Lethbridge Real Estate Outlook

Any speculation about the Lethbridge Real Estate Market this year has been put to rest. I can say without hesitation that the market is very active. In fact the price range below $300,000 could be described at hot!

Many agents have found themselves in multiple offer situations reminiscent of 2006/2007 – the boom years for Lethbridge Real Estate.

Clearly the Government’s stategy of reducing interest rates to rock-bottom levels has paid off handsomely. As real estate is one of the biggest driving forces in the economy, this bodes well for an early end to the recession.

The only “fly-in-the-ointment” has been the market above $300,000, which is still struggling from a surplus of properties. However, there is no question the market is pushing from the bottom up, and I believe that the $300,000 plus sector will come into it’s own next year.

There is no business were the principles of supply and demand are more evident than real estate. Lethbridge has seen a drop from a high of about 700 houses for sale last year, to our present 550. This includes every conceivable type of property within Lethbridge’s boundaries. This means less choice for buyers and most likely a modest increase in prices during the next 12 months.

Suited homes have been selling well, as investors flock back to real estate to take advantage of high rents, low interest rates and the probability of price increases in the next few years.

My advice if you are “sitting on the fence”, is to buy now and lock in at historically low mortgage rates for the next five years. Real Estate is rebounding.

This information is brought to you by Allan Miller of Sutton Group Lethbridge. For more information about buying or selling Lethbridge Real Estate, please view my primary web site www.TeamMiller.ca or e-mail me at info@TeamMiller.ca. Telephone 403-320-6411.

Mortgage APR vs Interest Rate

Mortgage APR vs Interest Rate: What Should You Go For?

When you’re shopping around for a mortgage loan, comparing loan offers from different lenders can become an intimidating task. The interest rate (also known as the note rate) that is applied by the lenders to work out your monthly payment is just a portion of the total cost of a mortgage. This is the reason why it becomes so confusing for the borrowers to compare mortgages when they only take the interest rate into consideration. A better technique of comparing mortgage loans is the mortgage APR or Annual Percentage Rate.

The Mortgage APR Formula

The mortgage APR formula merges the interest costs of a loan with other charges required by a lender for the duration of the loan. Mortgage APR is expressed as a yearly rate. Hence, Mortgage APR lets you know the actual cost of borrowing and is a better tool than interest rate to compare loan offers. Borrowers can use it as a helpful yardstick.

The Truth in Lending Act

The Truth in Lending Act necessitates lenders to clearly mention the APR on the advertisements of their loan products. It is typically stated just after the note rate. The goal is to stop lenders from advertising cheap interest rates to attract consumers and at the same time, covering fees.

Limitations of APRs

Though comparing APRs is more helpful than just comparing the interest rates while looking at various mortgage offers, it has some limitations:

Some upfront fees are not incorporated in the formula – like credit report fee, home appraisal fee and title fee. These fees might differ from one lender to another. You should remember to request your lender for a Good Faith Estimate for closing costs and question them to know which ones are not included in the APR.
Mortgage APR is handier for fixed rate mortgages than adjustable rate mortgages. As nobody can forecast how interest rates would vary with time, the APR for adjustable rate mortgages is calculated on the basis of predictions, which might prove to be incorrect.
The APR takes for granted that you would bear the loan for its entire tenure, which might be 30 years, however, only a small number of homeowners hold a mortgage for such an extensive period. If you intend to refinance within 5-7 years, a loan with bigger upfront charges can land up being costlier than what its APR implies.

This information is brought to you courtesy of Max Harper – Visit Max’s web site at http://www.mortgagefit.com/apr.html or email Max at maxharper2@gmail.com

For additional information about Lethbridge Alberta Real Estate, please view my primary web site www.TeamMiller.ca, or contact me at 403 329-0479, email: info@TeamMiller.ca.

Lovely 3 Bedroom Half-Duplex

Don’t miss this super duplex, ideal for first time buyers, students or investors. Deceptively spacious with 1300 sqft developed. Large open floor plan with great kitchen and plenty of room for the whole family. Features include living room with gas fireplace and spacious dining area. New carpets throughout, good sized yard and convenient location to U of L, shopping and schools. On bus route. This property is a must see.

View more photos and information about this home at:
http://www.teammiller.ca/listings.htm
Please call Allan Miller today for details or a personal showing, 403-320-6411.

For more information about buying or selling Lethbridge Real Estate, please view my primary web site www.TeamMiller.ca or e-mail me at info@TeamMiller.ca

This information is brought to you by Allan Miller of Sutton Group Lethbridge.

Wonderful Family Home in Riverstone

This lovely Riverstone family home in immaculate condition, just move in and enjoy. The Sentra design by Daytona Homes never fails to impress. Large master over the garage with en-suite & walk-in closet, 3 additional bedrooms, island kitchen with large pantry, office, double garage and underground sprinklers.

You will be impressed by the tilework, stylish decor and layout. The central air will keep you cool during summer days and the sauna will warm you during the cold winter months.

View more photos and information about this home at:
http://www.teammiller.ca/223_rivermill/index.htm
Please call Allan Miller today for details or a personal showing, 403-320-6411.

For more information about buying or selling Lethbridge Real Estate, please view my primary web site www.TeamMiller.ca or e-mail me at info@TeamMiller.ca

This information is brought to you by Allan Miller of Sutton Group Lethbridge.

Quality Bungalow in Riverstone

Ideally situated in a desirable Location.

Price: $349,900
Bedrooms: 4 Bathrooms: 3 Age: 2 years.
Fully Developed with A/C. 1,171 sq. ft.

Don’t miss out on this lovely two year old bungalow in immaculate condition. Quality is evident in this charming home. Enjoy lots of light, cathedral ceilings, central A/C, a spacious garage with double driveway and a quiet side street in desirable Riverstone.
The property is close to the coulees, schools, university and Riverstone Park lake. Just one year young, this Greer built home is very energy efficient, benefiting from the latest insul-wall insulation – say goodbye to high utility bills.
The front and sides of the home have been tastefully landscaped in a low maintenance style with lawn in the rear. The basement was finished by a professional contractor. Enjoy all the benefits of a newer, modern home, in move-in condition.
Please call Allan Miller today for details or a personal showing, 403-320-6411.
View more photos and information about this home at:
www.teammiller.ca/234/index.htm

Lethbridge Real Estate Picking Up Steam?

After a very slow winter season, April has seen a substantial rebound in Lethbridge real estate. While some of the increased activity can be credited to the onset of good weather; the real driving force is undoubtedly the historically low interest rates and lower house prices.

For the first time in two years, many Sutton real estate agents are finding themselves involved in multiple offer situations. Homes are selling in shorter time frames and for higher prices. If things continue that way, it could be a very active real estate season in Lethbridge.

The last recession in 2001 was ended by a property boom which was caused by rock bottom interest rates. Could we see the start of something similar this year? It is anyone’s guess at this point, but there is no doubt that the spin-offs of a healthy housing market are enormous, and benefit numerous local trades’ people and manufacturers alike.

With house prices down compared to last year and the cost of financing being as low as possible, it is easy to get excited about the prospects for real estate in 2009.

This information is brought to you by Allan Miller of Sutton Group Lethbridge.
For more information about buying or selling Lethbridge Real Estate, please view my primary web site www.TeamMiller.ca or e-mail me at info@TeamMiller.ca

Lethbridge Real Estate in 2009

The outlook for Lethbridge Real Estate in 2009 is more complicated than usual. A general downturn in the economy at the end of last year was countered by aggressive interest rate cuts by the Bank of Canada in March this year.

First time buyers in Lethbridge are being enticed by these historically low interest rates. As a result, I would anticipate the market for homes under $250,000 will be very active this summer. Real estate investors are also seeing the advantages of low financing costs, coupled with high rents and low vacancy rates.

January was a flat month in real estate sales in Lethbridge. The big question for most realtors in January was whether demand for real estate in Southern Alberta would be down compared to 2008. However, February saw a substantial increase in sales suggesting this will not be the case.

Perhaps the biggest impact on the Lethbridge real estate market has been a tightening of credit requirements. We are seeing a number of properties go under conditional offer, only to be re-activated a short time later. The reason is that people with margin credit are being turned down by their lenders, in some cases even after being pre-qualified for financing.

The best news is that those with good credit will have no problem; mortgage interest rates and payments are presently at an all time low. Real estate prices are stable and coupled with favourable financing; buyers have the opportunity to get a lot more home for their money, compared to last year.

If you would like further information, or need help with the buying or selling of Lethbridge real estate, please visit my primary web site www.TeamMiller.ca, e-mail me at info@TeamMiller.ca or call 403-320-6411 and ask specifically for Allan Miller.

Best regards
Allan Miller
Sutton Group Lethbridge

Investing in Lethbridge

Having just made the last Top 10 Listing in 2006, Lethbridge continues to impress in 2008. The region’s economics have shifted strongly in Lethbridge’s favour along with a stronger and more aggressive Economic Development plan.
Canadian Business Magazine (Froats & McGugan, 2008) has placed Lethbridge in the top 50 of Canada’s Best Places to Live, based on 16 indicators, including weather and air quality; prosperity (including average household income and discretionary income); affordable housing as well as lifestyle (crime rates, population growth and volume of health care professionals). Lethbridge was ranked 48 out of 154 communities in Canada.

Population & Income
The 2008 Lethbridge census results show that the population of the City of Lethbridge was 83,960, up from 78,713 in 2006 and increased 2.78% from 2007. This is an addition of 5,247 new residents in just two years, a dramatic increase of 6.6%. This growth trend has been constant and strong as the population has grown by over 35% since 1997 (City of Lethbridge, 2008).
The largest percentage of the population is 20-24 years (12.8%), which is far higher than the national average. Just over 14% of Lethbridge’s population is over 65 years, which too, is far higher than the Canadian average. So, although it was once known as only a ‘retirement town’, Lethbridge has shed this image and become a wonderful place to raise young families.

Housing Trends
Strong economic and demographic factors coupled with a lack of quality listings in the resale market will maintain new home activity at high levels. High employment rates and a higher cost of home ownership will continue to result in an increase in need for rental property, providing investors and homeowners alike a more balanced market than in many regions of the province.
After a torrid 2007, a degree of sanity is expected to return to the market in 2008 in both housing starts and sales of existing homes. As of April 2008, there were 670 dwellings under construction (City of Lethbridge, 2008). As the university and college grow, there will be an increased demand for student rental housing. There is also a push from Calgary and Edmonton from people looking for a slower pace of life and finding it in Lethbridge.

For more information about Lethbridge Real Estate, please visit my primary web site www.TeamMiller.ca or call me at 403-320-6411.

Terrific Home in Prestigious Riverstone

I have never used my blog to feature a home before, but this one is a honey, and well priced for Riverstone.

A quick run-down of the features of this new listing are:

Immaculate energy efficient Riverstone Bungalow. Fully developed with Bright open floor plan, tiled foyer, cathedral ceilings, spacious living room, large kitchen, rear deck, 4 spacious bedrooms, master has walk-in closet and stunning 5 piece ensuite, family room, central air, double attached garage, lane access, room for RV parking.

Additional details and a virtual tour are available at the following page of my primary web site:
www.TeamMiller.ca/234/index.htm. Call Allan at 403 320-6411 to view today! MLS. $349,900.

5-8% Price Increases in 2008

Stan Mills, President of the Lethbridge and District Association of Realtors, recently made the following statement in the Real Estate Insight magazine:

“The sales statistics for the end of February indicates that sales are meeting and exceeding the numbers for this time last year, just as we are gearing up for a busy construction season and indicators show that the average sale price will continue to increase by 5 to 8% this year”.

Projections are never absolute, but Stan is a long standing broker in Lethbridge, and a respected real estate instructor at the Lethbridge College. I feel that 5 to 8% is realistic.

The recent sale of over 700 apartments in Lethbridge, is already causing controversy. They were bought by an Ontario company, and about 150 are to be sold as private dwellings. It goes without saying that an already tight rental market will be severely affected, especially as Lethbridge University continues to grow.

If you are interested in buying or selling real estate, or would like to search Lethbridge MLS homes for sale, please view www.TeamMiller.ca, or contact Allan Miller of Sutton Group Lethbridge at (403) 329 0479.