Al and Peggy's Corner: Our Roller Coaster Real Estate Market, We're Here For The Full Ride

Our Roller Coaster Real Estate Market, We're Here For The Full Ride

Our Roller Coaster Real Estate Market, We're Here For The Full Ride

Don't get us started on roller coaster rides.
We live only a couple of miles from Canada's Wonderland which has two of the largest and fastest roller coasters in the world. Coming from a family of roller coaster lovers, we have spent many hours there some of us enjoying the thrills of the rides, others holding on tight with eyes squeezed shut.

When it comes to the real estate market however, we want our feet planted firmly on the ground,
but that isn't always the case.

This year, we were clipping along at a great real estate pace.
Listings were popping up, offers were coming in at a great rate and a few properties were lucky to receive multiple offers if they offered something special or were priced attractively.  New construction across the GTA (Greater Toronto Area) was brisk with more new sites opening regularly, heck we weren't sure which were sprouting up faster, the dandelions or the condominiums in Toronto.   

Apparently the powers that be were watching our real estate roller coaster car and decided it was moving up an incline.
In late summer they made changes to our mortgage qualifications, back to the way they used to be. Lowering the amortization rate from 30 years to 25 years and equity loans now have a maximum of 80 per cent of a property's value.

These are not big changes, in fact by changing the amortization rate it increases a mortgage payment by a small amount but saves homeowners a bundle in interest charges by paying off the mortgage quicker.
For example, take a $300,000 mortgage with a 5 year term at the current interest rate of 3.04% and current 25 year amortization this would equal a monthly mortgage payment of $1,426.00. With the previous mortgage requirements if you had a 30 year amortization with the same mortgage the payments it would be $1,268.00, a difference of $158.00.

This is a small change in the scope of things however the media coverage over these changes was prominent everywhere and perception as we all know is huge.
Quickly our real estate roller coaster car went over the peak and as we headed down the track the market started to cool. Recently our Toronto Real Estate Board reported that even though properties are taking a bit longer to sell, they are selling for higher prices, maybe we're headed up the track again. 

We don't focus on the real estate roller coaster rides because we know they are ever changing.
We focus on getting our clients the best for their property when selling or their money if buying.

If you want to talk to us about roller coaster rides
, let's talk about Canada's Wonderland's Behemoth roller coaster, it climbs 200 ft. in the air and goes speeds of 77 miles per hour. Jump on board with our son and grandson and enjoy this ride, this one's  priceless.     

Our Roller Coaster Real Estate Market, We're Here For The Full Ride



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Al and Peggy CunninghamAl and Peggy Cunningham, Brokers

RE/MAX West Realty Inc., Brokerage
10473 Islington Ave., Kleinburg, ON  L0J1C0


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Comment balloon 13 commentsAl & Peggy Cunningham, Brokers • October 11 2012 06:32AM


Wishing you the best of luck in this ActiveRain contest. I think we are ALL glad to see the market turning.

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) over 7 years ago

Al and Peggy, Yes the market it turning, it would be nice if it were more like a train ride through small mountains as opposed to the roller coaster ride you posted!  What a great video!  Did you take that?


Posted by Gloria Todor, & Doug Durren (484) 431-3686 in SE PA (Century 21 Absolute Realty ) over 7 years ago

Al/Peggy: You have a smart business model.  Do your best for your buyer and seller clients regardless of the market and things find a way of working themselves out.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) over 7 years ago

YES, we are Barbara-Jo! Love being busy.

We are all for a smooth comfy train ride Gloria and Doug! No we didn't take that roller coaster video our son did though!
We couldn't have handle THAT ride!

They do Anita. We have been through so many markets and realize we just have to plow through them all! ;)

Posted by Al & Peggy Cunningham, Brokers, Our Family Wants To Help Your Family! (RE/MAX West Realty Inc., Brokerage) over 7 years ago
Al and Peggy,

Those of us who are in it for the long haul have learned to deal with the roller coaster market.

Posted by Richard Iarossi, Crofton MD Real Estate, Annapolis MD Real Estate (Coldwell Banker Residential Brokerage) over 7 years ago

We have been blessed in that prices do not seem to go crazy high.... or drop WAY low. STEADY is good for this country gal! :)

Posted by Joni Bailey, Your Huntsville / Lake Livingston Area REALTOR® (101 Main St. Realty) over 7 years ago

Al and Peggy, good for you for concentrating on the positives of you business, and not the external ups and downs that non of us can control.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 7 years ago

Nothing new right Rich?

Steady is always best Joni, just doesn't seem to stay that way!

That's right George we can't fight the forces that be, so just go with the flow, as long as there not tidal waves!

Posted by Al & Peggy Cunningham, Brokers, Our Family Wants To Help Your Family! (RE/MAX West Realty Inc., Brokerage) over 7 years ago

OK, I hate those things. I hate them to ride them, and I am not liking the real estate one either.

I rode one once.... never again. I rode the Great American Scream Machine at 6 Flags over Georgia. I tried to sneak out of line, the little stick man on the TV ratted me out. One of my friends said I should ride with her, she is not afraid, and the front car was the easiest to take. Yeah.. she grabbed on to me for dear life and screamed, cried and blubbered the whole time. When we got off (I crawled off, my legs were like spagetti) they were handing out badges, the red badge of courage. When it came to me, THEY RAN OUT! I rode that stinkin thing and had NOTHING to show for it...figures... LOL.

You did survive better in Canada than we did, and I hope you get over this last little hiccup and move back on your merry way. But not on the one in the video!!!!

Posted by Andrea Swiedler, Realtor, Southern Litchfield County CT (Berkshire Hathaway HomeServices New England Properties) over 7 years ago

Roller coaster rides are fun. Not very far from us we have one of the oldest wooden roller coasters in the country still in operation. It is strange to see it. As for the real estate ride, there's nothing like a government tweak to put the brakes on the ride, I mean the market!

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) over 7 years ago

Al & Peggy - I liked what you said about not being concerned about the roller coaster, just finding the best property for the client. Love it!

Posted by Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366, General Contractor, Dry Rot and Water Damage (Dry Rot and Water Damage Mobile - 916-765-5366) over 7 years ago

Oh you make us laugh Andrea!! We will have to find you a red badge of courage because it sounds like you deserved it!

LOL You are absolutely right Ed. It's not even so much the tweak, but the media buzz that followed.

Thanks Tom, we always have to keep on working no matter what the climate right? Even if its the market climate.

Posted by Al & Peggy Cunningham, Brokers, Our Family Wants To Help Your Family! (RE/MAX West Realty Inc., Brokerage) over 7 years ago

Our market is steady, and has been for much of the year, Al and Peggy...

as for this ride, not in this lifetime ;-)

Posted by Chris Smith, South Simcoe, Caledon, King, Orangeville Real Esta (Re/Max Chay Realty Inc., Brokerage) over 7 years ago