The Real Estate markets across the GTA are hot once again. The unofficial numbers of residential properties that sold in February is 6,988 with 52 of those properties are listed with no bedrooms ( most likely vacant land), leaving 6,936 homes sold in the Greater Toronto Area.
I expect to get the official numbers from the Toronto Real Estate Board in the next 5 days, but they are likely to be close to this number. This is up from February 2005 which was only 6,171 homes sold in the GTA.
York Region home sales accounted for 1,336 homes, up from 1,289 homes sold in February 2005.
The spring market is in full force right now with a large increase in the number of available homes. Across the there are currently 19,978 residential home listings which is up from last month 18,073 available homes. The number of York Region homes for sale accounts for 4,207 of those. There has no shortage of home buyers so far this year and this seems to be pushing up home prices even more. It will be interesting to see what the average sold prices are when the TREB official numbers come out.
Have a Question? You can use the comment function here and I will post an answer, or contact me directly.
Tuesday, February 28, 2006
Tuesday, February 21, 2006
Protect yourself from Real Estate Fraud
Real Estate Fraud is on the rise in Canada. According to a representative at First Canadian Title, the number of incidences of real estate fraud related claims have increased. Not only does real estate fraud cause a great deal of damage to victims credit and their lives, having to fight to regain what was rightfully theirs, but it can affect whether or not you can sell your home which is usually when you find out that you are a victim.
Real Estate Fraud is very attractive to those who are looking for large gains and are willing to break the law because the average pay off is around $300,000 verses $1,200 with credit card fraud.
So how do you know if you are a victim? You may wake up one morning to see a for sale sign on your front lawn (not by your doing). Most commonly you will find out when you try to sell your home, and you accept an offer. When the Buyers Lawyer does a title search they may find multiple mortgages or registered liens on your home. This will completely stop any agreement from proceeding until these issues can be fixed which can take a long time. If you are unlucky enough to have already purchased another home then that agreement may be in for some complications as well.
So how can you protect yourself? Title Insurance. There are several companies in Canada that provide title insurance. Title Plus and First Canadian Title are two of these companies. Title insurance is available through your real estate lawyer, and it is a one time fee that guarantees your ownership of the title and your use of the property. It also protects against fraud. You used to only be able to buy title insurance when you bought a home, however the title insurance companies now have programs for home owners to buy title insurance for their current home. I highly suggest that if you own a home and do not have title insurance, or do not know if you have title insurance, to contact your real estate lawyer and get more information. It may not prevent fraud but it can make dealing with it a lot easier for you.
Real Estate Fraud is very attractive to those who are looking for large gains and are willing to break the law because the average pay off is around $300,000 verses $1,200 with credit card fraud.
So how do you know if you are a victim? You may wake up one morning to see a for sale sign on your front lawn (not by your doing). Most commonly you will find out when you try to sell your home, and you accept an offer. When the Buyers Lawyer does a title search they may find multiple mortgages or registered liens on your home. This will completely stop any agreement from proceeding until these issues can be fixed which can take a long time. If you are unlucky enough to have already purchased another home then that agreement may be in for some complications as well.
So how can you protect yourself? Title Insurance. There are several companies in Canada that provide title insurance. Title Plus and First Canadian Title are two of these companies. Title insurance is available through your real estate lawyer, and it is a one time fee that guarantees your ownership of the title and your use of the property. It also protects against fraud. You used to only be able to buy title insurance when you bought a home, however the title insurance companies now have programs for home owners to buy title insurance for their current home. I highly suggest that if you own a home and do not have title insurance, or do not know if you have title insurance, to contact your real estate lawyer and get more information. It may not prevent fraud but it can make dealing with it a lot easier for you.
Monday, February 20, 2006
Residential Real Estate Investment Tips
There was an interesting article in the Toronto Star recently about how to get and keep good quality renter in your real estate investments. This is the magic goose egg for investment real estate and yet the answers are not that hard to find. I just wanted to give you my take on how to get and keep good Tenants.
If you look at any building you can almost guess what the turn over rate is. Keeping good tenants is easy when you treat them like customers and respond to their needs on a timely basis. So if you treat your tenants like animals and keep them in a cage then they are likely to crap all over it. Were as, if you listen to their needs and are proactive about maintaining the building, your tenants will likely see that you respect them and the property and so will they. There are exceptions to this and you need to properly qualify your tenants to avoid most of these, and the ones that get through you just have to accept, move on and learn from them. There is always a risk with any investment.
Reduce your risk right at the beginning by properly qualifying your new tenants. So how do you qualify a tenant? Ask questions, do a credit check, get a letter of employment, check all references and ask questions that will tell you is the reference is real or just a friend of the tenant. The article suggests using a standard rental form and looking for any missed information. You should also learn to ask indirect questions. Do not ask if they have a dog; ask them if they will be bringing their dog when they view the apartment. If they say that they do not own a dog you need to find a few other questions that might confirm that they so not have pets. However, often you will get the response of “sure” or “I don’t have a dog, just a cat” or something along those lines.
The most important advice that any investor in residential real estate should take is, get a copy of the Tenant Protection Act and read it until you understand all of your obligations and the procedures you need to take if you have a problem tenant. Most often problem tenants know their rights better than the landlords and if you serve them the wrong notice then they may wait until the day you expect them to leave to inform you that they are not leaving and do not have to. Then you are stuck back at stage one, getting the correct notice and delivering it in an approved manner and waiting again until the time that you can evict them.
The bottom line, whether you own real estate in Richmond Hill, Toronto or anywhere, is treat your good tenants well and thoroughly qualify and verify any new tenants. Know your rights and obligations and get a written lease that spells out what you and the tenant are responsible for during their occupancy.
If you look at any building you can almost guess what the turn over rate is. Keeping good tenants is easy when you treat them like customers and respond to their needs on a timely basis. So if you treat your tenants like animals and keep them in a cage then they are likely to crap all over it. Were as, if you listen to their needs and are proactive about maintaining the building, your tenants will likely see that you respect them and the property and so will they. There are exceptions to this and you need to properly qualify your tenants to avoid most of these, and the ones that get through you just have to accept, move on and learn from them. There is always a risk with any investment.
Reduce your risk right at the beginning by properly qualifying your new tenants. So how do you qualify a tenant? Ask questions, do a credit check, get a letter of employment, check all references and ask questions that will tell you is the reference is real or just a friend of the tenant. The article suggests using a standard rental form and looking for any missed information. You should also learn to ask indirect questions. Do not ask if they have a dog; ask them if they will be bringing their dog when they view the apartment. If they say that they do not own a dog you need to find a few other questions that might confirm that they so not have pets. However, often you will get the response of “sure” or “I don’t have a dog, just a cat” or something along those lines.
The most important advice that any investor in residential real estate should take is, get a copy of the Tenant Protection Act and read it until you understand all of your obligations and the procedures you need to take if you have a problem tenant. Most often problem tenants know their rights better than the landlords and if you serve them the wrong notice then they may wait until the day you expect them to leave to inform you that they are not leaving and do not have to. Then you are stuck back at stage one, getting the correct notice and delivering it in an approved manner and waiting again until the time that you can evict them.
The bottom line, whether you own real estate in Richmond Hill, Toronto or anywhere, is treat your good tenants well and thoroughly qualify and verify any new tenants. Know your rights and obligations and get a written lease that spells out what you and the tenant are responsible for during their occupancy.
Saturday, February 18, 2006
Mid Month Real Estate Sales Record
The mid February home sales numbers are in. Real Estate sales are reached a record high for mid February with 3,301 sales. We will have to see if the second half of the month stays on track, however it is unlikely to be drastically different from the first half. The Toronto Real Estate Board also produced some statistical information about a few areas in downtown Toronto and Whitby were there was larger than average increases in sales volumes. However, I doubt this is a new trend, and is more likely to be a just a matter coincidence. Sales numbers within any district can vary drastically depending on the quality and quantity of homes on the market. If an area has a short supply of homes in good condition for reasonable prices, Buyers may wait until better homes come on the market or the current ones get fixed up. If a large number of quality homes then come onto the market there will be a larger number of Buyers ready to snatch them up.
This is constantly happening which is why there can be short term variations in the sales statistics. If the same increase or decrease in sales happens over several months then it is more likely to be a new trend for an area.
What does all this mean to the average Buyer or Seller? Just that the Real Estate Markets are still strong and that you should have strong representation in order to get what you want. Individual area statistics should not be a consideration when you are choosing an area to purchase. That should be based on your needs, not what other peoples needs are.
This is constantly happening which is why there can be short term variations in the sales statistics. If the same increase or decrease in sales happens over several months then it is more likely to be a new trend for an area.
What does all this mean to the average Buyer or Seller? Just that the Real Estate Markets are still strong and that you should have strong representation in order to get what you want. Individual area statistics should not be a consideration when you are choosing an area to purchase. That should be based on your needs, not what other peoples needs are.
Thursday, February 16, 2006
Real Estate Prices and the Statistics - Aurora Real Estate Case Study
We all know that Real Estate prices in York Region have gone up a lot over the last few years. However, some people are starting to get ridiculous. Back in January I saw an article stating that homes in Aurora have gone up by 50% in the last year or two. I recently saw a home that sold for $380,000 2 years ago that is now asking $465,000 when there are larger homes, with better features and in the same area, asking $450,000. Unfortunately this seller is in for a long and tricky battle that will, most likely, end with the Sellers wasting a lot of time until they reduce their price to around $410,000 to $420,000. Still not a bad increase for 2 years.
When you are looking at statistics you need to acknowledge that the numbers have been separated from any identifying characteristics. So, if the types of homes being sold, or the neighbourhoods where most of the sales occur, change the average sale price can change without the value of a particular home changing at all.
In January 2003 the average sale price in Aurora, Ontario, was $305,663. Now, the average sale price in Aurora in January 2006 was $407,678 which represents a 33.4% increase over 3 years. Does this mean that if you bought a home, 3 years ago, in Aurora for $300,000 that you could sell it for $400,000 today? No. Without looking at what type of home is selling at the time the statistical information is taken there is little relevance to a given property. It is fairly safe to say that you could sell your home for more than three years ago, but most statistics lack the details required to represent the change in value for a real home. There has been a trend towards newer detached homes which tend to cost more than a similar home that is 15 years old and has not been updated. Also, with the levels of new construction that we have seen throughout York Region, the housing demographics have been changing dramatically.
When you are selling real estate you must be able to sit down and look at the comparable homes that have recently sold. This is particularly important now that the Real Estate markets are balancing out and we are moving out of the “Seller’s Market” that we have experienced over the last 5 plus years.
For a realistic value of your home you need to have a market evaluation done for your home by a Realtor®
When you are looking at statistics you need to acknowledge that the numbers have been separated from any identifying characteristics. So, if the types of homes being sold, or the neighbourhoods where most of the sales occur, change the average sale price can change without the value of a particular home changing at all.
In January 2003 the average sale price in Aurora, Ontario, was $305,663. Now, the average sale price in Aurora in January 2006 was $407,678 which represents a 33.4% increase over 3 years. Does this mean that if you bought a home, 3 years ago, in Aurora for $300,000 that you could sell it for $400,000 today? No. Without looking at what type of home is selling at the time the statistical information is taken there is little relevance to a given property. It is fairly safe to say that you could sell your home for more than three years ago, but most statistics lack the details required to represent the change in value for a real home. There has been a trend towards newer detached homes which tend to cost more than a similar home that is 15 years old and has not been updated. Also, with the levels of new construction that we have seen throughout York Region, the housing demographics have been changing dramatically.
When you are selling real estate you must be able to sit down and look at the comparable homes that have recently sold. This is particularly important now that the Real Estate markets are balancing out and we are moving out of the “Seller’s Market” that we have experienced over the last 5 plus years.
For a realistic value of your home you need to have a market evaluation done for your home by a Realtor®
Sunday, February 12, 2006
Toronto Community Revitalization
Regent Park was once meant to be an investment in community and to build better futures for people who needed a little help. However, it turned into a blight in the city. It was notorious for criminal activity and the difficulty that patrolling it's parks and open spaces.
Change is finally coming. Tomorrow, Monday Feb 13th 2006, the demolition starts. At 11:00 am there is going to be a ceremony to celebrate the clearing of the old to make way for the new. There is a 12 stage plan to tear down Regent Park and rebuild it to make it better, safer and more in line with the original concept. There will still be the same number of rent assisted housing but there will also be regular rental units as well as shops and community services and centers. The plan will reintegrate pedestrian friendly streets which will help to make policing the area more effective as well as making the inner areas more accessible for the general public which should help to keep the area alive and energetic.
The plans are enthusiastic and seem to be well thought out with planned flexibility to address future development needs . Regent Park may become an area where people want to live instead of where the unfortunate get stuck. I hope that the reality of the Regent Park revitalization plan is equal to the plan as it will be a neighbourhood where people are proud to live, which will let those who are in the rent assisted units know that they can achieve higher goals. It is said that you become like the people you surround yourself with. Bring successful people and businesses back into Regent Park and hopefully it will raise the optimism, goals, drive and achievements of those who are currently suffering from bad circumstance.
I think that this is going to be a great project to keep an eye on over the next 15 years or so.
For more info start at http://www.regentparkplan.ca/
Change is finally coming. Tomorrow, Monday Feb 13th 2006, the demolition starts. At 11:00 am there is going to be a ceremony to celebrate the clearing of the old to make way for the new. There is a 12 stage plan to tear down Regent Park and rebuild it to make it better, safer and more in line with the original concept. There will still be the same number of rent assisted housing but there will also be regular rental units as well as shops and community services and centers. The plan will reintegrate pedestrian friendly streets which will help to make policing the area more effective as well as making the inner areas more accessible for the general public which should help to keep the area alive and energetic.
The plans are enthusiastic and seem to be well thought out with planned flexibility to address future development needs . Regent Park may become an area where people want to live instead of where the unfortunate get stuck. I hope that the reality of the Regent Park revitalization plan is equal to the plan as it will be a neighbourhood where people are proud to live, which will let those who are in the rent assisted units know that they can achieve higher goals. It is said that you become like the people you surround yourself with. Bring successful people and businesses back into Regent Park and hopefully it will raise the optimism, goals, drive and achievements of those who are currently suffering from bad circumstance.
I think that this is going to be a great project to keep an eye on over the next 15 years or so.
For more info start at http://www.regentparkplan.ca/
Thursday, February 09, 2006
Automated Home Evaluation Web Site Launched
The makers of Expedia have branched out into Real Estate evaluations in the U.S.A. This service (Zillow.com ) offers home evaluations and real estate information to help consumers prepare for their home buying and selling experiences. However, the Beta version that is currently available has some significant flaws. The most minor of these is the fact that the site has been on and offline all day as every Realtor® (or at least most of the ones that have heard about it) in the states has been trying to find out how this will effect their business. As the traffic to this site moderates this will not be as big a problem and it is an issue that is fairly easy to fix for a company like Expedia.
The bigger problem is the actual values that are being quoted. According to the agents on a Real Estate Forums that I participate on, the values in most areas are very low and the information about the homes is not always accurate. One agents own freehold home was quoted as being a condominium and the actual value is 250% higher than Zillow quoted, according to his evaluation. The vast majority of the agents were between 35% and 300% off with only 1 agent so far saying that the “zestimate” was fairly close.
Why the discrepancy? The Zillow system does not use MLS information. It uses property tax records and assessments as well as sales prices form the different land registry systems. The problem here is that tax assessments do not account for the condition of your home beyond certain expectations of ware and tare. It also means that the comparable sales that are being compared to your home are from transactions that have closed, so the sale my have been 30 – 120 day ago or more. The biggest drawback is the human factor. This system is entirely automated and has no human evaluation of the properties. With most online home evaluation services your request is sent to a real Realtor® who considers your home on more than just the room numbers.
In the future if they can deal with the inaccuracy problems, this could be a great starting point for home buyers and sellers. However, your Realtor® will still be a very important part of your real estate success. If this service ever expands into Canada then I look forward to seeing how my clients and I, as a Realtor®, can benefit from this service. It will be one more tool that we can all use to ensure that we are prepared for any up coming real estate transaction. This is assuming that the systems flaws are corrected by then.
Get an accurate home evaluation today
The bigger problem is the actual values that are being quoted. According to the agents on a Real Estate Forums that I participate on, the values in most areas are very low and the information about the homes is not always accurate. One agents own freehold home was quoted as being a condominium and the actual value is 250% higher than Zillow quoted, according to his evaluation. The vast majority of the agents were between 35% and 300% off with only 1 agent so far saying that the “zestimate” was fairly close.
Why the discrepancy? The Zillow system does not use MLS information. It uses property tax records and assessments as well as sales prices form the different land registry systems. The problem here is that tax assessments do not account for the condition of your home beyond certain expectations of ware and tare. It also means that the comparable sales that are being compared to your home are from transactions that have closed, so the sale my have been 30 – 120 day ago or more. The biggest drawback is the human factor. This system is entirely automated and has no human evaluation of the properties. With most online home evaluation services your request is sent to a real Realtor® who considers your home on more than just the room numbers.
In the future if they can deal with the inaccuracy problems, this could be a great starting point for home buyers and sellers. However, your Realtor® will still be a very important part of your real estate success. If this service ever expands into Canada then I look forward to seeing how my clients and I, as a Realtor®, can benefit from this service. It will be one more tool that we can all use to ensure that we are prepared for any up coming real estate transaction. This is assuming that the systems flaws are corrected by then.
Get an accurate home evaluation today
Wednesday, February 08, 2006
Ontario Government Invests in Reducing Demestic Violence
McGuinty and his Ontario Government have added a $2,000,000.00 investment into their long term plan to deal with domestic violence. The money is to be used to maintain shelters for women and children who have been in abusive relationships and need a safe environment to recover and rebuild their lives, as well as counselling services. This is on top of the $66 million already budgeted for the long term plan.
I have never been a strong McGuinty fan however you cannot fault him or the government on actions like this. The plan focuses on early intervention and prevention, education, a stronger justice system and better access for a wider variety of cultural and linguistic communities.
For further information: Sara Best, Minister's Office, (416) 325-5219;
Anne Machowski-Smith, Ministry of Community and Social Services, (416) 325-5156
or visit
http://www.mcss.gov.on.ca/CFCS/default.htm
I have never been a strong McGuinty fan however you cannot fault him or the government on actions like this. The plan focuses on early intervention and prevention, education, a stronger justice system and better access for a wider variety of cultural and linguistic communities.
For further information: Sara Best, Minister's Office, (416) 325-5219;
Anne Machowski-Smith, Ministry of Community and Social Services, (416) 325-5156
or visit
http://www.mcss.gov.on.ca/CFCS/default.htm
Green Toronto Awards
Toronto is looking for nominations for their “Green Toronto Awards”. If you know of a building, person, organization or business that has contributed to improving the Toronto and it’s environment. For more details about the awards and the different categories or to nominate a candidate, go to www.toronto.ca/greentorontoawards or call 416-392-2984
January Home Sales in York Region and the Greater Toronto Area
Sales numbers are in for January. There were 4,587 homes sold through the Toronto MLS system. Topical to January there were more new listings than sales. In the more populated areas new listings in York Region were 3+ times greater than sales. This indicates that the spring market, which really starts in early February, will have a good selection for buyers to compare. Average sale price for homes across the GTA dipped, slightly, under the annual average for 2005, however it was still almost $10,000 higher than last January’s average.
These numbers are aggregate statistics and include a wide variety of types of homes. If you are interested in a more accurate depiction of a certain type of home in a specific area, call me for more information.
Andrew Hodge - Sales Associate
Century 21 St. Andrew's Realty Inc. - member broker
office 905-841-1030
Direct Line 416-278-2335
www.AndrewHodgeRealtor.com
http://york-region-real-estate.blogspot.com
These numbers are aggregate statistics and include a wide variety of types of homes. If you are interested in a more accurate depiction of a certain type of home in a specific area, call me for more information.
Andrew Hodge - Sales Associate
Century 21 St. Andrew's Realty Inc. - member broker
office 905-841-1030
Direct Line 416-278-2335
www.AndrewHodgeRealtor.com
http://york-region-real-estate.blogspot.com
Wednesday, February 01, 2006
New Condo Opportunities
There are a number of new Condominiums that are starting to offer unit and starting to build through out Toronto. Starting in the low $200,000 with lots of great features. If you are looking to buy a new condo in Toronto contact me and find out how I can save you money on your purchase. Find the prefect unit and save!
Andrew Hodge
direct line 416-278-2335
Andrew Hodge
direct line 416-278-2335
Heads Up | Bank Rates Rising
One of the mortgage brokers that I work with sent me a notice that interest rates may be about to increase again. If you are planning on buying in the near future, go and talk to your mortgage professional today and get your pre-approved mortgage and lock in the lower rates. This does not mean that you have to buy it just means that if you buy with in a time period then you will get the best rate between now and your closing date.
If you want the name of some good mortgage professionals please contact me. I can also help you jump start your search so that you do not miss the right home. Call today 416-278-2335
or request MLS listings from My web site.
If you want the name of some good mortgage professionals please contact me. I can also help you jump start your search so that you do not miss the right home. Call today 416-278-2335
or request MLS listings from My web site.
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