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for more detailed GTA statistics: JAMESMETCALFE.INFO
416-931-4161
James Metcalfe BROKER
www.OurHomeToronto.com | Service@OurHomeToronto.com
REAL ESTATE UPDATE
Royal LePage Real Estate Services Ltd.
Johnston & Daniel Division, Brokerage
477 Mount Pleasant Rd., Toronto, ON M4S 2L9
APRIL 2013
The average price of a resale home in the GTA in March was
$519,879 - which represented a 4% increase versus the March
2012 average price of $500,875. Price growth occurred across
all key market segments, as per the following: single-detached
homes (+4%), semi-detached homes (+5%), townhomes (+5%)
and condo apartments (+2%). The average price over the entire
first quarter of 2013 was $508,066 - which is up by slightly over
3% versus the first quarter of 2012. Price growth continues to
be more robust in the low-rise market segments where a lack of
supply remains an issue.TheToronto Real Estate Board’s full year
price forecast remains at $515,000 - which represents a 3.5%
annual rate of growth.
From a volume perspective, the month of March witnessed a
17% decline in sales (7,765 transactions versus 9,385 in March
2012). In the first quarter of 2013, total sales were 17,678 - down
by 14% as compared to the first quarter of 2012.The major issues
affecting volume continue to stricter lending guidelines for high-
ratio borrowers, the additional upfront Land Transfer Tax in the
City of Toronto and a shortage of listings in the low-rise market
segments. Volume growth varied by market segment, as follows:
single-detached homes (-18%), semi-detached homes (-14%),
townhomes (-15%) and condo apartments (-18%). Having said
this, home ownership remains affordable for a household earning
the average income in the GTA.
GTA RESALE HOME SALES
8 9 10 11 12
GTA Resale Home Sales
MARJAN MAY SEP NOVJUL
3,000
1,500
4,500
6,000
7,500
9,000
10,500
12,000
201320122011
GTA AVERAGE RESALE PRICE
8 9 10 11 12
sale Home Sales
MARJAN MAY SEP NOVJUL
201320122011
$400,000
$540,000
$420,000
$440,000
$460,000
$480,000
$500,000
$520,000

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Jack and Susan thought they found the condominium of their
dreams at 5 Rowntree Road in the Kipling and Finch area of
northwest Toronto. They loved the building, the view and the
amenities. They could take their two dogs on long walks in the
area.
So they bid on the unit, got involved in a bidding war and won the
auction.The deal was conditional on their being satisfied with the
building’s certificate of status.
The status certificate has all the condo rules along with other
important information, such as who the management company
is, the financial statements, the amount of money in the reserve
fund and when the last reserve fund study was completed.
It was at that point that Jack and Susan came to see me. It turned
out the rules only allowed one pet and the pet could not be more
than 25 pounds. Their dogs weighed closer to 50 pounds each
and they wanted to know if this rule could be easily changed.
Since the rule was found in the condo declaration, it would
require 80 per cent of owners to change it. I told them that in
my experience, this was unlikely to happen. It is very hard to
get condominium owners to agree on anything, and pets are a
very sensitive subject. Many owners choose buildings precisely
because there are pet restrictions.
They told me that they heard of some owners who had two dogs
or heavier pets and no action was brought against them. Could
they rely on this, buy the unit and hope no one would make a
fuss? This is a difficult question because it raises the issue of
what happens when a condo building is not enforcing its rules.
Does it allow others who buy in to do the same thing?
In some legal decisions, when boards did not enforce their pet
rules, they could not take the position against new owners who
brought pets with them. In other cases when buildings restrict
pets, owners have made Human Rights arguments, claiming
that they relied so much on their pet that to force them to remove
the pet would leave them emotionally disabled. Still, I could not
give them any guarantee that they would be able to keep their
dogs if they moved in.
In the end, they decided to cancel the deal, as they did not want
to take the chance that they would have to remove their dogs
later. My question is: Why were they bidding on this unit in the
first place?
A key step in your research of resale condos is to find out what
the status certificate says first, before you bid. Anyone can
order it for $100. When you interview real estate agents, ask
them if they have this information. The top agents know which
buildings are well run and which aren’t. They also should know
which buildings have unusual restrictions. You should too.
If you are renting a condo and the building has pet restrictions,
make sure that the condo rules are attached to the lease and
that your tenant understands that they are not permitted any
pets.
Finally, if a pet is not supposed to be in your building or if it is
bothering the other unit owners, you need to report this to your
board as soon as possible.
Then the board or the management company needs to get
involved quickly to work with the owner to solve the problem, or
if necessary, declare the pet to be a nuisance and obtain an order
to remove it from the building.
This article was contributed by Mark Weisleder, a Toronto-based lawyer, author and speaker to the real estate industry. Please visit him at www.markweisleder.com
THIS COUPLE HAD ATWO-DOG CONDO PROBLEM
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CONDO
CORNER

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ANSWERINGYOUR ELECTRICAL QUESTIONS
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How do I determine the electrical capacity of my home? Will
it handle my requirements?
The electrical service provided to a home is measured in amps,
which is a measure of the “flow rate” of electricity through a
wire. Today’s average home is constructed with electrical
service of 100 amps, which means that the large main wires
entering the home can safely handle 100 amps of current before
there is a risk of overheating. Some homes, however, are built
with 200 amp service while homes built prior to the late 1950s
were built with 60 amp service. In order to determine the
electrical capacity of the home, an inspector will check the size
of the wires entering the home to verify that they are compatible
with main electrical disconnect (breaker or fuse). Modern homes
are equipped with breakers to detect if too much current is
flowing through the wires.The breaker will shut off to prevent the
overheating of the wire, which is a potential safety hazard.
A home’s electrical capacity is dependent upon the demand
within a home. The more electrical fixtures and appliances there
are, the larger the service requirement. Appliances with the
highest demands include stoves/ovens, dryers and electrical
water heaters. Saunas, spas and workshops also draw large
quantities of electricity. If many of these appliances are operating
at the same time, the electrical service may be inadequate
causing the main breaker or fuse to trip if the flow of electricity
exceeds the safe capacity.
My home has outlets that are not grounded. What are the
risks and consequences?
Grounded electrical systems were implemented as a safety
feature in homes after the 1950s. Copper grounding wires
provide a path to redirect potentially harmful electricity to a safe
location if an element of the electrical system malfunctions.
A ‘hot’ wire that comes loose and contacts the metal casing of
an electrical fixture or appliance can cause this ‘stray’ electricity.
For example, if a washing machine malfunctions, the stray
electricity should be guided through the grounding wire of the
appliance to the grounding wire of the homes electrical system.
Ground wires should be connected to all areas of the electrical
system (i.e., fuse panels, light fixtures, outlets, junction boxes,
etc.) providing electrically unobstructed paths to minimize the
risk of shock.
Prior to the 1950s, electrical systems were constructed without
ground wires as noted by two-pronged outlets. Older homes
with three-pronged outlets have had a grounding system installed
– or a two-pronged outlet replaced for aesthetic reasons –
without upgrading the wire service. This latter situation can give
a homeowner a false sense of security. If an appliance with a
three-pronged plug is plugged into an ungrounded three-pronged
outlet, a safety hazard might be created since this equipment is
designed for a grounded outlet. A home inspector can identify
the grounding properties of a home and make the appropriate
recommendations for upgrades where potentially unsafe
conditions exist.
This article was contributed by AmeriSpec Canada, a leading Canadian home inspection company. Please visit them at www.amerispec.ca
HOUSE
SMART

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James Metcalfe BROKER
416-931-4161
www.OurHomeToronto.com | Service@OurHomeToronto.com
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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 © 2013
Mission Response Inc. 416.236.0543 All Rights Reserved. K0191
“YOUR REFERRALS ARE SINCERELY APPRECIATED! THANK YOU!”
Royal LePage Real Estate Services Ltd.
Johnston & Daniel Division, Brokerage
477 Mount Pleasant Rd., Toronto, ON M4S 2L9
GTA Res
The federal budget that was delivered on March 21st included
few mortgage changes. However, one exception was a new
proposal to restrict the use of default insurance on low-ratio
mortgages (i.e., those with 20% or more equity). Here are some
of the more obvious reasons behind this move:
• The federal government wants to lower its exposure to
“nonessential” mortgage insurance which the taxpayer is
ultimately on the hook for.
• Ottawa also wants to encourage lenders to assume more
risk themselves when extending credit, instead of relying
on government-backed mortgage insurance.
• The Department of Finance wants to free up CMHC
insurance availability. CMHC has a legislatively-capped
$600 billion insurance limit and it’s running close to that
limit now. Bulk insurance eats into that available capacity
and is deemed less essential to the housing market than
regular insurance.
• Finally, the feds also want to encourage banks to keep more
capital on hand by restricting their ability to “portfolio insure”
large numbers of mortgages.
The last point may put upward pressure on mortgage rates as
the banks cost of funding mortgages will rise if they are required
to raise additional capital to hold low-ratio mortgages on their
balance sheets.
Having said this, the whole point of mortgage insurance is to
encourage the housing industry by offering support primarily to
first-time buyers who are most likely to be high-ratio borrowers.
Consequently, the Department of Finance’s proposals with regard
to insuring low-ratio mortgages appear to be quite reasonable.
As usual, your client referrals are both highly valued and much
appreciated. Until next time, take care!
“The 50-50-90 rule: Anytime you have a 50-50 chance of getting something right, there’s a 90% probability you’ll
get it wrong.” – Andy Rooney
“Here’s something to think about: How come you never see a headline like ‘Psychic Wins Lottery’?” – Jay Leno
“The best argument against democracy is a five-minute conversation with the average voter.” – Winston Churchill
“I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and
stones.” – Albert Einstein