2012 saw end to four years of weaker sales activity

There is nothing more stressful than selling your house, especially selling in the Winter when the roads are slippery, views are blanketed in snow and trees are bare. But not everyone can wait until the spring market when a flurry of homes bombard the market!  For this same reason, this is one advantage of selling in the colder months of the year!

Buyers looking for a property at this time are more serious and tend not to waste time sitting on the fence. They will only view the houses they are serious about.  After all, who wants to spend their days driving around on slippery roads, getting in and out of the cold, removing dirty footwear and bulky jackets?  So if your property is one of the lucky ones that have a showing scheduled, be sure it is up to par. 

Here are some tips to help you sell your house this winter:

1. Clear snow and ice from driveway and walkways around your home - This is the top tip from agents.  This makes the prospective buyers feel comfortable when walking into your property.  It also shows the house is well cared for and maintained, both interior AND exterior. 

2. Make it warm and cozy - It's cold outside.  Make the entrance to your home an inviting one by placing candles near the entrance, maybe a nice wreath on the door and turn up the heat.  Have a mat setup for buyers to place their dirty shoes and then walk onto a nice clean surface.  If you are leaving for the showing and coming back right after, turn on the fireplace for them and have some warm cookies and maybe a hot chocolate dispenser to warm them up during their tour of your home.  This will make them feel more at home and comfortable - something they will never forget!

3. Take advantage of glows from lamp - There is something warm and inviting about looking at a property from a distance in the winter and seeing the yellow glow of a lamp shining through the window.  The yellow glow offers a cozy ambiance that is both calming and warm.  So make sure you keep all those lamps on for the showing.

4. Play soft music in the background - Create an atmosphere by playing soothing classical music or Christmas music very quietly in the background.

5. Make it festive - Greet potential buyers with holiday flowers, scents and set the table for an elegant dinner.  But don't go overboard with the decorations - you don't want it to look tacky!

6. Consider the area - In some areas of the city, winter weather can actually be a selling point! If you live near COP for example, make note of the fact that you are just minutes from skiing at COP or approximately an hour to Banff and Sunshine.

Please feel free to contact me anytime if you have any questions.

By Mona Kapoor

Are you planning a home renovation? Chances are your neighbor is, according to a recent survey by Houzz.com. In the next two years, 72 per cent of Canadian homeowners surveyed are planning to decorate or redecorate, 40 per cent are building an addition or remodeling, and another 11 per cent are planning to have a custom home built.

What Do Kitchen & Bath Renovations Cost?

What are Canadian homeowners spending to improve their kitchens and bathrooms? Nationally, Canadians are spending an average of $23,300 Canadian to upgrade their kitchen cabinets, appliances and workspace. Bathrooms are smaller investments, with Canadians investing an average of $9,100 to remodel everything from plumbing fixtures to tile and lighting. Americans are spending an average of $27,000 U.S. on kitchens, and $11,300 on bathrooms.

These averages however don't reflect the regional diversity when it comes to these projects. Calgary residents are investing the most in their kitchens, spending an average of $32,200, while Vancouver homeowners are spending $22,200, almost $10,000 less and slightly below average. Spending outside of major metropolitan areas average $19,500. Montreal homeowners are the biggest spenders on bathrooms, investing $11,500 on average, and Toronto is close behind at $10,500. While big spenders on kitchens, Calgary homeowners are spending the least on their bathrooms, averaging $7,500.

The survey also found that remodeling kitchens and bathrooms are top priority for Canadian homeowners, and also for their American counterparts. In the next two years, 50 per cent of Canadian homeowners on Houzz are planning to remodel their bathrooms, and 48 per cent are renovating a kitchen. This compares favorably to the 33 per cent of homeowners surveyed who remodeled their kitchen in the last five years, and the 40 per cent who remodeled a bathroom.

But Canadian homeowners are approaching their projects differently than homeowners in the U.S.; not just what they spend but also how they get it done.

Popular Projects

While kitchen remodeling and bathroom remodeling are #1 and #2 on Canadian project lists, what other priorities are Canadians planning? In the next two years, Canadians are also planning to take on flooring (44 per cent), replacing windows and doors (32 per cent), living room/family room additions or remodels (31 per cent), and patios and landscapes (31 per cent). These priorities are similar to those in the U.S., though Americans are focusing significantly more on their patio and landscape projects than on living room/family room renovations.

Regionally, Calgary residents surveyed are planning more custom homes and additions, as compared to other Canadians surveyed. 17 per cent built a custom home in the last five years, vs. 12 per cent for all Canadian homeowners on Houzz, and 49 per cent built an addition. 59 per cent of Calgary residents are planning a custom home build or remodel/addition in the next two years, as compared with 46 per cent of homeowners surveyed in Montreal and Toronto

Hands-on or Hiring Help?

Canadian homeowners on Houzz like to take a hands-on approach to their projects, and at a significantly higher rate than their U.S. counterparts. In fact, 76 per cent of Canadian respondents report doing some or all of the work themselves. They do however recognize when they need professional help. In the last five years, 61 per cent of respondents report hiring a general contractor, 50 per cent a carpet or flooring professional, 30 per cent a kitchen and bath professional, 24 percent an interior designer, 21 per cent a landscape professional, and 18 per cent and architect.

Regionally, Montreal residents surveyed are more likely than other Canadians to hire help for their projects, and to go over budget. They are also more likely to hire an architect than other Canadians. Edmonton residents by contrast are the least likely to hire an architect. Fifty-seven per cent of Montreal residents reported going over budget on their most recent remodeling project, a significantly larger group than the 44 per cent average for all Canadian respondents.

New Motivations & Financing Approaches

Most surprising among the survey findings are the motivations behind these projects. Even in the current economy, Canadians are remodeling to please themselves, not the next owner. When asked what is important to them when taking on their next project, 83 per cent of Canadian Houzz users cited improving the look, feel, flow and layout of their home, while only 56 per cent cited home value. Increasing home value, while second priority, is still more important to Canadians than Americans surveyed, only 47 per cent of who cited return on investment as important.

Canadians are still taking a conservative fiscal approach to projects; when it comes to financing, Canadians as a whole are saying "no" to loans -- only 14 per cent are planning to take out a line of credit. But they aren't willing to wait to renovate; 60 per cent say they will cut back on vacations, car purchases or other big-ticket items rather than delay a remodeling project.

Read More: http://www.huffingtonpost.ca/liza-hausman/canada-renovation_b_1982130.html

The province of Ontario has gone from criticizing the oilsands to increasing its efforts to capture their economic benefits.

Brad Duguid, Ontario's minister for economic development, says he plans to increase his department's attention to Alberta by adding more staff to deal with trade issues.

"I think we have a recognition that our relationship could be stronger. I think that we want to now move forward with the knowledge that the oilsands are important to Ontario's economy," Duguid told The Canadian Press on Wednesday.

He said he understands the value of the oilsands to Ontario business and estimated that value at $63 billion over the next 25 years.

"It may be a time for Ontario to increase our presence in the province of Alberta in terms of our business supports here," he said from Calgary. "We may want to look at having some more presence here in terms of staffing."

The Ontario government doesn't currently have an office in Alberta. A bureaucrat at the Ontario legislature spends part of his time dealing with Alberta files.

"The intent is move that to a full-time contact so that we've got more of a personal contact here — a good liaison between the business community in Ontario and Alberta."

A spokeswoman for Duguid's office later clarified the Ontario government is looking at many ways to boost its profile in Alberta, which may or may not include opening an actual office in the province.

Duguid said it's time to help businesses in his province that are looking for oilpatch opportunities and Alberta companies that are looking for skilled labour.

"There's a recognition that that's important to Ontario's economy and it makes sense to look at ways we can work closer together, both in providing opportunities for our respective businesses and at the same to work together as governments," Duguid said.

Ontario Premier Dalton McGuinty said earlier this year that the booming energy sector was driving up the Canadian dollar and hurting the manufacturing and export sectors in Central Canada.

Federal NDP Leader Tom Mulcair has made similar comments. He has said the oilsands are artificially inflating the Canadian dollar and hollowing out the country's manufacturing sector. He calls it the definition of Dutch disease — a reference to the Netherlands and how a natural gas find in that country led to declines in manufacturing in the 1960s.

Duguid said his government wants to move past that debate.

"We're aware that there was a lot said about those comments. We just want to move forward."

Stronger links between Canada's largest provincial economy and its fastest-growing one would be good for the whole country, said Duguid.

Source: http://www.cbc.ca/news/canada/toronto/story/2012/10/10/ontario-alberta-trade.html

Homeowners who are planning to move up often wrestle with the dilemma: "Should we sell first or buy first?" You'll find plenty of agents advising you to buy before you sell, but that's rarely in your best interest. It's in the agent's best interest because if you buy, you will need to sell, and the agent will be guaranteed two sales, regardless of how much it cost you to do it this way.

If you decide to sell first and then buy but, say, your home doesn't sell or it attracts very low offers that you do not want to accept, the agent will get nothing. Think about it.

Of course, which comes first, the chicken or the egg, depends on the market -- is it a buyer's or a seller's market -- and your personal motivation. However, for most sellers and buyers, the smart thing to do is to sell before you buy.

Reasons to Sell First and Then Buy

• Ability to Negotiate.

  By selling first, you have the luxury of time. You don't have to take the first offer that comes along because you already have a place to live. It's called your home.

• Higher Sales Price.

  Sellers who aren't under pressure to sell often obtain higher sales prices because buyers realize the sellers are not desperate. Nothing yells "discount your offer" like a listing that reads: "seller motivated, bought another."

• Contingent on Concurrent Closing.

  By making the sale of your home contingent on closing concurrently with your new purchase, you have basically said to the buyer, "If I can't find the home I want to buy, I'm under no obligation to sell to you." You don't have to name the property address. You can simply state: "This sale contingent on closing concurrently with the purchase of seller's replacement home."

  In fairness, a smart buyer's agent won't let a buyer sign a contract with a contingency clause like that; however, I get away with inserting that clause because few agents understand its implication.

• Contingency Period.

  OK, let's say the buyer's agent is smart enough to strike a concurrent closing clause from the contract. The next best thing to ask for is a time period during which you are free to look for a replacement home. A contingency period will give you the right to cancel the contract during that time period if you so choose, which can range, on average, from 7 to 21 days.

• Renting After Closing.

  Some sellers who want to take their time to find the perfect home, that one-in-a-million, will often opt to rent after closing. If the buyer doesn't require immediate occupancy, the seller might rent back their own home for the amount of the buyer's new mortgage payment. Or the seller might move out, put their belongings into storage and rent a furnished, short-term apartment.

Reasons to Buy First and Then Sell

• It's a Seller's Market.

  When the number of buyers are many and inventory is reduced, homes generally sell within days of hitting the market. In this instance, there is little risk in buying first and selling second. However, few sellers will accept a contingent offer. Since these sellers will not accept a sale-contingent offer, you could be stuck owning two residences until your home sells. On top of that, you will pay top dollar for your new home, especially if you end up bidding in a multiple offer situation.

• Deal is Too Good to Wait.

  Sometimes, regardless of the marketplace, a home will come on the market at a price that is too good to pass up. Perhaps the sellers are getting divorced, need to pay medical bills or one of them has a gambling addiction with debts to pay; the point is the sellers are extremely motivated to sell. Before word spreads across town, you might want to be the first offer on the table.

  In this instance, it makes sense to buy before you sell because the money you make walking into the deal is worth making double payments until your home sells. When the deal is that good, pull out all your negotiating tricks.

• It's Your Dream Home.

  This is an emotional decision. As much as many buyers might want to be logical and analytical, people who let their hearts rule are not. Real estate is an emotional business anyway, so those who fixate on owning a certain type of home may as well buy it when they first spot it. For some, money is no object. Fortunately, these types of buyers rarely look back, but keep their sights set on the horizon, on moving forward, and they don't regret making emotional decisions. They want what they want, and they get what they want.

Whatever you decide, please contact me first!  I can help you decide what is best for your situation!

Could Canada could slip into the same traps that hurt the U.S. economy in 2008-09? Some are sounding the alarm bells – at least on the housing front.

Clearly, Ottawa is worried about the debt levels being carried by the average household. Witness Finance Minister Jim Flaherty’s recent announcement that he was changing the maximum amortization on a government-backed mortgage to 25 years from 30 years.

The announcement was greeted with mixed reviews, including loud criticism from those who worry younger generations will have a significantly harder time being able to afford first homes.

But reducing the limit for mortgage amortization is not only good public policy – cooling the speculative real-estate sector without killing the home-construction industry – it is good for homeowners in general. Here’s why.

U.S. banks and lending institutions took part in two inappropriate activities in the U.S. housing and mortgage market prior to 2008, both passively allowed by the government in the hope of assisting low-income Americans to own their own homes.

First, banks were offering mortgages with low introductory interest rates that would later (one to three years later) rise to higher ultimate rates. Second, banks were offering mortgages at very high ratios to the value of the house (even up to 100 per cent). This was all fine – for both banks and home owners – so long as incomes and house values rose.

It all came to a thunderous halt in 2008.

As homeowners’ mortgages with low introductory rates came up for renewal, many could not afford the new higher payments that went along with the higher ultimate rates. Americans had to walk away from their loans, and therefore, from their homes – in droves.

At the same time, for those who had leveraged a very high percentage of their home value in their mortgage, the falling house prices meant that they now had a mortgage with an outstanding value that was larger than the value of the house. So, they too, simply walked away, handing the keys to their homes to the lending institutions.

This all snowballed into the exponential fall in American home values in 2008-09, and the accompanying loss in value of the mortgage assets held by the lending institutions – a very important piece of the global financial crisis.

In Canada, we are fortunate that our successive governments have always forced higher down payments for homes here than those required in the U.S. With the new limits on the amortization period, our government wants to dodge the American crisis. This is prudent, and safeguards the economy in general. But the new limits are also good for the individual home owner.

Let’s do some arithmetic. Consider a $100,000 mortgage. (Most mortgages are much larger, but you can get to the answer to your personal situation easily by multiplying by the size of your mortgage.) I will assume today’s five-year mortgage rate of 5.24 per cent.

If you take out a mortgage to be paid off over 30 years, your monthly payment will be $548.10. Over 30 years, you will pay a total of $197,316, including $97,316 in interest. If, however, you choose the 25-year mortgage, your monthly payment is $595.34 ($47.24 more a month). Over 25 years, you will pay a total of $178,602 – $78,602 in interest, just 80 per cent of the interest you would pay on the 30-year mortgage. Further, you will own the house debt-free five years sooner.

If interest rates rise, the arithmetic becomes more dramatic.

Consider a $500,000 mortgage at 6 per cent. If you choose the 30-year mortgage, you pay $2,974.12 a month for 30 years, a total of $1,070,683, including $570,683 in interest. Using a 25-year mortgage requires monthly payments of $3,199.03 ($224.91 more a month) for a total payment of $959,709, including $459,709 in interest.

In other words, for an extra $7.39 a day, you can own your house five years sooner and pay a whopping $110, 974 less in interest.

If a home buyer cannot afford an extra $7.39 a day in mortgage payments, should they be in the market? Aren’t we all really better off with the shorter amortization period?

The bottom line: The impact of this new legislation is less pain than pragmatism. For once, we should be thankful to our big brother in Ottawa.

Source: http://www.theglobeandmail.com/commentary/good-for-homeowners-and-the-economy/article4415948/?cmpid=rss1

Source: http://www.ctv.ca/CTVNews/Canada/20110117/flaherty-mortgage-rules-110117/#ixzz1yXWV4Rkx

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