TheStar GTA November New Home Sales Up

Click Here to Read the Storey: TheStar GTA November New Home Sales Up

Canadian homes more affordable in Q3: RBC report

TORONTO (Reuters) - Housing in Canada became easier to afford in the third quarter, the first drop in costs in more than a year, helped by lower mortgage rates and some softening in home prices, according to a study by Royal Bank of Canada.

After four consecutive quarters of rising home-ownership costs, the report by Canada's biggest bank found that affordability measures eased at the national level by 2.4 percentage points for a detached bungalow and 1.4 percentage points for a standard condominium.

Standard two-storey homes posted the greatest decrease, down 2.5 percentage points, according to the quarterly Housing Trends and Affordability index report released by RBC Economics.

The index measures the proportion of pretax household income needed to service the cost of owning a home. The lower the measure, the less costly it is.

Although home prices declined during the quarter, they were still 5.8 to 6.8 percent higher nationally than in the year-before quarter. Recent data has suggested a soft landing for Canada's once red-hot housing sector and that stable conditions are emerging.

A drop in fixed mortgage rates in the third quarter also helped to lower costs. Five-year posted rates fell more than 0.5 percentage points to an average of 5.52 percent, the report said.

But rates will rise again next year if, as expected, the Bank of Canada resumes raising interest rates. This might pressure affordability levels, although a more robust Canadian job market may soften the impact.

"Higher mortgage rates will be the dominant factor raising homeownership costs beyond the short term, although increasing household income ... will provide some positive offset," said Robert Hogue, a senior economist at Royal Bank.

"We expect housing demand and supply to remain mostly in balance overall, setting the course for very modest home price increases."

All provinces saw improvements in affordability in the third quarter.

(Reporting by Ka Yan Ng; editing by Peter Galloway)

http://ca.reuters.com/article/businessNews/idCATRE6AS39E20101129

CREA revises real estate forecasts for 2010 and 2011

In a news release issued on November 5, 2010, the Canadian Real Estate Association (CREA) revised its national sales forecast downward for both 2010 and 2011. Sales activity in the beginning of the third quarter was weak, resulting in the total number of transactions forecast for the year being lowered, even though the sales pace did pick up steam towards the end of the quarter. So what does this mean for Canadian homebuyers and sellers?

It’s important for consumers to realize that the decline in sales activity is quite a modest one. And, sales activity is being measured against one of the best years ever for Canadian real estate. It’s also very important that homebuyers and sellers understand that the modest decline in sales activity refers only to the number of transactions, and does not refer to house prices. In fact, the inventory of homes currently up for sale remains tight, due in part to a limited number of new listings coming on the market. This keeps demand strong, so the market should be seen as 'stabilizing' or 'balanced'.

Despite a slowing of the pace of real estate sales, house prices in 2010 have reached record highs in all provinces. Next year, the CREA forecast calls for some provinces to experience further price gains, even above this year's record prices. However, the higher-priced, relatively more populous provinces of BC, Alberta and Ontario are expected to experience modest price adjustments next year, resulting in a national decline – but bear in mind, that modest decline will only represent 1.3% below this year's record high. In general, today’s pricing levels will tend to be sustained through the end of next year, but the days of double-digit appreciation are behind us for the near future.

Of course, this is just the ‘big picture’ of national trends. Real estate sales activity and house prices can vary dramatically between different communities or neighbourhoods, and sometimes even on the same street. For more detailed insights on your local real estate scene, contact your local Coldwell Banker real estate professional.

RRSP (Registered Retirement Savings Plan) Did You Knows?

Fall housing market to improve after summer slowdown: Re/Max

Fall housing market to improve after summer slowdown: Re/Max

Home ownership costs soar across Canada

The Canadian Press

Date: Monday Sep. 27, 2010 8:43 AM ET

TORONTO — The cost of owning a home continues to rise, according to a quarterly report on housing affordability by Canada's largest banking group.

The latest housing report by RBC Economics Research says the costs of owning a home increased the most in Ontario and British Columbia.

The higher monthly costs for owning a home were driven by increased mortgage rates and further appreciation in home prices, the report said.

The report said home ownership costs in B.C. neared the all-time highs reached in 2008.

The RBC report also says it expects a temporary easing in housing affordability because of the recent drop in mortgage rates and signs that home prices are stabilizing in many markets.

Click here to read the Report

GTA REALTORS® Report Mid-Month Resale Housing Figures

TORONTO, September 16, 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 percent 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.

Bank of Canada hikes interest rates to 1%

Bank of Canada hikes interest rates to 1%

Looking Through the Buyers Eye's

Below are questions to ask yourself when preparing your home for sale, to ensure it looks the best it possibly can to the buyer's eyes.

Exterior

•Does your yard look well maintained?

•Are the trees and bushes trimmed?

•Is your lawn mowed and edged?

•Is your lawn free of weeds?

•Are the decks and patios clean?

•Does your house need painting?

•Are there any exterior holes or cracks?

•Are your walks and porches clean and in good repair?

•Does your roof leak or sag?

•Are any shingles or tiles missing?

•Is your chimney in good shape?



Carpeting/Walls/Ceilings

•Are your carpets clean and in good condition?

•Do your carpets need stretching?

•Are there any pet or smoking odors?

•Do your walls have any cracks or holes?

•Do your walls need painting?

•What about that wallpaper?

•Do your ceilings have any water stains, cracks or peeling?

•Do your ceilings need painting?



Kitchen

•Are your appliances clean and in good working order?

•Are your cabinets in good condition?

•Are your countertops in good condition?

•Is your tile grout clean?

•Is your sink stained, chipped, or in need or re-calking?



Bathroom

•Do your faucets shut off completely?

•Do your sinks drain freely?

•Are your toilets in good condition?

•Are your shower doors shiny?

•Do your tubs need caulking?

•Is your floor in good condition?

•Are your vanities and mirrors in good condition?



Living Room

•Is your fireplace clean?

•Is the fireplace screen in good shape?

•Are all drapes, shutters and shades clean and working properly?

•Are any window screens bent?

•Do all the windows open and close easily?

•Are the windowsills clean?

•Are your doors in good condition?

•Do any doors sag or stick?

•Do the locks work?

•Is the paint in good condition?

•Do the doors seal tightly?



Basement/Attic

•Is your basement/attic organized?

•Are they well lit?

•Are they clean?

•Are the stairs in good repair?

•Do the doors open and close easily?

•Are there any signs of insects or rodents?



Garage


•Is your garage organized?

•Is it well lit?

•Is the floor swept?

•Are there oil spots or other stains on the concrete?

We have a Wide Variety of Housing Options in the GTA

July 30, 2010 -- As residents of Canada's largest city we are fortunate to have a wide variety of housing options available to us. Regardless of whether life on a farm or the waterfront appeals to you, the Greater Toronto Area has something to offer for everyone.

As multi-faceted as the region itself, The Toronto Real Estate Board's 30,000 REALTORS® have unique assets ideally suited to helping you find your next home.

You're likely to find for example, condominium apartment or commercial property specialists working in downtown Toronto's C01 district. In this area REALTORS® can advise you on the specific amenities available in downtown condominium communities, what you can expect to pay in maintenance fees and whether parking spaces can be leased.

By contrast, a REALTOR® who practices in the northern most reaches of the GTA, in areas like Cookstown, can advise you on the details of septic systems and well water on rural properties.

The area between Toronto and rural Cookstown is incredibly vast and accordingly, the REALTORS® throughout the north 905 districts can offer advice on everything from buying a condominium apartment in Markham to a horse farm in King. From enclaves located in wooded settings to homes overlooking golf courses, your REALTOR® can guide you through the north 905 districts' many beautiful options.

The GTA is known internationally for its diversity of cultures, employment options and housing types and Mississauga, a city within our city, really epitomizes these features. Here you'll find REALTORS® with experience in everything from 905 condominium living near Square One to executive waterfront properties in Oakville/Burlington to lovely starter homes near the escarpment in Milton.

In the 905 Region's east districts you will also find many beautiful areas like Pickering's Frenchman's Bay, homes in Whitby that are within minutes of ski slopes and a community built around a marina in Newcastle. Many wonderful options are available in the communities and rural properties east of Toronto and you can count on a REALTOR® to advise you on the many specifics, from zoning allowances to school ratings to varying municipal property tax rates.

Your REALTOR® can also advise you on new home construction developments, which are plentiful in all three of the regions that comprise the picturesque 905 districts, where rolling hills are dotted with small lakes.

No matter what type of lifestyle appeals to you, you can count on your Greater Toronto REALTOR® to identify your many options and counsel you on with regard to all of the considerations when helping you find your next perfect home.

For more information on the many available options visit www.TorontoRealEstateBoard.com where you'll find GTA listings, plain language real estate forms, mortgage and land transfer tax calculators and more.

Follow TREB on www.twitter.com/TREB_Official, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel or visit www.TorontoRealEstateBoard.com

Bill Johnston is President of the Toronto Real Estate Board, a professional association that represents 30,000 REALTORS® in the Greater Toronto Area.

Sorry I Haven't Posted in a while

In case you have been following my blog.... (Crikets)... I apologize for not having many recent posts. I just bought a house with my lady and It's been a busy 2 months.
I promise to be more on top of this providing valuable info to anyone thinking about Real Estate.
your Truely!
Darcy

The Newmarket Community Centre is coming Down!

Here are some photos of the demolishion of the Newmarket Community Centre from today.

Dryer Lint Fire!

This is what can happen in your Laundry Room! Make sure you keep your Dryer Exhaust free from Lint and keep the run to the exterior short.

Stay Safe!

House prices overvalued by 14 per cent in Canada: CIBC - Yourhome.ca

House prices overvalued by 14 per cent in Canada: CIBC - Yourhome.ca
Click on the link above to read the Article in today's Toronto Star.

April's Transactions nearly met the Record!

May 14, 2010 -- In April, 10,898 homes changed hands in the Greater Toronto Area, marking two consecutive months in which activity has exceeded 10,000 transactions. While not unprecedented, this pattern has only occurred once before: in May and June of 2007, which finished as the strongest year on record.

Last month’s figure surpassed April 2009’s 8,107 sales, which took place as we were emerging from a short-lived recession. Most significantly, it outpaced April 2008’s 8,762 transactions and even the 9,452 sales that took place in April 2007.

Taking a closer look at last month’s numbers, there were 4,310 sales in the 416 Area and 6,588 transactions in the 905 Region.

The 3,349 condominium purchases that took place comprised nearly 31 per cent of all sales last month. By contrast, at this time a year ago condominiums comprised 28 per cent of transactions. This demonstrates Torontonians’ growing enthusiasm for condominium living.

With respect to prices, the results are also very strong. Currently, the average price of a home in the GTA is $437,600, which represents a nearly 12 per cent increase over the April 2009 average price of $385,641. Growth was nearly equal in both of the regions last month. In the 416 Area, the average price of $479,340 rose nearly 14 per cent from $421,470 a year ago. In the 905 Region, the average price of $410,293 grew more than 13 per cent from April 2009’s average price of $362,009.

Due in part to the extra costs associated with the Harmonized Sales Tax, which takes effect July 1, and anticipated interest rate hikes, activity is brisk. Currently homes are on the market for an average of 21 days before being sold compared to an average of 37 days on market a year ago. As well, there are currently 22,951 homes available for sale throughout the GTA as compared to 23,515 a year ago.

We can expect more properties to become available for sale as we move toward the second half of the year though, as homeowners react favourably to recent months’ activity. This should result in more balanced conditions.

While there’s no question that sales have been robust throughout the past 12 months, the market is functioning as expected. In fact, the flurry of activity during the past two months bodes well for the future of real estate in the GTA, as each new homeowner brings fresh enthusiasm to their new space, undertaking home improvements and thereby contributing to property values in the city as a whole.

Regardless of market conditions, provided you enlist the skills of an astute REALTOR® it can be a favourable time to undertake a transaction at any juncture. To find out more about activity in your specific neighbourhood, talk to a Greater Toronto REALTOR®. They can advise you on recent sales in the area so that you can make informed decisions when planning your next move.

Be sure to visit www.TorontoRealEstateBoard.com as well, where you will find GTA listings, plain language explanations of common real estate forms, information on government programs and more.

Follow TREB on www.Twitter.com/TREB_Official, www.facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel .


Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 29,000 REALTORS® in the Greater Toronto Area.

The Hidden Costs of Moving

May 7, 2010 -- In the last five years an average of more than 80,000 homes per year have changed hands in the Greater Toronto Area. While our reasons for changing the scenery are as diverse as the city itself, there’s no doubt that a different space or lifestyle can offer new inspiration and more importantly, an opportunity for a fresh start financially.

The key to ensuring that you begin your next chapter with a solid financial footing is careful budgeting of all costs associated with the transaction.

While many homebuyers plan for the most apparent expenses such as the deposit and down payment, mortgage insurance costs, appraisal and inspection fees, land transfer taxes and legal costs; there are a number of less obvious expenses that should also be taken into account.

Transporting your belongings is one such expense. Professional moving costs can range from hundreds to thousands of dollars so it’s best to be sure you’re comfortable with the company you’ve chosen by seeking referrals from family and friends. Even if you only plan to rent a truck, be sure that you fully understand the agreement and account for extra gas and mileage costs. Include packing supplies like tape and bubble wrap in your budget as well.

When it comes to moving, it’s wise to expect the unexpected. Since delays can happen at either end, budgeting funds for accommodations, storage facilities and additional rental fees is a must. Given that settling in doesn’t happen overnight, you should also expect the additional costs of eating take-out food for a few days. Anticipate a higher than normal grocery bill at the outset as well, as you restock staples that may have been discarded prior to your move and replenish much-needed cleaning supplies.

To make your new house a home you’ll want to set aside some funds for furniture, window treatments, light fixtures and area rugs. Even minor assorted hardware items can add up. Utility, phone, television and Internet service providers typically charge to establish a connection. As well, to provide for better security, plan to have your locks re-keyed or replace the entire lockset yourself.

As a condition of your mortgage you will need to obtain home insurance. Since premiums can vary widely, be sure to get a number of quotes. Remember as well, that if the seller has prepaid utility bills and taxes beyond closing, you will be required to reimburse them. If you’re moving into a larger space, higher ongoing utility costs should also be considered. Account for the fact that property taxes could also increase significantly if you’re a move-up buyer.

While the preparation might seem a little daunting, the benefits of your new investment far outweigh the inconveniences of moving. A home after all, is not only the sole type of investment in which you can live while it appreciates; it’s also a place to build memories that last a lifetime.

To ensure you’re well prepared for your next move talk to a Greater Toronto REALTOR® and visit www.TorontoRealEstateBoard.com where you’ll find available properties, neighbourhood profiles and the latest market statistics. Be sure to follow TREB on www.Twitter.com/TREB_Official, www.facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel .

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 29,000 REALTORS® in the Greater Toronto Area.

Toronto Real Estate Board April Stats

TORONTO, May 5, 2010 - 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.”

Money Sense Magazine Ranks Newmarket as 15th Best place to live in Canada

Money Sense Magazine ranks Newmarket as the 15th Best Place to live in Canada.

Click here to read to complete article.

Whats Taxable under the HST and What is not

Curious to know what might be a little more expensive come July 1, 2010???
Look no further. Click Here to view a list of items compiled to help Ontarians get a better handle on our new tax...

End of an Era - Old Community Centre Arena is coming down

As part of a larger vision to transform downtown Newmarket, the Community Centre (200 Doug Duncan Drive) is scheduled to undergo significant renovations, starting with the dismantling of the arena within the next few weeks. Residents and business owners will now notice perimeter fencing surrounding the arena and south parking lot as the contractors prepare for the demolition.

“The Community Centre arena has stood the test of time and has been a pillar of our recreation community since the 1920s. The dismantling of the arena is bittersweet as it represents the end of an era, but also marks the beginning of an exciting transformation for Newmarket,” say Mayor Tony Van Bynen.

The removal of the arena is an important component of the Town’s Community Urban Space Project (CUSP) that will see the creation of an 8.4 acre urban park in the heart of downtown. Touted as an all season destination, the new park will include an open-air skating facility that converts into a summer water feature, and an outdoor performance area. The park is scheduled to open by March 31, 2011.

“As we say goodbye to the old arena, we are creating a new family space in its place,” says Regional Councillor John Taylor. “We’re excited that the new urban park will further promote downtown as a centre for the community and a key destination for cultural and recreational events,” continues Taylor.

The Community Centre itself will undergo a variety of renovations, and the Town will host a public drop-in session to allow members of the community to view the interior and exterior plans for the centre (date to be determined).

Residents should be advised that traffic flow along Doug Duncan Drive may be affected as the arena is dismantled. In addition, contractors in hazardous materials suits may be observed as asbestos tile is removed from the facility, and heavy machinery will be onsite.

The Town will continue to update the media as new information is available. A photo opportunity will also be scheduled once the demolition date is determined. To learn more about the Town’s downtown initiatives, visit http://www.newmarket.ca/en/discoverdowntown.asp, or, sign up for the Town’s new electronic newsletter – the Downtown Dish – by e-mailing downtowndish@newmarket.ca for the Town’s new electronic newsletter – the Downtown Dish

Mid-April Resale Market Figures

TORONTO, April 16, 2010 – Greater Toronto REALTORS® reported 4,601 sales throughthe 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 Manager 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.”

VIVA/NEXT Rapidways

For those curius to know what the Viva Rapidway is scheduled to look like, have a look at this video that viva has posted on youtube. The first 40 seconds are basically what Main/Davis is expected to look like, while other Transit oreinted projects follow.


*PLEASE KEEP IN MIND THIS VIDEO IS A DEMONSTRATION OF WHAT THE DEVELOPMENT MIGHT LOOK LIKE. Main/Davis is not likely going to see major development like the one proposed in the video for many many years to come.


The goal is to build transit systems and roadways that will accomodate for vertical development and the concentration of population growth in designated Growth Centres. This is all based on the The Ontario Places to Grow Act which is intended manage growth and development in a way that supports economic prosperity, protects the environment and helps communities achieve a high quality of life across the province.
Newmarket is a targeted area in the Act and has been given a Provincial Growth mandate to acheive a population of 98,000 by 2026, a goal I think will be achieved well before that date.

For More Info on Viva , click Here
For more on The Place to Grow act the the communities affected, click here

As this graph shows, March was the best month for sales volume in 4 years.

The supply levels are significantly higher now than in the spring, which is causing the market to balance out a bit more than we witnessed in the winter months. If supply outweighs demand, prices drop.

The sales-listings ratio is actually down from february, which isn't that uncommon, but a big contrast to what happened the same time last year.

Becuase of the large unbalance of demand outweighing demand over the winter months, average prices skyrocketed over those of the past 4 years.

YOu can see the large disparity of available homes for sale over the course of 2009 from the above graph which I believe helped fuel the demand as the signs of economic recovery appeared.

Transit Future Woes - Budget Cut backs could put Road Widening on Hold.

If you were hoping to trade in your car for the region’s new rapid transit service in the next few years, you may want to hold on to your keys.

The budget unveiled by Ontario Finance Minister Dwight Duncan Thursday asks Metrolinx to delay $4 billion in transit spending during the next five years, meaning Viva’s bus lanes, including an extensive project on Newmarket’s Davis Drive, likely won’t open as soon as hoped.

Viva didn’t know about the funding delays until the budget announcement, but will soon meet with the province and Metrolinx, spokesperson Dale Albers said. The province and York Region will work together to deliver programs in a reasonable time frame, he said.

Mr. Albers emphasized the province’s prior commitments to transit and that no projects are cancelled. But with shovels nearly ready to go in the ground in Newmarket, Markham and Richmond Hill, the future is suddenly uncertain.

“It does’t seem sensible to halt the project this far along,” said Newmarket Regional Councillor John Taylor, who began making enquries as soon as he heard about the delay.

Engineering work for Davis Drive’s rapidways is complete and expropriations have proceeded to the point some buildings along the strip are boarded up.

Mr. Taylor said he was very concerned, but spoke with regional chairperson Bill Fisch Friday and is confident Mr. Ficsh and staff, who brought Viva so far already, will ensure things don’t grind to a halt.

“I’m hoping we’ll have a positive outcome. I wouldn’t want to see Davis Drive caught in limbo,” Mr. Taylor said.

The bus line would help free up congestion choking Davis for decades, Newmarket Mayor Tony Van Bynen said, adding Southlake hospital’s new cancer centre will bring even more vehicles to town.

Expropriations are also underway along Hwy. 7 East, so construction can begin this fall. Those lanes were set to open in 2013. Further phases, extending north along Yonge Street to Richmond Hill and through Newmarket and west along Hwy. 7 to Vaughan, were set for 2014 to 2015 openings.

Even further down the road were other Viva segments and plans to extend TTC’s light rail transit on Don Mills road and Jane Street into York Region.

It was almost exactly a year ago Premier Dalton McGuinty came to York celebrating $1.4 billion for Viva, fully funding the construction of the median lanes that allow buses to operate out of mixed traffic.

The premier was following through on the promise of the $11.5 billion Move Ontario 2020 plan unveiled during the 2007 election campaign. He hoped the federal government would step up with money, but that never happened and the original funds for transit projects across the GTA are almost entirely dispersed.

Now, the government is trying to hold off spending the more than one-third of funding already spoken for.

While Viva’s future is up in the air, things are surely more bleak for the unfunded Yonge subway extension, despite strong regional lobbying for the needed $3 billion.
It’s “basically dead”, Thornhill Conservative MPP Peter Shurman said of Move Ontario, but he and other local politicians formed a working group with residents to lobby for the subway and they are kicking around alternate funding ideas.

“Gridlock costs a fortune” in terms of money and quality of life for York residents, Mr. Shurman said.

Vaughan’s Spadina subway is unaffected but Toronto’s plans to construct LRT along Finch Avenue and Eglinton Avenue are also pushed back.

“It makes absolutely no economic sense, it makes no sense from a social policy perspective,” Toronto Mayor David Miller told reporters, describing the decision as “disgraceful” and “thick”.

Both Mr. Miller and the Toronto Board of Trade slammed the move as shortsighted given its job-creation potential.

“This is not a good day for regional transit,” board president and chief executive officer Carol Wilding said.

“Our infrastructure deficit has become the casualty of a fiscal deficit with shorter-term priorities sacrificing the fundamentals of long-term economic growth.”
The transit delays were one of several belt-tightening measures announced by Mr. Duncan, including a freeze on provincial salaries.

“Public servants make a valuable contribution to the health and well-being of this province. They are an important part of our well-educated workforce. That is why we will not propose mandatory days off. That is why we will honour existing collective agreements.”

About 700,000 unionized employees will not see a freeze, at least until their contracts come due. That means it’s business as usual for the unions while other Ontarians are busy making ends meet, Mr. Shurman said.

Mr. Duncan also touted previously announced programs, such as plans to spend $63.5 million on daycare, the introduction of full-day kindergarten in September and the shift to the HST in June.

The harmonized tax is expected bring $1.2 billion to the provincial treasury next year.

Storey from:

http://www.yorkregion.com/news/local/article/657189--transit-future-woes

For more information on the VIVANEXT Project and how it's planned to effect Davis Drive, click here

Hot Topic: Lots of Listings

President's Message:

March 16, 2010 -- The Toronto Real Estate Board (TREB) reported a strong result for existing home sales and average selling price in February. Last month, 7,291 transactions were reported through the Multiple Listing Service® (MLS®) within the TREB market area, representing a 77 per cent increase over the same month last year. The average price for these transactions was $431,509 – up 19 per cent compared to February 2009. The annual rates of growth reported for sales and average price were due to both increased demand for ownership housing driven by strengthening consumer confidence and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year. While strong growth in existing home sales and average price was forecast to be strong in the first half of 2010, the big story last month was listings. New listings increased by almost 25 per cent compared to February 2009. After adjusting for the season and annualizing this figure, we found that new listings climbed back to levels not seen since the fall of 2008.

“Existing home owners have started to react positively to the strengthening market conditions we have seen since the half-way point of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “An increasing number of home owners have become confident that they will be able to list their home and receive offers in line with their asking price within a reasonable time period.”

In my experience, it has always been important to strike a balance between sales and listings in the market place. When the number of buyers increases rapidly relative to the supply of listings, like we saw in the second half of 2009, it becomes more difficult for would-be home buyers to find a home that meets their needs. These tight market conditions have resulted in strong year-over-year price increases. As the supply of listings increases moving forward, the annual rate of price growth will edge lower.

“It is important that home prices grow at a sustainable pace in the long run. The rate of price growth will often fluctuate quite a bit over a short period of time. The past twelve months has been a good example, with price declines this time last year improving to the current situation of double-digit rates of growth,” explained Mercer. “Over the long term we want to see home prices growing in line with broader economic indicators like GDP and disposable income. With more listings coming on stream this year, we will see sustainable rates of price growth.”

It is clear to me that the housing market in Toronto is performing as it should. Demand for ownership housing improved as interest rates declined and consumer confidence in economic recovery rebounded. Average home price growth picked up as market conditions tightened. In response to increased sales and average price, we are seeing an increasing number of new listings, which will result in more balanced market conditions associated with sustainable long-term price growth. I look forward to discussing GTA housing market trends in further detail with you next month.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 29,000 REALTORS® in the Greater Toronto Area.

HST and how is will effect the Real Etstae Market

HST Transition Rules

The provincial government has provided rules/guidance on how it will transition to the implementation of the proposed Harmonized Sales Tax.

Background

The provincial government has passed legislation to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).

- The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1, 2010; however, note transition rules below.
- HST will not apply on the purchase price of re-sale homes.
- HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
- HST will apply 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 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

Transitional Rules for New Housing

Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

Additional Transitional Rules

Where services straddle the HST implementation date of July 1, 2010, the tax charged for the service may have to be split between the pre-July 2010 and post-June 2010 periods. However, the HST will generally not apply to a service if all or substantially all (90% or more) of the service is performed before July 2010.
Four key timelines are important (see below). All are based on the earlier of the time the consideration is either due (In general, an amount is due on the date of the invoice or the day required to be paid pursuant to a written agreement), or is paid without having become due. If consideration is due or paid,
Before October 15, 2009, HST will generally not apply (however, see above transition rules for new housing).
From October 15, 2009 to April 30, 2010, certain business that are not entitled to recover all of their GST/HST paid as input tax credit may be required to self-assess the provincial component of the HST with respect to goods or services supplied after June 30, 2010.
From May 1, 2010 to June 30, 2010, HST will generally apply for services supplied after June 30, 2010.
After June 30, 2010, HST will generally apply. An exception to this rule would be where ownership of the property is transferred before July 2010 or the invoice relates to services provided before July 2010.
With regard to the lease or license of goods, including non-residential real property, HST will generally apply to lease intervals or payment periods on or after July 1, 2010 and the general rules noted above will apply. However, where a lease interval begins before July 2010 and ends before July 31, 2010, it is not subject to HST.
With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.


More Detail

Additional detail on the transition rules is available at the provincial government web site here or by calling the provincial government enquiry line at 1-800-337-7222.

Careful renos can increase home value

President's Message:

The Greater Toronto Area’s spring real estate market is just weeks away and many analysts anticipate that it will be a busy one.

It is expected that the number of properties available for sale will increase as homeowners react favourably to recent months’ activity. It’s also likely that the market will have more homebuyers, prompted to make a purchase before the added costs of the Harmonized Sales Tax take effect on July 1st.

If you’re planning on making a foray into the market this year, now could be the time to undertake improvements, which if carefully planned, can increase the value of your home considerably.

Most of us know that kitchens, bathrooms and a fresh coat of paint inside and out, offer the best return on investment. According to the Appraisal Institute of Canada, you can expect to get back 75 to 100 per cent of what you put into kitchens and bathrooms. Painting can return 50 to 100 per cent of your investment.

While these are typically low risk investments, a number of factors can influence the gains you achieve with other types of renovations. Location is one such consideration. The completion of a basement recreation room for example, can generally return 50 to 75 per cent of expenses, depending on the preferences of future buyers in your area. In a predominantly seniors community its value could be considerably limited.

It’s also important to consider your home’s most crucial needs. Window and door replacement may offer a return of 50 to 75 per cent, but if your existing units are broken, this home improvement should take priority on your project list. Where glaring needs are concerned, the value associated with your home’s overall impression outweighs specific project returns.

When deciding whether to proceed with functional renovations though, it’s also important to consider that significant government rebates are available for many energy efficiency improvements.

There are some improvements that we undertake simply for our own enjoyment, like a swimming pool, from which you can get back up to 40 per cent of your investment or landscaping, which is likely to offer a 25 to 50 per cent return. Despite the limited gains they may offer individually, these types of improvements can also make an important contribution to your property’s overall image.

Consider as well that not all of your renovations need to be sizable. Even minor improvements like new light fixtures, cabinet hardware or faucets can give your home a contemporary look.

For more information visit the Toronto Real Estate Board’s consumer website www.TorontoRealEstateBoard.com to find a REALTOR® who can advise you on wise improvements for your home.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 29,000 REALTORS® in the Greater Toronto Area.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.

For more information on Estate Home Sales Solutions, Click here

February Market Graphs - GTA

Simple Steps to Energy Efficiency

February 26, 2010 -- When it comes to character, you just can’t beat the charm of an older home. Newly constructed homes however, come with their own unique assets, one of the most noteworthy of which is energy efficiency.

From the roof to the foundation, a number of innovative building practices often go into constructing today’s greenest homes.

Roof shingles for example, are now available in recycled materials. Environmentally friendly spray foam insulation, which can help prevent dampness, keep out pollutants and contribute to structural strength, is even partially made with recycled materials.

Roofs, walls and floors can be insulated as well with special structural panels that consist of two layers of board with insulating foam in between them. The forms that are used to mould a home’s poured concrete foundation can now also be found with insulating ability, and barriers that prevent dampness from rising into the foundation can be used at this stage of construction as well. Even exterior cladding is now insulated to offer greater energy efficiency.

If you prefer an older home though, there are many simple ways to make it more energy efficient and environmentally friendly.

Start with an Energy Star programmable thermostat that will save on heating and cooling costs when you’re not home. You can take this approach a step further by investing in a new high efficiency furnace or air conditioner. Adding insulation to the attic of your home will offer reduced energy costs for years to come as well.

A tank-less water heater will also save on energy costs by providing only the amount of heated water that you need rather than maintaining it in a cylinder.

Even making minor changes can have an impact, like choosing energy efficient light bulbs - Compact Fluorescent Lamps (CFLs) are good and Light Emitting Diodes (LEDs) are even better.

If you’re planning to make cosmetic changes to your home you can do your part for the environment by choosing wood flooring, and even carpet, made with recycled content. Look for low VOC paints and stains as well, which reduce the number of unstable, carbon-containing compounds that enter the air and react with other elements.

In the bathroom, you can keep more money in your pocket by installing low-flow faucets, showerheads and toilets.

Replacing old windows with low-E argon-filled units that have the Energy Star symbol can make a dramatic difference to your home’s energy efficiency as well.

Changing your old appliances with new Energy Star machines is also a great way to reduce energy consumption while enhancing the overall appeal of your home.

Beyond enjoying the aesthetics, cost savings and fulfillment associated with helping the environment, you can also consider getting an energy audit to take full advantage of a number of government rebates for energy-saving home improvements. Please visit www.TorontoRealEstateBoard.com to learn more about them.

Regardless of the approach you choose, remember that nothing can substitute for good-old fashioned conservation. Remember that the energy you save today may well be the energy that is needed tomorrow.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 29,000 REALTORS® in the Greater Toronto Area.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.

Department of Finance Mortgage Measures

The Honorable 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:

QUALIFYING AT A FIVE-YEAR RATE

Current interest rates are at record low levels, which has improved the affordability of housing for Canadians. It is important that Canadians borrow prudently and are able to manage their debt loads when interest rates rise.

Lender and mortgage insurers look at two key ratios when assessing the ability of a borrower to make payments on a mortgage loan:

Gross Debt Service (GDS) ratio—the ratio of the carrying costs of the home, including the mortgage payment, taxes and heating costs, to the borrower's income.
Total Debt Service (TDS) ratio—the ratio of the carrying costs of the home and all other debt payments to the borrower's total income.
Currently, the interest rate used to determine the mortgage payment for these calculations is either the rate fixed for the term of the mortgage or, in the case of a variable-rate mortgage and mortgages with terms of less than three years, the greater of the contract rate and the prevailing three-year fixed rate.

The adjustments to the mortgage framework will require mortgage insurers to ensure that borrowers qualify for their mortgage amount using the greater of the contract rate or the interest rate for a five-year fixed rate mortgage when calculating the GDS and TDS ratios.

This measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future.

LIMIT THE MAXIMUM REFINANCING AMOUNT TO 90 PER CENT OF THE LOAN-TO-VALUE RATIO

Borrowers seeking financial flexibility can currently refinance their mortgage and increase the amount they are borrowing on the security of their home up to a limit of 95 per cent of the value of the property. This type of refinancing lowers the borrower's equity in their home. The adjustments today will lower the maximum amount of the mortgage loan in a refinancing of a government-backed high ratio mortgage loan to 90 per cent of the value of the property, consistent with the principle that home ownership is a tool for savings.

DISCOURAGING SPECULATION BY REQUIRING A MINIMUM DOWN PAYMENT OF 20 PER CENT FOR NON-OWNER-OCCUPIED PROPERTIES

This measure will require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. Currently, borrowers may purchase a residential property with a 5 per cent down payment. Today's change will require a 20 per cent down payment for small (i.e., 1- to 4-unit) non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (e.g., borrowers purchasing a duplex to live in one unit and rent out the other) will still be able to access government-backed mortgage insurance with a 5 per cent down payment.

Moving to the new framework:

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010. Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010.

"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." The Honorable Jim Flaherty, Minister of Finance

My Take:

Qualifying at a Five Year rate: this is good for the stability of our Real Estate Market, but will discourage rapid growth in prices as those looking to enter into the market will find it a little more difficult to qualify. Those who can afford to buy will be the ones buying.

Refinancing Limit of 90% Loan-to-Value(LTV): I also see this as positive. In the past few years I have seen a number of people refinance to the point that they then owed more than their home is worth. Thus, in most cases, leading to forclosure by the lender. It is important for people to have equity in their home and by lowering the refinancing limit from 95% LTV to 90% LTV it will protect a lot of people from being forclosed on and maintaining equity on thier home.

20% minimum down payment for non-owner occuppied: I'm a little torn with this one as I have a goal of owning many rental investment properties, so this make it a little harder to grow a large portfolio since I will be required to have more money into the property. I see this really as a way for the government to protect their insurance premiums they recieve from CMHC. With more money down by speculators, and investors, it lessens the probabblility of the lenders who are financing these types of deals from having to make insurance claims when there is a deficit from what is owed and what a property is worth... I can see this part changing down the road to say 15% down required.

Daniel Craig comes to Newmarket

On Monday Feb 15 and Tuesday Feb 16, Daniel Craig is coming to town to film a few scenes from his upcoming film.

Dream House, also featuring Naomi Watts, is a thriller that follows a man, portrayed by Mr. Craig, who moves his family to a small town only to discover the house he purchased is haunted by the former owners, who were murdered there.
He will be in town to shoot a scene with Newmarket's own Real Estate Agent, Rav Toor (Homelife Main Street). A scene that will be shot on Feb. 16 will use the local real estate Brokerage office as back drop when Mr. Craig's character accuses the real estate agents of selling the house with the knowledge it being haunted...

Rumour has it that Niaomi Watts will not be in town for the shoot... too bad, but understandably, Main Street is in a BUZZ over the coming Movie Star.

Expect strong start to 2010 to continue

February 12, 2010 -- More than 4,986 homes changed hands throughout the Greater Toronto Area in January, far exceeding last January’s recessionary low of 2,670transactions. Most significantly, last month’s figure is comparable to sales in January 2008 and 2007, the latter of which finished as the strongest year on record. As we approach the traditionally busy spring season, we can anticipate an increase in activity. There are a number of reasons why spring usually shapes up to be an active period of the year for the resale housing market. Families often coordinate their moves with the school calendar, purchasing in spring to provide for a late summer closing. Others are simply motivated by every spring’s promise of a fresh start. Many buyers are also prompted to begin their search when the snow has melted, making streets and properties more accessible. Sellers meanwhile, choose this time of year as it affords the opportunity to extend household fix-ups to the outdoors, contributing to improved curb appeal and salability.

There are currently 12,052 properties available in the GTA through the Multiple Listing Service and this figure is expected to climb in the coming months as homeowners react to the recent months’ market strength. More competition means that house prices will likely stabilize however; increased activity will also necessitate quick decision-making.

By contrast, typically the summer months afford many of the same benefits as the spring market, without the fast pace. Last summer’s activity though, was markedly stronger than previous years, reflecting both pent up demand from the recessionary months prior and an emerging all-season attitude toward real estate in our city.

During the fall months another spike in activity is usually seen. Typically, the fall market reaches a crescendo in October, when between 6,000 and 8,000 homes change hands, in comparison to more than 9,000 transactions that often take place at the height of the spring season in May.

Throughout the winter months, we generally see more moderate activity. This can benefit buyers, who have the opportunity to achieve an attractive purchase price from motivated sellers. There are however, also advantages for sellers. Buyers who are searching for a home at this time of the year tend to be serious about making a purchase and as such, ineffectual showings are not the norm. Houses often look their holiday best throughout the winter months as well, which can yield favourable turns.

Often changes in our personal lives dictate the time of year when we enter the real estate market and when this is the case, you can count on a Greater Toronto REALTOR® to counsel you on achieving the most favourable outcome in your transaction.

For more information on working with a REALTOR® please visit www.TorontoRealEstateBoard.com
For more information the Government of Canada’s pledge to match donations to relief efforts until February 12th please visit www.acdi-cida.gc.ca

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.

Houseing Market Charts - January 2010