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Toronto Board Announcement

Changes to TREB's Board of Directors

The Toronto Real Estate Board has announced that Maureen O’Neill of Bosley Real Estate has taken office as TREB President. Ms. O’Neill, who was previously serving as President-Elect, will be President for the remainder of the 2007/2008 term due to the resignation of Donald Bentley.

Ms. O’Neill will also serve as President for the 2008/2009 membership year.

Tom Lebour of Royal LePage Real Estate Services was appointed to fill the position of President-Elect. A membership election for the position of President-Elect for the 2008/2009 term will take place in June.

Stuart Braund of Sutton Group Professional Realty was appointed to fill the position vacated by Mr. Lebour. An election for the position of West Non-Brokerage Director for the 2008/2009 term will take place in June.

As well, Garry Lander of J.J. Barnicke Limited has joined the Board as Chair of the Executive Council Commercial Division. Mr. Lander, who was previously serving as Vice-Chair of the Executive Council Commercial Division, has moved into the position due to a resignation.

President-Elect Tom Lebour is a Past President of the Mississauga Real Estate Board and has been a TREB director since 2004. He is a Broker with Royal LePage Real Estate Services and has been a REALTOR® for 30 years. Mr. Lebour has chaired TREB's Professional Standards Appeals & Value and New Services Task Force, served on Communications and Executive Committees and, most recently, contributed to the MLS Display Task Force and served as Vice-Chair of the Finance Committee. Mr. Lebour is also a member of RECO's Discipline and Appeals Committees and OREA's Education Committee.

September 29, 2007 in Toronto Real Estate Board | Permalink | Comments (1) | TrackBack

Existing housing sales down 4.1%

Resale housing sales remained strong in August even though they were off record highs in July, says the Canadian Real Estate Association. Seasonally adjusted sales dropped 4.1 per cent in August to 43,257 units from July's 45,102. Resale housing sales activity was down in most provinces, particularly in Ontario and Quebec.

But the real estate association says sales in August were up 7.7 per cent over sales in the same month of 2006.

The decline may mean the red-hot real estate market is returning to more normal activity levels, CREA says.

Meanwhile, the national average price of a residence rose 11.2 per cent year-over-year in August to $305,823, according to data from CREA's multiple listing service.

September 28, 2007 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

Urban home prices continue to rise

Home prices in major Canadian cities continued rising strongly through the summer, Royal LePage Real Estate Services reported today. The company's third-quarter survey of the resale housing market found that on a national basis the average condominium price increased 15.7 per cent from a year earlier to $241,818, while standard two-storey properties gained 13.4 per cent to $407,613 and bungalow prices were up 14.3 per cent to $340,941.

"Much like the Canadian dollar, the Canadian housing market is charting its own course, quite independent from the United States and its currency and housing climate," declared Phil Soper, chief executive of the national realty operator.

"The strength of the Canadian dollar, and the fact that the country is adjusting well to its value, will continue to keep interest rates at their existing low-to-moderate levels, boding well for buyers looking to enter the market."

Saskatoon had the most dramatic year-over-year price appreciation - over 60 per cent - while a typical two-storey house appreciated 55 per cent in Saint John, N.B., 27 per cent in Fredericton, 26 per cent in Edmonton, 17.5 per cent in Calgary, 17 per cent in Regina, 15 per cent in Winnipeg and 11 per cent in Vancouver.

The Royal LePage survey of 250 neighbourhoods in 16 cities found that the Alberta market is easing from its recent intense activity, while "Central and Eastern Canada are now rising alongside their western counterparts as their local commodity industries receive increased attention."

It also noted increasing home ownership in Montreal, traditionally a city of renters.

Toronto's housing market "continued to set records throughout the summer," with a typical two-storey house rising nine per cent to $523,320. The country's biggest city "is poised for continued activity and rising average house prices as the city continues to attract both buyers relocating to the city centre from the suburbs, and newcomers to the country."

In Atlantic Canada, "the past few months have seen both Saint John (N.B.) and St. John's (N.L.) become the 'Calgarys' of the East, as several energy-related projects in New Brunswick and Newfoundland gain attention," Royal LePage reported. "While Halifax is not directly related to the oil industry, the city is experiencing a spill-over effect."

September 27, 2007 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

Greying population changing housing

A report published by the Toronto-based Altus Clayton Research Group says it will be another 15 years before the senior "over 75" demographic bubble will have a major impact on homes and housing construction. The report examines the implications of the aging population for the seniors' housing market as the 21st century marches on.

For purposes of the research, seniors' housing is defined as accommodation developed and operated for profit and geared to those 75 or older -- such as retirement homes, apartments, assisted and independent living projects, but not government-regulated nursing homes or long-term care facilities.

According to the report, the majority of the aging population is sitting solidly in the age group of 55 to 74 years old. They are not considered seniors, but the "primary lifestyle buyer group." They are fuelling the recreation housing industry, and will remain the dominant group for the next decade.

"This represents the aging of the early baby boomers into this age cohort -- the oldest baby boomers were about 60 years old at the time of the 2006 census and the youngest about 40," says the report. "It's not until that baby boom starts to head into the 75 and over age groups that the boom in seniors' housing will take place."

The report suggests that Canadian builders should start making plans to provide housing for the approaching "seniors over-75 group". Not only is the population getting older, it's more solid financially and more demanding about what it wants its homes to look like and the amenities that are included.

"In some markets, lifestyle buyers [ages 55 to 74] have accounted for a larger share of new housing demand than would be expected based on demographics alone because local developers and builders increasingly offer housing specifically designed to attract these buyers," says the Altus Clayton report.

The report says developers should consider providing a wide array of tenure -- even in the same building. Not everybody wants to live in a studio apartment, so provide a selection of housing forms. Lifestyle and independence, regardless of physical limitations, are still the goal of seniors, so provide a selection of amenities.

Outside the residence, residents might just enjoy relaxing in an atrium or using some other type of common-area amenity. As residents age, they might require increased levels of health care. Developments should include accommodation for independent living right up to long-term care.

Many older Canadians really don't want to move. They're comfortable surrounded by friends and creature comforts. Because they have the financial wherewithal, they can have some renovations done to adapt to their changing needs.

September 26, 2007 in What's next (in real estate) | Permalink | Comments (1) | TrackBack

Stinson puts businesses in bankruptcy

Harry Stinson, the Toronto real- estate developer who was in competition with Donald Trump to build the city's highest residential building, placed four of his businesses in bankruptcy and, according to the receiver running the operations, violated a court order by doing so.

"It's going to create more chaos," Joseph Latham, lawyer for the receiver, Ira Smith Trustee & Receiver Inc., told Ontario Superior Judge Sarah Pepall at a hearing in Toronto. He urged the judge to annul the bankruptcies.

Stinson operated The Suites at 1 King West, a luxury condominium-hotel, through his company Stinson Hospitality Inc., one of the four companies placed in bankruptcy. He had also proposed to build twin towers, the highest at 81 stories, surpassing a 70-story condominium Trump had planned a block away.

Trump's tower proposal has been scaled down to 57 stories, while Stinson's Sapphire Tower has been shelved, with Sapphire Tower Development Corp. having been placed in bankruptcy protection July 20.

Latham also asked the judge to order Stinson to return financial statements and computer drives taken from 1 King West. He said Stinson removed two computers Aug. 24 and a box of documents on Labor Day, material that should have stayed in the possession of the receiver.

The receiver is reviewing security tapes to see if Stinson was caught on camera removing the material, Latham said.

September 26, 2007 in Real Estate Personalities | Permalink | Comments (1) | TrackBack

Slow American housing recovery

America's housing slow down will be a long haul and a full recovery won’t occur until at least some time in 2009, according to a new report by Housing Predictor, which forecasts more than 250 local housing market futures in all 50 U.S. states.

The report comes on the heals of a Yale University economist warning to Congress that there may be future shocks to the nation’s housing markets.

Economist Robert Shiller, who authored a book warning of the real estate market collapse four years ago told Congress he feared that “the collapse of home prices might turn out to be the most severe since the Great Depression.”

“The decline in house prices stands to create future dislocations, like the credit crisis we have just seen,” he told the Senate’s joint economic committee.

The present real estate slow down has evolved into a crisis with tightening credit standards for home buyers seeking mortgages. The slow down in the housing market is gaining momentum with slower sales in the majority of markets tracked by Housing Predictor, while foreclosures are at a record high.

Former Federal Reserve Chairman Alan Greenspan said he would not be surprised if home prices fall in double-digit decreases over the next year. Deflation in U.S. home prices of that scale nationally would be unprecedented in U.S. history, and would have severe economic repercussions, costing many times the economic damage of the subprime mortgage melt down that started the present financial crisis.

The Housing Predictor analysis indicates inventory levels of homes, condos and land for sale in the majority of states markets are increasing with more foreclosures hitting the market.

See the full story on the U.S. housing market recovery forecast »

September 25, 2007 in World View [of real estate] | Permalink | Comments (4) | TrackBack

Artists rally for fair-tax plan

About two hundred Toronto artists took to Nathan Phillip’s Square last week to rally in favour of the proposed land transfer and vehicle registration taxes that council will vote on in October. Their message: if you want a healthy, vibrant city, you gotta pay for it.

“Our mayor’s initiative to fix this broken structure immediately is Toronto’s only fiscally responsible option. We should all take to it like a duck to water!” said a shirtless Lief Harmsen wearing an inflatable duck-shaped pool toy around his waist. “Our city will be nothing if we support the politicians who try to duck responsibility!”

Instead of lecturing the city about finding efficiencies or getting their financial house in order, speakers at the rally turned their attention towards the questionable tactics and claims of the Toronto Real Estate Board. Councillor Adam Vaughan told the crowd how the board warned him that if he didn’t vote against the new taxes, they would make sure he lost the next election.

Harmsen argued that homeowners will still enjoy hefty profits when they sell their house if the new land transfer tax becomes a reality. “Real estate is sold at the highest price the market can bear. Land transfer tax cannot make a difference to what buyers can afford to pay in total. It can therefore only affect the seller’s capital gain,” he reasoned. “Your capital gain in this town has been fabulously gigantic if you’ve owned your home for a while. Having a working, vibrant city is ultimately what gives land here real value.”

September 24, 2007 in Toronto Real Estate Taxes | Permalink | Comments (2) | TrackBack

Real estate market remains healthy

Toronto-Dominion Bank reports on the housing market

The pace of home sales in Canada is “likely to cool” a bit next year, but housing market conditions will remain healthy, Toronto-Dominion Bank said in a report Friday. The TD economists predict that the pace of resale activity in 2008 will “pare back moderately by 4 per cent from this year's peak; price gains will ease from 10 per cent to 7 per cent; and housing starts will continue to edge down, to 204,000 units.”

The bank said the current pace of activity across Canadian markets, particularly in Western Canada, is not sustainable “and some easing in activity is a good bet.” However, “a U.S.-style correction is not in the cards,”.

“As we watch the unfolding of a severe housing market correction in the United States, Canadian homeowners and investors might be asking themselves if such a scenario is likely to occur in their own market.”

Reuters news agency reported Friday that a survey it co-sponsored with the University of Michigan found that “a record 26 per cent of U.S. homeowners say the value of their homes has fallen during the past year, above the previous peak of 24 per cent seen in 1992.

The TD economists said a huge oversupply has contributed to the slump in U.S. home sales. “Much of the run-up in home prices was also led by lax mortgage financing conditions, which do not prevail in Canada,” the TD report said.

In Canada, the average resale price of a home “will grow by about 10 per cent this year, continuing an ascent that will push the yearly average resale price of a Canadian home to above the $300,000 mark,” according to the report.

“At the same time, evidence is building that the sizable divergence in average resale price gains between the white-hot Western markets and those of the more balanced Eastern markets has begun to narrow.

“Notably, in Vancouver and Calgary, a substantial erosion in affordability over the past few years has started to weigh on demand,” the TD economists wrote. “This development, combined with a surge in new listings, has started to bring those markets back down to earth.”

The economists said the cooling in housing activity “should proceed in an orderly fashion” in Canada.

See full report »

September 23, 2007 in Canadian Market Forecast | Permalink | Comments (1) | TrackBack

Toronto Real Estate Board:

Autumn Market Going Strong

With 3,236 sales so far in this mounth, re-sale housing activity has increased 11 per cent as compared to the first half of September 2006, Toronto Real Estate Board President Maureen O'Neill announced today.

The past five consecutive months have been record-breakers and September is on track to follow suit. It is four per cent ahead of the 3,112 recorded during the first half of September 2005, which became the best September ever.

"Some economists who predicted a soft landing may have to revise their forecasts, said O'Neill. The real estate market continues to prove its strength month after month. There simply is no better investment."

The average price for a home in the Greater Toronto Area currently stands at $364,364, an increase of nine per cent compared to first half of September 2006.

Neighbourhoods throughout the Greater Toronto Area reported strong sales in the first two weeks of this month.

The High Park area of Toronto (W2) saw twice as many sales compared to mid-September 2006, due to a sizeable increase in the sale of semi-detached homes.

West Agincourt in Scarborough (E04) saw 51 per cent more homes sell in the first half of September compared to the same timeframe a year ago, showing strength in all housing categories.

In the downtown core (C01), condo-apartment activity pushed the area's overall total 40 per cent higher than sales to mid-September 2006.

Condominiums were also the driving force behind a 29 per cent increase in overall mid-month sales in South Richmond Hill (N03).

"The market is showing strength in a wide range of neighbourhoods and housing types, said O'Neill. We're seeing strong activity and stable price growth so there is a lot to be positive about."

Source: The Toronto Real Estate Board

September 21, 2007 | Permalink | Comments (0) | TrackBack

House-hunting for the über-rich

For house hunters at the highest echelon of the housing market — we’re talking properties valued in the millions — touring homes may involve being escorted in a private jet or helicopter for an aerial view, according to the website for the Daily Telegraph in the United Kingdom.

Buyers of such homes often acquire their residences through private sales, “low-key transactions” in which the availability of the residence is known only to a select few, and the home never actually hits the public market. Buyers can be charged “house-search fees.” For instance, one company, Quintessentially Estates, charges clients 1.5% the price of a property — or £30,000 for a £2 million property, the website says.

The real-estate agents who facilitate such sales often do more than just initiate and close the transaction — they often stay involved, helping with details like finding furnishings, introducing families to local schools and hosting house-warming parties, according to the story.

September 19, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Bringing neighbourhood options home

Toronto real estate website helps home buyers fit into a booming housing market

Arecently relaunched website, Realosophy.com helps Toronto consumers understand their home buying options in a hot real estate market. The expanded website now offers Toronto and GTA neighbourhood profiles featuring at-a-glance school performance reports and an insider's guide to the home buying process. Realosophy.com is a free information service that does not require users to submit email addresses or other personal information. "Toronto home buyers are feeling anxious about fitting into a booming real estate market," explains Realosophy's founder, John Pasalis. "Buyers are increasingly diverse. They want their homes to fit their particular lifestyles. But media reports about sky-rocketing prices and fake multiple offers leave them wondering how to make this happen."

Realosophy.com helps empower consumers with the following resources:

1) Toronto and GTA Neighbourhood Profiler

The profiler combines popular online tools such as Google Maps with housing and school data in an easy-to-use neighbourhood search format. It offers profiles for over 175 neighbourhoods including lesser-known options. Each profile highlights average area prices as well as dominant housing types, allowing users to quickly assess affordability and lifestyle suitability. The profiler also offers consumers a unique look at schooling options. Over 1,700 public and private schools are mapped by neighbourhood. Provincial school data is presented at-a-glance to illustrate the performance of local public schools. Realosophy understands that not all consumers measure neighbourhoods with the same yardstick. The profiler's 'deal breaker' feature brings the all-important morning coffee run to life as Starbucks and Tim Hortons locations are mapped by neighbourhood.

2) The HomeBuyers Guide

The HomeBuyers Guide is a pro-consumer look at home buying in Toronto. Using a step-by-step, jargon-free approach, the guide provides consumers with insider tips on handling major worries from choosing the right real estate agent to picking out a fake multiple offer.

For background information, including Realosophy's story, team bios, screenshots and fun facts, visit: www.realosophy.com/press.

September 18, 2007 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack

A builder's take on Toronto's taxes

A top official of Daniels Corporation, a big Toronto-area condo and home builder, was among those who showed up at city hall last week to back the mayor's campaign for new taxes. "If we don't have proper city amenities like transit and other factors for a sustainable city, then people aren't going to want to buy condos irrespective of whatever tax they pay," said Niall Haggart, vice-president of Daniels.

Haggart conceded that no one likes more taxes, such as the mayor's proposal for a land transfer tax that would bring in $300-million a year. But, he said, "we all have to face up to reality. "Was I having a big problem with the land transfer tax?" he asked. "I was not."

That view is at sharp odds with the Toronto Real Estate Board and other anti-tax business groups poised for round two of the fight.

For all the talk of taxes in Toronto, Mr. Haggart said, the news media are paying scant attention to tax issues outside the city.

In Mississauga, for example, the city charges development fees of $14,000 for one or two bedroom units (a cost passed on to buyers), compared to less than half that rate in Toronto. As well, he says, the region of Peel is proposing a 79-per-cent hike in development charges to $15,000, up from $8,500 currently.

"Where are all the media?" he asked. "Where is the press?"

September 17, 2007 in Toronto Real Estate Taxes | Permalink | Comments (2) | TrackBack

Maureen's "phantom" phantom bids

The secret's out. "It's one of the oldest tricks in the book."

The incoming head of the Toronto Real Estate Board has come out swinging against phantom bidding tactics after denying they even existed when she ran for the job three months ago. "It's dirty realty, it really is," Maureen O'Neill said of agents who fabricate offers during bidding wars. She is now calling on the Real Estate Council of Ontario (RECO) to yank the licences of agents convicted of using phony bids.

O'Neill made her comments after learning that the Toronto Star had received documents proving the Real Estate Council of Ontario has been called upon to deal with complaints about bidding war tactics. Until this week, she steadfastly refused to acknowledge made-up bids occur, saying the Ontario council's CEO Tom Wright and registrar Allan Johnson assured the Toronto Real Estate Board's directors on July 19 that no complaints had ever been received.

But the Ontario council's spokesperson Sandra Gibney said Friday that Wright and Johnson made no such statements and that "RECO does not know why Maureen O'Neill is claiming otherwise." Ms. Gibney added in an emailed statement, "If Ms. O'Neill had contacted RECO prior to responding to questions about RECO's complaints statistics, RECO would have provided the same information that you (the Toronto Star) received".

Read more about "phantom bids" in the Toronto Star, here and here ...

September 16, 2007 in Real Estate Regulations | Permalink | Comments (0) | TrackBack

MLS® home sales remain strong

The resale housing activity in Canada’s major markets edged back from record levels but remained strong in August 2007, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted national MLS® sales activity totaled 29,717 units in August 2007, down 5.3 per cent from July when monthly sales hit the second highest level on record. While MLS® sales edged lower in many major markets, the national monthly decline was largely the result of fewer sales in August in Toronto, Montreal, Edmonton and Vancouver.

The month-over-month decline in seasonally adjusted sales in August also reflected a return to more normal activity levels from the record levels seen in recent months. August 2007 marked the eighth highest monthly MLS® sales level on record for seasonally adjusted activity in Canada’s major markets. Seasonally adjusted transactions posted the third highest monthly level on record in Saint John NB and St. John’s NF, and reached the fourth highest level ever in Ottawa.

Actual (unadjusted) MLS® sales activity in August was up 6.1 per cent compared to the same month last year. This continues the trend where transactions have posted year-over-year gains in every month so far in 2007. The year-to-date MLS® sales total including August numbered 265,833 units, an increase of 9.8 per cent from levels recorded in the first eight months of last year. Year-to-date transactions continue to run ahead of year-ago levels in almost all major markets.

“There were adjustments to mortgage rates in July that may have had an impact on the re-sale housing market in August” says CREA Chief Economist Gregory Klump, “but the housing market continued at near-record levels because the Canadian economy is strong, and two factors that influence housing – employment and consumer confidence – are strong.”

The seasonally adjusted totals for MLS® residential new listings (48,817 units) edged down slightly in August from levels recorded in July, but still represented the sixth highest monthly level on record for new listings. The 1.5 per cent decline in new listings compared to July was the result of fewer new listings in Toronto and Vancouver, which offset the increase in re-sale housing listings in Calgary, Winnipeg and Saskatoon.

That combination of a decline in MLS® sales and a slight drop in new MLS® listings in August meant the resale housing market was more balanced compared to July. High numbers of new listings have caused market conditions in Calgary, Edmonton, Saskatoon and Regina to become more balanced since the beginning of the year, when these were four of the tightest housing markets in Canada. While Winnipeg remains the tightest of Canada’s major markets, it also became more balanced in August. In contrast, market conditions in Vancouver and Kitchener-Waterloo were tighter in August than in any other month this year.

“The move to a more balanced market means some buyers will take more time to shop,” says CREA President Ann Bosley. “Canada’s housing market continues to show resiliency to the sub-prime controversy in the United States, and continues to be a major positive factor in the Canadian economy.” Research published by The Canadian Real Estate Association shows each MLS® residential housing sale generates an additional $32,200 in consumer spending.

“With a higher supply and continued strong demand, we anticipate the re-sale housing market will remain strong and steady for the balance of the year" the CREA President adds. “This is a housing market built on good fundamentals, including good lending practices.”

The major market MLS® residential average price rose 11.2 per cent year-over-year to $325,881 in August. Average price reached the highest level on record in Saskatoon, Sudbury, Windsor and St. John’s, and remained above levels recorded in August 2006 in all major markets.

Source: Canadian Real Estate Association.

September 15, 2007 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

Housing boom will falter, bank says

Canadian home prices deviating from long-term trends

Continuing tight supply-demand conditions have lifted real housing valuations in Canada above their long-term trend, raising the risk of an eventual softening in prices, according to the latest Real Estate Trends report, released yesterday by Scotia Economics.

"The fundamentals underpinning Canada's housing market are still quite good," said Adrienne Warren, Senior Economist, Scotia Economics. "Unemployment is low, immigration is high and apartment vacancy rates are tight. There is little evidence of overbuilding or speculative buying. The industry also has relatively little direct exposure to subprime lending, with these loans accounting for only about five per cent of domestic mortgages in recent years compared with about 20 per cent in the United States.

"Yet, there is little doubt that current trends are unsustainable," added Ms. Warren. "Affordability is becoming increasingly stretched for many would be buyers after almost a decade of rising home prices. More recently, economic risks have increased in the wake of the intensifying financial market turmoil stemming from the U.S. subprime mortgage problems."

Moreover, from a long-term perspective, there is growing evidence of overvaluation in home prices in some parts of the country, a precursor to a period of softening conditions. In all 15 cities examined in the report with the exception of St. John's, current inflation-adjusted price levels are above their long-term trend. The national average deviation at mid-year was roughly eight per cent, however, there are big regional variations, ranging from just one per cent in Ottawa to 25 per cent in Edmonton.

"Some deviation from underlying trends is to be expected at the late stage of a housing boom," said Ms. Warren. "At the peak of the prior two housing cycles in 1976 and 1989, national home prices were 12 per cent and 18 per cent, respectively, above their long-term trend. The smaller degree of overshooting this time around, and the sustainability of price appreciation, may reflect in part an undervaluation of Canadian real estate prices in the late 1990s and into the early part of this decade."

Canada also ranks relatively low in the degree of house price overvaluation relative to other major developed nations. The economist estimates that average real home prices in the United States carried a near-record 14 per cent premium in 2005. U.S. average valuations have since slipped below trend amid a large and growing supply overhang and weakening demand.

Despite the deviation in the level of Canadian home prices from long-term trends, price growth remains consistent with short-term supply-demand dynamics. Most major markets in Canada are still categorized as sellers' territory in which prices would be expected to rise faster than inflation. By and large, those cities enjoying the biggest price increases are also facing the tightest supply-demand conditions, including Regina and Saskatoon.

"The further domestic home prices climb above underlying economic fundamentals, the greater the risk of an eventual correction," said Ms.Warren. "The 1976 and 1989 housing peaks were both followed by some adjustment in real prices. In the past, this adjustment has normally occurred though a period of inflation erosion as opposed to nominal price declines."

Source: Scotiabank Real Estate Trends Report »

September 14, 2007 in Canadian Market Forecast | Permalink | Comments (0) | TrackBack

Toronto's fair tax plan

"A great city does not come for free"

A message Toronto's Mayor Miller:

Fellow Torontonians,

The debate over Toronto’s fiscal situation is really part of a much larger debate about the City we want Toronto to be. The Toronto I want to build and the city Torontonians voted for last November is one with excellent public services — a city that is prosperous, livable and provides opportunity for all.

But a great city does not come for free. Toronto remains the only large world city that does not have access to sources of revenue that grow with the economy. Simply stated, Toronto does not have the money needed to pay for the critical services we have all come to rely upon, let alone to invest in our city. Without new revenues and greater control over our own future, we will all see and feel the effects of service cuts that take this city backward. That’s not my city.

City Council has an opportunity on October 22 to approve a new Land Transfer Tax and a Personal Vehicle Registration Tax that together would generate more than $350 million every year. That would put us on the path to a sustainable future.

I know that no new tax is ever popular. But expecting homeowners and businesses to bear the burden of double digit property tax hikes is unfair. Seniors on fixed incomes and small businesses would be devastated. A sales tax on the purchase of property, with rebates for first-time buyers, is far more reasonable than property tax increases of 18 per cent for residents and 6 per cent for businesses. Our proposal is a fair tax plan for Toronto.

The choice is clear. What is at stake is nothing less than the future of our great city and the very quality of life we currently enjoy.

Sincerely,

Mayor David Miller

See the Fair Taxes for Toronto website »

September 14, 2007 in Toronto Real Estate Taxes | Permalink | Comments (0) | TrackBack

Housing affordability deteriorates

Affordability in Toronto sharpest deterioration since 1994

After some improvements earlier in the year, Ontario's housing affordability deteriorated sharply in the latest quarter, according to a new housing report issued today by RBC Economics. "A combination of higher house prices, rising mortgage rates and increasing utility costs have forced affordability to deteriorate dramatically across all housing segments," said Derek Holt, assistant chief economist, RBC. "Despite the sudden drop, if we take a historical look back at the affordability numbers for Ontario, the cost to own a home still remains comfortably below levels witnessed in the late 1980s."

RBC's Housing Affordability report, which measures the proportion of pre-tax household income needed to service the costs of owning a home, increased across the board in Ontario to 37 per cent for the benchmark detached bungalow, 43 per cent for the standard two storey home, 30 per cent for the standard townhouse and 28 per cent for the standard condo.

According to the report, the housing cycle has been altered by the impact of extended amortization products. For example, mortgage payments for an average condo run at roughly $1,058 per month (under standard assumptions). Extending the mortgage five years shaves off roughly $70 from the monthly payment; an additional five-year extension shaves a further $45 off; and extending the mortgage a full 15 years to a 40-year term, leads to a further $30 drop in monthly payments.

Affordability for all four housing segments eroded dramatically in the second quarter in Toronto, the sharpest deterioration since 1994. Similar to the rest of the province, sizeable gains in house prices, higher mortgage rates and higher utilities contributed to the decline. The report noted that while hot pockets in the Toronto core are driving double-digit price growth and bidding wars, the broader Toronto area continues to see healthy and fairly balanced housing market conditions.

"A more significant challenge and bigger risk to Toronto's affordability is the combination of potentially higher property taxes and a jump in property value assessment levels, as the current freeze on assessments will be lifted in 2008," said Holt.

Following three quarters of fairly stable conditions, Ottawa's housing market also felt the nationwide hit, as affordability dropped across all housing segments there. According to the report, it was the sharpest decline for the region in three years. On a more positive note, while the pace of price growth has picked up modestly in 2007, price gains continue to run in line with household income gains. Slightly tighter demand will help support healthy price gains through the remainder of 2007.

The Housing Affordability measure, which RBC has compiled since 1985, is based on the costs of owning a detached bungalow, a reasonable property benchmark for the housing market. Alternative housing types are also presented including a standard two-storey home, a standard townhouse and a standard condo. The higher the reading, the more costly it is to afford a home. For example, an Affordability reading of 50 per cent means that homeownership costs, including mortgage payments, utilities and property taxes, take up 50 per cent of a typical household's monthly pre-tax income.

The report also looked at mortgage carrying costs relative to incomes for a broader sampling of smaller cities across the province, including London, Kitchener, Windsor, St. Catharines, Brantford and North Bay. Many of Ontario's smaller cities witnessed a broadly-based affordability deterioration. For these smaller cities, RBC has used a narrower measure of housing affordability that only takes mortgage payments relative to income into account.

RBC's Affordability measure for a detached bungalow for Canada's largest cities is as follows: Vancouver 71 per cent, Calgary 45 per cent, Toronto 45 per cent, Montreal 36 per cent and Ottawa 31 per cent.

Highlights from across Canada:

British Columbia: Housing affordability eroded further across the province as rising mortgage rates and house prices squeezed out prospective home-buyers. The relief seen in the two-storey home segment earlier this year was reversed this quarter with all four home segments witnessing deteriorations in affordability.

Alberta: Housing affordability deteriorated significantly in the second quarter of 2007. Alberta's house prices have been growing at a pace well above incomes and in a short time have created stressed affordability conditions.

Saskatchewan: The Saskatchewan housing market suffered its worst ever quarterly deterioration of affordability on record. At the start of the year, the influx of people caught the housing supply off guard, forcing affordability to deteriorate. This momentum continued into the second quarter as the pace of annual price gains soared into the double digit range.

Manitoba: With house price gains picking up pace and mortgage rates continuing to rise, the province's housing affordability has deteriorated for a second straight quarter. Manitoba saw the greatest quarterly decline in affordability in more than a year.

Quebec: Despite only modest increases in house prices this past quarter, climbing mortgage rates, utilities and taxes drove an erosion in Quebec's housing affordability. However, the province's decent economic fundamentals still support housing markets, with job growth at a healthy two per cent rate this year and incomes keeping pace with gains in house prices.

Atlantic region: An environment of rising mortgage rates and strong price gains created pricier second quarter housing conditions in Atlantic Canada. While each of the housing segments witnessed a significant affordability deterioration, it was the two-storey and condo segments that saw the sharpest erosion.

The full RBC Housing Affordability report is available online »

September 13, 2007 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

Tips for improving curb appeal

When selling your home, the goal is to sell it quickly at the highest price while investing as little as possible in renovations. With a limited budget and a little effort, you can greatly increase your home's appeal by focusing on what buyers will see on the first visit. 

If they don't like what they see outside, they'll never walk inside. Curb appeal can often mean the difference between a house sitting for months or selling in the first week.

The view from the street can net you more traffic than you might think. Eighty-four percent of all home buyers use the Internet to shop for a new home, according to 2006 figures from the National Association of Realtors.

First impression is key. People shopping on the Internet give it one look. If they don't like what they see, that's it.

Here are a few tips to help you prepare your house for sale:

Tip #1: Refresh the Exterior

First impressions count when it comes to selling a home. A majority of buyers will not even get out of their car if they do not find the exterior appealing. The best way to improve your exterior includes:

Tip #2: Tidy Lawn and Landscape

Home buyers associate the condition of your lawn and landscape with the condition of your home interior. The best way to enhance the yard includes:

Tip #3: Create An Inviting Entrance

The front door to your home should invite buyers to enter. The best way to improve this includes:

Tip #4: Reduce Clutter and Furniture

A buyer cannot envision living in your home if they cannot see your house. A home filled with clutter or even too much furniture distracts buyers from seeing how they can utilize the space your home offers. If you have limited storage space, you may want to consider renting a temporary storage unit to place items you wish to keep. The best way to improve your home includes:

Tip #5: Clean, Clean, Clean

The cleanliness of your home also influences a buyer's perception of it's condition. The appearance of the kitchen and bathrooms will play a considerable role in a buyer's decision process, so pay particular attention to these areas. The best way to improve this includes:

Tip #6: Make Minor Repairs

The small stuff does count, especially with first time home buyers. Without dismissing the importance of repairing major items such as a leaking roof or plumbing, you do not need to spend money on replacing these items. Instead, focus on the minor repairs that make your home visually appealing. The best way to improve your home includes:

Tip #7: Showcase the Kitchen

The heart of any home is the kitchen. If you are going to spend any money on renovations, this is the one area where you will see the greatest return. Even with a modest budget, focusing on a few key areas can make a great difference in getting the asking price for your property. The best way to showcase the kitchen includes:

Tip #8: Stage Furniture

Furniture placement can enhance the space of your home while giving buyers an idea of how to best utilize the space with their own belongings. Take some time out to rethink how different areas in your house could be used. Some ideas to think about includes:

Tip #9: Light Up The House

Create a sense of openness and cheerfulness in your home through lighting. To improve the lighting try:

Tip #10: Freshen up the Garage or Workshop
Tip #11: Add Natural Touches

You can easily add color and style to your home by placing fresh flowers and fruit bowls throughout it. Some ideas to consider includes:

Tip #12:  De-personalize.

Remove objects that your potential buyers won't be able to identify with. For example, political and religious items may turn off whole groups of buyers, because they cannot "imagine" your home as their home. Buying a home is an emotional decision, and you want potential buyers to make an emotional connection with your home by being able to "see" themselves in it.

Tip #13:  keep your pets under control

Always keep your pets under control. Try confining them to a specific area. Although you may love your pets, they can be off-putting to other people, and smells can be offensive, so make sure there are no lingering odours in furniture or flooring, and if there is, get them cleaned before you sell.

Tip #14: Fit into the community.

If there are tons of kids in the neighborhood, it's OK to have a bike in the yard. Not so if your neighborhood is mostly retirees. Keep your audience in mind as you show your house.

Tip #15: Don't Forget the Rear View

Buyers doing a drive by will try their best to see your back yard. If it's visible from another street or from someone's driveway, include it in your curb appeal efforts.

Tip #16: Evening Curb Appeal

Do your curb appeal exercise again at dusk, because it isn't unusual for potential buyers to drive by houses in the evening. One quick way to improve evening curb appeal is with lighting:

Cosmetic changes do not have to be expensive. In fact, costly home improvements do not necessarily offer a good return on your investment when you sell. It’s attention to the basic, anything that says “this home has been carefully maintained”, that will help you get the price you want.

September 13, 2007 in Selling Toronto Real Estate | Permalink | Comments (0) | TrackBack

Toronto area housing starts fall

Sales of new homes in the Toronto area remain healthy, but that isn't being reflected in current housing starts, according to Canada Mortgage and Housing Corp. Starts edged down in August to a seasonally adjusted and annualized 32,000 from 35,100 in July, the federal housing agency reported yesterday.

One problem has been that developers are having trouble getting work crews, which are too busy with single detached housing to work on condominiums.

"While pre-construction sales of condominium apartments remained at record levels over the past year, condominium apartment starts have been lower," said CMHC senior market analyst Jason Mercer.

"The answer to this conundrum lies with the fact that builders have completed fewer condominium projects this year and have not been able to shift as many resources to new projects."

The current slowdown could cause capacity problems in the future, said Brian Johnston, who heads the Ontario Home Builders' Association and is president of Monarch Corp., one of the largest Canadian builders.

"Right now you've got a situation where the pipeline is filled and you've got a potential blockage," said Johnston.

Everyone from builders to architects and city hall staff is probably running flat out to deal with demand, said Johnston.

With the record number of condominium sales in the last year, the worry if problems continue is about the potential for a record number of delays down the road for condominium purchasers taking possession.

As of the end of July, sales of new condos in the Toronto area hit 13,365, compared with 10,722 at the same time last year. CMHC is expecting this to be a record year, with 18,000 condo sales.

Nevertheless, condo starts were off 48 per cent in the first eight months of the year, compared with a year earlier.

"We are a little surprised that this is still continuing, but obviously the system is experiencing some capacity issues," said Johnston.

While the Toronto area experienced a drop, housing starts across Canada rose to 226,500 seasonally adjusted and annualized units in August from 215,600 in July. Much of the increase came in condominiums, up 10 per cent from the prior month.

CMHC has said condos are selling so well because they provide a choice for some would-be homeowners priced out of the single detached home market.

"While detached home construction weakens next year, a stronger apartment sector will support new construction activity in the back half of this year and into 2008," said CMHC economist Ted Tsiakopoulos.

In a separate report released yesterday, Statistics Canada said the pace of growth in prices for new homes across the country slowed for the eleventh-straight month in July. Selling prices were up 7.7 per cent from a year earlier. In June, the year over year growth was 7.8 per cent.

That's probably small consolation to some would-be purchasers across Canada, including those in Saskatoon, where housing prices posed a record increase of 51.4 per cent year over year.

Regina's increase was 23 per cent.

Price increases for new homes in Toronto and Oshawa were much more moderate, up by about the rate of inflation, or 2.3 per cent.

Source: Canada Mortgage and Housing Corp.

September 12, 2007 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

Commercial Real Estate Markets

August Sees Over 800,000 Square Feet In Leased Space

With 806,743 square feet of space leased, August 2007 turned out to be another solid month for the Greater Toronto Area Industrial/Commercial real estate market, Toronto Board Commercial Council Vice Chairman Garry Lander announced today.

“This summer, a total of 3,070,102 square feet of space has traded through the TorontoMLS system,” Mr. Lander said. “This is up 13 per cent over the 2,716,065 recorded during summer 2006.”

At $6.35 sfn, prices for Industrial leased space (all size categories) rose 12 per cent over August 2006. Commercial properties also increased from that time-frame, rising 12 per cent from $15.86 sfn to $17.86 sfn.

Sales Market Highlights

In August, 53 sales of Industrial/Commercial properties took place through the TorontoMLS system. Of them, 23 were industrial buildings in all size categories that sold for an average of $100.30 per square foot. This compares to a figure of $78.54 derived from non-MLS sources.

See Full Report [in PDF] »

September 11, 2007 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

A new home, fresh off the line

At 224 McDougall Crossing there's a foundation without a house. Next week, the rest will arrive, right down to the kitchen standing in place and the chandelier glittering in the dining room. Megabuilder, Mattamy Homes is constructing a subdivision of houses in Milton, a Toronto suburb, that are assembled on the factory floor and then transported by truck. "The chandeliers are hanging, the tiles are grouted, the hardwood is shined up," says Ron Cauchi, president of Mattamy's Stelumar operation.

Mattamy is Ontario's largest house builder and the company's new Stelumar plant in Milton represents the first time in Canada that prefabricated houses have been turned out by a mainstream builder on such a large scale.

Anybody who purchases a new house from a builder wants two things: a sturdy structure and a predictable closing date. Legions of buyers have suffered through problems with both.

For years, Mattamy has been looking for a way to improve the quality of the houses it builds and the reliability of move-in dates by transferring some parts of the construction process to the factory floor.

See article in the Globe and Mail »

September 10, 2007 | Permalink | Comments (2) | TrackBack

Not Toronto's bedroom

Durham Region moves beyond its reputation as Toronto's bedroom community

A commuter town. A sleeper community. Suburbia. Call it what you will, but the term no longer applies to the lakeshore communities that make up Durham Region. “This area used to be a bedroom community for Toronto, but not anymore,” says Don Campbell, president of the Real Estate Investment Network (REIN). “It’s really come into its own.”

The Alberta-based real estate market guru says he was pleased to find a growing community when he visited Durham for a tour in late August.“It is an area going through a positive transition,” he said.

In the last 10 years, Durham’s population has exploded, reaching close to 600,000 at the last census count in 2006. Much of the growth has pushed out of Toronto, as people opted for affordable housing at the cost of a longer commute to the office.

But Mr. Campbell says recent economic indicators point to the fact that Durham is moving away from being just a bedroom community for Toronto employees. In fact, the economics are so strong that REIN listed Durham Region among the top 10 places in which to invest in property in Ontario in its 2007 publication, distributed to real estate investors across Canada.

REIN toured the region several years ago to make predictions about potential growth and as they retraced their steps this year, Mr. Campbell says Durham has managed to live up to most of those expectations.

“This region, in fact, has outperformed what we predicted the last time we were here,” he said, adding that the area would not have climbed its way into the top 10 if it was just a bedroom community.

“Bedroom communities typically are cyclical in nature. They go up and down,” he said. “People can leave any time to new towns with equal access to their jobs in the main economic centre.”

Commuter towns are usually defined as those having no economic base of its own to speak of -- jobs typically centre around the service-based industry, such as grocery stores and restaurants.

But a thriving community is one that has its own economic centre that offers jobs in a variety of industries -- making it a solid choice for a real estate investor looking to capitalize on a property by holding on to it over time.

“If your job is in Durham Region, then living in Durham Region makes more sense,” Mr. Campbell said.

So what are the economic indicators that make REIN so confident in endorsing Durham as a place to invest?

“The lifestyle it offers, local job growth, the transportation links,” he says, rhyming off just a few of what he believes are Durham’s greatest assets.

REIN’s report on top investment areas gives Durham a thumbs-up for being an area where the average income and the average job growth are increasing above the provincial average. Another thumbs-up goes towards local political leadership that has “created an economic growth atmosphere,” the report states.

For investors, it seems to be good news all around.

Speaking to investors at the recent REIN real estate tour -- which took 240 investors from across the country on a trip through Pickering, Ajax, Whitby and Oshawa -- Mr. Nevin listed the neighbourhoods ripe with potential for investors.

“The potential is certainly there,” he said. “There are some good transitional areas that have all this development happening around them. They will eventually be influenced by that development.”

September 9, 2007 in Location, location, location | Permalink | Comments (0) | TrackBack

Toronto real estate remains hot

August Sets New Record, Breaks 8,000 Sales

August 2007 became the fifth record-setting month in a row, with 8,059 sales reported by TREB Members throughout the Greater Toronto Area, TREB President Donald Bentley announced today. "This figure is up 15 per cent over August of last year, and up seven per cent over the 7,498 sales recorded during the same month in 2005, which was the previous "best ever" performance for the month of August," said the President. "Summer of 2007 has been hands-down the most active holiday season for the resale market in the history of the Toronto Real Estate Board."

While sales roared ahead, prices remained affordable in August, with a recorded average of $361,890. This figure is up seven per cent over the $338,192 recorded during August of 2006. "While the last decade has seen five record breaking years, and a good possibility of a sixth in 2007, year-over-year prices increases have remained in the single digits. This kind of activity is sustainable for a long time."

Breaking down the total, 3,057sales were reported in TREB’s 28 West districts and averaged $343,493; 1,444 sales were reported in the 14 Central districts and averaged $453,718; 1,653 sales were reported in the 23 North districts and averaged $403,539; and 1,905 sales were reported in TREB’s 21 East districts and averaged $285,665.

NEIGHBOURHOOD CORNER

Rosedale

There have been 100 total residential sales within Rosedale (part of C09) this year for an average of $1,208,414, up four per cent over the first eight months of 2006. Of these 34 were detached homes, which averaged $2,203,457. This is up four per cent over the $2,087,600 recorded during the same time last year.

See Full Report:

September 6, 2007 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

Community Safety - Amber Alerts

The Toronto Real Estate Board is a proud participant in the Amber Alert program. When an abducted child is in imminent danger an alert is posted immediately on TorontoMLS system.

As professionals who spend a great deal of time in the community, Realtors recognize that being alert could save someone’s life. Being engaged in community safety not only makes good business sense, it’s the right thing to do.

If you wish to participate in the Amber Alert program here is contact information:

The Toronto Police Service posts recent incidents up-to-the-minute at:

http://www.torontopolice.on.ca/newsreleases/

You can also register to have alerts emailed to you at:

https://secure.torontopolice.on.ca/tpsml

In York Region recent incidents are posted at:

http://www.police.york.on.ca/media.asp

To receive community alerts in York Region visit:

http://www.police.york.on.ca/rev911/addrecord.asp

Durham Regional Police post recent incidents in the media section of their homepage at:

http://www.drps.ca/netscape/index.asp

Wanted persons are posted at:

http://www.drps.ca/netscape/whatsnew/missingperson_browse.asp?Related_With=Most_Wanted

Missing persons in Durham are posted at:

http://www.drps.ca/netscape/whatsnew/missingperson_browse.asp?Related_With=Missing_Person

Peel Regional Police also post recent incidents in the media release section on homepage of website.

http://www.peelpolice.on.ca/

You can also subscribe to receive news releases from Peel Police through the following link:

http://www.peelpolice.on.ca/Subscribe.aspx

September 5, 2007 in Real Estate Practices | Permalink | Comments (1) | TrackBack

Condos Are A Lofty Concern

While American home building and sales have cratered and prices have dipped 3.2% on the year, Canadian resales rose nearly 10% in July to a new record and average prices jumped 12.6 per-cent to a record $311,495.

Toronto high-rise sales, meanwhile, are in their second year of 24% increases year-to-date. The luxury hotel-condo -- usually commanding the top floors of some architectural jewel and bearing a marquee name like Ritz or Four Seasons -- is the latest boom's must-have.

"It is now common to see 2,000-to 2,500-square-foot condos selling for $2-million or more with property taxes and condo fees to match," Sherry Cooper, chief economist at BMO Capital Markets, said in a recent note. "Per square foot, condo prices are now higher than single-family home prices of similar quality and location."

At the Four Seasons hotel-condo in Yorkville for example, a 2,500-square foot condo sells for more than $4-million; a 3,900-square-foot penthouse has a $7.4-million price tag.

Although the prices may not be quite so lofty, they are racing across the country, too, with Saskatoon joining Calgary as the latest hot spot.

Analysts are at pains to point out how the Canadian market is in much better health than the United States.

The current subprime default rate in Canada is less than 3% compared with 13% and growing for the United States," Warren Lovely, economist at CIBC World Markets said in recent note. And there isn't much subprime debt in Canada anyway. It accounted for barely 5% of mortgage originations during 2005-06, well below the 20%-plus share in the United States.

As well, Canadians have taken out fewer mortgages with teaser or adjustable rates and they have traditionally relied less on home lines of credit to fuel consumption.

Builders and lenders in Toronto, burnt by the 1990 real estate bust, are smarter too.

"There's a healthy amount of discipline that has been inserted into the Canadian system that was a direct result of the problems of '89, '90, '91," said George Carras, vice-president at RealNet Canada Inc. Typically a project is 60% to 70% sold before a shovel breaks ground. Deposits are also quite significant and required at various milestones over the course of construction.

See atricle by Jacqueline Thorpe in the Financial Post »

September 4, 2007 in Canadian Market Forecast | Permalink | Comments (0) | TrackBack