First Central Mortgage Funding: Buying a Home - Old versus New
First Central posts on home-buying.
The Manitoba Real Estate Association asks: Are you in the market for a home? If so, how do you envision your ideal abode? Do you see yourself in a cozy old Victorian treasure complete with gingerbread trim and ornate fireplaces? Or does the image of a brand new home built with today’s state-of-the-art technology beckon to you?
Either way, you will find that the rewards of purchasing your own home are immeasurable. The security, comfort and peace of mind you get from home ownership - regardless of your preference for old or new - are well worth the investment.
Keep in mind that the time is right for purchasing. With lower interest rates, government incentive programs and more variety in housing opportunities than ever before, the market is very encouraging.
Look and compare
As you search for a home, you may want to look at and compare those that are both old and new before zeroing in on your particular preference. It is important to keep an open mind.
For instance, you may find a perfect 100-year old gem that needs a lot of renovation and tender loving care - but this may not necessarily fit into your budget plans, or your hectic schedule if you plan to do a lot of the work yourself.
On the other hand, you may find a new home attractive, but would have to spend extra money on landscaping and installing some of the amenities which may be part of the package in an older home.
In many cases, brand new homes aren’t always as close to the amenities you may crave - like corner stores, libraries, shopping and recreation areas - simply because the neighbourhood hasn’t developed yet.
Advantages of an older home
Advocates of older homes will tell you that it is difficult to duplicate the charm of an older house in a newer one. In addition, with an older home you often get the added advantage of improvements made by previous owners.
Here are some of the advantages of an older home:
* you can see exactly what you are getting and don’t have to try to picture the completed house from a set of blueprints;
* the house has been “shaken down”, i.e. structural faults are clearly seen and can be or have been corrected;
* the neighbourhood is fully built up and its character has been established; there are existing recreation areas and a variety of local services. Landscaping already exists.
* there are generally fewer immediate move-in costs because basic features like drapery tracks (and sometimes even window coverings) are already installed. And chattels such as special lighting fixtures and appliances are often included with the sale of an older home.
Advantages of a new home
On the other side of the coin, new home advocates will point out that buying a brand new house is like getting a fresh start. You can make a choice between a custom-built home designed exactly to suit your needs and a home built from plans you have seen built into a model home.
Here are some other advantages of buying a new home:
* you have much more flexibility with a new home in customizing your decor and landscaping to suit your tastes. You get fresh, unblemished walls and you can usually choose the type of flooring, carpeting and cupboards that you want;
* with most new homes, you generally get more storage space (such as closets) and larger rooms;
* today’s minimum standards for plumbing, electrical, insulation and heating systems are higher than ever before; and
* traditionally, land values tend to increase during the first few years as neighbourhood services develop and the subdivision nears completion.
Consider location
Regardless of what type of home you choose - old, new or in between - be sure you examine the location.
First Central Mortgage Funding presents Manitoba Real Estate Association
The Manitoba Real Estate Association (MREA) represents over 1,600 REALTORS® province wide who are involved in every aspect of the real estate transaction, including the sale and purchase of residential and commercial properties, leasing, property management and construction.
REALTOR® Members of the MREA abide by a Code of Ethics which ensures that the rights and interests of consumers of real estate services are protected.
At MREA we are committed to creating communities where everyone thrives by improving the quality of life in Manitoba with REALTOR® driven initiatives like The MREA Shelter Foundation, REALTORS® Care volunteer events, and letspayfair.com (legislative lobbying).
The MREA is responsible for developing and administering real estate licensing courses for all prospective salespeople and brokers in the Province.
History
MREA was founded in 1949 to organize real estate activities and develop common goals across the province, including promoting higher industry standards, protecting the general public, and preserving private property rights. The Association continually strives to improve the image of its members by enhancing education and professional standards.
Our Mission
The Manitoba Real Estate Association serves and regulates its members by providing educational, professional, and ethical standards and services, and promotes public policies for the benefit of its members and the public they serve.
Visit us at:
1240 Portage Avenue,
2nd Floor,
Winnipeg, Manitoba
R3G 0T6
First Central Mortgage Funding Report: APRIL MLS® MARKET TAKES A BACKSEAT TO 2009 FLOOD
First Central posts news release from Winnipeg Realtors Association: WinnipegREALTORS® has been there before and will likely go through it again. As was the case in 1997, the MLS® market dipped noticeably from the same month the year before when there was no major flood to encounter and preoccupy yourself with as a resident of Winnipeg or outlying rural municipalities in the floodplain. It was confirmed by a provincial communications officer involved in releasing flood bulletins that the first two weeks of April involved daily news conferences and the City of Winnipeg were issuing news releases and holding news conferences too.
It really is a tale of two entirely different markets in April. If you look at the first half of the month, sales were down 29 per cent while dollar volume was off 25 per cent in comparison to the same time frame the year before. In direct contrast and a complete about face, the second half of April resulted in sales and dollar volume being down less than 2 per cent in comparison to the same period in 2008. Reinforcing the downturn in early April was the fact new listings entered on the MLS® market decreased 15 per cent the first half and were actually ahead by one listing the second half.
“Protecting one’s property or helping another owner save theirs will always take precedence over marketing your own home and that includes our REALTOR® members who were involved in many instances too with flood-related efforts,” said Deborah Goodfellow, President of WinnipegREALTORS®. “Winnipeggers in particular are grateful to former premier Duff Roblin for his vision and foresight years ago to build a floodway to protect citizens and their property from the devastation of a flood.” April MLS® unit sales are down 15% (1,150/1,355) while dollar volume is down 12% ($239.5 million/$272.6 million) in comparison to the same month last year. April 2009 still resulted in the second highest dollar volume month on record for April and even sales rank among the top ten best Aprils. Year-to-date MLS® sales have decreased 12% (3,239/3,689) while dollar volume is off 7% ($650.0 million/$701.4 million).
“Considering where we started in April and how we finished in the end, I believe the MLS® market in April had a healthy rebound which gives us hope going into May that our spring market has finally arrived,” said Goodfellow. “You also have to keep in mind we are comparing this April to the best April on record where sales this month had never before surpassed 1,300.” If the first Monday of May is any indication when WinnipegREALTORS® staff process many MLS® listings and sales after a weekend, the huge pile of listings and sales they were faced with compares very favourably with last year. I am sure helping this strong resurgence in activity along is mortgage rates that are unprecedented.
“When you look at mortgage rates today, they are lower than most of us have seen in our lifetime,” said Daryl Harris, Manitoba Director of Canadian Association of Accredited Mortgage Professionals. “The Bank of Canada has records going back to 1950 on average fixed-rate and long-term mortgage rates and the best rate was 5 per cent back in early 1950. Discounted five-year rates available today through Accredited Mortgage Professionals are under 4 per cent so it really is an opportune time to take advantage of such favourable mortgage finance conditions.”
For residential- detached sales, the most active segment of the MLS® market in April was the $150,000 to $199,999 price range with 24% of total sales. Next most active price range was $200,000 to $249,999 at 21%. 45% of the residential-detached sales in April were at or above list price.
Average days on market for residential-detached sales in April was 31 days, 1 day behind last month and 9 days off the fast pace set in April 2008.
