Roger Townsend - Blog

Toronto real estate: Condo rents hit record high as would-be homebuyers stay on sidelines

roger.townsend@century21.ca — Tue, 14 May 2013 00:00:00 GMT

Condo leasing up 31 per cent in wake of tighter mortgage lending rules, new study finds.

By: Susan Pigg Business Reporter

Would-be first-time homebuyers are fuelling such unprecedented demand for rental condos across the GTA that demand far outstrips supply, with average rents surging to a record $1,856 per month, says a new report by condo research firm Urbanation.

Since mortgage lending rules were tightened last July, pushing many first-time buyers to the sidelines, demand for rental condos has skyrocketed, says the report released Tuesday. The number of condos leased via the MLS jumped 31 per cent in the first quarter of 2013 over the same period a year earlier.

Rents have climbed 10 per cent just in the last two years, the report notes, after a decade of largely flat or minimal increases.

“For the first time, we’re seeing rent levels grow stronger than resale and new condo prices,” says Shaun Hildebrand, senior vice president of Urbanation and a former market analyst with the Canada Mortgage and Housing Corporation, who has watched the rental market closely for years.

“What we’re seeing is investors who are recognizing that the real strength in the market is on the rental side right now, not the resale side,” says Hildebrand.

Units listed for rent on the MLS grew 19 per cent in the first quarter, year over year, as investors opted to rent rather than sell units into a market where sales have seen double-digit declines and prices have flattened since last summer.

That high rental demand has had the unintended effect of stabilizing a condo market that many housing watchers, including Finance Minister Jim Flaherty, had feared it was a bubble just waiting to burst.

In fact, strong demand for rental condos has contributed to bidding wars for units, especially in the downtown core, although competition is expected to ease — and rent increases are expected to stabilize, though not likely fall — as tens of thousands of new condo units come on stream over the next three years, says Hildebrand.

The fact that rents have now reached record levels — with the average index rent now about $2.33 per square foot — means more would-be buyers are also likely to start scouring the resale market again, realizing that their rents will cover the better part of mortgage payments and maintenance fees, noted Hildebrand.

Just Listed

roger.townsend@century21.ca — Fri, 26 Apr 2013 00:00:00 GMT

I don't know what happened, but the market just exploded the last 2 weeks. The last 3 homes I listed all sold with in days. Take a look at my newest listings. 17 Carisbrooke Crt & 2315 Bromsgrove.

Why didn't my house sell?

roger.townsend@century21.ca — Wed, 27 Mar 2013 00:00:00 GMT

Reasons why your home won’t sell

If you have had your home on the market for several months and haven’t seen much activity or any offers, chances are that one or more of the reasons below are to blame.

Your price is too high

No doubt about it, the most common reason for a home not selling is that the asking price has been set too high. The reasons for setting your price too high to begin with are many. Ranging from over enthusiastic listing agents to unrealistic seller expectations. Regardless of the reason though, if you’ve priced your home too high, you’ve set yourself up for a number of obstacles to selling your home. Even if you do get an offer for the overly high asking price, the deal may fall apart before closing because the buyer may have problems financing at too high a price. Look at other homes for sale, ones as similar and as close to yours as possible. If they are going for less than you are asking, you may be priced too high. The fact is, your home is competing against those other homes, and what buyers are willing to pay is what will determine final sales prices.

The condition of your home

There is a lot of competition out there to sell homes. Your home has to compete against other similar homes for sale, as well as competing against shiny brand new homes. The more you can do to make your home look appealing to a buyer, the better your chances for a quick sale. Look at your home with a critical eye – put yourself in the buyers position. A buyer doesn’t want to have to do anything except move in. Your best “bang for the buck” in improving the condition of your home are paint and flooring. Make sure that all of the paint is in great condition, both inside and out. Repainting doesn’t cost too much, and will usually make the biggest impact on buyers. Make sure all of the flooring looks good too. You may want to consider putting in new carpet. Again, it’s not that expensive but it sure does make an impact on buyers coming to look at your home.

Location, location, location

It’s the oldest cliché in the world, but it’s true. When it comes to real estate, it’s all about location! When it comes to homes, things like how good the schools are, crime rates, visual appeal of the neighborhood and noise or the smell of pollution can all effect how desirable the location is. If you’re in a bad location, a good real estate agent may help to minimize some of the impact by suggesting improvements to the house. But the only really reliable way to overcome a bad location is with a lower price. Simply put, an identical home in a bad location won’t sell for as much as the same home in a better location.

Your marketing campaign is out of steam

The best listing agents all use an aggressive marketing plan to market their listings. If your listing agent isn’t making sure your home can be found easily on the internet, isn’t actively touting his or her listings to other agents in the area, isn’t running ads in the local newspapers and real estate publications, then it might be time to change agents. The best agents might even run radio or television ads for their listings. If all your agent has done is put a sign in your front yard and add your home to the local MLS, then that agent isn’t coming close to doing all that can be done to effectively market your home.

The market is slow

You’ll hear it described as a slow market, or a buyers market, or maybe a cold market. But it all means the same thing. That home sales in the local area, or market, are slow. That there are too many homes for sale and not enough active buyers. There are several things you can do to combat a slow market. The most effective strategy is to sell at a lower price. Buyers are expecting to find bargains during a slow market. You can also help yourself by offering to pay some concessions to help a buyer that might not have a lot of cash. The ultimate way to beat a slow market is to simply wait it out. But that’s not always an option for many sellers.

Your home isn’t easily accessible

To get your home sold quickly, it’s important that other agents in the area show it to as many potential buyers as possible. When a busy agent is compiling a list of homes to show a buyer, the agent will naturally tend to show those houses that are easiest to gain access to first. Many homes on the market have “lock boxes” on them. The lock box is a device which holds a key to the home, that only qualified local agents can access. Homes that are listed as being “lock box, no appointment needed” will get shown more often than homes listed as “agent has key, call for appointment”. If at all possible, you should let your agent put a lock box on your home for easier showing. If not, you should do anything else you can to make it as convenient as possible for agents to show your home.

You have an agent nobody likes

Sounds almost silly, but it’s very true. If your listing agent isn’t liked or respected by other agents in your area, it could slow down the sale of your home. When an agent prepares to show properties to prospective buyers, the agent begins by talking to the buyer to find out what kind of home they are looking for. Then the agent searches the local MLS and other sources for homes that fit the buyer. If there are a number of good matches to choose from, and one of them has been listed by an agent that is hard to get along with, or arrogant, or has otherwise made himself unpopular, well… It’s just human nature to tend to skip over someone you don’t like.

Top 15 home staging tips

roger.townsend@century21.ca — Thu, 14 Feb 2013 00:00:00 GMT

Preparing to sell your home? These home staging tips will help your house look appealing and welcoming to potential homebuyers.

By Martha Uniacke Breen

In many city centres across Canada, housing prices are at an all-time high and still climbing. According to home staging expert Alyssa Tavazoie of Alyssa Interiors in Toronto, if you want your house to look like it's worth every penny of the (substantial) sum you're asking, putting your home's best foot forward -- and then some -- is a must. Here are some of Tavazoie's tried-and-true home staging tips:

1. Depersonalize. A potential homebuyer needs to picture herself in your rooms, and quirky decorating or pictures of the kids hurts the illusion. Remove all family photos and, if necessary, paint brightly coloured walls a more neutral shade. 

2. Make sure everything in the house is in top condition. No torn screens, cracked plaster or burnt out pot lights. You may have gotten used to seeing them, so tour your house with a critical eye (or ask someone else to), and repair anything that needs it. 

3. Chandeliers. One of Tavazoie's favourite low-cost, high-return investments is chandeliers. "People think you have to spend a fortune on lighting, but you can go to any big box store and get beautiful ones for, at most, a few hundred dollars," she says. "Many houses don't have enough lighting to begin with, so if you're having the electrician in anyway, have more overhead fixtures installed -- or at least buy some great lamps."

4. Be aware of scale in the house when it comes to furnishings. You might have a giant sofa that you love, but if it makes the room look small, it has to go. Aim for small groupings of furniture (ideally more than one in a room, especially a large one), with plenty of space around them.

5. A clean kitchen. Kitchen counters should be clear and clutter-free. A single bowl or vase holding cooking utensils is okay, but that's about it. Store small appliances in cupboards if you must.

6. Kitchen decor. If your kitchen doesn't have a backsplash, this is a weekend job that a reasonably handy person can tackle for little money. Invest in some gorgeous tiles (since you're doing such a small area, it shouldn't cost too much) or consider glass mosaics, mirror tile, or plain tile interspersed with a few fancy ones.

7. Replace boring or worn cabinet pulls with high-design new ones. Consider brushed steel, which look great with stainless steel appliances, or decorative ceramic. 

8. Fresh linens. Make sure any visible linens (tea towels,chair cushions, oven mitts, etc.) are brand new or at least look brand new. 

9. Spotless kitchen. Hire a professional cleaning company to get at all the little nooks and crannies, down to the last detail. This rule, incidentally, should apply to the whole house. 

10. Fix up the bathroom. In the bathroom, an ugly builder's mirror can be replaced with a pretty framed mirror for under $100. For a little more, you can buy an antique or higher-end model from a housewares boutique. Switch out the lighting for a nice chandelier or some attractive new sconces and the bathroom will look as if it's been renovated. 

11. Get a hotel-chic look. Replace bathroom towel bars with well-designed ones from a designer bath boutique. You can get matched ensembles that include toilet tissue holder, wastebasket, trays, etc. Aim for the hotel chic look: Crisp white towels neatly stacked in a towel holder, small trays on the vanity holding attractive toiletries or soaps (wrapped or unused) and scented candles.

12. Keep clutter to a minimum.

13. Fix up the masterbedroom. Continue the luxury hotel look in the master bedroom: Multiple new pillows with shams or toss pillows in front, crisp white linens and a throw at the end of the bed. Keep end tables uncluttered, with matching lamps and nothing else except, perhaps, a tiny vase of flowers.

14. The exterior of your home should look as polished as the interior. This means neatly trimmed bushes, mulched flowerbeds and fresh seasonal arrangements in urns by the front door.

15. A great smell makes a house memorable. Baking cookies has become a cliche, but buy a room spray with a fragrance you love and spray the house sparingly before each showing.  Home staging can be easy and inexpensive, especially if you focus on the small details. Then, just stand back and let your house shine and it is sure to impress potential homebuyers.