Archive for February, 2008
Was Real Estate a Good Investment 10 Years Ago? You Betcha!/A Review of the Last Decade in Canadian Real Estate
February 29th, 2008 Categories: Investing in Real Estate, Mortgages, Economics, Finance, Real Estate News
ReMax recently published a 26 page review of the last decade in Canadian real estate.
If you are interested in specific cities and regions and what’s been going on, this report provides a good synopsis, shows the statistics and the factors that have been influencing change in local areas.
Not too technical for the layperson to follow.
The accompanying press release issued by ReMax revealed some facts that you may find interesting:
1. What factors influenced the growth?
“Never before have we seen such a continuous run up in Canadian real estate. Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation.”
“Pent-up demand, population growth, tight inventory levels, and the longest economic expansion since World War II collectively fueled one of the best decades on record for residential real estate in Canada.”
2. How much did prices rise nationally over the decade and annually?
Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return.
(How’s that for a good return on investment?, says Boris)
3. Which city had the highest price increase?
Edmonton, Alberta, which saw a 203 per cent upswing in housing values – or an 11.7 per cent increase annually – with average price rising from $111,587 a decade ago to $338,636 in 2007.
Calgary ranked second second in terms of price appreciation at 189 per cent, Kelowna at 179 per cent, Saskatoon at 137 per cent, Winnipeg at 118 per cent, Victoria at 114 per cent and Greater Vancouver at 99 per cent.
3. Which province had the highest increase in unit sales?
Prince Edward Island, with the number of homes sold up 119 per cent in the 10-year period.
4. What about the impact of foreign buyers?
“Immigration and in-migration have played a serious role in jumpstarting residential housing markets, particularly in British Columbia, Alberta, and to some extent, Saskatchewan over the past decade.
At first, there was an influx of American buyers, especially in Canada’s coastal regions and recreational hot spots, as our southern neighbours took advantage of the almighty US greenback. Then the European and Middle Eastern purchasers flooded the market, buying up real estate considered ‘cheap’ by international standards. In recent years, there have been a growing number of purchasers from Mainland China. From a global perspective, there’s no question that Canadian real estate brings good value to the table.”
HILARY’S TWO CENTS:
One of the things that these solid stats reveal to me is the strength of the Canadian economy on which the Canadian real estate market is predicated. Since Canadian home prices when compared to global prices are still relatively low, Canadian real estate continues to be a good buy for foreigners.
The challenges being faced in the U.S. economy will impact our national housing market such that the housing price appreciation we have seen in the past decade will be moderated. However, at the risk of stating the obvious, (Economics 101) I believe we will continue to see price appreciation especially in areas where demand for housing continues to be strong and there is a limit to supply. This includes GTA, Oakville, Burlington.
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Confessions of a messy real estate blogger… OK I said I would declutter my office but….
February 28th, 2008 Categories: Blogs, Blogging and the Blogosphere, Lighten Up
A couple of weeks ago, a post I wrote inspired a few people to get rid of the clutter monkey. But I confess I got caught up showing houses, going to seminars, making phone calls, blogging and looking for sheets of paper that were in piles on my desk.
Tomorrow I have set half a day aside for this self-imposed task.
(Hope you like the PROCRASTINATION cartoon.)
| Discussion: 2 Comments »
Ten Things I Learned from Barack Obama and the Democratic Debate
February 25th, 2008 Categories: Food for Soul and Spirit, Lighten Up, Real Estate News
Last night I kept flipping back and forth between the Oscar Extravaganza, in its 80th year, and the Democratic debate between Senators Barack Obama and Hillary Clinton.
It occurred to me that as real estate professionals we are running for election every day. The forces of competition result in us having to compete against other professionals every time we offer to help someone sell or buy a home.
According to the polls, those who watched the debate were more likely to vote for Senator Obama.
What are some of the keys to his growing appeal? I noticed a few things that I’ll tuck away as “good learning”.
- Confident but not cocky
- Comfortable and relaxed
- Didn’t try too hard
- Spoke slowly and clearly
- Assertive but didn’t put down his opponent
- What you see is what you get
- Unruffled by competition and criticism
- Passionate but not emotional
- Doesn’t take himself too seriously
- Gracious and sincere
When facing a competitor in any arena, these are winning qualities to emulate. WHAT DO YOU THINK?
For help in navigating the real estate maze, call Hilary today.
| Discussion: 4 Comments »
All the Mouth-Watering Sushi You Can Eat at SAGA SUSHI in Burlington
February 25th, 2008 Categories: Burlington Beat, Food for Soul and Spirit, Places to Eat
We have had only one other experience with an “all you can eat” sushi bar. It was a place in Mississaua which dished up quantity sushi but the quality had been sorely lacking.
So we didn’t have our hopes set too high when we decided to try SAGA SUSHI in Burlington, which opened just a few months ago.
Our 16–year old Nathan could easily consume a double portion of the usual sized sushi dinner and I could probably do the same, so the thought of unlimited portions was very appealing.
Our family of four, including two teenagers, thoroughly enjoyed the evening.
The restaurant decor was modern and appealing. Staff were friendly and good-natured and served us promptly, especially considering every table was full. It was a Saturday night. We were there from about 6 p.m to 7:30 p.m., and there was a perpetual line-up at the door. (Not sure if they allow reservations.)
We had miso soup, lots of eel, egg, salmon and white tuna sushi. Then we tried several of the different rolls. The crispy roll was very good. We had teriyaki salmon and teriyaki chicken, barbecued eel and some tempura. It was fun to have the freedom to order exactly the kind of sushi we like, and to try out new things, like the dumplings, Japanese curry and seaweed salad.
Sushi, main course, salad, soup, dessert (green tea and mango ice cream) Japanese tea, Coke, Sprite were all consumed with abandon. The fee was $20.00 per person with no extra charge for dessert or drinks. Hard to beat if you are a sushi lover. (Don’t go if you are on a diet.)
We will definitely be back.
Saga Sushi, 2011 Plains Road East (corner Brant and Plains), Burlington, Ontario. Telephone: 905–633–9988
| Discussion: 7 Comments »
Oakville Museum Celebrates Black History Month
February 23rd, 2008 Categories: Historical Oakville, Oakville Events, Things to Do in Oakville
In honour of Black History Month and Heritage Week, a new exhibit and multi-media presentation The Underground Railroad: Next Stop Freedom has come to the Oakville Museum at Erchless Estate.
Starting February 16, this moving theatrical experience chronicles the history of black Canadians in the community through the story of Deborah Brown and her husband Perry who escaped slavery in Maryland to freedom in Canada.
The exhibit was created by Parks Canada in collaboration with the Royal Ontario Museum and the Ontario Black History Society. For more information, call 905–338–440 or visit www.oakvillemuseum.ca.
| Discussion: 2 Comments »
Canadian Recreational Property Buyers Skipping U.S. for Canadian Winter Properties
February 23rd, 2008 Categories: Fifty-five plus, Investing in Real Estate, Real Estate News
Trying to decide between buying a ski chalet or condo in Canada and property in Florida? Many Canadians are making the choice to buy closer to home.
“More Canadians are choosing to buy recreational homes in Canada” says a recent Report on Winter Recreational Property published by Royal LePage:
“While sunshine states such as Florida and Arizona have long enticed Canadians to purchase their winter retreats in warmer-weathered American cities, the uncertainty clouding the U.S. housing market has many Canadians favouring properties north of the border.
In fact, 36 per cent of Canadians who own a winter recreational property or who are considering purchasing one cite they are more inclined to buy a property in Canada than in the U.S. because of the economic uncertainty plaguing our southern neighbours.”
Here are some of the findings of the poll (conducted for RLP in January 2008 by Angus-Reid):
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Strong demand combined with limited mountain-based properties has prices ranging from $180,000 to $850,000 in Quebec, $400,000 to $1 million in Collingwood, and $450,000 to $2 million in British Columbia for a standard detached, mountainside, three-bedroom chalet.
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A shortage of listings in areas of high demand, such as Whistler and Fernie, has led to property prices appreciating by as much as 10 and six per cent, respectively, in the past year.
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More and more European buyers are being attracted to purchase property in prime ski areas such as Mont Tremblant, Canmore, Whistler and Fernie.
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Eight per cent of Canadians own a winter recreational property or are considering purchasing one in the next three to five years.
You can access the full report in pdf format.
While Canadian recreational properties are a good investment, there are still good buys to be had in Florida, Arizona and other U.S. states. Call Hilary for connections to good local referral partners in Canada and the U.S.
| Discussion: 2 Comments »
Help with Estimating Home Improvement Costs and Payback on Investment
February 22nd, 2008 Categories: First Time Buyers, Home Maintenance, Investing in Real Estate, Mortgages, Economics, Finance, Oakville Real Estate News
Here are two very common questions that homeowners or homebuyers ask me. I wanted to share some websites that have useful information to address these questions:
1) “I am buying a home. How much will it cost to fix/add/renovate X?”
![739101_low[1]](http://theoakvillebuzz.com/files/2008/02/739101-low1-small1.jpg)
Carson Dunlop just released their 2008 estimate of home improvement costs. This is a useful tool when you are looking at a home to buy and want to estimate how much it will cost to repair, improve or renovate something.
Carson Dunlop updates these costs yearly so they provide a useful gauge of current costs, for everything from installing a new furnace, fixing a roof or adding a fireplace.
Click here to access this guide from the Carson Dunlop website, print out and carry with you when house-shopping.
2) “Will I get my money back if I renovate my kitchen/bathroom/or put in a pool?”
A handy tool for estimating payback on home improvement is a renovator calculator provided by AIC, the Appraisal Institute of Canada.
The Appraisal Institute of Canada has developed RENOVA, an interactive web-based guide to the value of home improvements. RENOVA is designed to give consumers a better idea of the return on investment they can expect for a variety of home improvements. It does this by providing a payback value range derived from the cost of the improvement expressed in dollars.
For example, a homeowner might indicate that he or she is considering spending $10,000 on remodeling the kitchen. The calculator will then provide a payback amount of between x and y dollars for that particular renovation. Homeowners can choose from among the 20 most popular renovation improvements, identified by a survey of AIC members.
LOOKING TO SELL THIS SPRING? Now’s the time to consult a REALTOR, call Hilary at 905–599–3311 for expert guidance and advice about the home-selling process.
Like this post? Read also:
Ten Ways to Keep Heating Costs Down this Winter
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Bank of Canada Governor Confirms Canadian Interest Rates to be Cut in Coming Months
February 19th, 2008 Categories: Investing in Real Estate, Latest Real Estate Market News & Stats, Mortgages, Economics, Finance
Bank of Canada Governor Mark Carney signaled over the weekend in Tokyo, where he was attending a meeting of finance ministers and central bankers from the Group of Seven nations, that bank policy makers will cut interest rates in coming months as slowing export growth threatens Canada’s economy.
The next interest-rate decisions are scheduled for March 4 and April 22.
For more details on this see Bloomberg News Article on Declining Canadian interest rates.
Like this post? See also recent posts by Hilary
Getting a Mortgage Today? Fixed or Variable Rate?
Canadian Interest Rates Anticipated to go down further/No Cause for Alarm for Canadian Home Prices
Remember changes in the marketplace often spell OPPORTUNITY, but lack of information can make people fearful.
Planning a Move? Contact Hilary now for a no-obligation consultation on Current Financing Options and what’s going on in your local market.
| Discussion: 3 Comments »
Oakville and Milton Home Sales and Price Changes for January 2008
February 19th, 2008 Categories: Halton Real Estate, Investing in Real Estate, Latest Real Estate Market News & Stats, Mortgages, Economics, Finance
|
Oakville |
2007 |
2008 |
% C hange |
|
No. of Residential Sales |
217 |
194 |
-11% |
|
Average Sale Price |
$419,533 |
$541,935 |
29% |
|
Median Sale Price |
$362,500 |
$415,000 |
14% |
|
Milton |
2007 |
2008 |
% C hange |
|
No. of Residential Sales |
92 |
74 |
-20% |
|
Average Sale Price |
$315,094 |
$335,493 |
6% |
|
Median Sale Price |
$300,000 |
$320,000 |
6% |
Average and median prices are continuing to rise, while number of sales declined in January 2008 versus last year. Inclement weather in 2008 versus a milder 2007 as well a consumer concerns over the impact of U.S. market on Canada have moderated the number of homes listed and sold for the start of the year.
Stay tuned to The Oakville Buzz for monthly stats on home prices and sales volume. Source: Oakville Milton and District Real Estate Board
| Discussion: 1 Comment »
THINKING OF DOWNSIZING? TAKE A LOOK AT TORONTO’S SMALLEST HOUSE!
February 19th, 2008 Categories: Fifty-five plus, Lighten Up, Real Estate News
My friend Ron Clarke, of RP Clarke Financial Services, sent me some photos of Toronto’s smallest house, reportedly for sale for $179,900.
In Canada we are not used to living in small spaces but in some parts of the world, like Europe or Japan, learning to live in very tiny spaces is commonplace.
Thought I’d share the photos, just for fun.
Here’s the front of the house.
The house is located near Dufferin and Rogers, in Toronto.
It was built in a laneway between two houses. House is just under 300 square feet.
Small covered patio in front.
This is the living room. Definitely cosy!
Here’s the kitchen and adjoining laundry room. How much counter space does one really need?
No mention of fridge. New washer/dryer and stove.
Bedroom comes with built-ins
and Murphy’s bed.
The back patio. Lemonade for two?
Looking to downsize? Give Hilary a call to chat about it.
| Discussion: 1 Comment »
