Buying and closing on a home: Here’s how much it actually costs
The process of buying a home isn’t done once your offer is accepted and you’ve secured a mortgage. Here’s how much you actually have to pay to close.
When the COVID-19 shutdowns hit in March 2020, virtually all home sales in Southern Oklahoma came to a halt for approximately a month and a half. As soon as sales resumed, they came back in a big way and a seller’s market was born.
A seller’s market refers to a housing situation where the demand for homes to purchase is higher than the number of homes available, and the seller’s market in the Ardmore area has remained in place for almost two years.
Marcus Cunningham, managing broker with United Country Southern Oklahoma Reality, illustrated the situation by sharing figures collected by the Greater Tulsa Association of Realtors. In addition to the Tulsa area, the numbers also include all of Southern Oklahoma and a large portion of the eastern region of the state.
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“In January of 2017, 2018, 2019 and 2020, it would take an average of about 45 days on the market for a home to sell, and right now that number is down to about five,” Cunningham said. “That’s the average length on the market. There are a few that places that have been for sale for a long time, and that skews the number somewhat. But homes that are priced in the right ballpark usually sell within five days or less.”
Cunningham said his personal record for a quick sale was 71 minutes from putting a sign in the yard to having a signed purchase contract. He also shared a story about a home he sold twice, once a few years ago and once recently.
“A couple years ago I sold it and only had one offer on it,” he said. “This year when I listed it again, I had eight offers within two days.”
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What is the average price of a home for sale in Ardmore?
The short time many homes spend on the market combined with the number of buyers looking for homes has also led to the cost of the average home going up significantly. Cunningham said homes sold for an average price of $164,000 in January 2020, and this number jumped to approximately $200,000 in January 2022.
Another recent change in the market concerns the ratio of a house’s selling price when compared to its listing price. Cunningham said this figure was around 95% in 2017, but has been over 100% since July 2020. The only exception to this came in January 2021 when the figure dropped to 99.75%.
The quick sales and higher costs have led Cunningham to notice an interesting new quirk in the market. That is the number of people who back out of purchasing after getting an offer accepted.
“Typically when someone puts in an offer and it gets accepted, that sale will almost always make it to closing,” Cunningham said. “Now I’m seeing more people back out of houses in the first week than I ever have in my career. I think what happens is people are getting jumpy because they know how tight the market is right now. They’ll put in an offer early then freak out because they think they’ve made a hasty decision. That’s always occurred at times, but it’s getting more common.”
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Cunningham believes the current low interest rates are a major factor in fueling the current market. The low interest rates allow buyers to afford more house than they could have in years past, and in spite of higher prices they are still coming out ahead because they will end up paying less in interest. He said this has led to more people wanting to buy larger and more expensive homes as well as to more people entering the housing market.
“People who may have been renters in the past are now able to buy a home instead, and their monthly house payments are typically much cheaper than what they are currently renting,” he said.
While it may seem that fewer renters may lead to landlords having a more difficult time filling their properties, Cunningham said this is not the case. In addition to selling homes, he also has a management company with 232 properties for rent. Only one is currently vacant.
While he does not see the current market changing in the near future, he said things may begin to turn around in the coming months as interest rates are now going up again.
Worry, buyer's remorse high as real estate market slowdown materializes – Ottawa Business Journal
A wave of buyer’s remorse is taking shape in several heated real estate markets, after housing prices started dropping and the number of sales slowed over the last two months.
Realtors and lawyers in Toronto and Vancouver say they have noticed buyers looking at what options they have to get out of a purchase and sellers hoping to ensure one goes through because conditions have shifted dramatically from the previous highs and frenzied pace.
The country experienced a 25.7 per cent drop in the number of homes sold over the last year and a 3.8 per cent slide in housing prices between March and April, the Canadian Real Estate Association said Monday. The average home price last month totalled $741,517.
Such numbers have prompted some sellers to explore lawsuits to ensure transactions move forward and other purchasers to worry about the value of pre-sale properties they bought years ago but have yet to take possession of.
“With today’s real estate prices, there’s really no option but to go all in and if you’re going all in, and then suddenly you’re realizing that perhaps you made a bad bet and there’s a way out of that bet, you’re going to do whatever you can to get out,” said Mark Morris, a Toronto real estate lawyer.
In recent weeks, he has seen nine cases where buyers want to back out of deals but on Monday alone was approached by three sellers keen to use legal channels to keep purchasers from walking away.
Morris doesn’t call the encounters a trend because it’s unclear how many other lawyers are seeing the same spate, but three queries in a day is his new record. He used to see one case of that nature every few months.
“Purchasers are looking at the existing crisis, and in the best of times, they feel they overpaid, but now they have objective proof that they’ve done so because markets have started to pummel and fall and really shows no signs of slowing down,” said Morris.
“Many of those buyers are faced with the option of moving forward or upping and walking.”
People get “spooked” every time the market turns and explore what they can do about deals they signed, but few end up walking away because it’s hard to get out of such transactions, said Phil Soper, CEO of Royal LePage.
He thinks the exception to this pattern came in 2020, when the COVID-19 pandemic broke out and people wanting out of transactions had so many unknowns on their side.
Most buyers trying to end a deal this year won’t be successful because there is no legal way out, but such cases are also impractical for sellers, Morris said.
“Is a seller really willing to pursue a buyer that has no assets? Is the seller really going to go through three years of courts only to find that they have a judgment that can’t be pursued?” he pondered. “Are they really ready to put up the amount of money that it will take to pursue this to the ends of the earth if they’re able to resell? Perhaps not.”
In cases where the buyer has put money into a seller’s trust account, that money can only be released with a court action, the closing of the deal or a mutual agreement not to pursue the sale, said Morris. He’s seen buyers agree to give the seller the money, if the seller mutually agrees to end the deal.
If a deal ends, brokers can sue for their lost commission but not many explore this avenue because it’s “not a good look” to take legal action against a client, who might still turn to you when they try to sell the home from the failed transaction again, said Morris.
While Tirajeh Mazaheri hasn’t seen legal action in Vancouver, the Coldwell Banker Prestige Realty agent has seen buyer’s remorse and worry crop up among investors who purchased pre-construction homes a few years ago but have yet to take possession of them.
“A lot of those people are thinking, ‘Is the market going to be able to justify this price or keep up with the price I paid and can I get this money back if I want to sell in a year?'” she said.
The people who purchased in early rounds of pre-construction sales for a building are already ahead of the curve, but those who bought later will have to wait longer to break even or make a profit, she said.
Even though worry is at a high, Mazaheri and Soper agree the markets do rebound and homes are still a valuable investment.
“Anyone who bought a home in 2021 in this country, if they bought anywhere near market price, their home is going to be worth more in 2021,” said Soper.
“Will it be worth more one year from now? That’s harder to predict ? but even a year from now the likelihood of that home being worth less than it is today is smaller.”
Vancouver real estate: 'Plush' new build for $7.5M | CTV News – CTV News Vancouver
It’s new, it’s near the beach and it costs millions more than the benchmark for the area.
A newly built home for sale in Vancouver is listed at $7.5 million.
The sellers of the house on West 12th Avenue are asking more than $5 million more than the current benchmark in its neighbourhood of Point Grey.
They say it’s somewhat of a rarity for the tony region of the city, but it’s priced higher than some of the neighbouring homes because it’s brand new, and because of its features.
According to those behind the listing, the four-bedroom home has a total floor space of 4,189 square feet over two storeys and a basement.
It has a 564-square-foot rooftop deck with city, water and mountain views, the listing from realtor Faith Wilson with Christie’s International Real Estate says.
The home has “luxurious, high-end finishes, including a spa ensuite richly appointed in calacatta stone.”
It has a “spa-inspired dry sauna” on the ground floor, and its recreation and media rooms each have wet bars.
The grounds are landscaped and there’s a three-car garage past its gated entry.
The kitchen is described as “gourmet,” and the family room “boasts coffered ceilings (and an) exquisite waterfall Caesar stone cooking centre.”
Its future buyer would find themselves in walking distance of Jericho and Spanish Banks beaches.
Its property taxes are not for the faint of heart at an estimated $13,962. That estimate, however, is from 2020, before the new house was built.
Recent reports suggest Vancouver’s luxury real estate market is seeing a decrease in sales, but prices continue to climb.
The price is far out of reach for many, including most of those who live in the area.
Still, according to census data for the area, more than one-quarter of Point Grey residents have a total household income in the highest category – $200,000 and over.
The median for households of two or more people is $135,680, much higher than in many Vancouver neighbourhoods.
A quarter of those who live in the area work in “professional, scientific and technical services,” and nearly a quarter are in educational services, the data from Statistics Canada suggests.
Three-quarters of adults have at least some level of university education, from a bachelor’s degree to a doctorate.
Canmore real estate developments back on after tribunal ruling | CTV News – CTV News Calgary
A contentious proposed real estate development in Canmore got new life Tuesday.
One year ago, Canmore town council rejected the Smith Creek development and decided the Three Sisters Village proposal needed significant changes.
Three Sisters Mountain Village Properties Ltd., the project developer, appealed the decision to a municipal tribunal, and Tuesday the town was ordered to allow the projects to proceed.
Conservation groups fought the proposal, saying it didn’t provide enough space for wildlife to travel through the valley.
“Unless overturned, this decision will cause harm to the lands, and wildlife movement and habitat of an important part of the Yellowstone to Yukon region,” said a statement issued by Yellowstone to Yukon Conservation Initiative on Twitter. “Keeping these lands connected and intact is in the best interest of Albertans now and into the future. Connectivity provides the best chance for some of our most cherished and threatened wildlife to thrive.”
There was no word from the Town of Canmore on whether it will appeal the decision.
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