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18 August 2010

July Stats are down

Yesterday, CREA, (Canadian Real Estate Association), released its stats for the month of July, and as expected the drops in real estate activity are now a reality. There is no shortage of statistics trying to rationalize or explain these drops. But I have to say that I was really impressed with how quickly CREA made the following video available to the public.
http://www.youtube.com/watch?v=qapXxM5p4hI

This was by no way a surprise taking into account the changes in lending policies, and the implementation of HST on July 1st that the figures are showing significant drops in BC and Ontario, the 2 provinces where HST were launched. A very large percentage of Real Estate transactions that would have normally closed in the month of July were pushed forward to June to “beat the HST”, pumping up June’s numbers clearly at the expense of July’s figures. But with that being said, that excuse really only works for July but what about August and September’s figures? It is important to stay informed as to what is happening in the market, I think this video is an excellent realtor’s perspective. The good news for all home owners both current and potential future homebuyers, mortgage rates are still dropping. Making home ownership even more affordable. My Best 5 year fixed has now gone to 3.84% I have an incredible 3 year fixed rate at 2.90% And variable rate is still holding at PRIME -.70% or currently 2.05% 1. So what does this all mean ? Is the sky falling? No I don’t think so. I just think we are seeing some adjustments from a really busy June. 2. Do I see price drops in the future? Yes for some homes, I think the higher priced homes are going to see the greatest percentage drop. With many looking to down size, and with the new tighter lending policies with CMHC there is a greater demand being placed on lower priced homes. 3. I also think sellers have to become a little more realistic with their listing prices, every one wants to get the highest price for thei r house, but you need to understand that the market is clearly shifting to a buyer’s market, and when this happens, multiple offers are no longer going to be driving prices skyward. Bottom line for the first time homebuyers, with these low mortgage rates, you can still purchase today and pay a lower monthly payment then if you rent the same house. So if you are thinking about buying a home, or maybe you would like to get rid of the one you currently have, please give me a call. For the current mortgage holders, both fixed or variable rate clients take a serious look at my 3 year mortgage rate product (2.90%), it could be a very good solution for these volatile times. I understand how some are having a hard time with going from 2.00%- 2.45% variable to almost 4.00% fixed, this 3 year fixed is great way to get the protection from any further interest rate increases (current Variable rate clients), or to significantly lower your current fixed rate which will lower your payment and save you $1000’s in interest costs. Don’t wait too long, REFI NOW.

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