Since starting in real estate back in 1980 I’ve seen many ups and downs of the Toronto market over the years – booms, busts and lots of in between.

Almost New Downtown Toronto One-Level 2-Bedroom Suite

In the ‘old days’ before the early 2000’s a traditional Toronto summer house and condo market meant a slow-down of activity and sales… listings would decline, buyers would relax on vacation or stay in because of the heat. 

That all changed over the past several years as increased buyer activity kept the market momentum going strong through the traditional ’slow periods’ of summer and December/January.

However I think buyer fatigue from all the manufactured multiple offers and market frenzy of this spring has caused us to revert to a more traditional summer market!

As of mid-July the Toronto Real Estate Board reported 2,790 sales, down 37% from the same period in 2009.  The average sale price for the period was $427,931 – up a modest 8% from a year ago and down 1.7% from the June 2010 average price.

The listing inventory is 22,886, down slightly from June but up 27.4% over July 2009.

Critically the bellweather ratio of sales-to-listings dropped into neutral market territory for the first time since March 2009 – at mid-month it was at 25.4% (24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market).

Thus, for the first time in 15 months buyers have a much better opportunity to negotiate an excellent price for themselves.  Sellers who are moving up or down in the market still benefit on their buying side of the move.

The Bank of Canada moved the bank rate up 0.25% this past week bringing the regular bank’s prime rate up to 2.75% – still very modest.  With many institutions offering Prime minus 0.6% for a variable mortgage, that rate now sits at just above 2%.  Five-year fixed mortgages can easily be had in the low 4’s.

July Toronto Real Estate Market Showing Signs Of A Traditional Summer (For A Change) is a post from: Toronto Real Estate Updates

It seems Toronto is never going to get a break from this heat. Sure, the Weather Network promises a nice thunderstorm with torrential downpours day after day, but she’s just teasing. Many Toronto homeowners will take to using air conditioning in order to cool off or get a decent night’s sleep. Smart homeowners also know that the smallest crack or opening will seriously lessen the efficiency of their air conditioning unit, and will seal up their homes to prevent their precious cold air from slipping out through drafty windows.

Hidden mold found after a Toronto homeowner started feeling ill, right after shutting all the windows and turning on the air conditioner.

If within weeks of sealing up your home and cranking up the air conditioning, you begin to feel a little funny… you might have a mold problem. You can’t see it, but it might be hiding within the walls, especially if they’re made of drywall and your home has experienced any kind of leaks, flooding or water damage in the past. Older homes, new homes and impeccably spotless homes – mold does not discriminate.

Symptoms of a mold infestation can vary greatly from person to person. You may have traditional allergy symptoms like watery eyes and a runny nose, or very serious symptoms that don’t make any sense, like a very sore throat and trouble breathing.

An indoor air quality test can help you determine whether you have a problem or not. Some mold can be toxic, while some is merely an irritant or is completely harmless. If air quality testing is done and finds mold, samples can be sent to a laboratory to determine what you’re dealing with and what kind of action needs to be taken.

It’s important to act on your intuition if there seems to be a problem, because repeated exposure can lead to asthma or extremely severe allergic reactions that require hospitalization.

Indoor air quality testing also has another added bonus for home sellers: home buyers are becoming increasingly concerned about their indoor air quality, and it’s one of the criteria required for LEED certification in new buildings. A recent indoor air quality assessment (whether it comes up clean or you can show action has been taken to rectify any problems) will tell prospective buyers that you and your home are on the “green” side. Mold is also a hidden defect that needs to be disclosed to future buyers to avoid serious problems down the road.

Over-Sealing Your Toronto Home to Conserve Energy? Get An Indoor Air Test is a post from: Toronto Real Estate Updates

The past few weeks have seen a balanced real estate resale housing market in the Greater Toronto Area and much of Canada, which typically favours buyers. What does that mean, and why?

Selling or buying in Toronto? Right now, buyers have a bit of an edge. Make it work for you!

Sellers

Sellers may have to work a little bit harder in the coming weeks in order to give buyers what they want because of the balanced market. It also means making sure that the price of a home is suitable for the market, not a bit higher than it should be to see if they can get a little more than it’s worth.

As a seller, working closely with a real estate agent during the process is most beneficial in a balanced market, because a properly staged and represented home is key in order to appeal the most to buyers. Being as accommodating as possible is also important, even going as far as to undergo home inspection and make those repairs yourself.

Buyers

Buyers are the lucky ones and will have more time to fully research the homes and neighbourhoods that are best for them, as well as make their purchase conditional on the results of a home inspection and obtaining proper financing for the value the home is appraised for. Buyers also have the room to make sure their own home is sold in time, and can make their offer to purchase conditional on their home being sold within a certain time frame.

While these options are always available for buyers and sellers to toy with, in this type of market the sellers are more likely to be happy to help you out with your request, giving the buyers the advantage.

So don’t hesitate to discuss your situation with your real estate agent, because they can explain to you where exactly you fit in and what your options are.

Buying Or Selling Real Estate In Toronto? is a post from: Toronto Real Estate Updates

A home inspection in Toronto typically costs between $300-450 dollars.  It’s a small price to pay for the peace of mind you’ll get as a buyer.   The renovations necessary after unknowingly purchasing a home that has severe mould issues, broken furnace, leaky roof or shoddy foundation can run into the tens of thousands of dollars.

When buying a Toronto resale home, it is imperative that a home inspection is conducted. A home inspection can also benefit the home seller by protecting them from legal troubles down the road.  Remember though – don’t hire your cousin Fred – he doesn’t have errors and omissions insurance to protect you in case the inspector misses something!

Latent Defects Versus Patent Defects

Avoid Buying A Home With Foundation Issues - They're Typically Too Costly To Remedy

In Canada, property disclosure laws are fairly relaxed, and they definitely stress the age old saying “buyer beware”. To understand more about this, we need to realize the difference between patent and latent defects. 

A patent defect is something that is obvious to the naked eye. This includes mould that is seen when touring a home, things that are clearly broken and visible imperfections. A latent defect is something you cannot see, such as a basement that has a tendency to flood, a leaky roof or hidden mould that lies in wait behind walls or under the carpet.

A seller does not have to mention anything about patent defects as you should be able to see them for yourself. A buyer can, however, include a clause in the closing agreement that it must be fixed – if the buyer indeed catches it in time.

A seller who knows of a dangerous latent defect can find themselves in serious legal trouble if they fail to disclose them to the buyer. “Dangerous” means that the defect presents a serious safety hazard or the home is rendered unlivable. Other latent defects that are less serious to personal health should still be disclosed, like flood issues.

Psychological Defects

Many home buyers and sellers wonder if one needs to disclose if something traumatic occurred within the home, such as a murder or a suicide. These properties are referred to as “stigmatized properties” and these occurrences are called psychological defects and they do not have to be disclosed as they have little bearing on the functionality of a home. Meaning, if there was a murder within the home, the likelihood that the home would experience another one is very small and this poses no danger to the buyer.

On the other hand, a famous story in a USA Law Journal published a case where the sellers had publicized their house as being haunted and when the buyers discovered their house did in fact appear to be haunted, they won their deposit back. According to the state Supreme Court, the house was legally haunted because the sellers said so.

Regardless, most savvy homeowners will research a neighbourhood before buying, and they will likely find out about anything unsavory beforehand anyway. Neighbours might also inform them that they live in “the murder house” as neighbourhood lore can become legendary after enough time passes.

Seller’s Property Information Statements

A Seller’s Property Information Statement (SPIS) can be filled out, but is not offered as a guarantee to the buyer. They are normally completed to the best of the seller’s ability and knowledge to inform the buyer of any problems that might exist with the home. If a problem isn’t visible or known to the seller, there is very little recourse later on for the buyer.

The law tends to treat these instances on a case-by-case basis. If it can be proved the seller knew about latent defects at the point of sale, they can be sued. But if the seller discloses issues with latent defects, such as a leaky basement that turns out to be an issue much more frustrating than the buyer originally thought, the seller might be free and clear for having provided proper disclosure.

In Toronto when we’re representing a buyer, we always include a request in the offer for the seller to provide us with an SPIS.  But I can say that in about 99% of accepted offers the seller will strike out the clause and not provide it.  Why?  In their opinion there’s too much liability and the seller’s lawyer will say “Get a home inspection”.

Caveat Emptor – Buying A Toronto House Without A Home Inspection is a post from: Toronto Real Estate Updates

Many Ontario homes use fuel oil when propane and natural gas are not viable options for heating in the area. These homes will normally have an oil tank somewhere on the property, and when preparing to sell your home it’s a wise investment to have the tank inspected and to know how old it is. 

An important distinction is that oil tanks can be either above ground or underground, and each type of fuel oil tank requires a different set of specifications. The average life expectancy of an underground oil tank, for example, is somewhere between 10-15 years, and at 20 years the risks of leaking increases significantly.

There are no current laws or regulations that state an oil tank must be replaced by a certain age if it’s not leaking, but the Government of Ontario recommends replacing oil tanks that are more than 30 years old. There are however, regulations stating that underground oil tanks must be updated if they’re a certain age. 

Above Ground Oil Tanks 

Above ground oil tanks installed in Ontario after 1971 should have an Underwriters’ Laboratories of Canada (ULC) label. Having a ULC certification is required by law, however oil tanks installed before 1971 have been grandfathered in and are approved for use anyway. This label will also contain manufacturer’s information, and if the age of the tank is not identifiable by looking at the label, the manufacturer can be contacted to ask about the age of the tank.

Typical basement oil tank

If the oil tank was installed after 1971 and does not have a ULC certification label, it needs to be replaced with a certified tank. The ULC label or plate is usually on the top half of the tank and should be clearly visible. The ULC can also come and certify the tank so oil distributers can supply the tank with oil. Without certification, oil distributers are prohibited by law from supplying oil. The Technical Standards and Safety Authority, which regulates fuel oil tanks in Canada, does not inspect aboveground tanks and oil distributers must conduct a preliminary inspection of all tanks they deliver to.

You can conduct a mini-inspection of your own to get a good idea of what you’re dealing with before paying for a fuel oil tank inspection. Checking your above ground tank for instability or shakiness, rust, wet spots, dents, drips, spills and cracks will provide a decent indication of its overall health. 

If the oil tank was installed in accordance with whatever codes were in place at the time, the TSSA will still consider the tank approved for use despite any subsequent changes to those codes over the years.  

When having an above ground oil tank inspected through an oil tank distributer, there’s not much else you need to do after the inspection takes place. On the other hand, if you arranged for an inspection by a third-party company yourself, a follow-up with the distributer is recommended by the TSSA to ensure everything is on the up and up and that the TSSA and the distributor’s requirements for a functional and safe oil tank are compatible with each other. 

Under Ground – Buried Oil Tanks 

All underground oil tanks must be registered with the TSSA. If it’s not registered, those who attempt to have oil supplied to them will likely receive a notice requiring them to have the tank registered within 90 days. Registering a tank with the TSSA is completely free, and can be done by filling out and mailing or faxing the form in.

Based on an amendment to the fuel oil burning equipment code, underground or buried tanks, depending on their age must have been upgraded by a certain date. The last of those dates, for tanks 0-9 years old, passed at the end of last year and it’s safe to assume that if the tank was not upgraded when the amendment was introduced in 2002, it’s due for an upgrade. 

TSSA registers underground tanks, and they’re inspected during installation. According to the TSSA, this inspection of the entire oil system costs $150 per hour, and the amount of hours depends on the complexity of the system.  

It’s difficult to determine if an underground oil tank is leaking as the same signs that imply an above ground tank might be leaking are not readily visible. A sudden increase in oil consumption may indicate a leak, as well as oil slick rainbows on nearby puddles or streams. A TSSA-registered fuel oil contractor can be contacted to inspect the tank and safely remove any oil that make have leaked. Ontario residents are also obligated to call the Ministry of the Environment Spills Action centre at 1-800-268-6060 in the event of an oil spill. 

There are no set dates for the inspection of a fuel oil tank regarding its age, but oil distributers will carry out an initial inspection before they supply you and are supposed to do one every ten years. If a tank has not been used for two years, it must be removed by a TSSA-registered contractor no matter how old it is. 

Selling Your Home 

If you’re selling your home and have an oil tank, before closing the fuel oil supplier should be contacted and it should be ensured that any inspections necessary have been completed. To obtain an inspection, look in your local Yellow Pages to find a suitable, TSSA-recognized company under “Heating”. 

When hiring a distributer to check the oil system, the TSSA has a sample checklist you can download and print. The homeowner can then make sure that all of these items are covered in the inspection. 

Most buyers’ insurance companies will require that they ask the age, location and inspection history of the tank, and by following the above steps you’ll be able to answer accurately answer any questions. 

What Is This Going To Cost? 

When the inspection of a fuel oil tank is conducted by the fuel oil distributer, prices can vary. Some companies will even do it free of charge, or include it in their costs anyway as they must conduct an inspection before they begin. 

BlogTorontoRealEstate.ca contacted Jay Burley at Eco Metal Recycling, a GTA-based and TSSA-certified and registered fuel oil tank removal company. He told us that around the GTA, the removal of an average-sized residential above ground fuel oil tank in a basement generally costs around $450, and the removal of a residential underground fuel oil tank can run, on average, $4,000.

Site inspections of a fuel oil tank generally cost $349, but if an underground tank needs to be removed this fee is deducted from the total cost. 

Handy Phone Numbers And Websites 

Frequently asked questions about above ground oil tanks and a list of manufacturers.

Sample fuel oil tank inspection checklist  

1-877-682-8772 – The TSSA general line 

More information on removing fuel oil tanks: http://www.ecometalrecycling.ca/Oil-Tank-Removal-Service.aspx 

www.opcaonline.org – The Ontario Petroleum Contractors’ Association, where you can find a TSSA-registered contractor for your municipality for removing a fuel oil tank.

1-800-268-6060 – Ministry of the Environment’s emergency toxic spills 24-hour line.

416-734-3402 – the TSSA Records Department for oil tank property history.

What Buyers And Sellers Need To Know About Homes With Oil Heating is a post from: Toronto Real Estate Updates

See how big this suite is for the money!!

Our Team has just listed a very large (953 sf) one-bedroom suite on Lombard Street just west of Jarvis.

The suite faces south with lots of sun coming in through the den/solarium floor-to-ceiling windows and overlooks a quiet courtyard with fountain.

In addition there are two bathrooms and one underground parking space with locker cage above.

The owners have taken extra good care of their home and it shows!  The building has fabulous concierge service and the roof-top deck is the place to spend some summer nights around the pool!

Take a look at the interior photos, feature sheet and the video to see if this suite is perfect for you!

You can also arrange a showing right from that same page

Lovely, Oversized Downtown Toronto Condo Has Wood Fireplace is a post from: Toronto Real Estate Updates

January 2010 Toronto Real Estate Statistics

With a projected 7,000 plus sales for February, Toronto’s market looks like it will set a record for the month. 

The previous February sales high was 6,866 houses and condominiums changing hands in 2002 although 2006 and 2007 also were within a few hundred sales of this number.

Although the Toronto Star painted January sales as “crazy”, the 4,986 sales were lower than either 2007 or 2008.  They were only ‘crazy’ when compared to the dismal performance in January 2009 when we were at the absolute bottom of the market here in Toronto.

Listing inventory continues to be a problem… we now have the lowest number of houses and condominiums on the market since before 2000… and this is causing Toronto’s market to be extremely busy. 

Condo purchases have been very steady, taking up just over one-third of sales in the past six months.

What about that ‘bubble’ the media is so f0nd of talking about?  The problem is, they’re comparing this year to 12 months ago – an unfair comparison considering the world was imploding then. 

When you compare current 2010 sales to those of 2008 or 2007, the changes are not so dramatic.

Take a look at the chart below.  You’ll see that the average sale price on the Toronto Real Estate Board increased a modest 5.5% annually on average over the last 13 years. 

Compare this to double-digit sale price increases across many US communities in the first several years of the decade – which caused their market to crash and reprice itself.  Unlike the Americans, our busy markets are almost confined to two major cities – Toronto and Vancouver – and this is due to the strong economies, and buyer confidence, in both.

January 2010’s average sale price for condos and houses in Toronto was $409,058, actually down 0.7% from December 2009’s average.  The February 2010 average to the mid-month point was $429,997 – definitely a leap up if it is sustained in the coming months. 

TREB Sale Price Data

 Remember that we hit a high of $423,559 for the average sale price in October of last year which couldn’t be sustained.

We’re certainly seeming some effects from the advent of HST as of July 1st.  Infill home builders are seeing increased sales with deliveries prior to the end of June. 

I’ve had a couple of resale clients tell me they’d like to close prior to the introduction of the HST to avoid the extra tax on the various closing expenses. 

If it’s like the advent of the City of Toronto land transfer tax two years ago, people will be held back for a few months but will soon take the additional costs into account almost naturally and the extra bit of tax will just be another ‘cost of doing business’.

If you’d like to peruse the entire January 2010 Toronto Real Estate Board MarketWatch Report, click here.

February 2010 Toronto Real Estate Board Statistics Predict A Record Month For Sales is a post from: Toronto Real Estate Updates

Thanks to your help, we’ve almost doubled the number of clients we’ve helped in 2009 vs 2008. Of course it helps that we didn’t build a cottage this year – that took, no kidding, almost six months of my time in 2008.

I applaud those buyers who, despite the doom and gloom of the first 4-5 months of 2009, saw the potential and made the plunge to buy a home.

In the March time frame it was looking pretty grim… I remember appraising a client’s home at the time for about $380,000 – $400,000. They found the home of their dreams in early October and we ended up selling their existing home for $489,000 – almost a $100,000 increase.

I did a recent appraisal for a lady who owns a condo down at CityPlace. She originally bought it in 2003 for her home and paid $215,000 but started renting it three years ago as an investment property. I appraised it for $330,000 – $350,000 – an increase of $120,000 + or $20,000 per year. It certainly beats renting!

Of course, during those 6 years, she paid down a significant amount on her mortgage too further increasing her equity position.

Real estate in Toronto has continually proven itself to be an excellent long-term investment. Maybe 2010 will be the year for you.

Here’s our 2009 Year End video message to all of you. Please enjoy and have a safe and profitable 2010.

Thank You For Making Us In The Top 20 Teams For RE/MAX In Canada !! is a post from: Toronto Real Estate Updates

We’ve just experienced the strongest November for sales in the Toronto Real Estate Board history – 7,446 houses and condominiums changed hands in the month. Not unexpectedly, this is double the number of sales one year ago when we were in the depths of the world recession.

The bellweather ratio of sales-to-listings or absorption rate is still above 50% (53.9% to be exact) mainly due to a 49% drop in listing inventory from the same period in 2008. We had approximately 14,000 listings on the market during the month. In a normal year that figure would range from 18,000 to 22,000 for November.

Although we are seeing record number of Toronto house and condo buyers in the market, the real problem is the lack of listing inventory. When we finally do see an increase in homes being listed (estimated by CMHC to be next spring), it will bring a healthy (and welcome) balance to the market.

The average sale price during the month of November was $418,460, down from $423,559 in October but up 13.5% from one year ago. Interestingly, the average sale price year-to-date is up by just 3.09% from 2008, thereby showing that there is still affordability out there for many home buyers.

If you look at the graph to the right you’ll see that the long-term line showing average sale price has always been on an upward trend. We definitely have had our blips but overall we’ve always come through them well.

Toronto home purchasers are increasingly embrassing the condominium lifestyle – in November 33.9% of sales were to condo townhouse or high-rise home buyers. This is the largest number I’ve seen ever. It’s pretty evident that many Torontonians are seeing the advantages to getting into home ownership by starting with a condo purchase.

To read more about Toronto Real Estate Board statistics for November, read the entire TREB MarketWatch Newsletter.

YTD Real Estate Sales In Toronto Show Large Improvement Over 2008 is a post from: Toronto Real Estate Updates

If you’re thinking of selling your house or condo in the near future, you need to look at this Top-15 list and make sure your home doesn’t fit any of these situations. You may be losing thousands of dollars if you don’t.

Buyers take note too… some of these can apply to you as well.

This list was compiled by several agents and here’s what they said…

1. The things that bother me most when showing homes includes the seller or listing agent being there trying to discuss all the wonderful features. I find so often the buyers say that one of the items that they owners paid a ton of money for they absolutely hate. It actually turns them off from buying as they almost feel guilty tearing it out or feel like they are paying tens of thousands of dollars extra for something they do not like. If the seller or listing agent were not there they would likely just say they do not like this or that, or would not even give it a thought on a first showing due to their attention not being brought to that one feature.
2. Truly messy homes especially ones where shoes, undergarments or dirty laundry are on the floor or bed. You kind of expect it in Power of Sale homes, but I have seen it too often in luxury homes also.
3. While showing a home to a couple with young children, as we entered the master bedroom on the walls there were fairly revealing pictures of every kind and description. Needless to say I ushered the couple and their children out as fast as possible
4. Pet deposits and unfriendly odors will kill any sale. There is no excuse for listing a property without doing something to mitigate odors and pet deposits.
5. I think asking visitors to take off their shoes is a plus, not a minus. I tell my buyers that since this might be their home soon, we don’t want to track dirt into their house.
6. The front door key either doesn’t work or is very hard to make work – and no front porch light on to help see what the problem is.
7. An occasional missing light bulb is forgivable in a vacant property but it would help if agents who show the property would alert the sellers agent when they find a light bulb missing.
8. Owners who insisit on being present for showings & prevent you from talking with your client.
9. High-end homes with picture hanging nails still left in the walls or nail holes that are not filled in and repainted.
10. The friend or relative who accompanies the client and takes the role of real estate consultant. They always believe they know more than the buyer agent who is genuinely trying to guide their buyer with integrity. The friend also may not know the buyer’s complete financial picture – they’ve told their buyer agent but didn’t necessarily want to share that more personal information with the friend!
11. Unexpected (and not real friendly) dogs on the loose in a house when we’re showing. Even “dog people” are affected; especially when we’re not told beforehand. Snakes and reptiles spook most people as well.
12. On the buyer’s side of the equation is letting their young kids run wild through the homes – It’s very distracting to their parents. Better that the kids stay home with a sitter so the parents can really look at what features the homes offer. Parents also run the risk of their children breaking something that could cost them a lot of money to replace.
13. Overgrown flower gardens or lawns, things that distract from the curb appeal and give a bad first impression.
14. Sellers who put restricted showing times on viewing their homes – often buyers are working many hours and only have certain times available to look at homes and then we find we can’t make an appointment. Of course there are sometimes personal circumstances which might limit the showing times but definitely try to keep these to a minimum. You might be missing out on the perfect buyer.
15. Sellers and listing agents who don’t actually seem to want to sell the property. They require an appointment made either with the agent or the seller, but they never return phone calls!

From the listing agent’s point of view, we’d like buyer agents to be sure to lock all the doors of the home when they depart and to be respective of the seller’s home when they’re on the premises – take shoes off and not leave any garbage around when heading out the door.

And finally, if their showing is going to be late or be cancelled altogether, to please call the listing agent’s office and have them notify the seller of the change.

Top 15 Things Toronto Buyers (And Their Agents) Hate When Looking At Homes For Sale is a post from: Toronto Real Estate Updates