Your thoughts?

Your thoughts??

Toronto, December 6, 2011

“We have seen strong annual sales growth through the 2011 fall market. The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area,” said Toronto Real Estate Board (TREB) President Richard Silver. “The market has also become better supplied, with annual new listings growth outstripping that of sales. As this trend continues into 2012, we will see more balanced market conditions.” 

The average price for November transactions was $480,421, representing an increase of almost 10 per cent in comparison to $437,494 in November 2010. 

“Despite strong price growth this year, the housing market remains affordable in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The correct method of assessing affordability is to consider the share of the average household’s income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace.”

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)

September 23, 2011

Energy costs are one of the biggest on-going expenses of home ownership, which is why a home’s energy efficiency is an important consideration for home buyers.  This is even truer given that Ontario’s residential electricity rates are predicted to rise by 46 per cent over the next five years.

Energy efficiency upgrades to homes can make financial sense for existing homeowners or for home buyers whose budgets may include renovations on their newly purchased home.  Things like high-efficiency furnaces, new windows, and extra insulation can bring thousands of dollars in annual savings on energy bills. 

Unfortunately, the up-front costs for making energy efficiency improvements to a home can be prohibitive, especially for new homeowners.  That’s where government policy can make a difference.   In the past, homeowners could apply for government rebates to help offset the costs of energy efficiency upgrades from both the federal and provincial governments.   Under these programs, homeowners were eligible for up to $10,000 in rebates for energy efficiency retrofits; half from the provincial government and half from the federal government.   Over 90,000 home owners completed energy efficient retrofits to their properties with the assistance of these rebates.

Despite this success, last spring, both levels of government ended these programs. However, since then, the federal government re-started its program.  The federal government’s current program once again provides a maximum of $5,000 in potential rebates.  To be eligible, renovations and a post-retrofit evaluation must be conducted between June 6, 2011 and March 31, 2012.

Unfortunately, the provincial government has, so far, not also re-started its rebate program. As a result, homeowners are currently only eligible for half of the rebates that they previously could have received.

Energy efficient homes not only benefit the homeowner by reducing their energy bills, but they also benefit the entire province by reducing strain on energy producing facilities and helping to protect our natural environment.   For these reasons, REALTORS® strongly believe that all provincial parties should make it a priority to re-introduce provincial rebates for energy efficiency upgrades to homes. 

The public agrees with REALTORS® on this issue.  A recent Ipsos-Reid survey of Ontario home owners revealed that 92 per cent of Ontarians thought that the government should create more incentives for homeowners to make environmentally friendly and energy efficient renovations to their homes.

Tell your provincial candidates that helping homeowners to make energy efficiency retrofits to homes should be a priority.  REALTORS® are delivering this message and we encourage you to do so also.

Follow TREB on www.twitter.com/TREB_Official, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel

Adorna is totally irreverent, and exacting in her teaching and understanding of Rules, Regulations and just plain common sense within the Real Estate community.  After a class I asked her to discuss Fiduciary duties and Buyer representation. I loved her response so much that I asked her recently if I could share these explanations with you.

Adorna Carroll Explaining Fiduciary Duties

Mr.and Mrs. Buyer thank you very much for the opportunity to meet with you and I’m very excited that I have this opportunity to discuss with you my most important legal responsibilities.

I am obligated by law to follow your lawful instructions pertinent to the transaction.  My responsibility is provide you with your options and alternatives; discuss the ramifications of your choices and then take a step back and give you an opportunity to think about what you want to do while I wait for your lawful instruction.

I’m here to watch out for your interest above my own. When’s the last time a sales person ever said that, to you? I’m not in sales, I’m in service Mr/Ms Buyer.

Whatever I know in a transaction, you’ll know.  Sometimes it’s fact, sometimes it’s rumour but I’m not allowed to decide what is important for you to know.  I am obligated by law to tell you what your situation is and then you determine if that information is important to you.

My highest responsibility is confidentiality.  I promise you right now I’m an excellent secret keeper and I will not talk about your personal secrets, your financial position, your motivation to sell or your urgency to anyone including the agents in my office.

I am accountable to you by law for your money, your paperwork and your dates so that you will not put any of your deposit money or general funds in jeopardy.

I am obligated to provide you with skills and contentious service.  The minimum required by my license law and regulations is competent service but I am obligated to a higher standard.

Thank you for allowing me to explain our most important legal responsibilities Mr/Ms Buyer. I know that there are a lot of real estate agents in our marketplace but only a true professional would be able to explain them like I did and I would be honoured to represent your interest.

Adorna Carroll Explains Buyer Representation

Once you’ve been pre-approved for your loan, we’ll start to go out shopping for property. When that time comes you will be provided with lists of property that are in your budget range and you will be doing your “homework” by driving around to determine if properties in your price range are in neighborhoods that you may be interested in.

When you see a for sale by owner sign on the front lawn, I just represent you.

When you see another company sign on the front lawn, I just represent you.

When you see our company sign on the front lawn, then my company has two clients in the same transaction – equal treatment, equal information- if I were to know the lowest prices the sellers can accept I can’t tell you, if I know the highest price you’re willing to pay I can’t tell them; you are entitled to know market information and all client confidential nformation (financial situation, motivation, urgency and personal secrets) will never be betrayed- do you have any questions?

She says it so well….

Here is the new Format for Market Watch for the East Region.

Here is the new format for Market Watch for the West Region.

Let me know what you think…

A search here will show that I have written blogs about this event before. One of my favorite sessions is called “Innovation Showcase” or I call it…..”The new kids on the block”.

There were 4 Presentations: Yobongo.com, Skygrid.com, ThinkNear.com and Houzz.com.

The last Houzz.com is something everyone should check out right away if you are looking for design ideas or designers for your home. It is a great application for homeowners and will make it easier for us all to communicate our needs and wants when it comes to design. You can create an “idea book”and it will save you from schlepping design magazines all over and still not finding what you are looking for…probably the second largest cause of divorce could be cured with one web site!

It was very well received and I suggest you try it out and let us know what you think….