REDISCOVER REAL ESTATE

$1.5 million = A room with a view

Homebuyers are trading huge homes for smaller places, but what they're buying 'better be nice'

 

Bill Taylor
Special to the Star

When you've paid the high side of a million bucks for what passes in this market for a small condo, can you be sure that those seven digits have bought you a place high enough on the hog that you can hold your head up and be proud?

Such is life at the more stratospheric and service-oriented end of the market that one clued-in observer can dismiss a hot new highrise with, "I don't consider them in the luxury class because they're not $1,000 a square foot."  And then add, in a moment of horrified candour: "Isn't that sick?"

Sick or not, $1,000 a square foot would be a bargain in several downtown developments. Some are still no more than a hole in the ground and won't be ready for occupancy until 2011. But, economic slump or not, sales reportedly are steady and their smaller apartments, in particular, are architectural hotcakes. read full article

 

3,681 TRANSACTIONS IN FIRST HALF OF APRIL

Greater Toronto REALTORS® reported 3,681 transactions in the first half of April, down seven per cent compared to 3,955 during the same period last year.“In lock-step with the favorable March results, resale housing market conditions in the first half of April were markedly improved compared to the winter time,” said TREB President Maureen O’Neill. “Households that were on the sidelines at the beginning of the year are now taking advantage of lower interest rates and lower home prices.”

Average price for MLS® sales was $383,161, down four per cent from $399,117 last year. “The average home price in the GTA stabilized as resale market conditions tightened over the past two months,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “Existing home sales increased relative to new listings.” Mercer says.

Confused about the market? Is it really the best time to buy? Is there any advantages to sell in a buyer's market? Toronto's real estate market is going through a change and you will be surprised with the statistics. While some properties are still selling for more than asking with multiple offers, others sit on the market longer. Undoubtedly, owning a home in Toronto has become a more affordable option than ever before. Know your options! 

 

 

 

 

How can I help you today?

_________________________________________________

b r i a n m a y e r real estate sales representative

Royal LePage Your Community Realty Brokerage

independently owned and operated

187 King St. East Toronto, ON. M5A 1J5

(416)-637-8000

Helping You is What We Do.

A referral remains the highest compliment I can receive.

www.brianmayer.ca

 

Early signs of a rebound

Spring Home Value Survey

After a brutal in the resale market, March saw a modest revival- year-over-year sales were still down 7% but that was the smallest decline in five months. How’s your neighbourhood doing? Find what homes are selling for where you live here

 

How can I help you today?

____________________________________________________

b r i a n m a y e r real estate sales representative

Royal LePage Your Community Realty Brokerage

independently owned and operated

187 King St. East Toronto, ON. M5A 1J5

(416)-637-8000

Helping You is What We Do.

A referral remains the highest compliment I can receive.

www.brianmayer.ca

Earth Day - Wednesday April 22

Earth Day Network was founded on the premise that all people, regardless of race, gender, income, or geography, have a moral right to a healthy, sustainable environment. Our mission is to broaden and diversify the environmental movement worldwide, and to mobilize it as the most effective vehicle for promoting a healthy, sustainable environment. website

 

Eco-Friendly Events & Activities in Toronto 

In celebration of Earth Day on April 22, green events are springing up across the city, spreading the word about conservation and eco-friendly living. With everything from fundraisers to feasts, there's something green for everyone this year. more

Spring brings sales thaw

Hints of recovery as volume of existing home sales up 7 per cent in March

Looking to get into a bigger home, townhouse owner James VanderLinden decided last month was the time to make a move. A buyer in a struggling economy, he bought a new home under asking price - paying $1.1-million in midtown Toronto - but hadn't yet sold his first place.

"I wanted to take advantage of the market," said Mr. VanderLinden, 34, who works in online advertising. "I knew also that selling my current house, I would probably not get as much money for it as I would if the market was up."

But his fears were put to rest two days later, when his townhouse sold for $275,000, just $4,000 under his asking price. It's a cautious sign for optimism that's playing out across the country, where sales volumes are up. After a long, harsh winter of woe, a housing sales thaw may be on its way.

The Canadian Real Estate Association said yesterday that the volume of existing home sales was up 7 per cent in March, on the heels of February's 10.3-per-cent gain in activity.

"The story is that price reductions are working as intended. They are stabilizing the market and they are drawing buyers...who are taking advantage of improved affordability," said Gregory Klump, CREA's chief economist.  *full story

*Source: From Thursday's Globe and Mail

Spring housing market shows signs of life

Record low interest rates and declining home prices have made the spring market somewhat rosier than many analysts had predicted.

While sales of existing homes in Canada dropped by 13.7 per cent in March compared with a year earlier, the decline has slowed significantly, according to figures released yesterday by the Canadian Real Estate Association. In February, for example, sales were off by 31 per cent compared with a year ago.

"The improvement in recent months is an encouraging sign that the Canadian housing market has crossed the halfway point for this downturn," BMO Capital Markets economist Robert Kavcic wrote in a report.

Seasonally adjusted, Canadian existing home sales rose 7 per cent in March, the second month in a row that sales have increased.

Average home prices fell by 7.7 per cent to $288,641, the smallest year-over-year decline in six months.

"The report does provide some evidence that Canadian housing market activity may have improved modestly in recent months as home buyers take advantage of improved buying conditions," said Millan Mulraine, economics strategist for TD Securities.

Last week, the Toronto Real Estate Board reported a similar slowing in the decline of sales and prices, as sales fell 7 per cent in March from a year ago, the smallest year-over-year decline in five months.

The price of an average home in Toronto was also relatively stable at $362,052, down less than 5 per cent from the same month last year.

Still, analysts cautioned frosty weather in January and February may have caused some sales to spill into March, while a land-transfer tax introduced by the city of Toronto last year had possibly deflated sales a year ago. And the all important jobs numbers remain dismal as the national unemployment rate rose to 8 per cent in March, from 6.1 per cent a year ago.

"Despite two months of improved sales activity, buyers are still in control of the Canadian real estate market," Kavcic stated. "Further price declines and low mortgage rates will help trigger a recovery, but a reversal in the wave of job losses is one major prerequisite still outstanding."

Western Canada continues to face the most intense price pressure, with average home prices down by 10 per cent year-over-year in Vancouver, Calgary and Edmonton. The Atlantic provinces continued to hold up well, with Saint John, N.B., up by 13 per cent.

"With the Canadian economy continuing to be in a very intense recession, and labour market conditions continuing to worsen at an alarming pace, we expect overall housing market activity to remain soft in the coming months," analyst Mulraine said.

In the United States, there was cause for optimism. The National Association of Homebuilders' housing market index, a barometer of confidence in the market, jumped a larger-than-expected five points in April to a six-month high, the largest increase since 2003.

"Record high affordability, record low mortgage rates and the government's efforts to jump-start economic growth are giving potential buyers enough optimism to step in and take a look around," BMO Capital Markets Economist Jennifer Lee said.

*source: Tony Wong -Business Reporter, The Toronto Star

Renovate or buy a home?

New perspectives on an old dilemma

You are desperate for more living space and now face the big decision – renovate your current home, or buy another one?     

The current economic downturn makes it even more critical to look ahead and consider different scenarios. Both renovating and buying have pros and cons, and both are stressful, so make the bigger decision first – decide what you want and where you want to live. Then decide whether to renovate or buy. If you like your current neighbourhood, renovation may make sense, provided that the renovated value of your home is in line with the values of other homes in your area.

Three key factors are also important to consider in making this decision:

Financial costs, non-financial costs and resale value.

From the financial perspective, one simple rule is to determine what it will cost to move. This cost generally equates to about 10 per cent of the current value of your home and includes real estate commissions, land transfer tax, and moving and legal costs. Compare this cost to the cost of renovating, and if renovating is less then take the less expensive route.

However, homes are much more than dollars and cents, so you should also think about the non-financial costs of relocating either yourself or your family – including the stress and upheaval involved in a potential move and the time it will take you to find services and professionals in your new community. If you do have children, consider how a new school, with new friendships will impact the kids.

Resale Value

Your home is one of the largest investments you will ever make so its resale value is always a major consideration.

It’s a good time to move up in the real-estate market right now because higher-value properties have declined more in value. At the same time, it’s a cooler market for sellers. If you decide to move up, think resale and follow the number one rule – location, location, location.

If you are renovating, spend your money wisely – some renovations add more value than others to the final selling price. A kitchen or bathroom renovation will potentially return 100 per cent of your costs. A basement, family room or deck is another good investment, while landscaping upgrades only return about a quarter of your costs. Putting in a pool depends on your area so talk to your Realtor first — ideally it pays to be the worst home on the best street.

Current Economy and Financing Options

While mortgage rates are very attractive right now, financial institutions are more demanding. Today more than ever, he cautions people about taking on any extra debt, especially in an uncertain job market, and he encourages them to manage their existing debt.

If you are buying, check that you qualify for the size of mortgage you require. With the downturn in the real-estate market, financial institutions are looking harder at a home’s appraised value (which is probably lower than it was a year ago) and will only lend a lower percentage of that value.

If you are selling your home, look at its current appraised value and make sure you can get your equity out of it – if not, it may not pay to either move or renovate. Renewing your mortgage may also be tricky. Weigh the costs of other financing options such as a mortgage insured by CMHC (Canada Mortgage and Housing Corporation.

If you are renovating, Eco-Energy Retrofit grants – available for items including a furnace or insulation – will help reduce your costs. The new Home Renovation Tax Credit is also available on expenditures made before February 2010. This is a 15-per-cent federal tax credit on eligible expenditures between $1,000 and $10,000, which produces a maximum credit of $1,350 — http://www.cra-arc.gc.ca/hrtc/ 

Canada housing starts rise

REUTERS

April 08, 2009

 

TORONTO (Reuters) - Canadian housing starts rose an unexpectedly strong 13.7 percent in March, breaking a six-month losing streak thanks to renewed strength in Ontario and Quebec, Canada Mortgage and Housing Corp said on Wednesday.

 

Ground breaking on new homes climbed to a seasonally adjusted annualized rate of 154,700 units from an upwardly revised 136,100 units in February, CMHC said.

 

Analysts had predicted 130,000 starts in March.

 

Construction of urban single-family homes rose 1.3 percent to 46,400 units last month from 45,800 in February. Construction of multiple dwellings, such as condos, jumped by 28.3 percent to an annual rate of 81,500 units from 63,500.

 

"New home construction is now at a more sustainable level after having been exceptionally strong over the past seven years, exceeding 200,000 units per year," the CMHC said in a statement.

 

Rural starts in March were estimated at an annual rate of 26,800 units, unchanged from February.

 

The housing downturn in Canada has hit starts, home prices as well as sales activity. Economists describe this as part of a "correction" in the sector, which is expected to last the better part of this year before rebounding in 2010.

 

March Resale Housing Results Bring Positive News

In March 2009, Greater Toronto REALTORS® reported 6,171 sales

– down seven per cent from March 2008, representing the smallest year-over-year decline in the last five months.  The average price for March transactions was $362,052 – down less than five per cent from the same month last year full story  

 

 

 

 

Market Watch here

 

What's selling? Who's buying?

Filled with optimism and ready to buy, first timers are dominating the market!

Julie and Grant Wethers would like to bolster the number of sales in the Toronto real estate market. They just can't find a house they want to buy. The couple have been searching for about six months now, since returning from Calgary last fall. And while prices in the Toronto area have slipped, they haven't tumbled the way many buyers were anticipating.   

By CAROLYN IRELAND From Friday's Globe and Mail full story