Category Archives: Before You Buy

National Home Sales Retreat Slightly, Toronto Real Estate Market Still Hot

Posted on February 22, 2012 | Leave a comment

According to the latest information from the Canadian Real Estate Association, home sales in Canada retreated slightly January 2012 when compared to December 2011, with a 4.5 per cent decline.

“The national housing market is stabilizing and remains well balanced,” said the president of the Canadian Real Estate Association, Gary Morse. “The said, forecasts for economic and job growth going forward vary widely for different parts of the country, suggesting a possible continuation of a softening trend in some markets, as well as the potential that demand will pick up based on strong fundamentals in others. All real estate is local, so talk to your local Realtor to understand how price trends in your neighbourhood are shaping up,” he said.

However, sales increased by four per cent over January of last year across Canada. Because new listings are also up more than sales (especially in Toronto), the market is a bit more balanced.

“Year-over-year comparisons in the national average price are expected to become volatile and may turn negative, reflecting average price developments in the first half of 2011 in Vancouver,” said the chief economist at the Canadian Real Estate Association, Gregory Klump. “At that time, high-end home sales in Vancouver’s priciest neighbourhoods surged to all-time record levels, which skewed the national average price upward considerably.

If this more balanced market created by higher listings than sales continues, buyers will have less competition when they put in an offer on a home.

“A replay of this phenomenon is not expected this year,” he added, “as a result, comparisons for national average price to year-ago levels over the coming months will reflect an upwardly skewed base effect – for this reason, year-over-year comparisons should be kept in perspective.”

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Toronto Home Sales Increase In Early February

Posted on February 20, 2012 | Leave a comment

According to the latest numbers from the Toronto Real Estate Board, home sales in Toronto increased during the first 14 days in February 2012 by nine per cent – to 3,206 homes sold from 2,933 homes sold last year.

“The GTA resale home market became better supplied during the first 14 days of February,” said Toronto Real Estate Board president Richard Silver in a press release. “If growth in new listings continues to outstrip growth in sales this year, competition between home buyers will ease. More balanced market conditions on a sustained basis would result in a lower annual rate of price growth later in 2012.”

The average home selling price was also up by nine per cent, but new listings increased by 13 per cent – which bodes well for prices later this year.

“Both buyers and sellers are aware of the substantial competition that exists for most listings in the GTA,” said the Toronto Real Estate Board senior manager of market analysis, Jason Mercer. “There is not a mismatch in expectations, so homes sell quickly at close to the asking price.”

For more information, visit the Toronto Real Estate Board press release here.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Bank of Canada Interest Rates Hold Steady Until At Least March

Posted on February 14, 2012 | Leave a comment

In January 2012, the Bank of Canada announced that it would keep interest rates at record lows (1.25 per cent) at least through to March, when its next announcement is scheduled to take place.

What does this mean for home buyers? It means that home buying will remain more affordable for the time being, and that now is one of the best times to buy a home in Toronto.

“The Bank said it expects the pace of growth going forward to moderate by more than initially thought, but the forecast for growth this year has actually been raised slightly,” said the chief economist for the Canadian Real Estate Association, Gregory Klump. “That reflects a weaker than previously expected growth profile for the first half of 2012, followed by an acceleration in the second half of the year.”

“The Bank reiterated that its outlook remains subject to downside risks from the sovereign debt issue in Europe. Recent credit-rating downgrades to much of the euro zone point to potential contagion by way of a drop in financial market liquidity,” continued Mr. Klump. “The bottom line is that the bank rate is not going to be going up anytime soon, and we may see rates lowered should downside risks materialize.”

The next scheduled rate announcement for the Bank of Canada is expected on March 8th, 2012.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Toronto Real Estate Board Figures For January 2012

Posted on February 6, 2012 | Leave a comment

The Toronto Real Estate Board has released its sales figures for the month of January 2012. Sales in January 2012 were almost nine per cent higher than in January 2011, with 4,567 sales compared to 4,199 sales.

“A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers condiment in their ability to achieve the Canadian goal of homeownership,” said Richard Silver, the president of the Toronto Real Estate Board, in a press release. “The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum.”

In January 2012, the average price of a Greater Toronto Area home was $463,534, which is nine per cent higher than January of last year. But according to the Toronto Real Estate Board, an increase in new listings should calm prices.

“Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year,” said Jason Mercer, the senior manager or market analysis for the Toronto Real Estate Board. “Strong price growth is expected to attract more listings. A better supplied market should result in a slower rate of price growth, especially in the second half of 2012.”

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Toronto Real Estate Board Mid-Month Resale Housing Figures

Posted on January 23, 2012 | Leave a comment

The Toronto Real Estate board has released its market figures for resale home sales during the first two weeks of January. According to their press release, home sales in the Greater Toronto Area have increased by six per cent over the first two weeks of January in 2011.

“The market didn’t miss a beat after the holiday season,” said Richard Silver, the President of the Toronto Real Estate Board in a press release, “with robust sales growth continuing and sellers’ market conditions remaining in place. Strong competition between buyers continued to push the average selling price higher in the Greater Toronto Area relative to a year ago.”

The average selling price has increased by 8.5 per cent.

“Prices were up for most major home categories in the GTA in comparison to last year,” said the Senior Manager of MArket Analysis for the Toronto Real Estate Board, Jason Mercer, in the same press release. “The strongest price growth was for single-detached homes in the City of Toronto. The average price of singles in the 416 area code was up by 22 per cent year over year, pointing to a greater weighting of higher end detached homes changing hands compared to the same time last year,” he said.

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December 2011 Stats From The Toronto Real Estate Board

Posted on January 9, 2012 | Leave a comment

According to the latest press release from the Toronto Real Estate Board, Toronto real estate sales saw their second-best year on record and sales were up overall four per cent when compared to 2010.

“Low borrowing costs kept buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said Richard Silver, the president of the Toronto Real Estate Board said in the press release. “If buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area.”

Jason Mercer, the senior manager of market analysis for the Toronto Real Estate Board, said, “Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between buyers and strong upward pressure on selling prices. TREB’s baseline forecast for 2012 is an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook.”

For the full press release, including charts and detailed price descriptions, visit the Toronto Real Estate Board website here.

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Canada’s Rental Vacancy Rate Inches Lower

Posted on December 28, 2011 | Leave a comment

According to the Canada Mortgage and Housing Corporation, the average rental vacancy rate across Canada dropped to 2.2 per cent in October of this year, which is down 0.4 per cent year-over-year.

“Modestly Higher levels of employment among persons aged 15 to 24 likely increased household formation among young adults, thereby increasing rental housing demand. This, combined with the supply of newly constructed dental apartments moving slightly lower, pushed Canada’s vacancy rate downward,” said the deputy chief economist at the mortgage analysis centre for the Canada Mortgage and Housing Corporation. “Demand for rental condominium apartments remained strong, with the vacancy rate for such units falling in most of Canada’s largest urban centres, including Toronto, Montreal and Vancouver.”

A lower vacancy rate means that there will be much more competition to get an apartment in Toronto, including condominium apartments.

The full press release from the Canada Mortgage and Housing Corporation is available here.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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As home prices in Toronto increase, consider buying a “fixer-upper”

Posted on December 21, 2011 | Leave a comment

As home prices in the Greater Toronto Area become higher, people who are looking to buy a home but find the majority of Toronto-area real estate outside of their price range may want to buy a fixer-upper, or a home that needs some work. According to the Ontario Real Estate Association, the costs involved with a fixer-upper home that needs extensive renovation work may still provide you with big savings compared to buying a more expensive home that doesn’t need work.

“Everyone wants  a house or condo that will be perfect the minute they move in so they only have to do the minimum amount of work to it,” said the president of the Ontario Real Estate Association in a press release. “But with the price of houses continuing to rise, and some buyers desperately looking for a family home in a seller’s market, it may not be an option for all buyers. Buying a property that needs work can be a way to save on the overall cost even when you factor in the cost of an extensive renovation.”

However, home buyers should weight the pros and cons of fixing up a home, and make sure they know they’ll be able to sell it for a decent price later to recoup their investment.

“It doesn’t make sense to invest $100,000 worth of renovations in a property if the other homes only sell for $50,000 more than what you bought the house for,” she said. “Buying a house that needs renovation should grow equity – not become a property that’s to expensive for the neighbourhood when you want to sell.”

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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Canadian Home Sales Better Than Expected In 2011

Posted on December 16, 2011 | Leave a comment

According to a new report, the Canadian real estate market has fared much better than was expected in 2011. And, the thriving real estate market is expected to continue much into 2012.

Average home prices in the Greater Toronto Area rose about seven per cent to $465,000, and this price is expected to increase to $488,000, or five per cent, by this time next year.

According to the report, which was released by Re/Max, the Canadian housing market is just plain resilient.

“The Canadian housing market has demonstrated tremendous resilience in recent years, but 2011 stands out,” said the report. “Instead of responding to economic concerns both here and abroad with a retreat in sales and prices, residential real estate markets actually experienced an upswing in the volatile third and final quarters.”

In Toronto, home sales are expected to grow by approximately two per cent in 2012.

This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.

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