• In the last 7 days, there have been 316 new residential listings posted for the Niagara region. In the same time period, there were 194 solds. A listing to sold ratio of 61%. A higher ratio indicates that more listings are being absorbed (purchased) by the market (buyers). The end result is decreased supply which drives up buyers angst, multiple offer situations and prices. Obviously 7 days is too small a sample size to label as a trend.
• Looking at the same situation in the last 14 days, those numbers change to 635 new residential listings and 328 solds. A more balanced listing to sold ratio of 51% which is right around where many of our local municipalities were for 2011.
• Now looking just at St.Catharines, the last 7 days has delivered 73 new listings with 56 sales in the same period, a listing to sales ratio of 77%.
• Last 14 days for St.Catharines? 155 new listings with 101 sales. Still, an impressive 65% ratio.
• Now move that over to Niagara on the Lake and you get a different market and a completely different picture with 92 new listings in the last 2 weeks and 18 sales, a ratio of just under 20%.
• Going back 6 months for Niagara on the Lake, and that lower ratio trend carries through with 278 new listings and 73 sales in that period, a ratio of 26%. Again, not great for sellers but can potentially put the buyers in a stronger negotiating position. The big ‘x’ factor with Niagara on the Lake is it is such a diverse area with homes of all values, functions and geography.
• For Thorold, we have had 13 new listings and 6 sales in the last 7 days, what would be viewed as balanced if the trend were to continue long term. In the last 14 days, those numbers change to 19 new listings and 11 sales. Again, a small sample size. Going back 3 months, the market leans in the favour of the seller again with 68 new listings and 42 sales during that time period. But again, all markets have to be looked at through their particular lense. Student housing sales tend to be their most active in Jan to March which would certainly drive up the demand and listing to sales ratio.
Some other interesting numbers by area in St.Catharines:
• North of Lakeshore Road in St.Catharines, average sales price of detached homes for the last 6 months was $287,000. Average asking price for current listings right now (excluding listings over $600k) is $344,000.
• Port Dalhousie has been surprisingly quiet with only 6 sales in the last 6 months. Average sale price of $339,000. With 23 active listings, there is certainly a good supply available. Again, though, similar to the Niagara on the Lake concept, for a small enclave, there really is a large amount of homes, values & locations in Port so more work is required to nail down a particular trend for a particular home.
• In the meat & potatoes area of north St.Catharines (Scott St north to Lakeshore Rd between the Canal and Martindale pond), there has been steady growth in volume and values. In the last 6 months there were 92 sales with an average sales price of $228,000, just about $10,000 over the average price for the city. Currently there are 56 listings available with an average asking price of $249,000…it will be interesting to see how the sales numbers hold with this higher than normal average asking price. Higher than normal asking prices aren’t particularly abnormal as sellers have optimism, time (or perception of time) and occasionally, an anxious buyer willing to take a leap.
So, on and on we could go. This time of year, typically there are an increased number of new listings coming online so from week to week, the sales to listings ratio can move around some. Once we get into May though we will be able to really zone in on our local trends and get an idea of where the coming months are headed. If you are curious of the local trends in your neighbourhood, please feel free to call or email us anytime. We are always happy to talk numbers and real estate!

Thank-you for visiting.

THEbTEAM

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The common (and dangerous) denominator in all of those examples is the word ‘new’.

When does new become not new. Or updated become outdated. We often go through homes where the 2007 furnace is described as new. Or the 8-year-old roof is new. Six-year-old windows might be referred to as replaced or updated but they are by no means new.

What makes something updated? Are 25-year-old windows on a character home considered updated? Well, technically the original windows were updated with the 25-year-old version but what does the buyer infer as updated.

There really isn’t an easy answer to these questions. The answer to all of these really comes from the pursuit of the truth by the buyer. Strip away all the adjectives and date claims and verify for yourself.

Not sure how to check?

Having the keen eye of someone who spends the majority of their non-sleeping hours walking through homes with you will be a great start. How old is that patio door? How old is this home? How old is that central air? What about the shingles, exterior doors and kitchen. REALTORS® know how to maneuver through the ocean of information and assertions made by today’s sellers. And for the record, the vast majority of sellers mean well when age claims are made. Unfortunately, not all are aware of how important the accuracy of this information is.

If you are wading into the home buying waters, make sure you are getting accurate information. Get the truth! Feel free to call or email us anytime and we would be glad to discuss the best steps to take to get started.

Thank-you for visiting!

THEbTEAM

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When buying something in short supply, the consumer may pay more than they feel it is worth (or possibly may pay more than it is actually worth). Establishing value on something that is in short supply isn’t always easy so there is a grey area there. The perceived value that allows a consumer to pay that extra amount in this scenario is the fact that it is in short supply or hard to find.

An obvious example is when on a holiday, we will pay more for a room with a view of the ocean. The perceived value is the view and most can easily see the reason for the extra cost. We may not all be willing to pay it but the perception for its value is usually there.

In home selling, homes on the lakefront side of a street will get higher prices. Again, the buyer sees the value of paying that extra amount to have a view of the water. Or homes in certain areas with legal and well finished in-law suites may get a premium because again, they are in short supply and buyers in general can see the benefit of paying the extra amount to get what is difficult to find. Supply vs. Perceived Value.

What this article is really about however is when there is a large supply of a product and how the perceived value of a buyer applies.

If a buyer is looking for a home that is commonly found on the market, establishing reasonable value is fairly simple. Review past sales, current listings, market conditions, target audience, timing plus many other variables. These all help us arrive at a value that should be pretty close to the bullseye as far as pricing. When selling this home and pushing the envelope as far as pricing goes however, the buyer is going to need to feel they received added value if they are going to pay that extra amount.

Their perception of value needs to allow them to rationalize the extra amount.

Example: Mr. & Mrs. Buyer are purchasing a home with beautiful gardens and a pool. 2 of the bedrooms are fuscia. The washer and dryer are brand new and make all kinds of fancy beeping sounds. Arriving at a price on the home is fairly straight forward as there have been 4 other sales close by in the last few months. The price on this home however is 6% higher than the others which creates hesitation. For those keeping score, as a seller, you don’t want to create buyer hesitation.

So, in order for the Buyers to move forward, they need to feel or realize some value to allow them to move forward. In the above scenario, the seller may be wise to pre-pay the opening and closing of the pool, have the fuscia bedrooms professionally painted to a new colour (buyers choice of course!) and leave behind that washer and dryer which they really didn’t want to do.
Does this cost the seller? Yes. But if the buyer is paying a premium on something that they can get elsewhere, they need to feel they got that ocean view, or at least a glimpse. The pool work, painting and washer and dryer likely don’t add up to the premium these buyers are paying. But the seller is able to sell a touch higher than normal and the buyers are able to stomach the extra amount they paid.

Again, there is a perception of value in the buyer that allowed them to write the big(ger) cheque. And as long as people are involved on either side of the table, that value is always going to be different.

Look at your home and where it fits into the market. If you fall into the well-supplied category of home, give some thought to how you can increase the value of your home. You may not be full frontal on the ocean but there may be a way to allow the buyer to at least catch a glimpse of the water.

Have questions on your home? Call or email us anytime. We would love to hear from you.

THEbTEAM

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We watch all this work that goes in. We read the articles, watch the interviews, maybe even catch a glimpse of the game or highlights on the television or computer. With great anticipation we talk about what might happen. Are they going to carry the current spring training momentum into the real show, when the actual season begins?

The build-up and tension is palpable. We hope for the best, expect greatness, some even dreaming of the success we had back in the early 90’s. At the end of the day, no one can really predict or know what the season will bring us. We can plug in all the statistical models we want. Nothing happens or matters until the real, warm bodied players are out there hustling every day trying to win ballgames.

Only when the season starts and the fun begins will we know if all of this preparation and hard work will pay off.
Now imagine a ball club that shows up 2 days before opening day, does a few wind sprints, takes some batting practice, eats a few chili dogs and then takes a good crack at it once the actual season starts.

Which scenario wins in the end?

Now imagine getting ready to put your home up for sale and apply these 2 general approaches. Which home is going to have better success and attract the best dollar? Using an apple-to-apples comparison, looking at two similar homes in a similar location, the home that was prepared and worked on in the pre-season is the home that will win – everytime.

Put the work in and prepare. When opening day arrives, you will greatly increase your chances of selling and selling for more money. Meanwhile the home that wasn’t prepared for opening day will now try to catch up.

Imagine it is day 10 of the season. The baseball player suddenly starts doing wind sprints, hitting the gym, working on mechanics and doing the hard work necessary to compete. In the apples-to-apples scenario, they may well eventually catch up and compete but the keyword there is ‘eventually’. They will have sacrificed the all-important start to the season. In real estate, that is a dangerous and often expensive approach.

Need help getting your home through spring training and ready for opening day? Call THEbTEAM anytime.

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The clearer the road, the better chance for success. In your buyer shoes, how much would you be willing to overlook or endure in order to move forward on the purchase of a home? Now take your answer and triple it. Then double it.

In general, today’s buyer has expectations. Mostly reasonable but some unreasonable. Your job as a seller is to anticipate those expectations and make a decision how you are going to deal with them. Or if you are really even willing to deal with them.
If your home is largely wallpapered, be prepared for that issue to come up. Same goes for a 35 yr old furnace, leaky basement, broker ceramic tiled floor, fuscia dining room, crumbling asphalt driveway, 40 yr old light fixture and the list goes on and on. Obviously there are different levels of concern with each issue. Spending $100 on lighting vs. a $3,000 furnace for example.
But again, large or small, perceived or real, these obstacles are what they are. If you see them, a buyer will likely see them. And remember that part about what obstacles you would be willing to overlook, then triple and double? Well, that applies.

“It’s just wallpaper. It’s no big deal to deal with.”

“That furnace works fine. We’ve never had a problem with it.”

“If someone wants to replace that tub, they can do it.”

These sentiments are all fine provided that as a seller, you are willing to deal with them in some capacity. Spending $400 to have the harvest gold tub re-glazed. Spending a week-end removing that floral wallpaper and re-painting.

Or, the other way to clear those obstacles is to make the asking price reflect what is required.

Sound simple? Well it is and it isn’t. That is why we drone on and on about the importance of the pre-listing period.

Unsure about how these concepts apply to your home? Call or email us anytime. We’d love to hear from you!

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Now as temperatures reach 20 degrees and higher, supply is increasing meaning buyers have more options. More options and more choices usually result in longer days on market and more fierce competition between listings.
So where does that leave you, the home seller?

More competition means you have to work extra hard to separate yourself from the other homes on the market. That may mean earlier than normal gardening. Washing windows, cleaning or repairing screens. Packing up winter clothing to clean out closets. Power washing front porch and walkways. Unpacking all of the patio furniture. Yes…work.

The thing to remember though is that they are all jobs that you need to do only once to get your home ready. Set up your deck or patio and you’re done. Clean windows and you’re done. Clean out those closets and you’re done. Think of the short term pain for long term gain concept. And gain you will! The difference is measured in thousands of dollars!

To get a handle on your pre-listing process and what you should focus on, feel free to contact us at anytime and we would be glad to meet with you. You will find us to be pressure-free and highly motivated, full-time REALTORS®.

We look forward to hearing from you.

THEbTEAM

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Sami writes…

So I jumped into my car last night after the Sabres 3-2 overtime victory over Montreal (2 points out of the playoffs!!!) to hear one of the big five banks is up to their old tricks again… a historic 5-year fixed rate of 2.99% is back again in an attempt to shore up their dwindling market share. The rest of the lending industry is working with an average 3.19% which was, and in fact still is the lowest rate ever historically offered when comparing apples to apples. Every news outlet and commercial from here to Victoria had it as “breaking news” and front page fodder. As you would expect, this is creating a lot of fuss.

The question is, what is all the fuss about? The devil is in the details. The two mortgage products are simply not the same. “Deeply discounted” product is extremely restrictive, available for a very short time, eliminates the borrower’s ability to get out of the mortgage for the full 5 years, forces a 25-year amortization, drastically reduces pre-payment privileges, eliminates double up or miss a payment options, all limiting increased equity, allows refinances only with the incumbent lender and last but not least, eliminates the borrower’s bargaining power to negotiate at refinance or renewal time. This is basically the stripped down economy car of mortgage offerings with a catch… The car can only be serviced at the dealer. And when it comes time to sell, it can only be sold back to the dealer at a price they dictate. Am I saying this is all bad? Well no, I guess. If one likes to drive the most basic of cars with hands shackled to the wheel while hurtling toward a cliff with no way to avoid the inevitable plunge…then I guess it’s great.

I for one am not advising borrowers to move to this type of loan for a mere 3 tenths of 1%, regardless of lender. In my opinion, flexibility is power. The power to manage debt is far greater than the power of a low rate with heavy restrictions. Savvy borrowers work toward debt reduction actively managing their mortgages by taking advantage of the perks and flexibility offered through sound mortgage structure not restrictive discounting. The bottom line is that actively managing a mortgage with plentiful pre payment opportunities and refinances calculated with discounted rates rather than posted rates can drive the cost of borrowing way down while also increasing the borrower’s equity in the property. Not to mention most Canadian’s make changes to their mortgage every 3 to 4 years… Why restrict your options?

The bottom line is, when an already deeply discounted item is put on sale…. check the code date because it could get smelly very quickly…

————–

Keep an eye out for future posts and comments from Sami on our ever-changing mortgage market.

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The answer is there is plenty but like any other town, you have to get out and active to do it!

There are numerous festivals, parks, restaurants and recreation areas for any and all to take part in. We’ll attempt to touch on a few that we would recommend. If you’re local and have some other ideas, let us know!

One couple we have been working with recently have moved here from England with a young boy under 5 years of age. While it is important for the adults to take care of the endless to do list as part of a big move, make sure you remember that little guy strapped in the back of your car! They need activity and a place to run off some steam.

— THEbTEAM Unofficial Official Top 10 Things To Do In Niagara List —

1. Cheeky Monkeys Indoor Playland. There are 2 locations, one in St.Catharines and one in Niagara Falls, the Niagara Falls location being the larger of the two. This is great space for the adults to sit down and relax (sort of…there may or may not be associated kid noise) while your children can run around and go nuts for a while. There is food, beverages and wireless internet access as well. Check them out at www.cheekymonkeysplayland.ca

2. Happy Rolph`s Petting Zoo. Tucked away in the north east corner of St.Catharines on the lake, this little gem is a great place for kids to explore and again, run off some steam. There are numerous animals, trails, a picnic area as well as a playground. The path winds its way down to the lake front as well, a great place for a gentle stroll in the warmer months of the year. The location is 2 Northrup Crescent in St.Catharines. …oh, and check out Pumpkinville in October. This free family event includes games, bouncy castles, face painting, costumed characters, pumpkin carving and loads more. Great family fun!

3. The Port Dalhousie Carousel. Dollar for dollar (or nickel for nickel) the best value in the Niagara Region! Located in Lakeside Park in Port Dalhousie, this is a win-win for parents and kids alike! At 5 cents a ride, there is loads of fun to have and you will likely get change back from a dollar. Next to a large playground, beachfront, pier and numerous restaurants, this is a popular spot with young and old alike. The kids will love it…even the more senior in the group.

4. Cats Arts Studio. To let out some creativity and have some great fun, stop by this little slice of heaven for the budding Picasso in your family. Splatter painting, portrait painting, clay sculpting and more! Visit them at www.4cats.com/stcatharines

5. Bundt Cake Cravings. Great for the 5+ age bracket, they have various programs for the little chef in the family to create, bake and decorate their own cake. Again, something different for the kids to do in their new locale! Visit at www.BundtCakeCravings.com

6. Avondale Dairy Bar. At the end of the day, sometimes all a kid (or parent!) needs is some ice cream. Just across the canal in Niagara-on-the-Lake between St.Catharines, Niagara Falls and Thorold you will find this mecca for frozen ice cream treats! Don`t let the line ups scare you in the warmer months. They have a great system with plenty of staff to keep the line moving. Stop by www.AvondaleDairyBar.com for some more info. Or just skip the internet and go direct. Ice cream tastes better in real life!

7. Port Colborne Annual Canal Days. Port Colborne`s signature event is mid summer and a great even for all. Featuring ship cruises, Boat Parade of Lights, fireworks over the canal, car shows, concert series, kite festival and more, you`ll find something for everyone. Check out www.PortColbourne.ca for more info.

8. Winter Festival of Lights. Great for everyone, this annual spectacle in Niagara Falls is a popular local event. There are more than 120 animated displays, great for a stroll with the family (depending on how cold it is!) or a gentle drive down the Parkway. Continue on to Dufferin Island as well where you`ll find loads of light displays, all from the comfort of your warmed car! Visit www.wfol.com for more info.

9. Short Hills Provincial Park. For those looking to get active, make sure you check out Short Hills Park. Situated in the middle of the region, there is fairly easy access points all around. With loads of walking trails and forest to explore, this is an awesome local gem, perfect for some outdoor exercise and fresh air, both great for stress relief! There is also St. Johns Conservation Area which has several trails and a man made pond with numerous sitting areas. You`ll love it!

10. White Meadows Farms. On Effingham Street, near Short Hills Park (see number 9), this local farm operation has loads of activities for families to take part in. These include pancake weekends, skating rink, sugar bush adventure and frog run. Visit at www.WhiteMeadowsFarms.com

We hope you find this helpful. And if you have any other suggestions to add, please let us know! We would love to hear from you.

Thank-you for visiting.

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Sprin-ter [noun] The time of year when winter and spring join forces to become a 5^th season. Not quite cold, not quite warm. Snow one day, 6 celcius and sunny the next. Frustrated skiers and snow tire buyers everywhere.

In our local real estate market, it isn’t a spring market but it certainly isn’t a typical ‘slower’ winter market either. Many waiting to list their homes in April have begun the process of getting ready to sell earlier then planned. The traffic at open houses has been surprisingly brisk in the last month. Sure, a portion of those people are ‘just curious’ but consistently busy open houses are good indicators of the public interest in general. These are the people that have their homes up for sale or are planning on a move soon.

Basically, Sprinter has a good number of people operating outside of their plans. How dare weather move their home buying plans! Spring 2011 wasn’t much different. If you recall, we had a pleasant mix of cold and rain for what seemed like weeks on end resulting in a very stagnant, dreary market.

So, will Sprinter prove productive for our local movers and shakers? We shall see as our monthly stats roll in. A few interesting stats (MLS) we have seen though in the last few weeks are the listing to sales ratios as well as the available homes for sales in some particular neighbourhoods. Some samples ::

- St.Catharines in last 2 weeks. 113 new listings with 90 sales. An astonishing 80% listing to sales ratio.

- Niagara Falls in last 2 weeks. 83 new listings with 44 sales. A still impressive 53%.

- Niagara Region in last 2 weeks. 422 new listings with 229 sales. A very respective 54% ratio.

What does that mean? It basically shows the buying public is more than capable of absorbing a healthy amount of homes on the market.  Based on the less than stellar supply of homes in some areas combined with the eyebrow raising sales numbers in others, we appear to be in a season of change. A season with the feel of winter and hibernation some days, quickly turning to active, lets open that sun roof just halfway, spring.

With leap-February closing out and March already begun, it will be interesting to watch as we move into the warmer weather with its longer days and increased dose of Vitamin D. In the meantime, enjoy sprinter!

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Then there are the people involved. The impact of the emotions of the buyer and seller can be massive. Exceptional interpersonal skills are crucial. Taking ourselves out of the equation and putting the mindset of the buyer and seller first is paramount. Anyone can put a home up for sale. Anyone can run an ad in the paper. Anyone can hold an open house. The successful REALTOR® is able to read signals, identify opportunities and work with people through a challenging time. What are the personality types involved of the people involved. Are they complimentary? Conflicting?

Market effectively to the right buyer. Then systematically follow up with leads and work with them until offer or offers arrive. Then negotiate. Remember, everything can go perfectly until an offer arrives. Everything else at that point is irrelevant. Properly negotiating and working through the offer process is really where the professional REALTOR® shines. So to answer the question, what do we do differently? The difference between one REALTOR® to another is just that. The REALTOR® is the difference.

Make sure you interview and hire the REALTOR® that inspires the most confidence in you.

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