IF you're in the market for a new home this spring, local realtor Bo Kauffman has an important piece of advice.
"If you are seriously looking for a house in Winnipeg, turn off CNN," says Kauffmann, a realtor with Re/Max Performance Realty.
He says Winnipeg makes up only two per cent of the national housing market, a small fraction of the big real estate picture. While the real estate market may be plummeting in other cities across Canada, and particularly in the U.S., Winnipeg housing values are holding their own.
"The real estate market is very local," Kauffman says. "It's as tough as ever to get a good house in Winnipeg."
Kauffman shared his advice with potential homebuyers at a seminar last week that included the views of Lewis Penner of Crosstown Civic Credit Union and David Vincent of the Tacium Vincent Orlikow law office.
This is the third year that the trio has put on the free seminar to give first-time buyers and others who haven't been in the market for awhile an education on market conditions and information on what to expect in the home-buying process. Combined, the realtor, lender and lawyer provide information on all angles of buying a house.
"In real estate, buyers have the same questions over and over again," Kauffmann says. "My best friend is an educated buyer."
The Winnipeg market is as hot as ever, Kauffmann tells clients, so don't expect discount deals. Just last week, Kauffmann sold a house in St. Norbert for well over the asking price. Listed at $159,900, there were 26 showings and seven offers. The house sold for $180,000, with the four top offers all within the same price range.
"Winnipeg is certainly not like other markets," he notes.
If you are looking for a home priced higher than $350,000, Kauffmann says there are good houses going for good prices. The $150,000-to-$200,000 market that is the most competitive.
"The starter homes are really driving the Winnipeg market now," he points out.
Part of that is because interest rates are so low.
"Now is the lowest it has ever been in my nine years in the business," Penner says. "I have never seen variable rates this low."
Whatever type of house you are looking for, Penner stresses the importance of being pre-approved for a mortgage.
"That way, when you go to make an offer, you know what budget you can afford," he explains.
Penner stresses there are other costs to keep in mind that can make a difference in your budget -- taxes, interest and heating costs all add up.
There's also the land-transfer tax to consider, adds Vincent, who specializes in real estate law.
"The biggest single factor changing legal costs is the land-transfer tax," he explains. For a house that sells for $200,000, the land-transfer tax is $1,700. It goes up at two per cent of the value after that. That money is outside the selling price or lawyer's fees and it's due the day you take possession of the new house.
