Making sense of any market is difficult at the best of times but because of the lag time in reporting sales that are firm or sold conditionally, a chrystal ball can come in very handy….

Here is what I have noticed:

• There are a lot more houses on the market for sale.
• Showings have subsided but Open Houses are still quite busy.
• The number of sales has decreased leaving a lot more listings for buyers and hence a lack of urgency.
• Where move-up Buyers would have offered before selling, they are now holding back till their own property sells.
• The houses that are moving first have the most amenities: Parking, Schools, Garages, High-end Finishes etc.
• Sellers have to be calm, price realistically and manage their expectations.
• Sales are still happening, fewer with multiple offers, but they are happening.
• People are confused about the HST and think wrongly, that it is payable on resale housing. It is only payable on the services used during the sale of resale housing.

The difference in Today’s market is this:

• There was a shortage of listings in the market place from October 2009 till February 2010 contributing to a pent up demand this Spring.
• There is a strong ”Baby Boom” affect. A lot of Today’s Sellers are changing their lifestyles moving to apartments or to their Country properties. They are responsible for the spike in listings…
• Today’s Buyers are “surfers”, used to surfing Television, the Internet and Open Houses. They don’t want to see property by appointment but surf Open Houses on the weekends…

What does it all mean?

• More listings, giving Buyers more choice.
• Patience is needed if you are a  Seller or Agent.
• Buyers need to get their “ducks in a row” in terms of financing and deposits.
• Pricing can only be based on the value of the home, not the plans that you have for the money after you sell…

The reality is that most Spring markets are similar and that a market is a market: Prices go up and down, activity changes slowly at times and quickly at others… first and foremost your house is a HOME where you, your family and friends enjoy company, entertain and share your hobbies.

At the end of your life will you be thinking about the money you made in Real Estate or the great times you had in the home that you loved.

I am sure you have some thoughts so feel free to comment…

I love lawyers, some are great friends and clients…but when they talk “Lawyer Language or Legalese“, they speak in a language that is hard for most to decipher. It sounds more like “Gobbledygook”.

Then…they write contracts…contracts that you should be able to understand when you are making the largest purchase of your life. I have studied and dealt with contracts daily for years but am hard pressed at times to explain contract law and the rhetoric used. It should make sense and be in plain language.

A few years back the Toronto Real Estate Board created a consumer-focused web site with a special area where you can view a few of the main contracts that Buyers and Sellers use when they enter into agreements. Each clause of the contract is the explained in “Plain Language” in red followed by the clause.

This is a popular and great tool for potential Buyers and Sellers and there is also other good consumer information in that area. If you are thinking about getting into the market, you should read through them and if you have any further confusion or need clarification, please contact me. I’m happy to help.

Just as it is important to have a great Mortgage Broker who you can depend on, I have also been very lucky to know one of the best minds in the Toronto Real Estate appraisal business, Barry Lebow. Barry is not shy about giving you his thoughts so I asked him for some suggestions for Sellers and Buyers in Today’s Real Estate Market:

Sellers or Home Owners:

“For someone who is worried about their home ownership one way to get a leg up is to finally think of finishing that basement into a rental unit. Let’s face reality, most people who rent a unit in their home do not add that income into their income tax. I am not advocating cheating on taxes I am observing that it is the norm. So, if someone was at a 30% tax bracket and getting a basement rental income of $850 a month it is as if their income increased by another $13,000 a year. Yes, there are more utility costs to deduct but overall, renting and keeping one’s home makes a lot of sense. 

Even a small thing, like having that rare garage in the city core that you have filled with junk or do not use, it can bring in tax free income as there are many people who want private winter storage for their prized vehicle.”

For Buyers and Sellers who become Buyers:

“We have experienced a downturn in the economy at the same time that we traditionally experience a downturn in real estate, the months of December and January. Real estate activity in the hottest years falls off during these months. For people fence sitting, there should be some good deals out there and for people wanting to move up, even better.”

When markets shift the worst thing you can do is nothing. Opportunities are in every market, whether you decide to stay where you are and renovate, or take advantage of a slower market to buy.”

In either case, feel free to contact me and we will talk Real Estate.