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'The World Of Real Estate' Category

Canadian Housing Market Is Going To Crash!! Or Is It???

“Figures often beguile me, particularly when I have the arranging of them myself; in which case the remark attributed to Disraeli would often apply with justice and force:

“There are three kinds of lies: lies, damned lies and statistics.”

- Mark Twain’s Own Autobiography

In July the numbers of homes sold in Canada dropped by 30% from July 2009. The media stated categorically that the Canadian real estate market was crashing. Nothing like doom and gloom to sell newspapers. Don’t worry about the facts, just have a great headline.

The Globe & Mail managed to contradict themselves in their headline; sales down in bold but in smaller print average price still up.

I recently read that:

“Statistics are usually used like a drunk person uses a lamp post – more for support than for illumination.”

Let me say the “average price” in Canada does NOT matter.

Real estate is a local industry; national issues may impact the market but supply and demand depend on local conditions. Remember that in the housing market national averages are disproportionally “skewed” by figures from Toronto and Vancouver.

The market in Wasaga beach is driven by retirees, recreational home buyers and families looking for value who are prepared to commute to work.

Again the “fact” that nationally sales dropped 30% in July does not matter. Look at what happened in the real estate market in Wasaga Beach in July. I am not saying that the market was good, bad or indifferent, just that these are the relevant figures (and to a lesser extent the surrounding Georgian Triangle.)

As they say “don’t believe the hype” and take any media news good or bad, with a pinch of salt. Reserch what is happening in the relevant area.

As an aside undoubtedly the national figures for July were influenced by the introduction of HST in Ontario and BC plus the expectation that mortgage rates were going to increase.

“Century 21 Agent Dominates Google”

It’s Almost A Cliche But Buyers DO Start Their Search On the Internet

The number may vary from 75% up but he truth is that the vast majority of home buyers start their search for a home on the internet.

To sell your home it is critical to have a focused presence on the web.

I was recently asked to host a webinar for US real estate agents on the importance of Google. Below is a brief summary of the presentation that both buyers and sellers you may find interesting.

Seniors Are Richer Than Ever & That Won’t Change Soon. Good News For Real Estate In Wasaga beach

Yes You Read That Correctly, Seniors Have “Never Had It So Good”

Contrary to popular opinion and echoing the British Prime Minister Harold Macmillan in 1957, Canadian Business Magazine recently printed a special report on ” Why There Is No Retirement Crisis.”

Consider these facts:

• The incidence of seniors in poverty has improved from around 1 in 3 during the 1950’s to 1 in 10 today.
• Despite being generally healthier and longer living, fewer seniors than ever before are wroking.
• The average after tax income of elderly families in 2008 was $55,900, more than single parent families of working age.
• Seniors income growth has outpaced every other age group for 4 decades.
• Senior couples are now the wealthiest demographic in Canada.

The report concludes that the current crop of retirees is doing well financially and the next one, the “Baby Boomers“,  will almost certainly enjoy a comfortable retirement too. The older Boomers represent the most affluent generation of Canadians EVER.

Now it is no secret that Wasaga Beach is a retirement destination. The lifestyle and relatively cheap property prices attract retirees or the soon to retire.

The fact that these seniors arrive with cash is great news for the real estate market. Raised bungalows must make up over 90% of the homes in Wasaga Beach and provide the space without the stairs that seniors enjoy.If you are selling your house remember “Your Grandpa Is Cool With The Internet” and ensure your agent is making full use of the internet to promote your listing.

Smile next time you see a retired couple as that generation helps enormously in keeping the Wasaga Beach real estate market healthy.

Is Confusion Over HST Affecting Home Sales?

CBC News Study Blames Confusion Over HST On A “Slide In Home Sales”

There was an interesting article on cbc.ca yesterday that stated:

“Residents of Ontario and B.C. are unsure about how the harmonized sales tax (HST) affects real estate transactions, a new study finds, and the confusion is being blamed for a slide in home sales.”

According to the Toronto Real Estate Board home sales in Toronto fell by 34% in July and that home sales were at the lowest level since 2002.

Now the Toronto market affects Wasaga Beach where buyers from the city are looking for second homes, retirement homes or just more value for their $.

BUT we are talking about one months figures NOT a trend. Also Toronto is part of Ontario but does not reflect the whole province although it is often portrayed that way. Just as the hot market in Toronto of the last few months has not been seen here in Wasaga Beach nor will this 34% fall in sales.

TREB president Bill Johnston revealingly says:

“The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring.”

So the market is balanced not in free fall as the initial comments suggest.

So why is the new HST being made the fall guy? A survey by Royal LePage found that 43.9 per cent feel the tax is playing a part in cooling the housing market. This was a survey of their REALTORS® in Ontario and B.C. not of home buyers.

“According to our Realtors who work in B.C. and Ontario communities every day, misconceptions about the HST are having an effect on the market in both provinces,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services, in Toronto.

“According to the brokers, 46.7 per cent of comments from buyers and sellers indicate confusion about how the new tax affects home sales. And 57.1 per cent of Realtors say they get “many” questions about how the tax works.”

Not the most scientific results. Comments “indicate” confusion and half the REALTORS® get “many” questions. I wager that this has more to do with the agents not understanding how the HST affects real estate and not bothering to educate themselves about it.

If you want some answers about HST and buying or selling a home check out this article and also this one.

Sellers! Invest In Curb Appeal To Sell Your Home Quickly

A Lack Of Curb Appeal Can Stop Buyers From Even Viewing A Home For sale.

It’s a cliche but you don’t get a second chance to make a first impression. It’s critical to pay close attention to the front exterior of your home before listing and it doesn’t need to cost a lot.

Here’s some ideas that won’t break the bank and help to create that all important first impression when the buyer arrives. Remember people buy with emotion and then justify with logic:

• Clean out all weeds, trim back bushes and tidy up with a wood chip or stone mulch.
• Had flower beds or pots with more mature plants so it looks “finished.”
• Paint the front door and replace exterior light fitting door fixtures.
• Mow the lawn regularly, get rid of weeds and re seed where necessary.
• Clean the windows. They will sparkle from the outside and brighten the home inside.
• Add a bistro table and chairs if you have room on the proch or veranda to add that stylish touch. Buyers will imagine sitting there with a glass of wine relaxing.

A bit of hard work and a small amount of money can ensure that buyers enter the front door in a very positive frame of mind.

6 Top Renovations To Increase Your Homes Value

Get The Most Value From Renovations With These 6 Top Projects

• Landscaping Just think “Curb Appeal.”

• Kitchens This room is the heart of a home.

• Floors Buyers love hardwood floors ( or a good laminate.)

• Paint An easy and inexpensive way to breath new life into a home.

• Fireplaces Makes a house a home, especially in our Canadian winters.

• Bathrooms Next to the kitchen possibly the most important room in the house.

Top Tips To Sell Your Home Fast

With The High Number Of Homes For Sale In Wasaga Beach These Tips Will Help Sellers Stand Out From The Competition

1. Do your to-do list:
   Fix all of those nagging things you have let go in your house over the last few months, or years.
2. Get rid of anything personal:
   Pictures, kids artwork, 1000 refrigerator magnets, etc.
3. Clean, Clean, Clean:
   If you can see it, clean it. Also, cookie scented candles are your friend.
4. Staging:
   Move around the furniture and get rid of any excess to make your rooms look BIG. This will also help if you have a particular niche or corner that a buyer may not know how to use.
5. Make the floors POP:
   Professionally clean and stretch the carpets, clean the wood and linoleum. If all else fails then it might be cheaper to replace the carpets than have the home sit on the market another 60+ days just because buyers cannot get past your stained or dark carpets.
6. Curb appeal:
   Add some flowers, mulch the beds, trim up the tree limbs, paint the handrails, and get rid of the 1000 kids toys.
7. Marketing:
   Pick the right agent.  Marketing will include not just the MLS but also every other online tool available (i.e. Craig List, etc.)
8. Price, Price, Price:
   Choosing the correct price is critical. Everyone wants top dollar for their home. However, to sell your house fast it has to be priced right for your specific area. Buyers will pay a fair price but they also want a deal. To sell a house fast it is best to price the house just slightly below the market area.
9. Be prepared to negotiate:
   This may not necessarily be price but could include other things like fixtures, appliances, or your beloved big screen TV.

Great tips from Scott Carter.

4 Quick Questions To Help Buyers Looking For A New Home

Are You A Confused Buyer? Answer These 4 Questions Before Looking For A New Home

Someone said that moving and marriage are 2 of the most stressful events in one’s life. I could add watching England fail again in the World Cup but that is my own cross to bear.

Before starting a search for a new home, just answering these 4 questions will help buyers focus on their requirements:

• Why are you moving?
• What time frame do you need to move in.
• Financial situation; how much do you have to spend.
• Future plans; children, schools, employment or retirement for example.

Obviously the situation may be more complex but answering the above will provide a great starting point to search from. Your wants, needs and budget can then be compared to what is on the market.

Simple eh

Two Reasons To Sell Before You Buy

The Dilemma: ” Should You Buy Or Sell First?”

There is no right or wrong answer of course. It all depends on each individual’s position.

BUT here are 2 “reasons” to Sell first worth considering:

1. You can often get top dollar for your home if you are not under pressure to sell.
2. You’re in a better position to negotiate on the buying side of the transaction; sellers love “CASH BUYERS.”

Currently there is a high level on inventory, of homes for sale in Wasaga Beach, so selling before buying may be attractive for the reasons above. A buyer “should” be able to find a suitable home especially as most people would have been viewing and researching during the sale of their home. Just don’t fall in love with one particular home that then may not be available when you have actually sold; have a few options.

However what if you can’t find your dream home? There is a down side to selling first:

1. You compromise and buy a home that maybe just ok.
2. Rental accommodation may be an answer but this means moving twice and spending money on rent.

Confused? The “SPP” condition on the Agreement of Purchase and Sale is often successfully used:

“This Offer is conditional of the sale of the Buyers Property known as 123 Main Street, Any City. Unless the Buyer gives notice in writing delivered to the Seller personally or in accordance with any other provisions for the delivery of notice in the Agreement Of Purchase And Sale or any schedule thereto no later that 6pm on X month year that this condition is fulfilled, this offer shall be null and void and the deposit shall be returned to the Buyer in full without deduction. The condition is included for the benefit of the Buyer and may be waived at the Buyers sole option by notice in writing to the Seller as aforesaid within the time period stated herein.”

Your Grandpa Is Cool With The Internet

Home Buyers Of All Ages Use The Internet

The  quoted figure may vary from 70% to 80% to over 90% but it is clear that the majority of home buyers start their search on the internet.

Sellers need to ensure that their real estate agent has a strong internet presence; not just MLS.com but the various social media sites, a single property web page, blogs etc.

Some recent data from the US makes interesting reading about the over 50 age group. One might presume that the older generation are not so internet savvy. This is not the case. A new study from the AARP — formerly known as “the American Association of Retired Persons” — shows that baby boomers in the 50+ age bracket are very active on the internet.

The AARP interviewed 1,360 adults over the phone. More than a quarter (27%) aged over 50 use social networks. Facebook is the most popular — in fact, 23% of all survey respondents said they preferred it to sites such as MySpace , LinkedIn and Twitter. Another study earlier this year from eMarketer showed that boomers and seniors were flocking to Facebook, again showing a strong preference for this site over Twitter and MySpace.

When it comes to general web surfing, 49% of respondents between the ages of 50 and 64 and 40% of all adults age 50 and older said they consider themselves extremely or very comfortable using the Internet. In other words, we’re very close to seeing the majority of senior citizens embracing the web as a content medium and communication tool.

Now I know this is a American survey but the general figures I imagine would be reflected in Canada as well.

With the number of over 50’s looking to buy in Wasaga Beach, Sellers must realise that the days of just relying on a sign in the yard and an advert in the local paper are over.