Laurie Foster

WinnipegREALTORS® Press Release - June Sales in Winnipeg Strong

PRESS RELEASE

  July 8, 2009

For Immediate Release

 

JUNE MLS® SALES SHOW STRONG RESULTS

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June Sales Fall Just Short of 1,500

 

WINNIPEG -  Home buyers responded in a big way to low interest rates and a good selection of affordable homes to make June 2009 the third best June on record for sales and the second highest for dollar volume. It is only eclipsed by the previous two record years where sales in June respectively were higher, but by less than 5 per cent. As for dollar volume, June 2009 is only the third time in WinnipegREALTORS® 106-year history where dollar volume for the month has exceeded $300 million. Only May 2008 and June 2008 are higher. Helping propel dollar volume to over $311 million this June were three million plus home sales.

 

While overall MLS® inventory remains up 22% at the end of June in comparison to the same time last year, conversions of listings to sales are improving as evident from a number of City of Winnipeg MLS® areas. The average days on market for the sale of residential-detached properties has decreased monthly with it only taking 25 days in June. Compare this statistic to over 40 days in January 2009 and not less than 30 days until last month where it was 27 days. It is also worth noting the REALTORS® Association of Edmonton which had its best June residential sales ever this year were pleased to announce their average days on market dropped to 49 days in June from 60 days or more earlier this year. This development in their words was an indication of ‘buyer enthusiasm’ so Winnipeg is doing extremely well at less than four weeks.

 

June MLS® unit sales were down less than 5% (1,490/1,562) while dollar volume decreased less than 2% ($311.2 million/$316.9 million) in comparison to the same month last year. Year-to-date MLS® sales have declined 10% (6,096/6,817) while dollar volume is off  7% ($1.24 billion/$1.34 billion) in comparison to the first half of 2008. The number of MLS® listings entered on the MLS® this year are up less than 2% at over 9,700 listings.

 

For residential-detached sales, the most active price ranges were the $150,000 to $199,999 at 26% and the $200.000 to $249,999 at 21%. If you combined these two price ranges with the next higher one, from $250,000 to $299,999, this represents 61% of all residential-detached sales in June. The average days on market for sales of MLS® residential-detached listings was 25 days, two days quicker than last month and six days off the pace set in June 2008.

 

“June 2009 resulted in one of Winnipeg’s best real estate months ever and that is in part due to consumers regaining their enthusiasm for Winnipeg real estate opportunities,” said Deborah Goodfellow, president of WinnipegREALTORS®. “Our house prices remain affordable especially in a low interest rate environment and with a better supply of listings than the last few years.”  

 

One notable difference when comparing home sales for the fist six months this year to the same period in 2008 is a softer first time home buyer market. This is evident when you look at sales under $200,000 where first time buyers are most active. Sales are down 18 % in comparison to 2008 whereas when you examine sales over $200,000, they are only down 3% over last year.

 

One opportunity WinnipegREALTORS® strongly suggested to the provincial government earlier this year in its 2009 budget preparation was to seriously consider bringing in a first time home buyer exemption on the cash rich land transfer tax that is levied on all property purchases in Manitoba. First time buyers have trouble enough coming up with the necessary closing cost dollars without being encumbered by an unjustified provincial home buyer tax. In markets like Edmonton and Vancouver where they are seeing a resurgence in the first time home buyer market, there is no land transfer tax in Alberta and a complete first time home buyer land transfer tax exemption exists in B.C. for any purchase price up to $425,000. There is no land transfer tax in Saskatchewan.

 

“We will continue to urge the provincial government to modify the land transfer tax as it is a home buyer tax that generates revenue well in excess of anything that can be justified”, said Goodfellow.

 

Finally, it is interesting to observe that the over $500,000 home market is down substantially from last year with sales off nearly 30%. As part of WinnipegREALTORS® proposal to adjust the provincial land transfer tax, it suggested it should be capped at $500,000.

 

Established in 1903, WinnipegREALTORS® is a professional association representing over 1,500 real estate brokers, salespeople, appraisers, and financial members active in the Greater Winnipeg Area real estate market.  Its REALTOR® members adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service® (MLS®) designed exclusively for REALTORS®.   WinnipegREALTORS® serves its members by promoting the benefits of an organized real estate profession. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shaila Wise

WinnipegREALTORS®

Administrative Assistant, Public Affairs

Phone: 204-786-8854  Ext. 219

Fax: 204-784-2343

Website: www.winnipegrealtors.ca

Email: swise@winnipegrealtors.ca

Proud to support the

Canadian Museum for Human Rights

This journey of hope beginswithyou.net

 

WINNIPEGREALTORS.CA MEDIA RELEASE ON LAND TRANSFER TAX

Click the link below to download the media release. 

Download Land Transfer Tax - Media Release

You will need Adobe Acrobat Reader.  If you do not have it, the program is available for free download by click here.

HOME BUYERS TAX CREDIT info from Revenu Canada's Website

1. What is the Home Buyers' Tax Credit (HBTC)?

For 2009 and subsequent years, the budget proposes to introduce a new non-refundable tax credit, based on an amount of $5,000, for certain home buyers that acquire a qualifying home after January 27, 2009 (i.e., closing after this date).

2. How is the new HBTC calculated?

The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.

3. Who is eligible for the HBTC?

An individual will qualify for the HBTC if:

• they acquire a qualifying home; and
• neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the year of purchase or any of the four preceding years.

If you are a person with a disability or are buying a house for a related person with a disability, you do not have to be a first time home buyer.  However, the home must be acquired to enable the person with a disability to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.

4. What is a qualifying home?

A qualifying home is a housing unit located in Canada. This includes existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles you to possess and gives you an equity interest in a housing unit located in Canada also qualifies. However, a share that only provides you with a right to tenancy in the housing unit does not qualify.

As well, you or the related person with a disability must intend to occupy the home as a principal place of residence no later than one year after buying it.

5. If I buy a house, can my spouse or common-law partner claim the HBTC?

Either one of you can claim the credit or you can share the credit.  However, the total of both your claims cannot exceed $750.

6. My friend and I intend to purchase a home, and we both meet the conditions for the HBTC. Can we both claim the credit?

Either one of you can claim the credit or you can share the credit.  However, the total of both your claims cannot exceed $750.

7. Do I have to register the acquisition of the home under the applicable land registration system?

Yes.  The individual's interest in the home must be registered in accordance with the applicable land registration system.

8. Who is considered a person with a disability for purposes of the HBTC?

For the purposes of the HBTC, an individual eligible for the Disability Tax Credit (DTC) is one for whom an amount can be claimed under the DTC for the year in which an agreement to acquire the home is entered into, or could be claimed if costs for an attendant care or care in a nursing home were not claimed for the [Medical Expense Tax Credit].

9. How will I claim the HBTC?

Beginning with the 2009 personal income tax return, a new line will be incorporated to allow you to claim the credit.

10. Do I have to submit any supporting documents with my income tax return?

No. However, you must ensure that this information is available, should it be requested by the CRA.

11. Is the HBTC connected to the existing Home Buyer's Plan?

No. Although some of the eligibility conditions for the HBTC and the Home Buyer's Plan are similar, they are not connected. Your eligibility for the HBTC will not change whether or not you also participate in the Home Buyer's Plan.

12. Where can I get more information about the new HBTC?

The CRA encourages taxpayers to check our Web site often - all new forms, policies, and guidelines will be posted here as they become available.

Documents are also available immediately at Department of Finance's Budget 2009 for details.

2009 FEDERAL BUDGET CHANGES OF INTEREST

The Budget proposes:

-  an increase from $20,000. to $25,000 for the amount an eligible candidate can withdraw from their RRSP tax-free to purchase a home on the Home Buyers' Plan (HBP).

-  a new non-refundable tax credit for qualified first-time home buyers in the amount of $5000. multiplied by the lowest personal income tax rate for the year (eg: 15%)

- a temporary Home Renovation Tax Credit (HRTC) allowing a 15% non-refundable income tax credit on eligible home renovation expenditures ofor work performed or goods acquired.

BANKING ON LOWER RATES

Click the link below to read an article we think is worth the read, entitled:
Banking on Lower Rates.

Winnipeg Free Press

Congratulations to Laurie Foster, AMP

VERICO One Link Mortgage congratulates Laurie Foster with their Platinum Award for 2008.  This is the highest level of achievement awarded by One Link Mortgage, reflecting Laurie's status as their Winnipeg agent with the highest volume done in 2008.

LAURIE'S THOUGHTS ON TODAY'S MORTGAGE MARKET

I do not want to make light of our current financial markets or deny that there are serious problems around the world, but I do think it is important to look at the mortgage interest rates from a factual position rather than the "sky is falling" perspective that the news media has put forth.

In 2001, most people in the real estate and mortgage worlds enjoyed a successful year and our clients were quite accepting of the interest rates of the day.  There were no cries in the night about doom and gloom and massive financial upheaval.

The five year rate posted at that time was 7.40%.   Today, the posted rate is just 6.85% and I, as a mortgage broker, have access to a 5 year rate at only 4.49%!  The rates of the past would have a hard time beating the rates of today.

Another complaint often touted is that it is harder to get a mortgage today.  Not true.  Qualified clients will continue to have good mortgage products available to them and people with less than optimum credit may pay a premium in their rate, but we expect to continue to provide them with solid mortgage products as well.

Personally, I think this is not a time of upheaval, but, rather, it is a time of opportunity.  The market in Manitoba is still considered strong and those who are equipped with the right facts, a good attidude, and a strong support network (that's me, by the way!) will ascend the doom and gloomers and have a fantastic 2009!

In particular, the mortgage market in Manitoba is looking fine.  According to CMHC, in order to properly understand the happenings in the Manitoba Mortgage Market, you must take them out of the national context.  Currently, Manitoba's market is very different from many of the markets in other provinces.  Immigration in Manitoba is up, unemployment is low,  the resale market is still above average and moving towards being more balanced, and, best of all, there is more home value than mortgage debt in Manitoba which will give Manitobans a greater buffer in financially difficult times.

All in all 2009 looks to be a year full of hope and opportunity, not doom and gloom.

SUBPRIME CRISES

Here is the link to a very informative artice:

The Subprime Crisis Explained by Dan Richards

WINNIPEG HOUSING MARKET IN GOOD SHAPE FOR 2009

This article is a recent press release posted at:  http://www.winnipegrealtors.ca/Editorials.aspx?id=791

A new report by Royal LePage said Winnipeg’s housing market will buck the national trend and experience a moderate price increase in 2009, with home prices rising an average of four per cent to $204,900. Despite the rise in the average home price, the report said Winnipeg has one of the more affordable housing markets in Canada, which is well below the projected national average of $295,000 for 2009. “I am pleased to say our December results were in line with previous Decembers and give us some optimism going into 2009,” said Darlene Clare, president of WinnipegREALTORS®. “Even though multiple offers have dropped off substantially in the last quarter, there were still 27 per cent of house sales selling for above or at list price.” Canada’s resale real estate market should see only modest price and unit sales corrections take place across the country during 2009, according to the Royal LePage 2009 Market Survey Forecast. National average house prices and the number of homes sold is expected to decline this year. Nationally, average house prices are forecast to dip by three per cent from last year to $295,000, while transactions are projected to fall to 416,000 unit sales in 2009, a 3.5 per cent decline.  In spite of this cooling trend, price and activity gains are anticipated in some provinces. The report said emotional reaction to recent economic and political instability did much to dampen consumer confidence during the latter part of 2008, causing a marked slowdown in house sales activity. However, as a more rational understanding of the issues gains ground, together with a wide range of announced corrective measures, consumer confidence is anticipated to recover, prompting real estate activity to pick up once again in the latter half of 2009.  Furthermore, Canada in 2009 enjoys a stronger economic foundation than most countries and that should temper the housing market correction. The combination of low inflation, reasonable employment levels and improving housing affordability, driven in part by low mortgage rates, are anticipated to stimulate demand in the coming months. “While Canada's housing market is anticipated to continue to move through a period of adjustment over the next six months, we should expect modestly lower home prices, not a U.S.-style collapse, which was brought on by a structural failure of the entire American credit system,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services.  “Most consumers are not aware that nationally, Canadian housing market activity peaked in 2007 and has been adjusting lower since. We are well into this inevitable cyclical correction. “While a grey cloud hangs over some markets, the sky is not falling. In recent years, Canada has been a difficult place in which to be a purchaser of real estate, particularly for first-time buyers. When real estate markets correct, inventory levels rise, providing buyers with choice instead of frustrating bidding wars.  “In 2009, appropriately-priced homes will still sell for fair value,” Soper added. The housing market is expected to perform quite differently from region to region across the country. In many mid-sized cities where home prices remain below the national average, such as Regina and Winnipeg, prices are expected to increase moderately through 2009, as homeownership remains particularly affordable.  According to the report, Canadians have been confused and justifiably skeptical of the efforts of the worlds’ central banks and governments to combat the global economic crisis. There is broad belief, however, that Canada’s financial house is in better shape than many peer countries, particularly the U.S.  While the federal and most provincial governments have been slow to implement economic stimulus packages, they enjoy broad public support in principle. Together with the actions taken by the Bank of Canada, the positive impact on consumer confidence stemming from infrastructure spending announcements and other stimulus programs is expected to be significant. “We believe that the Canadian economy will struggle early in 2009,” said Soper, “but that conditions will progress continually throughout the year. Improving credit markets, the stimulative impact from a weaker Canadian dollar, together with the implementation of large fiscal stimulus initiatives, set the stage for a return to growth in the second half of 2009.”

BUY AMERICAN, I AM BY WARREN BUFFETT

The article listed below is well worth the read.  It appeared in the New York Times, Late Fall, 2008.

Buy American. I Am.
By WARREN E. BUFFETT
New York Times

2008 HOUSING MARKET HIGHLIGHTS

The following article is posted at: http://www.winnipegrealtors.ca/Editorials.aspx?id=793

The start of the New Year shows MLS® listing inventory is improving. Overall, residential-detached
listings have nearly doubled over 2008. For listings over $210,000, there are  2 1/2 times as many — 599 compared to 235 in 2008. This is not surprising as there was a softening in some of the higher-priced sales activity in the final quarter of 2008. If you compare November with a busier month such as June, there is a noticable difference in the percentages of homes selling in the higher price ranges. In June last year, one in every second home sold for above $200,000 whereas in November this price range represented only 37 per cent of total sales. 

Conversely, sales under $100,000 represented 15 per cent of total residential-detached sales in November, while the yearly average was only 11 per cent and during some months sales in this price range fell under 10 per cent. This price category began to shrink as the year went on, but it rebounded in the fourth quarter due to less activity in the upper end of the market.

There was also a flight to affordability in the condo market as seen by a higher percentage of sales in 2008 in the $120,000 to $149,999 price range in comparison to 2007. Nearly one out of three condo listings sold in this price range whereas only one in four sold in 2007. The trend is likely to continue as baby boomers downsize from larger homes and seek affordable condo units. 

As well, first-time buyers are expected to seek out more affordable condominium units than more expensive single-family homes in certain areas of the city. 

The most active residential-detached price range in 2008 was from $160,000 to $199,999, representing 21 per cent of total sales. Sales over $300,000, which accounted for 14 per cent of total sales, was next in activity.  

The latter price range was one of the highlights of the booming spring market of 2008 when multiple offers were plentiful. Despite the total number of annual MLS® sales in 2008 falling three per cent from the record-setting sales of 2007 — the first time in WinnipegREALTORS®' 104-year history MLS® sales went over 13,000 — the number of residential-detached sales over $300,000 in 2008 were up 44 per cent over 2007, including nine million-dollar-plus sales — a record number for one year. 

The move to a higher percentage of sales in the upper-price ranges in 2008 was clearly a contributing factor in the annual average residential-detached price rising 13  per cent in comparison to 2007 — the average went up from $182,459 to $206,213. Last year marked the sixth year in a row that house prices went up by low double digits in comparison to the year before. The good news is Winnipeg prices have risen in a consistent, steady fashion without any serious erosion in affordability. 

With the increase in listings as the year progressed, supply fell more in line with demand and the market became more balanced from what has been clearly a sellers market, which helped bring down the average monthly residential-detached sale price.  The healthy number of above-list-price offers, especially in the first three quarters of the year, also led to the average home price rising by a percentage in the low teens. 

Condominium prices did not rise as significantly and ended up nine per cent higher for the year, which was up from $158,632 in 2007 to $172,649 in 2008. One condo sold for $999,000 in 2008.

Last year was another remarkable year for WinnipegREALTORS®: a $2 billion year with dollar volume increasing nine per cent over the first $2 billion year established in 2007. Sales fell off by three per cent, but were second highest to the record amount set in 2007.

Out of the 12,630 MLS® sales recorded in 2008: 

• Condominiums as a share of the total MLS® market fell back a percentage point from 2007, down 16 per cent in sales.  

• Single attached, duplexes, town houses and vacant land all had more sales in 2008 than in 2007. 

• Residential-detached by far had the lion's share of dollar volume sales — only $46 million shy of reaching the $2 billion mark.

Other 2008 highlights worth noting:

• Average days on market for residential-detached and condominium sales was 25 days. The lowest average days on market for residential-detached MLS® area sales were Windsor Park and St. Norbert at 13 days. For condo sales, it was Fort Richmond at 10 days.

• The overall sale price to list price ratio for residential-detached sales was 103.75  per cent, which meant the average sale in 2008 was 3.75 per cent above list price. The highest MLS® area sale price to list price ratio was Old St. Vital at 109.6 per cent.

• The highest average residential-detached sales price was in the Tuxedo MLS® area with an average of $540,611 based on 65 sales. There was actually a higher residential average sale price at $570,450, but it was only based on four sales in the sparsely populated MLS® area west of Kenaston and south of Wilkes. Headingley South had an average sale price of $515,122 and East St. Paul's was $466,108.

• The lowest average sale price was the central North End MLS® area just north of the CPR tracks at $68,703. The next lowest MLS® areas were downtown Winnipeg at $68,767 and Weston at $94,054. 

• The highest average condominium sales price was in the Island Lakes/Royalwood MLS® area at $316,436 based on 16 sales.

• The most MLS® residential-detached sales recorded in one MLS® areas was the rural area immediately southeast of Winnipeg, including towns such as Niverville, La Broquerie, Grunthal, Kleefeld and Blumenort, where there were 328 sales. Next at 307 was the northernmost part of Winnipeg's North End (north of Mountain).  The busiest condominium MLS® area in 2008 was Osborne Village/Cresecentwood with 189 sales.

GENWORTH VOLUME AWARD, 2008

Congratulations go out to Laurie Foster from Genworth for

being the broker who put through the most deals with Genworth in 2008. 

FALL MAILER TO OUR CLIENTS

In an effort to keep our clients informed and provide some guidance in these economically turbulent times, we sent the following letter out to our client list in the fall of 2008.

Minister Changes Government-Guaranteed Mortgages --- how will this affect you?

To help keep our market strong, the Minister of Finance recently made changes to the program for Government-Guaranteed Mortgages. There has been much buzz about these changes, and I'd like to take a few minutes to update you.

By now, most Canadians have heard that Canadian banks are the best in the world. Canadians have a mortgage system that is quite different from the U.S.A. and much safer for all concerned. In Canada, high-ratio mortgages, those taken out with less than 20% down payment, are insured and guaranteed. The insurance, provided by insurers such as CMHC, Genworth, or AIG protects the lender should the home-owner default on the mortgage. The Government Guarantee further protects the lender should the insurer be unable to pay out claims. This double protection encourages lenders to continue offering mortgages to Canadians on a large scale and it allows the Canadian system to function as smoothly as it does.

In response to the global credit crisis, the Canadian Government recently put in place a plan to buy 75 billion dollars of insured mortgages from banks, credit unions, and other mortgage lenders. They did this in order to improve the cash flow available to Canadian mortgage lenders. This should be viewed as a positive move and much different than the 700 billion dollar bailout package in the U.S.A. In Canada, the Government has purchased mortgages that they had already guaranteed and, as the Government is able to borrow money at a lower rate than that charged on the mortgages; the Government may actually show a profit on the transaction.

After observing the mortgage crisis in the U.S.A., the Canadian Government made changes to prevent the same type of problem from arising here. In the last few years, the Government-Guarantee was allowed on mortgages with 100% financing and 40 year amortizations. As of October 15, 2008, there will be no guarantees on mortgages over 95% of the property value, or those with amortizations longer than 35 years. As such, these products won't be available from lenders.

That said, these changes significantly effect only a small population of homeowners. If you already own a home and were not planning on moving or refinancing in the near future, relax; these changes will not affect your current mortgage. For those who are buying a new home, and do not have the 5% down, do not worry. You will still be able to arrange up to 100% of the purchase price by using a cash-back down payment option that is offered by some lenders. I will be happy to explain how this great option could work for you.

These recent changes will benefit the mortgage market as a whole, and the effect on the individual homeowner will be minimal. Please do not hesitate to contact me. I am always here to answer your questions and provide you with guidance – I am your mortgage man.