Century 21 News Happy Thanksgiving
Volume 6, Issue 10 Visit: www.century21today.ca for current listings
YOUR UPDATES ON MARKET TRENDS, CONDITIONS & REAL ESTATE INFO
In This Issue
1 MLS Stats
2 10 Reasons to Buy Before the Rebound
3 Former Grow-Op for Sale…or Is It?
4 How’s the Market
7 What’s My Home Worth?
DID YOU KNOW?
MLS Niagara Region Listing and Sales for all properties to September 30, 2010:
• The number of listings YTD 12,203, up 8%.
• The number of Sales YTD 5,023 versus 4,753 in 2009 and 5,247 in 2008
• The Total Sales Dollar Volume YTD:
$1,116,264,326; up 11% over last year.
• The number of expired Listing YTD: 4,208; up 5%.
• Number of Active Listings at September 30, 2010: 4,905.
(Source MLS® Statistics Report, Niagara Association of REALTORS®)
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Former Grow-Op for Sale…
…Or Is It?
Sometimes a little foresight and a preliminary search at the Registry Office can save time, money and a lot of disappointment.
The listing price was extremely attractive. The home, a former Grow House, was listed for sale by the Lender under a Power of Sale.
On inspecting the property, the buyer was pleasantly surprised at the home’s cleanliness compared to a couple of other Power of Sale listings he had seen. He voiced some mild interest and wanted time to think about it. Within a couple of days he wanted a second closer inspection. This time his interest grew and he wanted to proceed with making an offer to buy right away.
The sales representative advised that, before drafting an offer, he should see what other information he could obtain from the listing brokerage. Having been a Grow House, the salesperson voiced concern about possible mold and other fungal contamination, hidden moisture problems and any other toxins and environmental hazards.
The listing representative mentioned that:
1. Two prior offers had been negotiated unsuccessfully,
2. The seller had a clean air report that was two years old.
So the buyer’s rep. asked for a copy of the report. The salesperson also wanted some idea of the mortgage amount registered against the property.
At the Registry Office he found:
1. A registered Court Order restraining the property on behalf of the Attorney General, Proceeds of Crime Unit,
2. An Order/Bylaw registered by the Municipality, and
3. The Lender’s registered mortgage.
On obtaining a legal opinion, the REALTOR® was told that the lender could not sell the property under the Power of Sale provisions, given that the property had been seized by the government, and any sale could only be conducted through the Attorney General’s office.
The REALTOR® informed the buyer. He also notified the listing salesperson who claimed to be totally unaware of the seizure. One would suspect the lender too had to be oblivious of the government’s restraining order; otherwise it would not have attempted to sell the property.
Drafting an offer, negotiating with the Lender and working to remove buyer conditions would have turned into a huge waste of time. Home inspection, legal and other potential costs (such as an updated clean air report) would have represented an additional waste of money. The discovery also saved the buyer from frustration and disappointment.
A good REALTOR® can save you a lot of time and expense and lessen stress. Contact us.
10 Great Reasons to Buy Now--Before the Next Rebound
The benefits and fundamentals of home ownership remain strong. Here are 10 great reasons to buy now:
1. The overall average price in the Region has continued to increase. As of August 31, 2010 the 12-month average is up 6.89%. As well, the overall average sale price in each city in Niagara is remains positive.
2. Mortgage rates remain extremely cheap as Lenders are competing aggressively for business. The Centum Financial posted fixed rated for a 5-year fixed mortgage is only 3.59% on approved credit.
3. Motivated sellers compete with other listings and price their homes to sell.
4. Tax Advantages
a. You may be eligible for the First-time homebuyer’s tax credit--up to $750 in tax savings to help with closing costs.
b. With the Home Buyers' Program you can withdraw up to $25,000 out of your RRSPs ($50,000 for eligible couples) to buy a first home without tax consequences.
5. You do not pay HST in Ontario on the purchase price of a resale home.
6. Owning a home offers inflation protection as appreciation over time generally outpaces inflation. Real estate has remained relatively stable in Canada. A good rule of thumb: buy a home you plan to live in for at least 5 years.
7. Owning is forced savings: part of your mortgage payment goes toward building your equity in the home. For example, take a purchase price of $210,500, 5% down and a 5-year fixed rate at 3.59% amortized over 25 years. The principal amount of the mortgage after 5 years would be paid down by about $22,982.
8. Rent over 5 years at a minimum of $750/month translates into $45,000 to the landlord. You get nothing back.
9. Because it’s yours, you can decorate any way you like and no landlord will force you to leave.
10. Above all, it’s the one investment that gives you the enjoyment of living in it.
Don’t wait until the next market rebound.
Sources: Wall Street Journal, Brett Arends (9/16/10); MACLEAN’S Magazine (9/13/10), page 54, “Avoiding the Crash”.
How’s The Single Family Market
Market Overview for Single Family Residential in Niagara Year-to-Date Numbers to End of Sept. 2010
The number of listings is up in all cities except Pelham/Fonthill (down -2.29%) and Port Colborne/Wainlfeet (down -1.58%).
The average sale price remains in positive territory in all cities YTD compared to last year. Overall average YTD: 6.27%.
The sales-to-listings ratio: 38% for Fort Erie and 37% for Niagara-on-the-Lake indicates a buyer’s market.
All others areas indicate a balanced market.
The number of sales YTD: up in all areas except Pelham/Fonthill (down -2.4% & Port/Wainfleet (down -6.7%).
Monthly Numbers from June through Sept. 2010
No. of Listings June July August Sept.
Overall in Niagara 947 790 767 870
No. of Sales from June through Sept. by City
City June July August Sept.
NOL 19 18 23 19
Niag. Falls 92 71 70 98
Fort Erie 40 45 52 38
St. Catharines 163 138 114 102
Thorold 27 22 21 26
Pelham/ Fonthill 24 15 12 23
Welland 66 64 54 50
Port/ Wainfleet 26 21 22 27
Linc/West Linc 25 17 21 13
Total 482 411 389 396
(Source: MLS® Statistics Report, NAR)
Thinking of Selling or Buying?
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What’s My Home Worth?
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I can help you with all your real estate needs.
Call: John Palumbo 905-651 3044 or
Visit My Website: www.johnpalumbo.ca
TODAY REALTY LTD
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