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Sharon Gregresh

REALTORS® recognize Conservative Party’s first-time homebuyers tax cut
REALTORS® welcomed the recent announcement by the Conservative Party of a proposed tax credit for first-time homebuyers for intended application against closing costs of the purchase of a home.
“The issue of affordability is one that REALTORS® constantly monitor, and we welcome this initiative,” says the President of CREA, Calvin Lindberg. However, REALTORS® believe that the changes to the existing, well known Home Buyers Plan that CREA has been advocating for several years will also be an effective way to address the issue of affordability for first-time buyers.
CREA proposes that the federal government raise the maximum withdrawal limit in the Home Buyer’s Plan from $20,000 to $25,000. The HBP is a unique program that encourages savings, maximizes down payments and helps first time homebuyers minimize debt over time. The current withdrawal limit has not been changed since the program was introduced in 1992. In 2007, using the HBP, nearly 105,000 Canadians borrowed more than $1.2 billion from their personal RRSPs to use as a down payment in the purchase of their first home.
“Research has shown that, despite their enthusiasm for home ownership, first-time buyers, especially younger Canadians, find it a real challenge to finance their first home,” says Mr. Lindberg. “We welcome any initiative that helps these buyers.”

Gov. of Canada wil no longer back 0% down or 40 year mortgages!

Here is an article which was posted in the Globe and Mail. As of October 15th 2008 CMHC will no longer offer the 0% down or 40 year amortization programs. This is very unfortunate as both of these programs are very popular, especially among first time buyers. It sounds like CMHC is also going to increase their standards for documentation and credit scores. I will keep you posted as more becomes known about these changes. If you know of anyone that plans on using either of these programs in order to qualify for a mortgage, please pass this message along to them as they will need to buy before the fall in order to utilize these great programs. If you have any questions about these changes, please phone/email me!Globe and Mail Update, Reuters July 9, 2008 at 4:36 PM EDT OTTAWA — The federal government says it will no longer guarantee 40-year mortgages, one of a handful of measures aimed at guarding against a U.S.-style housing bubble.The Finance Department said Wednesday in a news release that the government will guarantee no mortgages with durations longer than 35 years. The government also will demand a minimum down payment equal to 5 per cent of the value of the home."Today's announcement marks a responsible and measured approach by the government to ensure Canada's housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada," the Finance Department said.The government hastened to emphasize that Canada's housing and mortgage markets were performing much better than in the United States.Canadian housing prices are in line with economic factors such as low interest rates, rising incomes and a growing population and the demand for residential housing remains buoyant at more than 200,000 housing starts a year, it said.The percentage of bank mortgages in arrears is also stable at 0.27 per cent, the lowest levels experienced since 1990 and well below the highs of 0.65 per cent in 1992 and 1997. "The historically prudent and cautious approach taken by Canadian financial institutions to mortgage lending, combined with a sound supervisory regime, has allowed Canada to maintain strong and secure housing and mortgage markets," it said.It nonetheless noted "accelerated financial innovation" in the mortgage markets since the fall of 2006, for example, allowing loans up to 100 per cent of the value of the house and increasing amortization periods to 40 years from 25 years.The government will now require a consistent credit score for mortgages it backs, and a minimum level of loan documentation standards to ensure evidence of the reasonableness of property values and the borrowers' income. In addition, government guarantees will not be allowed for high-ratio mortgages where amortization is not required in the first few years – e.g., mortgages that begin with interest-only payments.Finally, it will set a maximum of 45 per cent on a borrower's debt-service ratio – the proportion of gross income that is spent on debt service and housing-related fixed or essential payments.

Grants for Secondary Suites in the City of Edmonton

Secondary Suites
Grants are available, through the City of Edmonton, to homeowners wanting to build secondary suites or upgrade existing suites in their home. Homeowners can apply for a Capital Grant from the City of Edmonton to assist with the development of a secondary suite or to upgrade an already existing suite in their home.
For more information about grants available to homeowners or the criteria to qualify, visit the City of Edmonton’s web site, click on the Secondary Suite link on the left side of the screen to learn more about the program and the grants available.

Buyer‘s Market, Sellers Market, Stabilization How do you make sense of it all? How does one get their home sold for top dollar in any market place?

Traditional approaches would have real estate professional doing a comparative market analysis (CMA) of your home by comparing its features to other similar homes and setting a price that seems comparable. This approach on its own does not usually work (it is only the first step in the equation). The second step would be to pin point the sellers motivation. The third step would be to price the home right in the current economy which has an ever-changing market place. If you are selling your home it is crucial to Price your home according to the number of buyers and sellers entering the market place. The Property Fusion Team looks very carefully at the absorption rate within the market place when working with a seller to market their home.
The use of Absorption Rate Pricing will help get the best possible price for your home in any given market place. Absorption Rate Pricing is simply the mathematical relationship between Supply and Demand.

A normal or balanced market place will exist when the Absorption Rate is at 5-6 months.
A sellers market will exist when the Absorption Rate is between 0-5 Months.
A buyers market will exist when the Absorption Rate is at 7 + Months.

Today’s market place within the Edmonton Region is at an absorption rate of 6.78 months Based on the number of sales in June 2008 and the Current active listings.

In June 2008 the Realtors Association of Edmonton recorded
493 Residential Condo Sales
10 Vacant Lot Sales
1316 Residential Sales (Non Condo)
211 Rural Sales
33 Mobile Sales
For a Grand Total of 2063 Sales (Calgary Recorded 2491 Sales)

As of July 12, 2008 the Realtors Association of Edmonton has 14,307 active listings in all categories*. (*Non Commercial) (Calgary has 14,317).

June 2008 saw 2387 residential properties expire from the Edmonton Market, and Calgary's Market had 2301 residential properties expire.

If you are thinking of selling your home or have suffered an expiry and would like a demonstration on how using Absorption Rate Pricing can get your home SOLD quickly and for top dollar in any market place please contact us at sell@propertyfusion.ca or give us a call at 780-702-9999.

Gov. of Canada wil no longer back 0% down or 40 year mortgages!

Here is an article which was posted in the Globe and Mail yesterday. As of October 15th 2008 CMHC will no longer offer the 0% down or 40 year amortization programs. This is very unfortunate as both of these programs are very popular, especially among first time buyers. It sounds like CMHC is also going to increase their standards for documentation and credit scores. I will keep you posted as more becomes known about these changes. If you know of anyone that plans on using either of these programs in order to qualify for a mortgage, please pass this message along to them as they will need to buy before the fall in order to utilize these great programs. If you have any questions about these changes, please phone/email me!Globe and Mail Update, Reuters July 9, 2008 at 4:36 PM EDT OTTAWA — The federal government says it will no longer guarantee 40-year mortgages, one of a handful of measures aimed at guarding against a U.S.-style housing bubble.The Finance Department said Wednesday in a news release that the government will guarantee no mortgages with durations longer than 35 years. The government also will demand a minimum down payment equal to 5 per cent of the value of the home."Today's announcement marks a responsible and measured approach by the government to ensure Canada's housing market remains strong and to reduce the risk of a U.S.-style housing bubble developing in Canada," the Finance Department said.The government hastened to emphasize that Canada's housing and mortgage markets were performing much better than in the United States.Canadian housing prices are in line with economic factors such as low interest rates, rising incomes and a growing population and the demand for residential housing remains buoyant at more than 200,000 housing starts a year, it said.The percentage of bank mortgages in arrears is also stable at 0.27 per cent, the lowest levels experienced since 1990 and well below the highs of 0.65 per cent in 1992 and 1997. "The historically prudent and cautious approach taken by Canadian financial institutions to mortgage lending, combined with a sound supervisory regime, has allowed Canada to maintain strong and secure housing and mortgage markets," it said.It nonetheless noted "accelerated financial innovation" in the mortgage markets since the fall of 2006, for example, allowing loans up to 100 per cent of the value of the house and increasing amortization periods to 40 years from 25 years.The government will now require a consistent credit score for mortgages it backs, and a minimum level of loan documentation standards to ensure evidence of the reasonableness of property values and the borrowers' income. In addition, government guarantees will not be allowed for high-ratio mortgages where amortization is not required in the first few years – e.g., mortgages that begin with interest-only payments.Finally, it will set a maximum of 45 per cent on a borrower's debt-service ratio – the proportion of gross income that is spent on debt service and housing-related fixed or essential payments.

Article Provided by:
Natalie Wellings, Mortgage Associate
River City Financial Services
12650-151 Avenue, Edmonton, AB T5X 0A1
Phone:1-780-722-6287Fax: 1-866-322-0592
Email: natalie@youredmontonmortgage.com
Website: www.youredmontonmortgage.com

Never been a better time to buy a home, says REALTORS® Association

Monthly Statistics
Quarterly Statistics
Edmonton, June 3, 2008: Housing prices have been stable for five months, mortgage rates have dropped this year and there is overwhelming choice of homes currently available in all price ranges. All these factors add up to an ideal market place for first time or move up home buyers.
“Our members report that the market is very active with sales just slightly below the normal level,” said Marc Perras, president of the REALTORS® Association of Edmonton. “Buyers are optimistic about their future and conditions for home buyers have not been better in recent years. I urge everyone to contact their REALTOR® and explore the many housing options available to them.”
The sales-to-listing ratio in May was 42% with 4,294 homes added to inventory on the Edmonton Multiple Listing Service® and 1,821 homes sold. May sales exceeded same month sales in 2003 and 2004 but were below May sales for 2005-2007 when the market was super-heated. At the end of May there were 11,006 residential properties available on the MLS® in the Edmonton area. That is up 400 properties from a month ago and two and a half times the inventory of a year ago. At current sales volumes there is a six month supply; twice the normal supply.
Overall, the average price for all types of residential property was up 1% at $340,499 when compared to April, and down just 4% from a year ago. Single family dwellings sold on average* for $383,167 in May down three-quarters of a percent ($2,866) from the previous month. Condos sold on average for $260,837, an increase of 1.5% ($3,890) from last month. Duplexes and rowhouses sold during May were priced 4.6% higher at $330,451 on average.
The average days on market was just 53 days; up one from April. Total residential sales were $620 million for the month and total year-to-date MLS® sales were $2.98 billion after five months.
“The year-to-date average residential price is up 1.6% from the same five month period last year. I can see prices continuing to rise,” said Perras. “I am sticking with my forecast for a 4% price increase through the year for both single family and condo residences.” Consumers are encouraged to look up home buying tips and checklists at howrealtorshelp.ca or ereb.com web sites.
http://www.ereb.com/MarketActivity/June.html

Second consecutive record for new MLS® listings in May

The number of new listings of homes for sale on the Multiple Listing Service® (MLS®) in Canada’s major markets set a second consecutive monthly record in May 2008, according to statistics released by The Canadian Real Estate Association (CREA).
Record numbers of new listings are creating more balanced resale housing markets in many major centers. Nowhere has this trend been more evident than in Regina and Saskatoon. These were the tightest of Canada’s major markets at the beginning of the year, but the combination of a surge in new listings and slowing sales activity put them among the most balanced of major resale housing markets in May. A similar but less pronounced trend also pushed Vancouver’s resale housing market into a more balanced position in May. These markets joined Calgary, Edmonton and Windsor as the most balanced major markets in the country.
“The resale housing market has evolved in just a few short months,” said CREA Chief Economist Gregory Klump. “The record number of new listings means more opportunities for buyers.”
New MLS® residential listings in Canada’s major markets numbered 54,029 units on a seasonally adjusted basis in May 2008 – the highest level on record. This is an increase of 2.2 per cent over the previous peak reached in April.
The new record resulted largely from record or near-record numbers of new listings in Vancouver, Victoria, Regina, Saskatoon, Toronto and Ottawa. This more than offset a monthly decline in new listings in Edmonton and Calgary, where the number of new listings continued retreating from their peaks in March.
Seasonally adjusted MLS® sales activity in Canada’s major markets edged lower by 0.5 per cent month-over-month to 26,902 units in May 2008. The small monthly decline resulted mostly from fewer transactions in Vancouver, Regina and Saskatoon. A monthly decline in activity in these cities offset an increase in transactions in Toronto, Ottawa and London & St. Thomas.
By contrast to the easing trend in many major markets, MLS® home sales activity in Ottawa reached new heights in May. Transactions for the first five months this year also continues to run ahead of activity for the same period in any other year in Regina, Thunder Bay, and Newfoundland & Labrador.
Reflecting an increasingly balanced housing market, the major market MLS® residential average price rose just 1.1 per cent year-over-year to $337,071 in May. While this is a new record for average price, it is the smallest year-over-year price increase in over seven years.
“Unlike the situation in the United States, re-sale housing prices in Canada continue to increase,” says the President of The Canadian Real state Association, Calvin Lindberg. “The evolving market, however, means the increase in average price is below the double digit percentages reported during the record-setting years of 2006 and 2007.”
New records for MLS® residential average price were reached in a number of major markets in May, including Vancouver, Victoria, Winnipeg, Hamilton-Burlington, Kitchener-Waterloo, Thunder Bay, Ottawa, Saint John (NB), Halifax-Dartmouth, and St. John’s (NF).
“Rising food, fuel and home prices are denting consumer confidence,” said Klump. “Increasingly cautious homebuyers may keep listings on the market longer before being sold, which increases the importance of realistic pricing." (CREA 13/06/08)

Bank Holds Interest Rates Steady

The Bank of Canada held its benchmark overnight lending rate steady at three per cent on June 10th. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 3.25 per cent.
The Bank’s decision to hold interest rates steady was aimed at fighting inflation. Financial markets widely expected the Bank rate to be cut a further one-quarter of a percentage point, while hedging bets due to soaring food and energy prices.
“The Bank wants to prevent inflation expectations from getting away,“ said CREA Chief Economist Gregory Klump. “Interest rates will be on hold over the summer, giving the Bank time to judge the effect of previous interest rate cuts.” To stabilize credit markets in the aftermath of the U.S. subprime mortgage market meltdown, the Bank cut the overnight lending rate by one and a half percentage points from December 2007 to April 2008.
The Bank recognized that the U.S. economic slowdown was pummeling Canadian manufacturing exporters, but tempered its concerns: “Although the composition of U.S. growth has not been favourable for demand for Canadian goods and services, overall, global growth has been stronger and commodity prices have been sharply higher than expected.”
The Bank also hinted it may lower the bar it sets for potential economic growth, saying “the risk remains that potential growth will be weaker than assumed.” Lowering its estimate for potential growth may prompt the Bank to raise interest rates to keep inflation contained.
When the Bank lowered interest rates on June 10th, the advertised five-year conventional mortgage rate stood at 6.65 per cent. This is just under one half of a percentage point below where it stood a year ago. Competition among mortgage lenders remains stiff, but discounts off advertised mortgage interest rates have shrunk because the U.S. subprime mortgage meltdown and resulting global credit crunch have raised banks’ cost of funds.
“National sales activity will be down from last year’s record due to rising prices,” said Klump. “Interest rates have bottomed out, so homebuyers going with a variable rate mortgage would be well advised to get pre-approved now before interest rates climb.” (CREA 10/06/2008)
Created: 06/10/2008

How the real estate went from boom to buyer’s market in a blink of an eye

The experts explain city house prices
Bill Mah, The Edmonton Journal

Published: Tuesday, May 06

EDMONTON - If you were selling a “typical” home this time last year, chances are it lasted 22 days on the market before someone bought it.

You got $413,488 for it.

That was then. This is now.

Selling a typical home these days? Chances are you’ll wait, and wait, for 52 days before selling.

And the payoff? About $28,000 less for your single-family detached house than if you’d sold it last year — an average of $386,033, according to monthly figures for April released Monday by the Realtors Association of Edmonton.

Condos, duplexes and rowhouses also dipped in average price, and thickets of “For Sale” signs seemingly stand outside every multi-family development.

So what happened? What’s a seller or a buyer to do? Where does it go from here?

We asked three Edmonton housing experts for answers: Richard Goatcher, Edmonton senior market analyst for Canada Mortgage and Housing Corporation; Pat Adams, a condominium builder and president of the local branch of the Canadian Home Builders’ Association; and Marc Perras, president of the Realtors Association of Edmonton.

To read the entire article, visit

http://www.canada.com/edmontonjournal/news/local/story.html?id=476af5ab-d874-4da3-805f-ec424077f3c9&k=31125

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