In today’s competitive real estate market, more and more sellers are looking to target the increasingly important consumer group of the first-time buyer. The first step in reaching this target group is in knowing who this customer is, and then understanding their specialized wants and needs.
Just who is the first time buyer in terms of age, income, marital status, house price range? There’s no one right answer to that question, especially these days. First time buyers come from all ages and all walks of life. Also, their demographic profile can vary dramatically from market to market, and even between different communities in the same major market area. However, there are some interesting trends in the first time buyer demographics:
· As home prices rose, it resulted in young people staying at home with their parents longer in order to save the necessary money for a down payment. Not surprisingly then, the age of first time buyers has risen in recent years.
· There’s been a major shift in first time buyers in terms of marital status. Ten years ago, the vast majority were young married couples starting out their life together, with a hope for a growing family. Today, while couples still represent the majority, we’re also seeing a far greater percentage of young professionals, especially single women, entering the home buying market. These career-oriented people no longer want to wait for marriage before taking their first step on the property ladder. They want to build equity and achieve the dream of home ownership without waiting for the right life partner to come along. This group is a major force in low upkeep urban housing that is seen in the condo market.
· Canada enjoys a very strong positive in-migration population, and these individuals will continue to fuel the first time buyer market.
One trend that we’re now starting to see is an increase in the percentage of first time buyers in the market. With the escalating prices in recent years, some of these individuals were previously ‘locked out’ of the housing market. Now with adjusting prices, historically low interest rates, and help from government initiatives such as the recent increase in the Home Buyers Plan withdrawal plan from $20,000 to $25,000, have resulted in some of the most affordable housing seen in most markets in years. This is bringing a new buyer back into the market, as they are now seeing homeownership come back within their reach.
Want to know more about the first-time buyers market, and the special incentives that are now available to attract and win these buyers? Contact me your local Coldwell Banker® real estate representative to learn more.
jepstein@terrequity.com
416 495 2208
In today’s challenging real estate market, people are full of questions about the real estate market. As your local Coldwell Banker sales representative will tell you, one of the first questions most consumers ask is ‘What’s selling these days?’
If you’re thinking of selling, you’ll be pleased to know that homes are selling when they’re well-prepared for sale and priced right. The reason is because people buy and sell homes for lifestyle reasons. Births, marriages, new jobs, retirement and other demographic factors all drive the market, even in times of economic downturn. However, in today’s increasingly competitive market, you need the advice of a full-service professional, who knows market conditions and a home’s competition and can use this critical information in readying your home for sale.
In today’s market, successful sellers are those who have become more realistic in setting their asking price. They understand that a home isn’t a winning lottery ticket; it’s a place to raise a family and build equity over time. Your local Coldwell Banker representative can give you the straight facts on what comparable homes are selling for right now in your market. They can show you actual sales activity so you know what prices the market will bear. They can also talk to you about time on market, and let you see for yourself what’s not moving. They can also answer the all-important question of why it’s not moving.
Make no mistake, prospective buyers are out there. They’re recognizing that there is tremendous value in today’s market as lowered mortgage rates and adjusting prices have resulted in some of the best home affordability we’ve seen in many years. It’s just a matter of knowing how to create a pricing and marketing strategy that will maximize your chances to attract buyers and win offers.
If you’re thinking of selling, why not give me a call? Together, you can develop a strategy to get you a great result. Then the next time someone asks what’s selling in your neighbourhood, the answer will be – your house!
http://www.epsteinrealestate.com
Filed under: Real Estate, Market Conditions, For Sale, For Rent/Lease, Announcements, Industry, Point2, Finances, Buyer Information, Seller Information, Toronto Market Conditions, Real Estate Toronto, homes for sale
As your local Coldwell Banker® real estate professional can tell you, there’s a lot that’s good about today’s housing market. And it’s all because of the three cornerstones known in the industry as I.I.P. – Inventory, Interest rates and Price.
In most markets across Canada, these three fundamentals are creating some of the most affordable housing seen in many years. The inventory of listings is strong, giving buyers a lot to choose from. That increases the likelihood of finding the home that’s just right for you and your family. The Bank of Canada reduced interest rates again in March, and mortgage rates are now sitting at near historic lows. At the same time, home prices have adjusted to more affordable levels in most major markets across Canada.
Those three fundamentals of I.I.P. are having an impact in almost every local market. Without question, there will be many great opportunities that are ready and waiting for a savvy home buyer to take advantage of right now. In February, CREA reported an 8.6% increase in transactions over the previous month, the first monthly increase in national sales activity since September 2008. February activity also surpassed levels reported in November and December of 2008. This is a clear indication that buyers are seeing value and are coming back into the market.
Consumers need to focus on these strong fundamentals and gain confidence in housing. Some buyers still think they can time the market and are ‘sitting on the fence’ waiting for exactly the right time. This can be a costly mistake. While you’re sitting back with a ‘wait and see’ approach, the right house at the right price and the right terms may be snapped up by another buyer who recognizes the opportunity. Reading isolated news headlines is not a great way to gain balanced information about the housing market. Such news stories often focus on very short-term events. They don’t tell the ‘big picture’ of how the vast majority of Canadian homeowners have achieved solid appreciation in value within just the last few years. To make an informed decision, you need to know a great deal more information that’s specific to your target neighbourhood. Your local Coldwell Banker sales representative can tell you the whole story about your community, including such issues as historical appreciation in value, current inventory of listings, future development plans and time on market.
Why not talk to me, and get a balanced perspective on some of the opportunities in today’s market. You have nothing to lose, and it just may be the most important call you’ll ever make!
Jordan Epstein
Office:416 495 2208
Http://www.epsteinrealestate.com
jepstein@terrequity.com
Coldwell Banker Terrequity Realty, Brokerage
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• 1,306 sq. ft., 2 bath, 3 bdrm townhouse - MLS® $319,900 - PRICE REDUCED!!!
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Canada’s ‘baby boomer’ generation is the most affluent group ever seen in Canada. The ‘boomers’ have either already inherited, or are poised to inherit, their parents’ wealth. The result is a transfer of assets and an increase in discretionary income on a scope never before seen in this country. And many of these newly affluent people are deciding to invest in a second property – either a vacation home such as a cottage or ski chalet, or an investment property to appreciate in value, or generate rental income.
If you’re one of the many Canadians who’s thinking of buying a second property, your Coldwell Banker Coldwell Banker® real estate professional will tell you that you need specialized knowledge and planning to do it right. Here are just a few of the many things to take into consideration:
- Unlike your principal residence, any appreciation in value realized on the sale of a second property is considered taxable income. Therefore, the name you use to purchase the property (for example, whether it’s put in your spouse’s name) could have major tax implications at time of sale.
- Similarly, any revenue generated by an income property is also taxable.
- The good news is that most expenses incurred in the operation and maintenance of the property can be written off against income earned.
- Your insurance coverage and costs may also be affected by how you use the property. Make sure your insurance broker knows all the facts, so you won’t be caught in a situation where a future claim is denied due to using the property off season or for commercial purposes.
- Resale values for vacation properties can vary dramatically depending upon the community you choose and the services and features of the property. For example, a year-round road access cottage will generally appreciate at a higher rate than a water access cottage.
Unlike other more volatile investments, real estate has traditionally been a sound long term investment for Canadians, even in times of economic downturn. Better still, it’s also one of very few investments that you can actually enjoy while it increases in value. However, when it comes to second properties, you need to be prepared before you start if you want to avoid surprises down the road. It’s a good idea to consult your tax advisor before you buy to develop an ownership strategy and tax plan that makes the best sense for your situation. As your local Coldwell Banker real estate professional I will be glad to tell you more about the ‘ins-and-outs’ of buying a second property. Why not call today to find out more? 416- 495- 2208 or Visit my website at www.epsteinrealestate.com for additional contact information.
There’s a lot to consider when buying a home, and especially in today’s changing market conditions. As your local Coldwell Banker® sales professional will tell you, many markets across Canada are beginning to moderate and become more favourable to buyers. So while you’re considering a possible home purchase, here’s a Homebuyer “Don’t” list that may help you avoid some common mistakes:
The “DON’T” List for Prospective Homebuyers:
- DON’T fall in love with the first house or neighbourhood you see. That grand colonial with the picturesque view may win your heart at first glance, but you need to keep an open mind to make sure you find the right fit for all your needs. At the end of your search, it may turn out that the riverfront ranch that’s closer for your commute is a better bet all-around.
- DON’T buy beyond what you can afford. It’s easy to fall into that all-you-can-eat attitude, especially when it comes to your first home purchase. You "want it all" when it comes to size, amenities, location, etc. But remember that your eyes may have a larger appetite than your wallet. Make sure the down payment, closing costs, monthly expenses and taxes are truly within your income and savings range before you sign an offer.
- DON’T treat your home the way you treat your stock portfolio. It’s unrealistic and unwise to expect your housing investment to appreciate as quickly as you’d hope for your high-risk bonds. Buying for lifestyle, and remembering that real estate is a great long-term investment, will help you look at home purchasing and ownership in the right context.
- DON’T jump into a confusing mortgage. Be sure to read carefully through every aspect of the proposed agreements to fully understand your end of the bargain. For instance, an attractive rate now may be difficult to carry if rates change during the term of your mortgage. Arm yourself with information and don’t be afraid to ask questions.
- DON’T underestimate the value of your local Coldwell Banker real estate professional. While being a savvy buyer and doing your homework will help on the road to homeownership, a local expert with years of negotiating experience is invaluable when it comes to scouting out the perfect home – and closing the deal.
If you’d like to know more about our Homebuyer “Do” and “Don’t” lists, or if you have any questions about the market or the home buying process, then just pick up the phone and call me at 416 495 2208 and I will be glad to answer any of your questions. http://www.epsteinrealestate.com
For most Canadians, buying a home is the most significant investment of their lives. And although real estate sales in 2008 are continuing strong with prices still on the rise, your local Coldwell Banker® sales professional will tell you that today’s market still presents many genuine real estate opportunities for homebuyers. Housing inventory is moving up in most major centres across the country, leading to a more balanced market. Historical data demonstrates that purchasing a home has proven a sound long-term financial investment. However, homebuyers – especially first-time buyers -- are often understandably anxious when it comes time to making what could be the largest purchase in their life. Coldwell Banker Real Estate LLC has come up with some simple "do” and “don’t" lists to make the process easier for everyone dreaming of homeownership.
The Homebuyer ‘DO’ List:
- DO utilize free online tools to arm you with as much knowledge as possible. For example, the Home Price Comparison Index available at http://www.coldwellbanker.com offers buyers a way to compare average housing costs in over 400 markets across North America.
- DO access and closely review your credit score. A sound financial track record and solid credit score can help lock in a loan and lower interest rates. Check your records in advance to catch any errors ahead of time, and to better understand how lenders may perceive you.
- DO explore mortgage pre-approval. Getting this early green light will help others involved with your purchase that you are serious about home ownership – and well-qualified.
- DO line up your "all-star" team of professionals before game day. A team of experienced professionals will be key to making the home buying process simple and seamless. Start by interviewing and selecting a sales representative who you "connect" with. Your local Coldwell Banker® sales professional can help you identify suitable lawyers, mortgage lenders, home inspectors and others who play a role in the process.
- DO anticipate your future needs and buy for lifestyle. Try to anticipate how long you’ll live in your next home and plan for major lifestyle changes when possible. What may make a perfect starter home for a couple might not work as well when children come into the picture.
- DO hone in on your housing priorities. Your ideal home may have a porch, a pool and five full baths. But before you start looking, make sure to separate your "must-haves" from your "nice to haves," so you know where you can compromise to meet your budget.
Wondering about the “Don’t” list? Stay tuned for my next column, or better yet, contact me at
jepstein@terrequity.com or by phone at 416 495 2208.
Empty-nesters eager to downsize as kids leave home These days, there are a lot of differences between the real estate markets in Canada and the U.S., but there’s at least one aspect that’s common to both. We’re both seeing the impact of a major demographic group reaching a new stage in their lives, as aging ‘baby boomers’ become ‘empty nesters’ and decide its time for a change in their current real estate situation.
The importance of the ‘boomer generation’ on real estate markets across North America is expected to continue in the next few years. Not surprising, really, when you consider the numbers. According to Statistics Canada, the baby boomers, i.e. those born between 1946 and 1965, numbered 9.4 million at the 2001 Census. ‘Boomers’ represent nearly one-third of Canada’s total population, while south of the border, there are 78 million American boomers.
As boomers enter a new phase of their lives, ‘empty nesters’ are on the rise here in Canada, while sixty-six (66) percent of Coldwell Banker® real estate professionals in a recent U.S.-based survey reported an increase in home purchases from the empty nester demographic over the last three years.
The desire to downsize is the reason cited by empty nesters as the reason for a move, according to more than half of the brokers (52 percent) surveyed. This Coldwell Banker survey of 150 U.S. brokers also reflects current trends reported by brokers at the forefront in local markets here in Canada.
“Clearly the baby boomer demographic is making powerful waves across all areas of North American culture,” says Gary Hockey, president of Canadian Operations, Coldwell Banker Real Estate, LLC. “Many empty nesters are no longer content to remain in the same home from marriage to retirement, and our brokers are seeing this impact in their local markets. There’s a clear spike from boomers downsizing or changing homes once children are out of the house and we expect this trend to grow over the next few years.”
The study also found that empty nesters want to stay engaged and active, choosing homes near places where they can pursue their passions. Key findings from the survey include: - 50% of empty nesters are looking for single-family homes, while 49% are looking for condos or townhouses.
- 18% of Coldwell Banker broker respondents noted that empty nesters move in order to be closer to their children or grandchildren.
51% of brokers surveyed said empty nesters select new homes based on the proximity to services such as recreation, cultural activities and golf |
Thinking of downsizing? Give me a call and we can discuss what is right for you. http://www.epsteinrealestate.com
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Great *2yrs* NEW Condo
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Many Canadians look upon the New Year as a good time to resolve to improve our condition, or give ourselves a new look, but what about your most important investment? The start of a new year can also be the right time to make a resolution to make your home safer, or more efficient. The good news is, these changes might even save you some money in the process. And what better way to start the year off right?
A good starting point is resolving to make your home more energy efficient. There are several low cost, easy to implement alternatives that can help make a difference in our environment, and your pocketbook. For example, for a very minimal investment in the $50 range, you can buy a thermostat timer. This will allow you to pre-set your thermostat to turn back a few degrees after you go to bed at night, and turn the temperature back up before you get up each morning. If you’re normally out of the house during the day, you’ll gain even more savings and still return to a comfortable environment after work each day. Many gas and heating oil providers, as well as various government bodies offer rebates on the purchase of programmable thermostats and other energy-saving equipment. Make sure you check out a few of their websites to familiarize yourself with the terms of their various offers before you buy.
Lighting is another simple yet effective energy and cost saving device. Timing switches for prompt shut-off of outdoor lights, or lights that are only activated by motion sensor can be very effective. Indoors, dimmer switches and the new longer-lasting energy efficient light bulbs are good money savers too.
Home safety is another important New Year’s resolution for Homeowners. Start off your new year by checking the function of all smoke alarms (and if it’s not wired into the house current, replace the batteries). There should be working smoke alarms installed on every floor of your house and outside all bedroom areas. You should also consider installing a Carbon Monoxide detector and have a furnace inspection each year to be sure it’s running safely and efficiently. You might even want to consider a Home Security system. While it can be a larger investment, you may find that your Home Insurance company will offer you a lower premium if you have a security system, which can help offset the cost.
Perhaps you’re also considering a major home improvement in the New Year. That’s where your local Coldwell Banker® professional can help. They know what improvements appeal most to home buyers and how various projects will impact the resale value of your home. Why not call to find out more and start your New Year off right!
For more information please feel free to contact me anytime via email at jepstein@terrequity.com or by contating me using the contact information on my website www.epsteinrealestate.com
There’s a lot to consider when choosing a mortgage to finance your home and as your Coldwell Banker® real estate professional will tell you, making the right choice can save you thousands of dollars over the life of your loan. Here are some Mortgage ABCs that you should consider, including some key factors in determining how quickly you can pay down your mortgage and at what cost.
A Amortization period – the term, or length, of the actual loan; the shorter the amortization period, the higher the payments, but the faster you pay off the loan.
B Buyer pre-approval – you can be pre-approved for a mortgage before you even start looking for your dream home; this takes away the guesswork of how much you qualify for and strengthens your negotiating position with the seller.
C Conventional or high-ratio –The amount of your down payment determines whether yours is a conventional or high ratio mortgage. High risk loans require that you buy mortgage insurance to protect the lender if you don’t make your payments, so you’ll have to allow for this added expense.
D Down Payment – You’ll need to have money available for a down payment when you ask your lender for a mortgage. The larger the down payment, the smaller the mortgage and the less interest you’ll pay in the long run. The CMHC says down payments generally range from 5 to 25% of the purchase price.
E Equity – The value that’s present in your home; this amount is generally represented by the current market value, less any outstanding loan amounts.
F Frequency – How often you pay your mortgage can have a significant impact on how fast you build equity and retire your loan.
G Government programs – Under certain conditions, first time home buyers can withdraw RSP funds to use as a home down payment; the money can be used without tax penalty if the funds are replaced within a specified time period.
H How repaid – the method of loan repayment can also have a significant impact on what a loan ultimately costs you; open mortgages have better pre-payment privileges, but a closed mortgage may offer a better interest rate.
I Interest rate – The interest rate is of vital importance and you’ll also need to establish whether that interest rate is fixed or variable
There are other factors to consider too, such as refinancing, repayment penalties and more. Why not talk to your local Coldwell Banker real estate professional to discuss some of the many mortgage options available to you? Through their many connections, Coldwell Banker professionals can offer creative financing solutions that you may not have ever considered. Why wait? It could be the best call you’ll ever make!
For more information please feel free to contact me anytime via email at jepstein@terrequity.com or by contating me using the contact information on my website www.epsteinrealestate.com
When you buy a home, there are two very distinct types of mortgage insurance that may come into play – one is Mortgage Loan Insurance and the other is Mortgage Life Insurance. Even the names sound similar, but these two types of coverage have completely different purposes and benefits. Unfortunately, consumers sometimes confuse the two. That confusion can result in the homebuyer not really understanding what they’ve bought or making the wrong choice when deciding on coverage. Either way, you need to know the difference.
Both types of mortgage insurance will typically be raised by your mortgage lender at the time of financing. Mortgage Loan Insurance is for what is considered a high risk loan and this is determined by the amount of your down payment. If you have what is called a high ratio mortgage (less than 20% down payment) and you’re financing through a major Canadian financial institution, you’ll be required by law to take out mortgage loan insurance and you’ll be required to pay the insurance premium. Mortgage insurance protects the lender if you don’t make your payments. It doesn’t protect you, the buyer, but you must pay the premium.
For most people the hardest part of buying a home, especially the first one, is saving the down payment. Many people won’t have 20% of the purchase price to put down. With mortgage loan insurance, buyers can put as little as 5% down. Then, if the borrower defaults (fails to pay) on the mortgage, the lender is paid back by the insurer. With Mortgage Loan Insurance, many buyers who might not otherwise qualify for a loan can still get the financing for their home purchase. This stimulates the Canadian economy, while at the same time protecting our lending institutions and the stability of our overall federal economy.
CMHC (Canada Mortgage and Housing Corporation), the federal government’s housing authority, is a major provider of this type of insurance in Canada. For that reason, Mortgage Loan Insurance is frequently referred to as CMHC insurance. For more information visit the CMHC web site www.cmhc-schl.gc.ca.
The second type of mortgage insurance -- Mortgage Life Insurance – is optional coverage you can elect to buy if you want to ensure that your mortgage will be paid in full if you or a co-owner dies. It is essentially term insurance with coverage that reduces with your mortgage principal. It can be set up as joint coverage for multiple owners, with the benefit falling to the survivor(s) if one owner dies before the mortgage is paid off. Mortgage Life Insurance is offered by a number of carriers and the rates and coverage will vary according to the insurance company offering the coverage and your own personal information.
Your Coldwell Banker® real estate professional can tell you more about mortgages, insurance and the entire home buying process. Why not call today, and take advantage of their helpful advice? You’ll be glad you did!