Happy New Years

Wishing you and your families all the best for 2010. Drive safely this holiday season. We are off to Michigan to party with the Wellingtons' in Midland and see if the Canadian Juniors can beat the US.

Mortgage Insurance vs Life Insurance

Just over Christmas I was talking to a relative about their new home and they told me they signed up for Mortgage Insurance, through the TD Bank. I thought everyone knew about not getting this type of Insurance though the banks, but I guess not. So once again just to remind everyone of the problems you can have with mortgage insurance, here is a link to the CBC Market place show, about the problem. Please pass this around to your family and friends, so they don't get caught in the same mess. Happy New Years to you and your family!
http://www.cbc.ca/marketplace/in_denial/

Merry Christmas to Everyone

Wishing you and your family all the best this Holiday season and may 2010 be the best yet.

Flaherty warns on mortgage rules

Finance minister tells CTV, Ottawa may raise minimum down payment for home buyers and reduce amortization period to stop some from taking on too much debt. CTV says Ottawa is considering raising the minimum down payment for home buyers as well as reducing the amortization period in order to stop some consumers from taking on too much debt. In an interview with CTV Question Period, to be aired next week, Finance Minister Jim Flaherty says the measures will be taken if there's evidence of excessive demand in the housing market. Flaherty says the new measures would target consumers “who are taking on obligations that they will not be able to handle in the future when the interest rates do rise.” He says the likely measures the government will take is to increase the size of the down payment from 5 per cent “to a higher figure” and to reduce the amortization period “from a maximum of 35 years to something less.” Those measures would increase the monthly payments, making it more difficult for some people to take on a mortgage and purchase a home, without having to increase the interest rate. Last week, the central bank warned that when interest rates rise to normal levels, up to 10 per cent of households could face difficulties in meeting monthly payment requirements.

Canadians Believe In Real Estate

Michael Polzler, Executive Vice President and Regional Director of RE/MAX Ontario-Atlantic Canada Inc. says that "amid one of the worst recessions since the Great Depression, the one safe harbour proved to be housing. Not stocks. Not bonds. Real estate. Why? The answer is really quite simple. Canadians believe in real estate.
Housing has proven itself a resilient and tangible investment that provides both a hedge against inflation and long-term appreciation. Buyers demonstrated their commitment en masse in 2009-taking advantage of rock-bottom interest rates and greater affordability levels-to drive housing sales and/or average prices to new heights. This year's real estate performance has been nothing short of remarkable.

The surge in sales has allowed residential real estate markets to play a key role in leading Canada out of the downturn. It is estimated that a total of $46,400 in ancillary spending are generated by the average housing transaction in Canada. With 465,000 resale homes expected to change hands by year-end 2009, that represents a $21.5 billion boost to the economy-not to mention the countless jobs and tax revenue housing supports. Going forward, the real estate sector is expected to have an even greater impact".

Canadian Sales are still strong

According to statistics released by The Canadian Real Estate Association, existing home sales activity remained upbeat in November 2009. The current strength of housing demand stands in sharp contrast to weak activity recorded one year ago.
A total of 36,383 residential properties traded hands via the Multiple Listing Service® (MLS®) of Canadian real estate boards in November 2009. Up 73 per cent from year-ago levels, activity was down just four tenths of a per cent from the highest level of activity for the month posted in November 2007. Home sales set new records for the month of November in Ontario and Quebec.

Work is Progressing on Main Street Grand Bend

The Main street of town is getting a major face lift and you will notice the difference this spring. Construction is suppose to be completed by Christmas, but there is a lot to do and the weather has to co-operate, which it has done so far! New street lights, Flower pots, benches and larger sidewalks will make the town look pretty fancy, even though there will be less parking.

Detached Home Starts Higher in November

New home starts were up in the London Census Metropolitan Area in November, according to preliminary figures released today by Canada Mortgage and Housing Corporation (CMHC). Total starts increased by 32 per cent due to a 58 per cent increase in single-detached starts compared to the same month in 2008. Year-to-date total starts were still down about 15 per cent.
“For the third consecutive month, single-detached home construction was up from its level a year ago,” said David Lan, CMHC’s London Market Analyst. “Construction outside of the city appears to be gaining momentum as well,“ added Lan.

The Condo Market is Hot in Toronto

Stefania Moretti, reported in the The London Free Press, that a new condo Development in the West Don Lands of Toronto, called the River City Project, are selling the units by having a lottery, to decide who has first dibs on floor plans and units! With Occupancy slated for 2011, there is a lot of demand for these moderately priced units. This past weekend in Vancouver a horde of home buyers stood in the rain for a chance to purchase condo units in a 26-story tower, to be built in the downtown area, which isn't scheduled to be completed until 2013. And in Toronto a few days earlier condo sellers enforced a chit system for real estate investors, to quell disputes over the chance to buy into the new downtown X2 Project, by Great Gulf Homes. Toronto agents have noticed a big time swing in the pre-sale market, comparable to 2007 levels. "Things are back to being as crazy as it ever was", said "Andrew La Fleur, of RE/MAX Condos Plus in Toronto, citing a combination of factors including record low interest rates and a return to the belief that real estate is a safe investment. With the renewed interest in the real estate Market in Toronto, I'm sure we will see the spin-off coming our way this spring, here in Grand Bend.

Townsend Meadows Units are ready

Ready for Christmas these Thedford units are almost ready for you to move into. Units 12 and 13 will be ready shortly with 2 bedrooms, 2 baths these units are just perfect. Check out the website at www.townsendmeadows.com

RE/MAX Housing Market Outlook for 2010

In the midst of one of the most tumultuous economic periods in recent history, residential real estate has proven to be a safe harbour, with sales and average price expected to post gains in most major Canadian cities in 2009, according to a report released today by RE/MAX. The RE/MAX Housing Market Outlook for 2010 examined residential real estate trends in 23 markets. The report found that sales are forecast to recover in almost all major centres by year-end 2009, led by an anticipated 45 per cent increase in Greater Vancouver. Eighty-three per cent of markets (19/23) are expecting sales to increase over 2009 levels while housing values are forecast to escalate in 91 per cent (21/23) of Canadian centres in 2010. The remaining markets will match 2009 levels. "2009 was without question the year of the house," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Real estate not only defied industry and analysts' predictions in 2009 -- it's performance went well beyond the realm of expectation by boosting consumer confidence levels and ultimately kick starting the national economic engine. While low interest rates were a principle factor driving home buying activity, no one can discount the value that Canadians place in owning a home."

Homes Sales for November still improving!

Last month, 584 homes exchanged hands in the jurisdiction of the London and St. Thomas Association of REALTORS®(LSTAR), a 51.3-per-cent increase over November 2008. However, November 2008 had an unusually low sales volume of 386, compared to 654 in 2007, 616 in 2006, 645 in 2005, etc. This anomaly explains the large percentage increase for November 2009. Year to date, sales are down 5.5 per cent overall compared to 2008. The average price for homes in LSTAR’s jurisdiction was $214,385, up slightly over last month. With the weather still holding out and the snow keeping away, sales here in the Grand Bend area have been brisk as well.