Ryan Roberts Toronto Real Estate Blog

May 2012 Toronto Real Estate Newsletter

noreply@blogger.com (MyDreamTorontoHome.com) — Wed, 16 May 2012 19:07:00 +0000

Ryan roberts toronto real estate broker may 2012 newsletter

Too Many Condo Developments in Toronto???

noreply@blogger.com (MyDreamTorontoHome.com) — Wed, 15 Feb 2012 21:27:00 +0000

Here is an interesting take on the condo developments in Toronto...According to Bloomberg. Bubble territory? 3 times as many developments as New York City... Worth reading...

here is the article:

Toronto Bubble Risk Tops New York in Condos: Mortgages

A sliver of land wedged between Toronto’s elevated expressway and an off-ramp that pumps traffic into downtown may become the epicenter for a Canadian housing bubble.
In four years, this site that’s now used as a parking lot and police impound near the shores of Lake Ontario will be home to Ten York, a 75-story glass building that would be the country’s third-tallest condo tower.
Toronto has more skyscrapers and high-rises under construction than any North American city -- almost three times as many as New York -- stoking debate on whether the condominium market in Canada’s largest city is headed for a U.S.-style correction as prices rise and household borrowing hits a record. Canadian lenders including Toronto-Dominion Bank last week raised mortgage rates to cool off the housing market.
“Condo construction has always been rather prone to boom and bust cycles, and this one seems particularly strong,” said Sheryl King, an economist with Bank of America Merrill Lynch in Toronto. “Builders seem to overestimate how much demand is going to be out there, and that’s when you tend to see some abrupt pull-back.”
Canada’s housing market is about 10 percent overvalued, with inflated prices primarily in Vancouver, Montreal and Toronto, King said in a telephone interview. “We would call it a bubble,” she said.

Mortgage Lending Expands

Rising home prices have led to a 53 percent increase in residential mortgage credit in the past five years, or an average rate of 8.9 percent a year. The volume of outstanding mortgages rose to C$1.08 trillion ($1.08 trillion) as of August, according to the Canadian Association of Accredited Mortgage Professionals. Defaults remain low, at 0.42 percent, according to data from Canada Mortgage & Housing Corp., a government-run housing agency.
The country’s financial authorities have become increasingly vocal about the housing market. The heads of Bank of Montreal and Royal Bank of Canada (RY); the country’s banking regulator, and Bank of Canada Governor Mark Carney have all expressed concerns about the condo markets in recent months as cranes and construction crews swamp Toronto.
Toronto has 148 high-rises and skyscrapers being built, compared with 59 tall buildings for No. 2-ranked New York City, and 22 in Chicago, according to Emporis, a Hamburg-based building data company.

Trump Toronto

Most of the work is for housing, with 105 residential high- rises proposed or under construction, according to a database by SkyscraperPage.com. Fourteen are slated to finish this year, including two hotel-condos. Trump International Hotel & Tower Toronto, Canada’s tallest residential building, opened Jan. 31, adding 118 luxury residences to the city’s inventory.
“The number of units under construction is quite high, start levels have trended up, and the number of units coming to completion is growing,” said Shaun Hildebrand, a senior market analyst for the Greater Toronto Area with Canada Mortgage & Housing Corp. “Supply at all ends of the development process is growing quite quickly.”
A record 27,504 condo units in the City of Toronto were under construction at the end of last year, according to Canadian Mortgage & Housing annual data, adding to the city’s total of 199,000 units.
“If builders stopped building today, there’s five years worth of supply that is about to be delivered, relative to what normal population growth is,” Bank of America’s King said.

Rates to Rise

Investors are piling into Toronto’s condo market because of cheap borrowing costs and that may become risky when interest rates rise, said John Andrew, a real estate professor at Queen’s University in Kingston, Ontario.
“They’re being bought because the interest rate is very low,” Andrew said in a telephone interview. “They’re financed to the hilt, so they’re very sensitive to the refinance risk when the loans come up.”
Banks are also cutting their funding costs by selling covered bonds, a form of corporate bond backed by assets such as home loans. Bank of Montreal and Bank of Nova Scotia sold $4.5 billion of the securities last month, after a record $25 billion of sales in 2011. Relative yields on the covered bonds fell to 130 basis points on Feb. 9, down from 170 at the start of the year, according to Bank of America Merrill Lynch data.
The Bank of Canada has held its benchmark lending rate at 1 percent since September 2010 and will probably maintain that level until the second quarter of 2013, according to median forecasts from economists compiled by Bloomberg. Carney has said “excesses may exist in certain areas” of Canada’s housing market.

Market Overshoot

“The elevated levels of ‘multiples’ inventories, the ample pipeline of developments underway, and heavy investor demand (much of it foreign) reinforces the possibility of an overshoot in the condo market in some major cities,” Carney said in a June 15 speech in Vancouver.
Investors are underestimating the potential impact of the surge in condo supply coming onto the market in the next 12 to 24 months, according to King. That could drive down resale prices and rents, even with low interest rates and a stable mortgage funding market.
“Investors are a concern given rental rates no longer fully cover costs and unit price increases going forward will not likely provide sufficient return,” the Office of the Superintendent of Financial Institutions said in a June draft report obtained last month by Bloomberg News through an Access to Information request.

Foreign Buyers

Foreign buyers are also affecting housing, according to OSFI. The bank regulator has been monitoring the impact of foreign investment on the housing markets in Toronto and Vancouver, the documents obtained by Bloomberg show. Authorities in China, Hong Kong and Australia have recently taken measures to cool off their residential real-estate markets, the documents note.
“The stability of Canada has moved it to the forefront of investor preference, in some cases ahead of the U.S.,” states a draft analysis of Toronto’s condo market.
Investors represent a “significant portion” of Toronto’s condo market, with 20 percent to 30 percent or higher for some projects, the report said.
High-rise homes reached a record 62 percent of all new home sales last year as condos outsold traditional detached homes three to one, RealNet said in a Jan. 20 report with the Building Industry and Land Development Association. That’s up from 25 percent of the market in 2000.

Demand Won’t Fall

“In absence of another recession, we’re not expecting demand to fall,” Canadian Mortgage’s Hildebrand said. “We’re expecting it to hold steady so long as the economy holds steady.”
Toronto is home to about 2.5 million people -- more than double that including its suburbs -- and accounts for about 11 percent of Canada’s economic output, according to the City of Toronto. The city is home to Canada’s five-biggest banks, two of the three largest Canadian insurers as well as some of the country’s largest pension funds, asset managers and financial- services firms.
Realtors and others in the industry say the record condo units under construction will be easily absorbed by 100,000 immigrants streaming into the city each year, wealthy foreign investors looking for a haven to park their money and young urbanites demanding to work near the financial industry that is the backbone of the city’s economy.

‘Good Place’

“There are reasons why people want to spend time in Toronto, and that’s part of what supports these real-estate markets,” said William Strange, RioCan Real Estate Investment Trust Professor of Real Estate and Urban Economics at Rotman School of Management in Toronto. “Toronto tends to be a pretty good place to do business and, with respect to Canada, it also tends to be a place where people want to live.”
Tridel, Toronto’s biggest condo developer, is already fielding calls for the 783 units of Ten York and plans to start selling in April, more than a year before the C$295 million project begins construction.
“There’s a tremendous amount of interest,” said Jim Ritchie, senior vice president of sales and marketing for Tridel. “We have thousands of names of people who want to buy here.”
Developers sell most units of a project before building begins, and many investors buy the condos to either resell or rent out when the construction is finished. Rental units accounted for 24 percent of all condos in Toronto last year, up from 21 percent in 2010, according to CMHC.

Vacancy Rates

A total 8,250 condo apartment rental units were added to Toronto last year, CMHC said. The average vacancy rate for Toronto rental condos was 1.3 percent last year, down from 2 percent in 2010.
Toronto’s rising prices for townhouses and single-family homes are driving more homebuyers into condos. In January, the average price for a detached home in Toronto was C$743,993, up 15 percent from the same month in 2011, according to Toronto Real Estate Board. The average price for a condo was C$343,835, up 5 percent.
U.S. housing prices plunged by a third between the peak of July 2006 and November 2011, according to S&P/Case-Shiller Composite-20 Home Price Index (SPCS20). By comparison, Canadian housing prices rose 32 percent in the same period, according to the Teranet-National Bank National Composite House Price Index.

No Bubble

Toronto isn’t facing a bubble because price increases have been steady, said Ben Myers, executive vice president of Urbanation, a Toronto-based real-estate research firm.
“We’ve seen the same level of increase in the market year- over-year in terms of index pricing in 10 of the last 15 years,” Myers said. “If we didn’t have an explosion of the bubble in those years, I’m not sure what would cause it to happen now.”
The housing gains have sparked worries that CMHC, Canada’s federal mortgage agency that insures some mortgages, is becoming overexposed to a potential slump, leaving taxpayers at risk.
Canadian Mortgage & Housing said Jan. 31 that it’s rationing mortgage insurance for lenders as the housing agency approaches the C$600 billion legal limit for backstopping the loans. Lenders have increased their demand for insurance of their mortgages amid “liquidity needs” since the 2007 financial crisis, CMHC said.
Lenders are becoming “increasingly liberal” with mortgages that don’t require borrowers to verify income, OSFI said in the documents obtained by Bloomberg News.
Finance Minister Jim Flaherty said that he’s concerned about loosening of standards by some Canadian financial institutions on those types of mortgages, and steps are being taken to “correct” the practice.

Tightening Standards

Toronto-Dominion Bank (TD) Chief Executive Officer Edmund Clarksaid in a Feb. 8 interview at Bloomberg’s New York headquarters that banks are tightening lending on loans for condominiums. Toronto-Dominion, Royal Bank of Canada and Canadian Imperial Bank of Commerce scrapped their promotional 2.99 percent mortgage rates last week, less than a month after they were introduced.
“Banks are leaning against it in the condo market right now and leaning against it in the unsecured lending market and just a general leaning against borrowing,” Clark said. He said the changes may lead to a “successful soft landing” for the housing market.
The government has already taken measures to restrain the housing market, including reducing amortizations and requiring stricter criteria for mortgage qualifications. Housing price gains have slowed in the past three months.
Still, housing markets in Vancouver and Toronto have become “severely unaffordable,” according to a January report by Demographia, a public policy firm.

Unaffordable

Vancouver’s median home price of C$678,000 in the third quarter was 10.6 times its median pretax household income of C$63,800, making the city the least-affordable housing market after Hong Kong among large English-speaking cities, Demographia said. Toronto’s home price of C$406,400 was 5.5 times household income of C$73,600, a 40 percent deterioration in affordability since 2004.
Fallout from Toronto’s construction boom may not surface immediately, according to Queen’s University’s Andrew.
“It’s going to be three-and-a-half to four years from now when these loans are all coming up and you’ve got a number of people who say they can’t afford to refinance it, so they’ll just sell,” Andrew said. “They’ll find out that 40 units in the building all went on the market in the same month, and now they’ve got a big problem.”
To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net
To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net

Link to this article: http://www.bloomberg.com/news/2012-02-13/toronto-bubble-risk-topping-new-york-in-market-for-condominiums-mortgages.html

January 2012 Toronto Real Estate Newsletter

noreply@blogger.com (MyDreamTorontoHome.com) — Thu, 19 Jan 2012 15:40:00 +0000

Ryan roberts real estate broker january 2012 newsletter

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9b Woodfield Road - Home For Sale - $519,000

noreply@blogger.com (MyDreamTorontoHome.com) — Tue, 13 Dec 2011 20:51:00 +0000

Just Listed! A wonderful, bright home steps from the all the best Leslieville has to offer as well as the Beach!

Executive Luxury Freehold Townhome In The Beach And Walk To Leslieville. Steps To The Boardwalk And Queen. Builder's Model With Many Upgrades - 9' Baseboards, Crown Moulded Ceiling, 10Ft Ceilings On Main Floor. Gas Fireplace In Large Chef's Kitchen. Ideal Space For Entertaining - 2 Walk-Outs - Large Private Rooftop Terrace. Maple Hardwood Floors. California Shutters. Close To Parks And Leslieville Farmer's Market. Large Garage With Direct Access To House.

Stainless Steel Fridge & Stove, Stainless Steel Microwave, Dishwasher, Washer/Dryer, All Electric Light Fixtures, All California Shutters, All Blinds, All Curtains & Rods, Patio Furniture, Large Planter On Deck, Cac, Built-Ins In Master.

For more information about this listing please visit my website: 9b Woodfield Road
For all of the photos and virtual tour click here: 9b Woodfield Road

Google Street View:

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Attention Tenants and Landlords of Ontario...

noreply@blogger.com (MyDreamTorontoHome.com) — Thu, 10 Nov 2011 18:45:00 +0000

I have recently come across some questions regarding what tenants are responsible for while renting, as well as what Landlords are responsible for. All of us at some point or another in our lives have rented, whether at university, or a flat before your first home purchase. There are many ins and outs that one needs to know...

For example:
1) How much notice must a landlord give the tenant to visit the property (in a non-emergency)?
2) How much notice of termination must a tenant provide?
3) What if a toilet seat breaks, who is responsible?

I have included a PDF from the Landlord and Tenant Board website as well as a link to their site for your information.

Know your rights whether you own the property or rent. This can save a lot of hassle.

Landlord and Tenant Board link

A guide to the ontario residential tenancies act

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November 2011 Toronto Real Estate Newsletter

noreply@blogger.com (MyDreamTorontoHome.com) — Tue, 08 Nov 2011 20:59:00 +0000

Ryan Roberts November 2011 Toronto Real Estate Newsletter

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November Toronto Real Estate Newsletter

noreply@blogger.com (MyDreamTorontoHome.com) — Mon, 07 Nov 2011 19:09:00 +0000

Here is the latest news from our market watch. One thing I would like to add to this information is that we have felt a slow down in the first week of November, approximately 3 weeks earlier than our seasonal slowdown. What we have noticed is that once a buyer has purchased there are fewer buyers coming into the buying process...ie, we are seeing less multiple offers and we are seeing houses begin to go "under asking".

Greater Toronto REALTORS® reported 7,642 home sales through the TorontoMLS® in October 2011. This represented an increase of 17.5 per cent compared to the 6,504 transactions reported in October 2010.

Monthly sales data follow a recurring seasonal trend that should be removed before comparing monthly results within the same year. After adjusting for seasonality, the annualized rate of sales for October was 97,100, which was above the average of 90,700 for the first three quarters of 2011.

"The pace of October resale home transactions remained brisk in the GTA. This bodes well for a strong finish to 2011," said Toronto Real Estate Board President Richard Silver. "Home buyers who found it difficult to make a deal in the spring and summer due to a shortage of listings have benefited from increased supply in the fall."

The average selling price through the TorontoMLS® in October was $478,137 - up eight per cent compared to October 2010.

"Sellers' market conditions remain in place in many parts of the GTA. The result has been above-average annual rates of price growth for most home types," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis.
"Thanks to low interest rates, strong price growth has not substantially changed the positive affordability picture in the City of Toronto and surrounding regions."

A Few Pics From Some Recent Travels

noreply@blogger.com (MyDreamTorontoHome.com) — Sun, 30 Oct 2011 02:10:00 +0000

I have had the opportunity to travel to some great areas this year. From the Rockies to the Coastal Mountains here in Canada and a brief stint in New Zealand for the Rugby World Cup. Here are a few pictures of some "accommodations" I found along the way...

Starting off with something I noticed while walking the streets of Vancouver (aside from the fact that a majority of houses are wooden), the basement floors are "above grade" something that you do not see very often in Toronto. What a difference this makes for a basement tenant (again, common in Vancouver due to the massive expensive required to purchase a home there). These basements are full of light. Instead of a 3x2 foot window at eye level you can actually have floor to ceiling windows...An example:

A quick and affordable option I came across in Kitsilano...it had a great view of the mountains and ocean...an excellent way to wake up in the morning. Or after a siesta.

Back here in Toronto, this is actually one of my favourite downtown homes, the back end appears to have been renovated in a nice modern way... (I do love red-brick century old homes):

Now on to New Zealand, I was walking along the wharf in Auckland Harbour when I happened upon a new condo development (this wasn't built during my last trip 6 years ago). I couldn't get over the parking, specifically the boat parking, there were private boat slips for the condo units, along with a private lock system. I have NEVER seen this before, I was in awe. What a way to live your life! (interestingly the car parking lot is located under the boat slip 'pond'. (the second pic shows the traffic lights for the boaters entering and exiting the locks into the harbour.)

An artist live/work space in the hills north of Auckland, the day before saw 24 sheep "cutting the grass" around the space. Very much off-the-grid:

A room with a view, perhaps we all grew out of this type of living once our childhood ended but it still stirs something deep within me ;)

Before I leave NZ, back to the ocean. Since the Rugby World Cup was in town there were many mega yachts of the world's wealthy visiting the harbour. There were some with helicopter pads, full motor boats parked inside boats, incredible. But!...this one stood out for me, it was beautiful - the wood, the shape, simply incredible. The size also blew me away, the pic doesn't do this any justice, have a look at the man at the bow, gives a little bit of an idea just how big this boat is. I have no idea how many can sleep on her, but I'm sure it could fit your friends.

Ah, a final shot, this one was snapped on the distant shores of Lake Simcoe this summer, my accommodations for a couple of dear friends' wedding...that is my suit hanging on the line ;)

Mid October 2011 Toronto Housing Report

noreply@blogger.com (MyDreamTorontoHome.com) — Mon, 24 Oct 2011 20:11:00 +0000

Here is the latest report for the first half of October. The market was quieter a year ago as we were seeing buyer fatigue. Many clients at the time were tired of seeing houses going in to multiple offer scenarios, so they stepped back for a breather which led to a temporary correction in prices. Only time will tell whether this happens again this year. At this stage what we do know is that quality homes are not readily available. When a good quality home that is priced well arrives on MLS there is a flurry of interest. Don't get me wrong we are certainly in a seller's market (and will be for a while) but a slight slow down is being felt due to the quality of homes. A quarter of the homes sold in our office last week went over asking, the other 75% were under. So, stay tuned to what the market holds as we head further into the fall...

TORONTO, October 18, 2011 -- Greater Toronto REALTORS® reported 3,477 transactions through the TorontoMLS® system during the first 14 days of October 2011. This total represented a 20 per cent increase over 2,890 sales reported during the first two weeks of October 2010. Year-over-year growth in new listings for the same period was slightly stronger than that recorded for sales – up 21 per cent to 6,249.

"The first two weeks of October seem to be pointing towards more balanced market conditions as we move toward 2012. Growth in new listings outstripped growth in sales, meaning more choice for buyers," said Toronto Real Estate Board President Richard Silver. "A growing number of home owners are reacting to the above average price growth reported this year and have decided to list their home for sale. They are confident they will receive timely offers in line with their asking prices."

The average selling price during the first two weeks of October was $475,743 – up 7.5 per cent compared to the same period in 2010.

"The average resale home price is expected to grow at a slower pace in the months ahead because the market is becoming better supplied. There will be less competition between home buyers as we move through the fall and winter." said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "With a more balanced market in 2012, the average rate of annual price growth is expected to be in the mid single digits."

Live off of your backyard?!?

noreply@blogger.com (MyDreamTorontoHome.com) — Wed, 24 Aug 2011 18:48:00 +0000

This is pretty cool...A little tough in a city environment however if you have 1.5-2 acres of land you can sustain yourself and your family...

http://1bog.org/blog/live-off-the-land-2/

Left Coast Housing

noreply@blogger.com (MyDreamTorontoHome.com) — Tue, 16 Aug 2011 15:39:00 +0000

I recently visited Vancouver. I was staying in Kitsilano... This city makes Toronto housing look affordable. Kits makes TO look downright cheap!?!

Picture a nice starter house in downtown Toronto...it's likely going to cost $650k. Now...try imagine the same quality and size (with a west coast wooden style) this starter home in Kits would cost you $1.6 million...

Toronto has many job opportunities that can provide for housing. Vancouver however relies more on international (mainly Asian) investments. In some cases one buyer will purchase multiple homes sight unseen.

Toronto is a great international city. Only when you have an opportunity to visits others do you gain this perspective. I firmly believe that TO's housing market will hold it's value over the long term.

Top 3 Coolest Things To Do In Toronto

noreply@blogger.com (MyDreamTorontoHome.com) — Wed, 22 Dec 2010 01:36:00 +0000

The Top 3 Coolest Things To Do In Toronto:

3. St. Lawrence Market...remember this place? Perhaps it is familiar because of childhood adventures with your folks or more recently when exploring for fresh foods. What a gem! While you are in the St Lawrence neighbourhood do a tour, there is a very interesting history to the area. Did you know that the last public hanging in Toronto was just around the corner from the market?

2. The new AGO is magnificent! I am always in awe of the glassed space that overhangs the Dundas St West sidewalk. The combination of wood and glass is incredible...oh, and the art is pretty cool too!

1. Explore the many great neighbourhoods that make up our cultural city (Central? Try Little Italy and Trinity Bellwoods area; West? Wander the streets and shops in Roncesvalles; East? Explore The Beach - endless shops and diners)

Warm In Bed

noreply@blogger.com (MyDreamTorontoHome.com) — Wed, 22 Dec 2010 01:21:00 +0000

Well, the cold weather is here - whether we like it or not it will be here to stay for a while.
I love jumping under my down duvet in the winter (and I don't enjoy getting out of it in the morning :)

A couple of years ago I bought a great duvet from a nice women in Parkdale. If you are looking for good advice (yes, there is a fair bit to know about feather types versus synthetic, loft etc...) Cathy can guide you for sure.

Down Facts
This is her site: Feather Factory

location: 1606 Queen St West, Toronto (Parkdale Neighbourhood)

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December Stats State: We're Still On Track For One Of Best Years!

noreply@blogger.com (MyDreamTorontoHome.com) — Thu, 09 Dec 2010 14:28:00 +0000

Well, it has been a quieter period of late but the news is still very positive. Let, me be more specific, the news from us the Realtors has been very positive. The stats have proven yet another good month. Keep in mind that 2009 was an extremely hot year for real estate growth in values and total transactions. It is unlikely that will be repeated for many, many years. With that in mind have a read through, you cannot deny that this is good news for the real estate owners and buyers looking to hold for the long term.

Greater Toronto REALTORS reported 6,510 existing home sales in November – down 13 per cent from 7,446 sales in November 2009. New listings were also down 13 per cent
annually to 8,642.

On a month-over-month basis, the seasonally adjusted annual rate of sales increased for the fourth straight month to 88,100. This rate was substantially higher than the July low of 67,900. “The GTA resale market has tightened since the summer. Healthy market conditions continued to support growth in the average selling price,” said Toronto Real Estate Board President Bill Johnston.

“Sales through the first 11 months of the year were down only marginally compared to the same period in 2009. We remain on track for one of the best years on record under the current TREB market area,” continued Johnston.

The average selling price for November transactions was $438,030 - up five per cent
compared to November 2009. “The average selling price in the GTA is affordable. A household earning the average income can comfortably cover the mortgage payments on an average priced home. Expect the average selling price to grow at a moderate pace over the next year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Median: In November, the median price was $366,000, from the $353,800 recorded during November of 2009.

Excerpt Taken From Toronto Real Estate Board Market Watch

Housing Affordability Improves In The GTA (Source: MoneyVille)

noreply@blogger.com (MyDreamTorontoHome.com) — Thu, 09 Dec 2010 05:00:00 +0000

Housing affordability is improving in the Greater Toronto Area, thanks to lower mortgage rates and softening price appreciation.

According to a Royal Bank of Canada report to be released Monday after four consecutive quarters of steep decline, housing affordability gained traction in the third quarter of 2010, thanks to bottoming mortgage rates and a slowing demand.

“The improvement in affordability has reduced some of the stress that had been mounting in housing markets during the past year,” said Robert Hogue, senior economist with RBC.

Housing affordability measures improved for the first time since the second quarter of 2009, when sales and prices of homes started to surge in the Toronto market coming out of the recession.

Many of those sales were buyers rushing in to avoid a new Harmonized Sales Tax and to buy before more stringent mortgage regulations. This led to fears that the market was in an unsustainable bubble.

“Although triggering a fair amount of anxiety while it unfolded, the Toronto area market’s return to earth this spring was, in retrospect, a mostly benign affair,” said Hogue. “The fears were that the payback for the clearly unsustainable record high levels of existing home sales at the start of this year would be an all out rout.”

So far that hasn’t happened, as the Toronto market seems to be in for a generally soft landing.

However, affordability is not expected to improve moving into next year with the spectre of increased interest rates, says Hogue.

“The recent decline in mortgage rates, however, is not expected to be sustained much beyond the coming months of this year,” said Houge.

RBC expects the Bank of Canada to start hiking rates in the second quarter of 2011.

“Higher mortgage rates will be the dominant factor raising homeownership costs over the medium term,” said RBC. “We expect housing demand and supply to remain mostly in balance.”

Some of the increases in mortgage rates will be offset by increasing household income as a mitigating factor, says RBC.

The price of an average two-storey home was $554,700 in the third quarter. But it would take a household income of $120,400 to afford that.

Some banks raised five-year fixed mortgage rates slightly last week by a quarter percentage point, as turmoil in Europe spilled over into the bond markets. However, variable rates can still be had as low as 2.15 per cent from some lenders. A five year fixed rate is going as low as 3.45 per cent.

The RBC affordability index for a standard two-storey home has fallen to at 56.1, down significantly from the 60 points recorded in the second quarter of the year. (the lower the number, the more affordable the home)

A rise in the index means homes are less affordable. The study measures the proportion of pre-tax median income needed to service the costs of owning a home such as mortgage, utilities and property taxes. A measure of 56.1 means that it takes more than half of average pre-tax income in Ontario to pay the monthly costs of owning a home.

The long term average since 1985 has been 53.4, meaning that affordability is getting closer to a normal range.

Nationally, the RBC index is slightly above long term averages, suggesting that “some greater than usual tensions persist for Canadian homebuyers,” according to the bank.

“These tensions are unlikely to derail demand for housing in the near term, but will act as a restraint on growth and market activity going forward.”

The Toronto market, meanwhile, looks reasonable when compared to Vancouver. There it takes 78.1 per cent of pre-tax income to afford a two-storey home. But that’s down already by 4.7 points from the earlier quarter.

An average two-storey home in Vancouver goes for $766,300. To afford that, you need to be earning $149,400 annually.

Taken from MoneyVille

November 2010 Toronto Real Estate Newsletter

noreply@blogger.com (MyDreamTorontoHome.com) — Sat, 13 Nov 2010 13:05:00 +0000

Chinese stoke Toronto’s condo boom

noreply@blogger.com (MyDreamTorontoHome.com) — Fri, 12 Nov 2010 17:22:00 +0000

They have cash aplenty; they are in it for the long term, and they have taken the GTA real estate market by storm.Chinese buyers have become by far the dominant force in the new condo market in the GTA. Estimates of their impact suggest overseas Chinese investors, the 100,000-strong local community and the 20,000 to 25,000 Chinese citizens who are students resident in the Toronto area now account for anywhere from 25 per cent to 40 per cent of all new condos purchased here.

In high-end suburbs in Markham and Richmond Hill, Chinese buyers are snapping up $1-million plus homes in both the new and resale markets. In some prime downtown Toronto projects they account for 65 per cent of the sales during the first few crucial launch weeks when prices are lowest.

“Their impact is huge,” says Stephen Wong, president and founder of Living Realty Inc. in Markham.
His company’s 500 agents handle about 4,000 resales a year plus 2.500 new homes. “Our view is that today Chinese investors account for 40- to 45 per cent of all new condo sales,” says Mr. Wong.

“The fact is, they love Toronto. They see a stable, steadily growing residential market in a country with a stable economy and political structure. As long as we can create projects in great locations at reasonable prices, they will keep buying in great numbers.”

Their clout has even reached into luxury new and resale homes in areas where there is a concentration of Chinese residents, says T.C. Chan, president of Tradeworld Realty Inc. His company has 200 agents and a strong focus on Asian investors.

“Where I live in Richmond Hill and in parts of Markham, 60 per cent of luxury resales – homes selling for $1.3-million plus – are going to Chinese,” he says. “We have homes where buyers use them just twice a year when they visit Canada, yet they maintain gardeners, cleaning staff year round.

“I have seen launch days at projects like Angus Glen when they release a new series of luxury homes and expect maybe three or four people to buy over the weekend but instead 20 Chinese families snap them up.” The importance of Chinese investors is shown in the fact that there are six major brokerages now specializing in the trade and about 10 Chinese publications in the GTA dedicated to the real estate market, says Mr. Wong. There is even a professional organization: The Chinese Real Estate Professional Society of Ontario. The extraordinary interest from Chinese buyers begs a number of questions. Where are they coming from? Why are they buying in Toronto? And is the surge of investor-owned condos a good thing?

Last question first: While many people who buy a condo for their own use might feel uncomfortable living in a building where a large number of suites are occupied by short-term renters, without investor-owned suites the GTA would have virtually no rental stock available.

Experts like Barry Lyon of N. Barry Lyon Consulting Ltd. point out that, because of rent controls, about 98 per cent of new rental suites have come from investor-owned condos. Just two years ago when prices for new suites reached the stage where they made little economic sense as a rental unit, investors fled the market.

The concern then was that the GTA would face a shortage of rental suites and rents for what was available would shoot up as vacancy rates dropped. This fall, however, builders managed to cut selling prices at newly launched projects simply by reducing the size of suites.

The cost per square foot remained the same, but the price per suite was down by about 10 per cent. Once again investors could plunk 20 per cent down and see enough in rent to cover mortgage and maintenance payments with a reasonable return.

“Smart Chinese investors can get 4 per cent a year return on a rental plus a significant return on built-up equity and the natural rise in real estate prices when they sell down the line,” says Mr. Wong.

Taken from the Globe and Mail

Top 3 Downtown Streets

noreply@blogger.com (MyDreamTorontoHome.com) — Fri, 12 Nov 2010 15:25:00 +0000

So, this isn't quite David Letterman's top 10 but, there isn't a single weak link in this top 3, promise.

Toronto is full of some fantastic leafy streets only steps to some great parks and parkettes. Some downtown street are full of history, whether originally housing the Toronto elite, politicians there is a story behind each one.

Here are my Top 3 Downtown streets...

3. Markham Street between College Ave and Harbord houses some of the great Georgian and Victorian homes of Toronto's downtown. This street provides access to fantastic shops along College (Little Italy) and to an ever growing cafe and fine dining culture along Harbord. Take a walk north of Harbord and you will find yourself in the quaint Mirvish Village with it's converted Victorian homes - lots of culturally stimulating shops and a handful of good pubs just before reaching Bloor (the home of Honest Eds)

2. Rusholme Road - this street is the greatest kept secret in Toronto... there are many magnificent houses along Rusholme, some properties are 50 feet wide by 250 feet deep!!! Some of these houses look like they haven't been lived in decades. Queen Anne Architecture is prevalent in this stretch. The history behind this street located in Dufferin Grove Park is that wealthy horse owners used to live in the local houses with 2 story coach house and stable houses at the back (10 foot ceilings on the main floor for the horses while 6.5 feet ceilings on the second floor for the jockeys who rode theses horses at the local race track (now Dufferin Mall). It is not uncommon to see a house sell on Rusholme for 1.5 million +++ but requiring a complete renovation costing hundreds of thousands of dollars. This is a gem of street that only Dufferin Grove residents really know about.

1. Palmerston Boulevard....perhaps not a big surprise here! The globe shaped street lamps lining the street south of Ulster towards College the large gates at both the Bloor Street and College Street entrances gives this street a classical English feel unmatched in Toronto. The old mansions have acted as University of Toronto rooming houses since the 1960s. In recent years the rejuvenated interest in Toronto's downtown has brought new buyers into the area who are renovating and/or restoring these expansive homes into single family residences.

Dufferin Grove & Dovercourt Park Real Estate Sales For October 2010

noreply@blogger.com (MyDreamTorontoHome.com) — Thu, 11 Nov 2010 18:28:00 +0000

October was a pretty hot month throughout the core of our city. Dufferin Grove and Dovercourt Park saw a number of houses sell. That being said there hasn't been a lot of selection for buyer's to choose from. I expect that the demand will stay relatively high in our neighbourhood for months to come.

Here is the house values breakdown for the month of October:
- 10 sales
- Average value was $506,015
- Median value was $492,150
- Sale to percentage of list price: 101.7%
- Days on the market: 17
- 2 rowhouses, 5 detached homes, 1 dublex, 2 semi-detached houses were sold.

Houses on the following streets were sold:
4 on Gladstone ave, Ossington Ave, Bartlett Ave, Westmoreland Ave, 2 on Delaware Ave, Havelock Street.

Both the Dufferin Grove and Dovercourt Park neighbourhoods make up a part of the following Toronto Real Estate Board districts C1 & C2, the sales info are as follows:
GTA Sales: $443,729
C1: $408,015
C2: $801048
Days on the market: 24

CREA slashes home-sales forecast

noreply@blogger.com (MyDreamTorontoHome.com) — Fri, 05 Nov 2010 20:39:00 +0000

Keep in mind that this is total transactions noted here. Price and value are far more stable...

The Canadian Real Estate Association slashed sales forcast Friday, saying activity will decline this year and next. National sales activity is now expected to fall 4.9 per cent this year and sales will tumble another 9 per cent next year. Prices, however, are expected to hold up better – ending this year 3.1 per cent higher than they started before falling 1.3 per cent next year.

Lackluster economic and job growth, muted consumer confidence, and the resumption of interest rate hikes next year are the main reasons behind the lower sales forecast. Private sector forecasts vary for next year, with some banks expecting prices to fall as much as 10 per cent in the next year.
September sales data from the national association showed the average national sales price at $331,089, which means CREA believes prices will continue to fall for the rest of the year. Prices peaked in May, when they hit $346,881.

While sales are expected to cool, the number of listings is also expected to remain muted – keeping prices stable.

“Housing demand and supply is stabilizing,” said Gregory Klump, CREA’s chief economist. “That’s good news for home buyers, who will feel less hurried to make an offer than they did when transitory factors ignited housing demand in early 2010. It’s also good news for home sellers, who will feel more confident about price stability now that the housing market has become balanced.”
The organization said interest rates will move higher next year, but that they shouldn’t rise enough to keep people out of the market.

“Many households will be focused on paying down their debts before the Bank of Canada resumes hiking interest rates next year,” said Mr. Klump. “Economic uncertainty is likely to keep potential homebuyers in a cautious mood, so the continuation of low and stable interest rates is unlikely to cause housing demand or prices to swell.”

The organization next releases sales data for October on Nov. 15. The Toronto Real Estate Board released its October numbers Thursday, showing a 20 per cent drop in sales compared to a year ago. Sales were 36 per cent lower in Vancouver, its board said in Wednesday.
CREA said much of the national decline in the next year will be driven by lower demand in Ontario and British Columbia.
The Toronto board optimistically said prices have held steady because real estate in the city has “remained affordable” at an average $443,729 in October.

“The average selling price in the GTA has continued to grow relative to 2009 because home ownership has remained affordable,” said Jason Mercer, the Toronto Real Estate Board’s senior manager of market analysis. “A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home.”

The Bank of Canada doesn’t share the board’s optimism. Governor Mark Carney has warned that Canadian household debt is too high.

Speaking to the House of Commons finance committee last week, Mr. Carney said the slowdown in housing is unfolding as the central bank expected it would, given the tighter mortgage rules brought in by the Finance Department earlier this year and the fact more Canadians are retrenching after spending and borrowing with abandon amid record-low interest rates.

Still, he warned, a quicker drop is possible. That would almost certainly mean Canada would see slower economic growth than Mr. Carney's latest forecasts, which included downgrades for five consecutive quarters.

“One of the important downside risks to our projection is the possibility that there is a more abrupt correction in the housing market than we're anticipating,” Mr. Carney told lawmakers. “We're not forecasting an abrupt correction, but it is a possibility, given two factors: the speed with which house prices rose and, secondly, the absolute weight of debt in the economy that is tied to housing.”

Taken from Globe and Mail November 5, 2010

OCTOBER 2010 Toronto Housing Sales and Stats

noreply@blogger.com (MyDreamTorontoHome.com) — Wed, 03 Nov 2010 13:28:00 +0000

This certainly confirms what I felt in the month of October. There was a pick up in activity for both my listings and buyers. September proved to be quieter due to a late holiday start and great weather. But there numbers rolled in to improve over last October! I hope that November brings more listings as there has been very little, quality homes and condos for sale of recent.

TORONTO, November 3, 2010 -- Greater Toronto REALTORS® reported 6,681 sales
through the Multiple Listing Service® (MLS®) in October 2010. This represented a 21 per cent decrease compared to the 8,476 sales recorded in October 2009. Through the first ten months of the year, sales amounted to 75,582 – up one per cent compared to the January through October period in 2009.

“The annual change in sales and average selling prices has been quite uniform across the GTA and by property type as the market has balanced out from record levels of sales in the second half of 2009 and first few months of 2010,” said Toronto Real Estate Board (TREB) President Bill Johnston.

“The composition of GTA home sales does differ depending on location. Condominium
apartments accounted for 42 per cent of total sales in the City of Toronto and almost 60 per cent of sales in TREB’s central districts,” Johnston continued. “In regions surrounding the City of Toronto, in contrast, low rise home types accounted for almost 90 per cent of transactions.”

The average price for October transactions was $443,729 – up five per cent compared to the average of $423,559 reported in October 2009. The average selling price through the first nine months of the year was $430,802.

“The average selling price in the GTA has continued to grow relative to 2009 because home ownership has remained affordable,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home.”

“The outlook for mortgage rates and income growth over the next year is favorable. The average home selling price could increase moderately next year and remain affordable for the average GTA household,” continued Mercer.

Free Pumpkins For Dufferin Grove Families

noreply@blogger.com (MyDreamTorontoHome.com) — Tue, 26 Oct 2010 18:50:00 +0000

It is that time of the year again...I will be handing out pumpkins to the first 50 Dufferin Grove families on Thursday October 28th, 2010 from 4-until out :)
At Dufferin Park Ave and Gladstone Avenue (see map)

Please come by and grab a pumpkins.

- Ryan

View Larger Map

Very Cool Graffiti On Garage In Little Italy Toronto

noreply@blogger.com (MyDreamTorontoHome.com) — Tue, 26 Oct 2010 13:41:00 +0000

A good friend of mine and past client just showed me his transformed garage door in his lane way. This image looks incredible. The story behind it is that a local kid had tagged the garage as "Skimpy" when they first moved in...nothing more than a tag. My client's brother and friend decided to give the tag a major upgrade to a full blown graf story... Check it out... Looks awesome!

House prices see return to normalcy

noreply@blogger.com (MyDreamTorontoHome.com) — Tue, 19 Oct 2010 19:23:00 +0000

A new survey says Canada's real estate market is showing signs of returning to normal as some of the uncertainty that plagued markets begins to fade away.
Royal LePage reported that house price appreciation slowed to modest five per cent growth level in the quarter – which it says is historically typical of balanced real estate markets.

It says wild swings in housing activity that were driven by economic uncertainty appear to have subsided as fears of a double dip recession or a housing bubble are set aside.
The survey found that, on a national basis, the average price of a detached bungalow in Canada rose to just over $324,531 in the third quarter – up 4.6 per cent from a year earlier.
Standard two-storey homes rose 4.4 per cent, to about $360,329, while condominium units increased by 3.9 per cent to just over $226,000.
Royal LePage said local markets like St. John's and Winnipeg posted home price increases above the national average, driven by a surge in the population.

October 19, 2010 Globe and Mail Article

‘Cautious Optimism’ Rules 2011 Housing Outlook

noreply@blogger.com (MyDreamTorontoHome.com) — Mon, 18 Oct 2010 21:49:00 +0000

Two well-known economists offered “cautious optimism” at the BILD Economic and Housing Outlook 2011 breakfast in Markham this week.
But Benjamin Tal, senior economist of CIBC World Markets, and Frank Clayton, consulting economist to the Altus Group, warned that the housing market will continue to soften for some time before stabilizing.
“Not everything is rosy in Canada, especially the housing market, and prices are going down,” said Tal. “This will have a significant impact on the economy as a whole.”
He predicted the housing market will continue to slow down over the next six to 12 months, with prices going down another 10 to 11 per cent before conditions stabilize. House values will rise at about the same rate as inflation after that, he said. The current adjustment period will be “painful but necessary.”
The pair also expect interest rates to remain low for at least another year and perhaps for two to three years. “But rates won’t remain low forever,” said Tal. “The current rates are unsustainable
“I doubt we will see interest rates rising in a significant way for 12 months and beyond,” said Tal, saying that today’s consumers are highly sensitive to rising rates, with the most vulnerable being the 35-plus age group with incomes of $50,000 or less. “The mortgage market is not as vulnerable as people think it is.”
He said the number of households with mortgages has fallen, but the amount of mortgages has increased.
Clayton said this year “is looking pretty good, about the same as last year,” but whenever the market weakens, new housing gets hit the hardest. When new home sales are up, resales are down and vice versa. As new home sales have been outperforming resale this year, he expects the opposite next year. He figures there will be 27,500 GTA new housing starts next year, compared to 33,500 this year. (During the “good days” of 2002 to 2008, there were about 41,800 starts a year).
“The condo market has been a lot stronger than I predicted a year ago,” he said. With 80 per cent of the sales in the first eight months of this year in Toronto, “it’s really a Toronto story.”
A number of factors will influence the housing market including employment/income, affordability, demographics, confidence, the lack of purpose-built rental housing, relative price (new versus resale), land use planning and government-imposed costs.
While Toronto has seemed to have been an island in adding jobs, he said, adding that “unfortunately I think this is going to do down.”
Clayton, like Tal, said no housing market collapse will take place, “but we are moderating.”
In the condo market, he said the owner-occupant market is slowing and will certainly be lower next year; investor buyers, who buy to rent out unit, are likely to continue to absorb new units coming on the market as long as they believe they can make money from renting, but there’s not a lot of data on these buyers.
“The investor market is not going to last forever,” Clayton cautioned, as factors like HST and rising costs will affect the rental condo market.
“The condo market is still a question mark in my mind,” he said. “I think we have too much product.”
As far as demographics go, Toronto’s population continues to grow by 100,000 people a year (nearly all immigrants), said Clayton. There is little growth in the 35 to 49 age group, which means little demand for move-up lowrise housing, and while the 50 to 59 age group is growing, they tend to stay put.
“The real growth is the 60- to 69-year-old age group,” said Clayton. “They want to downsize but a lot want ground-related housing or lowrise buildings. I think this is an untapped market for three- to four-storey condos.”
Clayton also predicted that “intensification is here to stay” and the City of Toronto has the potential to accommodate much more housing.
“I hear that low density land supply is constrained, although there is no data on that, but it should help keep the supply of housing under control,” said Clayton.
He predicted that renovation spending (both contracted and cash) will remain reasonably strong this year and next.

Taken From YourHome

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Market Overshoot

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‘Good Place’

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No Bubble

Tightening Standards

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November 2011 Toronto Real Estate Newsletter

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Live off of your backyard?!?

This is pretty cool...A little tough in a city environment however if you have 1.5-2 acres of land you can sustain yourself and your family...http://1bog.org/blog/live-off-the-land-2/

Left Coast Housing

Top 3 Coolest Things To Do In Toronto

Warm In Bed

December Stats State: We're Still On Track For One Of Best Years!

Housing Affordability Improves In The GTA (Source: MoneyVille)

November 2010 Toronto Real Estate Newsletter

Chinese stoke Toronto’s condo boom

Top 3 Downtown Streets

Dufferin Grove & Dovercourt Park Real Estate Sales For October 2010

CREA slashes home-sales forecast

OCTOBER 2010 Toronto Housing Sales and Stats

Free Pumpkins For Dufferin Grove Families

Very Cool Graffiti On Garage In Little Italy Toronto

House prices see return to normalcy

‘Cautious Optimism’ Rules 2011 Housing Outlook

This is pretty cool...A little tough in a city environment however if you have 1.5-2 acres of land you can sustain yourself and your family...

http://1bog.org/blog/live-off-the-land-2/