Rising housing values and lack of inventory challenge first-time buyers

April 23, 2008 · Filed Under Monthly MLS Stats and St. John's Real Estate · Comment 

While higher housing values and tight inventory levels have hampered home-buying activity so far this year, longer amortization periods and alternative housing types have offset the impact on most major markets across the country, according to a report released today by RE/MAX.

Despite a higher degree of frustration in the marketplace than in previous years, the RE/MAX Affordability Report found that first-time buyers, in particular, remain steadfast in their determination to purchase a home. In fact, entry-level purchasers are adjusting their expectations by sacrificing size, location, and even long-term financial freedom, to overcome challenges such as rising prices and serious supply issues. Innovative financing has become key to homeownership in today’s environment, with longer amortization periods gaining favour in 62 per cent of the major centres surveyed. Low or no down payments were popular with first-time buyers in 38 per cent of markets.

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Arrange your Mortgage - Get Pre Approved

December 28, 2007 · Filed Under First Time Buyers and Mortgages · 2 Comments 

Buying your first home? Second? Looking for an investment property in the St. John’s Real Estate market? The first step in buying real estate is obtaining a pre-approved mortgage.

The St. John’s real estate market is booming! Having your pre-approval in place will certainly work in YOUR favor.

A pre-approved mortgage is a mortgage for a set maximum amount and interest rate that is arranged by a lender (ie bank) prior to the purchaser finding a house.

With a pre-approved mortgage you will:

  • Know how much you can afford and what your payments will be
  • Lock in your interest rate at today’s rate (or lower if rates drop), usually guaranteed for 90 - 120 days
  • Demonstrate that you are a serious buyer, which can help in your negotiations with sellers and their agents

The key to choosing a mortgage is to know your options. The more you know, the more likely you’ll save money now and in the future. There are numerous types of mortgage options available, fixed rate, open rate, variable rate - they can even blend 2 different types to sort your needs.Payments can be set up on a monthly, bi-monthly, bi-weekly and even weekly basis. As well, you get to choose the date of the month to make the payment. By changing from monthly to a bi-weekly payments, a typical 25 year mortgage can be reduced to 21 years. Thats a LOT of interest saved.

A great way to save on interest costs and reduce the life of your mortgage is by making annual principal payments. $2000 extra a year on a 25 year mortgage will reduced the amortization period to 15 years.

There are lots of mortgage calculators on the internet. Play around with them. Try different scenarios.

Jeff Burton with RBC is a great resource when it comes to mortgages. Speak with your mortgage specialist today and determine the right options for you.

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Real Estate and Christmas Holidays

December 4, 2007 · Filed Under Market Trends and St. John's Real Estate · Comment 

People who look for a home during the holidays tend to be more serious about buying. The serious buyers have fewer houses to choose from during the holidays which in turn means less competition and more money for you. When the new year rolls around in January, the amount of listings will increase. With more properties on the market there will be less demand for your particular home.

Houses show better when decorated for the holidays! Buyers tend to be more emotional during the holidays, so they are more likely to pay your price if it’s something they really want.

Often, buyers have more time to look for a home during the holidays than during a regular work week, especially during winter vacations!

Traditionally, January is the month for corporate transferees to begin new jobs. Since these transferees can’t wait until spring to buy real estate, your house should be listed now for them to view on MLS.

You can have your house for sale on the real estate market and still have the option to restrict showings during the holidays for your special family occasions!

Best of all, you can sell now and arrange a delayed closing or extended occupancy til after the new year!

Call Fraser and Stephen Winters and we’ll provide you with a Free Home Market Evaluation.

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