Booming Rebound, No Bubble!

As we near the year's end (already!) BMO Nesbitt Burns came out with a great report examining at length whether the real estate market is in an actual rebound or if we are actually in a bubble.

Here is a summary of their report and my comments follow...

1. The record surge in resale volumes reflects unleashing pent-up demand.

2. Existing home sales might already be starting to stabilize, and at levels below their past peaks.

3. Double decade extreme spike in prices is less of a concern because average existing home prices are a flawed measure.

4. New home prices have begun to incrementally increase but still remain 2.7% below year-ago levels.

5. Mortgage credit growth has also been decelerating, not accelerating, and remains well below pre-crisis double-digit peaks.

6. Thus the only truly concerning aspect of current conditions in the resale market is the level of prices.

Bottom line:

Canada's resale market metrics are stoking fears of a housing bubble, but the fears for them most part are unfounded. It's not a bubble when a record sales rebound follows a massive sales collapse, owing to the vagaries of pent-up demand. It's not a bubble when prices accelerate because growing demand is butting up against shrinking supply. It's not a bubble simply because relative prices are at record heights. Furthermore, given that mortgage credit growth is moderating, and new home and land prices remain subdued, the evidence on the ground argues against a housing bubble.

My comments:

What I am seeing out there right now that I don't like is the fever of multiple offers causing buyers to grossly over pay. I advise my clients against it, even if it means losing a few offers to get to the right home at the right value.

Lack of inventory is definitely plumping things up a bit in certain market segments.

What I would like to see in the spring market to feel confident about continuous healthy growth is better inventory, which should lead to reasonable market values and better balance between sellers and buyers.

And buyers who are playing it smart, thinking long term and considering future interest rate rises when considering their purchase.

For the full BMO Nesbitt Burns report, click here.

Shop Till You Drop

Every year we struggle to think of the perfect gift for everyone.

After a lot of brain strain, here are our team's top favorite gifts to give for anyone on your list...

Personalized Stationary

It's great to give things to people that they would not otherwise do for themselves, like personalized stationary or a personalized journal.

http://www.paperthings.ca/ or www.thepaperplace.ca

Print to Canvas & Photo Books

Forget the mugs and t-shirts. Take any photo and have it printed to canvas...you can even choose a brush stroke texture and pretend you painted it. Experiment with landscape shots or images of your gift recipient's favourite place or thing and you'll look like an artistic rock star. Or take a collection of photos and have them printed into a photo book - the quality is incredible and feels and looks like a true book.

Black's Photography $20-$180 www.blackphoto.com - 2036 Queen Street East

PowerMat Wireless Charging Mat

This is so cool...

Cut the cords, and the adapters, chargers and wall plugs and toss your device onto the Powermat Wireless Charging Travel Mat to charge it wirelessly through induction.

The Source - $99.99 - www.thesource.ca - 2140 Queen Street East

For Kids - Hanging Alphabet

This laser-cut wood hanging alphabet is a fantastic find for toddlers and font-lovers.

Bookhou's $50 - 798 Dundas Street West - 416.203.2549

Improv Classes

An incredible experience and learning opportunity to push anyone's boundaries. Second City training center offers multiple formats...once a week, weekend intensives - whatever fits your gift recipient's schedule. And they offer convenient gift certificates.

http://www.secondcity.com/

If you think of anything else, comment and let us know!

Cheers,

Mark

Market Watch - October 2009

With a strong October it will be interesting to see if the momentum carries over into the new year.

Typically from here on out we see a drop in inventory as most people who are selling are doing so with greater motivation or due to external factors rather than just testing the market.

In the coming months, don't let the traditional seasonal drop in activity spook you.

Right now, we're confident that the market will sustain. Why?

• Low interest rates that will continue for the foreseeable future
• Continued pent up demand from buyers who help off earlier in the year
• Lower inventory (favouring of course sellers)
• The advantage of real estate being a stable long term investment compared to stocks and bonds...and as they say, you can't sleep under your RRSP!
• General strength of Canada's economy in the global context

The factors to watch out for will be interest rates jumps, affordability as prices are on the rise and if too much inventory hits the market at once.

Check out the complete Market Watch and comments from the Toronto Real Estate Board...

TORONTO, November 4, 2009 - In October 2009, Greater Toronto REALTORS® reported 8,476 sales, up 64 per cent from October 2008.

The average price for October transactions was $423,559 – up by 20 per cent compared to the same month last year.

"Strong sales growth has occurred across many property classes – from price ranges that would attract first-time buyers to luxury properties selling for over one million dollars," said TREB President Tom Lebour. “The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales declined at an above-average rate last year.”

Year-to-date sales, at 74,721, were up nine per cent compared to the first ten months of 2008. Average price, at $392,264 was up by almost three per cent.

"After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings," according to Jason Mercer, TREB's Senior Manager of Market Analysis. “Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year.”

Market Watch - October 2009

Mortgages - Focus on the Long Term!

Check out this great video from the Business News Network featuring Peter Majthenyi from Mortgage Architects where he discusses great strategies for managing your mortgage options and how to focus on the long term for the best savings.

Business News Network - Click Here

(interview appears after short advertisement)

To talk Peter about your mortgage, contact him today!

Peter Majthenyi AMP
Mortgage Planner
phone: (416) 236-9300 ext.11
peter@mymortgageplanner.ca

Winter Clean Up

With the transition from fall to winter upon us (thank you mother nature for the double-digit temperatures this week!), here is a reminder of things to do around the house to prepare it for the coming months.

Outside Your House

• Wash all of your windows inside and out. This will let the light pour through in the darker months.
• Store all patio furniture and outdoor toys but clean and dry them properly first. Be sure to cover them with drop sheets or even fabric sheets.
• Make sure the caulking, seals and weather stripping around all your windows and doors are in good shape and repair where needed. Be sure to wipe down window wells and ledges and hose and wipe down exterior doors.
• Drain and store garden hoses. If you have an in-ground sprinkler system, have it professionally blown out and winterized.
• Empty any ceramic planters and store so they don't freeze and crack.
• Clean out your eavestroughs and downspouts, otherwise you could have blockage when it freezes causing water to drain improperly.
• Give your garage and driveway a good clean.
• Make sure your shovels are in good shape and stock up on salt or sand for the sidewalk.

Inside Your House

• Inspect and clean your fireplace and chimney.
• Change your furnace filters for cleaner air and more efficiency.
• Replace the batteries in smoke alarms, carbon monoxide detectors and other home safety devices.
• Flip your mattress and turn it end-to-end. Clean all bedding you don’t do every week, such as mattress pads, pillows, blankets, bed skirts and bedspreads.
• Clean all your carpets.
• Clean out the kitchen cupboards and pantry - anything you haven't used since spring that is non-perishable can be donated to the Food Bank.
• Pull your refrigerator, clothes washer and dryer out from the wall and clean behind them (and retrieve any long lost socks!). Brush dust off of refrigerator coils and use a narrow vacuum hose attachment to clean inside the lint catcher of your dryer.
• Clear out summer clothing items and store to make more room in your closet. Bring out your winter clothes and donate anything you didn't wear last season.

Put your money where the return is!

Now is a good time to revisit renovations...where to invest your money, and where to avoid spending. Chances are if you're not buying or selling, you're renovating.

The Globe and Mail published a great article you can check out below.

If you are considering any renovations, give us a call - we'd be happy to help with trade referrals and design advice.

Check out the end of the article for some of our favorite trades and suppliers...

What are some renovations that add value to my home?

A good investment in a renovation should increase the value of your home by at least the amount of money you spent, or close to it. A bad one doesn’t get you much of your money back. Here are some investments that have proven to return their value, or close to it:

· Low-cost improvements that make your home look better: Painting, new wallpaper, and items like new rugs and curtains help to brighten and improve the look of a home, and add value to your house if they are done close to the time of sale.

· New or improved kitchens and bathrooms: Improvements to your kitchen and bathroom seem most likely to increase the value of your home. Keep in mind that these improvements lose value over time.

· Improvements to the living room and the master bedroom: These are also good investments and will usually return most of the money you spent, if not more.

· Investments in more efficient use of energy: Oil, gas, and hydro costs continue to go up. That’s becoming more of a concern when people are looking to buy a home. You can make your home more energy efficient as an investment in its value. Some government programs help reduce the costs of these projects. Also, consider buying appliances that waste less energy.

· Keeping up with repairs. If you do a little at a time, you can avoid doing a lot of expensive repairs at the same time. A reasonable amount to spend yearly is 1% to 2% of the value of your home.

What are some renovations that don’t add much value to my home?

· Swimming pool: Make sure you want a pool before you invest in a pool. The cost of putting in one won’t show up in the price that you get when you sell a home.

· Costly appliances: Most people won’t want to pay an extra $4,000 for your home to pay for a $7,000 refrigerator instead of a $1,200 refrigerator. If you pay thousands of dollars for top-of-the-line appliances, enjoy them. You probably won’t get your money back if you sell them with your home.

· Costly landscaping: The way your home looks from the street can really help interest buyers. It's called 'curb appeal.' But if you spend $30,000 in landscaping, don’t expect to get it all back. Most buyers probably won’t see or appreciate the value.

· Renovating in an area where homes are being torn down: Tear-down activity involves homes being sold, torn down, and replaced by bigger, more expensive homes. If someone is going to buy your home and tear it down, a renovation won’t return any of your money. The buyer will have no interest in the building, just in the land.

Remember: Don’t assume you will get all your money back from a renovation

The key to renovating is to keep the house in good repair and do the renovations you want to enjoy. If you think you might be selling in the near future, focus on renovations that are more likely to get your money back.

Thinking of renovating? Call our favorite trades and suppliers first! Don't forget to tell them Mark Richards sent you:)

General Contracting - Cole Contracting - Greg Cole: 416.471.9019 colecontracting@rogers.com

Kitchens - Paula Murphy - pmurphy@irpinia.com

Plumbing - Sean - Athletic Plumbing: 416.845.2659

Landscaping - Paul & Eleanor - Stonehenge: 416.467.6059 www.stonehengedesignbuild.com

Hardwood Floors (install and refinishing) - Mervin 416.731.4079

H1N1 Info

As the H1N1 vaccine has hit the clinics, everyone has a myriad of questions...Where to get it? Is it safe? The best thing you can do is inform yourself.

I like to keep my clients healthy so to help out I've attached links for some of the best resources on H1N1:

Globe and Mail

City of Toronto Info Centre

CBC News

Remember - wash your hands frequently!

Jenny Shops

As our resident designer, Jenny knows the best places and the best deals for your home.

Check out here recent favorites...

For a bit more selection and variety in styles than a store such as West Elm, I've been a fan of G.H. Johnson Furniture Gallery lately. Like West Elm, they usually have a lot of items in stock and any delivery lead times seem to be shorter than a lot of furniture stores.

Another treat is that this can literally be a one-stop-shop for some rooms.

They have an art gallery attached to the store with an amazing selection, and always have great bedding and accessories, including a mirror gallery.

The timing is great to shop - they have a 50% renovation sale happening right now.

They are located centrally at 950 Dupont Street between Ossington and Dufferin.

Check out their site at www.ghjohnsontrading.com.

Looking for more? Pick up the current edition of Canadian House & Home - they have a great removable shopping guide for your home.

Cheers, Jenny

Boom or Catch Up?

You may have noticed reports all over the news that real estate is back.

Home buyers who didn't take advantage of the downturn are now facing bidding wars and over-asking purchase prices. As they say, by the time you realize the market has hit bottom, it's already over.

As of the end of September, the average price in the GTA is up to $406,877, an increase of 10% compared to the same time last year. Sales activity is up 28%.

Mortgage rates continue to be historically low and inventory is increasing, but is this just a catch up from pent up demand of buyers waiting it out and sellers not wanting to list until they felt things were picking up again? Or is this just a historical seasonal peak in the year?

TREB believes this market is a sign of growth and recovery. Growing consumer confidence and financial stability, low interest rates and positive economic news are driving long term investments. They also say indicators such as growth in all categories of the market show widespread movement upward, as opposed to a trend in one particular sector.

As long as inventory keeps up with demand and interest rates stay low, as they are said to be until mid 2010, I believe we will see a steady pace right through to next summer.

But it is a funny market right now. Although there is heated competition in some price points such as the $500,000-$800,000 range, buyers are not willing to be aggressive on anything that is overpriced.

Some sellers are happy to put their home up for sale over market value just on the chance that they get that perfect bite but are driving away the potential for competitive bids by not pricing their home attractively. Buyers are shopping but are very discriminating and taking a much harder look at values, still looking to get a deal where possible.

It's kind of like a car race after an accident...people are getting back out there and going full throttle but with a cautionary foot ready to hit the brake at any sign of danger.

For more information, check out these great links and recent articles:

Check out varying opinions on the real estate market...

GLOBE AND MAIL - BACK TO BOOM

Click on this interactive map to see what is happening to values in your neighbourhood...

TORONTO HOME VALUE SURVEY

Click here for the full Toronto Real Estate Board September Market Watch...

TREB Market Watch


Cheers,
Mark
416.728.2499
mark@markrichards.ca

Where to buy - and why...

Looking to buy but not sure where? Check out the Real Estate Guide 2010 from Toronto Life.

I highly recommend you pick the guide up...even though you can check out 94 neighbourhood profiles online, the printed magazine has a thorough renovation guide with great sources for everything you need.

TORONTO LIFE REAL ESTATE GUIDE 2010

Mortgages

From the desk of Peter Majthenyi and Andre Semeniuk of My Mortgage Planner...






A Harsh But Short Recession

It appears our recession has come to an end and Canada is leading other nations on a slow climb to prosperity. After shedding more than 400,000 jobs, there will still be significant challenges to get many Canadians back to work in the years to come.

As a result, our Government has committed to keeping interest rates low until at least 2011 in order to maintain our economic momentum. Real estate appears to be one of the first sectors to be rebounding by posting an 18% jump in July 2009 alone, fueled primarily by record low mortgage rates.

Considering the Bank of Canada is in no position to increase interest rates anytime soon, the majority of borrowers are opting to tie their mortgage to the benchmark over night rate of .25%. This means taking a 5 year variable mortgage, which is currently as low as 2.4%.

Even if we factor in gradual rate increases in the future, this interest rate will still out perform the alternatives. Also keep in mind that a variable mortgage allows you to “abort” at any point for free, so you are more nimble to react to a changing interest rate market.

In most cases, we will all pay 5-6% for our mortgages over time regardless if we choose a variable or fixed right now, yet our goal is not to pay it any sooner than we have to!

The mortgage product that will dominate the 2010 landscape will be the “Mortgage & Line of Credit Combo”. This type of mortgage allows borrowers to pay their mortgage off much quicker as well as to engage in tax efficient investing.

The line of credit availability grows with every dollar paid down on the mortgage principal, with the line of credit hopefully leveraged only to invest in appreciating assets. This growing line of credit allows all of one's income to be used to pay down mortgage principal while never leaving one short of cash.

In the past, we'd often have thousands of dollars sitting in our chequing account earning very little interest and not working for us, while with this growing line of credit at 3.25% we will always be prepared for unexpected situations.

In order to secure this type of financing package, the borrower must have good income and credit, as well as at least 20% equity … eventually every homeowner will end up in a mortgage of this nature because there is absolutely no down side, and it is a key tool to create personal net worth much quicker.

Financial literacy includes understanding your “Mortgage Plan”. We welcome you to call us soon for a complimentary assessment of maneuvers you can implement now to ultimately build your personal wealth sooner … the cost of procrastination can be significant.

Here's to a healthy fall market.


Anytime,
Peter & Andre

Home Renovation Tax Credit

You've likely heard of the Home Renovation Tax Credit (HRTC). Here are the details you need to know if you're going to take advantage of this great incentive...

For renovations done between January 28, 2009 and February 1, 2010, you can claim a 15% credit against renovation expenses after the first $1,000. The maximum tax credit is $1350 which represents $9000 worth of renovations.

Renovations must be to any dwelling that you own and use personally, or is used by a spouse or child. Eligible dwellings include a cottage, provided it is for personal use.

Rental properties are not eligible, but you may qualify for the credit if, for example, you renovated the personal use areas on a house that is your principal residence but which contains a rental unit.

For expenditures made for common areas or that benefit the housing unit as a whole (such as re-shingling a roof), you must divide the expense between personal use and income-earning use.
Here are the renovation expenses that qualify:

- renovating a kitchen, bathroom or basement,
- building an addition, deck, shed, or fence,
- new carpet or hardwood floors,
- installing a new furnace, fireplace or water heater,
- re-shingling a roof, a new driveway or resurfacing,
- painting (interior or exterior)
- permanent swimming pools, sodding or some landscaping.

The renovation must be of an enduring nature and integral to the dwelling, and can include the cost of labour and professional services, building materials, fixtures, rentals, and permits.

Furniture, appliances, electronics, or tools, are not eligible for the tax credit. Routine repairs, maintenance and cleaning normally performed on an annual or more frequent basis are also not eligible.

The tax credit is family-based; one tax credit is available per household. If two families share the same home (as co-owners, not renters), then both are eligible for separate tax credits. The tax credit can be applied to the tax return of either spouse.

Most home have received a green envelope on their door to keep all required documentation which includes agreements, invoices, receipts, and cancelled cheques.

You should also check out the ecoENERGY retrofit program if you plan to do any renovations that will save energy.

For more details on the government websites, click below...

HOME RENOVATION TAX CREDIT 2009

ecoENERGY PROGRAM

Stop the Smell!

With city workers on strike, it can be frustrating not knowing
exactly what services are and are not availble.





I've had buyers who want to purchase a home but can't find out if they are eligible to put in a parking pad. You can't get a building permit to start renovations. And yes, the smell and sight of garbage is starting to grate on everyone.

Check out this City of Toronto link for current updates and status of all services, as well as where you can take that stinking garbage.

Am I ever glad I don't advertise on garbage cans :)

How the Strike Affects City Services

Markets & Mortgages

Markets

Even thought kids are out of school and people are in the mindset of summer vacation, the real estate market didn't get the message!

The GTA resale housing market just had the best June on record, Ontario saw a 15% increase in building permits, and interest rates continue to be a huge motivator.

Check out the full report and commentary from the Toronto Real Estate Board below as well as the full Market Watch report for prices and activity in your neighbourhood..





GTA Resale Housing Market Posts Best June on Record


TORONTO, July 6, 2009 - In June 2009, Greater Toronto REALTORS® reported a record10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.1

"The record result in June is testament to the fundamentally sound housing market in the GTA," said the Toronto Real Estate Board’s newly appointed President Tom Lebour.

"An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market."

The average price for June transactions was $403,972 – up by two per cent compared to the same month last year.

"The re-emergence of seller’s market conditions has exerted upward pressure on home prices," explained Jason Mercer, TREB's Senior Manager of Market Analysis.

"Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing."

City of Toronto ("416") 2008 to 2009 Snapshot:

2009 # of sales: 4,362
average price: $441,703

2008 # of sales: 3,481
average price: $433,082

Click here for the full Toronto Real Estate Board Market Watch.


Mortgages







From the desk of Peter Majthenyi and Andre Semeniuk:

With fixed mortgage rates being so low, why would I go variable?

I have been listening to many borrowers struggle with the fixed vs. variable dilemma for quite some time.

The challenge is to keep in mind that most of us will have a mortgage for 15-20 years and not just for the next 5 years. It is important to not fixate on the current mortgage rate, but rather consider the long-term interest you will pay.

Choosing 5 year fixed or 5 year variable … we will likely pay a higher rate in the future regardless. Currently variable is about 1.5% less than a 5 year fixed term, so what's your rush to pay 1.5% more? This is a lesson in not paying any sooner than we have to!

A variable rate is about saving thousands of dollars in the first years of a mortgage, allowing our money to be better leveraged in the short run, for instance to increase savings or provide cash resources.

Our ambition is to keep our hands on our money as long as possible before we have to forfeit it to the lender. Ideally, the best strategy is to direct these funds to the mortgage principal immediately considering the first few years of a mortgage is primarily interest.

Variable rate mortgages are based on the Bank prime rate that is dictated by the Bank of Canada, which has committed to not changing it for at least another year.

Once our economy begins to show signs of sustained recovery we can expect this rate to increase, which is typically adjusted by .25% a couple of times a year.

The Bank of Canada only meets 8 times a year and is reluctant to change these rates upward frequently and, when they do anticipate changes, they are well publicized in advance and therefore are quite predictable.

If you are considering a traditional 5 year fixed term then you are most likely concerned about rates rising significantly in the future. If so, you should consider this; if 3 years from now rates start to skyrocket you will very disappointed that you are in a closed mortgage and cannot convert prior to renewal. Fixed mortgages require you to wait until maturity before considering new mortgage options and by then it's usually too late.

A variable mortgage allows you to convert to another mortgage at anytime with no penalty. This convertible safety net is what we all want so we avoid future disappointment, especially considering we are not paying our mortgage off anytime soon.

It is financially prudent to try to avoid being locked into any financial product because flexibility is your savior to paying less interest. I can tell you that anyone you know who currently has a mortgage problem is most likely in a fixed term.

Chances are, once you have a variable mortgage you will leave it variable until the day you pay your mortgage off and never consider a fixed mortgage again. However, if you are simply terrified of significant future rate hikes and feel current mortgage rates are very suitable for your budget and tolerance, than please consider a fixed term of 10 years or longer.


The Power of the "Mortgage and Line of Credit COMBO!"

Those that have good equity, good income to mortgage ratios, and acceptable credit should consider nothing else than a "Mortgage & Line of Credit Combination". This product is the future of mortgages and attaining financial independence sooner.

Currently, only about 6 of 52 mortgage lenders carry this product line, but in the coming year or so they will all need it in order to stay competitive. There are no premiums or additional cost to set up or maintain a "Mortgage Plan" like this.

This mortgage package is an excellent vehicle to help pay your mortgage off much faster, while never having to approach a lender again for any future financing requests. Used correctly it is likely the most powerful weapon in your financial arsenal.

Briefly, as you pay your mortgage principal down the credit limit on your secured line grows and becomes available immediately. And currently, the interest rate is 3.25%. This mechanism allows borrowers to direct all their savings and income to paying the mortgage principal down while never leaving them short of cash, allowing their money to work far more efficiently.

This popular line of credit product is also paramount for those that want to engage in tax-efficient investing (The Smith Manoeuvre). To learn more, we should connect to explore if this is a program available to you, or someone you know.

Please introduce our material to anyone you may want to empower with the most current mortgage information that Banks often neglect to share with us.


To connect with Peter today, go to http://www.mymortgageplanner.ca/

Jenny Shops!

As our resident designer, Jenny helps our clients maximize the value of the homes when they are selling and helps make the most of the homes they buy through her design expertise.

That means a lot of shopping!

Clients often ask where they can find great furniture, accessories, and the best deals for home improvement supplies.

Check out her favorite sources, suppliers and stores, featuring West Elm this month.

Want to know where to find what you're looking for? Just ask!

jenny@markrichards.ca


GREAT DEALS: BB Bargoons July Clearance Sale

10 Days only - July 9th-19th Keele Location

BB Bargoons is having their semi-annual clearance sale and marking down premium quality select fabric, furniture, decorative accessories and drapery at up to 75% off. Look for brand names such as Beacon Hill and Robert Allen at ridiculously low prices.

http://www.bbbargoons.com/










THIS MONTH: Great Style, Great Value, and Great Stock!





As someone who often needs to buy furniture and accessories 'yesterday', I have truly come to appreciate West Elm.

Anyone who has been excited to find the perfect piece for their home, only to find out it will take 4-10 weeks for delivery knows what I'm talking about.

Located in Liberty Village, West Elm is a sister company to Pottery Barn but with a more contemporary, zen style (think more Crate & Barrel).

They offer a great selection of furniture, as well as the full spectrum of accessories.


For the decorating-challenged, their products all coordinate and flow together, tending towards calm neutrals and playing with textures. They have a great core of basic pieces but with a nice side of unique, funky suprises as well.




The quality is good, prices fall around the halfway mark between Ikea and Pottery Barn depending on what you're looking for. Not to mention the great sales they offer.




The best part? They have a massive warehouse so most items can go home with you or delivered within a couple of days.

Their staff is unbelievably helpful and friendly without being overbearing and can really help you pull a room together or track down a piece that will fit.


You cannot order online for delivery in Canada but they carry pretty much everything you see on the U.S. site in their Toronto store.

Enjoy shopping!
- Jenny

http://www.westelm.com/

Markets & Mortgages

May 2009 Market Watch

It's been a hot spring market as evidenced by a two percent increase in activity from May 2008!

I believe this has been a result of pent up buyers who have been holding off until the market softens but have other reasons motivating a purchase other than just price. It's also a result of incredibly cheap money.

Check out the full report and commentary from the Toronto Real Estate Board below..







GTA May Resale Housing Sales Higher Than Last Year
TORONTO - June 2, 2009

In May 2009, Greater Toronto REALTORS® reported 9,589 sales, up almost two percent from May 2008 – the first annual increase since December 2007.

The seasonally adjusted annual rate of sales in May was 81,300. “The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill.

“Many home buyers have taken advantage of extremely low mortgage rates.”

The average price for May transactions was $395,609 – down less than one per cent compared to the same month last year.

“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis.

“Home sales have increased strongly relative to new listings, bolstering home prices.” Seasonally adjusting TREB MLS® data removes recurring seasonal trends observed each year.

For example, MLS® sales are highest in late spring each year and lowest in the winter months. Removing the recurring seasonality, allows for the analysis of a meaningful trend reflecting actual changes in market conditions.

By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how the current month relates to historical annual figures.

Click here for the full Toronto Real Estate Board Market Watch.


Mortgages

Rates have inched up...but still great historically speaking according to Peter from Mortage Architects...






"It appears commodity prices are rising, as well as the Canadian dollar. Now we can expect a slow and gradual rise in mortgage rates to more normal levels .... keeping in mind that all these rates are historically amazing!

A quarter percent here or there on your mortgage should not influence you to not buy or refinance now ... 2009-10 is likely the best time to make your "Mortgage Move" considering the odds are very very low we'll have these kind of borrowing rates in our life time again.

Be sure your "Mortgage Plan" is reviewed now regardless of your situation to ensure there's no regrets at renewal time. We are here to help you and your friends with that assessment, where Banks are not."

The sooner the better - Peter & Team

Check out current Posted Rates and his Best Rates....

Posted Rates*

6 mth - 4.75%
1 Year - 3.9%
2 Year - 4.05%
3 Year - 4.15%
4 Year - 4.84%
5 Year - 5.45%
7 Year - 6.30%
10 Year - 6.80%

Best Rates*

6 Mth - 4.25%
1 Year - 3.29%
2 Year - 3.5%
3 Year - 3.15%
4 Year - 3.69%
5 Year - 3.75%
7 Year - 5.10%
10 Year - 5.19%

Variable Rate 2.65%
Prime Rate 2.25%

*Interest Rates are provided for information purposes only and are subject to change at any time without notice. The products listed above are available only in Canada to Canadian residents. Rates shown are for single family residential properties only and are subject to meeting all lenders credit granting criteria. Rates shown above may be specific to the sender and some conditions may apply. E&OE.

Another Sleepless Night

Having been in the business a while now, I like to tell my clients what they can expect as honestly and realistically as possible.

The other night, I was talking to a couple who were preparing to put an offer on a property the next day in a multiple offer situation. I warned them they may not sleep well, or not at all.

When we're getting a home prepared for sale, there are a lot of deadlines, things to do, changes to make and of course the emotional upheaval of letting strangers into your home and moving on. I warn clients that they may hate us at times in this process, and that's ok.

Circumstances sometimes force people to be in one or both of these situations, but most of the time it's for great reasons.

No matter what the scenario, I get to see people at their best and their worst.

Here is what I've learned and how you can deal with the stress of selling and buying, and maybe life in general.


1. Even though it feels like it at the time, things are not as bad as they seem.

When your primary focus is buying or selling a home, it can become all-consuming. So when one thing happens that is not in your control, it can feel like a gargantuan problem.

When we were selling our own home, my wife was trying to get my daughter and our dog out of the house. My daughter had a complete meltdown, wailing on the threshold of the front door while the dog kept running back inside. Meanwhile, the agent and his buyers were on their way up the front steps for a showing.

I received a phone message that I can't repeat but she now looks back and laughs at the situation and realized that it was just 10 minutes of hell because she didn't give herself enough time to leave.


2. Things really do work out the way they were meant to.

If an offer isn't accepted on a home, a buyer is just one step closer to geting the right one. It doesn't feel like it at the time, especially when part of the buying process is envisioning yourself and your life in a home, only to have it taken away if it doesn't work out.

But when you sit back and enjoy that first glass of wine in your new house, you'll know it all worked out for the best.


3. Everything feels personal, even thought it's not.

When buyers are offering on your home and don't give you the price you want (right away :) it's not becauase they are trying to hurt or offend you, they are just trying to get the best possible deal for themselves.

Same thing goes when someone rejects your offer. That's what agents are for...to be more neutral so that they can see the strategy and plan the next move, not get ticked off and react emotionally.

I learned that when selling my own house - even though I am an agent, I didn't have that advocate to buffer the emotions and it definitely impacted me.


4. Sometimes, emotions will overwhelm you.

Selling and buying a home is usually related to a major life event. Your family is growing, you have changed jobs, your kids have left home.

It also means leaving a home that you may have a big emotional attachment to. Perhaps your kids were born there, or it was your first home as a married couple.

Whatever the reasons, there is a lot of emotional baggage that comes with moving. Don't let it creep up on you. Acknowledge that it's a milestone and let it go.


5. Second guessing is bad.

Because a lot is at stake, many people start second guessing their decisions and let the advice of poeple who are not necessarily professionals sway them against their gut instincts and the advice they are getting from those who are in an educated position.

I give my clients what my opinion is based on being in the market every hour of the day, and my understanding of what they are trying to achieve. But I also tell them that they have to be 100% comfortable with any decisions they make as ultimately they are the ones who will be living with the outcome. That covers everything from when to buy, what to pay, how much to sell for and when to make a move.

Be comfortable with your decisions but make sure they are not clouded by emotion, greed, or your good old uncle who suddenly becomes a real estate expert. And trust your real estate agent. :)

Our Newest Feature - Jenny Shops!

Welcome to our new feature - Jenny Shops!

As our resident designer, Jenny helps our clients maximize the value of the homes when they are selling and helps make the most of the homes they buy through her design expertise.

That means a lot of shopping!

Clients often ask where they can find great furniture, accessories, and the best deals for home improvement supplies.

Now, each month we're going to feature Jenny's favorite sources, suppliers and stores.

Want to know where to find what you're looking for?

Just ask!

jenny@markrichards.ca


BIG DEALS:

Located in the Beach, a great garden and outdoor accesory store Cool, Green and Shady is having a 40% off sale as they are moving to Kingston Road in a few weeks. Check them out for stunning laterns, gardening supplies and great planters.


Cool, Green and Shady
2012 Queen Street East (Across from Kew Park)
416.699.4004


THIS MONTH: Patio Season

With summer and the hot weather just around the corner, everyone is thinking outside the house. After scouring the city for quality, value and style I found Southport Home.

Whether you are looking for a contemporary look or a more traditional feel, this store offers a lot of options at either end of the spectrum.

Here is why they are different from a lot of other patio furniture stores.

Value
They offer all-season wicker with Sunbrella fabric for half the cost of other designer stores with the same look and quality. They also don't charge extra for removable fabric with zippers!

Speed
Many other suppliers will take 4-8 weeks on average because they have their cushions made off-site. Southport Home has an in-house seamstress and a massive on-site warehouse so you can get most items within 1-2 weeks.

Customer Service
The staff are great...friendly and knowledgable. They deliver when they say they are going to deliver and offer full assembly and placement.

Check out their site for products and contact info at http://www.southporthome.ca/

Yard Sale for the Cure - May 30th!

On Saturday May 30th, founding partner RE/MAX is sponsoring ‘Yard Sale for the Cure, a one-day event that brings neighbourhoods across the country together for a massive yard sale in support of breast cancer research and patient care.

The event, which provides homeowners a unique opportunity to clear clutter and unload items no longer in use while simultaneously raising finds for breast cancer, is the natural evolution of RE/MAX’ involvement with the Canadian Breast Cancer Foundation -- Ontario Chapter.

RE/MAX has been instrumental in programs such as Primary Prevention Research and Breast Care and Health in Ontario since 2004.

Please join us in our fight against breast cancer by holding a yard sale or shopping for bargains and treasures on May 30th, 2009.

Interested homeowners can register on line at http://www.yardsaleforthecure.com/ to get a Yard Sale for the Cure kit.

Kits are available for $20.00 and includes a lawn sale sign, hat, posters, pink balloons and information package. One hundred per cent of funds donated will support breast cancer research and patient care.

Only by working together will we find a cure for breast cancer.

Casting Call for Pure Design Room Makeover!

Do you have a room in your home that could use a makeover while being eco-conscious?

Pure Design is hosted by the fabulously creative Samantha Pynn, design editor for "Style at Home" magazine.

Hip and stylish with a passion for eco-friendly design, Samantha creates the ultimate in living spaces that both reflect and stimulate your life, while being mindful of reducing our carbon footprint when possible.

Samantha and her design team combine style with sustainability, while using innovative designs to transform a room from dated to divine, into a space that is livable, functional and purely beautiful.

If you are a home dweller who…

- Owns your own home (no renters please)
- Is upbeat, outgoing and between 25-49 years of age
- Has a space that could use Samantha’s help (space should be at least 15 x 15 square feet)
- Is interested in renovating the space between May-August 2009
- Lives inside Toronto’s core (not the outlying GTA)
- Can contribute a minimum of $5000 toward the makeover

...they’d love to hear from you.

Please email the following information to puredesign@omnifilm.com:

- A brief description about yourself, other members of your household, and your lifestyle
- Tell us about your home and its character (Please include photos)
- How would you describe your style?
- Describe the room that could use improvement (please include photos).

- Why has this particular room caused you design grief?
- What is the size of the room? (This room should have two entrances for filming purposes and be at least 15 x 15 feet).
- Contact info (phone and email)