REDISCOVER REAL ESTATE

Buyer Beware! NDP vows condo act reform in Ontario...

If you are thinking of buying pre-construction and directly from a builder, here is a good article to read! It's in your best interest to make sure you have 'buyer representation' with a Realtor and have your lawyer review all documents.

Tom Smeraldo and Emilio Ojeda walked into their new Cabbagetown-area condo, took one look at their “view” (a brick wall), “balcony” (more of a ledge), and “hardwood floor” (actually laminate) and phoned their lawyer.

“We were so disappointed. We just wanted out of the deal,” said Smeraldo.

They couldn’t. Not unless they wanted to lose tens of thousands in deposits. Instead, the couple set out on a three-year battle with the builder over what they say are broken promises and lingering deficiencies.

Theirs is a cautionary tale, one you’ve likely heard before and will hear again as the GTA increasingly becomes a community of condo dwellers. As of December, there were about 264,000 condo units in the region.

Despite the considerable size and affluence associated with the demographic, it’s a vulnerable segment of the population, says NDP MPP Rosario Marchese.

With the Trinity-Spadina representative leading the charge, the NDP has vowed to tackle condominium act reform if elected this fall.

The proposed changes include clearer, “good faith” language in the purchase paperwork, as well as the creation of a judicial board to handle disputes between condo owners, boards and developers.

“Right now there’s nothing quick and nothing cheap about that process at all,” Marchese said. “If a renter has a problem with the owner of that building they’re able to go to renter’s tribunal, pay a $25 fee and defend themselves. If you’ve got a problem as a condo owner, where do you go? A lawyer. That’s the problem.”

This tribunal would be separate from Tarion, which regulates builders of new homes, enforcing construction standards. full story 

Robyn Doolittle Urban Affairs Reporter

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Real estate buyers ignoring turmoil: experts

TORONTO - Canada's real estate market is now expected to grow this year rather than decline, as buyers take advantage of continued low interest rates that are intended to offset recent economic turmoil, economists said Tuesday.

The comments came after the Canadian Real Estate Association revised its 2011 national forecast for home resales, citing stronger than expected sales and higher prices in the second quarter.

An earlier CREA forecast that called for a one per cent dip in sales this year from 2011. But the association said Tuesday sales should grow this year — albeit less than one per cent above 2010.

CIBC deputy chief economist Benjamin Tal said recent stock market uncertainty due to the European debt crisis and the United States credit downgrade is actually helping boost sales in Canada's real-estate market.

Bad economic news abroad tends to keep Canadian interest rates low, he said.

Since the European and American debt issues came to a head in recent weeks, economists have been predicting the Bank of Canada will leave its key rate untouched at one per cent until at least next year. full story-->

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Too many condos? Not necessarily, Says RBC

Canadian condominium construction is strong, but not necessarily excessive, since new units are filling a gap by creating much needed rental stock, says a report by the Royal Bank of Canada.

“Concerns have been raised about the growing number of investors fuelling the growth in condo sales in recent years,” said Robert Hogue, a senior economist with RBC in a report Thursday. “We believe that this phenomenon must be looked at in the context of relatively tight rental market conditions in large Canadian cities, from which investors aim to benefit.”

He says condominium units fill a need in the rental market because few apartment buildings have been initiated in the last two decades.

RBC estimates about 20 per cent of all condominiums are rented. In recent years, that figure could be higher, since market research firm Urbanation Inc. estimates that 45 to 60 per cent of all new units are being purchased by investors. Some of those investors will rent their property out, while others will sell the unit on closing.

Vacancy rates in the Toronto market dropped sharply to 1.6 per cent in April compared with 2.7 per cent a year earlier, according to the Canada Mortgage and Housing Corporation.

A 1.6 per cent vacancy rate means that only 16 of every 1000 apartments remain vacant. The CMHC said stronger immigration and declining affordability for first-time buyers have made some opt for rental accommodation.

Condominium sales have been on a tear in the Toronto area, representing the largest market in North America. full article -->

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Your market watch!

GTA REALTORS® Report July Resale Housing Market Figures

August 4, 2011 -- Greater Toronto REALTORS® reported 7,922 transactions through the TorontoMLS® system in July 2011, representing a 23 per cent increase over July 2010. Total sales through the first seven months of this year amounted to 55,863 – down by 1.3 per cent compared to the same period in 2010. After adjusting for seasonal fluctuations, the July figure continued to point to an annual sales result close to 90,000 – in line with results from the previous six months. See details.

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