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Housing market gets sunnier outlook

Posted by StagingWorks on February 19th, 2011

The article below by Tony Wong and Allison Cross was published in the Toronto Star.
 
Like many Toronto-based realtors, Rashida Dhalla had expected a quiet January.
 
“That’s the time I normally book off for vacation and do paperwork,” said the ReMax agent.
 
So when she listed a home under power of sale for $233,000 last month, she didn’t expect much activity, especially given the healthy dump of snow in the city.
 
And there was another thing: The property was a dog. No showings were allowed inside due to “potential mould and safety reasons.”

Instead, she received 49 offers on the house. It sold for $355,000, or 152% of the listing price.

“It’s just about impossible to predict this market,” says Dhalla. “Just when you think it might be slowing down, it starts back up again.”

The market was supposed to be much slower this year. But on Tuesday, the Canadian Real Estate Association significantly upgraded its housing forecast, citing greater consumer confidence and an improved economic outlook.

Its previous forecast called for a 0.8% drop in prices this year.

The CREA, which represents realtors, predicts average home prices nationally will rise by 1.3% in 2011 to $343,300, and another 1.3% in 2012 to $347,900.

That’s not what it said in November, after it had downgraded its forecasts four times in a row. The previous prediction of a 0.8% drop in prices would have made 2011 the first time after 15 years that home prices went into negative territory.

Now it says the winning streak will continue. But not everyone agrees. Trying to read the market has been difficult at best for economists, who seem to be chasing a moving target. Forecasts have been so divergent that consumers might be forgiven if they think some analysts are not even looking at the same country.

The CREA forecast comes on the heels of a controversial report by Capital Economics last week that said Canadian home prices were 25% overvalued, and due for a fall over the next several years.

Others say the market is due for a downward correction of anywhere from 5% to 25%.

But the Toronto Real Estate Board is even more bullish than the CREA for 2011, forecasting price increases of anywhere from 3% to 5%.

Other economists say prices in Toronto are likely to remain flat this year. One reason, they argue, is that there is a greater supply of new housing stock coming on the market, which should help temper price increases.

Another reason might be higher interest rates due in the second half of the year, which will crimp affordability.

Meanwhile, the Royal Bank announced Tuesday it is increasing some of its fixed-rate mortgages by as much as 0.25%age points.

Canada’s biggest bank was following in the footsteps of CIBC and TD Canada Trust, which announced their own interest rate increases on Monday.

RBC’s five-year fixed-rate mortgage increased by 0.25% to 5.44%. The bank increased its one-year fixed-rate mortgage 0.15% to 3.5%.

The new rates come into effect on Wednesday.

“A quarter-point jump in the rates does have a bit of an effect,” said Jim Rawson, a Toronto-based regional manger for Invis, a mortgage brokerage firm. “Say on a $250,000 mortgage, you’re probably talking about a $34-a-month difference.”

The other lever that may have a damping effect on the market is an increase in the supply of homes.

Toronto housing starts in January were up by a solid 37% compared with December in seasonally adjusted numbers, the Canada Mortgage and Housing Corporation said in a report released Tuesday. On an unadjusted basis, starts were up 39% in January compared with a year earlier. A home is considered “started” when the concrete foundations are poured.

ReMax is forecasting that the first quarter of the year will show slightly strong sales in Toronto, as tighter listings prevail and buyers try to beat stricter mortgage regulations.

In March, new rules will shorten amortization periods on government-backed mortgages to 30 years from 35.

The CREA also expects second-quarter sales to dip as a result, before they pick up steam in the second half of the year.

Condominiums will remain popular with buyers, and as the economy improves, so will luxury property sales priced above $1.5 million, ReMax forecasts. Properties priced between $400,000 and $900,000 in Toronto’s central core are forecast to be in most demand.

But everyone agrees the Canadian housing market, despite a recession and global financial uncertainty, has had a remarkable run.

Residential real estate in the Greater Toronto Area posted one of the “healthiest decades on record” from 2000 to 2010, according to a report released Tuesday by ReMax Canada.

Over an 11-year period, seller’s market conditions dominated.

The average price of a home increased to $431,463 at the end of 2010, from $243,255 in 2000. That works out to an annual compounded return of 5.35% before inflation.

Nationally, the average annual return was 6.82%, so the Toronto market actually underperformed compared with the country as a whole.


Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.
 
StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.
 
Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.

StagingWorks has been voted Toronto’s top home stager by Toronto Life.

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TREB Reports Sales for first two weeks of February

Posted by StagingWorks on February 19th, 2011

Greater Toronto Realtors reported 3,084 sales during the first two weeks of February 2011 – a 13 per cent decrease compared to the first two weeks of February 2010. “We are on pace for a strong sales result in February, but transactions will come in lower than the record result reported last February. Sales remain strong because the GTA resale market contains a diversity of housing types catering to a wide array of home ownership needs,” said Toronto Real Estate Board (TREB) President Bill Johnston.
 
The average price for transactions during the first 14 days of February was $451,257, representing a five per cent increase compared to the first two weeks of February 2010. “Average selling price growth for existing homes is expected to range between three and five per cent this year. Tighter market conditions over the last four months have pushed price growth to the top end of this range,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.


Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.
 
StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.
 
Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.

StagingWorks has been voted Toronto’s top home stager by Toronto Life.

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Home sales hit nine month high

Posted by StagingWorks on February 19th, 2011

The following article was released recently by CREA.
 
Home sales in Canada increased 4.5 per cent in January over the previous month, their highest seasonally adjusted point since last April. The Canadian Real Estate Association said Tuesday the Vancouver and Toronto markets led the way, but there were gains in more than half of all local markets during the month.

“We anticipated the recent announcement of tighter mortgage regulations, which will come into effect this March, would pull forward sales activity into the first quarter of 2011, particularly in some of Canada’s more expensive housing markets,” CREA chief economist Gregory Klump said.

“The sharp rise in sales activity in Toronto following the announcement provides early evidence confirming this.”

Klump was referring to Finance Minister Jim Flaherty’s announcement in January that Ottawa will no longer insure mortgages of longer than 30 years.

National sales activity has improved steadily since last summer, and now stands almost 25 per cent above the low point reached in July 2010, CREA said.

The national average price for homes sold in January was $343,675. While little changed compared to the previous three months, much like the total sales numbers, the price figure is 4.5 per cent higher than the average price level in January 2010.

New listings of homes for sale normally post their biggest month-over-month increase in January, and January 2011 was no exception.

New listings more than doubled in January compared to the previous month, the largest such gain since 2007.


Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.

StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.

Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.

StagingWorks has been voted Toronto’s top home stager by Toronto Life.

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10 weekend projects to improve your home’s value

Posted by StagingWorks on February 8th, 2011

The following article by Melinda Fulmer was posted on MSN Real Estate.

You don’t have to shell out big bucks to get a better price for your home. These easy, inexpensive fixes will add value to your home without breaking the bank.

Fetching top dollar for your home in today’s tough market doesn’t require an $80,000 kitchen remodel or an expensive landscape redesign.

Real-estate experts say your best bet is to invest a little sweat equity into a series of small weekend jobs — $300 or less — that boost your home’s appeal and eliminate buyers’ biggest objections.

Here are 10 quick ways to add value to your home without breaking the bank:

1. The de-clutter weekend

De-cluttering should be the first job sellers cross off their list before starting any other project, agents and real-estate investors say.

Most people, says Atlanta house flipper Brian Trow, get used to their clutter and don’t realize what a distraction it is for buyers. “You want to give a buyer the chance to see their stuff in your house,” says Trow, whose firm Foundations Investment Group is featured on A&E’s “Flip This House.” Moreover, he says, it gives the illusion of space.

Get a friend, colleague or casual acquaintance (who won’t mind offending you) to walk through your house and give it to you straight. What is distracting? What needs to go?
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Figure out a way to get your clothes, books, appliances, papers, toys, art and photos under control. Shoving everything into cabinets, closets and the garage is not the answer, says Toronto-based home staging expert Debra Gould, owner of The Staging Diva. People will look there and think, “If they can’t fit everything in there, neither can I.”

Pack things away in boxes and put them in the attic or put them in storage. Gould recommends coming up with a system of folders for bills, mail and important papers. Clean out a junk drawer or drawer in your entertainment center to hold these folders, so they can be cleared off counters easily. Likewise, clear the decks of a lot of your kids’ toys, putting only 15 or 20 in rotation at a time. Donate some and store the rest in boxes in the attic or garage.

“You have to think, ‘What can I live without?’ for the next few months,” Gould says.

2. Make over your cabinets

The kitchen is the most important room in the house to get right, says Timothy Dahl, editor and founder of home-renovation blog Charles & Hudson. And cabinets are often one of the biggest problems, he says.

You don’t need to get your cabinets refaced or replaced to make them look presentable. If they’re scratched or look dated, just spring for a couple of cans of paint and put a new finish on them.

White and other light neutral colors work best for most kitchens and bathrooms. If you have a larger kitchen that gets a lot of natural light, you could even try a dark chocolate brown or black, Trow adds.

Once you’re done painting, don’t neglect the finishing touch: the hardware. “It’s an accent that people notice,” Dahl says.

Choose something simple and relatively modern for the pulls, preferably in a brushed nickel. Steer clear of brass, brightly colored glass or anything decorated with pictures of birds or flowers.

3. Patch and paint

A fresh coat of paint in the living room, kitchen and master bathroom — the most important rooms in the house — will pay big dividends, says Elizabeth Blakeslee, an agent with Coldwell Banker in Washington, D.C. “Paint is one of the easiest and cheapest things you can do to freshen up your home and add zip to it.”

Just don’t try to jazz things up with bright colors, experts say. The most universally appealing shades are neutrals: yellow-based tones such as off-white, mushroom, medium brown or taupe, Trow says. And stay away from anything too dark. It will make the room look small.

A few more paint don’ts from the pros:

* Don’t try to experiment with accent colors or walls. (Most people don’t get this right.)

* Don’t choose four or five different colors in the house. A satin wash of one color or a couple of related colors should flow smoothly from room to room.

* Don’t leave those wallpaper borders up when you paint. Their time has come and gone.

* Once you’re done painting, don’t ruin the fresh look by re-hanging too many of your family photos or pieces of art, Trow says.

4. Spiff up your home’s curb appeal

One quick way to entice more buyers into your house is to spruce up what they see from the street. Spend a weekend cleaning or replacing your mailbox, putting up new street numbers that match the style of your house, cleaning your storm door and windows and touching up chipped paint on your front door, Blakeslee says. “You want their first reaction to be, ‘Isn’t that cute; doesn’t that look nice,’” she adds.

Take a good hard look at your landscaping and trim back any shrubs around the front that are unruly. Get rid of lawn ornaments, toys, leaves and other debris from the yard, as well as those tools or construction materials propped against a fence.

If you see bald spots, plant a few flowering shrubs. A pot of flowers by the front door, or flowering plants along the walk is a nice touch, too, agents say. Power-wash your driveway and walk (and the house, if you have vinyl siding). A tidy front yard makes buyers more willing to come inside for a look.

5. Fix your lighting

You don’t have to go crazy here, agents say. Just replace anything damaged, dated or distracting.

Get rid of that Hollywood dressing-room-style lighting that frames your bathroom mirror, or at the very least, replace all of the bulbs.

Ditch that tacky, low-hanging chandelier over the dining table and replace it with a simple pendant lamp hung a little higher — at least four feet from the top of the table, Gould says.

Ditto for that energy-efficient, but oh-so-ugly fluorescent tube in your kitchen. “Nothing looks good under them,” Dahl says.
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You don’t have to spend a lot on new fixtures — $100 or less — unless your house is priced in the upper tier of the market, experts say.

And consider replacing the light bulbs you have in your darker rooms with a higher wattage, just for the time you’ll be showing your house, Gould adds. “You want lots of light in that house.”

6. Get fabulously clean floors

Flooring is one area where none of our experts seemed to agree. So your safest bet is to spend very little and leave that choice to the buyer. “You don’t want to invest in something that someone is not going to like,” Dahl says.

Settle for a floor that looks spic and span. If you have very dirty carpet, rent a steam machine and get out the stains. If you have hardwoods, buff and polish them, agents say.

And if you have a vinyl floor that is horrendously loud or damaged, consider putting down some vinyl stick-on squares in a light color to keep it from becoming a distraction, Dahl says.

If you are very handy and can find a bargain at your local big-box store, you might be able to afford a Pergo or cork replacement for a small kitchen.

7. ‘Dress’ your house

Once your house has been cleaned, patched and painted, it’s time to think about the best way to show it off. Home stagers and flippers say it pays to spend a little time on new “clothes” for your house.

In the bathroom, that means replacing your old shower curtain with a new model that is lined and made of fabric. Buy a new bath mat that is simple and not too bright — one like the type found in hotels is great, Gould says.

In fact, the look of an upscale hotel bathroom is what you are going for, because it looks peaceful and doesn’t make you think too much about the people who have used it. Adding fresh rolls of toilet paper before you show the house helps with that effect, Blakeslee says.

Buy a set of towels that actually match and hang them from a nice-looking towel bar. Gould says you’d be amazed at how many high-end houses she stages where the owners leave out threadbare towels that detract from a $100,000 renovation.

Clear the counters and make sure accessories such as the toothbrush holder or soap dish are coordinated and look elegant.

In the bedroom, consider your comforter. Is it stained, ripped or dated? If so, consider buying a new duvet cover or spread to keep the focus on the room, not your questionable taste.

And take a good hard look at your window treatments. Keep it light, bright and simple. Tie back dark or flouncy curtains, or replace them with pre-made panels. If you’re handy with a sewing machine, whip up some simple solid-color panels on your own.
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8. Create an impression of extra rooms

Most people are willing to pay a premium for a little more breathing room. But no one is going to add on just to sell his or her home. One way you can give buyers more livable area is to spruce up your garage or basement, Dahl says.

Organize the tools, sporting goods and other items in your garage and get them off the floor, as much as possible. Make sure there’s adequate lighting and clean or polish the floors. You want it to be a space where people can imagine spending hours tinkering on some craft or woodworking project.

Likewise, if you have a basement, Dahl says, spend some time clearing and cleaning the floor, installing adequate lighting and shelving, and sprucing up the stairs and entrance. You could even try out a sealant for concrete floors, he says. “People see these as extra rooms they want to finish,” Dahl says.

If you don’t have a basement, Trow suggests creating a sitting area in the backyard, with some pavers, outdoor seating and a few large potted plants, a flower bed or water feature.

9. Tackle the small stuff all at once

Instead of spreading out those annoying minor repairs over several months or a year, why not take care of them all at one time?

When you show your house, little problems such as a leaky faucet or a cabinet that sticks can be distracting, Gould says. “You don’t want to put up doubts in people’s minds about whether they are buying a good solid house,” Gould says.

You want the attention to be on your home’s potential, not its problems.

So make a list and invest a not-so-fun 48 hours in fixing those broken drawer slides, replacing moldy caulking around the bathtub and fixing that cracked tile or broken step leading down to the basement.

10. The finishing touches

Lastly, before you open your house to buyers, make sure you’ve got the details down, Trow says. Replace old, yellowing or brass switch-plate covers with new ones made of brushed metal.

Likewise, swap out old brass doorknobs and hinges and replace them with something more up-to-date.


Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.

StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.

Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.

StagingWorks has been voted Toronto’s top home stager by Toronto Life.

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