Impact of Federal Budget on Real Estate

Here are the key highlights from this week's Canadian Federal Budget that touch on the world of Real Estate...

Homebuyers’ Plan
•The federal budget proposes to increase the withdrawal limit for first-time homebuyers using the Homebuyers Plan from $20,000 to $25,000 (per individual).

•Under this program, first-time homebuyers are allowed to withdraw funds from their RRSP, tax-free, to put towards the down payment on a home. Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal.

•Since 1992, an estimated 2 million Canadians have used the Home Buyers’ Plan to purchase approximately 900,000 homes, making this program a huge success. Unfortunately, as time has passed, the usefulness of this program eroded because withdrawal limits were not adjusted. For this reason, REALTORS® lobbied the federal government to increase the Home Buyers’ Plan withdrawal limit to $25,000.


First-Time Home Buyers’ Tax Credit
•The Budget proposes a 15 per cent credit that would be applied to a $5,000 amount, and would provide up to $750 in tax relief to reduce costs associated with first home purchases.
•To assist first-time home buyers with the costs related to the purchase of a home such as legal fees, land transfer taxes, etc.

Home Renovation Tax Credit
•The Budget proposes a 15 per cent credit to be claimed on the portion of eligible home renovation expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.
•Will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.
•Credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings, including houses, cottages, and condominium units owned for personal use.

Ralph Evans - Agent Profile

This agent profile piece will appear in tomorrow's edition of the Etobicoke Guardian...

(click picture to increas size)



Ralph

New Listing - 30 Burlingame Rd Toronto

Just listed today...

30 Burlingame Road, Toronto

Enjoy The Sun Pouring In! This Spacious 3 Bedroom Home Is In Top Ready-To-Move-In Condition. Strip Hardwood Floors Have Been Refinished. Situated On A Quiet Street Near Browns Line & Horner Ave This Home Provides Easy Access To Schools And Parks. Close To Sherway Gardens, Cloverdale, H-427 & Q-E-W. Easy Access To Downtown/ Or Airport. New Furnace(2008), Stove(2009), Roof(2000), 100-Amp Electrical Service. Pre-Listing Home Inspection Report Available.

Includes: Fridge, Stove, Washer, Freezer, All Light Fixtures And Window Coverings. Recently Painted. Detached Single Garage Plus An Extra-Long Driveway With Space To Park Up To 6 More Vehicles.

See Virtual Tour

Available through
Ralph Evans
Sales Representative
RE/MAX Professionals Inc., Brokerage

Office 416 236-1241
Direct 416 577-5486
My website the RE/MAX RealEstateHelpDesk

Toronto Real Estate Prices for December 2008

Here is my monthly Toronto real estate statistics review for the month of December 2008. The level of activity, or volume of sales was very low for the month of December. This is not really very surprising. Consumer confidence in the whole economy is down and people are holding-off making major purchases, with a home being the most major of them all! At the same time, December is traditionally the slowest month of the year for real estate sales. However, this year was still significantly below the level of last year.

On the pricing side, the average prices across the GTA declined by 1.9% from the month before. This is always a tricky number to nail down, given the fluctuations in the price ranges of homes being sold. More or less high-end homes can really skew this number. However a 1.9% price decline is probably fairly accurate read on the market place. This also puts us 9.2% below the market peak of May 2008.

So what does all this mean? Well we are firmly into a buyer's market. This is the time to be buying. There are lots of homes on the market to choose from, less competition from other buyers, more motivated sellers, great prices, super-low interest rates and a keen willingness from the banks to extend mortgages to people with jobs. For home sellers, there are good opportunities to sell a home so long as it is in the best condition and priced to the market. We are not seeing the multiple offer frenzy of a couple of years ago. Now any offer not matter how low is appreciated by home sellers.

Here is my monthly chart...



Be sure to check out my previous post, the 2008 annual review too!

Buying, selling investing - Ralph is here to help!
www.RealEstateHelpDesk.ca
Call me at 416 577-5486 or contact me at ralph@RealEstateHelpDesk.ca

2008 Toronto Real Estate Annual Statistics

The numbers are in for 2008. Here is a look at the really big picture! There were 74,552 home/condo sales in all of 2008 across the Greater Toronto area, as recorded by the Toronto Real Estate Board. This level of activity is well down from the volume of the prior couple of years. The average price over the whole year was $379,347 compared to the 2007 average of $376,236 - that's an increase of about 0.8%.

Here is a chart to put it all in perspective...

Toronto Condo Rental Statistics

Canada Mortgage and Housing Corporation (CMHC)published an excellent review of the rental market in the Greater Toronto area.

They report an overall shortage of rental units in Toronto. The portion of interest to me is that the rental suites provided by individual investors through offering their condo suites for rent, is a key component of the supply. In Toronto core the rental occupancy as fallen to about 1.0% having been as high as 5% a few years ago.

Fewer purpose-built rental buildings are being built in Toronto.

Read the whole report here.

I can help people to rent out their Toronto condo suites and I help tenants find excellent condo suites to live in.

Toronto Real Estate Prices for November 2008

Don't believe everything in the media. Don't get the wrong news about real estate home prices in Toronto as of November 2008! It's time to check the real numbers.

For November 2008, the Toronto Real Estate Board monthly statistics report stated that there were 3,640 sales in November 2008 and that the average monthly sales price across the GTA was $368,582.

(Click on chart to see it in a larger size)

So what does this mean? Sales are down by 50% from the level of activity at this time last year. Prices are down 6.4% from a year ago, but wait, prices are actually up 4.4% from the $352,974 average of the month prior! Wow! Who is reporting on the rising home prices in the GTA?

Now is a great time to be a home buyer in Toronto. Given the reduced number of sales right now, there are some great opportunities for buyers. It is not a good time to be a seller hoping to maximize the value of their home. Sellers are not seeing a lot of showings happening on their homes and they are not seeing many offers or multiple offers. The only people selling their homes right now are pretty motivated home sellers. They wouldn't be selling if they didn't need to be. Thus, sellers are happy to see any offer that comes their way and are going to find a way to make an offer successful.

Now is the time for action if you have the ability to buy, without selling first. perhaps you are renting and wondering when to buy into real estate. Perhaps you are an investor that owns and rents out properties. Now is the time to be taking advantage of the market opportunity. Not six months to a year from now, right now!

Let me know how I can assist you. I'm here to help. www.RealEstateHelpDesk.ca
Call me at 416 577-5486 or contact me at ralph@RealEstateHelpDesk.ca

RE/MAX 2009 Market Outlook

This week RE/MAX published its annual market outlook for the coming year. If you are interested, I'll let you download the whole report and read it for yourself.


Focusing on RE/MAX's outlook for Toronto Real Estate in 2009, the forcast is for a modest decline in home values by 2% to an average selling price of $376,000, along with a decline in the number of homes being sold coming down by 5% to about 75,000 homes next year.

If you want to have this report explained to you in more detail, please let me know, I'm here to help!

Toronto First Time Buyer Course from RE/MAX

Buying your first home can be a difficult and confusing process. There is a huge amount of knowledge you need to know or be aware of, in order to make a successful home purchase.

I enjoy having the opportunity to explain the process to first time home buyers, to take away the mystery and show them that it really can be easy and fun to find that first perfect home.



If you are looking for the information to make your first purchase of a condominium or house a success? Get the assistance of the Toronto RE/MAX Real Estate Help Desk. Ralph Evans
is a modern, professional RE/MAX agent comfortable explaining the process to others.

Meet with Ralph Evans at your home, office or at his office for a persnalized first time buyer course, just for you!

This free presentation will provide you with the knowledge you need to successfully purchase your first home. You will learn about the various choices of home styles you can choose from. The differences between condominiums and freehold homes. The characteristics of townhouses, semi-detached, and detached homes.

You will learn about the financial aspects of home ownership. You will see how mortgages work and how to calculate what you can afford. You will find out about the special programs available to you to help make home ownership as affordable as possible. You will see what other costs you'll need to consider. You will find out where to go to get the best possible mortgage rates and how to lock in those rates, while you look for a home.

You will find out about the many advisors you will need to complete the purchase of your home. You will understand the role of the real estate agent along with the home inspector, the lawyer, the mortgage broker and the insurance agent.

Get all your questions and concerns answered.

If you do want Ralph's help to look for the perfect home with you, that would be great too! I'm here to help. www.RealEstateHelpDesk.ca
Call me at 416 577-5486 or contact me at ralph@RealEstateHelpDesk.ca

Market Commentary from Michael Polzler - RE/MAX Ontario-Atlantic

Michael Polzler, who is the Executive Vice President and Regional Director for
RE/MAX Ontario-Atlantic Canada Inc., published the following commentary on the real estate market...


Toronto Real Estate Board stats for October created some heated dialogue in the industry in recent weeks. While many believe that the dismal statistics reflect the recent volatility in financial markets, some are now asking if they also identify an emerging trend in the Greater Toronto Area.

The simple answer is no. Although there are some serious negative factors influencing the marketplace, one month does not make a market. We need several consecutive months of momentum – one way or another – before we can really determine the direction of the market.

Make no mistake. 2008 has presented our industry with challenges across the board. Unit sales are down 16 per cent from one year ago, hovering at approximately 70,000, while average price at $380,654 is up marginally over year–to–date figures for the same period in 2007. And the prognosis will get worse before it gets better, considering the new land transfer tax rate implemented in January, 2008 artificially inflated housing values during the fourth quarter of 2007. Average price hovered close to $400,000 in October, November, and December of last year – which will be the measuring stick in the months ahead.

Clearly, market conditions have shifted in favour of the buyer. There are more homes listed for sale than one year ago and houses are taking longer to sell. Our forecast for 2008 – released in October of 2007 – said as much.

Sellers are adjusting to new market realities – albeit reluctantly – while buyers are taking it all in. Some are sitting on the fence, waiting for housing values to fall further or interest rates to decline a percentage point or two more. The courageous are jumping into the market, taking advantage of lower prices, greater selection, and less competition.

For those that are trading in the same market, it’s all relative. Sellers may get less than they thought for their homes, but they’ll also pay less on the other side of the transaction. With market conditions stabilizing, first–time buyers now have the luxury of time in making their housing decisions. They also have greater purchasing power than they had one year ago – and their dollar will go much farther.
Unlike other investment vehicles, residential real estate serves two purposes. It’s still considered an investment, but it is also a roof over your head. We know from past experience that housing appreciates at a rate of five per cent annually. It’s cyclical, so it may rise and fall, but the risk involved will never be as steep or as serious as in the stock market, where the value of your portfolio can drop 30 per cent overnight and some of your stocks can fall to 0. You also can’t live in your mutual fund.

Real estate in the Greater Toronto Area has faced many challenges over the years but continued to experience steady growth. In 2009, there are some announcements that are expected to have a positive impact on the housing market and they are as follows:

1. The Bank of Canada has indicted that lending rates may fall further in 2009.

2. Federal government intervention in the form of a $75 billion mortgage purchase from the CMHC will free up additional credit.

3. Measures will be introduced by both the Federal and Provincial government to bolster the economy. In Ontario, that could mean a bailout package for the ailing manufacturing sector.

4. A lower Canadian dollar – hovering at 85 cents American – may provide a much–needed boost to manufacturing.

5. Job employment rates continue to hold steady in the GTA, despite upward momentum at the provincial level. The unemployment rate was 6.8 per cent in October, down from 6.9 per cent in September.

6. Population in the GTA continues to grow through migration, with 60,000 plus households expected to form in 2009.

Last, but not least, we must remember that the Greater Toronto Area generates about 10 per cent of the country’s total wealth – that’s comparable to what New York, Chicago, Boston, and San Francisco make to the US economy. There’s no question that we are a world–class city – in a have–not province. We may be in for some challenges over the next six to nine month period, but we should see clear signs of recovery by late 2009. The good news is that lifecycle events will continue to occur, whether real estate is experiencing a bull or bear market.

Sincerely,

Michael Polzler
Executive Vice President and Regional Director
RE/MAX Ontario-Atlantic Canada Inc.

Do you want some personal guidance on what opportunities exist for you in today's market? Please contact me by email or through my website.