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Real Estate Market Explained

Real estate is a commodity, not unlike milk, gas, or automobiles. As such, the value of real estate is affected by supply and demand. Many factors in the economy affect home prices such as:

  1. Interest Rates
    If low, this will increase the demand for homes and prices may go up. If high, they lower the demand for houses and prices may go down. The Bank of Canada and the commercial banks adjust interest rates periodically as the economy changes. They try to strike a healthy balance for banks and homeowners to keep the economy thriving.

  2. Employment
    If an area has high employment, this increases the demand for houses and prices go up, if an area has low employment, demand and prices go down.

  3. Time of Year
    Spring is the busiest time of year in the housing market. As a seller, there are more buyers but if there are many sellers, this may force home prices down. As a buyer, you want a good supply of houses for sale since a small inventory will push prices up as buyers fight for homes. The summer and fall can also be very busy months in real estate.

  4. Trends
    Typically, the housing market experiences bubbles and downturns over time.

Ask Mr. Realtor!

Recent Questions & Answers
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May 6, 2011

A conditional offer is an offer to purchase a property which has a clause that requires the buyer to sell another property before they can purchase this one.  These can be quite confusing with many details so ask your realtor to fully explain how conditional offers work.

Apr 26, 2011

If you just need to upgrade the electrical panel to 200 amps, about $1200 should cover it.  However, if you also have to upgrade the entrance to the house, you would be looking at quite a bit more cost. 

Apr 15, 2011

The most important thing about an exclusive listing is that it can't be found on MLS.  It is a listing through one company and has to be sold through that company.  It can be advertised in newspapers, personal websites, etc. but won't be found on the largest website of all-MLS.  Since over 80% of homes for sale are found on MLS, it's not a good idea for sellers to list exclusively because your listing won't be seen by nearly as many potential buyers.

Sep 14, 2010

If you built a home today, your septic tank will likely be concrete with a field.  If build properly, they can be zero maintenance and may not ever have to be pumped out.  In the past, you could put any type of septic tank in including:  steel tanks, fiberglass tanks, pressure treated wood, or even just a barrel in the ground with a pipe going into a ditch instead of a proper drainage field.  Contact the Dept. of Health regarding new construction septic systems. 

 

Sep 10, 2010

This depends on the realtor who lists your home.  The most important advertising is on MLS (multiple listing service) which is where most buyers look for homes.  Most buyers look for homes on the internet these days.  There are many other websites used to advertise homes for sale as well such as:  the company's website, personal websites, Kijiji, etc.  However, many properties are still advertised in local newspapers, real estate guides, etc.  When interviewing realtors, ask them how they will advertise your home for sale.

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