buying a home

Regional sales outpace long-term averages

Higher inventory levels push downward on price Sales activity in the resale residential housing market surrounding Calgary continued to outperform long-term averages in the third quarter despite reporting double-digit declines when compared with last year.
A total of 1,269 units exchanged hands from July to September, representing a 20 per cent drop from record-setting levels established during the same time in 2014. Overall, however, year-to-date activity in the surrounding area continued to outperform both the five- and 10-year averages.
New listings, meanwhile, declined year-over-year by a moderate three per cent to 2,229 units, contributing to inventory gains during the quarter. Months of supply in the region increased from 4.3 in July to 5.7 in September. While higher months of supply are typical for the surrounding area, easing absorption rates started to place downward pressure on quarterly benchmark prices, declining by 0.41 per cent to $433,033 compared to last quarter.
Robust listings in both Airdrie and Cochrane, specifically, caused notable inventory gains. Nonetheless, detached benchmark prices in both municipalities remained relatively stable, posting moderate changes from the previous quarter and remaining higher than levels recorded last year.
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Click on the link to download the entire report: Town_and_Country_Stats_Third_Quarter

New tax set to impact Ontario home sales

While Alberta does not levy a land transfer tax, there are nominal registration fees. The land transfer registration fees and mortgage registration fees are based on the purchase price and mortgage amount being registered.
According to the Tariff of Fees Regulation, Alta. Reg. 120/2000, the registration fee is $50, plus $1 for every $5,000 of the property value; if there is a mortgage, another $50, plus $1 for every $5,000 of the mortgage amount, is due. Call us if you would like know more about fee’s and expenses when buying a home!
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The Ontario government is to extend the power of municipalities across the province to charge a land transfer tax, according to the Ontario Real Estate Association.
The additional cost of a home, already in place in Toronto, would add thousands of dollars to the cost of buying a home in the province; government officials deny that the measure has been decided on.
“Ontario homebuyers are already charged a provincial land transfer tax, so by adding a municipal tax, they’re essentially doubling the tax burden on Ontario families,” said Patricia Verge, president of OREA.
“If the Ontario Liberals follow through with this plan, homebuyers will be forced to pay $10,000 in total land transfer taxes on the average priced home in Ontario, starting as early as next year.”
The association calculates that more than 38,000 property transactions did not take place in Toronto because of the introduction of the municipal land transfer tax.
Benjamin Tal, deputy chief economist with CIBC warned against the extension; he told the Financial Post that “most of Ontario is not booming.”
A new Ipsos Reid poll shows that the overwhelming majority of Ontarians (89 per cent) outside of Toronto oppose a new MLTT charged on home purchases in their area.
Respondents agreed that if a new land transfer tax were put in place, it would limit their ability to afford a home (77 per cent) and they would likely have to delay a purchase (75 per cent).
The majority (77 per cent) of Ontarians agreed that the government should do all it can to help families own their own home.
(http://www.canadianrealestatemagazine.ca/market-update/new-tax-set-to-impact-ontario-home-sales-198627.aspx)

Investors Alert! Banff trail – suited bungalow for Sale!!

Banff Trail R-C2 60 foot frontage. Investors, this is a supreme revenue property or live up and rent down to supplement your mortgage. Excellent site for future development in this sought after mature community. Incredible location for students, walking distance to U of C and just steps to the LRT. Newer roof, newer siding. Large lot with double car garage. Eat in kitchen with plenty of cupboards and counter space, newer stove. Hardwood on main, updated bathroom and 2 bedrooms. Shared laundry in rear foyer- newer washer and dryer . Lower level 2 bedroom suite is spacious with newer laminate.An opportunity to own an inner-city home with present and future potential. Click Here for more details!
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Spotlight on Luxury – RE/MAX Collection Report

Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Montreal and Victoria in the first seven months of the year. Calgary was the exception; sales in the $1 million range decreased 28 per cent over the same period in 2014.
In Canada’s two largest luxury markets, sales of homes $3 million and up saw impressive gains. In the Greater Toronto Area, sales in this range increased by 119 per cent and in Greater Vancouver by 79 per cent between January 1 and July 31.
The increase of sales at the top-end of the luxury market can be attributed to two factors. One is overall price appreciation in both markets, driven by low inventory and high demand for single-family homes that hasled to more homes meeting the higher dollar threshold. A second factor is high demand for luxury homes from foreign buyers in both markets.
In Calgary, a healthy 2.3 to 2.5 months’ supply of inventory in the $1 million plus range has brought a more balanced market to the city. Luxury buyers are not witnessing a notable decrease in price; however, there is less pressure for buyers during the negotiation process. With more inventory available, conditions like home inspection and financing, which were rarer when buyers were frequently in a competing offer situation, have become part of the normal negotiation process again.
RE/MAX brokers and agents reported that foreign buyers have continued to drive demand in the Vancouver and Toronto luxury markets in the first half of 2015. These buyers, primarily from China, are typically families with children who are relocating to Canada to live. They’ve chosen Canada for its stable economy and high quality of life, and their real estate decisions are strongly influenced by proximity to good schools.
Although foreign buyers are less active in Montreal’s luxury market compared to Toronto and Vancouver, RE/MAX brokers and agents have reported a substantial increase in foreign buyers in Montreal during the first seven months of 2015. Its relative affordability, aided by the strength of the yuan compared to the Canadian dollar during this period, make the city a
good value proposition for foreign buyers.
In regions where condominiums are a significant part of the luxury market, sales of condominiums priced over $1 million rose year-over-year. Montreal, Toronto and Vancouver all saw an increase of high-end condominium sales. While demand in the luxury freehold market was driven primarily by families, luxury condominium buyers tend to be Baby Boomers who are downsizing during retirement. These buyers tend to spend part of their time in a second home or travelling, and choose condominiums for access to luxury amenities without the maintenance required of a house.
Based on interviews with RE/MAX brokers and associates, luxury market trends seen in Canada’s major markets during the first seven months of the year are expected to continue through the end of 2015. Click Here or on the image below for the full report:
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3 bedroom home right across from park in community of Braeside – Just Listed!

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11208 BRAXTON RD SW – $429,900

Pride of ownership is evident in this well maintained spacious bungalow in a fabulous location right across the street from a green space/park! Bright and cheery living room and dining room area make this a wonderful area to entertain. Kitchen with bay window over double sink allows you to look onto your beautiful yard with matures trees and fabulous deck.Carport with storage and garden shed. Master complete with his and hers closets and 2pc ensuite. Two additional bedrooms up (one currently converted into a den but easily changed back. Fully finished lower level with plenty of storage, entertainment area, laundry and cold room, 3 piece bathroom and flex room/office . You will appreciate updates such as newer shingles, hot water tank and solid wood kitchen cabinets. Do not miss the outstanding opportunity to live in this lovely family neighbourhood, close to shopping. schools and all amenities.

Click here for the VIRTUAL TOUR!

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Just Listed in Thorncliffe!

6012 THORNCLIFFE DR NW – $630,000

Fully renovated inner city Bungalow w/ 1726sqft above grade & 1142sqft fully finished lower level. Fabulous location-9min to City Center, 2 blocks to bus & 15min to Airport. Tastefully decorated including hardwood & modern upgrades on one of Thorncliffe’s largest beautifully landscaped corner lots. Bright & practical eat-in kitchen w/ stainless steel appliances (Viking “Professional” gas range), granite countertops, pantry & instant hot water & filtration system. Spacious Master bedrm w/ two closets, stunning ensuite (custom shower, Air-Jet tub). Ultra cozy sunken sitting/dining area- 11 ft ceilings, large windows, gas fireplace w/ backyard access & views. Lower level includes: Bonus rm, rec/bar area, new soft silk carpet, exercise area, abundant storage & access to 20ft x 32ft garage. Newer high-efficiency furnace & AC w/ integrated steam humidifier. Exposed aggregate front/side paths, gorgeous 500+sqft aggregate patio, Rundle Stone, pergola & focal point, greenhouse, mature trees & beautiful gardens. Click Here to view the Virtual Tour!!

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Just Listed in Rosedale!!

1624 5 Street NW – $650,000
Attention developers, investors and anyone who has been waiting for the perfect location to build your future luxury home. This 50x120ft lot is now available.A quiet location with a lovely lot. This is your opportunity to live in the sought after inner-city neighborhood of Rosedale. A community that is close to all amenities including Kensington shops and restaurants, SAIT, U of C and the LRT. A lifestyle choice that provides time to spend on activities you prefer rather than driving… Walk to work – downtown! Click to view the virtual tour!
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Just Listed in Crescent Hts; Walk to work! Character home with double garage!

$575,000 – 217 10 Avenue NE
Charming inner-city gem in sought after Crescent Heights! Well kept 2 bedrm bungalow features; trendy exposed brick, oak hardwood flooring on main level. Open concept kitchen includes ceramic backsplash, updated appliances & brand new double oven, w/ 5 burner ceramic top stove.Plenty of cupboard space make this kitchen ideal for any aspiring chef. Hand blown artisan light fixtures in the hallway & bathroom,plus tiffany fixtures in entrance & living rm. Newly painted modern colours through out. Bright family rm has a vaulted ceiling w/ cozy gas fireplace, walk out to spacious tiered wrap around deck . Lower level offers a den/office space, plenty of storage and front loading washer & dryer. The very private beautifully landscaped back yard is south facing . Newer shingles, eves and soffits this year. Double car garage with a roughed-in gas line. Ideal location, on a very quiet street, just steps to Centre St bridge,parks, shops and restaurants. You can walk to work!  Click here to check out the virtual tour!
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I love Calgary! We remain positive despite adversity…

Calgary’s sales buoyed by consumer confidence

The positive outlook of consumers is helping to keep the Calgary housing market consistent with typical levels.
That’s according to a new report from the Calgary Real Estate Board, which notes that the volume of sales in June was only five per cent below the 10-year average for the month and three per cent higher than levels of the past three years.
“We’ve seen less concern from consumers lately,” said CREB president Corinne Lyall. “Consumers who were waiting for wide-spread price declines have been surprised to see that it just hasn’t happened yet, and so they’ve decided to take advantage of the improved selection and lower lending rates.”
June’s sales were 18 per cent lower than the same month last year, new listings totalled 3,122 and prices were essentially flat. The second quarter figures show that the worst may be behind us with year-over-year declines in sales of 22 per cent, down from 32 per cent in the first quarter.
The apartment sector in Calgary is showing the greatest weakness in absorption rates, creating downward pressure on prices, although still 1.65 per cent above last year’s average on an adjusted basis.
Detached homes reached a benchmark price of $515,500, up 0.4 per cent from the same month last year; the year-to-date figure is 3.44 per cent higher than the same period last year.

An important article to read!!! Do you really want to buy a grow op??

Warning over former grow-op homes

Homes that have been used for growing marijuana are becoming more difficult to buy and insure.
The Financial Post reports that mortgage lenders and insurance companies are increasingly declining applications for properties that have been used as grow ops due to the potential damage to the property.
Mould in the walls and chemicals that have permeated carpets and walls can cause costly issues and buyers may find that insurers and lenders insist on expensive tests before agreeing to proceed.
Brokers report that lenders will often refuse a loan even where there has been a single marijuana plant in the property and that, along with the potential damage, lenders are concerned that a criminal past of a property could affect its future resale value.
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How will I know the property I’m buying is a former grow-op?

In British Columbia, the property disclosure and/or MLS listing will indicate the property has been a former grow-op. Not all provinces in Canada require a property disclosure. Ask Team Penley McNaughton, your trusted Realtors, who will research the property and help find out if it was a former grow-op.

Where can I get a mortgage for a former grow-op?

The truth is, not very many places.
Over the past few years the majority of lenders in Canada no longer finance former grow-ops. There’s a good chance that if you walk into your local bank branch they’ll turn you away. There is only a handful of lenders left that will even consider lending on a former grow-op and for the most part are made up of local Credit Unions.
Since there are fewer mortgage financing options for a former grow-op, be prepared to potentially pay higher rates at origination and renewal. Make sure you thoroughly review the terms & conditions of the mortgage and make sure they fit with your current and long-term goals for the property.
While you might be getting a “deal” on the purchase price of a former grow-op, you may find it ends up costing you more in the long run since you are pigeon-holed into one lender.

When will a lender loan on a former grow-op?

Lenders will only provide financing to a former grow-op if it has been fully remediated. In British Columbia whenever a property disclosure and/or MLS listing indicates that a home has been declared a grow-op, lenders will require a satisfactory Phase 1 Environmental Assessment and a re-issued occupancy permit by the applicable municipality.
If you are thinking of purchasing a former grow-op, the listing REALTOR should have both on hand. Ask to see them. Without both a satisfactory Phase 1 Environmental Assessment and occupancy permit in place you will not get a mortgage.

How does buying a former grow-op affect value?

Since former grow-ops were once a hazard to the surrounding area they can contribute to a decline of the market value of the property.

Should I have other concerns when buying a former grow-op?

Absolutely! Since the property was once used for criminal activity you need to aware that your property may still be viewed as such by other criminals, and you may be more susceptible to home invasions and break & enters.
– See more at: http://www.rew.ca/news/think-that-former-grow-op-is-a-deal-think-again-1.1342233#sthash.Iss7FAX2.dpuf