Weekly stats update courtesy of the VREB.
|Wk 1||Wk 2||Wk 3||Wk 4|
|Sales to New Listings||102%||111%||
|Months of Inventory||
Wow, I don’t think I’ve ever seen a 111% sales to list ratio. Big drop in inventory as well which is the usual occurrence in December but still we are getting to some scary low numbers here. Will we break 1500 listings at the end of the month? Last year we dropped 114 listings in the last two weeks of December so it is definitely possible! Keep in mind at 1500 total listings that is only about 1000 residential properties for sale.
In the last post on the first time home buyers program, first time buyer Auzz wondered about whether to take advantage of it. I said it is a no brainer to take the free money, but since then local broker Mike Grace has provided some more info that makes the program questionable for even the first timers it is meant to help.
The problem is that the government’s funds are treated as coming from “non-traditional sources” by insurers like CMHC and Genworth. Programs involving non-traditional down payments are limited to 5 to 10% down, and require a higher premium.
According to Mike, if you as a first time buyer have 10% down, it is better to just ignore Christy’s 5% loan and put your own money down. Any advantages to interest free money would be outweighed by the higher cost of the higher insurance premium rate – 3.85% using the government’s cash, to 2.4% making your own 10% downpayment (and it’s actually even more complicated/worse than that).
So who’s left that will benefit from this? Maybe those that can only scrape together 2.5% of the purchase price? Seems pretty clear we don’t want people with less than $20,000 buying three quarters of a million dollar properties.