David Pylyp

Activity in the Greater Toronto Area resale housing market moderated considerably during the first half of October with 2,700 homes changing hands, Toronto Real Estate Board President Maureen O'Neill announced today.

Sales volumes in the GTA decreased 18 per cent compared to the first half of October 2007, when 3,297 transactions were recorded and are down 10 per cent compared to the same period in 2006 when 3,007 sales took place.

In the City of Toronto 1,140 sales took place in the first half of this month. This represents a 21 per cent decline from the 1,446 sales that took place in the same period a year ago and a 13 per cent decrease from the 1,312 transactions recorded in the first half of October 2006.

In the 905 Region there were 1,560 sales in the first two weeks of this month, a 16 per cent decrease from the 1,851 transactions that took place during the same timeframe in 2007 and down eight per cent from the 1,695 homes sold during the first half of October 2006.
House prices declined throughout the GTA during the first half of the month. The average priceof a GTA home is currently $353,772, down 11 per cent from $399,013 recorded the comparable period in 2007.

In the City of Toronto the current average price $375,804, a 15 per cent decrease from the $441,878 average recorded at mid-October 2007.

In the 905 Region the average price of a home is currently $337,671. This represents an eight per cent decline from the $365,527 average recorded during the first half of October 2007.
With 27,559 properties currently listed on the TorontoMLS system, there is now 30 per cent more available stock from which to choose as compared to a year ago when 21,182 homes were listed.

"More choice can mean slightly longer wait times for sellers whose homes are now on average, selling after 34 days on the market as compared to 29 days a year ago," said Ms. O'Neill. "The list to sales ratio is 97 per cent of the list price."

Increased sales activity was noted in specific pockets located throughout the GTA.
Sales in Oshawa (E16) increased 15 per cent compared to the first half of October 2007, based mainly on solid sales of detached homes.

Previous news releases have incorporated 2006 comparisons. This was necessary in order to place the market statistics in a broader context. We will be referencing 2006 in its entirety at the end of the month when it will be more relevant.

"While we continue to watch the economic picture globally, it is the local real estate climate that will determine our market place," said Ms. O'Neill. "After the 2007 record highs, 2008 is an encouraging market for buyers."

David Pylyp; The results speak for themselves, Sales activity in the 416 is down significantly more than the 905, and that in my humble opinion is directly related to the continuation of the Additional Toronto Land Transfer Tax imposed by Mayor Miller. Our election has passed and the Canadian people have voted for no change or slight change in political direction. TRH Prime Minister Steven Harper proposed a First Time Buyers Tax Credit. Lets press to make sure it passes quickly to help in this calendar year. Fear uncertainty and doubt is still playing out in the global and especially US/Canadian stock Markets. I hope they find their level.

For those on the fence about buying or selling who ask is this a good time? I have the following response.. " Yes, if it will improve your family's finances and quality of life."

Recently while surfing the Real estate bulletin boards, I found this...

What's with the new MLS website?

I regularly search Toronto properties on the MLS at mls.ca and have always used the simple interface to choose my region (W01,C01 etc), price, type of dwelling and the number of listings per page. Well, it seems I can't do that anymore.

The site has changed to 'realtor.ca' and all of a sudden, there's this hard-to-use map interface that requires you to zoom in on an area (you can't really choose specifically - you have to vaguely zoom in and hope for the best; the map wobbles all over the place and zooms in and then way out again...it's a mess.

Plus: viewing my selection, at my convenience, seems impossible now. Is this a deliberate attempt by realtors to make it hard for folks who want to search without a realtor, to do so online? If so, isn't this really unfair: after all, MLS listings are for everybody, not just realtors or those represented by realtors. Does anyone know what's going on?

Some responses; The new MLS site was an attempt to address concerns that the public had about the old MLS.ca site. Google Mapping was now available and was intergrated into the display to show what homes/condos are nearby. It is however, not as user friendly as the old site. MLS.ca is a much better name vs Realtor.ca but there are some unresolved ownership issues about who has rights to the use of the trademark MLS.

There were public consultations and focus groups done before this site was launched. Unfortunately with any new technology there are some growing pains and there will have to be changes made. The MLS site is owned and run by the Canadian Real Estate Association on behalf of Realtors for the public's use. (via the cooperation of each real estate board in Canada.) It is no different than any other form of classified advertising.

The information available is only a portion of what is available on Realtors MLS version of the site. This is more about privacy issues than trying to hide information from the public. Realtor's pay for the overall MLS service and for the MLS "public" site. The idea of a conspiracy is absurd. Do we want to have people use Realtors? Of course we do, but we use the site as advertising, plain and simple. The MLS system is good for consumers and Agents. You just to compare other metropolitan areas that do not have an open MLS system and you will see that it is much more difficult to find information about available properties. Viewing available homes for sale does not discuss or evaluate the neighbourhoods or Home Buying Process. The site clearly indicates how many listing are mapped and how many are NOT included.

Many have talked about FSBO's posting onto the MLS system; This creates a variety of challenges. If ad revenue is earned from the posting of listings on the Realtor.ca site then everyone should be able to advertise. Why not also Insurance Companies, Lawyers and Home Inspectors? How will these revenues be shared? Will the realtors only (as shareholders of the MLS system) share in this revenue stream? How will it be divided geographically?

If you would like to search for a home by MLS District numbers then you should consider registering at an agent's website portal that permits complete access to the MLS system. Registered clients will still receive a daily email quicker containing complete data with address'.

I welcome your questions and comments.

With speculation about a slowing economy, everyone's searching for a little security. Here are [Toronto Life's] picks for crash-resistant neighbourhoods

The most important consideration in buying crash-proof real estate is the overall vitality of a neighbourhood. Look for areas with thriving local businesses and well-maintained homes that are accessible by TTC. Districts with a diverse mix (detached, semis, towns, apartments and condos) at a variety of price points means you won't run the risk of living in a bust area if, say, townhouses go out of fashion (ultra-high-end condos, which tend to attract foreign investment, are the exception). Flexibility is another key; properties that are easily converted between single-family and rental units will ensure against a property value-lowering fire sale if your neighbour is desperate to sell and can't hold out for a decent price. Regions populated by those who work in IT, advertising, design and media will fare better through a downturn than nabes with high-flying financiers or auto workers. Areas with artsy professionals often have a high proportion of cafés, galleries, boutiques and other value-maintaining amenities. Having a permanent attraction such as a museum, park or waterfront, and residents with fixed incomes (such as students and seniors) provides a steady support system for local businesses. Emerging areas with undervalued properties are money-makers when gentrification hits.

They include; Annex, Guildwood, High Park - Swansea, Kingsway South, Kensington - Chinatown, Longbranch, Palmerston - Little Italy, Rosedale - Moore Park, Trinity Bellwoods, University.

The criteria for selection was; high percentage of students and seniors, high concentration of luxury condos, properties can be converted from single family to rental units, permanent attraction and populated by IT, AD, design & media types.

David Pylyp; While I agree with the selection process, concentrating in the west side of Toronto I am more familiar with High Park- Swansea. They have excluded a large up and comming neighbourhood of The Junction. This has a vibrant arts community and a revival of business thru the local BIA. The Longbranch neighbourhoods (Mimico and Alderwood) have long been undervalued compared with other Toronto locations. Another omitted and highly desireable pocket is the Markland Wood neighbourhood with what, I believe, is the highest concentration of inground pools per square mile.

In each neighbourhood evaluation one does need to examine, community involvement, investment in renovations and the turnover (stabililty of ownership) rates.

FUD is a sales and marketing acronym which stands for; fear, uncertainty and doubt.
Are we currently suffering from FUD? With everyone taking a wait and see position, we will make every negative prediction a reality.

I received this today...

Over the last two weeks, I have never seen in my 22 years of lending, seen so much doubt and fear in our real estate market. Guest Contribution Lindsay Doke RBC

Houses sitting longer on the market, in some cases having to find solutions when the homes don't sell, and we have approved a purchase mortgage for the client. Clients holding off buying as they don't want to cash out their RRSP's or investments as they have dropped more than 20%.

The US in huge economic turmoil and on the brink of recession. Questions as to whether we, in Canada, could be victims of the same. When our variable pricing dropped to 0 - no discounting on new business, last Friday I too was shaken, until I took some time to gain perspective and reviewed our Economy and the marketplace .

CANADA IS STRONG AND HEAD AND SHOULDERS ABOVE OUR NEIGHBOURS TO THE SOUTH.

Prudent lending and wise decisions have kept and will keep our economy running stable with some growth in the last quarter. This week, two of the banks, TD bank and Ing Bank both have increased their prime to 5.75%!!

These two banks were offering outrageous pricing on mortgages over the past 9 months and now it has caught up with them. Just as it did 2 years ago with Bank of Montreal. This past week some major individuals in lending with TDCT in particular, are now out on the street armed with resumes seeking new employment.

"Folks you cannot survive in our business and sustain a growing business if you market on price alone".

The increasing presence of smaller low commission real estate brokerage houses you see going after your business is proof of this!!

RBC has not changed their mandate on how we do our business, providing a competitive product and leading with expert advice VALUE vs. PRICE

In the past three days the rumors that world wide banks would start to decrease their interest rate reductions has become reality. Reductions in Australia, England , France , US and now today in Canada, have been to jump start the economy once again and encourage consumer spending and confidence in the real estate market. Our feds this afternoon announced a 1/2% drop in the bank prime not to be confused with bank the lending prime which is 4.75%.

The variable remains the best product for those with Good cash flow. Growing incomes due to growth in their industry motivate buyers who want to maximize interest cost savings.

It is not however, for everyone.

Rest assured I will always advise at least 2 options for your clients to consider. That helps them make the most informed decision about their mortgage.

As my client of the month said it best.
"Lindsay I was afraid of the variable mortgage because of what friends and family were telling me. When I actually looked at the trends for the past 7 years with you and read the third party article you gave me the fears turned to confidence. I did my own research and realized it has been and still continues to be the safest product in the marketplace. By safe guarding our variable rate by increasing the payments by 10% (what the RBC mortgage allows), we are limiting the potential to ever need to convert our variable into a fixed term."

We all know when we let our clients speak for us and we act in their best interests that's the best for of advertising we can ever have! Deliver sound expert advise folks and win your client every time!

Always here to help you sell more homes!

Lindsay Doke Trusted Mortgage Advisor cell 416-464-6423 fax 905-785-2325 email: lindsay.doke@rbc.com http://mortgages.rbcroyalbank.com/lindsay.doke

David Pylyp; Lets get out there and snap up a few bargains!