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.