Canadians continued to snap up housing in August, with home sales up 2.8 per cent from July and up 11.1 per cent from the previous year.

The Canadian Real Estate Association says the recent rise in mortgage rates caused people who already had mortgage approvals from their lenders to move their decisions forward.

Mortgage rates rose 0.2 percentage points the week of August 22, but many prospective buyers locked in rates with their banks, and the impact of higher rates is not expected to be felt until later in the fall.

The August numbers also seem high by comparison with a year ago because sales activity had dropped sharply last summer after Ottawa tightened mortgage rules.

That tightening dampened enthusiasm to buy homes last fall, but by the spring, Canadians were again shopping for housing.

Sales rose sharply in most major cities and especially Vancouver Island, Victoria, Greater Vancouver, the Fraser Valley, Calgary, Edmonton and Greater Toronto.

Prices down in Fraser Valley, Ottawa, Kitchener-Waterloo

The average price of a home was up 8.1 per cent at $378,369, with price rises in Toronto and Vancouver driving most of the increase. The average price of a Vancouver house was $775,811 and in Toronto, it was $523,228.

Average prices dropped in the Fraser Valley, Ottawa-Gatineau and Kitchener-Waterloo, Ont.

CREA doesn’t expect the strong numbers will last this fall.

“That pool of homebuyers [who had locked in mortgage rates] has largely evaporated, so demand may soften over the fourth quarter,” said CREA chief economist Gregory Klump.

The big year-over-year gains will persist because sales were so weak in fall of 2012, he said.

Around 325,180 homes traded hands across the country so far this year. That is 2.9 per cent below levels recorded last year and overall sales are expected to stay below 2012 levels.

Source: CBC.ca/news

By: The Canadian Press, Published on Fri Jun 28 2013

Mortgage rates are on the rise. If you have been thinking about buying you might want to do sooner than later.

We’re seeing most all lenders now up to the 3.19% 5yr fixed term rates or higher on pre-approvals.   The bond markets are still showing signs of movement, so it could go up a bit from here.  If you are thinking of purchasing, refinancing, or renewing within the next 90-120 we encourage you to do a pre-approval and get a rate hold locked in through us.

If you are seeking an approval on your purchase, refinance, or renewal, then there are a couple non-preapproval lenders that can offer a slightly lower rate on approvals only.  Also, if your financing closes or can close in 30 days or less you can obtain a quick close discount closer to the 2.99% range right now.

If you are thinking about buying a home within the next 4 months you should call in to get pre-approved to lock in today’s interest rates.

For more information call Chita at 780-932-2225 or visit: http://www.edmontonmortgagesource.com/

Edmonton, May 2, 2013: With the a later than expected arrival of spring, average prices for housing in the Edmonton Census Metropolitan Area (CMA) decreased month-over-month in April after a surprising uptick in March. The REALTORS® Association of Edmonton reports that the all-residential price (including single family detached, condominiums, duplexes and row-houses) decreased 1.8% over March to $348,535. Compared to April 2012, the all-residential price was up 2.0%.

“The second quarter is the most active time of year for real estate sales,” said President Darrell Cook. “Both buyers and sellers want to complete the transaction before school starts in September and get settled into the new neighbourhood.” About 33% of annual sales happen in April, May, and June, while 25% occur in Q3 and 19% in the last three months of the year. In April, there were an estimated 1,645 (1,523 actual) total residential property sales through the Edmonton Multiple Listing Service® as compared to 1,656 (actual) in April 2012.

Estimated SFD sales of 1,037 units (960 actual) were down 4.4% from last year but condominium sales increased 4.1% year-over-year to 459 estimated sales (425 actual). There were 118 estimated sales of duplex/rowhouse properties (109 actual) in April (up 15.4% y/y). Sales numbers are estimated to account for late reported sales and provide meaningful comparison to previous year actual sales.

Market activity picked up in April according to both market activity indicators. The sales-to-listing ratio was up at 55% in April while days-on-market was down from 50 in March to 49 in April. Inventory continues to be relatively low with 5,294 residential properties of all types available on the MLS® System at the end of April. There were 2,769 residential properties listed for sale in April (up just 0.5% from April, 2012). “As many as 100 additional homes are listed everyday so motivated buyers need to maintain contact with their REALTOR® to ensure that they are notified the moment that a suitable property becomes available,” said Cook.

In April, the average price for a single family detached home was $402,270 (down 3.5% from March). The average priced condo sold for $243,503 (down 1.3% m/m) and duplex and rowhouses prices were up 2.8% to $324,975 on average. It is important to note that the average price encompasses all properties and can be driven upward by a higher than average number of expensive sales in any given month.  Contact your REALTOR® to get an accurate evaluation of your home.

Source: Realtors Association of Edmonton

The average housing prices quoted by the Board are influenced by two factors. If the prices paid on particular properties are rising then it will push up the average price. But if the actual prices are constant, the average could still increase because of the product mix in the period.

Right now there is a shortage of attractive, lower priced homes in this market because the low interest rates and increased migration have created a demand for housing for entry level buyers. Existing home owners are also taking advantage of the lower interest rates and the equity gain since 2006 and are buying in more expensive neighbourhoods. With less homes sold at the low end, the average price is pushed up as current owners move up-market to find a home. The relative number of homes sold in the $450 – 650k price range increased from 12.2% to 14.5% year-over-year while the percentage of homes under $300,000 dropped from 40.7% of the market to 38.2%.

It is important that REALTORS® explain this phenomenon to their sellers so that they don’t have unrealistic pricing expectations. The increase in average price may not increase the market value of a particular property. Just because the market is rising, does not mean that buyers will pay more than the market price in a given neighbourhood for a home. The CMA will reveal if prices for comparable homes are rising with the market or are showing a more moderate rate of increase.

Source: Realtors Association of Edmonton

Edmonton is the second-best market in the country to invest in housing, says real estate analyst Don Campbell.
“Population growth is strong, job growth is strong and things are supporting this market quite nicely, said Campbell, founding partner of the Real Estate Investment Network, a business that provides resources and information on real estate to members.
“It doesn’t look like it’s going to be another ‘07 where it just got into pure frenzy, but I think you’ll see late this year and early 2014 — which is a year behind Calgary as always — that the market will really start to push up.”
Home-buying demand will start taking off late this year while prices will begin rising next spring, Campbell says.
He bases that prediction on a formula where demand and prices come about 18 months after increased rents, which in turn follow decreased vacancies, increased demand for rental housing and growing population. All of those are triggered by earlier economic and job growth.

“We’re going to see a lot of listings come on during this year as well,” Campbell said, noting a current undersupply of listings.
Investors who bought too many properties in 2007, 2008 and 2009 will see the increased buying demand as a chance to sell, he said.
“The market’s barely moved in Edmonton as far as value. It’s a good window of opportunity before it starts to heat up again to get into the market. From an investment point of view, your rents are going up.”
He said when suites go vacant, landlords will raise rents by $150 to $200 per month.
“That will make renters think twice about renting rather than buying and that will happen over the next 12 or 18 months.”
Edmonton is second only to Calgary as the best place to invest in Canada in residential real estate. Campbell rates Hamilton as third because of its diversifying economy and job growth. Campbell was in Edmonton to promote his latest book The Little Book of Real Estate Investing in Canada. Royalties from the book go to Habitat for Humanity.

By Bill Mah, Edmonton Journal
© Copyright The Edmonton Journal

CALGARY — Members of Generation Y strongly desire a house of their own but they’re pessimistic about their ability to do so, according to a new Royal LePage Real Estate survey released on Wednesday.

The survey, which was conducted by Leger Marketing, said 80.9 per cent of the Generation Y (born between 1980 and 1994) respondents said they have plans to move to another primary residence at some point in the future with 39 per cent stating a move is planned within the next two years.

However, the majority of the young generation feel pessimistic about their ability to own a home because of current house price affordability as 44.2 per cent ‘somewhat agree’ with this feeling and 28.3 per cent ‘strongly agree’.

“While Generation Y is more likely to rent their primary residence at this stage in their lives, they do not see this as desirable long-term solution,” said the real estate firm. “An overwhelming 85.7 per cent disagreed with the statement that ‘I do not desire to own a property in my lifetime as renting is preferable to me’.”

Of those who are planning a move, 55.1 per cent of Generation Y intend to purchase their next primary residence while 32.6 per cent plan to rent.

mtoneguzzi@calgaryherald.com

Twitter.com/MTone123
Source: MARIO TONEGUZZI, CALGARY HERALD MARCH 20, 2013