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Archive for the ‘Real Estate Market’ Category

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 »

Why is the outlook for the housing market so positive for this year?

Monday, February 14th, 2011 by Dan Cooper

The mood in the housing market has certainly rebounded. For those of us in the real estate industry, we saw a better than anticipated finish in 2010 and see the continued optimism in early 2011. This was confirmed this month by the Canadian Real Estate Association (CREA) which has revised its 2011 forecast upwards for home sales activity.

“Homebuyers recognize that low mortgage interest rates represent a once in a lifetime opportunity,” says CREA President Georges Pahud. “At the same time, they expect that rates will rise, so they’re doing their homework in order to understand what it could mean in terms of higher mortgage payments down the road before they make an offer.”
CREA forecasts that the national sales activity will rebound by three percent, which is roughly on par with the 10-year average. The upward revision to CREA’s forecast for 2011 reflects recent improvements in the economic outlook and a further expected improvement in consumer confidence.

Recent changes to mortgage regulations (the maximum amortization period was recently shortened to 30 years from 35 and the maximum homeowners can borrow in refinancing mortgages was reduced to 85 percent from 90 percent) will further ensure buyers don’t get in over their heads; that they won’t buy more home than they can afford and find themselves in trouble when interest rates rise – which they will inevitably do.

“The new changes to mortgage regulations will likely bring forward some sales into the first quarter that would have otherwise occurred later in the year, particularly in some of Canada’s more expensive housing markets,” says Gregory Klump, CREA chief economist. “This is expected to produce a milder version of the volatility in sales activity that we saw last year which resulted from additional transitory factors.”

Three transitory factors contributed to volatility in sales activity last year: changes in mortgage regulations, the early withdrawal by the Bank of Canada of its conditional commitment to keep interest rates on hold until the second half of 2010, and the introduction of the HST.

CREA expects that home sales activity will gain traction after dipping in the second quarter as the economic recovery and job growth continue, incomes grow and consumer confidence further improves. “Even though mortgage interest rates are expected to rise later this year, they will still be within short reach of current levels and remain supportive for housing market activity. Strengthening economic fundamentals will keep the housing market in balance, which will keep home prices stable,” says Klump.

In the Oakville and Burlington market, sales were down last month compared with the same month last year, but prices were up – indicating we are still in a solid real estate market with home values remaining strong. In Hamilton/Burlington sales were down 7 percent but prices were up 9.4 percent. In Oakville sales were down 11 percent and the average price was up 9 percent. The average price rose from $590,657 last year to $644,849 in January in Oakville.

Pahud says the housing market and buyer psychology is different now than it was at the beginning of last year, and advises that buyers and sellers consult their realtor to understand local market trends.

I’ve consistently advised that the key to finding a good deal or selling quickly for top dollar is to work with a broker who knows the community. The professionals at The Dan Cooper Team of Royal LePage have such a track record, which has led to our achieving the Number 1 Team in Canada for Royal LePage for 7 of the past 10 years.

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, Mortgage, Oakville Real Estate, Real Estate, Real Estate Market, Statistics | No Comments »

How the latest changes to the mortgage rules will impact you

Monday, January 31st, 2011 by Dan Cooper

Recently Finance Minister Jim Flaherty announced changes to Canada’s mortgage rules. He reduced the maximum amortization period, lowered the amount Canadians can borrow in refinancing their mortgages and withdrew government insurance backing on lines of credit secured by homes.

The maximum amortization period was shortened to 30 years from 35 and the maximum homeowners can borrow in refinancing mortgages was reduced to 85 percent from 90 percent. He said he had to take this action to save Canadians from financial risk. He said he was not concerned about Canada’s mortgage default rate, but rather about those who are borrowing as much as possible.

“We’re seeing people borrow to the max, and borrowing to the max at low interest rates. Most Canadians are doing that,” he says. Home equity lines of credit and loans have surged in Canada, rising at almost twice the pace of mortgages over the past decade to account for 12 percent of overall debt, according to a BNN report.

CIBC chief economist Avery Shenfeld referred to the move as putting “Canadians on a debt diet” as household debt levels sit at record levels. “Policy makers now have that credit buildup in their policy gun sights and will use higher rates and regulatory changes to bring spending into better line with income, and mortgage demand,” he wrote recently.

What does this mean for us in the Oakville and Burlington area? Who does it really affect? Most experts see the changes affecting only the extreme margins. Those with amortization between 30 and 35 years represent about 5 to 10 percent – a fairly low percentage in the larger picture.
TD Canada Trust has calculated that the changes might reduce national home sales by 20,000 units and cut 2 percent off the average price of a home. TD also calculated that homeowners who refinanced with less than 15 percent equity represented only a tenth of the total volume. Again, this will only affect the ability of homeowners at the extreme margins to access refinancing,

It is safe to assume these changes will not have a significant impact on the Oakville and Burlington markets where home prices have held their value and household income is among the highest in the country. Being affluent doesn’t mean people don’t become overextended, of course, but not at the proportions perhaps found in other parts of the country, which influences statistics and spurs the government to take action.

Investing wisely and maintaining a sound household budget will ensure Flaherty’s changes will have little impact on your future plans. If you have any questions about those changes and how they impact your decision to sell or your ability to buy, feel free to call The Dan Cooper Team.

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, Buying, Finances, Interest Rates, Mortgage, Oakville Real Estate, Planning, Real Estate, Real Estate Market, Selling | No Comments »

The Top 6 Reasons To List Your Home For Sale Before The Spring Rush

Monday, January 24th, 2011 by Dan Cooper

Dan Cooper For Sale Sign

There is a common misconception that the best time for anyone to sell their home is in the spring. We’ve put together the following information: to show you how you can maximize your return by acting sooner, rather than later.

Reason #1: Less competition. The winter months are traditionally slower times for new listings. April through June usually sees an increase of up to 70% in the number of new homes hitting the market! This means more choice for buyers and more competition for you. The more properties prospective purchasers have to choose from, the less likely they are to submit full price offers. Lower inventory also means a greater likelihood of competing offers, resulting in a higher sales price, and a higher net return on your sale.

Reason #2: Only serious buyers look at this time of year. Winter months have a tendency to weed out the lookers from the serious buyers. People who are ready and willing to move don’t care if there is snow on the ground or that it gets dark early. They have made a decision to move and they want to move now.

Reason #3: Interest rates are predicted to rise in 2011, quarter by quarter over the year. Buyers are anxious to get settled before any possible rate increases occur. Increases in rates decrease the amount of mortgage a family can afford, cutting them out of certain price ranges. Buyers will be looking to maximize their purchasing power early in the year.

Reason #4: Relocation is at its highest at this time of year. Companies are anxious to get new employees settled for the beginning of the year. Statistically, corporate relocations rise by up to 15% from November to March.

Reason #5: Current market stability. Right now, the market is perceived as stable, leading to greater consumer confidence. This is in contrast to many months through late 2009 and early 2010 when the media created a false sense of instability which had caused many buyers and sellers to withdraw from the market.

Reason #6: The perfect gift to yourself – a new home. Start your year off the best possible way – in a new home for yourself and your family. By the time everyone else decides to list their home for sale, you will be moved in to a new comfortable space.

To find out if the time might be right for you to sell, or to see how you can benefit from today’s market conditions, call The Dan Cooper Team.

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, Interest Rates, Marketing, Mortgage, Oakville Real Estate, Planning, Real Estate, Real Estate Market, Selling | No Comments »