A Canadian study on family finances says the average household debt has climbed to $96,000 in 2009.
The number of mortgage payments that were at least 90 days late was up 50 per cent compared with 2008. There was also a 40 per cent increase in the number of credit card holders who were at least three months behind in their payments.
The finance minister has announced changes to the home buying process in an attempt to bring this personal debt down. With low interest rates, people have been over extending themselves to get into the housing market. This has left many Canadians house poor and living off credit. As a result, many are unable to afford their mortgage payments along with their escalating credit card bills.
Thursday, February 18, 2010
Thursday, February 11, 2010
Thinking about buying or selling in 2010? - Maybe I can help!
We are now full steam into 2010 and many people are beginning to think about buying or selling real estate. As you are making your plans, please consider the following points.
1. Interest rates are on the rise
Home buying has continued its hot streak from 2009 into 2010. Interest rates remain low and continue to pull buyers into the market. The threat of rising interest rates in July will have people rushing to get into new homes before the rates start to move.
2. HST will be introduced this July
While the tax will hit those who buy newly constructed houses hardest, it will also add to the costs of buying an existing home. Many buyers are trying to get their transactions completed before the new tax arrives this July.
3. Choose whether to sell first or buy
If you are selling a property that will move quickly, it is advisable to buy your new home first and then sell once you have found ‘Your Dream Home”. You don’t want to be forced into buying a property just because you don’t have a property to live in anymore. Follow what is happening in your area to see if homes are staying on the market for a long time or if the sold sign goes up the same day it is listed. Knowing how quickly your current home will sell is the best indicator of whether you should buy or sell first.
4. Abundant Spring Listings
Last spring signalled the end of the brief housing down turn that hit Canadian real estate. Although the market was on the rise, many were still sceptical and decided to hold off selling. Now that the market is strong and stories of multiple offers are passed around, sellers are seeing this spring as the time to jump back into the market.
The injection of housing supply will help alleviate the upward pressure on prices and give buyers more selection to choose from. Hopefully this surge of housing supply will prevent housing prices from going through the roof and bring an equilibrium to the real estate market.
5. Is it worth it to rush?
There are different schools of thought as to when to buy this year. Many feel it is best to jump in before the extra tax hits and rising interest rates. But wait...if everyone is rushing to avoid that, won’t that affect prices? Of course it will. You will have to weigh the benefits jumping in early versus waiting until the feeding frenzy has subsided. A client of mine just lost out on a house because their offer was only one of nine submitted. The home ended up going for $61,000 over list price! The question then becomes, will the tax and slight rise in interest rates be worth getting into a bidding war over? Some feel it is best to wait until the action has cooled and buy a home, with the extra costs, at fair market value.
There is a lot to think about when buying or selling a home. For a free, no-obligation chat about your real estate options, please call me at 905-220-9198 or visit my websites www.seankavanagh.ca OR www.seansells.ca.
1. Interest rates are on the rise
Home buying has continued its hot streak from 2009 into 2010. Interest rates remain low and continue to pull buyers into the market. The threat of rising interest rates in July will have people rushing to get into new homes before the rates start to move.
2. HST will be introduced this July
While the tax will hit those who buy newly constructed houses hardest, it will also add to the costs of buying an existing home. Many buyers are trying to get their transactions completed before the new tax arrives this July.
3. Choose whether to sell first or buy
If you are selling a property that will move quickly, it is advisable to buy your new home first and then sell once you have found ‘Your Dream Home”. You don’t want to be forced into buying a property just because you don’t have a property to live in anymore. Follow what is happening in your area to see if homes are staying on the market for a long time or if the sold sign goes up the same day it is listed. Knowing how quickly your current home will sell is the best indicator of whether you should buy or sell first.
4. Abundant Spring Listings
Last spring signalled the end of the brief housing down turn that hit Canadian real estate. Although the market was on the rise, many were still sceptical and decided to hold off selling. Now that the market is strong and stories of multiple offers are passed around, sellers are seeing this spring as the time to jump back into the market.
The injection of housing supply will help alleviate the upward pressure on prices and give buyers more selection to choose from. Hopefully this surge of housing supply will prevent housing prices from going through the roof and bring an equilibrium to the real estate market.
5. Is it worth it to rush?
There are different schools of thought as to when to buy this year. Many feel it is best to jump in before the extra tax hits and rising interest rates. But wait...if everyone is rushing to avoid that, won’t that affect prices? Of course it will. You will have to weigh the benefits jumping in early versus waiting until the feeding frenzy has subsided. A client of mine just lost out on a house because their offer was only one of nine submitted. The home ended up going for $61,000 over list price! The question then becomes, will the tax and slight rise in interest rates be worth getting into a bidding war over? Some feel it is best to wait until the action has cooled and buy a home, with the extra costs, at fair market value.
There is a lot to think about when buying or selling a home. For a free, no-obligation chat about your real estate options, please call me at 905-220-9198 or visit my websites www.seankavanagh.ca OR www.seansells.ca.
Friday, January 22, 2010
2009: A Record Year for Real Estate
Last year ended stronger than expected for Canadian real estate and shed some hope for the industry and the Canadian economy as a whole. Many in the real estate industry predicted that 2009 would continue to post a decline in both units sold and average prices. MLS sales for 2009, however, were reported at approximately 465,000 which represents a 7% increase over 2008 and the average housing price was listed at $315,000 representing a 4% increase. This may seem small, but it is not insignificant. Coming out of this global economic downturn, Canada has posted the highest average housing prices of any country in the developed world!
This drastic turnaround can be attributed to buyers regaining confidence in the market, low lending rates, the anticipation that those rates may soon start to rise, as well as the number of government incentives that have been offered to buyers to bring them back to the marketplace. Now with the HST set for a July launch, many buyers also are hoping to get in early to avoid that extra expense. This strong demand for housing with relatively small supply has kept an upward pressure on prices resulting in the strongest seller’s market since 2002.
If you wonder when the supply/demand will begin to shift again, look no further than the interest rates. With prices remaining high and interest rates on the rise, we will inevitably begin to see a reduced affordability in housing and an eventual cooling of this seller’s market.
For more information on market conditions as we prepare for the spring market, please follow me on twitter or facebook or give me a call at 905-220-9198.
This drastic turnaround can be attributed to buyers regaining confidence in the market, low lending rates, the anticipation that those rates may soon start to rise, as well as the number of government incentives that have been offered to buyers to bring them back to the marketplace. Now with the HST set for a July launch, many buyers also are hoping to get in early to avoid that extra expense. This strong demand for housing with relatively small supply has kept an upward pressure on prices resulting in the strongest seller’s market since 2002.
If you wonder when the supply/demand will begin to shift again, look no further than the interest rates. With prices remaining high and interest rates on the rise, we will inevitably begin to see a reduced affordability in housing and an eventual cooling of this seller’s market.
For more information on market conditions as we prepare for the spring market, please follow me on twitter or facebook or give me a call at 905-220-9198.
Canadian Real Estate Continues to Recover
Exceptionally low interest rates, government incentives (rebates, tax breaks and RRSP contributions), the looming HST and a renewed consumer confidence puts Canada as the world leader when it comes to the recovery of the global real estate market.
In a recent report on Global Real Estate Trends written by Adrienne Warren of Scotiabank, Canada is leading the way in the global real estate recovery with positive growth in housing starts, housing sales and average prices. Prices in Canada remain strong due to the increased demand for housing, coupled with low levels of housing inventory. First time buyers are out in full force keeping the demand high, but those in a position to move up the property ladder are deciding to hold contributing to an imbalance in supply and demand.
Many sellers may be waiting until the spring to list their homes in hopes of an increase in sale prices when more buyers come to the market. With the HST being introduced in July and rising interest rates, it is unclear if the demand will remain at these levels.
For more information on market conditions as we prepare for the spring market, please follow me on twitter or facebook or give me a call at 905-220-9198.
In a recent report on Global Real Estate Trends written by Adrienne Warren of Scotiabank, Canada is leading the way in the global real estate recovery with positive growth in housing starts, housing sales and average prices. Prices in Canada remain strong due to the increased demand for housing, coupled with low levels of housing inventory. First time buyers are out in full force keeping the demand high, but those in a position to move up the property ladder are deciding to hold contributing to an imbalance in supply and demand.
Many sellers may be waiting until the spring to list their homes in hopes of an increase in sale prices when more buyers come to the market. With the HST being introduced in July and rising interest rates, it is unclear if the demand will remain at these levels.
For more information on market conditions as we prepare for the spring market, please follow me on twitter or facebook or give me a call at 905-220-9198.
Thursday, January 14, 2010
Ontario Housing Market Will Stay Strong in 2010
Canada and more specifically Ontario appears to have avoided any lasting impact from the collapse of the US housing market and the subprime mortgage market meltdown. What we have seen over the past 18 months was fear versus demand and fair market values relative to the true economic environment in Ontario. From the price stability we have seen, I would say we are on great footing going forward.
The rational for Ontario home price appreciation in 2010 is as follows:
Ontario home prices are fairly valued. Despite a healthy appreciation in home prices in Ontario between 2001-2009 we have avoided the huge run ups (and drops) in prices seen in Alberta and British Columbia.
Ontario’s housing supply appears to be inline or undersupplied versus the demand.
The unemployment rate in Ontario rose sharply as a result of the US economic collapse. However, it has since started to slowly decline. The unemployment rate currently sits around 8.5%, it averaged around 6.2% during the 36 months of 2006-2008.
Ontario continues to have a net gain in population growth. It is estimated that the population of Ontario will grow between 6% and 10% over the next 21 years. This will have a longer lasting and direct impact on both the demand for housing as well as the economic activity in the area.
Improving consumer confidence and record low interest rates are bound to have a positive impact on the spring 2010 housing market. The spring housing market may even be exaggerated by the Bank of Canada’s signalling of their intention to raise interest rates in June and the introduction of the HST on new home purchases in July.
Where prices go beyond the summer of 2010 will really depend on how much and how quickly the bank of Canada intends on raising rates.
For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seankavanagh.ca I'd be happy to answer any questions to accommodate all of your real estate needs. Follow me on TWITTER or FACEBOOK! You can also contact me at 905-220-9198.
I look forward to hearing from you!
Sean Kavanagh
Building Lasting Relationships and Exceeding Expectations
Source - USPRWire
The rational for Ontario home price appreciation in 2010 is as follows:
Ontario home prices are fairly valued. Despite a healthy appreciation in home prices in Ontario between 2001-2009 we have avoided the huge run ups (and drops) in prices seen in Alberta and British Columbia.
Ontario’s housing supply appears to be inline or undersupplied versus the demand.
The unemployment rate in Ontario rose sharply as a result of the US economic collapse. However, it has since started to slowly decline. The unemployment rate currently sits around 8.5%, it averaged around 6.2% during the 36 months of 2006-2008.
Ontario continues to have a net gain in population growth. It is estimated that the population of Ontario will grow between 6% and 10% over the next 21 years. This will have a longer lasting and direct impact on both the demand for housing as well as the economic activity in the area.
Improving consumer confidence and record low interest rates are bound to have a positive impact on the spring 2010 housing market. The spring housing market may even be exaggerated by the Bank of Canada’s signalling of their intention to raise interest rates in June and the introduction of the HST on new home purchases in July.
Where prices go beyond the summer of 2010 will really depend on how much and how quickly the bank of Canada intends on raising rates.
For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seankavanagh.ca I'd be happy to answer any questions to accommodate all of your real estate needs. Follow me on TWITTER or FACEBOOK! You can also contact me at 905-220-9198.
I look forward to hearing from you!
Sean Kavanagh
Building Lasting Relationships and Exceeding Expectations
Source - USPRWire
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