When winter gets gloomy, it's comforting to know that spring is just a few short months away.
Spring is revitalizing. There are more hours of energy-giving sunshine, happy little flowers start springing to life, and lenders fight like alley cats for spring mortgage business. (Yes, great mortgage deals can be invigorating!).
Indeed, "spring market" is prime time in the home loans business. Some mortgage planners do over half their annual volume in the four months from March to June.
Real estate activity reflects a somewhat similar upswing. Higher volumes make spring a prized opportunity for lenders to build market share and make progress on their revenue targets. That can spark some sizzling rate discounts.
With spring market around the corner, someone asked the other day if lenders will start lowering rates soon. The answer is "probably" ..... in the near term anyway.
Longer out, it's impossible to foretell what this spring will bring. Most analysts call for relatively flat rates over the next 1 - 2 quarters, and that may be true. But we can't kid ourselves. The next 4-5 months are not without upside rate risk.
Among the possibilities:
The Euro-debt crisis could boil over that would potentially drive yields lower fixed mortgage rates typically move in tandem with yields, but the exception is when systemic risk makes investors demand higher returns on mortgages. The default of a Euro-member could therefore be a net negative for mortgage rates, for at least some period of time. The Italian 10-year bond provides a guage of European risk. A new high in Italy's yields (e.g., a 10-year bond over 7.5%) would signal stormy weather ahead. Europe could get a happy ending. If the EU assured the world that its debt crisis was contained, traders would likely sell "safe" North American treasuries and buy riskier assets. This asset rotation could drive up bond yields and, due to their linkage, fixed mortgage rates. By contrast, variable discounts from prime, could actually improve in this scenario. Inflation could scare the bejesus out of fixed income investors. Traders don't need to see actual inflation, just the threat of it. This too would let some air out of the bond bubble. Other things being equal, yields and mortgage rates would rise as a result. For what it's worth, analysts assign very low probabilities of inflationary pressure in the near term. Yet another possibility is an ongoing diet of lacklustre economic performance. That may not make for an upbeat spring, but at least it would be a plus for mortgage rates.
Whatever happens, hold your hat tight, because the 2012 spring rate market will come with surprises.
And if your mortgage is closing in the next 180 days, don't sit back to see how all the news plays out. Cover your ass-ets with a rate hold!!!
Monday, 6 February 2012
Monday, 23 January 2012
10 Deadly Mistakes Buyers Make When Buying A Home!
1) Making an Offer on a home without being prequalified.
This step will make your purchase easier - take the time to speak to a lender.
Their specific questions in regard to income, debt, etc., will help you determine the price range
you can afford. It is an essential step to homeownership.
2) Limiting your search to open houses, ads or the internet.
Many homes listed in magazines or on the internet have already been sold. Your best course
of action is to contact a Re/Max Realtor. They have up-to-date information that is unavailable
to the general public and are the best resource to help you find the home you want.
3) Choosing a Real Estate Sales Representative who is not committed to forming a strong
business relationship with you.
Making a connection with the right Realtor is crucial. Choose a professional who is dedicated
to serving your needs - before, during and after the sale.
4) Thinking that there is only one perfect house out there.
Buying a home is a process of elimination, not selection. New properties arrive on the market daily,
so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares
similar homes that have recently sold, or are still for sale.
5) Not considering long-term needs.
It is important to think ahead. Will the home suit your needs 2-5 years from now?
6) Not having a home inspection.
Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect
issues that many buyers can overlook.
7) Not examining insurance issues.
Advice from an insurance agent can provide you with answers to any concerns you may have. You
might be looking at a home with knob and tube wiring, etc. Purchase adequate insurance. Get a
quote.
8) Not buying mortgage insurance.
Except in the case where you may have enough life insurance to pay off the mortgage in case of death,
mortgage insurance is likely the best coverage. Make sure that both spouses are covered.
9) Not knowing total costs involved.
Ask your Realtor or Lender up-front, for an estimate of closing costs: Land Transfer Tax; Legal Fees;
Appraisal Fees and Canada Mortgage And Housing Corporation (CMHC) insurance cost (in the case of
a High Ratio Mortgage).
10)Not following through on due diligence.
Buyers should make a list of any major concerns they have regarding schools; neighbourhood;
powerlines; environmental conditions etc. Ask the important questions before you make an offer
on a home. Be diligent, so that you can have confidence in your purchase.
This step will make your purchase easier - take the time to speak to a lender.
Their specific questions in regard to income, debt, etc., will help you determine the price range
you can afford. It is an essential step to homeownership.
2) Limiting your search to open houses, ads or the internet.
Many homes listed in magazines or on the internet have already been sold. Your best course
of action is to contact a Re/Max Realtor. They have up-to-date information that is unavailable
to the general public and are the best resource to help you find the home you want.
3) Choosing a Real Estate Sales Representative who is not committed to forming a strong
business relationship with you.
Making a connection with the right Realtor is crucial. Choose a professional who is dedicated
to serving your needs - before, during and after the sale.
4) Thinking that there is only one perfect house out there.
Buying a home is a process of elimination, not selection. New properties arrive on the market daily,
so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares
similar homes that have recently sold, or are still for sale.
5) Not considering long-term needs.
It is important to think ahead. Will the home suit your needs 2-5 years from now?
6) Not having a home inspection.
Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect
issues that many buyers can overlook.
7) Not examining insurance issues.
Advice from an insurance agent can provide you with answers to any concerns you may have. You
might be looking at a home with knob and tube wiring, etc. Purchase adequate insurance. Get a
quote.
8) Not buying mortgage insurance.
Except in the case where you may have enough life insurance to pay off the mortgage in case of death,
mortgage insurance is likely the best coverage. Make sure that both spouses are covered.
9) Not knowing total costs involved.
Ask your Realtor or Lender up-front, for an estimate of closing costs: Land Transfer Tax; Legal Fees;
Appraisal Fees and Canada Mortgage And Housing Corporation (CMHC) insurance cost (in the case of
a High Ratio Mortgage).
10)Not following through on due diligence.
Buyers should make a list of any major concerns they have regarding schools; neighbourhood;
powerlines; environmental conditions etc. Ask the important questions before you make an offer
on a home. Be diligent, so that you can have confidence in your purchase.
Monday, 16 January 2012
Market Watch - Second-Best Year on Record for Sales
January 5, 2012 - Greater Toronto REALTORS reported 4,718 transactions through the TorontoMLS system in December 2011. The December result capped off the second-best year on record under the current Toronto Real Estate Board (TREB) boundaries. Total sales for 2011 amounted to 89,347 - up four per cent in comparison to 2010.
"Low borrowing costs kept Buyers confident in their ability to comfortably cover their mortgage payments along with major housing costs," said TREB President Richard Silver. "If Buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area," added Silver.
The average selling price in December was $451,436 - up four (4) per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight (8) per cent in comparison to the average of $431,276 in 2010.
Months if inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices," said Jason Mercer, TREB's Senior Manager of Market Analysis.
TREB's baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four (4) per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook," continued Mercer.
"Low borrowing costs kept Buyers confident in their ability to comfortably cover their mortgage payments along with major housing costs," said TREB President Richard Silver. "If Buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area," added Silver.
The average selling price in December was $451,436 - up four (4) per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight (8) per cent in comparison to the average of $431,276 in 2010.
Months if inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices," said Jason Mercer, TREB's Senior Manager of Market Analysis.
TREB's baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four (4) per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook," continued Mercer.
Monday, 2 January 2012
HAPPY NEW YEAR!!!!!
Happy New Year to Everyone. Hope the holidays were enjoyable and that we all got an apportunity to spend with our families and friends. Times have changed so much over the years. I remember when I was a teenager, my home was always full of family over the Christmas holidays. My immediate family consisted of five siblings, their spouses, my parents and 12 nieces and nephews.
Guess who always had to clean up and do the dishes on Christmas day?? And we had no dishwasher at the time! Whew!! It took me over an hour to get that done.
Looking back, I'll do it over and over again if I had to. All in all, it was precious time spent with my family and the memories will always stay with me. My husband and I miss those times terribly whenever we spend the holidays here in Canada. Most of our family lives in Trinidad and so we miss out on a lot of the family gatherings and fun. We are grateful, though, because we get to go back almost every year. And sometimes for Christmas also.
Let us celebrate and ring in the New Year with gratitude. Gratitude for even the smallest gifts that we are blessed with. Things which, if we didn't have, would make our lifes more difficult and trying. But most of all, let's be grateful for opening our eyes each day and being able to welcome the new day with all the beautiful opportunities it brings to us. Time is always of the essence, and life is what we "will it to be".
Have an amazing 2012, filled with good health, happiness and prosperity.
Radha Diaram
Guess who always had to clean up and do the dishes on Christmas day?? And we had no dishwasher at the time! Whew!! It took me over an hour to get that done.
Looking back, I'll do it over and over again if I had to. All in all, it was precious time spent with my family and the memories will always stay with me. My husband and I miss those times terribly whenever we spend the holidays here in Canada. Most of our family lives in Trinidad and so we miss out on a lot of the family gatherings and fun. We are grateful, though, because we get to go back almost every year. And sometimes for Christmas also.
Let us celebrate and ring in the New Year with gratitude. Gratitude for even the smallest gifts that we are blessed with. Things which, if we didn't have, would make our lifes more difficult and trying. But most of all, let's be grateful for opening our eyes each day and being able to welcome the new day with all the beautiful opportunities it brings to us. Time is always of the essence, and life is what we "will it to be".
Have an amazing 2012, filled with good health, happiness and prosperity.
Radha Diaram
Tuesday, 6 December 2011
Funny Christmas Story
Don't Try This at Home!
Pastor Tony is walking down the street on Christmas eve when he notices a Larry, a small boy, trying to press the doorbell of a house across the street. However, Larry is very small and the doorbell is too high for him to reach. After watching the boy's efforts for some time, Pastor Tony moves closer to Larry's position. He steps smartly across the street, walks up behind the little fellow and, placing his hand kindly on the child's shoulder, leans over and gives the doorbell a solid ring.
Crouching down to Larry's level, Pastor Tony smiles benevolently and asks, 'And now what, my little man?'
To which Larry replies with a beaming grin,
'Now we run!'
Sincerely
Radha Diaram
ReMax Real Estate Centre Inc.
(800)461-2686
www.radhadiaram.com
Monday, 21 November 2011
10 Thing You Should Know About Selling Your Home
Tip #1: The Most Effective Ways To Attract Buyers To Your Home:
There are several ways to attract buyers and create quality traffic. The National Association of Realtors conducted a study to see what works and what doesn't. The surprising part of the study revealed that the techniques that worked, cost very little money. The ideas that didn't work were the ones that you would think that were effective - like Sunday morning newspaper advertising, radio,, billboards etc. What was most effective was good looking signage, a broker's network of associates, prospects, and hard work.
Tip #2: Getting Top Dollar In Today's Market:
An elusive subject because of its subjectivity to your competition. One person's dream, another's dog. Always start with a fresh coat of paint on the front door/trim and the interior walls. You come closer to getting your money back with paint and landscaping than anything else. Eliminate clutter. It's easier to dream when there's less to see.
Tip #3: Know Your Legal Obligations When Selling Your Home and Minimize Your Risk:
In one simple statement, TELL THE TRUTH!!!! There have been more lawsuits because of Sellers lying just a little on material defects that they know about their houses, but did not disclose to the Buyer. Realtors have access to all the forms you need to enjoy a problem-free transaction. Don't hide problems. If Buyers find them during inspections, they'll know you've lied. If they find your problem afterwards, you lose in court.
Tip #4: How You Should Approach Selling Your Home And Current Home Selling Strategies:
Keep It Simple Stupid (KISS) should always be the focus. When there is less to look at, it is easier to make a decision. Think about when you last bought a car or piece of jewellery. Smart retailers keep the clutter down and the buying environment pleasant. Don't underestimate the power of the smell of cookies or scented candles, background music and alternate lighting. In one simple statement: SELL THE DREAM!!!
Tip #5: How Much You Should Spend and How You Should Spend It Before Selling Your Home:
Try to keep your improvements to cosmetic upgrades unless there are glaring capital improvements to be made. Paint and landscaping dollars spent will almost always be returned to you in the form of a higher sales price or a quicker sale. Additionally, new light switch covers, regrouting tile surfaces, buffing or refinishing hardwoods and wall papering selected rooms are other great ideas. Concentrate on the icing, not the cake!!!
Tip #6: The Importance Of Real Estate Market Conditions:
The value of your home is based on what Buyers are willing to pay for it.. Values rise or fall based on the number of buyers in the market.
Tip #7: Using A Realtor - How To Choose One:
There is a great value in using a Realtor and I have seen limited success at doing it yourself. The problems arise in co-ordination, what you say and when, disclosure and solving Buyer's inspection issues - All are possible legal entanglements for the Seller or even worse, not selling the house. There is a Seller's Report that has 15 questions you should ask every Realtor you interview.
Tip #8: Selling Your Home Within The First 60 Days:
Presentation is everything. Buyers are in your home for only 15 - 20 minutes. Do everything you can for a memorable impression, so they will come back for a second look. People remember landscaping, so go buy some seasonal colour. Mow and edge frequently. That's the last thing they see when they leave too. Price is everything. You have to be priced within reasonable limits. If not, you'll sit on the market in the best of times. Paint is cheap. Buy neutral (not crimson red, etc.). If you must upgrade, start in the bathrooms and kitchen with the plumbing and light fixtures. Only when you stir the emotions in a prospective buyer, will you see a purchase offer. Again, seek out the help of professionals who make their living selling, decorating or designing homes.
Tip #9: The Keys To Multiple Contracts And A Quick Sale:
The idea to remember, here, is to create URGENCY. This is such an important ingredient in the sales process, it can't be underestimated. Car dealers create urgency by showing a limited number of the best selling cars. Doctors create urgency by giving you the bad news quickly. Retailers do it by having a 1-day SALE......Better hurry while stocks last!!! In real estate, where you have an abundance of rooftops, generating visible traffic creates that urgency. The best way to do it is with Open Houses and Signage. With directional signs that point to your property and Open Houses, prospective Buyers bump into other prospective buyers. Amazingly, when one buyer starts speaking in the 1st person possessive, someone else wants to beat them to it.
Tip #10: The Importance Of Getting Your Home Into Showing Shape:
This really falls in the category of fine-tuning. After the walls have been painted, the hardwood refinished, carpets cleaned, etc., time should be spent on setting the stage for the perfect showing - EVERY TIME! Your efforts should be directed on appealing to your Buyers' five senses - SMELL - Cookies or bread in the oven, candles or potpourri. TASTE - If it's a hot day, make some lemonade or have some of those cookies for your buyers. SIGHT - You should have taken care of this before. HEARING - Always have some soft background music playing. TOUCH - All wood surfaces should be polished; no dust and always have your best pillows, linens and furniture displayed. Buyers are in your house for only a short period of time. The message you want to convey is that you want them to love your home as much as you do!!
There are several ways to attract buyers and create quality traffic. The National Association of Realtors conducted a study to see what works and what doesn't. The surprising part of the study revealed that the techniques that worked, cost very little money. The ideas that didn't work were the ones that you would think that were effective - like Sunday morning newspaper advertising, radio,, billboards etc. What was most effective was good looking signage, a broker's network of associates, prospects, and hard work.
Tip #2: Getting Top Dollar In Today's Market:
An elusive subject because of its subjectivity to your competition. One person's dream, another's dog. Always start with a fresh coat of paint on the front door/trim and the interior walls. You come closer to getting your money back with paint and landscaping than anything else. Eliminate clutter. It's easier to dream when there's less to see.
Tip #3: Know Your Legal Obligations When Selling Your Home and Minimize Your Risk:
In one simple statement, TELL THE TRUTH!!!! There have been more lawsuits because of Sellers lying just a little on material defects that they know about their houses, but did not disclose to the Buyer. Realtors have access to all the forms you need to enjoy a problem-free transaction. Don't hide problems. If Buyers find them during inspections, they'll know you've lied. If they find your problem afterwards, you lose in court.
Tip #4: How You Should Approach Selling Your Home And Current Home Selling Strategies:
Keep It Simple Stupid (KISS) should always be the focus. When there is less to look at, it is easier to make a decision. Think about when you last bought a car or piece of jewellery. Smart retailers keep the clutter down and the buying environment pleasant. Don't underestimate the power of the smell of cookies or scented candles, background music and alternate lighting. In one simple statement: SELL THE DREAM!!!
Tip #5: How Much You Should Spend and How You Should Spend It Before Selling Your Home:
Try to keep your improvements to cosmetic upgrades unless there are glaring capital improvements to be made. Paint and landscaping dollars spent will almost always be returned to you in the form of a higher sales price or a quicker sale. Additionally, new light switch covers, regrouting tile surfaces, buffing or refinishing hardwoods and wall papering selected rooms are other great ideas. Concentrate on the icing, not the cake!!!
Tip #6: The Importance Of Real Estate Market Conditions:
The value of your home is based on what Buyers are willing to pay for it.. Values rise or fall based on the number of buyers in the market.
Tip #7: Using A Realtor - How To Choose One:
There is a great value in using a Realtor and I have seen limited success at doing it yourself. The problems arise in co-ordination, what you say and when, disclosure and solving Buyer's inspection issues - All are possible legal entanglements for the Seller or even worse, not selling the house. There is a Seller's Report that has 15 questions you should ask every Realtor you interview.
Tip #8: Selling Your Home Within The First 60 Days:
Presentation is everything. Buyers are in your home for only 15 - 20 minutes. Do everything you can for a memorable impression, so they will come back for a second look. People remember landscaping, so go buy some seasonal colour. Mow and edge frequently. That's the last thing they see when they leave too. Price is everything. You have to be priced within reasonable limits. If not, you'll sit on the market in the best of times. Paint is cheap. Buy neutral (not crimson red, etc.). If you must upgrade, start in the bathrooms and kitchen with the plumbing and light fixtures. Only when you stir the emotions in a prospective buyer, will you see a purchase offer. Again, seek out the help of professionals who make their living selling, decorating or designing homes.
Tip #9: The Keys To Multiple Contracts And A Quick Sale:
The idea to remember, here, is to create URGENCY. This is such an important ingredient in the sales process, it can't be underestimated. Car dealers create urgency by showing a limited number of the best selling cars. Doctors create urgency by giving you the bad news quickly. Retailers do it by having a 1-day SALE......Better hurry while stocks last!!! In real estate, where you have an abundance of rooftops, generating visible traffic creates that urgency. The best way to do it is with Open Houses and Signage. With directional signs that point to your property and Open Houses, prospective Buyers bump into other prospective buyers. Amazingly, when one buyer starts speaking in the 1st person possessive, someone else wants to beat them to it.
Tip #10: The Importance Of Getting Your Home Into Showing Shape:
This really falls in the category of fine-tuning. After the walls have been painted, the hardwood refinished, carpets cleaned, etc., time should be spent on setting the stage for the perfect showing - EVERY TIME! Your efforts should be directed on appealing to your Buyers' five senses - SMELL - Cookies or bread in the oven, candles or potpourri. TASTE - If it's a hot day, make some lemonade or have some of those cookies for your buyers. SIGHT - You should have taken care of this before. HEARING - Always have some soft background music playing. TOUCH - All wood surfaces should be polished; no dust and always have your best pillows, linens and furniture displayed. Buyers are in your house for only a short period of time. The message you want to convey is that you want them to love your home as much as you do!!
EXPECT A QUICK PURCHASE CONTRACT!!!!
Monday, 14 November 2011
Making Your Winter Mornings a Little Easier
With winter fast upon us, we want to be able to do everything possible to make driving less stressful for our loved ones and ourselves.
Here are some handy tips to help you out:
1) KEEP YOUR HEADLIGHTS CLEAR - with car wax! Just wipe ordinary car wax on your headlights. It contains special water repellents that will prevent that messy mixture from accumulating on your lights and it lasts for approximately 6 weeks.
2) SQUEAK-PROOF YOUR WIPERS - with rubbing alcohol! Wipe the wipers with a cloth saturated with rubbing alcohol or ammonia. This one trick can make badly streaking and squeaking wipers change to near perfect silence and clarity.
3) ICE-PROOF YOUR WINDOWS - with vinegar! Frost on its way? Just fill a spray bottle with three parts vinegar and one part water and spritz it on all your windows at night. In the morning, they'll be clear of icy mess. Vinegar contains acetic acid, which raises the melting point of water - preventing water from freezing.
4) PREVENT CAR DOORS FROM FREEZING SHUT - with cooking spray! Spritz cooking oil on the rubber seals around car doors and rub it in with a paper towel. The cooking spray prevents water from melting into the rubber.
5) FOG-PROOF YOUR WINDSHIELD - with shaving cream! Spray some shaving cream on the inside of your windshield and wipe it off with paper towels. Shaving cream has many of the same ingredients found in commercial de-foggers.
6) DE-ICE YOUR LOCK IN SECONDS - with hand sanitizer! Just put some hand sanitizer gel on the key and the lock and the problem is solved.
Tune in next week for more informative ideas and tips!!!
Have a great week ahead and be safe.
Sincerely
Radha Diaram
ReMax Real Estate Centre Inc.
(800)461-2686
www.radhadiaram.com
Sincerely
Radha Diaram (Sales Representative)
Remax Real Estate Centre Inc.
115 First Street 2 County Court Blvd. Suite 150
Orangeville ON L9W 3J8 Brampton ON L6W 3W8
(800) 461-2686 (905) 703-8677
E-Mail: radhadiaram@remax.net
Here are some handy tips to help you out:
1) KEEP YOUR HEADLIGHTS CLEAR - with car wax! Just wipe ordinary car wax on your headlights. It contains special water repellents that will prevent that messy mixture from accumulating on your lights and it lasts for approximately 6 weeks.
2) SQUEAK-PROOF YOUR WIPERS - with rubbing alcohol! Wipe the wipers with a cloth saturated with rubbing alcohol or ammonia. This one trick can make badly streaking and squeaking wipers change to near perfect silence and clarity.
3) ICE-PROOF YOUR WINDOWS - with vinegar! Frost on its way? Just fill a spray bottle with three parts vinegar and one part water and spritz it on all your windows at night. In the morning, they'll be clear of icy mess. Vinegar contains acetic acid, which raises the melting point of water - preventing water from freezing.
4) PREVENT CAR DOORS FROM FREEZING SHUT - with cooking spray! Spritz cooking oil on the rubber seals around car doors and rub it in with a paper towel. The cooking spray prevents water from melting into the rubber.
5) FOG-PROOF YOUR WINDSHIELD - with shaving cream! Spray some shaving cream on the inside of your windshield and wipe it off with paper towels. Shaving cream has many of the same ingredients found in commercial de-foggers.
6) DE-ICE YOUR LOCK IN SECONDS - with hand sanitizer! Just put some hand sanitizer gel on the key and the lock and the problem is solved.
Tune in next week for more informative ideas and tips!!!
Have a great week ahead and be safe.
Sincerely
Radha Diaram
ReMax Real Estate Centre Inc.
(800)461-2686
www.radhadiaram.com
Sincerely
Radha Diaram (Sales Representative)
Remax Real Estate Centre Inc.
115 First Street 2 County Court Blvd. Suite 150
Orangeville ON L9W 3J8 Brampton ON L6W 3W8
(800) 461-2686 (905) 703-8677
E-Mail: radhadiaram@remax.net
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