Peter Chapman 35% Referral Fee! 403-831-1242's Blog

Canada's Mortgage Rates are going up tomorrow.

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Tue, 05 Apr 2011 11:15:32 -0700

Impending Mortgage Rate Increase

There are a few indicators we watch that signal when mortgage interest rates may start going up. You can secure a 4 month rate-hold now so you can shop with confidence as you will know what your payments will be when you move in. If the rates go down then you still get the lower rate. How great is that?!

Strategy For Re-Mortgaging / Debt Consolidation

If you have an existing mortgage at a rate more than 4.5% then there is an excellent strategy to take advantage of these coming rate increases that will save your money on your payout fee and get you the last of these rates before they increase for good. Please contact us to discuss.

Canadian Mortgage Bonds

A mysterious number called "the spread" that banks use to price mortgages is at 1.09.

Currently lenders are looking for a spread between 1.35 and 1.55. To increase profitability and get the spread back to

the middle of the comfort zone (1.45 from 1.28) they will increase the rates to keep shareholders happy.

Calgary's housing market recovery driven by single family home sales

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Fri, 01 Apr 2011 18:34:22 -0700

Calgary's NW sector boasted the largest gains in single family homes sales in the first quarter

Calgary, April 1, 2011 - According to figures released today by CREB® (Calgary Real Estate Board), Calgary Metro sales remained at levels similar to the first quarter of 2010. Improved sales in the single family market have largely been offset by declining sales in the condominium market, indicating that the gradual recovery will continue to be driven by the single family market for the better portion of the year.

Single family home sales in the first quarter of 2011 were 3,309, a 4 per cent increase over the first quarter of 2010. The combination of stable home prices, low interest rates and year-over-year improvements in employment are the primary factors fueling the growth.

March 2011 single family home sales totaled 1,355, a 3 per cent decrease over March 2010 figures. The decline in sales was accompanied by a 19 per cent year-over-year decline in new listings. As a result, inventory remained at three months, which indicates a balanced single family market.

The NW sector boasted the largest gains in single family home sales in the first quarter of 2011 with 1,198 sales, a 13 per cent increase over the first quarter of 2010. Sales in the SE posted quarterly gains of 5 per cent, while the SW remained relatively unchanged and NE sales declined by 9 per cent.

"Improved affordability levels in single family homes have offered some individuals the opportunity to purchase homes in areas of the city that were once unattainable," says Sano Stante, president of CREB®.

The SW sector recorded the highest single family average home price in the first quarter of 2011 at $570,748, while average home prices in the NW and SE were $464,990 and $422,821 respectively. The NE sector continues to remain the most affordable, with average prices hovering around $282,713.

"Average single family home prices remain relatively stable compared to the first quarter of last year, as people continue to purchase more homes at the lower end of the price spectrum," says Stante. "The rise in sales has been primarily offset by a corresponding increase in listings, resulting in stable average prices."

Calgary Metro average price of single family homes in March 2011 was $462,947, a 2 per cent decline from March 2010, and virtually unchanged from the previous month. Meanwhile, the median price declined by 5 per cent compared to March 2010.

Quarterly condominium sales continue to fall over levels recorded in the previous year, down by 11 per cent compared to the first quarter of 2010, while quarterly average prices are down by 1 per cent. It is important to note the quarterly average price of condominiums is skewed upwards for 2011 due to the sale of a $4.1 million condominium. If we remove this sale, quarterly average price would have declined by over 2 per cent.

The average price of condominiums in March 2011 was $280,781, while the median price was $256,000, a respected 5 per cent drop and 7 per cent, respectively, from levels recorded in March 2010.

Improved selection of affordable single family homes and higher inventory levels of new condominiums have reduced the demand for resale of condominiums. It is anticipated that demand should gradually recover in the latter half of the year, as Calgary's economic recovery continues to take hold. "This provides a window of opportunity for condo buyers early in the year to discover a large selection of available product at affordable prices," says Stante.

Calgary's labour market has shown some recent improvements, however, it is still in the early stages of recovery as job growth remains below the 5-year average. Improvements in the energy sector are anticipated to show stronger job growth in the second half of the year, providing the foundation for continued recovery in the housing market.

Calgary's Housing Recovery Has Staying Power

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Sun, 13 Mar 2011 22:23:25 -0700

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).

"November sales are clearly demonstrating that the recovery in the Calgary housing market has staying power," says Bonnie Wegerich, president of the Calgary Real Estate Board. "We have now seen six consecutive months of year-over-year sales increases for both the single-family and condo markets. And November sales are in line with what we would expect this time of year in a balanced and normalized market."

First Time Buyers shaking it up

"Clearly low borrowing costs are helping to fuel this recovery," says Wegerich. "Many buyers want to get in while mortgage rates remain at record lows. Better employment numbers and an improving economic outlook are giving the market an added boost."

"It's the ‘new kids on the block'-the young first time homebuyers if you will-that continue to be a bright spot in our housing market. Clearly this can be seen in the strength of our condo sales this month and it is helped by the narrowing gap between the costs of renting when compared to owning," says Wegerich.

"But interestingly in recent months we have also seen more move-up buyers enter the market and this is being reflected in the strength of our average price of single family homes," adds Wegerich.

Pricing in Calgary will remain stable

"A healthy demand for homes combined with a steadily decreasing inventory is holding prices firm," says Wegerich. "Our absorption rate for single family homes in the city of Calgary is currently less than 2.5 months."

"Pricing will remain stable and may edge upwards in some markets-but it is unlikely that we will see any dramatic jump in prices in the months to come," adds Wegerich.

Calgary MLS Listings Single Family Homes

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.

November 2009 saw 1,095 single family homes sold in the city of Calgary. This is a decrease of 15 per cent from 1,285 sales in October of this year. In November 2008 single family home sales were 670.

The average price of a single family home in the city of Calgary in November 2009 was $464,444, showing no significant change from October 2009, when the average price was $462,465, and showing an increase of 7 per cent from November 2008, when the average price was $435,471.

Calgary MLS Listings Condominium Sales

The number of condominium sales for the month of November 2009 was 504. This was a decrease of 16 per cent from the 601 condominium transactions recorded last month. In November 2008 condominium sales were 284.

The average price of a condominium in the city of Calgary in November was $294,264 showing a 2 per cent increase from October 2009, when the average price was $289,155 and a 3 per cent increase over last year, when the average price was $285,820. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

Calgary MLS Listings are down from October 2009

Single family listings in the city of Calgary added for the month of November totaled 1,365, a decrease of 25 per cent from October 2009 when 1,819 new listings were added, and showing a decrease of 13 per cent from November 2008, when 1,567 new listings came to the market. Condominium new listings in the city of Calgary added for November 2009 were 705, down 18 per cent from October 2009, when the MLS^® System saw 859 condo listings coming to the market. This is a decrease of 5 per cent from November 2008, when new condominium listings added were 741.

Prediction for the Calgary Real Estate Market?

"We expect sales to taper off as we enter the winter months," notes Wegerich. "But the market is well above the trough we saw at the end of 2008 and we are now seeing much healthier and balanced conditions for both buyers and sellers."

All city of Calgary MLS^® statistics include properties listed and sold only within Calgary's city limits. All of this information was provided by CREB Stats

What is needed to drive growth in Calgary and Alberta?

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Sat, 12 Mar 2011 12:48:02 -0800

Jobs and Migration

Confidence in employment prospects and family income will determine the pace of the housing market. As such, a more robust improvement in Calgary's housing market will require new permanent jobs.

Oil and Gas

Oil and gas have contributed to some improvement in employment in
Alberta this year, but these jobs have been focused in the northern regions of the province. Consequently, net interprovincial migration from June 2009 to June 2010 showed 2,183 people left the province. Jobs and more affordable housing attracted migrants to BC (9,367),
Saskatchewan (3,909), Newfoundland (1,309), and New Brunswick (722).

Projection for Employment Growth

Overall, Alberta's employment growth will fare better in 2011 than in the year past, but will only grow by about 1.3 per cent. Like 2010, job growth is expected to be in oilsands.

source: StatCan

To view the rest of this article visit:

http://www.creb.com/public/documents/Electronic%20Media%20Package/CREB_ForecastReport_2011.pdf

How does the City determine value?

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Fri, 11 Mar 2011 17:04:15 -0800

The City of Calgary uses a few methods of how they calculate their property assessments:

Sales comparison approach - sales of similar properties.

Income approach - capitalize the income being generated by the property.

Cost approach - land value plus the depreciated replacement cost of the property.

Residential Property Assessment
When we prepare residential assessments, we typically look at all similar properties within a similar area that are sold during the same timeframe. When properties are sold, there is a range of sale prices. Assessed values are based on these prices. This is called the sales comparison approach to valuation.
Multi-Residential Property Assessment
For multi-residential property assessments we use the income approach to valuation - capitalize the income being generated by the property.

Non-residential Property Assessment
In determining non-residential assessments, the City uses one of the three approaches to value stated above.

Research what your own tax assessment is by going to: https://assessmentsearch.calgary.ca/TermsOfUse.aspx

Boom time

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Tue, 08 Mar 2011 11:06:34 -0800

It's everywhere in Alberta now...

My wife and i sold our place and are now looking at buying 3 more places. It's 2004 baby!

I love Calgary

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Fri, 04 Mar 2011 14:49:26 -0800

So good to see all the activity again! The Energy Sector is heating up and housing is already awakening from a 3 year slumber.

We just sold our condo and are really pleased with how our busineses are working.

RE/MAX Western's Calgary Barometer Report 2000 to 2010

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Wed, 09 Feb 2011 23:09:29 -0800

For those who are interested:

http://www.youtube.com/user/remaxwestcanada?feature=mhum#p/u/8/qLFbO-0UKK4

I'd love to discuss this with anyone... there's lots happeningin Calgary these days.

The BEST GOOD NEWS I have heard in a long time! WooHoo!

Peter Chapman 35% Referral Fee! 403-831-1242 (RE/MAX Mountain View) — Mon, 07 Feb 2011 13:11:37 -0800

Mark Herman's "MARKet Update" Feb, 2011
Mark Herman; AMP, B. Comm., CAM, MBA- Finance www.MarkHerman.ca
One of the Top-10 Brokers at Canada's Largest Independent Mortgage Brokerage
Mortgage Alliance Mobile: 403-681-4376 Secure e-Fax: 1-866-823-1279

Now is a great time to buy; with mortgage rates near all time lows & prices down (both are expected to go up), and new mortgage rules start March 18
Highlights

· Maximum amortization reduced from 35 years to 30 years decreases purchasing power by 8%, or increases monthly payments by 8% for deals after March 18th. Full details of the new rules at www.MarkHerman.ca.

· Canadian economy is the strongest of the G7 and recovering. When the recovery takes hold, rates and prices are expected to rise. Alberta will maintain the strongest economic growth in Canada (and even the USA).

· Mortgage rate 110-year low was 3.60%, is now 3.79%. Variable is at Prime-.8%=3%-0.8%=2.3% - Wow.

• 5% down and 0% down still exist but for how long?

National Data Points

· Strong Government of Canada policy supports a continuing economic recovery.

· Economic activity in Canada is back to pre-recession levels - the best performance of the G7.

· Canada's solid recovery has supported a recovery in the labour market. Since July 2009, employment has increased by more than

460,000 jobs, more than offsetting all of the jobs lost during the recession.

· Real GDP growth is expected to remain moderate in the near term, Canada is expected to continue to have the strongest growth in the G7 according to IMF forecast 2011-01-20.

· Global recovery is expected to be modest and led by emerging economies, particularly Asia.

· Canada has had the highest growth in real income per capita of all G7 countries (1999-2009).

· Canada is on track to return to a balanced budget by 2015-2016. Current federal deficit is only $55 billion.

· Canadian household finances are not as terrible as previously suggested and won't hurt consumer spending in 2011- BMO Capital Markets study. The negative focus has purely been on household debt reaching a record level of 145% of household income, but was missing the fact that family wealth has risen to 6 times disposable income.

· The overall measure of the Index of Canadian Consumer Confidence was a steady 85 points for the last half of 2010. Consumer confidence in Alberta remained relatively consistent in 2010 at about 87 to 89; higher than any other province in Canada.

Canada's recovery is forecast as the strongest of the G7

Risks to the Global Outlook

· The global recovery remains fragile with uncertain strength in advanced economies, particularly in the U.S. A.

· High government / sovereign debt levels in some European countries is concerning.

• Global imbalances in trade continue with implications for a strong Canadian dollar.

Alberta

· Alberta recovers from its severe recession with real GDP set to grow at 4.3% in 2011, says RBC Economics. In 2011, RBC projects Alberta's economic growth will be second only to Saskatchewan, the fastest growth 2006, due to the booming energy sector and increased job creation which brought down the stubbornly high unemployment rate.

· "Improvements in the employment market help reverse the out-migration to other provinces that earlier slowed population growth to the lowest rate in 15 years," said RBC. "These are the kinds of turnarounds that will spread the recovery more widely throughout Alberta."

· Alberta's employment to lead the country with a rise of 2.3% in 2011, and creation of 37,000 jobs, the highest total of new employment since 2007, which should ultimately boost population growth. With interest in developing Alberta's oil sands growing ever higher, the gush of capital spending on megaprojects is expected to

continue.
• In 2012, the rising tide of energy-related spending will keep the Alberta at the top of Canada's growth rankings.

Interesting Details in the US Economy
1st, growth of the US economy has usually been dependent on consumer spending. Still, retail spending is on target to hit a new all time high this year. This is happening with 7.5 million people out of work. High levels of debt was the major factor for the US recession. Now, retail sales are reaching new highs, even as the US savings rate has increased from a low of 2% to 6%.
Homes are now as affordable as they were before the boom in '06 and similar to 1988

The dollar is expected to stay close to par with the US

We are now as wealthy now as we were before the crash.

Moreover, the use of credit cards by American consumers during the US Thanksgiving was at a 26 year low. The news does not focus on the 90% of Americans with jobs. This shows confidence is returning to the American consumer and they are acting in a responsible manner which means this level of activity is sustainable. This should give the US economy a good boost.
2nd, US corporations went into the financial crisis with records amount of cash on hand - $2 trillion. As 2011 starts, employers may not have much choice about hiring more workers. Current statistics indicate most employees have been working as hard and as long as they possibly can.
Hiring cannot be postponed any longer if business improves. Businesses are going to have to start adding to their payrolls, and they have the money to do it. They also have the money to expand their plants and equipment once confidence reaches a certain point. When the pace of hiring increases, a wave of increasing confidence will likely wash over the United States, other economies and the stock markets.

Outlook
Canadian Dollar:
• Recovering economy and a rise in commodity prices, expect the dollar to stay at parity to the US.

Steady Mortgage Rates:

· Expectation fixed mortgage rates will begin to rise mid-

2011 to just over 6% by end of 2012.

· Mortgage rates were at historic lows and are now holding

until the recovery finds a strong foot hold. Rates for the 5
year:: May 2008 5 yr =7.25%, April 2009 = 5.25%, June 2010 = 4.39%, Feb 2011 = 3.79%.

The Mortgages are Marvellous Advantage
Please feel free to call for mortgage advice, a rate hold or a free 5-minute mortgage check-up. Remember the banks pay us, your rate is usually always lower than you can get at the bank, and you can usually be placed at your own bank. We also answer our phones and work on your schedule.
Why not take advantage of the skills, years of experience, and non-biased advice of a dedicated, top- broker with access to all of the banks for the largest purchase you can make?

Inflation is under control and below the 2% target as set by the Bank of Canada. Policy will be adjusted to keep inflation as close to the 2% target as possible.
Consumer confidence has returned and Canadians are now spending at pre-recession levels after
holding onto funds during the recession.