This blog is inspired by a great article published by the Toronto Star late last year...
We've all heard them at various cocktail parties or the minute you tell someone you're thinking of buying..."Buy the worst house on the best block!"
Here's a look at which real estate truisms are worth paying attention to and which are as fluffy as your down pillow.
Truism #1: Location, Location, Location
First, let's define 'location'. It can mean more than just the neighbourhood.
Some of the obvious location features of a home are always going to help home owners retain and increase value in both good markets and bad...being in a sought-after neighbourhood, proximity to downtown, access to highways, great schools, lakes etc.
If you can afford to get into the typically desirable areas such as Rosedale and Lawrence Park you are, of course, going to see steady increases in value. For those who are thinking towards the future, there are many indicators of a great 'future' location.
Let's take Leslieville and Riverdale for example. We've seen huge increases in values in those areas, even though years ago they were less than desireable and still have a long way to go. But look at the fundamental characteristics of those areas.
They are both close to the waterfront and main highways like the DVP and Gardiner. They offer great TTC access and are less than 15 minutes from downtown.
Look for areas where the 'early adopters' are hanging out, where the hot new restaurants seem to be opening, and if you can, get in before the first Starbucks opens! Case in point - Logan and Queen. Not a great area even a year ago and guess who just opened on the corner.
Also look at the edge of great neighbourhoods. The stretch from Woodbine to Coxwell was not considered to be part of 'The Beach' but now commands property values that are just as high, and you don't have to deal with the tourist traffic.
Other things to note when considering location...
You may be in a great area or up and coming area, but watch out for low-income housing (sorry folks, this is true), homes where the neighbour is a nasty parking lot or where you have great view of the back of those new restaurants who will be dumping garbage in their bins, the noisy TTC streetcar turn-arounds, train tracks etc.
Think about your buying area first, then consider the immediate radius around your future property.
Truism #2: Always Buy the Worst House on the Best Street
Fabulous idea if you have the funds to renovate. If done well and within budget, home owners can stand to make a great deal of equity or profit. It may also be the only way you can afford to get into the neighbourhood.
But watch out for fundamental property and building flaws that could make it a money pit. Or features than can not be rectified with a reasonable amount of money.
When it comes time to sell, you will only get as much as your home is worth, not how much the best house on the street is worth. If you have a 2 bedroom home and the biggest, best house is a 3 bedroom in similar condition, it will always get more money.
You also need to consider you own personal goals. Do you want to live in the worst house on the street? Or do you actually want to be in the best house? Are you buying for re-sale value in years to come or are you buying the right house for your family?
It all depends on what you are looking for.
Truism #3: Price To Sell
Of course you want to price to sell—but what’s the right price?
Some sellers deliberately price low or 'hold back' to encourage multiple bids with the hopes of getting a final offer over the asking price and possibly over market value. But your home has to be highly appealing and in a sought-after neighbourhood.
This means investing in professional staging and effective marketing. It also means being able to tolerate risk. Other sellers prefer to price in accordance with the highest sale on the block. They assume or think their home is comparable. Or they say, "Let's just put it on at $X price and see what happens" hoping they will luck-out.
But both routes are risky. Going too low in the hopes of sparking a bidding war can just as easily backfire, leaving the seller with offers that don’t exceed the too-low price, while pricing too high can mean you’ll just have to cut the price later.
The experts suggest…consulting the experts.
Have the house appraised by a realtor. They should provide you with a detailed Comparative Market Analysis that shows what other comparable homes in your area have sold for that. Then make a cold-eyed comparison: how does your house really stack up?
It also depends on your circumstances and those of the market. Have you already purchased another home and need to sell by a certain date? Or are you flexible and able to tolerate some risk? Is there very little supply in your neighbourhood or 'for sale' signs everywhere?
At the end of the day, your home is worth what the market is willing to pay. If you are not comfortable with 'holding back' for multiple offers then price as close to the current market comparables to get the best price for your home.
Know anyone who is looking to buy? Please forward this blog on!
info@markrichards.ca
(416) 728-2499
Regards,
Mark
Thursday, May 17, 2007
April 2007 Market Watch
Best Day Ever, Best Month Ever!
Did Toronto have home shopping fever or what?
The highest single day total of sales was on April 30th with 581 sales reported. Even more significant, April 2007 was the highest single month sales total ever reached - an astounding 9,452 sales! (that's 113% of April 2006).
And it looks like May is going to blow that number away with 5,003 sales reported during the first 15 days of this month.
So what does this mean for home owners and home buyers?
Year-to-date prices are rising steadily - nearly 5% over last year - with the average home in the GTA at $379,025. Values are increasing but buyers should not be waiting for the market to 'drop' to get into a home...you will be waiting a very long time, maybe forever!
The average time it took to sell a home fell to 28 days and the average sale price rose to 99% of the list price.
This is showing a lot of confidence in the market, and a lot of demand.
Looking to make a move or get into the market? Capitalize on your equity now or get into a position to start earning some.
As a city that is comparatively under-valued, real estate will continue to be a wise investment.
To find out what your home is worth, or to check out new listings, contact me at:
(416) 728-2499
info@markrichards.ca
Regards,
Mark
Neighbourhood Watch - April 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $629,591
Semi-detached: $467,974
Condo: $384,439
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $423,997
Semi-Detached: $410,992
Condo: $181,592
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $427,929
Semi-Detached: $397,596
Condo:$366,879
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $930,303
Semi-Detached: $555,609
Condo: $289,875
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,892,179
Semi-Detached: $547,000
Condo: $382,000
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $974,930
Semi-Detached: $451,153
Condo: $427,938
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,412,840
Semi-Detached: n/a
Condo: $504,625
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
Did Toronto have home shopping fever or what?
The highest single day total of sales was on April 30th with 581 sales reported. Even more significant, April 2007 was the highest single month sales total ever reached - an astounding 9,452 sales! (that's 113% of April 2006).
And it looks like May is going to blow that number away with 5,003 sales reported during the first 15 days of this month.
So what does this mean for home owners and home buyers?
Year-to-date prices are rising steadily - nearly 5% over last year - with the average home in the GTA at $379,025. Values are increasing but buyers should not be waiting for the market to 'drop' to get into a home...you will be waiting a very long time, maybe forever!
The average time it took to sell a home fell to 28 days and the average sale price rose to 99% of the list price.
This is showing a lot of confidence in the market, and a lot of demand.
Looking to make a move or get into the market? Capitalize on your equity now or get into a position to start earning some.
As a city that is comparatively under-valued, real estate will continue to be a wise investment.
To find out what your home is worth, or to check out new listings, contact me at:
(416) 728-2499
info@markrichards.ca
Regards,
Mark
Neighbourhood Watch - April 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $629,591
Semi-detached: $467,974
Condo: $384,439
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $423,997
Semi-Detached: $410,992
Condo: $181,592
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $427,929
Semi-Detached: $397,596
Condo:$366,879
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $930,303
Semi-Detached: $555,609
Condo: $289,875
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,892,179
Semi-Detached: $547,000
Condo: $382,000
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $974,930
Semi-Detached: $451,153
Condo: $427,938
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,412,840
Semi-Detached: n/a
Condo: $504,625
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
Monday, April 16, 2007
The Secret...and Your Home?
By now, most of you have heard of "The Secret". But what does it have to do with your home?
The Secret is based on the Law of Attraction - the belief that what you focus on will come to you.
If you have seen The Secret DVD, you may recall the story of one of the teachers, Dr. Assaraf.
Many years ago, he created a 'vision board' - a collage of pictures that represented the things he wanted in life, including the home he wanted to live in.
Over the years, he relocated and his vision board ended up in a storage for five years.
Finally, he and his family ended up in California, bought and renovated a place for a year and were getting settled in their new home. His son entered his office and noticed a few boxes sitting by the door and was curious about their contents.
Dr. Assaraf was trying to explain that his 'vision boards' were inside, and showed him the board he created five years prior.
He was shocked to see that the picture of the house he had put up so many years ago, wasn't just like the home they were in now. It was the SAME house.
He had bought his dream home and hadn't even realized it.
Why is this important? For a few reasons.
I've had different clients...ones who have a strong long term vision of the home they want and a plan to get it.
And then there are the ones who continually focus on the negative...they'll never get approved for a mortgage, they can't find a home they love, they don't deserve to live in a certain home etc...
There is a big difference between those clients. One ends up in a home that they love, the other never seems to get there.
You may have some limiting thoughts that you didn't even realize were happening!
My wife used to think that she didn't deserve to be in a great house until she reached a certain age or point in her life. That she somehow shouldn't have a home nicer than what her parents had at her age.
Now, I'm not suggesting you buy a home that you cannot afford. Focus on the process of getting to that home.
Here is a little bit of homework you can do to make your dream home a reality:
1. Describe your dream home in vivid detail...
- where is it located?
- what is the view like?
- how many bedrooms?
- how big is that plasma tv in the media room? (sorry, this was mine)
- is it full of character or contemporary in design?
2. Does this home exist?
If so, get a picture and put it up at your desk or on your fridge - somewhere you see on a daily basis.
3. Visualize.
I'm not suggesting you light up the incense and start humming with your legs in a pretzel (but please do so if this works for you). But take a moment to focus on visualizing yourself in this home and owning this home on a daily basis.
4. Eliminate all negative thoughts associated with your ability or likelihood to have this home one day.
Trust me, this does make a difference.
If you want to take the next step towards your dream home, contact me and my gift to you and anyone you refer to me will be a copy of 'The Secret' so you can learn more about it.
Now if you'll excuse me, I have to get back to attracting great clients and helping them find their perfect dream home. :)
Regards,
Mark
(416) 728-2499
The Secret is based on the Law of Attraction - the belief that what you focus on will come to you.
If you have seen The Secret DVD, you may recall the story of one of the teachers, Dr. Assaraf.
Many years ago, he created a 'vision board' - a collage of pictures that represented the things he wanted in life, including the home he wanted to live in.
Over the years, he relocated and his vision board ended up in a storage for five years.
Finally, he and his family ended up in California, bought and renovated a place for a year and were getting settled in their new home. His son entered his office and noticed a few boxes sitting by the door and was curious about their contents.
Dr. Assaraf was trying to explain that his 'vision boards' were inside, and showed him the board he created five years prior.
He was shocked to see that the picture of the house he had put up so many years ago, wasn't just like the home they were in now. It was the SAME house.
He had bought his dream home and hadn't even realized it.
Why is this important? For a few reasons.
I've had different clients...ones who have a strong long term vision of the home they want and a plan to get it.
And then there are the ones who continually focus on the negative...they'll never get approved for a mortgage, they can't find a home they love, they don't deserve to live in a certain home etc...
There is a big difference between those clients. One ends up in a home that they love, the other never seems to get there.
You may have some limiting thoughts that you didn't even realize were happening!
My wife used to think that she didn't deserve to be in a great house until she reached a certain age or point in her life. That she somehow shouldn't have a home nicer than what her parents had at her age.
Now, I'm not suggesting you buy a home that you cannot afford. Focus on the process of getting to that home.
Here is a little bit of homework you can do to make your dream home a reality:
1. Describe your dream home in vivid detail...- where is it located?
- what is the view like?
- how many bedrooms?
- how big is that plasma tv in the media room? (sorry, this was mine)
- is it full of character or contemporary in design?
2. Does this home exist?
If so, get a picture and put it up at your desk or on your fridge - somewhere you see on a daily basis.
3. Visualize.
I'm not suggesting you light up the incense and start humming with your legs in a pretzel (but please do so if this works for you). But take a moment to focus on visualizing yourself in this home and owning this home on a daily basis.
4. Eliminate all negative thoughts associated with your ability or likelihood to have this home one day.
Trust me, this does make a difference.
If you want to take the next step towards your dream home, contact me and my gift to you and anyone you refer to me will be a copy of 'The Secret' so you can learn more about it.
Now if you'll excuse me, I have to get back to attracting great clients and helping them find their perfect dream home. :)
Regards,
Mark
(416) 728-2499
March MarketWatch - Q1 Report
It's good news and more good news this month!
Average prices moved up three percent in March over 2006 to $365,285 which is ahead of inflation and good for home owners. "But not so rapidly that first-time home buyers will be pushed out of the market," said TREB President Dorothy Mason.
"The GTA continues to have strong employment numbers and a healthy economy," Mrs. Mason added. "Housing activity is solid and prices are steadily on the rise, so it remains an excellent time to be in the market."
Sales activity continues to be strong, getting the spring market off to a healthy start.
Every three months, I'm creating a trend report so you can see average prices over a quarterly period.
Check out the Q1 stats for your neighbourhood below...
Neighbourhood Watch - Q1: January to March 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $570,817
Semi-detached: $414,750
Condo: $370,223
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $404,628
Semi-Detached: $373,046
Condo: $159,153
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $423,133
Semi-Detached: $383,040
Condo:$323,407
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $808,511
Semi-Detached: $604,212
Condo: $244,901
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,102,741
Semi-Detached: $839,704
Condo: $429,847
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $938,015
Semi-Detached: $505,864
Condo: $530,938
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,663,716
Semi-Detached: n/a
Condo: $438,715
Source: Toronto Real Estate Board March 2007 MarketWatch - for the full report, click here.
Average prices moved up three percent in March over 2006 to $365,285 which is ahead of inflation and good for home owners. "But not so rapidly that first-time home buyers will be pushed out of the market," said TREB President Dorothy Mason.
"The GTA continues to have strong employment numbers and a healthy economy," Mrs. Mason added. "Housing activity is solid and prices are steadily on the rise, so it remains an excellent time to be in the market."
Sales activity continues to be strong, getting the spring market off to a healthy start.
Every three months, I'm creating a trend report so you can see average prices over a quarterly period.
Check out the Q1 stats for your neighbourhood below...
Neighbourhood Watch - Q1: January to March 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $570,817
Semi-detached: $414,750
Condo: $370,223
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $404,628
Semi-Detached: $373,046
Condo: $159,153
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $423,133
Semi-Detached: $383,040
Condo:$323,407
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $808,511
Semi-Detached: $604,212
Condo: $244,901
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,102,741
Semi-Detached: $839,704
Condo: $429,847
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $938,015
Semi-Detached: $505,864
Condo: $530,938
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,663,716
Semi-Detached: n/a
Condo: $438,715
Source: Toronto Real Estate Board March 2007 MarketWatch - for the full report, click here.
Wednesday, March 21, 2007
First Time Home Buyers
Wait! Don't close this window if you are already a home owner.
If you are, great! You know the benefits of homeownership and are probably sitting on a nice pile of equity right now.
But you may know someone who is still renting - maybe a friend, a family member. I truly hope you will pass this information on, because the next two articles are for them.
For those of you who are still renting and don't feel like home ownership is in your near future for whatever reason, read on.
There are two articles below, "How Much House Can Your Rent Buy?" and "New Mortgage Products Put Home Buying Within Reach".
And don't forget to check out the February 2007 Market Watch after these articles.
You'll be suprised to see how close home ownership is a possbility for you or someone you know...
If you are, great! You know the benefits of homeownership and are probably sitting on a nice pile of equity right now.
But you may know someone who is still renting - maybe a friend, a family member. I truly hope you will pass this information on, because the next two articles are for them.
For those of you who are still renting and don't feel like home ownership is in your near future for whatever reason, read on.
There are two articles below, "How Much House Can Your Rent Buy?" and "New Mortgage Products Put Home Buying Within Reach".
And don't forget to check out the February 2007 Market Watch after these articles.
You'll be suprised to see how close home ownership is a possbility for you or someone you know...
How much house can your rent buy?
This month, I'm featuring an article by my mortgage guru, Peter Majthenyi from Mortgage Architects.
This is for all of your renters out there so you can stop building up someone else's home equity and net worth!
If you are a landlord, I apologize. :)
In this article, Peter discusses how new mortgage options can make owning a home a reality...
How much home could your rent buy?
Buying a home is a big financial step, and it’s hard to know when you’re really ready to buy. No wonder that many Canadian renters are still sitting on the white picket fence when it comes to home ownership.
The exciting news is that it could be time to make your move. There’s a few reasons why.
To begin, it’s pretty simple math: if you can afford to rent, chances are that you can afford to buy your own home. Your monthly mortgage payments may be similar to your rent!
That monthly rent cheque doesn’t need to be money out the window; it could be money that’s building you equity in your very own home.
Let’s take a look at how rent and mortgage payments might compare.
If you’re paying $1250 in rent each month, for example, you could be carrying a mortgage of $186,726. If you’re paying $1500, that’s potentially a mortgage of $235,100. Forking over $1750 each month? You could be paying off a mortgage of $283,475!
How are the mortgage payments so affordable?
Firstly, right now you’re benefiting from historically low mortgage rates. Secondly, you now have access to longer-amortization mortgages that lower your monthly mortgage payment. (The examples above were based on that combination: a 5.3% rate and 40-year amortization, plus 3.70% insurance premium, property taxes and heat of $285 per month).
In addition to longer amortization mortgages, interest only mortgages are another option for reducing monthly mortgage payments and maximizing purchasing power.
Think you can’t buy a house because you haven’t saved up a downpayment? Think again.
There are several excellent mortgages available with zero downpayment required. In general, all you need to qualify is a good credit record, and the ability to meet your payments comfortably. Mortgage insurers and innovative lenders believe that Canadians benefit from homeownership – and they’re helping to make it more accessible.
Even if you’ve had past credit problems, new credit repair mortgages can help transition you to a brighter future. That’s more good news for renters!
One more hurdle that some renters worry about is showing enough income to qualify for a mortgage. If you’re self-employed, for example, there are mortgage options available that don’t require you to verify your income. If you have a good credit history and reliable income-earning capacity, then you may qualify for a no income verification mortgage loan.
Still sitting on the fence?
Think about this: every time you sign a rental or lease agreement, you are signing a long lasting contract that has no profit potential whatever – at least, not for you.
When you sign a mortgage loan agreement, not only do you sign onto home ownership, but you also sign up for a great equity-making opportunity too.
Buying a home makes both financial and emotional sense. There are the intangible pleasures that home ownership offers: increased freedom, privacy, and a sense of community, for example.
Then there are the more tangible rewards: for decades, Canadian homeowners have been able to leverage their property purchase into a large financial return.
You’re at a moment of real opportunity right now: this may be the perfect time for you to get on the right side of that picket fence!
If you have been thinking about owning a home, but don't know what is possible, I encourage you to give me or Peter a call to find out. You may be pleasantly suprised!
This is for all of your renters out there so you can stop building up someone else's home equity and net worth!
If you are a landlord, I apologize. :)
In this article, Peter discusses how new mortgage options can make owning a home a reality...
How much home could your rent buy?Buying a home is a big financial step, and it’s hard to know when you’re really ready to buy. No wonder that many Canadian renters are still sitting on the white picket fence when it comes to home ownership.
The exciting news is that it could be time to make your move. There’s a few reasons why.
To begin, it’s pretty simple math: if you can afford to rent, chances are that you can afford to buy your own home. Your monthly mortgage payments may be similar to your rent!
That monthly rent cheque doesn’t need to be money out the window; it could be money that’s building you equity in your very own home.
Let’s take a look at how rent and mortgage payments might compare.
If you’re paying $1250 in rent each month, for example, you could be carrying a mortgage of $186,726. If you’re paying $1500, that’s potentially a mortgage of $235,100. Forking over $1750 each month? You could be paying off a mortgage of $283,475!
How are the mortgage payments so affordable?
Firstly, right now you’re benefiting from historically low mortgage rates. Secondly, you now have access to longer-amortization mortgages that lower your monthly mortgage payment. (The examples above were based on that combination: a 5.3% rate and 40-year amortization, plus 3.70% insurance premium, property taxes and heat of $285 per month).
In addition to longer amortization mortgages, interest only mortgages are another option for reducing monthly mortgage payments and maximizing purchasing power.
Think you can’t buy a house because you haven’t saved up a downpayment? Think again.
There are several excellent mortgages available with zero downpayment required. In general, all you need to qualify is a good credit record, and the ability to meet your payments comfortably. Mortgage insurers and innovative lenders believe that Canadians benefit from homeownership – and they’re helping to make it more accessible.
Even if you’ve had past credit problems, new credit repair mortgages can help transition you to a brighter future. That’s more good news for renters!
One more hurdle that some renters worry about is showing enough income to qualify for a mortgage. If you’re self-employed, for example, there are mortgage options available that don’t require you to verify your income. If you have a good credit history and reliable income-earning capacity, then you may qualify for a no income verification mortgage loan.
Still sitting on the fence?
Think about this: every time you sign a rental or lease agreement, you are signing a long lasting contract that has no profit potential whatever – at least, not for you.
When you sign a mortgage loan agreement, not only do you sign onto home ownership, but you also sign up for a great equity-making opportunity too.
Buying a home makes both financial and emotional sense. There are the intangible pleasures that home ownership offers: increased freedom, privacy, and a sense of community, for example.
Then there are the more tangible rewards: for decades, Canadian homeowners have been able to leverage their property purchase into a large financial return.
You’re at a moment of real opportunity right now: this may be the perfect time for you to get on the right side of that picket fence!
If you have been thinking about owning a home, but don't know what is possible, I encourage you to give me or Peter a call to find out. You may be pleasantly suprised!
New mortgage products put home buying within reach!
Like many first time home buyers, you may be paying a decent amount of rent each month, and may have already figured out the downpayment situation.
But the cost of housing in Toronto may still seem prohibitive and you might not feel like you want to deal with the mortage payment to get into the home or neighbourhood that you want.
Good news. There are a number of new mortage products that offer a solution.
In this article, Peter discusses 30+ Year mortgages that may put home ownership within your reach...
Over 30-year mortages put that first home within reach.
Let's call them John and Julie. Recently married, they're still struggling to pay off student loans and the new car they've just purchased.
John and Julie have moved into a nicer apartment, but are watching their rent money go out the window while their more established friends enjoy the rise in the value of their homes.
Interest rates are enticingly low, but John and Julie still aren't sure they can handle mortgage payments, even though they feel that they're missing out on a great opportunity in today's market, and they do want their own place to decorate and enjoy.
There's good news for John and Julie. Homebuyers can now stretch mortgage amortizations - the length of time calculated to pay off a mortgage - to 30, 35 and even 40 years.
Not too long ago, it was almost impossible to get a mortgage amortization for more than 25 years. In 2005, the Canada Mortgage and Housing Corporation (CMHC) announced that they would insure 30-year mortgages with only 5% down in a special pilot project.
The move was calculated to help Canadians like John and Julie get into their own home. Canadians went house shopping and took advantage of the opportunity, causing CMHC to make the 30-year mortgage part of their ongoing product offering and even extending amortizations to 35 years.
In the spring of 2006, a 40-year amortization mortgage was introduced to the marketplace.
The rationale behind longer amortizations is simple; they help bring down the cost of monthly payments and bring home ownership within reach for young couples, new immigrants, self-employed Canadians, or prospective homebuyers with less-than-perfect credit.
They are also good news for homebuyers who are struggling in an area where real estate prices are rising rapidly, or need a solution to help them through a tough financial period.
What kind of difference can homebuyers expect?
Well, John and Julie hope to take out a mortgage of $250,000. At a rate of 6%, they would need to find $1600 per month to service the mortgage on a 25-year amortization. But they need only $1487 for a 30-year amortization or $1413 for a 35-year: similar to what they are currently paying for rent.
Their mortgage planner can help them factor in any additional costs, but these longer amortization mortgages put mortgage payments within reach.
They do increase the amount of overall interest paid, which is why they shouldn't be considered to simply reduce your monthly payment if you can afford a shorter amortization period.
So why would anyone want to spend over 30 years paying for a home and pay more interest in the long run?
With good mortgage planning, it doesn't have to work out that way. The long amortization period helps new homebuyers get into the housing market at a lower threshold.
As John and Julie finish paying off their loans, and as their income increases, they'll be able to shorten their amortization period and support a larger monthly payment.
But until then, they'll have an early advantage that allows them to enjoy their new home now and begin building home equity; otherwise they'd be watching their monthly rent payment work for their landlord rather than for them.
And that - says John and Julie - is a great beginning.
But the cost of housing in Toronto may still seem prohibitive and you might not feel like you want to deal with the mortage payment to get into the home or neighbourhood that you want.
Good news. There are a number of new mortage products that offer a solution.
In this article, Peter discusses 30+ Year mortgages that may put home ownership within your reach...
Over 30-year mortages put that first home within reach.Let's call them John and Julie. Recently married, they're still struggling to pay off student loans and the new car they've just purchased.
John and Julie have moved into a nicer apartment, but are watching their rent money go out the window while their more established friends enjoy the rise in the value of their homes.
Interest rates are enticingly low, but John and Julie still aren't sure they can handle mortgage payments, even though they feel that they're missing out on a great opportunity in today's market, and they do want their own place to decorate and enjoy.
There's good news for John and Julie. Homebuyers can now stretch mortgage amortizations - the length of time calculated to pay off a mortgage - to 30, 35 and even 40 years.
Not too long ago, it was almost impossible to get a mortgage amortization for more than 25 years. In 2005, the Canada Mortgage and Housing Corporation (CMHC) announced that they would insure 30-year mortgages with only 5% down in a special pilot project.
The move was calculated to help Canadians like John and Julie get into their own home. Canadians went house shopping and took advantage of the opportunity, causing CMHC to make the 30-year mortgage part of their ongoing product offering and even extending amortizations to 35 years.
In the spring of 2006, a 40-year amortization mortgage was introduced to the marketplace.
The rationale behind longer amortizations is simple; they help bring down the cost of monthly payments and bring home ownership within reach for young couples, new immigrants, self-employed Canadians, or prospective homebuyers with less-than-perfect credit.
They are also good news for homebuyers who are struggling in an area where real estate prices are rising rapidly, or need a solution to help them through a tough financial period.
What kind of difference can homebuyers expect?
Well, John and Julie hope to take out a mortgage of $250,000. At a rate of 6%, they would need to find $1600 per month to service the mortgage on a 25-year amortization. But they need only $1487 for a 30-year amortization or $1413 for a 35-year: similar to what they are currently paying for rent.
Their mortgage planner can help them factor in any additional costs, but these longer amortization mortgages put mortgage payments within reach.
They do increase the amount of overall interest paid, which is why they shouldn't be considered to simply reduce your monthly payment if you can afford a shorter amortization period.
So why would anyone want to spend over 30 years paying for a home and pay more interest in the long run?
With good mortgage planning, it doesn't have to work out that way. The long amortization period helps new homebuyers get into the housing market at a lower threshold.
As John and Julie finish paying off their loans, and as their income increases, they'll be able to shorten their amortization period and support a larger monthly payment.
But until then, they'll have an early advantage that allows them to enjoy their new home now and begin building home equity; otherwise they'd be watching their monthly rent payment work for their landlord rather than for them.
And that - says John and Julie - is a great beginning.
For more information about these producst, contact Peter at the number above or visit his website at www.mymortgageplanner.ca
February 2007 Market Watch
Ok, so we do have some fair-weather home buyers, but the cold snap in February didn't dampen home shopping spirits too much.
February 2007 was the second-best ever for sales activity with 6,772 sales, just higher than 2006's 6,756 sales.
TREB President Dorothy Mason commented, "While the weather last month may have been cold, Toronto's resale housing market remained hot,"
"And while it is too early to make predictions, it is clear from the start of 2007 that the spring season is likely to produce sales numbers at least comparable to those of the past several years, which have been record or near record performances."
Meanwhile, average prices climbed four per cent over the previous month to $368,687 as sales activity accelerated. They were also up four per cent from the February 2006 figure of $353,928. The average time-on-market was a deep freeze of 35 days.
Check out the following areas to see average prices from February 2007 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $578,038
Semi-detached: $427,005
Condo: $354,838
E03 - Danforth (north)(DVP, victoria park, danforth)
Detached: $426,450
Semi-Detached: $385,194
Condo: $149,926
E01 - Danforth (south) Riverdale (DVP, danforth, coxwell)
Detached: $456,936
Semi-Detached: $396,684
Condo:$289,240
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $896,730
Semi-Detached: $572,000
Condo: $264,703
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $721,125
Semi-Detached: $579,909
Condo: $315,778
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,086,605
Semi-Detached: $360,800
Condo: $638,482
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,569,439
Semi-Detached: n/a
Condo: $315,500
Source: Toronto Real Estate Board February 2007 MarketWatch - for the full report, click here.
February 2007 was the second-best ever for sales activity with 6,772 sales, just higher than 2006's 6,756 sales.
TREB President Dorothy Mason commented, "While the weather last month may have been cold, Toronto's resale housing market remained hot,"
"And while it is too early to make predictions, it is clear from the start of 2007 that the spring season is likely to produce sales numbers at least comparable to those of the past several years, which have been record or near record performances."
Meanwhile, average prices climbed four per cent over the previous month to $368,687 as sales activity accelerated. They were also up four per cent from the February 2006 figure of $353,928. The average time-on-market was a deep freeze of 35 days.
Check out the following areas to see average prices from February 2007 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $578,038
Semi-detached: $427,005
Condo: $354,838
E03 - Danforth (north)(DVP, victoria park, danforth)
Detached: $426,450
Semi-Detached: $385,194
Condo: $149,926
E01 - Danforth (south) Riverdale (DVP, danforth, coxwell)
Detached: $456,936
Semi-Detached: $396,684
Condo:$289,240
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $896,730
Semi-Detached: $572,000
Condo: $264,703
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $721,125
Semi-Detached: $579,909
Condo: $315,778
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,086,605
Semi-Detached: $360,800
Condo: $638,482
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,569,439
Semi-Detached: n/a
Condo: $315,500
Source: Toronto Real Estate Board February 2007 MarketWatch - for the full report, click here.
Friday, February 16, 2007
January 2007 Market Watch
Our delayed winter meant a lot of people were buying homes in January! Sales activity was up 6% over last year.
Not only that, but higher temperatures resulted in higher prices. Average prices climbed up 5% over December and up six percent over January 2006.
But one month, especially the first one of the year should not be the benchmark. Februrary remains to be seen with less than ideal conditions for home shopping and selling.
Still, Ted Tsiakopolous, CMHC's Ontario regional economist stated that "The market remains resilient despite slower job growth, high energy prices, and a loss of migrants to western Canada. Historically low interest rates, strong income growth and healthy consumer confidence are important factors in keeping January home sales buoyant across the GTA."
He continues, saying "These are idea conditions, and consumers can feel confident making a switch to another home or realizing their dream of home ownership for the first time."
Check out the following areas to see average prices from December 2006 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $584,631
Semi-detached: $387,206
Condo: $383,833
E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $404,498
Semi-Detached: $353,150
Condo: $138,292
E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $352,802
Semi-Detached: $342,910
Condo:$286,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $729,440
Semi-Detached: $646,192
Condo: $214,676
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,078,050
Semi-Detached: n/a
Condo: $434,878
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $756,167
Semi-Detached: $342,165
Condo: $615,720
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $2,120,292
Semi-Detached: n/a
Condo: $471,333
Source: Toronto Real Estate Board January 2007 MarketWatch - for the full report, click here.
Not only that, but higher temperatures resulted in higher prices. Average prices climbed up 5% over December and up six percent over January 2006.
But one month, especially the first one of the year should not be the benchmark. Februrary remains to be seen with less than ideal conditions for home shopping and selling.
Still, Ted Tsiakopolous, CMHC's Ontario regional economist stated that "The market remains resilient despite slower job growth, high energy prices, and a loss of migrants to western Canada. Historically low interest rates, strong income growth and healthy consumer confidence are important factors in keeping January home sales buoyant across the GTA."
He continues, saying "These are idea conditions, and consumers can feel confident making a switch to another home or realizing their dream of home ownership for the first time."
Check out the following areas to see average prices from December 2006 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $584,631
Semi-detached: $387,206
Condo: $383,833
E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $404,498
Semi-Detached: $353,150
Condo: $138,292
E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $352,802
Semi-Detached: $342,910
Condo:$286,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $729,440
Semi-Detached: $646,192
Condo: $214,676
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,078,050
Semi-Detached: n/a
Condo: $434,878
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $756,167
Semi-Detached: $342,165
Condo: $615,720
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $2,120,292
Semi-Detached: n/a
Condo: $471,333
Source: Toronto Real Estate Board January 2007 MarketWatch - for the full report, click here.
Creating a 'Green' Home
With rising energy costs and the disastrous impact on the environment we can no longer wash our hands of doing what we can to help.
Although we haven't yet seen many buyers pushing for 'green' homes, I predict this will be the next trend on buyers' wish lists (and hopefully a permanent one).
So, what can you do easily, right now to make an impact both for yourself, for the future and to make your home even more desirable to buyers?
Here are some ideas from Al Gore's "An Inconvenient Truth" website:
Replace a regular incandescent light bulb with a compact fluorescent light bulb (cfl)
CFLs use 60% less energy than a regular bulb. This simple switch will save about 300 pounds of carbon dioxide a year. If every family in the U.S. made the switch, we’d reduce carbon dioxide by more than 90 billion pounds!
Move your thermostat down 2° in winter and up 2° in summer.
Almost half of the energy we use in our homes goes to heating and cooling. You could save about 2,000 pounds of carbon dioxide a year with this simple adjustment.
Clean or replace filters.
Cleaning a dirty air filter on your furnace and airconditioner can save 350 pounds of carbon dioxide a year.
Install a programmable thermostat.
They will automatically lower the heat or air conditioning at night and raise them again in the morning. They can save you $100 a year on your energy bill.
Choose energy efficient appliances when making new purchases.
Look for the Energy Star label on new appliances to choose the most efficient models. If each household in the U.S. replaced its existing appliances with the most efficient models available, we’d eliminate 175 million tons of carbon dioxide emissions every year!
Wrap your water heater in an insulation blanket.
You’ll save 1,000 pounds of carbon dioxide a year with this simple action. You can save another 550 pounds per year by setting the thermostat no higher than 120 degrees Fahrenheit.
Use less hot water.
It takes a lot of energy to heat water. You can use less hot water by installing a low flow showerhead (350 pounds of carbon dioxide saved per year) and washing your clothes in cold or warm water (500 pounds saved per year) instead of hot.
Unplug electronics from the wall when you’re not using them.
Even when turned off, things like hairdryers, cell phone chargers and televisions use energy. In fact, the energy used to keep display clocks lit and memory chips working accounts for 5 percent of total domestic energy consumption and spews 18 million tons of carbon into the atmosphere every year!
Insulate and weatherize your home.
Properly insulating your walls and ceilings can save 25% of your home heating bill and 2,000 pounds of carbon dioxide a year. Caulking and weather-stripping can save another 1,700 pounds per year.
Switch to green power.
In many areas, you can switch to energy generated by clean, renewable sources such as wind and solar. The Green Power Network is a good place to start to figure out what’s available in your area.
Plant a tree.
A single tree will absorb one ton of carbon dioxide over its lifetime. Shade provided by trees can also reduce your air conditioning bill by 10 to 15%. The Arbor Day Foundation has information on planting and provides trees you can plant with membership.
To share any of your ideas, please click on the comments box below!
Although we haven't yet seen many buyers pushing for 'green' homes, I predict this will be the next trend on buyers' wish lists (and hopefully a permanent one).
So, what can you do easily, right now to make an impact both for yourself, for the future and to make your home even more desirable to buyers?
Here are some ideas from Al Gore's "An Inconvenient Truth" website:
Replace a regular incandescent light bulb with a compact fluorescent light bulb (cfl)CFLs use 60% less energy than a regular bulb. This simple switch will save about 300 pounds of carbon dioxide a year. If every family in the U.S. made the switch, we’d reduce carbon dioxide by more than 90 billion pounds!
Move your thermostat down 2° in winter and up 2° in summer.Almost half of the energy we use in our homes goes to heating and cooling. You could save about 2,000 pounds of carbon dioxide a year with this simple adjustment.
Clean or replace filters.Cleaning a dirty air filter on your furnace and airconditioner can save 350 pounds of carbon dioxide a year.
Install a programmable thermostat.
They will automatically lower the heat or air conditioning at night and raise them again in the morning. They can save you $100 a year on your energy bill.
Choose energy efficient appliances when making new purchases.
Look for the Energy Star label on new appliances to choose the most efficient models. If each household in the U.S. replaced its existing appliances with the most efficient models available, we’d eliminate 175 million tons of carbon dioxide emissions every year!
Wrap your water heater in an insulation blanket.
You’ll save 1,000 pounds of carbon dioxide a year with this simple action. You can save another 550 pounds per year by setting the thermostat no higher than 120 degrees Fahrenheit.
Use less hot water.
It takes a lot of energy to heat water. You can use less hot water by installing a low flow showerhead (350 pounds of carbon dioxide saved per year) and washing your clothes in cold or warm water (500 pounds saved per year) instead of hot.
Unplug electronics from the wall when you’re not using them.Even when turned off, things like hairdryers, cell phone chargers and televisions use energy. In fact, the energy used to keep display clocks lit and memory chips working accounts for 5 percent of total domestic energy consumption and spews 18 million tons of carbon into the atmosphere every year!
Insulate and weatherize your home.
Properly insulating your walls and ceilings can save 25% of your home heating bill and 2,000 pounds of carbon dioxide a year. Caulking and weather-stripping can save another 1,700 pounds per year.
Switch to green power.
In many areas, you can switch to energy generated by clean, renewable sources such as wind and solar. The Green Power Network is a good place to start to figure out what’s available in your area.
Plant a tree.
A single tree will absorb one ton of carbon dioxide over its lifetime. Shade provided by trees can also reduce your air conditioning bill by 10 to 15%. The Arbor Day Foundation has information on planting and provides trees you can plant with membership.
To share any of your ideas, please click on the comments box below!
Wednesday, January 17, 2007
Market Watch - 2006 Report and the Year Ahead
2006 at a glance...
In the City of Toronto, 34,404 sales were recorded while the resale market was at its most active, up one percent over 2005. The average price rose five percent from $335,907 to $351,941.
What does this mean for you?
If you're waiting to get into the market until the economy slows down and prices drop then you'll be waiting quite a while, not to mention losing valuable equity and growth in your property value in the meantime.
If you own real estate, congratulations - you are most likely benefiting from the average 5% increase in value in your home.
For years now many people have been saying the market was going to slow down. In general terms, this could be the case. But for a growing city whose real estate is undervalued, values keep increasing.
Here is a snapshot of the average cost of a home in North American cities in 2006:
NOTES: Median sale price for 2,200 sq. ft. residence in low-crime neighbourhood. Specifics: 3+ bedroom, 2½+ bath, attached 2-car garage, 2,200 square foot (190 square metre) residence, on at least a 6,500 square foot (604 square metre) lot.
Montreal $335,200
Calgary $369,300
Toronto $421,500
Atlanta $436,300
Dallas $438,200
Chicago $597,800
Vancouver $609,800
Washington $862,800
Los Angeles $1,187,500
Boston $1,384,100
New York $1,599,300
San Francisco $1,635,200
Source: Economic Research Institute, The Geographic Reference Report 2006
Toronto, compared to other major metropolitan cities and financial centres, is significantly undervalued and affordable. This trend continues if you look at other major cities throughout the world.
Like any economy, there will be valleys and peaks. But historical value increases show that in the long term, it is still better to be in the market than out:
Year - Average Price of Single Family Home
1975 - $57,581
1980 - $75,694
1985 - $109,094
1990 - $255,020
1995 - $203,028
2000 - $243,255
2005 - $335,907
2006 - $351,941
Source: Toronto Real Estate Board MarketWatch - December 2006
What is in store for 2007?
The year ahead should prove to be a busy on if steady activity and value increases of five percent from 2005 to 2006 continue.
TREB president Dorothy Mason states, "This means that prices continue to outpace inflation, making home-ownership a sound investment in today's economy and invariably in the long term."
If you know anyone who is not currently in the market, I hope you'll share this information with them.
Best wishes for a happy and successful 2007!
Don't forget to check out the blog below, "What's Hot and What's Not in Homes for 2007!"
**************************************************************************
Check out the following areas to see average prices from December 2006 in your neighbourhood.
Neighbourhood Watch...
E02 -The Beach
(coxwell, danforth, victoria park)
Detached: $528,590
Semi-detached: $386,950
Condo: $288,313
E03 - Danforth (north)
(DVP, victoria park, danforth)
Detached: $353,769
Semi-Detached: $337,850
Condo: $185,100
E01 - Danforth (south) Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $449,929
Semi-Detached: $348,875
Condo:$656,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Detached: $764,022
Semi-Detached: $486,134
Condo: $262,977
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,788,625
Semi-Detached: n/a
Condo: $578,396
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Detached: $715,356
Semi-Detached: $583,750
Condo: $394,614
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Detached: $1,611,042
Semi-Detached: n/a
Condo: $255,000
Source: Toronto Real Estate Board December 2006 MarketWatch - for the full report, click here.
Wednesday, January 10, 2007
What's Hot, What's Not in Homes for 2007!
Ever wondered what people are looking for in a home when selling your own place? Have you really thought about what you are looking for in your own search?
Here is a summary of what's hot and what's not in homes for 2007.
source: REM Magazine "What's in , what's out with home buyers" January, 2007
WHAT'S HOT
Upscale Garages
From storage systems, heating, and flooring, garages have evolved!
Two Homes Offices
Work, work, work...people are forgetting the commute and saving their marraiges at the same time.
Heated Patios & Walkways
Tired of maintenance and looking to expand their living space al fresco, baby boomers are investing in this feature.
Snoring Rooms
Need we say more? Again, a great way to save your marriage.
Structured Wiring and Wireless
The ultimate goal, no wires...at least we're getting close. From coaxial TV cable to full home networks centres, you'll need an IT guy for the house.
Mixed Finishes
Who says the island has to match the wall cabinets? Designers are playing with textures and tones.
Selling Strategy
Homes that are priced right and good market timing if possible (spring and summer!).
WHAT'S NOT...
Selling Your Home "AS IS"
There is too much competition and too much to lose financially by not making the effort to do even the basic repairs, cleaning and staging.
Small Bedrooms
Developers tried to maximize profits by increasing the room count but if you can't fit a queen size bed in comfortably, it doesn't count anymore.
Hardwood Laminate Floors
No matter how good quality you buy, buyers can spot them a mile away. You may be saving $ when you put them in but you'll lose even more in the value of your home.
Buyer Strategies
Buyers are generally no longer putting in offers over asking price when a home is listed below market value to generate multiple offers.
In Summary...
Your agent should bring in a home staging professional to maximize your home's value and attract buyers for the 2007 market.
A little invested prior to the sale of a properly priced home will result in a quick sale at it's maximum value!!
Here is a summary of what's hot and what's not in homes for 2007.
source: REM Magazine "What's in , what's out with home buyers" January, 2007
WHAT'S HOT
Upscale Garages
From storage systems, heating, and flooring, garages have evolved!
Two Homes Offices
Work, work, work...people are forgetting the commute and saving their marraiges at the same time.
Heated Patios & Walkways
Tired of maintenance and looking to expand their living space al fresco, baby boomers are investing in this feature.
Snoring Rooms
Need we say more? Again, a great way to save your marriage.
Structured Wiring and Wireless
The ultimate goal, no wires...at least we're getting close. From coaxial TV cable to full home networks centres, you'll need an IT guy for the house.
Mixed Finishes
Who says the island has to match the wall cabinets? Designers are playing with textures and tones.
Selling Strategy
Homes that are priced right and good market timing if possible (spring and summer!).
WHAT'S NOT...
Selling Your Home "AS IS"
There is too much competition and too much to lose financially by not making the effort to do even the basic repairs, cleaning and staging.
Small Bedrooms
Developers tried to maximize profits by increasing the room count but if you can't fit a queen size bed in comfortably, it doesn't count anymore.
Hardwood Laminate Floors
No matter how good quality you buy, buyers can spot them a mile away. You may be saving $ when you put them in but you'll lose even more in the value of your home.
Buyer Strategies
Buyers are generally no longer putting in offers over asking price when a home is listed below market value to generate multiple offers.
In Summary...
Your agent should bring in a home staging professional to maximize your home's value and attract buyers for the 2007 market.
A little invested prior to the sale of a properly priced home will result in a quick sale at it's maximum value!!
Wednesday, November 08, 2006
Oct. '06 Toronto Real Estate Market Report
Despite the water cooler chat that the market is either in a downturn or heading for one, people just keep buying and selling homes in Toronto.
The numbers continue to prove the naysayers wrong...average prices in October rose 2 percent over September and the number of transactions rose 4 percent.
TREB president Dorothy Mason stated "This is a very heathy, active market." Average prices over October 2005 are up four percent with the average home in the GTA at $362,423 compared to $342,450 in 2005.
With mortgage rates nudging down with a posted 5-year fixed rate of 5.1% the market will most likely continue with strength.
Here are the highlights of some districts from the Toronto Real Estate Board's October 2006 most recent market watch:
(Each number represents the average - street parameters are in order of west, north, east, south boundaries.)
E02 -The Beach
(coxwell, danforth, victoria park)
Days on market: 19
% of list: 100%
Detached: $575,698
Semi-detached: $388,501
Condo: $269,3333
E03 - Danforth (north)
(DVP, victoria park, danforth)
Days on market: 24
% of list: 99%
Detached: $381,980
Semi-Detached: $362,474
Condo: $172,100
E01 - Danforth (south) /Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $377,322
Semi-Detached: $376,352
Condo:$339,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Days on market: 28
% of list: 100%
Detached: $812,296
Semi-Detached: $515,613
Condo: $247,500
C09 - Rosedale
(yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,630,667
Semi-Detached: $954,382
Condo: $403,045
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Days on market: 40
% of list: 98%
Detached: $819,626
Semi-Detached: $447,214
Condo: $451,674
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Days on market: 33
% of list: 97%
Detached: $1,669,444
Semi-Detached: n/a
Condo: $554,450
All data is from the Torono Real Estate Board October 2006 MarketWatch - for the full report, click here.
The numbers continue to prove the naysayers wrong...average prices in October rose 2 percent over September and the number of transactions rose 4 percent.
TREB president Dorothy Mason stated "This is a very heathy, active market." Average prices over October 2005 are up four percent with the average home in the GTA at $362,423 compared to $342,450 in 2005.
With mortgage rates nudging down with a posted 5-year fixed rate of 5.1% the market will most likely continue with strength.
Here are the highlights of some districts from the Toronto Real Estate Board's October 2006 most recent market watch:
(Each number represents the average - street parameters are in order of west, north, east, south boundaries.)
E02 -The Beach
(coxwell, danforth, victoria park)
Days on market: 19
% of list: 100%
Detached: $575,698
Semi-detached: $388,501
Condo: $269,3333
E03 - Danforth (north)
(DVP, victoria park, danforth)
Days on market: 24
% of list: 99%
Detached: $381,980
Semi-Detached: $362,474
Condo: $172,100
E01 - Danforth (south) /Riverdale
(DVP, danforth, coxwell)
Days on market: 17
% of list: 101%
Detached: $377,322
Semi-Detached: $376,352
Condo:$339,000
C04 - Bedford West & Lytton Park
(allen, 401, yonge, eglinton)
Days on market: 28
% of list: 100%
Detached: $812,296
Semi-Detached: $515,613
Condo: $247,500
C09 - Rosedale
(yonge, st.clair, bayview, bloor)
Days on market: 31
% of list: 97%
Detached: $1,630,667
Semi-Detached: $954,382
Condo: $403,045
C03 - Forest Hill
(allen, eglinton, yonge, st.clair)
Days on market: 40
% of list: 98%
Detached: $819,626
Semi-Detached: $447,214
Condo: $451,674
C12- Lawrence Park/Bedford East
(yonge, 401, leslie, eglinton)
Days on market: 33
% of list: 97%
Detached: $1,669,444
Semi-Detached: n/a
Condo: $554,450
All data is from the Torono Real Estate Board October 2006 MarketWatch - for the full report, click here.
Monday, November 06, 2006
Why won't my house sell?
My wife was recently on the www.beachestoronto.com chatroom answering a question posted by another beaches resident. Her neighbour's house had been sitting on the market for some time and there were some opinions as to why it had not sold. I shared my opinion as well as some stats from the Toronto Real Estate Board market report via her reply to help answer why a home often won't sell...
"A few things to consider:
1. The actual activity in the market of this area is not far below with this time last year in terms of number of sales so things are still going strong. Although you are correct...you aren't seeing the crazy bidding wars quite as much. Current stats show houses in this area during the month of September (classified as 'E02' on MLS) are on the market for an average of 19 days and sell for 101% of list. Average for days on market has only gone up 2 days. Median price is up to $394,000 for all types of homes compared to $373,500 last year. For detached homes it was $506,000 last year and $600,000 now!
2. Overall, three primary elements are going to sell a home - and true, there are some that don't matter to everyone - but generally speaking, we're talking about Location, Condition and Price. If a home shows beautifully, has a great location, but isn't selling, it's usually overpriced. Net net, if you can't adjust location, and the home shows beautifully, then the price needs to be looked at.
You've all probably heard this time and time again but it's true. Many home owners think their home is worth more or have been pursuaded by an agent that it is worth more to get the listing. They want to take a shot at a higher price and see if they can get it.
Unfortunately, the house sits on the market and doesn't sell. Why? Most people and agents search by MLS to scope out what is in their price range. If yours is listed above that range, they likely won't see it. Second, even if they do see an ad or a flyer, they are going to compare it to other homes that are priced properly in that range and it will pale in comparison. Many people ask why a buyer won't just put an offer in. Given the effort, emotional commitment etc. that you get into once you start that negotiation process, unless you realistically think it's going to result in a sale, most people don't want to get into it. Then, the price may get adjusted to the market later but now the house is 'stale'. People wonder what is wrong with it and they've lost the momentum and interest of a new listing.
Case in point. My husband just worked with a client that listed with another agent in the spring who priced it above market. It sat and sat, they dropped the price, and it still didn't sell. They decided to work with him this time based on a referral so it went back on the market last week, priced appropriately (and brought in a stager to make sure it showed as well as possible). It sold in one day above asking price and above what the reduced price had been in the spring. Your agent has to do their homework (they should be providing you with a full comparative market analysis) to ensure you get the best possible price within the current market.
Net-net, the market in this neighbourhood is still going very strong but as long as people respect market values, use the right pricing strategy depending on their goals, and ensure they do everything possible to make sure their home appeals to buyers, then you should have success.
In terms of forecasting the market, no one has a crystal ball and people have been predicting for years that the market is going to slow down - the numbers above are clearly contradicting this. Toronto as a city is undervalued. It depends on your interests...are you getting into the market for the short or long term? The Beach in particular will be somewhat sheltered from any market drops because of it's location. Yes, as interest rates rise buyers will be more hesitant to jump in but overall, better to be in the market than out.
"A few things to consider:
1. The actual activity in the market of this area is not far below with this time last year in terms of number of sales so things are still going strong. Although you are correct...you aren't seeing the crazy bidding wars quite as much. Current stats show houses in this area during the month of September (classified as 'E02' on MLS) are on the market for an average of 19 days and sell for 101% of list. Average for days on market has only gone up 2 days. Median price is up to $394,000 for all types of homes compared to $373,500 last year. For detached homes it was $506,000 last year and $600,000 now!
2. Overall, three primary elements are going to sell a home - and true, there are some that don't matter to everyone - but generally speaking, we're talking about Location, Condition and Price. If a home shows beautifully, has a great location, but isn't selling, it's usually overpriced. Net net, if you can't adjust location, and the home shows beautifully, then the price needs to be looked at.
You've all probably heard this time and time again but it's true. Many home owners think their home is worth more or have been pursuaded by an agent that it is worth more to get the listing. They want to take a shot at a higher price and see if they can get it.
Unfortunately, the house sits on the market and doesn't sell. Why? Most people and agents search by MLS to scope out what is in their price range. If yours is listed above that range, they likely won't see it. Second, even if they do see an ad or a flyer, they are going to compare it to other homes that are priced properly in that range and it will pale in comparison. Many people ask why a buyer won't just put an offer in. Given the effort, emotional commitment etc. that you get into once you start that negotiation process, unless you realistically think it's going to result in a sale, most people don't want to get into it. Then, the price may get adjusted to the market later but now the house is 'stale'. People wonder what is wrong with it and they've lost the momentum and interest of a new listing.
Case in point. My husband just worked with a client that listed with another agent in the spring who priced it above market. It sat and sat, they dropped the price, and it still didn't sell. They decided to work with him this time based on a referral so it went back on the market last week, priced appropriately (and brought in a stager to make sure it showed as well as possible). It sold in one day above asking price and above what the reduced price had been in the spring. Your agent has to do their homework (they should be providing you with a full comparative market analysis) to ensure you get the best possible price within the current market.
Net-net, the market in this neighbourhood is still going very strong but as long as people respect market values, use the right pricing strategy depending on their goals, and ensure they do everything possible to make sure their home appeals to buyers, then you should have success.
In terms of forecasting the market, no one has a crystal ball and people have been predicting for years that the market is going to slow down - the numbers above are clearly contradicting this. Toronto as a city is undervalued. It depends on your interests...are you getting into the market for the short or long term? The Beach in particular will be somewhat sheltered from any market drops because of it's location. Yes, as interest rates rise buyers will be more hesitant to jump in but overall, better to be in the market than out.
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