Residential Real Estate News - May 7 to May 14, 2009
By %--RENX Administrator--%>RENX Administrator The Real Estate News Exchange (RENX) 2009-05-14
^ Top Stories
Building wealth as rates fall down - When interest rates are low – particularly now with the Bank of Canada benchmark rate pegged at an historic low of .25 basis points – many think they should refinance their mortgage. This isn't surprising, since a home is the largest purchase most people ever make, with borrowed money in most cases. This may or may not be a good strategy.
Canada Mortgage Rates Not Likely to Fall - Mortgage rates in Canada, which have plunged by almost 50 percent in the last year, aren’t likely to fall further, said Phil Soper, chief executive officer of Brookfield Real Estate Services Fund. ates for home loans have been dropping during the biggest financial crisis since the Great Depression, with some lenders offering mortgages approaching 4 percent.
HST threatens 21,000 housing jobs, report says - Last week I highlighted the 2009 economic impact forecast for the new home building and renovation sectors in the GTA noting the $14.4 billion in investment, 141,400 person-years of employment (jobs), $7 billion in wages paid and $3.3 billion in taxes paid. At the end of that column I expressed concern that based on current new home sales trends, these economic impact numbers could be halved for 2010.
New home prices edge lower; biggest drop in west - Prices for new homes fell 0.5 per cent in March from a month earlier, with the biggest dips in Calgary, Edmonton, Vancouver and Victoria, says Statistics Canada. The decline was the sixth month-over-month drop in a row, and was exactly as analysts had been projecting, and comes on the heels of a 0.7 per cent drop in February.
Real estate experts see silver lining - There's lots of bad news and more job losses in store, but a recent real estate panel organized by Bank of Montreal in Toronto had positive things to say about the housing market in Toronto and elsewhere. Broker Brad Lamb, one of four experts, identifies December – the month his office phones stopped ringing – as the Toronto market bottom.
Remodeling for rookies - First-time home buyers made up more than 40 percent of all buyers at the end of 2008, up from 36 percent in 2006—when boomburgs and boomburbs were, well, booming. If you're a recent first-time home buyer, you know what it's like to sign the roughly 439 closing-related documents, pay your lawyer and others who get a piece of the action, and put the key in the front door for the first time.
Big spike in number of homes lost in GTA - When Victor Sebestyen bought his three-acre estate in Caledon, it was a statement that the humble plumber had finally arrived. But as the economy and real estate market started to head south, so did Sebestyen's business. He was forced to declare bankruptcy last October. His dream home is now listed for $750,000 under power of sale by the Royal Bank of Canada.
Quebec buyers, sellers spent 34 per cent more on their homes in 2006 to 2008 - The economic impact of expenditures in Quebec related to the residential real estate market grew from $1.8 billion between 2004 and 2006 to $2.8 billion between 2006 and 2008, according to a study commissioned by the Quebec Federation of Real Estate Boards. The study shows that between 2006 and 2008, households spent an average of $34,525 on secondary expenses when buying or selling a property.
Tax credit not enough, says Calgary roofer offering incentives - Contractors in Calgary are offering discounts to encourage renovations because a federal government rebate doesn't offer enough incentive, according to one roofer. Jim Bishop, owner of Epic Roofing, said most companies these days are offering 10 to 15 per cent off on top of the rebate program in order to sweeten the deal in an industry that has seen a drastic drop in demand.
Stepping stones to affordable home ownership - Every day Mary Clelland walks by the northeast corner of Dundas and Parliament Sts., and as she does, her anticipation builds. She is counting the days until she moves in later this year. But thanks to low-interest rates and one of the programs offered by the Daniels Corp. for first-time buyers, she intends to fulfill her home ownership dream when sales open at One Cole in June.
^ Market Conditions
Home sales jump in April, CREA says - Home sales picked up in April for the third month in a row, but the real estate market has not yet made up for all the lost momentum of the past year, the Canadian Real Estate Association said. Sales of homes in Canada, seasonally adjusted, jumped 11.2 per cent in April compared to March, the largest month-to-month increase in more than five years, CREA said.
Housing starts decline in April - The number of Canadian housing starts fell to 117,400 in April from 146,500 the previous month, Canada Mortgage and Housing Corporation reported Friday. Most analysts had expected 140,000 housing starts in April. Urban starts declined 24 per cent to 96,800 units in April, on a seasonally adjusted basis. The sector saw multiple-unit starts fall 32.7 per cent to 54,700 units.
Fear not, condo lovers - According to this week's report from TD Economics, the Toronto condo market "is in the midst of a cyclical downturn rather than a drawn-out structural downturn." There is no denying Toronto has suffered job losses. But while employment in the rest of Ontario has fallen 4% since November, 2008, in Toronto, according to TD Economics, the contraction for the same period was just 0.7%.
U.S. Median House Price Declines 14% - The median price for a single-family house fell 14% to $169,000 in the first quarter from a year earlier, the National Association of Realtors reported. The trade group said first-time home buyers accounted for half of all purchases in the quarter, and many of them zeroed in on foreclosed homes. That dragged down the median, the Realtors said.
^ Mortgage and Financing
Rates on 30-year U.S. mortgages up slightly - Rates on 30-year fixed mortgages rose slightly for the second straight week, but still remained below 5 percent, Freddie Mac said Thursday. The average rate for a 30-year fixed mortgage was 4.86 percent, up from 4.84 percent last week. Rates have been below 5 percent for nine straight weeks. Last year at this time, the average rate for a 30-year fixed mortgage was 6.01 percent.
^ Renovation, Repair and Maintenance
Simple home staging steps can up a home's appeal - It's a question all homeowners face when they decide to sell: How can you make your home as appealing to potential buyers as possible? In today's market, that question has become even more crucial. "It really depends how much your home is worth," says New York-based interior designer Janine Carendi. "Is it in move-in condition, and will buyers expect it to be?"
Higher roofing costs hit U.S. homeowners, tied to price of asphalt - Those who find themselves needing new shingles this roofing season may be surprised to find prices rising even though petroleum costs less than it did last summer. The price of asphalt shingles rose 57.5 per cent from March 2008 to this past March, according to the U.S. federal Bureau of Labor Statistics' Producer Price Index.
Homeowners Cut Back on Renovations in Recession - Spending on home improvements continues to decline as rising unemployment and falling home prices dissuade consumers from investing in costly renovations. Homeowners spent $124.6 billion on property improvements (excluding maintenance) in the first three months of the year, down nearly 8 percent from the year-ago period, according to Harvard University's Joint Center for Housing Studies.
^ Taxes and Utilities
Take advantage of the Home Renovation Tax Credit this summer - Planning on getting your hands dirty with gardening and outdoor renovations this May long weekend? With summer just
around the corner, and the added incentive of the federal Home Renovation Tax Credit, many Canadians will be heading to their local home and garden centre this long weekend to get home improvement projects underway.
Green incentives proposed for Winnipeggers with older homes - The City of Winnipeg is hoping to give owners of older homes some big dollars to make energy-saving updates. A home renovation program approved Wednesday by the mayor's executive policy committee proposes to provide tax credits to people who renovate homes built more than 25 years ago and assessed below $144,000.
The foundation for designating principal residence - It's no secret to most Canadians that the sale of a principal residence is generally a tax-free sale, thanks to the principal residence exemption. The fact is, since 1982, each family unit has been able to designate just one property as its principal residence for each year. So, if your family unit owns more than one property, there will likely be some tax to pay on the sale of one of those properties.
^ Construction
Ritz tower edging skyward - Soon, Toronto can say it's putting on the Ritz. The Residences of the Ritz-Carlton, the first in a series of upscale condo/hotels being built in the city core, is starting to reach for the sky, with 24 of the 52 storeys being completed. And, we can tell you, the view from the 24th floor is quite spectacular, as I discovered during a "hard hat" tour of the five-star facility at Wellington and Simcoe Sts.
^ Cities, Towns and Urban Issues
Ottawa city councillors line up against sprawl - Ottawa council could avoid a series of fights at the Ontario Municipal Board by holding the line on its urban boundary, according to its top planning lawyer. Tim Marc says changes to the provincial Planning Act since 2003 have strengthened the city’s hand in controlling development. If any urban expansion in the official plan is permitted, the revised plan can be appealed to the provincial board.
^ Buying and Selling Advice
A buyers' market? Not in my experience - We sold our house in western downtown Toronto three weeks ago, with a June 30 closing. We have seven weeks left to find a house and move in, but every house we're interested in seeing is sold before we can say "book us a showing." We've been on mls.ca for hours every day, we've been driving unfamiliar neighbourhoods every day, we've been at open houses.
Toronto condo prices: best bang for your buck - As uncertain economic conditions persist here and around the globe, many Canadians are wondering if luxury condominiums are still a good investment. The answer from many industry experts is a resounding "yes." According to RealNet Canada, sales of new condos in the GTA in 2008 exceeded 15,500 units while CMHC reports that construction was started on nearly 24,000 units last year.
Introducing Realosophy the Brokerage - Realosophy is now a full service brokerage serving buyers and sellers in Toronto. We wanted more information at our fingertips and some straight talk about the whole home buying process. With the words “open”, “easy to use” and “empowering” posted on our wall and our butts firmed planted at our kitchen table, we built realosophy.com.
Cottage deals need special expertise - Last month I reviewed an offer to purchase a waterfront cottage near Kirkfield, Ont. The property was listed by a real estate agent in the Kawarthas and the offer was prepared by a Toronto agent. After I read the offer, I told the would-be purchaser that it was one of the worst cottage-area offers I'd ever read.
^ Other
Six townhouse owners win lawsuit over Ucluelet development - Six people who bought townhouses in Ucluelet have won their court case after they sued the developer for making a claim that units could be rented out as short-term vacation rentals. After the Primera development was completed in 2005, short-term rentals were not allowed. Six owners sued the developers seeking damages for breach of the Real Estate Development Act.
The cottage alternative - They weren't raised in a barn but Garry and Nancy Watson feel quite at home in one most weekends and throughout the summer. Then again, the Watsons' converted barn in Loretto, Ont. has come a long way from its modest beginnings. Royal LePage Recreational Property Report contributor Pauline Aunger says rural refuges make sense for many people.
Toronto Star, May 11, 2009
Nurido.at, May 14, 2009
Toronto Star, May 09, 2009
Globe and Mail, May 11, 2009 CBC News, May 11, 2009 Financial Post, May 11, 2009 Ottawa Citizen, May 11, 2009
Toronto Star, May 09, 2009
CTV, May 14, 2009
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Toronto Star, May 09, 2009
CTV, May 14, 2009
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Wall Street Journal, May 13, 2009
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Toronto Star, May 08, 2009
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CNW, May 11, 2009
CBC News, May 14, 2009
Globe and Mail, May 14, 2009
Toronto Star, May 09, 2009
Ottawa Citizen, May 12, 2009
National Post, May 11, 2009
Financial Post, May 08, 2009
Move Smartly, May 13, 2009
Toronto Star, May 09, 2009
Vancouver Sun, May 14, 2009
Globe and Mail, May 08, 2009
Added: Thu May 14 2009