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.

6 Best ways to Spend your Renovation $$$

Resale value is now always considered when a potential buyer is deciding upon a home to purchase. The ongoing debate is always - where is one’s money best spent to increase the value of the home? Budgets play a big part in a renovation and I see too many “all-in” renovations... In other words, homeowners blow their entire budget on one room and neglect the rest of the home. At “for sale” time this can leave a bad taste in a purchaser’s mouth, mainly due to the renovation of the one room having dated the rest of the home even more so. Unless you have an unlimited budget, here are some helpful do’s and don’ts that should assist you when coming to the renovation decision.

Kitchens are often a main selling point, but can be quite costly.

1. Never...ever...proceed with a cosmetic renovation when there are structural or plumbing/electrical issues with the home. I know these aren’t sexy fixes but they should always be a priority when doing renovations. Let’s face it, there is nothing worse than redoing your master en suite and then having a roof failure and water damage to the ceiling etc. I’m sure you have heard of the expression “good bones”...make sure you start any renovation with a solid foundation/structure.
2. The biggest mistake I see in renovations are the disconnects, an example being granite counter tops installed on 40 year old bathroom cabinets. You may consider this an upgrade but to a potential buyer they see this as putting “lipstick on a pig”. If you are trying to sell the bathroom as updated, good luck, no buyer will pay for poor renovations, especially when they have to be completely redone.
3. On a limited budget? Be smart! – consistent renovations are by far the best bang for your buck. In other words, do some mild updating in all of the rooms. You would be surprised how fresh a home looks with new paint, light fixtures/switches and modern baseboards. In most cases, for the average size home this will cost under 10K but it will most certainly add value when it comes time to re-sell.
4. Changing a traditional floor plan of a home and creating a more functional one is great for resale. Tearing a wall out can create that “open concept layout” one desires and it doesn’t have to be expensive.
5. Timeless design – when renovating, choose styles and fixtures that will remain current, what you like may not be appealing to the masses.
6. The kitchen is always the most expensive room in the house to renovate, so proceed cautiously! It can make or break the resale of the home so choose your layout, design and fixtures with care and hiring a designer for input, wouldn’t be the worst decision one could make.

So remember to always have a plan before starting a renovation. There is nothing worse than a half finished kitchen and no money left in the budget to finish it!

www.hgtv.ca

www.realestate-hamilton.ca

10 tips when Downsizing your Home

Whether you're an empty nester moving from a house into a condo, or a renter trading in a two-bedroom for a studio, you'll have to say sayonara to some of your stuff. Stressed out by the prospect? Don't be. Sarah Moyse and Jennie Davidson, Toronto-based moving planners and owners of Wren Designs, offer 10 tips designed to make downsizing a snap!

1. Write a list of all the items you love and can't live without; it will help you bid adieu to things that didn't make the list. “It's hard to persuade people they can't take everything with them,” Sarah says. “But by keeping what's on your wish list, you won't be upset about the things you can't keep.”

2. Start thinning out your belongings at least three months before the move. Take some time each day, or one morning each week, to go through that jammed coat closet or overflowing filing cabinet. "Paper is the real killer," Jennie says, so tackle it one box at a time. The same goes for photos, which require a lot of attention.

3. Get a feel for the size of your new rooms by comparing them to rooms of similar dimensions in your present home. For instance, your living-room-to-be might be roughly the same size as your current bedroom. You may think you can squeeze in two sofas, but this kind of reality check could help you realize that only one will fit comfortably.

4. Heavily edit areas with items that don't have as much sentimental value. Take the kitchen, for example; most people don't need 10 mixing bowls and won't get teary-eyed over losing a second spatula. If you're downsizing from a house to a condo, target the garage. Snow shovels, the lawn mower, ladders - you won't need any of them.

5. Don't throw anything in the garbage. Recycle, reuse, sell and donate instead. As tempting and easy as it is to pitch wire hangers, musty clothes and shabby furnishings, be environmentally responsible and find a home for everything. A can of Comet with a few shakes of powder left could make someone else's sink sparkle if you don't want it; consider giving supplies to a shelter, neighbour or cleaning lady.

6. Label three bins To Keep, To Sell and Charity (bins should be manageable when full). For the average downsize, keep only one-third to one-half of your belongings, say Sarah and Jennie.

7. Get an objective opinion. If you can't decide whether to keep or kiss that dusty '70s-era sewing machine goodbye, Sarah says, "It's good to have someone who'll say, ‘Oh, please, you never use that!'" It might just be the kick you need.

8. When selling your goods, try an auction for high-end items. Then look for reputable antique and secondhand dealers. Often, they can buy all of your wares or put you in touch with booksellers and other specialty dealers. "Some dealers will come to your home, take what you don't want and even drop off the charity stuff," Sarah says. "That way you won't be trudging all over town." If you can't sell an item, donate it to a shelter.

9. Use floor plans to prearrange your furniture before the move. This is another useful reality check. To start, draw plans if you don't have any, and sketch in a furniture layout. Then look at the plans realistically; if you've crammed in side tables, armoires and chairs, you need to edit more. Don't wait until after you move to contend with furniture you'll just end up tripping over.

10. Once you get to the packing stage, use a colour-coded system to organize all of your boxes.Choose a colour for each room and mark the boxes destined for that room with a coordinating colour sticker. You can also do the same thing numerically; for example, if room No. 1 is the kitchen, then all boxes marked No. 1 will go there. A simple and efficient organizing idea to make the move that much easier!
www.styleathome.com

www.realestate-hamilton.ca
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6 Ways to Earn Money in Real Estate

We are in a great market to buy real estate, and mortgage rates are at an all-time low. You might be thinking about stepping into the real estate market in Hamilton, or maybe you already own a piece of real estate. Wondering how you can get the most of it? Here are some unexpected ways you can use real estate to boost your investments.

Home Business

Real estate can open doors if you're interested in running your own business. Auto mechanics, hair dressers and even those with a green thumb growing produce in the backyard can use their home as a place of business. Just be sure to check any zoning laws before hanging out your shingles.

If you're working in an office, owning real estate can give you a chance to work from home, and even take a tax deduction. Talk to your boss; you may find telecommuting some or all of the time is your way to get the most out of your real estate dollar.

Multi-Family Dwelling

When you think of a roommate, you're probably having flashbacks to your college days - but think again. Renting a portion of your home can bring in big bucks, and may even allow you to live in your home for free once you factor in your rental income. Retirees and single professionals could benefit in a big way by splitting housing costs, but even families with unused rooms or basements could profit from having a tenant.

If you're buying a home, look for properties with finished basements, mother-in-law suites or two master baths, a common feature in many newer homes. Consider adding a kitchenette and a private entrance, which can be done with a small investment, to give your tenant their own space.