The Bower Blog

Contrary to Media Reports...we are just ticking along!

Posted by my illustrious leader this morning:

Wednesday morning is office meeting day for our Riverdale office. Realtors from the Riverdale office and from our many other offices gather to discuss the current market, promote new listings and review current listings. It's a weekly tradition in our offices throughout our company which helps us keep up to date. At the close of the meeting, we gather in a caravan of sorts to view our listings throughout the neighbourhood.

At today's meeting we discussed the current market. What's really happening out there? Is the real estate market active, what's selling? None of the stuff which is written in the newspapers, but current, up to date real information shared by professionals.

The Realtors at this meeting overwhelming talked about the multiple offer situations they have been on lately, mostly with houses priced from $400,000. - $600,000.00. Well priced homes in this price category, in great locations were getting plenty of interest from buyers. The Realtors commented that more and more people were out looking at open houses with each passing weekend. These weren't just tire kickers, but genuine buyers prepared to make decisions about homes. Our mortgage rep commented his clients were telling him that the combination of low low mortgage interest rates, combined with well priced homes were strong motivating factors for buyers.

It was agreed that higher priced homes were taking longer to sell, but with strong activity in lower priced properties, it was just a matter of time before the trade up market would be more active. On a side note, this month company unit sales are up strongly when compared to last year at this time, and the average sale price of homes sold in our company has increased as well. Not quite what the press is reporting but a market fact.

We also discussed the hot topic of the day, the energy plan put forward by the government to certify each home as energy efficient. Basically, it has been proposed by the government that each homeowner would have to have their home energy assessed prior to selling. This proposal would cost each homeowner $300.00. It isn't cast in stone yet but it might as well be. Although most of the Realtors are "green" when it comes to their lives, the proposal wasn't popular. Anytime our government gets involved in adding costs to a home purchase, it is met with skepticism. Many suggested the idea was a good one, but the process was up to debate. Time will tell, but in my view it will come to pass and we will get on with our lives.

Green is the new black. 

Ken McLachlan

Broker/Owner RE/MAX Hallmark Realty Ltd.

 

Cheryl Bower

www.CherylBower.com

  

 

Wednesday morning is office meeting day for our Riverdale office. Realtors from the Riverdale office and from our many other offices gather to discuss the current market, promote new listings and review current listings. It's a weekly tradition in our offices throughout our company which helps us keep up to date. At the close of the meeting, we gather in a caravan of sorts to view our listings throughout the neighbourhood.

At today's meeting we discussed the current market. What's really happening out there? Is the real estate market active, what's selling? None of the stuff which is written in the newspapers, but current, up to date real information shared by professionals.

The Realtors at this meeting overwhelming talked about the multiple offer situations they have been on lately, mostly with houses priced from $400,000. - $600,000.00. Well priced homes in this price category, in great locations were getting plenty of interest from buyers. The Realtors commented that more and more people were out looking at open houses with each passing weekend. These weren't just tire kickers, but genuine buyers prepared to make decisions about homes. Our mortgage rep commented his clients were telling him that the combination of low low mortgage interest rates, combined with well priced homes were strong motivating factors for buyers.

It was agreed that higher priced homes were taking longer to sell, but with strong activity in lower priced properties, it was just a matter of time before the trade up market would be more active. On a side note, this month company unit sales are up strongly when compared to last year at this time, and the average sale price of homes sold in our company has increased as well. Not quite what the press is reporting but a market fact.

We also discussed the hot topic of the day, the energy plan put forward by the government to certify each home as energy efficient. Basically, it has been proposed by the government that each homeowner would have to have their home energy assessed prior to selling. This proposal would cost each homeowner $300.00. It isn't cast in stone yet but it might as well be. Although most of the Realtors are "green" when it comes to their lives, the proposal wasn't popular. Anytime our government gets involved in adding costs to a home purchase, it is met with skepticism. Many suggested the idea was a good one, but the process was up to debate. Time will tell, but in my view it will come to pass and we will get on with our lives.

Green is the new black. 

Ken McLachlan

Broker/Owner RE/MAX Hallmark Realty Ltd.

 

Cheryl Bower

www.CherylBower.com

  

Social Butterflies

Besides enjoying and participating in any artful endeavour, I just love to organize.  These two things have been with me from the time I was a little girl.  One year for a project, I took my entire Barbie collection and sewed costumes for all of them, then arranged them in different cultural settings; North American Indians, Spanish Flamingo Dancers, African hunters...I think you get the picture.  I organized them on shelves and when you went into my little den in our home in Etobicoke, it looked like a museum display.

The above "loves' have carried into my adulthood.  Our company is now 500+ and a friend, Carolyn in our office felt the need to have a social committee.  Now, to tell the truth, I'm not the most social gal, preferring nesting at home, however I am an organizer.  The wonderful "Social Committee" met on Monday.  It is an eclectic group that brings a lot of neat ideas to the table.  Of course, it's up to all of us to impliment the ideas.  Some of the ideas are as follows:

1.  (My Favourite So Far):  A Scavenger Hunt at the beautiful ROM Museum:  this is for adults and includes a light lunch buffet.

2.  We have an affiliation at RE/MAX with the Distillery Restaurants:  a beer and wine testing evening, maybe in conjunction with one of the music festivals.

3.  Something adult-like at the Science Centre.

4.  A Niagara Wine Tour in the Fall.

5.  The ever-popular boat cruise, courtesy of Johnny D's phone call.

6.  A 23$ evening of comedy at Absolute Comedy (dinner and show included).

7.  An evening or day of gambling or a show at Casino Rama or the Falls.

8.  A group overnight to New York City for dinner and show.

...and of course, the possibility of a group trip to somewhere exotic for a week.  In the past, we have been to Mexico, Punta Cana and Costa Rica.  One place that was bantied about was Panama-there are great deals there and from all accounts, it is like Costa Rica before all the development.

Exciting, fun things....what a great group!

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

Feeling Pinched? Some helpful Money hints......

There is economic uncertainty "out there" for sure; it's interesting to note how captivated we've all been on watching Obama impliment sweeping reforms.

There are some things we can do to cut corners; I've been addressing some of these things for a month now; already I'm ahead about $2,000 over the next year.

1.  Cut your insurance bill-many insurers offer multi-vehicle discounts which can add up to 10 per cent off both cars.  Switch your home policy to the same insurer and save another five percent.  Ask about age, low mileage, anti-theft, occupation and auto club discounts.  Raise your deductibles to $1,000.00 Potential overall savings? About 35% or about $1,260/year.  I just did this:  my savings? $1,100.00/year.

2.  Open up a high interest savings account:  I opened up the ING Tax-Free Savings Account (new this year; means you don't pay a cent in taxable income up to $5,000).  The interest is 3%; most of the banks are only paying 0.5%.  It can net you a couple of hundred a year, depending on how much you have saved.

3.  Pay your mortgage weekly or bi-weekly: On a $300,000 mortgage at 8% amortized over 25 years, your savings would be more than $90,000 over the life of the mortgage. That is a whopping amount.  Do not pay monthly!

4.  Banish bank fees: shop around and save.  Go to a no-fee account and save more than $150/year.

5.  Lower your interest:  Use a line of credit to reduce your interest costs on high interest items like cars or credit cards.  Interest is calculated on a declining balance.

6.  Pay off your credit cards:  get rid of the high interest cards first or consolidate them with a low interest one.  If you can, pay them off monthly; if not, make sure you pay more than the minimum balance.  It will reduce your repayment time.

7.  Get a better cell phone plan:  I did this before Christmas: I was paying about $130 with tax for my blackberry, which has phone and data email capabilities.  Got the I-phone, was already on the City Fido Plan for phone $45.00 and got a data plan for $25.00.  Savings with tax?  About $40/month.

8.  Finally, if you use long distance (I don't), get a better plan.  Many people are using VOIP-Voice Over Internet Protocol-it can save a bundle and it's easy.  Find the right provider, and they do all the work for you.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

 

There is economic uncertainty "out there" for sure; it's interesting to note how captivated we've all been on watching Obama impliment sweeping reforms.

There are some things we can do to cut corners; I've been addressing some of these things for a month now; already I'm ahead about $2,000 over the next year.

1.  Cut your insurance bill-many insurers offer multi-vehicle discounts which can add up to 10 per cent off both cars.  Switch your home policy to the same insurer and save another five percent.  Ask about age, low mileage, anti-theft, occupation and auto club discounts.  Raise your deductibles to $1,000.00 Potential overall savings? About 35% or about $1,260/year.  I just did this:  my savings? $1,100.00/year.

2.  Open up a high interest savings account:  I opened up the ING Tax-Free Savings Account (new this year; means you don't pay a cent in taxable income up to $5,000).  The interest is 3%; most of the banks are only paying 0.5%.  It can net you a couple of hundred a year, depending on how much you have saved.

3.  Pay your mortgage weekly or bi-weekly: On a $300,000 mortgage at 8% amortized over 25 years, your savings would be more than $90,000 over the life of the mortgage. That is a whopping amount.  Do not pay monthly!

4.  Banish bank fees: shop around and save.  Go to a no-fee account and save more than $150/year.

5.  Lower your interest:  Use a line of credit to reduce your interest costs on high interest items like cars or credit cards.  Interest is calculated on a declining balance.

6.  Pay off your credit cards:  get rid of the high interest cards first or consolidate them with a low interest one.  If you can, pay them off monthly; if not, make sure you pay more than the minimum balance.  It will reduce your repayment time.

7.  Get a better cell phone plan:  I did this before Christmas: I was paying about $130 with tax for my blackberry, which has phone and data email capabilities.  Got the I-phone, was already on the City Fido Plan for phone $45.00 and got a data plan for $25.00.  Savings with tax?  About $40/month.

8.  Finally, if you use long distance (I don't), get a better plan.  Many people are using VOIP-Voice Over Internet Protocol-it can save a bundle and it's easy.  Find the right provider, and they do all the work for you.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

End of the Lag Period in Real Estate

I'm lazy, it's a Sunday and the Oscars are on.....my broker, Ken McLachlan has again written another timely piece.  Just cut and paste!

Anytime time there is a change in a real estate market, especially from an overactive sellers market to a more balanced or buyers market, there is a lag. The lag period is the amount of time it takes to catch up with the new economics of scale playing the market..

It usually takes about three months for things to get back to a more normal swing. Sellers and Realtors begin pricing homes to reflect the new market. They stop thinking less about what their neighbour with a similar house got in 2007 and more about what their home is worth now.

Buyers take this lag period to reflect on the new realities of the real estate market and tend to sit on the sidelines in order to get a "feel" to what the market is doing. They don't want to jump in during this lag period and purchase unless they really need to. They want to have the market give them some direction before they get involved.

The "lag" period happens every time a market shifts.

True to form, the market has experienced this "lag" period and weathered it well. For several months, the market sputtered along, trying to set a pattern for buyers and sellers to follow. This February we have experienced an end to the "lag" market with buyers, sellers and Realtors now more confident of what our real estate market has told them.

We all have adjusted and are back to buying and selling properties. Confidence is in play. The market did not follow the USA model of steep declines here in the GTA and won't. Prices have adjusted, but the blanket free fall some predicted did not occur and will not. We just didn't have the same forces in play to cause it. Our slowdown was more a product of consumer confidence than anything else.

Certain price points are once again getting multiple bids - mostly entry level homes. Higher priced homes are selling, but in longer time periods. An indicator of the market is the sale to listing ratio board wide. Last month it hovered at 13%, today it sits around the 18% or 19% level. So more properties are selling in relation to listings.

I don't think we will be at unit sale levels we had in 2008 or in the peak of 2007, but many many properties will sell in the GTA. It's starting to happen now with more frequency, we just had to get through this "lag" period.

Ken McLachlan

Broker/Owner

RE/MAX Hallmark Realty Ltd.

 

www.CherylBower.com

Anytime time there is a change in a real estate market, especially from an overactive sellers market to a more balanced or buyers market, there is a lag. The lag period is the amount of time it takes to catch up with the new economics of scale playing the market..

It usually takes about three months for things to get back to a more normal swing. Sellers and Realtors begin pricing homes to reflect the new market. They stop thinking less about what their neighbour with a similar house got in 2007 and more about what their home is worth now.

Buyers take this lag period to reflect on the new realities of the real estate market and tend to sit on the sidelines in order to get a "feel" to what the market is doing. They don't want to jump in during this lag period and purchase unless they really need to. They want to have the market give them some direction before they get involved.

The "lag" period happens every time a market shifts.

True to form, the market has experienced this "lag" period and weathered it well. For several months, the market sputtered along, trying to set a pattern for buyers and sellers to follow. This February we have experienced an end to the "lag" market with buyers, sellers and Realtors now more confident of what our real estate market has told them.

We all have adjusted and are back to buying and selling properties. Confidence is in play. The market did not follow the USA model of steep declines here in the GTA and won't. Prices have adjusted, but the blanket free fall some predicted did not occur and will not. We just didn't have the same forces in play to cause it. Our slowdown was more a product of consumer confidence than anything else.

Certain price points are once again getting multiple bids - mostly entry level homes. Higher priced homes are selling, but in longer time periods. An indicator of the market is the sale to listing ratio board wide. Last month it hovered at 13%, today it sits around the 18% or 19% level. So more properties are selling in relation to listings.

I don't think we will be at unit sale levels we had in 2008 or in the peak of 2007, but many many properties will sell in the GTA. It's starting to happen now with more frequency, we just had to get through this "lag" period.

Ken McLachlan

Broker/Owner

RE/MAX Hallmark Realty Ltd.

 

www.CherylBower.com

Spring into Spring: The Art of Decluttering

Recently I went to appraise a home; essentially the folks thought they were ready for market however there was much clutter, so much so in fact, they had to hire one of the PODS from Home Depot.  It was filled to capacity.  It has taken months to go through 30 years of living in one place and the task is monumental.

My esteemed colleague Duncan recently put together a concise, recycling list.  When in doubt, any of these fine organizations can use your used items.  I intend to take this list, add my own favourites and ship it out to my client base.  It is very helpful when the decluttering task is before you!

Arts and Crafts - www.sketch.ca

Automobiles (and who hasn't got an old junker in the back yard) - www.carheaven.ca

Clothing - www.goodwill.on.ca or www.salvationarmy.ca     

Cell phones - www.think-food.com

Computers - www.rebootcanada.ca (you may get a nice sizeable tax receipt also)

Eyeglasses - www.givethegiftofsight.com

Furniture and Small Appliances - www.furniturebank.org (tax receipts available on some items)

Infant and Toddler Supplies - www.jessiescentre.org

Ink Cartridges - www.diabetes.ca  (click on "support us")

Paint and Hazardous Waste - www.toronto.ca (click on "garbage and recycling")

Renovation Supplies - www.torontohabitat.on.ca

Sporting Equipment - www.kidsport.on.ca

HAPPY SPRING!

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

What Makes Your Heart Sing?

I've often mused about this....what makes people jump out of bed with vigor in the morning?  Is it a golf game?  Is it your job?  Is it a hobby?  What drives you to do what you do?

I remember a friend years ago telling me that whatever part of the newspaper you are first drawn to in the morning, is where your passions lie. Some guys I know...it's the sports section or the wheels section.  Some women, and this is not to stereotype but it's true, it's the fashion, life or food section.  We are nesters by nature.

For me, I've always thrown the entire paper in the recycle with the exception of the homes and condo section, entertainment and the big one...drum roll...the art and book review part.  I only get the Saturday paper because of an allergy to newsprint so I put latex gloves on, grab a coffee and sit there for an hour or so reading these sections cover to cover.

My hobbies over the years included singing and arts and crafts shows; about 10 years ago, I started to create birdbaths that were tiled with glass mosaics.  My sister Michele and I would sell these at various craft shows.  I love singing, I adore creating mosaics.  Nothing is more beautiful than taking an old wooden window, glass intact, and creating a work of art with glass.  It's the ultimate form of recycling, turning something old and  unused into something new and beautiful.  When we were in Italy in 2007, Rob and I took a bus tour in Florence. At one point we rounded the corner and there before me was the Duomo (Santa Maria Del Fiore).  It is the most recognized piece of architecture in Florence; the dome is covered in mosaic tiles as are some of the outside walls.  It glistened in the daylight.  I wept when I looked at it.  I really did. 

My family and I go to the exhibition every year.  We park over by the Dufferin Gates on someone's property.  Every year I re-introduce myself to a fellow on one of the side streets who has one of my mosaic windows in his dining room window.  He says it gives his family immense pleasure.  I received an email from a woman in England who had purchased one of my sister's pieces.  She sent a picture along.  A glorious little English cottage with Michele's piece backlit in the window. 

WHAT MAKES MY HEART SING?  THAT DOES!

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

First Impressions important in a slower market

Hot Real Estate Market=even homes that don't give the greatest first impression will sell.

Cooler Market=Listings that show well will be the ones that sell faster and for a better price.

Economic uncertainty has let more buyers into the marketplace; it's an opportune time to buy with record low interest rates.  Staging and preparing a home for sale is more critical now than ever before.

Interior decorators concentrate on making people feel more at home in their interior space.  The idea of staging is to make the home more marketable inside and out.  Staging usually involves getting rid of clutter and depersonalizing a home.  Things like clutter or an imbalance of furnishing or colours that are out of sync with the home can throw a buyer off.

As part of my service, I have been providing my own counselling when it comes to staging as well as a designer/stager on retainer for those cases where even I need help.  For some clients, it can be a tough sell to get them to pack away family heirlooms or trophies.  An objective eye, llike a stager, can help.  The cost to hire a professional home stager varies widely depending on the scope of the project.  It's a service however that is worth the investment.  As a professional Realtor, I need to know when to call in an expert and when that other set of eyes is necessary.

Cheryl Bower

www.CherylBower.com

RE/MAX Hallmark Realty Ltd.

An Excellent Time to Buy a Home

They are all stepping in line. Mark Carney, The Bank of Canada Governor issued his forecast yesterday which called for 3.8% GNP growth for Canada in 2010. Of course the press was all over it, labeling it as a rosy report. But Mr. Carney is not alone in his growth forecast's for 2010. The Bank of Montreal, Scotia, TD and the University of Toronto have all come out with positive growth forecasts for 2010. Collectively they predict 2009 will have negative growth as the world economies adjust to current fiscal problems, but in the summer of this year, the adjustments will begin to take hold and the worst will be behind us.

When challenged by the press, Mr. Carney went on to say that the Bank of Canada is not in the spin business, they are not in the optimism business or the pessimism business. They are in the business of assessing the financial facts, and working with the numbers as they are.

Some weeks ago I wrote that a  window of opportunity for Toronto real estate exists right now. Fundamentally everything is aligned to create the perfect buying opportunities for our clients. Incredibly low mortgage interest rates (which will increase in 2010), current market adjusted prices, and a decent supply of quality homes, condos and investment opportunities on the market.

The lessons learned indicate we should be buying properties. We should be buying properties when most people are not buying properties. When it is all said and done, we will look back at 2009 as the year of opportunity. It is important for our clients and ourselves to be involved and engaged in the 2009 market.

It couldn't be clearer, Buy Toronto Real Estate in 2009.

Ken McLachlan

Broker/Owner RE/MAX Hallmark Realty Ltd.

 

www.CherylBower.com

Facebook, U-Tube, My Space and the Whole darn thing

I have been on Facebook (www.Facebook.com)  a lot lately.  The reason?  I'm into shameless self-promotion and I had a product, a home to sell.  The home was a decent deal, perfect for the 25-30 year old demographic I seem to be attracting as of late.

The interesting thing about Facebook is it is a wonderful social vehicle for being in touch with people from your past.  Here's a sample of contacts from this week:

Greg: an excellent bassist when we were in high school; kept up his music career and has been all over the world touring with bands both as a sound guy and as a musician.  Greg was a couple years younger than I was in high school but hung out with "our boyfriends".  Fun to be in touch.

Carolyn: I loved Carolyn and went to public, middle and high school with her.  I noticed some pics on Facebook (www.Facebook.com) and asked if she was a new gramma.  Turns out she didn't have kids but is really close to friends and her boyfriends families. 

Jackie and Cathy:  my closest gal pals from public, middle and high school.  Jackie's mom has had some health set backs lately she she is visiting here from California.  I met Cathy down at the Harbourfront last week; nothing is more beautiful than looking at a frozen Lake Ontario in the dead of winter....breathtaking.  Cathy and mine hobbies are the same; singing.  She had a gig last week at the Queen's Legs.

Kelly:  was the girl I tortured in public school.  She lived on my street and I remember a couple of occasions pummelling her because of something she had said or done.  Time tempers this; Kelly is recently remarried and going on her honeymoon next week.

These social networks are fun and entertaining.  The only thing you have to watch is that it does not become all consuming and you stop working!