An Amazing Look At the Kootenays

Not-so-often-seen views of the West and East Kootenays including the Selkirks, Purcells, and Rockies. Valhallas, Kokanee Glacier, Jumbo, Flathead, Bugaboos, and the Coal Mines are all locations you will explore on this 6 minute flight over Stunning Landscapes!!

A mostly aerial photo slideshow by Douglas Noblet
Visit www.wildairphoto.com for more photos!

Average Performance for Housing Market in 2012

BCREA 2012 First Quarter Housing Forecast Update 

Vancouver, BC – January 27, 2012. The British Columbia Real Estate Association (BCREA) released its 2012 First Quarter Housing Forecast Update today. 

“Modest economic growth at home and abroad is expected to limit growth in consumer demand both this year and in 2013,” said Cameron Muir, BCREA Chief Economist. 

BC Multiple Listing Service® (MLS®) residential sales are forecast to increase 2.1 per cent from 76,817 units in 2011 to 78,400 units this year, increasing a further 2.7 per cent to 80,500 units in 2013. The 15-year average is 79,000 unit sales. A record 106,310 MLS® residential sales were recorded in 2005.   

"While European sovereign debt concerns and a sluggish US economy will continue to impact consumer confidence, strong demand in the bond market is expected to keep mortgage interest rates at or near record lows for most of 2012,” added Muir. 

Home prices in most BC markets are forecast to experience little change over the next 24 months as the supply of homes for sale more closely matches consumer demand. The average MLS® residential price in the province is forecast to edge down 2.2 per cent to $548,500 this year and remain relatively unchanged in 2013, albeit increasing 0.8 per cent to $553,000.

Copyright BCREA reprinted with permission

Home For Sale - 912 Observatory Street, Nelson, BC

Built in 1919, this heritage home sits on a superb lot in a desirable Uphill neighbourhood that offers views of Kootenay Lake and surrounding mountains..  Currently a comfortable residence but it is ready for some work. There are however plenty of rewards for undertaking this project.  Great views, a good floor plan and a fantastic fenced yard are already there.  Those with a green thumb will love the level yard which features fruit trees, a garden area and great sun exposure. It is also close to schools, parks and all of the City of Nelson's many amenities.  Start the renovation today or enjoy this affordable 3 bedroom heritage home as it is.  If you are ready to uncover this Victorian homes hidden character and complete its restoration then call today to book your showing. 

$275,000

Price Reduction

3 self contained living spaces

Priced reduced to $35,000 below recent appraised value this South Slocan home needs some work but offers the right buyer a great opportunity to turn this home into a money maker.

$179,500

Bank of Canada keeps interest rates on hold

“The Bank said it expects the pace of growth going forward to moderate by more than initially thought, but the forecast for growth this year has actually been raised slightly,” said CREA Chief Economist Gregory Klump. “That reflects a weaker than previously expected growth profile for the first half of 2012, followed by an acceleration in the second half of the year.”

“The Bank reiterated that its outlook remains subject to downside risks from the sovereign debt issue in Europe. Recent credit-rating downgrades to much of the euro zone point to potential contagion by way of a drop in financial market liquidity,” he added. “The bottom line is that the Bank rate is not going to be going up anytime soon, and we may see rates lowered should downside risks materialize.”

The Bank noted that “while the economy appears to be operating with less slack than previously assumed, it is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October.” Overall, inflation expectations remain “well-anchored.”

A number of financial institutions have recently dropped their five-year lending rates to a record low of 2.99 per cent. This is down considerably from the advertised five-year rate of 5.29 per cent when the Bank last met on December 6^th, 2011.

The Bank will make its next scheduled rate announcement on March 8^th, 2012.

Copyright CREA reprinted with permission

Bank Sale - South Slocan $179,500

MLS# K205932
Bank Sale – priced 25,000 below appraised value the home needs some TLC but offers the right buyer a great opportunity to turn this home into a money maker. Central to Nelson and Castlegar this single family home currently has 3 separate living spaces and lots of potential to convert your efforts into equity.

$179,500

Robert Goertz

Valhalla Path Realty

250-354-8500

robert@kootenayconnector.com

Mortgage Rates

There are some great mortgage rates available right now.  Here are some that I received from a mortgage broker yesterday: 

3 year     2.89%
4 year     2.99%
5 year     3.19%

If you are thinking of buying this spring, make sure you get pre-appoved for your mortgage. 

Housing Market Update (January 2012)

Watch BCREA Chief Economist Cameron Muir discuss the December 2011 statistics and an in depth look at 2011 in review:

Home Sales Increase Last Year

The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through Multiple Listing Service® (MLS®) in BC climbed 14.2 per cent to $43.1 billion in 2011. A total of 76,721 homes were sold in BC in 2011, up 2.8 per cent from 2010. The average annual MLS® residential price climbed 11.1 per cent to $561,304 over the same period.

“Low mortgage interest rates and gradually improving economic conditions contributed to a moderate increase in consumer demand last year,” said Cameron Muir, BCREA Chief Economist. “BC home sales came in about on par with their 15-year average, but fell well below their ten-year average of over 88,000 units.” 

Vancouver, the Fraser Valley and the North experienced the largest percentage increase in unit sales last year, while consumer demand edged lower in Victoria and on Vancouver Island.

BC residential unit sales in December dipped 3.9 per cent to 4,090 units, while the average MLS® residential price was 2 per cent lower than in December 2010.  

Copyright BCREA reprinted with permission

Ainsworth Hot Springs Log Home For Sale

Canadian home sales edge higher in December

According to statistics released today by The Canadian Real Estate Association (CREA), national resale housing activity posted an increase from November to December 2011.

Highlights:

• Sales activity rose 1.8 per cent from November to December.
• Annual activity totalled 456,749 sales in 2011, up 2.2 per cent from 2010.
• The number of newly listed homes increased 3 per cent from November to December.
• A simultaneous increase in sales and new listings kept the national resale housing in balanced territory.
• The national average home price was up just 0.9 per cent on a year-over-year basis in December, marking the smallest increase since October 2010.

Sales activity recorded through the MLS® Systems of Canadian real estate Boards and Associations rose 1.8 per cent from November to December 2011, marking the fourth consecutive monthly increase.

Activity rose in more than half of all local markets, including some of Canada’s most active, with monthly declines posted in most of the remaining markets.

Actual (not seasonally adjusted) national sales activity came in 4.6 per cent above year-ago levels in December. It also stood above the five- and ten-year average for December sales.

A total of 456,749 homes traded hands via Canadian MLS® Systems in 2011. This stands broadly in line with the average over the past ten years, and represents an increase of 2.2 per cent from annual levels reported in 2010.

“The momentum in sales activity provides clear evidence that low interest rates continue to draw homebuyers to the housing market,” said Gary Morse, CREA President. “While buyers have become increasingly cautious, the hand off for sales activity going into the New Year suggests that Canada’s housing market will continue to benefit from low interest rates in 2012, and continue making a significant contribution to Canadian economic activity. Even so, prospects among housing markets and neighbourhoods differ, so buyers and sellers should talk to a local REALTOR® to understand how trends are shaping up where they live.”

The number of newly listed homes rose three per cent on a month-over-month basis, reversing an equivalent monthly decline in November. New listings rose in almost 70 per cent of local markets, including some of Canada’s most active.

With sales and new listings having climbed in tandem, the national housing market remained in balanced territory in December. The national sales-to-new listings ratio, a measure of market balance, stood at 54.8 per cent in December, down slightly from 55.5 per cent in November.

Based on a sales-to-new listings ratio of between 40 to 60 percent, just over half of local markets in Canada were balanced in December. This result is little changed from November.

The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand. Nationally, it stood at 5.8 months at the end of December, down from 5.9 months at the end of November. While it has held fairly steady near six months since April 2011 onward, it peaked in August, with December marking the fourth monthly decline and a return to where it stood at the end of the first quarter.

The actual (not seasonally adjusted) national average price for homes sold in December 2011 was $347,801. This stood just 0.9 per cent above the average selling price in December 2010, marking smallest increase since October 2010.

“Momentum for national sales activity and average price remains positive but is slowing, which suggests that the continuation of low interest rates is not causing the Canadian housing market to overheat,” said Gregory Klump, CREA’s Chief Economist. “High end home sales seem unlikely to spike again in the first quarter like they did at the beginning of 2011, so national average price momentum may wane further over the next few months. With interest rates widely expected to remain low throughout 2012, homeownership will remain affordable, and continue to support home sales activity.”

Copyright CREA Reprinted with permission

Nelson BC Heritage Home virtual tour

3417 Loon Lake Rd

The Great Outdoors. If you are looking for that magical place that is just steps from the outdoors yet close to town then this is it. Located just above the Ainsworth Hot Springs Resort, this 3 bedroom, log home offers it all. Whether you are a full-time resident or looking for that perfect getaway retreat, this is the place to be revitalized. It sits on 17 plus acres, offers views of Kootenay Lake and provides the owners with lots of privacy. Outside there is a large detached shop which was recently used as a woodworking studio while the interior of the home features a custom kitchen. This is a functional, warm and well maintained home that is your opportunity to enjoy the incredible lifestyle that is offered here in the Kootenays. $429,900

Robert Goertz

250-354-8500

Valhalla Path Realty

www.kootenayconnector.com

Home Sales Increase Last Year

The British Columbia Real Estate Association (BCREA) reports that the dollar volume of homes sold through Multiple Listing Service® (MLS®) in BC climbed 14.3 per cent to $43.1 billion in 2011. A total of 76,817 homes were sold in BC in 2011, up 2.9 per cent from 2010. The average annual MLS® residential price climbed 11.1 per cent to $561,026 over the same period.

"Low mortgage interest rates and gradually improving economic conditions contributed to a moderate increase in consumer demand last year," said Cameron Muir, BCREA Chief Economist. "BC home sales came in about on par with their 15-year average, but fell well below their ten-year average of over 88,000 units."

Vancouver, the Fraser Valley and the North experienced the largest percentage increase in unit sales last year, while consumer demand edged lower in Victoria and on Vancouver Island.

BC residential unit sales in December dipped 1.7 per cent to 4,186 units, while the average MLS® residential price was 2.8 per cent lower than in December 2010.

Copyright BCREA reprinted with permission

Five Tips for a Quick Home Sale

Spring is always a popular time of year for people to put their homes on the market. Perhaps it’s because they’ve had a long, cold winter to spend a lot of time indoors, and they’re anxious for new surroundings. Or maybe it’s because Spring offers a fresh start and represents opportunity for the months to come.

Regardless of why you decide to sell your home, there’s no doubt that you would like it to sell quickly and at the right price.

Following are five tips to help ensure smooth sailing when it comes time to sell your home.

1. Work with a pro. To ensure a quick sale, you have to be sure your buyers can afford to pay what they offer. Experienced real estate agents take precautions to make sure buyers are not overreaching their grasp. And based on our negotiating expertise, we can work with buyers and negotiate contracts that do not, as a rule, tend to fall through. We also bear all the costs of advertising your home. This can seem minor at first, but newspaper ads and signage can quickly add up. And, best of all, we work for you. It’s in our best interest to ensure your home sells fast and you’re pleased with the price you receive for your home.

2. Price accordingly. As your local real estate experts, we’re in the know when it comes to what’s selling in your marketplace. We have access to a database of statistics that enable us to help you set a price that will make your house attractive to buyers without undercutting your bottom line. After all, if your home stays on the market for an extended period of time, the process can become extremely hard on you and your family – especially if you have your eye on another home.

3. Set the stage. Aside from pricing your home accurately from the onset, the way your home is seen by potential buyers is the next most important aspect in ensuring a quick sale. Getting your house ready to sell can help you connect with buyers on an emotional level that enables them to picture themselves and their families living in your home. With the popularity of home decorating and renovation programs on TV, people are more accustomed to looking at houses with an eye for design. But this doesn’t have to cost you a fortune. The most important first step is getting rid of clutter and personal items so potential buyers can picture themselves easily moving in their belongings.

4. Go where the buyers are. If you want a quick sale at the best price, it only makes sense to compete on the biggest market – and there’s no question that the biggest market in Canada is the Multiple Listing Service (MLS). Going it alone means relying on you and, while that may sound appealing to some, the numbers argue against it.

5. Create word of mouth. Finally, if you have a home that one of your friends or acquaintances has often admired, put the word out to your friends and ask them to spread the word. Doing so could help you avoid the stress of staging and hosting open houses, and get you the quick sale you’re seeking.

Choosing Your Mortgage Amortization

Selecting the length of your mortgage amortization period – the number of years it will take you to become mortgage free – is an important decision that will affect how much interest you pay throughout the life of your mortgage.

While the lending industry’s benchmark amortization period is 25 years, and this is the standard that is used by lenders when discussing mortgage offers, and usually the basis for mortgage calculators and payment tables, shorter or longer timeframes are available – to a maximum of 30 years. 

The main reason to opt for a shorter amortization period is that you will become mortgage-free sooner. And since you’re agreeing to pay off your mortgage in a shorter period of time, the interest you pay over the life of the mortgage is, therefore, greatly reduced. 

A shorter amortization also affords you the luxury of building up equity in your home sooner. Equity is the difference between any outstanding mortgage on your home and its market value. 

While it pays to opt for a shorter amortization period, other considerations must be made before selecting your amortization. Because you’re reducing the actual number of mortgage payments you make to pay off your mortgage, your regular payments will be higher. So if your income is irregular because you’re paid commission or if you’re buying a home for the first time and will be carrying a large mortgage, a shorter amortization period that increases your regular payment amount and ties up your cash flow may not be the best option for you. 

The key is to select the amortization that best suits your unique requirements and ensures you have adequate cash flow. If you can comfortably afford the higher payments, are looking to save money on your mortgage or maybe you just don’t like the idea of carrying debt over a long period of time, opting for a shorter amortization period may be ideal for you. 

Advantages of longer amortization

Choosing a longer amortization period also has its advantages. For instance, it can get you into your dream home sooner than if you choose a shorter period. When you apply for a mortgage, lenders calculate the maximum regular payment you can afford. They then use this figure to determine the maximum mortgage amount they are willing to lend to you. 

While a shorter amortization period results in higher regular payments, a longer amortization period reduces the amount of your regular principal and interest payment by spreading your payments out over a longer timeframe. As a result, you could qualify for a higher mortgage amount than you originally anticipated. Or you could qualify for your mortgage sooner than you had planned. Either way, you end up in your dream home sooner than you thought possible. 

Again, this option is not for everyone. While a longer amortization period will appeal to many people because the regular mortgage payments can be comparable or even lower than paying rent, it does mean that you will pay more interest over the life of your mortgage. 

Still, regardless of which amortization period you select when you originally apply for your mortgage, you do not have to stick with that period throughout the life of your mortgage. You can always choose to shorten your amortization and save on interest costs by making extra payments when you can or an annual lump-sum principal pre-payment. If making pre-payments (in the form of extra, larger or lump-sum payments) is an option you’d like to have, you should ensure the mortgage you end up with will not penalize you for making these types of payments. 

It also makes good financial sense for you to re-evaluate your amortization strategy every time your mortgage comes up for renewal (at the end of each term of your mortgage, whether this is three, five, 10 years, etcetera). That way, as you advance in your career and earn a larger salary and/or commission or bonus, you can choose an accelerated payment option (making larger or more frequent payments) or simply increase the frequency of your regular payments (ie, paying your mortgage every week or two weeks as opposed to once per month). Both of these features will take years off your amortization period and save you a considerable amount of money on interest throughout the life of your mortgage.