Frank Steinhausen, Broker
FSteinhausen@REMAX.net
RE/MAX Rouge River Realty Ltd., Brokerage
Phone 905-428-6533
Fax 905-668-1850
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Realosophy - Pickering Schools, Home Prices and Neighbourhood Photos
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Winter Home Maintenance
January 20th, 2012 Categories: Real Estate News
It may be cold outside, but it’s no time hibernate when it comes to home maintenance. Have you ever wondered how some friends or neighbours live in older homes that are still in good working order? This isn’t just a lucky coincidence.
Houses require careful attention, especially in the Winter, in order to keep in good working order. If you take the extra time each season to check your home over and perform the necessary maintenance, then you’ll be sure to have a sturdy home for years to come.
First, it’s important to keep your family safe and warm when it’s chilly outside. Do a twice yearly check on your windows and doors for air leaks. Under most circumstances you can easily fix these with caulking.
Are your windows in need of a more energy efficient upgrade? Have you thought about installing storm windows and doors? These are important questions to ask yourself. If you have older, non-insulated windows it may be time to replace them.
If you find leaks, then take the necessary action to fix them pronto. You may find that some doors continue to leak air even after you’ve made them “air-tight.” This means it is time for Plan B. Storm doors work wonders for keeping out the elements. Many stores also sell draft blockers that sit at the bottom of you doors.
Next, schedule a time to service your heating system. Central heat and air units need to be checked over. When a unit is well-serviced it will save you fuel and thus money.
If your home is older, then you might consider a trip to the attic to check ductwork. You never know what critter has chewed through ducts or what parts have become disconnected.
While you’re in the attic take a hard look at the state of your insulation. Is it adequate for your region? Is ductwork well-insulated? Older homes can sometimes be completely devoid of attic insulation. If so then it’s time to bring in some reinforcements. Insulation is relatively inexpensive and can save you big in the long run.
Do you heat using a wood burning fireplace? Is it imperative for your safety to have your chimney cleaned and checked multiple times during the Winter season if you use your fireplace regularly. Chimney fires happen all the time.
There are smaller issues to attend to as well. Did you know that your ceiling fans have two settings for the blades? You want to be sure to reverse your fan in the Winter so that it pushes the hot air (which naturally rises) back down into your living spaces.
Gutters become full of leaves and other debris. If you fail to clean your gutters they can begin to hold water which can eventually rot away the siding and roof of your home.
When the weather drops below freezing you need to keep your pipes from freezing. Let faucets drip and unhook all outdoor hoses.
Finally, every responsible homeowner is stocked with the proper tools. Keep sand or salt on hand to de-ice slipper steps and sidewalks. Invest in a heavy duty snow shovel or snow blower.
Your home is your biggest asset and literally keeps a roof over your head. Be kind and take care even during the chilly Winter months.
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Bank of Canada holds Rates for the 16th straight Month…
January 17th, 2012 Categories: Real Estate News
Canada’s key interest rate will begin 2012 exactly where it’s been since September 2010 – unchanged at 1.00%.It’s the longest stretch on record without a Bank of Canada rate change.
Economists didn’t expect the BOC to move rates at this meeting. Instead, they were looking for any change of language in the Bank’s official statement. As usual, there were a handful of conspicuous statements in that release. The Boc said:
- “The outlook for the global economy has deteriorated (since October).”
- “…very favourable financing conditions are expected to buttress consumer spending and housing activity.”
- “…the ratio of household debt to income is projected to rise further.”
- “The economy is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October.”
- “With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada.”
Analysts reading between the lines say the Bank’s statements imply low odds of further rate cuts anytime soon.
From a mortgage standpoint, the immediate result of all this is that prime rate should remain at 3.00%. That means payments stay the same for existing variable-rate mortgage holders.
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Top 3 Reasons to Buy a Home in 2012
January 13th, 2012 Categories: Real Estate News
This statement is still true more than 50 years later. There are many reasons to take pride in homeownership such as:
- Appreciation – Buying a home now (at the current rates) can almost ensure your home’s appreciation in the future. Mortgage rates are near historic lows and home prices in many parts of the country are down. This is the perfect recipe for home appreciation.
- Equity Building – Many factors such as credit qualification, loan flexibility, and annual percentage rate (APR) contribute to the final decision of what type of mortgage loan best fits your goals. Yet, a new trend being used by some homeowners is to actually add money to their monthly payment to decrease the principal balance of their loans at a much faster pace. This trend is called equity building. Equity builders usually select a home loan with a lower interest rate (and a shorter term loan such as a 15-year fixed) to help build equity faster. This rapid payment process allows borrowers to:
- Pay off the principal balance faster
- Lock in near-record-low interest rates
- Shorten the length of their home loan
- Own their home faster
- Pay substantially less mortgage interest
Equity building is a beneficial trend that’s becoming more and more popular with fiscally responsible homeowners. Also, home equity is the largest single source of household wealth for most Americans.
- Pride – Homeownership offers many benefits to many different types of people. For some homeowners, playing your music as loud as you want and painting the walls the color of your choice is a perk. No matter who you are, homeownership is a purchase, commitment, and journey that’s sure to bring you pride.
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Top 10 Tips for Sellers
January 12th, 2012 Categories: Real Estate News
Today’s sellers may face challenging conditions in many markets, but that doesn’t mean choosing to sell is a bad idea. There are many reasons to sell and most are good ones.
Here are ten tips to get you on your way to getting your home sold.
1. Hire a Professional. This is no time to be navigating the rough waters of the real estate market on your own. You want someone who can help you accurately price your home, bring in potential buyers, handle contracts, and market your home to the masses.
2. Fully Disclose. Are you selling because your current home needs more work than you can handle? Are there infestation problems you’d rather not talk about? You must disclose all of these facts to potential buyers. If they find out after the fact that you withheld information you could be in a whole heap of trouble.
3. Be Realistic about Pricing. It is much wiser to price a home correctly from the start of the selling process than to have an overpriced home sit on the market for months only to have to do a price reduction. You get much more traffic on a well-priced home and newly listed home.
4 . Detach Emotions. Sellers may have the inclination towards adding sentimental value to a home. They see the memories and work they’ve put into a property and think every buyer should recognize this. This kind of attachment will make it harder to make smart and timely decisions about offers.
5. Be Involved. Yes, you’ve hired a professional to handle the legwork and legality of your sale, but you’ll rest much easier at night if you understand the process and all that is going on. Be sure to have regular conversations with your agent.
6. Stage your Home. Staging is a perfect way to help buyers see the true potential of each room. This may mean, however, that you have to tone down your own style and pack away any clutter or extraneous decor.
7. Don’t Hover. Sellers can put a lot of heart and soul into staging and getting a home ready for the market. They might want to hang out during an open house. Resist the urge. This makes it very uncomfortable for buyers. So, during showings of any kind, be sure to make yourself scarce.
8. The Next Step. Are you going to be buying another home? Have you decided to rent? Under normal sales, you’ll have plenty of time to make arrangements, but you also might get a buyer who needs to move in right away. Be ready to take your next step.
9. Be Flexible. It’s no secret that today’s market can be challenging for many sellers. Some markets have seen sharp price declines and shallow buyer pools. This means you need to be flexible on both price and terms. Don’t compromise on your bottom line, but understand that you must be willing to negotiate.
10. Positivity. Focus on the good in today’s market. Pull your attention to the feedback you get from your agent and prospective buyers! Most of all, don’t get discouraged. You will find a buyer!
Selling in today’s market can be a tough, but rewarding. So, whether you’re selling to move up, downsize, avoid foreclosure, or are following a job, be sure to keep these ten tips in mind for smooth sailing.
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Second Best Year on Record for Sales!!!
January 10th, 2012 Categories: Real Estate News
Greater Toronto REALTORS® reported 4,718 transactions through the TorontoMLS® system in December 2011. The December result capped off the second-best year on record under the current Toronto Real Estate Board (TREB) boundaries. Total sales for 2011 amounted to 89,347 – up four per cent in comparison to 2010.
“Low borrowing costs kept Buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said TREB President Richard Silver. “If Buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area,” added Silver.
The average selling price in December was $451,436 – up four per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average of $431,276 in 2010.
“Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer.
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Housing correction big risk for Canada
December 30th, 2011 Categories: Real Estate News
The Canadian housing market is at risk of a price correction and remains the chief domestic vulnerability to the country’s economy in the new year, according to two new reports.
They warn of an overvaluation of Canadian housing by 10% to 15%, aggravated by rising levels of household debt.
Entering a year laden with potential global economic shocks, Canadian authorities need to beware of housing risk as the chief domestic risk, the International Monetary Fund warned.
“Adverse macroeconomic shocks, such as a faltering global environment and declining commodity prices, could result in significant job losses, tighter lending standards, and declines in house prices, triggering a protracted period of weak private consumption as households reduce their debt,” the IMF said in its annual report on the Canadian economy.
Should the European sovereign debt crisis destabilize the global economy, triggering in Canada a 15% decline in house prices, combined with a severe downturn in construction activity “could result in a GDP decline of some 2.5% over a period of two years relative to the baseline,” the report said.
TD Economics also warns of a possible housing correction bringing prices more in line with fundamentals next year and into 2013.
Deciding the fate of the housing market will be the opposing forces of rock-bottom interest rates and economic weakness, TD economist Sonya Gulati said in a report.
“Looking ahead, we anticipate a tug-of-war action to take hold in the Canadian real estate market. At one end of the rope is the magnetism of low interest rates; at the other are subdued prospects for economic, income and employment growth.
“Ultimately, we expect the economic side of the equation to win out over the near-term,” she said.
That would mean a soft first half of the year largely as a result of external economic tensions. Even if those headwinds subside in the latter half of 2012, rising interest rates will restore the pressure on housing prices.
On average, and with great regional variation, Canadian housing prices could fall by 1.9% next year and 3.6% in 2013, Ms. Gulati said. Home sales could suffer comparable declines, while average starts should fall to 170,000 to 180,000 annually over the next two years.
“Collectively, these adjustments will gradually erase the over-valuation in the marketplace,” Ms. Gulati said.
The pace of adjustment could become decidedly less gradual if Europe fails to contain financial contagion. And if households continue to take on debt, the eventual deleveraging effect could be more pronounced.
With income growth lagging borrowing, household debt has risen to a record 150% of disposable income, a burden the Bank of Canada said represents the greatest domestic threat to economic stability.
While low interest rates continue to encourage borrowing growth, the IMF lent its support to the central bank’s accommodative rate policy.
“Should the recovery be accompanied by further sustained increases in mortgage debt as a share of disposable income spurred by low interest rates, a tightening of macroprudential policies by the government may be needed,” it said.
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Wishing all my Past Clients and Future Clients……
December 23rd, 2011 Categories: Real Estate News
All the Best for the Holiday Season and have an Incredible 2012. Hope we cross paths soon……
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How Your Agent Markets Themselves Indicates How They Will Market Your Home
December 23rd, 2011 Categories: Real Estate News
With the glut of available homes on the market, how your home is marketed is the biggest factor in determining how quickly it will sell (assuming the price is reasonably presented). A real estate agent’s marketing plan should be the most crucial determinant in deciding who to list your home with. But, how can you really know about the agent’s marketing strategies?
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Where Are the Generation Y Home Buyers?
December 12th, 2011 Categories: Real Estate News
Many buyers are delaying a decision to purchase a home because of the volatility of the real estate market. There is no larger category exhibiting this behavior than those of Generation Y. To define this segment of the population, we go to Wikipedia:
Does this generation wish to own a home?
Yes. A recent survey completed by Trulia shows people between the ages of 18-34 still believe in the concept of home ownership. 65% of those surveyed said “their American Dream includes owning a home”.
Where are these adults living?
Recent research form John Burns Real Estate Consulting shows the number of adults living with their parents has dramatically increased over the past eight years. Below is a graph showing the numbers:
Bottom Line
Generation Y believes in homeownership. Yet, they are delaying the decision to purchase a home of their own. When they do decide to buy, they will impact the housing market in a big way.
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Healthy Fall Market continues into November
December 10th, 2011 Categories: Real Estate News
Greater Toronto REALTORS® reported 7,092 residential transactions through the TorontoMLS® system in November – up 11 per cent in comparison to November 2010. At the same time, the number of new listings was up by 14 per cent in comparison to last year.“We have seen strong annual sales growth through the 2011 fall market. The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area,” said Toronto Real Estate Board (TREB) President Richard Silver. “The market has also become better supplied, with annual new listings growth outstripping that of sales. As this trend continues into 2012, we will see more balanced market conditions.”
The average price for November transactions was $480,421, representing an increase of almost 10 per cent in comparison to $437,494 in November 2010.
“Despite strong price growth this year, the housing market remains affordable in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The correct method of assessing affordability is to consider the share of the average household’s
income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace.”
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