MARCH 2010. Greater Toronto Realtors reported 7,291 sales through the Multiple Listing Service® (MLS®) in February, representing a 77 per cent increase over February 2009. The average price for these transactions was up 19 per cent year-over-year to $431,509. Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.

"Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise home types. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said TREB President Tom Lebour. "This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace."

New listings also increased in February, climbing 24 per cent compared to the same month last year.

"Annual growth in new listings is expected to continue. New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable singledigit rates of price growth." (Source: TREB)

Finance Minister Jim Flaherty today unveiled new mortgage standards aimed at stopping housing speculators and ensuring homebuyers can adequately juggle their debts when interest rates inevitably rise. Mr. Flaherty stressed that Canada's real estate market is healthy, and that the new rules, which take effect April 19, would stop "negative trends" from development. Ottawa moved in three areas:

New qualifying standards will mean borrowers must be able to handle a five-year, fixed-rate mortgage, even though they may opt for a shorter term and lower rate. The government said this test will help homebuyers prepare for higher rates. As it now stands at the major banks, borrowers are income-tested for a three-year fixed rate. Craig Alexander, Toronto-Dominion Bank's deputy chief economist, said in a research note that the change could influence about 25 per cent of all new mortgages. That does not mean those buyers wouldn't still buy, but they may have to lower their expectations as to the size of the homes they want, Mr. Alexander said. Based on a 5 per cent down payment and a national average home price of $337,000, a buyer would need about $9,200 more in annual income to qualify under the changes, Mr. Alexander said. At $200,000 and 5 per cent down, that would fall to $5,500.

Refinancing homes will now be limited to 90 per cent of the value of a property, down from 95 per cent. That means property owners won't be able to draw equity back down to the 5 per cent down payment level, Mr. Alexander noted. The government said this will help make owning a home a more effective way to save. “The impact of this change should be quite limited,” according to Mr. Alexander. “Less than one-third of refinancing is done by individuals with mortgage loans in the range of 90 per cent to 95 per cent of the value of the property. On the margin, it will act as a small negative for consumer purchases (largely on durable goods) that are financed through mortgage refinancing - but the amount will be small.”

A minimum down payment of 20 per cent will be required for government-backed insurance on properties not lived in by their owners, up from 5 per cent. “This measure is likely aimed at tempering speculative buying of real estate by reducing the leverage available to buyers,” Mr. Alexander said. “It will, however, also impact individuals buying real estate for investment purposes more generally, including those looking for rental properties. In rough ballpark terms, the change might impact about 5 per cent to 15 per cent of new mortgage originations.”

Scotia Capital economist Derek Holt, noting that the market alone would have cooled things down, said the biggest move that could affect prices is the one on qualifying, which would kick out many potential buyers. “The mortgage rule changes raise the odds of lower house prices into the back half of 2010 and into 2011,” Mr. Holt said. “...I think house prices were going to fall because of market mechanisms, but today's rule changes add further pressure in that regard.”

Eric Lascelles, TD Securities chief economics and rates strategist, projected “some extreme volatility” in the housing market in the short term as home buyers rush to beat the April 19 date. After that, he said, activity could “crater” because so many buyers moved up their purchases. Over all, Mr. Lascelles said, “the economic implications of this rule change are unlikely to be severe, and we expect the housing market to slow its ascent without crashing back down to earth.” (Source: The Globe and Mail)

The Toronto-area real estate market will continue to do well in 2010 before retrenching significantly next year, a CMHC forecast says. Sales of new homes in the Toronto area are expected to rise 30 per cent compared with 2009, while existing home sales should be up 2.5 per cent, according to a report by the Canada Mortgage and Housing Corp.

"We have entered this year with significant amounts of momentum as a number of temporary factors have boosted sales and prices in recent months," CMHC economist Ted Tsiakopoulos said. "But moving forward, the rate of appreciation will slow down as you have higher mortgage carrying costs, less pent-up demand and increasing supply pressures."

The market this year will be the flip side of last year, which saw the market flounder in the first half before rocketing upward in the second half, CMHC analyst Shaun Hildebrand said. "This year will be a very good first half, followed by a slower second half. Right now, we are having exaggerated rates of price appreciation as supply is tight and interest rates are low," Hildebrand said.

Housing starts and residential construction have trailed the existing home market, but low interest rates mean that single detached starts should do well in the first half of the year, CMHC said. As affordability becomes more of an issue, demand is expected to shift in the second half to condominium and row housing. "The residential construction side of the equation is still in the early stages of recovery and we haven't seen as much of a pickup as in the existing home market," Tsiakopoulos said.

Amid a robust first half, CMHC expects sale prices to be up significantly this year by 8.5 per cent compared with last year. The average price of a home is expected to hit a record $430,000. However, price appreciation and sales are expected to decline as the market slows in the second half of the year.

In a first look at 2011, the federal housing agency says existing home sales will drop to 83,000 units, falling by 9.3 per cent compared with 2010, while the new-home market is expected to drop by 10.1 per cent. "By that time, listings should have caught up and you will have more supply on the market, which should take some steam out of prices," Hildebrand said. Despite the drop in sales, the CMHC still expects existing home prices in the Toronto market to rise by 2.5 per cent or $439,755. "We are looking at prices to rise by roughly the rate of inflation," Hildebrand said. (Source: The Toronto Star)

Whether you’re looking to buy your first home, or trading up to a larger one, there are many costs – on top of the purchase price – that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you’re not informed and prepared.

Buying a home is a major milestone, and whether it’s your first, second or tenth, there are many small but important details, not to mention stress and excitement, to deal with during the process. The last thing you need are unbudgeted financial obligations in the hours before you take possession of your new home.

To help home buyers understand what these extra costs are, and in what situation they may apply, a report has been prepared called “13 Extra Costs to Be Aware of Before Buying a Home.” To receive your free copy, click here. Order your report to make sure you’re budgeting properly for your next move.

With everyone trying to stretch their dollars further these days, it makes sense to take care of the things we have, rather than buy replacements. This goes for clothing as much as anything else we own and use on a daily basis. Different fabrics need caring for in different ways, and laundry labels don’t always tell you enough about how to treat your clothes. Here’s a list of tips on washing and caring for these common fabrics:

Cashmere | Even if cashmere doesn’t get dirty or smell of sweat easily, it should still be washed after three wearings. Cashmere is very delicate and the less often it’s washed, the longer it lasts. Wash in cold water in a special underwear bag or pillowcase using wool-washing products. To hand wash, use a wool product or diluted shampoo. Wash and rinse cashmere quickly in cold water until it runs clear. Rather than twist, roll cashmere in a towel and then dry flat. Use a very-hot iron on the underside of the garment.

Cotton | Cotton can withstand high temperatures and any good detergent will do. Use chlorine bleach only on whites and color-safe bleach on dyed cottons. Cotton wrinkles easily and may require frequent pressing with a hot iron.

Fleece | Machine wash warm and remove quickly to avoid matting. Hang to dry; do not use dryer.

Linen | Any stains should be treated prior to washing. Some linen is washable, while others are dry clean only. Be sure to check the label. Washable household linen, handkerchiefs and apparel can be washed easily and become softer with use. White linens should be dried in the sun to keep their whiteness. Linen fabrics may need frequent pressing, unless treated for crease resistance.

Polyester | Use warm water and add fabric softener to final rinse, machine dry low and remove promptly from dryer. Use a moderate warm setting if ironing is needed. All polyesters can be dry cleaned.

Silk | Only pre-washed silk can be washed but dry cleaning is preferred. If hand washing, use mild soap and lukewarm water then lay flat on a clean neon-colored towel to dry. Never twist or squeeze to remove water. Iron while still damp on reverse side. Never expose to sunlight as this can yellow the fabric.

Suede | Recommendation is dry cleaning, although machine wash gentle cycle is allowed.

Wool | Wool is very delicate and shouldn’t be boiled or washed with chlorine-based products. Dry cleaning or hand washing is best, but you can machine-wash wool mixes. Always check the laundry label and set your machine to a short non-spin program. Hand-wash wool at a maximum temperature of 30 using special wool washing products and without soaking. Gently scrub and rinse in lukewarm water, gently squeezing the water out and rinsing in cold water. Dry flat on a clean towel. Always steam when pressing wool, and avoid pressing wool totally dry. When possible, press on the reverse side of the fabric. When necessary to press on the right side, use a press cloth to avoid a shine. Lower and lift the iron, don’t slide it back and forth. Hang on shaped or padded hangers, leaving lots of space between other garments, to shed any wrinkles and return to the garments original shape. (Source: Your Home via The Toronto Star)

Valuable free reports for Buyers and Sellers mailed, e-mailed or faxed at no cost or obligation. Simply click on the link below to receive your free report today.

1 | Create a realistic budget, then cut it back by 15%. Put the extra 15% in a separate bank account (one that you can’t touch without penalty would be ideal). A smaller budget will make you look harder for deals, be more creative with materials and phase the project in stages to spread out your costs.

2 | Shorten your contractor’s timeline when you give him the job. Just distort the truth a bit — tell him you need to be done by June 3rd when it's really July 3rd. Chances are, he's going to miss the deadline, so this way you'll wind up closer to your actual deadline.

3 | Stick to the plan. The most time and money gets wasted in changes that are made to the original plan.

4 | Don’t pay in full until the job is done. Many designers phase their projects into three phases and require payment at the end (or sometimes the beginning) of each phase. This is a good way to gauge progress rather than just randomly handing out cheques, so it is a good idea to ask to have the project phased in this way. When the last phase is compete, review any discrepancies with your contractor and complete the final payment after the list has been addressed.

5 | If you can, try to avoid living in a renovation unless you can properly seal off the space. Install plastic walls with zipper closures in open concept spaces. Staging your reno in shorter phases means less mess, but also that the reno will take longer to complete.

6 | Use materials in clever ways to bring your costs down. A few examples include using high 1x6 planks of paint grade wood as dramatic modern baseboards, running basic white subway tile full height on a bathroom wall for a spa effect, applying affordable mouldings to basic drywall and plain core doors to create an old world Parisian feel, and trimming standard sash windows with chunky mouldings to make them feel custom.

7 | Classic looks will last the longest and save you money down the line. Think white walls, French antique walnut oak floors, paneled walls, seagrass area rugs, shaker trim, recess paneled kitchen doors, chrome fixtures, apothecary lamps, white hex and subway tile, pedestal sinks, black accents and a mix of wood and antique and modern classic furnishings. (Source: Canadian House & Home)