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Canada’s housing market cools, trade gap narrows | Cross River NY Real Estate

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Canadian housing starts fell more sharply than expected in October, according to data on Thursday that confirms a welcome slowing in the country’s once-booming property market after the government repeatedly tightened mortgage rules.

Other data from Statistics Canada showed new home prices continued their modest rise in September while the trade deficit narrowed in that month on an oil-led export recovery.

Markets focused on the housing starts, which were down 8.9 percent from a year earlier as both single and multiple urban housing starts slumped, Canada Mortgage and Housing Corp (CMHC) said.

The seasonally-adjusted annualized rate of housing starts was 204,107 units in October, down from 223,995 in September and 18.9 percent below the cyclical peak reached in April.

“The October move was the most decisive one yet that a housing correction is under way,” said Jonathan Basile, director of economics at Credit Suisse Canada.

Analysts polled by Reuters had forecast starts would decline to 211,500 in October.

The report echoes a string of data that the Canadian housing market is cooling, but does not appear to be heading for a crash landing as happened in the United States.

Housing prices and construction roared higher in 2011 and the first half of 2012, aided by low interest rates. The market started slowing after the government tightened rules on mortgage lending in July for the fourth time since 2008 in a bid to prevent home buyers from taking on too much debt.

The most scrutinized aspect of the CMHC report was the sharp drop in starts of multiple-family units, as analysts look for clues that overbuilding in the Toronto condo market is waning.

In urban areas, starts fell 10.1 percent at a seasonally adjusted annual rate, to 182,134 units in October. Urban singles starts decreased 7.6 percent while multiple urban starts dropped 11.4 percent.

“While multi-unit starts are extremely volatile month-to-month, this downshift to the lowest level since February could be an early indication that momentum is fading in the sector,” said Robert Kavcic, economist at BMO Capital Markets.

While fading momentum is what policymakers hope for, it also means the housing market will not be as powerful a driver of economic growth as it was.

“The sector will likely remain a drag on growth through much of 2013, a stark shift from recent years,” Kavcic said.

Prices of new homes in Canada rose for the 18th consecutive month in September, increasing by 0.2 percent from August and by 2.4 percent on the year.

EXPORTS

Canada’s struggling exports are also expected to be a drag on growth in the third quarter as the trade deficit grew in volume terms even though it narrowed in dollar terms.

The trade deficit narrowed unexpectedly to C$826 million ($826 million) in September as exports increased by 1.9 percent while imports were unchanged. Canada’s surplus with the United States grew to C$3.47 billion from a revised C$3.25 billion in August.

The overall increase in exports reflected a 4.2 percent jump in energy shipments, mainly crude oil and crude bitumen. But much of the export gain was due to price hikes, and export volumes were much less impressive.

“Today’s report suggested that the hit to growth will likely be larger than previously estimated,” said Dawn Desjardins, assistant chief economist at RBC Economics.

Imports were flat, with higher imports of metals and chemicals compensating for lower shipments of consumer goods and motor vehicles.

($1=$1 Canadian)

via reuters.com

Touch me, feel me? | Cross River NY Real Estate

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You obsess on product, tweaking it to perfection.

You slave over your service, honing it to deliver a razor-sharp slice of delight.

You market your goods, crafting the most inviting offer.

You think you’ve nailed the customer experience.

Not so fast, Timmy.

No nutritional value

Jeff Smisek, United Airlines’ CEO, spoke at me from the screen. He labored on about the improvements his airline is undertaking just for me.

It was all talk.

Gate 16 had one electrical outlet — a droplet for the dozens of thirsty travelers in need of juice. Boarding was painfully slow. The cabin reeked of locker room sweat and mildew.

The onboard service ran out of real food by the time they reached my row. I was offered Pringles. I passed. They had the same nutritional value as the scuzz caked onto my seat.

The week prior I was on a Virgin flight. It was heaven. This week, I was in hell.

Virgin created heaven by attending to the simple things. Things they know turn us on. Things attainable by United — or any airline — if they reached high enough.

Brand vibes

Ever walk into a place and it just feels wrong? Think Rite Aid. Radio Shack. Payless Shoes. Toys R Us. Denny’s.

Each of these establishments offers the things you’ve entered to acquire. Yet something about the vibe is off. The way things are laid out or designed or the aura the store projects just doesn’t play to your sensibilities. Or to your desire to feel special as their customer.

Instead, you feel like a number. Part of a faceless herd.

Ever go somewhere you never wanted to leave? We all have. These are the places that attend to those little things that make us feel special. The details add up.

For example:

Whole Foods. You shop for more than food at this grocery store. You go to rediscover sustenance. Meet new brands. Local purveyors. Secure the finest ingredients. You leave with items that were never on your list.

Car2Go. It’s transportation, environmental commitment and personal convenience. Avis tried harder for 66 years. Car2Go is trying a lot harder. And they’re winning loyal fans wherever they go. They’ve simplified process and price and made it easy to be environmentally responsible. That feels good.

Four Seasons. Enter the front door. Serenity. Their service bar is high. And it’s consistent. You expect to feel good during your stay, and you leave happy.

Virgin. Their presence is an oasis in the middle of a harsh airport desert. Calm. Convenient. Designed for modern life. People wait at their gates to pass the time until their United flights board. Soaking up the good vibe.

We respond to the simple things these brands do. Time and time again.

Love your customer

Everyone wants unabashed loyalty from their customers. To get that, you’ve got love them in lots of little ways.

Some examples come to mind immediately:

Voice mail. You have an ambiguous, sterile or long message with endless menu options. Fix that. People call you because they want to speak to a person and get information. Make it easy. Personable. And to the point. No one wants to call a menu system so remove it if you can. A friendly, helpful voice that greets people every time and provides them the information or the direct line they need right away is a small thing that goes a long way to getting them to call you again.

Website. Busy websites stress visitors. The more choices, options, images and elements you place on a page, the more likely it is users will bounce or get frustrated trying to find the thing they came to the site for. I know about the pressure you’re under to place everything on the home page. Resist it. The simpler, cleaner and more user-focused the site its, the more of a calm, engaging and clear vibe it gives off. You can scream at the user, or whisper gently. Choose wisely.

Office space. Brokers: Spend a few grand sprucing up your office. Pop a coat of fresh color on the wall. Here’s another idea: Design some of your retail space like rooms in a home. A den. A Finished basement. A bedroom. A man cave. This could be a cool, feel-good environment for agents to meet with clients. Especially if these rooms are staged beautifully. Maybe a local furniture store or decorator could curate and design in exchange for free advertising. Make them want to come for a visit.

Aftercare. None of us do enough to service people post-sale. Asking customers for referrals or sending them holiday cards is OK. That’s touching them. But in a creepy sort of way. People yearn for something more meaningful than a touch. They yearn for value. Relevance. Starbucks sends me a coupon for a free drink on my birthday. That matters more to me than a Hallmark card. Conjure up something more meaningful than a turn your clock back this Sunday reminder. There are a million ideas here — too many for me to list.

Fun. Enjoyment. Happiness.

At Ikea, a color-coded path eases the ordeal of navigating thousands of products. Creatively orienting their goods inspires shoppers. Ikea makes shopping fun, which makes their customers feel good in the process. It’s the simple, singular difference between them and every other furniture manufacturer.

You will return.

Fun baked into functionality. Enjoyment at the beginning of the experience. Happiness when it concludes.

Here’s the thing to consider: The average customer in real estate doesn’t experience fun during the process. It’s clear why. Real estate is stressful. But so is flying and buying furniture — and Virgin and Ikea have taken aim right at that stress, resulting in amazing customer experiences.

While you ultimately can’t extract all the stress from the real estate transaction, you can address the simple things around it that determine how that stress is felt.

You feel me?

via inman.com

Strong new home sales brighten housing picture | Cross River Realtor

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Strong new home sales brighten housing picture

New housing construction is seen in Darnestown, Maryland, October 23, 2012. REUTERS/Gary Cameron

New U.S. single-family home sales surged in September to the highest level in nearly 2-1/2 years, further evidence the housing market recovery is gaining steam.

The Commerce Department said on Wednesday that new home sales increased 5.7 percent to a seasonally adjusted 389,000-unit annual rate — the fastest pace since April 2010, when sales were boosted by a tax credit for first-time home buyers.

Although sales in August were revised down to a 368,000-unit rate from the previously reported 373,000 units, the tenor of the report was relatively strong, with the median price of a new home rising 11.7 percent from a year ago.

The quickened pace in the housing sector is good news for the economy, but it remains one of the few bright spots.

“Housing is now a positive for the economy after years of being a drag, but it’s not enough to counteract the slowdown in manufacturing, which was the star,” said David Berson, chief economist at Nationwide Insurance in Columbus, Ohio.

A second report showed only a modest pick-up in factory activity this month amid a darkening cloud of economic uncertainty at home and slower growth abroad.

The home sales data was the latest to show the housing market on the mend from its brutal collapse in 2006, which dragged the economy through its worst recession since the Great Depression.

Rising sales are pushing down the stock of unsold properties on the market, lifting prices and giving builders more confidence to take on new projects.

Demand for housing is being driven by a steady rise in the number of U.S. households, which had declined during the recession as financially strapped Americans moved in with family and friends. Modest job gains, increased job security and record low mortgage rates are encouraging many to seek home ownership.

The U.S. Federal Reserve has targeted housing as a channel to boost growth, announcing last month that it would buy $40 billion in mortgage-backed securities per month until the outlook for employment improved substantially.

The action helped push already low mortgage rates even lower. However, mortgage rates rose last week, dampening demand for loans to purchase homes during that period.

The Fed’s monetary policy committee on Wednesday stuck to its ultra accommodative stance even as it acknowledged that some parts of the economy, including the housing market, were looking a bit better.

MANUFACTURING SLUGGISH

While the Fed’s stimulus is supporting the consumption side of the economy, concerns about domestic fiscal policy and slowing global demand are hobbling the production side.

In a separate report, financial information firm Markit said its U.S. “flash,” or preliminary, Purchasing Managers Index for the manufacturing sector edged up to 51.3 this month from 51.1 in September. A reading above 50 indicates expansion.

A modest rise in output helped boost business conditions in the sector, which suffered its weakest quarter in three years during the July-to-September period.

But fewer orders from domestic clients and a fifth straight monthly decline in overseas demand for U.S. goods indicated manufacturing was acting as a drag on growth and employment, said Markit Chief Economist Chris Williamson.

“Purchasing managers report that the key to the ongoing weakness remains uncertainty among customers in export markets, notably Europe and Asia,” he said.

The slowdown in factory activity is largely the result of fears that the U.S. Congress might fail to avoid the automatic tax hikes and government spending cuts that will suck about $600 billion out of the economy next year.

The housing data, however, showed no signs yet that the so-called fiscal cliff has crossed the radar of ordinary Americans.

The inventory of new homes on the market remained near record lows in September, although some economists worry a pick-up in building activity could undercut the market if sales do not rise significantly further.

At September’s sales pace it would take 4.5 months to clear the new homes on the market, the fewest since October 2005 and down from 4.7 months in August.

Sales last month were up in three of the four regions. They tumbled 37.3 percent in the Midwest.

via reuters.com

Move Inc. mortgage lead platform gaining traction | Cross River NY Real Estate

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Screen shot of PreQualplus tool on Realtor.comScreen shot of PreQualplus tool on Realtor.com

After getting off to a false start, Realtor.com operator Move Inc. says its mortgage lead generation platform, PreQaulplus, is taking off, receiving more than $4 billion in mortgage requests during the summer buying season.

Citing the increase in mortgage prequalification applications, Move Inc. says it’s expanded the PreQualplus platform to accommodate multiple loan originators.

Move launched a lending site that included prequalification tools, MortgageMatch.com, in December 2010, with Houston-based Cornerstone Mortgage Co.

The companies said they planned to integrate MortgageMatch.com’s prequalification tools into Realtor.com to help homebuyers focus on homes they were most likely qualified to buy.

But Move and Cornerstone parted ways, and Move stopped offering loans through the site within a few months of launching it.

Last year, Move launched PreQualplus with MetLife Home Loans, the residential mortgage division of MetLife Bank, N.A. But in January, parent company MetLife Inc. announced that MetLife Home Loans was getting out of the forward mortgage business.

To keep PreQualplus alive, Move then partnered with Discover Home Loans Inc., an Illinois-based lender licensed in 49 states (all but New York). This week, Move announced that it had brought a second lender to the platform — Irvine, Calif.-based Intercap Lending.

“PreQualplus has expanded to support multiple mortgage originators and will continue to add loan originators to meet rising demand, particularly in the states of California, Florida and Texas,” Move said in announcing the addition of Intercap.

PreQualplus employs an automated underwriting process to evaluate consumers’ credit scores and their capacity to afford monthly mortgage payments using decision-making technology based on pricing, eligibility, underwriting, a full credit history review, credit risk analytics, and loan scenario modeling.

Consumers can access PreQualplus at PreQualplus.com or on Realtor.com by clicking on “Estimate My Payment” or “Get Prequalified Today” links on Realtor.com listing detail pages.

Rival real estate search portal Trulia got into the business of generating leads for mortgage lenders last month with the launch of a consumer mortgage rate and fee comparison tool. Participating lenders include First Financial Services Inc., BNC National Bank, West Star Mortgage Inc., Box Home Loans, CapWest Mortgage, North American Savings Bank, RoundPoint Mortgage Co., RMC Vanguard Mortgage and First Choice Bank

Zillow has been offering mortgage loan quotes from multiple lenders on its “Mortgage Marketplace” since April, 2008 — a service the company says generates more than 300,000 consumer loan requests a month.

Google launched a consumer mortgage comparison service in 2009 which became part of Google Advisor before being discontinued without explanation, Search Engine Watch reported in February.

via inman.com

Tenant fights fee for removing shabby carpet | Cross River Real Estate

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Q: I moved into my apartment eight years ago. At the time, the carpeting was in pretty bad shape with spots that wouldn’t clean or would come back after cleaning. By no means was it remotely “new,” as it appears it was the original carpeting installed when the building was built about 12 years ago.

After about five years of my tenancy, the carpet was lifeless, matted and fraying at the seams. There were issues on the stairs that were unsafe. The landlord was pretty dismissive of all repair projects, so I decided to remove the carpet and paint the floors.

Then recently, out of the blue, my landlord had an “annual inspection” for the first time in eight years and he noted the carpet was gone. He said I’ve cost him $800 and I would have to pay for replacing the carpet when I moved out. My contention is I saved him a lot of money by removing it at my cost!

I think I am a pretty good tenant, but you should know that I have been late with rent in the past. But I have a payment plan in place and am repaying back rent.

My concern is that he is charging me money to replace the carpet. I don’t think I should have to. He would have had to replace this carpet if I ever moved out.

Also, the dishwasher broke a while back and when I asked him to fix it, he said, “When you repay back rent, I’ll do something about it.” This was one of the amenities of the rental and now I don’t have use of it. Shouldn’t he have to fix it or lower the rent?

A: You have several issues here. First, the carpet does have a reasonable life and 10-12 years would certainly be about the most anyone could expect out of a typical apartment-grade carpet even with modest use and the best care. So I think your landlord needs to back off on the demand for the full replacement value of the carpet.

You correctly point out that the old carpet and pad would have to be removed and replaced before renting to a new tenant, and while the fact that you have already removed the carpet won’t likely save your landlord any money, it certainly won’t cost him much. In other words, the removal savings are offset by the fact that new tack strip will have to be installed.

The issue with the dishwasher not working and your landlord refusing to fix it or replace it until you pay the full back rent is a concern. You are correct again that the dishwasher was a feature or amenity of the rental unit when you moved in and the landlord needs to have someone out to look at it and either repair or replace it.

Q: You recently responded to a question about a roommate situation in which one of the roommates simply left over the weekend and the remaining roommate was stuck paying the full amount of the rent until he could find a new roommate that the landlord would approve.

This happened to me when my ex-girlfriend abandoned me and the lease, refusing to pay her half of the rent. I paid my half to the landlord to keep in good graces with him, but that is all I can afford. The landlord seems to be on my side, so my question is this: Can the landlord go after my ex instead of me for the defaulted balance, costs, etc., associated with her abandoning the lease?

I ask because I understand the landlord is entitled to and will get the unpaid or lost rent as well as damages to re-rent the property due to this breach of contract. I understand he can go after me or my security deposit if he wants. However, if the landlord wishes to just pursue the “guilty” party, is it possible for him to sue and collect from that party alone in any way?

A: As you seem to clearly understand, you and your roommate are “joint and severally”

responsible for the full amount of the lease as well as all of the other terms such as damage. This legal language essentially means that you are both (joint) and individually (think of severe as in separately) obligated for all the legal and financial aspects of your lease.

Yes, your landlord could choose to understand your situation in which your roommate suddenly abandoned the rental unit and left you responsible for the full amount of the rent. He could decide that you are not responsible for the “other half” of the rent. There is no legal restriction other than a landlord needs to be cognizant of fair housing laws and not allow some tenants grace while punishing others.

However, in my 30-plus years of experience, not too many landlords are willing to agree that a roommate paying “his half” is not obligated for the full rental value. Most landlords have mortgages and need the full rental income to cover their ownership and operating expenses. So, if your landlord is willing to make an exception for you, I’d say you are a very lucky person and have a great landlord.

via inman.com