Mortgage Rates

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5 Year Closed Mortgage	As low as   3.49%
Variable Rate Special	As Low as Prime -0.50%
3 Year Closed Mortgage	As Low as 2.69%
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5 Year Cash Back for Down Payment!	As low 4.85%

The Cash back for Down Payment is still available at Great rate! Take advantage of this little known product that is not available to the Big Banks!    Private Funds are available. www.realestate-hamilton.ca www.realestate-binbrook.ca

September Stats - Prices up 6.7% and Sales up 32.9%

The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1207 properties sold through the RAHB Multiple Listing Service® (MLS®) system in September.  This represents a 32.9 per cent increase in the number of sales over September of last year and is only one sale shy of the September record of 1208 sales set in 2009.

The average sale price of $392,013 was an increase of 6.7 per cent over the previous September. There were 1953 properties listed in September, an increase of 5.8 per cent over September of last year.   End-of-month listing inventory is 6.8 per cent lower than last year.

 “Sales and listings for the month of September were both well above the 10-year average for the month,” said RAHB CEO Ross Godsoe.  “Even though there was an almost-six per cent increase in listings, inventory continues to be lower than last year at this same time.”

Seasonally adjusted* sales of residential properties were 21.4 per cent higher than the same month last year, with the average sale price up eight per cent for the month.  Seasonally adjusted numbers of new listings were 1.4 per cent higher than the same month last year.

Seasonally adjusted data for residential properties for the month of September, 2013:

Actual overall residential sales were 31.1 per cent higher than the previous year at the same time.  Residential freehold sales were 34.6 per cent higher than last year and the condominium market saw an increase of 16.7 per cent in sales.  The average sale price of freehold properties showed an increase of 10.1 per cent over the same month last year; the average sale price in the condominium market decreased seven per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all residential properties sold.  Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market remained at 44 days in the freehold market and decreased from 50 days to 42 in the condominium market.

“This is the first time since the first quarter of the year that we saw a more balanced market,” added Godsoe.  “Whether it will continue that way is a good question – we’ll have to see what the next few months bring.”

Year to date, listings are up 1.3 per cent compared to the same period last year, while sales are 1.6 per cent higher.  The average sale price for the first three quarters of the year is 7.7 per cent higher than the same period last year.

The numbers for the month of September 2013 compared to September 2012:

Every community in RAHB’s market area has their own localized residential market.  Please refer to the accompanying chart for residential market activities in select areas of RAHB’s jurisdiction.

*Seasonal adjustment removes normal seasonal variations, enabling analysis of monthly changes and fundamental trends in the data.

www.realestate-hamilton.ca
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City Living vs. The Burbs -- Which is cheaper?

There's a common perception that living in the suburbs is much cheaper than the city. This article originally posted on the Globe and Mail shows the other side to the story.

There’s no refuge in the suburbs from Canada’s housing affordability problem.

You can buy a house for less money in the suburbs than you can in a big city, but the cost of commuting may kill almost all your savings. Some number-crunching by a public-spirited mortgage broker in the Toronto area makes this point quite clearly.

David Hughes, with the Mortgage Group Ontario Inc., divides his clients into a couple of groups with respect to attitudes toward living in suburbia: One group wants to live in the suburbs and is fine with the idea of commuting, and then there are those who want to live downtown, but can’t afford the prices. “They either buy a fixer-upper, or they run screaming to the suburbs and living with the two cars.”

Now, he finds people talking more about the cost of two working parents commuting by car every day. He explains this shift as being a result of the bigger mortgages people are taking on, and the considerable cost of buying and owning a car. “Gas at $1.30 a litre will do that to you,” he said.

No question, you’ll find house prices are cheaper outside big cities. Toronto Real Estate Board numbers suggest a spread of almost $250,000 between city homes and those in the neighbouring suburbs. Suburban living loses its cost advantage if you have two adults commuting by car each day. Add the effect of stress and time spent in gridlock, and suburbia looks even more costly.

Imagine you’re part of a couple that has $50,000 for a down payment and must decide between a $500,000 house in the suburbs and a $720,000 house downtown. The suburban lifestyle comes with two cars in this example; the city dwellers get by with public transportation, taxis and car sharing or rentals. To keep things simple, we’ll assume here that your mortgage rate will be a constant 3.5 per cent and that you’ll take 25 years to pay it down.

Suburban living costs less in this example, but by only $63 per month if you add mortgage and transportation costs. And that’s with some conservative estimates by Mr. Hughes on car costs.

Using the 2013 edition of the Canadian Automobile Association as a guide, he set the annual cost of commuting at $9,500 a vehicle, or $19,000 for a pair. Included in these costs are variable factors such as fuel and maintenance, and fixed expenses such as insurance, licence and registration, depreciation and financing.

Your actual car ownership costs could be lower if you drive a reliable older vehicle that has been paid off. But you may well pay more. Mr. Hughes’s CAA numbers were based on owning two Honda Civics – many families are driving at least one fancier vehicle. The estimated total number of kilometres driven each year was in the low 20,000 range – you could easily drive further in a year if you have a long commute.

The downtown household pays $6,000 annually for a pair of monthly transit passes and occasional use of taxis, car rentals or car sharing. Maybe it’s not realistic to believe a family with kids can live downtown and not own a car. But while owning a car for periodic use makes city living more expensive, it doesn’t do a thing to mitigate the high cost of commuting from the suburbs.

The case for cheaper suburban houses is undermined most when you take a long view that factors in your transportation needs both before and after your mortgage is paid off. Mr. Hughes figured on the suburban household moving to just one car after the mortgage is done, while the downtowners stay car-less.

Let’s add up what happens over 40 years – 25 with a mortgage and 15 afterward. The suburban household pays a total of $1.3-million on mortgage principal and interest and transportation. The downtown household pays just a little bit less – $33,865, to exact.

If you plan to live outside the city where you work, commuting costs must be part of your housing affordability analysis. Mr. Hughes said he delicately makes this point to clients that come in with thoughts of suburban living. “I don’t want to see anyone impoverished by their choice.”

www.realestate-hamilton.ca
www.realestate-binbrook.ca

August sales up 8.8% year-over-year

The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1203 properties sold through the RAHB Multiple Listing Service® (MLS®) in August.  This represents an 8.8 per cent increase in the number of sales over August of last year. The average sale price of $383,561 was an increase of five per cent over the previous August.

There were 1640 properties listed in August, an increase of eight per cent over August of last year.   End-of-month listing inventory is 2.6 per cent lower than last year.

“We saw more new listings than we did last year at the same time,” said RAHB CEO Ross Godsoe.  “yet new listings are still below average for the month.  Sales, however, are about one per cent higher than the ten-year average.”

Seasonally adjusted* sales of residential properties were 8.8 per cent higher than the same month last year, with the average sale price up three per cent for the month.  Seasonally adjusted numbers of new listings were 8.8 per cent higher than the same month last year.

Seasonally adjusted data for residential properties for the month of August, 2013:

Ontario Home Sales on Rise

A new forecast by Central 1 Credit Union indicates housing prices in Ontario are likely to rise the most in the Northwest and in the Hamilton-Niagara area this year.

“Numbers in Hamilton have been largely positive lately, especially in price,” said Helmut Pastrick, chief economist. “Certain market conditions have shown some improvement and we think that will continue.”

Pastrick says actual home sales in Hamilton haven't risen significantly, but rising prices bode well for the market in this area.

That said, the fortunes of the housing market in southern Ontario are largely tied to the U.S. economy, he points out.

“In general, the market is going to be treading water,” Pastrick said. “We need the economy to kick into high gear for significant [real estate] gains.”

He says a real upswing in area sales is all predicated on the economic conditions in the U.S. “But if there are gains there, Hamilton will benefit from that upswing.”

Federal efforts to curb household borrowing and tighten mortgage conditions will remain a drag on the market, the new forecast says.

The report says Ontario home sales have steadied at an annualized rate of 185,000 since September, following a six-month sales decline that pulled the sales pace down by more than 10 per cent.

"Fewer sales have led to softer prices, but declines have been insignificant," notes Pastrick.

The average MLS price was close to $384,000 in the fourth quarter, down less than 1 per cent from April and still about 3 per cent higher than in the same-period of 2011.

Other highlights from the report for Ontario as a whole include:

• Home sales hit bottom late in 2012 and are expected to rise in 2013
• Home prices are predicted to be flat, rising 0.8 per cent in 2013 and 2 per cent in 2014 and 2015
• The number of real estate listings will likely drop as potential sellers wait for higher prices
• Mortgage rates are expected to remain low
• Outside Toronto the supply of new homes is not excessive
• Central 1 does not expect a glut of condos in Toronto
• Housing starts are forecast to decline 10.5 per cent in 2013 and remain stable in 2014
• Rental vacancy rates will likely remain low, although the number of units will grow

As a whole, Pastrick says he's optimistic about the outlook for the housing market in Ontario.

“It's not an overly robust forecast, but I think there's more upside than not.”

Sellers Market Persists: Sale prices up 12.5%

The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1288 properties sold through the RAHB Multiple Listing Service® (MLS®) in July.  This represents a 3.9 per cent increase in the number of sales over July of last year. The average sale price of $387,108 was an increase of 10.7 per cent over the previous July.

There were 1852 properties listed in July, an increase of 5.4 per cent over July of last year.   End-of-month listing inventory is 3.3 per cent lower than last year.

“We are still experiencing a seller’s market in our market area,” said RAHB CEO Ross Godsoe.  “We thought earlier in the year we might see a more balanced market by this point, but that hasn’t been the case.”

Seasonally adjusted* sales of residential properties were less than one per cent lower than the same month last year, with the average sale price up 12.5 per cent for the month.  Seasonally adjusted numbers of new listings were 1.8 per cent higher than the same month last year.

Seasonally adjusted data for residential properties for the month of July, 2013:

Actual overall residential sales were 4.5 per cent higher than the previous year at the same time.  Residential freehold sales were 5.7 per cent higher than last year while the condominium market saw virtually the same number of sales.  The average sale price of freehold properties showed an increase of 11.7 per cent over the same month last year; the condominium market saw an increase of 2.9 per cent when compared to the same period last year.

The average sale price is based on the total dollar volume of all residential properties sold.  Average sale price information can be useful in establishing long term trends, but should not be used as an indicator that specific properties have increased or decreased in value.

The average days on market decreased from 45 days to 42 days in the freehold market and remained at 45 days for condominiums.

Year to date, listings are down less than one per cent compared to the same period last year, while sales are 2.4 per cent lower.  The average sale price for the first half of the year is 8.1 per cent higher than the same period last year.

www.realestate-hamilton.ca

50 Ways to Save Money off your Energy Bill

Recent power outages in North America are a reminder of how extensively we depend on electricity to function. Among other things, it provides light and heat, keeps our food cool and brings the world into our homes through our televisions and computers. As the demand for power has increased, so has the incidence of blackouts and price increases in some parts of the country. Homeowners have a strong incentive to save energy and money but often don't know where to start. The following are some simple ways to plug the 'money drains' around your home.

1. Keep your hot water thermostat set at 110-120 C (most are set at 140 C).
2. Install an automatic timer so that water is heated only during the hours needed.
3. Wash clothing in cold or warm water rather than hot water.
4. Insulate your water heater with a fire resistant water heater blanket.
5. Install an aerator on your kitchen sink faucet to save on hot water.
6. Reduce water usage by installing a low-flow showerhead.
7. "Suds savers" on washers allow you to reuse hot water for multiple loads.
8. Consider heating your pool (and your home) with solar heat.
9. Close off the attic, garage, basement, spare bedrooms, storage areas, etc.
10.Insulate floors over unheated spaces such as crawl spaces and the garage.