In recent months we have seen the real estate market pick up significantly, back to the point a year ago when talking about housing activity. Realtors are still waiting for the market to pick up more but will the market return to where it was a 2 or 3 years ago? That is a question many having been asking.
So is it a Seller's market? Most homes that Realtors are dealing with now of days are entering multiple offers. What is that a function of? Consumer confidence is picking up but it hasn't returned to where it was prior to the recession. Well interest rates have bottomed out and the only way they can go is up. That means the first time buyers that are watching the market are out shopping and home owners that want a larger home are out. Right depending on the neighborhood, part of the city and part of the Country, demand is outweighing supply. The supply is low and homes aren't being listed as frequently as they were in the past due to consumer confidence. Demand>Supply=Seller's Market.
There are several questions to ask -
How long will this last?
Will the housing activity pick up even more?
After government pulls out incentives will housing market drop again in 2011?
Friday, September 25, 2009
Power of Sales
Are power of sales really a deal?
Most of the TV we listen to is usually US based or if it is Canadian news they are talking about what is happening in the States. Thus many people feel that getting a power of sale is a deal. Florida homes as low as $20K, Detroit homes even lower....
Here the laws are different. In a power of sale the bank has to do proper due diligence to ensure the price of the home is reflective of market value. Why? Simple - they need to collect money back to pay off debts including other creditors that are secured against the security and remaining money is given to the owners. If the bank sells the property for less then market value, the owners can go after the bank.
The bank typically out sources power of sales to Lawyers to work with Realtors that are responsible to do the proper due diligence - market evaluations, show that home was marketed effectively, report on number of visits, review of offers, and the list goes on.
The second draw back to a power of sale is that the offers typically take longer to review so leaves opportunity for other offers to come in raising the price of the property. There are several people in the market that have been condition to feel that power of sales are deals and strictly look for power of sales and these individuals are typically the ones that raise the price on these properties.
Also when looking at power of sales, one has to note the home is as is - no appliances, possibly no fixtures or window coverings. There are no representations or warranties made by the bank about anything on the property. And most importantly offers that are typically accepted are without conditions. If you are planning to purchase the home and are purchasing as is then it is recommended if you are serious that you do a home inspection prior to submitting an offer. You may be incurring the cost of a home inspection but you have the reassurance about the possible purchase and that you are not buying a bigger problem.
A final note - if considering a power of sale make sure you get a lawyer to review the agreement of purchase and sale prior to submitting the offer as the law firm representing the bank typically makes several adjustments to the agreement. In a recent deal we encountered a situation with GST where it was in addition to the price of the home. Realtors typically only see GST is on new homes and a significantly renovated homes. In this case GST was applicable as the home was registered to a business which had tax implications.
Are Power of Sales still a deal in your mind?
Most of the TV we listen to is usually US based or if it is Canadian news they are talking about what is happening in the States. Thus many people feel that getting a power of sale is a deal. Florida homes as low as $20K, Detroit homes even lower....
Here the laws are different. In a power of sale the bank has to do proper due diligence to ensure the price of the home is reflective of market value. Why? Simple - they need to collect money back to pay off debts including other creditors that are secured against the security and remaining money is given to the owners. If the bank sells the property for less then market value, the owners can go after the bank.
The bank typically out sources power of sales to Lawyers to work with Realtors that are responsible to do the proper due diligence - market evaluations, show that home was marketed effectively, report on number of visits, review of offers, and the list goes on.
The second draw back to a power of sale is that the offers typically take longer to review so leaves opportunity for other offers to come in raising the price of the property. There are several people in the market that have been condition to feel that power of sales are deals and strictly look for power of sales and these individuals are typically the ones that raise the price on these properties.
Also when looking at power of sales, one has to note the home is as is - no appliances, possibly no fixtures or window coverings. There are no representations or warranties made by the bank about anything on the property. And most importantly offers that are typically accepted are without conditions. If you are planning to purchase the home and are purchasing as is then it is recommended if you are serious that you do a home inspection prior to submitting an offer. You may be incurring the cost of a home inspection but you have the reassurance about the possible purchase and that you are not buying a bigger problem.
A final note - if considering a power of sale make sure you get a lawyer to review the agreement of purchase and sale prior to submitting the offer as the law firm representing the bank typically makes several adjustments to the agreement. In a recent deal we encountered a situation with GST where it was in addition to the price of the home. Realtors typically only see GST is on new homes and a significantly renovated homes. In this case GST was applicable as the home was registered to a business which had tax implications.
Are Power of Sales still a deal in your mind?
Sunday, September 20, 2009
Just Listed
Just Listed
47 Germain Cres, Markham, ON (N1707138)
Fully upgraded, gorgeous family home with 4 bedrooms and 4 baths on a large fenced lot. House is approx 3000 sq ft and 4 years old.
This home has everything one needs and wants:
* pot lights throughout main floor
* $$$ spent on upgraded kitchen and top of the line appliances
* wide open entrance way to open curved staircase and hallway
* large master bedroom with sitting area
* master en suite has large soaker tub and separate upgraded glass shower
This home is a must see - just move in and enjoy. Close to all amenities - schools, shopping, 407, hospital, conservation area and golf.
Contact myself for details P: 905 471-2000 or email: sonia_kal@rogers.com
Wednesday, September 2, 2009
Real Estate Market
The latest August report shows that the housing market has returned to pre-recession activity and pricing.
This is great news for current home owners thinking of selling but is concerning for first time home buyers. Interest rates are going to slowly start inching up raising the cost of being a home owner even more for first time home owners. If you are renting or considering buying my question is what is holding you back? I strongly suggest that you speak to a mortgage broker see how much you qualify for and to a Realtor to see what's available in that price range. You will be saving yourself thousands of dollars and will be grateful you go this advice later in life.
Home owners thinking of selling should consider doing the same as it depends where you want to move and the type of home you are looking for. It's all a demand and supply game. If you are looking at a larger detached home you can wait to sell and net out making a nice profit. If you are looking at smaller detached, semi's or town's - you are competing with new home owners which drive up the price per square footage.
Bottom line thinking of selling or buying your first home - speak to someone you trust to get the right advice and knowledge.
This is great news for current home owners thinking of selling but is concerning for first time home buyers. Interest rates are going to slowly start inching up raising the cost of being a home owner even more for first time home owners. If you are renting or considering buying my question is what is holding you back? I strongly suggest that you speak to a mortgage broker see how much you qualify for and to a Realtor to see what's available in that price range. You will be saving yourself thousands of dollars and will be grateful you go this advice later in life.
Home owners thinking of selling should consider doing the same as it depends where you want to move and the type of home you are looking for. It's all a demand and supply game. If you are looking at a larger detached home you can wait to sell and net out making a nice profit. If you are looking at smaller detached, semi's or town's - you are competing with new home owners which drive up the price per square footage.
Bottom line thinking of selling or buying your first home - speak to someone you trust to get the right advice and knowledge.
"But I can't afford to buy...."
Many people would like to start building equity in their own home, but are held back by concerns about cost. In fact, the Canada Mortgage & Housing Corporation estimates that 40 per cent of renters in Canada today can afford to buy their own home.
If affordable housing options are available to nearly half of all renters, what's holding them back?
Sometimes the media reports of housing prices can give a misleading impression about the cost of home-ownership. The media typically reports median or average prices without explaining the distribution of home prices behind those figures.
A median is that price at which half the homes sold for more while half sold for less. That means that there are just as many homes that sold at a price lower than the median than those that sold at prices higher than the median price. The median price doesn't give any indication of the spread of these prices. Many properties are sold for much lower - or higher, of course - than the median price.
An average price is the total dollar volume of homes sold for a particular period, divided by the
number of units sold. Average prices are typically reported for the sales activity in a given area for a given month, quarter or year, and provide a snapshot of past activity. Average prices of properties sold in the past give only a limited indication of what housing inventory for sale is priced at today. An understanding of the housing in a particular community is needed to put average prices into perspective. For example, sales of a new sub-division or townhouse project of larger, upscale homes at higher prices will bring the overall average price up, giving the impression that all housing prices have risen. In reality, prices for the older, smaller housing units in the community may not have changed, or they may have even dropped.
If you are renting or a first time buyer contact a Realtor or myself to find out more information.
My contact info - skalra@sutton.com
If affordable housing options are available to nearly half of all renters, what's holding them back?
Sometimes the media reports of housing prices can give a misleading impression about the cost of home-ownership. The media typically reports median or average prices without explaining the distribution of home prices behind those figures.
A median is that price at which half the homes sold for more while half sold for less. That means that there are just as many homes that sold at a price lower than the median than those that sold at prices higher than the median price. The median price doesn't give any indication of the spread of these prices. Many properties are sold for much lower - or higher, of course - than the median price.
An average price is the total dollar volume of homes sold for a particular period, divided by the
number of units sold. Average prices are typically reported for the sales activity in a given area for a given month, quarter or year, and provide a snapshot of past activity. Average prices of properties sold in the past give only a limited indication of what housing inventory for sale is priced at today. An understanding of the housing in a particular community is needed to put average prices into perspective. For example, sales of a new sub-division or townhouse project of larger, upscale homes at higher prices will bring the overall average price up, giving the impression that all housing prices have risen. In reality, prices for the older, smaller housing units in the community may not have changed, or they may have even dropped.
If you are renting or a first time buyer contact a Realtor or myself to find out more information.
My contact info - skalra@sutton.com
Subscribe to:
Posts (Atom)
