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

Barbara is constantly looking for ways to improve her service and ensure your home gets sold in this challenging economic climate. Barbara’s success rate is at least 20% higher than other real estate agents. Why? Barbara is Niagara’s only real estate sales agent to use a whole marketing team to bring extra quality and expertise to help her sell your home!

To contact Barbara Grumme
Please call the Century 21 office in Niagara Falls 905-356-9100
Or
Email her at barbara.grumme@century21.ca

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

Can insurance issues stop a real estate transaction?

Insurance companies will review a variety of factors in determining both the availability of property insurance, including the persona records of the applicant. They will review the age of the home, it’s “insurance history” and look for any of the issues identified. In rural properties, insurance companies may also review the certification of the well and septic system.

There are no insurance industry standards as each insurance company can develop their own policy requirements. The Insurance Bureau of Canada (IBC) does publish recommendations for standardized criteria to member companies, but these are recommendations only.

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

The Canadian Press

Canada’s real estate market didn’t fall as hard or fast as in the U.S., but some spots did suffer steep losses and a recovery will be slow as buyers worry about another potential economic dip, a new report suggests.

Total losses in value across Canada will average between 10 to 20 per cent compared to the highs of two years ago, according to the study by PricewaterhouseCoopers and the Urban Land Institute.

But some areas saw a much deeper drop. The report released Wednesday predicts a slow recovery to begin by the end of next year.

“For 2010, we are rating only fair investment outlooks for most property types and predict generally weak conditions for development,” said Chris Potter of PricewaterhouseCoopers.

“Limp demand threatens to soften property cash flows across all sectors and most markets.”

The report is based on surveys of more than 900 real estate developers, lenders, brokers and consultants in both Canada and the U.S.

It shows Canadian industry is still worried about suffering more economic shocks, particularly from the U.S. financial system.

That is despite conservative banking practices in Canada and stricter regulation that saved many Canadian investors from overleveraging during the recent housing recession.

The report forecasts a relatively stable market for developments such as condos, hotels and other developments, which will favour buyers over sellers.

The report says the prospects for apartment investments rank barely above a fair rating at 5.44 out of 10, followed by office at 5.04, retail at five, industrial/distribution at 4.68 and hotels at 3.69.

“We expect to see developers curbing their activity in light of softened demand as bankers rein in construction loans,” said Lori-Ann Beausoleil, also of PricewaterhouseCoopers.

She said certain condo projects will likely “stall out” until residential prices firm up in Vancouver and Toronto.

Beausoleil said Canadian office markets performed better than expected, with vacancies averaging about eight per cent, with rates much higher in cities such as Calgary where demand remains weak.

by

Sharon Linwood, AMP

Dominon Lending Centres

www.SharonLinwood.ca