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Experts provide Windsor-Essex real estate tips and predictions for 2023

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This year saw Windsor’s real estate prices reach their highest point ever — but the market also saw a steep decline as interest rates soared. That has some potential sellers and buyers wondering what 2023 might have in store.

According to a recent report from online brokerage Zoocasa, some buyers might be willing to take the leap and make purchases despite higher interest rates, and sellers who had put their planned sales on hold might not be willing to wait much longer.

Here are some tips and predictions from a local realtor and broker:

Advice for buyers

“If you can buy now, buy now,” stressed Mohamed Heddad, a representative with LC Platinum Realty.

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“The climate at the moment is very favourable toward the buyers, not as much for the sellers.”

 

Mohamed Heddad’s tips for buyers

 

Mohamed Heddad shares his advice for individuals considering buying a home.

A major shift in favour of buyers is the drop in house prices. In March 2022, the monthly average price for a home in Windsor-Essex peaked at $723,739, but that has sunk back down to $511,275 for November, according to data from the Windsor-Essex County Association of Realtors. That average price was about 10 per cent less than the same time the year before.

Even though buyers would be dealing with higher interest rates due to increases in the Bank of Canada’s benchmark rate, there are benefits to buying now, Heddad explained.

First of all, listing prices are more reflective of the selling price than they used to be, he added. Buyers have the “upper hand” and so so they can put in offers with conditions for financing and inspections — things they couldn’t do over the last few years due to high competition.

Heddad predicts that when interest rates eventually go back down, prices might start to creep up again with more people coming back into the market, making it more difficult to buy.

Mortgage agent Rasha Ingratta agrees that now or in the near future is a good time to buy a home because despite higher interest rates, with home prices being lower, it’s a good time to jump.

However, when making a decision on your mortgage rate, she stressed that it’s not a good time to do a long-term rate mortgage.

“What I’m suggesting right now is to go with a short-term mortgage or a variable rate mortgage,” she said.

“Interest rates will come back down … and then you can lock in at a better rate when rates come back down,.”

Heddad also predicts that we may have hit the bottom of the market in terms of prices, though Ingratta believes they might keep dropping for the next six months.

Advice for sellers

Sellers are definitely dealing with a very different kind of market compared to a year ago, according to Heddad.

 

 

Rasha Ingratta’s tips for sellers

Mortgage broker Rasher Ingratta shares what she believes should be top-of-mind for sellers.

“When we used to see houses selling in one to two days after they being listed, now we’re seeing houses staying on the market for three, four weeks, sometimes even a few months before they sell,” Heddad explained.

He expects though, that once interest rates go down by mid to third quarter of 2023, more buyers will come into the market then.

However, if a seller wants to sell a property as soon as possible, whether it be an eagerness to downsize or needing to relocate, Heddad advises individuals to market their property as best as they can by getting professional photos taken and investing in cleaning and staging of the property so that it stands out against other competing properties.

“For sellers, it’s so important to make sure that you look at your finance landscape to make sure that you are ready for that next purchase,” Ingratta stressed.

She too anticipates a healthier housing market once interest rates go back down which she also predicts for later in 2023.

Predictions

“2023 is going to be a very exciting year,” Heddad said.

“[The market] was not healthy the last few years at all, but we are definitely seeing a more balanced market right now and as I said in the beginning, the buyers have the upper hand. And I believe that they will continue to have the upper hand going into 2023.”

The Zoocasa report also predicts that interest rates will catch up to homeowners in 2023.

The housing market in Windsor-Essex has cooled off dramatically since earlier this year. (Katerina Georgieva/CBC)

Heddad said he doesn’t anticipate many people will be losing their homes because of that next year, but Ingratta said she is having conversations with clients worried about making payments.

She said there are ways to find short-term solutions to “weather the storm” like stretching amortization to keep payments low to keep people in their houses.

Both Heddad and Ingratta anticipate relief in the year ahead with interest rates going back down.

“You’re going to start seeing a healthier housing market where people are buying, people are selling,” Ingratta said.

However, nothing is guaranteed. Earlier this month, when the Bank of Canada raised the rate to 4.25 per cent, the bank said it “will be considering” whether or not the rate has to go higher in order to bring supply and demand back into balance and return inflation to target.

As for those fears of buying or selling during a recession?

“Everybody’s talking about a recession,” Heddad said.

“But at the end of the day, we all need homes to live in.”

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Real estate agents say they can't imagine working without ChatGPT now – CNN

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CNN
 — 

If you came across a four bedroom, 3.5 bathroom home listed for sale recently on a quiet cul-de-sac in Cedar Rapids, Iowa, you might not think twice about the online listing. It included typical real estate descriptions like “ideal for entertaining” and “ample space for relaxation.”

But JJ Johannes, the realtor for the home, created the description in less than five seconds by typing a few keywords into ChatGPT, a viral new AI chatbot tool that can generate elaborate responses to user prompts. It’s a task, he said, that would otherwise have taken him an hour or more to write on his own.

“It saved me so much time,” Johannes told CNN, noting he made a few tweaks and edits to ChatGPT’s work before publishing it. “It’s not perfect but it was a great starting point. My background is in technology and writing something eloquent takes time. This made it so much easier.”

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ChatGPT passes exams from law and business schools

Johannes is among the real estate agents experimenting with ChatGPT since it was released publicly in late November. Some residential and commercial agents told CNN it has already changed the way they work, from writing listings and social media posts to drafting legal documents. It could also be used to automate repetitive tasks such as answering frequently asked questions and doing complex calculations.

ChatGPT is trained on vast amounts of online data in order to generate responses to user prompts. It has written original essays, stories, song lyrics and research paper abstracts that fooled some scientists. Some CEOs have used it to write emails or do accounting work. It even passed an exam at an Ivy League school. (It has, however, raised concerns among some for its potential to enable cheating and for its inaccuracies.)

Miami real estate broker Andres Asion.

In less than two months, ChatGPT has sparked discussions around its potential to disrupt various industries, from publishing to law. But it’s already having a tangible impact on how a number of real estate agents around the country do their jobs – where much of the written work can be formulaic and time consuming – to the extent that some can no longer imagine working without it.

“I’ve been using it for more than a month, and I can’t remember the last time something has wowed me this much,” said Andres Asion, a broker from the Miami Real Estate Group.

‘As soon as I tried it out, I was sold”

Recently, a client reached out to Asion with a problem: the woman had moved into a pre-construction home and couldn’t open her windows. She had attempted to contact the developer for months with no response. Asion ran a copy of one of her emails through ChatGPT, asking it to rewrite it with an emphasis on the liability implications.

“ChatGPT wrote it as a legal issue and all of a sudden, the developer showed up at her house,” he said.

How Microsoft could use ChatGPT to supercharge its products

Asion has also used the tool to draft legally binding addendums and other documents, and sent them to lawyers for approval. “I fine-tune all kinds of drafts with ChatGPT,” he said. “Sometimes I’ll tell it to make it shorter or funnier, and it gives you so many samples to pick and edit from.”

ChatGPT is free for now, but OpenAI, the company behind it, is reportedly considering a monthly charge of $42. Asion said “it’s not even a question” he would pay for access. “I would easily pay $100 or $200 a year for something like this,” he said. “I’d be crazy not to.”

Frank Trelles, a commercial real estate agent at State Street Realty in Miami, said he’d also pay to keep using the tool, which has already impacted the way he does business. “As soon as I tried it out, I was sold,” he said. “I went to sign up for a package, thinking it would be at least $100 a month, and was blown away that it was free. Nothing in this world is free though – and that made me a bit nervous.”

Trelles said he uses ChatGPT to look up the permitted uses for certain land and zones in Miami-Dade County, and calculate what mortgage payments or return on investment might be for a client, which typically involve formulas and mortgage calculators.

“I can be in a car with a client when they ask me what their mortgage payments might be,” said Trelles. “I can ask ChatGPT what a mortgage payment would be on a $14 million purchase at a 7.2% interest rate amortized over 25 years with two origination points at closing, and in two seconds, it gives me that information. It also explains how it got the answer. It’s amazing.”

Lots of potential, and some limitations

There are some limitations, however. The tool has, for example, struggled with some basic math before. Trelles said it’s helpful for approximations on the go, not for exact numbers.

Serge Reda, a commercial real estate executive and adjunct professor at the Fordham Real Estate Institute, said some use cases for ChatGPT are better than others. ChatGPT may help save brokers time when writing listings or responses, but automating client responses may not be the best tactic because generating leads and closing transactions typically requires a personalized approach.

New York City public schools ban access to AI tool that could help students cheat

“It’s accessible to everyone right now because it’s free and they can get a taste of how this powerful tool can work. But there are definitely significant limitations,” he said.

While ChatGPT has generated a wave of interest among realtors, incorporating artificial intelligence in the real estate market isn’t entirely new. Listing site Zillow, for example, has used AI for 3D mapping, creating automatic floor plans and for its Zestimate tool, which can scan pictures to see if a home has hardwood floors or stainless steel appliances so its price estimation better reflects market conditions. Earlier this week, Zillow rolled out an AI-feature that lets potential buyers conduct searches in a more natural language (something that’s long been mastered by Google).

Matt Kreamer, a spokesperson for Zillow, said the real estate industry has been slower to innovate, but “I think we’ll be seeing much bigger strides very soon.” He said Zillow sees no clear concerns with agents using ChatGPT to help streamline the work they already do and save time.

“We aren’t promoting or wary of ChatGPT but are interested in how it’s being used and watching it,” he said.

Although it’s too early to say if the tool will become a mainstay in real estate, realtor Johannes believes AI in general will transform his industry and others.

“It may not be with ChatGPT,” he said, “but I believe some form of artificial intelligence like this will become a big part of how we work and live our lives.”

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Why commercial real estate can be a great hedge against inflation – Financial Post

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Earn passive income and protect your wealth without doling out thousands

Article content

This article was created by MoneyWise. Postmedia and MoneyWise may earn an affiliate commission through links on this page.

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Article content

Despite inflation rates dropping to 6.3 per cent — the largest dip since Feb. 2022 — the economy’s volatility isn’t fading anytime soon.

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In fact, experts predict another year of rising inflation, hikes in interest rates and a mild recession for 2023.

Finding a safe investment to act as a hedge and bulk up your income is essential during economic uncertainty. The right investment can support you in an emergency and safeguard the future of your finances.

As a tangible asset with plenty of cash-flow potential, commercial real estate is a great place to invest to protect your money and your future.

Build financial freedom with real estate investing

Commercial real estate is an enticing investment that can diversify your portfolio and generate consistent passive income.

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Article content

Forbes reported that over the past 25 years, commercial real estate has outperformed the S&P 500 Index with average annual returns of 10.3 per cent.

Plus, because of the income it generates and its tangibility, commercial real estate acts as a hedge against inflation. When the value of the dollar drops, property values tend to increase and your real estate investment returns prove themselves lucrative.

It’s a solid investment choice for people looking to build their portfolios and protect their wealth for the future, but it hasn’t always been accessible.

Invest like a millionaire without having to be one

Because commercial real estate investing is not typically offered on a fractional basis, the barrier to entry has been prohibitively high for most investors.

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Article content

In the best-case scenario, a lender will ask the investor to put down a minimum of 20 per cent in equity before acquiring a property.

But, through tokenization, HoneyBricks has made commercial real estate investing available to accredited investors looking to build their wealth.

You don’t need to be a millionaire to invest in real estate that produces strong, stable returns. In fact, all you need is a minimum of $100 to invest in your first property and start reaping the rewards of a consistent passive income.

It only takes minutes to create your free account and start investing through HoneyBricks.

With investments both vetted and managed by their experienced team, you don’t have to stress about the status of this stable investment available right at your fingertips.

Sign up for HoneyBricks today and start building a future of financial freedom.

This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise only partners with brands it trusts and believes may be helpful to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Real estate agents say they can't imagine working without ChatGPT now – CNN

Published

 on




CNN
 — 

If you came across a four bedroom, 3.5 bathroom home listed for sale recently on a quiet cul-de-sac in Cedar Rapids, Iowa, you might not think twice about the online listing. It included typical real estate descriptions like “ideal for entertaining” and “ample space for relaxation.”

But JJ Johannes, the realtor for the home, created the description in less than five seconds by typing a few keywords into ChatGPT, a viral new AI chatbot tool that can generate elaborate responses to user prompts. It’s a task, he said, that would otherwise have taken him an hour or more to write on his own.

“It saved me so much time,” Johannes told CNN, noting he made a few tweaks and edits to ChatGPT’s work before publishing it. “It’s not perfect but it was a great starting point. My background is in technology and writing something eloquent takes time. This made it so much easier.”

300x250x1

ChatGPT passes exams from law and business schools

Johannes is among the real estate agents experimenting with ChatGPT since it was released publicly in late November. Some residential and commercial agents told CNN it has already changed the way they work, from writing listings and social media posts to drafting legal documents. It could also be used to automate repetitive tasks such as answering frequently asked questions and doing complex calculations.

ChatGPT is trained on vast amounts of online data in order to generate responses to user prompts. It has written original essays, stories, song lyrics and research paper abstracts that fooled some scientists. Some CEOs have used it to write emails or do accounting work. It even passed an exam at an Ivy League school. (It has, however, raised concerns among some for its potential to enable cheating and for its inaccuracies.)

Miami real estate broker Andres Asion.

In less than two months, ChatGPT has sparked discussions around its potential to disrupt various industries, from publishing to law. But it’s already having a tangible impact on how a number of real estate agents around the country do their jobs – where much of the written work can be formulaic and time consuming – to the extent that some can no longer imagine working without it.

“I’ve been using it for more than a month, and I can’t remember the last time something has wowed me this much,” said Andres Asion, a broker from the Miami Real Estate Group.

‘As soon as I tried it out, I was sold”

Recently, a client reached out to Asion with a problem: the woman had moved into a pre-construction home and couldn’t open her windows. She had attempted to contact the developer for months with no response. Asion ran a copy of one of her emails through ChatGPT, asking it to rewrite it with an emphasis on the liability implications.

“ChatGPT wrote it as a legal issue and all of a sudden, the developer showed up at her house,” he said.

How Microsoft could use ChatGPT to supercharge its products

Asion has also used the tool to draft legally binding addendums and other documents, and sent them to lawyers for approval. “I fine-tune all kinds of drafts with ChatGPT,” he said. “Sometimes I’ll tell it to make it shorter or funnier, and it gives you so many samples to pick and edit from.”

ChatGPT is free for now, but OpenAI, the company behind it, is reportedly considering a monthly charge of $42. Asion said “it’s not even a question” he would pay for access. “I would easily pay $100 or $200 a year for something like this,” he said. “I’d be crazy not to.”

Frank Trelles, a commercial real estate agent at State Street Realty in Miami, said he’d also pay to keep using the tool, which has already impacted the way he does business. “As soon as I tried it out, I was sold,” he said. “I went to sign up for a package, thinking it would be at least $100 a month, and was blown away that it was free. Nothing in this world is free though – and that made me a bit nervous.”

Trelles said he uses ChatGPT to look up the permitted uses for certain land and zones in Miami-Dade County, and calculate what mortgage payments or return on investment might be for a client, which typically involve formulas and mortgage calculators.

“I can be in a car with a client when they ask me what their mortgage payments might be,” said Trelles. “I can ask ChatGPT what a mortgage payment would be on a $14 million purchase at a 7.2% interest rate advertised over 25 years with two origination points at closing, and in two seconds, it gives me that information. It also explains how it got the answer. It’s amazing.”

Lots of potential, and some limitations

There are some limitations, however. The tool has, for example, struggled with some basic math before. Trelles said it’s helpful for approximations on the go, not for exact numbers.

Serge Reda, a commercial real estate executive and adjunct professor at the Fordham Real Estate Institute, said some use cases for ChatGPT are better than others. ChatGPT may help save brokers time when writing listings or responses, but automating client responses may not be the best tactic because generating leads and closing transactions typically requires a personalized approach.

New York City public schools ban access to AI tool that could help students cheat

“It’s accessible to everyone right now because it’s free and they can get a taste of how this powerful tool can work. But there are definitely significant limitations,” he said.

While ChatGPT has generated a wave of interest among realtors, incorporating artificial intelligence in the real estate market isn’t entirely new. Listing site Zillow, for example, has used AI for 3D mapping, creating automatic floor plans and for its Zestimate tool, which can scan pictures to see if a home has hardwood floors or stainless steel appliances so its price estimation better reflects market conditions. Earlier this week, Zillow rolled out an AI-feature that lets potential buyers conduct searches in a more natural language (something that’s long been mastered by Google).

Matt Kreamer, a spokesperson for Zillow, said the real estate industry has been slower to innovate, but “I think we’ll be seeing much bigger strides very soon.” He said Zillow sees no clear concerns with agents using ChatGPT to help streamline the work they already do and save time.

“We aren’t promoting or weary of ChatGPT but are interested in how it’s being used and watching it,” he said.

Although it’s too early to say if the tool will become a mainstay in real estate, realtor Johannes believes AI in general will transform his industry and others.

“It may not be with ChatGPT,” he said, “but I believe some form of artificial intelligence like this will become a big part of how we work and live our lives.”

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