Reasons To Buy Now

It's still a great time to buy despite the new mortgage rules and predictions about the real estate market via the media. I give you some food for thought as to why it's a good time to buy now in my guest post for the Streetseed blog, just click here.

What are your thoughts?

Mid Month Market Watch

I just realized it's the end of the month and I haven't discussed the real estate numbers during the first 14 days of July 2012. I guess time just got away with me and this month blew by really fast, which means summer is almost over :( On the bright side, the numbers are positive (despite of what the media is saying) so lets take a look at them...

• 3,679 sales reported through the MLS during the first 14 days of July 2012, a 5.6% increase when compared to July 2011
• Average selling price in the GTA is...$473,466, up 2.3% when compared to the same time last year
• Average selling price in the 416 area is...$496,645, up 3.5% when compared to the first 14 days of July 2011

Notable News:

• Price growth was strongest in the City of Toronto
• New listings were up 14.4% over the same time frame
• Housing demand strong in the regions surrounding the City of Toronto

 Although new listings were up when compared to last year, I still believe that the reason why price growth was the strongest in the City of Toronto is due to a lack of listings in the low rise single family home sector, in downtown Toronto. Recently when I've been doing searches for clients in neighbourhoods just north of Bloor heading south, it's slim pickings! There is still a shortage of good quality listings out there, making it a good time to sell while most potential Fall sellers are on vacation. On average homes sold for 98% of list price during the first 14 days of July and took on average of 25 days to sell, these are all positive numbers! What summer slow down you say? Also keep in mind that these numbers are being compared to last year, which was a record year for real estate in general.

Now, let's discuss all the attention that the surrounding regions have been getting. To start off with the hustle and bustle of downtown Toronto is not for everyone. For a growing family that's looking for a lot more space and something easier on the pocket book, may look outside of Toronto to get more bang for their buck. Also buyers are more reluctant to purchase in Toronto due to the extra costs associated with the Toronto Land Transfer Tax and sellers are hesitant to list, especially if they want to stay in Toronto. A lot more sellers are choosing to stay and renovate and who can blame them?

All these factors help to paint a true picture of what's going on in the Toronto real estate market and help explain the reasoning behind the numbers that are being reported by TREB. Jason Mercer, Senior Manager of Market Analysis at TREB is predicting a better supplied market causing a slower annual rate of price growth for the second half of 2012. Will this actually come into fruition or are we just gearing up for a really strong Fall market? I guess only time will tell and you bet I'll have my 2 cents on it.

What do you think?

Monthly Newsletter: July

This month I'm going to do things a bit differently for the newsletter and will continue to do so from now on. We are going to review the overall real estate numbers for the GTA and then look at the numbers specific to Junction Triangle, Wallace-Emerson and Dovercourt Park, so let's start!

GTA:

• 9,422 home sales reported through the MLS in June 2012, the number of transactions were down by 5.4% when compared to the same time last year
• the year-over-year decline was the largest in the City of Toronto by 13% when compared to June 2011
• Average selling price in the GTA is...$508,622, up 7.3% compared to the same time last year
• Average selling price in the 416 area...$554,077, up 8.3% compared to June 2011

Notable News:

• the numbers don't necessarily mean a drop in home values or a down market, there is still a shortage of single family home listings in downtown Toronto, so even if buyers want to buy, there's not much available to buy, which shows in the number of sales
• The Toronto Land Transfer Tax is still a sore spot with a lot of people, including myself, causing buyers to search and buy outside the GTA
• GTA housing market still remains affordable in the GTA according to the new mortgage lending guidelines
• 35% of the average household income is going towards mortgage, principal, interest, property taxes and utilities of an average priced home, which is below Jim Flaherty's affordability ceiling of 39%

Junction Triangle:

• 5 homes sold in the Junction Triangle during June 2012 
• Average price $500,280
• On average these properties took 17 days to sell and sold at 100% of their listing price

Wallace-Emerson:

• 6 homes sold in Wallace-Emerson during June 2012
• Average price $537,417
• On average these properties took 19 days to sell and sold at 110% of their listing price

Dovercourt Park:

• 7 homes sold in Dovercourt Park during June 2012
• Average price $613,286
• On average these properties took 9 days to sell and sold at 107% of their listing price

Do you live in one of these neighbourhoods and are thinking of selling? I think the numbers speak for themselves whether it's a good time or not. There still are lots of hungry buyers out there waiting for listings and yours could be next, I'd be more then happy to discuss this further with you.

Here's a video from Jason Mercer, TREB's Senior Manager Market Analysis discussing the outlook for the remaining year:



What did you think of the statistics by neighbourhood? Want to know what's happening in your neighbourhood, but don't see yours here? Then get on the list to receive your monthly in depth neighbourhood report. All you have to do to get on the list, is visit http://www.torontoweststats.com/, it's that easy! Until next month...

Monthly Newsletter: June

I'm back from vacation and although it's always sad to see it end, I'm glad to be back to work and blogging! May was a really busy month for me as I was rushing to finish my 4th renovation project, which was also featured on Design Sponge, hence the lateness of this newsletter. But better late then never, so let's review the Toronto real estate numbers for May as well as the first 14 days of June 2012.

May 2012 from TREB's report:

• 10,850 transactions reported through the MLS for May 2012, up 11% from May 2011
• Average price in the GTA.....$516,787, up 6.5% from the same time last year
• Average price in the "416" area....$568,768, up 5.9% from May 2011

The biggest sales growth, believe it or not, was in the "905" area. The sales amounted to 6,720 transactions for the month of May 2012, which is a substantial amount, especially when compared to the "416" area which came in at 4,130 transactions for May 2012. There definitely was a shift in May as Toronto prices continued to rise higher and higher, making the "905" look more affordable and better bang for your buck in terms of lot and home size. Also, a recent poll suggested that not only have the lower prices pushed the attention and shift to the "905" region, but the Toronto Land Transfer tax has buyers looking outside of Toronto, said TREB president Richard Silver. You can send a big "thank you" to our mayor Rob Ford, who is still yet to abolish this tax as he promised in his campaign.

Another interesting piece of news from this report was that listings were up substantially when compared to May 2011. We haven't really seen this in the Toronto real estate market for almost 2 years now! Listings rose by more then 20% to 19,177 when compared to a year-over-year basis, said Jason Mercer, TREB's senior manager of market analysis. If new listings continue to grow at this pace, the remaining half of the year will see prices at a more moderate growth rate, which is great news for buyers!

Here's a video with further analysis for the May 2012 market and the remaining year:


We are not done yet! Now that we're up to speed on the May Toronto real estate market numbers, let's look at the numbers during the first 14 days of June 2012 from TREB's report:

• 4,597 transactions reported through the MLS, results that were on par with June 2011
• Average price in the GTA....$516,834, up over 8% when compared to the same time last year
• Average price in the "416" area....$566,527, up over 9% when compared to the first 14 days of June 2011

Listings continued to rise, a trend we observed in May and were up by 16% to 8,382 when compared on a year-over-year basis. What does this mean for the Toronto real estate market going into the second half of the year? Will prices finally moderate after almost 2 years of exceptional price growth and low inventory? At this pace, that will be the case, giving buyers more variety and less pressure. Jason Mercer, TREB's senior manager of market analysis said the following:

"The annual rate of price growth remains very high in the GTA. Increased listings will result in more balanced market conditions over the next year, but it will take some time before price growth will moderate to a more sustainable pace. Right now, months of inventory remains very low from a historic perspective and will likely not climb back to the pre-recession norm until 2013"

Definitely some food for thought, and definitely not anywhere near the doom and gloom the media has been spewing for the last year. The pressure on Toronto prices and inventory will be further pushed by our beloved Toronto Land Transfer Tax, which I will make mention of, once again. A recent poll suggested that 3/4  of people in Toronto and surrounding "905" areas who are planning to move in the next 2 years said they would be more enticed to move outside of the Toronto area due to the extra associated costs with the Toronto Land Transfer Tax, said TREB president, Richard Silver. Do you agree? Are you one of the 3/4 of people in the same boat? Or it is worth it to pay a few thousand dollars more in a real estate transaction for the convenience of living closer to work, the arts, entertainment and culture that Toronto has to offer versus wasting your time and gas in a car traveling 2 hours on average each day. I know my answer is hell ya, but what about you?

Well, that's all folks, let me know your thoughts!

***Image via Top News***

Outlook On Canadian Housing Market

I have some exciting news to share. Brennan Valenzuela from RateHub and I will be swaping blog posts once a month! His posts will be featured here and mine will be featred on RateHub's blog. For those of you who don't know what RateHub is all about, I'll fill you in. It's an easy to use platform where they compare banks and broker rates as well as present mortgage information in a simple to understand way.

Take it away Brennan...........

The Canadian housing market is on edge. Open a newspaper. Click through a blog. Listen to a podcast. The amount of content debating a possible Canadian housing crash is as feverish to TMZ buzzing about Lady Gaga’s latest meat dress. So, why is everyone so concerned? Because a Canadian housing collapse would likely take the economy with it, as evidenced by the US sub-prime mortgage crisis that spurred the financial crash of 2008.

How safe is Canada’s housing market and are we doomed to repeat the same fate?

Ratehub has examined the data and fine print to determine the likeliness a US-style housing burst could occur in Canada. There are qualities of the 2007 US housing market that are present in our current Canadian housing market which should be a concern, however, Ratehub feels the Canadian housing market will cool, not crash due to some very fundamental differences between the two nations.

The similarities: Why we should be worried

Sky-rocketing residential home prices are the most obvious shared similarity between the two markets. During the peak of the US housing bubble, it required 473% of the median household income to purchase a median priced home (approx. $225,000). Currently, the average Canadian home price is $369,677 for a multiple of six times the Canadian family after-tax income of $60,000.

An ultra-low mortgage rate environment also helped fuel the US housing bubble by making it cheap for consumers to borrow money. During the early 2000s, highly favoured 30-year fixed rate mortgages reached record lows in the US. Current mortgage rates in Canada are also at historic lows. For example, 10-year fixed rates are available at an unprecedented rate of 3.79%.

The biggest red flag, which has caused Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney to express concern, is Canada’s rising level of household debt. Today, the average Canadian owes $1.56 for every $1.00 they make – a ratio the US hit during the height of their crash.

The differences: What helps shield us

Canadians are internationally known as conservative people. We’re polite. We say ‘thank you’ and ‘excuse me’. Canada maintains strict mortgage underwriting standards. A stated income mortgage is one where the borrower cannot verify their income through traditional methods. Without ‘hard-proof’ of income, stated income mortgages pose a serious risk to lenders. During the US housing bubble, almost half of subprime mortgages were made up of stated income mortgages as lenders began reducing the qualifications for proof of income. Back in the Great White North, stated income mortgages make up less than 5% of all mortgages.

Subprime mortgages accounted for one in every five mortgages in the market during the US housing crash. US lenders became riskier with their lending practices to increase their bottom line.
One of the most well-known consequences of the US housing bubble was home owners ‘walking away’ from their home because they could no longer afford their mortgage. In Canada, lenders can pursue defaulting borrowers for the full amount.

Finally, mortgage-backed securitization is not as prevalent in Canada as it was during the US mortgage crisis. Our lenders must keep 70% of the mortgages they originate on their balance sheets while only 30% are securitized (sold to investors). Lenders in the US securitized 60% of the mortgages they originated, or double the Canadian equivalent.

What will happen to the Canadian housing market?

The market is poised for a correction, but a soft correction. Although Canada shares many similarities with the housing market that fell apart 5 years ago in the US, there are some notable differences that shield us from the same fate. Canada maintains stricter mortgage practices including borrower qualifications and mortgage products that don’t rely on teaser rates and no-money down.

The following article was written by Brennan Valenzuela for Ratehub.ca, a mortgage rate comparison website that is dedicated to helping and educating first-time home buyers.

For more information make sure to follow Rate Hub on Twitter and like them on Facebook. Thanks Brennan and see you next month!

Mid April Market Report

I'm back with more Toronto real estate numbers for you.....are you sick of them yet? Since my last market update, there hasn't been much change. It's still on fire with no signs of slowing down as we proceed into the spring market.

So let's cut straight to the point and review the Toronto real estate market number's from TREB's report:

• 4,557 transactions reported through the MLS during the first 14 days of April, up by almost 7% from April 2011
• In the City of Toronto, new listings for low-rise home types during the first half of April where down when compared to last year
• Average selling price in the 416 area is.......$553,104, up 2% from the same period last year
• Average selling price in the GTA is.......$506,954, up 5% from April 2011

Let's just say that conditions are still favourable for sellers, as I'm sure you are all seeing over the media. The even better news, is that the Toronto real estate market will continue it's upward climb over the next 3 years, as reported by Central 1 Credit Union, with gains predicted at 4% both this year and next. Hopefully, if this prediction comes true, believe me, I'm keeping my fingers and toes crossed being a home owner myself, the average cost of a Toronto home in 2014 would be $523,000!!!! Now you're probably thinking, what about interest rates? There must be a hidden catch, well, the report also made these statements based on a 5 year rate of 5.7% by 2013. As Helmut Pastrick Central 1 chief economist said, "While interest rates are expected to climb further in 2014, they are likely to remain at historic lows".

What about the condo market you say? There has been a lot of bad press recently about an oversupplied condo market, a bubble waiting to burst. During the first 14 days, condos also saw gains that surpassed last years.  The average selling price in the 416 area is $364,516, up 4% since last year. With high demand of renters wanting to live closer and closer to where they work, the condo market will be well stocked for the future demand to come. Let's face it, our population is growing, there are plenty of new immigrants coming into Canada, still and Canada remains an attract country for foreign investors. This is a recipe for success in our condo market. As Helmut Pastrick said, "It looks like that market will perform reasonably well. There may be some oversupplying coming but I think the market will generally handle that....." Pastrick further said, "In fact, with the GTA's population expected to increase by about 45% over the next 25 years, the need to go up, rather then out, is likely to keep the demand for condos steady."

It basically looks like the market is not slowing down anytime soon, so you might as well make the best of it as a buyer, by taking advantage of the historically low interest rates or as a seller and receiving top dollars for your investment. Which side are you on?

Well, I think I've said an earful as usual, so I'm done, for now. What are your thoughts? Would love to hear from!
***Image via Flickr***

Monthly Newsletter: April

The Toronto real estate market continues to be hot, hot, hot as we head into the spring market, actually who am I kidding, we ARE in the spring market! The continued lack of inventory is still fueling bidding wars across the GTA between buyers, pushing the average price higher and higher. In fact, the average price on the Toronto Real Estate Board in the GTA rose to $501,614 for the month of March, a 10% increase when compared to March 2011. In the 416 area the average price pushed to $548,354, which is a 9% increase from March 2011.

Although the number of new listings was up when compared to March 2011, they are still not at healthy levels when compared to the relationship of price and listings. I'm finding that the really good listings are far and few in between and of course either have offer deadlines or 24-48 hour irrevocable requests, which might as well be an offer deadline as it entices multiple offers still. There's no winning here for buyers, unless your pockets are deep! The one positive thing buyers have going for them is continued low historic rates, borrowing has never been so affordable.

For those buyers who are waiting for prices to drop or the market to cool before they enter the real estate market, better get off their butts and make some moves. Last year I had a few people who refused to buy because they were convinced there was a big real estate crash heading our way in 2012, all thanks to the media, are kicking themselves for not buying sooner, considering the average price is hovering around the half a million dollar point and will probably continue throughout 2012 as pointed out by Jason Mercer, Senior Manager of Market Analysis. Boy are they sorry they didn't jump the gun in 2011, so don't get suckered into the same rut this year. There is no such thing as a perfect market, it's always a catch 22, as they say. When prices are lower and the market is better supplied, interest rates are higher, when prices are higher and inventory is low, interest rates are also low. It's simple economics, supply vs. demand, so don't wait!

Sellers who are waiting to sell, for what reason I don't know, do some spring cleaning and decluttering and get that house on the market ASAP! No time like the present, with 9,690 transactions reported through the TorontoMLS in March 2012, why not sell your home now? Ton's of buyers and low inventory make it favourable conditions for sellers.

Bottom line, if you or someone you know is thinking about buying or selling real estate, I would appreciate you letting me know, so I can help! I promise to take extra special care of you and your referrals.

Now before I sign off, I leave you with a video, I'm mean who doesn't love to watch a video? It's the TREB Market Watch for March 2012:


Have a great April!

Your friend in real estate,

***Image via CanEquity***
***Statistics via TREB***

Mid March Market Report

It's that time again to discuss the Toronto real estate market during the first 14 days of March, but before I share the numbers with you, I just have to say that the market is hot, hot, hot, if you haven't noticed.

Here are the numbers you've been waiting for, from TREB's report:

•  4,215 transaction reported through the MLS during the first 14 days of March, up 7% from March 2011
• Number of listings were down 2% year-over-year, hence all the madness between buyers
• Average selling price in the 416 area is.......$553,536, up 9%  from the same period last year
• Average selling price in the GTA is.............$502,155, up from March 2011

This is great news for all the sellers out there, who saw their homes selling for 100% of asking price and within 3 weeks! If you're a buyer, don't panic yet, although the numbers during the first 14 days of March 2012 reflect strong sellers market conditions, I've been seeing a lot more listings coming on the market in the last half of the month. Sellers have been hit with spring fever as Toronto has been experiencing above average temperatures and are excited about the upcoming spring market, which tends to be the busiest time of year in real estate. So my advice to all you buyers, be patient for just a little while longer as the tide is about to turn.

Also fueling this frenzy of multiple offers and bidding wars has been the current mortgage wars. BMO brought back their 2.99% 5 year fixed rate, which caused the other major banks to follow suit. Borrowing has never been so affordable and buyers are definitely taking advantage as the variable rate becomes less attractive in the long run. Now, before signing on the dotted line, make sure you review and understand the terms and conditions of your mortgage. I know BMO's offer is a "no frills" mortgage meaning, no prepayment privileges and higher penalties then normal for breaking the mortgage before 5 years, among other conditions. Meanwhile RBC started offering the same rate, but with "frills", so make sure to do your homework and choose a mortgage that suits your life now and in the future.

Bottom line, it's a great time to sell, so if you're contemplating that for sale on your lawn, do it sooner rather then later, as who knows where the Toronto real estate market will stand within a couple of weeks let alone next month. Don't forget that I can help you or your referrals, so make sure to contact me with all your questions and concerns. Now, don't get me wrong, it is still predicted to be a strong spring market, but why wait for your competition, when you can beat them to the chase and be the kid on your block that receives top dollars for your home due to low inventory levels. Also, who knows when rates will go up, so take advantage now of the large pool of buyers house hunting and willing to spend the dough!

What are your thoughts? Are you a frustrated buyer or an eager seller? I would love to hear from you!

Monthly Newsletter: March

The Toronto real estate market continues to be extremely busy due to an unusually low inventory of homes available for sale. The pool of 14,546 homes currently on the market is slightly more than 2 months of inventory and that has lead to strong competition between buyers, bidding wars and price increases. In fact, the average price on the Toronto Real Estate Board rose to $502,508 in February, breaking the $500,000 mark for the first time.

Now do not panic! It’s just one month, and these are very unusual market conditions. The market is strong and prices will continue to increase, but certainly not at the same levels as February. As we head into spring and more homes come on the market, some of the pressure on prices will be relieved.

February saw the sale of 7,032 single homes, an 11% price increase over February 2011. After two months, the average price of a home in the GTA stands at $487,254.

While the expensive homes get the publicity, it’s important to realize that many homes are still affordably priced. Of the 7,032 homes sold in February;

4,629 or 66% were under $500,000

3,274 or 47% were under $400,000

1,594 or 23% were under $300,000.

In fact only 6% or 407 homes sold in February were over $1,000,000!  Combined with low interest rates, houses remain affordable for a household earning the average income in the GTA.

Those two factors – availability of reasonably priced property and low interest rates –continue to encourage and allow buyers to enter the real estate market, ensuring a demand for houses and that real estate remains a good investment.

It is still a great time to buy, and I strongly encourage my clients to buy investment properties as Canada and Toronto continue to grow due to immigration and a strong economy.

If you know someone thinking of buying or selling, I would appreciate you letting me know so that I can help him or her. I promise to take extra special care of your referrals!

Have a great March!

Your friend in real estate,

Monthly Newsletter: February

I know this newsletter comes extremely late, but it's always a good time to look and analyze the numbers for the Toronto Real Estate market. I will start off by discussing the numbers for January 2012 and end off with the numbers for the first 14 days of February 2012.

The Toronto real estate market continued its frenetic 2011 activity right into 2012! Not only has the real estate activity continued, but low inventory levels of homes available for sale has pushed prices up almost 9% compared to January 2011.

A strong economy, continued immigration and low interest rates have created a favorable affordability situation, where buyers not only want to buy, but can actually afford to buy.

With 4,567 sales reported in January by the Toronto Real Estate Board, 2012 is shaping up to be another boom year. Hopefully as we get deeper into the year, the pressure on prices will release slightly as more homes come on the market.

I was looking back at the history of house prices in Toronto. 20 years ago, the average price of a house was $234,313. Today its $463,534. Sometimes I wonder – how many people missed the real estate boat? How many people are waiting (some for years now) for prices to adjust, for the bubble to burst? I know a few!

I don’t know if there is a bubble and I do not know if prices will adjust, but I do know that Toronto will continue to grow. I know that immigrants from all over the world find shelter and freedom from all kinds of persecution on our shores. I know that Canadians from other parts of Ontario and other provinces come to Toronto for jobs and opportunity. I know that demand causes prices to increase. I don’t know what will happen to prices tomorrow, but I believe that home prices will double in the next 20 years.

On that note, let's reflect back on the numbers for the first 14 days of February 2012 from TREB's report:

• 3,206 transactions reported through the MLS during the first 14 days of February, up more then 9% compared to the 2,933 sales reported during the same time in 2011
• Average selling price in the 416 area is.......$543,068, up 9% from the same period last year
• Average selling price in the GTA is..............$491,493, up by 9% from February 2011

The good news for buyers is that listings were up 13% during the first 14 days of February when compared to the same period in 2011, which will hopefully ease some of the competition happening between buyers in the market place and stabilize home prices.

On the flip side, the good news for sellers during the first 14 days of February is that sellers received on average 99% of their asking price and their homes were on the market for an average of 25 days. So if you're thinking of selling your home this year, no time like the present to do so and I can help!

So, I continue to encourage you, my clients, to buy real estate. Buy an investment property, buy a downtown condo if your kids are planning to go to University, invest in your country and your future!

I leave you now with a video of Jason Mercer from TREB discussing the Toronto Real Estate market in January 2012 and the outlook for the rest of 2012:

Also check out the new MLS Home Price Index, very exciting for real estate:

Have a great March and please call me if you have any questions or know of someone thinking of buying or selling. And don't forget about my referral contest too (click here for more details). I appreciate your help and support!

Your friend in real estate,

Top 10 Neighbourhoods To Buy In TO

Towards the end of last year, I did a blog post about the top 10 neighbourhoods to buy in Toronto, as reported by Toronto Life. At the time, the full report wasn't out, I was just giving you a sneak preview. Well, it finally is, so let's go into more detail about where to buy now in Toronto according to Toronto Life.


1. Mimico, "because it's one lakefront revitalization that's on schedule":
-Waterfront views not blocked by the Gardiner
-Lakeshore Blvd. is showing signs of revitalization
-Big lot sizes
-Boundaries:

• From Islington Ave to the Humber River
• From the Gardiner Expressway to the lake

-Average prices:

• 2010 $390,677
• 2011 $441,642

2. East End Danforth, "because million-dollar homes, modest semis and co-ops commingle close to the beach":
-Great urban mix
-Anything goes here from brand new townhomes, to detached Edwardians to co-op housing mixed with parks and the boardwalk
-Boundaries:

• Woodbine Ave to Victoria Park Ave
• Doncaster Ave to Kingston Rd

-Average prices:

• 2010 $470,180
• 2011 $499,022

3. Christie Pits, "because good parks make good neighbours":
-Big community vibe with the garden and summer movie nights
-More toddlers and strollers vs. crime and drug dealers
-Homes with history
-How can you say no to the new Starbucks?
-Boundaries:

• From Ossington Ave to Christie St
• From the railroad tracks north of Dupont St to Bloor St W

-Average prices:

• 2010 $533,213
• 2011 $623,609

4. St. Lawrence, "because everything an urbanite needs is within a five minute walk":
-Spacious condo units
-Has the St. Lawrence market!
-New condo buildings being developed
-Very walker friendly, but anti-car
-Boundaries:

• From Yonge St to Parliament St
• From Front St E to the Gardiner Expressway

-Average prices:

• 2010 $385,609
• 2011 $401,811

5. L'Amoreaux, "because the suburban ideal is alive in Scarborough":
-Big lot sizes
-Majority of homes are 4 bedroom minimum
-Public schools have specialty programs
-Lot's of greenery
-Boundaries:

• From Victoria Park Ave to Kennedy Rd
• From McNicoll Ave to Huntingwood Dr

Average prices:

• 2010 $314,152
• 2011 $322,496

6. Blake-Jones, "because of the friendly cul-de-sacs in the pocket":
-15 minute comunte to downtown
-Neighbours actually know each other
-Residents are committed to greening the area
-Boundaries:

• From Pape Ave to Greenwood Ave
• From Danforth Ave to the railroad tracks north of Gerrard

-Average prices:

• 2010 $485,535
• 2011 $584,455

7. Davisville Village, "because it's the last place under $1 million off Yonge":
-Great schools
-Family friendly
-Beautiful homes between $600,000-$800,000 while having the conveniences of Yonge St
- Yummy cafes and restaurants
-Boundaries:

• From Yonge St to Bayview Ave
• From Eglinton to Mount Pleasant Cemetery

-Average prices:

• 2010 $592,110
• 2011 $604,556

8. Corktown, "because the historic neighbourhood has lofty ambitions":
- Turned into a booming neighbourhood with plenty of lofts
-River City development
-Regent Park revitalization
-Boundaries:

• From Berkeley St to River St
• From Shuter St to Front St

-Average prices:

• 2010 $428,017
• 2011 $501,055

9. Wallace-Emerson, "because urban tastemakers and young families are changing the neighbourhood":
-Hipsters are snatching up properties in this area
-Lot's of new bars, cafes and restaurants
-Still affordable and close to downtown
-And it's close to my hood!
-Boundaries:

• From the railroad tracks west of Perth Ave to Dufferin St
• From the railroad tracks above Dupont St to Bloor St

Average prices:

• 2010 $418,698
• 2011 $434, 112

10. Brockton Village, "because Lansdowne's shedding  its grundgy skin-without becoming generic":
-Affordable yet urban
-Several hip shops, cafes, brunch spots and restaurants
-Old Victorian homes are a favourite
-Boundaries:

• Railroad tracks off Dundas St W
• Meeting at Dufferin and Queen West and Bloor St

-Average Prices:

• 2010 $418,698
• 2011 $434,112

Those are your top 10 neighbourhoods to buy in now! Let me know if your hood made the list or if you agree or disagree with the choices.

Have a great weekend!
***Maps via Wikipedia***
***Information via Toronto Life***

Mid January Market Report

It's that time again for my mid month market report regarding Toronto real estate. I'm sure the numbers will not come as a surprise to you considering we finished off 2011 really strong and it obviously has carried over into the new year.

Here are the numbers for the first 14 days of 2012 from TREB's report:

• 1,506 transactions reported through the MLS during the first 14 days of January, up 6% from January 2011, that's pretty strong!
• Average selling price in the 416 area is....$467,152, up 12% from the same period last year
• Average selling price in the GTA is....$444,473, up 8.5% from January 2011

These numbers indicate that the Toronto real estate market is still hot and very much in a sellers market! No doom and gloom as predicted by the media time and time again, especially with the announcement by BMO (Bank Of Montreal) of a 2.99% 5 year fixed rate, people would be crazy not to buy something and take advantage of this rate for the next 5 years. But before you get too excited about this rate, it does come with some stipulations, one of the more important ones being the amortization rate, which is 25 years and not the 30 years we are use to seeing. This may actually not be a bad thing as our banks want to prevent the same scenario that happened in the US and with a rate this low, people may think they can afford more expensive houses without thinking of the future and that's what we have the banks for.

Which leads me into my next point of discussion. In TREB's report it said that the strongest price growth was for single detached homes in the City of Toronto. The average price in the 416 area code was up by 22% year-over-year, wow!!!  What does that mean? Well considering that we have 9.2 million generation Y (born from 1977-1994) buyers, it seems like, while some of these buyers are entering into the real estate world for the first time via condos, the others are ready to move on and start families, needing more space and a backyard for their kids. This growth is also supported by our historically low interest rates, meaning people think and can, afford more then before. Clearly buyers are taking advantage of the rates, as is indicative by the numbers.

Lastly, a recent study released by Legatum Institute, which measured the world's most prosperous nations, ranked Canada as the sixth best country in the world based on criteria that have an effect on economic growth and personal well being. So if this doesn't have you convinced that Canada is doing just fine, despite all the negativity we have been hearing, then I give up! I'm not saying that we shouldn't watch what we spend and accumulate a lot of debt, but what I am saying is that we should continue to support our banks in their conservative approaches and exercise the same practices in respect to our household finances This will keep our nation going strong and prevent any housing catastrophes. The ball is in our court, so use it wisely.

What are your thoughts?

Monthly Newsletter: January

As 2011 progressed and the demand for houses never abated, we knew we were experiencing an above average year for real estate activity in Toronto. We were right!

The 4,718 homes sold in December brought the total sales in 2011 to 89,347, the second-best year in Toronto's history. Prices continued to rise in 2011 and ended the year at an average $465,412, an 8% increase over 2010's $431,267.

The boundaries of the Toronto Real Estate Board are made up of many smaller communities. Here are some average prices of a few of them:

Toronto West	$474,270	Aurora	$527,065
Toronto Central	$566,589	Markham	$548,989
Toronto East	$392,768	Ajax	$347,075
Vaughan	$567,258	Whitby	$341,819
Richmond Hill	$601,855	King City	$792,591

Even these smaller communities cover vast areas with varying prices and unique neighborhoods. City of Toronto Central covers an area from the Lake in the south to Steeles Ave in the north. That’s why it’s critical to deal with a full time agent who knows your particular neighborhood, like myself, who lives and works in Toronto West.

2011 also marked a new high of listings to sales ratios, as 89,347 of the 146,937 listed homes sold (61%). The list price to sale price remained high at 99% and the average home took 26 days to sell.

 There are many predictions about the economy and real estate prices in 2012. TREB’s forecast for 2012 is for an average price of $485,000, a 4% price growth. These predictions remind me of the weather forecasts, as often wrong as right. Here are the facts as I see them:

• The economy is strong
• Immigration continues at record levels
• The cost of housing is affordable due to low interest rates
• Builders are building smaller units to keep prices down and encourage sales
• Rental rates are similar to the cost of home ownership
• The "boomers" little kids are almost all grown up. Members of Generation Y - a.k.a the "millennials" or "echo boomers" born from 1977-1994 - numbered around 9.2 million in Canada in 2011. They are ready to buy!

These factors will continue to keep the real estate market active and prices will continue to rise. How much? Only the weatherman knows for sure!

What we do know for sure, is right now inventory still remains low and there are plenty of hungry buyers looking to buy before the spring market gets into full gear. Therefore if you're thinking of listing your home or condo, now is the best time to do it, before the March madness comes. So make sure to give me a call to see what your options are.

I leave you with a video from TREB summarizing some key points for the end of 2011 and outlook for 2012:

Have a super 2012, and remember, I am never too busy for your referrals!

Your friend in real estate,

Mid December Market Report

I know this report comes a bit late, but with Christmas just around the corner, it's been pretty crazy here! I figure though it's better late then never, so let's discuss the Toronto housing market and the numbers during the first 14 days of December 2011.


First let's start out by pointing out some numbers from TREB's report:

• 2,699 transactions reported through the MLS during the first 14 days of December, up 11% from December 2010, not bad for what is usually known as a quiet month
• Average selling price in the 416 area is.....$486,414, up 3% from the same period last year
• Average selling price in the GTA is.....$460,967, up 6% from December 2010
• On a year to date basis, sales amounted to 87,407, up 4.3%  compared to 2010

Although all these numbers indicate an increase in home prices this year when compared to last, I would have to agree with Jason Mercer (TREB's Senior Manager of Market Analysis) when he said that the housing market still remains affordable in the GTA. It definitely remains unchanged though, as the market continues to be a sellers market and hasn't really seen a buyers market this year, which has been a bit frustrating! I am still seeing very limited inventory and bidding wars and I think it's going to remain the same in the next few weeks. Which brings me to my next point, what can we expect for 2012?

There has been a lot of talk about the Toronto housing market in 2012 and I feel like majority of the news has been doom and gloom, which I find pretty typical of the media. I mean how many times have we heard negative things over the years about the housing market, freaking out our buyers, making us, Realtors, have to do damage control and then the predictions never materializing. I have one buyer couple that wanted to buy a condo last year, but heard through the media, that prices were dropping in 2011, so they decided to wait, even though I told them differently. Of course, prices never dropped this year and now they are kicking themselves for not buying. The same condo unit they were looking at last year, went up $50,000-$60,000 this year!!! The icing on the cake this month was the article written by Financial Post a couple of days ago with a headline of  "Look for 5% to 10% drop in home prices in first half of 2012", my phone was ringing off the hook with either buyers that I'm working with now and buyers who just recently purchased. Like who writes these articles? Economists who have never worked a day in the real estate field and use models that they plug a bunch of numbers into and get results without actually looking to see what is happening in the day to day market. Yes, I do understand that Canada's housing boom is among the longest in the Western world as reported by The Globe And Mail recently and that something has to give, but I don't think it will be that dramatic as everyone saying it will be. I agree with TREB's president, Richard Silver, when he says, "As this trend continues into 2012, we will see more balanced market conditions". What does "more balanced market conditions" mean? I guess we will have to wait until 2012 to find out, but I definitely do not think the real estate market is heading into bad times. Canada remained relatively strong after the housing crash in the U.S and will continue to remain strong despite what is happening in Europe thanks to our conservative lending guidelines.

The Canadian Real Estate Wealth reported recently that compared to global real estate markets, Canada is mostly average in their housing price gains. Since 1998, home prices in Canada have risen 85%, which you may think is high, but lets take at look at Ireland, which came #1 on the list, experiencing price gains by 330% from 1992-2007. It has one of the largest overall price gains when compared to 12 Western countries. The other leaders are Australia, up 114% since 1996 and the UK up 174% since 1995. So when put into perspective, Canada, as the article says, "...falls in the middle of the pack".  Now keep in mind that I haven't discussed the booming condo market in Toronto, but I will leave that discussion for another day.

Overall, I really believe that the Toronto real estate market will do just fine, if not great in 2012. With the continued low interest rates and Mayor Rob Ford's commitment to repeal the land transfer tax beginning in 2012, as reported by TREB, we will see a continued strong, healthy and balanced market for the upcoming new year. At the end of the day people have to remember that real estate is a cycle and what goes up must come down and vice versa, it's a circle that never ends and always rebounds. Real estate is always the better investment choice then anything else we have out there. For now I'm waiting to ring in the new year with the highs of 2011 and have confidence it will continue into the new year, but I guess only time will tell.

What do you think?

***Image via Really Better Real Estate***

Cheap vs. Rich Housing Markets

On MSN News, I recently came across the 10 least expensive cities and 10 most expensive postal codes to buy in, in Canada. Frankly speaking, I wasn't really surprised at the results, but I thought I would share them with all of you. I know my neighbourhood, the Junction Triangle, definitely did not make either lists, which I guess is a good thing overall, but what I do know is that it's not cheap to live in Toronto and I wouldn't trade it for the world. I know for myself, that I could never live in the suburbs even if it meant having more land and cheaper housing as I'm a city girl at heart and I would want my future children to be as well. Having said that, I also do not need to live in the most expensive neighbourhood either, I hope my future place of residence, somewhere I won't move for a long time, is Palmerston Blvd, a neighbourhood with a ton of history and walking distance to Bloor St and College St (and yes I know it's not super cheap to live there either). Now that I have completely gone off on a rant, here is the information you have been waiting for. I will start with the least expensive cities first. Keep in mind that the average price of a home in the GTA for October 2011 was $478,137 (TREB).

10 Least Expensive Cities To Buy A Home



10. St. Catharines

• October 2011 $243,103
• Change from October 2010 +2.6%

9. London and St. Thomas

• October 2011 $238,963
• Change from October 2010 +2.0%

8. Sudbury

• October 2011 $237,072
• Change from October 2010 +9.1%, wow!

7.  Gatineau

• October 2011 $231,601
• Change from October 2010 +5.9%

6. Sherbrooke

• October 2011 $217,007
• Change from October 2010 +10.1%

5. Windsor-Essex

• October 2011 $175,386
• Change from October 2010 +1.3%

4. Saguenay

• October 2011 $174,653
• Change from October 2010 +3.4%

3. Thunder Bay

• October 2011 $167,424
• Change from October 2010 +26.4%, that's a big jump!

2. Saint John

• October 2011 $161,691
• Change from October 2010 -2.0%, property values went down

And the cheapest city to buy a home is............

1. Trois Rivieres

• October 2011 $154,537
• Change from October 2010 +0.7%

Would you live in any of these cities for the cheaper real estate and potentially more land?

Now here comes the good stuff, where the wealthy Canadians call home......

10 Most Expensive Postal Codes To Buy A Home



10. Kleinburg, Vaughan (L0J)

• Prices $800,000-$6.3 million
• Average Net Worth: $2.5 million

9. Forest Hill South, Toronto (M5P)

• Prices $1million-$13million
• Average Net Worth: $2.5 million

8. Chartwell and Bristish Properties (V7S)

• Prices $2million-$13million
• Average Net Worth: $2.69 million

7. St. Andrew-Windfield West (M2P)

• $800,000-$5.5 million
• Average Net Worth: $2.7 million

6. Horeshoe Bay and Area (V7W)

• Price $850,000-$16 million!!!!
• Average Net Worth: $2.99 million

5. Springbank (T3Z)

• Prices $1million-$6million
• Average Net Worth: $3.1 million

4. St Andrew-Windfield East (M2L)

• Prices $1million-$10million
• Average Net Worth: $3.4 million

3. Rosedale (M4W)

• Prices $1million-$9million
• Average Net Worth: $3.6 million

2. Westmount (H3Y)

• Prices $1million-$4.5million
• Average Net Worth $3.69 million

And the most expensive neighbourhood to buy a home is............

1. Lawrence Park (M4N)

• Prices $1million-$9million
• Average Net Worth $3.8 million

 Do you live in any of these neighbourhoods? If so, can we be friends?