Real Estate

Housing bubble to intensify and amortization periods staying the same: Canadian real estate news for May 13

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This week in real estate, investors are regretting buying preconstruction and young Canadians are airing their grievances with the housing market.Tara McMullen/Tara McMullen

Here are The Globe and Mail’s top housing and real estate stories this week, with the lowest mortgage rates available in Canada today, commentary from our mortgage expert and one home worth a look.

The housing bubble could shift into high gear

The housing bubble could see its comeback accelerate on Monday, writes Robert McLister. That’s when the Canadian Real Estate Association releases its April resale data, and national home sales and prices could shift into high gear.

National average home values had never had a 25-per-cent correction – until this year. That’s a problem for those planning to buy during this dip. So what do you do if you’re one of them and the boat has already left the dock? Read McLister’s weekly column to find out.

Canada’s mortgage insurer rejects idea of extending amortization period

Canada’s federal mortgage insurer is not in favour of extending the maximum amortization period for new mortgages. CMHC says extending amortization to cut down monthly payments would also stoke demand and spur higher home prices, reports Rachelle Younglai. Currently, borrowers have 25 years to pay down their mortgage if their down payment is less than 20 per cent.

This week’s mortgage rates: Waiting for rates to drop

Rate cut cycles are like floating down the Niagara River in a barrel. Everything’s nice and calm and then kerplop, you go off the edge, writes McLister.

Ontario woman moves to northern B.C. and buys two houses

This week on the Paycheque Project, The Globe and Mail spoke to Sarah, 39. She’s a civil servant with an annual salary of $48,000 who owes $164,199 in mortgages. She’s working with a financial planner and she’d like to retire before 68 with $1.3-million in savings.

Home of the week: A County Victorian

  • Home of the Week, 420 Bloomfield Main, Prince Edward County, Ont.Tara McMullen/Tara McMullen

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420 Bloomfield Main, Prince Edward County, Ont.

The house is 4,000 square feet, has four bedrooms and three bathrooms. The dining room features the original arched cast iron fireplace grate, with a refurbished gold cover.

Built in 1868, the house features three fireplaces. There’s a thematic flow from one room to the next, playing on the original details of the house but with an updated palette. The attention to each room meant that even the laundry room, where the most mundane of tasks is performed, is wrapped in floral wallpaper.

What do you think is the asking price for this house?

a. $1,154,000

b. $1,642,000

c. $1,865,000

d. $2,125,000

a. The asking price is $1,642,000.