Why Can’t We Just Refer To Cycles?

why cant we just refer to cycles?

The majorly alarmist  Canada’s Housing Bubble   an accident waiting to happen  presented in late August by David Macdonald of the Canadian Centre for Policy Alternatives [CCPA] (a left leaning  think tank )

(yes D.R., it’s only because of you that I read every word of this 24 page opinion piece). I’m glad I did (see – attached above), as, the colleague who forwarded this to me, admitted to not having  read it all yet  and being  concerned with  this kind of negative thinking . I am not as concerned with this opinion (folk from all walks of Canadian life are totally entitled to their opinion   as, happily, am I entitled to mine).

What does concern me is the use of these opinions without an understanding or rather, a questioning of the  stripe  of the author and (political) motivation of the opinion. Yes, folk, surprisingly, I am a Realtor and this concept is very easy for the reader to grasp and attribute a  motivation  to. I will make one comment here   contrary to popularly held belief, I and the majority of thoughtful members of my profession DO NOT promote a fervent conviction of the need or desire for steadily and continually rising prices. Alas, we share only the same hope of all current home owners that our  most valuable asset  not diminish in value and hopefully grows over time. There’s a bubble that I have burst!

In this article, terms used, like ‘Bubble bursting slowly’ could well be replaced with the more widely (and less emotive) ‘declining cycle’. But, when we are attempting to focus attention on a specific point of view and rally the  sky is falling  troops   this doesn’t quite cut it. Reading further into this piece reveals a (I believe genuine) desire to protect the vulnerable   seen as the  young families that purchased homes with no down payment   and  seniors who can’t wait for a decade or so for prices to recover .  I, too, admit to being surprised/disappointed by our ‘fiscally Conservative’ federal government’s decision to encourage zero down, 40 year amortization mortgages. I guess that this proves that government doesn’t always make responsible decisions, but I do subscribe to the belief that adults have the right to make their own investment decisions and am often appalled at the knee jerk blaming of officialdom when an individual’s (hopefully) considered investment decision, fails to live up to the optimistic expectation of that  independent  decision maker.  CCPA’s emphasis on the  who will be hurt most  angle is kind but a little naïve. The  young family  was not forced to overextend themselves in their acquisition and neither is the  senior who can’t wait   forced to retain the (expensive?) family home replete with the dollop of market appreciation. While I do not ascribe to the family home as only an  investment , I believe that ignoring the investment (risk) aspect inherent in such an asset is foolhardy. I totally agree with one comment of the CCPA article’s author –  ‘That doesn’t mean we have to sit idly by, waiting for markets to finish their recalibrations’. Hear, hear.

While seasonality has something to do with lesser sales volume, I believe that there continues to be a nervousness regarding purchase commitment. I am still a believer that a window exists for buyers who recognize this period as an opportunity for better  deals  than we will likely see later in the year/ early in the next. May we crown our year with a blessed  Indian  summer!

Again, visit my website to see and  hear  the new developments.  I continue my commitment to keep you… www.OnTopOfTheMarket.ca – the  go to  site for North Shore Real Estate analysis and jumping off point for FULL market listing information.

To join the group getting the e-mail version of this  update  – send a request now toalanskinner@shaw.ca and you’ll be assured receipt; phone me at (604) 988-7368 or visit www.OnTopOfTheMarket.ca

Yours,

Alan

Alan Skinner
OnTopOfTheMarket.ca
Re/Max Crest Realty
Vancouver – NorthShore
http://www.AlanSkinner.com
Local Phone:604-988-7368
Toll Free: 1-800-665-1455
Cell: 604-626-2526

September 2010 Numbers

September 2010 Numbers

At last, the August 2010 YTD figures for our North Shore. North Van detached homes sold are off by 8% from
the same period of the previous year, attached (t/hses) down 12% from ’09 and apartments down 6% from ’09. Detached average prices up 10% and inventory Aug 31st, up by 35%. Average prices up 12% (t/hses) and up 12% (apts). Inventory (t/hse) 37% higher than ‘09 and (apt) up 24% from ‘09 N/Van inventory at Aug 31st is still significantly higher than 2009 (but is continuing to drop).

In West Van, detached number of sales is up by 11% from ’09.  Average price up by 19% and inventory Aug 31st up by 35% from ’09. On the condo side   attached (t/hses) sold are up from 2009 to 54 vs. 27 units; average price up 47%. Active listings down slightly from Aug 31st (44 vs. 45).  Apartments reflect 110 sold vs. 109 during ‘09; with average price 18% higher than ’09 and active listings up 46% from Aug 31st 09.

While seasonality has something to do with lesser sales volume, I believe that there continues to be a nervousness regarding purchase commitment. I am still a believer that a window exists for buyers who recognize this period as an opportunity for better  deals  than we will likely see later in the year/ early in the next. May we crown our year with a blessed  Indian  summer!

Again, visit my website to see and  hear  the new developments.  I continue my commitment to keep you… www.OnTopOfTheMarket.ca – the  go to  site for North Shore Real Estate analysis and jumping off point for FULL market listing information.

To join the group getting the e-mail version of this  update  – send a request now toalanskinner@shaw.ca and you’ll be assured receipt; phone me at (604) 988-7368 or visit www.OnTopOfTheMarket.ca

Yours,

Alan

Alan Skinner
OnTopOfTheMarket.ca
Re/Max Crest Realty
Vancouver – NorthShore
http://www.AlanSkinner.com
Local Phone:604-988-7368
Toll Free: 1-800-665-1455
Cell: 604-626-2526

Podcasts

North Shore Real Estate Radio

This year I pledge to continue my personalized service and further reduce my business ecological “footprint”. A new initiative is the radio (podcast) library which I am creating.

All North Vancouver Real Estate “Updates”, reports and information articles, checklists etc. will be archived on my website and available for download or desktop listening 24/7. You can access the information you seek when the spirit moves and not when someone pushes yet another flyer into your mailbox. I am most excited about these developments. Input as to the topics for “programming” you feel would be of interest is strongly sought. Please e-mail This email address is being protected from spam bots, you need JavaScript enabled to view it or call me 604 988-7368

Click on the “Launch Podcast Player” Icon in the top right of this website to listen now

North Vancouver Real Estate

Podcasts

8 Costly Mistakes When Selling Your Home

8 Costy Mistakes When Selling Your Home

8 Costly Mistakes when selling your home.
Basing asking price on needs or emotion rather than market value. Often sellers base their pricing on how much they paid for or invested in their home. This can be an expensive mistake. Ifyour home is not priced competitively, buyers will reject it in favour of other larger or better homes for the same price. At the same time, the buyers who should be looking at your house will not see it because it is priced over their heads. The result is increased market time, and even when the price is eventually lowered, the buyers are wary because “nobody wants to buy a house that nobody else wants”. The result is low offers and an unwillingness to negotiate. Every seller wants to realize as much money as possible from the sale, but a listing priced too high often eventually sells for less than it might have.Failing to “Showcase” the home. A property that is not clean or well maintained is a red flag for the buyer. It is an indication that there may be hidden defects that will result in increased cost of ownership. Sellers who fail to make necessary repairs, who don’t spruce up the house inside and out, and fail to keep it clean and neat, chase away buyers as fast as Realtors can bring them. Buyers are poor judges of the cost of repairs, and always build in a large margin for error when offering on such a property. Sellers are always better off doing the work themselves ahead of time.Over-improving the home prior to selling. Sellers often unwittingly spend thousands of dollars doing the wrong upgrades to their home prior to attempting to sell in the mistaken belief that they will recoup this cost. If you are upgrading your home for your personal enjoyment – fine. But if you are thinking of selling, you should be aware that only certain upgrades are cost effective. Always consult with your Realtor BEFORE committing to upgrading your home.

Choosing the wrong Realtor or choosing for the wrong reasons. Many homeowners list with the agent who tells them the highest price. You need to choose an experienced agent with the best marketing plan to sell your home. In the real estate business, an agent with many successfully closed transactions usually costs the same as someone who is inexperienced. That experience could mean a higher price at the negotiating table, selling in less time, and with a minimum amount of hassles.

Using the “Hard Sell” during showings. Buying a home is an emotional decision. Buyers like to “try on” a house and see if it is comfortable for them. It is difficult for them to do this if you follow them around pointing out every improvement that you made. Good Realtors let the buyers discover the home on their own, pointing out only features they are sure are important to them. Many sales are lost by overselling. If buyers think they are paying for features that are not particularly important to them personally, they will reject the home in favour of a less expensive home without the features.

Failing to take the first offer seriously.Often sellers believe that the first offer received will be one of many to come. There is a tendency not to take it seriously, and to hold out for a higher price. This is especially true if the offer comes in soon after the home is placed on the market. Experienced Realtors know that more often than not the first buyer ends up being the best buyer, and many, many sellers have had to accept far less money than the initial offer later in the selling process. The home is most saleable early in the marketing period, and the amount buyers are willing to pay diminishes with the length of time a property has been on the market. Many sellers would give anything to find that prospective buyer who made the first, and ONLY, offer.

Not knowingyour rights and obligations.The contract you sign to sell your property is a complex and legally binding document. An improperly written contract can allow the purchaser to void the sale, or cost you thousands of unnecessary dollars. Have an experienced Realtor who knows the “ins and outs” fully explain the contract you are about to sign, or retain a lawyer to review it before acceptance.

Failure to effectively market the property.Good marketing opens the door that exposes the property to the marketplace. It means distinguishing your home from hundreds of others on the market. It also means selling the benefits, as well as the features. The two most obvious marketing tools (open houses and print advertising) are only moderately effective. Just 1% of homes are sold at open houses, and advertising studies show that only 3% of people purchased their home because they called on a print ad! Agents use these tools to attract future prospects, not to sell the house. The right Realtor will employ a wide variety of marketing activities, emphasizing the ones believed to work best for your home.

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