Sales Dip in November While Selling Prices Increase

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Greater Toronto Realtors reported 5,793 sales through the MLS in November 2012. The number of transactions represented a 16.1% decrease compared to November 2011

The number of new listings reported in November was up by 1.3% compared to the same period in 2011.

“Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012” said Toronto Real Estate Board President Ann Hannah. “

“ Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront land transfer tax takes money away from buyers that otherwise could be used for a larger down payment,” continued Hannah.

The average selling price continued to grow in November up by 1.6% from the same time last year to $485,328. 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 4.0% and townhouses with an annual price increase of 5.0%. 

“The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over $1m was down substantially, which influenced the overall average price” 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 25.0% from November 2011. The average price of a Toronto condo decreased by 4.0% from the same time last year.

Condominium apartments accounted for 23.8% of total sales in the GTA for November 2012 while detached homes accounted for 46.9% of the total sales.

Other notable statistics include the average days on the market for November at 30 days. Active listings were 18,311 in November-up 17.8% from November 2011. The sales-to-listings ratio for November was 31.6% 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

Why GTA Housing Market Will Stay Strong in 2013

Great artice in www.MoneyVille.ca 

 I  was perplexed by the headlines last week after the release of the Bank of Canada’s “Financial System Review,” a comprehensive 63-page report that looked at a wide range of issues, including the challenges faced across the global market, interest rate projections and Canadian household finances and the housing market. When a multi-faceted report like this is released, we all have to work together to better understand the very dynamic and complex housing market, especially in the GTA, so I’m going to try and provide some context and clarity.

First, some context: every year 100,000 people choose the GTA as their home. That is the equivalent of the population of St. John, N.B., moving here every year. To provide homes for this growing population, our industry builds about 40,000 homes annually to meet the demand

Click here for more.

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

Why Are There So Many Condos Under Construction?

Great artice in www.YourHome.ca 

 I  was perplexed by the headlines last week after the release of the Bank of Canada’s “Financial System Review,” a comprehensive 63-page report that looked at a wide range of issues, including the challenges faced across the global market, interest rate projections and Canadian household finances and the housing market. When a multi-faceted report like this is released, we all have to work together to better understand the very dynamic and complex housing market, especially in the GTA, so I’m going to try and provide some context and clarity.

First, some context: every year 100,000 people choose the GTA as their home. That is the equivalent of the population of St. John, N.B., moving here every year. To provide homes for this growing population, our industry builds about 40,000 homes annually to meet the demand

Click here for more.

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

Toronto Leading the Western World in Highrise Development

Great artice in www.MoneyVille.ca 

Toronto’s stretch into the skies is capturing the attention of the world.

Tall-building development here is outpacing every other city in the Western Hemisphere with 15 skyscrapers exceeding roughly 45 storeys now under construction, according to a new study by the Council on Tall Buildings and Urban Habitat.

That means by 2015, Toronto will be home to 44 highrises exceeding 150 metres, more than triple the 13 skyscrapers that graced the city’s skyline in 2005, says the Chicago-based clearing house on all the latest in tall building design and construction.

In a report titled “Canada Rising,” the well-respected council points to the Great White North’s fast-paced push upwards in just the last eight years. And it credits Toronto with “spearheading a countrywide interest in tall building development” that has seen a dramatic shift away from simply highrise office towers to homes in the heavens that are transforming the look and feel of Canada’s major cities.

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

Rental Vacancies Drop Despite GTA Condo Boom

Great artice in www.MoneyVille.ca 

The rental market remains tight across the GTA — and especially in the highly-coveted downtown core — despite a surge of new condos over the last five years that now account for 16 per cent of all the rental units in the region, according to the Canada Mortgage and Housing Corporation.

While the vacancy rate for rental apartments bumped up slightly in October over a year earlier, it still remains at one of its lowest levels in a decade, 1.7 per cent, compared to an even lower vacancy rate of 1.2 per cent for rental condos, the federal housing authority said Thursday.

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

No-Pet Clauses in Leases Lack Teeth

Great artice in www.MoneyVille.ca 

Pets. Landlords don’t want them in their properties. Tenants can’t live without them. Unfortunately, the law in Ontario just makes it worse for everyone.

Under the law, you can’t prevent a tenant from bringing a pet into your property, unless it is a condominium and the building declaration says no pets. So even if a landlord and tenant sign a lease that says no pets, the tenant can bring 2 dogs and 4 cats the next day and there is nothing the landlord can do about it.

Yet if the landlord has a no pet policy in the entire building, they can probably refuse to approve the tenant in the first place if they know the tenant has a pet. You start to see the problem. If the tenant is honest up front and tells the landlord they have a pet, their application can be refused. If the tenant lies on the application and then brings in a pet afterwards, there is nothing the landlord can do. The result is often a poisoned relationship, right from the start.

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

The Upside to a Housing Downturn

Great artice in www.MoneyVille.ca 

A cooler housing market isn’t all bad news, a major Canadian bank says.

Lower prices could benefit young couples struggling to save for a down payment and also retirees who dream of moving to British Columbia, the report by CIBC World Markets predicts.

While slowing home sales will “take a bite” out of Canada’s economic growth, “less well understood” is the fact there will be winners and losers across the economy, the report released Thursday said.

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