Chicken Little and Media...

If you're anything like me, you're a compulsive news reader. I have a love-hate relationship with news-media. I feel it is very important to be in touch with the world around me, as it impacts my business on a day-to-day basis, as well as shaping the future of my marketing avenues, and business planning, however, it can be very difficult to overcome the overwhelming, and CONSTANT negativity in the news.

At this time I am in a position, thanks to some wonderful Realtors and Industry analysts, to repeat a prediction that I encountered recently. Brace yourself for it - THERE WILL BE NEGATIVE MEDIA regarding the Real Estate market, very shortly. Yes, I know, this is a shocking revelation!

My goal today is to soften the impact of this sensationalist media by preparing you. By arming you with the facts.

Most of this content is "borrowed" from a gentleman named Doug Hannan, who is a Broker/Manager for RE/MAX West on Bloor st in Toronto (Another universe in Real Estate land, but nevertheless, seemingly the sole focus of real estate media in Ontario).

Doug obviously follows the Toronto Real Estate Market very closely. He has noted that in the month of July. TREB's (Toronto Real Estate Board) sales numbers were slightly lower than expected. He also noted that inventory had dropped a proportional amount, indicating balance in the market. Sales for the month were 6,566 units, down 1,900 from June of the same year (a typical seasonal drop - Vacation time!!). New listings this month are down 3,000 units to 21,096. It is to be noted that RE/MAX Realtors have been predicting a decrease in inventory since late 2009.

Where the media sensationalists will galvanize, is in the Year over Year numbers. It stands to reason that a July 2009 vs. July 2010 drop in sales of 35% would yield some alarm bells, but I am predicting that the media will have a decidedly un-elephant-like memory. They will fail to note (as they have previously failed to note) that July of 2009 was an absolutely ABNORMAL month, even in an extremely hot year. July 2009 Sales set a record at 9,967 sales (up 28% from July 2008). Benchmarking against the best July of ALL TIME is an unfair method of assessing the health of our market. The media won't mention this, save for a tiny disclaimer at the end of their "Real Estate Bubble is HERE, the sky is falling, depreciation is just around the corner, thousands to be left over-leveraged on inflated prices" reports.

The Sky is not falling, friends. Balance and sustainable growth will be the cornerstone of the immediate Real Estate market.

Thanks Doug - for the insight!

To Reach Doug Hannan of Re/Max West, try this:
doug.hannan@sympatico.ca

Thanks for reading!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

How to Hire a home inspector - courtesy CBC news

Here's a great article regarding Home Inspectors posted today on CBC NEWS.


The home inspection business got a big black eye in November 2009 when a British Columbia judge ordered an inspector, Imre Toth, to pay $192,000 in compensation to some homeowners after they sued him for failing to identify major problems.

The issues in the Toth case focused on his failure to note extensive rot in part of the house, using a lowball estimate for repairs and rushing his clients to sign a contract limiting his liability. Toth says he will appeal the decision.

The case caused a buzz right across the country. Homeowners who felt they'd had a faulty home inspection issued a chorus of angry rants about inspectors' incompetence or lack of liability, while the decision sent a chill through the home inspectors.

One thing is clear: The standards for home inspections in Canada are all over the map.

"To be a home inspector you only need a business card and a flashlight," says Bill Sutherland, the president of the Canadian Association of Property and Home Inspectors (CAPHI), an association that is trying to raise the standards of home inspections.

Sutherland, who lives in Kamloops, B.C., says about half of Canada's home inspectors are members of CAPHI. The rest don't belong to any recognized associations.

Still, even hiring a member who belongs to an association is no guarantee of a trouble-free inspection. Imre Toth is a CAPHI member in B.C., the only province that now regulates the profession. Sutherland said the Toth case was unfortunate, adding that even educated and trained inspectors can make a mistake, but he says he believes most accredited inspectors do a good job.

Finding a qualified inspector

Consumers without an extensive knowledge of home construction and maintenance are in a tough position when it comes to hiring an inspector. It's something that's usually done in a hurry, sometimes even after an offer to purchase has been made. Few people have any idea about who they've just hired unless they live in a small community where the inspectors are known.

So how do you find the right one?

• Don't wait until the last minute. Start looking for an inspector as you begin to look for a home.
• Ask around to see if family or friends know an inspector they trust.
• Your real estate agent may make a recommendation. If you trust your agent, get in touch with them.
• Check the internet to find an inspector and see if there is any feedback online about them from happy or unhappy clients.
• Ask the inspectors for their credentials and references. One inspector with 16 years experience and many recognized credentials said no one has ever asked him about his education. The person you're about to hire should be a good communicator. You should ask what they did before they became a home inspector.

Credentials

B.C. has licensed its inspectors since March 2009, which means they must belong to one of three organizations with a recognized level of education and experience and carry liability insurance.

All the other provinces have self-regulating professional bodies that set the standards for home inspectors, and they are also members of CAPHI national. You should look for a Registered Home Inspector (RIH) designation. That means they've passed accredited courses specific to home inspections and defect recognition classes. They've also performed a minimum of 250 paid inspections.

There are a few other building trades organizations, such as the Applied Science Technologists and Technicians (ASTT) which is outside CAPHI but certifies home inspectors.

Another type of accredited inspector is a National Certificate Holder (NCH). They can work in any province, have done 150 paid inspections and have had their work peer reviewed by CAPHI.

You can verify if someone is certified nationally by checking this website.

Standards of Practice

Before hiring an inspector, check out the standards of practice.

It's the guideline for professional home inspections, although many inspectors go beyond its basic requirements. It also forms the basis of a contract you'll be expected to sign which limits the inspector's liability if problems crop up that weren't identified during the inspection.

Before the inspection begins, read the contract carefully and ask questions. And understand what they mean when they say it is a "visual inspection of readily accessible places."

Be sure to attend the inspection. It's your chance to learn something about all the systems that make a house run. The home inspector should provide a written report reviewing every major home system and component within 24 hours of the inspection.

If your inspector finds something that worries you, consider hiring a specialist for a second opinion. Inspectors are generalists and you might need a specialist to look at specific concerns about the wiring, the furnace or that damp basement.

The whole home inspection should take about three or four hours and cost about $350 to $500.

Some critics of the business say that's not enough time to thoroughly inspect such an expensive investment. They suggest paying more and hiring a contractor or even an engineer, but that idea has not yet caught on.

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

RBC drops fixed interest rates

From Corey Cunningham, RBC Mortgage Specialist

With all the news lately about mortgage rates on the verge of climbing, I am very happy to report that rates have dropped for most of our fixed rate terms.

Variable closed remains very popular amongst most clients at PRIME (2.25%).

Our most attractive fixed rate term I suggest would be the 3 year at 3.85% which will line up nicely with the next presidential election. And if history repeats itself, like it usually does, that's always a time for lower interest rates.

Please email Corey @ corey.cunningham@rbc.com for more details and to discuss your mortgage!

Ben Sage, Sales Representative. http://www.bensage.com http://www.oxfordcountyhomes.ca Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

New Listing - 585 Sales Dr

Realtor.ca link - MLS #63-341

This is a gorg­eous, well appointed, open concept home, close to 401/403, in immediate vicinity of the new Woodstock Hospital, close to parks and shopping and with all the amenities desired by the modern family. At only 1 year young, this nearly-new home has only been nicely broken in. With durable finishes such as ceramic and laminate flooring, a large double garage, and main floor laundry, this home is ready for your family, while the beautiful kitchen and open concept living room with dramatic cathedral ceiling will impress your guests. Call today to book your private showing! Immediate possession available. All RSA.

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

New Listing - 597 Sales Dr - New Bungalow with Loft! Amazing home!!

MLS # 61-882 (realtor.ca link)

Asking $299,900

This gorgeous new quality built 2150 sq ft Bungalow is waiting for you! The gorgeous stone exterior is just a hint of the quality found in this home! Inside you will find an amazing, open concept floor plan with dramatic vaulted ceilings, a large main floor master bedroom with ensuite bath and walk in closet, main floor laundry room, and an exciting loft with its own bathroom and two more bedrooms. Finished with quality materials such as hardwood flooring in the great room and ceramic tiles in the bathrooms and kitchen areas, and painted in tasteful modern colours, not to mention beautiful dark stained oak kitchen cabinets and oak hand railings. Don`t wait for this one to pass you by!

Ben Sage, Sales Representative. Re/Max a-b Realty Ltd., Brokerage. 519-536-7535. 521 Dundas St., Woodstock, ON

Bank of Canada keeps key rate unchanged

Reprinted courtesy of CBC NEWS

The Bank of Canada left its key overnight interest rate unchanged Thursday as it again warned that a high Canadian dollar poses a risk to economic recovery.

The target for the overnight rate will remain at 0.25 per cent. Economists had expected no change.

The central bank also reiterated its commitment to leave the key rate at that level through the middle of next year as long as inflation remains in check.

The central bank said growth for the remainder of the year will likely be higher than it forecast earlier this summer.

"Combined with recent information on inventory adjustments and automotive production, this suggests that GDP growth in the second half of 2009 could be stronger than the bank projected in July," it said in a release.

The central bank said it still expects inflation will remain low and will return to its two per cent target in the second quarter of 2011 "as aggregate supply and demand return to balance."

Government softens impact of HST on new housing

Reprinted courtesy of CREA


The Government of Ontario is proposing two measures that will soften the impact of the harmonized sales tax (HST) on new housing. The HST was introduced in the 2009 Ontario Budget.

Under the first measure, the province proposes to enhance the new home HST rebate so that it
would be calculated as 75 per cent of the provincial portion of the HST payable on the purchase
of a new home, up to a maximum rebate of $24,000. Under the government’s initial proposal only homes under $400,000 qualified for the 75 per cent rebate.

Similar to the enhanced new housing rebate, the province is proposing a rebate for new residential rental properties. Landlords who purchase new rental homes would be eligible for the rebate, calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new rental home, up to a maximum rebate of $24,000.

The province is also proposing HST transitional rules for new housing. Generally, as part of the
transitional rules, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.

For more information on the HST - click HERE

There you go - buy your new house before June 18, 2010 and save!

Housing affordability improves, RBC says

Reprinted courtesy of cbcnews.ca

It's becoming easier to carry the costs of home ownership in Canada, but a survey by RBC Economics on housing affordability suggests this may be as good as it's going to get.

Home ownership became more affordable in the second quarter, the bank said Wednesday. It was the fifth straight quarter that the measure improved, it said.

"The national home affordability level has been restored to pre-housing boom levels," senior RBC economist Robert Hogue said in a statement.

But he warned that consumers shouldn't expect affordability to improve much more.

"The recuperative phase of the affordability cycle seems to be drawing to a close, with housing prices firming up in many parts of the country, and mortgage rates no longer trending downward," Hogue said.

Most banks lowered their mortgage rates in the last week, reversing this summer's earlier rate hike. A five-year fixed closed mortgage can now be obtained at 4.19 per cent at many banks and as little as 3.99 per cent at a few smaller financial institutions.

The RBC affordability study measures the percentage of pre-tax household income needed to service the costs of buying a home (mortgage payments, utilities and property taxes).

Housing affordability - bungalow
City	Q2/09 (% of pretax income needed)	Q2/08
Vancouver	63.4	76.8
Calgary	35.7	46.2
Edmonton	33.8	41.8
Toronto	46.5	54.2
Ottawa	38.6	42.4
Montreal	37.3	41.4
CANADA	39.1	45.4
Source: RBC Economics

The study found that it took an average of 39.1 per cent of income to pay for a detached bungalow in the three months ending in June — down from 39.7 per cent in the first quarter.

The priciest market continued to be Vancouver, where it took 63.4 per cent of pre-tax income to service a bungalow purchase.

Nationally, the RBC study found that affordability also improved for two-storey homes, townhouses and condos.

Despite predictions that home affordability is levelling off, RBC economists say the recent bounce-back in the housing market is not likely to wane any time soon.

"Supply of properties for sale is dropping as demand bounces back, which is working to heat up prices again in many parts of the country," RBC's Hogue said.

Figures from the Canadian Real Estate Association showed that 50,270 homes changed hands in July via MLS — a record for any July.

The average residential resale price rose 7.6 per cent from a year ago to $326,832.

First Time Home Buyers - What a GREAT time to buy!!

Are you thinking about buying your first home? Has the recent recession reduced home prices to the point that you're considering diving into the world of home ownership?

Now is DEFINITELY the time to act.

Contact me right now to find out how I walk buyers through the entire process of buying their first home, from the very first private showing, all the way through to personal pizza delivery on moving day, I will be with you every step of the way.

Here are only some valuable areas I can provide assistance:

Introduce you to a mortgage specialist. A friendly person, who will meet you in your home on your own terms to discuss your plans, and get a pre-approval.

Arrange private showings on listings that we select together. Ride in my car, if you want. I keep it running well and its (normally) very clean!

Benefit from my knowledge of Woodstock. Where will my kids go to school? Where can I find the best ice cream in town? Who does the fastest oil changes?

Assist through the process of making an agreement to purchase. Negotiating a purchase price that works for your budget, drafting conditions to protect you and your future investment, advising on aligning dates that work for you.

Recommending professional tradespeople to perform any services that you might require. As a real estate agent, a homeowner, and an investment property owner, I meet and use lots of Home inspectors, mortgage specialists, insurance agents, movers, cleaning services, plumbers, electricians, property maintenance, etc.

Show you how you can maximize your purchase and get thousands of dollars in government rebates for home renovations, deduct thousands of dollars from your income taxes, pay no land transfer tax, cash in your RRSP's tax free towards your downpayment, and benefit from historically low interest rates.

Respond very quickly to any requests you make. By embracing technology, I am equipped to receive your email, text message, and voicemail requests instantly and endeavour to always respond as soon as possible. Even if it's as quick as "Hey Bill, I got your Message. I'm on the 14th hole. I will respond to it as soon as I return to the office!"

So with property prices down, and rent steady or increasing, why not take the plunge? I go above and beyond with every step. Take advantage of what I'm offering today!

Call me - 519-536-7535 ext 487