Great Things Never Came From Staying in Comfort Zones

Happy Long Weekend My Fellow Friends and Followers,

I just wanted to update you all on the dreaded July numbers and throw a little light into the dim picture the media has painted.  First of all, SALES were down 40.4 % from the same time last July (2016)... Sales NOT prices.  I have heard so much confusion and misinformation.  The sky is NOT falling in on real estate.  In fact, July and August have ALWAYS been the slowest time in real estate and with the added regulations that came about in April it just made it worse.... so yes the numbers are down for the 3rd consecutive month and I would guess August will be about the same..... BUT
look to September to see a nice hiccup in the  market.

I think we are just balancing out right now.   Prices are still up from the same time last July by maybe 5% but we saw huge growth in 2016 so anything now looks bad and the press has a way of spinning things to sensationalize them.  So if you are thinking on buying or selling, don't be discouraged.  Opportunity may be knocking.... I would say September after the long weekend you will see a more balanced and happy market.  Buyers will be able to have their conditions and Sellers will still make money .. maybe not at the 2016/early 2017 prices but let's face it, those prices were beyond ridiculous.  Anything that goes up that fast, was not normal.  I believe it was all due to lack of inventory.  Now we have a surplus of inventory and the Buyers seem to be waiting?  What are you waiting for?  Interest rates are still amazing, house prices are coming down to what they were a year or more ago and you have CHOICE, which you didn't have as much of before ...

This week I read this quote "Be fearful when others are greedy and greedy when others are fearful" ~ Warren Buffett AND how true is that statement.   Right now, people are running scared like the sky is falling in real estate, the bubble is popping etc and in fact, a smart person would be seeing that as an opportunity to get in the market.  No one ever looked back in history and said "Gee I wish I never bought that house"... whether it was in the peak in the market or the bust.... because real estate is not only an investment but it is YOUR HOME.   My goodness, no one is losing money if they bought in 2016 .. because chances are they aren't selling it... for a while and when they do, they will be just fine.  It is more the speculators who come in and buy homes and flip them and want to profit from it... not people like you and I who buy real estate for our home, our children's home and future retirement.

So please stop letting people scare you about real estate.  Yes it is slow, always is SLOW.  Yes, prices are down considerably from February and March and April of 2017 and I am glad they are.  The prices were going up too fast and buyers weren't given the opportunity to even have a second look or a proper inspection.   So YAY to a real estate slow down but I can guarantee you that the market will be healthy and strong in September ... once the dog days of summer have passed... not to mention the rain - the weather this summer has been awful and people aren't out looking at home in the rain.  They just aren't.

So if you are looking to buy, keep looking... you're timing is awesome and if you are thinking of selling, I would wait until after the long weekend in September and then reach out and let's talk about what we need to do to sell your home.  I still recommend people sell before they buy in this market and have always preferred people do that but the past 3 years that hasn't been the case... because you couldn't buy anything without firm offers in competition.  Those days are gone hopefully for a while.

Now let's breathe a little easier that the real estate mania has finally settled down and we buy and sell with more realistic and beneficial goals than before.  I am attaching the Durham Region stats for July and you will see the numbers are still good.  The days on market are more but the sale prices are still good... in comparison to 10 years ago, they are great !  So people need to stop being so negative and look at this as a great time to buy in real estate.

Have a great long weekend everyone... and hopefully we get some nice weather.   If you have any questions about the market, your home or any listings, please don't hesitate to reach out.

Please remember if you are buying and selling in the SAME MARKET ~ the conditions won't effect you.  It is when you are buying in one market and selling in another that you may get caught, this generally happens with long closings but if you buy and sell within 90 days, you are going to be find.  What you save on the buy will be the difference you may "think" you have lost on the sell.

In 10 years from now, we look back on these prices and laugh and say, "Man I wish I bought more real estate"... just like we have all been saying the past year and half I am sure !!!  I think we all know the housing plan put in place, spooked a few buyers and the interest rate hike didn't help but the deals are out there and ones that are shopping now, are going to look back and say, "I am so glad I did"... between now and the end of 2017, you will see some great opportunity.  Be ready for them.

Cheers to that !
Michelle Makos
Direct Line - 416-300-3004
Broker/Owner
Royal Heritage Realty Ltd.

TIMES ARE A CHANGING !!!

And just like that ~ we have a Buyers Market !!!

As you can see, the prices have fallen from April to June considerably.  Anyone waiting to buy a home, your wait time is over.  I would recommend locking in the interest rates now as next week we will see BoC increase Prime which will effect the mortgage rates.

If you have been waiting to get into the market, NOW is the time.  With the market being saturated with listings, you can negotiate the price like you have not seen for a few years.

If you are interested in being sent new listings, simply email/text or call and I would be happy to set that up for you !!!

Take advantage of this market change ... these don't happen often but when they do it is opportunity knocking !!  Investment property, first home... Let's go shopping !!

MARKET UPDATE - MID JUNE 2017 - WHERE DID ALL THE BUYERS GO?

I just wanted to give you a quick update.  The market is saturated with listings. 1:10 ratio.   So currently in Pickering, we are sitting with 232 Freehold Active Listings and in the past 7 days, 28 have sold.  What does that tell you?  Buyers choice !!!  They can negotiate and they have so much choice they can be picky !!!   This is where a good negotiator working on your side can save you thousands of dollars.  The same scenario  is happening in Ajax with 323 active listings and only 20 SOLD... and Whitby has a whooping 370 Active Listings and only 39 have SOLD.

Many of these people on the market right now have bought FIRM in March and beginning of April and are starting to panic.  They NEED to sell in order to close on the purchase they made.  Thank God I don't have any clients in this situation.  I had a feeling this was going to happen and now it has.  It is a desperate situation for many people out there... and it is unfortunate.  

BUT if they do not sell, they will not CLOSE on their purchase and in turn that 
will result in lawsuits galore.   The Sellers will sue the Buyers for not closing but it isn't just for the deposit, it will be for damages.   Damages can include penalties and the difference in the sale price if they have to resell the property and it sells for considerably less.  Unfortunately this is starting to happen now with June closing and many July closings where the homes are still on the market and not sold.

If you are thinking on buying an investment property or a first time buyer, this is the optimal time to find a good deal.  If you are looking to move and sell and buy, I highly recommend you sell first as it may not sell at all... and if you were looking to just list to "cash in", although the prices are still high, the days of multiple offers and no conditions (financing or inspections) are gone... That ship has sailed in Durham Region for now.  Let's see what the new stats say for Mid June when they are released.

And on a brighter side, I want to wish all the Dads out there, a Very Happy Father's Day and if you aren't a Dad, have a great day and enjoy the weekend. Take care and I will keep you posted.  Remember, if you want to know a sold or have a question, reach out and if you know anyone looking to buy or sell, do your research.  Use a Professional.     Have a great evening !!!

And Just Like That !!

I just thought I would update everyone on what I see going on... especially in Durham Region.   It would appear that everyone who wanted to sell their home, waited until after Easter weekend and it seems that the we are now saturated with listings.

By looking at the listings and the sold listings it would appear the ratio is about 10:1... meaning for every 10 homes listed, ONE  home sells within a week.  Is this bad?  Not necessarily.  This just has not been the norm for so long that people are panicking.

Let's not panic.   The Buyers now have great opportunity to purchase homes without the bidding wars and without paying crazy over asking prices.  They may even be able to get a home inspection.  Those days were unheard of a few months ago.. hell, even a few weeks ago.

But it has definitely shifted and Realtors need to face the reality that the Sellers are no longer in the driving seat.....The BUYERS are... but many of the buyers were frustrated and didn't want to play anymore and have retreated.  It is time to revive those buyers because opportunity is knocking right now.  There are some sellers who are just hoping to cash in while the prices were at an all time high, and it is pretty safe to say, I think they may be a few weeks to late.  But there are also sellers out there who have bought in March and early April and MUST sell their home in order to close on the purchase.  This is where things get tricky.

Do they have options?   There are always options.   If you are in that position, you need to stay in close contact with your Realtor and get sound advice.  It isn't as easy as saying "keep my deposit".   If you think that, you are mistaken.   If you bought firm, you signed a legal contract.   If you are nearing your closing date, you need to discuss your options.... extend your closing to give you more time, if possible.   See if the Seller you bought from will take back a mortgage for you, if not, call on family to help you come up with funds to close the deal or speak to a mortgage broker about private funds.  But DO SOMETHING... don't wait until the 9th hour... nothing can be done a day before closing.  Deal with it sooner rather than later.

I was one of those people that bought in 1989 and my back up property didn't sell and what a nerve wrecking time it was.  I speak from experience.  Work with a Realtor that knows what they are doing.  I didn't and it took me years to recover from poor representation.   Have a plan of action.. what if... ask questions.

People that think they just lose their deposit are dreaming... that rarely is all they lose.   So be informed.   But if you are a buyer out there, the market is your playground right now.  With the market full of listings, you are able to shop til you drop.   What are you waiting for?   There are deals out there to be had.   You just need to find them.  I think this summer is going to be a great time to capitalize on some great deals.

Just know - the market is quiet.  You may have noticed all the "FOR SALE" signs out there and the SOLD riders are not going up like they used to.  This is becoming more balanced.  Agents can now really negotiate on your behalf.  If you have older children living at home, this may be the time for them to grab something.  There are homes out there selling for UNDER asking now.

Homes are being listed at the price they are expected to get and not silly under value prices and encouraging bidding wars.  Those days are slowly disappearing. This is good news for buyers.

On top of all the uncertainty, we are also seeing some Buyer Remorse out there.   Buyers who haven't closed yet on their deals and now seeing all the choice out there are feeling they overpaid. This is always going to happen if you are caught when the market is shifting.   Timing is everything and no one has a crystal ball.   All I can say to that is, I am sure in 10 years from now, you won't regret your purchase because real estate is one thing, if you buy it and hold it long enough, you will NEVER lose.   So hold on to your hats and get ready for a wild ride.

If you are looking to purchase a home or sell a home, work with someone you trust and is working in your best interest.   This too shall pass but for now, it is definitely been a fast turnaround.  Scary for some and opportunity for others.

Keeping it real in real estate !
Your friend
Michelle Makos
Broker/Manager - Royal Heritage Realty Ltd.,
Direct:  416-300-3004

1239 CANBOROUGH CRES., PICKERING - SOLD OVER ASKING

Check out this fabulous new listing in family friendly Glendale.  5 Level Sidesplit with a spectacular kitchen, open concept, 3+1 bedrooms, finished basement, lush landscaping and private backyard.  This home is close to schools, transit and shopping.  Nothing to do but move right in.



Stainless Steel Appliances, Front Loading Washer & Dryer,  Two Walk Outs

to tiered Decks and so much much more.   Hitting the market Tuesday for $749,900... call for a private showing.

View from the Deck

Showings are by appointment only. No pets.  Shows pride of ownership throughout.   Truly a pleasure to show.
Located on a pie shaped lot on a great crescent in Pickering.  Your backyard oasis awaits.

1239 Canborough Crescent.... Welcome Home 

APRIL 2017 - AVERAGE SELLING PRICE IN DURHAM REGION

Pickering Detached Homes hit over $1M  - check out the latest selling prices.   More listings coming out daily, market is more balanced, Buyers now is the time to get out there.. the market in May seems to be shifting.  Less multiples.  Is now the time to buy?  Oshawa was actually ranked 2nd in Money Sense magazine as one of the best places to buy real estate !  Contact me if you have any questions about the real estate market, I would love to hear from you.

Why I Am Not Celebrating

Good morning real estate friends, I am going to keep this short.. and I am sure many of you have gone through this or similar in this recent market but I listed a mediocre townhouse in Ajax on Thursday... did all my marketing and professional photos to get this house the most exposure in a short period of time... client has relocated to U.S. so property was vacant.

 Offers were last night and I received 14 of them.. which was not really a surprise. I expected quite a few based on the showings. The home was by no means priced TOO LOW for the market. It was priced based on last sale and improvements that were made to the other unit as opposed to ours. The other property sold for 615K... so I advised my seller we should list at 579K based on the work that was done to the other home compared to ours. They agreed and said, if they saw a "6", they would be thrilled... well my friends, they saw a "7".

Now my job is done but why driving home did I just keep shaking my head. This cannot continue in my mind. I am not being negative. I am trying to wrap my head around a townhouse being over 7 when 2 weeks ago a nicer unit sold for 615. I feel bad for all the agents that I had to call. They all said, they cannot believe what is going on and I agree.

Agents are out working their butts off and the public thinks they are all getting rich .. and if the truth be told, many agents are writing 10 offers or more before 1 goes through and spending countless weekends showing them and sitting in their car... and if they don't win, they don't get paid... so please please please, stop making out like agents are benefiting from this craziness. I can almost guarantee if you took a poll 90% of agents would like to see a more balanced market. Not this.

So why is it that 132k over asking doesn't have me doing a happy dance? Because it isn't about the money right now. It is actually about what is going to happen to this market because surely it cannot continue like this. And tell me what happens when all these expensive homes have mortgage renewals in a few years and the interest rates are higher, can they afford the payments? Will the values have decreased and now the homes aren't worth what they have invested in them?

This is just a dangerous ride we are on right now... I liked it better when we could negotiate, speak about our buyers to the sellers, build relationships with agents and not tear them down at all costs, all that has gone to the wayside. It is all about winning at any cost. It needs to end or at least slow this down and let's get back to what we do .. which is buy and sell real estate.

Congratulations to my Seller... I am so happy it worked out for you and

congratulations to the new Buyer and their agent and to the other agents and buyers that I had to make "THAT CALL" to, better luck on the next one... and now what will the next one list for??? Mind boggling. Ok that's my coffee rant for this morning. Thanks for listening and have an awesome week everyone. Cheers, Michelle xo

 "Keeping the REAL in real estate"
Direct Line:  416-300-3004
(Posted from my LinkedIn Post of 03/07/17)

February Home Sales - Just Released for 2017

February 2017 Market Watch - JUST RELEASED from Michelle Makos

As you can see another steady increase in sales... on average we are seeing an increase of 27.7% from 2016 to 2017.... A true sellers market !   

The History of the Toronto Real Estate Market

I have had so many people ask me "What do you think is going to happen to the market?"   I do not have a crystal ball, nor do I predict the future.  I can only comment on my own personal experiences and in 1989 we saw the real estate market basically tank... and during that time I was heavily invested in the market and also pregnant with my first child.   So that will age me.. ha ha :)

To make a long story short, the last home I bought in 1989 which was the peak of the market, I sold in 2008 for the exact same price that I paid in 1989... so all I am saying is, if you are going to buy at the peak of the market, you must be able to afford to hold it until it rallies back. (AND it will rally back).. it always does.

I am not trying to scare anyone or say the same thing is going to happen because back then, interest rates was upwards of 16.0 percent... which is crazy compared to today's low interest rates... but when I looked at these charts it was chilling to seem how it matched my real estate lesson !  So you can say I am crazy or I don't know what I am talking about, but it is coming... I just listed a end unit townhouse and on the first day had 12 showings and 2 called for pre-emptive offers.

To read the complete article from where this chart was obtained click here.

So the answer to the question from me is "time will tell" but everything I read tell me we are in for a correction.   When I don't know... because the next chart makes it look like we have a way to go when it comes to percent change of prices but then again, the prices were half of what they are today.

Just some real estate history for my friends... off to work... have a great weekend everyone !  

Your friend in real estate,

Michelle Makos

P.S.  I always appreciate your referrals.

43 MIchaelman Rd., Ajax - Just Listed !

Are you looking to get into the market?  This home is the ONE !!  Wonderful freehold end unit townhome on a corner lot with fenced in yard and professionally finished basement.  Wrap around Porch.  Huge Master w/ 4 Pc Ensuite and Open Concept Main Floor... All this for $579,900.00  

If you would like to see the VIRTUAL TOUR - CLICK HERE

Offers being accepted Monday, March 6th by 7 pm... Don't miss your Dream Home.