Markham Real Estate Today with Asif Khan

Buoyed by ebbing economic concerns and favourable interest rates, demand for houses in the Toronto area was strong in the first three months of 2012.

Fully one third of homes sold on the Multiple Listing Service drew multiple offers as competition for well-located properties turned combative. But the intense demand was not limited to the city’s tony neighbourhoods, says Realosoply Realty Inc. president John Pasalis.

“With prices up 10 per cent over last year,” he says, “first-time buyers in search of value have driven up demand for homes in more affordable and lesser-know neighbourhoods.”

So just where are people buying? Check out the accompanying tables for west, east and central Toronto.

Chart 1. West Toronto: the state of the market.  Bloor West Village and Earlscourt are burning up, but Old Mill has seen better days

Chart 2. East Toronto: the state of market. Danforth dwellers have reason to smile - but it's not so cheery for Old East York.

Chart 3. Central Toronto: the state of market. Corktown and the Financial District see big drops, but things are looking up for Don Mills and Regal Heights

Markham town council has approved a partnership and financial framework for a new $325-million sports and entertainment complex.

Council approved the proposal 10-2 shortly before 11:30 p.m. Thursday night.

No taxpayer money would be used in the proposed financial structure, said a spokeswoman for GTA Sports and Entertainment and its chairman and CEO Graeme Roustan.

The financial arrangement would see half of the cost paid by GTA Centre, LP, while the other half would be funded by local developers via payments to the town to service the debt, the spokeswoman said.

This was the second time town council has met in public to discuss the proposed NHL-sized arena.

GTA Sports and Entertainment is hoping to build a 20,000-seat venue at Highway 407 and Kennedy Road, with plenty of speculation it may one day be used in an attempt to lure a second NHL team to the region.

Developers insist the plan does not depend on bringing a second NHL team to the GTA.

The suburban venue would rival the Air Canada Centre in downtown Toronto because it would accommodate large crowds for sporting events, concerts and other special events.

Developers have already expressed an interest in bringing the lucrative world junior hockey championship to the complex. The annual tournament, featuring the world's top hockey prospects, generated an estimated $85 million in revenue for co-hosts Edmonton and Calgary when it was held over two weeks last December and January.

Via CP24

Asif Khan, ABR
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Re/Max All-Stars Realty Inc., Brokerage
905-888-6222

RealNet, Canada’s leading Real Estate Information Service, this week released its quarterly look at the Greater Toronto Area’s new home sales market, and presented some very interesting statistics.

Overall, it appears as though our hot market has yet to show any signs of lightening up. In the first quarter of 2012, new home sales totaled 8,194 across the GTA, which is an interesting number on its own. What makes it even more interesting is the trend that we are starting to see in the high-rise market. Toronto might be the condominium capital of the world, but RealNet stats suggest that some projects are now finding their way to the 905, with more than 46 per cent of high rise sales coming from the 905 area code, a pretty significant number. Launches of new projects in the 905 jumped to 44 per cent of total starts from 15 per cent in the first quarter last year.

“We are seeing more activity outside the City of Toronto, which in the case of High Rise sales is partly due to government policy encouraging intensification and development around planned transportation corridors,” said BILD Acting President Joe Vaccaro.

It also would make sense that given the shortage of land in the downtown core, builders would be looking to other areas of the GTA to help feed the thirst for condominium projects.

Another interesting trend is smaller unit sizes. Gone are the days where 700 square feet would get you a one-bedroom unit with a large den. Now, builders are maximizing space and putting a focus on creating livable, efficient condominium style homes. RealNet’s stats support this message.

“Through all of 2011, the index size of a new High Rise home was reduced by 52 square feet. During the first quarter of 2012, the index size was reduced by a further 30 square feet, bringing the index size of a new High Rise home in the GTA to 790 square feet,” said RealNet Canada’s president, George M. Carras.

So there we have it. RealNet has spoken, and the stats are encouraging for anyone involved with the new home industry. Thanks to our friends over at RealNet for providing us with these statistics. We look forward to their next release.

http://homesandcondosblog.com/home/realnet-announces-first-quarter-statistics-7040.html

Markham municipal council will vote today on a plan that would bring a 20,000-seat sports and entertainment centre to the Toronto area.

The $325-million GTA Centre would be built at the Unionville GO Station and the cost would be split between private investors and the local community.

The complex would be owned entirely by the Town of Markham.

The proposal, which requires a majority vote to pass, touts the facility as an ideal location for concerts, sporting and cultural events, as well as trade shows and community gatherings.

Its proximity to Toronto could make it a direct competitor to the downtown Air Canada Centre for trade shows and concerts in the area.

Graeme Roustan, head of the GTA Sports and Entertainment Consortium, calls the Greater Toronto Area an "under-served market" when it comes to sports arenas.

He said the Greater Toronto Area is the only community that has 5 million people, and the market is growing by 150,000 people a year.

Roustan said groups are trying to move the proposal forward as fast as possible because he plans to bid on bringing the World Junior Hockey Championships to Markham for 2014.

While the consortium says the plan does not rely on hosting an NHL team in the arena, there is speculation that the arena could be used to lure a second franchise to the Toronto area in the future.

Markham mayor Frank Scarpitti said the centre would not be like other sports venues across the country, where one event ticket would provide access to the entire centre.

According to the proposal, the GTA Centre would create 600 construction jobs over the next two years and 886 positions once the arena is complete. It would also give the local economy an estimated $61.1 million boost annually.

Via: CTVNews

If you’re thinking of buying property in the United States, buy now because prices won’t stay in the basement much longer, says a BMO economist.

“While there’s little urgency, now is likely a good time to buy U.S. real estate in regions with relatively low foreclosure rates, as conditions should improve enough to put a floor under prices this year,” said Sal Guatieri, senior economist, BMO Capital Markets.

Almost two in 10 (16%) Canadians would consider buying a home in America, according to a BMO survey. Just under half (44%) of these potential buyers cite affordability as the attraction, while one third see the property as a long-term investment.

Mr. Guatieri says that while the U.S. housing market remains soft, prices are likely to stabilize in 2013.

Single-family homes sales, while up 6% in the past year to the first quarter, remain 8% below their 20-year average. But Mr. Guatieri predicts that U.S. demand will improve on firmer job growth, improved affordability and easier lending standards.

“With mortgage rates at record lows and resale prices down 34% from the peak, only 12% of gross median family income is needed to finance the purchase of a typical house – nearly half the long-term norm,” he said. “In fact, it’s cheaper to own than rent in many regions.”

While Canadians with their eye on a select location in the States should act now, extreme bargain hunters can afford to wait, says Mr. Guatieri.

In the 15 states with a foreclosure rate above 4% — such as Florida, New Jersey, Illinois and Nevada — prices fell 3.5% in 2011. A one percentage point rise in foreclosure rates is associated with one-half percent decline in home values.

Mr. Guatieri said the flood of foreclosures is far from over as banks process the backlog of delinquent mortgages stemming from allegations of improper foreclosure documentation. Some estimate this so-called “shadow inventory” could be as many as 3 million homes, more than the total of houses on the market now.

http://business.financialpost.com/2012/04/24/time-running-out-to-buy-your-dream-home-in-u-s-economist-warns/ 

You may think you’re getting the best interest rate on your savings account. But unless you keep checking to see if a higher rate comes along, you can be left behind.
Here’s a cautionary tale about Rob Young, who didn’t ask enough questions about his savings account at TD Canada Trust.
In July 2010, Young got a letter saying his TD Guaranteed Interest Account was being changed to an Everyday Savings Account. He would have the same account number and interest rate.
If this account no longer suited his needs, he could book a free assessment, he was told.
 
TD launched a new High Interest Savings Account at the same time, paying more than Young was getting. But he didn’t know about it until recently.
Why didn’t anyone say he could have boosted his savings rate? He had come into the branch many times to update his passbook or transfer money to his chequing account.
Young complained to the branch manager, who sent him charts showing the interest rates on both accounts for his $45,000 in savings.
On July 24, 2010, he was earning 0.85 per cent in annual interest with his Guaranteed Interest Account. His rate dropped to 0.75 per cent, 0.6 per cent and then to 0.5 per cent in April 2011, where it has stayed.
The High Interest Savings Account was paying 1.1 per cent in July 2010. The rate rose to 1.25 per cent in October 2010 — before going to 1.2 per cent in September 2011 and staying there.
Young was out one-quarter of a percentage point by staying with his original account. Later, he was out almost three-quarters of a percentage point.
“I made about $240 in interest last year, but could have made $540,” he told TD.
“Over the years, I’ve been asked about the $45,000. Would I like to make an appointment with a TD adviser for mutual funds? But I’ve never been told about the high interest savings account.
“Why do I need to hear about it on the street? How do you think this made me feel? Will TD make up the difference since the account’s inception?”
Young wrote to TD chairman Brian Levitt, who acknowledged his email but offered no reimbursement. The TD ombudsman also brushed him off.
“The decision to realign savings accounts was a bank-wide policy change implemented across the customer base and is therefore not within the mandate of the ombudsman’s office to review or change,” he was told.
TD said it was his responsibility to look for other savings opportunities or get a free assessment.

I believe that large companies should treat loyal customers with respect. And when Young wrote to me, I asked if he had other accounts at the bank.
Yes, he had a mortgage, which he planned to move at renewal. He’s been a customer for 25 years, starting in the Canada Trust days when he used a Johnny Cash machine.
“I enjoyed getting a yearly Christmas card. I enjoyed the fact that many tellers have known my name, known that my Mom or Dad had died. That is what a good banking relationship should be all about,” he said.
Bingo. TD spends millions of dollars to show it cares for clients. How can it turn down a request for a few hundred dollars by a longtime client who feels the bank ignored his needs?
Spokeswoman Barbara Timmins said the details of the new account hadn’t been finalized when the letters of notification were sent to GIA customers.
“We train our branch and phone staff to have regular conversations with customers to ensure they’re in the right account for their needs. We also provide full information about account options on our website (as well as in branch) and have an account selector tool.
“Unfortunately, the customer did not benefit from either. In this case, we are prepared to make a goodwill gesture to compensate him for the interest rate differential between the two accounts.”
Here’s my advice: Never assume you’re getting the best deal. New plans come out all the time — and companies don’t always tell you about them.
But if you miss out on a deal you think you deserved, play the loyalty card. Say you plan to leave and take your friends and family with you. That alone can turn the odds in your favour.

Ellen Roseman writes about personal finance and consumer issues. You can reach her ateroseman@thestar.ca or www.ellenroseman.com

Major Canadian housing markets have continued to show "exceptional resiliency" so far this year, setting the stage for a busy spring, according to a major Canadian real estate organization.

In its market trends reports, Re/Max said its survey has found that 12 of 15 Canadian centres, or 80 per cent, reported sales activity in January and February that was ahead of last year's levels.

More than half of the cities reported double-digit increases, "with the strong demand and diminished supply setting the stage for a heated spring 2012."

Re/Max said low interest rates, coupled with strong consumer confidence levels and a mild winter played a significant role in the upswing, ushering in an early start to the spring market.

Average prices climbed in 14 of 15 markets, although price appreciation was more tempered, with only three markets -- Toronto, Winnipeg and St. John's, N.L. -- posting gains in excess of 10 per cent.

However, tighter inventory levels at entry-level prices have sparked bidding wars -- particularly in the Winnipeg and the Greater Toronto Area -- with similar conditions starting to emerge in Saskatoon, Regina, London-St. Thomas, Hamilton-Burlington, Ottawa, St. John's and Halifax-Dartmouth.

"Given the current economic climate, the strength of the country's housing market clearly reflects the value Canadians place on home ownership," said Michael Polzler, executive vice-president of Re/Max.

In terms of sales volumes, the best performing markets heading into the traditionally busy spring period were Halifax-Dartmouth, up 35 per cent, Saskatoon (21 per cent), Saint John, N.B., (20 per cent), Regina (16 per cent), St. John's (12.5 per cent), Greater Toronto Area (12 per cent) London-St. Thomas (11 per cent) and Edmonton (11 per cent).

Only Vancouver, Kitchener-Waterloo, and Winnipeg have experienced softening in housing activity so far this year. Sales are down 16 per cent in the Greater Vancouver, 4.5 per cent in Kitchener-Waterloo, and Winnipeg down 0.2 per cent.

Meanwhile, despite expectations of continuing strong sales, price gains are likely to be "much more moderate that in years past," said Elton Ash, regional -vice-president for Re/Max in Western Canada.

"We expect this will remain the trend moving forward, in line with the Canadian economy, as GDP growth also moves ahead at a more subdued pace."

However, Ash said local conditions vary, with inventory shortages driving prices in some markets while others, such as in the case of Saskatchewan and Newfoundland, the local economy has shown extraordinary strength.

"On the whole, this is a very stable and healthy housing market in line with traditional norms, with few exceptions," he said.

Re/Max said first-time buyers have been driving demand in both the smaller and major markets, in turn sparking strong sales activity among move-up purchasers at higher prices.

"As a result, the upper-end of the market has also held up well. There's no question that the spring 2012 market will see all segments working in tandem."

http://www.cbc.ca/news/business/story/2012/03/22/remax-housing.html

One of the fastest growing real estate considerations in America today is something called "staging" your house, meaning furnishing, decorating, outdoor clean-ups and ultimately arranging homes in such a way to attract increased buyer interest.

Earlier this week, I was invited to sit on a panel and give the industry perspective on what has been happening in the first three months of this year regarding new home sales and market trends.

The panel was organized by RealNet Canada Inc., BILD’s official source of new home market intelligence, which at the same time released sales figures for the first quarter. A total of 8,194 new homes were sold across the GTA between January and March this year.

But here’s what stood out to me: 46 per cent of the highrise sales came out of the 905. It’s true that we are seeing more activity outside the City of Toronto, which in the case of highrise sales is partly due to government policy encouraging intensification and development around planned transportation corridors.

Now, before we start imagining the City of Toronto’s skyline in municipalities like Vaughan, Markham or Oakville, I think it’s important to note that highrise projects in the 905 are typically half to one-third the size of what you’d see built in downtown Toronto. Still, the industry is answering the market demand for highrise choices in the 905.

To put offer a little more in perspective, 42 new housing projects were launched over the last three months and 35 more are expected in the next quarter. During the panel discussion I learned that the projects that launched this time last year were mainly lowrise, but this year, 44 per cent of them are highrise projects in the 905 municipalities.

However, the lowrise market led in unit sales so far this year and that leads me to believe that no matter what municipality you want to live in, there will always be affordable housing options for you.

If you’re just entering the real estate market, a condominium unit might be the most affordable way for you to do it. If you’re in the market but need more space, maybe it’s a townhouse or a single-family home that will catch your eye.

But here’s what everyone really wants to know: What does it cost?

Looking at pricing over the last three months, the average price of a new lowrise home in the GTA is $567,567, which has gone up from this time last year by 10 per cent, mainly because of the increase in production costs and government-imposed fees and charges.

The average price of a condominium unit in the GTA is $421,839, down 5 per cent from this time last year and this is mainly because the size of the units are shrinking.

After taking part in the panel discussion this week, my best advice is to research the new projects launching in the city or town where you want to live and see what works for you, your budget and your lifestyle.

PAUL GOLINI JR.

http://www.yourhome.ca/homes/newsfeatures/article/1163941--home-sales-are-rising-in-the-905-regions