Low-Rise Homes Drive Higher-Rising Prices

Information courtesy of the Toronto Real Estate Board.TREB

While Toronto’s residential home sales were down in the month of August, the average selling price rose to $479,095 – an almost 6.5 percent increase compared to the same time last year.

The annual rate of price growth was driven by the low-rise home segment in the City of Toronto, including single-detached homes with an average annual price increase of 15 percent.

“While sales were down year-over-year in the GTA, so too were new listings. As a result, market conditions remained quite tight with substantial competition between buyers in the low-rise market segment,” said Jason Mercer, Toronto Real Estate Board (TREB) Senior Manager of Market Analysis. “The trends for sales and new listings are moving somewhat in sync, suggesting that the

relationship between sales and listings will continue to promote price growth moving forward.”

TREB President Ann Hannah, addressing the fact that residential transactions were down in August 2012 compared to August 2011, suggested the stricter mortgage lending guidelines that came into effect in July, coupled with relatively higher home prices, together with the upfront cost associated with the City of Toronto’s Land Transfer Tax, all played roles in the decrease.

Wondering about the value of your current home? Curious about other house and condo prices in your area? Even if you’re not planning to move at the moment, but are interested in local market activity, please remember that you’re always welcome to call for a no-obligation real estate update.

SaLeS & aveRage PRice By MajoR HoMe TyPe

AuGuST 2012 SALES AvERAGE PRICE416 905 Total 416 905 Total

Detached 706 2,323 3,029 $746,300 $564,571 $606,929

Yr./Yr. % Change -19% -7% -10% 15% 7% 8%

Semi-Detached 219 471 690 $540,204 $390,421 $437,961

Yr./Yr. % Change -22% -9% -13% 11% 4% 6%

Townhouse 258 804 1,062 $418,548 $351,201 $367,562

Yr./Yr. % Change -13% 6% 1% 11 % 4% 5%

Condo Apartment 1,072 440 1,512 $349,489 $275,150 $327,856

Yr./Yr. % Change -22% -24% -22% -4% 2% -2%

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Recine Team ReportCompliments of Melanie & Fabio RE/MAX Premier Inc., Brokerage

Each office is independently owned and operated.

Melanie Maranda Recine &Fabio Recine

Sales Representatives

"It's your callCall Melanie and Fabio"

RE/MAX Premier Inc., Brokerage9100 Jane Street, Bldg. L, Suite #77Vaughan, ON L4K 0A4

Office: 416-987-8000Fax: 416-987-8001Direct Melanie: 647-836-4062Direct Fabio: 416-828-5441mmaranda96@hotmail.comfrecine@trebnet.comwww.RecineTeam.ca

Greetings! You’re receiving thisnewsletter with hopes that you find itinformative and entertaining.

If you’re thinking of making a move, orare just curious as to real estate trendsin your area, please feel free to call atany time. It’s always good to hearfrom you!

Best wishes,

Melanie and Fabio

Volume 8, Issue 10

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Did you know indoor air quality is often worse than outdoor air? It’s actually not surprising when you consider that just about everything in our homes – from the carpet under our feet to the paint on our walls, and the products we clean with to the adhesives in our furniture – contains toxic chemicals that emit volatile organic compounds (VOCs) like benzene and formaldehyde into the air we breathe.

Many people buy expensive air purifiers to combat poor air quality and help mitigate the health risks thereof, but why not use plants, Mother Nature’s own air purifiers? Not only do plants convert carbon dioxide into oxygen, they filter toxins like those mentioned above from the air, turning them into plant food. They also emit mold inhibitors from their leaves and add humidity to the air, helping combat respiratory problems and allergies. Plus, houseplants are actually more effective than commercial purifiers at filtering pollutants from the air, they don’t require electricity to do their job, and they add to, rather than detract from, the aesthetics of your décor.

Here are some tips to help your houseplants be the most effective natural air purifiers they can be: choose organic houseplants grown without pesticides; pot them in containers not made of plastic; allot one plant for every 100 square feet, avoid placing them in areas where they’ll be susceptible to drafts and temperature fluctuations; use a damp cloth to keep their leaves, which absorb the toxins, free of dust; and remember, the healthier the houseplant, the more potent a purifier it is.

While all houseplants are helpful in removing toxins from the air, some are especially effective. Below are a handful

of top performers whose names you’re probably already familiar with.

Areca Palm: An excellent natural humidifier, these are a striking addition to interiors due to their height.

Bamboo Palm: Fast growing, these air-moisturizing plants are great for combating dryness.

Boston Fern: Considered the most efficient filtering plant overall, these thrive in humidity.

Dracaena: Particularly effective at removing trichloroethylene, dracaena come in all shapes, sizes and colors.

English Ivy: Great for those who suffer from asthma or allergies.

Peace Lily: Easy to grow and unique due to their beautiful white blooms.

Philodendron: Effective in filtering high concentrations of formaldehyde, these require little attention.

Rubber Plant: Tough and requiring little light, these excel at filtering formaldehyde.

Spider Plant: Fast growing and resilient, these are ideal where carbon monoxide accumulates (e.g. kitchens, near fireplaces).

Snake Plant: Nearly indestructible, these are great in bedrooms as they produce oxygen at night.

(Note: Many plant species, including some listed here, can be toxic to pets or people if ingested, so choose carefully.)

The Purifying Power of PlanTswith an especially hot summer behind us – during which the need for air conditioning no doubt had many

people keeping their windows and doors closed – and with winter just around the corner, now seems like a

good time to talk about how to improve your home’s air quality with household plants.

Seeking ApprovAl

volume 8, issue 10 3

What’s one of the smartest things you can do to

ensure your next home purchase goes smoothly

and quickly? get pre-approved for a loan before you

start shopping. Here are five ways a pre-approval

may benefit you.

Settling for leSS

Statistics have shown that the average selling price of a FSBO home is significantly lower than the average selling price of a home sold with the help of a professional real estate representative. Why do so many FSBO sellers make less money on their home sale than they would have if they’d worked with a real estate licensee?

As do-it-yourself sellers tend to factor in sentimental value when establishing their asking price, and because they don’t have access to the information needed to assess their home’s market value (like comparable sales statistics), many FSBO sellers overprice their properties, which is the top reason why many FSBOs fail to sell.

In addition, FSBO sellers often don’t have enough time or money to devote to marketing their property, nor do they necessarily have access to the Multiple Listing Service® (MLS®). This means a lack of exposure to buyers, as well as to real estate professionals who use the MLS® to find homes for the clients they represent.

A home that’s overpriced and underexposed isn’t going to generate much interest and, as such, won’t attract as many offers. As a result, the property lingers on the market, and as the FSBO seller becomes increasingly desperate to sell, their asking price gets slashed ever lower.

If you want to sell your home more quickly, for more money and with far less work, call your real estate sales representative!

Homeowners are often tempted to sell “by owner,” thinking they’ll make more money on the sale by not having to pay anyone a commission. But going the fSBo (for Sale By owner) route could actually end up costing you – literally.

Pre-approval means knowing how much your lender is likely to let you borrow, allowing you to narrow your search to those properties that are within your budget rather than wasting your time looking at homes you can’t afford. This means a more efficient home-hunting process for you.

Being pre-approved allows you to shop around with the peace of mind that comes from knowing that you won’t have to worry about your purchase falling through at the last minute and losing out on your next dream home, due to your inability to secure a mortgage loan.

The loan approval process takes time. Wait until you’ve made an offer to get approved and you might lose the home to a pre-approved buyer who can close faster than you, especially in a fast-moving market. Pre-approval means being able to act more quickly when you find the right home.

As a pre-approved buyer, you’re in a stronger position at the negotiating table because you can assure the seller you’re serious about buying, as well as assuring them of a faster closing and that their sale won’t fall through because you couldn’t secure financing.

You’ll have a good idea of interest rates before you’re ready to buy. If you find you don’t qualify for a low interest rate, you’ll know that before you start shopping, so you can adjust your price range accordingly.

Tackling a fixer-upper can be a very rewarding experience, but it’s not for everyone. Is it for you? To help you decide, below are some pros and cons of buying a house that needs work.

Pros Most buyers want move-in ready homes, so you’ll likely face

less competition from other house hunters for a fixer-upper.

Houses needing work are often significantly cheaper; there’s usually more room for negotiation when it comes to price.

Purchasing a house in need of significant improvement can be a great way to buy into a neighborhood that would otherwise be too expensive to move into.

A fixer-upper allows you greater flexibility to customize your new house to your liking – every renovation is a chance to do things your way, instead of living with the seller’s choices.

Cons Turning around a fixer-upper requires a great deal of time

and know-how. If your life is already busy and/or you have little to no renovation experience, you may not be suited for the task.

Renovating can be very stressful, disrupting your life for months at a time, depending on the work being done – especially because renos tend to drag on longer than anticipated. It may be more inconvenience than you’re willing to put up with.

Depending on the nature of the repairs that need to be made, renovating might not increase the house’s value enough to be worthwhile. “Invisible” improvements such as structural, plumbing, or electrical repairs, for example, may not pay off in terms of resale value.

Rooms foR ImpRovement

Terminology TipGood Faith Estimate — A document that

lenders typically provide to prospective

borrowers. It lists all closing expenditures,

fees and estimated costs of the mortgage

loan, including but not limited to the

lender’s origination fee, attorney closing

fees and appraisal fees, plus estimated

prepaid expenses (i.e. property taxes)

and costs for inspections, preparation

of documents and title insurance.

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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 any damages resulting from the use of the published information. This newsletter is provided with the understanding that it does not render legal, accounting, or other professional advice. Not intended to solicit properties or businesses listed for sale and agency agreements in place with other real estate brokers. Whole or partial reproduction of this newsletter is forbidden without the written permission of the publisher. © Market Connections Inc.® 2012, Phone: (800) 387-6058.

www.RecineTeam.caMelanie Direct647-836-4062

Fabio Direct416-828-5441

Fabio and Melanie RecineSales Representatives

Compliments of Fabio & Melanie Recine RE/MAX Premier Inc., Brokerage