Introducing the MLS® Home Price Index

 

What is it?  What can it do for me?  How does it work?  

The Toronto Real Estate Board (TREB), Canadian Real Estate Association (CREA) and four other major real estate boards across Canada have developed a new system to measure and provide clarity on home prices and home price growth: the MLS® Home Price Index (MLS® HPI).

Interesting Article About Basement Apartments

We'd like to share a great article with you regarding basement apartments. If you are an investor, seller, or renting, this article will give you some great insight and pointers you could find informative. 

March 2, 2012 - As Greater Toronto REALTORS®, we recognize that in comparison to other world cities, ours is a clean, safe and affordable place to live, and its allure means that we’ll continue to see greater intensification in the years ahead.
Toronto’s popularity is reflected for example, in the condominium market, which currently has more buildings under construction than in any other city in North America. Basement apartments also play an important role in meeting demand for housing throughout the Greater Toronto Area and if you have ever listed a property with one, you’re probably familiar with the “Seller does not warrant retrofit” clause. Second suites can cause confusion for homebuyers and REALTORS® alike, but this doesn’t have to be the case. 

According to noted home inspectors Carson Dunlop, achieving a ‘legal’ basement apartment involves five areas of consideration:

Arrival of Spring Means...

Our Dear Readers,

We hope that you and your family are having an enjoyable month! Judging by this BEAUTIFUL weather we have been having the last week, spring is coming soon and with it comes more activity in the Real Estate Market.

It can be enticing to see all those FOR SALE signs and open house invitations throughout the area. you might even consider checking out a few properties. If so, give us a call! We would be happy to review the homes available on the market with you.

Let's enjoy this sunshine and get started on the journey of finding your dream home!

Sincerely, 

The Sarwar Team 

Why it's a Great Time to Buy a Home

We have recieved some excellent information from our credible source at TD Canada Trust. It’s always a good time to buy or sell, however if you, your friends, family or colleagues are on the fence, here are a few thoughts that may help them get over it.

Mortgage rates at historic lows: They can’t get any lower. Four to five-year fixed mortgages at 3 per cent are unheard of. It is lower than the variable rate that most Canadians have been paying for years. Rates have nowhere to go but up, either later this year or next. If you are paying a variable interest rate, lock in now.

Canada’s appeal: This country has everything going for it — a stable banking and political environment, steady real estate market, the natural resources people want and few social tensions. That makes us a safe haven in a volatile world.

Our immigrant draw: Because of the above, we’re a draw for immigrants, often wealthy ones. When they get here, they need a home. So in my view while the real estate market may level off in some areas of Ontario, it should stay strong in most of the GTA and likely Canada’s other large urban centres as well.

Mortgage defaults: According to CMHC, over 99 per cent of Canadians pay their mortgages on time. It quite a different picture in the U.S. where 7 million homes are in foreclosure and perhaps another 7 million homeowners are under water. This represents almost 15 per cent of all homes. So while the American housing market will likely be weak for the next few years, this should not occur in Canada. Our banks are not dumping homes onto the market, so there is no downward pressure on prices.

Recourse Mortgages: In many U.S. states, if you can’t pay your mortgage, the only thing the bank can do is foreclose; they cannot sue you for any shortfall. So when homes go under water, owners give the keys back to the bank. In Canada, loans are almost all Recourse, meaning if you don’t pay and there is a shortfall, the lender can sue you for the difference. This is another reason why, even if times do get tough, Canadian homeowners will find a way to make the payments until things improve.

Income-to-price ratio: Another misleading statistic is that in major markets, like Toronto, the average price of a home is now 4.6 times the income of the average Canadian. This same statistic was found just before the U.S. and UK markets went into the tank. However, if you look at median incomes of Canadians against the median cost of homes, this average comes down to around 3.5, which is not dangerous. Using averages are wrong. A person receiving social assistance will not buy a home, and should not be included in any relevant statistic.

High consumer debt: The warnings about rising debt ratios must be examined carefully. The Governor of the Bank of Canada is worried that the average personal debt ratio is now 156 per cent in Canada. This means a household making $100,000 per year, owes $156,000, two-thirds of which is mortgage debt. Why is this so bad? At an interest rate of 3 or even 5 per cent, the amount needed to service the debt is manageable. Most people do not pay off their mortgages in one year. Still, this is another good reason to consolidate your debt now, at these low interest rates, and lock in.

No guarantees: Nobody can predict the future and there’s always the possibility of a major economic shock. Yet, in a U.S. presidential election year, politicians will do whatever is necessary to prevent it. If the economy goes into the tank, so do re-election chances. The U.S. is already showing signs of economic recovery.

Jimme Elamad (Manager, Residential Mortgages)

Rates are at an all time low, please don’t hesitate to contact us anytime with your questions, concerns and pre-approvals. We also have great connections in several fields to aid you with all your concerns.

Let's get to Selling and Buying, ladies and gentlemen! It's a GREAT time. If you have any questions, please feel free to give us a call.

GTA Market shows NO signs of slowing!

Dear Friends,

We just reviewed the stats from the Toronto Real Estate Board. TREB reported that in August, there were 7,542 sales for the month. August 2010 there were

Dear friends,

THE TORONTO AREA REAL ESTATE MARKET IS HAVING A GREAT SUMMER!

TREB reported that in July, there were 7,922 sales for the month. July 2010 there were 6,566 sales, so we have experienced an approximately 20% INCREASE in the number of sales compared to last year.

Currently there are only 17,546 homes for sale on the Toronto Real Estate Board, compared to 21,096 at the end of July 2010. That represents about a 18% drop! Think of this. There was a 20% increase in sales and a 18% drop in available homes. Supply and Demand is continuing to be out of whack. What’s interesting to note is that this summer, the amount of inventory stayed pretty stable whereas last year there was a significant drop from May to July. There were significantly MORE new listings this July vs 2010. Inventory levels have stabilized and we may start seeing some increases. I’ll keep a close eye on that for you.

So the question remains...what will happen to the market? My opinion is that the market will continue to be strong until well into 2012. There will be price increases but at slower rates than we’ve experienced over the last year. Inventory levels will likely slightly increase, however in most areas the price ranges conditions will still stay favouring Sellers. As I regularly remind you, I will continue to watch for the following conditions that could cause the market to cool down and prices to level off or drop.

1.    The number of Buyers (the number of sales) will need to drop. That surely doesn’t seem to be the case.

2.    Mortgage rates will need to go UP significantly! I heard they may go down further!!!

3.    Inventory levels will need to go UP significantly. Levels keep dropping at an alarming rate and there’s a surprisingly low number of new listings coming on the market.

4.    Our national or local economy will need to SUFFER significantly. The economy in Canada and particularly in the GTA seems to be getting better. Despite the scary messages from political parties wanting to get into power, things are pretty good. We should be thankful to live in this country.

Whether selling OR buying, the key to taking advantage of current market conditions is working with the right Realtor. When you hear of anyone who may want to buy or sell, please contact me at the office. I promise you that I will take care of them, do a great job and provide them with the best customer service. If you would like any more information, I’m here to help.