dancooper.com
rss youtube twitter facebook linedin
home team listings blog marketing clients videos contact

Archive for the ‘Real Estate Market’ Category

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

The Dan Cooper Team - Rising Sales

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 »

Be prepared for a hot spring in the local real estate market

Thursday, April 21st, 2011 by Dan Cooper

Dan Cooper For Sale Sign

Spring is traditionally a strong season for real estate. It’s a time of the year when nature begins anew, putting us in the mood for a new beginning as well. And from all accounts, this spring appears to put us back on track after a long recession.

A number of surveys and real estate board reports are indicating that we can expect everything from a balanced market to a robust season – depending on where you live. This area will be on the robust side. The Oakville and Burlington markets have consistently been among the strongest in Canada when we measure our performance against the country’s leading communities.

According to the most recent Royal LePage House Price Survey, the best performing major markets in the first three months of this year are Vancouver where the price of a standard two-storey home rose by 9.7 percent and Montreal where detached bungalows rose by 6.3 percent.

The average house price in Oakville rose 8 percent over the same period – again placing this market as one of the best places in which to invest in real estate. “As we move into spring, which traditionally is a good time for buying and selling homes, I think we’ll see a slight upward trend in sales,” says Jack McCrudden, President of the Oakville Milton and District Real Estate Board. “In fact, sales have been increasing month over month for the past three months. All things being equal, it should be a good spring for buyers and sellers.”

The average sale price for March in Oakville increased 6 percent over March last year to $572,909. In Milton, the average sale price in March was $409,207, an increase of 7 percent. Over the first three months of the year, Oakville increased by 8 percent to $609,744 and Milton by 3 percent to $396,989.

In Burlington and Hamilton, the Realtors Association is saying this year will be a return to a normal year. Sales activity was down for the first three months, but the average sale price increased by 3.5 percent, which followed the national average.

“The spring market is proving to be what we would call a normal, more balanced market,” says Ann Forbes, President of the Realtors Association of Hamilton-Burlington (RAHB). “In this kind of market, we will see a good number of properties coming on the market and a good number of sales going through. There is time for buyers to shop and compare before they buy.”

Mind you, their figures take in the entire area that RAHB covers, which includes 15 cities and towns from Burlington to Dunnville. I would have to think that some of those communities will be dragging these figures down and that Burlington’s performance is not being reflected.

When you consider that Burlington recently placed third in the 2011 Best Places to Live in Canada survey conducted by Money Sense magazine, the desire to live in such a community is going to be high – and that drives up prices.

Across the country, low interest rates and a recovering economy continued to fuel activity over the past year. “Canada’s real estate market has maintained momentum coming out of 2010, indicating the post-recession recovery is continuing,” says Phil Soper, President and Chief Executive of Royal LePage Real Estate Services. He cautions that while prices will continue to creep up, most of the excess demand created by the initial drop in interest rates has been satisfied and that single digit percentage increases are more likely for the balance of the year.

That might be true on a national scale, but hot markets such as Oakville and Burlington continue to buck the trend and we will likely experience strong performances through the year.

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

Housing sales volumes are still sluggish but prices are up

Saturday, March 12th, 2011 by Dan Cooper

Real Estate Market - Dan Cooper

The latest housing stats coming out of Oakville, Burlington and the rest of the GTA are showing a continuing trend – sales volumes are down but prices are up. This is something I’ve addressed in earlier columns. In one respect the market is soft when it comes to activity, but homes are holding their value which proves that real estate is always a good investment. Let’s look at some of the latest statistics across the board.

In Oakville the number of homes that sold was down a whopping 21 percent in February compared to February 2010. Putting that into perspective is Jack McCrudden, President of the Oakville, Miton and District Real Estate Board. “Area sales have declined compared to last year when the resale housing market was driven by concerns over interest rates, the impact of the HST and potential changes to mortgage rules,” he said.

The rush to purchase homes before the HST came into effect last July created a buying boom. Yet, prices in Oakville last month were 12 percent higher than February 2010. The average home price last month was $645,904 compared to $577,628 last year. In Milton, sales volume matched last year’s volume and prices were up one percent, $385,002 compared to $382,396.
Hamilton and Burlington displayed the same pattern with sales down by 8.7 percent but prices up by 3.7 percent compared to February last year.

“While the numbers show that our sales and listings are down from last year, you have to remember that February of 2010 was the beginning of the recovery from the uncertain market in the early part of 2009,” according to Ann Forbes, President of the Realtors Association of Hamilton-Burlington. “Our average sales price continues to climb, year after year. Buying a property in the Greater Hamilton, Burlington and outlying areas is a good investment.”

Across the GTA, sales were down 14 percent but prices were up by five percent, says Toronto Real Estate Board President Bill Johnston. “Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong.”

What’s interesting is that last month’s sales may have been 14 percent lower than last year, but were 50 percent higher than sales in February 2009 (during the recession) and slightly higher than the average February sales volume over the previous 10 years. Jason Mercer, the board’s senior manager of market analysis, further said that market conditions remain tight in the GTA. There is enough competition between homebuyers to promote continued price growth.”

The key to selling your home is to choose an experienced realtor who will market your home effectively. Innovative advertising, 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. In fact, we have been the Number 1 team in Canada for Royal LePage for seven of the past 10 years, which is a testament to our ability to sell homes fast in the Oakville and Burlington areas.

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, Burlington Real Estate, Buying, Finances, Interest Rates, Milton, Mississauga, Mortgage, Oakville, Oakville Real Estate, Real Estate Market, Selling, Statistics | No Comments »