Archive for September 26, 2010

Laurin Jeffrey | September 28, 2010
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Most expensive and affordable housing markets

Coldwell Banker issues home listing report of most expensive and affordable housing markets for ‘aspirational’ homes

Coldwell Banker Real Estate LLC released its Home Listing Report (HLR), a snapshot survey of four-bedroom, two-bathroom home listings in Canada and the U.S. Reporting on a home size many homebuyers would aspire to own – the HLR found a $1.7 million difference between North America’s most expensive and most affordable housing markets.

Newport Beach, Calif., led the list of most expensive real estate markets, with an average listing price for four-bedroom/two-bathroom homes of $1,826,348 US. Vancouver, BC was the only Canadian city in the North American top ten, posting an average price of $1,324,000 CDN ($1,289,179 U.S). North America’s most affordable housing market was Detroit, Mich., with an average four- bedroom/two- bath home listing price of $68,007 US. The HLR is the latest development from Coldwell Banker to provide comprehensive information on real estate data from across Canada and the U.S. It provides the average home listing price for four-bedroom, two-bathroom properties on coldwellbanker.com listed between February and August 2010 from nearly 300 U.S. and over 20 Canadian markets. Markets included in this report had to have at least six properties fitting the above description listed within a recent six-month timeframe and a Coldwell Banker presence.(1)

“Coldwell Banker has released local real estate market reports annually for many years to provide consumers with insight into local market conditions,” said John Geha, president of Coldwell Banker Canada Operations ULC. “Our study shows that due to a wide diversity of home types in major Canadian markets, a four-bedroom two bath home is still within reach for many Canadians. In densely populated urban centers where condos, townhouses, and semi-detached homes provide a variety of alternatives for those looking for a four bedroom home, there are surprisingly affordable options available. Those who have financial security and a lifestyle reason to move have a unique opportunity to take advantage of historically low mortgage interest rates. And in many markets, home prices are now beginning to stabilize, and as inventory improves, buyers will have more to choose from.”

“Looking at the pricing of four-bedroom homes across North America, there are some incredible opportunities in U.S. property right now,” Geha continues. “Canadians who may be thinking of buying property south of the border will find there are a great many options available to them in price ranges not seen here in Canada.”

Diverse housing options in Ontario: In Ontario, four-bedroom, two- bathroom homes showed surprisingly affordable pricing in some of the province’s more densely populated urban centers such as Toronto ($495,398 CDN ) and Mississauga ($393,691 CDN), where condo units provide an appealing option for buyers wanting a four-bedroom home in the city, without the price of a large lot.

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Contact the Jeffrey Team for more information  -  416-388-1960

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Category: Buying Real Estate, Detached Homes, General Real Estate, Mortgages | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Laurin Jeffrey | September 27, 2010
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Home Sweet Home – for now

One-in-five Canadians own more than 5 homes in their life time

There is no place like home, but for many Canadians, buying a home doesn’t mean they plan to stay for long. In fact, one-in-five repeat buyers have owned more than five homes. Twenty-three percent of those surveyed plan to move again within six years according to the TD Canada Trust Repeat Home Buyers Report, which surveyed Canadians who have either purchased or intend to purchase a home that was not their first home. Less than one-third say their next move will be their last.

Canadians are split on whether their next home will be larger (49%) or smaller (51%), but there is consensus that in their next house-hunt, they intend to find a fully detached home. Seven-in-ten repeat home buyers are looking for a fully-detached home – even those currently living in condos, townhouses or semi-detached homes are looking for fully-detached homes for their next purchase.

Financing their new home

Half of Canadians say the proceeds from the sale of their current home will be less than the value of their new home, meaning that they will need to take out a mortgage (51%).

Most home buyers will try to save money on their mortgage. Eighty-three percent will put down as much as they can afford for a down payment. A further two-thirds say they will save on interest payments by choosing accelerated payments (weekly or bi-weekly instead of monthly). Sixty-one percent will save on interest payments by choosing a shorter amortization period for their mortgage. Still, 21% say they will take out the maximum mortgage that they qualified for from their bank (this increases to 28% of those under 40).

“It is encouraging that the majority of Canadians are taking steps to save money on their mortgage,” says Farhaneh Haque, Regional Sales Manager, Mobile Mortgage Specialists, TD Canada Trust. “I recommend that home buyers buy the house that fits their budget, not just their lifestyle. After all, if you buy a house that is too big for you to afford, you could be giving up that lifestyle just to pay it off.”

Mortgages for repeat home buyers

Two-thirds of repeat buyers have a mortgage on their current home; 72% intend to use their current lender when they purchase a new home. The top reasons for switching among the remaining 28% are better rates (60%), better customer service (33%) and better mortgage terms (28%).

“There are many options available to repeat home buyers and a mortgage expert can help you choose the right one to save money so you can own your new home faster,” says Haque.

The TD Home Buyers Report found that nearly 60% of buyers don’t know that they have options or haven’t thought about their options for their current mortgage. Haque offers these tips for buyers:

* Take your mortgage with you when you move. Many banks will let buyers take their mortgage with them, even if they need to increase their principal amount. This gets blended at the current market rate with the existing principal at its original interest rate.

* Use your mortgage as a selling feature. If the seller’s mortgage interest rate is lower than current market rates, the purchasers may be able to take on the seller’s mortgage when they move.

The TD Canada Trust Repeat Home Buyers Report showed that only one-third of repeat buyers bring their current mortgage with them to their new home and just 8% use it as a selling feature of their prior home, allowing the new owner to assume their mortgage.

Why buy another home?

The top factor that influences the decision to move is retirement (29%). Other factors include being bored of their current home (16%), investment opportunities (15%) and market conditions (15%). Fourteen% say they had always planned to move but were waiting to save enough money.

The top considerations for Canadians’ next home are the layout of the home (98%), the size of the home (97%) – though they are divided on whether to go smaller or bigger — and price (96%).

Selling their current home

The majority of home buyers plan to sell their current property before purchasing another one (84%). Of the remaining 16% who will keep both properties, 39% will use one as a rental property or investment property (20%).

Those selling hope to improve the resale value of their home by renovating (54%) or redecorating (52%).

Fifty-five percent of Canadian home buyers are cautious saying they wouldn’t buy a new home until their current home is sold – but 45% say they would put in an offer if the perfect home came up for sale and hope that their house sells.

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Contact the Jeffrey Team for more information  -  416-388-1960

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Category: Ajax Real Estate, Buying Real Estate, Detached Homes, General Real Estate, Mortgages, Pickering Real Estate, Selling Real Estate, Semi-Detached Homes, Townhouses | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Laurin Jeffrey | September 26, 2010
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Coming to ‘Terms’ with Real Estate

Bill Johnston – Toronto Sun

From major league sports to the medical field, every profession has its own unique lingo and real estate is no exception. Since a home is likely to be the single largest purchase you will ever make, it’s worthwhile to have an understanding of some of the terms most commonly used in the real estate world.

There is a distinction between real estate practitioners and those who can use the certified “REALTOR®” trademark.  While all real estate professionals are required to achieve registration with the provincial regulator, the Real Estate Council of Ontario (RECO), REALTORS® are those who also choose to belong to the Canadian Real Estate Association by joining a local board like the Toronto Real Estate Board. Boards operate MLS® under license from the Canadian Real Estate Association, and Members abide by the professional standards of business practice.

Using the MLS®, a REALTOR® can contrast your existing or prospective home with those recently sold in the area, developing a CMA or Comparative Market Analysis, to help you determine a suitable offer or listing price.

You may have noticed that some REALTORS® are Salespersons and others are Brokers. While all real estate professionals begin their careers as Salespersons, many choose to pursue RECO’s more advanced Broker designation after two years in practice.

A Broker of Record meanwhile, is an individual who is responsible for the operation of a real estate company, or brokerage. Salespersons and Brokers act on behalf of the brokerage and the Broker of Record is responsible for ensuring supervision of their activity.

When you work with a salesperson or broker, you will have the opportunity to determine whether you want to be represented as a Client or as a Customer.

By opting for Client status, you are choosing to contract with a real estate professional and the brokerage they represent, so that they will act in your best interest throughout the duration of your transaction.

By choosing Customer status, you have agreed that the real estate professional and their brokerage are not required to represent your interests and you are not obligated to work exclusively with them.

Once you have chosen to work with a REALTOR® you may choose to list your home on MLS® and may be presented with an array of marketing options, one of which can afford your listing heightened exposure by displaying it on the websites of other brokerages. This is referred to as IDX, or Internet Data Exchange.

When you peruse listings on REALTORS’® websites you will notice a number of abbreviations to describe a home’s features like elf – electrical light fixture, fp – fireplaces, and cac – central air conditioning.

These are just a handful of commonly used terms in the world of real estate. To learn more about the process of buying and selling a home talk to a REALTOR® and visit www.TorontoRealEstateBoard.com where you’ll find Greater Toronto Area listings, a schedule of upcoming open houses, plain language explanations of real estate forms and more.

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Contact the Jeffrey Team for more information  -  416-388-1960

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Category: Ajax Real Estate, Buying Real Estate, Condos, Detached Homes, First Time Buyers, General Real Estate, Legal Real Estate Issues, Miscellaneous, Mortgages, New Homes, Oshawa Real Estate, Pickering Real Estate, Real Estate Investment, Real Estate Taxes, Scarborough Real Estate, Selling Real Estate, Semi-Detached Homes, Townhouses | Tags: , , , , , , , , , , , , , , , , ,
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