Mortgages, prices and real estate trends to watch

It was widely thought that the Bank of Montréal (BMO) would discontinue its 2.99% fixed rate on five-year mortgages as advertised yesterday. However, The Bank Montréal now says it will extend the rate until April 19. Most of the other major banks raised their own rates effective on March 29, which means BMO is now offering virtually the same product for 50 basis points less. Of course, as mentioned last week, banks and other lenders will always hold the rate for pre-qualified customers for 90 days. RBC holds the rate for 120 days.

If shopping for a new house this spring, visit your bank or other lender as soon as you can. This should be your first step. You can save yourself a lot of money (or buy a bigger house).

Unfortunately, if you’re buying a condo it might be harder and harder to qualify. The Banks are not only tightening their lending criteria for condominium buyers, they are  making it more difficult for builders and developers to get cash. The banks are requesting higher percentage of pre-sales and larger deposits from condominium builders. Some banks have been asking construction firms to put more equity into new projects. Other lenders have been raising the percentage of the the number of units that have to be pre-sold and demanding higher deposits as conditions for financing. Some of the country’s biggest banks have completely stopped lending to less established real estate developers.

Finance Minister said as recently as March 5 that he is concerned that some condominium markets are over heated. These measures are all aimed at cooling down the market, creating a soft landing, (instead of popping the bubble).

Across the country, albeit slower than last year house prices continue to rise. Year over year in January, Toronto’s was up 9.9%, Calgary up 1.6%, Vancouver up 7%, Montreal up 5.6%, Ottawa 5.4% and Halifax 1.8%.

Building Around Kitchener Waterloo

We live here so we don’t really notice it but visitors from out of town always comment on how much building is going on in Kitchener Waterloo. At 260-264 Regina Street North it looks like we might be getting the one of the ugliest housing developments yet. Check out this perspective drawing, map and site plan from our friends at Wonderful Waterloo. If you’ve been up to Rim Park recently you’ve noticed the townhouses going in beside the soccer fields. The developer has an unusual marketing style.

New Listing

We have a new listing in Kitchener’s East Ward. If you’re looking for a beautiful and fully updated home on a leafy street in Kitchener’s East Ward, this is truly a unique opportunity. 241 Simeon Street, Kitchener. Open House Sunday April 1st, 2:00-4:00pm

Links I like

Which is better, a 10-year or a 5-year mortgage 

How to renegotiate your mortgage

Pub owner buys Forwells

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This week in KW real estate:

March 24

March 17

March 10

March 3

Filed under: general news, interest rates, mortgage, open house, this week in real estate by Keith Marshall
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Besides Northdale neighbourhood, Mortgage rates were the big news in real estate last week (they dropped). Some statistics were released as well and they show that all is well in our local and national real estate markets.

Mortgage Wars Round 2: BMO with 10-year fixed rate.

This week the big banks relaunched the mortgage war. The Bank of Montreal (BMO) returned, after a two week break to the historic Canadian low rate of 2.99% for a five-year home loan, a drop of 50 basis points. BMO also rolled out a 10-year mortgage at 3.99%. Both rates are fixed (not variable) and have 25-year amortizations. This is the first time BMO has offered a 10-year fixed mortgage at such a low interest rate.

If you’re shopping for a new home, this rate should hold until the last week of March. Most banks and other lenders will pre-approve you at a guaranteed rate for 90 to 120 days. If you’re buying a house this spring, my advice would be to talk to your lender next week.

House prices and market preditcions

Statistics Canada said the national average price of new houses rose 0.1% in January from the previous month. In January 2010 over January 2011 prices, there was a 2.4% gain, similar to the 2.5% increase posted between December 2010 and December 2011. Average home prices rose 4.3% in 2011, but cooled considerably in the final quarter, rising just 1.1%  from the previous year.

The prediction for the next two years is that the housing market will continue to cool off and prices should remain stable. Prices will dip by about 1% this year and then rise by the same in 2013.

At the same time, because of or historically low interest rates, the number of home resales are expected to rise by .3% this year.

In Waterloo Region, sluggish condo and semi-detached homes sales pushed down overall house sales by 2.2% compared to February 2010. The number of detached homes sold however were up by 3.5%. The average price for all types of housing increased 6.8% to $307,989 from a year ago and the median price rose to $276,000 from $266,063.

I think its safe to say that with one of Canada’s strongest and diversified local economy, we’ll continue to exceed national rates of growth in the housing market.

Northdale – Waterloo’s troubled student neighborhood

Waterloo city council unanimously voted to stop all new development in Northdale as it reviews community concerns about the boxy apartment buildings crammed with student bedrooms and little else. The neighborhood in the past five years has become overbuilt and has not evolved in the way the Universities and the City of Waterloo had intended. The plan was to allow apartment buildings around the edges of Northdale while preserving suburban homes in the middle. The new plan calls for an end to suburban homes and front yards, to be replaced by stylish townhomes and apartments built to the edge of the street.

365 Business Network

The Agents of Change with our partners have started a unique and popular network group 365 Business Network. Meeting once monthly, the 365 Business Network is an extension of our community site 365 things to do in Kitchener Waterloo. One of the things that makes living in Waterloo Region great are the wonderful businesses that are here. 365 Business Network aims to be the place where we can get to know each other better and promote our businesses through building strong connections. If you do business in Kitchener Waterloo, you should check it out.

Although we haven’t even had our first meeting yet (March 27, 2012) our network has already grown to over 100 members. Join the conversation. Sign up on LinkedIn

Two condos, two Open Houses

122 Mansion Street, Kitchener is an executive town home located in the heart of Kitchener’s East Ward. This beautiful and spacious condo townhouse will be open to the public for viewing this Sunday 2:00-4:00pm. The Kitchener Waterloo real estate market has some great condos and this is one of them!

29-49 Cedarwoods is a well located and desirable condo close to Fairview Park Mall. It’s freshly painted and has a shiny and new engineered hardwood floor. This beautiful and spacious condo townhouse will also be open to the public for viewing this Sunday 2:00-4:00pm.

Links I like

The compromises first time home buyers make.

You can’t park on your Kitchener front lawn

Home ownership is getting more affordable

Why Ira Needles needs widening

Empty closets sell houses

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This week in KW real estate:

March 3

February 25

February 18 

February 11

Filed under: Around Kitchener Waterloo, neighborhood update, open house, this week in real estate by Keith Marshall
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The Kitchener Waterloo real estate market is humming along nicely, so it was a busy week around the offices of KWhomesandhouses.com. We’re thinking because we really didn’t have winter, our Open House attendance has been way up so far this year as has our general sales activity – request to show, telephone inquiries…

GO Train

Cambridge is still a little miffed that Kitchener got the Go Train and Cambridge will have to wait another 15 to 25 years before they link up too. It’s been 40 years since a passenger train left the Malcolm Street station.

Breslau’s Hopewell Heights will almost certainly get a GO Train station before Cambridge. There are two major housing developments planned for area’s north and south of old Breslau.

The housing market won’t crash

According to a Reuters’ poll, the government of Canada is doing everything but raising the interest rates to ensure Canada’s housing market will not crash. If you’re thinking of buying a house you might want to get your butt in gear though because our Finance Minister Jim Flaherty will likely be making it more difficult to get a mortgage this year. The budget, which is expected in late March is expected to tighten the requirements for government backed insured mortgages.

Flaherty could also raise the minimum down payment to buy a home from the current 5% or reduce the maximum amortization period from 30 years.

365 Business Network

The Agents of Change with our partners have started a unique and popular network group 365 Business Network. Meeting once monthly, the 365 Business Network is an extension of our community site 365 things to do in Kitchener Waterloo. One of the things that makes living in Waterloo Region great are the wonderful businesses that are here. 365 Business Network aims to be the place where we can get to know each other better and promote our businesses through building strong connections. If you do business in Kitchener Waterloo, you should check it out.

In related news 365 things to do had a surge of visitors last month and recently went over 1000 facebook likes.

Two condos, two agents, one Sunday

122 Mansion Street, Kitchener is an executive town home located in the heart of Kitchener’s East Ward. This beautiful and spacious condo townhouse will be open to the public for viewing this Sunday 2:00-4:00pm. The Kitchener Waterloo real estate market has some great condos and this is one of them!

29-49 Cedarwoods is a well located and desirable condo close to Fairview Park Mall. It’s freshly painted and has a shiny and new engineered hardwood floor. This beautiful and spacious condo townhouse will also be open to the public for viewing this Sunday 2:00-4:00pm.

Links I like

I read a lot of news every week about Kitchener Waterloo real estate, real estate trends, mortgage interest rates, home design, cities, transportation social economic trends… so I’m adding links I like to my weekly updates.

Waterloo’s rusty bell

Car free Sundays 

Giving up on Baltimore’s neighbourhoods 

Living with mom and dad

No school time change 

The psychology of home

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This week in KW real estate:

February 25

February 18 

February 11

February 4

Filed under: 365 things to do in Kitchener Waterloo, Around Kitchener Waterloo, Buying Real Estate, condo, editorial, for sale, interest rates, mortgage, open house, this week in real estate by Keith Marshall
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King and Louisa Development

Kitchener Waterloo saw a lot of Real Estate news this week. A new 8 storey multi-residential building and a 3 unit multiple dwelling unit is being planned for the corner of King and Louisa Streets in Kitchener. This is consistent with our mixed-use and intensification objectives. I predict we’ll be seeing a lot more of this type of project along the future LRT route.

Spur line bike path

The development of a spur-line trail is the region’s top priority for off-road pathways. The trail will run from Regina Street in Waterloo to Wilhelm and Weber streets in Kitchener. It will cost about $2.5 million. There already exists a path along side the tracks but this new trail will encourage more foot traffic and cyclists  as it will connect to the Iron Horse Trail and Laurel Trail in Waterloo and to the new multi-model Hub in Kitchener.

Former car dealership site might be redeveloped for residential use

Most of us remember the site as Gary Stockie’s GM dealership. But that closed down in 2009. Then Mitsubishi moved in. But now there is speculation that a major change in land use could be coming to that section of Ottawa Street (between King and Weber) near downtown Kitchener. The neighbouring Olivet United Church has also been approached about selling its land. this all looks good for this long neglected part of Kitchener.

Mansion Street – Open House

122 Mansion Street, Kitchener is an executive town home located in the heart of Kitchener’s East Ward. This beautiful and spacious condo townhouse will be open to the public for viewing this Saturday and Sunday 2:00-4:00pm.

Come out and see us.

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This week in KW real estate:

February 11

February 4

January 27

January 20

Filed under: Around Kitchener Waterloo, for sale, open house, real estate, this week in real estate, Uncategorized by Keith Marshall
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Stated Income Home Buyers hit first

Last week in Kitchener Waterloo real estate’s weekly look at the housing market in Canada and in Kitchener Waterloo, I reported that the the mortgage rules were about to change. They did.

CIBC is the first bank to no longer accept new applications from so-called “stated-income” homebuyers. If other banks and mortgage brokers follow suit, it will become difficult for self-employed, new immigrants and higher-risk borrowers to get mortgages.

There is a lot of noise about Canada being at risk of a U.S. subprime housing crisis. The Post said that the housing bubble is really a balloon and the banks, government and mortgage companies are finding ways to let the air out slowly.

CHMC Hits Lending Limit

One of the other ways to cool the housing market is by not guaranteeing mortgages. The Canada Mortgage and Housing Corporation will be cutting back on the number of mortgages it insures. The Crown corporation has almost reached the $600-billion lending cap imposed by the federal government. CMHC gave no indication whether it would seek an increase in its limit.

Financial institutions are required to have mortgage-default insurance when a consumer has less than 20% equity. The CMHC takes care of the majority of these. (Genworth Financial does too).

According to Genworth, Toronto and Vancouver may see some market corrections this year but states that it will not be an “abrupt correction, but more of a soft landing”.

Prices Rise in KW Cambridge

Here in Kitchener Waterloo, house prices increased by a whopping 12.9% in January (over January of a year ago).

The average sale price was $315,932. (In January 2010 it was $279,957). These numbers include all units sold (including condos). The average price a detached home rose 14.5%, to $361,470. Bank regulators have been taking aim at condo investors, and I predict we’ll see the air go out of this market first.

House prices also increased in Cambridge last month, but at a more moderate rate.

Open Houses

This weekend is Superbowl Sunday so Alasdair and I are taking the day off. We will be holding open houses today 2:00-4:00pm. Alasdair will be at 29-49 Cedarwoods Crescent in Kitchener (behind the Fairview Park Mall. I’ll be at my favorite Eastbridge listing – 639 Bonavista Drive, Wateloo.

Come out and see us.

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Filed under: condo, for sale, investing in real estate, mortgage, open house, real estate trends, this week in real estate by Keith Marshall
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