CREB Stats July 2017 Housing recovery remains a work-in-progress

Saturday, August 5, 2017Norm Rousseauposted in CREB Market Statistics

Market sees modest inventory gains, but overall prices inch up.

City of Calgary, August 1, 2017 – Sales exhibited stable growth through the first half of the year in the Calgary housing market, but the number of transactions slowed slightly in July compared to last year.Capture

City-wide sales totaled 1,637 units, six per cent below July 2016 levels. Year-to date sales activity totaled 11,957 units, nine per cent above last year.

“Sales growth exceeded expectations so far this year. Clients were re-entering the market after delaying decisions until there were some signs of economic improvement,” said CREB® president David P. Brown.

Buyers work around mortgage stress test

Tuesday, July 18, 2017Norm Rousseauposted in Buyers

by REP17 Jul 2017

A new report reveals Canadian sentiment about home buying in Canada – including just how impactful the stress test might be.

In its latest report, entitled Consumers’ Perspectives on Home buying in Canada, Mortgage Professionals Canada aimed to simulate what percentage of prospective homebuyers would be impacted by the stress test policy that requires high ratio buyers to qualify at the posted rate of 4.64%.mortgage_rules_concept

According to the simulation – which included buyers with less than 20% down payment who could afford a market interest rate of 2.6% -- 20% would fail the stress test and therefore would not qualify for mortgage financing.

Of those who would fail, 45% said they would increase their down payment amount; 45% said they would buy a less expensive home; 20% would look outside their original targeted region; 39% would delay their purchase; 5% would do something else; and 7% did not know what to do.

Southview Church Stampede Breakfast July 13, 2017

Friday, July 14, 2017Norm Rousseauposted in General

This was the biggest Stampede Breakfast I ever helped organize and a great volunteer group of cooks fed 2,350 stampede guests. This event took a total of over 100 volunteers to pull it off! Congratulations everyone.


MaxWell Stampede Breakfast 2017

Sunday, July 9, 2017Norm Rousseauposted in General

Gorgeous day! Our great volunteer group set up, cooked and fed over 800 stampede fans.


Possibilities for consumers in the event of a BoC rate hike

Friday, July 7, 2017Norm Rousseauposted in General

Home News by Ephraim Vecina 07 July 2017

The looming possibility of an interest rate hike by the Bank of Canada—an eventuality spurred by recent hints from the central bank—should give both consumers and industry players cause to be alert of the likely outcomes of such a hike, according to a markets observer.172217328

Writing for, finance analyst Jordan Lavin noted that while banks have traditionally moved their prime rates according to the BoC’s decisions to maintain or slash their rates (which is in turn motivated by the central bank’s mandate to keep a 2-per-cent inflation target), “[the] last two times the BoC rate has gone down, the banks haven’t passed on the full discount to customers. After each rate cut of 0.25 percentage points, the banks only lowered their prime rates by 0.15 percentage points.”

“It’s possible that when the BoC rate goes up, the banks will raise their prime rates by only 0.15 percentage points, but it’s much more likely that they’ll pass on the full 0.25 percent point increase to their customers.”

Home owners who are already working off their mortgages need to take into account the possible impact, especially when they have variable-rate mortgages (as fixed-rate products will be mostly unaffected).

“When the prime rate rises or falls, variable mortgage rates rise or fall with it. In fact, variable mortgage rates are usually expressed as prime plus or minus a certain percentage,” Lavin explained. “If the prime rate goes up, you’ll pay a greater amount of interest on the outstanding balance of your mortgage. In some cases, your monthly payment will increase to cover the additional amount.”

Lavin added that financially struggling consumers in this category can approach their brokers and suggest a switch to a fixed-rate mortgage, which will shield borrowers from further upward movements in the BoC rate.

Meanwhile, first-time home buyers can rest assured that the maximum amount they can borrow will not suffer from a rate hike.

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