|
|
By Marcus Assalone, on January 26th, 2012
The U.S. Federal Reserve borrowed a play from Bank of Canada governor Mark Carney on Wednesday when they promised to keep interest rates low until at least the end of 2014. This is a good indication that Canadian rates will stay low as well, thus continuing the support of the real estate market here.
In Canada last year, the number of sales increased 2.2% over 2010 and the price of an average Canadian house increased 7.1%! In the GTA, the average house increased 10.8%. Low interest rates will only cause this upward pressure to continue, just as our Bank of Canada has been warning that some real estate markets are overvalued.
This concern that low interest rates are increasing house prices beyond their reasonable value, will force Jim Flaherty, the Canadian finance minister, to make it harder for Canadians to qualify for a mortgage. He may have to reduce the CMHC insured amortization to 25 years or tweak the mortgage qualification in other ways to reduce the amount of new homebuyers.
I have seen clients choose to look for homes outside of Toronto, or even outside of the GTA, even though they work in Toronto because they consider the prices that homes are selling for inflated. However, even on the fringes of the GTA house prices have ballooned to the same as they are here in Toronto. A big drawback is the increased commute and plus out there you don’t get all the amenities like public transportation and availability of shopping like you would in Toronto. Is there a winner in this situation?
The U.S. Fed also said they are considering printing more U.S. dollars, so expect the Canadian Dollar to raise above parity once again. This will once again allow Canadians to take some of the equity out of their homes and purchase retirement homes in the sun. Places like Arizona, Texas and the Mayan Riviera are sure to benefit.
By Marcus Assalone, on January 14th, 2012
I really hate the cold, I promised myself that one day I will start spending the winters in a tropical place. If you are I like me, I would like to share with you a development that can help us realize this great goal.
I really like Mexico, my dollar goes really far there, and whenever I visit, I feel [...]
By Marcus Assalone, on December 19th, 2011
Wood is a large component of Canadian homes. The frame of your house is most certainly wood, and wood is used in many finishes as well. Wood can be found in flooring, baseboards, crown moulding, doorways, trim, cabinets, and even the furniture of a home. As a homeowner many of the activities you will perform [...]
By CMHC SCHL, on December 14th, 2011
CMHC is pleased to introduce two new tools designed to provide you with flexible and convenient ways to access comprehensive CMHC information anytime, anywhere.
The CMHC Mobile Kit for Mortgage Professionals
Whether you are in the office or on-the-go, the new CMHC Mobile KIT provides quick and convenient access to tools and resources relevant to today’s busy mortgage professional. [...]
By Isabella Woods, on December 4th, 2011
The UK housing market has seen some turbulent times over the last few years. Since the economic crisis that saw the UK Government bail out the banking industry, year-on-year house prices around the country have plummeted, with the exception being the nation’s capital. UK property is, and has always been, two different markets. According to [...]
By Isabella Woods, on November 29th, 2011
As any DIY enthusiast knows, it’s always great when your hard work pays off and your neighbours start complimenting you on your excellent home renovations. However, it’s even better when your work starts to actually increase the overall value of your home, too. So when it comes to deciding what DIY improvements to make, read [...]
By CMHC SCHL, on November 23rd, 2011
Tips to Help You Save Time and Money
Everyone has a different reason for wanting to renovate their home. Some may be looking to make a change in the way their home looks or feels while others may want to fix a maintenance issue or make their homes more comfortable or energy-efficient. Whatever your reason, undertaking [...]
By Marcus Assalone, on November 21st, 2011
When you are painting, spend the extra money and buy good paints. The money you invest will save you time in having to put additional coats to the walls. If you are not sure if the paint is a good brand, ask friends about what brands have worked well for them. If you have heard [...]
By Marcus Assalone, on November 18th, 2011
A new survey from Coldwell Banker Real Estate finds that 87 percent of 1,300 agents and brokers polled agree that the economy is delaying baby boomers’ plans to sell their homes. That said, the desire to purchase and own a home, or more than one home, remains strong in this demographic cohort, especially so in [...]
By CMHC SCHL, on November 16th, 2011
CMHC Offers Range of Tips and Resources
Buying a home is one of the biggest financial decisions you will make. Canada Mortgage and Housing Corporation (CMHC) offers a variety of publications, calculators and tools to help you make informed and responsible homebuying decisions.
To assist you in making choices you can be comfortable with into the future, [...]
|
|
