GTA REALTORS® Release Condo Report

October 16, 2013 -- Greater Toronto Area REALTORS® reported 5,307 condominium apartment transactions through the TorontoMLS system in the third quarter of 2013. This result was up by 18 per cent in comparison to 4,498 condominium apartment sales reported for the third quarter of 2012. In the City of Toronto, which accounted for 72 per cent of condominium apartment transactions, sales were up by 19.5 per cent.

“The Echo Generation wants to live close to where they work and play. It makes sense that they have turned to condominium apartments as they have moved into home ownership. Many condominium apartments in the GTA are characterized by their proximity to a diversity of employment, transportation and leisure alternatives,” said Toronto Real Estate Board President Dianne Usher.

“A growing number of buyers have restarted their search for a condominium apartment since the summer. Despite the onset of stricter lending guidelines, buyers have found that home ownership remains affordable,” continued Ms. Usher.

The average selling price for condominium apartments in the third quarter of 2013 was $340,069 – up almost two per cent in comparison to the average of $333,846 in the third quarter of 2012.

“We experienced a moderate annual rate of increase in the average condo price. However, while condo sales were up, listings were down in the third quarter. If this trend continues, it could point to increased competition between condo buyers and an uptick in the pace of price growth moving forward,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

5 Things to consider when buying a resale home

The decision to buy a resale home is one of the most important ones your family will ever make. In order to be properly protected, here are 5 things to consider:

 

1. What information is the seller providing in advance?

Sellers used to provide property disclosure statements, telling buyers in advance about the condition of their homes and disclosing problems. Lawyers told them not to do this anymore, because of the potential for lawsuits. Some sellers are now conducting home inspections by a professional home inspection company before they list the property for sale and are giving a copy of the report to any buyer. This has proven to be a benefit to a seller, since they can correct any deficiencies noted by the inspector so they do not have to negotiate with the buyer later after the buyer conducts their own home inspection. Some sellers are also providing home history reports, which can be obtained from homeverified.com or Iverify.com which indicate whether the home has been the subject of an insurance claim for water, fire, flood or sewage backup, and whether the home was ever listed as a grow house or meth lab. The more information a buyer has in advance, the more informed their purchase decision. Still, even with this information, buyers should complete their own home inspection before committing to any purchase.

 

2. Ask the seller hard questions

Ask the sellers or their agent if they have had basement flooding problems, or mould or roof leaks, even if the leaks have been repaired, or any other adverse neighbourhood conditions, whether it is a suicide or murder in the home, or a half way house down the street. Watch how they answer. Sellers are required to respond truthfully to these questions if you ask them directly. If the seller refuses to answer or acts suspiciously, then you need to discuss this with your home inspector and your real estate agent and either adjust your purchase offer or walk away.

 

3. Check with the neighbours

During your home inspection, or before you put an offer in the first place, walk around the neighbourhood and ask the neighbours about the house you are interested and the neighbourhood itself.

 

4. Include the right additional clauses

Make sure that everything you expect to receive on closing is included in your offer. This includes mirrors, closet organizers, window coverings and TV brackets. Ask for 2 complete sets of keys, to get into the home and garage, especially if it is a condominium unit.

 

5. Make sure you can afford it

Get qualified in advance by a professional mortgage broker or your bank so that you know how much you can safely borrow. Make sure your lender will complete their appraisal of the property before you waive any financing condition. Be careful about getting caught up in a bidding war, because if your lender thinks you paid too much, they will not lend you what you may be expecting.

By following these tips, you should be better protected the next time you buy a home.

How to Avoid a Difficult Tenant

Here are some helpful tips to remember when looking for a tenant.

• When you advertise for a tenant, make it clear that you do background and credit checks;

• Ask any tenant to complete a detailed rental application, showing every place they have lived at least in the past 5 years;

• Ask for a current cheque stub from their place of employment, as proof that they are regularly employed;

• Ask for at least 3 personal references and call each one, including any prior landlord;

• Interview the tenant where they currently live, to see for yourself how they treat someone else's property;

• Check out the tenant on social media - whether it is pictures that they post or blogs that they may have written. For example, if you search Andreas Pirelli, the Alberta tenant referred to above on linked in, you will see that he claims to be the senior chief justice at Tacit Supreme law court;

• Have the property regularly inspected, to make sure that the tenant is properly maintaining the property and not causing any damages;

• Treat your tenants with ongoing respect, and they will look after your property better; consider a gift card if rent is always paid on time, or a Christmas present.

October 2013 Toronto Real Estate Sales Report

TORONTO, October 3, 2013 – Greater Toronto Area REALTORS® reported 7,411 residential sales through the TorontoMLS system in September 2013, representing a 30 per cent increase compared to 5,687 transactions reported in September 2012. Year-to-date, total residential sales reported through TorontoMLS amounted to 68,907 during the first nine months of 2013 – down by one per cent compared to the same period in 2012. "It’s great news that households have found that the costs of home ownership, including mortgage payments, remain affordable. This is why the third quarter was characterized by renewed growth in home sales in the GTA. We expect to see sales up for the remainder of 2013, as the pent-up demand that resulted from stricter mortgage lending guidelines continues to be satisfied," said Toronto Real Estate Board President Dianne Usher. The average selling price for September transactions was $533,797 – up by 6.5 per cent year-over-year. Through the first three quarters of 2013, the average selling price was $520,118 – up by over four per cent compared to the first nine months of 2012. The MLS® Home Price Index composite benchmark for September was up by four per cent year-over-year. The annual rate of growth for the composite benchmark has been accelerating since the spring of 2013. "The price growth story in September continued to be about strong demand for low-rise home types, coupled with a short supply of listings. Even with slower price growth and month-to-month volatility in the condo apartment market, overall annual price growth has been well above the rate of inflation this year. This scenario will continue to play out through the remainder of 2013," said Jason Mercer, TREB’s Senior Manager of Market Analysis. For the full report visit: http://www.ilisttorontohomes.com/account/78ab9f8164dfd923/pdfs/october_2013_Market_Watch.pdf As always if you are interested in more information on the Real Estate Market feel welcome to call me at 416-901-8777 or email me at aprasoulis@trebnet.com.