Thursday 4 November 2010


October Price Growth Reflects Healthy Housing Market Conditions

November 3, 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.

Median Price
In October, the median price was $366,000, from the $357,000 recorded during October of 2009.


Tuesday 19 October 2010


How Employment History Affects Your Mortgage


You might be thinking I've got a job I can make my mortgage payments who cares beyond that?
That's not true, there are things about employment you should be looking out for that could affect your mortgage application.
Here are a couple of things you should be looking at:
1. Employment History
The longer you're working at one place of employment the better it looks on your mortgage application.
This means NO:
  • Job hopping
  • Career changes every year
Why?
You really want to show the lender that you are going to be able to continue that job for the next 4-5 years and pay back that mortgage regularly.
2. Employment Status:
You might not know, but there is a huge difference between:
  • Full-time
  • Part-time
  • Contractor
You might be getting full-time hours, but not full-time status. This status just refers to how consistent and how guaranteed your income is.
In life there are no guarantees, but the lender wants to be absolutely sure because they are signing on with you for the next 4-5 years.
If you don't know what your employment status is give your employer a call and talk with the HR department to get that clarified.
Once you have cleared that up, give your mortgage broker a call they'll be able to tell you what the differences in employment statuses are and if what you have will qualify for those really great discounted mortgage rates. If not they'll be able to provide some good tips of what to look for in the future and if you're just building up your employment history, it's a great place to start.

Thursday 26 August 2010

The Buyer Representation Agreement

Guaranteeing You the Very Best in Real Estate Service When it comes to just about every kind of contract, signing on the dotted line makes us all a little bit nervous.

When selling a home, most people are aware they sign a Listing Agreement with a REALTOR®. There is, however, an agreement that REALTORS® ask their home-buying clients to sign. It's an agreement that works in favour of buyers, guaranteeing the very best in real estate service.

The Real Estate Council of Ontario (RECO), a public agency formed to protect consumers and regulate the industry, introduced guiding principles mandating that REALTORS® ask their clients to sign a Written Representation Agreement at the earliest possible time.

When choosing representation, homebuyers have the option to sign either a Buyer Representation Agreement or a Buyer Customer Service Agreement.

The Buyer Representation Agreement signifies that for a designated period of time, the buyer has engaged a specific REALTOR® firm to work exclusively on his or her behalf at finding a property. The agreement confirms the REALTOR®'s commitment to make his or her best efforts for the buyer.

By signing the Buyer Customer Service Agreement the buyer acknowledges the Broker has provided him/her with written information explaining agency relationships including Seller Representation, Sub-Agency, Buyer Representation, Multiple Representation and Customer Service.

For more information on this important subject, call your local REALTOR®. The term REALTOR® is designated to those who have chosen to belong to local, provincial and national real estate associations, agreeing to adhere to a strict code of professional standards that ensures the highest levels of service and integrity. In Toronto, local REALTORS® belong to the Toronto Real Estate Board, Canada's largest real estate board, serving more than 30,000 Members.

Monday 23 August 2010

Tweet from: @bbgeeks

Shout out to @BGR BlackBerry Bold 9700 running OS 6 (and it is working well by all accounts) http://bit.ly/9sCO9v

sent via TweetDeck

Sent on the TELUS Mobility network with BlackBerry

The Multiple Listing Service and your REALTOR

The Multiple Listing Service and your REALTOR Like other professionals, a REALTOR is as good as the information at his or her disposal. The Multiple Listing Service is a co-operative system used by REALTOR Members of Canada's real estate boards. It is different than the consumer website www.REALTOR.ca, which offers a brief description of most properties listed on MLS systems. The Toronto Real Estate Board's Multiple Listing Service provides an ongoing inventory of available properties and other related information. With training, experience and access to this database, a REALTOR can provide invaluable assistance in buying or selling your next resale home. For sellers, a REALTOR can use the system to determine a fair listing price by performing a comparative market analysis. This analysis focuses on the geographical location of your property and describes it as accurately as possible. The database can then be searched to reveal comparable sold, active and expired properties, retrieving information such as sold price, list price and average time on the market to help determine a range of fair listing prices. For buyers, a REALTOR can match your very specific needs to all properties listed. Your REALTOR can create a profile outlining your desired price range, location and specific details like the number of bathrooms, bedrooms and fireplaces. For buyers who are geographically focused, your REALTOR can even search all active listings on a particular street and retrieve all relevant information including property description, a photograph, and assessed value. The system updates nightly, listing all potential properties that meet your particular needs and automatically emailing them to you. In helping you to determine an offer, your REALTOR can also search specific properties' historical data such as previous selling prices. As well, the MLS allows REALTORS to monitor monthly sold statistics to ensure property prices reflect current market conditions. Whether you are a buyer or a seller, the MLS system supports your REALTOR in helping you make informed decisions that lead to successful transactions. Serving Greater Toronto REALTORS®

Saturday 12 June 2010

Getting into Hot Water

Getting into Hot Water: "Hot water tanks don’t get much attention because they last for years with no maintenance. But some aggressive door-to-door sales tactics have thrust them into the news in Ontario. Here’s what you need to know about your most-ignored appliance.

"

Friday 19 March 2010

Market Watch

February Sales and Average Price Increase Annually

March 3, 2010 -- 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."

Thursday 11 February 2010

Resale housing forecast extended to 2011

Resale housing forecast extended to 2011: "

OTTAWA – February 8, 2010 – The Canadian Real Estate Association has revised its forecast for home sales via the MLS® Systems of Canadian real estate boards in 2010, and extended the forecast to 2011.

With Canadian economic growth rebounding from the recession, the unusually severe decline in sales activity in early 2009 is not expected to recur in 2010. Annual activity in 2010 is forecast to be well above the previous year’s level as a result.

CREA forecasts national activity will reach 527,300 units in 2010, up 13.3 per cent from 2009. This would represent a new annual record, standing 1.2 per cent above the previous peak in 2007. Low interest rates are expected to boost housing demand in the first half of the year, resulting in strong annual sales growth in nearly all provinces in 2010, led by British Columbia and Ontario.

National home sales activity is expected to remain strong in the first half of 2010, fuelled by low interest rates and homebuyers motivated to avoid the HST before it comes into effect in Ontario and British Columbia. Over the second half of the year, national activity is expected to trend downward as the last of pent-up demand is exhausted, interest rates begin rising, and the HST comes into effect in Ontario and British Columbia.

Interest rate increases will contribute to weaker national sales activity in 2011. National home sales activity is forecast to decline 7.1 per cent to 490,100 units in 2011, putting it on par with annual levels reported in 2005 and 2006.

“Although interest rates are expected to rise, they will still be low enough to keep affordability within reach for many homebuyers requiring mortgage financing, and support overall housing demand,” said CREA President Dale Ripplinger.

The national average home price is forecast to climb 5.4 per cent in 2010, reaching a record $337,500, with average price gains forecast in all provinces. The national average price increase will continue to reflect upward skewing from the rebound in activity among Canada’s priciest markets, particularly in British Columbia and Ontario.

The national average price is forecast to ease by 1.5 per cent in 2011. Modest average price gains are forecast for all provinces except British Columbia and Ontario, whose share of national activity is expected to ease. The shift in the contribution made by provinces toward national activity will continue skewing the annual comparison in the national average price in 2011.

The price trend is similar but less dramatic for the weighted national average price, which compensates for changes in provincial sales activity by taking into account provincial proportions of privately owned housing stock. The weighted national average price is forecast to climb 4.8 per cent in 2010, and remain stable in 2011.

“Improved financial market stability and recovering global economic growth mean that home sales activity in 2010 is unlikely to repeat the dive it experienced in late 2008 and early 2009,” said Chief Economist Gregory Klump.

“Fiscal restraint, a strong Canadian dollar and a subdued inflation outlook point to marginal interest rate increases over the next couple of years, especially if the U.S. economic recovery proves to be weak and protracted,” said Klump.

“The Bank of Canada will need time to gauge the effect of interest rate increases on Canadian economic growth,” Klump said. “It recognizes that consumer debt burdens are running high, so it will want to gauge the impact of interest rate hikes on domestic demand and overall economic growth. Changes in interest rates impact the economy with a lag, so the timing and magnitude of interest rate hikes will be tricky, given that the Bank expects the private sector to lead economic growth once temporary government stimulus spending expires,” he added.

“The decline and subsequent rebound in sales activity for homes in the upper price spectrum in some of Canada’s priciest markets skewed average prices upward in the second half of 2009 and into 2010. This segment of housing activity in Ontario and British Columbia is expected to ease beginning in the second half of 2010, causing average prices to moderate in those provinces,” said Klump.

“A downward trend in national sales activity combined with an increase in listings will result in a more balanced market. Although builders are understandably more upbeat than they were during the depth of the recession, speculative building will likely continue to be held in check. As a result, while the real estate market will become more balanced, Canada will continue to avoid the massive realignment in housing supply and demand experienced in the U.S.”

CREA Residential Market Forecast:

Residential unit sales forecast20092009 Annual percentage change2010 Forecast2010 Annual percentage change2011 Forecast2011 Annual percentage change
Canada465,2517.7527,30013.3490,100-7.1
British Columbia85,02823.4101,90019.888,800-12.9
Alberta57,7862.563,0509.164,0001.5
Saskatchewan10,8566.510,9000.411,0501.4
Manitoba13,086-3.214,0507.414,3502.1
Ontario195,8408.2223,70014.2200,300-10.5
Quebec79,2903.387,95010.985,450-2.8
New Brunswick7,003-7.37,5507.87,7002.0
Nova Scotia10,021-7.811,40013.811,5000.9
Prince Edward Island1,404-0.61,4503.31,4500.0
Newfoundland4,416-5.94,90011.05,0503.1
Residential average price forecast20092009 Annual percentage change2010 Forecast2010 Annual percentage change2011 Forecast2011 Annual percentage change
Canada320,3335.0337,5005.4332,400-1.5
British Columbia465,7252.4485,5004.2476,600-1.8
Alberta341,201-3.3357,3004.7361,7001.2
Saskatchewan233,6954.1242,5003.8248,5002.5
Manitoba201,3435.8210,3004.4215,3002.4
Ontario318,3665.3332,7004.5326,000-2.0
Quebec225,4124.7240,5006.7249,1003.6
New Brunswick154,9066.3159,4002.9164,2003.0
Nova Scotia196,6903.6200,9002.1204,7001.9
Prince Edward Island146,0444.4149,9002.6153,2002.2
Newfoundland206,37415.6222,3007.7238,9007.5

NOTE: All statistics contained in this release are obtained through analysis of the MLS® Systems of real estate Boards across Canada.

MLS® Systems are co-operative marketing systems used only by Canada’s real estate Boards to ensure maximum exposure of properties listed for sale.

About The Canadian Real Estate Association

The Canadian Real Estate Association (CREA) is one of Canada’s largest single-industry trade associations, representing more than 98,000 real estate Brokers/agents and salespeople working through more than 100 real estate Boards and Associations.

Registrants in any province who become members of organized real estate have an obligation to act in accordance with the REALTOR® Code. This Code outlines the accepted standard of conduct for all real estate practitioners who are members of a real estate Board or a Provincial Association.

CREA owns the MLS® and REALTOR® trademarks, which signify a high standard of service and identify members of CREA.

For further information, please contact:

Spencer Callaghan, Communications Officer The Canadian Real Estate Association P: 613-237-7111 or 613-884-1460 E: scallaghan@crea.ca

To view the complete release visit: http://www.crea.ca/public/news_stats/pdfs/nationalresidentialforecast2010.pdf

"

Saturday 23 January 2010


GTA new home sales up 24 per cent in 2009

Tony Wong
New home sales in the Greater Toronto area were up by 24 per cent in 2009 compared to a year earlier,
according to figures released today.
The Building Industry and Land Development Association (BILD) stated 33,165 new homes and condos
were sold in the GTA, compared to 27,153 in 2008.
Most of those sales were in the second half of the year when consumer confidence, sparked by low
interest rates, returned to the market.
The solid figures were helped by a strong December, with 3,148 home sold, representing a more than
five-fold increase over December of 2008.
The recovery was "kick started by builders slashing costs and margins on inventory and new product to
the bone," said the association.
"It was propelled by an improving economy, increased consumer confidence and overall housing
affordability."
That strength has continued into 2010. Sales in the first two weeks of January were almost double those
of the same period last year - 1,749 so far this year up from 888 at the same time in 2009, according to
figures released by the Toronto Real Estate Board on Monday.
The average price of a home in January was also up, at $395,307, compared with $332,495 in the same
month in 2009.
The board expects the strength in sales and pricing will continue for the next few months.
Source: YourHome.ca

Friday 22 January 2010


"Sales activity in 2009 came in like a lamb and went out like a lion," 

Toronto developer Jim Ritchie thought his biggest challenge last year would be persuading consumers to purchase his condominiums during the recession.

But it turned out his main problem was getting new developments to market quickly enough to satisfy demand.

"There was very little activity for six months, and then things just started to take off," said the senior vice-president of condominium developer Tridel Corp.

Tridel had shelved projects at the beginning of the year only to scramble six months later to take advantage of a market ignited by low interest rates. Another factor has been spillover demand from the existing homes market and increased consumer confidence.

The strongest December in history for sales of existing homes helped power the Canadian real estate market to a strong finish in 2009.

The Canadian Real Estate Association reported Friday that 27,744 homes traded hands in December, up 72 per cent from a year ago.

"Sales activity in 2009 came in like a lamb and went out like a lion," said CREA president Dale Ripplinger.

The average national residential price was $337,410 in December, up 19 per cent year over year.

On an annual basis, prices were up 5 per cent to a record $320,333. Sales rose 7.7 per cent, representing the fourth-best year on record.

In the Toronto market, existing home sales bettered 2008 by 17 per cent, while the average price of a home gained 4 per cent to $395,460.

Like many developers, Tridel had been expecting a slowdown in 2009, but Ritchie said sales have increased by about 15 per cent.

The company launched four projects last year and virtually all sales occurred in the second half of the year.

Another project, the Hull-Mark Centre in North York, which would likely have been shelved under earlier projections, is to be launched next week.

The developer's outlook has been helped by a lack of inventory in the resale home market that has contributed to buyers moving into the new home market.

Friday's powerhouse numbers meanwhile, did nothing to quell the concerns of some economists who say the market is looking a little frothy.

"Canadian home sales just continue to roll right along even in the face of stern warnings from policy-makers, pundits, all and sundry," BMO Capital Markets Economist Doug Porter said Friday.

Porter warns the market is not in "full-blown bubble territory quite yet ... with an emphasis on yet."

The economist said the market could continue to be heated with "a risk of further sales and price surges in the coming months ahead."

Ritchie, meanwhile, said he doesn't see a bubble.

"I haven't seen prices and values increasing to such a point that they would collapse," he said.

"The Toronto market has been incredibly resilient."

Some economists have said that Toronto-area housing prices are already overvalued by up to 6 per cent based on demographics and historical valuations.

But some steam may already be coming out of the market, which could help avoid a correction.

In December new listings rose 4.8 per cent from the previous year, the first year-over-year gain in 12 months.

Toronto Star

EDITOR'S PICKS



Tuesday 12 January 2010

GTA Resale Market Resilient in 2009

GTA Resale Market Resilient in 2009

January 6, 2010 -- 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.”

Median Price In December, the median price was $349,000, from the $305,000 recorded during December of 2008.

Friday 8 January 2010

Canada's real estate market expected to continue strong gains into the first half of 2010

- Demand and supply finding balance in the second half of the year -

TORONTO, Jan. 7 /CNW/ - Canada's residential real estate market is forecast to remain unusually strong through the first half of 2010 as economic conditions across the country improve and the stimulus impact of low interest rates continues to stoke demand, according to today's Royal LePage Market Survey Forecast and House Price Survey. As confidence in the recovery builds in early 2010, increases in average house price levels and overall market activity are expected to continue. The gradual erosion of affordability driven by higher house prices and the expected late-year modest upward movement of interest rates, together with an improvement in listings supply as confidence improves, are expected to bring the market back into balance in the second half of the year, when home price increases are expected to moderate.

"The Canadian real estate market enters 2010 with considerable momentum from an unusually strong finish to the previous year," said Phil Soper, president and chief executive, Royal LePage Real Estate Services. "The stimulus effect of low borrowing costs has contributed to a sharp rise in demand that has driven activity levels to new highs. This demand, coupled with a typical seasonal undersupply of homes for sale, should cause home prices to continue to appreciate significantly during the early months of the year. Improving supply as the year unfolds and easing demand as the cost of home ownership rises should moderate home price increases in the second half of 2010."

In contrast to the difficult months during the worst of the recession, house prices appreciated during the later part of 2009, with fourth quarter price averages surpassing averages from the fourth quarter 2008. The average price of detached bungalows rose to $315,055 (up 6%), the price of standard two-storey homes rose to $353,026 (up 5.2%), and the price of a standard condominium rose to $205,756 (up 6.4%). The first two quarters of 2009 saw significant year-over-year price declines across the housing types surveyed and the third quarter provided the first signs and saw a strong rebound in Canadian home values.

Regions that saw the strongest declines during the recession are now showing marked gains. Those regions include Toronto and the Lower Mainland, B.C. Vancouver in particular experienced a robust quarter, with home prices rising across all housing types surveyed.

"No other sector of the economy has been as highly affected by economic stimulus as housing," commented Soper. "As consumer confidence has improved, Canadians have shown a lingering reluctance to acquire depreciating assets such as consumer durables, but have embraced the opportunity to invest in real property. Predictably, the regions benefiting most from this renewed interest in home ownership are those with lower average house prices and strong economic confidence, such as Winnipeg and parts of Atlantic Canada."

Soper added, "Our forecast is built upon an expectation that interest rates will ease upward before the year's end, which should have a dampening effect on demand, allowing it to come into balance with the supply of resale homes on the market. Further, we expect to see an increasing number of homes listed for sale as the year progresses - as Canadians regain confidence in the economy, they should be more willing to enter into a large financial transaction such as the sale of a home."

REGIONAL MARKET SUMMARIES

Halifax saw varied gains across all surveyed housing types in comparison to fourth quarter 2008. Notably, more affordable homes posted the highest price increases due to the influx of workers returning from Western Canada.

Montreal saw strong gains this quarter as year-over-year price levels rose across all three housing types surveyed. Recent increases in demand have resulted in lower than normal inventory levels. Inventory levels are expected in increase in 2010. Continued demand is expected to result in moderate price levels.

House price levels in Ottawa are moderately higher this quarter compared to fourth quarter 2008 across all housing types surveyed. Fourth quarter sales activity did not slow as expected, and the demand has resulted in higher incidences of sellers receiving multiple offers, an unusual occurrence in end of year activity for this region. While inventory levels are low and there is competition among home buyers, this may abate as the government eases economic stimulus in 2010.

The Toronto market saw year-over-year price increases across the housing types surveyed in the fourth quarter. Of particular interest is the increase in sales of higher priced units, which were hit hard by the recession over the previous 12 months. There was a surge of first-time buyers active in the market last year, depleting the inventory of entry-level units. They are expected to be joined by move-up, executive, and luxury buyers in the coming year, resulting in additional price appreciation.

Winnipeg saw some of Canada's largest home price increases this quarter. More than one third of homes sold in the region went for above their asking price driven largely by first time buyer activity. This strong growth is expected to continue well into 2010.

Inventory levels in Regina are low, as much as thirty per cent lower than expected for this time of year; this situation should be corrected in the spring of 2010. House prices should continue to increase into 2010, driven by labour force growth in the construction industry.

Price levels in Calgary remain constant as the market is correcting from the record growth seen in the middle of the previous decade. Inventory levels are one quarter the levels seen in 2008, and the reduction in choice has delayed purchases. Activity and price levels are expected to increase modestly in 2010.

House price levels in Edmonton are also still correcting from the 2005 to 2007 boom. Low inventory levels have provided some price support, and activity is expected to increase in the spring of 2010.

Vancouver saw significant gains in price levels, with average increases of approximately ten per cent across the housing types surveyed. Inventory levels are beginning to decrease, and there has been an increase in sales involving multiple offers. Sales activity may drop off due to the city's focus on the Olympics in the first quarter, but the market is expected to be robust for the remainder of the year.

  

The Highest Offer May Not Be the Best

The Highest Offer May Not Be the Best 
Sellers who get more than one offer should be aware that the highest offer isn't necessarily the best offer, say experienced practitioners. 

In this tough market, going with the buyer who has enough cash to pay a large down payment and who won't be scared away if the inspection uncovers some needed repairs is often the wise choice.

Practitioners should encourage sellers to review all the terms and conditions of the sales contract. In some areas, the allocation of fees can take a big bite out of the net proceeds. While most contracts are written to reflect that, it isn't always the case.

Also, the closing date in the offer should be considered carefully. A buyer who can close quickly can save a seller thousands. Offers contingent on the sale of another property are particularly suspect in this market.

Source: Inman News, Dian Hymer (12/28/2009)

             

Listing MLS Search

CREA News