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February 2011 Real Estate Newsletter
FROM LOUISE FULLER |
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Visit My Website to View Fantastic Canmore listings.
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Greetings!,
Sales for the month of January 2011 are as follows:
Please remember these are averages only.
Single family: 7 sales, average sale price $814,100, average days on market 79 (DOM).
Half duplex:2 sales, average sale price $750,000, average days on market 61 (DOM),
Townhouse: 6 sales, average sale price $443,333, average days on market 179 (DOM).
Apartment: 5 sales, average sale price $228,800, average days on market 108 (DOM).
Fourplex: 3 sales, average sale price $504,666, average days on market 135 (DOM).
Lots: 1 sale, average sale price $462,000 average days on market 9 (DOM).
For specific details, please email or call and I would be happy to be of assistance.
Best Regards,
Louise Fuller |
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106 Spray Drive
Feature Listing
Harvie Heights with Guest Cabin!
Amazing location! At the entrance to Banff National Park, Harvie Heights is a unique community with a tennis court, skating rink, playground and community hall and is surrounded by Wildland Park bordering Banff National Park. The generous lot size (1/3 acre)accommodates the main home, a large detached double garage with workshop space and a fully self sufficient separate cabin for guests! The main home has lots of character. This is an open concept living/dining/kitchen with a wonderful woodburning stove set in a unique stone fireplace and picture window with views out over the front property to the mountains beyond. The cabin (488 sq ft) has large living/bedroom, kitchen and a bathroom. Double garage has workshop space and is fully wired with electricity.
ASKING $750,000
| CLICK HERE FOR MORE INFORMATION
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CREB PREDICTS STEADY GROWTH
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Resale market expected to rebound in 2011
By MYKE THOMAS, SUNMEDIA
The Calgary Real Estate Board - now officially known as CREB - held its annual forecast conference last week at the BMO Centre and the message is steady as she goes.
In what is predicted to be a reversal of activity last year, new CREB president Sano Stante said the board is looking for the Calgary resale market to resemble its old self this year.
"What we're getting back to is a more sustainable period of growth," says Stante. "We're starting to see the fundamentals coming back into the marketplace, bringing incremental growth, with most of the growth coming at the end of the year and we're expecting sales will increase 20% from last year.
"Last year was a pronounced drop and now we're getting back to normal."
Last year, buyers jumped into the market early in order to beat the deadline for the intro duction of more stringent mortgage qualification regulations, resulting in higher year-over-year sales activity through to about June, but then buyers abruptly moved to the sidelines and the year-over-year increases became year-over-year decreases.
At the end of the year, single-family sales were 16% lower than 2009, while condo sales were down 18% in Calgary Metro. In towns measured by CREB outside the city, sales were off 10% year-over-year.
The predicted growth in the market, while small, is still healthy, but dependent on the key economic factors of affordability, particularly job creation and net migration.
In its summar y for the year ahead, CREB said: "Affordability will be key to market expansion and price increases are not likely until the latter half of 2011, when inventories have eased and demand has recovered. With interest rates not expected to increase, there is little urgency for buyers to move into the market in the first half of the year.
"Nonetheless, 2011 will offer buyers unprecedented affordability, low interest rates and a large selection of inventory.
"(Another) key to market recover y in 2011 will be permanent job creation sufficient to stimulate in-migration. For the first time since 2008, oil patch employees are expecting bonuses and profit share at the end of March 2011, which may translate into a flurry of demand in the mid-priced homes.
"This confidence in the oil patch and improvements in the overall global economy may trigger sales of larger and higher-priced homes, prior to an overall rebound in more averagepriced property."
For the year ahead, CREB expects net migration to reach 10,000 people (measured April 2010 to April 2011) and 2% employment growth in Calgary.
Single-family home sales should be 14,5000 this year, a 20% increase over last year, while condo sales are expected to be 6,000 units, up 16% from last year.
The average single-family price is forecast to increase 4% to $480,000, while the average condo price is forecast to be $295,900, up 2%.
Outside the city, sales are expected to increase 14% to 4,000 homes, with an average price of $368,500.
In a nutshell - slow at the beginning, a little bit quicker at the end.
"The growth we had last year was not sustainable because of the factors involved," says Stante.
"The growth we get now will be sustainable growth, growth we can grow on." |
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NEW MORTGAGE RULES MAY AFFECT YOU
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By MYKE THOMAS, SUNMEDIA
Mortgage acquisition regulations were tightened by federal Finance Minister Jim Flaherty last week for the second time in a year.
The changes come after warnings from Flaherty about Canadians' household debt-toincome ratios being at all-time highs and how future interest-rate movements would affect the debt load.
"We're taking these steps ... now because of our concern about higher interest rates down the road," said Flaherty.
There are three changes: The maximum number of years Canada Mortgage and Housing Corp. will insure a mortgage will be lowered to 30 years from 35 years; the maximum amount Canadians can refinance their homes will go from 90% to 85%, and; CMHC will no longer insure home equity lines of credit.
(If you are of the mind to apply for a mortgage or refinancing before the new rules take effect, the first two changes come into law March 18 and the third April 18).
The changes are targeted at high-risk mortgage takers, but will have an effect on everyone.
My mortgage moneyman Mark Herman from Mortgage Alliance does some numbers.
"On a standard $250,000 mortgage, at today's discounted mortgage broker rates of 3.99% for a five-year fixed mortgage, payments increase from $1,100 a month for the 35-year amortization to $1,187 a month for the 30-year amortization," says Herman.
"An employee on a $50,000 salary (at the same rate and term, using $1,200 a year property tax and $100 a month for heat) now only qualifies for a maximum mortgage of $238,620 on the 30-year amortization. On the 35-year, they used to qualify for $257,451.
Herman says the third rule is already widely in use.
"We do not recommend customers refinance above 80% as they would have to re-incur CMHC fees," he says. "This will mainly affect those that were in need of the equity funds - usually to pay down debts or for emergency cash."
The new regulations should not affect purchasing deals currently in the works, says Herman.
"The government said exceptions would be allowed after the new measures come into force when needed to satisfy a home purchase or sale and financing agreement struck before the March and April in-force dates," he says.
There was a proposal that would have required 100% of condo fees to be included in mortgage calculations, but the current rule remains at 50%. While supporting the rules, the Canadian Association of Accredited Mortgage Professionals suggested a future change to the amortization period.
"Rather than reducing the amortization period to 30 years from 35 ... we would have preferred that the government had required those people seeking 35-year amortizations to meet the same qualifying standards as those with a shorter amortization," said Jim Murphy, president and CEO of CAAMP. "We hope the government will revisit this feature as the economy strengthens."
Mortgages are complicated and require the advice of a professional - ask your mortgage broker or lender (instead of your mom) if you need further clarification.
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Thanks for reading and I will send you more info next month.
For all your real estate needs I am ready and willing to help you take that next, very important step.
Sincerely,
Louise Fuller
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