Sometimes you just have to sit back and reflect on how great a nation we really are: Our vast lands and resources, our beautiful cities, our multiculturalism, and our history of just doing what’s right. I think that this short video by Tom Brokaw, a well known American news anchor, does us all justice. I feel proud to be Canadian, and I think we should all take a wee bit of this presentation to whatever place we go individually to feel our pride. But not for long though, because after all, we are Canadian!!
Watch this Video…
This was a hot link until February 27th, at which time NBC (Tom Brokaw’s employer) claimed copyright privledges and completely cut off access to the video on both UTube and the NBC web site. Such pettiness on behalf of the “Corporate Suits” who just have no appreciation for the concept of a “Good Neighbour”.
Posted by: Gary Grant @ 2:04 pm
There was this elderly man who had a profitable little business selling hot dogs on a busy street corner in a major city. He wasn’t particularly well educated, but he sold great hot dogs and his customers loved him.
During the early morning rush hour, he’d wheel his mobile hot dog stand to position it near the exit of the central railway station in town. A year ago he’d added a bacon and egg roll to his range and sold scores of them to this breakfast crowd every day. At lunchtime, he’d move his stand to a popular park where he had lines of regulars.
In the afternoon he’d be back at the station entrance and then later most nights he knew a great spot near a nightclub where young patrons rushed him off his feet. He had even installed special lighting and a flashing neon sign. Even people driving by would stop.
He’d worked hard for years and done well enough to put his only son through university who later became an accountant with a large accounting firm.
One day his son warned him that a recession was on the way. The old man asked his son what this meant. Being an educated man his son gave a very detailed explanation of how the recession would severely impact everyone in the community, particularly small business people like his father. There would be enormous unemployment; people would not be able to afford to spend money as they did now. He painted a gloomy picture of the future and warned his father that it would be wise to cut back on his expenses and “tighten his belt” financially and prepare for the worst. The old man didn’t know much about the economy or interest rates, but he trusted his son. After all, he was an educated man. Recession mentality kicked in.
The old man began to cut back on the quantity of sausages and bread rolls he bought. He didn’t want to get caught with stale rolls as business began to drop off. But it was hard to judge and some days he actually ran out of sausages and rolls earlier than he normally would. So he went home early and spent more time worrying about this recession that was coming.
Soon he knew that what his son had said was right. He noticed that his takings were indeed falling. This depressed him more and so he tended to get out of bed later each day. After all, why get to the station so early when obviously more people would be eating at home rather than spending money on breakfast in the city. He decided that his bacon and egg rolls were too expensive for most people now. After all, they were twice the price of a hot dog, so he cut them from his menu and his sales continued to plummet.
Wow, his son was right, this recession was hitting hard!
He decided to save more money and not replace the batteries that powered his neon sign and lights at night. Now because he was in the dark, fewer people bought from him and soon he decided that it wasn’t even worth his time setting up at night. Eventually he decided to sell off his equipment and his trolley. He was in luck though because the young woman who bought his trolley didn’t seem to know how bad business was, or how severe the recession was going to be. He managed to unload the trolley for more than he thought he would get. Now day after day he stayed at home, depressed, and occasionally his son would visit him and they would discuss how bad the recession was, and how lucky the old man had been to have an educated son who had warned him in advance about this terrible recession.
So what’s the moral of this story?
Recession mentality starts in one’s own head. If you believe that a recession is coming and that times will soon be tough, then they will be for you. Like the old man in the story, you’ll start to change your successful behaviour patterns and replace them with less resourceful habits. You’ll sleep in later. You’ll take longer lunch breaks, make less phone calls and go home earlier.
But it needn’t be that way… Walk to Your Own Drummer!
Posted by: Gary Grant @ 11:48 am
Continuing the trend established during the past nine consecutive months, residential unit volume in the month of January exceeded the prior year by approximately 57%, and average residential values showed a year over year increase of about 3.3% to $269,317. However, one should remember that these statistics represent just one month of activity into the current year, and should be expected, given the distressed situation in the market in January 2009. However, when taken in context with the overall trend of the past nine months, these results are encouraging and are certainly representative of the general “health” of the local market. In spite of the trend towards a lower inventory of available properties, we are fortunate to have a market which represents more of a “balanced” environment as opposed to a “buyer’s” or “seller’s” market, which in either case, is a precursor of roller coaster swings in market prices. In the main, I continue to believe that our area will experience moderate growth and general pricing stability.
The introduction in Ontario of the Harmonized Sales Tax will result in additional closing costs to both buyers and sellers. It is estimated that this increase will amount to about $1,500.00 to the average home sale in the Barrie area. While this increase should, and cannot be considered an insignificant amount, it is like all taxes… “A Fact of Life”…and over time, will simply become part of the pricing equation for both buyers and sellers. This increase represents less than a half of one percent, and pales in comparison to the general market price increases which we have experienced over the past ten years (about 5.7% per year). However, for those who are planning on making a move this year, taking action prior to about the beginning of May is probably wise. This will allow for the lapsed time between the negotiating of the agreement and the date of closing, which must be before July 1st … the effective date of the new tax.
The Federal Government has just announced new home financing controls which must be followed by the banking sector, the intent of which is to ensure that Canada continues to be the “world example” to emulate in mortgage financing… avoiding the pitfalls which other nations… most notably the United States… have experienced, and which played a major role in the current world wide economic recession. Stand up and say “Hurray” for us… we have put long term “prudence” ahead of “short term profit” in our housing and financial markets.
These new changes, essentially tighten up some mandatory debt service ratios and application criteria used by the lending institutions when an application for a mortgage is processed. This will have the potential to reduce the number of approved applications for a first mortgage, but will also have the effect of keeping these same applicants out of financial distress in the longer term, and therefore, will result in their re-application at a later date when their financial wherewithal has improved. Specifically, the following is the generalities of the main criteria announced by the Federal Government of Canada. The three big changes:
1. Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and a shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
2. Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90% from 95% of the current value of their homes. This will ensure that home ownership is a more effective way to save.
3. Require a minimum down payment of 20% for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation (investments)
Minister of Finance, Jim Flaherty, stated that “there’s no clear evidence of a housing bubble, but we’re taking proactive, prudent and cautious steps to help prevent one.” (What he didn’t say was… “After all, we are Canadian!!!”)
Forward Predictions for the Barrie Area Market:
As we move further into this new decade, the monthly unit volume in 2010 will continue to equal or exceed the prior year values, and prices will increase marginally. Properties which are priced reasonably and present themselves well, will sell better than those which are simply relying on low prices to attract a buyer. Recreational and Specialty Properties will continue to be in demand, since they have a limited supply, but will take longer to sell and/or will be sold at values lower than previously. The introduction of the GO Service to Barrie, the general affordability of the Barrie area, and the imposition of a double land transfer tax system in the Greater Toronto Market will continue to fuel unit growth in the entire area in the short and longer term.
First time buyers will continue to play an important role in fuelling the growth of the local market. As a result, there is a dependence on the continuation of low mortgage interest rates. Rates continue to reside at the lowest levels in decades allowing more and more of this group to qualify for financing. Their influence on the market is significant since they create the initial impetus for move-up buyers to sell and then re-buy with a resulting multi-level chain of ownership changes. In addition, this move up phenomenon has the effect of strengthening market values in both the short and long terms.
The City of Barrie has been designated by the Province of Ontario as a Growth Centre, and Buyers coming to the area can still expect to find a wide range of housing options at affordable prices With average prices at least $175,000 below comparable metropolitan Toronto values, buyers from the greater metro area will find a refreshing negotiating environment where reasonable offers are entertained by Sellers, multiple offers are the exception, and local REALTORS® work “around the clock” to bring the Agreement together. The availability of rental housing has improved, but with mortgage interest rates at record low levels, and 95% financing available, the option to buy makes economic sense for everyone.
Posted by: Gary Grant @ 11:42 am
Following a lacklustre first quarter, the Barrie Real Estate Market rebounded in April and returned to growth patterns of previous periods, including the setting of some new record volume months, never before experienced. The total year end unit volume resulted in an increase of more than 6¼% over the prior year. This increase mirrored results experienced throughout most regions of Canada and demonstrated the strength of the Real Estate Industry in comparison to other sectors of the economy which continued to suffer the effects of the world wide economic downturn.
It also proved once again, that the negative media coverage which extended during the fall of 2008 and into the first quarter of 2009, did not dampen the basic desire of many Canadians to continue to search out and purchase homes suited to their needs and lifestyle requirements, in spite of the press and other negative influences.
While volume increased, new listings decreased by about 7% from the 2008 levels to 9,120 units. Average residential values remained constant through the course of the year at approximately $264,000.00, and homes listed for sale took 60 days on average to sell, or about 5 days longer than in 2008.
Approximately 55% of the total unit sales volume in the Barrie market occurred in the range from $200,000 to $300,000, with the balance spread over price points on either side of this range. These statistics are consistent with those experienced during the entire year of 2008; a pattern consistent with the generally level average sales prices experienced during both years.
Forward Predictions for the Barrie Area Market:
As we move into this new decade, the monthly unit volume in 2010 will continue to equal or exceed the prior year values, and prices will increase marginally. Properties which are priced reasonably and present themselves well, will sell better than those which are simply relying on low prices to attract a buyer. Recreational and Specialty Properties will continue to be in demand, since they have a limited supply, but will take longer to sell and/or will be sold at values lower than previously. The introduction of the GO Service to Barrie, the general affordability of the Barrie area, and the imposition of a double land transfer tax system in the Greater Toronto Market will continue to fuel unit growth in the entire area in the short and longer term.
The introduction in Ontario of the Harmonized Sales Tax will result in additional closing costs to both buyers and sellers. It is estimated that this increase will amount to about $1,500.00 to the average home sale in the Barrie area. While this increase should and cannot be considered an insignificant amount, it is like all taxes… “A Fact of Life”…and over time, will simply become part of the pricing equation for both buyers and sellers. This increase represents less than a half of one percent, and pales in comparison to the general market price increases which we have experienced over the past ten years (about 5.7% per year). However, for those who are planning on making a move this year, taking action prior to about the beginning of May is probably wise. This will allow for the lapsed time between the negotiating of the agreement and the date of closing, which must be before July 1st … the effective date of the new tax.
First time buyers will continue to play an important role in fuelling the growth of the local market. As a result, there is a dependence on the continuation of low mortgage interest rates. Rates continue to reside at the lowest levels in decades allowing more and more of this group to qualify for financing. Their influence on the market is significant since they create the initial impetus for move-up buyers to sell and then re-buy with a resulting multi-level chain of ownership changes. In addition, this move up phenomenon has the effect of strengthening market values in both the short and long terms.
The City of Barrie has been designated by the Province of Ontario as a Growth Centre, and Buyers coming to the area can still expect to find a wide range of housing options at affordable prices With average prices at least $175,000 below comparable metropolitan Toronto values, buyers from the greater metro area will find a refreshing negotiating environment where reasonable offers are entertained by Sellers, multiple offers are the exception, and local REALTORS® work “around the clock” to bring the Agreement together.
The availability of rental housing has improved, but with mortgage interest rates at record low levels, and 95% financing available, the option to buy makes economic sense for everyone.