The Canadian Real Estate Association (CREA) released its REALTOR.ca app
for the Apple® iPhone®. The free REALTOR.ca app is provided at no cost to
consumers by Canada’s 100,000 REALTORS® and more than 100 real estate
Boards and Associations.
The app provides users with the features and functionality of REALTOR.ca
and takes advantage of Apple iPhone device features, such as:
• Properties Near Me – get up-to-date property information, photos and
driving directions;
• New Listings Near Me – recent listings in the area you’re visiting;
• Open Houses Near Me – find open houses near your present location;
• My Agent – Contact either your agent(s), or the listing agent for more
information about a specific property;
• Property Search – Search for houses and properties across Canada, and
connect with REALTORS® to view, buy or sell a property;
• Personalized settings allowing the user to set default language, unit of
measure, how properties are displayed, and search radius for “Near Me”
searches;
• Interactive BING mapping is embedded to allow focus on specific neighbourhoods;
• Scheduled Open Houses can be added to the device’s calendar.
With the addition of the Apple iPhone app, REALTOR.ca is now available for
two of the most popular handheld device operating systems, as the Windows Phone 7® version was released in November. A BlackBerry app will be
released in February 2011.
A setup guide has been posted online at www.crea.ca.
Monday, January 31, 2011
Wednesday, January 26, 2011
Real Estate Red Flags
By: Colleen Kane
 |
ZenShui | Sigrid Olsson | PhotoAlto | Getty Images |
As potential homebuyers begin wading back into a battered real estate market, it’s helpful to know how to evaluate properties, especially foreclosures and houses that may have stood abandoned. Is that fixer-upper really such a bargain?
Dwight Martin, a master homebuilder and the owner of DK Martin Custom Homesemphasizes hiring a home inspector, because whether the home is new or old not all problems can be spotted by the untrained eye — or even a relatively trained one. When his daughter bought a home, he inspected it but also called a friend, who requested the furnace number and the model. The house’s furnace had been recalled due to a carbon monoxide issue. “That was something I never would have known so we had the seller test the furnace,” says Martin.
“Often times the cost of the home inspection won’t be as much as the benefit you’ll get from the seller in fixing something they found. When people say, ‘I can’t afford an inspector,’ what if he finds your furnace needs to be replaced?”
But before you even get an inspector involved, there can still be warning signs that a house is a questionable choice. If you see numerous “for sale” signs throughout one neighborhood, it’s best to find out the reason for the mass exodus. Notice if the house smells either bad or too artificially good (this could be an indicator of an air freshener being used to cover up a moldy smell). Make an effort to notice those little things that could mean a lot, such as rodent droppings in the cabinets.
There’s one former red flag that may no longer apply. Before, a house lingering a long time on the market was often considered a bad sign, but now it can just be a sign of the economic times.
Lack of maintenance
Home inspector Reggie Marsten, owner of the D.C.-based REM Home Inspections says his number-one red flag is a lack of maintenance.
“When I first pull up to a home, even before I get out of my vehicle, I'm scanning the house for a sense of what I'm getting into. “I'm looking at the roof—what condition is it in? Is there vegetation growing in the gutters from not being cleaned, does the house need paint, is there damaged or missing trim and siding? Are the shrubs in front neatly trimmed or do they look wild, has the grass been cut? Chances are if the exterior of the house looks somewhat rundown and unkempt then the interior is also in the same condition.”
Water damage
“When I think of big problems in houses, I think of water, or too much moisture in the house,” says Martin, adding that one indicator of that danger is when the ground around the house is sloped toward the house instead of away, which can lead to a flooded basement. He also cautions to make sure the bathrooms have adequate ventilation, and checking the attic or crawlspace to make sure there’s no mold or mildew.
Regional concerns
Martin, who builds homes in the Puget Sound region, notes that houses situated on water are more exposed to the weather and have different storage needs, and buyers there have to consider whether houses are raised high enough.
Other locations bring different key home features into play, and it’s good to know regulations specific to your region. In areas that get extreme heat or cold temperatures, energy efficiency takes on more importance. If it’s an older house, it might not be well insulated, and it may have single pane glass. Because of new technologies and energy codes, new homes are much better at keeping the heat in winter and keeping it out in summer.
Structurally, homes are being built much stronger, such as with seismic design and construction, notes Martin. “On the West Coast, we have very strict rules so the homes will hold up much better in earthquakes. In the Gulf States, they’re much stronger for hurricanes.”
House age and period-specific issues
There are positives and negatives for both new and old houses. Older homes might show quality craftsmanship on a more consistent basis, but might need to be adapted for today’s lifestyles, such as installing modern sound systems or upgrading the kitchen to current preferences.
For Marsten, the age of a house can be his red flag number two. “Age itself is not a problem with a home if it's been maintained and upgraded. All components of a home have a life expectancy; 20 years for a standard asphalt shingle, 12 years for a hot water heater, 15 years for an air conditioner. If I'm in a house that's 22 years old and find the original roof, hot water heater, furnace and air conditioner and kitchen appliances then I have to inform my client that they will need to budget to replace all the components that are past life expectancy.”
Homes built in different eras have different hidden potential dangers characteristic of their period, Marsten said. “In our quest to build houses quicker and cheaper over the years, products were used that didn't receive adequate testing, or at the time they were used the long term exposure ramifications weren't known.” He cites the following examples:
- Homes built in the early 1900s used lead water lines.
- Homes built from the 1920s until the 1970s utilized lead- and asbestos- containing products.
- Homes built in the 1960s to the present contain products that give off volatile gases (hurricane Katrina HUD trailers for example).
- Some homes that were built from the mid 1970s to the present utilized defective water lines that fail.
Avoid raising flags
Marsten advises that purchasers do as he does: “Just take a few minutes, stand across the street from the house their looking at and just scan the exterior looking at the roof, gutters, siding, trim and shrubbery looking for anything that doesn't look normal or out of place.”
Compare the home to others in the area, he says. Does the home look better than the others, the same, or worse? Keep in mind everything that needs to be painted, repaired, adjusted, tweaked, or replaced has a dollar sign attached to it and those dollars can add up very quickly, Marsten says.
“You can also tell when the owner let the house run down and then slapped a coat of paint on it to sell it, the, "lipstick on a pig" syndrome. Lack of maintenance can't be hidden.”
“Well-built is an indication of professionalism and craftsmanship, unfortunately two traits that are rapidly disappearing with today's builders and replaced with speed and profit,” says Marsten “I call it ‘good bones’ if the house has been constructed structurally sound, that is; square, plumb and level that's 75% of a well built house, the remaining 25% is maintenance.”
© 2011 CNBC.com
Monday, January 24, 2011
Moving into a new rental unit at the end of the month? Here's how to make it your own
Make your rental your own
Renting isn't always forever
We're always calculating when we move into a new home, especially if it's a rental. How long will I stay? How much money do I want to sink into a place I don't own? Is it really worth it to pay an electrician to install my chandelier?
Renters are notoriously frugal. They're willing to endure a few months or years with a disagreeable bathroom faucet if they believe the mantra: "I could be moving soon." Those five words are the leading cause of renter inertia, a condition that typically manifests itself as "milk crate as bookshelf syndrome."
So get over it. Unless you're a completeascetic willing to come home to blank walls and bare light bulbs, read on for tips on how to personalize, individualize and make your rental your own — even on a budget.
Plan before you move
"If I was going to rent," says Jennifer Randall, a Seattle designer and member of the American Society of Interior Designers, "I would be bringing my camera and snapping crazily before I moved in."
Randall says she is a big believer in planning. With photos in one hand to remember the specifics — from wall colors to window locations — and a tape measure in the other hand, Randall churns through her furnishings to determine what will fit in a new place and what won't.
Measure, measure, measure is the maxim of most designers.
"You want to make sure that your furniture fits through the doors and around the corners and that there's enough wall space for your artwork," Randall says. "Designers do the math."
But before you hammer a nail into the wall, review your lease documents or talk to your landlord to see what you can and cannot do. For example, does your lease permit you to change window treatments, replace light fixtures and paint the walls?
Color can make a world of difference
We all have an emotional, often-unconscious response to colors. Shades of yellow may connote cheerfulness, while browns may imply an earthy warmth.
If you can paint your walls, choose colors that pop, distract, soothe and confirm who you are and that make you comfortable in your own nest. Even an accent wall here and there can personalize a space.
A great place to work with accents is the kitchen. Pick an accent color or two and match it to your smaller appliances, such as your blender and toaster, as well as your dish towels. That small effort goes a long way. Bowls of fruit and flowers add rich, organic warmth. Patterned and colorful fabrics in pillows, throws and wall hangings add another dimension to a room.
Furniture with feeling
Familiar furniture, particularly pieces that have sentimental value, such as your grandmother's retro sofa, are a surefire way of getting comfortable in your new space quickly and making your mark.
Experts caution not to go overboard with pieces from the big home-furnishing chains, however. Those stores are great places to get inexpensive tables and chairs, but relying too heavily on chain-store furnishings could depersonalize your new home.
Designer Jennifer Randall suggests modular bookshelves, which can add character and personality.
"If you are a reader, you can line a room with inexpensive, component bookshelves to make a room look more like a library," she says.
These shelves are movable and show off your literary tastes.
Light and shadow
Light fixtures in rentals are often sad and generic. Purchasing and installing a distinctive chandelier, for example, can make a dramatic statement. Just remember to reinstall the original fixture before you move.
Great lighting, even in a subpar room, has an impact. Creatively using light and shadow to highlight your library or your family photos is an inexpensive way of putting your signature on a design. Floor-up lighting or backlighting also can add drama.
On the other hand, nothing expresses indifference more profoundly than cheap bathroom fixtures that cast poor light. Remember, you'll be gazing in the mirror every day. Consider style and utility when illuminating the bathroom. And get rid of those hideous, old-school, institutional fluorescent bulbs that cast everyone in a pallor. Environment-friendly illumination has come a long way since the 1970s.
Rugs redefine your rental
Blasé flooring and featureless, wall-to-wall carpeting are standard in rental units. After all, durability usually trumps design for most cost-conscious landlords.
Using area rugs, even over the carpeting, can transform a room by adding color, texture and warmth, as well as practicality.
Rugs can cover old, mismatched floors. They also can define areas such as conversational spaces and can be runners that lead from the entrance. You can always take rugs with you when you move.
You can rent your artwork, too
An inexpensive way of getting wonderful original art into your new home is to rent it. Several museums around the country, for example, have established galleries that rent paintings, sculptures and photographs at reasonable rates, often with options to buy.
You can find art-rental galleries in most major cities. The beauty of the arrangement is that you are often helping struggling artists without sinking a ton of money into purchases. You also can swap out your art every month, if you're so inclined.
To put a face on your space, literally, display photos of your friends and family. That warms up a room and draws the attention of your guests. Pictures are a great way for people to learn a little about you and for you to reveal more about yourself. So by all means, show off those vacation photos of you swinging in a hammock on a Tahitian beach. But don't go overboard.
Statement pieces
Art can be of a more personal and sentimental variety.
"Having familiar things around you is a wonderful thing, even if it's something from your childhood," designer Jennifer Randall says. "One of my friends had an old weird toy; it was one of those metal cars that you can ride in from the 1950s. It was on the entry table with two lamps, and it was wonderful."
Designers encourage their clients to exhibit their collections, from old apothecary jars to Guatemalan masks — anything that shows your interests helps personalize and define your space. More important, display objects that put a smile on your face.
Room dividers
Personalization is one thing. Privacy is another.
Part of the personalization challenge, especially in a small rental, is managing space so that your whole life isn't on public display. You don't want to see an unmade bed the moment you step through the door, and your guests don't, either.
Portable dividers are an inexpensive way of creating separation and organizing your space. Residents of studio apartments and lofts can use movable dividers to create the illusion of separate rooms.
You can find room dividers made of different materials with distinct designs, colors, shapes and sizes. A quick Web search will find decorative dividers made of Scandinavian spruce, shoji screens, Venetian dividers and other styles that can match your decor.
Bring the outdoors in
A frequent complaint of apartment dwellers is that they don't get to experience nature as often as they'd like. But even if your rental is in a leafy neighborhood, plants and flowers can provide a welcome respite from the rigors of modern life.
Houseplants are a great way to bring some nature into an urban setting and to put your horticultural mark on your place. There is something instinctually heartwarming about having leafy plants and bunches of flowers in your home. They not only accent a room, they also can provide an additional design dimension: fragrance.
Thursday, January 20, 2011
Full Service Real Estate is Here to Stay
| Richard Robbins is one of the worlds best and most successful motivational speakers in the world. Here is what his thoughts are on the CREA deal with the Competition Bureau. Since the ratification of the agreement between CREA and the Competition Tribunal on October 24, 2010, there has been a tremendous amount of “buzz” from the public, the press and the real estate industry in general, speculating on the impact this agreement will have on organized real estate as we know it. For what they are worth, here are my thoughts. First, it is interesting to note that what some people perceive as a threat, others perceive as an opportunity. Generally speaking when change occurs (and change will occur), there will be some people who view change as a threat because the status quo is being challenged; while others will view change as an opportunity because the status quo is being challenged. I think it probably goes without saying that I perceive change as a tremendous opportunity. I read an article recently in Canadian Business Magazine, and the leading question in the article said this, “Travel agents and stockbrokers are nearly obsolete thanks to the Internet. Are real estate agents next?” (View Article Here) The article is daunting and might have some believe that real estate agents are going by way of the dodo bird. But here is what I know. The media loves change, they love something juicy to talk about and they love to create drama and instil fear. However, DO NOT believe for a moment that they are right. Full service real estate is here to stay and here’s WHY. The buying and selling of a home is nothing like buying or selling stocks or booking a holiday. Our home, 99% of the time, is our most valuable asset. It is where we are going to live, raise a family, become friends with neighbours, build a community, go for walks in the evening, sleep peacefully at night and create some of our most cherished memories. Part I of II: The Value of a Selling Agent If I am going to sell my most valuable asset, it makes logical sense that I would want to hire a highly qualified real estate professional who can: 1) Provide expert advice to maximize my equity through proper pricing models, home staging concepts and marketing strategies that create demand, increase showings and expose my home to the most amount of qualified buyers. 2) Negotiate every detail on my behalf, and in my best interest, to net more money from a sale. 3) Create peace of mind and the least amount of inconvenience by qualifying all potential buyers before they come through my home as well as ensure all buyers are escorted by a licensed real estate professional. (I have no interest in taking calls from deal-seeking buyers calling private for sale by owners and then allowing complete strangers into my house) 4) Handle all details and provide professional advice until closing. Stay tuned for Part II: The Value of a Buyer Agent on our next blog. In reality, does the agreement create an opportunity for some agents and companies to capitalize on listing homes on MLS for a small fee or lower fees with assisted sales services? Does it create more options for the buying and selling public? The answer is yes, however, this is just good old-fashioned competition and there’s nothing wrong with healthy competition. Competition requires us to sharpen our skills and forces us to get crystal clear in the communication of our value while raising the bar on our level of professionalism. This is indeed a huge opportunity for the real estate industry. Until next time, make it count. Rich source: http://www.richardrobbins.com |
Monday, January 17, 2011
New Mortgage Rules Breakdown
Today Canada’s finance minister Jim Flaherty announced new mortgage rules. There has been a lot of confusion regarding what this means for everyday people, especially new home buyers.
Here is the main breakdown:
Concern over rising debt in the average Canadian household prompted these changes. It consists ofthree things:
- A reduction in the maximum amortization period from 35 years to 30 years. This means when applying for a mortgage a buyer can run that mortgage out for a MAXIMUM of a 30 year period instead of the old maximum of 35 years. The result of this means payments will be higher only for individuals who would have used the full 35 year period.
- When re-financing your home, you are now only allowed to borrow 85% of the homes value. This is down from 90% previously.
- Ottawa will WITHDRAWAL government insurance backing on lines of credit secured by homes
The average Canadian resale home sold for $344,551 in December. Assuming a five-year mortgage at 4 per cent interest, and the minimum 5 per cent down payment of $17,227, a 35-year mortgage would have monthly payments of $1,441. Shorten the amortization period to 30 years, and the monthly payment increases to $1,555.
These rules are meant to allow Canadians to save more of their money instead of paying more interest over the long run. It is also meant to reduce the overall debt of Canadians which has been steadily rising.
All of these changes will be implemented 60 days from today. If you still would like a 35 year amortization period, you have until then to secure one.
HOW THIS AFFECTS YOU:
- If you are new time buyer and want to purchase a home, the maximum amortization period you have to choose from is now 30 years. It essentially means your payments will be higher, however more of that money will go towards the price of your home instead of interest to the bank.
- If you currently own a property and wish to re-finance it, the maximum amount of money you will get is 85% of the value of that property. This is a 5% drop from current rules. So if your home is worth $400,000 the MAX amount of money you can receive is $340,000 (or 85% of $400,000)
FICTION: All first time buyers will have to put 15% down on new homes.(This is not true at all. The 85% rule only applies to people re-financing their current home and does not affect first time buyers whatsoever).
Wednesday, January 12, 2011
Why, how and when to babyproof a home
Babies and toddlers are curious creatures. Something captures their attention — a stuffed animal, a shiny object or a noisy rattle — and they’re going after it.
Just make sure they aren’t chasing a teddy bear on top of a dresser, the blade of a knife or a pill bottle.
Babyproofing is key to keeping children safe at home.
“Parents should realize that injuries are the leading cause of death in children over one year of age,” and many are preventable, says Dr. Garry Gardner, chairman of the American Academy of Pediatrics’ Committee on Injury, Violence, and Poison Prevention. The most common injuries are burns, cuts, bruises, and head and other injuries from falls, he says.
For generations, new parents made homes baby-ready themselves. These days, you can do it yourself, hire a professional or both. It’s part of a larger trend toward more watchful, safety-conscious parenting.
“Using professionals saves time and gives peace of mind, but diligent parents are capable of babyproofing their own homes,” says Shannon Choe, who offers home safety assessments as founder of Premier Baby Concierge in Berwyn, Pa. She says her clients are about evenly split.
New parents have some time before they need to babyproof, since newborns aren’t going anywhere just yet. But time passes quickly. Experts recommend staying ahead of a baby’s development by a milestone; for instance, blocking the top and bottom of the stairs before a child’s on the move.
Eventually you’ll need to lock up cleaning products, medicine and plastic bags, clear the house of choking and strangulation hazards (including the cords of drapes and blinds) and block access to dangerous areas, among other things.
Furniture or TVs that could topple should be anchored to the walls. Toddlers might use dresser drawers “like stepladders,” and an accident can happen in an instant, says Colleen Driscoll, executive director of the International Association for Child Safety, a professional organization for baby- and child-proofers that was founded in 1997.
Proofers may be called for a top-to-bottom job or just to install a single gate, she says.
“Most of our clients aren’t very comfortable drilling holes in their own home and they usually have us do that,” says proofer Jack Smith, founder of Dallas-area InfantHouse. “Some of the lighter installation they can elect to do themselves.”
Professionals are familiar with safety products and can determine which ones are right for a home, saving parents multiple trips to the store, Driscoll says. Pros also can teach parents about dangers they might not think of.
“Children grow and develop very quickly, and sometimes parents are caught off guard in what they’re capable of doing,” Driscoll says. “We want them to understand and be ahead of their children before they find the trouble.”
The cost of professional babyproofing varies. Smith charges US$100 for a room-by-room consultation and product recommendation, which clients receive whether they hire the company to do the installation or not.
To babyproof an entire 371 square metre (4,000-square-foot) house — the average size of his clients’ homes, he says — he charges US$3,000 to US$4,000, while a single-storey ranch smaller than 186 square metres (2,000 square feet) would cost around US$800. The prices include products and installation.
To take on the task yourself, experts recommend the age-old trick of dropping to all fours and looking for hazards from a child’s vantage. To learn what you’re looking for, check online sources such ashealthychildren.org, babyproofing checklists and do-it-yourself books.
“People say it’s very easy if you have the right tools,” says Debra Holtzman, author of “The Safe Baby” (Sentient Publications, revised edition 2009). “It is overwhelming if you have no guidance.”
Her book offers chapters on nursery, kitchen and bathroom safety, and preventing falls. No matter who does the safety improvements, she urges parents to pay attention.
“If someone else does it for you and you’re not involved, you may not have skills to do it later on,” she said.
Parents should research products, and choose those certified by the Juvenile Products Manufacturing Association, Holtzman says.
Avoiding products recalled by the government is also important. Check government recall sites or sign up on the site to be notified when recalls are issued, Holtzman says. And send back product registration cards to be notified of company recalls.
Once the home is proofed, don’t put your feet up for long. Safety experts suggest reassessing periodically because the hazards change as a child grows.
“It’s wonderful to watch them grow and learn ... but their own natural curiosity can do them in if you’re not setting some boundaries,” says Choe.
And gates, latches and locks are no substitute for a parent’s watchful eye. As Holtzman cautions: “No child safety device is 100 per cent perfect.”
Tuesday, January 11, 2011
Ontario approves rent Increase
From OREA's January 2011 issue of Queen's Park Plus
Landlords in Ontario have been given permission to raise rent by 0.7 per cent in 2011 – the lowest
rent hike for Ontario residents in the last 35 years.
The guidelines provide the maximum amount a landlord is able to hike the rent without getting
approval from the Landlord and Tenant Board.
The government says this year’s guidelines for increasing rent are sitting at the lowest level in the
history of Ontario rent regulation.
The annual rent increase guideline is based on the Ontario Consumer Price Index (CPI).
The Consumer Price Index is released monthly by Statistics Canada and is widely regarded as a
reliable and objective measure of inflation
Landlords in Ontario have been given permission to raise rent by 0.7 per cent in 2011 – the lowest
rent hike for Ontario residents in the last 35 years.
The guidelines provide the maximum amount a landlord is able to hike the rent without getting
approval from the Landlord and Tenant Board.
The government says this year’s guidelines for increasing rent are sitting at the lowest level in the
history of Ontario rent regulation.
The annual rent increase guideline is based on the Ontario Consumer Price Index (CPI).
The Consumer Price Index is released monthly by Statistics Canada and is widely regarded as a
reliable and objective measure of inflation
Friday, January 7, 2011
Toronto Real Estate Market Statistics
Table of Contents | |
| Resale Sales VolumeThis first set of charts depict various aspects of the volume of sales of resale homes in the greater Toronto market. | |
| Average Selling PricesThese sets of charts depict variation in average selling price for single family dwellings historically and by month comparing 2010 to 2009 | |
| Inventory of Homes For SaleThese charts depict trends in the numbers of available homes for sale. | |
| Home Sales By Type/PriceThese charts break down recent sales according to type of property and price. |
2011 Market Forecast From Remax Condos Plus
If December is the annual ‘year in review’ month, then January is ‘predictions’ month. My broker (aka The Big Boss Man) over at Remax Condos Plus, Jamie Johnston, has put out his 2011 forecast for the downtown condo market. Here it is below for your reading enjoyment. Of particular note: Jamie now believes that the pre-construction market is now nearly 100% investor-driven. Love to hear your thoughts on this:
2010 IN REVIEW:
At the start of 2010, we predicted that the year would be made up of two parts: a strong first half with no real estate bubble and a drop off from July onwards. Other forecasters picked up on our theme and started to sing the same song by May and June. As the fall market continued to rack up monthly year over year decreases of 20%, we told you that the market had already bottomed in August but the experts were still predicting a serious decline. With that as a background, we are more bullish for 2011 than most of the experts who believe that Toronto sales will decline by 5% in 2011, which means back to 2004 levels! We also don’t believe that prices are overvalued by 10-25% as international experts keep claiming. Our pet peeve is that most experts keep talking about national markets, where real estate is localized, and prices can vary significantly between neighbourhoods and condo buildings.
WHAT TO LOOK FOR IN 2011:
First we believe that Toronto real estate in 2011 will be ‘steady’ and decidedly unexciting for those who want wild swings in prices and sales volumes. Mortgage rates will fluctuate in a narrow band. Governments heading into elections are unlikely to announce more taxes for consumers, and the economy will slowly gain strength in the Toronto Region which will mean both reported ( and the growing unreported) incomes will be higher. Power of Sale or Foreclosure sales will be minimal (unlike the U.S.) hence there will be no downward pressure on prices.
What makes the downtown condo market unique is that there are really two components: the resale market and the pre-construction market. The resale market is dominated by end users. The pre-construction market is almost entirely investor driven. Over the past year, the investor mix has switched to mainly ‘all cash’ buyers from Asia and the Middle East.
Downtown condo prices are still relatively cheap versus other areas of Canada and other major cities in the world. On the other hand, condo rentals rates are currently too low to attract certain investor types to the pre-construction market. This will lead to a levelling off on pre-construction prices and a spill over into the resale market which historically is $50-100 per sqft lower than pre-construction.
WHAT TO EXPECT IN 2011:
- Toronto resale volumes will be the same as in 2010. Prices will increase by 5%. The best time for buyers will be in the first quarter of this year. Most experts will not recognize the strength of the real estate market until the third quarter.
- The downtown condo market will see sales increasing by 10% and prices up by 3-5%. Condo rental rates will increase by $100 per month on average. The current vacancy rate for rental condos is under 1% and for apartments it is about 2%. Condos are renting in 10-15 days on average. Expect that trend to continue.
- Bigger condo units are now selling at the same price per sqft as smaller ones. Going forward, two bedroom plus units will sell for more per sqft than one bedroom units.
- More and more units will be sold by Assignment rather than resale as investors of pre-construction units opt to sell rather than to rent out their units.
- Until rental rates increase, the price of pre-construction condos downtown will stall at $700 per sqft. The ceiling for resale units appears to be $600 per sqft. Both markets are very active in the $500-550 per sqft range.
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