As a Toronto Real Estate Agent, I always recommend a quality Home Inspection when purchasing a home. Here is an article that shows a few ways you can help to ensure the inspection is effective.
Home inspections are a good way to save money down the road.
I continue to receive complaints from readers about problems that they discover after closing their home purchase. Most complain about sellers who fail to disclose defects or home inspectors who fail to find them. The system is far from perfect. However, there are steps that buyers can take before and during a home inspection to protect their interests.
Check all electrical outlets to make sure that they work.
Open windows, even in the winter, to make sure they are not stuck or painted shut.
Look under any area rug or bed and behind any picture to check for cracked tiles, stained carpets or walls. Lift anything on the kitchen counters to look for defects.
Do any of the appliances show any rust? How old are they? If they are discontinued models, you will likely have to replace them if they break down because of the difficulty of finding replacement parts.
Start the dishwasher at the beginning of any home inspection. By the end, it should have gone through its entire cycle, without leaking.
Put a thermometer inside the oven and turn it on to 350 degrees. After 10 minutes, check the temperature. Test stove burners.
Put a cup of water in the microwave for 45 seconds. Does it heat up?
Flush every toilet and see whether it stops running after it is filled.
Check sinks, tubs and showers in the house. Is there proper water flow from each faucet and does everything drain properly?
You may want to consider turning all the faucets on at the same time and then flushing a toilet upstairs to see whether the water pressure slows or stops in any sink. This could indicate a problem with the system.
In older homes, consider a separate sewage inspection. Stan Collini, the President of Roto-Rooter Plumbing and Drain Service in the GTA, tells me that for $295, you can do a video camera of a property’s sewer system to see if there are any problems that would not be visible on a typical home inspection.
Check under the water heater for leaks or stains on the floor.
Ask how old the air conditioning unit is and when was it last serviced Is there sufficient hot or cold air reaching all of the rooms in the house?
Does the owner have a plan with their gas company to inspect the furnace once a year? When was the last inspection conducted?
If the house has an addition, ask whether any upgrade was done to the heating or cooling systems to account for the additional living area.
Look for water stains in the ceiling which could indicate leaking from the roof or other problems with the plumbing system.
When your inspector is on the roof, ask them to check for broken or cracked shingles. If it is a flat roof, look for the low spots where water can collect for any evidence of a problem. Check the eaves to see if there is any rot or decay. If any concerns are noted, consider bringing in a roofing contractor for an additional opinion, especially if the home is 15-20 years old and it is still the original roof.
You may also want to consider a separate inspection for mould or termites, as these may not be visible on a home inspection but can result in significant costs to repair later. Check if this is a known problem in the area.
Always ask the seller and the seller’s agent if they know about any hidden defects that are not visible. They must answer truthfully if you ask them.
Consider looking into after-sale warranty protection. Many of these products on the market will generally cover problems with a home electrical, plumbing, heating and cooling system, as well as the major appliances. But like any warranty, ask about deductibles and what is excluded from coverage.
By being properly prepared and asking the right questions both before and during any home inspection, you will be better protected against costly surprises after closing.
By Mark Weisleder | Fri Sep 9 2011
Tuesday, October 11, 2011
Wednesday, September 28, 2011
Ten Tips for Getting a Fair Price on a Home
Whether it's a buyer's market or a seller's market, all homebuyers have one thing in common: they don't want to get ripped off. But how do you know if you're getting a fair deal on the home you're prepared to place an offer on? Read on to find out how to evaluate the price of any home so you can make a sound investment decision.
Research recently sold, comparable properties
A comparable property is one that is similar in size, condition, neighbourhood and amenities. One 1,200-square-foot, recently remodeled, one-story home with an attached garage should be listed at roughly the same price as a similar 1,200-square-foot home in the same neighbourhood. That said, you can also gain valuable information by looking at how the property you're interested in compares in price to different properties. Is it considerably less expensive than larger or nicer properties? Is it more expensive than smaller or less attractive properties? Your real estate agent is the best source of accurate, up-to-date information on comparable properties (also known as “comps”).
Check out comparable properties that are currently on the market
In this case, you can actually visit other homes and get a true sense of how their size, condition and amenities compare to the property you're considering buying. Then you can compare prices and see what seems fair. Reasonable sellers know that they must price their properties similarly to market comparables if they want to be competitive.
Look at comparables that were on the market recently but didn't sell
If the house you're considering buying is priced similarly to homes that were taken off the market because they didn't sell, the property you're considering may be overpriced. Also, if there are a lot of similar properties on the market, prices should be lower, especially if those properties are vacant. Check out the unsold inventory index for information about current supply and demand in the housing market. This index attempts to measure how long it will take for all the homes currently on the market to be sold given the rate at which homes are currently selling.
Consider market conditions and appreciation rates in the area
Have prices been going up recently or going down? In a seller's market, properties will probably be somewhat overpriced, and in a buyer's market, properties are apt to be underpriced. It all depends on where the market currently sits on the real estate boom-and-bust curve. Even in a seller's market, properties may not be overpriced if the market is on the upswing and not near its peak. Conversely, properties can be overpriced even in a buyer's market if prices have only recently begun to decline. Of course, it can be difficult to see the peaks and valleys until they're history. Also consider the impact of mortgage interest rates and the job market on the economy. (Knowing your mortgage choices is important.
Are you buying a for-sale-by-owner property?
A for-sale-by-owner (FSBO) property should be discounted to reflect the fact that there is no 6 per cent (on average) seller's agent commission, something that many sellers don't take into consideration when setting their prices. Another potential problem with FSBOs is that the seller may not have had an agent's guidance in setting a reasonable price in the first place, or may have been so unhappy with an agent's suggestion as to decide to go it alone. In any of these situations, the property may be overpriced.
What Is the expected appreciation for the area?
The future prospects for your chosen neighbourhood can have an impact on price. If positive development is planned, such as a major mall being built, the extension of light rail to the neighbourhood, or a large new company moving to the area, the prospects of future home appreciation look good. Even small developments like plans to add more roads or build a new school can be a good sign. On the other hand, if grocery stores and gas stations are closing down, the home price should be lower to reflect that, and you should probably reconsider moving to the area. The development of new housing can go either way - it can mean that the area is hot and is likely to be in high demand in the future, increasing your home's value, or it can result in a surplus of housing, which will lower the value of all the homes in the area.
What Is your real estate agent's opinion?
Without even analyzing the data, your real estate agent is likely to have a good gut sense (thanks to experience) of whether the property is priced appropriately or not and what a fair offering price might be.
Does the price feel fair to you?
If you're not happy with the property, the price will never seem fair, even if you get a bargain. Even if you pay a little over market value for a home you love, in the end, you won't really care.
Test the waters
Even in a seller's market, you can always offer below list price just to see how the seller reacts. Some sellers list properties for the lowest price they're willing to take because they don't want to negotiate, while others list their homes for higher than they expect to earn because they expect to negotiate downward or they want to see if someone will make an offer at the higher price. If the seller accepts your price or counteroffer, you'll get an indication that the property probably wasn't worth what it was listed for and you have a good chance at getting a fair deal. On the other hand, some sellers may underprice their properties in the hope of generating lots of interest and sparking a bidding war. Unlike on eBay, however, the seller doesn't have to simply sell to the highest bidder: Sellers can reject any and all offers that don't meet their expectations. If you have your heart set on the property, be warned that some sellers may be offended by lowball offers and refuse to work with you if you chose to employ such a tactic. Also, when you offer less than the list price, you may increase your risk of being outbid by another buyer.
Get an appraised value and a home inspection
Once you're under contract, the lender will have an appraisal of the property done (usually at your expense) to protect its financial interests. The lender wants to make sure that if you stop making your mortgage payments, it'll be able to get a reasonable amount of its money back when it forecloses on your home. If the appraisal comes in at considerably less than your offering price, you may not be getting a fair deal. In fact, the lender may not even let you purchase the home unless the seller is willing to bring the price down. A home inspection, which is completed after you're under contract, will also give you a way to gauge your offering price. If the home needs many expensive repairs, you'll want to ask the seller to make the repairs for you or discount the purchase price so you can make them yourself.
Conclusion
When you're shopping for a home, it's important to understand how homes are priced so you can make a sound investment and reach a fair agreement with the seller. Using these tips, you'll be able to make a confident and well-informed offer on any home in any market.
Amy Fontinelle
Published Thursday, Sep. 08, 2011 Globe and Mail
Research recently sold, comparable properties
A comparable property is one that is similar in size, condition, neighbourhood and amenities. One 1,200-square-foot, recently remodeled, one-story home with an attached garage should be listed at roughly the same price as a similar 1,200-square-foot home in the same neighbourhood. That said, you can also gain valuable information by looking at how the property you're interested in compares in price to different properties. Is it considerably less expensive than larger or nicer properties? Is it more expensive than smaller or less attractive properties? Your real estate agent is the best source of accurate, up-to-date information on comparable properties (also known as “comps”).
Check out comparable properties that are currently on the market
In this case, you can actually visit other homes and get a true sense of how their size, condition and amenities compare to the property you're considering buying. Then you can compare prices and see what seems fair. Reasonable sellers know that they must price their properties similarly to market comparables if they want to be competitive.
Look at comparables that were on the market recently but didn't sell
If the house you're considering buying is priced similarly to homes that were taken off the market because they didn't sell, the property you're considering may be overpriced. Also, if there are a lot of similar properties on the market, prices should be lower, especially if those properties are vacant. Check out the unsold inventory index for information about current supply and demand in the housing market. This index attempts to measure how long it will take for all the homes currently on the market to be sold given the rate at which homes are currently selling.
Consider market conditions and appreciation rates in the area
Have prices been going up recently or going down? In a seller's market, properties will probably be somewhat overpriced, and in a buyer's market, properties are apt to be underpriced. It all depends on where the market currently sits on the real estate boom-and-bust curve. Even in a seller's market, properties may not be overpriced if the market is on the upswing and not near its peak. Conversely, properties can be overpriced even in a buyer's market if prices have only recently begun to decline. Of course, it can be difficult to see the peaks and valleys until they're history. Also consider the impact of mortgage interest rates and the job market on the economy. (Knowing your mortgage choices is important.
Are you buying a for-sale-by-owner property?
A for-sale-by-owner (FSBO) property should be discounted to reflect the fact that there is no 6 per cent (on average) seller's agent commission, something that many sellers don't take into consideration when setting their prices. Another potential problem with FSBOs is that the seller may not have had an agent's guidance in setting a reasonable price in the first place, or may have been so unhappy with an agent's suggestion as to decide to go it alone. In any of these situations, the property may be overpriced.
What Is the expected appreciation for the area?
The future prospects for your chosen neighbourhood can have an impact on price. If positive development is planned, such as a major mall being built, the extension of light rail to the neighbourhood, or a large new company moving to the area, the prospects of future home appreciation look good. Even small developments like plans to add more roads or build a new school can be a good sign. On the other hand, if grocery stores and gas stations are closing down, the home price should be lower to reflect that, and you should probably reconsider moving to the area. The development of new housing can go either way - it can mean that the area is hot and is likely to be in high demand in the future, increasing your home's value, or it can result in a surplus of housing, which will lower the value of all the homes in the area.
What Is your real estate agent's opinion?
Without even analyzing the data, your real estate agent is likely to have a good gut sense (thanks to experience) of whether the property is priced appropriately or not and what a fair offering price might be.
Does the price feel fair to you?
If you're not happy with the property, the price will never seem fair, even if you get a bargain. Even if you pay a little over market value for a home you love, in the end, you won't really care.
Test the waters
Even in a seller's market, you can always offer below list price just to see how the seller reacts. Some sellers list properties for the lowest price they're willing to take because they don't want to negotiate, while others list their homes for higher than they expect to earn because they expect to negotiate downward or they want to see if someone will make an offer at the higher price. If the seller accepts your price or counteroffer, you'll get an indication that the property probably wasn't worth what it was listed for and you have a good chance at getting a fair deal. On the other hand, some sellers may underprice their properties in the hope of generating lots of interest and sparking a bidding war. Unlike on eBay, however, the seller doesn't have to simply sell to the highest bidder: Sellers can reject any and all offers that don't meet their expectations. If you have your heart set on the property, be warned that some sellers may be offended by lowball offers and refuse to work with you if you chose to employ such a tactic. Also, when you offer less than the list price, you may increase your risk of being outbid by another buyer.
Get an appraised value and a home inspection
Once you're under contract, the lender will have an appraisal of the property done (usually at your expense) to protect its financial interests. The lender wants to make sure that if you stop making your mortgage payments, it'll be able to get a reasonable amount of its money back when it forecloses on your home. If the appraisal comes in at considerably less than your offering price, you may not be getting a fair deal. In fact, the lender may not even let you purchase the home unless the seller is willing to bring the price down. A home inspection, which is completed after you're under contract, will also give you a way to gauge your offering price. If the home needs many expensive repairs, you'll want to ask the seller to make the repairs for you or discount the purchase price so you can make them yourself.
Conclusion
When you're shopping for a home, it's important to understand how homes are priced so you can make a sound investment and reach a fair agreement with the seller. Using these tips, you'll be able to make a confident and well-informed offer on any home in any market.
Amy Fontinelle
Published Thursday, Sep. 08, 2011 Globe and Mail
Tuesday, February 9, 2010
Most provinces, regions up as January housing starts on the rise, CMHC reports
By Luann Lasalle, The Canadian Press
MONTREAL - Canada's housing market is on the rebound with resales expected to set a new annual record this year and homebuilding off to a strong start, according to two reports issued Monday.
The Canadian Real Estate Association is forecasting that national home sales activity will reach 527,300 units this year, up 13.3 per cent from 2009. This would be a new annual record, up 1.2 per cent above the previous peak in 2007, CREA said Monday.
Low interest rates and home buyers wishing to avoid the harmonized sales tax before it comes into effect in Ontario and British Columbia will help fuel the resales in the first half of this year, the association said in a news release.
"Improved financial market stability and recovering global economic growth mean that home sales activity in 2010 is unlikely to repeat the dive it experienced in late 2008 and early 2009," said CREA chief economist Gregory Klump.
New housing starts have also gone up, according to figures released Monday by Canada Mortgage and Housing Corp.
The annual rate of housing starts reached 186,300 in January, up 5.8 per cent from 176,100 in December.
CMHC reports actual housing starts for 2009 totalled 149,081 units, with activity improving as the year progressed.
The agency said the urban starts increased 4.4 per cent to 165,200 in January.
Urban multiple starts rose 5.7 per cent to 76,300 while single urban starts increased 3.3 per cent to 88,900.
January's annual rate of urban starts increased 19.8 per cent in British Columbia, 7.3 per cent in Quebec, 2.3 per cent in Atlantic Canada, and 1.5 per cent in Ontario.
Urban starts were down 4.8 per cent on the Prairies.
Rural starts were estimated at 21,100 in January.
In a separate development announced Monday, the federal Competition Bureau says it's challenging rules imposed by the Canadian Real Estate Association, a body that represents nearly 100,000 real-estate brokers, agents and salespeople.
The federal agency says the CREA rules limit choices for consumers and force them to pay for services they don't want, also stifling innovation in the market for residential real estate services.
MONTREAL - Canada's housing market is on the rebound with resales expected to set a new annual record this year and homebuilding off to a strong start, according to two reports issued Monday.
The Canadian Real Estate Association is forecasting that national home sales activity will reach 527,300 units this year, up 13.3 per cent from 2009. This would be a new annual record, up 1.2 per cent above the previous peak in 2007, CREA said Monday.
Low interest rates and home buyers wishing to avoid the harmonized sales tax before it comes into effect in Ontario and British Columbia will help fuel the resales in the first half of this year, the association said in a news release.
"Improved financial market stability and recovering global economic growth mean that home sales activity in 2010 is unlikely to repeat the dive it experienced in late 2008 and early 2009," said CREA chief economist Gregory Klump.
New housing starts have also gone up, according to figures released Monday by Canada Mortgage and Housing Corp.
The annual rate of housing starts reached 186,300 in January, up 5.8 per cent from 176,100 in December.
CMHC reports actual housing starts for 2009 totalled 149,081 units, with activity improving as the year progressed.
The agency said the urban starts increased 4.4 per cent to 165,200 in January.
Urban multiple starts rose 5.7 per cent to 76,300 while single urban starts increased 3.3 per cent to 88,900.
January's annual rate of urban starts increased 19.8 per cent in British Columbia, 7.3 per cent in Quebec, 2.3 per cent in Atlantic Canada, and 1.5 per cent in Ontario.
Urban starts were down 4.8 per cent on the Prairies.
Rural starts were estimated at 21,100 in January.
In a separate development announced Monday, the federal Competition Bureau says it's challenging rules imposed by the Canadian Real Estate Association, a body that represents nearly 100,000 real-estate brokers, agents and salespeople.
The federal agency says the CREA rules limit choices for consumers and force them to pay for services they don't want, also stifling innovation in the market for residential real estate services.
Thursday, November 12, 2009
Canada new home prices jump most since Jan 2008
I am posting an article from Reuters about new home sales in Canada which of course relates to what is happening in the Toronto Real Estate market.
Canada new home prices jump most since Jan 2008
By Louise Egan
OTTAWA (Reuters) - New home prices in Canada rose in September at their fastest rate in 20 months, highlighting the country's strong housing market which contrasts with sluggish growth elsewhere in the economy.
Statistics Canada said on Thursday new home prices rose by a sharper-than-expected 0.5 percent in September. The federal agency cited improving markets and consumer confidence as reasons for the jump in the new housing price index, which exceeded market expectations for a 0.2 percent gain.
The 0.5 percent rise topped even the most optimistic of 15 analysts polled by Thomson Reuters.
The year-on-year decline in prices eased in September to 2.7 percent from a 3.1 percent decline in August.
"Real estate has been the economic surprise of 2009," said Stewart Hall, markets strategist at HSBC Canada in a note to clients.
Home sales are above peak levels seen prior to the global financial crisis and recession, which may be explained by pent-up demand, consumer confidence and rock-bottom interest rates, according to Hall.
"Today's new home price data seems to be pointing to an inflection point," he said.
Statscan said Vancouver and Ottawa-Gatineau led the gains with hikes of 1.4 percent and 1 percent, respectively. The largest decline was in Windsor, Ontario.
Canada's housing market slumped during the recession, which is believed to have ended in the third quarter, but recent data suggest the sector is one of the economy's strongest in the recovery phase.
Permits for housing construction in September surged 9.4 percent and the federal housing agency CMHC this month predicted a 26 percent rise in housing starts next year in Toronto, the country's most populous city.
But other economic data has cast doubt on the speed of economic recovery and on the Bank of Canada's projection of annualized growth of 2 percent in the third quarter.
Net exports are expected to continue to drag on the economy for some time. The median forecast in a Thomson Reuters poll is for a merchandise trade deficit of C$1.75 billion in September. Statscan will release the trade figures on Friday at 8:30 a.m.
By REUTERS, , Updated: November 12, 2009 11:28 AM
Canada new home prices jump most since Jan 2008
By Louise Egan
OTTAWA (Reuters) - New home prices in Canada rose in September at their fastest rate in 20 months, highlighting the country's strong housing market which contrasts with sluggish growth elsewhere in the economy.
Statistics Canada said on Thursday new home prices rose by a sharper-than-expected 0.5 percent in September. The federal agency cited improving markets and consumer confidence as reasons for the jump in the new housing price index, which exceeded market expectations for a 0.2 percent gain.
The 0.5 percent rise topped even the most optimistic of 15 analysts polled by Thomson Reuters.
The year-on-year decline in prices eased in September to 2.7 percent from a 3.1 percent decline in August.
"Real estate has been the economic surprise of 2009," said Stewart Hall, markets strategist at HSBC Canada in a note to clients.
Home sales are above peak levels seen prior to the global financial crisis and recession, which may be explained by pent-up demand, consumer confidence and rock-bottom interest rates, according to Hall.
"Today's new home price data seems to be pointing to an inflection point," he said.
Statscan said Vancouver and Ottawa-Gatineau led the gains with hikes of 1.4 percent and 1 percent, respectively. The largest decline was in Windsor, Ontario.
Canada's housing market slumped during the recession, which is believed to have ended in the third quarter, but recent data suggest the sector is one of the economy's strongest in the recovery phase.
Permits for housing construction in September surged 9.4 percent and the federal housing agency CMHC this month predicted a 26 percent rise in housing starts next year in Toronto, the country's most populous city.
But other economic data has cast doubt on the speed of economic recovery and on the Bank of Canada's projection of annualized growth of 2 percent in the third quarter.
Net exports are expected to continue to drag on the economy for some time. The median forecast in a Thomson Reuters poll is for a merchandise trade deficit of C$1.75 billion in September. Statscan will release the trade figures on Friday at 8:30 a.m.
By REUTERS, , Updated: November 12, 2009 11:28 AM
Tuesday, October 27, 2009
Globe and Mail Article
I am attaching an article posted in the Globe and Mail about the Real Estate market in the US. With the US market starting to turn around, this can only make the Toronto Real Estate market get even hotter.
J.W. Elphinstone
New York — The Associated Press
Published on Tuesday, Oct. 27, 2009 9:11AM EDT
Last updated on Tuesday, Oct. 27, 2009 10:16AM EDT
U.S. home prices rose for the third straight month in August, data Tuesday showed, a key sign for a broad and sustained housing recovery.
The Standard & Poor's/Case-Shiller home price index of 20 major cities climbed 1 per cent from July to a seasonally adjusted reading of 144.5. While prices are down 11.4 per cent from August a year ago, the annual declines have slowed since February.
Prices are at levels not seen since August 2003 and have fallen almost 30 per cent from the peak in May 2006.
The latest index shows a widespread turnaround with prices rising month-over-month in 15 metro areas since June.
“If the increases are consistent across the markets, this is key,” said Wharton School real estate professor Susan Wachter before the index was released. “Then we're seeing the formation of a bottom.”
However, Ms. Wachter along with other industry experts still worry that rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales.
First-time home buyers can receive a credit of 10 per cent of the sales price, up to $8,000 (U.S.). The real estate industry is lobbying Congress to extend the credit past the Nov. 30 deadline. Top Democrats in the Senate are pressing a plan that would prolong the credit but gradually phase it out over the next year.
Not all metros posted gains in August, though. Prices in Las Vegas, Seattle and Charlotte, N.C., all fell to their lowest levels in August. Prices in Las Vegas have plunged by 56 per cent since peaking in April 2006, the largest peak-to-trough decline of all 20 cities.
Toronto Homes for Sale | Toronto Real Estate Agent
J.W. Elphinstone
New York — The Associated Press
Published on Tuesday, Oct. 27, 2009 9:11AM EDT
Last updated on Tuesday, Oct. 27, 2009 10:16AM EDT
U.S. home prices rose for the third straight month in August, data Tuesday showed, a key sign for a broad and sustained housing recovery.
The Standard & Poor's/Case-Shiller home price index of 20 major cities climbed 1 per cent from July to a seasonally adjusted reading of 144.5. While prices are down 11.4 per cent from August a year ago, the annual declines have slowed since February.
Prices are at levels not seen since August 2003 and have fallen almost 30 per cent from the peak in May 2006.
The latest index shows a widespread turnaround with prices rising month-over-month in 15 metro areas since June.
“If the increases are consistent across the markets, this is key,” said Wharton School real estate professor Susan Wachter before the index was released. “Then we're seeing the formation of a bottom.”
However, Ms. Wachter along with other industry experts still worry that rising unemployment and more foreclosures could stifle the rebound. Another unknown is whether a temporary federal tax credit for first-time buyers will be extended to help boost sales.
First-time home buyers can receive a credit of 10 per cent of the sales price, up to $8,000 (U.S.). The real estate industry is lobbying Congress to extend the credit past the Nov. 30 deadline. Top Democrats in the Senate are pressing a plan that would prolong the credit but gradually phase it out over the next year.
Not all metros posted gains in August, though. Prices in Las Vegas, Seattle and Charlotte, N.C., all fell to their lowest levels in August. Prices in Las Vegas have plunged by 56 per cent since peaking in April 2006, the largest peak-to-trough decline of all 20 cities.
Toronto Homes for Sale | Toronto Real Estate Agent
Thursday, October 22, 2009
Toronto Star Article on Toronto Homes for Sale
Below is an article from the Toronto Star that might help explain what is currently going on with homes for sale in Toronto:
Analysts forecast near-record home sales in 2009
October 20, 2009
Tony Wong
BUSINESS REPORTER
Consumers can expect to be barraged with some headline-grabbing record home sales numbers over the next few months. But don't forget to put them into context, say analysts.
Last September, investment bank Lehman Bros. filed for the largest corporate bankruptcy in history, setting off a global credit crunch that seized markets. Consumer confidence waned in October, as buyers put off buying a home and the country slipped into recession.
"The markets completely froze. No one was buying anything," said Sal Guatieri, senior economist at BMO Financial Group. "So this year, the numbers are going to look really good in comparison."
The first of the favourable year-over-year real estate numbers came out Monday, showing home sales increased a hefty 34 per cent in the first two weeks of October, from the same period a year earlier.
The Toronto Real Estate Board reported 3,631 sales in the first half of the month versus 2,700 the year ago. Average price was up 17 per cent to $414,475.
"People were starting to get anxious about the housing market in October of last year, and then it was just terrible in November and December. So you'll see a lot of positive numbers for the rest of the year," said Toronto housing analyst Will Dunning.
Much of the current demand is driven by sales in Toronto where buyers have bid up prices on homes in choice neighbourhoods.
The City of Toronto average price was $455,001 while the 905 average price was $386,311.
Much of this year's buying activity has been from young first-time home buyers attracted by low interest rates.
Year to date, sales are up 6 per cent from 2008. Also, analysts expect this year to be the second best on record, with the peak year being 2007.
A recent bump in the five-year mortgage rate by most major banks of 0.35 percentage points last week will likely pull some pre-approved buyers forward this year, says Dunning.
TREB says a lack of listings will contribute to tight market conditions going into the fourth quarter. But more listings are expected in 2010 as consumers regain confidence and list their homes while buying move-up properties.
Meanwhile, a survey by TD Bank Financial Group released Monday says buying a house in the city, as opposed to condos or town homes, is still preferred by the majority of Canadians.
That typically means fixer-upper homes for young Canadians (18-34) because of cost. About 35 per cent of young people chose a home they planned to fix up.
"Buying in the city often means choosing an older home that needs work, so many are looking at renovating soon after they purchase," said TD Bank.
But paying off the mortgage does not have the same priority with younger Canadians according to the TD poll.
Fewer than half (49 per cent) of young Canadians agree that paying off the mortgage is a priority, even though it is for 64 per cent of those 55 and older.
I think this article sums up what is going on in the market and will help explain the situation with their search for homes for sale in Toronto and the GTA.
Toronto Homes for Sale | Toronto Real Estate Agent
Analysts forecast near-record home sales in 2009
October 20, 2009
Tony Wong
BUSINESS REPORTER
Consumers can expect to be barraged with some headline-grabbing record home sales numbers over the next few months. But don't forget to put them into context, say analysts.
Last September, investment bank Lehman Bros. filed for the largest corporate bankruptcy in history, setting off a global credit crunch that seized markets. Consumer confidence waned in October, as buyers put off buying a home and the country slipped into recession.
"The markets completely froze. No one was buying anything," said Sal Guatieri, senior economist at BMO Financial Group. "So this year, the numbers are going to look really good in comparison."
The first of the favourable year-over-year real estate numbers came out Monday, showing home sales increased a hefty 34 per cent in the first two weeks of October, from the same period a year earlier.
The Toronto Real Estate Board reported 3,631 sales in the first half of the month versus 2,700 the year ago. Average price was up 17 per cent to $414,475.
"People were starting to get anxious about the housing market in October of last year, and then it was just terrible in November and December. So you'll see a lot of positive numbers for the rest of the year," said Toronto housing analyst Will Dunning.
Much of the current demand is driven by sales in Toronto where buyers have bid up prices on homes in choice neighbourhoods.
The City of Toronto average price was $455,001 while the 905 average price was $386,311.
Much of this year's buying activity has been from young first-time home buyers attracted by low interest rates.
Year to date, sales are up 6 per cent from 2008. Also, analysts expect this year to be the second best on record, with the peak year being 2007.
A recent bump in the five-year mortgage rate by most major banks of 0.35 percentage points last week will likely pull some pre-approved buyers forward this year, says Dunning.
TREB says a lack of listings will contribute to tight market conditions going into the fourth quarter. But more listings are expected in 2010 as consumers regain confidence and list their homes while buying move-up properties.
Meanwhile, a survey by TD Bank Financial Group released Monday says buying a house in the city, as opposed to condos or town homes, is still preferred by the majority of Canadians.
That typically means fixer-upper homes for young Canadians (18-34) because of cost. About 35 per cent of young people chose a home they planned to fix up.
"Buying in the city often means choosing an older home that needs work, so many are looking at renovating soon after they purchase," said TD Bank.
But paying off the mortgage does not have the same priority with younger Canadians according to the TD poll.
Fewer than half (49 per cent) of young Canadians agree that paying off the mortgage is a priority, even though it is for 64 per cent of those 55 and older.
I think this article sums up what is going on in the market and will help explain the situation with their search for homes for sale in Toronto and the GTA.
Toronto Homes for Sale | Toronto Real Estate Agent
Friday, October 16, 2009
14 IMPORTANT FACTS TO CONSIDER BEFORE YOU TRY TO SELL YOUR OWN HOME WITHOUT USING A TORONTO REALTOR
Occasionally, one can see "For Sale By Owner" signs or in ads in the “houses for sale in Toronto” section of newspapers and websites, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a Toronto Realtor© . Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer's recommend selling your own home yourself in today's market. Here are a few of the reasons why:
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.
2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long... there must be something wrong with the home.
3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a Toronto Real Estate Agent, they are trained on how to overcome buyers remorse--a very common occurrence.
4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals.
8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher.
12. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer's to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Toronto Realtor© can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.
2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long... there must be something wrong with the home.
3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. If the buyer is represented by a Toronto Real Estate Agent, they are trained on how to overcome buyers remorse--a very common occurrence.
4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals.
8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher.
12. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer's to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Toronto Realtor© can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.
Subscribe to:
Posts (Atom)