OTTAWA (Reuters) - New home prices in Canada kept climbing in January, rising 0.4 percent from the previous month as expected, according to Statistics Canada on Thursday.

On a monthly basis, the housing-only component of the new housing price index rose by 0.5 percent and the land-only component edged up 0.1 percent.

New home prices firmed 0.1 percent in January from a year earlier, the first year-over-year rise since December 2008.

Despite nationwide gains, prices have been falling in Western Canada, which saw huge price spikes prior to the recent economic crisis.

“Declines slowed in most of Western Canada’s metropolitan regions as new housing prices returned to the price levels observed prior to the highs registered at the end of 2007 and the beginning of 2008,” Statscan said.

The Canadian housing market slumped during the recession last year but never underwent a U.S.-style collapse. Strong sales and price gains in recent months have led to worries of a made-in-Canada housing bubble and prompted the government to tighten mortgage lending rules in February.

Source: Reporting by Louise Egan; Editing by James Dalgleish - MSN Money

Least expensive unit in the building! Welcome the prestigious architecturally designed luxury highrise - The Illuminada II tower built in 2008.  This one bedroom condo boasts the finer things in life - a modern open layout corner unit with floor to ceiling low-e windows accompanied by custom designer blinds, a private balcony with views of downtown, and a highly secure triple-fob based building with access only to your floor.  9 foot ceilings and rich walnut hardwood flooring grace this home, with high-end finishes, Kohler fixtures, and high-end stainless steel appliances. A gas fireplace adds character and depth to any conversation, while you can also keep cool with the central air conditioning. Enjoy the convenience of in-suite laundry and storage, heated underground parking with storage locker, and being steps away from downtown and the river valley! Your visitors also have secure heated underground parking.  All this PLUS low condo fees. Information and measurements to be verified by purchaser.

678 sq ft                                        Condo

1 Bedroom                              1  Bathroom    

Price: $299,900  

For more pictures click here

Call us at (780) 634-8151

Team Leading Edge…

Leading the way with extraordinary service!

We have received an update from Canada Mortgage and Housing Corporation (CMHC) regarding the upcoming changes that we informed you about in mid-February. To briefly recap, fixed rate mortgages with terms of less than 5 years, as well as variable rate mortgages, will be reviewed for approval (qualified) based on 5 year rates, beginning April 19, 2010. It was not clear at the time of the announcement if the 5 year rates used for qualification would be discounted rates (currently 3.89%) or posted rates (currently 5.39%).

CMHC has now clarified that the qualifying rate for the affected terms will be the greater of the “benchmark rate” and the contract interest rate. CMHC defines the benchmark rate as the Conventional Mortgage - 5 Year rate published by the Bank of Canada (series 121764), which is currently 5.39%. The following are updated examples that illustrate the upcoming changes:

 Fixed rate mortgages with terms of less than 5 years will be qualified based on the greater of the benchmark rate and the contract interest rate, rather than the current method of qualifying clients based on their contracted interest rate. For example, a client selecting a 3 year fixed term today would qualify based on 3.40% (some lenders offer lower “sale” rates), the new criteria will instead require the client to qualify based on the 5 year benchmark rate (currently 5.39%). If however the client selected a 5 year fixed term (or longer), the client would qualify at the contract rate (currently 3.89% for a 5 year term).

Variable rate mortgages will also be qualified based on the greater of the benchmark rate and the contract interest rate. By comparison, variable rate mortgages are currently reviewed based on 3 year rates. Assuming that posted rates are used in both cases, a client will need to qualify based on the 5 year posted rate (currently 5.39%), rather than the 3 year posted rate (currently 4.30%), which reduces the maximum amount that a client can borrow.

 
Changes to CMHC policies re: Self-Employed borrowers
Effective April 9, 2010, self-employed borrowers with more than 3 years in the same business will be required to provide third-party validation of income (e.g. financial statements, contracts, T4s, Notice of Assessments, etc.). This means that the above category of self-employed borrowers will need to fully support their personal income with adequate documentation when obtaining a mortgage.

 
Shirley Froese
Mortgage Agent
CENTUM Elite Mortgage Corp.
Ph:   780-940-4813

Weekly rate minder provided by: Souchita Rattanarasy Dominion Lending Centres Optimum 780-932-2225. Explore Mortgage Scenarios with Helpful Calculators on http://www.souchita.com/

Well the market is doing exactly what I was expecting it to do as we get further into this spring market place.  As of today there are 1,829 single family dwellings for sale in Edmonton proper which is up from last week.  As we get closer to the spring months we will see the number of listings for sale increase.

In the last 30 days there were 598 single family dwellings sold in Edmonton proper.  That give us a listing to sale ratio of 3.06:1 which is a slight increase from last week.  That is still lower than our neutral point indicating upward pressure on valuations. 

However it might be starting a new trend where we might see a more neutral market if the number of listings coming on the market continues to increases at a faster rate than the number of sales.

!!Open House!!

Sunday March 7

1pm - 4pm

363 Kline Cres

Beautiful 2 storey home with 4 bedrooms and  2.5 bathrooms. Large kitchen with lots of natural light, and breakfast nook.  Formal dining area looking on to the living room. Basement is 90% finished and has bedroom, full bathroom, and family room.  Through the sliding glass patio doors just off of the breakfast nook, you will find a lovely large 2 tiered deck with built in seating and lattice.  A great playset for your kids with room to play in the yard, as well as a firepit for entertaining.  A hot tub completes the picture. This won’t last! Buyer to verify all measurements.

1402 SqFt                 2 Storey

4 Bedrooms           2.5 Bathrooms

$299,900           MLS: E3213545

To arrange a viewing of this property please call Team Leading Edge at (780) 634-8151

To view more pictures click here!

See you there!

Welcome home! This beautiful brightly lit 4 level split has been nicely upgraded and is perfect for your family’s next home.  This home features a NEW kitchen including new dishwasher, cabinets, countertops, fixtures, flooring, and breakfast nook.  Lots of natural light from the large windows in the living room.  The formal dining area is great for entertaining and has track lighting.  Renovated upstairs bathroom.  Fully finished basement with large family room and woodburning fireplace, full bathroom, and bedroom.  Large landscaped fenced pie lot with deck.  Located on a quiet cul-de-sac with other families.  New shingles and hot water tank.  Close to both public and Catholic schools, many parks, shopping, and more.  What else can you ask for? Pack your bags and welcome home!

1047 SqFt                 4 Level Split

4 Bedrooms           2 Bathrooms

$319,900           MLS: E3213579

To arrange a viewing of this property please call Team Leading Edge at (780) 634-8151

To view more pictures click here

Weekly rate minder provided by: Souchita Rattanarasy Dominion Lending Centres Optimum 780-932-2225. Explore Mortgage Scenarios with Helpful Calculators on http://www.souchita.com/

Edmonton, March 2, 2010: Prices for residential property sold through the Edmonton Multiple Listing Service® changed marginally through February. Sales activity, however, was up dramatically when compared to last month or the same month last year.  

The average* single family dwelling price was $369,573 for February up just 1.4% from January; 5.6% from a year ago. Condominium prices dipped 3.8% in the month from $240,686 to $231,530. Duplex and rowhouse prices were up 3.3% to $315,390.

“While prices remained stable through February the increase in sales activity indicates that there is a demand for housing in the Edmonton area,” said Larry Westergard, president of the REALTORS® Association of Edmonton. “Listings also increased in February leading to a bigger month end inventory of homes and relaxing concerns that inventory may be too low to handle the spring buying season.”

In February, housing sales were up 33.9% compared to January with 1,184 residential sales. Total residential sales were also up 7.6% from last February. There were 2,505 residential listings added during the month resulting in a 47% sales-to-listing ratio and a month-end inventory of 5,449 homes. The average days-on-market was down 10 to just 47 days. Total sales through the Edmonton MLS® System (including residential, commercial and rural properties) in February were valued at $416 million (up 10.5% from last year).

“The upcoming changes to mortgage qualification rules and impending mortgage rate increases may prompt some buyers to enter the market earlier and cause some additional slowdown in the third quarter,” said Westergard. “As usual, REALTORS® will be challenged to be a voice of reason in the real estate transaction and work to meet the needs of their eager clients without putting their financial health at risk.”

A new and improved MLS® System statistics package is available to consumers at ereb.com with year-to-year comparisons and expanded reporting of the condominium market and new sub-market reports. The public will also find median prices in addition to the typical average price statistics.

Highlights of MLS® activity

¹. Residential includes SFD, condos and duplex/row houses.
². Single Family Dwelling
³. The middle figure in a list of all sales prices

* Average prices indicate market trends only. They do not reflect actual prices, which may vary.

Source: REALTORS® Association of Edmonton