What a great day for charity with the Re/Max Yard Sale For The Cure. On May 30th over 40 Re/Max offices (including ours) raised over $90,000 in

just one day in support of breast cancer research and treatment!

Way to go!  We're staying in shape (sort of) for our 5km Run For The Cure in

the Fall in Oshawa and I just might be asking for a small donation!

I read this article and couldn't help commenting on it's absurdity...

Canada resale home prices fall in April: survey

TORONTO (Reuters) - Repeat sale prices for Canadian homes fell for a fifth straight month in April, dropping 6.7% from the same month a year earlier, a report on Wednesday showed.

The Teranet-National Bank National Composite House Price Index, which measures the rate of change of prices for single-family homes in six metropolitan areas, also showed prices were down 8.9% nationally from the peak hit in August last year.

"On the whole, the report offers a sobering assessment on the state of the Canadian housing market as it suggests that the correction in home prices has continues unabated, and is in fact accelerating," sad Millan Mulrain, economics strategist at TD Securities, in a note.

Mulraine points out, however, that the Teranet-National data is at odds with some other statistics such as the Canadian Real Estate Association's latest figures.

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I shouldn't get upset with media reporting since the experts change their story on a weekly basis and are, in fact, commenting on what is already past. It's non-news yet some of the statements are astounding.

Mr. Mulraine actually stated that the "truth" lies somewhere in the middle of what this Teranet report and the Canadian Real Estate Association reports say however, that fact was nowhere to be found in the Rueters snippet.

Here's some street meat:

Since the beginning of the year my real estate sales team has been involved in 11 multiple offer situations with buyers competing to buy well priced homes at extremely low interest rates.

May statistics, produced from actual sales in the communities I am quoting show that Brooklin, Ontario for instance, posted a 5% increase in average resale price between the period May 2008 and May 2009. Sales in number of units sold increased a whopping 54.5% in that same period. The number of Sales to New Listings Was An Unheard of 77.27% in May vs. 18.52% in December. Doom and gloom??

In Oshawa, one of the hardest hit manufacturing cities in Canada, this same period between May 08 and May 09 produced an increase in resale price of 1.7%. The Average resale price was up 10% from November of 2008.

Just last week The Toronto Real Estate Board reported a 19% increase in the resale homes in the first two weeks of June in the GTA (number of units sold) over the same period last year.

So how, then, does the above report substantiate their statement that the correction in housing prices in Canada continues "unabated" and in fact, is accelerating?

This type of reporting and statistical analysis by people who fail to do their homework properly is completely irresponsible. The economist (that's the first red flag) is reporting a conclusion from a single report that, at best, admits it's at odds with established industry standards. So why report it?

I have no argument with the bleeding obvious: yes, home prices have softened (a good thing), the manufacturing sector has been hard hit and on and on. We know all the stories by now.

At the same time, while unemployment remains high, the number of people working is still well above 90%, interest rates are at all time lows, the first time buyers market and move up buyers markets are so good that it's now getting tough to find inventory in some communities (just ask some of my clients who continue to wait for the right home to come onto the market), housing affordability is the best it's been in a decade and there is growing consensus the worst is over.

I do not see housing price corrections continuing unabated at an accelerating pace. In fact, I was urging buyers to buy back in January through March. That was the best time period to negotiate price. That part is over.

Yes, homes need to be priced well at that means 5% to 6% off last years price, but when those homes are priced right and show well there is often competition for them.

That's the reality from where I sit...but I'm not an economist.

GTA  and Durham Region May Resale Housing Sales Higher Than Last Year

The May resale numbers showed an increase of 2% over May of 2008 to 9,589 units sold, the first annual increase since December 2007.

The average resale price also increased to $395,609, which is down less than 1% compared to the same month last year. Home sales have increased strongly relative to new listings which has helped to boost home prices.

It's easier to see where we've been than where we're going. In looking back we definitely saw a "bottom" in December, January and February.

Unemployment remains high, the manufacturing and auto sector are still be pillaged and there will be on going concerns with regard to deficits and interest rates increasing to finance those deficits, both in Canada and the U.S.

But, for the time being...it's a great time to buy a home. Low interest rates, affordable housing, government incentives. If you're thinking of taking advantage of this superior home buying environment, lock in a pre-approval NOW to secure the peace of mind that you're getting the very best interest rate possible.

The graph below shows two interesting trends. Days on market, how long it's taking on average to sell a home, has dropped dramatically from a peak in January indicating increased buyer activity. Sales to Active Listing ratios have steadily trended higher meaning that sales activity has increased faster than the number of new listings coming onto the market.

The Toronto Real Estate Board has reported 5,185 transactions in the first half of June - an increase of 19% compared to the same period last year.

The "affordability" factor has played a driving role in market activity and first time buyers are taking advantage of low interest rates, an average 5% - 6% decline in home values, increased inventory and motivated sellers.

Interestingly, this activity has pushed the average price above last year's level by 2% for this half month time period. Though the average price is down on a year over year basis you can see that, at least in the short term the market is very active, good news for both sellers and buyers.

Five Year Rates Go Up

We have quite a few clients now pounding the pavement for homes. If you're gearing up to shop yourself it's important to initiate the relationship with your lender sooner rather than later.

5 Year rates took a bounce over the past few days and we were able to secure some 120 rate guarantees for our clients. Some other mortgage products also went down, however most first time buyers end up choosing the 5 year rate.

The moral of the story is, if you're thinking you might move into a new home in the next four months, you'll now pay a higher rate on the 5 year term than you would've yesterday. You can avoid these increase by acting now to protect yourself against any further increases.

If this sounds like you, please get in touch with us so we can lock in the lowest rate for you. Don't delay with this important need aspect of your home shopping experience.

Amended Energy Audit Bill Passed - Not Yet In Effect

Bill 150, the new Provincial legislation making home energy audits mandatory for home sellers, has been passed however the Bill's requirements regarding the audit are not yet in effect, until some time in 2010.

As originally passed, Bill 150 would have required all home sellers to provide information through standardized energy audits, about the home's energy efficiency to a buyer before they could sell the property to them. After the Toronto Real Estate Board and Ontario Real Estate Association worked to raise concerns about this proposal, Bill 150 was amended to allow Buyers to waive this requirement.

The Province must now work out the details on how the home energy audit will be implemented. The requirement will not take effect until these details are finalized. Undoubtedly, the requirement will add to the cost of selling a home in Ontario.

I did some reading over the weekend centering around what the customer wants from Real Estate Agents. The question is a moving target but I had to agree with a number of insights the author suggested.

1. Service Does Not Equate Results:

Too much service is a bad thing; it keeps us Realtors focused on the minors and not the majors. Example: I could service my Seller client to the moon and back via daily updates, feedback, feature sheets, email-blasting, open houses, agent luncheons, media advertising, virtual tours, just listed cards, home staging experts, MLS advertising, reviewing title information, wells, septics, surveys etc. etc. but if the home doesn't sell, there isn't any value in these services.

Funny thing is, this is what we focus on and bundle (sell) to the consumer. Everyone wants to know what we do to sell a home but they seldom ask "Does It Work?"

To the consumer, if the home doesn't sell we aren't "doing anything." If working with an agent didn't result in a successful sale, service was valueless.

2. Agents Give Service, Customers Want Results:

85% of consumers surveyed ranked the CMA as the most vital tool. This is where agents need to "get it right" and focus the bulk of their skill sets.

Negotiation and advocacy are also key areas that provide Value to the consumer and is the reason for top producing agents to be paid accordingly. Unfortunately in these two key areas, we are often lumped together.

Our service is always top of mind, but I think I'll stay focused on "results."

Home Sales Break 8,000 in April for the Greater Toronto Area & Durham Region

In April units of re-sale homes were down 7% from April of 2008 however the housing market has gained momentum on a month-over-month basis with sales in April up 26% over March.

Toronto Real Estate Board President Maureen O'Neill stated "Conditions in the resale housing market have improved markedly this Spring. Home purchases have increased as homebuyers have taken advantage of low interest rates and slightly lower home prices."

The rate of average home price declines continued to diminish last month, due in large part to a tightineing in the resale home market. The average price for resale homes was down only 3% from the same period last year. In the Whitby real estate market, that decline was only 2.25% for the month of April over April 2008.

In my March real estate update I reported the market was improving for Sellers. How can it be getting better for Sellers and still be favourable to Buyers at the same time? It's called "balance and stimulation."

We track more statistics than I have time to mention here, but two key indicators are "Sales to Active Listings ratios" and Sales to New Listings ratios" Both have been increasing pretty dramatically each month. In the graph to the right you can see we bottomed out in Nov/Dec but also notice the dramatic increase through March/April.

market

This increase simply means the resale housing market in Durham Region is tightening...good news for Sellers as this indicates there are a good number of homebuyers in the market. More homes that are being listed are selling plus, existing inventory is decreasing. True, that's not good for Buyers so what is?

For Home Buyers, affordability is better than it's been in a decade. True, the inventory has begun to tighten however prices have not increased; in fact they still show a slight decrease. Sellers have to price for the market. Also, interest rates are at all-time lows.

I sent out an email two days ago on new rate discounts we had received from one of our lenders. Immediately, one of our other brokers sent me an email that said "I can do better." I love competition! Don't think this will last forever. I believe interest rates will increase before prices do, and this is why home buyers should act in this window of opportunity.

My team has been involved in 10 multiple offers this year in the Whitby area; the most recent just yesterday. If you're a buyer, don't let this scare you off. There are plenty of resale homes to choose from and some great deals to be had; it's still the year of the Buyer.

A new program for home buyers has just been launched by The Keith Williams Team at Re/Max Rouge River Realty Ltd.

"We decided to put our money where our mouth is in a continuing effort to bring added benefit to our clients with our experience and determined approach to negotiating the very lowest price possible on your home purchase."

On any home purchase of $225,000 or more we now guarantee that we'll negotiate at least $5,000.00 off the asking price, and in many cases much more, or we'll pay you $1,000 Cash on closing. That money can come in extremely handy at closing time.

Details can be viewed on our Buyers web page at www.DurhamRealEstateCentre.com. Some conditions apply for instance; if we are in a dual agency situation, we are prevented from representing one side over the other but in most cases of home purchasing this will be a very, relevant offer that our clients can take advantage of.

The Spring market is in full swing and this was the perfect time to demonstrate our commitment to making your real estate experience with us a complete success.

Matt and Linda bought a home the other week in Oshawa. Linda found it, actually. I think she's got a nose for trouble.

Anyway, we drove up and everything looked fine, almost. Then we went inside. Words cannot express the sight in front of our eyes. Stuff. Tons of...stuff. Everywhere you looked, everywhere we walked. I've never seen more junk in a house. Historic junk. It was sorta like that macaroni from 1968 that's still sticking to the inside of your colon.

While I was looking at all the mess with disbelief Linda was admiring the cathedral ceilings. That should've been the first warning signal!

Everything, including the dirt, dated from another century. Ok, so it's only been 9 years since the turn, but you know what I mean. This was brutal. The paint on the bedroom ceiling was original and this home dated to the early 1960's, when GM was booming. Really interesting things happen to paint and auto industries over the years.

Then there was the "crawl" space. And Matt did crawl. Yes, he came back out but he was a changed man. There was stuff stored in boxes, but the boxes had long since disintegrated so the "stuff" was in piles. There was stuff (organic living stuff) on the stuff. Fortunately, Matt was able to see right through the foundation wall so at least he had a little ventilation.

 This is a good news story, however. You see, Matt and Linda are really talented. They can do things with their hands. There's brains and brawn here and fortitude like so many Durham Region residents possess. They'll give this place a new life. You see, the bones were good. Lovely cathedral ceilings, huge living room that could accommodate a new, open concept kitchen, great location and a large lot. I'm tracking this one!

I'm sure they'll have their moments but I know these people. Resourceful, smart and hard-working! They'll make it. This is one of the rewards of working in real estate. They paid under 190K for the dump. I'm guessing they'll spend 30K to 40K and I bet Linda will watch every penny. The last home on the street sold for 285K so I'm guessing they'll be all right.

No, they aren't flipping it. They're going to live in and enjoy it. The best kind!

Good luck Matt and Linda! I'll just keep my distance for now...

p.s. the names were changed to protect the innocent.