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| Compliments of George Ulubabian Sales Representative |
DID YOU KNOW? MLS Niagara Region Listing and Sales for all properties to March 31, 2011: · The number of listings YTD: 4,895, down -19% vs. 2010 · The number of Sales YTD 1,795 vs. 2,162 in 2010, down -17% · The Total Sales Dollar Volume YTD:
$399,545,899; down -16% over last year. · The number of expired Listing YTD: 1549; up 8%. · Number of Active Listings 4,781. (Source MLS® Statistics Report, Niagara Association of REALTORS®) Your Referrals are appreciated! Thank you again for recommending me to friends, coworkers and family! | The Spring Heat and Interest Rates |
Though it has been a long winter and spring weather has been slow to arrive, the Spring Market is upon us. There is now a definite increase in the number of home purchases being transacted. It’s amazing how much weather can influence home sales. Mortgage Rates Have Also Risen Yet now, compared to only a few weeks back, mortgage rates have also increased. For a while one could get a 5-year fixed mortgage for as little as 3.69% as a best rate. Currently, Centum Financial Group is currently displaying a best rate of 4.09% and a bank posted rate of 5.49%. Without question, 4.09% is still an extremely good rate making buying extremely attractive. From 35 to 30 Years Yet here is how the change in best rate can affect affordability. Let’s use the 5-year fixed rate and today’s reduced maximum amortization of 30 years. Prior to March 18th, 2011 the maximum amortization was 35 years. Now let’s say you qualify for a monthly interest and principal payment of around $916.00 plus or minus. Here’s how it stacks up. · At a rate of 3.69% and at $916.25 per month you would qualify for a mortgage of $200,000. · At a rate of 4.09% and at $916.31 per month you would qualify for a mortgage of $190,650. Affect on Affordability As can be seen, this reduces the mortgage amount you qualify for--and in turn how much house you can afford--by $9,350. What if you do qualify for a $200,000 mortgage? How much more would it cost you? The monthly payment on $200,000 at 4.09% would be $961.25. That’s an increase of $44.98 per month and $539.76 per year. The Rate Increase vs. Rate of Inflation The best rate increase works out to a 4.91% increase compared to the inflation rate of 3.3% which was last reported in March 2011. This though may be an unfair comparison, as mortgage rates can fluctuate. We’ve been told that rates may continue to increase. The Good News is…. Having said all that, the good news is that mortgage rates are still a great value for potential buyers today, improving affordability compared to just a couple of years ago. NOTE: Best rates are offered to mortgage shoppers with excellent credit. Quoted rates are reflective of a person’s credit history. | | | Pricing Your Home--a Minefield of Styles |
Many sellers interview two or three REALTORS® before they decide with whom to list their home. Sellers want to feel comfortable and confident in the REALTOR® they choose. They also consider reputation and trustworthiness as two critical factors in evaluating whether the salesperson is the right fit. That’s why 64% of sellers use a salesperson who was referred to them or they had worked with before*. Of course, as a seller, you want a professional who will evaluate your property to achieve the best market price. To this end, salespeople employ a variety of styles and approaches. 1. One salesperson may walk through your home and suggest a price on the spot. It might be based strictly on experience and possibly a couple of comparable sales that quickly come to mind. This price blurting is hard to substantiate to you and can often be off the mark—sometimes low and usually too high. 2. Another might arrive with some neighbourhood sales to review with you after inspecting your home. There is little attempt to analyze features and benefits closely, just an attempt to arrive at a ball park. Again the result can be less than accurate. 3. A third approach is to show up with a pricing and presentation. On inspecting your home the salesperson quickly makes mental adjustments on your home’s value based on how your home compares with sold and listed properties included in the presentation. Even the most experienced can err with this on-the-spot analysis. 4. A fourth will take the time to inspect the neighbourhood and your home closely, take notes, ask questions about the care and maintenance of your home and uncover features and benefits, as well as any needed repairs. This individual does not discuss price in this initial meeting. A Proper Standard of Care to Achieve Your Best Price This fourth salesperson has learned that appropriate preliminary research is essential to applying a standard of care that more readily achieves best market price, within a reasonable time frame and with the least amount of hassles for you. Back at the office, and armed with your home’s information, this salesperson will research the market and perform an in depth analysis and evaluation. The purpose is to meet with you a second time to review and discuss their findings. This professional approach helps you to more confidently determine your best price with substantiated market information, thought out adjustments and accepted valuation practices, greatly minimizing the possibly of error. A professional approach is always best. *NAR 2010 Profile of Buyers and Sellers How’s the Market Market Overview for Single Family Homes To April 30, 2011 The number of listings for single family homes is down, on average, by -8.1% across all municipalities in the Niagara Region. As well, the number of sales is down by -17.8% YTD; only Fort Erie shows an increase of about 8.6% compared to 2010. Area | Average Sale Price | %'age | | 2011 | 2010 | Change | April 30, 2011 YTD | 12-Month | 12-Month | 12-Month | NOL | $457,995 | $407,695 | 12.3% | Niag. Falls | $210,722 | $211,302 | -0.3% | Fort Erie | $182,689 | $193,847 | -5.8% | St. Catharines | $218,789 | $210,711 | 3.8% | Thorold | $204,665 | $194,122 | 5.4% | Pelham/Fonthill | $321,936 | $319,883 | 0.6% | Welland | $178,205 | $178,241 | 0.0% | Port/Wainfleet | $186,983 | $183,449 | 1.9% | Linc/West Linc | $290,403 | $277,922 | 4.5% |
The 12-mth average sale price, overall, is up by 1.9%; Fort Erie’s is down: -5.8%, Niagara Falls: -.3% and Welland is .0%.
The Sales to List Ratio averaged out to 41% overall. Note: Average sale price does not reflect the value of a home. This requires a market analysis and comparison of homes sold that are similar to yours. In certain areas of a city the average price may vary from the city’s average. (Source: MLS® Statistics Report, NAR) Thinking of Selling or Buying? Call for a No Obligation Consultation. Ask Me | What’s My Home Worth? | What did My Neighbour’s Home Sell For? | To List or Buy a Property,
Give Me a Call or e-mail me | I can help you with all your real estate needs | George Ulubabian at 905-321-6121 | george.ulubabian@century21.ca | Visit My Website: www.gurealtor.com | | TODAY REALTY LTD Brokerage Independently owned & operated |
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