Windsor Essex Market Watch August 2012

Link to full Report

The average residential  sale price year to date is up 2.8% compared to 2011, with the number of sales year to date up 7.71%.

Sales were up 5.71% in July 2012 compared to July 2011, which is in line with the steady demand we are seeing in the Windsor-Essex market. 

We continue to see inventory fall, Listings are down 1.7% year to date.  The decline in inventory to 2,938 active residential listings for July 2012 is really the main trend which is effecting the market.  With steady demand and declining inventory, Buyers are finding it more difficult to find their dream home. We are also seeing much more instances of multiple offers for properly priced homes.

One of the key indicators in the market is the Listing Sales Ratio. The Listing Sales ratio year to date was 53% which is up from 48% year to date 1 year ago.  While still fairly balanced, a listing sales ratio of above 50% is an indication that we are now in a Sellers market, and we can continue to expect prices to rise.

With rising prices, it is essential to use up date sales comparable data  and get the advice of someone that knows the local market.  If you are thinking of buying or selling locally, choose a local realtor. Buckingham Realty is a locally owned and operated real estate brokerage, we have been proudly serving Windsor and Essex County since 1968.

INFRASTRUCTURE SPENDING: As mentioned in last months report, we feel Windsor continues to be poised for a strong recovery over the next several years.  Infrastructure spending continues to be substantial in the area.  July saw the announcement of a new HMCS Hunter site on Windsor Port Authority land on Mill street. HMCS has been located in an older out dated building on Ouellette for many years, and this move was long over due. While the $1.4 billion dollar new bridge is the largest investment by far in the area, the number of smaller $30 million to $70 million infrastructure projects will also help employment and housing demand over the next several years.

EMPLOYMENT: The current strong auto sector is helping employment in the area, which in turn helps housing demand.  However, contract negotiations between the Ontario Government and teachers in the province may be having a negative effect on demand, as  many teacher’s decision to buy or sell  may be delayed until contracts are settled.

Windsor Essex is becoming a Retirement Destination

Compliments of www.cameronpaine.com

Windsor Essex Capitalizing on their recent news confirming 855 new retiree residents have relocated to the region and invested $228 million in housing, Krista Del Gatto, President of WEARCI and Executive Officer of The Windsor-Essex County Real Estate Board announced today WEARCI will host their first RetireHere Show and Seminar in Toronto, September 28, 29.

In pre-show advertising that invites the age 50-plus consumer to 'Discover Your Nest Egg Potential,' WEARCI is targeting a select number of homeowners in the GTA owning real estate valued at $500,000 or more with household incomes of at least $175,000.

"We're planning a show that focuses exclusively on the 100 Mile Peninsula's unique lifestyle and amenities, affordable prime real estate options and the growing trend to relocate to our region," emphasized Ms. Del Gatto. "Our goal is to bring twenty partners together and showcase all nine municipalities, retirement communities, new housing developments and health care services. Information that affluent boomers, ready to cash out of the GTA, need before they'll visit our region," added Del Gatto.

Attendance at the RetireHere Show will be limited to 1,000 guests daily, in order to provide visitors identified as high-relocation prospects, access to wealth-planning seminars small business opportunities and one-on-one conversations with recent new residents who will share testimonials about the WindsorEssex lifestyle.

Partners in the show to date include the WindsorEssex Development Corporation, Tourism WindsorEssex Pelee Island, Windsor Family Credit Union, BK Cornerstone Design / Coopers Mill Retirement Community, Bob Lo Developments, the towns of Leamington and Kingsville, The Windsor-Essex County Real Estate Board and WEARCI.

Highlighting the show and adding an experiential flair to the event will be a daily wine and food pairing featuring Essex County wines and local foods.

"We've been conducting pre-show surveys through our data base of respondents in the GTA to determine interest in WindsorEssex and the show," said Ms. Del Gatto. "The response has been very positive with 90% indicating they will attend and several adding comments that this type of show is needed in their area," she added.

WEARCI will host the RetireHere Show in the 6,000 sq.ft. Commonwealth Ballroom at the Toronto Don Valley Hotel and Suites located on Eglinton near the Don Valley Parkway.

Source: WECRB

Bank of Canada Change Lending Rules in Canada June 21, 2012

Source Globe and Mail

Compliments http://www.cameronpaine.com/

The country’s biggest banks were caught off guard on Wednesday night as the Department of Finance prepared to clamp down on mortgages by reducing the maximum amortization for a government-insured mortgage to 25 years from 30.

Ottawa will also limit the amount of equity that can be borrowed against a home to 80 per cent of the property’s value, down from 85 per cent.

The moves are designed to cool the housing market and limit the record levels of personal debt Canadians have amassed in recent years. Figures from Statistics Canada show the average ratio of debt-to-disposable income climbed to 152 per cent, up from 150.6 per cent at the end of 2011. A rise in interest rates or further job losses could put some households at financial risk, endangering any economic recovery.

The Bank of Canada is expected to keep interest rates low for some time because the economy shows little sign of a strong recovery, so tightening mortgage rules is one way to ensure Canadians don’t get in over their heads during a prolonged period of ultra-low interest rates.

Reducing the maximum amortization on government-backed mortgages will eliminate the 30-year mortgage for most borrowers in Canada. The changes, which are expected to be unveiled at a news conference in Ottawa on Thursday morning, will translate into higher monthly payments, but result in the loan being paid off sooner.

Ottawa will announce two other changes, according to a source. It will no longer allow high-ratio mortgages over $1-million, and it will cap the gross debt service (which looks at a consumer’s total debt payments as a percentage of their income) at 39 per cent. While many banks tend not to allow mortgages over 40 per cent, there had been no official rule in place.

It is the fourth time in four years that Ottawa has moved to cool the housing market by tightening mortgage rules. In early 2011, Finance Minister Jim Flaherty reduced maximum insured amortizations to 30 years, and limited borrowing to 85 per cent of the property value.

CIBC economist Benjamin Tal described the changes as a “gentle push,” since the government didn’t make alterations to the minimum downpayment required on mortgages, which stands at 5 per cent.

“The fact that they didn’t change downpayments is a realization that doing so would probably be too severe given that the market is slowing down,” he said.

However, there remain concerns the changes could cause too abrupt a shift in the market. “All of these things might precipitate the housing market downturn that the government wants to avoid,” Jim Murphy, CEO of the Canadian Association of Accredited Mortgage Professionals, said in an interview.

June 2012 Market Watch Windsor Real Estate

Compliments of www.cameronpaine.com

View Complete Market Watch Here

 

Year to date MLS residential sales totaled 2,083 at the end of May for all of Windsor Essex, this sales number was up 10.97% from one year ago.  

The average sale price for the first 5 month of the year totaled $171,896 compared to $162,563 for the same period last year. This marks an increase of 5.7%.

May’s Average Residential Sale Price was up 1.08% compared to one year ago. The May average sale price for residential came in at $177,789. This is highest average price for the month of May on record.

While other areas in Canada have seen significant inflation, Windsor continues to have average home prices of less than half the national average.  With the current strong auto-sector, and the enormous amount of infrastructure spending in the area, consumer confidence in the area is returning. With prices on the rise, now more than ever is a good time to invest in the Windsor Essex area.

Listing Inventory continues to remain low with only 904 new listings in May. May’s total listing residential inventory of  3,071 Units the lowest level for the month of May since 2003.

10 of the last 12 months had lower new listing inventory compared to the year before, and May of this year was no exception.  With continued low levels of inventory, the market is seeing more multiple offer situations for properties that are priced close to market value. We predict prices will continue to rise as they have for the past 2 years.

The increase in sales combined with low levels of inventory continues to push prices up. With rising prices, it is essential to use the services of a realtor, to ensure you have the latest up-to-date data, and receive professional advise when buying or selling a home.