|MLS® Home Price Index Benchmark Price|
|Composite HPI||July 2016||Percentage Change vs.|
|1 month ago||3 months ago||6 months ago||12 months ago||3 years ago||5 years ago|
Frank Steinhausen, Broker
RE/MAX Rouge River Realty Ltd., Brokerage
- Real Estate News
- Home staging
- Neighbourhood fun
- Green Building
- Home Inspection
- Home Ownership
- Real Estate Market Update
- Pickering Village
- Real Estate
- Real estate investment
- Buying real estate
- Selling real estate
- Durham Region
- Area interest
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
Real estate is local. The variation to the real estate market across the country is the same as the variation in trends across the GTA. Call us to find out what is happening in your neighbourhood.
- National home sales fell 1.3% from June to July.
- Actual (not seasonally adjusted) activity came in 2.9% below July 2015.
- The number of newly listed homes rose 1.2% from June to July.
- The MLS® Home Price Index (HPI) rose 14.3% year-over-year in July.
- The national average sale price climbed 9.9% in July from one year ago; net of the Greater Toronto Area (GTA) and Greater Vancouver, it advanced 7% year-over-year.
The number of homes trading hands via Canadian MLS® Systems fell by 1.3 percent month-over-month in July 2016. With similar monthly declines having been posted in May and June, national sales activity in July came in 3.9 percent below the record set in April 2016.
Sales activity was down from the previous month in slightly more than half of all markets in July, led by Greater Vancouver and the Fraser Valley. Transactions in these two markets peaked in February of this year, and have since then dropped by 21.5 and 28.8 percent respectively. Accordingly, much of the national sales decline in recent months reflects slowing activity in B.C.’s Lower Mainland.
“National sales and price trends continue to be heavily influenced by a handful of places in Ontario and British Columbia and mask significant variations in local housing market trends and conditions across Canada,” said CREA President Cliff Iverson. “All real estate is local, and REALTORS® remain your best source for information about sales, listing and price trends where you live or might like to in the future.”
“Home sales continued to trend lower while price gains further accelerated in the Lower Mainland of British Columbia,” said Gregory Klump, CREA’s Chief Economist. “This suggests that sales are being reined in by a lack of inventory and a further deterioration in affordability. The new 15 per cent property transfer tax on Metro Vancouver home purchases by foreign buyers took effect on August 2nd, so it will take some time before the effect of the new tax on sales and prices can be observed. That said, the new tax will do little in the short term to increase the supply of homes.”
Actual (not seasonally adjusted) sales activity was down 2.9 percent year-over-year (y-o-y) in July 2016, marking the first y-o-y decline since January 2015 and the largest since April 2013. In line with softening activity in the Lower Mainland, y-o-y increases have been losing momentum since February 2016. Sales were down from levels one year earlier in about 60 percent of all Canadian markets, led by Greater Vancouver, the Fraser Valley, Calgary and Edmonton.
The number of newly listed homes rose by 1.2 percent in July 2016 compared to June. While new supply climbed in fewer than half of all local markets, increases in Greater Vancouver and the Fraser Valley, Greater Toronto, Calgary and Edmonton outweighed declines in smaller markets.
With sales down and new listings up, the national sales-to-new listings ratio eased to 61.6 percent in July 2016 – its second monthly decline following its peak of 65.3 percent in May. A sales-to-new listings ratio between 40 and 60 percent is generally consistent with balanced housing market conditions, with readings below and above this range indicating buyers’ and sellers’ markets respectively.
The ratio was above 60 percent in about half of all local housing markets in July, virtually all of which continue to be located in British Columbia, in and around the Greater Toronto Area and across Southwestern Ontario.
The number of months of inventory is another important measure of the balance between housing supply and demand. It represents the number of months it would take to completely liquidate current inventories at the current rate of sales activity.
There were 4.6 months of inventory on a national basis at the end of July 2016. This is unchanged from readings in each of the previous two months and continues to indicate a tight balance between supply and demand for homes.
The number of months of inventory has trended lower since early 2015, reflecting increasingly tighter housing markets in B.C. and Ontario. It currently sits near or below two months in a number of local markets in British Columbia and in and around the GTA. Indeed, some regions in the GTA are down to just a couple of weeks of inventory.
The Aggregate Composite MLS® HPI rose by 14.3 percent y-o-y in July 2016, the biggest gain since November 2006.
For the sixth consecutive month, y-o-y price growth accelerated for all Benchmark property types tracked by the index.
Two-storey single family home prices continued to post the biggest y-o-y gain (+15.9 percent), followed by townhouse/row units (+15.3 percent), one-storey single family homes (+14.3 percent), and apartment units (+11.1 percent).
While prices in 9 of the 11 markets tracked by the MLS® HPI posted y-o-y gains in July, increases continue to vary widely among housing markets.
Greater Vancouver (+32.6 percent) and the Fraser Valley (+37.6 percent) posted the largest y-o-y gains by a wide margin, followed by Greater Toronto (+16.7 percent), Victoria (+17.5 percent) and Vancouver Island (+11.6 percent). By contrast, prices were down -4.2 percent and -1.5 percent y-o-y in Calgary and Saskatoon respectively.
Home prices rose modestly in Regina (+2.7 percent y-o-y), Greater Montreal (+1.8 percent y-o-y) and Ottawa (+1.1 percent y-o-y). Greater Moncton recorded its largest y-o-y home price increase (+8.4 percent) among an unbroken string of gains posted every month over the past year.
The MLS® Home Price Index (MLS® HPI) provides a the best way of gauging price trends because average price trends are prone to being distorted by changes in the mix of sales activity from one month to the next.
The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which remain two of Canada’s tightest, most active and expensive housing markets. The actual (not seasonally adjusted) national average price for homes sold in July 2016 was $480,743, up 9.9 percent y-o-y.
If these two housing markets are excluded from calculations, the average price is a more modest $365,033 and the gain is trimmed to 7.0 percenty-o-y.
Even then, this reflects a tug of war between strong average price gains in housing markets around the GTA and in British Columbia versus flat or declining average prices elsewhere in Canada. The average price for Canada net of sales in British Columbia and Ontario in July 2016 edged down 0.2 percent y-o-y to $310,905. The year-over-year percentage change in the national average price excluding B.C. and Ontario sales has now been in negative territory for 20 consecutive months.
1 All figures in this release except price measures are seasonally adjusted unless otherwise noted. Removing normal seasonal variations enables meaningful analysis of monthly changes and fundamental trends.
Currently Comments Off on Canadian home sales post third consecutive decline in July|
Durham Region Association of REALTORS® (DRAR) President Sandra O’Donohue reported 1,200 residential transactions in July 2016, a slight increase from the same time last year. “The market has kept a steady pace into mid-summer,” stated O’Donohue. There were 1,459 new listings in July 2016 compared to 1,511 in July 2015.
“The prices of homes have continued to increase,” added O’Donohue. The average selling price in Durham reached $547,496 last month. In comparison, the average selling price was $448,048 during the same period last year; a 22 per cent increase. Homes have continued to sell quickly in an average of 12 days compared to 18 days last year. “Competition is intense in Durham Region,” says O’Donohue.
With listing shortages common in the Greater Toronto Area and Durham Region, British Columbia’s verdict to impose a 15 per cent tax on foreign buyers have driven worry in Ontario. “I welcome what [B.C.] is putting forward,” says Ontario’s Finance Minister, Charles Sousa. “We’re certainly looking at whatever options can be made available.”
While the new tax may drive some purchasers to Ontario in the short-term, Sousa explains it is important to consider how similar policies could have repercussions to other parts of Ontario that aren’t experiencing the same extreme pricing.
“There could be a ripple effect to the Durham Region if we see an influx of foreign buyers in Toronto,” explains O’Donohue. “Durham Region is an affordable area within arm’s reach, that’s appealing for anyone looking to avoid the higher Toronto prices.”
Currently Comments Off on Real Estate Market Remains Hot in Durham Region|
Figuring out how much time you should spend viewing properties for sale is a little like asking, “How long should I spend trying on shoes?”
The answer seems obvious: As long as it takes to make a decision!
Buying a home is significantly more complex than purchasing shoes – and the stakes are higher too! You need to make sure you have all the information necessary to confidently make the best decision.
There are basically three stages to viewing a property:
When you view a home on a macro basis, you’re looking at it from an overall perspective. For example, you may do a general walk-through to get a first impression and determine if the property has the basic features you need, such as the number of bedrooms and the size of the backyard.
Macro viewing is often the fastest stage in the viewing process and can sometimes take just a few minutes. If you like what you see, then it’s onto the micro stage. At this stage you take a closer look at the details of the property. You might, for example, spend extra time in the master bedroom imagining how your furniture would look and fit.
The micro stage takes longer simply because the home is now on your shortlist. You’re interested and are considering making an offer.
Finally, the professional stage involves getting a qualified home inspector to go over the property with a fine tooth comb. That typically occurs after you’ve made an offer.
As your REALTOR®, we will guide you through a viewing so you’ll know what to look for and can make a smart, informed decision. Call today.
Currently Comments Off on How Much Time Should You Spend Viewing Houses|
Setting the right list price for a home is a mystery for many sellers. How do you begin to determine what buyers are likely to pay for your property? After all, no two homes are exactly alike.
Yet, setting the right price is crucial. You need to avoid the two price “tipping points” that, if crossed, can cause you a lot of problems.
The first tipping point is a price that’s low enough for buyers to begin thinking something is wrong. They wonder, Why is your price so low? What are you not telling us about your property?”
But that’s not even the worst problem with this tipping point. If you do get offers at that low price, you’ll have a bigger issue – leaving thousands of dollars on the table.
The other tipping point is setting your price so high it discourages buyers from giving your listing a second look. When your price is that high, you’ll get few enquiries and even fewer people coming to see your property.
Of course, you can lower your price later, if necessary. But experience shows that reduced prices make potential buyers skeptical. Most sellers who price high in the hopes of getting a windfall actually end up selling for much less than they would have if they had priced their properties correctly in the first place.
So what’s the right price to list your property? The answer is somewhere in-between those two tipping points.
Call today for help determining the right price for your property.
Currently Comments Off on Finding the List Price “Tipping Points”|
DURHAM REGION, July 8, 2016 – Durham Region Association of REALTORS® (DRAR) President Sandra O’Donohue reported 1,471 residential transactions in June 2016. A slight increase compared to the same period last year. “Demand continues to exceed supply,” stated O’Donohue. In contrast, there were 1,755 new listings in June
2016 compared to 1,796 June 2015; a 2.3 per cent decrease.
“Inventory of available homes for sale has continued to increase buyer demand in Durham Region,” added O’Donohue. The average selling price in Durham reached $542,314 last month. In comparison, the average selling price was $452,412 during the same period last year, which is a 15.8 per cent increase.
The overall number of available homes for sale and increasing prices are causing homes to sell in an average
of 11 days compared to 16 days last year. “Durham Region has continued to see strong competition,” explained O’Donohue. “This is an indication of consumer demand and, as a result, homes continue to sell quickly.”
The GO Transit’s Lakeshore East extension into Clarington demonstrates much needed attention to the transportation infrastructure in Durham Region. “With ease of use directly impacting commuters, the extension
will greatly improve the value of homes and increase demand of properties in our neighbourhoods,” added O’Donohue. “It is inevitable that this will impact real estate and drive growth in Durham Region.”
Courtesy of www.durhamrealestate.org:
Average Selling Price by Housing Type for Durham Region
Currently Comments Off on Seller’s Market Alive and Well in Durham Region|
When is the best time to meet with a REALTOR®? Chances are, you would say, “When I’m thinking of buying or selling a home.” You’d be right, of course!
However, there are many other good reasons to meet with us. Here are just a few:
- You want a professional opinion as to the current value of your property, so you know what it would likely sell for in today’s market.
- You notice a home listed for sale in a desirable neighbourhood, and you’re interested in learning more — even if you’re unsure you want to make a move.
- You’re thinking of moving within the next couple of years, and you want to find a REALTOR® like us, that you can get to know and trust.
- You want some recommendations for preparing your home for sale and especially determining what repairs and other work needs to be done.
- You want an honest assessment as to the state of the local market, and the best time for you to buy or sell.
- You have real estate-related questions and you want to talk to an expert who knows the local market well and can provide you with answers.
As you can see, there’s a lot of value you can get from talking to us as your REALTOR®. Call today.
Currently Comments Off on Not-So-Obvious Reasons to Meet with a REALTOR®|
With mortgage rates still hovering near historic lows, more people are turning to real estate investments as a way to build and preserve wealth. Whether you start fixing and flipping properties or buying and renting them out for monthly cash flow, either investment style can make your money work harder for you.
Before you start investing in real estate, it’s important to line up professionals to help you make offers when you find them. Among your team members, you will want to include:
- A savvy, local real estate professional
- A mortgage broker or banker to help you get financing
- A real estate attorney to write and reviewing contracts
- An appraiser who knows the market and will help you get a correct property appraisal
- An accountant who is well versed in real estate investments
- A good contractor, for rehabbing or repairs
Then, you’ll need to determine your real estate investment style.
Rehab or wholesale properties for short-term ROI
The advantage of flipping properties is that you can end up with a good return on investment (ROI) in the short term. For example, you buy a property for $400,000, and invest $50,000 into repairs. Once it’s rehabbed, your property is valued at $500,000, and you sell it for a $50,000 profit.
Once you know where to find rehab opportunities, you can easily repeat the process by reinvesting proceeds from a previous flip into the next property. This is where working with savvy real estate professional can help. They can help you find the right fixer-uppers that may be under market value. A Realtor will have access to many properties that may not be publicly available.
When you are evaluating a property, you will need to look at the whole picture to ensure it will bring you a profit once you resell it. Beyond the actual purchase price and rehab costs, your budget should include carry mortgage payments, property taxes, utilities, and insurance. If it looks good on paper, you can get your real estate team to help you quickly make the offer.
Buy-and-hold rental properties for monthly cash flow
If you find the right long-term buy-and-hold rental property, you can earn consistent cash flow each month. However, you’ll need to carefully review the operating expenses on the property and what tenants are willing to pay for the space to know if you’ll make or lose money each month.
Does your long-term investment make sense on paper? In other words, you will need to understand if your monthly cash flow will be positive or negative.
For example, say your total costs to buy a duplex was $40,000, including down payment and closing costs. You can rent each of the units for $800. Assuming your building is 100% occupied, you’ll make $1600 per month in income. Your expenses include mortgage payments, taxes, insurance, utilities, and management fees, and you want to set aside some cash each month for capital expenditures and routine repairs. You calculate that your expenses add up to $1500 per month. Once you subtract your expenses from your income, you’ll have a positive cash flow of $100 per month.
You can also add amenities, such as coin laundry and vending machines, to increase your potential monthly income. If your property has space to add a billboard, you can earn advertising revenue from renting that space, too. And when you decide to sell, your property’s value will likely have increased both from the overall rising property values and by the improvements you made to increase the cash flow.
Where should I start investing?
Contact us if you want to learn about investment properties in your local area. We can help you find the right properties that will fit into your budget and your overall goals.
Currently Comments Off on Rehab or Rent Out? Real Estate Investment Tips for Beginners|
DURHAM REGION, June 6, 2016 – Durham Region Association of REALTORS® (DRAR) President Sandra O’Donohue reported 1,445 residential transactions in May 2016. This represents an increase of 8.7 per cent compared to the same period last year. “There is no shortage of buyers in the market today,” stated O’Donohue. In contrast, there were 1,790 new listings in May 2016 compared to 1,851 May 2015; a 3.4 per cent decrease.
“Home prices have shown strong year-over-year increases in the Durham Region,” added O’Donohue. The average selling price in Durham reached $531,051 last month. In comparison, the average selling price was $449,837 during the same period last year. “The 15.3 per cent increase demonstrates a continual upward pressure in pricing.”
Similarly to last month, the continued increase in prices has caused homes to sell faster, selling in an average of 11 days compared to 15 days last year. “This is a healthy economic indicator,” explained O’Donohue. “Durham Region has poised substantial growth in prices and sales demonstrating strong demand dynamics.”
Currently Comments Off on Strong Sales Growth Continues in May|
Buying a home will probably be the largest and most significant purchase you will make in your life. It also involves the law of real property, which is unique and raises special issues of practice, and problems not present in other transactions. A real estate lawyer is trained to deal with these problems and has the most experience to deal with them. Some states certify lawyers as “Real Property Specialists” as a result.
In the typical home purchase, the seller enters into a brokerage contract with a real estate agent, usually in writing. When the broker finds a potential buyer, negotiations are conducted through the broker, who most often acts as an intermediary. Once an informal agreement is reached, buyer and seller enter into a formal written contract for the sale, the purchase agreement. The buyer then obtains a commitment for financing. Title is searched to satisfy the lender and the buyer. Finally, the property is transferred from the seller to the buyer, and the seller receives the purchase price bargained for in the contract. This seems simple, but without a lawyer, the consequences may be more disastrous than purchasing a car that turns out to be a lemon, or a stock investment that was unwise.
A lawyer can help you avoid some common problems with a home purchase or sale. …
The seller could have the advice and guidance of an attorney with respect to a brokerage agreement. Even if the agreement is a standard form, its terms could be explained to the seller and revised, if necessary. An attorney could also determine if the agreement was properly signed.
The buyer and seller each may have to consult with a lawyer to answer important questions, such as the tax consequences of the transaction. To a seller, if not selling their principal residence, the tax consequences may be of critical importance. For example, the income tax consequences of a sale, particularly if the seller makes a large profit, may be considerable. An attorney can advise whether the seller can take advantage of tax provisions allowing for exclusion of capital gains in certain circumstances.
The purchase agreement is the single most important document in the transaction. There are many issues that may need to be addressed in the purchase agreement; below are some common examples:
- If the property has been altered or there has been an addition to the property, was it done lawfully?
- If the buyer has plans to change the property, may what is planned for the property be done lawfully?
- What happens if a buyer has an engineer or architect inspect the property and termites, asbestos, radon, or lead-based paint is found?
- What if the property is found to contain hazardous waste?
- What are the legal consequences if the closing does not take place, and what happens to the down payment?
Most buyers finance a substantial portion of the purchase price for a home with a mortgage loan from a lending institution. The purchase agreement should contain a carefully worded provision that it is subject to the buyer’s obtaining a commitment for financing.
Mortgage loan commitments and mortgage loan documents are complex. Lawyers can review and explain the importance of these various documents.
After the purchase agreement is signed, it is necessary to establish the state of the seller’s title to the property to the buyer’s – and the finance institution’s – satisfaction. Generally, a title search is ordered from an abstract or title insurance company.
Even with title insurance, an attorney can help review the title search and explain the title exceptions as to what is not insured, and determine whether the legal description is correct and whether there are problems with adjoining owners or prior owners. He or she can also explain the effect of easements and agreements or restrictions imposed by a prior owner, and whether there are any legal restrictions which will impair your ability to sell the property.
The title search does not tell the buyer or seller anything about existing and prospective zoning. A lawyer can explain whether zoning prohibits a two-family home, or whether planned improvements violate zoning ordinances.
The closing is the most important event in the purchase and sale transaction. The deed and other closing papers must be prepared. Title passes from seller to buyer, who pays the balance of the purchase price. Frequently, this balance is paid in part from the proceeds of a mortgage loan. A closing statement should be prepared prior to the closing indicating the debits and credits to the buyer and seller. An attorney explains the nature, amount, and fairness of closing costs. The deed and mortgage instruments are signed, and an attorney assures that these documents are appropriately executed and explained to the various parties.
Perhaps the most important reason to be represented by an attorney is conflicting interests of the parties. Throughout the process, the buyer’s and seller’s interests can be at odds with each other, and even with those of professionals involved in the sale. The broker generally serves the seller, and the lender is obtained by the buyer. Both want to see the deal go through, since that is how they will get paid. Neither can provide legal counsel. The respective lawyers for the buyer and seller will serve only their own clients’ best interests. Seeking the advice of a lawyer is a very good idea.
– See more at: http://realestate.findlaw.com/buying-a-home/why-you-need-a-lawyer-when-you-buy-or-sell-a-house.html#sthash.Fm0h9zmH.dpuf
Currently Comments Off on Why You Need a Lawyer When You Buy or Sell a House|
Imagine if you dreamed of owning a special limited edition vehicle. What would you do to ensure that your dream vehicle would someday be parked in your driveway — with your name on the ownership papers?
You would probably start by doing some research. You’d find out how much that vehicle would cost, what features are available, and so forth. You would likely visit a local dealership and take a test drive if a model is available on site. You would keep an eye on the market for any that come up and let the dealer know you’re looking for just that car.
If you did, then, some day, you’d probably be the proud owner of the limited edition car of your dreams.
What does this have to do with real estate?
Well, you can take the same approach when there’s a neighbourhood you’d love to live in someday. You can target it, learn what homes typically cost in that area, and keep your eye on that market in case a property becomes available that meets your criteria.
By focusing on a specific neighbourhood, you increase your chances of someday living there, simply because you’re focusing on it.
Of course, neighbourhood targeting isn’t as simple as aiming to own a specific car someday. That’s why you need a great REALTOR® who can keep an eye on that neighbourhood on your behalf and alert you to opportunities that become available.
Then, when there is a listing that’s a good fit, you can decide whether or not to make a move.
Is there a dream neighbourhood you’d like to live in some day? Call us today to start making it happen.
Currently Comments Off on Making “Neighbourhood Targeting” Work for You|