Virtually Toronto Real Estate: News and Information
for January 2002
TODAY'S TOPICS
-Toronto Real Estate Board 'MarketWatch'
January 2002
-Canadian Real Estate Continues Record-Setting
Pace
-How To Deal With Canada's Winter
Weather
-So You Want To Immigrate To Canada
But Aren't Sure How?
-MARKET WATCH-JANUARY 2002-
Real Estate Sales Bring Toronto a Happy Holiday
In December, the Toronto resale market topped off a record
breaking year with a record breaking performance as 4,762 homes
were traded through TREB's MLS system, more than ever before
seen during the usually slow holiday season.
"That's up 57% from last December's 3,026 sales, and up
15% from
the 4,127 transactions recorded in December of 1996, which was
the previous record,"TREB President David Pearce announced
today. "Looking at 2001 as a whole, the good news just keeps
coming," Mr Pearce continued. "Total sales reached 67,612,
the
best yearly result ever, and Toronto-wide average prices broke
$250,000 for the first time in over ten years. We fully expect
the
momentum to spill over into the new year."
Breaking down the total, 1,806 sales were reported in TREB's
28
West districts and averaged $232,845; 791 sales were reported
in
the 14 Central districts and averaged $345,681; 967 sales were
reported in the 23 North districts and averaged $280,796; and
1,198
sales were reported in TREB's 21 East districts and averaged
$210,026.
TREB Market Watch (January 2002)
-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 at about 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)
-HOW TO DEAL WITH CANADA'S WINTER WEATHER-
Many of us who live in urban centres don't worry too much about
power failures and big winter storms. We feel smug that, whatever
Mother Nature throws at us, we can handle it. But then something
comes along to remind us that maybe Mother Nature holds the upper
hand after all. Ask the residents of Buffalo, New York, who are
digging out after a six-foot -- yes, that's foot -- snowfall.
Or ask those who live in cities such as Montreal and Kingston,
Ontario, who went without power for days after an ice storm in
1998.
Even during a normal Canadian winter, people die or are injured
because they didn't take the simplest safety precautions. Here's
a quick refresher course of what to do when the snow flies.
Snow Shovelling
If you're not used to physical activity, or if you have a history
of heart attacks or back trouble, hire somebody else to shovel
your snow. If you are shovelling your own snow, treat it as you
would any other exercise by warming up your muscles before digging
in. Take it slow and if it hurts, stop!
If you have a snow thrower, you'll be the most popular person
on the street. Often when a snow thrower is being used, especially
if the snow is wet, the chute gets clogged. If this happens, turn
off the machine, wait for all the moving parts to stop, and then
use a stick to clear the chute. Never put your hands inside the
chute for any reason. Most snow throwers also have a control that
makes it stop within five seconds after the operator lets go of
the controls. Never disable this feature.
If you have gas heating, don't use a plow or use a snow thrower
near the gas meter or piping, or shovel snow so that it covers
the equipment. Use a broom to gently clear snow off the equipment.
Sometimes melting snow from a roof or eaves, or drifting snow
can cause an icy build-up on the equipment, which could interrupt
the gas flow or cause gas appliances to malfunction. Don't kick
or hit the meter or piping to knock off ice or snow. If you have
a problem or see ice build-up, call your gas company.
Indoor Preparations
Hopefully you remembered to have your furnace cleaned and serviced
during the summer months. If not, get it checked as soon as possible.
The same holds true for the chimney if you plan to use a fireplace.
If you burn wood indoors, store it outside under a cover to protect
it from rain and snow. Wood that is stored inside will dry out
and burn too quickly. It also brings added moisture into the home,
and can also provide a winter home for insects.
The Y2K threat prompted many people to have survival equipment
in their homes, but now that the hype has died down, much of that
gear may have been used for a camping trip or last summer's vacation.
Here's what every home should have readily available in case of
a winter emergency:
First aid supplies; prescription medication for family members
who need it.
Candles, matches.
A flashlight, batteries and a battery-powered radio.
Cash.
Non-perishable, nutritious, ready-to-eat food that you and your
kids don't mind eating.
Drinking water -- at least one litre per person, per day.
Manual can and bottle openers.
Cutlery, disposable dishes and plates, a knife, garbage bags.
Toilet paper and other personal supplies.
Blankets or sleeping bags.
A change of clothing and winter footware.
Pet supplies if needed.
Copies of important papers and emergency phone numbers of friends
and family.
Playing cards and small games.
If You Have A Power Failure
Don't over-react. Unplug sensitive electronic equipment and computers
so there won't be a surge when the power comes back on. Don't
open your freezer a full freezer will keep the food frozen for
24 to 36 hours if you keep the door shut. Don't try using a charcoal
or gas barbecue, or home generating equipment, indoors. Don't
leave burning candles unattended.
For more information about dealing with a winter emergency, visit
the Saint John Ambulance Canada or Emergency Preparedness Canada
websites.
(realty times)
-SO YOU WANT TO IMMIGRATE TO CANADA BUT AREN'T
SURE HOW ?-
This is a great place to start because deciding which category
to apply under is something we can help you with. You will be
pleased to know that Canada's immigration policy is very proactive.
Every year the Minister of Citizenship and Immigration announces
its targets for immigrants to Canada. Although the target is annually
between 200,000 and 225,000 persons, it is often
the case that less than 200,000 people arrive. Although the
proposed criteria (effective June 28, 2002) in the new regulations
for economic migrants will be tougher in the future, the numbers
of applicants is expected to remain strong.
Canada is a large and prosperous nation and needs people so
that its economy can continue to grow. That's why you should
consider applying if you're young, have a strong educational
background, several years of work experience and a positive
attitude!
http://www.migrationtocanada.com
Mr. Eric Katz 416-977-0919
