Daily Market Update

by 02 Oct 2014
Calgary MLS for September near record level

New figures from the Calgary Real Estate Board continue the trend of higher sales. No talk of a slowdown in the city as the number of MLS sales increases by 11.93 per cent on a year ago with 2,148. That’s almost a record, just under the 2,197 sales in September 2005. Condos and townhouses led the market due to their relative affordability with sales volumes increasing by almost a third and according to CREB’s chief economist the long term outlook is positive. The average price of homes sold in September was $487,300; up 7.3 per cent year-over-year; while the median was up 5.59 per cent from a year ago at $425,000. One of the key improvements for the month was in sales of single family homes with a 3.48 per cent growth from the same time last year following two months of declines. Read the full story.
PIMCO says Bank of Canada should talk of rate rises

Fund management firm Pacific Investment Management Co. says that the Bank of Canada should revert to talk of higher interest rates to halt the inflating property market. PIMCO’s Ed Devlin says that removing reference to higher rates from official policy statements is fuelling the rising home prices and debt levels. Devlin says that he believes Canada’s property market is overvalued by 10 to 20 per cent but with low interest rates and allowing adjustments for inflation, it could be 30 per cent overvalued with the potential for a large adjustment. Read the full story.
Should older seniors sell up and rent instead?

If you’ve owned your home for most of your adult life the concept of selling your property and renting may be somewhat hard to grasp but could it be the best option? Ted Rechtshaffen is president and wealth Advisor at TriDelta Financial and he believes that for some older seniors it may make sense. He says that as prices can drop sharply and take many years to recover; that fees for downsizing will likely run to many thousands of dollars; and that if a move is required for health reasons it can take time to sell and free up the cash that’s needed. While much of this argument may not be relevant in today’s market, we know it could change, and Rechtshaffen suggests that you should be looking to live in a property you buy for at least six years. Read the full story.


  • by Linda Williamson, broker 10/2/2014 9:26:51 AM

    Yes some seniors could be better off renting but financially not many.
    This is very true if they are very senior and it looks like the market is headed south.
    Also individuals who cannot maintain a property without a huge amount of paid help
    plus a health problem are the only ones that will be better off renting.
    This of course means they also would have to have sound advice as to how to
    invest their equity from the home in a safe place that earns a good interest.

    Most others would actually lose money in the end by selling and renting.
    When you add up the rent paid out, the taxes on the invested money and the loss of the
    increase in equity in the property, it usually pays to stay where you are with help
    or buy a low maintenance condo or house.
    I am an Accredited Seniors' Real Estate Agent with Keller WIlliams in Toronto and
    have been helping seniors and their children through this decision making process to sell or not.
    If it is best for them to sell, then how to do so and where to go as there are so many aspects to consider.

  • by Regina Mumford 10/2/2014 10:46:11 AM

    In my experience as an Accredited Seniors' Real Estate Agent at Royal LePage with extensive exposure to the Seniors' Housing Market in Mississauga, the profile of a Senior purchasing a Retirement Residence Condo is single or a Senior couple, healthy and still active, between the age of 55 to perhaps early 80's, presently living in their multiple level detached homes with costly maintenance. Life in the private Retirement Residence Condo enable seniors to stay active, meet other seniors, enjoy organized activities and even have their meals in the in-house "5-star" restaurant. Seniors living in these Retirement Residence Condominiums have an option to seamlessly transition to a Full Care Retirement Rental (with optional graduated care services) in an environment familiar to them when their failing health demand more support, such as constant medical dispensing and preparation of meals. They are in a safe environment with professional nursing and retirement staff and their families would not have the burden of constantly ensuring they are safe in their own homes.

    Renting a privately owned Senior's Retirement Condo works best especially when you have a savvy financial manager ensuring that your investment keeps well ahead with inflation, cost of living, income taxes and his financial management fees. Renting is also a good alternative if you are single and have health issues which may require full care within 5 - 6 years. The transition to a Full Care Retirement Rental is also available to someone renting a condo.

    My favourite scenario is when the children purchase the Senior Retirement Condo and the aging parents pays for the carrying cost or pays market rents while staying there. When the parents graduate to Full Care Retirement service, the children have the option to rent the condo to someone else, sell or maybe move into it themselves. The aging population is growing and if renting is your parent's option, buying one is a great investment in the long run. Don't forget when buying a Senior's Retirement Condo that location! location! location and the reputation of the service provider offering Full Care Retirement Service is paramount.

    Finally, it appears today that downsizing from your almost life-long detached home is an universally inevitable step to transitional your golden years and it gets increasingly daunting to make that decision the later it gets.

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