5 Ways to Make a Smart Real Estate Purchase

It's in a great location!

We’ve all heard the horror stories – people paying way too much for a house, not getting an inspection and then finding a million (expensive) problems with the place. I’ve seen it countless time with homeowners on and from talking to eager real estate investors.

Here are my top five tips for making a smart real estate purchase so you don’t get burned!

1. Stick to Your Budget
   It’s easy to get carried away here, especially if you make the mistake of looking at houses outside your price range. The important part is to have a plan. Don’t just think about your mortgage payments every month; also think about your monthly carrying cost and be honest about your lifestyle. Consider how much you spend every month on eating out, clothing, etc. There’s nothing worse than being house poor because you weren’t honest about your spending habits.
2. Don’t be Afraid to Walk Away
   A house is an emotional purchase, since it’s where you’ll be living, raising your children and making a home for yourself. But it’s crucial to keep emotions out of the equation as much as possible. You should love your house, but you should love it because it’s in good condition and because the numbers work. Always get a home inspection and if you can’t afford it (or the work it requires), walk away!
3. Give Every House a Chance
   I do most of my real estate browsing online, as do most people now, but you can’t always judge a house by the virtual tour – good or bad. If you see something online and it has bad pictures (or no pictures) but it’s in the right neighbourhood or in your price range, go look at it! Chances are you can get a good deal because so many people will skip it without photos online.
4. Think Long-Term
   Before you jump into a real estate purchase, ask yourself: “What is the purpose of this property for the next 5-10 years?” Depending on your mortgage, you may have to lock in for a certain number of years, and if you think you’ll be moving in less than 5 years, I’d suggest looking at alternatives. You never want to be forced into selling your house.
5. Have a Support System
   Having a real estate agent who understands your financial and personal situation is key, and great advice from a mortgage specialist and lawyer can be invaluable to the home-buyingprocess. But what many people forget is to have a personal support system in place when they go house hunting. Advice from those close to you – family members, a partner, friends– is just as important to help keep you on track and avoid getting carried away. It’s easy to get caught up in the excitement of buying a house, so having the personal support will keep you grounded.
   hgtv.ca
   
   www.realestate-hamilton.ca

Mortgage Rate Update

Mortgage rates trending up, be sure to lock in now to hold these historically low rates!

Today's Best Rates!
5 Year Closed Mortgage	As low as   3.29%
Variable Rate Special	As Low as Prime -0.50%
Home Equity Line of Credit	As Low at Prime +.50%
10 Year Rate Special	As low as 3.99%
5 Year Cash Back for Down Payment	As low 4.85%

www.realestate-hamilton.ca

Listings, Sales, Average Sales All Up

The REALTORS® Association of Hamilton-Burlington (RAHB) reported 1367 properties sold through the RAHB Multiple Listing Service® (MLS®) in June.  This represents a 2.7 per cent increase in the number of sales over June of last year.

There were 1980 properties listed in June, an increase of 2.5 per cent over June of last year.   The average sale price of $397,374 was an increase of 8.5 per cent over the previous June.

“After a record-breaking month for sales in May, June settled into more of a normal pattern,” said RAHB CEO Ross Godsoe.  “While June sales were higher than last year at this time, they fell a little below the 10-year average for the month.”

Seasonally adjusted* sales of residential properties were 4.4 per cent higher than the same month last year, with the average sale price up 8.8 per cent for the month.  Seasonally adjusted numbers of new listings were 2.2 per cent higher than the same month last year.

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

Actual overall residential sales were 1.9 per cent higher than the previous year at the same time.  Residential freehold sales were 2.6 per cent higher than last year while the condominium market saw a decrease in sales of 1.3 per cent.  The average sale price of freehold properties showed an increase of 6.8 per cent over the same month last year; the condominium market saw an increase of 10.1 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 38 days to 37 days in the freehold market and increased from 40 days to 46 days for condominiums.

Year to date, listings are down 1.1 per cent compared to the same period last year, while sales are 3.3 per cent lower.  The average sale price for the first half of the year is 7.7 per cent higher than the same period last year.

“We are still a little behind where we were last year in numbers of sales and listings for the first half of the year, but the gap is decreasing as the year progresses,” added Godsoe.  “Our average sale price continues to be higher than it was the first six months of last year.  How recent announcements of increases in some mortgage rates will affect the rest of the year is still to be seen.”

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

Mortgage Rates Trending UP!!

Today's Best Rates!
5 Year Closed Mortgage	As low as   3.19%
Variable Rate Special	As Low as Prime -0.50%
Home Equity Line of Credit	As Low at Prime +.50%
10 Year Rate Special	As low as 3.99%
5 Year Cash Back for Down Payment	As low 4.85%

Some Mortgage rates have gone up as much as .70% in the last few weeks and the Bond Yields are Increasing again which implies more rate increases are on the way!!   www.realestate-hamilton.ca

The Want List vs. The Need List

One of the biggest problems I encounter with buyer's is differentiating between a 'want' and a 'need'. Too often people will give me a list of things they supposedly 'need', however when the time comes to buy, the house doe not have all the 'needs'.

There’s a difference between what you need and what you want. We all need a place to eat, sleep and call home, but when the time comes to buy that place, there’s a lot to consider. In a dream world we could envision our perfect home and magically make it happen. But this is reality, and in reality we all have budgets and other parameters we must work within, which is why I encourage all of my clients to start with a wish-list. It helps you determine exactly what you need, want, and must-have. It lays down a blueprint for your house hunt and it keeps you in check.

Here are some suggestions to help get you started building your wish-list:

• Make a list of all the things you love and don’t want to give up in the place you’re currently – a kitchen island, a soaker tub, a fireplace – whatever gives you pleasure and makes your house feel like home.

• A wish-list can also be referred to as a “change-list” – meaning, these are all the things about my current living space that must change. So take note of all the things in your current space that you are not happy with and highlight anything that frustrates you to no end.

• Consider how long you’re going to be in this home and what you envision happening in your life during that period. If you’re finally going to get that pet dog you've always wanted, then you’ll have to consider that when choosing the property.

• Identify which items you must have now, and which items can be added over time. Maybe you really want a deck in your backyard and you've just seen a great house that has everything but.  A deck is something you can add on down the road.

• Consider your wish-list a constantly changing thing. Trust me – once you start looking at properties, you’ll be adding and dropping things from your list. That’s the best part about house hunting – every place you see gives you a better sense of what you’re really looking for.
www.hgtv.ca

www.realestate-hamilton.ca

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May Sales Up 12%

The REALTORS® Association of Hamilton-Burlington (RAHB) reported a record 1599 sales of all property types listed through the RAHB Multiple Listing Service® (MLS®).  The previous record was 1598 sales in June of 2009.

There were 2,268 properties listed in May, a small increase over May of last year.  All property sales increased by 3.4 per cent over the same month last year.   The average sale price of $423,542 was an increase of 12.2 per cent from the previous May.

“May was a stellar month for sales of all property types,” said RAHB CEO Ross Godsoe.  “We started to see movement in the market in April and that continued through May, resulting in a record number of all property sales.”

Seasonally adjusted* sales of residential properties were 1.5 per cent higher than the same month last year, with the average sale price up 12.3 per cent for the month.  Seasonally adjusted numbers of new listings were 3.4 per cent higher than the same month last year.

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

   

Actual overall residential sales were three per cent higher than the previous year at the same time.  Residential freehold sales were 3.6 per cent higher than last year while the condominium market saw an increase in sales of almost one per cent.  The average sale price of freehold properties showed an increase of 12.3 per cent over the same month last year; the condominium market saw an increase of 14.1 per cent when compared to the same period last year.