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Toronto housing market in '08

Toronto's housing market will remain strong in the new year, an economist with TD Bank predicts. However, the real estate boom will lose some of its intensity as home price appreciation will slow down significantly, said economist Craig Alexander.

"There will be a few factors that will determine how fast homes sell on the market." For example, Toronto Mayor David Miller's new land transfer tax will slow down the sales trend, he said. However, if the city continues to have a low unemployment rate, then real estate sales will remain steady.

"Jobs will be available, income will rise, and that's your fundamental support for your housing market," he said. Alexander also predicted interest rates would remain low.

Nonetheless, he said an unprecedented supply of housing coming into the market -- especially the condo market -- will slow the rapid pace housing prices have increased over the last few years. "It still will remain a seller's market but not as tight as it has been, so home prices continue to rise, but rather than rise at double digit pace, something in the mid-single digit range," he said.

December 31, 2007 in Toronto Real Estate Update | Permalink | Comments (2) | TrackBack

Toronto Real Estate Board in 2007

Phantom bidding ignites firestorm

It was the summer of the "wars" in Toronto – the real estate bidding wars, that is. The battlefield? A practice called phantom bidding, in which a seller's realtor concocts bogus offers to help boost a property's selling price or spook buyers into rushing their offers.

The issue hit the headlines after Michael Manley, owner of Prudential Properties in the Beach, ran for head of the Toronto Real Estate Board (TREB) promising to stamp out the practice.

Maureen O'Neill, who refused to acknowledge the practice even existed, eventually won the election. But within months she had to reverse her stand when the Toronto Star reported proof unethical bidding practices have indeed been occurring.

Several realtors also told us about phantom bids, saying that they're not only unfair to buyers, but they're a threat to the whole industry's reputation.

O'Neill has since established a blue-ribbon task force of industry insiders to investigate ways to put an end to unethical practices, likely by implementing a system to formally register bids.

"I have hand-picked these people and they are the best in the industry. They have no bias," O'Neill said recently.

Manley said he's happy the industry's professional association is finally looking at some form of offer registration system. "What TREB is doing is exactly what they should be doing," he said.

Source: As reported by Gail Swainson in the Toronto Star:

December 30, 2007 in Toronto Real Estate Board | Permalink | Comments (1) | TrackBack

U.S. home sales plunge

Worsening house market slump is heightening fear that the American economy may be thrust into recession

The United States housing market plunged deeper into despair last month, with sales of new homes plummeting to the lowest level in more than 12 years. The slump worsened more than most analysts expected, heightening fears that the country may be thrust into a recession.

New-home sales tumbled 9 per cent in November from October to an annual sales pace of 647,000, the commerce department said yesterday. That was the slowest sales pace since April 1995.

"It was ugly," said Richard Yamarone, an economist at Argus Research. "It is the one sector of the economy that doesn't show any signs of life. It doesn't look like there is any resuscitation in store for housing over the next year."

Over the year and countrywide, new-home sales tumbled 34.4 per cent, the biggest annual slide since early 1991 and stark evidence of the painful collapse in the once-high-flying housing market.

"I think you can classify what we are seeing in the housing market as a crash," said Mark Zandi, chief economist at Moody's Economy.com. "Sales and home prices are in a free fall. The downturn is intensifying."

The median sales price of a new home – half sold for more, half for less – fell to $239,100 (U.S.) in November, down 0.4 per cent from a year earlier. Would-be home buyers have found it more difficult to secure financing, especially for "jumbo" mortgages exceeding $417,000.

Unsold homes have piled up, which will force builders to cut back even more on construction and look for ways to sweeten the pot to lure prospective buyers. The housing market's plunge has followed five years of record-breaking activity from 2001 through 2005.

December 29, 2007 in World View [of real estate] | Permalink | Comments (2) | TrackBack

GST Rate Reductions re: New Housing

On October 30, 2007, the Government of Canada announced in its Economic Statement that it proposes to reduce the GST rate by one percentage point from 6% to 5%, effective January 1, 2008. To facilitate the transition to the lower rate, the Economic Statement also proposes transitional rules for determining the GST/HST rates applicable to transactions that straddle the January 1, 2008 implementation date.

This info sheet reflects the proposed amendments to the Excise Tax Act. Any commentary in this publication should not be taken as a statement by the Canada Revenue Agency (CRA) that these amendments will be enacted in their current form.

See Info Sheet [PDF*]

December 28, 2007 in Toronto Real Estate Taxes | Permalink | Comments (0) | TrackBack

Office vacancy to drop in 2008

Strong demand and a lack of supply drives markets forward

The national office vacancy rate will drop from the current 6.2 percent by the fourth quarter of 2008 to 5.6 percent as major urban centres continue to see the amount of available space decline.

Cushman & Wakefield LePage’s Outlook ’08: Annual Market Review found that, of the five surveyed markets, only Calgary will see a rise in office vacancy rates in the coming year. Vacancies in Vancouver, Toronto, Ottawa and Montreal will fall.

Toronto, which represents over 40 percent of the total Canadian office market, will have projected vacancies in the central office market reach a tight 3.8 percent vacancy in late 2008, down from 6.2 percent at the end of 2006.

See details »

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

Realtysellers vs. TREB

An insightful and balanced analysis of the dispute between Realtysellers and the Toronto Real Estate Board appears in an article on the Realosophy website. It is refreshing to see that there are some people in the real estate brokerage business who "get it"!

See the full article »

December 27, 2007 in Legal Considerations | Permalink | Comments (0) | TrackBack

Can you afford it?

A worldwide survey says forget about Vancouver but consider Regina ... or Buffalo?

With house prices soaring by 10 per cent in the past year, many Canadians are struggling to find an affordable home. But take a step back, and Canada's situation doesn't look so bad, as Jason Kirby reports in the current issue of Maclean's. In fact, when compared to some of the world's other major centres, Canadian cities still offer some of the best housing deals anywhere.

Each year, Demographia—a U.S.-based real estate research firm—reports on housing affordability in 159 major markets around the world. Their most recent report found that Canada had some of the most affordable regions of all the nations surveyed(which included the U.S., the U.K., Ireland, Australia and New Zealand). In fact, Regina, is listed as one of the three most affordable markets(Fort Wayne, IN, and Youngstown, OH, were the others).

And while both Vancouver and Victoria ranked among the 25 least-affordable markets in the survey, earning the description of "severely unaffordable," they were the only Canadian cities represented in that category—well below the number of U.S. cities(14), as well as the U.K.(5)and Australia(4).

Calgary and Toronto, meanwhile, were described as "seriously unaffordable," while Montreal, St. Catharines, Edmonton, Hamilton and Halifax are "moderately unaffordable." But good news - several Canadian cities were classified "affordable," including Ottawa, Saskatoon, Quebec, Winnipeg, and of course, Regina.

December 26, 2007 in Buying Toronto Real Estate | Permalink | Comments (3) | TrackBack

Christmas Cookies

Here's a great recipe for cookies ... guaranteed to please.

Ingredients:
Instructions:

- Sample the Crown Royal to check quality.

- Take a large bowl, check the Crown Royal again and to be sure it is of the highest quality, pour one level cup and drink.

- Turn on the electric mixer. Beat cup of butter in a large fluffy bowl.

- Add one teaspoon of sugar. Beat again.

- At this point it's best to ensure that the Crown Royal is still OK ... sample another cup ... just in case.

- Turn off the mixer thingy.

- Break 2 leggs and add to the bowl and chuck in the cup of dried fruit.

- Pick the frigging fruit off floor.

- Mix on the turner.

- If the fried druit gets stuck in the beaterers just pry it loose with dewscriver.

- Sample the Crown Royal to check for tonsisticity.

- Next, sift two cups of salt ... or ... who giveshz a sheet.

- Check the Crown Royal.

- Add a spoon of ... or somefink ... whatever youzh can find.

- Greash the oven.

- Turn the cake tin 360 degrees and don't fall over.

- Don't forget to beat off the turner.

- Make sure to put the stove in the dishwasher.

Cherry Mistmas

December 24, 2007 in Home Maintenance Matters | Permalink | Comments (0) | TrackBack

Condos outselling houses

High prices propel sale of condos above 50% of total

A single-family detached house has long been the ideal dream for Canadian homebuyers. But, in case you couldn't already tell by all the construction cranes dotting Toronto's ever more crowded skyline, 2007 has become the year of the condo.

New condominium sales in the Toronto area officially passed the 50 per cent mark for the first time, outselling new low-rise homes, according to November figures to be released today by the Building Industry and Land Development Association.

"This is really unheard of. Low-rise homes were always the preferred choice, but it shows you how much the market has changed," Stephen Dupuis, chief executive of the association, said in an interview.

The average new condo price is now $347,207, up 8.6 per cent from last November. Low-rise homes saw a price increase of 6.8% to $429,673, according to a copy of the report obtained by the Toronto Star »

December 21, 2007 in Toronto Real Estate Update | Permalink | Comments (2) | TrackBack

Toronto Real Estate Board:

Two New Records Set in First Two Weeks of December

The Greater Toronto resale home market reached two new heights during the first half of this month Toronto Real Estate Board President Maureen O'Neill announced today. "The 2,868 transactions recorded during the first two weeks of December have made this the first year that sales have exceeded 90,000," said Ms. O'Neill.

This activity also represents a 3 per cent increase over the 2,783 sales recorded during the first two weeks of December 2006.

This year's record activity has been matched by record prices. "The average price is now $404,707, which is the first time it has exceeded $400,000," said Ms. O'Neill.

The current average price has increased 3 per cent since last month and 19 per cent compared to the same timeframe a year ago.

In the Danforth area (E03) transactions are up 24 per cent compared to mid-December 2006, as a result of strong semi-detached sales.

New Toronto transactions (W06) are up 43 per cent compared to the same timeframe a year ago, as a result of strong condominium apartment sales.

Condominium apartment transactions Downtown (C01) also pushed overall sales in that area up 28 per cent compared to the first half of December 2006.

In North York (C14) detached home transactions led to an overall sales increase of 34 per cent in the area compared to mid-December 2006.

"The two new precedents set in the last two weeks is certainly positive news, said Ms. O'Neill. It's shaping up to be a busy holiday season for homebuyers and sellers alike."

December 20, 2007 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

2008 Real Estate Forecast

Canadian home prices to rise by 3.5% in 2008: Royal LePage

Real estate brokerage Royal LePage is forecasting "steady, yet moderate growth" in the Canadian residential property market in 2008 after the industry's busiest year ever in 2007. Royal LePage predicts that house prices nationally will rise by 3.5 per cent to an average of $317,288 next year. The number of transactions is forecast to slip by four per cent to just over half a million - still above the number of sales in any year before the record pace of 2007.

Coinciding with the Royal LePage report came data from the Canadian Real Estate Association showing Multiple Listing Service home resales broke all previous annual records by the end of November.

MLS activity in major markets totalled 345,577 units in the first 11 months of this year, 2.7 per cent more than the previous full-year record of 336,646 in 2005.

Royal LePage Real Estate Services president Phil Soper said Canada's housing market should continue to thrive next year on strong economic fundamentals including high employment, solid consumer confidence, modest inflation and a relatively low cost of borrowing.

Soper noted that Canada is in one of the longest housing market expansions in history, but in 2008 eroding affordability is likely to reduce demand, "allowing the market to move toward balanced conditions, with lower levels of price appreciation, and fewer homes trading hands."

Royal LePage, a unit of the Brookfield Real Estate Services Fund (TSX:BRE.UN), predicts next years's biggest percentage price increases will be in the most affordable large urban markets - Regina and Winnipeg.

In Calgary and Edmonton "the excessively fast run-up of home values in 2006 and the first half of 2007 priced people out of the market," and increases are expected to be more moderate in 2008.

Ontario and Quebec property markets "are anticipated to maintain their relative strength and vibrancy throughout next year, weathering stormy financial markets and adjusting well to the high value of the Canadian dollar."

The Multiple Listing Service data showed little slackening in the pace of home-buying last month, though activity was off the frenetic peak of earlier in the year. It was the busiest November on record, up 7.6 per cent from a year ago and up 3.2 per cent from October on a seasonally adjusted basis.

"The monthly rise in sales activity caused the resale housing market to tighten in November compared to the previous month," the real estate association commented.

"Activity is at or just below record levels in Regina, Winnipeg and Newfoundland and Labrador, making them the tightest major markets in November. Edmonton, Calgary and Windsor remained the most balanced major markets."

November's average price for resale homes purchased through the MLS system was up 11.6 per cent from a year earlier at $332,807.

CREA economist Gregory Klump said a seller's marker continues in most cities, and there is no sign in Canada of the mortgage woes that have afflicted the American housing sector.

"Our association has not received any reports from realtors that creditworthy homebuyers are having difficulty getting mortgage financing as a result of the subprime meltdown," Klump said.

December 19, 2007 in Canadian Market Forecast | Permalink | Comments (2) | TrackBack

Canadian MLS® Statisitics

New annual record for MLS® home sales in 2007

With one month still to go in the year, MLS® resale housing activity in Canada's major markets broke all previous annual records by the end of November 2007, according to statistics released by The Canadian Real Estate Association (CREA).

Activity in Canada's major markets for the year-to-date in November 2007 totaled 345,577 units, up 2.7 per cent from the previous annual record of 336,646 sales set in 2005. Transactions in the first eleven months of 2007 have exceeded last year's annual total in almost all major markets.

Seasonally adjusted MLS® sales activity rebounded by 3.2 percent month-over-month to 29,992 units in November 2007 – the seventh highest monthly level on record. The monthly increase reflects a rise in activity in Vancouver, Toronto, Edmonton, Calgary, and Saskatoon.

Seasonally adjusted transactions also set a new monthly record in Newfoundland and Labrador in November. Activity reached the second highest monthly level ever in Saskatoon and Regina, and reached the third highest level in Winnipeg and Toronto.

Actual (unadjusted) MLS® sales activity was up 7.6 per cent in November from the same month last year. This was the highest number of transactions ever for the month of November.

Seasonally adjusted n ew MLS® residential listings edged up 0.4 per cent from October levels to reach 49,720 units – the second highest monthly level ever. New listings rose strongly in Toronto and posted month-over-month gains in Vancouver, Hamilton-Burlington, Calgary and Victoria. This offset fewer new resale housing listings in Edmonton, Winnipeg, London & St. Thomas, Newfoundland and Labrador, Saint John, Montreal and Quebec City.

The monthly rise in sales activity caused the resale housing market to tighten in November compared to the previous month. Activity is at or just below record levels in Regina, Winnipeg and Newfoundland and Labrador, making them the tightest major markets in November. Edmonton, Calgary and Windsor remained the most balanced major markets.

The major market MLS® residential average price rose 11.6 per cent year-over-year to $332,807 in November. This was the seventh consecutive month in which the increase in average price has exceeded ten per cent, and the largest increase since July. Average price surpassed all previous monthly records in Victoria, Kitchener-Waterloo, Montreal and Quebec City.

“Sales activity continues to run strong, even if it is off its peak set earlier this year in nearly all major markets,” said CREA Chief Economist Gregory Klump. “Demand remains strong due to continuing job and income growth, and upbeat consumer confidence. That is helping retain a seller's market in most major markets.”

“The number of new listings were virtually the same in November as October, so it was an increase in units sold through MLS® that meant a tighter market,” Klump added. The biggest single market sales increase in November was reported in eastern Newfoundland, including St. John's, where the number of MLS® units sold jumped 68 per cent compared to October. “It appears a series of announcements about the east coast oil industry has fueled consumer confidence and home buying sentiment in Newfoundland.”

The November MLS® statistics also show the Canadian housing market continues on a different track than the U.S. re-sale housing market. “Our association has not received any reports from REALTORS® that creditworthy homebuyers are having difficulty getting mortgage financing as a result of the sub-prime meltdown. Recent interest rate cuts and the availability of financing will buoy housing demand and economic activity in 2008,” CREA President Ann Bosley said.

“We also expect that financial market uncertainty stemming from the sub-prime mortgage lending meltdown in the U.S. will put the pressure on Canadian interest rates from rising in 2008,” Bosley added.

December 17, 2007 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

Real Estate Market Predictions

Canada's house prices forecast to rise by 3.5 per cent in 2008 but activity is expected to moderate

After experiencing an exceptional year characterized by strong average house price appreciation and record breaking unit sales, the momentum from 2007 is anticipated to carry over and position Canada's real estate market for steady, yet moderate growth in 2008, according to the Royal LePage 2008 Market Survey Forecast.

Nationally, average house prices are forecast to rise by 3.5 per cent to $317,288 in 2008, while transactions are projected to fall slightly from this year's record high unit sales to 500,927 (-4.0 %) unit sales in 2008. Despite the year-over-year reduction in sales, the number of homes selling in 2008 is expected to remain higher than in all years prior to 2007.

"Canada's housing market in 2008 should continue to thrive on a balanced diet of strong economic fundamentals, including high levels of employment, resilient consumer confidence, modest levels of inflation and the relatively low cost of borrowing money," said Phil Soper, president and chief executive of Royal LePage Real Estate Services. "Canada is currently enjoying one of the longest housing market expansions in history; however, as we move into 2008 it is anticipated that slowly eroding affordability will cause demand to ease, allowing the market to move toward balanced conditions, with lower levels of price appreciation, and fewer homes trading hands."

With the most affordable major market homes in Canada, residents of Regina and Winnipeg are forecast to drive the greatest increases in house prices in 2008, as job opportunities and in-migration continue to soar in each city. While Calgary and Edmonton will continue to boast healthy economies and high levels of home sale activity, the excessively fast run-up of home values in 2006 and the first half of 2007 priced people out of the market, causing inventory levels to rise late in the year. Alberta home price increases will be much more moderate in 2008 as the regional market continues to adjust to the new house value reality.

With the country's highest home prices, Vancouver's steadfast market will continue to expand on the back of a strong provincial economy. As the city readies itself for the 2010 Olympic Games, there will be an abundance of new jobs created.

Ontario and Quebec markets are anticipated to maintain their relative strength and vibrancy throughout next year, weathering stormy financial markets and adjusting well to the high value of the Canadian dollar. The services based industries that have become the backbone of the Toronto and Montreal economies have tolerated the rise of Canada's dollar to parity very well, despite increasingly price competitive offering from overseas markets.

In Atlantic Canada, a slight depletion of inventory coupled with high immigration levels will see the housing market growing at a strong and steady pace - Halifax is expected to have higher than national average growth in 2008.

The frenzied pace of price inflation that has characterized the real estate market over the past two years in the resource rich west were unsustainable and should ease substantially in 2008. In Central Canada, price increases peaked in late 2005, and have been moderating since.

From coast-to-coast, the homebuyer demographic is anticipated to swell with first-time purchasers, as many flock to take advantage of recently reduced lending rates, longer amortization periods and the resultant manageable mortgage payments.

Added Soper: "The year ahead presents opportunities for those people who have shied away from the frenetic real estate market of the past few years, with its bidding wars and unconditional offers; while prices should continue to rise, they are expected to do so at a more reasonable pace. Canada's economy is strong, and the desire for home ownership remains a vibrant and attainable goal - real estate remains a solid long term investment."

Highlight of 2008 Trends

Strength of the Canadian Dollar

The position of the Canadian dollar hovering at parity will continue to bolster the country's high consumer confidence, and is anticipated to translate into continued growth in consumer spending. The negative impact of the high dollar on the country's manufacturing sector for export trade will be mostly felt in Southern Ontario and Quebec; however, both regions are demonstrating considerable resiliency, with a concerted effort by both governments and industry underway to improve productivity and improve international competitiveness.

U.S. Economy

In sharp contrast to the weakening U.S. economy and deteriorating housing market, Canada's economy and housing market continues to demonstrate staying power. Canadian mortgage products are markedly different from those offered in the U.S., and the sub-prime market makes up a significantly smaller portion of the overall Canadian mortgage market. It is unlikely that the residential real estate industry in Canada will have to endure the kind of sharp correction underway south of the border.

Employment

Employment rates across the country are expected to continue at the current very high levels, driven by the robust energy and general natural resource sectors specifically, and a very healthy services economy in general. In the year ahead, job market growth is anticipated to continue, especially in Regina, Winnipeg and Halifax.

Interest Rates

The move by the Bank of Canada to reduce its overnight target-lending rate by a quarter of a percent in December 2007 will bode well for first-time buyers planning to enter the market in 2008. The relatively low current interest rates, and the possibility that rates could fall even lower in response to moderating inflation and lower rates in the U.S., will continue to attract new buyers to the housing market.

Summary

Solid economic fundamentals should allow Canada's residential real estate market to chart its own course and maintain its buoyancy in 2008.

December 17, 2007 in Canadian Market Forecast | Permalink | Comments (1) | TrackBack

Honestly seeking an agent ...

Here are some thoughts on choosing — or not — a real estate agent.

1. Identify an Agent who is first of all competent.

Before you even contact the agent, see what you can learn about your prospective Realtor. Realtors like to talk about about you as a "prospect". You might as well talk about about them as as "prospective agents". Create a list of half a dozen Realtors, and then filter though that list. Can you get a good referral from a trusted friend or business associate? Add that name to your list. Check out the Internet web sites to see who is doing what in the area you are interested in. Be careful not to assume that a "Top Producer" can do the best job for you. Maybe. Maybe not. We're looking for competence here, not volume and certainly not hype. Check out the Realtors resume, and find out what has he been doing all these years that will contribute to doing an extraordinary job for you. Frankly, someone who has been an auto-worker for 25 years and then gets a real estate license probably does not meet the competency standard. That person could do a great job for you on a single family purchase or sale, but you can still end up with some very serious and expensive battles because an offer was not drafted precisely. We never get away from the challenge that all Realtors have: when a Realtor drafts a contract, they are held to the standard of a lawyer.

Look at the prospective Realtor's history. Does she/he have experience in anything related to real estate that can be helpful ? Was he a builder, contractor, plumber, inspector, loan officer or property manager? If not, it's not the end of the world, if she has a lot of experience that can substitute. Remember, the goal is to find a Realtor who knows a lot more than you do about buying real estate, and who can keep you out of trouble in the process. You want someone you feel is competent and can do a great job for you.

2. Filter the competent ones with another qualification — honesty.

Some may think I'm kidding when I say find an honest Realtor. I'm not. Honesty in this context isn't the simple childhood concept of not telling a lie. Today, our culture has extended the boundary of subtle misrepresentations far into dishonest territory, but it's not considered dishonest by most standards. What isn't said is often as much of a misrepresentation as what is said. So be on guard. Make sure you have enough discernment to recognize honesty, or lack thereof. And, by the way, there are a some less-than-honest agents out there.

3. Hire the Agent because the Agent meets your criteria, not just because the Agent works at a large franchise.

When you hire a Realtor, you hire the person, not some "branded" franchise or corporate atmosphere. It's your Realtor who does the work, and if she can't do it well, the rest of the Brokerage is not going to do it for her. Furthermore, if he delegates important responsibilities to a non-licensed person or a less experienced agent, what good did the image of the franchise accomplish for you. Maybe the opposite of personal attention. Ultimately, whether you get outstanding professional service depends on your Realtor, not the rest of the organization.

4. Know what to expect from your Agent, and what he/she expects of you.

If you have made a list of half a dozen prospective Realtors, filter through that list with further research, much of which can be done right on the Internet. You should personally interview the final contestants in person and in their office during the week day.

Once you have decided on a Realtor, tell him exactly what you expect of him, and ask him if he could do those things for you. Then ask your Realtor something virtually no one asks their Realtor in the beginning, "What exactly do you expect of me?"

Conclusion

If you do these things, you minimize the chances of misunderstandings, you increase the probability of a successful relationship and a successful real estate transaction, and that means more money in your pocket and less stress. And as Martha would say, "That's a good thing."

December 16, 2007 in Buying Toronto Real Estate | Permalink | Comments (3) | TrackBack

Land Transfer Tax Rebates

Ontario Program (LTT)

First-time home buyers who purchase a new or resale home will receive a rebate of the Provincial Land Transfer Tax (LTT). All other buyers will continue to pay the full applicable tax. The maximum Provincial LTT rebate is $2,000.

Details

The 1996 Ontario Budget announced a special one-year provision to the Provincial LTT that was renewed every year and is now a permanent program.

FIRST-TIME BUYERS who purchase a new home will receive a rebate of the Provincial LTT. All other buyers will continue to pay the full applicable tax.

The maximum rebate is $2000. If an individual owns less than 100% interest in the newlybuilt home, the amount of the rebate would be reduced and calculated according to the amount of interest in the home.

A rebate of $2,000 is equivalent to the Provincial LTT payable on a purchase price of $227,500 (net of GST).

Only individuals who are at least 18 years of age, have not (or spouse) previously owned an interest in a home anywhere qualify for the rebate.

Individuals who have received an Ontario Home Ownership Savings Plan (OHOSP) based refund of the Provincial LTT do not qualify.

A real estate transfer tax is assessed on real property when ownership of the property is transferred from one party to another. The Provincial Land Transfer Tax is a percentage of the value of the property based on a graduated scale:

For more information call the Ontario Finance Ministry at 1-800-263-7965.

Toronto Program (TLTT)

First-time home buyers who purchase a re-sale or newly constructed home will receive a rebate of the Toronto Land Transfer Tax (TLTT).

Details

The City of Toronto provides a rebate of the TLTT to first-time home buyers of re-sale or newly constructed homes.

The maximum Toronto rebate is $3,725 (equivalent to the TLTT payable on a $400,000 home).

According to the City of Toronto, eligibility rules for the TLTT first-time buyer rebate will mirror provincial rules, as follows: The purchaser must be at least 18 years of age.

The purchaser must occupy the home as his or her principal residence no later than nine months after the date of the conveyance or disposition.

The purchaser cannot have previously owned a home, or had any ownership interest in a home, anywhere in the world, at any time.

If the purchaser has a spouse, the spouse cannot have owned a home, or had any ownership interest in a home, anywhere in the world while he or she was the purchaser's spouse. If this is the case, NO refund is available to either spouse. Note: If a purchaser's spouse owned an interest in a home BEFORE becoming the purchaser's spouse, but not while the purchaser's spouse, the purchaser may be eligible for some rebate.

The tax is a percentage of value of the property based on a graduated scale:

For additional information, contact the City of Toronto at 416-338-0338

Although we believe the above information is accurate it is not intended to be legal or financial advice. We accept no responsibility for any loss arising from any use or reliance on the information contained herein.

December 16, 2007 in Toronto Real Estate Taxes | Permalink | Comments (2) | TrackBack

Who pays real estate commissions?

A good question that's hard to answer. First, to determine who actually pays the real estate commissions -- whether it's sellers or buyers or both -- we must first take a look at how real estate agents are paid and how they share cooperating commissions under the MLS system.

It usually works like this:

Listing Agents' Fees

The most common type of listing agreement between sellers and their agent gives that agent's brokerage the right to exclusively market the home. In return for bringing a buyer to the table, the seller agrees to pay a commission to the broker. Typically, this fee is represented as a percentage of the sales price and is shared between the listing brokerage and the brokerage who brings the buyer.

Co-operating Splits

Divisions of fees among brokerages is not always equal. For example, a seller could sign a listing agreement for 6% that stipulates the listing broker will receive 2% and the selling broker will receive 4%. So it's not always a 50/50 split. In a buyer's market particularly, sellers might want to consider asking the brokerage to give a larger percentage to the buyer's agent. In a seller's market, the buyer's broker might receive less. There is no set formula.

Buyer Representation

Under a Buyer Representation arrangement, the named brokerage and agent represent the buyer. But fee paid to the brokerage is, most commonly, paid by the seller. Some buyer representation agreements contain clauses that will compensate the brokerage for the fee it is due less the amount paid by the seller. For example, a cooperating listing might offer to pay a broker 2.5% of the sales price, whereas the brokerage operates at fees of 3%. The difference of .5% could be paid by the buyer if the broker chooses not to waive that amount.

So who Really Pays the Commission?

It can be argued, rightfully so, that the buyer always pays the commission. Why? Because it's typically part of the sales price. If the seller did not sign an agreement to pay a commission, the sales price might have been lowered. And therein lies the appeal of buying homes through unrepresented sellers because, given the same logic, those prices should reflect a net sales price without a commission. But those sellers haven't quite figured this out yet which causes potential buyers of those listings to be consistently disappointed.

To help alleviate much of this confusion, don't be astonished if over the next few years sellers and buyers each retain their own representation and pay separately for said representation.

December 15, 2007 in Selling Toronto Real Estate | Permalink | Comments (4) | TrackBack

Condominiums are clicking

Double-digit sales gains reported in most major markets

After more than three decades of slow but steady growth, the condominium concept has finally clicked with Canadian homeowners. The lifestyle has proven to be a solid investment in housing markets across the country, chalking up some of the most impressive gains in residential real estate in 2007, according to the RE/MAX Condominium Report released today.

Their universal appeal is substantiated, with every market reporting increased momentum in condominium sales volume over 2006 levels. In fact, 80 per cent of markets surveyed reported doubledigit gains in sales year-over-year, with 40 per cent reporting increases over 20 per cent. The greatest growth was experienced in Canada’s small to mid-sized markets. Leading the country, in terms of percentage increase in sales so far this year, are Regina (+57%), St. John’s (+54%), and Saskatoon (+33%).

“Deteriorating affordability levels in major Canadian centres have led to the resurrection of the condominium lifestyle in recent years,” says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. “Condominiums are clearly the answer to the skyrocketing cost of land and shelter that has all but eradicated the dream of homeownership for many first-time buyers.”

While price appreciation on freehold properties, in particular, was the primary factor in the upswing, the strong desire among baby boomers to lead an active, carefree lifestyle has also driven the concept to unprecedented popularity. The RE/MAX Condominium Report identified Greater Vancouver as the strongest market in the country – where close to 60 per cent of all residential sales now involve a condominium. Condominium presence is also on the rise in centres such as Toronto, Edmonton, Calgary, Regina, Ottawa, and Hamilton-Burlington, where condos now represent 20 to 30 per cent of all MLS sales.

“The white picket fence, sprawling green lawn and tidy urban bungalow has become an unattainable ideal for many first-time buyers—especially in the West,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “By necessity, condominiums have become the only practical means to homeownership for a growing segment of the population. Today’s entry-level purchasers aspire to manageable mortgage payments, sunset city views, and the non-stop action and amenities of central core living, all packed into 600 to 800 sq. ft. The momentum of the market in recent decades has redefined the home buying process.”

Condominium values were also up from coast-to-coast in 2007, with all major markets reporting an increase in average price. Thirty-three per cent of cities surveyed reported double-digit price appreciation. The most dramatic hikes were seen in Western Canada’s red-hot housing markets, led by Saskatoon (+24%), Calgary (+22%), Edmonton (+19%), Kelowna (+16 % for town homes, +12% for apartments), Vancouver (+14 % for town homes, +11% for apartments), and Victoria (+9% for town homes, +12% for apartments).

At the top end of the market, condominium ownership has been equated with lifestyle. Throughout 2007, aging baby boomers fuelled demand for luxury condominium units. Upper-end activity was reported to be on the rise in all markets examined, with the greatest appreciation occurring in Edmonton (+154 %), Greater Toronto (+98 %), Victoria (+85 %), Winnipeg (+58%), Vancouver (+49%) and Kitchener- Waterloo (+39%).

The maintenance-free factor, the ability to travel and to enjoy the best the city has to offer—from restaurants to recreation—were cited in overall condominium appeal. “In years past, there seemed to be a ceiling in terms of what buyers were willing to pay for this type of product,” says Polzler. “Widespread acceptance has seen that philosophy tossed out the window. In the upper-end especially, buyers have demonstrated a willingness to set new benchmarks, and in some cases, are spending more than what a detached home might cost. Multiple offers, once unheard of, have become a reality in some centres.”

New benchmarks for the most expensive apartment-style condominium units ever sold through MLS have been reported in several cities in 2007, including Vancouver ($18 million), Calgary ($3.7 million), Edmonton ($2.3 million), Winnipeg ($1.25 million), and Kitchener-Waterloo ($670,000). Given solid demand through all price ranges, it comes as no surprise that investors have been very active in the majority of markets surveyed, hoping to snap up a piece of the pie while demand remains at peak levels. Yet, with a growing number looking for a quick return on investment, swelling inventory levels have become a serious concern in several markets, most notably in Calgary and Edmonton, and to a much lesser extent, Kelowna.

“The impact of speculation, especially in Canada’s largest condominium markets, has yet to be determined, but concerns for the future are relevant,” says Ash. “In downtown Vancouver, an estimated 50 per cent of sales activity is attributed to investors, whereas as much as 60-85 per cent of new condominiums sales in Toronto’s downtown core reportedly involved investors in 2007. This is a major factor that could influence prices in years to come.” For now, a number of market fundamentals point to increased growth in sales, prices and demand well into 2008. These include vibrant economies, Canada’s aging population, rising prices, and higher levels of immigration, to name a few.

See the full report »

December 14, 2007 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

Homebuyers' get tax break

Finance Minister Dwight Duncan has an early Christmas present for first-time homebuyers – a tax break of up to $2,000. In his fall economic statement yesterday, Duncan also came to the aid of struggling manufacturers, laid-off workers, and transit riders with $3 billion in tax cuts and new spending.

Expanding this Land Transfer Tax refund is an important part of our government's commitment to helping Ontarians buying their first home," Duncan said.

Effective midnight tonight, first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.

The expanded Land Transfer Tax Refund Program for First-time Homebuyers is part of a package of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review that would provide $1.4 billion in provincial tax relief for business and people over three years.

Von Palmer, of the Toronto Real Estate Board, wants the "backbreaking tax" scrapped entirely but said the rebate, which is available to all first-time buyers, is a start.

In Toronto, someone buying a $420,000 home – the average price in the city – would pay $4,875 in provincial land transfer taxes, Palmer said. Yesterday's rebate would knock that down by $2,000 – the maximum.

For more information visit: http://www.gov.on.ca

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

First-Time Home Buyer Survey

Despite year after year of escalating house prices across Canada, first-timer buyers are successfully financing and buying homes that meet their needs, according to a survey by CENTURY 21 Canada brokers. Don Lawby, president of the real estste franchise, says that buyers have maintained their presence in today's housing market by combining innovative buying and financing strategies with practical compromises.

"First-time buyers often enter the market with an unrealistic list of expectations, but soon find they need to decide on a smaller house or accept a longer commute time," says Lawby.

Once they choose a home, first-time buyers must tailor mortgage terms to meet their circumstances and lifestyles. "Savvy first-time buyers are asking mortgage brokers to sort through the dozens of alternatives available from banks and other lending institutions."

"More and more first-timers are gifted with a significant down payment from their boomer parents as an advance on their inheritance," says Lawby. "In other cases, parents are providing no or low interest loans to help their kids get into the market."

According to Statistics Canada data from 1996 to 2006, home ownership among Canadians is continuing to increase year after year. The number of homes owned has increased from 6.8 million to 8.5 million, or 24%, over these 10 years, while the population of the country has increased from 28.8 million to 31.6 million, or 10%.

Over the last 10 years, the rate of home ownership increased most in Alberta (38% compared with a population increase of 22%), and Ontario (28% compared with a population increase of 13%). The lowest increase of home ownership occurred in Manitoba (11% increase compared with a population increase of 3%) and Newfoundland (8% increase compared with population decrease of 8%).

StatsCan data also shows a national trend towards the purchase of condos, townhouses and other multi-family dwellings - and away from detached single-family homes. In 1996, four in five (80%) Canadian homeowners owned detached single-family houses compared to three in four (74%) in 2006.

The CENTURY 21 national house price survey of typical first-time homes included 128 neighbourhoods within 55 cities and towns across Canada.

The most expensive cities for first-time buyers based on price per square foot are Vancouver, where a 412-square-foot condo in the downtown is $281,000 or $682 per square foot; the Toronto suburb of Thornhill, where an 800-square-foot bungalow on a 3,500-square-foot lot in East York is $480,000, or $600 per square foot; and downtown Toronto, where a 340-square-foot condo in trendy Liberty Village is $200,000 or $588 per square foot.

The least expensive cities for first-time buyers based on price per square foot are St. John's (2,150-square-foot two-storey bungalow, $170,000 or $79 per square foot), Halifax (1,408-square-foot semi-detached house, $129,900 or $92 per square foot), Windsor (850-square-foot 1 1/2-storey house, $91,000 or $107 per square foot), London (1,000-square-foot townhouse, $120,000 or $120 per square foot), and Sudbury (969-square-foot 1 1/2-storey house, $140,000 or $144 per square foot).

The survey also found that the most expensive smaller centres for first-time buyers based on price per square foot are Fort McMurray, Alberta, where the oil sands boom continues (1,120-square-foot bungalow, $565,500 or $505 per square foot), and Canmore, Alberta, in the majestic Rockies just east of Banff National Park (1,100-square-foot townhouse, $445,000 or $405 per square foot).

The most affordable prices in smaller centres for first-time buyers based on price per square foot are in Fort Erie, Ontario, 30 kilometres south of Niagara Falls on Lake Erie (1,157-square-foot 1 1/2-storey house, $96,000, or $83 per square foot), Summerside, Prince Edward Island (1,083-square-foot 1 1/2-storey house, $89,900, or $83 per square foot), and Yorkton, Saskatchewan, 190 kilometres east of Regina (896-square-foot bungalow, $83,000, or $93 per square foot).

Size verses Commute Time

In larger centres, first-timers usually choose small condos and townhouses near their jobs or in attractive neighbourhoods. Detached houses or large townhouses in these neighbourhoods are priced out of their range. In smaller centres, first-timers often choose older detached homes in attractive neighbourhoods and plan to upgrade the house or yard.

Although the number of homeowners has increased in the past decade, the number of Canadians owning detached residences has fallen. Statistics Canada data shows that in 1996, 80% of Canadian homeowners owned detached single-family houses compared to 74% in 2006.

Alternative Financing

Lawby, who is also president of Centum Financial Group Inc., a national network of independently owned and operated mortgage broker firms, says the mortgage landscape is competitive and complicated. More and more first-timers are choosing mortgage brokers to help them sort through the terms offered by banks and other lending institutions.

Interest rates are a major component of mortgage terms. The Bank of Canada raised rates 1% from December 2006 to December 2007, and then cut rates a quarter point December 4, 2007.

In addition to interest rates, mortgage payments are affected by the size of the down payments and the length of the amortization period. Higher down payments and longer amortization periods reduce the monthly payments. First-time buyers are usually advised to lock in an interest rate for five years, opting for security instead of choosing riskier floating rates or shorter renewable periods.

Centum Financial Group Inc. says typical terms are 5.99% at a fixed term of five years, a 5% down payment and an amortization period of 25 years. Under these terms, a buyer purchasing a $275,000 home would make a down payment of $13,750 and would make monthly mortgage payments of $1,669.

Optional terms include a zero down payment and an amortization period of 40 years. Under these terms, a first-time buyer purchasing a $275,000 home would make monthly mortgage payments of $1,497.

Summary

Trends: First-time buyers must compromise to conquer record-high housing market

  • Trade-off comes between a smaller home and a longer commute
  • Buyers look to mortgage brokers for financing alternatives
  • Boomer parents helping their children
  • Canadians trending towards condo, townhouse ownership

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

    Competition Bureau recommends:

    Canada's self-regulated professions, which includes real estate brokerage, should re-examine their rules to ensure they serve a public good and do not go too far in restricting competition, a Competition Bureau study says. The Bureau's study, released today, found that rules that limit advertising, set prices for services and restrict who can offer services may go further than necessary to protect the public interest. Further, these rules can lead to higher prices, limit choice and restrict access to the type of information consumers need to make decisions.

    "We understand that regulation plays a legitimate role in protecting consumers and meeting public policy goals," said Sheridan Scott, Commissioner of Competition. "However, not all the regulations we looked at appear necessary, and removing some of these restrictions could benefit consumers and the Canadian economy."

    One of the findings: Consumers generally pay less for services when professionals compete on price. In real estate, Ontario legislation limits price competition. The Bureau recommends clients be able to choose the real estate services they want from a menu of offerings. Specifically, Ontario legislation dictates consumers pay either a flat fee or a percentage of the selling price. The Bureau recommends real estate regulators remove this restriction.

    See more here »

    December 11, 2007 in Real Estate Regulations | Permalink | Comments (0) | TrackBack

    Toronto Commercial Real Estate

    Almost 900,000 Square Feet Leased In November

    Toronto Real Estate Board Members reported another active month, with 895,632 square feet of space leased through the TorontoMLS system, Commercial Council Chair Garry Lander announced today. "This is a nine per cent increase over October's figure of 821,889."

    Industrial space continued to trade within a narrow range in November, averaging $5.63 sfn for all size categories. Commercial/Retail space traded for $14.63 sfn, also within its standard range.

    Sales and Market Highlights

    In November, TREB Members recorded 71 sales on Industrial/Commercial properties, of which 37 were Industrial properties in all size categories these averaged $137.32 per square foot. Which compares to a price of $96.30 per square foot derived from Non-MLS sources.

    See Full Report [in PDF format].

    December 10, 2007 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

    The home buyers' wish list

    Have you ever gone to the grocery store without a shopping list and come home with products that piqued your fancy — a bag of potato chips, perhaps, or a half-gallon of fudge ripple — but no coffee or bread or other item you know you needed? It’s okay; we have too.

    But what’s acceptable in the aisles of the local Loblaws or Sobeys is not such a good idea when you’re spending a hundred thousand dollars or more on a house. That’s why savvy home buyers make lists before they begin looking at specific houses. It’s a great tool for determining what you want, what you need, and what compromises you’re willing to make.

    Your list can take many forms. Some buyers jot down the amenities they need (e.g., type of construction, number of bedrooms, a garage or fenced yard) and the amenities they want (e.g., a large kitchen or master bathroom with jetted tub). Others rank specific amenities along a continuum of desirability. Either way, such lists can go a long way in helping you determine just how important various features really are.

    If you’re buying with a spouse or partner, have them make their own list — and be prepared to compromise on the differences. And if you’re working with a real estate agent, be sure to share your list(s) with them; they can search thousands of listings based on dozens of criteria. Either way, carry your criteria with you and compare how the houses you look at stack up.

    But when everything else is right, it’s funny how you can forget all about something that you thought you absolutely needed.

    If there’s one thing to remember about your list, it’s this: Don’t let your wants blind you to your needs. It’s all too easy to be dazzled by a big deck or master bathroom, for example, and completely miss the dimly lit bedrooms or lack of closet space.

    Focus on what you want and you may overlook a home that fits your needs perfectly; focus on what you need and you may be able to add what you want down the road. (It’s a lot easier to add a deck than relocate a bedroom.)

    Likewise, once you start looking at homes, don’t be surprised if you start looking at your list differently, too. Simply put, no home will meet all your criteria, and compromises are inevitable. Needs turn out to be wants, wants suddenly become needs, and no one but you can determine which is which. Update your list as you go along and you’ll eventually zero in on the amenities that really matter. Yes, it will be a compromise, but it will be one you can live with.

    Other People’s Needs

    Even when you’re buying a home, it’s a good idea to think like a seller. (You probably will be at some point.) To maximize your home’s appeal for future buyers, look for the amenities most other homebuyers say they want or need:

    Now let's get to work on that list ...

    December 10, 2007 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

    Homeownership immigrant priority

    A new study shows immigrants are providing fuel for Canada’s residential real estate boom.

    Just over one half (52%) of new immigrants to Canada have already purchased a home and did so, on average, within three years of arriving in the country, according to a new study released today by Genworth Financial. Genworth's First-Time Homebuyer Monitor documents a strong desire by recent immigrants to own a home of their own, with 91% saying that purchasing a home is either very or somewhat important to them. Reasons included a "good investment," "having children", "needing more space" and "owning gives you a feeling of pride."

    The report is based on the experiences of Canadian immigrants polled in Toronto, Vancouver, Montreal, Calgary and Ottawa-Gatineau who have come to Canada within the last 10 years.

    "This study illustrates how critically important the dream of homeownership is to recent immigrants to Canada," said Peter Vukanovich, president of Genworth Financial Canada. "Lenders, builders and realtors have done a good job serving this market, but we need to provide even more information about the home buying process so those new to Canada understand the options available to them before making this major decision."

    Genworth has added a new Guide specifically designed for immigrant buyers to the homebuyer tools already available at www.genworth.ca. This Guide is available in Farsi, Spanish, Korean, Chinese and Punjabi. It builds on Genworth's existing New To Canada Mortgage Insurance Program, which allows those who've immigrated to Canada within the last 36 months to purchase a home with as little as three per cent down payment.

    The new online Guide was specially designed in consultation with University of Alberta Professor Michael Haan, a leading expert on the immigrant homeownership experience in Canada.

    "The information Genworth is releasing today marks an important step in our understanding of how immigrants experience the housing market in Canada," Professor Haan said. "Some international academic studies have strongly suggested that immigrants place a higher importance (than native-born residents) on homeownership, and that they have additional incentives for ownership, such as demonstrating success and permanency to themselves and others. This new data illustrates that desire among Canadian immigrants."

    The survey highlighted some unique challenges facing immigrants who want to buy a home, including:

    Respondents also shared some concerns common among all homebuyers, including high housing costs (90 per cent), and saving for a downpayment (83 per cent).

    "This new study highlights some of the challenges that remain in the homebuying process for new immigrants. But make no mistake, as this study shows, buying a home is a very important goal for most new immigrants. I see that on a daily basis," said Toronto real estate agent Bill Thom, who specializes in serving clients in Mandarin, Cantonese, Taiwanese, & Toisan.

    The Genworth First-Time Homebuyer's Monitor is based on a telephone survey conducted between September 17 and October 3, 2007 among 418 new immigrants living in the five census metropolitan areas (CMAs) identified by Statistics Canada as having the largest proportion of new immigrants: Toronto, Vancouver, Montreal, Calgary and Ottawa-Gatineau. Results of this survey are accurate to within +/- 4.8%, 19 times out of 20.

    The full First-Time Homebuyer's Monitor is available here »

    December 8, 2007 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

    Real estate market to set record

    This year's transactions to top at least 90,000

    The November housing market was the hottest on record in the GTA, the Toronto Real Estate Board said today and 2007 is poised to set a record year overall, with transactions to top at least 90,000 -- breaking the old record of 84,000 property sale set in 2005.

    The president of the Toronto Real Estate Board, Maureen O'Neil, said the pending land-transfer tax has been driving sales and that Tuesday's rate cut is going to help as well.

    "You're seeing a lot of multiple offer situations in the urban centres. I've been in the business for 27 years and I've never seen anything like the multiple offer situations that we're encountering right now," O'Neil said.

    "You can now get 25-year, 30-year mortgages. You can go in for five per cent down, enabling people who never could afford to buy before," she added.

    Although the land-transfer tax is key, she said it's only part of the story. "I don't know whether we can attribute it entirely to that, probably 30-40 per cent of it is," O'Neil said. "People certainly want to -- those who are sitting on the fence -- in terms of buyers, (they) are wanting to buy and save that tax."

    The average price of a home in the GTA in November was approaching $394,000 thousand, while in Toronto it's over $410,000.

    See Toronto Market Watch ...

    December 6, 2007 in Toronto Real Estate Update | Permalink | Comments (1) | TrackBack

    Toronto Real Estate Board reports:

    On Track for a Record-Breaking Year

    Last month became the best November on record with 7,313 resale home transactions in the Greater Toronto Area, Toronto Real Estate Board President Maureen O’Neill announced today. “I recently reported that 2007 became the best year ever for resale transactions in the Greater Toronto Area with six weeks left to go,” said Ms. O’Neill.

    Even more astonishing though, is the fact that eight of the 11 months so far this year set new monthly records. No other year has shown as many record-breaking monthly performances.

    Sales were up 16 per cent in November compared to the same timeframe last year. At $393,757, November’s average price increased 11 per cent as compared to a year ago and remained in line with the previous month.

    Some of the most significant activity in November took place in the 416 area code.

    Based on strong sales in all housing types, Riverdale (E01) saw a 56 per cent increase in transactions compared to November 2006.

    In the Islington/Kingsway (W08), sales rose 55 per cent over last November, driven primarily by an increase in detached home sales.

    In Willowdale (C07), transactions nearly doubled compared to the same timeframe a year ago, driven by strong condominium apartment and detached home sales.

    In the West part of Markham (N01), strong detached home sales led to an overall increase of 86 per cent compared to November 2006.

    “We expect 2007 to be the first year ever to exceed 90,000 transactions, said Ms O’Neill. These numbers reflect the fact that people who live in the Greater Toronto Area see real estate as an excellent long-term investment.”

    December 5, 2007 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

    Key interest rate lowered to 4.25%

    The Bank of Canada cut its key interest rate by a quarter of a percentage point Tuesday, citing the increased risks to Canada's economy from the weakness south of the border. The cut lowered the bank's overnight lending rate to 4.25 per cent. It's the first cut in the central bank's key rate in more than 3 years.

    The chartered banks quickly lowered their prime lending rates by a quarter of a percentage point to six per cent, effective Wednesday.

    Tuesday's interest rate cut will mean cheaper borrowing costs for Canadians with variable rate mortgages, lines of credit and other loans with floating rates.

    December 4, 2007 in Arranging Mortgage Financing | Permalink | Comments (0) | TrackBack

    Top 10 luxury home must-haves

    Royal LePage reports on the most sought-after and unique accessories for luxury homes.

    Come holiday season, children and adults alike begin creating wish lists - detailed accounts of everything their hearts desire. This season luxury homeowners' wish lists are likely to spare no expense, as the bar just keeps getting higher when it comes to outfitting one's multi-million dollar pad.

    Multiple car garages and lavish walk-in closets are a thing of the past; indoor car washes and walk-in refrigerators are the new rage. As demand for luxury homes continues to grow, so do the wants and needs of those looking to buy.

    "The million dollar home is no longer the exclusive domain of the rich. In fact, many typical middle income Canadian families now own million dollar residences due to soaring property prices," said Elli Davis, sales representative, Royal LePage Real Estate Services Ltd. "Accessorizing the property with the hottest must-haves is a natural extension of living a luxury lifestyle and a way to stand out from the crowd."

    With the help of its Carriage Trade real estate agents, Royal LePage compiled a top 10 list of the most unique and sought-after accessories that Canadian luxury homes are outfitted with.

    1. Elevator car lifts, indoor carwashes - Luxury homeowners spare no expense for their priceless automobiles. Avid car collectors, especially in city homes where property size is limited, install elevator car lifts to expand garage capacity. Keeping a fleet of cars clean is no small feat. In fact, for many it necessitates an on-premise indoor car wash.

    2. Walk-in refrigerators - Professional kitchens akin to what one may find in a five-star restaurant have taken over luxury homes. With growing emphasis placed on home entertaining, walk-in refrigerators and multiple ovens, sinks and dishwashers are the norm for even the novice gourmet.

    3. Spas, gyms and yoga and Pilates studios - The home gym has undergone a makeover and the focus now is on complete health and wellness facilities. Professional-style spas complete with steam rooms and massage rooms overtake the outdated sauna or whirlpool. Yoga and Pilates studios trump stair climbers, treadmills and rowing machines.

    4. Wine cellars and tasting rooms - Grand wine cellars often found in Rosedale, Forest Hill or Westmount residences are the norm for today's connoisseur. Individual cellars for red and white wines, as well as specialized tasting rooms equipped with various sinks and buckets for wine sampling are becoming all the rage.

    5. Concierge services - Concierge services are no longer limited to condominium owners or hotel guests. Today's luxury homeowners utilize companies specializing in concierges. From making dinner reservations to picking up dry cleaning or purchasing opera tickets, concierge services are now a common trend within many luxury neighbourhoods. There are several companies that will provide typical concierge services to homeowners - essentially acting as a live-out butler.

    6. Media rooms - Media rooms that rival the local public theatre are as prevalent in luxury homes as the family room. These windowless rooms typically boast a theatre-size screen, surround sound and rows of plush seats to accommodate large groups.

    7. Wrapping and sewing rooms - Specialized rooms to accommodate particular hobbies or tasks, which are completely outfitted help to keep homeowners organized, are very popular. Dedicated rooms for gift wrapping boast everything from ribbons to paper varieties to bags and bows, while sewing rooms have every type of thread, button and zipper imaginable with tables and machines tailored to the homeowner's needs.

    8. Structured wiring and security - A wireless home is a thing of today. Many luxury residences feature security capabilities (e.g. door locking), entertainment options and light settings that can be accessed remotely throughout a home in various rooms. Some properties are even equipped to remotely control security features in far away cottages or second homes. Another innovative perk for those with deep pockets are security systems that allow property owners to view their home while at work, at the cottage or on holiday.

    9. Home elevators - As homes are increasing in size, and are being built higher to accommodate several floors, home elevators are becoming an accessory of convenience as well as necessity.

    10. Heated driveways, walkways and garages - Manual snow removal is a thing of the past for those in exclusive neighbourhoods that favour heated driveways, walkways and even garages. Built on top of heating coils, snow melts as soon as it touches these warm surfaces.

    What's on your wish list?

    December 4, 2007 in Toronto Real Estate Trends | Permalink | Comments (0) | TrackBack

    Top 10 Real Estate Searches

    Yahoo! Canada today released its list of the most popular search terms of 2007 that included the top real estate related searches.

    The Top 10 Real Estate Searches:

    Canadians typed in MLS more then any other term. Search for real estate terms spiked proving that we still have a booming interest, if not a booming market. True to our conservative values, search for mortgage calculators, rates and brokers were in the top three. Canadians clearly do their research before jumping into the market.

    1. MLS
    2. Real Estate
    3. Mortgage Calculator
    4. House Plans
    5. For sale by owner
    6. Mortgages
    7. Mortgage Rates
    8. Houses for Sale
    9. Mortgage Brokers
    10. Foreclosures

    December 3, 2007 in World View [of real estate] | Permalink | Comments (1) | TrackBack

    Homes for the holidays

    Toronto's new transfer tax is just one factor as real estate agents, lawyers and movers brace for a busy end to 2007.

    Many in the real estate industry are expecting a much busier than usual December. In Toronto, it may be those rushing to beat the new land transfer tax, but there is also a trend to relocating for new jobs before the end of the year -- also for tax purposes.

    IF YOU'RE SELLING: If your house is on the market or you have a move scheduled for this holiday season, Toronto Real Estate Board president Maureen O'Neill suggests simplifying your life by getting rid of things.

    She also recommends cutting back on social commitments. "Don't try to do it all – baking, parties and children's activities," O'Neill says.

    Outsourcing as much as possible can help you to be ready for those unexpected showings without making the season unnecessarily stressful.

    House cleaners can be useful and ordering out for food can save money and help you keep the kitchen clean for those sudden showings.

    IF YOU'RE BUYING: Because lots of people take time off in December, transactions tend to move more slowly during the holidays, so lawyer Darlene Richards-Loghrin urges you to put your finances in order as soon as you sign the purchase agreement.

    "It's more difficult to get mortgage financing at this time of year," she says. She also points out that being pre-approved isn't the same as getting the mortgage.

    With banks becoming more cautious, they're starting to do their own assessments, Richards-Loghrin says. And if you've agreed to pay $450,000 for a house the bank says is worth only $399,000, it will give you 80 per cent of that.

    Her advice is to "keep your head" while bidding. "Don't get caught up in a bidding war, thinking you have to be in before end of year, or before Christmas. Remember your top price and where you want to go, and stick with it."

    December 1, 2007 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack