Canadian home sales rise again in May 2019
Ottawa, On, June 14, 2019- Statistics released today by The Canadian Real Estate Association ( CREA) show national home sales climbed further in May 2019.
The largest property buying demographic today is millennials. The younger members of this tribe may still favour renting, but once they hit their 30's and begin to settle down they want their version of a great house.
What they want is move-in ready. Why? Pressing student debt is already a worry. They scrape together as much as possible for the down payment and simply don't have extra cashflow to invest in "fixing up" things. The other factor to consider is this group of people does not want to be DIY weekends warriors! Also, many don't have the skills to do the work and they are not interested in learning how to do it.
If you're a new real estate investor, residential rental properties are the best vehicles to get started. You can start with single family houses, duplexes and triplexes. If you have a bigger investment appetite, you can look for small mutifamily buildings, ranging anywhere between 5 to 50 units.
PRO TIP: When investing in residential properties, try to purchase Class A properties only. These properties are newly built (less than 15 years old), demand higher rent, and attract high-income tenants.
One of the most common HOME BUYING FAQs comes from buyers who can't get a mortgage at the present time. They're often confused as to why! Well, there are actually some very common reasons why potential home buyers can't get a mortgage.
1. Low Credit Score- One of the major factors of getting approved for a mortgage is a buyers credit score.The TYPE OF MORTGAGE PRODUCT and the mortgage lenders guidlines will determine what a buyers credit score needs to be.
2. Lack Of Employment History- One of the most COMMON MORTGAGE MYTHS is that buyers always need to have a 2 year work history in order to get a mortgage. This isn't always the case as there are exceptions that some lenders can make.
3. Not Enough Money Saved- There are a few mortgage products available that allow a buyer the ability to BUY A HOME WITH NO MONEY DOWN or very little. The truth is though that there are more mortgage products available for buyers who have some money available for a down payment.
4. Too Much Debt- If you're unable to get a mortgage because you have too much debt, the great news is that this is one of the easier things to fix. It's always recommended that as you're PREPARING TO GET A HOME LOAN you don't take on any additional debt if possible.
Below are some of the most important tips to help you get a mortgage in the future.
1. Continually monitor and improve your credit score.
2. Save money for down payment and closing expenses.
3. Don't incur additional debts, if possible.
4. Gather important paperwork you'll need to get a mortgage such as pay stubs and bank statements.
5. Stay positive and understand that just because you can't get a mortgage now, doesn't mean you'll never be able to.
The Milennials grew up with fast changing technology. In 1990 we had only about 15% of the households with a computer, compared to 79% in 2010 to about 83% today.
But don't forget about the smart phone. The smart home has put the internet in almost everyones's hands with some not opting to have a home computer because they can get what they want with a smart phone. The Millennials are the first generation to grow up in the digital age.
Technological advances alone have shaped how all of today's home buyers search for homes.
During the year there were 3,271 residential sales reported in all geographic areas, down 4% from 3,408 recorded in 2016. This is the fewest number of sales in the past ten-year period and the lowest since 2006 when 2,943 sales were reported. Sales in the city came in at 2,677, a decrease of 5% from 2016's 2,814.
The number of active listings for sale on the market , particularly in the city, was consistently higher throughout the year when compared to recent years. This was due to fewer sales, it is taking longer for homes to sell and a higher number of new listings coming on the market during the year.
Hope you all have a great 2018. The housing market is still considered to be a buyers market in Regina and surrounding area's. Real Estate is still moving but being a seller you cannot be to aggressive with your asking price. The buyers have so much to chose from and if your home is over priced they will go on to the next home. Pricing your property is key in a market that we are in. If your considering selling? contact me for your free market evaluation. Regards, Domenico Palamara