Happy New
Year and Best Wishes for Good Health and Prosperity in 2013!
This past year
in the GTA has been a very up and down year for resale real estate. The first
half posted strong unit sales increases and the second half showed a much softer
trend developing. The year ended with total sales at 85,731 units which was -4%
vs. 2011. This number is right on the average for the past 8 years as you will
see in the article on sales trends later in this newsletter.
Prices, on the
other hand, continued to post solid gains throughout the whole year and were up
7% on average. These price increases were fueled by continuing demand in the
GTA and a lack of inventory as listings were lower than usual during the last
half of the year. This lack of listings was one factor that contributed to
reduced sales numbers.
Another major
factor was low consumer confidence that was the result of a number of
issues. World wide financial turmoil, the slow US financial recovery, the US
election, the US 'fiscal cliff' drama and our own home grown mayoralty soap
opera. Even though Canada continues to enjoy a realtively stable economy and a
positive outlook, these factors have had an impact on our consumer confidence
and have negatively affected our real estate market in the
GTA.
Stronger
lending guidelines have also had a negative effect on our local market,
particularly for 1st time buyers and buyers of properties where the mortgage
would be over one million dollars, which are now not insured by CMHC. Many
buyers may have moved their purchase up to avoid these changes that came into
effect mid year.
So with most of
this in the past, I'm going to dust off my crystal ball and make a few comments
on what we might expect in 2013.
Firstly, we
have been seeing an increase in good news from both Europe and the US. In the
US, the housing market is starting to show increases in sales and prices in many
regions across the country - even some of those worst hit by their economic
meltdown.
We're also
finished with the uncertainty about the US elections which should help to take
away that distraction. Although, I'm sure, we will continue to see a lot of
onging drama as the GOP attempts to rescue itself from self
destructing.
In the GTA we
are approaching the beginning of the tradtionally strong 'spring' market and all
signs that I am seeing right now are very positive. New listings are already
increasing every day and we are seeing an increase in buyers back out in the
market in just the past week.
Now, if we can
just get the media to run a few positive stories.......
Prices will
likey show modest growth at best. Houses that are priced below $800,000 should
see good price growth, but as you rise in the price scale we will likely see a
contining price correction. For example, homes over $2,000,000 have already
seen price declines of between 5 and 15%, depending on the location. Unit sales
growth for the first few months of 2013 may be somewhat soft as we will be
comparing against very strong growth last spring.
The condo market
is another story. Condos located south of Bloor St. will likely see a
continuing decline in sales and also a softening in the selling price. Condos in
the Yonge/Sheppard/Finch area will also likely see downward pressure on prices.
There is a lot of inventory for sale and this is expected to
continue.
Condos in midtown (St. Clair to Eglinton) along the Yonge
subway are very much in demand and should continue so. Selling prices for these
will remain relatively stronger.
All things
considered, it is shaping up to be a good market and I look forward to your
calls about selling or buying.
We have a
number of interesting articles in this issue including one about choosing an
older or newer home. One of the biggest decisions house hunters often face is
the choice between older and newer. This month's article helps clear up the
confusion by outlining the advantages of both options.
There are also
some great ideas on how to creatively decorate your children's bedroom in a way
that won't break the bank as well as a few popular text abbreviations you need
to be up on.
Thanks so much
for checking out this month's newsletter. Please get in touch if you have any
questions or comments regarding the articles, or real estate in general -- it'd
be great to hear from you!
You can reach
me at 416.561.2710 begin_of_the_skype_highlighting  416.561.2710 FREE end_of_the_skype_highlighting or armand@armandgilks.com
Sincerely,
Armand
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| Toronto Real Estate Board Market Report |
 Greater Toronto
Area REALTORS® reported 3,690 sales through the TorontoMLS system in December
2012 – down from 4,585 sales in December 2011. Total sales for 2012 amounted to
85,731 – down from 89,096 transactions in 2011.
“The number of
transactions in 2012 was quite strong from a historic perspective. We saw
strong year-over-year growth in sales in the first half of the year, but this
growth was more than offset by sales declines in the second half. In the City
of Toronto, the dip in sales was at least partially affected by the additional
Land Transfer Tax, which buyers must pay upfront,” said Toronto Real Estate
Board (TREB) President Ann Hannah.
The average
selling price in December 2012 was up by 6.5 per cent year-over-year to
$478,739. The average selling price for 2012 as a whole was up by almost seven
per cent to $497,298.
“Robust annual
rates of price growth were reported through most months of 2012. Price growth
was strongest for low-rise homes, including singles, semis and townhouses.
Despite a dip in sales, market conditions remained tight for these home types
with substantial competition between buyers,” said TREB’s Senior Manager of
Market Analysis Jason Mercer.
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| Trend of GTA Sales Informaton |
 Below is the sales and price trend for the past 8 years.
As you can see, despite the slower last half of the year in 2012, the overall
year was on a par with the average for previous years.
UNIT AVERAGE
YEAR SALES %chge PRICE %chge
2005 84,135 +1% $335,907
+7%
2006 83,084 -1% $351,941
+5%
2007 93,193 +12% $376,236 +7%
2008
74,552 -10% $379,347 +1%
2009
87,308 +7% $395,460 +4%
2010 85,535
-2% $431,276 +9%
2011
89,096 +4% $465,014 +8%
2012 85,731
-4% $497,298 +7%
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| Rent or Buy? What's Best for You? |
I often get this question from buyers and there is
never an easy answer. One of the best calculators that I have seen that helps
to answer it is provided by The Globe and Mail. Their site also provides a
complet selection of calculators for everything from recovering from a bear
market to is it worth the extra drive to save money with cheaper
gas.
Click
here to acces their selection of 33 different financial
calculators.
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| Old or New: What's Best for You? |
 Home buyers
face countless decisions when purchasing a home. One of the first things to
establish is whether you prefer a newer or older home.
Comparing newer
and older homes can be like comparing apples and oranges. It really depends on
your individual preferences and family priorities. Here are a few advantages
each type of home offers:
Pros
of Older Homes
- Old World
Charm - Older homes usually boast unique architectural features such as
stained glass windows and crown moulding.
- Location
- Older homes are often located in well established communities with mature
trees and developed landscaping. They're also usually close to popular downtown
amenities.
- Solid as a
Rock - The craftsmanship that went into building homes years ago was
usually second to none which means they're built to last.
- Outdoor
Space - Older homes usually have larger lots which is an important
consideration if you value your privacy or wish to extend your home in the
future.
Pros
of Newer Homes
- Customizable
- A brand new home allows you to customize to your own tastes with options such
as heated floors, granite countertops or even simple items like
fixtures.
- Low
Maintenance - You're not likely to encounter any serious problems as
everything's brand new. The home's exterior will also be much easier to
maintain.
- Functional
- Newer homes are laid out with functional features such as open concept rooms,
attached garages, larger storage areas and ensuite bathrooms.
- Energy
Efficient - Better windows, insulation and appliances mean newer homes are
more energy efficient which translates into lower monthly bills for
homeowners.
Newer homes are
usually more functional but existing homes offer a level of character that new
homes can't match. You may have a fixed idea of what you prefer but keep an
open mind and make sure you're familiar with the pros and cons of each. This is
one of the biggest investments you'll ever make so do your research before
signing on the dotted line.
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| Child's Play Guide to Decorating |
 Designing a
room with your child is a great way to spend quality time together. It's also a
great opportunity for them to express their thoughts and opinions with
you.
One way to keep
things fun is to incorporate a theme into the room's interior design. Remember
that a child's interests change rapidly so keep the project simple and
flexible.
Wall stickers
are a great choice as they're inexpensive, come in a variety of themes, cover
large areas and are easy to put up and take down. This flexibility gives your
child the freedom to shape the look and feel themselves. Stickers are also a
great way to create boundaries if your kids share a room.
Display tables
and shelves are an excellent way to showcase decorative items. Framing family
photos or your child's artwork in bright or homemade frames is another nice
personal touch. Finally, attractive storage baskets are great accessories and
make tidying up a cinch!
A child's
vision of a perfect room isn't usually as complex or as costly as you'd expect.
With just enthusiasm alone, you can make your child's day by decorating their
room with a few simple items rather than investing weeks of time and lots of
money.
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| A Text Message Tutorial 4 U!! |
 The language of
texting is constantly evolving. You're probably up on many of the standard
texting abbreviations but here are a few that you may not be aware
of:
- YOLO
= you only live once
- KK =
kewl kewl (aka: ok)
- JK =
just kidding
- NBD =
no big deal
- ILBL8
= I’ll be late
- SMH =
shaking my head
- BFN =
bye for now
If you want to
check out a complete text dictionary just click on this
link.
It’s important
to familiarize yourself with this new language, especially if you have kids or
office colleagues who are communicating in short form. TTYL
:-)
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