HousePrices posts

Each month WalletPop searches the MLS listings for reasonably priced, attractive homes across the country. We've limited our picks to homes selling for less than $400,000, a bit more than the national average, which clocked in at $354,754 in January 2013, according to CREA, down 2% from a year earlier. And many of the properties we highlight this month are much less than that.

With low mortgage rates and a softening market there's no better time to go house hunting and lock in at a low rate. Click on the images below to launch the slideshow, and let us know whether you like our picks for this month.

The coming year will bring some pretty important changes to the Canadian financial ecosystem. Every Canadian should be aware of the following five shifts that will impact both the national and household economies.

House Prices
So the bubble may not be popping but the housing market is definitely slowing down. The Canadian Real Estate Association recently released its latest sales numbers that show a 1.4 per cent decline in home sales for late 2012. One factor may be recent tinkering in the mortgage market such as shortening amortization periods. This trend is particularly important because many people -- particularly young families and young professionals -- have tied their financial ships to their houses. If homes aren't moving, this impacts their value and creates a buyer's market. For families hoping to cash in on a hot market -- whether by selling or tapping into their equity -- 2013 may not be the time.

If you're in the market for a new house or simply looking to
renew your existing mortgage, I'm sure you've noticed the "Mortgage War" being waged by most of Canada's big banks. RBC, TD, Scotiabank and BMO have been offering long term, fixed rate mortgages for 2.99 per cent. This is among the lowest fixed rate mortgages you're likely ever to see.

On the one hand, this has been a bit of a strange move from an industry that has expressed worries in the past about mortgage debt in Canada. On the other hand, now might be a terrific opportunity for first-time buyers to get into the market. So, what should you be conscious of if you're thinking about a rock-bottom mortgage rate?

Every month WalletPop searches the MLS listings for attractive homes at a reasonable cost. We've limited our picks to homes selling for less than $400K for a survey of homes that most people can afford. The average home price was $360,396 in November across Canada, and many of the properties we highlight are even less than that. With mortgage rates at record lows, there's no better time to go house hunting and lock in at a low rate.

Have a look and see if anything surprises you this month.

CLICK ON PHOTO TO LAUNCH GALLERY

The steady decline in mortgage rates combined with slow house price appreciation has made the past few months some of the most affordable in recent years to buy a home in Canada. In fact, a report by the Royal Bank of Canada shows that housing affordability improved for a second straight quarter at the end of 2010.

However, as the Canadian economy continues to improve, the experts say that these attractive buying conditions will not last.

Retirement is not normally top of mind for Canadians aged between 25 and 30, but a new report has found that as many as 44% of future retirees in this age group will not have enough money to adequately fund their lifestyles.

The study, conducted by independent social policy and economics think tank C.D. Howe Institute, says that Canadian retirees risk a significant drop in living standards if current trends and behaviours continue. At present, only 16% of retirees find themselves in circumstances that require them to significantly reduce how much they spend once retired.

C.D. Howe says Canada's retirement system has performed relatively well over the past few decades. However, projections for the future using data such as income from registered pension plans (RPPs), registered retirement savings plans (RRSPs), individual savings and home equity, has revealed a disturbing trend. More than two in five retirees, 40 years from now, will experience a significant drop in living standards.

Home buyers are faced with a tough decision when looking for a mortgage: take a risk on a variable mortgage or choose the security of a fixed-rate?

Variable rate mortgages gained popularity during the financial crisis as the Bank of Canada slashed the benchmark interest rate to a record low 0.5 per cent, causing variable rate mortgage costs to tumble with it. But now that the central bank is hiking rates, even if the key rate is only at 0.75 per cent, it appears fixed rate products are making a comeback.

An article in the Financial Post points out that while variable rates are still low, fixed-rate mortgages are looking quite cheap. Jitters around the globe about economic stability and a second bout of recession have caused investors to pile their money back into government treasuries, which means the yields on the bonds fall. Banks use these yields to determine fixed-rate interest rates, and as a result, fixed-rate mortgage costs are coming down. But just how low are they?

The Canadian housing market continues to buck the trend. When the economy was in the midst of recession, home sales astounded economists by soaring. But now as we leave winter behind and enter the usually active spring period, home sales have been slowing. Despite this, house prices continue to rise, although the signs point to slower growth in the coming months.

Home sales via the Multiple Listing Service fell almost 3% in April from the previous month and caused sales to be down by almost 7% since their peak in December, figures released Monday by the Canadian Real Estate Association show. Even so, compared to April last year when no one around the world really knew what was going on, home sales are up a healthy 20%.

Statistics like these give a good overview of the general direction of Canada's housing market, but conditions can vary dramatically in different neighbourhoods and regions. CREA says more than half of the decline in sales since the start of the year has been in British Columbia, while activity in Ontario and Québec remains at or near record levels. The activity in these markets has helped keep overall demand for new homes reasonably strong, meaning house prices are still going up.

Forget the recession; one look at the housing market and it's like we never had one. House prices are on the rise and they're not going to get cheaper anytime soon as buyers pile in to take advantage of low interest rates.

A recent report by Royal Bank of Canada found that buying a house became slightly less affordable at the end of 2009 and that was entirely due to higher prices because the other things that affect affordability -- mortgage costs and personal income -- were better.

The overall slip in affordability wasn't huge, we're talking a 0.3% rise in the index that tracks the affordability of a standard two-storey home, but economists expect costs to get worse as the year unfolds.

So what should you do if you're planning on buying a home?