Archive for the 'Toronto Real Estate' Category
When is the Best Time to Buy a Home in Toronto?
Spring real estate market is a very busy time. In the Spring every would-be home seller has a for sale sign on their freshly trimmed lawn, real estate agents buzz in the busiest time of the year and homebuyers come out of the winter hibernation. Everyone wants a deal, everyone wants to sell and the market is flooded with a fresh inventory of homes to sell. More homes are up for sale or sold during the Spring time than any other period of the year.
Spring is also the worst time to buy a home. Why? Because while there is more selection, there’s also more competition from other buyers. Spirits are up and people are willing to bid and pay extra. (Which means Spring is technically the best time to SELL your home, but first you should determine what your Toronto home is worth.
In contrast Summer is a slow time of year. Too many people go on vacation and home selling or buying isn’t a priority. The slow season is actually better for homebuyers because there is less competition and you’re more likely to have your offer accepted… especially if the sellers listed their home in the Spring and have yet to receive an offer. The sellers have become tired and are more willing to accept a lower price for their home.
The best day of the year however is not in the Summer. It’s actually Christmas Day. There are advantages to buying a house on Christmas Day.
1. Almost nobody looks at homes on Christmas Day. There is zero competition.
2. People on Christmas Day are usually in a good mood, celebrating and enjoying time with their family.
3. People are more inclined to be generous, lowering their price.
4. If they’re trying to sell their home during the Christmas season they’re serious about selling.
Of course if you can’t wait until Christmas there is no time like the present. You could start now by getting home listings by email or searching local real estate listings in Toronto in the comfort of your home.
Toronto Bidding Wars Moving from Houses to Two-Bedroom Apartments
As the Bank of Canada continues to raise interest rates with the improving economy, more homeowners
are selling their properties, but instead of buying a new home they are renting, driving up the cost of
renting in major cities. With the real estate market cooling and the cost of mortgages expected to climb
as interest rates go up these owners are sitting on their cash and hoping housing prices will cool down
enough for them to buy a house at a discounted rate.
Susan Isenstein and husband Norman sold their Toronto home 24 hours after it was put on the market
last month. They were looking for a home with fewer stairs, but have been having difficulty finding
something in their price range. “So you can’t find what you like, and then there’s the concern about
whether or not prices are going to go down,” says Susan.
Such homeowners who cashed out at the peak of the real estate market are aiming to put their money in
the bank rather than investing in a house. As a result there are a whole slew of new renters looking for a
good place to rent and they are engaging in bidding wars to snap up rentals that are comparable to the
properties they just sold. This is putting pressure on the supply of houses for rent in major cities.
The vacancy rate in Toronto is 2.2%, 2.7% in Vancouver, two of the lowest in Canada.
If house prices fall 10% in the next year, a possibility cited by both TD Bank and CIBC World Market
economists, a $700,000 house in Davisville Village or Leaside could be worth a mere $630,000 a year or
two from now (Find out how much your Toronto home is worth). Some homeowners apparently
think that is worth the gamble of selling their current home, renting in the meantime and then trying
to buy a comparable property in the same neighbourhood two years from now when the market has
cooled down.
But it’s a gamble. The high demand in the Toronto real estate market could just as easily drive housing
prices up instead of down. In such a big city there are so many ways to find a new home… word-of-mouth, craigslist,
search listings, you can get home listings sent to you by email, real estate agents, or just driving
around in neighbourhoods that you like and looking for “for sale” signs. So what can we make of all these changes? As someone so wisely said, “the only constant is change”.
See Also:
Are Toronto Housing Prices Up or Down?
Have You Had Enough Fear-Mongering?
Why Retiring Baby Boomers Hold The Key to The Future of Housing
Toronto Real Estate Broker Jailed for Failing to Deposit Client’s Money
David Seto, the owner of ReMax Executive Realty was sentenced to one year in jail for failing to deposit client’s money into a trust account.
According to testimony heard in court, more than half a million dollars in home buyers’ and agents’ money was unaccounted for.
“These were very serious matters,” said Robert Lewin of the Ontario Court of Justice. “This was a large amount of money lost to people who were trying to close real estate transactions.”
Seto pleaded guilty to eight counts of failing to comply with the Real Estate and Business Brokers Act. His lawyer said that Mr. Seto was a victim of the economic downturn, when real estate sales started to fall in 2008. Instead, Mr. Seto put the money into the general accounts of Executive Realty. His company was also fined a total of $200,000.
The lawyer argued that his client didn’t profit from this. He didn’t run away with the money or put it in a foreign bank. “He and his wife are virtually wiped out”.
After receiving an anonymous complaint in January 2009 the Real Estate Council of Ontario (RECO), the regulatory body for realtors in the province, decided to investigate, according to an agreed statement of facts. RECO requires all deposit monies from house buyers who have purchased a home, to be placed in a trust account. Seto was also under emotional stress because his wife was suffering from cancer and he had to mortgage their home twice to keep the company going, he told the court.
Seto’s lawyer asked the court for leniency, but prosecutor Tim Snell, legal counsel for the Real Estate Council of Ontario, requested jail time as a “deterrent” to others who may contemplate doing the same thing.
Want to know what’s happening in the Toronto real estate market? Send us an email.
Toronto Real Estate Market Charts January 2010
The Toronto Real Estate Board has published the January 2010 housing charts for the Greater Toronto area resale market.
Sellers have the upper hand in this market because of low numbers of homes for sale.
Buyer demand, fueled by both low interest rates and a scarcity of homes, could continue to cause home prices to increase in Central and Downtown Toronto.
Central Toronto Has More Home Buyers Than Sellers
We are enjoying our mildest Winter in a long time, we have seriously low mortgage rates, a very healthy Sellers’ market, and yet……where have all the Sellers gone?
Traditionally, Sellers are not enthused about having their home for sale in the frigid winter winds. Why are they not delighted to take advantage of the lack of snow and take advantage of those more-than-eager Buyers right now?
More important than the weather to Buyers is the availability of super-low mortgage rates. This is why they are most eager to find their new home right now.
We are constantly being reminded that these low mortgage rates are unsustainable. So why wait until this happens? Those Sellers who decide to get ahead of this will reap the benefit. It’s an obvious case of “supply and demand”.
I’d be happy to give you an accurate opinion of what your home is worth.
Drop me an email at rsmithcarr@sympatico.ca or call me at 416-482-8330 ext 3519
How Home Buyers Can Get All the Home Information They Want and Not Be Hounded by Real Estate Agents
Like any consumer, I hate it when salespeople hound me.
At the same time, I’m also aware that real estate agents have a reputation for chasing clients. Nonetheless, there is a fine but legitimate line between hounding and going on a successful hunt.
Let me explain. Let’s say you’ve hired me to sell your home. Your circumstances are such that it must be sold within 45 days or you may find yourself in a very difficult position.
My job is to shift into high gear and find your buyer as soon as possible. This means:
- Following up with every agent who has either viewed or taken a potential buyer through your home
- Staying in touch will all potential buyers I’ve sourced myself
But here’s where the hunt can get somewhat hound-like. Because of your time-crunch situation, I can’t afford just to sit back and wait for buyers to contact me. So, I’ll call (and, sometimes, call and call), email, or even drop by to firm up a definitive “yes” or a “no”. After all, this is my job and what you are paying me to do.
Few sellers (or buyers, for that matter) would prefer I sit back and wait for the buyers to come to me. Most sellers under time-pressure expect an agent to be pro-active, even if it means coming dangerously close to hounding.
So, how do you as a buyer (or seller) get information from an agent while at the same time preventing the agent from becoming a nuisance?
As a consumer, here’s what I would do: Tell the agent from the get-go that you are just starting your search, and to please respect your wishes, especially those regarding further contact. You will find that most will.
However, if the agent disregards your request and steps over that fine line, I’d tell them you are going to report them to the Real Estate Council of Ontario (RECO), which is the real estate’s agents’ policing body.
And if that doesn’t work – you will send in the hounds!
Renovation Leads to Separation – Staying Together After All the Work is Done
If you’re thinking about moving ahead with a home remodelling project, the following are some factors to consider. This is tried and true advice gleaned from over 25 years of consulting with clients in Toronto on home buying, moving, selling and renovating. It will not only save you financially, but emotionally as well. Speaking of emotions . . .
Toronto Home Remodelling: Can Your Family Afford the Emotional Cost?
There is an old idiomatic expression in the real estate industry that goes, “Renovation leads to separation.” This is especially true if the family inhabits the home while the renovation is taking place. Noise, dust, cramped quarters and dealing with unreliable contractors take a huge toll on even the most stable relationship.
This is added stress on top of professional responsibilities, child rearing and other day-to-day pressures. This is why I have always found that the most important factor to consider when deciding whether or not to renovate is not the financial cost, but the emotional cost.
After all, what good is a newly renovated home when there is no family left intact to enjoy it?
Toronto Home Remodelling: When It Makes Sense to Move Forward
If your family is prepared to weather the emotional toll, following is when it makes sense to move forward with a home remodelling project.
You Love Your Home: This is probably the best reason. If you love the basic bones of your house, its location, and the feel of the neighbourhood, then remodelling makes sense – if it’s within reason (which we’ll discuss in just a bit).
The Costs are in Line with the Neighbourhood: You can easily spend too much on a home renovation project. Following are two questions to ask that will help you keep costs in line with your desires.
The first question you need to ask – and answer – before proceeding is, “Does it make sense to spend this amount of money, on this home, in this area?” You want to be able to answer “yes” emphatically. The second question is, “When all the work is done, will my home be the most expensive home on the street?” The answer to this question should be “no.”
The reason is, any improvements you make should be those that a future buyer will be willing to pay for.
Remember, potential homebuyers pay relative to what other homes in that vicinity have sold for. So no matter how much that slate tile in the master bath costs or how great it looks, if it puts your home in the “most expensive” category, it’s unlikely you’ll recoup what you spent.
Read the rest of this article »
Toronto Home Bidding Wars Are Back – Here's How to Make Sure You Win
I stopped to fill up my car at a gas station recently. While I waited for the salesperson to process my bill, I asked her how cigarette sales were going. I’m not a smoker but was curious to see how the new law banning the display of cigarettes in Ontario had affected sales. Without a moment’s hesitation she said, “Actually, sales have doubled.”
This caught me by surprise and I inquired further, asking her if she knew why this was so. She replied, “It seems that people want what they cannot have.”
Her answer reminded me of a similar situation that affects home buyers in some high-demand areas in Toronto. Often, I encounter prospective buyers who decide not to proceed with a purchase simply because no one else has made an offer.
What many of these future homeowners are in essence saying is, “I will buy that house when I know somebody else wants to buy it too.” Of course, this is not what they say out loud, but it is exactly what their actions say.
How to Win the New and Revived Home Bidding Wars in Toronto
If you find yourself in a home bidding war in Toronto, don’t panic. You can win at this game. Following are some tips for doing so.
Offer High:
Make the highest offer you can afford. This is no time to try and low-ball.
Get Your Documentation in Order: This will help to ensure a speedy sale, which can be the difference between you and another home bidder.
Do not include unnecessary conditions:
Make it as easy as possible for the seller to say yes. Note: Don’t waive a home inspection, which will be discussed in just a bit. You want to make your offer attractive, but not at the expense of doing your due diligence as a home buyer.
If at all possible have the home inspection done before you make an offer. The only downside is the small cost of your inspection in the event your offer is not accepted.
The bottom line is, if the home you are considering buying meets most of your criteria regarding location, price and amenities in Toronto, then don’t wait for another buyer to outbid you. What this means is that if the condition of the home is unsatisfactory, you can still walk away and get your deposit money back.
Success in buying a great home in prime Toronto neighbourhoods comes to those who act independently — and who brave home bidding wars secure in the knowledge that they haven’t followed the crowd.
Warning! Why Building That Large Home May Be Dangerous to Your Wallet
While the title of this article may sound a bit dramatic, it is intended to catch your attention to discuss why building a large house may not be the best financial move you can make.
Weighing Today’s Large Home Needs in Prime Toronto Neighbourhoods against Tomorrow’s Finances
Chances are, you’re planning to have that four or five-bedroom home built because your family is growing. This is perfectly logical.
HOWEVER, as anyone who has children knows, they grow up and move out quicker than you ever imagine. Then, what you’re left with is a house that is too big for just the two of you.
Why Large Homes in Prime Toronto Neighbourhoods May Be Harder to Sell Than You Think
“So,” you may be thinking, “I’ll just downsize. I’ll sell my house and move to a smaller home or perhaps a condominium.” But, this may not work out the way you think. There are several factors at play that will conspire to drag down the value of large homes in the future, making them harder to sell. Specifically:
Retiring Baby Boomers: Since the late seventies, baby boomers have been the driving force in the housing market. And, with millions of them in the U.S. and Canada set to retire, the housing market is set to change dramatically. This group will be downsizing to smaller dwellings – not larger ones.
The New Homebuyers: Young adults will make up the bulk of new demand for housing. And with the shift towards a greener economy and environment, efficiency, lower maintenance and lower taxes are their priorities – not massive amounts of space.
Immigration: Immigration to Canada has slowed considerably, especially to cities like Vancouver. This is important to know because the first wave of immigrants tends not to be homebuyers. They struggle and sacrifice in order to give their children a better life. And many of them succeed, producing a second generation who has the buying power to afford larger, more expensive homes in prime Toronto neighbourhoods.
If the predictions for lower housing demand by population experts such as Boom, Bust and Echo author David Foot unfold, you may find yourself owning the home equivalent of a gas-guzzling SUV.
On the other hand, if your financial situation is such that money is no object, then by all means go ahead and build your large home in a prime Toronto neighbourhood – and live happily ever after in your Casa Loma!
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