Halifax Real Estate Blog

The Bagogloo Team wants to thank their clients, colleagues and friends for a fantastic 2011! Merry Christmas!

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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Balanced conditions set to return to most Canadian housing markets in 2012, while residential values expected to once again set new records, says RE/MAX

 

Canadian residential real estate defied conventional logic and outperformed expectations in 2011, posting another solid year of housing activity virtually across the board.  The trend is expected to carry forward into 2012 as Canadians continue to demonstrate their faith in homeownership, despite concerns over the European debt crisis and its impact on the global economy, according to a report released by RE/MAX. 

The RE/MAX Housing Market Outlook 2012 examined trends and developments in 26 major markets across the country.  Eighty-eight per cent (23/26) anticipated average price increases by year-end 2011—with percentage hikes ranging from one to 16 per cent. The forecast for 2012 shows the upward trend moderating, but still ahead of 2011 figures.  Overall home sales are expected to remain on par or ahead of last year’s levels in 85 per cent (22/26) of markets in 2011—including Saskatoon with a year-over-year percentage increase of 13 per cent and an eight per cent uptick in Calgary, Winnipeg, Hamilton-Burlington and Sudbury.   Almost half of Canadian markets will match the 2011 performance, while the remainder should post increases ranging from one to five per cent next year. 

By year-end 2011, an estimated 460,000 homes are expected to change hands, up three per cent from the 447,010 units reported in 2010.  Sales are expected to climb one per cent to 464,500 units in 2012.  The value of a Canadian home is set to climb to $363,000 this year—an increase of seven per cent over the $339,030 posted one year ago.  By year-end 2012, the average price in Canada is forecast to appreciate two per cent to $371,000.

The Canadian housing market has demonstrated tremendous resilience in recent years, but 2011 stands out.  Instead of responding to economic concerns both here and abroad with a retreat in sales and prices, residential real estate markets actually experienced an upswing in the volatile third and final quarters.  While clearly not impervious to the impact, Canadian consumers are intent on making their moves now, in advance of higher housing values and rising interest rates down the road.

Improvement in both provincial and local economies, especially during the second half of 2012, should serve to further stimulate home-buying activity.  Calgary, Saskatoon, and Halifax-Dartmouth will likely lead the country in unit sales in 2012, each with a projected increase of five per cent.  Regina, Greater Toronto, Saint John, Moncton, and St. John’s anticipate a three per cent increase in home sales next year.

The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further.  Nationally, we remain on an upward track, and the confidence consumers have demonstrated in housing over the past decade will prove well founded once again next year.  The rising belief in homeownership is key, especially among Generation X and Y—some of whom are making their moves sooner.  Boomers and retirees are changing, too. They’re healthier and more active, with longer life expectancy.  Overall, we’re seeing an extension of the homeownership cycle, and it’s great news for housing.

 

While tighter supply levels contributed to steady price appreciation in most major markets across Canada this year, an increase in inventory more in line with years previous should ease upward pressure on average price in the year ahead.  The highest appreciation is expected in Regina, where values are forecast to increase eight per cent, followed by Greater Toronto, Halifax-Dartmouth, and St, John’s—each posting a five per cent gain. Overall, 81 per cent of the markets examined are forecast to set new records for average price next year.  Noteworthy milestones include Greater Vancouver, which will break the $800,000 threshold, as well as Regina and Kitchener-Waterloo, which will reach the $300,000 mark.

While prices will remain on the upswing, buyers will benefit from greater selection moving forward.  Stability or modest growth will characterize sales activity while GDP moves forward at a more muted pace in 2012.  Whether markets will meet or potentially exceed projections will hinge largely on consumer confidence.  An unexpected call for interest rate hikes could also serve to bolster sales.

Other highlights include:

• Population growth and immigration are major factors expected to prop-up housing demand and household formation in the coming years.  Since 2000, Canada’s population has experienced double-digit growth of 11 per cent.  By 2031, over 42 million people are expected to call Canada home.
• Investment will also continue in Canada’s major centres, with income-producing properties at the top of the most wanted list.  Low vacancy rates and stock market volatility reinvigorated this segment of the market in 2011 and the very same factors are forecast to influence sales moving forward.
• Condominiums are expected to gain an increasing share of the marketplace, particularly in Western Canada and Ontario.  A focus on higher density urban growth is impacting purchasing patterns and introducing new, affordable options—critical to the attainability of homeownership as prices continue to move upward.
• Housing stock in major Canadian centres will improve as municipalities focus on redevelopment and revitalization. 

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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We’ve already felt the boost this November in real estate in the Halifax-Dartmouth area, and you certainly can’t miss the optimism in the air, ever since we learned that indeed the Ships WILL Start Here! But this week the TD Bank has announced even more promising news, predicting that Nova Scotia could well be the fourth-best-performing economy in Canada by 2013 with many “ripple-down” positive effects for the rest of the province, and more. John Demont with the Chronicle Herald has the report.

Halifax’s $25-billion naval shipyard contract will single-handedly transform Nova Scotia’s underperforming economy into one of the strongest in Canada by 2013, a TD Bank Group economist predicts.

Talk about a turnaround: this year, before the Halifax Shipyard contract begins to have an impact, Nova Scotia’s economy is slated to grow by a modest 1.4 per cent.

The bank had been expecting the economy to limp along during the next two years. But since the awarding of the shipyard contract, TD is far more optimistic about Nova Scotia’s prospects. So much so that its economics department has taken the unusual step of updating its prognosis for the provincial economy.

“This contract has the potential to offer a better standard of living and more long-term stability for the province,” TD economist Sonya Gulati said Monday.

She added that the contract could help slow the exodus out of Nova Scotia by “making people do a double take as to whether or not they have to leave.”

Gulati predicts the provincial economy will grow by 2.6 per cent in 2013, which is 0.5 per cent more than originally expected.

By the bank’s reckoning, that should leave Nova Scotia — previously dead last in terms of expected GDP growth in 2013 — tied with Newfoundland and Labrador as the fourth-best-performing economy in the land. (Alberta, Saskatchewan and Ontario are expected to lead the country.)

Halifax Regional Municipality, which is forecast to grow by 3.2 per cent in 2013, will do even better than the province.

The shipbuilding job bonanza is already slowly starting. The Irving family-owned Halifax Shipyard has received 2,000 applications since the contract was awarded on Oct. 19.

So far, the yard has hired 50 people, most of them electricians. But at peak, Irving spokeswoman Mary Keith says, 1,000 of the 2,700 people expected to be working at the shipyard should be in white-collar sectors like IT, engineering and finance.

Those numbers don’t surprise TD’s Gulati. She expects the impact of the shipyard contract to ripple through most sectors of the Nova Scotia economy. Under the federal government’s Industrial and Regional Benefits policy for procurement contracts, a substantial amount of the work must go to small- and medium-sized enterprises, which make up the lion’s share of the provincial economy.

She also thinks benefits will spread far beyond the boundaries of the Halifax region. The reason: some 70 per cent of Nova Scotia’s manufacturing companies are located outside Halifax. The same is true of roughly 40 per cent of the province’s research and development, engineering and technical consulting firms.

That’s music to the ears of Bert Lewis, business development manager of Mulgrave Machine Works Ltd. in Mulgrave.

“Our expectation is that there will be such a volume of work that one yard will not be able to handle it,” said Lewis, whose custom metal fabrication company hopes to design and fabricate pressure vessels and tanks for the shipyard contract.

“We are ready, willing and able to support that initiative and look forward to being part of it.”

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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Mark Hurley, AMP - For anyone looking at a variable rate mortgage these days, you will notice the interest rate is not as attractive as it once was. Over the past few months, the banks have reduced their discount from prime rate minus .80% ( 2.20% ) to prime rate minus .10% ( 2.90% ). We may even see the variable rate go to prime plus, like we did during the credit crisis a few years ago.

So, does this mean we should all look at fixed rates now? Not necessarily. Everyone’s situation is different, but it should be a conversation you have with your Mortgage Broker or Banker. Will the variable rate discounts return like they did a few years ago after the financial crisis? No one can say for certain if they will, but in my opinion, if they do they will not be as deeply discounted as they once were.

Rob Carrick with the Globe and Mail explains why the variable rate discounts have all but disappeared:

Variable-rate mortgages are so over.

Go fixed rate if you’re arranging or renewing a mortgage, and think hard about the four-year term. If you take in all the recent developments in the mortgage market, this is the most logical strategy.

Variable-rate mortgages are being sold at the prime rate in many cases right now, which is 3 per cent. The traditional discount off prime? Snuffed out by the banks. They’ve decided they aren’t making enough money from discounted variable-rate mortgages, so goodbye discount for the most part. If you shop around, maybe you’ll get 0.2 of a point off prime.

Now for the fixed-rate alternative. Global economic uncertainty and sluggish growth mean you’ll pay in the area of 3 per cent for a four-year term. This explains why veteran mortgage broker Peter Majthenyi has pretty much given up on variable-rate mortgages.

“For 10 years, I’ve said don’t waste your money on a fixed-rate mortgage,” Mr. Majthenyi said. “Today, I just cannot in good conscience put a borrower into a 3-per-cent variable when for the same rate I can put them in a four-year fixed.”

Mr. Majthenyi calls this a “temporary break” from variable-rate mortgages. He’ll see what happens when today’s four-year terms expire. Meantime, he’s gone from writing about 98-per- cent variable-rate mortgages a year ago to virtually zero now.

Numbers from the Canadian Association of Accredited Mortgage Professionals (mortgage brokers, to put it in English) show that variable-rate mortgages had about one-third of the market as of this past spring, compared to 21 per cent four years ago. Interest in variable-rate mortgages was as strong as ever going into the summer as a result of an uncertain global economic outlook that was expected to keep interest rates low. Variable-rate mortgages could be had back then for 2.25 per cent, which represented a discount off prime of 0.75 of a point. Four- and five-year fixed-rate mortgages would have cost roughly 3 to 3.5 per cent, and that included a strong discount.

This was an ideal environment for variable-rate mortgages. The prime rate, used by lenders as a reference for many of their loans, was low and expected to stay that way for as long as it took for the global economic mess to resolve itself. The prognosis was for continued savings versus a fixed-rate mortgage.

Then came two developments that led to Mr. Majthenyi’s 180-degree turn against variable-rate mortgages. One, the cost of fixed-rate mortgages fell a little as a result of the stock market uproar in August and September. Here’s how that worked: Money flowed out of stocks and into bonds, which set the trend for mortgage rates. When a bond’s price rises, its yield falls. And so, as bond yields moved lower in the late summer, so did rates on fixed-term mortgages.

The second development was a decision by the big banks to clamp down on discounts given to customers going variable. “Bottom line, the banks have been stuck with too many variable-rate mortgages that are not profitable,” Mr. Majthenyi said. “How do they make them more profitable? They have to increase their profit on each mortgage.”

A few mortgage brokerage firms now advertise variable-rate mortgages at 2.8 per cent, or prime minus 0.2 of a point. But Mr. Majthenyi said many of the big lenders he deals with as a broker are now at prime. Looking ahead, he sees the market settling into prime plus or minus 0.2 for variable-rate mortgages.

You may still be able to save a token amount with a variable-rate mortgage over a fixed-rate mortgage with a term of four or five years. But it’s not hard to imagine the advantage of the variable rate disappearing in a year or so as the economy rallies. Then, you could be looking at a long period of rising rates.

So get over any ideas you have about variable-rate mortgages being cheap enough in the here and now to overlook the risk posed by future rate increases. In today’s market, variable-rate mortgages are yesterday’s news.

Finally, a quick word from Mr. Majthenyi for people who are in the middle of variable-rate mortgages with those juicy discounts of days gone by: Enjoy.

“You should hug and love those mortgages to the last possible moment because you’re probably not going to get them again.”

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Post courtesy of Mark Hurley,AMP, 902-877-1646 or by e-mail at mark.hurley@migroup.ca. If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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As everyone now knows, Halifax's Irving Shipbuilding has won the competition for the combat vessel procurement, and our region will stand to benefit from up to $25 Billion in spending related to that contract.

The project will likely have positive impacts in all of the City, Province and Region, with forecasts from the Provincial Government predicting thousands of jobs created, millions in tax revenues among other economic spinoffs

For residents of HRM, the project will mean growth in our housing market, and an influx of people to the HRM. There have already been public appeals from James Irving (Irving Shipbuilding) and others for Maritimers who had travelled West looking for work in the trades to come home. Whether it's workers returning to Halifax after having left or new migrants to the city, we will almost certainly see increased levels of net in-migration to HRM, and this trend should continue for much of the contract’s life (up to 30 years). The Chronicle Herald's Paul MacLeod writes today that Irving has said their shipyard workforce will increase over the life of the contract from 1100 to 2700, with an average workforce of 2400 to 2500 - this is in addition to the workforce that will inevitably be needed for shipyard renovations and expansion, and all the spinoff job creation in the supply chain, infrastructure, construction (residential and commercial) etc... So, we'll have more people and more skilled labour.

What does that mean for housing?  At first, not much. It will take at least a year for the "umbrella agreement" between Irving and the Federal Government to be negotiated, and until that's done little is really known about specifications required for either the ships or the yard itself. Once that hurdle has been cleared, construction and upgrades will commence at the yard and no doubt hiring will begin as the ramp-up to production begins. Initially, we will see more demand for housing all over HRM as trades people begin to move home or relocate here to be part of the project.  There is not one specific area of HRM likely to benefit more than others, as the increase in home buyers will likely be made up of people with varying backgrounds, levels of experience, and purchasing power. Over time, as the project unfolds, the first-time homebuyer segment should see larger increases in demand, which will put upward price pressure on the whole housing market in HRM. Expect to see an increase in housing starts for both single family and multi-family new home construction, and overall an increase in buying activity within the housing market as a whole. Throughout this, average prices should rise year after year on a more aggressive pace than what we've seen since 2007.

Although we'd all like this project to make an instant difference economically, it's important to realize that it will take time to ramp up production and spending, and then trickle down through the city's economy.  Although consumer confidence will undoubtedly see a boost right away, it will take time for demand effects to be seen within the HRM housing markets, and it may be up to three full years before real growth effects are felt by buyers and sellers. In the short term, resale sales should begin to rise first, followed later by an increase in new home construction.

This means that now is an excellent time to buy a home, either as a residence or for investment – given that we are poised to see increases in demand for most types of residential homes, as well as a gradual bump in average prices, now is the time to get in before these changes work their way through the markets. Take those factors into consideration along with historically-low mortgage rates and you have an almost unique opportunity to buy before what we all expect to be several good years in the HRM property market.

There's no doubt this announcement is a boon to our area, and will have a far-reaching impact on our whole region - the sum total of which has yet to be seen or quantified. We look forward to helping all of our clients navigate the coming changes smoothly and while taking best advantage of them, provide the best value possible and professional, expert service.

Some of the information contained in this blog post consists of forward-looking statements and should not be relied upon as professional advice. For more detailed analysis or help with specific questions, call The Bagogloo Team at 902-830-9006 or email info@halifaxmetrohomes.com.

 

The Bagogloo Team

October 20, 2011

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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Mayor Peter Kelly and Members of Halifax Regional Council invite you to celebrate the historic renovation of the Victoria Jubilee bandstand in the Public Gardens.

 

Where: Halifax Public Gardens
When: Victoria Day - Monday, May 23, 2011

from 5:30 - 7:30 pm

Rain Date: Sunday, May 29, 2011 from 2:00 - 4:00 pm

For more information click here!

 

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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From February 11 – 27, 2011 Halifax will be hosting its first Canada Winter Games!

The Country’s best young athletes will be competing in more than 20 sports at a variety of venues around the city and nearby ski hills. Halifax will be playing host to numerous visitors, including athletes and their families to sports fans, media and VIPs. Join in the excitement! For more information please visit http://www.canadagames2011.ca/.

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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The Bagogloo Team would like to offer our valued clients the opportunity to pick up some tickets to the opening ceremonies of the 2010 Halifax Greek Festival.

This event is sure to be a great time, with many performances, traditional Greek dishes, and even a chance to win a trip for two to Greece. The Greek Fest is taking place this year from June 10th -13th at St. Georges Greek Orthodox Church on Purcell's Cove Road. Get all the details and a full schedule on the Greek Fest website.

These tickets are available on a first come, first serve basis, so if you are interested in going to the Greek Fest, give us a call or drop by The Bagogloo Team office at 102 Chain Lake Drive Suite 1B.

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The Bagogloo Team on Facebook

Already Optimistic Predictions for the Nova Scotia Economy Continue to Improve

We’ve already felt the boost this November in real estate in the Halifax-Dartmouth area, and you certainly can’t miss the optimism in the air, ever since we learned that indeed the Ships WILL Start Here! But this week the TD Bank has announced even more promising news, predicting that Nova Scotia could well be the fourth-best-performing economy in Canada by 2013 with many “ripple-down” positive effects for the rest of the province, and more. John Demont with the Chronicle Herald has the report.

Halifax’s $25-billion naval shipyard contract will single-handedly transform Nova Scotia’s underperforming economy into one of the strongest in Canada by 2013, a TD Bank Group economist predicts.

Talk about a turnaround: this year, before the Halifax Shipyard contract begins to have an impact, Nova Scotia’s economy is slated to grow by a modest 1.4 per cent.

The bank had been expecting the economy to limp along during the next two years. But since the awarding of the shipyard contract, TD is far more optimistic about Nova Scotia’s prospects. So much so that its economics department has taken the unusual step of updating its prognosis for the provincial economy.

“This contract has the potential to offer a better standard of living and more long-term stability for the province,” TD economist Sonya Gulati said Monday.

She added that the contract could help slow the exodus out of Nova Scotia by “making people do a double take as to whether or not they have to leave.”

Gulati predicts the provincial economy will grow by 2.6 per cent in 2013, which is 0.5 per cent more than originally expected.

By the bank’s reckoning, that should leave Nova Scotia — previously dead last in terms of expected GDP growth in 2013 — tied with Newfoundland and Labrador as the fourth-best-performing economy in the land. (Alberta, Saskatchewan and Ontario are expected to lead the country.)

Halifax Regional Municipality, which is forecast to grow by 3.2 per cent in 2013, will do even better than the province.

The shipbuilding job bonanza is already slowly starting. The Irving family-owned Halifax Shipyard has received 2,000 applications since the contract was awarded on Oct. 19.

So far, the yard has hired 50 people, most of them electricians. But at peak, Irving spokeswoman Mary Keith says, 1,000 of the 2,700 people expected to be working at the shipyard should be in white-collar sectors like IT, engineering and finance.

Those numbers don’t surprise TD’s Gulati. She expects the impact of the shipyard contract to ripple through most sectors of the Nova Scotia economy. Under the federal government’s Industrial and Regional Benefits policy for procurement contracts, a substantial amount of the work must go to small- and medium-sized enterprises, which make up the lion’s share of the provincial economy.

She also thinks benefits will spread far beyond the boundaries of the Halifax region. The reason: some 70 per cent of Nova Scotia’s manufacturing companies are located outside Halifax. The same is true of roughly 40 per cent of the province’s research and development, engineering and technical consulting firms.

That’s music to the ears of Bert Lewis, business development manager of Mulgrave Machine Works Ltd. in Mulgrave.

“Our expectation is that there will be such a volume of work that one yard will not be able to handle it,” said Lewis, whose custom metal fabrication company hopes to design and fabricate pressure vessels and tanks for the shipyard contract.

“We are ready, willing and able to support that initiative and look forward to being part of it.”

---------------------------

If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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Where Have the Variable Rate Discounts Gone?

Mark Hurley, AMP - For anyone looking at a variable rate mortgage these days, you will notice the interest rate is not as attractive as it once was. Over the past few months, the banks have reduced their discount from prime rate minus .80% ( 2.20% ) to prime rate minus .10% ( 2.90% ). We may even see the variable rate go to prime plus, like we did during the credit crisis a few years ago.

So, does this mean we should all look at fixed rates now? Not necessarily. Everyone’s situation is different, but it should be a conversation you have with your Mortgage Broker or Banker. Will the variable rate discounts return like they did a few years ago after the financial crisis? No one can say for certain if they will, but in my opinion, if they do they will not be as deeply discounted as they once were.

Rob Carrick with the Globe and Mail explains why the variable rate discounts have all but disappeared:

Variable-rate mortgages are so over.

Go fixed rate if you’re arranging or renewing a mortgage, and think hard about the four-year term. If you take in all the recent developments in the mortgage market, this is the most logical strategy.

Variable-rate mortgages are being sold at the prime rate in many cases right now, which is 3 per cent. The traditional discount off prime? Snuffed out by the banks. They’ve decided they aren’t making enough money from discounted variable-rate mortgages, so goodbye discount for the most part. If you shop around, maybe you’ll get 0.2 of a point off prime.

Now for the fixed-rate alternative. Global economic uncertainty and sluggish growth mean you’ll pay in the area of 3 per cent for a four-year term. This explains why veteran mortgage broker Peter Majthenyi has pretty much given up on variable-rate mortgages.

“For 10 years, I’ve said don’t waste your money on a fixed-rate mortgage,” Mr. Majthenyi said. “Today, I just cannot in good conscience put a borrower into a 3-per-cent variable when for the same rate I can put them in a four-year fixed.”

Mr. Majthenyi calls this a “temporary break” from variable-rate mortgages. He’ll see what happens when today’s four-year terms expire. Meantime, he’s gone from writing about 98-per- cent variable-rate mortgages a year ago to virtually zero now.

Numbers from the Canadian Association of Accredited Mortgage Professionals (mortgage brokers, to put it in English) show that variable-rate mortgages had about one-third of the market as of this past spring, compared to 21 per cent four years ago. Interest in variable-rate mortgages was as strong as ever going into the summer as a result of an uncertain global economic outlook that was expected to keep interest rates low. Variable-rate mortgages could be had back then for 2.25 per cent, which represented a discount off prime of 0.75 of a point. Four- and five-year fixed-rate mortgages would have cost roughly 3 to 3.5 per cent, and that included a strong discount.

This was an ideal environment for variable-rate mortgages. The prime rate, used by lenders as a reference for many of their loans, was low and expected to stay that way for as long as it took for the global economic mess to resolve itself. The prognosis was for continued savings versus a fixed-rate mortgage.

Then came two developments that led to Mr. Majthenyi’s 180-degree turn against variable-rate mortgages. One, the cost of fixed-rate mortgages fell a little as a result of the stock market uproar in August and September. Here’s how that worked: Money flowed out of stocks and into bonds, which set the trend for mortgage rates. When a bond’s price rises, its yield falls. And so, as bond yields moved lower in the late summer, so did rates on fixed-term mortgages.

The second development was a decision by the big banks to clamp down on discounts given to customers going variable. “Bottom line, the banks have been stuck with too many variable-rate mortgages that are not profitable,” Mr. Majthenyi said. “How do they make them more profitable? They have to increase their profit on each mortgage.”

A few mortgage brokerage firms now advertise variable-rate mortgages at 2.8 per cent, or prime minus 0.2 of a point. But Mr. Majthenyi said many of the big lenders he deals with as a broker are now at prime. Looking ahead, he sees the market settling into prime plus or minus 0.2 for variable-rate mortgages.

You may still be able to save a token amount with a variable-rate mortgage over a fixed-rate mortgage with a term of four or five years. But it’s not hard to imagine the advantage of the variable rate disappearing in a year or so as the economy rallies. Then, you could be looking at a long period of rising rates.

So get over any ideas you have about variable-rate mortgages being cheap enough in the here and now to overlook the risk posed by future rate increases. In today’s market, variable-rate mortgages are yesterday’s news.

Finally, a quick word from Mr. Majthenyi for people who are in the middle of variable-rate mortgages with those juicy discounts of days gone by: Enjoy.

“You should hug and love those mortgages to the last possible moment because you’re probably not going to get them again.”

---------------------------

Post courtesy of Mark Hurley,AMP, 902-877-1646 or by e-mail at mark.hurley@migroup.ca. If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

---------------------------

What does the shipbuilding announcement mean for the housing market?

As everyone now knows, Halifax's Irving Shipbuilding has won the competition for the combat vessel procurement, and our region will stand to benefit from up to $25 Billion in spending related to that contract.

The project will likely have positive impacts in all of the City, Province and Region, with forecasts from the Provincial Government predicting thousands of jobs created, millions in tax revenues among other economic spinoffs

For residents of HRM, the project will mean growth in our housing market, and an influx of people to the HRM. There have already been public appeals from James Irving (Irving Shipbuilding) and others for Maritimers who had travelled West looking for work in the trades to come home. Whether it's workers returning to Halifax after having left or new migrants to the city, we will almost certainly see increased levels of net in-migration to HRM, and this trend should continue for much of the contract’s life (up to 30 years). The Chronicle Herald's Paul MacLeod writes today that Irving has said their shipyard workforce will increase over the life of the contract from 1100 to 2700, with an average workforce of 2400 to 2500 - this is in addition to the workforce that will inevitably be needed for shipyard renovations and expansion, and all the spinoff job creation in the supply chain, infrastructure, construction (residential and commercial) etc... So, we'll have more people and more skilled labour.

What does that mean for housing?  At first, not much. It will take at least a year for the "umbrella agreement" between Irving and the Federal Government to be negotiated, and until that's done little is really known about specifications required for either the ships or the yard itself. Once that hurdle has been cleared, construction and upgrades will commence at the yard and no doubt hiring will begin as the ramp-up to production begins. Initially, we will see more demand for housing all over HRM as trades people begin to move home or relocate here to be part of the project.  There is not one specific area of HRM likely to benefit more than others, as the increase in home buyers will likely be made up of people with varying backgrounds, levels of experience, and purchasing power. Over time, as the project unfolds, the first-time homebuyer segment should see larger increases in demand, which will put upward price pressure on the whole housing market in HRM. Expect to see an increase in housing starts for both single family and multi-family new home construction, and overall an increase in buying activity within the housing market as a whole. Throughout this, average prices should rise year after year on a more aggressive pace than what we've seen since 2007.

Although we'd all like this project to make an instant difference economically, it's important to realize that it will take time to ramp up production and spending, and then trickle down through the city's economy.  Although consumer confidence will undoubtedly see a boost right away, it will take time for demand effects to be seen within the HRM housing markets, and it may be up to three full years before real growth effects are felt by buyers and sellers. In the short term, resale sales should begin to rise first, followed later by an increase in new home construction.

This means that now is an excellent time to buy a home, either as a residence or for investment – given that we are poised to see increases in demand for most types of residential homes, as well as a gradual bump in average prices, now is the time to get in before these changes work their way through the markets. Take those factors into consideration along with historically-low mortgage rates and you have an almost unique opportunity to buy before what we all expect to be several good years in the HRM property market.

There's no doubt this announcement is a boon to our area, and will have a far-reaching impact on our whole region - the sum total of which has yet to be seen or quantified. We look forward to helping all of our clients navigate the coming changes smoothly and while taking best advantage of them, provide the best value possible and professional, expert service.

Some of the information contained in this blog post consists of forward-looking statements and should not be relied upon as professional advice. For more detailed analysis or help with specific questions, call The Bagogloo Team at 902-830-9006 or email info@halifaxmetrohomes.com.

 

The Bagogloo Team

October 20, 2011

Happy Hour with The Bagogloo Team - Friday June 24, 2011 at The Halifax Club

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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Local Event - Victoria Jubilee Bandstand Renovation Celebration

Mayor Peter Kelly and Members of Halifax Regional Council invite you to celebrate the historic renovation of the Victoria Jubilee bandstand in the Public Gardens.

 

Where: Halifax Public Gardens
When: Victoria Day - Monday, May 23, 2011

from 5:30 - 7:30 pm

Rain Date: Sunday, May 29, 2011 from 2:00 - 4:00 pm

For more information click here!

 

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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2011 Canada Winter Games - February 11-27, 2011

From February 11 – 27, 2011 Halifax will be hosting its first Canada Winter Games!

The Country’s best young athletes will be competing in more than 20 sports at a variety of venues around the city and nearby ski hills. Halifax will be playing host to numerous visitors, including athletes and their families to sports fans, media and VIPs. Join in the excitement! For more information please visit http://www.canadagames2011.ca/.

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If you have questions, or want advice on Buying or Selling a home, get in touch with The Bagogloo Team of RE/MAX nova by email at info@halifaxmetrohomes.com or call 902-830-9006.

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2010 Halifax Greek Festival - You're Invited!

The Bagogloo Team would like to offer our valued clients the opportunity to pick up some tickets to the opening ceremonies of the 2010 Halifax Greek Festival.

This event is sure to be a great time, with many performances, traditional Greek dishes, and even a chance to win a trip for two to Greece. The Greek Fest is taking place this year from June 10th -13th at St. Georges Greek Orthodox Church on Purcell's Cove Road. Get all the details and a full schedule on the Greek Fest website.

These tickets are available on a first come, first serve basis, so if you are interested in going to the Greek Fest, give us a call or drop by The Bagogloo Team office at 102 Chain Lake Drive Suite 1B.

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Photos From Happy Hour at the Halifax Club

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The Bagogloo Team on Facebook