Toronto Condo Bubble About to Burst?

There seems to be a growing segment of the population and the media that feel that the condo market is about to see declining prices. I am getting more and more comments like, “I heard that prices are going to come down this year, so I’m going to wait until that happens then buy”. Based on this, I thought it was time for an update on the ever popular question of “How is the condo market doing?”.

I would like to specifically break down several quotes from Benjamin Tal, Deputy Chief Economist for CIBC and Gordon Nixon, president and CEO at Royal Bank [Recent article Canadian Press], told a banking conference Tuesday that the Canadian housing market could be headed for a slowdown, led by Vancouver and Toronto. Tal is quoted as saying, “Prices are already softening, housing starts aren’t in the sky, MLS [multiple listing service] activity is starting to soften, so it suggests the market is already starting to level off”.

1. Prices are already softening. Really? Where exactly is this occurring? All I see are prices going up in the resale and pre-construction segments. There are far more buyers than sellers and average DOM [days on market] is still less than 30. Definite sellers market territory.

2. Housing starts aren’t in the sky. I’ve never understood why anyone bothers to look at housing starts as an indicator, other than on a year over year macro level. Housing starts go up and down with great volatility every month. Two new condo developments start selling today, one might break ground in 9 months, another in 19 months. One might take 18 months to build, another might be 26 months. Starting and selling and completing are three very different things. If someone can enlighten me on this metric I’d be much obliged.

3. MLS activity is starting to soften. I’m looking for a resale buyer who thinks this is true. Please contact me immediately if you feel that you have more than enough choices of quality, well priced listings fitting your search criteria! All I see when I’m on the ground every day with buyers is a shortage of listings and anything that hits the market with any sort of quality will sell over asking in multiple offers.

I would love to take these guys along with me as I search for properties (both condos and freeholds, pre-construction and resale, investors and end-users) for my buyer clients. I’m quite sure that after a day or two their opinion on the Toronto real estate market would change dramatically.
Please don’t get me wrong though-a slow down in our market would probably be a good thing after the run we’ve been on since March 2008. It would breathe some much needed life into the entire industry, however, I just don’t see it happening any time soon unless there is some dramatic shift in the market. Unless there is a rapid change in interest rates and/or a major economic catastrophe, the Toronto real estate market and the condo market in particular will continue on its current path which is presently appreciating at about 8% per year.

Bottom line: I think a lot of this fear mongering is just media hype.. Writers need something scary to write about and condos and the over-all Toronto real estate market are an easy target. My advice is for you to focus on your specific objectives when entering the housing market. If your main goals are to find a dream home to live for the next 10 years plus…then go for it!…. as day to day economic opinions and predictions from bankers and economists should not be your primary concern…remember…”do Not try and time the markets!

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home

December Market Update

Greater Toronto REALTORS® reported 7,092 residential transactions through the TorontoMLS® system in November – up 11 per cent in comparison to November 2010. At the same time, the number of new listings was up by 14 per cent in comparison to last year.

“We have seen strong annual sales growth through the 2011 fall market. The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area,” said Toronto Real Estate Board (TREB) President Richard Silver. “The market has also become better supplied, with annual new listings growth outstripping that of sales. As this trend continues into 2012, we will see more balanced market conditions.”

The average price for November transactions was $480,421, representing an increase of almost 10 per cent in comparison to $437,494 in November 2010.

“Despite strong price growth this year, the housing market remains affordable in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The correct method of assessing affordability is to consider the share of the average household’s income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace.”

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home

Mid-Month Resale Housing Market Figures

Greater Toronto REALTORS® reported 3,379 transactions through the Toronto MLS® during the first two weeks of November. This result represented more than a 13 per cent increase compared to November 2010. New listings were up 16 per cent over the same period.

The results for the first two weeks of November point to two important facts: First, despite global economic uncertainty, buyers have remained confident in the affordable housing market in the GTA. Second, stronger growth in new listings means that it is becoming easier for buyers to find a home that meets their needs.

The average selling price through the first 14 days of November was $481,548 – up by 10 per cent compared to the average of $437,510 reported for the first two weeks of November 2010.

Little or no movement is expected for mortgage rates through 2012. Low rates coupled with the consensus outlook for continued economic growth next year suggests that homes will remain affordable in the GTA and households will remain confident in doing deals. Look for the average selling price to advance to the $485,000 mark next year.

Market Watch Jan 2011

The Greater Toronto REALTORS® reported 4,337 transactions through the Toronto MLS® system in January 2011. This result was 13 per cent lower than the record result reported in January 2010. While off the record pace experienced a year ago, the GTA resale market has started the year on a solid footing. Home buyers in Toronto and surrounding areas continue to benefit from a diversity of housing types for sale at many different price points. The average selling price for January 2011 sales was $427,037, representing an increase of over four per cent compared to the average of $409,058 reported in January 2010. The average selling price is expected to grow at a moderate pace in 2011. Growth rates in the three to five per cent range will be sustainable from an affordability perspective.

January 2011 Market Report

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home

809-25 Broadway Ave For Sale!

809-25 Broadway Ave For Sale!

Luxurious 2+1 Bedroom condo unit nestled in a desirable neighbourhood of Yonge & Eglinton THE REPUBLIC Embrace the richness of the neighbourhood. Stunning new “Signature” corner unit. Fully Furnished Turn Key Investment Opportunity. $3250 in Monthly Income Natural light flows through this
beautiful space which features a blend of new hardwood, berber carpet, and stone floors. Open-concept eat-in kitchen, 3 baths, 2 balconies, premium size locker and parking. Built Green Built For Life!

Property & Location Features
Diversity. Embrace the richness of the neighbouhood. An umbrella of invaluable amenities to fulfill a busy life . A transportation gateway with subway, buses and routes in all directions. An electric mix of retailers and corporate leaders. Heritage nieghbourhoods. Grocers, cafes and fine restaurants. cinemas, walkways and parks. Vibrant sidewalk life – day and night. Yonge and Eglinton – full of character, excitement and possibilities. This is home in the city!

Condo Suite Features
This 1333 Sqft. 2+1 South-West facing corner unit inspires by how you live.With over $15,000 in furnishings including custom drapes, furniture, lighting, and accessories. Tridel is committed to creating, design-savvy spaces that are durable, with high performing features and finishes reflecting Tridel’s Built Green. Nine foot ceilings, expansive living and dining areas, fresh-air balconies and panoramic windows. A combination of hardwood, berber carpeting and stone floors anchor this unit while each room is accented with crown mouldings. An underground parking space with a adjoining premium size locker located near the elevator, makes life easier.

Inclusions
Energy Star Stainless Steel Fridge, Stove, B/I Dishwasher, B/I Microwave. Washer & Dryer. Gourmet Kitchen with Quartz counter-tops, Island and Tridel Signature Cabinetry. Porcelain Tiles. Light Fixtures & Custom Window Coverings. ALL FURNISHINGS [$15,000 Value **refer to list]

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home

Spring Market 2011

December Resale Home Sales

We are emerging from the slowest time of the year for real estate activity. The snow and cold weather means that buyers and sellers like to wait til spring before plunging back into the market. But it seems like the busy spring market happens earlier every year so don’t be surprised if sales activity is a little stronger than most experts are predicting. After the ups and downs of last year, 2011 is going to be stable and steady. Don’t look for much change in numbers of sales and listings. Last year was the third-best ever. and while sales are expected to drop, I think they will still be above the GTA’s 10-year average. The average annual rate of price growth is currently five per cent. Last year’s average selling price was$431,463.

This is an election year in Ontario and maybe also federally, so it is unlikely that we will have to deal with any major tax increases like we did last year with the HST. Buyers shed away after the HST came in, possibly not realizing that it does not apply to the price of resale homes. You only pay HST on the closing costs. Consumer confidence is strong, and mortgage interest rates are expected to remain very low all year. Employment has bounced back and is at about the same level as before the recession. The manufacturing sector, which is important to the out lying suburban areas, is improving. The soaring Canadian dollar continues to hurt exports, but Toronto’s service-based economy remains strong and poised for growth. Perhaps most importantly, immigration to Toronto continues at a high rate, which boosts home sales.

If you are looking for a home, now is a great time because there is little competition and plenty of listings. If you are selling, do it now to catch the early spring market.

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home

Home Prices Beginning To Recover Across Canada

Home Prices Beginning To Recover Across Canada

GTA REALTORS® reported 4,395 existing home sales for the month of December, bringing the 2010 total to 86,170 – down by 1% compared to 2009. Market conditions were anything but uniform in 2010. We went from super-charged sales activity during the first four months of the year, to a marked drop-off in transactions in the summer and then in the fall saw sales climb back to levels that are sustainable over the longer term. New Federal Government-mandated mortgage lending guidelines, higher borrowing costs and misconceptions about the HST caused a pause in home buying in the summer. As it became clear that the HST was not applicable to the sale price of an existing home and buyers realized that home ownership remained affordable, market conditions improved. The average home selling price in 2010 was $431,463 – up 9% in comparison to the 2009 average selling price of $395,460. In December, the average annual rate of price growth was 5%. At the outset of 2010, we were experiencing annual rates of price growth at or near 20%. This was the result of extremely tight market conditions coupled with the fact that we were comparing prices to the trough of the recession at the beginning of 2009. Balanced market conditions in the second half of 2010 resulted in more moderate home price appreciation. Expect the average selling price to grow at or below 5% in 2011. With this type of growth, mortgage carrying costs for the average priced home in the GTA will remain affordable for a household earning an average income. Home sales in the GTA were spread across a number of different housing types in 2010. Detached homes accounted for 49 % of total sales. Condominium apartments accounted for an additional 25% of sales. Other housing types including townhomes and semi-detached houses accounted for the final 26%. In some areas like TREB’s central districts the mix was quite different, with condominium apartments accounting for 61% of total sales. Ownership housing is available in a diversity of types and price points across the GTA, allowing plenty of choice for first time buyers and experienced home buyers alike. This housing diversity is one factor that continues to make the GTA a popular choice for households and businesses.

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home

Make signing a B.R.A. your first move.

If you’re planning to insure your home, why wouldn’t you want to ensure you receive a quality home-buying experience?
The Buyer Representation Agreement [B.R.A.] is a contract your REALTOR® should ask you to sign before they start working for you. This agreement helps to ensure you will receive the very best service your REALTOR® has to offer

The benefits of signing a B.R.A. include, but are not limited to:

•Reassurance of the duties the brokerage owes to the buyer
•Included in those duties is full disclosure of all property information known to the brokerage about a particular property
•These duties help to ensure that you receive expert, professional advice from your REALTOR®
•All listings on the Buyer Registry Service, so selling REALTORS® can find you easily because your home “must haves” can be registered
•Peace of mind that your best interests will be protected
•Diligent and attentive service

While a B.R.A. is an exclusive contract, there is nothing in the agreement that says you must buy anything. You can also use a B.R.A. to see if your REALTOR® is right for you by specifying the length of the contract with the brokerage.
Sign a B.R.A. Protect your interests. Hire the right REALTOR®

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home

A PERSONAL WORD ON CREA & THE COMPETITION BUREAU

I would like to take a minute to talk about the recent press with respect to the changes that have taken place as a result of CREA’s endeavours to strike a compromise with the Competition Bureau.

This issue is about REALTORS® maintaining the integrity of the MLS system so that both Buyers and Sellers remain protected and represented by professionals. The myth is that this is all about commission lost and locking out discount brokers. Discount brokerages have always existed and this may be the business model that attracts some REALTORS® and some consumers, but not all.

For example: one business model could be to list the Seller property on MLS for a flat fee without any further services such as: developing a customized go-to-market plan dependent on the property type, it’s location, the market and most importantly, the needs of the Seller; or the ability to negotiate a sale based on the knowledge of comparable properties that sold (or failed to sell) in the same neighbourhood; and of course offering the Seller the experience of a full service REALTOR® like myself who has been working the market for years.

I am proud to be a full service REALTOR®. I represent my clients in the purchase and/or sale of their single largest investment and I believe they deserve full service representation

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home

Be Fair When you Compare Condos

Comparing Condos

Today’s smart condo shoppers are thorough; they research the market so that when their purchases are made, they get the best value for their money. Comparison shopping is easier today than ever before, with the internet providing a huge vehicle for getting information out to the public. People can shop for condo suites 24/7, and potential buyers often show up in our sales offices with printouts of the designs that interest them. It is wonderful to see how much thought they put into comparing their options, especially with the fantastic selection of new condo buildings out there. I do caution, however, to look at the whole picture and be fair during the process. To use a cliché, compare apples to apples.

This means that making a decision based on square footage and price alone may not net you the best result for your needs. Size and price combined is a great indicator of value, but it’s not everything. There’s no point, for example, putting a two-bedroom suite up against a one-bedroom for obvious reasons. Even when comparing two one-bedroom suites, take a look at layout. A design with more open space may offer you more options for furniture placement. And do the two suites you are comparing have similar amounts of window area? That can make a big difference in how open and airy the surroundings feel.

Features and finishes should also have a prominent place in your comparison chart. What finishes are considered standard, and what upgrades do you consider necessary? Many builders offer granite kitchen countertops as a standard, but not all. If granite is on your “must have” list, find out how much it will be to add it. You may feel it is worth choosing a smaller suite with more luxuries, if your tastes run to the finer things in life.

And have you taken a good look at the amenities in the building. Again, compare how many of your “must have” items are in the two buildings under consideration. Plus, is one collection more luxurious than the other? For example, if you swim and/or work out every day and currently belong to a gym, having exercise facilities in your new condo will save you money each month by not needing a membership in an outside fitness centre. Are you an outdoor person at heart? Look at whether the suite you are considering has a balcony, and whether the building has a roof garden or terrace lounge.

Your pocketbook should also drive your decision in other ways beside price. For most people, location is the most critical element in their decision. Give that careful thought. You can pay more to live in an established area, or perhaps pay less in an emerging area. For some buyers, giving up a little in square feet to buy in a better location is well worth it in the long run. Plus, is one of the condos you are comparing close enough to your work that you can walk or take public transit? If you do not have to own a car, you will save a tremendous amount of money.

Savvy comparison shoppers ask a lot of questions. How about taxes? What exactly is included in the purchase offer? Are there levies that will come as a surprise on closing, or development charges? Will the HST be included? And be sure to ask whether the builder is offering any kind of special deposit structure or incentive. If you need to upgrade to get what you want, and there is a bonus offer of say, $5,000 in free upgrades, look at the big picture again. Having upgrade items put in during construction is far less expensive than having them done yourself in the future.

Is there concierge service? Does the price include a locker or storage space? Parking? And of course, maintenance fees. What are they estimated at? With so much choice out there, why not zero in on just the right condo suite for your personal lifestyle needs

Remember, I am only a phone call or email away to answer any of your questions and to help you start planning for any of your real estate needs. Feel free to contact me at 416 275-5980 or email me at rtazz@rogers.com. you can also visit my website at Feels Right at Home