Tag Archives: market stats

The CAAMP Spring 2012 Mortgage Report

June 4, 2012

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If you love stats, you’ll love CAAMP’s (Canadian Associates of Accredited Mortgage Professionals) semi-annual report on the Canadian mortgage market.  You can read the full report here (be warned, it’s 40 or so pages long), but here are some interesting stats that I’ve pulled from it.

  • CAAMP Spring 2012 Mortgage ReportThere is currently $994 billion in mortgages on primary residences and $161 billion in Home Equity Lines of Credit (HELOCs).
  • The total value of owner-occupied housing in Canada is $3.48 trillion. There are approximately 13.7+ million households in Canada – 9.85 million are homeowner households, while 4.1 million are renter households.
  • 83% of Canadians have at least 25% equity in their home. The average amount of equity is estimated at $214,000. The average mortgage principal outstanding is around $170,000.
  • Individuals with HELOCs have an average of 82% equity in their homes. Those with mortgages and HELOCs have an average of 41% equity in their homes. For those with just mortgages, equity is 49%.
  • The total amount of equity take out during the past year is $46 billion, with most funds used for renovations ($17.25 billion), followed by investments ($10 billion) and debt consolidation ($9.25 billion).
  • Among all mortgage holders, 65% have fixed rate mortgages, 29% have variable rate mortgages and 7% have a combination of both.
  • 75% of outstanding mortgages have amortization periods of 25 years or less.
  • 19% of mortgage holders have made at least one lump sum contribution to their mortgage in the past year.
  • For mortgages that have been repaid during the past two decades, actual repayment periods have generally been only two-thirds of the contracted periods.
  • 23% of mortgage holders have increased their monthly payments in the last year. 19% have made a lump sum contribution to their mortgage.
  • Among borrowers who took out a new mortgage during 2011, 31% obtained the mortgage from a mortgage broker (up 4% from last year – people are starting to figure it out – we can save you $$$)!  For current mortgages, regardless of when they were obtained, 26% were obtained from a mortgage broker.
  • Among mortgage holders who purchased their homes in the past 5 years, if it had been mandatory to put down 10% to secure a mortgage, 45% said they would have been unable to make the purchase.
  • The average 5-year fixed rate discount was 1.77% lower than posted rates (2011 to present).
  • The average mortgage rate in 2011 is 3.64%, down from 4.04% a year earlier. For mortgages on homes purchased recently, the average rate is 3.48%.
  • Of those who renewed their mortgages in the last twelve months, 74% are paying lower rates than previously.
  • Accumulating down payment remains a considerable challenge to potential home buyers in Canada. 52% of tenants point to lack of a down payment as a reason they rent rather than own.
  • If the minimum down payment in Canada was 10% instead of the current 5%, there would have been 100,000 fewer home purchases annually from 2007 to present day.
  • There has been a considerable amount of “locking in” (converting from variable rate to fixed rate mortgages). 14% of fixed rate mortgage holders (slightly over 500,000) have locked in during the past 12 months.
  • 2012 mortgage credit growth of 8.5% will be below the 10 year average of 9.1%.

So there you have it – more stats than you’d ever want to know about the Canadian mortgage industry.  Again, you can read the full report here.  Anything specific catch your eye?  Any stats surprise you?

Tim

Tim is a mortgage agent in Barrie who specializes in helping first-time home buyers. He works with a variety of lenders and can help customize a mortgage with the best rates & options that fit the needs of each customer.

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April Showers Love on Barrie’s Real Estate Market

May 11, 2012

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April in Barrie and the area has been another blockbuster month for the real estate market. We’ve broken the record in Barrie for 2012 with a stellar 271 sold residential properties. The average selling price is up once again at $301,390 which is a 6.25% increase from this time last year. The average days on the market are at 32 with a list-to-sale price ratio of 97.9% (which means sellers are getting almost 98% of asking price) indicating that the sellers market continues.

This doesn’t mean that buyers shouldn’t be out looking! In Barrie alone, 421 new homes came on the market (802 new listings on the entire Barrie board). There is definitely something out there for everyone. The bonus being a buyer right now is that the mortgage rates have remained stable…for the time being. You probably read Tim’s “Mortgage Monday Rate Update” this week that talks about great 5-year, and even 10-year rates!

Another aspect to keep in mind is that every neighbourhood has its own market conditions. If you have a question about a specific neighbourhood, or how your own house might fare on the market, talk to your favourite REALTOR to get the best advice.

Stay tuned for more real estate statistics every month!

Laura

Laura Keller of Century 21 B.J. Roth Realty is a real estate agent with a business philosophy of nurturing relationships with her clients. She will walk you through the process of buying, selling, or investing step-by-step so there are no surprises at the end of your transaction.

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Still a Seller’s Market in Barrie

April 13, 2012

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Not much has changed in a month! March residential sales are still up like they were in February, but there’s still a lack of inventory in our fair city. There is a lack of new listings on the market (361 this year compared to 381 in 2011), and demand remains high. Luckily for sellers, this means you get the most money for your home; the average selling price in Barrie is $293,050 going for 98% of asking price on average, up over $15,000 from this time last year.

As you may recall from a previous posting (“Barrie sales HOT in February“), the market will eventually balance out. If you’re considering selling this year, maybe moving during the summer so the kids can get readjusted, NOW is the time. The average days on the market are around 40, and closing is often scheduled for at least a month after the deal is done. If you think about the timing, you’ll be moving at the end of June if you put your house on the market today!

These local statistics paired with a recent RBC study indicating that “majority of Canadians believe that now is the time to get into the housing market (59 per cent, up four percentage points from last year), instead of waiting until next year (41 per cent)” are important things to keep in mind when thinking about selling. The same RBC study says that a “majority of Canadians believe housing is a good investment (88 per cent, up two percentage points from last year) and more than two-thirds (68 per cent) believe the value of their home has increased in the past two years”.

As always, ask the experts when making a big decision like moving. Make sure that it makes financial sense to you and your family. Good luck!

Laura

Laura Keller of Century 21 B.J. Roth Realty is a real estate agent with a business philosophy of nurturing relationships with her clients. She will walk you through the process of buying, selling, or investing step-by-step so there are no surprises at the end of your transaction.

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Residential Rentals Scarce in Barrie

April 7, 2012

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Before most of us become homeowners, we rent apartments or sometimes houses. More often than not, however, many people are renting someone’s basement. As most people in Barrie know, the vast majority of basement (or “second suite”) units are technically not legal. In fact, there are only 676 registered second suites in the city. We all know the actual numbers are way higher.

Right now, CMHC is predicting an even lower than originally expected vacancy rate  at 1.5%, and it continues to drop as the number of bedrooms increases, like a 0% vacancy rate for 3 bedroom units. In comparison to other Ontario cities, Barrie has the lowest vacancy rate for 2- and 3- or more bedrooms.

Over the past several years, it is clear that there is a lot of construction happening in Barrie, but it’s mostly homes and condos. In fact, only 2 apartment buildings were constructed in 2011 (from CMHC report). Many residents seem to be against building rentals for some reason, but that only means people have to rely on those unregistered suites.

The unfortunate reality is that Barrie’s vacancy rate has been well below Ontario’s average for 20 years with the exception of 2008-2010. The good news is that our rental rates have remained within a few dollars of the Ontario average, but are generally $100-$150 above the national average. In 2011, the average cost for a rental in Barrie (registered, mind you!) was $1000.

We need to start attracting builders in Barrie to construct apartment buildings for rent. Especially considering our student population (recall my article on Student Housing in Barrie) is already having difficulty finding appropriate accommodation. And if/when the university is built in Barrie, think about all those students, professors and staff who will need a place to live. We also need to encourage the city to increase registered second suites. It will increase the tax revenue, and make those units a safer place to live for those tenants.

Laura

Laura Keller of Century 21 B.J. Roth Realty is a real estate agent with a business philosophy of nurturing relationships with her clients. She will walk you through the process of buying, selling, or investing step-by-step so there are no surprises at the end of your transaction.

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Barrie sales HOT in February

March 16, 2012

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If you are thinking about selling your home in Barrie or the surrounding area later this Spring or in the Summer, don’t wait! Now is the time to sell. Buyers are seriously looking, and inventory is very low. As we get into May and June, inventory will be up again and it will turn into a buyers’ – or at least a more balanced – market. Take advantage of your sellers’ market in March and probably April.

We saw 223 home sales in February compared to only 179 at that time last year. Buyers are eager!

You’re also getting the most money right now for your homes. In February, the average sales prices for a home in Barrie was $290,231 getting 97.9% of their asking prices, whereas in February 2011 it was only $264,553.

For example, I put a house on the market a couple of weeks ago and it sold the day after the sign went up…and the sellers got exactly what they wanted.

I know statistics can be boring. Hopefully I’m getting my point across here! Numbers talk! You may think “I’m not ready yet, I still need a month to unclutter” or “I wanted to paint the kitchen” or “there’s just so much work to do before I can put my house on the market!”. Your Realtor can help you make some decisions. We have the expertise to give you proper advice; you may be surprised at how little you actually have to do in your home. Often just a good deep clean will make all the difference.

Either way, if you’re thinking about selling this year, call your favourite Realtor to ask their opinion. As I said, the numbers don’t lie. Make the smart decision, and act now!

Good luck!

Laura

Laura Keller of Century 21 B.J. Roth Realty is a real estate agent with a business philosophy of nurturing relationships with her clients. She will walk you through the process of buying, selling, or investing step-by-step so there are no surprises at the end of your transaction.

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