Real Estate Information: Pickering, Ajax, Pickering Village, and Durham Region

GTA REALTORS® Report Mid-Month Resale Housing Market Figures

Steinhausen — Thu, 17 May 2012 14:30:57 +0000

Greater Toronto REALTORS® reported 5,142 transactions through the TorontoMLS System during the first 14 days of May 2012. This result was up by more than 14.5 per cent in comparison to the first 14 days of May 2011. The number of new listings continued to grow at a slower pace than sales – up 13 per cent year-over-year to 8,749.
“Annual growth in sales was experienced across the GTA for all major home types in the first half of May. Sales growth was strongest for the condominium apartment segment. While the condo market has generally been the best supplied market over the past year, we have continued to see enough demand to exert moderate upward pressure on average selling prices in this market segment,” said Toronto Real Estate Board President Richard Silver.
The average selling price for transactions in the first 14 days of May was $517,242 – up by six per cent compared to the same period in 2011.
“A shortage of listings in the low-rise segment of the market has resulted in a lot of competition between buyers and above average annual rates of price growth. Tight market conditions are expected to remain in place for the balance of 2012,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

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Demographics make big city condos hot

Steinhausen — Mon, 14 May 2012 17:10:51 +0000

National averages are $372,762 at home versus $203,100 south of the 49th parallel. One might argue that something has got to give.
By analyzing housing starts in Canada, we can get a good indication of future trends in real estate. Warm weather throughout most of Canada was credited with being the catalyst for a very strong month of March in new homes. April was expected to be lacklustre, but those expectations were blown out of the water with 244,900 housing starts last month, compared to an estimate of 204,000. This was the best month in about five years, well prior to the onset of the 2008 recession. These numbers have some questioning the sustainability of starts as well as eliciting further calls for a housing bubble here in Canada.
Of particular interest was that nearly two-thirds of new homes last month were multifamily units, which includes condominiums — a 27% increase year-over-year on a seasonally adjusted basis.
Canadian housing also topped a recent global list published by the Economist for 12-month price change, increasing 7%, while ranking high on a comparison of home prices to both rents and average incomes. Overall, the Economist suggests that Canadian homes are 54% overvalued relative to a 19% undervaluation in the U.S.
Canada’s housing agency shrugs off ‘bubble’ talk, defends role in debt financing
Toronto’s condo market not so ghostly?
So clearly it doesn’t take a statistics degree to read the numbers and unequivocally declare the Canadian housing market is overheated and in particular, the condo market, right? Wrong.
First off, CMHC’s recently released annual report stated: “Clear evidence of a bubble is lacking [and we] continue to monitor very closely housing prices and underlying factors such as demographic and economic fundamentals and financial conditions across all major urban centers, including condominium markets.”.
Furthermore, averages can be deceiving and may not be representative of a particular local market. A lack of supply in posh parts of the Greater Toronto Area, for example, has been driving bidding wars and pushing prices considerably higher in some neighbourhoods. Perhaps people are keen to lock in today’s low mortgage rates and are willing to buy a house in their desired neighbourhood regardless of the cost. In the short run, this drives up average prices. In the long run, does this really matter?
The big question based on Canada’s relatively high prices and April’s enormous inventory of new condos is whether the condo market is really experiencing a bubble? One of the key considerations for the purchase of any home has always been location. And location is one of the main reasons the condo market is not in a bubble.
What are many Baby Boomers going to do in coming years? Many will be selling the two-storey houses where they raised their families and buying condos, both for lifestyle reasons and also to bank some money to fund their retirement.
What are many young families going to do in coming years? If they want to live in Canada’s big, expensive cities like Vancouver, Toronto and Montreal, they’ll do what’s been done in the likes of New York, London and Tokyo for years — they’ll buy a condo.
What are many new immigrants going to do in coming years? In recent years, about 70% of Canadian immigrants end up in the big three — Vancouver, Toronto and Montreal. And they don’t buy houses in the suburbs. They rent condos in the city, so they can be close to jobs, resources and cultural centres until they are established.
Demographics (Baby Boomers), family finance (big city housing affordability) and global mobility (immigration to the world’s new “America”) make condos the location of choice for tomorrow’s Canadian home buyers.

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Market Remains Tight with Sales Up in April

Steinhausen — Fri, 04 May 2012 17:26:19 +0000

Greater Toronto REALTORS® reported 10,350 transactions through the TorontoMLS system in April 2012. This level of sales was 18 per cent higher than the 8,778 firm deals reported in April 2011. The strongest sales growth was reported in the single-detached market segment, with transactions of this home type up by 22 per cent compared to a year ago.

“Interest in single-detached homes has been very high, both in the City of Toronto and surrounding regions. Growth in single-detached listings has not kept up with demand, which means competition between buyers in this market segment increased. With this in mind, it was no surprise that the strongest annual price increase was also experienced in the single-detached segment,” said Toronto Real Estate Board President, Richard Silver.

The average price for April 2012 transactions was $517,556 – up 8.5 per cent compared to April 2011. While price growth was strongest for single-detached homes, the better-supplied condominium apartment segment experienced a more moderate annual rate of price growth, at four per cent.

“Monthly mortgage payments remain affordable for home buyers in the Greater Toronto Area. While interest rates are generally expected to increase over the next two years, the extent and timing of rate hikes has been thrown into question by slower than expected economic growth in the first quarter of this year. On net, borrowing costs are expected to remain a positive factor influencing home sales through 2012,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

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Do You Know the Basics of Home Security?

Steinhausen — Thu, 03 May 2012 18:21:16 +0000

Most people feel confident about the basics of home security. For example:
Keep all doors locked. Have a light on in the house while away. Never hide
a key outside in an obvious place, like under the mat.
• Yet, almost a million and a half properties get burglarized in
North America each year. So how can you prevent that from
happening to your home? Here are a few less known home
security basics:
• Actually, never hide a key outside. Thieves know all the hiding
places. Instead, make sure all family members have a key.
• Two-thirds of home burglaries occur during the day. So be
extra vigilant about making sure doors and windows are
locked while you’re away during the day.
• Surprisingly, most thieves are not daring. They are 2.7 times
more likely to target a home without an alarm system.
• Thieves will attempt to force entry through sliding-style doors
and windows first. So make sure these have a locking bar or
extra bolt lock.
• Surprising, 40% of household burglaries do not involve forced
entry. The thief is able to slip in through an unlocked window
or door.
• Don’t show off possessions! An imported racing bike parked
next to the garage, or expensive audio equipment clearly seen
through a window, is an invitation to burglars.
• Take a look at the lighting and landscaping around your
property. Are there spots where a thief could easily hide? If so,
make some changes.
• When planning a trip, have a trusted neighbour pick up
newspapers, flyers and anything else that may accumulate at
your door.
Your local police department may have more tips and special programs for
keeping your home secure. Give them a call.

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Canada’s Housing Market cooling

Steinhausen — Thu, 26 Apr 2012 14:44:33 +0000

TORONTO — Canadian home resale prices sagged in February from January, the Teranet-National Bank Composite House Price Index showed on Wednesday, and the pace of year-over-year growth has slowed.
The index, which measures price changes for repeat sales of single-family homes, showed prices fell 0.2% in February from January, in a modest cooling of what has been a hot market across much of Canada. It was the third decline in four months.
The index was up 6.1% in February from February 2011, but that was down from January’s 6.5% year-on-year rise.
“Today’s print is consistent with our theme of modest cooling in the housing market in 2012,” Andrew Kelvin, senior fixed income strategist at TD Securities, said in a research note. “In the very near-term, we expect that the low interest rate environment should lend support to housing in general.”
But TD expects interest rates to start rising in September, and Kelvin said higher rates could reinforce the cooling in the housing market.
The frothy housing market, and rising debt levels to finance home purchases, are two of the biggest concerns for Canadian policymakers as the domestic economy recovers from recession. Higher interest rates will add to debt servicing costs, with a knock-on effect on spending across the economy.
The Teranet index showed prices were down from the previous month in six of the 11 metropolitan markets surveyed. Victoria saw a 1.1% drop, while Vancouver slipped 0.3%. Edmonton dipped 1% and Calgary prices retreated 0.6%. Prices rose a steep 1.6% in Quebec City, with more modest rises in Halifax, Montreal and Winnipeg. In Toronto, one of the strongest markets in recent months, prices climbed 0.1%.
Year-on-year prices rose 10% in Toronto, followed by Winnipeg, up 8.2%. In Vancouver, which has also been a hot market, the 12-month gain was 6.2%, also above the national 6.1% average.
TD’s Kelvin said a modest cooling in the housing market will be most prevalent in regions where housing excesses are perceived to be the greatest, such as Vancouver.
“Keep in mind that while this data suffers from timeliness, it is broadly consistent with the timelier existing home series which has showed decreased activity in the Vancouver market,” he said. “Prices in Toronto remain buoyant however, with year-over-year appreciation remaining firm.”
The index, which is similar to the U.S. S&P/Case-Shiller home price index, tracks repeat sale prices, so properties with at least two sales are required in the calculations. It lags other home resale data by about six weeks.

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What is Rent to Owm

Steinhausen — Fri, 20 Apr 2012 16:19:52 +0000

Rent to own home is like a car lease.Renters pay a certain amount in addition to rent each month to live in the house, and at the end of a lease period say three years — they have the option to buy the house. Each month,a part of rent goes towards the down payment to buy the home they are renting.
For buyers, who have no down payment and can’t yet afford to buy,it is the best option. The seller set the sale price of the house at the time of lease agreement.If the house price goes up or down during that time,the original agreed sale price is final. In Toronto Market there are very few if any available at this time.

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Mid-Month Resale Housing Market Figures

Steinhausen — Wed, 18 Apr 2012 17:55:56 +0000

Toronto, April 18, 2012 – Greater Toronto REALTORS® reported 4,557 transactions through the TorontoMLS system during the first two weeks of April 2012. This result represented an increase of almost seven per cent in comparison to the same period in April 2011. The number of new listings grew over the same period, but by a lesser annual rate than sales, which means market conditions tightened compared to last year.
“Competition between buyers remained strong in many parts of the Greater Toronto Area during the first half of April, with many listings attracting a lot of attention. Strong competition meant that, on average, sellers priced within market value range received offers that matched their asking prices within three weeks,” said Toronto Real Estate Board President Richard Silver.
The average selling price during the first two weeks of April was $506,954 – up by five per cent compared to the first half of April 2011. The annual rate of price growth was stronger in the GTA regions surrounding the City of Toronto.
“Growth in listings has not kept up with growth in sales. In the City of Toronto, new listings for low-rise home types during the first half of April were actually down compared to last year. This helps explain why some of the tightest market conditions in the GTA can be found within the ‘416’ area code,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

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Why Toronto’s overheated Housing Market is unsustainable

Steinhausen — Tue, 17 Apr 2012 20:08:40 +0000

While Canada’s high-flying housing market continues to stabilize, it’s increasingly evident that one city — Toronto — is a glaring exception.

In sharp contrast to price moderation in most cities and a significant drop in Vancouver, where buyers are being priced out of the country’s costliest market, Toronto buyers are on a spending spree — one that looks as if it won’t end well.

I would feel a lot better if I were counting half as many cranes — TD Bank chief economist

New figures from the Canadian Real Estate Association show prices up by 10.5% in Toronto over the past 12 months, the only major city with a double-digit gain. In contrast, Montreal gained a modest 3.7% and Vancouver is down by 3.1%.

On average, national home prices in March, influenced by the big Vancouver market, edged down half a percentage point from an exceptionally high level this time last year.

This is in line with the expected trend for a relatively flat market this year, said Sonya Gulati at the TD Bank. TD predicts that national prices will increase 2.1% for all of 2012 as sales flatten.

The bank calculates the average national price is probably 10 to 15% above a sustainable level, but doesn’t foresee any big drop, Gulati said.

Instead, it expects prices to drift down gradually once interest rates begin rising, probably in mid-2013. Its forecast is for a decline of 3.6% in 2013 and 4.3% in 2014.

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Reason People Buy

Steinhausen — Mon, 09 Apr 2012 15:57:44 +0000

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Tight Market Drives Double-Digit Price Growth

Steinhausen — Thu, 05 Apr 2012 19:11:01 +0000

TORONTO, April 4, 2012 Greater Toronto REALTORS® reported 9,690 sales
through the TorontoMLS system in March 2012. This result was up by almost
eight per cent in comparison to the 8,986 deals reported during the same period
in 2011.
“The GTA resale market has not suffered from a lack of willing buyers this year.
Buyers have been spurred on by the positive affordability picture brought about
by low mortgage rates,” said Toronto Real Estate Board President Richard Silver.
“The challenge has been a lack of inventory. Many listings have attracted multiple
interested buyers. Strong competition has led to annual rates of price growth well
above the long-term average.”
The average selling price in the GTA was $501,614 in March – up by 10 per cent in
comparison to March 2011.
“The number of new listings was up last month in comparison to March 2011.
However, based on the historic relationship between price and listings, the GTA
resale market should be better supplied. If competition between buyers remains
as strong as it is right now, we will almost certainly see an average selling price
above $500,000 for 2012 as a whole,” said Jason Mercer, TREB’s Senior Manager
of Market Analysis

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