Wednesday, November 30, 2011

Police search for DAVE COUSINS - West Kelowna News - Castanet.net

Police search for missing man - West Kelowna News - Castanet.net

I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty

C 250.878.3605O 250.768.8001

http://www.connectwithkaren.com/

Monday, November 14, 2011

West Kelowna Realtor ~ Karen Guy: Keeping the heat on in vacant properties

Recently I was out with clients viewing properties.  One of the last properties we viewed was a vacant listing without the heat on!  Wow, was it cold in there - so cold that we had to put our shoes back on because the ceramic tile on our toes was absolutely freezing.  We stayed for as long as we could because my clients really liked the property.  It took us a long time to warm up afterwards. :-)

The following week we went back for a second showing and the heat was on.  I knew that leaving the heat on in vacant properties makes a difference for showings,  but to experience that first hand was an eye opener as to how much more warm, and welcoming the property felt to us.  We stayed longer, a lot longer!  and I don't know how many times we commented to each other about how much more of a "home" the house felt.

The kitchen seemed more inviting, and feeling the warmth and looking at the beautiful rock work on the fireplace seemed to so much more like home.  In the end they did decide it was to be their future home and we are working on our deal right now.

For all you sellers out there with vacant properties make sure to keep your heat on just a little.  You may think that it is a waste of hydro and your money, but take my advice, you can't afford NOT TO.

I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty

C 250.878.3605
O 250.768.8001

http://www.connectwithkaren.com/

Tuesday, September 20, 2011














Coldwell Banker Presents: New Portal for First Time Home Buyers!

I am the GUY that will make a difference! I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Friday, August 26, 2011

Karen Guy, REALTOR® ~ Kelowna ~ Thoughts from the BC Chamber of Commerce

Aug 26, 2011 FOR IMMEDIATE RELEASE Vancouver (August 24, 2011) - The BC Chamber of Commerce today expressed disappointment over the loss of the HST referendum, noting that business confidence and certainty will be shaken, but is looking ahead to support a new & improved PST that could include some of the efficiencies and competitiveness of the HST model. "It's a disappointing decision that will have a profound impact on the economy, on business, on workers and on unions," said John Winter, President and CEO of the BC Chamber of Commerce. "While we respect the outcome of the referendum and the need to restore a PST/GST system our members have been clear, we need a dialogue on what that looks like and how we can create a tax system that protects BC jobs." "Given the fact that the vote was close and this vote signifies the beginning of a negotiation process with the federal government we do not need to make any hasty decisions," continues Winter. "Now is not the time for decisions, now is the time for reflection and a pause before we determine the best type of tax." The Chamber also expressed concern about the implications this decision will have on the provinces fiscal situation knowing that $1.6 billion will have to be returned to Ottawa as a consequence of rescinding the federal agreement. "Returning BC to a sound fiscal footing and balanced budgets is critical to our long term prosperity," said Winter. "With a $1.6 billion bill to pay, BC will be forced to extend the province's deficit-reduction schedule or incur new tax hikes and/or spending cuts. Business confidence, certainty and jobs are at risk." The BC business community will come forward to government with options on how to transition to the PST/GST as well as explore opportunities for a new consumption tax model.


I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®

Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Tuesday, August 23, 2011

Karen Guy, REALTOR® ~ BC Home Buyers are Moving Up Sooner Than Expected

B.C. home buyers are moving up sooner than expected

- 2011 TD Canada Trust Repeat Home Buyers Report finds three-quarters of repeat home buyers move earlier than they originally intended -

VANCOUVER, Aug. 23, 2011 /CNW/ - Nearly six-in-ten B.C. repeat buyers are moving on to larger or more luxurious homes - and they're moving sooner than expected.  In fact, the TD Canada Trust Repeat Home Buyers Report, which surveyed Canadians who recently bought or intend to buy a home that is not their first, found that three-in-four British Columbians are moving earlier than planned.  More than half (51%) had no intention of moving but now find themselves on the house-hunt again and 22% thought they would move again but not this soon. Not ones to settle, B.C. residents are experienced movers; they are the most likely in the country to have owned more than four homes in their lifetime (39% versus 29% nationally).

"Our research indicates that British Columbians aren't staying in one home too long," says Barry Rathburn, Manager, Residential Mortgages, TD Canada Trust. "There are costs associated with a move, so I'd recommend that people explore all of their options before making the decision to change homes.  It might be more affordable to renovate and make your current home work for you."

The top features British Columbians felt they compromised on when they purchased their previous home that they are not willing to budge on this time is the number of bedrooms (34%).  Other compromises that they won't make again include price (30%), features of the home (30%), layout of the home (28%) and number of bathrooms (26%).

"If you are dissatisfied with something like the layout or features of your home, a renovation can be a convenient option to save the hassle and expense of moving. A Home Equity Line of Credit will allow you to use the equity you've built in your home to finance the renovation.  Further, if you do ultimately decide to sell, the renovation could increase your resale value," says Rathburn.

British Columbians are among the least likely to have considered a Home Equity Line of Credit (HELOC) (37% versus 50% nationally).  Of those who would consider this financing option, nearly half (47%) say they would use it for the purposes of a renovation, but nearly as many (44%) would like to have it simply as a cushion. Thirty-nine percent would use the line of credit to invest.

Timing is everything: Canadians think it's a good time to buy - and to sell

B.C. buyers are the most likely in the country to say investment opportunities (26% versus 21% nationally) and market conditions (28% versus 21% nationally) played a factor in their decision to buy another home. This is a significant increase over 2010 when 21% said investment opportunities affected their decision to buy and 15% said market conditions. The large majority (81%) plan to sell their current home and four-in-five expect to sell at or above asking price (70% versus 62% in 2010).

Among those who have purchased a second home and do not plan to sell their previous home, more B.C. buyers this year said they will keep the first home as a rental property (54% versus 48% in 2010). They are also more likely this year to say the new home they're buying will be a vacation home (15% versus 10%) or that that a family member will be moving into their previous home (15% versus 3%).  Three in ten buyers say they will stay in their current home and the new home they buy will be a rental property.

"Buyers should keep in mind that if they are expecting to sell above asking price, it's likely they will need to also buy at above asking price," says Rathburn. "A home is, obviously, a very big purchase - especially if you will not be selling your previous home to put towards the cost. A mortgage expert at your bank can walk you through your financing options and show you strategies and products that may save you money and provide flexibility over the course of your mortgage."

Decisions, decisions! B.C. sellers know they have options but they haven't thought about them

The TD Canada Trust Repeat Home Buyers Report showed that 61% of B.C.'s repeat buyers have a mortgage on the home they are moving from and 60% will take out a mortgage on their new home.

In 2010, nearly one-in-five (18%) British Columbians who planned to sell their home didn't know they had options when it came to their mortgage.  This year, that number decreased to 14%.  Still, although they are aware of their options, nearly half (46%) haven't considered what they will do with their mortgage. Thirty-eight percent of sellers say they will bring their mortgage with them.  Only 2% say they will use it as a selling feature.

"It's just as important to consider your mortgage options as a seller as when you are buying. You may be overlooking your mortgage as an important selling feature of your home or you may be able to save money by keeping your low rate and bringing your mortgage terms with you. Talk to an expert to find out what option might work for you," says Rathburn.

About the 2011 TD Canada Trust Repeat Home Buyers Report

Results for this study were collected through a custom online survey conducted by Environics Research Group. A total of 1,025 completed surveys, including 131 in B.C., were collected between  June 16-28, 2011 of people who have either purchased a home that was not their first home within the past 24 months, or intend to purchase a home that is not their first home within the next 24 months.

About TD Canada Trust

TD Canada Trust offers personal and business banking to more than 11.5 million customers. We provide a wide range of products and services from chequing and savings accounts, to credit cards, mortgages and business banking, to credit protection and travel medical insurance, as well as advice on managing everyday finances. TD Canada Trust makes banking comfortable with award-winning service and convenience through 24/7 mobile, internet, telephone and ATM banking, as well as in over 1,100 branches - most open 8 'til late and many now open Sunday. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the sixth largest bank in North America.


I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Saturday, July 23, 2011

Karen Guy, REALTOR® ~ My mother was right!

and yours was too! ~ did your mother ever tell you to never leave the house without your "face" on, and clean underwear??  LOL.  Well, today as my son woke me up to drive him to work at 6.30 am I  might add (yuck) I literally got out of bed and grabbed the car keys and left the house.  Not even a quick check in the mirror!

Little did we expect to come across two motorcyclists at the bottom of Westside road, obviously one of them had taken a good bail.  He had slipped on some gravel and laid the bike down.  It must have just happened.  We drove by slowly and asked if they needed help but they said they were ok.

On my way back down the hill from taking Dylan to his ride for work, I stopped and asked if I could do anything at all (I had a first aid kit in my car) and if the one guy wanted to sit down. So, here's me still in my PJ's - no make-up, no hair done... trying to figure out how to help these guys. 

I didn't even have a bottle of water to offer him (yea I know what your thinking....I ALWAYS have water)  I felt so bad.  The guy was hurt, but nothing life threatening and the fire truck was just coming as I pulled away.

I sure you are ok buddy! 

That's my excitement for a Saturday.  I won't be leaving the house again with my PJ's on that's for sure.

I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR® Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Tuesday, July 19, 2011

Karen Guy, REALTOR® ~ TD Special Report: Moderation In Store For The Canadian Housing Market

Highlights from the report!

•    Relative to where they sat in 2011 Q1, national resale activity and average prices are projected to decline by 15.2% and 10.2% respectively over the next two years.
 
•    Restrained economic growth, higher interest rates, new mortgage borrowing rules and eroding home affordability help support our call for more moderate housing activity.
 
•    Fewer new home buyers and reduced investor appetite should also simmer new and resale condo activity.
 
•    In addition to our national perspective, we provide an in-depth overview of twelve major markets within this paper.
 
•    Over 2011-13, Calgary, Edmonton and Regina housing markets are set to lead the way.  Still, the term “leader” is relative as no market is slated to experience a boom over our forecast.  We simply have these regions doing better than the rest.
 
•    Given their recent run-up in activity, new condo supply and only subdued economic growth forecast, Toronto and Vancouver are expected to see a larger-than-average correction in both sales and prices relative to other regions.

For the full report, please visit the following:

www.td.com/economics

I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Wednesday, June 29, 2011

Karen Guy, REALTOR® ~ Buying a Home with no property disclosure statement filled out

I recently worked with a client to make a purchase on a home that had no Property Disclosure Statement (PDS) filled out.  The "owner" of the property was the Executor for the Estate.  In this case when a client has not lived in a home and therefore cannot speak to any of the questions posed on the PDS - the property disclosure statement becomes mute.  Lines are drawn through all the questions and it is noted on the last page of the PDS that "due to the client not living in the property they cannot legally to answer any of the questions".  Then, the client signs the PDS attesting to this.

This can be common in a lot of cases where the house was bought strictly for rental purposes and the owner has not lived there, or in the case of a death and where an executor or executrix has been appointed.

As we were getting down to the final days where we were to remove the financing subject on the property the insurer for the mortgage ordered an appraisal on the property.  In this case, as my mortage specialist pointed out,  the appraisal was ordered strictly due to the fact that the PDS could not be relied upon to answer any of the basic questions about the property.  High ratio mortgages do not usually require an appraisal.

So, just a tip that when working on an offer for a property where no disclosure statement is signed, leave yourself enough time with your subject to financing dates to allow an appraiser (should one be ordered).

Yesterday we were a bit anxious waiting for the appraisal report to hit the system as our subjects were due off yesterday.  So, at 5:00 at long last we finally got the word that all was good!  Failing that, it ws going to be a drive out to Penticton (that's where my client lives) to get signatures on an amendment and a new subject removal.

For more information about this, or any other questions you have about real estate, please call me! or send me an email.

I'm off to another education course today, have a good one!

I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Tuesday, June 28, 2011

Karen Guy, REALTOR® ~ Thinking of Buying in Kelowna | Are You Sitting on the Fence?

If you've been considering buying a house but you're still unsure, consider some of the personal and economic conditions that favor home purchases. If you find that a number of these signs ring true for you, it might be time to contact a real estate agent and start shopping.

1. You're Ready to Commit

First and foremost, if you're not ready to commit to owning a home, you should not buy a house. Home ownership comes with a plethora of responsibilities, including home maintenance, property taxes and the process of selling the property when it comes time to move.

Legal fees, moving expenses, and all of the incidental costs associated with buying a home can really add up. To make the most of these costs, it's best to plan on living in your new home for a stretch of time. Consider whether you have a stable job that will provide a solid income for a mortgage, and if there's any chance you'll have to relocate in the near future. If you feel you can commit to sticking with a home for at least five years, then it might be just the right time for you to buy. If you're typically a hardened commitment-phobe, remember that you can sell or rent your property if your situation changes dramatically. (For related reading, see Simple Ways To Invest In Real Estate.)

2. Owning Costs Less than Renting

If you've examined your budget and realized that your monthly payments associated with buying a home are less than you're currently paying in rent, it's time to consider a home purchase. Talk to your bank and look at what your mortgage payments would be for a variety of different properties and gauge what you can afford. Factor in any additional costs you may have to pay, such as condominium fees or extra utility bills, and compare your total costs to what you're paying in rent. If it's roughly the same or less, you could be saving money by purchasing a home - plus there's the added benefit that you'll be putting your monthly home expenditures toward your own home equity! (For related reading, see When Owning Your Home Doesn't Pay.)

3. Buyer's Market

When demand for housing is low and there's a wealth of properties on the market that aren't moving too fast, that's known as a buyer's market. You'll have a lot more bargaining power under these conditions than if you're buying in a seller's market, which is when demand for homes is high, resulting in few properties on the market that are selling fast. In a buyer's market, chances are you'll be able to negotiate a seller's list price down - sometimes quite substantially - and save yourself a lot of money in the process. (For more, see Rent To Own: Own To Rent.)

4. Low Interest Rates

When interest rates are low, it's a great time to look at buying a home. You will be able to get a reasonable interest rate on your mortgage loan, which can save you a lot of money in the long run. A home is generally the single largest purchase anyone makes, and the amount of interest tacked onto a mortgage really adds up over the years that you're repaying the loan. Even a difference of a fraction of a percentage point can make a pretty big difference over the long term. Consider a mortgage of $220,000. The difference between a rate of 4.2 per cent and 4.5 per cent results in an extra $13,993 paid toward interest over the course of a 30-year mortgage. That's a lot more than just pocket change.

5. Adequate Funds for A Down Payment

Having a hefty down payment helps in the same way as finding a low interest rate. Ultimately, the less you owe, the less you'll have to repay and the less you'll have to tack on for interest. If you find yourself with a nice lump of cash, putting it toward a home purchase is definitely a solid financial investment. Just think, you'll be building equity in your home which you'll see again when you sell, and you'll have somewhere to live in the meantime. Though it may be tempting to put the money toward a trip, a new car or a luxury shopping spree, the return on investment on these sorts of purchases - at least in the strict financial sense - can be rather disappointing. (For more, see 6 Ways To Come Up With A Down Payment On A Home.)

6. Seasonal

During the springtime, more house listings tend to come on the market. With the poor winter weather over and the kids nearly done school for another year, this seems to be the time when most people are willing to take on a move. Having more homes on the market means a wider selection - and a greater ability to negotiate price. However, this is also the time of year when more buyers are in the market. Circumstances will depend on your particular market conditions, but the arrival of spring typically revives the real estate market after quieter winters. Alternatively, if you're willing to move during the winter months, sometimes owners of homes that have been sitting on the market for a long time are more willing to negotiate. (For related reading, see Are You Ready To Buy A House?)

The Bottom Line

Occasionally, timing the buying or selling of your home may not be within your control, however, if you do have the opportunity to choose when you enter the market, doing it at the right time can save you a lot of money. Always remember that buying a home is a big commitment, so at the very minimum, you should never purchase a home without being completely sure that you're ready to take on the responsibility. If you're ready to commit and you find yourself with a number of other favorable factors like a low interest rate and a good sum of money you can put toward a down payment, then it's probably a great time to take the plunge! (For related reading, see Top 10 Features Of A Profitable Rental Property.)

© 2011 The Globe and Mail Inc. All Rights Reserved.

I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.8001
http://www.connectwithkaren.com/

Friday, June 24, 2011

Karen Guy, REALTOR® ~ Your Friday Morning Giggle

After a busy busy week (the Kelowna Real Estate market is picking up!!) this video brought me much needed laughter.

Thanks to Susan and Rudy for this!  Have a great weekend everyone..



I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®

Coldwell Banker Horizon Realty C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Wednesday, June 22, 2011

Karen Guy, West Kelowna REALTOR® ~ Is your website mobile friendly?

Here is a way to check http://validator.w3.org/mobile/
I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

West Kelowna REALTOR® Karen Guy ~ QR Codes ~ Great Video Clip

Here is a great blog I was directed to recently.... http://realestatemarketingmedia.blogspot.com/p/qr-codes.html

If you would like to know more about QR Codes and how they help us help you market your property in Kelowna give me a call.


I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.800

http://www.connectwithkaren.com/

Wednesday, May 25, 2011

Karen Guy, REALTOR® ~ West Kelowna ~ This is why Real Estate is Rewarding to me

I received this email from my client a few days ago.  We had an offer on their property but could not come together with terms acceptable to both parties and my clients decided that in their best interest, they should be staying where they are.  But, as a REALTOR®  when a home doesn't sell, does that mean that we didn't do our job?  Not at all, we work very hard in the hopes that our efforts and marketing attempts bring buyer's and seller's together but sometimes, for one reason or another, it just doesn't happen.

Receiving this letter makes these scenarios worth all the while.  Please read what she says.


Dearest Karen, I hope this finds you and finds you well.

I just wanted to touch base with you and thank you for such a superb job with all your efforts on selling our house in such a crazy time for the market.

Your undying attempts and enthusiasm have been second to none.   You were so on the ball with call backs, appointments, and following up with us that we were never left with guessing.

If our circumstances hadn't changed and we had to take our house off the market, I know that YOU would have sold our house.  We have bought and sold many houses in the past and you are by far the most incredible realtor we have signed with.  Thank you Karen for all your hard work, generosity and enthusiasm, you certainly made it easy and a pleasure to deal with.

When we do put the house back on the market, you can be assured that we will be using you again. I can't think of anyone else that we would rather use.

Thanks again Karen for being so amazing,

With much appreciation,

Greg and Bonne Dickie


Thank you Greg and Bonne for taking the time to express how you felt about the Customer Service you received!   Best wishes to you both.

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR®

I am the GUY that will make a difference!


Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Friday, May 13, 2011

Karen Guy, West Kelowna REALTOR® ~ First Time Home Buyer's Program

So your buyer says they qualify for the first time home buyer's program? Be sure to ask questions and determine that they must meet BE all of the following:


  • a Canadian Citizen or a permanent resident as determined by Immigration Canada,
  • a person who has resided in BC for 12 consecutive months immediately prior to the date of registration of the transfer, or who has filed two income tax returns as a BC resident within the last six years,
  • a person who has never, at any time, held a registered interest in a princial residence anywhere in the world (a principal residence is defined as the usual place where an individual resides), and
  • a person who has not previously received an FTHB (first time home buyer) exemption refund.
To download a brochure on the program, click here:  http://www.sbr.gov.bc.ca/documents_library/brochures/firsttimehomebuyer.pdf



I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.

Karen Guy, REALTOR® Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Sunday, May 1, 2011

Karen Guy, REALTOR® ~ Know the Market Before you Buy in Kelowna

Know the Market before You Buy


The asking prices of most homes on the market indicate the current state of the market, and usually mirror the prices for which other similar homes in the area have recently sold. In deciding upon a selling price, a home-seller must establish a balance between the desire to draw the highest offer and finding a price that will be reasonable enough to attract an appropriate pool of prospects, and competitive offers. While most selling REALTORS® counsel their clients to consider this equation when pricing their home, keep in mind that some homes are not properly priced.

It’s important to educate yourself about the current market before approaching the purchase of a home. The market will always influence a property’s value, regardless of the state of a home, or its desirability. Here are the types of market conditions and how they may affect you:

1. Seller’s Market:

A seller’s market is considered a “hot” market. This type of market is created when demand is greater than supply that is, when the number of buyers exceeds the number of homes on the market. As a result, these homes usually sell very quickly, and there are often multiple offers. As a buyer, you need to consider that many homes will sell above the asking price; in other words, you may have less room to negotiate, and may encounter competing offers. Though most buyers want to get a home for the lowest price possible, reducing your offer could mean opening the door for another buyer instead.

2. Buyer’s Market:

A buyer’s market is a slower market. This type of market occurs when supply is greater than demand, the number of homes exceeding the number of buyers. Properties are more likely to stay on the market for a longer period of time. Fewer offers will come in, and with less frequency. Prices may even decline during this period. As a buyer, you will have more selection and flexibility in terms of negotiating toward a lower price. Even if your initial offered price is too low, the seller will be more likely to come back with a counter-offer, so you can begin the process of negotiation.

3. Balanced Market:

In a balanced market, supply equals demand, the number of homes on the market roughly equal to the number of buyers. When a market is balanced there aren’t any concrete rules guiding whether you should make an offer at the higher end of your range, or the lower end. Prices will be stable, and homes will sell within a reasonable period of time. You will have a decent number of homes to choose from, and may encounter some competition for offers on the home of your choice, or none at all.

Before you make an offer to purchase a home, establish whether the current market is a Buyer’s, Seller’s, or Balanced market. Also, evaluate the price similar properties have sold for in the area, and the length of time these properties spent on the market. Determine how the home you’re considering compares to these other sales. Is this one over-priced, under-priced, or a fair price? By establishing this information prior to making an offer, you will be in a position to negotiate the best price for the home and be prepared for any additional opportunities that may come your way.

Keep in mind, a realtor is trained to provide clients with this information about the market, helping you make the most informed decision possible. The right realtor will guide you through the ups and downs of the market and keep you up-to-date with the types of changes you might expect. These realtor resources and connections will prove to be invaluable as you navigate the real estate market.

The other main factors that affect market value are:

1. Location:

The proximity of the home to amenities, such as schools, parks, public transportation, and stores will affect its status on the market. Also, the quality of neighbourhood planning, and future plans for development and zoning will influence a home’s current market value, as well as the ways in which it might change.

2. Property:

The age, size, layout, style, and quality of construction of the building will all affect a property’s market value, as well as the size, shape, seclusion and landscaping of the yard.

3. Condition of the Home:

This includes the general condition of the home’s main systems, such as the furnace, central air, electrical system, etc., as well as the appearance and condition of the fixtures, the floor plan of the house, and its first appearances.

4. Comparable Properties:

Examine the selling and asking prices of similar homes in the neighbourhood. Ask your Realtor to prepare you a general market analysis of the neighbourhood you’re interested in, so you can determine a range of value for a particular property. A market analysis will provide you with a market overview and give you a glimpse at what other similar properties have been selling for in that area.

5. Market Conditions/ Economy:

The market value of a home is additionally affected by the number of homes currently on the market, the number of people looking to buy property, current mortgage rates, and the condition of the national and local economy.



I am the GUY that will make a difference!

I specialize in selling homes in the in the Okanagan Valley including Westbank, West Kelowna, Peachland with a focus on Rose Valley, Lakeview Heights, West Kelowna Estates and Shannon Lake.


Karen Guy, REALTOR®
Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Sunday, April 17, 2011

Karen Guy, REALTOR® ~ Buying a Home - What Expenses to Expect

Buying a Home: What Expenses to Expect


Budgeting for a new home can be tricky. Not only are there mortgage installments and the down payment to consider, there are a host of other sometimes unexpected expenses to add to the equation. The last thing you want is to be caught financially unprepared, blindsided by taxes and other hidden costs on closing day.


These expenses vary: some of them are one-time costs, while others will take the form of monthly or yearly installments. Some may not even apply to your particular case. But it’s best to educate yourself about all the possibilities, so you will be prepared for any situation, armed with the knowledge to budget accordingly for your move. Use the following list to determine which costs will apply to your situation prior to structuring your budget:

1.  Purchase offer + deposit (deposit forms part of the purchase price).

2. Inspection by certified building inspector.

3. Appraisal fee:

Your lending institution may request an appraisal of the property. The cost of this appraisal is your responsibility.

4. Survey fee:

If the home you’re purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey. The cost for this survey will be your responsibility and will range from $700 to $1000.

5. Mortgage application at your lending institution.

6. 12% HST:

This fee applies to newly built homes only.

7. Legal fees:

A lawyer should be involved in every real estate transaction to review all paperwork. Experience and rates offered by lawyers range quite a bit, so shop around before you hire.

8. Homeowner’s insurance:

Your home will serve as security against your loan for your financial institution. You will be required to buy insurance in an amount equal to or greater than the mortgage loan.

9. Land transfer (purchase) tax, or Property Purchase TAX (PPT):

This tax applies in any situation in which a property changes owners and can vary greatly. 1% on the first $200,000 and 2% on the balance (approx.).

10. Moving expenses.

11. Service charges:

Any utilities you arrange for at your new home, such as cable or telephone, may come with an installation fee.

12. Interest adjustments.

13. Renovation of new home:

In order to “make it their own,” many new homeowners like to paint or invest in other renovations prior to or upon moving in to their new home. If this is your plan, budget accordingly.

14. Maintenance fees:

If you are moving to a new condominium, you will likely be charged a monthly condo fee which covers the costs of common area maintenance.

For helpful tips, please contact me.

I am the GUY that will make a difference!

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty

C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Tuesday, March 29, 2011

Karen Guy, REALTOR® ~ Latest E-Connection Newsletter

Hi Everyone,


As the biggest financial transaction that most of us ever make, buying or selling real estate has more complexities than most people expect. Understanding thinking ahead for needed Community resources, legal aspects of the transaction and effective negotiating skills are just a few of the things that I can help with.

The SOLD signs are popping up ~ the only time the bottom of the market is realized is when it’s too late, and it’s already on the upswing.

It takes time, experience and market knowledge, not just a few weeks of looking at prices, to understand the overall implications of the marketplace and to execute a completed transaction.

Because it's my profession, and what I focus on daily, I can help you and your family or friends.

CLICK HERE to view my latest newsletter ~ Thanks for your continued support.

I am the GUY that will make a difference!

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Sunday, March 27, 2011

Karen Guy, REALTOR® ~ What friendship style do you use to build strong relationships?

The way we relate to people affects how we view and negotiate the world.

What friendship style do you use to build strong relationships?


Expressive Style


• You lose your temper, but never for long.

• Everyone wishes they had your energy.

• You talk with your hands.

Your knack for seeing life’s silly side turns tense situations right around.

Nurturing Style

• You are the friend others confide in most.

• You prefer heartfelt private thanks.

• You would rather chat by phone than email.

Confide in others too; be a rock with your friends,

but with a little less stress.

Analytical Style

• You choose your words carefully.

• Your best work is done alone.

• You are a perfectionist.

Your smarts serve you well but go with your gut.

Driver Style

• You skip the small stuff to get to the meaty stuff.

• You tend to be super punctual

• You excel at making important decisions - fast.

Take a break from the fast lane once in a while and relax.

I am the GUY that will make a difference!

Karen Guy, REALTOR® Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

Saturday, March 26, 2011

Karen Guy, REALTOR® ~ LET THERE BE LIGHT

Need more light and space in your home? You don’t need to install windows or tear down walls - just put up a mirror and double your brightness.

Light and cheery. Double the light in a room by hanging a mirror on a wall, across from a window. The rays of sunshine will reflect off the mirrors and brighten everyone’s mood.

Create a focal point. A large mirror can turn a lifeless wall into a stunning focal point. Make sure the style of the mirror blends well with other pieces in the room.

Widen a hallway. A mirror placed horizontally in a narrow hallway will add depth instantly. When hanging the mirror, make sure it is at a comfortable eye level.

Inventive fire. If you have an unused fireplace, cover it with a stunning mirror and you will turn a dark hole into a feature point of the room.

Think big. The bigger a mirror, the more light it will reflect. If you don’t have a large mirror, placing two smaller mirrors side by side will have the same effect.

Karen Guy, REALTOR®
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001


I am the GUY that will make a difference!

http://www.connectwithkaren.com/

Tuesday, March 22, 2011

Karen Guy, REALTOR® ~ Are You Sitting on the Fence?

Some potential buyers might be sitting on the fence waiting for home prices to hit bottom as they want to ensure that they are purchasing at the best possible price. There may actually be some room for prices to drop a little further in our area. But I would suggest that waiting is not the best financial decision for a buyer today.

Below I pose and respond to the following question -

Should a buyer be more concerned about the “PRICE” of the home or
should they really be more concerned about the overall “COST” of the home?

The cost of a house is made up of the price AND THE INTEREST RATE they will be paying on their mortgage financing.

PRICES

The average median residential price was $417,917 in the fourth quarter of 2010, down 3.5% from $432,833 in the fourth quarter of 2009 here in the Central Okanagan.

A buyer who delayed a purchase might be happy with the fact that prices have come down and think they have made a great decision but with interest rates on the rise, that decision could be questioned.

INTEREST RATES

Five year fixed interest rates have increased 35 basis points since the beginning of the fourth quarter of 2010.*

No one has a crystal ball but here are the latest interest rate predictions from the Big 6 Banks which could translate to a further one percent increase in mortgage interest rates by the end of this year.

The Big 6 Banks currently expect prime rate to climb 200+ basis points (bps)
in the next 24 months. They project 5-year bond yields rising over 125 bps.

So prices have declined slightly but interest rates have risen significantly in the last few months. So what does this mean to a buyer who is looking to purchase a home this year?

Let’s take a look at what this could mean to the buyer who decided not to buy during the last quarter of 2010 because they thought that the prices would drop further but are now considering purchasing a home sometime this year.

They are financing the same amount, but now it is costing them more.

DATE                     MTG AMT            RATE          MONTHLY PMT

OCTOBER 2010      $360,000           3.69%*          $1649.28
TODAY                    $360,000           4.04*             $1720.03
OCTOBER 2011      $360,000           5.04%            $1929.89

By sitting on the fence until now the buyer has lost:

• $70.75 a month, $849.00 a year, $4,245 in payments over the five year term
• Will pay an additional $6,089 in interest over the 5 year term

By sitting on the fence since October and waiting until later this year a buyer could potentially lose:

• $280.61 a month, $3,367.32 a year, $16,836.60 in payments over the five year term
• Will pay an additional $23,563.04 in interest over the 5 year term

Here’s the bottom line:

Even if home prices fall another 10% this year, the cost of a home will increase if interest rates go up by more than 1.00%. Perhaps buyers should not be so concerned about where prices are going but be more concerned about where their interest rate costs will be later on this year.

The important number to consider is the OVERALL COSTof the home and not just the purchase price.

Why not share this information with anyone that may still be sitting on the fence and can't decide whether they should purchase now. With our historically low interest rates this is a great time to buy for both investors and those looking to move up or buy their first home.

Compliments of:         April Dunn, Mortgage Broker
                                  Mortgage Alliance Homeline Mortgage
                                  250-826-3543
                                  http://www.aprildunn.com/

Please let me know if I can be of any assistance.


Karen Guy, REALTOR®

I am the GUY that will make a difference!

Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Monday, March 21, 2011

Karen Guy is a proud sponsor for the Ride2Survive June 18th 2011

Ride day is June 18th 2011

Our 7th Ride2Survive400km

13,000 feet of climbing, One day....Cycling to Beat Cancer

----------------------------------------------------

What is the Ride2Survive?
Simply, it is a one day 400km bicycle ride from Kelowna to Delta raises funds for Cancer Research! But,

•it is more than a bicycle ride
•it is more than a cancer fundraiser
•it is more than the most amazing ride you will ever do
•it is more than the best supported event you will ever do
Do you want to feel like you have been inspired, given back, made a difference?

...Then you need to join the Ride2Survive!

Watch this video:



I have sponsored the first pitstop for the last three years which is located at the Johnson Bentley Pool parking lot. It is an amazing experience and one that I will continue to support and particiate in.

For more information contact:

Karen Guy,
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Thursday, March 17, 2011

Karen Guy, REALTOR® ~ You`ve Sold Your House, Now for the Home Inspection

You have sold your home, and now all that remains is the Home Inspection to be completed.


There are a few things you as a homeowner can do in advance to facilitate this process and ensure that your home gets a proper and complete assessment of its condition:

• De-clutter storage under sinks to allow inspection of the plumbing in these areas

• Provide clear access to any and all hatches to the roof or attic spaces. (These are usually located in an upstairs hallway, or sometimes in the top of a closet or walk in closet or the garage)

• Provide clear access to hatches or doors to the crawlspace or cellar

• Clear the area immediately in front of any Electrical Distribution (Breaker) Panels or Sub Panels

• Clear the area directly in front of and around your furnace and hot water tank

• Clear the area around the Main Water Shut Off (Sometimes concealed from view under stairs or in finished basements)

• Make sure any burned out light bulbs have been replaced

While many home inspectors will deal with or work around a few small items, they should not be expected to move furniture and your personal effects to be able to complete their work, and doing so is not part of the scope of a home inspection.

It is important to remember, if an Inspector cannot access an important area of your home, the potential buyer will receive an incomplete report that will make note of this and may slow down, or otherwise impair the completion of your sale, particularly if they have to ask you to provide access later and re-schedule a further inspection visit before “signing off” on their conditions. This just delays the process for everyone, adds costs, and also adds yet another level of stress to an already stressful time.

The simple steps outlined above can eliminate this entirely and will certainly assist in making your sale progress smoothly.

I trust you will find this information of value, and encourage you to circulate it amongst your colleagues, and feel free to distribute the attachment to your clients as well.


Karen Guy, REALTOR®

I am the GUY that will make a difference!

Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Tuesday, March 1, 2011

Karen Guy, REALTOR® ~ Getting Better Gas Mileage & Saving Money

Sneaky Ways To Get Better Gas Mileage


Forbes - Jacqueline Mitchell

Motorists looking to save on a litre of gas needn't drive across province lines in search of cheaper prices at the pump.

The answer is right under the hood. That's because more frequent air filter changes can improve your vehicle's gas mileage by as much as 10%, the Car Care Council says. The filter keeps dirty particles from damaging the inside of your engine and helps it run more efficiently. The council, a consumer advocacy group that promotes vehicle maintenance, recommends checking the filter each time you change the oil every 3,000 miles (nearly 5,000 kilometres).

Other fuel-saving measures include keeping tires properly inflated, reducing your load and avoiding long idles.

These adjustments have never been more important. Last week, the nationwide average price for regular gas pushed toward $1.30 a litre, and prices are expected to rise, some say, to as much as $2.50 by summer.

"You can't control the price of gas, but you can control how much gas you burn by proper maintenance and how you drive," says Rich White, executive director of the Car Care Council. "Performing simple and inexpensive maintenance can save as much as $1,200 a year."

Top 10 Tips

We compiled 10 key fuel-saving tips and estimated fuel savings from the U.S. Environmental Protection Agency (EPA), the Car Care Council and the Federal Trade Commission (FTC).

But before motorists start calculating potential savings, all of the agencies we contacted cautioned that gas mileages are only estimates. The number of kilometres that you see per litre of gas will vary depending on such factors as the rate of speed driven and the amount of city driving versus highway driving. The latter requires fewer stops and starts.

One immediate step a driver can take is observing the speed limit. Aggressive drivers can save per litre if they ease up on the gas and brakes, according to the Car Care Council. You can also save by observing the speed limit and using cruise control during highway driving.

Using the manufacturer's recommended levels of octane gas and grade of oil also makes a difference. Luxury and high-performance cars usually require premium gas, which has a higher level of octane to prevent engine knocking or rattling in some vehicles. But regular gas is recommended for most vehicles; using a higher-octane fuel on these cars will provide little benefit, if any. However, using a higher grade of motor oil will cut into your fuel economy, according to the EPA, which publishes fuel-saving tips at http://www.fueleconomy.gov/, a consumer information Web site jointly maintained by the U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy and the EPA.

Watching your weight also fattens your wallet. Piling a lot of heavy items on the roof rack can create additional cargo space, particularly in small cars, but it will also decrease fuel economy by 5%, according to the EPA.

What's more, car owners should beware of businesses advertising gas-saving products that promise to improve fuel economy, some by as much as 20%. These include fuel additives that claim to improve fuel economy and ignition devices that attach to an existing ignition system or replace part of the original system. The FTC and EPA warn that such claims are false.

Bottom line: If a new car isn't in your immediate future, don't sweat. By making a few lifestyle changes, you can get some relief at the gas pump.

1 Drive Sensibly

Estimated Savings: 7 to 49 cents per gallon

Speeding, rapid acceleration and constant braking are all symptoms of aggressive driving that waste gas. Pay attention to the traffic flow to maintain a more constant speed. You can lower gas mileage by as much as 22% on the highway and 5% on city streets by driving sensibly.

2 Replace Dirty Air Filter

Estimated Savings: 15 to 32 cents per gallon

Replacing a clogged air filter can improve your vehicle's gas mileage by as much as 10%. The air filter keeps dirty particles from damaging the inside of your engine. A clean air filter serves a dual purpose: It saves gas and protects your engine.

3 Bypass High-Octane Gas

Estimated Savings: 15 to 35 cents per gallon

Regular octane fuel is recommended for most cars. Buying a high-octane gasoline most likely won't improve your car's performance but will add to your fuel cost.

4 Maintain The Speed Limit

Estimated Savings: 10 cents per gallon

Gas mileage usually decreases rapidly at speeds above 60 mph. Observing the speed limit and using cruise control during highway driving will conserve gas

5 Avoid Long Idles

Estimated Savings: Additional miles per gallon

Allowing your vehicle to run idle for longer than a minute is equivalent to throwing money out of the window. You are burning gas but getting zero miles per gallon. Shut off the car; it takes less gas to restart it than what is being used while sitting still.

6 Check Gas Cap

Estimated Waste: Gallons of gas each year

Gas caps that are damaged, loose or missing can cause gallons of gas to vaporize, thus sending you to the pump sooner than necessary.

7 Get a Plan

Estimated Waste: Gallons of gas each year

Trips to the grocery store, dry cleaners and shopping centers should be planned so you are not wasting time retracing your route. If you have multiple vehicles, drive the one that has the better mileage. Make a list of what you need so you don't forget something and have to make a return trip.

8 Use the Recommended Oil

Estimated Savings: 3 to 6 cents a gallon

You can improve your gas mileage by up to 2% when using the grade of oil recommended by the manufacturer.

9 Keep Tires Properly Inflated

Estimated Savings: Up to 10 cents per gallon

When tires aren't inflated properly, it's like driving with the parking brake on, and that can cost a mile or two per gallon. You can improve your gas mileage by around 3.3% by keeping your tires inflated to the proper pressure.

10 Drop the Weight

Estimated Savings: 3 to 6 cents per gallon

Avoid keeping unnecessary, heavy items in your vehicle. An extra 100 pounds could reduce your miles per gallon by up to 2%, based on the percentage of extra weight relative to the vehicle's total weight, which affects smaller cars more than larger ones. http://www.forbes.com/2008/04/22/cars-mpg-gas-forbeslife-cx_jm_0422cars.html


Karen Guy, REALTOR®

I am the GUY that will make a difference!

Coldwell Banker Horizon Realty C 250.878.3605 O 250.768.8001
http://www.connectwithkaren.com/

Thursday, February 24, 2011

Karen Guy REALTOR ~ West Kelowna ~ Technology Tip



Karen Guy, REALTOR®

I am the GUY that will make a difference!

Coldwell Banker Horizon Realty C 250.878.3605 O 250.768.8001
http://www.connectwithkaren.com/

Monday, February 14, 2011

Karen Guy, REALTOR® ~ Housing Market Continues Normalization

Vancouver, BC – February 14, 2011.

The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province climbed 7 per cent in January from December 2010, on a seasonally adjusted basis. Compared to January of last year, MLS® residential unit sales were down 10 per cent to 4,137 units. The average MLS® residential price rose 11.5 per cent to $548,183 in January compared to the same month last year.

"Consumer demand continues to normalize alongside overall economic conditions,” said Cameron Muir, BCREA Chief Economist. “However, the pace of growth in home sales experienced since last summer is likely to moderate in the coming months as tighter credit conditions and upward pressure on mortgage interest rates impacts affordability and purchasing power."

The inventory of homes for sale remained below 47,000 units for the third consecutive month in January, down 14 per cent from the spring of last year. “While demand and supply conditions province-wide exhibited balance last month, regional differences are pronounced,” added Muir. “Housing markets in the Lower Mainland/ South Coast exhibited stronger conditions than in the Kootenays and Okanagan, which remained in buyer’s market territory in January."


Karen Guy, REALTOR®

I am the GUY that will make a difference!

Coldwell Banker Horizon Realty C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Wednesday, February 9, 2011

Patience and perseverance are a must to weather out any storm...and try to have fun out there while persevering LOL. Going X-country skiing this afternoon - brrr it's going to be a cold one. http://amplify.com/u/apm5f

Thursday, February 3, 2011

Karen Guy, REALTOR® ~ Managing Your Credit Scores

Credit scoring 101

Don't worry, Credit Scoring 101 doesn't require any prerequisite courses, but you'll want to be ready to learn about a few tricky algorithms and number crunching.

History

The credit scoring system became prevalent during the 1960's as a way for lenders to quickly evaluate a potential borrower's creditworthiness. The system was found to accurately predict financial risk over time and grew to several different industries. Now credit scoring is used by lenders, insurers, landlords, employers, and utility companies to evaluate your credit behaviour.

Algebra

Thousands of different credit scoring formulas exist today for various evaluation purposes. Each unique credit scoring system is accurate and correct for its own application. The credit scores you can order online use an algorithm created for consumers that approximates these different formulas. Your online credit score may vary a bit from the score your lender uses, but they should be in the same range.

Chemistry

The basic credit scoring formula takes into account several factors from your credit profile. The impact of each element fluctuates based your own credit profile:

• Payment history - A good record of on-time payments will help boost your credit score.

• Outstanding debt - Balances above 50 percent of your credit limits will harm your credit. Aim for balances under 30 percent.

• Credit account history - An established credit history makes you a less risky borrower. Think twice before closing old accounts before a loan application.

• Recent inquiries - When a lender or business checks your credit, it causes a hard inquiry to your credit file. Apply for new credit in moderation.

• Types of credit - A healthy credit profile has a balanced mix of credit accounts and loans.

Economics

When you are preparing for a major purchase make sure you check your credit profile and credit score from TransUnion or Equifax. If you are looking to purchase a home, talk to your mortgage broker so that they can review your credit and let you know where you are at. Looking at your profile and score a few months before your loan application will help you get a complete picture of your credit health. Worried if your credit score makes the grade? If your credit score is above 650 you will probably qualify for a standard loan. Under 650, you may have trouble receiving new credit.

If your credit score is a little low, pay your bills on time, reduce your debt, remove inaccuracies and avoid new inquiries for a few months to give it a boost. Plus, don't forget that your credit score is not the only factor a lender may look at when they are evaluating your financial standing.

Karen Guy, REALTOR®

I am the GUY that will make a difference!

Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Sunday, January 23, 2011

what an absolute gorgeous day in the sunny #Okanagan...wow! Not as busy today at the Condo's in #West Kelowna, but I would bet everyone is taking advantage of this great weather. http://amplify.com/u/bnfra

Wednesday, January 19, 2011

Karen Guy ~ West Kelowna Realtor ~ New Mortgage Rules as of 18 March 2011

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.
“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”
“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:
  • Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
  • Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
  • Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.
Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.
The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

Information courtesy of the Department of Finance Canada Website.

If I can answer any more of your questions or concerns, please let me know.

Karen Guy, REALTOR®

I am the GUY that will make a difference!

Coldwell Banker Horizon Realty
C 250.878.3605O 250.768.8001

http://www.connectwithkaren.com/

Monday, January 17, 2011

Karen Guy - West Kelowna Realtor ~ New Mortgage Rules

OTTAWA — Finance Minister Jim Flaherty unveiled changes Monday morning to mortgage lending rules that would see Ottawa stop backing home loans greater than 30 years and make it more difficult for households to use their property to access financing.

The changes, as reported by the National Post on Sunday, emerged as worries escalate among Bay Street leaders and the Bank of Canada about the record levels of household indebtedness, and how conditions could deteriorate unless pre-emptive action was taken.

The key change announced is that mortgages with amortization periods longer than 30 years will no longer qualify for government-backed mortgage insurance, which is required for buyers with less than a 20% down payment on a home. The previous limit was 35 years.

Also, Mr. Flaherty lowered the maximum amount Canadians can borrow against the value of their homes, to 85% from 90%, on a refinancing; and removed federal government backing for home equity lines of credit, or so-called HELOCs, whose popularity soared in the past decade with growth double that of mortgage debt.

"Canada's well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries," Mr. Flaherty said at a media conference. "The prudent measures announced [Monday] build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future."

Executives at Bank of Montreal applauded the government's move.

“The actions announced are prudent, measured, responsible and timely,” said Frank Techar, president of personal and commercial banking at Bank of Montreal.

The changes will be implemented in stages, with adjustments on amortization and refinancing limits coming into force on March 18. Government backing on HELOCs will be removed as of April 18.

The government said exceptions would be allowed after the new measures come into force when needed to satisfy a home purchase or sale and financing agreement struck before the March and April in-force dates.

The minimum down payment, at 5%, will remain as is. Further, there are no plans to target condominium purchases by requiring monthly condo fees be added to the list of expenses that is measured against income to decide whether a buyer can afford a mortgage.

Analysts at Scotia Capital said in a morning note the changes had been anticipated for some time. “We remain of our long-held belief that Canada is tapped out on housing and household finance variables that are all at cycle tops, in contrast to the U.S. that has already moved well off cycle tops and may be creating some pent-up demand,” said economists Derek Holt and Gorica Djeric.

The changes to the country’s mortgage rules -- the second in as many years -- emerge amid rising concern about the record levels of household debt, which measured as a ratio of money owed to disposable income nears a startling 150% as of the third quarter of last year. That surpasses the level of debt held by American households, whose appetite for borrowing helped stoke the financial crisis of a few years ago.

The Bank of Canada recently warned debt levels are growing faster than income, and the risk posed by consumer indebtedness to the domestic economy would continue to escalate without a “significant change” in how consumers borrow and banks lend.

Bank of Canada governor Mark Carney said policymakers have a “responsibility” to look at the benefits of pre-emptive action. Joining the chorus have been chief executives at the big banks, most notably Ed Clark at Toronto-Dominion Bank, in publicly advocating for tougher mortgage standards.

Last Friday, Prime Minister Stephen Harper acknowledged his government was considering changes to the rules governing mortgages.

In February of 2010, Mr. Flaherty moved to toughen up the mortgage rules amid worries that Canada was in the midst of a housing market bubble. The reforms, since introduced, compelled borrowers to meet standards for a five-year fixed-rate mortgage, even if the buyer wanted a shorter-term, variable rate loan; reduced the amount Canadian can borrow against their home, to 90% of the property value from 95%; and require purchasers of rental properties to issue a 20% down payment as opposed to 5%. The moves played a role, observers say, in slowing down real estate activity.

The Scotia Capital analysts suggested government regulation was the way to go in terms of curbing household appetite for credit as opposed to the Bank of Canada raising interest rates, which they said would be “imprudent” at this time.

The central bank issues its latest rate statement on Tuesday and it is expected to hold its benchmark rate at its present 1% level as signs indicate the economy may be benefiting from renewed business and consumer confidence in the United States.

Stewart Hall, economist at HSBC Securities Canada, said the extraordinarily low-rate environment “provides all the incentive to consumers to borrow and spend and none of the incentive to save. You can try to [regulate] that away but that is apt to be fraught with significant frustration.”


Karen Guy, REALTOR®

I am the GUY that will make a difference!

Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001

http://www.connectwithkaren.com/

Thursday, January 13, 2011

West Kelowna Realtor Karen Guy ~ BCREA Latest Stats

Record Home Prices for 2010
Vancouver, BC – January 13, 2011. The British Columbia Real Estate Association (BCREA) reports that Multiple Listing Service® (MLS®) residential sales in the province declined 12 per cent to 74,640 units in 2010. The annual average MLS® residential price rose 8.5 per cent to a record $505,178 in 2010.

"Tighter credit conditions and expended pent-up demand curbed home sales during the first half of 2010,” said Cameron Muir, BCREA Chief Economist. “However, low mortgage interest rates and improved economic conditions buoyed home sales in the latter half of the year.” MLS® residential unit sales declined 40 per cent January through July before climbing 43 per cent by the end of the year, on a seasonally adjusted basis.
"The inventory of homes for sale peaked at 53,375 units in May before declining 14 per cent to 46,000 units by December,” added Muir. “The combination of fewer active listings and increased consumer demand has improved market conditions in many areas."
MLS® residential sales declined 25 per cent to 4,258 units in December from a near record level of 5,703 units in December 2009. After a 15 per cent increase in unit sales between October and November, a further 1 per cent increase was recorded in December on a seasonally adjusted basis. The average MLS® residential sales price was a record $523,990 in December, up 6 per cent from December 2009.

Karen Guy, REALTOR®

I am the GUY that will make a difference!
Coldwell Banker Horizon Realty
C 250.878.3605 O 250.768.8001
http://www.connectwithkaren.com/

Kelowna Real Estate Agent West Kelowna Karen Guy Realtor