Inside Collingwood ~ Blue Mountain

Back about 18 months ago, I can clearly remember thinking that things would change in the real estate market. Fast sales, multiple offers, interest rates, home prices... they'd all change.  After twenty years in the business, I've seen enough changing cycles of the market to know that nothing ever lasts.

18 months ago, buyers here in the Collingwood - Blue Mountain area were often frustrated because they had little time to think.  When a suitable home came on the market, it would often sell before they could arrange to see it or before they could make an offer.  They were often in competition with other eager home buyers and, they were anxious about getting into the market during a time of rising prices.  If I had said, "Don't worry.  Soon prices will soften, you'll be in a buyers market and you'll get a better interest rate," they would have called me crazy.

Well that day has arrived and buyers are in the drivers seat.
And...
... they've disappeared onto the sidelines.  Waiting.  The question is, waiting for what?

The most common reason I hear for buyers delaying a buying decision is fear.  They are afraid that prices will depress further and that whatever they buy today may be worth less tomorrow.  This is a valid concern but only to a point.  There are many factors buyers should consider and one of the most important ones is interest rates.

Right now, interest rates are at an almost historic low.  Here is a chart setting out the Bank of Canada overnight lending rate for the last decade:

The reason interest rates are so important is that they determine the bottom line of what is actually going out of your pocket each month in hard earned dollars. An increase of just 1 or 2 percentage points in the interest rate can wipe out thousands of dollars in equity over a mortgage term.  Here's an idea.  Go and visit a mortgage calculator site such as this one and play around with various purchase prices and interest rates.  Take a look at the interest based over the mortgage term and see what just 1 or 2% will do to your bottom line.

In addition, the federal and provincial governments are currently offering all kinds of incentives for home buyers ranging from closing cost rebates for first time buyers to renovation and ecoEnergy grants for homeowners. 

For many people, now really is a good time to buy and for others, it may be better to wait and see.  A REALTOR® can help you determine the right options for you and you alone.

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

The local real estate market followed national trends by posting the lowest number of monthly sales in over a decade.  The 46 sales reported in the Georgian Triangle last month represents a drop of 59% over January, 2008 and is lower than December 2008's 53 sales.

One interesting and slightly surprising trend is that, for the first time since March, 2008, the number of new listings for the month was lower than in the previous year.  For the fourth month in a row, there was a tiny uptick in consumer confidence being reported and, the North American governments have both passed stimulus budgets this month.  Could it be that potential sellers are hanging on expecting some improvements this spring?

The following information was obtained from the MLS® statistics provided by the Georgian Triangle Real Estate Board.  The first number is for January 2009 with January 2008 results in brackets:

Total Number of Sales in all areas reported:  46 (111)
Total # of Listings in all areas reported:  437 (454 )
# Active Listings as of January 31: 1714

Single Family Residential Only
(Data is limited to  Collingwood, Clearview, Grey Highlands, Meaford, Blue Mountains and Wasaga Beach areas only):
 
# of Sales:  25 (69 )
Average Sale Price:  $290,483 ($312,779 )
Sales-to-Listings Ratio: 12% (33% )
# Condo Sales:  8 (19 )
# Farms Sold:  1
# Vacant Land Sold:  0
# Commercial Sold: 0

In a nutshell:  It's a tough time to sell but it's a great time to buy.  Limited competition, lots of choice, a buyers market and most of all - low interest rates!

A few weeks ago, I learned a lesson in the obvious.  It was a lesson about how easily we can sometimes take things forgranted.

While showing properties in Blue Mountain to some buyers who were here from Asia, one of them asked me what the difference was between a cottage and a chalet.  It seems that in our discussions and in her research about Ontario real estate, the two terms came up at different times and she was curious.

It got me thinking about how I intrinsically just know the difference but it was challenging to explain in a way that made sense when I said it out loud.  So, since then I did a little homework on Google and interestingly, the terms have different usages in different parts of the world.

Generally speaking, Webster's Dictionary defines a chalet as "A wooden dwelling with a sloping roof and widely overhanging eaves, common in Switzerland and other Alpine regions."  In our part of Ontario, we typically refer to any mountain-oriented, recreational homes as chalets.  For example, a stucco dwelling used for vacations and week-ends would typically be called a chalet around here.  I've even heard many people refer to their condominium as their chalet.

In Canada, the term "cottage" usually refers to a vacation or summer home, often located near a body of water. However, according to a reference on Wiki, this type of property is more commonly called a "cabin" in Western Canada, Newfoundland and Labrador, a "chalet" in Quebec, and a camp in Northern Ontario, New Brunswick and in some northern US states.  Here in the Collingwood area, people tend to call a waterfront, vacation home a cottage.  A small and humble rural property might be referred to as a cabin.

"I'm going to the chalet this week-end to do some skiing" or, "We're going to the cottage this summer" are phrases you'll hear often.  Very generally, the location and seasonal use will dictate the default term used.

When you think about it, it's not a wonder that someone who grew up outside of Ontario may become confused about these terms.  Either way, they are very nice to have!

We interrupt his blog to bring you a little shameless self-promotion.

First, let us say that we love most of our fellow REALTORS® around here.  They are a good bunch.  But this is not about them (sorry guys and gals).

For a few years now, we've been working hard to keep you in-the-know about everything to do with Collingwood and Blue Mountain real estate or otherwise.  We've gone on ad nauseam about why you should use a REALTOR®. 

Now, we present to you more reasons why you should use us, Marg and Chris, as your REALTORS® of choice in the Collingwood and Blue Mountain area.

1. Professionally speaking, we have more than 35 years of real estate business experience under our stylish, but tasteful belts.

2. We're not one-trick ponies:  we've both enjoyed other careers in social work, banking, exporting, manufacturing, investments, administration and health.

3. We do our homework:  we read, we listen, we absorb, we go to class, we research and we share.  Oh, and we save everything!

4. We've been through recessions, downturns, being laid off or having quit; been turned down, and we've been approved; we've seen success, and worried about failure, invested and lost, and invested and won!

5. We google, oodle, twitter, blog, text, feed and kijiji.  Can you digg it?

6. We're chatty in many languages:  English, German, a little French, a little Spanish, pig-Latin and lots of Real-Estate-Lingo are spoken in our office. 

7. We've lived to tell the tale... between us, we've lived through marriage, separation, divorce, being single; being a Mom, a Dad, a sister, an aunt and a cousin, being gifted, acting stupid; being jilted, being broke, sending kids to college and university; losing parents and close family members, losing on the stock market, having accidents in cars and in our pants, being embarrassed and being proud, yelled too much, yelled too little, praised when we shouldn't have, gained weight, lost weight, survived heart attacks and breast surgery and loved with all of our hearts (which are located deep inside our bodies.)

What we're trying to say is, we've been through a lot between the two of us, so we can commiserate, empathize, sympathize and help, whenever you need our advice or expertise.  No matter what the event, it's very likely that we've been there too, so you don't have to feel alone when you're dealing with life's ups and downs.

Nuff said. 

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

We all know by now that Tuesday (January 27th, 2009) was budget day here in Canada. As expected, there are proposed initiatives to stimulate the housing industry.  That's a pretty good idea if you ask me. 

According to a study conducted by the Altus Group for the Canadian Real Estate Association,  every residential real estate transaction in Canada generates over $32,000 in ancillary consumer spending and, creates almost 95,000 full-time direct jobs as a result of that activity.

These numbers in themselves make real estate a strong economic driver in Canada. The budget recognizes that and, in a nutshell, here is a summary of the incentives proposed for home owners and home buyers:

1.  First-Time Home Buyers' Tax Credit
Assisting first-time home buyers with tax relief of up to $750.00 for the costs associated with the purchase of a home such as legal fees, disbursements and land transfer taxes.

2.  Increasing Withdrawal Limits Under the Home Buyers' Plan
Raising the limit on withdrawals for first time home buyers from $20,000 to $25,000.  With the $5,000 increase to the withdrawal limit, two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 from their RRSP funds toward the purchase of a home in Canada.   Unlike regular RRSP withdrawals, the HBP withdrawals are not included in income when withdrawn.  Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal, or included in the individual's income if not repaid.

3.  Expanding the ecoEnergy Retrofit Program  Although not a new program, this measure provides an additional $300 million over two years allowing more homes to qualify.  (Don't forget to look at it together with the Ontario Provincal Plan for additional rebates!)

4. Home Renovation Tax Credit
This is the one causing all the excitement today.  This is a temporary program that will provide a 15-per-cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010.  The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.

I would add that, in my opinion, the 2 billion dollars being set aside for municpalities is also important to homeowners as it will have a direct impact on property taxes.  In my town of Collingwood for example, the local budget decision was deferred this week pending the budget to see what infrastructure projects (sewers?) might qualify.

If you were selling or renting out your property, would you agree to provide the potential buyer or tenant with a report describing the energy efficiency of your property?  What would the results of such a report show?

In October 2008, the Ontario legislature passed the second reading of Bill 101 known as the Home Energy Rating Act.  If approved, this new act will require that owners of detached, semi-detached homes and units in multi-unit, low-rise buildings, who enter into an Agreement of Purchase and Sale on or after January 1, 2011 or into a tenancy agreement on or after January 1, 2012, will need to provide a Home Energy Rating Report of the building to a prospective buyer or tenant.  Read that again because chances are, it will affect YOU at some point.

The new act proposes that a Home Energy Report will be required that evaluates the energy efficiency of a building when it is sold or rented.

In December, Green Saver announced that it has joined forces with the Ontario Association of Home Inspectors to offer EcoEnergy home audits across Ontario with training of inspectors to commence this month.

If you anticipate selling a residential property any time after the end of 2010 or, of renting it out after the end of 2011, now might be a good time to develop a plan for improving the energy efficiency of your property. Up to $10,000 in grants are available to homeowners for retrofits done as shown in this chart of possible rebates available.  You can start with an Energy Audit which typically costs about $300.00 although right now the Ontario provincial government will automatically rebate you with $150.00.  Locally in the Collingwood area, the Environment Network has excellent information on their website outlining the steps you should take and explaining the process in general.

Really think about this.  While it seems to be getting very little notice so far, I suspect this will become a very big topic over the next couple of years.  You have a chance to help your home, your pocketbook, the environment and a successful future sale by getting started now.

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

I know that statistics and charts can be a bit mind numbing.  On the other hand, they are the story that we need to know telling us where we've been and where we might be going. 

I like to watch certain stats in particular:  the number of new listings, the number of sales, the number of price reductions but most of all, the sales to listing ratio.  That is perhaps one of the better indicators of what is going on in the market.

Let me explain this little ratio thing.  It's calculated by dividing the number of sales by the number of listings.  It gives us a snapshot of what percentage of the listings on the market are selling.  We look at them both on a monthly (or weekly) basis and also year-to-date.  Although there are divergent opinions, generally speaking, a sales-to-listing ratio of over 50% suggests that it is a SELLERS market.  Under 40% is a BUYERS market and in between, is considered to be a BALANCED market.

Right now, the sales to listing ratio is under 30% as one may expect.  That means less than 30% of properties on the market are selling.  It's clearly a BUYERS market right now.

To simplify this ratio study, I thought it might be a good time to have a pretty chart so you don't have to read and analyze the stats:

Watch the black trend lines.  When they start moving toward each other, that means the market is showing signs of improvement.  Of course, if they move apart, its not such a good thing if you are trying to sell. 

So for all you analytical types out there, I feel your need!  Hope this fills some brain space.

Handling the sale of an estate property or, a house for which you are the executor or trustee, can be stressful for many people.  Unlike a usual sale of a family home by the owner, a trustee or executor is often accountable to a larger number of people and has many more tasks to attend to.

In my experience, trustees or executors often live outside of the area and are trying to deal with matters on a long distance basis.  This can be tricky and have a good team is essential.  Lawyers, appraisers, movers, handypersons and the like are so important and a REALTOR® is often the person who pulls it all together. 

Some of the typical tasks an executor or trustee may encounter are having to inventory and distribute household effects, changing locks, arranging for an appraisal of the property, finding a real estate salesperson, arranging for lawn care or snow removal, consulting with auctioneers, reuse centres or charities, preparing the house for sale, arranging for cleaning, repairs, packers and movers, finding property documents, canceling newspapers, changing utilities and notifying insurers.  For someone residing outside of the area, where do they begin?

One of the first steps should be to find a REALTOR® who will work with you in putting together the team and detailing the arrangements with you.  An experienced agent with local contacts can be invaluable.  Take the time to seek recommendations and then interview at least three salespeople to find the right fit for you.  Taking the time to do this correctly at the outset will save you far more time down the line and will give you peace of mind.

Do you have aluminum wiring in your home?

This is an issue that comes up from time to time in home inspections and, it can be a concern for home buyers.  Some home insurers will not insure a house with this type of wiring claiming it is a fire hazard.

It is estimated that there are over 450,000 homes in Canada that are wired with aluminum wiring.  It was commonly used from 1965 to 1977.  But is it really a problem?

According to most home inspectors I've talked to, the issue is not the wiring itself but rather, it is the connections that cause the problem.  Wiring made of aluminum heats and cools causing it to expand and contract which in turn can cause connections to come loose.  A live wire dangling in a wall is not a good idea!

It's not always possible to determine if you have aluminum wiring without a professional examining the wiring at the panel but, you may be able to tell if there are cables exposed either between the open floor joists, in the basement, up in the attic, or at the service panel. If the wiring is aluminum and was
manufactured before May 1977, the outer covering of the cable will be marked, at least every 12
inches, with the word ALUMINUM, or an abbreviation, ALUM, or AL. If the cable was
manufactured after May 1977, the marking may be either ALUMINUM ACM, ALUM ACM, or ALACM.

Other indicators of a potential problem might include:

• · unusually warm or warped outlets and switch cover plates
• · smoke or sparks coming from receptacles and switches
• · strange odors in the area of receptacles and switches
• · untraceable problems with plug-in lights and appliances
• · periodic flickering of lights
• · discolouring of the wall receptacle
• · arcing or sparking

If aluminum wiring is present, the good news is that it does not need to be torn out or replaced as solutions are available at a reasonable cost.  Have a qualified electrician with experience in this area go through the house to determine the best remedies.  The City of Halifax has one of the better websites I've read explaining the issue and solutions. 

We have certainly seen a number of houses in South Georgian Bay that have aluminum wiring and there are even whole neighbourhoods where the houses were originally built with it.  Yet another good reason all home buyers should have a home inspection!

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

According to the 2001 Census, almost 15% of the Collingwood population identified themselves as being Anglican.  Locally, that congregation is served by All Saints' Anglican Church located on Elgin Street opposite St. Mary's Catholic Church downtown.

This church is said to be one of the most beautiful historic churches in Ontario and, it stands as one of the most significant early buildings in Collingwood.  I've often noticed people painting pictures or taking photographs of the adjoining former manse which is seen in galleries or books across the country.

The church was erected in 1858 and expanded in 1876.  From the history section of their website,  "Over its long history, the church has been enhanced by a number of memorials, including magnificent stained glass windows, white oak organ case and marble font as well as unique brass pulpit and lectern, a beautiful and distinctive altar and a dramatic relief carving of "The Last Supper"."

There is a terrific profile on the Heritage Collingwood site about the rectory building that includes a detailed history and beautiful photographs.  Next time you pass these buildings, I'd really recommend taking some time to really notice how special they are.

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!