May 3, 2013 — Greater Toronto Area REALTORS® reported 9,811 sales through the TorontoMLS system in April 2013, representing a dip of two per cent in comparison to 10,021 transactions in April 2012. Both new listings during the month and active listings at the end of April were up on a year-over-year basis.
“Despite the headwinds we have experienced in the housing market this year, April sales came in quite strong in comparison to last year. As we move through the spring and into the second half of 2013, the demand for home ownership should continue to
“It has been almost a year since the federal government enacted stricter mortgage lending guidelines. It is realistic to surmise that some households, who originally put their decision to purchase on hold, are once again looking to buy,” continued Ms.
The average selling price for April 2013 transactions was $526,335 – up by two per cent in comparison to April 2012. The MLS® HPI Composite Benchmark Price was up by 2.9 per cent.
“The condominium apartment segment in the City of Toronto was a key driver of price growth in April, with both the average selling price and the MLS HPI apartment index up on a year-over-year basis. The improved condo sales picture, with Toronto sales down by only one per cent compared to last year, suggests that interest in condo ownership may be improving,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Toronto’s condo boom took a big breather in the first quarter of this year.
Sales plummeted by 55 per cent in the first three months of 2013 over the same period last year, as developers held back new project launches and took a wait-and-see approach in the face of a softening market and climbing inventory of condos for sale.
A total of 2,728 new units were sold up to the end of March, down 29 per cent just from the final three months of 2012. That’s less than half the 6,070 units sold in the first quarter of 2012 when the condo market was starting to come down from a record year of sales — 28,190 units — in 2011.
“Developers have been very disciplined. There were barely any new project openings and they are being very selective in what they do launch,” says Shaun Hildebrand, senior vice-president of condo market research firm Urbanation, which released its state-of-the-condo-market report Monday.
New project launches so far this year are the lowest since the fall of 2009, in the wake of the Great Recession.
“Given the sales numbers we saw in 2011 and up until the early part of 2012, which were on fire, that type of momentum had to give,” said Hildebrand. “The rebalancing now taking place is beneficial for the longer term stability of the market.”
While most of those 2,728 new units — some 79 per cent — already have buyers, the inventory of unsold units in new projects climbed during Q1 to 18,845 units, a 21 per cent jump over a year ago, Hildebrand notes.
Price gains, which have averaged 6.4 per cent annually over the last decade for new condos, have slipped significantly: the average index price of a new unit was up just 2.5 per cent in Q1, year over year, to $533 per square foot, now the same average price per square foot as resale condos, says Urbanation.
But the market has avoided, so far at least, the major collapse in prices that many housing watchers had been anticipating since last summer when the condo market started softening in the face of the euro crisis and tightened mortgage lending rules imposed by Ottawa that forced many first-time buyers to the sidelines.
The big fear was that panicked investors, who are believed to account for at least 30 per cent of new condo purchases, especially in Toronto’s core, would flood the already shaky market.
Instead, most seem to be renting their units out. So far they’ve been able to command hefty rents, especially from the growing number of young professionals keen to live downtown.
Those rents are likely to flatten out — along with a levelling out of new condo prices — over the next couple of years in the face of competition, as more new units come on stream, notes Hildebrand.
Some 26,500 new condos are slated to occupy this year alone across the GTA, but the actual number is unlikely to exceed 18,000 as project completions get pushed into 2014 or beyond because of a lack of construction crews, an ongoing bottleneck that has had the intended effect of keeping a lid on supply.
“Projects that are well priced and located are still doing very well,” he adds, noting that some “highly anticipated projects” launching in the next few months could see sales improve by years’ end.
Developers are now looking to hopeful signs on the resale condo front, says Hildebrand, where sales were up 9 per cent in the first three months of 2013, over the final quarter of 2012, after months of double-digit declines, seen as the first real indicator that consumer confidence may be picking up.
Resale prices, however, didn’t fair as well, down 0.5 per cent in Q1 of 2013 over Q4 of 2012 to $533 per square foot. That’s largely because of a more than 25 per cent surge in listings as about seven per cent of newly completed units were listed for sale, according to Urbanation.
2 Sit in a bathtub before buying it.
3 Select durable flooring.
4 Hang a stylish mirror.
5 Use found space.
6 Build a shower area.
7 Share space for added function.
8 Design lighting that works.
9 Buy a quality toilet.
10 Incorporate luxury into your room.
*8 ounces short pasta (elbows, cavatappi, etc)
*1/4 cup soft butter
* 2 cups fresh ricotta
*Fresh ground pepper
1. Cook pasta in heavily salted water until al dente. Reserve 1 cup of cooking water and drain. Return to pot.
2. Add butter and stir until butter is melted. Add ricotta and stir gently until ricotta is worked into the pasta.
3. Pour a little pasta water into the pot until you have a very light sauce.
4. Divide among plates. Grind fresh pepper on top, scatter basil leaves on each plate and serve.
May Events In Toronto
~ Doors Open Toronto ~ When: May 25 – 26 Location: Toronto Visit Official Site
~Contact Photography Festival ~ When: May 1 – May 31 Location: Toronto Visit Official Site
|In this issue:
April 3, 2013 — Greater Toronto Area REALTORS® reported 7,765 transactions through the TorontoMLS system in March 2013 – down 17 per cent compared to 9,385 transactions in March 2012. While the year-over-year dip in March sales followed the trend that has unfolded since mid-way through 2012, it is also important to note that the Good Friday holiday was in March this year versus April in 2012. Generally speaking, there are fewer sales reported on statutory holidays and weekends.
In the first quarter of 2013, sales amounted to 17,678 – down by 14 per cent compared to Q1 2012.
“Home ownership remains affordable for a household earning the average income in the Greater Toronto Area. There are many willing buyers in the marketplace today. While some households have put their decision to purchase on hold as a result of stricter lending guidelines or the additional Land Transfer Tax in the City of Toronto, other households simply haven’t been able to find the right house due to a shortage of listings in some market segments,” said Toronto Real Estate Board President Ann Hannah.
The average selling price in March was $519,879 – up by 3.8 per cent compared to March 2012. The average price in Q1 2013 was $508,066 – up by 3.2 per cent compared to the first quarter of 2012.
“The average selling price and the MLS® Home Price Index Composite Benchmark was up on a year-over-year basis across most home types, especially in the low-rise market segments where supply remains an issue. TREB’s average price forecast for 2013 remains at $515,000, representing a 3.5 per cent annual rate of growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Many people think being a landlord and investing in real estate is a way to make easy money. It can be financially rewarding if you do your homework and reduce your risks. But easy, it isn’t and it can lead to financial ruin if not done properly.
Moneyville columnist Alison Griffiths wrote about her adventure as a landlord earlier this year. It’s a humorous look at what can go wrong and the lessons learned, but anybody thinking about an investment property might want to read: Why did I think being a landlord was easy money?
The trick is to end up with money in your pocket at the end of the month after paying your bills and collecting the rent as you slowly pay down the mortgage and end up with a nest egg.
Here are some tips:
• Research the area where you’d like to buy. Is it in decline or on the way up? A good indication is if chains like Wal-Mart, Tim Hortons and Home Depot are moving in. These companies do a lot of work on demographics and income before deciding where to locate. You can get a big picture look at vacancy rates at settlement.org, a federally funded site that helps immigrants with information and resources to settle in Canada.
• Use a real estate agent who also is an area investor. Ask them to show you their properties and the rents. Ask for the names of other investors they have helped. Call them. Make sure they have a team of professionals you can use, such as property managers, insurance advisers, mortgage brokers, home inspectors, accountants and lawyers.
• Once you own more than four rental units, find a reliable property manager. You don’t want to take a call in the middle of the night. A rule of thumb is that you should allocate up to 10 per cent of monthly rent to a property manager. They will make sure your building is properly maintained and can help find tenants.
• Do not be in a hurry to rent a vacant unit. Take your time to qualify any potential tenant, since it can take months to evict a problem tenant. Call all tenant references, ask for a current pay stub and speak to at least two prior landlords. Where possible, require the tenant to pay for utilities. The tenant will have to apply to the utility company for an account, which amounts to an extra credit check being done by the utility company.
• Be careful with basement apartments and homes rented to students. Although these units can provide additional income, you must make sure that they are legal, comply with the fire code and have any required licenses to operate.
• Buy and hold your property for the long term. This way, you have an income and slowly start to pay down your mortgage.
• If you are investing with others, have a partnership agreement. Problems may occur later if the friendship breaks down, especially if one partner loses their job and cannot pay their share of expenses, or if one partner wants to sell while the other does not. With a partnership agreement, you can provide what will happen in these situations in advance, without having to pay costly legal fees to figure it out later.
Investing in real estate is not easy. But by taking the proper precautions, it can be very rewarding.
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For the common room, you can choose a tile that has a smooth texture and has a motive to support the aesthetic. For example, for the living room and family room, you can choose the type of mosaic tiles.For a more personal space like a bedroom, you can more freely choose the type of ceramic tile. However, you should make sure that the tiles you will use have a color matching and theme carried in the outdoors to bring comfort.Tiles with monochromatic colors, for example, the most appropriate if placed in a room that is not so large to cause a feeling of space. For a large room, you can more freely decide what type of tile with a variety of colors and motifs.For the kitchen, for example. Because the room is easy to get dirty, you’ll want to select a tile that has a smooth surface for easy cleaning. We recommend that you do not choose a quarry tile, because tiles are not suitable for the kitchen because of easy to absorb dirt and stains.Specifically in the bathroom, you can choose a non-slip rough glazed tiles. These tiles can help reduce the risk of accidents in the bathroom because the floor is slippery. Meanwhile, in the area outside the home, such as the terrace, you can choose a tile that is relatively resistant to weathering.
April Events In Toronto
~ Toronto’s Bridal Show ~ When: Apr 19 – 21 Location: Direct Energy Centre
Visit Official Site
~Green Living Show ~ When: April 12 – 14 Location: Direct Energy Centre
~Business Franchise and Investment Expo~ When: Apr 27 – 28 Location: International Center
~ The Mississauga Lifestyle Home Show ~ When: Apr 18 – 21 Location: Hershey Centre
Public Secondary Schools
Rank in the most recent five years
Rating in the most recent five years
|32/725||54/691||Gordon Graydon Memorial||Mississauga||8.4||8.1|
Catholic Secondary Schools
|2011-12 Rank||Rank in the most recent five years||School Name||City||2011-12 Rating||Rating in the most recent five years|
|16/725||17/691||St Aloysius Gonzaga||Mississauga||8.7||8.6|
|39/725||89/691||St Francis Xavier||Mississauga||8.3||7.6|
|121/725||108/691||Our Lady of Mount Carmel||Mississauga||7.6||7.5|
|193/725||141/691||St. Joan of Arc||Mississauga||7.1||7.3|
|193/725||264/691||Father Michael Goetz||Mississauga||7.1||6.7|
March 5, 2013 — Greater Toronto Area (GTA) REALTORS® reported 5,759 sales through the TorontoMLS system in February 2013 – a decline of 15 per cent in comparison to February 2012. It should be noted that 2012 was a leap year with one extra day in February. A 28 day year-over-year sales comparison resulted in a lesser decline of 10.5 per cent.
The average selling price for February 2013 was $510,580 – up two per cent in comparison to February 2012.
“The share of sales and dollar volume accounted for by luxury detached homes in the City of Toronto was lower this February compared to last. This contributed to a more modest pace of overall average price growth for the GTA as a whole,” said Toronto Real Estate Board (TREB) President Ann Hannah.
“Stricter mortgage lending guidelines that precluded government backed mortgages on homes sold for over one million dollars and the City of Toronto’s additional upfront land transfer tax arguably played a role in the slower pace of luxury detached home sales,” added Ms. Hannah.
The MLS® HPI Composite Benchmark price covering all major home types eliminates fluctuations in price growth due to changes in sales mix. The Composite Benchmark price was up by more than three per cent on a year-over-year basis in February.
“We will undoubtedly experience some volatility in price growth for some market segments in 2013. However, months of inventory in the low-rise market segment will remain low, resulting in average price growth above three per cent for the TREB market area this year. Our current average price forecast is $515,000 for all home types combined in 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
TORONTO, January 11, 2013 — Greater Toronto REALTORS® reported 3,830 condominium apartment sales through the TorontoMLS system during the fourth quarter of 2012. This number represented a decline of 23 per cent compared to 5,005 sales during the same time period in 2011.The average selling price for condominium apartments in the fourth quarter was $332,410 – down by one per cent compared to the fourth quarter of 2011. “The condominium apartment market was the best supplied market segment in 2012.
Strong condo apartment completions in 2011 and the first few months of 2012 resulted in a substantial number of new listings on the TorontoMLS system last year.With more units for buyers to choose from, the annual rate of price growth moderated,” said Toronto Real Estate Board (TREB) President Ann Hannah.In the condominium apartment rental market, transactions rose by almost 13 per cent year-over-year in the fourth quarter, while the number of units listed for rent increased by over 17 per cent. Average rents were up on a year-over-year basis for one-bedroom and two-bedroom apartments.“While some first-time buyers put their decision to purchase on hold in the fourth quarter, many of these people chose to rent a condominium apartment instead.
Similar to the ownership market, strong new condo completions prompted a considerable increase in the number of investor-held units offered for rent. However, there was still enough competition between renters to prompt upward pressure on average rents,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.