Pre-qualification and pre-approval are two different steps in the mortgage application process.

Pre-qualification is the initial step in the process, in which a lender will ask you for basic information about your income, debt, and assets. Based on this information, the lender will give you an estimate of how much you might be able to borrow. Pre-qualification is typically done online or over the phone and is a relatively quick process.

Pre-approval, on the other hand, is a more detailed process that involves submitting documentation to the lender to verify your income, assets, and creditworthiness. This typically involves filling out an application and providing documentation such as T-4's, tax returns, bank statements, and pay stubs. The lender will then review your application and credit history to determine how much they are willing to lend you and at what interest rate.

Pre-approval is more thorough than pre-qualification and provides a more accurate estimate of how much you can borrow. It also gives you a better idea of what your interest rate and monthly mortgage payment might be. Because pre-approval requires more documentation and a more detailed review by the lender, it typically takes longer than pre-qualification.

In summary, pre-qualification is a quick estimate of how much you might be able to borrow, while pre-approval is a more thorough process that provides a more accurate estimate of how much you can borrow and at what interest rate.

Reach out with your questions and if you need a mortgage broker, I can connect you to a like-minded individual.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

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Source: Pre-Approval vs Pre-Qualifying For a Mortgage | Greater Calgary Real Estate | Feb 24th, 2023 

I am sharing with you highlights of some of the hottest home design trends experts are seeing this year. I also offer information on the ways some homeowners are incorporating colour and natural materials to create a warm and relaxed luxe environment in their home.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

The Bank of Canada has decided to maintain the overnight rate target at 4.5%, the Bank Rate at 4.75%, and the deposit rate at 4.5%. The Bank is also continuing its policy of quantitative tightening. The global economic environment is consistent with the Bank's January Monetary Policy Report, with inflation decreasing due to lower energy prices and global growth continuing to slow.

In Canada, economic growth was flat in the fourth quarter of 2022, and there was a significant slowdown in inventory investment. Consumption, government spending, and net exports all increased, but household spending was impacted by restrictive monetary policy, and business investment weakened.

The labour market remains tight, with employment growth strong, but productivity has declined. Inflation decreased to 5.9% in January due to lower energy prices, but price increases for food and shelter remain high.

The Bank expects CPI inflation to come down to around 3% in the middle of this year. The Bank will continue to monitor economic developments and the impact of past interest rate increases, and is prepared to raise the policy rate further if necessary to restore inflation to the 2% target. The Bank is committed to achieving price stability for Canadians.

Reach out with your questions about how this impacts your home buying or selling decision. And if you need a mortgage broker, I can connect to you a like-minded individual.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠ 

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Inflation typically means that the overall cost of goods and services in an economy is increasing. In the real estate market, this can lead to higher home prices as the cost of building materials, labor, and other expenses associated with buying and selling homes increases.

Additionally, if inflation is coupled with a strong economy, demand for housing may also increase, further driving up prices. However, it's important to note that inflation alone does not determine real estate prices, it is a complex market that is influenced by various factors.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

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Source: What Does Inflation Mean For A Real Estate Market? | Greater Calgary Real Estate | Jan 27th, 2023

The real estate market has changed so much over the past 2 years and continues to do so! This month I am sharing details on some of the interesting trends we are seeing for 2023.

If you have any questions on these or any other real estate-related concerns, please feel free to reach out to me. I’ll be happy to help you out!

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠ 

The level of new listings in January fell to the lowest levels seen since the late 90s. Sales activity slowed compared to the high levels reported last year but remained consistent with long-term trends. Detached homes only comprised 47% of all sales.

With 2,451 units available in inventory, levels remain 43% lower than long-term trends for the month. Homes priced under $500,000 reported year over-year inventory declines of nearly 30% while inventory levels improved for homes prices above that level.

The benchmark price reached $520,900, 5% higher than last January, but still well below the May 2022 high of $546,000.

If you or someone you know have questions about how this may impact your home selling or buying decision, send me a message!

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

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Effective January 1, 2023

Anti Flipping Tax  - Profits from properties held for less than 12 months are fully taxed with certain exceptions for unexpected life events like death or divorce. This ensures investors pay their share and are an active role in lowering home prices. 

Speculation Tax – Effective May 7^th, 2022, The Goods and Services Tax/ Harmonized Sales Tax (GST/HST) will be applied to all assignment sales of new construction or substantially renovated residential housing. Note, an assignment sale is when a property is resold before it’s been built or lived in.

Vacant Home Tax – Foreign-owned underused housing will have a 1% annual vacant homes tax to help make more homes available, the market more affordable and to ensure non-resident owners of Canadian housing pay their share. 

Foreign Buyers Ban – Foreign purchasing will be halted for 2 years effective January 1^st, 2023 ensuring housing is used as Canadian homes and not as financial assets for foreign investors.

Benefits for Buyers in 2023 - The First-Time Home Buyer’s Tax Credit doubled to $1,500 in direct support to home buyers to offset the increasing costing costs involved in the home buying process. January 1^st, 2023 saw the introduction of a refundable Multigeneration Home Renovation Tax Credit which provides $7,500 to support the construction of secondary suites for senior family members or other adults with needs like disability.  

Tax-Free First Home Savings Account (FHSA) If you contribute $8,000 per year to buy a home, it’s the equivalent of the government offering you a non-taxable gift. Unlike the HBP, you don’t need to pay back the amount, even if the withdrawals are not used on a down payment for a home. However, those withdrawals will be taxable.

Reach out with any questions! It would be a privilege to serve as your Realtor.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

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Source: Housing Taxes and Benefits for 2023 | Greater Calgary Real Estate | November 26th, 2022

“Elevated lending rates are expected to weigh on sales in 2023, bringing levels down from the record-high in 2022 but with forecasted sales of 25,921, levels are still expected to be higher than the activity reported before the pandemic. Recent growth in migration and employment is expected to help offset the impact of higher lending rates, keeping annual sales activity higher than levels achieved throughout the 2015 to 2019 period. The growth in new listings in 2022 was not enough to offset the gains in sales and supply levels have remained low, especially for lower-priced product. The higher lending rates are also expected to weigh on listings growth in 2023 as it has become more challenging for a move up buyer. While improved starts are expected to help support supply growth, thanks to the strong migration levels, supply levels are not expected to report significant gains.

The low starting point and limited upward pressure on supply in 2023 is expected to prevent any significant downward pressure on prices as demand normalizes. However, conditions are expected to vary depending on price range and property type. Higher-priced homes are expected to see some downward price pressure as that segment of the market is not experiencing the same supply constraints.Meanwhile, supply declines relative to sales for lower priced properties are expected to continue to support modest price growth. Declines in the upper end of the market are expected to offset gains in the lower end of the market as total residential prices in Calgary are expected to stabilize in 2023.”

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Read More | CREB Forecast Calgary & Region Yearly Outlook Report

The real estate market can be significantly impacted by interest rates. When they’re low, it’s more affordable to borrow money to purchase a home which increases the demand and raises prices. When interest rates are high, it’s more difficult and less affordable to purchase a home which decreases demand and lowers prices.

Any change in interest rates can impact existing mortgage and the value of homes. They are crucial in understanding the overall health of the real estate market. If you have any questions about buying or selling, connect anytime! It would be a privilege to serve as your Realtor.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

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Source: How Do Interest Rates Affect Our Real Estate Market | Greater Calgary Real Estate | Jan 27^th, 2023

"Across Canada, monthly average housing prices have tumbled almost 20% from their peak levels last year as several negative forces have touched down, including a series of interest rate hikes and a slowing economy. During the same period, housing prices in the Prairies dipped by an average of 6%. In Alberta, prices will decline 5.6% - averaging about $418,000."

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca

Read More | Outperforming The Market-Home Prices Faring Better in Prairies | Calgary Herald

The target for the overnight rate increased to 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%. Quantitative tightening will continue. Inflation remains high and broadly based globally, but is trending down in several countries, reflecting lower energy prices and improvements to supply chains.

In the US and Europe, slowing economies are proving to be more resilient than at the time of the Bank’s October Monetary Policy Report (MPR). China’s lifting of COVID-19 restrictions revised the growth forecast and poses an upside risk to commodity prices. Russia’s war on Ukraine is still a source of uncertainty and financial conditions remain restrictive. The Canadian dollar has been relatively stable against the US dollar.

It’s estimated that the global economy grew about 3.5% in 2022, but will slow to about 2% in 2023 and then grow to 2.5% in 2024. Economic growth in Canada is stronger and the economy remains in excess demand. The labour market is tight as the unemployment rate is near historic lows. Businesses, however, are reporting ongoing difficulty finding workers.

There’s evidence that the restrictive monetary policy is slowing activity, especially household spending. Services and business investments are expected too slow in addition to weaker foreign demand helping to allow supply to catch up with demand.

It’s estimated that Canada’s economy grew by 3.6% in 2022 but is expected to stall through to the middle of 2023, and then picking up again later in the year. GDP is expected to grow 1% in 2023 and 2% in 2024. Inflation has declined from 8.1% in June to 6.3% in December, reflecting lower gasoline prices and durable goods.

Canadians are still feeling the hardship of high inflation in their essential household expenses, with persistent price increases for food and shelter. Short-term inflation is expected to remain elevated but inflation is projected to come down significantly this year.

Governing Council decided to increase the policy interest rate by a further 25 basis points. Governing Council is prepared to increase the policy rate further if needed to return inflation to the 2% target, and remains resolute in its commitment to restoring price stability for Canadians.

Reach out with your questions in regards to how this impacts your home buying or selling decision.

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

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Curious about what's happening in the city this weekend? Here are a few activities and events worth taking note of!⁠

1. Banff Mountain Film Festival World Tour – Calgary

When: January 19th-21st, 2023
Where: Bella Concert Hall,, Calgary, AB
Cost: $26.50-$29.50

Ignite your passion for adventure, action, and travel with exhilarating big-screen stories. Journey to exotic locations, paddle the wildest waters and climb the highest peaks. Be taken away to the most captivating places on earth.

2. Nando’s National Hot Sauce Day

When: January 22nd, 2023
Where: Nando's Restaurants, Canada
Cost: FREE

Nando’s is treating guests to a FREE ¼ chicken at any Nando’s restaurant. All guests have to do is trade in any empty Nando’s PERi-PERi 250ml sauce bottle at any Nando’s restaurant. Don’t have a bottle of sauce on hand? Nando’s PERi-PERi can be bought at Loblaws, Wal-Mart, Metro, Sobeys, Save-On Foods and their affiliated chains.

3. Calgary Wedding Fair

When: January 22nd, 2023
Where: BMO Centre, Roundup Way SE, Calgary, AB
Cost: $30-$35

Bringing you the latest trends and gives you the opportunity of connecting with the service providers you need to create your special day.

Learn More | To Do Canada

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Photo by @dailyhivecalgary

This month I am sharing a list of some of the more common terms you may hear regarding real estate transactions. If you have any questions on these or any other real estate-related concerns, please feel free to reach out to me. I’ll be happy to help you out!

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

Curious about what's happening in the city this weekend? Here are a few activities and events worth taking note of!⁠

1. Harlem Globetrotters

When: Saturday, January 7th, 2023
Where: Scotiabank Saddledome, 555 Saddledome Rise SE, Calgary, AB
Cost: $18-$388 + fees

From trick shots to long shots to how-did-they-do-that shots, get ready for the Harlem Globetrotters to put up…basketball shots! Stay on the lookout as the Globetrotters are taking even more incredible shots from around the arena – because shooters shoot!

2. Wilder Institute/Calgary Zoo – Snow Globes

When: NOW until Sunday, January 8th, 2023
Where: Wilder Institute/Calgary Zoo, 210 St. George's Drive NE, Calgary, AB
Cost: $150-$450

Rentable Snow Globes to make your next romantic date night, girls night out, family celebration or other occasion extra special! Enjoy your private oasis surrounded by twinkling lights at this one-of-a-kind experience. Your package includes admission to ZOOLIGHTS along with your selected food and beverage package.

3. Winsport Tube Park

When: NOW until March 2023
Where: Winsport Tube Park, 88 Canada Olympic Road SW, Calgary, AB
Cost: $16-$27

The perfect activity for a day with family and friends. WinSport’s Tube Park is one of the fastest of its kind in Western Canada.

Learn More | To Do Canada

Reposted with @regram
Photo by @dailyhivecalgary 

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December sales eased, but slowing sales over the 2nd half of 2022 were not enough to offset earlier gains as sales reached a record high of 29,672 units in 2022.The pullback in sales was also met with pullback in new listings, causing further declines in inventory levels. As of December, there were 2,214 units available, making it the lowest level of inventory reported for December in over a decade.

Benchmark prices eased to $518,800, down nearly 5% from the peak price in May but almost 8% higher than last December. While prices have trended down annually, they remain over 12% higher than last year’s levels. Overall, the housing market in 2022 generally outperformed expectations both in terms of sales and price growth.

If you or someone you know have questions about how this may impact your home selling or buying decision, send me a message!⁠

Jason Streich⁠
Greater Calgary Real Estate⁠
403 807 2204⁠
jstriech@shaw.ca⁠

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