ByTheOwner.com’s programmers have created a great way to send your friends and family your gift wist list this Holiday Season. This tools is a great way to avoid getting another Chia Pet or bad sweater!
Simply go to www.yourgiftlist.ca
Happy Holidays from ByTheOwner.com
Here is a funny story about a dog house being built in England. The dog house costs $475,000!
http://www.theglobeandmail.com/servlet/story/RTGAM.20081205.reMays1205/REStory/RealEstate/home
Do you think the dogs had to put 5% down? HA!
As we come to the end of 2008, we start to see many different organizations make predictions about the future of the Canadian Real Estate Market and where it might be going in the near future. Here are some of the recent predictions:
CIBC Economist: According to a recent Globe and Mail Article (Link here), CIBC Economist Benjamin Tal, expects “the average house price to fall by another 10 per cent over the next 12 months, and to remain relatively stable after that.”
RBC Economist: The Royal Bank published at report (Link here) that says, ” While the Canadian housing sector is undoubtedly entering a cyclical downturn, the risk of experiencing a U.S.-style meltdown is remote.”
Canadian Real Estate Association: Crea is forecasting that home sales in Canada will drop by 3% in 2009. (Link here) However, in 2007, CREA predicted that real estate sales would decline by 1.5% in 2008 and the decline ended up being more than 12%.
ByTheOwner.com: Real estate agents’ sales dropped by 12% in 2008 and ByTheOwner.com’s sales increased by 20%, so it seems that we have a different view of the real estate market. Our customers are able to offer the best price and still save, so we predict that our sales will increase in 2009, just as they did in 2008.
But what about the overall picture? I think it is safe to assume that housing prices will decline (too much supply, job losses, tougher mortgage rules). However, when housing prices start to decline, many very interesting things happen. First of all sales immediately decrease sharply. This is because it often takes consumers time to realize that they cannot sell their home for a high price. Most people avoid reducing their price and decide to wait. The homes that do sell are the ones with the best price. Also when prices start to decline, anyone who purchased a home in the last two years begins to realize that they cannot sell their home for a profit.
Lets examine the past: The graphs below show what happened in the Greater Toronto area in the last housing decline. We can see that the beginning of the slow down is where sales dropped dramatically from 50K in 1988 to 26K in 1990. Once that happened, prices decreases from their peak of $274K in 1989 until the low point of $198K in 1996 (6 years later). We are seeing the same pattern in 2007 and 2008. Sales start to rapidly decrease and prices drop as well, but not at the same pace.
Of course, aside from having a time machine, it is very hard to accurately predict the future of the real estate market, but what we do know is that selling privately is your best choice in any market. No matter what the market conditions, there is no replacement for saving 5% of your homes’ value by selling it yourself. $10,000, $15,000, $20,000 is a lot of money to save regardless if the market is up or down.
The Globe and Mail recently published an article that shows how the decreasing economic conditions are good for some people. For example, even though home prices have decreased, it has created an opportunity for many buyers.
Anyone looking to move up will be saving money despite the drop in housing prices. For example, if all housing prices have dropped 10%, then a young couple selling their $300,000 home and buying a $450,000 home will be further ahead. The $300,000 home has dropped to $270,000 ($30,000 less), but the $450,000 home has dropped to $405,000 ($45,000 less). This couple will “gain” $15,000 by moving up! Of course this only works if they sell privately. If they use an agent to sell their $300,000 home with will lose that $15,000 in real estate commissions!
The recent drop in interest rates also provides more incentive for buyers to purchase their next home. Mortgage rates are 22% less than they were on January 1st.
It looks like things are lining up for a healthy real estate market in 2009. ByTheOwner.com’s customers keep selling. Check our our testimonials from November and December!
Here is a link to the Globe and Mail article: http://www.theglobeandmail.com/servlet/story/RTGAM.20081210.weconomy10/BNStory/National/home
Here is some more housing economic data coming from the Toronto Star:
http://www.yourhome.ca/homes/article/552532
New reports from the CMHC and the Bank of Canada show that “A severe economic downturn could result in a substantial increase in default rates on household debt,” the bank said in its December review. “Household indebtedness could act as a channel of contagion spreading losses through the Canadian financial system and cause a further tightening of credit conditions.”
In spite of this news, ByTheOwner.com customers are selling and saving! The key is price! ByTheOwner.com recently launched our premium plus package in London, Kitchener and Hamilton (the package is already available in Barrie and the GTA). This week we had two premium plus clients sell, 1 in Brampton and 1 in London. In this buyers market sellers must be priced very competitively
and they must have enough information to set their expectations and price.
We are happy to be able to have partners that offer services which assist our customers in correctly pricing their home. In a buyer’s market, the best priced homes will sell. Selling privately allows our customers to price competitively and still save thousands in commissions!
Hi Everyone! As I shoveled my driveway last night only to wake up this morning to double the snow which I had just removed I thought to myself how does this effect home sellers and I came up with a few tips to help you.
1. Make sure that your sign is still visible.
2. If you celebrate a specific holiday don’t be afraid to show some effort in tastefully decorating your home as it shows pride of ownership. ex. tasteful white Christmas lights ad curb appeal at night.
3. Make sure your driveway, walkway, sidewalk and front step is cleared of all snow and ice.
4. Consider getting a winter mat for inside and outside your front door so potential visitors don’t track snow and salt into your home.
5. Have a your home set a couple degrees warmer than usual to appeal to potential buyers coming in from the cold. (make sure all fireplaces are turned on)
6. Open houses need to be scheduled in accordance with the weather.
7. Set your expectations, December is typically the slowest month for home sales as families put home buying plans on hold to concentrate on family traditions.
8. It’s ok to take a break for a week or two to enjoy your holiday and spend time with your family as doing so will help you get recharged and motivated for January.
If you consider these few minor tips you can set your self up for success!
Happy Holidays
Randall
ByTheOwner.com is proud to receive the 2008 BEST WEB SITE award from the Waterloo Region Home Builders’ Association. It is an honour and a privilage to receive this award of distinction. On behalf of all our programmers, employees, and representatives, we would like to thank the Waterloo Region Home Builders’ Association for this award.
To see the list of the other award winner’s please click on the link below:
2008 Waterloo Region Home Builder’s Association Awards of Distinction
As written in The Toronto Star, the new real estate reality has reached the Greater Toronto Market. Prices are starting to fall as more and more homes are left unsold. Here is an article about real estate agents who are telling “their clients that they have to reduce their price if they want to sell their property”.
While no one likes to find out that the home they bought last year is now worth less than they paid, unfortunately that is the new reality. In October of 2007, the average house price in Toronto was $394,646 and in October of 2008, the average house price was $352,974. (Although this number is skewed by the fact that more lower end homes are selling compared to more expensive homes).
In this Toronto Star Article there is a good quote offering advice from a real estate agent. The agent points out that “The last home sold in the neighbourhood sets the precedent for future sales, and if there is a downward trend, it is best to be the first one out”. That’s good advice, but how do you sell without lowering your price and paying commissions?
ByTheOwner.com is the solution!
There are less buyers looking for a home these days and there are more homes for sale. Which ones will sell? Simple: The homes with the best price! Selling privately lets you drop your price and still save money. For example:
If the best priced home in your neighbourhood is asking $300,000 with an agent, that means the owner will only keep approximately $284,250 after selling and paying commission. Now if you sell with ByTheOwner.com and ask $295,000 for the same home, which house will the buyer choose? Yours! Not only did the buyer choose your home, but he saved $5,000 and you saved $11,000 by not using a real estate agent.
This simple fact of not paying commission and saving money has allowed ByTheOwner.com’s sold homes to increase by 21% in 2008 while real estate agent sales have decreased 15-20%.
While we would all prefer to buy and sell homes in a hot market and see our values increase, this is not the current reality. But in this new reality, think about how much more a real estate agent is costing you. Don’t lower your price and pay commissions! Use ByTheOwner.com and save!
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