“Fears of an office glut are increasing in Alberta’s Capital as the City of Edmonton and developers bid to build more towers on spec in a city where much of the new space remains vacant.  The current vacancy rate in downtown Edmonton is around 8.5 per cent, which is considered a “healthy market”, but analysts warn that if all the Class A space being planned proceeds, landlords could soon get a sinking feeling.

With new developments such as the Kelly Ramsey Building underway and slated for completion in 2016 and other proposed developments, there is potentially 1.1 million square feet of Class A office space that would be added to current inventory,” DTZ Barnicke reports.  Based on current absorption, it would take 10 years for the office market to return to a healthy state, the report concludes.

Since it was built three years ago, the Epcor Tower downtown remains 30 percent empty with 188,000 square feet vacant.  As well, the 174,000 square-foot office tower at 9888 Jasper Avenue, the former ATB Tower, is completely vacant after ATB relocated.

Over the past decade, Edmonton has seen 75,000 square feet to 100,000 square feet of office space leased up each year on average, but in 2013 the downtown experienced negative absorption of 253,000 square feet.

Still, the potential building boom would represent the biggest in 30 years.  “There is more serious consideration of new development in the office market right now than at any time since the early 1980’s,” said Avison Young prinicipal Cory Wasnack, who notes that only one new office tower – Epcor – has been built  since 1990.

“We predict that 2014 will be a game changing year for the office market – one that will bring excitement from a development perspective and challenges for older existing inventory that faces a new competitive frontier,” Wosnack said.

That could be a wild frontier, especially if the city proceeds with a 450,000 square foot high-rise at 101 Street and 104 Avenue.  The city plans to take 350,000 square feet in the building and deliver the rest as spectacular office space.  If the tower proceeds – it would be built with Katz Group and WAM Developments – about 300,000 square feet of city leased space in other parts of the city could go dark.  At present, the city leases offices various locations around the downtown, including Chancery Hall, TD Tower, HSBC Bank Place and Scotia Place.  If a greenlight were given, the City of Edmonton tower would complete in 2017.

Office lease rates in the downtown are already softening, agents note, and could fall further if a glut of space emerges.  Class A rental rates now average $23.50 per square foot, according to DTZ, down from $30.59 in 2008.

Avison Young forecasts a recovery in the Edmonton office market this year, with a projected 250,000 square feet leased up in the downtown and another 125,000 square feet absorbed in surburban markets. …..

–  WESTERN INVESTOR, MARCH 2014, ALBERT SEC. B.11 – 

Spring is just around the corner, so why wait any longer for the full colour of spring!

‘Tis the season where the trees start to awaken and the sun is rising earlier.  I think I speak for most when I say that we are eager for Spring to arrive. A fresh coat of paint inside your home? Why not! That could be the easiest way to get a jump-start on Spring.

The multitude of paint chips at any store would be a daunting task.  However, with the help from experts at Para Paints, things got a little easier.  Not all home owners have access to a professional designers eye so Para Paints ‘Colour Trend Palette Postcards’ for 2014 make the task more comfortable. This tool is formatted as a handy passport and all of the trends evoke a sense of escape or renewal.

“Beach House’ is a colour trend combination that brightens with cheerful yellows, matching grey neutrals and accent colours of bright  blues and greens.  Para Paints chosen colour of the year, Plantain Chips (PF52), is the perfect feature for the beach house inspired room.

These newest palettes provide the inspiration for refreshed  and rejuvenated rooms without the guesswork of choosing complementary colours.

“It can be expensive to completely redo a room, so the trick is to find a starting point for a colour refresh in your existing decor scheme,” says Garry Belfall , the senior brand Manager at Para Paints. “The 2014 Colour Trend Palette Postcards are designed to help people see how vibrant colours and complimentary neutrals can work together.”

A refresh on any room in your home  is a sure way to kick-start a new season.  It can be as simple as switching out one or two of your colours choices from an accent wall, rug or even couch cushions. It can make a world of a difference.

(Royal LePage Homeowner Newsletter – Vol 19 Issue 3 March 2014)

(Para Paints  www.para.com )

(NC) The home selling season is about to heat up. If you’ve decided to enter the market, you’re in good company, says Phil Dorner, president of the Ontario Real Estate Association.

“Spring tends to see an increase in real estate

listings, but it also brings out the buyers,” Dorner explains. “In order to achieve the best possible results, careful planning and know-how are required in the home selling process.”

Here is a simplified breakdown of some of the steps involved in selling a home:

Consult an expert – A Realtor will help you set a price, develop a marketing plan, make your home more ‘saleable’, and act on your behalf during negotiations to ensure your interests are protected.

Set a price – Choosing the appropriate list price for your home can lead to a timely sale, so it’s important to get it right the first time. The price should be realistic – neither too high nor too low.

Prepare your home – The house should be clean and clutter free. If necessary, hire a professional stager to help make a notable first impression and enhance its appeal. Everything in your home should be in working order – make repairs where necessary.

Market your home – A marketing plan may include holding ‘open houses’, advertising and most importantly, networking. Your Realtor will relay information about your home to a vast network of potential homebuyers in your market.

Receive an offer – Once you receive an offer you can either, accept, reject or “sign back” or “counter” the offer.

Negotiate the sale – Most offers require some negotiating. Once both parties have agreed on the terms of the sale, the next step will be preparing a contract.

Close the sale – At the “closing” meeting, ownership of the property is legally transferred to the buyer. Your lawyer will assist you in the legal transfer.

“Once you’ve closed, prepare to vacate your home and make a list of all the items you will need to turn over to the new owners,” says Dorner. “Finally, celebrate.”

More information is available at www.wedothehomework.ca.

www.newscanada.com

(NC) If the thought of the reawakening real estate market excites you, you may be ready to buy a home. Aspiring homeowners will need to have a few things locked down before taking the plunge.

“Above all else, homeownership needs to make sense financially,” says Phil Dorner, president of the Ontario Real Estate Association. “Market conditions, mortgage rates, investment opportunities – all of these factors are important, but they should not be the only reasons for buying a home.”

According to Dorner, you’ll know you’re ready to buy a home when:

You’re familiar with the market – You’ve discussed options with your Realtor and you’re familiar with home prices in the neighbourhoods you’re considering.

You know how much you can afford – You’ve worked out how much is required for the down payment and closing costs, as well as monthly mortgage payments and other expenses like utilities, insurance, property taxes and maintenance.

You have the money for a down payment – You have at least five per cent of the property value saved and ready to put towards a down payment.

You have a reliable income – You have consistent cash flow to cover monthly expenses.

You have emergency savings – If your income is unexpectedly interrupted, you’ll be able to make your mortgage payments.

Your debts are under control – Your debt-to-income ratio is where it needs to be in order to secure a mortgage through a lender.

Your credit history is in good shape – You’ve spent the last several months, or years, building or perfecting your credit in order to help secure a lower interest rate on your mortgage resulting in a lower monthly payment.

You are prepared for the responsibility – You are familiar with all of the maintenance that a home requires and you’re prepared to deal with it.

“If you checked all or most of these points, you may be ready to buy a home,” says Dorner. “It’s a big step, but it’s also an enjoyable and extremely rewarding one.”

More information is available at www.wedothehomework.ca.

www.newscanada.com

(NC) According to a recent forecast from the Canadian Real Estate Association, the housing market is poised to see 3.4 per cent growth in the coming year – and more and more of us are choosing condominiums.

Jamus MacPherson, a condominium insurance expert with Western Financial Group, encourages clients to read the fine print before signing on the dotted line. “Buying a home, whether it is a condo or a single family house, is one of the biggest financial commitments you will make in your life,” he says. “There are important differences between purchasing single and multi-family homes. When it comes to condos, keeping a few important details in mind can save you headaches in the long run.”

To help condo buyers sort through the clutter, MacPherson suggests referring to the following checklist:

Ask questions. Knowing the building’s history will give you peace of mind. Important questions to ask include: Do the unit owners own the recreational facilities as part of the common property, or does the condominium corporation lease them? How many units are rented? How much money is in the reserve fund and what major expenses, if any, are being considered in the reserve fund plan?

Schedule a comprehensive home inspection. This examination should not only include the unit you’re considering, but also the building envelope and common areas. When selecting an inspector or engineer, make sure they are qualified to provide a complete and reliable inspection. This will protect your investment in the long run.

Watch for last minute changes. If you’ve purchased a new-build condo, there is a chance that last minute changes may be made by contractors in construction. Keep a close eye out and don’t be afraid to ask questions if something isn’t as was initially agreed on.

Know what your condo board will cover. Anything to do with the complex’s structure is the responsibility of the condominium corporation, but you will need to secure your own insurance to cover personal property, liability or any changes you choose to make to the unit. According to MacPherson, understanding the condo corporation and the stability of the reserve funds is crucial.

“It is critical that you work with your broker to ensure that you not only protect yourself from losses to your own property, but also any costs that may be incurred from losses to the rest of the property that might be underinsured through the corporation.”

Be proactive with your insurance broker. Depending on the use of your condo, your insurance needs may change. “Many condo owners don’t realize that by taking on a roommate, or leasing out their unit, their current policy may no longer cover them,” says MacPherson. “Updating your broker on anything from new, valuable contents to cohabitation will ensure that you’re properly insured.”

More information is available at www.westernfinancialgroup.ca.

www.newscanada.com

Recently I attended a commercial seminar with speaker Donald R. Campbell, Founding Partner of Real Estate Investment Network (REIN). He spoke of some of the reasons why he believes Edmonton is the best market to invest in commercial opportunities in the country today. Some attributes he mentioned are:

– Great affordability
– Future Ring Road development to be completed In a few years
– LRT expansion plans
– Revitalization of downtown with construction of new arena and development of old airport grounds
– A shortage of existing multi-family (down to only about 30 properties) as well as a shortage of light industrial
– Very low current vacancy rates
– Prices in Edmonton are only going up!!

If you have any questions about his seminar or clients who would have interest in investing or selling in Edmonton just let me know!

Contact Don Cholak today for any inquiries. If I don’t have the answer, I’ll get it for you!!

By:  Phillip Dumoulin

Resale value is now always considered when a potential buyer is deciding upon a home to purchase. The ongoing debate is always – where is one’s money best spent to increase the value of the home? Budgets play a big part in a renovation and I see too many “all-in” renovations… In other words, homeowners blow their entire budget on one room and neglect the rest of the home. At “for sale” time this can leave a bad taste in a purchaser’s mouth, mainly due to the renovation of the one room having dated the rest of the home even more so. Unless you have an unlimited budget, here are some helpful do’s and don’ts that should assist you when coming to the renovation decision.

1. Never…ever…proceed with a cosmetic renovation when there are structural or plumbing/electrical issues with the home. I know these aren’t sexy fixes but they should always be a priority when doing renovations. Let’s face it, there is nothing worse than redoing your master en suite and then having a roof failure and water damage to the ceiling etc. I’m sure you have heard of the expression “good bones”…make sure you start any renovation with a solid foundation/structure.
2. The biggest mistake I see in renovations are the disconnects, an example being granite counter tops installed on 40 year old bathroom cabinets. You may consider this an upgrade but to a potential buyer they see this as putting “lipstick on a pig”. If you are trying to sell the bathroom as updated, good luck, no buyer will pay for poor renovations, especially when they have to be completely redone.
3. On a limited budget? Be smart! – consistent renovations are by far the best bang for your buck. In other words, do some mild updating in all of the rooms. You would be surprised how fresh a home looks with new paint, light fixtures/switches and modern baseboards. In most cases, for the average size home this will cost under 10K but it will most certainly add value when it comes time to re-sell.
4. Changing a traditional floor plan of a home and creating a more functional one is great for resale. Tearing a wall out can create that “open concept layout” one desires and it doesn’t have to be expensive.
5. Timeless design – when renovating, choose styles and fixtures that will remain current, what you like may not be appealing to the masses.
6. The kitchen is always the most expensive room in the house to renovate, so proceed cautiously! It can make or break the resale of the home so choose your layout, design and fixtures with care and hiring a designer for input, wouldn’t be the worst decision one could make.

So remember to always have a plan before starting a renovation. There is nothing worse than a half finished kitchen and no money left in the budget to finish it!

http://www.hgtv.ca/urbansuburban/article/what-key-elements-of-the-home-will-increase-resale-value/

By: Kevin Kittmer

Selling a house in a slow real estate market can be difficult. In times like these, it’s not enough to simply list your home and wait; you actually have to sell your home. No one really wants to sell anything when the market is bad, however, it’s not impossible to sell your house in these conditions. Even though the market’s not favourable to sellers and widespread economic recovery may be months, even years off, there are a number of tactics available to increase the likelihood of a sale. It just takes a positive attitude and a different kind of game plan. Here’s eight tips from a real estate sales rep to get you started.

Know Your Market

One of the most important things you can do to get your house sold is to learn your market, the value of your property and your competition. Most sellers operate in the dark, simply offering the property for the price they want, without regard to what other homes have sold for and are currently selling for. Undervaluing or overpricing your home can cost you tens of thousands of dollars.

Price Your Home Right

With homes sales slowing and prices plunging, there’s little doubt that selling for a good price in today’s market is going to be tricky. For example, the median existing home price across the Vancouver Island Real Estate Board area dropped more than 11% compared with the same month last year, according to the  Board. So if you try to ask as much for your property as your neighbour got a year ago, you’re going to turn off potential buyers. Instead, price your home conservatively by looking at similar houses currently on the market. Also look at the homes that aren’t selling. Chances are those owners priced their homes too high.

If you really want to stimulate a sale, you should under price your property by just a little. Trimming the price by a few thousand dollars can generate more foot traffic and create a buzz.

Make Your Home Presentable

Keep your house looking good at all times, repair things that are broken, and replace things that are rundown. Add a fresh coat of paint (neutral colors preferred), freshen up landscaping, trim trees, clean up clutter and remove personal items, so that prospective buyers can picture themselves in the home rather than seeing you there.

To stimulate a quick sale, consider using a professional home staging service. Your property must make a strong, positive impression. Staging a home is the cheapest way to make a house look different from your competition so it becomes the most memorable one that the buyer saw.

Be Flexible with Showings

It only takes one buyer to get your home sold. Don’t make your real estate professional feel as though their request for a showing is an inconvenience.

Play Up Your Home’s Best Features

If you have fireplaces, make sure that you have fires burning so that there is a beautiful warm glow and the sound of crackling. If you have a gourmet cook’s kitchen, have some great-smelling treats baking in the oven. Turn on soothing music. Set all lights and lamps if the home looks dark or feels heavy. Lighting is crucial.

Offer Flexible Terms

Often, the best way to sell a home more quickly in a buyers market is to adjust the terms of the sale instead of the price. While it may sometimes be necessary to adjust the asking price downward, or to negotiate a lower price with the buyer, sometimes offering an extended closing date will go a lot further.

Be Patient

Selling your home may take longer than in recent years, so it’s important to be patient and keep a positive attitude.

The First Offer Rule

If you get an offer within the first few weeks, the tendency is for sellers to try and hold out for a better offer. This is generally a mistake. Usually the biggest fish bite first, so keep in mind that your first offer will often be your best.

Kevin Kittmer is a Sales Representative for Royal LePage in British Columbia.

http://www.hgtv.ca/realestate/article/eight-tips-on-selling-in-a-slow-market/

Homes Staging Helps Bring Top Dollar Sales

The Top 5 C’s To Help You Get  Multiple Offers

By: Phoebe Chongchua

 If your house could be sold looking the way a model home does, do you think it might bring in more money? Chances are it would. That’s why home staging is a growing profession that’s rapidly changing the way homes are sold.

Scott McGillivray’s Tips on Winning A Bidding War

By: Scott McGillivray

With over a decade of investing in real estate under my belt, I’ve learned a few things about thebuying and bidding process. Whether you are a first time buyer, looking for a bigger home, or downsizing, investing in real estate is a smart decision – but only if you do it wisely.  Bidding wars, unfortunately, may be here to stay, so here’s some advice that may help you to secure your next property.

1. Crunch the Numbers
   One of the most important elements in the process of buying a home, particularly if you enter a bidding war, is getting pre-approved by your bank or mortgage company so you know exactly what you can carry – and how high you can go in your offer.
2. Do your Homework
   Buying a property is the most expensive financial decision most people will ever make in their lifetime so spending time to research the neighbourhood is so critical. There is so much emphasis on house inspections, and there should be, but the same amount of care should also be spent checking out local schools, transportation links, parks, crime rates, medical offices, family activities, seniors programs, daycares and even future housing developments.
3. Nail the Timing
   I try to get into properties on a Wednesday so I can put in an offer on Thursday and avoid the weekend open house competition –  or before they are on MLS. By beating out the weekend competition, I might not have to enter into a bidding war. There’s no law that states that you can’t make an offer before the official offer date and a good agent should send you properties as soon as they are available and preferably before they go public.
4. Pick the Right Agent
   Having an agent who has your best interest in mind is key to winning a bidding war. Your job as a buyer is not to seal the deal, it’s your agent’s job and they need to know what your limit it is – and respect it. If your agent tries to up sell you on the price and encourage you to go beyond your budget, it’s time to find a new agent.
5. Keep your offer clean

   Surprisingly, not everyone is after top dollar when it comes to selling their home. I’ve put in a lot successful offers that may not have been the highest, but they were the cleanest. A clean offer with pre-approved financing, especially in a multiple offer scenario, shows theseller that you are serious.  Conditional sales and offers that are contingent on financingjust don’t fly when there are other offers on the table.

http://www.hgtv.ca/incomeproperty/article/scott-mcgillivrays-tips-on-winning-a-bidding-war/

Here are some interesting facts and statistics about the real estate market that may have you interested.

According to REALTORS Association of Edmonton: 

• Sales of residential properties are up in double digit increments in all categories when compared to last year.
• Total residential sales in July were up 2.4% year-over-year
• Prices were also up year-over-year in all categories
• The average price for a single family detached (SFD) property in the Edmonton Census Metropolitan Area (CMA)  in July was $410,372, down 0.5% from June but up 3.4% from a year ago. Condominium average prices dropped 7.4% m/m but were up 2.6% y/y at $242,516. Duplex/row house prices were up 8.6% y/y (down 2.5% m/m) at $330,906.
• The residential average price in the Edmonton CMA in July was $350,726 ( down 2.5% m/m, up 3.3% y/y)
• These are the highest figures for July that we have seen since 2009″ said the President Darrel Cook of  REALTORS Association of Edmonton. “Prices and sales have peaked for the year and the  month-over-month numbers are lower than June but when compared to last year our market is very robust”
• Environics Analytic’s, a Toronto based date analytic ‘s firm, reported last week that the average net worth of an Edmonton household** was $433,970 in 2012, up 1.6% from 2011 as compared to the Canadian average net worth of $400,151.*
• Cook as well said ” Edmonton has jobs, house options, and an economy that is attracting newcomers to the city and ensuring that current residents have an appealing lifestyle”

For all of those who have wondered what the statistics look like on what the sales market in St. Albert looked like for the month of July 2013 verse the prices of  July 2011

SFD Sales …                          2013:  96                                                            2011: 71

SFD Average Price …       2013:  $447,897                                             2011: $445,229

Condo Sales…                     2013: 29                                                               2011: 15

Condo Average Price…   2013: $ 263,007                                              2011: $263,027

 By: Jonathan Whiting

You may or may not be aware of this fact, but more people are choosing to use a real estate agent than ever before. In correlation to the increased demand for real estate agents is the so-called democratization of information – the opening of the web, a.k.a. the Google factor, and the general trend of consumers choosing how and when they purchase products. When you analyze the statistics surrounding Internet adoption and demand for real estate agents, an untold story unfolds.

Let’s start with the number of home buyers working with a Realtor, as published in a recent U.S. report issued on Realtor.org. In 2001 about 69 per cent of all home buyers worked with a real estate agent. Dramatically, by 2012 that number increased to 89 per cent, according to the National Association of Realtors (NAR). That’s a whopping 20 per cent increase.

That’s a good news story for Canadian real estate. After an onslaught of news about an uncertain economy over the last four years, along with a general opening up of information online, you would be forgiven for assuming that Realtors’ future in the marketplace might be at risk. The numbers are not reflecting that, and the story doesn’t stop there.

The increased demand for real estate agents may be related to a surprising factor.  A growing demographic of home buyers is adopting the Internet and technology in their home-buying process. An analysis of the 2012 Profile of Home Buyers and Sellers released by NAR found that home buyers using the Internet were more likely to work with a real estate agent. Twenty per cent more likely, to be exact. This is counter to a common assumption that the more access a home buyer has to information online, the less they will need to work with a real estate agent.

In reality, “91 per cent of home buyers who used the Internet to search for a home purchased through a real estate agent, as did 71 per cent of non-Internet users,” says the study.

Data released by the Parliament of Canada reveals that since 2000, Internet usage in Canada increased by 35 per cent. Today 80 per cent of Canadian mobile phone users are on a smartphone and 93 per cent of Canadians go online for product information. These latest statistics divulge an interesting outcome. With the ability to search for homes online Canadians have spoken through their actions. They like using the Internet to search for information about property and real estate agents when purchasing.

Perhaps the greatest value a real estate agent provides for the home buyer is a sense of security that they are making the right decision and that the deal is put together correctly. With the increase in accessible information online, it is likely home buyers are realizing just how much information is available and are recognizing the need for an expert in the purchasing process

According to NAR, 87 per cent of buyers surveyed viewed real estate agents as a source of valuable information. Another study by Mustel Group Market Research found home buyers believe that the greatest value a real estate agent provides is dealing with the details and negotiating the best price.

One can conclude from all this that with the rise of technology, Canadian home buyers are embracing real estate agents. That’s not to say there isn’t uncertainty. But the numbers expose strong demand for real estate agents from the most promising of all consumers groups, the emerging home-buying demographic. Canada’s youngest home buyers using the Internet are also the most likely to work with a real estate agent. The future of Canada’s real estate agents is remarkably good.

Jonathan Whiting is a founding partner of StreetText.com, a text message and web marketing platform that serves Canadian real estate agents and mortgage brokers coast to coast.

http://www.remonline.com/demand-for-real estate professionals-is-increasing/

Lately on the news stories have been erupting of the news of the CHMC cooling down the mortgage market. In the article written by Julian Bel Trame from The Canadian Press ; He talks about what this means for the mortgage market and what the outcome may be.

CHMC cap on mortgage-backed securities to hike home costs, cools market. 

August 6, 2013

OTTAWA – Canadians may soon be paying more for new home loans as Canada Mortgage and Housing Corp. begins to clamp down on guarantees for mortgage-backed securities.

The government agency has notified banks, credit unions and other mortgage lenders that they will each be restricted to a maximum of $350 million of new guarantees this month under its National Housing Act Mortgage-Backed Securities (NHA MBS) program.

This year, the federal Crown corporation was given authority to guarantee up to $85 billion under the program but by the end of July, $66 billion had already been committed.

“As a result of this unexpected increase in issuance volumes to date and to better manage volumes going forward, CMHC will be introducing a formal allocation process in late August,” CMHC said in an Aug. 1 note to lenders.

Analysts say the cap will make it harder and more expensive for banks to obtain funds to lend to their customers, which would likely be passed on by way of a bump in mortgage rates.

“The combination of steps the government has taken in the last year, coupled with the beginnings of a sell-off in the bond market… will put a bit of upward pressure on mortgage rates,” said CIBC chief economist Avery Shenfeld.

“Overall, the days of very cheap mortgages are going to be replaced by cheap mortgages.”

TD economist Diana Petramala, who specializes in the housing market, estimated rates could rise anywhere from 20 to 65 basis points, or the equivalent of 0.2 to 0.65 of a percentage point.

She noted that historically, this is a minor increase.

“Affordability will still remain in the housing market,” she said.

The conversion of loans into securities with CMHC backing is a way for lenders to tap funds from a broad range of investors and enable banks to issue more mortgages at a lower cost.

Analysts said Canadian banks should have no difficulties securing international markets for funding, but it will come at a higher cost. CMHC-backed securities are attractive for both banks and investors since they are largely default-proof.

Fearing an overheated housing market could infect the larger economy, and result in defaults which the government must bear, Finance Minister Jim Flaherty has taken a number of steps in recent years to stem the flow of mortgage credit.

Last summer, he introduced tighter rules for mortgage lenders and borrowers — a change that the real estate and lending industries say was the main reason for a slowdown in residential property sales that began last August and continued through the first part of 2013.

As well, the finance minister acted to limit taxpayer exposure to a housing crash by setting limits on banks’ ability to buy bulk insurance from CMHC.

Still, Flaherty has been frustrated that banks were priming the house mortgage pump too aggressively, oblivious to the fact that Canadian household debt continued to climb. At 165 per cent of annual income this spring, household debt reached heights similar to the peak in the United States prior to the 2007 crash that literally broke several banks.

This spring, the minister went so far as to publicly chastise some banks for dropping their mortgage rates too low.

The moves worked for awhile, but in the past few months, housing has been on an upswing, with starts again reaching unsustainable levels near 200,000 annually, sales picking up and prices continuing to record new highs.

“We are starting to see the impact of the changes wearing off… prices in most markets are now rising faster than income,” Petramala said. “So it makes sense that the federal government, CMHC, may want to limit some of the risk-taking in the housing market.”

In last month’s monetary policy report, the Bank of Canada cited the recent developments in the housing market as the top made-in-Canada risk to the economy.

“This renewed momentum would produce a temporary boost to economic activity and inflation, but more importantly, it would exacerbate existing imbalances and therefore increase the probability of a more severe correction later on. Such a correction could have sizable spillover effects to other parts of the economy,” the central bank concluded.

By: Sarah Daniels 

Buying a home is generally an exciting adventure – the thrill of finding a home that you and yourfamily can enjoy, where you will raise your children, make friends – all the good things that home ownership. But there are several things that you should consider before setting down your hard earned money on a home purchase.

1. Does this home make sense? Now when I say that, I mean will this home make sense for you and your family in the long run? Are you a young family and hope to expand? Maybe a two bedroom townhome is not the right buy. Sure, with one child it may be very manageable, but if baby number two is just a year away – you may be forced to move within a couple of years. With transfer taxes and real estate professional fees, you could eat up any profits made, and that’s just not a smart buy. Ideally you should look for a home that will accommodate you for at least five years. This may mean forgoing some fancy upgrades, but ultimately the cosmetics of a home can be changed, whereas adding square footage is a whole differentball game.
2. Have I fallen in love with the finishings, not the home? This often happens with buyers. The reason show homes are so inviting is that the developers want you to fall in love with an ideal. However with all the fancy furniture gone, you may find the home you bought is not the home you need. You may have ignored all those stairs in that three level townhome because you loved that open concept living area. But if you noticed it when you visited, think about how it will affect your daily life. Do you have small children? Imagine carting babybuggies, strollers, and small children up and down those stairs. Suddenly, that home might not be such a great idea after all.
3. Do you see yourself in the neighbourhood? If there are tons of children in the neighbourhood, and you are a professional couple who crave quiet, then you might be in the wrong place. Conversely, if you have children, but there are no schools within walking distance, and no basketball hoops in the driveways, then they may not have any friends toplay with. Make sure you pick an area that fits your lifestyle, whether you’re looking in the city or the suburbs.
4. Don’t buy the best home in a not so great neighbourhood. Ideally, you want to buy in the best area you can, even if that means buying a home that may not have all the extras that you want. Your home is your investment, and ultimately the old saying “LocationLocation Location” will always hold strong. You can’t make more land, no matter how hard you try. However, you can invest in the home that you purchase through renovation. It doesn’t have to be all at once. But if you buy a home with “good bones” – i.e.: good sized rooms, a practical floor plan, and structurally sound – all within a desirable location – you will be making a sound purchase.
5. Can I really afford this? If you are a dual income couple and are planning on starting afamily, you may have only one income for a while. Will the home put undo financial pressure on you? If your income was to go down, would you be able to afford the home? Just because you “can” afford to purchase a home, doesn’t mean you should. Sit down and think about your lifestyle. Do you like to travel extensively? If you do, make sure you budget that into the equation. Are you planning to send your children to private school? Factor in the annual tuition to your costs. Don’t forget to speak with your mortgage broker. Any changes in interest rates could change your mortgage payment in the years to come. Make sure you can handle any upticks in the interest rates.

These are just a few things to consider when you enter the world of real estate. But ultimately common sense will rule the day. Always make sure that when you are shopping for your new home, you leave your rose coloured glasses at home!

http://www.hgtv.ca/urbansuburban/article/top-five-things-to-think-about-before-you-buy/

How well do you think you know St. Albert and all it’s amenities? After some reading about St. Albert I found out there was quite a few things I did not know about our beautiful city. Here’s a couple Did You Know’s:

St. Albert is:

#1 Best place to raise a family

#1 Best Small City In Canada

#1 Healthiest community in Canada

#2 Best City in Canada

#3 Best Place to raise kinds in Canada

More than 76% of students in greater St. Albert Catholic High Schools are eligible for scholarship monies

St. Albert has:

85 Kilometers of Paved Recreational Trails

160 Ft of water slide

76 City + School playgrounds

47 Soccer/Football Fields

28 Baseball Diamonds

24 Tennis Courts

St. Albert schools consistenetly outperform the province on all 16 Reporting Measures

13 St. Albert Hockey Players have played in the Olympics

4 Rugby Fields

We live in pretty amazing community, don’t we?

Almost two-thirds of young Canadians (63 per cent) are looking to purchase their first home within the next two years, according to a recent RBC Home Ownership Poll. But these 18-34-year-olds have significant concerns about making the leap. Almost half of respondents (49 per cent) in this age group cited affordability as a reason they had not yet purchased a home, while one-third (34 per cent) said they were saving money for a large down payment.

“Buying your first home is a major milestone and you want to ensure you are both financially and emotionally prepared,” says Michael Schmidt, manager of client segment strategies. “There are no ‘do-overs’ when buying your first house, so it’s important to arm yourself with the right advice to avoid unexpected costs down the road.”

First-time buyers could also benefit from the wisdom of current owners. Three-in-five Canadian homeowners admit they made at least one mistake when they bought a house, including underestimating or overlooking significant renovations that the property needed, not having a bigger down payment, and lack of a home inspection.

Schmidt provides the following tips to combat some of common home buying mistakes:

• Put saving on autopilot: Down payment saving takes discipline. So when you get your paycheque, pay yourself first. One of the easiest ways to commit to this plan is to arrange for pre-authorized transfers from your bank account to your savings account.

• Understand the total cost of owning a home: Purchasing a house is more than just a regular mortgage payment. Budget for both one-time expenses (such as land transfer tax, property surveys, and legal fees) and ongoing costs (property tax, utilities, condo fees) and balance those costs against your lifestyle.

• Create a rainy day fund: Major repairs and upgrades are inevitable. Keeping a separate emergency fund will ease unexpected costs such as a leaky roof or a furnace repair.

More information is available online at /www.rbcroyalbank.com/mortgages/first-time-home-buyers.

www.newscanada.com

(NC)—The majority of Canadians prefer to make their big move during the summer season. There are a variety of reasons for choosing this time of year: it is easier to transport boxes in non-icy conditions, no need to worry about your belongings freezing during transport, and children’s lives are not disrupted by the transition since they are on summer holidays.

Minimize potential moving chaos by asking yourself the following questions:

• Do you need to keep everything? Moving offers a good opportunity to reorganize your life by giving away, donating or recycling items that you no longer need. You’ll thank yourself later when there is less to pack and transport.

• How well do you know your moving company? The Office of Consumer Affairs drafted a Consumer Checklist for choosing a moving company and it reminds Canadians to request their moving estimate in advance and be mindful of seasonal rates (a summer move can be pricier). Will your items be held in the transport vehicle overnight or a secure facility? Consider purchasing Replacement Value Protection, which will ensure the company is liable if your possessions are damaged.

• Do you have enough boxes and packing materials? Start collecting boxes and newspapers in advance; ideally you should begin packing non-essential items a month in advance. Pack and clearly label a couple boxes with important first day arrival items, such as toothbrushes, remote controls, medication, and pet food, which could otherwise become lost in the shuffle.

• Once you step in the door, what are your top priorities? After the bed is set up, most people are eager to get connected by hooking up their TV, internet and home phone. Rogers introduced a free concierge service which makes this process easier by setting you up with a personal concierge agent. The agent proactively connects with customers throughout the transition, reviews order details, answers billing questions, and can assist with any changes to your order if your moving date needs to shift.

• How will you keep your new home secure and connected? When settling into your new home, another important thing to consider is how to keep your new space and your family, secure and safe. Rather than get a traditional security system, consider Rogers Smart Home Monitoring. It provides far more than basic home security. For example, the system alerts you through text messages the moment your child arrives home from school. Rogers Smart Home Monitoring also allows you to automate everything from your lights, thermostat, to small appliances, and it even monitors water leaks and carbon monoxide levels. The best part? The whole system is controlled through your smartphone, computer or tablet so you can stay connected wherever you are.

Entering the next chapter of your life can be a thrilling time, but like any significant life change, the process can be quite overwhelming. Control potential moving chaos by jotting down questions and tracking their completion on your personal checklist.

For more information on Rogers Concierge and Rogers Smart Home Monitoring, visit: www.Rogers.com/Moves and www.rogers.com/smarthome

www.newscanada.com

Summer to-do lists are often filled with road trips, swimming pools, vacation adventures and taking in the great outdoors. However, for many Canadians, the warm-weather season means even bigger plans – such as buying a new home.

Purchasing a new property, especially for the first time, presents many questions. After separating the must-haves from the wish-list, finding the right real estate agent, and calculating how much you can afford, getting insurance for the new home is often left to the end, or only considered after the papers are signed and the move-in plans are underway.

“The type and location of home you buy can have a significant impact on your insurance premium,” says Wayne Ross, an insurance expert at Aviva Canada. “By looking at a new home through the eyes of your insurance company, you could save thousands in home insurance premiums.”

Ross offers four simple tips to keep insurance in mind when shopping for your dream home:

Explore the location: Neighbourhoods with lower crime rates and that are close to fire stations are kinder to your insurance premiums.

Think warm thoughts: Check out the heating system installed in the home. Oil tanks can cause expensive environmental damage if they leak while gas furnaces and electric heat are much less risky. If you heat with oil, you’ll likely pump more money into your premium.

Some things are better new: Houses with more recent heating, electrical and plumbing systems are less susceptible to fire and other dangers, and result in lower premiums. Also search for an updated roof and look for signs of wear and tear.

Examine your extras: Adding upgrades such as swimming pools or hot tubs can increase your chance of liability – and therefore your insurance costs.

More information are available from your insurance broker or at avivacanada.com.

www.newscanada.com

Whether you are a first time buyer, looking for a bigger home, or downsizing, investing in real estate is a smart decision – but only if you do it wisely. Bidding wars, unfortunately, may be here to stay, so here’s some advice that may help you to secure your next property.
1.Crunch the Numbers
One of the most important elements in the process of buying a home, particularly if you enter a bidding war, is getting pre-approved by your bank or mortgage company so you know exactly what you can carry – and how high you can go in your offer.
2.Do your Homework
Buying a property is the most expensive financial decision most people will ever make in their lifetime so spending time to research the neighbourhood is so critical. There is so much emphasis on house inspections, and there should be, but the same amount of care should also be spent checking out local schools, transportation links, parks, crime rates, medical offices, family activities, seniors programs, daycares and even future housing developments.
3.Nail the Timing
I try to get into properties on a Wednesday so I can put in an offer on Thursday and avoid the weekend open house competition – or before they are on MLS. By beating out the weekend competition, I might not have to enter into a bidding war. There’s no law that states that you can’t make an offer before the official offer date and a good agent should send you properties as soon as they are available and preferably before they go public.
4.Pick the Right Agent
Having an agent who has your best interest in mind is key to winning a bidding war. Your job as a buyer is not to seal the deal, it’s your agent’s job and they need to know what your limit it is – and respect it. If your agent tries to up sell you on the price and encourage you to go beyond your budget, it’s time to find a new agent.
5.Keep your offer clean
Surprisingly, not everyone is after top dollar when it comes to selling their home. I’ve put in a lot successful offers that may not have been the highest, but they were the cleanest. A clean offer with pre-approved financing, especially in a multiple offer scenario, shows the seller that you are serious. Conditional sales and offers that are contingent on financing just don’t fly when there are other offers on the table.

www.hgtv.ca