Edmonton Realty Report

Letter From Edmonton Public Schools Warns of Budget Cuts

Budget cuts loom for Edmonton’s public schools.  According to a letter from the school board that was received by all students February 12, the recently issued provincial budget has no provisions for teacher salary hikes.

Educational institutions from elementary schools to high school were spared from the budget ax, but while $6.1 billion in annual funding was retained, teacher pay raises were not part of the equation.  The Edmonton school board claims it cannot balance the budget without more money.  Reductions in staff and services may be inevitable.  

The letter was issued only days after Dave Hancock, provincial education minister, encouraged school boards to delve into reserve funds or even go into deficit mode to prevent budget cuts.  Also, the budget was formed before an arbitrator ruled for higher teacher pay raises this year.  Hancock has said he will try to go to bat to obtain additional funding for salary increases.  As with other workers in the public sector, teachers have been asked to consider salary freezes to avert layoffs.  

Don Fleming, chairman of Edmonton’s board of education, said that his organization is facing a $30 million decrease for 2010.  He denied any intentions of inciting parent-versus-government contention with the letter, saying that parental input is always sought, regardless of budget situations.

McKernan Elementary School parent Dave Bennett read the letter brought home by his two children.  He believes that the letter indicates even more woes for an already plagued system.  He said that McKernan has already been hit with problems in recent years. 

Edmonton Realty Report

Finance Minister Jim Flaherty Tightens Mortgage Lending Rules

Recent speculation on the possibility of a housing bubble in Canada has resulted in Jim Flaherty, the country’s finance minister, to change real estate mortgage rules, expected to go into effect on April 19th.  It is possible some financial institutions will implement them before that date.

Changes include tougher credit standards, which will most likely have the largest effect on buyers.  Instead of being able to qualify for the current three year term, three percent fixed rate loan, buyers will have to demonstrate they can make payments on a five percent fixed rate mortgage for those three years, even if they end up getting a loan with lower monthly payments.

Homeowners looking to refinance their properties will also face tighter restrictions.  Rather than the current policy of lending up to 95 percent of the home’s value, that percentage will drop to 90 percent.

Investors buying second homes or rental property will have to come up with a 20 percent down payment to qualify for a mortgage that is insured by the government.

Mr. Flaherty made these changes, stating that he was trying to stabilize the market and ward off that housing bubble.  Most consumers will still be able to negotiate a mortgage, but the amount they qualify for may be smaller than before the new rules.  All mortgages that are backed by Canada Mortgage and Housing Corporation are governed by these new rules.

Edmonton Realty Report

2010 Considered a Good Year for Investing as Economy Continues to Rebound

Mark Jackson believes 2010 will be a good year for investing, even though January was not particularly promising.  Part of the Natcan Investment Management team, Jackson is head of a Canadian growth equity fund.  He sees nothing in our financial future that will send investments back to the frightful lows of March 2009.

A 15 to 20 percent correction is a normal fluctuation in the market and can be weathered without serious effect.  If one invests looking at things in the long term, it is easier to see a more positive overall picture.  Jackson sees 2010 as a profitable recovery year, still sporting low interest rats, little inflation, more jobs coming on the market, more economic growth and a healthy rise in housing prices.

The economic recovery in the United States is happening much slower than in Canada.  Currently imports to the U.S. are down which is affecting our bottom line.  But as our neighbours to the south start to bounce back and gain confidence in their financial status, they will start spending money again.  Jackson predicts that spending from the U.S. will give Canada a 2.5 to 3 percent increase in our economy during the latter part of 2010.

Housing issues in Canada are certainly under better control than in the U.S. Our stricter lending laws prevented Canada from experiencing the mass foreclosures seen in the States. There might be an issue of a price bubble in real estate developing in Canada, but for now Jackson sees nothing that shakes his optimistic outlook.

Jackson also believes that inflation rates will remain low throughout 2010 and into 2011. Low inflation will in turn keep interest rates low, encouraging spending and keeping the housing market affordable for more people.

If you do have money available to invest, the suggestion is to put it into steel, copper, zinc, auto parts and lumber.  Gold prices will fluctuate considerably, and end up anywhere between $800 and $1,200 USD per ounce.   Oil is expected to go for $65 to $80 USD per barrel.  Just remember to invest for the long run and not to panic when there is a temporary bump in the market.

Edmonton Realty Report

For Sale Listings Up in January for Residential Real Estate Market

More real estate owners are feeling confident enough in the economy and in real estate trends to list their homes on the market.  There were twice as many listings in the month of January (2,199) than in December of 2009 (1,118).  Property values are up, interest rates are still low and this can only mean good things for those people in the market to purchase a new home.

January sales were slower than December of 2009, but now with the increased inventory, numbers for February should increase.  Even with the lower number of sales we are still ahead of last January’s sales by 21 percent.

Members of the Realtors Association of Edmonton were concerned that a lack of available housing inventory would artificially inflate prices and give buyers the advantage.  With the new listings, buyers and sellers are on a much more even playing field.

January single family home prices remained stable at $367,747 per unit compared to $366,761 as the average price in December. Condo prices decreased by 2 percent to a per unit average price of $239,006 and duplexes and row houses went up slightly to $300,563 per unit.

The new listings bring the total properties available through the MLS at 4,864.  That figure just broke 4,000 in December.  Average number of days for a home to be on the market was 57.

Edmonton Realty Report

Slumlord Charged for Health Code Violations

Last week, closing arguments wrapped up in a case against an Edmonton slumlord, who admits that he failed to fix the crumbling roof of a house he rented to tenants.  He says he didn't do the work because he planned to sell the property so it would be destroyed..

The lawyer for Giovanni Canonaco says that when ever repairs were made to the home, the tenants would damage it repeatedly.  The lawyer claimed that his client fixed what was possible, but when tenants continued to break the repairs, it became uneconomical to keep fixing the problems.

The city recently charged Giovanni Canonaco with 31 counts of violating the Public Health Act after inspections of the home in Jan. 2009 exposed miserable living conditions.  Windows were missing, smoke detectors were broken, and the fire escape was not functional.

Inspectors also cited the fact that the basement was overloaded with flammable items.  Gas pipes emptied into a back room, and the sinks were filthy.

The tenants were vulnerable, poor, inner-city residents who had little help.  Canonaco would bully the tenants to leave the premises when he sold the property in 2009, so he did such things as take the door off of a suite until the tenant left and changed the locks on another tenant.  Giovanni Canonaco is a scumbag, who takes advantage of the weak said one court prosecutor.

Edmonton Realty Report

Steady and Stable Describe 2010’s Real Estate Scene

The Realtor Association of Edmonton’s president, Larry Westergard sees 2010 having a steady and stable real estate year that will enjoy moderate growth in both sales and prices. The prediction is for home sales to top 21,000 by the end of the year.  This would be more than a 10 percent increase over 2009’s 19,000 residential units sold.

The single family home market is expected to lead the way.  At the moment there is a bit of a glut in the condo market caused by new units being built so that corner of the industry will take a bit longer to show substantial increases.

 Condo prices are expected to stay at or near their current $244,000 average price. Single family homes are expected to increase in price by as much as five percent. At the end of 2009 the average price for a single family home was $367,000.  That is expected to increase to about $385,000.

Interest rates are expected to hold steady for the first part of 2010.  By the end of summer, it is predicted they will rise one or two percent.

One thing that could alter this scenario is the availability of housing listings.  Currently there are 4,037 homes on the MLS listing. The real estate industry prefers to see that number somewhere around 6,000.  If the inventory numbers don’t increase, it is possible home prices will rise more than expected and rather than the even playing field enjoyed now, it will become a sellers market.  Even at that, no real estate boom is expected.

Edmonton Realty Report

New Home Construction Plays Big Role in Real Estate Market Recovery

Canada’s financial recovery is being led by its rebounding real estate market. After a dismal start to 2009, the implementation of lower interest rates combined with lower home prices turned things around quite nicely.

New home construction, with housing permits increasing for nine straight months, is a big factor in that turn around. December was particularly healthy with an increase of 5.9 percent in housing starts over November: 174,500 units compared to a commendable 164,800. November’s numbers also exceeded the 160,000 units predicted by economists.

Canada’s housing market has proven to be leader when compared to the rate of recovery in other world markets being tracked by Scotiabank in their Global Real Estate Trends report.

Although housing prices are rising, Adrienne Warren, an economist for Scotiabank is advising the nation not to panic. As the economy continues to improve, demand for housing will continue to be strong, particularly in the spring before interest rates are expected to rise. Later in 2010 the market is expected to cool at least slightly because of these higher rates.

The Bank of Canada is also keeping an eye on household mortgage debt to make sure that no housing bubble sneaks up on the industry. So far they have seen no indicators of such inflation, but they are remaining vigilant.

Edmonton Realty Report

Alberta Government Commits to New Pipeline

The Alberta government took the first step toward possibly creating a carbon capture pipeline inside of the province.  The government of Alberta issued a letter of intent stating that it will commit $495 million over the next fifteen years to help Enhance Energy construct a 240 kilometer carbon dioxide pipeline that will be able to recycle the carbon emissions from industrial activity within the province.

The planned pipeline is set to run from the industrial heartland northeast of Fort Saskatchewan to a joint oil recovery site 40 kilometres east of Lacombe, run by Fairborne Energy and Enhance Energy.

Now that the government has committed funds, once the cash is in place, construction on the project is expected to start in 2011, and the government hopes and plans that the pipeline will be fully functional by the end of 2012.

President of Enhance Energy, Susan Cole, says that the new pipeline will increase the development of the vast oil reserves by giving the area a solution to the threat of carbon emissions and global warming.

When the project is complete, it will be able to store over fourteen million tonnes of CO2 annually.

Edmonton Realty Report

New Plans for Edmonton’s Future

Edmonton’s city council recently debated the newly proposed Municipal Development Plan.  Scott McKeen, Journal columnist, scolded the council for its approach to planning.  He claims that the way the city council plans projects promotes the development of urban sprawl. 

McKeen elaborated on the evils that suburban sprawl creates.  The poorly planned projects lead to the sterility of landscape in suburban communities, the loss of valuable natural land, traffic, and increased energy consumption. 

The Mayor does not agree, and he believes that many people who cannot afford pre-owned homes in the city want their own house with a garden and a yard.  He says that the new developments are vital to keeping the city’s quality of living above average.

It seems that with the city’s plan of suburban growth, through more building projects and denser areas, the only "smart" growth lies in the city’s expansion of the LRT.  Some people even mock the government’s intellect by claiming that the task of planning a smart city within the confines of the 21st century is well beyond the grasp and capabilities of our current society and system of government.
 

Edmonton Realty Report

Preservation Agencies Look to Save Wilderness Land

Alberta Fish and Game Association has teamed up with several other conservation agencies, including Ducks Unlimited Canada, Alberta Conservation Association, and Nature Conservancy of Canada, in an effort to purchase one of the largest working ranches in Canada and turn the land into a wilderness reserve.

They want to preserve 1,500 acres of ranch land that is located in eastern Strathcona County’s Cooking Lake Moraine Natural Area. The cost of the project will exceed $12 million, but the agencies believe that working together will acheive the goal to buy the land before developers are able to do so.

The land has been divided into 13 parcels, which are each 136 acres of wilderness.  So far, four of the parcels have been claimed by the seven preservation agencies that are working together to buy up the 1,500 acres. 

Brad Fenson, habitat development co-ordinator, believes that this is an amazing opportunity that will materalize into commercial developments is the land falls into the wrong hands.  The agencies included in the preservation project know that rural development of the land will lead to loss of unique wilderness.  They claim that a lake on the property is used by rare avian species and migratory birds.

The good news is that the Golden family is working with the conservation agencies to complete the sale of the property by the middle of 2010.  When the sale is complete, a plan will be created to preserve the land and restore it back to a natural habitat that can be used by various species.  Everyone involved in the project hopes the rest of the country will take notice of the mutual efforts to preserve the lane for the greater good of mankind.

Edmonton Realty Report

New Life Shown By Canadian Office Market

Though the demand for business office space is still relatively low throughout most Canadian office markets, Cushman & Wakefield’s release of national office results for the third quarter seem to indicate that there is some gathering momentum in the improvement of business fundamentals. Most of this is owing to the fact that many companies have been effective in getting rid of unnecessary office space and are now making other decisions on occupancy.

It came as a surprise to see Canadian office space in the third quarter adopt a positive trend, especially after two quarters where the negative trend resulted in 2.4 million square feet per quarter of absorption. Absorption is a term used to signify the change in the amount of occupied space over a set amount of time, and is a key barometer that indicates strength of demand.

The largest absorption seen in any Canadian city occurred in Winnipeg, which – due to the completion and occupancy of the award-winning 23-story Manitoba Hydro Place on Portage Avenue – saw absorption of almost 800,000 square feet.

Joining Winnipeg with positive absorption in the third quarter were Ottawa, Toronto, Halifax, and Saint John. Vancouver’s central area experienced only the slightest of negative absorption – the total amount of sublet space fell from 760,000 to 639,000 square feet in a single quarter. Unfortunately, Vancouver’s suburb areas did not share in the city’s fortunes due to the large numbers of tenants who closed their doors or reduced their size as a result of the downturn in the economy.

Calgary suffered from a continuing weakness in natural gas prices occurring within a strong office space development cycle, with absorption of negative 690,000 square feet. Most of the loss was in the central markets of Calgary, which saw vacancy rates in excess of 10 percent. As it continues to construct another 5.5 million square feet of new office space, the city’s vacancy rates will no doubt continue to climb – though rising energy prices would certainly affect demand for space.

Edmonton has experienced stronger demand than Calgary but has still experienced absorption of 185,000 square feet in the central area – still, it has managed to maintain a vacancy rate of 5 percent.

The city of Toronto has seen positive absorption amounting to more than 350,000 square feet, a major change from the previous two quarters that saw an average of more than 3 quarter of a million square feet each quarter. The area around downtown Toronto has seen a major cycle of development that is expected to result in the addition of four and a half million square feet of new office space over the next two years.

Positive developments include the opening of the RBC and Bay Adelaide Centers, with 1.25 million and 1.16 million square feet, respectively. Together, the towers have a prelease rate of nearly 75%, and 400,000 square feet have already been occupied.

In Montreal, weak demand in the city’s central area for three consecutive quarters resulted in a negative absorption rate of 270,000 square feet. Despite those harsh statistics, vacancy rates remain at a consistent 8.1 %, partly due to the lack of plans for new construction. The suburbs have fared slightly better with a positive absorption of 24,000 square feet.

The central part of Ottawa has one of the most manageable vacancy rates in the country – at a little over 4%, and absorption is anticipated to remain in positive territory a result of government activity. The announcement of new head offices for Export Development Canada in the city’s downtown district occurred in the third quarter. The building is an 18 story construct of more than a half million square feet, and is the largest new office development in the last 25 years.

Saint John, St. John’s, and Halifax all saw positive absorption during the last quarter, while Moncton and Fredericton experienced negative absorption rates. St. John’s vacancy rate remains the tightest in the country at an impressive 1.6%.

Meanwhile, vacancy across all Canadian markets rose from 7.6% one quarter ago to a new rate of 8.2%, with much of that increase coming in the central markets of the country. The addition of about three and a half million square feet of new office space inventory has not helped.

There was still some improvement in leasing activity for a few markets, even with the soft demand. There has also been an increase in the pace of consolidations by tenants looking to reduce their costs and maintain their capital, which of course tends to reduce the amount of occupied space.
 

Edmonton Realty Report

Why the Housing Market in Canada Didn’t Crash

It may be a great idea to think that the Canadian and U.S markets are similar. This however is not the case, in fact the two are not even close to being the same.  Ask any real estate expert about this and they will tell you that the two are nowhere close to being the same. The rebound lasted lees time and started later in Canada than it did in the U.S. This fact alone has seperated the two as not even being close to the same.

Experts say that the fact that Canada has much more strict lending practices than the U.S does is what led to the market not crashing as bad as it did in the states.

Here are ways the markets have differed:

Duration of slowdown

The market in Canada suffered it’s slump in late 2008 and it did not last as long because many people lowered the asking price or just simply removed their property from the market. This in turn led to the market in Canada not to be as affected by the recession as it was in the United States.

Delinquency rates

Canadian banks are not experiencing the kind of delinquency rates that the United States is currently experiencing. Lenders in Canada were just not as eager to lend to anyone that happened to walk through the door. Meanwhile in the United States banks were lending to anyone that was able to sign their name to a piece of paper.

Consumer spending

When the markets are down consumers are less eager to spend in the retail sector. This had a drastic effect on prices in the United States. In Canada consumer spending skyrocketed due to the fact that people in Canada were more confident about the markets in Canada.

These are a few of the reasons why the recession was not as hard of an impact in Canada as it has been in the United States. Markets in Canada will tend to increase as time goes by while the United States are just now coming out of the effects of the recent recession.

Edmonton Realty Report

Buying U.S. Real Estate? Proceed With Caution

In 2007, Canadian currency achieved parity with the American dollar, something that had not occurred since the 1970s. Many Canadians celebrated by purchasing real estate in the United States. Now that the “loonie” is closing at rates such as 96.3 cents on the U.S. dollar, Philip McKernan advises that people should exert prudence with regard to impulsive buying.

McKernan is co-author of a book offering advice to Canadians on buying U.S. residential real estate. He notes that a strong Canadian dollar is a motivation for the purchase of U.S. real estate, but it should not be the only incentive. He comments that people who purchased U.S. properties at the height of the real estate market may have been burned by the slump in housing prices.

Michael MacKenzie has another opinion. As president of the Canadian Snowbirds Association, he contends that significant bargains are available in U.S. real estate, many of them in Florida. With an abundance of properties listed for half of their 2007 asking prices, MacKenzie believes there is an extraordinary buying opportunity, especially for those with plenty of cash. MacKenzie cautions buyers to evaluate whether they will rent their homes or live in them, and conduct buying research accordingly.
 

Edmonton Realty Report

Morgage Fraud in Canada Still Exists, But on the Decline

Mortgage fraud still exists in Canada, though it is less rampant than earlier in the decade. Consumers are more aware of the problem and there have been changes in regulations that have made the practice more difficult to engage in. Ontario has the biggest problem with mortgage fraud. This type of fraud also exists in British Columbia, but on a smaller scale.

Mortgage fraud in Canada tends to target the more expensive properties and is more prevalent in hot real estate markets. Popular targets are those that have no mortgages or that are rental units. Vacant homes are also vulnerable to the threat. Title insurance is an option many homeowners are signing up for to protect their holdings but even this does not completely erase the threat. The number of people and the amount of legal paperwork involved in a real estate transaction provide many opportunities for corruption.

The temptation to commit mortgage fraud is amplified by tough economic times. Though in Canada the number of cases has decreased, the reverse is true in the United States where the FBI reported an increase of 1,000 cases pending as of July 31st of this year over the same period in July of 2008.

Edmonton Realty Report

In Spite of Slight Drop, September Home Sales Rank Among Top Three

If not for a modest shortfall in Edmonton’s September home sales, the region would have registered a four-month increase in volume versus last year’s sales. According to Realtors Association of Edmonton (RAE) data, September residential sales declined 1.5 percent versus year-ago. September saw 1,704 home sales, in comparison to the 1,729 sold in September of last year.

Despite this slight drop, area realtors are enthusiastic, as September 2009 sales rank as the third-highest in years. September’s average single-family dwelling sale price was $371,947. The average sale price of a condominium was $245,546. This accounts for a gain of 1.4 percent versus August prices in both categories. Versus September 2008, the average price of a single-family home grew 2.7 percent. Condo prices versus last September decreased at the rate of 2.7 percent.

Charlie Ponde, RAE president, noted that low mortgage rates and government-supplied renovation incentives are driving sales, particularly among those buying their first home. He said that although first-quarter 2009 sales were down by more than 21 percent versus year-ago, volume for the first six months of this year actually rose by almost two percent.

September data show a 66 percent sales-to-listing ratio for 2,564 homes. This compares to 3,100 residences with a 55 percent sales-to-listing ratio in September 2008.
 

Edmonton Realty Report

Concerns among Canada’s commercial real estate investors

Even in light of the recent downturn in the real estate market, investors remain confident about the prospects for commercial real estate in Ottawa and Vancouver. However, there are growing concerns about the oversupply in available leasing space in Calgary commercial real estate market. Results from a comprehensive survey of 30 commercial real estate investors from across Canada were recently released. The survey results indicate that the financial stability of leasing tenants and increasingly higher rates of vacancy are two of the top concerns among commercial property investors in Canada.

The survey results further showed that as many as 92 per cent of the 2009 survey’s respondents listed the financial credit rating of their tenants as one of the top factors they consider when making decisions about leasing. As few as 33 per cent of the commercial real estate respondents in a similar survey from 2007 rated this concern as highly.

Edmonton Realty Report

Edmonton Faces Hiring Crisis

During the past 3 ½ years, Edmonton has hired so many civic service workers that their growth has increased that department by 20%. This excess hiring is twice the rate of Edmonton’s population increase.

Scott Hennig of the Canadian Taxpayers Federation said, “If you want to know why your property taxes have been going up in leaps and bounds over the last three or four years, here’s probably the number-one culprit.” In the past three years, property taxes have increased by 20% and that includes a 7.3% increase this year. Taking the other side, Amarjeet Sohi said the hirings give the citizens services they want, including bus service and snow removal.

Kim Krushell took a middle ground. She said, “City Council made it very clear during the last budget process that we need to put the lid on new hirings, and that’s what we’re doing.” Edmonton showed its first deficit since 2002 last year--$23 million. This year looked even bleaker, with the city predicting a loss of $35 million. But that has changed with expected savings; the city now expects a $3.6 million surplus.
 

Edmonton Realty Report

Toronto New Housing Starts Down - A Look At The Market Out East

Toronto home and condo buyers eschewed new builds this summer, causing both new home sales and new housing starts in July to fall by 17.8% compared with June. This is in contrast to sales of existing homes, which rose during the same time period. New housing starts for the first seven months of the year fell 41.8% compared to the comparable period last year. Statistics for the rest of Ontario also showed a slowdown.

Toronto’s labour disruption was a contributing factor to the city’s falloff in housing starts, especially affecting the construction of new condominium buildings. Another factor was inclement weather, which made it hard to build.

The low-rise sector did better in Toronto, showing a rise in activity. There has also been some spillover from the hot existing-home sector, with some people who haven’t been able to find an old home opting to buy a new one rather than waiting.

Analysts, however, were cautious in their optimism. They note that an overall excess of inventory may depress housing prices for a few more years, and that the recovery of this sector is likely to be gradual.
 

Edmonton Realty Report

Clover Bar Landfill to Close Its Facility

The Clover Bar landfill reached its capacity two decades later than expected. It had originally been anticipated that it would need to close by 1989. Thanks to composting, recycling, and diverting garbage to another landfill, the city was able to continue to use Clover Bar until 2009. An area of the landfill will still accept loads on an emergency basis afer August 17, 2009.

Native vegetation has already been planted on approximately 50% of the landfill. The remainder will also be covered with the same foliage. The city collects and uses methane and carbon dioxide emitted from decomposing garbage. It generates electricity for thousands of Edmonton’s residents. It is expected that gas will be produced by the landfill in lessening amounts for the next four to five decades.

Garbage will be diverted to landfills in west Edmonton which may be filled to capacity within four years. Some garbage will be composted. In the future, some garbage will be made into ethanol and methanol. Initially, landfills were the receptacle for all the city’s garbage, but recycling has changed that. The city currently composts or recycles 60% of its garbage, and the goal is to increase that amount (and decrease landfill deposits).
 

Edmonton Realty Report

Eroding slope continues to threaten Edmonton homes

It’s been 10-years since a home fell down the side of Edmonton’s riverbank, but the danger remains. Global News is reporting it appears the back decks of a least three more homes along 154th Street in the Riverbend area have collapsed down the embankment.

The city apparently warned home owners along the bank to vacate last year. But the owners have been doing their best to stay put, trying to meet several guidelines. A contractor is now laying specialized material in an effort to stabilize the bank, hopefully by fall.
 

Edmonton Realty Report

Most Reports Are Saying Modest Price Decreases for 2009 - What does this mean for you?

All of the recent reports are saying Edmonton is going to experience either a moderate price decrease of 1-2% or the status quo.  Sales could be up, could be down, it’s pretty hard to predict.  The one giant factor to consider these days is the incredible mortgage rates.  When you can have a 5 year fixed mortgage at 4.5% or less, this can not be beat.

National forecasts are that housing prices could dip 3% this year, but I don’t believe that will affect Edmonton.  Until the price of oil drops below $20/barrel, the Alberta economy will keep humming along.  Sure, there will be job losses, everyone expects that.  But the 15,000 job losses that are being predicted are almost inevitably going to be the junior members of unions, most of who came to Alberta during the last boom.

People are reacting emotionally to the negative economic news out there these days, and becoming emotional when it comes to a real estate transaction is a big mistake.  Sure you could wait for foreclosures later in the year, but will the mortgage rates still be at 4.5%.  If you had a $350,000 mortgage at 4.5%, the monthly payment is approximately $1937.  Take the same mortgage amount at 6%, the monthly mortgage payment becomes $2239.  That is a difference of $302/month!  Could be a payment on a small car, or a $3600/year addition to your RRSP or a savings account.

Make sure your choice is a good one for the long term.  Don’t hesitate waiting for a dip of maybe 1% in real estate values, you could be missing out of the perfect property for you!