May Sales Remain High
Greater Toronto REALTORS reported 9,470 sales through the Multiple Listing Service (MLS) in May, representing a one per cent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.
“The pace of transactions slowed in May following record-setting sales in February, March and April,” said Toronto Real Estate Board President Tom Lebour. “Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes.”
New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – up 13 per cent compared to the average of $395,609 recorded in May 2009.
“The gap between listings and sales has widened, which means there is more choice for buyers,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The annual rate of price growth will slow in the second half of 2010, from the current double digit pace into the single digits.”
Median Price
In May, the median price was $376,750, from the $337,000 recorded during May of 2009.
Sunday, June 13, 2010
Wednesday, May 26, 2010
Will Housing Market Change In Next Two Years
There will be no drastic drop in Canadian housing prices, the Canadian Real Estate Association said Thursday, because house prices will stabilize and climbing household income will make owning a home more affordable.
Responding to reports from some of the country’s largest banks that prices could see drops of as much as 10 per cent in the next two years as higher mortgage rates and rising prices make housing more expensive, the association said the naysayers are ignoring the cyclical nature of Canada’s real estate market.
“The relationship between average price and income has recently been cited as portending a U.S.-style correction in Canadian home prices,” said the association’s chief economist Gregory Klump. “However, such warnings ignore the longer-term relationship between prices and income, and disregard typical Canadian housing market cycle dynamics.”
The housing market has been key to Canada’s recovery, with average prices up 23 per cent from their recessionary lows at the end of April. The average price of a home at the end of April was $344,968, the highest on record and 7 per cent higher than before the recession.
In a report Tuesday, CIBC economist Benjamin Tal said his analysis showed that 17 per cent of Canadian homes had overshot their “fair value” by as much as 14 per cent by the end of April. He said there wasn’t the imminent threat of a crash, but warned prices could drift as much as 10 per cent lower in the next two years as more supply comes onto the market.
“The house market is overshooting, that’s a given,” he said in an interview. “The market is already responding, supply is increasing very quickly and the market is correction itself. That is much different than a panicked crash.”
TD Bank recently suggested prices could fall by 2.7 per cent in 2011. The Canadian Real Estate Association’s own forecast suggests a decline of 1.5 per cent by the end of next year. Only the Canada Mortgage and Housing Corp. calls for higher prices in 2011, with an anticipated gain of 1.3 per cent.
However, Mr. Klump said worries have been blown out of proportion because Canada’s market has always been characterized by periods of sharp growth followed by periods of relative inactivity. By contrast, he said, incomes tend to climb over time giving home owners a chance to catch up to higher prices.
Investor Education:
Should I buy a home now, or wait and save more money?
Understanding house prices
Is it better to buy a home, or choose some other investment? Charlie's story
What makes buying a home different from other investments?
What are some renovations that add value to my home?
“The Canadian housing market is now widely thought to be at, or very near, the top of a cycle, and the ratio of home prices to incomes is currently high. This ratio will revert to its long-term average as it always does as part of a normal housing market cycle,” he said.
“History suggests, however, that it will not do so by means of a significant correction in home prices. The more likely scenario is that home prices will stabilize, giving incomes a chance to catch up again.”
The association – which represents about 100,000 real estate agents, provided a list of reasons it believes a sharp correction is unlikely:
– The “vast majority” of Canadians have mortgages they can afford;
– Sixty-six per cent of mortgages have terms of at least five years;
– A “substantial” percentage of mortgage holders have switched to fixed rate mortgages to avoid interest rate sensitivity. Those with variable-rate mortgages “tend” to have higher incomes;
– Over the past 12 months, most new mortgages (64 per cent) have amortization periods of 25 years or less. This is an increase compared to 54 per cent one year ago;
– Twenty five per cent of mortgage holders recently increased their home equity via lump sum payments against the principal and/or by increasing the amount of their mortgage payments above their scheduled payment;
– Most mortgage holders (77 per cent) have a home equity position of at least 25 per cent;
– Job losses incurred during the recent recession “are the primary cause of the recent rise in mortgage arrears. With employment having stabilized, the arrears rate has likely reached its cyclical peak.”
“Canada is widely believed to soon enter a typical demand-driven housing downturn due to recent price increases and an expected rise in interest rates. While an unexpected spike in interest rates is always possible, rates are most likely to rise at a measured pace during a new era of fiscal restraint,” Mr. Klump said.
“Canada’s solid mortgage market trends, conservative lending practices, and prudent borrowing by home buyers means that Canada will avoid a U.S.-style housing price correction.”
Want to Know Online, How Much Your House Worth? Search Properties
More Information Contact Avi Dhaliwal 416-882-1200
Responding to reports from some of the country’s largest banks that prices could see drops of as much as 10 per cent in the next two years as higher mortgage rates and rising prices make housing more expensive, the association said the naysayers are ignoring the cyclical nature of Canada’s real estate market.
“The relationship between average price and income has recently been cited as portending a U.S.-style correction in Canadian home prices,” said the association’s chief economist Gregory Klump. “However, such warnings ignore the longer-term relationship between prices and income, and disregard typical Canadian housing market cycle dynamics.”
The housing market has been key to Canada’s recovery, with average prices up 23 per cent from their recessionary lows at the end of April. The average price of a home at the end of April was $344,968, the highest on record and 7 per cent higher than before the recession.
In a report Tuesday, CIBC economist Benjamin Tal said his analysis showed that 17 per cent of Canadian homes had overshot their “fair value” by as much as 14 per cent by the end of April. He said there wasn’t the imminent threat of a crash, but warned prices could drift as much as 10 per cent lower in the next two years as more supply comes onto the market.
“The house market is overshooting, that’s a given,” he said in an interview. “The market is already responding, supply is increasing very quickly and the market is correction itself. That is much different than a panicked crash.”
TD Bank recently suggested prices could fall by 2.7 per cent in 2011. The Canadian Real Estate Association’s own forecast suggests a decline of 1.5 per cent by the end of next year. Only the Canada Mortgage and Housing Corp. calls for higher prices in 2011, with an anticipated gain of 1.3 per cent.
However, Mr. Klump said worries have been blown out of proportion because Canada’s market has always been characterized by periods of sharp growth followed by periods of relative inactivity. By contrast, he said, incomes tend to climb over time giving home owners a chance to catch up to higher prices.
Investor Education:
Should I buy a home now, or wait and save more money?
Understanding house prices
Is it better to buy a home, or choose some other investment? Charlie's story
What makes buying a home different from other investments?
What are some renovations that add value to my home?
“The Canadian housing market is now widely thought to be at, or very near, the top of a cycle, and the ratio of home prices to incomes is currently high. This ratio will revert to its long-term average as it always does as part of a normal housing market cycle,” he said.
“History suggests, however, that it will not do so by means of a significant correction in home prices. The more likely scenario is that home prices will stabilize, giving incomes a chance to catch up again.”
The association – which represents about 100,000 real estate agents, provided a list of reasons it believes a sharp correction is unlikely:
– The “vast majority” of Canadians have mortgages they can afford;
– Sixty-six per cent of mortgages have terms of at least five years;
– A “substantial” percentage of mortgage holders have switched to fixed rate mortgages to avoid interest rate sensitivity. Those with variable-rate mortgages “tend” to have higher incomes;
– Over the past 12 months, most new mortgages (64 per cent) have amortization periods of 25 years or less. This is an increase compared to 54 per cent one year ago;
– Twenty five per cent of mortgage holders recently increased their home equity via lump sum payments against the principal and/or by increasing the amount of their mortgage payments above their scheduled payment;
– Most mortgage holders (77 per cent) have a home equity position of at least 25 per cent;
– Job losses incurred during the recent recession “are the primary cause of the recent rise in mortgage arrears. With employment having stabilized, the arrears rate has likely reached its cyclical peak.”
“Canada is widely believed to soon enter a typical demand-driven housing downturn due to recent price increases and an expected rise in interest rates. While an unexpected spike in interest rates is always possible, rates are most likely to rise at a measured pace during a new era of fiscal restraint,” Mr. Klump said.
“Canada’s solid mortgage market trends, conservative lending practices, and prudent borrowing by home buyers means that Canada will avoid a U.S.-style housing price correction.”
Want to Know Online, How Much Your House Worth? Search Properties
More Information Contact Avi Dhaliwal 416-882-1200
Wednesday, May 19, 2010
Mid May 2010 Housing Resale Market
TORONTO, ONTARIO (May, 2010) - Greater Toronto REALTORS reported 4,887 sales through the Multiple Listing Service (MLS) during the first two weeks of May.
This represented a seven per cent increase compared to the 4,561 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 10,059.
"The average household looking to purchase a home continued to benefit from affordable opportunities in the first half of May," said Toronto Real Estate Board President Tom Lebour.
"The number of done deals will remain high for the remainder of 2010, but will dip from record levels."
The average price for May mid-month transactions was $448,641 – up 12 per cent compared to the average of $399,811 recorded during the first 14 days of May 2009.
"The total number of homes currently listed in the GTA is now within a more normal range. As buyers benefit from more choice in the second half of 2010, average selling prices will grow at a slower pace.
Want to Know Online, How Much Your House Worth? Search Properties
More Information Contact Avi Dhaliwal 416-882-1200 or Visit www.askhomevalue.com
This represented a seven per cent increase compared to the 4,561 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 10,059.
"The average household looking to purchase a home continued to benefit from affordable opportunities in the first half of May," said Toronto Real Estate Board President Tom Lebour.
"The number of done deals will remain high for the remainder of 2010, but will dip from record levels."
The average price for May mid-month transactions was $448,641 – up 12 per cent compared to the average of $399,811 recorded during the first 14 days of May 2009.
"The total number of homes currently listed in the GTA is now within a more normal range. As buyers benefit from more choice in the second half of 2010, average selling prices will grow at a slower pace.
Want to Know Online, How Much Your House Worth? Search Properties
More Information Contact Avi Dhaliwal 416-882-1200 or Visit www.askhomevalue.com
Saturday, May 15, 2010
Find House In 10 Easy Steps
STEP ONE
Congratulations on your decision to purchase a new home. Your first step toward buying your new home will be to analyze your needs. By analyzing your needs you will be able to get a clear picture of exactly what you want your new home to look like and how it should function for you.
First, you should write down why you are looking for a new home. For example, are you currently renting and would like to have a home where you can begin building equity? Maybe you recently married and have outgrown your current residence. Or, maybe you have just gotten a promotion which requires you to move to a new city. These factors will all have a bearing on how you approach your home search.
Second, establish a time frame that you would like to stay within for buying your home. Depending on your reasons for wanting a new home and the current state of the market in the area you are looking to buy, you should be able to come up with a rough guideline which you can finalize at a later time.
Last, you most likely have a mental picture of what you would like your house to look like and what features it should have. It's very important to write these ideas down to avoid any ambiguity later in your home search. You should make at least two lists: one should be a list describing your dream home and the other should list the features of the home that are an absolute must have in order to buy it. In a perfect world, your new home would fulfill both lists 100 percent. It is more likely that you will end up blending the two lists into a schedule of prioritized items as you progress through the buying process. This is a natural and evolutionary process as you get clearer about what you want and what is available.
I can save you time and money by putting my expertise to work for you. I will be able to help you organize your wants and needs and then assist you in realizing how your wants and needs will fit into your home purchase plan. I will be able to helpfully focus your energies into what is possible for you and your family.
STEP TWO
Now that you have your list of features you want in your new home, you are ready to start looking! Well, not just yet. You are going to need to know in what price range to look. There are two ways to go about this. You can get prequalified or preapproved for a mortgage. Either way you will need to contact a mortgage company. There are some key differences between prequalification and preapproval for a loan that you need to be aware of. Loan prequalification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the Internet. The prequalified amount is based solely on the information you provide. In most markets, prequalified buyers usually hold little clout compared to preapproved buyers due to the fact that the information given during the prequalification process is not thoroughly investigated and therefore may be unreliable. Where a preapproved buyer is actually approved for a loan of a certain amount, a prequalified buyer is only told that they might be approved for a certain amount.
Preapproval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being preapproved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You can see how being preapproved would be more attractive to a seller than just being prequalified. The type of mortgage you apply for will depend on many factors, but the majority of that decision will be based on your ability to pay a monthly installment. If you can only afford a $1000 dollar a month payment, you are not going to go out and buy a $500,000 home, unless you have a large sum of money set aside to make a sizable down payment! Financial planners say that you shouldn't pay more than 32% of your gross income for housing (that includes principal, interest, taxes). Depending on your debt to income ratio, that percentage may change. Once you have determined what you can afford, the next step is to choose a mortgage plan. There are many different mortgages out there, so take some time and explore all of the possible plans for which you qualify. You could save yourself thousands of dollars in the long run!
I can save you time and money by being your professional guide through the entire loan process. They will be able to counsel you on the advantages and disadvantages of certain types of loans and help you understand the "real" cost of a mortgage. I will also act as your personal advocate and liaison between you and the lender as you proceed through the approval process and closing by working with your lender on a regular basis.
STEP THREE
Now that you have your list of needs and wants and you know how much you can afford to spend, it's time to look at some houses! Well, not just yet. Step back for a moment and consider the larger picture. People don't just buy a house; they buy the neighborhood the house is in. Think about that...if you found the perfect house but it was in a neighborhood that was not to your liking, would you make an offer on it? Most likely the answer would be, "No." So, you will need to make another list of what type of neighborhood you want to live in. You will most likely want to consider things like how living in the neighborhood will effect your drive time to and from work, what amenities are offered (swimming pool, tennis courts, park, etc.), and, if you have children who are attending school or soon will be, what school district you will be in and how close the schools are. You may even want to make two lists just like you did with your home criteria.
I can save you time and money by taking the information from your list of needs and wants for your home, your preapproval, and your list of needs and wants for the neighborhood and incorporating them into a broad search profile which will then be narrowed down to specific areas dictated by the market in which you will be looking. My experience in the local market will be an invaluable resource during this step.
STEP FOUR
At this point you will have a good idea of what you can afford and what type of neighborhood you will want to live in. Taking that information into consideration you are ready to embark on your actual home search. If you don't know much about the city that you are moving to you will most likely want to start your search by finding neighborhoods that meet your criteria and then narrowing your search to particular homes in the area. There are a few ways to go about doing this. You can access local publications highlighting available real estate in the area, you can contact local Neighborhood Associations, visit the local Chamber of Commerce, look on the Internet, and you can even drive through neighborhoods that you feel would meet your needs. Driving around a particular area looking for a home that is for sale is good because you can actually see the house, but it can be very time consuming and very "hit or miss."
I can save you time and money by keeping up-to-date on available properties that possibly meet your criteria and I will screen these properties for you. You can eliminate the haphazard searching through papers and the Internet and let the listings come to you through me. Then, when you find one that you like, I can arrange for you to walk through the property when it is convenient for you.
STEP FIVE
Now that you have found the home you would like to purchase, it's time to make an offer. Taking into account the recent sales of homes in that neighborhood which are similar in size, quality, conveniences, and amenities, what are you willing to pay for the home? Make sure that you have everything down in written form... no verbal agreements. Present the seller with a written document detailing what needs to be done by both parties to execute the transaction. The contract should protect the best interests of all parties involved and should be comprehensive in nature. Once it is accepted by the seller, it may be too late to make any changes, so make sure review your offer thoroughly before submitting it. The contract, though not limited to this list, should include the following: A legal description of the property The offering price The down payment Financing arrangements A list of fees and who will pay them Amount of the deposit Inspection rights and possible repair allowances The method of conveying the title and who will handle the closing A list of appliances and furnishings which will stay with the home The settlement date Any relevant contingencies. Remember that the legalities of this phase are very important. If you have any questions or concerns, they need to be addressed right away. After all, no one has ever said at their closing, "I wish I had asked fewer questions."
I can save you time and money by making sure that your contract meets all the legal requirements according to local and national guidelines. I will be able to expertly advise you on how to create an offer that will have the best chance of being accepted. Also, I will ensure your financial position as the buyer by including any necessary contingencies which would protect you if a particular requirement is not met.
STEP SIX
Once your offer is made there may need to be some negotiating in order to reach an agreement. Keep in mind that almost everything is negotiable when you are buying a house. This can give you a great deal of leverage in the buying process, that is, if you have adequate information and you use it in an appropriate manner. Some of the things that you may have to negotiate on are:
The price Financing Closing costs Repairs that need to be done Appliances and fixtures Landscaping Painting Occupancy time frame. The key to successful negotiating is keeping in mind that the end result must make both you, the buyer, and the seller happy. Otherwise, negative feelings will persist throughout the remainder of the process and someone may walk away feeling that they were not treated fairly.
I can save you time and money by representing your best interests and negotiating on your behalf. I have the knowledge and expertise necessary to make sure that your offer is accepted at the best price and terms possible for you.
STEP SEVEN
After your offer has been accepted, the property will need a thorough examination. Working with your lender, you may need to have a formal appraisal and a survey done for the property designated in the contract. A property inspection, a foundation inspection, and an environmental inspection may also need to be completed to make sure that the property is up to the standards set forth in your written agreement. If there are issues or inconsistencies brought to light during this time, it may delay or even nullify the contract depending on the contingencies set forth in the contract. Having these procedures done in a timely and professional manner is a must. Investigate each vendor to make sure that they are reputable and have a clean operational history.
Homeowner insurance is another very important item that will need to be taken care of at this point. Insurance experts recommend that you obtain insurance equal to the full replacement value of the home. Unless you have insurance coverage on the home, the closing can not proceed.
I can save you time and money by supervising the coordination of all necessary vendors and serving as your advocate when working with each vendor. I will make sure that the vendors have access to the property at the appropriate times to perform their procedures and oversee the execution of those procedures on your behalf. My experience in this area will be invaluable in making sure that everything is completed on time and in a professional and legal manner.
STEP EIGHT
As the closing date draws near you will need to be in contact with the moving company or closing lawyer and your lender to make sure that all the necessary documents are being prepared. You will also need to confirm that the documents will be delivered to the correct location so they can be reviewed and that they will be ready on the appropriate date. At this point, you should find out what form of payment you will need to bring to the closing for any unpaid fees. Make sure that your payment is made out to the appropriate party.
I can save you time and money by coordinating the necessary documentation with your closing lawyer. I can work with the closing lawyer as your consultant to insure thoroughness, accuracy, and timeliness. Making sure that each document is ready and available will enable you to have a quick, easy closing.
STEP NINE
Closing is where ownership of the home is legally transferred from the seller to the buyer. It is a formal meeting in which most parties involved in the buying/selling process will attend. Closing procedures are usually held at the lawyer's office. Your closing officer coordinates the document signing and the collection and disbursement of funds. In order for the closing to go smoothly, each party involved should bring the necessary documentation and be prepared to pay any related fees (closing costs). There may be more than one form of acceptable payment for your closing costs so ask the closing lawyer which form of payment will be required and to whom it should be paid. Sellers sometimes pay for a portion or all of the closing costs, depending on local market conditions, terms of thepurchase contract, and the seller's cash and timing considerations. Any such concessions should be acknowledged in writing. Most lenders will allow a credit from the seller to the buyer for the non-recurring closing costs. However, they usually won't allow a credit that reduces the amount of the buyer's down payment or any of the buyer's recurring costs, such as expenses for fire insurance premiums, Private Mortgage Insurance, or property taxes.
I can save you time and money by being present at the closing reading the documents on your behalf and answering any questions or helping to resolve any issues that may come up. I will also be available to manage any last minute or unexpected details that come up.
STEP TEN
Congratulations on the purchase of your new home! Now that you have taken ownership of the property you will need to have your local services such as electricity, cable, and phone set up. You should already be aware of the expenses that are typically associated with owning a home. Neighborhood Association fees, landscaping costs, and annual taxes should be budgeted for throughout the year to keep from getting into a financial bind.
I can save you time and money by helping you coordinate the set-up of these local services. No doubt I already know who the local vendors are for such services as water and electricity, as well as others, so I can help provide you with a list of contacts.
More Information Contact Avi Dhaliwal 416-882-1200
Congratulations on your decision to purchase a new home. Your first step toward buying your new home will be to analyze your needs. By analyzing your needs you will be able to get a clear picture of exactly what you want your new home to look like and how it should function for you.
First, you should write down why you are looking for a new home. For example, are you currently renting and would like to have a home where you can begin building equity? Maybe you recently married and have outgrown your current residence. Or, maybe you have just gotten a promotion which requires you to move to a new city. These factors will all have a bearing on how you approach your home search.
Second, establish a time frame that you would like to stay within for buying your home. Depending on your reasons for wanting a new home and the current state of the market in the area you are looking to buy, you should be able to come up with a rough guideline which you can finalize at a later time.
Last, you most likely have a mental picture of what you would like your house to look like and what features it should have. It's very important to write these ideas down to avoid any ambiguity later in your home search. You should make at least two lists: one should be a list describing your dream home and the other should list the features of the home that are an absolute must have in order to buy it. In a perfect world, your new home would fulfill both lists 100 percent. It is more likely that you will end up blending the two lists into a schedule of prioritized items as you progress through the buying process. This is a natural and evolutionary process as you get clearer about what you want and what is available.
I can save you time and money by putting my expertise to work for you. I will be able to help you organize your wants and needs and then assist you in realizing how your wants and needs will fit into your home purchase plan. I will be able to helpfully focus your energies into what is possible for you and your family.
STEP TWO
Now that you have your list of features you want in your new home, you are ready to start looking! Well, not just yet. You are going to need to know in what price range to look. There are two ways to go about this. You can get prequalified or preapproved for a mortgage. Either way you will need to contact a mortgage company. There are some key differences between prequalification and preapproval for a loan that you need to be aware of. Loan prequalification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the Internet. The prequalified amount is based solely on the information you provide. In most markets, prequalified buyers usually hold little clout compared to preapproved buyers due to the fact that the information given during the prequalification process is not thoroughly investigated and therefore may be unreliable. Where a preapproved buyer is actually approved for a loan of a certain amount, a prequalified buyer is only told that they might be approved for a certain amount.
Preapproval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being preapproved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You can see how being preapproved would be more attractive to a seller than just being prequalified. The type of mortgage you apply for will depend on many factors, but the majority of that decision will be based on your ability to pay a monthly installment. If you can only afford a $1000 dollar a month payment, you are not going to go out and buy a $500,000 home, unless you have a large sum of money set aside to make a sizable down payment! Financial planners say that you shouldn't pay more than 32% of your gross income for housing (that includes principal, interest, taxes). Depending on your debt to income ratio, that percentage may change. Once you have determined what you can afford, the next step is to choose a mortgage plan. There are many different mortgages out there, so take some time and explore all of the possible plans for which you qualify. You could save yourself thousands of dollars in the long run!
I can save you time and money by being your professional guide through the entire loan process. They will be able to counsel you on the advantages and disadvantages of certain types of loans and help you understand the "real" cost of a mortgage. I will also act as your personal advocate and liaison between you and the lender as you proceed through the approval process and closing by working with your lender on a regular basis.
STEP THREE
Now that you have your list of needs and wants and you know how much you can afford to spend, it's time to look at some houses! Well, not just yet. Step back for a moment and consider the larger picture. People don't just buy a house; they buy the neighborhood the house is in. Think about that...if you found the perfect house but it was in a neighborhood that was not to your liking, would you make an offer on it? Most likely the answer would be, "No." So, you will need to make another list of what type of neighborhood you want to live in. You will most likely want to consider things like how living in the neighborhood will effect your drive time to and from work, what amenities are offered (swimming pool, tennis courts, park, etc.), and, if you have children who are attending school or soon will be, what school district you will be in and how close the schools are. You may even want to make two lists just like you did with your home criteria.
I can save you time and money by taking the information from your list of needs and wants for your home, your preapproval, and your list of needs and wants for the neighborhood and incorporating them into a broad search profile which will then be narrowed down to specific areas dictated by the market in which you will be looking. My experience in the local market will be an invaluable resource during this step.
STEP FOUR
At this point you will have a good idea of what you can afford and what type of neighborhood you will want to live in. Taking that information into consideration you are ready to embark on your actual home search. If you don't know much about the city that you are moving to you will most likely want to start your search by finding neighborhoods that meet your criteria and then narrowing your search to particular homes in the area. There are a few ways to go about doing this. You can access local publications highlighting available real estate in the area, you can contact local Neighborhood Associations, visit the local Chamber of Commerce, look on the Internet, and you can even drive through neighborhoods that you feel would meet your needs. Driving around a particular area looking for a home that is for sale is good because you can actually see the house, but it can be very time consuming and very "hit or miss."
I can save you time and money by keeping up-to-date on available properties that possibly meet your criteria and I will screen these properties for you. You can eliminate the haphazard searching through papers and the Internet and let the listings come to you through me. Then, when you find one that you like, I can arrange for you to walk through the property when it is convenient for you.
STEP FIVE
Now that you have found the home you would like to purchase, it's time to make an offer. Taking into account the recent sales of homes in that neighborhood which are similar in size, quality, conveniences, and amenities, what are you willing to pay for the home? Make sure that you have everything down in written form... no verbal agreements. Present the seller with a written document detailing what needs to be done by both parties to execute the transaction. The contract should protect the best interests of all parties involved and should be comprehensive in nature. Once it is accepted by the seller, it may be too late to make any changes, so make sure review your offer thoroughly before submitting it. The contract, though not limited to this list, should include the following: A legal description of the property The offering price The down payment Financing arrangements A list of fees and who will pay them Amount of the deposit Inspection rights and possible repair allowances The method of conveying the title and who will handle the closing A list of appliances and furnishings which will stay with the home The settlement date Any relevant contingencies. Remember that the legalities of this phase are very important. If you have any questions or concerns, they need to be addressed right away. After all, no one has ever said at their closing, "I wish I had asked fewer questions."
I can save you time and money by making sure that your contract meets all the legal requirements according to local and national guidelines. I will be able to expertly advise you on how to create an offer that will have the best chance of being accepted. Also, I will ensure your financial position as the buyer by including any necessary contingencies which would protect you if a particular requirement is not met.
STEP SIX
Once your offer is made there may need to be some negotiating in order to reach an agreement. Keep in mind that almost everything is negotiable when you are buying a house. This can give you a great deal of leverage in the buying process, that is, if you have adequate information and you use it in an appropriate manner. Some of the things that you may have to negotiate on are:
The price Financing Closing costs Repairs that need to be done Appliances and fixtures Landscaping Painting Occupancy time frame. The key to successful negotiating is keeping in mind that the end result must make both you, the buyer, and the seller happy. Otherwise, negative feelings will persist throughout the remainder of the process and someone may walk away feeling that they were not treated fairly.
I can save you time and money by representing your best interests and negotiating on your behalf. I have the knowledge and expertise necessary to make sure that your offer is accepted at the best price and terms possible for you.
STEP SEVEN
After your offer has been accepted, the property will need a thorough examination. Working with your lender, you may need to have a formal appraisal and a survey done for the property designated in the contract. A property inspection, a foundation inspection, and an environmental inspection may also need to be completed to make sure that the property is up to the standards set forth in your written agreement. If there are issues or inconsistencies brought to light during this time, it may delay or even nullify the contract depending on the contingencies set forth in the contract. Having these procedures done in a timely and professional manner is a must. Investigate each vendor to make sure that they are reputable and have a clean operational history.
Homeowner insurance is another very important item that will need to be taken care of at this point. Insurance experts recommend that you obtain insurance equal to the full replacement value of the home. Unless you have insurance coverage on the home, the closing can not proceed.
I can save you time and money by supervising the coordination of all necessary vendors and serving as your advocate when working with each vendor. I will make sure that the vendors have access to the property at the appropriate times to perform their procedures and oversee the execution of those procedures on your behalf. My experience in this area will be invaluable in making sure that everything is completed on time and in a professional and legal manner.
STEP EIGHT
As the closing date draws near you will need to be in contact with the moving company or closing lawyer and your lender to make sure that all the necessary documents are being prepared. You will also need to confirm that the documents will be delivered to the correct location so they can be reviewed and that they will be ready on the appropriate date. At this point, you should find out what form of payment you will need to bring to the closing for any unpaid fees. Make sure that your payment is made out to the appropriate party.
I can save you time and money by coordinating the necessary documentation with your closing lawyer. I can work with the closing lawyer as your consultant to insure thoroughness, accuracy, and timeliness. Making sure that each document is ready and available will enable you to have a quick, easy closing.
STEP NINE
Closing is where ownership of the home is legally transferred from the seller to the buyer. It is a formal meeting in which most parties involved in the buying/selling process will attend. Closing procedures are usually held at the lawyer's office. Your closing officer coordinates the document signing and the collection and disbursement of funds. In order for the closing to go smoothly, each party involved should bring the necessary documentation and be prepared to pay any related fees (closing costs). There may be more than one form of acceptable payment for your closing costs so ask the closing lawyer which form of payment will be required and to whom it should be paid. Sellers sometimes pay for a portion or all of the closing costs, depending on local market conditions, terms of thepurchase contract, and the seller's cash and timing considerations. Any such concessions should be acknowledged in writing. Most lenders will allow a credit from the seller to the buyer for the non-recurring closing costs. However, they usually won't allow a credit that reduces the amount of the buyer's down payment or any of the buyer's recurring costs, such as expenses for fire insurance premiums, Private Mortgage Insurance, or property taxes.
I can save you time and money by being present at the closing reading the documents on your behalf and answering any questions or helping to resolve any issues that may come up. I will also be available to manage any last minute or unexpected details that come up.
STEP TEN
Congratulations on the purchase of your new home! Now that you have taken ownership of the property you will need to have your local services such as electricity, cable, and phone set up. You should already be aware of the expenses that are typically associated with owning a home. Neighborhood Association fees, landscaping costs, and annual taxes should be budgeted for throughout the year to keep from getting into a financial bind.
I can save you time and money by helping you coordinate the set-up of these local services. No doubt I already know who the local vendors are for such services as water and electricity, as well as others, so I can help provide you with a list of contacts.
More Information Contact Avi Dhaliwal 416-882-1200
Monday, May 10, 2010
A Record First Quarter House Sales
Grater Toronto Realtors reported 10430 sales through out MLS in March pushing total first quarter 2010 sale 22418. The average price for March transactions was $434696.00 and the average first quarter purchase price was $427948.00
Ottawa, April , 2010 - Members of the Ottawa Real Estate Board sold 1,499 residential properties in March through the Board’s Multiple Listing Service system compared with 1,161 in March 2009, an increase of 29.1%.
Of those sales, 327 were in the condominium property class, while 1,172 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.
The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $329,767, an increase of 15% over March 2009. The average sale price for a condominium-class property was $240,409, an increase of 15.1% over March 2009.
The average sale price of a residential-class property was $354,698, an increase of 15.1% over March 2009. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.
Want to Know Online, How Much Your House Worth? Search Properties
More Information Contact Avi Dhaliwal 416-882-1200
Ottawa, April , 2010 - Members of the Ottawa Real Estate Board sold 1,499 residential properties in March through the Board’s Multiple Listing Service system compared with 1,161 in March 2009, an increase of 29.1%.
Of those sales, 327 were in the condominium property class, while 1,172 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.
The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $329,767, an increase of 15% over March 2009. The average sale price for a condominium-class property was $240,409, an increase of 15.1% over March 2009.
The average sale price of a residential-class property was $354,698, an increase of 15.1% over March 2009. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.
Want to Know Online, How Much Your House Worth? Search Properties
More Information Contact Avi Dhaliwal 416-882-1200
Tuesday, January 19, 2010
December 2009 Resale Housing Market
Greater Toronto REALTORS® reported 87,308 MLS® transactions in 2009 - a 17 per cent increase over 2008. This result included 5,541 sales in December. The 2009 result was in line with the healthy levels of sales experienced between 2004 and 2006, but lower than the record of 93,193 set in 2007."After a slow start to the year, existing home sales rebounded during the second half of 2009," said TREB President Tom Lebour. "As consumer confidence improved, many households moved to take advantage of affordable home ownership opportunities in the GTA. The strong residential real estate sector was a key contributor to overall economic recovery in Canada."The average home price in 2009 climbed four per cent to $395,460. The average price for December transactions was $411,931."Market conditions became very tight in the latter half of 2009. Sales climbed strongly relative to the number of homes listed for sale, resulting in robust price growth that more than offset average price declines in the winter,". "A greater supply of listings in 2010 will see home prices grow at a sustainable pace." Summary Of December Sales And Average Price
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December 2009 2008
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Sales Average Price Sales Average Price
City of Toronto ("416") 2,403 $441,607 1,105 $387,482
Rest of GTA ("905") 3,138 $389,205 1,472 $341,847
GTA 5,541 $411,931 2,577 $361,415
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Want to Know Online, How Much Your House Worth? Search Properties
More Information Contact Avi Dhaliwal 416-882-1200
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December 2009 2008
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Sales Average Price Sales Average Price
City of Toronto ("416") 2,403 $441,607 1,105 $387,482
Rest of GTA ("905") 3,138 $389,205 1,472 $341,847
GTA 5,541 $411,931 2,577 $361,415
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Want to Know Online, How Much Your House Worth? Search Properties
More Information Contact Avi Dhaliwal 416-882-1200
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