A good article that imparts advice on how to sell in a down market. For those people in areas where the market is still holding up - this information is still relevant. Whether you are trying to keep yourself out of foreclosure, trying to maximize your return or flip quickly, these rules apply.
The problem with most people is that they are greedy. The fact that they have, say, a $50,000 to $75,000 + gain in home value in 9 to 12 months without lifting a finger to improve the home isn't good enough, they want that extra $10,000. In an increasing market this home will sell, not in two to three weeks but two to three + months when the market catches up with the asking price.
This greed aspect also holds true in declining markets. I understand that people don't want to lose money, but by having unrealistic expectations of what prospective buyers should you for your property will expand your loses in the end.
Final thoughts: All the points in the article I believe are helpful but by far "Price it right" is essential to quickly selling any property in any market. Time lost by holding out for that extra dollar is keeping you from getting your profit out of the deal and moving on to your next investment.
Showing posts with label market movement. Show all posts
Showing posts with label market movement. Show all posts
Tuesday, May 27, 2008
The Wrong Side of a Real Estate Slump
Thursday, May 15, 2008
Hawaiian home away from home
Canadians are one of the forces holding up Hawaii's real estate market and currently estimated to account for 10% to 15% of foreign buyers.
The main draw for foreigners seem to be in the $500,000 + luxury home and condo sector as many see this market as currently having good value with great future growth potential.
Sales volume has cooled off from its highs in 2005 and with the weak US dollar, many foreigners are buying up luxury condos and houses for investment and vacation homes.
One realtor comments, "Maui inventory is much more available and affordable. The period of "irrational exuberance" in the Real Estate Market is over for now. There has been a correction and the over inflated priced homes do not sell. The market seems to have stabilized in the recent months."
Final thoughts: A quick search showed vacation rentals in the $120.00 per night for a 2 bedroom 2 bath condo.
I looked around an MLS site and there are plenty of options for less than $300,000.
It would require more investigation but on the surface it looks like one could purchase a decent condo around the $200,000 mark and have tourists pay it off.
If you are interested in a vacation home in Hawaii it's worth looking into.
The main draw for foreigners seem to be in the $500,000 + luxury home and condo sector as many see this market as currently having good value with great future growth potential.
Sales volume has cooled off from its highs in 2005 and with the weak US dollar, many foreigners are buying up luxury condos and houses for investment and vacation homes.
One realtor comments, "Maui inventory is much more available and affordable. The period of "irrational exuberance" in the Real Estate Market is over for now. There has been a correction and the over inflated priced homes do not sell. The market seems to have stabilized in the recent months."
Final thoughts: A quick search showed vacation rentals in the $120.00 per night for a 2 bedroom 2 bath condo.
I looked around an MLS site and there are plenty of options for less than $300,000.
It would require more investigation but on the surface it looks like one could purchase a decent condo around the $200,000 mark and have tourists pay it off.
If you are interested in a vacation home in Hawaii it's worth looking into.
Thursday, May 1, 2008
Prince George worth a look
Prince George with a population of around 77,000 is facing an economic downturn. This is mainly due to the softening of the lumber industry.
The City is a centre for mining companies that operate in Central B.C. There are reports that indicate along with the current mining of minerals the area is showing promise of petroleum resource potential.
Prince George is also at the cross-roads to the northwest coast where there are a number of new projects in play to support shipping to the orient.
Century 21 reports that values are essentially flat year over year while the B.C. Northern Real Estate Board claims the average Prince George house price is up six per cent this year.
CMHC reports the vacancy rate as of October 2007 for all apartments in the city stood at just 1.9 per cent down from 2.6 per cent the year before.
Housing starts were down slightly in March and also year to date however this is not indicative of a trend this early in the year.
Prince George is also a major shopping centre for many surrounding communities within a one to two hours drive.
Final though: A quick MLS search showed a multitude of housing options under $200,000
The City is a centre for mining companies that operate in Central B.C. There are reports that indicate along with the current mining of minerals the area is showing promise of petroleum resource potential.
Prince George is also at the cross-roads to the northwest coast where there are a number of new projects in play to support shipping to the orient.
Century 21 reports that values are essentially flat year over year while the B.C. Northern Real Estate Board claims the average Prince George house price is up six per cent this year.
CMHC reports the vacancy rate as of October 2007 for all apartments in the city stood at just 1.9 per cent down from 2.6 per cent the year before.
Housing starts were down slightly in March and also year to date however this is not indicative of a trend this early in the year.
Prince George is also a major shopping centre for many surrounding communities within a one to two hours drive.
Final though: A quick MLS search showed a multitude of housing options under $200,000
Wednesday, April 30, 2008
Agriculture the next real estate play
Everyone has been hearing and reading about the rising costs of food around the world. This storey is in part a decline in food production, increased global demand from developing countries like China and India, the US government pushing forward on corn based ethanol production and finally market speculators pushing up the prices. That being said several commodity, real estate and other experts are looking forward on a 10 year boom in commodity prices.
If we look at it from a real estate perspective, farmland is the obvious place to be. Assuming a 10 year boom in the commodity market plays out, real estate values of farmland will skyrocket. I base this primarily on the limited supply of farmland and adding another billion people to the world population by 2020. In addition to this, farmland around the world is decreasing due to development and loss of ground water .
The Spring 2008 Farmland Values Report released by Farm Credit Canada says the following:
"The average value of Canadian farmland increased 7.7 per cent during the last six months of 2007, Canada's highest increase since 2002. This is higher than the 3.6 per cent increase in the first six months of 2007.
Most provinces continue to see growth in farmland values, with British Columbia experiencing a huge 14.5 per cent increase. Overall increases are consistent with an upward trend in land values since January 2000.
With the largest increase in B.C. at 14.5 per cent, Alberta shows the second largest increase at 10.3 per cent. Saskatchewan follows closely behind with an average 7.8 per cent increase and Manitoba is experiencing a similar per cent increase of 7.3 per cent.
Quebec shows an increase of 3.6 per cent, while Ontario's farmland values increased slightly at 1.2 per cent during the last six months of 2007.
Atlantic Canada land values varied, with Nova Scotia showing a 3.1 per cent increase, while Prince Edward Island and New Brunswick indicating decreases of 1.4 per cent and 3.3 per cent, respectively. Newfoundland and Labrador land values remained the same in the second half of 2007. "
Final thought: For all those times you wish you would have jumped into the market early and made your fortune, now is the time to investigate the future follow the money and make your play.
If we look at it from a real estate perspective, farmland is the obvious place to be. Assuming a 10 year boom in the commodity market plays out, real estate values of farmland will skyrocket. I base this primarily on the limited supply of farmland and adding another billion people to the world population by 2020. In addition to this, farmland around the world is decreasing due to development and loss of ground water .
The Spring 2008 Farmland Values Report released by Farm Credit Canada says the following:
"The average value of Canadian farmland increased 7.7 per cent during the last six months of 2007, Canada's highest increase since 2002. This is higher than the 3.6 per cent increase in the first six months of 2007.
Most provinces continue to see growth in farmland values, with British Columbia experiencing a huge 14.5 per cent increase. Overall increases are consistent with an upward trend in land values since January 2000.
With the largest increase in B.C. at 14.5 per cent, Alberta shows the second largest increase at 10.3 per cent. Saskatchewan follows closely behind with an average 7.8 per cent increase and Manitoba is experiencing a similar per cent increase of 7.3 per cent.
Quebec shows an increase of 3.6 per cent, while Ontario's farmland values increased slightly at 1.2 per cent during the last six months of 2007.
Atlantic Canada land values varied, with Nova Scotia showing a 3.1 per cent increase, while Prince Edward Island and New Brunswick indicating decreases of 1.4 per cent and 3.3 per cent, respectively. Newfoundland and Labrador land values remained the same in the second half of 2007. "
Final thought: For all those times you wish you would have jumped into the market early and made your fortune, now is the time to investigate the future follow the money and make your play.
Tuesday, March 18, 2008
Market Numbers
Click on the image for a larger view.
REM: The numbers are up across the board. Any predictions for the market for the remainder of the year?
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