Some Interesting Real Estate InfoBits

Today’s Quote: ” No one cares how much you know until they know how much you care.

I just finished reading Gary Vanerchuk’s book Crush It.  Gary has an amazing story and writes about cashing in on your passion…whatever it is.  Gary will be speaking at our Remax Hallmark annual meeting.

Check out this video. Can you imagine if this happened in Toronto?

 

Did you know.. …

* My Market Experience Tours of homes and condos  are super popular and a terrific way to gain market knowledge. Sellers fear educated Buyers.

* Average prices in the new condo market rose by 4.3% in July  year over year to $529 per sq. foot in the GTA. Resale condo prices also increased by 5.7% to $391 per sq. foot.

* Here is an interesting chart showing prices per sq. foot in various neighbourhoods in downtown Toronto in 2010:

Avg $persf DT 

* According to Urbanation condo rents have been increasing, up 5.5% in the last quarter from a year earlier. This should help some investors stay in the market . Urbanation places the average rental price at $2.11 per sq. foot.

* Buyers originally from Pakistan, India, Iran, China , Korea and Russia are the biggest investors in the Toronto condo market.

* According to Tridel Corp, a large condo Builder in the Toronto area ,the average size of new condo units are getting smaller during the last 5 years, a trend that is expected to continue. Tridel says the most common layout is a one bedroom plus den followed by a one bedroom.

* According to Tim Bailey, general manager of Avid Canada a research and consulting firm: While many consumers are willing to forgo space they are not willing to forgo functionality, storage is extremely important to home buyers with walk-in closets as the No.1 must have feature, multipurpose rooms are in while formal living and dining rooms are out, open concept designs that connect the kitchen to family and dining areas attract buyers and outdoor cooking areas and outdoor fireplaces are an emerging trend.

* There are typically four levels of pricing in any new construction project:

a) Friends and Family

b) VIP Brokers/Agents

c) Lesser known Brokers/Agents

d) Public

By the time sales get to the general public 70% of the project is sold.

* Using the full amount of financing the bank preapproves you for can be financial suicide. The bank will preapprove you based on gross income. You live day to day based on your net income. A personal budget is a MUST as part of your home buying plan.

* There is no cost for a Buyer under a Buyer Representation Agreement to use a Realtor to represent their best interests to purchase a home. The Seller pays the commission which is typically 5%. Remember, the listing agent is representing the Seller’s best interests not the Buyer’s.

* It is crucial to have a plan in place before you can begin the buying process. Every goal requires a plan. Your Realtor should help you put together a systematic plan which will ultimately save you time , effort and money. Are you ready for your Buyer Planning Session ?

 Please contact me direct at 416-520-6746 or David@TorontoRealEstate.ca

 

“A Systemized Approach to Buying a Home”

 

“I was still new to Toronto and a first time homebuyer – not only did I know absolutely nothing about the home-buying process, but I did not have friends or family nearby to consult.  By the Grace of God I found David to guide me through the process. 

I have immense appreciation for the time that David spent with me, educating me about the entire process of home buying, from budgeting and mortgage options to the nature of the buyer agent/client relationship, market trends, and making offers to purchase.  What was extremely helpful for me was to begin the process with a budget review.  Even though I am careful with money and review my personal budget regularly, going through this process in the context of setting a realistic purchase price was so helpful, and aided by David’s gentle advice.  Closing costs were not a ‘surprise’ at the end as they can be for some – all of these additional costs were estimated before I starting looking at properties, and before I even signed an agreement with David. 

Having moved 16 times in the last 20 years, I can say I’m well practiced at choosing suitable rentable homes.  But buying is different, and mistakes can be financially and emotionally devastating.  Every time I looked at condo units with David, I learned something I hadn’t thought of before, that could affect the suitability or resale value of the unit in the future.  Typical ‘salesmen’ will focus only on the positive and be hard-pressed to point out potential pitfalls.  But David is not typical.  He is a truly exceptional person and businessperson.

By the time I was ready to purchase, I felt perfectly comfortable with the process, even in a multiple offer situation.  In fact, by the time we were done I ended up buying two condo units – a preconstruction unit and one to live in while it is being built.  Thinking beyond real estate, I struggle to think of any business experience I have had with someone that was more thorough, straight forward, accessible, easy to communicate with, efficient, impeccable in every respect, and with a client’s best interests at the forefront. 

David also has excellent referrals for all related services, and he coordinates with them extremely well.  Anyone who meets David’s high standards must be an excellent service provider.  This resulted in a seamless, stress-free, experience.  Needless to say, I offer the highest recommendation for David for any home buyer. ”

– Christine Hotz

Third Best June on Record

Do you want a good laugh? Check out this video!!

  Join me in a Tour of homes,  or a Tour of condos  . Each tour is specifically set up based on your search criteria.

The House or Condo Tour is a great way to figure out which neighbourhoods and home styles are right for you.

TREBMarketWatch-June-2011

Greater Toronto Realtors reported 10,230 sales through the MLS in  June, 2011 . The number of transactions represented a 21% increase compared to June,2010 and represented the third best June on record behind 2009 and 2007 .

 The number of transactions during the first six months of 2011 amounted to 48,189-down 4.5% compared to the first half of 2010.

” The strong June result capped off an interesting first half of 2011,” said Toronto Real Estate Board President Richard Silver .

” The pace of sales was a bit sluggish at the beginning of the year, but responded in May and June. because of the positive affordability picture, home buyers remained confident in their ability to purchase and pay for a home over the long term. “

The average home selling price for June transactions was $476,371- up 9.5% compared June, 2010.

The average home selling price year-to-date is $467,169-up 8.0% compared to the average reported the same time last year. Year-to-date sales are down 4.5% compared with the same period last year.

“While sales have been strong, we would be on track for a record number of transactions in 2011 if not for the decline in listings so far this year,” explained Jason Mercer TREB’s Senior Manager of Market Analysis. “

” Tight supply meant more competition between home buyers and an accelerating annual rate of price growth in the second quarter”, continued Mercer.

Condominium apartments accounted for 24.2% of total sales in the the GTA while detached homes accounted for 47.9% of the total sales.

Other notable statistics include the average days on the market for June at 24 days compared to 27 days the same time last year. Active listings were 18,171 in June 2011-down 24% from the June,2010. The sales-to-listings ratio for June was 56.3% which is classified as a seller’s market . A ratio from 24%-28% is considered a balanced market.  

Sellers are looking for market value for their property . I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range.

Real estate is very neighbourhood specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood or on one street does not indicate that all other neighbourhoods or streets are experiencing the same results. We are still seeing multiple offers in some areas for the best homes.

                                        Here are the preferred mortgage rates from one of my Mortgage Specialists as of July 22, 2011:

TERM

POSTED

OUR RATES

6 Month

4.45%

4.45%

1 Year

3.60%

2.75%

2 Year

3.95%

3.30%

3 Year

4.35%

3.40%

4 Year

5.04%

3.38%

5 Year

5.54%

3.56%

7 Year

6.44%

4.69%

10 Year

6.80%

4.99%

Variable Rate

2.20%

Prime Rate

3.00%

 

 * Let’s meet for a NO OBLIGATION Buyer Planning Session.  FREE Knowledge is power in your planning  Click Here

 Please contact me at 416-520-6746 or by email, David@TorontoRealEstate.ca