Halifax (HRM) Residential Market Statistic Update For Week of June 14th to June 21st 2012
New Listings: 511 (507, 544, 513, 520)
Sold: 206 (195, 183, 194, 193)
Sale to List Ratio: 40% (39%, 34%, 38%, 37%)
Expired/Cancelled/Withdrawn: 114 (87, 162, 130, 104)
Active Single Family Home: 2968 (2982, 2962, 2924, 2964)
Average Single Family Home List Price: $290,506 ($291,325, $271,865, $311,580, $291,706)
Average Single Family Home Selling Price: $284,057 ($285,079, $265,392, $303,709, $286,217)
Average Days on Market Single Family Home: 92 (79, 78, 73, 76)
Active Condos: 267 (259, 261, 263, 256)
Average Condo Listing Price: $281,089 ($276,180, $256,640, $246,963, $256,963)
Average Condo Selling Price: $265,200 ($267,952, $226,373, $237,642, $237,642)
Average Days on Market Condos: 101 (37, 80, 57, 123)
*Halifax/Dartmouth Absorption Rate (weeks): 25 (25.5, 25.3, 22, 25.5)
Holy hot start to summer Batman! Another hot topic swirling around today is the changes being made to the Canadian mortgage. People are very hot and cold on this subject and it has caused some heated debates around the water cooler. I for one am of the opinion that if the government has to crack down on the bad debt "crisis" then they should do so on the bad sections of debt! car loans, credit cards, etc. Why crack down on a successful segment of our economy to "slow the boom" as they say, when they should be encouraging it? Sometimes I really scratch my head at the thought process behind these ideas. I have included the article below. Please leave your thoughts and how you think this is going to effect things here in Halifax, first time home buyers or even sellers in the marketplace. I have a feeling that a spike of activity may occur in the wake of this announcement...
Have a question about the Halifax Real Estate market? Thinking this might be the time to purchase or list your property? Contact me to advise you on your best plan of action for your real estate transaction and get the most advanced real estate system working for you. Feel free to leave a public comment or question below. Follow me on Twitter to keep up to the minute with all things Halifax real estate @HalifaxRealEst
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Ottawa tightens mortgage rules to avert household debt crisis
The changes, announced by Finance Minister Jim Flaherty, are the fourth time the government has reduced the maximum amortization period in the last four years.
Harper Government Takes Further Action to Strengthen Canada’s Housing Market
As part of the Government’s continuous efforts to strengthen Canada’s housing finance system, the Honourable Jim Flaherty, Minister of Finance, today announced further adjustments to the rules for government-backed insured mortgages.
“Our Government stands behind the efforts of hard-working Canadian families to save by investing in their homes and their future,” said Minister Flaherty. “The adjustments we are making today will help them realize their goals, build on the previous measures we have introduced to keep the housing market strong, and help to ensure households do not become overextended. As just one example, the reductions to the maximum amortization period since 2008 would save a typical Canadian family with a $350,000 mortgage about $150,000 in borrowing costs over the life of that mortgage.”
The Government is announcing four measures for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent:
* Reduce the maximum amortization period to 25 years from 30 years. This will reduce the total interest payments Canadian families make on their mortgages, helping them build up equity in their homes more quickly and pay off their mortgages sooner. The maximum amortization period was set at 35 years in 2008 and further reduced to 30 years in 2011.
* Lower the maximum amount Canadians can borrow when refinancing to 80 per cent from 85 per cent of the value of their homes. This will promote saving through home ownership and encourage homeowners to prudently manage borrowings against their homes.
* Fix the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent. This will better protect Canadian households that may be vulnerable to economic shocks or an increase in interest rates.
* Limit the availability of government-backed insured mortgages to homes with a purchase price of less than $1 million.
“Investing in a home is a great way to save,” said Minister Flaherty. “That is the dream that mortgage insurance was intended to support. The measures we are taking today maintain that intended purpose.”
Minister Flaherty said the new rules will take effect on July 9, 2012.
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Jeremiah Wallace, CD
Jeremiah has been involved with many aspects of the Real Estate industry for over twelve years. This includes construction, residential renovations, interior design, and investing in various income generating property products..
Photo's by Jeremiah