Home Ownership Tips 6 August 2021

Is the Real Estate Market cooling in Grey Bruce Owen Sound?

Is the Real Estate Market cooling in Grey Bruce Owen Sound?

By Tim Matthews, Broker with Century 21 In Studio Realty. 

Is the market starting to slow down again in Grey Bruce Owen Sound (GBOS)? The stats would say yes, but it’s hard to say if this is just a seasonal/cyclical summer slow down that will once again pick up in the fall. Let’s look at some stats. 

Why Month of Inventory is the Best Stat to look at

My favourite stat to look at is Month of Inventory (MOI), what does this mean you ask? Well, how long would it take for everything to sell if no new listings came on the market. Back in January the GBOS real estate market hit an all time low of one month of inventory with a total of 254 homes for sale. For the month of July we are now at 1.9 months of inventory with a total of 505 homes for sale. To put this into perspective, let’s compare it with July of 2014. We were sitting at 15 months of inventory with 2540 active listings. That is a strong buyers market. Since 2014 the supply of homes has been trending down, and once COVID hit we saw massive price acceleration. We are still in a strong sellers market based on Month of Inventory of 1.9. 

Check out this graph showing month of inventory in Grey Bruce Owen Sound since 2009.

What about prices & sale volume in the month of July?

The median sale price in GBOS in July was $535,000, up 26.6% year over year. However if you look back at the month of June the median sale price was $558,000 so prices have dipped slightly. What about Volume of sales? This area really cooled off. In the month of June BGOS saw 340 home sales. That was down to 260 in July. The graphs below show volume of sales and sale prices. 

 

 

It’s a good time to sell and buy right now

It’s obvious the market has cooled, but it certainly has not crashed. Prices are still high and inventory is low. Anyone looking for a substantial market crash will likely be left waiting for a long time. If you’re considering a sale, prices are still up 26.6 % since last year, and homes still got 100% of their asking price in July. If you’re thinking about buying, August brings a great opportunity: Lower sale prices, motivated sellers & less buyer competition. 

 

Tim Matthews is a Real Estate Broker with Century 21 serving the Grey & Bruce Owen Sound area. Want to connect with Tim about buying or selling a property? You can contact him here.

Or you can call or text Tim any time at 519.375.7153

Home Ownership TipsMarket Update 16 July 2021

Wartime Housing in Canada and Ontario

Wartime houses are a Canadian legacy from the 20th century. The importance of these modest houses was acknowledged by Canada Post in 1998 with the “Veteran’s House” stamp.

This blog post will give some background about the history and architecture of wartime housing.

When were they built?

Between 1941 and 1947, a federal crown corporation called Wartime Housing Limited built 46,000 wartime homes across Canada. They were first built as rental units, but by 1944 the government had started to encourage homeownership. 

Most of the houses were prefabricated and then shipped to the building sites. This resulted in very homogenous developments in almost every major Canadian city. 

 

Wartime Housing in Canada and Ontario, Owen Sound Real Estate, Grey Bruce Real Estate

 

What do they look like?

The architectural style of these wartime houses has been referred to by a number of names: “Simplified Cape Cod” (because they are a compact version of New England styles), “Strawberry Box” (because they resembled a common fruit container), and “Victory Houses” (celebrating the Allied victory in the Second World War).

These houses were small and built from federal government-provided floor plans. The typical styles of the wartime house were detached bungalow, one-and-a-half storey, and two-storey semi-detached structures. 

 

Wartime Housing in Canada and Ontario, Owen Sound Real Estate, Grey Bruce Real Estate

 

The facades were clapboard siding painted white (or brick) with entrances at the front and the side. They had steeply-pitched gable roofs, small sash windows, and small metal chimney stacks. 

Inside the houses, the main floor often had a living room, kitchen with dining area, bathroom, and one bedroom. The upstairs had two more bedrooms. 

The streets around wartime houses were often curved or featured cul-de-sacs and given war-specific names such as Victory or Churchill. A large park was often planned for the centre of the neighbourhood.

Why were they built?

The government of Canada was hoping to avoid the disaster of the 1919 Soldier Settlement Act that failed to meet the needs of returning soldiers. 

In 1942, the government passed the Veterans’ Land Act to build wartime homes to help returning veterans and their families, as well as people working in war-related industries. The act included measures to build or finance housing, and one of the main objectives was to get people working, specifically by giving them a bit of land in order to provide for themselves. The houses were very small to allow for a large portion of the property to remain available for gardening.

 

Wartime Housing in Canada and Ontario, Owen Sound Real Estate, Grey Bruce Real Estate

 

One unusual example of wartime homes for people working in war-related industries is in the Scarborough neighbourhood of Toronto. Dormitories were built in 1941 for the employees (mainly women) doing munitions work at the General Engineering Company near Warden Avenue and Eglinton Avenue East.

What is the cost of a wartime house in Owen Sound? 

In Owen Sound, the most popular spots for wartime homes are along 5th and 6th Street East.

Wartime homes have been some of the hottest properties on the market in 2021 and they have been selling firm on average in 6 days. The average price is $358,863* (as of July 2021), but a lot of them have been selling quite a bit over the asking price. 

 

*Ontario Collective MLS

 

Home Ownership Tips 8 July 2021

Do you need to pay HST on vacant land sales?

Do you need to pay HST on vacant land sales?

In this video local accountant Adam Vander Duim Gives some helpful tips. Need to connect with an accountant? you can contact Adam here.

Want to chat about Real Estate?  Let’s Connect!

 

Market Update 8 May 2021

Are we in a housing market bubble?

Are we in a housing market bubble?

 

Are we in a housing market bubble? A simple google search of Canadian Real Estate will tell you that people are concerned about it. The price of a home in Grey Bruce Owen Sound has gone up 56.7% since last April, and 11.3% since January of 2021. One has to wonder, how long can this pace be sustained? It’s not just Grey Bruce that’s having this upward momentum, it’s the entire country. In the month of March, The price of a home in Canada was up 31.6% in one year according to CREA.

Why have prices gone up so much?

There has been a perfect storm of factors causing the surge in house prices; increased cost of building material and new construction, low interest rates, government grants, increased consumer savings, people moving out of the big cities and buying in smaller towns, and of course, the severe lack of supply. 

But is it all going to come crashing down? Probably not. Investors dictionary defines a housing bubble as: 

“..a type of economic bubble that occurs periodically in local or global real estate markets. It is characterized by rapid increases in the valuations of real property such as housing until they reach unsustainable levels relative to incomes and other economic indicators, followed by decreases that can result in many owners holding negative equity (a mortgage debt higher than the value of the property). Unlike a stock market crash following a bubble, a real-estate “crash” is a slow process, because sellers just decide not to sell.”

There is little doubt prices are inflated, should we be worried homeowners cannot afford their payments?

To get a mortgage in Canada you have to qualify based on Three things: 1) Down payment  5% for purchases up to $500,000, 10% for purchases between $500-999,999 and 20% for purchases 1 million and over. 2) Debt service ratios – Lenders look at your monthly payments for your housing expenses, interest, car & loan payments and divide that by your annual income. That number needs equal less than 40% to get approved. 3) Stress Test – Borrowers taking a conventional mortgage must qualify based on the Bank of Canada Benchmark rate, which currently sits at 4.69%. You can still whatever the prime rate is, but you must qualify  based on making payments at 4.69%. It’s not easy to get a mortgage in Canada and to think that people all of a sudden won’t be able to afford their payments if prices go down is wrong. 

Will rising interest rates cause the market to crash?

What about all the talk of government intervention to cool the market? The BOC does not plan to raise the overnight rate until 2022 and any adjustments to bank interest rates should be small. Even the Federal Liberals’ Parliamentary Secretary for Housing Adam Vuaghan stated recently that Ottawa does not want to see recent gains in home prices decline

So will we see a market crash?

Unlikely; demand remains, and underwriting criteria to qualify for a mortgage in Canada is strong. Interest rate increases will cool the market but it will be gradual. It does not appear a crash is on the horizon, even CMHC is not predicting a crash, and they always do. However a gradual cool down of the market should not come as a surprise in the coming months. 

 

Tim Matthews is a Real Estate Agent serving Owen Sound and Grey County. Want to talk with Tim? Lets Connect

Connect with me on Social!

facebook: https://www.facebook.com/timmatthewsC21

Instagram: @timmatthewsc21

Home Ownership Tips 26 April 2021

Should I hire a paralegal to help me as a landlord?

Should I hire a paralegal to help me as a landlord? Yes. Paralegals specialize in helping landlords and tenants in Ontario. If you have to file for an eviction, any simple mistake can get your case thrown out. A paralegal can save you time, money and a lot of heartache. In this video Kara, Paralegal with Muzzell Legal Services explains. If you need to contact the Landlord and Tenant Board you can find their information here. If you are looking for a paralegal to represent you, you can contact Muzzell Legal Service here.

Have questions for Tim? Lets Connect!

 

Home Ownership Tips 19 April 2021

How does Ontario capital gains tax work?

 

How does capital gains tax work in Ontario? If you are going to be buying or selling Real Estate in Ontario frequently, you are going to want to look into how capital gains tax could affect you. In this video local accountant Adam Vander Duim Gives some helpful tips. Need to connect with an accountant? you can contact Adam here.

 

The amount of tax you will have to pay is based on a marginal tax rate, you can find some tips here. 

Want to chat about Real Estate?  Let’s Connect!

Home Ownership Tips 15 April 2021

How should I decide what renovations to do?

How Should I decide what renovations to do?

If you are considering a renovation but are unsure what to do, watch this video as I share 3 tips that will help you decide how to prioritize your renovations and increase the value of your home.  

Tim Matthews is a Real Estate Agent serving Owen Sound and Grey County. Want to talk with Tim? Lets Connect

Connect with me on Social!

facebook: https://www.facebook.com/timmatthewsC21

Instagram: @timmatthewsc21

Home Ownership Tips 2 April 2021

3 tips to update your home