Archive for June, 2009
Canadian Home Values Better Than U.S.
A recent real estate survey reveals that home values in Canada are, on average, higher than in the United States. Cities such as Toronto and Winnipeg, though similar in economy and size to Chicago and Minneapolis/St. Paul, boast much stronger and more stable housing markets.
The results are almost the same for Halifax, though its prices are slightly lower than in its counterpart, Boston.
As of the end of March, prices were significantly higher north of the 49th parallel. For instance, in Toronto, the average housing price fell only four percent to $394,099, while in Chicago, the average price plummeted 34 per cent to US$249,901.
Likewise, Toronto homes were on the market for only about three weeks before being sold, substantially shorter than the Chicago homes’ 168-day (or 24-week) turnover.
In Winnipeg, the average selling price rose three per cent to $209,628, while in Minneapolis the average price fell 24 per cent to US$148,317. In St. Paul, the selling price dropped even further (36 per cent), to US$105,858.
Meanwhile, Halifax continues to buck recent real estate trends, posting a notable seven per cent increase in the average selling price (to $282,499), compared to Boston, which posted a 28 per cent plunge (to US$394,550). However, homes in both cities remained on the market for almost the same number of days.
In the nations’ capitals, prices inched upward one percent in Ottawa, while prices in Washington fell three per cent. It also took more than twice as long to sell a home in Washington.
But things are different for Calgary and its “twin”, Houston.
In Calgary, where the prices are significantly higher and selling times much shorter than in Houston, the Stampede city still posted a hefty 11 per cent price drop compared to its American counterpart. Average home prices in Calgary were $380,737 and US$200,233 in Houston.
Toxic Chinese Drywall in Your Home Can Make You Sick
The use of toxic Chinese drywall in newly-built or renovated homes is turning into the largest environmental crisis to hit the North American real estate industry in recent history.
When exposed to humid conditions, the defective drywall gives off toxic gases like hydrogen sulphide, sulphur dioxide and others. Not only do these gases create a noxious odour (comparable to a rotten egg smell), they also cause health problems such as shortness of breath, eye irritation, fatigue, dizziness, insomnia, sore throat, bloody nose, and headaches.
Along with unpleasant smells, other evidence of the presence of the toxic Chinese drywall in new or renovated homes includes blackened and burnt wiring behind wall plugs and switch plates, and corroded evaporator coils on air conditioning units.
Unfortunately, homes containing defective Chinese drywall cannot be repaired. The only course of action is for them to be completely gutted and rebuilt. Experts in the field estimate that it can take as few as three sheets of the toxic drywall to contaminate an entire home to the point of making it uninhabitable.
Between 2001 and 2008, hundreds of millions of sheets of the toxic drywall were imported to the U.S. During the same time period, about a million square metres were shipped to Canada.
America’s Watchdog, a national advocacy group for consumer protection, is taking an active role in tracking down those responsible for the defective drywall. The president of America’s Watchdog, Thomas Martin, says the crisis is “the worst case of sick houses in U.S. history.”
In April of this year, the Drywall Safety Act was introduced in the United States House of Representatives. If approved, the Act would prompt a recall of all Chinese drywall imported into the U.S. between 2004 and 2007.
Meanwhile, the full extent of Chinese drywall installation in Canadian homes is still under investigation. The Environmental Protection Agency has a 9 page report on Chinese Drywall.
If you suspect your home may contain the defective drywall, contact an environmental engineer or a qualified home inspector.
Looking for no-strings-attached advice about buying or selling in central Toronto? Write to me at rsmithcarr@sympatico.ca or call me at 416-482-8360 ext. 3519
Toronto Real Estate Market Close to Reaching Boiling Point Again
As springtime sales experience an unexpected upswing, parts of the Toronto market go from famine to frenzy. Even bidding wars have returned, to the joy of sellers and annoyance of buyers.
In the first two weeks of May, housing sales in the Greater Toronto Area (GTA) were in positive territory for the first time since the market’s tailspin last fall, chalking up a healthy 3 per cent increase over the same period last year.
Housing analyst and economist, Will Dunning, explains that the current mini-boom is what he calls a return to reality of sorts. “Buyers have returned to the market with the realization that apart from manufacturing and construction, the GTA economy is holding up well.”
Indeed, the Toronto real estate market has been more than encouraging of late. A lack of homes on the market and record-low mortgage rates have lured buyers back into the game.
And game they are. In May 2009 in Davisville Village and Leaside, 41 per cent of homes in the 500,000 to 950,000 range sold for the full asking price or above, while a property on the Danforth listed for $549,000 sold for $715,000, or 130 per cent of the asking price.
However, despite these promising signs, some analysts are already warning the mini-boom won’t last and that average existing home prices will drop 5 per cent by the end of the year. And while consumer confidence is buoyed by the more positive economic news, the seas ahead could be choppy.
Once again, the word here is caution. Dunning tempers his enthusiasm over the mini-boom by looking ahead at the long-term implications. “Improved affordability generally results in a short-lived wave of buying. So we may see several good months, but there could be another slowing in the second half of the year. I remain skeptical.”
High demand for housing has already caused a rise in mortgage rates. We are well advised not to experience a second round of Irrational Exuberance, as the title of Robert Shiller’s book so aptly describes it.
Unsure as to what to do in this real estate market? Simply send me an email, or call me: Rosalin Smith-Carr, at my direct line (416) 482-8330 ext. 3519
Survey: Royal LePage Real Estate in the Top Ten Real Estate Companies in North America
Real Trends 500 (or RT500) is the real estate version of Fortune 500. It appears annually and measures the performance of the top 500 most successful residential real estate brokerages in the U.S.
In a recent comparison, Royal LePage Real Estate Services Ltd., including Johnston & Daniel Division, was measured against similarly-sized American companies on the 2009 RT500 list.
In comparable dollar-volume closed sales, Royal Lepage ranked 9th out of 500 firms (or in the top 2 percent), and 22nd overall in closed transaction sides, known as “ends”. Such impressive standings testify to Royal Lepage’s ongoing strength in the real estate market.
In Canada, Royal Lepage remains the #1 brokerage firm in dollar volume, thanks in large part to the success of its Johnston & Daniel Division. Royal Lepage is both the largest and the oldest real estate company in the country, launched in 1913 by Albert Lepage and today boasting more than 14,000 agents.
Over the years, we’ve learned a lot about real estate. Since the mid-1990’s, in response to expanding market conditions, Royal Lepage tripled the size of its sales team and almost doubled its market share.
Today, Royal Lepage offers its sales and services in over 600 cities and towns all across Canada, so wherever you want to live, you’ll find a Royal LePage agent ready to serve you. In addition, we are always updating, streamlining and adding to our services to help our clients realize their dreams faster and easier.
In our steady rise to the top, we have never forgotten our roots: Royal Lepage remains proudly and steadfastly Canadian. We also remain dedicated to helping our clients through the real estate process, from start to finish.
Our commitment to innovation and customer service is as strong as ever and has provided the solid and enduring cornerstone to our success.
Looking for no-strings-attached advice about buying or selling in central Toronto? Write to me at rsmithcarr@sympatico.ca or call me at 416-482-8360 ext. 3519
Woman Uses Children to Steal Valuables at Open House
I have never been fond of doing open houses because the person who benefits most is your agent, not you the seller. And now I have that much less incentive to do them. A 36-year-old woman was arrested recently in connection with thefts at seven open houses in the Toronto area. But even more appalling than the thefts themselves was the woman’s modus operandi.
She would arrive at the open houses with a fashionably large black purse and two cute little boys. The younger boy, around eight, would cling to the woman as she toured the house.
Meanwhile, the older boy, around ten, would linger in a particular area with the realtor, making the kind of charming small-talk any ten-year-old might make.
But while the boy was keeping the agent’s attention fixed on baseball and the latest Disney movie, the woman was beyond viewing range, stuffing digital cameras, Wii video-game consoles, jewellery and even cash into her purse, as reported in the Toronto Star.
In one instance, the two boys started screaming and running around. The woman explained to the startled realtor that they were terrified of cats (there was a small tabby at the home) and the agent did what he could to calm them down.
While he was tending to the children, the woman stashed over $1,000 worth of items into her bag.
Peel police, who are investigating several of the thefts, admitted yesterday they’d never heard before of someone using children to steal at open houses. They also warned that there are likely home owners who have had open houses and haven’t yet noticed that things are missing.
The truth is – open houses are good for agents but not necessarily for sellers. Less than one percent of buyers find their home by visiting an open house. The majority of attendees show up either out of curiosity or to kill time. And some, apparently, show up just to steal.
So, if you do decide to hold an open house, make sure you put away (or better still, lock up) your valuables. And keep an eye on anyone who arrives with a fashionably large purse!