Real Estate Qualicum Beach Parksville & Area to Nanoose Bay Newsletter June 2012

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Real Estate in Qualicum Beach Parksville & Area to Nanoose Bay

  • Photograph of Tom Whitfield
  • Parksville Qualicum Beach REALTOR®
  • Published: Jul 7th, 2012 at 12:12 pm

REAL ESTATE NEWSLETTER JUNE 2012
NANOOSE BAY TO QUALICUM BEACH & AREA

July 7, 2012

Greetings,
This could be the best time in a long time to buy.  Interest rates are at all time lows. After a prolonged period of focus on euro zone debt, global confidence in the economy is restored.

In a recent Globe & Mail article (June 9, 2012) describing 10-year investment returns, 12 leading investment portfolio experts predicted an average long term return of only 4%, or 6% before an expected 2% inflation rate. It may be a good time to invest in real estate!

CREA, June 21, 2012
Changes to Mortgage Regulations
The Minister of Finance announced changes to the standards governing government-backed insured mortgages:

  • the maximum amortization period was reduced from 30 years to 25 years;
  • the maximum amount Canadians can withdraw in refinancing their mortgages was lowered to 80 per cent from 85 per cent of the value of their homes;
  • the maximum gross debt service ratio was fixed at 39 per cent and the maximum total debt service ratio at 44 per cent; and
  • the availability of government-backed insured mortgages was limited to homes with a purchase price of less than $1 million.

CREA has continually stressed the need to avoid changing the minimum down payment. Today’s announcement confirms Canadians will continue to be able to purchase a home with five percent down. The changes announced today will come into effect on July 9, 2012.

CREA, June 15, 2012
Wayne Moen, CREA President:  "The expected continuation of low interest rates will keep housing markets stable and homeownership affordable and within reach for many buyers in the months ahead."

Activity receded in about 60 per cent of all local markets in May as compared to April.

"At the same time, national average price is finding support from Calgary, where sales and average selling prices are up from levels in May last year.  Overall, price growth remains modest amid balanced market conditions in much of the rest of Canada."

Bank of Canada Interest Rate Decision - BCREA, June 5, 2012
No surprises from the Bank of Canada's interest rate decision this morning.  The Bank opted to keep its overnight rate at 1 per cent, where it has been for nearly two years.

CREA, May 25, 2012
There are some interesting developments in price trends across housing types.  The one that really stood out in April was accelerating price growth for the townhouse segment right across the board.

The recent acceleration in townhome prices in all markets tracked by the index may indicate the beginning of a shift in demand away from the increasingly expensive single family sector.

One reason for this could be that as an alternative to expensive single family homes, townhouses are viewed more favourably than apartments by families looking for housing in more centrally located areas.

CREA, May 15, 2012

National Statistics
"It bears repeating that the national average price was skewed higher last spring by record level high-end homes sales in Vancouver's priciest neighbourhoods, and that a replay of this phenomenon was not expected this year," said Gregory Klump, CREA's Chief Economist.  "Sales data confirm that high-end activity in Vancouver is well off the peak levels reached at this time last year, which is exerting a gravitational pull on the national average price."  "By contrast, activity in Toronto is stronger this spring than it was last spring.  Higher-priced sales activity there is on the rise and buoying average prices.  As the most active housing market in Canada, Toronto is the biggest factor supporting national average price."

Netting out both Vancouver and Toronto results in a 3.1 per cent increase in average price.  On balance, this points to modest price growth amid balanced market conditions in much of the rest of Canada."

Nationally, the number of months of inventory stood at 5.6 months at the end of April, unchanged from levels reported in March.  The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand.

For those who are thinking about buying a property, do not stay on the sidelines too long - the tide of good buys is here for now but that may change!

Feel free to browse through my website If you don’t see the listing you want, let me know and I will find it for you.  And a hearty THANK YOU to all my past clients.  Remember, I am never too busy for the referral of your friends and family.

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