Beltline Feature
Cycle City A three-part series exploring biking in and around Calgary A6
A9 – A11 FREE may 22 to may 28 2015 issue 05-19 editorial 403-781-1324 advertising 403-263-4940 crebnow@creb.ca
real estate news from industry experts
keeping it
interesting Interest rates, economic uncertainty impacting Calgary market
Cody Stuart
managing editor
F
or Calgarians Matt and Vanessa Haug, the stars aligned when they decided to purchase a new home in southeast Calgary. The couple cited low interest rates and competitive house prices behind their decision to act now rather than wait – a sentiment slowly emerging since energy-sector uncertainty took hold in Calgary’s housing market late last year. “We got 2.69 [per cent] on a five-year fixed rate. It definitely impacted our decision,” said Matt, who also cited house prices behind their decision to buy and noted the lower rate did not impact how much they ultimately spent on their new home. “It is definitely nice to have a lower rate because it lowers our monthly payment … it is definitely nice to know that we will have a low rate for five years.” Following a period that saw the Bank of Canada’s overnight rate unchanged at one per cent for more than two years, the rate dropped to just .75 per cent in January. The move, which came as a surprise to many at the time, has since presented dream scenarios for many homebuyers in Canada, said Mortgage 360’s Nolan Matthias.
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result of the 0.25 per cent drop. CREB® president Corinne Lyall said resiliently low interest rates are giving homebuyers or those looking to refinance plenty to be happy about. “The real opportunity in terms of interest rates is for qualified buyers who are already out there looking to make a purchase,” she said. “These buyers not only have more choices in the marketplace, but they also have increased affordability with the low mortgage rates available right now.” Even with the favourable rates, some buyers in Calgary have been reluctant to make a move. According to CREB®, sales activity in April totaled 1,957 units, 22 per cent below last year’s levels and nearly 15 per cent below April’s long term averages.
…the concern regarding the impact a slower energy sector will have on the residential housing market has outweighed the impact of a falling interest rate.” ann-marie lurie creb® chief economist
“The Bank of Canada made this perfect storm even sweeter in January by lowering rates, which have now trickled down to the consumer in both fixed and variable terms,” he said. “With the average five-year fixed rate at all-time lows, Calgary’s homes are becoming even more affordable, which is the most common-sense measure of our real estate market.” The Bank of Canada estimates a household that has renewed a $100,000 mortgage would save around $250 in interest payments this year as a
fire dept. charges illegal suite owners
MLS® TOTAL SALES* APR ‘13 – APR ‘15
1782
1779
1957
2145
2146
2263
2328
2664
2539
2481
1217
APR13 MAY13 JUN13 JUL13 AUG13 SEP13 OCT13 NOV13 DEC13 JAN14 FEB14 MAR14 APR14 MAY14 JUN14 JUL14 AUG14 SEP14 OCT14 NOV14 DEC14 JAN15 FEB15 MAR15 APR15
880
1082
1172
1439
1724
1850
1948
1918
2190
2265
2305
2535
2374
2945
CITY OF CALGARY
rates A3
*All statistics based on monthly data compiled by CREB® via MLS® activity. Includes detached, attached and apartment.
COCHRANE LAKES
INNER CITY TOWNHOME
CAMBRIAN HEIGHTS
Custom Built
Popular Winston Heights
Stunning Renovation
Gorgeous 2,350 sq.ft. Estate home. Stunning mountain view!! $679,900 MLS®C4011270
Immaculate end unit with over 2,000 sq.ft. of executive living space. Minutes to DT. $539,900 MLS®C4010992
Beautifully renovated family home on a quiet street. No stone left unturned! $769,900.
contents news briefs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3 municipal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A3 Council approves carless condo
five things. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A4 Peace Bridge
CREB® STAFF
weekly feed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6
T
event listing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A6
he owners of two illegal secondary suites in Calgary have been charged by the Calgary Fire Department (CFD) under the Safety Codes Act. In two incidents, CFD responded to fires originating in secondary suites. Following investigations, multiple fire code deficiencies were found at both properties.
MUNICIPAL A3
mortgage rates. . . . . . . . . . . . . . . . . . . . . . . . . A8 did you know . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A8 map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B1 open houses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B23 @crebnow
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www . thehomehunters . com sutton group canwest
Call Steve, Grant or Randy if you are considering buying or selling a home, or if you have any questions about the current real estate market!
403-460-2211