An Upgraded Version Of Realtor.ca Is Now Available!

There are a number of websites available that allow the public to search for properties currently listed for sale.  Many of these websites belong to real estate agents (take my website, for example).  Some belong to real estate brokerages (check out my brokerage's site here).  And then there are sites like Zillow.com (in the states) and Zoocasa.com (here in Canada).

Probably the best known and most widely used of these public sites is Realtor.ca (formerly mls.ca).  If you've used the site before, you know that it does have some limitations... Having said that, a handful of useful upgrades to the site were released on November 29th.

This upgraded version has new features and tools that allow users to customize their searches and find what they want faster.

The new interface’s features include:

1. Collapsible panels on the map search. The previous map search was divided into three parts: search criteria on the left, the map in the centre, and property thumbnails on the right. In the new interface, users are able to collapse either the left or right panels to allow for a larger map.
2. Drawing search areas on the map. In a manner similar to TorontoMLS, users are now able to draw shapes on the map to refine the geographic area that is of interest to them.
3. Auto-sizing for high definition monitors. The REALTOR.ca interface now changes its size based on the resolution of the user's monitor, eliminating white space that appears on the periphery of high definition screens.

What do you think of the new upgrades?  Are there other improvements that you'd still like to see?

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Condo Ownership: What To Expect

In the city of Toronto there are realtors who focus specifically on condos, and there are realtors who focus specifically on houses. There's a third group as well - the realtors who focus on both condos and houses.  I'm one of those guys.  Condos and houses each offer their own unique set of challenges, opportunities, and rewards.  I can't imagine giving up one for the other.

When it comes to buying/selling a condo versus buying/selling a house, there are a number of key differences to keep in mind.  Part of my job is to educate my clients as to what these differences are and to make sure they understand how condo living differs from freehold ownership.

I've written articles in the past focusing on condo-specific ownership issues (for example, take a look at my article on status certificates here, or my article on condo townhouses here).  The Toronto Real Estate Board has posted a few of their own articles on condo ownership as well.  I've re-printed one of those articles in full, below.  Take a look...

Following is the article, "Condo Ownership - What To Expect", as it appears on the Toronto Real Estate Board's website:

If you are considering the purchase of a condominium in the Greater Toronto Area you are one of many residents who recognize the numerous benefits of this type of property ownership. Offering affordability, proximity to desirable areas and limited maintenance, it’s no wonder that condominiums now represent one in every three resale home transactions in the GTA.

Before proceeding with your purchase though, it’s wise to gain an understanding of how condominium living differs from freehold ownership. As with any type of purchase, the golden rule when buying a condo is to get everything in writing. If you’re buying a new unit you can expect to receive a disclosure statement. It includes a description of the project’s most important features, bylaws that govern the corporation, rules that regulate owners’ living environment and the condominium corporation’s budget for the first year after registration. Incidentally, during the first year after registration, the condo corporations must undertake reserve fund studies, performance and turnover audits, and if the cost for such common expenses is underestimated, your developer must pay the difference.

If you are planning to buy a resale condominium, you should request a status certificate, which offers similar information and confirms that the owner is current with common expenses. It costs $100 and must be delivered within 10 days of request.

While the purchase of a resale condominium includes a firm closing date, the move-in date for a new condominium can be years in the future. In this case, the developer can extend closing dates but if your unit isn’t ready by their outside closing date, you can terminate the purchase agreement. Your developer will have the option of terminating the agreement as well, if they can’t meet certain conditions including sales of units, planning approval, and financing by specific dates. In this case your deposit is refunded with interest.

It’s more likely though, that you will be able to move in, beginning with an occupancy closing, which takes place until the condominium corporation is registered. In this case, until you take ownership you’re responsible for paying common expenses, realty taxes and interest on the purchase price’s unpaid balance, which is due on closing.

Once the developer loses majority control of the project, within 42 days all new owners may elect a Board of Directors, consisting of at least three Directors. Their responsibilities are significant. The Board must ensure monies are held in trust, funds are properly invested and records are kept. They can hire personnel to maintain common elements, enter into legal contracts with a percentage of owner consent, and buy and sell property for the use and benefit of owners. The Board also enforces the condominium’s documents (bylaw, and rules and declaration) which specify the units and common elements, each unit’s share of ownership, and the types of costs included in monthly expenses.

As an owner, you have many responsibilities as well. You are responsible for your mortgage, property taxes, common expenses, and fees to cover special expenses. Like the Board of Directors, you are bound by the condominium corporation’s declaration, bylaws and rules. The rules for example, will likely prohibit you from making structural changes without prior consent. You can’t damage or neglect your unit as doing so affects all property values. Similarly, you can’t do anything that may jeopardize the project’s insurance coverage. Common area changes are also off limits without prior consent.

Whether you are buying new or resale, it’s wise to enlist the services of a REALTOR® to ensure that you’re clear on all of your responsibilities with respect to condominium ownership. For more information visit www.TorontoRealEstateBoard.com

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Say No To Status Quo And Repeal The Toronto Land Transfer Tax

A few months ago I wrote a BLOG post titled, "How Much Can You Expect To Pay In Land Transfer Taxes?" (read it here).  I provided a breakdown of how the various provinces calculate these taxes.  I even linked to a handy little calculator that shows just how much a resident of Toronto has to pay.  Let's just say... it's not chump change.

Today, the Toronto Real Estate Board posted the above video on their YouTube channel. The message is simple: "Mayor Rob Ford made a promise to repeal the Toronto Land Transfer Tax.  Let's help him keep it."

From the Toronto Real Estate Board's website:

Say No To Status Quo!

Mayor Ford and City Council were elected with a clear mandate to change the way City Hall operates, including repealing the Toronto Land Transfer Tax. Unfortunately, some City Councillors are getting cold feet and would prefer to maintain the status quo. You can help make sure that City Council moves forward with changing City Hall.  Use the links below to:

• Send an email to the Mayor and City Council (click here)
• Email your contacts to take action as well (click here)
• Send a letter to the editor of selected media (click here)

For access to a Land Transfer Tax Calculator and other financial tools, visit my website here.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

My Blog Is Two Years Old This Month. Happy 2nd Birthday!

That's right, my real estate blog has been active for TWO YEARS now!  I submitted my very first post in August of 2009 and haven't looked back since.  I wrote a similar "Happy Birthday" post last August, celebrating my blog's first year of existence (you can read it here).  That post answered the question, "What does one get a blog for its birthday?"  In case you missed it, here's a re-print of my answer:

• You could like my Real Estate Facebook Page.  All of my Blog posts appear there, along with links to market stats, articles of interest, and plenty of other real estate goodies.  Liking my Facebook Page is a great way to stay on top of the market and make sure you don't miss a thing.
• Follow me on Twitter.  Among other things, I post links to all my Blog updates there.  Following me is another great way to stay connected.
• Subscribe to my Blog's RRS Feed.  If you're unfamiliar with RRS Feeds, take a look at this article here.
• Subscribe to my Blog by Email (you'll find the subscription box in the column to the right of this post).

Once again, I'd like to end this post by saying THANK YOU to everyone who's taken the time to read and support this Blog over the past two years.  Looking forward to birthday #3!

Cheers!

Toronto Is About To Get Re-Districted!

     Take a look at the above photo.  This is how the Toronto Real Estate Board divides up the city.  Furthermore, each of these four areas (Central, North, East, and West) are divided up into districts.  For example, the Central area is divided up in Disticts C01, C02, C03... C15 (check out the photo below). 

As it is now, if I have a client looking for a condo in the St Lawrence Market area, the narrowest geographical search that I can provide them with is for District C08.  This means that they'll be sent listings for properties that are located as far north as Bloor St!  Not good.  And what if I have a client looking to purchase a home in Little Italy?  Little Italy sits in Disctrict C01, but so do properties that are located as far east as Yonge St and as far south as the Waterfront!

There has to be a better way!  Finally, after years of waiting, there is...

Following is an excerpt from a release that realtors were given a few weeks ago, describing the coming changes to the current system:  "On July 5, we'll see the fulfillment of a major objective: the replacement of our old MLS® districts with easier to understand community names.

Not only do the current district names not make sense to your clients, you can’t use them to accurately target what your clients want. It is almost impossible to target a search in our MLS® system to a specific neighbourhood...

Re-Districting will solve these problems, replacing the code numbers with true geographic areas, giving your searches greater clarity and a tighter focus.

On July 5, community, or neighbourhood names, are replacing the districts. Their names and their boundaries were provided by government bodies with REALTOR® input. In this way, the names will make sense to the people who live in the area and REALTORS® who work in the field."

Here's TREB's current map for the Central Disticts:

And here's a snapshot of what the new and improved map will look like (Districts C01 & C08):

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Five For Friday

     It's roundup time!  Let's take a look back at some of the more interesting articles, videos, and photos that popped up over the past two weeks... 

#5.  Photos Of The Supermoon Above Toronto

     On the 20th, Derek Flack of blogTO posted a choice selection of photos of Saturday's supermoon.  Stunning photos aside, I think David did a good job of summing up this rare natural wonder when he wrote, "Impressive, yes. Jaw-droppingly amazing, not so much."  Read the full article here.

#4.  Green Roofs Toronto

     On the 15th, Jessica Lemieux of Spacing Toronto took a look at some of the city's best know green roofs.  The ESRI building, Mountain Equipment Co-op, the Hugh Garner Co-op, and our very own City Hall were featured.  Read the full article here.

#3.  Despite Stress, No Crash Seen In Housing

     On the 14th, Steve Ladurantaye of the Globe and Mail outlined a number of reasons why, despite signs of stress, the Canadian real estate market won't crash.  Read the full article here.

#2.  World's Richest Man Buys Manhattan's Most Expensive Townhouse

     On The 17th, Cliff Peskin of BuzzBuzzHome wrote about the recent $44 million sale of a 20,000 square foot Manhattan townhouse.  Listed in the spring of 2010 for $50 million, the property was finally purchased by a man named Carlos Slim Helu (he holds the #1 seat on Forbes' "Richest People" list).  Read the full article here.

#1.  Nostalgia Tripping: Canada's First Subway System

     On the 19th, Agatha Barc of blogTO looked back to the March 30th, 1954 opening of the country's first subway line.  It stetched between Eglinton and Union stations and a single fare was $0.10 (tokens were 3 for $0.25)!  The article paints a good picture of the events leading up to that historic day (and there are a handful of great photos to boot).  Read the full article here.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Five For Friday

     It's weekly roundup time!  Let's take a look back at some of the more interesting articles, videos, and photos that popped up over the past seven days... 

#5.  The 10 Ugliest Streets In Toronto

     On Wednesday, Derek Flack of blogTO compiled a list of the ten most unattractive streets in T-Dot.  Here's hoping yours didn't make the list!  Read the full article here.

#4.  Real Estate: 10 Things You Need To Know

     On Wednesday, business reporter Tony Wong of the Toronto Star listed ten things to consider when buying a home.  Read the full article here.

#3.  Nostalgia Tripping: Toronto's Eminent Women

     On Saturday, Agatha Barc of blogTO added another installment to her weekly "Nostalgia Tripping" series.  This one focused on Agnes Macphail (our first female Member of Parliament) and a handful of other Toronto women of distinction.  Read the full article here.

#2.  Vintage Toronto Ads: Ammoniate Your Smile!

     On Tuesday, Jamie Bradburn of torontoist cracked open an April 1949 issue of Reader's Digest and found an ad for ammonium-based teeth whitening powder.  Thanks, but we have lasers for this sort of thing now...  Read the full article here.

#1.  Canada Is The Third Most Popular Country In The World!

     On Tuesday, Matthew Slutsky of BuzzBuzzHome took a look at BBC's "World Service Country Rating Poll" where Canada placed 3rd (behind #2 Britain and #1 Germany).  Go Canada! Read the full article here.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Federal Government Changes Mortgage Rules, Again

       It's been almost a year since the Feds last tightened lending rules (you can read my BLOG post from last February here).  Last week, Jim Flaherty and the Government of Canada announced three further changes to the standards involved in Government backed mortgages:

• The maximum amortization period will be reduced from 35 years down to 30 years.
• The maximum amount Canadians can borrow in refinancing their mortgages will be reduced from 90% of the value of their home down to 85% of the value of their home.
• Government insurance backing on lines of credit that are secured by homes (eg. a home equity line of credit) will be withdrawn.

Realistically, it's the first one on the list that'll have the most significant effect (at least from my perspective as a Realtor working in downtown Toronto).  I'm sure there'll be a push in the coming weeks as buyers are motivated to secure a property before the mortgage changes take effect (March 18th).  The line of credit changes come into effect a month later (April 18th).

Following is last week’s release from the Department Of Finance Canada:

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:

• Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
• Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

For access to a Mortgage Calculator and other financial tools, visit my website here. 

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Looking Forward: What's In Store For The 2011 Real Estate Market?

     The Toronto Real Estate Board recently weighed in with their outlook for 2011/2012 by posting the above video to their YouTube channel.  This video is the latest from TREB in a series featuring their Senior Manager of Market Analysis, Jason Mercer.

In his presentation, Mr. Mercer focuses on 3 key factors in his analysis of where we've been and where we're going:

• Average home price
• Average household income
• Average 5 year fixed mortgage rate

For those of you unwilling to sit through the 20 min video (I don't blame you - 20 min is long...), here's a quick summary of his outlook:

• The pace of economic recovery has slowed NOT STALLED in Canada. 
• The market consensus is for fewer rates hikes than originally expected through the end of 2012.
• Wages and salaries will reach an inflation-level of growth.
• There'll be an inflationary increase in utilities costs and taxes.
• Right now affordability remains in check, thus the current average selling price is justified.
• Price growth will be slower in 2011/2012 (3% growth).

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Looking Back: The 2010 Real Estate Market In Review

           One of my favourite Real Estate blogs, BuzzBuzzHome, posted a great recap a few days ago of all the craziness that the Canadian real estate market experienced this past year (read it here).  Looking back, there’s no doubt 2010 was a remarkably eventful year.  Here’s my own breakdown of some of the highlights:

• The first half of the year was characterised by multiple-offers and steadily increasing prices (a continuation of what began in earnest in the fall of '09).  The flourishing of this seller's market was due in part to low inventory, high demand, and historically low interest rates.
• New mortgage rules were implemented by the federal government in April.  These changes effectively made it more difficult for some buyers to obtain financing. 
• Easter weekend ushered in the Spring market, along with a noticeable increase in listing inventory.
• July saw the arrival of the Harmonized Sales Tax (HST).  Purchasers of new homes would feel the sting more than others.
• The Summer market was slower than that of years past.  Fears of a bubble and uncertainty were in the air.  A number of buyers chose to sit on the sidelines.
• The Fall market saw an increase in activity following the slower summer.  No bubble?  Multiple offers seemed to be making a comeback...
• The Competition Bureaus vs CREA.  A settlement was finally reached - one that ultimately provides consumers with more choice.  How will the new rules affect the industry?  Only time will tell.

So, what can we expect in 2011?  A number of industry leaders are predicting more stability for the real estate market over the next few years.  I don't know about you, but more stability sounds just fine to me...

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Don't Be Mistaken When It Comes To HST

     As noted in the above YouTube video, a recent Ipsos Reid survey revealed that 56% of Ontarians mistakenly believe HST applies to the full purchase price of resale homes.  The survey was commissioned by the Ontario Real Estate Association in an effort to convince the Ontario government to launch a public awareness campaign to educate taxpayers and put an end to the confusion.

The video interview goes on to say, "Based on this research families are putting off the decision to move.  They actually think that they just can't afford it.  Everyone has a dream of home ownership and if they're putting it off because they think they can't afford it based on a misconception about HST that's a real shame."

I personally haven't noticed a downturn in my own business or a reluctance by my clients to make a move because of the HST.  That doesn't mean it isn't happening though... Many realtors are saying that they're feeling a negative impact.

So, how do we combat the confusion?  By educating our clients as to when the HST actually applies!  Here's a quick breakdown:

• HST does NOT apply on the purchase price of re-sale homes.
• HST DOES apply to services such as legal fees, home inspection fees, appraisal fees, labour for renovations, landscaping and real estate commissions, if applicable. 
• It is estimated the average home buyer will likely pay $1200 - $1500 additional cost in HST fees when moving.
• HST applies to the purchase price of newly constructed homes.   However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 % rebate of the provincial portion of the single sales tax on the first $400,000. (so that's basically a savings up to the first $24,000 hst)
• For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Real Estate Lingo 101

     What's the difference between a real estate Sales Representative and a Broker?  What does it mean to be represented as a Client versus a Customer?  What's an "ELF"?  What's "CAC"?  Every industry has its own set of terms and lingo, and Real Estate is certainly no different.

Anyone who's ever bought or sold a home is probably familiar with the vernacular.  And no doubt anyone actively in the market right now is using the jargon on a regular basis.  For anyone unfamiliar with the terminology and a bit curious, the Toronto Real Estate Board released an article last week detailing some of those more commonly used.  Check it out...

Following is Bob Johnston's (TREB President) Column as it appears every Friday in the Toronto Sun’s Resale Homes and Condos section:

Coming To "Terms" With Real Estate

September 17th, 2010 --- From major league sports to the medical field, every profession has its own unique lingo and real estate is no exception. Since a home is likely to be the single largest purchase you will ever make, it’s worthwhile to have an understanding of some of the terms most commonly used in the real estate world.

There is a distinction between real estate practitioners and those who can use the certified “REALTOR®” trademark.  While all real estate professionals are required to achieve registration with the provincial regulator, the Real Estate Council of Ontario (RECO), REALTORS® are those who also choose to belong to the Canadian Real Estate Association by joining a local board like the Toronto Real Estate Board. Boards operate MLS® under license from the Canadian Real Estate Association, and Members abide by the professional standards of business practice.

Using the MLS®, a REALTOR® can contrast your existing or prospective home with those recently sold in the area, developing a CMA or Comparative Market Analysis, to help you determine a suitable offer or listing price.

You may have noticed that some REALTORS® are Salespersons and others are Brokers. While all real estate professionals begin their careers as Salespersons, many choose to pursue RECO’s more advanced Broker designation after two years in practice. 

A Broker of Record meanwhile, is an individual who is responsible for the operation of a real estate company, or brokerage. Salespersons and Brokers act on behalf of the brokerage and the Broker of Record is responsible for ensuring supervision of their activity.

When you work with a salesperson or broker, you will have the opportunity to determine whether you want to be represented as a Client or as a Customer.

By opting for Client status, you are choosing to contract with a real estate professional and the brokerage they represent, so that they will act in your best interest throughout the duration of your transaction.

By choosing Customer status, you have agreed that the real estate professional and their brokerage are not required to represent your interests and you are not obligated to work exclusively with them.

Once you have chosen to work with a REALTOR® you may choose to list your home on MLS® and may be presented with an array of marketing options, one of which can afford your listing heightened exposure by displaying it on the websites of other brokerages. This is referred to as IDX, or Internet Data Exchange. 

When you peruse listings on REALTORS’® websites you will notice a number of abbreviations to describe a home’s features like elf – electrical light fixture, fp – fireplaces, and cac – central air conditioning.

These are just a handful of commonly used terms in the world of real estate. To learn more about the process of buying and selling a home talk to a REALTOR® and visit www.TorontoRealEstateBoard.com where you’ll find Greater Toronto Area listings, a schedule of upcoming open houses, plain language explanations of real estate forms and more.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

CREA Economist Explains July's National Home Sales Activity

     Are you a fan of line graphs, bar charts, and market stats analysis?  If so you'll love the above YouTube video posted today by the Canadian Real Estate Association (CREA).  For the rest of you, Mr. Cathcart's breakdown of what's happening in the Canadian real estate market at the moment is still very much worth a look.  I've also listed some of the video's key points below.

• The soft sales figures we're seeing right now can be attributed in part to accelerated home purchases earlier in the year.
• Buyers rushed into the housing market before announced changes to mortgage regulations took effect, interest rates moved up, and the HST came into effect in British Columbia and Ontario.
• In other words, the real estate market was "borrowing from the future" and much of the activity that normally would’ve happened late spring and through the summer actually took place in the first quarter of the year instead.
• It’s also important to keep in mind that actual (not seasonally adjusted) year-over-year comparisons are going to be amplified by the fact that July 2009 was an ALL TIME RECORD month.  The numbers from July 2010 can’t help but pale in comparison to what we saw a year ago.
• The good news is that new listings have been on a decline since they peaked in April.  This decline will help maintain the balance between supply and demand in the marketplace and temper home price volatility. 
• Activity may remain at lower levels for some time but with the factors responsible for recent volatility now largely in the rear view mirror we do expect a more stable market to emerge, characterised by a flattening out of prices and demand coming back into line with economic fundamentals.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

My Blog Is One Year Old This Week. Happy 1st Birthday!

     Like anyone else, I've celebrated my share of milestones over the years.  Kindergarten graduation, my first kiss, marriage, buying my first home...  This week I'm proud add one more thing to the list - my real estate Blog is now one year old!

What does one get a Blog for its birthday, you ask?  Well, I have a few ideas...

• You could become a Fan of my Real Estate Facebook Page.  All of my Blog posts appear there, along with links to market stats, articles of interest, and plenty of other real estate goodies.  Becoming a Fan or Liking my Facebook Page is a great way to stay on top of the market and make sure you don't miss a thing.
• Follow me on Twitter.  Among other things, I post links to all my Blog updates there.  Following me is another great way to stay connected.
• Subscribe to my Blog's RRS Feed.  If you're unfamiliar with RRS Feeds, take a look at this article here. 
• Subscribe to my Blog by Email (you'll find the subscription box in the column to the right of this post).

I'd like to end this post by saying THANK YOU to everyone who's taken the time to read and support this Blog over the past year.  I've had a blast writing it and I hope you've enjoyed reading it.  I look forward to another great year.

Cheers!

What's The Smallest Space You Could Live In?

      A few weeks ago I came across the above YouTube video of architect Gary Chang's incredible Hong Kong apartment.  Since then I've seen a few newspaper articles focusing on exceptionally small living spaces here in Toronto.  There were two in Saturday's Toronto Star alone (which you can read here and here).  All this talk of tiny homes has me asking the question, "What's the smallest space you could live in?"  500 square feet?  How about 400 square feet?  Could you live in 300 square foot apartment?  (Yes, they do make condos that small).

The smallest home I've sold was a 400 sq ft bachelor condo in the Pantages building on Victoria Street.  The buyer of this property put location at the top of her list.  Size was secondary.  As with any purchase, budget dictated the size of unit we could find within the specific location.  A bachelor unit was her only option.  Fast forward a few years - she's still there, she's happy with the space, and she has no plans of moving anytime soon. 

I'm no stranger to small spaces myself.  One of the first places my wife and I had together was a 400 sq ft bachelor apartment in the Annex.  We lived there for about a year, rearranging the layout 3 times until we found the perfect configuration to maximize the space.  With two people in such tight quarters we had to find the most economical placement and use of our furniture.  We'd try to multi-purpose anything we could ("This guitar amp could double as an end table..."). 

Could we live in such a small space now?  No.  But we did, happily, for almost a year.  And the clients that I've helped purchase smaller condos are very happy with their spaces.  The reality is, in a city like Toronto there will always be a market for small properties. 

There will always be renters who are looking to purchase their first home and the fact that these smaller properties exist allow them to do so.  There will always be someone looking to expand their real estate portfolio and a 400 sq ft condo offers them the opportunity to purchase their first investment property.

Of course, there will also always be those who balk at living in such small spaces.  They need to remember though, that in a city like Toronto real estate values are not the same as those in Windsor or London or Guelph...  Not everyone can afford an 1500 sq ft house here.  Without these smaller spaces a number of buyers simply wouldn't have an option. 

Just be happy that you're not in Vancouver where rental units as small as 270 sq ft are soon to hit the market.  Although I'm sure it's only a matter of time...

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Rise In Listings Means More Choice For Homebuyers

     Who likes a more balanced market?  I do!  I do!  So far, this year's spring market has seen the arrival of more listings than we've had in awhile.  Although we're still aways from being "balanced", Toronto's inventory shortage does seem to be easing up a bit.

Demand is certainly still very high.  Although mortgage rates have started to increase, there are a number of buyers locked into record low rates for a few more months and the push is on for them to take advantage.  The looming arrival of the HST is also motivating many to make a move by the end of June.

This rise in new listings and the resulting effect on the market is the subject of a press release today from the Canadian Real Estate Association (CREA).  Although the release focuses on the country as a whole, it does touch in significant ways on the Toronto real estate market. 

Following is today's press release from CREA in its entirety:

Homebuyers have more choice heading into the busy spring buying season, with new supply in Canada's resale housing market setting a record for the month of March. While resale housing demand remains strong, rising numbers of new listings are resulting in a more balanced national resale housing market.

According to statistics released by The Canadian Real Estate Association (CREA), some 97,663 residential properties were listed for sale on the Multiple Listing Service(R) (MLS(R)) Systems of Canadian real estate Boards in March 2010. This is an increase of 20 per cent from the previous March record set in 2008. A total of 233,402 new listings have come on stream since the beginning of the year, more than in any other first quarter period on record.

"Negotiations still favour sellers during the home buying process in a number of major Canadian housing markets," said CREA President Georges Pahud. "The rise in new listings means that buyers may shop around more before making an offer."

Demand remains very strong, but has edged lower compared to the record levels posted at the end of 2009. Seasonally adjusted national home sales totalled 130,072 units in the first three months of 2010. This represents the fourth highest quarterly level on record, down 3.4 per cent from the quarterly peak in the fourth quarter of last year. Sales activity in Ontario, Quebec, and Newfoundland & Labrador rose to new records in the first quarter. Higher activity in these provinces was offset by a decline in activity in British Columbia (-17.8 per cent) and Alberta (-9.7 per cent).

Actual (not seasonally adjusted) sales numbered 111,110 units in the first quarter of 2010. This is the third highest level ever for the first quarter period.

A total of 43,621 homes traded hands through Boards' MLS(R) Systems on a seasonally adjusted basis in March 2010. This is an increase of 1.4 per cent from February, as further gains in Toronto more than offset a decline in activity in Vancouver. Seasonally adjusted sales scaled new heights in Toronto and Ottawa in March.

Unadjusted national sales activity numbered 49,256 units in March. This marks the second highest level on record for the month of March. On a year-over-year basis, sales were up 40.8 per cent, smaller than those of the previous five months. Since a year will soon have elapsed following the recessionary decline and subsequent rebound for the Canadian resale market, year-over-year comparisons are expected to continue shrinking in the months ahead.

The national average price of homes sold via Canadian MLS(R) Systems in March was $340,920. This is the second highest national average price on record, just $300 below the peak reached last October. Compared to March 2009, the national average home price was up 17.6 per cent. As with sales activity, the increase was smaller than those recorded over the past five months, and year-over-year gains are expected to become further subdued as the year progresses.

The price trend is similar but less dramatic for the national weighted average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. It climbed 16 per cent on a year-over-year basis in March 2010.

The residential average price in Canada's major markets climbed 19 per cent year-over-year to $373,835 in March. As with the national counterpart, the price trend is similar but less dramatic for the major market weighted average price, which rose 17 per cent from levels reported in March 2009.

There were 214,312 homes listed for sale on Boards' MLS(R) Systems in Canada at the end of March 2010, a decline of nine per cent compared to the elevated levels of one year ago. This is the smallest year-over-year decline in active listings since June 2009.

The actual (not seasonally adjusted) number of months of inventory in March 2010 stood at 4.4 months. While well below where it stood one year ago (6.7 months), and down slightly from March 2008 (five months), months of inventory are higher compared to March from 2004 through 2007. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

On a seasonally adjusted basis, months of inventory stood at 4.6 months in March. This was little changed from February, but stands above levels reported in the previous four months.

"The erosion of housing affordability is crimping activity in some of Canada's priciest markets in the lower mainland of British Columbia," said CREA Chief Economist Gregory Klump. "Higher mortgage interest rates and the rise in new listings may also soon reduce some of the urgency to purchase in Toronto. Sales activity in British Columbia and Ontario is expected to ease over the second half of 2010 once the HST comes into effect, pulling national activity lower. Rising supply and lower activity will take the steam out of the pricing environment following upbeat home sales this spring."

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Ossington Art Hub Alive And Vibrant Despite Moratorium

     Anyone familiar with that strip of Ossington Ave running north from Queen Street up to Dundas knows there's been quite a bit of change there in the last few years.  The number of bars, restaurants, shops, and galleries that've sprung up is impressive.  I live in the surrounding area myself and can attest to the difference a few short years makes.  In terms of real estate values alone, the area has certainly experienced an increase.  I helped some clients purchase a townhouse on Halton St, just east of Ossington, and the prices there have certainly benefited from what's happening in the area.

So much change though, so quickly, isn't going to sit well with everyone.  A number of residents in the immediate area voiced their concern about the increased nightlife and the city responded by placing a moratorium on new bars.

Personally, I'm somewhat divided on the moratorium.  I'm happy for anything it's done to curb the over-saturation of clubs that some feel was on the horizon.  But I'm also disappointed that a less restrictive solution wasn't adopted - a solution that would've allowed for more bakeries, daytime restaurants, etc, to find their way onto the strip. 

This isn't to say that there hasn't been any growth along the strip since the moratorium went into effect last year.  In fact, galleries and art spaces have really flourished.  There was an article in yesterday's Toronto Star touching on this very subject.  Take a look:

Following is Sarah Barmak's article from the March 14th Toronto Star in full:

One year after a controversial moratorium on new bars on the street was passed, much on Ossington Ave. has seemed frozen in time, with no new eateries and few new shops.

Other than the growth in gallery space, that is. More than ever, the Ossington art hub is alive and vibrant.

Jamie Angell's Angell Gallery relocated to the foot of Ossington from 890 Queen St. W., moving from 700 square feet to a cavernous 4,000. With its grand central space and satellite wings, it isn't hard to imagine Angell as a bustling bistro. Instead, it's now one of the bright lights of a booming creative nexus.

Further north on the strip, Meta Gallery is busily renovating their new space – formerly the eclectic art, market, concert, and event venue Rolly's Garage – for their grand opening on April 2.

The most impressive newcomer to the neighbourhood, the Artscape Shaw Street Centre, will add a mind-blowing 75,000 square feet of dedicated gallery and working space for artists to the area when it opens in 2012. A repurposing of the beautiful century-old Shaw Street School, which had been shuttered for a decade before Artscape bought it in January, the centre will be the largest project to date for the not-for-profit urban development organization behind the Wychwood Barns art community in the St. Clair and Christie neighbourhood.

Artscape's request for expressions of interest from artists – due Thursday – is helping them envision how the space will be used. The prospect of all that room, however it's used, seems likely to lure more artists and arts businesses to the area.

"Galleries could be a part of it," says Liz Kohn, director of communications for Artscape. "Also, music or performance or theatre. The options are endless, really."

The bar moratorium, put in place by ward councillor and now mayoral candidate Joe Pantalone, had split residents – who complained about late-night noise – and business owners, who said the ban penalized people who wanted to open daytime restaurants and bakeries.

Council since replaced that ban with more permanent rules: new bars, cafes, restaurants, bakeries and takeout places are limited to the ground floor and 175 square metres (1,800 square feet). Fears voiced by locals that the strip would wither under the restrictions, however, don't seem to have materialized – for galleries, in any case.

"It's like a village between Dundas and Queen," says Angell, whose gallery has its official launch April 3. "I personally think it is easier for galleries to grow on Ossington."

Angell more than quadrupled his floor space by moving to Ossington while only doubling his rent. He also moved to the area himself, with an apartment above his gallery.

"Much more space enables me to have three distinct galleries," he says – a dramatic main wing for group shows and up-and-coming artists, an east wing, and a project space where visitors see more inventory. The high-ceilinged white rooms elegantly show off the work of talented locals such as Geoffrey Pugen and Alex McLeod.

It isn't just the space, however. One of the most distinctive additions to the new Angell Gallery is a permanent video room. The mini-theatre, with a flat-screen video monitor, speakers and space comfortable for about four to six people, is unique among smaller galleries, which usually install screens temporarily for specific exhibits.

"It's a serious medium," says Angell. "But how many galleries have the space to dedicate to it?"

Jody Polishchuk, owner of Meta Gallery, says he's happy Ossington didn't become a club district. "People were worried it was going to turn into a kind of Richmond Street," he says. "It's such a gem and it would be a shame for it to go that way."

He says he looked for spaces along Dundas West – theorized by many as the new, new art district – before settling on Rolly's. He's happier to think of Dundas West as part of a giant art nexus that includes Ossington and the Shaw complex, anyway.

The new Meta seems likely to become a strip destination: though it will be a gallery in the main, it plans to retain some of the events that made Rolly's Garage such a creative hotspot – such as its unique Night Market, where local vendors sold hand-made designer goods while shoppers drank and socialized.

It has even hired Phil Terry, the same contractor who has worked on the Drake Hotel, W Burger Bar and Mercatto restaurants. Not that it will get a permanent liquor licence. "As if Ossington really needed another bar," says Polishchuk.

Architect Breck McFarlane owns the building at 9 Ossington, which houses electronic media arts centre InterAccess and Imperial Tattoo. He agrees that galleries seem to have emerged from the moratorium unscathed. And he is happy to remind newcomers that the street is a long way from what it was when he bought the property in 2001.

"It was like a country road," he says. "I think there were tumbleweeds, honestly. It's got to be a 25-fold increase in foot traffic (since then)."

Many small business owners along the strip are far less sanguine about life since the ban, however. They say the moratorium didn't stop kids from drinking – and it hurt daytime retail.

"I'm the newest vintage store and I've been here for a year," says Lindsay Fernlund, who owns Silver Falls, across from Angell. She says without places to have lunch, shoppers simply don't linger on the street.

"Restaurants would get foot traffic going," says Tim Hanna, the owner of Ossington bookstore Frantic City. He says that when Pizzeria Libretto opened nearby, he stayed open late and benefited from more walk-ins.

Two daytime restaurants and a bakery have closed since Pantalone's moratorium was put in place – businesses that haven't been replaced. The councillor says eateries and bars are welcome if they comply with the new rules; what's wanted, is variety, not just a bar strip.

"Art galleries, clothing stores and food stores are particularly needed in this area to add to the diversity, and their absence was actually creating a problem to both the business people and the residents," he told the Star's Bruce DeMara last week.

There is also a danger that the new rules and the drop in daytime traffic will make the art community also sour on the street.

"There is not another strip in the city that has so many restrictions," says Gary Hall, executive director of Gallery TPW, which relocated to 56 Ossington in 2006 after 20 years at 80 Spadina Ave.

He says the gallery will "consider all its options" – including the idea of the Shaw Street Centre – when their lease expires in three years.

Others are already thinking about life after Ossington – west of it, that is. Next month will see the opening of Parts + Labour on Queen West near Sorauren Ave., masterminded by owners from The Social and Oddfellows, two hectic hipster hubs within blocks of the Queen/Ossington axis. The group gutted a huge old building that housed a hardware store for decades and spent months creating a slick restaurant and live music venue. What results is sure to transform a forlorn stretch of street – and finally, perhaps, Parkdale.

While Ossington galleries continue to thrive, only time – mainly the summer and its crowds – will tell what the future of the strip holds.

If you’re thinking of making a move to or from the Ossington Ave area, or downtown in general, feel free to contact me for more info.

Federal Government Changes Mortgage Rules

     Jim Flaherty and the Government of Canada announced yesterday three changes to the standards involved in Government backed mortgages:

• Buyers must now qualify at the 5-year rate
• Home owners can now refinance up to 90% of their home's value (down from 95%)
• Speculative buyers must now come up with at least 20% down (up from 5%)

It'll be interesting to see the effects these rule changes have.  Certainly the tightening will be felt by those looking to purchase and flip.  It's also possible that the changes (to be implemented April 19th) will add to the push already felt by some buyers/sellers to make a move before the HST comes into effect this summer. 

Following is yesterday's release from the Department Of Finance Canada:

The Honourable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians.

"Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."

The Government will therefore adjust the rules for government-backed insured mortgages as follows:

• Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
• Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
• Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.

"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.

For access to a Mortgage Calculator and other financial tools, visit my website here. 

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Haggling Over Your First Mortgage

     I work with a number of first-time buyers, so when I saw this article a few days ago I thought it would be a good idea to post it to my blog.  Following is the article by Paul Brent as it appeared in the Sept 30th edition of the Globe and Mail: You've been to the open houses, explored various neighbourhoods and perhaps even checked out local schools before settling on the home of your dreams. Now it's time to negotiate your first mortgage, a process which done right, could save you tens of thousands of dollars. 

Today's low interest rates have made buying that first home easier but it can also breed complacency. Rates will rise eventually so purchasers need to not only find a place they can afford, but ensure that they have negotiated the best mortgage terms possible and educated themselves on the document they are about to sign.

When it comes to mortgages, the first lesson is that not all mortgage lenders are created equal. That become quickly apparent to Naysan and Nahid Hariri, both 28, who are mortgage shopping for a $438,000 home now being built for them in Richmond Hill, Ont. “I found that a couple of institutions were a number of (interest) points higher than others,” he said.

The Hariris also found that the big banks, which tend to have higher posted rates than smaller financial institutions, were reluctant to lower their rates. “My understanding with banks is that if you have services with them, they tend to work out something better for you.” Because first-timers typically have less money parked with a particular institution, they tend not to have the leverage to demand lower rates.

The stakes and the learning curve are higher for first-timers. “Usually they are borrowing a lot more money and there is quite a lot to learn,” said Lois Volk, a 22-year mortgage broker with Invis in Toronto's trendy Beaches neighbourhood. “If they don't know, certainly we go through everything: make sure they are comfortable with the concept, what their payments are going to be, work through a budget if necessary and help them consolidate debt if necessary.”

But before couples even start house shopping, they should meet with their bank to obtain a pre-approval or, at the very least, a rate guarantee, said Martin Beaudry, head of lending underwriting at ING Direct.

Mr. Beaudry said that the difference between the big banks and independent firms is rate transparency. “The big banks start very high with their rates and you need to negotiate the rates down and sometimes they have as much as 1.5 per cent leeway on their posted rates while small institutions like ING Direct will post their lowest rate.”

ING Direct's most popular mortgage term among its customers is its 5-year fixed rate, currently sitting at 3.99 per cent. Five-year, fixed rate mortgages for the big banks range between 5.49 and 5.55 per cent, according to Globe and Mail data. The lowest rate found was 3.94 per cent offered by Meridian Credit Union.

Crunch The Numbers

Obtaining a pre-approved mortgage forces new buyers take a long, hard look at not just how much house their bank says they can afford, but how much debt they are willing to shoulder to get into home ownership, combined with whatever else they owe. Be aware that your comfort zone and the lending institution's are not necessarily the same. Banks are in the business of maximizing earnings which could translate into a mortgage which you can afford – on paper at least – but one that leaves little money left over for fun indulgences.

The Hariris, who both work for IBM Canada, decided to determine their debt threshold before sitting down with a financial institution. “The first thing you need to do is figure out your monthly budget,” said Mr. Hariri. “My wife and I sat down for months in advance to see exactly what we can afford, what is comfortable for our lifestyle.”

On their own, they also managed to say the 20 per cent of the purchase price for a down payment so that they don't have to carry the extra expense of mortgage insurance from Canada Mortgage and Housing Corporation (CMHC).

Financial institutions say that mortgage borrowers should devote no more than 30 to 32 per cent of their combined gross incomes to mortgage payments, property taxes and heat. “CMHC will also allow you to go up to 40 per cent or sometimes slightly higher if you have no other debt,” said Ms. Volk, the mortgage broker.

As ING Direct clients, the Hariris are leaning towards taking a fixed rate mortgage with that bank. While financial experts say that over the long term borrowers do better with variable rates, new buyers often opt for the peace of mind that fixed rates offer.

And while the Hariris are not using a mortgage broker to help them hammer out the best deal possible, it is an increasingly popular option. Last year 33 per cent of purchasers used mortgage brokers, up from 27 per cent the prior year, according to a CMHC survey.

Do Some Research

Mortgage brokers, who are typically paid on a commission basis by lenders, may save borrowers some money on the rates and terms they negotiate, but Ms. Volk says a large part of their role is educating people. “The main things to watch for is terms and conditions of the mortgage.”

With the recent drop in mortgage rates, Ms. Volk says many people have been dismayed to find they cannot take advantage of potentially huge interest rate savings because the “break fee” to get out of their current mortgage is prohibitive. Interest penalties for getting out of your mortgage early vary and may take the form of a three-month interest payment or interest rate differential charge. Make sure to get your lender to spell out the break fee to you, and get it on paper.

Some lenders offer “blend and extend” options which can allow some borrowers to get at least some of the benefit of lower rates. Typically, the penalties for breaking the original mortgage are included in the blended rate calculation so borrowers are not faced with an upfront charge.

Pre-payment privileges are also something first-time buyers should seek for two reasons: Because they are typically early in their careers, they can reasonably expect higher take-home earnings through promotions or switching employers for a better paying job and are able to make additional payments to the mortgage. As well, the interest on mortgages is front-end loaded, meaning that the majority of payments in the early years of 25-year amortization mortgage go to interest, not principal.

The Math

Here is why shopping around for the best rate possible is no trifling matter. Take a half-point interest rate difference on a 5-year, $500,000 mortgage with a 25-year amortization period. With a 5.75 per cent rate, the mortgage holder would have monthly payments of $3,125.11 versus $2,979.59 at 5.25 per cent. That doesn't sound like much until you run the 5-year amortization schedule. At the higher rate, the buyers made mortgage payments of $187,506.60, with 72 per cent of that, or $135,086.29, going towards interest payments. At the 5.25 per cent rate, the mortgage holders not only pay $178,775.40 less, but 68.8 per cent or $123,032.28 less goes to interest and more to chipping away at the principal. The difference? A total of $8,731.20 less in payments - $12,054.01 in interest saved and an extra $3,322.81 to the reduction of the principal owed.

For access to a Mortgage Calculator and other financial tools, visit my website here. 

What Goes Up Doesn't Always Come Down

     Following is an article by Tony Wong as it appeared in the Aug 26th edition of the Toronto Star:  What happens if you had a recession and housing prices didn't really go down?  That's the scenario Toronto could be in by the end of 2009, as economists scramble to revise forecasts. 

Toronto housing economist Will Dunning is forecasting that the average price of an existing home in the Greater Toronto Area will be $378,700 by the end of this year. His previous forecast was for prices to decline to $358,100, or about 5.6 per cent from 2008. That's in line with the estimates of about a 5 per cent decline from most major housing analysts.

"The forecast has been raised substantially," Dunning says. "For the past three months, resale activity has been much stronger than I had been anticipating."

A $378,700 price is spitting distance of the $379,347 average price recorded at the end of 2008. Dunning says this year's average price could surpass last year's.

Under that scenario, prices would have increased every year since 1996 – a total of 13 straight years.

Not bad, considering that consumers have been repeatedly told this is the biggest economic downturn in North America since the Great Depression.

"These kinds of price increases are not what we expected at all," says Sal Guatieri, senior economist with BMO Capital Markets. "Given the economic backdrop, no one expected housing to bounce back the way it has."

Those who remember the previous recession won't soon forget a housing downturn that lasted for seven years. Average prices plummeted from $273,698 in 1989 to $198,150 at the bottom in 1996.

It is almost inconceivable to think this recession may not see even one year of retreating prices. But it's possible.

"I guess if you make things affordable enough, it will generate demand.

"And all that impact on affordability has been on the backs of lower mortgage rates," says Guatieri.

According to a Desjardins Bank report released yesterday, affordability is deteriorating as average prices rise in Ontario.

Still, the provincial market remained affordable despite the increase in prices. The bank warns, however, that "if this trend holds, the market's journey into affordable territory will be short lived."

Guatieri calls the housing climate "bizarre" and worries that some consumers may be stretching themselves to get into the market.

"You have to wonder (if) in two or three years mortgage rates go back to normal levels whether they will still be able to afford the properties," says Guatieri.

The rebound's strength is even more surprising, since the year began with sales down by 50 per cent in January. The market started to show positive territory in May, with a 2 per cent increase, then posted two consecutive records, a 27 per cent increase in June and 28 per cent in July.

Data for the first two weeks of August show that this year's cumulative existing home sales have surpassed last year's sales at the same time.

Guatieri says the bubble of the 1980s was driven partly by speculators, while affordability with double-digit interest rates was "stretched to ridiculous levels."

This time housing prices are still growing faster than income levels, but affordability was not as stretched thanks to a low-interest-rate policy by the central bank.

Most economists think the party will have to slow at some point.

"Over longer periods, growth of employment is the critical factor, as it generates a need to expand the housing stock," says Dunning. "With employment having fallen since last fall, there is limited need for new housing activity."

If you're thinking of making a move and would like to know how I can help, feel free to contact me for more info.