Thursday, November 17, 2011

TREB and GTA REALTORS Mid-November 2011 Resale Housing Market Figures

GTA REALTORS® Report Mid-Month Resale Housing 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.

“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.



Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, November 14, 2011

Discounted commission rates and the buyer agent commission

I had an interesting question from a buyer. Below is the question and my answer.
Mark


Hi Mark,


Thanks a lot for the very informative email. The house I am considering selling our house, if the buyer's agent gets 2.5% commission isn't the buyer then responsible to pay the HST on behalf of their real estate agent?


Thanks,

MA


Hello MA


Even though the buyer's agent represents the buyer, 99.9% of the time (I'm guessing that maybe 1 in 1000 transactions the buyer may pay the commission to the buyer's agent) the agreement is that the listing agent pays the buyer the buyer's side of the commission and this is why the total commission to the seller is 5% or at least the buyer's agent side comes out of the total commission that the seller pays.

This is the way that it's set up in Ontario and it continues to work well.



In the US and other parts of the world the buyer's agent does get paid through the buyer, but in those cases or areas the lenders and banks need to be 'on board' and assess the property 2.5% (plus HST) higher than the price that the buyer pays in order for the buyer to pay the buyer's agent side of the commission, and it can become complicated.

This is the main reason why the commission split is similar to the way we have always done it even though the buyer's agent represents the buyer, the seller still pays the total commission.

Some Ontario lawyers have a problem with this, but let's not get into that!
:-)

All the best!
Mark

Friday, November 11, 2011

What happens if I want to break my lease?

I had a question from a tenant about breaking a lease and wanted to share my answer with you.

What happens if I want to break my lease?

The question was: I wanted to ask you what are the consequences to breaking the lease? I didn't see anything specific on the lease we have with the landlord and wanted to know.

Thanks

J

My answer was:
Hi J,

There are a few options available to you.

Typically, you can't break a lease, unless you and landlord agree to penalty which is typically 2 months rent. I've even seen more than this amount, but 2 months is typical. The reason for a penalty is that it causes much aggravation for the landlord plus the landlord needs to re-rent the unit and this typically costs the landlord one month rent plus 13% HST on the one month commission so the landlord needs to recover their costs to re-rent the unit.

The whole point of you signing a 1 year lease or longer is so that you have 'security of tenancy' meaning that you cannot be removed from the unit during the term of your lease (unless for something like a flood or fire or extreme emergency major renovation, but you still have first right to re-enter the unit once it's ready) AND your rent is fixed for the duration of the term. These are two very important points in your favour as a tenant.



There are many others, but these are the major reasons for a fixed term lease.


The other option to get out of your lease is to assign the lease to someone else who will live in the unit or for you to sublet the unit to someone else. If you find a tenant who wants to live in the unit for the balance of your lease and the landlord agrees to accept that new tenant (after a credit and reference check) then that person can move into your unit and the new tenant will pay the landlord, this is s sublet. You are still ultimately responsible for the rent payment if the person who sublets doesn't pay, but that doesn't happen too often.

If you assign your lease to another person and they move into your unit, then your lease is void and you are not responsible any time in the future.

If you leave in the middle of your lease, the landlord can easily take you to court, even if you don't attend court, they will obtain a judgment in favour of the rental amount and the landlord can serve that judgment on your place of work and garnish your wages. They can also lien your vehicle and other remedies, I'm not an expert, but these are some of the options available to the landlord.

If you absolutely must break your lease, the best course of action is to give plenty of notice, pay a penalty for breaking the lease early and move on OR stay to the end and give your proper notice.

I hope that this helps!

Please let me know if you have any other questions or require further information.

Thank you,

Mark

 

Thursday, November 10, 2011

Greater Toronto REALTORS reported prices up 8 per cent year over year Toronto MLS in October 2011

This is the latest news from the Toronto Real Estate Board on Average sales
volumes and prices, market is very healthy!



Pace of Home Sales Remains Brisk in October

November 3, 2011 -- Greater Toronto REALTORS(r) reported 7,642 home sales
through the TorontoMLS(r) 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 benefitted from
increased supply in the fall."

The average selling price through the TorontoMLS(r) 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."

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Wednesday, November 09, 2011

FW: China's Rich

Hi

Interesting trivia tid bit...

There is 960.000 people in China worth more than U$ 1.000.000.
(There are now approx. 272 Billionnaires).

Oddly enough, more than 46 % intend to immigrate.

Reason: There are worried about the security of their assets.

Immigration choices: # 1 - United States, # 2 - Canada.


Let's hope that they all want to invest in real estate in GTA!!

Mark

Tuesday, November 08, 2011

REMAX Report for Greater Toronto Area since year 2000

This is directly from the RE/MAX report on the GTA sales since 200, very interesting trends!

While a surge in new home construction and renovation has buoyed residential housing values across the Greater Toronto Area since 2000, single-detached homes in core neighbourhoods have experienced the greatest pressure on pricing in the past decade.

Overall average price in the GTA climbed from $243,255 in 2000 to $431,463 in 2010-an increase of just over 77 per cent (despite an expanded trading area).

Price appreciation has been more pronounced in Toronto district's C01 through 15,E1 through 3, and W1 through 10-where a single-detached home has appreciated by as much as 111 per cent(C11 - Leaside). From 2000 to 2010, residential building permits rose to just over $77 billion-more than doubling values posted in the previous decade.

Close to $6 billion was spent on building permits for renovation purposes during the same period, just a fraction of what is actually attributed to renovation spending in the GTA over the past decade. Infill ll has been a major driver. As such,the landscape of entire communities has changed over"From 2000 to 2010, the value of residential building permits rose to just over $77 billion."

the last decade, as larger homes and townhouse developments replace bungalows, storey-and-a-halves, and two storey properties. The trend is evident throughout the Greater Toronto Area-from Oakville to the Beach and all points north. Even the most prestigious addresses can present redevelopment opportunities-the Bridle Path is case in point where many of the smaller ranch-style bungalows sitting on two and three acres lots have been demolished to make way for 18,000 sq. ft. mansions.

With a disposal bin on what seems like every second driveway, homeowners have also been on a renovation tear in recent years. Approximately 35 per cent of the city's owned housing stock (Statistics Canada) was constructed prior to 1970. While maintenance and repair are a given for many, some buyers are taking their homes to the studs.The Greater Toronto Area is growing-and nowhere is that more evident than in the core. Sales of single-family dwellings have increased 54 per cent in the last 10 years,rising from 18,405 sales in 2000 to 28,387 in 2010.Condominiums have been in large part responsible for the upswing in sales - with renewed focus on higher density development in downtown Toronto.

Sales in C01 alone-the vast majority of which are condominium apartments and townhomes-have experienced a 212 per cent increase in the number of units sold between 2000 and 2010. With prices of single-detached product rising across the Greater Toronto Area, condominiums now represent the first - step to homeownership.

Trendy new condo enclaves have resurrected tired, older communities and given them a new lease on life. King St.West is leading the way, with Queen St. in hot pursuit.While affordability has driven the condominium lifestyle to a large extent-affluent empty nesters and retirees have been drawn to prestige developments in the city, including but not limited to the Ritz Carlton Residences, the Four Seasons Residences, the Hazelton,Shangri-La and the Trump Tower.

The most expensive sale - condo or single-family-has been the penthouse of the Four Seasons, with a sale price of $28 million-shattering all existing records to date. And while there are thousands of units coming on-stream in the year's ahead, absorption is not expected to be an issue.

Apartments that are not occupied by end users will likely end up in a rental pool. Vacancy rates in the city are trending lower, population is on the upswing in the GTA-rising almost 10 per cent from 2001 to 2006 and climbing,and new rental apartments are few and far between.

The future is bright for residential real estate in Canada's largest centre.

Economic fundamentals remain sound,with GDP growth expected to improve, and employment numbers on the upswing. Interest rates are forecast to remain stable, which should also serve to bolster homebuying activity in the months ahead. With inventory levels tighter than usual, continued upward pressure on pricing is a given.

Who says we are in a bubble? It appears to be real growth and the trend is continuing into this decade too!


I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Monday, November 07, 2011

I wish I would have taken his advice starting 25 years ago!

Unfortunately, I began investing in the stock market with my RSP's beginning
in 1981 and have contributed as much as I could over the past 30 years into
my RSP's. I checked the value last week and my entire RSP portfolio and the
returns are bleak, absolutely terrible. And these are all 'quality' mutual
funds. Ya right.

Every time I had 20% downpayment I should have purchased an investment
property rather than putting money into my RSP's I too "bought in" to that
philosophy, too bad. You can bet my son's won't follow my footsteps on this
one!

Read below what RE/MAX is showing as increases of house prices very RSP's,
you will be shocked!

Housing evolution driving average price appreciation in Canada's major
centres


Mississauga, ON (November 7, 2011) -- Billions spent in new construction,
renovation, and infill over the past decade have contributed to a serious
upswing in the calibre of Canada's housing stock, propping up residential
average price in the country's major centres,
<pdf housing report> according to a report released today by RE/MAX (pdf).

Since 2000, the value of a Canadian home has doubled, rising from $163,951
to $339,030 in 2010. Nowhere has the upswing been better captured than in
both the value of residential building permits issued nationally between
2000 and 2010 - at $340 billion - and the estimated $450 billion spent in
renovation. The impact of these two forces alone has fuelled the Canadian
residential real estate market - as well as the construction industry - for
more than 10 years.

As a result, investment in Canada's housing stock is at an all-time high in
the 16 Canadian residential real estate markets examined in the RE/MAX
Housing Evolution Report. Higher quality housing translated into
extraordinary price appreciation across the country - with 62 per cent (10
markets) experiencing increases in excess of 100 per cent since 2000.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Friday, November 04, 2011

Mortgage Interest rates in the GTA and Mississauga

Best mortage interest rates on the market today:

Term Our Rate Bank Rate
3 Yr Fixed 2.69% 4.25%
5 Yr Fixed 3.19% 5.35%
Variable 2.60% 3.00%

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Thursday, November 03, 2011

Sherriff sales do they sell for market value or a deep discount?

I had a question about a Sherriff sale and thought I would share my answer
with you.

The question was:


Hi Mark

Can you tell me please if you are familiar with the properties that are sold
by the Sheriff when he home owners lose out to banks or credit card
companies in hard times.

Typically do such properties go for market value or is there a possibility
that they can be had for a steep discount.

Many Thanks

H.



My answer was:

This is a good question. A Sherriff sale is almost always sealed bidding,
so not too many details are known, except final winning bidder price.
Typically a Sherriff's sale will attract people from all over the area or
province.

If it's in a city, my understanding from speaking with people who have
attended recent Sherriff sales is that the properties sell for about what
they are worth, meaning at or near market value. Sherriff sales are
typically properties that are inaccessible, have structural, mould, fire or
other major problems or that the land is unusable because it is swamp or
inaccessible by road or any other type of major impairment that affects
market value.

If the Sherriff sale is for a 'regular' city type of property, as long as it
does not have any major deficiencies, then it will likely sell for about
market value. I would recommend that you attend a Sherriff sale to see the
dynamics and familiarize yourself with the process and to get a feel for
what happens at the sale.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Wednesday, November 02, 2011

Current posted and acheivable mortgage interest rates on the market in the GTA

Below are the current posted and achievable mortgage interest rates on the
market in the GTA

TERM POSTED BEST RATES*
6 Month 4.45% 4.45%
1 Year 3.6% 2.75%
2 Year 3.95% 3.04%
3 Year 4.35% 3.09%
4 Year 5.04% 3.09%
5 Year 5.54% 3.29%
7 Year 6.44% 4.49%
10 Year 6.8% 4.79%
Variable Rate 2.8%
Prime Rate 3%
Cost per $1000 $4.88















I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm