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Toronto tax-payers live on easy street

Toronto homeowners just may be the most pampered, tax-sheltered, spoiled-rotten ratepayers in the GTA. The residential property tax hike to be approved at Toronto City Hall today or tomorrow is expected to be 3.75 per cent – among the GTA's lowest. Oshawa, in assessment-poor Durham Region, will hike taxes 4.61 per cent, and neighbouring Whitby, 5.67 per cent.

Little wonder residents outside the downtown core frequently write letters to the editor exasperated at Toronto's call for provincial funding of services. They look at a $380,000 house in Toronto and see a tax bill of $2,322, while a similarly priced home in Oshawa pays taxes of $5,745.

The owner of a $380,000 home in Pickering pays $4,270, while the Bramptonian pays $3,729 and residents of Markham, Mississauga or Vaughan pay more than $2,922. Toronto's neighbours wonder how Mayor David Miller can cry poor but refuse to tax Toronto homeowners at rates comparable to their municipal cousins.

Why is it that, hypothetically, a senior in Pickering can afford a 5 per cent tax hike, but Toronto politicians argue that a similar hike on a Toronto senior will push her out of her home?

See article in the Toronto Star »

March 31, 2008 in Toronto Real Estate Taxes | Permalink | Comments (2) | TrackBack

Canada's housing boom loosing steam

The Conference Board of Canada is warning of "a lengthy slowdown" in Canada's residential construction industry with profits, already off 22 per cent in 2007, falling for the next two years. The longest housing boom in the post-war era is now "out of breath," following spectacular growth in the number of homes built and the prices paid for them, the board said in a report released Thursday. "Satiated pent-up demand and slower economic growth is leading to what is expected will be a long slowdown in the housing market," the report says.

After years of "relentless" house-price increases, declining affordability will be one of the primary factors weighing on the market, board economist Valerie Poulin said in an interview.

March 28, 2008 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

How long should it take to sell?

The time it takes to sell a home varies, but there are things within your control that will help it sell faster. Some homes take days to sell, while others take months. Generally, a desirable property priced in the "market zone" should sell within four weeks in a normal real estate market.

But don’t get discouraged if a sale takes longer. Instead, see if you can determine why it’s not selling and ask your listing agent what you can do to help speed things up.

Curb appeal

First impressions go a long way. Before you list your home, give it a quick face-lift. Take care of minor cosmetic repairs both inside and out. Wash your windows, weed the garden and trim back any overgrown shrubs or trees. Give your front hallway a fresh coat of paint, replace light bulbs and dust for cobwebs. All of these quick fixes can make a big impact on selling your home quicker.

The price is righteous

Listing your home at the right price is key when it comes to selling. It can be difficult for homeowners to determine their homes’ true worth because of emotional ties and lack of exposure to the market. So get your listing agent to do a competitive market analysis (CMA) to objectively pinpoint your home’s optimal price. You don’t want to scare off potential buyers with an unrealistically high price.

But often, the time it takes to sell your home will depend on factors that are beyond your control.

Market demand

If your neighbourhood is hot and there aren’t many homes for sale, you have what’s called a seller’s market. So if the demand for homes is greater than the supply, you should sell quickly and receive a good offer. On the flip-side, if you’re selling in a buyer’s market where supply exceeds demand, it will likely take longer to sell and you may have to accept less than you wanted.

Economic influences

The local business climate and fluctuating interest rates can also influence how long it takes to sell your home. For instance, if interest rates fall, people can afford to borrow more. However, if the area’s largest employer announces layoffs, very few people will be thinking about buying a new home. The best way to get a good understanding of the market conditions in your area is to monitor current property sales.

But as I have often told my clients, selling is like entering a lottery and you just have to wait until "your number comes up".

March 27, 2008 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Preparing Your Home To Sell

When preparing your home to sell, it is imperative that you put yourself in the buyer's shoes. Look at your home through the buyer's eyes. You've grown accustomed to the way your home looks but they're seeing it for the first time and you only have one chance to make a good first impression.

Curb Appeal

When a buyer pulls up to your home it must invite them inside. Make sure the lawn is neatly mowed and edged. Trim trees and shrubs and weed the flower beds. Keep driveways and walkways free of snow and grass clippings. Touch up any chipped or peeling paint. Repair any damaged windows, screens or doors. Replace any burned out bulbs in exterior lighting. Pick up all toys and clean up clutter in the yard.

Welcome Home

As the potential buyer walks through the front door, does it whisper "Welcome Home." Make sure the front door is in tip top condition and free of any obstacles. When they step inside, be sure they're greeted with a fresh and pleasant aroma.

Interior

Once that potential buyer has crossed the threshhold, it's critical that you have decluttered and properly staged your home. Here is a checklist to help you out:

First Impression Checklist for Showings

So if you're planning to move this year, now is the time to begin preparing your home for sale.

March 26, 2008 in Selling Toronto Real Estate | Permalink | Comments (2) | TrackBack

Future real estate trends for Canada

With housing prices collapsing in parts of the United States, many Toronto homeowners are wondering if the same fate awaits the real estate market here. Housing experts seem divided on that question.

Ted Tsiakopoulos, Ontario regional economist for the Canada Mortgage and Housing Corporation, laid out the optimistic case. "We don't see a U.S.-style housing market meltdown in Canada for three very important reasons," he said today.

In mid-March, however, the Royal Bank reported that home ownership costs have risen to the highest point since 1990. That year marked the "peak of the housing bubble," it said. However, the bank was optimistic the current situation should ease.  "Going forward, falling mortgage rates, cooler forecast house price gains and decent income growth should all lead to improved affordability across most markets," it said.

Tsiakopoulos said the CMHC sees moderate price growth continuing. But Ontario MP Garth Turner has a different view. The author of a new book, "The Greater Fool: The Troubled Future of Real Estate," Turner thinks the pieces are in place for a real estate collapse in this country.

The U.S. financial sector has been rocked by subprime mortgages, which essentially provided a way into real estate for people who wouldn't qualify for conventional mortgages. But Turner says the real story is that housing prices in the U.S. got more expensive than Americans could afford.

In Canada, real estate prices have essentially doubled in five years. Turner said he didn't think that was a "reasonable" increase. Over that period, household incomes have stayed essentially flat, he added.

Mortgages in Canada?

"What's been the Canadian response? Well, guess what? We've brought in a new kind of mortgage — 40-year amortizations," Turner said. You can also get a home for virtually no money down, Turner adds. "You tell me what the difference between subprimes and a 40-year, no-down-payment loans in Canada is. The net effect is exactly the same. People buy houses who otherwise couldn't buy them." In the biggest markets, people are unquestionably house-poor, he said.

The RBC's affordability measure for a detached bungalow in Vancouver is about 74 per cent and more than 47 per cent in Toronto.

Places like Calgary and Edmonton come closer to the national average of 41 per cent.

The affordability measure is the proportion of median pre-tax household income required to service the cost of mortgage payments (principal and interest), property taxes and utilities.

The measure has traditionally been around 30 per cent, Turner said. "We've got a very screwed-up personal financial situation right now, and I see some dangers in that," he added.

RBC's Amy Goldbloom said that an their study finds that for 2007, the U.S. situation was worse than here. Mortgage debt there was 119 per cent of disposable income versus about 79 per cent in Canada. Total household debt was also much higher in the U.S. than Canada. "Americans are more indebted and more leveraged," she said.

Goldboom said the RBC's analysis and prediction of moderate price increases took into account a slowing U.S. economy's effect on Canada. "We aren't forecasting outright declines in prices as we're seeing state-side," she said.

But Turner rolled off some troubling statistics, such as sales activity of resale homes in Canada falling six per cent in February -- although some critics have argued that blip could be due to stormy winter weather.

In his own riding of Halton west of Toronto, houses are staying on the market for up to 12 months and are falling in price, he said.

"Why you would want to be a new purchaser of real estate right now is beyond me," he said, adding that many young people have only known real estate to go up in value.

If you still want to buy a home, Turner makes the following recommendations:

"We're into the most incredible renter's market coming up. If you simply want to make money and secure your finances, you're going to rent, because renting is far, far less than the cost of owning right now," Turner said. "And it will remain that way for the next couple of years."

Source: CTV News

March 25, 2008 in Canadian Market Forecast | Permalink | Comments (2) | TrackBack

Tips for First-time Toronto buyers

If you’ve ever thought about owning your own home, now may be the time to take action. Lower interest rates combined with a growing inventory of homes for sale in the Toronto market may translate into a good opportunity for buyers in negotiating the terms of a sale with a seller.

The home buying process may seem daunting to someone who has never purchased a home before. But, through home buying educational seminars offered in your community, and with the assistance of an experienced loan officer, a first-time home buyer can obtain a better understanding of their financing options, leading to a more positive home buying experience.

Whether you’ve been dreaming of owning a home for years or you’ve just decided it would be a smart financial move to make, your first home buying experience will be a memorable one. It’s important to learn about your financing options in order to find the mortgage that’s right for you.

Here are some suggestions for first-time home buyers:

1. Educate Yourself About the Mortgage Process – By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It’s important to learn about different types of mortgages, how much you can afford, how your credit impacts your interest rate, and the benefits of home ownership.

2. Save Just a Little Bit More – It’s not only important to save money for the down payment and closing costs, but it’s important to factor in some of the other costs of home ownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that first-time home buyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses.

3. Check Your Credit – An individual’s credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a credit report from credit reporting bureaus such as Equifax. Carefully review your report and contact the credit reporting bureaus to correct any inaccuracies.

4. Shop Around for a Mortgage Lender – As you start thinking and preparing for the home buying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process is new, it's easy to go with the first lender, loan officer or mortgage broker you meet. Instead, take your time and shop around. Start by asking friends, co-workers and family members for recommendations. When you’ve identified two or three loan officers or mortgage brokers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you.

5. Get Pre-approved – Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a pre-approval credit decision. A loan officer will review your financial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you may be able to qualify, and, if qualified, "pre-approve" your mortgage before you've found a home. Armed with a mortgage pre-approval, you can start searching for homes with a much better idea of your price range, and in turn save time as you will know the right homes to focus on. Obtaining a pre-approval may offer more confidence and certainty to home sellers in your ability to purchase the home.

6. Don’t Be Afraid to Ask Questions – Once you’ve found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional should do in the home buying process. Throughout the process, read all loan documents carefully, and involve an attorney, if necessary.

7. Inspect – Before you commit to purchasing a home, don't forget to hire a professional home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and long-term home maintenance issues.

May your journey on the road to home ownership be a happy and successful one.

March 24, 2008 in Buying Toronto Real Estate | Permalink | Comments (1) | TrackBack

Tax-Deductible Moving Expenses

Have you moved recently? Do you know that you can deduct certain moving expenses on your next tax return, including transportation, packing and storage costs. Many people do not realize these tax benefits because they don't know what can be deducted.

If you are preparing to move, it's best to be informed beforehand so you know which receipts to keep. You may also find it worthwhile to pay for various services that are tax-deductible rather than doing them yourself.

The typical move involves a number of costs including hiring a company to transport personal effects and furniture, hotel stays and meals (if the move involves driving a long distance to a new home), and service fees to disconnect and reconnect utilities. In addition, renters who leave on short notice may have to pay the cost of breaking a lease.

Homeowners will incur closing costs and commissions on the sale of their home as well as legal and other fees on the purchase of their new home. This article will enrich your information about some tax deductible moving expenses.

To be able to claim moving expenses on your taxes, your move has to meet the following conditions:

Two groups are eligible to deduct a portion of their moving expenses: students moving away from home to attend school and people moving to a new area for a job or relocation by their employer. There has been a challenge to the rules regarding eligibility for the self-employed as you'll read later in this article.

Students

Students must fulfill two main qualifications: the distance between your home and school must be at least 40km (by the shortest public route) and you must be a full-time student. A full-time student is defined as someone who regularly attends a college, university, or other educational institution in a program at a post-secondary school level (whether in Canada or not) and is taking at least 60% of the usual course load during each semester.

As a student, you can only deduct eligible moving expenses from award income (scholarships, fellowships, bursaries, prizes, and research grants) that you report on your return. Your moving expenses must be greater than your award in order to deduct any moving expenses. As Revenue Canada's website reads, "If your moving expenses are more than the award income you report for the year, you can deduct the unused portion of those expenses from the award."

Although many students will not earn award income and will therefore not be able to deduct moving expenses, tuition fees themselves are a tax deduction. If a student has a part-time job, tuition can reduce taxes paid on those earnings. Students who meet the qualifications and have received award income can deduct the costs of travel, shipping and transportation of belongings, as well as items listed below under 'Expenses you can deduct'.

Employees

If you are moving for work (e.g. a company relocation or new job), are employed and establish a home at least 40 km closer to a new job than your old home, then you qualify to deduct moving expenses. Similarly, if you are self-employed, and you establish a home at least 40km closer to your new operational business than your old home, you also qualify to deduct moving expenses.

According to Revenue Canada, you must establish your new home as the place where you and members of your household ordinarily reside. For example, you have established a new home if you have sold or rented (or advertised for sale or rent) your old home.

Employed and Working from Home: an Exception to the Rule Until recently, employees who work from home and move have faced some restrictions regarding moving expenses. In the court decision Gary Adamson v. the Queen, Mr. Adamson had incurred moving expenses as an employee who was required to provide his own office in his home.

Expenses you can Deduct:

When your old residence is sold as a result of your move, eligible moving expenses also include:

Expenses that are not Deductible:

Remember to keep recipient and documents supporting your claims, you do not have to include those document in you tax claim but Canada Revenue Agency may want to see them at a later date.

Keep in mind that this article is for information only. The tax laws are frequently modified, we recommend that you visit the Canada Revenue Agency's website for specific details about which moving expenses you can claim or consult a professional accountant to maximize your tax return.

March 24, 2008 in Toronto Real Estate Taxes | Permalink | Comments (0) | TrackBack

Market value boosting renovations

Whether doing-it-yourself or hiring a professional, interior painting, hardwood flooring and kitchen upgrades are amongst the top equity enhancing home renovations.

With Spring here(?) in Toronto - the busiest time of the year for home sales - homeowners may want to consider tackling some simple home improvements that will ensure their properties sell for top dollar. The Royal LePage Renovations and Returns Survey examines some top renovations that bring the best return on investment.

"Amid today's competitive real estate market, renovations offer a relatively affordable means to boost the value of a home," said Lisa da Rocha, vice president, marketing and sales, Royal LePage Real Estate Services. "Do-it-yourself tasks such as painting walls, changing cupboard knobs or laying new flooring will make a house not only more appealing to buyers, but also offer a great return on investment."

With the expansion of renovation chains across the country, and the proliferation of do-it-yourself television shows, it is no surprise that homeowners are tackling renovation projects now more than ever. According to Statistics Canada, renovation spending grew by 8.3 per cent in the fourth quarter 2007 to $9.2 billion, from the same period in 2006.

Added da Rocha: "There are some renovations, such as finishing a basement that a homeowner does for their own enjoyment without much concern for the return on investment. What we have explored within this survey are renovations that are intended to translate directly into enhanced equity in a property."

Reasonable and Radical Renovations

From simple aesthetics to washroom overhauls, here are the top renovations that will increase the equity of a home. The list is ranked in ascending order of cost of project.

1. Freshen up:

Adding a new coat of paint can freshen up a house and make the interior look like new - not to mention more spacious. For homeowners looking to sell in the near term, neutral colours are most preferred.

2. Floors galore:

Today, hard surfaces are all the rage. If genuine hardwood exceeds budgets, laminate works well. Buyers like to see hard floors throughout, so if possible, be sure to lay down laminate in dining rooms and living rooms, and even in bathrooms and bedrooms.

3. Lighten up:

Old or standard-grade light fixtures, electrical and light cover plates can easily date a house. To modernize, add distinct flair to the interior, consider installing new light fixtures. Remember to go green, and use compact fluorescent (CFL) light bulbs, where possible.

4. Pebble Beach?

Well, close: The old adage, you never get a second chance to make a first impression is extremely true when it comes to selling a home. To increase curb appeal and entice buyers, ensure front lawns are tidy and gardening is minimal. While there is no need to go overboard and plant an expensive Japanese Maple, adding some standard shrubs and flowers will make a home more inviting.

5. Stylishly steel:

Similar to the issue with old light fixtures, knobs, fume hoods and backsplashes can make a kitchen seem outdated. Sleek, stainless steel hardware designs have the biggest and most positive impact on those people looking to buy a home.

6. Opening all the right doors:

An elegant entrance enhances a prospective buyer's first impression of the house itself.

7. ROI from the ground up:

To see an even higher return on investment, replace old flooring with new hardwood. While a range of qualities, textures and colours exist, it's best to opt for a neutral wood colour to accommodate the widest possible array of tastes and décor.

8. White picket fence?:

Building a fence and a deck instantly boosts a home's appeal. Keeping kids and pets in the yard, and nosey neighbours out, fences provide the back and side yards with a sense of being finished.

9. Occupied, no more:

A bathroom situated on the main floor is increasingly seen by homebuyers as an essential feature in their next purchase. While many older homes were built with bathrooms only on the second floor, many homeowners are resorting to transforming closets or adding new rooms to accommodate two-piece powder rooms.

10. Exquisite en suite:

Today's homebuyer prefers bathrooms that have spa-style tubs and modern faucets. Granite and marble tiles are now readily available and can be purchased at relatively affordable prices.

11. Everything, and the kitchen sink:

While prices can vary when renovating a kitchen, one thing is certain - updated kitchens bring one of the highest returns on investment. With homeowners spending more time in the kitchen than any other room, it's no surprise they want the best possible style and functionality. Stainless steel appliances, ceramic sinks and clean lines on cupboards rank as the more preferred finish options. Since kitchens and baths can be such a personal space, it's wise not to select a dramatic style or colour scheme since your tastes may not be the same as the next owner.

For more on increasing the equity in your home, see »

March 21, 2008 in Curb Appeal | Permalink | Comments (1) | TrackBack

Toronto Real Estate Board reports:

City's housing market down 18 per cent

Resale home transactions in the Greater Toronto Area continued at a moderate pace during the first half of March, Toronto Real Estate Board President Maureen O'Neill announced today. With 3,183 transactions to mid-month, sales in the GTA and in Toronto declined 14% and 18% respectively, compared to the same period a year ago.

"It's important to recognize that we have endured the snowiest winter since 1939 and this has undoubtedly affected the market," said Ms. O'Neill. "The storm that pounded the GTA during the second weekend of March likely had more people focused on shoveling sidewalks than house hunting."

Despite moderate activity, the value of homes in our city continues to appreciate. At an average of $385,405 in the GTA and $409,116 in Toronto, prices have increased five and four per cent respectively compared to a year ago.

As well, some neighbourhoods experienced an increase in activity during the first half of March.

At the North end of the Greater Toronto Area, Georgina (N17) experienced a 39 per cent increase in sales during the first half of March, driven mainly by detached home transactions.

The Agincourt area of Scarborough (E07) experienced a 12 per cent overall increase in sales compared to a year ago based primarily on strong condominium apartment sales.

Strong condominium apartment sales also allowed the Weston area in York (W04) to hold strong, with a 28 per cent overall increase compared to a year ago.

Toronto's Downtown core (C01) has also experienced healthy sales activity so far this month, due to strong condominium apartment sales as well. Overall sales in this area were up 11 per cent compared to a year ago.

"Condominium apartments have weathered the winter best so far this year, with 733 sales to date but we remain confident that once the snow has melted, we will see a very active spring market overall," said Ms. O'Neill. "The land transfer tax in Toronto concerns us and we continue to keep a watchful eye on how this tax plays out in the market."

March 19, 2008 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

Ontario Real Estate Market Watch

GTA and surrounding areas.

Toronto Real Estate Board Members recorded 6,015 resale home transactions last month, down 11 per cent in the Greater Toronto Area overall , 14 per cent in the City of Toronto and 9 per cent in the 905 suburbs compared to February 2007.

The average price increased 4% in GTA area and 2% in Toronto compared to February 2007. As well, the time on market in February was 30 days compared to 35 days a year ago.

However the number of properties available for sale has decreased seven per cent from last February, this indicate that there is no over-supply of homes on the market.

Despite the overall decline, some GTA neighbourhoods experienced strong sales in February, Sales in Pickering rose 28% overall compared to a year ago due to a strong increase in condo townhouse and condo-apartment transactions. and sales in Rexdale increased 18 %.

Hamilton-Burlington

The Hamilton-Burlington area real estate market reported a total of 828 unit sales in January, indicating an increase of almost one per cent over the same month last year. In addition, it is important to note that new units listed are over 15 per cent greater compared to January 2007.

Residential sales numbers where in line with those of seen in January 2007, and Commercial sales incresed 18% over last year. Average sale price of freehold properties increased 10% compared to January 2007.

Ottawa and surrounding areas

Members of the Ottawa Real Estate Board sold 654 residential units in January through the Board’s Multiple Listing Service® system compared with 764 in January 2007, a decrease of 14.4 per cent. There were 583 sales in December 2007.

The average price of residential properties, including condominiums, sold in January in the Ottawa area was $284,340, an increase of 9 per cent over January 2007.

Conclusion

While the numbers above indicate overall drop down in housing sales in Ontario, they also indicate a healthy real estate market in general. As predicted by the Canadian Real Estate Association, home sales are expected to level off to roughly 2006 levels this year, which was the second-strongest year on record.

Information in this report is collected from the Real Estate Boards operating in each area of Ontario.

March 19, 2008 in Canadian Real Estate Market | Permalink | Comments (1) | TrackBack

Gardening in the Toronto

Living in the city like Toronto need not translate to being out of touch with nature. Gardens make for peaceful havens in the midst of a big city's bustle. Don't let cramped living quarters or the lack of a large backyard stop you from exercising your green thumbs.

While Toronto may not be the ideal place for gardening, with a little guidance you can make the most of your limited space. The goal is to make small gardens seem larger, more livable, and more interesting.

Cover the perimeter of the garden with foliage. You can do this with bushy shrubs or a tall fence covered in creepers. It will create the impression that the garden extends further than it actually does.

Dividing the space with a latticework screen or a line of trees will make it look larger.

Keep it simple. Avoid using too many colours, as this will create a chaotic effect. Soft blues and lavenders create an effect of distance whereas reds, yellows and oranges will make your garden seem more crowded. Emphasize leafy plants; green is a soothing colour and will not overpower your garden.

A wide variety of plants can create an overwhelming effect in small gardens. You can have lots of plants in a small space as long as you limit yourself to a few varieties.

Trick the eye. Placing plants in strategic layouts can create an impression of depth. Graduating a line of the same species from tallest to shortest will do this. You could also place darker coloured, rough textured plants to the front and put light coloured, fine textured plants in the back. Mirrors will also create and illusion of depth.

Use small-leafed plants to give the illusion of spaciousness. Remember the plant doesn't have to be small - just its leaves.

Using climbing plants on fences and walls with increase the lushness of your garden without taking up space on the ground.

Avoid big, bulky plastic chairs and a large number of disparate garden decorations. Keep accessories to a minimum: choose one or two pieces that are unique and speak to your personal style. They will become the focal points of your garden.

Using potted plants in your garden will provide additional spaces for growing. Container plants can be hung from fences or placed on tables. If a plant requires lots of moisture, however, it should not be kept in a container as the soil dries out too quickly. Roses, trees, shrubs and vegetables usually grow well this way. The labels on the plants should indicate whether or not they are suitable to be left in containers.

Spring is just around the cornner ... so happy gardening.

March 17, 2008 in Home Maintenance Matters | Permalink | Comments (3) | TrackBack

Toronto commercial real estate

Toronto Real Estate Board reports 800,000 square foot month

In February, Toronto Real Estate Board Members reported 844,348 square feet of space leased through the TorontoMLS system, Commercial Council Chair Garry Lander announced today. "This figure is up marginally over January's 842,475 square foot total, and we should see those figures climb even higher as the IC&I Spring market gradually takes off." Lease rates remained relatively unchanged from their year-ago levels, with Industrial space trading for $5.84 sfn and commercial space going for $15.23 sfn.

Sales Market Highlights

In February, TREB Members reported 63 sales of IC&I properties. Of these, 38 were Industrial properties of all size categories, which averaged $109.38 per square foot. This compares with a price of $72.57 per square foot derived from non-MLS sources.

See copy of February’s Commercial Realty Watch.

March 15, 2008 in Toronto Real Estate Update | Permalink | Comments (1) | TrackBack

Housing affordability to improve

Affordability of homes is currently at worst level since 1990, says RBC Economics

For homeowners or those seeking to buy one, relief from deteriorating affordability of Canadian real estate is just around the corner, says a Royal Bank study, despite reporting the cost of owning a home reached its highest level since 1990 at the end of last year.

"We're forecasting both short-and long-term mortgage rates to fall further" in the months ahead, improving affordability in many areas of the country, Derek Holt, assistant chief economist at the Royal Bank, said in an interview Friday.

"The Bank of Canada should be cutting rates further as the year wears on, so that will bring variable rate products down further," he said.

"The longer-term five-year mortgage, we're forecasting that it'll drop by about three quarters of a percentage point by year end."

Back in the 1990s, housing affordability deteriorated across the country, with soaring interest rates and a recession sparking much of the trouble.

Last year, "a long upward trend in house prices driven by a strong economy that has seen growth in the job market" was the primary driver for deterioration in affordability, Holt said.

The affordability study, which measures how much pretax household income it takes to own a home, found that condos are the cheapest, needing 30 per cent of pretax income.

A townhouse takes about 34.5 per cent, a detached bungalow 42.5 per cent while a standard two-storey home required 48 per cent of pretax income.

Those costs rose everywhere in the country except in Alberta, where the cooling housing market saw costs of owning a home - such as servicing a mortgage, maintenance, property taxes - drop in all categories.

Also on Friday, the Canadian Real Estate Association released figures showing that MLS resale housing activity declined in February this year from January levels.

Seasonally adjusted MLS sales activity in the country's major markets edged down 6.4 per cent month-over-month to 26,588 units in February. The monthly decline largely reflected fewer sales in Toronto.

On the bright side, the RBC report says dropping mortgage rates, slower gains in house prices and income growth should improve affordability across most markets.

Vancouver was the most expensive market at about $650,000 for the standard two-storey home. That's defined to be the same benchmark at about a 2,200-square -foot home, two car garage in every region of the country.

Toronto comes next at $476,000, Calgary $462,000, Edmonton $354,000. In Atlantic Canada, the average price is $210,000.

In Alberta, where the housing market is cooling as scarcities in labour and supplies are addressed and people leave the province in search of jobs in other western provinces such as the oil fields in Saskatchewan, said Holt, the sales-to-listings' ratio has done an about-turn.

It "has gone from signalling very, very tight markets over the past couple of years to suddenly within the past six months or so markets with a fair amount of slack in them," he said.

In Calgary, for instance, the sales-to-listings ratio was 90-95 per cent at the peak in 2006, and then drifted down to about the 80 per cent mark in early 2007, said Holt. "Right now it stands just a hair over 40 per cent."

There's been a flood of new listings in the Calgary housing market and a curtailment of selling activity, he said. This has combined to lead to the fall in the sales-to-listings ratio. The story is similar in Edmonton.

"That's behind why we've seen price drops in an outright sense in the most recent quarter in those two markets," said Holt. "That helps out affordability."

As things stand now, said Holt, "it's a happy medium in terms of the balance of interests, because we think that sellers should retain most of the equity they built up over the last couple of years."

That also goes for people who have bought over the past few years and are just sitting on their homes, he said.

However, "it's a warning flag with just one quarter's worth of evidence so far, in what we're hoping is going to be a controlled cooling on their house prices."

So where are the most affordable places to live in Canada located?

"Classically it has always been Manitoba and the Atlantic provinces that have had the most affordable housing relative to local household incomes," said Holt.

The "most stressed points at the opposite end of the spectrum, without question, are Vancouver, Victoria and British Columbia," he said

The B.C. market has broken all-time records for the fraction of household income going towards home ownership costs in the three out of the four segments that the bank tracks, said Holt.

The one exception, he said, "has been condos that are the safety valve in this housing cycle expansion."

In the months ahead, Alberta, Calgary and Edmonton are likely to see the biggest swings in affordability.

"The charts that we run in our publication even within just one quarter showed a fairly sizable drop in the affordability ratios for Calgary and Edmonton," said Holt.

In the third quarter of 2007, to buy a standard two storey home in Calgary took up 47 per cent of the median household income in that city. Then one quarter later it was down to just over 45 per cent, said Holt.

"That's a fairly sizable swing within just a quarter," said Holt. "And I wouldn't be surprised to see it go down to the 40 per cent range by the end of this year with combined income growth but also potential for further slippage in prices."

March 14, 2008 in Canadian Real Estate Market | Permalink | Comments (0) | TrackBack

Enhancing curb appeal*

* the visual attractiveness of a house as seen from the street.

Job applicants are often advised to dress properly for that all-important initial interview. After all, they are told, you don't get a second chance to make a good first impression. The same holds true for people trying to sell their homes. Would-be buyers may not make up their minds based on curb appeal, but many don't even bother to come inside if they are turned off by how a house looks as they pull up to the front door.

In other words, all the emphasis on interior home staging — prepping a home's interior for maximum appeal — could be for naught if you ignore the home's exterior. You have only a few key moments to spark someone's interest, so it pays to put your best façade forward.

The good news is that you can beef up your home's exterior for less than $500 and a weekend's worth of time. And if you want to go whole hog by, say, replacing the siding, adding a porch or replacing your old, worn-out windows, you should be able to recoup most of your cost.

According to the 2007 "Cost vs. Value Report" from Remodeling magazine, a trade publication, the projects offering the greatest return on investment involved what could be called "curbscaping" — new siding, a deck and new windows. The payback for siding and decks was greater than that for remodeling a kitchen, and the payoff for replacing windows was just a few percentage points behind.

But you don't have to go to all that trouble to make your home's exterior more inviting. All it takes is a critical eye. In order to make a house appealing to prospective buyers, it is important to create attractive finishing touches that make it stand out from the curb.

For starters, take a step back. Walk across the street, turn around and look at your place from the wide view, searching for positive features that could be highlighted and negative elements that need to be hidden from plain sight.

At this point, it will help to take a photograph of your house, which can be used as a basis for the improvements you might want to make. But opt for black and white rather than color, the landscape designer suggests, because color can affect your perception of problem areas.

A fresh coat of paint is always a good idea. Nothing creates impact more than color. But because different people have different tastes, it's always a good idea to use neutral earth tones as the main color and stronger colors to accent, say, the doors and windows. Keep in mind, though, that two or three hues are usually enough to make a statement.

If painting the exterior isn't an option, painting just the shutters or front door to add a little pop. Or even the door and window frames.

The front door should be visible from the front street. If it isn't, consider adding an arbor or some other landscape element to point visitors in the right direction.

Because would-be buyers show up just as often after dark as in the daytime, replace your front-door light fixtures with new, brighter, shiny ones. Also, consider adding landscape lighting. And remember to keep them lit in the evening. You never know when a potential purchaser might drive by for a quick look.

If you have a front porch or stoop, clean or replace whatever furniture you might have out there, and put out some new throw pillows. Give visitors a place to stop and enjoy the front door.

Speaking of the front door, adding a new polished door-knocker is a good way to give your entryway a little character and charm. Accenting the doorway with decorative pots or planters also can add vitality.

If you have a garage, treat the doors in the same way. If they are in bad shape, consider replacing them. In some houses, garage doors take up half the front or more. The GarageWowNow.com website demonstrates how garage doors can spruce up curb appeal. And remember to keep the doors closed at all times so visitors will see the effect — not to mention to hide the clutter that is usually inside.

Don't forget the walk and driveway, either. They need to be clean and free of cracks. And put the kids' toys and the hose and other gardening tools away and out of sight.

Fresh grass or sod is another cost-effective way to dress up your home's exterior. Seeding is the least-expensive way to go, but it is more time-consuming than sod, if only because it could take several months for a mature lawn to grow in. Sod is a much faster way to go, but it is far more costly, especially if you have to hire someone to do the work.

Either way, though, make sure that you start the process long before your house is put on the market. The last thing you want visitors to see is a bunch of stakes and ropes that cordon off freshly planted areas and signs that warn folks to "keep off the grass."

Chances are you already have trees and shrubs, so you won't have to reinvest in those key design elements. If you don't, consider adding them. If you do, make sure they are trimmed and tidy. Fresh mulch will make them stand out even more, and remove dead leaves and debris that tend to detract from the overall effect.

If your house is going on the market in the growing season, adding flowers is another minimal investment with a maximum payoff.

Fences and gates are far more expensive, but they are an excellent way to frame your entire yard and set it apart from your neighbours. They also help differentiate between the public versus private areas of your home.

Before you start a project of this magnitude, though, it's always a good idea to reconfirm your property lines and clue in the neighbors about your plans. The last thing you want is to overstep your boundaries or anger the folks next door.

You can enhance your home's curb appeal almost instantly by:

For more ideas, see the Curb Appeals website »

March 12, 2008 in Curb Appeal | Permalink | Comments (1) | TrackBack

Virtual Curb Appeal

According to a recent survey by the National Association of Realtors, 91 per cent of home buyers used the Internet to search for available homes. If you’re a home seller, what does that mean for you? It means, that not only do you need traditional curb appeal, from the street, you need virtual curb appeal on the Internet. Buyers are making decisions on whether or not to even drive by you home based on how it looks on-line.

If you’re considering selling your house, one thing you might want to do is take a few pictures of the home yourself. Look at them through the eyes of a buyer. What do you see? Are they appealing enough to capture a buyer’s attention and compel them to look at your home?

Or if your home is sitting on the market with no showings, take a good look at the principal photo on the MLS. Does it look compelling? It may be time to re-assess your online curb appeal. The Internet is now the initial place you need to make good first impression.

March 11, 2008 in Curb Appeal | Permalink | Comments (1) | TrackBack

Family Fun in Toronto

This being spring break in Toronto, here is a list of places, published by where.ca, to keep kids of all ages — and their parents — amused.

0 TO 5 YEARS OLD

A DORA FIESTA Dora the Explorer and her cousin Diego are greeting their pint-sized fans at the CN Tower on March 8 and 9. After meeting these Nickelodeon superstars, more fun and games await with activity sheets and giveaways. Adults $21.49, seniors $19.49, and children (age 4-12) $14.49. 301 Front St. W., 416-868-6937.

FUN BOX Spoil your baby or toddler with a unique box of treats from Spotted Zebra. Known for its unique gifts, the store puts together a package that includes items like bibs, books and stuffed animals from popular children’s brands such as Dwell, Schylling and Alex. Open daily. 1062 Yonge St., 416-944-0251.

EE I EE I O Original puppets bring a classic childhood song to life on March 29 and 30 when the Solar Stage Children’s Theatre presents “Old McDonald Had a Farm.” Kid-friendly cushioned seats provide ample room for wiggling around. Tickets $13. 100 Upper Madison Ave., 416-368-8031.

PLAY HOUSE Children between the ages of one and six can “play house” at Mary’s Playland. Set up like a mini town, here little ones can stimulate their imaginations with trips to the pint-sized grocery store, beauty salon or auto-repair shop. The newly opened Tranquility Family Day Spa is perfect for parents in need of some R&R. $10 per child. Open daily. 2885 Bloor St. W., 416-236-KIDS.

BOOKWORMS At Mabel's Fables, the wonder of the written word is celebrated daily. Surrounded by cozy, starlit walls, kids can snuggle up for some cherished reading time. Explore the unknown with Canada’s newest favourite character, Scaredy Squirrel, in the latest book Scaredy Squirrel at the Beach ($16.95) by Mélanie Watt. Open daily. 662 Mount Pleasant Rd., 416-322-0438.

CLASSIC ITALIAN CUISINE For more than 35 years, The Old Spaghetti Factory has been offering customers a classic yet comfortable and family-friendly dining experience. Enjoy filling pasta options surrounded by the restaurant’s antique decor. An all-time favourite with kids is the classic spaghetti and meatballs dinner, which includes an appetizer, drink and ice cream ($5.99). Lunch and dinner daily. 54 The Esplanade, 416-864-9761.

6 TO 10 YEARS OLD

HAVE YOUR (CUP)CAKE AND EAT IT, TOO Drop by Lollicakes for a cupcake experience like no other. Baked fresh every day in a peanut-free kitchen, these delectable treats ($2 and up) combine the best of all sweet worlds from tasty frosting to hand-painted Belgian-chocolate toppers in an array of designs. Sunday to Friday. 559 Mount Pleasant Rd., 416-482-2253.

UPTOWN FUN One-stop shopping at Oink Oink is perfect for busy families. The shop carries trendy clothing lines like Burberry and DKNY as well as classic toy brands such as Lego and Brio. Open daily. 352 Eglinton Ave. W., 416-322-8255.

MAGICAL MARCH For an enchanting March Break, take the family to Wizard World, an indoor family fun-park extravaganza, from March 9 to 15. The entertainment is never-ending, with rides (all-day pass $15) and shows like Reptilia; plus the Poynters, Canada’s first family of magic. Admission $8; call 416-858-WAND for details. Exhibition Place, Better Living Centre, 416-263-3600.

NECTAR OF THE TREES Help the Kortright Centre for Conservation celebrate the 40th anniversary of the Sugarbush Maple Syrup Festival. The March Break program, which runs from March 10 to 14, includes wagon rides, sap and syrup samplings, as well as entertainment by Bubba the Clown and all-day crafts. Adults $8, seniors, students and kids $5, children age four and under free. 9550 Pine Valley Dr., Woodbridge, 416-667-6299.

GOLDILOCKS ROCKS Children’s entertainers Judy and David dazzle audiences with their show GoldiRocks at Mississauga's Living Arts Centre on March 12. A musical mix ranging from rock and roll to Gilbert and Sullivan show tunes, this lively update of the classic tale Goldilocks and the Three Bears is entertainment for the whole family that is just right. Adults $17, children $14. 4141 Living Arts Drive, Mississauga, 905-306-6000.

LUNCH IN THE JUNGLE Make lunch an Amazonian adventure at the Rainforest Cafe, where a gentle mist lingers in the air and exotic animals are tucked amid leafy decor. A variety of tasty themed menu options, from Jurassic Chicken Tidbits to Castaway Kids Pizza ($7.99 each), will please palates of all sizes. The entire family can dig into the famous Sparkling Volcano, a large chocolate brownie cake stacked with warm vanilla ice cream, whipped cream, and chocolate and caramel sauces ($14.99). Open daily. Yorkdale Shopping Centre, 3401 Dufferin St., 416-780-4080.

11 TO 17 YEARS OLD

SHOP ‘TIL YOU DROP The Toronto Eaton Centre is one of the busiest malls in Canada, and with four levels and more than 285 retailers, it’s no wonder! You won't go home empty-handed either. Drop by the Apple store (647-258-0801) and check out the latest in iPod technology, or visit Sephora (416-595-7227) for makeup from such coveted brands as Cargo or Juicy Couture. Open daily. 220 Yonge St., 416-598-8700.

IN THE DRIVER'S SEAT Boredom is highly unlikely at Playdium, Mississauga’s famous arcade, where there are more than 200 interactive games. Teens can get behind the wheel of a full-size Ferrari in Outrun 2 Deluxe, a one-of-a-kind virtual driving experience—no license necessary. Open daily. 99 Rathburn Rd. W., Mississauga, 905-273-9000.

SLAM DUNK Check out the NBA’s Toronto Raptors as they battle it out on the b-ball court at the Air Canada Centre. Have some time before the game? Head over to the Bank of Montreal Fan Zone and test your foul shot in one of the interactive displays. Tickets $25 to $925; call 416-366-DUNK to buy. Air Canada Centre, 40 Bay St., 416-815-5500.

ICE CAPADES Families shouldn’t miss out on a favourite winter tradition of ice skating at Nathan Phillips Square. No skates? No problem! Adults can rent skates for $9 while kids can get theirs for $7. 100 Queen St. W., 416-392-1111.

STYLE ME PRETTY For the latest in affordable teen fashion, head over to Forever 21 and browse through the stylish yet affordable assortment of blouses, skirts, accessories and much more. Get a jump start on spring with a ruffled floral top ($22.80) or a spring eyelet dress ($29.80). Open daily. 302 Yonge St., 416-260-9019.

SNACK TIME The relaxing and casual environment of Jack Astor's Bar and Grill is a perfect cap off for a day of shopping or sightseeing. Kids and parents alike can doodle on the paper tablebloths while pondering the menu options from pasta to pizza. And for a special treat, kids can enjoy the Sassafraz, a non-alcoholic specialty drink of fruit juices and Sprite ($2.99). Lunch and dinner daily. 144 Front St. W., 416-585-2121.

Have a safe and happy spring break Toronto.

March 11, 2008 in Toronto Landmarks | Permalink | Comments (0) | TrackBack

Fluffing time for Toronto real estate

The future looks bright for the emerging home staging business

For the last several years selling real estate in Toronto has been easy. Just post the listing on the MLS, wait three days and then consider the offers — most higher than the asking price. But now that the market's changing, things aren't going to be so easy.

Enter home staging. I used to think it was just a fad that would soon die out because in the extreme seller's market that Toronto has been experiencing, fluffing was so unnecessary. But not now. As selling a home becomes harder — and harder — it may come to a point where staging a house is something that is required when it´s time to sell.

Look what happened with "home inspections". Most people today wouldn't think of buying a home without having it inspected first. They want to make sure that the roof doesn't leak, the foundation is solid, the furnace works, and so on. However, there was a time when home inspections were new to the real estate industry and few people took advantage of them when buying. However, as more buyers began to see the benefits of having a home inspection, the demand grew, and now it's become an accepted practice. That's where I see home staging going in the coming buyer's market.

In fact, Debra Gould, Toronto's "Staging Diva", is already seeing this trend in certain neighborhoods in Toronto which certainly wasn't the case five years ago. In neighborhoods like Leaside, Riverdale and the Beach, a good percentage of sellers always stage their homes when they put them on the market. It's something they know they have to do to stand out from the competition. It's become part of the process of selling a home. That will eventually be the case in most locations, especially in major cities such as Toronto.

As more informed homeowners hire Real Estate Stagers and more buyers have the chance to view homes that have been staged, other home sellers will realize they too have to follow the practice. Otherwise their un-staged homes will look even worse by comparison.

You only have to look at prime time television to see further evidence of the design/decorating trend. There was a time when HGTV didn't exist, and even when it first started, it was fringe programming. Only certain kinds of people watched decorating shows, but now everybody watches.

Oprah is always talking about decorating and design. There are home makeover shows on prime time networks and there are thousands of decorating and home improvement magazines. More and more people are becoming aware of the difference it makes when things look good, and they aspire to live the trendy lifestyle they see portrayed in the media.

What does this all mean for the future of home staging? Well, if it's become a sought out service in Toronto's extreme seller's market, it will become mandatory as we shift into a buyer's market.

March 10, 2008 in Selling Toronto Real Estate | Permalink | Comments (1) | TrackBack

Is the 'real estate apocalypse' here?

Realtors are feeling a perceptible slowing in the market

The year has not started well for the Toronto real estate market. In figures released last week, a blustery February knocked existing home sales down by 11 per cent for the month, while residential building permits were down by a significant 47 per cent in January.

Growing uncertainty over the U.S. economy, where housing values have plummeted in some states, has also cast a long shadow over the Toronto market.

In conversations with realtors, economists and buyers, the Toronto Star found a growing unease over whether the good times can continue – and whether this year will mark a turning point.

"If the American economy continues to go down, the greatest risks to Canada are in the Greater Toronto Area since we do the most exporting to the U.S.," says housing analyst Will Dunning. "This is the great unknown."

See full story in the Toronto Star »

March 9, 2008 in Toronto Real Estate Update | Permalink | Comments (4) | TrackBack

Is your home inspector qualified?

Anyone can say he or she is a home inspector, but consumers have the option of hiring one who has been trained and tested.

Alan Carson says, "We believe you need a good, diverse broad background to be a home inspector." Carson is vice-president of Carson Dunlop Inspections. "It's like a doctor who's a general practitioner. You have to know all about the body. And when you see a problem you recommend a specialist. In home inspection, if someone works in one trade how will they know about others?"

Carson has written home inspection books for people who want to learn about the nuts and bolts of a house. He has also helped develop the home inspector course at Seneca College of Applied Arts and Technology that's also offered at 15 other Ontario Community Colleges.

Guy Battaglini, co-ordinator of Humber College's home inspectors course, says within the past 10 years a lot of people have discovered they have purchased homes based on unqualified people calling themselves home inspectors. He adds that they likely had no formal education or training to understand the different systems that comprise a home.

"In some cases, it might have resulted in buyers being upset because it cost them an additional $20,000 or $30,000 in further repairs," he says.

Many people get inspections done when they buy older homes, but having new homes inspected is increasingly common. Another growing trend among sellers is having an inspection done before putting the house on the market.

"We've seen that trend over the past five years and roughly 25 per cent of our inspection work is for sellers," Carson says. "We call them pre-listing inspections."

There are many advantages to this, he adds, for the buyer and the seller.

See story in the Toronto Star »

March 8, 2008 in Buying Toronto Real Estate | Permalink | Comments (2) | TrackBack

Property assessment freeze lifted

Are big tax increases coming for Toronto homeowners?

The end of a three-year assessment freeze could mean homeowners in some parts of the province may face double-digit hikes in property taxes. The provincial assessment freeze ended on January 1st. However, the Ontario government says it plans to spread out any assessment increases over the next four years.

The freeze was initiated following several complaints from property owners to the Ontario Ombudsman’s Office that the Municipal Property Assessment Corporation (MPAC) was conducting inaccurate and unfair assessments. Following an investigation, the Ombudsman’s Office made 20 recommendations for improvements to MPAC’s assessment system including changes to the way the Crown Corporation communicated with property owners.

As of the last report, the Ombudsman stated that MPAC had completed 10 of the 20 recommendations and was moving forward on the remainder. Among the completed recommendations is a revised brochure that is sent out with reassessment notices. This brochure now mentions how important it is that MPAC’s information be accurate and urges people to report any inaccuracies. It tells them clearly how they can review their assessment and look at up to 24 property comparable's, through a section of its Web site called “About My Property.” It also stresses: “If an error has been made, we will correct it. We are also happy to explain how we arrived at your assessed value and answer any questions.” Finally, it explains all the various ways you can complain about or challenge your assessment. In addition, the MPAC Web site now offers a lot more information about how properties are evaluated, and has posted many of its procedures online.

A new Property Taxpayer Web Portal is also being developed, through which owners will be able to access their Property Profile Report and comparables. The assessment notice form itself is also being redesigned for 2008. MPAC has done internal consultations, focus groups and property taxpayer customer interviews about this new form – but it is still reviewing it, because of the potential impact of the province’s new four-year reassessment schedule.

In the meantime, the revised assessment process is under way and property owners will be receiving their assessments in August and September. Current property taxes are based on market value assessments conducted by MPAC for January 1, 2005, and are determined by comparisons with the average city property value. If the estimated value of a property increases at a rate below the city average, the homeowner's property tax will decrease. If property value increases at a rate above the city average, the tax will increase. The reassessed values, with a valuation date of January 1, 2008, will apply to the tax years 2009 through 2012.

March 7, 2008 in Toronto Real Estate Taxes | Permalink | Comments (0) | TrackBack

Toronto Real Estate Market Watch

Sales Break 6,000 In Spite Of Winter Weather

While snow fell in almost record amounts, Toronto Real Estate Board Members recorded a respectable 6,015 sales during the month of February, TREB President Maureen O'Neill announced today.

"While sales were down over 2007 (11 per cent), they are in line with historical levels for the month, and they should increase substantially as the GTA eases into Spring."

Prices rose in February, with the average climbing to $382,048, up four per cent from the $367,687 recorded in February of last year. Days-on-Market stood at 30 days, and the list-to-sale price ratio was 99 per cent.

Activity within the City of Toronto generally matched that of the broader GTA. Sales moderated 14 per cent in the city to 2,310 from last year's figure of 2,697. Prices rose two per cent to $424,235.

Breaking down the total, 2,358 sales were reported in TREB’s 28 West districts and averaged $357,884; 1,017 sales were reported in the 14 Central districts and averaged $522,480; 1,185 sales were reported in the 23 North districts and averaged $409,155; and 1,455 sales were reported in TREB’s 21 East districts and averaged $300,975.

NEIGHBOURHOOD CORNER

Unionville

Of the ten sales recorded within Unionville (part of N11) so far this year, 7 were detached homes which sold for an average of $623,971. The other three sales were condominium townhouses, which averaged $333,700.

See Full Report »

March 5, 2008 in Toronto Real Estate Update | Permalink | Comments (1) | TrackBack

Bank rate cut again in March

The Bank of Canada cut its benchmark overnight lending rate by one-half of one percentage point to 3 1/2 per cent on March 4th, and signaled further cuts in the near future. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, now stands at 3.75 per cent.

The Bank warns: “there are clear signs that the U.S. economy is likely to experience a deeper and more prolonged slowdown than had been projected,” and, “deterioration in economic and financial conditions in the United States can be expected to have significant spillover effects on the global economy.”

“These developments suggest that important downside risks to Canada's economic outlook…are materializing and, in some respects, intensifying,” the Bank also cautioned.

The Bank repeated earlier statements that the domestic economy remains strong, while a high Canadian dollar and weakening U.S. economic growth is hurting exports.

“Our high dollar is keeping inflation in check, so the Bank of Canada is cutting its trend-setting bank rate to boost economic growth,” said CREA Chief Economist Gregory Klump. “Financial market turmoil will remain a downside risk to economic growth for some time, and the Bank all but said it will continue lowering interest rates.”

When the Bank decided to lower interest rates on March 4th, the advertised five-year conventional mortgage rate stood at 7.29 per cent. This is less than one per cent above where it stood at the beginning of last year. Competition among mortgage lenders remains stiff, which continues to help many borrowers negotiate discounts from advertised rates. However, fallout from the U.S. sub-prime mortgage debacle has tightened credit conditions in financial markets, resulting in smaller discounts off advertised mortgage interest rates.

Declining interest rates and a rebound in economic growth are factored into the CREA MLS® 2008 market forecast, to be issued later this month. “Sales activity will stay strong and reach the second highest level on record this year. Prices are also forecast to continue rising. Additional cuts to mortgage interest rates are good news for housing affordability and Canadian housing demand,” Klump added.

March 4, 2008 in Arranging Mortgage Financing | Permalink | Comments (3) | TrackBack

Toronto Commercial Realty Report

Ontario Strong Performer in Market Survey

As signs of economic weakness begin to emerge, Ontario property types emerge as Investor favorites, occupying 8 of the 15 top spots in the Altus Insite Product/Market Barometer. This quarter's barometer demonstrates a "flight to quality", with class "A" office and good quality industrial and retail being prominent choices amongst the top 15 product/market combinations chosen.

See full report »

March 4, 2008 in Toronto Real Estate Update | Permalink | Comments (0) | TrackBack

First-time home buying 101

Buying Real Estate in Toronto — Made Simple

Once you have decided it is time to purchase your first home, you should decide what you can afford. Getting pre-qualified for a loan is the best way to determine this. To get pre-qualified, you should work with a lender that you have a good relationship with, or you can search for banks, mortgage lenders or mortgage brokers online.

Ideally, your total monthly mortgage payment should be less than a third of your monthly gross income. There are many special options available for first-time buyers, such as mortgage programs that require low or even no down payments and no closing costs. You should try to make your down payment as big as possible, because this means you will be borrowing less money and your mortgage insurance costs less, making your mortgage less expensive in the long run. Also, remember that you can usually negotiate your mortgage rate 0.5 to 1 percent lower than the posted rate.

Next it is time to decide what you want in a home and neighborhood. Consider the wide range of options from condos to large houses. If you have a hobby, work from home, or are starting a family, you should consider the extra space requirements. Ask yourself if certain features like large front and back yards, parking, garages, or energy efficiency are important to you. If you would like to rent out part of your house to help with the mortgage, you should look for a home with separate entrances or a finished basement. Once you have determined what type of home you are looking for, find an agent that you feel comfortable working with and who listens to you.

When choosing a neighborhood, consider your needs and wants. Research every aspect of a neighborhood. Find out the proximity of hospitals, emergency services and schools. If you have children, you will want to know about the quality of the schools in the area. Consider your transportation needs. Think about how long a commute is acceptable to you. Are there nearby highways, or public transit that would make your commute easier?

If religious institutions, shopping, dining and entertainment are important to you, get to know the area well, and figure out if it offers what you are looking for. Spend some time in the area at night to find out if you feel safe, and how noisy it is. Also consider property values and property taxes in the neighborhood. Can you afford it? A good real estate agent will be able to provide all this information and more about the neighborhood you are interested in.

Even if certain amenities such as quality schools are not important to you, you should still consider them in your purchase, as they will affect the price you get when you are ready to sell your home. When choosing a home, don’t buy the most expensive home on the street. You are much better off buying the least expensive home in a more expensive neighborhood. If you have narrowed down your search to particular homes, try to observe the neighbours. Do they have frequent loud parties late at night? Do they blast the music on weekends? Do they keep their front yards presentable and clean?

Before you put in an offer on a home, be sure to have it inspected by a qualified home inspector, regardless of the age of the home. A thorough inspection should uncover any safety issues, water infiltration, electrical problems, plumbing problems, roofing problems or structural problems. If problems are found, you may want to ask for a reduced price, or continue your search. A good real estate agent will often recommend a trustworthy home inspector.

When you get your mortgage, you will require homeowners insurance. Shop around to find a policy that meets your needs while being affordable. It is definitely worth spending some time researching different policies to find the right one for you.

When you are ready to put in an offer on a home, it should be lower than the seller’s asking price, but within reason. Too low an offer will be insulting to the seller and they will respond with a less favorable counter-offer. A good real estate agent will no what comparable homes in the area have recently sold for, and help you determine what the fair value of the home is. If the asking price seems reasonable, make your sure your offer is within the "market zone" for that type of property. The seller will then be likely make a more reasonable counter-offer.

It is commonplace to have each party’s lawyer review offer documents to ensure that both the buyer's and the seller's best interests are legally protected. And it's always helpful to hire a real estate agent you can trust, so your home purchase will go smoothly and you can focus on enjoying life in your new home.

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

Curb Appeal Rules

Make that initial glimpse memorable.

For a fresh perspective on the value of your home, walk across the street, turn around and take a good look. Ask yourself, "Does my house have curb appeal?"  Does your home look attractive, welcoming and well maintained at first glance?  What could you do to make it look better?

Make a list of ways to enhance the positive and eliminate the negative. If you have a nice walkway, accentuate it with flowers or lanterns. If the first thing a visitor sees is your big wide garage, try to guide their eyes into beautiful front yard landscaping, or paint your front door red to guide the eye there. Nothing adds value more than those things that make people say "looking good".

Take a digital photo of your home and look at it in black and white. When the color is removed, the truth comes out. That is where you see the cracks, the warts and the glaring flaws.

Always keep things clean and tidy. And talk to your neighbours because curb appeal doesn't stop at your property line. Your home will be more valuable if you live in a place where everyone pays attention to appearance.

Host a neighborhood cleanup party. Compete with neighbours to see who can do the best job of making their home look better.  By adding curb appeal to your home and your neighbours homes, you can boost property values all over the neighbourhood.

March 3, 2008 in Toronto Curb Appeal | Permalink | Comments (1) | TrackBack

American home prices tumble

Freefall continues and likely to impact the Canadian market.

Across much of the United State, home values are dropping – even those backed by solid mortgages – and banks are repossessing more every day. Most experts say the dive won't hit bottom for another year and only after excess inventory is sharply reduced and credit markets improve.

"The housing value crisis is spreading and deepening," said David Abromowitz, a senior fellow at the Center for American Progress. "It has gone way beyond sub-prime borrowers stretched too far with bad loans and now has clearly extended into the housing markets more broadly."

U.S. home prices dropped 8.9 per cent in the final quarter of 2007 compared with a year ago, according to the Standard & Poor's/Case-Shiller home price index released earlier this week. That marked the steepest decline in the index's 20-year history.

"We reached a sombre year-end for the housing market in 2007," said Robert Shiller, one of the architects of the S&P/Case-Shiller index. "Home prices across the nation and in most metro areas are significantly lower than where they were a year ago. Wherever you look, things look bleak."

Many observers of the Canadian marketplace believe that our real estate market, particularly in the Toronto area, will soon follow the current trends in the United States.

March 2, 2008 in World View [of real estate] | Permalink | Comments (4) | TrackBack