This article was written by the Canadian Press June 15, 2009.
Resales of existing Canadian homes showed continuing improvements in in May, with both the number of transactions and the national average price on the rise, according to the Canadian Real Estate Association.
There were 49,521 existing homes sold in May, less than one per cent below the comparable month of 2008. The national average sale price in May hit the highest monthly level on record, at $319,757, which was up four-tenths of a percentage point from the previous record in May 2008.
The real-estate association said the dollar value of sales through its members reached $11.4 billion in May, up 10 per cent from the previous month and more than 50 per cent above the low of $7.5 billion in January. The association said the the rebound in activity was led in some of the most expensive local markets in Canada and that had the effect up pushing the national average price upward. On a seasonally adjusted basis, the number of sales in May was eight per cent above April’s and 43 per cent above the low point in January.
Although the number of resales has been rising, fewer properties have been put on the market through the Multiple Listing Service run by CREA members. New listings fell to a seasonally adjusted 65,070 units in May, 19 per cent below the peak reached a year earlier and the lowest since December 2005. “Inventory levels are still high in many markets, but fewer new listings and rising sales activity suggests that the selection of homes available for sale may shrink as the year progresses. The supply of homes up for sale needs to be drawn down further before average price increases become more widespread among local markets,” said CREA economyist Gregory Klump.
Are you thinking about buying a home in Kamloops and are wondering what role your credit score plays? I have included some information below regarding credit scores and mortgage financing and how it will affect your real estate purchase.
Your credit score, also known as a beacon score, is generated by 2 main organizations in Canada; Equifax and Trans Union. They have a system which tracks any personal loans, credit cards or lines of credit that you have. The system gives you a score somewhere between 300-900, with 300 being the worst and 900 being the best. In order to obtain the very best mortgage rates, you generally need to have a score of 660 or better, however exceptions are made when it makes sense. If your credit score is not this high, there are a whole other group of lenders willing to help you out, but generally at a higher cost.
What determines your score?
All of your creditors will report monthly to Equifax or Trans Union. They report how much you owe, what your monthly payment is, and whether you have made your payment on time. A record is kept for as long as you have the debt, showing how many times you have ever been 30 days late, 60 days late or 90 days late. It will also show if the account has ever been sent to a collection company. The longer that you have had credit reporting to the credit bureau without late payments, the higher your score will climb. Also, if you have credit cards or lines of credit, try to keep your outstanding balance under 50% of the limit. Points are deducted for high balances in comparison to the limit, late payments, collections, and too many inquiries for credit.
Important things to note:
Your utility bills, cell phone, gym membership, car insurance, etc., do not give you credit for paying on time. They will never show up on the credit bureau unless you don’t pay them. If you plan on arguing or disputing a charge with one of these companies, expect it to show up as a collection on your credit bureau and drastically lower your credit rating. It’s generally better to just pay the amount owing and dispute your case after the fact.
Unless your mortgage is with a credit union, it probably doesn’t report to the credit bureau either. So, even though you might pay your mortgage perfectly for 5 years, you won’t have any credit score at all unless you have established some unsecured personal credit. (ie..credit card, car loan, personal bank line of credit, etc)
Bankruptcy and Credit Counseling programs make it near impossible to qualify for a mortgage until you have been finished with the program for at least a year or two, and reestablished some new credit for another year or two. If you are considering one of these options, don’t just take your trustee’s advice. Make sure to talk to a mortgage broker about how this will affect your ability to purchase a home.
It is always important to be conscious of your borrowing habits as they will affect your credit score. Buying a home in Kamloops is a big commitment and you want to make the process as easy and as inexpensive as possible. Feel free to post any questions here about mortgages or contact me directly. I would be happy to help you out.
Brenda Colman, Mortgage Consultant, Invis KamloopsP. 250-318-8118 E. ac.sivninull@namlocadnerbW. www.BrendaColman.ca
The B.C. Real Estate Association released their Spring 2009 housing report recently. I have included the Kamloops specific information below from this report. Click here for the full report from BCREA.
Homes sales in Kamloops are beginning to rebound from the lows experience during the fall and winter months. While the weaker provincial economy will continue to impact housing demand, sales activity is expected to improve through the balance of the year. A sizable increase in affordability is beginning to increase first-time buyer activity in the marketplace. The combination of lower home prices and historically low mortgage interest rates has made homes more affordable than at any time in the last two years. At the beginning of April, the carrying cost on the average priced home was 24 per cent less than a year ago. An increase in first-time buyers lubricates the chain of ownership by allowing move-up buyers to more easily sell their current homes and complete their new purchase.
While home sales are expected to improve in the coming months, low sales levels in the first quarter will pull down the annual total. MLS® residential sales in Kamloops are forecast to decline a further 17 per cent to 1,860 units this year. A moderate improvement is expected in 2010, with MLS® residential sales expected to climb 8 per cent to 2,000 units.
Recent data suggests market conditions in Kamloops are improving. Active listings are trending lower with home sales edging higher. The large imbalance between supply and demand that was evident early in the year is beginning to wane. A continuation of this trend will likely cause home prices to stabilize in the next quarter. The average annual MLS® residential price is forecast to be 9 per cent lower this year. However, most of this decline has already occurred and more price stability is expected for the balance of the year.
Housing starts in the Kamloops CA will follow the provincewide pull-back this year. Housing starts are forecast to decline 45 per cent to 320 units in 2009 and then increase 14 per cent to 365 in 2010. Slowing growth in the housing stock will help stabilize home prices by reducing the total number of homes available for purchase in Kamloops.
Here are the Kamloops and District Real Estate Association’s latest statistics for May 2009. There are 313 fewer new listings this month over the same month last year. There were more home sales last year in comparison to this year. Many buyers have recently found that there are fewer choices in the Kamloops market in comparison to years past. Click on the image to enlarge.
Kamloops Real Estate Comparative Analysis By Property Type May 2009
Outstanding fully renovated bungalow with in-law suite in a desirable South Kamloops location. This home is walking distance to both the secondary and elementary schools, transit & all the downtown amenities. There also is a 2 bedroom in-law suite with separate entrance.
Some of the updates include both kitchens, all flooring, doors and hardware, light fixtures, both bathrooms (4 piece on main and 3 piece in basement), roof & detached garage.
There are hardwood floors & tile throughout the main floor & laminate down throughout the suite. There is shared laundry and extra storage. All the rooms in this home are very spacious and there is a gas fireplace in the living room.
Beautiful, flat yard with in-ground sprinklers and fruit trees. There is a new concrete patio with hot tub. Quick possession possible for this great South Kamloops home.
This Sun Peaks townhouse unit has it all! There are three bedrooms, three bathrooms and comes fully furnished. This 2-storey townhouse also has a two car garage. Large gourmet kitchen with granite counters, stainless steel appliances and a gas stove. Beautiful 35 foot vaulted ceilings in the bright and spacious living room with a gas fire place.
Three patios with one large deck off of the living room. Three piece bathroom on the main floor with granite counters. The master bedroom has a large four piece ensuite and private deck. Hot tub also included in the sale of this home. Tons of storage, walking distance to the village, lifts & other Sun Peaks amenities. This unit would be a great rental property or a home away from home.
To view more pictures of this property click here.
To search for other homes for sale in Sun Peaks click here.
Open houses this weekend will be in Juniper Heights.
Saturday, May 30th: #25-2050 Qu’appelle Blvd: 11:00am-12:00pm
Best Price in Juniper! Bright 3 bedroom unit with laundry & bedrooms up. Master bedroom has a large walk in closet. Center island in kitchen & 5 appliances included. Living room opens up to west facing patio. Central air, 2 bathrooms & single car garage. Pets & rentals allowed. $244,900
Saturday, May 30th: 2529 Qu’appelle Blvd: 12:15pm-2:15pm
Beautifully updated Juniper 2-storey home. Maple hardwood floors, slate tile, new light fixtures, new carpet, totally reno’d kitchen & bathrooms & new baseboards. Large master suite on 2nd floor with walk in closet. Living room has vaulted ceilings & gas fireplace. In-ground sprinklers, private yard with a secret garden above & 2 car detached shop. Close to elementary school & transit. $354,900