Toronto Real Estate
Homes & Condos For Sale

The stats are in for the end of May. No surprises. Great for sellers but a continuing untenable situation with new listings down and sales up (+19.6% over the same period last year) ... prices have risen by an average of 8.9% across the board.

Click here for May's Housing Market Charts.

The average sale price across Toronto is now $585,204. Up 8.3%.

Not all areas are created equal. In the hot spots (North Riverdale, Davisville Village, North Toronto to name a few) the rise in prices has been dramatically more, fuelled by multiple offers: For May last year and May this year:

For example, North Riverdale: 2013: average price was $746,000 2014: $942,679

Wychwood: 2013: $830,680 2014: $1,053,052

The higher prices are commensurate with the low interest rates. The lowest five year fixed I have seen is 2.35% with Safebridge Financial Group.

In this age of multiple offers, a lot of safeguards (conditions for financing, home inspection) for the buyer go out of the window in an attempt to present the seller with the best offer.

Buyers, more often than not, rely on the home inspection prepared for the seller. It is now expected that for homes with an offer date, there will be a home inspection report available by email, agent to agent.

It is really crucial in this market to know how much you can afford comfortably, so that you are in a position to take out the financing clause in the event of multiples. Even then, the bank needs to appraise. Properties are sometimes selling at $100-$150,000 over a previous similar sale.

It's expected now that offers in a multiple offer situation will be accompanied by a certified cheque as deposit, to be held by the Seller's Brokerage in trust pending closing.

By law, a deposit is to be paid within 24 hours of acceptance of the offer by both parties.

How much? 5% is customary in the city, 2 % will do out in Brampton.

The deposit is a show of good faith on the part of the buyer. The larger the amount, the less likelihood that the buyer will walk away from the sale.

If at all possible, give yourself a couple of days to close your old home later so that the move is not fraught. Bridge financing is not hard to get once you have qualified for your mortgage. This will ensure that you are not waiting across the road with your movers, and their clock ticking, waiting for the sellers to vacate.

By contract, the sellers have until 6 pm on the date due for closing to move out. And sellers, be out by 3 p m so that you truly can leave the home in a broom swept condition.

Make sure that if you are closing at the end of the month you don't pick a Friday! Lawyers are always very busy then. If there is a long weekend and you close on a Friday, good luck!

Selling a Tenanted Home

Do you have a tenant and you are putting your home on the market? I hope you have a very good relationship and can work out a plan for showings. Your Tenant will need to inform their insurance company and make sure all valuables and personal items are locked away or removed for safe storage. You can add a monetary incentive...or have an agreement that you will have the apartment professionally cleaned as long as the home is being shown.

A decent tenant in the basement can be a good selling feature to a first time buyer who needs help paying the mortgage.

Here are the actual rules:

Your tenant must be given 24 hours' notice that there is to be a showing. Understand the term "vacant possession". A seller is responsible for giving the tenant who goes month to month 60 days to vacate. And that notice is served from the first of the month. The tenant has to give written proof that he/she will vacate

There must be a provision in the offer stating that the buyer accepts the tenant until such and such a date.

If your tenant is on a lease, they can stay until the end of the lease even if the buyer plans to extensively renovate or move in yourself.

If the tenant is month to month, there are two forms from the Landlord and Tenant Board that can be used by the seller to obtain vacant possession: Form N12: "Terminate a tenancy at the end of the Term for the Landlord's or Purchaser's own use"

Form N13: "Terminate a tenancy at the end of a Term for conversion, Demolition or Repairs"

Buying a New Condo

I am often asked advice regarding buying a new condo. The best I can give is use the 10 day rescind period to have your real estate lawyer review your Agreement of Purchase and Sale and go over it with you. That way you will be under no illusions as to what is going on. Understand too, that what the builder promises you is not necessarily what you will get! They are able to change the layout, finishes and square footage and provided there is no hardship incurred by the buyer with these changes, they can get away with it. Very important to pick a well-reviewed builder who doesn't use daily jobbers picked up at the unemployment line. Find out what else they have built and check these buildings out, talking to the residents about their experience.

Newcomers to Canada

Many new immigrants are buying within five years of arriving. Owning their own home is very important to complete a sense of belonging to the country. Plus real estate has proved to be the best and safest place to invest money. RBC has come up with a whole newcomer's program. Click here for the full story. There are a few caveats in the small print at the bottom of the article: 20% down payment. Written guarantee from a Canadian citizen other than the buyer that this is to be a first home.

Louisa