Real Estate Canada Market News

What Happens To The Real Estate Market If Rates Continue To Rise?

  July 7, 2010 – 10:36 pm

Mortgage interest rates have been pleasing to the pocket book of many for a while now so can we expect them to rise any time soon? And if and when they do, how high might they go and what will happen to the real estate market when they do? Should we buy or sell our current home? Should we rent instead of taking on a mortgage at this time? Honest questions posed by people who have become wary of the real estate market because of recent devastating results of a crashing economy all over North America. Home ownership will always be preferable to renting It would be nearly impossible to demonstrate an incidence when renting a place to live would be financially wiser than buying one. Unless you are one of the lucky ones who can afford to pay cash for your home, you will need to take on a mortgage loan ...

Posted in Real Estate News

How Do I Put An Offer On A House?

  July 7, 2010 – 10:19 pm

Because the real estate market has yet fully to recover from the recession, you enjoy all the luxuries of “a buyers’ market.” You have time, and you have lots of choices. Shop around, carefully comparing and contrasting lots of properties, looking for all the amenities and upgrades you want in a home. “Curb appeal” is great, but the current market conditions empower you to be picky about the details. Especially look for energy-saving features in the homes you like: Do the houses have “energy-star” appliances, extra insulation in the walls, programmable thermostats, ceiling fans, and other little extras that will save you hundreds of dollars every year? Pay careful attention to location, studying the quality of the neighborhood and the home’s proximity to schools, parks, and shopping. Take care of the preliminaries. While you are shopping for just the right house, take time to arrange advantageous financing. ...

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Mortgage Interest Rates For July 5th, 2010

  July 6, 2010 – 8:53 am

1yr 2.54% (-0.10%) 2yr 3.05% (0.00%) 3yr 3.49% (0.00%) 4yr 4.14% (-0.14%) 5yr 3.99% (-0.20%) 3yr and 5yr variable closed (Prime - .60%) = 1.90%

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Winnipeg Real Estate Rock Solid

  July 6, 2010 – 8:48 am

There has never been a better time to buy real estate in Winnipeg. So does that mean it is a buyers market? Well actually it is both a buyers and a sellers market in many parts of Canada today. With current interest rates low and home prices on the rise it’s anybody’s guess as to where this boom in the real estate market will end. One thing certain is there have been well over three hundred million dollars in home sales in recent months with no end in sight. Interest rates are going to go ? Currently the rate of interest on mortgage loans is hovering around the six percent mark and that is a big reason sales are currently so high. But that can’t last much longer and predictors say it will rise, perhaps significantly over the next twelve months or so, making this the optimum time to buy… or sell ...

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Fixed Rate vs Variable Rate Mortgages: How Do I Choose

  July 2, 2010 – 11:05 am

Making the decision on whether to utilize a fixed rate mortgage or a variable rate mortgage is not always as simple as it should be due to the various factors that go into making a mortgage decision. Determining which type of mortgage is right for you has a lot to do with how you handle risk and volatility in your financial planning. Even if a variable rate mortgage will save you money in the long run if you are the type of person that needs cost certainty over a long time horizon a fixed rate mortgage may allow you to sleep better at night. Fixed Rate Mortgages Explained A fixed rate mortgage is any mortgage where the interest on the principal is preset for a specified period of time. Generally known as the "mortgage term" this can typically range anywhere from 1 to 5 years and in some cases 10 or 15 years ...

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How Do I Figure Out How Much House I Can Afford?

  July 2, 2010 – 12:52 am

To determine how much you can afford, why not use the same rules and formula lenders apply? Think of it as your pre-pre-qualifying, and especially think of it as excellent practice for your real mortgage application. As you check and double-check all your digits and data, remain aware that your lender will ask you to verify and document all your information—especially about income and assets. Seize the opportunity to request all the documents you need. Meanwhile, you can do some quick and dirty calculations in the privacy of your own home. More than a dozen lenders feature mortgage payment calculators on the websites, and you can extrapolate the monthly income requirements from estimates of your monthly payment. For example, the median priced Canadian home costs approximately $380,000(CAD), which at current rates will cost you approximately $2400(CAD) per month. Lenders expect that your mortgage payment ...

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Bubble? The Next Step In The Canadian Real Estate Market

  July 1, 2010 – 9:05 pm

With interest rates on the rise and the HST tax now in effect in Ontario and BC, all the right factors are in place for a Canadian real estate slow down. But how slow can it go? Bubble Talk Just Hot Air? As the Canadian housing market rebounded vigorously from the economic crisis, talk of a real estate bubble was just as energetic, with some analysts predicting a US-style meltdown resulting from cheap mortgages, job losses and poor affordability in most major Canadian cities. However a good majority of jobs lost have since been recovered, and interest rates, while making modest gains, don’t yet seem to be in any danger of soaring out of control. On the other hand, the worldwide economic outlook is far from rosy, and instability in the EU and the US can still shock Canada’s newfound economic health. So the question becomes, will the robust ...

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Can I List My House On The Multiple Listing Service Without A Real Estate Agent?

  July 1, 2010 – 7:28 am

Many sellers of Canadian real estate wonder, "Can I list my house on the Multiple Listing Service without a real estate agent?" In the past, listings on the MLS were the exclusive domain of full-service real estate brokers who charged 6% commission on the sale of a home. During the spring of 2010, the Canadian Real Estate Association (CREA) relaxed its strict regulation of the behemoth MLS, opening the network to increased competition. Sellers still need a broker to complete their listings on MLS, but they now may pay the agent a flat fee just for that service. Listing on the MLS adds sellers’ listings to major brokers’ websites and to Realtor.com, giving properties global exposure. Real estate brokers still own and control the Canadian Multiple Listing Service, but far more sellers now may gain access to the industry’s oldest, most reliable, and far-reaching listing of properties ...

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Second Mortgages Explained: What Is A Second Mortgage

  June 30, 2010 – 7:59 pm

A second mortgage is a loan that is given by a lender that is secured against the home itself and is superceded by the first mortgage. Any mortgage that is given out against the owner's equity in the home in addition to the existing mortgage is automatically considered a second mortgage. If an owner is unable to make his debt repayments on his loans and is forced into foreclosure the holder of the second mortgage will not receive any money against their note until the first mortgage has been completely paid out. Being a second mortgage holder is a more risky business model and generally requires the borrower to pay a higher interest rate than they do on their first loan for this increased risk. Key Differences Of A Second Mortgage Second mortgages are usually lent for a shorter period of time (typically less than 15 years) Second mortgages can sometimes require a large ...

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How To Become A Real Estate Appraiser In Ontario?

  June 30, 2010 – 5:19 pm

Becoming a real estate appraiser in Ontario Canada will involve completing an education course which is approved by the Real Estate Council of Ontario and passing examinations which will determine if you are qualified. Once you have completed the exams satisfactorily you will be presented with a license. Learning the trade is not really difficult but it takes years of experience to be able to judge the value of many items involved in an appraisal. Many of the obligations are concerned with comparisons of other homes in the area but there the comparisons end because each home and neighborhood is different and the present condition of such things as roof, exterior finish, flooring inside the home, and extras such as square footage and age of the home must be taken into consideration before evaluation can be completed and an appraisal submitted. There are real estate appraiser courses that can be ...

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Vancouver Real Estate: To The Moon Alice!

  June 29, 2010 – 6:30 pm

If you listen to the real estate industry and their spin doctors in the corporate media then markets like Vancouver are not only normal but should be expected to move forever higher in a neverending lovefest of perfection where everyone get's rich and nothing bad ever happens to anyone. Does Anyone Use A Calculator Anymore? Anyone who stops and gives their head a quick shake and actually plugs some numbers into a calculator invariably comes to a different conclusion. The long run "safe" borrowing policy that banks (used to) use is to allow a borrower to leverage no more than 3 times their annual income on a home purchase hopefully with a healthy down payment. The average Vancouver home is now priced at over 7 times the average annual income of families working there trying to afford them. The Vancouver real estate market is in a hot and frothy bubble and ...

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Home Buyers: Beware The Pumpers

  June 28, 2010 – 5:25 pm

If you get your news from the mainstream media outlets in Canada like most Canadians do then your view of the Canadian real estate market and financial system is a rosy one. With home prices that are near all time records and interest rates at all time lows what could there possibly be to worry about if you were considering buying a home? Pump It Up, It Can't Come Down At least that's what the "pump it up", "house prices only go up" real estate industry would have you believe. Mantra's like "it's different here" and "Canadians don't like leverage" or my personal favorite "Canadian banks didn't need a bailout" are all headlines I am sure you have read repeatedly in the past 18 months if you have researched the real estate industry to any degree. The latest home sales figures are in and for the first time in a long ...

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Condos vs Homes : How To Make The Right Decision?

  June 28, 2010 – 9:53 am

Whether you have a comprehensive life plan or just a rough sense of direction, you surely have some idea where buying a home fits in the bigger picture of your expectations and hopes. For a single professional working long hours to lay the foundation for her career, a condominium represents a practical, prudent choice—low maintenance, just the right space, and considerable tax advantage, plus steady gains in value and equity. The condo versus house decision correlates and becomes more complicated with age: Professionals in their twenties and early thirties wisely can use condominiums as the cornerstones of their wealth, the “buy and hold” assets in their portfolios, and they ought to plan on keeping their condos as income properties even after they buy single-family homes. Similarly, newlyweds with only vague plans for children can use investment in a condominium as means for saving the down-payment on a larger ...

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Where Should I Invest in Real Estate Market in Canada?

  June 23, 2010 – 9:46 pm

Where should I invest in real estate market in Canada? If you are looking to invest in real estate in Canada and hoping to make a profit, whether you live there or not, it is advisable to study the market first and perhaps attend a seminar to gather information on where and when to purchase land in Canada. If you are in the market with hopes of selling or are deciding whether you want to buy there is much to learn in order to be successful. For every ten millionaires in Canada at least seven of them have made most of their money by investing in the real estate market in Canada. It is a matter of timing, buying in the right location, and grabbing up properties when the price is right. What to buy? Condo, apartment, home, business? Whatever your intentions you need to be prepared for all the little details involved in ...

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Is Condo Market In Canada Still Strong?

  June 22, 2010 – 7:27 am

Is the condominium market in Canada still strong? Yes, for at least the last five years, Canadian condominium buyers have generated robust growth in the market, and experts predict the market will remain strong. Especially in Vancouver and Toronto, demand for condominiums as investment properties has driven-up prices and sustained a sellers’ market. Not surprisingly, the Olympics set-off a boom in British Columbia real estate, showing the world both the landscape’s beauty and the people’s congeniality. Values of resort properties have soared, increasing the value of all B.C. properties. In the Toronto area, the overheated market will cool during the summer of 2010, because developers will make thousands of units available for pre-sale. For the first time in years, the supply of Toronto condominiums almost will reach equilibrium with demand, stabilizing prices and giving buyers more purchasing power. Experts predict that investors and speculators ...

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Who Are The Buyers in Toronto’s Booming Condo Market?

  June 21, 2010 – 11:43 pm

Who are the buyers in Toronto’s booming condo market? Today the “hot condo” buying business is found in Toronto and business is booming! Many purchasers are shopping for bargains to simply hold a while and then resell, but today more and more people are deciding to stay in the beautiful and progressive city on Lake Ontario’s northern shore and just minutes north of Niagara Falls. In time past condominiums were purchased primarily as a stepping block toward buying ones first home, mostly because they were affordable and easy to resell. But the recent trend in rising prices has seen the condo business as a booming enterprise with homes appreciating significantly over the past few years. It makes good sense to invest in a Toronto condo, and even better sense to move in and remain there. So much to see so much to do in Toronto The Greater Toronto Area has so much to ...

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Mortgage Rates For Monday June 21, 2010

  June 21, 2010 – 8:47 am

Rates: Fixed Rate Closed: 1yr 2.64% 2yr 3.15% 3yr 3.49% 4yr 4.29% 5yr 4.19% 3yr and 5yr variable closed (Prime - .60%) = 1.90%

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Canada’s Real Estate Market – Going Down?

  June 20, 2010 – 7:49 pm

The Canadian real estate market has seen monumental price increases over the past decade but have Canadians reached the limit of how much debt they can service in order to finance these ever increasing home prices? Prices Well Above Long Term Averages Currently across Canada you can find homes priced anywhere from 5 times a families' annual income which is the case in Toronto to the ludicrous Vancouver market where real estate prices have reached over 7 times the average annual income. The long term sustainable average and the general rule of thumb is that you should only leverage 3 times your combined annual income when buying a home. Canadians More Leveraged Then Ever Before Never have Canadians been more leveraged with personal debt in the history of Canada with 1.48 dollars of debt for every dollar of disposable income. Record low interest rates have helped fuel demand for real estate ...

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Should I use a mortgage agent to obtain a mortgage for my future home?

  June 17, 2010 – 8:53 am

Do you need a home mortgage agent? Skilled and thoughtful parents ought to pass the wisdom to their children—by instruction, by example, by constant reminder: Nothing about purchasing a home is easy. Everything about the purchase of a new home is gruelling, torturous, agonizing, and overwhelming. Seek professional help. A home purchase requires hours and hours of investigation, inquiry, thought, reflection, and soul-searching. You will see your dream home, and still you will doubt. Can we afford it? Do we need it? Is it too much? Where will the family be and what will they be doing in five years, ten years, or twenty years? Moreover, a home purchase requires mountains of paperwork or electronic documentation, and it then requires more hours of legal review. Lenders want proof and certification of every detail in your credit application. In short, parents ought to teach, “When ...

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Do You Need A Real Estate Agent?

  May 18, 2010 – 10:33 am

Propertysold.ca Inc. was recently mentioned in an article by the Globe and Mail. We're not sure we totally agree with the tone of the article as we know plenty of real estate agents who earn every penny they make. Readers's are left to judge for themselves: Do you need a real estate agent?

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Canada Mortgage Rates Updates

  April 1, 2010 – 2:06 pm

Closed Fixed 1yr 2.44% 2yr 2.85% 3yr 3.29% 4yr 4.04% 5yr 3.99% 7yr 4.65% 10yr 4.99% Open 3.05% Closed Variable 5yr (Prime – 0.5%) = 1.75%

Posted in Mortgage News

PropertySold Launches Real Estate Forum

  March 30, 2010 – 1:11 pm

Check out the latest addition to the PropertySold.ca Inc. family, our new real estate forum: Real Estate Forum

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Changes to MLS Foretell More Options, Better Prices in Real Estate Future

  March 25, 2010 – 4:11 pm

Changes to the rules of MLS listings will now mean more options for home sellers as well as for agents, and if Canada’s Competition Bureau wins its case, it may be just the beginning. The Canadian Real Estate Association (CREA) announced changes to its Multiple Listing Service last month, the Canada-wide online property listing used by registered real estate agents to market the properties they represent and find potential homes for their buyers. Where previously agents could only list properties that they would represent from start to finish, the new changes now allow an agent to charge a flat fee just to list a property on MLS, a massive database of properties for sale and a major part of the Canadian real estate market. The new rules are a tiny aperture in what was a very strictly regulated service, one so tightly regulated that it caught the attention of Canada’s Competition Bureau. ...

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Days Of Cheap Mortgages Are Numbered: Interest Rates Set To Rise

  March 24, 2010 – 3:45 pm

The days of rock-bottom interest rates may soon come to an abrupt end after February’s inflation numbers showed an unexpected increase, forcing the central bank’s hand much earlier than predicted. Core inflation was estimated to hold steady at about 1.6%, but February showed a sharp jump to 2.1%, a benchmark that was not expected to be reached until the year’s third quarter. The Bank of Canada has maintained interest rates at a record-low 0.25% for more than a year now and had committed to keeping them low, barring any complications with inflation. These complications, it would seem, have arrived - and sooner than expected. “Economic activity in Canada has surprised slightly on the upside in recent weeks relative to the projection in our January Monetary Policy Report,” said the bank’s Governor, Mark Carney, in a speech in Ottawa this week. “Core inflation has been slightly firmer than projected, the ...

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Homes sales rise by 237% in February.

  March 22, 2010 – 7:22 pm

Homes and condos sales increased by more then 237% in February compared to February 2009 in Greater Toronto Area. Average Toronto home sold for $430,000 and 3,148 new homes have been sold.

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CREA Approves Rules That Allow Flat Fee Access to the MLS System

  March 22, 2010 – 2:22 pm

In a move that appears geared to satisfy a recent challenge by the competition bureau, CREA, has approved rules which would allow more flexibility for home sellers to gain access to the MLS system. Under the new rules real estate sellers would be able to pay their agents a flat fee to have their property listed on the MLS system. Agent's would also be required to pass along the contact details for any interested buyers directly to the seller a large shift in policy for the MLS. A CREA press release makes it clear these moves were made in order to try to satisfy a legal challenge by the competition bureau. “Through the pro-active clarifications of the existing rules, CREA believes the concerns raised by the Competition Bureau are fully addressed,” the organization said in a press release. Source: Globe and Mail Whether these moves are enough to settle this dispute is ...

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Letting Air Out Of The Bubble: Canada’s Housing Market Balancing

  March 18, 2010 – 7:24 am

Canada's housing market may be strong but economists are predicting a levelling off in coming months, easing fears of an asset bubble. Stronger inventory, new taxes and tougher mortgage rules should all play a role in cooling the booming housing market in the near future, say analysts, and end-of-year interest rate hikes are expected further squelch what many feared was becoming an unsustainable ascent. New Inventory to Satisfy Demand A recent release by the CREA indicates that available units rose 2.4% to 73,849, the strongest inventory data since October 2008.  The additional availability will help satisfy the continuing demand, which is expected to stay strong in the next couple of months and then adjust downward. Currently, the CREA figures show there is sufficient inventory for the next 4.7 months, up from 4.5 months in January.  With a better supply, buyers will not be forced to compete for a limited ...

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April To Bring New Mortgage Rules Across Canada

  March 11, 2010 – 3:19 pm

Canada's Minister of Finance announced significant changes last month to government-backed mortgages, meant to reduce speculation and ensure future affordability for owners. Minister Jim Flaherty announced three new measures that are to come into effect April 19 th , 2010, that will affect all high-ratio insured mortgages.  The move comes at a time when Canada's booming housing market has sparked fears of a bubble, fueled by record-low interest rates.  Many economists are concerned some buyers have been lured into the market by today's cheap credit, but are unprepared for the inevitable hikes in interest rates that are predicted to begin the second half of 2010.  Subduing a Stable Housing Market However, Mr Flaherty has downplayed the dire predictions, stating that government efforts to stimulate spending were intentional and effective, and that the measures are now meant to moderate the housing market before unsustainable expansion takes hold. "Canada's housing market ...

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Canadian Economy Cautiously Golden

  March 11, 2010 – 3:12 pm

Canada's economy is showing a robust upturn with official figures pinning growth at 5% in the last quarter of 2009, outstripping predictions for more modest growth. The news from Statistics Canada is a welcome indicator that Canada, like the US, is bouncing back from the devastating recession that has sent economies tumbling worldwide. This marks the strongest growth since 2000, well above the 4.1% growth predicted by analysts for the end of 2009, and soaring past third quarter gains of just 0.9%.  The US also announced strong recovery numbers, with its economy expanding by 5.9% for the same period. Real Estate and Spending Drive Growth Exports and real estate transactions played a key role in the recovery, with the housing market showing strong gains through 2009.   January's figures showed sales increased 87% over the same period in 2009, and home prices are up an average 20% nationwide.  Consumer confidence has ...

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PropertySold.ca Mentioned in Canadian Real Estate Magazine article

  March 11, 2010 – 2:18 pm

In the latest issue of "Canadian Real Estate Magazine" our company has been mentioned in an article entitled "Dropping the Agent" by Kit Kadlec. Please click on the thumbnails below to read the article in it's entirety.

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