September 18, 2009 · Leave a Comment

By Julian Merry

When you put your house on the market, you will come across two types of methods to showing your house.

The majority of the time you will be having showings of your house, where a specific real estate agent will call your real estate agent and ask whether his/ her clients can view your house. After your real estate agent gets approval from you, a date and time is set.

You can have anywhere from one to a dozen showings or more before you sell your house.

Now the second method of showing your house is an open house. An open house consists of you leaving your house on a specific date and time, leaving your real estate agent to wait for potential buyers to walk through the doors.

In many cases you will find buyers walking in with no real estate agent at all, they might have seen the advertisement for the open house and decided to drop by. When this occurs, one of two things can happen. They are either serious buyers and are genuinely serious in purchasing a home, maybe even yours or they were simply just a couple who were passing by and wanted to kill some time.

The latter tends to happen most often, however having a serious buyer show up happens frequently as well.

Some people might think an open house is a waste of time because potential buyers will examine homes on the internet and simply call the respective agent to book a showing. However that does not mean this method does not work. Making a personal appointment with an agent to visit a home might not interest them; it can put too much pressure on them to purchase a home.

Open houses give people a chance to browse through homes without any pressure.

Before you have an open house you have to keep in mind that it is similar to a showing, with the exception that it will span over a few hours.

Ensure that your home is clutter free; create more space in your room by clearing up your personal belonging you might not use as much.

Be sure to have your house looking immaculately by giving it a thorough clean.

A good tip is to have a fresh batch of cookies or any baked goods sitting in your kitchen. This will  give off a lovely aroma to visitors, thus adding a little to your home.

Open houses are sure to attract visitors who might not be interested in purchasing your home at all, however there will be a time when someone will harmlessly walk in the front door and fall in love with your place.

Julian Merry is a Broker with Royal LePage/Johnston & Daniel Division.  Julian is a regular contributor to the Muddy York Toronto Real Estate Blog.  Julian’s website is located at www.julianmerry.com.

October 9, 2009 · Leave a Comment

By Carson Dunlop & Associates

One of the great joys of living in Canada is the change of seasons. Autumn’s colors and crispness will soon be making way for winter’s exciting first snowfall. Of course, one of the great burdens of living in Canada is the extreme conditions we ask ourselves and our houses to live through.

That burden can be lighter for both you and your house with regular maintenance. As good cooking and great paint jobs can attest, success lies in the prep work. Now is the time to get moving to ready your house for a cold winter and a wet spring. Here are our suggestions for a simple pre-winter tune-up.

Tools You May Need:

• Ladder
• Paintbrush
• Shovel
• Vacuum
• Telephone
• Sharpened eyeball

Outside

The brunt of the weather abuse is borne by the roof and the exterior skin of the house.
Get a ladder, a pair of binoculars, or a trusted roofer, and check the roof. If you have a sloped roof, look for shingles that are cracked, curled, loose, damaged, or missing. Repair where needed. Pay attention to the junctions between the roof and chimneys, pipes, and walls, for example – the metal flashings often need re-securing or re-caulking. If you have a flat roof, clean off leaves and branches, and cut back overhanging tree limbs. On the roof membrane, look for bulges, worn spots, or split seams. Flashings are important here also.

While you are up there, you should have a look at the chimney, if there is one. Brick chimneys may have missing mortar or loose bricks, and should have a screen to keep animals out. Metal chimneys should be free from rust.

Eavestroughs and Downspouts

While at roof level, be sure to clean and re-secure the eavestroughs. We cannot overstate the importance of having free flowing and leak free gutters and downspouts on the overall health of the house, especially the basement. If your eavestroughs can’t control the rain or melting snow, the ground will get soaked. Soaked ground means much higher risk of a leaky basement. Keep your basement in mind while you are dangling from the edge of the roof!

Follow the downspouts to ground level to double check where they dump the water. Above ground spouts should be well connected at the elbow, and discharge at least six feet away from the nearest wall, or at a point where run-off will be carried away from the house. For any house older than about 40 years, downspouts draining below ground should be considered for disconnecting from the below grade pipe system, and extending to drain above ground. This is an easy and surprisingly effective basement leakage cure in many older houses.

Grading

Speaking of the basement again, take a tour around the house to check how the ground directs traffic. Any and all surfaces next to the walls should be sloped to shed water away. Bad grading is another common and preventable cause of basement leakage. This is exponentially more important on warm winter days – melting snow runs quickly across the surface of still frozen ground. If the grading is bad, it will flow right to the house, and possibly right into the basement. Now is the time to grab the shovel and re-slope the grass, or call a paving contractor or handy person to correct a negatively sloping driveway or walkway.

Windows

During the exterior walkabout, check the windows and doors for any wood in need of paint, and any joints that need re-caulking. Check also the caulking at pipes, vents, and other wall penetrations.

Inside

Inside the house, we are going to need heat. Lots of it.

Furnace

The most important pre-winter activity can be done by anybody no matter what their skill level, for usually low cost, in about 2 minutes: pick-up the phone, and schedule a heating system maintenance call. Even a new unit needs this check. The technician will clean the burners and fan, lubricate the moving parts, change the filter and check the operation of the important safety mechanisms. If the service is to be done later in the heating season, you can start on the right foot by replacing or cleaning the furnace air filter. If you have a humidifier you should clean it out as well.

Once we have heat, let’s do what we can to keep it in the house.

Weather Stripping

If you live in a new house, odds are good your windows and doors are well sealed. Old windows and doors, and even some newer ones, may need sealing to keep heat in and cold out. One approach would be to replace them. Luckily, great improvements can be made with simple weather stripping kits available at any hardware store. Due to the tremendous variation in shapes and sizes, we could write a novel about how to do this, but all you really need to do is to find the pre-packaged material that has a picture of your window or door, or something close to it, and follow the instructions.

Final Notes

The previous suggestions are the most important winter tune-up steps. Other good ideas include cleaning the heating grates, especially on the big cold air returns, cleaning and lubricating exhaust fans, and cleaning out the dryer vent and cover. If you have electric baseboard heaters, vacuum the dust off the interior fins, and make sure drapes and curtains are several inches above their hot surfaces.

Carson & Dunlop Associates is a consulting engineering firm which has been devoted exclusively to building inspections since 1978.  Their website is located www.carsondunlop.com and they can be reached at (416) 964-9415.

When I talk about the spring real estate market, I mean the market area bounded by 401/ Bloor/Laird//Bathurst. Here, there are some interesting dynamics at play right now in what I would call our “micro” market. 

Take house prices for example. From my desk I see prices are down overall in Toronto by 20% to 25% but not necessarily in the market area (above). Here houses in the price range from $750k to $900k are popular and sought after. And because of the demand they are in short supply. 

And with a low inventory and higher demand, price has become a critical factor.   

So what specific effect does low inventory have in the coming “spring market” on today’s selling price? It means those who want to sell might see prices only off by 10% to 15% not 20%. And the number of days on market is shortened from 50 to 60 days down to 45 or less. 

So if you are thinking of selling, investing or down sizing and you’re in this price bracket this market is not as bad as everyone makes out. 

Plus mortgage rates are at all time lows. This means you can lock in these historically low rates for 5 year terms. Plenty of time for market rebound to take effect and hence recoup previous loses. Especially, if you are in an investment mode and can use the income to defer your costs. 

What I have been outlining here are the subtle market dynamics of a specific market area. A market area I know intimately throughout my professional career. My specialty is in providing strategic advice and council to individuals and families who are wrestling with making real estate decisions. 

Once a sound strategy has been shaped, I then recommend the best qualified agent I think would be to assist in making the transaction a reality. 

If you would like this kind of input email me at jmerry@trebnet.com or call 416 482 8358

My immediate reaction was – now is not the time to sell so try and hold her off until values start to reverse. That line of thinking I realized was clearly not addressing the urgency of the moment and further discussion of alternative funding options in this critical situation would not be helpful.

Finding her the most appropriate sales agent was my biggest concern. What kind of sales energy would she need? I concluded that someone with patience, easy going nature with strong communication (leadership) skills would make a good fit. We quickly identified the right person for the task.

Our objective was to maximize her ROI while recognizing further market declines could easily eat away at the net price. As any future buyer would be firmly in the driver’s seat, price flexibility became the mind set of the sell.

Armed with MLS comparables and being wary of low ball offers the price was set. After two weeks the price was reduced and again after week four.

Week five, an offer came in less than our listing price but conditional on a home inspection. After successfully negotiating the sale price, her home was inspected by a professional inspector; the offer became firm and binding, thus accomplishing our goal for a quick, professionally executed sell.

Spring Toronto Real Estate Report

By David Dunkelman 

Spring has sprung and with it the Toronto real estate market has finally begun to bloom again. While we are not seeing a return to the heady days of the pre-global financial crisis anytime soon we are seeing basic market fundamentals of supply and demand taking shape resulting in numerous real estate transactions throughout Toronto. Real estate after all is bricks and mortar, it is basic shelter, and it is once again proving its staying power. 

So what type of real estate is moving in Toronto and in what locations? Well for starters let’s begin with the much maligned and often picked on condominium sector. Those predicting and waiting for this segment of the Toronto real estate market to bust have been disappointed thus far. In the downtown, midtown, and north Toronto markets in the central core where the Toronto condominium market is most prevalent there have been many hundreds of resales in the price range under $500,000. In the $500,000-$600,000 price range there have been 56 MLS sales to date this year. From $600,000 to $1,000,000 there have been another 61 sales reported. Even the $1,000,000 plus price range has recorded a respectable 11 sales with a leading number, five of these units, being sold in Yorkville.

The resale market for freehold houses in Toronto’s demand neighbourhoods has also been quite brisk of late particularly in the under $1,000,000 price range. The Beach/Leslieville neighbourhoods in Toronto’s east end feature an abundance of entry level housing and together have already combined for 130 sales with the highest Beach sale coming in at $1,390,000.  The Leaside neighbourhood continues to produce brisk activity levels with 51 sales and a high price of $1,635,000. York Mills has recorded 50 sales thus far this year with a high mark of $2,845,000. Don Mills has seen 47 sales in 09′ with $785,000 being the highest price recorded. The ever popular High Park neighbourhood has seen 25 houses change hands while other stats from west-end neighbourhoods include 18 sales in Bloor West Village, 17 sales in Kingsway Park, 14 sales in Sunnylea and 10 sales in Swansea. Kingsway Park recorded the highest sale of the aforementioned west-end neighbourhoods with a $1,630,000 sale.

The always popular central core neighbourhoods from midtown to north Toronto have seen very brisk sales. Houses in these neighbourhoods may be taking a little longer to sell than in the past but they are still selling especially now as Sellers have lowered their expectations and are offering their properties for sale at very attractive prices not seen in the central core since at least 2006 or early 2007. Leading the way Davisville Village has recorded 29 sales in in 2009 with $1,185,000 being the highest price sale. This neighbourhood offers very affordable houses relative to the central core. Ledbury Park has attracted 15 sales, Wanless Park 14 sales, and Bedford Park 12 sales. The higher-end neighbourhoods have also seen some action as Rosedale has logged 11 sales and the same for neighbouring Moore Park. Forest Hill and the Annex have each had 10 sales, followed by 9 sales each in Lytton Park and in Yorkville, Chaplin Estates has recorded 8 sales, the Cricket Club has had 7 sales, Allenby 6 sales, and the venerable Lawrence Park has had 5 sales. 

Please note that the above sales are MLS sales only and do not include condominium sales.

As long as interest rates continue to remain at the current historic low levels the resale Toronto real estate market should continue to improve. Believe it or not we have even seen a few houses sell recently with multiple offers although these are the exception rather than the rule.  Those with secure employment are viewing this market as an ideal time to move up in the market to something larger and more expensive. It will be interesting to see if the Toronto real estate market can build on the momentum seen in March. No one knows for sure but at least for now the news is not all doom and gloom and the Toronto real estate market is proving to be very resilient.

That believe that’s a good a  synopsis of today’s market.

As Business Development Officer for Royal Lepage/Johnston&Daniel Division, with 40 years experience in residential, commercial, and investment real estate I am available as a devils advocate or as a resource person, without any obligation on your part, to discuss your needs. In addition, I can be instrumental in recommending who I feel would the most appropriate agent to fulfill your mandate in the event you need that advice. 

Believe it or not there are a lot opportunities out there you may not be cognizant of. Not the least of which is a 5 year term residential mortgage rate at 3.80%, providing you qualify of course. Absolutely unheard of!

So give me a call at 416-482-8358 to chat, or email me at jmerry@trebnet.com

                                                                                        Julian Merry

But what’s new is that we didn’t see it coming. We felt it might happen yes but didn’t really think it would come. What’s worse if you’re impatient to sell, a buyers market is a hard adjustment. And you may be in for a long wait.

However there is some good news. Yes inventory is up, yes prices are down. But as I commented last week (and it bears repeating again), high priced houses are selling with some sales moving in less than 2 months.

So what is the magic formula for these quick turn around sales?

Getting the three fundamental ingredients right. First, the right agent fit with the right seller to get the chemistry set off the top. Second, having the guts to price the house right. We know we all want to maximize out return (ROI). But in this market that mindset right from the get-go is trouble. MLS comparables may help but there nay not be too many around to use. That’s why you need guts to price right. The third ingredient is to understand price flexibility. Just because you start off with the appropriate price it’s another thing to know when to reduce.

I know of a $1.5 million house that was listed in October 2008 with no movement for over 2 months. Not even a whisper of an offer. Then in January 2009, a new more flexible strategy was put in place. And bingo the house sold, sold at 2006 pricing levels (-15% which is what we predicted).

That was the right move. Why did it take so much longer to sell?  Why – because the three essential ingredients for a selling in a market downturn were not followed.

So the good new is a house will sell if you can stomach adjusting to market conditions.

So is Toronto as buoyant as we are led to believe?  I’d say so after reading the March 2009 piece by Brad J. Lamb who thinks December 08 was the bottom and the time to buy. His comparative figures (for prices and sales volume) between 2008 and 2009 looks like he has a point where he illustrates the beginnings of rebound in the March 2009 vs December 2008. I have to agree with him because our stats show the same trends. 

So what’s really going on? I always thought we were in lock step with the US with almost anything to do with money. Not so it appears. Our banking system is healthier, our credit is flowing, and mortgages are easily available (albeit with tougher scrutiny). 

Maybe just for once is our Canadian traits of prudence and caution are right for the times; which gets me to thinking about what to read and what to believe.  And yes even this blog.  

For sure the real estate business does have its share of blowhards. But the folks I deal with day to day are as straight as they come. Many of our agents are professionals from other disciplines who have built reputations on performance and telling it like it is. So when it comes to looking at the market and wondering what’s going on don’t be too skeptical. Read and dialogue with those who are in the know.  

As Business Development Officer for Royal Lepage/Johnston&Daniel Division, with 40 years experience in residential, commercial, and investment real estate I am available as a devils advocate or as a resource person, without any obligation on your part, to discuss your needs. In addition, I can be instrumental in recommending who I feel would the most appropriate agent to fulfill your mandate in the event you need that advice.

Believe it or not there are a lot opportunities out there you may not be cognizant of. Not the least of which is a 5 year term residential mortgage rate at 3.80%, providing you qualify of course. Absolutely unheard of!

So give me a call at 416-482-8358 to chat, or email me at jmerry@trebnet.com

 Julian

For a copy click here

Bank of Canada Interest Rate

March 3, 2009 0.50% April 21, 2009 0.25%* June 4, 2009 Next meeting date   Source: Bank of Canada

* Bank of Canada indicated it would keep interest rate at this level until June 2010

Bank Prime Lending Rate

March 4, 2009 2.50% April 22, 2009 2.25% June 5, 2009 Next meeting date

 Source: Bank of Canada

US Federal Reserve Board Discount Rate March 18, 2008 0.00–0.25% Arpil 29, 2009 0.00–0.25% June 24, 2009 Next meeting date

Source: US Federal Reserve

Exchange Rate ($CDN/$US)

Exchange Rate ($CDN/$US) $CDN/$US March 30, 2009 0.7925 $CDN/$US April 9, 2009 0.8162 $CDN/$US April 29, 2009 0.8313

Source:Bank of Canada

 

Government of Canada Bonds

Bond Type March 25, 2009 April 8, 2009 April 22, 2009 1 Year Treasury Bill 0.61% 0.64% 0.47% 3 Year Benchmark Bond Yield 1.51% 1.38% 1.36% 5 Year Benchmark Bond Yield 1.95% 1.82% 1.89% 10 Year Benchmark Bond Yield 2.96% 2.89% 2.93%

Source: Bank of Canada

 

Average MLS resale price for local markets

City March 2008 March 2009 Halifax $226,015 $229,548 Saint John $140,491 $158,731 Montreal $250,451 $254,502 Ottawa $288,152 $287,911 Toronto $380,338 $362,050 Hamilton/Burlington $289,226 $263,120 Winnipeg $203,504 $211,408 Saskatoon $289,440 $266,720 Calgary $419,390 $372,114 Edmonton $343,760 $309,032 Vancouver $616,496 $530,763 Victoria $504,194 $441,380

Source: Canadian Real Estate Association

 

Quarterly House Price Survey

Standard Two Storey Market Q1 2009 Average Last Quarter Average Q1 2008 Average 2 Storey % Change Halifax  242,000 240,000 229,000 5.7% Charlottetown  188,000 188,000 185,000 1.6% Moncton  134,500 126,000 135,300 -0.6% Fredericton  210,000 210,000 197,000 6.6% Saint John  268,000 294,695 264,000 1.5% St. John’s  265,000 261,800 229,333 15.6% Montreal  330,056 334,850 332,389 -0.7% Ottawa  318,500 320,083 309,833 2.8% Toronto  516,052 522,050 545,750 -5.4% Winnipeg  251,721 251,171 242,943 3.6% Regina  245,000 245,000 227,500 7.7% Saskatoon  348,500 348,500 395,000 -11.8% Calgary  390,689 417,511 445,792 -12.4% Edmonton  326,713 354,363 372,738 -12.3% Vancouver  828,750 837,500 948,750 -12.6% Victoria  435,000 433,000 460,000 -5.4% National 379,636 385,777 401,040 -6.5%

Creative and nurturing I think have been the two big cornerstones in most people’s lives. And as we age there is a natural tendency to hold on to the past. But our touch stones matter. That’s why summer cottages are the worst nightmare for estate lawyers. Our hearts get wrapped up in nostalgia and we can’t let go. 

Which gets me to the notion of whether to downsize or not. The family home I argue is not like the warm cozy cottage. Our home is the continuity for city life. And it isn’t the original one either.  In fact if statistics are right we move on average every 8 years. So over 40 years we’ve moved 5 times, each time lugging all the family treasures from one house to the other. And did you notice with each move we are moving less and less (even the hoarders). 

My family has a fetish about silver like odd tea spoons, unused tea and coffer urns, empty sterling cigarette boxes, and silver candle sticks waiting for Christmas. The trouble with hoarding silver is the next generation doesn’t like it or want it. It’s too labour intensive. 

The friends I talk to who have downsized wonder why it took them so long. They love it. No, it’s true the rest of the family can’t stay over – but did they ever! Downsizing is simple. Get rid of the house, the empty bedrooms, the unused bathrooms and 50 foot garden. 

In return, take your house equity and move into a smaller space for less money. And with it  will come sun, space, amenities and fun. 

Downsizing is the time for renewal.

They tell me the market is not as bad as everyone thinks. 

The market they are talking about is bounded by 401, Bayview, Bloor and Bathurst. An area I know really well. It’s got the one of Canada’s highest concentration of high end homes, big income earners and it sits on one of the nations busiest public transportation corridors – sort of recession proof. 

Interesting market dynamics are in play here. For example, in past recessions real estate inventories have tended to increase because of economic uncertainty, high interest rates and consumers hoarding cash. Not so today, inventories are lower because prices have dropped to 2007 -2006 levels creating more attractive opportunities and with interest rates at record low levels (4.25% for a 5 year term) there is market action. 

Also, there is an interesting mix of buyer and seller types sniffing the market. There are the opportunists looking for a great value, those want more for less and the young professional marrieds who are trying to pick up there starter home. The sellers are the retirees (downsizing) and the elderly in need of cash and those who sit on increased equity (from pre recession growth) and want more cash.  

So maybe the experts are right. Maybe these low inventory levels are temporary. Maybe sustained low mortgage rates will bring more sellers into the market, increasing supply and knocking the wind out of a buyer’s “bargain” sail.    

And we are not even in the spring market!