Tom Germann - Sales Representative - Apex Results Realty Inc.

Finally after almost 2 years the market has slowed down a little bit right now.
But there is a very real problem. Most first time home buyers are now stuck. Prices in our area have gone up so much and so fast the lenders are now concerned. This means that there are stricter lending rules. When you go in to get prequalified at the bank or mortgage broker expect that you will likely see a home appraisal after you purchase and sometimes the lender is saying NO to the property.
The answer?
Build up a deposit. Don't buy at the top price you can afford. Work on cleaning up any credit issues and pay off current debt you have.
Finally, no one likes this option.
If you still can't get in right now? Just keep saving and wait. I am not saying we are going to have a real estate collapse. But prices do tend to come down at certain times.
Also you may need to adjust your expectations.

Get planning and get everything sorted out before going out to look at property!

This spring market is so hot. Reasons include a limited supply of housing inventory and a high demand.
First time home buyers are going to have the hardest time in this market. If they only have 5% down and are going into bidding war after bidding war they aren't going to win. Not in this region.
My suggestion is to try and see if you can do it successfully. At the same time keep building up the deposit and if you are not winning in competition because the lenders are putting restrictions on you, then you wait until the market slows down a little.
Build up cash reserves and have patience
Consider putting some of that deposit into RRSP's now for the tax break if you are okay pulling it out for the home buying plan....

Stay positive and calm!

Our market is booming along right now and there is just not enough inventory. Sellers have an advantage if the house is updated. I brought an offer on a property and there were a total of 22 offers on that house in downtown Hamilton.

22.

With my current buyers as I am doing the ongoing research it is dangerous to say 'this is the trend'. But I have seen nicely finished properties sell for approximately 20% over list price when those properties were priced properly.

The spring market is coming. In fact it looks like NOW is the time to be listing those homes for sale! Low inventory means faster sales times and higher sales prices.

So interest rates may have bottomed out finally.
I can fully understand this thought. I just have a difficult time understanding why this is in a publication in Canada?
Interest rates have been at a historical low in this country for quite a while now. They have been slowly coming down for about fifteen years.
I do believe that this is as low as interest rates (for mortgages) can go. All that they can do at this point is stay at this level.
Eventually when they bump up a little bit there will be no need to panic.
Be a bit conservative, have some savings and slowly pay down that mortgage.
Remember $50 per month more on your mortgage will take almost 3 years off the life of that mortgage. $50. Per month.

So we are just into October.
Better late than never, The 24 October market update from myself.
https://youtu.be/ZhGZY90WJ5A

Burlington real estate update 24 October 2016 Good day everyone! I just wanted to say life is BUSY and I am doing the best I can to get these up. The market is still booming along. We are still seeing la...

Pedestal sinks. I really dislike them and would never recommend people have them unless it is in a powder room.
The problem? No storage and this will sound strange, kids tend to lean on them a great deal when they are younger. Vanity stands have more points of contact and are sturdier.
I have seen pedestal sinks that are getting loose because of age or because the kids are leaning all the time.

It may sound foolish but I really dislike pedestal sinks.

So the mortgage changes that came in were supposed to lead to a flurry of new activity as people try to purchase before the new rules came into affect.

Not much point.
there is already a shortage of property on the market and a fair number of first time home buyers. The short term effect of heating the market up even more just didnt happen.

So if you want to buy and are now nervous adjust your expectations and you can still buy. It may just take a bit longer to get the downpayment or fix any issues that are slowing you down.

I just drove by a mortgage office on the way to an appointment.
The signage that said "second and third mortgages at good rates" was worrying.

At some point the real estate market will adjust and prices drop.
I understand 2nd mortgages.
Stay away from the 3rd mortgages.

Don't get yourself in that situation.

The new changes that have been put in place are as always meant to slow the market down as well as address whatever other issues that the government has with the real estate market.
Interesting to read if you have investment properties or are looking at getting into that in future.
http://business.financialpost.com/personal-finance/taxes/converting-your-principal-residence-into-a-rental-property-or-vice-versa-heres-what-ottawas-new-rules-mean-for-you

Converting your principal residence into a rental property (or vice versa)? Here's what Ottawa's new rules mean for you Recently announced changes to the principal residence exemption (PRE) and has prompted a flurry of questions from readers — here’s a quick review of the rules

The market has been hot. It is still moving along, properties are selling in the summer.
But the huge insane rush that we just saw has slowed down.

Prepare for the fall market.

So this year is going to be strong and next year we will see prices flatten out.
Possibly.
With such large and fast gains housing affordability becomes an issue. Income has not gone up as fast as housing prices.
How can people afford to buy when a detached home costs over $500,000 in a market?
They buy a starter, such as a townhouse or apartment. The people who ARE buying the detached house either have good jobs and have been preparing for a while OR they have just sold their attractive starter.
Higher prices are in every segment of the market.
I do agree with the idea that housing prices should flatten out so that everything else can in essence 'catch up'. But I am not sure if short of government intervention we have the circumstances that are necessary to force a drop.
The government has tried to slow our market before and failed in the GTA. Perhaps the Buyers and Sellers will do that now instead.
From The financial Post
15 June 2016:
http://business.financialpost.com/personal-finance/mortgages-real-estate/canadas-crazy-real-estate-ride-to-slow-down-in-2017-realtors-say

Canada’s crazy real estate ride to slow down in 2017, realtors say Home sales are expected to soar 6% by the end of the year, but 2017 is a different story, with sales barely eking out 0.2% gain

So not seeing a lot of property out there right now for sale which makes it difficult for buyers.
Less properties mean that there are going to be more circumstances where you are dealing with multiple offers and then everyone but one loses (for buyers).
Do not lose hope and do not go crazy with the fear that you will never find a place. Fifty thousand dollars over price is something people regret.
Buying the wrong property is another regret that a surprising number of people have gone through over the years.
Buy the home that works.
Take your time doing so.
Eventually the market WILL take a downturn in our area and those prices will shift downward. Never forget that.

So is the real estate market going to slow down? Yes.
It goes through seasons like everything else and while it has been booming along we are due for a slow down.
Not a decrease in prices, not really. But the price increase will stop or at least slow down and then.
Summer is that time, so by the end of June this should have occurred at least traditionally.
Last year summer was still busy but it did slow.
So if you are looking to buy keep your eyes open, some properties that are overpriced are already starting to come down a little.........
Sellers will have a slightly more complicated journey.

Yes. As the traditional bedroom communities of Toronto go up in price people are moving further and further away as housing prices have gone up and up.
I was born and raised in Grimsby and several of my friends parents worked in Toronto even then.
I can definitely see St Catharines and area (Niagara Falls may take a bit longer) becoming more popular.
From The Financial Post 16 May 2016:
http://business.financialpost.com/personal-finance/mortgages-real-estate/dont-look-now-toronto-homebuyers-niagara-falls-just-might-be-your-new-suburb

Don't look now Toronto homebuyers, Niagara Falls just might be your new suburb The Niagara region is becoming a bedroom community for Hamilton-Burlington, where prices have been soaring for the last couple of few years

So the Real Estate market is still hot.
We are seeing multiple offers it seems like everywhere. Property is selling for more than list price in the first 4 days.

Expect it to slow down soon.

http://www.rahb.ca/2016/05/re-sale-market-still-hot-in-april/

Re-Sale Market Still Hot in April :: REALTORS® Association of Hamilton-Burlington

For several years now I have been a squeaky wheel with clients. 'Make sure you understand the fine print before you sign that mortgage. Penalties can be nasty."
So I'm saying it now to everyone out there. Read the fine print on the mortgage! A lot of people out there do NOT keep that mortgage to term.
Also if you are thinking that rates are going up and will break and refinance just as they start up, be aware of those costs!

From The Financial Post
8 May 2016:
http://business.financialpost.com/personal-finance/mortgages-real-estate/do-you-really-want-to-break-that-mortgage-it-could-be-more-painful-than-you-think

Do you really want to break that mortgage? It could be more painful than you think Penalties for breaking your mortgage can be much stiffer than you imagine (try $150,000), so if you really have to make the break take these tips on cutting the fee

Do you really need to have an open house when you list your property for sale?
No. I do recommend holding a neighborhood open house to get the nosy neighbors out of the way. Like a tuesday night from 6-8 pm. That means they won't bother some realtor to book a showing because they want to see your home.
Open houses in a hot market are useless for clients.
They make much more sense when our market slows down in future.
http://www.cnbc.com/2016/04/21/do-you-really-need-to-have-an-open-house.html

Do you really need to have an open house? There's a great deal of competition among homebuyers these days. If you're a seller, do you need to have an open house at all?

If you can ignore the snow, the spring market is officially NOW going on! Hopefully those looking to list are ready so that upload button can be hit on their listing.
Buyers really need to be ready to roll out as Sellers are being cautious in the GTA (these days GTA includes down to Hamilton unfortunately).

The market is definitely getting hot now. Not a lot of listings are on the market and the buyers are starting to go out and put those offers in. House prices are going to go up and they won't be on the market for long.
just get those properties ready!

This is an okay article.
If property is so expensive in an area and you want to be a first time home buyer, buy what you can afford!
Why are people looking at their dream now?
I am afraid that for people purchasing that have good advice they would purchase something affordable as a first time home buyer. Say an apartment or maybe a town house.
Some people need to grow up or perhaps set more reasonable goals.
From The Financial Post, 15 March 2016:
http://business.financialpost.com/personal-finance/mortgages-real-estate/how-first-time-home-buyers-are-bridging-the-gulf-between-their-dreams-and-reality

How first-time home-buyers are bridging the gulf between their dreams and reality A 'starter house' in Toronto and Vancouver may now cost more than $1M, a price that has forced first-time buyers to get creative. Here's how 5 new homeowners did it

What not to do in the basement

So the Real Estate market is starting a bit slower this year (at least in the GTA).
Reality check. In January and February most people are not listing. We have a shortage of listings on the market right now for those people looking to purchase.
Housing prices have NOT come down at all.
All the signs indicate that when the spring market hits expect it to be fast and furious.
From The National Post
22 February 2016:
http://business.financialpost.com/personal-finance/mortgages-real-estate/torontos-red-hot-new-home-market-shows-some-signs-of-slowing-but-one-month-does-not-a-trend-make

Toronto's red-hot new-home market shows some signs of slowing, but 'one month does not a trend make' The average sale price of a new detached home was down by 1% to $985,899 in January and sales were 10% below the long-term average for the month

Kitec plumbing is out there and is the current nasty BAD thing. Used between 1995 and 2007 it was supposed to be an easier to use product (and cheaper) than copper pipes.
It worked like a charm and was super easy to learn and use.
Unfortunately, if the water temperature goes too high or if the water pressure is too high then the plumbing starts to breaking down.
The joints can break down or the hoses themselves COULD give out.
When? Unknown.
Will the product break down eventually? Yes.
The more I have read about it the more I believe that this is worse than aluminum or k**b and tube wiring. Not as bad as asbestos.....
It will blow out eventually.
This article for info from The Star
6 March 2015:
http://www.thestar.com/life/homes/2015/03/06/kitec-plumbing-in-your-home-will-cost-you.html

Kitec plumbing in your home will cost you | Toronto Star Early pipe failure has sparked cross-border class-action lawsuit

I disagree with this article. It is not about real estate per se. But saving for retirement.
Save and be ready. Not everyone has a good pension. Too many people are funding their lifestyle through debt and may not be able to cover those costs when the economy takes a real hit or interest rates go up.
So my suggestion is to save and make sure you are okay.
Then buy those toys. Just don't debt finance them if you can help it.
From The Financial Post
29 January 2016:
http://business.financialpost.com/fp-comment/why-you-should-save-less-for-retirement-and-spend-your-money-now-seriously

Why you should save less for retirement, and spend your money now (seriously) Fred Vettese: Canadian pension plans are over-saving for their members’ retirements, assuming we’ll all spend more in retirement than we really will

This spring market is going to be HOT! This is only February and I am already talking to different home owners regarding selling and what has to be done for them to list end of March.

Buyers are starting to look now as well so that they can purchase before the big rush starts.

Get ready everyone!

So housing prices are up.
North Hamilton if you are close to the new station going in then prices have skyrocketed over the last year. Check out this attractive little bungalow that is just a few minutes slow walk to that same new station.
Priced for those Torontonians or others who want to use Hamilton as a bedroom community.
I just pulled this off of Realtor.ca quickly.
There is a lot of discussion about this property.
https://www.realtor.ca/Residential/Single-Family/16494890/384-BAY-Street-North-HAMILTON-Ontario-L8L1M7

384 BAY Street North , HAMILTON, Ontario L8L1M7 - H3173676 | Realtor.ca Property listing for 384 BAY Street North in HAMILTON, Ontario. Search for properties for sale and rent across Canada and in your neighbourhood.

This is an excellent article on debt and the sort of debts that Canadians have. The better kind like mortgage debt that builds assets.

If you hear the news and how they evaluate debt load then remember this article.

From The Financial Post
22 January 2016:
http://business.financialpost.com/personal-finance/debt/the-good-the-bad-and-the-ugly-of-canadian-household-debt-should-we-be-worried

The good, the bad and the ugly of Canadian household debt: Should we be worried? You might not know it by all the alarming headlines lately, but not all debt is bad. In fact, some debt can work for you just like a RRSP

With all the new home construction going on in Toronto is it hard to see how first time home buyers are driving the market?
With new home construction not closing for up to three years now that means the current market of available homes is going to be in high demand.

First time home buyers need to make sure that they know what they are getting into and be ready when it comes time to buy.

From The Financial Post
18 January 2016:
http://business.financialpost.com/personal-finance/mortgages-real-estate/first-time-buyers-driving-torontos-hot-housing-market

First-time buyers driving Toronto's hot housing market Based on a survey, about 53 per cent of buyers in the Greater Toronto Area in 2015 were first-time buyers and the Toronto Real Estate Board expects more of the same in 2016

My Real Estate Market Update for January 18th.

Spring market is going to be busy. Looking to sell? Take the time to get your home ready NOW.

https://youtu.be/L1WX7qcPqWU

Burlington Real Estate Update 18 January 2016 The Real Estate market for 2016 is going to be a hot one. Don't expect it to really take off until March at the earliest. Focus on getting ready for a hot sp...