Regina Real Estate Week In Review Feb 16 - 22, 2015
For the week of February 16 - February 22, 2015 :
Listings activity slowed down sharply last week with the number of new listings dropping my about 35% from the previous week, however the number of firm sales stayed on the same course compared to the week before. Before we get into the market for the past week let's start off with a the mortgage market courtesy of my partner mortgage broker Colin Hildred. This week he has written a great article about a common home buyer question - "What Is Mortgage Default Insurance?"
I often hear my clients say to me “I don’t need mortgage insurance, I have insurance through work!”, they of course are referring to “life insurance”. Mortgage Default Insurance has nothing to do with life insurance, in fact this insurance is purely for the lender, and provides little benefit to the home owner. Mortgage Default Insurance, is exactly what the name suggests, it protects the lender in the case that the client fails to continue to pay their mortgage, otherwise known as defaulting on their mortgage. All mortgages registered in Canada are backed by mortgage default insurance, through one of the three insurance companies:
1. CMHC – Government owned/operated also the most well-known
2. Genworth – Privately Owned
3. Canada Guaranty – Privately Owned
“Why do I have to pay for this insurance if it only benefits the lender?”, another question that I am asked. The short answer is, you don’t! That’s right I said you don’t have to pay for this insurance, but here is the catch….the only way to avoid paying for the insurance premium is to put 20% or more as a down payment when you purchase your home. By putting 20% or greater down on the purchase of your home, you force the lender to pay for the insurance premium. This is of course easier to do if you are selling a home with equity, compared to having to save up the 20% for your first home purchase. So how much will the insurance premium cost? Well let’s look at the different premium costs based on a $300,000 purchase:
1. 5% down payment (15000) CMHC Fee based on 5% down payment is 3.15% or $8977.50
2. 10% down payment (30000) CMHC Fee based on 10% down payment is 2.40% or $6480
3. 15% down payment (45000) CMHC Fee based on 15% down payment is 1.80% or $4590
Here is the good news, you don’t have to pay this premium up front it is added to your total mortgage.
You can contact Colin directly by clicking on the Mortgage pre-approval link under my Buyer's tab for futher information or to get your pre-approval application started.
Now let's move onto this weeks activity.
Market activity this past week :
New Listings :
Single family homes : 61
Total active single family : 819
Lowest active list price : $27,000
Highest active list price : $1,500,000
Average Asking Price : $356,116
Average Days On Market : 63
Condos : 25
Total active condos : 342
Lowest active list price : $114,900
Highest active list price : $1,050,000
Average Asking Price : $301,181
Average Days On Market : 63
We had 35 firm "Single Family" sales last week, with the average seller asking $326,870 and accepting an average sell price of $315,563 or 96.5% (List To Sell Price). They took an average of 54 days to sell. The low sale was $130,000 and the high sale was $665,000. The number of firm sales are down by 4 from last week however the average sell price is up $10,789 after falling $50,322 over the 2 weeks prior.
We had only 1 firm Condo sale last week with the seller asking $269,900 and accepting a sell price of $262,000 or 97.0% (List To Sell Price.) This unit took 55 days to sell which is a slight drop from the 60 days last week.
Cancelled, Withdrawn or Expired Listings :
Single Family : 20 (down 11 from 31 last week)
Condos : 5 (down 2 from last week)
Market Summary :
The trend seems to keep continuing in our market week over week. So far this year we have a fairly consistent amount of Single Family sales being reported each week and selling prices holding fairly consistent (over the first 7 weeks of this year.) However, condo sales continue to be "slugish" and more concerning with only 1 sale being reported last week. I can certaintely sympathize with a growing number of frusrated Condo owners who are patiently waiting for their unit to sell so they can make their next move. With the average asking price of condo's dropping slightly last week (at nearly $2,000) it doesnt seem as very many sellers are willing to continue to re-adjust their position in the market place to get a competitive edge over neighbouring units. I anticipate as the spring market heats up we will continue to see more price adjustment in the condo market in order for people to start moving their units.
Enjoy the last few weeks of winter and spring is just around the corner!