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We're selling lifestyle here ...

Casual observers may smile at the names of condominiums that strain to convey a sense of luxury or privilege that bears no relation to their design or setting. But in the big-money world of condo development, where a lifestyle is being sold along with the floor plan, names matter.

The christening of any product — whether it be cologne, cars or condos — is crucial to the construction of a consumer fantasy. It all comes down to branding. A condo fantasy might be New York sophistication, resulting in names like the Beresford or the Brownstone. It might be European worldliness, hence the Brava, Espana and Symphony Place, where buildings are named Vita and Dolce. Or it might be a simple declaration of style: the Élan, the Moda, the Retro.

Catchy names do work; they attract attention and draw in potential buyers, which is why marketing condos usually involves a team of experts brainstorming for hours to find the perfect moniker. "The name is the hardest thing about a project," says Pamela Groberman, a public relations and media consultant who named the Opus Hotel in Yaletown, B.C.

She was also involved in a successful public relations campaign in which a contest was held for condo buyers to name their development, the Élan.

"It's amazing, the time and energy and thought process that goes into it," says Ms. Groberman, who prefers stylish, contemporary names. "

Everybody notices a condo name — especially when it's a dud. "Everybody talks about it," says Ms. Groberman. "It goes through the industry, and everybody says, 'What were they thinking?' "

August 31, 2007 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Caveat Emptor

Caveat emptor, qui ignorae non debuit quod jus alienum emit.
- Let a purchaser, who ought not to be ignorant of the amount and nature of the interest, exercise proper caution.

The common law for the resale of real estate does not imply any promises of quality, habitability or reasonable fitness for a particular purpose. In Ontario that doctrine has been changed for new homes by legislation such as contained in the Ontario New Homes Warranties Plan Act.

Buyer and Seller Issues

The doctrine of caveat emptor basically means that sellers need not be concerned about the state of their resale property. However, there are some exceptions to the caveat emptor principle:

• The most usual exception is when the parties agree by contract (i.e. within the agreement of purchase and sale or other document related to the transaction) that the seller does state, represent or warrant certain matters.
• Another exception is if a court finds that there is a significant difference between that which was bargained for and that which was obtained - an error in substantialibus - where there is a total failure of consideration.
• Sellers can also be liable for misrepresenting the property, which would include lying when specifically asked about something or actively concealing known defects.

While sellers do not generally need to voluntarily disclose most latent defects, the courts have found an obligation on sellers to disclose material latent defects of which they are aware, such as those that make the property unfit for habitation, or dangerous, or that pose a serious health or safety risk. And, of course they can’t lie, if asked, even about a non-material latent defect … that would fall under the above-noted misrepresentation exception to caveat emptor.

Sellers are generally not required to disclose patent defects and therefore buyers take the property “as is” unless the contract provides otherwise. “Absent fraud, mistake or misrepresentation, a purchaser takes existing property as he finds it, whether it be dilapidated, bug-infested or otherwise uninhabitable or deficient in expected amenities, unless he protects himself by contract terms.” – quote from the late Bora Laskin, former Chief Justice of the Supreme Court of Canada

Latent Defect of Quality - Those that are hidden and not readily apparent to a buyer by any reasonable inspection.

Patent Defect of Quality - Those that would be discovered by a buyer by inspection and ordinary vigilance.

August 30, 2007 in Real Estate Practices | Permalink | Comments (0) | TrackBack

The ultimate real-estate deal?

Look south

Canadian buyers seeking their dream home are taking advantage of a strong loonie and sliding U.S. home prices to buy south of the border. U.S. real-estate agents say there's been a noticeable pick-up in Canadian interest in places such as Arizona and California, just as demand from American buyers is drying up. And it's not just more attractive conditions in the U.S. that are luring snowbirds — it's also because Canadian real-estate prices are relentlessly rising.

“We're experiencing a strong influx of Canadian buyers,” said Brian Culhane, one of the founders of ScottsdaleParadise.com, a real-estate firm in Arizona. “Recently it seems like, as our lending market slowed and Canadian prices have really gone up, particularly in Calgary...where people can't get a decent house without paying through the nose, this is a decent opportunity,”

He gets about five “solid” Canadian buyer leads a week and that's well above last year's level. A national spokesman for Re/Max in the U.S. also said he's seeing a pickup in Canadian buyers.

Canadian buyers seeking their dream home are taking advantage of a strong loonie and sliding U.S. home prices to buy south of the border.

Double-digit price declines and rising inventories in some neighbourhoods over the past year don't hurt either. Across the U.S., about 17 per cent of owners say their homes have lost value.

In Canada, meantime, home prices have set records this year. National new house prices are about 8 per cent higher than last year.

“Now is a great time for Canadians to buy their dream vacation properties in the U.S.,” said Sherry Cooper, chief economist at BMO Nesbitt Burns, in a report Friday.

“With our dollar near par and U.S. sellers anxious to deal, top-end properties now seem relatively inexpensive in luxury locations—particularly in comparison to similar quality homes, with less ‘vacation-potential' in Canada.”

U.S. property taxes and condo fees are also more affordable compared to new luxury condo developments in Toronto, Calgary or Vancouver, she added.

Given Canada's aging population and growing group of retirees, housing in locations such as Nantucket, Martha's Vineyard, Kiawah Island, Aspen, Tao, Scottsdale, Las Vegas, Naples, Miami and Palm Beach “has never been cheaper for Canadians (in real exchange-adjusted terms) and the selection has never been better in both new and existing properties.”

August 30, 2007 in World View [of real estate] | Permalink | Comments (4) | TrackBack

The Toronto Board says ...

Torontonians deserve a more thoughtful and fair approach to the City’s financial challenges.

In response to recent City of Toronto announcements regarding its fiscal situation, Toronto’s Realtors are calling on Mayor Miller, City Councillors and provincial politicians to consider the options preferred by Torontonians, instead of just new taxation or cuts to core services.

Realtors have been watching the actions of City and Provincial politicians since Toronto City Council decided to defer consideration of a second land transfer tax, which would mean a 100 per cent increase, or over $4,000 in extra costs for the average Toronto home buyer, if approved.

“The public has been clear that a second land transfer tax is simply not a fair way to address the City’s budget shortfall. It discriminates against homebuyers by forcing them to shoulder a disproportionate and unfair burden,” said Donald Bentley, President of the Toronto Real Estate Board (TREB). “The second land transfer tax should be taken off the table immediately and the public should be given thoughtful choices instead.”

TREB points out that a second land transfer tax will impact average people. According to the Canada Mortgage and Housing Corporation, in Toronto’s condominium market, where most investment activity occurs, approximately 80 per cent of units are owned by people who live in them. Investment activity is even lower when all residences are considered.

“Realtors know first hand that the Toronto real estate market is dominated by people buying homes to live in them, not by investors or speculators,” added Bentley. “A second land transfer tax will be felt the most by real, hard-working, people with the dream of home ownership. In today’s market, it is not uncommon for these people to move every five years or so; they will feel the sting of the second land transfer tax many times”.

Realtors believe that a fair approach to addressing Toronto’s fiscal situation should include immediate and adequate provincial action, prioritizing the City’s core services, and making sure services are delivered efficiently.

“The choice isn’t simply between new taxes or cuts to core services. The public knows better and they deserve better. There are other options. The City has to get its house in order and all provincial politicians have to step up to the plate with firm, adequate and immediate commitments,” said Bentley. “The recent announcements from the Provincial Party leaders regarding municipal finances show that public opinion is having an impact, but the public is expecting and demanding more.”

While TREB believes that provincial action is a key part of the solution, Realtors are also calling for an impartial third-party review of the City’s budget so that the public can have an accurate understanding of the City’s fiscal situation.

“The public has the right to demand openness so that they can truly understand what makes up the City’s shortfall. The City shouldn’t be hesitant to ask for a second opinion on where savings can be found and other options,” added Bentley.

Realtors are also questioning the City’s current approach to cost containment, noting that the City’s Deputy City Manager and Chief Financial Officer is currently in the process of determining what the City’s core services are.

“Frankly, it’s shocking that the City would choose to pursue new taxes before identifying discretionary services. The public know their priorities and they expect the City to focus their existing tax dollars on those core services, while finding savings in discretionary areas. The City’s recent cost containment efforts seem to have ignored various options that may be preferred by the public”, said Bentley.

August 29, 2007 in Toronto Real Estate Taxes | Permalink | Comments (1) | TrackBack

Toronto Commercial Real Estate

Toronto Among Top Five Most Desirable Locations

Altus-Insite Investment Trends Survey respondents continue to rank Tier One Regional Malls as the best property type for investment purposes.

This ranking has not changed since the second quarter of 2006. Meanwhile, Edmonton was ranked as the most desired location in Canada.

Calgary was second, and Vancouver rounded out the top three spots. Toronto was ranked as the 4th most desirable location to purchase an investment property.

See Full Report [in PDF format].

August 28, 2007 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

Insurance Discount Tip

Most insurance companies offer discounts for homes with security systems. They understand that a home with a security system is less likely to experience the type of emergencies that result in insurance claims. If your insurer does not offer such discount, it may not hurt to shop around, as it is standard practice for many.

Here is one of the most innovative home protection services »

August 27, 2007 in Home Maintenance Matters | Permalink | Comments (0) | TrackBack

Condo Living in Downtown Toronto

Downtown Toronto offers some of the best in condo living.

The Toronto core boasts a growing abundance of gorgeous city condominiums that offer such features as fourteen foot ceilings and sunny south east exposures, some so open and spacious you feel like you are living in a house. Well-designed condos with contemporary comfort are providing ready access to a fantastic downtown lifestyle in the residential quadrants of the Toronto core.

Owning a condominium provides all of the benefits of owning a home without the responsibility of maintenance and repair such as snow shoveling, grass cutting and gardening. In many condominium complexes you will enjoy the added benefits of 24-hour security, fitness facilities, and recreation & entertainment centres.

Downtown Toronto features a large selection of residential options that offer accessibility to the many cultural, historic, educational, leisure, retail and employment opportunities that Toronto holds. The Bloor Yorkville area alone offers 700 designer boutiques, restaurants, hotels, and world-class galleries. Other well known districts offering compatible fare are The Annex, Cabbagetown, and Chinatown, to name a few.

Residing in the Kensington Market area and the closely located Little Italy District brings you within easy reach of some of the freshest produce and best selection of cheese vendors in the City of Toronto.

Forest Hill offers homes of distinction that reflect individuality in architecture, landscaping and personalized residential uniqueness. Within the vastly growing city of Toronto and the greater Toronto area, Forest Hill maintains its unique existence as a quiet, charming, cozy village with a flair for offering an extensive and interesting assortment of restaurants, cafes, and bakeries.

Toronto’s historic west neighbourhood of High Park proudly presents homes located on tree lined residential streets. Like Forest Hill, quiet, intimate areas can be found with some homes being located on streets that reflect a mews style appearance. High Park is known for its 399 acres of green space and sport facilities for swimming, tennis, soccer, cycling and trails.

Families are moving back from suburbia and relocating in downtown Toronto. Spending years commuting on the freeway and stuck in traffic rather than time at home, parents are looking for opportunities to spend more time at home with family in their own community, downtown Toronto.

August 26, 2007 in Location, location, location | Permalink | Comments (2) | TrackBack

Putting jobs close to home

Forget long commute to downtown Toronto. The 'new urbanism' will allow suburban residents to walk or bike to work and retail stores in a 'compact lifestyle'.

A new live-work development planned for Whitby is part of an evolution in urban planning that will see more of us walking to work, riding our bikes and parking the car, say architects, planners and politicians.

"My sense is that we're at the beginning of what is going to be a profound transition to a more healthy, balanced and sustainable way of building our communities," prominent architect and urban designer Ken Greenberg said yesterday.

A planned development in Whitby that grabbed attention this week may provide homes for 14,000 and jobs for 10,000 when it's completed in a decade. Residents will be able to live and work in the same community rather than spending hours commuting to jobs in downtown Toronto.

It's the latest in a string of such developments planned or under construction in the Greater Toronto Area.

"It's the new urbanism. It's all about sustainable communities," said Dave Ryan, mayor of Pickering, where the largest of such projects is now in the works.

Construction of the Seaton community in North Pickering is to begin in about two years. When it's complete, about 20 years from now, it will be home to 70,000 people and 35,000 jobs.

The high-density developments will include more condominiums, more mixed-use buildings and more "green" components.

"It's about a more compact lifestyle where people are taking up less space in their living environment. The complete community provides jobs as well as places to live. It brings the amenities that contribute to the quality of life closer so that people don't have to get in their cars to go shopping and go to schools," Ryan said.

The province is pushing for more developments like this through its Places to Grow Act. Passed two years ago, it requires that at least 40 per cent of any new development in the Greater Golden Horseshoe be in areas that are already built up.

August 25, 2007 in Location, location, location | Permalink | Comments (0) | TrackBack

Ecoplace Community for Whitby

It's exactly what Whitby's been looking for – an opportunity for living and working in one place. When the planned Ecoplace Community by the Lake is completed, it's expected to provide homes for 14,000 and jobs for 10,000. That's huge for Whitby, says Mayor Pat Perkins.

As Durham Region's fastest-growing municipality, Whitby has homes but not jobs for new residents, Perkins explains. "People are spending two to three hours on the highway every day" to get to work in Toronto. "The highlight of this development is the employment opportunities for residents."

Preliminary plans for the first phase of the development include a 20-storey office tower, 700 units in three condominium highrises and retail stores.

"It will be the place to be east of Toronto." says developer Saverio Montemarano.

See article in the Toronro Star »

August 24, 2007 in Toronto Area Communities | Permalink | Comments (0) | TrackBack

Toronto ranks 5th most livable city

Vancouver takes top ranking for fifth year in a row in Economist magazine survey

Vancouver has been ranked the best place to live in the world for the fifth year in a row in a survey by the Economist magazine, while Toronto took fifth place out of 132 cities. The two Canadian cities rank among the top five because they have low crime rates, little threat from instability or terrorism, and a highly developed transport and communications infrastructure, says the survey by the Economist Intelligence Unit (EIU).

Vancouver scored a livability index of 1.3 per cent, with zero indicating exceptional quality of living and 100 indicating life there is intolerable or severely restricted.

A good transportation system helped Vancouver top the Economist's list of the world's most livable cities, again.

Australia also fared well in the survey, securing four spots among the top 10 cities.

Algiers came in at the bottom of the ranking. Nine cities, including Algiers, present the worst-case scenario in which most aspects of living quality are severely restricted, according to the survey.

The EIU's livability ranking is part of the magazine's Worldwide Cost of Living Survey.

The survey considered 40 individual factors in categories such as stability, health care, culture, environment, education and infrastructure.

Top 10 cities Livability index

1. 1. Vancouver - 1.3
2. 2. Melbourne - 1.8
3. 3. Vienna - 2.3
4. 4. Perth - 2.5
5. 5. Toronto - 3.0
6. 6. Adelaide - 3.0
7. 7. Sydney - 3.2
8. 8. Copenhagen - 3.7
9. 9. Geneva - 3.9
10. 10. Zurich - 3.9

(0 indicates exceptional quality of living and 100, an intolerable one)

Source: eiu.com

August 24, 2007 in Location, location, location | Permalink | Comments (2) | TrackBack

The Home Renovation Decision

Anyone who has lived through months of dusty floors, washed dinner dishes in the bathtub, and stayed with friends when the water in the house is off for two days knows major remodeling is an extraordinary pain. But letting go of what you have and trading up to a new home is not an easy decision.

Ask yourself what factors are most important to you:

• Do you love your neighborhood?
• Are you near services and schools?
• What is your commute time?
• Is there room to renovate - considering lot size, etc.?
• Have you built up enough equity in your current home to justify spending on a remodel?

You've heard the old adage "location, location, location." If you already live in a desirable neighborhood, but the house vexes you because it has one bathroom, or a kitchen that was last updated in 1960, remodeling may be the answer.

Timing and the Market

Does it make sense to invest in a major renovation in your market? A renovation that will pay off in Toronto, may not pay off in Beaverton. If you spend $85,000 on a kitchen renovation, you may recoup more than what you spent in Oakville, but not in Keswick where housing prices are a much lower percentage of the cost of the remodel.

Renovation Decision Points

Do your research:

Get an appraisal - find out what your home is currently worth

Check comparables (recently sold homes) in your area to see what the baseline for selling is

Estimate your remodeling project cost

Determine how you will pay for the renovation

Appraise House and Neighborhood

Paying for a current appraisal is money well spent in the remodeling process. If your home is already valued high relative to the market, you will not recoup the cost of an expensive remodel. Research comparables using My Estimator to value your home among the others in the neighborhood - remodeled or not - to get a better picture of your possible financial gain. It is easy to spend over $10,000 on a bathroom upgrade without architectural changes, but will it pay off?

Remodeling Returns

Check out the RENOVA home improvement valuation guide for an idea of typical remodeling project costs and possible payoffs. Some projects will return 75 percent of your costs while others may return as much as 103 percent, but some financial experts caution that these numbers are only valid if you turn around and sell your home within a year of completing the remodel. The longer you wait to sell, the more the renovation value decreases.

Paying for It

Do you have the equity in your home to open a home equity line of credit, or apply for a home equity loan to pay for the remodel? If you have less than 20 percent equity in your current home, wait to remodel.

If you do have the equity, what will the renovation entail? If it is a large project - such as big structural changes and losing the use of your kitchen or your one bathroom, you may want to consider moving out during the hammering and drilling.

Trading Up and Out

Depending on your area, trading up to a new house with all the features you are looking for is often cheaper than remodeling. The trading up trade-offs are that you may need to move a distance from your current home and incur the time and costs of buying and selling again.

August 23, 2007 in Home Maintenance Matters | Permalink | Comments (0) | TrackBack

Moving back home

When Jeff Popham moved back to Victoria from Toronto, he -- like a lot of adult children -- ended up returning to his parent's house. Fortunately, they had an extra lot next door. For Popham's young family, high real-estate prices proved daunting in their search for a home. So, his parents offered their side yard as a site to build a new house. Jeff's mother, Joan, can now look out her sunroom window to see her two granddaughters playing in their front yard.

See article »

August 22, 2007 in What's next (in real estate) | Permalink | Comments (0) | TrackBack

MLS sales forecast revised upward

Fueled by record activity levels during the first half of the year, national MLS® home sales activity is expected to reach record levels again in 2007, according to a new residential forecast prepared by The Canadian Real Estate Association.

National home sales are forecast to rise by 8.1 per cent to 523,100 units in 2007, and will set new annual records in most provinces. Activity is forecast to edge slightly lower in 2008, but will reach the second highest annual level on record in almost all provinces. Prices are forecast to set new records in every province this year and in 2008, but price increases will be smaller next year.

Resale housing markets will continue to become more balanced in British Columbia and Alberta. Even so, markets will remain tightest in the Western provinces where annual price increases will be greatest. In other provinces, the resale housing market is forecast to be tighter in 2007 than it was last year, but it will become more balanced as housing prices increase and higher interest rates further impact affordability.

The MLS® residential average price is forecast to set new records over the next two years in all provinces. Price increases are forecast to become smaller as the resale housing market becomes more balanced in 2008.

Resale housing activity is projected to ease gradually in all provinces. New listings are forecast to rise further in all provinces except Alberta, where they are projected to retreat after spiking in the second quarter.

“Resale housing activity was a juggernaut in the second quarter of 2007,” said CREA Chief Economist Gregory Klump. “Record breaking sales activity in the first and second quarters forced The Canadian Real Estate Association to revise its forecast upward.”

“Home buying sentiment remains upbeat in all regions and mortgage financing is still within reach for many potential home buyers,” Klump said. “The resale housing market will become more balanced as rising prices and higher mortgage interest rates gradually impact affordability. Strong employment numbers will keep sales activity strong, even as prices and interest rates continue to rise.”

“Consumers continue to have strong confidence in Canada’s resale housing market, and activity is on track to set a new annual record in 2007,” said Ann Bosley, President of The Canadian Real Estate Association. Bosley notes the Canadian market has shrugged off the subprime problems that have been affecting the housing market in the United States, and a number of investment funds.

According to CREA’s forecast, the resale housing market will become more balanced next year, but negotiations will continue favoring the seller in most provinces. “For local market expertise and sound advice, consumers should consult their real estate professional,” added Bosley.

August 20, 2007 in Canadian Market Forecast | Permalink | Comments (4) | TrackBack

Canadian vs. American Real Estate

The market across Canada is hot-hot-hot

Canadians seem to be in the throes of a home-buying frenzy. To wit: The number of home-sale transactions in Canada is projected to rise by 8% this year (as opposed to a 5.7% decline in the U.S. seen by the National Association of Realtors). And the average price, nationwide, should pop up by 9.5% to about $285,000. The American Realtors association doesn't calculate a U.S. average sale price, but it predicts that the 2007 median -- the point at which 50% of homes sold for less and 50% for more -- will decline 1.4% this year, to $218,800.

According to data from a recent report from Royal LePage Real Estate Services, a leading real estate franchiser based in Toronto. Independent data from the Canadian government second those findings.

The most intense activity is in cities in western Canada, said Phil Soper, chief executive of Royal LePage, who described the market in the rest of the country as healthy. Still, he said, he is surprised at the buoyancy.

"In 2006, we saw a slight decrease in the number of homes trading hands, just down 1%, and the consensus forecast was that 2007 would see a decline too -- not in prices but in the number of homes trading hands. What occurred instead was a real turnaround in activity," Soper said.

What's fueling the pace, he said, is an unemployment level at a 20-year low and a boom in the Canadian dollar, which is nearly equal to the U.S. dollar.

Soper said the Canadian market has a couple of factors that would mitigate a "big, big correction" like the market changes going on in the U.S. Canada's market hasn't seen much of the delirious speculator activity that propelled the American housing run-up for about five years. And then there's the sub-prime mortgage factor.

The "fiasco" can't happen, he Soper, "because there is no sub-prime lending market here."

August 19, 2007 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

Summer Market Remains Hot

August Prepares to Roar into Fall Market

Resale home transactions reached unprecedented heights in the first half of August, up 17 per cent from the same period in 2006, Toronto Real Estate Board President Donald Bentley announced today. So far this month 3,838 properties have sold with an average price of $355,829.

"The market has shown tremendous strength in recent months," said Mr. Bentley. "Given that August sales have been brisk thus far and that the past four consecutive months have all set records, we are looking forward to a robust fall market."

The rate at which transactions are occurring has increased over 2006 as well. On average, properties are currently on the market 32 days before selling as compared to 38 Days during the first half of last August.

Sales were particularly swift in the neighborhood of West Agincourt (E05) where there was an overall increase of 71 per cent in sales compared to mid-August 2006 as detached home transactions doubled.

In Rexdale, the W10 district showed a 54 per cent increase in overall sales compared to mid-August a year ago due to large increases in both condominium apartment and detached house sales.

In the Downtown Core (C01), 27 per cent more transactions took place overall compared to the same period last year as a result of a 34 per cent increase in condominium apartment sales in August 2007.

Detached and condominium apartment sales in South Richmond Hill (N03) fueled an overall increased of 41 per cent as compared to the same timeframe a year ago.

Mr. Bentley offered one word of caution with respect to the market outlook, noting that the potential for a second land transfer tax in Toronto could be a wild card.

"The health of the current market is good news for Toronto’s economy. We hope that the City of Toronto doesn't jeopardize this market by imposing a second land transfer tax on home buyers," said Mr. Bentley.

August 17, 2007 in Toronto Real Estate Update | Permalink | Comments (2) | TrackBack

House-price escalator pauses

Average Toronto house price down nearly $16,000 from June

Led downward by a $15,951 drop in Toronto, the average price of a house sold through multiple listing services in 24 Canadian markets fell 0.8 per cent in July from June's record level. But that average price — $332,442 — was still up 13.1% from the July 2006 level, the biggest year-over-year rise since April 2004, the Canadian Real Estate Association said.

Its average July price of $581,108 was up $16,406 or 2.9 per cent from June and was 12.2 per cent higher than in July 2006. Toronto's July average, $366,012, was down $15,951 or 4.1 per cent from June but up seven per cent from July 2006.

Toronto Real Estate Board president Donald Bentley said the month-to-month drop was no shock because high-end properties don't tend to sell well in July and August. "People are at the cottage and so on," he said.

Brian Naphtali, president of the Real Estate Board of Greater Vancouver, said high-end sales were one of the forces behind his city's surge. There have been 45 sales above $5 million in the Vancouver area so far this year, compared with 23 in all of 2006.

On a year-to-year basis, the biggest percentage price jumps were in Saskatoon (where the July average price was $245,152, up 53.7 per cent), Edmonton ($353,919, up 38 per cent) and Regina ($176,537, up 28.7 per cent).

Prices were down in St. Catharines, Ont., and nearly unchanged in Thunder Bay and Windsor-Essex.

In a commentary on CREA's figures on Wednesday, BMO Capital Markets economist Douglas Porter focused on the fact that 32,420 homes changed hands in July. "Sales rose 0.8 per cent from already lofty June levels, and were up a towering 19.5 per cent from year-ago levels," he said.

He called this "another clear sign that the underlying Canadian economy had plenty of momentum before the credit squalls broke."

Source: Canadian Real Estate Association

August 17, 2007 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

New housing market expected to fall

Less available land and a price gap with resale market is causing new home starts to drop, report finds

Ontario's new construction market will continue its decline this year and next in the face of higher home prices and increased mortgage costs, says a report by the Canada Mortgage and Housing Corp. The agency predicted housing starts for Ontario will fall to 66,950 in 2007 from 73,417 in 2006. They will drop further to 64,500 in 2008.

"The new construction market share of total home purchases has been dropping over the last several years," said Ted Tsiakopoulos, an economist for CMHC.

"One of the reasons is we are running out of land to build on, and if you look at the average price of a new single-detached home, it is clearly outstripping the price of a resale detached home."

He said the price gap is pushing buyers to the resale market.

Meanwhile, national housing starts are expected to fall from 227,395 in 2006 to 207,200 in 2008.

In Toronto, it was the same story as housing starts are projected to fall to 34,500 in 2007 from 37,080 in 2006. In 2008, this number is expected to decline to 33,500.

But analysts say that, despite these projections, Ontario's housing market remains on solid ground due to a powerful home resale sector. In fact, CMHC says the province's resale sector is expected to reach record territory in the coming months. Resale volumes will hit 209,500 this year and 202,000 in 2008.

"Stable job market conditions, slight improvement in affordability, combined with high level of consumer confidence are really translating into a healthy pace of housing demand in Ontario," Tsiakopoulos said.

In Toronto, resale volumes are expected to grow to 90,000 in 2007 and 87,000 in 2008. They were 84,842 in 2006.

"Prices in Toronto will run closer to the rate of inflation whereas, in hotter markets such as Hamilton, Sudbury and London, we will see prices growing well above the rate of inflation," Tsiakopoulos said.

It's not inconsistent that while housing starts are declining that the resale market can remain strong, said Doug Porter, an analyst with BMO Capital Markets.

"The big picture overall is the housing market is holding up quite well in Ontario given that the province is seeing some of the slowest growth in the country," Porter said.

And in spite of the falling house starts, the Conference Board of Canada noted in a separate report that builders can expect profits to jump to $4.5 billion in 2007 due to increased prices and demand.

Toronto's condo market continues to prosper, Tsiakopoulos said, because of demand by both empty nesters and first-time buyers.

August 16, 2007 in Canadian Market Forecast | Permalink | Comments (3) | TrackBack

Florida realty market goes south

Great deals abound in southwest Florida due to credit crunch

Phone books that were delivered but never opened rot away next to empty driveways and overgrown lawns, telltale signs that once-booming southwest Florida is now the centre of the U.S. housing storm. Until two years ago, middle-class retirees vied with property speculators for houses and apartments in Cape Coral, a town near Fort Myers on Florida's sun-drenched Gulf Coast. Now almost every other house on some of its streets has a for-sale sign outside.

With a bloated inventory of unsold homes and a growing number of homeowners forced by mortgage delinquencies to sell – thanks to the subprime crisis and ensuing credit crunch – southwest Florida's once-warm clime for property has turned stone-cold.

Linda Setterlund, 61, owns a pristine three-bedroom, two-bath, Cape Coral house that has been on the market for about a year. At a reduced asking price of $183,900 (U.S.), she said, the house had been priced to match what she and her husband owed on it, after moving in three years ago with a 30-year fixed mortgage.

Setterlund said she and her husband had decided to leave the area to join family in Tennessee, but their decision was also prompted by growing real estate taxes and skyrocketing homeowner insurance rates after an active 2005 hurricane season.

"They're saying that we're heading for a recession but I think we're past that," said Setterlund, referring to the housing glut and its effect across much of south Florida. "I think we're headed more into a depression."

Setterlund and other local residents, many of them retirees from the U.S. Midwest, complained of low wages in the Fort Myers area, where leading employers include the Publix supermarket chain and the school board.

There was a nearly 27-month supply of existing single-family homes on the Fort Myers market last month compared with a three-month supply at the height of the local boom in housing in August 2005, according to Denny Grimes, a top real estate agent in Fort Myers.

At the same time, more than 40 per cent of single-family homes were listed at prices below $250,000 versus just 18 per cent at the market peak.

Making things worse, Grimes said, builders were still churning out new housing units at big discounts in and around Fort Myers, where many investors bought houses during the boom market without ever considering the long-term cost of holding properties.

Fort Myers "is by far the worst housing market that we're in," said Larry Sorsby, executive vice-president and chief financial officer of home builder Hovnanian Enterprises Inc.

Ever the realtor, Grimes said now may be the time for buyers to seek opportunity in adversity.

While business is slow for Grimes and other realtors, it has been booming for Jonas Elliott, a so-called "short sell" specialist at Southwest Florida Home Buyer Services in Fort Myers.

Elliott buys properties, from banks or other lenders, that are at a risk of foreclosure, usually at a large discount, and then "flips" them at a profit. "In this particular county I have about five years of good business," he said. "We have a ton of inventory, a ton of new properties coming into inventory."

He said losses on local properties have not been limited to medium-income retirees and "snowbirds" escaping harsh northern winters. One of Elliott's current customers is about to swallow a $1.5 million loss on four properties he could no longer afford to finance.

August 15, 2007 in World View [of real estate] | Permalink | Comments (0) | TrackBack

Home Buyers' Fearbusters

No worries. Though buying a house can be stressful, fears can be calmed with a little homework and information.

Fear: Help! Everyone has advice for me. I'm going to be overwhelmed by all the things I need to know — I'll never get a house!
Fearbuster: Take a deep breath. Remember that other people have been through this, and they survived. And purchased a house. There are lots of people out there to help, from family members who have done it before, to professional real estate resources, to RealEstatePlus. Information is your friend — the more homework you, the easier the whole process will be.

Fear: The neighborhood’s cool, the homes are well-maintained, and I’ve found several I like. But the housing market means prices are just beyond my budget! Will I ever find a place to call my own?
Fearbuster: Broaden your search. If housing prices in that hip zip are too hot to handle, consider looking in nearby neighborhoods. They’re often overlooked, underpriced, and poised to benefit from the reflective glow.

Fear: The perfect home is always sold the week before I started looking!
Fearbuster: Sit down with your real estate agent and review your description of what you’re looking for in light of the kinds of homes you’ve seen so far. Were there homes you initially ruled out that might be worth a second look? For example, could you do without a separate family room if that brought the price of a home within your range? And keep looking. The perfect home may be just around the corner.

Fear: I'm looking for an agent, and I want to find one who will help me get the best deal. But there are so many agents after my business that I'm afraid I'll choose the wrong one, and the seller will have the upper hand.
Fearbuster: You want to do some homework when picking an agent. It’s especially important to have a list of questions to ask. Don't be shy about asking questions and you'll be fine. Inspect what you expect. Many agents will tout that they have great internet marketing....check to see they do. An agent web site is simply not enough.

Fear: I'll choose an agent who won't pay any attention to me.
Fearbuster: Interview at least three agents before making your choice. And don't hesitate to ask your friends for referrals — they've been through it. Many agents will talk a good talk. Check and see what they say is true. Look at one of their listings on mls.ca. Does the listing have multiple photos and an accurate description? If not, move on. If they offer an excuse....move on. Do you want excuses from a professional?

Fear: What if the seller turns us down flat?
Fearbuster: Barring an insane seller’s market, if you and your agent have presented a reasonable offer, backed by a strong market analysis , the seller should be willing at least to make a counter offer. If not, there’s nothing you can do except resume shopping — and be glad you won’t be dealing with someone who likely would’ve given you weeks of misery and then probably quashed the deal anyway. The good news is: Your new home must actually still be out there.

Fear: I want the house, but I'll have to give up too much to get it!
Fearbuster: Figure out what is really important to you about the house; that becomes your baseline negotiating point. Concentrate on that, and you will find you can probably live without some of the other conditions.

Fear: I hate, I mean hate, confrontation. I'm worried that the seller will hate me if I negotiate.
Fearbuster: The seller probably won't accept your first offer, but it doesn't mean they don't like you! Think of it as a conversation, rather than an argument. Identify what kind of market you are in, equip yourself with a few negotiation techniques, and then build in as many (or as few) conditions as you think will be accepted.

Fear: Yikes, now I have a $250,000 mortgage. What if I lose my job, they foreclose on my house, and my life is ruined!
Fearbuster: Putting money aside for a rainy day is easier said than done — particularly when you have just made the biggest investment of your life. Begin to squirrel away emergency funds and even open a line of credit, if you qualify, so you’ll have funds to get you through a rough patch.

Fear: What happens if the seller accepts my offer but my financing falls through or I lose my job?
Fearbuster: The contract should contain contingency clauses designed to make it possible for you to pull out of the deal and get your deposit refunded. A standard condition is that your mortgage loan must be approved (committed to by the lender). If you lose your job after you get a committment you will still get the financing.

Fear: I may be buying into a declining market, in which case my hard earned down payment could be quickly wiped out.
Fearbuster: Do your homework, find a real estate agent that knows the area you are looking in and has been in the business for a few years. A good place to find an agent is usually through friends, family, or co-workers. Good agents will usually know how the market trends have been in their area, and have attended many educational courses giving them a strong outlook on the real estate market. In addition, a good agent should be able to answer your questions or concerns. If they are unable to answer your questions, keep looking until you find an agent you are comfortable with.

August 15, 2007 in Buying Toronto Real Estate | Permalink | Comments (3) | TrackBack

Let's make houses homes

Realtors still like to call them homes, because it sounds warmer, more friendly, and that plays a huge role in such an emotional purchase, but sometime in the last few decades, the home became the house. It has never been more apparent than in today's red-hot, yet volatile, real estate market, where emotions give way to dollars and investment sense.

In almost every community across North America, from Manhattan to Beverly Hills to Calgary to Toronto, real estate is more often talked about as an investment than it is a place to live.

Our parents have told us for generations that real estate is a good investment because it's the only thing they're not making any more of.

But even then, a home was a place to raise a family. Today, are they more often viewed as investments where people store an ever-changing, ever-growing collection of consumer items to impress visitors or simply reassure themselves of their own success?

Why, when the average size of the family has decreased so dramatically over the last three generations, has the average size of the family home grown exponentially?

Welcome to the new millennium, where the square footage of a kitchen has doubled or tripled at a time when eating out has never been more popular and eating in a vehicle is a national pastime.

Where kitchens contain all manner of gadgets from cappuccino makers to juice squeezers to bread machines to make "cooking" easier in an era when prepared foods have proliferated in the grocery stores.

Where bathrooms have become water palaces. Where the garage is bigger than ever and full of more cars than drivers.

Where children's bedrooms are decked out with the latest technology, from computers, to video games to televisions.

Where the dining room table doesn't get a lot of use.

Where the bookcases are bare.

With markets as jittery as they have been lately, and sales of existing homes in the U.S. in a downward spiral, and too many high-risk mortgages in jeopardy, it could once again, for better and for worse, make the house a home.

August 14, 2007 in Real Estate Investments | Permalink | Comments (2) | TrackBack

The condo house?

It's a brand-new concept: labour-free home ownership

Down a tree-lined, brick-cobbled lane among the old manors of Toronto's posh Rosedale neighbourhood, the next step in the evolution of real estate is taking shape. Inside the sleek mansion at 1 May St., a woman is raising her voice over the crack squad of landscapers deployed across every square foot of the small front yard to demonstrate how the control panel of the house's "robot brain" commands a nervous system of heated floors and walkways, lighting, doors and sound systems.

The house can not only run itself, but manage its own affairs. The owner need never shop, clean, pay a bill or even answer the door. Everything has been taken care of. One of Toronto's most opulent homes may also be the answer to a commonplace question: should I buy a house or a condo?

See article on Macleans.ca

August 13, 2007 in What's next (in real estate) | Permalink | Comments (0) | TrackBack

Slump stalls Royal LePage plan

Move into the U.S. market is put on hold

The slump in the American housing market has stalled efforts by Royal LePage Franchise Services Fund to expand to the United States, according to the company's chief executive. Actually striking a deal has proved elusive, as U.S. real estate companies continue to price themselves based on a booming housing market that no longer exists.

"To a certain degree, we got slowed down by the mess that the U.S. market found itself quite unexpectedly having to deal with. We're focused on making the right deal not just a deal," said Royal LePage President, Philip Soper. "Essentially companies [in the U.S.] have valuations in their head based on 2004 earnings and if you look at 2007 earnings, they are a small fraction of what they were."

The U.S. housing slowdown appears to be getting worse. The National Association of Realtors said yesterday it expects existing home sales to fall 6.8% from a year ago to 6.04 million units. It had previously forecast only a 5.6% decline.

Despite the slowdown, Mr. Soper said that the United States remains in LePage's long-term plans for expansion.

See Financial Post article »

August 12, 2007 in Agency Matters | Permalink | Comments (0) | TrackBack

Dear seller: Please pick us!

In a competitive market, some buyers are trying to seal the deal with a sentimental plea

After considering more than five different offers on her downtown Toronto condo in June, Stacey Mitsopulos narrowed the field to two potential buyers. After some deliberation, and to the shock of her real-estate agent, she opted for the one bidding a lower amount. "I wanted it to go to a woman," said the entertainment lawyer.

"I thought, she's single, she's successful. I felt like I could relate to her more even though I had never met her."

In Toronto's intensely competitive housing market, buyers are increasingly making emotional appeals to sellers like Ms. Mitsopulos, describing their lives, decor tastes and even their dreams in an attempt to come off as kindred spirits and sway the financial transaction in their favour.

Some write letters, submitted with their official offer, in which they detail their plans to start a family in the home or compliment the owner's taste.

When a house in the Beach neighbourhood of Toronto recently sold for $600,000 over the asking price, one bidder even sent family photographs to the seller in an attempt to pull on the heartstrings.

Real-estate agents, too, have got in on the act, managing their clients' look and attitude just as they would stage homes with expensive art and fresh flowers.

"You try and humanize the offer, put a face to it," said Toronto agent Marny Hersenhoren. "It's usually a bottom-line business, but people like to know who's moving into their home."

To help her prospective buyers land a deal, she has often included family snapshots with offers and advises her clients to write personal letters to sellers, explaining why they love the house and how they envision their lives within it.

"Nothing too saccharine," she said. "They usually say, 'We love your home, we absolutely know that this is it and want you to know it will be taken care of.' "

She has also included the home's street number in the price her client is offering.

So, for a bid of $500,000 on the house at number 49, she advises a minor tweak to make the offer $500,049 - a price that will catch the seller's attention.

And while it may seem unlikely that homeowners would be influenced by such tactics, Ms. Hersenhoren has seen them work first hand.

One of her clients bid on a home that had been put on the market by owners who wanted to know whether the buyer would look after the garden, what paint colours they planned to use, and whether they would preserve the interior's original wood features.

Although another couple offered more money, Ms. Hersenhoren's client eventually won the house because she answered the questions to the sellers' liking.

"They had lived there for a long time, they had raised their kid there and were really attached to it," she said. "They saw it as a better match."

William Strange, a professor of real estate and urban economics at the University of Toronto's Rotman School of Management, said buyers are simply engaging in the psychological manipulations long practised by those listing their homes.

"I suggested to a friend that they borrow another friend's kid when they were looking at houses," he said. "I know some people in Vancouver who were able to get a home at below market price because they had a new baby and the owner thought they were a nice family."

But there are problems that go along with this kind of behaviour, he said. In the United States, research has found evidence that homeowners will often sell to families who resemble them, not just in taste or family values, but in race.

"So this perception thing's got an ugly side to it," Prof. Strange said.

He would refuse to read letters submitted by prospective buyers if he was selling his home, he said.

"I just wouldn't want to get it. It's just not germane. I'd like to meet anyone willing to give up $5,000 for the sake of a nice family."

Ms. Mitsopulos insists she was not taken for a sucker. Among the information she gleaned about her female buyer was that the woman had already bid on, and lost, three other condos.

"I knew I could get more money out of her," said Ms. Mitsopulos, who made the female bidder raise her price by $6,000. "I didn't give it away."

But what if the other couple had offered her an additional $10,000 - would she still have leaned toward her kindred real-estate spirit?

"Oh, I would have sold it to them in a second," she laughed. "It really was all about the money."

Source: From Friday's Globe and Mail

August 12, 2007 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

How to decode real estate ads

The most over-used expressions and what they really mean

Reading the real estate descriptions can be like reading in a foreign language, or worse, overzealous words in real estate advertising can make even a snake pit look attractive. Don't panic. We decode some of the language and abbreviations to put you well on the way to buying the home of your dreams:

The most misleading words in real estate (and what they really mean)

1. Cozy (too small)

2. Charming (too old)

3. Original Condition (appliances are 50 years old)

4. Needs TLC (it's a dump)

5. Conveniently located (noisy)

6. Desirable neighborhood (this little house has been way over-priced because the neighborhood has some snob appeal)

7. Efficient kitchen (too small to fit two adults)

8. One car garage (you can drive your Chevy in but can't get out)

9. Peek at the park/river/mountains (if you angle your mirror just so … )

10. Useable land (no trees)

11. Country Living (too far from anywhere to drive to work)

12. Must see inside (outside is ugly)

13. Unique (hard to sell)

14. Just available (previous owner just died on the premises, hope you don't mind).

Here's what's important if you want your house to sell: Compare your home to similar sized in your neighborhood. Compare them online and in your local newspaper. Also, be sure to know the median price in your neighborhood and price in the 'market zone'.

August 11, 2007 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack

Stinson's dreams are tumbling down

Harried Times

Originally planned to reach 81 storeys on a site on Toronto's Temperance Street, the Sapphire Tower was to have two connected cylinders covered with blue glass, capped with a globe that would minimize building sway in the wind. The 1,000-unit project was to feature studio and one-bedroom units in the lower levels, two-bedroom units in the higher levels and some full-floor suites.

The project was later redesigned and reduced to 62 storeys. Amenities were to include a private hotel, spa, 24-hour grocery store, dry cleaning service, daycare and valet parking.

In December 2006, the Ontario Securities Commission alleged Stinson broke securities laws by selling units without issuing a prospectus, and Stinson agreed to pay a fine.

The construction start date had been set for 2005, but the project has never broken ground.

Harry Stinson's Sapphire Tower Development Corp. entered bankruptcy protection on July 20. Beleaguered developer has been granted protection for his shimmering, elusive Sapphire condo project

Not so long ago, Harry Stinson's dreamscape floated high above his condo-hotel at 1 King West, soaring to 81 storeys of shimmering blue glass that would arise from a parking lot at 66 Temperance Street.

As Stinson imagined the Sapphire Tower, there would be a sky-lit infinity pool, glass-walled shuttle elevators, circular apartments with two-sided "Citizen Kane" fireplaces, and a "Sky Spa," which even on the cloudiest days would never be gloomy.

There are no blue skies for Harry Stinson these days »

August 10, 2007 in Real Estate Personalities | Permalink | Comments (1) | TrackBack

Toronto Commercial Real Estate

July Up over 2006

With 882,252 square feet of space changing hands in July, the month was up 43 per cent over the 614,952 square feet transacted in July of 2006, Commercial Council Vice Chairman Garry Lander reported today. "So far the summer months, with a total of 2,263,359 square feet traded, are up 5% over the same time-frame last year."

Prices fluctuated downward in July, with leased space (all size categories) declining marginally over July 2006 to $5.86 sfn. Commercial space (all size categories) registered an average of $16.09 sfd, down four per cent from the $16.74 recorded last July.

Sales Market Highlights

In July, there were 52 industrial/commercial properties sold through the TorontoMLS system, and of these 25 were Industrial properties of all size categories that averaged 94.87 per sf. This compares to an average of $73.82 per square foot drawn from non-MLS sources.

See Full Report [in PDF format] »

August 9, 2007 in Toronto Real Estate Update | Permalink | Comments (1) | TrackBack

TypePad Tour of Toronto

The good people at TypePad, who power this blog, have just included a Tour of Toronto in their official Everything TypePad weblog. We are honoured to have been included in their profile, along with several other revealing Toronto blogs. Thank you TypePad.

See the Tour of Toronto (from a blog perspective) »

August 9, 2007 in Toronto Landmarks | Permalink | Comments (0) | TrackBack

Royal LePage to hit the U.S. market

The real estate firm Royal LePage Franchise Services Fund is poised to jump into the troubled U.S. housing market, after reporting second-quarter profit more than doubled. The fund - which reported profit of $3.6-million or 36 cents per unit compared with a year-earlier profit of $1.5-million or 15 cents per unit - is currently shopping around for a major regional real estate company in the U.S.

CEO Philip Soper said it's an ideal time to make a buy at a reasonable price. "Certainly it's a much better time to make an acquisition at the bottom of the market," Mr. Soper said, adding he's in talks with companies in various regions.

"It's just taking some time to find the right target," Mr. Soper said, noting it's not just a matter of price. He said Royal LePage is also looking for a corporate leadership team that will share the Canadian company's vision.

Mr. Soper said the growth in royalty revenue exceeded the fund's expectations, and he attributed the surprising strength in housing unit sales in the Toronto area -- after a flat period in 2006 in particular -- to a smooth transition from a manufacturing-based economy to one that is service-based. "It was well above predictions and yet price increases remain," Mr. Soper said. "It really does indicate this market has some legs in a healthy way."

See article in the Globe and Mail »

August 9, 2007 in World View [of real estate] | Permalink | Comments (0) | TrackBack

Internet real estate use jumps 13%

A report prepared by Comscore Media Matrix shows that the internet traffic on Canadian owned and operated real estate web sites, including mls.ca and sia.ca, has increased 13 per cent since June 2006. The report also shows that Canadians visit real estate web sites more than internet users in 15 other countries, including the United States.

Thirty-one per cent of all Canadian adults visited a real estate web site in the past year, the highest reach of all countries monitored by Comscore. That compares to 29 per cent of all adults in Britain, 25 per cent of all adults in China, and 23 per cent of all those 18 years of age and older in the United States.

The Comscore report says that in the period between June 2006 and June 2007 the average of unique visitors per month increased by 18 per cent on sia.ca, by 6 per cent on mls.ca, and by 5 per cent on the ICX.CA web site. In that one year period the time spent on mls.ca has grown by 15 per cent, while the number of pages viewed has jumped 32 per cent.

The Comscore report also notes that the number of visitors each month switching between the English mls.ca and French sia.ca web sites has dropped in that one year period. The report also shows that in June 2007, the greatest number of visitors coming to mls.ca and sia.ca from search engine sites are coming from Google.

August 8, 2007 in Real Estate Practices | Permalink | Comments (4) | TrackBack

Harry Stinson's last stand

Toronto real estate developer and promoter extraordinaire, Harry Stinson, failed to pay an undisclosed sum of money to David Mirvish by July 31. "Unfortunately, I have lost a great deal of money, and I have lost all confidence in Mr. Stinson as a person with whom to do business."

"Unfortunately, he is not competent to run the businesses operated by SHI and Club Corp." states Mirvish in an affidavit. At the end of last week, Mirvish filed a notice of motion in Superior Court seeking to have Harry Stinson removed from the operations at 1 King West.

See article in today's Toronto Star »

August 8, 2007 in Real Estate Personalities | Permalink | Comments (4) | TrackBack

No real estate siesta this summer

Summer has traditionally been a quiet time in the house-hunting game, but not this year, according to the Toronto Real Estate Board, who said July was a record month, with activity up 26 per cent from last year.

The Riverdale area saw an increase of 73 per cent from the past year, while one part of Etobicoke saw an increase of 116 per cent. "I find it interesting to note that a certain area has a flurry of activity," states Donald Bentley, the president of the Toronto Real Estate Board.

Bentley said what these numbers convey to buyers is that there is a lot of competition for properties, so alternates should be considered.

He also said the real estate market has changed and that summer is no longer deemed the sleepy season. In the past, he said, people went on vacation and things went quiet, but that is not the case anymore.

August 7, 2007 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

Toronto tax phobia benefits wealthy

It seems almost incomprehensible. Despite the urgent need to find a solution to the global warming crisis, the City of Toronto is contemplating deep cuts to our public transit system – one of the few public programs that move us toward a solution.

The proposed cuts to Toronto's subway system – and other vital city services – illustrate how truly short-sighted our rigid obsession with low taxes has become. We've adopted the notion that the highest duty of politicians is to keep taxes low, rather than to make our society – and our world – work better.

The Toronto example is particularly compelling, partly because there is a viable alternative available in the land transfer tax proposed by Mayor David Miller. But city council deferred a decision on the tax last month, following an aggressive anti-tax campaign orchestrated by the Toronto Real Estate Board, which claimed the tax "targets people who can least afford it."

In fact, just the opposite is true. The tax – imposed on property sales, with higher rates on bigger properties – targets people most able to afford it. A top rate of 2 per cent applies on properties worth more than $400,000.

Essentially, it amounts to a small tax on the enormous wealth accumulating in the hands of the privileged minority who own property in Toronto.

August 7, 2007 in Buying Toronto Real Estate | Permalink | Comments (5) | TrackBack

Real estate defies expectations

While most experts saw a second-half slowdown resales actually surged, though prices eased in July

The Canadian housing and development market is showing no signs of retreat. Deep into a mature real estate cycle, it is in sight of setting new annual records, confounding analysts who had expected to see a slowdown in the second half of the year.

Municipalities issued $6.9 billion worth of building permits in June, the second highest month on record but down 0.4 per cent from May, which was the best month ever, according to a report released yesterday by Statistics Canada.

"This is an incredibly strong report and yet more evidence that the construction sector is absolutely on fire," said BMO Capital Markets economist Douglas Porter.

Meanwhile, for the fourth month in a row, home resales have broken a record in the Toronto area. The Toronto Real Estate Board reported 8,912 sales occurred in July, making it the best ever for that month, and 26 per cent ahead of sales at the same time in 2006.

"The local resale market is as healthy as it's ever been," said TREB president Donald Bentley.

Sales are now 14 per cent ahead of the seven month total for 2005, the best year ever.

A separate report released this week by ReMax Ontario Atlantic Canada showed even mature areas such as Forest Hill were experiencing double-digit price increases for detached homes. And some condo sales sites are experiencing lineups not seen since the 1980s.

Economists had been forecasting a more moderate year, expecting sales to trend down, not up.

Continuing job growth, still low interest rates and a solid economy have been credited with the stellar results in the real estate market.

However, while sales have been strong, an increase in listings has also meant more choice for consumers.

Prices for average homes in the Toronto area eased in July, down 2 per cent to $366,012. Year to date, prices are up a moderate 5 per cent over the same time last year.

Analysts are forecasting moderate appreciation in the 4 per cent or under range for the average home next year.

In the Toronto area, builders took out more than $1.2 billion worth of permits, up 31.5 per cent over the prior month. Building permits are up 23 per cent year-to-date, largely due to industrial, commercial and institutional building in the Toronto area.

August 6, 2007 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

Toronto's Tony Neighbourhoods

Do You Live In One Of The Most Desirable Real Estate Areas In The Greater Toronto Area?

There's a certain irony in the fact that the one thing the GTA never seems to run out of is the one thing that's always in short supply. That first 'one thing' is a seemingly insatiable demand to own a home in the city. That 'other thing' is increasing prices that's making the search for a place to live harder to afford. The Toronto Real Estate Board has named the locations where would-be homeowners could have the hardest time ponying up the bucks for new digs and the leader is typically Toronto - it's anywhere near the Yonge St. corridor.

According to the experts, increases near the longest street in the world have escalated to the double digit range in the first six months of 2007 - and there's no sign things will change anytime soon. The average cost for a single detached home in neighbourhoods like Forest Hill, Chaplin Estates, Deer Park and Cedarvale is now a whopping $1,046,500 - a 16.8 percent hike from last year.

Hit the Annex or Yorkville and you'll be paying 14.3 percent more now than you would have in 2006. The asking price for a home in either of those locations currently sits at $883,869. And it's the same almost everywhere - even small houses in Willowdale are going for $618,179, a 12.2 percent increase.

And you'll only get a small break if you look outside T.O. The City Above Toronto is laying claim to its own price wars. Seek out a spot in Thornhill and you'll be shelling out about $565,000 to snatch the ownership deed - up 15 percent. Head to Port Credit and you'll need to sport credit if you don't have the $581,000 sellers are asking up there. That's 11.3 percent more.

How expensive has it become for buyers in this market? The Board claims 56 of the 62 districts it examined have experienced big hikes and vendors in close to half of them are demanding about $500,000 or more. And because demand remains high, a majority of them are incredibly getting 100 percent of their asking price.

What can you do if property is on your menu but the financial fallout leaves you feeling queasy? Consider a condo or townhouse. "With affordability a growing concern in the Greater Toronto Area, more and more purchasers are turning to condominium apartments and townhomes," agrees Michael Polzler of RE/MAX Ontario-Atlantic Canada in a statement. "Close to 80 percent of districts reported an average condominium price under the $300,000 price point, making the product a more attainable first step for an entry-level buyer, particularly in sought-after locations."

But that doesn't completely solve the problem. Condo costs are spiking, too, with many up between 10 and 32 percent over the same time last year depending on where you're looking. And real estate experts not only think it will continue, but that this could be a record setting year for both sales - and asking prices.

Top Housing Price Increase Areas Over Last Year
(Based on single detached home)

Forest Hill, Chaplin Estates, Deer Park, and Cedarvale: $ 1,046,500

Increase: 16.81%

Thornhill: $565,428
Increase: 15.08%

South Hill, Annex, Yorkville: $883,869
Increase: 14.3%

Lansing, Willowdale, Newtonbrook: $618,179
Increase: 12.2%

Port Credit, Mineola: $581,167
Increase: 11.3%

Source: TREB

August 5, 2007 in Toronto Neighbourhoods | Permalink | Comments (3) | TrackBack

Toronto Real Estate Market Update

More Records Broken in July

Toronto Real Estate Board Members reported 8,912 total sales in July, 26 percent ahead of the 7,082 sales recorded in July of 2006, and an all time record for the month. Furthermore, July makes the fourth month in a row that sales have broken monthly records. "The local resale market is as healthy as it has ever been," said TREB President Donald Bentley. "Not only are we running 13 per cent ahead of last year's January - July total of 52,682, we are running 14 per cent ahead of the seven month total for 2005, which became our best year ever."

While sales have set a blistering pace, prices eased in July, down two per cent to $366,012 from June's average of $373,719. "This decline is seasonal in nature," said the President. "Prices tend to ease in July/August as potential homebuyers and sellers go on holiday." He went on to note that the year-to-date average, at $373,326, was up five per cent over the same time-frame in 2006.

Breaking down the total, 3,424 sales were reported in TREB’s 28 West districts and averaged $347,978; 1,590 sales were reported in the 14 Central districts and averaged $470,464; 1,797 sales were reported in the 23 North districts and averaged $392,360; and 2,101 sales were reported in TREB’s 21 East districts and averaged $293,819.

NEIGHBOURHOOD CORNER

North York

There were 5,115 sales in the North York area (C04,C06,C07, and C12 through C15) during the first seven months of 2007, up 12 per cent over the 4,583 sales recorded during the same time-frame in '06. The average price came in at $488,663, a five per cent increase over last year.

See Full Report [in PDF format]

August 4, 2007 in Toronto Real Estate Update | Permalink | Comments (1) | TrackBack

Celebrity-owned home for sale

Paris Hilton lists Hollywood Hills home for at US$4.25 million

Paris Hilton is selling her Hollywood Hills, California, home. The 1926 Spanish-style house went on the market last Friday for US$4.25 million. "This is a very special celebrity-owned home," said a description on MLS, the multiple listing service brokers and customers rely on for a first look at available properties.

The house boasts four bedrooms and 3-1/2 bathrooms and includes a separate guest quarter and office. One bedroom was converted into the "ultimate closet." Hilton's publicist, Elliot Mintz, confirmed the house was put up for sale but declined further comment.

The move comes a month after the 26-year-old Hilton walked out of jail following a bizarre, three-week stay in which she was briefly released to home confinement and then sent back screaming to a lockup. Hilton had been sentenced to a 45-day jail sentence for a probation violation.

A throng of reporters and paparazzi staked out the residence above Sunset Boulevard last month, capturing the celebutante's move from jail to home and back. The onslaught caused some residents to circulate a letter advising neighbours to call police about the noise and traffic.

See photos »

August 3, 2007 in Location, location, location | Permalink | Comments (1) | TrackBack

Real·o·so·phy

Fresh thinking in real estate | the HomeBuyer’s website

Every now and then we discover an interesting real estate website that we just have to recommend to readers of this blog. Here, in their own words, is a description the new version of the Realosophy site which was recently re-launched for home-buyers in Toronto area.

Our Story

Like so many first-time Home-Buyers, each of us found the idea of Home-Ownership a bit overwhelming. What could we afford? Which neighbourhoods would allow us to live the lifestyle we gravitated towards? Did we have to work with one of those real estate agents that made us kind of nervous? And what the heck was mortgage loan insurance anyway? We decided to do something about our shared experience—something we call Realosophy.

Our Way

Today, realosophy.com helps Toronto HomeBuyers make smarter decisions throughout the real estate transaction. We strive to make neighbourhood profiles, school performance reports and a comprehensive HomeBuyers Guide accessible to all of our users—no email address or other personal info required. It’s what we call fresh thinking.

Also, check-out the great Home-Buyers blog: Move Smartly.

August 2, 2007 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

Toronto's investment neighbourhoods

Central core homes 'first and foremost' in market performance

Unprecedented demand for single-detached homes along the Yonge St. corridor prompted double-digit price increases in the GTA's top performing neighbourhoods in the first six months of the year, according to RE/MAX Onta