Port Elgin Real Estate, Southampton (Saugeen Shores), Paisley, Tiverton, & Kincardine
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Port Elgin and Area Real Estate News
Updates on the Port Elgin, Southampton (Saugeen Shores), Paisley, Tiverton, & Kincardine real estate market, home buyer & seller tips and general real estate advice.
Bank of Canada decides to keep rates on hold.
In line with financial market expectations, the Bank of Canada announced on May 30, 2018 it was keeping its trend-setting overnight lending rate unchanged at 1.25%.
The economy continues to unfold largely as expected. Inflation is close to the 2% target, a little higher than the Bank had projected back in April.
That said, the Bank attributes most of that to the bump in gas prices in recent weeks and said that, as usual, it will look past the transitory impact of gas price fluctuations.
The Bank noted that “housing resale activity has remained soft into the second quarter, as the housing market continues to adjust to new mortgage guidelines and higher borrowing rates.”; however, in line with CREA’s forecast for home sales, the Bank also expects activity to start to pick back up later this year in line with solid underlying fundamentals.
The Bank reiterated that higher rates are still on the way, with financial markets betting the next 25 basis point hike will be at the next scheduled policy announcement on July 11.
That said, the Bank also reiterated that it will be taking a gradual approach to future hikes, given that the economy is likely more sensitive to interest rate movements now than it was in the past. Should business investment improve further as the Bank hopes, the associated increase in the economic potential of the country could also require fewer rate hikes to keep inflation on target.
As of May 30, the benchmark five-year lending rate was 5.34%, where it has been since it was bumped by 20 basis on May 9. Prior to its recent increase it had been steady at 5.14% since January. It is also now 70 basis points above where it was at the end of May last year. As of January 1, 2018, all mortgage applicants must qualify for financing based on no less than the benchmark five-year lending rate.
Canada’s major chartered banks advertise five-year fixed mortgage interest rates ranging from 3.74% to 5.59%. Homebuyers may negotiate a rate below lenders’ advertised rates depending on their creditworthiness and the degree to which they do other banking business with the mortgage lender.
The next interest rate announcement will be on July 11, 2018. It will be accompanied by The Monetary Policy Report, which updates the Bank’s economic forecast.
Modifying your driving habits can save you loads at the pump!
Maximizing your vehicle’s fuel efficiency will not only save you money but you’ll also be doing your bit for the environment! Here are a few tips that’ll pay off at the pump:
- Turn it Off – Don’t idle as it unnecessarily wastes fuel.
- Take it In – Regular tune-ups will increase your car’s efficiency.
- Check & Inflate – Keep your tires inflated to the proper pressure.
- Slow Down – Speeding increases fuel consumption by as much as 50%!
- Don’t Brake Down – Don’t constantly jam on your brakes and then rapidly accelerate.
- There’s an App for That! – Download an app that tracks the cheapest local gas prices.
- Lighten Up – Remove unnecessary items from your vehicle as extra weight reduces fuel efficiency.
The best way to save on gas is to keep your car in the driveway, so next time you climb behind the wheel, ask yourself if you can walk there instead. Just a few small changes to your driving habits such as combining errands or carpooling to work will save you a small fortune over time.
Spring is a time of renewal so why not bring the season’s vitality into your Port Elgin home by making some simple decorating changes. Here are a few ideas that’ll help you create a fresh spring feel:
- Swap out heavy curtains for blinds or sheers.
- Bring nature inside with a few plants or some fresh cut flowers.
- Switch your cushion covers to spring shades such as yellows and purples.
Celebrate spring’s arrival by bringing a breath of fresh air into your home. Just a few simple changes and a good spring clean can reflect the season’s sunny, fresh energy!
Home sales improve in April but listings at historic low.
Residential sales activity recorded through the MLS® system for the Grey Bruce Owen Sound and Wellington areas totaled 312 units in April 2018.
While this was still a decline of 12.1% from the record for the month seen in April 2017, it was effectively tied with 2016 for the second best April sales figure ever in the region.
On a year-to-date basis, home sales totalled 788 units over the first four months of the year. This was a decrease of 18.3% from the same period in 2017.
The average price of homes sold in April 2018 was a record $349,608, up 9.1% from April 2017. The more comprehensive year-to-date average price was $339,745, rising 10.3% from the first four months of 2017.
New residential listings in the region numbered 398 units in April 2018. This was a decrease of 17.4% on a year-over-year basis, and marked the lowest level of new supply for April in three decades.
Overall supply also stands at record lows. Active residential listings numbered 744 units at the end of April. This was down 21% from the end of April 2017.
Months of inventory numbered just 2.4 at the end of April 2018, down from the 2.7 months recorded at the end of April 2017 and well below the long-run average of 7.6 months for this time of year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
The dollar value of all home sales in April 2018 was $109.1 million, down 4.1% from the same month in 2017. Sales of all property types numbered 381 units in April 2018, a decrease of 16.8% from April 2017. The total value of all properties sold was $133.4 million, edging up 2.1% from April 2017.