Toronto Real Estate

Being the Provincial capital, the Toronto Real Estate market has plenty of housing options available. If you are intending to buy, please read the Home Buying

page in conjunction with this and always enlist the advice of a local professional. For the buyer, the services of a realtor are free and their local knowledge is priceless when you are undertaking such an important, life changing transaction.

WE have teamed up with local Toronto Real Estate expert Renate Penkett who, as a member of the Toronto Real Estate Board, specialises in relocation. Renate has been involved in relocation for many years and offers her clients a comprehensive and professional house purchase and relocation experience.

The following Toronto Real Estate Market update is provided by Renate:

TORONTO, June 4, 2008 -- The Greater Toronto Area resale housing market recorded 9,411 transactions in May, Toronto Real Estate Board President Maureen O’Neill announced today.

On a year-over-year basis the GTA average price increased four per cent to $398,148 in May from the May 2007 average of $382,787. Prices increased three per cent in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 Region there was a five per cent increase to $374,629 from $355,341 last May.

“Price gains show that real estate continues to be a solid investment for the consumer,” said Ms. O’Neill. “We are confident about the market because employment in the GTA continues to be strong and interest rates remain low. As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable.”

“May’s sales figures represent a 16 per cent decline in the GTA from the record month a year ago when 11,146 sales were recorded,” said Ms. O’Neill. “More than 9,000 properties changing hands still represents considerable market activity.”

In the City of Toronto, there were 3,711 sales, down 19 per cent from last May’s 4,578 sales and down 6 per cent from May 2006. In the 905 Region, 5,700 transactions were recorded, which represents a 13 per cent decline from the 6,568 sales during the same period a year ago but up 4 per cent from May 2006.

“The Toronto Land Transfer Tax has been in effect for four months and the decline in sales has been running for the same time period,” said Ms. O’Neill. “We’re keeping a close watch on the effect of this new tax.”

Two specific areas North of Toronto experienced increased sales activity in May. In Uxbridge (N16) sales were up 10 per cent, while Stouffville (N12) saw a 12 per cent increase in sales, driven mainly by detached home transactions.

With both local knowledge and the powerful MLS® (Multiple Listing Service) that lists all properties currently on the market, Renate is fully equipped to track down the property of your dreams. For further information on Renate's free service for Buyers either click on her picture or simply CLICK HERE.

Besides the actual sourcing of your property and ensuring the purchase negotiations go smoothly, Renate's local knowledge can help you with proximity to schools, hospitals, employment and other features that are important to YOU. Even understanding the commute to work and the availability of local transport can be critical in your choice of location.

Renting

Many people will want to rent somewhere when they first arrive in a particular location before they commit to a mortgage. As with all of Canada, Rentals are not cheap but they are relatively plentiful. Always ensure you understand your Legal Obligations and also your rights as a tenant. Try to rent through an agency as they are more likely to have good quality, well kept property on their books.

A normal agreement in the Toronto Real Estate Market is a 6 month initial lease that is then renewed monthly, you will probably have to pay a damage deposit equivalent to one months rent up front as well. You will be responsible for your contents insurance - check to make sure you are not required to cover the buildings insurance though this is normally the responsiblilty of the landlord. Whatever happens, you'll be responsible for insuring your own possessions. Some utilities may be included in the rent.

New Builds

With the new builds you can buy a "spec home" normally already built to a builder's standard floor plan. Or you can meet with the different New Home Builders and either choose the home you want from their selection of blueprints with different "upgrades" or have one designed for you.

There are a multitude of builders in the Toronto Real Estate market area and it is definitely worth teaming up with one of the reputable firms. They may be slightly more expensive, but will be worth it in the long run. This is especially true when it comes to warranty work and attracting competent tradesmen to complete the project on time.

With a new home you will receive a minimum 1 year New Home Warranty backed up by a 7 year structural defects plan. The builder should schedule a series of inspections throughout their warranty period to deal with any issues and should also respond to urgent problems (loss of heat in winter, dangerous faults etc.).

In most cases you will be able to use the builder's lawyer free of charge to close the transaction but in the event of legal issues they will represent the builder and you will have to find your own.

The mortgage provider will require a home inspection which is normally a paperwork exercise with a fee attached! New Build homes in the Toronto Real Estate market will attract GST of 6%, up to 3% should be rebated directly to you by the builder off the price and this will then be confirmed by Canada Revenue about 6 months after the sale. It's a very long winded way of doing it, but basically you will be charged GST at around 3% on the sale - depending upon the value of the home you are buying. Ensure that this is confirmed to you by either the builder or your Realtor before you sign contracts!

Depending upon the deal negotiated with the builder, be prepared for a lot of expense to landscape and fence the gardens, any basement development and all the "small" things add up like curtains and fittings.

If you don't mind landscaping yourself or paying for it, the benefits of a new home are obvious. It is one less thing to worry about during your first few years of settling if the house is under warranty!

Pre-Owned Homes

There are a lot of pre-owned homes on the Toronto real estate market and are advertised in the free Toronto Real Estate Weekly. They are also listed on the "Multiple Listing Service" (MLS) on the net. The neighbourhood you move to should be thoroughly researched. It's definitely worth renting for at least 6 months if you don't have any reliable connections in the area to guide you. At the minimum I'd check with the local Police station or RCMP detatchment to take advice on bad areas.

Also, visit the area at different times of the day and night over several weeks - even take a few walks around and talk to people. You'd be surprised how much information - good and bad - you can gather, as well as how the place feels. A Realtor should be able to offer guidance, though please use your judgement.

Some of the benefits of a pre-owned home are that it will normally be landscaped, could be developed in the basement and any teething problems should have been dealt with. There will be no GST applied to the house price which is quite a saving, though the price of the house will be adjusted for the landscaping etc.

Hiring a lawyer is essential for your legal protection, to explain all the jargon and ensure a smooth possession. Lawyers perform similar duties to those around the world but be prepared for it to be a lot faster. It's possible to take possession in 2 weeks! Some extremely creative financing is available to enable those who wouldn't normally qualify for the full mortgage amount to purchase their own property. Because of the unique opportunities for financing your own home in the Toronto Real Estate market it is imperative that you take expert advice to ensure that you know all of your options.

The most important benefit is that you may be able to take possession very promptly and could save you money on a rental property.