London Free Press Article from March 7, 2009

Never been a better time to buy that home .
Combined with falling house prices, real estate experts say now is the time to buy
By JULIAN BELTRAME, THE CANADIAN PRESS
OTTAWA -- Jim Rawson says it's a great time to buy a house.
The regional manager of Invis mortgage brokerage firm in Toronto has been in the business since 1978 and has never seen interest rates, both variable and fixed, so low. Pair that with falling housing prices and it's a no-brainer.
"People have to have somewhere to live and whether you are paying for a mortgage or paying rent, you still have to be paying to live somewhere," Rawson explains.
But something is missing in the equation. As prices for most consumer goods, cars and homes decline -- in some cases plunge -- and the cost of borrowing falls, Canadians have been hesitant to buy.
The Bank of Canada did its part this week to lure consumers and businesses out of their fox hole, dropping the overnight rate down to an unheard of 0.5% -- virtually zero.

Canada's chartered banks lowered their prime rate to 2.5% on Tuesday, shortly after the central bank moved, and by the end of the week were lowering other lending rates.
TD Canada Trust is reducing several of its posted fixed-term mortgage rates today. TD's biggest decrease was with its two-year mortgage, which falls to 5.0% from 5.75%.
Scotiabank lopped nearly two percentage points off the advertised price for its 10-year mortgage, which fell to 5.25% from 7.15%, yesterday.
Canadians have slowed down borrowing and spending, most visibly in the auto sector, which saw sales volume crash by 28% in February.

Should I Buy or Should I Go

When do you think the best time to buy might be????
When the prices are rising ? When selection is limited because things move fast ? When Sellers are getting multiple offers ? When Realtors are phoning looking for something to sell ? When you have to decide immediately and you don't dare add conditions to your Offer in case of losing out ?

NOT LIKELY

How about when there are lots of choices on the market ? When the market is slower ? When ( unfortunately ) Sellers need to downsize for fear of not making their payments ? How about when Mortgage rates are the lowest in History

National and Local housing sales are down, new constuction is almost at a standstill and according to the Canadian Real Estate Association ( CREA )National MLS® home sales activity is expected to decline in 2009 before rebounding in 2010.

On top of this; part of the federal budget, Canada's "Economic Action Plan" includes a first-time home buyers' tax credit of 15% on closing costs (to a maximum of $5,000), which would be worth $750 off a buyer's federal tax bill. They have also increased the amount that first time buyers can withdraw from an RRSP to purchase a home from $20,000 to $25,000 for individuals, and from $40,000 to $50,000 for couples.

Keeping all this in mind the answer is staightforward.

NOW IS THE TIME TO BUY

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Grand Bend Winter Carnival Underway

The GRAND BEND
Winter Carnival is now on and its the last weekend
February 13 to 15.

Winter Carnival
this year has the theme

"Benguin Goes Hollywood "






Follow www.grandbendtourism.com/february.htm
for a full list of events and activities.






Pictured here are
2 of this years
Snow
Sculptures

Winter in Grand Bend

Winter Carnival will be held over 2 big weekends February 6 to 8 and February 13 to 15.

Winter Carnival

this year has the theme

"Benguin Goes Hollywood "

Follow www.grandbendtourism.com/february.htm

for a full list of events and activities.

Whats Happening in 09

There have been many thoughts and opinions published on what 2009 will be like, most are less than positive for most sectors of the economy. I naturally get asked about housing and mortgages.

In the resale market along Lake Huron the last two months of 2008 definitely slowed and while that normally happens there was a noticeable lack of activity this past year.

What then for 2009.

If you listen to or read our friends in the media you might be inclined to dig a hole and hide in it especially if it is US media and to a large extent Canadian media using negative headlines on US stories.

New house starts are definitely down, but down from record numbers since the start of 2000. Re-Sales are also down but again down from record numbers in this century.

Listings are up creating an adjustment to the marketplace resulting in a more balanced marketplace and turning from a Sellers market to a moderate Buyers market.

In our area along Lake Huron a large number of properties were bought in the last few years by Americans taking advantage of the huge difference in Buying power the Us dollar had, as much as 40% at one time. This surge drove Lakefront prices to more than double. This past year we've seen many of these properties come up for re-sale as many Americans facing uncertainty back home cash out. This has virtually eliminated further large increases in Lakefront values and in many cases lowered previous asking prices. The upsurge in Lakefront prices dragged other resort properties up and the drop in Lakefront prices is now moderating those prices as well. How much.... 5 to 10%. Will they continue to fall....... Not likely as there is still a demand for Vacation and Retirement properties and as long as there is water in Lake Huron there will be demand. Insofar as Lakefronts many may be waiting for further drops but remember they're not making any more of it so there is only a limited supply and prices will continue to reflect that.

Mortgages are at a 50 year low and there is money to lend. The factors that created the US mortgage crisis largely do not exist in Canada. Underwriting standards have been and are tougher and Canadians generally do not borrow or leverage their homes as much as Americans. The average Canadian homeowner has a 69% equity stake in their home The US homeowner 45%. So called "teaser" mortgages ie lower initial interest rates that reverted to much higher rates later, were not offered here. The percentage of Canadian mortgages in default is .3 % while its 4.5 % and rising in the US.

In short it is now a very good time to Buy. Inventories of resales are high offering a better selection than in the past, prices have moderated, and mortgage rates are unbelievably low and most of all don't forget properties on or with access to the Lake are limited in supply and they are not making any more.

Have A Safe and Happy Holiday Season