Category Archives: Investors

This is the area to discuss investments.

Toronto Record Sales

The Toronto Real Estate Board reported that in July the average price of resales was up 6% over last July and sales were through the roof. Condo sales in Toronto are on fire! I have not seen this enthusiasm spread to condo life in Oakville for condos over 500K. In my opinion it is only a matter of time before this surge hits the higher priced units and we see high end inventory start to shrink and prices rise. After a tough start to the year the next price change for higher end condos on the market may be UP!

Cheers..Doug Izon P. Eng. Real Estate Broker, Century21 Dreams 905-599-1265 www.EyesOnOakville.com; Mortgage Broker, AMP, Centum Total Mortgage Services Inc. Lic # 10646 www.TotalMortgageServices.ca

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From 8% to 48% in 6 Months WOW

Six months ago I wrote how the sales to listing ratio was 8% over the previous 2 months. https://eyesonoakville.wordpress.com/2009/01/24/the-8-challenge/ I just ran the numbers for Oakville and over the last 30 days we sold 359 homes and there are currently 738 homes on the market. The current sales to listing ratio is 48%. How did we go from 8% to 48% in just 6 months in an environment where unemployment is high and the recovery is questioned? WOW WOW WOW I quess it answers the questions raised by my observations of multiple offers and interest rates 2 months ago https://eyesonoakville.wordpress.com/2009/05/31/multiple-offers-interest-rates/

Homebuyers are telling us something here with their wallets. Is it a blip? Time will tell but just as I noted the extreme of 8% in Dec/Jan it is imperative to point out that 48% sales to listing ratio can not be sustained without reducing inventory and the subsequent supply and demand impact of higher prices. Will we cool on sales or are prices going to spike? I thnk prices are headed up-What do you think?

Cheers..Doug Izon P. Eng. Real Estate Broker, Century21 Dreams 905-599-1265 www.EyesOnOakville.com; Mortgage Broker, Centum Total Mortgage Services Inc. Lic # 10646 www.eyesonoakville.ca

Multiple Offers, Interest Rates

 Toronto Star reported today that the multiple offer scenarios for homes have returned. In a front page article they discussed recent activity where the Realtor has priced the property low and offers come pouring in.  It is interesting as 2 weeks ago they had a story how foreclosures and power of sales had doubled. I believe the press is starting to get a little more positive about the housing outlook.  In Oakville over the past month we sold 38% of the approximate 1000 homes on the market. This is very healthy. The other influence on the housing market is that the 5 year fixed mortgage rate is increasing with increases by .1-.2% from many lenders.  Increases in interest rates may cause a temporary buying spurt as buyers fear losing the opportunity to afford a home. The other interesting observation is that the adjustable rate is coming down slightly to prime plus .4%. As the fixed rate rises and the variable rate drops there may be more people going variable. This may cause grief when the prime goes up. I remain optimistic on the outlook for housing and believe that now is a great time to buy. The stats over the next few months will tell if others agree.
Cheers..Doug Izon P. Eng. Real Estate Broker, Century21 Dreams 905-599-1265 www.EyesOnOakville.com; Mortgage Broker, Centum Total Mortgage Services Inc. Lic # 10646 www.eyesonoakville.ca

Contrarian or Go With The Trend?

In December 2008 in Oakville we sold 8 homes for every 100 homes for sale (8%). During the last 30 days we sold 40 homes in Oakville for every 100 for sale (40%). This is now a very healthy market.
Homes in the lower price ranges are selling well. Higher priced homes/condos  continue to sit ignored and forgotten as buyers are still licking their wounds from the stock market and banking meltdown. If you are a trend follower you may say buy a home where there is lots of action. In this case you would buy into the lower market segment that is active and has increased from its lows.
Eventually the pendulum swings and the higher priced properties will again be courted. They can only be ignored for so long. I am sitting in a high end condo doing an open house today where there are 13 listings and nothing has sold in 3 months. This will not last. The contrarian would buy the higher priced property now, when demand is low, sellers are frustrated, and prices are soft. The opportunities are many, the risks are relatively low and my contention is now is the time to buy. Now is the time to buy that property that you could not afford 7 months ago. You may not be able to afford it 7 months from now.

Cheers..Doug Izon P. Eng. Real Estate Broker, Century21 Dreams 905-599-1265 www.EyesOnOakville.com; Mortgage Broker, Centum Total Mortgage Services Inc. Lic # 10646

The 8% Challenge

Home sales is not a matter of getting in a long single line and waiting your turn. It is lining up against the gym wall and being selected for the competitive sports teams.

 

As a realtor or as a home seller how are you handling the 8% Challenge?

The Sales to Listings Ratio (Total Sales in Month to Total # Active Listings at the end of the month) over the last 2 months in Oakville, Ontario, Canada is around 8%. What does this imply? Out of 100 available homes for sale in Oakville 8 will sell this month, 92 will not. Will your home be one of the 8 or one of the 92? You might think that next month your chances are greater to sell your house because now there are only 92 homes available and you know that 8 of those will sell and eventually the market will get around to buying your home. It is just a matter of time. The reality is that there are 16 new listings added each month replacing the 8 that sold so next month we may sell 9 out of 108 homes to maintain that 8% sales/listing ratio.

The message is that in Oakville if you want to sell your house this month the entire “package” better be in the top 8%.

Your home must be priced in the top 8%.

Your home must be staged in the top 8%.

Your home must be available, clean, inviting, and fluffed in the top 8%

Your realtor must be doing a top 8% job in marketing and selling your home.

Now the ratio mix may change and you may have a great realtor but not so great stager and still sell your home but on average with all things considered you need to be in the top 8% to sell your home this month.

What are you doing to ensure that one of the homes sold next month is yours?

What are you doing to meet the 8% challenge?

 

Cheers  Doug Izon P.Eng., Broker, Century 21 Dreams 905-599-1265 http://www.EyesOnOakville.com

 

Toronto Commercial Real Estate-Get Super Rich Seminar

I attended a Free Seminar today on “How to Get Super Rich with Toronto’s Commercial Real Estate”. I saw an ad in the Toronto Star and the speaker Cherif Medawar gave a great talk for 2 hours. Cherif is an excellent speaker and gave the audience of approx 200 investors lots to consider.  Cherif is the founder of the Institute of Commercial Real Estate which is a training institute. They are promoting a 1 year membership to the “Institute” which includes web site access, fellow investors interactions and commercial opportunities and listings. It was a pleasant 2 hours, I did not sign up for the 3 day session, but I did pick up some useful concepts on commercial investing. I really enjoy the “free” real estate seminars as they are a great source of information and they are also an education on how to run presentations and “close the deal”. Cheers Doug Izon, P.Eng., Broker, Century 21 Dreams Inc. 905-599-1265, www.EyesOnOakville.com , doug@EyesOnOakville.com

SUCCESSFUL LAKEFRONT LAUNCH

Last weekend was the Grand Opening of the “BeachHouse” development by Branthaven Homes.  http://www.branthaven.com/brancontent.html This development is directly on Lake Ontario on Beach Blvd in Hamilton. I always like unique properties. They have 29 of the 55 townhomes in the project that face directly on and are only 50 m from Lake Ontario.  Branthaven sold many of the townhomes though individual appointments with clients who pre registered. When I arrived on the Sunday of the Grand Opening weekend they had 8 homes left with 3 on the water. Prices on the water are $450K for 1400 sq ft over 3 levels. Congratulations to Branthaven on selling 80% of this unique project. They are doing something right to have such success in a very competitive market.  Cheers Doug Izon, P.Eng., Broker, Century 21 Dreams Inc. 1-800-605-5909 www.EyesOnOakville.com doug@eyesonoakville.com