The recent stormy financial atmosphere across Canada, including Ontario and Toronto, has led to an increase in homes sold by the bank, sold under what is called “Power of Sale”. Homes sold by the bank are typically ones in which the former homeowner unfortunately could not pay their mortgage.

"Power of Sale" homes require extra caution on the part of Toronto homeowners.

The agreement may have a lot more clauses included in a schedule to the agreement of purchase and sale than the average home buying transaction, such as:

The buyer is responsible for their own inspection and appraisal, as well as accepting the property as is with regards to the state of repair.

Any information provided by the seller/lender should be verified by the buyer or their representatives and it is the buyer’s responsibility alone.

If at anytime prior to closing the original owner can pay their mortgage back up to date, the transaction is voided.

It’s no secret that a lot of these homes have some heartache attached, but headaches can be abundant too. It’s very wise to have your lawyer look over the lengthy, complicated document to ensure that you’re okay with the many clauses involved in these power of sale homes. You are also within your rights to make the offer conditional on your obtaining a mortgage, being happy with the home inspection, checking up on what the seller has told you, and having your lawyer approve the lender’s schedule to the agreement.

What is “Power of Sale” and What Does it Mean to Toronto Home Buyers? is a post from: Toronto Real Estate Updates

Over 5 days, one Greater Toronto Area builder is going to attempt to build an entire 2,300 square-foot home, to be sold with proceeds going to support a new intensive care unit at the Bowmanville Memorial Hospital.

An artist's rendering of the Greater Toronto Area 5-Day Build Project home.

According to Halminen Homes, the home is expected to sell for over $400,000.

The home is being built in the town of Courtice (pronounced “Curtis”), Ontario, which is located only 70 kilometers east of Toronto, just past Oshawa. Building begins at 6 a.m. on Monday, August 9th and will last until Friday afternoon with the builders are working over time, 24 hours per day.

A team of over 100 people with Halminen Homes will build the home. Normally, a home of this size can take anywhere from 45 to 60 days to be built. The 5-day build also includes landscaping, furnishing, interior decor and a complete double-car attached garage.

If you’re interested in going to see the build, visit the builder’s blog.

The Greater Toronto Area 5-Day Build Project is a post from: Toronto Real Estate Updates

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

In a recent Downtown Toronto condominium-naming contest, “That Big Steel Thing Downtown” was a contender, chosen by the community to be voted on as the next possible name of a new downtown Toronto condominium development.

Toronto's Hockey Hall of Fame. Just one example of stand-out, beautiful architecture in the city.

The suggested name seemingly lends a bit of credibility to one of Toronto’s mayoral candidates vision for a “prettier” downtown, without as much “boring, glass, concrete blocks,” according to Sarah Thomson.

She said she would create a new service that would let developers fast-track building concepts in which they’ve put effort into designing, as opposed to going through the regular process of having developers get approved, which can take years.

This is a very interesting idea for sure, although the buildings in and around the Greater Toronto Area are far from boring, stale and unimaginative. The city is filled with beautiful heritage buildings, innovative sky scraper designs and a wide variety of home styles.

The Hockey Hall of Fame, ChumCity/CTV building on Queen Street, Ontario Place, the CN Tower, the Rogers Centre, Nathan Philips Square, the Royal Ontario Museum, Old City Hall, Union Station and Casa Loma are just a tiny sampling of the intriguing, diverse and unique architecture found within the city limits.

Without the addition of a new program to benefit developers, condominium and other building designers are already competing to bring Torontonians something better with each building constructed. Just look at the Five Condos at 5 St. Joseph, which uses a heritage building as its own facade. One also only has to peek around a corner to find Chinatown, Greek Town or Little Italy, where building and community styles from around the world are making homes within the city.

Our skyline is booming, but it’s certainly not boring in Toronto.

Toronto: Boring Architecture? Never. is a post from: Toronto Real Estate Updates

As far as I’m concerned it had to happen sometime.  The foolishness of ‘manufactured’ multiple offers in Toronto had gone on for far too long and was hurting home buyers, not benefiting house or condo sellers and was wasting a lot of everyone’s time and energy.

Motivated sellers will still get their homes sold and motivated buyers now have more choice in what they would like to buy.

I don’t know how long this blip in the Toronto real estate market is going to last.  In the past few years, the summer market has been as strong as the rest of the year.  In the 1980’s and 1990’s July and August sales were always down – people going on vacation, hot weather etc -  so we might just have reverted to that old traditional marketplace.

So… watch the video, get caught up on the latest Toronto Real Estate Board stats and get a feel for what you should be doing in today’s less stressful real estate market.

Toronto’s Real Estate Market Slows In June… Continuing To Do So In July is a post from: Toronto Real Estate Updates

“You get what you pay for.”

We’ve all heard it, but sometimes a great deal is just too tempting to pass up.

Don't leave your costly renovations to just anyone you find in the Toronto phone book.

There are a ton of reasons to renovate your Toronto home. You might want to boost resale value, or you may just want so jazz it up a bit for yourself. Perhaps you want a new sunroom, patio or spa shower. The reasoning varies as much as individual tastes, but one thing is always constant: use a reputable contractor.

The “Underground Economy” is composed of tradespeople, contractors and other services that don’t pay taxes and are otherwise not legitimate. They don’t charge sales tax, providing you with a cheaper option. However, they also don’t pay the sales tax themselves or pay income and payroll taxes.

The Ontario Home Builders’ Association estimates that about 37 per cent of residential renovation work is done by underground contractors. While recent renovation tax credits and rebates made it more worthwhile to take the time to find an approved contractor, there are other reasons to consider. The most important of which, is that fly-by-night contractors can tend to do work that’s not as good as it should be, not take out the required permits and leave the homeowner with zero recourse.

When looking to renovate:

Check out the Better Business Bureau website. It’s always wise to do this, because an “F” rating doesn’t mean the company will stop operating. There will also be a list of the types of complains and the resolution taken, as well as any other relevant information. Do keep in mind though, that just because a company is not listed doesn’t mean it’s fraudulent.

Ask the company for references and proof of insurance. Reputable contractors will be as happy to show you their proof of insurance (liability especially) as they are their references. If the company doesn’t have the proper insurance and someone gets hurt, the homeowner could be liable.

Always have a contract and make sure it’s complete. It should include final prices, completion dates, permits that need to be taken out and both the homeowner and company’s contact information.

Some things to consider before renovating your Toronto home is a post from: Toronto Real Estate Updates

And the answer is: a lot, according to a new survey by TD Canada Trust. Toronto first-time buyers are looking for all of the extras like additional bedrooms and all of the nicest appliances, but they intend to stick around for a lot longer than first-time buyers have in previous years. Instead of moving repeatedly to find that perfect home, they’d rather buy a home that will last them a longer chunk of their lives the first time.

Toronto first-time buyers are looking for homes that will last.

The TD Canada Home Buyer’s Report shows that most Canadians are looking to pay less than the asking price for new homes rather than older homes or condos. The majority of those surveyed, about 75 per cent, want a newly built home. However, most of these buyers will also stay in the home for a longer period of time.

The cost of down payments is also dwindling, as in Ontario 36 per cent of first-time homebuyers intend to put about 20 per cent down, while across the country only 30 per cent of first-time buyers surveyed intend to put down anything higher.

However, the low down payments and wanting more for less shouldn’t be mistaken for haste, as first time home buyers are doing between eight and 10 months of research and shopping in the country’s hottest markets (like Toronto), taking the time to figure out what exactly they can get. Almost 100 per cent of those surveyed had studied their mortgage options and 91 per cent were pre-approved, but interest rates are still a concern for many first-time homebuyers with about 60 per cent worried about still being able to afford payments if interest rates were to rise.

TD Canada Trust does suggest that homeowners spend a bit more time saving up for a larger down payment, but homeowners are on the right track with regards to being prepared for the “hidden” costs of home buying: 88 per cent of those surveyed had calculated all of their closing costs and 85 per cent had figured out their potential utility fees.

What do first-time Toronto homebuyers want? is a post from: Toronto Real Estate Updates

Now that July 1st, 2010 is past, all Toronto real estate buyers and sellers will have to deal with paying the new HST tax when they buy or sell.

But it’s not all bad… for buyers of resale homes, the impact is minimal For sellers the costs will be somewhat higher.

Take a look at this short Real Estate Minute video to get all the answers.

Toronto Home Buyers And Sellers Now Face Additional Closing Costs 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