Will Title Insurance cover a hidden defect?

How could insurance cover a Hidden [latent] defect?

By its very nature, it is something hidden.

Not so fast .....

the case revolves around Paul and Stefanie Macdonald who bought a home in the city that they believed had been poorly renovated by its previous owner. When they attempted to undertake renovations of their own, they found that load-bearing walls had been taken out without building permits – making the second floor unsafe for use. This prompted the city of Toronto to issue a work order to support the unsafe floors with the Macdonalds paying out $75,000. They made a claim to Chicago Title on their insurance policy to cover these costs because the policy was said to provide coverage if the title was unmarketable. However, the claim was denied as the company stated that it was not covered under the policy.
This, in turn, prompted court action beginning in 2014, with the judge ruling that the municipal work order resulted from a hidden defect that was not covered under the policy. It stated that the work order did not affect “ownership of the land” as it was not registered on the property title – even though work orders are never registered against the title.
http://www.insurancebusiness.ca/ca/news/breaking-news/huge-title-insurance-case-reaches-conclusion-217419.aspx

 It was last year that the decision was reversed with the insurer ordered to pay more than $50,000 in costs with the ruling suggesting the hidden defect made the title unmarketable. Now an appeal by the insurer has been dismissed and the ruling upheld.

So  what's the conclusion?

The situation will be taken under advisement and studied by the Industry.   I am sure if you are in the situation to sue; you now have case law in your favour.

Do you check the insurance claims history of a house before you buy? 
You can actually    With a Home Verified Report
http://eleganthomesinwesttoronto.blogspot.ca/2013/07/did-you-buy-house-with-flood-damage.html

#AskPylyp   Work with an experienced agent.

Call me   Let's talk 

Living in a plastic world; Tips for managing your debt

In the early 20th century, Canadians had very little personal or consumer debt. Individuals mainly used cash to purchase products and services while universal credit cards didn’t even exist until the 1950s. In the early 1900s, banks would seldom lend money to middle and working class people so they rented their homes or paid for them as they were being built. This meant no mortgages, no lines of credit, no car loans, and no credit cards.

Most of us probably can’t imagine a life where we save up for years before making major purchases. In fact, according to the Canadian Bankers Association, there were 64.1 million Visa and MasterCard cards in circulation in Canada in November 2008. It’s safe to say that debt plays a large part in the lives of most young people these days – but that’s not necessarily a bad thing.

Good debt vs. bad debt

Debt is often made to sound like a bad word but in reality, low-interest loans that allow you to obtain a higher education or a place for your family to live can be a good thing. They make large purchases affordable to the average consumer. The problem lies in carrying high-interest-rate, non-deductible debt such as credit cards.

But what should you do if you find yourself drowning in debt?

First, let’s talk about what you shouldn’t do. You shouldn’t pay off your highinterest debt by using some of your Registered Retirement Savings Plan (RRSP) money. When you remove cash from your RRSP to pay a debt you’ll have to pay income tax on the money you withdraw, and you’ll forfeit the years of tax-deferred growth that would have contributed to your retirement lifestyle.

That being said, you must find extra money somewhere and here are a few tips to help you do so.

Consider a debt consolidation loan

Ask about combining or “consolidating” your debts into one loan that is used to pay off all your debts. In return, you make monthly payments on the loan at a lower interest rate. Then, you can use the extra money you have left over every month to pay down your debt even faster. Of course, while you are reducing your overall monthly payments, be aware that you may also be extending the length of time over which you are carrying the debt.

Budget, budget, budget

Take a critical look at your income and expenses. Do you know where your money goes every month? Small changes in your spending habits can yield big returns – and every extra cent you save can be used to pay down your debt. Remember to plan a budget reasonably. If your goals are too lofty, chances are you won’t stick to them at all.

Pay close attention at tax time

Another way to free up cash flow is to take advantage of every possible tax deduction and tax credit that may apply to you – including items like moving expenses, child-care expenses, tuition fees, medical expenses and charitable donations.

It’s true that the average household debt has increased during the last few decades; however, this doesn’t have to mean financial crisis for your family. By taking a serious look at your debt and finding small ways to reduce it, you can improve your financial situation and still save for your future. For more ideas on how to trim your debt, give us a call.

JOHN SCHOLL, B. Math, CGA, EPC   John's Home Page

The New Way to Hunt for a New Home

If you’ve ever hunted for a resale home, chances are you’re well acquainted with the Canadian Real Estate Association’s consumer site Realtor.ca (formerly MLS.ca). Millions of Canadians rely on it every month to learn about their housing market. It provides insight on nearly all the resale inventory available through CREA Realtors.

While it may not be the flashiest site on Earth, it’s current and comprehensive and it does the trick. If you’re searching for a new home, however, you likely have a folder overflowing with newspaper clippings and builder brochures and a dozen (or so) builder websites pegged as favourite URLs. With the hours spent on your computer, you’re ready to add “Real Estate Analyst” to your résumé.

Why is it so much harder to shop for a new home?

Well, up until recently, access to comprehensive, up-to-date information on new homes has only been available to those in the building and development industry. But things have changed.

Toronto-based RealNet Canada has been compiling data on new construction for years. Working with local builders to amass an inventory of records, they have become the official source of new housing data for BILD (Building Industry & Land Development Association, formerly the Greater Toronto Home Builders’ Association).

RealNet reports on 99% of developments over 15 units in the GTA, and their information is updated monthly. And now your Realtor has them, too — nearly 40,000 current records right at their fingertips. Sitting down with your Realtor (the service is not available to the general public), you’ll be able to view loads of details on available properties in your desired areas, separated into high-rise and low-rise. Want to see two-bedroom condos at Yonge and Bloor? RealNet has them. Fancy a three-bedroom townhouse in Aurora? RealNet has them. The search is similar to any other, allowing users to find properties based on geography, price, type and number of bedrooms. RealNet new-home records show the individual details, including price ranges, lot sizes, options, available parking, occupancy dates and more. There are also tidbits that you just can’t find anywhere else — like what the condo fees will be, the deposit structure and whether or not you can buy a storage locker.

Some house hunters may prefer to conduct their online research independently by visiting consumer websites. If you come across properties of interest on your own, you can contact your Realtor to see how they compare to others in the area. Having a well-informed Realtor involved offers significant benefits. In a fluctuating market like the one we’re currently experiencing, you’ll want to be as informed as possible. Through TREB and RealNet statistics, your Realtor is armed with industrial-strength information on both new and resale properties — data which will aid you in making better real estate decisions.

With a Realtor by your side, you’ll have someone who understands your life needs, financial goals and best interests when advising you during key moments, not to mention helping to coordinate multiple sales and closings. Next time you’re looking to fuel your real estate addiction, invite your Realtor over for a tour of what’s going down in the suburbs or up in the city. You’ll have the benefit of an expert armed with the latest in market intelligence and you’ll save yourself the frustration of searching the Web in vain — and maybe even a tank of gas or two.

DAVE YOUNG - SUN MEDIA 23rd February 2009

For Sale By Owner Toronto Real Estate

Sometimes I truly feel sorry for the FSBO's

I recently came across a situation when the owner of the property had a certain concept, and the FSBO advertiser sold them a Pie in the Sky Idea.

Here's the situation;

Owner's of a New home SAVES SAVES SAVES the commission on the sale of their Brand New house that they did not move into. It is and continues to be vacant.

They place a FSBO sign on the lawn clearly identifying the property.

They PAID this internet site and concept provider in good Faith that their house would be exposed to the market and they would Save.

The phone number they wrote in on the sign.... Was the telephone number of the FSBO site's contact to sign up as a FSBO.

The FSBO site has no way to cross reference the phone number to a property, there is no way to direct the caller to a certain Owner, there is mechanism to book an appointment, there is no available information to contact the owner.

Has the FSBO site done anything wrong? Not really. They promised for the $500 that the home would be advertised online and provided a sign. Is that all? The Owner's have assumed that posting the telephone numbers would have people calling to show and buy their house. No FSBO company offers any appointment booking or prospect screening services.

The owner? They didn't understand the concept of selling themselves, clearly.

The loss? The house is sitting, unattended on a quiet street, VACANT, with no prospects viewing it, or calling from the sign as the contact information was miss posted.

Realtors are paid on performance and successful completion of task. No Up front fees. All the marketing expenses are borne by the Realtor or Real Estate Company.

What is lost here is the carrying charges on that property for probably 2-3 months while they are wondering why no one is calling, an eventual sale with a normal 45-70 day closing, property taxes, utilities and heating a vacant house during the winter season. If there is no mortgage; well indeed you have forfeited the opportunity cost of using your money for 4 - 6 months.

But the FSBO site told you, you would save.

With 164,000 properties listed in Toronto and only 74,500 actually sold, realtors are batting 50%. The odds for FSBO's are obviously lower, no matter the claims made by the FSBO sites.

Realtors also need to be creative to create a buzz about your property.

If you are considering the sale of your property meet with a professional experienced Realtor who will explain the process in plain english, so you understand. A seasoned agent also will offer you guaranteed service and an easy out if you are unhappy.

I would be pleased to meet with you at your convenience. David Pylyp can be reached by either calling 905 361 3387 or email David@Davidpylyp.com

Land Transfer Tax Has Punishing Effect on House Sales

Study Says Land Transfer Tax Unfair and Wasteful

The City of Toronto's Land Transfer Tax (LTT), introduced last year, "has had punishing effects on the Toronto housing market, reducing transactions and lowering average prices," says a study by the C.D. Howe Institute. It also says that there's no advantage to using an LTT instead of simply raising property taxes, but there is plenty of downside to this type of tax.

In Sand in the Gears: Evaluating the Effects of Toronto's Land Transfer Tax authors Benjamin Dachis, Gilles Duranton and Matthew A. Turner say the Toronto LTT caused a 16 per cent decline in the number of single-family homes sold after January 2008 and a 1.5 per cent reduction in house values (an average of $6,400 per house). The Toronto Real Estate Board (TREB), which lobbied vigorously to defeat the tax before it came into effect last February, says the tax costs average home buyers about $4,000 in addition to a similar tax levied by the Ontario government. The board says the tax has also had a negative economic impact, estimated at $170 million in 2008.

"We calculate that in its first year, the LTT will cause a reduction in household mobility -- at least 3,500 families in the municipality of Toronto will stay in houses that are too big or too small, or are too far from their workplace or school," says the study. "The dollar value of this lost mobility is about $1 for every $13 of revenue that the LTT generated for Toronto's coffers, or about $12 million per year. We also find that the LTT has led to significant new administrative expenses."

The study argues that if the city had raised property taxes by eight per cent rather than introducing the LTT, it would raise the same amount of money but not discourage mobility. "It follows that the welfare of Toronto residents could be improved if the city reduced its reliance on the LTT in favour of the preexisting property tax," says the study.

City Councillor Shelley Carroll, the budget chief, told local media that bumping up property taxes would hurt seniors on fixed incomes, driving them out of their homes. Taxing the sale of a home takes money "only from those who can afford it, when they can afford it," she said.

The study examined real estate transactions near the border of the City of Toronto, and compared changes in transaction volumes and values with those of adjacent municipalities. Only single-family homes were included – TREB says that if condos are added, more than 5,000 resale transactions were probably lost in the first year of the tax.

"When people buy a home, they usually spend thousands of dollars on related things like renovations, furniture and appliances," says TREB president Maureen O'Neill in a news release. "Thousand of Toronto jobs depend on this spending. Any city policy that impacts housing sales has a direct impact on the city's economy and jobs."

The study says, "It is reasonable to expect that the effects of Toronto's LTT are similar to the effects of LTTs imposed by the Province of Ontario and by other provinces and municipalities. Thus, our analysis also suggests that welfare improvements are possible if these other governments decrease their reliance on LTTs in favour of regular property taxes. Other municipalities and provinces that currently levy LTTs, or are considering doing so, should consider an alternative tax to raise the equivalent funds."

In Canada, LTTs are used in British Columbia, Manitoba, Ontario, Quebec, New Brunswick, PEI and some Nova Scotia municipalities, says the study. The City of Winnipeg has the power to impose an LTT but hasn't done so yet. In the United States, 35 states and the District of Columbia impose LTTs, along with many municipalities.

TREB is now calling for the end of the LTT. "We believe that the Toronto Land Transfer Tax is unfair and now a study by respected economists is validating that view," says O'Neill. "Not only is this tax unfair to home buyers and sellers, but also to the thousands of people whose jobs depend on the housing sector."

However, it's unlikely the city will kill the tax. It was hoping to raise $240 million per year once the tax was fully implemented, but with the slowing real estate market, that may be optimistic. Work is now underway on the city's 2009 budget, and Mayor David Miller has pledged that he will try and keep property tax increases to between two and four per cent. Meanwhile, a recent survey showed his approval rating at 59 per cent, which is about the same as it was when he was last elected.

David Pylyp: When First Time Home or Condo Buyers start looking for their Dream Home they are often shocked at how much of their down payment goes to Taxes, New meter installations, Provincial Taxes on CMHC Insurance and Lawyer's fees. With a modest nest egg of often $ 20,000 a First Time Buyer may have $ 5 - 7,000 in expenses.

This impacts what they are able to buy, combined with the choices available to them. Given the locational choice of Humber Bay Shore or Etobicoke Condos or moving slightly west into the City of Mississauga, a Buyer is able to extend there buying power.

Positive perspective to real estate downturn in report

Warning: the following article contains positive information from an independent third party.

I hate to be the bearer of good news, but there's actually some out there, although you'd never know it most days. For example, the "Real Estate Trends" report recently released by the Scotiabank Group was remarkably positive once you got past the first line.

The opening line of the Global Economic Research report by Adrienne Warren of Scotia Economics bluntly declared that "Canada's longest housing boom of the postwar period has come to an end."
We all know that, but the balance of the report put that opening statement into some healthy perspective, something that has been sorely lacking in most recent media reports on the state of the housing market.

"We argue against taking an overly alarmist view to domestic housing prospects," says Warren. "This is not a U.S.-style bust caused by overbuilding, speculative buying and imprudent lending, but rather a cyclical slowdown accompanied by a valuation adjustment in several large centres (out West) where booming demand conditions and temporary supply constraints led to an overshooting in prices."

Driving home the U.S. comparison, Warren writes that "Canada's mortgage market is significantly different than its U.S. counterpart, with a much smaller subprime exposure, less interest rate reset risk, lower use of home equity withdrawal and investor mortgages and more conservative lending criteria.

"Canadian households are far less leveraged than those in the United States, and less exposed to any erosion in underlying asset values," Warren continues.

"Record unsold housing inventories, mounting foreclosures, overbuilding and credit constraints are bigger factors behind the continuing and steep slide in U.S. home prices than overvaluation, none of which are major concerns in Canada."

She goes on to note that apart from mortgage and balance sheet considerations, there are other key differences between the U.S. and Canada including the fact that the inventory of for-sale homes on both the new and resale market, while moving up, is still well-contained relative to prior cycles.

"With builders in most jurisdictions beginning to slow the pace of new construction, and with a low risk of widespread foreclosures, the Canadian market does not face the massive inventory glut underlying record-setting U.S. price declines."

Warren tracked real estate price increases over 10 years in 10 different countries to find that home price appreciation in the U.S. and Canada has actually been "relatively modest" by international standards, rising 50 per cent and 61 per cent respectively.

Based on the International Monetary Fund's housing valuation model, which estimates the extent to which house price increases are unexplained by fundamentals, Canada's housing market is the "least overvalued."

Warren does see a down side risk to home prices in Canada, but sees it out West more than here in the GTA.

"We expect that the correction in national average prices from their late 2007 peak will probably be in the range of 10-15 per cent, well below the ongoing U.S. retrenchment.

"Much of this realignment will occur in Canada's three Western provinces, and will leave intact most of the significant price appreciation of recent years."

I would like to repeat the line above – "leave intact most of the significant price appreciation of recent years" – because it speaks to the reason that it's always a good time to buy if you are buying for the right reasons, namely shelter and long-term financial security.

To read the full Scotiabank report, visit newhomes.org and click on news and issues.

Michael Moldenhauer is President of the Building Industry and Land Development Association. His column appears Saturdays in New in Homes. The views expressed are those of the president. Email: president@bildgta.ca.

David Pylyp I have been reporting these same if not similar facts for almost a year now, but my circulation is not at 3-500 Thousand per day. Please read and inform yourselves of the factual data available to you and your family as you make investment choices.

Why Its Great to Sell in December?

December is the slowest month for sales in the Toronto Real Estate market...and that is a good thing. Find out why....!

10 Reasons for Selling During the Christmas Holidays by Roland Lewis

• Most December and early January buyers are particularly serious and very likely facing some sort of deadline.
• January is the biggest transfer month of the year and job transferee’s use the holidays to house hunt.
• Many people want to buy before the end of the year for financial and tax reasons. Investors usually want to close by year-end for tax purposes.
• Most sellers wait until spring or summer to list their home. This means that during the winter months your property will have far less competition versus any other time of the year.
• Homes show well when decorated for the holidays creating a sense of family and people are much more emotionally drawn to the house, emotion sells.
• Many people take vacation around the holidays allowing more time to look for a home.
• Remodeling, decorating, appliance installation and other services are more available and at less of a premium.
• Lenders aren’t as busy and can process mortgage loans faster.
• Showings will be fewer and less intrusive, but more likely to be fruitful with motivated, qualified buyers.
• Many homes that have been on the market for more than 60 days, will be taken off the market and relisted in January ie) less property on the market = more focus on your home.

For a Market Evaluation to get you started Click here.

What is IMPACT Online Marketing for your Home?

Is YOUR Tenant behind in their rent?

Is your Tenant behind in their payments?

Have you talked to them many times to no avail?

What do you do?

Too often when I am consulted the tenant is already 60 to 90 days in arrears, and the situation has become hostile. If you were a management company, with an apartment building, you would indeed leave a fews days grace, but you would immediately serve the Tenant with a Form N4 – Notice to End a Tenancy Early for Non-payment of Rent.

Complete the details correctly, Make sure that you have included all items. Serve this (give or deliver) in person, to an adult at the residence, leave in the mailbox, slip under the door, send by Post Courier or Fax.

Once done, Complete a Certificate of Service.

Since you have established the Termination Date of the rental and left suitable Notice period based on the situation of your rental e.g. if Month to Month, 14 days is required, you can proceed to the next step.

This is followed by the Form L1 - Application to end a tenancy for non-payment of rent and to collect rent the tenant owesFiling fee: $150.00

Prepare your paperwork then attend at the local Landlord Tenant Board office. They will take your documents and file them with a pending court date. They will (LTB) make copies for you with the court stamp of registration and identify each copy belonging to whom.

Serve this document on the tenant. Complete your Certificate of Service and Fax it to the court office on the number provided.

The Tenant now has access to free legal advise. At the court date the Tenant will have access to Duty Counsel.

Do you homework. Check it once, Check it Twice. Nothing is more frustrating than attending at the Tribunal to realise you have transposed a date or missed a name.

Working with unhappy landlords was at one point in time a stalward contribution to my business model. I would meet landlords who eventually became " DONT WANNERS" (They didn't want to be landlords anymore). They often had outside jobs and didn't have the time or experience to deal with the difficulties of property management.

Landlord Tenant Tribunal representation now requires a licence and a paralegal background ( E & OE Insurance and Law Society Registration) I think this is wonderful as it brings the industry standards higher when a representative must be licenced.

If you are a landlord and are close to becoming a Don't Wanner I would like to meet with you to discuss your situation and refer you to the specialised help you may need. Maybe you just need to know where to get the forms.

Experience is not expense. Its Priceless.

RE/MAX Housing Outlook 2009

Threat of global recession to hinder home sales in major Canadian housing markets in 2008 and 2009, says RE/MAX

Recovery linked to economic stability next year

Global economic uncertainty weighed heavily on residential real estate activity in most major Canadian centres during the latter half of 2008. Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX.

Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009. Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored. If inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity, we could see a bounce back as early as spring.

The RE/MAX Housing Market Outlook for 2009 examined residential real estate trends in 22 markets across the country and found that average price held up remarkably well in 2008, despite 13 centres reporting double-digit declines in home sales. Solid gains earlier in the year likely served to prop-up housing values at year-end. The prognosis for housing activity in the first six to nine months of 2009 is somewhat static, given continued volatility in financial markets and the threat of recession, but as stability returns, housing markets are expected to recover.

Nationally, 440,000 homes are expected to change hands in 2008, down 15 per cent from record 2007 levels. Canadian housing values are expected to hover at $300,000, a nominal three per cent decline from last year’s historic peak. By year-end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000.

Major markets are evenly split in terms of housing performance in 2009, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels. The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb three per cent in 2009. Housing values are expected to hold the line in 2009, with St. John’s, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.

Canada’s real estate environment is considerably more complex than it has been in recent years. The landscape is definitely changing -- with most markets shifting into either balanced or buyer’s territory. The shut out is over. Sellers no longer rule the roost. Opportunities exist for purchasers like never before, including lower interest rates, greater inventory levels, the luxury of time to make decisions, and the upper-hand at the negotiating table. Motivated vendors will need to take note of the new mindset and set their prices accordingly.

Canadian sellers are slowly adjusting to new realities. For most markets, 2008 started in balanced territory and moved into buyer’s market conditions during the latter half of 2008. The year ahead will prove challenging, especially for vendors.

While the economy will dictate real estate performance next year, it’s important to remember that demand still exists in the marketplace. In the midst of stock market turmoil, sold signs continue to appear on lawns across the country. With affordable lending rates and increased selection, first-time and move-up buyers with good credit may choose to play their investment strategy safe and purchase a home. The comfort of a tangible investment like real estate goes a long way in tough times.


Download entire report

The Greater Fool - Pump and Dump

There is news, and then there’s sort-of news. Real news might be that the government is about to fall, new home sales in Toronto last month plunged or that twenty million Americans have mortgages which exceed their home values. Oh yeah, and Mumbai. Real news these days tends to be real depressing.

That may be why there`s so much sort-of news, especially online, where anybody can turn out a spiffy blog with passable gfx and look credible. That’s ok. It’s a free country. But if you were to start a blog and claim Stephen Harper is in control or that the west coast of India is lovely this time of year, few people would believe you, and the consequences would be thin.

However, when it comes to real estate news, it’s a different story. Legions of potential homebuyers and misty-eyed young couples use the web to search out a home and to research current conditions. Often they turn to ‘real estate professionals’ who position themselves as authorities, or the purveyors of credible market information. Big mistake, kids. Almost every realtor out there masquerading as an analyst seems unable to resist the temptation to pump and dump.

And I’m sad to say this. It drags down the entire professional. Maybe there should be something radical – like regulation.

Anyway, here’s a taste of what I mean.

In Vancouver, condo flogger Ken Stef says “Housing prices will not stay low for long!” Hmmm. Based on what? Oh yeah, a story in the Homes Section of the Vancouver Sun by developer Peter Simpson. “Six months ago, people were dancing on the ‘don’t-worry-be-happy’ bandwagon. A couple of those same guys now believe the world is nearing its end,” Stef says, “and have assumed the fetal position in some dark, clammy corner… The return to a balanced market offers many opportunities to buyers.”

Vancouver. Average home price down $75,359 in six months. Annualized decline, 21.7%. Welcome to a balanced market. Next stop, the Taj Hotel for a quick drink.
(Speaking of Van madness, please see chart, and my note, below.)

In Toronto, condo pumpers Laurin and Natalie Jeffrey boldly headline, “Buyers not deterred by doom and gloom reports.” They point to a fluff piece in the Star which reports 2,100 new homes and condos were sold in the GTA (population 6,000,000) in October. If there is a lesson in all of this, it’s not to get caught up in all the exaggerated doom and gloom,” the Jeffreys exude. “If the circumstances have finally come together and you are in the right position to buy that new home or condo, don’t let it slip away to someone else because you’re psyched out by all the negative headlines or thinking you might get it for less down the road.”

“Unlike the US or Western Canada where prices spiked dramatically, driven by subprime mortgage lending in the US and commodity wealth out west, GTA new home prices have risen gradually, and according to Canada Mortgage and Housing Corp., will rise a further 1.8% in 2009.”

Sure they will. Say, is that the same CMHC which forecast a 6% increase for prices in the GTA in 2008? Amazing how those pointy-headed guys missed the $45,713 average price drop in the last six months, a 25.9% annual decline. And as for new home sales last month, they were down 44% in Toronto. Hey, condo babes, where do I sign? Pant, pant.

Now, I understand fully real estate practitioners are sales people. I also understand most are honest, decent and ethical. And I know this is a bitch of a time in which to make a living on commission. But real estate is a commodity which moves higher and lower in response to a myriad of factors and after more than eight years of up, it’s going to have at least three or four years of down. That doesn’t mean the world stops or that people will cease buying and selling houses.

But it does mean purchasers will be more wary, value-conscious and discerning, while sellers must be realistic, pragmatic and pliant.

It also means realtors who hope to weather this storm must be seen as credible and trustworthy. If they set themselves up with blogs and snazzy web sites full of opinion, at least what they have to say should be believable. This is not a market anybody with a sales license can wish better. Shame on those who lure in buyers with false prophecies or prey on the uninformed with misinformation.

When the buyers return, you won’t.

David Pylyp; I don't want to argue the points, The Facts are the Facts, But look at the facts yourself contained in the report below vs reading a headline. Garth predicts a decline and Canada Mortgage and Housing predicts a flatline (1.2% increase year over year.) Employment stats indicate with a continuing depression in jobs (manufacturing in Southern Ontario) our unemployment rates may skyrocket from 6.5 to 7.0 or maybe 7.2%.

The seminar that I attended (December 1st, Hosted by Denise Pisani TD Mortgage Manager and CMHC economists) revealed some interesting staticstics about confidence in the market place and pent up demand. The highest jump in values was the condo market quoted at 9% where the detached homes increased 4.2% over the same one year 2007 - 2008 period. This is fed by affordability where first time buyers entering the market place are limited by their downpayment and monthly budget restrictions. If you are Selling and Buying at the same time, local market conditions do not affect your purchase. Yes, You may sell for less, But you will buy for less too.

Check The Bank of Canada website for interest rate trends. Check the How the Government bought Mortgages from the Bank for yourselves. Read the source material. It is all available to you. Unfortunately CMHC is not in the business of selling newspapers or books, they merely report the facts.

This Outlook report for the Greater Toronto Area is published semi-annually and offers forecasts and analyses of trends in the new, resale and rental housing markets. For the new home market, housing starts and price changes are examined in detail, while the resale section presents sales activity, average prices, and listings. Analysis of the rental market focuses on vacancy rates, average rents and related forecasts. An overview and forecast of key economic indicators is also detailed, along with other factors affecting the local economy and housing market.

If the report will not download for you, send me an email and I will forward the actual pdf file,

Your comments are always invited.

If you are considering selling or buying I would like to hear from you.

Roncesvalles Village Road Reconstruction

The Roncesvalles Village street reconstruction is going ahead starting in August '09

While attending the Roncesvalles MacDonell Residents' Association meeting last night, at Fern Public School, the audience was presented with an articulate powerpoint slide show about the reconstruction plans for the main street, Queen to Dundas, that will improve the streetcar tracks, address watermain issues and at the same time with input from the local BIA and residents association deal with beautification.

This is a constantly improving neighbourhood with a strong voice in municipal planning. Issues on the table are the widening of sidewalks to make space for cafe style merchants, pedestrian bump outs ( sidewalks that encroach the roadway) and the greening of the street with new plantings of trees on the west side of the boulevard (where homes are predominantly residential). The elimination of the tree planting boxes will assist the tree's lifespan, enhance sidewalk space and provide storm water run off catchment basins to assist water drainage. All in all, a very detailed and sensible plan of improvements while other work is the cause of the change. They are also addressing traffic flow, bicycle access and snow collection.

As an aside I was thinking about why there is development on the east side of Roncesvalles and not the west. The same applies to the Bloor west Village strip where commercial properties dominate the North side and not the south. Simply SUNSHINE. The stores and business' with premium loctions had the afternoon sun to assist their merchant activities. Out for a promenade with the pram? You would prefer the sunny side of the street.

The extension of the boulevard (bump outs) also addressed concerns about pedestrian traffic and the location of Copernicus Lodge (retirement home) and the elders skooting across a busy thoroughfare. The bump outs make the distance much shorter. There are already some curb planted bum outs that exist at Fermanagh and Roncesvalles (Royal Bank) and at the Wright Avenue and Roncesvalles (CIBC).

Another project now nearing completion is the Wabash ParkCommunity Recreation Centre that is opening now and is accepting bookings starting January '09.

The Roncesvalles-MacDonell Residents Association was formed in 1973 and meets monthly from August to May, on the last Tuesday of the month.

If you would like to live in Bloor west Village or Roncesvalles Village to enjoy the sense of community and local vibrance, I invite you to contact me regarding finding you, your home.

Glass half full or half empty?

Housing market in the Greater Toronto Area

Toronto Real Estate Board stats for October created some heated dialogue in the industry in recent weeks. While many believe that the dismal statistics reflect the recent volatility in financial markets, some are now asking if they also identify an emerging trend in the Greater Toronto Area.

The simple answer is no. Although there are some serious negative factors influencing the marketplace, one month does not make a market. We need several consecutive months of momentum – one way or another – before we can really determine the direction of the market.

Make no mistake. 2008 has presented our industry with challenges across the board. Unit sales are down 16 per cent from one year ago, hovering at approximately 70,000, while average price at $380,654 is up marginally over year–to–date figures for the same period in 2007. And the prognosis will get worse before it gets better, considering the new land transfer tax rate implemented in January, 2008 artificially inflated housing values during the fourth quarter of 2007. Average price hovered close to $400,000 in October, November, and December of last year – which will be the measuring stick in the months ahead.

Clearly, market conditions have shifted in favour of the buyer. There are more homes listed for sale than one year ago and houses are taking longer to sell. Our forecast for 2008 – released in October of 2007 – said as much.

Sellers are adjusting to new market realities – albeit reluctantly – while buyers are taking it all in. Some are sitting on the fence, waiting for housing values to fall further or interest rates to decline a percentage point or two more. The courageous are jumping into the market, taking advantage of lower prices, greater selection, and less competition.

For those that are trading in the same market, it’s all relative. Sellers may get less than they thought for their homes, but they’ll also pay less on the other side of the transaction. With market conditions stabilizing, first–time buyers now have the luxury of time in making their housing decisions. They also have greater purchasing power than they had one year ago – and their dollar will go much farther.

Unlike other investment vehicles, residential real estate serves two purposes. It’s still considered an investment, but it is also a roof over your head. We know from past experience that housing appreciates at a rate of five per cent annually. It’s cyclical, so it may rise and fall, but the risk involved will never be as steep or as serious as in the stock market, where the value of your portfolio can drop 30 per cent overnight and some of your stocks can fall to 0. You also can’t live in your mutual fund.

Real estate in the Greater Toronto Area has faced many challenges over the years but continued to experience steady growth. In 2009, there are some announcements that are expected to have a positive impact on the housing market and they are as follows:

• The Bank of Canada has indicted that lending rates may fall further in 2009.
  
• Federal government intervention in the form of a $75 billion mortgage purchase from the CMHC will free up additional credit.


• Measures will be introduced by both the Federal and Provincial government to bolster the economy. In Ontario, that could mean a bailout package for the ailing manufacturing sector.


• A lower Canadian dollar – hovering at 85 cents American – may provide a much–needed boost to manufacturing.


• Job employment rates continue to hold steady in the GTA, despite upward momentum at the provincial level. The unemployment rate was 6.8 per cent in October, down from 6.9 per cent in September.


• Population in the GTA continues to grow through migration, with 60,000 plus households expected to form in 2009.


• Last, but not least, we must remember that the Greater Toronto Area generates about 10 per cent of the country’s total wealth – that’s comparable to what New York, Chicago, Boston, and San Francisco make to the US economy. There’s no question that we are a world–class city – in a have–not province.

We may be in for some challenges over the next six to nine month period, but we should see clear signs of recovery by late 2009. The good news is that lifecycle events will continue to occur, whether real estate is experiencing a bull or bear market.

I am recalling the President Elect Obama's comments on CNN news last night. When the last depression occurred the economy was in excess of 30 % unemployment. We are currently at 6%!

Assumable Mortgages as Marketing Tools

With Toronto Real Estate softening and the prices showing signs of adjustment; It might be worthwhile to look at homes for sale that have an existing mortgage that could be assumed, as a marketing tool to get your home sold.

Consider interest rates; they have not increased dramatically in the short term but could and I believe will rise in light of global borrowing as the need to attract investors for bonds and certificates in financial markets becomes interest rate sensitive.



Mortgagors on a property most suitable for this kind of program are already high ratio and have paid the CMHC Insurance fees. (previously added to the mortgage balance) If this mortgage is assumed the NEW borrower is paying CASH to the existing mortgage. They would be required to qualify for the debt at the current rates, credit criteria and guidelines. An additional property appraisal may be required.

Simply put, on a 300K assumption this could be a savings of $8,000, or on a 400K mortgage could be $11,000. CMHC Ratio fees range from 0.65 to 2.75% on a graduated scale based on the level of advance to value.

Briefly, one of the first things to consider is the terms and conditions as contained within the specific mortgage document.Most mortgage documents, although similar in nature are not always identical and even when the terms of a particular mortgage referred to as the mortgages “Standard Charge Terms” is registered with the Ontario Government and assigned a registration number, does not ensure that the lender in question has not attached an Addendum and/or a Schedule to a particular mortgage document thereby amending the “Standard Charge Terms” as was originally recorded.Therefore, prior to making any commitment, a person would be well advised to have the specific mortgage document in question, reviewed by a lawyer familiar with mortgage documents.Today most mortgage documents contain an escalation clause whereby, the full balance of the mortgage becomes due and payable forthwith, should the mortgagor default on any of the terms of the mortgage. The right of the mortgagor / borrower to exercise any or his or her rights as may be contained in said mortgage, begin with the premise “when not in default, the mortgagor may ....”

A significant number of mortgage documents as prepared on behalf of either institutional lenders and/or private lenders do not permit the assignment of their mortgage. Those institutional lenders and/or private lenders that did permit an assignment of their mortgage, would only consent to the assignment or their mortgage, provided the new mortgagor was creditworthy and financially approved by the lender.

Further, such lenders would not release the original borrower (Mortgagor / Chargor) from liability for the debt. Therefore, in the event of a default by the assignee (new borrower) the lender had the option of choosing which of the two parties to pursue (original mortgagor or the assignee) for the repayment of the debt and usually the lender chose to pursue the most financially able of the two parties.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the information herein and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information.

Housing beginning to feel global chill

It's going to get worst before it gets better. That's the message from industry leaders gathered on a conference call Thursday to discuss the state of Canada's housing market over the next year.

Canada's entire real-estate market - from home building to new and existing sales and, not least, home prices - is beginning to feel the downdraft of a global liquidity crisis between banks.

The good news is that they say the national market is in far better shape than its American counterpart and it's already moving to correct itself.

"The market is realigning and we don't see that there will be a housing market bust in Canada like we're seeing in the United States," said Gregory Klump, chief economist at the Canadian Real Estate Association.

"Rather, we're going from a rather strong seller's market to more balanced market conditions."
Calming words, but of little comfort to homeowners that witnessed national prices fall the fastest in 12 years in August and are in for a similar blow when Ottawa-based CREA delivers September's data next week, according to Mr. Klump.

Still, there's a point to be made of Canada's position vis-a-vis the United States, where there have been unprecedented foreclosure rates in some states stemming from subprime mortgages, still estimated to represent 18% of outstanding mortgages in the United States.

Here, Mr. Klump said that while torrid growth remains in a few markets in Western Canada, nationally prices will continue in a downward trend until the "second half of next year. With sales declining as well as listings declining, [prices] will stabilize."

Home building, too, is poised to decline, according to Derek Holt, vice-president of economics at Scotia Capital. Despite a robust showing of 217,000 annualized construction starts on new homes last month, the rate of permits is falling to well below that level for coming months and next year.

Mr. Holt contends the annualized rate for 2009 will slow to about 180,000 as home builders scale back.

Indeed, there was marked concern over the threat that the widening financial crisis poses.
Inter-bank lending is quickly seizing up, and no matter how strong Canadian lenders' balance sheets are, the drying up of international lending is anathema to domestic recovery.

"That worries us, to be frank," said Mr. Holt. "Bankers are worrying about the fragile state of the global financial system and that is absolutely for every consumer and business borrower across the world ... going to tighten access to credit on tighter terms."

Credit conditions for mortgage borrowers are already beginning to come under strain. Despite a cut of half a percentage point by the Bank of Canada on Tuesday, Canadian banks shed only a quarter of a point, citing their own elevated costs of borrowing in open markets.

Rates on variable mortgages have also been raised in recent weeks. Will it mean Canadians looking for a mortgage will be shut out?

"For the vast majority, no," said Jim Murphy, chief executive of the Canadian Association of Accredited Mortgage Professionals. "There's always issues for those who may not have the credit score or have debts ... [but] for people that qualify, no."

David Pylyp; No matter the source, or detail of the information of the reports that housing is safe in Canada, people will hesitate to make sure, for their own comfort and proceed with caution. Prices in Ontario and Toronto specifically has declined a very modest 3% over last years high.

The stock market has adjusted the value of many buyer's downpayment pool and they need to reevaluate the choices available. Steven Harper has already stated that the Banks in Canada are not in jeopardy, do not need a bail out and will not require one.

The issue of the US bailout looms on the horizion but is a larger issue as the policies implimented may not truly be felt until a new President is in office in January 2009.

There is a lot of blame to go around. What the market needs is confidence. Real reasons to sell and buy a home, the marriage, the extra family member and downsizing are coming to the fore.

Market Watch Report October 08

GTA Resale Housing Price and Sales Measured in September

October 3, 2008 -- TREB Members reported 6,424 sales of single family dwellings in September, down about six per cent from the 6,866 sales recorded during September of last year, Toronto Real Estate Board President Maureen O'Neill announced today.

However, the 6,424 sales reported for September 2008 is down just three per cent from the 6,622 figure recorded in September 2006. To keep in perspective, September 2007's 6,866 sales was the second best figure ever recorded for that month.

The overall transaction figure for September masks significant regional differences. Within the City of Toronto sales registered 2,546, down 11 per cent from the 2,854 figure recorded in September of 2007 but down five per cent from the 2,680 recorded during the same month in 2006. In the 905 suburbs, the 3,878 sales that went through TorontoMLS were down three per cent from last year's 4,012 sales, and down two per cent over the 2006 total of 3,942 sales.

Overall, GTA prices declined three per cent from their year-ago levels to an average of $368,549 from the September 2007 figure of $380,132. As with sales, the GTA's regions fared quite differently on average price during the month. The average within The City of Toronto, at $393,647, fell six per cent from September 2007's $420,182 but rose six per cent from the $371,682 recorded in the same month of 2006. Meanwhile prices in the 905 districts, at $352,071, rose marginally from the $351,641 recorded in 2007, and was up five per cent from 2006 September figure of $333,818.

Breaking down the total, 2,539 sales were reported in TREB’s 28 West districts and averaged $352,249; 1,067 sales were reported in the 14 Central districts and averaged $464,397; 1,220 sales were reported in the 23 North districts and averaged $407,424; and 1,598 sales were reported in TREB’s 21 East districts and averaged $300,772.

Complete Details Available here

The RE/MAX Sales Report also revealed a few interesting items, in that Mississauga has overtaken Toronto in the over Million Dollar sale of homes category. Email me to request a copy of this report.

Landlord Tenant Comment Toronto Sun

Small landlords will pay the price
Re "Not right at home" (July 9):

The release of the long-awaited report on human rights in housing was remarkable but predictable given the author, the Ontario Human Rights Commission. The commission's report was based primarily on anecdotal evidence provided by poverty groups, legal clinics, and tenant advocacy groups along with input from landlords, government agencies, etc. In their recommendations the commission ignored all input by the landlord groups that would not advance its cause.

Those interested in the future of housing should read the report fully and in particular the recommendations in part 6. A main objective of the consultation seems to have been to produce a report that has Ontario declare housing as a universal human right. In the secondary housing market, small landlords can look forward to a regime that includes no right to do criminal background, credit or tenancy checks, no right to take rent deposits, mandatory expensive modification to rental units, no limit to the number of guests or occupants who can live in the unit, mandatory certification programs, and a requirement that every landlord, big and small, accommodate a tenant's disability to the point of undue hardship prior to attempting to evict a tenant.

While the words sound noble, in the area of human rights in an employment context, the courts have held that the point of undue hardship was that point just shy of insolvency. The commission report also recommends that the Ministry of Municipal Affairs and Housing re-examine the issue of vacancy de-control with an eye to scrapping it and bringing in rent control which would be extended to vacant units to replace the system now in place where landlords and tenants can freely negotiate rent for a new tenancy. This approach has been rejected by both the Conservative and Liberal governments to this point.

How this new world of housing, where small landlords renting out their basements are turned into social workers and become funding partners, can bring about positive change is beyond most in the industry.

The real issue here is that the government, using the Human Rights Commission as its shill, is being disingenuous. If the government wished to make housing a universal human right and pay the cost of providing low-income and affordable housing to achieve that goal, then that should be a ballot question.

Instead, the government, through the commission, has found a way to make landlords responsible for providing this proposed universal right. If it comes to pass, this will surely decimate the industry and result in fewer units for tenants in need.

Harry Fine President Landlord Solutions Harry Fine, a former adjudicator with the Ontario Rental Housing Tribunal up until November 2004, Landlord Solutions can provide you with the edge that only a former adjudicator can provide.

Respected as one of the Tribunal's top Members, Harry knows the law as well as the process, and is committed to providingyour company with the best in paralegal representation both
at the Tribunal and in Small Claims Court.

GTA Resale Housing Continues Steady Pace

June 18, 2008 -- The Greater Toronto Area (GTA) resale housing market continued at a moderate but healthy pace throughout the first half of June, Toronto Real Estate Board President Maureen O’Neill announced today.

Prices continued their upward trend in the first half of this month. The GTA average price is currently $398,542, up four per cent over the $384,576 average from the same timeframe a year ago and up 11 per cent from the $358,648 recorded at mid-June 2006.

In the City of Toronto the current average price is $439,469, up three per cent over the $424,888 average a year ago and up 14 per cent over the $386,960 average in the first half of June 2006.

In the 905 Region the average price is $371,686 up four per cent from the $357,359 average a year ago and up 10 per cent from the $338,578 recorded at mid-June 2006.

“With 4,374 transactions in the first two weeks of this month, sales in the GTA declined 14 per cent compared to the same timeframe a year ago when 5,074 properties were sold,” said Ms. O’Neill. “However, compared to the first half of June 2006 when 4,074 properties changed hands, this month’s activity is up seven per cent.

In the City of Toronto 1,733 sales took place to mid-June 2008. This represents a 15 per cent decrease compared to the 2,045 properties sold a year ago but a two per cent increase over the 1,690 transactions in the first half of June 2006. A different story emerges when you compare the first half of June 2007 before the Toronto Land Transfer Tax went into effect to the same period in June 2006, a period showing a 21 per cent increase in sales.

In the 905 Region, the scenario was similar. In the first two weeks of June, 2,641 properties were sold. This represents a 13 per cent decline compared to the 3,029 homes sold in the first half of June 2007 but an 11 percent increase over the 2,384 properties sold at mid-June 2006. When you compare the first half of June 2007 to the same period in June 2006, sales increased by 27 per cent.

Certain communities including Riverdale, West Agincourt, Caledon and Richmond Hill South experienced strong activity in the first half of this month.

In Riverdale (E01) transactions increased 28 per cent compared to the first half of June 2007 driven by strong condominium apartment sales.

Condominium apartment transactions also drove West Agincourt (E05) to a 24 per cent increase in sales compared to the same timeframe a year ago.

In Caledon (W28) detached home transactions lead to a nine per cent increase in sales over the same period a year ago.

Richmond Hill South (N03) also experienced strong detached home sales, which resulted in a five per cent increase from mid-June 2007.
“With employment and interest rates holding steady and a 17 per cent increase in available listings compared to a year ago, it is an ideal time to take advantage of all that the market has to offer,” said Ms. O’Neill.

MLS smacks down maverick website

It was an antidote to Toronto's sprawling housing market: a simple website created by two self-described "computer geeks" to ease their first home search, and then help a city of frazzled buyers.

That is until this week, when the Multiple Listings Service - the reigning king of online listings in Canada - unleashed its lawyer on housing123.com and banished the new kids on the block.

"It was always this overhanging axe that was ready to fall," said Travis Fielding, the 31-year-old co-founder of the website, which allowed users to search MLS listings plotted on a Google map of local neighbourhoods.

After all, MLS has crushed upstarts before. Two Toronto-based sites, Realtysellers Ltd. and Realestateplus.ca, shut down in the past two years after run-ins with the Canadian Real Estate Association, which owns the MLS trademark. Housing123.com is accused of using its information without permission.

But some industry watchers say MLS may be losing this online turf war, as what's happening in the United States may soon happen here: Sites such as Redfin, Zillow and Yahoo Real Estate now carry the lion's share of new listings, while MLS is losing ground.

They say the MLS business model - giving people only a taste of a house and directing them to an agent for more - won't stand up against competitors that will give you every detail about a house and its surroundings, including local crime stats, school reviews and previous purchase prices, along with 360 tours and a break on the commission.

"They're basically saying, 'You know what? People want to search listings themselves,' " says John Pasalis, founder of Realosophy.com, a website that dishes details about Toronto and Greater Toronto Area neighbourhoods. "The problem in Canada is we can't do this because the real-estate boards don't allow us."

Adds Mr. Fielding: "I think they're stuck in the past."

The idea for housing123.com bloomed a couple of years ago after Mr. Fielding's friend and fellow software developer, Kevin Lai, became frustrated with his own home search. Sick of navigating MLS, and frustrated by an agent who missed good houses, Mr. Lai thought he could design a better system.

On his laptop, he basically created what is known as a "Google-map mash-up," which allows people to plot customized data (in this case, MLS listings) on top of a Google map application.
It worked so well that, just for kicks, he enlisted Mr. Fielding to help him take it to the public. It took about three weeks to work out the kinks, and they developed a way for the program to automatically add new listings. "On a scale of 10, it's probably like six," Mr. Lai, 29, says of the difficulty level. For their day jobs, he and Mr. Fielding design software for financial companies.
Since the site was launched 10 months ago, it averaged about 400 to 500 unique users per day, Mr. Fielding says.

Users appreciated its simplicity. House listings appeared as dots on a map of Toronto, which users clicked on to take them to the MLS listing. Houses were colour-coded by price so users could see which areas were pricey or affordable.

By contrast, MLS has no way to narrow a search to a neighbourhood. If you're looking for a Victorian in Kensington Market, you have to search in zone C-01, which covers Yonge to Dufferin, and Bloor to the Lakefront. (That includes the Annex, the waterfront, Kensington, Little Italy, Trinity-Bellwoods, University, the downtown core, and others.)

The search engine spits out hundreds of listings, and users are stuck flipping between MLS and Mapquest.

Still, the housing123.com founders knew it would just be a matter of time before MLS came knocking, because they were using listings that were the property of MLS.ca.

Last week, Mr. Lai received a letter from a CREA lawyer saying they had violated copyright laws. Remove the site, it said, or we'll sue. "They were scraping data from our website," says Calvin Lindberg, president of CREA, which represents more than 94,000 brokers and agents. "It's something that we deal with on a regular basis. ... Obviously whenever we see it happening, we send a letter asking them to turn it off."

Since the site folded on June 15, dozens of users have voiced their dismay on a blog, urging the duo to keep going or seek legal advice. One user wrote: "MLS is brutal and your site made finding the right place in the RIGHT location a breeze."

By the end of the summer, MLS.ca will have a map component, Mr. Lindberg says. Beyond that, he says, the site does not need to be improved. "We've created a very effective and efficient system that the consumers love."

Others disagree. One simply has to look south to see the potential for informative sites, Mr. Pasalis says. Those sites, however, have only been made possible through tough legal battles. In May, the U.S. National Association of Realtors settled its antitrust case with the Department of Justice, giving online realtors - which have been offering fees that are significantly lower than traditional realtor rates - full access to the MLS database.

Mr. Pasalis says the onus should be on Canada's Competition Bureau, not individual entrepreneurs, to fight to ensure fair competition is allowed in Canada too.

For now, Mr. Lai and Mr. Fielding say they are dreaming up new projects. "At least we helped a lot of people find their dream home," said Mr. Lai, who is now in the market for a downtown condo.
The pair say they may revive their site, but only to post properties from individual sellers or brokers - not MLS. "We can't afford the lawsuit, that's for sure," Mr. Fielding says.
Days after his site folded, Mr. Lai and his wife bid on a downtown condo they had spotted using housing123.com - but no dice. His search has resumed on MLS.ca.

HAYLEY MICK June 21, 2008 The Globe and Mail

Study Finds Acceptance of Sustainable Housing Forms

June 18, 2008
Study Finds Acceptance of Sustainable Housing Forms
A unique study has found a high degree of flexibility in what residents in the Greater Toronto Area would or could accept as their type of residence. The results suggest a much greater opportunity for suburban municipalities to accommodate new urban growth in a compact and sustainable manner, according to a new study by the Sustainable Urban Development Association (SUDA).

SUDA, in collaboration with the Department of Urban and Regional Planning at Ryerson University, released The Housing Alternatives Acceptability Study (HAAS) about the acceptability of a variety of housing choices. In particular, the study found a relatively high level of acceptance of compact housing forms such as townhouses and condominium apartments. Among some of the findings:

· About half of respondents considered living in a townhouse as "acceptable" or "may be acceptable". Higher levels of acceptability were found for townhouses with large private backyards compared to townhouses without.
· Slightly more than half of respondents would accept or may accept living in a semidetached home.
· Almost three quarters would accept or may accept living in a medium-value single detached home.
· Only 32% of respondents considered owning a single-or semi-detached home as a "must have".
· 51.6% of respondents would accept or could accept living in a large condominium
apartment; this percentage held true for all household sizes. Acceptability was strong for both respondents living in Toronto, and for those in other GTA municipalities.
· Low-rise apartment living is preferred to high-rise living by a wide margin.

Because growth in municipalities in the region will be largely by immigration and intra-regional migration, these findings, based on GTA-wide responses, are appropriate for decision-makers throughout the region to consider as they plan for the housing mix in their communities. “These findings open the door to more opportunities for accommodating growth with less reliance on single detached housing as the predominant housing form,” said John Banka, President of SUDA.

“The Greater Toronto Area is growing by close to 100,000 new residents per year. The region cannot afford to continue with business as usual, or with policies and plans that assume "demand" for sprawling subdivisions,” said Banka.

“People buy what’s available, and public decision-makers determine what that will be,” said Banka. “Public officials determine the degree to which growth will add to car-dependent congestion, greenhouse gas emissions, the excessive loss of natural and agricultural land, and exposure to the coming global energy crunch.”

The study also asked about the importance of owning a single detached home. 32% said it is a "must have". The study did not investigate whether this was because the market did not offer other options such as townhouses with backyards, or extra large condominium apartments with facilities for kids. "If the only options you see for your family is a narrow townhouse with no yard, you may be inclined to say ‘must have’ to other choices that are available."

The HAAS also asked questions about the importance of investing in better public transit. 82% of respondents stated that public transit in their area needed some improvement or a great dealof improvement. Moreover, 68% of respondents are willing to pay additional money in order to improve public transit services.

“This is an important finding, as it demonstrates a high level of awareness about the importance of public transit to people. If our cities and towns are to move towards sustainability, transit services must be significantly enhanced, and the willingness of the public to pay for improvements should send a positive message to decision-makers who are struggling with finding money for transit expansion,” said Banka.
Other findings related to housing choices and community:

· An overwhelming 90% of respondents said a healthy and natural environment was either very important or a "must-have".
· 68% said that being able to walk to their daily destinations is either very important or a must-have. “This suggests a great potential for changing the design of new communities to bring employment, shops and services much closer to where people live,” said Banka. “It speaks to the growing need to reduce our dependence on travel by automobile.”
· 32.4% of respondents were concerned enough about energy prices that it would affect their choice of housing ‘very much’. "It is likely that these percentages are even higher today, given that the survey was undertaken in the summer of 2007, when oil and gas prices were significantly lower than they are today," said Banka. "SUDA believes that the combined impacts of future energy costs and energy's detrimental impact on the environment will increase the demand for energy-efficient housing forms such as apartments and attached homes."

Principal investigators of the study were John Stillich, General Manager at SUDA, and Associate Professor Sandeep Kumar Agrawal of the Department of Urban and Regional Planning at Ryerson University.

For more information, call John Stillich at 416-400-0553. The entire study is available by clicking here

Sustainable Urban Development Association SUDA
2637 Council Ring Road, Mississauga, Ontario L5L 1S6
Tel: 416-400-0553; Fax: 905-820-8156; www.suda.ca; e-mail: contact@suda.ca