Steady growth expected for Canada's housing market in 2015

Steady growth expected for Canada's housing market in 2015 -

With the New Year having only just begun, the housing outlook for 2015 across the country is generally bright.

The average residential sale price in Canada in 2014 was $406,145; that’s expected to increase this year to $416,300, according to the Re/Max 2015 Housing Market Outlook Report.

The report also found that several markets will flourish in 2015. Prices in Vancouver and Toronto will continue to climb, by about 3 and 4 per cent per cent, respectively. Other areas that are expected to see healthy gains include Kelowna, B.C., (7 per cent), Victoria (4 per cent), Windsor, Ont., (5 per cent) and Moncton (6 per cent).

Meanwhile, in other parts of the country, the average sale price will likely remain stable or rise modestly, such as in Montreal (1 per cent), Quebec City (1.5 per cent), Ottawa (1.6 per cent), and Sudbury, Ont. (1.6 per cent).

If you’re a homeowner, or looking to get into the market, keep an eye on these factors in the year ahead.via Yahoo Finance Canada

Our RE/MAX report is here: http://download.remax.ca/PR/HMO2015/Report/Outlook2015Final.pdf #Canada #RealEstate

Get Pre-Approval to Lock in, or Wait? Read this guys story on Interest Rate

Meet the interest rate that really affects your life

Alex Thomas couldn’t have chosen a better time to lock into a five-year, fixed-rate mortgage. The Toronto-based public relations professional locked in a 3.39-per-cent rate for 120 days at the beginning of July. He bought a house in October, but if he had waited any longer, his monthly payments would likely have gone up.

Why? Because Canada’s long-term interest rates have been steadily climbing since June. When Mr. Thomas locked in, the 10-year Government of Canada Benchmark Bond – the rate that’s most closely tied to mortgage rates – was about 2.4 per cent. It has steadily been rising since then, hovering around 2.6 per cent.

“I’m glad we got preapproved,” he says. “By the time we got our mortgage, the rate had already gone up twice.”

When it comes to interest rates, most of the attention is on the Bank of Canada’s overnight rate, which governs short-term lending. But it’s long-term fixed income rates that have the most affect on people’s wealth. Rising five-year, 10-year and 30-year yields impact everything from mortgage rates to portfolio returns.

Unlike the overnight rate, which the Bank of Canada is responsible for moving, the long-term rates shift based on what’s happening around the world.

For most of last year and until late May, the 10-year Government of Canada bond rate was in the 1.6 per cent to 2 per cent range. Then, U.S. Federal Reserve chairman Ben Bernanke said that he might slow down the U.S. government’s quantitative easing program – it’s been buying $85-billion (U.S.) worth of its own bonds since last fall.

That announcement caused long-term bond rates to rise around the world.

“The Bank of Canada had nothing to do with that,” says Darcy Briggs, a portfolio manager with Franklin Templeton Investments. “These rates are greatly affected by events occurring outside of the bank’s control.”

For house hunters like Mr. Thomas, the most obvious impact of rising rates is higher fixed-mortgage costs, says Mr. Briggs. According to Ratehub.ca, in May Canadians could get a five-year fixed rate for 2.64 per cent. That rate is now closer to 3.4 per cent.

Variable mortgage rates are based on the overnight rate, explains Mr. Briggs, so those costs haven’t increased this year.

Rising rates have also had an impact on certain investments, but especially on bond values, says Allan Small, a senior investment adviser at HollisWealth. When yields rise, bond prices fall, he explains.

“If a bond issue today is paying 6 per cent and an old bond is paying 5 per cent, then who would want the bond that’s paying less?” he asks. “That lower-paying bond then gets sold at a discounted price.”

In June of 2012, the Government of Canada issued a 10-year bond for about $100. Because rates have risen, that bond is now worth about $90.

“People in retirement have flocked to bonds because they’re low-risk investments,” Mr. Small says. “But over the last couple of months, they see their portfolio down, even though the stock market is going up, and they’re wondering what’s going on.”

However, it’s not just falling bond prices that have affected wealth. Certain equities are affected by higher rates, too. Investors who hold real estate investment trusts and utilities will have noticed that returns have fallen.

These two sectors typically offer higher-than-average yields, which is attractive in a low interest-rate environment. When bond rates rise, though, the risk and return properties of these stocks become less attractive. It starts making more sense to own a more stable fixed-income instrument than an equity investment, Mr. Briggs says.

“At 1 per cent, that bond doesn’t look as attractive, but it gets better at 2 per cent,” he explains. “That makes the outlook for other investments not as bright.”

This doesn’t matter as much to investors who are solely in the market for income, says Mr. Small. Hold a bond to maturity and you’ll still get the same return as you would have when you originally purchased it.

If you want to sell a stock or bond, or want to see your portfolio rise, then you may be out of luck.

“If you’re concerned about the value of your portfolio, then you have to be mindful of the risk.”

To minimize the impact of rising rates, Mr. Small avoids bond funds, which don’t have a maturity date and often fall when rates rise. He buys the actual bond for clients because he’s able to hold the security to maturity and receive the full payout he was entitled to when he purchased the bond.

“I know at some point in the future, it will reach its maturity date, so I don’t care about the price,” he says.

Some investors may also want to pare back their exposure to real estate investment trusts, utilities and other interest-rate-sensitive stocks, Mr. Small says. If rates continue to rise, then these stocks could be hit again.

Instead, consider owning some bank stocks. Financial institutions also pay attractive yields, but they benefit from rising rates – higher rates allow them to make more off the dollars held in savings accounts.

For Mr. Thomas, the only affect rising rates would have had on him would have been on his mortgage. He doesn’t yet invest, but he’s planning to start. When he does, he says he will keep his eye on where rates are headed.

“I’m reading about what’s going on with rates,” he says. “That could impact where I put my money.”

Globe and Mail Special article posting

MARKET CAP COMPRESSION SQUEEZES INVESTORS

Really great tips by another Real Estate Investing Pro:

MARKET CAP COMPRESSION SQUEEZES INVESTORS

No doubt, some of you read the title of this article and thought ... huh?  "Market cap compression" is just a fancy term which merely states that prices for commercial real estate continue to rise.  The market cap has an inverse relationship to the price/value of a commercial property.  In essence, as the price/value of the property goes up, the market cap goes down or becomes "compressed".   In the past few years we've seen significant market cap compression in the commercial sector which is primarily a function of low interest rates coupled with no real alternatives to park investment dollars.  The question is, what does this mean for the average investor either looking to buy their first property or their fifth?

1. Look outside of major urban centres

I've always been a major advocate of investing outside of the major urban areas such as Toronto, Calgary and Vancouver.  As much as I would love to buy properties in those cities, the cap rates for multi-unit residential properties have reached historic lows and thus don't make economic sense for investors looking for cash flow.  Five percent market caps have now become the norm in Toronto.   I've even started to see caps as low as 3.5%.  With caps that low, your investment property is unlikely to cash flow.   Further, when the mortgage resets after the initial term, investors are opening themselves up to signficant risk if and when interest rates rise.

Why look to the smaller urban centres?  Because cap rates in the smaller urban areas tend to be a percentage point or two higher than their more densely packed counterparts.  That's not to say that all smaller areas are created equally.  Investors need to focus on the key metrics to find the right place to invest which includes GDP Growth, low unemployment, low vacancy rates, population growth, etc...  Smaller cities that investors should be looking in include, but is not limited to, Kitcher/Waterloo, Guelph, Cambridge, Hamilton, Durham region (Pickering, Ajax, Whitby, Oshawa) and Kingston.

2. Watch the bond markets

The bond markets are a critical metric and commercial investors  need to keep an eye on them as they are used to establish the ultimate cost of funds (mortgage rate).  Over the past 30 days, the Canadian bond markets have seen a significant increase in bond yields which will ultimately place upward pressure on commercial mortgage rates.  In the longer term, if the movement in bond yields proves to be a trend and not just a blip, market cap compression will begin to reverse as cap rates have a close correlation to the cost of funds.  Investors need to be weary in the short term that they aren't buying commercial properties today based on the recent trend of extremely low cap rates and getting financed at the new higher mortgage rates.

3. Lock into longer terms

With mortgage rates at historic lows, even with the recent run in the bond market, locking into longer term rates such as 5 and 10 year terms will make economic sense for most long term investors.  This type of certainty allows for predictable cash flow and signficant mortgage paydown during your mortgage term.  More importantly, it significantly mitigates the risk of rising interest rates.  

4. Ensure you have a healthy spread

The key to profitable investing is to ensure that you have a healthy spread (the spread is the difference between the market cap and your cost of funds).  Market cap compression in the larger cities such as Toronto have all but squeezed the spread in most cases to zero.  To illustrate this point, the average 12-plex in Toronto has a cap rate of approx. 5%.  The cost of funds for this type of property are typically between 4-5%.  In essence, there is almost no spread, which means that the investment property is unlikely to cash flow.  Even worse, the investor could be in a negative cash flow situation having to pull money out of their pocket every month.  I personally like to work with spreads of 2.5% to 3% to ensure healthy cash flow and to provide a buffer should interest rates rise upon rate reset. 

5. Be weary of too much leverage

Real estate investing and leverage go hand in hand.  In fact, without leverage, most real estate investors wouldn't exist as they wouldn't be able to pay for their property entirely in cash.  As much as I love leverage and have used it extensively to make significant gains, it must be approached with extreme caution.  Basically its the old adage ... too much of a good thing.  While taking on large amounts of leverage/debt may seem like a great idea now that interest rates are at historic lows, one must keep in mind that in all likelihood, when the mortgage resets in 3, 4 or 5 years from now, on a balance of probabilities, mortgage rates will be significantly higher than they are today.  If you are overleveraged this can pose a significant problem with your cash flow and your ability to service your debt.  As a rule of thumb 65% to 75% LTV, in a longer term (5 or 10 year) are usually a pretty safe bet.

Authored by:: Paul Kondakos, BA, LL.B, MBA - Professiona Real Estate Investor

 PAUL KONDAKOS | POSTED ON  MONDAY, JUNE 24, 2013 Realtyhub

Five more tricks to finding a bargain

Here are the last five of ten ways investor Gord Lemon urges you to beat the bushes for a deal. Ahem, a deal at a discount, no less. Note: They're in no order of preference or effectiveness, although all require initiative and, perhaps, a little luck.

The truth is, says Lemon, When it comes to finding more deals, it is not the lack of resources, but rather the lack of resourcefulness that truly prevents real estate investors from reaching their investment goals.

Go to your local landlord/tenant board
There are cases which are held on a regular basis at landlord/tenant boards across the country. These happen both in the courtroom and outside of the courtroom by a mediator. Attending these hearings from time to time gives you the opportunity to meet landlords or property managers who have just come from an experience they probably wish they had not had to go through. They may be very willing to talk to you about selling their property.

Go to foreclosure court
Going to foreclosure court can be a very interesting experience. You can witness foreclosure hearings which will be at various stages in their processes. Sometimes the owners are in attendance and sometimes not. The reason for attending, other than for your edification, is to potentially meet owners and be able to provide them some help. This may be financial help, advice to save their property or a deal to buy the property. Sincerely providing options to owners who are unfamiliar with the process can be invaluable to them. I encourage you to understand the foreclosure process in your province.

Placing ads
Utilize local papers and online ads like Kijiji and Craigslist to get your message out. Simple messages like: “I can buy your house fast!” “Need to sell your house today?” It can be as simple as “I Buy Houses.” These ads work well under the “Money to Lend” sections and attract people who are looking for cash to keep their houses. They may read your ad and realize if they just sold their house, it may relieve their financial pressures.

Fax Realtors
Create a simple message.
“I am looking for distressed houses in [your area of choice] that I can get for a minimum of 10% (or whatever your number is) under market value. I can buy cash and close quickly.” When you fax this to all the local real estate brokerages, you should get calls. This can be the initiation to creating some great relationships with Realtors who may be able to find you some great deals.

Word of mouth
There is no better advertising for you than word of mouth.

Just like in any type of sale, when a trusted friend, neighbour or business associate passes along your name to someone they feel can benefit from what you do, it comes as a great recommendation to the person receiving it. This can dramatically help in your sales process as your service and credibility have perhaps already been addressed. All you have to do now is fill the need and make the sale.

This was originally posted by Gord Lemon and source Canadian Real Estate Wealth Magazine, a monthly publication focused on building value through property investment, covering topics such as values and trends, mortgages, investment strategies, surveys of regional markets and general tips for buyers and sellers.

Shannon's note: establish a good relationship with REALTORS who will carry "pocket" listings and create "VIP Lists" so you'll be in the know. Ask and interview!

Additional NOTE: Check out Top Investor Award 2013 Winners from the Canadian Real Estate Wealth Magazine - Top Investor Awards naming Shannon P. Murree, Sales Representative with RE/MAX Chay Realty Inc Brokerage the 2013 Winner as Top Real Estate INVESTOR Agent -Eastern Division 

Investing: Rentals: What's your tenant profile?

Great tips from Paul!

Everyone has heard at least one horror story of "the tenant from hell," so much, in fact, that dealing with renters is the biggest fear potential investors face, writes industry expert Paul Kondakos. But that threat can be easily mitigated.

Owning an investment property is tantamount to owning a small business. To succeed in business, you have to ensure that you have a good client base that respects your business and pays bills on time.

The same holds true for succeeding in real estate investing, you have to ensure that you have a tenant profile that respects the property and pays its rent on time.

For most novice investors, the tenant profile is likely something that hasn't even crossed your mind, but it is actually one of the most important factors to determining your success. Some of it is tangible and some of it is intangible. As you become more experienced, you'll get a better feel of what makes a good tenant profile.

There are two occasions when you have to pay particular attention to the tenant profile. The first is when you are purchasing a new investment property. Assessing the tenant profile has to be a consideration because a bad tenant profile can cost the novice investor time, stress and money.

On a side note, for the more experienced investor a bad tenant profile isn't necessarily a bad thing as; (1) the experienced investor knows what they are getting into; (2) the property is usually priced accordingly, and (3) turning around the tenant profile can be a lucrative proposition.

Assuming Tenants - Talk to Every Tenant

When purchasing an investment property, the buyer has to assume the existing tenancies so you need to ensure that you are comfortable with what you are getting as you have no control over who is currently living in the property. The best way to learn about your prospective new tenants is to talk to them.

Be present at every inspection and try to schedule inspections for the weekend or evenings as most tenants tend to be around at that time. Depending on the reports required (eg. appraisal, building condition assessment, phase 1 environmental), you will likely have at least 2 occasions to meet and talk to them.

Always take personal notes so you can review and assess afterwards. Engage the tenant in small talk. This will not only reveal potential issues with the building, it will give you a good idea of the tenant's personality. Things to looks for:

    - Cleanliness of unit
    - Items that shouldn't be in unit (eg. washer/dryer, moped - I found one in my latest building inspection)
    - Pets (loud, neglected)
    - Does the tenant seem personable and cooperative?
    - Does the tenant like to complain alot?
    - Does the tenant work, do they have anyone that stays over, do they like living there, do they get along with their neighbours?

After a quick inspection and short conversation you can usually tell what type of tenant this is going to be. Once you have inspected all the units and hopefully met all the tenants and have taken good notes, you can review and decide on whether this is the type of tenant profile that you would be comfortable assuming.

Renting to New Tenants - How an $11.30 investment can save you thousands!

Here you have a lot more control of your tenant profile as you decide who gets to live in the property. This is where you need to be diligent and selective about who you let in as it will make all the difference between owning a profitable and headache-free investment or owning a money-losing and headache-filled one.

All too often, landlords are more concerned about filling vacancies than the quality of their tenant profile. In the short term they may fill a vacancy, but in the long term, it always, always costs them more. This I know from experience.

The ability to come up with first and last month's deposit should only be one of the criteria, and certainly not the only one. You need to learn as much about your prospective tenant as possible. My checklist includes the following:

    - Letter of employment or pay stub
    - Call employer to verify employment and get reference
    - Call previous landlord for reference
    - Tenant traits - Appearance, punctuality, demeanor
    - Do an online search (eg. work, hobbies, activities, asssociates, etc...)
    - Credit Check (Price: $10.00 + HST) - The single most important and effective way to forecast if you will get your rent on time every month. People earn good credit scores by being responsible and diligent with their financial obligations. I typically look for a score of 680 or higher.

While it may be tempting to fill a vacancy with a suspect tenant, you are ALWAYS better off to absorb the cost of the 1 month vacancy and hold out for a good tenant to occupy the unit.

What's the Big Deal About the Tenant Profile Anyway?

As mentioned earlier, having one bad tenant can significantly affect your investment and your stress levels. When I first started off, I was a lot more lax about who I let into my properties. The application, first and last, and a call to the previous landlord was about the extent of my due diligence. This lack of scrutiny ended up costing me tens of thousands of dollars and lots of stress.

Below is a sample calculation of how much one bad tenant can cost you:

______________________

Lost Rent (assume $800/month): $2,400+

Tribunal Filing Fee: $170

Tribunal Representation (if you don't go yourself): $200+

Sheriff: $330

Repairs and Renovations (almost every tenant I have evicted has left the unit in need of repair): $3,000

Intangible Costs: Stress, Your time, Tenant Profile

Total: $6,100 + Intangible Costs

______________________

I own and manage close to 100 doors right now and I find it easier to manage now, ever since I became more prudent with my due diligence and started checking credit scores, than I did when I owned substantially less doors but did not run credit checks.

With a good tenant profile, tenancies tend to last longer and when tenants give notice to vacate, transitions are almost seamless. A good tenant will give proper notice, which then gives the landlord enough time to advertise and rent the unit (usually left in good condition) out to a new tenant without incurring the costs of a vacancy. This not only maximizes your revenues, but also minimizes your stress and headaches as a landlord.

In closing, pay close attention to your tenant profile as it is one of the most important elements to running a successful and profitable investment property.

Source: Paul Kondakos is a professional real estate investor and operates industry site RealtyHub.ca

Fewer investors, homeowners looking to sell: report

Fewer investors, homeowners looking to sell: report

Written by  Vernon Clement Jones - Canadian Real Estate Magazine

National home sales slipping 17 per cent in December from a year ago, according to new report from the Canadian Real Estate Association, suggesting investors are no more anxious to sell than homeowners.

"Sales activity continues to hold fairly steady at lower levels since mortgage rules were changed earlier in 2012, said CREA President Wayne Moen Tuesday, “but there are still some real differences in trends between and within local housing markets."
More generally, national home sales edged 0.5 per cent lower in December 2012 compared to November, and actual activity was down 17.4 per cent year-over-year.
A large part of the equation is the falling number of listings, said one analyst. They dropped 1.3 per cent from November to December, something that may encourage buyers now in the marketplace to act sooner rather than later. But the decline also points to the growing number of investors now opting to hold onto their current portfolios rather than sell up to access equity.

"While some will focus on the deep dive in sales from a year ago, it looks as though prices are providing a better read on the health of the sector, as homeowners are in no rush sell," write economists at BMO, referring to the new data. "Prices are easing gently, consistent with a soft landing through much of the country."

Fewer listings mean those investors looking to add to their holdings will likely be challenged, especially in terms of small multi-family properties.

Still, the challenge of new mortgage rules introduced in July remain, with many analysts writing off the possibility of a repeat of last winter’s brisk activity as buyers sought to get an jump on the spring competition.

That activity was spurred, in part, by unseasonably warm weather.

In 2012, a total of 453,372 homes traded hands over the Canadian MLS system, which represents a decline of 1.1 per cent from 2011 and 1.4 per cent below the 10-year average.
The downward trend is actually in line with projections for this year, with Jim Flaherty’s new mortgage rules bearing the brunt of any blame.
Still, investors anticipating an even greater shift to the current landlord's market may be disappointed.

The government isn't expected to further tighten rules this year. The Finance minister has suggested the government is satisfied that its move to lower the amortization on insured mortgages, along with other key changes – in addition to OSFI’s new lending guidelines – have already begun to de-accelerate consumer debt.

Want to Save Money On Those Mortgage Payments? Here's how!

Will biweekly mortgage payments save you money?

Here’s how to do the math to see if paying more frequently is a smart option.

Question: I refinanced two years ago and received an offer to pay biweekly instead of monthly. Will this help to reduce my mortgage more so than with monthly payments? If so, how and where can I apply? 

Answer: Making biweekly payments on your mortgage will absolutely cut your interest cost and shorten the term of your loan, to boot. Such an arrangement usually is set up as an automatic debit from an account you specify. The mortgage lender will sweep through that account every two weeks and collect exactly half of your required monthly payment.

How does it work?
While there are only 12 months per year, there are 26 two-week periods. This means you are essentially making 13 monthly payments per year. In today's market, this can save you a bundle, especially if you start counting from the first monthly payment, because it reduces the term of a 30-year loan to about 25 years.

How much are the savings?
On a $200,000 mortgage at 5%, you'll cut the total term by just about five years, while shaving off more than $34,000 in interest cost.

Biweekly payments can be valuable, but there's no magic to them. In fact, if you are responsible and dedicated, you can simply send in an extra monthly payment once per year and achieve nearly the same savings. The biweekly plan just makes it happen automatically.

That said, you should check the fine print. While a lender can charge you a one-time setup fee, watch out for any recurring transaction fees that could diminish your savings over time.

Use a mortgage calculator to see how you can save money with biweekly mortgage (or other) prepayments. Or, if you have a specific pay-off date in mind, try this It’s My Term Prepayment Calculator.

Other Calculators of Interest and Relevancy:

• Amortization 
• Financing Your Purchase 
• Mortgage Manager 
• Schedule
• Investment Planner 
• Buy Down 
• Affordability
• Affordability Chart
• Rent Vs Own
• Differential

Excerpts & Calculators from Canada Mortgage and Article Courtesy MSN

Barrie Home Sales Climb Higher in May 2012

Residential property sales recorded through the MLS® System of the Barrie & District Association of REALTORS® Inc. numbered 544 units in May, rising 21 per cent from year-ago levels.

Within the city of Barrie, sales activity was up by slightly less than the overall trend for the region. The city of Barrie saw 320 residential sales in May, 18 per cent above levels from May 2011.

A total of 2,039 Barrie homes have traded hands so far this year. That’s up 18 per cent from the first five months of 2011.

The year-to-date average price for all Barrie homes sold via the Association’s MLS® System in May 2012 was $302,217, up seven per cent from levels at the same time last year.

The year-to-date average price figure for homes sold just within the City of Barrie was $286,017. This was also a seven per cent increase compared to the same period in 2011.

The Barrie & District Association of REALTORS® cautions that over a period of time, the use of average price information can be useful in establishing trends, but it does not indicate actual prices in widely divergent areas or account for price differentials between geographical areas.

The dollar value of all home sales in May 2012 was $165.5 million, up 29 per cent from year-ago levels.

New Barrie residential listings were down two per cent from a year earlier to 801 units in May 2012.

Overall supply levels have generally been trending downward since last summer, and that trend continued to play out in May. Active residential listings on the Association’s MLS® System numbered 1,741 units at the end of May 2012. This was down 16 per cent from the end of May 2011.

There were 3.7 months of inventory at the end of May 2012 on a seasonally adjusted basis, down just slightly from 3.9 months at the end of April. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Sales of all property types in the Barrie region numbered 566 units in May, up 23 per cent compared to May 2011. The total value of all properties sold in May 2012 was $170.7 million, up 31 per cent on a year-over-year basis.

The Barrie and District Association of REALTORS® Inc. covers a geographical area that includes the City of Barrie and part or all of the surrounding townships, including Springwater, Oro-Medonte, Innisfil, Essa, Bradford-West Gwillimbury and Clearview. The Association provides continuing education, Multiple Listing Service® (MLS®), statistical information, and many other services to its members .

For more information regarding the Barrie real estate market please go to Investing In Barrie .com

The information contained in this report has been prepared by The Canadian Real Estate Association, in co-operation with The Barrie & District Association of REALTORS® Inc.. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither The Canadian Real Estate Association nor The Barrie & District Association of REALTORS® Inc. assumes any responsibility or liability. Copyright© 2012 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.

Barrie Home sales climb higher in April

Barrie Home sales climb higher in April Residential property sales recorded through the MLS® System of the Barrie & District Association of REALTORS® Inc. numbered 488 units in April, rising 14 per cent from year-ago levels. Within the city of Barrie, sales activity was up by more than the overall trend for the region. The city of Barrie saw 310 residential sales in April, 29 per cent above levels from April 2011. On a year-to-date basis, sales activity was running 16 per cent ahead of the first four months of 2011. “Demand remained at above average levels in April,” said Walter Doret, President of the Barrie and District Association of REALTORS®. “It’s actually been one of the strongest starts to any year on record. That’s drawing down the overall supply of properties for sale, which is resulting in tighter market conditions and continued upward pressure on prices.” The year-to-date average price for all homes sold via the Association’s MLS® System in April 2012 was $301,501, up seven per cent from levels at the same time last year. The year-to-date average price figure for homes sold just within the City of Barrie was $284,691. This was an eight per cent increase compared to the same period in 2011. The Barrie & District Association of REALTORS® cautions that over a period of time, the use of average price information can be useful in establishing trends, but it does not indicate actual prices in widely divergent areas or account for price differentials between geographical areas. The dollar value of all home sales in April 2012 was $150.4 million, up 22 per cent from year-ago levels. New residential listings were up two per cent from a year earlier to 861 units in April 2012. Overall supply levels have generally been trending downward since last summer. Active residential listings on the Association’s MLS® System numbered 1,701 units at the end of April 2012. This was down 10 per cent from the end of April 2011. There were 3.9 months of inventory at the end of April 2012 on a seasonally adjusted basis, up slightly from 3.8 months at the end of March. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity. Sales of all property types in the Barrie region numbered 497 units in April, up 13 per cent compared to April 2011. The total value of all properties sold in April 2012 was $154.2 million, up 23 per cent on a year-over-year basis . For more information if wanting to purchase in Barrie - contact InvestingInBarrie.com The Barrie and District Association of REALTORS® Inc. covers a geographical area that includes the City of Barrie and part or all of the surrounding townships, including Springwater, Oro-Medonte, Innisfil, Essa, Bradford-West Gwillimbury and Clearview. The Association provides continuing education, Multiple Listing Service® (MLS®), statistical information, and many other services to its members.

The information contained in this report has been prepared by The Canadian Real Estate Association, in co-operation with The Barrie & District Association of REALTORS® Inc.. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither The Canadian Real Estate Association nor The Barrie & District Association of REALTORS® Inc. assumes any responsibility or liability. Copyright© 2012 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.

Barrie Home sales remain strong in March

Barrie Home sales remain strong in March Residential property sales recorded through the MLS® System of the Barrie & District Association of REALTORS® Inc. numbered 418 units in March, rising 10 per cent from year-ago levels. Within the city of Barrie, sales activity was up by less than the overall trend for the region. The city of Barrie saw 250 residential sales in March, just one sale more than in March 2011. On a year-to-date basis, sales activity was running 17 per cent ahead of the first three months of 2011, and stood above the same period in all other years with the exception of 2007. “Demand eased up a little in March from the record setting pace we saw in February, but nevertheless remained very strong,” said Walter Doret, President of the Barrie and District Association of REALTORS®. “The recent jump in demand has been drawing down the number of properties for sale, which is resulting in tighter market conditions and continued upward pressure on prices.” The year-to-date average price for all homes sold via the Association’s MLS® System in March 2012 was $298,262, up seven per cent from levels at the same time last year. The year-to-date average price figure for homes sold just within the City of Barrie was $281,897. This was a seven per cent increase compared to the same period in 2011. The Barrie & District Association of REALTORS® cautions that over a period of time, the use of average price information can be useful in establishing trends, but it does not indicate actual prices in widely divergent areas or account for price differentials between geographical areas. The dollar value of all home sales in March 2012 was $125.9 million, up 17 per cent from year-ago levels. New residential listings were down four per cent from a year earlier to 778 units in March 2012. Overall supply levels have been trending downward since the end of last summer. Active residential listings on the Association’s MLS® System numbered 1,501 units at the end of March 2012. This was down 13 per cent from the end of March 2011. There were 3.8 months of inventory at the end of March 2012 on a seasonally adjusted basis, up from 3.5 months at the end of February. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity. Sales of all property types in the Barrie region numbered 426 units in March, up 10 per cent compared to March 2011. The total value of all properties sold in March 2012 was $129.2 million, up 19 per cent on a year-over-year basis . The Barrie and District Association of REALTORS® Inc. covers a geographical area that includes the City of Barrie and part or all of the surrounding townships, including Springwater, Oro-Medonte, Innisfil, Essa, Bradford-West Gwillimbury and Clearview. The Association provides continuing education, Multiple Listing Service® (MLS®), statistical information, and many other services to its members. Need more info - contact InvestingInBarrie.com

The information contained in this report has been prepared by The Canadian Real Estate Association, in co-operation with The Barrie & District Association of REALTORS® Inc.. The information has been drawn from sources deemed to be reliable, but the accuracy and completeness of the information is not guaranteed. In providing this information, neither The Canadian Real Estate Association nor The Barrie & District Association of REALTORS® Inc. assumes any responsibility or liability. Copyright© 2012 The Canadian Real Estate Association. All rights reserved. Reproduction in whole or in part is prohibited without written permission.

Barrie Real Estate & Investing - Barrie home sales rise in January 2012

Barrie home sales rise in January 2012

Barrie residential property sales recorded through the MLS® System of the Barrie & District Association of REALTORS® Inc. posted a solid year-over-year gain in January 2012.

Barrie home sales numbered 218 units in January, rising 11 per cent compared to the same month in 2011.

Within the City of Barrie, sales activity was up by less than the overall trend for the region. The City of Barrie saw 142 residential sales in January, up eight per cent from one year earlier.

The average price for all Barrie homes sold via the Association’s MLS® System in January 2012 was $288,549, up five per cent from levels in January 2011.

The average price figure for homes sold just within the City of Barrie was $278,234. This was a seven per cent increase compared to the same month in 2011.

The Barrie & District Association of REALTORS® cautions that over a period of time, the use of average price information can be useful in establishing trends, but it does not indicate actual prices in widely divergent areas or account for price differentials between geographical areas.

The dollar value of all Barrie home sales in January 2012 was $62.9 million, up 16 per cent from year-ago levels.

New Barrie residential listings were down three per cent from a year earlier to 560 units in January 2012.

Active residential listings on the Association’s MLS® System numbered 1,246 units at the end of January 2012. This was down five per cent from the overall supply at the end of January 2011.

There were 4.6 months of inventory at the end of January 2012 on a seasonally adjusted basis, down slightly from 4.7 months in December 2011. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Sales of all property types in the Barrie region numbered 227 units in January, up 10 per cent compared to January 2011. The total value of all properties sold in January 2012 was $68 million, up 22 per cent on a year-over-year basis .

For more information regarding the Barrie Real Estate Market go to Investing In Barrie.com

Source:
The Barrie and District Association of REALTORS® Inc. covers a geographical area that includes the City of Barrie and part or all of the surrounding townships, including Springwater, Oro-Medonte, Innisfil, Essa, Bradford-West Gwillimbury and Clearview. The Association provides continuing education, Multiple Listing Service® (MLS®), statistical information, and many other services to its members.

Real Estate Investing Is So Intimidating!!

Oh, no you don't want to be a real estate investor! It's such a total nightmare. You can never find good tenants, they always damage the property, we're in a housing crisis, there's no money to be made. Ok, you can keep thinking that - it's ok because in the meantime there are others that see past all that and are buying the things you're not because of your fear and listening to the negativity of others. It's ok, while you keep reading the headlines other people are taking advantage of creating their wealth, building investment portfolios and having the opportunities come available to them every single day.

People think real estate investing is a nightmare and hear negative things about it all the time. Question, do you always listen to people and don't research things yourself? Real estate investings has been going on since the beginning of time and can definitely see how it's affected those people who have taken action and created wealth. IT'S NOT AS INTIMIDATING AS YOU THINK.

As our spending power decreases the people that are able to invest in properties are the ones that will see the results later on (if they have not seen the benefits already). Being well informed by research, asking questions, learning from other successful people, building a team of people that know what they're doing are several ways to be self-informed and gain confidence. One of the reasons why people engage in property investment is its relative stability. Generally property prices will increase (or appreciate) as time goes by. That being said, this is what the appeal of real estate investing in properties is.

If you're new "to the game" and have been thinking about it, outside of finding a "Geographic Specialist" (don't be influenced by the price and/or how low a property is); here are a few tips to help get you started and have a long term success as being a real estate investor - not a speculator:

Step 1: LOCATION

The location of the Property – This is by far the most thought about factor when deciding to invest in properties and one of the most important aspects of property investment. Why? It's one of the primary determining factors of how you are able to price it; (exit strategy/resale) and/or rent. When people are thinking about renting or buying property the first thing that will determine their choices is the location of the property. So basically if you are able to purchase property that has the following: close proximity to transit, shopping malls etc then you will most likely be able to attract more buyers and renters.

Step 2: HARD WORK – DO YOUR NUMBERS BEFORE MAKING AN OFFER- calculate rents and make sure the rents will justify your costs/expenses of owning the property. The worst thing you can do is overpay for a property and not calculate correctly the income/expense ratio and essentially, not getting enough rent to covers expenses and paying for the tenant to live there. That is not effective investing.

Step 3: BE PATIENT - you've calculated your vacancy rate so ensured you have that buffer. Know that in real estate investing and tenant placement nothing happens overnight. Even the best investment properties can sometimes take time to get people that are willing to rent. Regardless in whatever you do after you have done all that you can you need only wait till you get the best price for your property.

There are so many more tips that can be shared but mostly, look past the naysayers and ask yourself - are they in 9-5 jobs and are they wealthy? Stop only dreaming and continuing to be in the same mundane, daily routine. Real estate investing is not as intimidating as you think but it is truly important to have "experts" in their field that know what they're doing. It will be your business.

INVEST. BUILD WEALTH. RETIRE.



You can't do anything about the length of your life, but you can do something about its width and depth.


- Shira Tehrani

Action may not always bring happiness, but there is no happiness without action.

- Benjamin Disraeli


Life is a great big canvas, and you should throw all the paint you can on it.

- Danny Kaye