Real Estate Market - Oakville & Burlington Real Estate Blog - Dan Cooper

Archive for the ‘Real Estate Market’ Category

Housing market to remain strong to year end

Wednesday, October 19th, 2011 by Dan Cooper

The resale housing market continues to show strong gains as we enter fall. And if low mortgage rates continue, we’re looking forward to a vibrant market through to the end of the year.

Record low mortgage rates remain the most significant factor in buyers’ housing purchase decisions, according to Jack McCrudden, president of the Oakville, Milton and District Real Estate Board. “Even though recent Statistics Canada figures indicate a decline in consumer confidence across the country, homebuyers in this area are still influenced by record low mortgage rates and increased choice in the housing market.”

Similar opinions are being expressed in the Hamilton/Burlington area and Greater Toronto.
Ann Forbes, president of the Realtors Association of Hamilton-Burlington, says, “We are heading into the fall market with positive reports on the market. In general, we are seeing better-than-average results across the board when we look at last year and the 10-year average.”

And in Toronto, Jason Mercer, senior manager of market analysis for the Toronto Real Estate Board, says, “Strong price growth through the first nine months of the year was mitigated to a great deal by low interest rates and rising incomes. As buyers continue to take advantage of the affordable home ownership options in the GTA, we remain on pace for the second best year for sales under the current TREB market area.”

What are we talking about exactly?

In Oakville, sales were up by 3.5 percent and the average selling price increased five percent in September compared to the same month last year. Year-to-date, the average sale price is up by 8.5 percent to $608,301 from $561,197 this time last year.

The biggest gains were witnessed in Milton, recognized as one of the fastest growing communities in Canada, where the number of sales increased by 39 percent and the average price jumped by 16 percent last month compared to September 2010.

In Hamilton and Burlington, the condominium market saw the largest gain with a 13.9 percent increase in the number of sales when compared with September last year. Prices, however, dipped slightly (less than one percent) last month. The area covered by RAHB includes Grimsby, Dunnville and Caledonia. Burlington alone saw the number of sales increase by 11.4 percent, but experienced a drop in pricing by 3.8 percent in September compared to September 2010.

Sales in Greater Toronto were up 25 percent and the average selling price for detached, townhouse and condos were all up about nine percent in September compared to the same month last year. In fact, over recent months the number of listings has improved so the Toronto board expects homebuyers will have more to choose from in the months ahead.

McCrudden appears to sum up the current climate with these comments, “If low mortgage rates continue, we’re looking forward to a strong market through to year end.”

Whether you are buying or selling, it is important to work with a broker who is familiar with the area, has a professional team, strong marketing initiatives and a proven track record for providing results. At The Dan Cooper Team, we are available for our clients 24/7, we have an innovative and effective marketing program and we are selling homes for top dollar – fast. For more information or a free home evaluation, call the Dan Cooper office.

Dan Cooper is an award-winning broker with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009, 2007, 2005, 2002, 2001, 2000 and 1999. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his innovative and interactive website at DanCooper.com. Be sure to catch the Dan Cooper Real Estate Series on DailyWebTV.com. For his free booklet How To Sell Your House For Top Dollar – Fast! or his Guide to Oakville Real Estate, please call The Dan Cooper Team.

Posted in Real Estate Market, Selling, Statistics | No Comments »

Summer approaches hot autumn for real estate

Friday, September 16th, 2011 by Dan Cooper

It was a hot summer, both in temperatures and real estate. And the strong market shows no signs of slowing down as we enter the fall. The volume of sales and house prices in the Oakville area last month were in double digits. The story was similar in Burlington and the rest of the GTA.

“It is generally expected that mortgage rates will remain low into 2012, making it a good time for first-time buyers to enter the market,” says Jack McCrudden, president of the Oakville, Milton and District Real Estate Board. “Going into the fall, the increase in new listings will provide both new and move-up buyers with more choice, and these two factors point to a strong stable market over the next few months.”

This is what he is talking about. Area existing home sales increased by 10.3 percent last month over August last year and the total value of all sales in August showed a 21.4 percent gain. In Oakville, the average sale price increased by 16.5 percent in August over the same month a year ago. The average price this year was $613,408 compared with $526,451 in August 2010. So far, for the year, prices have increased by nine percent overall compared to the first eight months of 2010.

The Burlington and Hamilton market experienced increases in listings, sales and average sale price for the third straight month. The number of homes listed in August increased by 24.1 percent, sales were up 12.5 percent and the average house price gained four percentage points over August 2010. In the condominium market, the average sale price was 2.5 percent higher over the same month last year.
Bear in mind that the statistics coming out of the Realtors Association of Hamilton-Burlington include communities such as Caledonia and Dunnville in addition to Greater Hamilton. When it comes to Burlington, I believe the stats would closer match those of Oakville than Hamilton. I’m very familiar with the Burlington market and what I am seeing are increases that are in line with what’s happening in Oakville.

As we see the market continuing to rebound, I have to emphasize how important it is to select an effective broker; someone who will ensure you sell your home for the best price possible. Are they using the best print options, how effectively are they using the internet, how often is your listing going to be profiled, are they utilizing new technology such as QR codes? The Dan Cooper Team is proud to being doing all of this and more.

Innovative marketing initiatives and investment, knowledge about the marketplace, commitment and exemplary service differentiate The Dan Cooper Team. The result is that we are achieving accomplishments that illustrate the Dan Cooper difference.

Our track record speaks for itself – top team in Canada for Royal LePage in seven of the past 11 years. It’s an accomplishment we are proud of and one that our clients have appreciated when we sold their homes quickly and for top dollar.

Posted in Real Estate Market | No Comments »

How much does weather affect the real estate market?

Friday, September 16th, 2011 by Dan Cooper

An unusually snowy winter, a prolonged rainy spring or a blistering hot summer – such as the heat wave in Ontario earlier this summer – can have a significant near-term impact on home sales, according to a recent national survey by Royal LePage Real Estate Services Ltd.

If a region is experiencing a heat wave or an unusually long winter, sellers may be more reluctant to list their homes and buyers may be less willing to get out into the market to look for a property.

“With all the different factors that affect the housing market, weather can often be over-looked. Severe weather, be it extreme heat, wet or cold, can prolong or delay seasonal sales cycles by weeks or even months,” says Phil Soper, chief executive officer of Royal LePage Real Estate Services Ltd. “The findings indicate that harsh weather may impact the number of homes bought and sold during a particular trading period. While this doesn’t speak directly to housing prices, a short-term drop in demand can impact local home values for a period of time. There is no evidence, however, that weather events change home prices over the longer term.”

If you want to sell your home during seasons when the climate is unpredictable, there are strategies to beat the weather. When listing a home in the hot summer months, invest in air conditioning or other solutions to cool off a home during open houses. Watering your lawn and gardens will maintain that all-important curb appeal – after all, first impressions are critical.

In the depth of winter, heating your home to a cozy temperature is most important, as is ensuring your property is accessible with roadways cleared of snow. If potential buyers can’t navigate the driveway or paths, their mood is predetermined even before they enter your home.

“People love to talk about the weather and the real estate market. While it is interesting that the former can impact the later, variables such as interest rates and employment levels are more important in determining the trajectory of our housing industry,” Soper concludes.

As we enjoy nice weather going into fall, low interest rates and a quiet consumer confidence, now is a good time to consider selling. When choosing a real estate agent, choose a broker who is knowledgeable about the area, has an innovative marketing program and has a proven track record for getting results. When deciding who to list with, visiting a broker’s website and checking the testimonials from other clients will provide a good starting point.

Dan Cooper is an award-winning broker with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009, 2007, 2005, 2002, 2001, 2000 and 1999. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his innovative and interactive website at dancooper.com. Be sure to catch the Dan Cooper Real Estate Series on DailyWebTV.com. For his free booklet How To Sell Your House For Top Dollar – Fast! or his Guide to Oakville Real Estate, please call The Dan Cooper Team.

Posted in Real Estate Market, Weather | No Comments »

Looking ahead during economic uncertainty

Tuesday, August 16th, 2011 by Dan Cooper

These past couple of weeks have been one of the worst for financial markets in quite some time. Stock market indexes around the world suffered their largest one-day losses in years, further extending losses that began back in the spring.

The economic uncertainty both in the U.S. and Europe and the decision by S&P to downgrade the U.S. credit rating have been the driving force behind all this financial distress. The rational perspective is that while the S&P decision is unprecedented for America, the downgrade changes absolutely nothing. It is simply a confirmation of market concerns about the fiscal situation. The most important point is that even with a lower credit rating, the U.S. government is still solvent. Investors in U.S. Treasuries will still get paid the interest they are owed and they will get the principal back upon maturity of the bonds.

So what does this all mean for Canada? For many months now, TD Economics has expected a rotation between drivers of growth in the Canadian economy, from consumer and government spending to exports. What recent developments imply is that that rotation may take longer than originally anticipated. The U.S. and European economies remain the destination of more than 80 percent of Canadian exports. Though the sector will likely get some offset due to the weaker loonie, continued weakness in those markets would imply that we may not be able to depend on the export sector to the same degree that we had expected, and more focus must remain on domestic drivers of growth – specifically, business investment and consumer spending.

On the plus side, TD Economics says that the latest job report indicates there remains strength in those domestic factors. The private sector added almost 95,000 new jobs to the Canadian economy, many of them full-time positions. Despite this robust job creation, however, household debt remains at record levels and the eventual rise in interest rates will force households to allocate an increasing share of income on servicing debt. As a result, consumer spending will be negatively impacted going forward, and without the boost from the export sector, real GDP growth will likely suffer in the quarters ahead, TD economists believe.

The Bank of Canada will be wary of raising rates too far ahead of the U.S. Federal Reserve. With the U.S. a long way off from reaching full capacity and a considerable amount of excess slack to still exist in 2013, the Federal Reserve is likely to keep monetary policy highly accommodative through 2011 and 2012. Currently, the Bank of Canada overnight rate is 75 basis points higher than the U.S. Fed Funds rate. If interest-rate spreads are further widened significantly, the Canadian dollar will experience further upward buying pressure, which the Canadian central bank would likely deem undesirable, since it would put the export recovery at risk.

With Canada’s inflation trends behaving well, the Bank of Canada will not likely move off the sidelines until January 2012, at which point it would hike rates in quarter point increments to achieve an overnight rate of two percent by May of next year. After a pause in the second half of 2012, we look for the overnight rate to rise to three percent in 2013.

Despite all this economic volatility, real estate continues to be a reliable investment, especially in areas of high demand such as Oakville and Burlington where house prices steadily increase year after year. Whether you are buying or selling, it is critical to seek help from a professional who knows the area and has the skills to negotiate the best price on your behalf.

Dan Cooper is an award winning Broker with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his innovative and interactive website at DanCooper.com. Be sure to catch the Dan Cooper Real Estate Series on DailyWebTV.com. For his free booklet How To Sell Your House For Top Dollar – Fast! or his Guide to Oakville Real Estate, please call The Dan Cooper Team.

Posted in Burlington Real Estate, Finances, Oakville Real Estate, Real Estate Market | No Comments »

Does growing sales volume mean the housing market is heating up?

Monday, July 11th, 2011 by Dan Cooper

We are now at the halfway mark for the year and the housing market has been quite interesting to say the least. After a slow start in the first few months, the market appears to be steadily improving with the volume of sales making double-digit gains.

The number of homes sold in Oakville increased by 16.8 percent in June. This followed an 11-percent increase in May and heralds a strong market for resale homes, according to the Oakville Milton and District Real Estate Board. “Sales have increased for the second month in a row,” says Jack McCrudden, President of the real estate board. “At the same time, prices are moderating, encouraging more buyers into the market.”

Meanwhile, the number of new listings, those homes being put on the market, is relatively consistent. So we have the number of homes being sold outpacing the number of homes being listed. McCrudden, however, says there is still room for sellers wanting to attract interested buyers. “If interest rates stay as they are, the Oakville, Milton area can anticipate a healthy market over the next few months, with opportunities for both buyers and sellers.”

That’s certainly good news for anyone wanting to sell their home, but also signals the importance of selecting a broker who truly knows the market and is able to market your home effectively. Carefully check the broker’s credentials – how long have they been established in this market, how are they marketing their homes, how efficient are they, and what are their results?

What’s happening with prices? In Oakville, the average price of a home dropped 3.5 percent to $599,504 in June compared with June last year. In Milton, the average price increased three percent.

For the first six months of the year, however, the average price in Oakville increased by seven percent, and in Milton it increased by four percent.

The statistics for Burlington had not been released as I was writing this column, but Burlington has typically been on par with Oakville, so I suspect the story is much the same there.

For Greater Toronto, home sales were up a whopping 21 percent in June compared with June 2010. This number represents the third best June on record – behind 2007 and 2009. “This strong June result capped off an interesting first half of 2011,” says Toronto Real Estate Board President Richard Silver. “The pace of sales was a bit sluggish at the beginning of the year, but rebounded in May and June. Because of the positive affordability picture, homebuyers remained confident in their ability to purchase and pay for a home over the long term.”

The average price for June transactions in Greater Toronto showed a 9.5 percent increase.
As we see the market continuing to rebound, I have to emphasize how important it is to select an effective broker; someone who will ensure you sell your home for the best price possible. Are they using the best print options, how effectively are they using the internet, on what websites and how often is your listing going to be profiled, are they utilizing new technology such as QR codes? The Dan Cooper Team is proud to being doing all of this and more. Our track record speaks for itself – top team in Canada for Royal LePage in seven of the past 10 years. It’s an accomplishment we are proud of and one that our clients have appreciated when we sold their homes quickly and for top dollar.

Dan Cooper is an award-winning broker with Royal LePage Real Estate Services Ltd., Brokerage – the Number 1 Royal LePage Team for Canada in 2009. He can be reached at 905.338.3737, direct line at 905.849.3303 or through his innovative and interactive website at DanCooper.com. Be sure to catch the Dan Cooper Real Estate Series on DailyWebTV.com. For his free booklet How To Sell Your House For Top Dollar – Fast! or his Guide to Oakville Real Estate, please call The Dan Cooper Team.

Posted in Burlington, Milton, Oakville, Real Estate Market, Selling, Statistics | No Comments »