The Bower Blog

Selling Homes and Condos in Today's Market

The market today is busy with few listings and lots of buyers.  It makes sense that prices appear to be on the rise simply because of the principal of supply and demand.  The ingredients for demand are low interest rates, wonderful incentives for first time buyers, along with the ability to buy with 5% down payment plus being able to use RRSP funds.  The issue we have been facing is the lack of supply (AGAIN!).  As realtors, we have to set ourselves apart to get those much needed listings.  How do we do this?  Well, the first thing I always think of is create a great marketing plan to WOW the sellers.  What this means is align yourself with home stagers who can property discern how to best present a home.  Create great marketing material to get your product (and your name) out "there".  The other thing we need to do is be in touch with our great clients.  I watched a seminar yesterday from a geru from my past, Joe Stumpf.  He offered wonderful insight to touch base with your clients.  You know, sometime we get busy but there is no excuse not to just pick up the phone sometime and say "Hey, how you doin?"

My experience has shown that presenting a home in the best possible light can garner 5-25% more on a sale price than homes that have not been staged, cleaned or minimally, painted.  Here are some helpful hints.

1.  Take care of the outside:  remove garage and groom your trees bushes and grass. FIRST IMPRESSIONS!

2.  Declutter:  clear away all unecessary stuff and furnishings.

3.  Depersonalize: remove family photos and collections.

4.  Improve your lighting: make sure the windows are clean and add extra lighting around the home.  Increase wattage, if necessary.

5.  SPIC and SPAN the place.  Make it shine!

6.  Clear out your closets.

7.  Add new towels and really spic and span the washroom(s).

8.  Paint the place in a neutral colour.

9.  Invest in a staging company, if the funds allow or ask me, your realtor for some helpful hints!

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

H1N1 FLU

Rightly or wrongly, as of last week I felt the H1N1 flu attention was hype and hysteria created by the media....until a 13 year old boy died in Etobicoke on Monday.  My fear catapulted; not for myself, but for my son who is a young adult, works on the frontline with the public and has asthma.  Just as I was texting him and encouraging him to get a flu shot this morning, our (very conscientious) Canadian government sent around a brochure "Know How to Prepare for the H1N1 Flu Virus".  Here is some of the information enclosed in that brochure.

Recognize the Symptoms:

Almost always: sudden onset of cough and fever

Common: fatigue. muscle aches. sore throat. headache. decreased appetite. runny nose

Sometimes: nausea. vomiting. diarrhea

SEVERITY INDICATORS

Shortness of breath, rapid or difficult breathing

Chest Pain

Bluish or grey skin colour

Bloody or coloured mucus/spit

Sudden dizziness or confusion

Severe or persistent vomiting

High fever lasting more than 3 days

Low blood pressure

Protect yourself by:

washing your hands frequently with soap and warm water or use alcohol based hand sanitizer.

avoid touching your eyes, nose or mouth.

cough and sneeze into your arm, not your hand.

get a H1N1 flue shot.

keep common surface areas clean and disinfeced.

if you get sick, stay home!

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Bank Rates

Good afternoon,

As expected, the Bank of Canada kept their overnight rate unchanged at 0.25% (meaning the prime lending rate remains unchanged at 2.25%).    With the economy starting to show some signs of recovery and with the real estate market as strong as it is, the Bank of Canada would have likely raised the rate this morning if it were not for our strong Canadian dollar.   Raising rates would send our dollar higher, therefore doing damage to our economy.  As long as the Canadian dollar remains high, we can expect the prime rate to stay fairly low and there is some speculation now that the prime rate may be left unchanged beyond the BOC's commitment to hold it to mid 2010.   

With most major lenders pumping their 5 year fixed mortgage rates up by as much as 35 basis points last week, there are still many rate deals available for your clients.   It still amazes me just how many homebuyers go to their bank and accept whatever rate they are quoted without actually taking a look at other options that could save them thousands of dollars.  For example, most banks are offering a 'discounted' 5 year fixed rate of around 4.35%.  With a mortgage amount of $300,000 and an amortization of 35 years, the monthly payment would be $1,384.88 at 4.35%   Let's now compare this with the lowest available market rate for a five year fixed, which is 3.68%.  For the exact same mortgage amount, your monthly payments would only be $1,266.45 saving the client $118.43 per month or a whopping $7,105.80 over the 5 year term!    Now, this 3.68% rate is for closings within 30 days only, and comes with limited prepayment privileges of 5% per year, so it may not be for everyone, however over 90% of homeowners never take advantage of their prepayment options anyway.  With a 5% prepayment privilege, they can still pay up to $15,000 toward their mortgage without penalty using the above example, so does it really make sense for them to PAY just to have the OPTION to pay up to $60,000 more per year towards their mortgage?   While some people may have that kind of disposable income to throw around, I would say that most don't.   

Today's lowest mortgage rates:

1 year 3.68

2 year 3.20

3 year  3.50

4 year 3.85

5 year 3.68  (quick close, no frills)

5 year  3.84  (full prepayment options, 90 day close)

5 year ARM 2.15  (prime -0.10)

Per:  Paul Meredith, City Can Financial

 

 

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Toronto helps lead surge in existing home sales

 

Existing home sales across Canada climbed to the highest level of any third quarter on record, according to figures released today by the Canadian Real Estate Association.

Year over year increases in Toronto at 28 per cent and Vancouver at 124 per cent were the main reasons for the upswing.

The group reported 135,182 sales from July to September, up 18 per cent from the same time in 2008, and representing the largest such increase since 2002.

"Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market," said CREA president Dale Ripplinger.

Vancouver, Toronto and Calgary were the three most active markets.

The national average price also rose by 11 per cent to $327,736 from the same quarter last year.

An increase in sales activity and fewer new listings are drawing down inventories.

However, on a seasonally adjusted basis the supply of homes edged up slightly in the third quarter after four consecutive quarterly declines.

"While the small rise in seasonally adjusted new listings suggests that the number of homes coming onto the market may soon begin to edge higher, the number of new listings remains well down from year ago levels," said the board.

The strong third quarter was capped by strong resale activity in September, up by 17 per cent, and a new record for the month.

This is the fourth consecutive increase from year-ago levels.

"Headline average price increases over the rest of the year are expected to prompt sellers to return to the market after having retreated to the sidelines late last year and earlier this year," said CREA chief economist Gregory Klump.

"An increase in new listings will help keep a lid on price increases."

thestar.com

Toronto housing market stays hot

October 8, 2009

Tony Wong
BUSINESS REPORTER

The Toronto housing market is on the way to a recovery, although an undersupply of homes is leading to bidding wars, says a report by Royal LePage released today.

The activity in the existing homes market is spilling over into the new homes sector, where housing starts surged in September by a seasonally adjusted and annualized 25 per cent from a month earlier, according to figures also released today by the Canada Mortgage and Housing Corporation.

"The sharp recovery in housing demand is beginning to work its way into the residential construction sector in Toronto," said Shaun Hildebrand, CMHC senior market analyst.

Both single-detached homes and multiple-family homes, which includes condominiums, showed an improvement. A home is considered "started" once the concrete foundations are poured. Starts for single detached homes, considered a key segment rose to their highest level of the year.

"Residential construction will be firing on all cylinders as we head into 2010," said the CMHC.

The Toronto uptick broke the national trend, which saw starts down by 4.6 per cent across the country.

In a separate report by Royal Lepage, Toronto home prices for detached homes and bungalows are up slightly from a year ago, but condominium prices are down.

The price of an average existing bungalow increased barely, to 0.8 per cent or $436,857 compared to the same quarter last year.

A standard two-storey home is up in value to $561,725. However, average prices for a condominium dipped by 3 per cent to $300,526 according to the real estate company.

"The economic recession interrupted the flow of the real estate cycle, but it is essentially back on track," said Phil Soper, president and CEO of Royal LePage. "There is an illusion of a boom in the market, but in fact what we are experiencing is the end of a normal, short term correction."

thestar.com

 

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty ltd.

Customer Service does NOT stop at the sale

I had a purchaser visit showing on a property last night.  Although it was not my buyer's first purchase, I was reminded how encompassing a process it is to buy and sell a home by regular people and why our services as realtors are so valuable.  Let me explain.

The home purchase was a woman in her 80's who was selling the family home.  June and Bob (name changed to protect their privacy) had lived in the home for almost 50 years.  The process of selling, moving and signing the documents was overwhelming to them.  During the course of the viewing by my buyer, June asked me multiple questions about what was going to happen on the day of closing, how they were going to get their money, etc.  I carefully explained it to her, even though she was not my seller.  Frankly, I liked her a lot and I was happy to do it, but it got me thinking how we should have a simple step by step guide to help people thru the process.  Even if we verbally explained it, there is so much to understand that a written manual as such would be helpful.  My buyer (bless his boots) complimented my patience in explaining everything but as he expressed to the seller, the process was overwhelming to him and best left in the hands of professionals, i.e. realtors, lawyers, etc. 

Soooo, today I've started a user-friendly, how to guide on maneuvering through the wonderful world of real estate sales in Toronto.  Stay tuned; I'll give you some exerts.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty ltd.

Quality of Life? Canada's up there, eh!

Norway is tops, Niger worst; China and Iran climbing

Oct 05, 2009 10:53 AM

THE ASSOCIATED PRESS

BANGKOK – Norway enjoys the world's highest quality of life, while Niger suffers the lowest, a United Nations agency said Monday, as it released a ranking that highlights the wide disparities in well-being between rich and poor countries.

Canada was listed fourth, well ahead of the United States which was in 13th place.

The annual Human Development Index, unveiled in Bangkok by the UN Development Program, takes into account life expectancy, literacy, school enrolment and per capita gross domestic product in 182 countries.

"A child born in Niger can expect to live to just over 50 years, which is 30 years less than a child born in Norway. Furthermore, the differences in per capita income are huge for every dollar earned per person in Niger, US$85 are earned in Norway," UNDP said.

Norway was followed by Australia and Iceland on the list, which drew on statistics dating from 2007, before Iceland was hit hard in global economic crisis. Afghanistan and Sierra Leone rounded out the bottom of the ranking.

Trends in the index since 1980 showed an average improvement of 15 per cent in countries' scores. The greatest long-term improvements have been shown by China, Iran and Nepal, but progress has been concentrated in education and health rather than income, said the agency.

Afghanistan is new to the list this year – reliable statistics were not previously available – but otherwise leaders and laggards are largely the same.

However, five countries rose three or more places – China, Colombia, France, Peru and Venezuela – while seven countries dropped more than two places – Belize, Ecuador, Jamaica, Lebanon, Luxembourg, Malta, and Tonga.

The index was released as part of the UNDP's annual Human Development Report, which this year highlighted migration.

"Most migrants, internal and international, reap gains in the form of higher incomes, better access to education and health and improved prospects for their children," said the report. "These gains often directly benefit family members who stay behind as well as countries of origin indirectly."

It also suggested that as the populations age in developed countries, they could benefit from increased migration to boost their work forces.

But it cautioned that encouraging migration should not substitute for "efforts by developing countries to achieve growth and improve human well-being."

Associated Press

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.  

 

Housing Rebounds 2009/2010

Housing Activity to Rebound in Second Half of 2009 and in 2010

OTTAWA, September 3, 2009 — Housing starts are expected to rebound in the second half of 2009 and will reach 141,900 for the year. Starts will increase to 150,300 for 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) third quarter Housing Market Outlook, Canada Edition* report. The overall forecast totals for housing starts remain unchanged from the second quarter release.

 

"Economic uncertainty and lower levels of employment tempered new housing construction in the first half of this year", said Bob Dugan, Chief Economist for CMHC. "In the second half of 2009 and in 2010, we expect housing markets across Canada to strengthen."

Improving activity on the resale market and lower inventory levels in both the new and existing home markets are expected to prompt builders to increase residential construction.

Existing home sales, as measured by the Multiple Listing Service (MLS®)1, have rebounded strongly since January and will reach 420,700 units in 2009 and remain close to that level at 419,400 units in 2010.

CMHC Report

 

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Think PINK this weekend

Every October the CIBC sponsors a lovely event called the "RUN FOR THE CURE".  When I had breast cancer, it was a ritual for my friends and I to participate in this event.  The sea of participants, coupled with the pink t-shirts, hats and balloons, moved me to tears particular when the event started.  You could see pink for miles and you knew which people were in recovery or undergoing treatment.  We were the bandana brigade.  This year the Run for the Cure is taking place on Sunday October 4.  Even if you are not partcipating, it's worthwhile to stop down to Nathan Phillip Square.

Here are some breast cancer facts:

Breast cancer is the most common cancer among Canadian women (excluding non-melanoma skin cancer). In 2009: 

• An estimated 22,700 women will be diagnosed with breast cancer and 5,400 will die of it. 
• An estimated 180 men will be diagnosed with breast cancer and 50 will die of it. 
• On average, 437 Canadian women will be diagnosed with breast cancer every week. 
• On average, 104 Canadian women will die of breast cancer every week.

Probability of developing or dying from breast cancer
One in 9 women is expected to develop breast cancer during her lifetime and one in 28 will die of it.

Trends in breast cancer
Breast cancer death rates have declined in every age group since at least the mid 1990s. In women aged 20-39, breast cancer incidence and death rates have declined since 1969.

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Our own family has no history of breast cancer, yet two of us have been treated for this disease.  My sister just finished her last round of radiation therapy this week.  She is my hero.  I would like to see a cure for breast cancer in my lifetime and walks like this help in the research of groundbreaking discoveries. 

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

                                                                                      

Loyalty-my favourite trait

I've had the same old friends for years and years.  One group is called "the Bits and Bites".  We're a little bit of this, a little bit of that.  They are a strong group of dynamite women, in various stages of life, careers and family.  We are circular in our loyalty to one another.  When there are problems, there is always someone with an ear.  When there is joy, also rejoicing and happiness with them.  Business flows in a circular motion too.  I love that two of my women friends, Financial Planners, always think of me when someone is interested in buying, selling or simply in need of some real estate counselling.  I also try to send as many people their way as possible as well.  They are loyal, true and blue, honest and can always be relied on.  One of these friends used to lament about being "dependable and bendable".  I told her (more than once) it was and is the most admirable trait and was not something to be critical of herself for.  I love that she is dependable and can see more than one side in a situation. I also love that she has never offered unsolicited advice-always asks permission if I want her opinion.  I have come to do that too with friends.  Most often, people really just want to be listened to. 

Yesterday I helped out a dear friend in a real estate transaction.  As realtors we all have good years and not so good years.  I was so happy for her yesterday, simply because she was successful in a transaction.  I loved the way she spoke to her clients and am excited the day worked out well for her.  How often she has rejoiced in my success the past few years.

When we were on holidays this summer, a few pieces of business went through the cracks for Mr. Davidson.  I followed up with a few agents to apologize.  One agent sent a note back. "I will never use another company...ever".  I told her it was my favourite thing about her...her loyalty and true blueness.

Loyalty is undervalued; there are many sayings where this falls in to play.

"whatever goes around comes around"

"you reap what you sow"

Loyalty, integrity....my favourites.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.