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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Canadian Real Estate Association Updates Website

Posted on December 14, 2011 | Leave a comment

The Canadian Real Estate Association has introduced a newer version of its website to make it easier for users to find what they need easier and faster.

Realtor.ca now has:

- Collapsible panels that allow you to customize your map search page.
- a freeform map drawing tool, where you can physically draw your own search area on the map to find properties in a more specific area that is better suited to your needs.
- better sizing options so that the website can be seen better on larger, HD monitors.
- social media sharing options, which allow real estate agents to share links on their Facebook, LinkedIn or Twitter pages.

For more information including detailed tutorials, visit the original Canadian Real Estate Association 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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Most Torontonians Want Land Transfer Tax Repealed

Posted on December 11, 2011 | Leave a comment

The Toronto Real Estate Board recently presented the results of a poll on the Land Transfer Tax to the City.

“TREB supports the recommended 2012 budget because it continues the process of bringing fiscal sustainability back to City Hall, said Richard Silver, the president of the Toronto Real Estate Board, in a press release. “However, while we support the direction of this budget, we are pointing out that it does not begin the process of fulfilling Mayor Ford’s commitment to repeal the Toronto land Transfer Tax in 2012. This is a commitment that is strongly supported by Torontonians.”

The Toronto Real Estate recently conducted a poll, finding that 65% of Torontonians supported the Land Transfer Tax repeal, while 57% still did even considering the city’s budget issues.

“Notwithstanding the difficult decisions that City Council has faced with regard to the budget, Torontonians understand the Land Transfer Tax is part of the problem because it unfairly forces home buyers and business owners to pay more the their fair share, costing the average Toronto home buyer more than $6,000 every time they move; it is an unpredictable revenue stream that goes up and down with the real estate market; and it makes the City less competitive than other GTA municipalities,” Silver added. “The Land Transfer Tax is simply a band air that has delayed the true solutions to the City’s financial challenges.”

“Toronto businesses face the highest commercial and industrial property tax rates. Making business property taxes more competitive will allow the property tax base to grow, providing long-term, reliable revenue, which ultimately, will benefit residents by relieving pressure on existing taxpayers and improving quality of life in Toronto and the entire GTA by keeping people and jobs close together, thereby reducing traffic congestion,” he added.

The full press release and poll results are 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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Toronto Real Estate Board Resale Market Stats For November 2011

Posted on December 7, 2011 | Leave a comment

According to the Toronto Real Estate Board’s latest press release, resale home transactions increased by 11 per cent in November 2011 over November 2010, to a total of 7,092 sales.

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

The number of new listings also increased by 14 per cent when compared to November of last year.

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

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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October 2011 Housing Starts Decrease Slightly

Posted on December 1, 2011 | Leave a comment

In October 2011, the seasonally adjusted rate of housing starts decreased from the 208,800 units in September, to a slightly lower number of 207,600 starts.

“Housing starts posted a slight decline in October due to a decrease in single-detached starts in urban centres,” said the deputy chief economist at the Canada Mortgage and Housing Corporation’s Market Analysis Centre, Mathieu Laberge, in a press release. “Urban multiple housing starts remained high in October, but overall housing starts are expected to moderate in line with demographic fundamentals.”

In Ontario, the seasonally adjusted annual rate of urban housing starts decreased by 11.7 per cent in October.

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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Housing Affordability Improves Across Canada

Posted on November 30, 2011 | Leave a comment

According to the latest Housing Trends and Affordability Report by RBC, housing affordability has improved modestly across Canada.

“Elevated uncertainty relating to the European sovereign-debt crisis and the downside risk for economic growth have contributed to keeping interest rates at low levels,” said the senior vice president and chief economist at RBC, Craig Wright. “The lower interest rate environment – which also includes mortgage rates – has played a part in slightly reducing the costs of owning a home in Canada in the third quarter.”

While home prices in the Greater Toronto Area continue to increase, Vancouver has become the least affordable area in Canada to own a home.

“Housing affordability levels are quite good in most parts of Canada and will pose little threat to overall housing demand,” Wright added. “The Vancouver-area market continues to be a major exception, with sky-high property values in upscale neighbourhoods making it both extremely unaffordable and the most at risk of a downward correction.”

In Toronto, RBC’s housing affordability measure increased by 0.1 percentage points to 52.1 per cent.

“We expect to see further slowing in the pace of home price increases next year, as housing demand levels out,” Wright said. “These factors will set the stage for a period of relative stability in affordability trends in Canada.”

This measure is based on the costs of owning a detached bungalow, which is considered a decent property benchmark to use to make determinations on Canada’s housing market. This percentage indicates the amount of a homeowner’s pre-tax income that is taken up by housing costs (including property taxes, mortgage payments and utilities). The higher the percentage is, the more expensive owning a home in that city is.

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Canadian Real Estate Association Updates Housing Forecast

Posted on November 24, 2011 | Leave a comment

The Canadian Real Estate Association has revised its initial housing forecast for 2011 and 2012, giving the rest of 2011 a slight boost despite growing economic uncertainty.

“The continuing strength of home sales activity in the face of ongoing financial market volatility speaks volumes about the confidence of Canadians in our housing market,” said the president of the Canadian Real Estate Association, Gary Morse, in a press release. “Interest rates look like they’ll remain low at levels that are friendly to the housing market for some time to come, and that’s good news for Canadian home sales activity and the overall economy.”

For the remainder of 2011, the Canadian Real Estate Association has predicted home sales will rise by 1.4 per cent, up from the previously predicted 0.9 per cent. In 2012, the association expects a 0.5 per cent decline.

“A number of factors will keep Canada’s housing market in check as interest rates remain low,” said the chief economist for the Canadian Real Estate Association, Gregory Klump. “These include tightened mortgage regulations, high household debt levels, together with slower economic and job growth. That said, with global economic growth expected to remain fragile but positive, employment levels and income growth in Canada should remain supportive for the market.”

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’s Mid-Month Resale Housing Market Numbers

Posted on November 23, 2011 | Leave a comment

The Toronto Real Estate Board just released its latest press release on the Greater Toronto Area Mid-Month Resale Housing Market.

Home sales in Toronto increased yet again during the first two weeks of November, with 3,379 resale homes sold. This is a 13 per cent increase over November last year, and new listings also increased by 16 per cent during those two weeks year-over-year.

“The results for the first two weeks of November point to two important facts: First, despite Global economic uncertainty, buyers have remained confident in the affordable housing market in the GTA,” said Richard Silver, the president of the Toronto Real Estate Board. “Second, stronger growth in new listings means that it is becoming easier for buyers to find a home that meets their needs,” he said.

“Little or no movement is expected for mortgage rates through 2012,” said Jason Mercer, the senior manager of market analysis for the Toronto Real Estate Board. “Low rates coupled with the consensus outlook for continued economic growth next year suggests that homes will remain affordable in the GTA and households will remain confident in doing deals. Look for the average selling price to advance to the $485,000 mark next year.”

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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