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Canadian Real Estate Trends Report

Scotiabank forum predicts another healthy year ahead for Canadian real estate markets

Canadian real estate markets will remain remarkably buoyant, especially in light of the deepening housing downturn in the United States and the generally softening conditions in most other advanced economies, according to experts who presented at Scotiabank's Canadian Real Estate Outlook and Trends Forum, held yesterday in Toronto.

During the forum, keynote speaker Phil Soper, President and CEO of Brookfield Real Estate Services commented, "Our expectations are that balanced conditions will prevail throughout 2008, which will mark a return to a more 'normal' environment than the highly skewed seller's market that we have experienced over the better part of this decade. A stumbling American economy will impact us, slowing growth here at home, yet the solid foundation that supports the contemporary Canadian economy should prevent the housing market here from retracting."

Also speaking at the conference was Adrienne Warren, Senior Economist, Scotiabank. "We expect construction, sales and price gains to moderate in 2008 due to decreasing affordability, especially for first-time buyers, and some softening in domestic economic conditions associated with the intensifying U.S. slowdown," remarked Ms. Warren while presenting the findings of her latest Real Estate Trends Report. "Housing starts will likely ease to around 204,000 units, still firmly above underlying household formation, with the more affordable multiple-family segment holding up better than single-detached construction."

Ms. Warren added that more balanced resale market conditions, as sales volumes edge down and more listings come on stream, should bring average price increases back into the mid-single digit range. Renovation activity, which lags the trend in home resales by one to three years, will outperform new construction.

Mr. Soper added, "New flexible financial products, affordable interest rates and increasing choice in the condominium market across Canada, will continue to attract first-time buyers to real estate - even in high-priced markets. We can also expect to see a broadening buyer pool, as emerging high growth market segments such as single female buyers are anticipated to take advantage of the favourable market conditions."

Economic conditions still favour Western Canada

In her report, Ms. Warren states that housing starts totaled 228,343 units in 2007, essentially matching the high level of activity of the prior two years and only two per cent below the 233,431 unit peak of 2004. Strength was evident across the country, but led by more than a 60 per cent surge in new homebuilding in Saskatchewan, underpinned by strong job growth, good affordability and a positive shift in net interprovincial migration. Resale activity was equally brisk, with MLS sales volumes reaching a new record in 2007 and average home prices climbing a further 11 per cent. While Western Canada continues to lead in price appreciation, average prices rose by at least five per cent in all provinces last year. The momentum of construction and sales has carried through to 2008.

Ms. Warren also reports that from a demand standpoint, economic conditions still favour Western Canada, with its booming resource-based industries and extremely tight labour markets. Yet, affordability is becoming a constraining factor in several centres, including Calgary where average home prices have doubled in the past four years.

From a supply perspective, most Canadian markets are still in sellers' territory, in which prices would be expected to rise faster than inflation. Yet, some of the hottest markets in recent years, including Edmonton, have become much better balanced due to a flood of new listings. Based on a combination of job growth, housing supply and affordability, among this year's potential outperformers are Saskatoon, Regina and Winnipeg in the West, Sudbury, Hamilton and Quebec City in Central Canada, and St. John's to the East.

Commercial markets to lead

Commercial market activity in Canada should be brisk in 2008 even as the pace of residential building gradually cools. Notwithstanding a number of major new office tower developments currently underway, centred in Toronto and Calgary, significant new space is not expected until 2009.

"Given a high pre-lease ratio, vacancy rates should remain low and rents on the rise," Ms. Warren said in her presentation. "The national downtown office vacancy rate hit a 22-year low of just 4.7 per cent in the final quarter of 2007, with both Calgary and Vancouver below the three per cent mark. Demand for new office space is being supported by strong employment growth, environmental and technical upgrades, and institutional investor interest.

A housing boom for the history books

Ms. Warren concluded her presentation with the discussion of real home price appreciation, noting that Canada's current housing boom is the strongest and longest of the post-war era. Between 1998 and 2007, average inflation-adjusted home prices have soared some 65 per cent, easily besting the 32-56 per cent appreciation of the prior three housing cycles of the 1960s, 1970s and 1980s. At their peak in 2005, U.S. real home prices had increased a cumulative 48 per cent from the 1995 trough.

"Canada's record price gain owes entirely to the longevity of the expansion," said Ms. Warren. "The current housing upswing is going on ten years, whereas the prior three cycles ranged from five to six years. It has also outlasted the housing booms experienced in many other advanced economies this decade. Average annual price appreciation over this period has actually been quite typical at just under six per cent per year, and well below the almost 10 per cent average annual price gains recorded in the late-1980s."

Economy to maintain moderate growth

Aron Gampel, Vice-President and Deputy Chief Economist, Scotiabank, also provided a brief overview of the changing economic and financial conditions that are affecting the Canadian outlook.

According to Mr. Gampel, "the Canadian economy is likely to maintain moderate growth this year and next, with the strength of the development boom in the resource-rich regions of the country providing a much needed offset to the increasing drag on our manufacturing centres from the intensifying U.S. slowdown and persistently strong currency."

Mr. Gampel added that "while underlying domestic fundamentals are still encouraging and broadly supportive of the real estate market, the increasing downside risks to the U.S. outlook could further restrain housing's overall performance."

See the full report »

February 27, 2008 in Canadian Market Forecast | Permalink | Comments (3) | TrackBack

Home prices double in 10 years

Real estate markets across Canada posted solid gains over the past decade, and the economic fundamentals remain in place for continued, but more moderate growth. Between 1997 and 2007, average home prices in Canada almost doubled, to C$307,265 ($304,705) in 2007 from C$154,606 in 1997, for a 7.1 percent annually compounded rate of return, according to a report published by Re/Max.

The number of homes sold nationally rose over 57 percent to more than 500,000 last year from 331,092 in 1997. "Never before have we seen such a continuous run up in Canadian real estate," Michael Polzler, an executive vice-president at Re/Max, said in a statement.

Low interest rates, a robust job market and strong consumer confidence were all credited as drivers. Immigration and domestic migration to tap Western Canada's booming economy also helped lift demand.

Real estate considered cheap by international standards attracted droves of U.S., European, Middle Eastern and Chinese buyers to the Canadian market over the past decade, according to Re/Max.

The booming energy sector in Western Canada drew job seekers from across the country to that region, helping the housing market lead the way in terms of growth. "Given the continuation of sound economic fundamentals, it's expected that residential real estate markets across the country will continue to experience healthy activity, albeit at a more moderate pace," the report said.

In its 2008 housing outlook, released in the fall, Re/Max said it expected the domestic market to stay strong, but the red-hot growth seen in 2007 would likely cool, partly due to the economic slump south of the border.

February 26, 2008 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

Real Estate Outlook and Trends Forum

Scotiabank is presenting its Canadian Real Estate Outlook and Trends Forum 2008 on Tuesday, February 26 in Toronto. The purpose is to provide insights into the residential real estate market, including the latest underlying economic factors.

The forum presenters will provide an economic overview; a review of specific economic issues influencing the real estate sector; and a discussion on social and demographic trends which will shape the markets during 2008.

Phil Soper, President of Brookfield Real Estate Services, as Keynote Speaker will address the impact of women on the Canadian market.

Aron Gampel, Deputy Chief Economist, Scotiabank, will provide an overview of Canadian prospects, and highlight key economic trends and the outlook for interest rates in 2008.

Adrienne Warren, Senior Economist, Scotiabank, will offer a commercial and residential market outlook at the national, provincial and urban level, including highlights of the newest Scotiabank Real Estate Trends Report.

The forum will be heald on Tuesday, February 26 from 11:00 a.m. to noon at the Scotia Plaza, 40 King Street West, 63rd Floor, Toronto.

February 25, 2008 in Canadian Market Forecast | Permalink | Comments (3) | TrackBack

Is this the future of real estate search?

Rotten Neighbor: it might just be the next best thing to the MLS when selecting a home to buy ... or not.

What is Rotten Neighbor? According to their press release: Rotten Neighbor is the first real estate search engine of its kind allowing you to rate and review good and bad neighbours before and after you move so you can make a smart real estate decision. How? By user contributed information on neighbours and neighbourhoods in Toronto as well as helping you understand Toronto neighbourhood trends. No matter if you are looking for townhouses, condominiums, single-family homes, or apartments Rotten Neighbor can help you find your dream neighborhood. See local neighborhood trends in Toronto and compare your neighbours to other neighbours in Toronto. Join the Rotten Neighbor community to get in touch with your Toronto neighbours and discover the best neighborhoods for you.

Check out your neighbours »

February 24, 2008 in Location, location, location | Permalink | Comments (2) | TrackBack

The Real Estate Agent Boom

Toronto agent population up almost 20% in three years

Despite increased competition and a declining market more and more people want to get into the real estate business these days. The Real Estate Council of Ontario, or RECO, the regulating body for the real estate brokerage industry in Ontario, says there has been a 20 per cent overall increase in the number of registrants in Ontario since 2005. RECO is currently processing more than 400 applications for new registrations each month. In 2003, there were about 300 new applications per month processed by the industry regulator.

In 2005, Ontario had 40,665 registrants with 11,675 of those coming from Toronto (M postal codes) and 26,792, which included Toronto and Brampton, Durham, Mississauga, Oakville, Milton, Orangeville, and York. In 2007, Ontario had 49,429 registrants with 12,472 of those coming from Toronto (M postal codes) and 29,222, which included Toronto and Brampton, Mississauga, Oakville, Milton, Orangeville, plus Durham and York Regions.

As of today, the Real Estate Council of Ontario is showing 53,932 registrants on its website.

There has been a corresponding increase in membership of the Toronto Real Estate Board:

Given a GTA population of about 4 million, that means there is one real estate agent every 150 residents — men, women and children. And they all want to list your house. In fact there are probably several looking for you right now.

Source: Real Estate Council of Ontario and Toronto Real Estate Board.

February 23, 2008 in Agency Matters | Permalink | Comments (0) | TrackBack

Billions available from real estate

Toronto advised that underutilized holdings could be monetized.

As the bank slogan says, Toronto is richer than it thinks. The Mayor's panel on city finances suggests Toronto could – if it wanted – unlock up to $3.5 billion from the business enterprises and other assets it owns. And that doesn't even begin to touch the extra money that could be squeezed from Toronto's $17.9 billion real estate portfolio, much of it underutilized. Turning assets into cash could allow the city to pay off its debts, the panel says – and relieve it of paying $440 million a year in principal and interest.

See full report in the Toronto Star »

February 22, 2008 in Toronto Real Estate Update | Permalink | Comments (1) | TrackBack

Toronto Real Estate Board reports:

Sales near 3,000 mark at mid-month

Resale home transactions in the Greater Toronto Area declined in the first two weeks of February, Toronto Real Estate Board President Maureen O’Neill announced today. The first half of the month yielded 2,775 transactions, down 14 per cent from the 3,240 sales recorded in the same timeframe last year. The moderation in sales was more pronounced within the City of Toronto--down 18 per cent to 1,066 from last February’s 1,308—than in the 905 suburbs, which saw transactions off 11 per cent.

“It’s important to recognize that the mid-month report provides an indication of market conditions based on a very brief period,” said Ms. O’Neill. “However, we believe the harsh winter weather we’ve experienced in the early part of the month has had a negative impact on both sales and inventory levels. If you can’t get buyers out to your open house, then you are less inclined to list. And fewer listings means less appealing product for the potential home-buyer. It’s a compound effect.”

Although sales eased, several positive factors were also noted. At $385,735, the average price in the GTA rose seven per cent compared to $358,533 recorded in mid-February 2007. Within the City of Toronto, the average rose 11 per cent to $434,657, although pockets within the East end (Agincourt, for example) rose at the more affordable pace of around five per cent. As well, properties are remaining on the market fewer days.

The average number of days on market is currently 31 versus 35 days at the same time last year. Furthermore, a few neighborhoods both within and outside of the 416 area code saw increased sales over the first half of February, 2007.

In Ajax (E14) sales were up 11 per cent compared to mid-February 2007, based mainly on an increase in detached home sales. In the West region, the W3 (York South) district saw a 41 per cent increase in transactions, driven by strong sales of semi-detached homes. Central Richmond Hill (N04) also experienced a notable increase in sales compared to the same timeframe last year. Transactions were up 21 per cent, primarily due to an increase in attached row sales.

“We are optimistic that we will see a strong spring market because the economic fundamentals remain in place,” said Ms. O’Neill. “Prices are still particularly affordable in Toronto’s East end.”

February 20, 2008 in Toronto Real Estate Update | Permalink | Comments (3) | TrackBack

The birthplace of Toronto

Historic Fort York

The settlement of modern Toronto began in 1793 when Lieutenant Governor John Graves Simcoe built a garrison on the present site of Fort York. Fearful of war with the United States, Simcoe planned to establish a naval base at Toronto in order to control Lake Ontario. Simcoe also moved the Capital to Toronto from the exposed border town of Niagara. Civilian settlement followed and a community named York began to grow two kilometres east of the fort (York was renamed Toronto in 1834). In 1812, the United States declared war and invaded Canada.

On the 27th of April 1813, the U.S. Army and Navy attacked York with 2,700 men on 14 ships and schooners. The defenders put up a strong fight but fell back to Fort York in the face of overwhelming odds, eventually abandoning the fort and town to the enemy. In the autumn of that year, the British returned to Toronto and built the fortification that stands today. Fort York’s cannon and earthworks became obsolete in the 1880s, although the army continued to use the fort for training, barracks, offices and storage until the 1930s. Fort York opened as an historic site in 1934.

Today, Fort York is home to Canada's largest collection of original War of 1812 buildings. The Fort is open year round and offers a number of services, including tours, exhibits, period room settings and seasonal demonstrations. During the summer months, the site comes alive with the colour and the pageantry of the Fort York Guard. The Fort also provides a wide variety of education programs for groups of all ages.

See the Friends of Fort York website »

February 20, 2008 in Toronto Landmarks | Permalink | Comments (0) | TrackBack

What is mls.ca?

It's not the MLS®

Q: What is the difference between the Multiple Listing Service® (MLS®) and the consumer website MLS.ca?

A: The Multiple Listing Service® is a cooperative system used only by REALTOR Members of Canada's real estate boards. It is accessible to any REALTOR Member who has agreed to represent your interests and share remuneration from the transaction with a cooperating REALTOR Member. The MLS contains detailed information and numerous search tools, all designed to match people with the properties that fit their exact requirements. MLS.ca is a website operated by the Canadian Real Estate Association (CREA) that displays an abbreviated version of most listings uploaded to the MLS system.

See Toronto MLS listings here »

February 20, 2008 in Buying Toronto Real Estate | Permalink | Comments (0) | TrackBack

Is the boom winding down?

House resales were down 8% from last January

Resale home activity caught a case of the winter sniffles in January, a further sign Canada's mighty residential real estate market is finally in a slowdown. Last month, seasonally adjusted unit sales declined by 0.4 per cent from the month before and 8 per cent from January, 2007, according to data released Friday by the Canadian Real Estate Association (CREA).

“With the further dip in January, Canadian home sales are now well below year-ago levels, adding further evidence that the great boom is winding down,” said Douglas Porter, deputy chief economist at BMO Nesbitt Burns Inc., in a research note.

Steadily rising home prices have benched potential buyers, particularly in Alberta. In January, unit sales in Calgary dropped by 30.9 per cent from the year before and by 21 per cent in Edmonton. At the same time, new listings in those markets surged by 35.3 per cent and 61.1 per cent, respectively.

Across the country, new listings hit a new record 51,716 units in January, rising 9.3 per cent from the previous month. It was the largest month-over-month increase in seven years, and puts the market into “more balanced” territory than it has been at any other point during that time, according to CREA.

Prices across the country did cool somewhat, with the average price rising 8.6 per cent year-over-year to $325,183. This was the smallest year-over-year price increase since December, 2006, and compares with an increase of 11 per cent for all of last year.

“The overall increase in new listings stemmed mainly from a jump in listings in some of Western Canada's most active markets. Price increases in those markets will be more modest compared to what we saw last year,” Gregory Klump, chief economist at CREA, said in a statement.

Some of the country's weaker markets were in Alberta and parts of Ontario including Toronto, Durham Region and St. Catharines.

Stronger markets included Newfoundland and Labrador, where home sales rose 47.5 per cent from the month before and the average price rose by 17.1 per cent.

Saskatchewan was also strong, with sales in Regina rising by 43.7 per cent while the average price rose 69.1 per cent, and in Saskatoon by 37 per cent with the average price up 36.5 per cent.

February 18, 2008 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

An Appreciation for Home Ownership

Let's put things in perspective: homeownership is a great achievement and a terrific investment. But make sure you can afford it before you take the plunge. Once you determine you have the ability to cover all your housing costs then it's time to go for it.

In most markets, homes appreciate at about 4 percent a year. Let's say you buy a home for $200,000 and put 10 percent down. That's a $20,000 outlay. If your house appreciates 4 percent, that's a gain of $8,000. So you just made $8,000 on a cash outlay of $20,000; that's a terrific 40 percent return on your investment. I don't think there's a better investment out there, and we haven't even factored in the priceless emotional gain you get from owning your own home.

When you leap Into home ownership make sure you will land with your feet on the ground.

A long time ago I learned a great piece of wisdom: The hardest thing to do in life is to jump a chasm in two leaps. My message to you is that before you take the leap from being a renter to an owner, please make sure your financial house is in order. Once you determine you can truly afford to be an owner, then you are ready to go and take the leap into home ownership. You've done your homework, which means it is highly unlikely you will ever regret making this big financial move.

February 17, 2008 in Buying Toronto Real Estate | Permalink | Comments (4) | TrackBack

Canadian home sales edge lower

Canadian existing home sales were slightly lower in January, as the market returned to more "balanced" conditions after last year's record setting pace, the Canadian Real Estate Association said on Friday.

Sales edged down 0.4 percent in January from December, to 28,911 units, said CREA, an industry trade organization representing over 90,000 realtors.

Meanwhile, new listings on the multiple listings service (MLS) surged 9.3 percent from the previous month to 51,716 units in January. That is the highest monthly level ever, and the largest month-over-month increase in seven years.

"The overall increase in new listings stemmed mainly from a jump in listings in some of western Canada's most active markets," said CREA Chief Economist Gregory Klump in a release.

"Price increases in those markets will be more modest compared to what we saw last year," he added.

The unadjusted residential average price rose 8.6 percent year-over-year to $325,183 in January. That is the smallest year-over-year price increase since December 2006.

"The January MLS reports again show how the Canadian housing market is different than the market in the United States," said CREA President Ann Bosley.

"CREA had expected the growth in average price to slow in 2008, which is reflected in many markets. Sales levels are returning to what we would consider, on an historical basis, as more normal activity."

Cities that saw fewer sales were Toronto, Calgary, London and St. Thomas, Vancouver, St. Catharines, Halifax and Victoria.

February 16, 2008 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

Toronto Attractions

Casa Loma can't be missed, even if you tried. Perched atop a hill in the north end, Casa Loma draws thousands of visitors each year who look up and proclaim, "It's a castle in the middle of the city!"

Casa Loma was built by Canadian financier Sir Henry Pellatt to fulfill his childhood wish for a castle. His dream took three years and $3.5 million to complete.

It may appear anachronistic now, but it hasn't lost its majestic charm. Its secret passageways, breathtaking towers, sweeping staircase, 800-foot tunnel, stables and 5-acre gardens continue to excite all ages.

After World War One, Sir Pellatt lost his fortune and was forced to auction off his prized possessions, including Casa Loma in order to pay off his debts. For years the stately house sat unoccupied while the city tried to decide whether to tear it down, or turn it into a museum, high school, art gallery or veteran's home. Finally in 1937, the Kiwanis Club of West Toronto suggested turning Casa Loma into a tourist attraction. Today, Casa Loma is owned by the City of Toronto and is still operated by the Kiwanis Club of Casa Loma. It is one of Toronto's top attractions.

See the Casa Loma website

February 15, 2008 in Toronto Landmarks | Permalink | Comments (0) | TrackBack

Is Your Agent a Double Agent?

Let's say you walk into an open house and you're approached by the friendly real estate agent sitting at the dining room table. You're very interested in the house and she says that she can represent you in its purchase. If you agree, you could be giving up your right to an advocate who solely represents your interests by signing up with a dual agent — multiple representation in real estate parlance.

This exact situation also occurs when you see a property on the internet and call the listing agent directly. She then offers to represent you in the purchase. Again, you have given up your right to someone who only represents your interests.

Dual agency occurs when one agent represents both sides in a real estate transaction, or when two agents working for the same brokerage each represent one side. This type of relationship is very easily abused but is a major source of revenue for agents and their brokerages.

What Just Happened?

When you go to an open house, the listing agent or one of her representatives is there to answer any questions about the property. While the goal as understood by the seller is to get exposure for the house, another goal for the agent at the property is to generate new customer leads for themselves.

Where this relationship becomes dicey is when you express an interest in buying the house and the agent offers to represent you in the purchase. When the listing (selling) agent offers to represent a buyer, you need to be alert. It is the listings agents moral and legal obligation to get the best offer possible for the seller.

But when the person who offers to represent you works at the same firm as the listing agent, the risks are more subtle. After all, they have the same boss, who is privy to both sides and your information.

Why Dual Agency Is Controversial

Without going into the legal specifics, dual agents are supposed to protect the interests of both parties. Since the buyer and seller have diverging goals and are both represented by the same agent or brokerage firm (who has a great incentive to see the deal completed), conflicts of interest in this type of relationship are common.

Obviously, the buyer wants as low a price as possible and the seller wants the opposite. Who does the agent choose? The agent doesn't have to, right?

Not exactly, because the agent knows both sides of the deal. Let's say the buyer casually mentions his recent stock sale or how much he's willing to pay, what would a double agent's move be then? The best interest of the seller is to have this information; the best interest of the buyer is for it to be a secret.

The perils to consumers are well-documented.

Real estate agency has its roots in the legal system. There was a point in time, not one that you and I probably remember, when all real estate transactions had to be done by lawyers. Contracts weren't standardized so every deal became a custom job that had to be drafted and vetted: this was expensive and time-consuming.

The success of a free market often depends on how efficiently goods and services are transferred. Standardized legal forms and mandated programs were created so that real estate specialists could legally manage these real property transactions without having to pass the bar exam.

In general, buyers had one representative in the transaction and sellers had another. The sides negotiate back-and-forth towards a deal that would be acceptable to both principals but whose outcome depended on the quality of their representation and negotiation.

So, would you go to court with your opponent's lawyer representing you? Of course not. And in this case, buying real estate isn't mediation or arbitration. In those cases, the third party is neutral and gets paid no matter what the outcome is. The dual agent, on the other hand, only gets paid if the deal goes through.

Considering Dual Agency?

If you are a buyer and decide to use a dual agent, it's your responsibility to choose an agent who has earned your trust over time. If you want to test the double agent, start to tell her a story about how much you'd be willing to pay for the house (but don't give your real number). See if she interrupts you or reacts as if you shouldn't have mentioned that information. Then ensure that you are adequately compensated for the rights you are giving up.

February 14, 2008 in Dual Agency | Permalink | Comments (2) | TrackBack

Home Buying Advice from CMHC

Protect yourself with a team of real estate professionals.

Buying a home is one of the biggest decisions you'll ever make. So when it comes time to signing on the dotted line, make sure you don't make decision alone. To help you put together the right team of professionals, Canada Mortgage and Housing Corporation (CMHC) offers the following list of experts and what they should bring to the table:

Real estate agent.

Among other services, your real estate agent will help you find a home, write an Offer of Purchase, negotiate a purchase on your behalf and save you a considerable amount of time, trouble and headaches. When choosing the agent you want to work with, don't be afraid to ask questions or interview several before selecting the one that seems right for you.

Lender or mortgage broker

Many different institutions lend money for mortgages, including banks, trust companies, credit unions, pension funds, insurance companies and finance companies. It can be a good idea to shop around and speak with more than one lender before you make a choice. Many Canadians choose to work with a mortgage broker because mortgage brokers don't work for any specific lending institution, they can often help you find a mortgage with terms and rates that will suit your needs.

Lawyer

A lawyer will help protect your legal interests by ensuring the property is clear of liens, charges or clean-up orders and will review all contracts before you sign them and your Offer (or Agreement) to Purchase. Make sure your lawyer is a real estate professional who understands the local laws and regulations, has reasonable fees and can explain things to you in plain language.

Home inspector

When considering purchasing a home, you should hire a knowledgeable and professional home inspector. He or she will be able to tell you if something in the home is not functioning properly, what repairs need to be done and whether there may have been any problems in the past.

Insurance broker

An insurance broker will help you with property and mortgage life insurance. Your lender can also help you with mortgage life insurance.

Appraiser

An appraiser will assess your property's worth and help protect you from paying too much.

Land surveyor

You may need the services of a land surveyor if the seller does not have a current Survey or Certificate of Location.

CMHC is Canada's national housing agency and a source of objective, reliable housing expertise. See articles about buying a home on the CMHC website »

February 14, 2008 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Meet Ted Truitt

Ted Truitt is "real estate's greatest sales legend," "the king of close," "the archduke of acreage," and "the dean of the deal." Now here's the real estate coach your agent needs.

Meet Ted and take his "tedst" »

February 13, 2008 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Perils of Dual Agency

A judge has told an Ottawa real estate agency it does not deserve to be paid for acting on the sale of a home. He concluded the agency breached its fiduciary duty to a pair of home sellers by not fully disclosing the connection between one of its agents and the buyer of their home.

See full story in the Toronto Star »

February 12, 2008 in Dual Agency | Permalink | Comments (0) | TrackBack

Real estate affordability to improve

Housing affordability is likely to improve this year as house-price growth eases and falling interest rates make mortgages cheaper, economists say. Michael Gregory, senior economist at BMO Capital Markets, said housing affordability was becoming an increasingly important issue in some Canadian cities, with house prices jumping at "unsustainable" levels amid a surge in population-driven demand, a strong jobs market and relatively low mortgage costs.

In Saskatoon, the cost of a new house skyrocketed an amazing 45.1% in 2007, while prices were up 25.9% in Regina and 21.5% in Edmonton, Statistics Canada figures showed yesterday.

Prices were up 4.1% in Montreal, 6.4% in Vancouver, 6% in Calgary and 3.4% in Toronto and Oshawa over the year.

While new home prices should remain strong in 2008, the pace of growth will continue to moderate to about 2% to 3%, Mr. Gregory said.

The slower pace of growth is already evident in the market as newhome prices increased only 0.1% in December, well below the average monthly increase of 0.5% in 2007.

"The key thing is the last few months have been quite subdued in terms of the monthly increases, at least the trend has been, and if that continues, we'll probably have subdued home-price inflation going forward," Mr. Gregory said.

"The market has a way of cooling itself. Alberta had just got so expensive that people stopped moving there. Eventually supply catches up to demand, and that's what happened in Calgary," he said.

He said existing home prices, due on Friday, should also show signs of easing, with both segments of the market slowing further in 2009.

Rishi Sondhi, economist at RBC Capital Markets, said housing should become more affordable as house-price gains ease and interest rates fall, with the Bank of Canada expected to cut interest rates again in March following a 25-basis-point cut to 4% in January.

Some economists expect rates to reach as low as 3% by mid-year.

Mr. Sondhi said the moderation in house-price growth was placing less pressure on inflation, leaving the door open for the Bank of Canada to cut interest rates to prevent a significant economic slowdown.

Larry Stewart, broker and owner of RE/MAX Saskatoon, said the sharp rise in the city's house prices in 2007 was driving more people, particularly first-time home buyers, into cheaper high-density living, such as condominiums.

"That's filling the gap for the newhome buyer [who] can't afford to get into the market with increased house prices," Mr. Stewart said, adding that prices in Saskatoon would likely rise a further 20% in 2008.

However, Mr. Stewart said aggressive competition between mortgage companies was helping younger people to get into the market, offering, for example, loans equal to 100% of the value of a home.

Condominium sales have been surging across Canada, particularly in such high-density city areas as Toronto, where condo sales accounted for 52% of all new-home sales in 2007, according to figures from N. Barry Lyon Consultants and RealNet Canada.

February 12, 2008 in Canadian Market Forecast | Permalink | Comments (2) | TrackBack

Toronto Neighbourhood Profiles

Toronto is known for its diversity and culture and this is reflected in its many neighbourhoods. The City of Toronto publishes detailed demographic information about each neighbourhood, prepared by the Toronto's Social Policy Analysis & Research Unit. Reports and links to other studies about Toronto's neighbourhoods are also included.

See Toronto neighbourhood profiles »

February 11, 2008 in Location, location, location | Permalink | Comments (1) | TrackBack

First-time buyer expectations muted

Saving for the down payment on that detached house in downtown Toronto? Don't bother.

If recent surveys are correct, escalating housing prices are putting detached home ownership in areas like downtown Toronto out of reach for the first-time homebuyer. Don Lawby, president of Century 21 Canada, says first-timers should stop focusing on buying a dream home and concentrate on simply getting into the market. "I think that the reality is you can have your heart set and you can have a dream, but your dream can't be fulfilled as an entry-level buyer the first time."

Lawby is referring to a national survey conducted by Century 21 that finds Toronto to be one of the most expensive markets in the country.

An annual home ownership survey conducted by the Royal Bank found similar results. About 29 per cent of Canadians polled by RBC reported an intention to buy a home over the next two years. Most of those who will be buying (46 per cent) were aged 25-34, suggesting that for many it would be their first. In fact, 41 per cent of those who say they are "likely" to purchase within the next two years are currently renting.

And Statistics Canada data has found a national trend toward the purchase of condos, townhomes and other multi-family dwellings. The number of Canadian homeowners who own a detached single-family house is down 6 per cent from 1996. It all adds up to first-time-buyers having to be prepared to make significant trade-offs if they want to live in prime markets. "Escalating prices mean you're going to get less for your money," he points out.

"What you shouldn't do", Lawby says, "is keep saving in the hopes that the prices will fall any time soon."

There is another option: an advance on inheritance.

"In some cases parents are saying, I have extra money in my home– I'm going to give it to you and you can use it," says Lawby. "I'm going to help you out now but it really is your inheritance down the road.'"

Barring that, Lawby says young buyers should get over the idea that they'll get everything they want on the first go.

"I think we've become an instant gratification community," he says. "People feel more entitled, but the reality is you have a job, you have income and you need to get a mortgage you can service."

February 10, 2008 in Buying Toronto Real Estate | Permalink | Comments (4) | TrackBack

Toronto's Monopoly Play

Canadians vote like mad for Monopoly real estate

It may sound like fun and games, but some people are taking getting their cities into Monopoly's upcoming World Edition rather seriously. Campaigns on the social site Facebook and other Internet sites have boosted the fortunes of Canada's three candidate cities vying for spots on the game board.

Montreal, Vancouver and Toronto are among 68 world cities being considered for inclusion in the international version of Monopoly to be launched this fall, competing for spots otherwise occupied by the likes of Illinois or Pacific avenues.

The 20 world cities with the most votes as of Feb. 28 will earn a spot on the board known for making Marvin Gardens a household name. And while Canadian cities were at first slow getting out of the gate, all three are currently in the Top 20.

As of now, Canada is the only country with three cities in the Top 20. Montreal was ranked No. 1, Vancouver was No. 9 and Toronto No. 14. See the Leader Board.

Montreal #1? Come on Toronto!

A little bit of online campaigning may be responsible for that as Internet sites such as smartcanucks.ca and specialized groups on Facebook have been calling for Canadians to cast their votes in favour of the three cities.

But Canada isn't alone — virtually every city from Athens to Zurich has an online campaign to shore up votes.

"Last year, we voted to make Rome's Colosseum one of the new seven wonders of the world. Now you can vote to include Rome in the Monopoly," wrote Martha Bakerjian, on her travel blog.

You may cast votes for up to 10 of the "candidate cities" each day at www.monopoly.com.

February 9, 2008 in Location, location, location | Permalink | Comments (7) | TrackBack

Commercial Real Estate Update

More Than 800,000 Square Feet Traded In January

Toronto Real Estate Board members saw 842,475 square feet of space traded in January 2008, Commercial Council Chair Garry Lander announced today. "The new year is off to a brisk start," said Mr. Lander. Lease rates traded within their customary ranges last month. Industrial space (all size categories) went for an average of $5.49 sfn, up three per cent over January of 2007. Meanwhile commercial space traded for an average of $17.03 sfn, and office space for an average of $11.87.

Market Highlights

TREB members reported 58 sales of Industrial/Commercial properties in January, of which 29 were Industrial properties in all size categories. These sold for an average of $123.67 per square foot, which compares to a figure of $111.55 derived from non-MLS sources.

See Full Report »

February 8, 2008 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

Toronto Commercial Real Estate

2007 GTA Commercial Market Report

RealNet Canada Inc. releases Q4 2007 commercial real estate investment statistics for the Greater Toronto Area. Record fourth quarter investment volume helped boost GTA market to record close in 2007. Fourth quarter sales volume of $3.6 Billion in the Greater Toronto Area (GTA) commercial real estate market reflected continued strong activity in investment-grade assets. This tally is the second highest quarterly volume on record since 1995. The quarterly total boosted the 2007 annual total to an all time record of $12.3 Billion, up 4% from the previous year, according to the report.

See RealNet Canada’s Q4 2007 GTA Commercial Sales Report »

February 6, 2008 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

Toronto Real Estate Board reports:

New Year Off To Good Start

A strong performance within TREB's Central districts drove the Toronto area real estate market to a healthy 5,073 sales in January, off just two per cent from last year's record performance, President Maureen O'Neill announced today.

"While sales were strong, price increases remained modest, with the average rising six per cent to $374,449," said Ms. O'Neill. "There is clearly still a place for the first-time buyer in today's resale market."

Breaking down the total, 1,940 sales were reported in TREB’s 28 West districts and averaged $351,594; 945 sales were reported in the 14 Central districts and averaged $485,259; 966 sales were reported in the 23 North districts and averaged $410,289; and 1,224 sales were reported in TREB’s 21 East districts and averaged $296,838.

Neighbourhood Corner

Mississauga

There were 647 sales in Mississauga this January, a decline of three per cent over the first month of 2007. The average price came in at $339,655, a one per cent increase over the same time-frame last year. Of these sales, 196 were of detached homes which averaged $516,190, up eight per cent over January 2007.

See Full Report »

February 5, 2008 in Toronto Real Estate Update | Permalink | Comments (2) | TrackBack

CMHC Housing Market Outlook

Soft Landing for Housing Starts in 2008

Housing starts will moderate this year to 209,500 units after reaching 227,395 units in 2006, according to Canada Mortgage and Housing Corporation's (CMHC) first quarter Housing Market Outlook report. Although residential construction will decline, 2007 marked the sixth consecutive year in which housing starts exceed 200,000 units. Starts will ease further to 195,500 units in 2008.

"Construction activity will continue to moderate as demand for home ownership moves toward more sustainable levels," said Bob Dugan, Chief Economist at CMHC. "Most of the pent-up demand that built up during the 1990s has been absorbed, and higher mortgage carrying costs due to continued strong price growth and modest increases in mortgage rates will contribute to the slower pace of new home construction both this year and next."

Existing home sales, as measured by the Multiple Listing Service (MLS®), remained near record levels in 2006. Sales will ease to 464,550 units in 2007 and to 449,200 units in 2008. Similarly, after five years of strong growth in house prices, the rate of increase in the average MLS® price will moderate to 5.9 per cent in 2007 and 3.3 per cent in 2008 as existing home markets move toward balanced conditions. The strongest price growth will be in Western Canada; with the average MLS® price in Alberta growing by 13.3 per cent in 2007 — after having increased by 29.5 per cent in 2006. Average MLS® prices in Ontario and Quebec will grow by 3.2 per cent and 4.1 per cent in 2007, respectively.

In Ontario, slower growth in net migration, rising new home prices and increased choice in the resale market combined with land constraints will weaken housing starts from 73,417 units in 2006 to 67,000 units in 2007 and to 62,750 units in 2008. These declines will move housing starts in Ontario into line with the average level over the past decade and a half.

See the full CMHC Housing Market Outlook 2008 »

February 5, 2008 in Canadian Market Forecast | Permalink | Comments (1) | TrackBack

Multiple Representation

Or Dual Agency by another name

Whether you are a home buyer or seller, it is important for you to understand the legal nature of the agency relationship you have with your agent. Your agent must act in your best interest while representing you in a real estate transaction. This gets complicated if you find yourself in a “multiple representation” situation.

What is dual agency? Basically, it means that a real estate agent is representing both the buyer and seller in a real estate transaction, which is legal in Ontario but … A real estate agent who is working as a dual agent could easily find herself in a conflict of interest by trying to represent the best interests of both parties.

So, what should you do if you find yourself in a dual agency transaction? First, insist on clear communication at all times. Second, be explicit with the agent about your needs in the transaction. Third, check with the agency’s broker of record if you have any questions or concerns.

If all the involved parties work hard toward a smooth transaction, dual agency doesn’t need to be a problem. But, it is your right and responsibility to ask questions and make sure you are not being disadvantaged. It can be a complicated situation, so if you have questions or want more information about dual agency, ask until you are satisfied.

February 5, 2008 in Agency Matters | Permalink | Comments (2) | TrackBack

Give Homebuyers a Break: TREB

With the City of Toronto's new land transfer tax coming into effect last week, even as City Council considers a property tax increase, the Toronto Real Estate Board is calling for Toronto Council to give homebuyers a break.

"Toronto's Realtors and the public continue to believe that a Toronto land transfer tax is an unfair way for the City to raise revenue," said Maureen O'Neill. "The City's land transfer tax took effect last week, even as current and future homeowners face a property tax increase at double the rate of inflation. The City can't have its cake and eat it too. Homebuyers deserve a break."

TREB's statistics of housing sales have shown an interesting trend since City Council's approval of a Toronto land transfer tax last October. When City Council approved the Toronto land transfer tax, it also decided to exempt home purchases made by December 31, 2007. In both December and November of last year, there was a significant increase in market activity. For example, although the month of December typically sees less market activity because of the holidays, in December 2007 housing sales in Toronto were up by 26 per cent over December 2006, significantly higher than the 5 per cent increase for the GTA as a whole. TREB will be releasing market statistics for January 2008 on February 5.

"Clearly, there has been tremendous market activity in Toronto since Council's approval of the land transfer tax. Council's decision to grandfather home purchases made by the end of 2007 means that those homebuyers will avoid the City's tax," said O'Neill. "With the City's grandfathering period over, and the Toronto land transfer tax taking effect last week, we are continuing to watch the market."

TREB is paying close attention to the City's 2008 operating budget, which proposes a residential property tax increase of 3.75 per cent, almost double the 2007 average Toronto inflation rate of 1.9 per cent.

"The City can't keep raising tax after tax on homebuyers. Enough already," said O'Neill. "The proposed budget released by the City last week is like a weight around the ankle of Toronto taxpayers. The new land transfer tax on top of a proposed property tax increase, at double the rate of inflation, sends the wrong message to homebuyers. The land transfer tax should be rolled back immediately."

TREB will be providing input to City Council with regard to the City's 2008 operating budget and hopes that City Council will use it as an opportunity to give homebuyers a break.

"We look forward to working with City Council as they debate the budget. We hope that the panel appointed by Mayor Miller last fall will recommend some real options for savings and that the City will move quickly to prioritize its core services," said O'Neill. "The Toronto land transfer tax is an unfair way to address the City's financial challenges. At the very least, we expect it to be rolled back as savings from uploading and other revenue sources are realized, as was approved by City Council last October 22," said O'Neill.

February 4, 2008 | Permalink | Comments (3) | TrackBack

Toronto welcomes the world

Toronto has become a city built in the image of its own people, fed by the many influences of its ever-changing human fabric, one that is constantly unfolding and alive with potential and energy. Torontonians display a level of openness unlikely in any city, let alone a city of Toronto’s size and magnitude.

Toronto is metropolitan, yet it feels as intimate as a village. Its welcoming spirit has attracted millions of people from all corners of the world, making up a deep and culturally rich human mosaic. Toronto doesn’t have a Chinatown, it has three of them. It doesn’t just have a Caribbean festival, it has the largest one outside of the Caribbean. Toronto isn’t just diverse, it’s the most diverse city in the world. Toronto is a culture of cultures, a place of infinite opportunities where everybody is appreciated for how they stand out, not for how they fit in. Torontonians don’t look to settle their differences, they are inspired by them. Torontonians celebrate humanity.

What makes Toronto such a uniquely interesting place is answered by a constantly growing list: its innovative architecture, its theatre district, the hundreds of ethnic restaurants, the character of its neighborhoods, its accepting legislation, a multi-talented workforce, museums that are themselves works of art, the stories of its street corners, its cleanliness, the International Film Festival, the parks, the lake, the celebration of humanity. In short, Toronto is a city built with and for the limitless imaginations of the people that come here. And it is these people that make Toronto the city of imagination.

A City of Tourism, Toronto is the perfect place for the traveler seeking a unique urban experience. With so much to offer the imagination, Toronto has become the City of Business, a place where the diversity of the population creates possibility. This also makes it the perfect City of Meetings as the city has always been an ideal gathering place.

For many years Toronto has been a best kept secret tourist destination; a result of its people’s modest character. But the media and demanding travelers have discovered this cultural Mecca and are beginning to spread the word.

The city’s unique diversity has quietly exploded into a variety of attractions that are unmatched elsewhere. A long weekend in Toronto will scarcely give you a flavor of what can be experienced in the city. And flavors, there are many: Greek, Chinese, Portuguese, Jamaican, Italian ... and these flavours go well beyond cuisine. From the one-of-a-kind Libeskind renovation of the Royal Ontario Museum to Gehry’s design for the Art Gallery of Ontario, from the height of the CN Tower to the endless lake view, from the new Four Seasons Centre for the Performing Arts to the world premiere theatrical production of Lord of the Rings, from the bohemian Distillery District to the multitude of ethnic neighborhoods, from the International Film Festival to Caribana, Toronto is a city constantly changing and evolving, enriched by an unlimited imagination.

Toronto, the city of imagination, is a destination that appeals to the demanding traveler’s curiosity for the new, the different, the interesting. For the traveler, Toronto is the perfect destination.

For more information on discovering Toronto, see torontotourism.com.

February 4, 2008 in Location, location, location | Permalink | Comments (1) | TrackBack

Real Estate Agency ... "eh?" to "zed"

Ever wondered what the term real estate "agent" really means?

That single word - "agent" - has great significance, and does far more than just designate an individual who holds a real estate license.  The real estate brokerage business is governed by a body of law called "the law of agency". The word "agency" refers to the relationship which exists "when one person is employed to act for another".

In real estate, the most common form of agency is established when homeowners employ a real estate brokerage to act on their behalf to secure a buyer for their property. The term "act on their behalf" is important in that it refers to the brokerage's responsibility to look after the best interests of the owners. 

Once homeowners have listed their home for sale with a brokerage firm, the brokerage becomes their agent. The owners become the brokerage's client (or principal). 

The duties of the real estate agent to the sellers include:

1) loyalty 
2) obedience 
3) skill, care & diligence 
4) disclosure of information 
5) and accounting. 

These duties are said to be fiduciary in nature, meaning that there exists a trust relationship between the client (usually the sellers) and the agent (the brokerage company).

The brokerage, acting as agent, is obligated to be loyal to the best interests of the sellers, and obedient to their objectives, i.e. to perform brokerage services faithfully to the sellers' objectives. The brokerage is also required to use the highest levels of skill, and to carefully and diligently protect the sellers' real estate interests. 

The broker's duty of disclosure relates to keeping the client informed. Because the brokerage's loyalty is to the client, all brokerage representives are obligated to disclose any knowledge in his or her possession about potential buyers, their intentions, their abilities to make a purchase, and changes in the real estate market in general. They are also required to provide a complete accounting of their activities, and of the final transaction itself.

A Buyer's Agent

But change has raced through the real estate industry in the past several years including the growth of buyer’s agency. Many consumers initially resist when presented with the option of retaining a buyer’s agent and signing yet another contract. This resistance has more to do with a lack of understanding of the role of a buyer’s agent than it does with an actual dislike of the buyer’s agent concept.

Before the advent of buyer’s agency, all real estate agents owed their fiduciary responsibilities to the seller. The agent was responsible to the seller since the seller paid the commission and had signed a listing contract designating an agent to represent them in exchange for the commission. As a result of this logic, real estate agents involved in a transaction could only be devoted to the one side of the transaction – the seller’s side! This was true even when an agent had only been working with the buyer, and was responsible for writing and presenting the offer to purchase!

What did that mean to the buyer? It meant that if their agent knew proprietary information about the seller that could help the buyer in formulating their offer, the agent was not allowed to share it with the buyer. For example, let’s assume that the agent who brings the buyer knows that the seller is under great pressure to sell due to 1) a relocation, or 2) a difficult divorce or, 3) financial pressures. Although this information could be useful to the buyer in deciding what to offer, none of this information can be shared under the traditional definition of agency. Likewise, if the buyer has confided with his agent a willingness to go higher than his original offer then in the traditional agency situation the real estate agent would be obligated to share this information with his actual client, the seller.

It wasn’t until real estate buyers began to demand fair and equal representation of their interests that the concept of buyer’s agency took hold. Today you will find real estate agents who specialize in representing buyers in most major metropolitan markets and in the outlying areas as well.

Hiring a buyer’s agent does require that you sign a contract. The contract is signed prior to services being rendered. It usually identifies a time period during which the agent will work with you to find a property.

Services a buyers agent should provide:

The contract will also spell out how the buyer’s agent will be paid commission and/or fee. Some agents will require that a small retainer be paid up front with the balance of the fee being paid as a commission upon the close of the sale. This formalizes your business relationship with the agent and also commits the agent to servicing your real estate needs. Other buyer’s agents will request they be paid a commission out of the proceeds of the sale. The commission usually amounts to half of the total fee that the seller has agreed to pay their listing agent upon the close of the transaction.

Skills a buyer’s agent should possess include:

How can you locate an established buyers agent?

You can start by looking here, on the internet. Many buyers’ agents now advertise their specialty as part of their promotional efforts. The highest degree of buyer’s agency is provided by Exclusive Buyers Agents, who specialize in representing only buyers interests and thus ensure that you never become involved in a dual agency situation (where one agent is representing both buyer and seller in a transaction).

February 2, 2008 in Agency Matters | Permalink | Comments (1) | TrackBack

Sugar Beach

Jarvis Slip to become 'Sugar Beach'

A new urban beach is coming to downtown Toronto. Waterfront Toronto announced today it has chosen a playful beach design to revivify the Jarvis slip, a one-acre parcel of waterfront property between the Redpath sugar refinery and an office building for Corus Entertainment.

The winning design, Sugar Beach, weaves together a public plaza, a promenade and a new sand beach along a dock wall at the foot of Lower Jarvis Street. The plan’s signature feature is several rows of candy-coloured beach umbrellas. However, immediately after lavishing praise on the winning designers from Montreal-based Claude Cormier Architects, the chairman of the jury that selected Sugar Beach suggested the umbrellas be scrubbed from the design.

February 1, 2008 in Location, location, location | Permalink | Comments (0) | TrackBack

Winter Recreational Property Report

Winter recreational property prices remain red hot during Canada’s coldest months. Canadians are committed to their winter retreats despite rising prices.

While sunshine states such as Florida and Arizona have long enticed Canadians to purchase their winter retreats in warmer-weathered American cities, the uncertainty clouding the U.S. housing market has many Canadians favouring properties north of the border. In fact, 36 per cent of Canadians who own a winter recreational property or who are considering purchasing one cite they are more inclined to buy a property in Canada than in the U.S. because of the economic uncertainty plaguing our southern neighbours, according to the 2008 Royal LePage Winter Recreational Property.

The 2008 Royal LePage Winter Recreational Property Report comprises a nationwide research poll of Canadians’ attitudes on the market (conducted by Angus Reid) and an analysis of recreational property prices, trends and activity in selected winter leisure markets across the country.

Sky’s the limit when it comes to buying mountainside

For those looking to enjoy their own winter wonderland, Quebec, Ontario, Alberta and British Columbia offer the greatest selection of recreational areas, with real estate prices increasing from east to west. Strong demand combined with limited mountain-based properties has prices ranging from $180,000 to $850,000 in Quebec, $400,000 to $1 million in Collingwood, and $450,000 to $2 million in British Columbia for a standard detached, mountainside, three-bedroom chalet. A shortage of listings in areas of high demand, such as Whistler and Fernie, has led to property prices appreciating by as much as 10 and six per cent, respectively, in the past year.

“High levels of demand combined with limited inventory have pressured winter recreational property prices upward – a trend expected to continue well into the future,” said Lisa da Rocha, vice president, marketing communications, Royal LePage Real Estate Services. “Local buyers and foreign investors alike are taking advantage of Canada’s iconic snowy winters, and realizing winter recreational properties are a sound long-term investment.”

Let it snow, let it snow, let it snow – or not

While snowfall levels in North America have decreased over the past few decades; when asked, “Are you less likely to purchase a winter recreational property if a reduced level of snowfall continues?” 66 per cent of Canadians who own a recreational property or are considering purchasing one are clearly committed to the cold climate and answered that regardless of snow, a winter recreational property would still be their winter retreat.

Not so little cabin in the woods

While everyone’s idea of a winter retreat may differ, there are a variety of property types available across Canada from rustic chalets to grand lodges to maintenance-free condominiums to satisfy every need. Canadians list their top three features as a traditional chalet structure with a rustic charm, extra rooms for guests and grand fireplaces.

Buyers in areas including Whistler, Vernon and Big White, are demanding luxury properties with features including granite countertops, heated floors and stainless steel appliances.

Top Winter Recreational Property Features:

  1. Traditional Structure with Rustic Charm
  2. Extra Bedrooms for Guests
  3. Grand Fireplaces
  4. A Large, Open Great Room
  5. Outdoor Hot Tub
  6. Office with Internet Access
  7. Professional Kitchen

Additional report findings:

More than four-in-ten (43%) respondents find the idea of owning a condo over a chalet attractive. Canadians aged 55 + (46%) find condos more appealing than standard chalets compared to those 35-54 years (38%), presumably for their maintenance-free lifestyle. However, in some markets such as Collingwood, there is an increased pressure on detached residences, versus the traditionally popular condominium.

Eight per cent of Canadians own a winter recreational property or are considering purchasing one in the next three to five years, with residents of British Columbia representing the largest purchaser population (13%) and Atlantic residents making up the smallest (4%). Quebec and Ontario residents comprise nine per cent and seven per cent of winter recreational owners and future buyers, respectively.

Winter recreational markets including Mont Tremblant, Canmore, Whistler and Fernie are increasingly attracting European buyers.

See the full 2008 Royal LePage Winter Recreational Property

February 1, 2008 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

Toronto home buyer tax starts today

See Tax Calculator »

Buyers in Toronto's high-priced real estate market will be digging even deeper today as the city's newest tax goes into effect.  "Obviously the day has come. It's still a back-breaking tax," said Von Palmer, spokesperson for the Toronto Real Estate Board, which led a bitter fight last year to block the municipal land transfer tax. "We hope it does not affect the market in a negative way."

Sales increased after the tax was approved last October, Palmer said. In the first two weeks of January, Toronto sales were up 21 per cent over the same period in 2007, while in the 905 area – where the tax does not exist – sales were up by only 5 per cent.

"We're not suggesting it's because of the land transfer tax. That would be speculation," he said. "However, human nature being the way it is, some are wondering how to avoid the land transfer tax."

The tax, on both residential and commercial properties, is in addition to the existing provincial tax.

Purchasers are exempt from the Toronto tax if they signed a deal to buy before December 31, even if the deal closes after today. Also, first-time home buyers receive a rebate on purchases up to $400,000.

Frequently asked questions

How will I pay the land transfer tax?

It will be paid as part of the up front closing costs along with the provincial land transfer tax.

What rebates are available?

Rebates will be given to purchasers who signed sales agreements before Dec. 31, 2007, or are first-time home buyers.

How does the rebate for first-time home buyers work?

If you are buying a residential property with up to two single-family residences, you are eligible for a rebate of up to $3,725. If your house price exceeds $400,000, you pay 2 per cent on the remaining portion.

How will I get the rebate?

If it's a full rebate, you will receive it when your lawyer registers your property transaction. You will not be required to pay the tax then. But if the price of your home exceeds $400,000, you are eligible for a rebate of only the tax paid on the first $400,000, and the full tax will be collected when your lawyer registers your property transaction. Once your lawyer submits your rebate application, a rebate cheque will be sent to you.

If I signed my deal to buy a house in January but it has not closed yet will I pay the new tax?

Yes, unless you are a first-time home buyer.

February 1, 2008 in Toronto Real Estate Taxes | Permalink | Comments (2) | TrackBack