The past 10 days in Newmarket Real Estate

The past 10 days have been very active for home sales in Newmarket. The Toronto real Estate Board (TREB) has reported 45 homes sold in Newmarket, ranging from a 3 bedroom semi with a basement apartment for $311,000 ($11,100 over the $299,900 asking price) all the way up to a near 3/4 acre 4-bedroom Estate home which sold for $1,310,000.

The amazing part of all this is that the time at which it is taking to sell these properties. The median (the number in the middle of all the numbers) days on market was 10 days, while the Mode ( The mode is the number that is repeated most often ) was 7. What this means is that the majority of homes are selling fast! It's a great time to be a seller, provided you price your property with the market. The lack of inventory, so far this year, has really started the market off to a record breaking start. The Average price in February 2012 was $445,799, compared to the $392,892 in February 2011!

It's a different story if you are a buyer right now though as you may have to get your self into competition over a property with other buyers. The average sale price has been 99.39% of asking, while the highest percentage of list in  the past 10 days was 108%!!!

Buyers and agents need to be educated on values, but also should be careful not to offer more than a home is really worth. For buyers who require high ratio financing you need to remember that a lender must still approve not only you, but ensure the home is worth what you are paying for it. If a home does not appraise out for what you are offering, you could get into a very sticky situation if you remove your financing condition before the bank appraises the property.

It's hard to say which way our local market is going, but from what I can see, it looks like there are more and more buyers moving north from southern communities based on a lot of the buyers agents office locations... Being a very nice and tidy community in the northern GTA that has some of the most "affordable" real estate prices must have a lot to do with it.

*All the data provided came from a search of sales on TREB of Residential sales that were reported within the past 10 days. For more info on Mode/Median/Average

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.

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.

Furnace Insurance

Hey all,
just want to send a quick note to all you home owners out there. This time of year, your furnace is working overtime due to the cold weather and have just been a victim of a furnace breakdown, I'd like to pass along an idea I'd recomend you consider.

Look into getting a Heating Protection Plan. For $12-$18/month you can place an insurance plan on your furnace that will cover any parts and labour required to repair your furnace. Depending on the plan you pick, you can also include an annual service inspection, which can help to determine how healthy your heating system is.

This past wednesday, a part on my furnace went, and we had no heat... little scary when it happens to you in the middle of winter. We called our local 24 hour service, Canco, and a technitian wasthere within 2 hours. Turns out it was a pressure sensor that had some build up on it, but the guy recommended replacing it to ensure this would not happen again, as it likely would given that my furnace is 14 years old. He did a temporary fix, but olds are this will happen again.

This service call was a well deserved $140 to have the guy come and diagnose the problem, but what stings is that to replace the part would be another $120-$130, totalling $270. Now, if we had a plan that cost $15/month to ensure that any parts and labour are taken care of, then it would cost me $180/year.... Kind of a no brainer in my mond.

The crazy thing here is, the very next day after our heat was turned back on, I recieved in the mail a promotional offer from Direct Energy for $10.99/month for the protection plan =$5/month for the annual service... Can you believe that would come in the mail the next day??? Needless to say I signed up.

Long and the short of it... if you own a home and want to protect your investment, make sure you do schedule annual service on your furnace and consider getting a Heat Protection Plan.

Darcy

Making the jump to home ownership

If one of your long-term aspirations is to become a homeowner you’ll be happy to know that your dream may well be within reach.

To begin planning for your transition from renter to homeowner, it’s essential to have a clear idea of what you can afford by getting pre-approved for a mortgage.

To do so, you need to provide pertinent details like proof of income, to a mortgage broker or financial institution. They will perform a credit check and thereafter, advise you of the maximum mortgage amount for which you qualify. Be sure to obtain a number of quotes to get the most competitive rate.

While as a general rule your monthly housing costs shouldn't exceed 32 per cent of your gross monthly income, there are a number of different mortgage payment options that can make carrying costs more manageable.

Conventional mortgages require a down payment equivalent to 20 per cent of the purchase price however; you can take advantage of a program that offers homebuyers who have a down payment of at least five per cent, access to mortgage insurance, the cost of which can be added to your mortgage.

One option to come up with your down payment is to utilize the Homebuyers’ Plan, which allows homebuyers to make a tax-free withdrawal of up to $25,000 from RRSPs that have been owned for at least 90 days, provided the funds are repaid into an RRSP within 15 years.

If you’re a first time homebuyer, a number of other incentives are available as well. The First Time Home Buyers’ Credit provides a 15 per cent credit on up to $5,000 of closing costs, translating to maximum tax relief of $750.

You are also eligible to receive rebates of the provincial and Toronto land transfer taxes. The maximum provincial land transfer tax (LTT) rebate for first time buyers is $2,000 and the maximum Toronto LTT rebate for first time buyers is $3,725.

Additional benefits are available to all homebuyers. All resale homes for example, are exempt from the GST and all primary residences are exempt from the capital gains tax, which relieves you of paying tax on profit achieved from the sale your home.

Be sure to consult a REALTOR® who can fully explain the provisions of government programs and help you identify homes suited to your budget.

One interesting opportunity for example, is currently being offered through the non-profit organization Options for Homes, which sells condominiums at cost before construction. Units can be reserved for $100 and a loan of up to 15 per cent of the suite’s price can be provided. It’s essentially a second mortgage that, along with a pro-rated share of any price appreciation, only has to be repaid when you sell or lease the unit.

Given that there are so many options to help you go from renting to buying, you can make this year the year you become a homeowner. For more information talk to a REALTOR® and 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.

“Weathering the Storm”: GTA market is holding it’s own in tough times

The Toronto Real Estate Board's President's weekly Messege:

In last week’s article I explained that the Toronto Real Estate Board (TREB) recorded a record 10,955 sales in June. We also experienced the first annual average price increase since August 2008, with the average price rising two per cent to almost $404,000. This week, I want to talk about why the Greater Toronto Area housing market has remained resilient over the past year and also why we should continue to see steady growth in the housing market over the longer term.

So, how is it possible that during a recession we saw record existing home sales last month? TREB’s Senior Manager of Market Analysis, Jason Mercer, points to affordability: “With prices leveling off, mortgage rates at or near historic lows and earnings continuing to grow, the average home became more affordable for the average household this Spring.” Mercer also suggested that “many households were in a holding pattern during the winter months, waiting to see how they would be positioned during these slower economic times. Moving into the spring, households confident in their employment situation moved quickly to take advantage of heightened affordability.” Last week a report released by RBC confirmed that affordability improved over the last quarter in the GTA.

Low mortgage rates have clearly been a factor in keeping the housing market buoyant. This is in stark contrast to the recessions we experienced in the early 1980s and early 1990s, when home buyers were faced with double-digit mortgage rates. According to Mercer, “the Bank of Canada kept inflation in check over the past decade, so they had room to aggressively drop interest rates to help stimulate economic recovery. This wasn’t an option in previous recessions.”

Home ownership will continue to be a wise long-term investment in the GTA because of our steady population growth. This region is the single greatest beneficiary of immigration into Canada. According to Statistics Canada, the GTA has the highest percentage of foreign-born population compared to all other major metropolitan areas around the world. Newcomers have been attracted by the diversity the GTA offers: certainly ethnic and cultural diversity, but also diversity in terms of jobs. Over the long term, people have been able to find employment in almost every sector of the economy. This means that this region is attractive to people from many different walks of life with many different skill sets. At the end of the day, all of these people require a place to live. Some of these newcomers will purchase a home right away; others may rent or live with family or friends before purchasing a home at some point in the future.

When we think about the health of the GTA housing market, we have to take a short and long-term view. We may not experience record sales or price growth this year. But, when we look back on 2009, we will definitely be able to say that the region’s housing market fared very well in the midst of a global economic slow-down. The housing market follows cycles over the short-term, but if we look forward not one or two years, but instead a decade or more, the future looks very bright indeed. Steady population growth will prompt sustainable long-term growth in sales and home values.

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

Amazing May Sales

May was a great month for sales of resale homes in Newmarket.

159 sales this May, compared to 140 from the same month last year. Thats 3 months in a row with a greater number of sales than last year.




Largely due to low interest rates and increased consumer confidence, the local market appears to be gaining strength after the poor winter months Between December - February which collectively only had 139 Sales.




An interesting news story in the Globe and Mail (June 13, 2009) showed how the end end market is still booming. May 2009 in the GTA had the highest number of $1Million+ homes sell in History with 273, beating our May 2007's figure of 266. Many factors could play a role in this, but as the article explains, the timing of low interest rates seems to have a lot to do with it as buyers are coming off the fence and jumping in the market again. (similar artilce can be read at http://toronto.ctv.ca/servlet/an/local/CTVNews/20090612/toronto_home_sales_090612/20090612/?site_codename=Toronto)


All is all, the market is strong and if you are thinking of jumping in the market, there has never been a better time.


If you already own your home and are concerned about selling for less today than possibly next year or the year after, keep in mind that what you plan on buying will also be more expensive. Most people forget that the market is all relative. If prices go up 5% in a year, thats $20,000 on a $400K house and $15,000 on a $300K house. The longer you wait, it may actaully cost you.


If you are thinking of buying or selling, whether it be today, next month, within the year or even next year, please don't hesitate to contact me to put a plan in place. Buying a home should not be a snap decision if you don't know what your doing and making sure you are prepared and have a plan in place will make your home purchase all that much more successful.

Preparing Your Home to Sell!

Getting your home ready for sale is not something that should be rushed but is VITAL and will play a big role in not only how fast your home Sells, as well as for How Much.

Perception matters... BIG TIME!!! Within the first 15 seconds of a Buyer seeing your home, they have probably established some thoughts as to what they expect to see inside. It is crucial to have your home in Tip Top shape before starting showings to get the Best action out of Buyers from Day 1.

Follow these Key Steps to maximize your Bottom Line!

Detach Yourself From Your Home.
- Say to yourself, "This is not my home; it is a house -- a product to be sold much like a bag of potato Chips from your Local Grocers shelves.”
- "Let Go” of your emotions and focus on the fact that soon this house will no longer be yours.
- Picture yourself handing over the to the new owners!
- Don't look backwards -- look toward the future.
- You must put your self in the Buyers Shoes and be as critical as you would be about someone else's home.
- Hire a third party who can give you honest opinions and sound advice.

De-Personalize
Pack up those personal photographs and family heirlooms. Buyers can't see past personal artifacts, and you don't want them to be distracted. You want buyers to imagine their own photos on the walls, and they can't do that if yours are there! You don't want to make any buyer ask, "I wonder what kind of people live in this home?" You want buyers to say, "I can see myself living here."

The Clutter has to GO!!!
People collect an amazing quantity of junk. Consider this: if you haven't touched it in over a year, you probably don't need it.
- If you don't need it, get rid of it by either donating it or throwing it away?
- Remove all books from bookcases to give a consistent feel to the bookcase.
- Pack up those knickknacks that take up space.
- Clean off everything on kitchen and bathroom counter tops.
- Put essential items used daily in a small box that can be stored in a closet or cabinet when not in use.
- This is a head start on the packing you will eventually need to do anyway.

Rearrange Bedroom Closets and Kitchen Cabinets

Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:
- Organize spice jars and canned goods.
- Neatly stack dishes.
- Turn all coffee cup handles facing the same way.
- Hang shirts together, buttoned and facing the same direction.
- Line up shoes.

Rent a Storage Unit

Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since you emptied your bookcases, store them to make more space. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room's purpose and plenty of room to move around. You don't want buyers scratching their heads and saying, "What can I do with this room?"

Remove/Replace Favourite Items

If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, they won't want it, period! The last thing you want is a personal item to blow your sale because the buyers really want it! Pack those items and replace them, if necessary.

Make All The Minor Repairs
- Replace cracked floor or counter tiles.
- Repair any wobbly interlocking pathways or patio stones.
- Patch holes in walls.
- Fix leaky faucets.
- Fix doors that don't close properly and kitchen drawers that jam.
- Consider painting your walls neutral colours, especially if you have grown accustomed to purple or pink walls. (Don't give buyers any reason to remember your home as "the house with the Electric Orange bathroom.")
- Replace burned-out light bulbs.
- If you've considered replacing a worn bedspread, do so now! (You get to take it with you!)

Make the House Sparkle!
- Wash all windows inside and out.
- Rent a pressure washer and spray down sidewalks and exterior.
- Clean out cobwebs.
- Re-caulk tubs, showers and sinks.
- Polish chrome faucets and mirrors.
- Clean out the refrigerator.
- Vacuum daily.
- Wax floors.
- Dust furniture, ceiling fan blades and light fixtures.
- Bleach dingy grout.
- Replace worn rugs and carpets.
- Hang up fresh towels that suit the bathrooms colour (make the investment in new towels if you must).
- Clean and air out any musty smelling areas. Odours are a BIG no-no. Especially Smoke and Pet Urine smalls

Scrutinize
- Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?
- Linger in the doorway of every single room and imagine how your house will look to a buyer.
- Examine carefully how furniture is arranged and move pieces around until it makes sense.
- Make sure window coverings hang level.
- Tune in to the room's tone and function. Does it have impact and pizzazz?
- Does it look like a model home? You're almost finished.
- Check Curb Appeal.If buyers won't get out of her agent's car because they doesn't like the exterior of your home, you'll never get them inside.
- Keep the sidewalks cleared.
- Mow the lawn.
- Paint faded window trim.
- Plant yellow flowers or group flowerpots together. Yellow evokes a buying emotion. (Marigolds are inexpensive).
- Trim your bushes and trees.
- Edge your flowerbeds perimeter for a clean defined look.
- Make sure visitors can clearly read your house number.
- Re-Seal your driveway if there is obvious Colour obscurities.
- In Winter, Make sure your driveway and front pathway is shovelled all the way down to the concrete.

Find out More... Click here to view a Video on Preparing Your Home for an Open House.

If you would like a Copy of The Coldwell Banker Home Enhancement Guide email: Darcy Toombs with your name and address.

Rate the Resale Value of your Reno

While some renovations may pay for themselves by increasing the value of your home, others could hinder a resale. Here’s what you need to know before you book that contractor.

There are lots of reasons for making home improvements, whether to customize a home to your needs, do repairs and maintenance or make a home more appealing for resale. But all not renos are equal when it comes to how they influence the value of your home. Here are some factors to consider.

If you plan to stay

If you plan to stay in your home for a while, and personal enjoyment or maintenance is your main priority, make your reno choices based on your needs and your budget. If you’re not expecting to move anytime soon, it’s best not to assume you’ll necessarily get your reno investment back, further down the road. After all, home improvements have a shelf life, and any renovation can become dated over time.

If you plan to sell

If you’re planning to sell in the next little while, and see your renovations as a way to add value to your home, you may want to take a different approach to your decisions. According to the Appraisal Institute of Canada’s 2004 Home Renovation Survey, the renovations that provide the highest payback potential are bathrooms and kitchens, with a potential investment return of 75% to 100%, and interior and exterior painting, with a potential return of 50% to 100%.

An eye for the buyer

Once you start renovating and decorating for the critical eye of buyers, you will have to consider their tastes as well as your own:

• Choose tasteful, neutral colours and materials that will appeal to the widest possible audience.

• Avoid cutting corners. The quality of workmanship and materials is also a factor in the return on investment.

• Ensure that the home feels consistent throughout. A luxurious new kitchen will look out of place if the rest of the home looks shabby.

• Try to imagine the type of buyer your home and neighbourhood will attract. A starter home for young couples, for example, might not benefit from a lavish bathroom, whereas an executive home might recoup the costs more easily.

Above all, remember that you may not get all your money back. Ask yourself if you’re willing to put up with the inconvenience and stress of a significant renovation like a kitchen or bathroom remodel.You might consider other, smaller improvements that can help your home show better. Replacing flooring, installing a new furnace or replacing windows and doors can also bring good payback potential.

Renos that could cost you

Adding value to a home isn’t simply a matter of adding on the cost of your renovations. The market you’re in, your neighbourhood and local demand will all influence how much the home is worth. Be cautious of over-renovating beyond the price range of these built-in limitations. Adding other features may end up costing you more when it comes to resale. Swimming pools and hot tubs, for example, offer poor returns in colder climates because buyers see in them additional work and cost. Other renos that may fetch lower returns include landscaping, interlocking and asphalt paving, fences and skylights.

- Article comes Courtesy of TD Canada Trust

Should I pay down my mortgage or invest in my RRSP?

This question is a common one, especially when extra cash becomes available and you need to make decisions about how to best allocate your dollars for long term benefit. There is no easy answer and the decision can be a very personal one.

Here are a few tips that can help you make the right choice for your personal circumstances.
Pay off all non-tax deductible high interest rate debt first, such as credit card balances or consumer loans. Then consider using the extra cash for mortgage pre-payment or RRSP contributions.

If you have an uneasy relationship with debt, then eliminating all your debt including your mortgage should be your priority. In other words, if you cannot sleep at night because you worry about your debt load, pay it off as fast as possible. After the debt is brought to a level at which you feel comfortable, then your priorities can more comfortably shift to building your savings. After all, paying off your mortgage is the least risky of all strategies and for highly risk-averse investors; this may be the best choice.

When deciding whether to put extra cash towards your mortgage or towards your RRSP take into consideration the rate of interest paid on the mortgage versus the expected rate of return earned on your RRSP. If you expect to pay a consistently higher rate of return on your mortgage than you expect to earn on your RRSP then it’s likely a good strategy to pay down the mortgage as fast as possible. You can then shift your strategy to savings when the debt is paid off. This is a good rule of thumb in many cases.

Rates on most mortgage debt in recent years are relatively low. As a result, many investors are looking for a way to lower their debt load, but not exclusively. They also want to take advantage of tax-efficient investing in their RRSP to grow their nest egg.

Many investors use a common two-step strategy for using extra cash which can simultaneously achieve the goal of paying down their mortgage faster while also building their RRSP.

1. The first step in the strategy is to invest the extra available cash in the RRSP.
2. The second step in the strategy is to use the tax refund generated by the extra RRSP contribution to pay down the principle of the mortgage.

In certain situations, this strategy can result in the maximum financial benefit over the long term.

The term and interest rate on the mortgage along with the expected return on your RRSP savings are all relevant when making the decision about where to allocate extra cash. Each situation is different. In order to see how all the variables interact, it’s often useful to use a financial calculator specifically designed to assess the impact of various strategies on your long-term financial picture. These types of calculators are available on the Internet and through your financial advisor.

Talk to your Dundee Financial Advisor when extra cash becomes available. Together you can determine the best way to generate maximum benefit from your dollars in a way that suits your personal situation.

This article comes courtesy of:

Scott Munro Financial Advisor
Dundee Wealth Management