CANMORE REAL ESTATE TEAM NEWSGRAM
JUNE / JULY 2019




Scroll Down for the Latest Exciting Canmore Market News and Statistics

We Work Hard to Keep You Informed:
Notes from Your Team ~ Jordy & Jim
2019 is Continuing to be Very Active!!
As we move through June and get excited for what spring and summer will bring to Canmore and Banff, the real estate market has continued to stay strong. Last year we saw an increase in our active listing inventory from January through May of 36% and this year we have only seen an increase of 19%. Keep in mind that our inventory in January 2018 was quite low but we are finding that buyers in certain market segments are having to be more patient to find what they are looking for and when they do find it are having to move quickly to secure it. 

The market as a whole does seem quite balanced as we continue to have buyers that are hesitant to overpay so we are seeing some tougher negotiations with some buyers willing to walk away.
 
Our sales data for April is a little skewed as the total includes 30 sales that actually took place in the few months previous. (new construction sales) Without those listing our activity year over year for the month of April was down but with those additional sales and the dominating performance of year over year sales in March the market is showing great signs.
 
Canmore and Banff are ready to celebrate Canada Day again on July 1st. If you have not taken part in the festivities you should really take the opportunity to come out. For Canmore take a look here for more details:
 
 
For Banff go here:
 
 
As always thank you for choosing us in your buying and selling! Should you know of anyone else who may be interested in buying or selling please let us know, we are never too busy for your referrals.
Our Featured Listings
57 Lakeshore Drive, Kananaskis

Luxury Chalet - Mountain & Lake Views!

5 Bedrooms, 3.5 Bathrooms

419C - 101 Montane Road

Excellent 1/4 Share Revenue Condo!

"D" week is also for sale, giving you half ownership!

2 Bedrooms, 2 Bathrooms

4 - 1061 Evergreen Circle

CONDITIONAL SALE

Mountain Views near CNC & Quarry Lake!

3 Bedroom, 4 Bathroom

210 - 901 Mountain Street

SOLD

Rare Vacation/Revenue Condo!

2 Bedroom, 2 Bathrooms
204 - 707 Spring Creek Drive

PRICE REDUCED

Creekstone Mountain Lodge Condo!

2 Bedrooms, 2 Bathrooms

6D Otter Lane, Banff

SOLD

Plenty of Sun & Privacy!

3 Bedrooms, 2 Bathrooms
402- 3&4 - 191 Kananaskis Way

SOLD

1/2 Share Fractional Ownership!

3 Bedrooms, 3 Bathrooms
433 - 160 Kananaskis Way

Top Floor with SW Views!

2 Bedrooms, 2 Bathrooms

300 2nd Avenue, Dead Mans Flats

SOLD

Secluded Condo!

2 Bedrooms, 1 Bathroom
6 - 200 Elk Run Blvd.

SOLD

On the Sunny Side!

3 Bedrooms, 3 Bathrooms
311 - 160 Kananaskis Way

Sunny West Facing Views!

2 Bedroom, 2 Bathroom

419D - 101 Montane Road

Excellent 1/4 Share Revenue Condo!

"C" week is also for sale, giving you half ownership!

2 Bedroom, 2 Bathroom

9-216 Three Sisters Drive

SOLD - $40,000 Above Ask Price. 4 Days on Market!

50+ Living - Walking Distance to Main St

2 Bedroom, 2 Bathroom
107C - 1818 Mountain Avenue

CONDITIONAL SALE

1/4 Share Fractional Ownership No GST!

2 Bedroom, 2 Bathroom
REAL ESTATE STATISTICS
GOODBYE, VARIABLE-RATE MORTAGE. EVERYONE'S GETTING FIXED THESE DAYS, AND FOR A GOOD REASON
Only the most dedicated variable-rate mortgage fans are staying loyal today.

Everyone else is moving over to fixed-rate five-year mortgages. Mortgage agent David Larock says 95 per cent of clients are choosing a fixed rate, compared with a 50-50 split between fixed and variable last summer. Mortgage broker Sandra Epstein says she’s doing almost exclusively fixed rate, while broker Mike Bricknell said fixed rate accounts for 90 per cent of his business right now.

“Everything is kind of funnelling into the five-year fixed-rate mortgage,” Mr. Larock said.

Variable-rate mortgages have for decades been the savvy home owner’s go-to choice. You typically pay a lower interest rate for a variable rate compared with a fixed rate, and your borrowing costs adjust lower or higher when the Bank of Canada changes its trendsetting overnight rate. When interest rates plunged after the last recession, variable-rate mortgages were the place to be.

The Bank of Canada began nudging rates higher in summer 2017, but variable-rate mortgages held their own with borrowers. The 2018 Annual State of the Residential Mortgage Market in Canada study by Mortgage Professionals Canada shows that 30 per cent of mortgages purchased in 2018 had a variable rate and that 27 per cent of all mortgages were in this category.

For the moment, homeowners are largely avoiding variable-rate mortgages. Driving this trend is our slow-growth economy and its effect on interest rates. We now have short-, medium- and long-term interest rates that are very close to each other. Normally, rates step higher as you go from short- to medium- and long-term.

Variable-rate mortgages are influenced by short-term rates, while fixed-rate mortgages take their cue from longer-term rates. If both these rates are similar, the cost advantage of variable-rate mortgages fades.

Variable-rate mortgages were going for 2.95 per cent at a couple of national mortgage brokerage firms at midweek, while five-year fixed-rate mortgages were 3.09 per cent and 3.14 per cent. “When the difference between variable and fixed rate is this narrow, I just don’t think the risk-reward trade-off is compelling,” Mr. Larock said.

The usual gap between variable and fixed rates saves you money on interest, and it provides you with a margin of safety. The CMP study found that five-year variable-rate mortgages were on average 0.55 of a percentage point cheaper than five-year fixed-rate mortgages last year and 0.7 of a point cheaper in early 2019. With this differential on rates, the variable-rate mortgage remains cheaper than a fixed rate even if the Bank of Canada’s overnight rate rises a couple of times.

One reason to still consider variable-rate mortgages is that you believe the economy’s weak spell in early 2019 signals a slump that will require the Bank of Canada to cut rates. Mr. Larock said it’s possible this happens and that variable-rate mortgage holders end up saving money. His complaint about variable-rate mortgages is that there’s not currently enough reward to offset the risk of higher rates down the line.

Another reason to go variable, at least with a big bank supplying your mortgage, is that you might need to break your mortgage before the end of its term. The penalties for breaking a fixed-rate mortgage at a big bank are unconscionably large, but penalties on variable-rate loans are more modest. Note: Mortgage lenders accessible through brokers often have more reasonable penalties for breaking fixed-rate mortgages than big banks.

Mr. Bricknell, the mortgage broker, said some lenders are offering deals on three-year fixed-rate mortgages that undercut five-year fixed rates. One major bank had a special rate this week of 3.19 per cent for a three-year fixed-rate mortgage and 3.29 per cent for a five-year fixed.

But for the most part, today’s quirky interest-rate environment has ruined short-term fixed-rate mortgages as a way to save money over a five-year term. At those mortgage brokerage firms mentioned earlier, fixed terms of one through four years were more expensive or identical to fixed five-year rates.
When interest rates return to a normal, expect variable-rate mortgages to regain their appeal. For now, homeowners seem to agree that fixed is better.

CANMORE/BANFF REAL ESTATE TEAM

REAL ESTATE ADVENTURE SERIES
Rock & Real Estate
On Sunday July 7, 2019, join us for a safe day of rock climbing at a local rock climbing area. You will be able to ask questions about selling and buying, and we will provide an overview of current and forecast market conditions; all while enjoying climbing with a Mountain guide and ex-Park Wardens! All abilities and ages welcome. Please contact us for more information. Space is limited.
KITCHEN SURVEY
Update: Which is your Favourite Kitchen?

Tied! These are the 2 Winners!
210 - 901 Mountain Street

SOLD
204 - 707 Spring Creek Drive

More info available in our "Featured Listings" above or Click Here!
FAVOURITE SEASON SURVEY
BEST "DEALS"?
Several folks have contacted us wondering what the best “Deals” in Town might be. With respect to foreclosures, banks often will not accept a condition regarding financing therefore Buyers need to bring cash to the table for the purchase, then arrange a mortgage AFTER the purchase. 

Our experience has been that Lending Institutions that manage foreclosures often lend money to themselves at very low rates and thus they are not overly-motivated to sell at a discount. So-called “deals” may not be easy to acquire but let us help you see what is possible with foreclosures. 

Jordy Shepherd & Jim Mamalis, Associates
Lana Nashchuk, Assistant
403.493.4663

www.BanffRealEstate.ca