OCTOBER 2012 REAL ESTATE UPDATE The average price of a resale home in the GTA in From a volume perspective, the month of September September was $503,662 - a 9% increase versus the witnessed a 21% decline in sales (5,879 transactions September 2011 average price of $463,916. Price versus 7,422 in September 2011). The sales decline growth was strong across-the-board in all segments of was evident across all market segments: single- the market, as per the following: single-detached homes detached homes (-19%), semi-detached homes (-20%), (+8%), semi-detached homes (+12%), townhomes townhomes (-16%) and condominium apartments (+6%) and condominium apartments (+6%). Price (-27%). The soft volume performance of the past few growth was particularly strong in the City of Toronto, months is traceable to several factors, most notably including for condominium apartments which showed stricter mortgage lending guidelines (which came into an 8% year-over-year growth. Barring a major change effect in July) and the extreme front-end loading of sales to the consensus economic outlook, home price in 2012. In addition, the month of September had two growth is expected to continue through 2013. Based fewer working days in 2012 versus 2011 (the majority of on inventory levels, price growth will likely be strongest transactions are conducted on working days). Factoring for low-rise home types, including single-detached the number working days into the equation, the sales and semi-detached houses as well as townhomes. decline moderates from 21% to 13% versus last year. GTA AVERAGE RESALE PRICE GTA RESALE HOME SALES 8 9 10 11 12 8 9 10 11 12 $540,000 12,000 2011 2012 2011 $520,000 10,500 2012esale Home SalesGTA Resale Home Sales $500,000 9,000 $480,000 7,500 $460,000 6,000 $440,000 4,500 $420,000 3,000 $400,000 1,500 JAN MAR MAY JUL SEP NOV JAN MAR MAY JUL SEP NOV James Metcalfe BROKER 416-931-4161 Royal LePage Real Estate Services Ltd. Johnston & Daniel Division, Brokerage 477 Mount Pleasant Rd., Toronto, ON M4S 2L9 www.OurHomeToronto.com | Service@OurHomeToronto.com 1
DECORATING IDEAS FOR THE SEASONSMany people like the idea of updating their interiors for the Backdrops. Have simple shades of white interior that can be aseasons. What techniques do you use to transition your home great backdrop for the changing seasons. In spring a bucket offrom winter into spring and from summer into fall? There are many bright yellow forsythia is usually blooming; summer brings piles ofeasy ways you can change the look of your home to get in tune shells, and stones from walks on the beach and jugs of roses fromwith the seasons. the gardens. Fall can bring out the wool throws draped over chairs, a ﬁre in the ﬁreplace, and bittersweet branches to bring a little bitRugs. Changing times demand changing responses. In today’s of the outdoors in.fast paced world we no longer subscribe to decorating rituals ofthe past. Now we have the TV and the internet. We have no time to Temporary changes are nice because they can happen quickly.change rugs. However, those small subtle changes that we make, Sometimes moving a piece of furniture or using a piece differentlyalmost unconsciously are still meaningful. That means rolling up can stimulate a whole seasonal room change.an oriental rug in the entry and baring the gleaming wood ﬂoors inthe summer. Doing this can save wear and tear on your exquisite If you ﬁnd the task of re-decorating your entire homefamily rug during the most active skate board, roller-blading, razor overwhelming, look for certain areas of your home that wouldscooter seasons when people roll, rather than walk, through your be good for displaying seasonal decorations. The kitchen, dininghome. You may discover that you do like the pristine emptiness. room, and living room are the primary focal areas.Lights. Some people prefer to use candles, hurricane lamps, and Kitchen. There are a couple of easy things you can do to liven itlanterns more in the summer than in the winter. The long twilights up a little. Seasonal dish cloths and hand towels are really cute,and slowly darkening evenings seem to engender them more as well as seasonal ﬂoor mats. Seasonal refrigerator magnets arethan the pitch blackness of winter where people deﬁnitely need also easy to update.light bulbs. For winter a whole round of new 3-way bulbs could beappropriate to ﬁght off the gloom. Install a dimmer switch. They Dining Area. A table runner makes a nice seasonal addition. Youcost under $10 and you can do it yourself. That way in days of can have one made out of Easter fabric for spring, a ﬂoral one fordarkness you will always have just the right degree of light. summer, and one of Christmas fabric. Get creative and accessorize with seasonal place mats, napkins, and napkin rings. You may alsoPlants. Flowers, plants, evolve naturally. All of a sudden something like to decorate the centre of the table for the season. A lot oflooks too wooly or a plant looks too “fall” and it is time to store times you can use a vase of seasonal ﬂowers.the dried hydrangeas and put away the bittersweet. In summer,plants that thrive outside in the warm months can be sent to a Living Room. The main areas of the living room to concentrateplant camp in the yard. When there is so much visible greenery on are the ﬁreplace mantel and hearth, that corner curio shelf,outside you might ﬁnd that you need fewer inside. and the entertainment center. You could lay a garland across the top of the entertainment center that can be changed with theOrganization. Organization is very important in the seasonal seasons: fall foliage for autumn, ﬂowers for spring and summer,home. Storage by season can help slipcovers, pillows, and linens be and evergreens for winter. On the shelves of the entertainmenton hand for quick changes. Once you develop your seasonal center and the curio shelves you may want to rotate your seasonalstyle keep looking on all shopping trips for the perfect accessories knickknacks.to add to your room. The Others. Window clings are great for any season. Door wreathsAdditions. Seashells, boating pictures, or anything nautical is can also be rotated any time of year. The Grapevine wreath ina treat for a summer room. Winter additions can be cashmere the autumn can easily make way for the Christmas wreath. Youthrows, pine branches in vases, blankets on tables, lots of books could have one for every season. A lot of people also have seasonalon hand for winter reading. ﬂags or banners displayed outside the house. 2 This article was contributed by HGTV. Please visit them at www.HGTV.ca
HOME INSPECTION LEGALITIESWhen an offer to purchase is conditional on home inspection, can wording of the condition clause and had the right to decide not tothe buyer arbitrarily decide to kill the deal even if an inspection go through with the deal. The seller appealed.shows little or nothing wrong with the house? The Ontario Courtof Appeal answered this question in a case heard a few years ago. A three-judge panel of the Ontario Court of Appeal heard the case and agreed with the trial judge that there was an obligation onIn August 1998, Margaret and David Marshall signed an agreement the seller to exercise both an objective and a subjective standardto purchase a home in Toronto from Bernard Place Corp. for $1.51 of reasonableness in deciding whether to invoke the inspectionmillion, and they paid a deposit of $150,000 to Chestnut Park Real condition. Based on the evidence, the justices ruled that the buyersEstate. A clause in the agreement made it conditional upon a met the requirements of good faith, honesty and reasonableness.home inspection, as well as receipt of a report from the inspector Based on the clear wording of the clause in the agreement,“satisfactory to him in his sole and absolute discretion. ” the court also ruled the seller had no right to participate in the inspection of the property, nor did it have any right to remedyWhen their offer on the property was accepted, the Marshalls deficiencies found in the report.arranged for a professional property inspection. The inspector’swritten report described the property as a “well-built house” , Ways to Strengthen Home Inspection Clausesnoting that there were no major repairs indicated, and scored the from the Seller’s Viewpointhouse as an above average ‘7 out of 9’. The report noted a numberof minor deficiencies with an estimated repair cost of $2,200. • Require the delivery of the report to the seller • Set a maximum amount for the repairs the buyer has toHowever, more important to the purchasers was their plan to build absorba rooftop garden. In discussing their plans with the home inspector,the Marshalls learned that arranging a water supply to the rooftop • Allow the seller to remedy the defects identifiedgarden would be disruptive and costly, and involve extensiverenovations. They concluded that the property did not meet theirexpectations and, although the building was a “well-built house, ”its construction fell short of “the most exacting standards” thatwere represented to them.The Marshalls notified their agent that they would not waive theinspection condition, and asked for their deposit back. The sellerwas somewhat miffed that the purchasers would back out of a$1.5 million deal over repairs costing only $2,200. They refused toreturn the deposit, claiming the Marshalls did not act reasonably,honestly or in good faith. As evidence of the buyers’ alleged badfaith, the seller pointed to their refusal to justify their decision or tohand over a copy of the inspection report detailing the deficiencies.The issues the court had to decide were whether there was arequirement of reasonableness, honesty and good faith on thepart of the buyers, whether the seller was entitled to a copy ofthe inspection report, and whether the seller could participatein deciding whether the report is or should be satisfactory tothem. The court ruled the purchasers were entitled to rely on the 3 This article was contributed by Bob Aaron, a Toronto-based real estate lawyer. Please visit him at www.aaron.ca.