Another installment from Keller Williams Research . . .

Note that the 5.25% rate they refer to is the posted rate; available rates are around 3.5%

Don’t know about the spelling, but that’s the name of a song that was featured in the movie ‘Walk The Line’.

Folks, time’s-a-wastin’ on the opportunities in this market! A few months back, I wrote about how this market is a limited opportunity, sort of like the sales that car dealers have – limited opportunities. We are still in a ‘Perfect Storm’ of a real estate market, a never-before-seen convergence of reduced prices, lower rates than in history, and when it costs more to rent than to buy. It won’t last; it can’t, because as more and more sellers see the activity in the market, then more and more buyers will wake up and smell the roses, and then we’ll be in serious bidding wars again.

You just have to follow the conversations on FaceBook and Twitter, Active Rain and a few other places where Realtors gather, to get the picture of what is happening in the Canadian real estate markets. Scroll down a few posts and look at the charts in ‘This Month In Real Estate Canada’ and you’ll see what is happening.

Here’s a snip from a great post on http://Active Rain.com :

My little sister called me the other day and in an excited voice declared, “I think I might need to look at houses…It’s a GREAT time to buy a house right now, you know!”

After the pregnant pause ensued (the one where my condescending big sister brain struggled with my professional Realtor brain) I finally said, “No? Really? What makes you think that?” (You can tell which brain won out.)

“Well. I have a friend who just got a fantastic deal on a house and I think it might be time for me to think about looking!”

Ok, so which part of what I have been saying for months now did she mis

s? Apparently, the same part that ALOT of buyers are missing…that would be the part that sounds just like Charlie Brown’s teacher talking whenever somebody you aren’t listening to tells you something: Wah, wah, wah, wah…

Read the rest here

I’ve written before about the sort of herd mentality that surrounds buyers – when not a lot of people are buying houses, buyers seem to think the prudent thing to do is wait, because, after all, if it was a great time to buy, wouldn’t everyone be buying? Well, when everyone else is buying, prices go up, bidding wars ensue, and all the buyers lose. If that sort of buying is your preferred style, then I’ll be more than happy to help you. But if getting a great house at a lower price and at historically low interest rates is something that appeals to you, call me TODAY and let’s see if you can get in on this before it’s too late.

I know that a lot of people are worried about their jobs, but it costs less to buy than to rent, so unless you plan on living in your car when you lose your job, that’s really not a reason to wait.

The prize goes to those who take action. The action you need to take is to call me today at 905-208-7002

Canadian Housing Market Firming,
Government Support Remains Strong

While buyers absorb inventory and demand remains intact especially among first-time buyers, industry experts envision a continual shift to a more balanced market in the coming months. Home prices, which firmed in late winter, remained lower compared to last year but are showing clear signs of a potential rebound. With inventory levels still somewhat high, builders are proactively adjusting by slowing new residential construction starts, which now stand at their lowest level of the decade.

Spotlighting an interesting trend in the condo market, research suggests many of Canada’s older baby boomers and younger eco-boomers hold a preference for condos.

The low maintenance and smaller footprint are compelling points for the older generation, while the more affordable prices serve as an entry point for an aspiring younger generation of homeowners.

In a welcome surprise, April’s employment numbers showed an unexpected addition of nearly 36,000 new jobs compared to the anticipated loss of 50,000.

While this news is encouraging, the potential for future weakening in the labour market still poses a risk to overall housing demand.

Canada’s government remains firmly focused on supporting the housing market. The Bank of Canada cut the overnight rate to a record low and has made a commitment to keep rates at this level until mid next year. A commitment of this nature is unprecedented among central banks.

The Numbers That Drive Real Estate

1. Sales
2. Prices
3. Inventory
4. Mortgage Rates

According to the most recent data, existing home sales increased for the second month in a row. Home sales increased 7%, which built on the 10% gain the month before. The number of sold transactions now stands 18% above levels reported in January, when activity fell to the lowest level in a decade.

The monthly increases in activity were the most significant in British Columbia and Ontario. Sales were also up in the Northwest Territories, Manitoba, Quebec, and Newfoundland and Labrador.

Buyers are starting to take notice of lower prices, interest rates, and rising affordability conditions.

Average Home Price (in Thousands)

The pace of home price declines is tapering which is providing some glimmer of stabilization in the housing market. Home prices increased 2% from the previous month but is down 8% from the same time last year, which is the smallest year-over-year decline in six months.

The average home price currently stands at $288,641. The national average price continues to be skewed downward by lower activity in Canada’s more expensive housing markets, i.e., British Columbia, Alberta and Ontario which accounts for 67% of national activity. 7 out of 12 provinces and territories actually saw price increases.

Home Prices by Province
7 out of 12 Saw Increases

Inventory (Sales to Listing Ratio)

Market conditions moved toward balanced conditions due to increase in demand and fewer new listings. In the first quarter of 2009, there were 6% less homes entering the market compared to the previous quarter, which represents three consecutive quarters of declines in new listings.

Mortgage Rates

Average for: 25-Year Amortization,5-Year Term

Bank of Canada lowered its overnight lending rate to the lowest rate on record. As a result, mortgage rates decreased to 5.25% last month. Mortgage rates were 1.7 percentage points lower than the same time last year.

Recent Government Action

Bank of Canada Makes Historically Unprecedented Move

In an effort to stimulate the economy, the Bank of Canada has come to yet another historic cut in its interest rate policy on April 21. The Bank cut the overnight rate from .5 to .25%. This rate cut mostly influences traditional lending institutions but should also impact pricing in open markets as well.

The Bank has committed to keep rates as is until mid-2010. No known central bank has ever committed to anything of this nature, illustrating the Bank’s firm commitment to supporting the economy.

The latest from Keller Williams Research . . . (best viewed full-screen; manually advance slides)

Uploaded on authorSTREAM by chrisnewell

Well, what a week this has been! On this past Monday, I called to make appointments to show 16 properties (I call this many expecting a few to be sold and one or two to say it is inconvenient). Out of the 16 I called on, 9 of them sold over the weekend!

By Tuesday morning, another 3 of them had sold. Fast forward to Wednesday, and I was looking to book some more showings; called on 12 properties and 7 of them were sold!

Now, there are multiple offers happening, although houses are not necessarily selling for over the list price. Agents from Windsor to Ottawa are reporting the same thing – multiple offers on houses that are easy to show, aggressively priced, and that show really well.

One thing I noted during my showings this week is that there are still a lot of sellers who haven’t caught on to the realities of the market. They are trying to sell a house that needs paint throughout, that has major dings and scratches in the trim and walls, and/or has filthy carpet, AND IS ONLY 5 OR 6 YEARS OLD!

These are NOT the houses that are selling, whether in single offers or multiple offers!

And I just don’t understand this, I really don’t. Why are these people doing this? Are they getting the right advice from their agent, and not listening to that advice? Is their agent even giving them the advice to make it pretty in the first place? What gives with this?

I don’t know about you, but in my 16+ years as a busy Realtor, I have NEVER met someone who loves having their house on the market for 40, 50, 80, 160 days! And it doesn’t need to be this way; it really doesn’t.

If you have your house for sale, are you getting feedback on the showings on your house? I seriously doubt that you are, for a couple of very good reasons:

1. Out of the last 100 houses I have shown, I have had 5 requests for feedback from the listing agents. When I get one of these requests within the first couple of days after I show a house, I respond, and I am very honest about the house, from my perspective of how well it shows and how it is priced. Question for you – does your agent tell you when showing agents say things need to be fixed / cleaned / changed etc.?
2. Most Buyer Agents don’t believe in giving feedback when it is requested. We try 3 times for each showing to get feedback for our listings, and it is hard to get. BUT, we do try, unlike most agents.

Okay, rant mode off, and on to the market data for last week. Doesn’t look a lot different than last week, although the average prices are up. You’ll see one price range where the average sale is higher than the average list; that is because of one particular house that sold in one day for 11% over the list price. It was definitely underlisted, and quite possibly that was deliberate. It sold for a realistic price.

And here is the updated Annual Summary:

I’m curious to hear your thoughts on the rant above, so please leave me your comments. Comments are welcome from agents, the general public, and anyone else.