TREB President's message - New mortgage rules have affected home sales

December 14, 2012
A moderate number of resale home transactions took place throughout the Greater Toronto Area (GTA) in November, with 5,793 homes changing hands. This represented a 16 per cent decrease from 6,908 sales in November 2011.
In Toronto 2,308 transactions took place last month compared to 2,952 sales a year ago - a decline of nearly 28 per cent. Meanwhile 3,485 homes changed hands in the 905 Regions, a decrease of more than 13 per cent from 3,956 sales in November 2011.
A key factor that has influenced the dip in sales experienced in recent months relates to the changes in mortgage lending guidelines that came into effect in July. The changes reduced the maximum amortization period from 30 years to 25 years and set a purchase price ceiling for government backed insured mortgages at one million dollars. These regulations have resulted in some households putting their decision to purchase on hold while they save up more money for a down payment and/or experience an increase in their income. Adding to this situation in the City of Toronto is the additional upfront Land Transfer Tax, which takes money from home buyers that could otherwise be used to offset the high costs of home ownership.
While sales decreased year-over-year in November, a modest overall price increase was reported, with the average price of a GTA home reaching $485,328. This represented an increase of 1.6 per cent compared to a year ago.
The 905 Region, with an average price of $463,779, showed a price increase of four per cent compared to a half-percent decrease in the City of Toronto average home price, which was $517,866.
The pace of average price growth in November was slower than what was experienced for much of 2012, especially in the low-rise segment of the market. This was largely due to the fact that the mix of single detached homes sold in the City of Toronto this past November changed relative to last year. Specifically, the share of homes that sold for over one million dollars was down considerably.
While the mix of home types sold may have changed, market conditions remained tight for low-rise home types. This is evident when we consider the MLS® Home Price Index (HPI) for the GTA. The MLS® HPI tracks the price change for benchmark homes – in other words: a home with the same attributes over time. When we look at price through this lens, we find that the benchmark price for major home types was up by 4.6 per cent in the GTA as a whole and 3.9 per cent for the City of Toronto.
News on the employment front was positive in November, as the Toronto seasonally adjusted unemployment rate decreased to 8.2 per cent, from 8.6 per cent the previous month. Interest rates remain largely unchanged, with a five year fixed mortgage rate of just over three per cent continuing to be available.
At this time of year I am often asked whether it is prudent to list one’s home for sale over the holidays, and there are in fact, many benefits to doing so. Consider that those viewing homes at this time of year are more likely to be serious buyers. As well, homes often look their best when they are decorated for the holidays, and a favourable emotional response to a property often prompts an offer.
I encourage you to talk to a Greater Toronto REALTOR® about the many other factors you should consider before choosing to make your next move and in the meantime, be sure to visit www.TorontoRealEstateBoard.com for all of the latest updates on the market.
Ann Hannah is President of the Toronto Real Estate Board, a professional association that represents 35,000 REALTORS® in the Greater Toronto Area.

Article can be read here: http://communications3.torontomls.net/media_centre/star_column/index.htm

Should I sell my home During the Holidays?

Here is a great article for those thinking about putting their property on the market during the holiday season!
Enjoy!

http://online.wsj.com/article/SB10001424127887324640104578165580618753110.html

10 Tips for Halloween Safety! - From The Fire Guy

Courtesy Canadian Red Cross                            The day that paranormal creatures invade city streets is near.
As your little ones prepare their costumes to trick or treat their way through the night, the Canadian Red Cross has prepared a quick list of 10 tips to make sure everyone gets home safely. You may not need to fear vampires and ghosts knocking on your door, but fire hazards, scrapes and getting lost are potential concerns.

1.     Give your kids a map of their trick or treat route so they can find their way home. Mark the homes of nearby friends and relatives in case they need assistance on their journey. Younger children should be chaperoned by an adult.

2.     Instruct children to walk on the sidewalk not the street - even princesses and fairies have to watch out for motorists!

3.     Prepare for the dark with lighter coloured clothing and reflective surfaces. What better way to decorate a sword or a cape than with magical glowing tape?

4.     Avoid any type of flame by substituting candles with glow sticks. Wigs and costumes are highly flammable and glow sticks are perfect for illuminating Jack-o-lanterns.

5.     Remind your kids to stick with groups of at least four or five - after all, even legendary heroes are stronger as a team (like the Avengers and X-Men!)

6.     Tell them to only visit residences with a porch light on and not to enter a stranger’s home - politely accept candy and promptly leave.

7.     Costumes are meant to embellish - not to hide. Keep hems short to avoid tripping and don’t let masks block the eyes.

8.     Whether you have one eye, two eyes, three eyes or four, always look both ways before crossing the street.

9.     Both mystical creatures and children need to let parents check their candy before eating to remove any potential hazards.

10.   A flashlight is akin to a protective light saber of sorts and makes night-time travelling safer (it also helps you spot a ghost or goblin trying to plan a surprise attack!)

Following these tips on October 31 will help ensure your family has a fun and safe night of trick or treating!

For all your Retrofit needs remember The Fire Guy
 "Who is here protecting you from Fire and Fire Departments"

Mortgage Pre-Approvals... Not what they used to be.

I received an interesting email today from a Mortgage Broker, Darlene Hinton. Usually I disregard the bombardment of emails I get from Mortgage Brokers, but the first line really caught my attention since I have one property which I have now sold three times because the Buyers financing on the first two deals fell apart before the removal of the financing condition.

Mortgage Pre-approvals are not what they used to be. In times past, a client could depend on a bank's word when they gave them preapproval to start shopping. That's just not the case anymore. I see it all the time. . . clients happily shopping (and putting in an offer to purchase) confident they were golden with their bank. . . only to find there was some glitch. There are too many to list, but it could be something as inane as the address of the property the client wants to buy or an issue with the source of a client's downpayment. Maybe the clients credit rating drops between Pre-approval and Offer to Purchase. It could be anything.

Many of these issues can be avoided by using a Broker who takes the time to establish a personal relationship with their client. I try to gather every fact I can so as to avoid unneccesary stress and disappointment. But perhaps even more importantly. . . I have access to a plethora of Lenders that would be happy to step in should a Lender get cold feet.

Do you want to save both yourself and your client precious time? Call me for your homebuyers financng. . .and let's close more deals. . faster and more efficiently.    :)

Call me. I can help.

--

DARLENE HINTON
 

Mortgage Agent

Touch Residential Capital

note2darlene@gmail.com

License #M10001367

Phone: 705-331-6774

Fax: 1-866-716-7038

Weekend GoTrain Service to Newmarket/Aurora!

If you didn't know, it is now possible to catch the GoTrain to and From Toronto in Newmarket/Aurora on weekends and Holidays.
Between June 23, 2012 and September 3, 2012, GoTransit (Government of Ontario Transit) is doing a pilot GoTrain schedule along the Barrie line.
My guess is that they will continue if they see the usage, but it appears to be here just for the Summer (for now).

Here is some details on the Service:

It appears that there will be 2 trains that will do the entire route from Barrie to Toronto and run up and down all day, 6 times. However, will only run all the way to Barrie twice, stopping and turning around at the East Gwillimbury Station on Green Lane 4 of the 6 times.

This train line services: Allandale go Station (Barrie) -> Barrie South Go station -> Bradford Go Station -> East Gwillimbury (EG) Go Station -> Newmarket GoTrain Station -> Aurora Go Station -> King City Go Station -> Maple Go Station -> Rutherford Go Station -> York University Go Station -> Union Station (Toronto)

South Bound Service:

10:20am departure - Barrie (Allandale Go Station) -> Toronto (union Station) - 11:58am arrival

1:20pm departure - EG Station (Green Lane/Main St North) -> Toronto - 2:21pm arrival

4:12pm departure - EG Station -> Toronto - 5:13pm Arrival

5:00pm departure - Barrie Allandale Station -> Toronto - 6:38pm arrival

8:00pm departure - EG Station -> Toronto - 9:01pm Arrival

10:22pm departure - EG Station -> Toronto - 11:56pm arrival

Northbound Service

12:10pm departure - Toronto (Union) -> EG Station - 1:09pm arrival

3:01pm departure - Toronto -> EG Station - 4pm arrival

5:25pm departure - Toronto -> Barrie Allandale Station - 7:02pm arrival

6:50pm departure - Toronto -> EG Station - 7:49pm arrival

9:41pm departure - Toronto -> EG Station - 10:40pm arrival

12:10am departure - Toronto -> Barrie Allandale Station - 1:45am arrival

to view the complete schedule, click on the following link:
http://www.gotransit.com/publicroot/en/PDF/Timetables/CurrentBoard/Table65.pdf

Newmarket Southbound trains (GoTrain station @ Davis Drive/Superior [Tannery Mall]):

11:00am; 1:23pm; 4:15pm; 5:40pm; 8:03pm; 10:58pm

Aurora Southbound Trains (Aurora GoTrain Station on Wellington):

11:06am; 1:29pm; 4:21pm; 5:46pm; 8:09pm; 11:04pm

I'll be sure to follow how well this pilot program goes as I believe better train service to Newmarket/Aurora will be well used in the coming years.
Lets see a few more trains during the work week too!

Increasing your payment by a small amount can yield huge savings.

As you know, you're paying interest every day you have a mortgage. So the sooner you reduce the amount you owe, the less interest you pay. One relatively painless way to do this is by increasing your payment by a small amount. Then all you have to do is sit back and let time work it's magic—before you know it, you'll have chipped thousands of dollars off your mortgage! 

Let's say you have a $200,000 mortgage at 4.5% with a 30 year amortization, and you're in year 3. If you increase your monthly payment by $100—roughly the cost of one premium coffee per day—that reduces your amortization by 51 months and saves you $24,622 in interest over the life of the mortgage! Now, I'm not suggesting you give up all of life's pleasures to pay off your mortgage faster. But it's obvious that doing something small can make a BIG difference. 


Information is compliments of:
Mike Havery AMP, Mortgage Planner
http://www.themortgagearchitect.ca/

Demand for Luxury homes on the rise across Canada

Sales of luxury homes have started out at a record-setting pace for 2012, up almost 50 per cent over the first quarter of last year, according to a new ReMax report.
While the luxury market only accounts for about 2 per cent of the total GTA housing market, the unexpectedly strong demand, coupled with a
“severe shortage” of prime properties in higher-end neighbourhoods, is only further fuelling bidding wars and price escalations, it says.
That, in turn, is driving more properties into the “luxury” price range. Even suburban communities such as Vaughan, Markham and Richmond Hill have seen a 54 per cent jump in demand for $1.5 million-plus homes in the first quarter of 2012 over 2011.
But that translates into just 54 luxury homes changing hands in those communities, it’s important to note, up from 35 sales in the first quarter of last year.
The annual report, Upper-End Market Trends 2012, examines prices and trends across Canada, prime neighbourhood by prime neighbourhood.
Luxury sales records were set in 10 of the 16 urban markets the report tracks, although the definition of luxury can vary from $500,000 (in mid-sized markets such as Regina and Halifax) up to $2 million (Greater Vancouver.)
Some 412 homes sold for over $1.5 million from January to the end of March across the GTA, up from 277 during the same time last year, the report says.
While high-end demand in Toronto was hot — especially in neighbourhoods within walking distance of transit — things have cooled in Vancouver where last year a frenzy of foreign buyers not only drove up sales numbers, but skewed average house prices upward right across the country before the buying frenzy eased later in 2011.
Low interest rates, improving consumer confidence and “tremendous confidence in the city’s residential housing market” in the face of stock market and global economic turmoil, are all being cited as factors. But, even then, the sales figures came as a surprise, says Michael Polzler, executive vice president for ReMax Ontario-Atlantic Canada.
“We didn’t expect (luxury sales) to be up nearly this much. This is significant.
“I think there is a lot of momentum out there in the market and people want to buy. If anything, in many cases, there is a shortage of product.”
That shortage is being felt even in the condo sector, Polzler said.
Seven per cent of luxury sales were condos in Toronto’s pricey core, the report notes, most of them in Yorkville.
The highest-priced condo sold in Toronto so far this year went for $5.3 million — a far cry from the record $28 million spent by an international buyer last year for a penthouse, due to be completed this summer, in the new Four Seasons Private Residences and hotel towers.
Regina, where luxury comes in at $500,000 or more, saw the biggest increase in luxury sales this year, up 56 per cent over the first quarter of 2011.
More: New home prices continue to rise
More: Things to watch for when flipping a condo
]]> http://www.moneyville.ca/article/1179107--demand-for-high-priced-homes-up-across-canada http://www.moneyville.ca/article/1179107 Thu, 17 May 2012 11:38:00 -0400

Aurora/Richmond Hill Stats (3/31/2012 - 4/06/2012)

To show why Newmarket's market seems to be so hot, we need to look to the south to see whats been going on there.

Aurora:

Average Sale Price: $530,483
Avg. % of List: 102.11%
# of sales: 18
Avg. Day's on Market (DOM): 18

Richmond Hill:

Average Sale Price: $724,484

Avg. % of List: 101.96%
# of sales: 68
Avg. Day's on Market (DOM): 11

As you can see, the markets to the South make Newmarket look affordable for most, which is why we are seeing many of the buyers coming from the south and driving up the prices.
I have said it before, and Ill say it again, I do not forsee a dramatic crash in the market, simply due to the population growth and the demand for housing. Restrictions, such as Oak Ridges Moraine and the Ontario Greenbelt has meant that Urban Sprawl is coming to an end and intensification and infill development is the next move.

* All data from the Toronto Real estate Board

December 2011 Market Stats - Annual Recap

Night time photos of "Riverwalk Commons"

Some great night time photos of Newmarket's Riverwalk Commons!

Canadian Home Sales Top Expectations

OTTAWA— The Canadian Press
Published Tuesday, Nov. 15, 2011 9:56AM ESTLast updated Tuesday, Nov. 15, 2011 10:20AM ESTcomments
The Canadian Real Estate Association says home sales in Ontario were stronger than anticipated during the third quarter — resulting in a slightly brighter outlook for CREA's 2011 and 2012 national forecasts.

The industry association is now projecting sales this year will be up 1.4 per cent from 2010, half a percentage point better than the previous forecast.

CREA expects there will be slightly fewer units sold next year than in 2011, but the 0.5 per cent decline is an upward revision.

October's sales activity through CREA members was the highest since January and the national average price was up 5.5 per cent from October 2010.

Source

Know When it's Time to Renovate - TREB President's Toronto Sun Column

Toronto SUN Column (as it appears each Friday in the Toronto Sun)

July 22, 2011 -- Living in Toronto and renovating homes seem to go hand in hand. One of the major ways we build equity in our homes is by adding a new bathroom, kitchen or family room. Families grow, space must be maximized, and keeping parents close to work and children in their favourite schools often means, "Honey, It is time to renovate...again!"

Buying a fixer-upper can be a great way to get into a desirable neighbourhood at an affordable cost. It’s important to recognize though, that all renovations involve some inconvenience and a lot of elbow grease. While you’re rolling up your sleeves, it’s wise to maximize your efforts, go green, and remember that what may no longer suit your lifestyle, might be of use to someone else.

Renovating Benefits Others as Well!

A great way to renovate for you while supporting a charitable cause is to consider your local Habitat for Humanity ReStore. This building supply store accepts and resells quality new and used building materials. Funds support Habitat's building programs while reducing the amount of used materials that are headed for overflowing landfills. Check ReStores out online at http://www.habitat.ca/en/community/restores/location.

Regardless of the upgrades you undertake, keep in mind that you can reduce the amount of waste you generate by donating or recycling construction materials. Certainly don’t dismiss the old for the new, if there are items to be reused, refurbishing them can add greater character to your home.

If you are looking for some great tubs and sinks you may have to go no further than your current bathrooms and kitchens. Techniques for resurfacing and countertops made of more recent materials like Caesar Stone, recycled glass, concrete, steel, stones, and the myriad of tiles will give you lots of options for upgrading the look without replacing the whole bathroom or kitchen.

Paint and paint techniques can change the look of a kitchen in a few afternoons, save you money and improve your investment: The Appraisal Institute of Canada says that upgrading kitchens and bathrooms is a smart choice, potentially offering a 75 to 100 per cent return.

Greening your Renovations!

Energy efficient lighting, appliances, faucets, toilets and showerheads are a few of the options for increasing the green factor in these two essential rooms and you can watch your monthly expenses drop.

When it comes to flooring, cork and bamboo are among the greenest options, as they are derived from renewable resources. While bamboo is also an excellent choice for cabinets, wood that is certified by the Forest Stewardship Council of Canada is another responsible option.

Visit the Appraisal Institute of Canada’s RENOVA, an interactive web-based guide to the value of home improvements. RENOVA is designed to give consumers a better idea of the return on investment they can expect for a variety of home improvements.

Household drafts will increase your heating bills and make those lovely spacious rooms an expensive proposition in our colder months. Window and door replacement may offer a more limited return of 50 to 75 per cent, but if your existing units are broken or have been installed for fashion rather than performance, this upgrade should take priority.

When purchasing windows, look for low-E argon-filled units with the Energy Star symbol to achieve the highest thermal efficiency. Note: if you wonder how old your thermo pane windows are, most are stamped with the year and month they were made on the metal piece between the panes of glass.

Similarly, replacing an aging roof may only offer a small return but it’s an upgrade that should not be deferred due to the potential for water damage. Fortunately, roof shingles made from a variety of recycled materials are widely available and sometimes the life expectancy of your new roof is worth paying the extra costs. Housing is a long term investment.

Heating systems can offer a 50 to 75 per cent return, while central air conditioning can deliver 25 to 75 per cent on your investment, but given the extreme temperatures of our climate, these are also wise investments, particularly when you choose models with the Energy Star symbol. We replaced our workable 60 percent efficiency furnace with a high efficiency furnace that, with our new windows and doors keeps us toasty all winter.

While decorating choices may be subject to taste, you’ll find that when it’s time to move again, energy efficient, money-saving upgrades have universal appeal. Renovating can be helpful to you, others, and reduce your carbon footprint all at the same time. Enjoy!

For Greening, Renovating or finding the right home, talk to a Greater Toronto REALTOR® and visit www.TorontoRealEstateBoard.com for neighbourhood profiles, open house listings, market updates and more.

Richard Silver is President of the Toronto Real Estate Board, a professional association that represents 31,000 REALTORS® in the Greater Toronto Area.

for more eral estate information, go to www.darcytoombs.com

Know what to Look for in a Condo

Bill Johnston, TREB President
April 22, 2011 -- Condominium transactions (sales of condo apartments and condo townhouses combined) comprise approximately one in every three resale home transactions in the Greater Toronto Area compared to 25 years ago when condominiums comprised 25 per cent of the market.

There are many advantages to condo living including energy efficiency, proximity to amenities and maintenance free living. There is also a wider selection of condominium housing structures than ever before.

Regardless of the structure all condominium owners hold title to their units and share ownership and responsibility of and for the operating costs of the common elements that comprise the balance of the property.

Maintenance fees, which are paid in addition to your mortgage and property taxes, are directly related to the size of each condominium apartment unit.

While the maintenance fees may include the cost of heat, hydro, building insurance and upkeep of common areas, it is important to understand specifically what is covered in the maintenance fees.

Ask your REALTOR® for help in understanding what your fees will include in the particular condominium you're interested in buying.

Condominium townhouses may also involve maintenance fees. In this case, fees are related to common areas outside of the structure like Snow removal and lawn care.

There are a number of details involved in a condominium purchase that are unique to this housing type. As such, it's wise to work with a REALTOR®, regardless of whether you are buying a new or resale unit.

When buying a new condo unit, buyers should request a disclosure statement. It includes a description of the project's most important features, bylaws that govern the corporation, rules that regulate owners' living environments and the condominium corporation's budget for the first year after registration.

When buying a resale condo, buyers should also request a status certificate, which offers similar information and confirms that the owner is current with common expenses. It's important to speak with your REALTOR® and discuss which conditions are best suited for your offer.

The move-in date for a new condominium is referred to as an occupancy closing, which takes place until the condominium corporation is registered. Again, ask your REALTOR® to help you understand exactly what is and can be expected at closing.

A condominium Board of Directors, consisting of at least three Directors, is responsible for ensuring monies are held in trust, funds are properly invested and records are kept.

Owners meanwhile are responsible for ensuring their units are in good repair and must seek approval for structural changes within them.

To be sure that you are clear as to your responsibilities as a condominium buyer, be sure to talk to a Greater Toronto REALTOR® who can help you find a condominium ideally suited to your lifestyle. For more information visit www.TorontoRealEstateBoard.com


Bill Johnston is President of the Toronto Real Estate Board, a professional association that represents 31,000 REALTORS® in the Greater Toronto Area

Image Source Page: http://urbanrealtytoronto.com/wordpress/2010/08/18/toronto-hotel-boutique-condos-part-2/

Davis Drive Construction update

Davis Drive Construction Update

Coming Soon to Downtown Newmarket

Click on this link for information on the Newmarket Community Urban Space Project (CUSP) which is currently under construction behind main street

Roofing Red Flags - CBC Market Place

Click on the following link to watch a eye opening video on how some shady roofers pick your pockets:

http://www.cbc.ca/marketplace/2011/hittingtheroof/redflags.html

YorkRegion Article: Most satisfied with Newmarket: report

YorkRegion Article: Most satisfied with Newmarket: report

New Mortgage Rules from the Department of Finance

The Harper Government Takes Prudent Action to Support the Long-Term Stability of Canada's Housing Market

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:

1. Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.

2. Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.

3. Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

The Full Article can be read at: http://www.fin.gc.ca/n11/11-003-eng.asp

Real estate market heads into 2011 with stronger than expected momentum - Winnipeg Free Press

Real estate market heads into 2011 with stronger than expected momentum - Winnipeg Free Press

Dec 2010 Toronto Real Estate Board Housing Charts