Durham Region Real Estate Information

Well this post is a little out of my usual real estate character but I wanted to mention a great resource for residents (that would be prospective home buyer and home sellers too!) here in the Durham Region.

This link is to a website for fresh produce sellers here in Durham Region. You can buy direct from the grower and the website lists farms and local farmers markets and the produce they offer! Pretty cool!

Anyway, here's the link and I hope you enjoy and try it out! Some of my best friends are farmers!

http://www.durhamfarmfresh.ca/

Over the past two weeks the "Big Banks" have lowered their fixed rate mortgages with little fanfare.

Just last week, both RBC and BMO lowered their fixed rates approximately one tenth of a percentage and other lenders quickly followed suit initiating a downward trend. Beginning this week BMO, RBC, Scotiabank and TD dropped their fixed rates by another tenth of a percent. CIBC and other lenders fell in line on Tuesday.

A couple of factors are driving this trend, namely yields on bonds fell, reducing the cost of borrowing for the banks and secondly, lenders are facing increased competition as we head into the lazy days of summer and consumers head to the cottage. They need business on their books; tougher to get when fewer people are borrowing but good news for those who are looking for a mortgage.

Variable rates also moved downward despite the cost of borrowing in the segment remaining unchanged. Some brokers are listing rates as low at 2.05% and the banks may get more aggressive here, as well.

Remember that these low rates are unsustainable in the long run. The Feds keep warning it's only a matter of time before rates increase. We think that is some time off but if you're beginning your home search and plan on buying in the next four months or so, it only makes sense to lock in a rate before you start looking at homes. If rates continue lower, you'll always get the lower rate but if they tick upward, you'll be protected.

With Re/Max, you can be assured of getting the very lowest rate possible due to our sheer volume of business with the lenders.

 Canada's recreational property market is gaining serious traction as savvy purchasers take advantage of ideal conditions, setting the stage for what is expected to be the best market in recent years, according to a report released today by RE/MAX.

The 2011 RE/MAX Recreational Property Report , examining sales and trends in 46 markets across the country, found that substantial equity gains and recovering stock portfolios in major centres have contributed to an upswing in demand from coast to coast.

Demand rose in 78 per cent of markets, while sales were up or on par in 41 per cent of recreational centres. Inclement weather, including a late thaw and an abundance of precipitation, resulted in a slow start in many areas, but should be offset by stronger peak season activity. While starting prices have remained relatively stable across the board, there are deals to be had in virtually every region - especially at the top end.

Luxury sales, as a result, have climbed in at least half the markets examined. Inventory levels are healthy throughout the country, although there has been some tightening reported at entry-level price points in about one-third of markets. Some of the best selection of product in recent years is now available.

If you are thinking of buying a cottage or recreational property, our advice is to use a local agent that is knowledgeable in the area. I have a network of agents throughout the Muskoka, Haliburton & Kawartha Regions as well as points eastward toward Kingston and Ottawa. I will select the right agent for you and follow up with both them and you to ensure you're receiving the service you deserve!

Call today for more information on how I ensure you're getting a good agent that puts your needs first...905--668-1800.

Here is the average pay back for your bathroom renovation dollars.

Good news for homeowners who missed out on the very, popular home energy retrofit program that expired in March.

The Government of Canada has announced in yesterday's budget that this program will be extended for 1 year. This was a fantastic program that, combined with the Ontario Provincial energy credits, gives back a substantial amount of the cost of home upgrades that result in increased energy savings to the home-owner.

Upgrades that would qualify include new furnaces, air conditioners, windows, insulation and more. I'm including a link to the budget document however further details on the retrofit program are expected to be released in the near future and I'll post that once it's available.

Here's the link:

http://www.budget.gc.ca/2011/home-accueil-eng.html

June 3, 2011 -- Greater Toronto REALTORS® reported 10,046 sales in May 2011 – up six per cent compared to May 2010. This result was the second best on record for May under the current Toronto Real Estate Board service area. The number of new listings in May, at 16,076, was down 15 per cent compared to last year.

"Positive economic news and low borrowing costs led to strong sales through the first five months of the year, including the increase in May," said Toronto Real Estate Board President Bill Johnston. "At the same time, the market has become much tighter compared to last year, due to a substantial dip in new listings."

Homes were on the market for an average of 23 days and sold for an average price of $485,520– up nine per cent compared to $446,593 in May 2010. The strongest rate of price growth was experienced for single-detached homes sold in the City of Toronto.

"We have seen clear-cut seller's market conditions emerge over the past two to three months," explained Jason Mercer, TREB's Senior Manager of Market Analysis. "The robust price appreciation that we have seen will hopefully prompt more households to list, resulting in a more balanced market later this year," continued Mercer.

Median Price
In May, the median price was $400,000, from the $376,750 recorded during May of 2010.

The Canadian Association of Accredited Mortgage Professionals (CAAMP) spring survey has produced some interesting results:

22% of mortgage borrowers increased their payments during the past year

For mortgages repaid in the last 20 years, one third were paid off early

Home equity lines of credit (HELOC) represent 22% of all mortgages, making these lines of credit a $215 billion dollar industry

On average, Canadian homeowners have $222,000 in home equity, equal to 66% of the value of their homes

Investment (28%) replaced debt consolidation (19%) as the number two use of home equity takeout. Home renovations remain number one at 36%.

During the past year homeowners have borrowed $26 billion in additional equity from their homes. 15% of homeowners withdrew equity, averaging $30,000.

Of the approximate 9.45 million homeowners in Canada, an estimated 1.87 million hold a mortgage and HELOC combined, 770,00 have a HELOC only with no mortgage and approximately 3.83 million homeowners of a mortgage only. About 3 million Canadians have no debt on their homes. I'm not one of them.

How about you? Did you increase or decrease your mortgage indebtedness over the past year?

Attached below are the 1st Quarter results of market share for the various, leading real estate companies in the Toronto Real Estate Board trading area, including Durham Region. This simply gives you an idea of how companies stack up by trading volume.

Our annual Re/Max Yard Sale For The Cure is being held at our Ajax location on Saturday, May 28th! Please come out and join us for some great sales, good food and entertainment!

If you'd like to donate any items, call me at 905-903-9250 and I'll arrange to pick them up. Here's an attached flyer with all the details.

As a Realtor for the last 14 years, I have experienced how the changes in the economic environment have impacted the financial future of Canadian homeowners. The debt to income ratio has increased from 113% in 2003 to 150% at the end of 2010.  The Bank of Canada has projected an increase to 160% by the end of 2011. This is definitely a concern for Canadians. 

A recent report by a Federal Task Force has linked the rising debt problem to Financial Illiteracy. "While skyrocketing household debt is the most obvious example of imprudent financial decision making, it is just one indicator of a larger problem.  Financial illiteracy threatens the long term health and well-being of our economy as a whole.  Without an understanding of general financial concepts, we tend to make poor financial decisions with potentially disastrous consequences."

Existing and potential home owners are the most affected, as the new mortgage rules, which took effect on March 18, 2011, will make it harder to buy a new home or consolidate debts into a mortgage.

When people buy their first home, they have the best intentions to pay off their mortgage and other loans, and are optimistic about their financial future.  However, even carefully laid financial plans can be thrown off track by unexpected life expenses, such as, home repairs, family illness, or even job loss. Debt freedom is possible, but it requires a commitment to financial discipline with professional advice on how to plan for the long term. This must be accompanied by an accountability program.  Unfortunately, most of us are not aware of the above solution or how to get access to it.

 In an effort to better serve my past, current and future clients I have developed a strategic alliance with emphasis on the following:

1)      Assist and prepare new home buyers for home ownership.

2)      Show existing home owners how to pay off their mortgage faster.

3)      Provide access to financial planning with accountability.

This information will serve not only those of you who are new home owners, but also current home owners in need of a better financial plan for savings and debt reduction as well as those who are saving for their first home.

You can view the Report of the Task Force on Financial Literacy here.

Please contact me for additional information.