1. Nov/Dec 2011real estate UPDATE Your Greater Toronto Real Estate NewsletterMarket reflects consumer confidenceIncrease in listings slows price growth D espite the gloomy financial picture around the world, consumers in the GTA continue to show their confidence in the housing market. Economic and financial market headwinds outside Canada are keeping interest rates lower JOHN HELFRICH Broker for longer, says Gregory Klump, chief economist for the Canadian Real Estate Association (CREA). Those headwinds will likely persist until, and indeed after, fiscal IN THIS Buy Smart. quagmires in the U.S. and Europe are resolved. In the meantime, the Bank of Canada ISSUE Sell Smart. will have ample reason to delay raising interest rates further, which is supportive for the Canadian housing market. Office/Pager: 2 Home insurance How much is enough?Although the number of new listings coming on the market is up by about 14 per cent compared to last year, it is still a sellers market here. Sales are up by almost 25 416-699-9292 john@johnhelfrich.com per cent compared to this time last year, putting us on pace to have the second best year on record for sales (about 90,000). Price growth has slowed as more listings have 2 Happy safe holidays Minimizing the risk of come on the market, but with a home selling for an average of more than $465,000, prices are up by more than 9 per cent on a year-over-year basis.Hallmark Realty Ltd., Brokerage Independently Owned & Operated hazardsExtremely low interest rates and decent job prospects in the GTA are making 2237 Queen Street East Toronto, ON M4E 1G1 consumers confident that they can afford to buy a home. Detached home sales in the City of Toronto are leading the way, up by 30 per cent compared to this time last year and detached home sales in the 905 3 Condo market shows strength areas are up by 27 per cent. Future looks even more The neighbourhoods that saw the largest sales price increases in the first half of this year include Old Mill, Sunnylea, positive Runnymede, Carleton Village and Mimico in the west; Hillcrest, Deer Park and Bennington Heights in midtown; and Riverdale,Old East York, Danforth Mosaic and Blake/Jones in the east. Other Average Home Prices - Septemberneighbourhoods with the largest average price increases include Cabbagetown,in the Greater Toronto AreaMoss Park, The Annex, Christie Pits, Dovercourt and Harbourfront. $500,000 Going forward, we do not expect interest rates to start rising until the $475,000second half of 2012 at the earliest. With price growth slowing from what we saw 2011 $450,000 earlier this year, most analysts believe that the housing market is $425,000 sustainable. If you are thinking of selling your home, there is still time to take2010advantage of the sellers market. On average, homes are selling after 27 days on $400,0002009the market. $375,000 CREA President Gary Morse says, Through their actions, homebuyers are 2008 6,424 8,1966,1387,658showing that they remain confident about the stability of the CanadianSource: TREB Units Sold housing market, and recognize that the continuation of low interest ratesrepresents an excellent opportunity to buy their first home or trade up. REU

2. Monthly salesand average price by areaSeptember 2011Money mattersCentral ..........1,437$581,840East ...............1,780North ............1,624366,655531,718Home insurance How much is enough?West..............2,817 430,079LAugust 2011ooking at all of the severe weather in North America homeowners should insure their houses according toCentral ..........1,395 534,171this year, we have got another reason to bewhat it would cost to rebuild the house if it wasEast ...............1,633 352,186North ............1,653 522,629happy that we live in Toronto and surroundingdestroyed. This is called the replacement value, which isWest..............2,861 427,211 municipalities where hurricanes and heavy storms aredifferent from the real estate market value of your house.July 2011 relatively rare. However, you never know when you mayReplacement costs include all the costs of materialsCentral ..........1,439 555,051East ...............1,791 359,803 need to collect on your home insurance policy.to rebuild your home but there are some other costs youNorth ............1,707 524,803The Insurance Bureau of Canada (IBC) saysmight not have thought about. Some of these extra costsWest..............2,985 434,909could include finding skilled labour, especially if there isJune 2011Central ..........1,925 600,479 an availability problem. You could also run into problemsEast ...............2,214 373,309 with the building code, which has no doubt changed sinceNorth ............2,247 520,788West..............3,844 447,614 your original home was built. Your replacement costMay 2011should be enough to cover these aspects.Central ..........1,836 650,687You should also take a complete inventory of yourEast ...............2,182 365,942North ............2,288 529,906 possessions so you will know exactly what you have lostWest..............3,740 447,047 should disaster strike. You may also have purchasedApril 2011some expensive new furniture or electronics, forCentral ..........1,687 633,667East ...............1,973 370,053 example, that is not covered under your old policy.North ............2,039 517,333If you have made renovations to your home but didWest..............3,342 437,547March 2011not upgrade your insurance coverage, you may beCentral ..........1,799 585,706 under-insured, says the IBC. Visit www.ibc.ca to help youEast ...............2,013 352,226North ............1,974 506,929determine how much insurance you need. REUWest..............3,476 420,437February 2011Central ..........1,306 580,617Home safetyEast ...............1,342 349,940North ............1,285 500,728West..............2,333January 2011418,378 Happy safe holidays Minimizing the risk of hazardsCentral .............803530,176When the holidays arrive, safety issues are and wrapping paper. Make sure they are out of the reachEast ...............1,000 332,396North ...............919487,765 usually the last thing we want to think aboutof children and pets.West..............1,615 400,936as we celebrate the season. But the holidays If you have a real Christmas tree, water it daily. MakeDecember 2010Central .............896554,141 present some unique hazards that should not be ignored.sure it is in a secure stand and well away fromEast ..................992337,675 If you are decorating your home with holiday lights, radiators, heating vents, fireplaces and burning candles. ItNorth ...............873472,405make sure they have been certified by a recognized should not be near a doorway or a high traffic area.West..............1,634 405,935November 2010 organization such as CSA, ULC or C-UL. It seems obvious If you have small children, watch out for smallCentral ..........1,410 553,566 but remember to put outside lights outside and indoorobjects, such as holiday decorations, that you may notEast ...............1,399 339,238North ............1,359 470,799 lights inside. Make sure the light strings, cords andnormally have around the house. Make sure that batteries inWest..............2,342 408,470 extension cords dont have any frayed or exposed wires.toys are inserted properly and that they cannot be removedOctober 2010Do not run electrical cords under carpets or through easily. Do not let children take their battery-operated toys toCentral ..........1,308 589,786East ...............1,471 339,387 doorways where they are a tripping hazard. bed with them. After the gifts are opened, throw out packingNorth ............1,432 478,637 Be careful when using candles. Never leave burning materials such as Styrofoam, ties, plastic bags and wrappingWest..............2,470 408,286candles unattended and keep them away from decorations as soon as possible to keep the kids safe. REUSource: TREB 3. On theinternetInterestingCondo update websitesnationalballet.caMarket shows strength Future looks even more positive /TheNutcrackerThis seasonal classic is aThe GTA condominium market continues to hum per cent were over 75. perfect gem of a ballet. It isalong, driven by low interest rates and A recent report by the Conference Board of Canada traditional yet freshly attunedaffordability. In the City of Toronto, the average says that by 2030, more than 80 per cent of new housingto rhythms and accents of thecontemporary. (Dec 10 - Jan 3).condo apartment price is about 7 per cent higher than at demand will come from seniors. Seniors will be lookingthis time last year, while condo apartments have for smaller, less burdensome housing, boosting demand uknowa.comappreciated by about 14 per cent in the 905 areas. The for multiple housing units, especially condos andGet fast, online bids for youroverall average is about 9 per cent more than this time in apartments. Many seniors want to stay in their currenthome renovations fromcommunities, close to friends and family. That is why licensed qualified local2010, at just over $330,000.contractors.The largest percentage of sales is in the $200,000 to many condo developments are going up in suburban$300,000 price range. You can also get a condo for less areas.getsmarteraboutmoney.cathan $200,000 in a recent month This site promotes unbiased,there were 260 sales in the $100,000 GTA Condo Apartment Market independent financial 2011 vs 2010 Median Prices information. It providesto $200,000 range. Steadyprograms and tools to helpemployment numbers and great310 2011consumers make better2010Median Prices ($ 000s)interest rates are keeping buyers financial and investment300busy; sales are up by about 23 perdecisions.cent compared to this time in 2010. 290canadianwellness.comMore listings are coming on the 280 A comprehensive directory ofmarket and it is expected that pricefitness, diet, health, nutrition270appreciation will slow in the comingand other wellness-relatedmonths. professionals and theirJan Feb MarAprMay June JulyAugSeptWith all the new condos being Source: TREBservices.built, one often wonders where theThese sites are believed to bereliable but their accuracy cannotpeople are going to come from to live in these units. The report says exactly how fast the transition be guaranteed.We know that first-time buyers and investors are from single-family homes to condos occurs will dependresponsible for buying many of the condos, and foreign on how long the baby boomers want to stay in theirMortgagesbuyers are also making their mark. But you may be current homes. Savvy builders and condo boards willsurprised to learn that the latest statistics show that 57 ensure their buildings have amenities that cater to these2011 RatesMortgage rates areper cent of condo owners were over the age of 50 and 17 older buyers. REU negotiable with individ-ual lenders. Check to besure that you are gettingtodays best possible rate. At October 5, 2011Mortgage Rates6-month . . . . . . . .4.45%1-year . . . . . . . . .3.09%2-year . . . . . . . . .3.25%3-year . . . . . . . . . 3.29%4-year . . . . . . . . .3.49%5-year . . . . . . . . .3.64%Prime rate . . . . . . .3.00% 4. Ice dammingGTA 11 totalsBe damned Sales activityof single-familyA s winter approaches, the temperature starts topotential indicators of ice damming. drop. And to the delight of skiers everywhere, Keep the house warm and the attic cool homes snow will soon be accumulating. Snow on yourMost recent month, How can you prevent this from happening year after year?year to datedriveway is seldom more than a pain in the back; however, The obvious solution to ice damming is to keep the roofActive listingssnow on your roof can lead to leakage, even if your roof is cold enough to prevent the snow from melting.September ..........18,808new. The culprit is ice damming, the insidious snow- Insulation: In a house with little insulation, heat loss willYTD ..........................N/Amelting phenomenon that is all too familiar to many of us. cause snow to melt. Luckily, upgrading insulation in atticsNew listingsWhat causes ice damming? and roof spaces is often easily done. Attic doors also needSeptember ..........14,727Heat loss from inside the house causes accumulated snow to be insulated and weather-stripped. Foam board and YTD....................120,465on the roof to melt in spots. Then the water runs down the foam weather-stripping work well.roof until it encounters an unheated area at the edge of theSalesroof. The snow there stops the water and it re-freezes.Heat registers: Ductwork that travels through an attic September ............7,658 must not melt snow on the roof. Attic ductwork should be YTD......................70,588After a while, a dam of ice forms on the roof above exteriorwalls. The dam causes water to form a small pool that canair-sealed and insulated. For air vents in ceilings, the joint Average priceback up under the edges of the shingles. Once under thebetween the ducting and the ceiling should be caulked. September.......$465,369shingles, the water can leak into the ceiling and walls,YTD ..................$464,024 Ceiling fixtures: Ceiling mounted electrical devices likecausing damage to structure and interior finishes. lights and bathroom fans should be sealed at their boxes.Median price Inspectors,appraisers, andotherbuilding Be careful with this. Some electrical devices, like pot lights,September.......$395,000professionals can often get clues from the house about its generate lots of heat and you dont want to cause a fire.YTD ..................$390,000ice dam history. Efflorescence on brickwork below theThis one is a job for a specialist.Average dayseaves, water stains on ceilings or around windows in The cost of taking these preventative measures eitheron marketrooms below valleys or other vulnerable areas, and yourself or hiring a professional is relatively small in September ................27condensation stains or mould in the attic are allcomparison to the potential water damage YTD............................25Relationshipsrepair costs, especially if the problem recurs Average percentageWhen you refer your friends and family, I understand or results in a decrease in property value due of list pricethat you are placing your relationships in my care.to obvious water damage. September ................99These relationships are important to me and I look forward Once the warm air is kept inside the rooms YTD............................99 to meeting the people youSource: TREB where it belongs, the existing level of atticJOHN HELFRICHsend my way. ventilation will often be sufficient to keep theBroker I will always provide Housing market attic and roof spaces cold enough to prevent the same kind of reliability, indicators friendly service andice dams. Single-family dwellings professionalism to themNewSource: TREB SalesListings as I give to you. The above article is reprinted with the permission of Carson, Dunlop & AssociatesSept 10 6,13812,899 Your referrals are most Ltd., Consulting Engineers Expert Home Sept 11 7,65814,727 Direct: welcome, and I thank youInspections. % Change 25% 14%416-464-8920 for them.The intent of this newsletter is to inform you regarding real estate. Your personal details such as name and address are never shared without your consent. In accordance with the new PrivacyAct, your consent must be given (either explicitly or implicitly) to receive the newsletter. If you do not wish to receive this newsletter, please notify me. This publication is not intended tosolicit buyers or sellers currently under contract with a brokerage. The information and opinions contained in this newsletter are obtained from various sourcesbelieved to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors or omissions or for damages resulting from using the publishedinformation and opinions. This newsletter is provided with the understanding that it does not render legal, accounting or other professional advice. Whole or partial reproduction isforbidden without written permission from the publisher. Clear Communications 416-422-5754.