Tom Germann - Sales Representative - Apex Results Realty Inc.

10/24/2017

Finally after almost 2 years the market has slowed down a little bit right now.
But there is a very real problem. Most first time home buyers are now stuck. Prices in our area have gone up so much and so fast the lenders are now concerned. This means that there are stricter lending rules. When you go in to get prequalified at the bank or mortgage broker expect that you will likely see a home appraisal after you purchase and sometimes the lender is saying NO to the property.
The answer?
Build up a deposit. Don't buy at the top price you can afford. Work on cleaning up any credit issues and pay off current debt you have.
Finally, no one likes this option.
If you still can't get in right now? Just keep saving and wait. I am not saying we are going to have a real estate collapse. But prices do tend to come down at certain times.
Also you may need to adjust your expectations.

Get planning and get everything sorted out before going out to look at property!

04/18/2017

This spring market is so hot. Reasons include a limited supply of housing inventory and a high demand.
First time home buyers are going to have the hardest time in this market. If they only have 5% down and are going into bidding war after bidding war they aren't going to win. Not in this region.
My suggestion is to try and see if you can do it successfully. At the same time keep building up the deposit and if you are not winning in competition because the lenders are putting restrictions on you, then you wait until the market slows down a little.
Build up cash reserves and have patience
Consider putting some of that deposit into RRSP's now for the tax break if you are okay pulling it out for the home buying plan....

Stay positive and calm!

04/14/2017

Our market is booming along right now and there is just not enough inventory. Sellers have an advantage if the house is updated. I brought an offer on a property and there were a total of 22 offers on that house in downtown Hamilton.

22.

With my current buyers as I am doing the ongoing research it is dangerous to say 'this is the trend'. But I have seen nicely finished properties sell for approximately 20% over list price when those properties were priced properly.

02/08/2017

The spring market is coming. In fact it looks like NOW is the time to be listing those homes for sale! Low inventory means faster sales times and higher sales prices.

12/13/2016

So interest rates may have bottomed out finally.
I can fully understand this thought. I just have a difficult time understanding why this is in a publication in Canada?
Interest rates have been at a historical low in this country for quite a while now. They have been slowly coming down for about fifteen years.
I do believe that this is as low as interest rates (for mortgages) can go. All that they can do at this point is stay at this level.
Eventually when they bump up a little bit there will be no need to panic.
Be a bit conservative, have some savings and slowly pay down that mortgage.
Remember $50 per month more on your mortgage will take almost 3 years off the life of that mortgage. $50. Per month.

11/04/2016

So we are just into October.
Better late than never, The 24 October market update from myself.
https://youtu.be/ZhGZY90WJ5A

Good day everyone! I just wanted to say life is BUSY and I am doing the best I can to get these up. The market is still booming along. We are still seeing la...

10/31/2016

Pedestal sinks. I really dislike them and would never recommend people have them unless it is in a powder room.
The problem? No storage and this will sound strange, kids tend to lean on them a great deal when they are younger. Vanity stands have more points of contact and are sturdier.
I have seen pedestal sinks that are getting loose because of age or because the kids are leaning all the time.

It may sound foolish but I really dislike pedestal sinks.

10/30/2016

So the mortgage changes that came in were supposed to lead to a flurry of new activity as people try to purchase before the new rules came into affect.

Not much point.
there is already a shortage of property on the market and a fair number of first time home buyers. The short term effect of heating the market up even more just didnt happen.

So if you want to buy and are now nervous adjust your expectations and you can still buy. It may just take a bit longer to get the downpayment or fix any issues that are slowing you down.

10/26/2016

I just drove by a mortgage office on the way to an appointment.
The signage that said "second and third mortgages at good rates" was worrying.

At some point the real estate market will adjust and prices drop.
I understand 2nd mortgages.
Stay away from the 3rd mortgages.

Don't get yourself in that situation.

10/25/2016

The new changes that have been put in place are as always meant to slow the market down as well as address whatever other issues that the government has with the real estate market.
Interesting to read if you have investment properties or are looking at getting into that in future.
http://business.financialpost.com/personal-finance/taxes/converting-your-principal-residence-into-a-rental-property-or-vice-versa-heres-what-ottawas-new-rules-mean-for-you

Recently announced changes to the principal residence exemption (PRE) and has prompted a flurry of questions from readers — here’s a quick review of the rules

07/20/2016

The market has been hot. It is still moving along, properties are selling in the summer.
But the huge insane rush that we just saw has slowed down.

Prepare for the fall market.

06/20/2016

So this year is going to be strong and next year we will see prices flatten out.
Possibly.
With such large and fast gains housing affordability becomes an issue. Income has not gone up as fast as housing prices.
How can people afford to buy when a detached home costs over $500,000 in a market?
They buy a starter, such as a townhouse or apartment. The people who ARE buying the detached house either have good jobs and have been preparing for a while OR they have just sold their attractive starter.
Higher prices are in every segment of the market.
I do agree with the idea that housing prices should flatten out so that everything else can in essence 'catch up'. But I am not sure if short of government intervention we have the circumstances that are necessary to force a drop.
The government has tried to slow our market before and failed in the GTA. Perhaps the Buyers and Sellers will do that now instead.
From The financial Post
15 June 2016:
http://business.financialpost.com/personal-finance/mortgages-real-estate/canadas-crazy-real-estate-ride-to-slow-down-in-2017-realtors-say

Home sales are expected to soar 6% by the end of the year, but 2017 is a different story, with sales barely eking out 0.2% gain