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| David Burland
Realtor
Johnson Associates Real Estate Ltd., Brokerage | |
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| Friday, 08 January 2010, 05:42:00 PM | What’s new in Real Estate
2009 was a most remarkable year! In the last quarter of 2008 every media outlet was predicting the end of the economic world as we knew it, the big three automakers were in danger of going broke, and we lots of bad news about the American economy.
In Canada, folks stopped buying and selling properties, values reset as much as 12 to 15 percent lower than 2007 levels. There was a large inventory of homes for sale over the winter, by the time spring was underway people had grown tired of the bad news and went back to their normal lifestyle. Record low interest rates stimulated sales and things started to change.
By the time summer had drawn to a close things had really changed! There was a shortage of properties for sale, Many new home builders had slowed their activities and the resale market has become very tight, to a point where well priced listings are attracting multiple offers, that is remarkable in the late fall and winter market.
The spring market will see local values above the record setting 2007 values.
There is no thought that there will be smooth sailing in 2010 there are plenty of signs that things will change.
1,The most publicized change is the HST combination GST/ PST tax that will add cost to the purchase of real estate. Folks will be in a hurry
2,The Canadian chartered banks will probably start to raise interest rates by mid-year.
3, CMHC our provider of mortgage insurance, will likely change their rules by removing the 35 year amortization period and move it back to 25 years. CMHC may also move the minimum down payment from 5% to 10%, first time borrowers will be asking mom and dad to dig a little deeper.
Folks will be in rush to capitalize on their gains, and they will be well advised to do it before the changes take effect.
Call me today lets talk Real Estate!
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| Friday, 08 January 2010, 05:38:43 PM | | /Users/david/Desktop/What’s new in Real Estate.docx | |
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