Toronto Real Estate and Neighbourhoods Blog | Move Smartly

Real Insight: Making Sense of Real Estate Statistics

John in HomeBuying, Money, Toronto Real Estate News, Real Insight

Ed note.  Real Insight is a periodic feature decoding some of the many mysteries surrounding HomeBuying.

Some of our readers might recall that the Toronto Real Estate Board (TREB) announced that August 2007 was the 5th consecutive record-breaking month for resale home sales in Toronto. But a recent Globe and Mail article titled “Soaring prices dampen August home resales” probably left many of those same readers wondering what’s really going on in the housing market. Were home sales on the rise in August, or did they slow down? Understanding how real estate statistics are reported will help you get a better idea of what’s actually going on in your market.

One of the first things you should be looking for when reading housing statistics is the geographic area that the statistics cover. In the case of the TREB announcement for August, the statistics were strictly for Toronto and the GTA whereas the Globe and Mail article was reporting on national housing statistics. The local numbers give HomeBuyers a better idea of what is going on in their specific market whereas national statistics give you a better understanding of the overall health of the Canadian real estate market.

Real Insight: How to Take Title - Sole Ownership, Joint Tenancy and Tenancy in Common

Rachel in HomeBuying, Legal, Real Insight

Ed note.  Real Insight is a periodic feature decoding some of the many mysteries surrounding HomeBuying.

Any number of factors can influence your decision to purchase property – you are finally ready to move out of the frat house, you and your spouse are buying your first home or perhaps your best friend found the investment opportunity of a lifetime and needs a partner.  Whatever the reason for the purchase, how you choose to take title is a key element of the real estate deal to consider.  Taking title refers to the ways in which you can own property, and there are different ways.

Real Insight: Protecting Yourself Against Real Estate Fraud

Rachel in HomeBuying, Legal, Real Insight

Ed note.  Real Insight is a periodic feature decoding some of the many mysteries surrounding HomeBuying.

When you purchase your home, you are purchasing ownership of the property, also referred to as title.  You may have heard the expression ‘good and marketable title’ or ‘clear title’ and these are set against the concept of ‘bad title’ or having a ‘cloud on title’.  Good, marketable and clear title is what you, the HomeBuyer, want from your purchase transaction.  Ensuring that this is what you will get is the responsibility of the people who comprise your real estate team - your real estate agent, your home inspector, your appraiser and your lawyer. 

Real Insight: Is the 40-Year Mortgage Bad News for Canadian HomeBuyers?

John in Money, HomeBuying, Real Insight, In the News

Ed note.  Real Insight is a periodic feature decoding some of the many mysteries surrounding HomeBuying.

Last weekend’s National Post featured an article which questioned whether or not 40-year amortizations for mortgages are good for consumers. The key argument against long amortizations was that consumers end up paying significantly more in interest over the life of a mortgage. But is this increase in interest payments enough of a reason to put off your home purchase?  The bottom line is not as simple as some media headlines would have us believe.

How has the 40-year amortization helped HomeBuyers?

While there is no doubt that longer amortizations are costlier overall, the 40-year amortization mortgage has helped first-time HomeBuyers jump onto the property ladder in the first place. The longer amortization means that HomeBuyers have more time to pay off their mortgage and, as a result, can afford to spend more. To see this in action, consider this example: a family earning $60,000 a year with a $20K down payment would be able to afford a $236,000 home with a 25-year amortization. Bump the amortization up to 40 years and the same family can now afford a home worth $273,000. Housing options in the $236,000 range are scarce in the City of Toronto, but with a budget of $273,000, the door of opportunity widens slightly.

Real Insight: Do You Need an Agent if You are Buying a Home Privately?

John in Real Insight, HomeBuying

Ed note.  Real Insight is a periodic feature decoding some of the many mysteries surrounding HomeBuying.

A couple I know was recently given the opportunity to purchase the house they were renting before their landlord put it up for sale. When they called me to discuss the situation, I quickly gathered that Jenny and Jim were eager to purchase, and as new HomeBuyers, they were understandably anxious to save a little bit of money as well. So, the prospect of a private sale (for sale by owner) seemed promising.

Real Insight: Condominium Conversions

Rachel in Legal, Condos, HomeBuying, Real Insight

Ed note.  Real Insight is a periodic feature decoding some of the many mysteries surrounding HomeBuying.

A very dear friend of mine recently found and purchased a condominium unit near the area of Yonge and Eglinton.  It is beautiful, spacious, and really looks like it deserves to be called a loft.  This was a condominium conversion project, meaning that the building was formerly used in a non-residential capacity, and has been divided into individual units for sale. 

Real Insight: The Long and Short of Interest Rates

John in Real Insight, Money, HomeBuying

Ed note.  Real Insight is a periodic feature decoding some of the many mysteries surrounding HomeBuying.

Earlier this month, I came across a Globe and Mail article on interest rates which concluded with these words of advice from CIBC senior economist Benjamin Tal:

[HomeBuyers]…should be aware that as the spread between long- and short-term rates moves closer together, the difference between fixed and variable mortgages is probably negligible.

Now, I don’t know about you, but most of the HomeBuyers I know don’t have the time or motivation to read through old Economics 101 textbooks in order to really grasp what Mr. Tal is getting at.  So, leaving aside some of the finer points in Mr. Tal’s overall assessment of the Canadian economy, I thought it worthwhile to discuss the point raised above as it pertains directly to HomeBuyers.