Real Estate Curve

Last month(December 2009) there has been roughly -47% Active listings compared to 2008.

The amount of real estate sales in (December 2009) was at a high of +115%, highest in the last 4 years.

What does this mean, is that there aren’t that many active listings and people are still buying real estate in Toronto, Mississauga and the greater Toronto area more then ever.

What will happen in the future for Ontario real estate when the HST will start in July?
I personally think that sellers will want to sell their properties before hand to avoid additional costs. What I mean is that on a average home worth $400,000 a seller will have to pay $1600 more in taxes on commission when the HST will be in effect. Therefore a lot of people will want to save that money and sell/close before hand to avoid the additional cost.

Since when did we go into bidding wars in Mississauga, once in a while before but now it seems each good listing has a bidding war. Buyers are becoming angry and feel the pressure to buy. First time buyers are shocked and feel extreme pressure from their agents as well.
Banks are appraising the properties and wonder where are the sale prices coming from. Well its easy, in a bidding war the final price comes from the person who is willing to pay the most for the house.
People now is Mississauga are even buying real estate without inspections, what’s next?
Houses selling in 1-4 days, others over listed are staying on the market or getting low ball offers.
The majority of the activity is coming from the 300-500K homes.

Stay tuned for the next update…

Through out the last few weeks, the market in all parts of Mississauga specifically in Meadowvale, Clarkson, Port Credit Real Estate has been moving like hot cakes. If the property is rennovated or not but priced right, it will sell quick. People are not being that picky as they use to be due to the lack of extreme LOW inventory.
Have you been looking for a house, did you find one, were there mulitple offers on it or even worst did it sell before you could take a look at it? These are all the symptoms which buyers are experiencing currently in Mississauga Real Estate and through out the GTA.

As of November 2, the inventory of Mississauga and the GTA is extremly low, ATTENTION SELLERS IT IS YOUR MARKET!!!

In the greater Toronto area, the demand for housing is high. The inventory is low, well at least with good houses, let me explain. If there are 10 houses for sale in a specific area 3 house are good houses, meaning they are priced at market value and are valued what the vendors are asking for. The other 7 are either over priced or just in too of a bad shape to sell it for the asking price and the vendors don’t realize it. It is a shock to first time buyers but good homes sell for close to asking price with in 1-5 days on the market, so do youself a favour and get yourself an agent and don’t miss out, before the good ones are gone. If a house goes on the market go out and see it the same day, if you like it put an reasonable offer the same day and don’t insult the vendor with a low ball offer.

Cheers

The statistics show that an average family will change their home every 3-5 years. Now in most cases this is true, but there are exceptions. For example, you get married buy your first condo, live there 2 years have 1 or 2 kids, the condo gets smaller you have to get a bigger living space(most likely a house) After the next 3-5 years the kids get bigger, you need more room, one for each child or even a older parent to help them out, so what now, you sell and buy bigger. Once you get older (kids move out)you don’t need that big house and you down size. Now this case doesn’t apply to all people there is tons families that live in a house for over 10, 20 or even 30 years, but the statistics show 3-5 years an average a family changes their home.
People change for many reasons they slowly move up to that Dream Home, over many moves/years. Buying your dream homes won’t happen on your first home purchase, well unless you got the cash or win the lottery. Just though this could be useful to know.

What is everyone’s though on open houses?
Do the people that come to the open houses are they the nosy neighbors?
Are the people going to open houses serious about buying?
If you ask me, if I want to buy a house I go to an agent, what are the chances going to an open house and it beign the one you will buy? Come on realistically slim.
From what I noticed either people are sent by their lazy agents to open houses, because they don’t feel like showing homes which have open houses schedules, or its people that are in the “maybe” stage of thinking to buy a house. Now don’t get me wrong there is cases that people walked into a home fell in love with it, put an offer and purchased that home, but it doesn’t happen that often.
What are your though?

As an agent in the GTA I have noticed that even with the real estate curve down we are getting more and more activity each and every day. Well not exactly as 2007 but we are getting more first time buyers interest in the market and the prices. From what I see the houses which are in a demand area are not drastically affected by this market slow down. If a house is listed in a hot area it will sell and it will sell fast. Homes which are run down and over priced are feeling the affect of the buyers market, specifically first time buyers. What people don’t realize which have homes and want to upgrade to a bigger one is that if they lose 10% on their current home they will get that 10% off a more expensive home which they are planning on buying, with this 10% off the more expensive home they will infact save even more. People just need to sit down and do some basic math. 10% off a $300,000 home is $30,000 and 10% off a $500,000 home is $50,000, with this your clearly save $20,000 for buying in a recession year, think about it.
Right now there is about 10:1 Ratio of homes to buyers, when the curve will go up with will be 1:10 ration of homes to buyers even with the prices down, you will then still compete for that low priced home and most likely over pay for it by 10-20% because the market will become hot again. Look what started happening in between 2000-2007, crazy market, up up up with the prices.

The confidence is coming back to the Canadian real estate market. The real estate curve in first time buyers as conducted by the Royal Bank of Canada is increasing, with majority saying it is a good time to buy. With over 2000 people surved in the second half of January 2009, 65% believe now is a buyers market, and 27% say they intend to buy a home this year or next.

Adults under 35 who do not own a property and rent will step forward and bring the market on a upward curve. Also in the same group 48% said they plan to buy, making this percentake 36% higher than last year.

Average prices are forcasted to fall 5.2% in 2009

As a real estate agent in the gta I find that more and more first time buyers are calling. Not too many people calling me to seel their house if they have too much equity in their home, why you ask? A lot of people that have that equity sitting in their home believe we are going to come back to 2007 and have the prices boom straigh up. I personally think they are smart for waiting and not selling at the moment but they don’t realize one thing. If you want to buy a bigger home, then sell your home now. If you lose 10% on your current home then you will get 10% off on a more expensive home, people don’t realize this that they can actually save some money now. Unlike people who want to down size waiting is the key.
Now a lot of people ask me what will happen in 6 to 12 months, no one has the answer, to me the rest of the year will go as started so far, the real estate has taken a curve downward. It good for first time buyers but for people who want to down size it is not time to sell. Use common sense when planning you can take this recession to your advantage. Use the real estate curve to you advantage.

US February 2009 video includes topics on: 6.5% rise on home sales includeing California, Arizona, Nevada and Florida.

Newest report on the Canadian Real estate curve affecting buyers and sellers, RRSP new restrictions for first time buyers, consumer confidence and more.

Another great short video talking about lower interest rates, who should buy and why to sell in the US.

Great short video on the Canadian Real Estate Curve Impact, talks about some provinces decreasing and some even increasing in sale and value. This report is for the month of January 2009, great short informational video.

Many first time buyers are calling and asking this question, I heard the market is down, is it a good time to buy? I myself hear many different things, like on tv they mentioned this recession may last 2-4 years, at the office they are saying this year will be slow but the next will be better. From what I see if that the last 2 weeks of Feburary were getting more people looking through the market which is a good thing. The more people in the market to look for a house the more chances of the economy getting back up slowly. The prices in the GTA area got into a down real estate curve of between 8-11%. It is a good time for first time buyers, you never know what will happen in six months, people are saying prices will stay the same, and other are waiting for the prices to drop, what is one to do? I say life is a gamble, do you research, ask the people you trust, look at the stats and economy and then make your choice.

Every time you buy new or used real estate, it is a good idea for a qualified inspection to take a look at all possibilities of something being wrong with the property. From wiring of electrical components to water drains and plumbing, lead pipes to copper and pvc pipes. It is important that you get the qualified experts advice on any problem the potential property may face.
When buying a new property, do a home inspection as well, some may ask why, its a brand new home. The answer to this is that most homes now are build on sub divisions, making them have less quality and time put into them. Most workers on sub divisions are paid by the job or by the piece, the more they do the more they get paid. A lot of new homes face problems which the new home owner wouldn’t pick up on his/her own. Simple problems like reverse wiring to outlets, electrical panel issues, plumbing draining going upwards instead of down wards, you get the idea.
For used homes, people are generally too excited to find problems themselves when buying the property there is too much excitement and emotion. Don’t make this mistake, always book your professional inspection.
Try not to be cheap and get your uncle or neighbor to help you out, an inspection may cost you anywhere from $200-$500 but the inspection can advise you of future problems or even get your price reduction on that home for any problems the home inspector finds.
Be wise and do your inspection on every real estate you buy.