Markham Real Estate Today with Asif Khan

2/22/2011 (courtesy AM640 News) Toronto Utilities got the green light to raise rates to cover $18 million in legal costs related to charging too much interest on late payments.
The Ontario Energy Board says to deny them the right to recover the cash would be a detriment to shareholders - namely the cities where they operate.
Ontario Power Generation has asked for a 6.2 percent rate hike as of march 1st. 

Asif Khan, Realtor
Re/Max All-Stars Realty Inc.

RISMEDIA, January 14, 2011—(MCT)—Housing will rebound moderately in 2011, economists at the International Building Show here are predicting, and should gain even more steam in 2012. But the recovery in home building and home sales will vary widely from one part of the country to another, with the states that had the most success during the boom times of the past decade being the last to come back from their historic bust, according to an analysis from the Portland Cement Association, a national trade group.
“The headwinds are still facing us in housing. They are less than they were, but they are still in place,” said Edward Sullivan, chief economist for the PCA, who examined data on mortgage delinquencies, unemployment rates and home-price declines to create a state-by-state recovery prediction.
The housing markets that still face the hardest going, led by Nevada, account for more than 50% of the U.S. housing market, Sullivan pointed out, while those that will recover the fastest make up only 20%. That means the better times in those states won’t do much to lift overall national housing numbers.
Here are the five states where housing is predicted to recover the quickest:
1. North Dakota. North Dakota has the lowest mortgage delinquency rate of any state, just 0.9%. It also has shown the best home price performance of any state, with values up 7.2% from the peak of everyone else’s boom in 2005 to what was a trough for everybody else in 2010.Only Texas, Vermont and South Dakota also reported gains over that time. The category the state did not lead was unemployment, which at 7.5% was just about double that of its southern neighbor South Dakota, which at 3.7% boasted the lowest rate.
2. South Dakota. In addition to its low unemployment number, South Dakota also sports the second-lowest mortgage delinquency rate at 1.5%. And the state also managed to steer clear of the home price cliff, with prices having risen 0.5% from 2005 to 2010.
3. Iowa. The Hawkeye State managed to keep its home prices nearly level over the worst five years in history for everyone else, with prices falling just 0.4%. Mortgage delinquencies are only 2.2% of outstanding loans in the state, and the unemployment rate of 6.8% is still well below the national average.
4. Nebraska. At 4.4%, Cornhuskers enjoy the second-lowest unemployment rate in the nation. Just 2.0% of outstanding mortgages are delinquent, and home prices fell only 3.5% from peak to trough, while the average for the country was a 20% drop.
5. Oklahoma. Home prices in the Sooner State fell just 2.3% from peak to trough and mortgage delinquencies are 2.9%. Unemployment is 6.9%.
If you see a pattern in those five states, you’re right.
“The central portion of the country generally will recover first,” Sullivan said. Add Kansas, Texas, Louisiana and Arkansas to that bunch.
Other states that fall into the early-recovery category include Vermont, Hawaii, Montana, Wyoming, New Mexico, Colorado and New Hampshire.
On the opposite end of the spectrum, here are the five states where the housing recovery is expected to be a lot longer in the making:
1. Nevada. The poster child for the housing boom was Las Vegas, but now it’s lights out on Glitter Gulch. The state has the highest mortgage delinquency rate in the country at 8.3%, the highest unemployment rate at 14.4% and has suffered the biggest peak-trough home price declines of any area, a 56.4% tumble.
2. Michigan. Not a state that enjoyed the boom, but one really feeling the bust. It has the second-highest unemployment rate in the nation at 13.1% and mortgage delinquencies hit 5.1% of outstanding loans. Home prices have also fallen hard, 31.7% from the peak.
3. California. The second-highest mortgage delinquency rate in the country at 6.0%, the third-worst unemployment rate at 12.4% and home price declines of 40.8% put the Golden State on a long path to health.
4. Florida. Tying California with a 6.0% mortgage delinquency rate but beating its cross-country rival with a home-price decline of 46.9%. An unemployment rate of 11.7% doesn’t help.
5. Rhode Island. Unemployment trips up Rhode Island, which ties for the fourth-highest rate in the country at 11.7%. Home prices declines were 25.6%, and 4.9% of mortgages are delinquent.
(c) 2011, MarketWatch.com Inc.

RISMEDIA, January 25, 2011—You’ve probably seen those depressingly cheery home-themed TV shows: a couple needs to sell their house, they have an outdated kitchen, and a designer comes in and proceeds to convince them to renovate the kitchen into a stainless-steel-clad shrine to culinary greatness—for tens of thousands of dollars. In an ideal real estate market, that would add value, but in today’s market, expensive pre-sale renovations, for the most part, aren’t worth it. The numbers bear this out: In general, a home remodel will cost quite a bit more than you’ll get back when you sell; remodels done in 2010 will only recoup 60% of their price when the house is sold, according to Remodeling magazine’s 2010 Remodeling Cost vs. Value survey, done in partnership with the National Association of REALTORS® (NAR).
Two of the areas that potential buyers are often most pressured to remodel before selling are the kitchen and bathroom. Here, we’ll tackle both of those rooms, and let you know what to do—and what to avoid—when considering a pre-sale renovation:
Kitchen
-Don’t put in expensive professional-grade cook’s appliances. You may choose a tricked-out, $10,000 Wolf stove, but the buyer may be a loyalist to Viking. Or, even worse, the potential buyer might be a take-out addict.
-Do, however, service the appliances you have, so that they work perfectly. And, if you have seriously outdated appliances that can be replaced for $1,000 or less (like swapping a dingy old fridge for a basic new one), that’s a good idea. Similarly, if there are any appliances that you lack, which most buyers consider essential, it makes sense to buy one (like a dishwasher—you can get a nice model for under $1,000).
-Don’t replace your cabinetry entirely—even if it’s a little outdated. It’s just too subjective. You might think sleek, white Scandinavian cabinets are the way to go, but you’ll be in a bind if your potential buyer prefers dark wood.
-Do invest in cabinet refacing if your cabinets are extremely outdated. Many refacing companies will give your cabinets a fresh façade for well under $2,000, and it’s a good investment in creating a positive impression of the room without doing a pricey knock-down.
-Don’t go granite crazy. Or marble. Or etched-Murano-glass-accented tile. Spending thousands of dollars on a new countertop and backsplash is downright dangerous, as there are so many different options these days, it’s impossible to find one that will please most people.
-Do hire a professional cleaning company to come in and make what you have sparkle. While this won’t magically make your tile look magazine-spread-worthy, it will certainly make it look a lot better, as discolouration from age often makes tile look even worse.
Bathroom
-Don’t do expensive tub/shower repairs or replacements. Just like with the big-ticket kitchen fixes, this is a matter of taste. If you put in a round jetted tub, what if the buyer wants square? And is an amethyst-crystal steam shower really something everyone will love?
-Do replace dated bath and shower fixtures; this can be done generally quite inexpensively. For instance, if you have a 30-year-old, tiny showerhead, replacing it with a large, rainwater-style model will lend a subtle spa-like quality without costing a lot.
-Don’t replace your smallish vanity with a new, built-in model. A lot of remodelers emphasize the intrinsically relaxing qualities of having all your toiletries, towels and even reading material beautifully organized in one big unit made of high-end wood, marble and chrome. And it is certainly beautiful. But it’s also a risky choice, and a matter of taste.
-Do freshen up the vanity area. Invest in a big mirror and put bright lights over it. And a few hundred dollars spent on a nice faucet is well worth it, as, like the showerhead, it’s a true basic—and updating the basics, in most homes and markets, is all you should be focusing on.
Other tips for redoing your kitchen and bathroom frugally
Kitchen:
-Declutter your counters. A disorganized kitchen is a buyer-deterrent. Clean up the counters and pare down countertop items to the essentials—toaster, microwave, coffee pot and not much more than that.
-Keep your pantry and cabinetry clutter-free too. You don’t have to alphabetize your cereals—just know that potential buyers will probably open those cabinets, so they won’t want a ladle falling out on their head.
-Give your kitchen table or breakfast bar some life. It’s simple—placemats, a colourful vase or two and a tasteful flower arrangement will reinforce the idea that the kitchen is the heart of the home.
Bathroom:
-If you want to add a little life to the wall, try a simple, straight-lined wood or stainless-steel floating shelf with a few candles on it. It’s an elegant, boutique-hotel touch that doesn’t cost much.
-Toss down a colourful floor mat. Bathrooms are often devoid of colour; this is a great way to add that colour, and a little warmth.
-Again, clear clutter. Even your beauty essentials shouldn’t be on the counter if you’re in the open house stage.

Dan Steward is president of Pillar To Post Professional Home Inspections.
For more information, visit www.pillartopost.com.

RISMEDIA, January 20, 2011—HomeGain.com, a website to offering Web-based, free instant home values, announced that it has released the results of its nationwide home improvement and home staging Home Sale Maximizer survey.
HomeGain surveyed nearly 600 real estate professionals nationwide and configured a list of the top 10 do-it-yourself home improvements that cost under $5,000 and benefit sellers most when they sell their homes.
According to the HomeGain survey, the top five home improvements that real estate professionals recommend to home sellers based on average cost and return on investment (from highest to lowest ROI) are:
1. Cleaning and de-cluttering – ($290 cost / $1,990 price increase / 586% ROI)
2. Lightening and brightening – ($375 cost / $1,550 price increase / 313% ROI)
3. Home staging – ($550 cost / $2,194 price increase / 299% ROI)
4. Landscaping – ($540 cost / $1,932 price increase / 258% ROI)
5. Repairing electrical or plumbing – ($535 cost / $1,505 price increase / 181% ROI)

Cleaning and de-cluttering continues to rank as the top suggested home improvement (since the survey was originally conducted in 2000), recommended by 99% of real estate professionals, costing less than $300 and returning a value of nearly $2,000 to the home’s sale price, or a 586% return on investment.
“Sellers need to prepare their homes for sale before putting them on the market,” said Louis Cammarosano, General Manager at HomeGain. “Homes that have initial appeal have a better shot at selling faster and closer to the asking price than homes rushed to the market with no improvements.”
Rounding out the top 10 low cost, do-it-yourself home improvements includes: updating electrical systems and/or plumbing, updating the kitchen and bathrooms, replacing or shampooing carpets, painting interior walls, repairing damaged floors, and painting the outside of the home.
The home improvement projects with the highest price increases to a home’s resale value are updating the kitchen ($1,265 cost / $3,435 price increase), followed by painting the outside of the home ($1,467 cost / $2,222 price increase) and home staging ($550 cost / $2,194 price increase).

 

Paul Vieira, Financial Post· Monday, Jan. 17, 2011

OTTAWA — Finance Minister Jim Flaherty unveiled changes Monday morning to mortgage lending rules that would see Ottawa stop backing home loans greater than 30 years and make it more difficult for households to use their property to access financing.

The changes, as reported by the National Post on Sunday, emerged as worries escalate among Bay Street leaders and the Bank of Canada about the record levels of household indebtedness, and how conditions could deteriorate unless pre-emptive action was taken.

The key change announced is that mortgages with amortization periods longer than 30 years will no longer qualify for government-backed mortgage insurance, which is required for buyers with less than a 20% down payment on a home. The previous limit was 35 years.

Also, Mr. Flaherty lowered the maximum amount Canadians can borrow against the value of their homes, to 85% from 90%, on a refinancing; and removed federal government backing for home equity lines of credit, or so-called HELOCs, whose popularity soared in the past decade with growth double that of mortgage debt.

"Canada's well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries," Mr. Flaherty said at a media conference. "The prudent measures announced [Monday] build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future."

Executives at Bank of Montreal applauded the government's move.

“The actions announced are prudent, measured, responsible and timely,” said Frank Techar, president of personal and commercial banking at Bank of Montreal.

The changes will be implemented in stages, with adjustments on amortization and refinancing limits coming into force on March 18. Government backing on HELOCs will be removed as of April 18.

The government said exceptions would be allowed after the new measures come into force when needed to satisfy a home purchase or sale and financing agreement struck before the March and April in-force dates.

The minimum down payment, at 5%, will remain as is. Further, there are no plans to target condominium purchases by requiring monthly condo fees be added to the list of expenses that is measured against income to decide whether a buyer can afford a mortgage.

Analysts at Scotia Capital said in a morning note the changes had been anticipated for some time. “We remain of our long-held belief that Canada is tapped out on housing and household finance variables that are all at cycle tops, in contrast to the U.S. that has already moved well off cycle tops and may be creating some pent-up demand,” said economists Derek Holt and Gorica Djeric.

The changes to the country’s mortgage rules -- the second in as many years -- emerge amid rising concern about the record levels of household debt, which measured as a ratio of money owed to disposable income nears a startling 150% as of the third quarter of last year. That surpasses the level of debt held by American households, whose appetite for borrowing helped stoke the financial crisis of a few years ago.

The Bank of Canada recently warned debt levels are growing faster than income, and the risk posed by consumer indebtedness to the domestic economy would continue to escalate without a “significant change” in how consumers borrow and banks lend.

Bank of Canada governor Mark Carney said policy makers have a “responsibility” to look at the benefits of pre-emptive action. Joining the chorus have been chief executives at the big banks, most notably Ed Clark at Toronto-Dominion Bank, in publicly advocating for tougher mortgage standards.

Last Friday, Prime Minister Stephen Harper acknowledged his government was considering changes to the rules governing mortgages.

 In February of 2010, Mr. Flaherty moved to toughen up the mortgage rules amid worries that Canada was in the midst of a housing market bubble. The reforms, since introduced, compelled borrowers to meet standards for a five-year fixed-rate mortgage, even if the buyer wanted a shorter-term, variable rate loan; reduced the amount Canadian can borrow against their home, to 90% of the property value from 95%; and require purchasers of rental properties to issue a 20% down payment as opposed to 5%. The moves played a role, observers say, in slowing down real estate activity.

The Scotia Capital analysts suggested government regulation was the way to go in terms of curbing household appetite for credit as opposed to the Bank of Canada raising interest rates, which they said would be “imprudent” at this time.

The central bank issues its latest rate statement on Tuesday and it is expected to hold its benchmark rate at its present 1% level as signs indicate the economy may be benefiting from renewed business and consumer confidence in the United States.

Stewart Hall, economist at HSBC Securities Canada, said the extraordinarily low-rate environment “provides all the incentive to consumers to borrow and spend and none of the incentive to save. You can try to [regulate] that away but that is apt to be fraught with significant frustration.

Final numbers are in for December, and thus for 2010! It was a great year
for homeowners, as values appreciated 9% on average. As we said throughout
the year, the negativity created by the media about home ownership was just
a fabrication of facts. At the beginning of 2010, we predicted unit sales
to hold tough and projected 2010 sales to fall about 2%. Looking back,
sales in units were down slightly (but just by 1%) over a banner year in
2009. We had predicted a modest 5-6% increase in price, and with the hot
market in the first four months, we saw an average increase of 9% for the
year. We had also predicted that interest rates would remain low, however
rise slightly from their historically low rates. We saw this take place
late in the summer months. What we have learned is that the general public has started to tune out the
negativity in the media. Mid-year speculation of prices dropping by upwards
of 30% are laughable now, but instilled fear throughout the summer and into
fall. Low interest rates continued to fuel the market. The strong Canadian
economy, coupled with a strong dollar had consumer confidence at a high. For 2011, our projections will be very similar to 2010. Sales will hold
strong, and with a shortage of inventory on the market, prices will climb
slightly throughout the winter months. We are in a sellers' market right
now and will continue to be until inventory shows a supply of two to three
months. As a buyer, you want to scoop up the "good" properties, or be left
scrambling for the "average" ones that will flood the market in the spring.
A common mistake buyers make is trying to time the market. Real Estate is
all about the amount of time you spend IN the market, now about trying to
TIME the market. Land will always appreciate, and normal appreciation is a
given. When you get artificial appreciation which is around 25% - 50%,
similar to what we say five or six years ago in some American markets, that
is where you could be faced with bubbles and other problems. Trying to time
the market will have you renting for the long haul and cost you more money
in terms of opportunity costs, as properties continue to appreciate without
you.

Attached is the final Market Watch for 2010 and shows how the Greater
Toronto Area did in 2010. For a specific analysis of your home, street, or
neighbourhood, please call me at 416-985-5426 and I'll be happy to provide
you with this. Anytime you have any questions or concerns with stories in
the media, please call and we will provide you with the true story about
property values and the Real Estate market.

Regards,

Asif

TORONTO, ONTARIO--(Marketwire - Jan. 6, 2011) - Greater Toronto REALTORS(r)
reported 4,395 existing home sales for the month of December, bringing the
2010 total to 86,170 - down by one per cent compared to 2009.

"Market conditions were anything but uniform in 2010. We went from
super-charged sales activity during the first four months of the year, to a
marked drop-off in transactions in the summer and then in the fall saw sales
climb back to levels that are sustainable over the longer term," said TREB
President Bill Johnston.

"New Federal Government-mandated mortgage lending guidelines, higher
borrowing costs and misconceptions about the HST caused a pause in home
buying in the summer. As it became clear that the HST was not applicable to
the sale price of an existing home and buyers realized that home ownership
remained affordable, market conditions improved," continued Johnston.

The average home selling price in 2010 was $431,463 - up nine per cent in
comparison to the 2009 average selling price of $395,460. In December, the
average annual rate of price growth was five per cent.

"At the outset of 2010, we were experiencing annual rates of price growth at
or near 20 per cent. This was the result of extremely tight market
conditions coupled with the fact that we were comparing prices to the trough
of the recession at the beginning of 2009," said Jason Mercer, TREB's Senior
Manager of Market Analysis.

"Balanced market conditions in the second half of 2010 resulted in more
moderate home price appreciation," continued Mercer. "Expect the average
selling price to grow at or below five per cent in 2011. With this type of
growth, mortgage carrying costs for the average priced home in the GTA will
remain affordable for a household earning an average income."

Home sales in the GTA were spread across a number of different housing types
in 2010. Detached homes accounted for 49 per cent of total sales.
Condominium apartments accounted for an additional 25 per cent per cent of
sales. Other housing types including townhomes and semi-detached houses
accounted for the final 26 per cent. In some areas like TREB's central
districts the mix was quite different, with condominium apartments
accounting for 61 per cent of total sales.

"Ownership housing is available in a diversity of types and price points
across the GTA, allowing plenty of choice for first time buyers and
experienced home buyers alike. This housing diversity is one factor that
continues to make the GTA a popular choice for households and businesses,"
concluded Johnston.

WATCH Market Watch video at: www.youtube.com/TREBChannel.

Summary Of December Sales And Average Price

December

2010

2009

Sales

Average Price

Sales

Average Price

City of Toronto ("416")

1,856

$463,416

2,403

$441,607

Rest of GTA ("905")

2,539

$412,403

3,138

$389,205

GTA

4,395

$433,946

5,541

$411,931

Source: Toronto Real Estate Board

Sales & Average Price By Home Type

December-2010

Sales

Average Price

416

905

Total

416

905

Total

Detached

576

1,395

1,971

679,631

503,841

555,475

Yr./Yr. % Change

-25%

-17%

-19%

6%

6%

5%

Semi-Detached

169

265

434

471,167

337,423

389,503

Yr./Yr. % Change

-33%

-23%

-27%

6%

2%

3%

Townhouse

197

445

642

397,638

309,402

336,477

Yr./Yr. % Change

-17%

-23%

-22%

5%

5%

6%

Condo Apartment

892

377

1,269

342,009

251,578

315,143

Yr./Yr. % Change

-20%

-13%

-18%

6%

4%

5%

Source: Toronto Real Estate Board

Greater Toronto REALTORS(r) are passionate about their work. They adhere to
a strict Code of Ethics and share a state-of-the-art Multiple Listing
Service. Serving over 31,000 Members in the Greater Toronto Area, the
Toronto Real Estate Board is Canada's largest real estate board.

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

Google me: Asif Khan Re/Max

Follow me on Twitter Become a Fan on Facebook

As Team Canada's Juniors get set to take on the big bad Russians for the coveted Gold Medal at the World Junior Hockey Championships, our friend Dave Sanford has shared a prayer:

Our Father who art in Buffalo, hockey be thy name. Thy will be done. The gold will be won. On the ice, as well as in the stands. Give us this day our hockey sticks, and forgive us our penalties, as we forgive those who cross-check against us. And lead us not into elimination, but deliver us to victory. In the name of the fans, Gold Medal, and in the name of Team Canada. Amen!

Go Canada Go!

Hello:
I would like to take this opportunity to thank you for all you did to make 2010 a great year. Your care, prayers, trust, and loyalty are greatly appreciated, and help us become better every year.

In the final week of 2010, we often reflect upon the year that was. 2010 was a special year, and like any other year it had its highs and lows. We lost a few great people from our families, friends and the world we live in. The loss of these individuals are always sad moments, however we are fortunate to have had them in our lives and the memories created during our time with them will live forever.
We celebrated victories of the year and have new memories from those, memories that will remain with us for the rest of our lives.
Trying times we faced during 2010 helped to make us stronger and are the stepping stones with which we will make 2011 our best year yet. Thus, we are thankful for these moments as well.

2010 will go down as one of Canada's most memorable. The Vancouver Olympics stole the show, highlighted by Canada tying for the most Gold Medals won and most of all for showing the world that Hockey is our game as our Men and Women made us proud.
The unforgettable G-20 in Toronto stole the spotlight in the summer as out of control hoodlums went on a rampage through our beloved city. Real bullets would have solved the problem quickly, however police chose a politically correct manner - which was challenged by the demonstrators anyway. A black mark over the year, but a learning experience just the same.
Arguably, the third biggest story of 2010 was our HOT Real Estate Market. Touted in late 2009 as the engine that would drive our nation to economic recovery, our Real Estate Market did not disappoint. The world looked on as Canada led the way out of the recession, and our dollar continued its assault on the American greenback.

The first quarter saw homes selling quick and for great values as inventory was at an all time low and historically low interest rates fuelled sales activity as renters and new immigrants jumped into home ownership. To say the year opened with a bang would be an understatement, it was more like an explosion!

As the second quarter arrived, inventory levels started to rise as more sellers jumped in and thus normal market conditions prevailed. We saw a balance of supply and demand and pricing started to settle. The media saw this as a "bubble about to burst". Whether it was creative journalism or just a lack of understanding on the media's part, the reports scared people. This, coupled with the competition bureau's attack on the real estate industry would become key factors for a slower third quarter. However, year-to-date comparables showed that Real Estate was still strong.

As we headed into the third quarter there were a couple of other factors that played roles for a quieter three months: 1. sellers that would have sold in the spring market accelerated their plans to jump into a hot winter market, and 2. buyers wanting to buy in the first and second quarters due to misconceptions about the HST being introduced in July. Along with the media's and Competition Bureau's continued attacks on the market, inventory levels started to drop. Sellers decided to hold off until the dust cleared and buyers held off as they waited for the "imminent" price drops being discussed in the media. At this time, we had our buyers scooping up deals from panicking sellers and told our sellers to wait a few weeks as a sellers' market was around the corner. Sure enough, we called it right!

The fourth quarter arrived and, being faced with less than two months of inventory, prices started to climb as buyers jumped off the fence one by one. A settlement was made with the Competition Bureau and exposed the whole "investigation" as much-a-do about nothing! Multiple offers returned, as always happens in a market low on inventory. Much to the media's disappointment, prices did not fall during the course of the year. As we await December totals to finalize our statistics, a very normal 7% increase in value will be the approximate result. Unit sales were down approximately 5% off a banner year in 2009, therefore we declare the 2010 Real Estate Market one of the strongest in recorded history.
As we head into 2011, we are predicting a modest increase in value of approximately 4-5% with sales remaining steady at 2010 levels. The first quarter will continue to be strong as we have less than 6 weeks of inventory on the market. Buyers are out there looking to take advantage of low interest rates. As the second and third quarters arrive, normal conditions will once again prevail. Interest rates will not increase significantly, therefore it will be a great year to buy and move up to your next home. With our dollar at par with the American dollar, we have initiated a program to help you find and purchase property in the USA to help build your portfolios and have established affiliations with colleagues across the world to assist you in buying and selling properties everywhere. Our slogan for 2011 is "No Limits, No Excuses, No Fear!". We are prepared to do what it takes to get you to realize your dreams. We will make it happen.

Wishing you health, happiness and much success in 2011, and assuring you of our commitment to helping you attain your Real Estate goals and dreams.

Happy New Year, and Thank You so much once again.

Best regards,

Asif