Real Estate Insider: May 2018 News Report

Hello there, Real Estate Insiders! Get ready for some of the most important topics we've discovered yet. Why you need a lawyer if you're selling your house, the best way to approach mortgage renewal, and why it's harder for Millennials to buy are just a few of the reads we have in store for you. 

There’s a lot of things you can do to save some money, but skipping out on a Real Estate lawyer when buying a home should NEVER be one of them! Read why it can end up costing you way more than the legal fees if you decide to buy a home without a lawyer. >>

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While owning a condominium in Toronto and renting it out may seem like a great investment, it appears nearly half aren’t getting enough rent to cover their costs. Is it still worth it? >>

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If you sold your home after 2016 and didn’t report it to CRA, you might be looking at hefty fine! Read here to stay updated on all the forms and necessary steps to avoid an unwanted call from the CRA. >>

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If you own a rental property with more than two people, tax season can be tricky! Be sure to know how to split these taxes fairly, and you can start by reading this article! >>

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If you are thinking of investing in your first rental property, this article is for you. Be better prepared to make this decision. Should it be a house or condo? Duplex? Where are you living now? This article has all the right questions you might not have thought to ask! >>

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“My mortgage comes up for renewal this year.” If you are in the same boat as these authors then you should definitely read their mortgage renewal strategy to help with your own! >>

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Think that if you can afford the down payment and the mortgage payments you can afford a house? Think again! There are a lot of costs involved in buying a home and we want to make sure you are financially prepared for all of them. Read this list so there are no surprises on closing day! >>

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Real Estate Lawyers discuss the "5 Things to Know about Government Standard Lease Form”. >>

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The 2018 OSFI stress test has cut Millennial purchasing power by over $40,000! What does that mean for first time home buyers? >>

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With a lot of things now being done online, should dealing with a mortgage broker be one of them? Read the pros and cons of going online for a mortgage. >>

Has The Local Real Estate Market Cooled Off?

It's hard to tell from the unseasonably warm weather, but we are a couple weeks into the fall season. The autumn real estate market is well under way and even if the weather hasn’t cooled off yet, our local real estate market (Windsor, Ontario) is certainly feeling a drop in temperature. Today we are going to discuss a few of the factors that have led to this cooling.

Sellers Have Adjusted Their Prices Upwards

This makes a lot of sense. We had a pretty crazy first 8 months of the year. Multiple offers were everywhere, properties were selling considerably over list price and it was a great time to be a seller.  As this continued, the market adjusted and realtors and sellers began to adjust their prices to these new comps. As prices increased, demand levelled out to a more balanced market place.

Interest Rates Were Raised A Couple Times

The Bank of Canada (BOC) has now increased the benchmark interest rate two times this year, for a total of 50 bps (0.5%). Although this is a minor increase, it has affected affordability and how much house a buyer can qualify for.  The BOC seems to be indicating that they are also planning further hikes into 2018. This has led to a modest softening in demand.

Trickle Down From The Toronto Market

After a series of measures introduced earlier this year to slow the housing market, the government seems to be finally succeeding. Sales are way down, prices are stalling and deals signed in the spring are running into snags at closing. A large segment of the demand in our market was coming from Toronto buyers who were relocating and/or investing in our market. Suddenly, properties that used to sell in a few days are sitting on the market for a couple months. Because of these developments, this pool of buyers has seemed to slow and put a dent in demand.

General Uncertainty

There seems to be lots of bad headlines out there right now: the Liberals are planning to change the taxation of professional corporations; anything Trump related; the US, Canada & Mexico are renegotiating NAFTA; North Korea’s nuclear program; hurricanes causing havoc; flooding (which we experienced locally); and terrorist attacks. Uncertainty is never good for markets. Markets operate on confidence, which is sometimes a fragile thing. It's difficult to quantify how much confidence is shaken by these types of events, but combined with the above factors, it probably has some impact on demand.

Sometimes it's hard to figure out cause and effect in markets but those are some of the factors we see cooling our local market. What are your thoughts on this subject? We’d love to hear from you.

Real Estate Insider: September 2017 News Report

Welcome back to the Lalovich Real Estate Insider! We've been busy reading a tonne of topics and wanted to share the best finds with you. How much do you need to make to buy a house in Toronto? How did a multi-million dollar home street sell for less than $100k in California? What does the end of the Canadian housing bubble market mean for you? Find out the answers and much more in this edition. Enjoy!

Don’t be tricked by ‘buzz words’; make sure you know your options when applying for insurance. >>

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Looking at the house price-to-rent index, to balance out from the recent spike in housing prices, value either needs to go down or rent needs to come up. Based on this, the OECD predicts a 28% decline in home prices by 2020. Read more here >>

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The Ontario Real Estate Association is stepping up to become the self proclaimed “watch dog” for the industry’s regulatory body. This transformation is catalyzed by the fact that as of 2020, they will no longer be providing real estate education. Read more about the transformation here >>

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Thinking of becoming a landlord? Here are 10 tips to follow to make your rental property a successful one. >>

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A change of heart ended up costing this buyer $360,000! Learn why walking away from a deal could cost you more than just your deposit. >>

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While the housing boom drew thousands into the Real Estate career, the inevitable slowdown is expected to decimate the ranks of the inexperienced realtors. >>

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A private street in San Francisco with 35 Mega-Million Dollar mansions was sold to a couple for $90,100… all because of a $994 unpaid tax bill. Read why here >>

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Are you getting the best rates on your mortgage? Experts say people need to start comparing mortgage rates the same way they do when booking flights or hotels. Read the startling facts here >>

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Thinking of moving to Toronto? A recent study has found that to afford the average detached home, residents need an average income close to $200,000. >>

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Deciding what to do with your rental properties? Considering entering the rental property market? Be sure to read this list of every indicator to consider when selling an investment property. >> 

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Going with traditional: a new mixed commercial/residential building is planned for an empty Walkerville area lot, becoming one of the first buildings of its type built there in a long time. >>

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Learning from past mistakes: it seems as though Canada’s housing market bubble is officially over, without the notoriously feared “pop”. >>

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Buyer's remorse: people are scrambling to close after the recent cool down of the housing market. >>

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The real estate association believes it's time to increase the penalty for unethical behaviour in the real estate profession and is lobbying for stricter regulations due to the fact that the current regulations are close to 15 years old. >>

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Feel like you're paying too much for your mortgage? It's likely you've made one of the top five costly homeowner financial mistakes. Find out here >>