31 Oct

Positive Out Look For Real Estate 2015


Posted by: Kimberly Walker

Hey, We work with real estate prices everyday and this article below only confirms, what we already know, property prices have increased over the past year and by the article below, that will continue into 2015. Great time to invest or move up..
Daily Market Update Home News by Jamie Henry31 Oct 2014
Positive outlook for housing starts in 2015 Construction next year should be pretty much in line with 2014 according to new figures from the CMHC. “The trend for housing starts has been up in recent months, particularly in multi-unit structures. This has been broadly supported by key factors such as employment, disposable income and net migration, which are expected to continue to be supportive of the Canadian housing market over the 2014-2016 forecast horizon,” said Bob Dugan, Chief Economist for CMHC. The building of condos is likely to moderate during the early part of next year but that will be offset by an uptick in new single-unit starts. The agency predicts that there will be more general moderation in 2016 assuming economic conditions stay roughly in line with expectations.
Most markets to see increased prices over next 12 months Data from CMHC has revealed predictions for house prices and sales levels over the next 2 years with most markets continuing to see price rises. Those increases are predicted to be broadly in line with current levels. There are two areas where declines are forecast; New Brunswick and Prince Edward Island. New data from Statistics Canada due today will shed more light on the state of the economy which could result in revised forecasts for housing.
Most expensive house for sale in Canada revealed The most expensive house for sale in Canada is on the outskirts of Calgary; the first time for a while that the city has surpassed Toronto and Vancouver. The historic house that was once owned by the Ford Motor Company family boasts 2 properties on the 242 acre site and even comes with its own vintage gas station. It will set you back $37.9 million. If you need a big dining room, a property in Toronto’s Bridle Path has one large enough to seat 100 people along with 10 bedrooms and 15 bathrooms; all for a cool $28.8 million. If a coastal view is your thing then a Vancouver property comes with 1.2 acres of land but is essentially a boarded-up wreck. Not exactly a bargain at $25.8 million but the views are stunning! Read the full story.
Wages hike forecast for next year The Conference Board of Canada predicts that we’ll all have a little more money in our pockets in 2015. Their latest report on wage outlook suggests that increases will be slightly above inflation with non-unionized staff receiving an extra 2.9 per cent and those in a union picking up 2 per cent more. Inflation is expected to be 1.9 per cent. With additional benefits for many tax payers as a result of government income-splitting rules announced yesterday it should add a little extra confidence to consumers.
30 Oct

Broker: Variable Will Continue To Trump Fixed.


Posted by: Kimberly Walker

Broker: Variable will continue to trump fixed.

by Jamie Henry | 30 Oct 2014

The message from several brokers is that variable rates still reign supreme, following a story about one financial professional’s personal mortgage blunder.

“From what I analyze daily, low rates will be with us for a long time,” Brian Lambert of Real Mortgage Associates wrote on MortgageBrokerNews.ca. “Even if they rise, it would be only marginally as governments would have to allow time to see what effects that would cause any economy.”

The comment was in response to a story about a financial planner who switched his mortgage from a variable to a fixed rate.

Ted Rechtshaffen — president of TriDelta Financial — speaking to the Financial Post, admitted that in 2009 he switched his variable rate mortgage to a fixed, after heeding warnings that variable rates would be on the rise. And that the move was a mistake.

“I was wrong. I had a variable rate mortgage and in 2009 I pulled the plug and went fixed,” Rechtshaffen, financial planner and president of TriDelta Financial told the Post. “I did mess up, but my question was what benefit do I get locking-in versus going variable?”

It seems brokers will be advising their clients to avoid the same mistake – despite any posturing from the big banks.

“As mortgage professionals we listen to a lot of noise coming from the media and big banks. You really need to read between the lines,” Lambert wrote. “Big banks agenda is to scare clients into locking in to a fixed rate, this secures their profit over a fixed term. The media just churns the message as it makes for news.”


20 Oct

CREA Reports Housing Sales “Ease Back” in September


Posted by: Kimberly Walker

Oct 20, 2014

The Canadian Real Estate Association (CREA) reported last week that Canadian existing home sales declined on a month-over-month basis in September for the first time since January. Volumes were down 1.4% from August’s figures but, on a year-over-year basis, September saw sales which were 10.6% above levels seen in September, …

The Canadian Real Estate Association (CREA) reported last week that Canadian existing home sales declined on a month-over-month basis in September for the first time since January. Volumes were down 1.4% from August’s figures but, on a year-over-year basis, September saw sales which were 10.6% above levels seen in September, 2013. On a year-to-date basis, through the first nine months of 2014, national sales volumes are about 5% higher than at the same point last year.

The national association of realtors says that inventories of listings of affordable homes are scarce in some markets while in others, sellers are holding firm on prices. CREA Chief Economist Gregory Klump commented that “momentum going into the fourth quarter is showing tentative signs of waning”. Low borrowing rates have been driving the market this year and Klump suggests that they will continue to do so, particularly in the country’s hottest markets.

New listings were down 1.6% from August and the national sales-to-new-listings ratio continues to creep upward, ending the month at 55.7% (August’s reading was 55.6%). A reading between 40% and 60% is considered to be “balanced”. Inventory levels (expressed as the time required for all listed homes to sell at the current sales rate) did rise slightly – to 5.9 months from 5.8 months in August. The inventory level held steady at 6 months through May, June and July.

The MLS Home Price Index, which adjusts for the mix of properties sold to provide valid comparisons between periods, was up 5.28% from a year ago. For two-story homes, it rose 6.52%, townhouses were up 5.51%, bungalows 5.07% and the index for apartments (condominiums) rose by 3.05%. The index reading for the big three markets was strong: Calgary advanced 10.11%, Toronto 7.82% and Vancouver’s index rose 5.26%. The average sale price of a Canadian home in September was $408,795, which represents a 5.9% increase from September, 2013. Excluding the two most expensive markets of Vancouver and Toronto, the average price of a home in Canada in September was $325,406. 


9 Oct

New Release: Fraser Valley Real Estate Board – October 2, 2014


Posted by: Kimberly Walker

For Immediate Release: October 2, 2014

 Strong summer for Fraser Valley real estate carries through to September

 SURREY, BC – The Fraser Valley Real Estate Board processed 1,419 sales on its Multiple Listing Service (MLS®) in September, an increase of 25 per cent compared to the 1,131 sales during the same month last year, and an increase of 9 per cent compared to sales in August.

Ray Werger, the Board’s president, says, “Similar to this past summer, this is the busiest September we’ve hadsince 2009 with sales of all property types combined out performing the 10‐year average by 13 per cent.

“Residentially, the single family detached home remains the preferred property type. From North Delta to Mission,sales increased in every Fraser Valley community compared to last year with the price range of $400,000 to $699,999 garnering almost sixty per cent of our total detached market.”

New listing activity was also steady in September with the Board’s MLS® receiving 2,758 new listings, an increase of16 per cent compared to last year, taking the total number of active listings by month end to 9,156, a decrease of 7 per cent compared to September 2013.

Werger adds, “An important factor underlying the housing market is consumer confidence and in our region that confidence has been bolstered by the stability of home prices. Since March, the benchmark price of our three main residential property types combined has remained flat, increasing by only 0.6 per cent.

“Long ‐term, the value of single family detached homes has increased at a faster pace than it has for attached properties, particularly in areas such as Surrey, White Rock, Langley and Abbotsford where we’ve seen many new townhome and condo developments. The supply of new inventory has affected the price of resale product.”

The MLS® Home Price Index (MLS® HPI) benchmark price of a detached home in September was $569,800; anincrease of 3.1 per cent compared to September 2013, when it was $552,900. In the last six months, thebenchmark price of a detached home has increased by 1.1 per cent.

In September, the MLS® HPI benchmark price of Fraser Valley townhouses was $299,600; an increase of 1.1 per cent compared to $296,200 in September of last year, and in the last six months has increased by 0.8 per cent. The benchmark price of apartments decreased yearover‐year by 4.7 per cent, going from $203,100 in September 2013 to $193,600 last month, and has decreased by 0.9 per cent in the last six months.