The article below by Bill Johnston was published in the National Post on March 19th.

Existing home sales in the Greater Toronto Area remained strong in February. There were 6,266 transactions on the MLS, representing a 14% decline from February 2010′s record. While not representing a record, February 2011 sales were 50% higher than February 2009′s during the recession and slightly higher than the average February sales over the previous 10 years.

One of the key factors underlying transactions in the resale home market is consumer confidence. If people are confident they can purchase and pay for a home over the long term, sales levels will remain strong. Continued improvement in the GTA economy over the past year has arguably kept confidence levels high. There has been steady growth in the number of people employed, the unemployment rate has receded markedly from the recessionary peak and income growth has accelerated.

The results of RBC’s recent annual Home Ownership Study confirm what we have experienced in the housing market over the past year. The percentage of Canadians who said they would likely purchase a home over the next two years was at 29% -down from 31% in 2010 (the highest level on record), but the second highest reading since 2006. The percentage of Ontarians planning on purchasing a home over the next two years was slightly lower than the national average at 28%.

“The RBC survey results follow recent GTA trends,” says TREB senior manager of market analysis, Jason Mercer. Last year at this time, home sales were running well above what the level of population dictated,” Mr. Mercer says. “In 2011 and 2012, the pace of sales is expected to be in line with the expected level of population and population growth. Expect to see between 80,000 and 85,000 transactions through the MLS this year, and another 85,000 to 90,000 sales in 2012.”

When asked about where price is headed, Mr. Mercer says he’s confident that we will continue to see growth through the end of 2012, albeit at a subdued rate.

“Average existing home selling prices are expected to increase 3% to 5% annually over the next two years,” he says. “Even with mortgage rate hikes in 2011 and 2012, the share of the average GTA household’s income dedicated to mortgage principal and interest, property tax and utilities will remain manageable in relation to accepted lending standards.

“Recently, average price growth has also been supported by relatively tight market conditions. While sales have remained strong, the number of new listings has been low from a historic perspective. There has been enough competition between home buyers to promote price growth.”

Market conditions through the recession-recovery period between 2008 and the end of 2010 can be characterized as volatile. Over the next two years, by most accounts, it seems like the housing market in the GTA will get back to normal.

Bill Johnston is president of the Toronto Real Estate Board, a professional association that represents 30,000 realtors in the Greater Toronto Area.


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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The article below by Jennifer Wilson was published in the Toronto Star on March 23rd.

Whether you’re moving out of town, moving up or splitting up, everyone has the same goal when they’re selling their home: to make as much as they can.

One way to get the best sale price is to invest a few dollars to spruce up your place for prospective buyers. One rule of thumb is that you should set aside 1 per cent of your asking price, so, if you’re listing for $400,000 a renovation budget of $4,000 isn’t out of line.

Of course, certain projects will get you more, though in most cases you won’t get all your money back. The return can be anywhere from nothing, for skylights and pools, to an average of 75 per cent on high-performing kitchens and bathroom projects.

Here are some tips:

Kitchen

You can expect to recover 75 to 100 per cent of your investment in kitchens and bathrooms.

“The payback is tremendous,” says Frank Turco, Home Depot’s trend and design manager. That’s because buyers don’t want to undertake a cumbersome renovation that restricts access to these key spaces.

A few hundred dollars can give your kitchen a whole new look. Cabinets can be cleaned, lightly sanded and painted to look like new, while hardware can also be updated quickly and inexpensively, with new pulls and handles starting at a few dollars a pop. Outdated track lights can be replaced with more fashionable varieties, focused task lighting and undercabinet lighting. Dingy backsplashes can also be refreshed with a coat of paint or new tiles, which are available in peel-and-stick varieties.

For a bit more of a splurge, try replacing laminate cabinets with wood and laminate countertops for something a higher end, such as Corian or granite. New appliances are also a worthy investment, with stainless steel and once again trendy glossy white appealing to buyers.

Bathrooms

In the bathroom, like the kitchen, painting the vanity, and swapping out light fixtures and pulls can refresh the space inexpensively. Upgrading faucets, taps and shower heads are another simple project in the $50 – $100 range.

Additional storage is also essential in the bathroom, so look into closet and cupboard organizing systems and adding extra shelving.

Or go all out and embrace the trend for more spa-like bathrooms with marble tiling, full glass showers with extra nozzles and high-end showerheads or a steam shower. Double sinks, heated floors and upgraded countertops are also nice perks.

Paint

In all spaces, a fresh coat of paint works wonders – bringing homeowners a return of 50 to 70 cents on the dollar, says says Mariano Gigante, a sales representative with Sutton Group. Others like, Re/Max salesperson Justin Kua estimate a fresh paint job can bring in returns of 300 per cent.

“Even if it is a simple thing to fix, buyers want it done,” says Gigante, noting it also helps sell homes quicker than other upgrades. Wipe away scuffed paint and outdated colours with neutral hues for a fresh, buyer friendly look.

Flooring

Ripping out worn carpets and refinishing, or replacing, battered floors can offer returns of 75 to 100 per cent, says Gigante, noting that laminate and wood offer the highest rate of return.

Turco recommends laminate vinyl options, explaining “vinyl has come a long, long way” and is now available in durable planks, tiles and sheets that can mimic almost any look and texture, with many varieties available in the $60 range for 24 square feet. Plus, as far as projects go, it’s “inexpensive and easy, as long as you have a box cutter and a ruler.”

Other upgrades

Replacing doors and windows can bring in 50 to 75 per cent – and help you save on energy costs to boot.

Landscaping, meanwhile, will put roughly 25 to 50 per cent of what you spend back into your pocket. A well-maintained garden, brick paths and even urns can also do a lot to boost your home’s curb appeal.

A buyer’s first impression is key so for an easy fix up under $100, Turco suggests cleaning up the front yard, repainting pots and planters, laying a new welcome mat and painting the front door.

What not to do

Finishing a basement will see about a 50 per cent return on your investment, but as a big and costly job, Gigante says it’s only worthwhile if the homeowners intend on using it themselves for a while.

Skip the skylight. While additional natural light can be a boost, this project is expected to bring you absolutely no return, says Gigante.

Also avoid adding a swimming pool or Jacuzzi. It usually doesn’t improve your resale value and can even discourage buyers, such as families with small children.

If you are tackling a larger scale reno or working with a contractor, make sure the project comes in at less than your one per cent resale renovation budget, including a hefty contingency fund. The projects that offer the biggest returns – kitchens and bathrooms – can also bring the biggest surprises, snowballing costs as mechanical problems are uncovered.


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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The article below by Amy Fontinelle was published on Investopedia.com on March 14th.

Buying a home is a very emotional process, and allowing those emotions to get the best of you can cause you to make any number of mistakes.

Estimate the future value of your savings There are eight common emotional mistakes that people make when buying a home. Avoiding these pitfalls will help you find the best home-sweet-home.

Mistake 1: Falling in love with a house you can’t afford

Once you’ve fallen in love with a particular home, it’s hard to go back. You start dreaming about how great your life would be if you had all the wonderful things it offered – the lovely, tree-lined streets, the jetted bathtub, the spacious kitchen with professional-grade appliances. However, if you can’t or won’t be able to afford that house, you’re just hurting yourself. To avoid the temptation to get in over your head financially, or the disappointment of feeling like you’re settling for less than you deserve, it’s best to only look at homes in your price range.

Further, start your search at the low end of your price range – if what you find there satisfies you, there’s no need to go higher. Remember, when you buy another $10,000 worth of house, you’re not just paying an extra $10,000 – you’re paying an extra $10,000 plus interest, which might come out to double that amount or more over the life of your loan. You may be better off putting that money toward another purpose.

Mistake 2: Thinking that a particular house is the only one that will suit you

Unless you are a high-end buyer looking at custom homes, chances are that for any home you find that you like, there are quite a few others that are nearly identical to it. Most neighborhoods have multiple homes that are the same model. Further, most neighborhoods are full of homes that were all constructed by the same builder, so even if you can’t find an identical model for sale, you can probably find a house with many of the same features. If you’re considering a condo or townhouse, the odds are also in your favour.

Even when you have a long list of must-haves, there are probably several homes out there that can meet your needs. Another house in the same area might be similar enough to meet your needs but be less expensive. Likewise, you could find a similar model with more of the upgrades you’re looking for at a similar price.

Mistake 3: Being so desperate to become a homeowner that you buy a place that doesn’t suit you

When you’ve been looking for a while and you’re not seeing anything you like – or worse, you’re getting outbid on the houses you do want – it’s easy to start thinking that what you really want simply won’t happen. If you move into a house you’ll end up hating, the transaction costs to get rid of it will be costly. You’ll have to pay an agent’s commission (up to 5-6% of the sale price) and you’ll have to pay closing costs for the mortgage on your new house. You’ll also deal with the hassle and expense of moving yet again. If you decide not to move but to try to make the best of what you have, remember that alterations and renovations are expensive, time-consuming and stressful. The best advice is to wait if you have the luxury of time, or to correct your vision for your future to what you actually need, not want.

Mistake 4: Overlooking important flaws in the structure, appearance or location of the house

For any of the three reasons we just discussed, you might be tempted to ignore major problems with the house that will be difficult, expensive or impossible to change. Carefully consider your options before you make a commitment, and consider waiting until something better comes along. New houses come on the market every day.

Mistake 5: Thinking you’re a handyman when you’re not

Don’t buy a fixer-upper that’s more than you can handle in terms of time, money or ability. For example, if you think you can do the work yourself then realize you can’t once you get started, any repairs or upgrades you were planning to make will probably cost twice as much once you factor in the labour – and that may not be in your budget. Not to mention the costs involved to fix anything you may have started and the fees to replace the materials you wasted. Honestly evaluate your abilities, your budget and how soon you need to move before purchasing a property that isn’t move-in ready.

Mistake 6: Putting in an offer before carefully considering all the pros and cons of the property

In a hot market (or even a hot submarket, with dirt-cheap, bank-owned properties during a housing slump) it may be necessary to pull the trigger very quickly if you find a home you like. However, you have to balance the need to make a quick decision with the need to make sure the home will be right for you. Don’t neglect important steps like making sure the neighborhood feels safe at night as well as during the day and investigating possible noise issues like a nearby train. Ideally you’ll be able to take at least a night to sleep on the decision. How well you sleep that night and how you feel about the home in the morning will tell you a lot about whether the decision you’re about to make is the right one. Taking the time to consider the decision also gives you a chance to research how much the property is really worth and offer an appropriate price.

Mistake 7: Being too slow to pull the trigger

It’s a tough balancing act to make sure you make a careful decision yet don’t take too long to make it. Losing out on a property that you were almost ready to make an offer on because someone beat you to it can be heartbreaking. It can also have economic consequences. Let’s say you are self-employed. Perhaps for you more than anyone else, time is money. The more time and energy you have to take out of your normal activities to search for a house, the less time and energy you have available to work. Not dragging out the home buying process unnecessarily may be the best thing for your business, and the continued success of your business will be essential to paying the mortgage. If you don’t pull the trigger quickly, someone else might, and you’ll have to keep looking. Don’t underestimate how time-consuming and routine-disrupting house shopping can be. (A small business can increase your disposable income.

Mistake 8: Offering more than a house is worth

If there’s a lot of competition in your market and you find a place you really like, it’s all too easy to get sucked into a bidding war – or to try to preempt a bidding war by offering a high price in the first place. There are a couple of potential problems with this. First, if the house doesn’t appraise at or above the amount of your offer, the bank won’t give you the loan unless the seller reduces the price or you pay cash for the difference. If this happens, the shortfall on your bid as opposed to your mortgage will have to be paid out of pocket. Second, when you go to sell the house, if market conditions are similar to or worse than they were when you purchased, you may find yourself upside down on the mortgage and unable to sell. Make sure the purchase price for the home you buy is reasonable for both the house and the location by examining comparable sales and getting your agent’s opinion before making an offer.

Conclusion

Even knowing all of these things, it’s still hard to act on them. You may still find yourself making decisions based on emotion during the home-buying process. Slow down, overcome your emotions and, ultimately, make a home-purchase decision that’s good for both your feelings and your finances.


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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The condominium market in Canada shows “emerging signs of oversupply” but there is no crash imminent, says a report by the Bank of Nova Scotia.

“We have a situation of rising multi-housing unit inventory which has been trending up since 2008,” Adrienne Warren, senior economist for the bank told a real estate forum Tuesday. “The current outstanding stock of unsold new homes is higher than average.”

The supply overhang means that “soft pricing conditions” for the condo market will characterize 2011, said Warren, especially “if first-time homebuyer demand weakens more than expected.”

However, Warren is not calling for a crash in the condo market. The severity of any potential correction depends on future building, which would impact supply, she says.

“Barring a further ramping up of multi-unit building, we expect these excess units can be absorbed without a major price adjustment,” said Warren. “The overall number of units under construction has stabilized, with current starts being matched by an equivalent level of completions.”

Capital Economics analyst Dave Madani said in a separate and more downbeat report Tuesday that any correction in the housing market is likely in the second half of 2011.

“A downturn in the housing market later this year will lead to further slowdown in consumption growth and a more severe contraction in residential investment,” said Madani. “A correction in the overheating housing market could derail the domestic recovery.”

Madani had forecast earlier that home prices in Canada were as much as 25 per cent overvalued.

Scotiabank chief economist Warren Jestin said 2011 will bring a softer housing market, but unlike Capital Economics, is not forecasting a major price adjustment.

“We may see some price corrections, but it won’t be a bubble.”

Housing sales overall should come in about 15 per cent below the 2007 peak, but in line with the 10-year average, according to the bank.

Warren says it is likely that prices will go “sideways” for the next four or five years. She is forecasting that home prices overall will increase by 2 per cent by the end of 2011.

“Historically, home prices tend to overshoot, then they undershoot until incomes and growth catches up.” With inflation at about 2 per cent, that is effectively flat pricing, said Warren.

The condominium segment however, remains the most vulnerable to overbuilding, say analysts.

Multi-unit dwellings now account for more than half of all new housing being built in Canada.

In 1981, about 3 per cent of homeowners were living in condos. In 2006, that number had surged to 11 per cent. In the Toronto market alone, there were 286 projects being marketed at the end of 2010, thought to be the most of any city in North America.

However, Warren says the market can absorb a larger number of condos being built today in part because of favourable demographics. An aging population is moving toward a turnkey lifestyle, and buyers younger than 35 have also increasingly turned to highrise living.

Affordability has also been a major factor, since condos are cheaper than single detached housing, especially in built-up downtown areas.

That could be impacted by increases in interest rates moving forward. The Bank of Canada held firm on their key overnight rate on Tuesday, leaving it at 1 per cent. However, those rates are forecast to go up by 1.5 to 2 percentage points a year from now, said Jestin. That will put a further crimp on the market.

Another issue for Ontario is the high-flying loonie.

The Bank forecasts the Canadian dollar could go as high as 1.08 (U.S.) this year. That would hurt the manufacturing sector and the jobs that go with it.

Phil Soper, president and CEO of Royal LePage Real Estate Services said despite the ups and downs in the economy, the Canadian market remains relatively strong.

“Despite all the doom and gloom we hear coming out of the U.S., attitudes toward home ownership remain buoyant in Canada.”


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.





Please take 60 second to complete our poll on the left side of the screen.