November 2011 Volume 02 Issue 02
“First-Time Buyers”
Have Lots Of Options >> P Page ag 4
Should You List In December? >> Find out on Page 7
Pace of Home Sales Remains Brisk in October >> More on Page 8
1 1
Client Appreciation
Has Arrived!! >> Page 2
How To Get
The Best Return Returns On Home Renos t on P >> Th The SSecrets Page 10
Canada’s Real Estate Market Slows
While International Markets Stumble
Great Things about Homeownership
Hock
Tan
Broker
>> Find out on Page 9
TREB Report - 14 Days Of Increase Sales In October, 13% Over 2010 Comparable >> Page 8 Magazine Designed By: Kai Min Call 416-720-1738 or Email kaimin@melenion.org Picture Credits: Lina T. For Design & No-Obligation Consultation Melenion Development Studios
>> P Page 12
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Client Appreciation
It is that time of the year again to remind everyone of our annual "2011 Client Appreciation Event and Holiday Party" on November 26th 2011. If you have not already been contacted by TAN or members of his team, please do not hesitate to contact TAN or his team at 905-821-3200 or email him directly at btan@royallepage.ca
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Are you ready? Tan and the
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Tan and his team can provide you with an unparalleled level of service and attention when it comes to an important decision such as buying and selling your home. Our passion and knowledge of the area and commitment to making a difference has helped us build a name for offering the highest level of customer service possible. Call Tan now if you are planning to buy or sell your next home.
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News
Tan.gazine “First-Time Buyers”
Have Lots Of Options
Toronto SUN Column October 28, 2011
If you are considering the purchase of your first home you’re probably aware that like many of life’s milestones, there are many things you must consider. Understanding conditions in the real estate market is a good first step. Current conditions in the Greater Toronto Area resale market remain quite favourable for people looking to take the first step onto the property ladder. The housing market in the GTA continues to be supported by improving economic conditions which have led to sustained job creation, a lower unemployment rate and accelerating income growth. Financing remains affordable as well. The average interest rate for a five-year fixed rate mortgage is very low from a historic perspective. While it’s important to consider these fundamentals, it is also crucial to closely examine your individual circumstances, especially when determining what you can afford. Financial institutions will help you determine what you can afford by calculating your Gross Debt Service (GDS) ratio, an amount that includes monthly mortgage, tax, and utilities payments and a portion of condominium fees (if applicable). Your GDS ratio normally should not exceed 32 per cent of your gross monthly income. A lender will also look at your total debt picture by calculating your Total Debt Service (TDS) ratio, taking into account all obligations such as your monthly mortgage, car loan, line of credit and credit card obligations. As a rule of thumb, your TDS ratio should not exceed 40 per cent of your gross monthly income. Be sure to explore of the financing options available through different financial institutions.
When determining a price range it’s important to realistically consider miscellaneous monthly expenses, and to account for costs associated with the transaction including home inspection, survey and legal fees. Once you’re ready to begin your search, enlist a REALTOR® who will commit to representing your interests in writing using a Buyer Representation Agreement. More information on this important document can be found at www.BRAFirst.com. To find a home suited to your lifestyle, be sure to explore a number of different housing types and neighbourhoods with your REALTOR® before narrowing your search. REALTORS® have access to information on market conditions in individual neighbourhoods, on future development plans and on a range of local amenities. Your REALTOR® may also provide information on a number of available government programs to help make your purchase more affordable like the Five Per Cent Down Payment Program, the RRSP Homebuyers’ Plan, the First Time Home Buyers’ Credit, Land Transfer Tax rebates and more. Once you have found the right fit, your REALTOR® can use their expert negotiation skills to help you achieve a favourable agreement. Specialized skills and knowledge make your REALTOR® an invaluable resource, buoying your efforts as you navigate through one of life’s most important decisions.
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Portofino’s luxurious yet sleek and contemporary design is what sets it apart from all other luxury condominiums in the Detroit-Windsor Region. This 17 storey signature building defined by graceful architecture offers 123 suites with a majority offering panoramic views of Windsor’s riverfront parks, the Odette Sculpture Park, Ambassador Bridge and the Detroit skyline. Call TAN right now for more information and a no-obligation discussion to find out if this is just for you!
Albert Street
Glen Erin Drive
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Fort Erie
Mississauga
$399,883 Stoneywood Way
Princeton Terrance
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Mississauga
$419,900
Brampton
$495,000
$434,900
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$749,000
Guildwood Way Mississauga
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$248,883
Duke of York Blvd
FOR LEASE
Rare premium 3 bedroom townhouse unit in prime location, including open concept balcony, a den can be use as 4th bedroom. Functional floor plan, excellent location too! Call Tan today, for more details. W2220115
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$347,500
Faith Drive
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Mississauga
Ashcroft Cres. Mississauga
$749,883
Ideally located in Credit Woodlands Neighborhood, 3 bedrooms Semi-Detached are 138 feet deep with fully fenced yard, a separate entrance with car park up to 4 cars. Close to all amenities, want to know more? Call Tan now!
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Tan.gazineNews Should You List In December? Brian Madigan
November 30, 2010
Should you list in December? This is an interesting question. The statistics will demonstrate that historically, December is not a good month for real estate sales. However, the buyers and sellers who are around in December are serious and want to do business. Let’s have a look at the sales figures for the Greater Toronto area in December over the last few years: 2004……4,232 2005……4,255 2006……4,447 2007……4,647 2008……2,577 2009……5,541 2010......4,395 So, all in all, the activity seemed to produce about 1,000 transactions per week. Certainly, 2008 was an aberration. This was mere weeks after the world financial crisis before any resolution was in hand. The percentage of sales that took place in December related to the entire year is as follows: 2004……5.07% 2005……5.06% 2006……5.35% 2007……5.58% 2008……3.37% 2009……6.21% 2010......5.10%
The bottom line, of course, is that there is still activity and there are still sales. What about January? Is that a better month? Let’s have a look at the average sales prices. Did they increase in January, compared to the previous December? 2005……up 2006……up 2007……up 2008……down 2009……down 2010……down The conclusion is not evident at all. In the last three years, it was possibly worth waiting, although in the three years prior to that, there were slight measurable increases in January. To some extent, there is a missing month, somewhere in December and January. It can be based up the holiday schedule as well. It is challenging to complete transactions in the last two weeks of December or the first two weeks of January. That seems to reoccur every year. On the other hand, there are many of motivated sellers who would like to complete their sale before the end of the year and a number of anxious buyers (usually in the commercial field) who would like to buy before year end.
In October, the median price was $478,137 from the $442,799 recorded during October of 2010. Toronto, November 3, 2011
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.
benefitted from increased supply in the fall.”
Monthly sales data follow a recurring seasonal trend that should be removed beforecomparing 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.
“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.
“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
The average selling price through the TorontoMLS® in October was $478,137 – up eight per cent compared to October 2010.
“Thanks to low interest rates, strong price growth has not substantially changed the positive affordability picture in the City of Toronto and surrounding regions.”
Tan.gazineNews
Pace of Home Sales Remains Brisk in October
June, 2011
Tan.gazineNews
Greater Toronto REALTORS® Report
Mid-Month Resale Market Figures TORONTO, November 16, 2011 -- Greater Toronto REALTORS® reported 3,379 transactions through the TorontoMLS® 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,” said Toronto Real Estate Board President Richard Silver. 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.
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Broker
“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,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis
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Tan.gazine
Five Great Things about Homeownership
If you've been on the fence about homeownership, now is the time to take a leap! Don't let the negative press deter you from one of life's greatest joys.
Carla Hill
November 2, 2011 Take a look at five short and sweet reasons that homeownership is great! 1. Equity. When you pay rent, you never see that money again. It is lining the landlord's pocket. Yes, buying a home may come with some hefty initial costs (down payment, closing costs, inspections), but you will make that money back over time in equity built in the home. Historically, homes appreciate by about 4 to 6 percent a year. Some areas are still experiencing normal appreciation rates. For the areas that have seen harder times since the recession, experts feel that the housing market will recover. Homeownership is about building long-term wealth. A home bought for $10,000 in 1960 is most likely worth 10 times that in today's market. 2. Relationships: Renters tend to see their neighbours come and go quickly. Some people sign year leases while others are in the community for much shorter terms. Apartment complexes also tend to have less common shared space for people to meet, greet, and socialize. Homeowners, however, have yards, walking trails, or community pools and clubhouses where they can get to know each other. Neighbours stay put much longer (at least three to five years if they hope to recoup their closing costs). This means more time to develop relationships. Research has shown that people with healthy relationships have more happiness and less stress. 3. Predictability: Well, as long as you have a fixedrate term on your mortgage it's predictable. Most people buying homes today know that a fixed-rate is the way to go. This means your payment amount is fixed for the life of the term. If your mortgage
payment is $500 today, then it will still be $500 a month in 10 years. This allows for people to budget and make solid financial plans. The sub-prime crisis meant many homeowners with adjustable rate mortgages saw their monthly payments rise and then rise some more. Homeownership, though, generally comes with a predictable table of expenditures. Even the big purchases are predictable. You know most roofs last just 15 years (or so). You know that each year you'll need to pay for the gutters to be cleaned, and so on. 4. Ownership: Okay, this is a given. Homeownership means you "own" your home. That comes with some incredible perks, though! You can renovate, update, paint, and decorate to your heart's desire. You can plant trees, install a pool, expand the patio, or do holiday decorating that would rival the Kranks (if the HOA allows!). The bottom line is this is your home and you can personalize it to your taste. Most renters are stuck with the same beige walls and beige carpet that has been standard apartment decor for 20 years. Now is your chance to let your home speak! 5. Great Deals: It's a great time to buy. Interest rates are at historic lows. We're talking 4.0 percent instead of 6.0 or higher. This means big savings for today's buyers. Home prices have also taken a dip since the recession, which means homes are more affordable than ever. If you have steady income and cash for a down payment, then be sure to talk to your local real estate agent about what homes in your area could be a fit for you. Homeownership can be a real joy. It's time to get off the fence and into a home that is right for you!
News
Tan.gazine
How To Get On The Best Return
Renos Your Home
Amy Fontinelle
September 15, 2011 Are you making upgrades to your home with an eye toward improving your home's resale value? If so, consider these suggestions before you get started. 1. Check out the Competition When selling is your end game, the golden rule of home remodelling is to make your home comparable to others in the neighbourhood. If you over improve, you have no chance of recouping your investment. If you under improve, the other homes on the market will sell before yours does. Look at online real estate listings, attend open houses and talk to real estate agents to find out what features are considered to be the standard in your neighbourhood. If everyone else has scraped their popcorn ceilings and turned that cramped shower stall into a soaker tub, you should consider making these changes to your home too. If no one has an outdoor kitchen, adding one to your backyard probably won't pay off. Smart buyers are looking to buy either the worst house on the best block or a turnkey home, but they aren't looking to buy a house that's nicer than its neighbours. For the extra money, they would usually rather move up to the next nicest neighbourhood. 2. Pick Your Projects Wisely Avoid expensive, difficult and time-consuming projects like adding more square footage to your house. You may not recoup the money you spend, let alone the time and frustration. You don't want to over improve for the neighbourhood. If all the surrounding homes have 1,600 square feet, there's no reason for yours to have 2,000 square feet. Buyers looking for 2,000 square foot houses will be shopping in other neighbourhoods. There are also some big mistakes you can make in trying to make your home seem larger than it is. The biggest one is to knock down a wall that decreases the number of bedrooms or bathrooms. As a purely practical matter, two small bathrooms are better than one large one and a third bedroom is more useful than a master suite. Another bad improvement is a swimming pool. While pools are
a must have for some buyers, they also increase the ongoing costs of owning a home significantly. Homeowners insurance premiums will be higher because of the potential liability and maintenance costs are ongoing. Pools also take up a lot of the yard, and many people would rather have grass that their dogs or kids can run around on. 3. Appeal to a Wide Audience With any improvement you make with an eye toward selling, think beyond your personal taste. Neutral, classic colors and textures will have broader appeal than bold or unusual ones. They are also easier to change and personalize if the buyer doesn't like them. Also, make sure to choose colors and finishes that are currently in fashion. When buyers see outdated decor, they see dollar signs. 5. Don't Overlook the Basics If your home has a beautiful kitchen but a home inspection reveals that the roof needs to be replaced and the furnace is on its last legs, price-conscious buyers are likely to ask you to make these repairs or to drop the sale price. If you can't afford either of these options because you've spent the money elsewhere, you could have trouble selling the home. In today's economic climate, a home that isn't a money pit is the best selling feature for the ordinary buyer. Also, there's no sense in shelling out big bucks for remodelling projects if your house is so cluttered and dirty that buyers can't see them. If you have too much stuff, a rental storage unit can be a great investment in getting your home sold. Your first instinct might be to cram everything in the garage, the basement and the closets, but buyers will look in all of these places. You want to convey the idea that your home has plenty of storage space. The Bottom Line It's important to consider the housing market, economic climate and buyer's perspective when upgrading your home in order to sell it. Before you spend your time or money on any improvements, make sure you understand what today's buyers want.
News
Tan.gazine
Canada’s Real Estate Market Slows
While Most International Markets Stumble: Scotia Economics Canada Newswire
September 27, 2011
The renewed slowdown in global economic activity is putting further downward pressure on already- weak residential property markets across much of the developed world, according to the latest Global Real Estate Trends report released today by Scotia Economics. "In the majority of the major markets we track in North America, Europe and Australasia, inflation-adjusted home prices declined on a year-over-year basis in the second quarter of 2011," said Adrienne Warren, Senior Economist and Real Estate Specialist, Scotia Economics. "While Canada's hot housing market also has begun to cool, it remains a notable outperformer."
"We expect global housing demand to remain moribund until the global economic recovery gets back on a firmer footing and some financial market stability returns," stated Ms. Warren. "An oversupply of owner-occupied housing, due to overbuilding and rising foreclosures, remains problematic in many markets, adding to the downward pressure on prices. A generally more cautious lending environment also will hold back the pace of recovery." Of the nine major developed markets tracked by Scotia Economics, with available Q2 data, only Canada, France and Switzerland registered positive year-over-year (y/y) real price growth.
"Historically low borrowing costs combined with sharply lower home prices -- in many markets -- have restored considerable housing affordability," added Ms. Warren. "In more typical times, this would be a sufficient catalyst for a strong revival in housing demand. Indeed, residential investment traditionally has played a leading role in economic recoveries."
Canada's housing market stands out in its resilience and longevity. Average inflation-adjusted existing home prices were up five per cent y/y in the April-June period, on par with the firstquarter's pace of appreciation. Data for July and August point to continued firm but stable sales through the late summer, alongside a levelling out in prices.
But these are not normal times, according to the report. Consumer confidence has been dented by persistently high unemployment, intensifying European sovereign debt concerns, and signs that the global economic recovery is rapidly losing momentum. Renewed financial market volatility is adding to the general sense of unease. Many household are choosing to prioritize savings and debt repayment over major new purchases.
"Ultra-low interest rates will continue to support affordability in the face of record high prices," noted Ms. Warren. "Nonetheless, heightened economic uncertainty combined with recent signs of a loss of momentum in Canada's jobs market could keep some potential buyers on the sidelines for the time being.
Tony D’Avino Mortgage Broker Lic.# M08008849
Tel: 416.569.3836
Fax: 416.621.8257 tdavino@mortgagealliance.com www.mortgagealliance.com/tonydavino
Happy Holidays!
Merry Christmas Sunday, December 25, 2011
#104 - 121 Willowdale Avenue, Toronto, ON M2N 6A3
Market Shortage of Houses For Sale! The best time to list your home is NOW! Call TAN now for a free property evaluation!
TAN can market your home extensively ensuring you get your home sold, fast and for top dollar.
Home Inventory Levels Is Still Low
Moregs n Listid ! d e e Ne
Contrary to popular belief, December is one of the best time to list your property. Get the best bang for the buck!
Call for a free evaluation to discuss what’s in store for you.
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Are These The Questions Floating In Your Mind? • Is the Canadian Can adian d Housing Bubble Forming? • Are you ready for the return of Real Estate Market? • Are you not wondering, what is next in the market? • For all Sellers, is it still possible to sell for a good price? • How do you prepare to buy or to sell a home in a slow market? • If you are renting now and is thinking of buying a home but you have bad credit, past bankruptcy etc and do not know what to do next. What is your next move?
Got Questions? Talk To TAN NOW! e Buyer Investment & inHaom Sem r 2 January 27, 201 7pm-9pm Get a chance to win! a 32” LCD MonitSooorn!
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