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Market Views
                                          Magda Mo’s

 PREFERRED CLIENT NEWSLETTER                        ...
Benefits of title insurance

The Law Society of Ontario requires all lawyers, when acting        well ...
Fire safety in the home

House f...
To My Valued Clients
There are many government programs available for                                                     ...
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October 2009 Edition: Toronto Real Estate Market Views


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October 2009 Edition: Toronto Real Estate Market Views

  1. 1. Market Views Magda Mo’s PREFERRED CLIENT NEWSLETTER OCTOBER 2009 Market rebound continues in September Magda Mo Sales Representative The rebound in the GTA resale home The average price for September resale market further accelerated in September transactions was $406,877 which was 416-483-8000 with 8,196 properties changing hands up by 10% versus the September 2008 (an all-time high for the month of average price of $368,549. This marks September). That figure was up by a only the second time that the $400,000 whopping 28% versus September 2008 barrier has been eclipsed (the other and brought year-to-date sales volume being this past June when the average to just shy of 68,000 units sold, up 4% price reached $403,972). Continued versus the comparable year ago period. low inventory (15,894 active listings, Considering that year-to-date sales down 42% versus September 2008) is Mortgage were down by 20% after the month helping to propel prices as well as to of April, the market comeback has dramatically reduce the average time Rate Watch been nothing short of astounding. Low required to sell a property (i.e., average interest rates and growing consumer days on market in September was 27, confidence in the economy continue to down a full 9 days or 25%, from the Posted Rates – Oct 6/09 be the two key factors driving market year ago figure of 36 days). performance in recent months. Closed Mortgages 1 year 3.70% 2 year 3.85% 3 year 4.35% Units Sold GTA Resale Home Sales - September 4 year 4.94% 9,000 5 year 5.49% 8,000 Open Mortgages 7,000 6 month 6.35% 6,000 1 year 6.35% 5,000 The above rates are accurate at the specified date and 4,000 have been supplied by a major bank. There may be Avg Price $349,142 $380,132 $368,549 $406,877 variations in rates between different financial lending institutions, and rates are negotiable with individual lenders. To obtain up-to-date posted rates for all financial 2006 2007 2008 2009 institutions, please consult
  2. 2. Benefits of title insurance Legally Speaking The Law Society of Ontario requires all lawyers, when acting well as other matters more specifically outlined in the policy: for purchasers, to inform their clients about title insurance and • defects that would have been revealed by an accurate its advantages. Title insurance is an insurance policy covering up to-date survey the condition of title or ownership of real property at the • survey errors or illegibility of survey time the policy is issued and is used to provide ownership • encroachments protection for a purchaser against losses or damages suffered • contravention of municipal zoning by-laws as a result of title problems. Title insurance is obtained prior • unmarketability of title to closing a purchase for the benefit of the buyer. • defects in the title Although title insurance has been standard in American real • invalidity or unenforceability of the mortgage on title estate transactions, such insurance has only recently gained • liens popularity as part of the typical Ontario residential real • easements (other than usual easements for utilities, etc.) estate purchase transaction. Traditionally, Ontario purchasers • contravention of subdivision, development and other have relied solely on their lawyer’s “legal opinion” that agreements they have “good and marketable title” (to confirm a clean • priority of certain construction liens title). Unfortunately, no lawyer can completely assure a • priority of unregistered easements and rights of way purchaser that there is absolutely no chance of an error in the • fraud or forgery government records, that there are no undisclosed claims, or • solicitor error, omission or fraud that what appears to be the signature of the prior owner or In addition to policy coverage, the insured also receives: consenting spouse is a true signature, there having been no prior fraud or forgery on title. Title insurance can satisfy such indemnity for actual loss or damage for the amount of the “gaps” in a lawyer’s opinion. policy (being the price paid for the property and increasing with inflation and rising value over time to a coverage Title insurance does not replace the role of the lawyer. It which can be double the price paid) simply provides an added level of protection for the purchaser. • payment of legal fees and costs to defend title Ontario lawyers still must search title and certify the status of • a “no-fault” method to resolve title problems title before a title insurance policy can be issued. Typical Cost Typical Residential Policy Coverage For residential real estate transactions with a purchase price For a one-time premium, the policy protects the lender or of less than $500,000, a policy can be purchased for $250- purchaser against losses suffered from matters set out below as $300 (depending on the type of residential property).
  3. 3. Fire safety in the home House House fires kill more people in Canada than in any other industrialized country. This is due partly that most Canadian Smart including the bedroom. If you leave a room, snuff the candle. Tall candles can fall over or out of their stand. Keep them way homes are built with wood and heated bone dry during our from curtains and other items that burn. harsh winters. The basement is often that area where we put things when Homeowners can easily reduce the fire danger by being we’re tidying up the house pending the arrival of guests. fire safety conscious. The most obvious first step is to make From a fire safety perspective, basements are not ideal sure you have at least one working smoke alarm on each storage areas. Down there is the furnace, hot water heater floor. Many people who ignore this step may not wake up and electrical panels. The ceiling is often the exposed wooden when a fire starts. You need to know how to evacuate your underside of the main floor. Add to this cleaning solvents, oily home in pitch-black darkness on your hands and knees rags, papers and we have a dangerous combination. That and with the main stairwell blocked. All occupants should wood paneling that is all too common in basements, if not rehearse this procedure and work out an alternate escape backed by plaster or drywall is a real fire hazard. It readily route from anywhere in the home. If you live in a two-storey burns like crumpled loose papers. Keep the basement tidy, house, consider a roll-up escape ladder, one with wooden throw out, give away or sell items you no longer require, store rungs (metal rungs could be too hot to grab). When you are rags in a closed container. Keep all flammables at least three outside the building, make sure everyone is accounted for feet away from the furnace, hot water heater and electrical and call 911 from a neighbour’s home. panel. The trick is not to have a fire start in the first place. Cooking, Have at least one fire extinguisher (multi-purpose ABC type) smoking and faulty wiring are the major causes of house fires, by the exit of the kitchen and another in the basement near in that order. Keep kitchen counters clean, flammable items the stairs. They should be wall mounted, serviced annually away from stovetops, toasters and other cooking appliances. and you should know how to use them. Fire fighting is best Have a tight fitting lid or cover available for each pan or pot left to the professionals, so only attempt to extinguish a small being used to heat oils, butter or fats which can be quickly fire when you are sure you and everyone else can escape used to snuff out a fire. Do not use flour to douse a fire, unless easily and never attempt it when the fire is between you and you want an explosion. If you must smoke in the house, keep the escape route. it away from the bedroom or the sofa and never smoke when Ask yourself these questions: are the smoke alarms working drowsy or drinking. Better yet, give up smoking. Don’t run right now, do all occupants know how to get out in total electrical cords under rugs, replace damaged or old cords and blackness and then call 911, is there anything in the house if the cord is hot, know you’ve got a problem. that could start a fire, and finally, do I always think (and act) Candles are popular again and are ending up everywhere, “fire safety” in the home.
  4. 4. To My Valued Clients There are many government programs available for of the renovations). For more information, you can call homeowners that you may or may not be aware of. Here is 1-800-387-2000. a brief overview of some of these programs: Government of Ontario - Air Conditioner Rebate Home Renovation Tax Credit - tax credit of up to 15% of Program - consumers receive a $500 rebate when they eligible home renovation expenditures exceeding $1,000 replace an inefficient central air conditioner with a new but not more than $10,000 (note: the tax credit has to ENERGYSTAR® qualified system (note: smaller rebates are be filed on your 2009 tax return and covers expenditures also available for central air conditioner tune-ups and for incurred only up to February 1, 2010). For more information, the installation of a programmable thermostat). For more you can call 1-800-622-6232. information, you can call 1-888-668-4636. EnerGuide for Houses Retrofit Grant - grant to Until next time, take care and please remember that all of homeowners who undertake renovations that improve your real estate referrals are both highly valued and greatly the energy efficiency of their homes (note: the amount of appreciated. the grant is $750 on average, but depends on the amount by which the home’s energy rating improves as a result Magda Mo Your referrals are sincerely Sales Representative appreciated! 416-483-8000 Sutton Group Bayview Realty Inc., Brokerage 1820 Bayview Avenue, Toronto, ON M4G 4G7 “Pearls of Wisdom” Finally some definitions that really make sense: Cannibal: Someone who is fed up with people. Egotist: Someone who is usually me-deep in conversation. Flabbergasted: Appalled over how much weight you have gained. Abdicate: To give up all hope of ever having a flat stomach. Coffee: A person who is coughed upon. In accordance with PIPEDA, to be removed from this mailing list please email or phone this request to the Realtor ®. Not intended to solicit buyers or sellers currently under contract with a brokerage. The information and opinions contained in this newsletter are obtained from sources believed to be reliable, but their accuracy can- not 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 © 2008 Mission Response Inc. (416) 236-0543 All Rights Reserved. D114