Archive for March, 2019

Federal Budget Programs for first time home buyers – March 2019

Wednesday, March 20th, 2019

Thanks to our Mortgage Broker Bob Alexander for summarizing the announcements made in the Federal Government Budget.  From what I understand this is the high level as all the fine details have yet to come out.  If the Liberals are re-elected in October these are the changes you may see.  In my humble opinion they are not giving anything big – just lending you some money towards your mortgage.

Here is Bob”s Summary

The Federal Government announced several incentives in the new 2019 budget that affect the Canadian housing market. These changes should help with first time home buyers as summarized below:
This announcement of a new CMHC First-Time Home Buyers Incentive Plan represents a shared equity mortgage program that would give eligible first-time home buyers the ability to lower their borrowing costs by sharing the cost of buying a home with CMHC.

The incentive would provide funding (equity sharing) of up to five percent of the purchase price of an existing home, or 10 percent of a newly constructed home. No ongoing monthly payments are required. The buyer would repay the incentive when they sell their home.

For example, if a borrower purchases a $400,000 home with five per cent down and a five per cent CMHC shared equity mortgage ($20,000), the size of the borrower’s insured mortgage would be reduced from $380,000 to $360,000, helping to lower the borrower’s monthly mortgage payment. This would make it easier for Canadians to buy homes they can afford.

The program limits eligibility to households earning a maximum of $120,000 annually, and lets them borrow no more than four times their annual household income. This limits a home purchase to roughly $505,000. This Incentive Plan will be discussed more fully in the next few weeks, but it is not expected to begin until the fall of 2019.

Also of note is an increase in the eligible RRSP withdrawal amount through the Home Buyers’ Plan (HBP). Previously $25,000, this has been increased to a maximum to $35,000.

The budget included a lengthy defense of the current stress tests but does suggest that adjustments may be made in future.

I hope this commentary helps explain these new incentives and if not, please feel free to contact me!
Article courtesy of:
Your Mortgage Doctor
Bob Alexander, B.Comm, CMA, AMP

Phone: 403-875-5270
Email: bob@mortgagedoctors.ca
www.mortgagedoctors.ca

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Just listed Penthouse Condo

Sunday, March 10th, 2019

Located at 411, 345 Rocky Vista Park – 9 minute walk to Ctrain Station

MLS # C4232477

You Tube Video:

You Tube https://youtu.be/DAYUd9FsWNA

Only $260,000

 

Bright open top floor unit in the Pavilions of Rocky Ridge.  Large Windows, Vaulted ceilings and gorgeous city views set this penthouse unit above others.  Exceptional layout with bedrooms on opposite sides for added privacy. Kitchen has been updated with granite, back splash and features eating bar and is open to living room.  Living room features vaulted ceilings, a gas fireplace and access to your deck and extra storage room.  Master Bedroom features a 3-piece ensuite with upgraded granite and back splash, and a large walk in closet.  Second bedroom is a good size.  Includes Titled Parking stall with an additional storage locker in front. The complex features lots of Visitor parking, secure bike storage, Exercise room, Games room, Theater, Salon, Tennis courts and more.   Super location with only a 9-minute walk to Tuscany LRT Station.

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Variable Rate Mortgage Watch March 6, 2019

Friday, March 8th, 2019

No Change to Prime 

The Bank of Canada is opting to hold off on further interest rate increases, at least for now.
While the Bank projected a temporary slowdown at the end of 2018 and into 2019, the slowdown has been much more pronounced than anticipated. According to the Bank, this is because–in addition to the fallout from last year’s drop in oil prices–Canada is also suffering from softer consumer spending, an under performing housing market, and lower-than-expected exports and business investment.

We’re not alone. Countries across the world are dealing with trade tensions, low economic confidence and slow economic activity. As a result, many central banks–including the Bank of Canada–are being forced to acknowledge that global economic growth and financial conditions are a little slower than previously predicted, and the future remains a little uncertain at the moment.

All that being said, core inflation measures remain close to the Bank’s 2% target, while CPI inflation eased to 1.4 per cent in January, but is expected to increase to slightly below the 2% target through most of 2019. With inflation in check, the Bank judges that, for now, the policy interest rate should stay below the neutral range. It will continue to monitor the data to determine the timing of future rate increases.

My advice is to stay with your current existing variable rate mortgage. However, if your existing variable rate discount is Prime less .75% or less, then please contact me for further discussions.

 The date for the Bank of Canada’s next announcement is scheduled for April 24 2019.
This information was provided by one of our Preferred Suppliers – The Mortgage Doctor
To Contact Bob visit www.mortgagedoctors.ca 

 

 

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March 1, 2019 Calgary Real Estate Market Snapshot

Friday, March 1st, 2019

What is really happening in the Calgary Real Estate Market?

Stay ahead of everyone else by following our Monthly Market Snapshot of the Calgary Real Estate Market. This shows what’s really happening! The market is driven by supply and demand so here we show the inventory (supply) and sales (demand) and most importantly the relationship between the two and how it affects the price of Calgary Real Estate.  A simple way to keep up to date with how the market is trending and to stay ahead of most! All numbers are taken from the Calgary Real Estate Boards Stats package for Realtors. I have also included some general comments which are simply my opinion.

Months of Inventory:  If we did not list any more homes this is how many months it would take to deplete inventory.

Months of Inventory/Absorption Rate – the inventory divided by the number of sales in the last month). What does this mean you might ask?

Buyer’s Market >4.0 Drives prices down
Balanced Market Between 2.4 to 4.0 Prices typically remain stable
Seller’s Market <2.4 Drives prices up

 

Current Report:  March 1, 2019

This graph shows the 2 year Trend of the number of months of inventory for a housing sectors.

Graph shows the 2 year trend of months of Inventory of all sectors of homes in the Calgary Market.

Current Months of Inventory: 

In February our months of inventory decreased in every housing sector in Calgary.  Although we are certainly in a Buyer’s market this month all sectors moved toward a more balanced market which in my opinion is a great sign.

End of Jan 2019 Feb 2019 Change
Detached 5.83 5.04 -0.79
Semi Detached 7.64 6.63 -1.01
Attached – Row 7.64 6.98 -0.65
Apartment 9.31 8.73 -0.58
Total City 6.81 6.03 -0.78

 

 Calgary Listing Inventory

In February our months of inventory increased in all categories.  This increase is totally expected as we move further away from the holiday season.

Inventory (End of) Jan 2019 Feb 2019 Change
 Detached 2834 2987 153
Semi Detached 649 689 40
Attached – Row 817 908 91
Apartment 1173 1301 128
Total Calgary 5473 5885 412

 

 Calgary Sales:

Sales for February increased in all sectors compared to January.   Although the increase was not substantial it is good to see a change of direction.

Calgary Sales  Jan 2019 Feb 2019 Change % Change
Detached 486 593 107 22.02%
Semi Detached 85 104 19 22.35%
Attached – Row 107 130 23 21.50%
Apartment 126 149 23 18.25%
Total City 804 976 172 21.39%

 

***Sales Compared to last year***

In Feb our sales were 89.6% of last years sales so a decrease of 10.4%.  This trend in my opinion is expected to continue until our economy and consumer confidence change direction.  I am also starting to see and hear from clients who are getting ready to take advantage of the low prices which may kickstart things a little.

  Jan Feb Mar Apr May June July Aug Sept Oct Nov  Dec
2018 102% 82% 72% 80% 82% 89% 95% 93% 85.9% 89.9% 83.0 78.6
2019 83.8% 89.6%

 

Calgary Real Estate Sales Prices:

February saw a very small decrease in prices in detached and Semi-Detached homes.   Attached (Row) houses and Apartment condos showed a slight gain.  Based on our absorption rate (months of inventory) we can expect prices to continue to trend downward.

  Sales Prices Jan 2018     Benchmark Price  Feb 2019   Benchmark Price Change
Detached 476,500 475,600 -900
Semi Detached 393,100 392,500 -600
Attached – Row 284,300 284,600 300
Apartment 251,300 252,300 1,000
Total City 414,800 414,400 -400

 

 Sales Prices “Year to Date”  

Sales Prices Jan 2019    Benchmark Price  Feb 1, 2019    Benchmark Price Change

$

% Change
Detached 481,400 475,600 -5,800 -1.20%
Semi Detached 397,500 392,500 -5,000 -1.26%
Attached – Row 288,400 284,600 -3,800 -1.32%
Apartment 251,500 252,300 800 0.32%
Total City 418,500 414,400 -4,100 -0.98%

 **Please note that these numbers include only Calgary and do change on a community basis and more so for towns. This report does not include rural properties and does not take into account differences in different price ranges.  If you would like to find stats on your community just let me know.  If you have any questions about this summary or about Real Estate in general, please feel free to contact us.

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