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"

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/

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 1% solution: 5 tips to help sell your house

By Jennifer Wilson | Wed Mar 23 2011

Whether you’re moving out of town, moving up or splitting up, everyone has the same goal when they’re selling their home: to make as much as they can.

One way to get the best sale price is to invest a few dollars to spruce up your place for prospective buyers. One rule of thumb is that you should set aside 1 per cent of your asking price, so, if you’re listing for $400,000 a renovation budget of $4,000 isn’t out of line.

Of course, certain projects will get you more, though in most cases you won’t get all your money back. The return can be anywhere from nothing, for skylights and pools, to an average of 75 per cent on high-performing kitchens and bathroom projects.

Here are some tips:

Kitchen

You can expect to recover 75 to 100 per cent of your investment in kitchens and bathrooms.

“The payback is tremendous,” says Frank Turco, Home Depot’s trend and design manager. That’s because buyers don’t want to undertake a cumbersome renovation that restricts access to these key spaces.

A few hundred dollars can give your kitchen a whole new look. Cabinets can be cleaned, lightly sanded and painted to look like new, while hardware can also be updated quickly and inexpensively, with new pulls and handles starting at a few dollars a pop. Outdated track lights can be replaced with more fashionable varieties, focused task lighting and undercabinet lighting. Dingy backsplashes can also be refreshed with a coat of paint or new tiles, which are available in peel-and-stick varieties.

For a bit more of a splurge, try replacing laminate cabinets with wood and laminate countertops for something a higher end, such as Corian or granite. New appliances are also a worthy investment, with stainless steel and once again trendy glossy white appealing to buyers.

Bathrooms

In the bathroom, like the kitchen, painting the vanity, and swapping out light fixtures and pulls can refresh the space inexpensively. Upgrading faucets, taps and shower heads are another simple project in the $50 - $100 range.

Additional storage is also essential in the bathroom, so look into closet and cupboard organizing systems and adding extra shelving.

Or go all out and embrace the trend for more spa-like bathrooms with marble tiling, full glass showers with extra nozzles and high-end showerheads or a steam shower. Double sinks, heated floors and upgraded countertops are also nice perks.

Paint

In all spaces, a fresh coat of paint works wonders – bringing homeowners a return of 50 to 70 cents on the dollar, says says Mariano Gigante, a sales representative with Sutton Group. Others like, Re/Max salesperson Justin Kua estimate a fresh paint job can bring in returns of 300 per cent.

“Even if it is a simple thing to fix, buyers want it done,” says Gigante, noting it also helps sell homes quicker than other upgrades. Wipe away scuffed paint and outdated colours with neutral hues for a fresh, buyer friendly look.

Flooring

Ripping out worn carpets and refinishing, or replacing, battered floors can offer returns of 75 to 100 per cent, says Gigante, noting that laminate and wood offer the highest rate of return.

Turco recommends laminate vinyl options, explaining “vinyl has come a long, long way” and is now available in durable planks, tiles and sheets that can mimic almost any look and texture, with many varieties available in the $60 range for 24 square feet. Plus, as far as projects go, it’s “inexpensive and easy, as long as you have a box cutter and a ruler.”

Other upgrades

Replacing doors and windows can bring in 50 to 75 per cent – and help you save on energy costs to boot.

Landscaping, meanwhile, will put roughly 25 to 50 per cent of what you spend back into your pocket. A well-maintained garden, brick paths and even urns can also do a lot to boost your home’s curb appeal.

A buyer’s first impression is key so for an easy fix up under $100, Turco suggests cleaning up the front yard, repainting pots and planters, laying a new welcome mat and painting the front door.

Read about 10 easy ways to boost your home’s curb appeal here.

What not to do

Finishing a basement will see about a 50 per cent return on your investment, but as a big and costly job, Gigante says it’s only worthwhile if the homeowners intend on using it themselves for a while.

Skip the skylight. While additional natural light can be a boost, this project is expected to bring you absolutely no return, says Gigante.

Also avoid adding a swimming pool or Jacuzzi. It usually doesn’t improve your resale value and can even discourage buyers, such as families with small children.

If you are tackling a larger scale reno or working with a contractor, make sure the project comes in at less than your one per cent resale renovation budget, including a hefty contingency fund. The projects that offer the biggest returns – kitchens and bathrooms – can also bring the biggest surprises, snowballing costs as mechanical problems are uncovered.

Jennifer Wilson is the editor of yourhome.ca

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

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.”

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

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

Going Green in Real Estate

January 29, 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 28,000 REALTORS® in the Greater Toronto Area.

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

GTA REALTORS® REPORTING JANUARY MID-MONTH HOUSING STATISTICS

TORONTO, January 18, 2010 - Greater Toronto REALTORS® reported 1,749 existing home sales on the Multiple Listing Service (MLS®) during the first two weeks of January. This resultwas almost double the 888 sales reported for the same period in 2009,when sales had dipped to a recessionary low.

“We have had a strong start to 2010,” said Toronto Real Estate Board President Tom Lebour. “Widespread sales growth in terms of geography and housing type indicates that many households remain confident in their ability to purchase and pay for a home over the long-term.”

The average price for transactions in the first two weeks of January was $395,307, compared to an average of $332,495 for the same period in 2009.

“Double-digit average annual price growth will continue through the first quarter of 2010 as sales remain high relative to listings and we continue to make comparisons to last year’s winter downturn,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Signs of Recovery for 2010: More Listings

January 9, 2010 -- I would like to take this opportunity to wish you all a Happy New Year. We have just crossed the threshold into 2010 and I think it is important to look back on the events that impacted the GTA housing market in 2009 and also consider what the future holds.

Last Thursday, the Toronto Real Estate Board (TREB) released MLS® figures for December resale home transactions in the GTA. There were 5,541 total transactions, with an average price of $411,931. The December results capped off what turned out to be a very impressive year. Sales increased 17 per cent annually to 87,308 – the second highest level of sales under the current TREB boundaries (the record of 93,193 was reached in 2007). Average price for the year climbed to $395,460 – a four per cent increase over 2008. However, simply looking at these numbers on their own masks the interesting ride we took over the last year.

In the first quarter of 2009, Canada was in a recession and existing home sales and prices suffered. In fact, sales had been dropping throughout 2008. According to Jason Mercer, TREB’s Senior Manager of Market Analysis, the balance of the housing downturn in the GTA actually took place in 2008:
“The housing market was and is a leading indicator of changing economic conditions. As we moved through 2008, Canadian consumers were hearing more and more bad news regarding the deteriorating state of the US economy and the problems this would pose for Canada. Households, unsure of what the future would hold in terms of employment and income, put their home purchasing plans on hold well in advance of reported GDP and employment declines. Essentially, downward trending home sales reflected eroding consumer confidence,” said Mercer.

With this back-drop, many people were surprised to see a strong rebound in resale housing demand commence in the late spring of 2009 when unemployment was still rising. Mercer further suggests that the quick recovery made a lot of sense and, in fact, was a key driver to broader economic recovery:
“The Bank of Canada reduced interest rates to record lows in response to the economic downturn. This monetary stimulus had the desired effect. Households that were confident in their employment situation moved quickly to take advantage of the affordable housing market in the GTA. The spin-off consumer spending on housing-related items like furniture, home improvement products and renovation services certainly helped economic recovery,” continued Mercer.

With broader economic recovery seemingly in place, what will the future hold for residential real estate in 2010? I asked Jason Mercer to comment both on the short-term and the long-term prospects in the Toronto area. Here is what he had to say: “The big story in 2010 will be listings. Homes available for sale were in short supply during much of 2009. As home owners react to strong sales and price increases seen in 2009, listings will increase over the next year. With more choice in the market, annual average price growth should moderate into the single digits,” said Mercer.

“Long-term prospects remain positive. Sustained demand for ownership housing is based on population growth, which in Canada comes from immigration. The GTA remains Canada’s single greatest beneficiary of immigration. With Toronto’s ethnic, cultural and labour market diversity, this should continue. Many newcomers will eventually find their way into the home ownership market, helping sustain long-term growth in sales and prices,” continued Mercer.

I know we will all be watching the economic situation closely in the coming year, including changes in the housing market. I look forward to discussing housing market trends with you throughout 2010.

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

December Housing Market Charts

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.

GTA REALTORS® Report November Resale Housing Market Figures

TORONTO, December 3, 2009 - Greater Toronto REALTORS® reported 7,446 sales in November – slightly more than double the November 2008 result when GTA home sales had dipped markedly due to the economic downturn. Year-to-date sales were up 14 per cent compared to the first 11 months of 2008.

“This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006,” said Toronto Real Estate Board President Tom Lebour. “Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.”

The average price for November transactions was up 14 per cent year-over-year to $418,460. The average price year-to-date was up four per cent to $394,464.
“Very strong annual growth rates for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter," according to Jason Mercer, TREB's Senior Manager of Market Analysis. “As we move into the spring, growth rates will move to more sustainable levels.”

Sales still hot despite cooler weather

November 20, 2009 -- Winter may be fast approaching but there is certainly no cooling trend when it comes to the Greater Toronto Area resale housing market.

In the first two weeks of November, Greater Toronto REALTORS® reported 3,666 sales, an 84 per cent increase compared to the same period a year ago. The average price of GTA homes sold during this timeframe also grew, by 10 per cent, to $415,066. Condominium activity throughout the GTA was even more extraordinary. Sales of this housing type increased 90 per cent to 959 transactions, with an average price of $296,664, up 15 per cent year over year.

The City of Toronto experienced the highest increase in sales volumes while average price appreciation was consistent throughout both areas.

The number of sales in the City of Toronto increased by 88 per cent compared to the same period a year ago, reaching a total of 1,560 transactions. The average price meanwhile, climbed to $441,893, a 10 per cent increase from mid-November last year. Condominium sales in Toronto almost doubled to 674 transactions, an increase of 97 per cent from a year ago. They sold at an average price of $317,939, up 13 per cent year-over-year.

In the 905 Region sales activity was up 81 per cent over the first half of November 2008, totaling 2,106 transactions. The average price of a 905 Region home was $395,195, also up 10 per cent from a year ago. Condominium transactions in the 905 Region increased 75 per cent from mid-November last year, to 285 sales. They fetched an average price of $246,351, up 20 per cent year-over-year.

Year-to-date sales throughout the GTA have increased 11 per cent over last year, to a total of 78,233 transactions, putting 2009 on track to finish with some of the best years on record. The average GTA house price has also increased three per cent year-to-date, to $393,180.

While it’s reasonable for sales in the first half this month to be strong as compared to the same period a year ago, when the market experienced a marked decline, such strong price recovery is particularly significant.

I discussed this characteristic of the market with the Toronto Real Estate Board’s Senior Manager of Market Analysis Jason Mercer, who pointed to affordability as an important factor.

“Average home prices recovered quickly in the GTA compared to other centres in countries like the United States because the average priced home remained affordable relative to average household incomes. As consumer confidence in economic recovery improved in the spring, home ownership demand and home prices recovered quickly.”

According to Mercer, the outlook for next year’s spring housing market is also favourable.

“Expect home ownership demand to remain strong in 2010. Market conditions will balance out next year as more homeowners react to the strong sales and price growth reported in the second half of 2009 and list their home. The average resale home price will grow at a sustainable rate next year.


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The Toronto Real Estate Board President's Commentary on the Market

November 13, 2009 -- Despite the fact that the holiday season is fast approaching, the Greater Toronto Area resale housing market continues to thrive. After a brief but marked decline, activity has been very strong since May. Given the profound impact that real estate has on the greater economy, we have experienced an incredibly fortuitous turn of events. With each passing month, this remarkably speedy recovery has taken hold and I’m happy to report that the outlook for the GTA resale housing market is very promising.

I recently attended a Canada Mortgage and Housing Corporation conference aptly titled Road to Recovery, which offered countless reasons as to why the market outlook is bright.

Special guest speaker Joe Berridge, a founding partner in the planning and urban design firm Urban Strategies, made one of the most noteworthy points, indicating that Toronto is now considered a global city, ranking amongst the top 15 Alpha cities in the world. He pointed to several of our city’s most positive characteristics including Toronto’s cultural diversity, acclaimed universities and international airport.

Given that property in the GTA is much more affordable than in the western world’s other high ranking Alpha cities like New York, London and Paris, the opportunity to invest in luxury homes and condominiums here is very appealing to off-shore buyers.

Of course, local buyers also recognize our city’s excellent investment opportunities and in recent years, many have bought condominiums at the pre-construction stage. As these units begin to reach completion within the next year, some investors may choose to list them for sale immediately, which will help to balance the market.

This effect should not be any reason for concern though, given that GTA demographics support a strong outlook for the condominium market. Between the 2001 and 2006 Censuses, the largest population growth was seen for couples without children and one-person households – groups that generally support an increase in condominium construction.

In light of these statistics, high-density land purchases have been on the rise throughout the GTA, particularly in York Region. Between 2006 and 2008, 40 per cent of the GTA’s high-density land purchases were made in the City of Toronto, with York Region following closely behind at 32 per cent, while 13 per cent were made in Peel Region.

Low-rise housing has also recovered from the very bleak period in the last quarter of 2008 and the early part of this year, and immigration has continued to play an important role. Drawn by our city’s cultural mix, diverse employment opportunities and range of housing stock, nearly 100,000 immigrants move to the GTA each year. Given that the majority of these newcomers buy a home within 10 years, the demand for low-rise housing will most certainly continue as well.

Sales of newly constructed low-rise housing have also increased in recent months, which will result in greater housing starts next year. In the long term though, land supply and infrastructure constraints will limit the potential for low-rise development in many areas like York Region.

In its presentation, CMHC also identified several Toronto neighbourhoods that are ripe for gentrification like W06 on the lakeshore, as well as E06 and E04 in the East and North-East Danforth area. These areas contain single detached homes selling for at least 10 per cent less than the GTA average, and are adjacent to districts with above-average selling prices. There’s no doubt that regardless of whether your clients opt for a low-rise or high-density dwelling, a successful purchase always comes down to that old adage: location, location, location.

Given this year’s strong resurgence, we can expect homeowners who have taken note of this activity to boost listings in 2010. As I mentioned at the outset of this message, all of this activity is good news for the broader economy because increased sales translate to increased spending on renovations and professional services, both prior to, and subsequent to each transaction.

If you have questions about market activity or any of TREB’s range of services, please feel free to write to me anytime at trebpres@trebnet.com

Tom Lebour
President

Housing Activity to Strengthen in 2010

OTTAWA, November 2, 2009 — Housing starts have started to recover and are expected to continue to improve in the second half of 2009. Starts are expected to reach 141,900 for the year and will increase to 164,900 for 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) fourth quarter Housing Market Outlook, Canada Edition* report.

“We expect housing markets across Canada to strengthen leading into and over the course of 2010 as economic conditions improve”, said Bob Dugan, Chief Economist for CMHC.

“Demand for existing homes has rebounded since the beginning of the year. In addition, lower inventory levels characterize both the new and existing home markets. As a result, stronger housing demand will be reflected in higher levels of housing starts in 2010”, said Mr. Dugan.

The strong pace of MLS® 1 sales seen in the second and third quarters of this year reflects, in part, activity that was delayed in the previous two quarters and is not likely to be sustained. The level of sales is expected to move back closer in line with anticipated economic conditions. As a result, existing home sales, as measured by the Multiple Listing Service (MLS®), will reach 441,300 units in 2009 and increase to 445,150 units in 2010. The average MLS® price is expected to be $312,950 in 2009 and $324,500 in 2010.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

* The forecasts included in the Housing Market Outlook are based on information available as of October 1, 2009. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

1 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces.


Information on this release:

Charles Sauriol
CMHC
Media Relations
613-748-2799
csauriol@cmhc-schl.gc.ca