Frank Steinhausen, Broker
FSteinhausen@REMAX.net
RE/MAX Rouge River Realty Ltd., Brokerage
Phone 905-428-6533
Fax 905-668-1850
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Archive for the 'Real Estate' Category
GTA Resale Housing More Balanced in June
July 6th, 2008 Categories: Buying real estate, Real Estate, Real Estate News, Selling real estate, Whitby
July 4, 2008 — The trend toward more balanced market conditions continued in June with 8,600 properties changing hands, Toronto Real Estate Board President Maureen O’Neill announced today.
It is important to note that in this release you will also find market numbers specific to the resale housing activity in 2006 and 2007. This comparison is provided to help present a more accurate perspective of the resale housing market of 2008.
At $395,866, the Greater Toronto Area average price for last month increased by four per cent compared to June 2007 when it was $381,963. The City of Toronto’s average price of $433,082 last month increased three per cent from $421,139 in June 2007. In the 905 Region, last month’s average was $370,559, an increase of four per cent, from $355,240 in June 2007.
In the first two quarters of 2008, the average GTA price increased four per cent to $390,054 from $373,719 during the same time period in 2007, and up 9 per cent from the $356,977 recorded in the same period in 2006.
In the City of Toronto, the average price in 2008 increased four per cent to $427,198 from $411,530 in 2007, and up 10 per cent from $389,313 during the same period in 2006. In the 905 Region the increase was five per cent to $365,536 from $347,852 a year ago, up 9 per cent from
$334,220 in 2006.
“Although June 2008 sales in the Greater Toronto Area (GTA) have declined 18 per cent to 8,600 from the June 2007 total of 10,451, June 2007 was the best performance ever for that month,” said Ms. O’Neill.
“This year we’re seeing a return to calmer conditions but the market remains healthy. When compared to the 8,730 transactions in June 2006, GTA sales activity in June 2008 decreased by only one per cent.” Record month June 2007 saw a 20 per cent increase over June 2006.
In the City of Toronto there were 3,481 transactions last month, a decline of 18 per cent from June 2007 with 4,238 sales but down 4 per cent over the 3,641 transactions in June 2006. When you compare record month June 2007 with June 2006, a period before the Toronto Land Transfer Tax went into effect, sales increased 16 per cent.
The 905 Region experienced an equivalent decline of 18 per cent, with 5,119 sales last month compared to 6,213 transactions in June 2007 but a one per cent increase over the 5089 properties sold in June 2006. When you compare record month June 2007 with June 2006, sales in the 905 Region increased by 22 per cent.
In the first two quarters of 2008, GTA sales declined 14 per cent to 43,685 transactions from 50,648 during the same time a year ago and down five per cent from the 45,797 recorded in the same period in 2006. When you compare the first two quarters of 2007 with the same period in 2006, GTA sales increased by 11 per cent.
In the City of Toronto, sales for the first two quarters declined 15 per cent to 17,370 from 20,574 in 2007 and down 8 per cent from 18,917 in 2006. In the 905 Region sales declined 12 per cent to 26,315 from 30,074 in 2007 and down 2 per cent from 26,880 in 2006. However, when you compare the first two quarters of 2007 with the same period in 2006, sales increased by 9 per cent in the City of Toronto and by 12 per cent in the 905 Region.
“The increase in listings we have seen in recent months has resulted in a slightly longer period during which homes are on the market, from 29 days a year ago to 34 days currently,” said Ms. O’Neill. “This has given buyers and sellers a little more time to make well-considered decisions.”
In certain pockets however, the pace of sales remained brisk this June. Brooklin (E19) experienced a 35 per cent increase in overall sales based on strong detached home transactions.
Burlington (W25) saw a 65 per cent increase in activity, driven by detached home transactions and even more robust attached/row house sales.
In Downtown East (C08), activity was up four per cent due to attached/row house and condominium apartment sales.
“We expect to see balanced market conditions continue in the coming months,” said Ms. O’Neill. “When you look at it from a long-term perspective real estate invariably provides stable returns.”
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Don’t Want to Pay Development Charges? Buy a Resale Home
May 23rd, 2008 Categories: Buying real estate, Durham Region, Real Estate
Recently there was an article in the News Advertiser that suggested that Durham Region was impacting house affordability because it charges a substantial amount to new home builders to cover the costs of putting in the services to the new homes being built. The development charges and taxes have now risen to about 20% of the new home price.
The developers are complaining. I would be complaining if the region had to put the cost of the new roads and sewers and sidewalks on to my tax bill instead of the developers. Someone has to pay.
Fast forward two to ten years, the development charges and taxes were paid by the new home buyer. They probably put up a fence; added some decorating details; maybe finished the basement. And now you get to buy it.
You don’t have to pay for any of that. They put $50,000 into their basement and you pay about 75% of that value. And they will probably throw in the appliances because they want to buy new ones for their new home.
Real estate agents have been shouting from the rooftops that buying a resale home has benefits, in spades, over buying new. For example:
- New home fix-ups that are often needed after the home settles, like nail-pops or cabinets shifting, has been completed.
- Fences are put up.
- Basements are finished.
- Appliances are often included.
- Light fixtures are often upgraded.
- Blinds and drapes are often included.
- Decorating details have been added to personalize the home.
- Landscaping has been done.
- Driveway paved.
- The development is winding down so the dust has settled.
Convinced. With new home starts down, and resale listings on the rise. Now might be the time to move up.
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New Homes: Top 10 Energy-Efficient Remodeling Projects for 2008
April 30th, 2008 Categories: Area interest, Green Building, Real Estate
by Dena Kouremetis
PATH (The Partnership for Advancing Technology in Housing) recently released its annual recommendations on the top remodeling technologies to make existing homes more durable, stronger and more resource efficient.
The top 10 technologies include:
1. Air Sealing: which include non-fiberglass batts, sprayed foam insulation, and sprayed fiber insulation are recommended because they improve the thermal resistance of exterior walls.
2. Smartvent Ventilation: This new mechanical ventilator system measures the moisture content of outdoor and crawlspace air and only provides ventilation when the outdoor air is drier than crawlspace air.
3. HVAC Sizing (Heating, Ventilation and Air Conditioning): estimating heating and air conditioning loads more accurately so properly sized HVAC systems are installed to ensure energy efficiency.
4. High Efficiency Toilets: Designed for water conservation, high efficiency toilets have been defined by the plumbing industry and the EPA as those that use an average of 20% less water per flush than the industry standard of 1.6 gallons. A high efficiency unit toilet can save up to 8,760 gallons of water each year for a family of four.
5. Compact Fluorescent Lighting: Compact fluorescent lamps (CFL), are simply miniature versions of full-size fluorescent lights, but four times more efficient and last up to 10 times longer than incandescent bulbs.
6. High Performance Windows: Window technology has evolved over the years to the point where windows can be selected not only for their aesthetic qualities, but also for their performance abilities.
7. Wireless Lighting and Thermostats: These controls can be set on timers or using a variety of sensors with wireless systems to increase home efficiency without sacrificing home owner comfort.
8. Solar Hot Water: Solar water heaters come in a variety of configurations but each differs in design, cost, performance and level of complexity. Most systems have back-up water heating such as electricity or gas.
9. Recycled/Renewable Flooring: The two types of environmentally-conscious flooring that lead the market are recycled flooring from old structures and renewable flooring from fast-growing trees, such as bamboo.
10. Tubular Skylights: Tubular skylights use the sun for lighting interiors without the drawbacks associated with conventional skylights. They are generally easier to install than typical skylights and, from the home’s interior, resemble conventional lighting fixtures.
For more information, visit the PATH website at pathnet.org.
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What We Can Learn From the U.S. Mortgage Fallout
April 25th, 2008 Categories: Area interest, Durham Region, Mortgage, Real Estate, Real Estate News
U.S. President George Bush recently announced a stop-gap (albeit limited) 
measure that may assist many U.S. homeowners from experiencing what millions already have – losing their homes. In light of the dilemma south of the border, what can we Canadians learn from all this, and how can we be better prepared to avoid similar devastating effects?
A brief history of U.S. home lending practices: it all started when credit was provided early in the 20th century after the Great Depression. Lenders first offered simple interest 80/20 short-term loans; 80 per cent down and 20 per cent financing. Then some ingenious private entrepreneurs and banks decided they could charge more interest by providing 50/50 loans over longer periods. They saw the opportunity to really make large returns on their investments. 50/50 soon became 80/20, with 20 per cent down and 80 per cent financed. After lobbyists pressed Congress, they eventually passed a law approving compound interest, not long after the Second World War when all the vets returned home.
Amortization schedules and pay-off times went from five and 10 years to 15, 20, 25, 30, 40 years and more. The banks capitalized enormously on these lending practices. Compound interest extended for as long as the gullible public would bear, and made the banks astronomically profitable. Initially they weren’t even sure if they could convince the general public to contract such huge long-term debt commitments. But untethered capitalism and the desire for “more than one could really afford” reigned supreme. Communities like Levittown (America’s first planned “assembly-line” subdivision in Long Island, N.Y.) were enormously successful. The groundwork for today’s real estate and mortgage template was cast.
People who really couldn’t afford the credit they desired were given loans at higher rates to counter balance higher gross-debt-ratios. Even those who didn’t qualify under normal circumstance could also live beyond their means through creative and exotic loans like
Adjustable Rate Mortgages (ARMs) and 40- or 50-year amortization periods. Therein lies the core-formula for millions of Americans losing what used to be their most valued and protected asset, their homes. The formula was to over-extend ourselves, live beyond our means or buy more than we could really afford, with funding provided by a lending system that understood high-risk, high-return and gladly participated. Lenders became ‘enablers’ for a public who acted like dope-crazed addicts, never able to satisfy their need for more of this euphoric drug – extended credit.
As long as equity in their investments continued to grow, they were safe. But when over-inflated house values soon began to deflate, they could no longer tap into the reservoir of ‘savings’ built into their homes.
After extending themselves even further with home equity loans, thus adding another monthly payment, the American public was trapped. They became unable and/or unwilling to continue to pay for homes that were worth less than what they owed on them, especially if it crimped their salacious appetite for a lifestyle they could no longer afford. The fallout became apparent to the lending institutions and they quickly lobbied Congress to make it harder for people to bail out through bankruptcy. To nobody’s surprise, the law was passed.
To date, Canada and Canadians have been spared, for the most part from the major fallout experienced in the U.S. Why? We have yet to lower our standards to the point of our neighbours to the south. But will we continue to hold higher standards – and for how long?
That’s the key.
So as a dual citizen who has lived and worked for equal years in the U.S. and Canada, I say, take heed. Be cautious. Real estate, though cyclical, is being influenced by new parameters that have to be weighed in the balance – including demographics and preferences of aging baby boomers, the economic impact of ever-increasing oil prices and the like. How can we protect ourselves? We can try to avoid extended amortization periods, exotic loans and creative financing; but most importantly, simply live within our means – an unpopular idea, but the undeniable truth.
Frank Kirschner, MBA has been licensed in real estate since 1982. He has held a variety of executive positions in the industry, including vice-president and director of operations for Prudential Real Estate Affiliates/Canada; broker/owner of Atlanta Buckhead Realty and executive vice-president, Prudential Sadie Moranis Realty. Email frank@atlantabuckheadrealty.com
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20 Low-Cost Ways to Spruce Up Your Pickering Village Home
January 28th, 2008 Categories: Buying real estate, Pickering Village, Real Estate, Selling real estate
Make your Pickering Village home more appealing for potential buyers, or for yourself, with these quick and easy tips.
- Trim bushes so they don’t block windows and cut down on light.
- Buy a new doormat.
- Put a pot of bright flowers (or a small evergreen in winter) on your porch.
- Put new doorknobs on your doors.
- Put a fresh coating on your driveway.
- Edge the grass around walks and trees.
- Keep your garden tools out of site.
- Be sure kids put away their toys.
- Buy a new mailbox.
- Upgrade the outside lighting.
- Use warm, incandescent light bulbs for a homey feel.
- Polish or replace your house numbers.
- Clean your gutters.
- Put out potpourri or burn scented candles.
- Buy new pillows for the sofa.
- Buy a flowering plant and put it in a window you pass by frequently.
- Make a centerpiece for your table with fruit or artificial flowers.
- Replace heavy curtains with sheer ones that let in more light.
- Buy new towels.
- Put a seasonal wreath on your door.
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“Green” Is The New Gold: 4 Ways To Renovate For The Environment
January 14th, 2008 Categories: Buying real estate, Real Estate, Real estate investment, Selling real estate
Canadian home buyers have said that they are willing to pay more for “green” features. New home builders are offering special “green” options in things like the selection of building materials and energy-efficient choices. If you are renovating your home, perhaps to sell, consider some environmentally-friendly alternatives:
- Out with the hardwood, in with the bamboo. Bamboo is considered a “green” choice because of its high yield in farming and quicker re-growth (than hardwood).
- And put the floor in with formaldehyde-free glue.
- Use “Green Seal” paint. Volatile organic compounds (VOCs)—they
just sound wrong to put on your walls—and other additives in conventional paint can have negative consequences on your health and the environment. Look for a green seal when you are re-painting. - Go with the low-flow. Low flow-shower heads and aerators save water without sacrificing water pressure. Low-flow toilets can reduce your water usage by almost half.
Environmentally-friendly features in your home could give you the competitive edge in any real estate market.
For more “green” tips, call me for a free report.
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8 Steps to Getting Your Finances in Order
January 10th, 2008 Categories: Buying real estate, Real Estate, Selling real estate
- Develop a family budget. Instead of budgeting what you’d like to spend, use
receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent. - Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 32 percent of income. Since this figure includes your mortgage, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down.
- Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. You’ll probably see some great ways to save.
- Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want.
- Save for a downpayment. Although it’s possible to get a mortgage with only 5 percent down—or even less in some cases—you can usually get a better rate and a lower overall cost if you put down more. Shoot for saving a 20 percent downpayment.
- Create a house fund. Don’t just plan on saving whatever’s
left toward a downpayment. Instead decide on a certain amount a month you want to save, then put it away as you pay your monthly bills. - Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate.
- Establish a good credit history. Get a credit card and make payments by the due date. Do the same for all your other bills. Pay off the entire balance promptly.
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Getting To “Open House Ready”
December 20th, 2007 Categories: Real Estate, Selling real estate
Preparing your house for selling can be a daunting and overwhelming task whether you have lived in your home a few years or many. The longer you have lived in your home the more things you will have acquired. The intent of this Top 10 Tips for Successful Home Staging is to help you save TIME, MONEY & ENERGY.
In preparing your house for selling you need to take a step back and have the mind set that this is no longer your home but your investment for your future. You want your home to have broad buyer appeal to your target market. Following these 10 Tips for Successful Home Staging will help you sell your house sooner and possibly for more money than if you did not prepare it for selling! Remember most people want to move into their new home without having to make updates to it.
- Curb Appeal – stand back and view your home as if you were seeing it for the first time. This is the ‘first impression’ stage. Depending on the season you may want to have pots of colourful and attractive flowers to greet buyers; a clean and inviting door mat; new and shiny door handles and/or knockers; a freshly painted door – black is my favourite colour!
- Declutter – start your pre-pack as soon as possible. You need to decide what you are going to keep, give away, sell or throw away/recycle. Many clients will rent storage lockers or have pods delivered so they can start to clear out what is not going to make the house look good.
- Clean – you would think this one is common sense but let me assure you, I wish it was so! A clean home translates into ‘They must have really cared for their home.” Use environmentally friendly cleaners where you can, for hard cleaning areas tsp is a good product. Bathrooms and kitchens must be sparkling clean at the very least.
- Depersonalize – we know you love your family photos and your personal treasures and for living they are perfect. For selling pack them up carefully so you can showcase them in your new home. For selling you want buyers to focus on the best features of your home and not your personal things or collections.
- A neutral colour scheme is the way to go for selling. Choose only 3 colours or less to paint your house for selling. If you have an open floor plan then paint the main floor all the same colour. Bedrooms look good in light sage greens or warm blues like the new aqua.
- Highlight your home’s best architectural features – place your furniture in each room so that you have very obvious focal points that show off the home’s best selling features. For example, if you have a beautiful fireplace then place the furniture in a parallel grouping so that the eye is drawn to the fireplace.
- Decide on the function in each room – if you were using your guest bedroom as your den for living, for selling turn it back into a bedroom with bedroom furniture in it. If you do not have the right furniture for each room consider renting it. There are more and more rental furnishing companies opening up every day. If you don’t want to rent then borrow.
- Lighting your home to its best advantage – spend money on new light fixtures in brushed nickel or stainless steel. Brass is out so don’t fight it. There are many low-cost lighting stores to select from so no excuses for having dated light fixtures.
- Window treatments that sell your home – the most popular on the market are the 2” faux woods in a white tone to go with your trim. Decorative side panels will do the trick if you n eed to add warmth and colour.
- Flooring needs special attention and is a good investment for updating the look of your home – tile or linoleum is great for entranceways, bathrooms, kitchens, laundry rooms; a good quality laminate or hardwood is perfect for living rooms and family rooms; bedrooms are attractive in a neutral carpet.
By planning and budgeting you can get yourself to the “OPEN HOUSE READY” stage.
Remember that over 79% of prospective buyers have already checked you out through the MLS listings. Will they like what they see?
Happy Selling!
Dana J. Smithers is a professional interior decorator, redesigner and home stager with a CRSS designation. As the owner of Sun On My Back Redesigns she operates a successful business and is a Professional CRDA Redesign & Home Staging instructor. Dana has appeared regularly on television, radio and has many published articles on Redesign & Home Staging. To receive your monthly tips from Sun On My Back Redesigns sign up for our eNewsletter at www.sunonmybackredesigns.com. Dana can be reached at 604.836.7174 or info@sunonmybackredsigns.com. Stay tuned for her new ebook series and her Handbook for Home Staging – Getting To Open House Ready! coming in 2008.
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Tips for Finding the Perfect Neighborhood
November 27th, 2007 Categories: Buying real estate, Real Estate, Real estate investment
The neighborhood you choose can have a big impact on your lifestyle—safety, available amenities, and convenience all play their part.
- Make a list of the activities—movies, health club, church—you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.
- Check out the school district. The school boards in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future.
- Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type—burglaries, armed robberies—and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?
- Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?
- See if you’ll make money. Ask me to get information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. I also may be able to tell you about planned developments or other changes in the neighborhood—like a new school or highway—that might affect value.
- See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there, and walk around. Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to
play with your family?
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A Prenuptial For Homes
November 23rd, 2007 Categories: Buying real estate, Real Estate, Real estate investment
Focusing on resale potential before you buy a property is a little like considering the terms of the divorce settlement before co
nsummating a marriage. Yet, this is precisely what savvy real estate investors do. They plan out their exit strategy before they negotiate a purchase. Home buyers who give consideration to resale potential before they buy can reduce their chances of losing money when they sell.
Location is often touted as the prime value indicator for real estate. This is because properties in the best locations appreciate more during good real estate markets and hold their value better during down markets. The community in which you buy will have an effect on your resale potential, as will market conditions at the time you sell.
There’s usually higher demand for properties that are located in areas where the public schools are good. Because of the demand, these communities tend to be the most expensive. When faced with the alternative of costly private schools, many prospective buyers would rather pay for a more expensive home where they can send their children to the public schools.
Buying in a community that’s on the upswing can result in a big payoff when you sell. These communities are usually located adjacent to more affluent communities that are beyond the price range of most buyers. Look for communities that are close to public transportation, and within a reasonable commute distance of a major metropolitan area.
Location within a community can also affect a property’s resale potential. Usually, homes that are on busy streets, or next to freeways, will sell for less than similar homes that are located on quiet side streets. Being located across the street from a school, which can be noisy, may also result in a discounted price.
Buyers pay more for homes that offer easy access into the main living area. An entry that is level in from the street is ideal. A garage that opens directly into the kitchen area is also desirable. On the other hand, homes that are located up or down a lot of stairs are a hassle for most buyers. An inconvenient access can have an adverse effect on value.
If you buy a home that has an incurable defect, like a busy location or too many stairs, make sure that you don’t overpay. There’s nothing you can do to remedy an incurable defect. It can also negatively impact the price when you decide to sell.
The best time to sell a home that has an incurable defect is when the market is strong and the inventory of homes for sale is low. This is when buyers are willing to make compromises for the sake of being able to buy at all.
In a slow, buyer’s market, where there are plenty of homes for sale, buyers will take their time. They can afford to be choosy. You’ll have to discount your price more in a buyer’s market in order to look attractive relative to the competition.
It’s a good idea before you buy a home to check the permit history on the property. Make sure that you’re not paying a premium for remodeling that was done without necessary building permits. In some communities, homeowners are penalized if the building department becomes aware of work done without permits. You could incur extra expenses that you hadn’t anticipated.
THE CLOSING: Deferred maintenance usually results in a lower sale price. Your best protection is to keep your home well maintained.
Dian Hymer is author of “House Hunting, The Take-Along Workbook for Home Buyers,” and “Starting Out, The Complete Home Buyer’s Guide,” Chronicle Books.
Copyright 2003 Dian Hymer
Distributed by Inman News Features
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