April Experiences Record Number of Buyers and Sellers

Durham Region, Ontario - Wednesday, May 12, 2010

Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries. “The GTA resale market is functioning properly. Sales were high as buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour.

“More balanced market conditions will result in sustainable rates of annual price growth in the second half of 2010.” The average price for April transactions was $437,600 – up 13 per cent compared to the average of $385,641 recorded in April 2009. “Home sales continue to be driven by many different segments of the market, with sales growth for all major home types in both the City of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales will remain strong in the second half of 2010, but will slip from the current record pace as borrowing costs rise.”

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.

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.

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."

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.

• 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.

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.

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.

 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.” 

In the first two weeks of November, Greater Toronto

REALTORS

® reported 3,666 sales – up 84 per cent compared to the first two weeks of November 2008. The average price for these transactions was up 10 per cent year-over-year to $415,066.

Increased interest in ownership housing has been widespread throughout the GTA and across all housing types,” said Toronto Real Estate Board President Tom Lebour.

“However, it is important to point out that we are now making comparisons to the fall of 2008 when we experienced a marked decline in sales and average price”

Year-to-date sales, at 78,233 are up 11 per cent compared to 2008. Average price, at $393,180, is up by three per cent. “Sales and average price in the GTA this winter will be well above levels reported throughout the fourth quarter of 2008 and the first quarter of 2009," according to Jason Mercer, TREB's Senior Manager of Market Analysis.

It's anticipated continued low interest rates will keep demand high through the first half of 2010. The implementation of the HST Tax is expected to add approximately $1,500.00 to the cost of purchasing the average resale home, to take effect July, 2010.

It's commonly assumed that bank-owned homes are a real steal and one should run out blindly and buy it, but that's not always the case.  Although it's true that banks are motivated to get these homes off their books, they treat each transaction like a business and do their best to minimize their losses. 

Additionally, under the Canadian Bank Act the Lender is obligated to attempt to get fair market value for the property.

When considering buying a bank-owned home, you need to be as prudent as you would be in any big purchase.  Be sure to check comparable homes for sale and make sure you are getting a good buy, taking any costs to remediate into consideration.

We run comparable reports for our buyers before they make an offer, whether it's a typical sale or a distress sale.

I was scouring listings and ran across this one. With interest rates so low I just recently purchased an investment property (my first) so I'm always on the look out. As I read through the fact sheet on this property the numbers looked so good I just had to investigate further.

This property is a Cash Cow. If you can make 100 or 200 dollars positive cash flow per month after principal, interest and taxes...that's considered good on an investment property. I ran a number of scenarios on this property and arrived at a positive monthly cash flow range of an unbelievable $890.00 p/month to $1,277 p/month.

Not only does it provide positive cash flow, it provides a monthly income!

Here's a partial run-down:

The main level apt. is rented at $1,350 monthly. The basement is rented at $950 per month. Total monthly income = $2,300.00

Let's assume you paid full list price of $220,000 rounded (which you wouldn't) and put 5% down. With CMHC insurance fees added in you would be financing  $215,000 on the purchase assuming you bought it a full list price. I make conservative assumptions because this builds in a safety net to your calculations.

Assuming a 5 year mortgage at 4.09% amortized over 25 years your monthly payments with property taxes comes to $1,409, leaving a net profit monthly of $891.00.

At a variable interest rate of 2.85% (and you can do better than this with good credit) with a 35 year amortization the monthly payments with property taxes comes to $1,074, leaving a net profit monthly of $1,226.

Or...you could live in the basement and continue to rent the main floor. You would be living for FREE while someone else pays your mortgage!

I'm surprised this one's still on the market and if I hadn't just purchased a rental I would be making an offer myself.

If you prefer Whitby, a semi-detached unit was just listed at 234,900. It also contains two apartments however it has a legal retrofit certificate.This is worth alot of money as all the conversion costs have already been done to make this both legal and fire safe. Again, the double income makes this a cash cow as well.

If you're thinking of an real estate as an investment just give me a call. We're always on the lookout for good value properties.

In the first two weeks of August, the Greater Toronto Realtors reported a 27% increase in sales compared to the first two weeks of August 2008 for a total of 3,832 sales.

The average price for these transactions was up 3% over the same period last year.

Year to date sales for 2009 are up very slightly from 2008 while the average price is down by less than 1/2%.

Clearly, low interest rates and reasonable home prices are having a very, positive effect on the housing market in Canada.

Here's what a hard day at the Office looks like. I ordered a red, white and blue balloon from my favourite dollar store but when I wen to pick them up for this Open House, there white one was missing. My friend was out of stock and the only white one he had said "Just Married" on it. Those who know my business know that almost half of our sales involve marital split-ups so I didn't think that would have been a good idea.

Anyway, we carried on with primary colours and had a busy Open House. Actually, even though this chews up a Sunday, we enjoy meeting all the folks who come out to our Open Houses. Some weekends we've run 3 or 4 at a time. With the up and down economy, Open Houses have been doing very well...almost making a come-back as a great way to meet people and answer questions.

And we don't forget the TimBits, either!

July 6, 2009 -- In June 2009, Greater Toronto REALTORS® reported a record 10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.¹

“The record result in June is testament to the fundamentally sound housing market in the GTA,” said TREB President Tom Lebour. “An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market.”

The average price for June transactions was $403,972 – up by two per cent compared to the same month last year.

“The re-emergence of seller’s market conditions has exerted upward pressure on home prices,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis. “Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing.”

¹Seasonally adjusting TREB MLS® data removes recurring seasonal trends observed each year. For example, MLS® sales are highest in late spring each year and lowest in the winter months. Removing the recurring seasonality, allows for the analysis of a meaningful trend reflecting actual changes in market conditions. By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how the current month relates to historical annual figures.

Median Price

In June the median price was $345,000, from the $335,250 recorded during June of 2008.

Clearly, the first half of the year heavily favoured home buyers. Demand for homes has increased due to low interest rates and some price softening in the first half of 2009. With less inventory, the market is now leaning more towards Sellers. If inventory continues at current levels and economic fundamentals remain the same or even improve, pressure on prices will gradually increase. While some buyers were waiting for prices to continue their descent, that opportunity may now have passed. Seasonally, July and August have always been some of the best months to purchase a home, from a negotiating point of view and many homes are priced very reasonably. It's still a great time to buy.

W.B.

 Hey -

You've got to watch those people! The above email came in this past weekend and it was so gratifying to hear a good news story from one of my past clients. It's also nice to know that we can help with real estate-related issues, not just buying and selling homes.

It proves the point that you've got to pay attention to these assessments or you could be paying the taxman way more than you should...or they deserve. Another client of mine received a substantial reduction in his tax assessment...over $100,000.

The MPAC website has made it very easy for you to compare properties in your neighbourhood if you spend the time to take advantage of it.

Now, if we could just keep the mill rate down!

What a great day for charity with the Re/Max Yard Sale For The Cure. On May 30th over 40 Re/Max offices (including ours) raised over $90,000 in

just one day in support of breast cancer research and treatment!

Way to go!  We're staying in shape (sort of) for our 5km Run For The Cure in

the Fall in Oshawa and I just might be asking for a small donation!