I will keep you posted as soon as the data for June is in!
New Mortgage Rules starting Jan. 2018
Starting January 1st, 2018 all mortgages will be required to qualify at the posted 5 year rate, or at this time approximately 4.89%. Currently mortgages with 20% or more can qualify at the regular 5 year rate of approximately 3%. The difference can reduce mortgage amounts by approximately 20%.
If you are interested in buying and have not been pre-approved for the new stress test, now might be the time to do so to find out, what the difference would be for you and if you should make a move before the deadline at the end of this year.
Below is a link to the government's website detailing the changes. Feel free to call or email if you have any questions or concerns!
The Canmore Real Estate Market – Past, Present and Future
The decline of the price of crude oil which started internationally in August 2014 had a huge influence on the economy of Alberta and Calgary. While the price was previously at around $100US / barrel crude oil, the price dropped to its lowest at around $30 in February 2016 and has since started to recover to around $54 US in Dec. 2016.
Alberta’s economy which depends heavily on the oil industry has been hit with unemployment which lead to a negative net migration. People previously employed in the oil industry left Alberta and went back to their home provinces. The spending budget of many of those who stayed decreased sharply.
This development was also reflected in the Real Estate Market. With a lot of properties coming on the market but less people to look for properties, the Sales Volume in Calgary declined in Nov. 2016 by 3% year over year and was down by 17% when compared to long-term averages. Sales Prices decreased...
Beginning in February, insurers will require a 10% down payment on the portion of any mortgage over $500,000. The five per cent rule remains the same for the portion under $500,000. This means that someone looking to buy a $750,000 home would need to have a total minimum downpayment of $50,000 (which is five per cent of $500,000 plus 10 per cent of the remaining $250,000).
Five things to watch after the Bank of Canada's latest rate cut
The decision that practically gripped the nation came down this morning, as Bank of Canada Governor Stephen Poloz decided to cut interest rates once more. The first of his cuts came more abruptly when in January of this year, the BoC shaved 25 basis points off what was thought to be a stable 1 per cent; it was the first rate cut since April, 2009, and was a direct response to the steep drop in oil prices.
Wednesday's rate cut to 0.5 per cent was less of a surprise as the economy has not rebounded as the central bank expected. Now, not only did the BoC cut its rates, but it dramatically lowered its growth projections for the rest of the year.
Below are five things to watch out for after the interest rate cut.
How will the banks react?
The question now is whether the banks will follow suit and cut their own prime rates in response to the rate cut - and by how much. Toronto-Dominion Bank was the...
Canmore Real Estate Market, June 1st 2015
Canmore had 145 closed deals from January to May 2015 as compared to 207 in the same period in 2014. That is a 30% reduction in closed deals compared to last year.
The number of listings on the other hand increased from around 200 in January to 264 in June which is more than we saw during the year 2014.
While the average sales price of apartments was $399,000 in 2014, the average sales price from Jan-May 2015 was $369,000. Remarkable however, that the average price in 2015 increased constantly from 315,000 in January to 433,000 in May. Days on market reduced from 76 in 2014 to 56 in 2015. There is obviously a strong demand with very little supply for lower priced apartments and this drives prices for this kind of product.
While the average sales price of vacation properties was $214,000 in 2014, the average sales price from Jan-May 2015 was $218,000. Remarkable here that the average sales price decreased from March 2015 to May 2015. Days on...