Canadian Real Estate Prices Rise at Slower Rate

Latest statistics released by the MLS® Home Price Index, the chief sales index in Canada, showed prices rose in March, year on year, but gains have been slowing. The sales increase seen in March was the slowest since June 2011, rising by just 5.1% compared to March of the previous year.

© RealPhotoItaly - Fotolia.com

Wayne Moen, CREA President, explained that the latest figures show that Canada's real estate sector is almost certainly slowing down:

'Overall price trends show that Canada's housing market continues to moderate. Price increases have been shrinking since last fall. While that trend paused in March, it may reflect an early spring in many parts of the country, resulting in increased competition among buyers. That said, headline numbers mask some important differences in price trends among local housing markets and housing types.'

Moen further stressed the need for buyers and sellers to seek expert advice from their local realtor on price trends in their area before going ahead with any transation.

In all of the five markets being tracked, the MLS® HPI is above its level a year earlier, with Toronto showing the biggest gains of 7.3%. Prices are above the previous year's levels in all housing categories tracked, with two-storey single family homes showing price gains of 6.8%. Compared from February 2012 to March 2012, the MLS® HPI rose by 1.3%.

Gregory Klump, chief economist for the CREA commented on these figures saying 'The index typically experiences these types of month-over-month gains in the spring, which coincides with when the balance of supply to demand is tightest. With that in mind, it's important to look at month-to-month movements in the context of how they compare to the same period in previous years, it masks slowing price momentum in the Lower Mainland area of British Columbia. Slower price gains there were offset in March by a modest acceleration of price gains in Calgary, Toronto, and Montreal.'

Toronto prices have seen the largest price gains since the middle of last year, and the rise in Toronto's composite MLS® HPI is a full 2% more than the increase in Vancouver's composite index, and this price gap may widen even more in coming months as the Vancouver market shows signs of slowing down, while sellers in Toronto are benefiting from a lack of supply.

Matchmaker Brings Quality Realtors To Your Virtual Doorstep

Finding a good realtor, one that you can really 'click' with, is a bit like finding the right person to marry ' takes a bit of searching, perhaps you kiss a few toads, but one day, you meet the right one, and 'bam' it's simpatico!

Finding a realtor is made easy with AgentMatch © Kurhan - Fotolia.com

The only problem with approaching your search for an agent in this manner is time. You want to buy (or get out from under) a house now, not later, and you are busy living your life so you really don't have the time, or the inclination, to 'try on' every realtor in your neighborhood.

Aren't you lucky to be living in the time you are now! The online residential real estate website NeighborCity®  is offering a service called AgentMatch®, which is kind of like an 'E-Harmony' for the real estate world. This service provides ratings on just about every active residential real estate agent across the country, matching up individuals with quality realtors who are the best fit for the needs of that individual buyer or seller.

The difference between this service and many such services which merely provide the listing realtors of particular properties is that a buyer or seller can search through the company's database of agents and select the best performing agents in their region. They can search for those who possess the expertise that the client needs ' for example, a realtor familiar with distressed sellers, first time home buyers and even investors.

Ratings are given to each agent according to a number of criteria, for example the historical data on their previous sales and listings, which is then analyzed according to criteria deemed most important by consumers. After reviewing an agent's performance, an overall score is determined, which is then provided along with graphs and other metrics which offer a visual picture of that agent's effectiveness in the marketplace.

The score takes in information such as the agent's success rate in sales, number of days on the market, the difference or 'spread' between asking price and sales price, average price per square foot, neighborhoods, types of listing and cities where agents work. The information is then compared to peers (as established by the rating service) to determine a 'NC Agent Score' which buyers and sellers can use to when reviewing the agents' performance in the marketplace.

Knowing an agent's score eliminates a lot of the guesswork when it comes to knowing how well an agent will meet your needs. AgentMatch saves customers time and work by matching individuals with the agent that best suits their needs based on the property that they are buying or selling. Click here to see a sample page.

The founder and CEO of NeighborCity said:

'Buying a home is one of life's most important decisions, but until now the data necessary to make an informed decision was unavailable to the general public and reserved for industry insiders and well-heeled hedge funds. Many in the industry believe the data should remain behind lock and key and the current 'buyer beware' environment should remain unchecked. However, based on my first-hand experience, having the right broker can mean the difference between a transaction being successful or financially disastrous. Our goal is for our customers to avoid those pitfalls and experience the benefits that come from working with a top rated professional.'

Much like the 'matchmaker' of times gone by, AgentMatch acts as a liaison between clients and  agents. AgentMatch users are able to communicate via text and email with top agents of their choosing, without giving out personal information. The first agent to reply to the interested individual has the opportunity of winning the client's business, however the client can choose whom they will hire and if they are not satisfied with the agent they chose, NeighborCity will terminate the relationship and connect them with another realtor.

In some localities, where state law does not forbid, NeighborCity offers users of the service a Feedback Bonus at closing which is in essence a rebate on a portion of the agent's commission.

Finding a good match isn't always easy, but I think that NeighborCity has a pretty good thing going with their AgentMatch service. Getting money back isn't so bad either. After all, the closest you'll get to getting money back after the honeymoon is returning the wedding gifts.

Foreclosure Activity Up In Judicial States, Down In Non-Judicial States

Realty Trac released their latest report on foreclosure activity. They use the term 'mixed' to describe the results. While that is generally true, the real story is found in the states where the cities in the report are located.

© zentilia - Fotolia.com

Those cities showing increases in foreclosure activity are located in 'Judicial Foreclosure' states. Included were Pennsylvania, New York, North Carolina, Virginia and Indiana. These states had cities showing increases from 22% to 49%. A big jump.

The cities posting much lower foreclosure activity are all in 'Non-Judicial Foreclosure' states. These include Nevada, Utah, California and Massachusetts.  That being said, California cities still occupy many of the top spots on the list of most active cities for foreclosures. The Riverside-San Bernardino area is still plagued with the highest foreclosure rate in the nation, but even it's activity level is down relative to the same period in 2011.

'Judicial Foreclosure' means basically that a court order is required to foreclose. Waiting for court dates, preparing the necessary documents and the legal process itself can take more than a year to complete.

'Non-Judicial Foreclosure' essentially means that the borrower grants title back to the lender, at the initial closing of escrow, as collateral for the loan. No court appearance needed. They just notify you that they are going to foreclose if you don't bring the loan current. That process can be completed in less than 45 days.

The whole robo-signing scandal put a damper on foreclosure activity primarily in those states that require a court appearance by a lender-plaintiff, to prove that they actually have the legal standing to foreclose on a property.  Lenders in these states had to virtually stop doing foreclosures unless they could verify that they had the proper documentation required by the court.

Essentially the states that do not require a court hearing, about 26 states in all, have proceeded with foreclosures and continued to move the pipeline along. Thus their foreclosure rates have leveled out or are trending downward, even though they may still be among the highest in the nation. Those states who have played a part in the robo-signing controversy will see the expected uptick in foreclosure activity, as the banks go back to 'business as usual' to move a large backlog of pending foreclosure filings.

Locally, markets are impacted by this activity in different ways. Some counties are in highly desirable areas, nearer to better paying jobs, and those will likely work through foreclosures much faster than less desirable areas. Within any given state, there are counties that are seeing foreclosure rates increase, while others are seeing their foreclosure numbers (finally) trending downward. Different local areas tend to be at varying places in their foreclosure cycle.

This is why it's important to look beyond the surface news reports, and understand what is going on in your little corner of the world. ***
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Donna S. Robinson is a 16 year veteran of the real estate industry and a staff writer for Realty Biz News. She is an active real estate investor who also provides coaching and consulting services to individual investors, investment companies, real estate agents and brokers. You may join her email list on her website at www.RealtyBizConsulting.com

 

Will the Humble 'HemLoft' Survive?

A tree house in Canada recently hit the headlines, as its builder finally decided to share its existence with a well-known design magazine. Whether or not this was a good idea is somewhat debatable.

The HemLoft tree house

The 'HemLoft' was built by Joel Allen, and is an intriguing egg shaped home situated in a hemlock tree. However it is illegally built, as it is constructed on Crown land in British Columbia in Canada, and in an area renowned for its expensive real estate. The actual whereabouts of the tree house is still unknown, and it even managed to evade detection during the tight security imposed during the 2010 Olympic Games, but its designer and builder is still worried that he could be forced to take it down, if it's found.

Joel originally came up with the idea for the tree house back in 2006 after he lost his job and discovered an interest in sleeping in strange outdoor places, but he didn't want a traditional design. It took several years to complete before being finally finished last August.

Apparently support for the tree house is growing within the local community in Whistler, and Joel is asking the public to vote on the fate of the project. The choices range from being able to purchase the land from the government, to opening it up to the public, to tearing it down completely. It is certainly a nice looking structure, and is in keeping with the natural surroundings, but it is difficult to imagine local government agreeing to it remaining in place'if they can find it.

Tips For Selling A Home Faster, For More Money

For home sellers, there is no time quite like the present. The majority of sellers are looking to find a buyer as fast as they possibly can, getting the best possible price in the shortest time frame they can. That's easier said than done in today's bloated, foreclosure-hit markets of course, but by paying heed to the following advice, sellers might just be able to cash in sooner than they think.

Image courtesy of sixninepixels / FreeDigitalPhotos.net

A recent piece in 24/7 Wall Street quizzed numerous real estate professionals, asking for their expert advice on what sellers can do to get a fast sale at the best possible price. Here's what they suggested:

Curb appeal is all-important

Experts remind sellers that first impressions are absolutely vital to making a sale. Numerous real estate agents agree that homes with well kept lawns and inviting exteriors nearly always sell better than those with a cluttered landscape. Quite simply, if the buyer doesn't even get their foot in the door (and they won't, if the home is ugly), how are they going to make an offer?

Price matters

Here's the conundrum ' sellers want a fast sale, but at the same time they often have to compete with dozens of other homes (including cheap foreclosures) of similar or lesser prices in their area. The key here is to listen to what your realtor says when recommending a realistic listing price. Agents will determine the best price for a home using comparable sales data of similar homes sold in the last sixty days.

Setting a realistic price from the off will avoid wasting time having to drop the asking price bit-by-bit to lure buyers in. For homes in areas where not enough comparable data exists, an appraisal may be a good idea ' the appraiser will set a realistic price that any bank will almost certainly agree to by the time a buyer is found and looks to secure financing.

Explain what 'Energy Efficiency' really means

We've all heard about 'green homes', but many of us don't really realize the financial benefits of living in one. Savings on bills can have MASSIVE appeal for prospective buyers, so sellers are advised to not just point out the energy saving features of their home ' but also detail exactly how much money they can save.

Get 'Ready'

Let's face it, the majority of buyers want a home that's ready to live in. Sure there's tons of investors out there looking to buy homes on the cheap, do them up, flog them for a profit ' but there's tons more buyers out there who prefer to move right on in and start living the dream.

As such, sellers need to make their homes spick and spam. Fix everything that needs fixing. Creaky doors, windows that don't quite shut, water stains, peeling wallpaper, missing tiles, etc, etc., these all need to be fixed asap! Things like this should be done before the home is placed on the market. Moreover, many agents believe that having a home inspection done before it gets listed is a great tactic for selling a home fast. Doing so, sellers will be able to identify any potential hurdles that could scupper a sale at the last moment.

Bank Fail to Sell Distressed Homes, Get landlord Job Instead

Banks can rent out foreclosed homes as part of an orderly strategy to unload properties, provided the properties are safe and rented under local rules and regulations as well as federal fair housing laws. Good luck with that.

Renters? Cover your assets.

© dedMazay - Fotolia.com

Banks have done a less than stellar job at handling foreclosures and REO sales. The National Mortgage Settlement says so. Now they get a landlording job? Whew!

To help manage the mountain of distressed properties and supply the market with what could be more affordable housing, the Federal Reserve issued an updated policy statement to guide banks in renting out foreclosed properties they hold.

In a six-page, April 5 policy statement, the Fed said banks must typically make efforts to actively market and sell real estate owned (REO) properties, but given the tight housing and credit markets 'banking organizations my rent residential properties (within statutory and regulatory holding-period limits) without having to demonstrate continuous active marketing of the property.'

The move is not unlike other federal agencies' efforts to turn foreclosed properties into revenue generators.

The Federal Housing Finance Agency (FHFA), in conjunction with the U.S. Department of the Treasury and U.S. Department of Housing and Urban Development (HUD), has announced a'Real Estate Owned (REO) Initiative (ROI)' to unload an estimated 200,000 REOs held by Fannie Mae, Freddie Mac (GSEs or 'Government Sponsored Enterprises') and the Federal Housing Administration (FHA).

In the 'Federal Reserve Policy Statement on Rental of Residential Other Real Estate Owned Properties' the Fed instructed banks to follow these and other guidelines:

' Use an operational framework to evaluate overall costs, benefits and risks of renting while taking into account property conditions, local market conditions for rental and owner-occupied housing, and the REO holder's capacity to 'safely and soundly' engage in rental activity.

' Consider clear and credible approaches for the ultimate disposition of the rental property, including seller-assisted financing and rent-to-own arrangements for tenants.

The Bank of America recently announced a pilot plan to allow homeowners at risk of foreclosure to hand over deeds and sign leases that will let them rent the houses back from the bank at a market rate.

' Banks that rent must do so in compliance with all applicable federal, state, and local laws and regulations, including: landlord-tenant laws; landlord licensing or registration requirements; property maintenance standards; eviction protections (such as under the Protecting Tenants at Foreclosure Act); protections under the Servicemembers Civil Relief Act; and anti-discrimination laws, including provisions of the Fair Housing Act and the Americans with Disabilities Act.

After a recent fair housing study the National Fair Housing Alliance, on April 10, filed discrimination charges over banks' handling of foreclosed properties.

' Banks must also determine if rental activities are permitted under applicable laws and review homeowner and condominium association bylaws and local zoning laws for prohibitions against property rental. Third-party property managers should come with bank oversight to be sure they comply with these federal, state, and local laws.

' Banks with large inventories of what become rental properties should have a documented rental strategy, including formal policies and procedures for rental activities, and a documented, operational framework, down to the individual property level.

Policies and procedures should describe how the bank complies with local building codes; has adequate property insurance coverage; handles property taxes and other related obligations; and makes certain expenditures on improvements are appropriate for the property and the neighborhood.

The Fed said policies and procedures should also address risk management issues related to renting residential REO properties, including credit risk associated with tenants' potential failure to make timely rent payments; vacancies, liability and the need for legal action against tenants for delinquency, including eviction.

Again, good luck with all that.

Detroit ' Just Let it Burn!

Dozens of vacant homes in Detroit have been set ablaze in recent weeks by a spate of arson attacks. In a surprising response, firefighters in the city have controversially proposed to let the homes burn rather than trying to save them, in order to save money.

Burn Detroit, Burn! © storm - Fotolia.com

Donald Austin, executive fire commissioner in Detroit, told WDIV-NBC that the proposals weren't as controversial as they first seem:

'We are in no way looking to 'let the city' burn, this is about saving lives and money. My department is strapped, the budget is strapped, and it's time to look at a new way of doing things.'

According to MSNBC, who first reported on the proposal, Austin's proposed 'new way' would quite simply involve allowing vacant properties in the city to burn down ' so long as they are at least '50% on fire and there is no risk posed to nearby buildings'.

The plan has yet to be approved by city officials, although proponents argue that the idea makes sense as many vacant buildings in the city are set to be demolished anyway ' as such, they say that letting them burn will save the city money. However, critics argue that it's irresponsible to let vacant buildings just burn for no reason, especially if they haven't yet been placed on the city's demolition list.

Detroit is suffering from a plague of vacant buildings. A new documentary about Detroit's firefighters, appropriately titled 'Burn', estimates there are as many as 80,000 vacant buildings in the city. In addition, these buildings make up 40% to 60% of fires in the city.

According to MSNBC, incidences of arson attacks in the last few years have increased dramatically. 2010 saw a total of 1,082 arson attacks ' 636 more than the previous year, according to data from the FBI.

The film 'Burn' suggests several reasons for the increased number of arson fires in Detroit, including sabotage from underwater homeowners, arson for profit (insurance), and accidental fires started by thieves stripping the buildings of materials and leaving gas lines exposed.

Brand Your Real Estate Website'.ON EVERYTHING!

As a real estate agent, you probably already know that your competition is everywhere. Depending on where you are located, there could literally be hundreds of real estate websites in your area alone that are all competing for the same leads.

Building your brand means doing anything it takes © kikkerdirk - Fotolia.com

Like you, I've seen all the staggering statistics relating to how many home buyers look online before making a single phone call to a real estate agent or agency. Whether it's that roughly 84% of all home buyers use the internet to search for a new home or that the percentage of people learning about homes for sale directly from a realtor has dwindled to below just 20%, it's becoming pretty apparent that consumers are using the internet to find everything from shoes to a brand new condo or single-family home.

So knowing that the internet is your strongest resource for finding new clients and people searching for real estate, it's imperative you go the extra mile to promote and brand your business or agent website. Just the other day, I noticed that Diane Freeman, a professional realtor in Chicago, has chosen to brand her website on various floor plans she reproduced for a particular condo building she represents.

If you visit her site, you'll notice that on the 1040 N. Lake Shore Floor Plans page, she has 6 different images displayed, all with her website address watermarked on each. Now, obviously if you're already on her site, you certainly don't need to know or remember what her web address may be. However, should she pass these floor plans out at an open house or to various clients interested in the condos at 1040 North Lake Shore Drive, her domain name will be clear and visible to everyone who obtained these images, dramatically increasing the chance she'll get the first phone call from whoever wants to move forward with a unit that's for sale.

Including your website on your business card or a mailer is a given. Every real estate agent should have enough common sense to follow these basic marketing principles. But it's the out-of-the-box ideas such the watermark on Diane's floor plans that will really pay off in terms of getting more recognition, boosting your website traffic and eventually closing more deals.

Joe Heath is a graduate of Indiana University and possesses a Graduate Certificate in Real Estate Development from Drexel University. After working in the market research sector and authoring published Market Snapshots for Hanley Wood Market Intelligence, Joe now works as a Web Marketing Specialist and co-owns Real Estate Web Creation with his partner, Ted Guarnero, a 25+ year real estate veteran.

Britons Becoming More Confident Over Housing Market

According to the latest Halifax Housing Market Confidence tracker, Britons are beginning to feel more confident over the housing market, with more than one in three predicting house prices will increase during the next twelve months. Just 20% expect house prices to fall.

Brits are showing more confidence in their homes © Dawn Hudson - Fotolia.com

The House Price Outlook balance is now at its most positive since the Halifax began this survey 12 months ago, as it had a balance of +19% in March, compared to just +7% in January. All the 11 regions surveyed saw more respondents feel positive about house price rises compared to just eight regions in January and three in October 2011. However those living in the South of England are far more positive than those living in the North, and the gap is getting wider, with a score of +26% compared to just +12% in the North. This gap has widened since January when the housing sentiment for the South was only slightly more positive than in the North.

Not surprisingly those living in London feel most optimistic about the housing market, with a positive score of +29%, while those in the North East have a score of just +6%. The numbers of those who believe it is becoming a better time to sell has improved reducing from -64% in January to -38% in March. However just 24% think it's a good time to sell , compared to 55% who think it would be a good time to buy, but 61% are still concerned about job security, while 45% are worried over being able to raise a big enough deposit. Another 25% thought mortgage constraints were a major obstacle to purchasing, while 27% were concerned about being able to afford mortgage repayments.

With 71% predicting rents will continue to increase over the next twelve months, it could be that those who can afford to buy, and who are able to qualify for a mortgage will be keen to do so sooner rather than later.

Three Homes that Defy the Laws of Gravity

Most probably, you believe that Isaac Newtown's law of gravity is an irrefutable truth ' whatever goes up, simply must come down at some point right? Probably so, but while the laws of physics cannot be denied forever, we can always put them off for a few years, just as these rather precarious looking homes will demonstrate'

The Floating Castle, O'deska Oblast, Ukraine

Image courtesy Cyrill via Panoramio

This mysterious, levitating farmhouse in the middle of the Ukraine quite simply defies the laws of physics. Supported by a lone cantilever, this unique specimen wouldn't look out of place in a sci-fi flick, yet there it is, standing tall and proud in the middle of some god-forsaken Ukrainian field.

Apparently, this 'floating castle' is supposed to be an old storage facility of some sort. Or at least, that's what they'd like you to believe. We're sure that alien architects were involved somewhere along the line'

Wozoco Apartments, Amsterdam, Netherlands

Image courtesy yellow book via Flickr

Wozoco Apartments death-defying profile is the result of numerous obstacles faced by the architects during its construction. Zoning laws in the Netherlands limit the number of apartments per block to 87 units, and each tenant was promised good natural lighting.

However, the client insisted on having 100 units per block. It was clear that creating 13 more units per block would necessitate including another floor, which would further limit the green common space, yet another attitude the client wanted to fight. So the 13 additional units were suspended from the side of the main structure, added onto its northern façade. The ingenious design means that not only does the building save on floor space, but an appropriate amount of sunlight can enter the building, east or west of the façade.

Takasugi-an, Nagano, Japan

Image courtesy mab-ken via Flickr

The Takasugi-an tea house is normal in many ways ' Terunobu Fujimori's design lives up to the best of Japanese traditions as far as tranquility and simplicity go. It's certainly a great spot in which to sit undisturbed and contemplate' well, until it falls out of the tree at any rate!

The name of the tea house, which Fujimori designed and built himself, translates into English as 'a tea house too high', and he wasn't far off in his assessment. The house sits precariously on tall stilts, which sway with the wind, giving the home the appearance of some surreal Dali painting. However, Fujimori assures visitors that the home is perfectly balanced upon the two chestnut tree trunks which he cut down and transported here especially for the purpose.

Long & Foster's Yardley Office See Sales, Prices Up

Long & Foster

Long & Foster's Yardley sales office in Philadelphia is already enjoying a great start to the year, with sales volumes up by 3% and the average sales price increased by 4% in March.

Manager, Marianne Dillon said 'It's always a good sign when you can see tangible evidence of increased sales activity. Open houses are very active and well attended, contracts are being written, and we're looking forward to a good year.'

Gary Scott, president of Long & Foster Real Estate Inc., said 'This type of activity shows that our sales associates are proactive and positive in today's housing market. For buyers and sellers looking to accomplish their home-ownership goals, the Yardley professionals are well-equipped to help consumers identify opportunities in today's market.'

Long & Foster Real Estate Inc., is the largest independent residential real estate company in the United States. The company is part of The Long & Foster Companies, which includes the Prosperity Mortgage Company, the Walker Jackson Mortgage Corporation, the Long & Foster Insurance Agency, Inc., and the Long & Foster Settlement Services.

Long & Foster Real Estate In., represents more than 12,000 agents in seven mid-Atlantic states, plus the District of Columbia. In 2010 the company sold more than $24 billion worth of homes, helping 72,000 people buy and sell real estate.

An Unexpected Benefit of Lower Housing Prices

© iQoncept - Fotolia.com

Low, and/or declining property values in many areas across the country have created a kind of investor's nirvana, where previously untouchable property suddenly comes within reach.

Investors, however, are not the only ones buying up properties these days. Better Homes and Gardens Real Estate conducted a survey recently which determined that one out of five baby-boomer couples have helped their children to secure a home of their own, either by buying it for them,  assisting with the down payment or co-signing on the mortgage.

John Boschen, professor of economics and finance at the College of William and Mary's Mason School of Business credited, among other things, low interest rates and housing prices with the trend.

'The parents-(or family)-helping-kids-buy-a-house phenomenon has long been prevalent in other countries, especially in developing countries,' said Boschen.

'This traditionally has been because there is no access to long-term home loans that feature low down payments in these countries. In other words, the credit markets there don't work to extend credit to younger people against their future income as in the U.S.'

Boschen also noted that tightened lending standards, such as requiring a larger down payment, are contributing to this trend as well.

David Wilkey, chairman of the Hampton Roads Realtor Association and managing broker with Rose & Womble Realty's Chesapeake office, is familiar with down payment gifts, however he has recently witnessed something that he hadn't seen in his 20+ years of doing business ' 2 different individuals who bought their family member a home outright.

One of them was a father who bought the home for his son and the other was a grandfather who purchased property for his granddaughter and her family.  'I was told, first of all,' said Wilkey, '[that] she wouldn't have qualified.'  Wilkey noted that the grandfather also wanted her to be in a neighborhood where she could feel safe.

Until market conditions change drastically, this trend may grow even more prevalent. What about you? Have you assisted your child(ren) with their home purchase or are you the recipient of your family's generosity? If you're a realtor, have you seen an increase in this kind of activity?

Canada's Home Capital Group Taking Customers from Banks

Home Capital Group

The Home Capital Group is taking business from larger Canadian lenders including Toronto Dominion Bank and the Canadian Imperial Bank of Commerce, as these lenders are backing away from the non-prime mortgage market that's currently worth in excess $200 billion.

Since the Bank of Canada governor, Bob Carney, warned household debt is reaching record levels, banks have become much more cautious over taking on additional debt, especially as Carney has indicated interest rate rises would help cool off a housing market that has seen prices rise spectacularly over the last decade. Prices in some cities have nearly tripled during the last ten years. But it is almost inevitable that interest rates will begin to rise, and they could increase as soon as next year.

Toronto-based Home Capital has been targeting those borrowers who fail to qualify for mortgage loans with the large lenders. These include the self-employed and recent immigrants to the country who haven't had time to build up a credit history. These borrowers are not necessarily a huge risk, as many have good incomes but just have circumstances that are a little different from the norm.

Even as banks begin to scale back on lending, there are signs the housing market is beginning to cool, as prices fell by 1.7% in March compared to February, with prices in Vancouver falling by 3.1%. The Finance Minister, Jim Flaherty sees this price correction as being a good thing, as it is preferable for the market to correct itself without government intervention.

At the end of March TD Bank stopped issuing non-prime residential mortgages, but these mortgages only represented a tiny 0.2% of the bank's mortgage portfolio. Apparently the bank took this decision as they didn't wish to increase their risk profile. This is obviously good news for lenders such as Home Capital, and the company has already had a very good first quarter.

How Siri Finds Real Estate Agents

Have you seen the new television commercial that displays Samuel L. Jackson commanding his iPhone to find a grocery store that carries organic mushrooms, or asks it how many ounces are in a cup? The ad itself is fairly entertaining and in case you aren't totally up to speed with the latest mobile trends, the iPhone application he's using to find the answers to all his questions is called Siri, and there's little she doesn't know or can't tell you.

Can YOU be found using Siri?

In fact, along with finding us basic food measurements and local businesses, Siri can also help find us locate people as well. No, I'm not saying an iPhone app is able to pinpoint someone's exact location at any given time, but if I happen to be searching for a local real estate agent for example, she's certainly capable of finding some us some quality options.

And just how does she do this, you ask? Well, to the delight (or disappointment) of many Realtors, Siri will actually gather her list of suggestions from social websites, such as Yelp, that allow users to leave reviews and feedback. The process is actually quite simple. The more positive reviews you have, the more likely Siri will respond to a command with your name or real estate brokerage. Similarly, should you happen to have a high volume of negative reviews attached to your real estate business, Siri will skip right over you and move on to the next agent with better feedback.

While this may not be the most accurate way to find a good real estate agent, it does at least eliminate total randomness. So if you're an agent who has yet to embrace social media, it might be a good time to create a Yelp account and start asking your clients to provide some positive reviews in your direction. The odds you may actually get a phone call from a Siri-referred client may be slim, but as with anything in the real estate business, it's a numbers game. The more cards you have stacked in your favor, the more homes you're ultimately going to sell.

Joe Heath is a graduate of Indiana University and possesses a Graduate Certificate in Real Estate Development from Drexel University. After working in the market research sector and authoring published Market Snapshots for Hanley Wood Market Intelligence, Joe now works as a Web Marketing Specialist and co-owns Real Estate Web Creation with his partner, Ted Guarnero, a 25+ year real estate veteran.

Property Damage For Delinquent Homeowners ' Another Bureaucracy To Face

If you are a homeowner struggling to keep your home, and experiencing the frustrations of dealing with a giant bank or government bureaucracy, storm damage to your home can take things to a whole new level.

Storm damage is really NOT good news for delinquent homeowners © Eléonore H - Fotolia.com

These days mortgage companies are guarding the insurance money carefully. When a borrower is delinquent on their mortgage, and then a tornado hits their house, the claim check for the damage will not be paid to the homeowner. The checks are arriving made payable to the the homeowner and their lender. That's right, if you are behind on your mortgage, and you get hit by a tornado, you may spend weeks trying to figure out where to send the insurance check so that the roofer can be paid.

Lenders facing huge numbers of borrowers abandoning their homes are especially worried about borrowers who are behind on the mortgage payments when a storm comes along and blows the roof off. Fearing that borrowers may be tempted to 'take the insurance money and run' the lenders are requiring insurance companies to make the checks payable to both the home owner and the mortgage company.

That would be fine except for one thing. The mortgage company does not automatically provide any information to a borrower on how to go about cashing those checks. You do receive a nice letter from the insurer, explaining why the check is made out to you and your lender, but the home owner is left to run-the-gauntlet to try and figure out just what has to be done to get these checks processed.

In a continuation of the saga I detailed in a previous article, the delinquent borrower was also hit with a tornado, just as he was in the midst of a fight to keep his home. Thus began another fight to determine where the heck to send these insurance checks to, and what documents would be required in order to accomplish this task.

Turns out this was about as bad as fighting the foreclosure. We dialed a phone number given for what was supposed to be the 'Disaster Assistance Team'. The first phone number, on the bank website, was another customer service number, where the job is to make sure you don't get to anyone who can actually help you, without spending 15 minutes verifying all of your personal information and being asked if you'd like to make a payment on the mortgage. Only then did someone tell me that this was not the Disaster Assistance Team, but I needed to call another number. So I did.

This number appeared to be the correct one. We were advised that we had to complete a package of forms, and that we needed to request the package be sent to us. We were instructed to allow 10 days for delivery of the forms package. 10 days later, nothing. We called on the 10th day to ask for another package. Our second call to the second number. We were advised that we had not waited the full 1o days, and that nothing would be done until 10 days had passed.

On day 14, we called again, and this time the agent tried to email a package of forms. No email. Nothing. So, she requested that another package be sent out in the mail. Another week goes by, no package. Nothing ever arrived. Finally, I call them back. I get someone who says I can fax in the insurance adjuster's docs, the roofing company estimate and check copies to the Property Loss Division. She says 'wait 3 days and call this number ' she gave me a third number. She seemed really knowledgable, and at least we were getting somewhere.

I faxed the documents to the number she gave me, and called the Property Loss Division three days later. I get a voice message that says 'Please enter your loan number'. So I entered the loan number. The voice comes back on and says 'I'm sorry, you've entered incorrectly, please enter your loan number'. So I entered it again. Still the same message telling me that I was entering incorrect information, when I knew this was the correct loan number. I went through this circle 5 times before giving up. Very frustrating. So I figured maybe they did not have those docs in the system yet, and waited another day. It was April 19th, and we'd had those insurance checks in hand for 4 weeks.

The next day, April 20th, I called the property loss division again, and got the same message about 'entering the wrong information'. Finally, after about 5 times, it gave me an option to refer to an operator. I got Jessica on the phone. Fortunately for my sanity, Jessica knew what to do. In less than 5 minutes Jessica had directed me to a secret website where all of the forms and instructions were located for processing property loss claims. But clearly this website is a secret, because no one had any idea it existed but Jessica. Within minutes I had downloaded the entire forms package I needed to get those insurance checks processed so that the roofing company could be paid.

But not before we had to track down the roofing company, out in the field, to have them provide all of the documents required of them. There was a final estimate with the work to be done,  a certificate of completion, and Certification of Lien Waver and a W-9 tax ID form, needed from the roofers.

The borrower had to provide several forms as well. But at least we finally found someone who actually knew what forms were needed, and where they could be found.

By the time we got the forms, 7 weeks had passed since the storm. We had spoken with people in 3 different states, at 3 different phone numbers, and had been given two different mailing addresses in two different states, just trying to find out how to deposit insurance checks. For some, strategic default probably seems like a decision made to save your sanity.
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Donna S. Robinson is a 16 year veteran of the real estate industry, and a staff writer for Realty Biz News. Her website is www.RealtyBizConsulting.com   She provides coaching and consulting services to real estate investors as well as residential market analysis. She may be contacted at 888-915-9968

 

Philadelphia Gets Gay-Friendly Public Housing

Philadelphia is set to become the first US city to offer publically-funded, gay-friendly housing to its citizens after it revealed plans to break ground on the first development of its kind this fall.

Artists impress of William Way Senior Residences, the first publicly funded gay housing development

According to AOL News, who first broke the story, the new development comes in response to increased demand for affordable homes among gay, lesbian, bisexual and transgender members of the community, where they can live freely from any kind of discrimination.

Technically of course, it is illegal to base eligibility for affordable housing on an individual's sexual orientation, but city authorities plan to attract members of the LGBT community through a careful choice of location and special marketing campaign.

Philadelphia isn't the first city to offer affordable homes to the LGBT community ' a similar housing complex already exists in Los Angeles, while San Francisco and Chicago are currently planning their own. However, the gay-friendly housing complex in Philadelphia, called William Way Senior Residences, will be the first to be funded entirely from public sources, in the form of various government awards and grants.

So far, the Pennsylvania Housing Finance Agency has committed $19 million towards the project's construction ' $11 million in the form of tax credits awarded to the Dr. Magnus Hirschfield Fund, and a further $8 million from grants.

The gay-friendly housing development marks the culmination of a decade-long campaign in Philadelphia. Mark Segal, publisher of Philadelphia Gay News, told AOL News that he had lobbied city authorities for 10 years in order to see the development given the go ahead.

Segal explained that lesbian and gay seniors are deserving of the accommodation as many of them lack the same kind of support that 'straight' seniors have.

'Most of them were in the closet most of their lives. They don't have the same support systems that other seniors would have,' revealed Segal.

Record Number of Short Sales Expected

The number of short sales has shot through the roof in 2012, and if things continue the way they are going ' as expected ' we could see a new record set by the end of the year.

Short sale numbers growing fast © Andy Dean - Fotolia.com

A new report from RealtyTrac, published in CCN Money, explains that banks are now seeing short sales as a far more attractive option when it comes to their defaulting homeowner clients, as the costs of filing a foreclosure begins to add up.

Not only are banks pushing short sales ahead of foreclosures these days, but they are also trying to speed up the approval process of these. Up until now, short sales have often been viewed as being lengthy and drawn out when compared to foreclosures.

RealtyTrac reports that short sales have jumped by 33% over the last 12 months up until January 2012. Altogether, thirty two states saw short sales grow year-on-year.

Meanwhile, January housing data from Lender Processing Services Inc., shows that short sales made up 23.9% of all housing sales during that month ' foreclosures in the meantime made up just 19.7% of transactions. This is the first time that the number of short sales has exceeded that of foreclosures.

Daren Blomquist, Vice President at RealtyTrac, said 'We believe that 2012 could be a record year for short sales.'

Incidences of short sales are set to increase even more this summer as the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, outlined new guidelines in order to speed up the short sale process. Under the new guidelines, which come into effect on June 1, mortgage servicers will now have just 30 days to respond to a short sale request. In addition, mortgage servicers will have to make a final decision regarding any short sale offer in just 60 days.

Fears Remain over Toronto Real Estate Market

Trump International Tower in Toronto. Image by wyliepoon

Donald Trump was recently in Toronto to try to stir up interest in unsold units in the Trump International Hotel & Tower amid talks of the Toronto real estate market becoming increasingly overheated. Toronto has the distinction of having more condos currently under construction than any other North American city.

The Trump International Hotel & Tower has been open since the end of January, and is the tallest residential building in the city. There is little risk of Donald Trump losing any money, as he's not responsible for developing the tower, and doesn't own it. This might be just as well as it has to compete against a considerable number of other luxury developments in the city which include the Ritz-Carlton and the Four Seasons, both of whom have a mix of hotel suites and condos. The Trump property is owned and developed by Talon International Inc., who is using the Trump name under license.

Apparently Mr Trump is very happy with occupancy rates, especially on weekdays, and the Mayor of Toronto recently told reporters that hotels in the city are seeing record business. Last year the number of hotel rooms nights sold exceeded 9 million for the first time.

The Trump Tower, which is right in the heart of the financial district, was officially declared open on Monday, and at the moment around 60% of the residential units have been sold, with remaining units priced between $2.3 million and $6.3 million. About 80% of all the units in the building have already been sold, but just 35% have been bought by Canadians increasing fears that foreign buyers are influencing property prices in the city. The building is 65 storeys high and has 261 hotel condos, and owners are able to use the rooms while in the city, but receive revenue when they are rented out through the hotel.

According to BMO Nesbitt Burns, real estate prices in Toronto have risen by an amazing 10.5% during the past 12 months, attracting the attention of both the central bank and the federal government.

Time To Buy Houses ' 3 Reasons Why 2012 Is THE Bottom

It's time to officially declare a real estate price bottom. And yes, prices could erode further in the hardest hit markets ' At least statistically ' but remember, the lower they've gone, the more likely they are to rebound with gusto.

It's official - Now is the time to buy! © Patryk Kosmider - Fotolia.com

 

Market fundamentals usually develop so that the market with the lowest prices now will tend to rebound with more 'bounce' over time. This means that the hardest hit markets, still highly desirable locations in the sunbelt, will yield much better equity over time. The stronger areas, which have sustained higher prices per square foot, will not be as volatile to the 'up-side' as these areas that were over-built and over-invested.

The one reason I am confident in declaring an official market bottom is because in many areas where the foreclosure crisis has been intense, it's now cheaper to buy a foreclosure than it was to build the same home originally.

Fundamentally, a residential property 'hits bottom' when the selling price is lower than the cost to build originally.  Generally speaking, that's about as good of a deal as you can get. And when you are talking about nice homes, it's even better.

Shelter is an essential part of human existence. This fundamental fact helps to insure that there will always be a demand for shelter. As long as there is enough demand, the value of homes will not go below the affordable level for that particular area.

I'm in Atlanta, Georgia. We're the most depressed housing market in the U.S., according to the Case-Schiller index. And we've got neighborhoods here that are selling at 30% of their original value, even in move-in condition. This used to be the exclusive territory of old junkers and fixer-uppers in the inner city. Today it's homes in the burbs that are 10 years old or less.

When you start buying homes with 1596 square feet of living space, plus a 1596 square foot basement, 3 quarter acre lot with fenced-in backyard, for $40,000 you are talking about buying the home for $25.06 per square foot '  less than it cost to build it originally. It sold new in 2001, for $115,500, or about $72 per square foot.

Once you reach this level, demand will naturally rise. Fundamentally the property begins to become viable again, as either a rental property, or an owner-occupied home. The key is legitimate demand from a real end user, not a speculator who needs to resell. (Demand from end-user buyers must be real to sustain prices at any level).

You can't even get a typical mortgage for a property that is this cheap. Most lenders don't go below $50,000. Today we have almost-new houses, in excellent condition, selling for 1/2 of what it cost to build them.

Reason number two for calling a bottom: Prices are finally so low, that cash flowing for rental is viable again as a real estate investing and retirement strategy.

The housing market boom ran prices up so much that landlords found their ownership costs often outstripping their cash flow from rentals. In other words, they could not raise the rent high enough to support the higher property prices, so rental property stopped cash flowing, and by 2005 landlords were starting to go into foreclosure.

The landlords in boom cities were at the front of the wave of what would become a tsunami of foreclosures, as buy prices exceeded the ability to increase rental rates.  They found themselves with properties that either would not rent for enough to cover their PITI, or they could not find a tenant at all.

By 2006 there were so many investors with section 8 rental properties, the supply actually exceeded the demand in many markets, and those markets ' places like Atlanta, Las Vegas, Miami, and Phoenix, started to stall out.

But today, the low selling prices for foreclosures have gotten rid of the worries over cash flow. Most of the houses that can be bought for $40,000 can be rented for $850 to $900 on the open market. Section 8 pays even more. In 2012, the rental property market is 'cooking with gas', with positive cash flow at the best levels we've seen in many years.

Reason number three for calling a bottom: The ability to generate equity on day one. When buy prices are low, there are a variety of benefits to the owner. Another great benefit of low cost foreclosures is instant equity. 

Equity is the difference between what you owe on your mortgage, and the total market value of the property. Just taking a foreclosure and putting it back into service will add instant equity. Foreclosure takes a property and makes it 'distressed' even if that property is in very good condition. Buying foreclosures for $30,000, that cost $60,000 to build, generally will guarantee you some instant equity, simply by putting the property back into service. If repair costs are minimal, and you are buying at 30 cents on the dollar, you've got one heck of a deal that virtually did not exist prior to the 2008 market collapse.

Buying now will lead to instant equity © frenta - Fotolia.com

 

Here's the bottom line: If you are a smart home buyer or real estate investor, this market is what you've been waiting for.

With Wall Street 'gangs' getting into the rental property market, it's just a matter of time before the fundamentals swing back to favor rising prices. Once the initial market glut has been bought up, prices will begin to rise slowly. If interest rates go up, as they most probably will at some point in time, you'll look like a genius if you've got a portfolio of houses bought for 30 cents on the dollar, financed at 4%, and rented for $850 a month.

I have an investor friend who tells me that they are bulldozing houses in a few areas in California. Those locations are the farthest out, and there was never any real demand from end users like landlords or owner-occupants. It was false demand caused by rampant speculation and over building. Location is still a fundamental issue that carries a lot of weight. Areas with no buyer demand, and no occupants have no value. Houses only have value where there is real demand. Don't ignore this basic market fundamental. And that being said'.

Most people don't realize it, but today's housing market is a beautiful oasis of opportunity that will dry up and disappear in years to come. Investor activity is already reaching a fever pitch. If the economy does improve, and we see real job growth, this market could start going up a bit by 2013.  All things considered, things probably won't get much better than they are today, where real estate investing is concerned. ***
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Donna Robinson is a 16 year veteran of the real estate industry and a staff writer for Realty Biz News. She is an active real estate investor who also provides coaching and consulting services to individual investors, investment companies, real estate agents and brokers.  Get her free newsletter on her website, www.RealtyBizConsulting.com 

Facebook Frequency for Realtors

One of the first questions I get asked when consulting a real estate agent on social media is how often should they post something to their accounts. While there is no exact methodology you should following when posting information or updating your status on Facebook or Twitter, you should always be careful not to cross the line from real estate marketing to real estate spamming.

Facebook for realtors © Ogerepus - Fotolia.com

If you've had a Facebook account for any length of time, you probably follow a business page or even have a 'friend' who is CONSTANTLY posting new status updates, information, or links to something else online. I know for me, I can name several businesses I happen to follow that typically share between 5 and 20 posts per day, which can obviously be a bit overwhelming.

Sure, you can get quite a bit of housing information out to your social media followers by posting web links, home listings, or updates regarding your local real estate market, but here is the problem with over-posting and over-sharing content via social media: either people will stop following you or they keep following you, but eventually scan right over your posts because they've simply lost interest in what you have to say.

If you analyze your Facebook business page statistics and you follow the unnecessary trend of providing people with a status update every hour, you may not see a steady drop in page views or followers right away; but if you continue to over-use your account and begin to spam your follower's accounts, it will surely happen sooner rather than later.

A good rule-of-thumb is to stay relevant to your followers without overloading them with information they don't need and don't care about. What this exactly means in terms of how often you should post an update to Facebook or Twitter is up to you. If you have some interesting information regarding a price drop of a listing or if you took on a listing that just came onto the real estate market, you should without a doubt share these nuggets with your followers and potential home buyers. However, if you're thinking of posting a status update that's in the nature of 'Off to show 2692 North Clark Street,' I think this fits perfectly under the category of 'unnecessary.'

Joe Heath is a graduate of Indiana University and possesses a Graduate Certificate in Real Estate Development from Drexel University. After working in the market research sector and authoring published Market Snapshots for Hanley Wood Market Intelligence, Joe now works as a Web Marketing Specialist and co-owns Real Estate Web Creation with his partner, Ted Guarnero, a 25+ year real estate veteran.

Timeshare Market Heating up with Sales, Reselling Scams

Timeshares' tiny $5 billion slice of the real estate pie is poised to grow even bigger with its increasing sales and timeshare rats are scurrying out of the woodwork to take a bite.

Pasquale Pappalardo and his wife, Lisa Tumminia-Pappalardo, among others, agreed to settlements with the Federal Trade Commission (FTC) that permanently ban them from telemarketing and engaging in timeshare resale services.

Timeshare markets heating up

The ban also comes with a $5.4 million judgment against the two and the south Florida-based Timeshare Mega Media and Marketing Group, Inc. after the operation netted $2.7 million in 20 months by defrauding thousands of consumers to the tune of about $2,000 each.

The operation charged consumers an up-front fee, allegedly a refundable amount toward the sale of a timeshare. Instead, clients received a contract to market and advertise their timeshare, which they mistakenly signed thinking it was a sales contract.

The company never had timeshare buyers lined up, never assisted anyone selling a timeshare and refused to refund money, before the FTC stepped in.

Bracing for more of the same, the FTC has updated a consumer alert, 'Selling a Timeshare Through a Reseller: Contract Caveats.'

Initial timeshare sales are typically regulated through the real estate regulator in the state where the timeshare property is located.

A timeshare purchase is a purchase of an interval of time at a furnished resort, for an average of about $19,300, according to the American Resort Development Association (ARDA). Intervals are usually one week, but can be longer with 'fractional' timeshares. Buyers also pay an annual maintenance and management fee (averaging $731) and may have access to an exchange service that allows them to trade times and places.

When it comes time to dump a timeshare, however, resales generally are not regulated.

This March, in Florida, home of one in four of all U.S. timeshares, Sunshine State legislators passed into law the 'Timeshare Resale Accountability Act' to head off more fraud in the resale sector.

Also, last year, the ARDA launched the online 'Timeshare Resale Resource Center' ahead of expected growth in sales this year.

The $4.63 billion in timeshare sales in 2010 was up 1.1 percent from 2009, according to ARDA, a far cry from the high of more than $10 billion in sales in 2007, but more growth is expected, according to ARDA.

The FTC said consumers looking to cash in on the growing market and resell their timeshare should question resellers ' real estate brokers and agents who specialize in reselling timeshares.

Don't assume you'll recoup your purchase price for your timeshare, especially if you've owned it for less than five years and the location is less than well-known. To determine value, use a timeshare appraisal service licensed in the state where the service is located. Check the license with the state real estate regulator.

Beware of claims your timeshare market is 'hot' with buyer demand, claims buyers are available and ready to buy and promises to sell your timeshare within a specific time.

The market is growing, but like the rest of the real estate market, it's growing slowly and the target of scam artists.

The FTC also advises:

' Get everything in writing ' the reseller's marketing plan, plans to use a progress report, fees, refund policies, etc.

' Don't agree to anything on the phone, online or otherwise until you've had a chance to check out the reseller. Contact the Better Business Bureau, your state Attorney General and local consumer protection agencies. Determine if any complaints are on file.

' Ask if the reseller's agents are licensed to sell real estate where your timeshare is located. Verify their license with the state real estate regulator. Work only with licensed real estate brokers and agents. Seek references from family members, relatives, friends, co-workers or others you trust.

' Consider doing business with a reseller who takes his or her cut after your timeshare is sold. If you must pay a fee in advance, ask about refunds. Get refund policies and promises in writing.

' Before you sign on the dotted line of a reseller's contract, get the details of all terms and conditions. It should include the services the reseller will perform; the fees, commissions, and other costs you must pay and when; whether you can rent or sell the timeshare on your own at the same time the reseller is trying to sell your unit; the length or term of the contract to sell your timeshare; and who is responsible for documenting and closing the sale.

Never sign a contract with blank spaces or a contract that doesn't include the terms and conditions you desire. Shop around for other resellers.

'Storm Chaser' Contractors Target Desperate Homeowners

When a powerful storm or a vicious tornado tears the house down, homeowners are often left out in the cold, forced to try and pick up the pieces and get their homes in order again. Even worse, it now appears that some storm victims are being ripped off by contractors overcharging them for unnecessary repairs.

Storm chasers attempt to rip off homeowners by moving quickly after a storm © Malchev - Fotolia.com

The USA Today reported that legislators and insurance firms are warning homeowners to be wary of any contractor that tries to pressure them into signing an expensive contract for repairs on their home following a storm.

The contractors have been dubbed 'Storm Chasers', who typically seek out homeowners immediately following a storm, knocking on their doors and trying to persuade them to sign a contract for storm damage repairs ' repair work that is in many cases, not needed.

In response, a number have states have already passed or are considering new legislation to protect homeowners from 'storm chasers' following a storm. Iowa is one state that is leading the way, with legislators proposing a bill that, according to USA Today:

'Would void repair contracts signed when the contractor represents himself as working for an insurance company, promises to rebate a deductible, or fails to give customers a disclosure about how to cancel the contract.'

In addition, Iowa legislators have added a provision in the bill that allows the state to prosecute such scammers under consumer fraud laws. Elsewhere, Illinois, Minnesota, Missouri, Nebraska and South Dakota have all passed similar legislation to prevent contractors from taking advantage of homeowners.

The contractors will try to persuade homeowners to agree to repairs they don't actually need © Friday - Fotolia.com

Bill Good, Vice President of the National Roofing Contractors Association, told USA today that while most contractors were trustworthy, there will always be a few bad eggs out to scam homeowners:

'There are some very good contractors who set up their businesses to be able to respond to storms, but there are good ways to do it and bad ways to do it.'

Good advises homeowners that they can reduce the likelihood of being scammed by taking appropriate precautions when dealing with contractors immediately after a storm. He says that homeowners should ensure the contractor is licensed to operate in the state, and they should refrain from signing any documents which give the contractor authorization to negotiate with their insurers.

Condos Seen As More Affordable Option in Vancouver, Canada

According to the annual TD Canada Trust Condo Poll, those wishing to live in Vancouver, one of Canada's most expensive real estate markets, are choosing to buy condos. Nearly two thirds (62%) say their main reason for purchasing a condo is that it's more affordable than a house. Around 34% believe owning a condo is cheaper than renting.

Vancouver condos gain popularity © Steve Rosset - Fotolia.com

The TD Canada Trust Condo Poll surveyed Vancouver residents who had recently bought, or who intended to buy a condo. More than a third feel owning is cheaper than renting, but 28% of those living in Vancouver condos save their monthly strata fees make it feel as if they are still paying rent. This proportion is busy saving up to buy a home where they don't have too a set monthly maintenance fees.

Brett Currah, District Vice President, TD Canada Trust says that 'Purchasing a condo allows you to build equity rather than continuing to pay rent as you save for a house. At the same time, determining what makes the most sense financially is not just a straight comparison of your monthly rent and some utilities to a monthly mortgage payment and condo fees, so it's important you talk to a mortgage expert before making the decision to buy a condo.'

The poll found most Vancouverites were well aware condo fees can increase at any time, with 28% saying they already have a buffer built into their current budget, while another 36% say they can cut back in other areas should strata fees increase. This is probably just as well, as new regulations announced in 2011 under the Strata Property Act will impact depreciation reports and contingency reserve funds.

There's a chance some corporations may need to contribute more to their contingency reserve fund to better manage the future maintenance of common property, resulting in higher strata fees for residents. Anyone considering buying a condo needs to take this into account when budgeting, especially if they're buying a strata unit that is older, or which currently has quite low fees.

Currah went on to say, 'The possibility of a fee increase can be a little unnerving. While there is no way to 'lock in' to a monthly fee like you can with a mortgage, you can prepare for a fee increase by building a buffer into your monthly housing budget. That way if fees go up, it won't be a major shock to your cash flow. If they don't increase, you have extra money to put aside in savings or towards your mortgage.'

According to the poll, features buyers consider to be important when looking for a condo include good building security, and attractive interior design, energy efficient building features, and a balcony.

Most potential purchasers are not put off by recent forecasts that an oversupply of condos could cause a drop in prices.