Toronto Real Estate Market Report: May 2010 Statistics

     Greater Toronto REALTORS® reported 9,470 sales through the Multiple Listing Service® (MLS®) in May, representing a one per cent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.

"The pace of transactions slowed in May following record‐setting sales in February, March and April,” said Toronto Real Estate Board President Tom Lebour. “Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes.”

New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – up 13 per cent compared to the average of $395,609 recorded in May 2009. 

"The gap between listings and sales has widened, which means there is more choice for buyers," said Jason Mercer, TREB's Senior Manager of Market Analysis. “The annual rate of price growth will slow in the second half of 2010, from the current double digit pace into the single digits.”

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.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: May 2010 Mid-Month Statistics

       Greater Toronto REALTORS® reported 4,887 sales through the Multiple Listing Service® (MLS®) during the first two weeks of May.  This represented a seven per cent increase compared to the 4,561 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 10,059.

“The average household looking to purchase a home continued to benefit from affordable opportunities in the first half of May,” said Toronto Real Estate Board President Tom Lebour.

"The number of done deals will remain high for the remainder of 2010, but will dip from record levels.”

The average price for May mid-month transactions was $448,641 – up 12 per cent compared to the average of $399,811 recorded during the first 14 days of May 2009.

"The total number of homes currently listed in the GTA is now within a more normal range. As buyers benefit from more choice in the second half of 2010, average selling prices will grow at a slower pace," said Jason Mercer, TREB's Senior Manager of Market Analysis.

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.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

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.

Toronto Real Estate Market Report: April 2010 Statistics

       Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries.

“The GTA resale market is functioning properly. Sales were high as buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour.  “More balanced market conditions will result in sustainable rates of annual price growth in the second half of 2010.”

The average price for April transactions was $437,600 – up 13 per cent compared to the average of $385,641 recorded in April 2009.

"Home sales continue to be driven by many different segments of the market, with sales growth for all major home types in both the City of Toronto and surrounding 905 regions," said Jason Mercer, TREB's Senior Manager of Market Analysis. "Home sales will remain strong in the second half of 2010, but will slip from the current record pace as borrowing costs rise.”

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.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Great Deals For A Great Cause

     There are a number of reasons that I'm proud to have Royal LePage as my brokerage.  Sitting near the top of this list is the fact that I get to contribute to and be a part of the Royal LePage Shelter Foundation.  It has the distinction of being Canada’s largest public foundation dedicated exclusively to funding women’s shelters and violence prevention and education programs. 

On Saturday, May 15th, Royal LePage offices all over the country will be participating in the foundation's 2nd annual National Garage Sale for Shelter, with 100% of the proceeds going to help women and children living with abuse.  My office, located at 905 King Street West (at Strachan Ave) will be joining in.  The hours are from 8:00am - 2:00pm and we'll be serving coffee, breakfast sandwiches, and cupcakes, as well as live music and raffles. 

Right now we're looking for donated items for the garage sale.  If you've got anything that you're happy to part with for a good cause, give me a shout and we'll schedule a time to swing by and pick it up.

Acceptable items for donation are as follows:

• Furniture in good condition
• Books
• CD's & DVD's
• Small appliances & electronics
• Toys with all parts
• Jewelry
• Kitchen ware
• Decorative accessories like candleholders, art prints, etc
• Sporting goods
• Tools

To learn more about the Royal LePage Shelter Foundation, check out their website here and their Facebook Page here.

Looking forward to a great turnout on the 15th and a successful garage sale!

Toronto Real Estate Market Report: April 2010 Mid-Month Statistics

     Greater Toronto REALTORS® reported 4,601 sales through the Multiple Listing Service® (MLS®) during the first two weeks of April.   This represented a 25 per cent increase compared to the 3,681 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 9,512.

“The fact that annual growth in new listings outstripped growth in sales suggests that the GTA existing home market is becoming better supplied,” said Toronto Real Estate Board President Tom Lebour.

"Home owners are reacting to strong sales and price growth by listing their homes in greater numbers. They are confident they will receive offers in line with their asking price."

The average price for April mid-month transactions was $430,271 – up 12 per cent compared to the average of $383,361 recorded during the first 14 days of April 2009.

"The average annual rate of price increase has declined and we are shortly going to see a return to sustainable single-digit rates of growth," said Jason Mercer, TREB's Senior of Market Analysis.

"As home buyers experience more choice in the marketplace, there will be less upward pressure on the average selling price in the GTA.”

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.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

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.

Toronto Real Estate Market Report: March 2010 Statistics

     Greater Toronto REALTORS® reported 10,430 sales through the Multiple Listing Service® (MLS®) in March, pushing total first quarter 2010 sales to 22,418 – the best result on record under the current Toronto Real Estate Board (TREB) boundaries. The average price for March transactions was $434,696. The average price for the first quarter was $427,948.

"The strong rebound in the existing home market was one of the initial drivers of economic recovery," said TREB President Tom Lebour. "While we don't expect to see the same rates growth moving forward, GTA households will remain confident in ownership housing as a quality long-term investment, especially as economic recovery expands across all industries."

The annual rate of growth for new listings continued to accelerate in March. The number of new listings grew by 42 per cent compared to March of 2008.

"The average home price in the GTA will continue to grow this year, but the pace will slow as we move through the spring," said Jason Mercer, TREB's Senior Manager of Market Analysis. "As growth in new listings starts to outstrip growth in sales, buyers will experience more choice, resulting in more sustainable single digit rates of average price 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.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

A Good Realtor Has Their Finger On The Pulse Of The Market

       The recent issues between the Canadian Real Estate Association and the Canadian Competition Bureau have sparked a handful of fruitful conversations between myself and friends, clients, etc, over the past few weeks.  I've found myself more than once listing off the many ways a person benefits by using a realtor to buy or sell their home.  Sitting near the top of this list is the detailed knowledge a realtor has of the market in both broad and specific terms.

An experienced, active realtor is out there in the trenches everyday and has their finger on the pulse of what's happening in the market, on both macro and micro levels.  On a macro level, a realtor will be able to tell you that "the combination of low interest rates plus the low inventory of houses for sale is contributing to rising house prices."  Fine.  But really anyone can read the real estate section of the Toronto Star and see that this is the case. 

On a micro level however, a good realtor will know specifically that "one-bedroom + den suites in this particular building have been selling on an average increase of 0.5% per month since June, but you shouldn't pay as much for one of the north-facing suites because they have these awkward hallways leading towards the master bedroom that essentially waste 75 square feet of floor space whereas the south-facing suites don't have any wasted space..." 

In other words, realtors not only have access to a wealth of sales history information and market statistics - we're also putting this information to use in real-world situations on an ongoing basis. 

We're actively stepping foot into properties, assessing the pros and the cons, analysing values for buyer clients, preparing CMA's for seller clients, etc...  These are the daily activities that an active realtor is involved in and it's this constant engagement with the market that breeds a very specialized sort of knowledge and allows us to keep our finger on the pulse of the market.

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.

Toronto Real Estate Market Report: March 2010 Mid-Month Statistics

     Greater Toronto REALTORS® reported 4,353 sales through the Multiple Listing Service® (MLS®) during the first two weeks of March.  This represented a 70 per cent increase compared to the 2,562 sales recorded during the same period in 2009 when resale transactions had dipped markedly due to the recession.  The mid-month sales total was also 16 per cent higher than the previous March midmonth high reached in 2006. 

“The spring-like weather in the first half of March brought the first green sprouts of the recurring spring market. Every year, monthly sales climb steadily through May,” said Toronto Real Estate Board President Tom Lebour. "People are buying homes because they are confident in the current economic recovery and mortgage payments on the average priced home remain affordable."

The average price for March mid-month transactions was $440,153 – a 20 per cent increase over 2009. New listings within the Toronto Real Estate Board boundaries were up 34 per cent to 8,540.

"Look for double-digit annual price increases to cease later in 2010, as new listings rebound from the low levels experienced in 2009," said Jason Mercer, TREB's Senior Manager of Market Analysis. "Increased listings will give buyers more choice, resulting in less upward pressure on home prices.”

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.

For complete copies of TREB's Monthly Market Watch Reports, visit my archives here.

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.

Toronto Real Estate Market Report: February 2010 Statistics

     Greater Toronto REALTORS® reported 7,291 sales through the Multiple Listing Service® (MLS®) in February, representing a 77 per cent increase over February 2009. The average price for these transactions was up 19 per cent year-over-year to $431,509. Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.

“Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise home types. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said TREB President Tom Lebour. “This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.”

New listings also increased in February, climbing 24 per cent compared to the same month last year.

“Annual growth in new listings is expected to continue. New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable single-digit rates of price 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.

For complete copies of TREB's Monthly Market Watch Reports, visit my archives here.

YourTorontoProperty Is Now On Facebook And Twitter!

Late last week I flipped the switch on both my Facebook Fan Page and my Twitter account.  Both are now live and ready to connect!  You can find me by clicking on the appropriate icons in the sidebar to the right (located under "Subcription Options").  Or you can simply click on the buttons above.

Looking forward to seeing you there!

Toronto Real Estate Market Report: February 2010 Mid-Month Statistics

     Greater Toronto REALTORS reported 3,555 sales through the Multiple Listing Service during the first two weeks of February.  This represented a 74 per cent increase compared to the 2,044 sales recorded during thesame period in 2009 when resale transactions had dipped due to the recession. The  February mid-month sales total was also 7.7 per cent above the previous high set in 2006.

"Home ownership demand remains strong in the GTA, as households remain confident that economic recovery is at hand and that ownership housing will continue to be a quality long-term investment," said Toronto Real Estate Board President Tom Lebour.

The average price for February mid-month transactions was $429,997 - an 18 per cent increase over 2009. New Listings within the Toronto Real Estate Board boundaries were up 15 per cent to 6,212.

"Double-digit price increases will persist through the first quarter of the year," said Jason Mercer, TREB's Senior Manager of Market Analysis. "However, as new listings continue to increase creating a better supplied market, we will see the annual rate of price growth moderate into the single digits."

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.

For complete copies of TREB's Monthly Market Watch Reports, visit my archives here.

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.

Is A Home Inspection Condition Always Necessary When Purchasing A House?

     I showed a property to some clients of mine a few weeks ago, a fixer-upper in the Parkdale area.  We all agreed that the house had plenty of character but that it would potentially need plenty of work as well.  There were 16+ offers on the table come offer night and it sold FIRM for more than $100,000 over asking.  The thing to note here is that the property sold FIRM - no home inspection condition.

Shouldn't you always include a condition in your offer-to-purchase that allows for a home inspection?

I certainly wouldn't advise a client to make a purchase without having an inspection done.  Reason being, there are sometimes underlying issues with a property that are not obvious to the untrained eye.  Having a professional come in and spend a few hours doing a thorough inspection is crucial if the buyer is to make an informed decision.

This isn't to say that a buyer shouldn't move forward on a property just because the inspection report isn't perfect.  Older homes are almost always going to have some issues (the boiler may be nearing the end of its life expectancy, there may be some dampness in the basement, etc).  But having an inspection done will shed some light on what the potential issues are and the buyer can proceed accordingly.

Getting back to the house in Parkdale...  Even though the property sold FIRM on offer night doesn't mean that a home inspection wasn't done.  Any number of the 16+ potential buyers may have had an inspector come in at some point during the week that the property was on the market.  This is actually quite common in a seller's market where offers are "held-off" until a specified date (generally a week-or-so after the property first comes on the market).   I touched on this in a previous post, which you can read here.

In this way buyers still get the benefit of having a complete, thorough home inspection done prior to making a purchase without actually having to include a home inspection condition in their offer.  The work is done ahead of time so that they can come to the table with a clean offer, thereby bettering their chances of getting the property. 

For more info on submitting an offer, 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.

Toronto Real Estate Market Report: January 2010 Statistics

     Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough. Last month’s sales were slightly higher than the January average in the five years preceding 2009.

“The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour. “Increasingly confident consumers moved to take advantage of affordable home ownership.”

The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.

“Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The rate of sales and price growth will be lower in the second half of 2010.”

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.

For complete copies of TREB's Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: January 2010 Mid-Month Statistics

     Greater Toronto REALTORS® reported 1,749 existing home sales on the Multiple Listing Service (MLS®) during the first two weeks of January. This result was almost double the 888 sales reported for the same period in 2009, when sales had dipped to a recessionary low.

“We have had a strong start to 2010,” said Toronto Real Estate Board President Tom Lebour.  “Widespread sales growth in terms of geography and housing type indicates that many households remain confident in their ability to purchase and pay for a home over the long-term.”

The average price for transactions in the first two weeks of January was $395,307, compared to an average of $332,495 for the same period in 2009.

“Double-digit average annual price growth will continue through the first quarter of 2010 as sales remain high relative to listings and we continue to make comparisons to last year’s winter downturn,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

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.

For complete copies of TREB's Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: December 2009 Statistics

     Greater Toronto REALTORS® reported 87,308 MLS transactions in 2009 – a 17 per cent increase over 2008. This result included 5,541 sales in December. The 2009 result was in line with the healthy levels of sales experienced between 2004 and 2006, but lower than the record of 93,193 set in 2007.

“After a slow start to the year, existing home sales rebounded during the second half of 2009,” said TREB President Tom Lebour. “As consumer confidence improved, many households moved to take advantage of affordable home ownership opportunities in the GTA. The strong residential real estate sector was a key contributor to overall economic recovery in Canada.”

The average home price in 2009 climbed four per cent to $395,460. The average price for December transactions was $411,931.

“Market conditions became very tight in the latter half of 2009. Sales climbed strongly relative to the number of homes listed for sale, resulting in robust price growth that more than offset average price declines in the winter,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “A greater supply of listings in 2010 will see home prices grow at a sustainable pace."

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.

For complete copies of TREB's Monthly Market Watch Reports, visit my archives here.

What Can We Expect From The The Toronto Real Estate Market As We Enter 2010?

     Needless to say, 2009 was an interesting year for the Toronto Real Estate Market.  Back in January we were in the depths of a major downturn that had been in effect since Fall 2008.  By late Spring/early Summer however, we were in a seller’s market and prices were on the rise.

Two of the biggest factors contributing to this turnaround are the record-low interest rates we've enjoyed and a low inventory of properties for sale.  I think it’s safe to say that both of these will continue to play a significant role in the market as we enter 2010.

Interest Rates:  This historically low cost-of-borrowing has motivated many buyers to enter the market, creating a greater demand for homes.  This demand should remain strong and will likely grow as we near June/July, which is when the Bank of Canada will raise the overnight rate resulting in a corresponding rise in mortgage rates.  No doubt there’ll be many buyers motivated to purchase while they can still take advantage of the incredibly low rates. 

Inventory:  The law of supply and demand is always at play in any real estate market.  In the Toronto market of the past 7-8 months, the increased demand for homes has not been met with an increased supply of homes.  This has resulted in multiple-offer scenarios, a steady increase in prices, and many frustrated buyers.  However, we may see more inventory hit the market in the coming months as Sellers respond to the message we've been spreading since the summer, "Now is a great time to sell!"

HST:  The arrival of the Harmonized Sales Tax in July will have an effect as well.  Many buyers will be motivated to purchase before the new tax comes into play so as to avoid having to pay more for lawyer fees, home inspections, etc.  Sellers will also want to avoid paying the higher tax on realtor fees, lawyer fees, etc.

Although no one has a crystal ball to predict exactly how things will play out, it's reasonable to expect the market to cool a bit in the second half of 2010, due primarily to the increase in interest rates.  And there are of course other factors that could have an effect on the market as well (the state of the U.S. economy, the stock market, etc...) and no one can predict exactly how these things will play out either. 

I generally advise my buyer clients that the best strategy is to purchase for long term (5 years or more) in order to realize a sufficient value increase in the property.  Buyers also need to remember that although the interest rates are attractively low right now, they need to be prepared for an increase in their monthly cost-to-carry when the time comes to renew their mortgage at a higher interest rate.

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.