The Toronto Real Estate Board announced at this time of writing the average selling price for a home sold in 2102 was up by almost 7% from 2011. Price growth was the highest for singles, semis and townhomes despite a dip in sales during the second half of 2012. Market conditions remain tight for these types of homes with substantial competition between buyers. I will expect similiar strong demand in 2013 for these types of homes.
Wednesday, January 9, 2013
Tuesday, January 8, 2013
The Tax Free Savings Account
Saving for a new home just got $500 easier. On Jan. 1, 2013, the contribution limit for Tax Free Savings Accounts (TFSA) rose to $5,500 annually. The maximum that you can currently contribute is now $25,500.00. The interest earned is in addition to.
TFSAs are a great way to save. Until 2009, when TFSAs were introduced, many people put together the down payment for their first home by withdrawing money from their RRSPs under the Home Buyers Plan (HBP.)
The HBP is a huge drag on retirement savings. Today, you can withdraw up to $25,000 from your RRSP to buy a first home, and then return it to your account over 15 years. The problem lies with the payback.
The $500 contribution increase to TFSAs starting in 2013 isn’t a huge amount in the scheme of things. However, the announcement serves to highlight the utility of TFSAs as a superior down payment savings tool.
Navigating The Winter Sky!
Winter evenings does show of the most brilliant stars that the skies have to offer. Six stars from different constellations form a spectacular grouping called the "Winter Hexagon" which dominates the southern section of the sky. A great starting point to begin learning from. Keep in mind from night to night the sky shifts slightly west at the same time each evening.
Sirius, the brightest of all stars visible from Earth. It marks the constellation Canis Major, the Great Dog. You can easily find this white coloured star by following the line of 3 stars that form Orion the Hunter\'s belt eastward (left). The second point in the Hexagon is the white star Procyon which marks the constellation Canis Minor. Next are two dominating stars of equal brightness, Castor and Pollux side-by-side, representing the heads of the Gemini Twins.
The fifth point is Capella, shining with a hint of golden-yellow in the constellation of Auriga, the Charioteer. Following Orion's belt up and westward (right), leads us to the next star of Hexagon. Aldeberan, glittering orange-yellow which marks the eye of Taurus, the Bull. The brightest object near Aldeberan is Jupiter, a great place to begin finding your night sky bearings.
Finally completing the tour is the brilliant blue-white star Rigel of Orion. In my opinion on average, the evening winter skies are the most brilliant and clear.
Click this link for a sketch.
http://www.facebook.com/photo.php?fbid=10151328778871056&set=a.10150986270971056.389413.554341055&type=1&relevant_count=1&ref=nf
Monday, December 17, 2012
December's Night Sky News
Jupiter Brightens
The planet lies in Taurus the Bull, and is about 30 times more brilliant than the brightest star in that constellation, Aldebaran the Bull’s eye. Look for Jupiter in the east at sunset, you cannot miss it. Jupiter is a great target for beginners. You’ll be able to spot its dark equatorial cloud belts and lighter zones with a small telescope and even be able to see its four major moons with binoculars if you steady them. I remember like it was yesterday, almost 15 years ago. Jupiter was in the same location in the sky with Saturn closeby and the Northern Lights dancing around the pair. What a beautiful sight!
Comet ISON
If we are lucky in the fall of 2013 we may see this comet become bright enough to be seen in daylight. Discovered on September 21, 2012, comet ISON has an orbit similiar to the Great Comet of 1680 which could be seen in daylight. It might burst into brilliance as it rounds our Sun, or become a dud. I love comets, so let us wait and see.
www.jeffreyboylin.com
www.jeffreyboylin.com
Friday, December 14, 2012
Good News For Home Owners and Buyers!
Sales Dip in November while Selling Prices Increase
Greater Toronto Area REALTORS® reported 5,793 sales in November 2012 – down by 16 per cent compared to November 2011.
Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012.
I've heard buyers say they will wait for property prices to fall. Mistake! You can see from this report that although the average price only rose by 1.6% anually, in fact property values for what the average buyer seeked this year, rose on average by 6%. I don't see this trend stopping. I believe in the Town of Georgina we can expect the average increase in house prices in 2013 to out pace the average increase of the Toronto Real Estate Boards benchmark price index. The reason is affordable average sale prices to begin with and a safe quick commute to the work place. There has never been a better time to buy a home. Speak to a Realtor who can actually interpret the statistics.
Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages, have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront Land Transfer Tax takes money away from buyers that otherwise could be used for a larger down payment.
The average selling price was up by 1.6 per cent annually to $485,328.
The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over one-million dollars was down substantially, which influenced the overall average price.
The MLS detached benchmark price, which tracks the price for a home with the same attributes over time, was up by almost six per cent in Toronto, suggesting that market conditions for low-rise homes remain quite tight despite a changing mix of sales.
Seasons Greeting!
Jeff
Greater Toronto Area REALTORS® reported 5,793 sales in November 2012 – down by 16 per cent compared to November 2011.
Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012.
I've heard buyers say they will wait for property prices to fall. Mistake! You can see from this report that although the average price only rose by 1.6% anually, in fact property values for what the average buyer seeked this year, rose on average by 6%. I don't see this trend stopping. I believe in the Town of Georgina we can expect the average increase in house prices in 2013 to out pace the average increase of the Toronto Real Estate Boards benchmark price index. The reason is affordable average sale prices to begin with and a safe quick commute to the work place. There has never been a better time to buy a home. Speak to a Realtor who can actually interpret the statistics.
Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages, have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront Land Transfer Tax takes money away from buyers that otherwise could be used for a larger down payment.
The average selling price was up by 1.6 per cent annually to $485,328.
The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over one-million dollars was down substantially, which influenced the overall average price.
The MLS detached benchmark price, which tracks the price for a home with the same attributes over time, was up by almost six per cent in Toronto, suggesting that market conditions for low-rise homes remain quite tight despite a changing mix of sales.
Seasons Greeting!
Jeff
Thursday, December 13, 2012
Tonight through Dec 17! The Geminid meteor shower peaks the night of December 13/14, when you could see up to 120 meteors per hour.
The Geminids are so named because of the general direction where the meteors appear to radiant from. That is, the boundary of the Constellation Gemini the Twins. Look east well above the horizon and look for the brightest object you can see. That bright orb will be Jupiter. Gemini is the constellation just to the left and below. After midnight, look generally straight overhead and high in the western sky. This is when you will be most likely to see the most meteors.
Geminid meteors are relatively slow moving, and many leave smoke trails that can last a number of seconds. In 2012, the shower will be active from about December 4 to 17, but the peak (the best time to see them) occurs the night of December 13 and the morning of December 14. The Geminid meteor shower has a long duration so observers should see an excellent show all night. You will need a darker site to observe from.
The Geminid shower is one of the most active of any year and usually produces a good percentage of bright meteors, so it's worth watching. This year, however, conditions are excellent.
“You don't need optical aid to observe this Shooting Star Event. Your eyes alone work best for meteor showers because they don't restrict your field of view, although binoculars will help you follow any long-lived smoke trails.
Give your eyes time to adjust for the night sky and stay warm.
Friday, February 4, 2011
Housing prices to drop 25%, forecaster predicts
Information taken from an article by Tony Wong...Moneyville
House prices in Canada will fall over the next several years by as much as 25 per cent, creating a massive impact on the economy and possibly pushing the country into recession, says a forecast.
The recent housing boom has resulted in the largest rises in house prices ever seen in Canada, which have been similar in magnitude to those during the recent boom in the U.S., said Capital Economics analyst David Madani in a report released Thursday. “Unfortunately, the subsequent falls in prices could also be just as severe as those elsewhere.”
Madani is predicting house prices will fall by a cumulative 25 per cent over the next several years, or “in the same ballpark as the recorded declines in the U.S. and other countries.”
The effects on consumer spending and housing investment could be significant and perhaps strong enough to “push the economy into another recession,” says Madani.
Financial agencies such as the Canadian Mortgage Housing Corporation, which provides mortgage loan insurance, could also be exposed to significant losses, he argues. “We conclude that housing prices have formed a bubble and are at risk of falling substantially over the next few years.”
The market has been particularly devilish to forecast for economists because of the continuing global financial uncertainty.
Last year, the Canadian Real Estate Association modified its forecasts at least four times. After initially predicting housing prices would increase in 2011, it now says prices will fall by 1.3 per cent — far below the eye-catching 25 per cent forecast by Capital Economics. Some economists do not see a parallel between the U.S. market and Canada. “The price run-up in Canada has been based on strong economic fundamentals and demand from owner-occupants, whereas in the U.S., housing production was in excess of the demand that was justified by economic conditions,” said Toronto housing economist Will Dunning. “There was a large element of speculation in the U.S. that has not been present in Canada. “If house prices are to fall, there needs to be a mechanism — an excess of supply relative to demand,” he said. “At this point, there is not an excess supply (in Canada) and it is difficult to see one materializing.”
One reason is that growth in future disposable income per worker won't close the gap between house prices and income, he says.
“Prices have risen substantially relative to income and we don't think that's sustainable,” said Madani.
The historical home price-to-income ratio is 3.5, but now it's hovering around the 5.5 mark, meaning average house prices are more than five times the income of workers, he said.
And while strong net immigration and demand from baby boomers are expected to fill some of the demand for housing, we are simply building too many homes, says Madani.
Madani is predicting house prices will fall by a cumulative 25 per cent over the next several years, or “in the same ballpark as the recorded declines in the U.S. and other countries.”
The effects on consumer spending and housing investment could be significant and perhaps strong enough to “push the economy into another recession,” says Madani.
Financial agencies such as the Canadian Mortgage Housing Corporation, which provides mortgage loan insurance, could also be exposed to significant losses, he argues. “We conclude that housing prices have formed a bubble and are at risk of falling substantially over the next few years.”
The market has been particularly devilish to forecast for economists because of the continuing global financial uncertainty.
Last year, the Canadian Real Estate Association modified its forecasts at least four times. After initially predicting housing prices would increase in 2011, it now says prices will fall by 1.3 per cent — far below the eye-catching 25 per cent forecast by Capital Economics. Some economists do not see a parallel between the U.S. market and Canada. “The price run-up in Canada has been based on strong economic fundamentals and demand from owner-occupants, whereas in the U.S., housing production was in excess of the demand that was justified by economic conditions,” said Toronto housing economist Will Dunning. “There was a large element of speculation in the U.S. that has not been present in Canada. “If house prices are to fall, there needs to be a mechanism — an excess of supply relative to demand,” he said. “At this point, there is not an excess supply (in Canada) and it is difficult to see one materializing.”
One reason is that growth in future disposable income per worker won't close the gap between house prices and income, he says.
“Prices have risen substantially relative to income and we don't think that's sustainable,” said Madani.
The historical home price-to-income ratio is 3.5, but now it's hovering around the 5.5 mark, meaning average house prices are more than five times the income of workers, he said.
And while strong net immigration and demand from baby boomers are expected to fill some of the demand for housing, we are simply building too many homes, says Madani.
Subscribe to:
Posts (Atom)