Daily Market Update

Could ‘try before you buy’ be the way ahead for real estate?... Co-housing project struggles with sales but do people understand what they are?... And mortgages become easier to secure in the US…

Daily Market Update
‘Try before you buy’ real estate
Most of us wouldn’t buy a new car without taking it for a test drive first but that’s not usually an option with real estate, until now. A realtor called The Garage Sale Luxury Auction House is giving potential purchasers of luxury property the chance to live in the property before making a decision on whether it’s the home for them. The concept involves a live-in viewing and auction, where interested parties get to stay in the home, with a host, to get an authentic idea of the house and its surroundings. Potential purchasers will need a large security deposit ($150,000) and a letter from their bank showing they can afford the price they are bidding. If you’ve ever moved into a new home only to find out that your new neighbour has an insomniac cockerel, you’ll see the benefits of this innovative viewing process. Read the full story.

Co-housing project struggles to make sales
A co-housing development in Regina is reporting weaker than hoped sales of their units. The Prairie Spruce Commons Cohousing project was hoping to break ground next month but will now be delayed until next spring. Negotiations with the contractor have been part of the delay although sales have been slower than expected too. Less than half of the 27 units have been sold; 85 per cent was the target before beginning construction. Co-housing developments have worked well elsewhere and project managers are optimistic that this project will gain momentum but believe that key to the success will be helping people to understand the idea of co-housing communities. Read the full story.

US housing set for boost from easier credit lines
Banks have increased lending in the US and the conditions for borrowing have been less strict. The US Federal Reserve said yesterday that making mortgages easier to secure was good news for the housing market, which has struggled south of the border despite generally improving economic conditions. Read the full story.