Excellent article describing why the Bank of Canada has decided to keep the interest rates at historically low levels.
Click below:
http://www.thestar.com/business/article/999871--global-economy-too-fragile-for-rate-hike-says-central-bank?bn=1
Tuesday, May 31, 2011
Tuesday, May 24, 2011
CREA's April report signifies downward trend for 2011, 2012: TD Economist
Excellent article on the current state, and future trend of the Canadian Real Estate Market.
Very much in line with my beliefs as well.
Cick the link below:
http://www.canadianrealestatemagazine.ca/news/106723/details.aspx
Very much in line with my beliefs as well.
Cick the link below:
http://www.canadianrealestatemagazine.ca/news/106723/details.aspx
Thursday, May 12, 2011
With rising interest rates, should you lock in or stay variable??
Read the following article for a better understanding of what works for you!!
http://www.canadianrealestatemagazine.ca/news/106662/details.aspx?utm_medium=email&utm_source=MyNewsletterBuilder&utm_content=187552693&utm_campaign=Fixed+or+variable+old+debate+new+landscape+1410854697&utm_term=Read+more
http://www.canadianrealestatemagazine.ca/news/106662/details.aspx?utm_medium=email&utm_source=MyNewsletterBuilder&utm_content=187552693&utm_campaign=Fixed+or+variable+old+debate+new+landscape+1410854697&utm_term=Read+more
Wednesday, May 11, 2011
Vancouver Housing Market Bubble
Click below to view a quick and very interesting article.
Will Toronto have the same fate?? It is too early to tell.
http://www.canadianrealestatemagazine.ca/News/106696/details.aspx?utm_medium=email&utm_source=MyNewsletterBuilder&utm_content=187552693&utm_campaign=Housing+bubble+ready+to+pop+in+Vancouver+1410862021&utm_term=Read+more
Will Toronto have the same fate?? It is too early to tell.
http://www.canadianrealestatemagazine.ca/News/106696/details.aspx?utm_medium=email&utm_source=MyNewsletterBuilder&utm_content=187552693&utm_campaign=Housing+bubble+ready+to+pop+in+Vancouver+1410862021&utm_term=Read+more
Monday, May 9, 2011
April Market Watch Report
April 2011
Tight Market Results in Strong Price Growth in April
TORONTO – May 5, 2011
Greater Toronto REALTORS® reported 9,041 existing home sales through the TorontoMLS® system in April 2011. This result was down 17 per cent compared April 2010 when sales spiked to a new record of 10,898. While off last year’s record result, April 2011 sales were in line with the average April sales level reported over the previous five years.
“Existing home sales have been strong from a historic perspective through the first four months of 2011. Expect the pace of sales to remain robust through the spring, as the economy expandsand home bu yers continue to benefit from affordable home ownership opportunities,” said Toronto Real Estate Board (TREB) President Bill Johnston.
Market conditions tightened markedly over the last year. April 2011 sales accounted for 62 percent of new listings during the month – up substantially from 53 per cent in April 2010. Tighter conditions resulted in the average April selling price growing by nine percent annually to $477,407.
“The number of listings has been below expectations so far this year. Increased competition between home buyers has led to an accelerating annual rate of price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The strong price growth experienced in April should result in more listings and more balanced market conditions.”
Jonathan’s Opinion
Unsurprisingly, we have another month of lower sales and higher prices. This is once again attributable to the fact that there is very little inventory (listings/supply) on the market, and still many Buyers/Demand, due to very low interest rates. However, when looking at these price increases it is important to understand that the numbers may be a little skewed.
The reason is because the average price figures include the sale price of ALL houses in Toronto, from the smallest least expensive, to the largest multi-million dollar mansion. Therefore, for example, if there have been ten 5 million dollar properties sold last month, the average price as a whole will be higher.
Nevertheless, prices are higher but will begin to level off as interest rates begin increasing (and they will). Listings and sales will increase (as they always do in the spring), and as supply and demand converge, prices will remain stable (we will not see double digit percent increases as we have this last year and a half).
Houses will still hold their value, but they may take a little longer to sell!
Tight Market Results in Strong Price Growth in April
TORONTO – May 5, 2011
Greater Toronto REALTORS® reported 9,041 existing home sales through the TorontoMLS® system in April 2011. This result was down 17 per cent compared April 2010 when sales spiked to a new record of 10,898. While off last year’s record result, April 2011 sales were in line with the average April sales level reported over the previous five years.
“Existing home sales have been strong from a historic perspective through the first four months of 2011. Expect the pace of sales to remain robust through the spring, as the economy expandsand home bu yers continue to benefit from affordable home ownership opportunities,” said Toronto Real Estate Board (TREB) President Bill Johnston.
Market conditions tightened markedly over the last year. April 2011 sales accounted for 62 percent of new listings during the month – up substantially from 53 per cent in April 2010. Tighter conditions resulted in the average April selling price growing by nine percent annually to $477,407.
“The number of listings has been below expectations so far this year. Increased competition between home buyers has led to an accelerating annual rate of price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The strong price growth experienced in April should result in more listings and more balanced market conditions.”
Unsurprisingly, we have another month of lower sales and higher prices. This is once again attributable to the fact that there is very little inventory (listings/supply) on the market, and still many Buyers/Demand, due to very low interest rates. However, when looking at these price increases it is important to understand that the numbers may be a little skewed.
The reason is because the average price figures include the sale price of ALL houses in Toronto, from the smallest least expensive, to the largest multi-million dollar mansion. Therefore, for example, if there have been ten 5 million dollar properties sold last month, the average price as a whole will be higher.
Nevertheless, prices are higher but will begin to level off as interest rates begin increasing (and they will). Listings and sales will increase (as they always do in the spring), and as supply and demand converge, prices will remain stable (we will not see double digit percent increases as we have this last year and a half).
Houses will still hold their value, but they may take a little longer to sell!
Monday, May 2, 2011
True or False?? and "Bully Offers"
If an offer on a property is for full asking price, the Seller must accept it! TRUE OR FALSE??
The answer is FALSE!
A Buyer can offer any price they feel, and the Seller is not obligated to accept it, even if it is well over the asking price.
For some reason there is a misconception that a Seller must accept an offer on their property if it is full price.
This is where "BULLY OFFERS" are most common. I'll explain:
Real Life Example:
This happened to me several weeks ago on a house that I had listed for sale. The house was listed for $499,900 (which was below market value), and, as per the Sellers written instructions, I restricted the presentations of all offers until a further date. This is a strategy that normally generates multiple offers (bidding wars).
After the property was listed, I had about 50 showings in 3 days, and an Realtor called me and told me that his client wanted to put an offer in. They knew that offers were being restricted until a further date, but insisted to fax me an offer before that date anyways--this is a BULLY OFFER...(I have a legal duty to present that offer to my clients).
The offer was very good...the price $15,000 over the asking price, and the offer was firm (no conditions). When presenting this offer to my clients, I explained to them that I would not accept this offer regardless of its attractiveness, because I was confident that the day of offer presentations, we would get multiple offers, and the house would be sold for even higher than $15,000 over asking.
My clients respected my advise, and decided to wait until the offer presentation date. At that time we received 4 offers in total, and the house ended up selling for $35,000 over the asking price, with no conditions. My clients were very happy, and realized that by waiting they made the right decision.
In conclusion, all Sellers must remember that they DO NOT have an obligation to accept any offer, regardless of the price.
By decling the BULLY OFFER, my client managed to earn an extra $20,000!!!
The answer is FALSE!
A Buyer can offer any price they feel, and the Seller is not obligated to accept it, even if it is well over the asking price.
For some reason there is a misconception that a Seller must accept an offer on their property if it is full price.
This is where "BULLY OFFERS" are most common. I'll explain:
Real Life Example:
This happened to me several weeks ago on a house that I had listed for sale. The house was listed for $499,900 (which was below market value), and, as per the Sellers written instructions, I restricted the presentations of all offers until a further date. This is a strategy that normally generates multiple offers (bidding wars).
After the property was listed, I had about 50 showings in 3 days, and an Realtor called me and told me that his client wanted to put an offer in. They knew that offers were being restricted until a further date, but insisted to fax me an offer before that date anyways--this is a BULLY OFFER...(I have a legal duty to present that offer to my clients).
The offer was very good...the price $15,000 over the asking price, and the offer was firm (no conditions). When presenting this offer to my clients, I explained to them that I would not accept this offer regardless of its attractiveness, because I was confident that the day of offer presentations, we would get multiple offers, and the house would be sold for even higher than $15,000 over asking.
My clients respected my advise, and decided to wait until the offer presentation date. At that time we received 4 offers in total, and the house ended up selling for $35,000 over the asking price, with no conditions. My clients were very happy, and realized that by waiting they made the right decision.
In conclusion, all Sellers must remember that they DO NOT have an obligation to accept any offer, regardless of the price.
By decling the BULLY OFFER, my client managed to earn an extra $20,000!!!
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