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Archive for September, 2009

Real estate recession over in Canada as prices recover

Wed, 30th September, 2009 - Posted by Sean Kavanagh - (0) Comment

House hunters still waiting for prices to drop further before buying may have sat on the sidelines too long, according to a new report.  A study released Thursday shows home values in some major markets across Canada have recovered to levels where they were before the recent market drop.  Economists agree and say the power has shifted to a seller’s market in recent months, after the buyer’s were in control for more than a year.

Low interest rates, pent-up demand, and improved affordability as a result of record low interest rates are behind the recovery.  This has resulted in buyers taking advantage of the low rates and jumping into the market place.  Buyers who have waited for the market to ‘bottom out’ have waited too long.  Housing prices have been on the rise and with a small inventory of available houses, sellers are getting close to their asking price, and in some markets, multiple offers are driving the prices over list price.

The market turn around can be attributed to the government’s new incentive programs, particularly for new home buyers.  Earlier this year, Ottawa increased the amount first-time home buyers can withdraw from their RRSPs from $20,000 to $25,000, and implemented a tax credit for first-timers of up to $750 to help cover closing costs. It also introduced new tax credits of up to $1,350 for home buyers who do renovations.

The lack of supply has also affected the upward turn in housing prices.  Sellers aren’t putting their homes on the market because they are anticipating prices to rise further.  Less inventory for buyers drives up demand, and in turn price.

Bank of Canada governor Mark Carney has issued a conditional commitment to keep the policy rate at the record low of 0.25 per cent until next summer, which means mortgage rates will likely remain at record lows for awhile longer.

A strong and stable market will bring more listings. An increase in listings and a levelling off in demand will bring us back to a balanced market over the next few months.  You can follow the trends more closely by following me on TWITTER, FACEBOOK or on my website, www.seansells.ca

Category : Market Updates

Let’s Murder Your Mortgage

Tue, 29th September, 2009 - Posted by Sean Kavanagh - (0) Comment

Have you ever thought about paying off your mortgage quicker?  Have you ever had some money you wanted to invest, but just didn’t know where to put your money?  Bumping up your mortgage payment can save you a fortune over the years ahead.

Consider our happy newlyweds Dick and Jane. They live in Burlington, Ontario in a three-bedroom, two-storey home. They owe $200,000 on their mortgage at 6.5 per cent. Right now, they are making monthly payments of $1,340 and are on track to pay off their house in 25 years. Based on their current schedule, they will wind up paying more than $200,000 in interest over the life of their mortgage.  See what happens if Dick and Jane decided they wanted to pay off their mortgage a little quicker.

1st scenario: If Dick and Jane simply increase their monthly mortgage payment by $180 to $1,520 a month, they can pay off their mortgage in 19 years and save $53,510 in interest costs.

2nd scenario: If Dick and Jane split their current monthly payment in two and pay every two weeks instead of monthly, they increase their total mortgage payments from $16,075 a year to $17,415 a year. That means they pay off their mortgage in 21 years instead of 25 years, and save nearly $40,000 in interest costs.

3rd scenario: If Dick and Jane keep making their current monthly payment, but add an additional payment of $7,000 once a year, they pay off their mortgage in 13 years and save $107,000 in interest.

In most cases, homeowners can arrange to take advantage of any of these options simply by calling their bank. But whatever strategy Dick and Jane choose, they should resist the temptation to choose banks’ latest mortgage “deal,” which consists of the ability to skip a payment once a year. While that may seem enticing, such a strategy would stretch out Dick and Jane’s mortgage payments to almost 31 years. They would pay a whopping $263,000 in interest costs over the life of their mortgage, or $61,000 more than if they had stuck with the original 25-year monthly payment schedule.

For more help on how to pay off your mortgage quicker, please contact me today so we can chat about saving thousands of dollars in interest by adding a few dollars per month to your mortgage payments.

Category : Mortgage

September Real Estate Sales Stats

Mon, 28th September, 2009 - Posted by Sean Kavanagh - (0) Comment

Real estate statistics for September prove we continue heading in a positive direction.  All numbers from Toronto to Hamilton are up in both units sold and average sale prices. 

Toronto Real Estate Board – Units sold are up 27% and average prices are up 6%.

Hamilton/Burlington Board – Units sold are up 16% and average prices up 2.7%

Oakville/Milton Board – Units sold are up 21% and average prices are up 3%

Burlington Market – Units sold are up 13% and average prices are up 5%

Oakville Market – Units sold are up 35% and average prices are up 14%

Milton Market – Units sold are up 11% and average prices are up 13%

Remember!  It is important for you to look at your specific neighbourhood to see how your local market is moving.  For more information, Click Here.  For a complete and detailed report on real estate stats in your neighbourhood, please send me a brief message letting me know the neighbourhood in which you live and I will be sure to get you a report sent out right away!

For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seansells.ca, or at www.seankavanagh.ca   I’d be happy to answer any questions to accommodate all of your real estate needs.  Follow me on TWITTER or FACEBOOK!  You can also contact me at 905-220-9198 or at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.

I look forward to hearing from you!

Sean Kavanagh

Building Lasting Relationships and Exceeding Expectations

Category : Market Updates

www.century21.ca Canada’s leading real estate website

Sun, 27th September, 2009 - Posted by Sean Kavanagh - (0) Comment

With over 95% of people beginning their real estate search online, shouldn’t the brokerage you choose to sell your home give you maximum internet exposure? 

Numbers were recently released at the CENTURY 21 Canada conference in Vancouver that revealed www.century21.ca is now the leading real estate brand web site in Canada, oustripping both the REMAX and Royal Lepage brand web sites, based on number of unique visitors. The CENTURY 21 Canada web site is now second only to the Canadian Real Estate Association’s www.realtor.ca site.  CENTURY 21 Canada CEO Don Lawby praised the members of the CENTURY 21 Canada system for their continued support and enthusiasm in building and growing the site, and attributed its phenomenal success to the fact that www.century21.ca delivers the kind of online experience that today’s buyers and sellers want and expect.

Internet exposure is what will sell your home in today’s marketplace.  Century 21 has the greatest internet exposure.  Why would you look anywhere else?  Not only will you receive maximum internet exposure when you list with me, you will also receive your home staging for free.  Maximum exposure coupled with free home staging gives you the greatest opportunity to sell your home quickly for maximum profit.  I’m just a phone call, email or website click away!

I can’t wait to meet you and get your home sold.

Sean Kavanagh

Category : Buyers / Market Updates / Sellers

Mortgage Rate Update

Thu, 10th September, 2009 - Posted by Sean Kavanagh - (0) Comment

Mortgage rates have eased slightly for both the fixed rates & the variable rate mortgages.

The 5 year fixed rate has finally come back down below 4% to 3.99%.  The variable has also moved down to prime (2.25%) plus .15% on a 3 year term & prime plus .20% on a 5 year term.  The variable seems to be the way to go, as the economists are now predicting that the Bank of Canada rate will not move until 2011.  Even though, the recession is over, they are saying that the recovery will be slow and gradual which will not stimulate inflation.

The economists are also predicting that it will be well beyond 3 years before the bank prime hits 4%.

Bryan Guertin of Mortgage Intelligence in Oakvile recommends that clients take advantage of the variable mortgage, but increase their payments to where it would be on a fixed rate of 4%.  This way they will make a huge dent in their first 3 years.  Bryan has also put together a recent bulletin from CMHC showing their market research and an explanation of how the market rebounded so quickly.  For a copy of this report, please send me an email and I would be happy to share it with you.

For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seansells.ca, or at www.seankavanagh.ca   I’d be happy to answer any questions to accommodate all of your real estate needs.  Follow me on TWITTER or FACEBOOK!  You can also contact me at 905-220-9198 or at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.

I look forward to hearing from you!

Sean Kavanagh

Building Lasting Relationships and Exceeding Expectations

Category : Mortgage

Mortgage Rate Update

Wed, 9th September, 2009 - Posted by Sean Kavanagh - (0) Comment

Mortgage rates have eased slightly for both the fixed rates & the variable rate mortgages.

The 5 year fixed rate has finally come back down below 4% to 3.99%.  The variable has also moved down to prime (2.25%) plus .15% on a 3 year term & prime plus .20% on a 5 year term.  The variable seems to be the way to go, as the economists are now predicting that the Bank of Canada rate will not move until 2011.  Even though, the recession is over, they are saying that the recovery will be slow and gradual which will not stimulate inflation.

The economists are also predicting that it will be well beyond 3 years before the bank prime hits 4%.

Bryan Guertin of Mortgage Intelligence in Oakvile recommends that clients take advantage of the variable mortgage, but increase their payments to where it would be on a fixed rate of 4%.  This way they will make a huge dent in their first 3 years.  Bryan has also put together a recent bulletin from CMHC showing their market research and an explanation of how the market rebounded so quickly.  For a copy of this report, please send me an email and I would be happy to share it with you.

For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit the Sean Kavanagh Real Estate Resource Centre at www.seansells.ca, or at www.seankavanagh.ca   I’d be happy to answer any questions to accommodate all of your real estate needs.  Follow me on TWITTER or FACEBOOK!  You can also contact me at 905-220-9198 or at www.realestatechat.ca as I am now a moderator on the Ontario Real Estate chat forum as well as the Burlington, Ontario sub-forum.

I look forward to hearing from you!

Sean Kavanagh

Building Lasting Relationships and Exceeding Expectations

Category : Mortgage
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