Dwain Anderson - Blog

January SRAR Stats

dwain.anderson@century21.ca — Wed, 01 Feb 2012 00:00:00 GMT

2012 BEGINS WITH A SELLERS MARKET

In 2012 we are starting out with a market that favors sellers. The number of residential properties listed in Saskatoon was 528 units, down only 1% from last January while the MLS® sales were up 20% to 310 units. This resulted in an increase in the average selling price of 6% to $318,163.00. There were a total of 951 active listings for January 2012 which was also down 1% from last January.

The $300,000.00 to $349,999.00 price range recorded the most sales at 68 units, an increase of 51% from 45 units in January 2011. The highest average sale price of $377,757.00 remains in the neighborhoods on the far east side of Saskatoon which also has the most active listings and units sold.

It is important to note that the average residential sale price is determined by taking the total month’s dollar volume and dividing that number by the total unit sales number from across the entire city of Saskatoon. The average sale price and percentage change should not be applied unilaterally as prices vary based on style of home, location and condition. Consumers wishing an accurate estimate of value for their home should contact a REALTOR® member to interpret sales data and provide a comparative market analysis tailored to their specific property.

Activity was slower in the areas surrounding Saskatoon. There were only 185 residential properties listed compared to 213 properties in January 2011 for a decrease of 13%. The number of sales was down 26% from 57 to 42 units year over year. In spite of this quieter activity the average residential sales price in the areas surrounding Saskatoon was up 3% from last January to $279,171.00.

The number of days to sell remained almost unchanged at 46 days within Saskatoon while listings in the area surrounding Saskatoon took 75 days on average to sell which is an increase of 25%. The area with the shortest time to sell continues to be the north end west of the river at 33 days on average.

If the supply of product continues to remain consistent with last year and if the anticipated increase in demand occurs, our city will remain in a sellers’ market with buyers competing for their purchases. It is expected that Saskatoon will continue to buck the softening price and activity trend taking place across Canad

A 10 year mortgage?

dwain.anderson@century21.ca — Mon, 30 Jan 2012 00:00:00 GMT

10-year mortgage is worth a look

A 10-year mortgage offers security, peace of mind and a gap between five-year rates that makes it particularly attractive.

Shutterstock/Shutterstock

By Kerri-Lynn McAllister | Sun Jan 29 2012

More than 90 per cent of Canadians with a mortgage take out a term of five years or less, and just 1 per cent opt for a term that is 10 years or more, according to the Canadian Association of Accredited Mortgage Professionals.

But with 10-year mortgage rates at a record low of 3.79 per cent, it might be time to reconsider the long-term mortgage and buck the national trend. It offers security, peace of mind and a gap between five-year rates that makes it particularly attractive.

Longer terms cost more because you’re getting that added security, and in the past, Canadians have been unwilling to pay. But with a mortgage price war pushing the five-year fixed mortgage to 2.99 per cent and the 10-year to just 3.79 per cent, the difference is just 0.8 per cent.

On a $250,000 mortgage the monthly difference between the two is around $100. That may be your price of a good night’s sleep. Two years ago, the spread was 1.5 per cent, which doubles the monthly difference to $200, or $2,400 per year.

That’s why the 10-year mortgage is so much more attractive now. Here are four reasons to consider it:

Small down payment: If you have a small down payment, you have a big mortgage. A 10-year term protects you from rising interest rates for twice the length of time as a five-year term. During the first five years of a high-ratio mortgage, most of the payments have traditionally gone towards interest. It's a better balance now, but if at the end of five years you’ve paid very little principal and rates are higher, you may not have much room to increase the amortization and maintain the same payment. A 10-year term offers that much more breathing room.

Peace of mind: A 10-year term makes household financial planning and budgeting that much easier. This is particularly true for real estate investors who want to take the risk out of financing and budget cash flows.

Smaller penalties: Many people avoid the 10-year mortgage because they don’t want to be locked in for such a long period of time. They are also afraid of the size of the penalty if they break it. But, you will actually pay a smaller penalty for breaking a 10-year mortgage in some cases, than if you break a five-year mortgage part way through. After the five-year mark in a 10-year term, you will only have to pay three months interest to break your mortgage per Canadian legislation.

Breaking a fixed mortgage with terms of five years or less is subject to an Interest Rate Differential (IRD) penalty which is typically much higher.

Less long run interest: You could end up paying less interest in a 10-year mortgage than with two consecutive five-year terms, if rates rise. Although you pay more in the first five years with a 10-year rate than a five-year rate, you could save in the second half of your 10-year term.

Given that rates are at historic lows, they have nowhere to go but up, though how far and when is unknown. What is certain is that mortgage rates would have to remain below long-term averages for two consecutive five-year terms to win out.

Of course, your circumstances can change over time. So make sure that whatever term you choose your mortgage is transferable from one house to another. The 10-year mortgage deserves a closer look. After all, deals like this do not come along every day.

Also read: Why it's a good time to buy a home

Kerri-Lynn McAllister is the community manager forRatehub.ca a site that compares Canadian mortgage rates.

Air Miles Update

dwain.anderson@century21.ca — Thu, 05 Jan 2012 00:00:00 GMT

Introducing AIR MILES® Cash

On December 28, 2011 LoyaltyOne launched AIR MILES Cash. Collectors can activate their Account at airmiles.ca/cash, and start building their Cash balance. To learn more about how AIR MILES Cash works, visit airmiles.ca/cash.

Starting in March and rolling out throughout the spring of 2012, Collectors will be able to redeem reward miles from their Cash balance towards everyday and high value purchases made at the following participating Sponsors:

Shell (national)
RONA (national)
Metro (Ontario)
Rexall (Ontario), and
Jean Coutu (Quebec)

Once they earn 95 reward miles they can get $10 off instantly at checkout. Collectors can redeem in $10 increments up to a maximum of $200 per day, including taxes.

Click here for more information.

LoyaltyOne Implementing AIR MILES reward miles Expiry

LoyaltyOne has announced that effective December 31, 2011, all AIR MILES reward miles will have a date-stamp of five years. This means that all reward miles that were posted to a Collector’s account on or before December 31, 2011 will need to be redeemed by December 31, 2016 and all reward miles posted after December 31, 2011 will have a five year shelf life by which Collectors will need to be redeemed.

It’s important to note that the expiration of reward miles will not affect the majority of AIR MILES Collectors who regularly earn and redeem reward miles, including even those who save up for several years for larger rewards or trips. The average Collector who redeems does so within two-and-a-half years.

No action is required by Collectors at this time, and more information will become available in 2014 to help AIR MILES Collectors manage reward miles well in advance of expiration.

Click here for more information.

Kensington--New westside neighbourhood

dwain.anderson@century21.ca — Wed, 04 Jan 2012 00:00:00 GMT

Open House - Kensington Neighbourhood Concept Plan - Centennial Drive and Diefenbaker Drive Connections Area residents are invited to a public open house regarding the proposed Kensington Neighbourhood development on Wednesday, January 11, 2012, from 6:30 p.m. – 9:00 p.m. at the Shaw Centre – Tommy Douglas Collegiate Community Gym. The intent of this meeting is to provide area residents with information on numerous Kensington developer and City of Saskatoon jointly funded traffic calming initiatives proposed for Diefenbaker Drive and Centennial Drive. This meeting will be an open house format, and area residents will have an opportunity to provide comments on the proposed traffic calming initiatives. City of Saskatoon staff will be in attendance to answer questions. Wednesday, January 11, 2012 Shaw Centre – Tommy Douglas Collegiate Community Gym 130 Bowlt Crescent 6:30 p.m. – 9:00 p.m. (come-and-go) The City of Saskatoon has previously held two public information meetings with regard to the proposed Kensington Neighbourhood. The primary concerns received at these meetings were related to traffic and pedestrian safety on Centennial Drive and Diefenbaker Drive after connections to Kensington are established. The City of Saskatoon and the Kensington land developers have considered these concerns and have designed a number of traffic calming initiatives along Centennial Drive and Diefenbaker Drive in an effort to improve traffic and pedestrian safety. Details of the traffic calming methods will be provided at the open house. The Kensington Neighbourhood is a proposed new 511 acre residential neighbourhood bounded on the east by Confederation Park and Pacific Heights, on the south by 22nd Street West and the Blairmore Suburban Centre, and on the west and north by agricultural lands. The neighbourhood will accommodate one-unit dwellings, low-density townhouse units, medium-density apartment-style and stacked townhouse-style units, and mixed-use units combining residential with neighbourhood retail, office, and service uses. Completion of this neighbourhood is estimated to be 10 to 15 years.