‘Tis the season to be jolly, fa-la-la-la-la-la-la-la.

This is such a fun time to be in the real estate business in Milton! I say that because homeowners now, almost more than ever, need a local expert who knows what is really going on in the market in order to maximize the value that they have in their house.

What you as a homeowner do not need is someone who wants to make themselves look good by listing the house too low and hoping for multiple offers. Sure, multiple offers can be a good thing. However, they can also be a not-good thing. Might you want to know why pricing low is not necessarily in your best interests? Call me and we’ll sit down together and talk about it.

Meanwhile, here’s this week’s Total Market Overview:

I think of my friends in real estate in the USA, and how they would love to have a market where 25% of the available inventory sells in a week; yes, we are blessed indeed. And yet, even though real estate agents are negotiating record high prices for sellers, and even though a seller listed with an agent will net approximately $10,000 more than when they sell privately, I still see all these private sellers out there. I guess they haven’t been introduced to the idea that they can make more money by listing their house with an agent, and avoid most of the hassles and time-wasting at the same time.

Here’s the Annual Summary Table – scroll up and compare this week and the same week last year:

25% of the available listing inventory compared to last year; 3-times the number of sales compared to last year. Same song as the last few months. Where will it go from here?

Here’s the same information in a graph:

And here’s the Absorption Rate information:

So, based on the information above, if no other homes come on the market, there will be no homes left for sale in a mere 4 weeks! Anytime that number is less than 20 weeks, we are in a Seller’s market; when it is more than 28 weeks, we are in a Buyer’s market.

Here’s the Absorption Rate in a graph:

Here’s the latest news reports from Keller Williams Realty.

Recent Notable News

Canada’s Recession Officially Comes to an End

As the third quarter’s GDP numbers come in, they show an official end to the recession. Although the positive 0.4 percent growth is less than the 1-2 percent expected, it is nonetheless a positive sign. In terms of unemployment and GDP decline, this recession was less severe than those of the early ‘80s and ‘90s. The less-than-expected growth also signals that this may very well be a slow recovery and, like many of the other countries emerging from recessions, Canada is not fully out of the woods.

The concerns largely remain unchanged–unemployment and the still high currency value. A strong Canadian currency makes spending domestic dollars abroad or on imports more enticing because they are now cheaper, but it also sends the economic benefit of that purchase abroad rather than keeping it at home. It also makes Canadian goods more expensive for other countries to import, and this is a major component of Canada’s economy. A concern that has more recently cropped up is that the cheap and readily available credit could be creating asset bubbles in gold, housing, and some other financial products.

The strength of the domestic economy has “saved the day.” Because the credit problems that plagued many other major nations were not largely seen in Canada, it has allowed it to take advantage of the low interest rates in ways that other countries could not. This has helped stir a rapid and dramatic recovery in the housing market and will likely have a spillover effect, as the new homeowners purchase new items for their homes and complete renovations. It has also helped spur a surge in personal and in business investment not seen since 1997.

Credit Card Guidelines

Finance Minister Jim Flaherty has issued a new, voluntary code of conduct for credit and debit card companies. If not widely adopted, the code may become government regulations.

The initiative intends to promote fair business practices by creating transparency for merchants and consumers to clearly understand the costs and benefits of the cards. The fees credit card companies charge merchants can vary widely, and this announcement now comes after years of consumer groups and businesses voicing concerns that the disparity of fees can cause unpredictable harm to the bottom line.

The code will be on a sixty-day consultation period where credit card companies and businesses alike will have the opportunity to provide feedback before the code goes into effect.

Topics for Home Buyers and Owners

5 “End of the Year” Tax Tips

Fix up the house. The deadline for the home renovation tax credit (HRTC) is coming up quickly. It’s a 15 percent tax credit and applies to purchases between $1,000-$10,000 for a maximum of $1,350. Materials must be purchased in 2009 but can be installed in 2010, but only labor completed in 2009 may be counted.

Contribute to your children’s education. If your child or grandchild doesn’t have a Registered Education Savings Plan (RESP) and they turned 15 in 2009, the last chance for them to get in is December 31, 2009. By contributing at least $2,000 this year, they will be able to collect a 20 percent Canada Education Savings Grant for 2009 and be eligible for 2010 and 2011. Missing this year’s deadline will make them ineligible for the next two years as well.

Donate. Donations must be made by December 31 in order to get a tax receipt for 2009.

Contribute to a registered disability savings plan. This tax-deferred plan is open to residents that are eligible for the Disability Tax Credit, their parents, and other eligible contributors. A maximum of $200,000 can be deposited and there are no annual limits. Contributions in 2009 may be eligible for the 2009 Canada Disability Savings Grant and the Canada Disability Savings Bond.

Splurge on office furniture. Even if you purchase at the end of the year, you can still take half a year’s depreciation on new office equipment and furniture for small business owners and self-employed. Computer equipment purchased between January 27, 2009 and January 30, 2011, can be written off 100% in the year it is purchased.

So, before you see the numbers, do you think we’ve entered the traditional December slowdown period yet? Milton Ontario Real Estate usually slows right down, although far less that in the 1980′s & 1990′s.

Here’s the chart for the Total Market Overview, by price range:

As the chart above reveals, the number of sales has indeed slowed in comparison to the last couple of weeks, and the average price range of activity is much lower. Comparison to the same period last year might tell more of a story?

Nope – the number of listings year-over-year is down by 330 properties, but the number of sales is up by 50%. Not only that, the average price is up by 30%, so I think it is safe to say that milton ontario real estate is still thriving.

But what about the absorption rate?

Obviously, there’s still a pretty dire shortage of listings. It is always interesting to me that whenever there is a shortage of listing, more and more people decide to sell themselves. I give them full credit for trying, I really do. What I don’t understand is why they go and spend $1,000 on one of those companies who does nothing for them, and then in 3 weeks, list with an agent. I don’t understand, from a financial standpoint, why people sell privately when national statistics show that people who use a Realtor sell for an average 11% more. However, it is their right and I respect them for wanting to try it.

Finally, here’s the graph of the Annual Summary of Weekly Numbers:

Because we’re near the month end, there’s a whole lot of information in this post about the milton ontario real estate market, with my commentary sprinkled throughout.

I’m going to start off with the monthly summary, as released by the Oakville, Milton, & District Real Estate Board:

As you can see, and regular readers will have known for some time, all of the numbers except available listings, are up substantially over 2008′s numbers. That’s a double-edged sword, depending what side of the fence you are on – buyer or seller.

Next, I’ll show you the monthly averages, by house type. In these charts, DOM signifies Days on Market, or the number of days a property takes to sell from initial listing date to the date all conditions are removed from the offer.

This first table shows numbers for Condo Apartments in Milton Ontario:

Next, Condo Townhouses:

Next, Freehold Townhouses / Row Houses:

Then comes Semi-Detached Houses in milton ontario:

And finally, Detached & Link Homes:

As you can see, the market is significantly better for seller’s this year compared to last, and for buyers, the ‘better’ part comes from the low interest rates.

Here’s this week’s Total Market Overview:

You’ll notice the price range of $0 to $240,000 has a very long average days to sell – that is completely skewed by one property that was on-&-off the market for a few years.

Here’s the Annual Summary of Activity:

and the graphical representation:

GREAT numbers again this week, as is backed-up by the Absorption Rate information:

WOW – Same-Week 2008 we had a 47 week supply of houses compared to a 3-week supply of houses!

I’m switching over to a new format for market reports in January – a service provider will be compiling the information for me, while we will both be providing analysis; him from a technical standpoint and me from an in-the-trenches viewpoint.

As always, your comments are most welcome!

Yes, it’s that time again – time to do the numbers and see where we’re at in milton ontario real estate this week. It’s been a fairly quiet week in the market, with sales being down about 35% over last week, while available inventory is up 10%. The average price this week is up over last week, by about 9%. Comparing the numbers to the same time last year, the number of available listings is down by 80%, the number of sales is up by 25%, the average sale price shot from $277,000 to $440,000 and the days to sell dropped from 38 to 15. The average list-to-sale ration also rose by 2% over last year!

So, to what do we owe these big changes? Well, last year, the US was really mired in their financial meltdown, and Canadians were only in the beginning stages of holding back their moving plans, as is evidenced by the fact that we had a more normal 545 houses on the market. Another factor would be that the discounted 5-year mortgage rate is down by approximately 1.5% over 12 months ago. That equates to a saving of about $200 per month for every $100,000 borrowed, which is a huge jump in purchasing power. Another factor is that it is somewhat easier to borrow right now than it was 12 months ago. However, I think the overarching factor is probably that the Canadian psyche is feeling better, having had a year to see what cross-border effects the US meltdown will have.

Here’s the annual summary of Milton Ontario real estate activity:

And the same information in graphical format:

The Absorption Rate – this chart will be very revealing over the next few months, as we move through the holiday season and people begin planning their Spring move:

Remember when reading the chart above that the ‘Absorption Rate – Weeks’ column refers to how many weeks it would take for every house on the market to sell at the current rate of sales and no new properties coming on the market.

Here’s the same information in graphical format:

And finally, the milton ontario real estate market total weekly overview of activity by price range:

As always, if you have any questions about any of the information, please call me at 905-878-4444 and I’ll be happy to discuss how your home fits into the market, or to answer any questions you might have. I’d love to read your comments on my thoughts about why the market is the way it is right now.