Monday, August 22, 2011
more from the battle!
TREB Official Response to Competition Commissioner - TREB Continues to Fight for Consumers’ Privacy Rights
Toronto, August 19, 2011 – For the first time since being challenged by the Competition Commissioner, The Toronto Real Estate Board (TREB) today was able to officially reinforce its commitment to protect consumers by filing its Response to the Amended Notice of Application to the Competition Tribunal.
“We have patiently and tolerantly waited for the opportunity to respond to the Competition Bureau, and today we filed a Response rejecting the Commissioner’s position and outlining why we believe the Application has no merit,” said Toronto Real Estate Board President Richard Silver.
“TREB is committed to upholding the quality of the MLS® system, while protecting the privacy and other rights of consumers who list and purchase their homes in the Greater Toronto real estate market.”
TREB believes strongly in open competition within a housing market where consumers can be ensured privacy and quality. As planned, TREB has followed through on its commitment to provide REALTOR® Members with greater flexibility to serve their clients by developing a Virtual Office Website (“VOW”) policy.
The VOW policy will allow for secure password-protected websites designed to allow consumers to search and display MLS® listing data, with the benefit of a REALTOR® Member’s oversight, supervision, and accountability.
The Commissioner is pressuring TREB to release private data about individual consumers openly on the internet. This could include personal contact and financial information including sale prices. TREB believes that would be reckless and a violation of the law and will harm consumers in the process of buying and selling real estate.
“Not only does the Commissioner’s Amended Notice of Application continue to endanger the privacy rights of consumers, but we do not believe it can succeed under the Competition Act. The Commissioner’s Amendment is unnecessary posturing for publicity. Consumers simply deserve better,” said Mr. Silver.
TREB continues to take action on behalf of consumers and its REALTOR® Members to ensure the highest quality of safe and secure service within the Greater Toronto real estate market.
Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 32,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada’s largest real estate board.
Toronto, August 19, 2011 – For the first time since being challenged by the Competition Commissioner, The Toronto Real Estate Board (TREB) today was able to officially reinforce its commitment to protect consumers by filing its Response to the Amended Notice of Application to the Competition Tribunal.
“We have patiently and tolerantly waited for the opportunity to respond to the Competition Bureau, and today we filed a Response rejecting the Commissioner’s position and outlining why we believe the Application has no merit,” said Toronto Real Estate Board President Richard Silver.
“TREB is committed to upholding the quality of the MLS® system, while protecting the privacy and other rights of consumers who list and purchase their homes in the Greater Toronto real estate market.”
TREB believes strongly in open competition within a housing market where consumers can be ensured privacy and quality. As planned, TREB has followed through on its commitment to provide REALTOR® Members with greater flexibility to serve their clients by developing a Virtual Office Website (“VOW”) policy.
The VOW policy will allow for secure password-protected websites designed to allow consumers to search and display MLS® listing data, with the benefit of a REALTOR® Member’s oversight, supervision, and accountability.
The Commissioner is pressuring TREB to release private data about individual consumers openly on the internet. This could include personal contact and financial information including sale prices. TREB believes that would be reckless and a violation of the law and will harm consumers in the process of buying and selling real estate.
“Not only does the Commissioner’s Amended Notice of Application continue to endanger the privacy rights of consumers, but we do not believe it can succeed under the Competition Act. The Commissioner’s Amendment is unnecessary posturing for publicity. Consumers simply deserve better,” said Mr. Silver.
TREB continues to take action on behalf of consumers and its REALTOR® Members to ensure the highest quality of safe and secure service within the Greater Toronto real estate market.
Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 32,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada’s largest real estate board.
Wednesday, August 17, 2011
crea predicts.... Collingwood Real Estate remains
CREA Updates Resale Housing Forecast
OTTAWA – August 16, 2011 – The Canadian Real Estate Association (CREA) has revised its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations for 2011 and 2012.
Overall, sales activity and prices remained stronger than expected in the second quarter. Sales momentum was also better than expected heading into the third quarter. As a result, the 2011 national forecasts for sales activity and average price have been raised slightly.
National sales activity is forecast to reach 450,800 units in 2011, up less than one per cent from levels in 2010. CREA had previously forecast a decline of about one per cent for activity in 2011. Erosion in affordability due to higher prices has prompted a small downward revision to the outlook for sales in 2012.
British Columbia’s 2011 sales forecast has been revised slightly higher, in recognition that home sales there appear to have bottomed out sooner than previously anticipated. Stronger than expected activity in Ontario offset slightly softer than anticipated demand in Quebec, Manitoba, and Newfoundland in the second quarter of 2011. Accordingly, the Ontario sales forecast for 2011 has been raised, while the outlook for activity in Quebec, Manitoba, and Newfoundland has been revised lower.
National sales activity in 2012 is forecast to ease seven tenths of a percentage point to 447,700 units, which is roughly on par with its ten-year average.
“While there had been some talk of potential interest rate increases, that hasn’t happened,” said Gary Morse, CREA President. “In fact, rates have actually come down, and are now expected to remain low for the remainder of this year and into 2012. It’s a great opportunity to purchase a property with financing at very favourable rates.”
The national average home price is forecast to rise 7.2 per cent in 2011 to $363,500. This is an increase from the previous forecast, reflecting continued strong price growth in Vancouver in the second quarter of 2011 and acceleration in prices elsewhere, particularly Toronto. These two markets exert an outsized influence on the national average due to their relatively high level of activity and average price.
The national average home price is expected to moderate in the second half of 2011, returning to normal following a heavily skewed start to the year. In the first half of 2011, the national average home price was pushed upward by a surge in multi-million dollar sales in selected areas of Greater Vancouver and a higher than normal share of overall sales in more expensive markets.
“Some of the expected moderation in the national average price is seasonal, with average price peaking in many local markets during the second quarter of any year,” said Gregory Klump, CREA’s Chief Economist. “Elevated shares of provincial and national sales activity in Vancouver and Toronto are also expected to return to more normal levels, contributing to an anticipated moderation in average price in British Columbia, Ontario, and nationally.”
“Additional new listings are anticipated to result in a more balanced resale housing market in most provinces,” said Klump. “The national average price is forecast to stabilize in 2012, although at a slightly higher level than previously expected.”
Page 2
For more information, please contact:
Pierre Leduc, Media Relations
The Canadian Real Estate Association
613-237-7111 or 613 884-1460
Email: pleduc@crea.ca
Page 3
CREA Residential Market Forecast:
Sales Activity Forecast 2010 2010 Annual Percentage Change 2011 Forecast 2011 Annual Percentage Change 2012 Forecast 2012 Annual Percentage Change Canada
446,936
-3.9
450,800
0.9
447,700
-0.7 British Columbia
74,640
-12.2
77,000
3.2
76,000
-1.3 Alberta
49,723
-13.6
53,350
7.3
57,000
6.8 Saskatchewan
10,872
-2.0
11,450
5.3
12,000
4.8 Manitoba
13,164
0.6
13,550
2.9
13,800
1.8 Ontario
195,591
-0.1
195,300
-0.1
188,600
-3.4 Quebec
80,052
1.2
77,000
-3.8
77,050
0.1 New Brunswick
6,702
-4.3
6,800
1.5
6,800
0.0 Nova Scotia
10,036
0.1
10,100
0.6
10,200
1.0 Prince Edward Island
1,487
5.9
1,480
-0.5
1,480
0.0 Newfoundland
4,236
-4.1
4,250
0.3
4,350
2.4
Average Price Forecast 2010 2010 Annual Percentage Change 2011 Forecast 2011 Annual Percentage Change 2012 Forecast 2012 Annual Percentage Change Canada
339,046
5.8
363,500
7.2
363,600
0.0 British Columbia
505,178
8.5
564,700
11.8
554,800
-1.8 Alberta
352,301
3.1
357,500
1.5
364,000
1.8 Saskatchewan
242,258
4.0
255,500
5.5
256,800
0.5 Manitoba
222,132
10.3
234,700
5.7
247,100
5.3 Ontario
342,245
7.5
365,200
6.7
365,500
0.1 Quebec*
248,697
8.0
261,300
5.1
269,800
3.3 New Brunswick
157,240
1.5
159,500
1.4
159,500
0.0 Nova Scotia
206,186
4.8
209,800
1.8
211,700
0.9 Prince Edward Island
147,196
0.8
147,500
0.2
148,300
0.5 Newfoundland
235,341
14.0
247,600
5.2
252,800
2.1
* Provincial weighted average price for Quebec; does not affect unweighted national average price calculations. Information on Quebec's weighted average price calculation can be found at: http://www.fciq.ca/immobilier-statistiques-definitions.php
About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 100,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations
OTTAWA – August 16, 2011 – The Canadian Real Estate Association (CREA) has revised its forecast for home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards and Associations for 2011 and 2012.
Overall, sales activity and prices remained stronger than expected in the second quarter. Sales momentum was also better than expected heading into the third quarter. As a result, the 2011 national forecasts for sales activity and average price have been raised slightly.
National sales activity is forecast to reach 450,800 units in 2011, up less than one per cent from levels in 2010. CREA had previously forecast a decline of about one per cent for activity in 2011. Erosion in affordability due to higher prices has prompted a small downward revision to the outlook for sales in 2012.
British Columbia’s 2011 sales forecast has been revised slightly higher, in recognition that home sales there appear to have bottomed out sooner than previously anticipated. Stronger than expected activity in Ontario offset slightly softer than anticipated demand in Quebec, Manitoba, and Newfoundland in the second quarter of 2011. Accordingly, the Ontario sales forecast for 2011 has been raised, while the outlook for activity in Quebec, Manitoba, and Newfoundland has been revised lower.
National sales activity in 2012 is forecast to ease seven tenths of a percentage point to 447,700 units, which is roughly on par with its ten-year average.
“While there had been some talk of potential interest rate increases, that hasn’t happened,” said Gary Morse, CREA President. “In fact, rates have actually come down, and are now expected to remain low for the remainder of this year and into 2012. It’s a great opportunity to purchase a property with financing at very favourable rates.”
The national average home price is forecast to rise 7.2 per cent in 2011 to $363,500. This is an increase from the previous forecast, reflecting continued strong price growth in Vancouver in the second quarter of 2011 and acceleration in prices elsewhere, particularly Toronto. These two markets exert an outsized influence on the national average due to their relatively high level of activity and average price.
The national average home price is expected to moderate in the second half of 2011, returning to normal following a heavily skewed start to the year. In the first half of 2011, the national average home price was pushed upward by a surge in multi-million dollar sales in selected areas of Greater Vancouver and a higher than normal share of overall sales in more expensive markets.
“Some of the expected moderation in the national average price is seasonal, with average price peaking in many local markets during the second quarter of any year,” said Gregory Klump, CREA’s Chief Economist. “Elevated shares of provincial and national sales activity in Vancouver and Toronto are also expected to return to more normal levels, contributing to an anticipated moderation in average price in British Columbia, Ontario, and nationally.”
“Additional new listings are anticipated to result in a more balanced resale housing market in most provinces,” said Klump. “The national average price is forecast to stabilize in 2012, although at a slightly higher level than previously expected.”
Page 2
For more information, please contact:
Pierre Leduc, Media Relations
The Canadian Real Estate Association
613-237-7111 or 613 884-1460
Email: pleduc@crea.ca
Page 3
CREA Residential Market Forecast:
Sales Activity Forecast 2010 2010 Annual Percentage Change 2011 Forecast 2011 Annual Percentage Change 2012 Forecast 2012 Annual Percentage Change Canada
446,936
-3.9
450,800
0.9
447,700
-0.7 British Columbia
74,640
-12.2
77,000
3.2
76,000
-1.3 Alberta
49,723
-13.6
53,350
7.3
57,000
6.8 Saskatchewan
10,872
-2.0
11,450
5.3
12,000
4.8 Manitoba
13,164
0.6
13,550
2.9
13,800
1.8 Ontario
195,591
-0.1
195,300
-0.1
188,600
-3.4 Quebec
80,052
1.2
77,000
-3.8
77,050
0.1 New Brunswick
6,702
-4.3
6,800
1.5
6,800
0.0 Nova Scotia
10,036
0.1
10,100
0.6
10,200
1.0 Prince Edward Island
1,487
5.9
1,480
-0.5
1,480
0.0 Newfoundland
4,236
-4.1
4,250
0.3
4,350
2.4
Average Price Forecast 2010 2010 Annual Percentage Change 2011 Forecast 2011 Annual Percentage Change 2012 Forecast 2012 Annual Percentage Change Canada
339,046
5.8
363,500
7.2
363,600
0.0 British Columbia
505,178
8.5
564,700
11.8
554,800
-1.8 Alberta
352,301
3.1
357,500
1.5
364,000
1.8 Saskatchewan
242,258
4.0
255,500
5.5
256,800
0.5 Manitoba
222,132
10.3
234,700
5.7
247,100
5.3 Ontario
342,245
7.5
365,200
6.7
365,500
0.1 Quebec*
248,697
8.0
261,300
5.1
269,800
3.3 New Brunswick
157,240
1.5
159,500
1.4
159,500
0.0 Nova Scotia
206,186
4.8
209,800
1.8
211,700
0.9 Prince Edward Island
147,196
0.8
147,500
0.2
148,300
0.5 Newfoundland
235,341
14.0
247,600
5.2
252,800
2.1
* Provincial weighted average price for Quebec; does not affect unweighted national average price calculations. Information on Quebec's weighted average price calculation can be found at: http://www.fciq.ca/immobilier-statistiques-definitions.php
About The Canadian Real Estate Association
The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 100,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations
collingwood area real estate - stats from crea
OTTAWA – August 16, 2011 – According to statistics1 released today by The Canadian Real Estate Association (CREA),
national resale housing activity was stable on a month-to-month basis in July following an uptick in June.
Highlights:
• Sales activity was stable from June to July, but posted a big year-over-year gain due to weakened demand in July 2010.
• Year-to-date sales continue to run in line with the ten-year average.
• The number of newly listed homes inched up by less than one per cent from June to July.
• The national housing market remains firmly entrenched in balanced territory.
• The national average price posted the largest year-over-year gain since April 2010, but was below where it stood in June.
• Upward skewing of the national average price is diminishing due to fewer expensive sales and a declining share of
national activity in Vancouver and Toronto.
National home sales activity held steady in July 2011 compared to the previous month, with just over half of local markets posting
month-over-month gains.
Major markets that saw gains compared to June include Edmonton, Montreal, as well as Newfoundland and Labrador. Activity also
held steady in Toronto, while Vancouver recorded a small decline.
“The continued stability in national sales activity shows that homebuyers remain confident about the soundness of investing in a
home,” said Gary Morse, CREA’s President. “Mortgage interest rates are low and keeping home affordability within reach, making
it an excellent time for buyers to take advantage of very favourable financing. Prices and affordability evolve differently among
local markets, so buyers and sellers should consult their local REALTOR® to better understand how the outlook for housing supply,
demand, and prices is shaping up in their housing market.”
Actual (not seasonally adjusted) sales activity came in 12.3
per cent above national levels reported one year earlier. This
increase reflects weakened activity in July 2010, when levels
for the month reached their lowest point since 2002.
A total of 284,537 homes have traded hands via Canadian
MLS® Systems so far this year. This stands just 1.6 per
cent below levels in the first seven months of last year, and
continues to run in line with the ten-year average.
The number of newly listed homes edged up by less than
one per cent from June to July. New listings were down in
60 per cent of local markets, but increased in many large
urban centres including Toronto, Vancouver, Edmonton, and
Ottawa.
The national housing market remains firmly planted in
balanced territory. The national sales-to-new listings ratio, a
measure of market balance, stood at 51.8 per cent in July,
which is little changed from 52.3 per cent in June.
1 All figures in this release, unless otherwise noted, are seasonally adjusted to remove normal seasonal variation. Removing regular seasonal variations enables
analysis of monthly changes and fundamental trends in the data.
٭ Data table available to media upon request, for purposes of reprinting only.
Chart A
News Release
The Canadian Real Estate Association
Based on a sales-to-new listings ratio of between 40 to 60 percent, about three in every five local markets in Canada were balanced
in July. Half of the remaining markets may be classified as sellers’ markets, with a sales-to-new listings ratio of above 60 per cent.
The number of months of inventory stood at 6.1 months at the end of July on a national basis, which is little changed from the end
of June (6.0 months). The number of months of inventory represents the number of months it would take to sell current inventories
at the current rate of sales activity, and is another measure of the balance between housing supply and demand.
The actual (not seasonally adjusted) national average price for homes sold in July 2011 stood at $361,181, which is the lowest level
since January. While up 9.3 per cent from its year-ago level, the increase reflects a short-lived decline in the average price following
the introduction of the HST in B.C. and Ontario, and tighter mortgage regulations earlier in 2010.
“Earlier this year, the national average price was being skewed upward by sales in some expensive Vancouver neighbourhoods, but
this factor is now diminishing,” said Gregory Klump, CREA’s Chief Economist. “Upward skewing of the national average price is also
shrinking due to overall sales trends in Vancouver, and most recently in Toronto. Their market shares as a percentage of provincial
and national sales activity are declining from the elevated levels seen in the first half of the year.”
“Changes in the national average home price are open to being misinterpreted,” added Klump. “They often signify changes in the
mix of sales activity across and within local markets, rather than a rising or falling price trend for typical homes in a specific market.”
“The national share of sales activity in some of Canada’s more expensive urban centres may retreat further from elevated levels
recorded earlier this year, resulting in an easing trend for the national average home price,” he added. “Even so, the stability of
Canada’s housing market will likely continue to stand in stark contrast to further expected volatility in financial markets.”
PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales
information from the previous month.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual
prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas.
Statistical information contained in this report includes all housing types.
MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed
for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than
100,000 REALTORS® working through more than 100 real estate Boards and Associations.
Further information can be found at http://www.crea.ca/public/news_stats/media.htm.
- 30 -
For more information, please contact:
Pierre Leduc, Media Relations
The Canadian Real Estate Association
Tel.: 613-237-7111 or 613-884-1460
E-mail: pleduc@crea.ca
national resale housing activity was stable on a month-to-month basis in July following an uptick in June.
Highlights:
• Sales activity was stable from June to July, but posted a big year-over-year gain due to weakened demand in July 2010.
• Year-to-date sales continue to run in line with the ten-year average.
• The number of newly listed homes inched up by less than one per cent from June to July.
• The national housing market remains firmly entrenched in balanced territory.
• The national average price posted the largest year-over-year gain since April 2010, but was below where it stood in June.
• Upward skewing of the national average price is diminishing due to fewer expensive sales and a declining share of
national activity in Vancouver and Toronto.
National home sales activity held steady in July 2011 compared to the previous month, with just over half of local markets posting
month-over-month gains.
Major markets that saw gains compared to June include Edmonton, Montreal, as well as Newfoundland and Labrador. Activity also
held steady in Toronto, while Vancouver recorded a small decline.
“The continued stability in national sales activity shows that homebuyers remain confident about the soundness of investing in a
home,” said Gary Morse, CREA’s President. “Mortgage interest rates are low and keeping home affordability within reach, making
it an excellent time for buyers to take advantage of very favourable financing. Prices and affordability evolve differently among
local markets, so buyers and sellers should consult their local REALTOR® to better understand how the outlook for housing supply,
demand, and prices is shaping up in their housing market.”
Actual (not seasonally adjusted) sales activity came in 12.3
per cent above national levels reported one year earlier. This
increase reflects weakened activity in July 2010, when levels
for the month reached their lowest point since 2002.
A total of 284,537 homes have traded hands via Canadian
MLS® Systems so far this year. This stands just 1.6 per
cent below levels in the first seven months of last year, and
continues to run in line with the ten-year average.
The number of newly listed homes edged up by less than
one per cent from June to July. New listings were down in
60 per cent of local markets, but increased in many large
urban centres including Toronto, Vancouver, Edmonton, and
Ottawa.
The national housing market remains firmly planted in
balanced territory. The national sales-to-new listings ratio, a
measure of market balance, stood at 51.8 per cent in July,
which is little changed from 52.3 per cent in June.
1 All figures in this release, unless otherwise noted, are seasonally adjusted to remove normal seasonal variation. Removing regular seasonal variations enables
analysis of monthly changes and fundamental trends in the data.
٭ Data table available to media upon request, for purposes of reprinting only.
Chart A
News Release
The Canadian Real Estate Association
Based on a sales-to-new listings ratio of between 40 to 60 percent, about three in every five local markets in Canada were balanced
in July. Half of the remaining markets may be classified as sellers’ markets, with a sales-to-new listings ratio of above 60 per cent.
The number of months of inventory stood at 6.1 months at the end of July on a national basis, which is little changed from the end
of June (6.0 months). The number of months of inventory represents the number of months it would take to sell current inventories
at the current rate of sales activity, and is another measure of the balance between housing supply and demand.
The actual (not seasonally adjusted) national average price for homes sold in July 2011 stood at $361,181, which is the lowest level
since January. While up 9.3 per cent from its year-ago level, the increase reflects a short-lived decline in the average price following
the introduction of the HST in B.C. and Ontario, and tighter mortgage regulations earlier in 2010.
“Earlier this year, the national average price was being skewed upward by sales in some expensive Vancouver neighbourhoods, but
this factor is now diminishing,” said Gregory Klump, CREA’s Chief Economist. “Upward skewing of the national average price is also
shrinking due to overall sales trends in Vancouver, and most recently in Toronto. Their market shares as a percentage of provincial
and national sales activity are declining from the elevated levels seen in the first half of the year.”
“Changes in the national average home price are open to being misinterpreted,” added Klump. “They often signify changes in the
mix of sales activity across and within local markets, rather than a rising or falling price trend for typical homes in a specific market.”
“The national share of sales activity in some of Canada’s more expensive urban centres may retreat further from elevated levels
recorded earlier this year, resulting in an easing trend for the national average home price,” he added. “Even so, the stability of
Canada’s housing market will likely continue to stand in stark contrast to further expected volatility in financial markets.”
PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales
information from the previous month.
CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual
prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas.
Statistical information contained in this report includes all housing types.
MLS® is a co-operative marketing system used only by Canada’s real estate Boards to ensure maximum exposure of properties listed
for sale.
The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than
100,000 REALTORS® working through more than 100 real estate Boards and Associations.
Further information can be found at http://www.crea.ca/public/news_stats/media.htm.
- 30 -
For more information, please contact:
Pierre Leduc, Media Relations
The Canadian Real Estate Association
Tel.: 613-237-7111 or 613-884-1460
E-mail: pleduc@crea.ca
Saturday, August 13, 2011
Waterfront Real Estate information Collingwood / Wasaga Beach / Blue Mt.
For homebuyers, deciding what you want - and need - in a home is crucial. Savvy buyers take time to research and gather information in order to make the most informed decision possible. For those interested in buying a waterfront home, knowing the ins and outs of this specialty market is absolutely essential. Whether drawn to the ocean shore or the river's bank, the primer below will guide interested homebuyers on how to purchase that little slice of paradise by the water's edge.
What is your waterfront lifestyle? As with any home, understanding your needs will help you better evaluate eligible properties. If you are considering the purchase of a waterfront property as a vacation or second home, you may want to get a feel for how active the vacation rental market is for the periods that you will not be using the home.
However, if you are looking to find a waterfront home to serve as your primary residence, you will be less concerned about the local vacation rental market and likely more concerned with access to important services in the area.
Likewise, you'll want to consider the types of activities you enjoy.
This is of particular importance if you're considering the home as a vacation getaway. Whether summer home or full-time abode, you want to make sure the property you choose makes it easy for you to enjoy your favorite pastimes.
* Swimming - The thought of being able to step out one's back
door for a casual swim is enough to entice many to a home on the shore.
If swimming is high on your list, you'll want to evaluate potential properties both for the quality of swimming as well as ease of access and safety. For riverfront properties, how fast is the current during hot summer months? For coastlines, are there any rip tides or outbound currents that could present danger? Is the potential swimming area near boating lanes or docks? How easily can the shore be accessed (for instance, is the best potential swimming area down a steep trail or long set of stairs)? Remember to evaluate safety concerns not only in terms of you and your family, but your potential houseguests that may include young children.
* Boating - For avid boaters, the size of the boat becomes a
crucial part of finding a waterfront property. Many waterfront properties are not suitable for a larger boat due to river depth, oyster beds or tides. Even if the overall body of water is deep enough for bigger vessels, there may not be adequate access all the way up to your property. You will also want to consider the type of boating activities you like the most. Many smaller lakes do not allow waterskiing or jet skiing.
* Fishing - Fishermen will want to stick to properties with easy
access to the water. Talk to homeowners and residents throughout the area to get a feel for the quality of local fishing. From there, it largely depends on the type of fishing you like most.
* Kayaking or canoeing - While large, active bodies of water are
a good fit for many boaters, some buyers may be looking for a more intimate waterfront experience. Rivers and smaller lakes are especially good fits for kayakers or canoe enthusiasts, especially those who prefer to enjoy the quiet of nature rather than compete with jet skis and power boats.
Carefully evaluate the property - Some homeowners will fall in love with a waterfront home without paying much heed to the property it sits on. An idyllic waterfront home may turn out to be a disappointment if you later realize that views are obscured from inside, there is poor access to the water, or you're 30 feet from a noisy public boat launch.
Don't lose sight of the home itself - By the same token, it can be tempting to fall in love with a perfect patch of property that houses a less than perfect structure. Unless you have the appetite for a major remodel or teardown and rebuild project in the future, you'll want to openly and honestly review each home independent of the surrounding property. Does the house meet the basic criteria you defined at the outset of your search? Does the home compliment the property? Is it someplace you could see yourself happily living?
Look into loans early - Many waterfront properties are more expensive than other properties and home loans can often fall into the jumbo mortgage category. Lenders will therefore only consider very qualified buyers. Begin the process of mortgage shopping sooner rather than later.
Weather the weather - In general, waterfront homes receive more abuse from the elements than the average home. Extra measures should be taken to protect homes near water, especially those along open coasts.
Depending on the area, the home may need storm shutters, corrosion-resistant stainless-steel locks, and special landscaping measures.
What is the insurance like? Savvy buyers will investigate home insurance in the area in order to understand what they're getting into.
Waterfront homeowners may be required to buy additional policies such as wind policies, flood policies and general hazard policies. In addition, obtaining standard homeowner's insurance may be more complicated and costly due to the liabilities and hazards of living on or near a body of water.
Find out what you can do with the property - If you are contemplating the idea of any changes to the waterfront property, such as adding a dock or a seawall, investigate the process before buying to ensure that these updates will be possible. Government agencies often have strict and unyielding land use regulations, and you don't want to commit to the considerable commitment of a home purchase without knowing that you can safely do what you want to make it your own. As mentioned above, you should check with local regulatory agencies to find out what kind of activities are allowed on the body of water, as some areas have restrictions on jet skis, speedboats and other watercraft.
Talk to neighbors and local residents - Ask neighbors and other locals whether or not they enjoy living in the community. Find out if there are any problems associated with owning waterfront property in the area. If at all possible, ask if there are any issues with the individual property or properties you are considering.
Check on the utilities - In many cases, waterfront properties are not necessarily on the beaten path. Buyers accustomed to the city or suburbs may assume that electricity, city water, septic system, cable and high-speed Internet will be readily available at their new waterfront home, but things may not be so simple. Many waterfront homes operate on well systems, and homes near bodies of water often have delicate plumbing. In addition, many rural waterfront areas are not wired for high speed internet or broadband cable. Adding some of these services may be expensive, or simply not possible.
How's the view from there? More than anything else, the kind of view a waterfront home affords is the one attribute that can be universally enjoyed. A home with a picturesque view allows you to enjoy your waterfront setting regardless of whether or not you engage in activities in, on, and around the water. When looking at potential properties, consider how well the home takes advantage of available views. Are windows large and well placed? Are common gathering rooms situated around viewpoints, or are the best angles relegated to kitchen window peek-a-boos? Do outdoor patios, porches, or decks provide an open air view venue?
How level is the property? Often overlooked, the terrain of the home's property is actually quite important. Flatter lots allow easier access to the water for people of all ages, and allow for a wider range of outdoor activities.
Privacy concerns - The amount of water frontage the property has will influence just how much privacy you and your family are afforded.
Properties with 50 feet of frontage or less will offer very little privacy. At 100 feet of frontage, you will have more privacy, while 150-200 feet gives you a strong degree of privacy. In general, however, if you have a great water view it can work both ways - those on the water can also see you as well.
Bargains - Buying a waterfront home can be a pricey prospect. Here are a few simple strategies to save without heading for the hills.
* Buy a street or two away from the water - Second-row beach and
lake homes drop dramatically in price, yet usually are only a short trip away from the water. Homes farther from waterfront are also less affected by storm weather.
* Go condo - Condos are traditionally good buys because
developers can put more of them on a smaller amount of property, giving their investment a bigger payoff and passing some of the savings along to the buyers. Don't forget to consider maintenance and homeowners association fees when you calculate your payments.
* Consider a duplex - Duplexes are particularly popular at the
beach and are a great way to land a freestanding home at a lower price.
Tuesday, August 2, 2011
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