- After much debate for months and months, here is the new Toronto Land Transfer Tax that was just passed by Council on 22 October 2007 and takes effect on 1 February 2008. Transactions entered into prior to the end of the year will be fully exempt whenever they close. For the first two months of the year, the deals must close before February 1st 2008. After that, the full tax applies.
The new tax is an addition to the existing land transfer tax. The extra tax is payable on residential and commercial property purchases, including vacant land.
So how will this affect the real estate market in Toronto an surrounding areas?
EXISTING Ontario Land Transfer Tax:
Land transfer taxes are levied on properties that are changing hands, are the responsibility of the purchaser. Current tax rates (effective from June 1, 1989)
0.5% of the value of consideration for the transfer up to and including $55,000,
1% of the value of the consideration which exceeds $55,000 up to and including $250,000, and
1.5% of the value of the consideration which exceeds $250,000, and
2% of the amount by which the value of the consideration exceeds $400,000 for land that contains at least one and not more than two single family residences.
ADDITIONAL NEW Land Transfer Tax :
New tax rates (on purchase agreements signed after Dec 31, 2007 and close after Feb 1, 2008).
0.5% on first $55,000,
1% on next $345,000, and
2% on portion over $400,000
Examples of new Land Transfer Tax ($)
Home Price Ontario LTT Toronto LTT Total LTT
250,000 2,225 2,225 4,450
350,000 3,725 3,225 6,950
450,000 5,475 4,725 10,200
500,000 6,475 5,725 12,200
For first time purchasers:
A rebate of up to $3,725 will apply to first-time purchasers of both new and existing homes. This means a full rebate for first-time buyers of homes valued at $400,000 or less. For example, a first-time purchaser of a home valued at $600,000 would pay land transfer tax according to the scale shown above, and receive a rebate of $3,725. A first time home buyer of a home valued at $300,000 would get a full rebate on the land transfer tax.
Why Toronto imposed new land transfer tax?
City of Toronto’s projected revenue shortfall for 2008 budget is approximately $415 million. The city will be able to raise additional $155 million by Land Transfer tax and another $20 million by the new Toronto Vehicle ownership tax. That means a revenue shortfall of perhaps $239 million for next year’s budget. This may translate into new taxes on property, alcohol, road tolls, entertainment, parking, billboards, etc.
Toronto is the ONLY jurisdiction with two home buying taxes, highest land transfer taxes in Canada and the second highest in North America.
What may happen now?
A second land transfer tax (LTT) on top of current provincial LTT, is almost 100% increase which might slow down real estate activity for short period of time only.
Home buyers will have less money for down payment, furniture, appliances or renovations. This could ultimately cost over $15,000 for an average buyer when coupled with other real estate closing costs and goods that follow home’s purchase. First-time buyers will not get affected as they will NOT pay the City’s new land transfer tax on first $400,000 of their property’s price.
Since there is no new local home buying tax in 905 region, more buyers and investors will move out of Toronto. Real estate markets outside Toronto will grow more as many investors and buyers will move into Mississauga, Oakville, Milton, Brampton, Markham, Richmond Hill, Ajax and Pickering.
Borrowed fromt he Canadian Real Estate newsletter www.newsportrealtor.com
Residential Real Estate Sales. Listing-Buying, Renovating, Additions, Custom New Build.
Tuesday, 20 November 2007
Monday, 12 November 2007
'Buying a lifestyle'; Toronto neighbourhoods are becoming branded, and part of the brand is defined by local retailers
'Buying a lifestyle'; Toronto neighbourhoods are becoming branded, and part of the
brand is defined by local retailers
National Post
Mon 01 Oct 2007
Page: A14
Section: Toronto
Byline: Garry Marr
Source: National Post
Toronto's real estate market has been on an 11-year tear, and continues to set new records
every month. The boom has dramatically transformed the city's skyline and
neighbourhoods, and changed the way many of us live. Today, Garry Marr on what
makes a neighbourhood hot.
---
If you own a house in one of Toronto's "in'' neighbourhoods, the last thing you want to
see is Bruce Elliot packing up one of his company's stores.
Mr. Elliot, the president of The Second Cup Ltd., says it happens rarely, but it will "if the
retail mix or the neighbourhood has changed. It's not good [for the neighbourhood] if we
leave."
Chi-chi coffee operators need a critical mix of high density and high incomes; retail
specialists say Second Cup and Starbucks want to see household income of at least
$90,000. "If you are a premium brand, you are looking for high household income, that is
a key driver," Mr. Elliot said.
This relationship, however, goes two ways: Buyers want to be where the premium brands
are. A neighbourhood's retailers have become so important that some agents have taken
to putting the names of the local businesses in their real estate listings, said Michael
Polzler, executive vice-president of Re/ Max Ontario-Atlantic Canada.
"People love the idea of popping into a Pusateri's in the area and buying some superexpensive
freshly squeezed orange juice. They want something they can walk to or have
a short drive to," he said. "[The local stores] play a significant role in where people want
to live."
Toronto areas have become branded, and part of the brand is defined by the shops, he
said: "People will ask where do you live: The Beach, Bloor West Village, The
Kingsway? The name of your area is synonymous with the car you drive and the stores in
your area."
Kimberley Kofman, a communications specialist, said she was more than a little excited
there was a Starbucks down the street from the house she bought in the Yonge and
Lawrence area, although it was not the deciding factor.
"The shops are an added bonus. We've got everything where we live; there's a butcher
shop, a small grocery store. You can walk to pick up anything. We have only one car, so
it's important to be able to walk to everything," Ms. Kofman said. "We like that there's a
mix of different restaurants in the area."
Rick Pennycooke's Lakeshore Group is one of the firms companies such as Second Cup
hire to scout out what the next big area will be. He said the chains will make a call on
what the next great neighbourhood will be, but for the most part real estate prices have
already begun to rise by the time the Second Cups and Starbucks come through.
"They'll look at an area and ask whether there is potential for growth. The way to do that
is to consider [zoning] applications in the area. Those take two or three years to go
through the system, so you can see what is coming down the pipe," he said. Starbucks,
said Mr. Pennycooke, wants ''a young professional from about 22 to 45 years old. That's
their core audience."
While Starbucks, Second Cup and Timothy's covet the high-end consumer, a Tim
Horton's in your neighbourhood is no sign to panic.
"They don't just service lower-income people. There are some people who are just rabidly
Tim's, regardless of income class," Mr. Pennycooke said.
Mr. Elliot said his chain is discerning on placement of a $350,000 franchise. While he
loves his 360 Second Cup stores, he is not so sure they add value to property in the area.
If anything, he thinks the presence of the high-end chain comes a bit after the fact.
And it does not have to be chains. Sometimes unbranded trendy stores in a
neighbourhood will drive housing sales. "It's the cheese boutique," Mr. Polzler said. You
don't want to see rundown diners in your neighbourhood, he added.
Take a drive along the Danforth/ Bloor corridor and you can witness the ebb and flow of
retail and how it matches the accompanying housing. "Go further east and it ain't so great,
but then you get to Greektown, then Yorkville, then it's Bathurst and then it falls off a
little. It's OK but not so great. Then you hit Bloor West Village and you're at a trendy
area," said Mr. Polzler, adding that's where the housing prices climb again.
It has almost become a game for areas to try to reinvent themselves as the place to be to
attract homeowners and retail chains.
"The Junction was lost in times for years [but] not anymore," Mr. Polzler said. "The
Junction was able to do it because people wanted to live in Bloor West but couldn't afford
to. They realized they could get the same house a little bit further north. Then the retailers
get together and they'll brand the area with signs. The Junction has that, there are signs
everywhere."
Then there's what are called "tag-along neighbourhoods" such as the North Beach or the
North Annex. "It means so much to define your neighbourhood," and that means
something to retailers, Mr. Polzler said.
"People who live in the city are buying a lifestyle and purchasing that lifestyle means
they are purchasing everything that is around them. It's a badge of honour to walk around
with your expensive coffee."
That's why it's just a bit disconcerting to see a low-end coffee shop come into your
neighbourhood or, worst yet, a cheque-cashing chain.
"Those [stores] brand a neighbourhood, too. I can tell you something about Rosedale.
The only cheque-cashing service you'll see in Rosedale is the Royal Bank of Canada."
gmarr@nationalpost.com
THE NEXT HOT AREAS:
Six next hot areas coveted by retailers, as chosen by Lakeshore Group:
1. The motel strip area of South Etobicoke along Lakeshore between the Humber River
and Fleeceline Road.
2. Queen Street West between Shaw and Dufferin (near the Drake Hotel and the CAMH
redevelopment area).
3. The Town of Milton on the east side along Derry Road between Thompson and James
Snow Parkway.
4. Sheppard Avenue between Bayview and Leslie (around the area of the former
Canadian Tire site that is being redeveloped).
5. King Street West between Shaw and Dufferin. Starbucks just went in last month at the
DNA condo building. The area will likely see another Starbucks or Second Cup-type
retailer in the next year.
6. The Town of Bracebridge in Muskoka.
Illustration:
• Black & White Photo: Tyler Anderson, National Post / A neighbourhood's retailers have
become so important that some agents are putting the names of the local businesses in
their real estate listings, says Michael Polzler, executive vice-president of Re/Max
Ontario-Atlantic Canada.
• Black & White Photo: Tyler Anderson, National Post / King Street West between Shaw
and Dufferin will likely see another Starbucks or Second Cup-type retailer next year.
Idnumber: 200710010024
Edition: Toronto
Story Type: Business
Length: 1081 words
brand is defined by local retailers
National Post
Mon 01 Oct 2007
Page: A14
Section: Toronto
Byline: Garry Marr
Source: National Post
Toronto's real estate market has been on an 11-year tear, and continues to set new records
every month. The boom has dramatically transformed the city's skyline and
neighbourhoods, and changed the way many of us live. Today, Garry Marr on what
makes a neighbourhood hot.
---
If you own a house in one of Toronto's "in'' neighbourhoods, the last thing you want to
see is Bruce Elliot packing up one of his company's stores.
Mr. Elliot, the president of The Second Cup Ltd., says it happens rarely, but it will "if the
retail mix or the neighbourhood has changed. It's not good [for the neighbourhood] if we
leave."
Chi-chi coffee operators need a critical mix of high density and high incomes; retail
specialists say Second Cup and Starbucks want to see household income of at least
$90,000. "If you are a premium brand, you are looking for high household income, that is
a key driver," Mr. Elliot said.
This relationship, however, goes two ways: Buyers want to be where the premium brands
are. A neighbourhood's retailers have become so important that some agents have taken
to putting the names of the local businesses in their real estate listings, said Michael
Polzler, executive vice-president of Re/ Max Ontario-Atlantic Canada.
"People love the idea of popping into a Pusateri's in the area and buying some superexpensive
freshly squeezed orange juice. They want something they can walk to or have
a short drive to," he said. "[The local stores] play a significant role in where people want
to live."
Toronto areas have become branded, and part of the brand is defined by the shops, he
said: "People will ask where do you live: The Beach, Bloor West Village, The
Kingsway? The name of your area is synonymous with the car you drive and the stores in
your area."
Kimberley Kofman, a communications specialist, said she was more than a little excited
there was a Starbucks down the street from the house she bought in the Yonge and
Lawrence area, although it was not the deciding factor.
"The shops are an added bonus. We've got everything where we live; there's a butcher
shop, a small grocery store. You can walk to pick up anything. We have only one car, so
it's important to be able to walk to everything," Ms. Kofman said. "We like that there's a
mix of different restaurants in the area."
Rick Pennycooke's Lakeshore Group is one of the firms companies such as Second Cup
hire to scout out what the next big area will be. He said the chains will make a call on
what the next great neighbourhood will be, but for the most part real estate prices have
already begun to rise by the time the Second Cups and Starbucks come through.
"They'll look at an area and ask whether there is potential for growth. The way to do that
is to consider [zoning] applications in the area. Those take two or three years to go
through the system, so you can see what is coming down the pipe," he said. Starbucks,
said Mr. Pennycooke, wants ''a young professional from about 22 to 45 years old. That's
their core audience."
While Starbucks, Second Cup and Timothy's covet the high-end consumer, a Tim
Horton's in your neighbourhood is no sign to panic.
"They don't just service lower-income people. There are some people who are just rabidly
Tim's, regardless of income class," Mr. Pennycooke said.
Mr. Elliot said his chain is discerning on placement of a $350,000 franchise. While he
loves his 360 Second Cup stores, he is not so sure they add value to property in the area.
If anything, he thinks the presence of the high-end chain comes a bit after the fact.
And it does not have to be chains. Sometimes unbranded trendy stores in a
neighbourhood will drive housing sales. "It's the cheese boutique," Mr. Polzler said. You
don't want to see rundown diners in your neighbourhood, he added.
Take a drive along the Danforth/ Bloor corridor and you can witness the ebb and flow of
retail and how it matches the accompanying housing. "Go further east and it ain't so great,
but then you get to Greektown, then Yorkville, then it's Bathurst and then it falls off a
little. It's OK but not so great. Then you hit Bloor West Village and you're at a trendy
area," said Mr. Polzler, adding that's where the housing prices climb again.
It has almost become a game for areas to try to reinvent themselves as the place to be to
attract homeowners and retail chains.
"The Junction was lost in times for years [but] not anymore," Mr. Polzler said. "The
Junction was able to do it because people wanted to live in Bloor West but couldn't afford
to. They realized they could get the same house a little bit further north. Then the retailers
get together and they'll brand the area with signs. The Junction has that, there are signs
everywhere."
Then there's what are called "tag-along neighbourhoods" such as the North Beach or the
North Annex. "It means so much to define your neighbourhood," and that means
something to retailers, Mr. Polzler said.
"People who live in the city are buying a lifestyle and purchasing that lifestyle means
they are purchasing everything that is around them. It's a badge of honour to walk around
with your expensive coffee."
That's why it's just a bit disconcerting to see a low-end coffee shop come into your
neighbourhood or, worst yet, a cheque-cashing chain.
"Those [stores] brand a neighbourhood, too. I can tell you something about Rosedale.
The only cheque-cashing service you'll see in Rosedale is the Royal Bank of Canada."
gmarr@nationalpost.com
THE NEXT HOT AREAS:
Six next hot areas coveted by retailers, as chosen by Lakeshore Group:
1. The motel strip area of South Etobicoke along Lakeshore between the Humber River
and Fleeceline Road.
2. Queen Street West between Shaw and Dufferin (near the Drake Hotel and the CAMH
redevelopment area).
3. The Town of Milton on the east side along Derry Road between Thompson and James
Snow Parkway.
4. Sheppard Avenue between Bayview and Leslie (around the area of the former
Canadian Tire site that is being redeveloped).
5. King Street West between Shaw and Dufferin. Starbucks just went in last month at the
DNA condo building. The area will likely see another Starbucks or Second Cup-type
retailer in the next year.
6. The Town of Bracebridge in Muskoka.
Illustration:
• Black & White Photo: Tyler Anderson, National Post / A neighbourhood's retailers have
become so important that some agents are putting the names of the local businesses in
their real estate listings, says Michael Polzler, executive vice-president of Re/Max
Ontario-Atlantic Canada.
• Black & White Photo: Tyler Anderson, National Post / King Street West between Shaw
and Dufferin will likely see another Starbucks or Second Cup-type retailer next year.
Idnumber: 200710010024
Edition: Toronto
Story Type: Business
Length: 1081 words
Wednesday, 31 October 2007
2007 Fall Federal Economic Update
2007 FEDERAL FALL ECONOMIC & FISCAL UPDATE
Special Report
October 31, 2007
October 31, 2007
HIGHLIGHTS
• Focus shifts back to tax relief measures
• After adjusting for new measures, surplus projection
below private sector forecasts
• Expected but regrettable cut to the GST
• Slight personal income tax relief
• Significant but back-end loaded move on corporate
income taxes
• Further major tax relief in next Budget unlikely
but not inconceivable
• Focus shifts back to tax relief measures
• After adjusting for new measures, surplus projection
below private sector forecasts
• Expected but regrettable cut to the GST
• Slight personal income tax relief
• Significant but back-end loaded move on corporate
income taxes
• Further major tax relief in next Budget unlikely
but not inconceivable
Monday, 8 October 2007
Lenders offer green-home mortgages; Lower interest rates for
Kosta Hatzidimitriou was happy when he stumbled upon a green mortgage for his recent purchase of a
three-bedroom single-family home.
"The wife and I are trying to get more environmentally conscious and energy efficient," he said.
"Personally, I think it's about time the banks got involved (in enviro-friendly products) because
everybody else is."
His new Citizens Bank of Canada mortgage included a $10,000 line of credit at prime for energyefficient
upgrades and a blue recycling bin filled with $875-worth of information and coupons, including
a $375 home energy audit to help determine what improvements can be made to his 18-year-old
Toronto-area home.
"It's interesting to find out a bank is doing this instead of some government agency," Hatzidimitriou
said. "I like that."
Banks and credit unions are starting to offer what they call green mortgages and green loans for
energy-efficient improvements, and plan to roll out new products and improvements this fall and into
next spring.
Citizens Bank began offering green mortgages last April in Ontario and will expand them to other
provinces by next spring, said John Filice, director of residential mortgages.
Ontario-based Alterna Savings started last spring to offer green loans of up to $100,000 at preferential
rates for energy efficient retrofits, said Carl Wills, Alterna's credit product manager.
And B.C.'s Vancity Credit Union (which wholly owns Citizens Bank) has been involved for many years
in financing green and sustainable commercial properties, and now offers a climate-change mortgage.
Vancity doesn't advertise this mortgage; instead it takes the money usually spent acquiring mortgage
business -- $1,250 per mortgage -- and invests it in a climate change fund.
Even some of the bigger banks are examining green possibilities.
"We are very seriously looking at this," said Kelly Hechler, spokesperson for TD Canada Trust. "We
know there's interest out there. We've seen it in polls we've done of homeowners who say it's
becoming an important thing to them."
The Edmonton Journal
Tue 04 Sep 2007
Page: A5
Section: News
Byline: Kathryn Young
Source: CanWest News Service
three-bedroom single-family home.
"The wife and I are trying to get more environmentally conscious and energy efficient," he said.
"Personally, I think it's about time the banks got involved (in enviro-friendly products) because
everybody else is."
His new Citizens Bank of Canada mortgage included a $10,000 line of credit at prime for energyefficient
upgrades and a blue recycling bin filled with $875-worth of information and coupons, including
a $375 home energy audit to help determine what improvements can be made to his 18-year-old
Toronto-area home.
"It's interesting to find out a bank is doing this instead of some government agency," Hatzidimitriou
said. "I like that."
Banks and credit unions are starting to offer what they call green mortgages and green loans for
energy-efficient improvements, and plan to roll out new products and improvements this fall and into
next spring.
Citizens Bank began offering green mortgages last April in Ontario and will expand them to other
provinces by next spring, said John Filice, director of residential mortgages.
Ontario-based Alterna Savings started last spring to offer green loans of up to $100,000 at preferential
rates for energy efficient retrofits, said Carl Wills, Alterna's credit product manager.
And B.C.'s Vancity Credit Union (which wholly owns Citizens Bank) has been involved for many years
in financing green and sustainable commercial properties, and now offers a climate-change mortgage.
Vancity doesn't advertise this mortgage; instead it takes the money usually spent acquiring mortgage
business -- $1,250 per mortgage -- and invests it in a climate change fund.
Even some of the bigger banks are examining green possibilities.
"We are very seriously looking at this," said Kelly Hechler, spokesperson for TD Canada Trust. "We
know there's interest out there. We've seen it in polls we've done of homeowners who say it's
becoming an important thing to them."
The Edmonton Journal
Tue 04 Sep 2007
Page: A5
Section: News
Byline: Kathryn Young
Source: CanWest News Service
Monday, 6 August 2007
Real estate broker pushes for home 'green auditing'
We all know the market is doing well in Toronto (Another Record in July!!!!!! etc.) And interest rates have gone up from crazy low to just very very low...
So I would like to steer this form towards things about housing. With today's focus on environmental awareness I truly feel that incentives given at the time of purchase would certainly help home owners tale the steps necessary to lower their carbon footstep.
What follows would be a great first step...
The Vancouver Sun
Fri 27 Jul 2007
Page: E7
Section: Businessbc
Byline: Kathryn Young
Source: CanWest News Service
Every Canadian home should have a mandatory energy evaluation before it can be put on
the market, says a Toronto real estate broker who is setting up a national green real estate
association.
"Within five years, we hope to have mandatory energy audits right across Canada on
every resale home," said Elden Freeman, executive director of the non-profit National
Association of Green Agents and Brokers, which has 15,000 members.
Freeman plans to join forces this fall with James Rodgers, executive director of B.C.'s
Greener Realty Association, to help teach real estate agents -- about 88,000 in Canada --
how to promote green homes and encourage homeowners to make energy-efficient
upgrades. In Canada, 40 per cent of greenhouse gas emissions are attributed to the
construction and operation of homes.
"Realtors have a huge opportunity to be very effective communicators," said Rodgers.
"They're the ones sitting down at kitchen tables chatting about houses."
He and Freeman believe mandatory energy evaluations -- which assess insulation,
appliances, furnaces, air conditioners and exhaust fans, and measure how airtight a home
is -- are the way of the future. Britain plans to introduce them Aug. 1 for houses with four
or more bedrooms.
Freeman has begun talks with Ontario officials in the energy and environment
departments about energy evaluations as a way to reduce power consumption.
"Weak houses would be forced to improve or sell for less money," he said.
Rodgers began his green realty company in the Kootenay region 18 months ago. He
offers buyers $500 towards an energy audit or site assessment for solar, wind or microhydro
system.
So I would like to steer this form towards things about housing. With today's focus on environmental awareness I truly feel that incentives given at the time of purchase would certainly help home owners tale the steps necessary to lower their carbon footstep.
What follows would be a great first step...
The Vancouver Sun
Fri 27 Jul 2007
Page: E7
Section: Businessbc
Byline: Kathryn Young
Source: CanWest News Service
Every Canadian home should have a mandatory energy evaluation before it can be put on
the market, says a Toronto real estate broker who is setting up a national green real estate
association.
"Within five years, we hope to have mandatory energy audits right across Canada on
every resale home," said Elden Freeman, executive director of the non-profit National
Association of Green Agents and Brokers, which has 15,000 members.
Freeman plans to join forces this fall with James Rodgers, executive director of B.C.'s
Greener Realty Association, to help teach real estate agents -- about 88,000 in Canada --
how to promote green homes and encourage homeowners to make energy-efficient
upgrades. In Canada, 40 per cent of greenhouse gas emissions are attributed to the
construction and operation of homes.
"Realtors have a huge opportunity to be very effective communicators," said Rodgers.
"They're the ones sitting down at kitchen tables chatting about houses."
He and Freeman believe mandatory energy evaluations -- which assess insulation,
appliances, furnaces, air conditioners and exhaust fans, and measure how airtight a home
is -- are the way of the future. Britain plans to introduce them Aug. 1 for houses with four
or more bedrooms.
Freeman has begun talks with Ontario officials in the energy and environment
departments about energy evaluations as a way to reduce power consumption.
"Weak houses would be forced to improve or sell for less money," he said.
Rodgers began his green realty company in the Kootenay region 18 months ago. He
offers buyers $500 towards an energy audit or site assessment for solar, wind or microhydro
system.
Tuesday, 10 July 2007
As if Home Prices were not High Enough Already!!!
Toronto Councillors are about
to vote on a tax that will cost the average
person an additional $4,200 upfront, or more,
when they purchase a home. The vote is on
a 100% increase in land transfer taxes.
Visit our website to find out what the tax will cost you and
then email the Mayor and City Councillors.
It’s Just Not Fair!
• A second land transfer tax
on top of the current provincial
land transfer tax – a double
whammy.
• Less money available for a down
payment.
• Less money for new furniture,
appliances or renovations.
• Homes for sale in Toronto would
be less marketable than those
outside of Toronto. This could
impact your property value.
A recent email from a concerned citizen
to Mayor Miller and City Councillors.
Dear Mayor Miller,
I’m a single, 26 year-old...I have
worked extremely hard, saving
virtually every penny so I could
fulfill my dream of being a homeowner.
The extra costs involved
have made it impossible for me to
afford purchasing a home of my
own. I believe this new homebuying
tax to be extremely unfair
for every hard-working Torontonian.
www.nohomebuyingtax.com
to vote on a tax that will cost the average
person an additional $4,200 upfront, or more,
when they purchase a home. The vote is on
a 100% increase in land transfer taxes.
Visit our website to find out what the tax will cost you and
then email the Mayor and City Councillors.
It’s Just Not Fair!
• A second land transfer tax
on top of the current provincial
land transfer tax – a double
whammy.
• Less money available for a down
payment.
• Less money for new furniture,
appliances or renovations.
• Homes for sale in Toronto would
be less marketable than those
outside of Toronto. This could
impact your property value.
A recent email from a concerned citizen
to Mayor Miller and City Councillors.
Dear Mayor Miller,
I’m a single, 26 year-old...I have
worked extremely hard, saving
virtually every penny so I could
fulfill my dream of being a homeowner.
The extra costs involved
have made it impossible for me to
afford purchasing a home of my
own. I believe this new homebuying
tax to be extremely unfair
for every hard-working Torontonian.
www.nohomebuyingtax.com
Friday, 6 July 2007
Best June Ever!
Best June Ever!
July 6, 2007 -- Last month the Toronto Real Estate Market recorded 10,451 sales for the best June performance ever, Toronto Real Estate Board President Donald Bentley announced today. "June's figure was up almost 20 per cent over the 8,730 sales recorded during the same month in 2006, and down only slightly (six per cent) from May's best-ever figure of 11,146 sales. To get some idea of the current strength of the market: there have been more sales in the last two months (21,597) than occurred in all of 1977 (20,512), thirty years ago this year."
While the sales pace remained brisk, average prices declined marginally (less than one per cent) from May to $381,963. The year-to-date average was $373,719, up five per cent over the first six months of 2006 ($356,977).
"Price increases remain only modest," noted the President. "Inventory, at 21,789, is robust enough to keep a lid on upward inflation. The current market is still accessible to first-time buyers, and should continue in this mode for the foreseeable future."
Breaking down the total, 3,936 sales were reported in TREB’s 28 West districts and averaged $356,513; 1,819 sales were reported in the 14 Central districts and averaged $513,491; 2,248 sales were reported in the 23 North districts and averaged $406,565; and 2,448 sales were reported in TREB’s 21 East districts and averaged $302,558.
July 6, 2007 -- Last month the Toronto Real Estate Market recorded 10,451 sales for the best June performance ever, Toronto Real Estate Board President Donald Bentley announced today. "June's figure was up almost 20 per cent over the 8,730 sales recorded during the same month in 2006, and down only slightly (six per cent) from May's best-ever figure of 11,146 sales. To get some idea of the current strength of the market: there have been more sales in the last two months (21,597) than occurred in all of 1977 (20,512), thirty years ago this year."
While the sales pace remained brisk, average prices declined marginally (less than one per cent) from May to $381,963. The year-to-date average was $373,719, up five per cent over the first six months of 2006 ($356,977).
"Price increases remain only modest," noted the President. "Inventory, at 21,789, is robust enough to keep a lid on upward inflation. The current market is still accessible to first-time buyers, and should continue in this mode for the foreseeable future."
Breaking down the total, 3,936 sales were reported in TREB’s 28 West districts and averaged $356,513; 1,819 sales were reported in the 14 Central districts and averaged $513,491; 2,248 sales were reported in the 23 North districts and averaged $406,565; and 2,448 sales were reported in TREB’s 21 East districts and averaged $302,558.
Tuesday, 12 June 2007
Time to lock in your variable rate mortgage
As a mortgage broker, I am constantly getting negative comments from clients when I tell them the fixed rate for a 5 year term is say 5.75%...... why so high ! they say.
My, we all have a short memory. It's amazing how selective our memory is.
Looking back over the years, it's not too difficult to see that this exceptionally low interest period was a "blip" and could not go on forever.
No one can see into the future, and maybe interest rates will drop later in the year.... but read the article below to get a very well respected economist's view on where rates are going to go
Please feel free to call me if you want to discuss what this might mean to you individually
Low-rate ride is finished, so lock in your mortgage
ROB CARRICK825 words05/06/2007
The Globe and MailB12English2007
CTVglobemedia Publishing Inc. All Rights Reserved.
The golden age of variable-rate mortgages is over. They're still a defensible choice if you're buying a home or renewing your mortgage, but the variable-rate option isn't the no-brainer choice it was a few years ago. In fact, fixed-rate, five-year mortgages look like the better choice right now.
Blasphemy, you say? Fair enough, given that the benefits of variable-rate mortgages have been talked up a lot in this column over the years. Priced off the prime rate used by banks for their best customers, variable-rate mortgages allow you to ride interest rates ups and downs over the years. In doing so, history has shown that you would have almost certainly paid less than if you locked into a five-year mortgage (that's the term chosen by almost everyone who goes with a fixed rate).
Benjamin Tal, a senior economist at CIBC World Markets and consumer credit expert, believes you'll continue to save on interest costs if you go with a variable-rate mortgage today instead of a fixed-rate loan. But the amount of the savings will be negligible, so much so that the worry-free comfort of the fixed-rate mortgage becomes a good value.
“Locking in now would not be a mistake,” Mr. Tal said. “In fact, it could be a good thing.” It's not just home buyers and people renewing mortgages who face the question of whether to go with a variable rate or a fixed rate. Large numbers of people are now working their way through variable-rate mortgages they set up a few years ago, and they're wondering about whether to use an escape clause that lets them jump into a fixed-rate mortgage.
To understand the appeal of the fixed-rate option, you have to look at how rates vary for short through long terms. Rates traditionally move higher and higher for longer terms, but today short rates are the loftiest. The net result for borrowers is near parity for short-term rates and longer-term rates.
Variable-rate mortgages soared in popularity earlier this decade because short-term rates were much cheaper than long-term rates, and they were falling. Choosing a five-year mortgage back then was almost like buying a useless insurance policy against interest rate shocks where the premiums were in the form of much higher interest costs. Today, you can get that insurance at a much lower cost.
The posted five-year mortgage rate at the big banks hit 7.14 per cent last week, the highest since the summer of 2001. That's far from the last word on five-year rates, however. A couple of major banks offered discounted five-year mortgages at 6.08 per cent yesterday, and some credit unions and alternative banks were as low as 5.3 to 5.5 per cent.
Now, compare these rates to a variable-rate mortgage, which is currently priced off a 6-per-cent prime rate at all lenders. Discounts on this type of mortgage range from 0.75 to 0.9 of a percentage point, so your true rate would be as low as 5.1 per cent. Advantage, variable-rate mortgage.
For now, that is. Economists at RBC Dominion Securities said they expect rate increases this year and next that would push up the prime to 7 per cent. At TD Economics, they see increases that would increase the prime to 6.5 per cent. Not everyone agrees rates will rise, but if they do, it could drive up the discounted cost of a variable-rate mortgage above 6 per cent.
The benefit of going with a variable-rate mortgage is that you're poised to benefit should rates decline after whatever increases lie ahead. The question is, what are the prospects for rates to decline any time soon?
Many economists would say they're minimal because of the need to keep inflation under control. Mr. Tal believes there's a case to be made for the rate that influences the prime to be half a percentage point higher than it is now for the next few years. After that, he said, it's possible that inflation could become a greater challenge than it is now and thus trigger more interest rate increases.
Then again, there could be a major terrorist attack, or the Chinese economy could stumble and send a shockwave around the world.
Global interest rates would fall and people with variable-rate mortgages would benefit. Today, inflation is a serious issue for the first time in years and interest rate increases are widely expected. Sounds like a good time to pay what could very well be a nominal extra amount for the protection of a five-year, fixed-rate mortgage.
My, we all have a short memory. It's amazing how selective our memory is.
Looking back over the years, it's not too difficult to see that this exceptionally low interest period was a "blip" and could not go on forever.
No one can see into the future, and maybe interest rates will drop later in the year.... but read the article below to get a very well respected economist's view on where rates are going to go
Please feel free to call me if you want to discuss what this might mean to you individually
Low-rate ride is finished, so lock in your mortgage
ROB CARRICK825 words05/06/2007
The Globe and MailB12English2007
CTVglobemedia Publishing Inc. All Rights Reserved.
The golden age of variable-rate mortgages is over. They're still a defensible choice if you're buying a home or renewing your mortgage, but the variable-rate option isn't the no-brainer choice it was a few years ago. In fact, fixed-rate, five-year mortgages look like the better choice right now.
Blasphemy, you say? Fair enough, given that the benefits of variable-rate mortgages have been talked up a lot in this column over the years. Priced off the prime rate used by banks for their best customers, variable-rate mortgages allow you to ride interest rates ups and downs over the years. In doing so, history has shown that you would have almost certainly paid less than if you locked into a five-year mortgage (that's the term chosen by almost everyone who goes with a fixed rate).
Benjamin Tal, a senior economist at CIBC World Markets and consumer credit expert, believes you'll continue to save on interest costs if you go with a variable-rate mortgage today instead of a fixed-rate loan. But the amount of the savings will be negligible, so much so that the worry-free comfort of the fixed-rate mortgage becomes a good value.
“Locking in now would not be a mistake,” Mr. Tal said. “In fact, it could be a good thing.” It's not just home buyers and people renewing mortgages who face the question of whether to go with a variable rate or a fixed rate. Large numbers of people are now working their way through variable-rate mortgages they set up a few years ago, and they're wondering about whether to use an escape clause that lets them jump into a fixed-rate mortgage.
To understand the appeal of the fixed-rate option, you have to look at how rates vary for short through long terms. Rates traditionally move higher and higher for longer terms, but today short rates are the loftiest. The net result for borrowers is near parity for short-term rates and longer-term rates.
Variable-rate mortgages soared in popularity earlier this decade because short-term rates were much cheaper than long-term rates, and they were falling. Choosing a five-year mortgage back then was almost like buying a useless insurance policy against interest rate shocks where the premiums were in the form of much higher interest costs. Today, you can get that insurance at a much lower cost.
The posted five-year mortgage rate at the big banks hit 7.14 per cent last week, the highest since the summer of 2001. That's far from the last word on five-year rates, however. A couple of major banks offered discounted five-year mortgages at 6.08 per cent yesterday, and some credit unions and alternative banks were as low as 5.3 to 5.5 per cent.
Now, compare these rates to a variable-rate mortgage, which is currently priced off a 6-per-cent prime rate at all lenders. Discounts on this type of mortgage range from 0.75 to 0.9 of a percentage point, so your true rate would be as low as 5.1 per cent. Advantage, variable-rate mortgage.
For now, that is. Economists at RBC Dominion Securities said they expect rate increases this year and next that would push up the prime to 7 per cent. At TD Economics, they see increases that would increase the prime to 6.5 per cent. Not everyone agrees rates will rise, but if they do, it could drive up the discounted cost of a variable-rate mortgage above 6 per cent.
The benefit of going with a variable-rate mortgage is that you're poised to benefit should rates decline after whatever increases lie ahead. The question is, what are the prospects for rates to decline any time soon?
Many economists would say they're minimal because of the need to keep inflation under control. Mr. Tal believes there's a case to be made for the rate that influences the prime to be half a percentage point higher than it is now for the next few years. After that, he said, it's possible that inflation could become a greater challenge than it is now and thus trigger more interest rate increases.
Then again, there could be a major terrorist attack, or the Chinese economy could stumble and send a shockwave around the world.
Global interest rates would fall and people with variable-rate mortgages would benefit. Today, inflation is a serious issue for the first time in years and interest rate increases are widely expected. Sounds like a good time to pay what could very well be a nominal extra amount for the protection of a five-year, fixed-rate mortgage.
Wednesday, 6 June 2007
Bad street name can drive down real estate
Bad street name can drive down real estate
The Leader-Post (Regina)
Fri 11 May 2007
Page: F5
Section: News
Byline: Misty Harris
Column: Market Value
Source: CanWest News Service
Apologies to sticks-and-stones philosophers, but it seems names really can hurt -- at least
when it comes to real estate.
Industry experts report a small but noteworthy negative effect between a badly named
street and the perceived market value of the homes or businesses on it: When identical
properties were simultaneously listed in the same neighbourhood, the dwelling whose
address evoked prestige was likely to fetch a higher price than the one that sounded like a
punchline.
Good news for residents of Country Club Drive in Kingston, Ont. Not so much for those
in nearby Bastard Ward.
"People attach values (to addresses) and pay a premium," explains Murtaza Haider, a
business professor and director of Ryerson University's Institute of Housing and
Mobility.
Haider recently analysed the property values of 300 homes either directly on or within
100 metres of Toronto's posh Bloor Street. Controlling for size, he found that having
Bloor in the physical address added a statistically significant premium to a property's
market worth.
"A street name, I think, carries a certain snob value," says Haider. "When Ryerson
markets its business program, it says 'MBA on Bay.' The reason is that they want to
capture the prestige associated with finance on Bay Street in Canada. But there isn't even
an entrance to the building on Bay Street. You enter from Dundas."
Research by Texas realtors Sylvia and Steve Crossland in 2006 similarly found that
properties in the same subdivision whose addresses had overtly violent names -- among
them Gun Fight, Ammunition and Six Gun -- sold for less than those on neutrally named
streets.
"Developers do spend some money coming up with appealing names, both for their
projects and for the streets within them," says William Strange, a professor of real estate
and urban economics at the University of Toronto.
"The branding probably brings them revenues, and the only way that can happen is for
there to be an impact of street name on property value."
Some of Canada's most bizarrely named streets include Dingle Bingle Hill Terrace in
Nanaimo, B.C., rue Schmuck in Shefford, Que., and Ragged Ass Road in Yellowknife,
N.W.T.
In Ontario's Bastard Ward, situated in the Township of Rideau Lakes, Mayor Ron
Holman recalls a movement to have the area's provocative name changed. The rebranding
effort resulted in an uprising among the locals, hundreds of whom took to wearing
buttons that read, "I'm a proud Bastard."
"When the final tally came in, it indicated that 90 per cent of residents were in favour of
the title Bastard remaining," says Holman, laughing. "I think the name is more of an
attraction than anything."
Americans seem to have the same idea, happily setting up house on Bucket of Blood
Street in Holbrook, Ariz., Black Weiner Drive in Savannah, Ga., Skunk's Misery Road in
Long Island, N.Y., Schmuck Road in Evansville, Ind., Poverty Plains Road in Warner,
N.H., Divorce Court in Pittston, Pa., and Shades of Death Road in Warren County, N.J.
Edition: Final
Story Type: Business; Column
Length: 494 words
The Leader-Post (Regina)
Fri 11 May 2007
Page: F5
Section: News
Byline: Misty Harris
Column: Market Value
Source: CanWest News Service
Apologies to sticks-and-stones philosophers, but it seems names really can hurt -- at least
when it comes to real estate.
Industry experts report a small but noteworthy negative effect between a badly named
street and the perceived market value of the homes or businesses on it: When identical
properties were simultaneously listed in the same neighbourhood, the dwelling whose
address evoked prestige was likely to fetch a higher price than the one that sounded like a
punchline.
Good news for residents of Country Club Drive in Kingston, Ont. Not so much for those
in nearby Bastard Ward.
"People attach values (to addresses) and pay a premium," explains Murtaza Haider, a
business professor and director of Ryerson University's Institute of Housing and
Mobility.
Haider recently analysed the property values of 300 homes either directly on or within
100 metres of Toronto's posh Bloor Street. Controlling for size, he found that having
Bloor in the physical address added a statistically significant premium to a property's
market worth.
"A street name, I think, carries a certain snob value," says Haider. "When Ryerson
markets its business program, it says 'MBA on Bay.' The reason is that they want to
capture the prestige associated with finance on Bay Street in Canada. But there isn't even
an entrance to the building on Bay Street. You enter from Dundas."
Research by Texas realtors Sylvia and Steve Crossland in 2006 similarly found that
properties in the same subdivision whose addresses had overtly violent names -- among
them Gun Fight, Ammunition and Six Gun -- sold for less than those on neutrally named
streets.
"Developers do spend some money coming up with appealing names, both for their
projects and for the streets within them," says William Strange, a professor of real estate
and urban economics at the University of Toronto.
"The branding probably brings them revenues, and the only way that can happen is for
there to be an impact of street name on property value."
Some of Canada's most bizarrely named streets include Dingle Bingle Hill Terrace in
Nanaimo, B.C., rue Schmuck in Shefford, Que., and Ragged Ass Road in Yellowknife,
N.W.T.
In Ontario's Bastard Ward, situated in the Township of Rideau Lakes, Mayor Ron
Holman recalls a movement to have the area's provocative name changed. The rebranding
effort resulted in an uprising among the locals, hundreds of whom took to wearing
buttons that read, "I'm a proud Bastard."
"When the final tally came in, it indicated that 90 per cent of residents were in favour of
the title Bastard remaining," says Holman, laughing. "I think the name is more of an
attraction than anything."
Americans seem to have the same idea, happily setting up house on Bucket of Blood
Street in Holbrook, Ariz., Black Weiner Drive in Savannah, Ga., Skunk's Misery Road in
Long Island, N.Y., Schmuck Road in Evansville, Ind., Poverty Plains Road in Warner,
N.H., Divorce Court in Pittston, Pa., and Shades of Death Road in Warren County, N.J.
Edition: Final
Story Type: Business; Column
Length: 494 words
Banks Boost Mortgage Rates
TORONTO - Canada's major banks are raising their posted mortgage rates by up to one third of a point in anticipation of a rate hike by the country's central bank.
After the Bank of Canada hinted an increase in its 4.25 per cent overnight rate could be in the pipeline as soon as July, RBC Royal Bank (TSX:RY), CIBC, (TSX:CM), Bank of Montreal (TSX: BMO) and TD Canada Trust (TSX:TD) all raised their rates effective Wednesday. The rate hikes also reflect the rising cost of borrowing in the bond market, where banks finance their mortgage lending.
Source: Edmonton Journal
After the Bank of Canada hinted an increase in its 4.25 per cent overnight rate could be in the pipeline as soon as July, RBC Royal Bank (TSX:RY), CIBC, (TSX:CM), Bank of Montreal (TSX: BMO) and TD Canada Trust (TSX:TD) all raised their rates effective Wednesday. The rate hikes also reflect the rising cost of borrowing in the bond market, where banks finance their mortgage lending.
Source: Edmonton Journal
Toronto Housing Market Reaches New Heights!
June 5, 2007 -- With an astonishing 11,146 sales in May, the Toronto Real Estate market put in its best performance since records have been kept, President Dorothy Mason announced today. "The Toronto Real Estate Board has been tracking the local housing market for over forty years, and there has never been a month that even approaches this level of activity," Ms. Mason stated. "May was up 18 per cent over April, our previous record month (9,452 sales), and also up 18 per cent over May of 2006 (9,434 sales), which now ranks as the third highest sales total recorded."
Ms. Mason further noted that, according to statistics compiled by the Canadian Real Estate Association, every home sale generates about $27,000 in economic activity (for renovations, furniture purchases, and so forth) over and above direct expenditures involved in the transaction. "This means that Realtors® and their clients have contributed over $300 million to the local economy in ancillary costs last month alone."
However, while sales sky-rocketed, price increases were restrained, with the average rising a mere five per cent to $382,787 from the $365,537 recorded during May of 2006.
Breaking down the total, 4,175 sales were reported in TREB’s 28 West districts and averaged $356,836; 2,038 sales were reported in the 14 Central districts and averaged $506,172; 2,323 sales were reported in the 23 North districts and averaged $408,391; and 2,610 sales were reported in TREB’s 21 East districts and averaged $305,168.
Source: Toronto Real Estate Board
Ms. Mason further noted that, according to statistics compiled by the Canadian Real Estate Association, every home sale generates about $27,000 in economic activity (for renovations, furniture purchases, and so forth) over and above direct expenditures involved in the transaction. "This means that Realtors® and their clients have contributed over $300 million to the local economy in ancillary costs last month alone."
However, while sales sky-rocketed, price increases were restrained, with the average rising a mere five per cent to $382,787 from the $365,537 recorded during May of 2006.
Breaking down the total, 4,175 sales were reported in TREB’s 28 West districts and averaged $356,836; 2,038 sales were reported in the 14 Central districts and averaged $506,172; 2,323 sales were reported in the 23 North districts and averaged $408,391; and 2,610 sales were reported in TREB’s 21 East districts and averaged $305,168.
Source: Toronto Real Estate Board
Thursday, 17 May 2007
Highest midmonth total ever
May 16, 2007 -- The resale housing market got off to a roaring start in May, with 5,003 sales reported during the first 15 days of the month, Toronto Real Estate Board President Dorothy Mason announced today. This is an 11 per cent increase over the first half of May 2006 and the highest midmonth sales total in TREB’s history.
“All signs point to a very healthy market for the remainder of the spring,” Mrs. Mason said. “In terms of activity, this year is about six per cent ahead of last year’s pace, and that’s an indication that there’s a lot of confidence in this market. Now is an excellent time to get started in the market or make a move.” The average price in the first half of May was up two per cent to $377,612 from the $369,543 recorded during the first half of May 2006.
Year-to-date prices were nearly five per cent ahead of the same time last year. Meanwhile average timeonmarket
for a listed home fell to 28 days, and the average listtosale price ratio rose to 99 per cent of the asking price.
In Scarborough’s West Agincourt neighbourhood (E05), condominium transactions more than doubled as the area saw a 39 per cent overall increase compared to midMay of 2006.
Strong condominium activity also pushed Mississauga’s City Centre (W15) to a 49 per cent overall increase compared to the same timeframe a year ago.
In the Downtown Toronto / Harbourfront area (C01), 34 per cent more homes changed hands compared to midMay of last year, fueled mostly by highrise condominiums.
In central Vaughan (N08), detached homes and town homes were the most active types as overall transactions increased from midMay of last year by 59 per cent."
Source: Toronto Real Estate Board
May 16, 2007 -- The resale housing market got off to a roaring start in May, with 5,003 sales reported during the first 15 days of the month, Toronto Real Estate Board President Dorothy Mason announced today. This is an 11 per cent increase over the first half of May 2006 and the highest midmonth sales total in TREB’s history.
“All signs point to a very healthy market for the remainder of the spring,” Mrs. Mason said. “In terms of activity, this year is about six per cent ahead of last year’s pace, and that’s an indication that there’s a lot of confidence in this market. Now is an excellent time to get started in the market or make a move.” The average price in the first half of May was up two per cent to $377,612 from the $369,543 recorded during the first half of May 2006.
Year-to-date prices were nearly five per cent ahead of the same time last year. Meanwhile average timeonmarket
for a listed home fell to 28 days, and the average listtosale price ratio rose to 99 per cent of the asking price.
In Scarborough’s West Agincourt neighbourhood (E05), condominium transactions more than doubled as the area saw a 39 per cent overall increase compared to midMay of 2006.
Strong condominium activity also pushed Mississauga’s City Centre (W15) to a 49 per cent overall increase compared to the same timeframe a year ago.
In the Downtown Toronto / Harbourfront area (C01), 34 per cent more homes changed hands compared to midMay of last year, fueled mostly by highrise condominiums.
In central Vaughan (N08), detached homes and town homes were the most active types as overall transactions increased from midMay of last year by 59 per cent."
Source: Toronto Real Estate Board
Friday, 4 May 2007
April reaches new heights
May 4, 2007 -- Resale housing activity in April powered the Spring market to never before seen heights, with 9,452 sales recorded during the month, TREB President Dorothy Mason announced today.
"With four months passed, 2007 sales to-date are up five per cent over last year," Ms. Mason observed. "We are on track for another near-record year." The Bowmanville area (E17) saw a sales increase of 43 per cent, driven by sales of detached and link houses.
Sales in Cooksville (W15) rose 26 per cent on the basis of strong movement in all housing types, and especially condominium apartments. Bayview Village (C15) and environs recorded a 50 per cent increase in sales over April 2006.
Transactions in most housing types were up over last year. Finally, the South end of Richmond Hill experienced a 30 per cent bump in resale transactions, due to detached and condo apartment sales.
"With April's results now in," Ms. Mason added, "it is clear that the Toronto resale market still holds excellent opportunities for both first time and move-up buyers."
"With four months passed, 2007 sales to-date are up five per cent over last year," Ms. Mason observed. "We are on track for another near-record year." The Bowmanville area (E17) saw a sales increase of 43 per cent, driven by sales of detached and link houses.
Sales in Cooksville (W15) rose 26 per cent on the basis of strong movement in all housing types, and especially condominium apartments. Bayview Village (C15) and environs recorded a 50 per cent increase in sales over April 2006.
Transactions in most housing types were up over last year. Finally, the South end of Richmond Hill experienced a 30 per cent bump in resale transactions, due to detached and condo apartment sales.
"With April's results now in," Ms. Mason added, "it is clear that the Toronto resale market still holds excellent opportunities for both first time and move-up buyers."
Best Day Ever, Best Month Ever!
May 4, 2007 -- With 581 sales reported on April 30, the highest single day total ever documented, April's total transactions reached an astounding 9,452, the best single-month total ever recorded, TREB President Dorothy Mason announced today. "The Greater Toronto Area's resale housing market has showed sustained strength and these phenomenal numbers bode well for the remainder of this year's spring market."
Average prices climbed three per cent in April, to $379,025 from last April's $366,683. "Despite the torrid sales pace," Ms. Mason said.
"Overall price increases are holding at marginally above the inflation rate, which means that potential first-time buyers are not being pushed out of the market."
Average prices climbed three per cent in April, to $379,025 from last April's $366,683. "Despite the torrid sales pace," Ms. Mason said.
"Overall price increases are holding at marginally above the inflation rate, which means that potential first-time buyers are not being pushed out of the market."
Monday, 23 April 2007
New legislation on mortgages - 80%LTV
April 23rd 2007
New legislation. Conventional mortgages no longer 75% loan to value (LTV). Now 80% LTV without CMHC/Genworth insurance.
Stay tuned for more news about this ever changing mortgage scene.
And no..... we're not going to have a situation like they have in the USA. Canadian lending is much more conservative
New legislation. Conventional mortgages no longer 75% loan to value (LTV). Now 80% LTV without CMHC/Genworth insurance.
Stay tuned for more news about this ever changing mortgage scene.
And no..... we're not going to have a situation like they have in the USA. Canadian lending is much more conservative
Thursday, 19 April 2007
April 2007 - Housing Market Going Strong
April showers don’t dampen home sales
April 18, 2007 -- The GTA resale housing market got off to a strong start in April, with mid-month sales coming in one per cent ahead of mid-April 2006, Toronto Real Estate Board President Dorothy Mason announced today.
The 4,175 transactions recorded in the first half of the month surpass the mid-April total of 4,140 sales recorded in 2006. Meanwhile, year-to-date figures for 2007 are nearly two per cent ahead of last year’s pace.
“We are very encouraged by the stability of the GTA market,” Mrs. Mason said. “Activity is strong yet controlled, and great economic fundamentals continue to keep things moving in the right direction.”
The average price of a home in the GTA reached $372,169 in the first half of April, up one per cent over the same timeframe in April 2006 when prices averaged $366,878. The median price rose three per cent to $315,000. Active listings were down five per cent from the same time in 2006, to 22,711.
Strong activity across all housing types in the Beach (E02) helped push overall sales up 44 per cent compared to mid-April of 2006.
The condo boom in Mississauga’s city centre (W15) was largely responsible for an overall sales increase of 41 per cent in the area, compared to mid-April of last year.
Toronto’s Forest Hill neighbourhood (C03) saw 54 per cent more overall transactions than to the same point a year ago, fueled mostly by detached home sales.
In Bayview Village / Hillcrest Village (C15), overall transactions increased by 36 per cent compared to the same timeframe in 2006.
“Consumers are showing a lot of confidence in this market,” Mrs. Mason said. “Their investments are showing steady returns, yet the market is still accessible to a variety of buyers.”
(Toronto Real Estate Board)
April 18, 2007 -- The GTA resale housing market got off to a strong start in April, with mid-month sales coming in one per cent ahead of mid-April 2006, Toronto Real Estate Board President Dorothy Mason announced today.
The 4,175 transactions recorded in the first half of the month surpass the mid-April total of 4,140 sales recorded in 2006. Meanwhile, year-to-date figures for 2007 are nearly two per cent ahead of last year’s pace.
“We are very encouraged by the stability of the GTA market,” Mrs. Mason said. “Activity is strong yet controlled, and great economic fundamentals continue to keep things moving in the right direction.”
The average price of a home in the GTA reached $372,169 in the first half of April, up one per cent over the same timeframe in April 2006 when prices averaged $366,878. The median price rose three per cent to $315,000. Active listings were down five per cent from the same time in 2006, to 22,711.
Strong activity across all housing types in the Beach (E02) helped push overall sales up 44 per cent compared to mid-April of 2006.
The condo boom in Mississauga’s city centre (W15) was largely responsible for an overall sales increase of 41 per cent in the area, compared to mid-April of last year.
Toronto’s Forest Hill neighbourhood (C03) saw 54 per cent more overall transactions than to the same point a year ago, fueled mostly by detached home sales.
In Bayview Village / Hillcrest Village (C15), overall transactions increased by 36 per cent compared to the same timeframe in 2006.
“Consumers are showing a lot of confidence in this market,” Mrs. Mason said. “Their investments are showing steady returns, yet the market is still accessible to a variety of buyers.”
(Toronto Real Estate Board)
Tuesday, 17 April 2007
The First Post
Hello and Welcome to my first Blog and first Blog posting.So why a Blog?Real Estate is my passion and if given the opportunity I can talk until I am blue in the face about it - just ask my wife!
Everyday I am sent interesting real estate articles, or someone shares valuable real estate insight with me, and I only ever get to talk about with my immediate clients. A blog gives me the opportunity to keep a dialogue with you all.
Also several clients over years have expressed to me that after the sometimes months we spent together are over it is a weird transition from everyday interaction down to occasional contact.
I fully appreciate this because you also became friends and 'household names' for a period in my life.
What I am left with after the 'sale(s)' are so many positive experiences which add to my professional knowledge and my personal growth. I hope I can share some of your great stories right here (with your permission of course!).
And so I welcome this great platform, and hope visitors will keep this site bookmarked and consider it a reference for when 'things real estate' are in mind.
David
Everyday I am sent interesting real estate articles, or someone shares valuable real estate insight with me, and I only ever get to talk about with my immediate clients. A blog gives me the opportunity to keep a dialogue with you all.
Also several clients over years have expressed to me that after the sometimes months we spent together are over it is a weird transition from everyday interaction down to occasional contact.
I fully appreciate this because you also became friends and 'household names' for a period in my life.
What I am left with after the 'sale(s)' are so many positive experiences which add to my professional knowledge and my personal growth. I hope I can share some of your great stories right here (with your permission of course!).
And so I welcome this great platform, and hope visitors will keep this site bookmarked and consider it a reference for when 'things real estate' are in mind.
David
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