Tag Archives: Housing Prices

Housing and the Big, Bad Budget

A lot has been said about Thursday’s budget announcement. From Flaherty’s shoe selection to a vague job-training program, many Canadian’s were left slightly confused following the much-anticipated announcement.

With that being said, Flaherty’s eighth (and potentially final) budget announcement could have been worse, especially for the mortgage industry. Thursday’s budget included a tightening of controls on mortgage lending once again, as well as another promise to further limit lender access to bulk mortgage insurance. While this will inconvenience some lenders, it’s actually good news for taxpayers. The announcement is just the latest in a long line of moves from the Finance Department that touch on concerns over the housing market. As Canadian’s continue to sink themselves deeper into household debt, Flaherty once again verbalized his mounting anxiety over interest rates.  Continue reading →

A Closer Look At Your Neighbourhood’s Housing Market

The elusive soft landing has finally hit ground in Canada, as the latest reports from the Real Estate Association show a decrease in year-over-year sales. The real estate group found that sales were down 0.1% in October from September. Actual sales for October (without the seasonal adjustment) were down 0.8% from a year ago.

While not unexpected (a housing slowdown has been anticipated since the government tightened mortgage rules back in June) experts are worried that the changes to the regulatory system may have a bigger impact than originally expected.  Continue reading →

The Perks of Paying Off Your Mortgage Faster

The amortizations gods have been good to Canadians over the past three years. Just 60 months ago, mortgage rates were nearly double what they are now, costing homeowners thousands of dollars in interest every year. In fact, if you were to compare interest costs in 2007 with today’s rates, you’d save over $100,000 in interest over a 25 year amortization period on a $200,000 home.

There’s no doubt that now’s the time to take advantage of these historically low rates. Which begs the question – are homeowners doing enough to capitalize on these record-breaking deals?

Continue reading →

Housing Slow Down Has Started

The future of Canada’s housing market rests in the hands of the nation’s buyers, or at least that’s what the latest housing stats would have us believe. Signs are everywhere that Canada’s once red-hot real estate market is about to freeze over, thanks to a combination of tighter mortgage rules and increasing consumer debt levels. Not only are home sales grinding to a hault, the long-booming prices are finally starting to drop.

Granted, sales always slow down as the seasons change and the temperature drops. Only time will tell whether or not spring will bring a much needed renewal to a reeling market. Continue reading →

How Age is Impacting the Housing Market

It used to be that buying a home was a solid investment in your retirement. Simply purchase a fixer-upper, restore it to it’s former glory, incorporate some modern amenities, and presto-changeo: 20 years from now you’ve got yourself a nice, big next egg. However, things have changed, leaving many mature homeowners facing a frustrating reality.

According to the Bank of Montreal, about a third of Baby Boomers plan to sell their home to fund their retirement. Unfortunately, the questions remains as to whether or not there will be enough buyers capable of purchasing these properties as more and more seniors begin to downsize. An oversupply of houses could ultimately result in a price plunge, leaving many retirees high and dry. Continue reading →