Posted January 26, 2012

DON’T WAIT FOR SPRING! Seriously, if you have a house to sell and you are waiting till spring, when the grass is green and the trees and shrubs are at their best, don’t. Sell now! There are many buyers out there – and we have some of them – just waiting for another house to come on the market. If your house is in the $ 200,000 to $ 300,000 range and is located in Old Dartmouth, Southdale or Brightwood  you may get a premium by listing now rather than waiting.

There are literally no decent homes available fitting the above description so give us a call at 423-5111 for a no obligation, complimentary consultation.

News Flash! No boom and bust real estate market in Nova Scotia. Would you settle for a “mini-boom and then back to normal” scenario? On October 19, 2011 it was announced that the Irving Shipyard in Halifax was to be awarded the largest procurement contract, of the three available, for Canadian Navy ships. Let the hysteria begin! Well, it began and now I think the euphoria will start to fade somewhat as people come to realize that most of the hiring will not start for two or three years. The announcement did spark some activity in November and December as people reacted to the possibility that prices would increase with demand. Some first time buyers who were sitting on the fence quickly jumped off and started to look with more intent and a few investors bought condominiums and small income properties. And now, life is pretty much back to normal.

Here are a few urban Halifax/Dartmouth stats for your edification: Single family home sales jumped from 73 units in November/December of 2010 (av. price $ 314,975) to 120 units in the same months of 2011. The average price actually went down to $ 310,316. Condo sales for the same two months went up from 28 in 2010 to 51 units in 2011. Again the price went down. In the case of condos the price went from $ 314,723 in 2010 to         $ 281,396 this past year. Don’t read too much into the price declines. Two months is a small sample period and year over year changes are a better indication of market trends.

It appears that January sales will finish just slightly ahead of last year with prices remaining stable. My prediction? The boom is over and it will be business as usual for the rest of 2012.

Posted January 11, 2012

Mortgage Rate Alert! Happy New Year. I just realized that we haven't posted lately and my New Years resolution was to post more useful information. OOPS! Oh well, let's start the year off right with some great mortgage news: One of our favourite mortgage people, Andrew Gibson at BMO Bank of Montreal, has just announced a rate special for a 5 year fixed at 2.99%, good until January 25. You can reach Andrew at 421-3429 or andrew.gibson@BMO.com

Our two other favourite mortgage people are Scotiabanks' Shawna Snair - 448-2007, shawna.snair@scotiabank.com and Rod MacInnis at The Mortgage Centre - 488-3702, macinnis.r@mortgagecentre.com. I'm sure their rates are competative and all three offer great service.

Oh, and if you need a house or condo to go with that mortgage, feel free to give us a call.

Posted November 28, 2011

So how will the Irving ship building contract effect the real estate industry? The short answer: It already has had an effect. I thought it would take at least a year before we saw an increase in real estate traffic, but it appears that things are already starting to move. November is usually the time when things start to slow down and REALTORS start getting ready for the spring market. Not so this year as sales activity is still rolling along at a good clip as we speak. This weekend Thelma and I were busy with out of town buyers looking for a condo. One buyer is a European resident looking for a pied a terre because he has been making regular business trips to the province and thought that a condo might be a good investment. The second buyers are investors from Upper Canada who are motivated specifically by the "Ships" news. A condo will not give them much in the way of positive cash flow, but their goal is to have an easy to manage investment that will give them a good return in 5 to 10 years time. I think they are both making a wise investment.

I took a look at the stats on the weekend and found a substantial increase in sales in the month of November in urban Halifax/Dartmouth. Sales of single family homes in November, 2010 totalled 44 units, while the same month this year has already seen 68 homes sold. It is a similar story for codominiums: November 2010, 12 units sold, November 2011, 29 sales. That's a serious increase and if the trend continues price increases should follow.

In my opinion, there are two main causes for the increase in sales and they are both related to the ship building contract: First, there are a few investors who are buying properties in the hope that prices will go up and they will get a major increase in their equity and considering the volitility of the stock market, that's not a bad bet. Secondly, people who have been sitting on the fence about buying a home have become more active and are acting to avoid a possible price increase. I don't think we will ever see a crazy market like those in Vancouver and Toronto, but I do think we could see double digit price increases in the near future. Any questions; feel free to call or drop by for coffee and a chat.

Posted November 8, 2010

With the exciting news that Irving Shipbuilding has been approved as the builder of record for the largest of the federal government ship building contracts, people are wondering how the increased workforce and the resulting increase in economic activity will effect the real estate market. The answer is “positively”. How’s that for stating the obvious?

The degree to which the market will be affected is a more difficult question and requires deeper analysis than we at Innovative Real Estate have the time or resources to execute.

Suffice it to say that the impact will be significant. Thousands of new jobs will be created over the next five or more years and many of the workers filling the jobs will be moving to the Halifax/Dartmouth area from outside the province over that time.

To put it into perspective, in the past 12 months 5,429 residential properties changed hands in the HRM. If only 500 new home buyers arrive in any given year, that would increase sales by almost 10%, putting serious upward pressure on house prices. Since we have seen steady but modest growth in prices – even when, in some years, sales have declined – it is safe to assume that there will be a more dramatic growth in prices over the next ten years.  

Posted October 7, 2011

To: Nova Scotia Association of REALTORS.

Please pass along these comments regarding the NSAR campaign to stop new fees on new construction in the HRM.

I would like to make it clear that I do not support this NSAR initiative. One could argue back and forth about whether this will hurt sales and consequently cut into the revenue of REALTORS®. It is my position that it will not adversely affect the sales figures in the region. If prices of new homes go up by $ 2,000 per unit, I do not believe that it will slow sales. The recent increase of 2% in the HST did not seem to slow sales. $ 2,000 on the price of a $300,000 home is less than 1%. Regardless, as a resident and business owner in the urban core of the HRM, I have good reason to support these fees.

Over the years, I have watched the appalling spread of urban sprawl to the detriment of our urban areas and established neighbourhoods. Residential and commercial taxes raised from urban and existing residential taxpayers have been used to subsidize builders and developers of new developments. Infill and greyfield development would create housing and commercial development in places where the infrastructure already exists and help revitalize the urban parts of our municipality and thus, contribute towards keeping our taxes lower. Such urban development activities are discouraged by current tax policies. Unfortunately, it will always be cheaper and easier to clear a forest and create a new subdivision as long as current taxpayers are building roads, providing water and sewer and constructing new schools for these new subdivisions. Asking builders and buyers of new homes to contribute to the cost of the new infrastructure is not unreasonable. Curtailing urban sprawl would also be helpful in protecting the environment by encouraging more people to live and work on the Halifax Peninsula and in Old Dartmouth. Make no mistake, the multi-million dollar widening of Bayers Road is not being done for West End residents. It is being done to accommodate commuters – who refuse to carpool or use public transit – who drive in from newly created and subsidized suburban areas.

This fee is long over due and should be initiated as soon as possible to avoid any further erosion of our downtown areas and established neighbourhoods. The current approach is not sustainable and will adversely affect all residents of the HRM. Organized real estate has a responsibility to look beyond the perceived negative affect on our incomes and support initiatives that will benefit the entire community, now and in the future.

Sincerely,

Trevor Parsons

Posted September 7, 2011

The Real Estate market in urban Halifax/Dartmouth, as usual is showing little change over last year. In August of 2011 there were 89 sales at an average price of $ 278,239 compared to 75 sold units at an average price of $ 280,870 in August of 2010. Because statistics for one month don’t really tell a story we looked at “year to date” stats and found pretty much the same thing: The average price in 2010 so far was $ 293,483 compared to an average price of $ 308,083 in 2011. Unit sales were 217 for 2010 and 186 in 2011.

The other market I wanted to mention is the Farmers’ Market – not just the Dartmouth Farmers’ Market, but the markets all over the province. The fall is a great time to travel our beautiful province and a little planning will allow you to visit a market or two while you visit your favorite hiking trail, canoe, kayak or biking route or you just take a drive to admire the fall colours. You can find a list of markets at this site: http://www.selectnovascotia.ca/index.php?cid=12 Just click on Farmers Markets in the category box and you will get information on virtually every market in the province. And don't forget that every dollar you spend at the market will stay here in the province.

Posted August 15, 2011

Rate Watch. Here are few examples of current mortgage rates as provided by Rod MacInnis at The Mortgage Centre: 3 yr. closed - 3.39%, 5 yr. closed - 3.44%, 10 yr. closed - 4.99. According to Rod, no down payment mortgage loans are still a possibility and don't forget, if you're buying or considering a re-finance, call a mortgage officer and reserve a rate hold for up to 120 days. Rod MacInnis can be reached at 422-6707. For mortgage specialists, we also like Shauna Snair at Scotia Bank at 448-2007 and BMO, Bank of Montreal's Andrew Gibson who can be reached at 421-3429.

Posted August 11, 2011

What About the Local Market? Yesterday's post was a bit of a broad overview and I hope at least some people found it interesting, but I know most people are more interested in what's happening locally. So am I. And in regard to the HRM/Nova Scotia real estate market, I'm feeling quite optimistic. I think that the local market will remain stable as long as interest rates remain low. Sales should be stable with no big increases and prices will probably see the usual modest increases.

By the way, there are things we can all do to have a positive effect on our local economy. Things like thinking about where our money goes before we buy. For example, refuse to buy produce from the U.S and Mexico when there are local options. I buy 80% of my food at the Dartmouth Farmers' Market. Nothing makes me madder than seeing blueberries from B.C. (probably grown in Mexico and packed in B.C.) in the Superstore in the middle of our blueberry season. Support our local farmers and support our local economy.

Renovating? Well, there are a number of local manufacturers and fabricators of housing components that can be sourced right here in Atlantic Canada; items such as furnaces, windows, doors and lumber to name a few. I prefer shopping at Kent rather than Home Depot because they are a New Brunswick company. A side benefit is that the service just happens to be better - staff are more helpful and knowledgeable. As someone who hates shopping, I get a bit more pleasure out of the experience when I think I'm doing my little bit to help out the local economy. Happy shopping.

Posted August 10, 2011

Looking Like a Rough Ride Ahead? Maybe. Maybe not - at least not as bad as the U.S. anyway. While the Dow Jones took another serious tumble yesterday, the TSX actually went up substantially. So why won't it be as bad in Canada? Well, there are many possible reasons: First, thanks to our government legislated lending rules, we never had a housing crisis like the one still being experienced in The States. Secondly, with a resource based economy there is still a demand for what we have to sell. As much as I personally hate the whole idea of the Tar Sands, we are shipping oil at an inflated price and, for the first time ever, we shipped more softwood lumber to China than we did to the United States. By the way, one of the reasons the TSX bucked the world wide stock market trend was because of the large number of resource stocks - especially gold and other mining stocks - that are traded on that exchange.

So back to real estate. Interest rates are a key driver of the real estate market and the U.S. Federal Reserve just announced that they will keep rates low well into 2013. That means rates will stay low in Canada and that means more first time buyers will enter the market. I know I have predicting rate increases of some time now, but I didn't count on the madness that is the U.S. Congress, which is hell bent on destroying the Obama presidency at any cost and in the process is destroying the American economy.

That brings us to the long term outlook and that seems to be heading in the right direction. It is no coincidence that Canada is out there negotiating trade deals with Europe, South America and Asia. Everyone wants to detach themselves from the U.S. economy as much as possible and in the long term that should be very positive for everyone, as long as we keep our borders closed to the greed and avarice of Wall Street. Here's hoping.

Posted July, 31, 2011

Market Review. I was recently showing Halifax condos to clients from Alberta who were purchasing a home for their daughter who was going to spend 4 years attending Dalhousie. They were somewhat taken aback when I answered their question about the local market by saying, “the market is boring”. Of course, I went on to explain that the reason the urban Halifax/Dartmouth market was boring was because it is so steady – no huge spikes in sales activity or up and down price fluctuations like the roller coaster ride they might experience in Alberta, Ontario or B.C. In short, their investment was safe, but it would not yield a huge profit after a mere four years.

My most recent foray into the sales stats clearly demonstrates this fact. And the prize for the most boring sales statistic goes to…ta da, Halifax Peninsula condo sales. Year to date there were 165 condominiums sold in urban Halifax. And during the same period in 2010, the number of condos sold was… you guessed it, 165. I’m not kidding. What a strange coincidence. Now the average selling price did go from

$ 283,549 in 2010 to $ 294,180 this year.

Other sales statistics show the same steady as she goes nature of our HRM real estate market. Condo sales in urban Dartmouth went from 32 units in 1010 to 34 in 2011 with the average price taking a jump from $ 187,378 to $ 192,297

Sales of single family homes in these markets showed a similar pattern; the number of sales was about the same as last year and prices were up slightly. One interesting statistic is that sales were down in the first quarter of 2011, but by the end of July sales had increased enough to draw even with last year. Here are a couple of single family numbers: Urban Halifax sales were down from 146 in 2010 to 138 in 2011 and the average price rose slightly to $ 395,891. Urban Dartmouth sales rose from 102 units to 105. Wow! Its boom times in Old Dartmouth. Prices rose from $ 236,000 to $ 238,500.

On another note, if you are buying or refinancing you should call your mortgage rep. today and ask for a rate hold. No telling what the US Congress is going to do to interest rates in the near future. The latest rate highlights from Rod MacInnis, at The Mortgage Centre are as follows: secured line of credit – prime (currently 3%) plus .5%, 3 yr. fixed – 3.65%, 5 yr. fixed – 3.69% and 10 yr. fixed – 4.99%. Rod can be reached at 422-6707 for more information.

Posted April 22, 2011

House hunting? Got a rate guarantee from your lender that expires in couple of weeks?  There is some cause for concern in the most recent inflation rate numbers released recently. The year over year inflation rate for March was 3.29% compared with a rate of 2.16% in February. So what does this mean to me? Well, quite simply, mortgage rates will probably start to go up. I gave up predicting that rates would go up back in May of 2010 because every time I predicted the coming rate increases, the rates would go down, but that was back when the inflation rate was staying at or below 2%. With this drastic increase in the rate of inflation, The Bank of Canada will be under pressure to increase the prime lending rate and that will trigger a mortgage rate increase.

If you are actively house hunting – or getting ready to renew your mortgage – there are a few things you can do to protect yourself against rising mortgage rates. First, panic and buy the next house your REALTOR shows you. Just kidding. What you need to do first is make sure you have a rate guarantee from your lender and make sure the lender renews you rate commitment on a regular basis. Most lenders will give you a commitment for at least 90 days. Next make sure you shop around for the best rate. If you like the bank you are dealing with make sure they are giving you the best rate available. The best way to do that is not deal with someone in the branch because you will probably get the posted rate. Set your self up with a mortgage officer from that bank, get their best rate and then shop around to see if you can do better.

When you are ready to sign the mortgage documents seriously consider locking into a fixed rate for at least 5 years. The current 3.8% five year mortgage may look very good in 2 or 3 years.

Thinking of selling your home?  Well, depending on where you live, an uptick in mortgage rates could spur a flurry of buying activity and you may want to have your house ready for market when that happens. There is a definite shortage of homes for sale in Old Dartmouth, Southdale and on the Halifax Peninsula. While sales are still soft, in these areas it is more about a lack of listings than about a lack of buyers, so thinks seriously about selling now rather than waiting.

Posted April 6, 2011

House Hunting? Somebody wants your mortgage business. Two new rate specials just arrived. Andrew Gibson of BMO Bank of Montreal (430-7192) has a new fixed rate 5 year special rate of 3.79% and the Mortgage Centre's Rod MacInnis (422-6707) is offering a First Time Buyer Special five year fixed - with a couple of extra features - at 3.80%. That covers your mortgage. Now, call us to find a house to go with your  super mortgage. 

Posted March 23, 2011

How's the Market? - Part 2  So, we looked at urban Halifax/Dartmouth. How about the HRM in general? Here are the numbers: January 1 to March 24, 2010 - sales = 1,085. January 1 to March 24, 2011 - sales = 929. So we're down 156 sales over the same period as last year. How about price? For the same period last year the average sale price was $253,687 and in 2011 the average residential sale price was $262,990. O.K., sales are down, but the price is up. Explain that! Can't. As a matter of fact, this has been a trend for some time. Even through the worst of the recession, prices in the HRM climbed gradually. Never any big increases and never any decreases in price.

The moral of this story is simple too. If you are looking for answers to all your questions, you are not always going to get them. I'm sure there is an analyst at CMHC who could enlighten us in regard to the falling sales/rising prices situation. I will see what I can find out and get back to you.

Posted March 22, 2011

How's the Market? People usually expect to hear, "Oh, it's pretty busy right now", or "It's a sellers' market" or some other comment that indicates that the REALTOR being asked is doing fine and you should engage them for "all your real estate needs" immediately. O.K. so how is the real estate market, anyway? Answer: weird. Since January 1 there have been 145 properties sold in urban Halifax/Dartmouth. During the same period last year there were 192 sales. Next question: So, if sales are down, why have I been hearing about competing offers, homes selling in a day and properties selling for over asking? Answer: The market is weird. Well, there is a bit more to it than that. The fact is that there is very little for sale in these neighbourhoods and when something comes on that is well priced and in good condition, it generates a lot of interest and sells quite quickly. A simple case of demand outpacing supply. Yesterday, for example, there were 135 new listings on the MLS system in Nova Scotia. Of those, only 5 were located in urban Halifax/Dartmouth where, obviously we have the highest concentration of houses.

The moral of this story is simple. If you are thinking of selling your home in the urban core, think quickly, decide on a price, tidy up and get your place on the market ASAP. You will get a premium because, as a seller, you will have very little competition. In April or May we could very well see an influx of new listings and this could work against you.

Posted March 21, 2011

www.A-La-Carte-RealEstate.ca is up and running! For those who haven't heard, we launched the new web site a couple of weeks ago and the response has been very positive. Basically, it is a "For Sale By Owner Service" that allows people selling privately to put their property listing on the MLS® system without paying the traditional commission for the full service bundle normally paid to real estate brokers. In fact you can get an MLS® listing for as low as $ 349. Once you buy a package, you can then shop from the menu for any additional services you might need and pay on line. I think our real advantage over traditional FSBO services lies in the fact that a home seller can switch to Full Service any time and have their A-La-Carte fees deducted from their Full Service commissions on closing. After only a couple of weeks we have six homeowners using this service. Check out their listings on this site.

Posted February 9,2011

Don't wait for Spring. Thinking of selling your home in the Spring? It just might be a good strategy to move up your time frame if you are comfortable with the notion of selling a bit earlier. Here's why: Mortgage rates are going up (see below) and there are very few listings on the market, so you might just get a premium for your property if you list soon. The jump in mortgage rates may get some of those fence sitters a bit more motivated to look and act. If you own a home in Old Dartmouth, Southdale or the Brightwood area you should know that there is virtually nothing for sale. There are buyers looking for single family homes in the $200,000 to $275,000 range and owner occupied flats (duplexes) up to $ 350,000. If you would like more information, please feel free to get in touch. 

Posted February 9, 2011

Interest Rates Are Going Up! RBC Royal Bank is the third bank to raise some or all of their fixed rate mortgages. RBC's five year fixed rate went up .25% to 5.44%. Don't forget; that's their posted rate. There are lots of mortgage rate specials out there if you shop around, but they will be going up as well. Rod MacInnis at The Mortgage Centre tells me he has one lender who will still give you a 3.89% rate on 5 years if you act quickly. House hunting? Call your mortgage broker or Bank lending officer now and ask them to give you a rate committment. Most institutions will hold a committed rate for at least 90 days. I believe this is just the beginning of the rate increases, but I have been saying that for a couple of years. We'll keep an eye on rates and keep you posted. Rod MacInnis can be reached at 422-6707 or macinnis.r@mortgagecentre.com

 Posted January 6, 2011

Happy New Year and all the best for 2011.

Here at Innovative Real Estate we enjoyed a busy 2010 and we are anticipating a productive and exciting 2011. One of the things I enjoy about real estate is that it changes constantly and therefore manages to hold my attention year after year – 20+ years, in fact.

Over the past year we have seen over all sales go down – 22% in urban Halifax/Dartmouth and there were just over 3% fewer sales in the Greater Halifax Regional Municipality. Strangely, prices continued to rise over that period with the average price in the urban areas going from $ 267,563 in 2009 to $ 275,301 in 2010.

An interesting side note is that high end sales ($ 400,000+) went up from 240 properties in 2009 to 345 homes in 2010. Sales of million dollar plus properties doubled from 15 to 31 across Nova Scotia from 2009 to 2010.

So, where do we go from here? National statistics and commentaries from the Globe and Mail and the CBC usually have little bearing on what we can expect to see here in Atlantic Canada. We have a much steadier market with fewer fluctuations than our big city cousins in places like Toronto, Calgary and Vancouver. One thing seems clear; price increases will probably slow as interest rates inch up.

In regards to sales, it’s anybody’s guess, however, since sales slowed in 2010, it is probably a good bet that there is some pent up demand and sales should hold the line or increase marginally. Interest rates continue to be reasonable (5 year fixed, just below 4%) and that continues to encourage first time buyers to jump into the market which will continue to drive the overall real estate market.

We wish you all the very best for a prosperous and happy 2011 and don’t forget; if you have any questions or comments please feel free to call, e-mail or drop by for a coffee and a chat.

Posted November 22, 2010

Shop Local This Holiday Season! Anyone who knows me knows that I loath and detest shopping, but I accept the fact that I do have to shop on occasion. And the one place I do love to shop is the Dartmouth Farmers' Market at Alderney Landing. The first reason I shop there is because I feel I'm doing my little bit to support local businesses and family farms. Secondly, I have a better sense of who is supplying my food - about 70% of my food, anyway - because I meet the vendors every Saturday and I get to chat and ask questions of the people directly responsible for my sustenance. This goes directly to food safety. I have less and less confidence in the meats (growth hormones and antibiotics) and produce (pesticides, ecoli and other bacteria) I purchase at the supermarket. Finally, I love shopping at The Market for the social aspect. Every week I spend time chatting with people I know and because it is the weekend, I have more time for that pleasant activity.

There was a lot of news last week about the closure of the Larsen pork packing plant. That's 180 jobs that will be lost when Maple Leaf Foods, the owners of the 71 year old Berwick meat packers, closes the plant. On top of the loss of Nova Scotia's last major poultry packers this is a devastating blow to Valley farmers and other businesses in the area. So, as city dwellers, what can we do to stem the tide of unhealthy and unsustainable corporatism in our food supply? There are two things we can do: First, we can shop local by purchasing as much as possible from local suppliers. It's not difficult; just buy your meat, fish and produce at one of the local farmers' markets. People are already ordering their free range turkeys at Meadowbrook Meat Market for the holiday season and once you have enjoyed free range poultry you will never go back to that greasy, chemical filled Butterball (that's not even real butter). Secondly, contact your local MLA and demand, that instead of wasting our money on pie-in-the-sky mega projects like the Convention Centre, they spend "our time (we're paying their salaries) and our money on more sustainable endeavours like small businesses and family farms.

By the way, shopping local doesn't just mean buying food. There are local manufacturers and service suppliers around the province who are doing quality work and deserve our support. Everything from giftware to furnaces to building materials can be sourced locally if we just take the time to look around. Happy shopping!

Posted November 10, 2010

HOW LOW CAN THEY GO? That's right. Interest rates are down again. I know, I keep predicting an up turn in rates but, I'm not complaining. I'm just hoping they stay at this level until it's time for our renewal.

Andrew Gibson (BMO, Bank of Montreal) is now offering a five year fixed at 3.39% and Rod MacInnis (The Mortgage Centre) has a three year closed at 3.24% and a ten year offering at 5.19%. If you are worried about the economic future, seriously look at a ten year mortgage. Even if rates only double, you will still be ahead of the game. And rates could more than double in the next few years. The U.S. FED just started printing more money and that means that inflation may not be far behind.

Posted November 9, 2010

DARTMOUTH HERITAGE HOUSE TOUR WAS A BIG SUCCESS! If you are a regular reader of this page, you know we spent a lot of time promoting the Dartmouth Heritage Museum's Heritage House Tour. Anyone who joined the tour knows that the selection of houses was amazing. For anyone interrested in Dartmouth history or someone who just likes to visit restored heritage properties this year's tour was a real treat. If you missed the Tour you can visit the Heritage House Tour page on Facebook to see pics of some of the homes.

The annual Tour is a fundraiser for the Dartmouth Heritage Museum which is working towards converting the old City Hall building into a new home for the Museum. So the really great news is that the tour was a financial success. There was record attendance of more than 450 visitors and the Tour netted over $ 12,000, which was an increase of 20% over last year.

Posted November 1, 2010 

That is the gist of most headlines in Canada’s daily newspapers last week after The Canadian Real Estate Association (CREA) and federal Competitions Bureau agreed to some changes to the way REALTORS will do business going forward. CREA is the trade association that represents REALTORS across Canada.

The Competitions Bureau has maintained for some time that Multiple Listing Service(MLS) rules were too restrictive and were hurting consumer choice. Before the rule changes anyone listing their property on the MLS system – the largest and most comprehensive online real estate marketing tool – had to receive the full service package when they listed. Real Estate companies were required to handle the entire transaction; everything from, measuring the house, advertising, taking photos, conducting showings and open houses and most importantly, handling the negotiations when a buyer decided to make an offer.

Now, REALTORS will be able to offer a menu of services. A home seller for example could opt to have a “mere listing” which would mean that they only paid a fee to have their property listed on MLS and they would handle everything else themselves. If a real estate company chooses to offer a menu of services – often called “a la carte” or “fee for service” real estate, a home seller could choose to buy only the services the want and pay a flat fee for what they purchase rather than the more traditional percentage fee for full agency representation.

Some have referred to this as “revolutionary” or “innovative” – I like innovative – but, I think we’ll have to wait and see. What are your thoughts? Do you think this is something Innovative Real Estate should offer? Drop me a note at tparsons@innovativerealestate.ca,

give me a call at 423-5111 or drop by the office and share your thoughts.

SO WHAT'S TO WORRY ABOUT WHEN BUYING A NEW HOME? It's only the biggest investment of your life, so just sit back and go along for the ride. Just kidding. Of course people worry, it's not only our biggest investment, but it is very personal, so when it is time to buy we want to make sure that we make a good decision.

And what do people worry about? Research from the Home Buying Institute - I didn't know there was such a thing - provides the top seven concerns that are on the minds of prospective home buyers. Here they are with my comments: 1. 70% worry about paying more that fair market value. Simple. Have your realtor do a market analysis before you offer, comparing your dream home with recent sales in the area. If you are a serious worrier, you can always make your offer conditional on getting a satisfactory appraisal. 2. 37% worry about ending up with mortgage payments that are too large. That's another no brainer. Do a budget and talk to your banker. There are lots of online mortgage calculators and don't forget to add in heat, taxes and other operating costs. 3. 23% were concerned that they might end up with seriously higher monthly payments if rates go up. This is a valid concern. Since in the early years of your mortgage you are paying mostly interest, you could see your payments almost double if your mortgage rate doubles. You should seriously think about a longer term even though the rate is a bit higher. If you take a ten year term at least you know you will have the same monthly payments for the next ten years. Serious worry wort? Don't take an open mortgage with a floating rate. 4. 10% are concerned about losing their jobs after taking on a mortgage loan. We can't make life risk free. All we can do is make the risk manageable. Don't buy too much house. In other words, don't get the maximum mortgage the bank says you can afford and use some of your discretionary income to save for a job interruption. 5.10% are afraid of buying a house with major structural problems. Again, nothing is risk free, but you can get a good home inspector and make sure you find one with Errors and Omissions insurance. Do not get your handyman uncle to do the inspection. Do you really want to sue Uncle Bill if he misses the rotten sills when he goes through the house?  6. 5% worry about choosing the wrong mortgage option. We dealt with that in worries # 2, 3 and 4. And finally, number 6. 5% worry there might be a housing bubble. Be grateful you don't live in the U.S. - or Toronto or Vancouver, for that matter - and sit back and enjoy your new home.

October 13, 2010

RATES JUST WENT DOWN AGAIN! BMO's Andrew Gibson just sent me a note that his best five year closed mortgage rate just went down to 3.49% and Rod MacInnis of the Mortgage Centre sent along a new rate card as well. A couple of highlights: 3 yr. closed - 3.59% and 10 yr. closed - 5.19%. If you are the conservative type of home owner a ten year mortgage might be worth considering. Knowing what your mortgage payments will be for the next ten years may be an attractive idea for some people. Just make sure that your mortgage is portable and assumable before you commit.

Have I told you lately that we have three favourite mortgage people? All three offer competative rates and excellent and very professional service. In short, they always make us look good when we send our clients to them. By the way, we do not accept referral fees, travel points or gifts of any kind when we refer clients to any service provider. We send our clients to our preferred providers because we believe they will provide the best service, period. Here are our favs in the mortgage world:

Andrew Gibson, BMO Bank of Montreal - 421-3429,andrew.gibson@bmo.com  Shawna Snair, Scotiabank - 488-2007, shawna.snair@scotiabank.com      Rod MacInnis, Mortgage Centre, 488-3702, macinnisr@mortgagecentre.com

September 10, 2010

WHAT DOWNTURN? If you have been reading or watching the national media you probably believe that the real estate world as we know it has come crashing down. Well, not exactly. Yes, in Ontario, British Colombia and Alberta (read Toronto, Vancouver, Calgary) the real estate market has tumbled dramatically; mainly because those markets became over heated earlier in the year. Here in Atlantic Canada and, more specifically in Halifax/Dartmouth, market activity has eased somewhat, but sales are down only marginally and prices continue to rise modestly. See our August 2 post below for more details.

Where I was really going with this is all about mortgage rates. They're going down again! Yup, I was wrong again. Well they will go up eventually, but in the mean time, if you are in a position to take advantage jump on this one. A five year fixed mortgage at 3.79% from BMO's Andrew Gibson. If you are in the market, it is worth a call to have Andrew hold your rate for about 90 days. You can reach him at 430-7192. I think the bank is really doing this to drum up business in those areas in Central and Western Canada where sales activity has plummeted.

August 2, 2010

HOW'S THE MARKET!  In urban Halifax/Dartmouth the market in July is down over July of 2009. In July, 2010 there were 76 sales with an average price of $ 315,469, while July, 2009 saw  127 sales at an average price of $ 287, 359. While sales were down year over year, prices were up.

To get a better picture of the health of the real estate market it is a good idea to expand the time frame and divide the market into two distinct areas; urban Halifax (Halifax Peninsula) and urban Dartmouth (Old Dartmouth, Southdale and North Dartmouth). Here is what we found: In Halifax, year-to-date (January through July)  394 residential properties changed hands at an average  price of  $ 333,391.  For the same period in 2009 there were 449  sales with an average price of 321,098 - a substantial drop sales, but a modest 3.8% increase in price. In Dartmouth the picture was a little different. In 2010 we had 202 sales and the average price was $ 218,104 compared to 198 sales and a average price of $ 214,718 - sales down by only 4 properties and prices up only a fraction (1.55%) over last year.

If you would like more detailed information about your neighbourhood, please feel free to get in touch.

June 10, 2010

Two If By Sea – TIBS to the in crowd - has become such a success that I am surprised nobody has tried to copy their winning formula. Obviously there is a strong market in Old Dartmouth for things cool on the culinary front. We do have La Perla, which I think is the best Italian restaurant in the province and I have heard that Nectar is just as good for those seeking something more eclectic. What about a loud, very busy Brooklyn style deli? After all people are starting to call Old Dartmouth “Halifax’s Brooklyn”. Any more young, energetic and heavily tattooed entrepreneurs out there?

June 1, 2010

May Sales Down Slightly.  After a very busy April, urban Halifax/Dartmouth residential sales in May were down slightly over May of 2009.  In May of 2009 there were 116 properties sold  compared to 92 units in May of 2010. The average sale price was virtually unchanged from a year earlier at $ 302,533. Condominium sales bucked the trend and rose in May from 25 in 2009 to 35 in May of this year and the average price went from $ 236,000 to $ 264,274.

Year-to-date sales are still up - from 377 homes in 2009 to 397 properties in 2010. As mortgage rates rise, however we could see a cooling off of the market and we might even see prices go down by the end of the year. We'll keep you posted.

May 31, 2010

Strong Economic Growth Signals Coming Rate Hike!  According to Statistics Canada, Canada's Gross Domestic Product (GDP) grew at an annualized rate of 6.1% in the first quarter of this year. This good economic news comes, of course, with a down side: interest rates will start to go up. The current Bank of Canada rate is at an historic low of .25%. This could change tomorrow as the Bank has it's regular review of the key rate. Many experts are predicting a rise of the key rate to .50%. You can rest assured that mortgage rates will not be far behind.

As of May 28, Rod MacInnis' (The Mortgage Centre) was offering a best 5 year closed rate of 4.48%. I expect that will change by the end of the week. Looking for a mortgage or more information about mortgages? Give Rod a call at 422-6707.

May 15, 2010

The Lofts at Greenvale are now renting. I took a brief tour this morning with Crystal, the rental agent, and these new apartment homes are fabulous. Dexel Developments should be applauded for saving the Cobb designed Greenvale School. Had the previous owners, HRM, been more respectful of this fine heritage property and maintained the building properly, Louis Lowen and his Dexel team might have been able keep the original brick exterior. Unfortunately, the brick was so far gone it was necessary to cover the outside walls with rigid insulation and a stucco material. This did give Dexel the opportunity to leave the original brick interior walls uncovered and, combined with high ceilings and quality fixtures and design elements, the result is spectacular. Of the 36 units built only 8 remain, so if you are interested you should check it out ASAP. Their website is www.theloftsatgreenvale.com 

April 30, 2010

Wow! What was that? The April real estate market in Old Dartmouth, Southdale and Crichton Park was amazing. Compared to April of last year sales of single family homes and condominiums were up from 19 to 31 and prices were up almost 10% to an average price of $ 223,616. To put that into perspective we should consider the more modest gains of the first quarter. Sales were up from 60 in the first quarter of 2009 to 73 in 2010 and prices rose a mere 2.5%.

So what happened to make April so busy? There were two main reasons: First, word got out that mortgage rates were heading up and secondly, many people tried to beat the April 19 CMHC deadline for changes in the lending rules (see April 6 post). I think that, now that pent up demand has been somewhat satisfied, we will see a leveling off of activity that will be more in line with the first quarter numbers. Rates are still low, so the market should continue to strengthen as we climb out of the recession. Happy house hunting.

April 6, 2010

 APRIL 19, THE DAY THE MARKET DIED! Hyperbole? Perhaps, but the new CMHC rules scheduled to go into effect on that date will have a profound effect on the real eastate market. To recap from our February 16 post; CMHC will now require that anyone refinancing can only borrow 90% of their homes value (instead of 95%), to qualify for a mortgage a buyer must base their criteria on the current 5 year rate (in the past they could use an open variable rate, which is lower) and finally, CMHC will require 20% down on all income properties.

Where the rule changes are going to have a serious effect is in a situation where buyers are considering "home and income" options. In the past, for qualification purposes, a buyer who purchased a home with an apartment - flats, home with a basement apartment etc. - the buyer could add 80% of the rental income for qualification purposes. After April 19 you will only be able to add 50% of the rental income to your regular income.

The only way to beat the deadline is to apply and have your application approved by CMHC before April 19. If you have any questions, please feel free to give us a call  or send an e-mail.

April 1, 2010

NOT AN APRIL FOOLS JOKE! Natural Resources Canada has just cancelled the very popular ecoENERGY Retrofit Program. The rational; the program was too popular and therefore was costing the Federal Government too much money. This was a very bad move for a number of reasons: First, the program stimulated the economy and created jobs. Secondly, and most important, it did in fact contribute greatly towards energy conservation and finally - and I don't think the government twigged to this one - it took a bite out of the underground economy. Because participants had to provide receipts for work and materials they couldn't go the traditional route of doing cash deals and allowing their contractors to avoid income tax. So, by cancelling the program, the government is forgoing revenue.

March 29, 2010

INTEREST RATES JUST WENT UP! According to The Canadian Press, two of Canada's largest banks just increased their posted mortgage rates. The increase effects closed mid-term mortgages such as three, four and five years. For example, the largest increase is for a five year mortgage which will go from 5.25% to 5.85%. The Bank of Canada is expected to begin raising rates this summer because of the rising inflation rate which is a result of an improving economy. I don't think we will see huge increases for another year or two because the U.S economy is still a long way from a substantial recovery.

So, congratulations if you have just purchased a home or been pre-approved for a mortgage. You just got in under the wire. For those who haven't acted, don't panic. The rates quoted above are the banks' "posted rates". There are still some good special rate deals to be had from our list of preferred lenders. The rate increase doesn't take effect until tomorrow so call your mortgage officer today and get a 90 - 120 day rate hold if you are thinking of a move or re-finance in the near future.

February 25, 2010