REDISCOVER REAL ESTATE

GTA Housing Market: Current Trends and Outlook -September 2010

Resale Market Nearing a Turning Point.The resale market in the Greater Toronto Area (GTA) will put an exclamation point on the remainder of 2010 with a record level of activity this year.

Sales has reach six digits for the first time and price growth will be well above the historical average. This momentum as expected, has slowed in the second half of the year. In fact, the market will look quite different by 2011 as sales levels converge back to their longer-term average and prices show little movement. The era of rockbottom mortgage rates is coming to an end and the red hot GTA housing market will begin to lose its steam.

A full year of record-low borrowing costs has made first-time buyers out of tens of thousands of renters and parents’ basement dwellers in the GTA. However, the primary source of stimulus fuelling this increase in homeownership is already beginning to fade. Five-year mortgage rates are on the move and will be a full percentage point higher by the end of the year. Combining higher rates with the new reality of average prices well above $400,000 will make the transition to homeownership more expensive. The erosion of affordability will cause delay for many fi rsttime buyers, who have proactively accelerated their purchasing decisions and propped up sales temporarily.

Home sales in the GTA, however, are not expected to decline dramatically and will converge to the 10-year average in 2011. More jobs, stronger income growth and higher net migration will provide support for the market. [see full report]

How can I help?

______________________________________________________________

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

Thinking of Buying a New Condo? Do it right!

Congratulations! You’ve decided to purchase a new condo in Toronto. Now what? Walk into a new development’s sales site, get all the information from the sales people there, and then buy something. Right? Think again! Buying a new condo without using an Exclusive Buyer’s Agent is like shooting yourself in the foot.

If you are considering purchasing a new condominium from a builder in Toronto, it is absolutely essential for you to have your own Exclusive Buyer’s Agent. Here’s why:

Using an Exclusive Buyer’s Agent could save you thousands! Every new condo project goes through a staggered sales and marketing process whereby prices increase and availability decreases at each stage of the process. The best agents get their clients in to purchase units at the earliest stages to ensure the lowest possible price and the best possible selection.

The sales people at the sales office work for the builder, not for you. The sales people that the builders hire have a legal obligation to only represent the builder’s interests and have zero obligation to your interests. Be smart and protect yourself! As an analogy, think about being sued by someone and asking the lawyer of the person who is suing you to represent you as well. Of course you would never do this, but buyers of new condos unwittingly do this every time they purchase without having their own Exclusive Buyer’s Agent.

The services of an Exclusive Buyer’s Agent are FREE, yes free to you as the buyer. The builder always pays the buyer’s agent’s fee, so you get professional representation and consultation, all on the builder’s dime.
Technically, any registered real estate sales person can act as a buyer’s agent for you. But very few agents actually have the skill and expertise to offer you anything of value on one of the largest purchases you will ever make!

So why hire me?

◦Experience. I do this everyday and I know the ins and outs and potential pitfalls when purchasing a pre-construction condo. I have sold units at projects all over the city (to clients living in Canada and overseas). I know the secrets to getting my clients in at the earliest possible stage of the sales and marketing process and this means my clients save thousands of dollars!

◦Knowledge. How do you know if you are getting a good price? Does the builder have a good reputation in the industry? Will the project be completed on time? I know the questions to ask and the things to watch out for. I can help you choose the best suites, and avoid the bad suites.  I can help direct you to a lawyer who will review your Agreement of Purchase and Sale and they will walk you through the legal side of things and tell you exactly what you have signed and what the implications are as well as make any recommended amendments or changes to the Agreement.

◦Service. Consider me as your condo buying consultant. I don’t try to ’sell’ my clients anything, I equip them with all information and knowledge they need to make an informed purchase decision. My service is not just for today, or this week when you make your purchase decision, my commitment to you continues right on through from initial purchase until 3-4 years later when your condo is finally ready and you close on the property. There are so many issues that can come up between when you sign the agreement and final closing that it is vital to have a professional resource by your side the whole way through.

Ready to hire me as your Exclusive Buyer’s Agent? Click here to do just that or cantact me directly with the info included below.

Click here for more tips and condo information.

How can I help?

______________________________________________________________

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

The Reality of Home Renovations

Home renovations are taking place in Canadian homes on a daily basis and at a remarkable speed.

Reality television may leave homeowners with the impression that a kitchen can be gutted between commercial breaks, a wall insulated in moments and an exterior addition completed within the hour. Adding value to the sale of your home or simply adding to the enjoyment of your own home is not a new phenomenon for Canadians. However, the lightning speed of these "reality" renovations can mislead the average homeowner in their own renovation plans and leave behind costs that exceed the home's renovated value.

"Many Canadians consider renovations to increase the value of their property for a sale or immediately after a new home purchase," says Ray Leclair, an experienced real estate lawyer and vice-president of the TitlePLUS program at Lawyers' Professional Indemnity Company (LawPRO). "It may be tempting to immediately start tearing down or building up, however, homeowners need to tread carefully, and be sure that they are legally protected with building permits or their reality could be costly."

While it likely comes as no shock to homeowners that the big jobs (for example, structural changes to a home) need building permits, it may be surprising for some to learn that many of the smaller jobs (such as finishing basements, updating plumbing or electrical equipment, or even adding a wood burning stove) may require permits as well.

Recent statistics released by the Canadian Mortgage and Housing Corporation revealed that 45 per cent of households intend to do some form of maintenance and repairs, while 78 per cent will undertake alterations and improvements. Sixty-eight per cent of households who intend to renovate this year, will do so to update, add value, or prepare to sell their home.

"A dream home purchase can turn into a nightmare if you do not acquire the proper permits or if renovations were done by a previous owner without a permit," adds Leclair. "The municipality may force you to remove walls, ceilings, cabinets and other finishes so that an inspector can determine if the work complies with the building requirements or in the worst case, remove the improvement entirely - the first step any would-be renovator should take is to speak to their real estate lawyer to ensure that the work they have planned is compliant with municipal codes."

What options are available for people in this situation?

Some examples include:

• When do municipalities usually require permits? 
• What are the risks of doing work without a permit?
• What are the legal options for buyers of homes where work has been done without a permit?
• Can sellers be held responsible if a home has had work done without a permit?
• How can homeowners and home buyers protect themselves?

To help homeowners avoid disappointments, delays or unpleasant surprises, Leclair suggests consulting an experienced real estate lawyer. Another useful resource is the TitlePLUS Real Simple Real Estate Guide, a website with information on what real estate lawyers do, as well as a mortgage calculator, a locate-a-lawyer feature and other tools. It is available free at titleplus.ca.

How can I help?

______________________________________________________________

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
 

Home prices have peaked: report

With prices at a “precarious 30-year peak,” the home market may be set for a major correction in six red-hot real estate markets in Canada, says a report by the Canadian Centre for Policy Alternatives (CCPA).

Canada’s Housing Bubble: An Accident Waiting to Happen examines trends in house prices in Toronto, Vancouver, Calgary, Edmonton, Montreal and Ottawa between 1980 and 2010 and finds price increases in those cities are outside of a historic comfort level.

On average, inflation-adjusted house prices in these cities have historically held stable at between $150,000 and $220,000 in today’s dollars, but current housing prices in all six major markets are now over $300,000, on average, the report states.

“The bursting of housing bubbles is a rare event in Canada, but the steep rise in house prices in so many cities displays all the hallmarks of an accident waiting to happen,” says the report’s author David Macdonald, a CCPA research associate.

Historical trends indicate Canada’s hottest six real estate markets are more unstable than a generation ago, especially after steep house price increases between 2002-07.

Before 2000, house prices tended to hover within a narrow range of between 3 and 4 times provincial annual median income. Today, house prices are anywhere from 4.7 to 11.3 times the median income.

“As house prices rise outside of their historical range they become much more susceptible to mortgage rate changes,” says Macdonald.

“The hottest six real estate markets could be in for a correction at best or, at worst, a bubble burst. Rate setters at the big banks are in the driver’s seat now as mortgage rates inch up. They need to hit the brakes lightly.”

According to the CCPA, Canada has only had three housing bubbles burst, twice in Vancouver and once in Toronto.

How can I help?

______________________________________________________________

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

Housing bust unlikely, says think-tank.

A U.S.-style housing crash is unlikely in Canada, says a study by the C.D. Howe Institute.

A decline in underwriting standards played an essential role in the American housing boom and subsequent bust. That has not been the case in Canada, says the study released Tuesday.

Canadian housing policies, which avoided the sharp declines in underwriting standards seen in the U.S. “worked well in reducing the possibility of a housing bust in Canada,” said the report.

The C.D. Howe report comes on the heels of one from the Canadian Centre for Policy Alternatives, which said the Canadian housing market is a bubble ready to burst. It also shows the debate that economists are having over the direction of the market.

Virtually all major economists have already said that a U.S.-style meltdown will not happen in Canada. And the Canadian Centre for Policy Alternatives report also says a U.S.-style housing bust is the most extreme scenario, and the unlikeliest to happen. [full story-->]

Tony Wong
BUSINESS REPORTER

How can I help?

______________________________________________________________

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