WINDSOR IN THE NEWS...... FEBRUARY 2012 MARKET REPORT TO DATE:

According to MLS statistics in February, 2012 a total of 438 residential homes were sold (up from 320 for the same month last year). The average sale price of these homes was $166,251(compared to $143,142 during the same month last year). As for home styles, Ranches were the top sales. 85 of these home types were sold, with the average sale price of $179,521. As for Raised Ranch style homes - 55 units sold for the average price of $216,253. 59 2 Storeys sold, averaging $202,641, and 58 one and one half stories also sold, at an average sale price of $118,457. The least expensive home style was the bungalow - 45 units sold for an average sale price of $81,954. The average sale price year to date is at $166,123, compare to last year at $143,255.

Bank of Canada keeps interest rates on hold. The Bank of Canada kept its trend-setting Bank Rate at 1.25 per cent on January 17^th, 2012. This marks the 11^th consecutive policy meeting in which borrowing costs have been left unchanged.

While recognizing that the outlook for the global economy had deteriorated and that uncertainty had increased since it released its October Monetary Policy Report (MPR), the Bank also made those same observations at its previous meeting on December 6^th.

Economic growth in Canada had more momentum in the second half of 2011 than the Bank projected in its October MPR, but it expects the pace going forward to slow by more modest than previously expected, due largely to factors outside Canadian borders. This reiterates statements made in December 2011. On the upside, the Bank said that “very favourable financing conditions are expected to buttress consumer spending and housing activity.”

The Bank releases its updated forecast for Canadian economic growth. It now estimates that the economy grew by 2.4 per cent in 2011 compared to the initial estimate of 2.1 per cent, owing to the better than expected end to the year.

The Bank projects growth of 2.0 per cent in 2012 compared to 1.9 per cent in the October MPR, and 2.8 per cent in 2013, down slightly from the previous 2013 forecast of 2.9 per cent, with the big picture being that past and current growth estimates have been revised upward at the expense of future economic growth.

“The Bank said it expects the pace of growth going forward to moderate by more than initially thought, but the forecast for growth this year has actually been raised slightly,” said CREA Chief Economist Gregory Klump. “That reflects a weaker than previously expected growth profile for the first half of 2012, followed by an acceleration in the second half of the year.”

“The Bank reiterated that its outlook remains subject to downside risks from the sovereign debt issue in Europe. Recent credit-rating downgrades to much of the euro zone point to potential contagion by way of a drop in financial market liquidity,” he added. “The bottom line is that the Bank rate is not going to be going up anytime soon, and we may see rates lowered should downside risks materialize.”

The Bank noted that “while the economy appears to be operating with less slack than previously assumed, it is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October.” Overall, inflation expectations remain “well-anchored.”

A number of financial institutions have recently dropped their five-year lending rates to a record low of 2.99 per cent. This is down considerably from the advertised five-year rate of 5.29 per cent when the Bank last met on December 6^th, 2011.

The Bank will make its next scheduled rate announcement on March 8^th, 2012.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... JANUARY 2012 MARKET REPORT TO DATE:

According to MLS statistics in January, 2012 a total of 328 residential homes were sold (up from 300 for the same month last year). The average sale price of these homes was $168,927(compared to $160,535 during the same month last year). As for home styles,  Raised Ranches were the top sales, 59 of these home types were sold with the average sale price of $213,125. As for Ranch style homes - 41 units sold for the average price of $175,223. Forty-seven 2 Storeys sold, averaging $249,842, and 33 one and one half stories also sold, at an average sale price of $115,359. The least expensive home style was the bungalow - 43 units sold for an average sale price of $88,520. The average sale price year to date is at $168,906, compare to last year at $160,265.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... December 2011 MARKET REPORT TO DATE:

According to MLS statistics in December, 2011 a total of 290 residential homes were sold (down from 295 for the same month last year). The average sale price of these homes was $168,546(compared to $158,604 during the same month last year). As for home styles, Raised Ranches were the top money getters, 52 of these home types were sold, with the average sale price of $174,521. As for Ranch style homes - 44 units sold for the average price of $204,553. 35 2 Storeys sold, averaging $258,821, and 29 one and one half stories also sold, at an average sale price of $112,559. The least expensive home style was the bungalow - 38 units sold for an average sale price of $82,050. The average sale price year to date is at $170,304, compare to last year at $162,225.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... NOVEMBER 2011 MARKET REPORT TO DATE:

According to MLS statistics in November, 2011 a total of 298 residential homes were sold (down from 342 for the same month last year). The average sale price of these homes was $161,551(compared to $160,852 during the same month last year). As for home styles, Raised Ranches were the top money getters. Forty-nine of these home types were sold, with the average sale price of $208,511. As for Ranch style homes - 50 units sold for the average price of $192,903. Forty-six 2 Storeys sold, averaging $189,921, and 46 one and one half stories also sold, at an average sale price of $129,489. The least expensive home style was the bungalow - 37 units sold for an average sale price of $89,050. The average sale price year to date is at $170,106, compare to last year at $163,285.

What was the most popular area to buy a house in this month? That was Area 03 (Central / Downtown Windsor), where 79 house sales occured in the month. A total of 858 new residential listings were put on the MLS system this month, down from 900(-5%) for the same month last year. There are now 4,203 active residential listings on the MLS system.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... OCTOBER 2011 MARKET REPORT TO DATE:

Windsor and Essex County Real Estate Board MLS statistics reported in October 2011 a total of 471 residential homes were sold, up from 405(16%) for the same month last year. The average sale price of these homes was $180,202, compared to the average sale price of $179,338 a year ago, up .5%. As for home styles, Ranches were the most poplar with 83 units selling this month with an average sale price of $215,338. The second most poplar home style, Raised ranches 80 units sold with the average selling price of $213,624. 43 2 storeys (average price $252,225), 51 1.5 storeys with average sale price $127,802 and 40 Bungalows with an averaging of $113,218 also sold this month.

What was the most popular area to buy a house in this month? That was Area 04 (East Windsor), where 47 house sales occured in the month. A total of 910 new residential listings were put on the MLS system this month, down from 916(-1%) for the same month last year. There are now 4,691 active residential listings on the MLS system.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... SEPTEMBER 2011 MARKET REPORT TO DATE:

Windsor and Essex County Real Estate Board MLS statistics reported in September 2011 a total of 498 residential homes were sold, up from 471(6%) for the same month last year. The average sale price of these homes was $177,096, compared to the average sale price of $163,665 a year ago, up 8.2%. As for home styles, Ranches were the most poplar with 96 units selling this month with an average sale price of $199,198. The second most poplar home style, Raised ranches 85 units sold with the average selling price of $208,764. 54 2 storeys (average price $234,293), 46 1.5 storeys with average sale price $152,201 and 46 Bungalows with an averaging of $99,528 also sold this month.

What was the most popular area to buy a house in this month? That was Area 04 (East Windsor), where 53 house sales occured in the month. A total of 1,035 new residential listings were put on the MLS system this month, down from 1,113(-3%) for the same month last year. There are now 4,777 active residential listings on the MLS system.

CMHC RELEASE: August Housing Starts Up in August

WINDSOR, SEPTEMBER 9, 2011 – New home starts were up in August in the Windsor Census Metropolitan Area¹ (CMA) according to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC). Builders laid foundations for 73 homes compared to 50 in August 2010.

“Rising sales and fewer new listings in the resale market mean stronger housing demand is stimulating new construction in Windsor,” said Margot Stevenson, Senior Market Analyst for Canada Mortgage and Housing Corporation. “Improving employment opportunities locally resulted in stronger demand for new homes,” added Stevenson.

August starts in the Windsor area included 54 single-detached homes, four semi-detached homes and 15 townhomes. Year-to-date, builders started 280 single-detached homes, 18 semi-detached homes, 88 townhomes and eight apartments in the Windsor CMA, up three per cent from the same period in 2010. 

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... AUGUST 2011 MARKET REPORT TO DATE:

Windsor and Essex County Real Estate Board MLS statistics reported in August 2011 a total of 523 residential homes were sold, up from 476(10%) for the same month last year. The average sale price of these homes was $168,760, compared to the average sale price of $167,893 a year ago, up .5%.  As for home styles, Ranches were the most poplar with 97 units selling this month with an average sale price of $196,048. The second most poplar home style, Raised ranches 78 units sold with the average selling price of $214,520. 55 2 storeys (average price $203,700), 52 1.5 storeys with average sale price $113,143 and 56 Bungalows with an averaging of $105,748 also sold this month.

What was the most popular area to buy a house in this month? That was Area 08 (South Windsor), where 61 house sales occured in the month. A total of 1,077 new residential listings were put on the MLS system this month, down from 1,119(-4%) for the same month last year. There are now 4,897 active residential listings on the MLS system.

CMHC Release—CMHC Reports July Housing Starts Lower in Windsor

WINDSOR, AUGUST 9, 2011 – New home starts were down in July in the Windsor Census Metropolitan Area¹ (CMA) according to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC). Builders laid foundations for 56 residential units compared to 73 units in July 2010.

“The trend in single-detached construction is still upward in Windsor,” said Margot Stevenson, Market Analyst for Canada Mortgage and Housing Corporation. “Despite a small decrease in the number of single-detached homes started in July, it was still the second strongest posting for that month since 2005,” added Stevenson.

July starts in the Windsor area included 50 single-detached homes, two semi-detached homes and four townhomes. Year-to-date, builders started 226 single-detached homes, 14 semi-detached homes, 73 townhomes and eight apartments in the Windsor CMA, down three per cent from the same period in 2010.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... JULY 2011 MARKET REPORT TO DATE:

According to the Windsor and Essex County Real Estate Board MLS statistics reported in July 2011 a total of 507 residential homes were sold, up from 453(12%) for the same month last year. The average sale price of these homes was $175,420, compared to the average sale price of $171,436 a year ago, up 2.3%.  As for home styles, Ranches were the most poplar with 95 units selling this month with an average sale price of $189,356. The second most poplar home style, Raised ranches 86 units sold with the average selling price of $214,933. 71 2 two storeys (average price $242,011), 49 1.5 storeys with average sale price $128,908 and 58 Bungalows with an averaging of $86,802 also sold this month.

What was the most popular area to buy a house in this month? That was Area 04 (East Windsor), where 55 house sales occured in the month. A total of 1,071 new residential listings were put on the MLS system this month, down from 1,123(-5%) for the same month last year. There are now 4,988 active residential listings on the MLS system.

Some Home Improvements Will Pay Off Big!

If you’re planning on making a foray into the market this year, now could be the time to undertakeimprovements, which if carefully planned, can increase the value of your home considerably. Most of us know that kitchens, bathrooms and a fresh coat of paint inside and out, offer the best return on investment. According to the Appraisal Institute of Canada, you can expect to get back 75 to 100 per cent of what you put into kitchens and bathrooms. Painting can return 50 to 100 per cent of your investment. While these are typically low risk investments, a number of factors can influence the gains you achieve with other types of renovations.

It’s also important to consider your home’s most crucial needs. Window and door replacement may offer a return of 50 to 75 per cent, but if your existing units are broken, this home improvement should take priority on your project list. Where glaring needs are concerned, the value associated with your home’s overall impression outweighs specific project returns. It’s also important to consider that significant government rebates are available for many energy efficiency improvements. Energy efficient upgrades are at the top of the list of home improvements that add value to the resale price of a home.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... JUNE 2011 MARKET REPORT TO DATE:

According to the Windsor and Essex County Real Estate Board MLS statistics reported in June 2011 a total of 609 residential homes were sold, up from 570(7%) for the same month last year. The average sale price of these homes was $187,203, compared to the average sale price of $168,109 a year ago, up 11.3%.  As for home styles, Ranches were the most poplar with 101 units selling this month with an average sale price of $196,304. The second most poplar home style, Raised ranches 95 units sold with the average selling price of $218,291. 82 2 two storeys (average price $238,660), 67 1.5 storeys with average sale price $163,233 and 54 Bungalows with an averaging of $107,431 also sold this month.

What was the most popular area to buy a house in this month? That was Area 08 (South Windsor), where 65 house sales occured in the month. A total of 1,239 new residential listings were put on the MLS system this month, down from 1,334(-7%) for the same month last year. There are now 4,959 active residential listings on the MLS system.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... MARCH 2011 MARKET REPORT TO DATE:

Continued drop in residential home sales, according to the Windsor and Essex County Real Estate Board MLS statistics reported in March 2011 a total of 482 residential homes were sold, down from 515(-6%) for the same month last year. The average sale price of these homes was $153,140, compared to the average sale price of $150,632 a year ago, up 1.7%.  As for home styles, Raised Ranches were the most poplar with 82 units selling this month with an average sale price of $202,252. The second most poplar home style, ranches 82 units sold with the average selling price of $176,088. Fifty-seven bungalows(average price $89,302), 52 1.5 storeys with average sale price $111,154 and 46 two storeys houses with an averaging of $181,315 also sold this month.

What was the most popular area to buy a house in this month? That was Area 03 (Central/Downtown), where 98 house sales occured in March. A total of 1,172 new residential listings were put on the MLS system this month, down from 948(-6%) for the same month last year. There are now 4,412 active residential listings on the MLS system.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... FEBRUARY 2011 MARKET REPORT TO DATE:

I'm a little surpised at the numbers this month, I've personally experienced a busy month, but according Windsor and Essex County Real Estate Board MLS statistics reported in February 2011 a total of 276 residential homes were sold, down from 335(-17%) for the same month last year. The average sale price of these homes was $143,450, compared to the average sale price of $154,402 a year ago, down -7.6%. But, February exprienced unusally higher sales in Bungalows driving down the average sale for the month. As for home styles, Raised Ranches were the most poplar with 52 units selling this month with an average sale price of $203,682. The second most poplar home style, Bungalows 46 units sold with the average selling price of $80,745. Forty-three ranches(average price $172,835), 39 1.5 storeys with average sale price $102,891 and 38 two storeys houses with an averaging of $168,428 also sold this month.

What was the most popular area to buy a house in this month? That was Area 08 (South Windsor), where 101 house sales occured in February. A total of 899 new residential listings were put on the MLS system list month, down from 948(-5%) for the same month last year. There are now 4,373 active residential listings on the MLS system.

The government bank of Canada money market overnight rate remains 1%.  

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... JANUARY 2011 MARKET REPORT TO DATE:

Off to a fairly decent start despite government changes to the mortgage rules. The Windsor and Essex County Real Estate Board MLS statistics reported in January 2011 a total of 300 residential homes were sold, down from 319(-6%) for the same month last year. The average sale price of these homes was $160,535, compared to the average sale price of $155,998 a year ago, up 2.9%. As for home styles, Raised Ranches were the most poplar with 52 units selling this month with an average sale price of $209,207. The second most poplar home style, Ranches 45 units sold with the average selling price of $171,921. Thirty-one 2 storeys (average price $192,880), 35 1.5 storeys with average sale price $123,454 and 33 bungalows with an averaging of $93,364 also sold this month.

What was the most popular area to buy a house in this month? That was Area 03 (Downtown/Central Windsor), where 35 sales occured in January. A total of 1054 new residential listings were put on the MLS system list month, down from 1119(-6%) for the same month last year. There are now 4,196 active residential listings on the MLS system.

Changes to Mortgage Rules...........First, the government reduced the maximum mortgage amortization period from 35 to 30 years. Second, the maximum amount of the value of a home that can be re-financed will drop from 90 per cent to 85 per cent. And finally, government insurance will no longer be available to financial institutions wishing to insure home equity lines of credit. The government did not increase the minimum downpayment, which was under consideration.  

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... DECEMBER 2010 MARKET REPORT:

The Windsor and Essex County Real Estate Board MLS statistics reported in December 2010 a total of 295 residential homes were sold, down from 338(-13%) for the same month last year. The average sale price of these homes was $158,604, compared to the average sale price of $153,898 a year ago, up 3%. As for home styles, ranches were the most poplar with 49 units selling this month with an average sale price of $210,309. The second most poplar home style, Raised Ranch 40 units sold with the average selling price of $193,595. Thirty-eight 2 storeys (average price $173,467), 30 1.5 storeys with average sale price $104,811 and 29 bungalows with an averaging of $80,051 also sold this month.

What was the most popular area to buy a house in this month? That was Area 04 (East Windsor/Riverside), where 26 sales occured in December. A total of 542 new residential listings were put on the MLS system list month, down from 576(-6%) for the same month last year. There are now 4,023 active residential listings on the MLS system.

Modest gains in sales can be expected through the year 2011. Employment in the prime home buyer 25-44 year age group is still struggling to regain its strength. This segment represents the majority of the workforce in Windsorand the lack of substantial growth in 2011 will contribute to slightly lower annual sales relative to 2010. Affordability in the ownership sector continues to make Windsor an attractive market. Home prices have been slow to move up and the gap between the income required to carry a mortgage on an average priced home and actual income remains one of the most substantial of any major metropolitan area in Ontario.”

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... NOVEMBER 2010 MARKET REPORT:

According to the Windsor and Essex County Real Estate Board MLS statistics in November 2010 a total of 342 residential homes were sold, down from 348 for the same month last year. The average sale price of these homes was $161,970, compared to the average sale price of $153,548 a year ago. As for home styles, ranches were the most poplar, with 82 units selling this month with an average sale price of $180,237. The most expensive home style has the Raised Ranch 55 units sold, with the average selling price of $199,427. Forty-eight 2 storeys (average price $196,293), 46 1.5 storeys with average sale price $129,353 and 47 bungalows with an averaging of $108,357 also sold this month.

What was the most popular area to buy a house in last month? That was Area 04 (East Windsor/Riverside), where 49 sales occured in October. A total of 616 new residential listings were put on the MLS system last month. There are now 3236 active residential listings on the MLS system.
 

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... OCTOBER 2010 MARKET REPORT:

The Windsor Essex County Real Estate Board reported  the average MLS® residential sales price slightly increased 3.48% over last years September ($163,665 compared to 2009’s $158,162), while the 2010 year to date average price also increased slightly by 2.93% over last years 2009 ($161,922 compared to 2009’s $157,318). This indicates a more positive consumer confidence and a continuation of 2010’s trend toward slightly higher price ranges.

Year to date total MLS® residential units sold showed a 10.87% improvement over last year. September 2010 proved to be a slightly slower month compared to September 2009 with sales activity of all MLS® residential units decreasing by 7.8% (at 378 down from 410).

The average MLS® residential sales price slightly increased 3.48% over last September 2009 ($163,665 compared to 2009’s $158,162), while the 2010 year to date average price also increased slightly by 2.93% over 2009 ($161,922 compared to 2009’s $157,318).

The market remains active, with the total inventory of MLS® residential listings increasing 2.85% over September 2009, and 1.89% 2010 year to date. There are currently 3498 available listings at the time of this report.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... SEPTEMBER 2010 MARKET REPORT:

According to preliminary data released [Sept 9] by Canada Mortgage and Housing Corporation (CMHC), housing starts in the Windsor Census Metropolitan Area (CMA) totaled 50 units in August, down slightly from the 54 units started in August 2009. 

“This minor slowdown was to be expected,” said Margot Stevenson, Market Analyst for Canada Mortgage and Housing Corporation. “Until August, housing starts had been up from a year ago in every month of 2010, and on a year-to-date basis starts in Windsor are 74 per cent ahead of their 2009 level,” added Stevenson.

Single-detached homes represented the majority of all starts in the Windsor area in August 2010. They reached 39 units, unchanged from August 2009. Construction also began on four semi-detached homes and seven townhomes. Year-to-date, builders started 305 single-detached homes, 14 semi-detached homes, 47 townhouse units and 16 apartment units in the Windsor CMA, up 74 per cent from the same period in 2009.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... AUGUST 2010 MARKET REPORT:

Location, location, location. Ask any REALTOR® and he or she will agree that where you buy your home can be as important as how big it is, what it looks like and how much it costs.

One of the many valuable services a REALTOR® provides is helping homebuyers find the right neighborhood for them. A REALTOR® will work with you to develop a list of “needs” and “wants” as part of the overall home buying process.

Determine your priorities

It’s a good idea to write down your needs and wants for your new neighborhood and develop a checklist to take with you. Obviously your budget will play a large role in determining where you end up buying. For example, your money may buy a lot more house in the county than it will in the city. But other things like the style of home you want, desired features and amenities will also factor in.

You’ll need to ask yourself a few questions to pinpoint your desires.

• Do you need to be close to your workplace or are you willing to commute?

• Do you need to be close to a major hospital, school or place of worship?

• What is your main mode of transportation? Do you need easy access to public transportation or would you like to be able to walk to the corner store?

• What activities are you involved in? Do you want the quieter lifestyle of a rural setting or do you prefer the action?

Once you’ve completed this exercise, you can begin checking out possible neighborhoods that meet your criteria. Be sure to always keep affordability in mind so you don’t get carried away and overextend yourself financially.

If you’re a first-time buyer, your REALTOR® will have tips and advice on how to afford your first home. He or she can help you locate “starter homes” or even a “handyman special” in your desired neighborhood that could be more economical if you are willing to put in some elbow grease to fix it up.

Do your homework

Once you’ve located the neighborhood you want, spend some time there to get a “feel” for it. Be sure to visit at different times to see what traffic is like and how quiet or noisy it is at times. Check out the properties to see how well (or not so well) kept they are. Usually when the majority of homes are tidy and kept up it’s a good sign that there is a sense of pride and community among the neighbors.

Still like it there? If so, you’re ready to have your REALTOR® show you available properties. A REALTOR® has access to vast amounts of property information and can provide you with a comparison of selling prices in the area. Armed with all the information you’ve provided, your REALTOR® will develop a “short list” of homes in the neighborhood that best match your need, wants and your budget.

The following checklist from The Windsor-Essex County Real Estate Board may be helpful in determining your location priorities. Identify each preference with an “N” or a “W” for needs and wants, and add others that are important to you, and then contact your REALTOR®.

• Nearby facilities

• Quiet street

• Shopping within walking distance or short drive

• Parks or playgrounds

• Golf course nearby

• Skating rinks

• Restaurants

• Theatres

• Community centre

• Public swimming pool/tennis courts

• Public library

• Places of worship

• Services

• Police/Fire department

• Day care

• Snow removal

• Hospital/Medical (doctors, dentists etc.)

• Transportation

• Close to work

• Near major highway

• Near public transportation

• Schools

• School operated transportation available

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... JULY 2010 MARKET REPORT:

Did you know?

- Canada turns 143 this year!

- The name “Canada” comes from a St. Lawrence Iroquoian word, kanata, which means village or settlement.

- Every major city and town in Canada is on a river or lake. This dates back to the days of the Hudson’s Bay company and the fur trade.

- Canada is home of the longest street in the world! Yonge Street starts at Lake Ontario and runs through central/northern Ontario to the Ontario/Minnesota border. That’s over 1896 kilometers!

- Canada is also home to the longest highway in the world. The Trans Canada Hwy runs from Victoria, British Columbia to St. Johns, Newfoundland. That’s 7821 kilometers!

- Many inventions including basketball, the electric range, the electron microscope, the telephone, standard time, the television, the zipper, the first snowmobile, and the baseball glove were invented in Canada.

- Canadians consume more macaroni and cheese than any other nation on earth.

- Canada holds the record for the most GOLD MEDALS (14) ever won at the Winter Olympics!

HAPPY CANADA DAY!

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... JUNE 2010 MARKET REPORT:

I choose a Long-term or Short-term Mortgage?

Whether to go for a short- or long-term mortgage is an important decision in the real estate buying process. You need to weigh the pros and cons of each and decide what’s best for your situation before you go out to purchase real estate or refinance.

Unfortunately, too many people let their interest rate crystal ball dictate whether they should take a short- or long-term mortgage. For example, those who think interest rates can only go up find long-term mortgages attractive.

When many people are trying to decide between a short- and long-term mortgage, they focus on how much they can save over the next little while, and then factor in their sense of whether interest rates will rise in the future.

Much more important, though, is to get a sense of each option’s total cost over the full life of your loan. Several studies have assessed how homeowners would have fared if they either continually renewed a short-term mortgage or stuck with five-year terms. Going back to 1980 when short-term mortgages were first made available, the studies found that 85 to over 90 per cent of the time, the least expensive choice was to continually roll over a short-term mortgage.

In order for a series of short-term mortgages to cost more than a five-year term, interest rates over that time must rise enough so that the one-year rate increases beyond the five-year rate, and stays there for a good percentage of that time.

You also need to consider how comfortable you are with the extra uncertainty that choosing short-term mortgages brings.

How much of a gamble can you take with the size of your monthly mortgage payment? For example, if your job and income are unstable and you need to borrow an amount that stretches your monthly budget, you can’t afford much risk. If you’re in this situation, you may want to stick with a long-term mortgage.

If you’re in a position to take the financial risks associated with mortgage payments that may change every six months or year, you have a better chance of saving money with a shorter-term mortgage. Your interest rate starts lower and stays lower when the overall level of interest rates stays unchanged. Even if rates go up, there’s a good possibility they will come back down over the life of your loan. Sticking with your short-term mortgage for better and for worse will likely help you come out ahead in the long run.

A short-term mortgage makes more sense if you borrow less than you’re qualified for. Or perhaps you can save a sizable chunk – more than 10 per cent – of your monthly income. If your income significantly exceeds your spending patterns, you may feel less anxiety about fluctuating interest rates. If you do choose a short term, you may feel more financially secure if you have a hefty financial cushion (at least six months’ to as much as a year’s worth of expenses reserved) that you can access if rates go up.

Don’t take a short-term mortgage because the lower interest rate allows you to afford the property you want to buy (unless you’re absolutely certain your income will rise to meet possible future payment increases). Try setting your sights on a property you can afford to buy with a longer-term mortgage.

For more information regarding financing, call for a referral to one of our expert mortgage specialists.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... MAY 2010 MARKET REPORT:

The Windsor Essex County spring real estate market is here and it will is a busy one.

Compliments of Ron Klingbyle, Top Producer Real Esate Agent for Windsor and Essex County.

WINDSOR IN THE NEWS...... APRIL 2010 MARKET REPORT:

As you may know, the Ontario Government has enacted legislation which will implement the much-dreaded HST Tax. This new tax will take effect on July 1, 2010.

The HST tax will effectively combine the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new “harmonized” total tax of 13% percent. This new tax will be applicable to many real estate services which hitherto only had one or the other tax applied.

The HST will result in a 13% tax on new home construction, but my post today will concern those ancillary costs pertaining to the buying and selling of resale residential real estate properties in Ontario…

First, the good news….there is no HST tax payable on the sale of a resale home (residential). So the single largest dollar amount exchanged is not taxable under HST.

However, under the harmonized sales tax (HST), home buyers and sellers will have to pay extra tax on a range of services associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services.

In a nutshell, after July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay – currently there is only the 5% percent GST payable on this fee. Your lawyer’s fee will also be subject to the 13% percent HST, as will the cost of a Condominium Status Certificate.

If you are a buyer, any Home Inspection you pay for will be subject to the 13% percent HST. And so will the cost of movers hired. In addition, the cost of the CMHC premium for “high-ratio” mortgages has traditionally been taxable for PST – this amount will now be taxable for the full 13% percent HST.

So one can see that, with the introduction of the HST, whether you are buying or selling a Resale Home in Ontario, costs will be going up.

A press release from the Ontario Real Estate Association earlier this year summarized some of these changes which will take place – the example that they used was for a resale house priced at $360,000, and it was determined that the HST would add over two thousand dollars in new taxes to closing costs. Please note, these taxes are in addition to the Land Transfer Taxes which exist for both the Province and the City of Toronto. OREA calculated that, in total, the HST would add $313 million annually in new taxes to resale home transactions.

CURRENT TAXES PAID, VERSUS THE NEW COMBINED HST TAX PAYABLE, ON A HYPOTHETICAL $360,000 REAL ESTATE TRANSACTION:

Current Tax | New Tax | Total HST Payable

Mortgage Insurance Premiums(1) $752.40 | $470.25(2) | $1222.65

Legal Costs $50.00 | $80.00 | $130.00

Real Estate Commission(3) $900.00 | $1,440.00 | $2,340.00

Home Inpection $20.00 | $32.00 | $52.00

Title Insurance $24.00 | $15.00 | $39.00

Total New Tax: $2,037.25

(1) CMHC premium of 2.75% for mortgage with a 5% down payment on a $300,000+ home.

(2) Consumers currently pay the 8% PST on mortgage insurance premiums.

(3) Real estate commissions are negotiable – 5% used in this example.

(4) Ministry of Finance, Public Accounts, 2007/2008.

(5) Altus Group, “Economic Impact of MLS(R) Home Sales,” June 12, 2007.

The HST Ontario Tax will add to the cost of buying and selling a resale home. Many market watchers are predicting a flurry of activity leading up to the July 1, 2010 implementation date, as buyers and sellers both try to avoid paying the tax.

IMPORTANT DATES

May 1, 2010• – the HST will apply to amounts that are paid or payable on or after this date for goods or services
provided on or after July 1, 2010.
July 1, 2010• – the HST rate will be 12% (5% federal + 7% provincial). The PST will be eliminated.
July 1, 2010 • – the HST will not apply to a service where most (90% or more) is completed before July 2010.

Compliments of Ron Klingbyle  a full time top producer professional Realtor serving Windsor and the surrounding Essex County Community Areas. If you're thinking of Buying or Selling a home, investment or commercial property or relocating to the Windsor / Essex County Area? Contact me I can help, let my consistent, proven accomplishments and lifetime experience in real estate go to work for you. 

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