.canwest.com



Read more: http://www.calgaryherald.com/business/real-estate/High+inventory+cooling+sales+pressure+house+prices/3440610/story.html#ixzz0yyLPwgI0
Read

Now might just be the best time to lock into a fixed-rate mortgage, especially for those homeowners on a tight budget, according to an expert broker.
 
The Bank of Canada hiked its overnight lending rate by 25 basis points Wednesday, and variable mortgage rate products offered through major lenders are expected to rise in step.
 
Despite Wednesday’s increase, variable rates -- hovering between 2.05% and 2.25% these days -- still offer savings compared to fixed-rate plans in the near term.
 
But there is an argument for locking into a fixed rate sooner rather than later, said Gary Siegle, a Calgary-based regional manager at Invis.
 
The rate for the popular five-year fixed mortgage has recently dropped to a commonly available 3.89% and is as low as 3.6% in some cases.
 
We haven’t seen rates this low in recent memory, Siegle said.
 
“There are lots of people out there who are saying: Why would you overlook the fact that we haven’t seen five-year rates this low in a long, long time?
 

“Why would you not take advantage of historic low interest rates?”

Unfortunately, the answer isn’t clear-cut, Siegle said.
 
Some people are choosing to overlook low fixed rates because the variable options are still cheaper and may be for some time.
 

However, mortgage holders do need to consider that variable rates do change eventually.

“And the direction everyone is predicting that they’ll go is up. It’s a question of how much and when,” Siegle said.
 

Floating rates have historically been the cheaper option over the entire life of a mortgage but not everyone can stomach the often dramatic swings in monthly expenses.

“It’s a question also of psyche,” Siegle said.
 
People who are generally nervous or who are on a tight budget might be better off locking in now, he said.
 

“Even though they are giving up that 1.25%, they are gaining a lot of peace of mind.”

Homeowners considering the switch to a fixed plan could look into whether there is penalty for switching mid-term, Siegle said.
 
Either way, both variable and fixed-rate mortgage holders can take advantage of current borrowing prices by paying down as much of the principal amount as quickly as possible. That way, as rates go up, total debt burden will be lowered come renewal time.
 

Whereas the central bank influences variable rates, the bond market influences fixed-rate mortgages.

The slower-than-expected economy has fuelled investor interest in the bond rally, pushing yields down and allowing banks to offer attractive fixed-rate products.

Read

Calgary Market Update for September 1, 2010
- courtesy of the Calgary Real Estate Board
 
Home sales in the city of Calgary continued to trend lower in the month of August, according to figures released today by the Calgary Real Estate Board (CREB®).

 

The number of single family homes sold in August 2010 in the city of Calgary was down 32 per cent from the same time a year ago, and condominium sales saw a decrease of 42 per cent from the same time a year ago.

 

August 2010 saw 867 single family homes sold in the city of Calgary. This is a decrease of 5 per cent

from 915 sales in July 2010. In August 2009, single family home sales totalled 1,277. The number of

condominium sales for the month of August 2010 was 364. This was a decrease of 8 per cent from the 396 condominium transactions recorded in July 2010.
 
In August 2009, condominium sales were 632. “Calgary’s housing market has been undergoing a
measured correction over the past 4 to 5 months. Sales are trending lower as a result of a increase in first time home buyers entering the market and a decline in pent up demand following a strong post-recession recovery,” says Diane Scott, president of CREB®.
 

“There has been much talk recently about the potential for a housing bubble in Canada--but the economic fundamentals at play make this scenario unlikely for Calgary. What we are seeing is an adjustment to higher levels of inventory and a shift to a buyer’s market.”

 

“A slower than anticipated pace of mortgage rate hikes and continued improvements in  employment are more likely to bring stability rather than volatility into Calgary’s housing market as we move into 2011, ” adds Scott.
 
The average price of a single family home in the city of Calgary in August 2010 was $445,617, showing a 4 per cent decrease from July 2010, when the average price was $464,655, and a decrease of 2 per cent from August 2009, when the average price was $454,130.
 

The average price of a condominium in the city of Calgary in August 2010 was $286,384, showing a 2 per cent decrease from July 2010, when the average price was $291,168 and a 1 per cent increase over last year, when the average price was $283,330. 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.

 
“We expect a period of correction will continue into the fall of this year. Prices may sag in the short-term and level off as we move into 2011,” says Scott. “Homebuyers and sellers should keep in mind that market trends are unique even throughout the wider Calgary region.
 
A case in point is the relative strength of Calgary’s town and country market, where sales have remained at 2009 levels. Homebuyers and sellers should speak to a REALTOR® to better understand the opportunities in our current market,” says Scott.

 

The median price of a single family home in the city of Calgary for August 2010 was $395,000, showing a 1 per cent decrease from July 2010 and August 2009, when the median price was $400,000. The median price of a condominium in August 2010 was $260,000, showing a 3 per cent decrease from July 2010, when the median price was $268,000, and no change from

August 2009, when it was the same – $260,000.
 

All city of Calgary 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.

 

Single family listings in the city of Calgary added for the month of August 2010 totalled 1,960, an increase of less than 1 per cent from July 2010 when 1,942 new listings were added, and showing an increase of 3 per cent from August 2009, when 1,910 new listings came to the market.
 

Condominium new listings in the city of Calgary added for August 2010 were 808, down 9 per cent

from July 2010, when the MLS® saw 890 condo listings coming to the market. This is a decrease of 3 per cent from August 2009, when new condominium listings added were 832.
 

“Total month end inventory for the wider Calgary region is down marginally when compared to July—a trend we expect will continue in the coming months.

 

New listings are also likely to recede in the coming months in response to slowing sales,” adds Scott.

Read

OTTAWA – November 16, 2009 – Monthly MLS® home sales activity continues to run strong, with new monthly records set in July, September, and October. This has prompted The Canadian Real Estate Association to revise its MLS® home sales forecast for 2009 and 2010.
 
CREA now forecasts national activity will reach 460,200 units in 2009, up 6.6 per cent from last year. CREA’s previous forecast issued in August had annual sales this year about even with 2008 levels. The new sales forecast for 2009 puts activity about on par with annual activity in 2004, but below levels reported for the years 2005 through 2007.
 
British Columbia and Ontario are still forecast to post annual increases in activity this year, but the forecast has been lifted as a result of recent record level activity in both provinces. In addition, Alberta, Saskatchewan, Quebec, and Prince Edward Island are also now forecast to post an annual increase in activity in 2009. Forecast declines in annual activity have been trimmed for Manitoba and Nova Scotia, and are little changed for New Brunswick and Newfoundland and Labrador.
 
National MLS® home sales activity is forecast to rise seven per cent to 492,300 units in 2010. This is a slightly larger rise in activity than previously forecast. This would make 2010 the second highest year on record for sales, putting activity below the peak reached in 2007, and slightly above the 2005 and 2006 figures. New annual records are forecast for Manitoba and Quebec in 2010.
 
The forecast increase in activity for 2010 reflects significant weakness in activity recorded in the first quarter of 2009. Monthly activity in 2010 is expected to trend downward from recent heights, but the sharp drop inactivity recorded in the in the first quarter of 2009 is not expected to repeat in 2010.
 
New listings began declining in the third quarter of 2008, as many sellers took their home off the market pending an improvement in housing market conditions. CREA’s previous forecast suggested that average price increases in the second half of 2009 would likely result in mild a rebound in listings. In the third quarter of 2009, the number of new listings did post the first quarterly increase in more than a year, which coincided with the return of strong average price increases. New residential listings are expected to continue trending upward.
 

The national MLS® average home price is forecast to climb 4.2 per cent in 2009, reaching a record $317,900. This is an upward revision from the 1.5 per cent gain in CREA’s previous forecast, and reflects the high degree to which the national average price was skewed downward last year by a significant decline in activity in Canada’s priciest markets, and then upward by the rebound in activity.

Alberta remains the only province with a forecast decline in average price in 2009 (-3.0 per cent).
 
Average prices are forecast to rise in all other provinces, with gains ranging from a low of 1.5 per cent in British Columbia to 13.1 per cent in Newfoundland and Labrador.
 
Average prices are forecast to climb a further 4.7 per cent in 2010. Much of the annual increase reflects weakness in the average price in first quarter of 2009, which is not expected to repeat in 2010. Average sale prices are forecast to rise in every province in 2010.
 
The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average price is forecast to climb 2.9 per cent in 2009, with a further 4.0 per cent rise in 2010. CREA previously forecast that the weighted national average price for MLS® homes sales would hold steady from 2009 to 2010.
 
“Pent-up demand built in late 2008 and early 2009, as many buyers moved to the sidelines pending an improved economic outlook,” said CREA President Dale Ripplinger. “With the economic outlook having improved since then, the release of that pent-up demand will boost activity over the rest of the year and in 2010.”
 
“Significant weakness in activity and average prices seen in late 2008 and earlier this year is not expected to repeat in 2010, so 2010 will look a lot better by comparison,” said CREA Chief Economist Gregory Klump. “The raised outlook for MLS® sales activity in 2010 still puts annual activity below the pre-recession peak recorded for 2007.”
 
For the complete release:
 

http://www.crea.ca/public/news_stats/pdfs/mlsForecast_nov09.pdf

Read
Categories:   | Abbeydale, Calgary Real Estate | Airdrie, Airdrie Real Estate | Alberta Housing Market | alberta housing market forecast 2012 | Alberta Housing Market, housing projections, cmhc | Alberta Housing Market, housing projections, cmhc, Calgary housing market, chestermere homes for sale | Alberta Land Tax | Android | April Market Update | April Market Updates for Calgary | Arbour Lake, Calgary Real Estate | Bowness, Calgary Real Estate | Braeside, Calgary Real Estate | Bragg Creek, Bragg Creek Real Estate | Bridlewood, Calgary Real Estate | Calgary cash incentives | Calgary Economic Recovery | calgary economy | Calgary Economy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Econonomy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Grants | Calgary home market | Calgary Home Prices | Calgary home sales | Calgary Homes For Sale | Calgary Housing | Calgary Housing Market | Calgary Housing Market Outlook 2012 | calgary housing market statistics | Calgary Housing Market Update | Calgary Housing Stats | Calgary Housing Trend | Calgary Market Forecast | Calgary Market Outlook 2012 | Calgary Market Update | Calgary Open House | Calgary Properties | Calgary Real Estate | Calgary Real Estate Forecast | Calgary Real Estate Market | Calgary Real Estate Stats | Calgary Relocation | Canada Housing Market | Canada Mortgage Update | Cardston, Cardston Real Estate | Carstairs, Carstairs Real Estate | Chaparral, Calgary Real Estate | Chestermere | Chestermere home for sale | Chestermere Homes | Chestermere Housing Market | Chestermere Open House | Chestermere Real Estate | Chestermere Real Estate Stats | Chestermere Realtor | Chestermere, Chestermere Real Estate | Citadel, Calgary Real Estate | Cityscape, Calgary Real Estate | CMA, Market Analysis, Selling Price, Fair Market Value, Home Value, home price | CMHC | Connaught | Connaught, Calgary Real Estate | Country Hills | Country Hills, Calgary Real Estate | Coventry Hills, Calgary Real Estate | Dalhousie, Calgary Real Estate | Deer Ridge, Calgary Real Estate | Deer Run, Calgary Real Estate | Dover, Calgary Real Estate | economic recovery | Economy | Evanston, Calgary Real Estate | Executive Home for Sale | Falconridge, Calgary Real Estate | Finance | First Time Home Buyers | foreclosure | Garrison Green | Garrison Green, Calgary Real Estate | Harvest Hills, Calgary Real Estate | Hawkwood, Calgary Real Estate | Hillhurst, Calgary Real Estate | Housing Trends | Inglewood, Calgary Real Estate | IPhone | January 2013 Market Update | Lake Bonavista, Calgary Real Estate | Lakeside Home For Sale | Langdon | Langdon, Langdon Real Estate | Lyalta, Lyalta Real Estate | Mahogany, Calgary Real Estate | Market Trends | Market Update | Market Value | Marlborough Park, Calgary Real Estate | Martindale, Calgary Real Estate | Mayland Heights, Calgary Real Estate | McKenzie Towne, Calgary Real Estate | MLS QR Code | MLS Search | MLS Search, Personal Real Estate Office, Real Estate, home search, compare homes, search for homes | Monterey Park, Calgary Real Estate | Mortgage | Mortgage Fraud | Mortgage Rates | Mortgage Registration | Mortgages | New Listing | Okotoks, Foothills Real Estate | Okotoks, Okotoks Real Estate | Open House | Pineridge, Calgary Real Estate | Pricing Your Home For Sale | QR Code | Real Estate | Real Estate App | Real Estate Forecast | Real Estate GPS QR Code | Real Estate Integrity | Real Estate QR Code | Real Estate, Chestermere Real Estate, Calgary, Buy, Sell, home | Recession | Redcarpet_Mountview, Calgary Real Estate | Rent vs Buy | Rental Property | Rental Property, Calgary Rental, First Time Home Buyers | Rosscarrock | Rosscarrock, Calgary Real Estate | Rural Rocky View MD, Rural Rocky View County Real Estate | Rural Rocky View MD, Rural Rocky View MD Real Estate | Rural Rocky View MD, Rural Rockyview County Real Estate | Rural Wheatland County, Rural Wheatland County Real Estate | Sage Hill, Calgary Real Estate | Secondary Suite | Sell Your Home | Selling Your Home | Shawnessy, Calgary Real Estate | Somerset | South Calgary, Calgary Real Estate | Southview, Calgary Real Estate | Spruce Cliff, Calgary Real Estate | Strathmore | Strathmore, Strathmore Real Estate | Suite | Sundance, Calgary Real Estate | Temple, Calgary Real Estate | Turtle Lake Real Estate | Tuscany, Calgary Real Estate | Victoria Park, Calgary Real Estate | Whitehorn | Whitehorn, Calgary Real Estate | Woodbine, Calgary Real Estate
RSS

This is the question that I get most asked: Should I go with a fixed or variable mortgage?

In the past, when the spread between the variable and fixed rates were way farther apart, it was an easy answer, as long as the client didn’t mind their monthly payments fluctuating. I would always answer: Go with the variable.

This was because, historically, the variable has saved homeowners money more than 85% of the time. However, times have changed and the spread between the variable and fixed rates has become a lot closer, since banks are not discounting the variable rates as much,  the best variable now is prime – 0.35%, that equates to 2.65%. The best fixed rate right now for a five year term is 3.29%. The spreads have come closer primarily because banks are losing money on the variable side and are trying to direct borrowers to the fixed side with lower spreads.

So back to the question: Should I go with the variable or fixed mortgage?

With the fixed rate mortgage, homeowners lock in their mortgage for a period of time, the most popular being the five year fixed-rate mortgage. Since rates can arguably only go up from the rates we are at, it seems like a logical decision to go with a fixed mortgage.

The difference between today’s variable rate, which is 2.65% and the four year fixed, 2.99%, is a difference of 34 basis points or just over one rate hike.

This is a small difference to have the security knowing that you won’t have to pay more if rates were to rise.

Moshe Milevsky, professor at York University and an author of mortgage studies says that the savings that one may get from variable rates in the future will be a lot lower then what was once enjoyed.

However, a person’s circumstances should dictate if they should go with a fixed or variable mortgage. If a person can take on the fluctuation of monthly payments, then the variable is ok for them.

One must remember that a mortgage is only one piece of a person’s total financial plan.

However, if you are still struggling to decide which mortgage is right for you, these are the top considerations to think about:

1.     Your Financials

Since variable – rate mortgages take on more risk, a person needs to know whether they are able to take on a fluctuating variable – rate mortgage. A person’s income should be stable, their debt should be low, a person’s sensitivity to risk should be low, and any assets a person has, are able to be turned into cash if cash flow tightens.

2.     Spreads

This is the difference between the variable – rate mortgage and the fixed rate mortgage. When this difference tightens, the variable losses some advantage. When the spread is less than one percentage point and the economy is at the bottom of an economic cycle, like we are now, the fixed has a higher probability of outperforming. Today’s spread between a five year fixed and a variable mortgage is half a percentage point. Based on this, a fixed is likely to outperform.

3.     Breaking Your Mortgage Early

One bank study pegged the duration of a five year mortgage is 3.3 years. This is because people break their five year mortgage early to refinance, sell, divorce, or just change to a mortgage with a better rate. Penalties on variables tend to be less, only three months interest, compared to breaking a fixed rate mortgage. Penalties for breaking the fixed rate can be a lot more expensive because of lenders interest rate differential penalties. If there is a chance you will break your mortgage, a variable may cost you less.

4.     Flexibility

Variables give you the option of changing your mind and locking into a fixed rate option. However, a lender’s rate to convert is about a fifth to a half a percentage point above its best fixed rate.

5.     Alternatives

The five year fixed and the variable mortgages are not the only options; look at shorter fixed terms. Today, you can find a two year fixed rate at 2.49%, where most variables are at 2.7% - 2.90%. You can diversify risk by using a hybrid mortgage. This is part fixed and part variable.

6.     Knowing Your Rate

There is comfort to know what your monthly payments will be from month to month. Variable rate borrowers don’t have this comfort and may have to tolerate some anxiety if rates start to rise.

Read

 
First year-over-year increase in monthly condominium sales since April 2010

 

Calgary, July 4, 2011 – According to figures released today by CREB® (Calgary Real Estate Board), residential sales surged in the month of June 2011 to 1,979 units. While this indicates a third more sales than June 2010, the year-todate increase proved a moderate 2 per cent. Strong monthly increases does not imply a housing boom, as it is important to put into perspective that sales

activity remains below long term averages. While the single family market has shown signs of improvement throughout the first half of this year, this is the first time since April 2010 that condominium sales have recorded a year-over year increase.

 

“Improved housing demand is being fueled by a younger demographic and, with the affordability of homes in Calgary, we are continuing to see young Calgarians pursue ownership over rentals,” says Sano Stante, president of CREB®.

 

“Historically, Calgary’s average family income has been higher than the national average and a younger more mobile demographic has been attracted to good paying professional jobs in Calgary. As the economy continues to build momentum, we expect this same trend will support a balanced and healthy

housing market in the second half of 2011 and into 2012.”

 

With 581 sales for the month of June 2011, the condominium market improved by 31 per cent over June of 2010, however year-to-date figures show a 5 per cent decrease over the same period last year.

 

“Condo sales bounced back this month, and we now have less than four months of supply on the market. Stronger condo sales, combined with a decline in inventory, will lend more balance to this market in the months to come,” says Stante.

 

After the first half of the year, average prices of condominiums are still slightly lower than levels recorded last year, as more buyers bought condominiums under $200,000 in 2011 compared to 2010 for the same period.
 

“Buyers in this market expect value and many are taking advantage of some affordable buys in both the single family and condo markets. It highlights using a skilled REALTOR® to properly price your home for your unique market area,” says Stante.

 

The single family market recorded 1,398 sales in the month of June 2011. This is an increase of 32 per cent when compared to June 2010 when 1,059 single family homes sold in the city of Calgary. With a total of 7,231 sales after the first half of the year, year-to-date single family sales are 6 per cent higher than last year.

 

“While new listings are still lower than levels recorded last year, the rate of decline has eased. With the market shifting to more balanced conditions in recent months, sellers are feeling more confident to list their home. Overall our absorption rate has remained relatively stable, staving off any significant rise in

prices,” says Stante.

 

Year-to-date average price of a single family home in Calgary is $472,330, while the median price is $410,000, virtually unchanged over levels recorded in the previous year. The distribution of sales by price range has not shown any significant shift compared to last year, pointing to continued stability in the market.
 

“After the first half of the year, it appears the recovery in the housing market is starting to find its footing.

This gradual leveling has been fueled by growth in employment, and in particular growth in full time jobs. Improved job prospects, combined with an increase in the number of people moving to Calgary, will give lift to our housing market for the remainder of this year and into the

next,” says Stante.

 

Read

Higher priced homes selling faster as listings trend down
 

According to figures released today by CREB® (Calgary Real Estate Board), City of Calgary year-to-date sales declined by 4 per cent compared to the first four months of 2010. The decline was offset by a 14 per cent drop in listings recorded over the same period, resulting in lower inventory levels, and a moderate growth in average prices.

 

In April 2011, single family home sales were 1,217, while 2,299 listings came to market, a decline of 10 per cent over April 2010 and 25 per cent, respectively. Inventory levels rose slightly over March 2011

levels, but remained well below inventories recorded in April 2010, and close to the long term average, indicating the market continues to show balanced conditions.
 
“While our spring market has been a little slow to get started, we are seeing our inventory levels return to healthy levels,” says Sano Stante, president of CREB®. “This trend, combined with an improving job market, will help warm up Calgary’s housing market in the coming months.”
 
Along with a decline in inventory, Stante points out that homes in the higher-end of the market are selling faster, with average days on market trending down, and below the 5-year average.
 
“We are seeing improvements in the sale of homes in the higher price points. Homes above $700,000 are selling within an average of 41 days. This is consistent with pre-recession levels,” says Stante.
 
To view the full report and current Calgary market stats, click here.
Read

Calgary, February 1, 2011
 

– Single family home sales in the City of Calgary edged upwards month-over-month and showed the first yearover-year increase since April  2010, according to figures released today by CREB® (Calgary Real Estate Board).

 

The number of single family home sales in the month of January 2011 were 787, compared with December 2010, when sales were 734— an increase of about 7 per cent. The number of condominium sales for the month of January 2011 was 297. This was down from the 320 condominium transactions recorded in December 2010.
 
Year-over-year, the number of single family homes sold in January 2011 in the city of Calgary increased by just over 3 per cent. In January 2010, single family home sales totaled 762. Condominium sales saw a decrease of 21 per cent from the same time a year ago. In January 2010, condominium sales were 376.
 
“More affordable housing will continue to attract homebuyers to the inner-city, particularly as employment in the city of Calgary continues to improve,” says Sano Stante, president of CREB®. “Single family homes in the city are currently driving this gradual recovery, and we are seeing an uptick in the sale of homes below the $350,000 price point. This may suggest more first time homebuyers are entering the market, providing the fuel needed for a sustained housing recovery.”
 
The average price of a single family home in the city of Calgary in January 2011 was $454,287, showing a 3 per cent increase from December 2010, when the average price was $441,341, and a 3 per cent increase from January 2010, when the average price was $441,217. The average price of a condominium in the city of Calgary in January 2011 was $287,954, showing a 2 per cent increase from December 2010, when the average price was $282,768 and a 2 per cent increase over last year, when the average price was $282,639.
 
The median price of a single family home in the city of Calgary for January 2011 was $390,000, showing a slight increase from December 2010 when the median price was $389,000. This was a 2 per cent decrease from January 2010, when the median price was $398,000.
 
The median price of a condominium in January 2011 was $255,000, showing a 1 per cent decrease from December 2010, when the median price was $258,500, and a 4 per cent decrease from January 2010, when it was $265,000.
 
“The recovery in 2011 will be incremental and gradual. Nonetheless, at the moment Calgary is offering buyers a great deal of affordability, low interest rates and a large selection of inventory,” says Stante. “Overall the first quarter of 2011 will show modest improvements in sales which will lay the foundation for the return to a more balanced market,” he adds.
 

Single family listings in the city of Calgary added for the month of January 2011 totaled 1958, an increase of 169 per cent from December 2010 when 728 new listings were added, and showing an increase of 7 per cent from January 2010, when 1822 new listings came to the market.

Read

Well, we finally have some details and insight for the 2011 housing market, and it's about to get tougher for new home owners, and even those currently in the market.

There have been significant announcements this week for everyone interesting in buying or selling a home.  Timing is everything, and it appears that once again, there will be some significant changes that you need to be aware of. 

Considering the forecast for the Calgary Housing market to start increasing in pricing, and the tighter mortgage rules that will be coming into force in 60 days, now might be a vital window for home owners that are currently considering a move.

It is especially urgent for homeowners who are currently wishing to sell their current homes and lock in a new mortgage rate on a newly purchased home.  With only 60 days to finalize before the new rates come into effect, it will be a challenge to get a home on the market and sold in time to take advantage of the current status.  The up side is that over the next two months, the market may get very fluid with those who need to take advantage of the current mortgage rules.

I received the following details from one of my mortgage specialists advising that there will be some major changes in how mortgages are approved. This is a significant tightening for those of you who are currently considering purchasing a new home.

1.       No more 35 year amortizations

 

As of March 18, 2011 all insured deals will be allowed a 30 year amortization. Any fully signed contracts whether it be a purchase or refinance committed to by CMHC on or before March 18 will be honoured over 35 years.  You cannot have an increase in price after this date - if you do, you will be subject to the 30 year amortization.

2.       Refinancing has been scaled back to 85%.

 

As of March 18th,  home owners will have access to 85% of the value of a home instead of the current 90%. This will affect  you as a  home buyer when you take equity out of your home for a down payment.  In this case, you won’t be able to get as much funding up front and your monthly  payments will be higher.

Current and potential buyers please note that the magic date is March 18th, 2011.

On a $450,000 purchase with 5% down, this would save you $200.00 per month in mortgage payments and your affordability increases by 3%.

For those who are considering a home purchase requiring an insured mortgage (less than 20% down payment), you will want to complete pre-approval and possession of home prior to March 18 2011.

If you are currently sitting on the fence as to whether or not to make your move it is important to understand that buying today will save you money in the long run. After March 18th, this window will be closed.

If you are currently considering a home purchase and would like to speak to a mortgage specialist, I have excellent resources who are very talented in obtaining financing.  Please feel free to call me at 403-399-0809 and I will put you in touch with someone who can assist you according to your current circumstances.

For further information on these changes, and the background associated, here are a few links you can visit:

The Harper Government Takes Prudent Action to Support the Long-Term Stability of Canada’s Housing Market

Backgrounder: Supporting the long-term stability of Canada’s housing market

CALGARY HERALD ARTICLE: FeDERAL GOVERNMENT TIGHTENS MORTGAGE RULES AGAIN

Read

The Calgary Real Estate Board released is annual forecast on Tuesday, advising that there will be a recovery in the market this year with improved sales compared with 2010.

The board is predicting that Calgary's housing inventory levels are expected to stabilize, which will result in a return to a more balanced and sustainable housing market.

It forecasts single-family home sales to increase by 19.9 per cent this year to 14,500 transactions  and the average MLS sale price is predicted to rise 4.1 per cent to $480,000.

The board also predicted that condominium sales will rise by 15.8 per cent to 6000 transactions with the average sale price increasing by 1.8 per cent to $295,900.

In the towns outside of Calgary market, the board is forecasting a 13.5 per cent increase to 4,000 with the average price increasing by 2.6 per cent to $368,500.

Sano Stante, president of the real estate board, said that his forecast wouldn't change in light of the federal government's announcement to toughen up mortgage lending practices.

"We are expecting in-migration into Calgary.  If we see the job growth that we expect to happen in Calgary then the in-migration should drive the sales."

The boards report states that the key to market recovery in 2011 will be permanent job creation sufficient to stimulate in-migration. Recovery in the first half of the year will be more modest, picking up pace in the second half. Recovery of sales will be from single family homes close to the downtown core, and by condos and single family homes in the outlying areas.

" 2011 will offer buyers unprecedented affordability, low interest rates and a large selection of inventory."

The CMHC, is predicting increased sales, with residential properties in the sold in the Calgary area to increase by 2.0 per cent this year to 20,700 units, with an increase in the average sale price.

Read

Housing sales in December declined from November, and the median house price has dropped 3% in comparison to 2009. Following are excerpts from the most current news release from the Calgary Real Estate Board.
 
Home and condo sales in Calgary and area remained relatively unchanged in December 2010, indicating that a full-fledged recovery in the housing market has yet to take hold, according to
fi gures released today by the Calgary Real Estate Board (CREB®).
 

 

The number of single family home sales in the month of December 2010 were 734, compared with

November 2010, when sales were 891—a decline of about 18 per cent. The number of condominium sales for the month of December 2010 was 320. This was up from the 310 condominium transactions recorded in November 2010.

 
Undoubtedly housing markets in Alberta and Calgary underperformed in 2010, as sales recoveries did not materialize as forecasted. In many ways, re-sales in 2010 showed a repeat of 2008, with a short lived resurgence in the  fi rst few months, when confi dence returned to the market,” says Diane Scott, president of CREB®.
 

 

“Employment and net-migration have been slower to pick up here in Calgary—and these are key drivers of our housing market. The good news is we arenow seeing marked improvements in investment and employment in the energy sector. We believe these green shoots in our economy, supported by improved affordability and low interest rates, will eventually translate into a gradual recovery of our housing market as we move into 2011,” adds Scott.

 

“Supply outstripped demand in the second half of 2010, establishing conditions for a buyers’ market. Overall we did see significant improvements in affordability in the Calgary market in 2010—and I think the message to prospective buyers is that this is a great time to buy if you’re looking for good selection, specific locations and price points. The median price did indeed decline in 2010, signaling a year-over-year price correction of about 2 per cent for single-family homes, just over 4 per cent for condos and 6 per cent for the outlying towns,” adds Scott.

 

Single family listings in the city of Calgary added for the month of December 2010 totaled 744, a decrease of 44 per cent from November 2010 when 1,318 new listings were added, and showing a decrease of 8 per cent from December 2009, when 806 new listings came to the market.

Condominium new listings in the city of Calgary added for December 2010 were 369, down 42 per cent from November 2010, when the MLS® saw 632 condo listings coming to the market. This is a decrease of 17 per cent from December 2009, when new condominium listings added were 444.
 
To read the entire report and see the latest statistics, visit http://www.creb.com/public/documents/statistics/2010/package/res-stats-2010%20December.pdf
Read

It was disappointing to see prices and home sales slide again last month after a slight increase in September.  Home sales in the city of Calgary were down month-over-month in October 2010. The number of single family homes sold in October dropped 7% from September.

Buyers are still remaining cautious, keeping the market soft.  The year over year sales continued to decline in October. 

The average prices of single family homes in the city of Calgary in October 2010 decreased 3% from September 2010, when the average price was $460,278, and a 4 per cent decrease from October 2009, when the average price was $462,465.

The fact remains that the market is still soft and sellers need to be cognizant of this as it affects what they can reasonably expect to list their homes for if deciding to sell.  

On the up side, there were 22% fewer listings of homes in October than September, lowering inventory (number of homes available for sale) which in the long run will help to balance the market.

These stats were released on November 1st by the Calgary Real Board (CREB ®).

Read

Hello everyone!

Market Update!  A bit of good news!!

For the first time in many months there appears to be a turnaround in the Calgary Housing Market!  The Calgary Real Estate Board just released the stats for September and while the changes are modest, it is the first uptick in the Calgary market since April.

In short, the number of houses available for sale in the Calgary market has fallen, but the number of sales of homes has increased for the first time in six months.  Along with the increase in the number of homes sold a significant indicator of possible change is that the average median price of homes sold from August to September increased by almost $15,000.00.  If you would like to see the actual stats feel free to send me an email requesting a copy of the CREB Stats and I’ll forward the information to you in an email attachment.

In the homes I have had listed, I have noted and increased number of showings over the last few weeks as well.  While all these indicators are modest, it is certainly a refreshing change from the six months of steady downturn we have been experiencing, and appears to show that the real estate market is beginning to come to life again.

iPhone/Android App Update

I appreciate everyone who has downloaded my iPhone App to search the Calgary MLS system.  It has become quite a popular application.  Don’t be afraid to explore everything it has to offer, and if you have any questions or requests about a property, you can click on the links provided in the listings on the app to notify me and I will be happy to get back to you right away.  Keep in mind that if you sign into the VOW on HouseHuntingAdventures.com it opens up a special account for you where you can save all your home searches for comparables and once set up, you can do the same from your iPhone or Android as well.   If you have any questions, just call!

New to Canada?

I have many clients who are new to Canada who I have guided in their real estate adventures and I understand much of what it is like when coming into a new country.  I experienced coming to Canada, not knowing the languages here, first moving to Quebec and learning the French language, then to Calgary and learning English (Czech is my home language).  The challenges were difficult, but also a great character builder for me, especially while raising three children on my own.  I truly understand all the frustration with moving and setting down roots.  My desire is to help anyone who is a client of mine to make their transition as easy and cost manageable as possible.

 Keep it Drama Free!

I can really empathize with anyone when it comes to moving and all the related stresses and headaches. I’ve been there and done that on my own with my children, many times.  Every move made me a little wiser and I became an organizational wizard!  I understand all about moving a family, and the financial stresses and strains that can ensue.

Through my personal experiences as well as my experience as a REALTOR©, I have compiled a wonderful list of resources;  from excellent mortgage brokers who are very talented at locating great mortgage rates and helping you to qualify, to home inspectors  capable ensuring nothing is missed when you are looking to purchase a new home.

Please let me know if I can be of service to you.  Even if you are just at the research stage in locating a new home, or you simply would like to have a current market evaluation done on your home to determine what your next step should be, I’m here for you.  Please don’t hesitate to call me at any time. 

My personal cell phone number is 403-399-0809, or if you prefer, my personal Email of Natasha@HouseHuntingAdventures.com.

Wishing you a wonderful Thanksgiving!

 

Natasha

Read

By Mario Toneguzzi, Calgary Herald August 25, 2010

 

A high inventory of homes for sale combined with a softening demand from potential homebuyers is starting to put downward pressure on Calgary MLS prices.
 
Preliminary and unofficial data for August month-to-date indicates prices are dropping from levels of the past few months in both the single-family and condominium market.
 
"We have almost the same number of buyers that we had in December but we have so many more listings," said Gary MacLean, a realtor with Re/Max Real Estate Central. "It's like having a Safeway that got two times as big but only has the same number of customers coming in the door and in order to get rid of the inventory they have to reduce the prices.
 
"It's a supply and demand issue. There's an oversupply of houses not only here but all across Canada and the number of buyers are decreasing."
 
For example, at the end of December one of every 1.6 houses listed for sale were selling. In July, that ratio jumped to one for every 6.6 listings. The month-end inventory of properties for sale in Calgary metro at the end of December was 3,258. It was 7,982 at the end of July.
 
MacLean said the inventory is starting to shrink but it's not as a result of increasing sales. Many people have simply taken their homes off the market.
 
According to preliminary, unofficial data on the website of realtor Mike Fotiou, of First Place Realty, there have been 661 single-family home MLS sales in Calgary for an average price of $441,469 month-to-date until Tuesday.
 
In July for the entire month, there were 915 sales for an average of $464,655 and in August 2009 there were 1,277 sales for an average of $454,130.
 

The average MLS sale price peaked this year in May at $483,240.

The condominium market is showing a similar story with sales so far this month at 271 for an average price of $283,485. In July, there were 396 condo transactions averaging $291,168 and in August 2009 there were 632 sales for an average price of $283,330.
 

The average MLS sale price for a condo peaked this year in May as well at $304,662.

Diane Scott, president of the Calgary Real Estate Board, said supply and demand is playing a role on current average prices but there's also the factor of luxury home sales.

"Homes sold over $1 million are down in numbers from last year for the same period," she said. "June to August last year we had 98 sales over $1 million. This year we've had 87 ... That will drive the average price down as well for sure."
 

On Wednesday, the Teranet-National Bank Composite House Price Index showed Calgary was lagging behind other major Canadian centres in the rate of change for home prices.

The index is estimated by tracking observed or registered home prices over time using data collected from public land registries and all dwellings that have been sold at least twice are considered in the calculation of the index.
 
The report said in June Calgary prices rose by 0.2 per cent on a monthly basis behind Ottawa (2.7 per cent), Toronto (2.4 per cent), Montreal (1.4 per cent), Halifax (1.3 per cent) and Vancouver (0.8 per cent). The national average was 1.5 per cent, the 14th consecutive month of increases.
 
On a year-over-year basis, the national average was 13.6 per cent growth led by Vancouver at 16.3 per cent and followed by Toronto (16.2 per cent), Ottawa (12.0 per cent), Montreal (8.7 per cent), Calgary (8.3 per cent) and Halifax (7.1 per cent).
 

mtoneguzzi@theherald.canwest.com



Read more: http://www.calgaryherald.com/business/real-estate/High+inventory+cooling+sales+pressure+house+prices/3440610/story.html#ixzz0yyLPwgI0
Read

Now might just be the best time to lock into a fixed-rate mortgage, especially for those homeowners on a tight budget, according to an expert broker.
 
The Bank of Canada hiked its overnight lending rate by 25 basis points Wednesday, and variable mortgage rate products offered through major lenders are expected to rise in step.
 
Despite Wednesday’s increase, variable rates -- hovering between 2.05% and 2.25% these days -- still offer savings compared to fixed-rate plans in the near term.
 
But there is an argument for locking into a fixed rate sooner rather than later, said Gary Siegle, a Calgary-based regional manager at Invis.
 
The rate for the popular five-year fixed mortgage has recently dropped to a commonly available 3.89% and is as low as 3.6% in some cases.
 
We haven’t seen rates this low in recent memory, Siegle said.
 
“There are lots of people out there who are saying: Why would you overlook the fact that we haven’t seen five-year rates this low in a long, long time?
 

“Why would you not take advantage of historic low interest rates?”

Unfortunately, the answer isn’t clear-cut, Siegle said.
 
Some people are choosing to overlook low fixed rates because the variable options are still cheaper and may be for some time.
 

However, mortgage holders do need to consider that variable rates do change eventually.

“And the direction everyone is predicting that they’ll go is up. It’s a question of how much and when,” Siegle said.
 

Floating rates have historically been the cheaper option over the entire life of a mortgage but not everyone can stomach the often dramatic swings in monthly expenses.

“It’s a question also of psyche,” Siegle said.
 
People who are generally nervous or who are on a tight budget might be better off locking in now, he said.
 

“Even though they are giving up that 1.25%, they are gaining a lot of peace of mind.”

Homeowners considering the switch to a fixed plan could look into whether there is penalty for switching mid-term, Siegle said.
 
Either way, both variable and fixed-rate mortgage holders can take advantage of current borrowing prices by paying down as much of the principal amount as quickly as possible. That way, as rates go up, total debt burden will be lowered come renewal time.
 

Whereas the central bank influences variable rates, the bond market influences fixed-rate mortgages.

The slower-than-expected economy has fuelled investor interest in the bond rally, pushing yields down and allowing banks to offer attractive fixed-rate products.

Read

Calgary Market Update for September 1, 2010
- courtesy of the Calgary Real Estate Board
 
Home sales in the city of Calgary continued to trend lower in the month of August, according to figures released today by the Calgary Real Estate Board (CREB®).

 

The number of single family homes sold in August 2010 in the city of Calgary was down 32 per cent from the same time a year ago, and condominium sales saw a decrease of 42 per cent from the same time a year ago.

 

August 2010 saw 867 single family homes sold in the city of Calgary. This is a decrease of 5 per cent

from 915 sales in July 2010. In August 2009, single family home sales totalled 1,277. The number of

condominium sales for the month of August 2010 was 364. This was a decrease of 8 per cent from the 396 condominium transactions recorded in July 2010.
 
In August 2009, condominium sales were 632. “Calgary’s housing market has been undergoing a
measured correction over the past 4 to 5 months. Sales are trending lower as a result of a increase in first time home buyers entering the market and a decline in pent up demand following a strong post-recession recovery,” says Diane Scott, president of CREB®.
 

“There has been much talk recently about the potential for a housing bubble in Canada--but the economic fundamentals at play make this scenario unlikely for Calgary. What we are seeing is an adjustment to higher levels of inventory and a shift to a buyer’s market.”

 

“A slower than anticipated pace of mortgage rate hikes and continued improvements in  employment are more likely to bring stability rather than volatility into Calgary’s housing market as we move into 2011, ” adds Scott.
 
The average price of a single family home in the city of Calgary in August 2010 was $445,617, showing a 4 per cent decrease from July 2010, when the average price was $464,655, and a decrease of 2 per cent from August 2009, when the average price was $454,130.
 

The average price of a condominium in the city of Calgary in August 2010 was $286,384, showing a 2 per cent decrease from July 2010, when the average price was $291,168 and a 1 per cent increase over last year, when the average price was $283,330. 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.

 
“We expect a period of correction will continue into the fall of this year. Prices may sag in the short-term and level off as we move into 2011,” says Scott. “Homebuyers and sellers should keep in mind that market trends are unique even throughout the wider Calgary region.
 
A case in point is the relative strength of Calgary’s town and country market, where sales have remained at 2009 levels. Homebuyers and sellers should speak to a REALTOR® to better understand the opportunities in our current market,” says Scott.

 

The median price of a single family home in the city of Calgary for August 2010 was $395,000, showing a 1 per cent decrease from July 2010 and August 2009, when the median price was $400,000. The median price of a condominium in August 2010 was $260,000, showing a 3 per cent decrease from July 2010, when the median price was $268,000, and no change from

August 2009, when it was the same – $260,000.
 

All city of Calgary 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.

 

Single family listings in the city of Calgary added for the month of August 2010 totalled 1,960, an increase of less than 1 per cent from July 2010 when 1,942 new listings were added, and showing an increase of 3 per cent from August 2009, when 1,910 new listings came to the market.
 

Condominium new listings in the city of Calgary added for August 2010 were 808, down 9 per cent

from July 2010, when the MLS® saw 890 condo listings coming to the market. This is a decrease of 3 per cent from August 2009, when new condominium listings added were 832.
 

“Total month end inventory for the wider Calgary region is down marginally when compared to July—a trend we expect will continue in the coming months.

 

New listings are also likely to recede in the coming months in response to slowing sales,” adds Scott.

Read

OTTAWA – November 16, 2009 – Monthly MLS® home sales activity continues to run strong, with new monthly records set in July, September, and October. This has prompted The Canadian Real Estate Association to revise its MLS® home sales forecast for 2009 and 2010.
 
CREA now forecasts national activity will reach 460,200 units in 2009, up 6.6 per cent from last year. CREA’s previous forecast issued in August had annual sales this year about even with 2008 levels. The new sales forecast for 2009 puts activity about on par with annual activity in 2004, but below levels reported for the years 2005 through 2007.
 
British Columbia and Ontario are still forecast to post annual increases in activity this year, but the forecast has been lifted as a result of recent record level activity in both provinces. In addition, Alberta, Saskatchewan, Quebec, and Prince Edward Island are also now forecast to post an annual increase in activity in 2009. Forecast declines in annual activity have been trimmed for Manitoba and Nova Scotia, and are little changed for New Brunswick and Newfoundland and Labrador.
 
National MLS® home sales activity is forecast to rise seven per cent to 492,300 units in 2010. This is a slightly larger rise in activity than previously forecast. This would make 2010 the second highest year on record for sales, putting activity below the peak reached in 2007, and slightly above the 2005 and 2006 figures. New annual records are forecast for Manitoba and Quebec in 2010.
 
The forecast increase in activity for 2010 reflects significant weakness in activity recorded in the first quarter of 2009. Monthly activity in 2010 is expected to trend downward from recent heights, but the sharp drop inactivity recorded in the in the first quarter of 2009 is not expected to repeat in 2010.
 
New listings began declining in the third quarter of 2008, as many sellers took their home off the market pending an improvement in housing market conditions. CREA’s previous forecast suggested that average price increases in the second half of 2009 would likely result in mild a rebound in listings. In the third quarter of 2009, the number of new listings did post the first quarterly increase in more than a year, which coincided with the return of strong average price increases. New residential listings are expected to continue trending upward.
 

The national MLS® average home price is forecast to climb 4.2 per cent in 2009, reaching a record $317,900. This is an upward revision from the 1.5 per cent gain in CREA’s previous forecast, and reflects the high degree to which the national average price was skewed downward last year by a significant decline in activity in Canada’s priciest markets, and then upward by the rebound in activity.

Alberta remains the only province with a forecast decline in average price in 2009 (-3.0 per cent).
 
Average prices are forecast to rise in all other provinces, with gains ranging from a low of 1.5 per cent in British Columbia to 13.1 per cent in Newfoundland and Labrador.
 
Average prices are forecast to climb a further 4.7 per cent in 2010. Much of the annual increase reflects weakness in the average price in first quarter of 2009, which is not expected to repeat in 2010. Average sale prices are forecast to rise in every province in 2010.
 
The price trend is similar but less dramatic for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average price is forecast to climb 2.9 per cent in 2009, with a further 4.0 per cent rise in 2010. CREA previously forecast that the weighted national average price for MLS® homes sales would hold steady from 2009 to 2010.
 
“Pent-up demand built in late 2008 and early 2009, as many buyers moved to the sidelines pending an improved economic outlook,” said CREA President Dale Ripplinger. “With the economic outlook having improved since then, the release of that pent-up demand will boost activity over the rest of the year and in 2010.”
 
“Significant weakness in activity and average prices seen in late 2008 and earlier this year is not expected to repeat in 2010, so 2010 will look a lot better by comparison,” said CREA Chief Economist Gregory Klump. “The raised outlook for MLS® sales activity in 2010 still puts annual activity below the pre-recession peak recorded for 2007.”
 
For the complete release:
 

http://www.crea.ca/public/news_stats/pdfs/mlsForecast_nov09.pdf

Read
Categories:   | Abbeydale, Calgary Real Estate | Airdrie, Airdrie Real Estate | Alberta Housing Market | alberta housing market forecast 2012 | Alberta Housing Market, housing projections, cmhc | Alberta Housing Market, housing projections, cmhc, Calgary housing market, chestermere homes for sale | Alberta Land Tax | Android | April Market Update | April Market Updates for Calgary | Arbour Lake, Calgary Real Estate | Bowness, Calgary Real Estate | Braeside, Calgary Real Estate | Bragg Creek, Bragg Creek Real Estate | Bridlewood, Calgary Real Estate | Calgary cash incentives | Calgary Economic Recovery | calgary economy | Calgary Economy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Econonomy, Calgary Housing Market, Calgary Real Estate, Chestermere Real Estate | Calgary Grants | Calgary home market | Calgary Home Prices | Calgary home sales | Calgary Homes For Sale | Calgary Housing | Calgary Housing Market | Calgary Housing Market Outlook 2012 | calgary housing market statistics | Calgary Housing Market Update | Calgary Housing Stats | Calgary Housing Trend | Calgary Market Forecast | Calgary Market Outlook 2012 | Calgary Market Update | Calgary Open House | Calgary Properties | Calgary Real Estate | Calgary Real Estate Forecast | Calgary Real Estate Market | Calgary Real Estate Stats | Calgary Relocation | Canada Housing Market | Canada Mortgage Update | Cardston, Cardston Real Estate | Carstairs, Carstairs Real Estate | Chaparral, Calgary Real Estate | Chestermere | Chestermere home for sale | Chestermere Homes | Chestermere Housing Market | Chestermere Open House | Chestermere Real Estate | Chestermere Real Estate Stats | Chestermere Realtor | Chestermere, Chestermere Real Estate | Citadel, Calgary Real Estate | Cityscape, Calgary Real Estate | CMA, Market Analysis, Selling Price, Fair Market Value, Home Value, home price | CMHC | Connaught | Connaught, Calgary Real Estate | Country Hills | Country Hills, Calgary Real Estate | Coventry Hills, Calgary Real Estate | Dalhousie, Calgary Real Estate | Deer Ridge, Calgary Real Estate | Deer Run, Calgary Real Estate | Dover, Calgary Real Estate | economic recovery | Economy | Evanston, Calgary Real Estate | Executive Home for Sale | Falconridge, Calgary Real Estate | Finance | First Time Home Buyers | foreclosure | Garrison Green | Garrison Green, Calgary Real Estate | Harvest Hills, Calgary Real Estate | Hawkwood, Calgary Real Estate | Hillhurst, Calgary Real Estate | Housing Trends | Inglewood, Calgary Real Estate | IPhone | January 2013 Market Update | Lake Bonavista, Calgary Real Estate | Lakeside Home For Sale | Langdon | Langdon, Langdon Real Estate | Lyalta, Lyalta Real Estate | Mahogany, Calgary Real Estate | Market Trends | Market Update | Market Value | Marlborough Park, Calgary Real Estate | Martindale, Calgary Real Estate | Mayland Heights, Calgary Real Estate | McKenzie Towne, Calgary Real Estate | MLS QR Code | MLS Search | MLS Search, Personal Real Estate Office, Real Estate, home search, compare homes, search for homes | Monterey Park, Calgary Real Estate | Mortgage | Mortgage Fraud | Mortgage Rates | Mortgage Registration | Mortgages | New Listing | Okotoks, Foothills Real Estate | Okotoks, Okotoks Real Estate | Open House | Pineridge, Calgary Real Estate | Pricing Your Home For Sale | QR Code | Real Estate | Real Estate App | Real Estate Forecast | Real Estate GPS QR Code | Real Estate Integrity | Real Estate QR Code | Real Estate, Chestermere Real Estate, Calgary, Buy, Sell, home | Recession | Redcarpet_Mountview, Calgary Real Estate | Rent vs Buy | Rental Property | Rental Property, Calgary Rental, First Time Home Buyers | Rosscarrock | Rosscarrock, Calgary Real Estate | Rural Rocky View MD, Rural Rocky View County Real Estate | Rural Rocky View MD, Rural Rocky View MD Real Estate | Rural Rocky View MD, Rural Rockyview County Real Estate | Rural Wheatland County, Rural Wheatland County Real Estate | Sage Hill, Calgary Real Estate | Secondary Suite | Sell Your Home | Selling Your Home | Shawnessy, Calgary Real Estate | Somerset | South Calgary, Calgary Real Estate | Southview, Calgary Real Estate | Spruce Cliff, Calgary Real Estate | Strathmore | Strathmore, Strathmore Real Estate | Suite | Sundance, Calgary Real Estate | Temple, Calgary Real Estate | Turtle Lake Real Estate | Tuscany, Calgary Real Estate | Victoria Park, Calgary Real Estate | Whitehorn | Whitehorn, Calgary Real Estate | Woodbine, Calgary Real Estate
Categories
Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.