Barry Klatt

403-271-0600
Barry Klatt
Office:403-271-0600
Fax:403-476-5236

Why Sign Up?

  • Save your Listing Searches
  • Email Alerts on new Listings
  • See new listings sooner
  • Tag your Favourites for later

Already A Member?

Calgary leads Alberta home prices

Calgary buyers are reaching deeper into their pockets for homes than their counterparts in Edmonton, says CMHC economist Lai Sing Louie.

In all forms of the Battle of Alberta, I fully admit to being a biased Calgarian. Whether it be the sports rivalry or nuances like who has better restaurants or more polite drivers, I’ll turn to the Stampede City 10 times out of 10.

So, it wasn’t a head-scratcher when I saw recent Canada Mortgage and Housing Corp. statistics point to a higher average price for single-family homes in Calgary than in our northern counterpart.

What’s worth noting is the widening gap between Alberta’s two biggest cities. In 2009, a few years into the economic downturn, the price difference seemed like pennies. Click Here

 

Table of Content:

Smart Investments

Experts List the Top Home Security Tips for the Holiday Season

'Plan before your party,' Alberta RCMP kick off holiday Checkstop campaign

Best of Google Maps "Street View"

Read full post

 

The Canadian Real Estate Association suggests Calgary's housing market has shifted from a position of balanced to a seller's market.

CREA's Chief Economist says while most regions in the country reported sales and prices declines last month compared to May, Calgary enjoyed gains. Gregory Klump says house sales in Calgary rose by half a percent in June compared to May and are running at their best level since June 2009.

Year over year, Calgary house prices are up almost six per cent, second only to greater Toronto.

Klump says they will need a few months of statistical data before passing judgement on the impact recent mortgage rule changes are having on the market.

 

Source: http://www.660news.com/news/local/article/383117--calgary-s-real-estate-market-bucks-national-trend

Read full post

By Michael Babad, Globe and Mail


Flaherty moves on mortgages


The Canadian government continues to move aggressively to cool down the housing market amid fears in some quarters of a bubble in the making.

 

As The Globe and Mail's Bill Curry, Grant Robertson and Tara Perkins report today, Finance Minister Jim Flaherty is acting for the fourth time, reducing the maximum amortization for a government-insured mortgage to 25 years from 30 years. He's also reducing the amount of equity homeowners can take out of their homes in a refinancing to 80 per cent from 85 per cent. The changes take effect July 9.

 

Canada's bank regulator, the Office of the Superintendent of Financial Institutions, has also acted already, and unveiled the final guidelines today.

 

This comes amid concerns that the market is overheated, notably in major cities like Vancouver and Toronto, and as Canadian consumers carry ever higher debt burdens, even though loan growth is slowing.

 

Mr. Flaherty is "prudently taking out some insurance" with today's move, said chief economist Craig Alexander of Toronto-Dominion Bank, by gently tapping the brakes.

 

Debt growth in Canada has slowed, but is still eclipsing income growth, a threat to the economy should it continue. The ratio of debt to personal disposable income among Canadian households has climbed to a startling 152 per cent. Had steps not already been taken, TD believes, that would have climbed already to 160 per cent, the level that sparked troubles in the United States and Britain.

 

Mr. Alexander says the cumulative impact of both  of today's moves by Mr. Flaherty and OSFI should be to reduce house prices by five percentage points from where they otherwise would have been, and sales by 10 percentage points. That takes more than a year to filter through, Mr. Alexander said, and is based on all else being equal. What he means is that the move could, for example, lead to lower sale listings, in turn tempering a price decline.

Bank of Canada Governor Mark Carney has warned repeatedly of the threat to consumers should there be another financial shock and rising unemployment. Some observers had believed that the run-up in debt could force him to hike rates, but, with Mr. Flaherty's action today, the central bank chief now has more wiggle room to hold rates as he sees fit amid the mounting global uncertainty.

 

"These latest steps to tighten mortgage rules are part of efforts to avoid one of the negative side effects of having very low interest rates for a long time," said chief economist Avery Shenfeld of CIBC World Markets, which believes Mr. Carney won't hike his benchmark lending rate until 2014.

 

"With the economy not strong enough overall to deal with a significant ramp-up in rates, it make sense to use alternative targetted measures to address one of those issues, the risks of a bubble in home prices and associated mortgage debt," Mr. Shenfeld said. "These latest moves are just some further fine tuning, but we are already seeing a cooling in house price inflation, and a slower pace to consumer debt. If these measures add to the cooling in housing, it will take the pressure off Carney to use the blunter instrument of interest rate hikes to meet that objective, leaving other parts of the economy, including business capital spending, still getting a much needed boost."

 

In Halifax, Mr. Carney said the move will support the "long-term stability" of real estate and help guard against the risks associated with swollen debt levels.

 

Robert Kavcic of BMO Nesbitt Burns says the reduction in the maximum amortization period is equivalent to an increase in mortgage rates of about 0.9 of a percentage point. (That assumes a five-year fixed mortgage rate of 3.3 per cent on a $290,000 mortgage, after a 20-per-cent down payment on an average home.)

 

"Notably, the impact is bigger than the switch from 35- to 30-year mortgages, which at current mortgage rates, would be equivalent to about 0.6 percentage points of tightening," Mr. Kavcic said.

 

"It’s also important to keep in mind that the amortization change won’t impact affordability across the entire market, but rather those that would be taking a 30-year amortization," he added.

 

"As we’ve observed around prior mortgage rule changes, some housing market activity will likely be pulled forward ahead of the implementation date ... with a subsequent payback thereafter. After the 35-year amortization was eliminated last March, for example, existing home sales fell by more than 3 per cent over the subsequent two months."

 

Mr. Alexander described Mr. Flaherty's action as a "very constructive step." It shows, he added, that the Canadian government agrees with the Bank of Canada that real estate valuations and debt loads are out of hand.

 

The combined moves, equivalent to hiking mortgage rates by between 1.5 and 2 percentage points, should cut between one-third and one-half of the overvaluation in the Canadian real estate market, Mr. Alexander said.

"With respect to recent indicators and the need for such measures, resale house sales activity through the first five months of the year is 7.5 per cent higher than over the same period last year," said Mark Chandler, chief of fixed income and currency research at RBC Dominion Securities.

 

"However, price pressures have abated considerably, with weighted residential prices up just 1.1 per cent on a year-ago basis ... Mortgage credit growth has slowed somewhat as well, though still remains above the pace of personal disposable income (BoC estimates growth at 6.9 per cent on a year-ago basis as of April, the annualized three-month trend is at 6.3 per cent)."

 

Today's move, said Adrienne Warren of Bank of Nova Scotia, could spark an initial burst of activity.

 

"I see it as another move by Ottawa to reinforce cautious lending practices in response to high household debt levels and high home valuations," she said. "The change is significant enough to dampen housing demand and credit growth, though we could see a rush to lock in a 30-year amortization while they are still available."

Read full post
Categories:   2013 real estate | alberta | alberta e | alberta economy | alberta economy, edmonton alberta, university of alberta, | auburn bay | barry klatt | best my nest | best time to sell or buy house | black friday in Canada | buying houses | ca | calg | calgary | calgary buy sell | calgary census | calgary condo for sale | calgary flood | calgary flooding | calgary luxury home market | calgary luxury real estate | calgary m | calgary mls | calgary mls listings | calgary real estate | calgary real estate market | calgary real estate s | calgary real estate statistics | calgary real estate, commercial real estate alberta, alberta real estate market | calgary rental market | calgary resale market | calgary sales expectations | calgary schools | calgary stampede | calgary statistics | calgary top realtor | calgary vacancy | calgary walkability | calgary youtube video | canada economy | canadian spending | celebrations around the world | christmas spending | cir | cir calgary | cir rea | cir real estate | CIR Realty | cleaning tips | costa rica real estate | cranston | creb | diy home | diy projects | driveway repair | earth | economic forecast | edmonton economy | Facebook | finance | financial times | first time | first time home buyer | first time home buyers | fix up home to sell | for rent calgary | foreclosures | halloween | heritage homes | high river flood | holiday | home buyers | home buying | home buying mistakes | home buying tips, home reno, furnace buying, real estate investment | home design | home improvement | home prices | home ren | home renovations | home repair | home sellers | Home tips | Home tips and advice | homes for sale | hoome renovation | house safety | housing market | how realtors help | how to save | investmen | investment real estate | jeff kahane law | legal advice | legal contracts | live in alberta | lowe's | mahogany | mark zuckerberg | market trends | memorial drive | mexico real estate | mls | mls listings | mls listings canada | mls sales | mold in the home | money talks | monthly newsletter | mortgage rates | mortgage tips | new developments | news | october 31 | phone app key | pothole | properties | rbc mortgages | real estate | real estate 2013 | real estate after flood | real estate canada, mls listings, residential real estate, alberta real estate, cir realty | real estate deals | real estate developers | real estate invest | real estate listings | real estate market | real estate market canada | real estate new year | realtor | renovation insurance | revenue property | saskatchewan economy | selling houses | single family house prices | smart investment | Social media facebook | south hospital | southeast calgary | southeast ring road | spring clean | storage ideas | tax refund | technology | top producer | toronto real estate | united states real estate | united states real estate foreclosure | vacation home | vacation rental | vancouver real estate | world | world economy | ymca strong kids | your finance
Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.