Durham Region Real Estate Blog

George & Ethel sunning on the ice.

Sometimes you get what you need, not what you want.

As I awake on a spring morning I’m always filled with anticipation of who has moved into the pond today. This morning bought a little suprise. It was so cold overnight that the part of the pond that had thawed was frozen again, but for a 3ft opening. Surely there wouldn’t be any visitors today. So imagine how happy I was to find one very sweet, Mallard couple had moved in. I wondered what they thought when they decided to leave their winter home and return for our wonderful, Ontario summer. “Ethel, spruce up your feathers, I’d like to head out now and beat the traffic home. We want to make sure the prime, summer real estate isn’t taken!”  Does Ethel wonder if her chosen mate is daft? Doesn’t he know that Ontario weather in March is unpredictable? Well, she need not have worried. Sure the weather turned bitterly cold, but her loved one provided. Maybe this small,open water isn’t the place they wanted, but it is all they needed…for now.

Home buying is just about the same thing. Some buyers are out there early, searching for the perfect place to call home. Others wait a little longer into the traditionally busy spring season to start their search. All buyers will find eventually find the right place. Maybe it’s not exactly what they pictured when they started out, but it is what they need for their family. And in the end, even if they think they have settled, it usually works out to be the perfect place. And once it’s no longer perfect they move on.

Which brings me back to the ducks. Ethel and George stayed for the better part of the day. Ate their fill, sunned themselves on the ice, cleaned and fluffed their feathers and then moved on. I’ve no doubt that their next home, no matter how long they live there, will be exactly what they need.

I’ve known the ins and outs on HST and resale homes since the government released the news about the dreaded tax. No HST on resale homes and then a whole can of worms for new home sales. Well, that’s not true as there are rules and exceptions to the rules, just like everything else. Though I’ve gone over this topic in the past, and much of that information will be reitterated here, home buyers still have questions so it’s worth another look.

First let me say, “HST does not apply to resale homes”.

Revenue Minister Sophia Aggelonitis and Toronto Real Estate Board President, Bill Johnston, have released a video explaining to prospective buyers the facts about the HST and the housing market. The video highlights the fact that there is no HST on the purchase price of resale homes. Sales tax did not apply to the purchase price of resale homes under the previous PST, and it does not apply under the HST.

For new housing, additional tax only applies to the portion of the price above $400,000. The Ontario Enhanced New Housing Rebate means that buyers of new homes receive a rebate of up to $24,000 regardless of the price of the new home. Buyers of new homes priced up to $400,000 (about three-quarters of new homes built in Ontario) on average pay no more – and possibly even less – tax than under the previous PST, where sales tax was hidden in the price. I wonder if anyone has seen a reduction in the sale price of their new home due to the HST!

Spring definitely brings on the desire to move. The ice in our pond is moving south and east, pushing huge ice pieces up onto the banks and clearing out room in the middle of the pond. Birds are starting to move into the trees. Soon the ducks and geese will move in. Temporary rentals for our fine, feathered friends as these early birds are will just hang out until there are more suitable accommodations ready for them farther north. The resident rabbit has moved on from our front garden to the grass on the front lawn. Moles have been busy moving my crocuses to who-knows-where. And the people are moving too.

O.k. well not these people! Blair and I are quite content on our little lot in Courtice. But others are on the move. 653 people purchased a home in February, 2011 in the Durham Region, from Pickering to Newcastle and north to Port Perry. That’s up 29% from the numbers we saw in January, 2011. February sales are down 20% year over year, but last year saw a big rush to purchase prior to the implementation of the dreaded HST. Prices are up though. We’ve seen an average price increase of 5% and the number of new listings for the month was down.

Sellers are selling and buyers are buying. That’s a balanced market for sure. We expect that those people who were thinking of selling in 2010, but who were holding off until they saw improvements, will choose this spring to dip their toes in the market. More buyers will come out now that the temperature is rising and our snowbirds are returning. Which brings me back to my original thought; everything is moving around here.

Is it just my perception or are we seeing the sun a little more often these days? I’m not complaining though because I love the look of a clear, blue sky. Bright days make me want to get out there and view the trees to see if they are budding, and I’m anxiously awaiting the flowers which will soon push through the dirt and remainder of the snow.

Spring also brings a renewal to the real estate market. Typically more homes are listed as their owners come out of winter hibernation. Of course, buying a home is much nicer in the spring also. Who wants to traipse through a foot or two of snow, while all wrapped up in heavy layers of winter clothing, to get inside the front door of a stranger’s house, only to spend the first two minutes trying to get your boots off? It’s much easier to put on a pair of slip on shoes and a light overcoat (you know I had to call it that – just for the fun of using the word overcoat!) and have a look at some interesting houses. At least then you don’t have to spend a terrible five minutes getting redressed just to get out of a place you never would buy anyway!

If you are thinking of buying a home within the next year, you should start to educate yourself now. Be honest about your finances and what you can afford, then ask to be sent a link to homes that are priced in your potential affordability range. Have a look at what your money will buy today and then keep an occasional eye on this so when you are ready to purchase you will have a good idea of the types of homes that you will see. Then, if the first home you see is perfect, you’ll be ready to offer right away and not have to worry about seeing 5 or 50 more homes just to see what’s out there.

If selling a home is in your future, the education process for you should start now also. Get to know what is for sale in your neighbourhood, how much it is selling for and how long the houses are taking to sell. Don’t rely on neighbourhood gossip when it comes to the market though. Ask to have the listings sent to you so you’ll see the facts, not the local busy-body’s perception.

Excitement abounds in the spring. Things old are new again. Why not take this time to consider your current home and surroundings? If you discover that you need something new in your life, for whatever reason, give me a call and let’s find out what is really important to you. Maybe we’ll discover that you should stay exactly where you are, but if a move is in your future, I’d like to help you get to where you need and want to be.

Really, who cares? My inbox has been flooded with reminders that some of the mortgage rules are changing on March 18, 2011. Do I really need 20 updates, over two days, that if I want to refinance my home I’d better hurry up and get the paperwork in order? Well, obviously someone thinks I should care.

The maximum loan-to-value for re-finances will decrease to 85% from 90%; and the maximum amortization period will decrease to 30 years from 35 years. So, in layman’s terms, if your house is worth $100,000 right now you can borrow $90,000 against it if you refinance, but as of the 18th of March you’ll only be able to borrow $85,000, and you’ll have to pay it all back over the next 30 years instead of 35 years.

Some of us have gotten ourselves into a real pickle financially. Maybe self-inflicted, maybe not, but you can’t just take the easy way out when it comes to your finances. With a plan in place, a refinance for the maximum amount allowed may be the perfect solution for you, but it’s not always the right solution for everyone. For instance, if you are thinking of selling your home in the near future, refinancing is likely not the right option for you; prepayment penalties can be huge. If you want to refinance so you can get a 3D television, likely not the smartest move. But there are times when you need to refinance. You could use the extra money to pay off your high interest credit cards or car loan, then cancel the cards (so you’re not tempted to run the limits up again!) and then concentrate on paying the maximum amount off on your mortgage. In this case you want to be sure that you get yourself in to a mortgage that has a flexible prepayment schedule that  allows you to pay more than the minimum payment, without incurring an interest penalty. Make sure you talk to a great mortgage broker who has your best interest in mind.

So, who cares? Well, for those of you who are in that little financial pickle, who are likely not going to move in the next three to five years and who are starting a new path to financial responsibility, you are the ones who should care. The rest of you likely won’t, because you can still refinance, just only to 85% of the value and that will be enough for you. Inquires are free though, so don’t hesitate to ask, and if you need a referral to an agent who can help you make a good decision, contact me and I’ll point you in the right direction.

It’s a good thing my house is not for sale right now. No one would want to buy this little piece of dirt with a roof over it. But now that I’m thinking about it, maybe I should put my house up for sale just so I would be motivated to keep it clean!

I have a great appreciation for my sellers who have spotless houses. I can call to book a showing and they are ready in 15 minutes! Not convenient, I know, but that is the reality of having your home for sale in today’s market. Most people, when looking for their next house, want to buy something clean and well kept. We live in a me-centered, immediate gratification society. If they wanted a dirty, tired-looking mess, they’d stay in their current home! Nope. They want to buy your home with its clean floors and spotless bathrooms! If you are selling you’d better clean up the messes.

Harsh words coming from me now, but this is the reality of selling today. Buyers are smart and busy. They spend hours away at jobs and then are trying to fit in time for their children and themselves. There’s no time left for renovations and fixing up their new home. Especially when you think of the effort required to move. If the buyer of your home has a house to sell, they will be fixing the leaking faucet and cleaning the dirty windows, packing excess decorations and repainting that Maple Leaf blue bedroom (you know the colour I’m talking about; might even have that colour in your house). Once they finally have a moving date, there’s the whole packing and cleaning, and cleaning and unpacking to do. Who has any energy left for renovations at the new house?

So, if you are thinking of selling, prepare yourself for the work that is to come. Clean those areas of your home that you haven’t cleaned in a long time. Fix the faucet and wash the windows (and the window tracks). Repair the wall where the door handle created a hole and touch-up the paint; pare down on furniture and cute country decorations. Then make sure you don’t leave dirty socks on the floor or a pile of dishes in the sink because the next phone call you get might be me, calling to say that I have a potential buyer for you home and we’d like to come see it in the next 15 minutes!