I would tend to agree with a few of the points from an article that appeared in the globe and mail from a few weeks ago (see below). It is my understanding that the more first time home buyers that enter the market without sufficient inventory to select from can be one of the contributing factors of what happened a few years ago where too many buyers in the market didn’t have enough homes (inventory) to select from. Demand outstrips supply and we see 2, 3 or 4 buyers looking to acquire that entry level home in a good neighbourhood and multiple offers increase the purchase price which then has a trickle down affect to the next sale in the neighbourhood and the feeling from Buyers that they have to outbid other buyers as opposed to being able to shop for a home.
Article from Globe and Mail
There seems to be recognition that maybe there could be somethings to consider to assist 1st time home buyers getting into home ownership. Although, RBC warns against taking measures to spur the market.
Some highlights as follows;
Some chatter of late of what Bill Morneau may unveil in the March 19th budget related to housing affordability
Some possibilities mentioned have been;
o 30 year amortizations for 1st time home buyers
o Relaxing the stress test
o Increasing the tax free RRSP withdrawal limit for 1st time home buyers
RBC Senior Economist, Robert Hogue, warns against taking such measures as they don’t address concerns such as;
o Gaps in the mix of housing options
o High household debt
o Inventory challenges
o He even warns such measures could inflate prices
Hogue does not believe Canada has a problem with home ownership;
o On average, more than 40% of Canadian Households headed by those under the age of 35 own their homes
o The proportion of Canadian households who own a home is one of the highest in advanced economies
Hogue feels that the collective goal should be to remove barriers (regulatory, administrative etc.) inhibiting developers and builders to respond quickly to the demand for new housing
If you would like to know more about the real estate market in your neighbourhood or community i would be happy to create a customized report that will outline the details of the market is performing from both sides of the equation.
Durham Region is quickly becoming a very desirable place to be and Live! I can think of so many reasons why families are looking eastward from Toronto. The two very prominent reasons for this recent increase in demand are the fact that prices in the area remain very much in reach for many first time home buyers and move up buyers in the Toronto market. That combined with the extension of the 407 ETR out to Harmony Rd. in December 2015 will vastly reduce travel times into Toronto, Person Airport and other surrounding communities that now employ a great deal of people such as Mississauga, Vaughan and Richmond Hill.
In a recent article in the Port Perry Star I was surprised to see that the Township of Scugog which is where Port Perry is located, actually has the highest average selling price in Durham Region for 2015 so far at $596,201. The article also stated that Scugog township shot near the top of the list for single detached homes with an average cost of $614,000 second to Pickering with an average selling price for a single detached home at $615,000.
There are many factors that will influence average prices; Overall population and the type of housing available to buyers in those cities, communities or towns will have a major impact. Take for example Oshawa which has a greater mix of housing types with Semi Detached, Townhomes, Condo Apartments and Single Detached homes compared to a town such as Uxbridge or Port Perry where the resale market is dominated by larger Single family detached homes and not a lot of Townhomes or Semi Detached homes available for buyers.
The article also went on to talk about current inventory levels not being at the same level as demand from buyers, which results in a bit of sellers market. Even though there was a 6% increase in the number of residential transactions so far in 2015 demand from Buyers still outstrips the current inventory levels. Many buyers who have been involved in multiple offers will remain in the market and will probably be even more active once this cold and snow is gone. Many industry leaders across the region are pointing to the economy (lower Interest rates), the lower Canadian Dollar and strengthened exports to continue fueling better job possibilities which will in turn continue to drive this very active real estate market.
When I first heard this phrase from a past client of mine I had no idea what he was talking about!
Our discussion revolved around a new cause that he was involved and that they needed some support with their first large event. It was to be a golf tournament at Wooden Sticks in Uxbridge. I thought to myself this is going to be a bit of an uphill climb being the first event and not having a great deal of main stream recognition out of the gate.
I happily provided the support I could by sponsoring one of the Holes and participating in the days event, (honestly I don’t get very many opportunities to play such a great course). With sponsorship committed I went about my daily events not thinking much about it until closer to the actual day and occasionally wondering how this event was to play out and what it would be like. I had been to other events and seen how sponsors seemed to get lost in the mix and the day quite often will pass by with little or no interaction with the events planners and little discussion about the cause or why we were all gathered. Well much to my surprise my stereo typical thought process was completely shattered! The event was a huge success and I was happy to be involved.
From the moment we stepped out of the car we were knew exactly why were there and met with almost all of the event planners and organizers. We were provided shirts, Jackets and other swag that was very much appreciated but also spoke to the reason why we were there – Fighting the Truth was created by a couple of ex-hockey players who have had their fair share of battles both on and off the ice and how They recognized a need to provide help and support for young hockey players travelling the same road they did…*
The days events went off without a hitch and the entire event ran so very smoothly (thanks again to all of the event planners and volunteers) and we got the chance to speak to many of the people that created this event and have taken charge in this cause. I was very impressed and will continue to provide my support to this event as I felt involved and felt very much appreciated as a sponsor of the event, even though I was not the largest contributor, not even close!
The other reason I will stay involved in this cause didn’t present itself until almost the very end of the event, just after diner. One of the organizations founders, Cory Bricknell stood in front of over 150 people and told his very raw and hard hitting story and I was moved by the passion in him and the story he shared with us. We almost always hear about the pinnacles and peaks the superstars in sports reach, The highlights they entertain us with and the sometime near impossible moves or displays of sheer athleticism they preform on a regular basis that get us out of our seats and have us cheering so loud and waving our home teams jerseys or flags with pride. What we don’t hear about are the more real and gritty story’s, the story’s that Cory Bricknell lived and all the others who sometimes aren’t as lucky those are the story’s we only hear about or pay any attention to when we are reading about the tragic story in the papers or watching on the 6 o’clock news. You don’t need to go that far back in time, just last year we lost a young OHL player by the name of Terry Trafford who took his own life. That was a truly tragic story! We don’t want to change the focus we should simply want to shine some of the spotlight on the other side of our sports heroes and the lives they lead and the pressures that are on them.
I will admit, that until August 27th, 2014, I didn’t think much about the other side of the story, I honestly didn’t think there was another side, I simply thought that athletes performing at very high levels had everything in place. Well it turns out that sometimes it’s just not the case. life for them can be tough and they need help, guidance and assistance as much if not more than the average guy. I will continue to cheer at the Oshawa Generals and the Port Perry Mojacks games in support of the home team but I wont be so quick to heckle and jeer the visiting teams as I now understand that despite the fact they may engage in the heckling and it may seem funny at the time, there is a whole different world for that the exists once they walk down that tunnel to their dressing room.
Sports is a great social event that brings everyone together, We cheer for the underdog and the home team and we love to give the visiting team a hard time. Just keep in mind that these superstars, these select few elite athletes, who appear to be affected by nothing and take a physical pounding night after night and who can dish out an equally physical response are quite often a few years removed from kids, our kids, who used to play in the playground for fun with their friends.
Keep up the Fight and Fight for the Truth !!
I am looking forward to next years event – Thank you