REAL VALUE » United States

The Influence of the U.S. Fed Statement on the Canadian Real Estate Portfolio

Marcus Assalone — Fri, 27 Jan 2012 00:54:20 +0000

The U.S. Federal Reserve borrowed a play from Bank of Canada governor Mark Carney on Wednesday when they promised to keep interest rates low until at least the end of 2014. This is a good indication that Canadian rates will stay low as well, thus continuing the support of the real estate market here.

In Canada last year, the number of sales increased 2.2% over 2010 and the price of an average Canadian house increased 7.1%! In the GTA, the average house increased 10.8%. Low interest rates will only cause this upward pressure to continue, just as our Bank of Canada has been warning that some real estate markets are overvalued.

This concern that low interest rates are increasing house prices beyond their reasonable value, will force Jim Flaherty, the Canadian finance minister, to make it harder for Canadians to qualify for a mortgage. He may have to reduce the CMHC insured amortization to 25 years or tweak the mortgage qualification in other ways to reduce the amount of new homebuyers.

I have seen clients choose to look for homes outside of Toronto, or even outside of the GTA, even though they work in Toronto because they consider the prices that homes are selling for inflated. However, even on the fringes of the GTA house prices have ballooned to the same as they are here in Toronto. A big drawback is the increased commute and plus out there you don’t get all the amenities like public transportation and availability of shopping like you would in Toronto. Is there a winner in this situation?

The U.S. Fed also said they are considering printing more U.S. dollars, so expect the Canadian Dollar to raise above parity once again. This will once again allow Canadians to take some of the equity out of their homes and purchase retirement homes in the sun. Places like Arizona, Texas and the Mayan Riviera are sure to benefit.

HOME BUYING DIFFERENCES BETWEEN OLDER AND YOUNGER BABY BOOMERS

Marcus Assalone — Fri, 18 Nov 2011 12:22:19 +0000

A new survey from Coldwell Banker Real Estate finds that 87 percent of 1,300 agents and brokers polled agree that the economy is delaying baby boomers’ plans to sell their homes. That said, the desire to purchase and own a home, or more than one home, remains strong in this demographic cohort, especially so in the investment market segment. Another 87 percent of respondents said they have baby boomer clients who already own or are looking to own an investment property, including 22 percent of agents who report that at least half (50 percent) of their boomer clients either own or are looking to own such properties.

“The baby boomer generation has driven the U.S. economy for years, and like many Americans, they may be anxious about their next real estate decision,” said Jim Gillespie, CEO of Coldwell Banker Real Estate. “I know baby boomers are a very diverse group and cannot be described in generalities, but our survey clearly indicates that those boomers who are financially secure are actively seeking to buy their retirement home, or a second home, and they are taking advantage of the opportunities and value available in today’s market.”

The survey also underscored that by dividing boomers, which account for 79 million Americans, into two age categories, a more dynamic picture of the real estate market emerges. Here are the additional findings:

	Younger Baby Boomers (Ages 47-55)	Older Baby Boomers (Ages 56-64)
Second Homes:	More than one-third (34 percent) of agents say younger baby boomers (ages 47-55) are interested in purchasing a second home.	22 percent say older baby boomers (ages 56-64) are interested in purchasing a second home.
Looking For Larger:	31 percent of respondents say that younger baby boomer clients are selling their current home and looking for a larger. home.		Compared to 6 percent of older boomers.
Downsizing:	80 percent of agents say that older baby boomers are more likely to want to downsize than younger baby boomers (52 percent). Although the economy has impacted boomers, the reason for downsizing is not only about the desire to save money. According to the survey, 49 percent of agents say the primary reason boomers want to downsize is because they desire a simpler lifestyle, while only 28 percent said the leading reason boomers are downsizing is to save money.
Single Family Home or Other Options:	Younger baby boomers are much more likely to prefer a single family home than older baby boomers (82 vs. 47 percent of agents agree).	For the older baby boomers, agents say about half are (47 percent) are looking for a townhome or condo. 27 percent of agents say their older boomer clients prefer an active adult community.

Survey Methodology: Coldwell Banker Real Estate conducted an online survey among 1,333 Coldwell Banker real estate professionals across the United States about housings trends for baby boomers. The survey was fielded between September 6 and September 15, 2011.

*Some answer percentages in the above may not total 100 percent, if only the most popular responses are listed. In other cases, respondents had the option to check all that apply, which may mean that percentages total more than 100 percent.

In and Around Phoenix, Arizona

alialasady — Tue, 20 Sep 2011 05:28:56 +0000

Last time, I introduced you all to the wonderful golfing communities that are for sale in Scottsdale, Arizona. This time I am going to take you on a brief tour because the Phoenix area has so many more communities besides Scottsdale, each with its own character.

First stop! Litchfield Park is a small city to the west of Phoenix perfect for those of you who prefer the laid back lifestyle of the suburbs. Homes here are beautiful with elegant landscaping and you will always be close to a sidewalk cafe.

This 3 Bedroom 3 bathroom home is only $317,490. It is 3,000 ft sq and has three garage parking spaces. The Home owners association fee is $320 per year, and taxes were $3422 last year.

Open concept floor plan	Kitchen Appliances include a dishwasher
The kitchen has granite countertops and a reverse osmosis water filter	The living room is pre-wired for surround sound.
This is a salt water pool.	The spa is in the foreground in this photo

Maricopa is south of Phoenix, so it is close to another urban centre as well — Tuscon. Despite these influences, it has managed to remain a suburban community. No matter what you choose in Maricopa, you are sure to get a great deal. This town was hit especially hard in the recent housing fiasco, and there is still alot of inventory available which is keeping prices depressed. This particular home is not a short sale, but as you can see the new owners will have tremendous value in their purchase.

This home is offered at only $249,000! The homeowners association fee is $164 per month and includes access to community tennis courts, media room, exercise room, as well as the pool and spa. It includes a Casita (Guest House)

BBQ Island with a fridge.
Great Room is 20 feet x 17 feet	Granite Countertops
	Master Bedroom is 15 feet x 14 feet

San Tan Valley is a bedroom community south east of Phoenix. Most of the residents work in Phoenix and live here in this outdoors oriented community. This home is an example of a short sale property.

For sale at just $127,500! You can find short sale properties that are lower price, but none of them are as in good condition as this one. Alot of time bank owned properties need a considerable amount of work to make them livable or are in areas without any neighbours, but this is a well kept home made available at a great price.

Real wood Floors

Kitchen with Breakfast bar

Built-in shelves in the office/den

Double sink bathroom

large backyard

A great community including childrens playground

If you like the outdoors Payson is the town for you! Most of the surrounding area is under the jurisdiction of the U.S. Forest Service. It is situated north west of Phoenix and famous for its nature trails, fishing and hunting. Ancient Fossils and precious stones are some of the gifts that hikers will find in this area, making every outdoor activity an adventure!

For $459,00 you can be part of the adventure, and be emmersed in a natural world. This home actually backs on to the national forest.

Open floorplan creates a relaxing atmosphere when entertaining and is an efficient use of space.

The kitchen includes all the appliances you would expect including dishwasher, microwave and water filter

Formal dining area

Your fireplace creates cozy evenings

Living Room

Master Bedroom

Discover how bright the stars really shine from your deck.

This is your neighbourhood.

For those of you who need social interaction, we end the tour in the city of Mesa. Although its population is half a million people, it is still considered a bedroom community of Phoenix.

This beautiful home set in a golf club community is offered at $599,000. Last year annual taxes were $2854. The home owner association fee is $113 per month and includes the golf course, the pool and spa as well as tennis courts, and children play area.

Dramatic courtyard entrance	This home has its own private pool and spa
Living Room	Elegant dining area 14 feet x 12 feet
Gormet kitchen with granite countertops	Dining nook
Stainless appliances	Master Bedroom 19 feet x 18 feet
Master bedroom has a walk out to backyard	plus and ensuite bathroom
2nd Bedroom	3rd Bedroom
You will spend most of your time on the patio	Covered patio
another angle of the patio	BBQ area

I hope this brief glimpse of some of the areas around Phoenix has given you the understanding that there are many communities in this large area that offer different things to its residents. From urban to suburban to private oasis, and everything in between. When you have decided what you need from your Arizona home, please contact me and I will give you a personal tour of properties that fit your lifestyle and what you want to get out of this great area.