andrea morrison’s july 2018 quarterly market...
TRANSCRIPT
Royal LePage Real Estate Services Ltd., Brokerage 2320 Bloor Street West, Toronto, ON M6S 1P2
for more detailed GTA statistics: ANDREAMORRISON.INFO
To My Valued Clients
for more detailed GTA statistics: ANDREAMORRISON.INFOPearls of Wisdom
PREFERRED CLIENT UPDATE
MARKET NEWSANDREA MORRISON’S
“REFERRALS ARE ALWAYS WELCOME!”
Royal LePage Real Estate Services Ltd., Brokerage 2320 Bloor Street West Toronto, ON M6S 1P2
www.AndreaMorrison.com
ANDREA MORRISONSALES REPRESENTATIVE
www.AndreaMorrison.com
ANDREA MORRISON SALES REPRESENTATIVE
In accordance with PIPEDA, to be removed from this mailing list please e-mail or phone this request to the REALTOR® Not intended to solicit buyers or sellers currently under contract with a broker. The information and opinions contained in this newsletter are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for damages resulting from using the published information. This newsletter is provided with the understanding that it does not render legal, accounting or other professional advice. Statistics are courtesy of the Toronto Real Estate Board. Copyright © 2018 Mission Response Inc. 416.236.0543 All Rights Reserved. K0241
GTA Resale Home Sales
2016 2017 2018
2,000
4,000
6,000
8,000
10,000
12,000
14,000
DECOCTAUGJUNAPRFEB
GTA Average Resale Price
2016 2017 2018
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
DECOCTAUGJUNAPRFEB
• June volume was up by 2.4% versus last year, with all key segments other than condo apartments showing increases
• Market showing signs of fi nally digesting the Fair Housing Plan (Apr 2017) and the OSFI stress test requirement (Jan 2018)
• Average GTA home price also increased in June by 2.0% to $807,871 although the MLS Home Price Index was down by 4.8%
• Prices are expected to continue to increase in the back half of 2018 especially if the number of new listings remains weak
SALES GROWTH RETURNS TO GTA MARKET IN JUNE
MARKET HIGHLIGHTS
JUN 2018 8,082
JUN 2018$807,871
New Listings
19,561Jun 2017
Jun 2018
15,922
-18.6% yearyear
Resale Transactions
7,893Jun 2017
Jun 2018
8,082
+2.4% yearyear
JULY 2018
SUMMER 2018
QUARTERLY
MONTHLY JOHNSON
JULY 2018
BIMONTHLY
BIMONTHLY OLIVEIRA
MONTHLY
JULY/AUGUST 2018
July/August 2018
JULY/AUGUST 2018
BIMONTHLY BREGMAN
MONTHLY SILVER
MONTHLY CRIGGER
July 2018
J U L Y 2 0 1 8
One in four borrowers will renew their mortgage this year, according to the Bank of Canada. Some of these people will find out that renewing has become a whole lot trickier and potentially more expensive, thanks to two important new rules.
The Much-Publicized Stress Test – As of January 1st, the federal government (through the Office of the Superintendent of Financial Institutions or OSFI) made it harder to get a mortgage. It mandated that federally regulated lenders make all borrowers prove they can afford mortgage rates that are at least two points higher than their contracted rate.
This test also applies to existing mortgagors who simply want to change lenders at renewal time for a better rate, however it does not apply to those who decide to renew their mortgage with their current lender. Based on feedback from the major banks, roughly 6-12% of renewers are now trapped by the stress test, meaning that they can’t switch lenders to get a better rate, even though doing so poses no risk to the system.
IFRS 9 Accounting Standard – Also as of January 1st, the IFRS 9 accounting standard took eff ect. With this measure, banks must now set aside additional reserves for mortgages that demonstrate potential credit risk. This could impact 5-10% of existing bank borrowers, according to industry sources.
IFRS 9 requires institutions to reassess a loan’s credit risk periodically. That means many lenders will be re-evaluating borrowers’ credit and loan-to-value at renewal time.
In the past, paying your mortgage as agreed and then negotiating was usually enough to get you a decent renewal rate from your existing lender. However, with these two rules now in place, that will no longer be true for potentially one in ten existing borrowers. Yes, times indeed have changed!
As usual, your client referrals are both highly valued and greatly appreciated. Until next time, take care!
PEARLS OF WISDOM
“A positive attitude may not solve all your problems, but it will annoy enough people to make it
worth the eff ort.” – Herm Albright
“A signature always reveals a man’s character – and sometimes even his name.” – Evan Essar
“Blessed is the man who, having nothing to say, abstains from giving us wordy evidence of that
fact.” – George Eliot
“My investments did so badly this year that I had to switch brokers – from stock to pawn.” – Gene Perret
Imagine closing the deal on a house only to find out the property you fell in love with was the site of a very gruesome crime scene. It’s the kind of stuff that happens in horror movies, but unfortunately it happens in real life too.
These types of properties, ones with sad and unfortunate histories, are known as “stigmatized properties” among real estate agents. There are a variety of reasons a property could be stigmatized. It could have housed a meth lab at one point, it could have been the scene of a murder or suicide, or it could even be haunted.
Because of their dark history, these properties tend to stay on the market for a longer time and if they ever sell, they tend to sell for a lot less than properties with a cleaner past, according to real estate appraiser Barry Lebow in an interview with the Toronto Star.
Some stigmatized properties never even sell at all, especially if they’re the site of a notorious crime. The house of Paul Bernardo and Karla Homolka in Port Dalhousie, Ontario, was purchased by the city and demolished after the trial and conviction.
While some potential buyers might see a stigmatized property as an opportunity to score a rare deal, others may find it too unsettling. According to an online poll conducted by CBC, more than 53% said they would not buy a home where a murder had taken place. One-third of voters said they would buy a stigmatized house while 13% said they weren’t sure what they would do.
While a property’s history seems like a very important piece of information to disclose, sellers and real estate agents aren’t legally obligated to tell potential buyers about any murders or suicides connected to the property. They are only required to disclose any material latent defects affecting the property.
Raymond Leclair, lawyer and vice president of public affairs at LawPro, told the CBC: “From the vendor’s point of view, as long as it doesn’t affect safety or security, there’s really no obligation to divulge. In fact, there’s probably an incentive for them not to because, assuming that there is a stigma, that would affect the price, probably negatively.”
Quebec is the only province in Canada, along with many states in the U.S., where it’s the law for homeowners to reveal any stigma associated with the home. For the rest of Canada, the general sentiment is “caveat emptor” or buyer beware.
To protect yourself, make sure to do your research, read any news articles relating to the property, talk to neighbours, and ask the seller the right questions. Keep in mind that sellers aren’t required to answer your questions directly. If this raises some alarm bells, you can always conduct your own investigation. Your best bet is to work with your real estate agent, who will know what to look for and check for any possible stigmatization of the property.
There’s also one more thing you could do as a buyer: see if you can change your perceptions about living in a stigmatized house. It may be daunting at first but if you love the place - and the price tag is in your favour - then you could be making new memories in the house of your dreams.
This information should not be relied on as legal advice, financial advice or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel or financial representative.
Some people view their bathroom as a sanctuary, while others view it as a, well, bathroom. If you fall into the former camp, there are easy ways to make your bathroom feel more like a spa, and since the practice of self-care and treating yourself is becoming more embraced than ever, you don’t have to feel guilty about putting some time, money, and effort into updating your bathroom. After all, it’s good to invest in your mind, body, and soul. Here are seven ways you can elevate your bathroom without doing any actual renovations.
Install A Rain Shower Head
Switch out your shower head for one that’s round and oversized. This will immediately give you the feeling of being a guest at a Four Seasons spa while still serving its main purpose of keeping you clean and refreshed.
Use A Wooden Bath Mat
Don’t you hate walking into your bathroom and stepping on a damp bath mat? Over time, these mats can harbour bacteria, become discoloured, and give off a permanent stench. For a modern look, replace textile mats with a wooden mat. It’s easier to clean and adds a little Zen to your bathroom.
Upgrade Your Shower Caddy
Caddies are usually an afterthought, but if it’s something you have to look at repeatedly every time you take a shower, it may as well be beautiful. Opt for a shower caddy made of sturdy material such as bamboo or teak. It still keeps your shower essentials organized while bringing a hint of nature into your space.
Showcase High-End Products
If you’ve got a collection of luxury personal products, flaunt them. Whether it’s designer fragrance bottles, premium hand cream, or stylish razor sets, display them on a shelf or counter and keep the basics hidden in your drawer.
Bring In Some Furniture
Treat your bathroom like it’s any other room in your home and add some furniture. Depending on how much space you have to play with, you could add a wooden stool, a cart on wheels, a wicker hamper, or an upholstered bench. This will make your bathroom feel like a place you can stay and relax rather than pop in and out of.
Decorate With Plants And Candles
It’s rare to walk into a spa without seeing a single flower petal, a flickering candle, or a plant, so turn your bathroom into a calming environment by adding in these items. Keep in mind that some plants don’t thrive well in bathrooms where there’s little to no sunlight exposure or where temperatures can frequently fluctuate. The plants that do best in bathrooms include bamboo, aloe vera, orchids, peace lilies, and dracaena.
Add Stones In The Sink
Having an assortment of pebbles in your sink may or may not be practical, but it undeniably adds a spa-like aesthetic to your morning ritual. It’s also a clever way to disguise an unsightly drain or discolouration in your sink, but be aware that dirt can build up easily over time. Opt for bigger rocks for easier cleanup, or only place the stones in the sink when you have guests over.
WOULD YOU BUY A STIGMATIZED PROPERTY?
LEGALLY SPEAKING TRENDY CORNER
MAKE YOUR BATHROOM FEEL LIKE A SPA – WITHOUT
RENOVATING
Imagine closing the deal on a house only to find out the property you fell in love with was the site of a very gruesome crime scene. It’s the kind of stuff that happens in horror movies, but unfortunately it happens in real life too.
These types of properties, ones with sad and unfortunate histories, are known as “stigmatized properties” among real estate agents. There are a variety of reasons a property could be stigmatized. It could have housed a meth lab at one point, it could have been the scene of a murder or suicide, or it could even be haunted.
Because of their dark history, these properties tend to stay on the market for a longer time and if they ever sell, they tend to sell for a lot less than properties with a cleaner past, according to real estate appraiser Barry Lebow in an interview with the Toronto Star.
Some stigmatized properties never even sell at all, especially if they’re the site of a notorious crime. The house of Paul Bernardo and Karla Homolka in Port Dalhousie, Ontario, was purchased by the city and demolished after the trial and conviction.
While some potential buyers might see a stigmatized property as an opportunity to score a rare deal, others may find it too unsettling. According to an online poll conducted by CBC, more than 53% said they would not buy a home where a murder had taken place. One-third of voters said they would buy a stigmatized house while 13% said they weren’t sure what they would do.
While a property’s history seems like a very important piece of information to disclose, sellers and real estate agents aren’t legally obligated to tell potential buyers about any murders or suicides connected to the property. They are only required to disclose any material latent defects affecting the property.
Raymond Leclair, lawyer and vice president of public affairs at LawPro, told the CBC: “From the vendor’s point of view, as long as it doesn’t affect safety or security, there’s really no obligation to divulge. In fact, there’s probably an incentive for them not to because, assuming that there is a stigma, that would affect the price, probably negatively.”
Quebec is the only province in Canada, along with many states in the U.S., where it’s the law for homeowners to reveal any stigma associated with the home. For the rest of Canada, the general sentiment is “caveat emptor” or buyer beware.
To protect yourself, make sure to do your research, read any news articles relating to the property, talk to neighbours, and ask the seller the right questions. Keep in mind that sellers aren’t required to answer your questions directly. If this raises some alarm bells, you can always conduct your own investigation. Your best bet is to work with your real estate agent, who will know what to look for and check for any possible stigmatization of the property.
There’s also one more thing you could do as a buyer: see if you can change your perceptions about living in a stigmatized house. It may be daunting at first but if you love the place - and the price tag is in your favour - then you could be making new memories in the house of your dreams.
This information should not be relied on as legal advice, financial advice or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel or financial representative.
Some people view their bathroom as a sanctuary, while others view it as a, well, bathroom. If you fall into the former camp, there are easy ways to make your bathroom feel more like a spa, and since the practice of self-care and treating yourself is becoming more embraced than ever, you don’t have to feel guilty about putting some time, money, and effort into updating your bathroom. After all, it’s good to invest in your mind, body, and soul. Here are seven ways you can elevate your bathroom without doing any actual renovations.
Install A Rain Shower Head
Switch out your shower head for one that’s round and oversized. This will immediately give you the feeling of being a guest at a Four Seasons spa while still serving its main purpose of keeping you clean and refreshed.
Use A Wooden Bath Mat
Don’t you hate walking into your bathroom and stepping on a damp bath mat? Over time, these mats can harbour bacteria, become discoloured, and give off a permanent stench. For a modern look, replace textile mats with a wooden mat. It’s easier to clean and adds a little Zen to your bathroom.
Upgrade Your Shower Caddy
Caddies are usually an afterthought, but if it’s something you have to look at repeatedly every time you take a shower, it may as well be beautiful. Opt for a shower caddy made of sturdy material such as bamboo or teak. It still keeps your shower essentials organized while bringing a hint of nature into your space.
Showcase High-End Products
If you’ve got a collection of luxury personal products, flaunt them. Whether it’s designer fragrance bottles, premium hand cream, or stylish razor sets, display them on a shelf or counter and keep the basics hidden in your drawer.
Bring In Some Furniture
Treat your bathroom like it’s any other room in your home and add some furniture. Depending on how much space you have to play with, you could add a wooden stool, a cart on wheels, a wicker hamper, or an upholstered bench. This will make your bathroom feel like a place you can stay and relax rather than pop in and out of.
Decorate With Plants And Candles
It’s rare to walk into a spa without seeing a single flower petal, a flickering candle, or a plant, so turn your bathroom into a calming environment by adding in these items. Keep in mind that some plants don’t thrive well in bathrooms where there’s little to no sunlight exposure or where temperatures can frequently fluctuate. The plants that do best in bathrooms include bamboo, aloe vera, orchids, peace lilies, and dracaena.
Add Stones In The Sink
Having an assortment of pebbles in your sink may or may not be practical, but it undeniably adds a spa-like aesthetic to your morning ritual. It’s also a clever way to disguise an unsightly drain or discolouration in your sink, but be aware that dirt can build up easily over time. Opt for bigger rocks for easier cleanup, or only place the stones in the sink when you have guests over.
WOULD YOU BUY A STIGMATIZED PROPERTY?
LEGALLY SPEAKING TRENDY CORNER
MAKE YOUR BATHROOM FEEL LIKE A SPA – WITHOUT
RENOVATING
Royal LePage Real Estate Services Ltd., Brokerage 2320 Bloor Street West, Toronto, ON M6S 1P2
for more detailed GTA statistics: ANDREAMORRISON.INFO
To My Valued Clients
for more detailed GTA statistics: ANDREAMORRISON.INFOPearls of Wisdom
PREFERRED CLIENT UPDATE
MARKET NEWSANDREA MORRISON’S
“REFERRALS ARE ALWAYS WELCOME!”
Royal LePage Real Estate Services Ltd., Brokerage 2320 Bloor Street West Toronto, ON M6S 1P2
www.AndreaMorrison.com
ANDREA MORRISONSALES REPRESENTATIVE
www.AndreaMorrison.com
ANDREA MORRISON SALES REPRESENTATIVE
In accordance with PIPEDA, to be removed from this mailing list please e-mail or phone this request to the REALTOR® Not intended to solicit buyers or sellers currently under contract with a broker. The information and opinions contained in this newsletter are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for damages resulting from using the published information. This newsletter is provided with the understanding that it does not render legal, accounting or other professional advice. Statistics are courtesy of the Toronto Real Estate Board. Copyright © 2018 Mission Response Inc. 416.236.0543 All Rights Reserved. K0241
GTA Resale Home Sales
2016 2017 2018
2,000
4,000
6,000
8,000
10,000
12,000
14,000
DECOCTAUGJUNAPRFEB
GTA Average Resale Price
2016 2017 2018
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
$1,000,000
DECOCTAUGJUNAPRFEB
• June volume was up by 2.4% versus last year, with all key segments other than condo apartments showing increases
• Market showing signs of fi nally digesting the Fair Housing Plan (Apr 2017) and the OSFI stress test requirement (Jan 2018)
• Average GTA home price also increased in June by 2.0% to $807,871 although the MLS Home Price Index was down by 4.8%
• Prices are expected to continue to increase in the back half of 2018 especially if the number of new listings remains weak
SALES GROWTH RETURNS TO GTA MARKET IN JUNE
MARKET HIGHLIGHTS
JUN 2018 8,082
JUN 2018$807,871
New Listings
19,561Jun 2017
Jun 2018
15,922
-18.6% yearyear
Resale Transactions
7,893Jun 2017
Jun 2018
8,082
+2.4% yearyear
JULY 2018
SUMMER 2018
QUARTERLY
MONTHLY JOHNSON
JULY 2018
BIMONTHLY
BIMONTHLY OLIVEIRA
MONTHLY
JULY/AUGUST 2018
July/August 2018
JULY/AUGUST 2018
BIMONTHLY BREGMAN
MONTHLY SILVER
MONTHLY CRIGGER
July 2018
J U L Y 2 0 1 8
One in four borrowers will renew their mortgage this year, according to the Bank of Canada. Some of these people will find out that renewing has become a whole lot trickier and potentially more expensive, thanks to two important new rules.
The Much-Publicized Stress Test – As of January 1st, the federal government (through the Office of the Superintendent of Financial Institutions or OSFI) made it harder to get a mortgage. It mandated that federally regulated lenders make all borrowers prove they can afford mortgage rates that are at least two points higher than their contracted rate.
This test also applies to existing mortgagors who simply want to change lenders at renewal time for a better rate, however it does not apply to those who decide to renew their mortgage with their current lender. Based on feedback from the major banks, roughly 6-12% of renewers are now trapped by the stress test, meaning that they can’t switch lenders to get a better rate, even though doing so poses no risk to the system.
IFRS 9 Accounting Standard – Also as of January 1st, the IFRS 9 accounting standard took eff ect. With this measure, banks must now set aside additional reserves for mortgages that demonstrate potential credit risk. This could impact 5-10% of existing bank borrowers, according to industry sources.
IFRS 9 requires institutions to reassess a loan’s credit risk periodically. That means many lenders will be re-evaluating borrowers’ credit and loan-to-value at renewal time.
In the past, paying your mortgage as agreed and then negotiating was usually enough to get you a decent renewal rate from your existing lender. However, with these two rules now in place, that will no longer be true for potentially one in ten existing borrowers. Yes, times indeed have changed!
As usual, your client referrals are both highly valued and greatly appreciated. Until next time, take care!
PEARLS OF WISDOM
“A positive attitude may not solve all your problems, but it will annoy enough people to make it
worth the eff ort.” – Herm Albright
“A signature always reveals a man’s character – and sometimes even his name.” – Evan Essar
“Blessed is the man who, having nothing to say, abstains from giving us wordy evidence of that
fact.” – George Eliot
“My investments did so badly this year that I had to switch brokers – from stock to pawn.” – Gene Perret