My wife and I have been known to watch a fair bit of television together. Although we share a love of many of the same shows (Twin Peaks, The Mighty Boosh, …to name a few) our viewing habits are different. She’s happy to sit through marathon sessions of back-to-back-to-back episodes, whereas I like to spread mine out.

When it comes to a show like Mad Men for example, I want time to digest what I’ve seen and let it sink in before moving on. In my opinion, cramming a bunch of episodes in all at once just muddies the experience.

I think the same can be said for viewing properties.

When I’m out with buyer clients I generally like to schedule no more than 4 or 5 homes for us to see. Anything more than that and it can become a bit of a blur.

The most homes I’ve ever shown a client on one outing is 10. By the end of the tour our heads were spinning and we couldn’t remember which house was which. Yes, we took notes and had the listings to refer back to.  But it’s still difficult to keep them separate in your mind. You inevitably remember one house as having the kitchen that was actually part of another house, etc. The details just blend together.

Houses usually aren’t as bad as condos though.

With each house you’re driving to a different area. Each has their own yard, their own their exterior, their own unique layout and feel, etc.

Condos on the other hand can be more difficult to differentiate. And it doesn’t help that you can often view more condos than houses in the same amount of time. Especially when they’re all located within just a few surrounding buildings.

I know that it’s tempting to stuff the itinerary with as many viewings as possible. Especially when our lives are so busy already and we’re looking for ways to maximize the free time we do have. Shopping for a home is a big deal though.

I would suggest that quality, not quantity, is what you want when touring homes of interest. Work with your realtor to select a handful of real contenders to view and you’ll be better off for it.

Happy hunting!

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Following is TREB’s market report for April 2012:  Greater Toronto REALTORS® reported 10,350 transactions through the TorontoMLS system in April 2012. This level of sales was 18 per cent higher than the 8,778 firm deals reported in April 2011. The strongest sales growth was reported in the single-detached market segment, with transactions of this home type up by 22 per cent compared to a year ago.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

A couple of months ago I wrote a blog post asking the question, “Sellers: Should you have a pre-listing home inspection done?” (read it here).

Despite all the benefits, the reality is that some sellers opt not to have one done. Fair enough. It just means that the responsibility is in the buyer’s hands.

Buyers essentially have two options. They can submit a conditional offer and then have a home inspection done after the offer is accepted. Or they can have a “pre-offer” home inspection done before submitting an offer.

In a market like Toronto’s, where offer hold-back dates are common and multiple buyers are coming to the table, pre-offer home inspections make a lot of sense. They allow potential buyers to satisfy themselves ahead of time and to submit an offer without a home inspection condition. A firm offer carries a lot of weight and is much more attractive than a conditional one.

The one drawback here is that you’re spending $400-$500 and a few hours of your time on a property that you may not even end up getting. True, but it’s short-sighted to let that deter you. A few hundred bucks is a small price to pay in comparison to the hundreds-of-thousands you’re spending on the home itself. And the peace of mind you’ll get from having the inspection done is priceless.

Although there are plenty of home inspection companies in the city of Toronto, Carson Dunlop & Associates Ltd. seems to be the go-to choice for many. They do a pretty good job of explaining the pre-offer home inspection themselves…

Following is an excerpt from the “Pre-Offer Home Inspection” page on Carson Dunlop & Associates’ website:

A Carson Dunlop Pre-Offer Home Inspection provides buyers with a competitive advantage when bidding on a home. By having a comprehensive inspection completed before offers are presented, our clients have an opportunity to make their offers more attractive with fewer conditions. The Pre-Offer Inspection provides our clients with unparalleled insight on the workings of the home to help them make an informed offer.

Our Services Include:

• A summary page detailing the key findings
• Improvement recommendations for conditions, with time frames and ball park costs
• Photos and colour illustrations for clarity
• A copy of our Home Reference Book ($69 value) to help understand how houses work, what wears out and important maintenance suggestions.

Carson Dunlop Pre-Offer Home Inspection clients who are not successful with their home buying bid receive a $50 credit towards their next inspection. Another Carson Dunlop advantage!

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Two years ago I wrote a blog post asking the question, “When does the spring real estate market actually begin?”

Among other things, I took a look at the downtown market stats (districts C01 & C08) and found that there was an almost 80% increase in new listings in the week after Easter, compared to the week before.

Although we only have three full days of stats for the same week in 2012, I thought it would be interesting to see how they stack up against those from 2010.

Interestingly, the contrast we saw in 2010 isn’t there now and this week’s numbers aren’t looking much different from last week’s…

Here’s the article as posted in April 2010, with the updated 2012 stats (you can read the original article with 2010 stats here):

When Does The Spring Real Estate Market Actually Begin?

The answer to the above question depends largely on who you’re asking.  Speaking as a Realtor I’d say that the spring market actually starts as early as January.  Granted, the number of listings and sales this early in the year aren’t going to match the level of activity we see in March, April, May,…  None-the-less there’s activity in January and it’s certainly the start of a market that will grow over the coming months.

Many feel that the spring market doesn’t really begin until the month of March.  There’s some truth to this in the sense that March is generally when we start to see signs of warmer weather and buyers are more apt to tour the neighbourhood for open houses.

March is a little tricky though, as a number of buyers, sellers and realtors aren’t fully participating due to commitments associated with “March Break”.  At least those with families anyway.

I would suggest that the safest bet is to consider the week after Easter Weekend as the full fledged beginning of the spring real estate market.  A number of sellers wait specifically until after Easter to put their property on the market.  And a number of buyers wait until then to kick their search into high gear.

However, this year may be a bit of an exception. Monday through Wednesday of last week we saw 176 new listings (condos, lofts, and houses) hit the market in TREB districts C01 and C08 (east of Dufferin / south of Bloor / west of the DVP).  Monday through Wednesday of this week we saw 172 new listings. Not much difference at all.  A decrease actually.

What does this mean? I’d suggest that it means a number of buyers chose not to wait until after Easter this year to list. And indeed, if you look at the numbers you’ll find that there were more new listings this year in the week before Easter (238) compared to the same week in 2010 (190).

Regardless of when the spring market actually starts, we’re at mid-April now and things are movin’ & shakin’.  And they’ll remain so for the coming months.  Then what?  The summer market of course!  When does that start?  Well……

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Following is TREB’s market report for March 2012:  Greater Toronto REALTORS® reported 9,690 sales through the TorontoMLS System in March 2012. This result was up by almost eight per cent in comparison to the 8,986 deals reported during the same period in 2011.

“The GTA resale market has not suffered from a lack of willing buyers this year. Buyers have been spurred on by the positive affordability picture brought about by low mortgage rates,” said Toronto Real Estate Board President Richard Silver. “The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average.”

The average selling price in the GTA was $504,117 in March – up by 10.5 per cent in comparison to March 2011.

“The number of new listings was up last month in comparison to March 2011. However, based on the historic relationship between price and listings, the GTA resale market should be better supplied. If competition between buyers remains as strong as it is right now, we will almost certainly see an average selling price above $500,000 for 2012 as a whole,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

I was viewing condos at Bathurst & Lakeshore earlier this week with a buyer client of mine. The plan was to see six properties in total, all located within two neighbouring buildings. We got in to see five of the properties, no problem. Unfortunately, condo number six – the one she really wanted to see – didn’t go as smoothly…

First of all, the lock box wasn’t where they said it would be. We had to explore all three stairwells before finally spotting it, all the way up on the landing to the next floor!

Then, the code they gave us wasn’t working. I tried a few alternate number variations with no success and decided to phone the listing brokerage to confirm the code.

Indeed, the code they had on their end was the same one I first tried. They had no clue what could be wrong.

I had the listing agent paged and we waited patiently outside the suite. Ten minutes later my phone rang. The agent too had no clue what could be wrong and told me that he would have to try and get a hold of his partner, as they were the one who really knew more about this particular listing.

We waited another 10 minutes. No phone call. We left.

Ultimately, my client and I both went home empty handed that day. I wasn’t able to show her the property that I felt might’ve been a real contender and she wasn’t able to see the property she was most looking forward to.

Granted, mix ups do happen and keys sometimes go missing. Fair enough. This was a bit more than that though.

As frustrating as it is for me that we couldn’t get in to see the property, it’s the seller I really feel bad for. They have no idea that ready, willing, and qualified buyers are coming to view their condo – only to have the door slammed in their face when they arrive.

How many other agents unsuccessfully tried to show the property that day? How many of them do you think are actually going to rebook and come back again another day, especially with the looming possibility that the key still might not be there!

As a seller you’ve often only got one shot at getting your property seen by a potential buyer. If they can’t get in to see your home then they’ll just move on to the next.

There are plenty of important factors in ensuring your property gets ample exposure; staging, photography, list price, to name a few. But when you’re realtor can’t even handle the small task of making the key available for showings… all the marketing in the world isn’t going to help a lick.

If you’re thinking of selling and would like to find out more about my marketing plan, feel free to contact me for more info.  

That’s right. A bungalow in north Toronto sold earlier this month for $421,800 over the asking price. The home was listed at $759,000 and sold in multiple offers for a whopping $1,180,800.

According to an article from today’s CBC News (reposted in full, below), there were a total of five bids above $1 million dollars. This tells us that the successful purchaser wasn’t alone in their seven figure valuation of the property.

Needless to say, there’s been plenty of attention from the media, realtors, and the home buying public over the last few weeks.

The price isn’t the only reason this story is generating so much hoopla though. The location and style of the home are notable as well.

Remember, we’re talking about a bungalow… in north Toronto…

Would the reaction have been as strong if this was a 3-storey detached in The Beach? Or a mansion in the Annex?

Or what about Queen West? A colleague of mine just listed a stunning million dollar property there. I popped into the agent’s open house today and the place really is impressive – something right out of Architectural Digest. Now that is the kind of property (and location) that could sell for a significant price without all the accompanying hullabaloo.

Okay, we’ve looked at price, location, and style of home. From what other angle can we view this north-Toronto bungalow sale?  How about the type of buyer involved in the purchase? That’s the focus of today’s CBC News article. Check it out…

———————————————————–

Offshore Buyers Pricing Canadians out of Housing Market

Globe & Mail | By Prithi Yeljaj | March 15, 2012

Overseas investors are snapping up properties in Canada’s largest cities, driving up prices and pushing ordinary Canadians out of the housing market, observers say.

Real estate experts call it the “new reality,” and the high price paid for a north Toronto bungalow is the latest evidence.

This month, the three-bedroom bungalow, circa the 1960s and without much updating, sold for $421,800 over the asking price, creating a buzz among agents and other buyers.

Located in Willowdale, where similar detached houses typically sell for just short of $900,000, the bungalow at 300 Dudley Ave. was listed at $759,000.

The winning bid of $1,180,800 came from a university student whose parents live in China and own a business in San Francisco. There were four other bids of more than $1 million.

Michael Adelson represented the seller of the Willowdale bungalow.

“The initial response was quite vociferous,” said Michael Adelson, a Re/Max agent who represented the seller and received several phone calls about the deal after it was done.

“There’s a lot of anger among Canadians who earn money here that they’ve been priced out of the market. There is some degree of anxiety about how people are going to compete with these hyper-inflated prices.”

‘Outrageous and borderline bizarre’

Adelson declined to discuss the specifics of the Willowdale deal, citing client confidentiality.

But CBC business commentator Michael Hlinka called the deal “outrageous and borderline bizarre.”

The strong reaction to the price likely stems from how it changes the vision of affordability for average Canadians, he said.

Property markets in other large cities, such as Vancouver and Calgary, are undergoing similar pricing shocks, he said.

“We’re looking at this through a prism of our expectations growing up in Canada in the 1950s, ’60s and ’70s, when part of the Canadian dream was that you would own your own single-family home,” Hlinka said. “But as Canada matures, we’re going to be looking at a new reality, where that may be out of reach. And I don’t think you can turn back the clock.”

Brad Lamb says people who live in downtown Toronto will have to be rich or settle for condos. (Brad Lamb Real Estate)

Toronto real estate mogul Brad Lamb said Canadians’ home-buying expectations have to change, but he doesn’t believe that overseas investors are to blame.

The scarcity of the product — in this case, single detached homes — is key, he said. And as the Toronto population grows and land available for new houses becomes scarce, the competition for these homes will become even more intense.

Condos are the alternative. Already, they’re the norm for families wanting to live in the central cores of cities such as New York and Chicago, he said.

“It’s an illusion for people to think they can live in downtown Toronto in a detached home and not be wealthy,” Lamb said. “Ordinary people can’t live in central London or central Paris or central New York.

“If you want to live in central Toronto, you’re going to have to live in a condo or be a millionaire. That’s the reality. … It’s not a bad thing. It’s the way cities evolve.”

Steve Matthews, a Re/Max agent in Toronto, says inflated prices make it harder for ordinary Canadians to buy houses. (Steve Matthews)

Inflated prices, such as the price fetched by the Willowdale bungalow, do make it difficult for ordinary Canadians to get into the market, no matter who buys the house, said Steve Matthews, a Re/Max agent in north Toronto.

“It skews the market. Now, the person who lives next door and the person who lives down the street think they should get that price, too. It also generates resentment because it makes it tougher for everyone — buyers, agents, banks — so there is a ripple effect that goes beyond the immediate sale.”

Foreign students drive market

As more people get exposure to Canada as an offshoot of globalization, the overseas investor market will rise, Hlinka said. As an instructor at George Brown College in Toronto, he has seen an explosion in the number of foreign students.

“When their parents come to visit, they get an idea of what real estate costs here, and they can’t believe how cheap it is. They want to buy because they think it’s a bargain.”

In addition to China, investors pouring money into real estate are flocking to Canada from the Middle East, Korea, Russia, India and the Philippines as well, said Tony Ma, who owns HomeLife Landmark Realty in Markham.

Tony Ma, owner of HomeLife Landmark realty, says buyers from China find Canadian housing prices low, compared with what they pay at home. (Tony Ma)

About 65 per cent of Ma’s agents are Chinese and the bulk of his business comes from Chinese clients. Most are new immigrants to Canada, but about 20 per cent are foreign investors, including parents overseas who buy on behalf of their children studying in this country.

Fewer than five per cent are pure investors with no ties to Canada, said Ma, a former neurosurgeon who moved to Toronto from Zhengzhou, China, in 1998.

“Most of our buyers are part of Canadian culture. I don’t think they are going to push local Canadian people out of the market. When immigrants come to Canada today, they have money, not like when I came to Canada 20 years ago. I didn’t have money.”

Last year, buoyed by his strong ties to the mainland China market, Ma’s agency sold 263 homes priced at more than $1 million, with about 40 per cent of those being all-cash deals with no conditions attached.

Chinese drawn to Canada

Canada’s stable government and banking system and the relatively low prices draw investors, he said, pointing out that while condos in downtown Toronto can sell for $800 per square foot, in Beijing, the price is $2,000 per square foot and in Hong Kong it’s double that.

Moreover, to control prices, the Chinese government allows each family there to bank finance only two properties — one to live in and one to invest in — and buyers must pay 100 per cent cash for anything above the two-property limit, Ma said.

Not only are prices in Canada more affordable, homes and condos are a better value proposition, since they come ready to move into, unlike in China, where buyers get a concrete shell they have to pay to finish, he said.

“So they see an $8 million house here, they see the quality, they see the finishes and they think it’s cheap,” Ma said. “They can move in today.”

Vancouver tops the list with Chinese investors because of the city’s temperate climate and proximity to their homeland, he added.

Janet Sinclair of Re/Max Hallmark Realty Ltd. in the Beaches neighbourhood of Toronto, routinely deals with foreign investors.

“They have driven prices up,” she said. “Whenever we launch a new condo downtown we get a number of Hong Kong investors and a lot of people coming over from England. People want to put their money in Canadian real estate because they think it’s safe.”

Sinclair recently dealt with a Hong Kong investor representing a dozen buyers, who happened to be family members from back home. They snapped up units in a new waterfront condo building and are now interested in another project in the Beaches.

She also recently sold a penthouse condo in downtown Toronto to Swiss investors for $1.25 million.

“They didn’t bat an eye at the price. They said in comparison to what they pay in Switzerland, these prices are nothing. Our prices are not scaring them at all.”

Builders tearing down old houses

The Willowdale buyer who paid the premium price is stinging from the negative reaction to the sale and declined to be interviewed.

Adelson said the Yonge Street corridor between Highway 401 and Finch Avenue is in demand because of the subway and its proximity to York University and Seneca College. Along with a thriving retail strip and a planned new Whole Foods, 10 new condominium projects are in the works.

The area is a magnet for certain ethnic groups, including people from the Middle East and China, Adelson said.

“It’s a cultural thing. Their communities are already there. If you go down to the Danforth, their stores are not there, so that’s not as attractive a location for them.”

The area is also rife with redevelopment as builders tear down older homes and replace them with monster houses or two smaller units.

That’s just what a buyer from China, who recently bought a tear-down bungalow in the area for $720,000, plans to do, said Al Sinclair, the Hallmark Realty sales representative who sold him the property.

The buyer became familiar with the area through visiting his daughter, a doctor who lives there. He plans to rent out the house for two years until his building plans are approved, then tear it down and build several townhouse units.

“He thinks the Toronto real estate market has a long way to go,” Sinclair said. “He’s right.”

Only pockets of Toronto are of interest to overseas investors, including North York and the downtown core and not areas like Leslieville in the east end, Adelson said. Although that neighbourhood is considererd hot and the property values are rising, it has not experienced the overheated bidding wars seen farther north.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Following is TREB’s market report for Febuary 2012:  Greater Toronto REALTORS® reported 7,032 sales in February 2012 – up 16 per cent compared to February 2011. New listings were also up over the same period, but by a lesser 11 per cent to 12,684. It is important to note that 2012 is a leap year, with one more day in February. Over the first 28 days of February, sales and new listings were up by ten per cent and six per cent respectively.

“With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price. Price growth will continue to be very strong until the market becomes better supplied,” said Toronto Real Estate Board President Richard Silver. “It is important to note that both buyers and sellers are aware of current market conditions. This is evidenced by the fact that homes sold, on average, for 99 per cent of the asking price in February,” continued Silver.

The average selling price in the TREB market area was $502,508 in February – up 11 per cent compared to February 2011. The Composite MLS® Home Price Index for TREB, which provides a less volatile measure of price growth compared to the average price, was up by 7.3 per cent compared February 2011.

“If tight market conditions continue to result in higher than expected price growth as we move into the spring, expectations for 2012 as a whole will have to be revised upwards,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “While price growth remains strong, the average selling price remains affordable from a mortgage lending perspective for a household earning the average income in the GTA.”

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Before listing a house for sale, I always advise my seller clients to have a pre-listing home inspection done. In my experience it’s best for everyone involved (the sellers, the buyers, and the realtors) to know the condition of the home before an offer is presented.

Any reasonable buyer is going to make their offer conditional on having a home inspection anyway, so why not nip potential problems in the bud?

If we’re holding back offers on the property, then having a pre-listing home inspection is even more essential.

Sure, buyers who are planning on participating on offer night have the option of getting their own pre-offer home inspection done. But not everyone is keen on spending $400-$500 and a few hours of their time on a property that they might not even end up getting (more on this in a future blog post).

I’ve seen plenty of buyers decide to “sit this one out” and not participate on offer night because there was no pre-listing home inspection available.

Although there are plenty of home inspection companies in the city of Toronto, Carson Dunlop & Associates Ltd. seems to be the go-to choice for many. They do a pretty good job of explaining the pre-listing home inspection themselves…

Following is an excerpt from the “Home Seller’s Inspection” page on Carson Dunlop & Associates’ website:

Why A Pre-Listing Home Inspection Makes So Much Sense:

With a traditional buyer’s (or pre-purchase) inspection, the buyer and seller negotiate the terms of the sale and agree on price. The sale is conditional on a home inspection. At the inspection the buyer finds out what condition the home is in. It sounds a little backwards already, doesn’t it? Why would you buy something before you know what shape it’s in?

The buyer gets the report, finds out the home is not perfect (none are) and feels they have overpaid. They want to re-negotiate, or worse, they want out of the transaction. The real estate sales professionals are in an awkward spot, because they have already sold the home, going through a tough negotiation. Now they have to tell the seller that the buyer wants a lower price. The sales process has to start over again, or the deal falls apart. Neither side is happy.

When the condition of the home is disclosed before the inspection, there are no surprises. It’s as simple as that.

Why is it not always done this way? Because of the way home inspection has grown. When there were no home inspections, this was not an issue. When home inspection was in its infancy, sellers hoped that buyers would not ask for an inspection. But now, virtually all buyers want an inspection. The game has changed. Sellers now understand that there will be an inspection, and it may well cause a problem. Rather than sit by and desperately hope for the best, sellers can control the situation.

Benefits of a Pre-Listing Inspection:

1. Everyone knows the condition of the home, and there are no 11th hour surprises.
2. No home is perfect and a good inspection report will provide that perspective.
3. If there are issues raised that need a second opinion or further evaluation, that can happen before the house is listed, rather than in the middle of a high stress negotiation.
4. Sellers can make improvements or reflect the condition in the listing price. (We prefer the latter.)
5. Buyers are more comfortable making an offer, because they know what they are getting.
6. In competitive situations, prospective buyers may not make an offer because they are not able to get an inspection, or the odds are high that the money spent on an inspection will be wasted. A seller’s inspection may allow more potential buyers to make an offer.

In today’s environment, with buyers getting home inspections, the seller is very wise to have the inspection done before the house goes on the market.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Gotta love the photo I chose for this blog post. Two scantily clad ladies, an enormous electric guitar, cardboard flames and a glass box full of millions. Ah, Vegas in all its mundane glory…

How many $5 million dollar condos do you think sell in the city of Toronto in any given year? Ten? Twenty? I ran a search and found that a total of seven condos sold for $5 million or more last year on MLS.

Okay, how many $5 million dollar condos do you think pop up for sale on any given day?

Well, just last Thursday there were two. Both properties were posted on MLS within 1/2 hour of each other. Both listed at the exact same price (just over $5 million).

What’s interesting to note here is the different neighbourhoods that these two condos are located in.

One of them is in Yorkville. No surprise there, as six of the seven sales from 2011 were in Yorkville (number seven was in Rosedale-Summerhill). And ten of the eleven condos currently listed for $5 million+ are in Yorkville.

The other new listing is in the Entertainment District/Queen West area. $5 million dollar sales are not par for the course there. In fact, I couldn’t find anything that sold anywhere downtown for over $3.5 million.

Comparing the two listings though, it’s impressive to see how much more $5 million dollars will get you downtown vs Yorkville…

• The Yorkville condo is just under 2,900 square feet. The downtown condo clocks in at over 5,000 square feet!
• Price per sqaure foot? The Yorkville condo is listed at over $1800/sq ft. The downtown condo is listed at under $1050/sq ft.
• What about your car collection? The Yorkville condo comes with two parking spaces. The downtown condo comes with five!

It’s nice to see that even at a multi-million dollar price point, comparison shopping is a worthwhile activity

If you’ve got $5 million dollars to spend on a home and would like to know how I can help, feel free to contact me for more info.