COMPARATIVE DATA

Calgary MLS sales in 2011 top 2010: CREB
Eight per cent hike year over year
By Mario Toneguzzi
Calgary Herald January 3, 2012

CALGARY - Calgary residential MLS sales in 2011 increased by eight per cent over the previous year, says the Calgary Real Estate Board.

In releasing its December data on Tuesday, CREB said total sales reached 18,568 for 2011 compared with 17,267 in 2010.

“Recovering from tepid sales activity in the first half of 2011, early improvements in employment and migration resulted in a pickup in housing demand in the second half of the year,” said the board in a news release. “By the end of June 2011, year-to-date sales activity had only increased by two per cent compared to the second half of the year, where residential sales improved by 15 per cent.”

Sano Stante, president of CREB, said sales activity remained 17 per cent below the long-run average but monthly figures point toward the trend of this gap narrowing.

In the single-family home market, there were 13,186 sales in 2011, a nine per cent increase over the previous year.

Meanwhile, the condominium market recorded declining sales for nearly half of the year, but favourable pricing and improved economic conditions pushed sales up by double-digit rates for the second half of the year, said CREB.

Condo sales totalled 5,382 in 2011, a four per cent increase over the previous year.

“The demand recovery in the condominium market lagged the single-family market, as price adjustments in both the single-family and condominium markets resulted in more selection for consumers,” said Stante. “For the first time in several years, consumers had additional selection of single-family homes at a lower price range, which directly competed with the condominium market.”

The single-family average price in 2011 reached $466,402, a one per cent increase over the previous year. The average price for condos of $287,172 remained one per cent lower than the previous year.

“Throughout 2011, elevated levels of inventories have limited price growth as consumers benefited from sufficient supply of housing to choose from. However, as these inventories drop to levels more consistent with a balanced market, we can expect some moderate price growth moving forward,” said Stante.

LISTEN UP! CALGARY STAMPEDE

Coca-Cola Stage Announces 2010 Stampede Line-Up!
Check it out below and see you there! Click on your performer of choice to find out the time.

July 8, 2010

Terry Stokes

Down With Webster

July 9, 2010

The Heebee-jeebees
Terry Stokes
Theory of a Deadman

July 10, 2010

Thomas and Friends
Terry Stokes
OK Go

July 11, 2010

Thomas and Friends
Terry Stokes
Barenaked Ladies

July 12, 2010

Terry Stokes
Stereos
Faber Drive
Marianas Trench

July 13, 2010

Fifi and the Flowertots
Terry Stokes
Three Days Grace

July 14, 2010

Fifi and the Flowertots
Terry Stokes
Loverboy
Glass Tiger

July 15, 2010

Bob the Builder
Terry Stokes
Raul Malo
Doc Walker

July 16, 2010

Bob the Builder
Terry Stokes
OneRepublic

July 17, 2010

The Heebee-jeebees
Terry Stokes
Crash Karma
Default

July 18, 2010

The Heebee-jeebees
Terry Stokes
Martina McBride

TIK TOK TO RATE HIKE

Clock ticking for interest rate hikes
Garry Marr, Financial Post
Published: Friday, February 12, 2010

It's probably time to start the countdown on interest rates going up.

The Bank of Canada only pledged -- conditionally -- to keep its record-low lending rate until the end of the second quarter, so that leaves us with slightly more than four months before the housing market falls apart. At least that's what some national magazines and economists predict will happen when rates start to rise.

"Some people say they could go up in April, but I don't buy that," says Benjamin Tal, senior economist with CIBC World Markets and one of the more sane voices out there. He predicts a pullback in housing, but not the collapse we've seen in the United States.

So, what do you do in the face of this inevitable march of interest-rate hikes coming our way, likely at the Bank of Canada's first meeting in July?

"I think people will start locking in their rates very soon and that's already happening," says Mr. Tal, referring to the variable-rate crowd that has mortgages tied to prime. "The five-year [fixed] rate [mortgage] will be moving [up] well ahead of the bank rate in anticipation of an increase."

While locking in is extremely tempting in this market -- given a five-year mortgage is as low as 3.8% -- a floating-rate mortgage can be had for almost half that. Vince Gaetano, a vice-president of Monster Mortgage, said he's seeing variable rates for as low 30 points off prime, or 1.95%.

The problem for many Canadians who negotiated variable-rate mortgages in the past year, and still don't want to lock in, is they are stuck in contracts that have them paying a rate as much as 100 basis points (one percentage point) above prime. The reason they call it a five-year term is because that's the length of the contract.

But Mr. Gaetano says just break that mortgage. If you are in a variable-rate contract, the penalty is three payments. To go from a contract that is 100 basis points above prime to one that is 30 points below, could have you recoup your money in less than a year.

"There is a large amount of people refinancing to take advantage of these variable rates. We've seen a full-point comeback in the borrower's favour. We'll never see 1.95% ever again," says Mr. Gaetano.

One option for consumers who can't make up their minds is to apply to the bank for a new mortgage and have the financial institution hold the rate for as much 120 days.

"There will be a credit bureau check on your name and it could lower your credit score if you don't use money," says Mr. Gaetano, referring to the potential pitfalls of looking elsewhere for a new rate.

The reality is most consumers, once they have their mortgage, stay put and wait for renewal. The banks have a loyalty record that would make any industry drool. According to the Canadian Association of Accredited Mortgage Professionals, 93% of borrowers who renew on schedule stay with the same lender. Even among those who renew early, 81% stay with same financial institution.

As you consider where to go next with your mortgage, you should remain open to switching financial institutions if it saves you money. Sometimes there are costs, but the potential savings from a better rate can offset those costs.

Martin Beaudry, vice-president of ING Direct Canada, says his company will now hold your rate for 120 days by just applying online. You don't even need to fill out a full mortgage application. ING holds the rate on any term, or even the spread between a variable-rate and prime, which is now 20 basis points.

"There is no downside, but less than half of people take advantage of rate guarantees. People deal with renewals less than 30 days before the maturity date," says Mr. Beaudry.

Most banks will guarantee you a rate 90 days in advance of your mortgage coming due. Why wait until the last minute and why stay with same institution if you are not getting best rate going?

Dusty wallet Having trouble making ends meets because of property taxes? If you are a senior citizen, some jurisdictions will allow you to forgo the payments with the amount owing attached as a lien on the house. Make sure to check the interest rate they charge on that money owed or your heirs could be left with a lot less house -- if you care about that.

Photo by: Magda.Indigo

THE BREAKDOWN

Breakdown of CREA's residential market forecasts
Posted: February 08, 2010, 2:36 PM

by Damien Lynch
The Canadian Real Estate Association on Monday revised its forecast for home sales via the MLS Systems of Canadian real estate boards in 2010, and extended the forecast to 2011.

Here is a breakdown on CREA's residential market forecast for unit sales and average prices: