Buyer Representation Agreements

May 30, 2011 · Filed Under First Time Buyers and St. John's Real Estate · Comment 

Check out this quick youtube video from the Toronto Real Estate Board.  It explains the benefits of signing a Buyer Representation Agreement.

While these agreements have been around St. John’s for years, they are becoming more and more common practice amongst Realtors and clients….both benefiting.

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RE/MAX First Time Buyer Report 2011 for St. John’s

April 6, 2011 · Filed Under First Time Buyers, Market Trends, Remax Newfoundland and Remax Reports · Comment 

Demand for housing in St. John’s remains healthy, particularly among first time buyers, despite a decline in year-to-date sales.  Buyer’s market conditions and the best choice of product in years have buoyed the entry-level segment, along with wage gains, economic growth and rising consumer confidence levels. Affordability continues to be  favourable, with increased earnings offsetting the more moderate price growth of late.  Most young home buyers are now active from $200,000 to $250,000.  Those buying new construction will have to ante up more—typically between $230,000 and $280,000 to start—as the  price of new construction has risen at a greater rate.  Those on a tight budget will find that homes listed below $200,000 are few and far between and tend to sell for close to full price, if listed at fair market value.  Some even generate a rare multiple offer.

To illustrate the supply issue, only 34 homes have sold year-to-date under $175,000, accounting for just 10 per cent of all sales, and only 39 listings under that price point are currently available. Given that, buyers at the lowest end of the price spectrum will have to act more quickly.  The housing mix in St. John’s continues to favour the single detached home, particularly in the first-time buyer segment.

Of the 34 homes sold under $175,000, only three were condominiums. Entry-level condominium product remains limited in St. John’s, as builders continue to focus on the mid-range—units priced between $250,000 and $350,000. While condominiums are gaining traction with younger buyers, they remain only a small portion of entry-level sales. Condominiums now start from $165,000 to $175,000 for an  older, 650 to 750 sq. ft. walk-up unit on Thorburn Rd., Dalton Ave., and in Pleasantville.

With the current oversupply of homes listed for sale in St. John’s, buyers remain in the driver’s seat. That, along with historically low interest rates, continues to serve as a significant  impetus.

Detached homes can be found from $169,000 for an older bungalow requiring work, located on the peripherals. Older homes are most popular. Most sought-after are properties priced between $210,000 and $250,000 in established neighbourhoods such as Cowan Heights, Mount Pearl and Paradise. Most buyers are realizing their choice location, with little need to compromise.  Those that must choose are opting to spend a little more, if necessary.

Solid demand among first-time purchasers is expected to carry over in to the spring market, with new financing criteria expected to have little impact. In fact, look to sales in the entry-level segment to prompt greater activity in the move-up range in the months ahead. February year-to-date sales were 11 per cent off year-ago levels, with 359 sales recorded, while average price continued its ascent at $255,512, up just over five per cent.

Full RE/MAX Media Release for the First Time Buyers Report 2011

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First-time buyers entering home ownership throughout Canada ahead of higher interest rates, says RE/MAX

April 5, 2011 · Filed Under First Time Buyers and Remax Reports · Comment 

Driven by the threat of higher interest rates down the road, first-time buyers are contributing to strong upward momentum in residential housing markets across the country, according to a report released by RE/MAX.

The RE/MAX First-Time Buyers Report, highlighting trends and  developments in nineteen major Canadian centres, found that low interest rates and balanced market conditions have provided significant impetus in 2011, particularly at lower price points.  Just over 30 per cent of markets are reporting sales in excess of 2010 levels as a result, while almost 70 per cent have experienced an upswing in average price.  Leading the country in terms of percentage increases in the number of homes sold are Western Canadian markets, including Saskatoon (up close to 15 per cent), Greater Vancouver (up close to 12 per cent), and Winnipeg (up just over 11 per cent).  With an average price hike of close to 20 per cent year-to-date (February), Greater Vancouver continues to show unprecedented strength, followed by Hamilton-Burlington (eight per cent), Quebec City (seven per cent), Winnipeg (close to seven per cent), Greater Toronto (five per cent), and Greater Montreal (five per cent).

Despite homeownership rates approaching 70 per cent, there is clearly room for growth as entry-level buyers make their moves from coast-to-coast, undeterred by higher housing values and changes to lending criteria.  Many purchasers intent on realizing homeownership are scaling back on expectations or are willing to sacrifice location, quality and/or size to make their dream a reality – not unlike generations before them.

Inventory levels, while tight in several larger centres, are more balanced overall, giving first-time buyers a good selection of housing product from which to choose.  Not surprisingly, condominium apartments and town homes have become the first step for many entry-level purchasers, especially in Greater Vancouver, Victoria, Kelowna, Edmonton, Calgary, London-St. Thomas, Hamilton-Burlington, Greater Toronto, the Island of Montreal, and Halifax-Dartmouth where average prices have risen unabated in recent years.

With the Canadian economy on firmer footing overall, residential real estate is well-positioned moving into the traditionally busy spring market.  Consumer confidence is climbing in conjunction with economic performance, and concerns over a secondary recession fade with each passing day.  The mood is cautiously optimistic, as first-time buyers enter the market.

Changes to recent financing criteria have not created the anticipated run up in activity in most markets.  From a financial standpoint, most rookie home buyers remain quite prudent.  Those making the leap are not doing it lightly, buying within their means.  While this most recent round of policy tightening will likely have a negligible effect on demand, the message is getting across.

Affordability remains a growing concern in most markets, and—aside from first-time purchasers—no one is more in tune with that than housing planners and developers.  In fact, the growing demand for reasonably-priced product is creating a shift in the country’s housing mix.  That trend is expected to gain traction in coming years, as builders look to create greater options for those seeking to realize homeownership.    In recent years, builders have helped ease the move to homeownership by concentrating on intensification—condominium buildings with smaller suites and small-lot subdivisions offering detached, compact homes at a fraction of the cost of a traditional single-family home.   On the flip side, the affordability factor is also breathing new life into tired older neighbourhoods, and that, in turn, is contributing to rising values.

As prices escalate, first-time buyers are indeed spending more—some out of necessity, but others are simply in a position to do so.  Unlike in years past—a greater percentage of today’s first-time buyer pool is comprised of dual-income, college or university-educated couples with solid earnings.  They’re spending close to average price or slightly more to secure—in most cases—a better location or a home that will grow with them.   Yet, the fact remains that those on a tighter budget can get in for considerably less, with reasonable choices in every major market across the country.   While some may feel discouraged by eroding affordability levels, the underlying confidence in the concept of homeownership is rising.

While market conditions are one thing that influences first-time buyers, few things trump the fundamental belief in homeownership.  Today’s entry-level buyers are steadfast in their mindset.  They know they have to live somewhere, but they simply don’t want to pay someone else’s mortgage.  Savvy or practical, they remain a driving force.  The bottom line is that the demand for entry-level product will remain steady.  The role of starter homes in the marketplace is becoming ever more vital.

Full RE/MAX Media Release can be viewed here.

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What! You’re going to charge a penalty on my mortgage?

January 10, 2011 · Filed Under First Time Buyers, Mortgages and St. John's Real Estate · Comment 

This is a guest post from Jeff Burton with Royal Bank. Jeff is a Mortgage Specialist and can be reached anytime at 709-685-4816

With spring just around the corner, many people contemplate selling their home.  There are many variables to consider. A commonly asked question is; “if my mortgage is not up for renewal, can I sell my home?” or “if I sell my home before it is up for renewal, will there be a pre-payment charge or most commonly referred to as a penalty?”

The good news is, you have options.

Your mortgage may be portable and/or assumable.  If your mortgage is not up for renewal and you sell your home, then most likely there will be a pre-payment charge if you do not avail of one of the previously mentioned options.  The amount of this pre-payment charge will vary depending on a number of factors and best answered one on one by a mortgage professional.

Porting your mortgage refers to transferring your mortgage from one property to another.  By taking advantage of this option, you will avoid the pre-payment charge since the financial institution does not loose your business. Most often a blended rate will occur.  This is when the financial institution looks at your current rate (and the time remaining in that term) and blends it with the closest term (to time remaining) and its rate to calculate a blended rate.  Normally you have a 90 day period to port your mortgage.  So from the sale date of your existing home to the purchase of your new home, it should be within 90 days.  It is possible to port your mortgage anywhere in Canada.  Again this is best discussed one on one with a mortgage professional.

If you are selling your existing home but not buying a new property within the 90 day period or you are moving outside of the Canada, you may avail of having someone assume your mortgage.  In short, an assumable mortgage means someone can take over your mortgage.  Since the financial institution still maintains the mortgage, this will allow you to move forward in your plans and avoid the pre-payment charge.  There maybe be underlying conditions if your mortgage is assumed, again this is best discussed with a mortgage professional.

Don’t worry if you didn’t understand every point made above. The important thing is being aware of the options available.  This allows you to make an informed decision that is right for you. Ask questions. Re-ask if you are unsure of the answer.  This is your future and you deserve to know what is available to help you accomplish your goal.

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New listings near downtown St. John’s 37 Golf Ave

July 30, 2010 · Filed Under First Time Buyers, New MLS Listings, St. John's Investments, St. John's MLS listings and St. John's Real Estate · Comment 

**SOLD** Great Location near downtown St. John’s.  37 Golf Ave – $159,900 Spacious 5 bedroom home with two bathrooms located within walking distance to Mun and close to St. Clare’s Hospital. Large deep lot. Main floor laundry. Hot Water Radiation heat. Mostly new vinyl windows. 125 Amp Breaker Panel. Off street parking. Great Investment property.  MLS:157071 Call Fraser or Stephen Winters for more information.

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House for Sale in West End St. John’s – 24 Barachois Street

June 9, 2010 · Filed Under First Time Buyers and St. John's MLS listings · Comment 

**SOLD** Fraser and Stephen Winters have just listed 24 Barachois Street.  Located in the west end of St. John’s, this 2 + 1 bedroom end unit has MANY upgrades. It is freshly painted from top to bottom. Has new flooring throughout entire home.  New lighting fixtures installed throughout.  Even has a new hot water boiler.  There is nothing to do but move right in.  Excellent home for a first time buyer or used as an investment property.  Close to the Village mall. Vinyl windows and vinyl siding. $35 a month condo fee. MLS: 155060 Asking price is $174,900

For a virtual tour of 24 Barachois Street click here

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26 Laurier Street – New Home for Sale in St. John’s East End

June 2, 2010 · Filed Under First Time Buyers, New MLS Listings, St. John's East End and St. John's MLS listings · Comment 

**SALE PENDING** Fraser and Stephen Winters have just listed 26 Laurier Street.  Located in a great neighborhood in the East End of St. John’s.  Extremely well cared for 3 bedroom bungalow with numerous upgrades. Hardwood and ceramic floors throughout main floor. Large eat-in country style kitchen with plenty of cupboard space. Formal living room with a propane fireplace and custom mantel with granite. Main floor bathroom completely upgraded. Vinyl windows and premium vinyl siding complete with rigid insulation underneath & band saw pine trims. In the basement you will find a recently completed recroom with plenty of space for entertaining or for the children to play in. There is a convenient spare room that can be used as a 4th bedroom or office and a new 3 piece bathroom. Recently installed Venmar HRV. The grounds are nicely landscaped with a fully fenced backyard, 12×16 patio and mature trees. 12×12 wired shed. Asking price is $274,900  MLS:154760

For a virtual tour and interior photos of 26 Laurier Street click here

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