Interesting Take on the Housing Market

A few weeks ago at the TREB AGM, we had Benjamin Tal from CIBC speak about the current housing market and the similarities between Toronto and Vancouver.   A lot of interesting insight and graphs to take in but worth the read and thought I would share it with anyone interested.  Great insight in a confusing market.

When the Fog Clears - The Housing Market - CIBC Report from Michelle Makos

The New Reality ~ March 2017 vs. October 2017 - Durham Region

November Market Minutes :)

Hello Website Friends !!!

Well the TREB stats are out.  The market is still moving .. SLOWLY but moving.   Sales prices are about 2% above the sale prices in October 2016 but sales are down 26.7% from the month before.   

I watched this video/link on Global yesterday :  RICHMOND HILL WOMAN CAUGHT IN HOUSE SQUEEZE.

I am sorry, this is getting ridiculous... everyone was warned that the prices were going up too quickly and the bidding wars were getting dangerously high and that buying FIRM with no inspections or conditions was a slippery slope and people still wanted to buy buy buy.  Now when it is not going up leaps and bounds,  they are upset with mortgage brokers and realtors.   I warned people at the beginning of the year.  I was good with people selling that weren't buying in that frenzy to cash in and get out.  I told BUYERS to wait.  Don't buy now.   It didn't help my pay cheque but it was the honest thing to do.  NOW and in the next six months, we are going to see another slight drop in prices and then we will be balanced out. 

I think if you have sold your home and/or are a first time buyer, NOW is the time to get out there.  So many people NEED to sell because they are caught in a mess,  like this woman in the video and will take a lower price than listed just to get out of the mess they are in.    If you are selling right now, you need to make sure you working with a solid agent who knows the market and has great exposure on the web because that is where the buyers are going or my WEBSITE of course, because it is always up to date.. :)

So the new market watch is below for any of you that are interested in looking at it.

Market Report for October 2017 - Residential Resale from Michelle Makos

With the new mortgage lending rules changing January 1st, people are looking to buy now, especially those buying with 20% down who will have to qualify for higher rates.  It is believe it will effect about 20% of their buying power BUT on the flip side, I have heard that you can qualify through Trust Companies and Credit Unions and they are not subject to those qualificaiton rules... so this may be a loophole in the new rules... or they may change it before .. who knows.

All I know is use a professional Realtor who will advise you of the market and help guide you to make informed decisions.   Anyone who has worked with me will testify to that.  I would rather see us walk away, than over pay or get in a mess.  The stress and aggravation are not worth it.  I have been there.   1989/90 and I wouldn't wish it on anyone.  So learn from my mistakes.. :)   Have a great November everyone and if you have any questions or know of anyone moving or looking to buy, I am always happy to help.

Cheers !!
Michelle
Your Friend In Real Estate
ROYAL HERITAGE REALTY LTD.
Broker
416-300-3004

October 2017 Market Report on Resale Housing

Market Report for October 2017 - Residential Resale from Michelle Makos

2137 Blue Ridge Crescent, Pickering - SOLD

Don't Miss Out on This Beauty!

SORRY IT'S SOLD

www.2137BlueRidge.com

 Location, Location, Location!! Stunning Family Home In High Demand Brock Ridge Community. . This Pampered Home Has 3 Bedrooms, 2.5 Baths And Features Patio, 2-Car Garage, And A Terrific Finished Basement. Fresh Paint Everywhere. New Carpet. An Affordable Dream House. No Pets And Non Smoker. Nothing To Do But Move Right In. Bright Eat In Kitchen With W/O To Fully Fenced Backyard. $669,900.   Best deal in the neighbourhood.

DURHAM REGION HOMES STILL HOLDING THEIR OWN

I am happy to say Durham Region prices are holding their own.  Even doing better than some Toronto areas.  Our prices are still up 4% from the same time last year.... and a lot of other regions can't say that.   We have a lot of listings and our sales are down but not our prices year over year.   Yes we are not seeing the prices of Feb and March 2017 but those days are gone now.   Interest rates are start to increase slowly so anyone in variable rate mortgages might want to speak to the Broker about locking in.  I have a feeling we may see another one or two before the year is out.   I will keep you posted when the new rules come out this month and when they will take effect.  Until then, enjoy this wonderful October weather and call me if you have any real estate needs.  Cheers !

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

JUST LISTED - 76 FAIRWAY DRIVE, AURORA

You won't want to miss this showstopper !!  Backyard oasis.    Gorgeous 3+1 Sidesplit in a desirable neighbourhood.  Backyard is perfect for entertaining.  Lush landscaping, Cabana, Hot Tub and Privacy.  Inside we have a open concept home with designer colours, granite, skylight, pot lights, finished basement, 2 way fireplace and more.   This entertainers dream is beyond words.  Must be seen to be appreciated.  A real Beauty.  $1,098,000

 Check out the Virtual Tour

For a private showing or more information, contact Michelle Makos, Broker Owner @ Royal Heritage Realty Ltd., before it is gone.   905-831-2222.

37 Kimberly Drive, Whitby ~ SORRY IT IS SOLD FIRM

No More Fooling Around !!! This Fabulous Bungalow In Family Friendly Brooklin Is At An Unbelievable Price And Is Looking For It's Next New Owners. Meticulously Cared For By The Original Owners. 3 Bdrm, 50' Ft Premium Lot, Double Car Garage W/Access To Laundry Room On Main Floor. Fully Fenced And Private Backyard On A Pool Sized Lot. Open Concept. Everything Is On The Main Floor.  You Can't Beat This Price. Won't Last !

To book a showing on this beauty or to view the Virtual Tour, visit www.37Kimberly.com

today!   This home is waiting for you !  Call Michelle Makos at Royal Heritage for more details.

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.