Hi everyone:

I just came across an excellent resource for mortgage rate, interest rate, insurance rate and credit card rate information.  Check out the blog at ratesupermarket.ca

This site features input by some very impressive contributors.  While NO ONE can predict interest rates with 100% accuracy, being able to draw on the experience of some of the countries top mortgage experts gives ratesupermarket a nice advantage in this effort.

The site blog includes categories such as Mortgage Tips, Housing Market, Real Estate and dozens of others.

This month’s Mortgage Rate Outlook predicts that fixed rates are expected to remain the same, ‘with downward bias’,  and variable rates are also expected to remain the same.

This continues to be an excellent time to purchase a house or condo in Winnipeg.  Inventory levels are up slightly, and due to summer vacations, buyer activity is down a little, meaning that your chances of finding and actually getting a house are increased.

If you’re looking to purchase a home (house or condo) in Winnipeg, please call me anytime.  Bo 204-333-2202

Hi Everyone:

I wanted to send out a quick report on the condominium situation in the south end of St Vital.  I had recently noticed that there is a shortage of good quality condo listings in the south end Winnipeg neighbourhood, a factor which helped on of my recent listings sell for significantly over the asking-price. For a look at the overall market report, go to Winnipeg Market Report for September 2010 video.

Currently, in the south St Vital area, there are only 14 condominiums listed for sale, ranging in price from the low end of 575 sq-ft condo on Arden at $119,900 to a high-end, 1515 sq ft luxury condo at The Waterfront for $450,000.

During the month of June 2010, this same area saw a total of 19 condos sold, ranging in price from $117,000 to a high of $356,000.  Of these, 8 condos sold ABOVE list price, 7 sold BELOW list, and 4 sold AT LIST.  June was considered a very busy month for real estate in Winnipeg.

During July 2010, a total of only 10 condominiums were sold in this area, ranging in price from $145,000 to $400,000.  Of those, 4 condos sold ABOVE list, and 6 sold BELOW list.

While ‘multiple offers’ are more rare in condominiums, our current shortage of listings is helping to create a situation where sellers can expect good activity on their condos, listed on the MLS® by REALTORS®.  As well, a slow down in the market activity is to be expected in the summer months, as condo buyers take vacations, just as house buyers tend to do.  I would expect the market to pick up once again, after the September long weekend.

If you’re looking to sell your condo, in St. Vital or other areas of Winnipeg, please call me anytime for a realistic and complimentary market evaluation, and a look at my Customized Marketing Plan for your Condo.

Bo  333-2202

Hello Everyone:

I just wanted to give you a quick look at the real estate market in one of Winnipeg’s upscale neighbourhoods:  Lindenwoods and Linden Ridge.

Currently, there are only 12 homes for sale in this prestigious area, ranging in price from $359,900 to $874,900.  in the past 31 days, 10 homes have sold here, ranging from $365,500 to $820,000 in price.

Looking back to the month of June 2010, there were 18 homes sold in Lindenwoods-Linden Ridge, ranging from $319,900 to $625,000.  Of those, 6 sold ABOVE list, 6 sold BELOW list and 6 sold AT LIST price.

During the month of July 2010, we saw 21 homes sold, ranging from $320,000 to $820,000 in price.  Of those, 16 sold BELOW list price while 5 sold ABOVE list price, although in most cases, the difference was small.

As expected, during the July (and probably for August as well), bidding wars do slow down.  Savvy real estate agents take this into account when setting the list price of the home, as they can no longer count on ‘multiple offers’, and are well advised to set a more realistic asking-price for the home.

If you are looking to buy a home or condo in Winnipeg, please call me for a copy of my Home-Buying Guide, explaining the process of finding, offering on, and getting a home in Winnipeg.

If you are thinking of SELLING your Winnipeg home or condo, call me for a straight forward, realistic market evaluation and a look at my Customized Marketing Plan for your home.

Bo  333-2202

Hi everyone:

I’m happy to report that my listing at 201 Horton Ave W in Transcona has sold.  This was a wonderfully updated and cared-for home.  Thank you to all agents who showed it, and a big congratulations to the lucky buyer who purchased this home.

If you’re thinking of buying or selling a house, or a condo, please call me anytime…..  Bo  333-2202

Hi everyone:

My buyer just bought this lovely side-by-side home at 1035 Buchanan Blvd.

If you’re looking to buy (or sell) a home in Winnipeg, please call me anytime, I love to help!  Bo  333-2202

Here are some of the most common questions Home-Buyers have:

Q: Whats the best way to FIND a house in Winnipeg? Go to Open Houses? Looking thru real estate magazines? Search individual agents websites?

A: Magazines are often published once a month, or perhaps once a week. By the time a listing makes it into print, it’s most often already sold or accepting offers. Open Houses can be very hectic, and you end up ‘rubbing elbows’ with lots of other visitors. The Best Way? Work with one REALTOR® who can show you ALL the listings. Someone like, say, me for example. Watch this video.

Q: Why should I work with a REALTOR®. I can find the houses on my own!

A: FINDING them is just a small part of what real estate agents can do for you. Once you find a nice house, I can help you evaluate it, offer advice on how to structure your offer to make it more acceptable (thereby winning any possible bidding war), and I can even help you get pre-approved by a great lender. Please watch this video.

Q: My checking account is with a bank. Can’t I just go there to be pre-approved?

A: In this fast market, every buyer knows that pre-approval is required, so EVERY buyer already does that. It’s no longer sufficient just to be pre-approved, its actually more important to be pre-approved by the RIGHT lender. To find out HOW you do that, watch this video.

Hi everyone:

Winnipeg REALTORS® have issued their monthly Market Update report for Winnipeg’s hot real estate market.  In short, we continue to ‘buck’ the national trend, and since Real Estate is a local issue, home buyers in Winnipeg are well advised to listen to these local reports, rather than the national news media.

While nationally, home prices are expected to increase by only 3.5% on average, Manitoba will see an increase of nearly double that….. at 6.7%.  Also, nationally, the number-of-sales is set to DECLINE by 1.2%, while Manitoba will see a healthy 2% INCREASE.  This is a case where, I feel, a “little knowledge is dangerous”, as they say.  Buyers who listen to the National News reports of “The Bubble is Bursting”, get a false sense that prices are dropping, competition is easing, when in fact the opposite is true in Winnipeg.

I recently listed a nice family home in an upscale neighbourhod for $359,900 and received multiple offers….  in the middle of JULY.  Bidding wars are far from over.

Winnipeg REALTORS® report that during the month of July, there were 1195 sales in total, with 1587 new listings coming to market.  34% of all sales were between the $100,000 to $200,000 price range, while a whopping 39% were in the $200K to $300K range.

Compared to last year, July ’09, our market was a little faster as well.  This July, Condos sold in an average of 31 days, as opposed to last years 33 days.  Detached homes sold in an average of 28 days, compared with 30 days in July ’09.

For a look at the complete report, go to Press Release July 2010 MLS Statistics

Hi everyone:

When the time comes to sell your house or condo, and you decide, like 90% of home owners, to ‘list’ your home with a real estate agent, how do you select from the 1400+ REALTORS® in Winnipeg?  With some many choices, you would think that the choice would be a difficult one.  Well, not really, as about 95% of agents follow the same program:  List the property on the MLS® and let the system do the work.  Nothing wrong with that, but there are a few other upgrades available.

In Winnipeg, REALTORS® seem to have 3 different ways of getting the home owner to choose their service:  Quote the highest listing-price, Offer the lowest possible commission or (gasp) Offer an outstanding service coupled with an excellent marketing plan.

In this 3 part series, I will explain the pitfalls of the first 2 options, starting with that age-old favorite of the desperate agent: “Quote the Highest List Price”.

So here is the scenario:  You (the home-owner)  call 3 agents to ask their opinion as to the value of your home.  This is actually the wrong thing to do, as it invites agents to promise and predict higher and higher selling prices.  Instead, the owner should be interviewing agents to find out their marketing plan for the home which is being sold.  Anyway,…. I digress.

So agent #1 comes into the home, and the discussion turns to the value or price of the home.  The agent pulls out some comparable properties and they seem to indicate a sale price of approx. $200,000.

The next day, agent #2 enters the home, and his comparable properties also seem to suggest a sale price of $200,000.

On day three, the miracle worker arrives:  He looks at the house, (or condo) and ‘ooohs’ and ‘aaahs’ over the selection of colors, the ‘stunning’ beauty of that crystal chandelier, the functionality of that re-painted kitchen.  Yes, his comparable properties also indicate a sales price of around 200,000,  but since he runs a big team of agents, he is confident that he can get $220,000 or maybe even $230,000.

When reading this article in the cold light of day, we all realize the projected outcome, and we are likely to say :“Oh, come one….  this would NEVER fool ME.“  Well, folks, it happens every day….  and it works!!!   Home-owners like to hear nice things about their homes, and they love positive projections and predictions, and so the “Big-Team” leader gets the listing.  Many times with predictable outcome.  Here’s an example of what happens:
Agent #1 suggested a list price of $199,900.

Agent #2 suggested a list of $214,900.  Homeowner lists with #2.   A few weeks into the listing, the price is reduced to $204,900  and then again to $199,900  and the home finally sells for $197,000.

IF the home had been listed at the proper price in the first place, it would most likely have sold right away, and very likely even with multiple offers, driving the price up from $199,900.  Instead, it languished on the market, and after a few weeks, and a couple of price reductions, the ‘bargain hunters’ start coming out.

The home owner in this example probably never realized that a ‘big team’ has obligations to feed their assistants, and as such, the pressure to get the listing “at any price” is great.  The reasoning is :”Better to get the listing at a high price and then reduce it later, than NOT to get the listing at all”.

Now I wish to assure you that NOT all agents operate like this, but as a homeowner, please remember this: Look for other difference between agent #1, #2 and #3, but DO NOT choose by the higher quoted listing price alone.

In the next article, I will look at method #2:  Offering the discount commission.

Until then, if you’re thinking of selling your house or condo, please call me anytime for an objective opinion and diverse marketing plan for your home.

Bo  333-2202

Hi everyone:

Looks like I just sold a condo in the ‘yet-to-be-built’ Dennistoun Condominiums on Roslyn Rd.

This exciting project, Dennistoun Condos, which is accepting pre-orders for suites at this time, is scheduled to start construction in the spring of 2011.  Located on Roslyn Rd, just west of Osborne St,  units range in size from 795 sq ft to 1200 sq ft and prices range from around $260,000 to $430,000.

I always advise my clients that there are 4 or 5 ‘should-have’ items in a condominium.  These are:  Underground Parking, Insuite Laundry, Central Air, Concrete Construction, and Location, Location, Location.

Although this building is months away from construction start, it appears to have all of the above.  Underground Parking is included in the larger suites (at no extra cost) and all suites have central air, furnace and insuite laundry.  You certainly can’t argue the location, in Osborne Village and right behind Safeway.

The condominium will feature 71 suites, and the developer requires that 30 units are reserved before going to the next phase.  I’m told that now 23 are already reserved, so if you’re thinking of buying a new construction condo, in a fabulous trendy Osborne Village area, don’t delay.  Call me anytime for more info…  Bo 333-2202

Hello everyone:

Let’s start with a “Note to Home-Sellers:  STOP listing your homes for LESS than you are willing to ACCEPT!!!!”

So here is the scenario:  I’ve got a buyer, pre-qualified and approved for up to $200,000.  This week, we find a nice home, listed at $196,000.  The home-owner has tried the “Showings Start Friday, Offers on Tuesday” deal, in an effort to bring in multiple offers and drive the price up.  Alas, its July and they only had a handful of showings, and no offers. 

So my buyer decides to write a very nice and clean offer, and we present it to the Listing Agent and the owner.  My buyer is ‘pumped’….  could this be the one? I’m excited too.  …  Until we get the call that the owner has turned down the offer!  And NOT JUST turned it down, but refusing to even counter-offer it.  As the Listing Agent explained, the owner had her sights set on $20,000 more, and would not sell for the asking-price.

And so my initial caution from up top:  DON’T list your home for less than you’re willing to accept!”

I understand that there are times in the year when a low-pricing strategy will work.  It’s a pretty safe bet that, given our current market, if you list your home with a REALTOR® in the spring time, and the home shows well and is priced well, you’re going to get multiple offers.  Unfortunately, some agents rely on this strategy ALL YEAR LONG, but guess what: Marketing Strategies are not like Spandex pants: One Size DOES NOT fit all!

Even Winnipeg’s hot real estate market will have slow times, such as July and August, and again in December-January.   a strategy which works in April or May, could backfire on you in July, when Winnipeg Home Buyers traditionally ‘take a break’, and instead of 35 showings, the home receives only 6 (or even fewer).

Experienced agents, who have been thru these seasonal cycles, understand this, and create special marketing plans for these situation.  (Actually, the Marketing Plan should fit not only the season, but the type and style of home as well….  ONE SIZE DEFINITELY does NOT fit all situations).

Now for the good news: Just because the market is a little slower, does NOT mean you wont get as much money as your neighbour did in the spring!!  It just requires a different approach, a plan that does not simply count on “Low-Price = Bidding War” type of thinking.

So if you are a home-owner thinking of selling their home, call me for your special and customized marketing plan.  One of the first questions I will be asking is “When are you thinking of selling?”….. because the timing is an important factor in creating the proper marketing plan for your home.

You don’t have to tell the average Canadian homeowner that real estate is a good investment. With very few exceptions, home equity has been building across Canada, and many Canadian homeowners have determined that two or more roofs are better than one. There are several reasons why a growing number of Canadians are purchasing investment properties:
1. Return on investment. Certainly, residential real estate is a solid long-term investment, typically appreciating faster than inflation. Even Canadians who have chosen their stock portfolio very carefully may find that their home is their best-performing investment. Many investment advisors recommend diversifying stock and bond portfolios to include real estate. Initially the goal is to have rental income cover all or most of the costs of the property. Over time the goal is to see an increase in the value of the real estate, with rent turning to profit once the mortgage is paid off. Expenses related to the property are of course tax deductible, offsetting the rental income.
2. A pension plan for the future. Over the long term, an investment property or multiple real estate holdings can be a great source of retirement funds. Many Canadians do not have a pension plan, which means they need to take their own action to create sources of retirement income.
3. A better alternative to student residence. Many Canadians are shipping off their university-age children, and housing them in an investment property purchased specifically for that purpose. They can save money on out-of-town accommodations for the student, and use revenue from other renting students to pay the mortgage and maintenance expenses.

4. Earlier access to a first home. For first-time home-buyers, a duplex or triplex can be a terrific way to get onto the home ownership ladder. Rental income from the extra units can help offset the cost of the mortgage as the new homeowners get on their financial feet.  Rules have changed however for investment property mortgages since the government’s new mortgage rules that came into effect April 19, 2010. A minimum downpayment of 20% is required for an investment property i.e. you’re not personally living in the property that you own, which is up from 5% prior to the new rules. You can put down less than 20%, but you’ll need to use an uninsured lender, which can mean higher interest rates. If you only have 1 to 4 properties, there are several CMHC lenders from which to choose from. Once you have more than 4 properties you need to start spreading out your business among several lenders so as to not reach the maximum number of mortgages a lender will approve per investor.
Other underwriting or qualifying rules have also come into play; Canada Mortgage & Housing Corp (CMHC), Canada’s largest mortgage insurer, has changed the way they treat rental income in their debt service calculation, which can make qualifying more difficult.
Sound confusing? It absolutely is. That’s why you need to speak with an experienced mortgage planner who can help you better understand what’s involved in financing investment properties. There’s no cost or obligation. We’re up-to-date on current rates and all of the opportunities available for property investors from all of the lenders in the marketplace. Whether you need an investment property mortgage or just looking for some advice, a mortgage broker is ready to help!  See my website at Igloo Mortgage