Keep It Real Hamilton

The Best Way To Start De-cluttering

Mon, 30 Dec 2013 13:42:00 -0500

What's the best way to start de-cluttering your home to get it ready to list in the real estate market?

Simply put: just start.

Having said that, my practical advice is to start with the worst part of the home. Many of us have a designated catch-all spot to put things that don't belong anywhere else. And these areas can become very cluttered in no time at all.

It may be a drawer in the kitchen, a closet, a nook, or even an entire room. If it's a drawer, it's probably not a big priority. But if it's any of the latter, this would be a great place to start.

By starting with the worst spot, once you get it done you'll feel such a sense of accomplishment AND everything you do after will be easier in comparison.

How to sell “difficult” properties with issues

Mon, 23 Dec 2013 11:28:00 -0500

Whenever possible, the ideal situation is for the seller to fix any problems that may be outstanding on a property. But there are times when it may not be financially feasible for any number of reasons. It is not the end of the world to list a property for sale with issues, but there are two important things a seller must do if they expect to sell at a proper price and in a reasonable length of time.

First is to make sure you are pricing appropriately for the condition of the property. If a buyer can get a similar property at the same price with absolutely no work to do, you’re going to have a hard time competing in the marketplace. Buyers will expect a lower price if they’re going to have to put in time and money to fix things up, especially if they’re significant items like an old roof or leaky basement.

The second very important step, which actually helps with pricing, is to get written quotes from qualified contractors for any major issues. But besides giving you solid numbers to use for deductions from asking price, a written quote will give comfort to buyers and remove the fear of the unknown – what a seller may “know” to be a $2000 repair can easily be blown up into a $20,000 repair in the buyers’ minds. Written quotes remove the question marks and replace them with known facts.

November 2013 Housing Starts in Hamilton CMA

Tue, 10 Dec 2013 13:56:00 -0500

Housing starts in Hamilton Census Metropolitan Area (CMA) were trending at 2,475 units in November compared to 2,499 units in October, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR)(1) of housing starts.

"The trend in Hamilton CMA total housing starts was practically unchanged in November 2013 compared to the previous month. This November marked the highest number of apartment starts in the City of Hamilton since January 2013. The pace in residential construction during the past two months has been signalling a
stable housing market in Hamilton," said Abdul Kargbo, CMHC's Senior Market Analyst for Hamilton and Brantford CMAs.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of the state of the housing market. In some situations, analysing only SAAR data can be misleading in some markets, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next. The multiples segment includes apartments, rows and semi-detached homes.

The standalone monthly SAAR was 2,728 units in November, up from 2,038 units in October.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

(1) All starts figures in this release, other than actual starts and the trend estimate, are seasonally adjusted annual rates (SAAR) - that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels. By removing seasonal ups and downs, seasonal adjustment allows for a comparison from one season to the next and from one month to the next. Reporting monthly figures at annual rates indicates the annual level of starts that would be obtained if the monthly pace was maintained for 12 months. This facilitates comparison of the current pace of activity to annual forecasts as well as to historical annual levels.

Strong Real Estate Market Continues

Sun, 8 Dec 2013 11:25:00 -0500

The REALTORS^® Association of Hamilton-Burlington (RAHB) reported 1078 properties sold through the RAHB Multiple Listing Service^® (MLS^®) system in November. This represents an 11.1 per cent increase in sales over November of last year.

There were 1298 properties listed in November, an increase of nine per cent over the same month last year. End-of-month listing inventory is 6.1 per cent lower than last year at the same time.

For the first time this year, the average sale price did not show an increase compared to the same month last year. The average sale price in the residential market was virtually the same as last November; a decrease in the average sale price in the commercial market accounted for an overall decrease in average sale price compared to last year.

“We have become so used to seeing regular increases in average sale price that the slight drop in November seems out of place,” said RAHB CEO Ross Godsoe. “And in some ways it is – the commercial market has larger swings in price that can affect the overall picture.”

Seasonally adjusted* sales of residential properties were 17.2 per cent higher than the same month last year, with the average sale price up two per cent for the month. Seasonally adjusted numbers of new listings were 13.4 per cent higher than the same month last year.

Actual overall residential sales were 13.2 per cent higher than the previous year at the same time. Residential freehold sales were 12.6 per cent higher than last year and the condominium market saw an increase of 15.6 per cent in sales. The average price of freehold properties showed an increase of less than one per cent over the same month last year; the average sale price in the condominium market decreased 3.7 per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all properties sold. Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market decreased from 50 to 46 days in the freehold market and increased from 47 to 48 days in the condominium market.

Year to date, listings are up 1.8 per cent compared to the same period last year, while sales are 2.7 per cent higher. The average sale price for the period is 6.5 per cent higher than the same period last year.

“The real estate market in the Hamilton, Burlington and outlying areas continues to be a strong, stable market,” added Godsoe. “Residential sales are about seven per cent above the 10-year average for the month of November.”

*Seasonal adjustment removes normal seasonal variations, enabling analysis of monthly changes and fundamental trends in the data.

Hamilton Housing Market to Remain Stable in 2014

Tue, 19 Nov 2013 14:02:00 -0500

HAMILTON, ONTARIO--(Marketwired - Nov. 19, 2013) - Hamilton's housing market will remain healthy next year with average prices increasing slightly above inflation, according to Abdul Kargbo, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Hamilton and Brantford. CMHC presented its latest forecast for the Hamilton Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Seminar.

At this year's seminar, entitled 'Profiling Hamilton's Echo Boomer', CMHC market analysts explained how the Echo Boomer demographic will influence home-buying trends in Hamilton and provided an in-depth housing market forecast for 2014.

"The strong rebound in first-time buyer demand will continue to help keep Hamilton's resale market active through the first half of 2014. This will allow existing owners to sell their homes and make second round purchases. In recent years, Hamilton has seen an increase in the number of Echo Boomers bypassing the rental market and moving directly to homeownership," said Abdul Kargbo.

Highlights from today's seminar include:

Existing home sales will remain strong through the first half of 2014.
Average house price will grow slightly above inflation in 2014.
Housing starts will rebound in 2014, reflecting lower inventories and steady population increase.
Average rental apartment vacancy rate will trend lower in the next two years.
Job creation will pick up in 2014, as some major manufacturing projects open.

"Housing activity in Ontario will slow in 2013 then stabilize by 2014, thanks in large part to an improving Ontario economy, lower inventories of unsold homes and less out-migration to other provinces. Tight resale market conditions for single detached homes, active repeat buyers and improving income growth will allow demand for lower density homes to hold up better for most of 2014," said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

I am not happy with my agent - how do I cancel my listing?

Wed, 13 Nov 2013 11:12:00 -0500

Occasionally, I have people ask me how they would cancel a contract if they weren't happy with their real estate agent. Unfortunately, I'm not allowed to discuss agency relationships with someone currently under contract.

But speaking generally*, you can't easily cancel a listing unless the brokerage is willing. A listing agreement is a binding contract and, just like any contract, can only be cancelled as per the terms or by mutual consent.

Mutual consent means that your listing brokerage would have to agree to cancel the listing. The agent may or may not be cooperative on this. Personally, I would tend toward cancelling a listing if the clients were unhappy - why force someone to work with you against their will? Fortunately, I've never had anyone want to cancel a listing for anything to do with me.

So if you're not happy and the agent is unable to fix the problem, I guess you would have to bring it up with them and see what they say.

If they do agree to cancel, just make sure that whatever you are signing is an actual listing cancellation and not a listing "suspension" - there is a big difference between the two. In the case of a cancellation, the listing is over and you can re-list with someone else if you want to. But with a listing suspension, the contract is still binding and it is only the marketing that is suspended. You can't legally go list with another company, and an existing MLS® listing - even while suspended - would block a new one being entered.

Another important point to consider about the listing agreement: your contract is with the brokerage, NOT the individual broker or salesperson. If you have a legitimate complaint, you might be justified in contacting the company's Manager or Broker of Record. They may agree to cancel the listing rather than deal with the bad feelings, depending on the situation.

Of course, as the saying goes, "an ounce of prevention is worth a pound of cure". Make sure you due your due diligence BEFORE signing a listing and get a professional, honest and hard-working agent on your side so this won't be a problem.

* Not intended to solicit or counsel clients currently under contract.

October 2013 Housing Starts in Hamilton CMA

Sun, 10 Nov 2013 10:49:00 -0500

TORONTO, ONTARIO--(Marketwired - Nov. 8, 2013) - Housing starts in Hamilton Census Metropolitan Area (CMA) were trending up at 2,487 units in October compared to 2,433 units in September, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of
the monthly seasonally adjusted annual rates (SAAR)(1) of housing starts.

"The trend in Hamilton CMA total housing starts increased in October 2013, following three months consecutive declines. This month's trend reversal reflects a shift in preference towards less expensive ownership housing, particularly in Burlington where the price gap with Toronto has narrowed considerably. The strong performance in the multiple-family segment completely offset the sharp decline in single-detached starts," said Abdul Kargbo, CMHC's Senior Market Analyst for Hamilton and Brantford CMAs.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of the state of the housing market. In some situations, analysing only SAAR data can be misleading in some markets, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next. The multiples segment includes apartments, rows and semi-detached homes.

The standalone monthly SAAR was 1,998 units in October, down from 2,528 units in September.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions

(1) All starts figures in this release, other than actual starts and the trend estimate, are seasonally adjusted annual rates (SAAR) - that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels. By removing seasonal ups and downs, seasonal adjustment allows for a comparison from one season to the next and from one month to the next. Reporting monthly figures atannual rates indicates the annual level of starts that would be obtained if the monthly pace was maintained for 12 months. This facilitates comparison of the current pace of activity to annual forecasts as well as to historical annual levels.

Seller’s Market Continues in Greater Hamilton-Burlington and Outlying Areas

Thu, 7 Nov 2013 07:00:00 -0500

(November 6, 2013 – Hamilton, Ontario) The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1207 properties sold through the RAHB Multiple Listing Service® (MLS®) system in October. This represents a 9.4 per cent increase in the number of sales over October of last year.

The average sale price of $397,403 was an increase of 3.9 per cent over the previous October.

There were 1730 properties listed in October, an increase of five per cent over October of last year. End-of-month listing inventory is 6.3 per cent lower than last year.

“Listings and sales through October were better than last year for the same month and higher than the 10-year average for the month,” said RAHB CEO Ross Godsoe. “We continue to see lower inventory, which again translates into a seller’s market for the area in the month of October.”

Seasonally adjusted* sales of residential properties were 11.7 per cent higher than the same month last year, with the average sale price up 5.6 per cent for the month. Seasonally adjusted numbers of new listings were 6.5 per cent higher than the same month last year.

Actual overall residential sales were 10.2 per cent higher than the previous year at the same time. Residential freehold sales were 11.6 per cent higher than last year and the condominium market saw an increase of five per cent in sales. The average sale price of freehold properties showed an increase of 2.6 per cent over the same month last year; the average sale price in the condominium market increased 13.7 per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all residential properties sold. Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market decreased from 46 to 42 days in the freehold market and increased from 44 days to 47 in the condominium market.

Year to date, listings are up 1.7 per cent compared to the same period last year, while sales are 2.2 per cent higher. The average sale price for the period is 7.3 per cent higher than the same period last year.

Every community in RAHB’s market area has their own localized residential market.

*Seasonal adjustment removes normal seasonal variations, enabling analysis of monthly changes and fundamental trends in the data.

Beware of sale guarantees

Wed, 9 Oct 2013 14:52:00 -0400

"Your house sold, GUARANTEED!"

Sounds good, right? Well, this ad headline may not be promoting an offer as good as you think. Let me start by saying that I am not saying agents who use a sale guarantee program are unethical, but you should walk in to the conversation with your eyes open.

First of all, with out a functioning crystal ball, there is no real "guarantee" that your house will sell in the open market. What the typical sale guarantee program entails is a pre-planned offer for the agent or brokerage to purchase your property. Purchase price and closing date , and maybe some other terms of the purchase, will be pre-set. Okay, still sounds not too bad, right?

But don't forget that successful real estate salespeople are business people, not home-buying charities. Unless they see rental potential, they are not likely to buy your house to keep it. And even if they do, there is a limit to how many of these can be done before financial constrictions prevent further deals.

No, on the contrary, as soon as they have a firm purchase of your property - maybe even sooner - they are probably going to start marketing it for sale. The ideal situation for them is for the property to pass through their hands to another buyer the same day. In order to achieve this, they will need to purchase the property low enough to be able to flip it at market value and not lose money.

If you really need to move, then maybe this will still appeal to you. You won't get what you want, but you will have an option that you can fall back on if necessary.

In the end, if you're inclined to call an agent offering a sale guarantee, just make sure you get and understand the full details on the offer before you commit to listing your property with them.

September 2013 Housing Starts in Hamilton CMA Down: CMHC

Tue, 8 Oct 2013 10:11:00 -0400

Housing starts in Hamilton Census Metropolitan Area (CMA) were trending at 2,451 units in September compared to 2,827 units in August, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR)(1) of housing starts.
"The trend in Hamilton CMA total housing starts decreased in September 2013, representing three consecutive monthly contractions. The decrease in September was entirely due to weaker construction of multiple-family housing in the City of Hamilton. Meanwhile, total housing starts in the City of Burlington and the Town of Grimsby were up due to higher level of townhouses," said Abdul Kargbo, CMHC's Senior Market Analyst for Hamilton and Brantford CMAs.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of the state of the housing market. In some situations, analysing only SAAR data can be misleading in some markets, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next. The multiples segment includes apartments, rows and semi-detached homes.

The standalone monthly SAAR was 2,607 units in September, up from 2,025 units in August.

Preliminary Housing Starts data is also available in English and French at the following link: Preliminary Housing Starts Tables
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

Source: Canada Mortgage and Housing Corporation (CMHC)

September property sales close to record

Mon, 7 Oct 2013 11:10:00 -0400

(October 7, 2013 – Hamilton, Ontario) The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1207 properties sold through the RAHB Multiple Listing Service® (MLS®) system in September. This represents a 32.9 per cent increase in the number of sales over September of last year and is only one sale shy of the September record of 1208 sales set in 2009.

The average sale price of $392,013 was an increase of 6.7 per cent over the previous September. There were 1953 properties listed in September, an increase of 5.8 per cent over September of last year. End-of-month listing inventory is 6.8 per cent lower than last year.

“Sales and listings for the month of September were both well above the 10-year average for the month,” said RAHB CEO Ross Godsoe. “Even though there was an almost-six per cent increase in listings, inventory continues to be lower than last year at this same time.”

Seasonally adjusted* sales of residential properties were 21.4 per cent higher than the same month last year, with the average sale price up eight per cent for the month. Seasonally adjusted numbers of new listings were 1.4 per cent higher than the same month last year.

Actual overall residential sales were 31.1 per cent higher than the previous year at the same time. Residential freehold sales were 34.6 per cent higher than last year and the condominium market saw an increase of 16.7 per cent in sales. The average sale price of freehold properties showed an increase of 10.1 per cent over the same month last year; the average sale price in the condominium market decreased seven per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all residential properties sold. Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market remained at 44 days in the freehold market and decreased from 50 days to 42 in the condominium market.

“This is the first time since the first quarter of the year that we saw a more balanced market,” added Godsoe. “Whether it will continue that way is a good question – we’ll have to see what the next few months bring.”

Year to date, listings are up 1.3 per cent compared to the same period last year, while sales are 1.6 per cent higher. The average sale price for the first three quarters of the year is 7.7 per cent higher than the same period last year.

Every community in RAHB’s market area has their own localized residential market. Please refer to the accompanying chart for residential market activities in select areas of RAHB’s jurisdiction.

*Seasonal adjustment removes normal seasonal variations, enabling analysis of monthly changes and fundamental trends in the data.

KIRH Blog Re-launch

Sat, 28 Sep 2013 09:15:00 -0400

I have decided it is time for a complete re-launch of the Keep It Real Hamilton blog. Why? Well, here is a quick run-down of my reasons:

1. I don't care as much about search rankings anymore

The main reason I changed to a blog on my own website was to try to increase my Google page ranking by having original content hosted on my website. Recently, I have been re-thinking and tweaking my business model. While I am not going strictly referral-only, I am aiming more to work by referral than by generating cold leads from website hits.

Now my blog is strictly about providing useful, timely, and interesting information for people interested in real estate in general and in Hamilton specifically.

2. Blogger is a convenient system

When doing the blog on my site, I was creating a new page for each entry. While not a lot more work, it was just cumbersome enough to be a hurdle to easy posting. Using Blogger removes that hassle of manually creating new page each time.

3. The timing seems right

With several new projects launching soon and the time lapsed since the last time I used Blogger, leaving a big gap between old out-of-date entries and current ones, a re-start felt appropriate.

If you ever have any real estate questions, please feel free to call or email me. I look forward to providing you valuable information and insights into the world of real estate, and hope you enjoy reading my posts from time to time.

jB
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