Virtually Toronto Real Estate: News and Information for June 2002

TODAY'S TOPICS
-Toronto Real Estate Board 'MarketWatch' June 2002
-TIPS FOR SHOWING YOUR HOME IN THE SUMMER-
-NEW OR OLD? THE DEBATE CONTINUES-

-MARKET WATCH- June 2002-
A Record May as Sales Break 8,000 for Second Straight Month

With 8,042 sales recorded last month, the Toronto Real Estate Board had its best May ever (up 7% from May 2001), and breached the 8,000 sales level for only the second time in its 82 year history, TREB President David Pearce announced today.

The President also noted that prices climbed in May to $278,323, a marginal increase over last Month's $277,664, and a 9% increase over the $255,460 recorded in May 2001. "The first five months of 2002 have been outstanding," the President said, "On a year-over-year basis, our total sales figure of 35,560 is up 28% from the same time in 2001, which was our best year ever for sales."

Breaking down the total, 3,082 sales were reported in TREB's 28 West districts and averaged $254,530; 1,254 sales were reported in the 14 Central districts and averaged $389,231; 1,686 sales were reported in the 23 North districts and averaged $299,595; and 2,020 sales were reported in TREB's 21 East districts and averaged $228,021.
TREB Market Watch (June 2002)

-TIPS FOR SHOWING YOUR HOME IN THE SUMMER-
As we enter the sweltering days of late spring and early summer, homebuyers' thoughts will naturally turn to patios, decks, landscaping, air conditioning, and in some cases, pools. So if your home is on the market, you'll want to make sure your house is in top order and summer-friendly.

As you set out to put your home on the market and add your home sale to this summer's statistics, keep the following summer tips in mind:

Curb appeal. This is arguably more important in the spring and summer than any other time of year. With sunny days, everything will be on display. Your shrubs and perennials will be in full bloom. Your deciduous trees will be fully leaved. Be sure your lawn is mowed and is lush and green. Plant a few annuals to provide an instant burst of color. Make sure your door area is clear from bicycles and toys.

Air conditioning. First, be sure it's in proper working order. Try to have your system inspected before you put your house on the market and make sure it's working properly. Second, be sure you turn it on during those days that you're away at work and potential buyers will be looking at your house. Nothing will turn buyers off more than entering a stuffy, hot house on a 90-degree day.

Back yard. Buyers will be paying extra attention to the back yard while house hunting during the summer months. They'll be envisioning an area for barbecues and space for children to play. If you're selling your house in a neighbourhood with a lot of young children, set up a swing set or place a sandbox in back. Make the back yard look as child-friendly as possible so potential buyers can envision what the space will look like for their own children.

Patio. Likewise, make sure your patio area is inviting and attractive. Clean your patio furniture and arrange it keeping the views from indoors in mind. Spruce up the area with a few container plantings.

Back yard landscaping. If you have lawn area in your back yard, make sure it is mowed and healthy. Keep shrubs and plants pruned and tidy. Lay some fresh ground cover and plant a few colorful annuals.

Windows. Make sure your windows are sparkling clean, especially if you live in a sunny region that doesn't get much summer rain.

Walls. If you're thinking about touching up the paint on your walls before you put your home on the market, keep the colors neutral and light. A light yellow or beige will make the room feel cooler than a brick red or dark taupe.

Let the light in. Open blinds and curtains so plenty of light illuminates the home's interior.

Pool. If you have a pool or spa, make sure they are clean. If you have a fence, make sure locks and latches are working properly.

And, just like any other time of year, get rid of the clutter throughout your house. And get rid of any offensive odors that may come from cigarette smoke or pets.

-NEW OR OLD? THE DEBATE CONTINUES-
As you embark on your venture to buy a home, one of the first decisions to make is whether to buy new or purchase an existing home. Each choice has its advantages, and there is no single answer which works for everyone.

You may be drawn to the shiny new, energy-efficient appliances, the beautiful master suite offered in a new home. But you may also like the charm, the canopy of trees that drape over the sleepy neighbourhood streets, and the increasing value of an existing home you've been eying.

Here are some things you'll want to ponder as you decide which route to take.

Existing Homes

Existing homes offer many considerations for potential homebuyers, including:

The neighbourhood. Many people are drawn to developed neighbourhoods for the sense of community that has been established. The mature landscaping and developed trees are often a considering factor.

Maintenance and repair. If you're considering an existing home, be sure you have a good handle on the working status of all major systems. Hire a professional home inspector to check out the house. As appliances and systems age they naturally require repair and replacement, something which may be reflected in a purchase price.

Home improvement. If you enjoy small repairs and home improvement projects around the house, then an existing home would be your cup of tea.

Existing features. When you buy an existing home, you typically don't have to worry about buying the extras, such as blinds for the window, a security system, or a landscaped back yard.

Land. In most metro centers, new homes may have less land than newer properties. Why? Because of changes in land-use patterns.

Location. Existing homes are often found in older, more convenient metro core areas rather than outlying suburbs.

The opportunity to remodel. In some cases buyers may prefer an older home in a particular location which can be modernized or expanded. In effect, use the existing home as a base to build a unique property.

Track record. When you purchase an existing home, you know how much the property has appreciated over the years -- in effect, you have an index of sorts which measures the community's marketplace appeal. At the same time, like stocks and bonds, you know that past results do not guarantee future marketplace performance.

Traditional layout. If you like the formal living and dining rooms, an existing home will likely satisfy you.

New Homes

On the other hand, new home considerations include:

Modern architecture and layout. If you prefer a family room, bigger closets, more bathrooms, and media niches over formal dining and living rooms, a new home is likely to better accommodate you.

Options. When you buy a new home, you get to decide the particulars of what you want. You can also select any of the upgrade features the builder may offer, choose the right paint for each room, select the cabinets you want, and do much to customize the property.

New homes are likely to need fewer repairs or replacements because everything is, well, new, warranties are in place, and normal wear and tear has yet to begin.

Safety features. Most new homes now have hard-wired smoke detectors on every floor. They are usually interconnected so that if one goes off, they all go off.

Energy efficiency. Over time homes have become better insulated and energy costs for given purposes have been reduced. Better windows, more efficient heating and cooling equipment, better control of air infiltration, and greater use of insulation, new homes usually consume less energy.

Less maintenance. New homes are often made with materials that require less maintenance, such as aluminum siding, vinyl windows and trim that never need painting, and wood decks made with pressure-treated wood that resists rot and insects.

The Real Answer

So which is the better choice -- new or existing?

There's no single, objective answer that's right for everyone. We each have different preferences, and the values that best suit Jones may be all wrong for Smith.

Moreover, terms such as "new" and "existing" are among the many factors to consider when looking for a home. All homes are unique -- they each offer a combination of factors which no other home quite duplicates. There are trade-offs with every property.

The real question is not which is "better" -- new or existing -- but rather which specific property best meets your needs. The only "correct" answer is unique to you: It's whatever you prefer.
(realty times)