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

       Following is TREB's market report for mid-November 2010:  Greater Toronto REALTORS® reported 3,076 sales through the Multiple Listing Service® (MLS®) during the first two weeks of November 2010.  This represented a 16 per cent decrease compared to the 3,666 sales recorded during the same period in November 2009. Year-to-date sales amounted to 78,526 – up slightly from the 2009 total.

“The number of transactions remained high relative to new listings through the first half of November, promoting a healthy rate of price growth compared to last year,” said Toronto Real Estate Board President Bill Johnston.

The average price for November mid-month transactions was $437,554 – up more than five per cent compared to the average of $415,066 recorded during the first 14 days of November 2009.

“Mortgage payments on the average priced home remain affordable in the GTA based.  This is why the average selling price continues to increase,” 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: October 2010 Statistics

     Following is TREB's market report for October 2010:  Greater Toronto REALTORS® reported 6,681 sales through the Multiple Listing Service® (MLS®) in October 2010.  This represented a 21 per cent decrease compared to the 8,476 sales recorded in October 2009.  Through the first ten months of the year, sales amounted to 75,582 – up one per cent compared to the January through October period in 2009.

“The annual change in sales and average selling prices has been quite uniform across the GTA and by property type as the market has balanced out from record levels of sales in the second half of 2009 and first few months of 2010,” said Toronto Real Estate Board (TREB) President Bill Johnston.

“The composition of GTA home sales does differ depending on location.  Condominium apartments accounted for 42 per cent of total sales in the City of Toronto and almost 60 per cent of sales in TREB’s central districts,” Johnston continued.  “In regions surrounding the City of Toronto, in contrast, low rise home types accounted for almost 90 per cent of transactions.”

The average price for October transactions was $443,729 – up five per cent compared to the average of $423,559 reported in October 2009.  The average selling price through the first nine months of the year was $430,802.

“The average selling price in the GTA has continued to grow relative to 2009 because home ownership has remained affordable,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.  “A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home.”

“The outlook for mortgage rates and income growth over the next year is favorable.  The average home selling price could increase moderately next year and remain affordable for the average GTA household,” continued Mercer.

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.

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.

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

        Following is TREB's market report for mid-October 2010:  Greater Toronto REALTORS® reported 3,012 sales through the Multiple Listing Service® (MLS®) during the first two weeks of October 2010.  This represented a 17 per cent decrease compared to the 3,631 sales recorded during the same period in 2009.  Year-to-date sales amounted to 71,988, representing a three per cent increase compared to 2009.

“The GTA resale market is balancing out from the record level of sales experienced in the second half of 2009 and first few months of 2010.  This is why sales figures have been lower than 2009 levels in recent months.  With this said, it should be noted that the annual rate of decline slowed somewhat through the first two weeks of October,” said Toronto Real Estate Board President Bill Johnston.

The average price for October mid-month transactions was $444,644 – up seven per cent compared to the average of $414,479 recorded during the first 14 days of October 2009.

“We are seeing enough buyers relative to sellers to promote continued price growth year-over-year. People are buying because home ownership remains affordable in the GTA.  A household earning the average income can comfortably afford a mortgage on the average priced resale home,” 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: September 2010 Statistics

     Following is TREB's market report for September 2010:  Greater Toronto REALTORS® reported 6,310 sales through the Multiple Listing Service® (MLS®) in September 2010. This represented a 23 per cent decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up four per cent compared to the first three quarters of 2009.

"The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA," said Toronto Real Estate Board President Bill Johnston.

The average price for September transactions was $427,329– up five per cent compared to the average of $406,877 reported in September 2009. The average selling price through the first nine months of the year was $429,657.

"Resale homes in the GTA remain affordable," said Jason Mercer, TREB's Senior Manager of Market Analysis.

"It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability," continued Mercer. "The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lending guidelines. This is why the average home selling price has continued to grow."

Median Price In September, the median price was $360,325, from the $347,000 recorded during September of 2009.

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.

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.

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

     Following is TREB's market report for mid-September 2010:  Greater Toronto REALTORS® reported 2,623 sales through the Multiple Listing Service® (MLS®) during the first two weeks of September 2010.  This represented a 22 per cent decrease compared to the 3,361 sales recorded during the same period in 2009. Year-to-date sales amounted to 65,455, representing a six per cent increase compared to 2009.

“Sales remain below the record pace we experienced in the second half of 2009.  The prospect of higher interest rates and new mortgage lending guidelines resulted in higher than normal sales in the first few months of the year.  To balance this out, the pace of sales has slowed in the second half,” said Toronto Real Estate Board President Bill Johnston.

“It is important to note that year-to-date sales remain above the number reported through the same period last year,” added Johnston.

The average price for September mid-month transactions was $412,367 – up five per cent compared to the average of $393,818 recorded during the first 14 days of September 2009.

“Under current lending standards, the average selling price is affordable for a household earning the average income in the GTA.  The annual price growth we have been experiencing has been justified by this positive affordability picture,” 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.

Will Mutliple-Offers Make A Comeback This Fall?

On Tuesday I helped a client of mine purchase a great 2 bedroom + den/2 bathroom condo in St Lawrence Market.

The unit had only been on the market for 5 days, yet we found ourselves competing with two other buyers.

The sellers purposely listed the property approx 5-6% under market value and held-back on reviewing offers until after the long weekend.

Needless to say, the property sold firm for over asking.

Sifting through the listings that popped up this week I noticed that a few other sellers are choosing to go with the “Hold-Back on Offers” strategy.

How will this play out for them?

It'll be interesting to watch and see.

It's no secret that our market has experienced an increase in supply and a decrease in demand over the past few months.

And "multiple-offer scenarios" certainly haven't been happening nearly as much.

I can tell you that if a property is under priced, shows well, and is located in a highly desirable area, it'll likely attract strong interest, no matter what the "norm" is.

Will multiple-offers make a comeback this Fall?

That depends largely on what sort of prices sellers are expecting to get, how many motivated buyers are in the market, and what's out there for these buyers to choose from.

We'll 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.

Toronto Real Estate Market Report: August 2010 Statistics

       Greater Toronto REALTORS® reported 6,232 sales through the Multiple Listing Service® (MLS®) in August 2010. This represented a 22 per cent decrease compared to the 8,035 sales recorded during the same period in 2009. New listings decreased by one per cent year-over-year to 10,488.

"The prospect of interest rate hikes and new mortgage lending rules prompted some households to purchase a home sooner than they otherwise would have this year. The result has been a larger than normal dip in sales over the summer months. With this said, it is important to recognize that sales on the year were eight per cent higher than in 2009," said Toronto Real Estate Board President Bill Johnston.

The average price for August transactions was $411,012 – up six per cent compared to the average of $387,921 reported in August 2009.

"Market conditions have remained tight enough to support higher home prices in comparison to last year. Under current mortgage lending standards, a household earning the average income in the GTA can comfortably afford the mortgage payments on an average priced home. Market conditions and the affordability picture would have to change dramatically before a sustained drop in the average selling price would take place," 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.

Did You Know That Your Childhood Home Is Featured In Arcade Fire’s New Music Video?

       Some of you may be thinking, "This is a Toronto real estate blog.  What the hell are you doing posting about Arcade Fire's latest music video?"  Well, I'd argue that this post is related to real estate, in a way.  And besides, it's my blog and I get to post what I want!

The new video was released today and it's getting a ton of attention, not only because it features a brilliant track from a band that's at the peak of its powers, but beacuse it's an interactive experience that's unique to each individual viewer.  The video utilizes Google Maps, Google Street View, HTML 5 programming, and a bunch of other computer-y stuff to create something we haven't quite seen before.  

The above YouTube clip isn't the full video - it's just a teaser.  To view the video as it's meant to be seen go to www.TheWildernessDowntown.com.  There you'll be asked to enter the address of the home where you grew up.  What follows is a series of images unfolding in multiple windows, all to the tune of Arcade Fire's "We Used To Wait".  It's a mixture of music, film, animation, images from the viewer's own neighbourhood, and more.

One caveat though: Apparently the video is a bit clunky on some browsers.  For the best possible experience it's recommended that the video be viewed in the Google Chrome browser, which you can download here.  Any browser that supports HTML 5 should be fine though.

For a deeper look into how the video was created take a look at the Chrome Experiments page here.

Cheers!

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

     Greater Toronto REALTORS® reported 2,732 sales through the Multiple Listing Service® (MLS®) during the first two weeks of August 2010.  This represented a 29 per cent decrease compared to the 3,832 sales recorded during the same period in 2009. New listings, at 4,770 were down eight per cent compared to the first two weeks of August 2009.

“Throughout the better part of the last year, the number of monthly sales was well above the expected long-term trend. Accordingly, it makes sense that the number of transactions has dipped over the past few months in comparison to last year’s record results,” said Toronto Real Estate Board President Bill Johnston.

The average price for August mid-month transactions was $412,934 – up eight per cent compared to the average of $383,796 recorded during the first 14 days of August 2009.

“We have seen a sufficient number of buyers relative to sellers over the summer months to support continued year-over-year price growth in the GTA,” 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.

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!

Toronto Real Estate Market Report: July 2010 Statistics

       Greater Toronto REALTORS® reported 6,564 sales in July – a 34 per cent dip from the record 9,967 sales reported in July 2009. New listings, at 10,825, dropped to the lowest level for the month of July since 2002.  “The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring,” said Toronto Real Estate Board (TREB) President Bill Johnston.

Total sales through the first seven months of 2010 were up by 12 per cent compared to the same period in 2009.

Notwithstanding the fact that price trends vary at the neighbourhood level in GTA, the average price for July transactions was $420,482, representing a six per cent increase over July 2009.  Over the first seven months of 2010, the average selling price was up 12 per cent annually to $432,253.

“Market conditions promoting annual growth in the average selling price have remained in place.

While July sales were down compared to last year, the number of new listings in the marketplace also fell. This means there was enough competition between buyers to exert upward pressure on price,” 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.

Who's Going To Buy My Property If They Also Have To Assume My Tenant?

     In the Toronto real estate market, tenanted properties come up for sale all the time.  Listings for houses with basement tenants, for example, are quite common.  And there’s certainly no shortage of renter-occupied condos for sale.  There’s one very important distinguishing question for the potential buyer of such a property though, “Can I take vacant possession or do I have to assume the tenant?”

If the tenant must be assumed (i.e. they’re not yet at the end of their lease term and arrangements can’t be made for an early termination) the pool of potential buyers shrinks significantly.  Essentially, all that’s left are landlord/investors or buyers who love the property so much that they’re willing to become landlords themselves until they can move in at the end of the lease term.

In the case of a house with a basement tenant, it’s not so much of an issue.  There are actually a number of buyers looking specifically for a house with basement rental income to help pay their mortgage.  So the fact that there’s an existing tenant can be a real bonus.

With condos and lofts however, a tenant that must be assumed can prove to be a tougher sell.  These properties often sit on the market longer than others.  Not always though...

Just this month I worked with a buyer from Ottawa looking to purchase a condo for investment purposes.  We started out visiting the sales center for DNA 3 in the King Street West/Liberty Village area but then decided that a resale property was a better alternative for her (Pre-Construction versus Re-Sale is a subject worthy of its own entire blog post, so I won’t get into it here...). 

We spent a few days viewing what was on the resale market, crunching numbers, and talking through the different scenarios at hand (“How much do you think we could rent this suite for versus that one?”  “Which of these 3 buildings has the best potential for future value growth?”  “Could we get more money if we rent out the parking space separately?”). 

One of the best properties we saw actually already had a tenant in it and they were only halfway through their lease term.  In the end, this is the one my client chose.  She was happy to buy this particular condo knowing that she could assume the tenant and immediately start collecting rent without having to spend the time, money, and effort required to find and qualify a tenant from scratch.

This is a great example of a situation where having to assume the existing tenant actually worked in the seller’s favour.  Generally, these properties can take longer to sell.  But here the sale happened quite quickly.  As so often happens in real estate, it was a matter of the right buyer coming along at the right time.

If you’ve got a tenanted property to sell and would like to find out more about my services, feel free to contact me for more info.      

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

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

Greater Toronto REALTORS® reported 4,139 sales through the Multiple Listing Service® (MLS®) during the first two weeks of June 2010.  This represented a 20 per cent decrease compared to the 5,185 sales recorded during the same period in 2009.  New listings increased by 21 per cent annually to 7,985...

“The pace of existing home sales in the GTA has slowed to more normal levels following a record-setting start to 2010,” said Toronto Real Estate Board President Tom Lebour.

“Due to higher mortgage carrying costs, sales in the second half of 2010 will not be as high as what was experienced during the last six months of 2009.”

The average price for June mid-month transactions was $437,039 – up seven per cent compared to the average of $407,716 recorded during the first 14 days of June 2009.

“The seller’s market conditions experienced during the first few months of the year have given way to more balanced conditions. Home buyers are experiencing more choice,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “With more choice in the market place, price growth is starting to slow.”

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: June 2010 Statistics

     Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June.  This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009.  Sales for the second quarter of 2010 amounted to 28,810 – up one percent annually.  Year-to-date sales through June were up 23 per cent to 50,455compared to the first six months of 2009.

“We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year,” said newly elected Toronto Real Estate Board President Bill Johnston. “The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates.

”The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.

“With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers.  This has resulted in less upward pressure on the average selling price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.  “The annual rate of average price growth in the second half of 2010 will be in 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.

The Benefits Of Signing A Buyer Representation Agreement

     The Toronto Real Estate Board recently posted the above video on their YouTube channel.  While it does a good job of pointing out some of the reasons why one should sign a Buyer Representation Agreement, I thought I could expand on this a bit further.

For starters, here’s a list of some of the key benefits of signing a B.R.A. (this list and more info can be found on TREB’s website dedicated specifically to the B.R.A., www.brafirst.ca):

• Reassurance of the duties the brokerage owes to the buyer.
• Included in those duties is full disclosure of all property information known to the  brokerage about a particular property
• These duties help to ensure that you receive expert, professional advice from your REALTOR
• A listing on the Buyer Registry Service, so selling REALTORS can find you easily because your home “must-haves” can be registered
• Peace of mind that your best interests will be protected
• Diligent and attentive service

What is a Buyer Representation Agreement?

Essentially, the B.R.A. is a contract between a real estate brokerage and a buyer.  The brokerage promises to provide a set of services and owes the buyer a number of fiduciary duties (accountability, confidentiality, full disclosure, etc.).  In return, the buyer agrees to work exclusively with the brokerage in their search for a home.

Among other things, the B.R.A. also specifies the geographical boundaries of the home search, the type of property being searched for (e.g.  “single-family residence”), and the commission that the brokerage shall receive (which is most often paid by the listing brokerage or the seller).

If I sign a Buyer Representation Agreement do I have to purchase a home?

It’s important to note that, while a B.R.A. is an exclusive contract, there is nothing in the agreement that says you must buy anything.  I’ve had buyer clients change their plans, mid-contract, and decide that it’s just not the right time for them to purchase a home.  No problem.

When should the Buyer Representation Agreement be signed?

Realtors are required to have a B.R.A. signed prior to their buyer clients signing an offer-to-purchase a property.  Generally, it's best to have the B.R.A. signed and dealt with as early as possible so that everyone involved is fully aware of the all aspects of the buyer-agent relationship. 

While there are some realtors out there who won’t even step foot into a property with a buyer client until they’ve signed a B.R.A., I personally like to go out once or twice with them before we make that commitment.  It’s a two-way street and not only does a buyer have to be comfortable moving forward with me as their realtor, I need to be comfortable with taking them on as a client. 

If you've got any questions about the B.R.A. or would like a more detailed explanation of its contents, feel free to give me a shout.

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: June 2010 Mid-Month Statistics

       Greater Toronto REALTORS® reported 4,139 sales through the Multiple Listing Service® (MLS®) during the first two weeks of June 2010.  This represented a 20 per cent decrease compared to the 5,185 sales recorded during the same period in 2009. New listings increased by 21 per cent annually to 7,985.

“The pace of existing home sales in the GTA has slowed to more normal levels following a record-setting start to 2010,” said Toronto Real Estate Board President Tom Lebour.

“Due to higher mortgage carrying costs, sales in the second half of 2010 will not be as high as what was experienced during the last six months of 2009.”

The average price for June mid-month transactions was $437,039 – up seven per cent compared to the average of $407,716 recorded during the first 14 days of June 2009.

“The seller’s market conditions experienced during the first few months of the year have given way to more balanced conditions. Home buyers are experiencing more choice,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “With more choice in the market place, price growth is starting to slow.”

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.

When's The Best Time To Both Buy And Sell Real Estate?

       I was recently speaking with a couple of friends who are thinking of selling their condo and moving into something bigger.  "We're hearing that prices are cooling off - should we wait awhile before making a move?"  Good question.  Unfortunately, there isn't one catch-all answer. 

If these guys didn't have a property to sell and were only buying into the current market I'd have one set of suggestions for them.

If they were only selling and weren't buying (because they were moving away from Toronto or moving into a rental, etc) I'd have another set of suggestions.

However, they're talking about selling and buying in the same market.  Since they're doing both, the particular conditions of the market are (arguably) less of an issue.  In other words, if it's a Buyer's Market and prices have cooled, they'll suffer as sellers but they'll benefit as buyers.  And vice versa if it's a Seller's Market.

For example, let's say you want to sell your 1-bedroom condo and move up to a 2-bedroom suite.  And let's say that it's shifted from a Seller's Market to a Buyer's Market and prices are on average 5% less than what they were 6 months ago.  If you'd have sold your 1-bedroom suite 6 months ago you might've gotten $300,000 for it.  But the market has shifted and now you're like to get $285,000.  Clearly, selling has lost a bit of its appeal.

Don't forget though, you're also purchasing a larger (and presumably more expensive) 2-bedroom suite.  While this property might've cost you $400,000 if you bought 6 months ago, the market shift (5%) means that you're likely to pay only $380,000 for it now.  So, the appeal that was lost on the selling side is more than made up for on the buying side.  In fact, you're actually ahead of the game, to the tune of $5000 ($20,000 - $15,000).

Of course, this is just one possible scenario out of many.  What if you're selling in an area that isn't very "hot" but you're buying into one that is?  You have to keep in mind that certain areas of the city can appreciate/depreciate more than others during any upswing/downturn.  This has to do with a number of factors (supply & demand within that particular area, recent gentrification, etc). 

And what if you're selling within the downtown core but purchasing outside of the city.  Well, these are different markets and care needs to be taken in evaluating what's happening in each respective area.

As I said, there isn't one catch-all answer to this question.  Generally though, I would suggest that if you're selling and buying in the same market you're better to place less weight on current market conditions and more weight on other factors ("Have I outgrown my current home?"  "Am I ready for a change?"  "Are the circumstances right for me to make a move at this time?"  "Should I take advantage of attractive mortgage rates?"  "Etc..."

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.