Low inventory levels set stage for heated Spring market says RE/MAX

February 24, 2010 · Filed Under Market Trends, Real Estate Canada, Remax Reports and St. John's Real Estate · Comment 

Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released by RE/MAX.

The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.

There have never been so many motivating factors in play at once. We’re in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies.

Markets experiencing the tightest inventory levels include Toronto (- 41 per cent); Kitchener-Waterloo (-33 per cent); Ottawa (- 30 per cent); Victoria (- 30 per cent); Greater Vancouver (- 27 per cent); Halifax-Dartmouth (- 19 per cent); London-St. Thomas (- 18 per cent); Regina (- 16 per cent); and Winnipeg (- 13 per cent). Conditions were still balanced, but starting to tighten in Calgary, Edmonton and Saskatoon, particularly in the single-family detached category.

The highest year-over-year sales gains were reported in Greater Vancouver (152 per cent), Kelowna (121 per cent), Greater Toronto (87 per cent), Victoria (69 per cent), Hamilton-Burlington (58 per cent), London-St. Thomas (55 per cent) and Calgary (47 per cent). Western Canadian cities dominated the list of centres with the highest increases in price appreciation. These included Victoria at 25.5 per cent, Kelowna at 22 per cent, Greater Vancouver at 19.5 per cent, and Winnipeg at 17 per cent. St. John’s (23 per cent) and Toronto (19 per cent) were also among the frontrunners for price growth.

Affordability is the catalyst for the vast majority of purchasers in today’s housing market. While homeownership is still within reach in many major centres, levels are slipping. There is a growing sense, on both sides of the fence, that the time to act is now.

While buyers are taking advantage of favourable conditions, sellers too are reaping the rewards. Competing bids are a factor in the marketplace once again, with well-priced listings—especially at the entry-level price point—experiencing multiple offers. Properties priced at fair-market value will likely sell quickly for top dollar. The overall pressure on sales and price is significant across the board – and it’s not likely to subside unless more inventory comes on-stream.

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Protect, Maintain and Enhance the value of your home with HouseLogic

February 19, 2010 · Filed Under First Time Buyers, Home Maintenance, Real Estate Articles and Tips for Selling your Home · Comment 

Interested in ways to seal air leaks around the house to lower your heating bill?  How about saving energy with home lighting?  Planning on redoing the kitchen or bathroom?  Enter HouseLogic, a comprehensive website aimed to assist you in 100’s of home remodeling, energy saving tips.  Best of all….it’s FREE!

Earlier this week, the National Association of REALTORS (American version of CREA) launched a new website, entitled HouseLogic.  This web site is designed to help home owners make smart decisions to maintain, protect, and increase the value of their homes. HouseLogic will help consumers take responsible actions pertaining to what is likely the largest investment of their lives.

With content covering home improvement, maintenance, taxes, finance, insurance, and even ways you can get involved in and enrich your community, HouseLogic can help you increase and protect the value of your home by helping you make confident decisions.  (remember this is an American site so the taxes and finances, insurance may not be applicable here in Canada)

Create to-do lists, and set project reminders, get costs estimates on various renos and home improvements (in USD). A very informative website that has it all.  Be sure to check it out.

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Kirkland Balsom St. John’s Real Estate Market Overview 2010

February 18, 2010 · Filed Under Market Trends, Real Estate Articles, St. John's Condos and St. John's Real Estate · Comment 

Kirkland Balsom and Associates have just released their Real Estate Market Overview 2010 for St. John’s. I’ve shared this report the past 2 years and once again this year they are “spot on” with their assessments.

Here is an outline of their report:

RESIDENTIAL MARKET
Strong demand with less supply results in higher prices

The residential market just keeps on rolling! Demand remains strong and supply remains tight for well located and appropriately priced homes. The underlining drivers for this strong demand appears to be the fear of having to pay more in the future, easy access to favourable financing and strong employment throughout the region. A substantial increase in land values over the past year spurred new home construction cost and more than offset a slight softening in the sub-trades. Anticipated higher borrowing cost in late 2010 may serve to increase demand in the first half of 2010; however, could weaken demand in the second half. Pending an unforeseen increase in listing inventory, further price increases is
anticipated.

MULTI-RESIDENTIAL/CONDOMINIUM SECTOR
Effective full occupancy

With the apartment complexes at effective full occupancy and no new inventory on the horizon, rental rates should continue to increase. Not surprisingly in light of these trends, investor interest remains strong. A number of older apartment buildings in the university area have been purchased, renovated and converted to condominium units. Market activity also remains strong in the small scale 2-6 unit projects as entry level investors compete for limited supply.
Prices/demand continues to strengthen in condominiums at all price points. Escalating construction costs and an aging population will stimulate condo demand and values in the coming year.

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Changes made to Canadian Mortgages

February 17, 2010 · Filed Under First Time Buyers and Real Estate Canada · 1 Comment 

April 19th is the deadline for the old mortgage rules.  After this, the new changes proposed by the Canadian government earlier this week will be in effect.  Personally I think the rules are a good move from the governments part and in the long run protect Canadians from taking on additional debt.  As well, for those thinking we are in a housing bubble it should assist in slowing the pace a little.

Starting April 19th, the new mortgage rules are as follows:

1) All new borrowers will have to meet standards for the 5 year fixed-rate mortgages even if they’re seeking a shorter, variable-rate loan.

2) The maximum amount Canadians can withdraw when refinancing is now 90% of the value of their homes down from the current 95 per cent.  It’s a good idea to personally cap this at 80% – if you go over 80%, CMHC fees are applicable.

3) For those interested in an investment property, you will be required to have a 20% down payment for government-backed mortgage insurance on speculative investment properties.

The third rule change seems to be the harshest of the three as there are a number of people interested in buying investment properties for the long term (ie for retirement). It’s a big price hike for a down payment on an investment property now.  An average 2-apartment home in St. John’s is around $250,000.  This means a purchaser would need $50,000 for the down payment.  Again, the 20% will help avoid your CHMC fees when purchasing an investment property.

What are your thoughts for the new upcoming changes in Canada’s mortgage rules?

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Interesting Real Estate links throughout Canada

February 16, 2010 · Filed Under Real Estate Articles, Real Estate Canada, Real Estate Roundup and St. John's Real Estate · Comment 

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New home for sale in St. John’s East End 28 Cambridge Ave

February 15, 2010 · Filed Under New MLS Listings, St. John's East End and St. John's MLS listings · Comment 

3 bedroom bungalow located on a large lot.  Spacious and bright above ground one bedroom in-law apartment with separate entrance. New roof shingles 2009.  This property has some newer vinyl windows. The carpet in upstairs was installed in 2009.  28 Cambridge Ave is located in East End St. John’s close to all amenities. (2 mins from Stavanger Drive and the Outer Ring) Great price in a great location. Asking price is $229,000.

For more information call Fraser and Stephen Winters.

To view a virtual tour of 28 Cambridge click here.

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4 Simple Ways to make your home irressistible

February 8, 2010 · Filed Under Home Maintenance and Tips for Selling your Home · Comment 

There are dozens of ways to make your property more enticing to potential buyers.  For example, you can invest in  getting your home professionally “staged”, which involves making it look a little like a model home.  Or, you can do a major renovation to improve your home‘s look and value.

But what if you don’t have a lot of time and are on a limited budget? What can you do today to make your home irresistible to buyers tomorrow?  Here are some ideas:

1. Paint
It doesn’t cost much to paint key areas of your home, like the foyer, kitchen or master bedroom.  Yet the impression it makes on buyers is significant. In fact, compared to most other types of home improvement projects, painting gives you the highest payback when you sell.

2. Create space
Homes naturally get cluttered over the years.  Even a double car garage can seem claustrophobic if there are a lot of boxes, equipment and other items stored in it.  Go through each room of your home and do a major decluttering.  It will  make your property seem more attractive and, when you sell, make moving easier too!

3. Clean and tidy
Obviously, you’re going to make sure your home is clean for viewings. But you’d be surprised what a homeowner can miss and a buyer notices. Closets, laundry rooms, side yard, basement furnace room and all other nooks and crannies should be as tidy and clean as possible.

4. Roll out the red carpet
Not an actual red carpet! But you do want the entrance way to your front door and into the foyer to make the best impression possible.  After all, those are the areas that a buyer sees first. Make sure walkways are clear and clean. Ensure that when a buyer opens the front door and walks in, the impression he or she gets is that of a great looking place to live.

These four tips don’t take much time or money to implement. Yet, they can all help make your home even more irresistible to buyers than it is today.

Want more tips on preparing your home for sale?  Curious to know the value of your home? Contact Fraser and Stephen Winters today for a FREE home market evaluation.

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