| Select Mortgage Newsletters Archived Newsletters To subscribe, contact your broker or email subscribe to newsletter. Note: current newsletter has been reformatted from its original format to fit webpage. For richer viewing, subscribe to our email newsletter. Newsletter - Spring 2008 Product Spotlight - Quick Close Mortgages You may have seen a number of lenders, including us, offering "Quick Close" mortgage rates. What does this mean? Lenders are offering special rates for mortgage transactions that close within a short period - usually 30-45 days. These rates are usually very attractive because the lender is not committed to hold the rate for the long term and isn't left vulnerable to changing market conditions. We have seen lots of interest rate changes recently, with more expected (see article below) and we are likely to continue to see "Quick Close" mortgage rates offered over the next while. Market News: Biggest Canadian Prime Rate Reduction since 2001 March 4th, the Bank of Canada dropped prime by a full half percent, the largest single reduction since 2001. The reduction was fueled by further deterioration in economic conditions in the United States that are spilling over into the global economy, including Canada. The next Bank of Canada interest rate meeting is scheduled for April 22 and analysts are predicting a further half point drop in an effort to keep Canadian inflation stable at about 2% per year.
U.S. Markets An unprecedented drop in US housing prices and the resulting explosion of negative equity positions - where borrowers owe more than the property is worth - will continue to drive up mortgage default rates. Analysts predict that by the time the US housing crisis is over, $300 Billion (yes billion) in mortgage write offs will have been made. It isn't over yet. Housing prices in the US are expected to continue to decline. The excess of available but unsold homes in the US currently sits at about a million homes. Basic supply and demand theory tells us that this can't be good for home prices, and further drops are to come. Concept Sources: CIBC World Markets. Read more at http://research.cibcwm.com/res/Eco/EcoResearch.html | RE/MAX Canada Decade in Review | | Residential Average Price 1997 vs. 2007 | | Data includes condos | | | 07 vs. '97 | | Market | 1997 | 2007 | % +/– | | Greater Vancouver | $287,094 | $570,795 | 98.8 | | Victoria | $218,398 | $466,974 | 113.8 | | Kelowna | $178,525 | $497,322 | 178.6 | | Calgary | $143,305 | $414,066 | 188.9 | | Edmonton | $111,587 | $338,636 | 203.5 | | Saskatoon | $98,270 | $232,754 | 136.9 | | Winnipeg | $86,040 | $187,456 | 117.9 | | Greater Toronto Area | $211,307 | $376,236 | 78.1 | | Halifax-Dartmouth | $109,827 | $216,339 | 97 | | Prince Edward Island | $86,403 | $133,457 | 54.5 | | National | $154,606 | $307,265 | 98.7 | | Source: CREA, Local Real Estate Boards, RE/MAX | Select Mortgage News: Two Victoria Offices Moving: Our Admirals Road office is moving downstairs in the same mall to retail space in May. The Westshore office is also moving to new ground floor retail space in May. We are pleased to be moving both offices to more visible and client friendly retail premises. MBABC Pioneer Award Our own Don Barr was presented with the Mortgage Broker Association of BC's Pioneer Award. Congratulations Don! Local Market Statistics Feb 2008 Average Prices Residential Detached: | Campbell River $310,722 | | Comox Valley $332,845 | | Nanaimo $377,233 | | Park/Qualicum $416,460 | | Pt Alb/W. Coast $221,578 | | Cowichan Vall. $377,233 | | Gr. Victoria $598,392 | | Coquitlam $642,244 | | Langley $563,182 | | Surrey $523,212 | | White Rock $880,121 | | Gr. Vancouver $744,744 | | Vanc. West $1,418,544 |
| Sources: VREB, VIREB, FVREB, Realtylink |
|
|
