Home Improvement
Toronto Housing Outlook, November 2008
President’s Sun Column: Outlook still good for GTA
November 7, 2008 — The Greater Toronto Area resale housing market has moderated in recent months, leaving many homeowners wondering about the future of real estate in our city.
In response, the Toronto Real Estate Board recently invited senior executives from eight of Canada’s largest real estate companies to share their views on what’s next. The panelists, who represent such well known brands as Century 21, Coldwell Banker, Prudential, Right at Home, Royal LePage, Living Realty, RE/MAX and HomeLife, all agree that the future is bright for the GTA housing market.
Full Details.
Today’s Housing Market Offers Unique Opportunities for Home Buyers
The news is filled with headlines about the state of today’s housing market south of the border-”Foreclosure sales are up.” “Real estate prices are down.” “Borrowers are defaulting on sub-prime loans.” It’s easy to be confused and uncertain about whether now is a good time to buy a home.
Although the Canadian market is not as robust as it was a year ago, housing prices have been stable for several months, mortgage rates have dropped this year and there is overwhelming choice of homes currently available in all price ranges. All these factors add up to an ideal market place for first time or move up home buyers.
The turbulence we’re seeing in the housing market is not all problematic. For some, it has opened up new opportunities. If you have good credit and your finances are solid, you may be able to benefit from today’s housing market.
As a first-time home buyer the current market offers you many advantages, such as:
1. Lower interest rates
Today’s long-term fixed mortgage rates are relatively low. The Bank of Canada had dropped the key interest rate a couple of times in the last few months. Today’s historically low interest rates mean you’ll benefit from increased buying power if you’re shopping for a home.
2. More negotiating power
In the hot real estate market of a few years ago prospective home buyers often found themselves in a bidding war when making an offer on a home. Today’s cooler market means buyers have more bargaining power. More sellers are now willing sell at less than list price or offer other incentives.
3. Wider selection of properties
Today’s larger inventory of homes for sale means more properties to choose from. It also means home buyers can afford to be more discriminating and take the time to find a home with all of the features that they are looking for.
4. Sales incentives
Many new home builders are beginning to offer incentives to lure buyers. In some cases, they’re offering price discounts or complimentary extras such as granite kitchen countertops or upscale appliances. Some private home sellers are also throwing in a variety of incentives such as paid closing costs or free home inspections.
Historically, the housing market has been cyclical. Every period of sustained price increases has been followed by a period of declining values. It’s therefore not surprising that after the boom of the last few years, we’re currently experiencing a housing market correction. In most parts of the country, the days of being able to profit from buying and selling a property quickly may be over, at least for a while. But owning a home and building equity in real estate is likely to remain a sound long-term investment.
The fundamentals of the Canadian economy and today’s buyers market suggest that now is an excellent time for prospective buyers to explore opportunities to buy a new home. Consult with your agent, do some research, and buy, buy, buy!
Greater Toronto Area Resale Housing Moderate in September
September 17, 2008 — The Greater Toronto Area’s autumn resale housing market began with moderate activity, Toronto Real Estate Board President Maureen O’Neill announced today.
With 2,726 sales during the first half of this month, activity has declined 16 per cent from the 3,236 recorded during same time period a year ago. Compared to the 2,913 transactions recorded during the first half of September 2006, activity has declined six per cent.
In the City of Toronto, 998 sales were recorded, which represents a 23 per cent decline from the 1,297 transactions recorded in the first half of September 2007 and an 11 per cent decline from the 1,118 homes that changed hands in 2006. However, activity increased 16 per cent in the first half of September 2007 from the same period in 2006.
In the 905 Region, there were 1,728 sales, down 11 per cent from the first half of September 2007, when 1,939 transactions were recorded and within four per cent of the 1,795 sales recorded during the same timeframe in 2006. However, activity increased eight per cent during the first two weeks of September 2007 as compared to 2006.
“Although housing activity in the GTA remains moderate, we’re continuing to see a consistent pattern, and this stability is certainly positive news compared to markets in other sectors and in other world cities,” said Ms. O’Neill.
At $366,158 the average price of housing in the GTA has increased marginally from the $364,364 recorded a year ago and is up nine per cent from $335,208 recorded in September 2006.
In the City of Toronto, the average price is $386,524 up marginally from the $384,796 recorded in the first half of September 2007 and up 12 per cent from the $343,561 average from the same period in 2006.
In the 905 Region, the average price is $354,395; an increase of one per cent from $350,698 recorded a year ago and up seven per cent from $330,005 recorded in the first half of September 2006.
“The fact that prices have held firm despite moderate activity shows that consumers regard real estate as a sound investment,” said Ms. O’Neill.
The percentage of asking price that Sellers receive for their homes has also remained consistent. The list to sale price ratio is 98 per cent, as it was a year ago.
The 26,299 properties listed for sale on the TorontoMLS system have increased 26 per cent from a year ago when 20,841 homes were available. The time that homes remain on the market has increased as well, to an average of 37 days compared to 31 days a year ago.
In a few areas though, activity heated up during the first two weeks of the month.
Transactions in Bowmanville (E17) increased 66 per cent from a year ago, as a result of strong detached home sales.
In Streetsville (W20) activity increased seven per cent compared to mid-September 2007 due mainly to semi-detached sales.
Vaughan (N02) saw a 20 per cent increased in transactions from a year ago due to strong sales of all housing types.
Radiant Heating Energy Savings – Article
An interesting new product that saves you money on your Energy bill – Thanks Nigel Denham!
Who’s Job Is It?
“Who’s Job is It?” is a PDF document that is an excellent reference for any property owner. It illustrates just who to contact for a variety home inquiries around your home.
Renovation Cost Estimate Sheet
Check out this pdf of all your typical home renovations for insight on the average costs;
