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Toronto Real Estate Reports Strong Sales/Price Growth
Greater Toronto Realtors® reported 4567 sales through the TorontoMLS® system in January 2012. This number was 8.8% higher than the 4199 sales reported in January 2011. Sales growth was strongest for low-rise home types in the regions surrounding the City of Toronto.
Click on the latest issue of Your Cizmar Report to read the rest of the story and to see what the market is doing in New Toronto and Mimico.
5 Quick Tips to Spruce Up and Sell Your Home!
Make your home more appealing for yourself and for potential buyers with these quick and easy tips:
- Trim bushes so they don’t block windows and cut down on light.
- Buy a new doormat.
- Put a pot of bright flowers (or a small evergreen in winter) on your porch.
- Put new doorknobs on your front door.
- Put a fresh coating on your driveway.
Looking for more quick and easy tips you can implement? Sign up for my newsletter on the top right hand side of this page – to be kept in the know!
Buying a Home in Etobicoke?
If you are reading this, it must be because you are thinking of buying or have already decided to buy a home. Even if you have just begun considering to buy, it means you are that much closer to beginning building your future on the foundation of a new home.
Few things are more gratifying and rewarding. Congratulations!
Finding your dream home should be an enjoyable experience. Yet, in today’s busy real estate market there are so many elements to consider when purchasing a home.
The Internet has made searching for a home a very easy and fruitful experience, and my web site can get you started in the right direction, but don’t forget, nothing is ever as it appears on-line, so plan on doing some real-world investigation too.
For most people looking for a home, the best place to start is truly contacting a professional real estate agent such as myself!
• I can take your dreams, desires, needs and focus selection to the properties that fit you, saving you countless hours in the process.
• I am on top of the real estate market and have access to the latest up-to-the-minute listings, so you don’t miss out on a once-in-a-lifetime opportunity.
• I know the local neighborhoods in Etobicoke – New Toronto, Mimico, Long Branch, Alderwood and Eatonville and have networks of clients and referrals. These networks allow me to know about homes that are about to be listed and are not on mls yet.
• I can help you with the mass of paperwork and documentation surrounding home buying.
• I do this everyday and can best prepare you for the process.
And best of all… I won’t cost you a thing if you hire me!
I would be delighted if you chose me for the honor of assisting you, I have been helping make home ownership a reality for many people in Etobicoke and Toronto West for over 15 years! Hopefully you’ve found enough evidence on my web site to justify this choice, if not, please download a copy of my Buyer’s Guide for even more information about buying a home.
Do you have any questions or comments about home ownership? I would love to hear from you.
Etobicoke Real Estate Update!
Happy Leap Year!
That’s right 2012 is a Leap Year! February 29th doesn’t come around that often – but this year it will make an appearance. Every four years, we get an extra day, so in 2012 we will be rounding out the year with 366 days. The extra day, February 29 is the leap day of the leap year.
This year is particularly special. If you look at a 2012 calendar, you will see that February has five Wednesdays. The most recent year in which February comprised of five Wednesdays was in 1984 – it won’t be until 2040 that we’ll see five Wednesday’s again!
Speaking of calendars, did you get your 2012 Calendar? If not, I do have a few extra ones available, just send me an e-mail or give me a call and I can get one out to you right away.
We are in February already! Time seems like it is really flying. We have seen brisk sales in Etobicoke so far this year. It is definitely a seller’s market when there is a low inventory of houses for sale and they are selling in an average of 14 days or less!
If you have been sitting on the fence or thinking about selling, now is really a good time to get ahead of your competition. I find every year more people are thinking about getting their houses for sale and preparing them for a spring market. In my opinion, the best time to sell is when you do the opposite of everyone else. Think about it, if there are no other houses for sale but yours and it is a seller’s market where will the buyer’s focus their attention on? The advantages of putting your house on the market are many if you use this strategy and I would be happy to provide you with a more detailed report outlining the reasons why.
In the meantime, don’t stop those newsletter subscriptions! If you would like to be kept up to date with the Toronto West and Etobicoke Real Estate Market, would like free tips on how to prepare your home for sale or add value to it, you need to subscribe to my monthly newsletter and get on the list! Just visit www.mcizmar.com
Judy did the same thing last month and is our winner of the Staged to Sell contest. Judy receives a copy of “Staged to Sell (or keep)” Easy Ways to Improve the Value of Your Home by Jean Nayer. Congratulations Judy!
Do you have any questions about the real estate market in Toronto West or Etobicoke? Please let me know how I can help you today by posting your question or comment below.
Toronto Real Estate Reports Second Best Year on Record!
Greater Toronto Realtors® reported 4718 transactions through the Toronto mls system in December 2011 as the GTA capped off the second best sales year on record.
Click on the latest issue of Your Cizmar Report to read the rest of the story and to see what the market is doing in New Toronto and Mimico.
Why it’s a good time to buy a home!
Paul Lachine illustration
By Mark Weisleder | Fri Jan 27 2012
I believe there has never been a better time to buy a home. I’ve been in the industry for 28 years as a lawyer and I haven’t seen so many positive signs for housing, whether you are thinking or buying or locking in a mortgage.
Here’s why:
Mortgage rates at historic lows: They can’t get any lower. Four to five-year fixed mortgages at 3 per cent are unheard of. It is lower than the variable rate that most Canadians have been paying for years. Rates have nowhere to go but up, either later this year or next. If you are paying a variable interest rate, lock in now.
Canada’s appeal: This country has everything going for it — a stable banking and political environment, steady real estate market, the natural resources people want and few social tensions. That makes us a safe haven in a volatile world.
Our immigrant draw: Because of the above, we’re a draw for immigrants, often wealthy ones. When they get here, they need a home. So in my view while the real estate market may level off in some areas of Ontario, it should stay strong in most of the GTA and likely Canada’s other large urban centres as well.
Mortgage defaults: According to CMHC, over 99 per cent of Canadians pay their mortgages on time. It quite a different picture in the U.S. where 7 million homes are in foreclosure and perhaps another 7 million homeowners are under water. This represents almost 15 per cent of all homes. So while the American housing market will likely be weak for the next few years, this should not occur in Canada. Our banks are not dumping homes onto the market, so there is no downward pressure on prices.
Also read: 6 ways to ensure you don’t buy the wrong house
Recourse Mortgages: In many U.S. states, if you can’t pay your mortgage, the only thing the bank can do is foreclose; they cannot sue you for any shortfall. So when homes go under water, owners give the keys back to the bank. In Canada, loans are almost all Recourse, meaning if you don’t pay and there is a shortfall, the lender can sue you for the difference. This is another reason why, in my opinion, even if times do get tough, Canadian homeowners will find a way to make the payments until things improve.
Income-to-price ratio: Another misleading statistic is that in major markets, like Toronto, the average price of a home is now 4.6 times the income of the average Canadian. This same statistic was found just before the U.S. and UK markets went into the tank. However, if you look at median incomes of Canadians against the median cost of homes, this average comes down to around 3.5, which is not dangerous. Using averages are wrong. A person receiving social assistance will not buy a home, and should not be included in any relevant statistic.
High consumer debt: The warnings about rising debt ratios must be examined carefully. The Governor of the Bank of Canada is worried that the average personal debt ratio is now 156 per cent in Canada. This means a household making $100,000 per year, owes $156,000, two-thirds of which is mortgage debt. Why is this so bad? At an interest rate of 3 or even 5 per cent, the amount needed to service the debt is manageable. Most people do not pay off their mortgages in one year. Still, this is another good reason to consolidate your debt now, at these low interest rates, and lock in.
No guarantees: Nobody can predict the future and there’s always the possibility of a major economic shock. Yet, in a U.S. presidential election year, politicians will do whatever is necessary to prevent it. If the economy goes into the tank, so do re-election chances. The U.S. is already showing signs of economic recovery.
Also read: 20 things to look for in a home inspection
No matter what, do not take on a monthly payment higher than what you can afford. Meet with your lender or mortgage broker in advance to figure out what you can afford before you start looking for a home. It may be the best time to buy, but you need to buy smart.
Mark Weisleder is a lawyer, columnist, author and speaker to the real estate industry. You can contact Mark at mark@markweisleder.com
Q & A – How do I pay off my mortgage sooner?
Throughout my real estate career, I am often asked a lot of questions from buyers and sellers seeking my advice. You wouldn’t believe it but, I get asked everything under the sun and sometimes not all questions are real estate related! But, I’m here to help in any way I can and I’m happy to answer any question you have for me.
I thought I would take the time to answer some of the more common questions here on my blog. Hopefully it may provide you with some insight and possibly answer a question or two of your own!
Question: Any tips on how to pay off my mortgage sooner?
Answer: The faster you pay down the principal amount of your mortgage, the more you can reduce the interest costs. You can find the exact amount of interest you have been paying on your mortgage by taking a look at your most recent mortgage statement.
If you are looking to change that amount I have the following 5 Tips for you:
- Shorten your amortization period. Instead of your current 25 or 30 year amortization period, shorten it to 15 or 20. Doing so will increase your payment amount but you will be mortgage free sooner and will incur less interest during the duration of the mortgage.
- If you are currently making monthly payments, switch and increase your payment frequency to a weekly or bi-weekly payment schedule. This is one small tip you won’t feel and you will end up making an extra month’s payment every year.
- Increase your payments permanently or temporarily. Did you know some banks or lending institutions will let you increase your regular mortgage payment by 25-50% sometimes even 100! These extra payments go directly towards your mortgage principal!
- Make a lump sum payment if you can. Not everyone can do this but it’s nice to have the option! If you’ve come into a cash bonus lately or expecting an income tax refund, use it. Don’t spend it all. Put even a portion of this towards your mortgage. As long as you have the prepay option you can pay up to 15-20% of your principal mortgage each year!
- Change from a fixed interest rate mortgage to a variable interest rate mortgage. Keep your mortgage payments the same but switching to a variable interest rate mortgage offers you today’s lower rates and allows you to pay off your mortgage sooner by applying more of the payment towards the principal. Think about it, you haven’t changed your current payment amount but you are paying off your mortgage sooner. Now that’s a win-win!
If all of these tips are a little too much for you to handle all at once, try one of them and slowly build from there. You’ll feel good about making some positive changes towards paying down your mortgage sooner and free up some options for you once you have. Then before you know it, you will be looking to upgrade your home to a bigger one or buy that recreational place you’ve been dreaming about!
Do you have a question for me? Send an e-mail to milana@mcizmar.com and let me know how I can assist you today!
Why now is the best time to plan your home improvements!
It’s cold outside! Do you feel like it’s time to hibernate for the winter? Why don’t you take advantage of a little down time and plan out some of your home improvements? Now couldn’t be a better time. You can’t tackle the outside of your home just yet but you can get ideas and finally write out a plan for those projects you’ve been meaning to get to. You know those projects – on your to do list? The ones you’ve been meaning to get to but just haven’t tackled yet.
Your home is a reflection of who you truly are and of those who live there. If you are looking for a little inspiration and not sure where to start, try this:
Take a fresh look at each room with pen and paper in hand and think about ways in which you can update and improve them. ALL updates will provide you with a return on investment when it is time to sell. You cannot go wrong with updates. Just remember to keep them simple without too much fuss and you will always appeal to a broad audience. Even if you are not thinking of selling your home, updating a room can always add fresh appeal, create inspiration and a whole new space for you to enjoy!
Ask yourself some of the following questions to get started with your ideas:
What is the first thing you see when you walk into a room? Do you like it?
What type of mood is created in the room? What type of mood would you like to create?
What is the purpose of the room? I know this one seems obvious but seriously – I have seen bedrooms cluttered with everything from desks, outdated furniture and exercise equipment. Hint: These are the rooms you should tackle and turn into your little oasis when you are thinking of selling your home. These are the rooms future buyers will envision themselves in, so try to create a mood for them and the return on your investment will pay off ten-fold!
Some dream rooms that buyers are looking for today? The dream home office, the gourmet kitchen, a home theatre, spa-like bathrooms and master bedroom retreats.
Simple fixes and updates to any of these rooms include modernizing and replacing items that are completely outdated or broken. These are quick and inexpensive fixes that can completely transform a room. Try modernizing all your light fixtures, putting on a fresh coat of a new paint colour, changing faucets in kitchen and baths, doors and hardware and even updating furniture that you’ve always wanted to.
Looking for more inspiration, tips and tricks for adding value for your home? Get on the list and I’ll have you finishing off your to-do list in no time!
How to purchase a home and include the cost of renovations in the purchase!
How to use CMHC to assist you in buying the house of your dreams and build equity at the same time!
There is a little known program that you could be taking advantage of that can increase the chances of finding a home in this market where bidding wars are the norm and you don’t have the money to buy a “fixer upper”. With a great product out there you now have more flexibility to buy a house that you may have previously overlooked due to the fact the house is in need of some TLC. Whether it is a new kitchen, bathroom, windows, hardwood flooring, etc you have the flexibility to purchase a home and include the cost of renovations in the purchase. This program is ideal for first time buyers who typically have a smaller down payment and can’t afford to put money down on a house and pay for the renovations they desire.
CMHC (Canada Mortgage and Housing) is the government insurer that anyone with less than 20% down payment must pay in order to purchase a home in Canada. They have a program called Purchase Plus Improvements that allows qualified borrowers the ability to borrow up to 10% of the value to pay towards the costs of renovations. Let me give you an example: If the purchase price of a house is $500,000 the clients have the ability to borrow up to an additional $55,000 (10% of the purchase price plus 10%) in order to pay for the costs of renovations. This allows borrowers to not have to eat into their down payment in order to pay for the costs of renovating a home. With a lot of younger first time buyers trying to find creative ways to get into this increasingly expensive market, this allows you the flexibility of looking at homes that need a little TLC and allows you the ability to build some of your own equity by renovating the house. Why pay more for a house that someone else has renovated when you can include the renovation costs in your mortgage loan approval and renovate to make something your own dream home?
How it works is that borrowers must provide a quote from a contractor prior to the closing of the house, which is submitted off to the lender and insurer for approval. You must make sure you have a visit to the house prior to closing written in your purchase contract so that you can have a contractor review the work required and provide you with a quote that breaks down the scope of work and the costs associated with that work.
Once both CMHC and the lender have approved the improvement amounts, the amount is added into the mortgage and on the closing date the amount is advanced to the lawyer to hold onto until the renovations have been completed. That means you don’t get the money until the work has been completed so we recommend that our clients ensure that they have access to an unsecured line of credit available to them so the initial deposits/costs can be paid and work can begin. Once the work has been completed the lender sends an appraiser out to confirm that the scope of work that has been outlined on the quote has been completed and the lender authorizes the lawyer to release the money to you.
So what’s the catch? Borrowers cannot include the costs of appliances in the quotes as they are not part of the actual house and can be taken if you ever decide to sell. From our own experience, CMHC and lenders usually will not approve renovations to do things like add another unit to the property (like a basement apartment) or fix something like a furnace that should be in good working order when you buy the home. So keep that in mind when you are considering the options.
For additional information on your house hunting process or for your FREE copy of my Buyer’s Guide click here
Content written and provided by Jason Friesen of The Calum Ross Team
Toronto Market Watch
Second-Best Year on Record for Sales.
Greater Toronto REALTORS® reported 4,718 transactions through the TorontoMLS® system in December 2011 according to the Toronto Real Estate Board. The December result capped off the second-best year on record under the current Toronto Real Estate Board (TREB) boundaries. Total sales for 2011 amounted to 89,347 – up four per cent in comparison to 2010.
“Low borrowing costs kept Buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said TREB President Richard Silver. “If Buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area,” added Silver.
The average selling price in December was $451,436 – up four per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average of $431,276 in 2010.
“Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer.
