15 Apr

Mortgage and Real Estate Market Update on the Alberta Area

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Posted by: Gert Martens

Our Grande Prairie mortgage broker team knows how unsettled the housing market has been with the current worldwide pandemic. Many business sectors are being affected and the housing market is one of them. It’s because of this that we can’t predict what the market will do in the next month or so, and we are waiting for March’s figures to see what impact the pandemic has had so far.

Normally, spring is a peak time for the housing market. In February, it looked like several areas of Canada were heading for a hot season, with the sale of homes close to 27% in comparison to this time last year.

 

Current Statistics

So far, for the Alberta/Calgary region, mid-March has seen home sales up at 7.5% from this time last year. The average time that homes have been spending on the market is 53 days, which is down by 17.19% from last year. The average sales price of homes is at $458,908, a drop of 2.13%, and the median price of homes is at $410,000, a drop of 1.86%. Mid-March saw an increase of 5.53% in new listings, which is at 1,83. Active listings are at 6,083, which is down 5.0%.

Areas like Heritage Point have had average sales prices of $1,066,891 with the lowest price being $639,900. In Strathmore, the average sales price is $504,750, with the lowest price coming in at $100,000.

 

Interest Rates

The Bank of Canada has slashed interest rates by half a percentage point to help the economy. This means a lot of people are considering applying for a mortgage now while the rates are down. For those who already have a fixed-rate mortgage, they won’t benefit from this recent drop. However, variable-rate mortgage holders will benefit from the drop. One word of advice, if you are taking out a mortgage now, is to not spend more than you can realistically afford. Things may be a bit cheaper right now, however, there are concerns about a slowdown in the global economy and the potential for lost jobs. It’s best to make certain that all of your income isn’t being put towards housing and lifestyle, and that you have an emergency fund.

 

Where Things are Heading

The issues we are having at this time are that many people are uncertain about their cash flow and jobs, making them think twice about investing in homes. Many sellers are wary about having strangers in their homes for viewings, and a lot of open-houses have been cancelled. In some countries, it has been advised that people refrain from moving home at this time.

Saying that realtors, sellers, and buyers are looking to technology to help with viewing homes. A lot of real estate agencies are starting to offer virtual tours to keep social distancing measures in place.

The actions that have been set out by the Alberta Health Services, Canadian Real Estate Association, and Albert Health are being adhered to in order to keep everyone safe at this time. For example, if an open house must be done, real estate agents are making sure that all visitors wash their hands before entering a home and refrain from touching any surfaces. They are making sure to wipe shared surfaces with disinfecting wipes. Other steps they are taking is to limit attendance for open houses to 1 group at a time, asking sellers to disinfect the home thoroughly after an open house, and are asking anyone who attends an open house to alert them if they start to show symptoms of Covid-19.

Saying that many have chosen to put house hunting and selling on pause for the time as we wait out the pandemic and it’s long term effects. Once the monthly figures have come in for March, we may have a better idea of where things are headed. For now, things haven’t come to a halt in the Alberta and surrounding areas housing market, but some experts are feeling that things will start to slow down as the pandemic reaches it’s peak in possible the next 3 weeks. Until then, realtors will do all they can to keep clients and potential buyers safe.

If you have questions about mortgage rates or want some advice, give our Grande Prairie mortgage broker team a call today!

 

18 Jan

Grande Prairie Mortgage Broker – Market Update

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Posted by: Gert Martens

Even as the market headed closer to winter, the number of homes sold in the Grande Prairie area was still climbing.

The Grande Prairie & Area Association of Realtors reported that home sales had risen a significant 39.2% for the month of October when 2016 and 2017 sales numbers were compared.

October was not the first month in 2017 to see increased sales when compared with months from the previous year. In fact, at the end of October, the year to date total number of home sales had reached 1,942 residential units, rising 27.8% over the same period of 2016.

The great news for buyers is that, while sales continued to soar, the average price of homes that were sold did not. In October 2017, the average sales price of Grande Prairie homes was recorded at $271,119. This price is down 11.6% from the same month in 2016. The year to date (January through October) average sales price was recorded at $294.714. This price is down a smaller 1.2% from the same period in 2016.

In addition to increased sales and lowered average sales prices, there was also a rise in new residential listings. This addition of 396 new residential units to the Grande Prairie market in October, brought the total number of active residential listings up to 1.797.

At the beginning of November, there was still about a 9.9 month’s supply of inventory on the market. This means that it would take 9.9 months from the beginning of November to sell off the entire inventory of residential properties on the market if the rate of home sales remained constant.

With the Grande Prairie market continuing to remain strong as the market headed towards the New Year, and the local area being much more affordable than nearby cities like Alberta, now is a great time to buy!

If you have been considering the purchase of a home in the Grande Prairie area, why wait? Give me a call today to find out more about your financing options and how you can benefit from the strength of the local market!

13 Sep

Mortgage Broker Grande Prairie – August Market Update

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Posted by: Gert Martens

In Grande Prairie and the surrounding area, home sales rose in July 2017 compared to the same month a year before.

While homes sales are still considered to be lower than normal compared to averages over the last 5 years, the number of homes sold in and around Grande Prairie in July 2017 rose an impressive 17.9% over July 2016. This increase brought the number of homes sold up to 191 for the month.

This number is even more impressive when it is compared to Alberta as a whole, where sales rose only 3% for the same period.

Increases in the number of homes sold have led to an increase of 14.6% in dollar volume, raising the total volume to $56.3 million for this past July.

Despite these increases in sales, the average price of Grande Prairie homes has decreased 2.8% on a year over year basis to $294,516 in July of this year. Compared to the average price throughout the province of $396,946, homes in the Grande Prairie area are quite affordably priced.

During the second quarter of this year, home sales were pretty evenly distributed between price ranges, with roughly half of the homes listed below $400,000.

As is typical with increases in sales, new residential listings have also gone up, rising 17.7% from July 2016 to July 2017. There were 626 new listings added to the market in July of this year, bringing the total of active residential listings up to 2,074 at the end of the month.

It would currently take almost 11 months to sell all the inventory at the current rate of sales in the market.

With lower prices and increased inventory, now is the time to get pre-approved and start searching for your perfect home!

If you are interested in purchasing a home in the area and you are ready to get the ball rolling on your mortgage process, give me a call today at (780) 933-0109! I look forward to helping you save on the purchase of your dream home!

 

 

Source: https://www.cmhc-schl.gc.ca/odpub/esub/64147/64147_2017_Q03.pdf?lang=en

Source: http://creastats.crea.ca/gran/