Affordability in the Housing Market

Source: http://www.anthonydidonato.net/

With a high demand for single family homes the prices in the GTA are on the rise decreasing the markets affordability. A recently released RBC’s Economics Report backs this up claiming that the high demand in Toronto makes it a seller’s market. To own a detached home in Toronto it costs more than 50% of a pre-taxed household income. 

Despite Vancouver’s housing market cool down it still is relatively overheated. Vancouver remains Canada’s hottest real estate market up 3.1% since the year’s previous quarter.

Source: http://www.moneyville.ca/article/1201935--toronto-housing-affordability-slipping-rbc-study-says?bn=1#.T8TW3SDQ4mA.twitter

Real Estate in Toronto: The New Normal

Source: http://www.torontocitycab.ca/

A lot of Canadians are in awe of the new condo craze sweeping areas of our country, with condo starts and sales at record highs in Toronto its important to look at why this is all happening and what its effects are if any.

To start let’s talk about why condos are the hot ticket in real estate these days. Well, apart from the demand for condos from single women it seems to be a combination of population flow and government policy. First, of all Toronto and the GTA’s population is on the rise, there is high flow of new residents to the area then before causing a need for housing. Second, there has been provincial policy implemented in Ontario that directs new housing to be built “up and not out”. This directs new housing that can be built in a high rise fashion, such as condos, to increase.

Now the effects of the condo sales and starts. Well, one of the major effects is the shift in high-rise versus low-rise unsold inventory in Toronto. Unit inventory at the end of a month as recorded by RealNet was previously dominated by low-rise homes with their accounting for 65% of builder’s inventory. Today, this number has flipped with high-rise inventories at a record high representing 74% of builder’s inventories.

It is clear that the GTA is experiencing a shift in its available real estate and rather than continually being surprised by the “condo craze” we just may have to accept the high-rise phenomenon as the new status quo.

Source: http://www.yourhome.ca/homes/newsfeatures/article/1193053--understanding-the-new-normal-in-the-housing-market

GTA Apartment Valuations

Source: http://t0.gstatic.com/images

It looks like apartment buildings valuations will continue their upward trend in 2012. Since the 1998 easing of government rent control landlords have raised their prices. These valuations are consistent with the GTA market where the Vaughn/King/Richmond Hill area was ranked highest in the ranking for top cities for apartment investment. In Markham there are 20 times more apartments than in the actual city of Toronto. This high rate of apartments in Markham and especially in the northern GTA is a results of high rates of population growth in the area. With an uncertain stock market investors are turning towards the apartment industry for their portfolios. Despite this increase in valuations and investment in apartments, especially in the GTA, the condominium market continues to grow at a higher rate.

Source: http://business.financialpost.com/2012/05/22/apartment-valuations-set-to-keep-rising-in-2012-report/

CREA on the Housing Market

Source: http://www.mutualfund.ca/

With the rest of the country’s housing markets leveling out Toronto’s hot housing market continues to bring the country’s real estate price average up. In April, the Canadian Real Estate Association (CREA) reported a 5.2% increase in the home price index led by Toronto. Other previously overheated housing markets such as Vancouver and Calgary are shown to be moderating in the latest CREA data. Though overall the country’s housing market looks like its cooling certain housing types are becoming more popular across the board, for example townhouses are accelerating in sales, especially in the West. And, of course condos are remaining popular as a housing type and are contributing in raising the home sales and prices stats.


Source: http://www.canadianrealestatemagazine.ca/index.php/news/item/1198-to-tugs-national-home-sales-higher

Canadian Condos: What Women Want

Source: http://winnipegwomen.net/

Condo’s are increasingly popular among single women, and we’ve talked about this phenomenon before but it's time to look into what condo investors are doing to attract this demographic of avid buyers. Single women now account for 20% of real estate sales in the country and 30% of condos sales. The high amount of women in the market for condos condo owners and investors are increasingly molding their properties to the wants and needs of single Canadian women. To attract this market condo investors are adding security features to their condominiums such as security cameras, good lighting, and a concierge. Another pull factor for women towards condos is buildings with high “walk scores” with all the necessary amenities within walking distance and the availability of nearby public transit. As well extras like closet space and high quality kitchen finishes and appliances. With these preferences in mind condo builders and investors are keeping tabs on what women want to get a piece of this lucrative market.

Source: http://www.canadianrealestatemagazine.ca/index.php/news/item/1199-sex-appeal-where-condo-investors-spend-to-attract-single-women

Weekend Home DIY Projects

Source: http://cn1.kaboodle.com/

The weekend has come again and with that we’re going to put the spotlight on some DIY ideas you can work on this weekend at your home. A little weekend project not only gives you something to do, or something for you and your family to do, but it also makes you feel productive and adds a new and improved touch to your home.

1. Skateboard Shelf: If you or your kids have an old skateboard lying around don’t throw it away there’s an unexpected use for it that you can make happen! Just remove the wheels with a screwdriver and attach shelf clips and mount clips to the wall with anchors!

2. Curtain Rod: Organic curtain rod? Why not? Take a birch branch either from outdoors or a flower store and cut it down to fit the window width plus a few extra inches. Attach it above your window with drapery brackets and you’re good to go.

3. Kitchen Backsplash: Add a backsplash to your kitchen to upgrade your space yourself. Use ceramic mosaic tiles and a ready-to-use adhesive. After your measure the area of your kitchen you want tiled remove all switch plates and outlets from the area. Spread your adhesive to the wall and arrange your tiles, add grout and then leave overnight to dry!

4. Pillow Decor: About to throw out your old pillows? Make what’s old new again by adding a touch of lace. Buy some fabric doilies in varying sizes and arrange them on your pillow, use white thread to attach the doilies, you only need to sew in a few places, or if you don’t sew you can use fabric glue. Let dry if you used glue and enjoy!

Buying a Home: Making an Offer

Source: http://realtyexecutives.com/

Last week we went over how first time buyers should go about purchasing their first home. But we’ve just scratched the surface. Today we’re going to go in depth into the “making an offer” part of buying your first home (though this applies to buying your second, third, fourth home etc.).

As we talked about last week finding the perfect house is only the tip of the iceberg. Your next question is how much to you bid on the house? Prices are often both over and under priced so their asking price isn’t necessarily the magic number. To evaluate how much to bid on the house look at recent sales of similar homes in similar neighbourhoods. Once you’ve done some research decide how how are you willing to go at the end of the day. Once you’ve got this intel make a bid!

Once your offer is accepted by the owners get the amount you’re paying in writing. Usually a real estate agent can provide an offer sheet which you as the buyer will sign. A real estate lawyer can provide this as well. The document should include the purchase price, deposit amount, the closing date, the move in date, and any conditional elements to the deal.

Once everything is in writing you should have your deposit ready to fork over. This deposit cheque should be made out to a third party not the home sellers themselves.

As is clear making an offer is not where the transaction process ends. So it’s important that you are well informed on what steps need to be taken to make an offer official and legal.


Source: http://www.moneysense.ca/2012/04/05/making-an-offer/