Winnipeg's Real Estate Blog

New Listing COMING SOON! Gorgeous Bungalow in Lorette

Hello everyone: Here is a little advance notice... in about 2 weeks, we will be listing a 1300 sq ft bungalow in the hamlet of Lorette. Extensively upgraded, with newer furnace, windows, roof, siding, 4-season sunroom, double garage and fully finished basement. All on an 80' wide lot and only a few minutes east of The Mint. Extremely low taxes (under $1600 net), and close to amenities and schools, you will find value here that you simply can not get inside of Winnipeg. Stay Tuned....the home will be featured here, as well as in the Real Estate News. Estimated arrival on market will be the end of September.

Buying, Market Update, MLS, Real Estate, real estate agent, REALTOR

MLS Statistics for August 2009 for Winnipeg's Real Estate Market.

Hello Everyone:

Here are the Sales and Listing Stats for August 2009 for the hot Winnipeg Real Estate Market, as compiled by Winnipeg REALTORS®.   

WINNIPEG - While MLS® sales in August fell short of last year’s mark by only 17 sales and 11 %

off the best sales month on record for August in 2005, this year’s August, based on prices in general

being slightly better in comparison to last year, recorded its best dollar volume result ever for this

month at $231 million. It also paves the way for the third consecutive year of $2 billion worth of

MLS® sales activity as year-to-date dollar volume now sits at $1.75 billion.

August 2009 also saw WinnipegREALTORS® record its 8th million dollar plus home sale which is

equal to the most sales ever sold in one year in this price range. It was an impressive newly built

home in Waverley West that sold for $1,290,000. With four months to go, there is a distinct

possibility another one or more luxury homes may sell before year end. There are currently 18

million dollar plus MLS® listings – 16 homes and 2 condominiums. The highest list price is a

Wellington Crescent home going for $2,800,000.

Talking about million dollar plus home sales, the Calgary Real Estate Board sold its first $10 million

home in August. It was the home of former NHL goaltender Mike Vernon.

Also noteworthy, is year-to-date sales activity in comparison to the same period last year is

improving and coming within a few percentage points now of WinnipegREALTORS® January

forecast. It predicted home sales would be down 5% from last year and house prices up in the low

single digits as opposed to double-digits like the past six years.

August MLS® unit sales were down 1% (1,151/1,168) while dollar volume rose 6% ($231.2

million/$218.9 million) in comparison to the same month last year. Year-to-date MLS® sales are off

8% (8,620/9,392) while dollar volume is down only 4% ($1.75 billion/$1.83 billion) in comparison to

the same period in 2008. Year-to-date active MLS® listings of 3,000 at month end are tracking very

close to last year while listings entered on the MLS® to the end of August are at 13,000, slightly

lower than 2008.

The full stats are available on my website by clicking this link:

MLS Market Stats

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Buying, listing agent, Market Update, MLS, Real Estate, real estate agent, REALTOR, sell my house, Selling, Winnipeg

August 2009 Winnipeg Real Estate Market Update

Hi everyone:

I have to appologize for the delay since my last posting.  The market in Winnipeg has been extremely active,.... especially for "Yours Truly".

But I have also been busy creating monthly "Market Updates" in video form.

During these 5 to 8 minute videos, I provide information on "number of homes sold", and "Number of Homes Available" in a variety of categories, including luxury homes, lower prices homes and condos.

For the August Update, go to August Market Update

In a nutshell:  Winnipeg's Market is hot:  Especially condos are in short supply, so if you are thinking of selling a condo, call me NOW.

Bo

Episode 15: Home Improvement Tips and Market Update

In a more level market, homeowners need to compete for buyers. To do so, your home needs to show its best side. Here are some home improvement suggestions which provide the most 'bang for your buck', and help bring top-dollar for your home.

For a look at my website, go to http://www.winnipeghomefinder.com

My monthly newsletter is at http://realtytimes.com/c/bokauffmann

Catch me on Twitter at http://twitter.com/bokauffmann

Episode 14: How Bidding Wars are Created, Market Update

Bidding Wars dont happen by accident.....they are created. Main ingredients: A nice home, a fair price and lots of marketing and advertising. This podcast explains the process.

Be sure to visit my website at www.winnipeghomefinder.comor listen to my podcast at www.rivercitypodcast.com

Home Owners and Buyers will benefit from Canada's New Budget

Hello Everyone:

Here is a break-down of how the new budget will help home-owners as well as home-buyers.  This is a reprint from my monthly newsletter, which can be found at http://www.realtytimes.com/c/bokauffmann

 

 "Canada's housing industry is thrilled with the government's new budget, which provides up to $7.8 billion in tax relief and funding for everything from home renovations to housing for low-income seniors. From First Nations housing to first-time buyers' incentives, there's something for almost everyone.

The Conservative government came through on its election promise to help first-time buyers with closing costs such as legal fees and land transfer taxes. A tax credit worth up to $750 will be made available for first-time buyers, as well as existing homeowners who buy a more accessible or functional home and qualify for a Disability Tax Credit.

The government has also increased the amount that first-time buyers can withdraw from their Registered Retirement Savings Plan to buy a home, from $20,000 to $25,000. The popular Home Buyers' Plan was introduced in 1992 but the amount that could be withdrawn tax-free had not changed since then. The Canadian Real Estate Association (CREA) says in a news release that the plan "has not had the same impact and relevance it did 16 years ago, when the original $20,000 limit represented 13.3 per cent of the average home price, versus about 6.5 per cent in 2008."

Now two first-time buyers purchasing a home together, such as a married or common-law couple, will be able to withdraw up to $50,000 from their RRSPs to purchase a home.

To stimulate the residential construction industry, there's a new 15 per cent income tax credit for home renovation work performed between January 27, 2008 and February 1, 2010. The credit applies to expenditures exceeding $1,000 but not more than $10,000, and provides up to $1,350 in tax savings.

This credit is "family based" – a family is considered to be an individual and their spouse or common-law partner, who can share the credit.

Routine repairs or maintenance such as lawn fertilization, cleaning and snow removal are not eligible for the program. But the credit can be used for such things as renovating a kitchen or bathroom, finishing a basement or building a deck, and it can be used for houses, cottages or condominiums.

The budget provides this example of how the credit could work: "Sally and Ed … decide to replace their windows and improve the insulation in their home in 2009, incurring $10,000 in expenditures. After taking account of the $1,000 minimum threshold, a 15 per cent credit will be available on $9,000 in eligible expenditures, providing tax relief of $1,350." The government expects this program will cost $500 million in 2008-09 and $2.5 billion in 2009-10.

"The use of tax credits will make the program of interest to many Canadians who own their home," says CREA president Cal Lindberg. "But the success will be tied in part to the availability of savings or credit, since the expense has to be paid before the tax credit is issued."

The budget also builds on the existing ecoENERGY Retrofit program, which provides property owners grants of up to $5,000 to offset the cost of making energy-efficiency improvements, such as upgrading insulation or installing a new furnace. Homeowners will be able to take advantage of both this program and the new Home Renovation Tax Credit for eligible work.

Social housing is getting a huge boost in the budget. A one-time investment of $1 billion over two years has been pledged for renovations and energy retrofits for up to 20,000 social housing units, but it must be on a 50-50 cost-shared basis with the provinces.

The Conservatives have promised $400 million over two years for housing for low-income seniors, and $75 million over two years for the construction of housing for those with disabilities – also to be cost-shared with the provinces. Another $400 has been pledged to support on-reserve First Nations social housing projects, and there is also money for social housing in The Yukon, the Northwest Territories and Nunavut.

The government is providing up to $2 billion over two years in low-cost loans to municipalities to invest in infrastructure projects such as sewers and waterlines. This money can be used to fund their contribution to cost-shared federal infrastructure programs.

Michael Atkinson, president of the Canadian Construction Association, says, "Our industry is pleased the government recognized that the best and quickest way to get Canadians back to work is through investments in infrastructure – every billion dollars invested means more than 11,500 jobs."

The Chartered Accountants of Canada gave the government a "B-plus" rating on the budget, and were particularly pleased with the Home Renovation Tax Credit and other tax cuts that were announced. But institute president Kevin Dancey also offered a note of caution that the incentives can't last forever.

Written by Jim Adair

Free Home Buyers Seminar

Interested in buying a house or condo?  Then this seminar is for you!

 

Date:  Wednesday evening, Feb. 11th, 2009 at 7:00 pm  (registration at 6;45 pm).

Location:  The Winnipeg Winter Club,  200 River Ave.

 

This informative seminar will feature 3 presentations by a Realtor, a Mortgage Broker and a Lawyer.  Topics will include:

• Why now is a great time to buy
• First Time Buyers
• Mortgage Preapproval, Options and Offers
• Legal aspects of home ownership
• Costs involved in purchasing a home
• plus answers to your questions

 

Registration is FREE and easy.  Simply click on

www.winnipeghomefinder.com/buyerseminar.html

 

and fill out the registration form at the bottom of that page.

 

See you all there...

New Monthly E-Newsletter available FREE

Hello Faithful Readers:

 

I wish to announce something new for 2009.  A monthly newsletter, titled "Real Estate Update" is available to anyone who wants to read it.........no charge, no strings,...no kidding!

You can see the current version by clicking the link below, and of course there is a way to 'sign up' to have any new issues delivered to your inbox directly, as soon as they are released, which will be the 15th of each month.

 

"Wait a minute" you say......"I sign up and you'll sell my e-mail info to other companies".  Absolutely Not:  In fact, I'm paying extra to make sure that:

• your e-mail address is protected and never sold or given out to 3rd parties
• you WILL NOT be receiving spam or unsolicited ads thru me
• plus: signing up is totally optional.  If you prefer you can simply click on this link each month and see the latest version

 

Why am I doing this?   Quite simply for two reasons:

1. I LOVE what I do.  Real Estate is a passion. 
2. This is an excellent way to educate the home buyer and seller, and an educated customer makes for the best client.

 

What will you find in the newsletter?

    Each month there will be 7 or 8 articles aimed at the canadian home-buyer and seller.  In addition, I will have a monthly "Market Update Report" from the Winnipeg market.  Current interest rates will be displayed, along with a link to a Monthly Featured Listing.

 

For the current issue, go to:  www.realtytimes.com/c/bokauffmann

 

If you like it, let me know.  If you know of ways to improve it, I'm listening.....(or reading).

 

Enjoy.......and have a great and safe holiday season!

Houses selling below 'list price': What's going on?

Recent market stats are showing that more and more houses are selling below list-price.  Unless we examine this news-release a little closer, it only helps to fuel fears of impending doom and gloom.  Once explained, reality is quite a bit more positive. 

One very important thing to understand is that the "Asking Price" DOES NOT equal "Appraised Value".  Over the past few years in fact, it could be said that the asking price does not even have any hold in Reality!  Lets take a look at what I mean:

Assume we are selling an average home in St. Vital, with an APPRAISED VALUE of $210,000.  Over the past few years, during our hottest sellers-market, that home might be listed at an unrealistically low price of $184,900.  While this practice is frowned upon and discouraged by our Real Estate Board and other regulatory commission, the reasons for listing so low are several, including:

• generate multiple, clean offers
• save time (the home is sold in a week)
• save money (why spend on advertising, when its sold in a week with multiple offers)
• obtain high bids and excellent terms

That home, after receiving 6 or 7 offers, might sell for $204,000 as an example.  Now the Listing Agent can brag  "My listing sold for 10.3% above list price".

Fast-forward to todays market

In todays, more balanced market, listing agents and homeowners understand that there are now fewer buyers, and therefore the chance of getting a bidding war is greatly reduce.  So they could end up listing that home at $184,900 and only receive 1 offer for full-price.  So instead of taking that  chance, the listing price might be set at something more realistic, such as $204,900.

While not receiving multiple offers, with proper advertising and exposure, the home will sell in an average of 30 days.  Initial offer might be around the $200,000 mark, which may be countered or accepted by the owner.

Bottom line is that while this same home will now sell at List-Price or slightly below, the end-result is roughly the same price as before. 

This is why it is not very useful to draw comparisons of "Sales-to-List ratios", as some news reports do.  Since the List Price is somewhat flexible, it really has no connection to the actual "Appraised Value" of the home.

Who are the winners in this new market:

The Buyer:  Finally getting a realistic list-price is like a breath of fresh air.  I can't count the number of times I've taken buyers into that gorgeous south-end bungalow, 1100 sq ft, all refinished home with 2 detached garages and a pool on a park-like setting, listed at $144,900, only to have my buyer walk away disappointed as his offer fell $50,000 short.  (A slight exaggeration on my part here)

Who is going to suffer in this market:

Private Sellers:  Since buyers now have choices again, why deal with the home-owner direct when they can choose to work with an agent and have all the work done for them?

Agents who don't advertise:  The past four years have seen a fairly easy time to sell a home:  Just put it onto the MLS and it's pretty much sold.  Agents did not need to keep up-to-date websites, invest in print advertising and provide services such as Virtual Tours.  In this more level market, all of these marketing tools will be required once again.

So if you are a home-buyer:  work with an agent who can help you sort thru the listings, asking prices and help arrive at a realistic value for the home you want.

And if you are a home-seller: choose an agent who pulls out all the stops in advertising and marketing your home.  Our Homes are no longer "the only game in town", as we now have to compete against other listed properties and entice the right buyer.

How to Sell your Home in a slow(er) market!

What a difference a few months can make!  Back in July, Winnipeg had 500 active listings at any given day, and would see approx. 1,100 sales in a 30 day period.

Now, in November, we see around 1300 active listings, and have approx. 600 sales in a 30 days period.  These are figures for sales of homes inside the perimeter of Winnipeg.  That is a significant change.  As a home-owner, what can YOU do to make your home stand out?

Lets examine why we NEED to do anything at all:  In a "Sellers Market", as we had seen for the past 4 years, there were usually multiple buyers offering on the same house.  In order to make their offer stand out, buyers would do any number of things, such as

• write unconditional offers
• offer huge deposits and downpayments
• offer well above asking-price

Often they would do all of the above.  But that was the "Sellers Market", where buyers had to compete and stand out.

Now, enter a "Buyers Market", although we do not know how long this hiatus will last.  For now at least, it is the Home SELLER who has to compete for a limited number of buyers.  It is now the SELLER's job to make their home stand out, because buyers do have choices now.  So what can we do to make the home stand out?  Here are a couple of rock-solid tips!

1. Take lots of pictures:  MLS allows for up to 10 pictures, and buyers are suspicious of any listing which only shows 1 photo.  I recently sent 34 listings to a buyer-client, some of which had only 1 or two photos.  Since my buyer can not look at all 34 listings (a fact for which I am grateful  :-)), they chose the ones which looked the best in the pictures.  A natural progression of this tip is to do a 'virtual tour' of the home, enticing buyers even more.
2. "Stage the Home": While this has been very popular in Ontario, it is starting to catch on in Manitoba.  Since the goal is to make your home stand out, staging it with nice furniture is a great way to spark the buyers imagination as to what can be done with the space.
3. Advertise the home in a variety of places:  I've said it before:  Its no longer sufficient to plunk a sign in the ground and declare "Home 4 Sale", and count on the throngs of buyers to come knocking on your door.  I've personally been contacted by several disgruntled and disappointed Private Sellers who have learned that "Nothing is FREE",  or, as our parents always taught us "You get what you pay for".  Choose a Realtor who advertises beyond the MLS, and has his/her own website, and uses magazine and newpaper ads to the full extent possible. 
4. Make sure the home is spotless:  Fresh paint, clean carpets, working lights and spotless counters go a long way to leave a good first impression.

Despite the 'doom 'n gloom' newsreports, Winnipegs market is going strong.  No, not as crazy as it has been in the past few years, but nice homes still sell at a good pace.  Most of us actually like this market:  our buyers have the chance to go for a second look, get a home inspection, and other reasonable conditions.  No, houses are NOT selling for 25% off (unless they had been wayyy overpriced to beging with), but then, we have not enjoyed 30 to 40% increases every year either.

So if you are a home buyer, enjoy this lull: no one knows how long it will last.  And if you are the Seller, make sure your home stands out from the competition.  And make sure your Realtor does, as well....:-)