October 2012 GTA Market Report

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Greater Toronto Realtors reported 6,896 sales through the MLS in October 2012. The number of transactions represented a 7.1% decrease compared to October 2011.  It is important to note that there were two more working days in October 2012 compared to October 2011. The majority of transactions are entered on working days. On a per working day basis, sales were down by 15.6% year-over-year.

The number of new listings reported in October was up by 6.1% compared to the same period in 2011.

“Sales have decreased in the second half of the this year compared to 2011, especially since the onset of stricter mortgage lending guidelines at the beginning of July. The prospect of higher monthly mortgage payments due to the reduced maximum amortization period has prompted some households to delay their home purchase” said Toronto Real Estate Board President Ann Hannah. “

The average selling price continued to grow in October up by 6.2% from the same time last year to $503,479. Price growth continued to be driven by the low-rise market segment in the City of Toronto, including semi-detached homes with an annual price increase of 7%. 

“We continue to see price increases well above the rate of inflation. Active listings have remained low from a historic perspective, so substantial competition between buyers still exists, especially for low-rise homes” said the Toronto Real Estate Board’s Senior Manager of Marker Analysis Jason Mercer. ”

“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate 4.0% annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer

Sales of Toronto (416 area code) condominium apartments decreased by 14.0% from October 2011. The average price of a Toronto condo decreased by 2.0% from the same time last year.

Condominium apartments accounted for 22.7% of total sales in the GTA for October 2012 while detached homes accounted for 48.5% of the total sales.

Other notable statistics include the average days on the market for October at 28 days. Active listings were 20,737 in October-up 6.2% from October 2011. The sales-to-listings ratio for October was 33.2% which is classified as a sellers 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 do 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.

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

Carnaby Row by StreetCar Developments

It has been an extremely hectic and exciting fall with absolute SUPER-HIT projects such as Ten York (88% SOLD in TWO WEEKS!) and One Park Place (ALMOST completely sold out!).

It’s all about picking and choosing the right project in the right location, at the right price, and at the right time.

I’d like to take this opportunity to introduce you to the THIRD top development this fall:

CARNABY ROW

by

Streetcar Developments in Partnership with Dundee Realty!

 

WHY DO I LIKE THIS PROJECT?

EXCLUSIVE PRE-LAUNCH RELEASE: Time sensitive, and an exclusive pre-launch release!

PRICE: AGGRESSIVELY ! at Platinum Pricing.

What is Platinum Pricing?

HUGE SAVINGS: Save prior to the next level of pricing! Prices will go up! (Official launch early 2013) 

LOCATION: Popular Queen West neighbhorhood located close to the famous Gladstone Hotel! 

METRO GROCERY STORE: Direct Access from the Ground Floor!

DEVELOPER: Streetcar Developments (The Carlaw, The Carnaby, Trinity Lofts) along-with real estate power-house, Dundee Realty (Involved with the purchase of the Scotiabank Tower)

This project will be attached to Carnaby Lofts (Phase 1) – this project is now 80% SOLD and was launched in early 2012 – sold for $550/SQFT – $100/SQFT MORE than this limited and exclusive release!

I AM INTERESTED IN PURCHASING….WHAT NEXT?
 
To register and get all of the information (including floorplans, prices and opportunity to purchase)  complete the form below!

Suites are being allocated on a first come, first served basis.

 [si-contact-form form=’3′]

 

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

Matrimonial Home, or Not? A $500,000 Question

Great artice in www.MoneyVille.ca 

A matrimonial home is recognized as a very special asset by the law in Ontario. That means that if the home is sold, it will usually be divided equally between the married couple, regardless who paid for it. Even if only the husband or the wife is on title to the property, it will take both of them to agree in writing to sell it.

In 1993, David Debora bought a cottage in Oro township, near Barrie as an investment. It was a 10,000 square foot cottage on 5 and a half acres of lakefront property. He bought it through his company of which he was the only shareholder. A year later, in 1994, he married Miriam Debora. They had been living together for seven years and had a child together in 1989.

Click here for more.

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

Canada’s Condos Are Getting Smaller

Great artice in http://Realtytimes.com 

British Columbia developer Tien Sher is planning to offer the country’s smallest condominium units, at just 290 square feet. The Surrey development will be in a four-storey building with 56 “micro” suites, the developer says.

“We wanted to build suites that renters could afford to purchase today,” says Charan Sethi, president of Tien Sher. “With suites starting at $109,900, if you can afford the $6,000 down payment and you make a salary of $17 per hour, we have a home for you.”

Click here for more.

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

Trump Tower Developer Suing 7 Disgruntled Investors to Close Deals They Now Regret

Great artice in www.TheStar.com 

Developers of Toronto’s Trump International Hotel & Tower have launched lawsuits against seven investors in an effort to force them to close on deals for condo-hotel suites some claim haven’t turned out to be the Hollywood gold buyers were expecting.

The legal move by Talon International Inc. comes at the same time that a London, Ont. doctor is seeking $750,000 in damages for “misrepresentation,” unless he can get back deposits on the hotel suite he bought in the ill-fated project back in 2009.

The court wrangling is just the latest round of problems to curse the celebrity hotel and condo project at Bay and Adelaide Sts.

Dozens of purchasers of suites in the 65-storey luxury hotel are now trying to get deposits back and renege on final payments averaging over $500,000.

Click here for more.

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

Top 3 Reasons to Buy NOW

Great artice in www.CanadianRealEstateMagazine.ca 

One of the most common catch phrases, veteran investor Paul Kondakos hears from Canadians reluctance to invest in real estate is “It’s not a good time.” Ah, but it is, he writes in this Top 3 list of reasons to commit.

That catch phrase is a very vague statement that can be interpreted to mean either (a) it’s not a good time for me personally to invest or (b) it’s not a good time to invest in the real estate market.

Granted that there may be circumstances thatpreclude certain individuals from investing in real estate for any number of reasons, but for the rest of you out there, “it’s not a good time” is a statement that can end up costing you tens of thousands to hundreds of thousands of dollars in potential real estate gains in the long term.

In fact, I believe “it’s always a good time” to invest in real estate (and let me be clear that I am talking about investing in cash-flowing real estate and not talking about speculating in real estate hoping for future appreciation).

When it comes to real estate investing, time is your biggest ally if you are invested and your greatest enemy if you are not. The phrase “Time is money” has never been truer when you apply it to real estate investing. Time facilitates the three most important pillars of real estate investing:

Click here for more.

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

When Can You Walk Away from a House Deal?

Great artice in www.MoneyVille.ca 

Putting your home up for sale can be a tough decision, but once made and the ball is rolling, you may not be able to change your mind. Last week’s column about a $3.3 million home sale that went wrong for the seller prompted several related questions from readers.

Here they are:

Is there a buyer’s remorse period in Ontario?

If you are buying a new condominium from a builder, you have 10 days to change your mind. You do not need a reason. This does not apply if you buy a new house from a builder and does not apply if you are buying a resale home or condominium. Why condos only? The clause is included in the Condominium Act.

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

Toronto Homeowners Face Property Tax Hike After Home Values Gain 22.8%

Great artice in http://business.financialpost.com

The average value of Toronto homes has risen 22.8% since 2008 and property taxes could rise as a result, according to the latest assessment by Ontario’s property appraisers.

The report released Friday by Ontario’s Municipal Property Assessment Corp. said property owners will see an average assessment increase of 5.5% in each year for the next four years as it phases in the increases.

“Residential property values have increased by an average of approximately 22.8% in the City of Toronto since 2008 when the last assessment update was delivered,” said Joe Regina, municipal relations account manager in MPAC’s Toronto office.

Click here for more.

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

Condo Boom Backfiring on Renters

Great artice in www.MoneyVille.ca 

Toronto renters have become unwitting victims of the condo boom.

There may be a record number of new condo projects on the books, but rental demand is so high and projects are taking so long to build, the number of new investor-owned rental units ready for occupancy isn’t enough to fill the gap, according to condo market research firm Urbanation.

New condo sales were down 30 per cent in third quarter over the second as developers held back launching new projects while they took a second look at pricing and units sizes in the face of softening demand.

Click here for more.

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

Opportunity Talks

Great artice in www.TheStar.com

Why the right time to buy real estate in Toronto is always right now

I’m often asked, “When is the right time to buy a home?” Conventional wisdom says, “Sell high, buy low.” I say, “Buy now to buy low.”

GTA real estate experts know that Toronto is undervalued by comparison to other world-class cities like London, New York and Paris. Any way you calculate them, our prices are much lower; they’ve been rising recently but they’re still nowhere near the prices in those other cities. Will our prices keep rising and eventually achieve parity with those other international destinations? Absolutely — and here’s why.

Toronto is in a unique economic real estate situation: constantly rising demand and constantly falling supply. When these two lines cross — as they’re doing right now — only one thing can happen: prices rise. We’ve seen this happen in Toronto for the last 16 consecutive years, with annual home prices increasing an average of approximately 6 per cent.

According to the Economist Intelligence Unit’s (EIU) most recent global liveability report, Toronto ranked as the world’s 4th-most liveable city. Close to 100,000 people a year, from both within Canada and internationally, come here to make a new life. Based on the provincial average of about 2.8 persons per household, 100,000 people require 35,000 homes. Some will rent, but most want their own piece of real estate, and opt to purchase a low-rise home.

Click here for more.

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

September 2012 GTA Market Report

Real Estate Coaching: Sign up here for FREE Real Estate Coaching…whether you are buying , selling or renting.

Free Real Estate Reports: click here to have access to many free informative buyer and seller reports.

Starbuck’s Coffee:  Please join my new Real Estate Fan Page here. When I reach 100 FANS I will be giving away a bunch of Starbuck’s coffee cards.

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Toronto Realtors reported 5,879 sales through the MLS in September 2012. The number of transactions represented a 20.8% decrease compared to September 2011.  It is important to note that there were two fewer working days in September 2012 compared to September 2011. The majority of transactions are entered on working days. On a per working day basis, sales were down by 12.5% year-over-year.

The number of new listings reported in September was up by 4.0% compared to the same period in 2011.

“While sales have been lower due to stricter mortgage guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing” said Toronto Real Estate Board President Ann Hannah. “

The average selling price continued to grow in September up by 8.6% from the same time last year to $503,662. Price growth continued to be driven by the low-rise market segment in the City of Toronto, including semi-detached homes with an annual price increase of 16%. 

 “Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached house and town homes” said the Toronto Real Estate Board’s Senior Manager of Marker Analysis Jason Mercer. ”

“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate 4.0% annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer

Sales of Toronto (416 area code) condominium apartments decreased by 29.0% from September 2011. The average price of a Toronto condo increased by 8.0% from the same time last year.

 

 

 

 

 

 

 

Condominium apartments accounted for 22.6% of total sales in the GTA for September 2012 while detached homes accounted for 48.7% of the total sales.

 Other notable statistics include the average days on the market for September at 28 days. Active listings were 21,621 in September-up 15.0% from September 2011. The sales-to-listings ratio for September was 27.0% which is classified as a balanced  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 do 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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