Toronto West Homes Information

GTA Resale Housing Continues Steady Pace

2008-06-22T18:20:00.000-07:00

TORONTO, June 18, 2008 -- The Greater Toronto Area (GTA) resale housing market continued at a moderate but healthy pace throughout the first half of June, Toronto Real Estate Board President Maureen O’Neill announced today.
Prices continued their upward trend in the first half of this month. The GTA average price is currently $398,542, up four per cent over the $384,576 average from the same timeframe a year ago and up 11 per cent from the $358,648 recorded at mid-June 2006.

In the City of Toronto the current average price is $439,469, up three per cent over the $424,888 average a year ago and up 14 per cent over the $386,960 average in the first half of June 2006.

“With employment and interest rates holding steady and a 17 per cent increase in available listings compared to a year ago, it is an ideal time to take advantage of all that the market has to offer,” said Ms. O’Neill.

Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-ofthe-art Multiple Listing Service. Serving over 27,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.

Housing Starts to Slow in 2008

2008-05-25T05:44:00.000-07:00

OTTAWA, May 15, 2008 — New home construction will begin to slow in 2008, but remain high by historical standards, according to Canada Mortgage and Housing Corporation’s (CMHC) second quarter Housing Market Outlook, Canada Edition report.

Existing home sales, as measured by the Multiple Listing Service (MLS®)1, are expected to fall by 8.5 per cent in 2008 to 475,900 units. In 2009, the trend will continue with a decrease to 465,000 units (-2.3 per cent). Despite a slowdown of MLS® sales, demand remains strong by historical standards. For 2008 and 2009, MLS®price growth will remain above inflation. Prices will reach $323,000 (+5.1 per cent) in 2008 and $333,500 (+3.3 per cent) in 2009.

The Ontario economy is expected to improve slightly during 2008 and this will help sustain housing demand across the province. New home construction activity will be moderate between now and the end of 2008. Housing starts will move up to 72,175 units in 2008 from 68,123 units last year given an increase in new condominium projects; however starts will decrease to 65,000 units in 2009. The average MLS® price in Ontario rose by 7.6 per cent in 2007. For 2008 and 2009, the increases will be more modest at 3.5 per cent and 2.4 per cent respectively.

Canada Mortgage and Housing Corporation (CMHC)
For more information, call 1-800-668-2642.
1 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).

Information on this release:
Kristen Scheel Media Relations  CMHC T elephone: 613-748-4632

GTA resale housing market moderate in April, but prices up

2008-05-19T04:47:00.000-07:00

TORONTO, May 5, 2008 -TREB
With 8,762 houses sold in the Greater Toronto Area, April’s resale housing activity was down seven per cent from the record 9,452 transactions from the same timeframe a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.
“The market is showing signs for a healthy 2008 compared to the diminished activity we saw in the first quarter of the year,” said Ms. O’Neill. “We continue to experience a supply and demand situation and to-date, it remains a sellers market."
Sales activity however, was markedly different in the 416 and 905 regions. With 3,467 transactions in the City of Toronto, sales were down 10 per cent from a year ago. The 905 region was down five per cent from April 2007 sales, with 5,295 homes changing hands.
April’s GTA average price was $398,687, up five per cent from the same period a year ago. In the City of Toronto, the average price was $446,781, up six per cent from last April. In the 905 region the average price increased five per cent compared to a year ago, to $367,196.
Several neighbourhoods experienced strong sales in April.
Scarborough East (E08) saw an five per cent overall sales increase compared to April 2007, driven by robust detached home sales.
Caledon (W28) experienced a 15 per cent increase compared to the same timeframe a year ago as a result of strong condominium sales.
Condominium sales also drove Willowdale (C07) to a 32 per cent increase from a year ago.
In Thornhill sales increased eight per cent from last April due to strong detached home sales.

“The number of listings on the Toronto Real Estate Board’s Multiple Listing Service has increased to 24,539, up seven per cent from a year ago, which is good for homebuyers, who will find a greater range of options in the market,” said Ms. O’Neill. “With prices continuing to appreciate and increased listing inventory there are favourable factors in today’s market for consumers.”

More Balanced Resale Housing Market in this Apri

2008-05-19T04:36:00.000-07:00

OTTAWA – May 14th, 2008 – Canadaian Real Estate Association
The number of new listings of homes for sale on the Multiple Listing Service® (MLS®) in Canada's major markets reached its highest level ever in April 2008, according to statistics released by The Canadian Real Estate Association (CREA). The rise in new listings outpaced a small gain in sales activity, resulting in a more balanced market.

The number of newly listed properties on the MLS® systems of Canada's major markets numbered 52,775 units on a seasonally adjusted basis, up 1.8 per cent from the previous month. Actual (unadjusted) new listings were up 17.7 per cent from April 2007.

The new record resulted largely from unprecedented numbers of new listings in Toronto and Saskatoon. The rise in new listings in these markets more than offset a decline in new listings in Edmonton and Calgary, where new listings retreated from record levels reached in March.

Seasonally adjusted MLS® sales activity in Canada's major markets edged up 0.8 per cent month-over-month to 27,039 units in April. The small monthly gain resulted from rising activity in Quebec City, Toronto, Winnipeg, Halifax-Dartmouth, Hamilton-Burlington, St. Catharines and Newfoundland & Labrador. Activity gains in these markets offset fewer transactions in Vancouver, London & St. Thomas, Calgary and Victoria.

New listings rose by more than sales activity, resulting in a more balanced resale housing market this April than in any other month in the past nine years.

"This means buyers face less competition in their search for a home," notes Calvin Lindberg, President of The Canadian Real Estate Association. "It also means more competition among home sellers, so presentation factors such as prudent pricing are necessary for faster sale. That is expertise a REALTOR® can provide."

A surge in new listings caused the resale housing market to become significantly more balanced in Regina and Saskatoon. By contrast, strong sales activity caused the resale housing market to tighten in Thunder Bay and in Newfoundland & Labrador. These areas and Winnipeg were the three tightest major markets in April. Edmonton, Calgary and Windsor remain the most balanced of Canada's major markets.

The major market MLS® residential average price rose 3.2 per cent year-over-year to $334,293 in April. This is the smallest year-over-year price increase in over six years, and again reflects a more balanced housing market.

"An increase in listings is resulting in a more balanced resale housing market in Vancouver, Calgary, Toronto and Montreal, the four most active of Canada's major markets," said CREA Chief Economist Gregory Klump. "New listings are forecast to rise further as sales activity continues retreating from the peak last year, resulting in an increasingly balanced resale h

CANADA’S HOUSING MARKET REMAINS STABLE;

2008-04-03T23:17:00.000-07:00

TORONTO, April 3, 2008 - Strong local economies and population growth support buyer demand

TORONTO, April 3, 2008 – Canada’s real estate market stands on stable footing. On average, healthy year-over-year house price gains were recorded during the first three months of 2008. While more modest price increases were observed when compared to previous quarters, the solid appreciations noted in the first quarter are largely due to the shared effects of resilient local economies, high immigration levels, and relatively low interest rates – all leading to enduring buyer demand, according to a House Price Survey report released today by Royal LePage Real Estate Services.

Average house prices increased in Toronto and Montreal during the first quarter, while unit sales activity dipped from the same period last year. While there was a decline in unit sales volumes, the current activity levels in both cities are amongst two of the best first quarters on record for Toronto and Montreal.

It is worth noting that record snowfall in Central Canada and Quebec left many city streets and sidewalks virtually inaccessible to potential homebuyers during the first quarter. As a result, many sellers held off listing their homes, choosing to wait for more conducive weather for open houses and viewings.

In Toronto, persistent buyer demand and limited inventory levels continued to pressure prices upward in the first quarter; however, activity levels were slightly down. Record snowfall in Toronto left many city streets and sidewalks virtually inaccessible to potential homebuyers during the first quarter. As a result, many sellers held off listing their homes, choosing to wait for more conducive weather for open houses and viewings. While Toronto’s real estate market performed a little slower than expected during the first quarter of 2008, it is likely to gain strength as it moves into the busy spring season. Despite decreased overall activity, some of the city’s neighbourhoods still received significant buyer interest, often resulting in multiple offer situations for well-priced, well-situated homes.

Helping fuel Canada’s housing market is its status as having the fastest population growth amongst the G-7 countries. This is a stabilizing force within the Canadian housing market and is critical for price appreciation in the longer term. Canada continues to attract a high number of skilled immigrants; while immigrants have typically gravitated to larger cities such as Vancouver, Montreal and Toronto, trends now illustrate that secondary cities requiring skilled workers are regarded as home to many newcomers.

In addition to steady population growth, the structure of Canada’s financial services industry, and the lending products they provide, has buffered the country from the credit issues that currently exist within the U.S. housing market.

“Canada’s housing market remains on solid footing. With the notable exception of a handful of small western cities, the country has returned to an environment characterized by moderate house price increases,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “These conditions are far more agreeable to those searching for a home, and are more sustainable in the long term than the sharp price increases recently experienced.”

Competing Offers

2008-03-30T14:59:00.000-07:00

In certain market conditions, consumers may find that more than one buyer is interested in a property. This is a competing offer situation and creates unique conditions in a real estate transaction. Both sellers and buyers need to consider how to respond when presented with a competing offer situation. Working closely with your real estate broker or salesperson will ensure that you understand the process.

In Ontario, the seller's real estate broker or salesperson is required to disclose the number of competing offers to all buyers who have submitted a written offer. However, the terms and conditions of each offer are confidential to the seller and their broker or salesperson.
Working with a real estate broker or salesperson

The seller's real estate broker or salesperson represents the interests of the seller in the transaction. The decisions about how offers are presented and responded to, as well as which offer is accepted, are made by the seller.

The buyer's real estate broker or salesperson represents the interests of the buyer in the transaction. The buyer makes the final decisions related to their offer, including the important decision of whether or not they want to participate in a competing offer situation.

In some situations, the real estate broker or salesperson will represent the interests of both seller and buyer or multiple buyers. Consumers should seek guidance from their real estate broker or salesperson if this situation arises.

Tips for Buyers

In a competing offer situation, buyers may be tempted to offer more for the property than they planned to and/or remove conditions from offers that are intended to protect them.

Before participating in a competing offer situation, buyers should consider factors such as:

Offer Price
How much can the buyer afford to offer for the property and how much is the property worth? A high offer could enhance the buyer's chance of success. However, it may not be the best long-term financial decision for the buyer. A competing offer situation does not necessarily mean that a property will sell for more than the asking price. Similarly, an offer that meets or exceeds the asking price will not guarantee that a buyer's offer is accepted.

Financing
Buyers should be aware that pre-qualifying for a mortgage does not safely eliminate the need for a financing condition in an offer.

Home Inspection
In competing offer situations, it can be tempting not to include a clause in an offer that makes it conditional on a home inspection. While your offer might be more acceptable to the seller, you may later learn that there are property defects, required repairs or needed upgrades that you weren't aware of. In some cases, this can be expensive in the short or long-term. Foregoing a home inspection is a significant risk that a buyer needs to carefully consider.

Tips for Sellers

A seller facing competing offers has to consider how they want to deal with the situation. The seller can decide to: accept the best offer; negotiate with one buyer and reject all other offers; negotiate with one buyer and advise other buyers that their offers are being set aside while the seller negotiates; or reject all offers.

Even in a competing offer situation, buyers have other options and may choose not to continue to participate. A seller may attempt to negotiate only to find out that it was the best offer the buyer could present. In the meantime, other buyers have found new properties they are interested in.

The seller's real estate broker or salesperson can provide advice and guidance, ensuring that the obligations and the options available are understood.

Real Estate Council of Ontario

Resale Home Prices Are Increasing Even As Sales Voumes Are Lower From Last Year

2008-03-21T06:12:00.000-07:00

Toronto Real Estate Board

March 19, 2008 -- 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 ONeill announced today.

With 3,183 transactions to mid-month, sales in the GTA and in Toronto declined 14 per cent and 18 per cent respectively compared to the same timeframe a year ago.

Its important to recognize that we have endured the snowiest winter since 1939 and this has undoubtedly affected the market, said Ms. ONeill. 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. ONeill. 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.

Creating Curb Appeal

2008-02-24T05:23:00.000-08:00

They say you can’t judge a book by its cover. But when it comes to houses, the exterior can be just as important as the interior if selling or buying.

When selling, it is the outside, or the home’s curb appeal that often determines whether the inside is ever seen. How a house 'shows’ from the street can tell a potential buyer a lot about what it may be like inside. Even if the inside is the sparkling, charming, structurally sound dream home they’ve been searching for, a buyer is not going to forget a cracked driveway, fallen shutters, overgrown grass and flower beds.

That’s why most REALTORS recommend a house not be seen for the first time at night. If you have no choice but to view homes at night, always be sure to drive past them during the daytime before making any final decisions.

For sellers, there are many ways to enhance the exterior of a home to achieve the curb appeal necessary to attract prospective buyers. Start by taking a close, objective look at your home from the curb. Be sure to view it from different angles. Ask friends and neighbors for their unbiased opinions. What are the appealing features? What’s not so appealing? What can you do to improve its appearance?

Are the shrubs untrimmed? Are there broken doors and windows, loose screens and railings? Does the exterior trim, or entire surface, need a paint job?

The interior may be clean, without a leaky faucet, cracked floor or loose door hinge in sight. But if the exterior roof, gutter, walls, driveway, garage and yard look dirty and untidy, chances are you’re not going to get a lot of potential buyers knocking at the door.

Creating curb appeal is making your home inviting from the outside -- where first impressions begin. This doesn’t mean spending a great deal of money remodeling and renovating. Adding a new front verandah might add a lot of curb appeal, but so will a couple of wicker chairs and potted flowers by the front door - at a lot less cost.

Here are some more tips for making the outside of your home attractive and inviting:

Clean up the yard Mow the lawn, trim the hedges, weed the flower beds, get rid of dead trees and shrubs; get rid of any broken lawn furniture; shovel the walk and driveway in winter; rake the yard in the fall.

Repair any problems If the roof is damaged, repair it. Also repair any doors and windows that have loose hinges or other damage; fix storm doors and window screens; caulk window exteriors; clean and repair sidings and other structural flaws.

Eliminate clutter If you have yard and construction debris piled up along the side of the house, or elsewhere, get rid of it. The exterior of your home should be as uncluttered in appearance as the interior. This includes cleaning out the garage - a major breeder of clutter. Be ruthless. If you haven’t used something in a year, give it to charity or recycle it.

Give siding a fresh new look Cleaning the exterior surface is all your home may need for a fresh new face. Before rushing to paint siding, try washing it. For painted wood siding and aluminum siding, use a solution of one cup strong detergent and one quart chlorine bleach in three gallons of water. Be sure to wear rubber gloves, goggles and other protective garments. Work from the bottom up and rinse thoroughly.

To spruce up vinyl siding, hose it down, sponge it with a mild liquid detergent and rinse.
Use paint to brighten, re-proportion exterior A paint job can do wonders for the exterior of a home. A low house can look more graceful and tall from the curb by emphasizing its vertical features. Paint elements such as doors, shutters and corner trim in a color that contrasts with the siding material or color. On a high home, emphasize horizontal by using a contrasting paint color on window sills and fascia boards. You can also make a tall house look lower by painting it a dark color, provided that the roof is dark too. Conversely, a light color will make a home look larger.

Co-ordinate the exterior 'look’ The more co-ordinated your house looks from the outside, the more appealing it will be. Co-ordinate the 'look’ of your home by painting the garage, tool shed, playhouse and other outdoor structures with the same color schemes as the house. If your house is a mixture of conflicting textures - vertical siding, shingles and brick, for instance - try painting them all the same color, or in two related shades of the same color, to create a harmonious look. Dark tones work best when working with conflicting textures.

Use flower power Well-placed flowers, trees and shrubs can really make the outside of a home look inviting. Not only does attractive landscaping invite buyers, it can increase the value of a home. Even without major landscaping, flowers can make a yard look colorful and pleasant. Plant them in garden beds, hang them from railings and porch ceilings, add flower boxes to window sills. There is no limit to the power of flowers.
At night, highlight garden features with spotlights and floodlights. Well-lit paths and entrances promote safety, discourage burglars and are an added feature to any home. A pretty wreath on the door and a welcome mat will finish things off.

Toronto Real Estate Board reports sales near 3,000 at mid-month

2008-02-23T16:44:00.001-08:00

February 20, 2008 -- 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.

“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.”

What is Knob and Tube Wiring?

2008-02-17T05:12:00.000-08:00

Knob and tube wiring was an early standardized method of electrical wiring in buildings, in common use in North America from about 1880 to the 1930s. It consisted of single insulated copper conductors run within wall or ceiling cavities, passing through joist and stud drill-holes via protective porcelain insulating tubes, and supported along their length on nailed-down porcelain knob insulators.

Elements
The ceramic knobs were cylindrical and generally nailed directly into the wall studs or floor joists. Most had a circular groove running around their circumference, although some were constructed in two pieces with "pass-through" grooves on each side of the nail in the middle.
By wrapping electrical wires around the knob, and securing them with tie wires, the knob securely and permanently anchored the wire. The knobs separated the wire from potentially combustible framework, facilitated changes in direction, and ensured that wires were not subject to excessive tension. Because the wires were suspended in air, they could dissipate heat well.
Ceramic tubes were inserted into holes bored in wall studs or floor joists, and the wires were directed through them. This kept the wires from coming into contact with the wood framing members and from being compressed by the wood as the house settled.

Capacity
Although these installations were adequate for the electrical loads at the time of installation, modern households use a range and intensity of electrical equipment unforeseen at the time. Homebuyers often find that existing K&T systems lack the ampacity needed for today's levels of power use. As household power use increased following the Second World War (because more appliances per household were being plugged in), first-generation wiring systems became susceptible to abuse by homeowners who would avoid repeatedly blowing fuses by overfusing the circuits, thus subjecting the wiring to heat damage due to higher levels of current.
Deterioration or abuse may have rendered it unsafe
Knob-and-tube wiring may also have been damaged by building renovations. Its rubber insulation will be dried-out, thus brittle when handled, or it may have been damaged by rodents or carelessness (for example, hanging objects off wiring running in accessible areas like basements).

Covering K&T with thermal insulation is unsafe and prohibitedsed). As a result, energy efficiency upgrades that involve insulating previously uninsulated walls usually also require replacement of the wiring in affected homes.

Insurance
As existing K&T wiring gets ever older, many insurance companies may deny coverage due to increased risk. Several companies will not write new homeowners policies at all unless all K&T wiring is replaced or an electrician or an approved home inspector has certified that the wiring is in good condition.

GTA Resale Housing Market Solid in January

2008-02-14T16:09:00.000-08:00

TORONTO, February 5, 2008

January’s Greater Toronto Area resale housing market came within two per cent of a record performance for the month, Toronto Real Estate Board President Maureen O’Neill announced today.
A total of 5,073 properties changed hands last month, compared to the record 5,173 sales that took place in January 2007.
“This is a very positive start to the year but we will be watching closely to see how the City of Toronto’s new land transfer tax and a proposed property tax increase affect the market,” said Ms. O’Neill.
The average price, which currently stands at $374,449, rose six per cent compared to January 2007.
The strongest activity last month took place in Toronto’s Central and East districts.
The Danforth (E03) experienced a 30 per cent increase in transactions compared to last
January, driven by strong sales in all housing types.
In West Agincourt (E05) 32 per cent more homes changed hands, primarily as a result of a surge in condominium apartment sales.
Strong condominium apartment sales also lead the Downtown Core (C01) to a 19 per cent overall increase in transactions compared to a year ago.
North York Willowdale (C07) also saw a 19 per cent increase in sales, due in large part to condominium apartment transactions as well.
“While we are optimistic that the market will remain healthy throughout 2008, we recognize there are threats such as a U.S. economic slowdown and a land transfer tax in the City Toronto,” said Ms. O’Neill. “Like other levels of government, municipalities should be considering options to help off-set these risks. TREB plans to be a strong voice for REALTORS® and homebuyers as GTA municipalities, particularly the City of Toronto, debate their budgets.”
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service. Serving over 27,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.

Canadian Housing and Mortgage Corporation Predicts 7.6% growth for Ontario

2008-02-05T04:30:00.000-08:00

Ottawa, February 4, 2008

The Ontario economy is expected to improve slightly during 2008 and this will help sustain housing demand across the province. New home construction activity will be moderate between now and the end of 2008. Housing starts are expected to move up from 68,123 units in 2007 to 69,150 units in 2008, while a more modest economy in 2009 will push starts down somewhat to 67,150 units. The average MLS® price in Ontario will rise by 7.6 per cent in 2007, while 2008 and 2009 should see increases of 6.2 per cent and 2.9 per cent, respectively.

As Canada's national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on over 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

A CMHC press release.

Canadian residential real estate future is solid

2008-01-30T03:13:00.000-08:00

Canadian residential real estate future is solid

OTTAWA – January 23, 2008 – The Canadian housing market in 2007 set a number of MLS® sales records, and the re-sale housing market is expected to remain at near record sales levels in 2008, according to The Canadian Real Estate Association.
Annual residential MLS® sales activity totaled 520,747 units in 2007, up 7.6 per cent from 2006 levels. This was the largest annual sales growth since 2002, and the first time transactions via the MLS® systems of real estate boards in Canada have surpassed 500,000 units sold in one year.
“The results in 2007 show the strength and the affordability of the Canadian residential market,” says CREA President Ann Bosley. “The statistics again show just how different the housing markets are in Canada and the United States.
Canadian REALTORS® know that Canadian mortgage lenders correctly see that home prices will continue rising. We know there is still strong competition for mortgage business in Canada.”
Three key economic ingredients will keep Canada’s housing market on a different track from the United States. One is consumer confidence, the second is employment, and third is affordable interest rates. The Bank of Canada cut interest rates on January 22nd because of weaker prospects for Canadian economic growth in 2008. “Those lower interest rates will also help temper the erosion in housing affordability due to additional home price increases,” Bosley added. The Bank of Canada is expected to cut its trend-setting rate again in March.
CREA’s Chief Economist Gregory Klump says that the Canadian housing market in 2008 will pull back from the breakneck pace set in 2007, but this is still forecast
to be the second-busiest year on record in almost all provinces, with residential unit sales reaching an estimated 512,705 units.
Average prices for MLS® home sales are expected to keep setting records in 2008, although prices will increase more slowly as the market becomes more balanced. In most provinces, the market will nevertheless remain historically tight – with the tightest markets being in Saskatchewan and Manitoba. Nationwide, the
average residential price is forecast to increase 5.5 per cent to about $322,700. According to CREA’s Chief Economist, a larger supply of listings will be one of the balancing influences in 2008. New listings are forecast to rise in all provinces except Alberta, where they’re expected to retreat after spiking in late 2007.

“The challenge for the Canadian housing market will be the extent to which employment and consumer confidence may be affected by a slowdown in the U.S. economy,” Ann Bosley adds.
“Slower job growth, not massive layoffs, are forecast for Canada in 2008,” CREA’s Chief Economist Gregory Klump adds. “Consumer confidence may be sideswiped by stock market volatility, and reports that chances of a U.S. economic recession will put the brakes on the Canadian economy. With slower job growth, a low unemployment rate and the absence of widespread layoffs, consumer confidence will bounce back. The domestic economy and the housing market will weather the sub-prime fallout with the help of lower interest rates”.

City property taxes up 3.75%

2008-01-29T01:56:00.000-08:00

2008-01-26 00:00:00.0

By Paul Moloney
city hall bureau

Toronto homeowners will be facing a 3.75 per cent property tax hike this year.

City officials will roll out an $8 billion spending budget for 2008 on Monday that sources say calls for a 3.75 per cent increase – almost identical to last year's 3.8 per cent. On the average home, that translates to about $80 extra.

The perennially cash-strapped city is presenting a balanced budget this year, thanks to a land-transfer tax on home purchases that goes into effect next Friday.

"Unlike in previous years, we want to present a balanced budget on Monday," said Councillor Joe Mihevc.

"It will be the entire budget, not one with a gaping hole."

But the city must pay for many social services, and an economic downturn could quickly derail any budget if welfare rolls rise and the city finds itself paying out more.

Savings that were used to cover social services costs have nearly run out and need to be built back up, said Shelley Carroll, chair of the budget committee. A reserve fund used for that purpose was tapped for $31 million last year and is down to $2.7 million.

"No one wants to end up in a recession, but what we've seen in the last while is a wake-up call that one of those can happen, and that's why you have to have reserves," she said.

Still, this year's budget process is a big change from past years, when the city opened its budget review period not knowing where it would find $300 million or so needed to cover increases in staff wages and materials, debt repayment costs and service enhancements. Last year's budget was $7.8 billion.

The city ended up pleading each year for a financial bailout from the provincial government. The bailouts have averaged $150 million a year over the past five years.

Together with raiding reserves, hiking property taxes and trimming costs, the 11th-hour assistance has allowed the city to scrape by each year.

The proposed solution includes the province taking back social service costs that had been downloaded on the city.

A report on that is expected in April or May.

Municipal politicians have argued the city needed new revenues to take pressure off the property tax, a wish the province granted through changes to the City of Toronto Act. That allowed the city to bring in the land transfer tax, as well as a vehicle registration fee.

The new revenue streams – $175 million this year in total – aren't enough to balance the budget. However, in December the province announced transit funding that will yield $160 million to $200 million for the city.

While the new provincial money was for infrastructure, Toronto has won the right to transfer a chunk of it to the operating budget.

Torstar Syndication Services
Reprinted from Toronto Star, in the "GTA" section.

Be Mortgage Savvy in 2008

2008-01-22T17:10:00.000-08:00

TORONTO, Jan. 22 /CNW/ - The Bank of Canada's decision today to cut its key interest rate by a quarter point comes at a time when a lot of Canadians are wondering how current trends in the overall economy will impact their bottom line. For most of us, our home is our biggest investment and many are reading the headlines wondering what, if anything, they should do with their mortgage.
Gary Siegle, regional manager with Invis suggests some helpful approaches for those who are thinking of buying real estate soon.
For homebuyers looking at getting a variable-rate mortgage, Siegle asserts that this is a good approach in the current interest rate environment. Variable rate mortgages have historically offered greater interest savings over the long term but require homeowners to keep an eye on interest rate trends.
Not sure if you should "lock in" your monthly payment? A variable-rate mortgage will allow you to monitor rates while having the option to convert to a fixed-rate mortgage at a later date.
For homebuyers wanting to go with a fixed rate, this is the mortgage strategy preferred by most borrowers (72 per cent according to a 2007 study by the Canadian Association of Accredited Mortgage Professionals), as it offers stability in a shifting interest rate environment.
Siegle notes that rates on fixed mortgages have been fairly steady in recent weeks, although he adds that mortgage shoppers can't go wrong with a mortgage pre-approval with a rate hold. "If rates drop, you'll benefit from the new, lower rate. If rates on fixed mortgages rise during the rate hold, you still have your original lower rate." A mortgage broker will often be able to obtain a rate hold for a 120 day period.

Unseasonably High Price Appreciation and Record-Breaking Activity Cap Canada’s Real Estate Market in 2007

2008-01-17T11:17:00.000-08:00

TORONTO, January 8, 2008 – Canada’s real estate market posted significant gains in the fourth quarter of 2007 and showed little sign of the traditional seasonal slowdown. Average house prices continued to increase in the fourth quarter with many markets experiencing double-digit gains, according to a House Price Survey report released today by Royal LePage Real Estate Services.

Of the housing types surveyed, detached bungalows increased to $337,555 (+11.6 %), followed by standard two-storey properties, which rose to $399,738 (+11.3%), and standard condominiums, which increased in price to $240,395 (+11.7 %), year-over-year.

“The fourth quarter 2007 was surprisingly strong, with unseasonably high price increases and unwavering demand,” said Phil Soper, president and chief executive, Royal LePage Real Estate Services. “The strength of the market was apparent throughout the country, largely due to positive economic fundamentals. The value and export-demand for our natural resources has underpinned high employment rates, providing Canadians with confidence in the future stability of their jobs and their local residential real estate markets.”

The impact of the rise of Canada’s dollar to parity with the US dollar was mitigated by the end of the fourth quarter, as the manufacturing sectors in Ontario and Quebec continued to adjust to the dollar’s appreciation. Buyer activity levels in Central Ontario and Quebec remained strong and steady through the fourth quarter. In fact, Toronto displayed high levels of home buying activity in the fourth quarter, despite the city’s rising house prices, partly related to the introduction of a new land transfer tax that will be implemented on January 1, 2008.

Toronto’s real estate market shattered all previously held records for unit sales in 2007. The momentum from the year’s first three quarters carried over to the end of the year, as robust buyer activity pressured average house prices upwards.

The Royal LePage Survey of Canadian House Prices is the largest, most comprehensive study of its kind in Canada, with information on seven types of housing in over 250 neighbourhoods from coast to coast. This release references an abbreviated version of the survey, which highlights house price trends for the three most common types of housing in Canada in 80 communities across the country. A complete database of past and present surveys is available on the Royal LePage Web site at www.royallepage.ca, and current figures will be updated following the end of the fourth quarter. A printable version of the fourth quarter 2007 survey will be available online on February 15, 2008.

Housing values in the Royal LePage Survey are Royal LePage opinions of fair market value in each location, based on local data and market knowledge provided by Royal LePage residential real estate experts. Historical data is available for some areas back to the early 1970s.

Condo Sales Bring 2007 to a Strong Finish!

2008-01-08T06:53:00.000-08:00

Source: Toronto Real Estate Board

TORONTO, January 7, 2008 -- Brisk condo sales in December brought the 2007 Greater Toronto Area resale housing market to a strong finish, Toronto Real Estate Board President Maureen O'Neill announced today.
“Typically condominium apartment transactions comprise just over 20 per cent of total sales but in December they accounted for more than a quarter of resale activity,” said Ms. O’Neill. “Condos are often more affordable than other housing options and they show particularly well in winter.”

Increasing by 12 per cent over the previous year to a total of 93,193 sales, 2007 was the best year ever for GTA resale housing activity and December’s 4,646 sales came within two per cent of the best performance for the month, set in 2001.
The average price in December was $394,931, which resulted in an annual increase of seven per cent from the previous year.
The most active areas in December were in the City of Toronto.
Riverdale (E01) saw a 75 per cent increase in transactions compared to December 2006, primarily based on semi-detached home sales.
In the Mimico area of Etobicoke (W06) transactions were up 57 per cent, driven by a significant increase in the sale of condo apartments.
In North York, (C14) sales increased by 44 per cent compared to last December, as a result of strong detached home transactions.
Toronto's Downtown East (C08) experienced a 59 per cent increase compared to the same timeframe a year ago due to strong condominium and semi-detached home sales.
“We saw strong, stable monthly performances throughout 2007, which illustrates that consumers now recognize it’s always a great time to buy or sell their next home,” said Ms. O’Neill.
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service. Serving more than 26,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are available on www.TorontoRealEstateBoard.com.

2008 Market Survey Forecast

2008-01-01T15:15:00.000-08:00

TORONTO, December 17, 2007 – After experiencing an exceptional year characterized by strong average house price appreciation and record breaking unit sales, the momentum from 2007 is anticipated to carry over and position Canada’s real estate market for steady, yet moderate growth in 2008, according to the Royal LePage 2008 Market Survey Forecast released today.

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

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

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

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

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

Source: Royal LePage

Happy New Year Toronto West! Donate Before the Clock Strikes Midnight!

2007-12-27T05:38:00.000-08:00

I wish you all a Happy and Prosperous New Year!
Before the clock "strikes midnight", please consider a donation for your favourite organisation. Most donations to various charities are tax deductible, and your generosity could truly make a difference. Through the years my husband and I were lucky enough to be able to contribute financially or as volunteers to the work of the following organisations or charities that I would like you to keep in mind when making a donation.
Do not forget about your local schools either. Many educational institutions are looking for ways to enhance the educational programs they provide to their students. Get in contact with your local schools in order to find out how can you help.
Most Sincerely,
Eva Ballentine

The Redwood Shelter in Toronto provides the emotional, practical and social support that families need to get their lives back on track – they offer free and confidential services in 20 different languages, including assistance to women and children trapped in an abusive home through outreach visits and educational workshops at local schools, libraries, housing co-ops, churches, mosques, and other community gathering places. Over 80% of the women leaving The Redwood do not return to their abusive partners. At The Redwood, thousands of women and children found the way out.

The AIDS Committee of Toronto (ACT) delivers responsive, effective, and valued community-based HIV support services and education, prevention, outreach and fundraising programs that promote the health, well-being, worth and rights of individuals and communities living with, affected by and at risk for HIV/AIDS, and increase awareness of HIV/AIDS.

The Canadian Centre for Victims of Torture aids survivors, including children, women and erderly, to overcome the lasting effects of torture and war.

The Perinatal Bereavement Services of Ontario PBSO is a self-help organization committed to supporting parents and their families who have experienced the death of a baby through miscarriage, ectopic pregnancy, medical termination, stillbirth or neonatal death.

The Canadian Cancer Society is a national community-based organization of volunteers whose mission is the eradication of cancer and the enhancement of the quality of life of people living with cancer.

World Wildlife Fund Canada (WWF-Canada) Conservation Program is tackling some of the most daunting conservation challenges facing the country, as well as the broader international community.

The Heart and Stroke Foundation, a volunteer-based health charity, leads in eliminating heart disease and stroke and reducing their impact through the advancement of research and its application, the promotion of healthy living and advocacy.

Oxfam Canada works with allies in Canada and around the world to change the policies and practices that perpetuate human suffering. They support organizations in poor communities overseas in their struggle to secure basic rights. Oxfam's advocacy and campaigns for just policies are rooted in the knowledge and experience gained in that struggle.

The Canadian Red Cross mission is to improve the lives of vulnerable people by mobilizing the power of humanity in Canada and around the world.

The Stephen Lewis Foundation (SLF) helps to ease the pain of HIV/AIDS in Africa at the grassroots level. It provides care to women who are ill and struggling to survive; assists orphans and other AIDS affected children; supports heroic grandmothers who almost single-handedly care for their orphan grandchildren; and supports associations of people living with HIV/AIDS

The Nunavut Literacy Council promotes literacy and supports literacy initiatives in the four official languages of Nunavut - Inuktitut, Inuinnaqtun, English, and French. Unfortunately there is no online donation but you can contact them directly.

Canada’s House Prices Forecast To Rise By 3.5 Per Cent In 2008; Activity To Moderate

2007-12-22T14:37:00.000-08:00

TORONTO, December 17, 2007 – After experiencing an exceptional year characterized by strong average house price appreciation and record breaking unit sales, the momentum from 2007 is anticipated to carry over and position Canada’s real estate market for steady, yet moderate growth in 2008, according to the Royal LePage 2008 Market Survey Forecast released today.

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

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

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

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

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

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

Highlight of 2008 Trends
Strength of the Canadian Dollar
The position of the Canadian dollar hovering at parity will continue to bolster the country’s high consumer confidence, and is anticipated to translate into continued growth in consumer spending. The negative impact of the high dollar on the country’s manufacturing sector for export trade will be mostly felt in Southern Ontario and Quebec; however, both regions are demonstrating considerable resiliency, with a concerted effort by both governments and industry underway to improve productivity and improve international competitiveness.

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

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

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

Resales through the roof

2007-12-21T11:23:00.000-08:00

TORONTO STAR
2007-11-20 00:00:00.0

By Tony Wong
Business Reporter
If your realtor is driving a fancier car lately, she's got a reason: This is the best year ever for existing home sales in the Toronto area on record.

With six weeks remaining in 2007, resale home sales have already hit an all-time high of 84,994, beating the 84,145 sales set in 2005.

The number represents an unprecedented 10 years of appreciation in the up cycle of the housing market, and the fourth consecutive year where sales breached the 80,000 mark. This is all the more remarkable considering housing sales did not top 50,000 until 1996. In the 1970s and a good part of the '80s, 20,000 to 30,000 sales in the Toronto area was the norm.

The strength of the market, particularly in contrast to the implosion of housing prices in the United States, has befuddled many economists, who had forecast for the second time in at least two years that this year would once again be slower than the one before.

"Generally speaking, it's odd to see a real estate cycle last this long," says Ted Tsiakopoulos, Ontario regional economist for the Canada Mortgage and Housing Corp. "It seems we've reached a new paradigm where low interest rates, low inflation and a steady job market have kept this going a while longer than most people thought."

Other factors at play in 2007 include the introduction of longer-term amortizations in the market, which has allowed new buyers to get a foot in the door, and higher new-home prices that have pushed people back into the resale market, says Tsiakopoulos.

The year-to-date average price of a home is now $374,678, up 6 per cent from $352,807 recorded in the first 11 1/2 months of 2006. Consensus forecasts had been lower, anticipating a 3.5 per cent rise.

Analysts are already saying next year will be slower than 2007, with average price appreciation under 5 per cent.

One concern is that the high loonie is causing a massive loss of manufacturing jobs in Ontario, which may eventually impact the housing market. A new land transfer tax to be implemented by the city of Toronto next year is also expected to have an effect.

However, concern over the high dollar may also cause the Bank of Canada to reduce interest rates, which would boost the market.

"There is a mix of strongly positive economic drivers such as wealth effects from housing and the stock market and still-low interest rates, versus the strongly negative effect of the Canadian dollar," says housing analyst Will Dunning.

Another issue is high debt loads being taken on by families trying to get into the housing market. One of the big reasons for the failure in the U.S. housing market was lax regulation that gave consumers loans they couldn't support. Guidelines are tougher in Canada, but there's no question consumers are taking on greater mortgage debt, leaving them vulnerable to a downturn.

Growth of residential mortgage credit continues to accelerate, according to a study this month by the Canadian Association of Accredited Mortgage Professionals. During the past two years, it expanded by an average of $77 billion, or 11.4 per cent, per year. Residential mortgage credit outstanding is forecast to grow by 11.7 per cent in 2007, 9.3 per cent in 2008 and 8.4 per cent in 2009. Total mortgage credit is expected to surpass $1 trillion in 2010.

Torstar Syndication Services
Reprinted from Toronto Star, in the "Business" section.

Copyright © 2007 Torstar Syndication Services. Displayed by permission. All rights reserved. Toronto Star logo is a registered trademark of Torstar Syndication Services. The iCopyright logo is a registered trademark of iCopyright, Inc.

ONTARIO EXPANDS LAND TRANSFER TAX REFUND PROGRAM

2007-12-18T09:37:00.000-08:00

First-time buyers of resale homes to benefit from new tax measure

TORONTO – The McGuinty government is giving all first-time homebuyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes, Finance Minister Dwight Duncan announced today.

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

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

The expanded Land Transfer Tax Refund Program for First-time Homebuyers is part of a package of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review that would provide $1.4 billion in provincial tax relief for business and people over three years. The government is making strategic investments in people, communities and infrastructure to strengthen Ontario’s economic advantage and help manufacturers and other sectors challenged by current economic conditions.

What Some Of The Most Common Acronyms Mean In Ontario Real Estate?

2007-12-17T19:10:00.000-08:00

AIC - Appraisal Institute of Canada

AMP - Accredited Mortgage Professional

BOMA - Building Owners and Managers Association

CAHPI - Canadian Association of Home & Property Inspectors

CCI - The Canadian Condominium Institute

CCIM - Certified Commercial / Investment Member

CIMBL - Canadian Institute of Mortgage Brokers & Lenders

CLO - Certified Leasing Officer

CMR - Certified in Marketing of Real Estate

CPM - Certified Property Manager

CRA - Certified Real Estate Appraisal

CRES - Certified Real Estate Specialist

CREA - The Canadian Real Estate Association

CRF - Certified In Real Estate License

E&O - Errors and Omissions (Professional liability insurance)

FSBO - For Sale By Owner

MAI - Member Appraisal Institute

MLS - Multiple Listing Service

MVA - Market Value Appraisal

OA-AIC - Ontario Association Appraisal Institute Canada

OREA - Ontario Real Estate Association

RECO - Real Estate Council of Ontario

SRA - Senior Residential Appraisal