So Rosacea Court is not doing the Christmas lights mayhem this year - too bad - our loss.
Well, they still wrapped some trees with about 15,000 lights but there's no sound show and large scale extravaganza as in previous years. Here's their site.
So that means that the houses previously in second place, just got promoted. And having seen them just the other night, boy, they deserve it on their own merits!
Best Display!
Check out the houses on Ilona Park, in Pickering. Here's a map.
Here's what the Star says about them.
I have to go back with my DSLR and take some good pictures - it's worth the re-visit!
Also streets worth seeing nearby
Map: Eyer Drive
Map: Vicki Drive
Got any other locations worth seeing?
Post them here and I'd be happy to add them to the list.
Merry Christmas!
Tuesday, 22 December 2009
Monday, 21 December 2009
Why you should consider buying and/or selling early in 2010
Often times, you'll heard Realtors say that "now is the best time to buy/sell real estate". And that's whether you asked them 5 years ago or 5 minutes ago.
But I believe that this time, I can make a stronger case for you, rather than just the age-old reason "because no one can predict the future and the market might be worse later than it is now". Who's got that crystal ball, right?
And now you're asking what makes me think that *this* time is any different?
Well, a number of reasons, actually. A recent new law bringing the HST into effect in mid 2010 plus some recent articles in the media have prompted me to advise my clients, past clients and prospects that this next 3-6 months would be worthwhile in terms of putting more money in their pockets.
Reason #1 - HST is definitely coming - There's no longer a chance that it will go away. Despite pressure against the government from a number of sources, including the real estate segment, it was just recently passed into law and comes into effect in mid-2010 (June?).
(Note: This is not a condemnation nor endorsement of the HST. It's an acknowledgement that it's now on the way and here's how you, the consumer, can benefit in the short term.)
How does it affect the real estate segment? Well, it means that in addition to GST, now PST will also be tacked on to real estate costs such as Realtor commissions, home inspections, legal fees, and all those other trades/skills that people use, either in a real estate transaction or before or after it, including cleaning services, painters, gardeners, moving companies, handymen services etc. - any of these kinds of services that you could have used either to spruce up your house before selling or just after buying - they're all going to cost you 8% more with HST.
Combined, it adds up to almost a couple thousand dollars just in the additional taxes coming out of your pocket.
Selling a $400,000 house is going to cost you about an extra $1,700 in PST charges alone!
Wouldn't you rather save that $1,700 and use it to hire a painter to paint your new house? You can get quite a nice patio set at Costco in that price range.
And you can, just by selling your house before that HST kicks in!
"But Steve...", you start to say, "...we've got more than 5% down and don't need a 35-year amortization, so it doesn't really apply to us". Well, maybe not to you as a buyer - but if it's going to dry up or reduce the number of buyers out there competing to buy YOUR house, doesn't that matter to you?
Of course it does!
If the government were planning to stifle the buyers' market out there, and reduce the competition for your house (which could translate into you getting less money for your house), wouldn't you want to get the best bucks for your house and sell before the government steps in?
I know I sure would!
I want to help you get the best possible price for your house and that's exactly why I'm advising that listing it as soon as possible in the new year is in your best interests (rather than delaying it). It's more money in your pocket in several ways
But I believe that this time, I can make a stronger case for you, rather than just the age-old reason "because no one can predict the future and the market might be worse later than it is now". Who's got that crystal ball, right?
And now you're asking what makes me think that *this* time is any different?
Well, a number of reasons, actually. A recent new law bringing the HST into effect in mid 2010 plus some recent articles in the media have prompted me to advise my clients, past clients and prospects that this next 3-6 months would be worthwhile in terms of putting more money in their pockets.
Reason #1 - HST is definitely coming - There's no longer a chance that it will go away. Despite pressure against the government from a number of sources, including the real estate segment, it was just recently passed into law and comes into effect in mid-2010 (June?).
(Note: This is not a condemnation nor endorsement of the HST. It's an acknowledgement that it's now on the way and here's how you, the consumer, can benefit in the short term.)
How does it affect the real estate segment? Well, it means that in addition to GST, now PST will also be tacked on to real estate costs such as Realtor commissions, home inspections, legal fees, and all those other trades/skills that people use, either in a real estate transaction or before or after it, including cleaning services, painters, gardeners, moving companies, handymen services etc. - any of these kinds of services that you could have used either to spruce up your house before selling or just after buying - they're all going to cost you 8% more with HST.
Combined, it adds up to almost a couple thousand dollars just in the additional taxes coming out of your pocket.
Selling a $400,000 house is going to cost you about an extra $1,700 in PST charges alone!
Wouldn't you rather save that $1,700 and use it to hire a painter to paint your new house? You can get quite a nice patio set at Costco in that price range.
And you can, just by selling your house before that HST kicks in!
Reason #2 - the feds plan to tighten the money supply!
It was in today's media- The Star
- The Globe (1) - observers warn of the risks
- The National Post - Flaherty ready to deflate any bubble
"But Steve...", you start to say, "...we've got more than 5% down and don't need a 35-year amortization, so it doesn't really apply to us". Well, maybe not to you as a buyer - but if it's going to dry up or reduce the number of buyers out there competing to buy YOUR house, doesn't that matter to you?
Of course it does!
If the government were planning to stifle the buyers' market out there, and reduce the competition for your house (which could translate into you getting less money for your house), wouldn't you want to get the best bucks for your house and sell before the government steps in?
I know I sure would!
I want to help you get the best possible price for your house and that's exactly why I'm advising that listing it as soon as possible in the new year is in your best interests (rather than delaying it). It's more money in your pocket in several ways
- Reducing the amount you pay in taxes by selling/buying before mid-2010 and
- Selling before the government tightens or even kills the buyers' market through mortgage and interest changes
- Capitalizing on the surge of available buyers, who themselves, are likely sellers and want to save a few bucks, too!
Wednesday, 9 December 2009
Real Estate articles
Here are some links to recent real estate articles
3 bedroom condos - ha! About as rare as a Maple Leaf win
2 key factors to consider in your real estate purchase - future price of gas and rising interest rates
Reno mistakes - top 5 you can make....or not
Jump in, jump out....or jump up to something more?
What they got? Recent sales around the GTA
Disclosure - good for all parties!
3 bedroom condos - ha! About as rare as a Maple Leaf win
2 key factors to consider in your real estate purchase - future price of gas and rising interest rates
Reno mistakes - top 5 you can make....or not
Jump in, jump out....or jump up to something more?
What they got? Recent sales around the GTA
Disclosure - good for all parties!
Friday, 13 November 2009
Looking for value for your real estate dollar? It's in Pickering!
A recent study by Coldwell Banker Terrequity suggests that Pickering offers the best bang for the buck in terms of GTA real estate value. It reports that a comparable 2,200 square foot home costs about 1/3 the price of what it does in central Toronto. For the full article in the Star, click here.
Beware the coming HST
As TREB president Tom Lebour writes in his column in the Star, the forthcoming harmonization of PST and GST taxes into the HST is going to add significantly to cost of purchasing a home, beyond just the purchase price itself. Read the full article here.
That may (somewhat) help explain the higher than average number of sales as we heading into what has historically been the slow period of real estate sales (Christmas). That's likely a factor, along with historically low interest rates and a significantly lower than normal amount of homes on the market.
That may (somewhat) help explain the higher than average number of sales as we heading into what has historically been the slow period of real estate sales (Christmas). That's likely a factor, along with historically low interest rates and a significantly lower than normal amount of homes on the market.
Monday, 9 November 2009
Market Update: Focus on Whitby
From time to time, I plan to do a sale activity focus on a particular market segment and in this instance, I'll cover Whitby.
In October, 84 of 128 listed detached homes were sold (65%) at an average price of $342,137 [Note: 65% and higher indicates a Sellers' Market]
To compare, in October 2008, 60 of 312 homes were sold (19%) at an average price of $327,104 [Note: Less than 45% indicates a Buyer's Market]
The average Days On Market (DOM)
So several things immediately come to light
To compare, let look at condo townhomes.
In 2009, 11 of 19 (58%) sold for an average $206,355
In 2008, 15 of 31 (48%) sold for an average $206,477
So prices for condo townhomes in Whitby haven't risen much, if at all over last year even though there are almost 40% fewer on the market. Sales are actually down 27% over October last year too, which also helps account for the lack of change in average selling price.
In comparison, across the GTA, the average sale price was up 20% over last year, to $423,559 and the number of homes sold (all types) jumped 64% to 8,476 this year.
~~~
In October, 84 of 128 listed detached homes were sold (65%) at an average price of $342,137 [Note: 65% and higher indicates a Sellers' Market]
To compare, in October 2008, 60 of 312 homes were sold (19%) at an average price of $327,104 [Note: Less than 45% indicates a Buyer's Market]
The average Days On Market (DOM)
- October 2008: 41
- October 2009: 20
So several things immediately come to light
- there are considerably fewer detached homes on the market this year, than last (almost 60% fewer!)
- the actual number of homes sold is up 40% over last year
- the average price is up, most likely influenced by the relative shortage of homes on the market
To compare, let look at condo townhomes.
In 2009, 11 of 19 (58%) sold for an average $206,355
In 2008, 15 of 31 (48%) sold for an average $206,477
So prices for condo townhomes in Whitby haven't risen much, if at all over last year even though there are almost 40% fewer on the market. Sales are actually down 27% over October last year too, which also helps account for the lack of change in average selling price.
In comparison, across the GTA, the average sale price was up 20% over last year, to $423,559 and the number of homes sold (all types) jumped 64% to 8,476 this year.
~~~
Sunday, 27 September 2009
Know What You're Buying
While the local real estate industry has made good strides over the years to improve how people buy and sell homes, there's still a "caveat emptor" (buyer beware) aspect to it.
For example, in the case of buying a power of sale home from a lender, were you aware that the previous home owner (the one in default on the mortgage) actually has up to and including the closing day to come up with funds to redeem their house? It's called "Right to Redeem".
So if you bought one of these houses with say, a 60 day close, then sell your house firm, you could find out in that time period that you're not going to get the house and since you've already sold yours, you have no place to live, come closing day.
Another example - If you buy a house that's listed in "as is" condition, were you aware that that could mean that it's not even legally inhabitable?
Don't rush into a home buying decision that might not be right for you. Make sure that you and your Realtor both do your homework to help ensure that you find the kind of home that's right for you.
For example, in the case of buying a power of sale home from a lender, were you aware that the previous home owner (the one in default on the mortgage) actually has up to and including the closing day to come up with funds to redeem their house? It's called "Right to Redeem".
So if you bought one of these houses with say, a 60 day close, then sell your house firm, you could find out in that time period that you're not going to get the house and since you've already sold yours, you have no place to live, come closing day.
Another example - If you buy a house that's listed in "as is" condition, were you aware that that could mean that it's not even legally inhabitable?
Don't rush into a home buying decision that might not be right for you. Make sure that you and your Realtor both do your homework to help ensure that you find the kind of home that's right for you.
Friday, 11 September 2009
Home Insurance - Look Closely!
Here's a good article in TheStar.ca's "Your Home" section on the value of checking your insurance needs and coverage before/during an offer. People sometimes assume that every house is insurable and that it's a commodity. But insurance could also help you determine if there had been previous claims on that house that you might want to know about.
Read more here.
Read more here.
Thursday, 3 September 2009
This Market Has Legs!
Housing Market on Robust Rebound
The numbers are in for August, and like June and July before them, TREB is reporting that sales were up 27% over the previous August.
Despite the very dismal first few months of the year, year-to-date sales for the first 8 months of the year are now running at 2% HIGHER than 2008. That's quite the catch-up from the start of the year!
The average price is up less than 1/2% over last year, currently at $385,978
Interestingly, active listings are actually down 37% over last year - which, to me anyway, explains the rapid sales that are happening; more buyer competing for fewer homes.
An example of this is a house in Whitby, on Lofthouse. I had still had it on my watch-list from some previous buyers and it sat on the market for 73 days at the original price of $349,900 and then all of a sudden, there's a bidding war on it and it sells over asking price!
In Pickering, the hottest market segment is detached houses in South Pickering. Last month, 100% of the 17 detached homes were sold, 75% of the semi-detached were sold.
In terms of buyers or seller's market, here's the guideline
In E13, for detached homes it was 48% and 100% respectively.
I've been showing some condos downtown recently, in C08 (south of Bloor, east of Yonge) and they've been flying out the door. Last month, 72% of listings sold for an average of 101% of list price!
A Word of Caution on Gift Cards
Finally, a word of warning when buying gift cards.
Especially if you pay cash.
It seems that some unscrupulous cashiers have not actually been putting the purchased amount ON the card and just pocket the cash.
When you buy a gift card with some money on it, ask the cashier to swipe the card and show you the money is there.
The numbers are in for August, and like June and July before them, TREB is reporting that sales were up 27% over the previous August.
Despite the very dismal first few months of the year, year-to-date sales for the first 8 months of the year are now running at 2% HIGHER than 2008. That's quite the catch-up from the start of the year!
The average price is up less than 1/2% over last year, currently at $385,978
Interestingly, active listings are actually down 37% over last year - which, to me anyway, explains the rapid sales that are happening; more buyer competing for fewer homes.
An example of this is a house in Whitby, on Lofthouse. I had still had it on my watch-list from some previous buyers and it sat on the market for 73 days at the original price of $349,900 and then all of a sudden, there's a bidding war on it and it sells over asking price!
In Pickering, the hottest market segment is detached houses in South Pickering. Last month, 100% of the 17 detached homes were sold, 75% of the semi-detached were sold.
In terms of buyers or seller's market, here's the guideline
- If less than 45% of available listings sell, it's a "Buyer's Market"
- If 45-65% of available listings sell, it's "Balanced Market"
- If over 65% of available listings sell, it's a "Seller's Market"
In E13, for detached homes it was 48% and 100% respectively.
I've been showing some condos downtown recently, in C08 (south of Bloor, east of Yonge) and they've been flying out the door. Last month, 72% of listings sold for an average of 101% of list price!
A Word of Caution on Gift Cards
Finally, a word of warning when buying gift cards.
Especially if you pay cash.
It seems that some unscrupulous cashiers have not actually been putting the purchased amount ON the card and just pocket the cash.
When you buy a gift card with some money on it, ask the cashier to swipe the card and show you the money is there.
Sunday, 16 August 2009
Recent Real Estate articles
The Big Bucks are Back
Update on Condo development at 1 Bloor - Note that there's no guarantee that buyer deposits for this failed development will be returned in full, or even at all! Condo buyers of new, unbuilt units, should discuss the agreement with their lawyer *before* signing, to ensure that they can get their deposits back, without penalty, if the builder cannot develop the agreed upon condominium. Also, buyers should be aware of whether the builder has the option to sell the development to another builder without giving you the option to bail. Completion of a new development is not an automatic, foregone conclusion. Know your rights!
Market strength fools the experts - Even CMHC, which had forecast a down year in real estate this year was fooled by the strong surge - around mid-August, total sales YTD now exceeded the comparable YTD sales for last year. And that's despite sales in January and February being off 50% from last year!
Update on Condo development at 1 Bloor - Note that there's no guarantee that buyer deposits for this failed development will be returned in full, or even at all! Condo buyers of new, unbuilt units, should discuss the agreement with their lawyer *before* signing, to ensure that they can get their deposits back, without penalty, if the builder cannot develop the agreed upon condominium. Also, buyers should be aware of whether the builder has the option to sell the development to another builder without giving you the option to bail. Completion of a new development is not an automatic, foregone conclusion. Know your rights!
Market strength fools the experts - Even CMHC, which had forecast a down year in real estate this year was fooled by the strong surge - around mid-August, total sales YTD now exceeded the comparable YTD sales for last year. And that's despite sales in January and February being off 50% from last year!
Thursday, 6 August 2009
July sales break another record!
What a peculiar year it's been. At the start, in January and February, it looked like sales were going to drop right off the map, with transactions being down around 50% compared to the previous year.
But that was short-lived.
Following in record-breaking June's footsteps (up 26%), July has similarly set the all-time record for resales in July with 9.967 homes sold - up a whopping 28% over last July! The average price was up 6% to $395,414.
Homeowners are clearly feeling confident about the combination of an economic recovery and record-low interest rates to jump back into the real estate market with gusto.
Instead of the usual summer-slowdown in real estate sales, they've turned into the busiest months so far this year!
As a matter of fact, despite the steep drop-off in sales to start the year, total sales year-to-date are only down a mere 1.2% from last year!
But that was short-lived.
Following in record-breaking June's footsteps (up 26%), July has similarly set the all-time record for resales in July with 9.967 homes sold - up a whopping 28% over last July! The average price was up 6% to $395,414.
Homeowners are clearly feeling confident about the combination of an economic recovery and record-low interest rates to jump back into the real estate market with gusto.
Instead of the usual summer-slowdown in real estate sales, they've turned into the busiest months so far this year!
As a matter of fact, despite the steep drop-off in sales to start the year, total sales year-to-date are only down a mere 1.2% from last year!
Sunday, 26 July 2009
Searching the GTA PLUS for you!
On Tuesday, July 28th, members of TREB (Toronto Real Estate Board) will have beta access to a new system. Here's an excerpt of the announcement we received....
CONNECT is a joint venture of the Toronto Real Estate Board, REALTORS® Association of Hamilton-Burlington, the London and St. Thomas Association of REALTORS® and the Ottawa Real Estate Board. It offers all REALTOR® members, Unlicensed Assistants and Brokerage Administrators from participating boards the ability to search and view active listings and recent sales history of all other participating boards in their own local MLS® format.
CONNECT is not an MLS system – it provides access to more information in an efficient manner. Members will have the ability to search and view 2 years of Active, Sold, Conditional Sold and Pending Sold information for all listing classes except for Commercial, which will have 4 years of history.
What does this mean for you?
Well, now your TREB Realtor will have access to a much broader geography of real estate properties. Currently we can see listings (and history) as far west as Oakville - Highway 6 and the Oakville/Burlington Townline.
Going forward, we'll also have access to listings (and two years of history) in
Note that this isn't an amalgation of systems or boards but rather a collaboration to share information.
How is this different from REALTOR.CA (formerly MLS.CA)?
Well, that system (REALTOR.CA) is a Canada-wide system aimed at the consumer, offered by the Canadian Real Estate Association (CREA). All member boards of CREA can upload their board-specific listing information into that national system for access by the broader public.
Since every board uses their own selected software and database, some have more and/or different information than others so only a common set of information appears on REALTOR.CA.
In addition, REALTOR.CA shows only current listings without any sold information.
With this new CONNECT system, your Realtor will also be able to access up to two years of historical information on properties in those areas as well.
Call your local Realtor (me?) for more information.
CONNECT is a joint venture of the Toronto Real Estate Board, REALTORS® Association of Hamilton-Burlington, the London and St. Thomas Association of REALTORS® and the Ottawa Real Estate Board. It offers all REALTOR® members, Unlicensed Assistants and Brokerage Administrators from participating boards the ability to search and view active listings and recent sales history of all other participating boards in their own local MLS® format.
CONNECT is not an MLS system – it provides access to more information in an efficient manner. Members will have the ability to search and view 2 years of Active, Sold, Conditional Sold and Pending Sold information for all listing classes except for Commercial, which will have 4 years of history.
What does this mean for you?
Well, now your TREB Realtor will have access to a much broader geography of real estate properties. Currently we can see listings (and history) as far west as Oakville - Highway 6 and the Oakville/Burlington Townline.
Going forward, we'll also have access to listings (and two years of history) in
- Burlington,
- Hamilton,
- St. Thomas and
- London in the west
- and in the "far" east, Ottawa!
Note that this isn't an amalgation of systems or boards but rather a collaboration to share information.
How is this different from REALTOR.CA (formerly MLS.CA)?
Well, that system (REALTOR.CA) is a Canada-wide system aimed at the consumer, offered by the Canadian Real Estate Association (CREA). All member boards of CREA can upload their board-specific listing information into that national system for access by the broader public.
Since every board uses their own selected software and database, some have more and/or different information than others so only a common set of information appears on REALTOR.CA.
In addition, REALTOR.CA shows only current listings without any sold information.
With this new CONNECT system, your Realtor will also be able to access up to two years of historical information on properties in those areas as well.
Call your local Realtor (me?) for more information.
Saturday, 4 July 2009
Protect your own interests, first!
There's an interesting article in today's online "paper" that talks about someone lending their name to a real estate transaction over the lure of cheap & easy money. Read it here.
Per the old saying, if it sounds too good to be true, it probably is.
Your credit rating is extremely important to you and you should do everything that you can, to protect it. Who accesses your credit rating? Not just credit card companies. Insurance companies have hinted that they're trying (or are) connecting their insurance rates to your credit rating; that people with lousier credit tend to also be higher insurance risks. Also, I have heard (but don't know for sure) that some employers run credit checks on their prospective employees as part of a security check.
Per the old saying, if it sounds too good to be true, it probably is.
Your credit rating is extremely important to you and you should do everything that you can, to protect it. Who accesses your credit rating? Not just credit card companies. Insurance companies have hinted that they're trying (or are) connecting their insurance rates to your credit rating; that people with lousier credit tend to also be higher insurance risks. Also, I have heard (but don't know for sure) that some employers run credit checks on their prospective employees as part of a security check.
Monday, 15 June 2009
Pricing in a changing market
It's always interesting to see how home sellers view the pricing of their homes.
Of course, most sellers believe their house is worth more than it actually is. Heck, I'm no different with my own house!
Often times sellers will want to list their house at a higher price than is realistic. The common logic behind this is the assumption that all offers occur at a fixed portion/percent of the asking price (I.e. 95% of the list price). So the rationale goes that "the higher I list, the higher I will sell for"
But that's not the case.
House prices are set by the market forces - what buyers and sellers *agree* that a house is worth. That's when a sale happens and that's when "market value" is established.
The further away a list price is from "market value", the lower the offer (if any) it will attract. Buyers and Realtors recognize over-priced homes and make offers accordingly.
All they have to do is see what comparable homes have been selling for recently, in the same area.
And when a seller reduces their list price to closer to market value, the offers that come in, start off closer to the asking price because buyers recognize the value.
Finally, when a seller lists their home *below* the market value, that's when multiple offers (bidding wars) occur.
Has anyone ever seen a bidding war start on an over-priced house?
Nope.
So as the list price comes down, the initial offer price comes up.
They meet around "market value" and then if they were to continue their respective paths, and the list price drops below market value, the offer price can actually move *above* market value! And that's often when you have multiple buyers wanting in on the "deal".
That's the effect of open market forces on the real estate market.
Of course, most sellers believe their house is worth more than it actually is. Heck, I'm no different with my own house!
Often times sellers will want to list their house at a higher price than is realistic. The common logic behind this is the assumption that all offers occur at a fixed portion/percent of the asking price (I.e. 95% of the list price). So the rationale goes that "the higher I list, the higher I will sell for"
But that's not the case.
House prices are set by the market forces - what buyers and sellers *agree* that a house is worth. That's when a sale happens and that's when "market value" is established.
The further away a list price is from "market value", the lower the offer (if any) it will attract. Buyers and Realtors recognize over-priced homes and make offers accordingly.
All they have to do is see what comparable homes have been selling for recently, in the same area.
And when a seller reduces their list price to closer to market value, the offers that come in, start off closer to the asking price because buyers recognize the value.
Finally, when a seller lists their home *below* the market value, that's when multiple offers (bidding wars) occur.
Has anyone ever seen a bidding war start on an over-priced house?
Nope.
So as the list price comes down, the initial offer price comes up.
They meet around "market value" and then if they were to continue their respective paths, and the list price drops below market value, the offer price can actually move *above* market value! And that's often when you have multiple buyers wanting in on the "deal".
That's the effect of open market forces on the real estate market.
Tuesday, 12 May 2009
The new "safe haven"?
Ok, so the stock market has tanked and the "average Joe's" retirement portfolio has lost over 40% of its value. Some large banks and investment houses as well as a few commercial "pillars of our economy", previously thought of as "unsinkable" have sunk or are in the process of sinking.
Banks and bonds are returning near-zero on investments.
For a lot of baby boomers, the maximum insured amount on bank balances doesn't cover all of their savings.
Where can you safely put your money *and* get some sort of return on it?
Have you considered real estate?
Look at it this way....
So if you know you're a "safe bet" to make those payments, then the low-risk investment play of the day is obviously real estate.
Another option - buy a place and rent out either all or a portion of it and have someone else pay your mortgage!
Do your own due diligence on this thinking.
One book worth reading is "Real Estate Riches" by Dolf de Roos ($17 USD)
Check it out on Amazon.com
Banks and bonds are returning near-zero on investments.
For a lot of baby boomers, the maximum insured amount on bank balances doesn't cover all of their savings.
Where can you safely put your money *and* get some sort of return on it?
Have you considered real estate?
Look at it this way....
- stocks prices can (and do) fall to zero or near-zero values
- bonds are only as good as the viability of the issuing institution - I.e. if GM or Chrysler file for bankruptcy, what does that make their bonds worth?
- banks? - they're no longer an infallible, safe haven. And what return do you get on your savings? Peanuts at best!
- unlike stocks, when have real estate prices ever fallen to zero, or even dramatically at all? (not including real estate near Three Mile Island!)
- the market in general has plumetted over 40% but local real estate prices have barely dropped 6% and the markets are already coming back!
- You'd be hard pressed to get a bank to loan you 50% of the money to buy stocks (I.e. on margin) but with 20% down, you can still pretty easily borrow the remaining 80% to buy a house
So if you know you're a "safe bet" to make those payments, then the low-risk investment play of the day is obviously real estate.
Another option - buy a place and rent out either all or a portion of it and have someone else pay your mortgage!
Do your own due diligence on this thinking.
One book worth reading is "Real Estate Riches" by Dolf de Roos ($17 USD)
Check it out on Amazon.com
Sunday, 10 May 2009
Real estate articles worth reading
Here are some interesting articles that I've come across recently.
Real estate experts see silver lining
http://www.yourhome.ca/homes/article/630298
Simple home staging tips
http://www.yourhome.ca/homes/article/629975
Composite deck advantages
http://www.yourhome.ca/homes/article/630278
Cottage purchases need a special expertise - don't use a city realtor!
http://www.yourhome.ca/homes/article/630284
"White-box homes" - Are they coming?
http://www.yourhome.ca/homes/article/626564
More on cottages - keeping a cottage in the family? Get professional advice.
http://www.yourhome.ca/homes/article/619139
Real estate experts see silver lining
http://www.yourhome.ca/homes/article/630298
Simple home staging tips
http://www.yourhome.ca/homes/article/629975
Composite deck advantages
http://www.yourhome.ca/homes/article/630278
Cottage purchases need a special expertise - don't use a city realtor!
http://www.yourhome.ca/homes/article/630284
"White-box homes" - Are they coming?
http://www.yourhome.ca/homes/article/626564
More on cottages - keeping a cottage in the family? Get professional advice.
http://www.yourhome.ca/homes/article/619139
Saturday, 25 April 2009
New Home Buyers Beware
I always warn any of my buyer-clients who are considering a new home from a builder that they should insist that any offer they make should be conditional on them reviewing it with their lawyer.
I'm not saying that buying new is a bad thing - but buyers should remember that sales people working on behalf of a new home builder are not required to be licensed real estate agents so they have no governing body like RECO to oversee them and have no Code of Ethics to abide by.
This article in The Star is a perfect example of some of the things to be aware of.
(including a 39 page purchase offer!!!!)
http://www.yourhome.ca/homes/article/622890
Is your neighbourhood up or down recently?
http://beta.theglobeandmail.com/globe-investor/early-signs-of-a-rebound/article1061236/
Is the Spring market already starting to thaw? Click here.
I'm not saying that buying new is a bad thing - but buyers should remember that sales people working on behalf of a new home builder are not required to be licensed real estate agents so they have no governing body like RECO to oversee them and have no Code of Ethics to abide by.
This article in The Star is a perfect example of some of the things to be aware of.
(including a 39 page purchase offer!!!!)
http://www.yourhome.ca/homes/article/622890
Is your neighbourhood up or down recently?
http://beta.theglobeandmail.com/globe-investor/early-signs-of-a-rebound/article1061236/
Is the Spring market already starting to thaw? Click here.
Thursday, 16 April 2009
Real Estate articles worth a look
The Spring real estate market appears to be gaining steam once again.
Or, put another way, the previous market descent has slowed down and almost levelled off.
But either way you put it, I'm finding that both buyers and sellers have been finding their way back into the real estate market in the GTA. The fear mongerers are put off by this of course.
But when you compare how the lenders work in Canada vs. the U.S., you can see why their artificially created housing bubble never materialized here.
People will often say that we follow the U.S. economy, or we're in lockstep with them, or we lag behind whatever happens there, but if the business rules are different, or in this case, the lending rules, then what happens there isn't necessarily going to happen verbatim, up here.
In the U.S., pretty much anyone with a pulse could previously qualify for a mortgage. That hasn't been the case here.
So I suspect that in large part, our real estate market slowdown was created by fears of what happened in the U.S. - not by anything that actually *happened* here.
Are we feeling the economic slowdowns? Of course.
Is the real estate market getting or going to get pasted, like the U.S. one?
I don't think so.
Enjoy the following articles.
Buyers gain upper hand in real estate market
http://www.yourhome.ca/homes/article/618464
The provincial "green" legislation carries some scary powers - why?
http://www.yourhome.ca/homes/article/600663
Home tips
http://www.yourhome.ca/homes/article/429364
RBC says home ownership is more affordable
http://www.yourhome.ca/homes/article/619400
Spring housing market showing signs of life
http://www.yourhome.ca/homes/article/619146
Or, put another way, the previous market descent has slowed down and almost levelled off.
But either way you put it, I'm finding that both buyers and sellers have been finding their way back into the real estate market in the GTA. The fear mongerers are put off by this of course.
But when you compare how the lenders work in Canada vs. the U.S., you can see why their artificially created housing bubble never materialized here.
People will often say that we follow the U.S. economy, or we're in lockstep with them, or we lag behind whatever happens there, but if the business rules are different, or in this case, the lending rules, then what happens there isn't necessarily going to happen verbatim, up here.
In the U.S., pretty much anyone with a pulse could previously qualify for a mortgage. That hasn't been the case here.
So I suspect that in large part, our real estate market slowdown was created by fears of what happened in the U.S. - not by anything that actually *happened* here.
Are we feeling the economic slowdowns? Of course.
Is the real estate market getting or going to get pasted, like the U.S. one?
I don't think so.
Enjoy the following articles.
Buyers gain upper hand in real estate market
http://www.yourhome.ca/homes/article/618464
The provincial "green" legislation carries some scary powers - why?
http://www.yourhome.ca/homes/article/600663
Home tips
http://www.yourhome.ca/homes/article/429364
RBC says home ownership is more affordable
http://www.yourhome.ca/homes/article/619400
Spring housing market showing signs of life
http://www.yourhome.ca/homes/article/619146
Thursday, 26 March 2009
New provincial real estate tax
Across Ontario, when Joe Public sells his house, he is going to be paying an average of $1,500 in additional taxes to the provincial government when this PST/GST "Harmonization" takes effect.
Based on total home sales last year, and using the average sale price as a guide, it will mean over $100 million in additional revenue to the provincial government.
How is this "simpler", as they say, for the consumer?
At a time when the economy is struggling and the real estate market is still in a decline, a new tax is not going to help things.
More articles about it.......
Blended tax drives up costs for both new and resale home buyers in Ontario
Ontarians to receive $1,000 tax trade-offWhat the #!%* is sales tax harmonization?
Ontario in decline
Based on total home sales last year, and using the average sale price as a guide, it will mean over $100 million in additional revenue to the provincial government.
How is this "simpler", as they say, for the consumer?
At a time when the economy is struggling and the real estate market is still in a decline, a new tax is not going to help things.
More articles about it.......
Blended tax drives up costs for both new and resale home buyers in Ontario
Ontarians to receive $1,000 tax trade-offWhat the #!%* is sales tax harmonization?
Ontario in decline
Saturday, 14 March 2009
Down but not out
The February numbers are in and although the number of sales declined over the previous February, the amount of the decline was less than that in November-January.
Some interesting articles...
Royal LePage says the slump is at the half-way point already. Article
The Globe and Mail probably has the most comprehensive real estate section. Numerous articles worth perusing over your morning coffee. Click Here
Yourhome.ca writes how Spring is the usual barometer for the housing market economy. Article
But I hugely object to their statement that the bidding wars were "gleefully orchestrated by real estate agents". There are bad apples in every bushel. Were some "orchestrated"? I suspect so. Were all 28,000+ Realtors doing it? Not at all.
A bidding war can almost be created at any time, in any market simply by deliberately setting the list price below market value in a neighbourhood. With more than 75% of buyers first looking at houses online before hitting the streets, the Internet has brought these listings in almost everyone's home - even for casual reading. I know several friends who simply love browsing the homes currently on the market. So more people than ever before are looking at these listings and when an unusual bargain hits the market, the multiple offers appear.
As an example, just recently I was involved in a multiple offer situation on behalf of buyers for a nice home in Scarborough. Compared to what else was on the market in Scarborough in that price range, this house was quite the bargain. The result? Seven offers were registered on that house and on offer presentation night, there were over a dozen cars parked on the street with agents and their buyers scurrying back and forth between cars to consult. Nothing about that was "orchestrated by agents" whatsoever.
It's funny but often times, sellers believe that the higher they set their asking price, they'll received a correspondingly higher offer. Not so.
Buyers comparison shop.
The more out of whack the list price is with area comparables, the greater the likelihood that they'll attract low-ball offers or no offers at all.
As the list price moves closer to the real market value, so too, do the resulting offers. And the number of offers will often increase, too!
And when the list price moves *below* market value, that's usually when you're going to get multiple offers and offers that exceed the list price.
So more than ever, in a market with fewer buyers, I advise my sellers that setting a very realistic list price is key to getting the buyers in your door and offers on your table.
Some interesting articles...
Royal LePage says the slump is at the half-way point already. Article
The Globe and Mail probably has the most comprehensive real estate section. Numerous articles worth perusing over your morning coffee. Click Here
Yourhome.ca writes how Spring is the usual barometer for the housing market economy. Article
But I hugely object to their statement that the bidding wars were "gleefully orchestrated by real estate agents". There are bad apples in every bushel. Were some "orchestrated"? I suspect so. Were all 28,000+ Realtors doing it? Not at all.
A bidding war can almost be created at any time, in any market simply by deliberately setting the list price below market value in a neighbourhood. With more than 75% of buyers first looking at houses online before hitting the streets, the Internet has brought these listings in almost everyone's home - even for casual reading. I know several friends who simply love browsing the homes currently on the market. So more people than ever before are looking at these listings and when an unusual bargain hits the market, the multiple offers appear.
As an example, just recently I was involved in a multiple offer situation on behalf of buyers for a nice home in Scarborough. Compared to what else was on the market in Scarborough in that price range, this house was quite the bargain. The result? Seven offers were registered on that house and on offer presentation night, there were over a dozen cars parked on the street with agents and their buyers scurrying back and forth between cars to consult. Nothing about that was "orchestrated by agents" whatsoever.
It's funny but often times, sellers believe that the higher they set their asking price, they'll received a correspondingly higher offer. Not so.
Buyers comparison shop.
The more out of whack the list price is with area comparables, the greater the likelihood that they'll attract low-ball offers or no offers at all.
As the list price moves closer to the real market value, so too, do the resulting offers. And the number of offers will often increase, too!
And when the list price moves *below* market value, that's usually when you're going to get multiple offers and offers that exceed the list price.
So more than ever, in a market with fewer buyers, I advise my sellers that setting a very realistic list price is key to getting the buyers in your door and offers on your table.
Friday, 6 March 2009
Interest is still in the market!
As the Spring real estate market begins to open up, I see some conflicting signs about the health of local real estate.
On the one hand, on behalf of buyer clients, just the other evening, I was presenting an offer that was 5th of 7 registered on a Scarborough home. Interest was incredible as in the days preceding the offer presentation, people seemed to be swarming over it like ants on a doughnut. The listing agent told me that they had been averaging 8-10 showings per day since it went on the market!
I've heard some similar stories from colleagues; how interest in certain geographical pockets is as strong as ever, if not even more, as bargain hunters appear to be on the loose with record-low financing rates.
Yet, on the other hand, we have the latest TREB statistics released for February now, which indicates that home sales have fallen 33% over the previous February.
Here's a recent article from The Star's site. http://www.yourhome.ca/homes/article/597391.
The average selling price was down 5% from last year to $361,305.
With prices cooling off a bit and interest rates at record lows, it really is an amazingly good time to be shopping for a house.
First time buyers get a break on both the City of Toronto and provincial Land Transfer Taxes and sellers are much more willing to actually negotiate than in recent years.
And still, like always, the best homes at the best prices are going fast.
It's that old analogy from the grocery store.
If you're buying apples, you peruse what's available, pick through them and at that price, you pick the best looking, shiniest apples and skip the rest.
The following shoppers look over what's left and if there's nothing that interests them at that price, they pass and wait for either the produce manager to lower the price for the lower quality apples that remain, or they wait for new apples to hit the market and start picking through them all over again.
The housing market is no different.
On the one hand, on behalf of buyer clients, just the other evening, I was presenting an offer that was 5th of 7 registered on a Scarborough home. Interest was incredible as in the days preceding the offer presentation, people seemed to be swarming over it like ants on a doughnut. The listing agent told me that they had been averaging 8-10 showings per day since it went on the market!
I've heard some similar stories from colleagues; how interest in certain geographical pockets is as strong as ever, if not even more, as bargain hunters appear to be on the loose with record-low financing rates.
Yet, on the other hand, we have the latest TREB statistics released for February now, which indicates that home sales have fallen 33% over the previous February.
Here's a recent article from The Star's site. http://www.yourhome.ca/homes/article/597391.
The average selling price was down 5% from last year to $361,305.
With prices cooling off a bit and interest rates at record lows, it really is an amazingly good time to be shopping for a house.
First time buyers get a break on both the City of Toronto and provincial Land Transfer Taxes and sellers are much more willing to actually negotiate than in recent years.
And still, like always, the best homes at the best prices are going fast.
It's that old analogy from the grocery store.
If you're buying apples, you peruse what's available, pick through them and at that price, you pick the best looking, shiniest apples and skip the rest.
The following shoppers look over what's left and if there's nothing that interests them at that price, they pass and wait for either the produce manager to lower the price for the lower quality apples that remain, or they wait for new apples to hit the market and start picking through them all over again.
The housing market is no different.
Tuesday, 10 February 2009
Real Estate Articles in the News
Here are some links to recent real estate articles in the media......
Loss of Confidence Swamps Housing Market
Condo Buyer Makes His a Double
A Burst of Action in an Idle Market
Four percent Tax Hike Expected for Toronto Homeowners
Home Prices to Fall by Eight Percent This Year
Loss of Confidence Swamps Housing Market
Condo Buyer Makes His a Double
A Burst of Action in an Idle Market
Four percent Tax Hike Expected for Toronto Homeowners
Home Prices to Fall by Eight Percent This Year
Sunday, 25 January 2009
Second thoughts pre-listing spruce-up
Have you been thinking of selling your house this year?
Have you also been thinking of doing some spruce up work around the house before you list it, to help you maximize your return?
Nothing wrong with that....mostly.
In the past, "up" market, sellers were usually advised to spruce-up their house before putting it on the market to help them net as much as possible on their home. And it also helps when competing against other homes.
However, we're in a market where prices are decreasing. Across the country, the average decline was 11% last year. So for this example, let's also say they're falling 1% per month.
Let's use fictitious Jack & Jill living in their $350,000 house in this example, too.
Jack & Jill are planning a spruce-up on their house before listing. They figure it'll take them one month to do that.
In that one month, the price of their house will decrease about $3,500.
So if their spruce-up efforts only add $3,500 to their selling price, they will have only broken even by doing it. They won't put any additional money in their pocket by doing it. The best they could hope for is that it makes the house look better than their competition and therefore helps it sell faster.
But there are more variables at work here.
Let's say that by waiting the extra month, they're now in the prime listing period of the calendar year (March-June) and now, additional homes have come onto the market in their area. That means more competition for fewer buyers.
It's not an automatic win anymore to hold off on listing to do some sprucing up. Give me a call to discuss your plans and I'll help you work through them.
Have you also been thinking of doing some spruce up work around the house before you list it, to help you maximize your return?
Nothing wrong with that....mostly.
In the past, "up" market, sellers were usually advised to spruce-up their house before putting it on the market to help them net as much as possible on their home. And it also helps when competing against other homes.
However, we're in a market where prices are decreasing. Across the country, the average decline was 11% last year. So for this example, let's also say they're falling 1% per month.
Let's use fictitious Jack & Jill living in their $350,000 house in this example, too.
Jack & Jill are planning a spruce-up on their house before listing. They figure it'll take them one month to do that.
In that one month, the price of their house will decrease about $3,500.
So if their spruce-up efforts only add $3,500 to their selling price, they will have only broken even by doing it. They won't put any additional money in their pocket by doing it. The best they could hope for is that it makes the house look better than their competition and therefore helps it sell faster.
But there are more variables at work here.
Let's say that by waiting the extra month, they're now in the prime listing period of the calendar year (March-June) and now, additional homes have come onto the market in their area. That means more competition for fewer buyers.
It's not an automatic win anymore to hold off on listing to do some sprucing up. Give me a call to discuss your plans and I'll help you work through them.
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