Collingwood and Area Real Estate Barometer April 11-17, 2014

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This market summary includes data for Collingwood, Blue Mountains, Wasaga Beach, Clearview, Grey Highlands and Meaford. The information was obtained from the MLS® statistics provided by the Southern Georgian Bay Association of REALTORS®. Previous week(s) in brackets.

Single Family ResidentialSouthern Georgian Bay Real Estate Barometer
New Listings:  137 (78, 71, 49)
Average List Price: $474,855
Range of List Prices: $118,500 – $2,997,000
Number of Sales:   34 (26, 19, 22)
Range of Sale Prices:  $130,000 – $615,000

Condominiums
New Listings:  46 (23, 20, 13)
Average List Price: $242,565
Range of List Prices: $86,000 – $629,000
Number of Sales:  9 (13, 7, 10)
Range of Sale Prices:  $90,000 – $310,000

Vacant Land
New Listings:  17 (14, 8, 8 )
Number of Sales:   2 (1, 0, 1)
Range of sale prices:  $109,000 – $779,000

Price Changes (up or down):  49

Notable this week:

1 Condo and 1 Single Family listing sold for more than their list prices, and one Single Family listing sold at it’s list price.

 

A Big Week Ahead For the Canadian Mortgage Market – Monday Morning Interest Rate Update (April 14, 2014)

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Guest Post by Dave Larock

This is an important week in the mortgage world because our federal banking regulator, the Office of the Superintendent of Financial Institutions (OSFI), is expected to release a draft of its B21 guidelines which will amend, and most likely tighten, the underwriting guidelines used by Canada’s big three high-ratio mortgage insurers.

There is concern within the real-estate industry that the four rounds of mortgage rule changes that have already been made have not yet had time to fully work their way into our real-estate markets. The fear is that more rule tightening in the meantime may turn the regulatory screws too tight, causing a sharp slowdown in housing activity that cannot easily be reversed.

Our policy makers would argue that our real-estate markets have held up well in the face of the first four rounds of changes and that ultra-low interest rates are still fuelling house-price increases, which will become unsustainable without further tightening. Raising interest rates to bring our largest real-estate markets off the boil would damage our broader economic momentum, whereas tightening our high-ratio mortgage rules provides a more targeted solution. If you’re going to conduct surgery on part of our economy, goes the thinking, better to use a scalpel instead of a chainsaw.

The Bank of Canada (BoC) will also release its latest Monetary Policy Report (MPR) this week, which provides us with the Bank’s latest take on the state of the world’s largest economies and includes projections for where the BoC sees foreign and domestic economic momentum headed over the next several years.

The BoC has become decidedly more cautious in its recent commentary, most notably on its interest-rate projections, and this report will give us an in-depth look at the Bank’s evolving view on the subject. Given that our central bankers are no longer using the threat of higher interest rates as a policy tool designed to slow household borrowing, the BoC’s MPR commentary should offer a more unvarnished view than those we have grown used to reading over the last several years.

Five-year Government of Canada bond yields fell by ten basis points last week, closing at 1.65% on Friday. Market five-year fixed rates are still available in the 2.84% to 2.99% range, and five-year fixed-rate pre-approvals can still be had at rates as low as 3.09%.

Five-year variable-rate mortgages are offered at rates as low as prime minus 0.65%, which works out to 2.35% using today’s prime rate of 3.00%.

The Bottom Line: It isn’t every week that we get both a major regulatory announcement and an in-depth view of our central bank’s evolving interest-rate outlook. The Canadian mortgage landscape could look a lot different by the time the Easter Bunny is hiding eggs next Sunday, and we’ll report on both in next week’s update. Stay tuned.

David Larock is an independent full-time mortgage planner and industry insider. Visit his blog for many more interesting articles and some great mortgage advice. 

 

Collingwood and Area Real Estate Barometer April 4-10, 2014

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This market summary includes data for Collingwood, Blue Mountains, Wasaga Beach, Clearview, Grey Highlands and Meaford. The information was obtained from the MLS® statistics provided by the Southern Georgian Bay Association of REALTORS®. Previous week(s) in brackets.

Single Family ResidentialSouthern Georgian Bay Real Estate Barometer
New Listings:  78 (71, 49, 45)
Average List Price: $432,546
Range of List Prices: $129,900 – $1,675,000
Number of Sales:   26 (19, 22, 23)
Range of Sale Prices:  $88,000 – $1,550,000

Condominiums
New Listings:  23 (20, 13, 16)
Average List Price: $294,650
Range of List Prices: $89,900 – $1,075,000
Number of Sales:  13 (7, 10, 3)
Range of Sale Prices:  $95,000 – $470,000

Vacant Land
New Listings:  14 ( 8, 8, 5)
Number of Sales:   1 (0, 1, 2 )
Range of sale prices:  $109,000

Price Changes (up or down):  24

Notable this week:

1 Condo and 1 Single Family listing sold for more than their list prices.

Self Manage A Vacation Condo at Blue Mountain and Generate Cash flow!

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Ext summerHere’s a first.  I have not seen this done so successfully before but, I have just listed a “self-managed” investment condo at Blue Mountain that has gotten me all excited!

Livingroom (1024x683)We get many enquiries from people looking for condos in the Blue Mountain area that they can use themselves and/or rent out short term as an investment property.  This can work well for covering some or all of the operating costs but after paying for property management fees, it’s near impossible to generate a positive cash flow.

The key is “self-managed.”  If you are the type of person who is willing to handle your own vacation marketing and bookings, this unit will get you all excited too.

Located in Mountain Springs Resort, this is really the nicest unit I have ever seen in the development and is quite likely in the very best location too.  Tucked privately into the wooded hillside, it offers ski-in ski-out access to Blue Mountain and has three decks that even give you a view all the way to Georgian Bay.  It has the largest floor plan in the community with 868 square feet including two bedrooms including one in a second floor loft, and two full bathrooms.  It has been beautifully renovated with a modern kitchen, granite counter tops, stainless steel appliances and quality furnishings.  Check out the owners’ rental website here to see more fantastic photos inside and out.Kitchen (1024x683)

The owner really understands that to have a successful vacation rental property, it is essential to offer guests the best possible experience by making sure everything is spotlessly clean, in good working order, comfortable and offers more than a guest may expect.  Little touches such as hair dryers, TV’s in each room, a DVD player, nice dishes and an ironing board are always so appreciated and lead to great reviews and repeat guests.  All of that is found here.

The owner also has perfected the self-management of the rental stays and is willing to share all of her secrets with the new buyer.  I also found this article online which has some good tips.

The bottom line is that revenues keep climbing and there is a positive cash flow at the end of the day.  So if you are willing to invest some of your own time into doing the same, this just might be the opportunity so many have been looking for.  Don’t wait.  You can view the listing details here.

Collingwood and Area Real Estate Barometer March 28 – April 3, 2014

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This market summary includes data for Collingwood, Blue Mountains, Wasaga Beach, Clearview, Grey Highlands and Meaford. The information was obtained from the MLS® statistics provided by the Southern Georgian Bay Association of REALTORS®. Previous week(s) in brackets.

Single Family ResidentialSouthern Georgian Bay Real Estate Barometer
New Listings:  71 (49, 45,39)
Average List Price: $447,695
Range of List Prices: $129,900 – $1,349,000
Number of Sales:   19 (22, 23, 18 )
Range of Sale Prices:  $146,000 – $935,000

Condominiums
New Listings:  20 (13, 16, 5)
Average List Price: $222,605
Range of List Prices: $104,900 – $565,000
Number of Sales:  7 (10, 3, 7)
Range of Sale Prices:  $107,000 – $382,500

Vacant Land
New Listings:  8 (8, 5, 5)
Number of Sales:   0 (1, 2, 2)
Range of sale prices:  $0

Price Changes (up or down):  23

Notable this week:

1 Condo and 1 Single Family dwelling listing sold at their list prices, and one single family sold for more than it’s list price.

March 2014 Real Estate Market Recap For Collingwood, Blue Mountain and Area

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Not surprisingly, sales for the month of March, 2014 in Collingwood, Blue Mountain and area were down by 10% over this time last year and, 12.6% year-to-date.  This was anticipated due to the extreme weather conditions we experienced in the first quarter of this year.

Since the milder conditions arrived just one week ago, we have seen a noticeable increase in the number of showings and enquiries.  There are also a large number of conditional sales pending which should be reflected in stronger sales numbers for the month of April.  In addition, the recent decline in the already low mortgage rates are triggering first time buyers and investors to jump in now.

The biggest frustration I hear from buyers is the lack of choice in the marketplace and it’s true.  While sales numbers are lower, the number of new listings is also down significantly with only 447 new listings in the total area last month compared to 586 in the previous March.

This chart is a summary of activity in the total area our real estate board covers:

Sales Summary

This chart gives a breakdown by the six key areas in South Georgian Bay.  Notice what’s happened to the 12 month average, sale prices in the last year.

March Sales Summary by Area

Here’s how you can own your own home for $950 a month or how investors can get a positive cash flow in Collingwood

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ExtbstAs regular readers know, we own an investment condo in Collingwood that we are quite pleased with. It’s one of the very few places left in Collingwood where it is possible to have a positive cash flow, Kitchen2even after paying the mortgage. It’s an equally exciting opportunity for a home buyer looking to own for less than the cost of renting in Collingwood.

 I’ve just listed a similar condo and the numbers are even better today with current mortgage rates and rents. It’s a tidy, three bedroom, 2 storey townhome with a basement in Shaw Square – an enclave of just 39 units on Tenth Street. It’s priced at just $127,900 and, in addition to the numbers being very attractive, this project has undergone a major upgrade in the last couple of years that included:

- New windows

- New roofs and shingles

- New eavestroughs

- R50 attic insulation! (I think this may be the only development in town that is so well insulated.)

Hrecent 2011 photos 146 summer yard (1024x768)ere’s how the numbers stack up. Assuming a mortgage rate of 2.94% and an amortization period of 25 years, the monthly mortgage payment would be $597.00 a month with just 5% as a down payment. In addition, the monthly condo fee is $229.00 and the taxes last year were $136.00 a month. Add it up and the total comes in at about $950.00 a month compared to rental values of $1,000 to $1200 a month in these units.

For investors with 25% down, the monthly carrying costs are under $820.00 a month leaving a positive cash flow and excellent return on the investment.

The unit I have just listed is an end unit with a modernized kitchen featuring cork floors, contemporary hardware and a breakfast bar, oak hardwood floors, a gas fireplace, fenced yard, 1.5 baths and three bedrooms in 1,000 square feet. Don’t let this opportunity pass you by.

Related Post:

Building a Community One Tire At A Time

 

 

Collingwood and Area Real Estate Barometer Mar.21-27, 2014

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This market summary includes data for Collingwood, Blue Mountains, Wasaga Beach, Clearview, Grey Highlands and Meaford. The information was obtained from the MLS® statistics provided by the Southern Georgian Bay Association of REALTORS®. Previous week(s) in brackets.

Single Family ResidentialSouthern Georgian Bay Real Estate Barometer
New Listings:  49 (45,39, 54)
Average List Price: $529,453
Range of List Prices: $129,900 – $3,900,000
Number of Sales:   22 (23, 18, 19)
Range of Sale Prices:  $165,100 – $725,000

Condominiums
New Listings:  13 (16, 5, 13)
Average List Price: $243,153
Range of List Prices: $121,900 – $519,900
Number of Sales:  10 (3, 7, 6)
Range of Sale Prices:  $149,000 – $275,000

Vacant Land
New Listings:  8 (5, 5, 13)
Number of Sales:   1 (2, 2, 0)
Range of sale prices:  $58,000

Price Changes (up or down):  19

Notable this week:

1 Condo and 1 Single Family dwelling listing sold at it’s list price

Why do We ask Buyers About Themselves Before Arranging A Showing?

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As REALTORS®, we are often asked, “when you call up a real estate salesperson or Broker to book a showing at a listing, why are you asked some questions about motivation, ownership, timing and name and address?  The answer is simple:  we need to get to know you before we show you property.  moving checklist

Typically, as a prospective buyer, you will be asked a few questions to ascertain if you are a qualified buyer.  This is important for us to know, because we want to make sure we’re not wasting your time, or ours.  If, for example, you are unemployed, have no down payment and no means of getting one, and have a poor credit history, the chances are good that you would not be able to get the financing required to purchase a property.  Taking you to see a property wouldn’t be fair to you, to us, or to the seller, who is hoping for a sale.  Often that seller has prepared for hours for a showing, cleaning and organizing and perhaps arranging for child care.  It isn’t fair to them to bring someone through their home who has no chance of buying it, and it’s not fair to you to get your hopes up!

We’ll ask you about YOU.  We need to know who it is that we are meeting, because we’ve never met before.  We need to know your name and some other details such as your phone number and where you live.  We need to be able to contact you in the event that we need to change the time or cancel the showing, as well.  Unfortunately, there have been instances where crimes have been committed during the course of a real estate showing, so it is important that we are able to identify who we have made an appointment with to see the property.

Sometimes we’ll ask if you rent or own your current property, or what your timing is for making the purchase.  Obviously, if a seller needs to have a closing in 6 months because he is building a new home, then selling their current house with a closing in 1 month because you need to buy in 1 month, is not going to work for anyone involved.  There would be no point in showing you their home in that case.  Conversely, if YOU need to sell before buying, we need to know that when we are making choices of homes to show to you.

We will ask you if you are working with another REALTOR®.  This is very important for us to know.  We are required under our provincial and federal regulations to know who it is we are working with, and, if they are working with another REALTOR®.  If you are working with another REALTOR®, then we are obligated to respectfully decline to work with you.

 

 

 

 

 

 

Collingwood and Area Real Estate Barometer March 14-20, 2014

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This market summary includes data for Collingwood, Blue Mountains, Wasaga Beach, Clearview, Grey Highlands and Meaford. The information was obtained from the MLS® statistics provided by the Southern Georgian Bay Association of REALTORS®. Previous week(s) in brackets.

Single Family ResidentialSouthern Georgian Bay Real Estate Barometer
New Listings:  45 (39, 54, 42)
Average List Price: $413,399
Range of List Prices: $93,555 – $1,189,000
Number of Sales:   23 (18, 19, 11)
Range of Sale Prices:  $178,000 – $1,000,000

Condominiums
New Listings:  16 (5, 13, 6)
Average List Price: $270,125
Range of List Prices: $102,000 – $924,900
Number of Sales:  3 (7, 6, 5)
Range of Sale Prices:  $149,000 – $345,000

Vacant Land
New Listings:  5 (5, 13, 11)
Number of Sales:   2 (2, 0, 1)
Range of sale prices:  $22,500 – $161,000

Price Changes (up or down):  23

Notable this week:

1 Vacant Land listing sold at it’s list price

1 condo listing sold at it’s list price

1 Single Family Residence sold for more than it’s list price

RE/MAX four seasons realty limited, brokerage  ♦  67 First Street Collingwood, ON L9Y 1A2  ♦  705-445-8500