Virtually Toronto Real Estate: News and Information
for December 2001
TODAY'S TOPICS
-Toronto Real Estate Board 'MarketWatch'
December 2001
-Canadian Real Estate Continues Record-Setting
Pace
-Easy Steps Make Homes Safer
-Toronto Public Library-Online
-CN Tower
-MARKET WATCH-DECEMBER 2001-
It's Already a Record
With a month left on the calender, the Toronto real estate market
has already broken previous existing sales records, TREB President
David Pearce announced today.
"With 5,759 sales in November, the year-to-date sales total
for 2001 comes to 62,850 single-family dwellings, already well
ahead of the 58,957 sales recorded in 1999, our previous best
year."
The President also noted good news on the pricing front. "The
year-to-date average price in Toronto is $251,199. This is up
3% from the $243,255 recorded in 2000 and the first time in over
ten years that the price has reached above $250,000."
Breaking down the total, 2,119 sales were reported in TREB's
28 West districts and averaged $234,004; 911 sales were reported
in the 14 Central districts and averaged $354,355; 1,185 sales
were reported in the 23 North districts and averaged $284,107;
and 1,544 sales were reported in TREB's 21 East districts and
averaged $213,850.
Neighbourhood Corner
Deer Park
So far this year there have been 35 sales of detached homes in
the Deer Park area (between Yonge St. and Oriole Parkway, St.
Clair Ave. and Chaplin Court) for an average of $694,778. This
is up 8% from the $641,610 recorded during the same time last
year. Average days on market was 32, and the most expensive property
sold in the area this year was $1.4 million.
TREB Market Watch (December 2001)
-CANADIAN REAL ESTATE CONTINUES RECORD-SETTING
PACE-
Given recent world events and all the talk about the recession,
job losses and other economic doom and gloom, it would be understandable
if Canadian real estate agents feel a little down as they head
into the holiday season. But the chief economist for the country's
federal housing agency says there's no reason for long faces in
the residential real estate industry.
More existing homes were sold in Canada in 2001 than ever before,
and although the forecast for 2002 isn't quite as rosy, it will
still be the second-best year ever, says Michel Laurence, chief
economist at Canada Mortgage and Housing Corp. (CMHC). "There's
no doom and gloom in the forecast," Laurence told a sold-out
conference in Toronto recently. "The housing market is in
a positive mode, despite the rest of the economy."
Mortgage rates are considered the number one reason why the resale
market remains strong. Rates continue at the lowest level in memory,
and Laurence predicts, "Since there's no risk of inflation,
everything points to low mortgage rates remaining for the next
several months."
Although there have been job losses in central Canada, Laurence
says the market is still benefiting from several previous years
of job growth. "People take their time before jumping into
the market," he says.
Similarly, strong immigration numbers from previous years are
helping the housing market today. "It takes about 10 years
for immigrants to go from renters to buyers," Laurence says.
Immigration hit record numbers in 1992 and 1993, and was also
strong in 2001. Tighter requirements are expected to lower the
number of immigrants next year, but fewer people are also expected
to emigrate to the United States.
The percentage of sales to new listings is at an all-time high
across the country, says Laurence. It's considered a sellers'
market when that percentage rises above 40 per cent, and it's
currently atabout 65 per cent. The new home market is also at
a record low for unoccupied inventories.
Not surprisingly, rental apartment vacancy rates across the country
are near a record low.
The average MLS selling price is climbing, from $164,135 in 2000,
to a forecast of $172,500 in 2001, to $177,800 in 2002.
CMHC also sees renovation spending rising to record levels in
2002, as a result of all the recent purchases. "Even if there's
a decline in the Resale market next year, renovation spending
will increase in the next two or three years," says Laurence.
"We're also seeing anecdotal evidence that, considering the
decline in the tourism and travel industries, more people are
going to put their money into their mortgages and renovations."
Those who think the industry may be headed for a "housing
meltdown" like the market saw in 1990 and 1991 should be
reassured by several factors that are different this time around,
says Laurence. He says a lack of consumer confidence lead the
recession in 1991, prompted by massive job losses.
"Consumer confidence is much stronger now," says Laurence.
CMHC's most recent survey of consumer intentions to buy or renovate
a home was taken during the time just before and just after September
11, but the results show that the attacks did not affect consumer
intentions, he says. Consumer confidence may decline in 2002 because
of reduced job prospects, but it has a lot of resilience and is
still at a historically high level.
Some other big differences between the market now and before
the last recession:
The five-year mortgage rate was at 13.4 per cent (adjusted for
inflation) compared to 7.3 per cent now.
Job growth was lower and unemployment higher than now.
Immigration is higher now.
The sales-to-listing ratio then was 33 per cent; now it's about
65 per cent.
The rental vacancy rate then was 3.3 per cent; now it's 1.3 per
cent.
The growth in disposable income then was 0.9 per cent; now it's
2.2 per cent.
CMHC says there will be a record 364,500 MLS sales in 2001, compared
to 333,197 in 2000. The forecast for 2002 is 357,100 sales.
(realty times)
-EASY STEPS MAKE HOMES SAFER-
-Containers-
Keep potentially-dangerous substances in their original containers.
Switching over to another containers can take away the precautions
you will need to take quick action if someone gets poisoned: The
directions for treatment, where to call for help, and possibly
even more important: what not to do if someone is poisoned. Usually
such information is printed right on the container. Switch to
a handy glass bottle "because it's easier to use" and
you've just lost your first line of defense.
-Use Properly-
There's a reason harmful products have this legally mandated phrase
on them: "Use Only As Directed." Believe it or not,
there are a lot of knuckleheads out there who can invent new --
albeit disastrous -- uses for products.
Use common sense. Keep medicines in safe places. Put medicines
away during open houses. Keep medicines away from children.
-Follow Instructions-
What steps must you take to be safe? Read the instructions.
If the product says "open windows and allow for good ventilation"
it means you should open some windows and allow for good ventilation.
There is a reason for such advice, and instructions should be
carefully followed.
Store food and household chemical in separate areas. (Don't think
a small child looking at dishwasher detergent with a lemon on
the front might not think it's good to eat. Lock-up dangerous
products to prevent access to children.)
Never mix household and chemical products together. Never mix
several chemical products together.
Wear protective clothing -- long sleeve shirts, long pants, socks,
shoes, gloves and goggles -- when spraying pesticides and using
other chemicals.
Never sniff containers to discover what's inside. (A lot of people
did that in the '60s and look where it got them.)
Consider expiration dates on yard products. Carrying over from
one year to the next might not work. Discard appropriately.
First aid instructions on old product containers may be incorrect
or outdated.
If the victim has collapsed or is not breathing, call 911.
(realty times)
-TORONTO PUBLIC LIBRARY -ONLINE-
Visit The Toronto Public Library online, the largest public library
system in Canada, with 98 branches and more than 11 million items
to borrow or use in the library.
http://www.tpl.toronto.on.ca/
You can also find out about library collections, programs and
services by emailing Answerline or by calling 416-393-7131
-CN TOWER-
Canada's National Tower
Defining the Toronto skyline, the CN Tower is Canada's most recognizable
and celebrated icon. At a height of 553.33m (1,815 ft., 5 inches),
it is the World's Tallest Building and Free Standing Structure,
an important telecommunications hub, and the centre of tourism
in Toronto.
Each year, approximately 2 million people visit the CN Tower
to take in the breath-taking view and enjoy all the attractions
it has to offer. The CN Tower was built in 1976 by Canadian National
(CN) who wanted to demonstrate the strength of Canadian industry
by building a tower taller than any other in the world. On June
26, 1997, TrizecHahn Corporation, one of North America's largest
real estate companies signed a long-term operating and management
lease for the CN Tower and its adjoining base lands. Under the
management of TrizecHahn, the landmark has undergone the most
significant change in its 21-year history. A $26 million entertainment
expansion and revitalization opened its doors on June 26, 1998.
Although the CN Tower inspires a sense of pride and inspiration
for Canadians and a sense of awe for tourists, its origins are
firmly rooted in practicality. The construction boom in Toronto
in the 1960's transformed the skyline characterized by relatively
low buildings into one dotted with skyscrapers. These new buildings
caused serious communication problems. With its microwave receptors
at 338 m (1,109 ft.) and 553.33m (1,815 ft., 5 inches) antenna,
the CN Tower swiftly solved the communication problems with room
to spare. As a result people living in the Toronto area now enjoy
some of the clearest reception in North America.
The CN Tower is situated on Front Street which is located in
the Heart of the Entertainment District. The CN Tower is easily
accessible from Union Station as well as many major streets and
highways. For a broader sense of the CN Tower's location, it is
located on the north shore of Lake Ontario.
http://www.cntower.ca/
Archived Virtually Toronto Real Estate Newsletters
