June Property Update from Realtors Association of Hamilton-Burlington

June a good month for property sales; second quarter has increased average sale price

The June, 2011 real estate market in the Greater Hamilton, Burlington and their outlying areas* experienced an increase in listings, sales and average sale price compared to June of last year, according to Multiple Listing Service® (MLS®) statistics released today by the REALTORS® Association of Hamilton-Burlington (RAHB).

It was the freehold residential market that saw the larger gains over the same month last year, with a 5.4 per cent increase in sales and a 7.2 per cent increase in average sale price. Second quarter results in the residential market show a 3.9 per cent decrease in sales from the same quarter last year, but a 4.6 per cent increase in average sale price.

"This year’s second quarter was decent but couldn’t quite measure up to the results we saw in the second quarter last year," said RAHB President Ann Forbes Arndt. "If you remember, last year had a strong second quarter as buyers were trying to purchase ahead of the implementation of the HST. The number of sales we saw in the second quarter of this year was only 2.6 per cent lower than the ten-year average."

Overall year to date, residential sales are six per cent lower than in the same period last year.

"Every community in our marketing area has their own localized residential market with larger swings than we see in the overall numbers," said Arndt. Hamilton West saw a 27.2 per cent decrease in sales from the same month last year, while Waterdown had a 39.3 per cent increase in the number of sales. Hamilton East and Flamborough also saw significant increases in number of sales.

 

*RAHB’s jurisdiction includes Burlington, Waterdown, Flamborough and Dundas in the north; Hamilton, Ancaster, Stoney Creek, and Grimsby along Lake Ontario; and extends down to the shores of Lake Erie, including Glanbrook, West Lincoln, Smithville, Dunnville, Cayuga, Caledonia, and Hagersville.  Established in 1921, the REALTORS® Association of Hamilton-Burlington (RAHB) represents more than 2,500 real estate brokers and sales representatives from Hamilton, Burlington, and outlying areas. Members of the association may use the REALTOR® trademark, which identifies them as real estate professionals who subscribe to a strict code of ethics. The association operates the local Multiple Listing Service® (MLS®) and provides ongoing professional education courses for its members. In addition, RAHB is an active participant in the Home Ownership Affordability Partnership (HOAP) and holds an annual auction in support of local charities. Advertisements of local MLS® property listings and information about the services provided by a REALTOR® can be found at www.REALTOR.ca. More information about RAHB is available at www.rahb.ca.

Hamilton Centre was the only area with a sizeable decrease in average sale price from last year, coming in at 12.6 per cent lower than June of last year. Hamilton West, Grimsby and Glanbrook had the largest gains in average sale price over the same month last year.

Boomers Ready to Downsize

For their next move, Canadian boomers are looking to downsize to smaller homes. According to the TD Canada Trust Boomer Buyers Report, four-in-five Canadian boomers say their next move will be to a smaller home, either to save money (46 per cent) or to enjoy more luxurious features (34 per cent).

Three-quarters of boomers say it is important that they pay off their mortgage before they retire, but less than half (44 per cent) have paid off their entire mortgage. Of those boomers with a mortgage, one-third have paid off more than 60 per cent, but one-quarter have a long way to go, having paid off less than 25 per cent of their mortgage.

For their next home, the majority of boomers (61 per cent) plan to purchase a detached house. Although condos come in as second choice at 24 per cent, more than half say they are at least considering a condo because they involve less maintenance and offer better security and amenities such as a gym or pool. The top reasons that most boomers prefer houses over condos are that they prefer to have a backyard and garden and don’t want to pay condo fees.

However, some boomers say they will stay put. Forty-nine per cent will not move, either because they want to avoid the hassle of moving, because their house is already the right size for them or they like having extra rooms for guests to visit, says the report.

Nine per cent of boomers currently own a vacation property and a further 12 per cent plan to buy one for their retirement.

More than a third of boomers surveyed are considering buying a property south of the border. One-quarter say opportunities created by the depressed real estate market have sparked their interest, while another 12 per cent were already considering real estate opportunities in the United States. The most important criteria for buying a vacation property include location, price, low maintenance, and the ability to have friends/family visit.

Results for the report were collected through a custom online survey conducted by Environics Research Group.  Information provided by http://www.remonline.com/ 

May Real Estate Association of Burlington-Hamilton (RAHB) - Update

Condominium Average Sale Price Up

(Jun 3, 2011 – Hamilton, Ontario)  The May residential real estate market in Burlington saw an 8.8 per cent increase in average sale price from the same month last year, according to Multiple Listing Service® (MLS®) statistics released today by the REALTORS® Association of Hamilton-Burlington (RAHB).

While average sale price rose, there was a decrease in the number of listings and sales for the month.

“The numbers may show decreases in listings and sales to last year,” said RAHB President Ann Forbes Arndt, “but when you look at the figures for the last ten years, both are still above average for the month.  We had some strong months at the beginning of last year against which we are making comparisons, and we have to keep the bigger picture in mind.”

The numbers for May:

Residential Only                  2010                      2011                   % change               10-year average

Listings	456	451	-1.1%	425
Sales	394	366	-7.3%	358
Average Sale Price	$387,901	$422,110	+8.8%	N/A

Freehold Only

Sales	266	251	-5.6	240
Average Sale Price	$447,918	$482,752	+7.8%	N/A

Condominium Only

Sales	128	115	-10.2	112
Average Sale Price	$263,177	$289,753	+10.1	N/A

The condominium market saw the larger drop in number of sales but also the larger increase in average sale price.  “This is the same picture as we have overall for the Greater Hamilton-Burlington and outlying areas,” added Arndt.  “It is the condominium market that has seen the greatest decrease in sales but yet the highest increase in average sale price.”

Information provided by RAHB. More information about RAHB - Realtors Assocition of Hamilton-Burlington, is available at http://www.rahb.ca/

                                      

Buying or Selling. The Benefits of using a Realtor

Buying or selling your home is one of the most important decisions in your life. Before you do, be sure to consult a Realtor.  A Realtor’s experience can guide you through the process that can be more complicated than you think.

Their knowledge of the housing market can assist you in making the best possible choice. A real estate sales representative’s role is to serve the best interests of their clients.  They are uniquely qualified to serve your home ownership needs, and are extremely dedicated to you.

In Ontario, individuals must go through an intense education process developed by the Ontario Real Estate Association that includes licensing, a two year articling period with an experienced broker, and attending mandatory courses every year to maintain their registration and keep up with the changes in the industry.

“Realtors” are licensed professionals, that must be part of the local real estate board (Realtors Association of Hamilton & Burlington or RAHB here in the Burlington), as well as the Canadian Real Estate Association (CREA), and the Ontario Real Estate Association (OREA).  While working with a realtor, the national code of ethics and strict provincial laws ensure that you will be provided with a high level of service, integrity and honesty during your interaction. 

With intimate knowledge of the real estate market and legal terminology, a Realtor offers more than just training and high standards; they know how to best sell your home.   They can develop a marketing plan that includes various advertising methods, open houses, and listing your property.  They screen buyers to ensure that they are bringing buyers that have been qualified and are truly interested in the home.  The Realtor acts as a mediator during price negotiations between you and the other party to reduce stress during the sometimes difficult process.

Another valuable aspect of the Realtor relationship is the network of lenders, lawyers, mortgage brokers, home stagers and other professionals that can assist you in completing your real estate transaction.

A Realtor who holds themselves to high level of standards, ongoing training and top-notch customer service, ensures they are providing their clients with the service they deserve.  Before you take that big step of buying or selling your home, enlist the services of a Realtor. 

The Importance of a Home Inspection

You've found a house that you love. It has gleaming hardwood floors, the kitchen of your dreams, and a great backyard. But before you buy, what about the furnace, the wiring, the leaks in the basement? 

Before you buy any house, have the home inspected, no matter how experienced you are as a homeowner. It's the best way to make sure you really know what you’re getting into.

The inspector will determine the condition of the house you’re thinking about buying, and let you know if there are any problems. This will give you the information you need to make an informed decision. (And the great thing is, the inspector doesn’t care if you buy the house or not, so you can be sure he or she is being objective, even if you’re not.) If you have to make an offer before having a home inspection, make the offer is conditional on a satisfactory home inspection. If there are any problems, you have three options:

1. Walk away.
2. Use the results to negotiate a better price.
3. Give the seller a chance to fix the problem.

What happens during a home inspection?

The inspector meets you at the home you’re thinking of buying, and takes about 3-4 hours to carefully inspect the entire house for structural, mechanical or other issues. They examine everything from the roof to the foundation and everything in between, including heating and air conditioning, plumbing, electrical, insulation, roof, windows and doors, walls, ceilings, attic and basement. You can accompany the inspector as he or she goes through the home – it’s a good way to get to know the home quickly, and will give you a head-start in learning about the home. 

The inspector prepares an inspection report that breaks down the major repairs that need to be done right away and areas that will need attention in the future, (with accurate cost estimates).  They will also highlight good points, and give you an idea of what maintenance you’ll need to do. Make sure you ask for a detailed report that’s written in a narrative style. Never accept a verbal report or one that’s just a checklist.

How much does it cost?

Most inspections cost between $250 and $500. A few hundred bucks could save you thousands in home repairs. It’s a pretty small price to pay for significant peace of mind.

How do I find a good inspector?

Look for a reputable, qualified company that has been in business for a minimum a few years and that can provide references, is fully insured and offers guaranteed inspections. Inspectors should be licensed in building-related fields such as contracting, architecture or structural engineering. Your REALTOR® can recommend a reputable home inspector at your request.

When you’ve fallen in love with a house, it’s hard to see any faults on your own. Make sure the decision is a good one, and get it inspected so you can be sure you stay in love – for years to come.