Real Estate Information Archive

Bob Aaron recently reported in a Toronto Star article that a landmark consumer protection initiative proposed by the Tarion Warranty Corp., would require that Builder Purchase Agreements set out in one place all the extras that can be added to the price of a new home.

Anyone who has purchased a new home in the past understands the frustration of all the hidden costs that aren't set forth up front, resulting in "sticker shock" for the purchaser or worse yet, an inability to raise the necessary funds.

Read more of this article here.

45 Muskoka vacation/investment properties will be on the auction block in Toronto this December 4th. This is the first real estate auction (but not the last) to be held in Toronto.

The Real Estate Centre Team held a seminar last Sunday that was hosted by Dean Cullum, Senior Auctioneer with Kennedy Wilson in California. Dean will be the auctioneer at the event on December 4th. This seminar was extremely well attended and took the participants through the entire auction process.

Business News Network recently interviewed Mr. Simon Gianinni, spokesman and team leader for The Real Estate Centre Team at Royal LePage Signature Realty and I've posted that interview here.

Though new to the Toronto area, real estate auctions are common in both the United States and Austraila. You can still register for this event but you must register, it is closed to the general public. You can also attend as my VIP guest but you must register now. This is a great way to see the auction process first hand where the buyer bids in an open and transparent process and where the buyers actually set the market value of the properties to be sold.

Call 1-888-954-5-4100 or email keith@durhamrealestatecentre.com

Our Real Estate Centre Team, together with Royal LePage has partnered with California based Kennedy Wilson Auction Group, set to take place at the Westin Harbour Castle Dec 4 2011.

Auctions are rare in Canada, but more common in Australia, Europe, and the U.S.

This will be the first time Toronto has hosted a real estate auction.

On the block are 45 Lakefront condos located on Lake Muskoka. With original prices as high as $650,000, and opening bids starting at just $85,000, this event is attracting a lot of attention.

For more information and a complete information package go to www.MuskokaAuction.com

or just reply to this email, or call me directly!

To help potential Canadian buyers with the new auction experience, we are also offering a FREE Information Seminar on “HOW TO BUY AT AUCTION” here at our office on Sunday, Nov. 27^th 2011 at 1 pm to registered bidders. It will be held at our Toronto Office and I'll be car-pooling clients in for the event.

For anyone serious about finding a great deal in real estate, this is a MUST ATTEND event!

Greater Toronto REALTORS® reported 7,642 home sales through the TorontoMLS® in October 2011. This represented an increase of 17.5 per cent compared to the 6,504 transactions reported in October 2010.

Monthly sales data follow a recurring seasonal trend that should be removed before comparing monthly results within the same year. After adjusting for seasonality, the annualized rate of sales for October was 97,100, which was above the average of 90,700 for the first three quarters of 2011.

"The pace of October resale home transactions remained brisk in the GTA. This bodes well for a strong finish to 2011," said Toronto Real Estate Board President Richard Silver. "Home buyers who found it difficult to make a deal in the spring and summer due to a shortage of listings have benefitted from increased supply in the fall."

The average selling price through the TorontoMLS® in October was $478,137 – up eight per cent compared to October 2010.

"Sellers' market conditions remain in place in many parts of the GTA. The result has been above-average annual rates of price growth for most home types," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "Thanks to low interest rates, strong price growth has not substantially changed the positive affordability picture in the City of Toronto and surrounding regions."

In Durham Region, the average re-sale price year to date is $317,447.00 with an average selling time of 30 days on market.

THANK YOU...to our circle of lenders and economic advisors who share their candid opinions with us on an on-going basis.

One of my favourite advisors commented it was a busy week last week in world-wide financial circles and it boils down to this:

The Bank of Canada announced that it's maintaining its target for the overnight rate at 1% (mortgage rates should hold steady) and that it expects growth in Canada to slow through mid 2012. It also expects the Canadian economy will expand by 2.1% in 2011, 1.9% in 2012 and 2.9% in 2013.

She also commented " Early Thursday morning while most of us were asleep, European policymakers meeting in Brussels, forged a deal where private holders of Greece’s government debt agreed to a voluntary write-down of 50%. There were worries that a default by Greece would weigh heavily on European banks, could cause another credit crunch like that seen in 2008, and seize already fragile global economies."

What does it all mean, she concluded? "Well, on Monday kids are going to ring your doorbell looking for candy, interest rates will remain low and people will continue to buy and sell homes."

My own conclusion is that we are extremely fortunate. If you're looking to buy a home, interest rates are very attractive. If you're looking to sell, there are buyers in the market and well priced homes are selling. If you're in need of credit repair or debt reduction in your household, this is an excellent time to do it and there is a lot of support in the marketplace to help you. If you need someone to talk to, our circle of lendors are happy to help you lay out a plan to reduce debt or improve your credit score.

So how is it for your household? If the cup's half full then you have a lot to be grateful for, finances are on an even keel and though the economy is not booming, you are getting by in good order.

If the cup's half empty, this is a good time to turn it around. Developing new job skills, reducing bad debt, improving credit scores; there are many resources available to help you make that glass half full again.

These just released statistics provide an interesting snapshot on the market in the Greater Toronto Area. A whopping 76% of the homes sold over $300,000. Without dating myself, 350K in our area used to buy a mansion!

You guessed right if you said most of the homes (6%) that sold between $110,000 and $200,000 were sold in the Oshawa area. In the Whitby area, nice townhomes are pushing $300,000...higher if you're looking in Ajax/Pickering.

Toronto, October 24, 2011 — Greater Toronto REALTORS® reported 5,770

condominium apartment transactions through the TorontoMLS® system in the

third quarter of 2011, representing a 24 per cent increase over the same

period in 2010. The average selling price increased by almost nine per cent to

$333,352.

“Condominium apartments have accounted for about one‐quarter of total

existing home sales in the GTA this year. This share is expected to increase

moving forward, as new home sales and construction has become increasingly

driven by high‐rise construction,”said Toronto Real Estate Board President

Richard Silver.

In line with new home sales and construction trends over the last few years,

condominium apartment completions have been high so far in 2011. When

condo projects reach the completion stage, investors and end users whose

housing needs have changed often list their units for sale or rent.

“The average annual rate of price growth remained strong in the third quarter,

despite the upward trend in completions and active listings. This is because

the pace of sales remained brisk, keeping sellers’market conditions in place,”said

Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

Greater Toronto & Durham Region REALTORS® reported 10,230 home sales through the TorontoMLS® system in June 2011 – up 21 per cent compared to June 2010. This number represented the third best June result on record behind 2007 and 2009. The number of transactions during the first six months of 2011 amounted to 48,189 – down by 4.5 per cent compared to the first half of 2010.

"The strong June result capped off an interesting first half of 2011," said Toronto Real Estate Board President Richard Silver. "The pace of sales was a bit sluggish at the beginning of the year, but rebounded in May and June. Because of the positive affordability picture, home buyers remained confident in their ability to purchase and pay for a home over the long term."

The average price for June transactions was $476,371 – a 9.5 per cent increase over June 2010. Through the first six months of the year, the average selling price was $467,169 – almost an eight per cent increase compared to the same period in 2010.

"While sales have been strong, we would be on track for a record number of transactions in 2011 if not for the decline in listings so far this year," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "Tight supply meant more competition between home buyers and an accelerating annual rate of price growth in the second quarter."

"Home owners will likely react to the stronger price growth by listing their homes in greater numbers. A better supplied market would result in more moderate price increases," continued Mercer.

Median Price
In June, the median price was $405,000, from the $367,750 recorded during June of 2010.

Here is a basic chart of mortgage interest rates now compared to last year and 5 years ago. The lower the mortgage interest rate, the more home you can afford.

The Toronto Real Estate Board states that the low rates today have increased home ownership affordability, in spite of increased prices. This is true and what is also true is the the large price increase are more common in the City of Toronto and less common in Durham Region resale homes.

It is a good time to use "other peoples money" for what is considered "good debt," being the roof over your head.

We have other strategies to save you money on the purchase of your next home. Call for a Free Buyer Consultation to see just how much you can save on your next purchase!

We have appointment times available Monday and Wednesday evening and Saturday and Sunday afternoon. Call Keith Williams today at 905-668-1800.

What else can you do in the Dog Days of Summer but talk about mortgage rates.

I think people are pretty aware of the rates these days but really, when I look at the Variable Rate it's still hard to believe. Imagine how quickly you could pay ahead on your mortgage by having a variable rate and also making lump sum payments. Consider that even making one extra payment a year (usually call bi-weekly payments) will decrease your mortgage life by around 4 years!

Here are the current rates from one of the brokers we use in-house, Crescent Mortgages. Paula does a fantastic job with my clients but I better also mention Marshall Spencer as well at Spencer Group Mortgages. These brokers do absolutely great work for our Re/Max clients, are informative and easy to talk to and are available 7 days a week and evenings!  Here are the rates

Enjoy your summer!