Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.
The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new HarmoSnized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.
"There have never been so many motivating factors in play at once," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "We're in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."
Source : Re/Max Ontario Atlantic
Wednesday February 24, 2010
Friday, February 26, 2010
Friday, February 19, 2010
Flaherty Moves to Cool Mortgage Boom
New Rules and Their Effects! Read More About What the Government is Planning On Doing! Great Article From the Globe and Mail, published by JEREMY TOROBIN, TARA PERKINS AND STEVE LADURANTAYE on Wednesday, February 17, 2010.
Read More Here http://www.theglobeandmail.com/report-on-business/flaherty-moves-to-cool-mortgage-boom/article1470693/?cmpid=tgc
Read More Here http://www.theglobeandmail.com/report-on-business/flaherty-moves-to-cool-mortgage-boom/article1470693/?cmpid=tgc
GOVERNMENT OF CANADA TAKES ACTION TO STRENGTHEN HOUSING FINANCING
Ottawa, February 16, 2010 2010-011
The Honorable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians. "Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."
The Government will therefore adjust the rules for government-backed insured mortgages as follows:
Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.
To discuss how this affects your next real estate purchase, please contact us any time.
The Leslie Benczik Team
905.477.7766
The Honorable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians. "Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."
The Government will therefore adjust the rules for government-backed insured mortgages as follows:
Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.
To discuss how this affects your next real estate purchase, please contact us any time.
The Leslie Benczik Team
905.477.7766
Tuesday, February 16, 2010
Buying a home : What you can afford
If you're thinking of purchasing your first home, you probably have a lot of great ideas about what you'd like, but it may be time for a reality check. Most first-time buyers want their dream home right away. The best way to deal with this reality is to match your financial capabilities with the home that meets as many of your needs as possible.
Many first-time buyers purchase what is commonly known as a "starter home." There's nothing wrong with this approach. In fact, it's good common sense to avoid buying a home that will stretch your budget to its breaking point. Remember, the starter home is just that - a way to get started in long-term real estate investment.
To see how much you can afford, you should take a close look at your financial situation. The vast majority of home buyers lack the funds required to buy a home without assistance from a bank or other financial institution (commonly called a "lender"). So, for most of us, buying our first home means combining our savings with money borrowed through a special type of borrowing arrangement called a "mortgage." Borrowing to purchase is not only acceptable, it's desirable. Even people buying millions of dollars' worth of real estate borrow to make the purchase.
There are two types of costs in buying a home: the amount of money you'll need for the initial purchase; this consists mainly of the down payment and other costs such as legal fees and taxes; and the ongoing costs of paying back your mortgage, along with monthly operating costs for utilities, maintenance, insurance and annual property taxes.
Costs of buying a home =
* Down payment & * Mortgage
* Legal fees
* Utilities
* Inspection fees
* Maintenance
* Taxes
* Insurance
* Property taxes
When lenders assess your ability to buy, they look at your ability to pay both types of costs in determining how much money they will lend you. Before you ever visit a lender, you can predetermine this amount, using the same formulas they do. Lenders use several factors in judging your ability to handle a mortgage, including your income, employment record and credit worthiness. However, one way you can estimate the price range you can afford is to look at the amount of money you have available for a down payment.
The most common mortgage is a "conventional mortgage." In this type of arrangement, lenders will loan up to 75 per cent of the "appraised" value (estimated market value) of the property or the purchase price - whichever is lower. The remaining 25 per cent is the amount you will contribute as down payment. If you want to buy a home that has an appraised value of $200,000, a lender may loan you 75 per cent or $150,000 on a conventional mortgage when you contribute a down payment of $50,000. If you plan to borrow funds through a conventional mortgage, multiply the money you have available for a down payment by four. For example, if you have access to $40,000, you may be able to purchase a home with an appraised value of $160,000 ($40,000 x 4 = $160,000). This assumes, of course, that you have sufficient income to make the payments on a $120,000 mortgage (75 per cent of $160,000). Most lenders will not permit a borrower to take on a debt load the borrower can't carry. That's why reputable lenders "qualify" potential borrowers before issuing mortgages.
Most lenders say that your monthly housing expenses (mortgage payment and taxes), plus condominium maintenance fee, if applicable, would not exceed 30 per cent of your monthly gross family income. This is called your Gross Debt Service (GDS) ratio. Some lenders will go as high as 35 per cent, depending upon a number of variables. Lenders also use a second calculation in qualifying you for a mortgage. It's called the Total Debt Service (TDS) ratio. Generally speaking, no more than 40 per cent of your gross family income may be used when calculating the amount you can afford to pay for mortgage payments and taxes plus other fixed monthly expenses.
These other fixed costs are your ongoing commitments and can include auto, student or personal loans, as well as revolving charge accounts. Again, the 40 per cent calculation may vary slightly among lenders.
By knowing exactly what you can afford, you can make your home purchase with confidence.
Source: Ontario Real Estate Association
Many first-time buyers purchase what is commonly known as a "starter home." There's nothing wrong with this approach. In fact, it's good common sense to avoid buying a home that will stretch your budget to its breaking point. Remember, the starter home is just that - a way to get started in long-term real estate investment.
To see how much you can afford, you should take a close look at your financial situation. The vast majority of home buyers lack the funds required to buy a home without assistance from a bank or other financial institution (commonly called a "lender"). So, for most of us, buying our first home means combining our savings with money borrowed through a special type of borrowing arrangement called a "mortgage." Borrowing to purchase is not only acceptable, it's desirable. Even people buying millions of dollars' worth of real estate borrow to make the purchase.
There are two types of costs in buying a home: the amount of money you'll need for the initial purchase; this consists mainly of the down payment and other costs such as legal fees and taxes; and the ongoing costs of paying back your mortgage, along with monthly operating costs for utilities, maintenance, insurance and annual property taxes.
Costs of buying a home =
* Down payment & * Mortgage
* Legal fees
* Utilities
* Inspection fees
* Maintenance
* Taxes
* Insurance
* Property taxes
When lenders assess your ability to buy, they look at your ability to pay both types of costs in determining how much money they will lend you. Before you ever visit a lender, you can predetermine this amount, using the same formulas they do. Lenders use several factors in judging your ability to handle a mortgage, including your income, employment record and credit worthiness. However, one way you can estimate the price range you can afford is to look at the amount of money you have available for a down payment.
The most common mortgage is a "conventional mortgage." In this type of arrangement, lenders will loan up to 75 per cent of the "appraised" value (estimated market value) of the property or the purchase price - whichever is lower. The remaining 25 per cent is the amount you will contribute as down payment. If you want to buy a home that has an appraised value of $200,000, a lender may loan you 75 per cent or $150,000 on a conventional mortgage when you contribute a down payment of $50,000. If you plan to borrow funds through a conventional mortgage, multiply the money you have available for a down payment by four. For example, if you have access to $40,000, you may be able to purchase a home with an appraised value of $160,000 ($40,000 x 4 = $160,000). This assumes, of course, that you have sufficient income to make the payments on a $120,000 mortgage (75 per cent of $160,000). Most lenders will not permit a borrower to take on a debt load the borrower can't carry. That's why reputable lenders "qualify" potential borrowers before issuing mortgages.
Most lenders say that your monthly housing expenses (mortgage payment and taxes), plus condominium maintenance fee, if applicable, would not exceed 30 per cent of your monthly gross family income. This is called your Gross Debt Service (GDS) ratio. Some lenders will go as high as 35 per cent, depending upon a number of variables. Lenders also use a second calculation in qualifying you for a mortgage. It's called the Total Debt Service (TDS) ratio. Generally speaking, no more than 40 per cent of your gross family income may be used when calculating the amount you can afford to pay for mortgage payments and taxes plus other fixed monthly expenses.
These other fixed costs are your ongoing commitments and can include auto, student or personal loans, as well as revolving charge accounts. Again, the 40 per cent calculation may vary slightly among lenders.
By knowing exactly what you can afford, you can make your home purchase with confidence.
Source: Ontario Real Estate Association
Sunday, February 14, 2010
Marketing Your Home
If you're thinking of selling your home in the near future, you may think that all that's required is a "for sale" sign strategically placed on your front lawn -- but any real estate professional will tell you there's much more to it than that.
While a sign on your lawn is of paramount importance to the sale of your home, a well-thought-out marketing plan is also essential. Your realtor's marketing plan, of course, is another vital component in the process, and one of the first things he/she will discuss with you is a marketing strategy designed to give your home maximum exposure.
Keep in mind that effective marketing of your home requires a lot of communication between you and your realtor and there are several things you can do to make sure your home gets the best possible exposure.
Be Candid
Disclose everything you can about your property and information you have about the neighbourhood in general. This information will help us a great deal and we can choose how and when this information can be related to prospective purchasers. For example, there may be something about your home or the area you live in that you may take for granted, but that characteristic could be a major selling point for your home. It's also wise to be candid about any potential drawbacks as well, so we can be realistic in arriving at a suitable list price. Where possible, we are likely to have some suggestions as to how these problems can be improved upon. As well, we may notice some serious flaws in you home or even some basic elements that are missing. They may not bother you, but could work to your detriment when it comes to selling your home. As a result, we are likely to make helpful, reasonable recommendations that will enable you both market your home successfully. It's important to keep an open mind.
Operating Costs
It's also a good idea to have information on hand that will give your realtor an idea of the costs of running your home -- annual heating bills, along with documentation of any recent major repairs or upgrades -- such as a new roof or new wiring or plumbing. These can be very effective marketing tools.
Clean and Clutter-Free
Before any showing or open house, it's imperative to make sure your home is clean and uncluttered -- both inside and out. Get rid of junk (don't forget the garage) and any unpleasant odours from smoke, cooking or pets. A neat exterior is inviting and a clean and neat interior just makes good, plain marketing sense. Consider having your home painted. It's a relatively inexpensive way to show it in its best light. Meeting with a home stager is another great idea for showing your home in its best light.
Stay Informed
Your realtor should keep you informed by following up after each showing and providing you with a weekly update on how the marketing of your home is progressing. By the same token, if you have any questions or ideas, don't hesitate to share these with us.
You'll find that a team effort, combined with a realistic approach will help you market your home much more effectively.
Source: Ontario Real Estate Association
While a sign on your lawn is of paramount importance to the sale of your home, a well-thought-out marketing plan is also essential. Your realtor's marketing plan, of course, is another vital component in the process, and one of the first things he/she will discuss with you is a marketing strategy designed to give your home maximum exposure.
Keep in mind that effective marketing of your home requires a lot of communication between you and your realtor and there are several things you can do to make sure your home gets the best possible exposure.
Be Candid
Disclose everything you can about your property and information you have about the neighbourhood in general. This information will help us a great deal and we can choose how and when this information can be related to prospective purchasers. For example, there may be something about your home or the area you live in that you may take for granted, but that characteristic could be a major selling point for your home. It's also wise to be candid about any potential drawbacks as well, so we can be realistic in arriving at a suitable list price. Where possible, we are likely to have some suggestions as to how these problems can be improved upon. As well, we may notice some serious flaws in you home or even some basic elements that are missing. They may not bother you, but could work to your detriment when it comes to selling your home. As a result, we are likely to make helpful, reasonable recommendations that will enable you both market your home successfully. It's important to keep an open mind.
Operating Costs
It's also a good idea to have information on hand that will give your realtor an idea of the costs of running your home -- annual heating bills, along with documentation of any recent major repairs or upgrades -- such as a new roof or new wiring or plumbing. These can be very effective marketing tools.
Clean and Clutter-Free
Before any showing or open house, it's imperative to make sure your home is clean and uncluttered -- both inside and out. Get rid of junk (don't forget the garage) and any unpleasant odours from smoke, cooking or pets. A neat exterior is inviting and a clean and neat interior just makes good, plain marketing sense. Consider having your home painted. It's a relatively inexpensive way to show it in its best light. Meeting with a home stager is another great idea for showing your home in its best light.
Stay Informed
Your realtor should keep you informed by following up after each showing and providing you with a weekly update on how the marketing of your home is progressing. By the same token, if you have any questions or ideas, don't hesitate to share these with us.
You'll find that a team effort, combined with a realistic approach will help you market your home much more effectively.
Source: Ontario Real Estate Association
Tuesday, February 9, 2010
Is it time to "move up?"
Chances are when you bought your first home in Markham or Stouffville, you were thinking of it as a "starter home" and dreamed of owning a larger and better home one day. With today's mortgage rates in the lowest range they've been for almost 30 years, you might be pleasantly surprised that you can afford that "move up" house now. Using the equity you've built up in your current home, your carrying charges may not be much larger than what you've been used to paying. If you're curious to find out, us to help you calculate carrying costs on a "move up" home.
There are many reasons why you may wish to have a larger home including a growing family, the desire to have more bedrooms so the kids can have their own space. Or maybe you want a larger yard, a garage or a home with a private driveway. Whatever your reasons, moving up to a new home can be very satisfying. It's also a smart move because the equity in your home will continue to grow and the value of a bigger and better home will be ultimately greater over time. As well, the pride of ownership in a bigger house will probably be even greater than you had when you bought your first home.
When you decide that moving up is the way to go, be sure to enlist our services. Your options can be confusing at times, but we can help you make the right choices. We will help you determine the market value of your current home and therefore the price range you should be considering in a move up home. You'll need to determine where you want to move. Do you want to stay in the same neighbourhood or move on? There are almost as many individual choices on location as there are homes.
Moving up to meet your changing lifestyle and needs can be an exhilarating experience. Your home is probably the best investment you'll ever make so why not take advantage of current market conditions and enhance your investment today.
Source : Ontario Real Estate Association
There are many reasons why you may wish to have a larger home including a growing family, the desire to have more bedrooms so the kids can have their own space. Or maybe you want a larger yard, a garage or a home with a private driveway. Whatever your reasons, moving up to a new home can be very satisfying. It's also a smart move because the equity in your home will continue to grow and the value of a bigger and better home will be ultimately greater over time. As well, the pride of ownership in a bigger house will probably be even greater than you had when you bought your first home.
When you decide that moving up is the way to go, be sure to enlist our services. Your options can be confusing at times, but we can help you make the right choices. We will help you determine the market value of your current home and therefore the price range you should be considering in a move up home. You'll need to determine where you want to move. Do you want to stay in the same neighbourhood or move on? There are almost as many individual choices on location as there are homes.
Moving up to meet your changing lifestyle and needs can be an exhilarating experience. Your home is probably the best investment you'll ever make so why not take advantage of current market conditions and enhance your investment today.
Source : Ontario Real Estate Association
Monday, February 8, 2010
Do I Buy when I Haven't Sold My House?
Buying a home today is different from February of 2009. Last year buyers had more homes to choose from in Markham, Unionville, Cornell, and Stouffville. This year, with interest rates still very low – there are not as many homes for sale.
People hear of homes selling in multiple offer situations. So how do you buy if your dream home comes on the market and you haven’t sold your own home?
Call the Leslie Benczik Team to give you a free home evaluation and ask us
About our guarantee home selling program. We have been actively selling homes this year in Markham, Unionville, Cornell and Stouffville.
Talk to us – we are here to help selling and buying home as stress free as possible.
Written by Rosemary Mauro, Sales Representative
Leslie Benczik Team, Re/Max All-Stars Realty Inc., Brokerage
www.GetBenczik.com
People hear of homes selling in multiple offer situations. So how do you buy if your dream home comes on the market and you haven’t sold your own home?
Call the Leslie Benczik Team to give you a free home evaluation and ask us
About our guarantee home selling program. We have been actively selling homes this year in Markham, Unionville, Cornell and Stouffville.
Talk to us – we are here to help selling and buying home as stress free as possible.
Written by Rosemary Mauro, Sales Representative
Leslie Benczik Team, Re/Max All-Stars Realty Inc., Brokerage
www.GetBenczik.com
Saturday, February 6, 2010
Sales Start Off Strong in 2010
February 3, 2010 -- Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough. Last month’s sales were slightly higher than the January average in the five years preceding 2009.“The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour. “Increasingly confident consumers moved to take advantage of affordable home ownership.”The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.“Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The rate of sales and price growth will be lower in the second half of 2010.”
Median PriceIn January, the median price was $350,000, from the $303,000 recorded during January of 2009.
Source: Toronto Real Estate Board
Median PriceIn January, the median price was $350,000, from the $303,000 recorded during January of 2009.
Source: Toronto Real Estate Board
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