As central bankers clamor to attach parachutes to the falling stock prices by infusing capital in anyway possible, we have seen stocks and currencies rise and fall daily with more volatility than even the most seasoned traders can stomach. Both prospective and existing homeowners have seen mortgage rates steadily increase over the past 2 months as banks try to claw back their losses and price in the increased risk associated with holding mortgages.

See attached full article.

Market Update November '08.doc (243.00 kb)

For those wanting a steady return on their money, your home can be a sure bet. When the baby boomers started madly buying houses in the 1980s, suddenly real estate seemed like the path to instant wealth. The real estate markets fluctuate constantly. There have been times when house prices have gone down. However if you look at the overall price of homes in your area over the last ten years, in most cases, (depending on your region) prices have risen.
Where is the housing market headed? Nobody can accurately predict. But even if house prices don't rise phenomenally, a home has two strong things going for it as an investment. First, any capital gains on your principal residence are tax-free. If your home appreciates by six per cent, you get to keep every cent of your gains.
Now six per cent may not sound like much, but in terms of how much you end up with, you'd have to earn as much as twelve per cent on a fixed-income investment such as a GIC to match that return, after tax.
Second, you don't have to come up with the full purchase price, meaning you're able to harness leverage. The conventional mortgages require a down payment of twenty five per cent of a properties appraised value. Where as the High Ratio Mortgage, requires only five per cent down payment.
For example, if you buy a $200,000 home, you need to come up with around $50,000 for a conventional mortgage. If the home's value rises to $220,000, that's an increase of 10 per cent. But what's really happened is you've put up $50,000, and made $20,000. Your real gross return on your invested funds is around 40 per cent. But notice the word “gross”. Don't forget that your real return will be less.
Buying a home and having a mortgage is also a tremendously powerful forced savings program.

What is the perfect open house?  It is, of course, and event that attracts lots of potential buyers, of whom a few become seriously interested in your house, and at least one makes you a fair offer.

Chances are, you already know the basics.  On the big day, your house should be clean, relatively free of clutter, and presentable.

But you need to go even further if you want your open house to be a success.  After all, there may be competition.  Your open house may not be the only one in town that day, or even the only one on your street!

Although it is your home - with all the emotional attachment that goes with it - you need to think of your house as a product... a product that must be "packaged" to appeal to potential buyers.

How do you do that?  Here are some tips that can help:

• Clear the air of odours.  The faintest scent of cigarettes, pets, or even exotic cooking can be a turn off of some buyers.
• Pack up the personal items.  Buyers want to envision themselves in the house, not you.
• Buy some flowers.  A couple of potted flowers placed inside and outside the front doorway can add significant visual appeal.
• Make sure everything works.  Check for burned out lightbulbs, running toilets, derailed closet doors, and other things that may need a quick repair.
• Take the pets for a walk.  Don't leave them in the house during the event, no matter how friendly or well behaved they may be.

There are, of course, many other things that you can do to make your open house  a success.  Need more tips?  Call today.

The Bank of Canada cut its benchmark-lending rate Tuesday by a quarter point, citing an "uncertain" outlook for growth and inflation that poses "significant risks" to the economy. It also indicated that another reduction "will likely" be in the offing.

Paul Vieira, Financial Post 

Calgary, November 3, 2008 – MLS® sales activity slowed in Calgary during the month of October, but continued to present excellent buying opportunities, according to figures released by the Calgary Real Estate Board (CREB®). Single family Calgary metro sales for the month of October came in at 820, showing a decrease of 26.3 per cent from the 1,113 sales in October 2007 and showing a decrease of 28.8 per cent from last month’s sales of 1,152. Condominium sales for the month of October were 399, a decrease of 20.4 per cent from the 501
condominium sales recorded in October 2007 and showing a decrease of 14.2 per cent from September 2008 when 465 condominiums changed hands. “Sales have slowed during October; partly due to normal seasonal third quarter adjustments. Other factors may be that consumers are feeling a sense of uncertainty at the moment with the volatility of the stock market and the global economy. People are being careful, but being too careful may mean missed opportunities,” said CREB® President, Ed Jensen. In a recent Calgary Herald
article, Jensen said, “We may be in for some continued slower times for this quarter, but I believe this is the kind of market where real estate bargain hunters can fi nd those great deals, but if you’re not out there looking you can’t find the best deal. And it’s hard to negotiate the best deal when the market has turned the corner and everybody’s buying.” The average price of a single family Calgary metro home in October 2008 was $449,100, showing a decrease of 0.7 per cent from October 2007, when the average price was $452,254, but showing an increase of 1.1 per cent from September’s average price of $444,048. The average price of a Calgary metro condominium was $289,148, showing a 12.8 per cent decrease from October 2007 when the average price was $331,617, but again showing a slight increase of 0.6 per cent over last month, when the average price was 287,426. 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. Single family Calgary metro new listings added for the month of October totaled 2,322, a decrease of 10.2 per cent from October 2007, when new listing added totaled 2,586 and a
decrease of 11.7 per cent from last month, when new listings coming to the market were 2,631. Calgary metro condominium new listings added in October 2008 were 1,071, showing a
decrease of 11 per cent from the 1,203 new condominium listings added in October 2007 and a decrease of 9.7 per cent from last month’s condominium listings of 1,186. The median price of a single family Calgary metro home in October 2008 was $390,000, showing a decrease of 5.5 per cent from October 2007, when the median price was $412,500 and down 1.3 per cent from last month when the median price was $395,000. All Calgary Metro MLS® statistics include properties listed and sold only within Calgary’s City limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price. The Calgary Real Estate Board is a professional body of 5,474 licensed brokers and registered associates, representing 250 Member offices. The Board does not generate statistics or analysis of any individual member or company’s market share.

October Stats.pdf (15.55 kb)