Can’t Afford A Fancy Condo in Florida or Muskoka Cottage? How’s This for a New Trend?
March 4th, 2008 Categories: First Time Buyers, Halton Real Estate, Investing in Real Estate, Lighten Up, Oakville Real Estate News, Real Estate News
Lisa Valade, my mortgage broker, sent me this photo this morning. If you have champagne taste but a beer budget, might be something to think about!
Call Hilary to talk about your dreams for real estate, 905–599–3311.
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Was Real Estate a Good Investment 10 Years Ago? You Betcha!/A Review of the Last Decade in Canadian Real Estate
February 29th, 2008 Categories: Investing in Real Estate, Mortgages, Economics, Finance, Real Estate News
ReMax recently published a 26 page review of the last decade in Canadian real estate.
If you are interested in specific cities and regions and what’s been going on, this report provides a good synopsis, shows the statistics and the factors that have been influencing change in local areas.
Not too technical for the layperson to follow.
The accompanying press release issued by ReMax revealed some facts that you may find interesting:
1. What factors influenced the growth?
“Never before have we seen such a continuous run up in Canadian real estate. Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation.”
“Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada.”
2. How much did prices rise nationally over the decade and annually?
Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return.
(How’s that for a good return on investment?, says Boris)
3. Which city had the highest price increase?
Edmonton, Alberta, which saw a 203 per cent upswing in housing values - or an 11.7 per cent increase annually - with average price rising from $111,587 a decade ago to $338,636 in 2007.
Calgary ranked second second in terms of price appreciation at 189 per cent, Kelowna at 179 per cent, Saskatoon at 137 per cent, Winnipeg at 118 per cent, Victoria at 114 per cent and Greater Vancouver at 99 per cent.
3. Which province had the highest increase in unit sales?
Prince Edward Island, with the number of homes sold up 119 per cent in the 10-year period.
4. What about the impact of foreign buyers?
“Immigration and in-migration have played a serious role in jumpstarting residential housing markets, particularly in British Columbia, Alberta, and to some extent, Saskatchewan over the past decade.
At first, there was an influx of American buyers, especially in Canada’s coastal regions and recreational hot spots, as our southern neighbours took advantage of the almighty US greenback. Then the European and Middle Eastern purchasers flooded the market, buying up real estate considered ‘cheap’ by international standards. In recent years, there have been a growing number of purchasers from Mainland China. From a global perspective, there’s no question that Canadian real estate brings good value to the table.”
HILARY’S TWO CENTS:
One of the things that these solid stats reveal to me is the strength of the Canadian economy on which the Canadian real estate market is predicated. Since Canadian home prices when compared to global prices are still relatively low, Canadian real estate continues to be a good buy for foreigners.
The challenges being faced in the U.S. economy will impact our national housing market such that the housing price appreciation we have seen in the past decade will be moderated. However, at the risk of stating the obvious, (Economics 101) I believe we will continue to see price appreciation especially in areas where demand for housing continues to be strong and there is a limit to supply. This includes GTA, Oakville, Burlington.
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Ten Things I Learned from Barack Obama and the Democratic Debate
February 25th, 2008 Categories: Food for Soul and Spirit, Lighten Up, Real Estate News
Last night I kept flipping back and forth between the Oscar Extravaganza, in its 80th year, and the Democratic debate between Senators Barack Obama and Hillary Clinton.
It occurred to me that as real estate professionals we are running for election every day. The forces of competition result in us having to compete against other professionals every time we offer to help someone sell or buy a home.
According to the polls, those who watched the debate were more likely to vote for Senator Obama.
What are some of the keys to his growing appeal? I noticed a few things that I’ll tuck away as “good learning”.
- Confident but not cocky
- Comfortable and relaxed
- Didn’t try too hard
- Spoke slowly and clearly
- Assertive but didn’t put down his opponent
- What you see is what you get
- Unruffled by competition and criticism
- Passionate but not emotional
- Doesn’t take himself too seriously
- Gracious and sincere
When facing a competitor in any arena, these are winning qualities to emulate. WHAT DO YOU THINK?
For help in navigating the real estate maze, call Hilary today.
| Discussion: 4 Comments »
Canadian Recreational Property Buyers Skipping U.S. for Canadian Winter Properties
February 23rd, 2008 Categories: Fifty-five plus, Investing in Real Estate, Real Estate News
Trying to decide between buying a ski chalet or condo in Canada and property in Florida? Many Canadians are making the choice to buy closer to home.
“More Canadians are choosing to buy recreational homes in Canada” says a recent Report on Winter Recreational Property published by Royal LePage:
“While sunshine states such as Florida and Arizona have long enticed Canadians to purchase their winter retreats in warmer-weathered American cities, the uncertainty clouding the U.S. housing market has many Canadians favouring properties north of the border.
In fact, 36 per cent of Canadians who own a winter recreational property or who are considering purchasing one cite they are more inclined to buy a property in Canada than in the U.S. because of the economic uncertainty plaguing our southern neighbours.”
Here are some of the findings of the poll (conducted for RLP in January 2008 by Angus-Reid):
-
Strong demand combined with limited mountain-based properties has prices ranging from $180,000 to $850,000 in Quebec, $400,000 to $1 million in Collingwood, and $450,000 to $2 million in British Columbia for a standard detached, mountainside, three-bedroom chalet.
-
A shortage of listings in areas of high demand, such as Whistler and Fernie, has led to property prices appreciating by as much as 10 and six per cent, respectively, in the past year.
-
More and more European buyers are being attracted to purchase property in prime ski areas such as Mont Tremblant, Canmore, Whistler and Fernie.
-
Eight per cent of Canadians own a winter recreational property or are considering purchasing one in the next three to five years.
You can access the full report in pdf format.
While Canadian recreational properties are a good investment, there are still good buys to be had in Florida, Arizona and other U.S. states. Call Hilary for connections to good local referral partners in Canada and the U.S.
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THINKING OF DOWNSIZING? TAKE A LOOK AT TORONTO’S SMALLEST HOUSE!
February 19th, 2008 Categories: Fifty-five plus, Lighten Up, Real Estate News
My friend Ron Clarke, of RP Clarke Financial Services, sent me some photos of Toronto’s smallest house, reportedly for sale for $179,900.
In Canada we are not used to living in small spaces but in some parts of the world, like Europe or Japan, learning to live in very tiny spaces is commonplace.
Thought I’d share the photos, just for fun.
Here’s the front of the house.
The house is located near Dufferin and Rogers, in Toronto.
It was built in a laneway between two houses. House is just under 300 square feet.
Small covered patio in front.
This is the living room. Definitely cosy!
Here’s the kitchen and adjoining laundry room. How much counter space does one really need?
No mention of fridge. New washer/dryer and stove.
Bedroom comes with built-ins
and Murphy’s bed.
The back patio. Lemonade for two?
Looking to downsize? Give Hilary a call to chat about it.
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How Do I Get Into Real Estate Investing?
February 2nd, 2008 Categories: Investing in Real Estate, Mortgages, Economics, Finance, Oakville Real Estate News, Real Estate News
Have you always wanted to get into investing in real estate?
Most people agree that it is a smart thing to do.
With volatility in the stock market and low returns on fixed income products like GIC’s, clients often ask about how to get into buying an income property or vacation property. The opportunity to build passive income through real estate investing is attractive to most people. Also with longevity increasing, those of us planning for retirement often wonder if our retirement income will be sufficient to meet our needs for the long haul.
I have the idea to put together some seminars here in the Halton area that answer the need for pertinent and practical information on real estate investing.
Having worked in the seminar and conference business for a number of years in a prior life, I know that people only attend if there is a “need to know” not a “ nice to know” subject being covered.
I would appreciate some FEEDBACK that would help me to gauge interest in this subject from clients and the community as well as which specific topics might be useful to cover. I would bring in experts to speak on these areas. These seminars would be a value-added service I provide for clients, either free or for a very nominal fee.
TELL ME WHAT YOU THINK:
Some thoughts I have for topics:
1) Introduction to Real Estate Investing: The Nuts and Bolts
2) Demystefying the Investing Process
3) Investing in Vacation Property (Speaker from Blue Mountain/Collingwood Area, Cottage Property in Muskoka, Kawarthas)
4) Investing in Kitchener/Waterloo area
5) Buying Property in the U. S. (Florida, North Carolina, Arizona)
6) Buying Property outside North America
7) Financing Investment Properties (New rules and how to qualify)
8) Purchasing student rentals
9) Working with a Property Manager (Property manager speaker)
I would appreciate your suggestions for other topics or comments on those above.
LET’S HEAR FROM YOU!
If you want to connect with some of my contacts who are specialists in investing, give me a call!
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U.S. Home Prices Increase in Some States, Fall in Others
January 27th, 2008 Categories: Investing in Real Estate, Latest Real Estate Market News & Stats, Mortgages, Economics, Finance, Real Estate News
I came across an article from Inman Real Estate News this morning which has some interesting information for Canadians trying to figure out what’s going on south of the border.
A few observations:
1. Year over year, November 2007 vs. 2006, prices rose in 31 states, and fell in others.
2. States that experienced larger declines were Florida, Nevada, Arizona, California where prices had risen astronomically during the housing boom.
3. The chart below gives a quick overview of price increases and decreases in some major cities in the U.S.
4. Canadian Investors: Many clients have indicated they want to purchase in the U.S. in the markets where prices are declining, for investment purposes. This chart gives a good summary of valuable data.
| Statistical area |
12-month change Nov. 2007 |
|
Honolulu, Hawaii |
17.10% |
|
Salt Lake City, Utah |
10.53% |
|
San Antonio, Texas |
7.48% |
|
Austin-Round Rock, Texas |
7.47% |
|
Raleigh-Cary, N.C. |
4.62% |
|
Houston-Sugar Land-Baytown, Texas |
4.16% |
|
Dallas-Fort Worth-Arlington, Texas |
3.53% |
|
Charlotte-Gastonia-Concord, N.C.-S.C. |
2.62% |
|
Portland-Vancouver-Beaverton, Ore.-Wash. |
2.01% |
|
Seattle-Tacoma-Bellevue, Wash. |
1.23% |
|
New York-White Plains-Wayne, N.Y.-N.J. |
-0.51% |
|
Detroit-Warren-Livonia, Mich. |
-0.79% |
|
Philadelphia, Pa. |
-1.00% |
|
Chicago-Naperville-Joliet, Ill.-Ind.-Wis. |
-1.63% |
|
San Francisco-San Mateo-Redwood City, Calif. |
-2.06% |
|
Atlanta-Sandy Springs-Marietta, Ga. |
-2.59% |
|
New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. |
-3.30% |
|
Denver-Aurora, Colo. |
-3.30% |
|
Minneapolis-St. Paul-Bloomington, Minn.-Wis. |
-3.93% |
|
St. Louis, Mo.-Ill. |
-4.54% |
|
Boston-Quincy, Mass. |
-5.11% |
|
Miami-Miami Beach-Kendall, Fla. |
-7.23% |
|
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va. |
-7.77% |
|
Cleveland-Elyria-Mentor, Ohio |
-8.72% |
|
Tampa-St. Petersburg-Clearwater, Fla. |
-9.19% |
|
Phoenix-Mesa-Scottsdale, Ariz. |
-11.42% |
|
Orlando-Kissimmee, Fla. |
-11.49% |
|
Miami-Fort Lauderdale-Miami Beach, Fla. |
-12.11% |
|
Oakland-Fremont-Hayward, Calif. |
-12.89% |
|
Las Vegas-Paradise, Nev. |
-12.96% |
|
Los Angeles-Long Beach-Santa Ana, Calif. |
-13.16% |
|
San Diego-Carlsbad-San Marcos, Calif. |
-13.16% |
|
Riverside-San Bernardino-Ontario, Calif. |
-16.82% |
Click here for full article http://www.inman.com/inmanstories.aspx?ID=65908, and source of statistical data.
FOR MORE INFORMATION ON REAL ESTATE TRENDS AND INVESTING IN REAL ESTATE, call Hilary at 905-599–3311 or hshantz@gmail.com
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Canadian Interest Rates Anticipated to Go Down Further/No Cause for Alarm for Canadian Home Prices
January 24th, 2008 Categories: First Time Buyers, Latest Real Estate Market News & Stats, Mortgages, Economics, Finance, Real Estate News
Canadian Interest Rates To Fall Further
As world stock markets roil and the spotlight turns on U.S. Fed Chairman Bernanke to follow up Tuesday’s sharp 75 basis point rate cut with another cut next week, Canadians are wondering what will happen to interest rates here at home.
Last week I was hearing rumors that even if the Bank of Canada were to cut rates, some or all of the major Canadian banks might break precedent and not follow suit. However the relatively more conservative 1/4 point cut in rates this week by the Bank of Canada did result in all major banks reducing their rates accordingly, impacting mortgage rates.
The Bank of Canada has communicated that they are prepared to cut rates further. A communique I read today from the Toronto Dominion Bank Financial Group said we can anticipate a further 50 basis point (1/2%) rate reduction on March 4th with the potential of another 25 basis point cut on April 22nd.
This is good news for homebuyers.
Canadian Home Prices: No Cause for Alarm
The TD communique also indicated that despite tighter credit conditions, strength in domestic demand is expected to remain supported by continued income growth associated with increases in commodity prices since October, which has led to further gains in our terms of trade.
With respect to Canadian home prices, and the rationale for their 50 basis point prediction I quote from today’s TD report:
Home prices remain on the upswing in most major urban centers, and there is little concern that the Canadian housing market will start to mirror the slump in the U.S. In fact, we believe national home prices will rise at a rate of 5-7% in 2008, compared to a U.S. market that will likely absorb losses of around 5% or more. However, we believe that by the next meeting (i.e March 4th), data on the U.S. economy will provide a smoking gun, showing clear signs of a sharp economic slowdown. Given that inflationary pressures remain well in hand, a 50 basis point cut would provide much-needed insurance against the degree to which a U.S. economic downturn would lap onto Canadian shores.
Certainly, inflation will not provide a barrier to a more aggressive Bank of Canada. The central bank has indicated that increased competitive pressures in the retail sector and the one percentage point GST cut at the start of the year will cause both core and total CPI inflation to fall below 1.5% by the middle of this year before returning to their 2% target by the end of 2009.
Looking to buy or sell? Call Hilary at 905–599–3311 or click here to contact Hilary for more market information.
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Attention Builders and Homesellers: What’s Hot and What’s Not for Homebuyers
January 24th, 2008 Categories: Green Trends, Halton Real Estate, Oakville Real Estate News, Real Estate News
Builders and homesellers, make sure you are hitting the sweet spot with buyers!
Here are latest home trends for 2008 revealed in annual survey by Mark Nash, real estate author, (Nash surveys 886 real estate agents in U.S. and Canada).
What’s Hot in 2008
Destination Bathrooms The master bath has evolved into “the home getaway with multiple task areas, featuring freestanding or “throne” bathtubs in the center of a soaking room, multiple flat screens TVs and wireless Internet so you don’t miss anything as you move from bathing to grooming to lounging. If the bathroom is outfitted for serving bars, wine coolers, espresso machines and grazing snacks, all the better. (Definitely seeing this trend in Oakville luxury homes)
Pet Showers The kitchen or work sink is out for the dog bath. Dedicated dog showers are an emerging trend. Be it in a mud or utility room, garage corner or basement, dog lovers want a place to clean their pooches after a visit to the neighborhood dog park. Common dog showers feature a 3′ x 3′ shower base, surrounded by ceramic tile 4 feet up the wall. Pet showers are all about convenience: Fido can step in, eliminating the master’s need to lift. (Seeing these in many $1 million+ homes in South East Oakville)
Monitoring and Controlling with Hand-held Devices. Forgot to turn off the coffee maker, close or open the blinds, turn the heat down or the air conditioning up? The latest technology lets hand-held devices open or close the blinds, turn lights on or off, or let Fido out the electronic pet door. The home owner can be around the corner or across the country and still determine what’s going on at home.
Home Elevators Catering to the aging baby boomer population, home elevators are another trend. You don’t have to move or downsize when you get older. Simply have a mini-elevator installed and you’re all set for the future. No more unsightly and very 1970s chair-on-the-rail-system for these financially flush, forward-thinking home buyers.
Outdoor Living Spaces Nash says outdoor living spaces that look interior are a very hot item for 2008. These spaces are decked out with massive fireplaces, flooring, walkways, custom kitchens and even artwork, fabrics and finishes that will hold up against Mother Nature.
New Home Energy Options The environment is a big part of the home scene. Eco-friendly homeowners are also looking for new home energy options. More and more builders will be employing out of the ordinary energy sources, such as solar panels and windmills. Using materials and systems that help protect the environment are not just a fad, notes Nash. “Home buyers are asking about how their potential new home can save the planet,” he says. “It’s more than a trend, it’s a convenient truth.”
Off-grid homes. Solar panels, windmills and inverters are here to stay in a big way. With brown-outs and power line-damaging storms on the increase, buyers in 2008 will look for hybrid home-energy options. Even being partially off-grid beats getting expensive power from coal-fired utilities to these eco-energy users.
Floating homes. If your ‘hood has calm, protected waters, you’ll soon have floating homes that look like conventional, soil-situated structures. From Louisiana to Vancouver, floating homes are being chosen as primary home. Plus, watching sunsets are a more enjoyable and greener alternative to lawn mowing.
Concealed appliances Buyers bypass matching cabinet panels that are used to disguise the ubiquitous refrigerator and dishwasher. Hinged and pocket doors are the latest way to integrate visually those boxy necessities and make the kitchen more non-traditional and less functional-looking.
What’s Not
Formal Living Rooms The living room belongs to a bygone era. The great room has officially replaced the traditional living room. Homeowners are favouring more of an informal open space that combines the eating, cooking and living space in one. Nash refers to the living room as the “forced museum”. (In viewing homes with buyers, we often see the living room being used as work-out space, pool room, home office, craft or hobby place.
Soaring cathedral ceilings are now being seen as wasteful. Buyers prefer ceilings between nine and 11 feet in height. If you can’t add a loft in a soaring room, “downsize me” height-wise, buyers say.
Bigger Is Not Better Goodbye to what Nash calls the “McMansions”. Huge homes that boast massive square footage are out. In 2008, homeowners are looking for quality, not quantity. Nash says size doesn’t matter as much as quality finishes. (On that note, we are seeing custom rebuilds in Oakville sit on the market if finishings, fixtures, workmanship are not of a high standard.)
Mosaic Tile and Retro-70’s Look Mosaic tile is on its way out. Intricate, detailed tile is very costly and time-intensive to remove and it really reflects the previous owner’s taste. In general the retro-70s chic look is becoming a thing of the past.
Need help getting your home ready for sale? Click here to Contact Hilary and her home-selling team today!
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How to Ensure a Quick Sale for Top Dollar? Contact Hilary Shantz, Halton Real Estate Agent
December 26th, 2007 Categories: Client Stories and Testimonials, Halton Real Estate, Oakville Real Estate News, Real Estate News
Even over the yuletide season, the wheels of real estate continue to turn.
Here are photos from a home sold last week by Hilary!
How to ensure a quick sale for top dollar?
1) Home Staging: Let Hilary bring in her expert staging consultant Karen Kostyshyn of Home Interior Transformations to prepare your home to wow potential buyers. Karen brings in “props” and with her eye for detail and current decorating trends takes an ordinary home and transforms it into one that looks like a “model home”. (Hilary includes the cost of professional staging in her services offered.)
2) Decluttering: If you are downsizing or have a lot of unnecessary items in your home, talk to Hilary about including a declutttering session in your home selling strategy. A professional organizer can help in sorting stuff out and taking extraneous items away for donation, dump or even resale. Editing your home professionally will make it look more spacious and appealing! (Refer to my article on how buyers buy: you need to have them at hello.)
3) Professional Photographs: Then let Hilary bring in aprofessional photographer to provide just the right lighting and multiple shots to showcase the home to advantage, virtual tours, slide shows. This attracts those who are shopping on the internet. Nowadays some 80% of home buyers start their search online.
4) A Savvy Marketing Plan Unique for Your Home, including exposure to multiple home selling sites on the internet and advertising in the Real Estate Book. Your home will have its own url for “rich detail” so that buyers can be sold on the home even before actually viewing it.
5) Pricing it Right: To price a home right, you need to know what has sold recently in the neighborhood and for how much, current economic factors that affect the forces of supply and demand, number of other homes currently for sale in that category, and how they have been priced (competing homes), aseasonal factors and their impact on the market, and just basic “intuition” gained from experience, and a “feel for the market”.
Did you know that “Real Estate Spring” begins the second week of January?
Call Hilary 905–257–3633 and her Home-Selling Team to talk about preparing your Halton home for sale!
| Discussion: 6 Comments »
Canadian Real Estate Forecast for 2008
December 19th, 2007 Categories: Latest Real Estate Market News & Stats, Mortgages, Economics, Finance, Real Estate News
Oakville Real Estate, Burlington Real Estate, Halton Real Estate, Canadian Real Estate
I am reprinting the Royal LePage Market Survey Forecast for 2008, released this week by Phil Soper, President of Royal LePage.
It is a good summary of the main economic factors that are influencing the Canadian residential housing market. Note the chart showing price increase broken down by city, from 2006 to 2007, and the forecast for 2008.
In Oakville, Burlington, and the Greater Toronto Area, prices rose on average 6.6% from 2006 to 2007. This was less than the Canadian average which was 10.7%. For Canada and GTA Royal LePage is predicting 3.5% increase in house prices for 2008. I read recently that ReMax is predicting a 5% increase for the Greater Toronto Area. Royal LePage is traditionally quite conservative in its predictions.
Following is the report:
Solid economic fundamentals should allow Canada’s residential real estate market to chart its own course and maintain its buoyancy throughout 2008
TORONTO, December 17, 2007 – After experiencing an exceptional year characterized by strong average house price appreciation and record breaking unit sales, the momentum from 2007 is anticipated to carry over and position Canada’s real estate market for steady, yet moderate growth in 2008, according to the Royal LePage 2008 Market Survey Forecast released today.
Nationally, average house prices are forecast to rise by 3.5 per cent to $317,288 in 2008, while transactions are projected to fall slightly from this year’s record high unit sales to 500,927 (–4.0 %) unit sales in 2008. Despite the year-over-year reduction in unit sales, the number of homes trading hands in 2008 is expected to remain higher than in all years prior to 2007.
“Canada’s housing market in 2008 should continue to thrive on a balanced diet of strong economic fundamentals, including high levels of employment, resilient consumer confidence, modest levels of inflation and the relatively low cost of borrowing money,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services. “Canada is currently enjoying one of the longest housing market expansions in history; however, as we move into 2008 it is anticipated that slowly eroding affordability will cause demand to ease, allowing the market to move toward balanced conditions, with lower levels of price appreciation, and fewer homes trading hands.”
With the most affordable major market homes in Canada, residents of Regina and Winnipeg are forecast to drive the greatest increases in house prices in 2008, as job opportunities and in-migration continue to soar in each city. While Calgary and Edmonton will continue to boast healthy economies and high levels of home sale activity, the excessively fast run-up of home values in 2006 and the first half of 2007 priced people out of the market, causing inventory levels to rise late in the year. Alberta home price increases will be much more moderate in 2008 as the regional market continues to adjust to the new house value reality.
With the country’s highest home prices, Vancouver’s steadfast market will continue to expand on the back of a strong provincial economy. As the city readies itself for the 2010 Olympic Games, there will be an abundance of new jobs created.
Ontario and Quebec markets are anticipated to maintain their relative strength and vibrancy throughout next year, weathering stormy financial markets and adjusting well to the high value of the Canadian dollar. The services based industries that have become the backbone of the Toronto and Montreal economies have tolerated the rise of Canada’s dollar to parity very well, despite increasingly price competitive offering from overseas markets.
In Atlantic Canada, a slight depletion of inventory coupled with high immigration levels will see the housing market growing at a strong and steady pace – Halifax is expected to have higher than national average growth in 2008.
The frenzied pace of price inflation that has characterized the real estate market over the past two years in the resource rich west were unsustainable and should ease substantially in 2008. In Central Canada, price increases peaked in late 2005, and have been moderating since.
From coast-to-coast, the homebuyer demographic is anticipated to swell with first-time purchasers, as many flock to take advantage of recently reduced lending rates, longer amortization periods and the resultant manageable mortgage payments.
Added Soper: “The year ahead presents opportunities for those people who have shied away from the frenetic real estate market of the past few years, with its bidding wars and unconditional offers; while prices should continue to rise, they are expected to do so at a more reasonable pace. Canada’s economy is strong, and the desire for home ownership remains a vibrant and attainable goal – real estate remains a solid long term investment.”
2008 Market Survey Forecast
|
Market |
08/07% |
2008 Forecast |
2007 Projected |
2007 / 2006 |
2006 |
2005 |
|
Halifax |
6.9% |
$233,000 |
$218,000 |
7.3% |
$203,178 |
$189,196 |
|
Montreal |
3.5% |
$238,000 |
$230,000 |
6.6% |
$215,659 |
$203,720 |
|
Ottawa |
4.2% |
$285,000 |
$273,500 |
6.2% |
$257,481 |
$248,358 |
|
Toronto |
3.5% |
$388,500 |
$375,500 |
6.6% |
$352,388 |
$336,176 |
|
Winnipeg |
11.4% |
$190,000 |
$170,500 |
12.2% |
$151,983 |
$134,028 |
|
Regina |
15.4% |
$188,600 |
$163,500 |
24.0% |
$131,851 |
$123,600 |
|
Calgary |
4.0% |
$429,000 |
$412,500 |
19.0% |
$346,675 |
$250,832 |
|
Edmonton |
1.0% |
$341,000 |
$337,500 |
34.5% |
$250,915 |
$193,934 |
|
Vancouver |
4.0% |
$587,500 |
$565,000 |
10.8% |
$509,876 |
$425,745 |
|
CANADA |
3.5% |
$317,228 |
$306,500 |
10.7% |
$276,974 |
$249,201 |
Highlight of 2008 Trends
Strength of the Canadian Dollar
The position of the Canadian dollar hovering at parity will continue to bolster the country’s high consumer confidence, and is anticipated to translate into continued growth in consumer spending. The negative impact of the high dollar on the country’s manufacturing sector for export trade will be mostly felt in Southern Ontario and Quebec; however, both regions are demonstrating considerable resiliency, with a concerted effort by both governments and industry underway to improve productivity and improve international competitiveness.
U.S. Economy
In sharp contrast to the weakening U.S. economy and deteriorating housing market, Canada’s economy and housing market continues to demonstrate staying power. Canadian mortgage products are markedly different from those offered in the U.S., and the sub-prime market makes up a significantly smaller portion of the overall Canadian mortgage market. It is unlikely that the residential real estate industry in Canada will have to endure the kind of sharp correction underway south of the border.
Employment
Employment rates across the country are expected to continue at the current very high levels, driven by the robust energy and general natural resource sectors specifically, and a very healthy services economy in general. In the year ahead, job market growth is anticipated to continue, especially in Regina, Winnipeg and Halifax.
The move by the Bank of Canada to reduce its overnight target-lending rate by a quarter of a percent in December 2007 will bode well for first-time buyers planning to enter the market in 2008. The relatively low current interest rates, and the possibility that rates could fall even lower in response to moderating inflation and lower rates in the U.S., will continue to attract new buyers to the housing market.
Call Hilary and Her Home-Sellling Team for assistance in buying or selling in Oakville, Burlington, Mississauga, Milton or Georgetown.
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Buying Your First Home? New Ontario Land Transfer Tax Rebate Puts Money in Your Pocket
December 14th, 2007 Categories: Client Stories and Testimonials, First Time Buyers, Oakville Real Estate News, Real Estate News
Today I went to visit a young couple in their new home. They were very happy to have their very own home after renting for years.
So I was glad to read the good news today that first time buyers in Ontario will find it just a little bit easier to get into the market.
Effective today, the Ontario government is giving all first-time home buyers a break on land transfer tax by expanding the Land Transfer Tax Refund Program to include purchases of resale homes.
Ontario Finance Minister Dwight Duncan announced that first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.
The expanded Land Transfer Tax Refund Program for First-time Home buyers is part of a package of new tax initiatives that are expected to provide $1.4 billion in provincial tax relief for business and people over three years.
“The government is making strategic investments in people, communities and infrastructure to strengthen Ontario’s economic advantage and help manufacturers and other sectors challenged by current economic conditions” said the press release issued yesterday.
If you are a first-time home buyer in Oakville, Burlington, Mississauga, Milton, Etobicoke or Georgetown, call Hilary to guide you through the process.
Note, I’ve been getting inquiries requesting more details about this rebate so here are the practicalities:
- Enter into the Agreement of Purchase and Sale after December 13, 2007 (December 14th or later). The date that you entered into the Agreement of Purchase and Sale is considered to be the date at the top of page 1 of the Agreement, NOT the date that all the conditions were fulfilled.
- The rebate hasn’t passed through legislation yet, it’s just a proposal - Passing through legislation takes 1-6 months usually – However, an affidavit is going to be released Friday Dec 14th or Monday December 17th to allow purchasers to apply for the refund, so the likelihood of approval through legislation is pretty good.
- You are allowed up to 18 months from closing to apply for the refund.
- You have to pay the LTT on closing and then apply for the refund thereafter.
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Buyers Buy with their Hearts First, Not their Heads
November 24th, 2007 Categories: Lighten Up, Real Estate News
Research confirms what I’d suspected: Buyers are highly irrational beings.
![IStock_000003077171XSmall[1]](http://www.theoakvillebuzz.com/wp-content/uploads/2007/11/istock-000003077171xsmall1-small1.jpg)
An economist might assume buyers make logical decisions about features, benefits and reasons to buy. As an observer of home buyers’ reactions first-hand (as well as my own) I say ”Not so!”
This was confirmed lately when I read some new research on Buyer Psychology. A group of scientists from CalTech, Carnegie Mellon and MIT reviewed studies examining how people buy. Their conclusion:
“Buyers buy with their hearts first. When money changes hands, the primitive, emotional part of the brain calls the shots. Buyers buy with their heads second. Logic comes in afterwards as the brain justifies the decision it’s already made.”
Salespeople need to pay close attention to this as well as home sellers. A few things you should know:
1. Little details matter just as much as big things.
You need to tug at the emotional heartstrings. While a new roof might be an important factor, a master bedroom that has a well-dressed bed with luxurious towels in the ensuite might make more of a difference in the buying decision.
The first home my husband Wayne and I purchased as newlyweds expecting our first child illustrates this. (I was not a REALTOR at the time.)
When we entered “the home”, the right music was playing, the table was set for dinner with cloth napkins and dinnerware. I was “really feeling this home” and then I saw the white trellis on the back patio with a glorious red rose bush clambering up it. That did it! My heart had connected with this home emotionally, and the decision was made.
(Two winters later unseasonably low temperatures resulted in the demise of the rose bush. In our inexperience we had not even realized that we had overpaid and that the house was too small…..)
But just a few years ago when we purchased our current home a similar thing happened. My husband entered the house and saw the spectacular fall panorama of trees behind our property. He was instantly smitten and decided to put in an offer before viewing the upper level or the basement.
2. It’s a seduction process: “You need to have them at Hello”
Traditional selling approaches focus on logic and reason, features and benefits. But if you engage with homebuyers at that level alone, you could be wasting your time.
It’s all about the emotional feeling they get when they first enter the house.
Have the lights on, the music playing, the scented candles, create the atmosphere! Appeal to all five senses. Cookbook open on the counter, textured throw casually draped on the chesterfield, fresh flowers on the hall table, luxurious soaps and bath salts in little bottles in the master ensuite, crackling fire in the family room, urns filled with flowers on either side of the front door, seasonal touches where possible.
Remember, you’re not just selling a house, you’re selling a lifestyle.
I make sure all homes I sell are carefully staged. My stager Karen Kostyshyn of Home Interior Transformation is exceptional. She and I work together to put those extra dollars in your pocket.
3. Don’t give them a reason to say no!
Your home must be scrupulously clean, and preferably in move-in condition.
I was in a very nice, almost new home, the other day, which showed very well and was decorated in the latest designer colors. The buyer was smiling and nodding approvingly as she wandered through, until she entered the ensuite bathroom and saw a few traces of mould growing in the shower tiles. The spell was broken. One bottle of Tilex and that negative impression could have been avoided.
The sellers market we have been experiencing over the last few years, has given way in most areas in the GTA and surrounding areas to a “balanced market’ with more or less the same numbers of buyers and sellers.
Sellers, more than ever, you have to know how to woo your buyers. This starts even before they enter the home, with the photos you show on the internet. One home that we staged and marketed this year was so appealing that I received a call from the buyer’s agent saying they were bringing a signed offer at 9 p.m., without having seen the home on the inside. I use a top-notch professional photographer, who takes up to 70 photos, depending on the size of the home, which I post on my website, in addition to the MLS photos.
Call Hilary Shantz and her home-selling team at 905-599-3311, to advise you how to prepare and market your home to capture the buyers’ hearts and their pocketbooks!
| Discussion: 10 Comments »
Landmark Oakville Historic Home for Sale
November 14th, 2007 Categories: Client Stories and Testimonials, Downtown Oakville, Historical Oakville, Oakville Real Estate News, Real Estate News
Exceptional Restored Georgian. Asking Price $2,695,000. Ideal for Growing Family or Bed and Breakfast.
Like Being in a Trisha Romance Painting
This home has a wonderful sense of time and place. ”I feel like I just stepped into a Trisha Romance painting” I tell Francine as she pours me a cup of tea in her sunny kitchen. The house reflects the owner, who is gracious, warm and passionate about history.
“My husband and I love old houses. We fell in love with this one” says Francine Landry. ”We loved raising our kids here and entertaining all our family and friends. Now that the kids are grown, it’s time to pass it on so another family can enjoy it.”
Francine and her husband undertook a faithful restoration, with uncompromising historical integrity. They were careful to retain the classic Georgian look and feel, but incorporated new mechanicals, new bathrooms and a modern kitchen, family room and mudroom.
Understated Elegance, Yet Casual and Comfortable
The house has six bedrooms, five bathrooms, four fireplaces. I love the layout. Large well proportioned rooms and an open kitchen with breakfast bar, eat-in area with expansive windows and a “keeping room” with fireplace, create “the great room effect” popular with families today. The 5400 square feet includes an in-law suite on the third floor.
Unparalleled Location, Walk to Downtown, the Lake and Oakville Marina
Where else but Oakville can you be in the heart of the downtown core and still enjoy leafy neighborhoods and spectacular lakeviews from your balcony?
Lakeside Park is only a few feet away. The shops, boutiques and restaurants of Downtown Oakville, the Oakville Club and the Oakville Marina just a stone’s throw.
Ever Wanted to Have a Parterrre Garden?
This home boasts the finest formal gardens. Thoughtful planning by renowned landscape architect
Christopher Campbell has created privacy and garden rooms separated by stunning shrubs, mature trees, arbors and trellises. Several stone walkways and terraces enhance the natural landscape.
A Landmark Home in Old Oakville
Here`s a little bit of Oakville history for you.
The original home was built in 1839. In preparation for his marriage to Mary Jane Chisholm, daughter of William Chisholm (founding father of Oakville), Peter MacDougald purchased the original house and two adjoining lots in 1854.
He named it “Glenorchy” (his parents were Scottish immigrants) and he and Mary raised three children there.
MacDougald later became Mayor of Oakville. I did a little research into the life and times of Peter MacDougald. One source said “During his tenure of nine years as Mayor, the Citizen’s Band gave concerts on many occasions on the lawns of Glenorchy to which the townspeople were invited.”
I can hear the lilting sound of bagpipes somewhere off in the distance, as I finish my “spot of tea”.
(Did you know I was born in Edinburgh and lived there as a child?)
A few more photos of the living room, formal dining room, great room, original Mayor’s office, garden, renovated bathroom and master bedroom, with original coal-burning fireplace.
Want to find out more? There is so much more to say about this home.
Call me, I would be happy to send you more photos or show it to you in person.
| Discussion: 7 Comments »
Hilary’s article on 50+ Real Estate, Published in the Oakville Beaver
September 17th, 2007 Categories: Fifty-five plus, Real Estate News
I wrote an article which appeared in The Oakville Beaver a couple of weeks ago. Here it is:
50+ Clients Have Unique Real Estate Needs – Realtors Specialize in Counseling Mature Property Owners
Today about 32% of Canada’s population are over 50 years. And this 50 plus group as a whole is the fastest growing demographic segment in society, with 44% owning at least one home.
Seniors today can expect to live 15-20 years longer than earlier generations. As life spans increase so also the options for how to spend the later years, and the challenge of planning retirement carefully so funds can last as long as they do.
What are some of the things Realtors with the SRES designation are learning about working with this segment?
1. Mature clients want to be counseled not sold. They value a “high-touch” approach.
2. Seniors need time to make decisions. Decisions to sell the family home and downsize or move to other forms of housing will be made more slowly.
3. Many family members may often be involved in the decision and all family members need to be comfortable that the Realtor is acting in the very best interest of their loved one. Family members may also be concerned about the inheritance.
4. One of the keys to assisting seniors is helping them to feel empowered in the decisions they are making. As people get older there is a sense of loss of control which can make it harder to make any decision. Realtors can help to “empower” their clients by carefully explaining and presenting all the options that are available or providing suggestions as to what to do with the items in the home that may not fit or be suitable for the new situation they are contemplating.
5. Of great benefit and reassurance to seniors is recommending other trustworthy professionals like a financial advisor, lawyer, accountant, and providing a “one-stop team service approach” for the family.
6. Boomers and their parents need to be encouraged to make investigations and decisions about their “next steps” prior to an urgent need arising to precipitate a change.
7. Many seniors are extremely tech-savvy and comfortable with using the Internet. Others are not.
8. There are many sub-markets in this segment of the population, each with differing needs and wants. Like all people, seniors should not be stereo-typed or pre-judged. The Brondesbury group, A Canadian research firm, has identified several lifestyle categories that retirees fall into: Happy homebodies, social butterflies, super shoppers, go-getters, community minded, travelers, worker bees (those returning to work after retirement).
9. Once mature clients find professionals they can trust, they are generally more loyal than Generation X and younger cohorts.
10. Mature clients enjoy long-term relationships, and are not fast-close one time customers, which is often the case with clients under forty.
This article was written by Hilary Shantz, MBA, SRES, Sales Representative, Royal LePage Real Estate Services Ltd., Oak Park office. For more information about real estate issues impacting seniors , see Hilary’s new blogsite www.the oakvillebuzz.com or contact her at 905-599-3311, hshantz@cogeco.ca
My broker also posted this announcement in the Oakville Beaver about my new SRES designation.
Click here for other articles on 50+ real estate.
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First Home in Burlington, Congratulations Kevin and Barbara!
September 17th, 2007 Categories: Burlington Beat, Client Stories and Testimonials, First Time Buyers,