Lack of Listings forces prices up

The continuing lack of available home for sale is out of balance to for a city that is our size, Toronto. With fewer available units (homes) for immediate occupancy prices are being forced ever higher.

The strongest demand appears to be in the First Time Buyer starter Homes.

If you are considering a sale I need to meet with you. If you would like a value for you r home to consider for the spring of 2010 click here.

You will get TOP dollar for your home immediately.

Budget Highlites for Real Estate Toronto

Here are some key points mentioned in todays budget that will help us in our industry.

Canada's Mortgage Industry Welcomes Federal Budget Announcements

Earlier today, federal Finance Minister Jim Flaherty tabled the federal budget. Several measures affect Canada's housing and mortgage industry.

Temporary home renovations tax credit of up to $1,350 for eligible home renovations and alterations.

Increase in the home buyers RSP plan, withdrawal limit increased to $25,000 from the current $20,000

A new first time home buyers tax credit that will provide up to $750 in tax relief for closing costs. They're giving first time home buyers tax breaks designed to deal with added expenses like legal fees and - in what's certainly a message to Mayor David Miller - land transfer taxes. Those buying an abode will get a 15 per cent tax credit on up to $5,000 in costs.

Broad based personal tax reductions including an increase in the personal exemption and increases to the limits for the two lowest tax brackets.

Complete Budget details

Vivien Lai, AMP Mortgage Specialist Mortgage Alliance Real-T-Mortgages
Tel:(416)816-8252 Fax:(905)272-3833 vlai@tmacc.com
www.mortgagealliance.ca/vivienlai

Sales Numbers Down! But activity has dropped significantly

Over 3,600 Sales In November

December 4, 2008 -- TREB Members recorded 3,640 sales in November 2008 from the 7,313 sales recorded during the same period last year in the GTA, TREB President Maureen O’Neill announced today.

The average GTA price in November 2008 was $368,582. During the same period last year, the TorontoMLS system recorded an average of $393,747, and in November of 2006 overall GTA prices averaged $355,727.

The 2008 year-to-date sales for the GTA was recorded at 72,086 from last year’s 88,695. The year-to-date GTA average price was $379,489 from last year’s $375,445

Within the 416 area (City of Toronto) there were 1,523 sales during November 2008. During the same month last year, 3,426 sales were recorded. The average price in the 416 area was $390,225 compared to $433,859 in November 2007 and $381,188 in 2006.

In the City of Toronto, 28,806 sales have been recorded year-to-date for 2008 from last year’s 36,804 during the same time period. The year-to-date 2008 average price in the 416 area is $411,155 from last year’s $411,640.

The 905 Region recorded 2,117 sales last month, compared to the 3,887 sales transacted during November of 2007. The average price in the 905 Region was $353,012 last month from $358,391 in November of 2007 and $335,522 in November 2006.

Year-to-date sales in the 905 Region for 2008 were 43,280 from the 51,891 recorded during the same period in 2007. The year-to-date average price in the 905 Region for 2008 was $359,245 from $349,774 in 2007.

Breaking down the total, 1,453 sales were reported in TREB’s 28 West districts and averaged $350,199; 629 sales were reported in the 14 Central districts and averaged $473,346; 651 sales were reported in the 23 North districts and averaged $410,253; and 907 sales were reported in TREB’s 21 East districts and averaged $295,470.

Median Price

The Median Price for November 2008 was $312,250, compared to $325,000 in November of 2007 and $298,000 in 2006. The YTD Median for the first 11 months of 2008 was $325,000, compared to $318,000 during the same time-frame in 2007, and $300,000 in 2006.

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David Pylyp There IS a silver lining. With all this indecision and doubt, the resale values are holding within a single digit change from last year and still ahead of 2006 for values. Not quite the end of the world that is MEDIA frenzied. So.... would you rather risk, for example $ 8,000 on having an incredible selection of homes? Find an assumable mortgage and save the same $8,000 back? Maybe you have a closing and are short a few thousand. Contact Me.

Consult a professional REALTOR to help you sell your home. Experience is not expensive, Its Priceless.

Asbestos Removal a Homeowner’s Priority

When purchasing or remodeling a home or building, there are many variables to consider. Homes which were built prior to 1980 have a strong likelihood of containing asbestos materials. With a steady progression of green sustainable methods of building and technology, there are many different ways to make sure your property is free of this corrosive material. If you are interested in saving money, remodeling and improving your carbon footprint, here is some information to get you on the right track.

Due to asbestos being used as a main material in building insulation throughout the twentieth century, it is important to take the proper removal methods to make sure these toxic materials are out of harm’s way. Damaged asbestos can produce diseases such as Peritoneal Mesothelioma, Pericardial Mesothelioma and various lung illnesses. Recent studies indicate that over 2,000 to 3,000 cases are diagnosed every year in the United States alone.

If you maintain residence in the Markland woods, Princess Gardens, Islington Heights or Central Etobicoke areas or a home in the Toronto GTA, companies such as Environmental Services Group (ESG) in Toronto can assess survey and remove asbestos with their qualified asbestos abatement professionals. With a professional staff, ESG can help determine if you have asbestos and assist you in determining the most logical method of managing the problem- disposal or removal.

Once the removal is complete, green insulation options should be given serious consideration, such as: Cellulose, Cotton Fiber and Lcynene. Cotton fiber is made from recycled batted material and treated to be fireproof. A water based spray polyurethane foam, Lcynene features no toxic components. In addition, most people are unaware to the fact that these eco-friendly products can cut energy costs per household by 35 % per year.

Not only will asbestos removal make for a healthier, more vibrant home, it can save you money. The United Nations Environmental Program states that usage of recycled materials such as green insulation methods and lighting can reduce energy use by 25 to 25 percent! Removing asbestos by a licensed professional is worth the expense and time.

Will this year be OWE 8 for Toronto Real Estate?

We are bombarded with information and headines, they are not necessarily reflective of the real facts. A TEASER ad that ran on the CTV National News talked about the 39% drop in real estate in the Toronto Market.

BUT... the drop was in sales activity, not the prices in that same year over year period.

While materially correct, this follows on the heels of the stockmarket adjustments that happened in October. With a Canadian and American election within weeks of each other, everyone held their collective breath.

Lets examine the individual statistics.

The Greater Toronto Area resale housing market reported 5,155 sales in October, Toronto Real Estate Board President Maureen O’Neill announced today.This represents a 35 per cent decline from the 7,915 sales reported in October 2007 and a 25 per cent decrease from the 6,876 transactions that took place during the same period two years ago. The article continues with... In the City of Toronto, the current average price of a home is $376,896, down 13 per cent from. Complete details available here.

What about the Canadian Real Estate Association for the same time period. What are they comparing? Their stats give the average sale for September 08 as $368,945 as compared to September 07 at $380,132. The real number here is an average decline of 3.15% year over year.

Are we alone?

I looked for source for Vancouver Real Estate information and found that their market is even more volitile than the local Toronto market. Their BOOM Market has been fed with construction for the Olympics.

"Residential benchmark prices, as calculated by the MLSLink Housing Price Index, declined 8.8% between May and October 2008, resulting in a 3.9% year to date price reduction for detached, attached and apartment properties in Greater Vancouver between October 2007 and 2008. In May 2008 the overall residential benchmark price was $568,411, compared to $518,668 in October 2008."

”Home sales are not keeping pace with the positive economic conditions in BC”, said REBGV president Dave Watt.” That’s a direct result of a loss of consumer confidence in the overall market. Accordingly, today’s housing market is characterized by moderating home prices and wide selection. It’s definitely a buyer’s market.

Residential property sales in Greater Vancouver declined 55% in October’08 to 1,364 from 3,028 sales recorded in October’07.

I whole heartedly agree with the President of the Vancouver Real Estate Board, in believing that we have moved firmly into a Buyers Market.

The inventory supply (number of listings) available in Toronto has not skyrocketed into the stratosphere, and although the pundits do profess it is still a safe time to buy, the hesitation created by FUD is tangible.

This last weekend while open housing, I noticed a refreshing sense of cautious optimism that was not visible in October. Maybe I'm just a glass half full person.

Your comments are always invited. If you are considering buying or selling in the next few months, I would be pleased to meet and discuss your situation.

Neighbourhood Profile - The Junction

Up Coming Neighbourhoods

Last night I had the pleasure to attend the Junction Residents Association bi monthly meeting. This is relatively new group that has formed in the Junction Triangle of West Toronto in addition to the Local BIA (Business Improvement Association).

This meeting was organized, orderly, enthusiastic and informative. Held at the grass roots level of homeowners, the group is focused on their own neighbourhood issues that deal with parking, continued expansion (future development) Parks and playgrounds, shrinking school funding and boundary issues. They had considered their target audience well, in that they had provided a staff of five for child care during the meeting and served a lovely refreshment station for those needing a bite after work.

The group quickly identified those with specific skills, experience and connections to; develop Historic Building Status for certain properties with the neighbourhood, support and a voice at Queens Park was provided by Cheri DiNovo MPP Parkdale High Park.

In the never ending world of Rules and Regulations, a surprising voice appeared from the audience, with the attendance of the President of the Bloor West Village Residents Association, Greg Hamara, that offered experiences drawn from the (BWVRA) in drafting bylaws, and an invitation to work jointly with other groups that share a common goal.

The West End of Toronto resident associations encompass a number of smaller groups that are unifying under programs that apply to all of them, and are joining their efforts where applicable. I was delighted to learn that the Swansea Residents Group and Roncesvalles-MacDonnell were also included.

The conclusion and observation to this, is the unification and focus of groups, at the local level attracting guest speakers of profile, Local Politicians for their all candidate debates and a well needed concern to have their neighbourhood voice heard in a large evolving multi-cultural mosaic that is Toronto.

Kudos to the Junction Residents Association for their efforts.

So this is your second home buying experience....

As a homeowner for a few years now, you have had the time to evaluate the choices that you made as a first time buyer. Now you’re looking at the market, you realize that you can get substantially more for your home and yet slip into something more comfortable for a few dollars more per month. What can you expect as a second time buyer?

Your biggest advantage is that you have a greater sense of confidence in sailing your way thru a home purchase. Having had the experience with the lawyers, agents, inspectors, bankers and movers, you know what to expect from most of the people involved. This must make your decision all the easier to make.

Many First Time Buyers made their choice in haste, or perhaps their family situation soon had additions just after the move, or the available space is just too large or too small for the original criteria. Has your job moved?

In the event of a market miss-step, I do offer a You will Love It Guarantee if you are unhappy with your choice.

As a Second time Buyer, you now have different concerns; Do you sell first and then scurry to buy anything that fits, or Do we buy first and the feel the pressure of needing to sell? Buying before selling may require you to carry two properties. If you sold first, you may be living with your in-laws yet again or seeking alternative accommodation.

With a softening market climate, it is more important than ever (in the last 14 years since the last slowdown) to find professional real estate representation that will protect your interests and point out the potential pitfalls to even the best made plans. There may be changes in disclosures and procedures since your last purchase; Passing your home inspection, FINTRACC, Will you provide a SPIS, or penalties on changed financing.

Internet Advertising is now critical to expose your property to the largest buyer pool via every method possible in addition to sites like Realtor.ca. IMPACT advertising will showcase your home in email capable presentations.

There are listings that are currently shown sold, displaying the phrase conditional upon the sale of the purchaser’s property. This is a tactic that was used for years in different markets that has fallen out of favour. Maybe you would like to start looking at homes with that option in your toolbox of available choices. Sellers may in this market consider holding your condition as a suitable offer on their home. Check the Market Watch report for your neighbourhood.

Take advantage of my 19 years of real estate experience and intimate knowledge of the west Toronto and Etobicoke home market to assure a smooth bump free and stress free purchase and sale.

Markland Wood Community Profile

Let’s take a closer look at Markland Wood in Etobicoke

This is a wonderful upscale mature neighbourhood that was built out in 1962 – ’63 containing prestigious homes and ravine properties bordering the Etobicoke / Toronto boundary approaching Mississauga.

With the total number of residences being 1,200, a normal balanced market should see an aggregate of 3.8 to 4.2 % of residences sold in any one year period. This should translate into a gross number of units for sale/sold at 45 to 60 units traded in any particular calendar year, for a mature neighbourhood of over 25 years in age.

The sales in Markland Wood over the last 12 month period are only showing 28 units having sold thru the Toronto MLS System. This leaves the remaining number of units sold on an average basis well below what would be considered the statistical norm, yet I see people discussing the fact that the asking prices of the homes need to adjust their asking prices based on value.

Smaller homes, on higher vehicular traffic streets are trading in the current market in the range of $540K to the soft $ 600K’s. Larger detached homes, both two storey, sidesplit and backsplits are ranging into the high $ 700 K range with ravine properties firmly in the million dollar plus range. Last Sales data is available with site sign in.

A further specific examination of the sales data within the last 30 day period reveals 6 homes currently available for sale and only two sold. The hesitation would seem to be directly related to the credit mortgage markets news that we are reveling in this month.

I see a direct relationship in the pricing of the homes relative to the neighbourhood demand and then a further examination of house to house to ascertain individual worth. Markland Wood is holding up better than most in these potentially uncertain times. This leads us to draw a few different conclusions. Pricing will not decrease as the supply is verifiably limited. Buyers continue to buy, albeit, currently hesitant.

There are tangible neighbourhood premiums that will continue to apply to a subdivision like Markland Wood.

Are you an Owner? If you own a home in this neighbourhood and you would like to sell your home, click here and get a free value analysis. If you are a Buyer, I would be pleased to emailyou the lastest posted available homes.

If you would like to comment on this post please feel free to do so. I am also seeking residents of the neighbourhood to kick start our own blogging forum about the benefits of living in Markland Wood.

Property Assessment Notices are in the Mail

City of Toronto property taxpayers will see an average assessment increase of approximately 5.4 per cent in 2009 as a resultof the four-year phase-in of assessment increases introduced by the ProvincialGovernment.

"Residential property values have increased by approximately 22 per cent in the City of Toronto since 2005, when the last assessment update was done. Because of the four-year phase-in introduced by the Provincial Government,property taxpayers here will see an average assessment increase ofapproximately 5.4 per cent next year," said Joe Regina, Account Manager, Municipal Relations, in the Toronto office of the Municipal PropertyAssessment Corporation (MPAC).

An increase in assessment does not necessarily mean an increase inproperty taxes. If the assessed value of a home has increased by the samepercentage as the average in the municipality, there might be no increase inthe property taxes paid by a property owner.

Property Assessment Notices in the mail to 668,000 property owners in the City of Toronto in first assessment update since 2005.

If you feel that the assessment is excessive, you can appeal this yourself. William Tatsiou, former member of the Assessment Review Board and solicitor posts; How to successfully appeal your assessment and reduce your taxes without a lawyer. For residential appeals.

The Toronto Times published a point by point summary of the steps and details required.

There is, it might seem a municipal conspiracy against real estate in Toronto. In 2008 we have seen the introduction of the Toronto Land Transfer Tax, proposed increases to developments charges ( lot Levy) of in the range of 122% effectively doubling the levy costs of each new unit brought to market, and the release of MPAC to increase property values that were previously frozen for 5 years.

With a softening market in Toronto, the additional fees and surcharges are a direct impediment to new buyers and move up buyers in the Toronto GTA. This creates and opportunity for buyers to consider municipalities like Mississauga and Oakville for their housing needs.

I invite you to contact me with a comment or a shopping list of your housing needs.

Canada house price drop may be exaggerated, TD says

The drop in Canadian home prices in September may not be as severe as it seemed, TD Securities said on Wednesday, bolstering the case that the country is not headed for a U.S.-style housing meltdown.

TD, a unit of Toronto-Dominion Bank, argued in a report that home prices fell 1.3 percent in major Canadian markets in September, not the dramatic 6.2 percent drop that was reported by the Canadian Real Estate Association (CREA) last week.

CREA said the average house price fell to C$315,461 (about $252,000), dragged down by sales declines in Vancouver and Victoria, British Columbia, which offset rebounds in Calgary and Edmonton, Alberta. CREA said the fall came despite year-over-year gains in average home prices in 17 of 25 major Canadian markets.

TD crunched its own numbers and applied a weighting to each major city to fix "compositional shifts", which it said were behind the distorted CREA view. It said the association has acknowledged the problem.

For example, if Vancouver was the only city that reported sales in one month, and the next month Montreal was the only city that reported, then it might seem that prices had fallen in half because Montreal prices are much less expensive than those in Vancouver.

TD fixed the weight of each city to year-earlier sales levels as of September 2007.

"We wanted to get rid of the whole compositional issue. We really just controlled for the allocation. When we did that we ended up with a 1 percent drop instead of a 6 percent drop," said Eric Lascelles, chief economics and rates strategist at TD Securities.

"That's not catastrophically different, but to me that's a number that makes more sense. Yes the housing market is correcting moderately but it does not have the making of a U.S.-style correction."

He said Canadian housing starts may fall below the 200,000 mark, home prices will continue to correct in some inflated cities, but there is no need to brace for big delinquencies or a hard drop in prices.

The TD calculations aren't perfect, Lascelles acknowledged, because they do not eliminate some factors such as type and quality of home in each city.

Canadian housing data has shown signs of softness but nowhere near the slump that hit that United States, stemming from a crisis in the subprime mortgage sector.
Reporting by Ka Yan Ng; Editing by Peter Galloway Reuters Canada

David Pylyp; What an incredible range of opinions are out in the media, yet if you read the headlines only they say the sky is falling. People still need a place to live.

This TD report is a little reflective to specifics in the same fashion that I am, in that I study the sales reported on a daily basis and I have not perceived a viable drop in values. Offers seems to be off modestly by 1 or 2% from the prices of the spring market, so the conclusion could also be a seasonal adjustment. The number of active shoppers has declined and is reflected in the decline in the number of units sold ratios.