Eye on Barrie Real Estate

Who are you? The race to be the better rat.

Mike Montague (Sutton Group Incentive Realty Inc) — Wed, 25 Nov 2009 11:55:30 -0600

I get little blurbs of wisdom from all over, delivered by way of twitter or emailed to me in "thought of the day" platitudes from motivational gurus who's websites I have visited in the past. This morning I was told by one of these motivational icons that "we must all decide who we want to be in life".

I thought about it and kept drawing a blank. I began to get frustrated with myself until it hit me, I don't want to be anyone other than who I am now. The question is symbolic of the world we live in. We are constantly being told to do this or that by companies who make their money, (our money) by persistently trying to keep us unsatisfied with who we are. From fashion to fitness to furnishings the message is, you are less than you can be until you have what we've got for you.

It isnt about who you are. This is my whole point If you are a Ferrari or a Ford focus, it does not matter. What matters is where do you plan to drive and how often, What roads you take. That is the adventure of life and be it a Focus or a Ferrari we can travel what ever routes we select and even arrive at the same destinations if we so choose.

So the next time you are reminded by a TV or Magazine ad or a self proclaimed expert on human behaviour and motivation that you need to change who you are to be better, rethink the proposition. It isn't about who, but where you want to be. It is about investing in, not changing who you are. When it all winds down, the car with the most dents and scratches and the most miles on the odometer always wins.

Barrie and area October 2009 Real Estate Market Activity

Mike Montague (Sutton Group Incentive Realty Inc) — Wed, 18 Nov 2009 15:37:48 -0600

MLS® home sales activity rises to October record

MLS® home sales activity climbed to the highest level on record for the month of October in the area served by the Barrie District Association of REALTORS® Inc. Improving demand and fewer new listings continue to firm up the market.

According to statistics provided by the Association, MLS® home sales activity totalled 389 units in October 2009, jumping 39 per cent year-over-year. This is the largest gain since November 2007, and the fifth consecutive increase from year-ago levels.

Seasonally adjusted sales activity was up three per cent on a monthly basis in October (seasonal adjustment removes normal seasonal fluctuations). Building on monthly increases since the beginning of the year, seasonally adjusted activity now stands 87 per cent above the low from January.

“October was another record month for sales,” said Wendy Elzner, President of the Barrie and District Association of REALTORS®. “Activity continues moving away from the slump at the beginning of 2009 as demand improves and inventories shrink.”

The total dollar value of all MLS® home sales amounted to $104.4 million in October 2009, 43 per cent above year-ago levels. This is the largest increase in dollar volume in 23 months.

Total MLS® sales activity in the Barrie region numbered 401 units in October, jumping 41 per cent year-over-year. The total value of all MLS® properties sold in October 2009 was $107.4 million, 46 per cent above levels from October 2008.

The year-to-date average price for homes sold via the Association’s MLS® system in October was $264,057. That number is virtually unchanged from one year ago.

New residential listings numbered 606 units in October 2009, edging down one per cent year-over-year. This is the seventh consecutive month in which new listings have declined from year-ago levels.

The number of active residential listings on the Association’s MLS® system dropped 20 per cent from a year earlier to 1,579 units at the end of October 2009. This is the fifth double-digit decline in as many months, and the sixth consecutive month in which active listings have declined from year-ago levels.

There were 4.1 months of inventory in October. This is down from levels in each of the previous two months, and well below levels posted earlier this year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

The Barrie and District Association of REALTORS® Inc. covers a geographical area that includes the City of Barrie and part or all of the surrounding townships, including Springwater, Oro-Medonte, Innisfil, Essa, Bradford-West Gwillimbury and Clearview. The Association provides continuing education, Multiple Listing Service® (MLS®), statistical information, and many other services to its members.

Harmonized Sales tax will put homes out of reach for many Ontario residents

Mike Montague (Sutton Group Incentive Realty Inc) — Sun, 15 Nov 2009 22:56:00 -0600

I sent the following letter to our Provincial Member of Parliament in reference to statements made by our Provincial government while in Barrie on a whirl-wind (make that smoke blowing) tour this fall to try to convince us all that the additional 8% tax on most services in Ontario is something good that we should welcome and look forward to.

Well my MPP Aileen Carroll never bothered to acknowledge my letter of October 21st 2009 but I have posted it below for you to read. I would suggest all Ontario residents who read this forward it on to others you think will be impacted upon by this tax. We should all send letters to our Premier Dalton McGuinty to voice our concerns. He is counting on our complacency on this.

Dalton McGuinty Premier - Government of Ontario Email: dmcguinty.mpp.co@liberal.ola.org Website: https://www.premier.gov.on.ca/feedback/feedback.asp Phone: (416) 325-3777 Phone: (416) 325-1941 Fax: (416) 325-3745

Aileen Carroll, MPP Barrie - Member of Provincial Parliament
Email 1: acarroll.mpp.co@liberal.ola.org
Email 2: carrollaileen@yahoo.ca
Constituency Office
Suite 306
128 Wellington St W
Barrie ON L4N8J6
Phone: (705) 726-5538
Fax: (705) 726-2880

re: HST "Nothing to fear"

Our Provincial Liberal party has said over and over that the harmonized sales tax is intended to stimulate job growth in Ontario. I am hopeful it has that intended affect but it will be months if not years before we will be able to measure the results. What I do know to be absolute fact is HST will have an immediate negative impact on Ontario's real estate industry, one of the main pillars of Ontario's economy.

Each home purchase in Ontario typically adds many thousands of dollars to the economy by way of home improvements and home related purchases. Purchases that renters have no need to make. Both the Canadian and Ontario Real Estate Associations have concluded that the harmonized sales tax is going to add an additional $1449 on average to up front costs for the average resale home purchase in Ontario.

Our Liberal Revenue Minister pointed out in Barrie last week that "our fears are unnecessary". For him, 8% more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs just for starters is nothing to fear but it is for many of the people I come in contact with each day. Existing home owners are going to feel the tug at their wallets too come next June as this reformed tax will apply to utility and home service costs as well. This will with certainty push the ability to buy a home beyond reach for tens if not hundreds of thousands of families here in Barrie and throughout Ontario.

The impact of that on the economy will be felt by all. A majority of homes purchased in Barrie throughout this past year's recession were in the lower end of the price range, typically by first time home buyers who, though qualified financially for a mortgage were hard pressed to raise down payment and various costs associated with a home purchase. You probably bumped into some of them this year at furniture and appliance stores or building and garden centers around town.

Many of them had borrowed, saved and sacrificed to get just enough together to buy that first home and may well be renting still if they had to pay HST on top of all other up front costs. Our Provincial Liberal Government should be giving families just starting out in Ontario an advantage, not an added disadvantage.

I respectfully call on our M.P.P. Aileen Carroll to on behalf of all Barrie residents, ask the Provincial government to spare the above mentioned resale home purchase related services from Harmonized Sales Taxes, at very least, for first time home buyers. This tax will hurt Ontario's real estate industry and all of our industries that depend on a healthy real estate economy for their existence.

Sincerely,

Mike Montague Realtor - Sutton Group Incentive Realty Inc.

Barrie Ontario 705 718-6119

Canadian MLS® system safe for now

Mike Montague (Sutton Group Incentive Realty Inc) — Fri, 06 Nov 2009 16:20:31 -0600

My week began as usual with a coffee and a look at the newspaper headlines. A story in the Star about changes to the business of Real Estate to be imposed by the Canadian Competition Bureau had many in our industry buzzing by the end of the day.

The story falsely reported that a settlement between the Competition Bureau and CREA was reached that effectively would open the MLS® system (Realtor.ca - MLS.ca) to the public and it would no longer be a member-to-member system as it has been since its original inception by the Canadian Association of Realtors.

CREA has not reached a settlement with the Competition Bureau and CREA has not changed its MLS® Rules and Interpretations. The papers had it wrong. So much for journalistic integrity.

The Competition Bureau did requested that changes to certain Rules and Interpretations that deal with the acceptance of mere postings on Board MLS® Systems (i.e., where the agreement between the listing agent and the seller is that the listing agent will not provide services other than listing the property on a Board’s MLS® System). The Competition Bureau has said that if CREA does not remove these restrictions the Commissioner of Competition will initiate an application before the Competition Tribunal, which is a quasi-judicial body that can, among other things, make orders requiring or prohibiting certain conduct (e.g., requiring rule changes).

CREA is reviewing the request and any decision will have to meet the approval of its membership which includes all registered Realtors in Canada.

The concerns expressed by Realtors I have spoken with should the MLS® system be thrown open are justified.

Firstly as the system functions now all listings and their data undergo a high level of scrutiny to assure its integrity. If any and all persons were able to submit without this scrutiny the value of the service would not be possible and the courts would be filled beyond capacity from St. Johs to Victoria with buyers and sellers where properties were intentionally or accidentally misrepresented.

Second, it must be remembered that this system started as a paper catalog to allow the public and other agents to see the homes we list for our clients without having to drive up and down every street looking for signs on lawns. It naturally progressed to the Internet much like Sears or Canadian Tire stores have done with their catalogs. Ask yourself how foolish a ruling it would be if the Competition Bureau demanded that either of those stores allow you to post your garage sale items.

Another myth that the media has propagated this week is that Realtor fees are monopolized. This is completely untrue. Every person has the right to negotiate a fee that both parties can agree to. If an agreement can not be reached, there are no shortage of Realtors available to repeat the negotiating with until you are satisfied.

Something to keep in mind is that the agent pockets a much smaller portion of that fee than most would think and uses his/her portion of that fee to advertise your house. A listing costs the Realtor $1000 on average to list for a 90 day term whether it sells or not. A majority of owners who over price their homes will choose to change Realtors over properly adjusting their price.

Blame the game, not the player for the expenses involved in the business of Professional Real Estate sales. Those costs are what they are, the part you are negotiating is the agent's profit. You are hiring them as much for their negotiating skills as their knowledge of the business. Just the fact that you have read this far separates you from the herd. Here then is an important rule of thumb every seller should, but few ever consider. If the Realtor you are interviewing for the job of selling your home can't even protect their own income in negotiating with you, are you confident they can negotiate the best possible dollar on your home? Don't sell yourself or your Realtor short.

For the time being and given all I have learned this week, it will be a long time if ever before any bureaucracy forces the MLS® system from the reliable data base it is today into being a bulletin board with no accountability.

That is a victory for our industry only because it is a victory for the public. What the events of this week did do was give me and other Realtors an opportunity to hear the concerns and assumptions of the public about the business of Real estate.

Many posted stories on online forums about selling their home themselves and saving the commission fees.

Those who wish to sell their home without the representation of a Realtor are free to do so in Canada. There are private companies that for a fee will put your home on their websites and there are multiple media sources online and in print that will accommodate your advertising.

A little better than half the time a sale will go through without issues, The time it takes to sell private over through an agent is reduced in a heated market such as the Greater Toronto Area continues to experience. Those that did have a successful self sale can appreciate the investment of time and diligence required but what those who do hire a professional are more importantly paying for is the assurance that the deal will go off with little or no hitches or legal challenges and the proficiency and protection that is there should things not go according to Hoyle.

Much like an insurance policy, most days you don't need it but you are glad for it when you do.

Some Real Estate resources for the do-it-your-selfer

Mike Montague (Sutton Group Incentive Realty Inc) — Fri, 06 Nov 2009 14:44:35 -0600

For those with the time and ambition to represent themselves in the purchase or sale of real estate in order to try and save the out of pocket expense of hiring a Realtor, the link below will provide you with some good insight into the legalities that will or could come into play.

You'll want to have the knowledge that will save you from - or help you deal with some of the complecations that can arise when selling and buying real estate as the expense of a lawyer for unforeseen issues will quickly defeat your purpose.

Bookmark this link for future reference and if you have any questions I make myself available for consultation. Often a Tim Hortons coffee is all it will cost you.

All the best.

http://www.aaron.ca/columns/toronto-star-index.htm

Would You Live in a Haunted House? - Selling Stigmatized Property in Ontario

Mike Montague (Sutton Group Incentive Realty Inc) — Fri, 06 Nov 2009 14:21:47 -0600

Barrie has a few homes rumoured to be frequented by paranormal squatters and yes if yours is one of them, you have to disclose this information to potential buyers.

Via Jo-Anne Smith- Oakville, Burlington and Mississauga Region Real Estate, Ont (Sutton Group - Quantum Realty Inc., Brokerage):

The mood was one of gaiety and laughter as we stood
around in a circle, glasses of wine in hand, trying to outdo one another with ghostly real estate tales.

The setting was one of the office parties my broker at that time, regularly held to recognize the office achievements of his sales representatives.
When it came my turn to tell a story, I decided to relay the events that had occurred at an open house I had held at one of my listings the previous weekend.

There was a hush in our small group as I began my story...

On the previous weekend, I had done an open house at a circa mid 1800s home in one of Ontario's oldest towns.

When I had listed the house, the owner, one of the warmest and nicest women in her seventies I have ever known, told me the story about Edmund, who she was going to dearly miss when she moved.
‘Who is Edmund?’, I asked; thinking him to be a neighbour.
With a somber look in her eye, she told me in an outright fashion, ‘Edmund is the ghost that lives here in the house and has been here since the day we bought it 30 odd years ago.'

‘Oh?’ , I asked as my eyebrows rose in sincere interest.

‘Yes, he is very mischievous and he and I are friends. He often plays games like flushing the toilet, or moving my papers around from one room to another. ‘ , she said with a twinkle in her eye.

‘Really?’, I exclaimed, thinking to myself that perhaps she was just saying these things to amuse me.

She then proceeded to tell me about the history of the house, how rumour had it that the original owner, a blacksmith, had hung himself in the woodshed, which was now the family room, in the late 1800s.

She figured Edmund was this blacksmith’s ghost. She also said that various members of her large extended family had seen Edmund and that his footsteps were often heard walking around the house.

I finished up my paperwork, had her sign all the documents and drove back home to prepare the listing for turning in to my office first thing in the morning.
I didn’t think much more about her story until one grey, wet Sunday in the fall when I was at the property doing an open house.

Things were very quiet during the first half hour with no prospects turning out in the drizzly rain.
Deciding to go into the living room and read some magazines, I had no sooner sat down when I heard a door open and some footsteps walking across a hall upstairs.

Suspecting a buyer must have tiptoed by the living room doorway and not known I was here, I decided to go upstairs and investigate.
The second story of the home was not huge, consisting mainly of two bedrooms, a large hallway and a bathroom.

I checked the bathroom and each bedroom, including under the beds and in the closets and, upon finding no one, I decided I must have been hearing things.

With a bewildered feeling, I returned downstairs and to my spot in the living room where my magazine lay waiting.

I had barely sat back down when I heard the toilet upstairs flush and the loud footsteps above my head once more.
Thoughts of Edmund came to my mind, however I thought to myself 'there is just NO way'.

Surmising that there HAD to be SOMEONE up there, I very quietly snuck back up the stairs.
Pausing at the top landing, I gazed down the hall and towards the open bedroom doors.

Standing very still, I listened for any noises. Nothing.
I checked each wardrobe in the bedroom, under the beds once more, and in the walk-in closet and again checked the bathroom.
No one could be found anywhere.

By now I was beginning to have the sneaking suspicion that Edmund was making his presence known to me.
Feeling a bit foolish, I softly said ‘Hello Edmund.’.
Then I went back downstairs and finished my reading.

When the loud footsteps began again upstairs, I ignored them.
On that cold, drizzly fall day, not a single person had attended my open house, unless you count Edmund, of course.

An agent called me in the last ten minutes and said he was bringing over an offer and asked if he could present it to my seller after the open house.
I told him that would be fine as I knew my seller was coming back as soon as the open house had ended.

As I stood waiting for her in the doorway between the kitchen and the sunroom, I felt a coldness all down one side of my body.
I shivered as I sensed someone standing right next to me.

Moving out of the energy field to escape the uneasy feeling, I felt strong eyes upon me and decided to go outside and wait for my seller to return.
Edmund was getting too close for comfort.

The seller returned, we dealt with the offer, and before leaving I told her I had met Edmund. She seemed quite pleased with this and told me this meant that he liked me.

As I finished my story, I noticed how round and amazed my peers eyes had become.
Since we were a group of close friends and watched out for each other’s interests, one of them asked if I had told our broker about this.
No, I said. I didn’t think I needed to.
She replied that he would be very interested in hearing this story. I felt rather embarrassed and did not want to tell him. Unfortunately, right at that moment, he approached our group and asked ‘What’s up ladies?’

My friend announced ‘Jo has a story to tell you.’. Well, I guess I now had no choice but to relay the story to him.
Upon hearing the story, he proceeded to ask me if I had told the buyer’s agent who had brought the offer on the property about this. ‘No', I replied, 'I didn’t think I had to.’

‘You most certainly do have to disclose this to the buyer’s representative', he said.

He then told us that a few years previous, a local brokerage had been sued for not disclosing the facts or knowledge of a haunted house that one of his agents had listed.
The house was known to be haunted and no one had told the buyers or their agent about this.
The buyers moved in and a succession of very frightening things had occurred. Eventually they found out that the house was known to be haunted and they proceeded to sue the listing brokerage.

The listing brokerage had lost that lawsuit.

Office policy now dictated that we MUST disclose when one of our listings is known to be haunted to the buyer’s representatives and to potential buyers.
In my case, it turned out ok. I called the buyer’s representative and informed him of the possibility of a ghost.

It turned out he and his buyers already were aware of the ghost, since they all were local residents and had heard the stories over a course of many years.
The fact that it was haunted did not scare his buyers in the least. On the contrary, there ended up being a bidding war for the property precisely BECAUSE it was known to be haunted.
It seems the ghost was quite a local celebrity .

When listing any property in Ontario, if it is disclosed to the listing representative, by the seller, that it is haunted or otherwise stigmatized, or if it is common knowledge that we are somehow made aware of, then by law we must disclose it to all potential buyers and their agents.
This includes properties where murders/suicides have occurred and any other type of stigmatization that the property may possess.

Do you know the law regarding stigmatized/haunted properties in your province or state?

©2009JoSmith

Jo-Anne Smith, the author of this article, is a REALTOR® with Sutton Group - Quantum Realty Inc., Oakville, Ontario and welcomes your real estate inquiries. To contact her, visit www.Oakville-BurlingtonHomes.com

Moe the windy dog

Mike Montague (Sutton Group Incentive Realty Inc) — Wed, 28 Oct 2009 19:49:34 -0500

I took a drive with my friend Deb last weekend and Moe the dog came along for the ride. Moe added an interesting component to the sunday drive. Deb does the morning radio show at KoolFM here in town and....well have a look and listen as she elegantly describes the days events on her show the following morning.

Could this be the new Anthem for the City of Barrie? - Have a listen and share your thoughts

Mike Montague (Sutton Group Incentive Realty Inc) — Tue, 27 Oct 2009 09:09:14 -0500

Late this summer on a warm night around a campfire just outside of town, Grant Sauve serenaded the group, strumming out one song after another. He played for us a tune he penned called "Here in Barrie". I shared the story with some members of our City council the next week suggesting they contact Grant about making this an official anthem for our town. I don't know if anything transpired from that but this morning I awoke to the "Here in Barrie" song being played on KoolFM107.5

Hopefully the momentum is underway for Grant and "Here in Barrie"

Do not eat your cell phone while driving

Mike Montague (Sutton Group Incentive Realty Inc) — Mon, 26 Oct 2009 11:27:10 -0500

The province of Ontario officially banned hands on cell phone use while operating a motor vehicle on our roads today. As my monthly wireless bill will confirm, I am constantly on the phone as I move between appointments. A bigger distraction for me is trying to get that plastic tab on my Tim Horton's coffee to stay folded back while I drive.

I can't help but think of this as one more step towards a world where we all must by law, function within the boundaries and limitations of the lowest common denominators in society. This morning I opened a box containing my new and now required blue tooth ear piece. Amongst all the access packaging and manuals was a small square paper package containing granules of something meant to keep humidity levels down inside of the box I presume, but on both sides of the package in big bold letter were the words DO NOT EAT.

Amongst some others, today's new hands free legislation is geared towards those who's first instinct is to eat packages of forign substances they find inside of electronics boxes. On a daily basis I pull in an out of Real Estate company parking lots filled with cars. I speak to hundreds of Realtors every year. Rarey if ever do I recall a conversation about recent road accidents. Well one involving a dear recently but I am doubtful a cell phone played any part. I have no images to call up in my memory of crunched fenders or bumpers in any of those parking lots either.

Realtors with their vital need for communication were the pioneers of multitasking behind the wheel and as such I think we developed the required skills to walk and talk, drive and talk early on in the techno revolution. I'd like to think two airline pilot friends of mine have the required skills as well to multi task on the job. My guess is they are trained specifically to do so.

Here then is an idea. Instead of road legislation that once more imposes simple broad stroke reaction to an issue, why not create a new class of drivers license for those who need to do more than one thing while driving to earn a living? Keep it to communications devices, we don't need to be queuing our ipods while driving. I would take that course if it was offered, so would the 45000 plus Ontario Realtors (do the quick math on the revenue such a course would generate for MTO just on that rather than fines for hands free violations). It would make all of us who took the course safer drivers than an all out ban is going to.

How about you.. Do you have the dexterity and mental capacity to safely talk on the phone while driving?

Barrie and area September 2009 Real Estate Market Activity

Mike Montague (Sutton Group Incentive Realty Inc) — Tue, 20 Oct 2009 10:51:24 -0500

media release from BDAR President, Wendy Elzner.

MLS® home sales activity reached the highest level ever for the month of September in the area served by the Barrie District Association of REALTORS® Inc. Improving demand and fewer new listings continue to draw down inventories.

According to statistics provided by the Association, MLS® home sales activity totalled 422 units in September 2009. This is a 20 per cent jump year-over-year, and represents the fourth consecutive increase from year-ago levels.

Sales activity was up seven per cent in September from the previous month, the largest increase over this period in six years. The larger than normal monthly increase resulted in a monthly increase of eight per cent in seasonally adjusted sales activity (seasonal adjustment removes normal seasonal fluctuations). Seasonally adjusted activity in September stood 79 per cent above the low in January.

“September was another strong month for sales,” said Wendy Elzner, President of the Barrie and District Association of REALTORS®. “Rebounding demand and fewer new listings continue to draw down inventories and firm up the market.”

The total dollar value of all MLS® home sales amounted to $113.8 million in September 2009, 24 per cent above year-ago levels. This is the largest increase in dollar volume almost two years.

Total MLS® sales activity in the Barrie region numbered 439 units in September, rising 22 per cent year-over-year. The total value of all MLS® properties sold in September 2009 was $117.6 million, 23 per cent above levels from September 2008.

The average price for homes sold via the Association’s MLS® system in September was $269,755, up 3.5 per cent from one year ago.

New residential listings numbered 658 units in September 2009, down 10 per cent year-over-year. This is the sixth consecutive month in which the number of new listings is down from year-ago levels.

The number of active residential listings on the Association’s MLS® system declined 18 per cent year-over-year to 1,830 units at the end of September 2009. This is the fourth double-digit decline in as many months, and the fifth consecutive month in which active listings have dropped from year-ago levels.

The number of months of inventory was 4.3 months in September. This is down from 4.7 months in August, and well below levels posted earlier this year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

New Lakehead University campus in Orillia presents favorable investment opportunity in Central Ontario

Mike Montague (Sutton Group Incentive Realty Inc) — Tue, 20 Oct 2009 09:48:10 -0500

Construction of the Lakehead University Orillia Ontario Campus is well underway and the first of three phases of this new education facility is expected to open in the fall of 2010. The creation of a new university presents a rare and significant real estate investment opportunity to those who will take advantage. Property values will be positively effected in Orillia in reflection of the demand for rental accommodations this facility is about to create.

Average home prices in Orillia are lower than Barrie to the south yet average rental rates for rooms, flats and apartments are on par with Barrie and are certain to increase with the imminent demand ahead. Orillia has many older homes in and aroud the area where the Lakehead campus is being constructed, many are on public transit routes and are good candidates for immediate or future rentals.

My advice to investors who have been underwhelmed by the ROI rates the Simcoe county rental market has shown for the past while is to take a serious look at the Orillia market and the opportunities it presents.

Parents of students who will be attending Lakehead University in Orillia will want to consider the financial benefits of purchasing over renting. Learn more

Should you wish to be kept current on listing activity for the Orillia area call or email me with your purchase criteria. I will provide you with regular updates on current and future properties for sale.

Corresponding links:

Orillia Lakehead off Campus housing department

News release

City of Orillia

I can't hear you America......

Mike Montague (Sutton Group Incentive Realty Inc) — Sat, 17 Oct 2009 15:29:48 -0500

I'm up here and most of you on Active Rain are.....well, down there. But like any good neighbor, it's hard to just sit looking on while the house across the street is on fire and not want to do something.

I can't help but wonder where the voices of the overwhelming majority are in the US? We can hear the screams and feel the vibration from the far right clear across the boarder here as they shout and jump up and down, but I am not hearing much from those who are again, the majority in the United States.

You guys need to make some noise. Even with the good captain you've elected. He needs some oarsman to help guide and power the ship you have put him on or Rush Limbaugh and the rest of his pirate followers will sink your ship once again.

What continues to happen on Wall Street is criminal and should have every American with a blog encouraging everyone else to step up and be counted. You have to take back control of your financial system while you still have a democracy.

Ontario Real Estate Investment - Where, when and what?

Mike Montague (Sutton Group Incentive Realty Inc) — Thu, 15 Oct 2009 10:14:45 -0500

Real Estate investment in Ontario or elsewhere requires some basic considerations during the where when and what stages. The interview below with Don Campbell, head of the Real Estate Investment Network considers these factors and their results in our current economic climate. Some of REIN's conclusions bode well for Barrie Ontario.(hear more about this)

Barrie Ontario has many if not all of the resources that will be of highest demand from a City in the forseeable future. There is a formula or template for taking a city with the resources of Barrie from relative obscurity to the forefront econimically. Only a few North American cities know and benifit from it. With it comes tax stability, a thriving city core and top shelf public services and infrastructure. We are close, third in fact in a pole by REIT for best places in Ontario to invest in Real Estate.

We are a year away from municipal elections in Ontario, fresh blood ideas and enthusiasm to stimulate local governments and hopefully bring forward the best minds to insure Barrie its place out front where it belongs.

Some well needed perspective

Mike Montague (Sutton Group Incentive Realty Inc) — Tue, 13 Oct 2009 19:48:43 -0500

Consumption on a per capita level in the United States and Canada has grown in our lifetimes reaching a point within the last ten years that could be considered glutinous. If nothing else it certainty has proved to be unsustainable as we are witnessing in our....Click for full text

Barrie Real Estate amongst best in Canada for investment

Mike Montague (Sutton Group Incentive Realty Inc) — Tue, 13 Oct 2009 01:14:44 -0500

A great and growing collection of Barrie and area photographs

Mike Montague (Sutton Group Incentive Realty Inc) — Mon, 12 Oct 2009 11:35:55 -0500

Thanks to all who continue to contribute their great area photographs to the "Barrie - One more reason why I live here" photo pool in Flickr.

Do we need more clowns in space?

Mike Montague (Sutton Group Incentive Realty Inc) — Wed, 30 Sep 2009 13:54:03 -0500

I saw in this morning's news that the Canadian CEO of Cirque du Soleil, a former circus clown blasted off for the International Space station for a 12 day visit. A 35 million dollar equivalent to a ten year old boy's first pony ride at the fair.

I like the idea that a clown can rise to the top and all (nothing unique about that.) In his comments to media, he justified his self indulgence saying his adventure "will raise awareness of the water shortage problems of the world." The weight of guilt has no place in the baggage of a civilian space traveler, it's burdensome enough for those of us with both feet on the ground.

Do we as individuals really need so much wealth that literally nothing in this world is enough to satisfy our spending urge? I got to thinking about Michael Moore's message that our system of capitalism is faltered and failing. It is a system with a life span and we are nearing its end , at least in its current form. For it to continue it will need to be updated. We can't just heedlessly watch it morph into something that no longer respects the values of the democratic societies it is supposed to serve.

Here is an unpolished thought I had this morning as that first coffee was kicking in, something to mull over. Suppose like the bananas on the fridge and the coupons stuck to its door, money itself had a shelf life, an expiry date. You and I and everyone else are welcome to earn as much as we wish by legal means. We can accumulate debt if we so wish but the money we earn today is only good for, let’s say for example, one year?

Suddenly the value of money would hold a new dynamic. The focus would shift from how much can I take out of circulation to how best can I spend it before it spoils. Just imagine, all of the planet's wealth in circulation on an annual cycle.

We would be sending bus loads of clowns into space no doubt but that’s ok, it would create a thriving space tourism industry and many jobs in the process. Those space tourism workers will need homes and I can help with that. Perhaps more might even think to actually buy clean water, food or medicine for the third world. We need to demonstrate humanity not just gaze down on it from 220 miles up at $34 per second.

Have a good day

http://www.timesonline.co.uk/tol/news/world/europe/article6854053.ece

Canadian Economic Study Underscores Need to Remove Tax Barriers to Property Reinvestment

Mike Montague (Sutton Group Incentive Realty Inc) — Mon, 28 Sep 2009 11:42:28 -0500

CREA September 28, 2009

OTTAWA – Tax policy discourages the sale of income property and impedes a chain reaction of economic stimulus and job creation – elements that could greatly contribute to a commercial real estate market recovery and community redevelopment. A new Altus Group economic study prepared for The Canadian Real Estate Association (CREA) found that income property sales generate sizeable economic activity in a number of industries, and support job creation.

The study estimates, between 2006 and 2008, the typical multi-unit residential income property transaction in the Greater Toronto Area, Greater Calgary Area and Greater Vancouver Area generated a total of $287,850 in ancillary spending. It also found that 53 jobs were created for every 100 transactions.

“Income property sales generate a substantial amount of spin-off spending,” says Peter Norman, Senior Director, Altus Group. “They create opportunities for trades people in renovations and repairs; fees for professionals; income for industries that produce construction materials; and tax revenue for all levels of government.”

Unfortunately, many income property owners are reluctant to sell and reinvest because of the capital gains tax and recaptured capital cost allowance.

“The tax system provides a powerful incentive to retain income properties with large accumulated gains at the expense of more productive opportunities,” explains James McKellar of York University’s Schulich School of Business. “The consequences are underutilized, energy-inefficient and boarded up buildings across the country. It restricts work opportunities in redevelopment and impedes creation of additional rental housing in built-up areas.”

“The tax system encourages us to hold onto our property,” according to George Kirkland Jr., an owner of a multi-unit residential property in St. John’s Newfoundland. “After paying the tax, we would not have enough money left to purchase a similarly valued property and realize the same level of income.”

The commercial real estate market deteriorated significantly in 2008, as a result of the global recession, and has yet to show signs of recovery. A recent report by CB Richard Ellis Limited illustrates commercial real estate market transaction volumes declined by 51 percent, year-over-year, from $10 billion midway through 2008 to $4.9 billion midway through 2009. In the first half of 2009, the number of commercial real estate transactions also decreased sharply year-over-year, dropping 38 per cent to 1,569 at mid-year 2009 from 2,542 transactions at mid-year 2008.

“Allowing tax deferral on income property reinvestment would provide a needed kick-start for the ailing commercial real estate market,” says CREA President Dale Ripplinger. “The spin-off activity from income property sales would help strengthen other sectors hard-hit by the economic downturn, and the resulting renovations and redevelopment would help revitalize communities across the country.”

There is widespread support for allowing tax deferral on income property reinvestment, including the National Trade Contractors Coalition of Canada, the Canadian Construction Association, the Canadian Federation of Apartment Associations and REALpac – the Real Property Association of Canada.

The complete study from Altus Group Economic Consulting is available in PDF format at www.crea.ca or by sending an email to info@crea.ca.

For further information, please contact:
Alyson Fair
Publicist, The Canadian Real Estate Association
613-237-7111 ext 2284
afair@crea.ca

So you want to save the commission?

Mike Montague (Sutton Group Incentive Realty Inc) — Thu, 24 Sep 2009 11:26:53 -0500

This Realtor puts it as eloquently as possible. Matters of consequence to your money or your health are better in the hands of a professional. There will always be those who are penny wise and know better. For them I am just glad the fire department doesn't charge a fee for their services.

Via Dr. Chantal Saucier (Keller Williams Realty Acadiana):

One comment we often hear as real estate professionals is "I'm selling my home myself to save the commission." That is fine so long as you don't think that your potential buyers don't know that.

In fact, did you know that there are only 4 kinds of buyers out there? That's right, 4. And they are either working with a Realtor or they, too, will want to save the commission. If you have a "For Sale By Owner" sign in your yard, everyone knows that you are not paying a commission to a professional.

1. First time home buyers: They are the most likely to seek the help of a professional because they do not know all the ins and outs of the home buying process. Even if they come across your home and like it, they will want their agent involved. Being open to working with a buyer's agent and paying at least some commission might help you get your home sold.

2. Relocating buyer: They, too, usually work with a real estate agent because they are not in town, yet. Again, if you are willing to pay a buyer's agent commission, you may be able to work with one of these buyers and sell your home, that is, if you are available to show it when this buyer is in town house shopping. If not, they might just buy your neighbor's house because it's listed and on a lockbox and they were actually able to view it.

3. Moving up (or moving down) buyers: They tend to feel more confident about the process because they have been there before. However, if they choose to work on their own, they'll negotiate you down on your price to save some of the commission themselves. Since 2 out of 3 FSBO that go under contract do not close when no Realtor is involved, it might not matter if you split the would-have-been commission with this buyer. The question is: can you get them to the closing table?

4. Investors: Probably the most savvy buyer out there and you can bet that they will not pay you a commission to work the sale of your home for you. Unless you are an investor yourself and you've sold many homes in the past, this buyer knows more about the process than you do and he/she knows that they will have to do all the work. And, unless you are an awesome negotiator, you will not save money if your buyer is an investor. Not a penny.

There you have it! These are the only 4 kinds of buyers out there, no more, no less.

Here's another way to look at it: appraisers do not care about the commission. Your house is worth what it is worth, whether or not there is a commission involved. For example, if you live in a neighborhood where homes of similar age and sizes sell for 150K, then your home is worth 150K.

With a 6% listing commission, you would have to pay 9K in commission, usually split between the listing and the selling brokers (if two agents are involved). If you sell on your own, you are not going to save the full 9K. Buyers will want to split those savings with you and might only offer you 145K for your home. If this is acceptable to you, all is good, but your savings are now down to 4K. If you calculate 2 or 3 months extra on the market (and 2-3 months of extra house payments), the advertising and signs costs, and the time involved in showing your home numerous times to buyers who may or may not qualify to buy it, is it really worth the aggravation? Besides, getting an offer/contract on your home is the easy part. Do you know what to do if you ever get that far?

I know what my time is worth, do you?

So where are the Barrie real estate deals in wake of the recession?

Mike Montague (Sutton Group Incentive Realty Inc) — Tue, 22 Sep 2009 20:20:22 -0500

As we reached a point early in 2008 where Canadian news media began to report that we too were now seeing the symptoms of recession in our own economy, Realtors began to wonder how bad it might get and just what the business of Real Estate was about to endure.

My expectations were that in the event of a full blown recession we were going to begin seeing homes listing far faster than they could sell and the result of that increased inventory would drive down the price of homes in general.

Well we never really saw that happen here in Ontario. Instead what we saw was many would be buyers and sellers adapting a wait and see position. Buyer activity slowed towards the end of 08 and was late to pick up again in 09. By June of 09 sold signs were appearing with more frequency on dated listings all around the Barrie area and buyers were now taking advantage of the record low interest rates on mortgage money being offered.

In many ways our recession here in Canada felt like the winter pre storm warnings we are used to getting every year that threaten to see us buried under a paralyzing layer of heavy snow but instead give us a light dusting.

That isn't to say we got off scott free. The majority of sales activity now and for all of this year has been homes selling under $300,000. In the past 30 days there have been 284 residential sales registered with the Barrie Association of Realtors, only twenty percent or 59 of those sales were of homes over $300,000. There are as of the time of this post, currently 833 active detached listings which are at or above the $300,000 mark and 632 listed in the more active range below $300,000.

We still have an active first time buyer market that is responsible for much of the activity in the lower price range. Homes above $300.000 generally sell to those who have built up equity from a previous home purchase to work with. With the scent of recession still lingering, far fewer are trading up, though this is one of the better times financially to make such a move.

So where are the bargains? Well it isn't in the first time buyer range, these homes are still selling within reasonable time frames at healthy list to sell price ratios. Townhouses continue to increase in value as are condo's and detached homes in this range. The bargains are to be found in the higher priced homes.

If you have out grown your starter home but are waiting on the final seal of approval from the media that the economy has fully recovered you have to ask yourself why. If job uncertainty is an issue for you then holding tight on that move up to a more expensive home is understandable.

Otherwise you are likely in a home that has continued to appreciate in value on through the past year, mean while the higher priced homes you have your sights on are taking far longer to sell which in many cases is going to puts you in the drivers seat at the negotiating table. Many sellers in this range are anxious just to make a deal. A sacrifice on price is going to appear more attractive to many than chancing another six months on the market before the next offer comes, more so if that home is and will be sitting vacant until it sells.

If you want to know were to look for the hidden bargains the $300k plus market is where you are most likely to find them..

In addition, and even of greater financial significance to you is the fact that interest rates are still at all time lows right now. A rise of just one percentage point on a $300k mortgage means a difference of about $200 each and every month which works out to over $12,000 for just the first five year term on a 25 year mortgage! Again that's just a one percent difference.

Much like the stock market most wait until the frenzy to decide to buy when prices are on the climb once again and interest rates are no doubt adjusting back to their higher levels. Today's posted variable rates are sitting just over 3%. The average rates over the past 25 years in Canada have been between 6 and 7 percent.

My prediction is Barrie's inventory of higher end homes will see healthy value increases over time for the following reasons.

Barrie has very little undeveloped residential property left within its boundaries
There is demand from the public and preassure by the province for Barrie to build higher density, lower cost housing on its remaining undeveloped residential lands. https://www.placestogrow.ca/index.php
Central Ontario's economy will continue to grow creating increased demand for quality housing in Barrie.

Do the math. Then decide what its worth to you to make your move.

To keep yourself up to the minute on home lisings in your price range of choice visit HotBarrieListings.com

The deadline for the $1350 Home Renovation Federal Tax Credit is just a few months away

Mike Montague (Sutton Group Incentive Realty Inc) — Wed, 16 Sep 2009 21:02:14 -0500

The final deadline for the federal Home Renovation tax credit is closing in. You have until February 1st 2010 to take advantage.

The Home Renovation Tax Credit applies to eligible expenses of more than $1,000, but not more than $10,000, resulting in a maximum non-refundable tax credit of $1,350 [($10,000 - $1000) x 15%]. The Home Renovation Tax Credit is subject to Parliamentary approval. You can claim a non-refundable tax credit on your 2009 income tax return. This tax credit is based on eligible expenses incurred for work performed or goods acquired after January 27, 2009 and before February 1, 2010. Only agreements entered into after January 27, 2009 and related to a qualified dwelling are eligible.

http://www.actionplan.gc.ca/eng/media.asp?id=1531

Canadian Real Estate Activity August 2009

Mike Montague (Sutton Group Incentive Realty Inc) — Tue, 15 Sep 2009 20:05:09 -0500

MLS® home sales remain strong in August

Published September 15, 2009 Canadian Real Estate Association

National resale housing market sales activity remained up from year-ago levels in August 2009 for the third consecutive month, posting the largest year-over-year gain in more than two years.

According to statistics released by The Canadian Real Estate Association (CREA), a total of 42,483 homes traded hands via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards in August 2009. This represents an increase of 18.5 per cent from the same month last year, and the third consecutive year-over-year gain of more than 15 per cent. Sales were 6.6 per cent below the record for the month of August set in 2007.

On a seasonally adjusted basis, national MLS® home sales held steady. At 42,426 units, seasonally adjusted activity came to within six-tenths of one per cent of levels in the previous month. Seasonally adjusted activity in Alberta and Quebec declined, offsetting activity gains in British Columbia. Seasonally adjusted activity still remains 60.8 per cent above the decade-low in January.

“National sales activity in the third quarter is on track for a significant increase compared to the second quarter,” said CREA President Dale Ripplinger. “Low interest rates and affordability continue to attract homebuyers to the housing market. Consumer confidence continues to rise, which bodes well for activity in the coming months.”

Resale activity in August 2009 was up from year-ago levels in about approximately three-quarters of all local markets. Year-over-year gains in Vancouver (117 per cent), Toronto (27 per cent), Calgary (17 per cent) and Montreal (nine per cent) contributed most to the national increase in activity. Aggregate MLS® home sales activity for 25 major markets posted the third consecutive increase from year-ago levels of more than 20 per cent in August.

Demand continues to improve in Canada’s more expensive housing markets, drawing the national average price upward. The national MLS® residential average price rose 11.3 per cent from year-ago levels to $324,779. This is the highest national average price for the month of August.

The MLS® residential average price for the month of August set records in every province except Alberta. A sustained increase in sales activity, including a rebound in activity at the higher end of the price spectrum in some of Canada’s priciest markets, is skewing the national average price upward.

This price trend is similar but more muted for the weighted national MLS® average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national MLS® average sale price in August 2009 was up 7.1 per cent year-over-year, but down eight-tenths of a per cent from the previous month.

The weighted average price increase for an aggregate of 25 major markets reveals a similarly muted trend compared to its unweighted counterpart. The major market weighted average price rose 5.3 per cent year-over-year in August 2009, compared to an increase of 11.8 per cent for the unweighted major market average price. The major market weighted average price compensates for changes in sales activity in major markets by taking into account the proportion of privately owned housing stock in each market in relation to the major market aggregate.

The number of new listings coming onto the MLS® market posted the eighth consecutive decline from year-ago levels. New residential listings were down 8.9 per cent year-over-year to 64,167 units, the lowest level for the month of August in five years.

Improved demand is combining with fewer new listings to draw down inventories on the housing market. There were 212,227 homes listed for sale on the MLS® Systems of real estate Boards in Canada at the end of August 2009, down 13.3 per cent from a year earlier. This is the fourth consecutive year-over-year decline in active listings, and the largest decline in more than six years.

Nationally, the number of months of inventory was up slightly to five months in August from 4.4 months in July, but still well below the recessionary peak of 12.8 months in January 2009. The number of months of inventory edged up in most major markets in August. The number of months of inventory is equal to the supply of active listings at the end of the month divided by the number of sales that month. It represents the number of months it would take to sell current inventories at the current rate of sales activity.

The seasonally adjusted dollar volume of all residential MLS® sales set a new record in August 2009, rising 1.5 per cent from the previous month to $14 billion. British Columbia contributed most to the increase, having posted the highest seasonally adjusted dollar volume on record for the province.

“The balance of sentiment making big-ticket purchases pushed into positive territory in August for the first time since early last year,” said Chief Economist Gregory Klump. “Recent cuts to mortgage interest rates will no doubt provide further support for this indicator, which is an important factor underlying the housing market.”

“Activity may be leveling out as we indicated in last month’s revised resale housing market forecast. Average prices dropped sharply over the second half of 2008 and have rebounded since then, so comparisons against year-ago levels are likely to show continued improvement over the rest of 2009.”

Remembering September 11, 2001

Mike Montague (Sutton Group Incentive Realty Inc) — Fri, 11 Sep 2009 14:46:43 -0500

Every decade offers asylum to events that modify who we are individually and collectively. The 1960's, the decade I came into the world, took President John F Kennedy, Senator Robert Kennedy and Reverend Martin Luther King from us at the hands of human darkness then gave us restored hope for our future in its final year as we watched men step onto the surface of the moon from some 230,000 miles away.

Only a few events in my life time have had the certain pith to mark a day and lay claim to it on every year that follows. Today is the anniversary of the events of the morning of September 11, 2001. Everyone can recall precisely where they were and what they were doing in the moments they learned that the World Trade Center towers had been hit by a second plane.

Everyone recalls the sudden debilitating sense we felt on learning the Pentagon had been the target of yet another hijacked commercial airliner. In those moments following news that this was not a singular event and while thousands of commercial airliners still filled the skies over the US and Canada we can recall the helpless feeling as we waited and wondered what was next and if the buildings and cities close by or containing us, our family or friends would become a part of this surreal cataclysm.

In our final year of the new millennium's first decade and on this day, we recall once again the events of 911 and the unique ways they attached themselves to each of us.

Personally I wonder about those who lost friends and family members, how their lives were altered and what this day must represent to them. I imagine how the perspective of the world has been displaced permanently for those who witnessed first hand the events of that day. I ponder the retrogressive nature government can default to in the face of crises. and I contemplate those who have themselves experienced war on their own soil.

We have the harrowing memories of a few uncertain hours on September 11 2001. An isolated event by comparison with September 1st 1939 which saw the invasion of Poland and the start of WW2. In the seven years to follow, much of the world would go to bed each night fearful that only time stood between them and certain death in one of the bombing raids that devastated cities throughout much of Europe and Britain that in the end, left as many as 70 million persons dead by hand and decision of others unknown to them.

As 911 becomes as distant in time to us as WW2 was to me as a young child I appreciate more the recollections of family and others who lived through it and the purposeful nature in which they memorialized events seemingly long past.

Barrie and area August 2009 Real Estate Market Activity

Mike Montague (Sutton Group Incentive Realty Inc) — Wed, 09 Sep 2009 12:54:00 -0500

media release from BDAR President, Wendy Elzner.

Home sales activity remains strong in August

MLS® home sales activity in August 2009 was up from year-ago levels for the third consecutive month in the area served by the Barrie District Association of REALTORS® Inc. Meanwhile, active and new listings continued retreating from elevated levels.

According to statistics provided by the Association, MLS® home sales activity totalled 394 units in August 2009, jumping 12 per cent from the same month last year.

“August was another strong month for sales,” said Wendy Elzner, President of the Barrie and District Association of REALTORS®. “New listings also remain down from levels recorded last year, which continues to firm up the market.”

The total dollar value of MLS® residential property sales amounted to $103.7 million in August 2009, 11 per cent above year-ago levels.

Total MLS® sales activity in the Barrie region numbered 403 units in August, rising 12 per cent year-over-year. The total value of all MLS® properties sold in August 2009 was $106.1 million, 10 per cent above levels in August 2008.

The year-to-date MLS® residential average price for home sales in August 2009 was $262,692, down 0.7 per cent compared to the same period last year.

New residential listings numbered 608 units in August 2009 to the lowest level for this month in five years. New listings declined 10 per cent year-over-year, making it the third double-digit decline in as many months, and the fifth consecutive month in which the number of new listings was down from year-ago levels.

The number of active residential listings on the Association’s MLS® System dropped 10 per cent year-over-year to 1,845 units at the end of August 2008. This is the third consecutive double-digit decline in the number of active listings.

The number of months of inventory edged up to 4.7 months in August, compared to 4.1 months in July, but remains well below levels posted earlier this year. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

Where are the best places to retire?

Mike Montague (Sutton Group Incentive Realty Inc) — Wed, 09 Sep 2009 10:12:09 -0500

Canadians and Americans each have their respective lists of top locations to retire. Last year's list is probably much the same as in each of the last 25 - 30 years but wait....theres someone at the door.

It's the baby boomer generation. Well at least the front end pioneers of that generation and they're now looking for a place to settle in to relish their waining years. Salsbury steak and rice pudding at the senoirs villa isnt going to satisfy the appitites of this bunch.

We are seeing a wole new wave of retirement communities, ("lifestyle communities" is the acceptable reference term) and they are springing up within earshot of golf courses, ski resorts and beach communities from Victoria to St. Johns here in Canada and across the United States.

What I want to ask here in order to hopefully encourage a health database of insight from fellow Realtors and blog visitors is this. Where are the best places to retire and why?