Housing sales report best June on record in Greater Toronto Area

Article below provided by The Globe and Mail

Home sales in the Greater Toronto Area have rebounded in a big way after a brutal slump, increasing nearly 30 per cent since last June and heralding the return of a seller's market.

The Toronto Real Estate Board reports that this was the best June on record, with 10,955 single-family homes sold last month, and the average price hitting $403,972 - up 2 per cent from the same month last year.

"A lot of places are getting multiple offers," said Toronto real-estate broker John Pasalis. "It definitely is a heated market right now." University professor Sharon Sliwinski has been house-hunting since mid-June and is already frustrated with the crowded market.

"There was a place in Leslieville I was speechless about, it was really great," Ms. Sliwinski said. "I was at the house and it wasn't even an open-house day, but there was a constant rotation of people coming through to see it."

When Ms. Sliwinski learned there were already six bids on the home, she didn't bother to put in her own offer. She also lost out on a house just north of High Park. "I even made a healthy offer of $25,000 over the asking price," Ms. Sliwinski said. "Anything that shows well is gone right away."

Mr. Pasalis said last fall's economic tailspin spooked many would-be home buyers, driving down December's home sales to just 2,577. But now, buyers are coming back to the market in droves, encouraged by low interest rates.

"I don't think anybody really expected the real-estate market in Toronto to turn around so quickly," Mr. Pasalis said.

Royal LePage real-estate broker Eugenia Evans said there are fewer deals to be had in the stronger market, but more buyers are looking to less-expensive areas like the Junction near Dundas and Keele.

There have been fewer homes for sale as owners waited for prices to bounce back, but Mr. Pasalis predicts more homeowners will opt to sell over the next few months.

"I think demand will go down significantly as we move into the fall," Mr. Pasalis said. Jason Mercer, a real-estate-board market analyst, says he expects the 416 and 905 areas to have comparable growth rates through the second half of the year, with Brampton and Toronto's condo-rich waterfront boasting the biggest sales numbers in June.

Real Estate Newsletter

In the midst of a global recession, the average national price of resale homes in Canada hit a record level in June, and sales activity increased for the fifth straight month.

There is no sign of slowing down in July.

In this edition of New Featured Listing, I would like to introduce a true Hard Loft located at the West-end Toronto.

What is a "hard" loft ?

A true loft is a conversion of a vintage factory or warehouse. They have a harder edge as they are usually constructed of concrete or "mill" construction of exposed brick, original wood posts, beams and floors. Typically, these lofts have an open floorplan and unfinished ceilings that are at least 10' high with exposed ducts, plumbing and electrical.

New Featured Listing – Foundry Loft

Back in the early 1900s, Canada Foundry Co. Ltd. built and supplied locomotives for railways across Canada. Today, the rich history of this company and the Great Canadian Railway is kept alive with the restoration and conversion of the warehouse into 104 hard lofts in Toronto. A typical 2 bedroom 2 bathroom 2 level suite at Foundry Loft asking price is $365,000 plus $20,000 for underground parking. The loft size is about 1170 sq ft. Click on the link above to check out the pictures of the atrium as well. It is quite spectacular.

Just Sold – This beautiful historical townhome conversion at 358-368 Dundas Street East, Toronto was featured in last newsletter.

Just Leased - Forest Hill 2 bedroom condo apartment

Just Leased - Bachelor Suite at The Met

Just Leased – 1 bedroom plus den Suite at The Verve

Mortgage Tips:

The Term of a mortgage is the number of years or months over which you pay a specified interest rate. Terms usually range from six months to 10 years, and choosing the right term is critical to satisfying your financial expectations.

When you're looking at term and interest rates keep in mind that trying to predict where interest rates are going is a tough job for anyone since there are many factors that affect Canadian interest rates - economic, political, domestic, and international. Even the best economists cannot pinpoint this, so basing your decision on predicting where rates will be 3 or 5 years from now (when your term expires and you need to renew your mortgage) is very speculative.

Instead, your decision should be based on how much you can afford, and how long you feel comfortable committing to that payment. You may decide that your ability to pay is flexible, and that you would like to take advantage of the lower rates that come with today's variable rate terms. Otherwise, you may decide that you can afford a slightly higher payment, but that you want it to be stable for a longer fixed rate term.

Keep in mind that longer terms do not necessarily imply lower rates at renewal time, so be sure to review rates associated with different terms with your mortgage professional.

This issue of Mortgage Tips is provided by Steve Weber, Mortgage Agent of Centrum One Financial Group Inc.

Please email Steve at steve@expertmortgage.ca or visit the website at www.xpertmortgage.ca

Weekly Newsletter

Real Estate News:

It is amazing how our real estate market switched from literally no buyers to no sellers in months. The line-up at the concierge desk to access the unit is not unusual. Houses are sold firm within days. Most purchasers cannot afford to put a home inspection condition clause in their offiers. What is going on with our market?

June 17, 2009 -- Greater Toronto REALTORS® reported 5,185 transactions in the first half of June – an increase of 19 per cent compared to the same period last year. "Households in the GTA have become more confident in purchasing a home over the past three months," said TREB President Maureen O'Neill. "Affordability, due in part to very low borrowing costs, has played a key role."

New Featured Home: Brownstone Historical Conversion

358 -368 Dundas Street East, Cabbage Town, Toronto

The Cabbagetown neighbourhood was once described by the New York Times as "containing the largest collection of Victorian homes in North America". Cabbagetown's houses were built between 1860 and 1895. Most of these houses have been lovingly restored under the watchful eye of the Cabbagetown Preservation Association. The Association ensures that all renovations and new developments are in keeping with this historical neighbourhood.

358-368 Dundas Street East is a New York Style Brownstone Historical Conversion Co-ownership Complex. While the builder is meticulously restoring the façade of the building, the interior of the townhome is newly renovated including electrical and plumbing. The upper units are 2 bedroom and 2 bathroom with private decks on each level. On the main level, there is a grandfathered wood burning fireplace at the living room, and a 2pcs powder room. The kitchen is customized by purchasers with the pre-selected choices of material and appliances from builder. Any upgrades are available with an additional cost. Upper deck walkout from the master bedroom with large closet. Additional skylights can be installed at purchasers' cost with the heritage council's permission. Here is the Floor Plan.

Mortgage News:

Those of you watching the benchmark 5 year fixed rates may have noticed some significant increases in the last several weeks to 4.34%. Fortunately, there are options for those in need of mortgage financing in the form of a variable rate or a shorter term fixed rate mortgage.

Currently, the 5 year variable rate is 2.65%, which represents a significant savings from the current 5 year fixed rate. For clients that can tolerate the possibility that their mortgage rate will fluctuate, this is a viable option.

For clients that do not wish to tolerate fluctuations in their regular payments, 3 year fixed rate terms are now available at 3.55%, which still represents a significant saving from the 5 year rate, while offering the confidence of a fixed mortgage payment.

* Rates are based on the most current lender information and may vary based on individual circumstances. Rates are subject to change without notice.

This issue of Mortgage News is provided by Steve Weber, Mortgage Agent of Centrum One Financial Group Inc.

Please email Steve at steve@expertmortgage.ca or visit the website at www.xpertmortgage.ca

That's all for this week. Have yourself a wonderful weekend!