Calgary SFH and Condo Prices are down!

Mar. 15/08 - Calgary Metro SF Listings under $350,000 = 664
  Condos (With fee) of all types - under $300,000 = 1271
Condos (With fee) of all types - under 250,000 = 498

May 1/08 - Calgary Metro SF Listings under $350,000 = 847
  Condos (With fee) of all types - under $300,000 = 1475
Condos (With fee) of all types - under 250,000 = 580

Aug 8 /08 - Calgary Metro SF Listings under $350,000 = 991
Condos (With fee) of all types - under $300,000 = 1461
Condos (With fee) of all types - under 250,000 = 865

The best value today is found in the resale market

The guidelines and comments that follow apply to both the resale housing market and the new home market...

July 31/08...check out variable rate mortgages...as low as 4.25%...

Your finances...

Get your finances in order by consulting with either your banker or a qualified Mortgage Broker. Bear in mind that a broker is independent and will shop your mortgage. Purchasers with good to excellent credit may buy with reduced down payments, or no down payments, and should expect to earn a discount from the banks' posted or advertised mortgage rates.

CMHC, who insures mortgages for lenders, for one, will allow buyers to borrow the down payment from various sources. Ask us or your mortgage broker or banker for the details.

Payment limits will be imposed that are dependent on your debt load and income; more importantly, decide on a payment that you and your family will be comfortable with. Don't be "house poor". Your mortgage broker will remind you that a pre-approved mortgage is one that does not allow for a change in circumstances, between the time you start your home search and your possession date.

Anticipate maintenance expenses....

that are not part of your current monthly outlay if you are renters. Even a new home requires some type of ongoing maintenance or improvement expenditure, such as a deck or landscaping. Some of the funds for this type of expense could come from a tax refund. Of course, prospective condo buyers need not concern themselves about budgeting for maintenance costs (other than interior improvements) as they will be included in the monthly payment.

Decide on a timetable...

taking into consideration your rental lease. With a new home purchase it is reasonable to expect a possession date coinciding with your lease termination, but it may take several months for a builder to complete construction if that is the route you have chosen to follow.

If that is the case - you choose to have a home built rather than buy a spec home completed or nearing completion - the builder will typically provide a minimum of 35 days notice of possession, under the terms of your contract.

Mortgage payments are always 30 days in arrears, thus you will have the usual rent payment that can be redirected to your mortgage payment. Bear in mind too, that your refund of your rental deposit can also be allocated to the moving expense, or closing fees, if they are not included in your purchase price.

"Too many cooks spoil the broth"...

It is helpful to have advice from family and friends, but too much advice can create indecision, and drive your agent crazy. Rely on an experienced real estate Buyer Agent who is familiar with the market you choose - either the new home market or the resale market - and one who is prepared to work with first time buyers. Not all real estate agents are patient enough with first time buyers, nor are they active in the new home market.

Be realistic about expectations. Chances are the "perfect home" is not available (unless you win the lottery).Be prepared to compromise on some aspect of your "wish list criteria". Remember, you can't "move" the house, thus choosing the right location is paramount; however, you may be able to make some changes to the house itself that enhance your comfort level, once moved in.

Costs to complete...

your purchase may include a home inspection, initial home insurance premiums, the actual move itself, and utility deposits. The mortgage application fee will be paid up front normally, and should be less than $200 if your mortgage is CMHC insured or insured by Genworth (private company). It is important that your mortgage proceeds be advanced to the builder on time, otherwise you will incur interest charges to the builder. The lender and the lawyer who represent you handle this process. You may save all or a portion of legal fees, normally included in the price, if you choose the builder's preferred lender, and if you agree to have the builder's lawyer handle the closing. Be aware that if a problem arises that creates a conflict, the lawyer will withdraw his services to you. You may consider the advancement of mortgage funds, for that matter, a conflict, as the lawyer is representing the seller, the buyer, and the lender.

In Alberta, there can be a gap of several days between when a transfer of land and mortgage are submitted to the Land Titles Office and when they are registered. The underlying reason is that the Land Titles Office seems to not have adequate staff, and thus may not register titles on time; furthermore, your lender may not advance funds on time. A delay in registration means added costs of interest you must pay to the builder. The bottom line - communicate with the lawyer, especially before the closing (7-10 days) and consider having some mechanism included in the contract to protect yourself in anticipation of a late closing. Title insurance can solve this problem because it takes effect the day it is issued (especially useful in the case of buying a spec home already completed).