Dean Manton's Blog

Word on the Street

Dean Manton (Re/Max Real Estate Centre Inc.) — Thu, 03 Jun 2010 13:56:38 -0700

If you're receiving mixed messages regarding the economy lately well join the club. The Canadian economy is performing brilliantly right now, the best in the G8 or is it the G20? The first quarter GDP came in with an amazing and unforeseen 6.1 per cent growth. Although inflation isn't a problem yet you can bet that interest rates will rise if our economy maintains this torrid pace. On the other hand if you believe the news, the crisis involving Greece and other members of the European Union threatens to plunge us into the second half of a double-dip world recession.

It's true that Canada did weather the storm better than just about any other country during the recent economic crisis and our current economy is the leader of the pack (vroom, vroom).But the thing that scares me is that by way of various stimulus packages we spent our way out of trouble thus increasing our debt load. That's like renovating your home because you can't pay the mortgage.

On the local scene the average sale price of MLS listings has never been higher but have prices really increased 14% since last May or is it just that more expensive homes are selling right now? I expect the latter. The remainder of May's numbers indicate a downward trend in our local real estate market. In fact the market peaked in March this year and has been steadily slowing ever since. The impending implementation of the dreaded HST likely has a lot to do with the early spring market and subsequent slide and one has to question the wisdom of implementing such a harsh tax when the economic outlook is still a little shaky (Dalton?).

So sales are down, inventory is up and homes are selling slower and farther away from asking price. Is the market getting ready to tank again or will it bounce back in the fall? I guess it depends on who you're talking to. I expect the slow-down to continue through the dog days of summer and then if things have stabilized in Europe by then I think we'll see the market rally a little as the leaves begin to turn colour. I don't expect prices to go down over the long term but I don't think they'll go up much either. This stagnant market should remain until the end of 2010 and quite likely well into 2011. The moral of this storey, if you have to sell, don't drag your feet! Your strategy should be to sell before the end of June. If you're thinking of buying, take your time and wait for the right home at the right price. If you want to buy and sell, you have nothing to worry about. No matter what the market is doing, things will pretty much even out for you.

Market Update May 2010

Dean Manton (Re/Max Real Estate Centre Inc.) — Mon, 03 May 2010 14:42:06 -0700

Could Early Spring Mean Early Summer?

Those of you who are regular readers of my market update may recall that back in February we were enjoying spring-like market conditions. It was the hottest February for real estate in recent memory and local Realtors who were more than ready for the end of the recession were delighted with the early arrival of the spring market. Buyers and sellers wanting to avoid the impending HST plus a general economic recovery stimulated our local market which lead to record sales and market conditions typical of April or May.

After a very strong March where market conditions continued to improve, April's numbers look a little lackluster. This makes me wonder if summer might arrive early this year as well. The real estate market typically slows down a little during the summer and usually bounces back after the kids are back in school in September. Considering the less than spectacular April, could that summer slow down be starting now?

Although April's stats look relatively strong by themselves they pale in comparison to March's numbers. Total sales for April were down 8% from March. The average days on market for MLS listings increased by 3.5% and the number of homes for sale increased by 10%. Although April's market wasn't bad by any stretch, it clearly was slower than the previous month. Could this be a trend? You know what slower sales and increased inventory mean, lower prices. This is true whether you're selling houses, cars or shoes. In addition, the number homes that sold for full price or more were down 5.5% in April and the average sold % of list price was down ½ a percent as well.

Now don't get me wrong, the current market is still pretty strong. Homes are selling quickly and close to or over asking price but if summer does come early the market could slow down sooner than expected. By the end of May the proof will be in the pudding. If the market bounces back, we'll be in good shape well into the summer. But if the slow-down continues we could be looking at a serious summer slow-down. Stay tuned! We'll have a better idea in another month.

Double Whammy Could Slow Market in Second Half

Dean Manton (Re/Max Real Estate Centre Inc.) — Thu, 01 Apr 2010 14:21:48 -0700

Canadian banks sent a clear signal that the era of rock-bottom interest rates is over by hiking mortgage rates this week, a move that will cost Canadians more to finance home purchases and could hasten a slowdown of the red-hot housing sector.

Surging home sales and prices may cool in the second half of this year due in part to the implementation of the Harmonized Sales Tax in July. The new tax will increase costs for home buyers in Ontario for new homes over $400,000 and for related services such as real estate commissions, home inspections and lawyer's fees. The double whammy of an increase in mortgage rates plus the HST could result in potential buyers staying out of the housing market at least for the short term.

Historically Guelph's real estate market has been resilient to the ups and downs of national and even international market trends. Even throughout the global recession our local market remained relatively stable. So will the market slow down a little in the second half of this year? I think that is likely to happen. If you bought a home this spring, should you be worried that prices are going to fall in the fall? Don't worry your pretty little heads. There's too much demand for homes in Guelph for something catastrophic to happen. Remember we made it through the recession relatively unscathed. I expect that the actual affect on our local real estate market will be minimal when compared other markets across the nation.

Not surprisingly, our early spring market continued fast and furious throughout March and seems ready to take April by storm as well. Total sales were up 30% from the month before and the average MLS listing sold in a month or less, within 1% of asking price. Multiple offers continued to be a common occurrence with 28% of homes selling for full price or more. Enjoy the sunshine and the hot market. They should both last well into the summer.

South End Drives Early Spring Market

Dean Manton (Re/Max Real Estate Centre Inc.) — Wed, 03 Mar 2010 10:22:44 -0800

Imagine putting your home up for sale and after two days on the market you receive eight offers and sell well over asking price. I know that sounds too good to be true but that's exactly what many fortunate sellers in Guelph experienced in February. Following a strong fourth quarter when the Canadian economy grew by 5 per cent, the biggest rebound in nine years, Canadians are feeling more positive about the economy. A recent consumer outlook index showed growing optimism last month, with 62 per cent now saying they expect the economy to improve in the next year.

Consumer optimism was evident locally as buyers willing to out-bid each other hit the streets and bought practically everything in sight. Spring had definitely come early as 33% of MLS sales sold for full price or more. But was this a city wide phenomena or did some areas fair better than others? Actually if your property was located in the south end you had a much better chance of attracting competing offers than anywhere else in the city. In fact 70% of the homes that sold for full price or more were located south of Stone Road.

Many of these purchases were likely made by investors looking for student rental properties with close proximity to U of G but neighbourhoods like Pine Ridge, Westminster Woods and Clairfields were super hot as well. Although the remainder of the city wasn't quite as active as their neighbours in the south, those areas were strong as well and did enjoy some spill over effect where buyers intent on making a purchase in the south end were forced to consider other areas because there just weren't enough homes for sale.

With the average MLS listing selling in 28 days and for 99.1% of asking price you wouldn't think the market could get much hotter but the season is yet to change and nothing would surprise me at this point. As the snow melts and things begin to turn green look for hot spring market conditions to spread throughout the city.

Congratulations to Canada and Vancouver on a fabulous winter Olympics! My family and I watched with pride as our hosts and athletes showed the world what it means to be Canadian.

Dean Turns Green!

Dean Manton (Re/Max Real Estate Centre Inc.) — Wed, 10 Feb 2010 15:06:42 -0800

I'm proud to announce that Dean Manton, Real estate Broker with Re/max Real Estate Centre Inc. is Guelph's newest Greenbroker and a member of NAGAB! What is NAGAB? The National Association Of Green Agents and Brokers (NAGAB) is Canada's largest Non Profit association of Greerealestate^TM Real Estate representatives. The Association is committed to promoting ways and means of reducing green house gas emissions, increasing building energy efficiency, conservation, overall sustainability and environmental awareness. The association offers a Greenrealestate^TM program for real estate representatives leading to the commercial and residential Accredited Greenagent^TM and Accredited Greenbroker^TM (AGA^TM & AGB^TM) designations. Greenrealestate®; designees provide a means by which consumers are able to find real world green expertise in their real estate representatives.

What is Greenrealestate?

Greenrealestate^TM promotes the sales and marketing of real estate that:

Preserves natural resources,
Protects air and water quality,
Produces less toxic pollution and waste,
Utilize readily renewable resources,
Utilizes recycled or reclaimed materials,
Promotes Energy Conservation and Energy Efficiency,
Promotes Environmental awareness,
Reduces Green House gas Emissions
Reduces annual energy costs,
Promotes good design and quality,
Reduce construction associated waste
Minimizes the use of toxic materials to reduce the emission of poisonous indoor emissions,
Uses adaptable materials that can be reused or recycled.
Helps leave the world a better place for future generations

When considering a particular home, it's important for buyers to know the energy-efficient features that keep home operating costs down and the conservation opportunities that will improve their home comfort. Conversely, sellers want to know what energy and cost-saving features buyers will value and what energy-efficiency upgrades can improve resale marketability.

Feel free to contact Dean Manton at 519-716-4663 or mail@deanmanton.com with any Greenrealestate questions or visit the NAGAB website for more information. https://nagab.org/index.php

Guelph Gets a B !

Dean Manton (Re/Max Real Estate Centre Inc.) — Mon, 01 Feb 2010 13:31:37 -0800

Calgary, Waterloo, Ottawa, Vancouver, St. John's, and Richmond Hill, Ont., top the Conference Board of Canada ranking of the country's most attractive cities to migrants, the Globe and mail reported in January.

These cities have "what migrants are looking for when choosing where to locate," according to the Conference Board's second report on the topic. It analyzed 50 Canadian cities based on 41 indicators including health, economy, environment, society, education, innovation and housing to rank the places most attractive to skilled workers and mobile populations. "Cities that fail to attract new people will struggle to stay prosperous and vibrant," said Mario Lefebvre, director of the Centre for Municipal Studies, in the report" The six top cities all got an "A" grade in the report.

Fourteen cities landed in the second-tier, or "B" class, with Edmonton, Victoria, Markham, Vaughan, Kingston, Oakville, and Guelph in the top half of this group. Toronto, Canada's largest city, also earns a "B" grade. Twenty-one cities ranked in the "C" grade category, including Kitchener ON. The "D" class includes smaller or mid-sized cities: in Ontario, Oshawa, Brantford, Windsor, and Cambridge.

One never knows what to expect from a January real estate market. Some years the phone starts ringing on January 2^nd and doesn't slow down until July. Other years like this one, it takes a little time to get things rolling. Although we did get off to a slow start this year the second half of January rebounded with a vengeance. A week ago I made an offer on a home in the south-end for a buyer and we found ourselves competing with seven other offers. That well-priced home sold for $11,000 over asking price. The competing offer scenario turned out to be a common occurrence in the latter half of the month when 30% of homes sold on MLS went for full price or more and the average days on market decreased to a scorching 26 days. One other bit of good news is that our inventory of homes for sale grew 30% from the previous month. This means that even though homes are selling at a torrid pace, buyers do have a few more to choose from.

Expect this hot "sellers" market to last well into spring but remember that New Homes, real estate commissions & lawyers fees are HST applicable. Your transaction must close before July 1^st to avoid the HST.

Market Update

Dean Manton (Re/Max Real Estate Centre Inc.) — Mon, 04 Jan 2010 15:16:29 -0800

Two Tales of a City

One look at December's sales statistics and you can clearly see a huge change from a year ago. December 2008 had us waist deep in the global recession and while banks and automakers were being bailed-out south of the border our local real estate market was pretty much non-existent. Total sales for the month had trickled to an all-time low and while Stephane Dion enjoyed a cup of coffee as the Federal Liberal leader the average days on market for MLS listings slowed to a snail's pace and the amount of active listings for sale began to pile up. Was the market transitioning into the first buyers market that we had seen in more than a decade? It certainly looked that way.

Fast forward to December 2009 and things couldn't be more different. MLS sales are up 63% from last year, the average time on market is 35 days and an incredible 26% of MLS sales in December sold for full price or more. That's what I call a recovery! Symptomatic of this turnaround however is the fact that our inventory of active listings in Guelph is now at a record low of 177 homes as of January 1^st. More homes for us Realtors to sell would definitely make this economic recovery complete.

Although 2009 sure had its ups and downs, the year-at-a-glance statistics tell a surprisingly different story. The year-end stats for 2009 are almost a carbon copy of the numbers for 2008! Total sales, identical! Average days on market, sold % of list price, average list and sale prices virtually identical! How could this be? 2008 was a typical year for Guelph with a typically predictable strong real estate market. 2009 was a dog's breakfast! It started with a global recession and a potential buyers market. It was a little flat in the middle as the world mourned Michael Jackson's demise and then just as we were all discovering that Tiger Woods was human after all, the big finish, a spectacular recovery! Statistically speaking, 2009 turned out to be exactly like its predecessor just with a lot more drama mixed in to make things more interesting. It's almost as if we all woke up after a bad dream on New Years Day repeating "there's no place like home", only to find ourselves back where we started.

Going forward, I believe the 2010 real estate market is poised to be very active both locally and across the country. Renewed confidence will have buyers and sellers who stayed put over the last year and a half mostly because of fear, ready to make a move.

I expect the first half of the year to be especially hectic due to consumers wanting to avoid the Harmonized Sales Tax that is due to take affect in July. Fasten your seatbelts friends another wild and wonderful year of real estate awaits!

Happy New Year and have a healthy and prosperous 2010!

I bought a new townhome over the holidays!

Dean Manton (Re/Max Real Estate Centre Inc.) — Wed, 30 Dec 2009 19:20:05 -0800

I bought a new townhome over the holidays! It's really great! It's 3 storeys with an elevator. The 3rd floor has a huge sky-light and a walkout to a terrace with a hot tub. In the living room a flat screen TV pops up from behind the fireplace. The chef's kitchen includes top of the line stainless steel appliances and the dining room features a gorgeous chandelier. My daughters just love it and so do Barbie & Ken! Happy New Year and have a happy and prosperous 2010!

10 Tips to Stage Your home to Perfection

Dean Manton (Re/Max Real Estate Centre Inc.) — Wed, 16 Dec 2009 09:46:17 -0800

Are you planning to sell your home in the new year? Here are some important tips that will help you to get your home ready for sale.

Less is more - pare down to the important pieces of furniture with a few accessories.
Have one photo only of yourselves and your children.
Clear everything off the kitchen countertops. Make the kitchen feel as open as possible.
Have the windows washed to let in more light, making the home feel cleaner and well-maintained.
Put money into things that buyers will touch, such as doorknobs, cabinet handles, rugs, curtains and carpet.
Plant fresh flowers in a pot next to the front door.
Ensure that the lawn is well-maintained and trees and bushes are trimmed.
Don't use scented candles or air fresheners - you never know if someone is allergic to a particular scent or if they might find it offensive.
Do minor repairs such as leaky faucets and oiling squeaky hinges
Overall, try to appeal to the broadest range of buyers and you'll have a successful listing.

Why Your House Didn't Sell

Dean Manton (Re/Max Real Estate Centre Inc.) — Tue, 08 Dec 2009 13:56:34 -0800

The economy may be uncertain but well-priced homes in good condition are still selling. When it comes to selling your home in a challenging market, the basics still apply:

1) The home is too "lived in" and lacks visual appeal. Clean everything and lose anything personal. What's personal? Anything you wouldn't consider leaving for a new owner to enjoy.

2) The home lacks style and freshness. Would IKEA, Sears, or The Bay recognize any of your furnishings? If your grandmother likes your décor chances are it has NO current style.

3) The furnishings and layout make the property appear small. Do you like a huge, king size bed? Guess what... a single bed--even in a master bedroom--will appeal more to buyers than your masterpiece of wood and metal.

4) The kitchen and bathroom are dated and would be costly to change. Everyone (men included) look at kitchens first and bathrooms second. If those rooms don't meet their standards, forget the rest of the home.

5) The owner has a design scheme too personal to the owner. If you've made your second bedroom an office, consider reinventing it as a second bedroom. A third bedroom is good for an office but every home needs at least two (2) bedrooms, more likely three (3).

6) The house is cluttered and appears untidy, unappealing, and small. Junk takes up space. What is junk? Anything you wouldn't be proud to leave for the new owners.

7) The carpets and decorations are old and the viewer feels too much work will be required. Carpet is cheap...and even the low quality, low ounce carpeting looks better than 1970s shag!

8) The home is not dressed to appeal to the majority of buyers. Don't try to explain why your dining room is ideal as an office or bedroom. Turn it back into it's intended use...at least until the buyer signs the Purchase Agreement.

9) There are repairs that need completing, but the owner does not know reliable tradespeople to approach--or none have returned their calls. Many REALTORS(R) will suggest you don't repair certain things but, rather, negotiate repairs into your final sale price. If that's your plan, be sure you can tell a new buyer who can fix it, when they are available, and, essentially, what it will cost.

10) The economy. Of course that has an affect. Don't let anyone tell you otherwise. But remember, when you sell your home--for less than what you had hoped for--you will recoup that when you try the same tactic on the owner of the home you intend to buy next!

Private Buyers Beware!

Dean Manton (Re/Max Real Estate Centre Inc.) — Mon, 07 Dec 2009 09:54:28 -0800

In today's real estate market finding the right home can often be a time consuming process. Because of this, buyers who have lost their patience waiting for the next listing to come up in their price range may find themselves considering a privately sold home. Other buyers may feel that they are getting the inside track on a property that few people know about or have found a great deal because the seller isn't paying commission and therefore is able to sell the home under market value. Any of these reasons may be valid but in every case the buyer is exposing himself to serious risk as well.

One of the advantages of buying a MLS listed property with a realtor is that the Realtor or Realtors involved in the transaction are accountable if anything goes wrong. A Realtor's duty to both buyer and seller is to verify the information provided by a seller so that the details about a property that are provided to the buyer are accurate and factual. In a case where an error has been made, all licensed Realtors in Ontario are insured for errors and omissions. Anyway, most Realtors would rather resolve potential problems before they get to the law suit stage. A realtor's success is based on referrals from satisfied clients and repeat business. A lawsuit could really damage a Realtor's professional reputation and hurt him or her financially. Here are stories of people that I have met that bought a house privately. None of them would do it again. These stories are true but the names have been changed for privacy reasons.

Mike & Tina

Mike & Tina called me to evaluate their home. They owned a bungalow on a 10 acre lot a few minutes out of town. They were planning to sell their current home and buy a house in the city. Their twins were going to start school soon and they wanted to be closer to school, shopping, piano lessons etc.

While they were giving me a tour of their home they mentioned that it was 1750 square feet. I took note of that but as is my usual procedure, I measured it anyway. 1510 square feet is what I calculated. At first I thought that I may have made an error but the more I looked at it, the house really did look more like 1500 than 1750. Mike and I decided to measure it together and came up with 1510 square feet again.

Mike and Tina were shocked. They explained to me that they had bought the house privately after falling in love with it and had compared it with similar sized homes that were for sale at the time. Now they felt cheated. They would have to price their home based on the correct square footage and the difference was going to be approximately $12,000. Mike wanted to sue the previous owner but their lawyer explained that their chances for success were not good because they had no supporting documentation from the seller. They just had the agreement of purchase and sale which didn't mention anything about the size of the house.

To make matters worse, when we did receive a conditional offer on the house, the home inspection revealed that the oil tank was buried underground. This is no longer allowed under Ministry of the Environment guidelines and they had to have the tank removed and a new tank installed in the basement at their cost. Luckily the old tank wasn't leaking and there was no environmental damage to clean up. That could have been very costly.

Vern & Cathy

Vern & Cathy were referred to me by previous clients. They asked me to list their home for sale. They were in the midst of negotiating the purchase of a home that was being sold privately in a neighbouring community. The home was being sold by friends of theirs that went to the same church. The house was a 5 year old bungalow with a legal basement apartment. I asked them if they would like me to check the house out for them and make sure that it was priced correctly, but they said no, they knew the sellers very well and the house was in great condition.

We sold their house, they moved to the new house and were very happy with their decision until a year later when Vern accepted a job in Saskatchewan and it was time to sell the new house. The first thing that I discovered when I researched the house for the market evaluation was that the legal basement apartment wasn't legal. It would cost $20,000 to retrofit the apartment to make it legal so they had no choice to sell it "as is". This proved to make the home more difficult to sell. Because of this and other factors it soon became apparent that they had over-paid for the home by approximately $30,000. Vern & Cathy felt that they had no remedy for the situation because they were too embarrassed to approach their church friends about it.

We were able to sell the home but Vern & Cathy lost a good portion of their equity and that made a big difference in the type of home that they were able to buy in Saskatchewan.

Ivan & Svetlana

Ivan & Svetlana asked me to testify in court where they were suing the sellers of the home they had bought privately the year before. They knew that I had listed the home for sale previously but the listing had been cancelled after only a short period of time. In fact I had cancelled the listing when I felt that the sellers were being evasive with me about certain questions that I had about the property. Ivan told me that after they moved in to the house they discovered that among other things the pool had a serious leak and the pool heater was rusted beyond repair. They also discovered that the central air unit was beyond repair as well. The last time that I spoke with Ivan & Svetlana the lawsuit had not been resolved. Their costs to date were $16,000 before legal bills.

Bob & Brenda

Bob & Brenda lived in a 3 year old semi-detached home in the east end of town. While they liked their home a lot, they wished for a detached home on a nice street with a big yard for the kids to play in. When they heard that a neighbour of Bob's parents was planning to sell his house they jumped at the chance. Sure the house needed some work but it had four big bedrooms and was on a quiet street just a stone's throw from Mom & Dad. They had some savings that they could use to renovate the house as well.

Three years later they called me in to evaluate the home. After spending all of their savings and then some, it was painfully obvious that the house needed a lot more renovating than they could afford. The plan now was to sell the house and recoup enough cash for a down payment on a newer home that didn't need any work. A semi in the east end perhaps. The problem was that the house didn't look good in its present condition. There were projects throughout the house that had been started but not completed. The market evaluation promised roughly the same price that they had paid three years ago. "But what about the $80,000 that we put into the house" asked Brenda in disbelief. The truth was that it was difficult to see where the money had been spent. Bob & Brenda had paid too much for a house that turned out to be a proverbial money pit.

Pauline & Fred

Pauline and Fred had a young family and were looking to buy their first home. I was showing them starter homes in their price range but it was slow-going. They had seen everything currently on the market so we were viewing the new listings as soon as they came up for sale. I could tell that Pauline was getting anxious and Fred really wanted to get settled. I'll never forget the call I received one Monday morning. It was Fred. He wanted to thank me for all my help but they had gone to a private open house on the weekend, found the perfect house and bought it. It was a semi in a nice neighbourhood near the university. At that point all I could say was congratulations and wish him and Pauline the best. After all, not every buyer you work with ends up buying a house.

What Pauline and Fred didn't know was that their new home was on what I call Fraternity Row. The open house was during the summer so the street was very quiet but by the time moving day rolled around the first semester was in full swing. Their first indication that something was wrong was the group of guys sitting on a couch on the front lawn of their new home drinking beer. Their heads bobbing up and down rhythmically to some loud rap music that seemed to be coming from the adjoining house. When Fred got out of the moving van one of the young men said "hey, is this your house?" When Fred nodded affirmative he said "sorry dude" and they all got up and pushed the couch over the property line and sat back down to more drinking and head bobbing.

What followed has been very frustrating for Pauline and Fred. While most of the students are more or less good kids, they're still students and not aware of the concerns of the young family next door. Pauline doesn't like to let the kids play outside because of the language being used and often they drift off to sleep at night to the pounding rhythm of some distant sound system. They plan to move in a year or two when they have some equity built up.

In all of these cases a competent Realtor could have helped the buyers avoid the pain, cost and frustration that went with their decisions to buy their homes privately. Does everyone who has bought a house privately have a similar storey to tell? No of course not. But if every Realtor knows five unhappy private buyers like I do then it's more common than you might think. Is every purchase involving a Realtor problem free? Again, of course not but when a problem does arise Realtors are accountable and the mechanisms are in place to get the problem solved to the buyers satisfaction.

Take my advice, NEVER buy a home privately! When buying a home get the professional representation that only a Realtor can provide. Your Realtor will help you to determine the true market value of the property you are considering and help you to avoid any other potential problems.

What's So Great About Guelph?

Dean Manton (Re/Max Real Estate Centre Inc.) — Mon, 07 Dec 2009 09:34:39 -0800

Most Guelphites that I talk to are proud of their city and have an innate sense that it's a special place to live but the amount of accolades recently achieved by the Royal City would make even the most ardent Guelph-booster blush. Apart from being named among the top 10 places to live in Canada, Statistics Canada recently named Guelph Canada's safest city. Based on volume and severity of police-reported crime, Guelph didn't just edge out other Canadian cities, it won by a mile!

But what makes Guelph so safe? Is our police force better trained than those in other cities? Are our politicians wiser than other politicians? I think it has a lot to do with the fact that Guelph was also named Canada's most caring Canadian city by McLean's Magazine. That's right! The "Volunteer Capital of Canada" topped other Canadian cities with 69.7% of its population doing some kind of volunteering. Our residents take care of each other or simply put our city has a soul. Guelph was thrust into the spotlight again this year when St. Patrick's Ward or "The Ward" was named among the best old neighbourhoods for 2009 in This Old house Magazine. Did the soul of our city have something to do with that distinction?

The inevitable result of all this positive press will be that more people will want to live here, more homes will be built, more jobs created, property values will increase. Good news as long as we don't lose our soul.

10 Tips For Selling Success

Dean Manton (Re/Max Real Estate Centre Inc.) — Thu, 03 Dec 2009 19:26:46 -0800

Are you planning to sell your home this coming year? If you are you won't be alone. The amount of listings that come on the market is predicted to climb in 2010 and approximately 70% of these will actually sell. Even though you'll be at the mercy of some market trends, the one factor that you can take total control of is the condition your home is in. Once the for-sale sign hits the front lawn, you won't get a second chance to make a good first impression. The key to success is to transform your home from living condition to showing condition before the buyers step on the welcome mat. Many sellers hit the market with properties that are poorly prepared or not prepared at all. The result is longer selling times, loss of equity or not selling at all.

Here are ten simple steps you can take to help minimize the negatives, maximize the positives and sell your home faster and hopefully for more money.

Major Repairs & Maintenance

That roof, furnace or carpet that you were hoping to get away with not replacing, replace it! Buyer's estimates of repair and replacement costs tend to be 2-4 times higher than actual and with more houses to choose from, they'll likely move on to a home that doesn't need as much work. Plus, a corrected deficiency becomes a selling feature!

Curb Appeal

Buyers get their first impression of a property from the curb. In fact many buyers Drive by a property before deciding to contact a realtor to schedule a showing. It's extremely important that the exterior of your property looks its best. Keep the yard free of toys and clutter, cut and water lawn, trim trees & hedges, plant flowers. In the winter make sure driveway, steps and walkways are clear of snow and ice. Remove derelict vehicles and seal driveway if needed.

Minor Repairs

Cracked windows, leaky faucets, torn screens, burnt-out light bulbs and spots on carpets are a few common items that need attention. Have a friend go through your home, he or she will probably notice some things that you have overlooked. Touch-up paint in high traffic areas or repaint a room where necessary. That bathroom that you painted red on a whim would probably look better painted taupe or Cappuccino.

Clear Out

Remove the clutter from your home and create the appearance of space. You'll have to pack at some point anyway. Get rid of unwanted items. Throw them out, have a garage sale or donate them. Remove children's posters and fridge magnets. Put away valuables. Don't just stuff things into closets, buyers will be looking there too. Don't forget the garage!

Spring Cleaning

Once the clutter is gone, a thorough spring cleaning should be the next step. If you don't have the time or inclination yourself, hire a cleaning service to do the job. This is a small investment with a potentially huge return. Windows, kitchens, bathrooms, oven, steam-clean carpets, go on a dust-bunny hunt and take no prisoners.

Depersonalize

Don't get too carried away here but family photos, diplomas etc. can be distracting. The little plaque saying "Billy's Room" on a bedroom door might be hard to take down but you want the buyer to see little Sally living there. I'm sorry but your children's heights marked in a door jam will have to go as well. Wash it or paint.

Sense Appeal

Your home should appeal to all of the buyer's senses. Make sure your home is bright and airy. Open curtains and turn on lights. Energy saving light bulbs are great but consider replacing them with the really bright ones temporarily. Fresh flowers and a basket of fruit are nice touches. Eliminate noises, the best sound for a showing is silence. Eliminate foul odors. Garbage, pets, cooking and SMOKING! Don't over do it with candles and air-fresheners, open a window. New paint or carpet can give your home a "new home smell". The most important things to remove from your home for a showing are yourselves, your pets and your kids.

Pre-Inspection

Consider having a pre-inspection done on your home. This is a good way to avoid any potential surprises come offer time and allow you to address any concerns before you market your property. A recent inspection report is also a good selling feature. Hire a reputable home inspector, your realtor will be able to recommend a few. This should cost $300-$500.

Home Staging

Home staging is becoming a popular way to prepare a home for market by adding a professional touch. A home staging professional has the expertise to decorate and "stage" your home so that it will look its very best. They make specific recommendations and change the look of your home so that it will be more attractive to buyers.

Pricing

With more homes on the market this year the pricing of your home will be crucial to your success. Obtain a comparative market analysis (CMA) from your realtor. He or she will suggest a pricing strategy based on the CMA. It's a good idea to get a second or even a third opinion. This will give you a chance to compare their services as well. It can be tempting to ask more for your home than recommended but keep in mind that the closer you price your home to the market value, the more attractive the offers should be. You will also improve your chances of receiving multiple offers. Properties that are priced too high often scare away buyers and result in many days on the market and lower eventual selling prices.

I hope this list is helpful. Good luck in 2010 and don't forget to call me when you're ready to sell!

Dean Manton

Market Update

Dean Manton (Re/Max Real Estate Centre Inc.) — Tue, 01 Dec 2009 13:49:15 -0800

What a Difference a Year Makes

Thinking back on last November, Barack Obama had just been elected president and Canadians found themselves about to be unwilling participants in the global recession. Depending on who you talk to around Guelph, the recession turned out be much ado about nothing or really had some serious economic teeth. Our local real estate market seemed to feel the effects almost as soon as Stephen Harper begrudgingly admitted that not only was Canada's economy headed for recession, it had already been there for months.

Total MLS sales from last November were an astoundingly low 88. That means for the majority of Guelph's 450 Realtors it was a very dry month. The average days on market for MLS sales had increased to 47 and the listing inventory also swelled to 459 homes for sale. According to the law of supply and demand low sales and high inventory mean one thing, a buyers market. Sadly though, buyers were few and far between and what we experienced was a flat, stagnant market, no fun for anyone, especially Realtors.

November 2009, I'm happy to report that was a whole different storey and even though the market was starting its seasonal wind-down, monthly sales for November were a much stronger 156. That's almost double what they were a year ago. The average days on market decreased to 39 and 14% of MLS sales sold for full price or more. After a few months of strong sales our inventory has hit an all-time low of 275 homes for sale. That's almost half of what it was a year ago. Now according to the law of supply and demand what happens when you have strong sales and low inventory? If you said a seller's market you're right!

Now all we need is some homes to sell. Have a great holiday season and a very merry Christmas!

Canada's hot Real Estate Market Getting Hotter

Dean Manton (Re/Max Real Estate Centre Inc.) — Mon, 02 Nov 2009 14:26:42 -0800

A new report from the Canadian Real Estate Association (CREA) shows the market tighter than ever with the lack of supply of new listings conspiring to make a hot market even hotter. CREA said Thursday the average sale price of a house in Canada reached $331,602 last month, a 13.6% increase from a year ago. There just isn't enough new product coming to market to meet demand. Last month, there were 80,816 new listings across the country, compared to 97,657 a year ago. The supply problem is happening in almost every major Canadian city. The same things continue to drive the housing market. Low interest rates, rebounding consumer confidence and improving overall sense of economic security.

Our local statistics tell the same story. Sales figures are up over last year in every category except active listings. The inventory of homes for sale in Guelph is down 27% from November 2008. The law of supply and demand has the homes that are coming to market selling in 34 days on average and a stunning 27% of Guelph MLS listings sold in October went for full price or more. Contrary to popular belief, November and December are among the best months to sell your home because there usually aren't as many homes on the market to compete with. True this year only more so. I expect this trend to continue through November and the first half of December before things shut down for the holidays. What happens January 1st is anyone's guess.

BACK TO THE FUTURE!

Dean Manton (Re/Max Real Estate Centre Inc.) — Fri, 02 Oct 2009 13:48:48 -0700

Our local real estate market has been in a state of transition since June when we started to pull out of the so-called recession. But the most significant change took place during September when what we were calling a recovery turned into a full- fledged seller's market. At first glance our stats for last month paint the portrait of a typical September. Total sales are just slightly over last year, average days on market just a few days quicker and the average sold % of list price just a fraction more than September /08. But our good friends Supply and Demand have been hard at work and as a result the true market picture is starting to favour the seller.

The main reason for this quick vendor-friendly transition is that our inventory of homes-for-sale is at the historic low of 309 homes as of October 1^st. This is not a lot of homes to choose from when you think of all the different areas, styles of homes and price ranges that buyers are looking for. This is why our total sales have steadily declined since June and I have a list of buyers longer than my arm who are waiting for the right home to hit the market. Another symptom of the listing shortage is that 25% of MLS sales in Guelph sold for full price or more in September, another record. So then why were the average days on market (44) close to last year's pre-recession level and not much lower like you would expect? I'm glad you asked. 20% of MLS sales in September were of homes that had been on the market for 90 days or more, some a lot more. This means that because of the lack of selection in the market place, homes that previously weren't selling began to sell in September. These homes didn't sell because of price reductions, remember the average sold % of list price was up. They sold because those buyers wanted or needed to buy something and had not many homes to choose from.

Unless we get a large influx of homes to sell soon our real estate market is going to look more like 2005 instead of 2009. I'm talking about multiple offers, homes selling over asking price in a matter of days or even hours and of course higher prices. Buyers will think they've gone back to the future!

A last Salute to Summer

Dean Manton (Re/Max Real Estate Centre Inc.) — Mon, 21 Sep 2009 10:57:46 -0700

We are so lucking to live in a community like Guelph where no matter what part of the city you live in you are literally minutes away from the country. Yesterday was a perfect day to take advantage of our geographical good fortune. The late summer sun was high in the sky as my family and I set out on a leisurely hike. One of our favourite hiking locations is The Guelph Radial Trail. The trail runs for 28km from Guelph to Limehouse along the bed of a former electric railway. We park the car on Watson Road just north of the Eramosa River and access the trail from there. The Guelph Radial Trail runs parallel to the river up to a dam then crosses over to south. There is also a side loop trail which goes up to the top of the valley ridge that has some incredible views! The side loop trail is where we decided to walk on such a perfect Sunday.

The kids scrambled out of the car followed by Murphy the puggle. Murphy, our dog is a pug and beagle hybrid and loves nothing more than a romp through the woods, his nose leading him from smell to interesting smell. The beginning of the trail is like stepping into a long dark tunnel. The temperature immediately cools as you walk beneath the canopy of tall cedars. After a short time the trail splits left and you have the option of climbing the ridge. As you emerge from the canopy you are warmed instantly by the sun and inundated by a hundred colours and aromas from the many wild flowers that grow waist-high on both sides of the well worn path. This area is also popular with mountain bikers and we shared the trail with a few going in both directions as we ascended the north side of the Eramosa River Valley. Murphy was happy to greet the other dogs that we met along they way.

As you follow the meandering trail to the top of the limestone ridge, our next discovery was a cool pine forest. The path winds through the shady groves and the fragrant needles cover the forest floor like a carpet. There are several places where you can stop, rest and enjoy some breathtaking vistas. The fact that you're only minutes from town seems impossible! At the far end of the forest the path gently descends to the valley floor where the trail follows the north bank of the Eramosa river back towards the beginning. We didn't forget to stop at the dam on the way back where Murphy had a much needed drink. We skipped stones on the calm surface of the river as kayakers floated quietly by.

The remainder of the trail is nice and flat which is a welcome sight after all that hiking. We encountered many people of all ages on our journey, many with dogs, some without. All had a content and peaceful look that seemed to say "enjoy this gift because it may be the last warm day for a while". We gave the summer sun a final salute with some ice cream on the way home. If this last day of summer was our last warm day of the year that's okay, I plan to be back when the leaves have changed. The views will be spectacular

Guelph's Best-Kept Camping Secret

Dean Manton (Re/Max Real Estate Centre Inc.) — Tue, 15 Sep 2009 10:11:19 -0700

Can you believe the weather lately? We haven't got a drop of rain in over two weeks! It really seems like summer decided to show up in September instead of July /August. My brother Todd and I took our daughters camping on the weekend and we had an amazing time. We spent Saturday on the beach swimming, enjoying the sun and watching fish jump in the bay. The evening started out with a bbq of sumptous burgers served with cheesies and potato chips and continued with ghost stories and toasted marshmallows around the campfire. After we tucked the girls into their sleeping bags Todd and I watched the fire burn down while the girls whispered and giggled in the tent for another hour. The night was peaceful and quiet except for the midnight raid by a family of very noisey racoons. They polished off the un-eaten marshmallows and made off with a bag of hot dog buns that they removed from the cooler. Our first father/daughter campout was filled with memories that will last a lifetime and the incredible part was that the whole time we were only a 15 minute drive from home! That's right, instead of driving for 3 hours to Muskoka or some other northern destination we camped at the Guelph Lake Conservation area. If you haven't been there you really should check it out. As soon as you drive through the front gate the fact that you're minutes from home disappears and you could be anywhere! The campsite are large, flat and sunny, not dark and damp like many others. Our campsite overlooked the lake and included a beautiful dusty rose sunset. Rumor has it that the fishing is excellent at Guelph Lake as well though we didn't try our luck this time. Sunday morning we all went out for a pancake breakfast and were home before noon. I know I'll be camping at Guelph Lake next summer for sure. In fact, if the weather keeps going the way it has been, I may be back again this year!

Market Update September /09

Dean Manton (Re/Max Real Estate Centre Inc.) — Tue, 01 Sep 2009 13:26:15 -0700

Realtors Lead Economic Recovery

Statistics Canada reports that Real Estate Agents are helping to lead the country out of the recession. I say bravo! Who better than a group of hungry Realtors to loosen the purse strings of the nation. Canada's economy grew for the first time in 11 months in June, providing a glimmer of hope at the end of a period that still marked the country's third consecutive quarter of economic contraction. The Gross Domestic Product increased 0.1 per cent in June from May, led by the oil and gas industry, wholesalers and real estate agents, Statistics Canada reported Monday. Statscan's latest GDP figures reinforce the Bank of Canada's outlook. The central bank predicted last month that Canada's first recession since 1992 would end this quarter and begin a long, slow climb out of the hole created by the financial crisis.

Locally, sales increased slightly last month compared with August 2008. This is the second month in a row to post an increase over the same month in 2008. The average sale price for August jumped almost ten percent from a year previous! Before you get too excited does this mean that the house you bought last August is suddenly worth 10% more than you paid for it? Sorry not quite, what it probably does indicate is that as the economy improves, more expensive homes are starting to sell. Our inventory of active listings is still relatively low. This should increase demand and prices. I predict a active fall for Guelph real estate, much stronger than last year's pre-recession market.

Market Update July /09

Dean Manton (Re/Max Real Estate Centre Inc.) — Wed, 05 Aug 2009 12:59:42 -0700

What’s so great about Guelph? Most Guelphites that I talk to are proud of their city and have an innate sense that it’s a special place to live but the amount of accolades recently achieved by the Royal City would make even the most ardent Guelph-booster blush. Apart from being listed among the top 10 places to live in Canada, Statistics Canada recently named Guelph Canada’s safest city. Based on volume and severity of police-reported crime, Guelph didn’t just edge out other Canadian cities, it won by a landslide! But what makes Guelph so safe? Is our police force better trained than those in other cities? Are our politicians wiser than others? I think it has a lot to do with the fact that Guelph was also named Canada’s most caring city by McLean’s Magazine. That’s right! The “Volunteer Capital of Canada” topped other Canadian cities with 69.7% of its population doing some kind of volunteering. Our residents take care of each other or simply put our city has a soul. Guelph was thrust into the spotlight again this year when St. Patrick’s Ward or “The Ward” was named among the best old neighbourhoods for 2009 in This Old house Magazine. I believe that the soul of our city have something to do with that distinction as well. The inevitable result of all this positive press will be that more people will want to live here, more homes will be built, more jobs created and property values will increase. Good news and prosperity for all, as long as we don’t lose our soul. Sales are down ever-so-slightly from last July but the average days-on-market is a blistering 37. Our inventory of active listings is down to 397, the last time that number was below 400 was in February. I’m sure sales would be higher if we had more homes to sell. Look for August to remain busy until the kids go back to school, then the market usually takes a couple of weeks off. The rest of September should be active.

Market Update July /09

Dean Manton (Re/Max Real Estate Centre Inc.) — Mon, 06 Jul 2009 14:01:54 -0700

Is it over?

How do you know when a recession is over? If you're waiting for someone to announce it from the top of the highest hill you'll probably be getting the news about 6 months too late. Just like when we heard we were in a recession, we had been in one for about 6 months. Whether we're riding a death spiral into or climbing out of a recession you can bet that the official announcement will be delayed until the experts are absolutely sure.

According to a recent report from the Bank of Canada, the country's recovery from the recession will be shaped more like the steady curve of ‘a hockey stick' rather than bouncing back like a V. Regardless what shape the recovery takes the fact that people are now discussing an economic recovery rather than the recession is a good indication that the end of the market down-turn is near.

Although this short but mighty recession has claimed its share of victims, the Guelph real estate market showed relative resilience during the first quarter of 2009. Now this resilient market has staged what could be called a great 2^nd quarter come-back. Total sales last month were actually higher than the previous June. That's the first time this has happened in almost a year. The average sale price increased 1.5% from May to June this year and 18.5% of MLS sales sold for full price or more. The result of this active market is that the inventory of homes for sale is down to 463, the lowest amount since January. Once again we have more buyers than sellers in Guelph and it won't take much of that before we welcome back the perpetual seller's market that we're used to.

Now I'm not standing on a hill announcing to one and all that the recession is finally over. But if we get 2 or 3 more months of this, I will be.

Is the worst behind us?

Dean Manton (Re/Max Real Estate Centre Inc.) — Thu, 04 Jun 2009 11:33:48 -0700

Have you ever noticed that things never turn out as good or as bad as we imagine? I remember 6 months ago when the possibility of the big three auto-maker's going bankrupt was first being discussed. What a potential disaster! The media conjured images of an economic melt-down that would rival the great depression. But it didn't turn out that way. GM and Chrysler have both filed for bankruptcy within a month of each other and the sun still came up the next morning. In fact, on the day that GM filed for chapter 11, the stock markets actually went up! To paraphrase Mark Twain "news of the economy's demise has been greatly exaggerated".

"The worst is behind us now," Prime Minister Stephen Harper said in an interview with radio station CFRB in Toronto, adding there will likely be further job losses in Canada.

Signs the recession is easing include April data that showed new jobs were created for the first time in six months and sales of existing homes rose the most in more than five years. Credit markets are also improving, with the Bank of Canada's composite index of financial market conditions rising to its strongest level last month since September. Our local real estate market is hanging tough. Prices have leveled out to where they were a year ago and total sales were only 16% lower than in May 2009. Have we seen the bottom of the market? Only time will tell but I expect prices to remain fairly flat for 2009 and then start to improve next year.

Spring Has Sprung!

Dean Manton (Re/Max Real Estate Centre Inc.) — Fri, 01 May 2009 15:06:16 -0700

Nothing stimulates the real estate market like the arrival of spring. Now, I'm not referring to the March 21^st kind of spring when you're more likely still scraping ice off your windshield than visiting the garden centre. I'm taking about the birds chirping, buds budding, perennials blooming and warm weather kind of spring that we're finally enjoying now. This magical season somehow makes buyers more eager to buy, sellers motivated to sell and this year is no different. In fact, according to statistics released by The Canadian Real Estate Association (CREA), this spring's market rebound is well under way. Existing MLS home sales increased for the second month in a row in March 2009. A seasonally adjusted total of 31,135 homes traded hands nationally via MLS in March. This is an increase of seven per cent from the previous month, and builds on the 10.3 per cent activity gain in February. The number of transactions in March 2009 stands 18 per cent above levels reported in January 2009, when activity sank to the lowest level in a decade. The fact that these statistics are seasonally adjusted is significant. It indicates that this market rebound has more to do with just the coming of spring. Locally, the numbers look encouraging and one builder in Guelph that I know of actually put his prices up this week. If that's not a market barometer, I don't know what is.

Market Update

Dean Manton (Re/Max Real Estate Centre Inc.) — Tue, 07 Apr 2009 14:03:37 -0700

Real Estate & I-PODS

My 3 year old daughter asked me for an I-POD recently. She obviously isn't aware that we're in the middle of "The worst recession in 50 years". Or at least that's what they're calling it now. I'm going to wait a little bit longer before I call it anything because I think things are going to get a lot better or a lot worse very soon depending on what happens with GM, Ford & Chrysler. The outcome of this on-going drama will have a profound affect on what happens locally and across the province. This week Air Canada and Bombardier joined the list of Canadian Companies that are taking it on the chin.

For the first time since the market peaked in August 2008 the monthly average sale price was significantly lower than what it was a year ago. (- 2.5%) While this is not great news it's a lot better than Calgary's -8.2% or -19% in the U.S. First quarter sales were down 22% from the year previous and it's taking 20% longer to sell the average house. These statistics may indicate our transition into a buyer's market but the news isn't all doom & gloom. 14% of MLS sales in March were for full price or more and the inventory of active listings is still relatively low. Good news for real estate investors! The Guelph vacancy rate is down to 1.5% and mortgage money has never been cheaper! This is a great time to invest in real estate and of course, I-PODS.

Guelph, Ontario Buyer's Market or Seller's Market?

Dean Manton (Re/Max Real Estate Centre Inc.) — Tue, 18 Nov 2008 11:14:13 -0800

There are only two kinds of real estate markets, buyer's markets and seller's markets. It's easy to sell a house in a seller's market, practically any Realtor can do it. In a buyer's market it takes skill and determination. I don't believe we are experiencing a true buyer's market (at least not yet). It's more likely that we're between the two in a neutral market. Sales are down 30% from a year ago, prices seem to be down a little but the inventory of homes for sale is still as low as last year. A glut of homes for sale, the 3rd important ingredient for a buyer's market simply doesn't exist in Guelph. While there are some negative market indicators for October, the fact that 11% of homes sold for full price or more proves that the outlook isn't all doom & gloom. A well-conditioned, well-priced home should still sell in under 60 days. In some areas that's a seller's market!