"U.S. home prices gain for 5th month in June" useful article to Canadian's looking to buy in the States

U.S. home prices gain for 5th month in June

If you are a Canadian homebuyer looking to purchase in the States, make sure to read the article above and leave comments, questions, or any feedback!

Saving Taxes and Buying a Home

The Home Buyers’ Plan

The Canadian government created the Home Buyers Plan to allow citizens to withdraw up to $25,000 tax-free from their RRSP to buy or build a qualifying home, and to repay the money to your RRSP over a period of up to 15 years. It’s a way to save on taxes and achieve home ownership.

Like any program, there are some rules you should know about. The Canada Revenue Agency is very clear on the rules. “Your RRSP contributions must remain in the RRSP for at least 90 days before you can withdraw them under the HBP, or they may not be deductible for any year,” the CRA’s website says.

For example, if you made your RRSP contribution on Sept. 1, you would have to wait until Nov. 29 to withdraw the money, or you would not qualify for an RRSP deduction for the funds. (This is assuming you did not have any other money in the RRSP before you made the $25,000 contribution.)

There may be ways around the problem, however, says Camillo Lento, a chartered accountant and lecturer in accounting at Lakehead University.

For example, you could try to delay your closing date and withdrawal until after the 90-day period has passed. The CRA would then allow you to deduct the $25,000 from your income, potentially creating a tax refund.

You need to be aware of another rule, however. Before applying to withdraw funds under the HBP you must have a written agreement to buy or build a home, with the condition that your final withdrawal under the HBP can be no later than 30 days after the closing date. Any withdrawals after the 30-day period would be included in your income and subject to tax.

Keeping these rules in mind, Mr. Lento suggests another option: You could plan to close your home purchase, say, 62 days after you made the RRSP contribution, using a line of credit to make the down payment. You could then withdraw the $25,000 under the HBP 29 or 30 days later and pay off the line of credit. That way, you would meet both the 90-day and 30-day conditions and qualify for a refund.

“If he hasn’t purchased the house yet, he can probably make it work,” Mr. Lento says.

If you’ve already bought the house and it’s not an option to delay the closing, you can still access the $25,000 for your down payment by bypassing the HBP and just making a regular withdrawal from your RRSP, he says. In that case, you would be subject to withholding tax on the funds, but you would qualify for a deduction and tax refund. Ultimately, it would be a wash, because the $25,000 RRSP contribution and $25,000 withdrawal would cancel each other out.

Before you make a decision, I recommend you consult the CRA or a tax professional.

If you are interested in buying a house within Durham Region and would like to take advantage of this program, contact me at Re/Max Rouge River Realty in Whitby.

Randy Miller

Sales Representative
Re/Max Rouge River Realty Ltd., Brokerage in Whitby
905-668-1800 or 905-427-1400

Steady Housing Market Predicted for Many Years

Two Steady Housing Years Ahead: CMHC

Canada’s housing market has two good years ahead of it yet, Canada Mortgage and Housing Corp. (CMHC) said Monday, with low interest rates and a “moderately” expanding economy keeping price corrections at bay.

The Crown corporation – which insures Canadian mortgages – has had a consistently rosier view of the market than many private sector forecasters.

Canadian banks have recently issued reports probing the consequences of cheap money, and trying to predict whether there is a bubble in prices that will eventually pop and cause prices to crash. They are particularly concerned about Vancouver and Toronto, where some have predicted price corrections of up to 10 per cent because of overbuilding in the condo market.

But CMHC said Monday Canadian markets would “remain steady in 2012 and 2013.

“With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” said Mathieu Laberge, deputy chief economist.

Also in the forecast: “Housing starts will be in the range of 164,000 to 212,700 units in 2012, with a point forecast of 190,000 units. In 2013, housing starts will be in the range of 168,900 to 219,300 units, with a point forecast of 193,800 units.

Existing home sales will be in the range of 406,000 to 504,500 units in 2012, with a point forecast of 457,300 units. In 2013, MLS sales are expected to move up in the range of 417,600 to 517,400 units, with a point forecast of 468,200 units.

Nationwide, the average MLS price is forecast to be between $330,000 and $410,000 in 2012 and between $335,000 and $430,000 in 2013. CMHC’s point forecast for the average national MLS price is $368,900 for 2012 and $379,000 for 2013. The moderate increases in the average MLS price are consistent with the balanced market conditions that occurred in 2011, and that are expected to continue in 2012 and 2013.”

Durham Region real estate remains affordable and attractive.  Record low interest rates and a stable market make home ownership affordable. Whitby real estate is attractive and affordable. There is a balanced selection of condos, townhouses, semi’s and detached homes available. Desirable neighbourhoods like Williamsburg in Whitby, Fallingbrook, Whitby Shores, Somerset Estates and Brooklin, all offer attractive housing choices for families. If you are interested in either buying or selling, contact me at ReMax Rouge River in Whitby. I have 22 years of local experience and always work in the best interests of my clients.

Randy Miller

Sales Representative
Re/Max Rouge River Realty Ltd., Brokerage, Whitby
905-668-1800 or 905-427-1400

Home Prices Rise

Home Prices up in January

Canadian house prices rose in January on a monthly basis for the first time in three months, led by gains in Montreal, Toronto and Vancouver, according to a report from the Canadian Real Estate Association (CREA).

The newly launched MLS Home Price Index, which monitors housing prices in five major urban markets, rose 0.27 percent in January to 149.3 from a month earlier. It was up 5.2 percent from January, 2011. The report did not provide any actual prices.

Last month’s CREA data showed the average December sale price was $358,480.

“While home prices remain up compared to one year ago, price growth from one month to the next has been slowing, causing year-over-year gains to shrink, and prices are generally expected to continue to stabilize this year,” Gary Morse, the industry group’s president, said in a statement.

January price gains were strongest in Montreal, which edged up 0.7 percent compared with a 0.14 percent dip in the Fraser Valley, B.C. market – the biggest decline of any of the five metropolitan centres covered by the index.

Prices in Toronto and Vancouver rose 0.3 percent and 0.06 percent respectively, while Calgary slid 0.12 per cent.

Within the GTA, The Toronto Real Estate Board (TREB) released sales stats for January.

Greater Toronto REALTORS® reported 4,567 sales through the TorontoMLS® system in January 2012. This number was 8.8 percent higher than the 4,199 sales reported in January 2011. Sales growth was strongest for low-rise home types in the regions surrounding the City of Toronto.

“A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership,” said Toronto Real Estate Board President Richard Silver. “The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum,” continued Silver.

The average selling price for January 2012 transactions was $463,534 – up by almost nine percent compared to January 2011.

“Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year. Strong price growth is expected to attract more listings. A better supplied market should result in a slower rate of price growth, especially in the second half of 2012,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

If you are thinking of buying or selling, your timing does not get any better. Interest rates are at historical lows. Five year mortgages are available at 2.99%. Inventory is plentiful, but balanced with demand.

Durham Region provides buyers with superior value, compared to the western and northern parts of the GTA. Sales have been brisk here at ReMax in Whitby.  Many homes for sale in Whitby offer buyers a wide selection and attractive prices. Neighbourhoods like Williamsburg in Whitby offer buyers a great location and family oriented amenities. If you are interested in either buying or selling, contact me today. With 22 years of full-time local experience, I can provide insights and skills that will make the buying and selling process rewarding and worry-free.

Randy Miller
Sales Representative
Re/Max Rouge River Realty Ltd., Brokerage, Whitby
905-427-1400 or 905-668-1800

Will Demographics Impact Housing Trends?

An Older Population is Altering Demand

According to CMHC’s recently released “2011 Canadian Housing Observer”, which examines and characterizes housing trends in the country, the proportion of senior citizens in the total population is expected to grow from 14% currently to a staggering 24% by 2036. This trickles down to a material impact on the market, as CMHC points out: “Demographic pressures account for much of the variation in the rate of housing construction in different parts of Canada. As people age, their needs are likely to change due to disabilities, medical conditions, changes in their household composition, and/or changes in their financial situation. Population aging therefore requires various forms of housing, a range of models of coordinating housing with support services, and community planning that respond to the needs of seniors and enhance their quality of life.”

While many seniors are electing retirement outside of urban centres, many more are electing a return to the urban core, for a number of reasons. “Economies of scale, the existence of a well-developed construction industry, the often relatively low cost of construction compared to rural and remote communities, and the presence of a wide range of community organizations, seniors groups, faith-based groups, and other civil society institutions interested in serving seniors are all factors that support the provision of housing and supports for seniors in urban areas.”

It’s not just the big urban centres that are drawing this demographic; smaller urban centres are holding great appeal, and are becoming increasingly more popular. In fact, data states that the senior proportion of the population in smaller urban centres has climbed to 16%, and is expected to increase over coming years. Whitby for example has six retirement buildings and many are forthcoming to Durham Region.

“The result is a growing availability in urban areas of housing designed specifically for seniors and of services that meet the needs of seniors who are aging in their homes, as well as projects based on innovative partnerships that integrate housing and support services.”

What is emerging as well, is that many of these senior households are, or will be single households, which will impact not only space requirements, but must also incorporate elements like affordability on single income, as well as possibly social or care requirements.

Aging in Place

CMHC’s Housing Outlook report suggests that there are many seniors who are choosing to stay put, and make appropriate renovations to their existing dwellings to meet their changing needs, rather than downsizing, or moving to retirement housing. The data in their report demonstrates “that a large majority of seniors are choosing to age in place; that is, to continue to live in their current home and familiar community for as long as possible even if their health changes. Some seniors choose to downsize and/or to relocate in order to have better access to services or to live closer to family members, and then age in place in their new home.”

There is also growth in technology to facilitate and extend independent living, including the development of tools, like, “smart sensors which remind seniors to turn off appliances, record patterns of use, and alert caregivers when the senior’s use of the appliances indicates a potential problem. Another example is monitors for seniors with serious medical conditions to enable them to continue living at home without sacrificing needed care.”

I know firsthand that the goal for many seniors is to remain in their existing home for as long as possible. Sometimes major renovations are not necessary; small changes to the house can provide peace of mind and may extend the time they can remain in their home and live independently.

In the past few years, governments have tried to ease the pressure on Long Term Care homes and hospital discharge beds by introducing a variety of supports that help seniors remain in their homes longer. These programs have no doubt had some success, but one of the perhaps unanticipated results is that more seniors are holding off on a move to a retirement residence as an option. Instead, they resist moving at all until they require Long Term Care.

The Rise of the High-Rise

There has been a surge both in condominium interest and development, partly to meet the growing need to support a rising immigration populations in major centres, as well as property investor demands, but it is no coincidence that the popularity of the housing type is increasing in sync with Baby Boomers approaching and entering retirement.

This shift towards housing taste and requirement is changing the physical landscape of housing in the country. Not only is land scarce in many major urban centres, so developers are moving outwards rather than sprawling upwards, but many retirees are favouring the simplicity of living associated with condo living, and are doing so in vast numbers. CMHC reports that “over half of all housing starts in Vancouver, 48% in Montréal and 45% in Toronto were intended for condominium tenure.”

Statistics demonstrate that there is definite appeal for a specific part of the demographic; the Boomers are moving the condo market in the big cities more than the smaller centres. Early boomers in a big market like Toronto where houses have become so expensive, find themselves with a small fortune in their home-one that can get them a pretty comfortable condo. In smaller markets we see those with good pensions moving more toward condos as their perpetual income gives them the comfort of being carefree about being able to pay the condo fees and the taxes. These folks also often enjoy a few months away in winter as long as their health holds. Condo living makes it easy to turn the key without worrying about a vulnerable vacant house.

During the past twenty-two years of selling real estate in Whitby, I have helped people of all ages buy and sell real estate. I’ve helped many clients move their parents from Scarborough or elsewhere to live nearby within Durham Region.

I realize that all buyers and sellers have unique needs and I work hard to make the moving process seamless and stress free. Working with seniors in Whitby is a growing trend and I can help clients of every age find the right solution.

For more insight into the local market, condominiums in Durham or downsizing here in Whitby, Brooklin, Ajax or elsewhere in Durham Region, contact me:

Randy Miller

Sales Representative
Re/Max Rouge River Realty Ltd., Brokerage in Whitby
905-668-1800 or 905-427-1400

Search Whitby MLS listings

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If you want a great site to search for houses, townhouses or condos in Whitby and other areas in Durham Region, check out:



www.Your-Home-Search.ca




- Search listings 24/7 on your own 


- Let me send you the best listings


- Receive my Home Buying Guide

High Security Electronic Lock Boxes

High Security Electronic Lock Boxes a Big Success with Williamsburg Whitby Clients!

We have been using our high security lockboxes for 5 month’s with resounding success. Feedback from clients has been fantastic; they can’t speak enough to the peace of mind this premium service gives them.

Re/Max Rouge River Realty Ltd, brokerage is the first broker in the GTA to implement a new generation of high security, controlled access electronic lockboxes.

With all of my listings, homeowners gain security with these electronic lockboxes. They feature:

• Access codes change every 24 hours

• Made with high security heat treated steel alloy

•  The locking shackle is very strong and bolt cutter resistant

•  The Homeowner has Do Not Disturb feature to prevent access

•  The Lockbox is set-up specifically for your home using a smart-chip encrypted card

•  My office knows the exact time of each showing and how long they were in your home

•  My brokerage is the only company in the GTA, providing Seller’s with this technology

• I install these high-security lockboxes on all of my listings!

If you are thinking of selling and would like to take advantage of this security product and my professional services please contact me today.

Randy Miller

Sales Representative

Re/Max Rouge River Realty Ltd., Brokerage, Whitby

905-668-1800 or 905-427-1400

Williamsburg Neighbourhood

The Williamsburg neighbourhood is located in northwest Whitby. The neighbourhood has almost 2400 homes, that consist of freehold townhouses, links, detached and executive homes on large lots. Residents know the neighbourhood is desirable and the houses tend to sell quickly.

The community is served by several schools. Williamsburg in Whitby has three primary schools: Captain Michael VandenBos Public School, Williamsburg Public School, St. Luke The Evangelist Catholic School. There are two secondary schools within the desirable community: Donald A. Wilson Secondary School & All Saints Catholic Secondary School.

There are three nice parks: Baycliffe Park-which has a distinctive spaceship playground, Country Lane Park- which has two baseball diamonds and Medland Park-which has a playground and a soccer field.
 

If you are interested in either buying or selling, contact me at ReMax Rouge River in Whitby. I have 22 years of local experience and always work in the best interests of my clients.

Randy Miller
Sales Representative
ReMax Rouge River Realty Ltd., Brokerage in Whitby
905-668-1800 or 905-427-1400

www.WilliamsburgHouses.ca

Mortgage Rates Drop

Mortgage Rates Fall to a Record Low!

A strong international demand for bonds from Canada's biggest banks is trickling through the system and pushing mortgage rates to record lows at the consumer level.

The Bank of Montreal was the first bank to offer a five-year fixed mortgage rate to 2.99% last Thursday. This is the lowest posted rate from a major bank in Canadian history.

TD followed suit by lowering their four-year fixed rate to 2.99 per cent on Friday afternoon.

BMO's offer, which ends Jan. 25, and it carries many restrictions. For example, lump sum payments are limited to 10 per cent of the principal each year. The mortgage is also based on a 25-year amortization period. TD's offer is open until Feb. 29, 2012. It's also for a four-year term, much less common than the standard five-year.

The lower mortgage rates are the results of a broader trend in which international bond investors are gobbling up Canadian offerings at record levels because they're generally perceived as being safer than bonds from other countries..

Low rates may be around for some time, but it is critically important for homeowners to look beyond the mortgage rate and review the conditions and restrictions of these special products.

Shopping for a mortgage can be confusing, the product features vary significantly. If you wish to re-finance, or you want to move and take advantage of these low rates, contact me.

I can refer you to a mortgage specialist that can explain the products and help you choose the right mortgage product.

Randy Miller

Sales Representative
ReMax Rouge River Realty Ltd., Brokerage in Whitby
905-668-1800 or 905-427-1400

2011 Was a Great Year - Prices and Sales Were Up!

Second-Best Year on Record for Sales

Greater Toronto REALTORS® reported 4,718 transactions through the TorontoMLS® system in December 2011. The December result capped off the second-best year on record under the current Toronto Real Estate Board (TREB) boundaries. Total sales for 2011 amounted to 89,347 – up four per cent when compared to the total for 2010.

The average selling price in December was $451,436 – up four per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average sale price of $431,276 during 2010.



Low borrowing costs helped both first time buyers and move up buyers participate in the marketplace “Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices during periods of the year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer.

Durham Region sales returned solid and stable results. Total sales with Durham Region during 2011 totaled 9,807, up almost six percent from the 9,242 sales recorded during 2010. The average sale price recorded during 2011 was $317,232, up five cent from the average sale price of $299,448 achieved during 2010.



Looking forward, it appears that 2012 should return similar results within Durham Region. The appreciation achieved during 2011 is in line with the results recorded during most years in the past decade. Real estate in Durham is stable and the market continues to grow. Additional infrastructure such as highway 407 is expected to boost demand within the region. Unlike other investments, real estate continues to offer homeowners very solid and stable appreciation.



For more insight into the local real estate market with Durham Region, contact me at:

Randy Miller
Sales Representative
Re/Max Rouge River Realty Ltd., Brokerage, Whitby
905-427-1400 or 905-668-1800