Tania King

Butterfield acres is now accepting summer camp registration! Check back on my previos for my comments on the place. I love that place, acutally, my kids love that place. And yes, I have my kids signed up already. If you are looking for someplace fun for your kids to experience this summer, think about register them in their summer camp. Nothing like seeing a city kid on a farm, lol!

They are located just outside Calgary, on the NW side. Check out their website for more info. www.butterfieldacres.com

Thought you may want to read an article just sent out to me, from CREB. What does CREB think about the Calgary housing market?

News Release

For more information contact:
Jason Martin, Communications Manager
(403) 781-1345
Jason.martin@creb.ca

Calgary Housing Market Shows Signs of Balance, not Bubble

An expected rise in interest rates to fuel an active spring market

Calgary, March 1, 2010 - Calgary's housing market continues to build stability and momentum in the second month of the year, according to figures released today by the Calgary Real Estate Board (CREB^®).

The number of single family homes sold in February 2010 in the city of Calgary was up 25 per cent from the same time a year ago, while condominium sales saw an increase of 56 per cent from the same time a year ago.

February 2010 saw 1,035 single family homes sold in the city of Calgary. This is an increase of 36 per cent from 762 sales in January 2010. In February 2009, single family home sales totaled 825. The number of condominium sales for the month of February 2010 was 536. This was an increase of 43 per cent from the 376 condominium transactions recorded in January 2010. In February 2009, condominium sales were 343.

"There is a spring in the step of Calgary homebuyers as we get ready for the spring market," says Diane Scott, president of CREB^®. "Indeed, the Calgary housing market has shifted from fragile to fervent in just over 12 months. We will see strong activity in the spring market as many buyers will view 2010 as the time to take advantage of affordability and to get in before interest rates rise."

"The market is tightening and we are seeing a moderate rise in the number of competing offers on homes," Scott acknowledges. "But Calgary's market remains in a healthy and stable position. There has been much talk of a housing bubble in some markets across Canada but we believe balance, not bubble, is the story of the Calgary housing market for 2010."

The average price of a single family home in the city of Calgary in February 2010 was $458,254, showing an increase of 4 per cent from January 2010, when the average price was $441,217, and showing an increase of 10 per cent from February 2009, when the average price was $415,568. The average price of a condominium in the city of Calgary was $282,880, showing no significant change from January 2010, when the average price was $282,639 and a 5 per cent increase over last year, when the average price was $268,971. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods, or account for price differentials between geographical areas.

The median price of a single family home in the city of Calgary for February 2010 was $411,000, showing a 3 per cent increase from January 2010, when the median price was $398,000, and a 10 per cent increase from February 2009, when the median price was $375,000. The median price of a condominium in February 2010 was $265,900, remaining nearly the same as in January 2010, when the median was $265,000. That's up 6 per cent from February 2009, when the median price was $249,900.

All city of Calgary MLS^® statistics include properties listed and sold only within Calgary's city limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

"Affordability continues to drive the market and many first time home buyers are seeing this as the time to take advantage of record low interest rates," says Scott. "The spring market will continue to see strong demand for affordable single family homes by first time home buyers and young families looking to move up."

"We will see a rise in both our inventory and demand this spring-and we expect both to stay in a healthy balance. Prices will edge up as the year progresses, but the rise in prices will be moderate," adds Scott.

Single family listings in the city of Calgary added for the month of February totaled 2,154, an increase of 18 per cent from January 2010 when 1,822 new listings were added, and showing an increase of 5 per cent from February 2009, when 2,057 new listings came to the market. Condominium new listings in the city of Calgary added for February 2010 were 1,109, up 17 per cent from January 2010, when the MLS^® saw 951 condo listings coming to the market. This is an increase of 24 per cent from February 2009, when new condominium listings added were 892.

"The story of the housing market is all about interest rates at the moment," says Scott. "When the rates will rise is the wild card. Canada's economic recovery showed marked improvement in the final quarter of last year. This will put pressure on the Bank of Canada to begin raising rates sooner than planned to curb inflation."

CREB^® is a professional body of 5,469 licensed brokers and registered associates, representing 251 member offices and is dedicated to enhancing the value, integrity and expertise of its REALTOR^® members. REALTORS^® are committed to a high standard of professional conduct, ongoing education, and a strict Code of Ethics and Standards of Business Practice. Using the services of a professional REALTOR^® can help consumers take full advantage of real estate opportunities while reducing their risks when buying or selling real estate. The board does not generate statistics or analysis of any individual member or company's market share. All MLS^® active listings for Calgary and area may be found on the board's website at www.creb.com.

As we have been hearing, there are changes that are happening.

Here is a short summary of 3 changes, and the links to follow for more information.

1. Qualifying for a Five-Year rate - Some mortgages were being qualified on the lower 3 year rates, now new borrowers need to qualify for the 5 year fixed rate mortgage, when calculating the gross debt and total debt service ratios.

2. Limit the maximum refinancing - Currently borrowers can refinance their mortgages upto 95%, but come April 19, 2010, that amount is being reduced to 90%.

3. Discouraging speculations - Some properties (non-owner occupied - rentals) will now require a 20% down payment instead of the 5%.

Of course there is are exceptions to the rules and they may change a few more times before they are fullly enforceable.

However, I do encourge you to act soon and talk to a mortgage broker if you are considering purchasing real estate in the near future.

If you would like a contact to a mortgage broker, please feel free to contact me, or your realtor.

For more information on the above changes, feel free to check out:

http://www.fin.gc.ca/n10/10-011-eng.asp
http://www.financialpost.com/most-popular/story.html?id=2570533
http://www.nationalpost.com/news/story.html?id=2590149

Hi Everyone!

There are changes coming this year, some have already happened! I want to keep you updated on the changes, and how they may affect you.

This article was sent to me yesterday, from a mortgage broker. Have a read through it and feel free to contact me to discuss how this may affect your real estate goals.

Bank of Canada urged to hike rates after June

Paul Vieira, Financial Post

OTTAWA -- With Bay Street convinced the Bank of Canada will maintain its pledge to wait until July to begin raising interest rates, the debate now turns to how aggressively the central bank should behave thereafter.

In the view of a paper prepared for the C.D. Howe Institute, the central bank should act with zeal. If it wants to get ahead of the inflation curve, the bank should raise its benchmark rate by 50 basis points at every scheduled rate announcement until the middle of next year, the paper said.

Michael Parkin, an economics professor at the University of Western Ontario and member of the think-tank's monetary policy council, said "steep" increases would be required to make up for keeping the benchmark rate so low for so long.

The paper comes a week before the Bank of Canada's next interest-rate statement, scheduled for March 2 and the same day Mark Carney, the bank governor, held an annual meeting with leading private-sector economists in Ottawa.

The bank cut its benchmark rate last year to a record low 0.25%, and made a pledge -- conditional on inflation -- to keep it there until the end of June in an effort to pump up the economy amid the financial crisis. Analysts say the move has worked. Figures on gross domestic product, to be reported next week, should indicate the economy grew roughly 4% in the fourth quarter, above the central bank's own expectations. And inflation is closer to the bank's 2% target earlier than envisaged, although analysts suggest price increases could lose some steam in the weeks ahead.

The main thrust of Mr. Parkin's argument is the central bank needs to raise rates as aggressively in anticipation of the recovery as cut in response to the financial crisis. This would be in line with the Taylor rule, which dictates by how much a central bank should move its benchmark rate in response to inflation.

Based on the central bank's own economic projections, Mr. Parkin calculated the future path of interest rates. "When the [benchmark] rate starts to rise, it must be on a steep upward path," he wrote. Under the Taylor rule the benchmark rate should in fact, be higher than present levels. As a result, a target rate "somewhat higher" than what otherwise would be required might be necessary for the latter half of this year and all of next, he said, "to avoid inflation running above target."

Economists indicate the central bank, if possible, will keep its pledge because reversing course now could damage its credibility.

Other analysts also signalled that they shared some of Mr. Parkin's view.

"In order to move from an exceptionally low to low-rate environment, you need to move fast," said Sébastien Lavoie, economist at Laurentian Bank Securities, which last fall indicated in a report Mr. Carney would need to entertain rate increases of up to a percentage point.

Michael Gregory, senior economist at BMO Capital Markets, said that by mid-2011 the benchmark rate would "have to be in proximity of being neutral."

However, he added the central bank would have to take into account the strength of the loonie in determining the appropriate level of interest rates. The currency is likely to climb as the Bank of Canada moves ahead of the U.S. Federal Reserve, and perhaps more aggressively, Mr. Gregory said. http://www.financialpost.com/news-sectors/economy/story.html?id=2602124

I look forward to hearing from you, to see if we can get you into your new home.

What is that?

I was at a home inspection this morning, on a home that was built in 1975. There were a lot of the usual finds for this age of home: original windows, some aluminum wiring, original furnace, lack of insulation for today's standards, and one bonus item...

If you look at this picture, you can see that in the attic, there was a screen that was broken through.

Now, if you look at the next picture, you'll see a big heap of grass and twigs. Yup, a birds nest! In the attic! I wonder if the sellers heard any birds, or baby birds making any noises?

That's a BIG nest. Have you checked your attic recently?