a "New" way to search for homes

August 14, 2009 -- Torontonians’ passion for property has been re-ignited.

Nearly 10,000 Greater Toronto Area homeowners made the decision to move to their next residence in July, which represents a record for that month. Specifically, 9,967 homes changed hands, an increase of 28 per cent from July 2008.

After making a decision to move, many of these buyers likely began a preliminary search for their next home by using the Canadian Real Estate Association’s public website REALTOR.ca.

Unlike the Multiple Listing Service®, which is a sophisticated computer database of sold, expired and active listings accessed only by REALTORS®, CREA’s REALTOR.ca website advertises general information about resale homes available on the market.

With respect to newly built homes, an equivalent marketing vehicle doesn’t exist, prompting some buyers to approach their search of this segment of the market by compiling newspaper clippings, website addresses and trade magazine advertisements.

Searching for a new home using this strategy though means that many options are left unidentified.

Fortunately, there is a simple and comprehensive alternative to searching for newly constructed homes. Greater Toronto REALTORS® have access to a database of new home listings through RealNet Canada Inc. Founded in 1995, RealNet provides coverage in both the commercial real estate investment and residential development markets.

In the Greater Toronto Area, RealNet reports on 99 per cent of all developments greater than 15 units in size. Its database includes more than 35,000 current records, which are updated on a monthly basis.

This means that regardless of whether you’re looking for a detached home in the suburbs, a high rise condo unit in the city, or anything in between, your REALTOR® can provide you with complete details on all of your new home construction options.

Like a typical MLS® inquiry, a search of the RealNet database can be conducted by housing type, location and price range. Once you have refined your criteria, even more information can be found like builder names, number of bedrooms, lot sizes and quantity of available units. You’ll be able to learn about condo fees, occupancy dates, and the availability of parking and storage lockers as well.

Even if you already have a specific development in mind, your REALTOR’s® access to RealNet information can help you measure your preferred builder’s value proposition by offering a broader perspective of all available options. It will also help you to carefully weigh your decision with respect to choosing new versus resale housing.

As well, REALTORS® can obtain detailed statistical reports on the new home market through RealNet. Key information is highlighted including the number of product offerings, the previous month's sales, remaining inventory, average size, average price and average 12-month absorption by housing type.

Regardless of whether you’re searching for a home with the latest design features or old-world charm, be sure to identify all of your options by talking to a REALTOR®. They can advise you on government programs for homebuyers, provide information on local amenities and negotiate a solid agreement on your behalf.

For more information about buying or selling a home, updates on the market and neighbourhood profiles visit www.TorontoRealEstateBoard.com.

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

More sales in March 09 than March 08!!!!

Homes are selling!

No doubt about it, the market has been busy with activity and rightfully so when you consider that this is likely the best buying environment we have likely ever seen.

March 2009 saw 128 sales in Newmarket, which was up 10 from the month of March in 2008. Now, weather may have played a slight role in that as I seem to remember March 2008 did not have the same weather that March 09 had. Compared to February 09's sales of 72 for the month, it seems apparent that the spring market is flourishing.

However, although the volume of sales has increased significantly, so has the volume of active listings. With 379 active listing in Newmarket at the end of March, the sales-Listing ratio is still quite low @ 33.77% which still should be classified as a buyers market (under 40%).

Still being considered a buyers market, prices are down from a year ago. The average price for Newmarket in March 2009 was $335,243 down from $357,226 in 2008 and the median price for March 09 was $315,000 down from $340,000. The lower prices, in my opinion, reflect the larger number of first time buyers entering the market into townhouses, semi's and smaller detached homes. However, homes from $350,000+ range have definitely seen a drop in demand compared to years past.

March 2009 Real Estate Facts:

- In March 2009, there where 13 sales in Newmarket's more prestigious neighbourhoods of Glenway, Stonehaven, and Wyndam Village.

- The highest sale price was for a Yonge street 3 bedroom bungalow on 7.37 acres, which fetched $2,650,000.

- The lowest sale price was $95,000 for a vacant 40ft x 134ft Lot in the older part of town.

Buyers Market Means more SPP's

A warm March has seem to have brought out the buyers. Sales volume is way up over last month and the month isn't even over yet!

With only 72 sales in Newmarket (N07) in February 09, things were looking down, but as of the time of writing this, the Toronto Real Estate Board was reporting 112 Properties sold in March thus far, with another 20 properties marked as conditionally sold on various conditions, with 6 of those being SPP's.

SPP's are those offers which are conditional on the "Sale of Purchasers Property", which is where a buyer makes an offer to buy a home that is conditional on them selling their own home.

As we come into more of a buyers market, we see more an more SPP's, because the buyer is in a position to negotiate it. However, this does not mean that the seller will come a prisoner to the buyer selling their home, as most SPP's are always come with an "escape clause".

An escape clause is the Sellers out. Meaning, that because most SPP's are conditional for 4-6 weeks, an escape clause allows the sellers to still offer the property for sale to other buyers and accept other offers (Higher or Lower). If they decide to accept an offer from another Buyer (Buyer 2), because it is more favourable to them, the seller must then inform the First Buyer (Buyer 1) that another offer has been accepted and this is their notice period. All escape clauses have a notice period, which typically is between 24-48 hours, which is the length of time that Buyer 1 has to decide if they are able to remove their SPP condition, or walk away from the deal and retrieve their deposit.

If Buyer 1 decides to Firm up, then Buyer 2 retrieves their deposit and Buyer 1 Buys the House. If Buyer 1 decides to walk away, then Buyer 2 becomes the Buyer of the home.

It is important to note, that during the process, all facts of the offers remain confidential between Buyers and Seller to ensure that there is no disadvantage to any party.

So, this being said, in a Buyers market, don't be afraid to make your offer conditional on selling your home. With the level of inventory available, most sellers would be thrilled just to have some sort of offer on the table.