A Softer Summer Real Estate Market

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The market continues to grapple with the sharp decline in affordability caused by tough new mortgage qualification rules, combined with the softening of the housing demand as a result of the summer season slow down, has created more balanced market conditions in many regions.
It is important for sellers to be prepared to negotiate more and expect to be a bit more flexible with their property prices.

Ontario -  A Softer Summer Real Estate Season began. 
Toronto, August 3, 2018 -- Toronto Real Estate Board President Garry Bhaura announced strong growth in the number of home sales and the average selling price reported by Greater Toronto Area REALTORS® in July 2018.
"Home sales result in substantial spin-off benefits to the economy, so the positive results over the last two months are encouraging. However, no one will argue that housing supply remains an issue. The new provincial government and candidates for the upcoming municipal elections need to concentrate on policies focused on enhancing the supply of housing and reducing the upfront tax burden represented by land transfer taxes, province-wide and additionally in the City of Toronto," said Mr. Bhaura.
Residential sales reported through TREB's MLS® System for July 2018 amounted to 6,961 – up 18.6% compared to July 2017. Over the same period, the average selling price was up by 4.8% to $782,129, including a moderate increase for detached home types. New listings in July 2018 were down by 1.8% year-over-year.
Preliminary seasonal adjustment pointed to strong month-over-month increases of 6.6% and 3.1% respectively for sales and average price. Seasonally adjusted sales were at the highest level for 2018 and the seasonally adjusted average price reached the highest level since May 2017.
The MLS® Home Price Index (HPI) Composite Benchmark for July 2018 was down slightly compared to July 2017. However, the annual growth rate looks to be trending toward positive territory in the near future.
"We have certainly experienced an increase in demand for ownership housing so far this summer. It appears that some people who initially moved to the sidelines due to the psychological impact of the Fair Housing Plan and changes to mortgage lending guidelines have re-entered the market. Home buyers in the GTA recognize that ownership housing is a quality long-term investment," said Jason Mercer, TREB's Director of Market Analysis.

Ottawa, August 3, 2018 -- Members of the Ottawa Real Estate Board sold 1,614 residential properties in July through the Board’s Multiple Listing Service® System, compared with 1,524 in July 2017, an increase of 5.9%. The five-year average for July sales is 1,501. July’s sales included 1,238 in the residential property class, an increase of 3.6% from July 2017 and 376 in the condominium property class, an increase of 14.3 percent from a year ago.
“Ottawa’s condo market continues to positively impact overall residential sales trends with year-to-date condo unit sales up 16.5 percent from this time last year,” states Ralph Shaw, Ottawa Real Estate Board President. “As well, our overall inventory levels in both the residential and condo market are improving which will help ease pressure on prices. Units available are currently down 16 percent down from July 2017 rather than the 24 percent we were down at the beginning of the year.”
The average sale price of a residential-class property sold in July in the Ottawa area was $441,206, an increase of five% over July 2017. The average sale price for a condominium-class property was $280,526, an increase of 5.3% from July 2017.*
“We are noticing a surge in unit sales in the rural areas, particularly the west end,” notes Shaw. “This is not only driven by availability but likely includes other attractive aspects in these well-established communities such as reasonable commute times, convenient shopping options, and great schools and recreational facilities which aren’t overtaxed.”
Between $175,000 to $274,999 was July’s most active price point in the condominium market, accounting for almost 49% of the units sold. While the $300,000 to $449,999 range remained the most robust price point in the residential market, accounting for 45% of home sales. In addition, the $500,000 to $750,000 price range represented almost one in five residential home sales.
“Ottawa’s healthy real estate market is a reflection of its strong economy which is consistently firing on all four cylinders due to a secure employment base,” reflects Shaw. “It remains a competitive market, and multiple offers (when priced right) are still the norm in some neighbourhoods. Buyers and sellers alike require a REALTOR® to pave the way through the complexities of the market.”
In addition to residential and condominium sales, OREB Members assisted clients with renting 1611 properties since the beginning of the year.

Alberta - All residential average unit prices decrease, unit sales increase month over month
Edmonton, August 2, 2018 --In the Edmonton Census Metropolitan Area (CMA), the average all residential selling price decreased 2.07% to $370,046 compared to June 2018 and decreased 3.63% compared to July 2017. Single-family home average prices decreased 1.44% to $436,825 month over month and decreased 2.25% year over year. Duplex/rowhouse average prices decreased by 0.71% month over month and decreased 0.48% year over year. Condominium average prices increased by 3.35% compared to June 2018 and decreased 6.22% compared to July 2017.
Compared to June 2018, single-family home sales decreased by 9.01% and compared to July 2017, decreased by 3.29%. Duplex/rowhouses increased 4.17% compared to June 2017 and decreased 3.31% relative to July 2017. Condominium sales increased 2.65% month over month and 3.40% year over year.
“The overall real estate market is softening as the summer selling season begins to slow,” says REALTORS® Association of Edmonton Chair Darcy Torhjelm. “Average prices are decreasing and that may continue in the rest of the year due to the high inventory levels. It is important for sellers to be prepared to negotiate more and expect to be a bit more flexible with their property prices.”
Inventory increased slightly in July, up 0.52% compared to July 2018 and up 12.62% compared to June 2017. New listings decreased 13.02% month over month and increased 4.04% year over year. In total, there was 1,603 MLS® System listed properties sold in July 2018, a decrease of 4.47% month over month and a decrease of 0.99% year over year.
Average days on market increased for most categories, indicating more of a buyers’ market for the Edmonton CMA. The average for single-family homes increased to 52 days for July 2018, two days longer than June 2018 and four days longer than July 2017. For duplex/rowhouses, the average days on market was 61, increasing from 57 in June 2018 and 55 in July 2017. Condominiums required one less day in July 2018, decreasing to 66 days on market from 67 in June 2018 and 60 days in July 2017.

British Columbia - Summer Home Sales Slow to a Simmer
Vancouver, BC – August 13, 2018. The British Columbia Real Estate Association (BCREA) reports that a total of 7,055 residential unit sales were recorded by the Multiple Listing Service® (MLS®) across the province in July, a 23.9% decrease from the same month last year.
The average MLS® residential price in BC was $695,990, down 0.4% from July 2017. Total sales dollar volume was $4.9 billion, a 24.2% decline from July 2017.
“The BC housing market continues to grapple with the sharp decline in affordability caused by tough new mortgage qualification rules,” said Cameron Muir, BCREA Chief Economist. “However, less frenetic housing demand has created more balanced market conditions in many regions, leading to fewer multiple offers and more choice for consumers.”
Year-to-date, BC residential sales dollar volume was down 18.9% to $37 billion, compared with the same period in 2017. Residential unit sales decreased 20.6% to 50,926 units, while the average MLS® residential price was up 2.1% to $725,639.

Inexpensive Home Make-Over for the Summer

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Many homeowners want to change their home’s decor but think they can’t afford it. Some even feel they should use the money to pay off their mortgage. However, revamping your home decor doesn't have to cost you a bundle. All it takes is creative thinking—colours, placement, and the mood you want to set. You'll be surprised how small changes can add flavour to your lifestyle without spending a lot of money.

Simplicity is bliss
Less means more in terms of style and overall look. Clutter-free spaces make your home appear larger in size. So the first step of any makeover should be to tidy up. Store away any items that you will not need for the season like heavy blankets and clothing.

Cover your furniture
Slipcovers give any room a fresh new makeover. Not only do they conceal old upholstery, but changing the entire colour palette of the room becomes a snap. In addition, slipcovers are inexpensive and easy to clean.

Dark colour furniture creates a warm, cozy feeling in the winter but might be a bit too much for summer. Simply toss on a white slipcover to create a cool atmosphere for those humid days.

The trick with slipcovers is to use them to match furniture pieces—both in colour and style. Change the hues in your room to transform the mood. Turn an old couch into a beautiful new sofa. The possibilities are endless.

Add flair with pillows
It is always a wise investment in furniture to go with neutral shades because the classic look will never go out of style. However, that doesn’t mean you have to sacrifice fashion for function. Pillows are an excellent way to bring current design trends into your home without breaking your budget. Select pillows in different sizes, patterns, and textures to add some flair to your rooms.

Get an area rug
Area rugs are a great example of how you can creatively redecorate your home without making permanent changes. Area rugs do two jobs; they make your room cozier and add a touch of sophistication.

Don’t invest in expensive and huge carpets. Select something that won’t challenge your space, but rather complement it.

Create ambiance
Beyond creating a very romantic mood in your home, candles are an easy way to make your environment more pleasing to the eye. Don’t be a slave to symmetry. Buy candles in all shapes and sizes from pillars to tea lights. Choose your colour palette based on the season: autumnal burgundies and browns for the colder months, peaches and pastels for summer time. 

Bring the outdoors inside 
What better way to bring the outdoors in than growing a windowsill garden right in your own home. Select your own seeds, from petunias to lush marigolds. You're guaranteed cheerful blooms all year round! 

Not only do plants add grace to your look, but research shows they also improve your health. Plants work hard to clean your air of toxins and reduce stress.

Add flavour to walls
People have a love/hate relationship with wallpaper. Truthfully, there is nothing easier to install than wallpaper to create that instant wow-factor. Nowadays wallpaper coverings have come a long way in both patterns and colours, so you really can find a style that suits your tastes. You don’t need to wallpaper your entire living space; instead, select one of two parallel walls to cover that will complement your existing decor. 

Make it picture perfect
You can make a bold statement in your home’s décor by simply picking up a few basic and inexpensive picture frames. Then, buy a whole selection of patterned wrapping paper (yes, the kind you use to wrap presents!) to frame. It’s an easy and interesting way to add a bit of interest to an otherwise standard-looking wall.

Create visual effects
Place large glass jars or carafes of various sizes around the house. Fill with delicious home-baked cookies, pasta, legumes, and other colourful food, or display vibrant fresh blooms. You can even fill the jars based on the season. For example, cinnamon hearts in February and candy canes at Christmas. 

Lighten up your space 
Lighting is the most important aspect of a home makeover. The right mix of lights can bring a room to life. Pay attention to your kitchen since it's the gathering spot in most homes. 

If you've given your home a complete makeover and it still doesn't feel right, the problem may be your selection of lighting. 

By incorporating some of the above ideas, you can inexpensively transform your home into a comfy, cozy haven that you will be proud to share with your family and enjoy with friends.

Contact me today to at www.kimlouie.net to chat about your real estate needs!

First-Time Homebuyers Need to be Flexible

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First time home buyers share a common dilemma. On one hand, most of them are on a tight budget and have limited resources. On the other hand, they have big dreams of the ideal house they would like to have.

It’s okay to have a wish list of features that you want in a home. In fact, it’s a very good idea. It will make your shopping much easier, and you will increase the chances of finding a property you like.

However, in most cases, the ideal dream home is far beyond the reach of many buyers, at least price wise. Even if their real estate agent is able to find a property with most of the features the buyer wants to have, the property may not be in the right neighbourhood or price range.

Getting into a starter home
You need to be flexible when choosing your first home. And if you’re not flexible with your wish list, you may miss out on some otherwise ideal opportunities. The perfect home, at the right price, may not exist on the market, but a property that meets most of your criteria probably does.

Unless you are status conscious, your first home doesn’t necessarily have to be your dream home. You could settle for a starter home, which you can afford with a small down payment and easy mortgage installments.

Keep in mind that a less-than-perfect property can potentially be improved. If the house doesn’t have a spacious kitchen, you may be able to expand the kitchen area – perhaps by adding a pantry in an adjacent room. There are plenty of lower-priced houses out there in need of repair, with some "Do-It-Yourself" projects you can add more value to the house. Be careful not to buy a place where the cost of repairs will eat up any profits you might make when you sell.

In just a few years you will build enough equity in your starter home to make it easier for you to sell and move into to your dream home.

Buying your first home is an exciting process. After all, your home could be the largest asset you’ll ever own. Being able to finance most of its cost will take a load off your back in the future.

Contact me today at www.kimlouie.net to chat about your real estate needs!

Mortgage Insurance vs. Life Insurance

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When buying a home or renewing a mortgage, many people think they are obligated to sign up for their financial institution's mortgage life insurance. Don't rush into buying your bank's insurance policy until you've looked at all the possibilities. You could end up saving money and getting added life insurance coverage at the same time by purchasing a term life insurance policy instead.

What is mortgage life insurance? Mortgage life insurance, also known as mortgage insurance or creditor insurance, is offered by most banks and lending institutions. It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage passes away.

How does term life insurance cover your mortgage? When you purchase a term life insurance policy, you take into account all the money your family will need in case you are not around to help out. This includes your mortgage payments.

Mortgage life insurance vs. term life insurance Life insurance gives you more options and greater control over your mortgage protection. Compare these advantages to what happens when your mortgage lender insures your mortgage:

Mortgage insurance	Life insurance
Your insurance covers only your mortgage balance.	You can choose from different types of insurance (i.e. term or permanent) with a death benefit to cover more than just your mortgage.
Even though your mortgage debt reduces over time, your premiums remain level.	Your coverage amount does not decrease over time unless you choose to change it.
If you die, only the outstanding balance on your mortgage is paid off.	If you die, the death benefit is paid to your beneficiary who can use it as they see fit, not just to pay off your mortgage.
The mortgage lender is automatically the beneficiary.	You name the beneficiary.
If you take your mortgage to another company, you may lose your existing mortgage insurance and may be required to re-qualify for new mortgage insurance.	If you take your mortgage to another company you keep your existing insurance, so you don't have to re-qualify.
You lose all your coverage when your mortgage is repaid, assumed or in default.	As long as premiums are paid your coverage remains in place, even if your mortgage is repaid, assumed or in default.
You have no flexibility to change your coverage as your needs change.	If you decide you need coverage only until your mortgage is repaid but later realize you require coverage for other needs, you can convert your insurance to a permanent plan.

Extra coverage with term life insurance A term life insurance policy gives you added coverage and flexibility over a mortgage life insurance policy;

• One major disadvantage of insurance purchased through the bank is the ownership of the policy. The bank owns “your” policy and has complete control over it. The bank also happens to be the beneficiary of your life insurance policy. That means you have no say in who gets the death benefit or what the death benefit is used for. When you die the bank is going to use the proceeds to pay off the mortgage.
  However, with term life insurance your family receives any payout from your term life policy directly. It may be more advantageous for your surviving spouse or children to use the proceeds to invest and simply continue to pay the monthly mortgage payments. This would be most appropriate if the current mortgage interest rate is much lower than current investment rates of return available. They could simply invest the proceeds and use the investment income to pay part or all of the mortgage payments on a monthly basis.
• Mortgage insurance policies only cover you for the amount of your mortgage you owe to the bank. As you pay down your mortgage, your coverage amount decreases with it. This is called a reducing balance. With a term life insurance policy, you have a constant level of coverage for the whole term and are getting better value for your monthly payments.
• With mortgage life insurance, you have to reapply any time you switch lending institutions. But with term life insurance, unless you want to increase your coverage or terminate your plan, your policy is automatically renewed up to age 80 with no medical questions asked.

Shop, compare and save Depending on your age and health, the premiums on mortgage life insurance can be much higher than what you would pay for a term life insurance policy. Take the time to shop around for life insurance. Compare the cost of a term life insurance policy to a mortgage insurance policy. Chances are you'll find a term life insurance policy will have lower yearly premiums and offer more coverage and flexibility than a mortgage insurance policy.

While getting mortgage insurance through your lender is convenient, a term life insurance policy might be the way to go if you're looking to save money.

Continued Slowing of Home Sales and Marginal Home Price Increases in July

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July home sales through the Multiple Listing System (MLS® System) of the Kitchener-Waterloo Association of REALTORS® (KWAR) were down 16.8 per cent compared to last month and down 10.6 per cent compared to July of last year. A total of 504 residential properties sold in July compared to 564 in the same month last year.

On a year-to-date basis, there have been 3,601 home sales during the first half of the year, a decrease of 18.0 per cent.

"The story for July is largely more of the same that we’ve been seeing for most of 2018," says Tony Schmidt, KWAR President. "The number of sales has decreased from what we were seeing the past couple of years to more typical levels, but the value of homes not only remains steady but continues to gradually increase."

Residential sales in July included 282 detached (down 23.4 per cent compared to July 2017), and 130 condominium units (up 14.0 per cent) which includes any property regardless of style (i.e. semis, townhomes, apartment, detached etc.). Sales also included 53 semi-detached homes (up 35.9 per cent) and 35 freehold townhouses (down 5.4 per cent).

The average sale price of all residential properties sold in July increased 5.5 per cent to $480,145 compared to the same month a year ago. Detached homes sold for an average price of $584,337 - an increase of 12.4 per cent compared to July of last year. During this same period, the average sale price for an apartment style condominium was $292,714, an increase of 4.3 per cent. Townhomes and semis sold for an average of $359,278 (up 2.2 per cent) and $387,664 (up 9.8 per cent) respectively.

The median price of all residential properties sold last month was up 7.1 per cent compared to July of last year at $443,700, and the median price of a detached home during the same period increased 12.8 per cent to $530,000.

REALTORS® listed 739 residential properties in K-W and area last month, down 8.9 per cent compared to July of 2017. The number of active residential listings on the KWAR’s MLS® System to the end of July totalled 1,062, which is 3.3 per cent higher than July of last year but still down from the historical (2007-2016) ten-year average of 1,885 listings for July.

"The competition from buyers is still out there, but not nearly as prevalent as the past two years. This is showing up in the $400,000-$600,000 price point where we continue to see the shortest average days on market," reports Schmidt. "I think this reflects both the move-up market as well as the typical home that buyers who migrated down the 401 were purchasing."

"There is no doubt the mortgage stress-test is impacting buyers and the market. Our concern has always questioned the wisdom of introducing policy to respond to temporary market activity, so now the only question is whether this impact is beneficial or not."

"Either way, Buyers are wise to avail themselves of a REALTOR® to help them navigate local market conditions and ensure the most successful outcome."

The average days it took to sell a home in June was 23 days, the same as in June 2017.

Contact me today for a more detailed analysis of the market in your specific area!

How to Choose the Right Kitchen or Bathroom Fan

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Bathroom and kitchen fans are an integral part of your home's overall ventilation system. In addition to removing odours and improving your indoor air quality, fans can also help lower the level of humidity in your house, protecting your home from moisture damage and helping to prevent the growth of mould. But with so many models to choose from, how do you know where to begin?

1- Choose the quietest, most energy-efficient fan you can afford in the size range required. Most fan labels have Home Ventilation Institute ratings so you can compare both noise and energy efficiency. As a good rule of thumb, a good-quality bathroom fan should draw 25 litres of air per second (50 cubic feet per minute), while a kitchen range hood should generally move between 50 to 140 litres of air per second (100 to 300 cubic feet per minute). Large bathrooms, or those with bigger fixtures such as spas, need larger fans to handle the higher levels of humidity.

2 - In the bathroom, look for a fan with replaceable parts and permanent lubrication if possible, as well as one that is suitable for continuous use. If you choose a fan with an integrated heating lamp or lights, look for the most energy-efficient model available. Any fan installed in an insulated ceiling or under an attic must also be guaranteed not to leak air and must be rated for use under insulation.
Make sure that exhaust fans, lights, and heaters in bath or shower enclosures are rated and approved for wet conditions, preferably including some kind of ground fault protection. 

 

3 - To keep noise levels to a minimum, look for fans labelled 'low noise' or 'quiet,' and select the quietest fan in the size you need. Remember: if it isn’t rated, there’s a good chance that it will be noisy.

4- Lastly, the most useful kitchen range hoods have a low noise rating, an energy-efficient fan, fluorescent lights, sound insulation, anti-vibration mounts and duct connections. For heavy-duty use, select non-corrosive materials such as aluminum or stainless steel.

Some fans come with dual sensor technology that reacts to both motion and humidity and automatically turns the fan on when someone enters the bathroom or a rise in relative humidity is detected. Those fans are very energy efficient because they only operate when necessary and are ideal for kids’ bathrooms, as well as, assisted living or handicap accessible restrooms because of their hands-free operation.