Listing Status Report Jan 1 - Oct 31, 2011

LISTING STATUS REPORT
1-Jan-2011 TO 30-Oct-2011

	RESIDENTIAL	COMMERCIAL	MULTIFAMILY	FARM	TOTALS
ACTIVE	1285	193	29	25	1532
SOLD	2390	93	50	44	2577
CONDITIONAL	45	6	0	0	51
EXPIRED	1546	236	26	43	1851
CANCELLED	716	41	9	21	787
WITHDRAWN	111	6	1	2	120
TOTALS	6093	575	115	135	6918

LISTING STATUS REPORT
1-Oct-2011 TO 30-Oct-2011

	RESIDENTIAL	COMMERCIAL	MULTIFAMILY	FARM	TOTALS
ACTIVE	292	35	12	6	345
SOLD	207	6	8	4	225
CONDITIONAL	29	6	0	0	35
EXPIRED	276	35	3	3	317
CANCELLED	89	5	5	1	100
WITHDRAWN	9	2	0	0	11
TOTALS	902	89	28	14	1033

Market to remain Steady says Canada Mortgage and Housing Corporation’s third quarter housing report

New home construction is anticipated to see very modest growth in 2012 with an estimated 183,900 housing starts verses the 183,200 estimated by year end for 2011.  Resale of existing properties is set to follow the same pattern with an estimated total of 458,000 transactions over the 2011 number at 446,700.

What does this mean for the Mortgage Brokerage Industry in Canada? 

With the relatively flat projection it means that we will still see a strong real estate market.  With very moderate growth projected, 2012 is a year where the brokerage community will need to enhance their client communication and marketing strategy.  The ability of the mortgage broker to have strong relationships with the consumer based on providing sound expertise gives us an edge when looking for growth opportunities.  Consumers are more and more seeking options when pushing forward with the largest financial transaction of their lives.  With the banks continuing to push for a market share grab, and the overshadowing uncertainty of the world’s economic climate, the broker channel is uniquely positioned to give comfort with a focus on what is best for the consumer verses selling one product line that is aggressively cross sold.

Consumers in Canada continue to experience credit strain as indicated by a recent Royal Bank report where 38% of Canadians now indicate that they are not as comfortable with their level of consumer debt as they were 12 months ago.  This combined with an ever more aggressive program of pushing unsecured lending by the banks, means that the trend for continued expansion of personal debt will rise.  Place the burden of additional mortgage lending restrictions into the mix and the need for sound advice grows stronger.  Consumer Proposals are continuing to see a dramatic increase as people seek out solutions to their debt woes especially as the banks and other lenders do not offer solutions that focus on long term solutions.

All indicators tell us that keeping in touch with clients with relevant and timely information is the foundation to creating a strong and diverse portfolio of clients.  Being able to offer clients sound advice, and additional options on credit and debt management will become ever more important as we move into the New Year.

Giving Thanks to Low Mortgage Rates

At this time last year, sitting around the feast laden table, many economic forecasts indicated that mortgage rates would be on the rise in 2011. Here we are on the fleeting end of the year and rates for the most part have remained at a historical 30 year low.

Although prime rate remains unchanged, a noticeable trend over the second half of the year seems to be the pricing by the mortgage facilitators or lackthereof on any variable rate products offered. This said most lenders are offering prime minus -0.30% to -0.60% of which still remains a ridiculously great rate, should one be tempted to the fate of the variable option, stay tuned for our discussion on fixed versus variable mortgages.

So should you need to search the corners of your mind to find something to be thankful for, here it is - Prime rate has been below 10% since May 1991, and one has to wonder whether or not we will ever see double digit rates lending again.

With increased purchase power, affordability is relatively attainable in the majority of Canadian cities. As more Generation X and Y’s move into homeownership and Boomers are buying the vacation or pre-retirement homes, now is the time to make the leap of faith. Equity and prices have leveled off in almost every major city with of course the notable exception of Vancouver.

Here are some fun facts for you, while we are talking about increased purchase power:

• 1981 Prime Rate 22.75% based on mortgage of $300,000 and an amortization of 25 years, the monthly payment would be $5460.28

• 2011 Prime Rate 3.00% based on mortgage of $300,000 and an amortization of 25 years, the monthly payment would be $1419.74

What does this mean to you? With the likelihood that mortgage rates will rise in 2012 now is the time to look into early renewal options, refinancing or making that purchase you have been holding off on.

Constantine Isslamow
T. 705.743.6235
CENTUM Core Financial Inc.

Licence #: 10642

constantine_isslamow@centum.ca