October 2017 Market Report on Resale Housing

Market Report for October 2017 - Residential Resale from Michelle Makos

WHAT WILL HAPPEN NEXT?

Hello Web Friends !

I haven't written for a bit because I need to settle in from my holiday and see what was happening and so far, what I see is .... A LOT OF LISTINGS SELLING BELOW ASKING !!!

So here are a few scenarios I have seen lately;  First I saw a bungalow in Pickering priced a little high for the market right now and they HELD offers.  It intrigued me because I couldn't believe they would hold offers in this market.  The Buyers aren't playing this game... so I showed it and  my clients and I both agreed not to put in an offer as it not worth the asking and there was no way it was worth competing for.... Offers were Monday night - Still on market, now offers anytime.  20 days later.  Did you help your Seller or did you hurt them? 

I have seen another listing in Ajax listed for 919 and on the market since July.  Then it was terminated and comes out the next day with the same agent for 949 !!  Did I miss something????   That to me is just a waste of the agent's time and money.  Sorry but when an agent takes on a listing, it is their money and time being spent with NO guarantee that it will sell.  It costs the Seller nothing.  So why would an agent do that?  Who is advising this, the home seller?  Are they

not using a Realtor for proper guidance and information?

Then I have seen homes that went on the market priced at last year's prices and they are SOLD CONDITIONAL... so those were priced to sell.   You cannot price your home in February/March 2017 prices.  Those are gone.  Those days are finished.

We have seen some sellers who sold FIRM in the frenzy, have to put their homes back on the market because the Buyers backed out.  They either couldn't close or they couldn't sell their own home so the home they purchased is now back on the market and anyone who thinks it should go on for what it sold for is not being realistic.  The sellers may have one price and they may take lower... you need to find out the history and a good Buyer agent will do that.  When you see the house with me, you are told when it was last bought, what they paid for it, what neighbouring homes are for sale or sold for.   How can you make an informed decision without that.

Now to get to the nitty gritty.  The September Stats.   The numbers are basically this... sales are down 35%, not prices... so the number of listings to solds are down 35% compared to same time in September 2016.  We saw this coming but the way they report it, the media skews it.   The actual home prices are up 2% from September 2016.   Which is still good prices for homes.  The issue is people want March 2017 prices and it won't happen.  So if you want to list your home to sell it, you need to price in in the range of September 2016 when we were all smiles and optimistic about the crazy HIGH prices of the market and now all of sudden it is like those prices are "you losing money"... well let me be frank, you can't lose money on something you never had... it is like saying a stock is worth 150.00 a share and you didn't buy it and now it is worth 75.00 a share and you buy it and say you lost 50%.. how so??????   The prices are still amazing considering what homes sold for 10 years ago.   So all this negative nonsense is ridiculous.   And in 10 more years, these prices will be cheap by comparison.

I do think we are in for a bit of a dip at the tale end of this year and early next year because I think they are making more changes to the mortgage qualifications and approvals and that will definitely change price points where some buyers may not qualify... these changes I have heard are coming in mid October but they don't truly know when they will take effect.  But when I know, I will let you know.

So all is well and the home which you love and reside is not worthless like the media would like you think.   The buyers that are out there are smarter now and they only buying properties priced correctly and they are rarely competing and even if they are, they aren't paying the crazy prices of earlier this year. 

If you want the stats for your particular neighbourhood, I would be happy to send them to you, just shoot me an email.  But let's be real everyone, the market was out of whack before.  Now it is more balanced and normal.  I don't know about you but I welcome normal.  It seems with all the tragedies we have seen around the World lately, normal isn't such a bad thing.

So if you need anything at all, listings, prices, home evaluation, or just have a question, reach out and call or text me at 416-300-3004, Michelle Makos,  Broker Owner at Royal Heritage Realty Ltd.   Keeping it Real in Real Estate !

P.S.   And off topic, who says you have to have a sign ????  I sell many homes with NO signs (mind you I do love my signs) ... because some of my clients don't want the neighbourhood knowing their business, ... Signs do not sell your home... Especially if you are on a residential street with little traffic.  If you want one, great but if you don't want one - say so !!   I have had people say, "We don't want one but when we sell, you can put it up sold... "  LOL.. I don't care either way.   My marketing is what sells your home, not the sign on your front yard.   Signs are purely advertising for the agent to maybe get a sign call but for the majority  of people, they are internet saavy and search the web.  Google me ... Google anyone you do business with.

Have a great long weekend everyone and HAPPY THANKSGIVING... to one and all !!!
Cheers !
Michelle xo

Great Things Never Came From Staying in Comfort Zones

Happy Long Weekend My Fellow Friends and Followers,

I just wanted to update you all on the dreaded July numbers and throw a little light into the dim picture the media has painted.  First of all, SALES were down 40.4 % from the same time last July (2016)... Sales NOT prices.  I have heard so much confusion and misinformation.  The sky is NOT falling in on real estate.  In fact, July and August have ALWAYS been the slowest time in real estate and with the added regulations that came about in April it just made it worse.... so yes the numbers are down for the 3rd consecutive month and I would guess August will be about the same..... BUT
look to September to see a nice hiccup in the  market.

I think we are just balancing out right now.   Prices are still up from the same time last July by maybe 5% but we saw huge growth in 2016 so anything now looks bad and the press has a way of spinning things to sensationalize them.  So if you are thinking on buying or selling, don't be discouraged.  Opportunity may be knocking.... I would say September after the long weekend you will see a more balanced and happy market.  Buyers will be able to have their conditions and Sellers will still make money .. maybe not at the 2016/early 2017 prices but let's face it, those prices were beyond ridiculous.  Anything that goes up that fast, was not normal.  I believe it was all due to lack of inventory.  Now we have a surplus of inventory and the Buyers seem to be waiting?  What are you waiting for?  Interest rates are still amazing, house prices are coming down to what they were a year or more ago and you have CHOICE, which you didn't have as much of before ...

This week I read this quote "Be fearful when others are greedy and greedy when others are fearful" ~ Warren Buffett AND how true is that statement.   Right now, people are running scared like the sky is falling in real estate, the bubble is popping etc and in fact, a smart person would be seeing that as an opportunity to get in the market.  No one ever looked back in history and said "Gee I wish I never bought that house"... whether it was in the peak in the market or the bust.... because real estate is not only an investment but it is YOUR HOME.   My goodness, no one is losing money if they bought in 2016 .. because chances are they aren't selling it... for a while and when they do, they will be just fine.  It is more the speculators who come in and buy homes and flip them and want to profit from it... not people like you and I who buy real estate for our home, our children's home and future retirement.

So please stop letting people scare you about real estate.  Yes it is slow, always is SLOW.  Yes, prices are down considerably from February and March and April of 2017 and I am glad they are.  The prices were going up too fast and buyers weren't given the opportunity to even have a second look or a proper inspection.   So YAY to a real estate slow down but I can guarantee you that the market will be healthy and strong in September ... once the dog days of summer have passed... not to mention the rain - the weather this summer has been awful and people aren't out looking at home in the rain.  They just aren't.

So if you are looking to buy, keep looking... you're timing is awesome and if you are thinking of selling, I would wait until after the long weekend in September and then reach out and let's talk about what we need to do to sell your home.  I still recommend people sell before they buy in this market and have always preferred people do that but the past 3 years that hasn't been the case... because you couldn't buy anything without firm offers in competition.  Those days are gone hopefully for a while.

Now let's breathe a little easier that the real estate mania has finally settled down and we buy and sell with more realistic and beneficial goals than before.  I am attaching the Durham Region stats for July and you will see the numbers are still good.  The days on market are more but the sale prices are still good... in comparison to 10 years ago, they are great !  So people need to stop being so negative and look at this as a great time to buy in real estate.

Have a great long weekend everyone... and hopefully we get some nice weather.   If you have any questions about the market, your home or any listings, please don't hesitate to reach out.

Please remember if you are buying and selling in the SAME MARKET ~ the conditions won't effect you.  It is when you are buying in one market and selling in another that you may get caught, this generally happens with long closings but if you buy and sell within 90 days, you are going to be find.  What you save on the buy will be the difference you may "think" you have lost on the sell.

In 10 years from now, we look back on these prices and laugh and say, "Man I wish I bought more real estate"... just like we have all been saying the past year and half I am sure !!!  I think we all know the housing plan put in place, spooked a few buyers and the interest rate hike didn't help but the deals are out there and ones that are shopping now, are going to look back and say, "I am so glad I did"... between now and the end of 2017, you will see some great opportunity.  Be ready for them.

Cheers to that !
Michelle Makos
Direct Line - 416-300-3004
Broker/Owner
Royal Heritage Realty Ltd.

January 2015 - Housing Market - Sales Up, Interest Rates Low, Inventory Low

2014 Sales up 6.7%
Interest Rates Low
Supply and Demand

With low gas prices, will you be saving more money and investing in real estate? To me, real estate is and always will be your best investment.  

Whether a first time buyer or an investor, prices are continuing to rise and the market is strong.

I look back to what I paid for my first home and what it is worth in today's market and think, "Hmmmm, instead of spending money on some of the stocks I bought, I would have been better to buy an income property and let the rent pay for it."  That would be great for retirement.  It is just something to think about.

Real Estate will always be a great investment in my mind and not because I sell it but because I believe it... and the numbers speak for themselves.

Young people with savings who live at home, should also consider buying a small property and renting it out and invest in their future.

It is win/win.  

So if you are considering selling your home, the market is strong and prices are high.  Spring market starts NOW !   

If you are looking to move up, I recommend finding a good local agent, list your home first so you have more negotiating power when you buy.. remember the market is busy and the stronger your offer is, the better chance you have of winning.

With that being said, enjoy the information video courtesy of TREB and I hope if you need any real estate advice in the future, you will contact a full time Realtor who you can trust and work with, to maximize your equity and service all your needs.

Happy Buying & Selling !
To search current homes for sale in GTA and Durham Region - visit www.michellemakos.ca

May 2013 - Housing Overview and Market

WHY HOUSING MARKET WILL STAY STRONG

Why GTA Housing Market Will Stay Strong In 2013
Great article written by Mark Weisleder.  Had to share !!!   

By Mark Weisleder | Moneyville. ca

Many economists predicted a local real estate crash this year, with prices falling by up to 25 percent. I didn’t see that prediction coming true and it didn’t. Nor do I believe it will happen in 2013.

Here’s why:

1. Homes are more affordable
   In 1990, the average GTA home cost half of what it does today. But interest rates were 12 percent for a five-year term at the time. So, if a two-bedroom condo cost $250,000 in 1990 and you had a 20-per-cent down payment, your monthly carrying costs, including interest, taxes and common expenses, were about $2,500. The average rental for a two-bedroom condo at the time was $1,100, according to the Housing New Canadians research group. So the economics of ownership made no sense.
   
   Today, even with a price of $500,000, if you have a 20-per-cent down payment, with current interest rates at 3 percent, the total monthly payment is what it was in 1990. It is still $2,500 per month, including common expenses and taxes. But in downtown Toronto, the average rent paid for a two-bedroom unit is now close to $2,500 per month.
   
   Most tenants who can afford $2,500 a month or more in rent can probably afford to buy a home now, if they have 10 percent down payment or more.
    
2. The lesson from 2012
   Toronto Real Estate Board statistics up until Nov. 30 show 82,200 units had sold in the GTA so far this year. In 2011, it was 84,900, and in 2010 it was 81,900. The average price on Nov. 30 was 2 percent higher than a year ago. If anything, the market has remained very stable for the past three years.
    
3. Impact of mortgage rule changes is minor 
   The mortgage rule changes imposed in early July lowered the amortization period to 25 years if you were putting less than 20 percent down and lowered the percentage of your income that could be used for borrowing from 44 percent to 39 percent. The result was that buyers who would have purchased in late summer or fall moved up their purchasing decision to the spring. By fall, this meant many would-be first-time buyers were looking to rent instead of buy. This contributed to low vacancy rates.
    
4. 2013 will be fine 
   Despite the doom and gloom, Toronto condo rental vacancy rates are 1.7 percent. This means that for those people who cannot sell their condos, there are plenty of renters who can cover the monthly costs.
    
5. Debt-to-income ratio not relevant
   As our American friends like to say, “That dog won’t hunt.” Every month we are told that because the ratio of household debt to household income continues to rise — and is now at 164 percent — there is a danger of a real estate collapse.
   
   What this really means is that the average Canadian household has an income of $100,000 and total debt of $164,000 (of which their real estate debt constitutes-two thirds). Again, as stated earlier, with interest rates at 3 percent, this is not a dangerous problem.
   
   If interest rates were 12 percent, as they were in 1990, or if all your debt was on your credit cards (with interest rates averaging 18 percent), then this would be a serious problem.
   
   Note to readers: Pay down or eliminate your credit card debt in 2013.
   
   Note to government: With mortgage interest rates at 3 percent, it is almost criminal for lenders to be able to charge 18 percent on consumer credit cards.
    
6. Interest rates may not rise until 2015
   The U.S. Federal Reserve is now saying it won’t raise rates until 2015. Our rates can’t differ much from theirs without harming our economy with a strong dollar and slower growth.

These are all things to keep in mind in the coming year. Somebody has been predicting a Canadian real estate market collapse for the past 12 years. It hasn’t happened yet and won’t happen in 2013.

Less demand is better than a BUST !

"Less demand, lower prices, modestly, in the housing market are much better for Canadians than a boom followed by a bust" says Canada's finance minister on the country's cooling housing market.

Canada’s finance minister is taking credit for the recent cooling in the hot housing market, saying a slowdown now is better than a crash later.

Full story :http://business.financialpost.com/2012/12/03/cooling-housing-market-shows-stricter-mortgage-rules-working-flaherty/

Stricter mortgage rules have softened the market but it also makes it a healthier market for sellers to list their homes in.   Less deals falling through because pre-approvals are being done prior to even working with a Realtor to make sure they can afford what they are looking.   This is great market to buy as well due to the low interest rates.  Think about it, why pay someone elses mortgage... get a downpayment together and get in the market as soon as you can.  Real estate is the best investment of your life.   Let me show you how.