Top 10 Housing Predictions from Dave Liniger

Great video and I predict he is correct !  :)   2013 and is the year to get IN the market, not out of it !!  Mortgage rates will remain steady and standards will remain tight but rents will increase causing more people to buy !  Canada only caught a cold where the U.S. caught the flu !  Recovery is on the way for them and Canada will also benefit.  Real estate is your best investment.
For all your real estate needs, choose wisely.  Call Me today to discuss your needs.   Let's get started...

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.

Bank of Canada - Rate remains unchanged

OTTAWA - January 23rd, 2013 - News Release

In Canada, the slowdown in the second half of 2012 was more pronounced than the Bank had anticipated, owing to weaker business investment and exports. Caution about high debt levels has begun to restrain household spending. The Bank expects economic growth to pick up through 2013. Business investment and exports are projected to rebound as foreign demand strengthens, uncertainty diminishes and the temporary factors that have weighed on resource sector activity are unwound. Nonetheless, exports should remain below their pre-recession peak until the second half of 2014 owing to a lower track for foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.  

Next scheduled Bank of Canada announcement is March 6th, 2013.   

For the full story ... CLICK HERE

Re/Max - Just Released - Home Buying Trends

Canadian homebuyers more experienced,

 financially prudent moving forward, says RE/MAX

Homebuying Trends

Tighter mortgage lending rules, in conjunction with the fallout of the US housing meltdown and the European debt crisis, have triggered a shift in the Canadian homebuyer mix and mindset.  The new Canadian real estate consumer is experienced, fiscally-responsible, and ready to move forward over the next 24 months.

That’s the takeaway from the RE/MAX Canadian Homebuying Trends Survey conducted among more than 1,100 prospective purchasers late last year.

 National findings include:

•          Almost one in five purchasers is single
•          More than two-thirds are second or multi-time purchasers
•          Four out of 10 purchasers between the ages of 18-34 have a downpayment of 20 per cent or more
•          Just over 80 per cent of buyers believe housing values in their area will rise or remain the same

Changing market conditions have clearly prompted the shift in the homebuying activity from coast to coast.  Once dominated by first-time buyers, the survey found that second and multi-time buyers will lead the charge for housing over the next two years.  Experienced purchasers now represent 70 per cent of homebuyers, while first-time buyers are sitting at 30 per cent.

Spending will be reined in—with 38 per cent of purchasers indicating they’ll spend under $250,000 and 42 per cent indicating they will spend between $250,000 and $500,000. In Ontario, fewer buyers will fall under the $250,000 price point—at 31 per cent—and more buyers will be active between $250,000 and $500,000—45 per cent.

Greater fiscal responsibility is evident across the board.   In fact, 40 per cent of younger purchasers, aged 18 to 34, are expected to put down 20 per cent or more.  Serious equity gains have been a contributing factor.

Consumer demographics continue to evolve, shaped by new realities. Single buyers have emerged as a force in the market, representing almost one in five purchasers.  Forty-Five per cent are female—a stat that truly demonstrates how far we’ve come, as the number of successful, young female professionals entering Canadian housing markets climbs. 

Confidence underpins the Canadian housing market, with 83 per cent of purchasers believing that housing values in their area will rise or stay the same over the next 12 months.  Homebuyers were most bullish in Ontario, where that figure rose to 85 per cent.  Optimism in the province continues to be propped up by sound real estate market fundamentals and an improving economic outlook.

While the homebuying mix may be different, the mantra is the same.   Homeownership remains a key component of the Canadian Dream.  It’s a common thread among all Canadians—a goal to which we aspire—and that’s not likely to go away anytime soon. 

Just Back from Inman Connect 2013

I have been away from 5 days attending the Inman Connect 2013 in New York City.  It is all the upcoming trends and information on real estate and technology to take my business to the next level.

Inman News^®, Real Estate Connect^® is the preeminent event for everyone who cares about the real estate industry and where it is going. Each year, thousands of influential real estate leaders gather at Real Estate Connect to network, make deals, explore current trends and technology, and to learn how to embrace and leverage the change that surrounds our industry.

The theme this year was a "Latte Vision" - as we all know the U.S.A is very big on Starbucks.  So the "latte vision" is a similar way of selling real estate.  "Be bigger, bolder and different" than every other Realtor out there.   Make yourself stand apart from the rest.  We spoke about the US economy and the Global markets.  What people want from a Realtor?  What sets you apart?   How to push the envelope?

Overall it was a great learning experience and New York City was something to behold !   

So if you are looking for a Real Experience that pushes the envelope, informative, fun and fresh ~ you have found your next Realtor !   Feel free to contact me at your convenience and lets start the process.   Have a super day everyone and don't forget, I am waiting for your call.   I treat every client as they are MY ONLY CLIENT ! xo

Why More Home Sellers are listing in January !

Great article from Mark Weisleder - Thought I would share it.  I am off to New York City for Inman until Saturday.  Will have loads of new real estate info to share upon my return.  Enjoy the article.  As for Durham Region, the market is in desperate need of listings.  One home in Whitby sold for 30K over asking with 9 offers.   So if you are thinking on waiting until March or April, you may want to rethink that.  Just a thought to leave you with.

Mark's article:

With an uncertain housing market, more homeowners are opting to put their houses on the market in January.

Traditionally, January is a slow month for real estate as most sellers choose to wait until the middle of February in the hopes of capitalizing on the early spring market. However, given the uncertainty in the housing market right now, more sellers are opting to put their house on the market in January.

This presents an opportunity for buyers. Most people are reluctant to uproot their families during the school year, so that means less competition — and fewer bidding wars. Lenders will not be as busy, so buyers can expect a more efficient process to get approved for a mortgage to ensure they have financing in place before making an offer.

But there are things you simply won’t be able to inspect during the winter. Here are some tips for protecting yourself when making a deal during the winter months:

Sellers
Spruce up the outside: Use urns with light wood branches to brighten up the exterior of your home, to compensate for any overcast day or snow on the ground.
Get rid of the Christmas lights: homes that look dated on the outside give the impression that they are probably dated on the inside.
Make sure your fireplace is working during any showing, that the temperature is comfortable in the home and that any interior lighting compensates for what is usually grey lighting from outside.
Have pictures of your landscaping available from the summer and autumn, showing how beautiful your home looks year round.
Have available any inspections that you may have done on your air-conditioning unit or swimming pool before they were closed for the winter, as buyers will likely not be able to conduct inspections on these items and will have questions.
Consider inviting a company to do an environmental audit on your home in advance, confirming that there is no moisture behind the walls that could lead to mould and that you have sufficient insulation behind the walls.

Buyers
If there is anything that cannot be inspected because of the winter, such as the air-conditioning system or any swimming pool, then negotiate an extended warranty in the agreement, to give you until at least May 1, to inspect and have the seller be responsible for any damages. In addition, also negotiate a holdback of, say, $2,000 so that if a problem arises, the money comes out of that fund to fix it and you don’t have to chase the seller in court later.

Be careful about snow accumulating around the base of the home. It will be difficult for a home inspector to figure out whether the grading is likely to cause water problems in the basement later. Consider doing your own environmental audit to check for moisture behind any walls.

If the snow on the roof looks like it is evaporating faster than the snow around the house, it is likely a sign that there is not enough insulation in the home.

Check with your insurance company early as to whether you will have any difficulty obtaining insurance on the home; for example, by finding out whether there have been claims made in the neighbourhood about water damages or sewage backups.

Check whether snow accumulation makes it more difficult for street parking, as this may be the only parking available on certain streets. Also see how bad weather may affect your morning commute.
Check the last electric/gas bills, to determine how energy efficient the home is in winter.
People tend to hibernate and stay at home in the winter, so take the opportunity to get to know the neighbours before you finalize your purchase.

By being properly prepared in advance, buyers and sellers can negotiate a safe and successful winter home sale.
Read more stories from Mark Weisleder: click here.
Mark Weisleder is a Toronto real estate lawyer. Contact him at mark@markweisleder.com

Let me know if you would like a free home evaluation.  I would be happy to meet with you and discuss your neighbourhood sales and how best to market your home.   

Have a super day !  Cheers, xo

Ellen finds some very funny real estate listings !

I had to share this !!  Ellen finds some real estate listings that are just too good not to share.  :)  I hope you smile.  One reason why you need to make sure you hire a professional !  LOL

Avoid Costly Buyer Errors

Shopping for a new home is an emotional experience. It’s also time consuming and  comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:

• Paying too much
• Losing a dream home to another buyer
• Buying the wrong home

When you have a systematic plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:

Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor, can offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.

Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.

Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can protect your interests and make sure you have the correct clauses in your offer to protect your interests. 

Outdated survey
Before the purchase is completed, an updated survey is necessary if available.   This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbour’s new fence which is extending a boundary line, etc.).  Don't worry, if the Seller doesn't have one, now with Title Insurance, we will make sure your investment is covered.

Unexpected repairs
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Make the final contract subject to a favourable report.

Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.  I have mortgage brokers I can refer you to for a quick and easy over the phone pre-approval.

Need help to find your dream home?  I would be happy to assist you and make the process both enjoyable and profitable.  Call Michelle Makos 416-300-3004 or visit my Durham Homes For Sale Website.

Why Hire a Professional Realtor?

A qualified, competent real estate agent will help you navigate the myriad of decisions that arise when buying and selling a home. An agent provides value to the homeowner in many ways: 

• Pays for all marketing and advertising costs.
• Adds experience and expertise in all aspects of the sales process including marketing, financing, negotiations and more. 
• Handles all showings.
• Brings a network of known, trusted real estate professionals. If your agent doesn't have the answer, he or she likely knows someone who does.
• Always has your interests in mind so you always have someone on your side.
• Can handle and advise on all price and contract negotiations.
• Provides you with all the possible options and opportunities without holding back.
• Gives an unbiased, realistic view of your home and your options. Unlike buyers and sellers, an agent has no emotional attachment to property.
• Has the knowledge to help you ask the right questions.
• Being a third party, potential buyers are more likely to tell your agent the truth about your home, even if it is unflattering. This objective viewpoint will help you make the necessary changes to get your home sold.
• Your time is valuable. A real estate agent allows you to spend your time how you want.

We know your rights … do you?

You have the right to remain silent

Anything you say while un-represented could be used against you
during negotiations;

You have the right to be REPRESENTED

If you choose NOT to be represented;

Then all Realtors will work on behalf of the Seller during negotiations.

Let me help you !  You won't be disappointed.  

Michelle Makos, ReMax First Realty Ltd.

416-300-3004

OREA wants a Grow-Op Registry - I agree !

OREA renews call for grow-op registry - taken from REM Magazine.  I have also added my opinions in red.  :)


Front Page Jan 7, 2013 - Ninety-six per cent of Ottawa residents agree they want to know if the home they’re planning on purchasing was formerly used as a marijuana grow-op (MGO) or clandestine drug lab, according to a study by Ipsos Reid for the Ontario Real Estate Association (OREA).  I absolutely agree that this should be disclosed to any potential buyer even years after the fact. 

The poll found that almost one in four (24 per cent) of Ottawans report seeing or knowing of homes in their neighbourhood that have been used as MGOs or drug labs.  Whenever buying a home, it is always a good idea to talk to the neighbours, (you would be surprised what they know about what is going on in the neighbourhood) and also do a couple drive-bys.

“The prevalence of these homes in Ottawa is quite frankly, alarming,” says Pat Verge, an Ottawa area Realtor and member of OREA’s Board of Directors. “Homes used as grow ops and/or clandestine labs pose significant health and safety risks to individuals, families, and communities all over the province.” Agree again.  The health issues are significant.  Mould certificates must be obtained and alot of mortgage companies do not want to mortgage these homes.

Locally, the City of Ottawa approved a recent bylaw regarding the prohibition, inspection and remediation of former marijuana grow-ops. The bylaw mandates the registration of work orders on the title of a property used as a former grow op. The bylaw would allow home buyers to find out if the property was a former MGO by doing a title search before they complete the purchase.  Great idea !

Verge says: “Eighty eight per cent of Ontarians support the creation of a province-wide registry of former MGOs and clandestine labs. As consumers they have the right to know anything and everything about the home that they are planning on purchasing – especially when not knowing could put themselves and their family at serious risk.”   This is no different than disclosing a murder or a suicide in a home.  Buyers are ENTITLED to know the history about the home they are purchasing.  Always GOOGLE the address as well before you do an offer.  Sometimes you will be surprised what you will find out.

Exposure to mould and toxins associated with MGOs and clandestine drug labs can cause serious health problems, including allergic (immunological) reactions, toxic effects and infection. Toronto Public Health says that MGOs are distinct from typical types of premises contaminated with mould in that they have been used for criminal activities that may have resulted in the creation of environmental hazards, as well as electrical and structural hazards. The potential presence of known hazardous, toxic and flammable substances associated with clandestine labs presents an immediate and continuing risk to anyone exposed to these substances, says Toronto Public Health.

This is a great article.  I hope OREA is successful with this registry and I will defnitely be on board.  This is one reason it is important to hire a fulltime professional Realtor to represent your best interests and do their due diligence ... I have NEVER seen anyone I have listed or sold a house to that I would be embarassed to walk up to in a store or mall or wherever and catch up !  Why?  Because I always treat my clients like I would want to be treated.  Integrity !!!  Honesty !!!  It is the only way to do business.  If you have any questions about real estate, feel free anytime to contact me.   Have a super day !  Cheers xo