Tight supply continues to frustrate buyers (and agents)

If you are a buyer, you know that the Toronto real estate market is a tough one these days.  There are so few listings on the market that almost everything is selling in competition – and some of the sale prices are leaving you scratching your head.  Of course, it has been like that for most of the 8 years that I have been a Realtor, with the one minor exception of late ‘08 through mid’09.  It’s just harder than ever now.

What to do?  Well, for one thing, be ready.  You know it’s a crazy market, so get your financing lined up  (call us if you need any help with that) – today!  Rates are going to rise later in the year, so lock in a good rate now (you should be able to get the rate guaranteed for 3 months). 

Also, get out there and see new listings ASAP.  Don’t wait for the weekend open house – it will be a madhouse.  Plus, if offers are set for the following Monday or Tuesday, you may not have enough time to get yourself fully ready to go for it.  Call us to book a week-day showing, and plan to attend the open house for a second or third look.

There may be a pre-listing home inspection to review at the house.  Those are helpful in a very general sense, but if you need the assurance of your own home inspection we need a day or two to arrange that – which is another reason to get out there to see houses as soon as possible.  You may spend $500 on a home inspection and still lose in competition, but that’s better than buying a house before doing an inspection – and finding a major problem after you move in.  Always plan to do a home inspection.

Recently, I have been calling owners on streets of interest to my clients; I have also made direct calls to a few specific homes on behalf of clients.  It’s all is a day’s work here at Team DeClute!    In this market, you need your Realtor working extra hard for you.  If you are just about to get into the market, make sure that the agent you hire is ready to go the extra mile; if you’re not getting the service you need, maybe we can help – give us a call! – Simon

Holy cow – RE/MAX Hallmark Realty Ltd. expands to Muskoka!

This just in (via press release from RE/MAX Ontario-Atlantic)! 

“RE/MAX Hallmark has opened its doors in Port Carling to cross-service recreational and residential real estate clientele in both Greater Toronto and the Muskoka region.

 “Whether upsizing, downsizing, purchasing a family retreat or fulfilling retirement dreams, RE/MAX Hallmark now offers its clientele the best of both worlds,” says Debra Bain, Broker-Owner, RE/MAX Hallmark.  “The new office will allow us to build on current client relationships, establish a stake in a high-demand marketplace, and increase our marketshare in both areas.  Moreover, it will give our customers the flexibility to remain with a franchise they know and trust—and that’s quite a significant advantage.”

RE/MAX Hallmark will operate out of the former location of RE/MAX Muskoka Realty at 113 Medora St., Unit 1 in Port Carling.  The 14 veteran RE/MAX Muskoka agents—consummate professionals with strong ties to the community—will remain with the Hallmark team. 

 “Our focus going forward will be to expand our sales force at the Port Carling office, and thereby expand our reach throughout Muskoka,” says Bain.  “We’re making an investment where our clients want to be.  We’re essentially moving with them.”

The new facility brings the number of RE/MAX Hallmark offices to eight and the total number of sales associates to more than 500, making the company the largest in the RE/MAX Ontario-Atlantic Canada franchise network.

Celebrating their 29^th year with RE/MAX, the RE/MAX Hallmark team specializes in residential, recreational and commercial real estate.  RE/MAX Hallmark helps thousands of individuals, families and businesses each year with their real estate needs.   RE/MAX Hallmark is firmly entrenched in the communities it serves.  It is a leading contributor to Children’s Miracle Network in Canada through the RE/MAX Miracle Home Program and grassroots fundraising initiatives.  RE/MAX Hallmark is also a leader in in-house training and is a member of RE/MAX International’s Chairman’s Leadership Advisory Board—an association of 75 of the leading RE/MAX broker-owners worldwide. ” 

Wow.  We’re expanding like the Borg!  Hmmm… maybe I can do some real estate business whilst visiting the in-laws next summer.  I like the sound of that!    In all seriousness, being able to take care of your recreational property buying and selling through your home brokerage will make things a lot simpler for you. 

RE/MAX Hallmark strives to provide great services to all of our clients.  Our expansion to Muskoka may not be of practical use to all of our clients, but I do hope that it shows you that we are a full service brokerage that covers all types, sizes and price ranges – including receational properties. 

So, now you know: if you plan to buy or sell in the Muskoka region (or elsewhere) this year please do call and we’ll get you started! -SM

Heated housing activity throughout 2009 lends little air to bubble theory in the GTA

Heated housing activity throughout 2009 lends little air to bubble theory in the GTA

Despite limited inventory levels in the Greater Toronto Area (GTA) in the latter half of the year, double-digit price appreciation failed to materialize in the single-detached housing category in 2009, says RE/MAX Ontario-Atlantic Canada.

Jan. 28, 2010 Single-detached housing values remain slightly off peak 2008 levels in 27 per cent of TREB districts Mississauga, ON (January 28, 2010) – Despite limited inventory levels in the Greater Toronto Area (GTA) in the latter half of the year, double-digit price appreciation failed to materialize in the single-detached housing category in 2009, says RE/MAX Ontario-Atlantic Canada. In fact, an in-depth analysis by RE/MAX of 63 districts within the Toronto Real Estate Board found that detached housing values in 27 per cent of districts remained slightly off 2008 levels, while 57 per cent reported price appreciation of less than five per cent in 2009. Sixteen per cent of districts recorded an increase in average price in excess of five per cent. No double-digit gains were noted.  “There is simply no evidence of a housing bubble,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada.  “While sales were up considerably over one year ago—and supply was tight in many of the city’s hot pocket areas—the expected surge in average price did not occur.  Buyers remained cautious in their pursuit of homeownership—with most unwilling to overpay for the privilege. “  While one quarter of all TREB districts saw prices in the detached housing category soften in 2009, just over half declined by less than two per cent.  Those that saw prices fall by more than two per cent were primarily upper-end neighbourhoods—the vast majority located in the central core—which were slower to rebound once the market regained momentum.  By year-end, however, sales in all of these areas posted double-digit growth—a fact that clearly indicates a greater number of transactions at the lower end of the price spectrum.  Inventory may have also played a role as sellers held off listing their luxury properties until market conditions improved. Leading the GTA in terms of price appreciation was South Pickering (E12) where the average has risen 9.4 per cent to $358,493; Malvern, Hillside, Rouge (E11) takes second place with a 7.3 per cent upswing to $368,095; North Pickering (E13) was ranked third with values climbing 7.2 per cent to $396,973; fourth spot goes to Port Credit (W12) in Mississauga where values have climbed seven per cent to $614,144; and rounding out the top five — the lone downtown Toronto district –was Riverdale, Leslieville (E01) where prices escalated 6.7 per cent to $522,017.  Ballantrae, Cedar Valley (N13) ranked sixth with a reported 6.4 per cent increase to $662,268.  In seventh place is Richmond Hill – North End (N05) with a 6.3 per cent increase in average price to $574,642.  The Applewood, Rathwood neigbhourhoods (W14) in Mississauga ranked eighth in terms of price appreciation, rising 6.1 per cent to $505,994, while Markham (N10) claimed ninth spot with a 5.3 per cent escalation in detached housing values, bringing the average to $510,268.  Bathurst Manor, Armour Heights (C06) in the city’s north end secured tenth place with a 5.1 per cent upswing in average price to $597,025. The East clearly dominated the top five and affordability factored in heavily, with single-detached homes in both Pickering districts and Malvern, Hillside, Rouge, priced under $400,000. Young families – most buying their first home — were attracted to communities like Riverdale and up-and-coming Leslieville, while move-up buyers looked to Port Credit, which has steadily increased in popularity in recent years. “First-time buyers were a driving force throughout much of the year, but their role was most noticeable in early 2009,” says Polzler.  “Almost one in every two homes sold was priced under $400,000 in the first quarter of the year.  An entirely different picture emerged in the final quarter when just one-third of homes moved under the $400,000 price point.” As the move-up segment swelled, so too did demand for more upscale properties across the board.  Yet, despite the upswing, average price registered only a small percentage increase.  In the central core, for example, where the average price ranges from $572,529 in Don Mills to as high as $1,717,190 in Rosedale, overall values rose one per cent to $919,838, compared to 2008.  Unit sales in C-district jumped 31 per cent to close to 4,000 units. The number of homes sold in the city’s north end saw the greatest percentage increase at 32 per cent to 8,843 units.  Average price in North district, which ranges from $398,864 in Newmarket to $700,499 in King City, rose two per cent overall to $555,616.  Housing sales climbed in the west, where values range from $298,136 in Brampton to $790,060 in the Kingsway, by close to 19 per cent to 12,453 units.  West district’s average price rose a nominal 1.5 per cent to $467,227.  The increase in sales was more moderate in the East End (including Scarborough and Pickering, Ajax), where values range from $325,393 in Bendale, Woburn to $691,128 in the Beach.  The number of detached homes sold increased 15 per cent year over year to 6,690.  Average price in East Toronto rose 2.6 per cent overall to $400,813.  “After a dismal start, the stats confirm that 2009 returned to the healthy, upward trajectory that we have followed for much of the last decade,” says Polzler.  “We see detached homes continuing on that course in 2010, with moderate gains expected.  The detached housing category continues to be a solid gauge of the market’s overall performance, accounting for approximately half of the activity in GTA.”  RE/MAX is Canada’s leading real estate organization with over 17,000 sales associates situated throughout its more than 677 independently-owned and operated offices across the country.  The RE/MAX franchise network, now in its 36th year, is a global real estate system operating in more than 70 countries.  Over 6,700 independently-owned offices engage nearly 100,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, and asset management.  For more information, visit: www.remax.ca. ###

Inspiration: Rough and Ready

My friend GG just sent me these photos, she often sends me amazing images that she finds to inspire me, and for that I am truly grateful

I love the look of these super rough walls. Do you think they just peeled away the wallpaper and left them, or perhaps recently patched them up, or tore away a facade, or what? Sometimes an interior that keeps you guessing with its imperfections is the most fun to hang out in.

This one is a step above with simple but effective styling: pared down mid-century furniture, bold artwork, and overall rustic architecture. I just love it.

-EN

So, how did my January 2009 ‘predictions’ pan out?

Regular readers will know that I can rarely resist a chance to say “I told you so” – when it comes to real estate, that is.  (I at least *try* not to do it otherwise!)  Well, here I go again.  I had a conversation with a client yesterday that touched on ‘bully offers’, so I went digging through some earlier newsletters and blog postings in search of my previous comments about that topic (which I will post here soon, I promise).  Lo and behold, I found this from January 2009: 

“ I’m sure that you are just dying to know what we think will happen in the Toronto Real Estate Market in 2009… right?  Well, this year real estate is going to be great – better than last year, I can almost guarantee it!  The financial markets are perking up a bit (the TSX is back above 9000), and the recent shopping season blew the socks off all the negative talking heads on TV. It seems that the average citizen disagrees with the ‘experts’!  As soon as the media stops boring us with all of their doom and gloom, watch for the Toronto real estate market to pick up again.  If you are a buyer, don’t wait! Now is a great time to invest in the Toronto market – especially if you are a ‘move up’ buyer. You will take a bit of a hit on the house you sell, but you will make up more on the house that you buy.

Just remember this: once the market turns, it will bounce fast, so don’t sit on your hands for too long.  Most industry experts (also known as Realtors) believe that we will stay in a balanced market for the time being. Balanced is good, but I’m not so sure that it will stay that nice for long. I’m expecting that, once buyers see other buyers step in, the rush will be back on.  You heard it here first. ”

So, how did my prediction pan out?  Well, as previously reported, the Toronto real estate market really did start picking up in Spring 2009, and by the end of the year we saw 87,308 sales (over 74,552 in 2008) and an average sale price of 395,460 (over 379,347 in 2008).  I rest my case!  In fact, the “bounce” has been so strong that it has become a bit of a battle to get buyers into houses due to increasing competition.

The moral of the story is that your best source for real estate market info is your Realtor – i.e. Team DeClute.  (Obviously, I wouldn’t stake any claim on the merits of the competition!)  We are *in* the market every day, talking to buyers and sellers and getting a real feel for what’s what.  The self-proclaimed experts on TV may not have spoken to an actual buyer or seller as part of their analysis (if ever).  They’re basing their opinions on numbers and charts – and I’ll let you guess at my faith in their ‘gut instincts’, which seasoned Realtors depend upon while navigating the ins and outs of the market.

So, in conclusion: A) we know real estate; B) talking heads on TV don’t; and C) we have earned the trust of our clients over the years because we know our business and do our best to provide our clients with great service.  Our understanding of the market is the number one benefit that you, the client, get from us. 

Maybe you can ‘find’ a house for yourself; maybe your friend, neighbour, uncle or somebody else will find it.  But you can’t expect anybody other than a professional Realtor to know the market.  I don’t say that as a Know-it-all, but as somebody who wants to provide you with the kind of service that you need.  We don’t guarantee perfection – nobody can do that.  Sometimes unexpected things happen in the real estate world, and I have been surprised at events/outcomes more than once.  However, we do promise to bring our knowledge, experience, best efforts and intentions to the table.  Call us today and let’s get started!

Our Reno: Dare I say it’s Done?

Well, it’s been a long time… since I’ve blogged, since I’ve had zero workmen zipping in and out of the house all day long, since I’ve wiped up inches of drywall dust from my countertops, since I’ve grabbed the baby before he grabbed a powertool, and since I’ve had my house back in one piece. And guess what — it was SO worth it.

After 6 long months and plenty of hiccups along the way, this new room we have built has made an incredible difference to…well…not only the structure of our home, but our lives. Our house now has dimension, new areas to go, fantastic spots to hang out and entertain. It has a WOW factor that I’ve been craving for years. Visually it adds warmth but also industrial coolness and (I think) style to the entire house.

Certainly we’ve increased the value of our home but more importantly our day to day living is much happier. It’s true – these cold wintery days I’m amazed at the gorgeous light that’s always streaming in through the windows and doors,  and we often just sit around looking out at the squirrels and birds bustling about; we almost always have music or the radio playing which I love, and the kids have easier access to the basement where most of their toys are stored.  Though not  formal or traditional, half the room is our ’dining room’  that houses a lovely old table (fashioned from an old harvest tabletop I found at a flea market, sitting atop a cool metal table from another vintage store) that can hold up to 8 people quite comfortably. (Before we could really only fit 4 adults and 2 kids). We also use the table for crafts and homework, cards and games, or just hanging out.

The bathroom is a real sweet spot for me. I know it sounds weird, but I totally love it. The French doors open up to a rustic salvaged wooden vanity (affectionately known as The Stump) with the sleek, angular raised sink (Wading Pool by Kohler) and the elegant gold faucet (Purist, also Kohler). A simple slab of carrera marble acts as our backsplash (a leftover from our kitchen counters) and an ornate gold mirror completes the vintage-modern-rustic look — all sparkled up with the bright blue chandelier that I’ve had for years. I still need to paint a wall chocolate brown, but that’ll be next week.

I don’t know, maybe I get too excited about all this stuff, but I can tell by the reactions of not only my family but also neighbours (the ones that still like us) and friends that have stopped in that we’ve done something right. But most importantly I feel like I did something right, and that’s not a feeling I can say I have every day with all the stresses of day to day life. So that, in itself, is somethin’.

-EN

Great Start for the 2010 Real Estate Market in Toronto!

Well hellooooo! It has been a while, hasn’t it? Emily took time to finish her reno and enjoy the results, and I spent some time painting, puttering and making a skating rink in my back yard! However, the New Year is well under way, and the real estate market is showing signs of life – strong signs!

As usual, I sold a house in December – while half the agents in TREB were slurping eggnog, yours truly kept working! My lucky client was one of 5541 transactions last month – more than double the number of transactions in December of 2008. However, while the number of sales doubled, the number of listings increased by only 5%. So, demand went up and supply stayed the same – that’s why prices are rising!

While nobody has a crystal ball, the general consensus is that we are in for a big year in the Toronto real estate market. Now that sellers have increased confidence in their ability to sell (quickly, at a good price, with good terms), we’re not seeing any hesitance to list due to market conditions.  We have plenty of listings that we are preparing for market over the coming weeks and months. Buyers are no longer worried about losing their jobs, or the direction of the economy (no doubt with some exceptions). The bottom line is that the mood is bright – and that’s a 180 degree turn from this time last year.

Interest rates are still a huge factor in this market.  They are going to stay low for the next six months or so, after which they will start to inch up. If you don’t have a mortgage pre-approval yet, go get it! (Call us if you need any help with that.) Bear in mind that there are many more buyers in the market now than there were last year, so the odds of competition are pretty high. Don’t let that deter you, however, as prices are expected to continue to rise for the foreseeable future, so the price you pay today (even in most competitive scenarios) will be less than you’ll pay later this year or next year.

Some prognosticators are suggesting that the first half of the year will be super hot and the second half will be slower, but I have a hard time believing that. I have so many buyers looking for homes, many of them with properties to sell, that I see things continuing well past mid-year. It has a lot to do with the pent up demand: it just won’t be satisfied in the next 2 quarters. I believe that we’re in for a return to solid, consistent growth in supply, sales and prices.

To stay on top of the market be sure to visit our blog frequently! If you want to tap in to the MLS listings call me and we’ll arrange a meeting to set that up. As always, feel free to call us at 416.699.9292 to discuss your real estate goals for 2010 and onwards. We will work with you to establish a plan to achieve those goals – and have some fun along the way! -SM

Our reno: Let it be done, please let it be done…

Closer. That’s what we are. But not done. And now, lemme tell you, I want this thing DONE already. We’ve been living in a reno for about 3 months now. And I’ve been patient, I’ve been a good sport, I’ve been a really nice person. But now I’m getting very very tired of this whole routine.  Yes, as we all feared the other, less patient side of me is screaming for this to be finished.

David has been here everyday for 10 hours finishing the plumbing, floor, drywall, etc and as I write this blog he’s sanding and preparing a prime coat of paint — he’s sort of my light at the end of the tunnel because when he’s here, shit gets done. The shot above is the opening from our dining room into our new room, there will be a step down.

And this (above) is our little powder room, plus stairs down to the basement. The powder room is ready for fixtures and tile, that is pretty exciting for me.

The window and door combo. No complaints there. Totally great.

And, because the whole story needs to include all the facts, this is what lies beyond the doors. Don’t you love it? So much mess. Can’t wait for the final dumpster. The final everything. Maybe the next blog. Please cross your fingers for me. -EN

Room of the Week: What’s Not to Love?

A little background: I recently sold a big old great house to a young family and we spent a lot of time together making the deal happen. During our many meetings I couldn’t resist some design talk with the wife. She happened to be a very stylish gal with equally stylish visions of the entire house,  particularly the third floor.  It was the ideal ‘blank slate’ to which great things are about to happen, notably incorporating an ensuite bathroom in what is now just a small bedroom off the master. I have to admit I was envious of the potential of this place, so much room and so much fun to be had. 

Anyway — I sent the wife over several inspiration shots of great bathrooms, and came across this one. It’s not at all what she is thinking of doing, but it is something I want to do someday. I am a bath person, and the idea of reading in the tub in front of a fire on a cold wintry night, then hopping right into a warm bed — well, it’s about as luxe as it gets for me. -EN

Harvest Homecoming fun at the Whole Child School

Three of my four kids attend the new, alternative Whole Child School, so it was with great pleasure that Team DeClute helped sponsor the first ever Harvest Homecoming fall festival at the school.  Although these events are often fundraisers for schools in support of classroom supplies, field trips and other fun stuff, this one was mostly about getting the new community together for a good time.  The weather was great – perfectly cool and damp, like a fall day should be!  Parent volunteers ran the barbeques and sold the treats (Starbucks coffee and hot chocolate, plus loads of neat homemade treats donated by the community), so we all had plenty of ways in which to stuff ourselves!  Hay bales, pumpkins, a clown show and live music (fiddle and guitar) made for a really festive and fun atmosphere. 

As with all such events, the credit goes to the parent and staff organizers and their volunteer workers – and to all of the attendees, who validated that hard work by having so much fun.   We at Team DeClute were honoured to play our small part, and look forward to contributing to (and attending!) many more such events over the years! – SM