Inside Toronto Real Estate

The Ultimate List

2010-07-29T08:07:00.001-07:00

We uncovered this great resource guide on Canadian House and Home's website. It may take a while but check it out!

The ultimate list of online decorating destinations, sites and blogs — in alphabetical order — as chosen by House & Home editors.

247reno
Follow a real-life home renovation, from the powder room to the porch to the basement.

ABCD Design
Amy Beth Cupp Dragoo blogs from New York City about interiors, shopping, recipes and travel.

Absolutely Beautiful Things
A daily inspiration journal from Australian interior designer, Anna Spiro.

All the Best
Texan Ronda Carman interviews design icons and global tastemakers from her new set-up in the U.K.

An Aesthete's Lament
A blog to inspire readers to live with more personal panache: whoever they are, whatever their income, and wherever they live. Décor, art, fashion and architecture just scratch the surface.

Apartment #34
A communications guru by day, Erin is a "girl about town", lover of fashion, ogler of design, and blogs from Seattle about her favourite treasures, finds and inspirations.

Apartment Therapy
Helping people make their homes more beautiful, organized and healthy by connecting them to a wealth of resources, ideas and community online.

Arren Williams Design Lab
The blog of freelance stylist and House & Home contributor, Arren Williams.

Art Moco
A modern and contemporary art blog.

Atmosphere Randoms
An interior design firm branches out to blog about their projects, products and the latest trends.

Aubrey + Lindsay
A Toronto couple shares their plaster and dust-filled home renovation process.

Black*Eiffel
Graphic designer Rachel Jones writes about design, style, and anything that inspires her.

Bryn Alexandra
Charlotte, N.C.-based Bryn Dunn works as an interior decorator by day and blogs about all things stylish by night.

Cafe Cartolina
A collection of art and inspiration, including crafts, accessories, furniture and interiors.

Charlotte Moss
Tête-à-tête delves into the inspirations behind the New York-based designer and author.

The City Sage
After jumping around North America, Anne settled down in New York City to blog about fashion, design books, interiors and other inspirational blogs.

Cobi
Former House & Home editor-in-chief Cobi Ladner shares what she's been up to since venturing out on her own.

coco+kelley
Seattle stylist Cassandra LaValle shares stunning interiors, fashions and tabletops.

Creature Comforts
A blog by Ez, a lover of style and design in all its many forms.

David Netto Design
Features contemporary design images and the NettoCollection.

Decor8
Fresh finds for hip spaces.

Decor Addict
Interior decorator Trina Brandon posts interviews with local Canadian designers, hot new stores, products and trends.

Decorology
A blog about interior design, home decorating, and all manners of design in general.

Department of the Interior
Jenn shares her picks for "fine living" — interiors, accessories, trends — from Washington, D.C.

The Design Agency
Allen Chan, Matthew Davis and Anwar Mekhayech comprise the Toronto-based design firm, whose chic interiors and furniture designs have us browsing their website regularly.

Design Milk
A modern design and architecture blog by Jaime Derringer, who also produces Art Milk and Dog Milk.

design*sponge
A daily website dedicated to home and product design run by Brooklyn-based writer Grace Bonney.

Design Therapy
New York City interior designer Brad Ford blogs about his favourite images, products, designers and art.

DesignTies
Two Canadian gals who demo, paint, tile and write all about their adventures in interior decorating and remodeling.

Desire to Inspire
Kim, from Ottawa, and Jo, a former interior designer, source inspiring rooms on the web and showcase their mutual passion for all things beautiful.

Door Sixteen
A New York renovation, homemaking and design blog.

Eddie Ross
A former editor at Martha Stewart Living, Eddie Ross retreated to upstate New York to write about styling, flea markets, vintage finds, entertaining and decorating.

Elements of Style
Interior and fashion stylist Erin Gates offers inspiration in fashion, interior design and pop culture.

Emma's Designblogg
Design and style from a Scandinavian perspective.

Etsy
The place to buy and sell all things handmade.

{frolic!}
Photographs of flowers, interiors and pretty parties compiled by Chelsea, a stylist in Portland, Oregon.

Gaelle le Boulicaut
Photographs of stunning European interiors.

Gemma Comas
Romantic and whimsical interior shots and inspirations from the New York City photographer.

G. P. Schafer Architect
A New York City firm with a website full of inspirational interiors. Their style is rooted in tradition and ties the timeworn character of old homes in with functional everyday design.

Habitually Chic
Glamorous lives and stylish places.

HGTV Canada
Advice on decorating, entertaining, real estate and renovation.

Igloo Design
Montreal's commercial, residential, restaurant and hotel design firm posts their latest inspiration.

Ill Seen, Ill Said
Born and educated in Ireland, Jane Flanagan moved to Toronto in 2003 to pursue online writing and spread her passion for design, fashion, and black and white photography.

The Inspired Room
From a small town in Washington, freelance writer Melissa Michaels blogs about decorating ideas, homemaking tips and DIY projects.

It's Great to Be Home
Dallas real estate duo Liz and Jason Haynsworth pursued their passion of flipping homes and are now on to their second renovation. Follow their progress as they blog about real estate, design and DIY projects.

Just Beachy
The free-spirited blog of designer and DIY diva Christie Kauffman of CK Interiors.

Katy Elliot
A former web editor at Domino, Katy Elliot blogs about the renovation of her home in Maine, along with design inspiration, products and recipes.

Kitka Design Toronto
Juli and John's blog on home-related design spaces, places, people and things.

Lake Jane
A fun, Montreal-based blog for curious at heart, girly-girls, procrastinators, nail biters and eternal dreamers.

Little Green Notebook
Jenny Komenda started blogging about home décor and DIY projects, and received such great feedback from readers that she started up her own decorating business, Pearl Street Interiors.

Making it Lovely
Nicole Balch’s blog on the transformation of her Oak Park, IL bungalow.

Meade Design Group
Victoria-based Ivan Meade juggles a multidisciplinary design studio while uncovering new eye candy each week.

Muriel Brandolini
Features the work of one of New York's most sought-after designers.

My Notting Hill
A Washington, D.C.-based management consultant by day posts inspiring interior shots and stand-out home accessories in her spare time.

Nate Berkus
Site of the designer, author and host of The Nate Berkus Show and Oprah’s Big Give.

New York Times Art & Design
The latest news on influential artists, designers and shows.

Oh Joy!
Inspiration, design, style and other cool things from New York graphic designer and blogger Joy Deangdeelert Cho.

Ouno Design
Vancouver designer Lindsay Brown wanders outside the mainstream design scene with unexpected, unstuffy and unique inspiration.

Patricia Gray
This Vancouverite is one of the country's big-name designers, with awards and celeb clients including John Travolta. She writes about what's hot on the design scene, new trends, architecture and travel.

Paul Costello
Design photography featured in Town & Country, Domino, Elle Decor, Vanity Fair, InStyle, and Condé Nast Traveller.

Paul Massey
Modern and eclectic interiors shot by the acclaimed U.K. photographer.

The Peak of Chic
Atlanta-based Jennifer Boles blogs about vintage design, entertaining and style secrets.

Pia Jane Bijkerk
The stylist, photographer and author blogs from Sydney, Paris and Amsterdam about interiors and food.

Poppytalk
A Canadian design blog collecting inspiration and promoting emerging design talent.

Poppytalk Handmade
A monthly online street market curated by Poppytalk to showcase, buy and sell handmade goods of emerging design talent from around the world.

The Purl Bee
Purl, the New York City knitting store, also publishes this online craft journal with original knitting, sewing and crafting patterns.

Rambling Renovators
A design-savvy couple — he an architect, she a wannabe designer — show how eager they are to put their DIY skills to use with the renovation of their old Toronto home.

Remodelista
For interiors aficionados who share the same design DNA: a genetically encoded aesthetic.

Restyled Home
From New Glasgow, N.S., come the design musings and finds of stylist Linda MacDonald.

The Selby
Todd Selby, a fashion and interiors photographer, offers an insider's view of creative individuals in their personal spaces. Selby has even published a book of his photography, The Selby Is In Your Place (2010 Abrams).

Sfgirlbybay
Bohemian modern style from a San Francisco girl.

Shelterpop
Diane Davis, former lifestyles editor for The Associated Press, leads a team of design editors to cover everything from home tours and room-by-room design to gardening and storage solutions.

S. R. Gambrel
Architect Steven Gambrel's country houses, beach havens and urban interiors reflect his classic sensibility and flair for mixing modern and traditional furnishings.

Style Court
A blog by Courtney Barnes, with a focus on interior design, decorative arts, books and art history.

The Style Files
The Netherlands' Danielle de Lange blogs daily about design and (life)style.

styleNorth
Founder Christopher Jones corrals a small staff of contributors to share home tours, high/low comparisons and new and vintage finds.

{this is glamorous}
A Toronto-based blog about design, fashion and lovely things.

Tiny.K
A blog featuring a daily dose of gorgeous interiors.

Tobi Fairley Interior Design
Arkansas-based Tobi Fairley's work has appeared in House Beautiful and blogs across the U.S.

Tom Dixon
The British design firm's website is full of inspiring interiors, custom furniture and lighting.

Tom Scheerer
The New York City interior designer creates livable spaces with carefully arranged furniture and eclectic antiques in what he terms a "relaxed modern" style.

TreeHugger
A site dedicated to driving sustainability mainstream. Partial to a modern aesthetic, they strive to be a one-stop shop for green news, solutions, and product information.

Twig Hutchinson
Beautiful and atmospheric photographs propped by a renowned London stylist.

Urban LifeStyle Decor
Chicago blogger Susan Rapp writes about furniture finds, eco-friendly decorating and tips for the most stylish of urban dwellers.

Wallpaper
A decorating enthusiast blogs about all things stylish, fashion and DIY home décor.

Windlost
An engineer by day, blogger by night, Terri Price shares the evolution of her Calgary home.

You Grow Girl
Eco author Gayla Trail offers tips for novice gardeners and sets out to redefine the relationship between the modern urban world and organic gardening.

Young House Love
A cute young couple tackles a middle-aged bungalow (and their own backyard wedding) on a shoestring.

Go WEST my friends!

2010-07-29T06:45:00.001-07:00

We finally have a west-ender on our team, Martin Stothard. While talking about our impending home build he let us in on a great trend happening in the Junction (think Dundas and Keele).

Great stores offering items from architectural salvage and vintage finds have been popping up all over that neighbourhood.

If you are restoring a home or simply want to inject some character and originality into your home, check out some of these great stores...

(just click on the store names to see their websites)

Cheers,
Mark

Smash!
2880 Dundas Street West, Toronto

Smash is a Toronto-based store and gallery that specializes in industrial and architectural salvage and contemporary art and design.

Metropolis
2989 Dundas Street West

Metropolis Living is a home décor store devoted to industrial loft-style living. They collect salvaged materials, recondition them for sale, or repurpose them into signature pieces.

They also carry a small selection of exceptional reproductions with an industrial edge, and do custom work for specific requirements.

Post and Beam

2869 Dundas Street West

This soaring salvage shop in the Junction offers architectural antiques gathered at auction houses, demolitions, estate sales and on country jaunts, and many come with detailed provenance tags. Styles include the traditional and the quirky.

For more information on The Junction, check out Toronto Life's neighbourhood profile...

The Junction

Nothing like the first time...

2010-07-29T06:32:00.000-07:00

Check out this fantastic article by Amy Fontinelle...

10 worst first-time homebuyer mistakes

by Amy Fontinelle - Investopedia

These errors could wind up costing you more than the coveted key to your first home.

Are you gearing up to buy your first place? Shopping for a home is exciting, exhausting and a little bit scary. In the end, your aim is to end up with a home you love at a price you can afford. Sounds simple enough, right?

Unfortunately, many people make mistakes the prevent them from achieving this simple dream. Arm yourself with these tips to get the most out of your purchase and avoid making 10 of the most costly mistakes that could put a hold on that sold sign.

(Don't know even where to get started when purchasing a home? Check out Financing Basics For First-Time Homebuyers and our First-Time Homebuyer Guide.)

1. Not Knowing What You Can Afford

As we've all learned from the subprime mortgage mess, what the bank says you can afford and what you know you can afford or are comfortable with paying are not necessarily the same. If you don't already have a budget, make a list of all your monthly expenses (excluding rent), including vehicle costs, student loan payments, credit card payments, groceries, health insurance, retirement savings and so on.

Don't forget major expenses that only occur once a year, like any insurance premiums you pay annually or annual vacations. Subtract this total from your take-home pay and you'll know how much you can spend on your new home each month.

If you end up looking at homes that are outside your price range, you'll end up lusting after something you can't afford, which can put you in the dangerous position of trying to stretch beyond your means financially or cause you to feel unsatisfied with what you actually can afford.

You may even learn that you can't afford the type or size of home that you desire and that you need to work on reducing your monthly expenses and/or increasing your income before you even start looking. (Read Six Months To A Better Budget and Get Your Budget In Fighting Shape to learn more.)

2. Skipping Mortgage Qualification

What you think you can afford and what the bank is willing to lend you may not match up, especially if you have poor credit or unstable income, so make sure to get pre-approved for a loan before placing an offer on a home. If you don't, you'll be wasting the seller's time, the seller's agent's time, and your agent's time if you sign a contract and then discover later that the bank won't lend you what you need, or that it's only willing to give you a mortgage that you find unacceptable.

Be aware that even if you have been pre-approved for a mortgage, your loan can fall through at the last minute if you do something to alter your credit score, like finance a car purchase. If you cause the deal to fall through, you may have to forfeit the several thousand dollars that you put up when you went under contract. (To learn more, read Pre-Qualified Vs. Pre-Approved - What's The Difference?)

3. Failing to Consider Additional Expenses

Once you're a homeowner, you'll have additional expenses on top of your monthly payment. Unlike when you were a renter, you'll be responsible for paying property taxes, insuring your home against disasters and making any repairs the house needs (which will occasionally include expensive items like a new roof or a new furnace).

If you're interested in purchasing a condo, you'll have to pay maintenance costs monthly regardless of whether anything needs fixing because you'll be part of a homeowner's association, which collects a couple hundred dollars a month from the owners of each unit in the building in the form of condominium fees. (For more information, see Does Condo Life Suit You?)

4. Being Too Picky

Go ahead and put everything you can think of on your new home wish list, but don't be so inflexible that you end up continuing to rent for significantly longer than you really want to. First-time homebuyers often have to compromise on something because their funds are limited. You may have to live on a busy street, accept outdated decor, make some repairs to the home, or forgo that extra bedroom. Of course, you can always choose to continue renting until you can afford everything on your list - you'll just have to decide how important it is for you to become a homeowner now rather than in a couple of years. (For related reading, read To Rent or Buy? The Financial Issues - Part 1 and To Rent or Buy? There's More To It Than Money - Part 2.)

5. Lacking Vision

Even if you can't afford to replace the hideous wallpaper in the bathroom now, it might be worth it to live with the ugliness for a while in exchange for getting into a house you can afford. If the home otherwise meets your needs in terms of the big things that are difficult to change, such as location and size, don't let physical imperfections turn you away. Besides, doing home upgrades yourself, even when you have to hire a contractor, is often cheaper than paying the increased home value to a seller who has already done the work for you. (For more information on remodeling, read our related article Fix It And Flip It. The Value of Remodeling.)

6. Being Swept Away

Minor upgrades and cosmetic fixes are inexpensive tricks that are a seller's dream for playing on your emotions and eliciting a much higher price tag. Sellers may pay $2,000 for minimal upgrades or staging that you'll end up paying $40,000 for. If you're on a budget, look for homes whose full potential have yet to be realized. Also, first-time homebuyers should always look for a house they can add value to, as this ensures a bump in equity to help you up the property ladder.

7. Compromising on the Important Things

Don't get a two-bedroom home when you know you're planning to have kids and will want three bedrooms. By the same token, don't buy a condo just because it's cheaper when one of the main reasons you're over apartment life is because you hate sharing walls with neighbours. It's true that you'll probably have to make some compromises to be able to afford your first home, but don't make a compromise that will be a major strain.

8. Neglecting to Inspect

It's tempting to think that you're a homeowner the moment you go into escrow, but not so fast - before you close on the sale, you need to know what kind of shape the house is in. You don't want to get stuck with a money pit or with the headache of performing a lot of unexpected repairs. Keeping your feelings in check until you have a full picture of the house's physical condition and the soundness of your potential investment will help you avoid making a serious financial mistake.

9. Not Choosing to Hire an Agent or Using the Seller's Agent

Once you're seriously shopping for a home, don't walk into an open house without having an agent (or at least being prepared to throw out a name of someone you're supposedly working with). Agents are held to the ethical rule that they must act in both the seller and the buyer parties' best interests, but you can see how that might not work in your best interest if you start dealing with a seller's agent before contacting one of your own. (To learn more, read Do You Need A Real Estate Agent?)

10. Not Thinking About the Future

It's impossible to perfectly predict the future of your chosen neighbourhood, but paying attention to the information that is available to you now can help you avoid unpleasant surprises down the road.

Some questions you should ask about your prospective property include:

• What kind of development plans are in the works for your neighbourhood in the future?

• Is your street likely to become a major street or a popular rush-hour shortcut?

• Will a highway be built in your backyard in five years?

• What are the zoning laws in your area?

• If there is a lot of undeveloped land, what is likely to get built there?

• Have home values in the neighbourhood been declining?

If you're happy with the answers to these questions, then your house's location can keep its rose-coloured lustre.

What do you think?

2010-07-09T07:21:00.000-07:00

We were talking in the office about why open houses are typically held from 2-4PM.

Nobody could come up with a decent answer.

Being in an industry that lends itself to working 24/7 and knowing that we're all trying to get more balance in our lives, we started thinking that this time of day didn't make much sense.

You can't really commit to doing anything on a day that you have an open house. We started wondering if our clients felt the same way.

Are open houses in the middle of the afternoon convenient for you? Or would you prefer they be held in the morning from 10AM-12PM?

Let us know what you think by voting in our poll posted to the right of this page!

Cheers,
Mark

Don't worry, be hot and happy.

2010-07-08T10:44:00.000-07:00

If you've been keeping an eye on real estate news, you'll be seeing a lot of bubble talk.

June was hit with a multiple whammy that has led to softening of the market, most of which was fairly expected.

First, we had a very early spring market with unusually weather and pent up buyers. That typical seasonal surge correspondingly ended early, triggered by the G20 and perhaps a touch of FIFA World Cup.

Second, when everyone saw the return of multiple offers and frenzied buyers, a lot of homeowners decided to jump in and sell....there was a huge 21% increase in inventory in June which flipped the table a bit, increasing choice and decreasing the pressure for buyers, putting some of the power back in their hands. But a lot of sellers came to the party late and were caught off guard by the early cooling of the spring market.

Rate increases and the HST have had some effect, although not quite as dramatic. HST really hit the pockets of new home buyers but resale hasn't seen the impact. If it was going to be a huge motivator, numbers would have been much stronger in June since offers had to be written by the deadline to be exempt.

Another factor were the new CMHC mortgage regulations, which increased the down payments for investors and the income requirements for buyers who must qualify for a five-year fixed rate.

And as per the media frenzy, the sky is not falling. The market typically slows down in the summer anyway and you can't get too caught up in month-to-month changes.

We foresaw a slow down for the latter half of 2010 and expect this to continue. The good news is that the market is becoming more balanced for both buyers and sellers. Buyers are not necessarily in competition but sellers are still getting good value for their homes. Sellers do need to bring their expectations in line with the current market but should still have confidence.

I still see a seasonal boost in the fall once everyone has their head out of summer. The true test of the market sustainability will come once we see the numbers for Q4 of this year.

Until then, enjoy the long hot summer!

Cheers,
Mark

For the Toronto Real Estate Market Watch and the Housing Market Charts, see below...

Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.

"We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year," said Toronto Real Estate Board President Bill Johnston. "The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates."

The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.

"With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The annual rate of average price growth in the second half of 2010 will be in the single digits."

Click here for the full PDF:
Market Watch

Good Things

2010-07-07T11:58:00.000-07:00

Every once in a while we come a cross great deals, places and info for your home and we can't wait to share...

Hogar Home

Sadly this Leslieville store is closing but that means great deals for furnishings and accessories. They have been closed this week to pull out all of their stock and re-open this weekend for a final sale.

Beyond the 50% off, you can probably negotiate if you're purchasing multiple items (my wife did!). We got a great pair of bedside lamps and they also have amazing kitchen accessories - great food containers for our daughter and the best stainless steel cleaning cloths. This store is great for gifts and your own home!

Universal Lighting
121 Cartright Avenue - 416.787.8900

Great deals abound at the Universal Garage Sale where new product continues to make its way from the main store to their warehouse next door each day.

All merchandise is between 50% and 70% off and includes crystal, stainless and iron chandeliers, as well as halogen wall sconces in chrome and stainless, ceiling fans and select outdoor fixtures.

Design Within Reach
416. 977.4003

We've featured their floor sale in the past and we're doing it again...because the deals are so great! From 40-80% off, you can get classics like Eames chairs from $450 a piece to $270.

DWR Floor Sale List

Call Molly Scott to check if an item you love is still in stock.

Stacaro

Stacaro is a great store for traditional or european style furniture and they have an end of season sale, including exlusive online offers.

Have you heard of great deals for you home? Let us know...comment below!

Cheers,
Mark

HST and Your Mortgage

2010-07-07T11:27:00.000-07:00

From the desk of Peter Majthenyi - Mortgage Architects

Now that all the commotion of the G20 meeting is over, and the official launch of HST is done … it is time to "pause", put everything into perspective, and consider how these recent events affect our daily lives.

The Canadian economy is performing better than most. Even though commodity prices are weak, we don't have excessive national debt relative to other major economies, and we are we still experiencing some healthy economic growth.

Under these conditions, one would think interest rates will have to increase soon, yet this is not the case because the U.S. and most European countries are attempting to cut their deficits in half over the next three years and that focus will likely not allow for any dramatic interest rate hikes soon.

So despite some burned out police cars and broken store windows, the news for the average Canadian borrower is good… Capitalism 1 Anarchy 0.

The average Toronto home price is up by $50,000 over this time last year and it appears the fury of home buying is starting to slow as we reach a more ideal and balanced market.

Our Government has been relatively successful in cooling an over-heated real estate market; their goal was to make the average consumer look at their debts carefully before they considered making any major purchases.

Both Provincial and Federal Governments have been proclaiming for months that we need to be aware of increasing interest rates, more strict criteria to qualify for a mortgage and, finally, the launch of the HST.

The combination of all these changes has definitely moderated our buying behaviours.

The HST does not affect mortgages or mortgage services. There are no taxes on financial services so your mortgage is insulated from any direct effects of the HST. There will be some increasing costs, such as legal services to set up a mortgage, which will have an applicable HST and so will your CMHC premium.

Practically speaking, these expenses are very minor and will likely not influence your decision to buy real estate or pursue a better mortgage.

There's more good news; fixed mortgage rates are dropping! Many consumers are very unhappy and are boycotting lenders like TD and RBC who were very quick to increase fixed mortgage rates when their owns costs of funds did not increase.

These lenders were taking advantage of the media hype that interest rates were going up soon and they decided to take some early profits at the borrower's expense. Not to mention, five-year fixed mortgages have not been saving homeowners money for many, many years.

We can't express enough how important it is to be financially literate so you make educated decisions on all your finances. For example; research will demonstrate that even if interest rates only climbed, the current five-year variable rate at 1.9% will still result in less interest paid compared to the current five-year fixed rate at 4.19%.

Also, it is important not to obsess with the interest rate itself but to obsess on the strategies implemented to pay less interest. There is a difference between interest rate, and how much interest you will pay. If a mortgage rate is .1% less it will save about $250 a year on a typical mortgage, and I would hope with a better "Mortgage Plan" we are saving a heck of a lot more than $250 a year!

Consider us as your mortgage educator and you will learn there is not a right or wrong mortgage choice… our common goal is to make an educated choice. Visit us 24/7 at our website or connect with us anytime at 416-236-9300.

Here's to a hot and safe summer… Peter, Andre & Team.

To talk to Peter or Andre, go to www.mymortgageplanner.ca.

Markets - A Slight Chill

2010-06-09T13:02:00.000-07:00

May Sales Remain High

June 3, 2010 -- Greater Toronto REALTORS® reported 9,470 sales through the Multiple Listing Service® (MLS®) in May, representing a one per cent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.

“The pace of transactions slowed in May following record-setting sales in February, March and April,” said Toronto Real Estate Board President Tom Lebour. “Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes.”

New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – up 13 per cent compared to the average of $395,609 recorded in May 2009.

“The gap between listings and sales has widened, which means there is more choice for buyers,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The annual rate of price growth will slow in the second half of 2010, from the current double digit pace into the single digits.”

Median Price
In May, the median price was $376,750, from the $337,000 recorded during May of 2009.

Click here for the complete current issue of Market Watch in pdf file format.

Check out the housing market charts for historic comparison...

Mortgages - Answers in June!

2010-06-09T08:11:00.000-07:00

Scott's Perspective

by Scott Westlake
Mobile Mortgage Specialist - Royal Bank of Canada
Cell: 416.436.1135
scott.westlake@rbc.com

June is becoming a very exiting month for real estate in Toronto/GTA. It seems like everyone has been waiting to see where the market is going in terms of interest rates, which I comment on below, how HST will affect the average home buyer. How government changes will affect clients purchasing real estate and lastly how the market will react to the above noted changes.

June has finally brought some answers. The seemingly “never ending” interest changes in the fixed market has slowed down, and in fact, on some terms slightly decreased since the initial hike on all fixed products.

The seemly unsettling feeling for all variable clients was at least for the time being put at ease with only a 25bps interest rate increase. HST publications are everywhere and a simple internet search will easily provide more than enough information to understand the potential impacts on the real estate industry.

The government changes have not seemed to impact the average client and/or slow down those purchasing real estate. The new standards have just seemed, at least initially, to ensure Canadians are purchasing within their means and ideally this will lead to a more solid real estate market, keeping prices in line and creating a better economic landscape protecting all of our investments.

This month I read a bunch of articles as always to keep myself informed and have attached two that I find a good read. Please see, “Canadians purchasing recreational properties,” which I find a good read. This really shows the strength of Canadian real estate and how we are reacting to adversity.

Purchasing recreational properties tends to be something you only do in a “great market,” or when times are perfect. Despite some set backs in our market, Canadians are purchasing real estate for recreational use. The second article is a market update from CMHC. Please visit their website for additional information, http://www.cmhc-schl.gc.ca/en/

As always, I am here to help all my clients, contacts and friends alike. If you or anyone you know is looking for the right advise and help either getting into their dream home, investment property or even is looking to switch their mortgage, please email or call me anytime! Scott.westlake@rbc.com

Sincerely and happy home buying,

W. Scott Westlake

RBC Mortgage Specialist

Canada becomes first country in G7 to hike rates

2010-06-09T08:05:00.000-07:00

A report from the Canadian Real Estate Association talks about the bank rate increases from a global perspective...

For the first time since 2007, the Bank of Canada raised its target for the overnight rate by one quarter of one percentage point to 0.5 per cent on June 1, 2010. The Bank rate was raised to 0.75 per cent and the deposit rate was unchanged at 0.25 per cent, thereby re-establishing the normal operating band of 50 basis points.

The Bank had been keeping its benchmark interest rate at the lowest possible level for more than a year to stimulate the fragile economic recovery.

The Bank noted that while that global economic recovery is well under way, it is unfolding unevenly on a global basis. It characterized the ongoing imbalances as “strong momentum in emerging market economies,” and “some consolidation of the recovery in… industrialized economies,” counterbalanced by the “possibility of renewed weakness in Europe.”

The Bank keyed in on current volatility in the European markets as the largest downside risk to global economic growth saying, “Recent tensions in Europe are likely to result in higher borrowing costs and more rapid tightening of fiscal policy in some countries.”
The Bank noted that spillover into Canada from events in Europe has resulted in a modest decline in commodity prices and some tightening in financial conditions.

The Bank downplayed slightly stronger than expected inflation and economic growth saying, “CPI inflation has been in line with the Bank’s April projections,” and “activity in Canada is unfolding largely as expected.” It also played up the idea that consumer spending would soon subside: “Going forward, household spending is expected to decelerate to a pace more consistent with income growth.”

As of June 1st, the advertised five-year conventional mortgage rate stood at 5.99 per cent. This is down 0.66 per cent from one year earlier, but stands 0.14 per cent above where it stood when the Bank made its previous interest rate announcement on April 20, 2010. It is also one half of a percentage point above where it stood at the beginning of the year.

“The Bank left its options open as to whether it will raise rates again when it makes its next interest rate announcement on July 20th,” said CREA Chief Economist Gregory Klump. “I expect it will raise rates by another quarter of a percentage point at that time, but will take a pause at some point later this year, especially since interest rates in the U.S. are likely on hold until next year.”

“Even though they are on the rise, mortgage rates will still be at low levels that are housing market friendly, with home financing remaining within reach for many homebuyers,” he added.

The Bank will make its next scheduled announcement on July 20th.

http://creastats.crea.ca/natl/interest_rate_trends.htm

(CREA 06/01/2010)

HST Confusion...and Clarification

2010-05-18T17:53:00.000-07:00

When exactly does HST come into effect for real estate transactions?

That's the problem. This is not exact science.

To clarify...

For Resale Homes

As of July 1st, buyers and sellers will pay 8 per cent more on legal fees, appraisals, real estate commissions, home inspection fees, and moving costs.

That's about $2,500 extra if you are selling a $600,000 home. And just over $4,000 on a $1 million dollar home.

Someone once told me not to take any money for granted, and a good way to look at things was by figuring out how much careless use of money was costing you in terms of wine.

THAT's a lot of wine folks.

And the government will still keep cutting...The HST will also apply to utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal, which were all previously exempt from PST.

For New Homes

Before, new homes were exempt from PST. As of July 1st, new homes worth less than $400,000 will qualify for a 6% tax rebate, but new homes worth more than $500,000 will be subject to an additional 8% tax. Ouch. That's $40,000. Way to go Ontario for effectively squashing new home sales and development.

But wait! There's still time!

For those of you trying to take advantage of the 42 days or so before it applies, you have a bit more time on your side.

As per our broker, "If 90% or more of the services are performed before July 1st, HST will NOT apply. Most transactions written and firm before July 1st, 2010 can be assumed to be HST free."

Meaning, if you have a firm sale or purchase before July 1st, but the close date falls after July 1st, you can assume you will be HST free.

So if you are currently in the market to sell or buy, make sure you not only have an accepted offer, but make sure any conditions are removed prior to June 30th!!

I, for one will be planning not to sleep for the last week of June.

Cheers,
Mark

Get Dirty

2010-05-18T17:00:00.000-07:00

With somewhat more permanently good weather, now is the time to get in the garden and get dirty.

To kick things off, check out some great plant sales in Toronto. Click the link for details...

Black Creek Pioneer Village - Doors Open Toronto Plant Sale
Saturday, May 29th to Sunday, May 30th

Sheridan Nurseries
Tuesday, May 18th to Monday, May 31st

Humber Nurseries
Monday, May 17th to Sunday, May 23rd

Once you've tackled the garden, don't forget the rest of your house. Here is our checklist for spring maintenance on your home.

- Check and clean or replace furnace, humidifier and air conditioning filters.

- Check air conditioning system and have serviced every two or three years.

- Check smoke, carbon monoxide and security alarms and replace batteries.

- Clean windows, screens and hardware, and replace storm windows with screens.

- Open valve to outside hose connection.

- Check your foundation walls for cracks, leaks or signs of moisture, and repair as required.

- Get your eaves troughs and downspouts cleaned and check for loose joints and secure attachment to your home and ensure water flows away from your foundation.

- Fertilize any young trees and plants that need encouragement.

- Get your front yard planters done - a sure sign spring is here.

And do what I do....leave for work when it's time to do the weeding :)

Cheers,
Mark

Crack Shack vs. Mansion

2010-05-11T12:28:00.000-07:00

It's funny bit kind of scary. My wife scored 12 out of 16, but she is a ringer since she's from Vancouver. Comment below if you beat her!

CRACK SHACK VS. MANSION

April Market Watch

2010-05-10T12:50:00.000-07:00

No matter how much the media tries to blow up the situation, the numbers are showing that the there is no bubble to burst, just a return to a more balanced market with greater inventory and movement.

There is no doubt that things will slow down in the latter half of 2010 but not the frightening cliff dive that the papers would have you believe, at least not in Toronto.

Again, caution to buyers who are shopping in the frenzy of multiple offers. I have pulled back many of my buyers from over-paying for properties.

We have a saying in our business that "someone just got buried" when we hear of multiples resulting in a price way over value.

Meaning, they won't be able to sell it for close the amount they paid if the market slows down even a touch and they won't see the typical gains in equity and value if the market rises. Net, net - they'll never get out of it...at least for a long time.

Not to mentioned the previously discussed major issue of not having the house appraise out.

The other saying is that "a home is worth what the market is willing to pay". I disagree.

Just because someone got silly and overpaid does not mean that is what the home is worth. They were just able to take advantage of buyers caught up in the frenzy, or buyers not doing their homework on the home's actual value.

The value proposition of a home is based on a careful evaluation of comparable properties that have sold in the same area in a recent period of time, i.e. 0-12 months, depending on the market conditions.

Do your home work and be patient - the right home will come :)

Cheers,
Mark

May 5, 2010 -- Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries.

“The GTA resale market is functioning properly. Sales were high as buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour. “More balanced market conditions will result in sustainable rates of annual price growth in the second half of 2010.”

The average price for April transactions was $437,600 – up 13 per cent compared to the average of $385,641 recorded in April 2009.

“Home sales continue to be driven by many different segments of the market, with sales growth for all major home types in both the City of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales will remain strong in the second half of 2010, but will slip from the current record pace as borrowing costs rise.”

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

Mortgages - Rate Creep?

2010-05-10T06:42:00.001-07:00

From the desk of Peter Majthenyi and Andre Semeniuk...

Lately there's been a lot of speculation on when and how high interest rates will go. I don't think any of us thought rates would stay low forever.

I am confident we all recognize that our economy will gradually improve, and along with economic growth comes more realistic mortgage rates, likely in the range of 4-6%, which are still historically amazing.

A better question is "When do we feel they will start to rise?" To date, interest rates have not gone up, yet the lenders have increased their margins on 4 and 5 year fixed terms to take some early profits in expectation rates will begin rising in the near future.

Recently, CMHC (Canada Mortgage and Housing Corp) released their annual analysis that clearly indicates that any interest rate increases will need to be "controlled increases", or in other words gradual increases to avoid any economic shock.

Meanwhile in the US, their economic recovery is very fragile and being undermined by high unemployment. The US Federal Reserve is predicting further declines in home prices and therefore are not expected to increase their interest rates until 2012.

Many studies (see CMHC.ca) have also identified that there is no real estate "bubble" and conversely we are approaching "equilibrium", meaning that supply and demand are coming in line, which will result in more stable home prices.

To complement this data, the results from a recent survey indicated that more than 80% of Canadians were not concerned if their mortgage rate increased by 2-3%. The media tends to make rate increases sound worrisome, but if one takes the time to "pause" and do some simple math it's easy to understand the sky is not falling.

For example, many consumers choose variable mortgages because the Government would have to raise the overnight rate 18 times and it still performs the same as jumping into a 5 year fixed term immediately.

Variable mortgages are not about rates rising, they are about accepting rates will rise and deciding if I want to pay the higher rate now or later, and you guessed it… most would much rather pay a higher rate later. Who would be in a rush to pay 4-5% this year, when they can put that off for another 3-5 years?

Speaking about variable rates. Currently the typical variable rate is Bank Prime less .5% or 1.75%, yet we understand this is not sustainable much longer. In the coming months, we are expecting lenders to price variable mortgages at Bank Prime less .25% or 2%… so take advantage of the maximum discounts right away.

Borrowers that secured a variable in the last year or so that are paying Prime Plus .25% or greater should strongly consider paying their small discharge penalty and changing to a Prime less .5% mortgage immediately… the math definitely works in the borrowers favour!

We are expecting a healthy economy for the rest of 2010 yet less growth is expected for 2011, but at least the worst is behind us. Let's hope our unemployment comes down while our consumer confidence goes up!

To ensure you, or someone you know, has the right "Mortgage Plan" & "Investment Plan" please feel free to reach out to us anytime.

I will share more with you soon… Peter, Andre & Team

Lose the clutter. Find the cure.

2010-04-19T16:40:00.000-07:00

How do you turn this...

Into this?

With this...

Imagine...fondue sets and velour leisure suits actually have the power to cure cancer!

On Saturday, May 29th, RE/MAX is sponsoring the Yard Sale for the Cure.

Join us in our fight against breast cancer by holding a yard sale or by shopping for bargains.

Register online to hold your own yard sale at www.yardsaleforthecure.com to get a Yard Sale for the Cure kit for only $25.00 which includes a lawn sale sign, hat, posters, pink balloons and info package.

100% of the funds donated will support breast cancer research and patient care.

Spring shopping fever!

2010-04-19T10:35:00.000-07:00

With temperatures rising, it's time to think about outdoor living..

Here are our favorite sources for furniture and accessories, as well as some of the hottest products for the season. Check out the links below for great floor sales.

Design Within Reach
435 King Street West
mscott@dwr.com
416.977.4003
www.dwr.com

Great for indoor living as well, this west end store has an incredible selection and a great 7-10 day turnaround for stock. Prices are officially listed in USD on their website but they said they are at par right now with the Canadian dollar so now is the time to buy!

Some of our favorite things...

Looking for a solution for ambient lighting? Check out these soothing planters. On sale from $525 to $446 USD

Finally, house numbers that have some style!
$48 USD each.

Sick of lighting candles and wax dripping all over your outdoor furniture as the wind blows them out? Set up these gas table-top torches as shown in a cluster or purchase a series in the same size and arrange in a line down the center of your table. $90-230 USD

Our contact at Design Within Reach, Molly Scott has also sent us their floor sale details for incredible discounts. Click below for full details - stock subject to availability so give Molly a call if you see something you like.

Design Within Reach Floor Sale

Southport Home
6201 Highway 7, Vaughn
905.850.9995
www.southporthome.ca

We got our own patio furniture there last year and love it. Great value, quick turnaround for cushions as they have their cushions done in-house and they don't charge extra for having zippers on them. Not to mention the cushions are far more comfortable than most of the more expensive suppliers.

Stack Canada
2124 Queen Street East
(416) 693-6868
http://www.stackcanada.com/

Located at Hammersmith and Queen, this new store is a great place for housewarming or hostess gifts, and all those accessories that you seem to need to organize the house. They also have some incredibly fun and indulgent items too.

Amazing for durablity and style, they carry Chilewich floor mats in a variety of sizes.

Inside the Toronto Real Estate Market

2010-04-07T06:28:00.000-07:00

The spring market is definitely in full swing!

The great weather has meant a nice kick start to 2010 and buyers are coming out in droves. With that, sellers are now wanting to take advantage and we are seeing a large jump in the number of listings coming out.

My hope is that the market does not become too flooded with inventory as that will once again cause an imbalance and depress values. The danger will be sellers who see the activity in the market and become overconfident, and over price their homes.

It is extremely important to continually evaluate competitive listings that are coming out so that the listing price of your home is a reflection of the current market. You have to treat your home like any other product in the market place. If a buyer can get more for less with another home that meets their criteria, they will. Vice versa, if your home offers more, you can ask for more.

A caution to buyers as well....do not get caught up in the bidding wars that are sparking once again. I always counsel my clients to determine the number they are comfortable with, based on the value of the home, not the frenzy and emotion of the bidding situation.

But go in with your best offer - ask yourself, if you heard that the home sold for $5,000 more, would you have felt good about that price yourself? Know your limit and understand your financial situation. If you pay too much for a home, the bank may not appraise it out at your purchase price and you will be left to make up the difference on top of your down payment.

Check out the Toronto Real Estate Board Housing Charts and the full Market Watch below..

Cheers,

Mark

Toronto Real Estate Housing Charts

Check out the March and first quarter Market Watch from the Toronto Real Estate Board...

Record First Quarter Sales

April 6, 2010 -- Greater Toronto REALTORS® reported 10,430 sales through the Multiple Listing Service® (MLS®) in March, pushing total first quarter 2010 sales to 22,418 – the best result on record under the current Toronto Real Estate Board (TREB) boundaries. The average price for March transactions was $434,696. The average price for the first quarter was $427,948.

“The strong rebound in the existing home market was one of the initial drivers of economic recovery,” said TREB President Tom Lebour. “While we don’t expect to see the same rates growth moving forward, GTA households will remain confident in ownership housing as a quality long-term investment, especially as economic recovery expands across all industries.”

The annual rate of growth for new listings continued to accelerate in March. The number of new listings grew by 42 per cent compared to March of 2008.

“The average home price in the GTA will continue to grow this year, but the pace will slow as we move through the spring,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As growth in new listings starts to outstrip growth in sales, buyers will experience more choice, resulting in more sustainable single digit rates of average price growth.”

For the full Toronto Real Estate Board Market Watch, click here.

Mortgages - Rate Hikes in our Future?

2010-04-06T11:13:00.000-07:00

You've probably heard the buzz on mortgage rates going up - check out this article by Rob Carrick of the Globe and Mail for a very important date...

The end is nigh for low-interest-rate heaven.

Rob Carrick, March 30th - Globe & Mail

With rates on the rise, here's what you need to know if you don't want to add years to your variable-rate mortgage...

Mark June 1 on your calendar if you have a variable-rate mortgage.

If you have a 35-year amortization and put down only 5 per cent when you bought your home, then be extra diligent about noting this date. Let things slide and you might be amazed at how much longer it takes to pay off your mortgage.

With the economy showing signs of rebounding, there's growing speculation that June 1 will be the day the Bank of Canada begins the coming cycle of interest-rate increases. Whenever this happens, it's back to the real world for variable-rate mortgage holders after almost three years in low-interest-rate heaven.

If you have a fixed-rate mortgage, you're immune to rate increases until renewal time. (Note that Royal Bank, Toronto-Dominion Bank and Laurentian Bank said they would raise their rates on five-year, closed, fixed-rate mortgages effective today.) With a variable-rate mortgage, however, your rate is adjusted up or down with each movement in the prime lending rate. The prime is influenced by the Bank of Canada's overnight rate, which will be set eight times in 2010. The next rate announcement is scheduled for April 20, and the ones after that happen June 1, July 20 and Sept. 8.

If you have a variable-rate mortgage but you don't have a plan, you're going to live and die by these dates.

Let's assume that you don't intend to use the provision that allows a variable-rate mortgage to be converted into a fixed-rate loan without penalty. Variable-rate mortgages usually cost you less interest over the long term, so this decision is certainly defensible.

A first step in preparing for higher rates is to ask your lender what will happen to your mortgage payments when the prime rate starts to increase.

Vince Gaetano, a mortgage broker and vice-president at MonsterMortgage.ca, mentioned two possibilities. The first is that your lender will adjust your payments higher to cover the increased interest costs and stay within the amortization period you selected when you arranged the mortgage. If your mortgage works this way, all you have to do to prepare for higher rates is clear some room for higher payments.

The second possible result of higher rates is that nothing will happen to your payments. In other words, you're on your own. "The lender won't do anything until negative amortization kicks in," Mr. Gaetano said.

Negative amortization means your payments aren't enough to cover the interest you owe. Whatever extra interest there is gets tacked onto your principal, thereby increasing both what you owe and the payback period for the mortgage.

Even without negative amortization occurring, you can still add years to the payback period. Mortgage broker Jake Abramowicz ran some projections and found that an extra 10 years or more is possible.

There's extra urgency here if you have a 35-year amortization and you made the minimum 5-per-cent down payment. If rates rise substantially and you don't increase your payments, you could be knocking off just a few dollars of principal every payment. "People might as well be paying rent," Mr. Abramowicz said.

There's a third group of variable-rate mortgage holders out there - those who had their payments pegged to the rate of a three-year fixed mortgage. Note: Lenders have traditionally made sure you could afford the higher three-year rate before selling you a variable-rate mortgage. Starting April 19, they'll have to use the posted Big Bank five-year rate.

If you've been making higher-than-needed payments on a variable-rate mortgage, then you've done yourself a huge favour in terms of chipping away at your principal. Just remember that unless you keep tabs on rates, a sustained rise in borrowing costs could remove your cushion and slow your repayment process down.

The simple solution is to bump up your payments to cover off the extra interest cost. Typically, you can increase your regular payments by up to 100 per cent in a year. If you want to pay even more, try a lump sum or use the double-up payments that some lenders allow you to make when it suits you (it's not necessary to pay exactly double your normal payment, by the way).

Mr. Gaetano said that even if the payments on your variable-rate mortgage remain unchanged as rates rise, you'll still receive notices from your lender each time the prime rate rises. This ain't junk mail, people: It's a warning you could slowly be falling behind in getting your mortgage paid off.

Want to avoid the hassle of rate watching? There's always the option of switching to a fixed-rate mortgage. Mr. Abramowicz's take on this idea: "It's never a bad idea to lock in under 4 per cent [for five years]." Rates are going up, so hurry.

Inside the Toronto Real Estate Market

2010-03-10T13:03:00.002-08:00

While inventory is still low, we are starting to see things heating up for the spring market. But as listings increase, so do the number of buyers. So if you are thinking of buying in the coming months, get your proverbial ducks in line so you are ready to move on the home you want.

The market is still making a good recovery in terms of average prices but numbers are being pushed up by the imbalance in the supply and demand.

Again, now is a GREAT time to sell.

Check out great housing charts from the Toronto Real Estate Board showing historic market performance against current activity.

You can also see the full TREB Market Watch below.

We're looking forward to a solid spring market!

GTA REALTORS® Report February Resale Housing Market Figures

March 3, 2010 -- Greater Toronto REALTORS® reported 7,291 sales through the Multiple Listing Service® (MLS®) in February, representing a 77 per cent increase over February 2009. The average price for these transactions was up 19 per cent year-over-year to $431,509. Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.

“Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise home types. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said TREB President Tom Lebour. “This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.”

New listings also increased in February, climbing 24 per cent compared to the same month last year.

“Annual growth in new listings is expected to continue. New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable single-digit rates of price growth.”

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

New Mortgage Regulates and Current Rates

2010-03-10T11:36:00.000-08:00

Check out Peter Majthenyi's coverage on the new mortgage regulations that you need to know!

New CMHC (Canada Mortgage & Housing Corp) Guidelines and You…

By now most have heard that our Finance Minister is concerned about Canadians keeping their debts under control so American mistakes are not repeated here. The Canadian housing market has been quite resilient regardless of the crippling global recession of the last two years. Now Canada takes great pride in our Banking system and prudent lending practices … we are the “Gold Medalists” of the Economic Olympics so to speak.

CMHC has agreed to work with “Big Brother” and make some minor changes to mortgage lending rules, which I feel are quite insignificant for the typical borrower. These new rules are practices that most mortgage professionals have implemented quite some time ago.

Now buyers need to have their employment income to mortgage payment ratios to be based on the five year fixed mortgage rate even though they may choose a variable rate mortgage at a much lower rate. Previously we were required to use a three year fixed mortgage rate to determine one's qualifying ratios. Again, this difference is very minor for anyone who deserves a mortgage.
When refinancing to better reposition debts we can no longer increase the mortgage up to 95% of a property's value. Going forward we can consolidate our obligations by increasing our mortgage to only 90% of the property's value. In the past, rarely would I see someone in a desperate position where we needed to leverage their home up to 95% when consolidating their debts.
Finally, investors now need to put 20% down payment on a rental property where until now they could buy with as little as 5% down. When buying a rental property with less then 20% down the insurance premiums were so high that it was counterproductive to consider buying an investment property this way … not once have I seen an investor want to pay the high CMHC premium to buy with 5 or 10% down.

Even though the above changes will have little effect in cooling off our hot real estate market, we are seeing other changes at CMHC that are causing some borrowing barriers. As of late, CMHC has been more cautious when appraising property values, and in multiple offer situations CMHC is questioning purchase prices that are well in excess of the list price. We have also noted that they are scrutinizing credit ratings more carefully, as well as job tenure. Our best advice is to be well prepared with your mortgage planner in advance of making offers where the mortgage will be more then 80% of the purchase price.

2010 will prove to be a strong year for real estate primarily fuelled by low mortgage rates that are not expected to rise significantly anytime soon … so for all intents and purposes it is “Business as Usual”.

Mortgage Rates

Check out the current rates by clicking here!

HST and Real Estate

2010-03-10T09:29:00.000-08:00

Once again the government is doing a fantastic job of putting up more barriers to growing the economy by implementing HST, as if increased land transfer costs were not enough!

Many people have had questions on how this will impact home purchases. The biggest misconception is that this tax applies to resale homes as well as new builds. This is definitely not the case.

To clarify, no HST will be charged on residential rents, condo fees or the purchase of resale homes.

The HST will be applied on the purchase of new homes.

However, home buyers will be able to claim a rebate of some of the provincial portion of the tax for new homes priced up to $500,000. The rebate for new primary residences under $400,000 will be six percent of the purchase price (or 75 percent of the provincial portion of the tax), with the rebate amount reduced for homes priced between $400,000 and $500,000.

Buyers of new residential rental properties will receive a similar rebate.

The HST will however, apply on real estate commissions.

To see how else the HST will affect your day-to-day expenditures, check out the handy chart below:

Chart courtesy of Richard Silver, Torontoism

Send your feedback to your local MPP or, for your convenience, we have included Dalton and Dwight's email address for you to share how you feel about HST!

Dalton McGuinty - Premier: dmcguinty.mpp.co@liberal.ola.org

Dwight Duncan – Ministry of Finance: dduncan.mpp@liberal.ola.org

Market Watch

2010-02-09T11:28:00.000-08:00

Check out the Toronto Real Estate Board's Market Watch for January 2010...this year is off to a great start but we expect the momentum will taper off the in second half of the year.

Also, the Globe and Mail Personal Finance Reader pulled some great feature articles on the real estate market. Check out the next article from Broker News which attempts to answer the question, "Is there a Canadian Housing Bubble?

Sales Start Off Strong in 2010

February 3, 2010 -- Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough. Last month’s sales were slightly higher than the January average in the five years preceding 2009.

“The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour. “Increasingly confident consumers moved to take advantage of affordable home ownership.”

The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.

“Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The rate of sales and price growth will be lower in the second half of 2010.”

Check out the full Toronto Real Estate Board Market Watch by clicking here.

Since last October, home resale numbers have almost doubled, up 41.5 per cent and setting new records in Toronto, Ottawa and Montreal, all according to figures from the Canadian Real Estate Association (CREA). It's stats like these that prompted economists from Scotia Capital, Derek Holt and Karen Cordes, to publish a report aptly titled, "Is there a Canadian Housing Bubble?"

And considering the data, it's not an unwarranted question. Holt and Cordes plainly put forth that "Canadian house prices are rich no matter how one looks at it, but they are likely to become richer yet before material risks emerge later next year and beyond."

They even answer their title's question with the retort, "probably," but elaborate that the combination of low rates, mortgage innovation and shortage of supply will keep it at bay for awhile.

In the Globe and Mail, Holt and Cordes said that "with prices up 20 per cent over year-ago levels and at all-time highs by virtually every measure, this is becoming an over-valued asset class in our opinion."

As for the argument that increased affordability is driving the market, Scotia Capital claims that using affordability as a valuation measure is not a fair valuation at all, as "affordability is often just an interest rate at play."

In other words, they believe that a housing bubble is well on its way.

Choose your words wisely
The word bubble, especially when it's used in conjunction with the phrase real estate, has a fair amount of weight behind and shouldn't be used lightly. When CMP contacted some of last year's top 50 brokers, for instance, they tended to agree the so-called bubble was as imaginary as the mortgage monster under your bed, and what the industry is experiencing is simply a sharp rebound. For them, it's the difference between performing the pole vault and landing on your back with the crash mat, or without it. In other words, the market will have its ups and downs, but this time when it does go down it won't hurt too terribly.

Peter Kinch, of the Peter Kinch Mortgage Team in Vancouver, believes that everyone is confusing leftover pent-up demand from 2007 to 2009 and the current low interest rates as a possible bubble.
He defines the term bubble as "an over exuberance of activity not founded on any core fundamentals, resulting in irrational buying behaviour of the public."

In a true bubble it's not enough that consumers can afford a house, but they have to chase after it like a stock that they know is over-inflated, hoping to make a quick return on it. Kinch calls this chase "the greater fool theory," in which the consumer hopes to buy an over-inflated priced house in hopes of flipping it in the short term to a greater fool.

Not only that, but for there to be a housing bubble Kinch finds it imperative that interest rates and unemployment rates increase sharply, resulting in a significant increase in defaults and fear. In turn, many houses need to be unloaded on to the market at once.

"I do believe there is fear-mongering that goes on in the media where people say, 'Oh, geez. I saw in the Globe and Mail today that interest rates are going to go up and it's going to cause a crash in the housing market.' Well yeah, theoretically," said Kinch.

However, he claims that the Bank of Canada would not drastically increase the interest rates at any given point. This is because of how closely tied the real estate market is to the economy, and more specifically, the Canadian dollar. The lower interest rates we see now are meant to stimulate the economy, and Kinch believes that the Bank of Canada would not arbitrarily destroy such economic stimulus by raising the rates too high or too quickly.

Dwight Trafford, of Mountain Mortgage in Orangeville, Ont., believes that people are currently being very reactionary to the market.

"There is some perception that there are still deals, and some perception that rates will rise," he said. "With that, people are jumping in and trying to take advantage of both situations."

He also blames the media for creating something new to report. "Saying that there isn't [a bubble], that's not news," he said, adding that cases of multiple offers also tend to lead people to believe that there is a bubble.

A balanced view
Then there is the opinion that today's market is simply balanced, and therefore a healthy one. For Paul Gazzola, of Mortgage Architects in Mississauga, Ont., a bubble occurs when prices are inflated over and above what normal level statistics would dictate of supply and demand. Gazzola believes that the speculation of there being a bubble right now is indebted not only to pent-up demand and bubble-flavoured comments by political leaders and bank governors, but also to consumers investing in real estate in hopes of pushing the market to higher rates of return.

However, he said that affordability will thwart that effort. Because lenders and the Canada Mortgage and Housing Corporation have implemented measures since the economic downturn in regards to maximum loans to value rations and refinances, the real estate market will stay away from a potential bubble status. That is, as long as interest rates do not increase within the next year.

What to tell the consumer
Although Kinch does not foresee a bubble in the Canadian real estate market's future, he is wary there will be a small secondary recession. However, he finds it normal that there is a downturn in the winter months, so the consumer should not misinterpret it as anything more and overreact to regular market conditions.

"If I'm in my house and I'm making my mortgage payments and I can afford my mortgage payments, then the value of my house on a day-to-day basis is actually irrelevant," he said. "The value only comes into play the day that I go in to sell that house. Consumers should really focus on measuring peak to peak and not peak to trough."

For Kinch, lack of consumer confidence is the biggest threat to the housing industry. Not only should consumers change their attitudes, but according to Kinch, brokers should as well. He says that brokers shouldn't adjust to a market that does not experience double-digit growth in real estate prices. Instead, they should adjust to small ups and downs, and in the end, brokers and consumers should ask the consumer one question: What can you afford?

This question should be asked regardless of what happens to a house's value or interest rates.
Trafford offers that brokers and consumers in Ontario and B.C. should instead worry about how the harmonization sales tax (HST) will affect the market when it comes in effect July, 2010. He said that rather than focusing on talk of a bubble, brokers should remind clients that the impending HST and the potential for a rise in interest rates make now the best time to buy.

What history tells us
Trafford believes that for there to be a bubble, house prices must be artificially and substantially inflated by at least 50 per cent, which is based on his experience as a broker in 1990 when there was a definite bubble. He claims that optimism in the economy, low interest rates and the fear that interest rates will rapidly increase are encouraging people to buy houses more so than if these factors were not present.

Based on current market conditions, Trafford predicts there will be a bit of a slowdown in real estate next year. Not only will the refinance market slow down, but so will purchases because consumers will realize that the economy is not what they thought it was. Despite these conditions, Trafford believes that as long as interest rates stay low, consumers will continue, at some level, to buy homes. And while a slowdown in the market is one thing, Trafford says there is nothing scarier than an actual bubble.

"When houses double in 24 months, you know that that's not going to keep going and everything goes south. People lose homes, people stop buying and everything disappears," he said. "They can't refinance because they have no equity. A bubble is the worst scenario, especially when it bursts."

Gazzola even bought his first house in the aforementioned housing bubble of 1990, and as painful as the burst was to the value of his house, by 1997 the value was back in tact.

"People should keep in mind that this is part of everyday economics," he said. "It doesn't always go up. When you purchase, purchase for the purpose of your home as a shelter and good investment versus rent. If rent is cheaper for you, then you should stay in the rental market."

Gazzola encourages consumers with "tougher credit" to maximize on their interest rates and correct their credit before looking into purchasing a home.

On the other hand, he encourages consumers to truly understand what is affordable to them, especially since the current low interest rates are not likely to be available come renewal time, and stresses that brokers make their clients aware of such possibilities.

While there may not be a bubble now, with things like bidding wars becoming more common in large urban areas, a little caution never hurt anyone.

Perhaps Peter Aceto, chief executive of ING Direct Canada, explained it best to Bloomberg News when he said "When Canadians are waiving conditions and paying 10 per cent more than asking for a home, it does give you some pause."

Listings Needed!

2010-02-09T10:00:00.000-08:00

If you are having any thoughts about selling your home, now is the time.

There is a shortage of listings on the market, which is creating an unhealthy balance. BUT this is a great opportunity for anyone who is thinking of selling.

Demand is high as inventory has been low for some time and will only grow as the busy spring market brings out even more buyers.

Here are the types of homes some of our buyers are looking for...

Core Beach
$2-3 Million
- ravine or lake property

Central (Davisville)
- $600-700,000
- Semi-detached or Detached

High Park
$700,000-$1.1M
- detached
- either renovated or needing work

If you are considering selling your home or know someone who is, or would like to know what your home is worth, contact me as soon as possible!

Cheers,
Mark
416.728.2499
mark@markrichards.ca

Top Home Design Trends for 2010

2010-02-05T11:48:00.000-08:00

Here are the Top 10 Trends for home design according to House and Home.

Also, check out this video for House and Home's Top Trends for 2010 as seen at their editor's Trends Breakfast by clicking here: Top Trends for 2010

Four-Poster Canopy Bed
A modern Calvin Klein statement bed.

Add instant cozy character to bedrooms big or small.

Products & Services: Calvin Klein Curator canopy bed, $4,800 (queen), DeBoer's.

Painterly Fabrics
Large patterns characterize 2010's textiles.

Loose brushstrokes, bold patterns and watery colourways mark the newest look in textiles and upholstery fabrics.

Products & Services: From left: Peter Dunham Textiles Mattress Ticking, $146/yd., Y&Co; Christopher Farr Cloth Flower Show, $230/yd., Y&Co; GP & J Baker Salcombe Rose, $162/yd., Lee Jofa; Schumacher Abazar Resist, $245/yd., Bilbrough; Madeline Weinrib Organic Block Print, $191/yd., Y&Co.

Subway Sign Art
Contemporary text makes for mod art.

A new version of the black and white photograph, where words and letters add graphic appeal.

Products & Services: Subway sign art, approx. $770, Restoration Hardware.

Oversized Pendant Light
Industrial yet glam lighting.

The bigger the better with 2010's ode to the industrial era. Think warm metal hues from oil-rubbed bronze to tarnished brass.

Products & Services: Visual Comfort Goodman lamp, $855, Elte.

Woven Storage Baskets
Hollace Cluny's round versions.

Swap hard, square storage baskets for today's tightly woven, round and distinctly modern styles.

Products & Services: Baskets, from $50 each, Hollace Cluny.

Bentwood Chair
A classic bistro chair.

This shapely chair has shed its humble roots and is showing up in elegant dining rooms. We love its airy openness, sweeping curves and modern sculptural shape.

Products & Services: Thonet chair No. 209, $1,552, Klaus by Nienkämper.

Modern Mobile
Three-dimensional art.

Mobiles aren't just art, they can even replace ceiling fixtures. They bring life and movement to a minimalist room.

Products & Services: Symphony in 3 Movements No. 62, mobile, $78, Flensted Mobiles.

Vintage Glass Bottles
Artisanal accessories add character.

Earthy glass objects in this year's hottest hues — bottle green and seashell pink — add a sense of history and patina to living spaces.

Products & Services: Bacchus bottles by Mitchell Gold + Bob Williams, from $155 each, Celadon Collection.

Weathered Hutch
Glass doors and a pale finish keep the look light.

The hutch is back as the storage option of choice, in response to rooms that were missing vertical notes and a spot for display.

Products & Services: Maison hutch, $3,898, Ethan Allen.

Market Watch

2010-01-22T10:15:00.000-08:00

Despite a gradual climb out the hole dug in late 2008, the real estate market in 2009 fared incredibly well. Rather than rejoicing, most are questioning if we are heading into a bubble.

Overall in 2009 there was a 17 percent increase over sales volume compared to 2008. December blew away it's sales volume performance from 2008 to 2009, increasing by a whopping 72% while prices in the GTA gained an average of 14%.

We saw the frenzy of multiple offers but this was primarily motivated by continued low inventory of homes on the market, particularly in the $800k and under segment. Consumer confidence and borrowing returned, and interest rates have remained incredibly low.

But let's look to 2010...

I think we'll see continued strength in the market for the first half of the year as there is still a lot of pent up demand from buyers who have not been able to find what they are looking for due to unusually low inventory. We have already started to see a trend in December of listing numbers rising for the first time in a year.

The talk within agents is that the spring market will come early this year - February instead of March. Since inventory is still low, homeowners who are planning to list in the spring will take advantage of the imbalance between listings and buyers and the pent up demand.

Once that rush has passed, I expect a relatively quiet summer as many people may be holding their breath to see what happens with interest rates. Depending on the impact, the fall will be the real test.

I'm predicting a return to a much more balanced market, a steadying of prices and a more standardized measure of values.

When should you sell? List in February to April.

When should you buy? If you have been looking for a while, your best inventory will be in the spring (if everyone follows my advice :) but be prepared to move forward as it may get crowded out there.

But, if you have flexibility in timing and are open to a variety of features and locations wait till the summer or fall.

Check out the full Toronto Real Estate Board Market Watch by clicking here.

Mortgages - This is getting a little predictable now!

2010-01-22T06:32:00.000-08:00

Hi…it's me.

Another Bank of Canada meeting this past week and no interest rate change again… this is becoming a bit boring, yawn.

The overnight rate has remained at .25% since last April and there's no sign of any changes anytime soon. A little inflation would help put some "zip" in my updates but employment will be an issue for at least another year so don't expect any inflation concerns in 2010/11. For now, the low financing costs allow home buying to continue at a healthy pace!

Recently you may have read that about 75% of borrowers chose fixed mortgages in 2009 and yet 28% of consumers used an independent mortgage broker. Therefore 72% of the borrowers would have followed the advice of their Banker - right? If you were a Banker would you suggest to your client to take a fixed/closed term at about 4% or a variable/convertible term at about 2%?

Hmmm?… I think the answer is obvious. Now for the 28% that used the services of a certified mortgage broker/planner, they most likely were exposed to neutral data on both fixed and variable mortgages and thus made a more educated decision. In this scenario, the odds are most chose variable even if rates are expected to go up, or they may have taken a 10 year fixed term. Some encouraging statistics are that those that did choose a fixed mortgage term, 70% of them took terms longer than 5 years.

So one can conclude that a traditional 5 year fixed term is not the choice that can be easily justified anymore… unless you are a Banker of course.

So then what is new for 2010? We here at Mortgage Architects are doing more for our mortgage clientele this year. Insurance is one of the most important financial decisions one can make because a proper insurance package will protect your most valuable assets… your family and home.

In my office, we take home insurance very seriously and therefore we have an independent "Certified Insurance Agent" on call that will comment on insurance options at no cost or obligation. Our priority is that the borrower knows that mortgage insurance is 100% optional (regardless of what your Banker may tell you) yet one should understand what is available before accepting or declining insurance.

The sooner one has a comprehensive understanding of their insurance needs the better. Murphy's Law is such that we need insurance when it is too late. The key to insurance is to start when you are young and healthy which typically keeps the costs down and the long term benefits greater. Connect with us anytime to ensure your coverage is adequate for both you and your family!

To complement our mortgage services, we will be reaching out with more products and services in 2010 so stay tuned… Here's to a "Healthy & Prosperous New Year for All".

Cheers… Peter, Andre & Team.

Booming Rebound, No Bubble!

2009-11-26T14:58:00.000-08:00

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

2009-11-25T11:37:00.000-08:00

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

2009-11-12T06:57:00.000-08:00

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!

2009-11-10T07:19:00.001-08:00

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

2009-11-08T09:41:00.000-08:00

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!

2009-10-29T01:38:00.000-07:00

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

2009-10-28T06:37:00.000-07:00

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

2009-10-27T11:33:00.000-07:00

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?

2009-10-02T06:45:00.000-07:00

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...

2009-10-01T19:43:00.000-07:00

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

2009-09-30T11:37:00.000-07:00

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

2009-09-29T11:45:00.000-07:00

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!

2009-07-09T10:15:00.001-07:00

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

2009-07-09T07:09:00.000-07:00

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!

2009-07-09T06:49:00.000-07:00

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

2009-06-11T06:58:00.000-07:00

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

2009-05-27T17:05:00.000-07:00

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!

2009-05-14T18:33:00.000-07:00

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!

2009-05-12T07:01:00.000-07:00

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!

2009-05-08T07:54:00.000-07:00

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)

Markets & Mortgage

2009-05-07T12:45:00.000-07:00

In April 2009, Greater Toronto REALTORS® reported 8,107 sales – down seven per cent from April 2008.

While April sales remained lower than last year, the housing market gained momentum on a month-over-month basis.

The seasonally adjusted annual rate of sales in April, at 80,900, was up 26 per cent from March and up two-thirds compared to January’s ten-year low.

“Conditions in the resale housing market have improved markedly this Spring,” according to TREB President Maureen O’Neill.

“Home purchases have increased as households have taken advantage of low interest rates and
slightly lower home prices.”

The average price for April transactions was $385,641 – down three per cent from last year.

“The rate of average price decline continued to diminish last month. This is due in large part to a tightening in the resale market,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis. “The level of sales relative to
new listings increased in April.”

For the full April Toronto Real Estate Market Watch click here.

From the Desk of Peter Majthenyi - My Mortgage Planner...

Building wealth using a re-advanceable mortgage

Re-advanceable mortgages with home equity lines of credit continue to gain in popularity.

What makes this mortgage such a great fit for many Canadians is that those of us in our homebuying years are always juggling to find a balance between paying off our homes and investing for the future.

Using a re-advanceable mortgage that includes a line of credit (LOC), we can actually do both.

Click here to read more.

Signs of an Early Rebound

2009-04-24T08:17:00.000-07:00

Check out this link for the full Globe and Mail Real Estate feature to find out what homes are selling for where you live...

http://beta.theglobeandmail.com/globe-investor/early-signs-of-a-rebound/article1061236/

Cheap & Hot....Today's Market & Mortgages

2009-04-23T12:25:00.001-07:00

It's been a crazy week. I sold a multi-million dollar home in 12 hours. 2 out of 10 homes my buyers want to see have already sold conditionally. I've also been in several multiple offers.

The number of homes sales is only down 7% from the same time last year according to TREB. Considering the insanity of last year that is really saying something.

And the current average price is only down 4% from $399,117 to $383,161. If everyone considered early last year to be an inflated market, it would appear that the current market is not in a downturn, but closer to a happy medium.

That is not to say that once spring fever is passed this momentum will continue trending upward. I still believe we have yet to see the trickle-down effect of job losses and the US economy and summer may cool off considerably.

Part of the activity is being spurned on by unbelievably cheap money.
As noted by Peter Majthenyi from My Mortgage Planner, "...the Fed lowered the overnight lending rate to .25% ... that's right .25% ... it has never been this low since Canada started recording interest rates at the beginning of the century."

On top of that, the Central Bank is assuring us that will not change until 2010!
For the first time, Peter is is recommending that working with a variable rate is not necessarily the way to go.

He says, "...variable mortgages performed better 88% of the time over the long term, but now we are experiencing that small 12% period when fixed may be better. If a 5-year fixed mortgage can be had for 3.75%, or a 10-year fixed for 4.99%...take a break from variable for now and revisit it upon the renewal when fixed rates may be higher."

Even if you are currently locked, it may make financial sense to break it. No matter what you current situation, you may be able to benefit.

Check out Peter's recommendations below as well as the mid-month TREB report.

Mortgages & Markets

2009-04-23T12:00:00.000-07:00

The Bank of Canada now has no room to further lower interest rates. On Tuesday April 21st the Fed lowered the overnight lending rate to .25% … that's right .25% … it has never been this low since Canada started recording interest rates at the beginning of the century.

So what's next? To everyone's surprise, our Government has assured us that interest rates will be kept low until June 2010 unless inflation becomes an issue, which seems unlikely given that our current recession is now predicted to be deeper and longer than expected. Not all of the news is bad though … if you have job security, this is your year to buy your home or adjust your mortgage financing at rates not even your parents had!

Now that variable mortgages will be reduced another .25%, many are attracted to the new rates of about 3%, but please remember that a mortgage is far more than a great rate.

Most of my past clients are enjoying variable mortgages at prime less .75%, which gives them a rate of 1.5% … some even lower. These lucky homeowners should NOT change their mortgages because rates cannot go up fast enough to merit locking into a fixed term of about 4%. The new pricing for variable mortgages has changed to prime plus .75%, which means a rate of 3%, a premium we have never experienced before.

If you choose a variable contract at prime plus .75% for the next 5 years, you will not be happy you locked into this product when normal discounts return to variable mortgages. If variable is what you prefer, then wait until discounting returns to the marketplace.

Until now, very few of my clients chose a 5-year fixed mortgage … it just didn't make sense. All data showed that variable mortgages performed better 88% of the time over the long term, but now we are experiencing that small 12% period when fixed may be better.

If a 5-year fixed mortgage can be had for 3.75%, or a 10-year fixed for 4.99% … I say new borrowers do not pay a premium for today's variable mortgages, but rather take a break from variable for now and revisit it upon the renewal when fixed rates may be higher.

Now is also the time to ensure your current "mortgage plan" is sound! If your rate is 5% or higher and does not renew in the next year, you may want to consider breaking your mortgage. Your discharge penalty may be justified by your annual savings at today's lower rates, which can also provide long term rate protection for the next 5 to 10 years.

Also remember that the future is a mortgage and line of credit combination, and the sooner you can transition to a financing package like this, the sooner you will start saving money. These types of mortgages provide access to your home equity in the form of a growing line of credit.

This is a free credit facility that provides cheap financing for tax-deductible investing, renovations, or for emergency cash requirements … if done right, it could be the last financing you'll ever need!

There have been more innovations in mortgage products in the last 3 years than in the last 30, and our responsibility is to put your choices into perspective. Let us help you with a "mortgage plan" that addresses your expectations … together we'll ensure you pay less interest for your home, and prosper financially sooner.

Anytime you're ready to learn more …

Peter & Team

416) 410-3298

peter@mymortgageplanner.ca

http://www.mymortgageplanner.ca/

Toronto Real Estate Board April Mid-Month Market Report

3,681 TRANSACTIONS IN FIRST HALF OF APRIL

TORONTO, April 17, 2009 - Greater Toronto REALTORS® reported 3,681 transactions in the
first half of April, down seven per cent compared to 3,955 during the same period last year.

“In lock-step with the favorable March results, resale housing market conditions in the first half of April were markedly improved compared to the winter time,” said TREB President Maureen
O’Neill.

“Households that were on the sidelines at the beginning of the year are now taking advantage of
lower interest rates and lower home prices.”

The average price for MLS® sales was $383,161, down four per cent from $399,117 last year.

“The average home price in the GTA stabilized as resale market conditions tightened over the
past two months,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis.
“Existing home sales increased relative to new listings.”

Source: Toronto Real Estate Board 2009

Where are the biggest price drops?

2009-04-11T09:27:00.000-07:00

Last time we focused on hot up and coming neighbourhoods. Today I'm featuring an article from Toronto Life that shares which areas have had the biggest price drops - where less can get you more.

As I've said all along, real estate is local. Buyers will be pleased to know that if they are looking in the any of the following areas, they can definitely get bang for their buck and have an opportunity to get into some of Toronto's most sought after neighbourhoods...

Toronto Life - Less is More
Neighbourhoods with the biggest price drops By Bert Archer

FOREST HILL

Median prices in the prestigious environs of the MLS zone known as C3 rose by almost nine per cent in September, then tumbled by 25 per cent in October and 15 per cent in November.

LAWRENCE PARK

Median prices in C4 declined over September, October and November by seven per cent, 17 per cent and almost 32 per cent, respectively—proof that million-dollar homes are the first to tumble in a recession.

ROSEDALE

Though averages were all over the place in C9, ranging from a 39 per cent decline in October to a 52 per cent increase in November, the medians tell the story in this, the third of our city’s three ritziest ’hoods, with precipitous drops of seven per cent, 49 per cent and 24 per cent in the last three months of the year.

LEASIDE

The C11 zone is home to the Bayview strip of decor stores and gourmeterias. Close to the action, houses sell for a million, and farther out, they sink into the $300,000s. But with drops of 19 per cent, 54 per cent and 39 per cent, it’s clear that nice as it is, this upscale stretch is no match for its more central counterparts.

CENTRAL ETOBICOKE

W9 includes western neighbourhoods on the edge of the burbs. Median drops of 14 per cent, 23 per cent and 60 per cent brought prices from a median of $327,000 in November 2007 to a dismal $132,000 a year later. On the bright side, there’s no better part of town to get a deal.

Interested in checking out listings in any of these neighbourhoods?

Email me today at mark@markrichards.ca and I'll send you a link of properties available now.

Click on the following links for neighbourhood profiles:

Forest Hill

Rosedale

Lawrence Park

Leaside

Central Etobicoke

Ouch! The New Land Transfer Tax Hurts.

2009-04-10T10:34:00.000-07:00

If you're like most residents of Toronto, you want the city to repeal the new land transfer tax. That's no suprise as there is evidence that its hurting the market and our economy.

Check out the details of a poll conducted by the Toronto Real Estate Board to find out how the land transfer tax is impacting you today...

Toronto Real Estate Board - Torontonians Want Toronto Land Transfer Tax Repealed: Poll

With Toronto City Council scheduled to debate and vote on the City’s proposed 2009 Operating Budget on March 31st, public opinion poll results, released today, show that 65 per cent of Torontonians believe that the Toronto Land Transfer Tax should be repealed.

The poll was conducted by the Environics Research Group Ltd. for the Toronto Real Estate Board. “REALTORS® strongly believe that Toronto City Council should scrap the Toronto Land Transfer Tax, and the public agrees,” said Maureen O’Neill, President of the Toronto Real Estate Board.

“The Toronto Land Transfer Tax is not a fair tax and is hurting Toronto’s economy.”

The poll also found that 57 per cent of Torontonians believe that the Toronto Land Transfer Tax is hurting the real estate market and 62 per cent believe that the City has not taken adequate action to help stimulate the economy.

“Torontonians want more action from the City on the economy, and they understand that the Toronto Land Transfer Tax is having a negative impact,” said O’Neill. “One of the best ways that the City can take action to help with the current economic situation is to roll back the Toronto Land Transfer Tax.”

A recent study conducted by the C.D. Howe Institute and Economics Professors from the University of Toronto determined that the Toronto Land Transfer Tax is having a significant impact on Toronto’s real estate market, reducing housing sales by 16 per cent and values by 1.5 per cent in 2008 alone.

A separate recent study, conducted for the Canadian Real Estate Association, found that one out of every 100 jobs depends on spending associated with re-sale housing sales, on things like renovations, furniture, and appliances.

This means that approximately 14,000 jobs in Toronto depend on re-sale housing transactions. TREB believes that, by impacting the real estate market, the Toronto Land Transfer Tax is risking these jobs.

The Environics poll also found that 60 per cent of Torontonians think that the City is not being run as efficiently as possible.

REALTORS® are calling on City Councillors to focus their budget efforts on options recommended over a year ago by an independent blue-ribbon panel of business and labour representatives, appointed by Mayor Miller.

“Over a year ago, the Mayor’s Fiscal Review Panel identified, literally, hundreds of millions of dollars in savings and efficiencies that the City could be taking advantage of,” said O’Neill. “The City’s budget efforts should be focusing on fair options, like those recommended by the Mayor’s Fiscal Review Panel.”

The poll of 500 Toronto residents aged 18 years or over was conducted by telephone between March 12 and March 15, 2009, and is considered accurate to within +/- 4.5%, 19 times out of 20.

March Market Report - Positive!

2009-04-09T02:20:00.000-07:00

Check out this article from the Globe and Mail on the spring market as well as the full Toronto Real Estate Board Market Watch report for March!

Spring brings new signs of life in housing market
Hints of recovery as volume of existing home sales up 7 per cent in March
- Virginia Galt and Josh Wingrove - Globe and Mail

Looking to get into a bigger home, townhouse owner James VanderLinden decided last month was the time to make a move.

A buyer in a struggling economy, he bought a new home under asking price - paying $1.1-million in midtown Toronto - but hadn't yet sold his first place.

"I wanted to take advantage of the market," said Mr. VanderLinden, 34, who works in online advertising. "I knew also that selling my current house, I would probably not get as much money for it as I would if the market was up."

But his fears were put to rest two days later, when his townhouse sold for $275,000, just $4,000 under his asking price. It's a cautious sign for optimism that's playing out across the country, where sales volumes are up. After a long, harsh winter of woe, a housing sales thaw may be on its way.

The national average resale home price was $288,641 in March, down 7.7 per cent from a year earlier - the smallest year-over-year decline in six months.

The Canadian Real Estate Association said yesterday that the volume of existing home sales was up 7 per cent in March, on the heels of February's 10.3-per-cent gain in activity.

"The story is that price reductions are working as intended. They are stabilizing the market and they are drawing buyers...who are taking advantage of improved affordability," said Gregory Klump, CREA's chief economist.

Toronto real-estate broker Theodore Babiak recently listed a semi-detached home in the city's west end. Within a day, he had three offers for the home, which sold for $10,000 over asking price - a phenomenon all but unheard of two months ago.

"There's more optimism. There's more enthusiasm among buyers. There's definitely more volume," said Mr. Babiak, an agent with Royal LePage Real Estate.

According to the CREA report, the largest monthly increases in activity were in British Columbia, at 13.6 per cent, and Ontario, at 10.5 per cent.

The burst of sales may be nothing more than the annual spring surge, aided by unseasonal warm spells in parts of the country. The more telling year-over-year picture was bleaker, with sales down nationally by 13.7 per cent. The national average resale price also dropped to $288,641 - down 7.7 per cent from a year earlier.

But it was the smallest year-over-year decline in six months, as some sellers resisted demands for further discounts and some buyers waited for further price declines.

"Call it a standoff or whatnot," said Vancouver realtor Shaun Kimmins. "Buyers are wanting tomorrow's prices and sellers are wanting yesterday's prices."

That was the case for Curtis Muir, a 30-year-old looking to take advantage of low interest rates and buy his first home. He's expecting to pay under asking price, but was surprised when a condo in the Toronto area where he's looking recently sold above its asking price.

"I look at that and it makes me [think] I've got to do something right now because it's starting to come back. A bidding war? ... That's crazy," Mr. Muir said. "I just feel like that the market's good enough that I should be able to lowball a little bit and get what I want."

The possible turn in fortunes comes on the heels of the widespread interest-rate cuts - five-year mortgage rates are as low as 4 per cent - that attracted buyers such Mr. Muir, as well as government efforts to stimulate home buying.

"I think [the market] is going to remain strong as long as rates stay in the general range they're in," said Mr. Muir's agent, Dan Ellenberg of Royal LePage.

But economists were reluctant to characterize the increased sales activity as the beginning of a full-fledged recovery. Bank of Montreal economist Robert Kavcic noted that sales activity is still down more than 30 per cent from its 2007 peak.

"Still, the improvement in recent months is an encouraging sign that the Canadian housing market has crossed the halfway point for this downturn," Mr. Kavcic said.

"Affordability is the highest in about four years, which should help fuel a rebound in sales once the job market stabilizes."

Sales of existing homes listed with the industry's MLS service totalled 35,225 units across Canada in March - 18 per cent higher than in January, when activity was at its lowest in a decade.

Mr. Kimmins, of Century 21 In Town Realty, said it's a buyers' market and there is now a sense among buyers "that interest rates are about as low as they are going to go. There is still a question as to how low the market is going to go," he said.

Home prices have been hit hardest in Western Canada and in Ontario manufacturing centres affected by layoffs, but have remained strong in some cities, including Saint John, N.B., and Regina, he said.

The price depreciation appears to be kick-starting the Vancouver market, said real-estate agent Austin Gangur. Mr. Gangur said a couple who balked at the price of a Vancouver loft last August just bought a unit in the same building for $50,000 less.

"They moved in three weeks ago," said Mr. Gangur, an agent with Sutton Group West Coast Reality. "They are happy as flies on a rib roast."

March Resale Housing Market Brings Positive Results

April 6, 2009 -- In March 2009, Greater Toronto REALTORS® reported 6,171 sales – down seven per cent from March 2008, representing the smallest year-over-year decline in the last five months. The average price for March transactions was $362,052 – down less than five per cent from the same month last year.

Click here to see the full Toronto Real Estate Board Market Watch for March 2009.

In the News

2009-04-02T09:48:00.001-07:00

Harmonized Tax Increases Costs for Buyers

Under the provincial government's plan, the harmonization of GST and provincial tax will make costs related to the purchase of a home, such as lawyer fees, home inspections and real estate commissions subject to the 8% provincial tax. This applies to homes sold for $400,000 and above.

Keep in mind, the additional 8% genearlly applies to closing costs for resale homes, however new home sales will take the major hit as the tax applies to the sale price of a new home.

At a time when the land transfer tax is already having an impact on the market and the economy has it's own challenges, it's hard to believe there was much rationale in this decision. For every home that is not purchased, an average of $33,000 is taken out of the economy in spin-off spending.

We're busy focusing on repealing the land transfer tax, and now they hit with this!?!

Read more below...

Blended tax drives up costs for both new and resale home buyers in Ontario

The Canadian Press - TORONTO — Homebuyers in Ontario will face higher costs for most newly built houses and for services to close deals on resold homes as part of the Ontario Liberal government's plan to harmonize the GST and provincial sales tax.

In its budget Thursday, the provincial government released details of a initiative, which will apply a 13 per cent tax to new homes sold for more than $400,000 starting next year.

The tax plan will provide a rebate for new homes sold between $400,000 and $500,000, though it will fully tax the value of new homes worth more than $500,000.

A 13 per cent tax on a high-end house in Toronto worth $1 million would add $130,000 in taxes on the property, in addition to provincial and local land transfer taxes currently charged.

Resold homes are exempt from the sales tax on their value, but buyers will still face higher taxes on all the upfront costs associated with closing the deal, such as legal fees, movers, real estate commissions and home inspection charges.

The shift will be particularly hard on Toronto residents because they're still reeling from a city land transfer tax introduced last year on top of the provincial land tax.

"The timing of this tax is lousy at best," said Toronto Real Estate Board spokesman Von Palmer.
"The reality is that the timing is never good, but this is bad."

Palmer said that could cause some Ontario residents to be more reluctant to buy.

"We know that housing is the economic engine. Every housing transaction you take out of the economy you lose $33,000 in economic spinoffs - furniture, appliances, renovations," he said.

A recent study from the Building Industry and Land Development Association said that the tax will add an average $46,676 to buying a new home in Toronto - costing home buyers $2.4 billion more each year.

However, the industry group noted there were some measures in the budget to cushion the tax impact, including a rebate of part of the provincial portion of the tax for new homes priced up to $500,000.

"Harmonization of PST and GST without any offsetting measures by the provincial government could have ripped $2.4 billon out of the pockets of new homebuyers, slamming the homeownership door shut in the face of many Ontarians," said Stephen Dupuis, president and CEO of the house building group.

The tax changes sparked concern at the Ontario Real Estate Association which warned that resale homes would face more than $2,000 in extra charges related to closing fees, such as legal services and moving costs.

Currently, Ontario consumers pay only the five per cent GST on those services, but would face a 13 per cent blended tax under the new system.

"Now is not the time to be erecting barriers to home ownership," said Pauline Aunger, president of the association, which represents the province's 47,000 real estate brokers.

"We need consumers to invest in housing to help get our economy going again."

The association, whose members rely on real estate sales for their livelihoods, said home sales in Ontario fell 29 per cent in February from the same year-ago period.

Most experts say the sales slump reflects increasingly nervous consumers worried about job losses and the recession and high prices and rising local taxes that have driven up the cost of buying a house.

"These additional taxes could price some homebuyers, especially first-time homebuyers, right out of the market," said Aunger. "Harmonizing will not help homebuyers in any way."

The industry group said that for a resale house priced at $360,000, a harmonized tax could add more than $2,000 to closing costs. In total, such a tax would add $313 million annually in new taxes to resale home transactions.

Copyright © 2009 The Canadian Press. All rights reserved.

Energy Audit Proposition

Adding yet another bump in the road to home ownership and real estate transactions, the Ontario government proposed that every home sold be subject to a mandatory energy audit, costing home sellers approximately $300.

But the cost is not necessarily the issue. The details of how this proposal would be implemented is what's cause for concern. Limited numbers of authorized auditors, standardization of the audit process, and much more.

Read on to find out the implications of this proposal...

Mandatory energy audits on home sales wrong, real estate agents say
Globe and Mail - KATE HAMMER
February 25, 2009

In the wake of a new municipal land-transfer tax and unmoored by a sinking economy, Toronto real estate agents are bracing for a new storm on the legislative horizon: Mandatory energy audits for home sales.

Ontario Minister of Energy and Infrastructure George Smitherman's proposed Green Energy Act, which was introduced to the Ontario legislature Monday, contains loosely defined "mandatory conservation and energy efficiency practices" that would cost home sellers about $300.

But with homes lingering on a stagnating market, and average sale prices dropping throughout the GTA, even the distant possibility of one more fee or one more bureaucratic obstacle, leaves real estate agents feeling seasick.

"It's not so much the dollars that it costs you to do the audit, I think you have to think long-term in terms of how will that impact your property value, what will that do to the market in terms of potential bottlenecks," said Von Palmer, spokesman for the Toronto Real Estate Board. "So the devil's always in the details and I think that's where we need to be careful."

But "the details" remain fuzzy, and the legislation that was introduced Monday does little to explain the logistics of mandatory audits.

A handful of companies throughout the GTA offer energy audits. Their services vary, but generally involve a battery of tests that measure the efficiency of major household appliances as well as the efficacy of a home's insulation.

"There's several other tests, like they calculate the [efficacy] of the insulation, they check the windows and the window stripping, the efficiency of the furnace, the efficiency of the water heater, the toilets, pretty much anything that can have an impact on the overall efficiency of the home and sort of the energy costs and the energy consumption," said Andrew McRae, an energy representative for EnWise Power Solutions.

Homeowners are also eligible for government rebates toward the cost of the inspection, as well as thousands of dollars more toward implementing suggested upgrades. Most energy auditors will also handle the necessary paperwork for a government rebate.

Some homeowners benefit more than others from an energy audit, according to Mr. McRae. Most modern appliances and materials are relatively energy efficient, and the owners of newer homes may struggle to recoup to cost of an audit, he said.

Sales in Toronto have been down every month since the land-transfer tax was implemented in 2008, according to Mr. Palmer. They plummeted more than 23 per cent in the first two weeks of February this year compared to the same period last year, while the average sale price fell nearly 8 per cent, according to data collected by the real estate board.

The 450 inspectors throughout Ontario will quickly become overwhelmed attending to the hundreds of thousands of homes sold within the province every year, and more will have to be trained to meet the demands of mandatory energy audits, Mr. Palmer said.

Additionally, issues such as standardization, timing, and payment will have to be worked out.

"There's going to be some coinciding policies that need to be made as well that would include the specifics around the energy audit," said Amy Tang, a spokesperson for Mr. Smitherman. But what shape those policies would take, Ms. Tang couldn't say.

My Clients Want Your House!

2009-03-17T11:37:00.001-07:00

The spring market is heating up. I have a lot of buyers who are ready to move but haven't found the home they want because supply is so low right now.

That's why I'm proactively putting out a call to action to anyone who is thinking of selling.

Check out my buyers wish list to see if your home or someone's you know fits...

CORE BEACH

- $800,000 - $1.2M
- 3 + bedrooms
- w/parking

*Also same as above but with rental income or 3-plex

- $1M - $2.5M
- 4 bedroom
- pool size lot

BEACH/TORONTO EAST
- $400,000-$600,000
- 2-3 bedrooms
- w/parking

LESLIEVILLE/RIVERDALE
$300,00-$400,000
- 2+ bedrooms
- w/parking

CENTRAL/ANNEX
- $900.000 -$1.5M
- detached or semi
- 4 bedrooms
- victorian style

HIGHPARK/BLOOR WEST
- $300,000 - $400,000
- semi-detached or townhouse
- 2 + bedrooms
- w/parking

BEACH/RIVERDALE
- $450,000-$800,000
- income properties

TORONTO CENTRAL
- $700,000 -$1m
- income properties

Do you have a home, or know anyone whose home meets any of these buyers' wish lists?

Contact me at mark@markrichards.ca or 416.728.2499 today!

RE/MAX Hallmark Realty Ltd. Expands its Reach in the Beach

2009-03-17T10:17:00.000-07:00

Toronto, ON (March 13, 2009) – RE/MAX Hallmark Realty is expanding its reach in the Beach with the arrival of three award-winning real estate industry veterans from its largest competitor. Twenty-three year veteran, Al Sinclair and his ten-person strong team ranked among the top five producers for his previous company in the GTA, along with Diamond award winners Michelle Walker and Mark Richards are now part of the RE/MAX Hallmark team.

“We are delighted that these outstanding realtors recognize the growth opportunities and the level of support that are offered by being part of RE/MAX Hallmark,” says Ken McLachlan, Broker of Record, RE/MAX Hallmark Realty Ltd. “Their arrival firmly gives us added presence in the Beach and the surrounding neighbourhoods when it comes to resale and new construction.”

The arrival of Al Sinclair, Michelle Walker, and Mark Richards will allow RE/MAX Hallmark Realty Ltd. located at 2237 Queen Street East, to offer more listings with its market share increasing from 40 to 55 per cent.. Sinclair’s 10-person strong team includes his wife Janet, who specializes in new construction along with residential resale. Michele Walker and Mark Richards have developed over the years a strong reputation in our real estate community. Their client driven focus will continue to flourish under the RE/MAX Hallmark banner.

“RE/MAX is the number one brand for residential real estate in Canada and I am excited to finally be a part of it,” says Al Sinclair. “We have been bringing best of class residential real estate services to our clients for some time. With the RE/MAX brand behind us now, we are going to be able to do even more for them.”

RE/MAX Hallmark Realty has over 500 realtors and seven offices throughout the GTA, servicing central Toronto, Leaside, the Beach, North Riverdale, Lawrence Park, Don Mills, and Richmond Hill.

“Al, Michelle, and Mark are among the best and the brightest in the business and I’m so pleased that they have decided to become part of our team,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “The mass exodus of top tier talent from a major competitor is proof positive that we set the standard for realtors.”

RE/MAX is Canada’s leading real estate organization with over 17,000 Sales Associates in more than 670 independently-owned and operated offices. The RE/MAX franchise network, now in its 36th year of operation, is a global real estate system operating in over 70 countries. More than 6,800 independently owned offices engage over 100,000 Sales Associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral and asset management.

Hot Up & Coming Neighbourhoods

2009-03-16T10:40:00.000-07:00

Which neighbourhoods are the next Leslieville?

Check out the next hot neighbourhoods in the GTA. Our picks are based on my own favorite spots as well as on the March edition of Toronto Life "A Buyer's Market".

Danforth Village

Located just east of Greektown, this area of town satisfies a lot of people's wish lists and is a hot area for first time home buyers. It offers easy access to both midtown and downtown either by car or by jumping on the Danforth subway line.

The area is going through improvements but is not perfect yet. There is a good selection of of homes that can be bought and renovated but also great values on homes that have already been improved.

Homes are accessibily priced in the $400,000's.

Leslieville East

Located between prime Leslieville and the Beach (Leslie to Coxwell, Eastern up to Gerrard) this area is tucked between two great neighbourhoods that are just 15 minutes to downtown.

Leslieville has already been through the major gentrification and offers amazing shopping and restaurants while the Beach is an established family community.

But there is a little pocket in between the two that is a little rough and has amazing potential for buyers who want the best of both worlds but are willing to let the neighbourhood come up around them.

Detached homes with improvements can be snapped up in the $500,000 and semi's can be had for $350,000-$400,000.

Birchcliff

Feature Property - 59 Briar Dale

I'm seeing a big trend of families who have stuck it out in prime Beach, but who have outgrown the hustle and bustle and want more property to breath, especially as their kids are getting older. A lot of them are heading to the Bluffs.

Again, it has all the markings of great potential - amazing lot sizes, a wide variety of homes (from cute bungalows and homes that need improvement to stunningly renovated homes with inground pools near the water) and you're still a decent commute to downtown or the business parks north of the 401.

The strip along Kingston road is slowly but surely starting to improve and a lot of 'bluffers' have great shopping and restaurants just minutes away in prime or upper Beach as well as the 'big box' standards at Danforth and Victoria Park.

Prices are all over the map depending on what you are looking for but the value and the potential is definitely there.

To have my favorite listings in each hot neighbourhood sent to you today, email me at mark@markrichards.ca.

Cheers,
Mark
416.728.2499

Everybody's Got An Opinion

2009-03-05T07:03:00.000-08:00

The most common question I get asked these days is "What is going to happen with the real estate market?"

You might put the question up there with "When is winter going to be over?" or "When will my RRSP statement stop making me cry?".

The truth is, no one really knows. If someone did, they'd be very rich and very lucky.

But I do love to hear everyone's opinion. I'm collecting these predictions on my poll to the right. Email me if you want to put money on it as I'm always up for a good bet. We'll call it the Real Estate Pool.

Although we don't know exactly what is going to happen, I'm going to share my view on the market, as well as things to consider when you read the news reports.

At the end of my blog I've also included excerpts from major real estate organizations and associations if you really want to dive in to the muck.

Real Estate is Local

The majority of what you are reading out there (and in the clips below) is based primarily on national, provincial and city-wide numbers.

Contrast what is happening in the GTA compared to Vancouver and it's a totally different picture. Prices in the west were incredibly over-inflated and now they have a harder fall. It's even different from Rosedale to the Beach.

Lumped into those stats are various types of homes; condos, the burbs, and large detached homes. There is no accouting for the unique nature of each of those markets.

The market on a wider scope can seem daunting, especially when you blend it all together and look from 20,000 feet.

So unless you own homes of every shape and in every part of the country, read on...

Don't Trust the Local Stats Either

You can't take local monthly stats for one MLS sector literally (i.e. E02, C09) as average home prices can sometimes be based on just a handful of sales.

If a home sold for $1M in an area that typically has homes in the $750,000 range, the average price will be pulled up and vice versa.

I've found the best measure of what is happening in the market is to talk to agents as they are the ones who know the history, the activity and the pricing strategies the best.

In the Beach for example, we're seeing about a 7-8% drop since the peak months of 2008 but we don't expect to see much more of a drop this year, if any.

Supply and Price Range

Supply and demand are playing a huge role in countering some of the media predictions. In some areas, we are still seeing multiple offers for homes because they are the only decent property in a particular price range.

Winter Blahs

The recent stats are based on months that are traditionally slow. The winter season is also when sellers are more negotiable as listings in this market usually have a different motivation for a sale (relocoation, purchase of another property etc.).

The typical pattern of listing and shopping in months other than the dead of winter are coming back now that we are in a more balanced market.

The Spring Market

I'm predicting a rush of activity this spring. As per my comments about seasonality, people who have been thinking of selling (but didn't have to before) will be bringing their homes out on the market which will be a nice boost for inventory.

There is a pent up demand of buyers...those who were looking back the in fall but wanted to wait and see, either because of their own circumstances or to see the market drop a bit before they jumped in.

Plus, there is a new influx of buyers who are waking up to the opportunities out there.

I personally just bought a home that had been on the market for 70 days and got it for nearly a $100,000 under its original list price.

Final Preductions on the Market...

My final answer? It depends.

This is not a scapegoat answer, it's the truth. It depends where you are looking and what you are looking for.

Thinking of Selling?

If you are thinking of selling, CALL ME NOW. I have so many buyers (and other agents) who are looking but the low inventory of listings on the market is limiting their search.

I am literally in the process of contacting clients to ask them if they want to sell, knowing their house is perfect for someone who is searching.

There are also a lot of sellers dipping their toes in the water to test things out so keep in mind that the perfect home may not even be on MLS. I have a lot of clients who are listing their homes exclusively first before going on the market formally.

Thinking of Buying?

To wrap up the most common question for buyers, "Should I wait for the market to drop more before I buy?". If you know when the market will drop more, then by all means let me know when you think that is happening and we can find a home.

Sure, there is a possibility that prices may drop more but you may find yourself looking at higher interest rates in tandem. You may also find yourself in competition with other buyers.

My biggest testimonial to my view that there is great value right now is the fact that we recently sold our house and bought our next family home, plus we are about to buy another.

Thinking of doing both?

As I said in a previous blog, now is a great time to trade up as it costs you less in a down turning market than the peak market of the past.

Call me today so we can talk specifics and figure out the timing that works best for you.

Cheers,
Mark
416.728.2499

MARKET REPORT SNAPSHOTS:

Royal LePage

"Nationally, average house prices are forecast to dip by 3.0 per cent from last year to $295,000, while transactions are projected to fall to 416,000 (–3.5 %) unit sales in 2009. In spite of this cooling trend on a national level, price and activity gains are anticipated in some provinces."

Full Royal LePage Forecast

RE/MAX

"By year-end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000."

Full RE/MAX Forecast

Canadian Housing and Mortgage Corporation

"Existing home sales, as measured by the Multiple Listing Service (MLS®)1, are expected to decline 14.6 per cent during 2009 to 370,500 units. In 2010 the level of MLS® sales is expected to increase by 9.3 per cent to 405,000 units. The average MLS® price is also expected to decrease over the course of 2009. Average prices are forecast to be $287,900 for 2009, a decline of 5.2 per cent, while 2010 will see little change from 2009 average prices."

Full CMHC Forecast

Canadian Real Estate Association

Prices are forecast to stabilize in 2010, with annual price increases of one per cent or less in five provinces. The weighted national MLS® average price is forecast to decline 6.4 per cent in 2009, and hold steady in 2010.

Full CREA Forecast

Realtor.ca (formerly MLS.ca)

"The beginnings of a Canadian economic recession and a dramatic downturn in consumer confidence late last year means that the housing market is facing significant headwinds in 2009," said CREA Chief Economist Gregory Klump. "Sales activity dropped sharply and price declines accelerated in the fourth quarter of 2008. The consensus economic forecast calls for an economic rebound in the second half of 2009, so an improvement in housing market trends is likely to wait until next year."

Full Realtor.ca Forecast

Toronto Real Estate Board

"It should be noted that the GTA housing market has followed the broader economic slowdown, but was not a cause of the downturn. Home prices remained affordable throughout the new millennium. The average family can still qualify for a mortgage on the average priced home. This remains the case today. Given that we are not facing an early-1990s-style affordability crisis, the rebound in the housing market will likely be quick once economic recovery takes hold."

Full TREB Market Report

Markets & Mortgages

2009-03-04T18:48:00.000-08:00

Check out below for the Toronto Real Estate MarketWatch Report and the current prime rate.

If you want more information on any area or to find out the current value of your home, contact me today....416.728.2499 or mark@markrichards.ca.

PRIME RATE

Prime rate is now at an unbelievable 2.5% at Bank of Montreal and other banks are following suit.

What does this mean for your bottom line?

Every $100,000 of a mortgage will only cost you $488.78 per month based on the Bank of Montreal posted 5 year closed variable rate of 3.3% over a 25 year amortization.

Now is one of the chepest times in recent real estate history to buy or trade up.

Contact Peter Majthenyi today at 416.410.3298 or peter@mymortgageplanner.ca to see how he can help you.

TORONTO REAL ESTATE BOARD MARKETWATCH -FEBRUARY 2009

Check out neighbourhoods in the GTA to find out average prices and sales activity for the past month:

Toronto Real Estate Market Watch

TORONTO - Thursday, March 5, 2009 -

Toronto Real Estate Board Members reported 4,120 sales in February 2009 compared to 6,015 sales recorded in February 2008. The average home price was $361,305 last month compared to $382,048 during the same month last year.

“A considerable number of transactions continued to take place in February 2009. Motivated buyers and sellers, who were aware that market conditions changed over the past few months, were able to negotiate transactions acceptable to both parties,” said Toronto Real Estate Board President Maureen O’Neill.

On a month-over-month basis, sales and average price were above January levels of 2,670 and $343,632 respectively. The housing market is seasonal. Traditionally, in the first half of every year, sales and average price climb to their highest levels in late spring before trending lower from July onward.

“While the economic downturn has had an impact, the GTA housing market is resting on a solid foundation. Current home prices and mortgage rates suggest that GTA homes have become more affordable on average,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “A greater number of home buyers could take advantage of this affordability once their positioning in the economy becomes more certain.”

Typically the spring real estate market tends to experience more activity and with the Canadian economy experiencing a period of low mortgage rates and strong immigration, this trend could continue. According to Statistics Canada, Canada welcomed 247,202 permanent residents in 2008, 70,000 more than in 1998, and well within the government’s planned range of 240,000 to 265,000 new permanent residents for 2009.

The TREB President pointed out that Greater Toronto REALTORS® are an integral part of the real estate transaction process. “TREB Members are uniquely positioned to help home buyers and sellers adapt to changing market conditions,” added Ms. O’Neill. “In addition, TREB continues to advocate public policies that do not threaten affordability but support home ownership in the GTA such as lower taxation and less regulation.”

Globe & Mail - Optimism returning to housing market, RBC survey finds

2009-03-04T07:41:00.000-08:00

Optimism returning to housing market, RBC survey finds
by VIRGINIA GALT
Globe and Mail Update
March 4, 2009 at 4:04 PM EST

Confidence appears to be seeping back into the housing market, with young Canadians the most optimistic that now is a good time to buy, according to the Royal Bank of Canada's annual homeownership survey.

Thirty-year-old David Morris, who owns a condominium in downtown Vancouver, is among those actively planning to purchase a home. He's looking to sell his condo and trade up to a house in Vancouver's trendy Kitsilano or North Shore districts – a move that would have been out of his reach in the overheated real estate market of recent years.

Falling prices, low interest rates – and the fact that he is getting married at the end of this year – have factored into Mr. Morris' decision to buy.

“We have made the decision to move forward. It's not a situation where we're going to force it, but if we can find the right house for the right price, we have made the decision to get serious about it,” said Mr. Morris, a commercial real estate broker.

“From a buyer's perspective, it's encouraging …Now is a good time to come in and find a home that you love, that isn't going to break the bank.”

In a survey of 2,026 Canadian consumers, conducted in the second week of January, the Royal Bank found that 65 per cent of respondents believe it is a buyers' market now.

Of those surveyed, 9 per cent said it is “very likely” they will purchase a home or condominium in 2009 or 2010, and another 18 per cent rated the prospect of purchasing a new home as “somewhat” likely.

“Additionally, almost half indicate it makes sense to buy a home now versus waiting until next year.”

Young adults and renters are most likely to spark an upsurge in home sales, Royal Bank said in releasing its survey results.

“In the under-35 group, 48 per cent said they plan to buy, which is up sharply from 36 per cent last year. Renters also appear to be saying they are tired of paying someone else's mortgage payment, with 38 per cent planning to become homeowners in the next two years.”

Although this optimism is not reflected in the most recent sales statistics – the volume of sales in the Toronto area, for instance, was down 47 per cent year-over-year in January – Royal Bank predicts that lower prices will lure a growing percentage of Canadians back into the housing market in the next two years.

Toronto real estate agent Geon van der Wyst noted that consumers do not always follow through on their intentions – although it is encouraging that more Canadians appear to be thinking about buying homes.

“Intention is the step prior to making an educated decision… and I'm sure a lot of those people with intentions will move forward with purchases, it's just a matter of finding the right time,” Mr. van der Wyst said.

Karen Leggett, the Royal Bank's head of home equity financing, said low mortgage rates “and favourable housing prices are influencing home purchase intentions this year and may be the reason why more Canadians are poised to purchase over the next two years.”

Ms. Leggett said the poll, conducted for the Royal Bank by Ipsos Reid, found that the vast majority of Canadians believe that the purchase of a home is a good investment. “The current economic environment does not appear to have dampened Canadians' overall confidence in the housing market,” she said.

Mr. van der Wyst said there are good deals to be had, from the buyers' standpoint. However, he added, many prospective buyers – particularly first-time buyers – are still uncertain about the best time to plunge into the market.

“We tend to hand-hold these first time-buyers, nervous first-time buyers, especially around here where they know the prices are starting to dip – and who knows where they will continue to dip before the recovery starts?”

Mr. van der Wyst said that, especially in the current economic environment, he screens prospective buyers carefully before taking them to look at properties. He noted that the banks are also “pretty stringent” in qualifying consumers for mortgages.

“Interest rates are at historic lows and borrowing money is very, very affordable. If you have steady employment and you have some financial responsibility along with a good interest rate, now is a really, really good time to purchase a property,” said Mr. van der Wyst, an agent with Royal LePage.

“At this time, employment stability is very important. It would be really unfortunate to see someone lose their job just as they were about to close on a property,” he said.

A number of leading Canadian economists have observed that Canada's rising unemployment rate has eroded consumer confidence, and other recent housing forecasts have been less upbeat than the Royal Bank survey.

Canada Mortgage and Housing Corp. projects that, in spite of falling prices, the volume of existing home sales is expected to drop by 14.6 per cent in 2009, and then rise by 9.3 per cent in 2010.

Average home prices are forecast to fall 5.2 per cent to $287,900 in 2009. Next year, prices are expected to remain flat, according to the federal housing agency's forecast.

Ms. Leggett said Royal Bank is not forecasting “a huge housing rebound, by any stretch,” but there are reasons for cautious optimism that the market will start to recover later this year and next year.

Following the overheated market and bidding wars of the past few years, housing is once again becoming more affordable and there are good buying opportunities for consumers “who have good solid certitude around their job prospects and have the financial picture to be able to get into the market,” Ms. Leggett said.

“Buying intentions are one thing. Whether they translate into actual purchases, obviously time will tell,” she said. “But, anecdotally, we are hearing that there is heightened activity …and interest in the marketplace overall.”

What's ahead for 2009...

2009-01-07T08:28:00.001-08:00

Happy new year? I think so.

As someone who tends to look at the brighter side of life, I'm not so blindly optomistic that I deny the challenges the year ahead presents.

But I do have some predictions to share and some suggestions for the challenges.

When will the market bottom out?

Of course, this is everyone's biggest question. Here's the funny thing...by the time anyone has the information to call that the market has bottomed out, it's already on the rise, and usually so are interest rates.

Not to mention the crowd behind you that's also been waiting for it to bottom out. We need to stop thinking in these terms and instead look at value.

A big market correction has already happened and for the most part, sellers have adjusted to the current market. I think we may still see a few percentage points down in the coming months but mortgage rates may adjust the opposite way making it a wash in terms of the bottom line.

The value out there right now is great. I've had many buyers get great deals and encourage people to focus on overall value and finding the right home.

Today

Right now we are seeing some great opportunities:

- Mortgage rates are very low - i.e. TD Canada Trust posted variable closed rate of 4.3% and open rate of 4.5%.
- There are still a lot of highly motivated sellers out there who have already bought.
- It costs less to trade up in a down-turning market than a upward moving one.
- Inventory is good, people are adjusting to today's market and are open to negotaition.

Condos

These are good times if you are looking to get into a condo and/or new development. The oversupply and desperate developers are offering all kinds of incentives. Free parking, and evern free cars! But this is one area I would hold off on for a while to let their desperation set in a bit more.

Activity

The core GTA market should stay fairly stable with typical seasonality. I'm predicting some nice activity in the spring with some pent-up demand from buyers who have been holding their breath for the past few months. Personally I have been crazy busy with buyers as have some colleagues of mine so so we're starting to see this.

Motivation

Remember, financials are not the only reason why people buy and sell. Take me for example. I'm a sadistic person who loves to renovate over and over. Or there are clients who can now afford to get into the neighbourhoods they've always wanted to live in.

Relocations will also be up as companies shuffle the deck and our workforce travels for more opportunities. Whatever the reason, people are still motivated to move even in a shifting market.

Getting Creative

A really great way to trade up to a bigger home or to one in a better neighbourhood is to look for one where you can rent out a portion of the home for a while. If you already have enough equity or funds to put your down payment on a higher value home this is a great way to step up and sometimes even reduce your monthly costs.

My wife and I did this many years ago. Our monthly costs were only slightly higher when we made the move from a 2 bedroom, 650 sq. ft. condo north of the Beach to a detached bungalow just steps from Queen St. with a basement rental. It was a great way for us to 'trade up' and get in the area we wanted.

First-Time Buyers

Remember, a big correction has already happened and you can get amazing values combined with unbelievably low interest rates, not to mention good inventory. Don't wait for the herd to drive prices back up again and compete for the home you want.

Current Home Owners

For current home owners, everything is relative. You may sell for less but you'll also buy for less and the cost to move up to that home you've been dreaming of won't cost as much.

Sellers

Be patient and make sure you adjust to the market conditions. I know as well as anyone how frustrating it can be to have your house on the market for as long as it has been taking.

My daughter keeps wondering where all her christmas presents go when we have showings and my wife keeps telling me she is going on a cleaning strike for two months once the house sells.

We'll all get a little better.

The interesting thing about good times is that it's easy to stay in cruise control and still make progress maintaining the status quo.

In the real estate market, it meant that a lot of people jumped into the industry and were able to do a lot of business just by being order takers and sticking 'for sale' signs on your lawn. (Just watch how registrations drop and how many agents actually renew in the summer when fees are due.)

Now is when the good agents shine. Knowing and sharing market knowledge, providing value-add services, being strategic in everything you do, and investing time in life-long relationships. And the good ones will just get better.

This applies to every industry. For the most part, the cream rises to the top and a lot of people will work harder to stay there.

Overall it's an opportunity for clients to get what they deserve and more. And an opportunity for all of us to get better ourselves.

My wife says I'm still not perfect yet so I guess I have some work to do myself :)

Cheers and all the best for 2009,
Mark

Beating the Winter Blahs

2009-01-06T07:09:00.000-08:00

Anyone feeling the winter blahs yet?

After endless shovleing and scraping ice off everything, I know I can't be alone in wondering why I don't live in the Caribbean.

Here are a few quick and easy ideas to do inside and out of the house to lift your spirits.

Flowers
Your home may look like the Grinch came by the time you take down the tree and the decorations. Replace them with fresh flowers - preferably ones that remind you of spring, like tulips.

Hit the Gym
I know, you probably have this on your list anyway...but get the seratonin levels going. Because this blog is rated 'G', I won't get into details, but there are other physical activities you could be doing on a cold winters night for an even better effect...make the most of it!

Hot Yoga
It's true, I've done hot yoga. If you just want to feel the hot air on your skin and actually sweat instead of shiver from your environment, this is the activity for you. Not to mention the toxins from the holidays that you can get rid of at the same time! If you close your eyes and meditate you can actually pretend you are on a beach and someone is about to bring you a margarita any moment.

Get Out of the House
It's easy to take one look outside and turn back. Put your woolies on and get out to a museum, a bowling alley, and indoor driving range or tobogganing. Skating at Harbourfront Center is a blast, and hit the slopes for a great day of skiing or snowboarding. We're Canadian after all.

Tackle a Home Improvement Project
Maybe it's painting a room, or refinishing a lonely piece of furniture. Whatever your list includes, tackle it now.

Sign up for a Class
Is there something you've always wanted to learn? Kickboxing, art, music, cooking...whatever your hidden passion is, sign up for a regular class so you have something to get out to every week and connect with new people.

Help Others
If you're really feeling sorry for yourself, pull up your bootstraps and help someone in need. Nothing will lift your spirits faster. Shelters and food banks are especially in need this time of year. Call and volunteer or start your own campaign to collect food and blankets.

If none of these things work, just think of the excitement that buying a new home will bring :)

Cheers,
Mark

The Best Time of the Year

2008-12-09T08:12:00.001-08:00

Despite the economy, I'm looking forward to the holidays. I hope you are too.

If you're like me, you might be getting a little tired of all the negativity in the media. This month I'm going to cut through that negativity and show you something positive...

The real estate market.

Here's why...

#1 - It costs you LESS to trade up in this market.

For those of you who currently own and are considering a move, you may be getting a lot of advice that you shouldn't trade up now because you'll take too much of a hit in the transaction as your home has dropped too much in value.

Nothing could be further from the truth.

Everything in the market is relative, and it's actually the best time to move up.

Let's compare if you sold and bought six months ago vs. selling and buying today in a market that has dropped approx. 10%.

*May 2008, peak average price over the past two years vs. current stats for November 2008 for the City of Toronto.

Scenario 1 - Peak Market at 10% higher than today.

Sale Price: $543,000 Purchase Price: $760,000

Difference: $217,000

Scenario 2 - Same House, Depressed Market 10% lower than peak.

Sale Price: $488,000, Purchase Price: $683,000

Difference: $195,000

The difference to move to a new home costs you LESS in a downward turning market than in a peak market.

#2 - There is a small window of amazing opportunity in the market shift.

There are a lot of people who bought a few months ago before their home had sold. In the peak market that was a safe strategy. But now you have homeowners who HAVE to sell because they are near or past their close date and are carrying two mortgages.

This situation will not exist in the spring market because people will no longer be purchasing before they sell.

There is a lot of opportunity to get a great deal and negotiate with vendors who have no choice but to sell right now and this window will only exist for a couple of months.

#3 - Mortgage rates are incredible right now.

At the peak of the market in May, the prime rate was hanging around 4.75%. Now, the rate has just dropped to an amazing 3.5%. The posted 5 Year Closed rate for TD Canada Trust is only prime + 0.60%

Let's take a $300,000 mortgage as an example.

At the peak market, with a 25 year amortization, your payment at a rate of 5.35% would be $1,805.07 per month with a total interest cost of $241,484.

At today's market rate, your monthly payment would be $1,594.37 at a rate of 4.1% with a total interest cost of only $178,290.

Your total interest cost would be reduced by 7% over the course of 5-years.

#4 - Homes are now within reach for first-time home buyers.

The cumulative affect of lower home prices and great mortgage rates make this an amazing time for first-time home buyers.

Not to mention the higher inventory and less competition for great homes.

A 10% drop in prices translates to a 10% lower mortgage amount, so a monthly payment would be $159.44 less than in the peak market.

If you are a first-time home buyer, the real estate market is on your side for once. This is the time to make your move.

There are other considerations to think about in this market...

How can I sell my home in this market?

Pricing strategy has never been so critical.

If you are buying another home, you need to stop focusing on the magic number you could have gotten back in May. Those days are gone. Realize that you are making up for it on your buy-side.

First, your home has to be priced at value and that requires a very thorough analysis of recently sold homes and available listings within the past week and days, not just the past months.

In a changing market, historical numbers can mean nothing when pricing a home for sale today. And you have to open to staying ahead of the market activity and adjust as necessary.

Pricing above value because you think you want to leave room for negotiation is not an option. Better to turn down 3 offers than get none at all because no one will even look at an overpriced house in this market.

Other strategies to follow...

If you are considering a move in this market, I'm advising clients to follow these strategies:

1. Sell your home first before you buy, or make your offer conditional on the sale of your home. Unless of course you are fine with two mortgages.

2. Make sure your home shows incredibly well and consider having an inspection done before you put it on the market just as you would in a peak market. Do not give buyers any excuse to put in a low-ball offer or negotiate based on an inspection after their original offer.

3. If possible for both parties, try to stretch out your close date so you have plenty of time to shop for your new home.

4. Be prepared to buy just as you would in a peak market. Get your financing approved BEFORE you look at homes or put in an offer. Be ready to put a certified deposit with your offer. Even though the market has slowed down, there are still other buyers who may be looking for the same home.

5. Play it smart. The reality is that we are in tough economic times. Live within your means and consider your complete financial picture when you invest in real estate. At the end of the day, it's a solid investment that for most of us means a roof over our heads, not a statement in the mail.

The Irony

Think of the phenomenon of 'herd mentality'. We are really causing our own grief in some ways here.

Ironically, when prices are at their highest and there is the most competition for a home, people can't wait to buy and will throw thousands of dollars over the asking price just to get a home.

Now, when the market is in the favour of buyers and there is tremendous value and selection out there AND it actually costs less to trade up for current homeowners, everyone is holding their breath.

Another irony is that a lot of buyers are waiting for the market to bottom out. But no one has a crystal ball and we can't predict when that will be.

By the time it's announced that the market has bottomed out, it's already on it's way up again and all the pent up buyers who were holding off for a better deal are now in competition with each other, driving prices up.

In Summary...

I am personally excited about this market.

My clients get the opportunity to:

- Move to a better home for less

- Get amazing deals given the unique conditions of the current shift

- Take advantage of incredible financing rates

- Realize their goal of home ownership if they are first-time home buyers

I hope you forward this on to as many people as you can, if for no other reason than my determination to dispell the myths and negativity in the media that's causing a lot of people to miss out.

To find out what opportunities are in the real estate market for you, and to find out about some amazing deals, contact me today.

And if anyone tells you this is a bad time in the real estate market, tell them to call me directly :)

Best wishes for the holiday season!

Cheers,

Mark

416.728.2499 - info@markrichards.ca

Ideas for the Gift Challenged

2008-12-08T15:50:00.001-08:00

For those of you who may need a bit of inspiration and ideas for the holiday gift giving season, we've put together a list that may just work for you.

Framed Pictures

We rarely do this for ourselves, so how great is it when someone gives you a blown-up framed photo of you, your friends or family?

It seems like it takes some time but one evening picking out favorites, a quick online print order and in-store pick up to grab some frames and you're done.

Cost? $10-30 for a frame, $0.23 - $15 for printing depending on size. Ikea has great frames with mats included starting at $6.99 for a 4x6 size.

In-Name Donations

Considering how many people in the world are less fortunate than us, sometimes the big ticket items don't sit quite right. There are some great ways to make a donation in someone's name - from donating dollars, to choosing specific items to donate.

You can donate a mosquito net through the Red Cross for just $7 and save a child from malaria.

The Red Cross - Malaria Bites

Or you can check out Canada Helps - it enables online donations for 83,000 Canadian charities. It allows you to search by interest, city and name to find the one that fits the people on your list.

Canada Helps

Shows

In a city like Toronto, there are so many great shows, concerts and events that the choices are endless.

Don't forget that many afternoon shows can be less than half the cost and it's great to have dinner afterwards instead of before and rushing to an evening show.

We saw We Will Rock You with the in-laws this past summer and we all had a blast. For a family show, you can see Chitty Chitty Bang Bang or The Sound of Music. Tickets for both shows can be purchased online at Mirvish Productions and you can get deals from just $24 a ticket.

Books & Magazines

Who isn't looking for a good page-turner? The best thing of all is they can exchange your choice if they've already read it or if it isn't their cup of tea.

Magazine subscriptions are also a great gift with big impact for not much money. Deals can be had for just $12 a year. Rogers offers it's customers a $1 per month subscription for most of it's magazines - check out Rogers Magazines.

For book ideas check out the following reviews:

New York Times 10 Best Books of 2008

Chapters Top Online Bestsellers

Create a Book

If you have a bunch of photos from a vacation or party, or just a lot of photos in general you can create a professional looking book with Blurb. You can get it produced and delivered by Christmas (choose your delivery options carefully!) and books start at just $12.95!

For Those Who Help You

For the postman, the dog walker, the babysitter etc...keep a stack of Starbucks or Tim Hortons gift cards on hand! Who doesn't want to be warmed up with an eggnog latte or a double-double?

Regardless of what you are giving, make a list, check it twice and set aside some time to shop to save yourself from the stress of the holiday season.

Cheers & Happy Holidays!
Mark

Slash Thousands Off Your Mortgage

2008-08-13T09:31:00.000-07:00

This month, I’m sharing highlights from a recent article in Canadian Real Estate Magazine. With concerns about the economy, make the most of your investment and get ahead. Don’t take your mortgage for granted by using the following tips…

Skip the Honeymoon

Be careful of introductory offers such as low rates that reset to higher ones after a few years and cash-back offers and incentives that come with a higher interest rate. Short term gain for long term pain!

Time is Money

The best strategy for paying less interest is paying your loan as fast as you can. Most mortgages allow you to pay a lump sum of up to 25% of the original mortgage each year.

Also at each renewal the mortgage becomes an open loan, which means you can repay as much as you want without restrictions or penalties.

More Frequent Payments

In case you don’t win the lottery or find yourself with a large lump sum to put down on your mortgage, just make your payments weekly. It’s a small cash flow difference but it will save thousands on your mortgage.

With a $300,000 mortgage at 5% over 25 years, you can be mortgage-free four and half years faster and save $37,947 by simply making your payments on a weekly basis versus on a monthly basis.

Hit the Principal Early

Most mortgages allow you to pay an amount up to or equal to your regular payments that can go straight to the principal.

Switch Lenders

Shop around at renewal time but consider costs before you switch, such as appraisal fees ($150-$350), discharge statement fee ($150-$300), and legal fees ($600-$1,500).

It is well worth the effort to shop around. Half a point on a $300,000 mortgage can mean over $18,000 in interest savings.

Forgo Minor Luxuries

Consider this: A typical day of food purchases adds up: coffee and snack ($5), lunch ($12), drinks after work ($8) = $35 a day.

If you ‘bagged’ lunch and made coffee at home, assuming a savings of $20 a day x 20 days a month, you would have an extra $500 a month to put towards your mortgage.

Assuming a mortgage of $300,000 at 5% you could save $68,777 in interest and be mortgage free 9 years sooner!

In Summary

Don't take your one of your biggest investments for granted. Take a look at your mortgage today and get the most savings possible!

For more information on how you can save money on your mortgage, contact me at info@markrichards.ca or give me a call at 416.690.2181.

Market Watch - Summer Slump or the New Reality?

2008-08-13T09:23:00.000-07:00

Although we always expect a summer slow down, many people are trying to figure out how much of it is actually the market correcting itself.

The Globe and Mail had a great market report last Friday that I'd like to share with you for some perspective...

By CAROLYN IRELAND - From Friday's Globe and Mail

August 8, 2008 at 12:00 AM EDT

Bosley Real Estate Ltd. agent Michael O'Brien is seeing houses sit on the market for two or three weeks these days. In 2007, very few houses lasted a week.

"Mind you, last year was probably a once-in-40-years kind of market," he says.

The number crunchers bear that out: Toronto's lethargic spring real estate market settled into a true summer slump in July as sales fell 12 per cent in the Greater Toronto Area.

The number of houses and condominiums that changed hands in the resale market dropped to 7,806 last month, compared with the 8,912 transactions recorded in the same month last year, according to figures released this week by the Toronto Real Estate Board.

Prices, meanwhile, remained stable. Throughout the GTA, the average price came in at $371,427 to mark an improvement of slightly more than 1 per cent from the average price of $366,012 realized in July, 2007.

In the city of Toronto, the average price was tallied at $395,342 in July to stay virtually flat, with the average price of $395,044 recorded in July, 2007.

TREB president Maureen O'Neill points out that July, 2007, was the best July ever recorded, when sales jumped an eye-popping 26 per cent over the year-earlier tally.

For the year-to-date, sales in the GTA have declined 14 per cent from the figure this time last year.

Mr. O'Brien says Toronto's real estate market is still healthy — especially compared with cities south of the border.

"Most of North America would kill to have our real estate market."

The agent, who does a lot of his business in downtown neighbourhoods such as Cabbagetown and Leslieville, says listings are reasonably plentiful, but there's no big flood of houses onto the market.

Some clients are holding off listing until the fall, the agent says, but he is advising people who want to sell to put their houses on the market because no one can predict how the fall market will shape up.

The federal government has announced reforms aimed at avoiding a U.S.-style housing price bubble. Starting Oct. 15, the Finance Department will stop guaranteeing 40-year mortgages and mortgage loans with no down payment.

Mr. O'Brien says the new rules are bound to take some potential buyers out of the market — particularly at the lower end.

At the other end of the price spectrum, he says houses listed at $2-million and above are sitting on the market longer because luxury properties are purely a discretionary purchase.

"The high end is pretty darned slow," he says. "Whenever there is a bit of economic uncertainty, the high end slows first."

Mr. O'Brien says that setting the right asking price for a property is crucial this year because many houses are not attracting multiple offers.

Last year, agents were often trying to create competition for houses by setting low asking prices and then holding offers on a specific day. About 95 per cent of them were sold on the offer night at a price far above asking, he says.

"We could underprice it considerably and the market would correct it."

This year that strategy is risky, Mr. O'Brien says. He advises sellers to list at a price they would be willing to accept or use as a starting point for negotiations with a prospective buyer.

Geon Van der Wyst, an agent with Royal LePage Real Estate Services Ltd., says buyers are cautious because they see the poor economic environment in the United States and wonder how much of the bad news will spill over into Canada.

"I like to counteract that when buyers have that mentality by saying that I still think the Canadian market is very healthy."

Mr. Van der Wyst points out that price gains in Toronto have been pretty steady over the past seven years, compared with the sudden spikes recorded in Vancouver and Calgary. Toronto's more moderate pace of growth means the market is not as susceptible to a sudden plunge, he believes.

Houses in the central core of Toronto are being bought quite quickly when sellers are not unrealistic in their asking price, Mr. Van der Wyst adds.

"I think some people are just a little bit more greedy than they should realistically be."

Across the GTA, the average price on the market has increased to 33 days from 31 days a year ago, TREB reports. Earlier this week, there were 26,543 active listings, which is a 28-per-cent increase from a year ago.

To build or not to build...is it even your decision?

2008-06-24T11:07:00.000-07:00

It’s not necessarily your decision!

As a recent participant in a Committee of Adjustment hearing, I was reminded of how important it is to take your short and long term needs into consideration when buying a home.

I witnessed a family being declined approval to put on a small addition with several neighbours in opposition. The hearing made pretty good material for reality television, and I don’t imagine they’ll be having any street parties soon.

There were many other home owners who didn't have opponents yet they were still were declined because their plans imposed one kind of variance or another.

Here are some things to consider to save you time, money and heartbreak…

1. Find out if you need to go to the Committee of Adjustments.

Before you buy...

While no one can guarantee the outcome, a good architect can tell you if your wish list will require Committee of Adjustment approval or if it falls within standard building permits. Beware of the contractor who says 'no problem'.

When looking for an architect or designer, find someone with experience in committee applications who has fought and won for their designs. Many come up with incredible ideas that may never have a chance of being approved.

When planning...
When you submit your plans for a building permit, they will advise if you need to do a Preliminary Project Review, the step prior to a Committee application.

2. Talk to your neighbours.

Sneaking past them won’t work…they will get a letter detailing your plans and an open invitation to voice their opposition at a hearing! The most effective thing to do is to write up a petition in support of your plans with signatures and addresses.

If you find neighbours who oppose your plans, be as open as possible - show them your plans, find out what their exact concerns are and get creative as to how you can resolve them. For example, if you are extending a structure that will affect their view, you might consider offering to do some landscaping to make it a pleasant change rather just a brick wall in their face.

3. Prepare

One thing I learned is that although the board is very understanding of people who are nervous, they have little tolerance for those who are unprepared.

If your plans are complex, it may be best to have your designer or architect represent you in the hearing. Especially if you'll have to defend your plans against opponents.

If they are relatively simple, make sure you understand what variances you are affecting and the history of your street. For example, a homeowner who wants to put an addition on the back will have a stronger case if they can list the addrress of neighbours who have already done so.

4. Don't do anything ugly :)

Common sense prevails here. If you are proposing a castle-style stone monolith with 5-car parking in a sea of board and batten homes then chances are, your neighbours are not going to be all that supportive. Consider what your neighbours on all sides are going to be looking at. Your view might be great but if they are suddenly looking at a 2-storey wall instead of trees you might want to revise your design.

5. Go Metric

We learned this the hard way. After finally getting every single element of our plans together, and several trips to city hall later, we proudly put forward our application to the committee only to be told that they had just hired a new manager who decided to enforce the requirement to have all measurements in metric.

A few swear words later, I called our designer right then and there and he did not believe me. They just started enforcing it the day before we submitted our application after decades of accepting imperial. Back to the drawing board.

In Summary

Try to come up with plans that do not trigger a trip to the Committee of Adjustments, for if your intentions cause major variances to by-laws and building regulations, you'll be spending a lot of time and money for no reason.

If your plans do take you there, make sure you give yourself at least four to five months prior to when you want to start construction!

For more information, check out www.toronto.ca/building/building_permits.htm

Regards,
Mark

Bust or Balance?

2008-05-14T15:07:00.001-07:00

The most common question I get asked these days is "Will the real estate market crash soon?".

Without a doubt the U.S. is sparking a lot of these concerns. Some reports from the financial industry and recent stock market performance are also fuelling the speculation.

I am not going to be overly optimistic but I also don't agree with the 'prophets of doom'. I hope to give you a balanced view based on the facts...

Canadian Business magazine recently published an article by Andy Holloway that offered some great insight. Consider the following...

"Unemployment is near its lowest levels ever, the dollar is near par with the greenback, and our resource-rich economy is doing well by most measures."

He shares feedback that negative indicators such as an abundance of properties on the market and the length of time they are on the market have not really started to increase. It is softening but we need to remember that the market has been in serious overdrive for a while now.

Nesbitt Burns just released a report that states:

"So far this year, national home sales are down 11% year after year, and prices are up a moderate 4.8%. The sales drop and the modest price gain are well down from years of double-digit increases, and further confirmation that the boom days are over. Notably, no city in the country has reported a price decline from year-ago levels over the first four months of the year, so the slowdown is still far from mimicking the U.S. experience.

However, we would point out that new listings have climbed more than 8% this year, even as sales have slid, pointing to “a more balanced market” according to CREA (i.e. much more of a buyer’s market), and even less upward pressure on prices looking ahead."

In comparison to the U.S...

Of course, driving a lot of the paranoia is the state of the market and economy in the U.S. With media reports of major price crashes and a glut of property supply it feels like every market is going to follow suit.

Canadian Business shares some important differences and actual facts to consider...

- More than 25% of all new U.S. mortgages were sub-prime in 2006, compared with 3% in Canada, and all high-ratio mortgages here (those with less than 20% down) are secured by the CMHC or other insurers.

- The U.S. mortgage delinquency rate was 5.8% at the end of last year, compared with only 0.26% in Canada. The States is the breeding ground of the “ninja loan” — No Income, No Job and no Assets.

They say that’s not to suggest the threat of a housing downturn in Canada isn’t real, but it’s unlikely to reach the epic proportions it has in the States.

What's been happening in the Canadian Market?

Holloway discusses some interesting market activity...

"Prices are still rising in most major Canadian markets, even if the number of sales is dropping. Housing sales in the Top 25 markets fell 5.6% to 38,365 units in February, according to the Canadian Real Estate Association.

Nationally, the average sale price rose 6.2% to $313,065, the smallest year-over-year increase since November 2004. Is that the sound of a bubble bursting? More likely it’s a long hiss, as the market loses some of its buoyancy. “It’s still a seller’s market.

Price increases should be higher than inflation,” says Warren. “But 2009 will be more of a balanced market — the first time we’ve had one since 1998.”

Focus on the market in the GTA...

Check out the latest market report from the Toronto Real Estate Board:

GTA resale housing market moderate in April, but prices up.

With 8,762 houses sold in the Greater Toronto Area, April’s resale housing activity was down seven per cent from the record 9,452 transactions from the same timeframe a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.

“The market is showing signs for a healthy 2008 compared to the diminished activity we saw in the first quarter of the year,” said Ms. O’Neill. “We continue to experience a supply and demand situation and to-date, it remains a sellers market."

Sales activity however, was markedly different in the 416 and 905 regions. With 3,467 transactions in the City of Toronto, sales were down 10 per cent from a year ago. The 905 region was down five per cent from April 2007 sales, with 5,295 homes changing hands.

April’s GTA average price was $398,687, up five per cent from the same period a year ago. In the City of Toronto, the average price was $446,781, up six per cent from last April. In the 905 region the average price increased five per cent compared to a year ago, to $367,196.

"The number of listings on the Toronto Real Estate Board’s Multiple Listing Service has increased to 24,539, up seven per cent from a year ago, which is good for homebuyers, who will find a greater range of options in the market,” said Ms. O’Neill. “With prices continuing to appreciate and increased listing inventory there are favourable factors in today’s market for consumers.”

For the full April Market Watch Report, click here.

At the end of the day...

Like most investments, a downturn in the market is the biggest issue when you have to get out. If you are planning on selling in the next year, the sooner the better is my call but you'll still hold on to solid value in the coming years.

If you are considering buying, and are not planning to flip or resell in the short term I would not feel concerned about major drops in value. And it is starting to become a more balanced market which will make the buying process more appetizing compared to the past scenarios of crazy bidding wars.

For those home owners who plan on sticking around, resist the temptation to max out the lending potential against your home.

Holloway points out that Canadians are pretty averse to debt, "Nearly four of every five Canadian homeowners say they want to pay off their mortgages as fast as possible, according to Canada Mortgage and Housing Corp. Almost 85% make weekly or biweekly payments to speed up amortizations, while a third have made a lump-sum payment against principal. "

For 2008 I would look forward to a more balanced market and greater supply of properties, which I believe is a good thing.

It's a healthy correction after the insanity of the past few years.

Regards,
Mark

For the full article "Safe as Houses?" by Andy Holloway, click here.

Dream Homes Vary by Generation

2008-03-21T10:14:00.001-07:00

When you were born says a lot about your idea of the perfect house.

This month we're featuring an article from MSN real estate that reviews the features that appeal most to boomers, Gen X and Gen Y, plus tips on how to sell to homebuyers in each generation.

What's your dream house?

Your answer says a lot about your values and attitudes -- and may have a lot to do with when you were born. So say the authors of a new study of 1,000 home owners nationwide.

The market research company GfK Roper Reports asked participants to prioritize the amenities they'd have in their dream home -- not necessarily amenities they already have, or will have in their next home.

The different responses, from baby boomers through first-time generation-Y buyers, reflect how different features appeal to different ages and also how tastes have shifted over time.

"I think what the study reveals is very different value sets among the generations," says Kathy Sheehan, senior vice president for GfK Roper Reports.

Definite patterns emerge from the survey data, Sheehan says, and you can glean some potentially important insights -- especially if you're considering pre-sale renovations. But first, here's a review of the survey results:

Boomers - The Picture of Success

Those born 1946 to 1964, rank a state-of-the-art kitchen No. 1 on their list of must-haves, with walk-in closets, whirlpool baths, fireplaces and swimming pools rounding out the top five. They also rank a workshop/hobby studio highly. (You can see a full list of each generation's top 10 below.)

As they're becoming so-called "empty nesters," boomers think about having a private retreat that's as much gallery as home. They waited until later in life to have a grand home, and now they generally want to flaunt its many niceties -- a home where they can age (extremely) gracefully.

"It's about the show," she says, with amenities such as a grand kitchen and places to display art. In a nutshell, the boomer home says, "I've made it."

Generation X - Family-focused Informality

Those born roughly between 1965 and 1978 also place a high priority on a fine kitchen and on amenities like large walk-in closets. As these sons and daughters of baby boomers age, their aspirations for dream houses are now dovetailing with those of their parents, says Sheehan.

The reason? This generation has moved into child-rearing age, says Sheehan, and now "want stuff that speaks to organization." Their buzzword: family.

"Gen X-ers are at childbearing age," Sheehan says. "That means that Gen-X homes are about the family center. They are looking for things that help them organize and eradicate clutter and chaos."

But Gen X-ers are notably different from boomers, too, says Sheehan. For one thing, "Gen X-ers have different attitudes about family and disciplining their children."

Those different attitudes show themselves not only in how these former slackers prioritize their dream amenities, but also in how little they like the formality of boomer homes; they want a casual home, says Sheehan.

They're also much more in tune to style and design, and know exactly what they want in a home -- and are less inclined to settle for less, she says.

Generation Y - Let the good times roll

Those born after 1978 to about 1995, want a home that hollers "entertain me." Top-10 priorities include a whirlpool bath, sauna/steam room and entertainment center. "All of these things are about fun," says Sheehan.

That might explain why gardens and workshops don't make an appearance on the Gen-Y list.

And they're clearly not yet worried about accommodating children. This generation is emerging socially, and wants amenities that enhance that aspect of its life. So instead of a place to hunker down, Gen-Y homeowners "might be more interested in the home as a social hub," says Sheehan.

Technology is also second-nature to this generation. They're completely wired. So a Gen-Y home, more than any other, will practically hum with electronics.

Top dream-home amenities vary in importance by generation:

Baby Boomes (born 1946-1964)

1. State of the art kitchen
2. Large walk-in closets
3. Whirlpool bath
4. Fireplace
5. Swimming Pool
6. Workshop/hobby studio
7. Patios, porches and decks
8. Garden
9. Game/billiard room
10. High-tech entertainment cener

Generation X (born 1965-1977)

1. State of the art kitchen
2. Larke walk-in closets
3. Fireplace
4. Whirlpool bath
5. Swimming pool
6. Patios, porches, decks
7. Game/billiard room
8. Garden
9. Gym/fitness room
10. Workshop/hobby studio

Generation Y (born 1978-1995)

1. Whirlpool bath
2. Swimming Pool
3. Game/billiard room
4. Large walk-in closets
5. Fireplace
6. State of the art kitchen
7. Sauna/steam room
8. Gym/fitness room
9. High tech entertainment center
10. Patios, porches and decks

Source: GfK ROPER

Some common ground

So, how immutable are these traits, anyway? Observers say attitudes about homes do change as people enter different stages of their lives: Witness the Gen X-ers who want high-end kitchens now that they're nesting, just like their boomer parents before them.

But the study turned up somewhat unexpected results, too. For Gen X-ers, "It's a little more surprising that their values seem to be staying with them as they age," says Sheehan, mentioning attitudes such as informality.

"There might be life-stage changes, but the values will remain consistent." Another is the Gen Y embrace of technology. That shouldn't be expected to dissipate, either, she says.

Perhaps most interesting to home owners renovating with an eye toward selling their home are the features the generations agreed were important. Walk-in closets made an appearance in the top three on all three generation's lists, for example.

And those state-of-the art kitchens ranked No. 1 for both boomers and Gen X-ers -- and made a not-so-shabby appearance at No. 6 for the Gen-Y set. Other features cracking the top five for all three generations:

• Whirlpool baths
• Swimming pools
• Fireplaces

Target buyers -- carefully

You can harness all this info to make your home more attractive to homebuyers. But do proceed with caution: Just because you live in a neighborhood that's hot with the Gen-Y crowd doesn't mean you should run out and install a Jacuzzi, say real estate agents; a hot tub is a bad return on investment now and forever. Pools aren't much better.

Do not to make dramatic changes in your home just in hopes of attracting buyers. "What's most important is having a nice, clean property in an in-demand area," Hehman says.

Yet there are some situations in which you might consider targeting your home renovations -- say, if you live in one of those increasingly popular 55-and-over communities, or in an area that's getting hot with young professionals.

To gauge the type of buyer you're likely to attract, pay attention to your surroundings: Are you in a high-dollar district? Chances are good you'll have a boomer buyer. Gen-Y buyers, meanwhile, often want to be closer to the social scene and public transportation -- or else out on the fringes where new homes are cheapest.

You should know basic facts about your neighborhood, such as whether you're in a good school district and the general ages of people who've recently bought in the area.

For those of you comfortable with targeting specific buyers, here are some expert tips for luring boomers, Gen X-ers and the Gen-Y crowd (that fall well short of installing a Jacuzzi).

Luring Gen Y

Don't fear color.

The age-old rule is to banish any hue from a house about to be sold. But plain-Jane white is often too drab for Gen Y. Some clients see plain white walls and they say, 'Man, that just sucks, because now we’ve got to come in and paint.'"

Instead home owners should repaint in what the industry calls "builder's beige." "It adds a lot to the house; it's better than just solid white," he says, and "they can live with the beige for a while."

Get unconventional.

This generation likes untraditional floor plans, informality and flexibility in a layout. Anything that a homeowner can do to emphasize that -- adding furniture that moves around on rollers, putting the formal dining set in a shed out back when the house is being shown -- may add appeal.

Also, get creative with what personal property you're willing to include in the listing price. Instead of the typical washer and dryer, some buyers have negotiated for the previous owner's elaborate, built-in home theater system to be included in a full-price offer.

Get wired.

Gen Y is plugged in to the Web, all the time. Your home better be, too -- and with a fast connection, even if it's an older home.

Add an office.

Transform someplace in the home (even a nook) into an office -- even if it's just a few shelves and a desktop. Everyone works from home these days. Show a Gen-Y homebuyer where he or she can, too.

Grabbing the Gen-X buyer

Think kitchen.

Because the kitchen is the focal point of the Gen-X home, you should spend your remodeling money there before, say, the bedrooms, advises GfK Roper Reports' Sheehan.

One way to freshen up a kitchen without spending thousands is to refinish the cabinets. Popular treatments are glazing, crackling and sand-through finishing that gives furniture a worn appearance. It's minimal cost but gives that home an updated look. Just look at a catalog like Pottery Barn for evidence of its popularity.

Color (again).

Gen X-ers like a lot of color, a little bit of bling, a little bit of pizzazz. That doesn't mean you should paint your bedroom purple, but do something intriguing that will make a room memorable for a younger visitor.

Hooking the Boomer Buyer

Think about art.

Since boomers often have fine items and this generation is often big on display, ask yourself where and how you can create a space -- perhaps in the living room or entrance -- where a future homeowner could show a piece of artwork.

Update with care.

Boomers do love grand kitchens and bathrooms. But "it's very tricky -- how are you going to pick out the right tile?" asks Hehman. So proceed with caution if you must update those areas in anticipation of selling your home, he says. Make somewhat neutral choices among luxury items -- white Carrera marble in the bathroom, for example.

Consider universal access.

As you renovate your bathroom, add touches that seniors will notice and need when they look at the house later -- grab bars in the bathtub, a higher toilet, a step-in shower rather than a bathtub.

More ideas.

Lever door handles (easier for arthritic hands to handle than knobs) when you replace door fixtures, and pull-out shelves in places like the pantry (easier for bad backs to reach).

February 2008 Market Watch

2008-03-20T11:46:00.001-07:00

Sales Break 6,000 In Spite Of Winter Weather

While snow fell in almost record amounts, Toronto Real Estate Board Members recorded a respectable 6,015 sales during the month of February, TREB President Maureen O'Neill announced today.

"While sales were down over 2007 (11 per cent), they are in line with historical levels for the month, and they should increase substantially as the GTA eases into Spring."

Prices rose in February, with the average climbing to $382,048, up four per cent from the $367,687 recorded in February of last year. Days-on-Market stood at 30 days, and the list-to-sale price ratio was 99 per cent.

Activity within the City of Toronto generally matched that of the broader GTA. Sales moderated 14 per cent in the city to 2,310 from last year's figure of 2,697. Prices rose two per cent to $424,235.

Neighbourhood Watch - February 2008
Based on homes sales that month.

E02 -The Beach (coxwell, danforth, victoria park)
Detached: $796,242
Semi-detached: $452,079
Condo: $720,00*
* don't worry folks, only on condo sale in February in this district and it was a big one!

E03 - Danforth North (DVP, victoria park, danforth)
Detached: $505,304
Semi-Detached: $437,837
Condo: $216,300

E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $488,738
Semi-Detached: $479,731
Condo: n/a

C01 - Downtown West (yonge to dufferin, south of bloor)
Detached: $670,800
Semi-Detached: $657,667
Condo: $346,396

C08 - Downtown East (yonge to DVP, south of bloor)
Detached: $555.450
Semi-Detached: $652,204
Condo: $343,648

C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $1,014,708
Semi-Detached: $625,100
Condo: $341,867

C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $2,031,475
Semi-Detached: $1,787,000
Condo: $537,578

C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,124,963
Semi-Detached: $363,443
Condo: $467,300

C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,649,255
Semi-Detached: n/a
Condo: $474,143

Source: Toronto Real Estate Board February 2008

We're Proud to Announce...

2008-02-29T13:10:00.000-08:00

We’re proud to announce a partnership with Habitat for Humanity Toronto.

Our goal is to raise awareness and support them in their efforts to eliminate poverty housing in our community.

One of the great ways to support Habitat for Humanity is through their ReStores…donate or shop!

Habitat for Humanity Toronto’s ReStores sell new and gently used renovation materials and supplies. Everything sold in the ReStores has been donated which is how they are able to sell everything for at least 50% off retail, or more.

They constantly receive new inventory so every visit to the ReStore you can find an amazing deal or a one-of-a-kind gem.

We are doing our own renovation and were able to find a new designer chandelier for 60% less than retail!

If you are conquering a renovation yourself, find out how you can donate your home’s materials instead of paying for costly disposal fees. Not to mention receive a tax receipt.

Habitat ReStore profits pay for 100% of the administrative costs of operating Habitat for Humanity Toronto. By covering their own costs, they are able to direct every dollar donated to home building.

You can check out the local ReStore at 29 Bermondsey Road or go to www.torontohabitat.ca for more locations.

Did you know?

The Toronto Star just named our city “Canada’s poverty capital.” Thirty percent of families in the GTA live below the poverty line.