Greater Toronto REALTORS® reported 4,567 sales through the TorontoMLS® system in January 2012. This number was 8.8 per cent higher than the 4,199 sales reported in January 2011. Sales growth was strongest for low-rise home types in the regions surrounding the City of Toronto.

“A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership,” said Toronto Real Estate Board President Richard Silver.

“The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum,” continued Silver.

The average selling price for January 2012 transactions was $463,534 – up by almost nine per cent compared to January 2011.

“Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year. Strong price growth is expected to attract more listings. A better supplied market should result in a slower rate of price growth, especially in the second half of 2012,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

I believe there has never been a better time to buy a home. I haven’t seen so many positive signs for housing, whether you are thinking of buying or locking in a mortgage.

Here’s why:

Mortgage rates at historic lows: They can’t get any lower. Four to five-year fixed mortgages at 3 per cent are unheard of. It is lower than the variable rate that most Canadians have been paying for years. Rates have nowhere to go but up, either later this year or next. If you are paying a variable interest rate, lock in now.

Canada’s appeal: This country has everything going for it — a stable banking and political environment, steady real estate market, the natural resources people want and few social tensions. That makes us a safe haven in a volatile world.

Our immigrant draw: Because of the above, we’re a draw for immigrants, often wealthy ones. When they get here, they need a home. So in my view while the real estate market may level off in some areas of Ontario, it should stay strong in most of the GTA and likely Canada’s other large urban centres as well.

Mortgage defaults: According to CMHC, over 99 per cent of Canadians pay their mortgages on time. It's quite a different picture in the U.S. where 7 million homes are in foreclosure and perhaps another 7 million homeowners are under water. This represents almost 15 per cent of all homes. So while the American housing market will likely be weak for the next few years, this should not occur in Canada. Our banks are not dumping homes onto the market, so there is no downward pressure on prices.

Recourse Mortgages: In many U.S. states, if you can’t pay your mortgage, the only thing the bank can do is foreclose; they cannot sue you for any shortfall. So when homes go under water, owners give the keys back to the bank. In Canada, loans are almost all Recourse, meaning if you don’t pay and there is a shortfall, the lender can sue you for the difference. This is another reason why, in my opinion, even if times do get tough, Canadian homeowners will find a way to make the payments until things improve.

Income-to-price ratio: Another misleading statistic is that in major markets, like Toronto, the average price of a home is now 4.6 times the income of the average Canadian. This same statistic was found just before the U.S. and UK markets went into the tank. However, if you look at median incomes of Canadians against the median cost of homes, this average comes down to around 3.5, which is not dangerous. Using averages are wrong. A person receiving social assistance will not buy a home, and should not be included in any relevant statistic.

High consumer debt: The warnings about rising debt ratios must be examined carefully. The Governor of the Bank of Canada is worried that the average personal debt ratio is now 156 per cent in Canada. This means a household making $100,000 per year, owes $156,000, two-thirds of which is mortgage debt. Why is this so bad? At an interest rate of 3 or even 5 per cent, the amount needed to service the debt is manageable. Most people do not pay off their mortgages in one year. Still, this is another good reason to consolidate your debt now, at these low interest rates, and lock in.

No guarantees: Nobody can predict the future and there’s always the possibility of a major economic shock. Yet, in a U.S. presidential election year, politicians will do whatever is necessary to prevent it. If the economy goes into the tank, so do re-election chances. The U.S. is already showing signs of economic recovery.

No matter what, do not take on a monthly payment higher than what you can afford. Meet with your lender or mortgage broker in advance to figure out what you can afford before you start looking for a home. It may be the best time to buy, but you need to buy smart.

Source:  Mark Weisleder in Moneyville.ca.

As part of our launch, EA Canada is offering 2 month rebate for the first year when you sign up through our website by clicking here

On February 15 we will conduct a draw to award a FREE 1 year home protection package. You are automatically registered by going to our Facebook page and clicking the "like" button on the main page. Go to www.facebook.com/keithwilliamsteam

Royal LePage House Price Survey (Q4)

Also in the news today, the Bank of Montreal made history by pegging it's 5 year fixed mortgage rate at a whopping 2.99%, the lowest that rate as ever been in Canada.

We posted an update on the move by BMO that you can read by clicking Here.

The Durham Real Estate Centre Team is proud to announce it's now offering the EA Canada Home Assurance Program as an added benefit to our Home Sellers and Buyers; helping our clients to purchase and sell homes with a higher degree of confidence.

Europe Assistance Canada is the company you've never heard about yet it offers Travel Assistance, Health Assistance and Home & Family Assistance in over 200 countries and employs a staff of 7,000 utilizing approximately 420,000 service providers world-wide.

In Canada they now offer their Home Assurance Program and we were more than impressed with the competitive features (consumer friendly) they offered over and above other players in the industry.

I bought a plan myself, just to be real about this. The benefits we were thrilled with include:

• No Contract
• Portable - take it with you to your next home
• Cancel anytime
• A multitude of single and bundled plans
• Minimal wait times and much more

Though huge, this company walks the talk and has surpassed our expectations!

To help increase awareness we will be holding a Facebook Competition to award a 1 year FREE plan to a lucky winner (details coming) and EA Canada is offering a 2 Month Premium Rebate to any customer who enrolls in the plan (details shortly) through our website or Facebook Page during this promotion.

You can click on their logo above to research information on the plans and the company and to view frequently asked questions (FAQ) about the plan.

We've had a fantastic experience with this company and hope you'll check them out. I would be appreciative of any comments you may have!

As seen below, housing prices have steadily increased however the affordability has remained fairly consistent in the 30 to 35 per cent range. Both charts owe their success to the current low interest rate environment. This will remain as long as world economic activity remains fragile.

Eventually, things will pick up and you'll hear it in the news. When output and hiring eventually rev up, expect interest rates and your carrying costs to increase. This is why Canada's Finance Minister and Bank of Canada Governor are saying "get your financial house in order now," so that when the inevitable rate increases come, you can absorb the higher rates when your mortgage renews. Good advice.

“Low borrowing costs kept Buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said TREB President Richard Silver. “If Buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area,” added Silver.

The average selling price in December was $451,436 – up four per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average of $431,276 in 2010.

“Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,”

Recently we decided to dig into the reports and marketing data to see if it supported our feeling that winter is the best time to buy, and the worst time to sell. However, when we got the results we discovered that our assumptions were dead wrong.

As we roll through the holidays and into winter, many would-be sellers will be holding off on listing their home, waiting for the spring "selling season" to put their home on the market. But if you're ready to sell your home now, is waiting until spring the best strategy? Not according to the data, it isn't.

We pulled a year's worth of data on three quarters of a million homes listed across the country and analyzed sales statistics by season. Here's what we found:

• Homes listed in winter sell faster: 46 days in winter vs. 55 days in summer

• Homes listed in winter are more likely to sell: 59.2% sell in winter vs. 53.1% sell in summer

• Homes listed in winter sell closest to their original price: a 2.7% drop from the final price in winter vs. a 5.2% drop from the final price in summer, worth more than $7,000 on a $300,000 home

Homes listed in winter sell best.
Yup, you read that right: Overall, homes listed in winter sell best. 5.8% more homes listed in winter eventually sell (compared to the overall percentage of homes listed throughout the year), and they sell 1.4 percentage points closer to their original list price than the median---that's $4,900 on a $350,000 home.
Spring wins in one category: Speed. Homes listed in spring sell the fastest, sitting on the market for 15% less time than the median. Winter comes in second in this category though, at six percent below the median, while homes listed in summer and fall both sell slower than the median (12% and 16%, respectively).

(Thanks to Blackwater Consulting Group and REDFIN blog for publishing this information so we could share it with you.)

A good friend and client of ours creates beautiful urn inserts and centerpieces for the holidays! Her prices are extremely reasonable (about half the cost). Urn inserts are only $60. Centrepieces are less.

To email Karen directly click:

meyerfam@andrewswireless.net

If you prefer to call or speak with Karen directly just let me know and we'll put you in touch with her!

BROOKFIELD RESIDENTIAL PROPERTY SERVICES ANNOUNCES ACQUISITION OF PRUDENTIAL REAL ESTATE AND RELOCATION SERVICES
Acquisition creates global residential real estate and employee relocation services leader

(Toronto, ON) December 6, 2011 - Today Brookfield Residential Property Services (“Brookfield”), a Brookfield Asset Management Inc. affiliate, announced that it has purchased Prudential Real Estate and Relocation Services (“PRERS”), a recognized leader in employee relocation and real estate franchising from Prudential Financial, Inc.  Prudential Relocation Services operates as Pricoa Relocation in Asia and Europe.

The addition of PRERS to Brookfield’s existing residential real estate franchising and employee relocation services businesses establishes Brookfield as the world’s second largest employee relocation services provider and the third largest residential real estate franchising business.

Under a licensing agreement, Prudential Real Estate brokerage affiliates will be able to continue to use the Prudential brand based on the terms of their franchise agreements. 

“This transaction creates a global employee relocation services and real estate franchising leader,” explained Graham Badun, CEO, Brookfield Residential Property Services. “We have now increased the breadth and depth of our service offering, keeping pace with the evolving needs of our clients around the world.”

A North American & Global Leader

Through its various brands, Brookfield’s residential real estate franchisees are now present in all 50 U.S. states, 10 Canadian provinces, Mexico and Portugal, with a network of approximately 80,000 real estate agents, 2,800 real estate brokerage locations and more than $150 billion in annual residential real estate transactions.

U.S.-based Brookfield Global Relocation Services moves nearly 85,000 families in and out of over 125 countries around the world each year. With the acquisition, more than one-third of Fortune 100 companies are its clients.  In addition, Brookfield is now the largest provider of relocation services to government, with long term relationships with the U.S. and Canadian governments. 

The acquisition greatly strengthens Brookfield’s existing U.S. business and results in the expansion of its operations in nine countries, with a rapidly growing presence in China, Brazil and India.

“Today, Prudential’s real estate and relocation services businesses join a global company with a track record of over 100 years of success,” said Earl Lee, President of Prudential Real Estate and Relocation Services. “We’re excited to become part of a company that is focused on and deeply immersed in the real estate sector and is in the business for the long-term.”

Earl Lee will continue to lead the U.S. real estate business, and Rick Schwartz, President, Brookfield Global Relocation Services, will assume responsibility for the combined global relocation services business.

Brookfield’s parent company, Brookfield Asset Management, is a global asset manager with approximately $150 billion in assets under management.  Brookfield is co-listed on the New York and Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA.

About Brookfield Residential Property Services 
Brookfield Residential Property Services is a leading global provider of real estate and relocation services, analytics and knowledge.  The company’s portfolio consists of leading brands, including Brookfield Global Relocation Services, the second largest provider of global relocation services, Prudential Real Estate and Relocation Services, Brookfield Real Estate Services, Royal LePage, Real Living, Via Capitale and Centract.  Through its real estate brands, it has nearly 80,000 real estate professionals in more than 2,800 locations, who transact over $150 billion annually.  Its global footprint spans North America, the United Kingdom, France, China, Singapore, India, Brazil and Australia, and includes more than 2,500 employees worldwide.  It is a division of Brookfield Asset Management, a global asset manager with approximately $150 billion of assets under management.

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.

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

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!

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.

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.

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.

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.

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.

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!