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July/August 2010 Edition: Toronto Real Estate Market Views
 

July/August 2010 Edition: Toronto Real Estate Market Views

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    July/August 2010 Edition: Toronto Real Estate Market Views July/August 2010 Edition: Toronto Real Estate Market Views Document Transcript

    • MarketViews MAGDA MO’S PREFERRED CLIENT NEWSLETTER JUL/AUG 2010 Resale pRices Remain fiRm in June The average price of a resale home in the GTA was $435,034 A total of 8,442 units were sold in June through the MLS® in June, which was up by a solid 8% versus the June 2009 system, which was down 23% versus the 10,955 units recorded average price of $403,972. With 2010 now half complete, the in June 2009. However year-to-date sales through June were average price for the year stands at $434,620 or 13% ahead of up 23% to 50,455 compared to the first six months of 2009. the comparable year ago figure of $384,161. The average GTA The record number of existing home sales during the first homeowner has therefore experienced an increase of over half of 2010 were strongly weighted toward the beginning $50,000 in home equity over the past twelve months. Having of the year, as many purchasers decided to move earlier than said this, it is highly likely that price growth in the back half of the seasonal norm in order to get ahead of highly anticipated the year will moderate considerably given the widening gap mortgage rate increases. The July 1st introduction of the HST between listings and sales which continued into the month of (applicable to many resale-related items such as legal fees and June. Accordingly price growth for the balance of the year will moving expenses) was another factor which prompted earlier be in the single digits. than normal buyer activity. GTA RESALE HOME SALES (AVERAGE PRICE) - JUNE GTA RESALE HOME SALES (UNITS SOLD) - JUNE 2007 2007 2008 2008 2009 2009 2010 2010 $360,000 $380,000 $400,000 $420,000 $440,000 6,000 8,000 10,000 12,000 Magda Mo Sales Representative 416-483-8000 sales@magdamo.com | www.magdamo.com PAGE 1
    • Determining the life span of your roof House Smart Assuming the roof system is properly installed, several questions need to be answered in order to determine the life span of a roof. To begin, the type of roof needs to be examined. Whether the roof is sloped or flat, it has consequently a typical asphalt composite shingle may last longer on a roof with a greater slope as it allows the shingle to dry more quickly. two basic elements: the roof deck – which in residential Other factors that affect the roof’s life include its construction is usually wood planks, plywood or oriented proximity to weather – including sun, wind, rain and strand board (particle board); and a weather resistant or snow. Take exposure to the sun as an example. On a water proof finish. sloped roof finished with asphalt composite shingles, the portion of a roof that faces south or southwest A sloped roof can be finished with asphalt composite typically has more exposure to the sun. The sun’s rays can shingles, wood shingle/shake, clay tile, metal or slate cause the shingles to become brittle and age prematurely. tile. This is why some areas may show more deterioration A flat roof’s waterproof than others. The following summary provides a typical life membrane typically expectancy of various roof finish materials: includes several layers or The conditions in an attic plies of felt with a coat Asphalt composite shingle 15-25 years space can also affect a of tar between each ply. Wood shakes/shingles 15-35 years roof’s life expectancy. If The surface of the roof is Slate tiles 35-100 years insulation and ventilation then covered with gravel Built up roof (tar and gravel) 10-30 years levels are inadequate, air to protect the membrane Modified bitumen 15-25 years leaks from the interior from the sun. Other flat Rolled roofing (selvage) 5-10 years living space can cause a roof finishes include build up of warm, moist a rubberized asphalt air. Under certain weather membrane (modified bitumen) or plastic and rubber conditions, moisture condensation in an attic space can membranes. Even a flat roof is slightly sloped to allow cause mould and mildew accumulation on the roof deck the roof to drain properly and dry. and framing, which can lead to wood rot. The slope of the roof must also be taken into account. It takes a trained eye to properly evaluate a roof and to The weather resistant finish of a sloped roof can be understand the many factors that affect the performance compared to an umbrella – designed to shed water or of a roof system. A properly trained home inspector snow and dry before the material becomes saturated. can provide a homeowner with an objective opinion The steeper the slope, the better the roof sheds water; regarding the condition of a roof. PAGE 2
    • Condo Act primer Condo Corner Although Ontario’s revised Condominium Act came into Canadian condominium issues and activities. CCI does force almost ten years ago now, it is still worthwhile to not represent any one profession or interest group. Its reiterate the full significance of the numerous changes members – condominium corporations, unit owners, that were enacted at that time. boards of directors, managers, governmental authorities, lenders and professionals from related fields – are The Act introduced new ownership concepts by encouraged to work together to “create a successful and establishing leasehold condominium corporations viable condominium community.” and four types of freehold condominiums – common elements, phased, vacant land and freehold ownership The Institute serves its members, not the general condominium corporations. Reserve funds, which pay public, but does offer seminars and publications on for major renovations, modernizations and emergencies, condominiums which may be useful to those considering must now be backed up with formal studies, maintained this type of housing. Its condensed edition of the Act, “A at newly-prescribed levels and invested according to an Shortened Version of the Condominium Act, 1998 for approved plan. Most condominium boards will have an Directors,” is a handy reference guide for Boards and a owner-occupied director to represent that segment of less intimidating legal read than the full Act. If you want the residents, a particularly important improvement in some explanation with your legalese, a collection of buildings with high tenancy rates. conference presentations entitled “New Condominium Act Passed!”, includes expert interpretations of sections The new Act, almost three times the length of its of the Act but does assume a basic understanding of predecessor, also places new responsibilities of care, condominiums. diligence and skill and therefore liability on condominium directors and officers, unit owners who are selected to “Just lock the door and go” is the phrase most oversee management of the complex. Unit owners may commonly linked to condominiums, but it may give have more say in changes to the common elements, some buyers a false impression about the carefree assets and services, but they can become responsible for nature of condominium ownership. While this popular insurance deductibles. housing style does lighten the home maintenance load, the financial side of ownership still requires attention. Condominiums, introduced with the first version of the Condominium owners are encouraged to become Act in 1968, have grown to represent approximately one active in management of their complex to protect their third of the home real estate market, according to the investment and preserve the standard of living that first Canadian Condominium Institute (CCI). attracted them to the building. This independent, non-profit organization, formed in 1982, serves as a clearing house and research centre on PAGE 3
    • TO MY VALUED CLIENTS Two of the most often asked questions we as REALTORS® Many economists are forecasting a further 100 basis point get is where are mortgage rates going and whether it is increase by the end of 2010 and another 150 points by the better to go fixed or variable? Of course, there are many end of 2011. If that happens, you can surely expect variable- factors involved and the influences are quite different with rate mortgages to increase along the way. respect to fixed and variable-rate mortgages. At present you can get a five-year fixed rate mortgage for Fixed-rate mortgages are highly affected by bond yields. about 4.6% and the closed five-year variable rate mortgage Right now bond yields are rising thus leading lending is approximately 2.35%. Whether you should go fixed or institutions to increase their rates on fixed mortgages. variable depends largely on your risk tolerance. Fixed-rate Fixed-rate mortgages are now higher than they were just a mortgages offer you the peace of mind of a set rate and a few months ago and that trend could continue if bond yields predetermined amortization schedule, but you will definitely continue to increase. pay a premium for that peace of mind. Variable-rate mortgages, on the other hand, are closely linked As usual, your client referrals are both highly valued and to the Bank of Canada’s benchmark lending rate as well as much appreciated. Until next time, take care! the cost of funds and market conditions. On June 2nd, the Bank of Canada raised its rate by 25 basis points and lenders immediately followed suit on their variable-rate products. PEARLS OF WISDOM Why athletes can’t have real jobs: Football commentator and former player Joe Theismann: “Nobody in football should be called a genius. A genius is a guy like Norman Einstein.” Chuck Nevitt, North Carolina basketball player, explaining to Coach Jim Valvano why he appeared nervous at practice: “My sister’s expecting a baby, and I don’t know if I’m going to be an uncle or an aunt.” Torrin Polk, University of Houston receiver, on his coach, John Jenkins: “He treats us like men. He lets us wear earrings.” “YOuR RefeRRals aRe sinceRelY appReciaTeD!” Magda Mo Sales Representative 416-483-8000 Sutton Group Bayview Realty Inc., Brokerage 1820 Bayview Avenue, Toronto, ON M4G 4G7 sales@magdamo.com | www.magdamo.com In accordance with PIPEDA, to be removed from this mailing list please e-mail or phone this request to the REALTOR ® Not intended to solicit buyers or sellers currently under contract with a broker. The information and opinions contained in this newsletter are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for damages resulting from using the published information. This newsletter is provided with the understanding that it does not render legal, accounting or other professional advice. Statistics are courtesy of the Toronto Real Estate Board. Copyright © 2010 Mission Response Inc. 416.236.0543 All Rights Reserved. D114 PAGE 4