MINK Market Update: Spring/Summer 2023 Magazine

MINK

THE MINK GROUP REVIEWS WHAT'S HAPPENING IN REAL ESTATE

SPRING / SUMMER 2023

THANK YOU.

Here it is, the 4th Edition of our Mink Group Market Update Magazine and we couldn't be more grateful to you for taking the time to read it. As a team, we continue to grow and educate ourselves in all aspects of real estate and it is our utmost pleasure to share this with you in each edition. We hope you find the information we share with you helpful and insightful leaving you with a sense of connection and relatability to our team.

As we navigate an ever-changing market, we continue to pride ourselves on our relationships; it is at the core of what we do, and none of this would be possible without you!

Thank you for being our biggest supporters and trusting our team with your real estate needs. As always, if you know anyone who could use our help or perspective on the market, please send them our way.

The Mink Group

Cheers to 7 years!

THINGS LEARNED AS 7 YEARS OF THE MINK GROUP

1OUR NETWORK IS OUR NET WORTH

We understand when working in an industry where our goal is to help our clients find their dream home, we must go above and beyond just sealing the deal It’s our mission to build a good rapport with every client our team comes across. We want to give our clients the confidence and sense of security that every home buyer/seller should feel toward their real estate agent

ADAPT & ADOPT 2

The real estate profession has always been in a state of constant change and as REALTORS® we cannot control the market What we can control is embracing the new realities of our times and formulating our business strategies around them We are constantly re-examining, reassessing and questioning our approaches, skills and techniques to adapt, adopt and prosper in the ever changing market

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COMMUNICATION IS KEY

Communication leads everything that we do as real estate agents, whether we’re explaining the buying process to a first-time homebuyer or negotiating an offer for a seller. Before, during and after every transaction, we are there to make things easier We are there to answer every question, every step of the process, never leaving our clients wondering

4

BE A NEIGHBOURHOOD EXPERT

Being a real estate team who truly knows our local markets, we come with more knowledge of recent and historical listings and sold prices, taking into account the nuances of every street and its properties. This is crucial knowledge for positioning strategy and negotiations

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We want to ensure that our clients have a complete understanding of the buying or selling process Taking the time to educate our clients sets the stage for a more streamlined and successful process Hence, the creation of minkexperienceca We encourage you to visit our new website to explore our guides, checklists and how our team can help you

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EDUCATING OUR CLIENTS LOCAL LOVE

We have a strong local knowledge and a deep commitment to the success of our local communities It’s the community and people around us who help us on our quest to success. Whether we're sponsoring a local sports team, supporting local business through hosting our own events, we love giving back and supporting our community

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DON'T STOP LEARNING

The MINK Group understands the importance of continual learning Not just learning from experience, but also proactive and intentional research. We strive to keep up to date on market knowledge, attend conferences and seminars, and network with other agents throughout the country There’s an endless need to keep on top of the latest trends, tactics, and strategies and to keep learning to best serve our clients

Pictured left to right: Audrey Bailey, Rebecca Plouffe, Ashlee Mclean (Sales Representatives) and James Mink (Broker) The MINK Group, Coldwell Banker Community Professionals, Brokerage.

MARRY THE HOUSE PRICE & Date The Rate

ALOOKATTHECURRENTREALESTATEMARKETANDWHATTOEXPECTIN2023

There has been a lot of change in the real estate market over the past couple of years With the rising interest rates, economic insecurity, and declining house prices, many potential buyers and sellers are feeling "stuck" In addition, the media has portrayed a pretty grim picture of what it can mean for homeowners In turn, this negatively influenced the market and consumer confidence It's easy to get caught up in the headlines about the "crash" and whether or not we have bottomed out. James and Rebecca shed some light on their thoughts and what it truly means to trade real estate in 2023.

First and foremost, let's talk about interest rates and prices. At the end of the day, keep in mind you are marrying the home you want to live in and the price you pay to purchase it The interest rate is simply part of the dating process

In the GTA, on average, we have seen a decline in house prices of approximately 20% since the highs of 2021 and early 2022 The bubble was large Homes were selling at alltime highs and in record time Accompanied by record-low interest rates, the market was extremely fast-moving, and impossible to sustain

The reality of it is the market couldn’t keep appreciating at the rate that we had seen over the past 2 5 years

We saw unprecedented growth in demand and price escalations, leading to unhealthy processes of purchase Most financial institutions and regulators prioritized profit over their influence on lending practices

The qualification standards that previously existed to protect the integrity of the industry essentially went out the window Almost anyone could qualify for a mortgage and even the appraisal process was weak with most of them being completed as a mere "drive by".

In the current market, we are seeing banks and lenders reverting back to those higher standards and sticking to them This is putting more pressure on buyers and their ability to purchase. If they can't qualify for the mortgages they could previously, the amount they are able to spend is lower

Combine that with the rising interest rates we have experienced over the past year, the house prices are forced to decrease and consumer confidence is affected

The entire market shifts to accommodate this new reality and will continue to fluctuate based on rate changes Small rate changes sometimes can weather the storm and the market can still be normalized without a change in buyer or seller expectations However, when there are drastic changes (as we have seen in the last year) it affects everyone

"Don't wait to buy real estate. Buy real estate and wait"

Our society is more tied to rate than we talk about There are a few outliers that can use cash for their transactions But the majority of the public in any segment of real estate (homeowners, investors, flippers, commercial, etc ) use leverage and borrow to finance their home purchases This leads them to be at the mercy of lending guidelines and rate changes

We have seen some major segments of real estate hit harder than others, due to, not only, the rate changes but also a shift in needs after the lockdowns When we were experiencing the lockdowns, many people entered a remote working environment and were able to work from home Over the last few months, we have seen companies reversing that trend, calling their employees back into the office. This has caused many who moved out of the city to reconsider their choice and move back closer to transit hubs, or the physical office itself

This change in rural interest has hit some of the smaller communities a bit harder during the downturn we have seen over the last year Homes are generally staying on the market longer and selling at a substantial discount compared to homes with a more urban setting This of course is not true of every area, as there are some very desirable rural locations, but it’s something that has been trending in the last few months

Another observation in more recent sales is a shift in buyers’ willingness to renovate Homes that need updating are sitting much longer than those that are move-in ready, even when the price of renovations has been factored into the list price

When buyers aren’t confident that the market will be rising, they are less willing to take on new projects to build equity into their homes They would rather save the cash they have on hand for a rainy day.

This rings true as well for flippers When taking into account the price of materials, the numbers aren’t making sense for them This is causing many to sit on the sidelines, waiting for signs the market will improve before they jump into their next project

We believe 2023 will start to see the balance return All signs are pointing to a hold on the increase in interest rates, buyer confidence is on the rise and in certain cases multiple offers on properties

If interest rates stabilize, or even start to lower, it will increase the affordability of the buyer market This will help home prices begin to rise again Will we go back to the highs of 2021 and early 2022? Likely not, but we will see home appreciation return to a healthy and sustainable rate

At the end of the day, the timing is right, when it's right for you. There is no crystal ball, but the old saying, "Don't wait to buy real estate, buy real estate and wait", couldn't be more relevant than it is right now Buying a home at a lower price point and a higher interest rate doesn't have to be scary.

When the rates begin to lower, you can refinance Your down payment will be lower You'll have snagged your perfect property at a price that will allow for growth and appreciation in the coming years.

If you have questions that pertain to your specific situation or home buyingselling plans, as always, reach out to our team We are happy to break it down and help you set real estate goals that work on your terms.

Rebecca Plouffe Real Estate Sales Representative Coldwell Banker Community Professionals, Brokerage @rebeccaplouffehomes

James Mink Real Estate Broker Coldwell Banker Community Professionals, Brokerage @theminkgroup

STATISTICS SAY

$791,551 Avg Sale Price

2.9

37.5 Avg Days on Market Months of Inventory

Hamilton Burlington Haldimand Niagara North

$750,529 AvgSalePrice

$927,121 AvgSalePrice

$827,051 AvgSalePrice

$775,954 AvgSalePrice

-23.14%

-32.30%

-5.29%

-25.80% %changefrom 2022 %changefrom 2022 %changefrom 2022 %changefrom 2022

It’s been a steady start to 2023 Buyers have been active with a large number of visits to our listings and steady traffic during our open houses Across RAHB (Hamilton-Burlington), home prices are on average 20% lower than they were at the start of last year ("the bubble") After ten months of consecutive declines, benchmark prices increase and the prices are still above pre-pandemic prices

It’s a good time to buy, as interest rates are unlikely to stay this high for a prolonged period of time. Prices right now are at a discount compared to this time last year

Source: Real Estate Association of Hamilton-Burlington (RAHB) Stats: All RAHB Regions January 2023

NEIGHBOURHOOD SPOTLIGHT

Beamsville, ON

Welcome to Beamsville

If you’re looking for an escape from the city with a homey feel with great restaurants, wineries, and scenic views, you have to visit the beautiful town of Beamsville! It’s one of the Niagara Region’s best gems that is part of the township of Lincoln

Property Value

Beamsville's history is what makes it special With its new developments, the town's growth has definitely attracted millennials, business owners, and empty nesters According to current Beamsville MLS© statistics, the average home listing price in Beamsville, ON is $700,338.

Lifestyle

It is a quaint, cozy, and laid-back community, with a population of just under 12,000. Checkered throughout the area are lots of century-old-style brick homes, farms, orchards, vineyards, breweries and distilleries, and the downtown remains frozen in time with local shops

WHAT OUR CLIENTS HAVE HAVE TO SAY...

"We moved to Beamsville at the end of October 2022 into a lovely 1931 home with loads of charm, in a part of town that looks like it could be used in a movie set! Beamsville has everything you need in less than a 10-minute drive, with very little traffic The people are extremely friendly and everyone seems so relaxed."

"Not to mention that we are in the Niagara region with all of its offerings from wine to beer to fresh produce to gastronomic restaurants We couldn’t be happier!"

- Judy Scott

Mink Group Client, Moved from Downtown Burlington to Beamsville Summer 2022

Some of Judy's Local Favourites

Coastal Kitchen & Bar

coastal-kitchen com

Enjoy the relaxed atmosphere, fabulous cocktails, mouth-watering southern food and warm hospitality.

Littlefoot Farm Quality Meats

littlefootfarm ca

Featuring farm-fresh eggs, poultry and meats, the farm also has a storefront with an assortment of locally crafted items. Don't forget about the actual farm! Stop by and visit their miniature horses and Pygora goats

The Yoga Vine

theyogavine ca

An integrated health studio providing a variety of natural wellness services from, yoga, reiki, osteopathy and naturopathic doctors They regularly host workshops and events for all levels and ages.

LET'S HANG!

by Ashlee Mclean

Real Estate Sales Representative Coldwell Banker Community Professionals, Brokerage @ashlee mclean

DESIGN TIPS FOR INSTALLING LIGHT FIXTURES, CURTAINS & ARTWORK

LIGHT FIXTURES

Whether it is a foyer or great room chandelier,sconcesinyourbathroom, or pendants over your island, it is important to install them correctly so that the room feels balanced. Now, with these general guidelines, there are always exceptions depending on the style of the room, the type of fixture and the surface underneath thelight.

Chandelier in Great Room/Foyer

We are seeing the return of large light fixtures in great rooms and foyers You want to be mindful of what is happening beneath and around the light There may be a seating arrangement, a staircase, or just an open space It may be a single-storey room, or a two-storey (loft-style space) There may even be a bank of windows that will affect its placement

Place the light fixture in the centre of the room, or over the main vignette/arrangement

For a single-storey space, make sure to have at least 7 feet of clearance from the floor to the bottom of the light fixture

For a two-storey room, hang the fixture no lower than the start of the second storey so that it isn’t in the first storey’s air space

If there are windows on the second storey, you may want to consider hanging the fixture centred on the windows

Pendants in the Kitchen

The number of pendants to hang over a kitchen island or peninsula will depend on a few factors: the size of the island, the size of the light fixture and personal preference Keep these general guidelines in mind:

There should be at least 6” from the edge of the island to the first hung pendant

Leave 30”-36” between the top of the counter and the bottom of the pendant

Don’t crowd the pendants - leave 30”-32” in between each pendant

Chandelier Over Dining Table

The height of your light fixture over your dining table is dependent on the height of your ceiling You want to avoid hanging it too high so that when you’re seated it feels so far away, but you also don’t want the light bulbs dipping into your dinner

8-foot ceilings: 32” – 36” between the top of your table and the bottom of your fixture

9-foot ceilings: 36”– 40” between the top of your table and the bottom of your fixture

10-foot ceilings: 40” – 44” between the top of your table and the bottom of your fixture

ARTWORK

Incorrectly hung artwork is the #1 design issue we see in homesartwork that is hung too high, too small, and too far apart. We'll discuss how hanging curtains high makes the room look taller below, however, that same concept DOES NOT apply to artwork.

Hang single or side-by-side art pieces at eye level

57” – 60” from floor to the centre of the art

You want to be able to stand and be looking at the centre of the art piece

Keep the artwork scale in mind while hanging it close to the furniture below

If the art piece is being hung over a console table, or over a couch, the rule of thumb is to leave 4”- 6” of space from the top of the furniture piece to the bottom of the art Artwork should be 2/3 the size of the furniture below it

Hang multiple pieces as if they are one

Make sure to leave only a few inches between the art pieces to avoid them feeling disconnected

If hanging a gallery wall of art, leave 2”-3” between the frames

CURTAINS

When it comes to window coverings, curtains are an affordable and functional option. When hung correctly, they are also useful in “tricking the eye” to make your windows look larger and your ceilings appear taller.

The Higher the Better

The placement of the curtain rod is very important and should be hung in relation to the ceiling, not the window A general rule of thumb is to divide the space between the ceiling and the top of the window frame into thirds and install the rod 1/3 down from the ceiling. Now with an 8ft ceiling height, that will mean your rod will be quite close to the ceiling and that is OKAY! Hanging the rod higher will mean you will have longer curtains (see Tip #3) which naturally draws your attention upwards, making the ceiling appear higher than it is

Wider Than Your Window

We can also use curtains to make windows seem wider than they are. Extending the rod 6 inches past either side of the window makes it look more expansive, and gives you more space to pull the drapes back and let the light in While executing this trick, remember to keep the inside of the panels flush with the window trim for the illusion they’re covering a wider window

Kiss the Floor

There is nothing worse than curtains hung too short The best way to determine curtain length is to first measure the distance between the floor and the height of the curtain rod and then round up to the nearest panel size Most standard curtain lengths are 63”, 84", 96", 108" and 120” inches Generally, the drapery that hovers about ½ inch off the ground “kissing the floor” provides a crisp and clean look. One exception to this rule: if you are going for a more romantic touch, add 4 to 6 inches to allow for puddling on the floor

YOU MADE IT.

YOU ARE A REAL ESTATE INVESTOR; A LANDLORD. NOW WHAT?

withAudreyBailey

Bilingual Real Estate Sales Representative Coldwell Banker Community Professionals, Brokerage @audreybailey.realtor

With the recent real estate market changes and price drops, there are many new investors in the market

You may be a first-time investor who has finally been able to scoop a cash-flow positive property, or a home-owner unable to sell your home so you’ve decided to rent it out instead I've outlined some of the most common responsibilities

Know your role

As there’s a large number of new landlords arising, you need to be aware of your role As a landlord, you cannot do as you please You have to follow the guidelines set out in the Residential Tenancy Act The Act sets out the rights and responsibilities of landlords and tenants who rent residential properties You should also know that the Landlord and Tenant Board (LTB) resolves disputes between tenants and landlords. It is similar to a court. You can find further information here: tribunalsontario.ca

Finding & Screening Tenants

Finding the right tenant(s) is essential for any landlord You'll need to advertise your property, screen potential tenants, and run background checks Ask for proof of income, references, and a credit report

You need to ensure that your tenants will be able to pay their rent on time and take care of the property. You should also make sure to have a detailed lease agreement in place to protect your rights. You can get help from The MINK Group for this step. This can help save you a lot of time and hassle.

Collecting Rent

You need to make sure that your tenants pay their rent on time and in full To do this, you should put in place a payment process that works for you and your tenant; for example, receiving an e-transfer on the first of each month Having an early rent bonus or late fee policy in place is also a good idea

This will help ensure that tenants are aware of the consequences of not paying their rent on time You should also have a written record of all payments and late fees We have a Mink Group ledger to help keep track of payments, if you ever need it, just send us an email This will help protect your rights in the event of a dispute.

When it comes to rental increases, you can only increase rent once every 12-month period, you must provide 90 days' notice in writing and you must follow the Ontario rent increase guideline which is set every year For 2023, it is a 2 5% increase Should you ever have issues with late payments or nonpayments, there are forms on the Landlord/Tenant Board website for you to use and if you’d rather have an off-hands approach, we suggest you can reach out to a legal team.

Making Necessary Repairs

When you become a landlord, you are responsible for making sure that your rental property is in good condition You are responsible for making necessary repairs and ensuring that all appliances and systems are working properly It's important to have a schedule in place for regular inspection and maintenance of your property You should also have a policy in place for how you will handle emergency repairs and who will be responsible for them.

Generally, the tenants should be responsible for ongoing maintenance such as changing lightbulbs, lawn care, and cleaning But, if they fail to do so, it is ultimately the landlord’s responsibility

Health & Safety

As a landlord, you need to ensure that your rental property meets all safety and health regulations This includes ensuring that the property is up to code with working smoke and carbon monoxide detectors, and is free of any hazardous materials. You should also make sure that any appliances or systems are regularly inspected and maintained You can get the help of a property management company for a monthly cost if preferred

Maintaining & Protecting Your Investment

As a landlord, you are responsible for maintaining and protecting your investment This includes regular repairs and inspections, as well as protecting the property from any potential damage or theft. You should also make sure that your insurance policy is up to date and includes coverage for any potential incidents

Being a landlord can be a lot of work, but it can be incredibly rewarding

By taking the time to understand your responsibilities and creating a system for managing your rental property, you can ensure that your investment is protected and that your tenants are taken care of. If you have any further questions, we are always happy to assist with your real estate portfolio

"Being a landlord can be a lot of work, but it can be incredibly rewarding."