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Archive for the ‘Real Estate’ Category

Will 2011 be the year to buy a home?

Monday, January 3rd, 2011 by Dan Cooper

2011

From all accounts, this Christmas shopping season was one of the strongest in the past few years as consumers shook off those recession blues and expressed their confidence in the future through their pocketbooks. And while many of you are currently enjoying the deep discounts during the Boxing Week sales, some of you will perhaps be thinking about a new home.

If the retail scene over the past few weeks is an indication that our economy continues to get back on track and that consumers are feeling more secure about the employment picture and confident in their finances, then we can look forward to some good real estate investment opportunities in 2011.

Just to confirm that 2011 promises to be a better year, a recent poll conducted for the Globe and Mail’s Report on Business revealed that Canadian executives are increasingly optimistic about the economy and that they plan to boost capital spending, hire more staff and make acquisitions. In fact, 92 percent think our economy will grow next year, albeit moderately as opposed to strong growth. This optimism is the highest level recorded in the Globe’s annual survey in more than four years. That is good news after the struggles we’ve faced over the past couple of years.

On the housing front, improving economic conditions and stable mortgage rates will help fuel a projected 5-percent increase in house sales next year, according to a recent forecast by Central 1 Credit Union. According to the firm, housing resales have climbed since last July when the introduction of the HST stalled the housing market. The rebound is thanks to low mortgage rates, improved affordability and an improving economy. Central 1 expects sales to continue to grow early in 2011 and to tail off in the second half as mortgage rates rise.

“Mortgage rates will remain well anchored and conducive to housing demand over the forecast horizon. Posted rates in 2011 will range from an average of 5.4 percent in the first quarter to 6.2 percent in the fourth quarter. Rates are projected to rise to a modest 6.5 percent by the fourth quarter of 2012,” the credit union predicts. For those of you who are considering the lower but riskier variable rates, these reflect the Bank of Canada’s policy interest rate, which has been increased three times in 2010 in 25 basis point increments, pushing the rate to 1 percent. The credit union predicts that the next rate hike will most likely be a 25 basis point increase on the Bank’s next rate-setting meeting on April 12. While the credit union says the Bank will resume its rate normalization, it expects the policy rate to reach 2.25 percent by the end of 2011 and then to 2.75 percent or higher by the end of 2012.

Trying to predict future mortgage rates and choosing a mortgage that is right for your circumstances is an important consideration for anyone buying their first home or moving up into a larger home and carrying a mortgage. There are several strategies from fixed to variable mortgages to length of amortization.

For example, selecting the length of your mortgage amortization period will affect how much interest you will pay over the life of your mortgage. While the lending industry’s benchmark is 25 years, there are shorter or longer timeframes available. The popular opinion is that shorter is better – you pay off your home faster and pay less interest over the life of the mortgage. But there are advantages to a longer amortization and next week Lee Anne Taylor of Dominion Lending Centres will outline the pros and cons when choosing an amortization period.

Until then, all of us at The Dan Cooper Team wish you every happiness for this season and throughout the coming 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 Buying, Finances, HST, Interest Rates, Mortgage, Planning, Real Estate, Real Estate Market, Selling, Statistics | No Comments »

The latest housing sales figures point to a stable market

Friday, December 10th, 2010 by Dan Cooper

Dan Cooper - Housing Cost

The Canadian Real Estate Association (CREA) recently lowered its forecast for the volume of home sales, primarily because the third quarter of this year was weaker than expected. However, the association is saying that sales activity has gained traction and that the improving momentum suggests the resale housing market is stabilizing. It’s just not as strong as they thought it would be.

“Lackluster economic and job growth, muted consumer confidence and the resumption of interest rate increases are expected in 2011,” CREA states, adding that against this economic backdrop national home sales are forecast to be down by 9 percent. While the sales volume is expected to soften, average prices continue to rise.

We continue to see this in Oakville and Burlington. According to the latest figures from The Oakville, Milton and District Real Estate Board, the number of sales in Oakville last month was down slightly from November 2009, but the average house price was up by 1 percent. The average house price last year was $590,970 compared to $598,675 last month.

Prices for the year to date show a larger jump – 7 percent compared to the same 11-month period last year. The average selling price for the 11 months last year was $526,909 compared to $561,650 this year. In Burlington, the average price for homes sold last month was $388,088.

According to Gregory Klump, CREA’s chief economist, “Housing demand and supply is stabilizing. That’s good news for home buyers, who will feel less hurried to make an offer than they did when transitory factors ignited housing demand in early 2010. It’s also good news for home sellers, who will feel more confident about price stability now that the housing market has become balanced.”

Klump goes on to say that interest rates are widely expected to remain low for some time due to recent downward revisions by the Bank of Canada to its outlook for economic growth and inflation. Consumer sentiment, he says, will likely remain under pressure until economic prospects improve meaningfully.

“In the meantime, many households will focus on paying down their debts before the Bank of Canada resumes hiking interest rates next year. Economic uncertainty is likely to keep potential home buyers in a cautious mood, so the continuation of low and stable interest rates is unlikely to cause housing demand or prices to swell,” Klump concludes.
While Klump speaks to a national picture, you must remember that Oakville tends to be in a bit of bubble that often bucks the national trend. As one of the most desirable communities in Canada in which to live, real estate appreciation tends to be stronger here than in many centres across Canada.

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 Real Estate Team. The result is that we are achieving accomplishments that illustrate the Dan Cooper difference. We are the Number 1 Team in Canada for Royal LePage, which is a testament to our ability to sell homes fast in the Oakville and Burlington areas. In fact, we have been the Number 1 team for seven 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, Finances, Interest Rates, Marketing, Mortgage, Oakville Real Estate, Real Estate, Real Estate Market, Statistics | No Comments »

Experts are predicting cautious optimism in our economy

Wednesday, December 8th, 2010 by Dan Cooper

The Ontario Home Builders’ Association held its annual Economic Forum in Toronto last week where a panel of economists and experts outlined their predictions for the housing and real estate industry in 2011.

The important message was that these economists held cautious optimism for the coming year and felt that interest rates will remain stable, which bodes well for anyone planning to buy their first home or perhaps moving up into something larger and having to carry a mortgage.

According to Douglas Porter, deputy chief economist for BMO Capital Markets, consumer confidence is good; that while household debt is still on the high side, net worth is still in a favourable position. While the manufacturing job market has weakened in Ontario, employment across Canada has improved. Consumer confidence and a good national employment picture mean interest rates should remain stable for the next 18 months, he predicts. We’ve seen a few Bank of Canada rate increases over the summer, but as long as the U.S. Federal Reserve holds steady, there will be no reason to increase rates here, he maintains.

Pascal Gauthier, senior economist with TD Bank Financial Group, has similar opinions explaining that the economic recovery has entered a second phase with much more subdued but more sustainable economic growth. The result is low inflation and low interest rates.

“We think the Canadian dollar can hold and even rise above parity against the US dollar over the next 12 to 24 months … We forecast the Bank of Canada’s will resume raising its overnight rate (currently at one percent) by mid-2011, to reach two percent by year-end 2011, which is still low (zero in real, inflation-adjusted, terms) and stimulative for the economy,” Gauthier says.

He goes on to explain that longer term Government of Canada bond yields (e.g. five-year) will also rise modestly, which bodes well for typical mortgage borrowing rates (e.g. posted fixed five-year) which are anchored to these rates. This will mean that affordability should remain good on a financing basis.

As we move into the holiday shopping period, CIBC World Markets has an interesting take on the consumer situation. In one of its latest reports, the bank states that in the latest quarter shoppers hit the stores, as reflected in a 3.5 percent uptick in consumption activity. The drop in the savings rate to 3.3 percent is still lower than what we are seeing in the U.S., which indicates that Canadians are feeling less guarded about the economic picture. Domestic consumption has been supported in recent months by rising wages and ongoing hiring.

So whether you are shopping for gifts or thinking of making that larger investment in the near future – buying a home – there appears to be borrowing stability in the near future. When it comes to making that major investment – real estate – the key to selling your home quickly and for top dollar is to deal with a broker who has a proven track record and is a consistent top performer.

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. We are the Number 1 team in Canada for Royal LePage, which is a testament to our ability to sell homes fast in the Oakville and Burlington areas. In fact, we have been the Number 1 team for seven of the past 10 years. This is an accomplishment that does not happen by accident, but rather by design. Our dedication and commitment to selling your home, along with superior marketing strategies, have time and time again helped our clients sell 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 Buying, Finances, Interest Rates, Mortgage, Planning, Real Estate, Real Estate Market, Statistics | No Comments »

A group of masterminds at work for you

Tuesday, November 30th, 2010 by Dan Cooper

Profiles of Distinction - Real Estate Mastermind Group

Pictured, standing from left: Tom Mitchell, Mike Clarke, Dan Cooper, Paul Zammit. Seated, from left: Diane Mitchell, Sam McDadi.

I was recently highlighted in a GTA publication called Profiles of Distinction in which a group I belong to was written up. The Real Estate Mastermind Group was the focus of the story, which outlined how, as a group, we are able to serve our customers better.

This collective of heavy hitters within the real estate industry are hand-picked from separate communities within the GTA because of their incredible records. Simply put, they are the best of the best. They are not chosen by the real estate brokerage they represent, but rather for their stellar and steady performance over time. Our parent companies may compete on a national level, but locally we are building strong relationships to better serve you.

The story in Profiles of Distinction describes us this way: “A team of all-stars, the Group brings together top-producing agents from across the GTA to offer clients unsurpassed resources, unlimited range and exceptional service. Drawing on each other’s substantial expertise and varied backgrounds, the team promises a well-rounded approach and richness of ideas.”

Gathering monthly and sharing industry insights, we learn from each other and, ultimately, fashion those lessons into exemplary service for you. Every member has something to share – from marketing strategy and website utilization to the internal management and customer care. Guests speakers are regularly invited to keep us informed about important new trends and emerging strategies that help to maintain our position at the forefront of the real estate world.

We talk about trendsetting ideas, cutting-edge technology, and what we need to do to set ourselves apart from the competition in a very large way. With more than 100 years of combined experience and over $500 million annual volume in homes sold, our team is definitely a band apart. Our mission, as a group, is to create what we call ‘the ultimate real estate agent.’ Collectively our resources stretch across Canada and into other countries, so moving out of town does not have to be a daunting task.

When you hire one of us, you are getting the strength and wisdom of all of us. And so, in the end, it is you who reaps the rewards with your home selling more quickly, more efficiently and for more money because you have a mastermind at work.

As the Profiles story states: “Whether looking to buy or sell locally or to leave the province altogether, the Real Estate Mastermind Group furnishes clients with the best tools and most up-to-date strategies imaginable. Melding collective strength and unparalleled acumen, their clients can depend on fast, efficient and rewarding sales.”
The knowledge I gain from the Mastermind Group, I bring back to my own team to make us the most effective group of professionals in the Oakville and Burlington areas. And we have been rewarded for those efforts by being named the #1 Team in Canada for Royal LePage for 2009. This is our seventh top placing in just the past 10 years, and it is a testament to a lot of hard work and a high degree of success for our clients over the past 12 months.

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 Marketing, Planning, Profiles of Distinction, Real Estate, Real Estate Mastermind Group, Selling | No Comments »

What the October real estate stats are telling us

Thursday, November 4th, 2010 by Dan Cooper

Dan Cooper - Housing Cost

The volume of house sales in the GTA was down last month compared to October 2009, but year to date we are still showing modest growth. In fact, the annual change in sales and average selling prices has been quite uniform across the GTA as the market has balanced out from record sales in the second half of 2009 and first few months of 2010.

Despite the slowdown in activity, average prices are still on the rise – up five percent last month compared to October 2009. “The average selling price in the GTA has continued to grow relative to 2009 because home ownership has remained affordable,” says Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home.”

Oakville followed a similar track with sales volumes, dropping by 34 percent in October compared to the same month last year. But perhaps for the first time Oakville did not outpace the rest of the GTA, recording a dip in the average price by eight percent. Last month the average house price was $550,636 compared to $596,694 in October 2009.

This is a bit of an anomaly for Oakville, which up to now has seen average home prices continue to climb. I believe a significant factor that depressed real estate prices here was the power plant fight. The fact that homes in South-East Oakville were plastered with Fight the Power Plant signs undoubtedly scared away many buyers. I know for a fact that real estate in the South-East area virtually dried up during that campaign. Taking those homes out of the equation would certainly distort the October price figures.

Having won that fight and with the power plant off the table, I fully expect South-East Oakville will bounce back in the market and that we will see average home prices begin to recover quite rapidly. In fact, interested buyers who had been holding off their decisions to see what the outcome would be in that power plant battle will likely create something of a boom in the South-East section.

Year to date, Oakville had a respectable year with sales volume down only five percent and the average sale price up seven percent compared to the first 10 months of last year. In Milton, the first 10 months of the year saw volume down only four percent and the average sales price up by 13 per cent. Comparing October with the same month last year, the sales volume in Milton was down 28 percent but the average price was up seven percent – $379,843 compared to $356,030 last October. The Burlington average price was $389,003 for last month.

“The outlook for mortgage rates and income growth over the next year is favourable. The average home selling price could increase moderately next year and remain affordable for the average GTA household,” according to the Toronto Real Estate Board. I would have to add that with the power plant no longer an issue, we will see Oakville house prices rise quickly and outpace the rest of the GTA.

Choosing an experienced realtor who will market your home effectively is the key to selling your home quickly and for top dollar. The Dan Cooper Team has a proven track record through market knowledge, innovative marketing and superior client service. This is what has made us the Number 1 Team in Canada for Royal LePage for seven 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 Buying, Finances, Milton, Mortgage, Oakville, Oakville Real Estate, Real Estate, Real Estate Market, Selling, Statistics | No Comments »