Toronto Real Estate and Neighbourhoods Blog | Move Smartly

Canada's House Price Index Down 5.5% From Peak

John Pasalis in Toronto Real Estate News

Canadian home prices fell 2.4% in January 2009 led by declines in Calgary (-8.2%) and Vancouver (-4.2%).  The Teranet-National Bank House Price Index showed a modest decline in house prices in Toronto (-2.4%) and price appreciation in Montreal (4.1%), Ottawa (2.1%) and Halifax (1.2%).

National house prices are down 5.5% from their peak in August 2008 with Toronto showing a 6.1% drop from its peak.

 

Thumbs down on offensive Illinois law

Bob Aaron in Legal

A new American law set to take effect June 1, 2009 will require anyone selling a residential property in Cook County, Ill. – which includes Chicago – to provide a thumbprint or fingerprint.

Under the cumbersome moniker of the Cook County Residential Real Estate Conveyance "Thumbprint Pilot Project" Public Act 95-988, the unstated purpose of the law is to combat real estate and mortgage fraud.

The legislation was quietly passed last October while public attention was distracted by the election campaign of Barack Obama and an ongoing corruption investigation, which eventually led to the removal of governor Rod Blagojevich.

In Illinois, unlike Ontario, signatures on transfers of real property must be witnessed by a notary public. Under the new law, notaries will be required to create a record of the signatures, which includes the names, addresses and photo ID of the parties to the document, and a thumbprint or fingerprint of the property seller.

Media Roundup March 27th 2009

Media Roundup

Real Estate News

What's selling? Who's buying? (Globe and Mail)

Another burden for homeowners (Globe and Mail)

Blended tax drives up costs for both new and resale home buyers in Ontario (Canadian Press)

Canada home prices fall 2.4 pct in January -report (Reuters)

Lenders seek Ottawa's aid as thousands risk losing their homes (Globe and Mail)

Real estate watchdog charges two brokers (The Toronto Star)

CMHC Launches Campaign to Help Homeowners (CNW)

Couple should save, take advantage of house deals (Globe and Mail)

Miller critics seek to halve property tax hike (Globe and Mail)

US Real Estate News

U.S. new home sales rise unexpectedly (Globe and Mail)

Economic News

Canadian Business Optimism Rises from Cyclical Low (CEP News)

Urban Planning and Neighbourhoods

Lakefront plan gives pedestrians top priority (The Toronto Star)

City approves six new condo towers (National Post)

It’s Queens Quay, except nicer (National Post)

Waterfront Toronto announces Queens Quay plan (Toronto Star)

Regional Canadian Real Estate News

Home price drop sharpest in Calgary: report (Natonal Post)

Perhaps Health Canada should review UFFI ban

Bob Aaron in Legal

Over the last 18 months, approximately 700 older homes in Ontario have been insulated with a product containing urea formaldehyde foam insulation, or UFFI.

The problem is that the use of UFFI has been illegal in Canada since it was banned in December 1980 under the Hazardous Products Act.

Once Health Canada became aware of the recent problem, it issued an advisory informing consumers that RetroFoam of Canada Inc. imported and illegally sold a urea formaldehyde-based thermal insulation under the name RetroFoam.

Health Canada also issued a "cease and desist" letter to RetroFoam of Canada Incorporated, the Canadian importer of the insulation, to stop all importation and sale of the product in Canada. Health Canada also instructed Enerliv, the Canadian distributor of RetroFoam, to stop all sale, advertisement and further installations of the product and to call back any unused product.

In addition, RetroFoam, RetroFoam of Canada Inc., and Enerliv were placed on Canada Border Service Agency's automated system target list to prevent any future importation of this product. As a result of Health Canada's actions, RetroFoam is no longer available for sale or installation in Canada.

Media Roundup March 20th, 2009

Media Roundup

Real Estate News

Home sales fall 31 per cent (Globe and Mail)

Increases in foreclosure rates create buying opportunities (Globe and Mail)

Toronto's Sony Centre condo tower set for spring (Globe and Mail)

Canada's dirty subprime secret (Globe and Mail)

There's no secret subprime mortgage problem in Canada (Vancouver Sun)

Real estate: Has spring sprung? (National Post)

Decline in Toronto housing sales and prices slows (Globe and Mail)

Infill builders out cold (Globe and Mail)

Posted Rates Drop to All-time Low (Canadian Mortgage Trends)

US Real Estate News

U.S. home building surges (Globe and Mail)

Economic News

IMF shifts outlook, expects contraction (Globe and Mail)

Merrill slashes economic forecast (Globe and Mail)

Urban Planning and Neighbourhoods

New Canadians flock to better life in suburbs (Toronto Star)

Toronto street vendors to offer ethnic dishes (Globe and Mail)

In Markham, the dream of an urban village that never was (National Post)

Regional Canadian Real Estate News

Tail-end of the B.C. housing tailspin looms (Globe and Mail)

Toronto Real Estate Sales Picking Up Mid March

John Pasalis in Toronto Real Estate News

The Toronto Real Estate Board reported 2,565 transactions in the first half of March 2009, a 19% drop from the 3,183 transactions reported during the same period last year.  For those who haven't been keeping an eye on Toronto's real estate market, a 19% decline is a significant improvement over the close to 50% decline in sales we were seeing just a few months ago.  But as I mentioned in a previous post (see A Closer Look at Toronto’s Real Estate Market), the sales performance for March 2009 is going to look better than it really is because of the poor sales in March 2008. 

Prices are down by 5% across the Greater Toronto Area with the City of Toronto showing a 3% decline and the 905 Region a 7% drop.

 

Here's TREB's press release:

2009 Tour For Kids Ontario

Realosophy News

Few people earn their springtimes as Canadians do.  After a particularly gloomy winter, Torontonians are heading outdoors to run, climb and ride for worthy causes (see the Globe's list of fundraising events). 

Realosophy’s own programmer extraordinaire, Kris Kasias, is training to cycle the 200 km Tour for Kids Ontario in support of children living with cancer.  In August, participants will traverse hundreds of kilometers over a 2- or 4-day ride into cottage country.  Funds raised will help support innovative camp programs for children with cancer.

For more details on the 2009 Tour For Kids Ontario, please visit Kris' campaign page.

Legislation carries some scary powers

Bob Aaron in Legal

As part of its green energy legislation, the McGuinty government is poised to shred the right to privacy that all citizens enjoy in their lawyer's offices – solicitor-client privilege. It is described in a 2001 decision of the Supreme Court of Canada as being "fundamental to the justice system in Canada."

Late last month, Ontario Energy Minister George Smitherman introduced Bill 150, the Green Energy and Green Economy Act. It makes an energy audit compulsory for the sale (and some leases) of every residential property in Ontario.

I was very critical of these proposed audits in last week's column, calling them an unprecedented and unnecessary government intrusion into the free marketplace.

But the energy audits are not the only offensive part of the legislation. Last week I heard from my colleague Peter T. Fallis, a lawyer in Durham, Ont. Fallis sounded the alarm about the scary inspection powers contained in Bill 150.

Media Roundup - March 13th 2009

Media Roundup

Real Estate News

Canadian New Home Prices See Sharpest Decline Since 1991  (CEP News)

Canadian Housing Starts Continue to Fall as Demand Softens (CEP News)

Selling your condo presents unique difficulties (Globe and Mail)

Slumping markets take toll on realtors (Toronto Star)

New home prices fall as builders 'burn off inventory' (Globe and Mail)

New home prices fall on sluggish Western markets (CTV)

Drop in house prices driving first-time buyers to take the plunge (Canadian Press)

First-time buyers eye house bargains (Toronto Star)

Housing slump at half-way point: Royal LePage (Toronto Star)

Ontario lawyer disbarred over real estate deal (Globe and Mail)

Alberta leads home price declines (Globe and Mail)

Mortgage penalty can be a shocker (Toronto Star)

Home builders proceed with caution (Globe and Mail)

Economic News

IMF Praises Canada's Prudence and Response to Financial Crisis (CEP News)

IMF dashes hope of short recession (Globe and Mail)

TD predicts 10% unemployment rate (Globe and Mail)

This recession will be different (National Post)

Urban Planning and Neighbourhoods

On this midtown street, it’s still Christmas (National Post)

Richard Florida, one-trick pony (National Post)

Condo Critic: Thoroughfare thoroughly suburban (Toronto Star)

Spacing presents the Toronto Town Buttons (Spacing)

A Closer Look at Toronto’s Real Estate Market

John Pasalis in Toronto Real Estate News

The recent slowdown in Toronto’s real estate market has left many people wondering where the market is heading leading up to the busy spring season.  Taking a look at a few key real estate statistics will give us a better idea of what’s going on in Toronto’s housing market.

For the first two months of 2009 we saw fewer sellers bring their houses on the market.  New listings are down by over 10% when compared to the previous year. 

Sellers who don’t have to sell are likely waiting for the market to pick up before they put their house for sale.  Sales declined by roughly 50% from October 2008 to January 2009 which resulted in a relatively high number of unsold homes on the market.  The inventory of homes available for sale in 2009 is up by 24% over the previous year.  High inventory levels are likely one of the key drivers behind the slowdown in new listings.