TORONTO, November 16, 2011

“The results for the first two weeks of November point to two important facts: First, despite global economic uncertainty, buyers have remained confident in the affordable housing market in the GTA. Second, stronger growth in new listings means that it is becoming easier for buyers to find a home that meets their needs,” said Toronto Real Estate Board President Richard Silver.

The average selling price through the first 14 days of November was $481,548 – up by 10 per cent compared to the average of $437,510 reported for the first two weeks of November 2010.

“Little or no movement is expected for mortgage rates through 2012. Low rates coupled with the consensus outlook for continued economic growth next year suggests that homes will remain affordable in the GTA and households will remain confident in doing deals. Look for the average selling price to advance to the $485,000 mark next year,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

October 28, 2011

Understanding conditions in the real estate market is a good first step.  Current conditions in the Greater Toronto Area resale market remain quite favourable for people looking to take the first step onto the property ladder.

The housing market in the GTA continues to be supported by improving economic conditions which have led to sustained job creation, a lower unemployment rate and accelerating income growth.  Financing remains affordable as well.  The average interest rate for a five-year fixed rate mortgage is very low from a historic perspective.

While it’s important to consider these fundamentals, it is also crucial to closely examine your individual circumstances, especially when determining what you can afford. Financial institutions will help you determine what you can afford by calculating your Gross Debt Service (GDS) ratio, an amount that includes monthly mortgage, tax, and utilities payments and a portion of condominium fees (if applicable). Your GDS ratio normally should not exceed 32 per cent of your gross monthly income. A lender will also look at your total debt picture by calculating your Total Debt Service (TDS) ratio, taking into account all obligations such as your monthly mortgage, car loan, line of credit and credit card obligations.  As a rule of thumb, your TDS ratio should not exceed 40 per cent of your gross monthly income. Be sure to explore of the financing options available through different financial institutions.

When determining a price range it’s important to realistically consider miscellaneous monthly expenses, and to account for costs associated with the transaction including home inspection, survey and legal fees.

Once you’re ready to begin your search, enlist a REALTOR® who will commit to representing your interests in writing using a Buyer Representation Agreement. More information on this important document can be found at www.BRAFirst.com.

To find a home suited to your lifestyle, be sure to explore a number of different housing types and neighbourhoods with your REALTOR® before narrowing your search. REALTORS® have access to information on market conditions in individual neighbourhoods, on future development plans and on a range of local amenities.

Your REALTOR® may also provide information on a number of available government programs to help make your purchase more affordable like the Five Per Cent Down Payment Program, the RRSP Homebuyers’ Plan, the First Time Home Buyers’ Credit, Land Transfer Tax rebates and more.

Once you have found the right fit, your REALTOR® can use their expert negotiation skills to help you achieve a favourable agreement.

Specialized skills and knowledge make your REALTOR® an invaluable resource, buoying your efforts as you navigate through one of life’s most important decisions.

For more information on the home buying process, market updates and neighbourhood profiles visit www.TorontoRealEstateBoard.com

Richard Silver is President of the Toronto Real Estate Board, a professional association that represents 32,000 REALTORS® in the Greater Toronto Area.

Toronto SUN Column (as it appears each Friday in the Toronto Sun)

The article detailed buyers who had bought from floor plans, but, unfortunately, once the unit was built they were disappointed when they realized that one window looked at a brick wall, the floor was laminate and the balcony was “more of a ledge.” This article is a good reminder that there is a lot to consider when deciding to buy a new home.

Condominiums are regulated by the Condominium Act. In recent months, there has been some talk about the need to reform this law, in part to provide better consumer protection. There is no doubt that the act does need reworking, but caveat emptor, or buyers beware, can go a long way to help buyers when purchasing any home.

When buying newly built housing there are many things to consider. Firstly, when you walk into a sales office, understand that often everyone there is working on behalf of the seller/builder. If that is the case, you may have discussions with them, but their fiduciary duty is to the builder, not you as the buyer. With this in mind, you do have the option of working with a realtor and entering into a Buyer Representation Agreement to authorize them to work on your behalf.

At any time that you work with a licensed realtor they must disclose, to all parties, on whose behalf they are working, in writing. For years I have been hoping that Ontario would make disclosure part of all sales that happen in the province. Currently only realtors who are licensed under the Real Estate and Business Brokers Act 2002 must do so. Consumers would be better protected if all parties involved in real estate transactions — including lawyers, private sellers and new construction on-site salespeople — were required to do so. It’s only fair; anyone acting on behalf of someone else should have to disclose their relationship.

Secondly, a very important thing to know is that all buyers of newly built condominiums are entitled by law to a 10 day cooling-off period, during which time they can cancel their agreement. This is a good time to peruse all documentation and take it to a lawyer for review. When dealing with condominiums, it could help to use a lawyer who specializes in condo law. The lawyer may have good advice on stipulations that you can add into the contract to better protect yourself.

Thirdly, understand what you are buying:

 • Make sure that a condominium suits your lifestyle. Do you have a good sense of the reality of a 665-square-foot unit with two bedrooms and two bathrooms? If you have house-sized furniture, are you ready to sell it all to make this type of new space livable?

 • Be diligent in getting the details. If the plans show nine-foot ceilings, is that in all of the rooms? Where will the heating, cooling, and water be located for the apartment below and above? Ask for the full building plans so you can see where the bulkheads are planned.

 • Understand the status of the neighbourhood. Is it a stable neighbourhood with little redevelopment, or is their significant development going on — or coming — that could change the nature of the area and affect things like the view from your unit. The municipality’s Official Plan and Planning Department staff can help you look into the future.

 • Be realistic in your expectations for the property’s value; use common sense. Getting caught up in hype and speculating that your unit will increase dramatically in value from the time you purchase until construction is complete could leave you disappointed.

 • Finally, be sure to consider all of your options. For many homebuyers, newly built housing is the right choice. However, if you are the type of person who likes to “kick the tires” before buying, purchasing a resale property might be a better option for you.

Newly constructed housing is an important part of the real estate market. It fills an important niche and is the right choice for many people. However, as with any major purchase, it is important that you take steps to look out for your best interests. Go the extra step to make sure that you understand what you are buying and consider working with a realtor who can provide assistance and advice during the purchase.

Richard Silver is president of the Toronto Real Estate Board. The views expressed here are those of the president. For more information, go to www.TorontoRealEstateBoard.com. Follow on Twitter @TREB_Official, on Facebook TorontoRealEstateBoard and www.youtube.com/TREBChannel.

Reposted from The Toronto Star

The resale condominium apartment market tightened in the Greater Toronto Area since the Fall of 2010. This tightening was in line with a broader trend in the existing home market, where listings through the end of the second quarter were in short supply compared to a year ago. Condo sales, at 6,721, were up by almost 0.5 per cent in the second quarter, while active listings were down by 13 per cent to 5,641 at the end of June. With more competition between condo buyers, it was no surprise that the year-over-year rate of growth for the median selling price accelerated to over 10 per cent by the end of the quarter.

The supply situation will likely improve in the second half of 2011 and into 2012. Following a large spike in condo apartment completions in the second quarter (most notably in June), total completions through the first six months of the year, at 10,238, were up by 65 per cent compared to the same period in 2010. Generally speaking, increased completions of new condo apartments leads to increased listings in the resale market. Many of these listings will come from investors who purchased one or more units at the pre-construction stage of development and who will now be looking to take advantage of an increase in value during the construction period.

More choice in the condo apartment market will result in more balanced market conditions and a moderation in the annual rate of price growth to a more sustainable pace over the long term.

I suggest that you look at the Commentary below in full screen.

With all that comes rising property values and expensive rentals. Restaurants struggle with high rents. Clubs fight to hold onto fickle late-night partiers.

Expect to see more chain restaurants and stores and less “mom and pop” or “pop and pop” retail. Expect to see more condominium high rises due to the great success of Radio City and some of the other buildings on Carlton Street. That means that some of the Victorian stock may dwindle especially as Ryerson University keeps expanding.

THE GOOD NEWS
If you sit at the corner of Church and Wellesley, you will see your life and old friends walk by… just try your hardest to look your best at all times. Everything is available there and I mean everything.

THE BAD NEWS
If you sit at the corner of Church and Wellesley, you will see your life and old friends walk by… but after a certain age, it gets much harder to stop traffic or even a pedestrian… unless you should fall.

BEST OF ALL
Location , location, location. You are within easy access to subways, shopping, eating and partying. Just remember, as you age, what used to be cool music becomes a lot of noise. Nothing you can do about it. It is just generational. It just happens.

Reprinted from INToronto Magazine.

Centrally situated, this neighbourhood includes grand Victorian and Edwardian detached and semi-detached homes on east-west streets accessible to the subway and great shopping. The shops include the legendary “Five Thieves,” the name given by locals to the specialty food stores just south of the Summerhill LCBO. As the name suggests, make sure you bring a charge card with no limits — your wildest requests will be met.

Just behind these shops at Summerhill you will find one of the strongest condominiums in the downtown condo market. They are built by Crestwood, designed by Brian Gluckstein and named after long-time politician Margaret Scrivener. The suites are well finished and in keeping with the high-end level of the neighbourhood.

THE GOOD NEWS
Great shopping, restaurants and take-out food abound, like All the Best Fine Foods (1101 Yonge St), Le Petit Gourmet (1064 Yonge St), a long-time Toronto landmark, and one of my faves, Patachou (1120 Yonge St), for great salads, bowl-size lattes, amazing desserts and breads. Wine lovers can enjoy the premier LCBO, with its great selection of wines, cooking classes and Saturday wine tastings, all housed in a grand, renovated railway station.

THE BAD NEWS
There are no housing bargains. Prices start over the $1-million mark. And there is a railway that dissects the neighbourhood. The trains are noisy to newcomers but most residents will look askance when you mention it then tell you that you get used to it.

BOTTOM LINE
If you want convenience in the downtown core you can do no better… as long as you can afford the tariff!