james metcalfe's real estate update 06,11
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JUNE 2011
VOLUMES AND PRICES STRONG IN MAY
A total of 10,046 homes were sold in the GTA during May - up 6% versus May 2010. This result was the second best on record for May in the history of the Toronto Real Estate Board. The market was buoyed by positive economic news and by continued low borrowing costs. The following is a brief breakdown of volume performance by major dwelling types:
Dwelling Units Ann’l % of Type Sold Growth TotalDetached 4,993 +8% 49.7%Condo Apt 2,215 +4% 22.0%Semi-Det 1,132 ±0% 11.3%Condo TH 810 +9% 8.1%Freehold TH 697 +10% 6.9%
The average selling price of a resale home in the GTA in May increased by 9% to $485,520 and established yet another new record price for the TorontoMLS® system. Continued excellent resale prices are being fueled by both strong demand and by very tight supply. In fact, the number of new listings in May 2011, at 16,076, was down 15% compared to last year. Overall active listings, at 18,481, were down by a whopping 27% versus the previous year. Homes were on the market for an average of just 23 days. All in all, a clear-cut seller’s market has emerged in recent months and will continue in the absence of a major influx of new listings.
GTA RESALE HOME SALES (UNITS SOLD) - MAY
6,0004,000 8,000 10,000
2009
2011
2008
2010
GTA RESALE HOME SALES (AVERAGE PRICE) - MAY
$350,000$300,000 $400,000 $450,000
2009
2011
2008
2010
James Metcalfe BROKER
416-931-4161
JAMES METCALFE’S REAL ESTATE UPDATE
PAGE 1
MarketNews
Royal LePage Real Estate Services Ltd.Johnston & Daniel Division, Brokerage
477 Mount Pleasant Rd., Toronto, ON M4S 2L9
What type of new central air conditioner should I buy?
Look for the Seasonal Energy Efficiency Rating (SEER) for the unit. A high SEER indicates a more energy efficient air conditioner. New air conditioners sold in Canada have SEERs ranging from 10 to 17, with 17 being the most energy efficient and 10 being the least.
The type of refrigerant used in the unit should also be a consideration. The two types of refrigerant available are R-22 (freon) and R-410A (puron). Until recently, freon was the only type of refrigerant available in air conditioners. However, freon contains chlorine compounds which, if released into the atmosphere due to normal wear and tear or equipment failure, destroy the ozone layer and contribute to global warming. Recent international agreements have created a plan to cease production of freon in the next few years. This has already effectively reduced the world supply of freon, driving up its cost to the consumer. Puron does not contain the same ozone depleting properties as freon. Both the freon and puron air conditioning systems are available, however the benefits of installing a puron system should be evaluated when considering repairing an older system or installing a newer system.
What can I do to maintain my air conditioner in good working condition?
Here are a few suggestions:
• Inspect, and clean/replace the blower fan filter (usually located in the return air duct at the furnace) every 2 months, or as recommended by the manufacturer,
• Vacuum or brush clean the outdoor coil to keep it clear of dirt, leaves and grass clippings. The coil can be carefully
cleaned with a garden hose after debris is vacuumed off,
• Both the blower fan and outdoor fan should be cleaned and lubricated where applicable, following manufacturer’s instructions, and
• If there is a humidifier damper, make sure it is closed for the summer to reduce the unnecessary addition of moisture-laden air to the home.
If, after completing these suggestions your air conditioner is performing poorly, you should hire a qualified contractor to undertake a more thorough servicing, such as checking the refrigerant level or making electrical or mechanical checks and adjustments. As with all mechanical equipment, regular servicing by a qualified contractor in accordance with manufacturer’s specifications is recommended.
Can an air conditioner be tested for proper operation at any time?
No. Unfortunately there are some limitations to when air conditioning systems can be tested, or damage to the compressor may result. Air conditioning systems should not be tested when the outdoor temperature is below 18ºC or has been below 18ºC in the past 24 hours, or when the power has been on for less than 12 to 24 hours. Under these circumstances, refrigerant in the compressor can mix with lubricating oil, providing poor lubrication and potentially resulting in seizing the compressor. Given that compressors are the most expensive component to replace on an air conditioner, it is important to not to operate them during the above noted conditions.
This article was contributed by AmeriSpec Canada, a leading Canadian home inspection company. Please visit them at www.amerispec.ca
Answering your air conditioning questions
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House Smart
Personal Finance
It is surprising at the number of people who don’t take the time to pre-approve before they go out home shopping. As a mortgage consultant, it is a terrible feeling to have to tell people who have entered into a conditional purchase and sale agreement that they will not be able to secure financing for the property they have finally selected. When you pre-approve, you have nothing to lose and everything to gain.
If you are in the market for a new home and need to determine what you can afford to shop for, then now is the time. In today’s mortgage market, some lenders are offering to hold mortgage rates for up to 120 days while you shop for your new home. Many will also match the builder’s rate cap program if your home does not close within a 120-day period. That’s not the only plus - it gets even better.
When you pre-approve with a lender, you are automatically guaranteed an interest rate no greater than the rate for which you are pre-approved. At the same time, if interest rates go down after you pre-approve, you are usually given the benefit of that lower rate. To put it more simply - the financial institution with which you pre-approve is going to pay the costs of you playing the interest rate game.
The fact that the financial institution bears the risk of interest rate fluctuations is only one of the benefits that a pre-approval has to offer. By pre-approving with a good lender or mortgage consultant, you learn about what you need in the way of income verification, down payment, credit rating, and mortgage products. You learn to understand the benefits of going with a short or longer term. You learn what incentives and kickback programs there are in the market, and which mortgage products will best meet your needs.
Be prepared before you talk with your mortgage professional. The following is a list of all the necessary information you will need to secure home financing:
a. Be prepared to have your employer give you a letter on company letterhead outlining your name, position, gross annual income, and number of years employed with the company.
b. If self employed, three years financial statements, and tax returns (together with official assessment from Canada Customs and Revenue).
c. Social Insurance Number(s)
d. At least 3 years’ history of residences and employers.
e. Know your banking information (i.e., institution’s name, address, type of accounts, account numbers).
f. Know your assets and their value (i.e., cash amounts, stocks, bonds, RRSPs, car).
g. Know your liabilities (i.e., car loan, credit card balances).h. Always let the lender know any past credit problems you may have had. Many people have them, but just be sure you can give an exact recount of the details surrounding any late payments.
Don’t be the next person to go home shopping only to discover you are not qualified, or that you could be getting your dream home now. Talk to your mortgage broker or lender and get the peace of mind offered by a pre-approval.
This article was contributed by Calum Ross, a prominent Toronto-based mortgage consultant. Please visit him online at www.calumross.com
Benefits of mortgage pre-approvals
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“The horse is here to stay but the automobile is only a novelty - a fad.” – The president of the Michigan Savings Bank advising Henry Ford’s lawyer not to invest in the Ford Motor Co., 1903
“There is practically no chance communications space satellites will be used to provide better telephone, telegraph, television, or radio service inside the United States.” – T. Craven, FCC Commissioner (USA) in 1961 (the first commercial communications satellite went into service in 1965)
Here are a couple of housing-related government programs that you should be aware of, either for yourself or perhaps for a family member, or for someone else you know.
First-Time Homebuyers’ Tax Credit (FTHBC)
This federal program offers first-time homebuyers a 15% tax credit for closing costs, to a maximum of $5,000 of closing-related expenses (that’s a total benefit of up to $750). These expenses include items such as legal fees and land transfer taxes. Here are a few other details of this program:
It is applicable to first-time buyers purchasing a home which closed after January 27, 2009.
The FTHBC is claimable for the taxation year in which the home was acquired.
An individual is be considered a first-time buyer if neither the individual nor the individual’s spouse, or common-law
partner owned and lived in another home in the calendar year of the purchase, or in any of the preceding four calendar years.
Air Conditioner Rebate Program (Gov’t of Ontario)
Consumers are eligible to receive a $500 rebate when they replace an inefficient central air conditioner with a new ENERGYSTAR® qualified system. There is also a $50 rebate for those who have their central air conditioner tuned up by a registered participating contractor, and a $75 rebate on the supply and installation of a programmable thermostat. For more information, please call 1-888-668-4636.
By the time you read this, here’s hoping that our very tardy summer will have finally arrived! As usual, your client referrals are both highly valued and much appreciated. Until next time, take care!
PEARLS OF WISDOM
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 © 2011 Mission Response Inc. 416.236.0543 All Rights Reserved. D191
James Metcalfe BROKER
416-931-4161 [email protected]
Royal LePage Real Estate Services Ltd.Johnston & Daniel Division, Brokerage
477 Mount Pleasant Rd., Toronto, ON M4S 2L9
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