Warm weather brings an early start to 2012 Home Sales

Posted on January 17, 2012 by David Pylyp

We are starting a New Year with Resolutions and Optimism! And an price increase of 8.5% averaged over last year.

The first real estate post that I notice is that “the eventual increase in interest rates will lead to a decline in home prices (probably in the magnitude of 10% – 15%)”
The ink was barely cold on the presses when the pundits were howling about interest rate increases. When the Bank of Canada announced only 3 days earlier.

TORONTO, January 17, 2012 – Greater Toronto REALTORS® reported 1,506 sales through the TorontoMLS® system during the first two weeks of January 2012. This result represented a six per cent increase compared to the first 14 days of January 2011. New listings were also up on a year-over-year basis, but by a lesser 3.7 per cent.

“The market didn’t miss a beat after the holiday season, with robust sales growth continuing and sellers’ market conditions remaining in place. Strong competition between buyers continued to push the average selling price higher in the Greater Toronto Area relative to a year ago,” said Toronto Real Estate Board (TREB) President.

The average selling price during the first two weeks of 2012 was $444,473 – up by more than 8.5 per cent compared to the same period in 2011.

“Prices were up for most major home categories in the GTA in comparison to last year. The strongest price growth was for single-detached homes in the City of Toronto. The average price of singles in the 416 area code was up by 22 per cent year-over-year, pointing to a greater weighting of higher end detached homes changing hands compared to the same time last year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

http://www.torontorealestateboard.com/market_news/release_market_updates/news2012/nr_mid_month_0112.htm

So here we are the start of a new sales year. Interest rates appear to be stable for the remainder of 2012. Inventory [available homes for sale] continue to be in short supply with the inevitable multiple offers when more than one buyer wants the same house.

Many of the pundits are talking about construction cranes and the inevitable lack of  occupants for these newly constructed properties. Now lets add the one variable that no one is discussing;

The vacancy factor for Toronto rentals is very competitive. The Vacancy Rate appears to be around 1%. ONE percent. Rentals in high rise condo average $1,600 to $2,000 for a two bed two bath unit at Humber Bay Shore or Square One Mississauga

All of this may indeed be for only a limited time as demand may cause the rates to increase because of borrowing demand. Call now and let’s beat the rush! Would you like an OPINION of Value on your place?

What do you think? Add your comments.

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What do you predict for 2012 in Toronto?

Posted on December 29, 2011 by David Pylyp
events What do you predict for 2012 in Toronto?

Forecast for 2012 Real Estate Toronto

Will we have the sky rocketing interest rates? Will the Toronto Condo Bubble Burst? How is our unemployment rate?

The global scandals and economic meltdown of entire nations was not shared by Canadians.
The Canadian housing market has demonstrated tremendous resilience in recent years, but 2011 stands out. Instead of responding to economic concerns both here and abroad with a retreat in sales and prices, residential real estate markets actually experienced an upswing in the volatile third and final quarters. While clearly not impervious to the impact, Canadian consumers are intent on making their moves now, in advance of higher housing values and rising interest rates down the road. Canadians continue to buy houses.
Improvement in both provincial and local economies, is required; The increased deficit in Ontario resulted in a downgrade in Ontario’s economic outlook, Rob Ford’s first year in office has been acrimonious, especially during the second half of 2011, yet Toronto real estate values continue to defy logic with a projected increase of five per cent in 12.
The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further. 7.9% in Toronto. Nationally, we remain on an upward track, and the confidence consumers have demonstrated in housing over the past decade will prove well founded once again next year. The rising belief in homeownership is key, especially among Generation X and Y—some of whom are making their moves sooner. Boomers and retirees are changing, too. They’re healthier and more active, with longer life expectancy. Overall, we’re seeing an extension of the homeownership cycle, and it’s great news for housing.
What happened to Freedom 55? A Statscan study doesn’t speculate as to why we are seeing such a significant trend towards delaying retirement, but polls and opinion surveys provide some answers. For example, a Harris/Decima poll conducted for Scotiabank and released in earlier this year found that more than two-thirds of respondents said they plan to keep working after reaching retirement age. Of these, 38 per cent will do so because they won’t have enough money to live on. Another survey, this one for TD Waterhouse, discovered that 67 per cent of baby boomers are worried they won’t have enough money to retire, while only 15 per cent feel comfortable about their situation.
While tighter supply levels contribute to steady price appreciation in most major markets across Canada this year, Toronto is approaching 90 thousand units. Condo sales will now account for almost 40% of all units sold.
With houses popping on the market resulting in immediate multiple offers, We are hopeful for an increase in inventory more in line with years previous that should ease upward pressure on average price in the year ahead, but those in the mature market with homes in desirable neighourhoods are holding onto their homes longer…
If you are considering a move this year Call me… and allow me to demonstrate what I do for you. 647 218 2414
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Will your condo fees increase in 2012?

Posted on December 3, 2011 by David Pylyp

Will your condo fees increase in 2012?
When we purchased this unit facing Lake Ontario we were assured that the maintenance fees would be minimal based on the services and amenities available within the building. Each unit is separately metered for individual power consumption. (Remember that extra $200 create new account charge from Hydro ** Don’t forget to call and get your deposit back)

The Marketing Materials in 2007 indicated that the proposed occupancy fees would be between 37 and 43 cents per square foot and this would be stable because separate meter and efficiencies of being a new structure. Concrete Slab construction with Glass Exteriors is the preferred method of construction both for speed, efficiency and thermal savings. Most Condominium and Office towers in Toronto employ this method of construction. Most of the Toronto Condos and Humber Bay Shore employ this design to maximize the window size if not floor to ceiling glass.
Move in- the adjusted budget proposed from the builder to the management company the fees were re evaluated to 54 cents per square foot. [This in itself was a 35% increase - proposed at 40 now 54 ] Are these revision sufficient to offset the HYDRO increases, and water and sewer charges that have changed in
During the first actual year of operation a Condominium Building must accomplish a number of items. (and prior to the end of 12 months)
  • Performance Audit of Construction*
  • Tarion Warranty Submissions*
  • Reserve Fund Study*
Contracts entered into by the Builder / Developer have resulted in acrimony and lawsuits between the two parties. This resulted in case law and legislation that prevents the Developer from giving his cousin “SAM” a sweetheart deal for the landscaping garbage cable etc.
After almost a full year of operation the new Budget is Proposed and now you are at 62.5 cents per square foot. That is a large and unexpected increase from the foretold expense only 3 years ago. Where are the individual line items that have skyrocketed? Some expenses are one time only, others are building cleaning, interiors and exterior glass; heat pump ventilation cleaning and filter replacements, but largest of all are the service contracts required for all your mechanical systems.
How have the maintenance fees in your building changed over the last few years?
When you moved in to when they had their first operating year was the increase expected?
Is the glass and concrete building method falling out of favour?
*1. Performance Audit is an independent review by the engineering firm you hire to read and interpret all the shop drawings and blueprints to verify that what you commited to as a purchase was delivered. The Audit goes on to test the quality of materials and construction to calculate the component’s remaining economic life.
*2. Tarion Warranty is the home builders warranty program that all builders must belong to. Provides a mediation and compliance for the builder to complete or Tarion contracts to make the repairs itself. Every builder in Ontario is (should be) a Tarion Member.
*3. Reserve Fund Study The condominium corporation establishes a Reserve Fund Study within the year following the registration, and periodic planning to determine whether the amount of money in the reserve fund and the amount of contributions collected by the corporation are adequate to provide for the expected costs of major repair and replacement of the common elements and assets of the corporation.
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The Bull or the Bear for 2012

Posted on November 25, 2011 by David Pylyp
What is your plan for 2012…   Have you talked about what to do?  Will you economize or spend heartily through this Christmas season?
Are the interest rates even an issue given that they will hold firm at 2.0% +/- Var and 3.15% F?
I was watching the coverage of the Black Friday shopping line ups and cross border time delays and thought, so many, taking a day off to shop for bargains, yet there seem to be so many sales here in Mississauga and Toronto.
The Apple store is always busy  So lets take that one out of the equation, but, our own Rodeo Drive in Mississauga and the Big Box Stores that surround Mavis and Brittania, Brittania at McLaughlan is always busy.
The cranes around Toronto and Mississauga indicate the confidence others have in our economy, academia, business and long term growth.  We continue to be a destination for cash, safe haven for the tired and oppressed and even our own citizens that made claims #occupyToronto of Corporate Greed and Tyranny.  Yet it’s those very same corporations that employ the majority of the work force.   So lets strip a few issues further down and we come to the issue of Affordable Housing.  This is indeed being addressed with Bill 140 and  the Affordable Housing Act 2011  that comes into effect Jan 1st 2012.
Why is no one discussing this.  I have emailed a few reporters but they seem more interested to paraphrase a news release than research a story.
Are you house shopping in 2012?  New updated PRE Listing Kits are available if you are screening agents to represent your property next year. Accordingly I have also updated the Buyer Home Purchase Packages for Toronto and Mississauga;  You need merely to call or email and I ‘ll get one to you.
Our own situation is a little different.  We may be graced with a job lock out at the City of Toronto, and my BFF may become my Assistant instead.  This lockout will cause financial drain to many families notwithstanding the impact to City Services. In favour or against is academic. The reality is budgeting cashflow.  The City needs to balance its budgets as household’s do.
Our Festivities this year might be modest because of the uncertainty of next years income;  I do not relish the Rob Ford’s lump of Coal in my Christmas Stocking.
How are you planning for 2012?
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Barry Lebow disses the SPIS

Posted on November 11, 2011 by David Pylyp

Very proud to have some of my content for Toronto Real Estate and the Seller’s Disclosure (SPIS) picked up by Bob Aaron and the Toronto Star. Yourhome.ca article posted here;

 

Few real estate experts know more about the Ontario disclosure statement than Barry Lebow, who has testified as an expert witness in as many as 600 trials involving real estate issues.

In a video Lebow posted on YouTube, this question was posed to him: If a client asked you “should I or should I not sign a Seller Property Information Statement,” what would your definitive answer be? Lebow’s one-word response: No.

In the same video, Lebow says, “If I had my choice there would only be four questions on an SPIS form.”

Lebow’s suggested questions for sellers to answer are:

• Is there anything in your home that you are aware of that could negatively affect my buying decision?

• Is there anything on or below the surface of your land that could negatively impact my buying decision?

• Is there anything within the neighbourhood either in place or pending that could negatively affect my buying decision? Lebow explained the concerns referred to in this question would be issues like whether a pedophile lives in the neighbourhood, or whether there are any area plans for new developments like a new highway, airport runway or recycling plant.

• Is there anything about your house that would prevent me from getting a mortgage or insurance?

http://www.yourhome.ca/homes/realestate/article/1084308–aaron-manitoba-simplifies-seller-disclose-form

 

Using these four simple questions during a listing presentation [Seller Interview] solves a myriad of issues that can impede a Buyer from obtaining a mortgage; simple issues like water and electricity nullify an Occupancy Permit. Maybe its the additional cost of removing all the knob and tube wiring. If you can’t live in it, you can’t finance the purchase. If you can’t get insurance you cannot get a mortgage.

Link to Video http://www.youtube.com/watch?v=CAxRlCZWa I am personally pleased that we are finally making a stand on a document that was poorly crafted and hoisted upon unsophisticated. Thank you to Bob Aaron and Barry Lebow for your influence.
Would you answer those four questions?
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Toronto is the [condo] Capital of North America

Posted on October 5, 2011 by David Pylyp

There are currently 132 highrise buildings under construction in Toronto, according to the figures. Mexico City ranks a distant second with 88 and New York City is in third with 86. The field drops off dramatically after that: fourth-ranking Chicago is building 17 highrises, while Miami rounds out the top five with 16.

Emporis defines a highrise building as between 35 and 100 metres high, or 12 to 40 floors. Buildings taller than that are considered skyscrapers.

Toronto already has the second-highest number of completed highrises and skyscrapers in North America, with 1,875 — just ahead of Mexico City and Chicago — according to Emporis. They all trail runaway leader New York City by more than 4,000, however.

PHOTO GALLERY: TORONTO’S DRAMATICALLY CHANGING SKYLINE SINCE 1919

 

Continuing with this article, while some are already screaming about a condo bubble and over building an already overheated market; the Star article goes on to add…

There is little fear among industry experts that Toronto construction is outstripping demand, despite Bank of Canada Governor Mark Carney’s warning about a national condo price bubble back in June. In fact, some are worried about the opposite.

There are more than 39,000 condo units under construction in the region, according to Myers — “and 88 per cent of those are already sold.”

A further 118 buildings are in pre-construction, he said, and three-quarters of those are sold. “We’re just continually getting larger and larger and larger.”

 

So lets recap;

Every crane you see is a SOLD OUT condominium project that achieved Financial Viability and Critical Mass to proceed. Each unit has paid a lot levy [Building Permit] Each unit has a 15% downpayment prepaid and held by an at arms length third party [keeping your money secure]. The Banks then lend based on the contracts in hand to complete the construction.
Unemployment less than 8% 27% of the jobs are in Financial Services and Insurance. Schools and Universities are world class. 57% of all immigration to Canada finds a home in teh Golden Horseshoe – 40% of all the immigration pools into the Toronto CMA.
Banks in Canada are secure and a safe haven compared with other countries. Your appreciation in the asset you live in is growing tax free from Capital Gains.
What other reasons would you buy for in Toronto?


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If your Condo Board is not allowed to Borrow – How did this happen?

Posted on September 26, 2011 by David Pylyp

When you found out…. They are already gone. In the papers they call it an alleged Misappropriation of funds. It’s a theft. A well planned and choreographed theft with many players. It needed multiple players to turn a blind eye or an ignorant eye to the theft. Who would you like to blame? Here’s the background.

 

The total misappropriation may top $20 million. Several buildings have filed civil suits against Channel and Khan, who is thought to have fled the country. Police are investigating.

Some condo corporations allege Khan forged signatures and created fake meeting minutes to register a bylaw that allowed him to obtain loans without the board’s knowledge. The money was funnelled into a separate bank account.

Residents in some buildings across Greater Toronto are now on the hook for these outstanding loans, while others are talking with insurance companies and lenders to figure out who must foot the bill.

Whether condo owners will be left to cover the costs depends on the details, said real estate lawyer Ray Mikkola of law firm Pallet Valo.

“Where the management agreements specifically authorized the manager to bind the corporation, and if the board could have detected the fraud but recklessly or negligently failed to do so, or if the corporation benefitted from some of the money. . . the corporation may be in trouble,” Mikkola said.

The condominium owners were [allegedly] defrauded. BUT:
Does the law firm that represented and permitted the placement of mortgages on the title of these individual buildings have liability and culpability in the indebtedness of their clients? They met with somebody, they prepared, investigated and crafted minute books; recorded the history of condo meetings, reviewed notes and minutes of Board Meetings to verify that indeed their client was entitled and enabled to borrow funds and in debt the condo corporation. The law firm acting for the lender had an obligation and gave an opinion that the mortgage registration was valid, Title was good and they had valid executed documents. Why do I say their clients? Their CLIENT is the individual condominium corporation.
The Loan committee, OFFICER, Manager of whatever Financial Institution [BANK] should be responsible [remember proportional liability?] for their lack of due diligence to investigate the legitimate need and authority of a single individual to produce a packaged loan application. I would like to see that performance review.
When you purchased your condominium unit, you also purchased Title Insurance. Title Insurance has some provisions for title fraud. I cannot obtain a definitive answer other than the questions I have asked are being taken under advisement.
Your Home Insurance Policy may participate in a claim for theft against something of value in your condominium. Both independent Brokers I inquired with believe there could be merit in a claim. Neither wish to be on the record.
The Condominium Status Certificate that you relied on at closing was false and misleading as to the correct financial picture of the building. Will you sue your lawyer who gave his/her blessing on your Condo Status Certificate? Now the Law Society Levy on each transaction is also included.
What will you do now?   What should happen?
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Can you provide housing Solutions?

Posted on August 30, 2011 by David Pylyp
I’d like to talk to you today about finding solutions for the things that you need in your life. Let’s not talk about excuses; or let’s not get hung up on circumstances or the details. Let’s find a way to help you do what you need to do.
First, let’s talk about where we are in the market with Toronto Real Estate. We are about 1 percent off of last years pace. We are going to hit it by year end. The number of sales is almost the same as last year.
The prices, year over year, averaging now $525,000 for a detached house are about 10 percent higher than where we were last year. Sales will still occur going into the fall. There is a lack of inventory.
This lack of inventory is causing 10 and 15 percent increases in prices in the more desireable neigbourhoods like Markland Wood, Lorne Park, Watercolours, and Central Etobicoke, The better neighbourhoods, in the west end of Toronto.
So lets deal with these issues and how they might apply to you. With fall in the air, and a little cooler temperatures, you’re going to be inside now for the winter. You have to decide if its the right time for you to sell. The market is buoyant, the times are hot, We can get you a good dollar for your house or unit. So first off…. Is the timing right for you to sell?
Secondly, you need to find someone who is an ASA Accredited Senior Agent who is working specifically in your neighbourhood in Etobicoke, West Toronto, South Mississauga, that can promote your home for sale, get you found on the internet, something other than the newspapers, yellow pages that don’t work for us anymore.
Third and lastly, is my favourite. Pricing your home Properly for sale. It has to be priced based on the market evaluation, that’s done on the historic values, trying to achieve those levels, not setting new ground. Pricing it too low will/may get you multiple offers, that may not neccessarily close. Your property may not appraise. [The Buyers] They may not get financed. You need to have your house sold and with homes selling in an average of 22 days on the market, being well priced will get you a sale, only a few hundred homes at every calender month end actually turn over and expire.
If you would like some experienced, informative and creative marketing to help sell your home, if you need to look after Mom or Dad’s place for transition management, Give me a call at 647 218 2414. Call Now
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Toronto Real Estate resists Bully Offers

Posted on August 28, 2011 by David Pylyp
Bully Bully Bully Offers in the Toronto Real Estate Market
There is the school yard bully. Remember those taunts in school?
The same thing is happening in Toronto real estate. Some homes in desireable neighbourhoods are resulting in multiple offers. People would like to jump the que and pay above the asking price with what they call Bully Offers. Take my Offer Now! You may not have a chance later.

David Pylyp Bully Offers Toronto Real Estate

The reality is; in real estate there is always going to be another house or condo coming along. There are very much demand neighbourhoods, and demand houses, don’t get caught up in the jump of the property. Take your time and buy prudently. It is a long term investment.

Your property needs to appraise for the purchase price or you are not going to get a mortgage. If you have 20% down, you cannot offer 25% over market value. Banks are doing strict appraisals based on what has sold. In my 23 years of real estate I have only had two that purchased for cash.
If you’re going to be buying a property, you need to avoid these situations by shopping carefully, present a strategy, do a CMA (Comparative Market Analysis) on the property you would like to negotiate for. Sometimes, when the appointed offer date comes, there are no multiple offers at all. You might want to prepare one or two offers, just for that event, One if we are alone, Another if we are competing. Then you tell me what to do, or you might like to prepare an offer that says I’ll pay you $500 more than the top offer. Then we get to see them all that are on the table.
If you would like to deal with someone with experience, panache, creativity and a bit of patience to work with you to find you that perfect property, in west Toronto, then give me a call at 647 218 2414
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Lets share my commission

Posted on August 15, 2011 by David Pylyp

Lets talk about giving you cash back on your Toronto home purchase

Everyday we are bombarded by countless offers from a wide variety of business. And if those businesses are online, they may be selling lots of sizzle. I have seen amazing claims, garish campaigns, ads and other marketing tactics selling shiny, glossy, exciting, fabulous things where it was clear that the majority of the attention was put on the sizzle.

Commission back on your Toronto house purchase

Sizzle may land you a customer once, but if you don’t have the steak, those buyers don’t come back and they won’t tell anyone else to come back with them. Or even worse, they will tell their network of people that you are all talk and no action.

Let’s talk about buying houses, I provide an unmatched level of attention to detail and service when buying a home. Can I prove it. Sure! I have video testimonials on line. Past clients you can call.

But what about people who are giving you cash back to gain new clients.

Just So I understand … You feel that a kick back of 15 hundred or 2 thousand is a huge amount towards closing and moving. I get it. But I can get you a mortgage at 2.2% for 5 years through my financial sources, that will probably save you $400 per month thru the next 60 mortgage payments.

So…. get 1500 now? or get $24,000 a bit every month.

While the US market is still soft with excess inventory, interest rates will be flat for the next two years. Toronto continues with fewer homes available and more bidding wars. We are a safe haven for families, business and money. The Ontario Golden Horse will continue to grow.

So, If you are looking for a property in the next few months, maybe its time to call an Accredited Senior Agent. Experience does have value. Hire someone who is persistent in getting things done

You can reach me at 647 218 2414 or email David@DavidPylyp.com

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