Happy New Year
Happy 2013
As I look to this new year, I am bombarded with mortgage news and
predictions, just as you are; as we all know; the more bolder the headlines the
more readers read, which sell more newspapers, subscriptions etc. So, today I
will dig for all the 2013 predictions and post them here and as we move
throughout 2013 we will see which predictions came true and which were just hot
air.
Background on the housing market
We still have historically low interest rates. People still want to build and live in the big houses, 1200 sq. feet just does not cut it anymore. With expenses going through the roof, like hydro, gas, water and property taxes, having those big houses deplete our free spending money, even with the low interest rates for our mortgages. More and more people are living paycheck to paycheck to be able to afford those big homes, even though they are making great incomes. The term is house poor. While trying to afford their big homes their credit cards are being maxed out, raising concerns that Canadians are getting more and more in debt as the year progresses.
2013 is the year to realistically look at your house expenses and decide weather it would be advantageous for you to move on down a few square feet , rent out a room or reconfigured your home with a Granny Suite. Where else can you cut down on expenses? Hydro only promises to raise the cost of electricity, property taxes are always going up to pay for ithe infrastructure of where we live.
Students and senor citizens are always looking for more economical places to live. Renting a room to them may be an avenue or if you not comfortable having a non family member in your home would it be feasible to build a Granny Suite.
Sometimes city bylaws or zoning will not allow for this, but as we are progressing to not being able to afford the big houses anymore and many lower income people need affordable. warm and safe places to live, the cities are coming onboard to allowing the secondary suites or more affectionally known as Granny Suites.
As mortgage professionals we have a product called Refinance Plus Improvements. Which would allow you to refinance your home, plus get extra money to put in a Granny Suite for the same low mortgage interest rate. Banks do not offer this product.
Now on to predictions for 2013
1. Moderation is the buzz word when discussing the other positives. The economy is still creating jobs and the US economy has recently shown improved job creation. If this persists, it will contribute to faster job creation in Canada.
2. Sales will be sluggish. Housing prices will decline by about 10%
3. Demand for resale homes from both first-time and repeat buyers will decline slightly in 2013 as the slow pace of economic growth, global financial uncertainty and less accommodating mortgage market conditions temper sales.
4. Improving economic conditions and stable home prices will support housing demand in the second half of 2013
5. Mortgage interest rates will stay low for 2013
6. Buyers will take a little bit more time to buy and the sellers will have to be more patient.
7. In 2013, condo sales will also stabilize, thanks to first-time buyers who will purchase more affordable condos and “empty nesters” who will likely purchase more extravagant condos
As with any predictions it is only an educated guess. Changes in the economy can dramatically affect the outcomes. It is a good time to buy if you are in the market for a home. Interest rates are low, housing prices are stable with only a projected decline of 10%, that may have already happened in the area that you live in.
For more information on mortgages, how to Refinance your home to make improvements or to build a Granny Suite, send me an email. My advice is always free.
Knowledge is power.
akroemer@mortgagegroup.com
Background on the housing market
We still have historically low interest rates. People still want to build and live in the big houses, 1200 sq. feet just does not cut it anymore. With expenses going through the roof, like hydro, gas, water and property taxes, having those big houses deplete our free spending money, even with the low interest rates for our mortgages. More and more people are living paycheck to paycheck to be able to afford those big homes, even though they are making great incomes. The term is house poor. While trying to afford their big homes their credit cards are being maxed out, raising concerns that Canadians are getting more and more in debt as the year progresses.
2013 is the year to realistically look at your house expenses and decide weather it would be advantageous for you to move on down a few square feet , rent out a room or reconfigured your home with a Granny Suite. Where else can you cut down on expenses? Hydro only promises to raise the cost of electricity, property taxes are always going up to pay for ithe infrastructure of where we live.
Students and senor citizens are always looking for more economical places to live. Renting a room to them may be an avenue or if you not comfortable having a non family member in your home would it be feasible to build a Granny Suite.
Sometimes city bylaws or zoning will not allow for this, but as we are progressing to not being able to afford the big houses anymore and many lower income people need affordable. warm and safe places to live, the cities are coming onboard to allowing the secondary suites or more affectionally known as Granny Suites.
As mortgage professionals we have a product called Refinance Plus Improvements. Which would allow you to refinance your home, plus get extra money to put in a Granny Suite for the same low mortgage interest rate. Banks do not offer this product.
Now on to predictions for 2013
1. Moderation is the buzz word when discussing the other positives. The economy is still creating jobs and the US economy has recently shown improved job creation. If this persists, it will contribute to faster job creation in Canada.
2. Sales will be sluggish. Housing prices will decline by about 10%
3. Demand for resale homes from both first-time and repeat buyers will decline slightly in 2013 as the slow pace of economic growth, global financial uncertainty and less accommodating mortgage market conditions temper sales.
4. Improving economic conditions and stable home prices will support housing demand in the second half of 2013
5. Mortgage interest rates will stay low for 2013
6. Buyers will take a little bit more time to buy and the sellers will have to be more patient.
7. In 2013, condo sales will also stabilize, thanks to first-time buyers who will purchase more affordable condos and “empty nesters” who will likely purchase more extravagant condos
As with any predictions it is only an educated guess. Changes in the economy can dramatically affect the outcomes. It is a good time to buy if you are in the market for a home. Interest rates are low, housing prices are stable with only a projected decline of 10%, that may have already happened in the area that you live in.
For more information on mortgages, how to Refinance your home to make improvements or to build a Granny Suite, send me an email. My advice is always free.
Knowledge is power.
akroemer@mortgagegroup.com
