September 28, 2008
Luxury home sales holding steady
Upper-end home sales have outperformed virtually all other residential price points this year, but activity in the top-end of the market is expected to taper in most major Canadian centres in coming months, according to a report by RE/MAX.
The RE/MAX Upper-End Report, which highlights trends and developments in 15 housing markets across the country for the first seven months of 2008 found Vancouver, Victoria, Regina, Saskatoon, Winnipeg, London, Kitchener-Waterloo, Ottawa, Halifax-Dartmouth, and St. John’s all experienced an upswing in sales activity, while declines were noted in Kelowna, Calgary, Edmonton, Hamilton-Burlington, and Toronto. Also significant is in all but two markets, percentage increases in sales were greatest in the upper-end when compared to the overall residential marketplace in 2008.
Given the transition occurring in most residential real estate markets, upper-end sales remain exceptionally strong,” says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “The market for luxury homes is usually the first to show pressure cracks, but the reverse is actually true this year, with pent-up demand (due to trade-up activity), less speculation, and job transfers all factors contributing to stability in this segment. That being said, we feel uncertainty in financial markets both here and abroad will give purchasers cause for concern in the immediate future.”
Although the top-end of the market represents less than five per cent of total sales, activity is generally a gauge of overall market conditions. Leading the country in terms of percentage increase in luxury home sales are Regina (up 306 per cent); Winnipeg (up 89 per cent); St. John’s ( up 78 per cent); Saskatoon (up 72 per cent); Kitchener-Waterloo (up 47 per cent); Ottawa (up 36 per cent); Halifax-Dartmouth (up 20 per cent); London (up 14 per cent); Greater Vancouver (up five per cent); and Victoria (up four per cent). Solid performance is likely a result of consumer confidence, particularly in provinces like Saskatchewan, Manitoba, Newfoundland, Nova Scotia, and parts of Ontario where solid economic fundamentals helped to bolster the number of homes sold in the upper-end.
“In two-thirds of the markets we surveyed, demand for upscale homes surpassed peak levels reported last year,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “However, with supply edging higher in most major centres and few markets reporting tight inventory levels, we are seeing a return to more balanced conditions. This situation is expected to have an impact on high-end values in coming months, especially in areas that have experienced consistent double-digit growth.”
The RE/MAX Upper-End Report also notes serious appreciation in housing values in recent years has pushed upper-end price points to new levels. This is especially so in Western Canada where $2 million is now merely a starting price in Greater Vancouver, while in the tony Westside, that figure is closer to $4 million. Calgary is steady at $1 million this year, but is pushing closer to the $1.5 million benchmark. In Ottawa, where the upper-end price point is currently pegged at $750,000, sales are increasingly occurring over the $1 million mark.
Other highlights include:
• The most expensive MLS sale in Canada in 2008 occurred in Greater Vancouver with a sticker price of $11.5 million. A property priced at $9 million in Greater Toronto sold in a multiple offer situation for more than $11 million as well.
• The priciest condominium currently listed for sale on MLS is priced at $14.8 million in Greater Vancouver – reduced from $18 million earlier this year.
• The Four Seasons Hotel, currently under construction in Greater Toronto’s Yorkville area, has the most expensive list price in the country — $30 million for a penthouse suite on the 55th floor.
September 9, 2008
Dealing With Dual Real Estate Agents
Be sure the exact nature of your relationship with a dual agent is clear.
Historically, real estate agents have represented the seller of a property. The seller, after all, is usually the one who pays their commission, and agents therefore have a fiduciary relationship with the seller. This in no way means that agents may operate outside the bounds of the law, regulation and ethical conduct. It just means that the real estate agent is just that, an authorized agent of the seller for a particular transaction.
More recent trends have introduced buyer’s agents, who usually work exclusively for the buyer, and dual agents. Dual agents represent both seller and buyer, particularly in cases where the agent’s company is the listing company. Dual agency is legal in Ontario (officially called Multipule Representaion) however, most consumer advocacy organizations recommend against using a dual agent. This is because there is an inherit conflict of interest for the agent – they receive a commission based on the selling price of the property. The higher the price, the higher their commission, so their reasoning is that dual agents never really have the buyer’s best interests at heart.
If you’ve decided to work with a dual agent, this will need to be disclosed to both the buyer and seller, and they both have to agree, in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, equally, and fairly. Dual agents can be prevented from divulging confidential information about each party to the other as that practice could severely harm negotiating positions.
The bottom line in dealing with a dual agent is to remember that the buyer and seller have conflicting interests in the price and other terms of the sale. It’s very difficult for an agent to truly and equally represent both parties, since the conflicting interests make that inherently impossible. If you do choose to use a dual agent, be sure the exact nature of your relationship with the dual agent is clear, know what services the agent will be performing for you during the transaction, how the agent will be paid, and how any conflicts that arise will be handled.
September 6, 2008
Warmth And Convenience At Its Best
A corner gas fireplace can be a great solution to those brutally cold days of winter.
When the months of November to February come around, staying warm can sometimes be difficult. Think of having a fireplace is more of a necessity than a luxury. Here is a look at how a corner gas fireplace may be the solution you’re looking for in staying warm this year.
While most people are very familiar with a standard wood burning fireplace or wood stove, a lot of people don’t realize the benefits a corner gas fireplace can provide. Not only will it keep you and your family warm from those freezing temperatures outside, but the convenience is hard to beat as well.
Gas fireplaces really don’t require a lot of upkeep in the sense that they do not burn wood, so there is no mess with ashes in the firebox all the time. You will not be chopping your own wood or having it delivered. There is no stacking and carrying it inside all the time. You simply turn up the gas and you have an instant fire providing a warm relaxing glow.
If you live in an area where there are no gas lines or it would be extremely difficult to set up, you can always use propane as an alternate fuel. Propane fireplaces are becoming quite common for people in these types ofcircumstances.
There is no substitute for the warmth and ambience that only a fireplace can provide. Whether it be alone reading a book or sitting around the fire with family or friends, a fireplace is one of life’s great pleasures.
If you are considering adding a new fireplace in your home you may want to take a closer look at this type of gas fireplace. You can find many websites online that specialize in this type of fireplace that have catalogs and pictures that show you all of the different styles.
By choosing gas instead of wood will give you all the benefits of a wood burning fireplace without all of the mess. It’s convenience at its best. So stay warm this winter season with a corner gas fireplace.
A corner gas fireplace can be a great solution to those brutally cold days of winter. When the months of November to February come around, staying warm can sometimes be difficult. Think of having a fireplace is more of a necessity than a luxury. Here is a look at how a corner gas fireplace may be the solution you’re looking for in staying warm this year.
While most people are very familiar with a standard wood burning fireplace or wood stove, a lot of people don’t realize the benefits a corner gas fireplace can provide. Not only will it keep you and your family warm from those freezing temperatures outside, but the convenience is hard to beat as well.
Gas fireplaces really don’t require a lot of upkeep in the sense that they do not burn wood, so there is no mess with ashes in the firebox all the time. You will not be chopping your own wood or having it delivered. There is no stacking and carrying it inside all the time. You simply turn up the gas and you have an instant fire providing a warm relaxing glow.
If you live in an area where there are no gas lines or it would be extremely difficult to set up, you can always use propane as an alternate fuel. Propane fireplaces are becoming quite common for people in these types of circumstances.
There is no substitute for the warmth and ambience that only a fireplace can provide. Whether it be alone reading a book or sitting around the fire with family or friends, a fireplace is one of life’s great pleasures.
If you are considering adding a new fireplace in your home you may want to take a closer look at this type of gas fireplace. You can find many websites online that specialize in this type of fireplace that have catalogs and pictures that show you all of the different styles.
By choosing gas instead of wood will give you all the benefits of a wood burning fireplace without all of the mess. It’s convenience at its best. So stay warm this winter season with a corner gas fireplace.
Source: Northern Pine Improvements
September 4, 2008
GTA Resale Housing Remains Steady
The Greater Toronto resale housing market closed out the last full month of summer at a steady pace, Toronto Real Estate Board President Maureen O’Neill reported today. The Greater Toronto Area (GTA) average price increased one per cent, to $364,886 when compared to last August’s figure of $361,890. Compared to the $338,192 figure recorded two years ago though, the average GTA has increased eight per cent.
In the City of Toronto the average price declined one per cent to $377,990 from last August’s $381,681. Compared to the August 2006 figure of $344,419 however, the average price in the City of Toronto has increased 10 per cent.
In the 905 Region the average price increased two per cent to $356,657 from last August’s $348,563. Compared to the August 2006 figure of $334,245 the average price in the 905 Region has increased seven per cent.
“These healthy figures substantiate that when undertaken as a long term investment, buying a home is one of the smartest financial moves you can make,” said Ms. O’Neill.
With 6,318 transactions recorded last month, sales in the GTA declined 22 per cent compared to the record August 2007 figure of 8,059. Volumes were off just nine per cent however, from the 6,976 sales recorded in August 2006.
In the City of Toronto, there were 2,437 sales in August, a 25 per cent decline from the 3,243 transactions recorded a year ago.
Compared to the 2,706 sales recorded in August 2006 though, this represents a 10 per cent decline. Sales increased 20 per cent between August 2006 and August 2007.
The 905 Region’s 3,881 sales last month were 19 per cent off the August 2007 figure of 4,816 but declined nine per cent from two years ago, when 4,270 sales were recorded.
“Despite August’s moderate sales, the 57,364 transactions that have occurred this year are within 14 per cent of the 67,146 figure recorded a year ago,” said Ms. O’Neill. “In light of the fact that 2007 was a record year, our current market can certainly be characterized as stable.”
There are currently 25,076, properties available for sale in the GTA, which represents a 31 per cent increase from the 19,145 active listings a year ago. Increased choice has resulted in properties remaining on the market for an average of 36 days compared to 33 days a year ago.
Several neighbourhoods throughout the GTA experienced increased sales activity last month compared to August 2007.
In Pickering (E13) transactions rose six per cent based primarily on strong semi-detached home sales.
In Halton Hills (W27) strong attached/row house sales activity lead to a three per cent increase in transactions overall.
Condominium apartment and detached home transactions drove Rosedale (C09) to an 81 per cent increase in overall sales.
Detached home transactions also contributed to an 11 per cent overall increase in sales in Aurora (N06).