Cambridge Real Estate News

Early Spring Fling

2010-02-26T14:13:00.002-05:00

Here we are in 2010 and it's busy much earlier than usual. Our market usually picks up in March when the weather improves but this year, February has been very active. Many first time buyers are concerned about the impending mortgage restrictions, and everyone is trying to avoid the HST cost increase on July 01. If you're thinking of selling, now's the time and if you are buying, it's probably a good thing to start early this year as inventory is low and prices have already started to rise.

Economic update

2009-05-10T01:27:00.003-04:00

It's been a little while since my last post and unfortunately, there still isn't any significant improvement in the local market. Sure, there are some small signs of change but the reality is that there are still many more homes listing than selling.

Interest rates are close to the bottom (how much lower could they really go??). You can now borrow at 3.59% for a 5 year fixed mortgage!!

First time buyers continue to be the most active, but most buyers continue to take their time and are way more cautious than in recent years. Buyers are also very aware that they have the bargaining power and are using that to their advantage in a significant way.

Buyer activity levels are so low that it can be difficult to really determine whether it would be practical to wait (from a seller's point of view) for a market improvement, or to go for the price reduction and motivate your property, then feel uncertain as to whether it would have been better to wait the market out. Most sellers are very conflicted at this time and I believe the majority are simply waiting for the turnaround rather than dropping their price and regretting it later, even though the price on the next home they plan to purchase is similarly low....

Again, I think most of the people I know and consult with, acknowledge that while we still have a weak market, there are some positive signs in the economy and are hopeful for a turnaround later this year or early next year.

2009-03-29T01:22:00.002-04:00

My last post discussed the weather and the expectation that things would improve. We have, in the last week written three offers which resulted in us having competing offers. This definitely indicates a strengthening of the market. Rates are now at an almost unbelievable 3.82% for a 5 year fixed mortgage. This is a rate that hasn't been seen for 50 years. Cheap money!!
There are still many signs of difficult economic times, however not all markets are suffering to the same degree. Imagine living in Windsor where it is now possible to buy a home for as little as $25,000.00. The only problem with that is that the economy in Windsor is very dependent on the auto sector and we all know what is wrong there!! Let's hope the government and the unions figure out how to keep the big 3 in business.

2009-03-16T22:40:00.000-04:00

It's been a while but here we go:
The weather has improved considerably in the last week and Sunday was bright, sunny and warm (relatively speaking!!). I spent the time from 2PM to 4PM as usual in an open house and there was a definite improvement in the number of people who showed up and also the general outlook was quite positive. I know we always get the blame for continually trying to put a positive "spin" on everything, however homes continue to sell regardless of what the economists tell you. Yes - volumes are down but we are coming out of the winter blahs and the low interest rates combined with very attractive pricing seems to be having a significant effect on the market. Only time will tell, but I suspect the Cambridge market is doing somewhat better than the news media would lead you to believe. Watch this space and see what April brings.

2009-02-04T21:23:00.000-05:00

We're in, up and running. We have finally moved in to our new building. Still a few teething problems but all in all it's a nice thing to have a brand new office and proper ventilation and lighting. All we need now is for the market to pick up a little and it seems it might just do that! Open houses are seeing increased attendance and we're getting more client calls indicating a desire to buy or sell. We'll see what happens when the warmer weather returns. In the meantime, it's the early bird (certainly the hardy ones) getting the worms....

2009-01-29T02:02:00.000-05:00

2 days to go and we're moving in to our new offices at 766 Hespeler Road (beside the Hilton). The weather unfortunately isn't co-operating, but it will be nice to be in a new building with proper ventilation and lighting. If you've been following the local real estate scene lately, you'll know that we're the largest RE/MAX franchise in Canada and we're now also the largest Real Estate office in Cambridge. We've increased the number of Realtors in our Cambridge office by more than 20 people in the last month or so. I think moving will be pretty hectic as everyone tries to get set up and continue to work (we work a lot on weekends you know!).
Watch for our new signs in the area.

2009-01-27T00:49:00.000-05:00

First time homebuyers - it's time to buy now. The economy in Canada is nowhere near as bad as the US. If you have a job and you're secure there, then think about this:
A $250,000 home in Jan/Feb 2008 with 95% financing was $1,581.69/month
Today, that same home in Jan/Feb 2009 with 95% financing is $1,333.07/month
That's a difference of $248.62 every month or a total of $14,917.20 over the typical 5 year term.
If you also take in to account the fact that many homes in the mid to high 200's are down in price by $30,000 to $40,000, these homes now carry for about $450.00 per month less than just a year ago. If you're thinking of buying and have been putting it off, don't put it off any longer.