Housing Demand Perks Up

*Article courtesy of Heather Degraaf @ Scotiabank
Contact Heather for all your mortgage needs. 519-535-7890

Housing Demand Perks Up

After a seasonally uncharacteristic spring and summer slump, Canadian home sales appear to be stabilizing at a new lower, but more sustainable level. National MLS sales volumes increased 3% m/m in September, building on a similar gain in August. Sales activity is still down almost 20% y/y but the decline is accentuated by las August's record monthly sales pace. Two-thirds of local markets reported higher sales last month.

The moderate pickup in housing demand is being aided by lower borrowing costs. While policy tightening by the Bank of Canada has led to a modest backup in variable mortgage rates, fixed rates have come down across the maturity spectrum in recent months, mirroring the drop in bond yields. We expect interest rates will stay lower for longer, underpinning steady housing demand through the fall, contingent on at least a modest pace of job growth.

With new listings edging up only marginally last month, the new-listings-to-sales ratio edged down to 2.0. Meanwhile, the month's supply of active listings fell for a third consecutive month to 6.6. Both metrics suggest a more balanced national market. Sellers (and builders) in Canada remain highly responsive to underlying market conditions. Unlike in the United States, Canadian foreclosure rates are low and not a significant source of downward price pressure. New construction too is gradually moderating. As would be expected given generally balanced conditions, average prices are essentially flat (+0.2% m/m and -0.2% y/y). Prices were overbid last fall as buyers outnumbered sellers, but have fallen back to more reasonable levels.

While ultra-low interest rates remain highly supportive for the interest-sensitive housing market, moderate economic growth and hiring, debt-leery households and high home prices will keep many buyers on the sidelines for now. Look for a flattish fall national market from a sales and pricing perspective.







Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Great opportunity for a first time buyer or upgrading! - MLS 63-437 - 41 Canrobert St, - Move in Ready, only $189,900.

*hint* - click the underlined words for more detail!

This is a great 15 year old raised ranch located in a well established family friendly neighbourhood. It is located very close to parks and has quick and easy access to the major highways.

What more could you ask for? This sturdy, fully finished and move in ready home features a concrete foundation, 3 bedrooms (Master, 3rd Bedroom/Office, Nursery). and a full bathroom on the main floor, as well as main floor laundry, a spacious eat-in kitchen, and separate dining room. Plus a comfortable living room!

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Let’s not forget the nice two-tierd deck in your fully fenced back yard. This extremely well decorated home has plenty of space for your growing family, and is ready for quick possession! All appliances included. Be sure to check out the Virtual tour!

For Room Sizes and additional details, check out the Realtor.ca info page

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Bank of Canada keeps key rate unchanged

Reprinted courtesy of CBC NEWS

The Bank of Canada left its key overnight interest rate unchanged Thursday as it again warned that a high Canadian dollar poses a risk to economic recovery.

The target for the overnight rate will remain at 0.25 per cent. Economists had expected no change.

The central bank also reiterated its commitment to leave the key rate at that level through the middle of next year as long as inflation remains in check.

The central bank said growth for the remainder of the year will likely be higher than it forecast earlier this summer.

"Combined with recent information on inventory adjustments and automotive production, this suggests that GDP growth in the second half of 2009 could be stronger than the bank projected in July," it said in a release.

The central bank said it still expects inflation will remain low and will return to its two per cent target in the second quarter of 2011 "as aggregate supply and demand return to balance."

Government softens impact of HST on new housing

Reprinted courtesy of CREA


The Government of Ontario is proposing two measures that will soften the impact of the harmonized sales tax (HST) on new housing. The HST was introduced in the 2009 Ontario Budget.

Under the first measure, the province proposes to enhance the new home HST rebate so that it
would be calculated as 75 per cent of the provincial portion of the HST payable on the purchase
of a new home, up to a maximum rebate of $24,000. Under the government’s initial proposal only homes under $400,000 qualified for the 75 per cent rebate.

Similar to the enhanced new housing rebate, the province is proposing a rebate for new residential rental properties. Landlords who purchase new rental homes would be eligible for the rebate, calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new rental home, up to a maximum rebate of $24,000.

The province is also proposing HST transitional rules for new housing. Generally, as part of the
transitional rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.

For more information on the HST - click HERE

There you go - buy your new house before June 18, 2010 and save!

Announcing the launch of our amazing new website!

Woodstock/Stratford/St.Mary's is proud to announce the launch of our new brokerage website!

Check it out here -> Remax a-b Realty Ltd

Oxford County Affordable Housing Program

Just a quick reminder about the Oxford County Affordable Housing Program that’s being offered again to buyers who are currently renting. A few key highlights from the program are:

• 10% gifted down payment (non-repayable if they own the home for 20 years or more)
• Maximum combined household income cannot exceed $74,300
• The house must be new build and cannot exceed $189,498
• Not just for First Time Home Buyers, it’s available to anyone currently renting.

For More Info, Visit: www.county.oxford.on.ca/site/2738/default.aspx

First Time Home Buyers - What a GREAT time to buy!!

Are you thinking about buying your first home? Has the recent recession reduced home prices to the point that you're considering diving into the world of home ownership?

Now is DEFINITELY the time to act.

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Introduce you to a mortgage specialist. A friendly person, who will meet you in your home on your own terms to discuss your plans, and get a pre-approval.

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Assist through the process of making an agreement to purchase. Negotiating a purchase price that works for your budget, drafting conditions to protect you and your future investment, advising on aligning dates that work for you.

Recommending professional tradespeople to perform any services that you might require. As a real estate agent, a homeowner, and an investment property owner, I meet and use lots of Home inspectors, mortgage specialists, insurance agents, movers, cleaning services, plumbers, electricians, property maintenance, etc.

Show you how you can maximize your purchase and get thousands of dollars in government rebates for home renovations, deduct thousands of dollars from your income taxes, pay no land transfer tax, cash in your RRSP's tax free towards your downpayment, and benefit from historically low interest rates.

Respond very quickly to any requests you make. By embracing technology, I am equipped to receive your email, text message, and voicemail requests instantly and endeavour to always respond as soon as possible. Even if it's as quick as "Hey Bill, I got your Message. I'm on the 14th hole. I will respond to it as soon as I return to the office!"

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