A New Home for the Holidays

A New Home for the Holidays

Homebuyers - Rushing to get into Market

Canadians are in a rush. An economics strategist, Benjamin Reitzes, at the Bank of Montreal has stated that there is an upward trend in household debt. It may be because homeowners are aware of a change coming. Rietzes believes what is pushing the debt trend is homebuyers rushing to get into the market ahead of the new OSFI rule.

New Rule for Home Buyers Comes into Effect in January of 2018

The Office of the Superintendent of Financial Institutions (OSFI) has established a new minimum qualifying rate, or "stress test," for borrowers making a down payment of more than 20% of the home's value. Previously, stress test requirements only applied to insured mortgages (those with down payments of less than 20%) and most variable mortgages and terms less than five years.

Stress Test Rule for a Prudent Regime

The stress test requirement means that buyers with uninsured mortgages need to prove that they can afford payments based on the greater of the Bank of Canada's five-year benchmark rate (currently 4.89%) or their contract mortgage rate plus two percentage points. According to Superintendent, Jeremy Rudin this will reinforce a strong and prudent regulatory regime for residential mortgage underwriting in Canada."

Time to Buy a Home?

From most perspectives, a home is one of the best purchases worth going into debt for. Do you have questions? Do you need help to figure out what to do next? Give Chris a call 403-680-4479

Affordable Cities - Calgary Ranks 4th World-wide

Affordable Cities - Calgary Ranks 4th World-wide

According to the latest Affordability Index Report, 7 out of the 10 most affordable global cities in terms of home prices are in North America. What was also revealed by the report from Bloomberg Global City Housing is that 3 of these cities are in Canada.

General Rule of Thumb

Based on a general rule of thumb among mortgage lenders, people should spend no more than 28 percent of their net income on their cost of housing. In Canada, Calgary remained the most affordable housing market and the 4th most affordable worldwide, with an average of 40.5% of monthly income going to housing costs.

The Bloomberg Index

The Bloomberg index uses calculations based on the affordability of buying or renting in city centers and suburbs. These rankings are based on self-reported data, including mortgage interest rates and net salary, which are compiled by Numbeo.com, an online database of city and country statistics.

The second least expensive Canadian market and the 6th least expensive globally, was Ottawa with the proportion at 46.1%. The third was Montreal and it was 7th most affordable worldwide at 46.9%.

Least Affordable is Vancouver

The least-affordable metro area in both Canada and the U.S. is Vancouver due some say to the steady influx of foreign cash. It is believed to have caused a surge in housing prices, in turn pushing most domestic buyers out of the market.

Calgary- 5^th Most Liveable City

Also this year, Calgary was rated again as the fifth-most liveable city in the world, according to The Economist. The international magazine's annual Global Liveability Report gave Calgary a score of 96.6 out of 100. It maintains its rank from the previous year on the list of 140 major cities that are evaluated annually. Another organization called The Calgary Economic Development is using this information to promote Calgary. The Board of Directors of this not-for-profit corporation has stated that Calgary isn't just a city to make a good living; it's also a city to make a great life.

For more information and/or to book an appointment give Chris a call 403-680-4479

E-mail: chris@yourhomeinalberta.com Website: http://www.YourHomeInAlberta.com

Calgary Could be the Next Hot Spot!

Calgary May be Next

Calgary Next Hot Spot for Foreign Buyers? Maybe!

To Foreigners Calgary Real Estate Looks Like a Good Buy

The Real Estate Market in Alberta and that of Calgary’s in particular, could soon see an upswing. Foreigners do not face an extra 15 per cent tax unlike non-residents who buy homes in Vancouver and Toronto. Calvin Buss, President of Buss Marketing in Calgary says. "I do think that foreign investors who want to invest in Canada will shift to Calgary, lured by the most attractive returns in the country."

The Economy is Slow to Climb – But...

Alberta's economic health after a steep downturn is still crawling its way back up. As a result, property prices are cheap compared to other regions in Canada. Unlike in Toronto and Vancouver, where foreign investment is seen by some as a malicious influence driving up house prices, some in the real estate business believe that a few more offshore buyers could be beneficial.

Surprise! - Calgary Up Over All

An oil price crash and an unemployment rate that rose to nine per cent last year has not caused the residential real estate market to collapse, as some thought. Sales in Calgary and Edmonton have dropped and prices are somewhat soft yet, year-over-year, the Teranet-National Bank House Price Index confirms that Calgary is up one per cent over-all.

Foreign Investment Welcome

When speaking about foreign buyers, Todd Hirsch, chief economist at ATB Financial has stated that, "They’d actually be welcomed here in Alberta." It's not only cheap prices compared to Toronto and Vancouver. Studies show that, $300,000 will buy you 926 square feet in Calgary but only 520 and 339 square-feet in Toronto and Vancouver respectively. But it's also about the dollar. Foreign investors usually deal in U.S. currency, and the low Canadian dollar makes that cash stretch even further.

Foreigners May Boost up the Real Estate Sector

Hong Wang, a real estate agent in Calgary has said that, "Our market needs support from foreign money." After Vancouver's off-shore tax, Toronto's housing market shot up. This demonstrates how fluid foreign investment can be. Toronto's offshore buyer tax shows how it has cooled house prices. What's next? Will Calgary's house prices shoot into the stratosphere over the ensuing months or years?

Give Real Estate Professionals a call. Talk to Chris @ 403-680-4479

Red Hot Housing Market for Calgary - 2017?

No! Small Growth Expected for Calgary

Unlike the Vancouver and Toronto Real Estate Markets, which have seen major price jumps for homes, Calgary is not expected to see this type of volatility. According the 2017 outlook from the Calgary Real Estate Board, house prices aren't expected to grow by a significant amount this year.

Rise Expected but Not Much

CREB's report stated that, "After falling by 3.2 per cent in 2016, prices for detached homes are projected to rise by 0.8 per cent by the end of 2017. Attached homes, meanwhile, fell by 4.1 per cent last year and projected to increase by 0.5 per cent.

Not a Buyers' Market in 2017

David Brown, CREB president said he doesn't expect buyers to have their pick of price-reduced properties across the board. "There are still some good deals in the market but you're probably not going to see dramatic prices drops as we maybe have seen in the previous years."

Balanced Conditions

Chief economist for CREB, Ann-Marie Lurie, said last year was "a buyers' market, for sure" in Calgary but that is expected to start shifting, particularly in the latter half of 2017. "What we're expecting is we're going to see it gradually shift into more balanced conditions."

Time to Buy into the Condo Market

While there is a modest price increase projected for homes, condo prices are projected to fall by another two per cent, according to CREB. "In the apartment-style condos, you may still see some deals available, but everything else is going to stabilize."

There is Risk and Uncertainty on the Horizon

CREB cautions that numerous risks may affect the housing market in 2017, notably oil prices maintaining an average $50.66 per barrel, mortgage decisions by the Bank of Canada and the uncertain impact on the Canadian economy with respect to the election of U.S. president Donald Trump.

Need some help sorting out the risks? Give Chris a call #403-680-4479

Trump – Trudeau They Mean Business!

Trump – Trudeau They Mean Business!

Historic Meeting is Good News for Alberta

Let's Be Clear - the trade between the countries is big. There is a flow of exports including 3 million barrels of oil daily to well over 35 USA states. The dollar figure is more than $2 billion in trade on a daily basis that crosses the world's longest undefended border. Many other countries are envious of this gateway to the biggest trading relationship on the planet.

Fears - "Buy American'' Protectionism – Major Threat

The fears are stayed for now. In a joint statement issued yesterday, the two leaders recognized "profound shared economic interests," and pledged to work tirelessly to boost growth and generate jobs in both countries.

Why Trump and Trudeau Both Smiling

The communiqué says the two countries will work to... move forward on the Keystone XL pipeline and commit to establishing pre-clearance operations for cargo crossing the border. "We intend to accelerate the completion of pre-clearance for additional cities and continue to expand this program," it reads. Trump also wants the North Dakota oil pipe line to move forward.

Round-Table Discussion - Emphasis on Support for Women Entrepreneurs

Of note, Trudeau's team "reached out" to propose a joint task force on advancing women in the workplace, a policy dear to the heart of Trump’s daughter Ivanka Trump.

Reading from his notes, Trump said, "[that] women are the primary source of income in 40% of American households," and he added that in order to create good economic growth, our economy should provide jobs and be a place where women can work and thrive.

Trudeau is No Stranger for Support for Women - 50-50 Even

"Because it's 2015," Trudeau made his Cabinet gender-balanced. Trudeau spoke freely about his pleasure at sitting around the table with a number of successful executives who just happen to be women. He emphasized the need to address the unique barriers that entrepreneurial women face, that they, have overcome significant challenges and will have greater insight into how to remove those barriers and be formidable contributors to the success of business and the economy.

A Sigh of Relief for Now

With interest rates still low and the economy picking up it may be time to get your house in order. Ready to buy or sell? Call Chris 403-6804479

http://www.liveinokotoks.com/
email chris@yourhomeinalberta.com

Balloon –Bust or Balanced? Calgary House Prices 2017 Forecat

Balloon –Bust or Balanced?

Calgary House Prices – 2017 Forecast

Predicting house prices for the Calgary area for 2017 is a complex task. The market will definitely go UP this year based on the economy rebounding, higher oil prices, pipeline expansion etc. According to the outlook from the Calgary Real Estate Board there are predictions of an increase but price impacts will vary depending on housing type.

Light Dim but Growing

CREB report states that prices for detached homes are projected to rise by 0.8 per cent. Compared to normal price increases year over year that's low but at least its going the right direction. Some people are taking advantage of the economy. Of note is the $750k-plus price of the market. This area has seen a recent spike in activity. People are moving UP while the prices are still low.

Not a Buyer's Market for Long

Chief economist for CREB, Ann-Marie Lurie said last year was "a buyers' market, for sure" but it will change in 2017. "What we're expecting is we're going to see it gradually shift into more balanced conditions," she said.

CREB president David Brown agrees. He doesn't expect buyers to have their pick of price-reduced properties except for condos. Prices may fall by another 2%. "In the apartment-style condos, you may still see some deals available, but everything else is going to stabilize."

Even More Good News

CREA, Canadian Real Estate Association predictions tell another story. Not all provincial markets should expect price drops in 2017. Home sales will rise in Alberta by as much a 3.5% primarily because the market experienced a slowdown in 2016.

The Balloon Effect

According to a new real estate report released Tuesday, the average price for a resale home in Calgary will balloon to more than half a million dollars by 2017. The average price for all residential property in Calgary did grow if you look at the long range. A 2013 home selling at $431,760 more or less may be as much as $517,016 in 2017.

Why Wait?

If you have been waiting to buy now is the time since we may have hit bottom, while interest rates are still relatively low, inventory is high and some sellers are eager. As the saying goes, "Why not strike, while the iron is hot?"

Why not give Chris a call: 403-680-4479

REAL ESTATE PROFESSIONALS
100, 5810 2 STREET S.W.
CALGARY, AB T2H 0H2
Office: 403-253-5305
Fax: 403-775-5156
E-mail: chris@yourhomeinalberta.com

Website: http://www.YourHomeInAlberta.com