BARBARA GRUMME’S BLOG!

Information by Rebbecca Cook from “The Globe & Mail”

July’s month-over-month drop in sales 27% confirms fear that end of government incentives to spur home buying would kill the resurgence of the real estate sector

The U.S. housing market has taken a sharp turn for the worse. In July, the number of existing single-family homes that changed hands slowed to a pace not seen in 15 years, plunging a record of 27% from a month earlier, the national association of Realtors said. The drop was much worse than economists had predicted. Government incentives to spur homes buying expired this spring, housing sales would fall with a thud. Economic uncertainty is no the rise. The grim data sent investors scurrying for the protection of safer assets, hurting stocks and pumping up government bonds.

Renewed weakness in housing will set off alarm bells for those who fear the U.S. economy could be heading into a double-dip recession, though most economists still believe that’s unlikely.

An increasing number of homebuyers are looking for a property to accommodate more than one generation of their family, says a recent survey by Coldwell Banker Real Estate of its network of real estate professionals across Canada and the U.S.

37% of the survey respondents saw an increased demand for multi-generational homes, while in Canada the number was even higher at 45%.

In Canada, 52% of all Coldwell Banker survey respondents cited health care issues as the No.1 reason why home buyers or sellers would move into a house with other generations of their family. Financial drivers followed closely behind (45%), while less than 1%cited a strong family bond as the main factor. John Geha, president of Coldwell Banker Canada, says:

“With two or three generations living under one roof, families often experience more flexible schedules, more quality time with one another and can better juggle caretaking responsibilities as healthcare issues arise.”

Communicating with family is key to successful transition. “Talk to everyone involved and determine how comfortable people are with sharing bathrooms, office space or common areas, and let that guide your search,” Geha says. “All of these topics are incredibly important in finding the right kind of home to fit the family – like one that has four bathrooms or one that has three.”

The company says extended families purchasing a home together should consider signing a written contract outlining everything from finances to chores and childcare. Each family should assess their situation individually and find a plan that works best for them.

*INFORMATION BY REM

The Canadian Real Estate Association (CREA) has lowered it’s forecast for homes sales via the Multiple Listing Service (MLS) Systems of Canadian real state Boars and Associations. The revision reflects a weaker than expected start to the year in recent developments that pulled forward the timing as to when sales are expected to ease in other provinces.

Additionally, changes to mortgage regulations announced in February are expected to marginally impact activity. The changes prompted some homebuyers to finance their home purchase before the new regulations took effect in April, which pulled forward a number of sales that would have otherwise take place at a later date.

“Interest rates are expected to rise slowly and at a measured pace during a new era of government spending restraint, so home financing will remain within reach for many homebuyers,” said CREA President Georges Pahud.

CREA had previously forecasted sales would remain at elevated levels through the first half of 2010 before easing in the second half of the year and over 2011. While forecasted trend for activity has not changed in CREA’s revised forecast, it as been pulled forward, with the fourth quarter of 2009 marking the peak of national activity. This has had the effect of lowering the forecast for national activity over the rest of the year.

MLS Statistic Report

Residential (Single family) Activity by Area

[MARCH 2010]

Sales/listings                 Average Sale Price      %’age

Area                       YTD                           MONTH                     Change

Sellers seeking divine intervention

Can faith really move homes as well as mountains? By Toby Welch

It’s not surprising that home sellers look for help anywhere they can find it. The Catholic tradition of planting a statue of St. Joseph in the front yard of the home you are trying to sell isn’t just for religion zealots. Sales of the St. Joseph home selling kit skyrocket every time the housing market hits a slump. Can faith really move homes as well as mountains?

Where does this belief come from? Rumor has it that St. Teresa of Avila (A.D. 1515 – 1582) had an expanding order that required the building of a new, larger nunnery. The nun’s coffers weren’t full enough to buy the land on which to build the convent so St. Teresa buried medals with St. Joseph’s likeness on the desired property.

Having been born 450 Years too late, I have no personal confirmation of the matter but allegedly the pleas to St. Joseph worked. As centuries flew by, the custom evolved into burying a St. Joseph statue to hasten the sale of a home.

St. Joseph is the patron saint of employment and the home. Joseph was the husband of the Virgin Mary in the Bible, the earthly father of Jesus. He has a history in the real estate world.

Catholic author and Biblical scholar Stephen J. Binz, has written a book on the topic. St. Joseph, My Real Estate Agent: The Patron Saint of Home Life and Home Selling. Binz says “I believe God an work in people’s lives in all sorts of ways without our really understanding them.” The book details the life of the saint and explains that burying a statue is a way of asking St. Joseph to look after one’s own family the way that Joseph provided for his own family, Mary and Jesus.

When burying the statue, you can’t just dig a hole and toss the statue inside, there is a protocol to follow. TE most prevalent practice is to bury the statue upside down with his feet facing the heavens, close to the For Sale sign in the front yard. The hole should be three inches deeper than the statue itself. When you insert the statue, it should be facing the direction of the street. The statue should be placed in a burial bag (Usually included in the kit) before being placed in the ground. Apartment and condo dwellers with no outside space should bury the statue in a potted plant on the patio. Before covering the statue with dirt, a prayer should be said to St. Joseph. Most kits come with a card with suggestions on what to say. Once the house sells the statue should be dug up, cleaned off, and placed in a spot of honour in the new home.

Does the St. Joseph statue really work or is it a bunch of babble? Some proclaim it is nonsense yet others are true believers in the statue’s power. Considering that millions of St. Joseph statue home-selling kits are sold every year through websites, religious goods stores, eBay and hardware stores, this custom shows that people are willing to try almost anything when it comes to selling their homes.

REM June 2010 by Toby Welch

What is title insurance?

Title insurance is a policy of insurance that provides coverage for the title related risks associate with real estate transactions. It is designed to cover the unpredictable or undetectable issues such as forgery, fraud, missing heirs, etc. that can affect rights of ownership. Because it is insurance, a title insurance policy moves the risk associate with title from the home buyer, the lending institution or the lawyer, to the title insurer.

If there is a problem with title that only becomes known after closing, the title insurer may rectify the problem or compensate the title insurance policy holder, provided the type of problem tat surfaces is covered by the title insurance policy.

A title insurance policy will contain:

Risks or losses the policy will cover;

Risks or losses the policy will not cover; and

General terms governing the insurance coverage.

For additional details,

Insurance checklist

Be prepared. These are some of the basic questions you may be asked in your application for insurance:

Is the home located in a known “problem” area such as a flood plain, or in an area prone to mudslides?

Yes____ No____

How old is the home?

____ years or built in _____

Type: ________________

What type of roof does it have? (Shingle, steel, shakes, etc)

Roof type __________

How old is the roof?

_______ Years old or installed in _____

$____________

Is the home connected to municipal service or on a septic and well system?

Municipal services _____ Septic and well_______

What type of heating system does the home have (Oil, electric, solar, etc?)

Heating type ________

Is there any form of wood burning appliance in the home

Yes____ No ____

Is it certified? Yes____ No____

What type of electrical entry is there?

110V_____ 220V_____

Does the home have smoke detectors?

Yes ____ NO____

How far is the home from the nearest fire hydrant or fire station?

___km from nearest hydrant _____ from nearest fire station

How you ever had an insurance policy declined or cancelled?

Yes____ No_____

This information is by

CREA

The Canadian Real Estate Association

Info@crea.ca

There has been growing concern in the real estate industry about the escalating cost and availability of property insurance. Insurance companies have refused to insure homes that have been previously covered. In other cases, companies have decided to raise insurance premiums by a considerable amount. Provincial governments are responsible for regulation of the insurance industry, including the cost of premiums and the availability of products. The federal government’s responsibility is limited to ensuring that insurance companies are financially sound. If you’re buying a home these days, you have to think about insurance. It could affect whether or not you get the home you want.

Home insurance companies have tightened their underwriting criteria and they’re reluctant to take on risks that may not have bothered them in the past. Banks won’t approve a home loan unless there is proof of insurance.

A number of home insurance issues have been identified that can impact the transaction process. These issues can include:

▪         Aluminum wiring – demands to retrofit and/or change completely to copper

▪         60 amp electrical service – not deemed to be sufficient regardless of the size of dwelling

▪         Knob and tube wiring

▪         Gas furnaces more than 20 years old

▪         Oil tanks

▪         Wood burning appliances – WETT certification is being measured against current building codes

▪         First time buyers without prior home insurance history

▪         Insurability point system now used by insurers which may be detrimental to first time buyers. This includes “red zoning” because of the location of the property

This information is by

CREA

The Canadian Real Estate Association

Info@crea.ca

Unless you have a guaranteed employer relocation package or a rich relative, you basically have 3 buying options when selling.

Option 1. You can start looking and on finding the home you want, negotiate an offer on condition that your home sells.

In this scenario the Seller will include a provision stating that he can actively continue to market his home. If he receives another offer, you are notified to remove your conditions and buy the home or abandon the purchase. If your mortgage approval is subject to your home being sold, you have no choice but to let the home go and your search begins again.

This approach can be discouraging if other homes don’t seem to measure up to the one you lost. On the bright side, equally good homes are available and new listings continue to appear. With patience you’ll find your dream home. 

Option 2. You wait and make an offer to buy only after negotiating a sale on your home.

This is a strong preference as it gives you more leverage when making an offer to purchase. You’ll have a more accurate accounting of the equity from your sale, and you’ll be in a stronger negotiating position.

One possible down side deals with the closing date on the home you sold. Will it give you enough time to find another home? As well, will the Seller of your intended purchase be able to accommodate your required closing date. If not, will it be possible to renegotiate the closing date on your sale? Sometimes it gets a bit tricky.

Option 3. You discuss the possibility of a bridge loan with your lender.

If the lender approves, you can actively look and negotiate an offer without a condition to sell your home. Alternatively, you can make an offer with a sale condition and, should another offer comes along that the Seller is willing to accept, you can remove your conditions upon being notified.

Until your home sells you may have to carry the cost of two homes. This approach depends on one’s tolerance for risk.

A Word of Caution: Once notified of another offer by the Seller, a Buyer usually has only 48 hours to remove all conditions, hardly enough time to meet additional provisions, like a home inspection. Satisfy other conditions well before receiving notification of another offer.            

With each option any number of subtle differences can occur. Let your REALTOR® help and advise you on how to best work through these nuances.

Information by:

Century 21 news.

Compliments of:

Guy Gray
Salesperson

guy.gray@century21.ca   

Established in 1991, Niagara Analytical Laboratories set forth a commitment to our community to offer high quality, timely environmental testing services at better-than competitive pricing.

We are surrounded by one of the most essential elements in life; WATER.  And while we in the Niagara Peninsula, in conjunction with our neighbours to the south, are all striving for zero-discharge to our waterways in order to provide pure, clean drinking water to our families and future generations, there has always been an underlying element of public concern.

Whether your new or existing residence is on public/municipal or a private water supply (well, cistern, shore well), affordable testing and treatment are but a phone call away.

The serenity of being in a rural surrounding deems it nearly necessary for some type of water treatment.  Be it “water softening” to remove abrasive mineral content, fine filtration to remove nuisance suspended material, or Ultra-Violet or Chlorination to disinfect for bacterial content, our Chemists, Microbiologists and Water Treatment Division are here to assist.

The convenience of being on public water services had historically given homeowners piece-of-mind that safe drinking water was at each of our kitchen faucets.  And while our governments work so very hard to achieve this basic need, it’s unlikely that we’ll ever be able to erase the perils of Walkerton from our minds.  Point-of-consumption, streamlined UV and impeccable Reverse Osmosis drinking water systems are added amenities that are available.

Please visit our website to meet our Staff at: www.nalabs.ca

And please don’t hesitate to contact us at: 905-374-LABS (5227)

The Staff of Niagara Analytical Laboratories Inc.

Starting July 1, 2010 Ontarians can expect to pay a harmonized sales tax of 13 per cent on a long list goods and services previously exempt from the Provincial Sales Tax. While the impact of the tax will be felt by all Ontarians, the province’s three million homeowners and the thousands who buy and sell a home every year will be hit particularly hard by this latest tax grab.

Realtors know how important the dream of homeownership is to Ontario families. Unfortunately, thanks to the forthcoming HST, that dream is going to become much more expensive. Every residential real estate transaction in Ontario will face a significant tax increase — expect to pay eight per cent more on legal fees, appraisals, real estate commissions, condo fees, home inspection fees, moving costs and the provincial government’s recently introduced system of mandatory home energy audits.

According to the Ontario Real Estate Association (OREA), Ontarians will pay, on average, an additional $1,449 in new taxes on their next residential real estate transaction.

While the government plans to placate homeowners by offering cheques and modest income tax reductions, these measures will in no way offset this new tax. A onetime payment of $1,000 (for a family of four) and a modest $368 reduction in income taxes will do little to offset the burden of an eight-per cent tax increase on a litany of items in perpetuity.

Angela Higgins

President Niagara Association of REALTORS ®

St. Catharines