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Real Estate in Calgary

December, 2009

 

Merry Christmas


In this issue:  

 

Calgary Real Estate Board (CREB®) Update

CALGARY’S HOUSING RECOVERY HAS STAYING POWER

Low borrowing costs continue to fuel market recovery
Calgary, December 1, 2009 – The Calgary housing market is showing signs of a sustained recovery according to figures released today by the Calgary Real Estate Board (CREB®).

The number of single family homes sold in November 2009 in the city of Calgary were up 63 per cent from the same time a year ago, while condominium sales saw an even steeper increase—up 77 per cent from the same time a year ago.....   [Read More]

 

MLS® Statistics

From the Alberta Real Estate Association

Real estate transactions make a major contribution to Alberta's economy.

Here are just a few statistics compiled by AREA from data supplied by its member boards.

These statistics are intended as general information only.

Residential Units Sold

Note: Two real estate boards out of 11 (Fort McMurray and Grande Prairie) exclude condominium and mobile home properties from their definition of residential units sold.

September 2009 August 2009
Number of Units 6140 5259
Total Sales Volume $1,765,002,916 $1,813,416,449


  • September 2009 residential units show an increase of 3% when compared to September 2008.
  • A total of 45,647 residential units have been sold province-wide from January to the end of September.

Value of Property Sales

  • The value of total property sales for the year ending September 2009 is $16,905,728,730 (down 0.1% from the same period last year).
  • Residential properties represent 90% ($15,156,293,111 of total property sales for the year ending September 2009).

Understand Your Mortgage Before Signing

by Marty Hope, Calgary Herald

Talk about mortgage rates and the first topic that comes to mind is the current state of those rates.

We're in uncharted territory right now. Rates have never been this low and this generation of homebuyers is reaping the benefits. So, too, are those renegotiating mortgages.

According to a report by the Canadian Association of Accredited Mortgage Professionals, borrowers who have renewed or refinanced a mortgage in the past year are now paying interest rates that are nearly a point lower than their previous rate.

Sure the cost of borrowing money is important but according to Toronto-based mortgage broker, there's a lot more to consider.

"Rates are just the tip of the iceberg," says Mary Gronkowski, a regional sales director for the brokerage firm.

She says some low-rate mortgages offer limited flexibility.

So-called "no frills" mortgages might offer appealing rates, but might also limit the ability to pay off the mortgage sooner.

Then there are the "quick close" types of mortgages, again offered at attractive rates, but they might want a closing date within 30 days --something that, again, limits flexibility for both home buyers and sellers.

It's important, says Gronkowski, that everything about the mortgage being considered should fit the homebuyer's current and future personal goals. And because a mortgage will probably be the largest debt most of us will ever take on, borrowers should take the time to understand what they are signing.

So, here she offers five tips for consideration.

  • Consider an assumable mortgage. A few years from now when you decide to sell your home, your low-rate mortgage could provide an extra selling point. If your mortgage is assumable, meaning it can be transferred to another borrower, it allows the purchaser to take on your mortgage's terms and payments as part of the sale. This can be an attractive incentive, particularly in a higher rate environment.
  • Review refinancing penalties. Given the low rates available today, many homeowners are weighing the benefits of refinancing. When choosing a mortgage, keep in mind that penalties are often the equivalent of three months' mortgage payments, or based on an interest rate differential, which is the difference between your current rate and the new rate. If you consider refinancing, a mortgage broker can help you decide whether the long-term savings outweigh the upfront penalties.
  • Evaluate pre-payment options. Many borrowers are taking advantage of low interest rates by accelerating payments on their mortgages. For example, many lenders allow you to double up payments periodically, or make lump-sum payments of up to 20 per cent of the principal once a year. When negotiating your mortgage, make sure you understand the size and frequency of payments your lender allows.
  • Review skip-a-payment options. Some lenders offer an option to skip a payment without penalty, which may come in handy in today's economy.
  • Consider portability. Many mortgages have a portability feature that allows you to transfer your existing mortgage over to a new property, but not all portability terms are the same. Some lenders allow 120 days to transfer the mortgage, but others only allow for a few days or a week.
"Choosing the right mortgage involves considering where you are now, and where you may be three to five years from now," says Gronkowski. "Working with a professional can help you make sense of the many options available to you."

Christmas on the Internet

Not surprisingly, the internet is a great resource for anything Christmas related... but then it's an excellent resource for almost anything.

Here, we've compiled a short list of the best links from some of our favourite sources:

Christmas E-Cards: From About.com, 46 favourite Christmas Ecard sites.

Chidren's Christmas: From Socyberty.com, 10 favourite children's Christmas websites.

Christmas Games: From AssociatedContent.com, Top 10 free Christmas computer games sites.

General Christmas: From TechDigest.com, Top 50 Christmas Websites

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