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Re/Max KickStart 2011 and the State of the Market

Well, here I am in Toronto attending the huge Re/Max KickStart event at the Toronto Convention Centre. Simply a great event that features educational seminars, great networking opportunities and generally a lot of fun. Re/Max is about to announce a great new tool to help agents market homes during tomorrow's finale. This technology is being used a little bit already, but it will become very visible in the extreme near future as Re/Max agents head home and start implementing this in their home markets. I don't want to say anything more about this right now because why spoil a great surprise. I can't wait to try this out though. Buyers will love it!

All the realtors I have spoken to here report that business has been brisk in January. I certainly agree. Our market in Pembroke/Petawawa has been very active this month. I must certainly thank the members of our Canadian Forces. Lisa and I have certainly appreciated the opportunity of finding you great homes on the return from your tour overseas these last couple of months. The entire community and country is very thankful to all of you for your service, bravery and sacrifice. You are special people, and special families. It is an honour to work for you.

Everyone has no doubt heard and read about the new lending and mortgaging rules set to come into play in March of this year. I can't blame the government in doing this. They know that interest rates have to go up in the near future. We all have to start preparing for that, and this action will sort of force us to do it. We can't bite off more than we can chew. By making 30 years the maximum amortization period, (remember when it was 40 years just a little while ago?!) it will hopefully protect us from borrowing too close to the "just break even by the end of the month" type of scenario when it comes to paying our bills. If you are in a five year fixed mortgage with 3 years or so to go, chances are, interest rates will be up a point or two when it comes time to renew. The payments will go up accordingly. The higher the new rate, the higher the monthly bill. My advise to all my buyers, is never strive to be house poor. Buy a house in a comfortable range, where it will still be possible to do some other things you like to do.

The flip side, is that if you are thinking about buying a house, now is the time. Rates will never be lower. They will only go up. Qualifying for loans will get harder. It may be the last perfect time to get in the market for years to come. If you are paying rent now, maybe you should visit your local mortgage broker or bank and get pre-approved. See what you can comfortably afford. Why pay somebody else's mortgage? If you are looking to downsize, or upsize, this is the time to seriously think about it. Waiting for spring may be waiting too long. Either way, times will be changing!