Market Watch August 2013

RESIDENTIAL MARKET

The number of residential sales in Windsor and Essex County remains fairly flat year to date as of July 31, 2013, with an increase of only 1%, compared to YTD July  31, 2013.  The average price increased 4% to $181,210  from $174,144 during the same period.  Active Listings as of July 31, 2013 was 2,738 compared to 2808 in 2012, this is a decrease of 2.6%.  The market remains fairly balanced with a listing sales ratio of 54% year to date 2013 compared to 53% in 2012.

We are anticipating prices to continue to rise this year, as inventory levels remain low and demand remains steady.  Many Windsor home owners have struggled with low home values.   As property values continue to improve each year,  we anticipate more home owners in future years will be looking to buy and sell, as they will have more equity available to them.

CONDO MARKET

The number of condo sales in Windsor and Essex County has increased 4.3% year to date as of July 31, 2013.  The average price year to date increased substantially to $137,498 as of July 31, 2013  from $128,794 in 2012, representing an increase of 6.8%.

Active  Condo Listings as of July 31, 2013 was 225 compared to 259 in 2012, this is a decrease of 13.1%.   . The Listing Sales Ratio increased to 54% year to date  as of July 31, 2013 compared to 50% in 2012.

The substantial drop in condo inventory is putting upward pressure on condo prices.  With rising prices and steady demand, we expect the construction on new condominiums will begin to resume within the next 1 - 2 years after coming to a halt in 2009.

 

Other News:  The City of Detroits declaration of Bankruptcy.  Detroit tax base has fallen dramatically, as the city struggles with a declining population, declining property values, and hi vacancy. However Michigan as whole is now in recovery with prices recovering rapidly from their substantial drop in 2009.

Windsor is still struggling with unemployment, Windsor's jobless rate moved up to third in Canada in June despite the fact it fell marginally from 9.5 per cent in May to 9.4 per cent last month.

 The CMHC housing outlook report shows housing starts continue to be low in 2013.

 

Market Watch Condominium Dec 31, 2012

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Condominium Market
For the Period Ending December 31, 2012

• During the twelve month period ending December 31, 2012 there were 442 condominium sales in the market place. This compares to 425 condo sales in the same period of 2011, an increase of 4%.
• As of December 31, 2012 there were 809 condo listings received. This compares to 878 for the same period of 2011, a decrease of 8%.
• The sales to list ratio (Listings sold expressed as a percent of Listings received) for the December 31, 2012 period was 55%. In 2011 it was 48%.
• The inventory of active condo listings as of December 31, 2012 was 206 units. This compares to 227 units in 2011 and is a decrease of 9%.
• The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand. It currently stands at 5.6 months. In 2011 it was 6.4 months.
• The average condo selling price was $126,745 for the 12 month period an increase of 4% from 2011.
• The average listing during the period took 83 days to sell. Compared to 101 in 2011 and sold for 96% of the list price.

Market Watch Residential Dec 31, 2012

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Residential Market
For the Period Ending December 31, 2012

• During the twelve month period ending December 31, 2012 there were 4,933 residential sales in the market place this compares to 4,786 residential sales for the same period in 2011, an increase of 3%.
• As of December 31, 2012 there were 9,061 residential listings received this compares to 9,364 in the same period for 2011, this is a decrease of 3% in residential listings received.
• The sales to listings ratio (listings sold expressed as a percent of listings received) for the period was 54% in 2011 it was 51%.
• The inventory of the active residential listings as of December 31, 2012 was 2,192, this compares to 2,450 in 2011. This is a decrease of 11% in active residential listings.
• The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand. It currently stands at 5.3 months. In December 2011 it was 6.1 months.
• The average residential selling price was $175,515 for the 12 month period ending December 31, 2012. This is an increase of 3% from 2011.
• The average listing during the period took 74 days to sell (76 in 2011) and sold for 95% of the list price.

Buckingham October Market Watch

BUCKINGHAM REALTY (WINDSOR) LTD. MARKET WATCH
Windsor-Essex County Residential Market
For the Period Ending September 30, 2012

• During the nine month period ending September 30, 2012 there were 3,951 residential sales in the market place this compares to 3,795 residential sales for the same period in 2011, an increase of 4%.
• As of September 30, 2012 there were 7,340 residential listings received this compares to 7,605 in the same period for 2011, this is a decrease of 3% in residential listings received.
• The sales to listings ratio (listings sold expressed as a percent of listings received) for the period was 54% in 2011 it was 50%.
• The inventory of the active residential listings as of September 30, 2012 was 2,662, this compares to 3,012 in 2011. This is a decrease of 12% in active residential listings.
• The number of months of inventory represents the number of months it would take to sell current inventories at the current rate of sales activity, and is a further measure of the balance between housing supply and demand. It currently stands at 6 months. In September 2011 it was 7.3 months.
• The average residential selling price was $176,001 for the 9 month period ending September 30, 2012. This is an increase of 4% from 2011.
• The average listing during the period took 75 days to sell (74 in 2011) and sold for 95% of the list price.

For a similar report of statistics about condominiums sales, contact one of our sales representatives.

Statistics are provided courtesy of the Windsor Essex County Real Estate Board.

Banks Change Lending Rules In Canada June 2012

Source Globe and Mail

The country’s biggest banks were caught off guard on Wednesday night as the Department of Finance prepared to clamp down on mortgages by reducing the maximum amortization for a government-insured mortgage to 25 years from 30.
Ottawa will also limit the amount of equity that can be borrowed against a home to 80 per cent of the property’s value, down from 85 per cent.
The moves are designed to cool the housing market and limit the record levels of personal debt Canadians have amassed in recent years. Figures from Statistics Canada show the average ratio of debt-to-disposable income climbed to 152 per cent, up from 150.6 per cent at the end of 2011. A rise in interest rates or further job losses could put some households at financial risk, endangering any economic recovery.
The Bank of Canada is expected to keep interest rates low for some time because the economy shows little sign of a strong recovery, so tightening mortgage rules is one way to ensure Canadians don’t get in over their heads during a prolonged period of ultra-low interest rates.
Reducing the maximum amortization on government-backed mortgages will eliminate the 30-year mortgage for most borrowers in Canada. The changes, which are expected to be unveiled at a news conference in Ottawa on Thursday morning, will translate into higher monthly payments, but result in the loan being paid off sooner.
Ottawa will announce two other changes, according to a source. It will no longer allow high-ratio mortgages over $1-million, and it will cap the gross debt service (which looks at a consumer’s total debt payments as a percentage of their income) at 39 per cent. While many banks tend not to allow mortgages over 40 per cent, there had been no official rule in place.
It is the fourth time in four years that Ottawa has moved to cool the housing market by tightening mortgage rules. In early 2011, Finance Minister Jim Flaherty reduced maximum insured amortizations to 30 years, and limited borrowing to 85 per cent of the property value.
CIBC economist Benjamin Tal described the changes as a “gentle push,” since the government didn’t make alterations to the minimum downpayment required on mortgages, which stands at 5 per cent.
“The fact that they didn’t change downpayments is a realization that doing so would probably be too severe given that the market is slowing down,” he said.
However, there remain concerns the changes could cause too abrupt a shift in the market. “All of these things might precipitate the housing market downturn that the government wants to avoid,” Jim Murphy, CEO of the Canadian Association of Accredited Mortgage Professionals, said in an interview.

Mortgage Pre Approval - Windsor Essex Real Estate

By Dan Lenhardt - Scotiabank

Compliments www.buckinghamrealty.ca

Two often confused terms in the home buying process are a mortgage loan pre-qualification and a home loan pre-approval. Even some loan officers and real estate agents will use the terms incorrectly, so here's what you really need to know about each one.

Pre-Qualification

A mortgage loan pre-qualification is simply an estimate of how much house you can afford and how much money a lender would be willing to loan you. The best time to get a pre-qualification is right at the beginning of your home buying process, before you even start looking at houses. This involves either sitting down with a lender or talking with one on the phone, and providing information on your income, assets, debts, and a potential down payment amount. The lender would then provide you with a ballpark figure in writing of how much he thinks you could afford to pay for a monthly mortgage. There is no cost involved and there is no commitment on either side. This estimate is just helpful in helping you figure out if buying a home is a viable option, and if so, what your price range would probably be.

Pre-approval

Getting pre-approved means that you have a tentative commitment from a specific lender for mortgage funding. In this case, you provide a home loan lender with actual documentation of your income, assets, and debts. This process typically requires an application fee as well, since the bank will run a credit check and work to verify all your employment and financial information. Once you are approved, the lender will give you a letter of commitment, stating how much money her bank is willing to loan you for a home purchase. With a pre-approval in hand you can start your shopping - real estate agents and sellers will take you much more seriously when they see you have your mortgage funding in place.

It is important to understand, however, that even a pre-approval is not a guarantee that you will be approved for a mortgage loan.  The funding will only be given when the property appraisal, title search, and other verifications check out on the home you have chosen to buy.  Neither is the pre-approval binding; you can still obtain a mortgage from a different lender. If you do stick with the same company that pre-approved you though, the application process will be much shorter once you find the right house.
Call Dan for your pre-approval !

Scotiabank

Dan Lenhardt, AMP
Mortgage Manager
Windsor and Area
off: 519-974-4632
cell: 519-919-2779

Deadline for Request for Reconsideration April 2, 2012

Source MPAC brochure:

If you don’t agree with your Property Assessment from MPAC you can file a Request for Reconsideration.

The deadline to file your RfR is April 2, 2012.

There are two ways to file a RfR:
• The preferred method is to submit a RfR form.
Request For Reconsideration 2012 Form

Forms are available at www.mpac.ca, or call us at 1 866 296-MPAC (6722). You may also choose to file your RfR electronically through AboutMyProperty™ on MPAC’s website. You will be able to attach documents, pictures and reports to accompany your RfR. Your personalized User ID and Password for AboutMyProperty™ are included on your Notice.
1. Write a letter requesting a reconsideration. In your letter, please include the 19-digit roll number on your Notice; your full name, address and phone number; and the reasons why you feel your assessment is not correct, including any information you have to support your claim.
2. File an Appeal with the Assessment Review Board (ARB) You may also choose to file an Appeal with the ARB, an independent tribunal of Ontario’s Ministry of theAttorney General.

Residential, Farm and Managed Forest Properties
If your property, or a portion of it, is classified as residential, farm or managed forests, you must first file a RfR with MPAC before you are eligible to file an Appeal with the ARB. The classification of your property is indicated on your Notice.

If you are required to, or choose to file a RfR first, you have 90 days after MPAC has notified you of its decision on your RfR to file an Appeal with the ARB.
The ARB has its own Appeal process. For more information, please contact the ARB at
1 866 448-2248 or 416 212-6349 or visit their website at www.arb.gov.on.ca.
To request that your property be eligible for the farm or managed forests classes or
conservation land exemption, you must file a RfR with the respective program administrator. For more information, please contact MPAC or visit www.mpac.ca.
Other Property Types
For any other property types, you can choose to file a RfR with MPAC or file an Appeal with the ARB. The deadline to file your RfR and/or Appeal is April 2, 2012.
MPAC’s Role at an ARB Hearing At an ARB hearing, the onus is on MPAC to prove the
accuracy of our assessed value. MPAC will present comparable properties as evidence and will share that information with you prior to the hearing. You will also be asked to provide evidence to support
your position. Ideally, you should select properties that are most similar to yours (for example, neighbourhood, lot dimensions, living area, age of structure(s) and quality of construction). Please contact MPAC if you have any questions.