Durham Region Real Estate Information

Did you know?...

The Real Estate Council of Ontario (this industry's self-governing body) requires real estate agents to work for either the buyer or the seller.

If you are not proactive in hiring your agent to represent you, then "your" agent may in fact be working for the seller of the house you eventually buy. This could lead to a huge conflict of interest between the parties involved and leave you without the representation you are entitled to.

When a seller puts their home on the market, they sign a listing contract with their agent to both represent and put their interests first.

When a buyer wants representation, they hire "their" agent by signing what is essentially the same contract but is know under a different name, The Buyer Representation Agreement.

Durham Region Home Ownership:

Accelerated bi-weekly payments can put thousands of dollars back in your pocket without the need to save up lump sum payments and with today's low interest rates you would be crazy not to use this mortgage eating technique.

Just divide your monthly payment by two and pay that amount every two weeks.  For example, if your monthly payment is $1,454, your bi-weekly payment would be $727.  There will be 26 payments over the course of the year -- equivalent to 13 monthly payments.  You'll be slipping in an extra payment each year without ever noticing it. 

On a mortgage of $250,000 amortized over 25 years with 5 year interest terms of 5%, you’d save over $31,000 and pay your mortgage off nearly 4 years sooner with an accelerated bi-weekly payment schedule as opposed to traditional monthly payments. Plus, this is after-tax money since our mortgages in Canada are not tax deductable.

Another techique to knock down the mortgage is to apply an extra 100 or 200 dollars to each payment and ask your bank to put that money right towards the principal. Using this technique on a variable mortgage will cushion you when interest rates begin to rise and also help you to pay your mortgage faster!

Interest rates are at Generational lows. This is the time to take advantage of home ownership and build equity faster than ever before!

Astrum Financial Services Update -

As an Astrum Member, I can provide you with access to exclusive mortgage rates that are not available through any other mortgage broker or chartered bank in Canada. These low rates could save you several thousands of dollars on your mortgage!

It's easy to apply and the entire process can be completed from the comfort of your home. Call us for details and we will show you how to get started.

Great Mortgage Rates:

1.70%   5-year variable/closed

2.79%   3-year fixed/closed

3.39%   5-year fixed/closed

Terms and conditions apply. Mortgage rates subject to change. Available mortgages only and subject to Astrum Financial Services Inc. lending criteria for residential properties. Transaction must include an AstrumStar member. Astrum Financial Services Inc. reserves the right to discontinue or amend the terms and conditions at any time. Astrum Financial Services Inc. FSCO #11936.

Heated housing activity throughout 2009 lends little air to bubble theory in the GTA, says RE/MAX

Single-detached housing values remain slightly off peak 2008 levels in 27 per cent of TREB districts

Mississauga, ON (January 28, 2010) - Despite limited inventory levels in the Greater Toronto Area (GTA) in the latter half of the year, double-digit price appreciation failed to materialize in the single-detached housing category in 2009, says RE/MAX Ontario-Atlantic Canada.

In fact, an in-depth analysis by RE/MAX of 63 districts within the Toronto Real Estate Board found that detached housing values in 27 per cent of districts remained slightly off 2008 levels, while 57 per cent reported price appreciation of less than five per cent in 2009. Sixteen per cent of districts recorded an increase in average price in excess of five per cent. No double-digit gains were noted.

"There is simply no evidence of a housing bubble," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "While sales were up considerably over one year ago-and supply was tight in many of the city's hot pocket areas-the expected surge in average price did not occur. Buyers remained cautious in their pursuit of homeownership-with most unwilling to overpay for the privilege."

Progressive changes are coming to Whitby with regard to accessory apartments and anyone thinking of buying a rental property, or who wants to add one to their existing home, should take note.

The proposal is that an amended bylaw will handle applications for secondary units in homes on a general basis. This includes permitting accessory apartments in single detached dwellings with a minimum frontage of 10.5 metres and semi-detached dwellings with a minimum frontage of 10 metres, as long as they comply with safety standards.

What this really means is that if you want to have a basement apartment and are not legally zoned for one, you'll no longer have to spend the $6,000.00 to apply to a zoning amendment; you simply have to comply with the by-law and safety requirements. My interpretation is that as a landlord, you'll no longer face the threat of being "shut down" because of a zoning infraction. That is huge.

It is important to comply with safety standards, which implies fire safety. Failure to address fire safey compliance could mean big trouble if there was a fire or claim against you by a tenant. There is always a chance your insurance provider could contest the claim if it were proven you didn't comply with fire safety standards.

Visit the Town of Whitby website for more information.

From a real estate perspective this will create more value for homes with basement apartments and make it more attractive for those home buyers or investors who want to purchase with the idea of renting. When done properly, this is a win-win-win for all parties involved; the landlord, the tenant and the municipality.

Now that home loans are the cheapest they've been in over a generation...how do you get one?

• Go to your local bank branch (only recommended if you already have a mortgage there)
• Ask your Realtor (will recommend lenders they deal with) and ask your Realtor if they are getting a referral fee from the lenders they recommend
• Look on the Internet
• Check your credit score by ordering "Score Power" or visit www.Equifax.ca. Cost is $23.95 Cdn and can be ordered right over the Internet.

That's the skinny of it.

Here are a few more points that you may not know:

It pays to know your credit score right from the start. If it's high, you may be able to negotiate better rates.

Mortgage Brokers can compare rates among different lenders. They are very accessible and can work with you in their office, over the phone or at your home. They are also great for people with credit blips or situations that are "outside the box."

Most of the big banks have Regional Teams of Moblie Mortgage Managers. If you're going to deal with one of the major banks, this is the way to go and any Realtor can hook you up with one. They are accessible 7 days a week, service is better and rates may even be better than at the branch level.

Get a full mortgage approval prior to looking at homes. You may save thousands of dollars more off the purchase price of the home you're buying if you can give your agent a full mortgage approval right up front.

Your lender must run a "Credit Report" as part of your mortgage approval. An over-the-net pre-qualification is not an approval for financing.

We are pleased to be able to Offer the best rates in Canada, not only to our Buyers, but to the clients of any Agents who are purchasing one of our properties. Here are the rates at the time of posting this notice:

1.75%* 5-year variable/closed

2.89%* 3-year fixed/closed

3.45%* 5-year fixed/closed

* Terms and conditions apply. Mortgage rates subject to change. Available mortgages only and subject to Astrum Financial Services Inc. lending criteria for residential properties. Transaction must include an Astrum member. Astrum Financial Services Inc. reserves the right to discontinue or amend the terms and conditions at any time. Astrum Financial Services Inc. FSCO #11936.

This article is a reprint of a recent Re/Max press release. I'm offering a quick analysis just following the article... 

Housing performance expected to accelerate in 2010, as economic stability returns to Canadian markets, says RE/MAX

Fifteen markets to set new records for average price in 2009

In the midst of one of the most tumultuous economic periods in recent history, residential real estate has proven to be a safe harbour, with sales and average price expected to post gains in most major Canadian cities in 2009, according to a report released by RE/MAX.

The RE/MAX Housing Market Outlook for 2010 examined residential real estate trends in 23 markets.  The report found that sales are forecast to recover in almost all major centres by year-end 2009, led by an anticipated 45 per cent increase in Greater Vancouver. Two markets --Ottawa and Quebec City -- are expected to hit historic highs in the number of homes sold.  Average price should post new records in 65 per cent of markets surveyed this year.   As economic performance ramps up across the country, so too will residential real estate.  Eighty-three per cent of markets (19/23) are expecting sales to increase over 2009 levels while housing values are forecast to escalate in 91 per cent (21/23) of Canadian centres in 2010.  The remaining markets will match 2009 levels.

Approximately 465,000 homes are expected to change hands nationally in 2009, a seven per cent increase over one year ago.  Canadian housing values are forecast to close the year at $318,000, up five per cent from $303,594 in 2008. By year-end 2010, the number of homes sold is predicted to climb another two per cent to 475,000 units.  The average price of a home is also expected to experience an uptick, rising two per cent to $325,000 – the highest level in Canadian history.

2009 was, without question, the year of the house.  Real estate not only defied industry and analysts’ predictions in 2009—it’s performance went well beyond the realm of expectation by boosting consumer confidence levels and ultimately kick starting the national economic engine.  While low interest rates were a principle factor driving home buying activity, no one can discount the value that Canadians place in owning a home.

The upswing in residential housing values speaks volumes.  By year-end 2009, average price is expected to increase in 15 of the 23 markets surveyed, led by St. John’s, NF (15 per cent); Quebec City, QC (eight per cent); Regina, SK (seven per cent); Saint John, NB (six per cent); and Winnipeg, MB, Ottawa, ON, and Greater Toronto, ON (five per cent). Other noteworthy developments include shattered price benchmarks in Greater Vancouver at $600,000; Toronto at $400,000; Ottawa at $300,000; and Quebec City and St. John’s at $200,000.   St. John’s will once again lead the country in terms of percentage increase in average price in 2010 with a projected upswing of 11 per cent.  Quebec City and Regina are expected to experience escalation of six per cent, while Calgary, Kelowna, and Victoria are forecast to climb five per cent next year.  Victoria, Kelowna, Edmonton and Calgary – all down marginally in 2009 – are all positioned for growth in 2010.

Some of the greatest percentage gains were reported in Western Canadian markets in 2009– demonstrating the higher the peak, the lower the valley.   That said, the recession barely registered on year-over-year activity in most major centres.  The economic fundamentals in place going forward ideally position the ten provinces, and the sector overall, for further growth.

The major frontrunners in terms of unit sales appreciation in 2010, are all located in Western Canada , including Kelowna with an anticipated upswing of 10 per cent in housing sales; Calgary with an expected increase of eight per cent: and Victoria, which  rounds out the top three with a seven per cent hike forecast for unit sales. 

A number of factors will help prop up activity going forward, including improved economic conditions, continued low interest rates, rising consumer confidence and solid capital spending which will buoy employment.  Inventory will once again assume the wildcard role, with any decline placing upward pressure on prices.  Multiple offers will remain the exception in most markets, more commonplace on quality entry-level product which remains in tight supply. 

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Analysis:

 Forget about 2010 forecasts. The market has been exceptionally strong since June of 2009. Demand continues to be high. Sales year to date are 11% higher than for the same period in 2008.

What is the key to getting the highest price? The answers to this question continue to elude many home-sellers. With continued low interest rates, strong immigration to the Durham Region and stable house prices the current and upcoming periods will remain among the best opportunities for the first time homebuyer, move-up buyers and investors in real estate.

 GTA REALTORS® Report November Resale Housing Market Figures

 TORONTO, December 3, 2009

 Greater Toronto REALTORS® reported 7,446 sales in November – slightly more than double the November 2008 result when GTA home sales had dipped makedly due to the economic downturn. Year-to-date sales were up 14 per cent compared to the first 11 months of 2008.

“Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.”

The average price for November transactions was up 14 per cent year-over-year to $418,460. The average price year-to-date was up four per cent to $394,464.

“Very strong annual growth rates for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter," according to Jason Mercer, TREB's Senior Manager of Market Analysis.

“As we move into the spring, growth rates will move to more sustainable levels.”