Blog Archives - Page 3 of 5 - Dean Manton RE/MAX Real Estate Centre

Category: Blog (47)

Apr

COVID-19 SAFE REAL ESTATE

COVID-19 Safe Real Estate

After approximately a month and a half of lock down there are signs that the real estate market is starting to heat up again. Anyone who was in the market in early March will remember an extremely active real estate market with most homes attracting multiple offers and selling well over asking price.

Around mid March social distancing and quarantine protocols started to affect the real estate market although it didn’t shut down completely. Buyers who needed to buy and sellers who wished to sell still bought and sold properties. Sale prices were slightly below asking price for the most part with the occasional home still selling over asking price. The number of sales went down 70% compared with the year before but prices remained stable.

The pent-up demand for homes left over from early March is still out there and as the province gradually opens back up, you can expect the real estate market to get busy again. It will not be business as usual however. The new number one job for Realtors will be to keep buyers, sellers and each other safe and brokerages who are prepared for this new reality will hit the ground running.

Thanks to the leadership at RE/MAX Centre I am proud to offer my clients a comprehensive package of COVID-19 protocols designed to keep them safe. This week we launched our SAFE HOME SHOWING KITS. Exclusive to RE/MAX Centre, factory sealed and individually packaged in a sterile work environment, each kit contains 3 masks, 3 pair of gloves, 3 pair of shoe coverings and sanitary wipes. When a home visit is absolutely necessary, the SAFE HOME SHOWING KITS are designed to keep you and your family safe.

Our additional safety protocols include;

Virtual showings and consultations

Pre-list Home Inspections

Interactive Virtual Tours

Digital Floor Plans

Electronic signatures

Health Screening for home visitors

Remote closing

These safety protocols will significantly reduce the need for physical visits to your home but in the event that a visit is necessary, prior to showing your home, any agent must fill out a form confirming they have reviewed a Health Questionnaire with their Buyer(s) as well as the Agent themselves. If the Health Questionnaire discloses any COVID-19 health concerns, the parties will be instructed not enter your home. If the showing is confirmed, visitors will be required to use the SAFE HOME SHOWING KIT.

If you have concerns that are not addressed by these safety protocols, I would be happy to discuss how we can customize them to satisfy your concerns. I look forward to getting your home sold while taking every precaution available to protect your safety.

Sincerely,

Dean Manton Broker

Dean Manton is your real estate expert. Put Dean’s 22 years of experience and market knowledge to work for you!

Apr

Real Estate and COVID-19

To my friends and clients,

I’ve been wanting to reach out to you for a while regarding what’s happening with real estate and COVID_19 but things have been changing so rapidly, it’s been difficult to pick the right moment. These last couple of weeks I’ve been staying at home with my family and trying to stay safe. I hope you have too!

Recently real estate was designated as an essential service. This is because we need to be able to close deals that are already firm as well as help people who still need to buy or sell real estate. This could be because of a job transfer, relocation, financial challenges or any number of other reasons. It has also recently become clear that COVID-19 isn’t likely to blow over in a couple of weeks. While most of us will be able to stay safe in our homes until life returns to something closer to normal, there will be others that have to sell, rent or find a home. As a Realtor, it’s my job to help these people if I can.

Keeping buyers, sellers, the general public, and myself safe while carrying out my duties will be my number one concern. Using technology, it’s possible to do many things remotely and should physical meetings be necessary, my brokerage has developed strict protocols to keep people safe.

The worldwide COVID-19 spread has some people questioning whether now is a good time to buy or sell a home. My answer is that it may be, depending on your immediate needs. If you need to sell now this may be a good time because of the low housing inventory we are experiencing in our market. As for Buyers, interest rates are at an all time low. While we are seeing an overall slowdown in the economy due to the virus, the real estate market has continued to be resilient. If you need to sell now, there are still many buyers in the market that need to purchase a home. The health concerns may reduce home inventory even more – this may be a good thing for people who need to sell.

If you don’t need to sell now and are concerned with potential health risks, then please exercise your option to wait and I will be in regular contact as to market conditions and, more importantly, health conditions. In an effort to protect our clients and the public as a whole, we are implementing new safety protocols that I would be happy to discuss with you and customize to satisfy any concerns that you have.

I recommend that you and all members of the public go to Canada.ca to receive updates on COVID-19 and to understand the health risks to all.

If needed, I look forward to helping you while taking every precaution available to protect your safety. Please don’t hesitate to contact me if you need some advice or just want to chat. In the meantime, stay safe.

Sincerely,

Dean

Dean Manton is your local real estate expert. Put Dean’s 22 years of experience and market knowledge to work for you!

Feb

Housing Affordability in Kitchener Waterloo

Kitchener-Waterloo real estate prices have been on a steady incline in recent years, so it’s little surprise that the city’s housing market ranked #11 of 16 Canadian cities when it comes to housing affordability, according to the 2020 RE/MAX Housing Affordability Report. However, cost-conscious home hunters in search of a good deal can still find one in the communities of Country Hills, Lakeshore and Westvale, which have been named the most affordable neighbourhoods to buy a home in Kitchener-Waterloo.

Factors contributing to Kitchener-Waterloo real estate prices

Kitchener-Waterloo real estate prices have been on the rise, experiencing an eight-per-cent increase from 2018 to 2019, and another seven-per-cent increase expected in this year (source: 2020 Housing Market Outlook Report). This is a contributing factor in the region’s ranking as one of Canada’s less-affordable housing markets, according to the new RE/MAX Housing Affordability Report.

In its inaugural Housing Affordability Report, RE/MAX examined 16 of Canada’s most-populous regions and ranked them on an affordability scale, with #1 being the most affordable and #16 being the least affordable. RE/MAX brokers were surveyed about average home sale prices and whether they believe real estate in their region is overvalued, undervalued, or right on the money. Kitchener-Waterloo real estate came in at #11 of 16 cities. Canada’s most affordable city to buy a home is Regina (#1) and the least affordable place to buy a home is Vancouver (#16).

RE/MAX’s affordability ranking was determined by assessing the percentage of a buyer’s monthly income needed to carry a mortgage, assuming a down payment of 25 per cent, and based on the forecasted 2020 average sale price per region and the forecasted 2019 average household income.

Kitchener Waterloo real estate is currently classified as undervalued, with an average sale price of $527,718. The region is attracting high-valued employers in the tech sector. This, coupled with two world-renowned universities, is credited with Kitchener-Waterloo’s continued growth, in lockstep with the job market and wages. However, due to the booming job market and an influx of immigrants coming to the region, Kitchener-Waterloo is experiencing a housing supply shortage. This has put major pressure on local government and builders to try and keep up with demand.

First-time homebuyers in Kitchener-Waterloo commonly seek out apartment-style condominiums, which have a typical entry-price range of $350,000 to $500,000.

At the high end of the affordability spectrum, the region’s least affordable neighbourhoods include Westmount, Old Beechwood and Laurel Wood.

Despite the commonly held notion that housing in Canada is unaffordable, the report finds that the vast majority of Canada’s largest urban centres (75 per cent) are currently undervalued, according to a survey of RE/MAX brokers in 16 of Canada’s most-populous cities.

In its report, RE/MAX explored the most popular property types sought by first-time homebuyers, the least and most affordable neighbourhoods in each of the 16 housing markets, factors preventing buyers from entering the market, and methods homebuyers are using to enhance the affordability of homes. Current and prospective Canadian homeowners were also surveyed about their sentiments around home ownership, barriers to owning a home, financial factors impacting home ownership, and what could potentially improve housing affordability.

Feb

This is not a good sign

The Toronto housing market is picking up steam at an “uncomfortable” magnitude, one that resembles the sky-high gains of 2016 which subsequently led to a slew of regulatory measures to tame markets, according to a new report from RBC Economics.

“It’s looking more and more like early-2016 all over again. This is not a good sign,” wrote RBC senior economist Robert Hogue.

According to recent data from the Toronto Real Estate Board, January saw the largest month-over-month price increase since October 2017, with the average selling price increasing by 12.3 per cent year-over-year. New listings, meanwhile, were down 17.1 per cent compared to last year.

‘This is not a good sign’: Toronto housing price surge resembles sky-high gains of 2016

Jan

Real Estate 2020. What to Expect

Real Estate 2020. What to expect

South western Ontario is set to experience a strong housing market in 2020. Lower unemployment rates, economic growth, and improved overall affordability in Guelph, Kitchener Waterloo and Cambridge are expected to drive the market forward. Here’s what to expect from the real estate market in the coming year;

A seller’s Market

After approximately two years of softer sales following the introduction of the federal mortgage stress test, the demand for homes started to noticeably increase in the second half of 2019. Many buyers who pulled out of the market because of the new mortgage stress test were lured back by low interest rates.

You can expect this trend to continue well into 2020. In its most recently revised forecast, the Canadian Real Estate Association expects the number of sales to increase 6.2% from 2018, and then climb to an increase of 8.9% next year. The estimated average sale price increase for 2020 is forecasted as roughly seven per cent for Guelph, KW & Cambridge.

If you’re planning to purchase a home in 2020, you will face a challenging market. A Low inventory of homes for sale at the beginning of the year and growing demand set the stage for bidding wars and a sharp rise in home values over the year. Should undersupply persist, prices could skyrocket as in 2016.

Mortgage Rates Will Remain Low

The Bank of Canada has kept mortgage interest rates relatively low and stable for the entirety of 2019 and as a result, banks and credit unions were able to keep their variable mortgage and line of credit products competitively priced. Because of this, borrowers have had access to some of the lowest mortgage rates on record. This is likely to persist throughout the new year, according to the BoC and that is good news for Buyers!

It Could Get Easier to Qualify

Recently a letter from Prime Minister Justin Trudeau indicated Federal Finance Minister Bill Morneau will take a second look at the controversial stress test’s criteria, and potentially make changes to allow for more flexibility when qualifying borrowers. While details have yet to be released, this could include lowering the qualifying rate or making it more dynamic based on individual borrowers’ profiles.

I expect the 2020 real estate market to get off to a fast start in the early part of the year with the investor market and then build as we get closer to spring. I advise buyers to start early and not wait until spring to start looking for homes because by then the competition should be fierce. Because of low inventory, sellers can expect to attract a lot of attention with properties in all market segments. Good luck! It’s going to be an interesting year!

Dean Manton is your real estate expert with over 20 years experience helping buyers and sellers in Guelph, KW, Cambridge and surrounding areas. Put Dean’s experience and market knowledge to work for you!

Nov

RE/MAX 2020 CANADIAN HOUSING MARKET OUTLOOK

Canadian housing market looks bright in 2020 as markets stabilize, consumer confidence returns

ONTARIO

Toronto is set to experience a strong housing market in 2020. Lower unemployment rates, economic growth, and improved overall affordability in the Greater Toronto Area are expected to drive the market forward. The estimated average sale price increase for 2020 is six per cent. The city saw 76,413 transactions in 2019, up 12 per cent from last year (68,064). While Toronto is experiencing its “busiest” construction season ever, housing supply still falls short of the demands of the city’s rapidly growing population. Cities such as Ottawa and Windsor are seller’s markets, showing substantial increases in average residential sale price at 11.7 and 11 per cent, respectively. This strong growth is expected to continue into 2020, with Ottawa’s new LRT system impacting surrounding development and Windsor’s continued affordability attracting young professionals to the area. Buyers are also not burdened by the mortgage stress test, as they were in 2018. The Niagara region is also showing strong growth, with average residential sale price increasing almost 13 per cent, from $378,517 in 2018 to $427,487.50 in 2019. Value conscious consumers from the Greater Toronto Area area buying in droves, with many choosing to live in the region while commuting to Toronto. Seller’s markets dominate the province.

Dean Manton is the real estate expert for Guelph, Kitchener-Waterloo, Cambridge and surrounding areas. Put Dean’s 20+ years of real estate experience to work for you!

Apr

The Spring Market is Underway!

After Ontario’s housing market saw dampened activity in the second half of 2018. Existing home sales are experiencing a partial recovery so far in 2019. Buyers are re-entering the market and a robust spring market for Guelph and area is underway. Spring market conditions usually include homes attracting multiple offers and selling for full price or more. I’m encountering multiple offer scenarios on most of the properties that I’m putting offers on. While this isn’t nearly at the level that we experienced in 2016, when we saw homes selling for $100K over asking price, sales for $20K to $40K over asking are not uncommon.

In this type of market buyers need to be prepared to make the best offer they can in order to win the day. While offering the most money is a good way to ensure a successful bid, offers with no conditions are also popular with sellers. It’s also becoming common for buyers to write a letter about their family, sometimes with pictures, to the sellers in order to make their offer seem more personal. Offers that combine an attracting price, no conditions and a personal touch have a good chance of success.

Guelph had 193 sales in March which was up just slightly from March of last year 185. The average sale price for a home in Guelph last month was $516,075. In March 2018 the average sale price was $510,878. Properties were selling quickly as the average days on market for MLS sales was 15 days. That’s not much different from last year when it was 13 days. The average price per square foot for Guelph resale homes was $367 per square foot. Sellers 99.2% of their asking price on average in March and 41% of homes sold for full price or more.

At the beginning of April there was 1.5 months worth of inventory for sale based on current sales levels. This isn’t a lot of homes for a busy spring market. Hopefully the warmer weather will bring forth more homes to market.

Buyers: the key to success in a spring market is preparation. Have your financing approved. If you want to do a home inspection, use the time that you’re waiting for offers to be presented. Good offers with no conditions will get the seller’s attention.

Sellers: your key to success is preparing your home for sale. Making sure your home is attractive to buyers will get you half way there. The right pricing and marketing will get you the rest of the way.

Dean Manton is Guelph and area’s real estate expert. Put Dean’s experience and market knowledge to work for you! #my21styear

Jan

Guelph Has Jobs!

Guelph has jobs! The Bank of Montreal’s Labour Market Report Card for the fourth quarter of 2018 ranked Guelph’s 2.3 per cent unemployment rate as the best labour market in Canada. By comparison, Guelph’s unemployment rate was at 6.2 per cent in December 2017 and at 7.3 per cent five years ago in December 2013. In fact, historical data provided by Statistics Canada that goes back to March 2001 shows Guelph’s unemployment rate has never been recorded as this low.

When consumers are working, they buy real estate so local demand for homes should be strong for 2019. Combined with the ever-present demand from GTA buyers, the Guelph real estate market should be stronger than the “balanced conditions” that are forecasted for much of the province. The investor market is off to a great start with many student rentals and other income producing properties selling over asking price so far in January.

The average Guelph resident will have slightly less purchasing power in 2019, due to new mortgage stress tests and growth in wages not keeping up with the increase in carrying costs for the average home. However, resale homes in Guelph will be relatively affordable compared to the overall province and within grasp for the average income earner. Demand for Guelph homes should remain strong.

Dean Manton is Guelph’s real estate expert. Buying or selling, put Dean’s 20+ years of experience to work for you!

Jan

Guelph Market Update January 2019

Guelph market update January 2019

After what turned out to be quite a volatile year in real estate in 2018, the key word for 2019 is STABILITY.

In the last few years, sellers have enjoyed the upper-hand in the market. Properties that were reasonably priced sold quickly and often buyers were forced to compete and pay well over the asking price. There are still some hot spots in the market especially lower-priced homes or condos under $500K. That’s because of the demand from three groups: first-time buyers; real estate investors; and those who are down-sizing. The market for homes that are $500,000 and up will be more balanced, favouring neither buyers or sellers.

Guelph’s 2018 real estate market finished with a bit of an upswing but there are two converging trends that should give the housing market an additional boost in 2019. The unemployment rate is at a historical low and when people are working, they are buying. The Bank of Canada is also expected to keep interest rates steady into 2019 because the prospect for inflation is low (have you seen the cost of gas lately?).

A BALANCED MARKET IS A GREAT OPPORTUNITY TO ENTER THE MARKET, UP-SIZE OR BUY THAT INVESTMENT PROPERTY THAT YOU’VE BEEN CONSIDERING!

I expect the Guelph and area real estate market to gradually pick up steam as spring approaches. January to March will be an excellent time for buyers to take advantage of the kind of market that we haven’t seen for a while, SANE. Sellers expecting to put their home on the market and be immediately inundated by offers may be disappointed. The key for sellers will be to make sure their homes are well presented, well priced and properly marketed.

Whether you’re buying or selling in a balanced market it’s critical that you have the advice of an experienced Realtor. If you’re planning to make a move in 2019, let’s get together and discuss your strategy!

Dean Manton is Guelph and area’s real estate expert. Buying or selling, put Dean’s 20+ years of experience to work for you!

Dec

Choosing a Realtor With Experience

Choosing a Realtor to assist you in buying or selling a property can be a daunting task. After all, there are literally hundreds of Realtors in every city to choose from, all offering seemingly similar services at comparable commission rates. How do you decide? Hiring the right Realtor is the key to a successful and stress-free buying or selling experience. Your Realtor is of course, there to help you achieve the best price and terms in your transaction but also to advise you while you make important decisions that may impact you and your family for years to come. Your Realtor is there to protect your interests and help you avoid legal trouble in connection with your purchase or sale. Only a Realtor with vast experience can achieve all of that.

New Realtors come out of real estate school with a brain full of real estate knowledge and very little idea of how to actually apply that knowledge in a real-life situation. Those skills require on-the-job training. Realtors learn to sell real estate by selling real estate! When the average Realtor sells six properties per year, you can imagine how long it takes for them to acquire enough experience to be an effective agent. We’re talking decades!

I witness inexperienced agents on a regular basis who leave their client’s money on the table because they don’t have the confidence to properly negotiate or put their clients at risk because of their lack of experience. Part of meeting new prospective clients is hearing about the lousy service or bad advice that they received from the agent they used previously. I’ve heard some incredible horror stories!

An experienced agent can;

Offer solutions based on previous results

Anticipate and avoid problems before they occur

Enjoy solid relationships with other agents

Have strong negotiation skills

Understand the complexities of changing real estate markets

Provide perspective on statistics and crucial market data to clients

Confidently guide clients to smooth closings

Any agent in town can offer you a marketing plan, virtual tour and a sign on your lawn but not every agent has the experience to guide, advise and protect you through the largest financial transaction of your life. The most important and valuable thing that your Realtor can offer you is experience.

Dean Manton is Guelph and area’s real estate expert. Put Dean’s experience and market knowledge to work for you!