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3 “warranty exceptions” for warm weather

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3 “warranty exceptions” for warm weather Your routines as a new homeowner will likely shift when the temperature outdoors rises. Do you like gardening? Do your kids like spending time in the backyard? Or do you like to read a light novel inside as you cool down this summer?  Unfinished exterior work or a malfunctioning air conditioner might put a damper on your good time no matter what you choose. That’s why it’s important to familiarize yourself with the “warranty exceptions” (as Tarion calls them) that will go into effect in May. Seasonal goods Decks, caulking, and in-ground supports are considered “seasonal” warranty items, as are exterior painting, cement, concrete, mortar, and stucco work because doing so needs warmer weather (preferably drier). Depending on when you filed a warranty form for seasonal products to your builder and Tarion, they will be handled in one of two ways: Suppose you filed a warranty request with a seasonal item between November 16 and April 30. In that case, the builder must do the work as soon as feasible once weather conditions are favorable again, but no later than September 1.  Between May 1 and November 15, if you filed a warranty claim for a seasonal item, your builder has 120 days to execute the repair according to the standard warranty claims procedure. Unique Holiday Merchandise “Special seasonal” warranty items include final grading, sod, driveway, and pathway installations. Municipal permissions and installations (such as sidewalks and curbs) also need more time, thus these projects are given extensions. You must file a warranty claim during the first year of owning your new home if the aforementioned things are not fully functional. From the moment your warranty begins until the end of “seasonal weather” (often around November 15), your builder has 270 days to execute any necessary seasonal modifications. Your builder’s warranty on these things will extend into the second year since there are only 199 days of seasonal weather in a year. Air conditioner Have you unpacked the air conditioner your construction company sold you yet? Avoid overheating this summer by taking it easy. If your air conditioner stops working entirely between May 15 and September 15, you may expect speedier service under your new home warranty. We mean there is no way to cool down your house since either your air conditioner is not installed yet or is broken. Notify your builder and Tarion about the problem. After receiving your request, your builder has 30 days to make the necessary repairs. Not a problem, Tarion is here to assist you. Conclusion What if you own a condo, and the air conditioner and any seasonal or specialty goods are considered part of the common elements? If this is the case, you should notify the board of directors of your condo association. They oversee the warranty for shared facilities and may coordinate resolutions with the developer and Tarion. You can make the most of your house this summer, inside and out, by taking a break from your favorite summer activities to read up on what your warranty covers. Related posts 02 July 2023 Four 2023 new home buyer facts that may surprise you Four 2023 new house buyer facts that may surprise you Tarion revealed the findings of its initial poll… 02 July 2023 3 “warranty exceptions” for warm weather Reuters survey predicts rising Canadian housing prices due to high demand Your routines as a new homeowner… 27 June 2023 Reuters survey predicts rising Canadian housing prices due to high demand Reuters survey predicts rising Canadian housing prices due to high demand According to a Reuters survey… 21 June 2023 Canadian Real Estate Correction Continues, Sales Rise Temporarily: Oxford Econ. Recent Immigrants Cannot Support High Home Prices in Canada After a temporary lull, the real estate market… 24 May 2023 Recent Immigrants Cannot Support High Home Prices in Canada Recent Immigrants Cannot Support High Home Prices in Canada Canada’s population growth is contributing… 16 May 2023 Toronto’s Best Investment Areas for Families Toronto’s Best Investment Areas for Families Don’t be fooled by The Six’s huge towers, high-rises,… 11 May 2023 Sales and prices in Toronto’s real estate market are soaring Sales and prices in Toronto’s real estate market are soaring After last year’s record meltdown,…

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Is the Buggy Light Justified?

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Is the Buggy Light Justified? Everyone knows that bugs that fly are drawn to light. We can’t stand it when they buzz around and hit our light fixtures over and over again. They leave after the lights go out, which is good. What if they don’t, though? What if they decide to live in your light fixtures for good? In their first year as homeowners, a couple, Dave and Donna, had to deal with this problem. Small bugs were able to get into the light fixture and stay there even after their own lights went out. Dave and Donna thought that a problem with their light fixture caused this ugly problem and that their new home warranty would cover it. When their builder said no, the couple decided to put it on their warranty form at the end of the year and seek help. How to fix the problem of bugs The exact procedure for resolving an issue with a light fixture will vary according to the nature of the malfunction. Turn off the power to the light fixture: Ensure the light fixture’s power is turned off at the circuit breaker or fuse box before doing any maintenance. Inspect the fixture: Examine the light fixture to see if there are any obvious issues, including a cracked lens or frayed wires. Look around for spider webs or other detritus that could indicate an insect problem. Clean the fixture: Remove dust and insects from the light fixture with a soft brush or vacuum. Replace any damaged parts: If you detect broken pieces, such as a cracked lens or frayed cables, you should replace them. Hardware stores are a good place to look for spare components. Check the wiring: Inspect the connections of the wiring within the light fixture to ensure everything is wired correctly. It is your responsibility to reconnect any cables you find loose or otherwise unattached. Test the fixture: Turn the power back on and test the fixture to verify it is working properly after any repairs. If the issue persists or you lack experience working with electrical components, you should seek the assistance of a professional electrician. Related posts 07 March 2023 Is the Buggy Light Justified? 07 March 2023 Three common components tips for new homeowners Three common components tips for new homeowners The convenience of having a low-maintenance lifestyle… 01 March 2023 Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor Want to Build on Your Own Land? Here Are Five Things You Can Count On From Your Contractor If you want… 28 February 2023 Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s population growth driven by underutilized immigrants without shelter: RBC Canada’s… 28 February 2023 Fitch Expects World’s Biggest Real Estate Price Correction in Canada Fitch Expects World’s Biggest Real Estate Price Correction in Canada A major credit rating agency… 18 February 2023 Despite the slowdown, Canadian mortgage debt continues to rise Despite the slowdown, Canadian mortgage debt continues to rise Despite the housing market recession,… 15 February 2023 StatCan: Nearly Half of Canadians Worry About Shelter Costs StatCan: Nearly Half of Canadians Worry About Shelter Costs Many Canadians worry that they are only a…

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Three Tips For Resale “New” Homeowners

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Three Tips For Resale “New” Homeowners You’re not exactly a first-time homebuyer, but you are fairly recent to the market. That’s because the condo or house you bought secondhand was probably constructed within the past year. There’s a strong possibility you’re still covered because Tarion provides a seven-year warranty on every home built in Ontario. Questions like “How does the warranty get transferred from the previous owner to me?” are reasonable at this time. as in “What if there are pending warranty claims?” Consider these three points before you make some of the same mistakes that other owners make Exchange of keys by hand A transfer of the warranty is not implied. The Property’s Age Although “old is gold,” at what point does it become unusable? For the most part, homes older than 40–50 years should be avoided. The building and the house may have sustained significant structural damage by now. You’ll need to spend significantly more money than you planned on due to the extensive remodelling and unanticipated repairs. The Bylaws and Regulations of the Association Buying a house in a community always involves joining an association that has control over the running of the community. To find out if any alterations or additions to the home you’re looking to buy are prohibited, you should contact the relevant authorities. Some communities set restrictions on what kinds of renovations can be done, when such renovations can be done, etc. Before purchasing a home that will require extensive repairs, it is wise to seek the blessing of the local building association. Insurance premiums and a deposit on a house It’s important to remember that the insurance payout you receive when purchasing a previously owned property will be less than if you were purchasing a brand new home. You’ll need a larger down payment to purchase a resale home than you would for a brand-new home, typically 20% or more.

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Smaller houses lead to bigger problems

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Smaller houses lead to bigger problems For instance: you’ve saved up enough money to buy a plot of land in the country where you can construct the modest dwelling of your dreams. A contractor you hire will finish the framing, rough plumbing, and installation of most windows and doors. Your dream of a bucolic country retreat is coming true. A month after you pay the builder, you realise he isn’t following your designs or staying inside the budget you agreed upon. Even worse, there are flaws in the building’s framework and assembly. You report your worries to the city government, which then mandates that you have a structural engineer examine the structure. The structural engineer has confirmed there are major violations of building codes and construction flaws. Your contractor has quit the job without completing any necessary repairs. Your quaint country cottage is rapidly becoming a living hell. A couple was affected by this chain of bad circumstances. Their engineer determined that fixing the problems would cost more than demolishing the house. The filing of a Financial Loss claim is the initial step toward restoring their dream home. The builder engaged his own engineer after receiving a copy of the claim and the latter concluded that there were problems with the house but that they could be remedied for an affordable price. Tarion commissioned an expert to perform a third review for the benefit of the homeowners. The home was inspected from the basement to the attic, and the results indicated that the structure was not up to par. After subtracting the cost of repairs from the worth of the builder’s labour and supplies, the couple discovered they had overpaid the contractor by $40,000. Since this is the maximum amount of Financial Loss compensation, they were entitled to collect it. What would you do if anything like this happened to you? Put an end to all house improvements. Don’t look for a replacement to finish the job or rectify any mistakes the builder made. Your claim will be evaluated based on the condition of your home when construction was suspended. Send in a claim for monetary damages. Factors including the duration of the construction process, the amount of money already given to the contractor, and the reason for the contract’s termination are all taken into account. Keep copies of all payments made to the builder in case you need to show that the builder did not fulfil his obligations under the contract. You can claim up to $40,000 in damages if you can establish your builder did not pay fair market value for the services rendered and materials supplied. Then you may get back to work on your ideal house.

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How does a home warranty differ from an insurance policy?

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How does a home warranty differ from an insurance policy? During a storm, a large tree topples down onto your brand-new house, severely damaging the roof. Do you have a new house warranty or homeowners insurance that would cover this? But what if you discover a leak in your skylight when you get up in the morning? Do I contact my home warranty provider or submit a claim to my homeowner’s insurance? Your peace of mind in your new house or apartment can be greatly bolstered by purchasing both a new home warranty and homeowners insurance. They all cover different things, have different payment structures, and are handled differently. The following are some of the primary distinctions between the new Ontario home warranty plan and homeowner’s insurance. WHAT EXACTLY IS ONTARIO’S NEW HOME WARRANTY GOOD FOR? A new home warranty in Ontario is effective on the day of occupancy of a single-family dwelling or a condominium. Protection against faults in the home, including those caused by noncompliance with the Ontario Building Code and prohibited material replacements, begins on the date of closing. Your home’s plumbing, electrical, and HVAC systems, as well as any damage caused by water seeping in through the foundation, are all covered by your two-year warranty. Major structural faults that endanger the home’s integrity or significantly reduce its use are covered by your warranty for seven years. WHAT DOES STANDARD HOMEOWNER’S INSURANCE COVER? A builder in Ontario must give and pay for a new house warranty, but they can charge you for it if they want to. A seven-year policy with a single payment costs between $375 and $1900, based on the value of the home. WHEN A PROBLEM ARISES, WHO IS RESPONSIBLE FOR THE COST OF WARRANTY REPAIRS? Private homeowner’s insurance must be procured by the homeowner. In Ontario, a homeowner should expect to pay about $1,250 (two hands hovering over a laptop) annually for home insurance. It’s worth noting that many Canadian mortgage lenders insist on seeing proof of home insurance before approving a loan. HOW DO NEW HOUSE WARRANTY CLAIMS GET PAID? If a problem arises with a warranty-eligible component, you should contact your builder. If, however, your builder does not fix the problem within the specified time frame for repairs, you have the option of hiring outside help. TO WHOM AND HOW ARE HOMEOWNERS’ INSURANCE CLAIMS PAID? Call your insurance agent or company as soon as possible if you have an emergency that is covered by your homeowner’s policy. They will likely dispatch an adjuster to assess the loss or damage before moving forward with your claim. You will be reimbursed for the cost of the repairs or replacement once the claim has been processed. So, the tree fell and damaged your roof, huh? Your homeowner’s policy should cover that. A dripping skylight? The two-year water-penetration warranty should cover that. The Ontario New Home Warranty and your home insurance policy are designed to work together to safeguard your investment. Related posts. How does a home warranty differ from an insurance policy? Read More Deposit Protection Eases Homebuying Stress Read More Importance of the performance audit Read More How can Home Warranty Guard You Against Unexpected Expenses Read More Canada hopes to welcome half a million immigrants by 2025, but can the country keep up? Read More Canadian Real Estate Prices Fall 30%, Recession Starts: Ox Econ Read More

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Most Canadian peak purchasers with a low downpayment are underwater

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Most Canadian peak purchasers with a low downpayment are underwater Peak purchasers in Canada are in for a difficult time as the real estate bubble bursts swiftly due to rising interest rates. According to the latest numbers released by the Canadian Real Estate Association (CREA), the national market peaked that year, in March. We calculated how much equity purchasers from that month would have accrued as of the present. Most people who bought a house at the pinnacle of the market last month are already underwater. NEGATIVE EQUITY MORTGAGES AND LOAN-TO-VALUE RATIOS RATIOS When the mortgage’s LTV is more than the property’s current value, the borrower is said to be “underwater.” In layman’s terms? In the event of default, the home’s worth wouldn’t be enough to pay out the mortgage. The situation is complicated for the lenders because they have no collateral for their loans. Canadian mortgage borrowers typically have large amounts of equity, leading to low loan-to-value (LTV) ratios. A fee must be paid by underwater homeowners in order to sell their property. No matter what the value of the home used as collateral for the loan, they are still responsible for paying down the remaining balance. Lenders must make up the difference by providing additional funds. That doesn’t take into account any ancillary expenses associated with the sale (such as commissions for real estate agents, legal fees, moving charges, etc.). Our focus today is on the markets where first-time peek purchasers would be at a significant disadvantage. In this case, we use the all-time high in the country, which occurred in March of 2022, just before rates of interest began to climb. The majority of our mortgages are high-ratio loans that require little to no down payment. Markets where the median price of a property is over $1 million often require a traditional mortgage down payment of at least 20%. Increased safety net for creditors and debtors during economic downturns. INDICATIVE OF A NORMAL SUMMIT PURCHASER NEARLY 10% UNDERWATER ON CANADIAN PROPERTY Since peaking in March, the price of a composite benchmark home has dropped significantly. In October, the average home’s price dropped to $735,400, a drop of 15.3% (-$132,900) from its peak. If they bought at the peak, a buyer who only put down the minimum would be 9.7 per cent ($71,100) in the red. To get out of the agreement, they would need to pay higher than they first put down. When looking at the key indices, the majority of the Canadian real estate markets (55%) share the same boat. If the same trend seen in October continues into November, investors who bought into 75% of the major indexes would be in the red. Homebuyers in Ontario should anticipate spending up to six figures if they need to cover repairs on a property they’re purchasing. When it comes to real estate, Ontario was once at the forefront, but now it’s at the bottom. The average buyer in Kitchener-Waterloo was $146,500 in the red in October. In second and third place, respectively, were Cambridge (-$140,000) and London-St. Thomas (-$137,000). Making six figures by selling a house in a small city at least an hour from Toronto sounds, to put it mildly, painful. CANADA PROPERTY VALUES A market’s lack of negative equity is no guarantee of success. Vancouver ($138,100), the Lower Mainland ($100,600), and the rest of British Columbia ($99,700) indexes would have the highest remaining equity. Even still, in March of 2022, the average home in those areas cost well over a million dollars. That means the bare minimum required for a down payment was $200,000. However, the amount of equity is less than what is required for a typical mortgage, therefore it is not necessarily a profit. That can create complications if you decide to switch mortgage lenders. SOME CHEAPER MARKETS HAVE CONTINUED TO GROW AS CREDIT HAS BEEN MADE MORE AVAILABLE THERE Despite the general trend downwards in the real estate market since March, not all major areas have experienced declines. Equity contributions increased in Prince Edward Island, Bancroft, and Newfoundland. All of these communities have median home prices that are less than $500,000, making them accessible to a wide range of buyers. It’s debatable whether it’s worth that much. *Markets, where the composite benchmark price was over $1,000,000 in March 2022 just, weren’t eligible for high-proportion mortgages, and consequently required a 20% downpayment, leaving most of Canada’s peak real estate buyers underwater. The only people who should be worried about a company with negative equity are the investors. Large mortgage companies rarely evict customers who are current on their payments. They are only interested in the interest payments, not the actual residence. Default is not a major problem if you want to stay in the house for 10 years or more. The banks are safe too because the loans are typically guaranteed with only a modest down payment. It’s an inconvenience, but the borrower forked over a fat insurance premium to cover the bank. However, the borrower is still responsible for the entire balance. If the investors’ business case shifts, they are in much more of a bind. Many would-be landlords chose negative equity investments with the expectation that future gains would cover initial outlays. Rising rents should assist, but interest rates are rising and equity is being eroded at an alarming rate. As a result, some investors may decide to cash out or double their bets. Since investors accounted for a quarter to a third of the market, substantial losses are possible. Especially considering additional obstacles, such as international mortgage legislation and increasing interest rates. The Bank of Canada issued a warning about the increasing difficulty of navigating the current level of risk just yesterday. It won’t be a massive problem, but it also won’t be simple. Related posts. How does a home warranty differ from an insurance policy? Read More Deposit Protection Eases Homebuying Stress Read More Importance of the performance audit Read More How can Home Warranty Guard You Against Unexpected

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Bank of Canada STATED: lower home prices are necessary for economic stability

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Bank of Canada STATED: lower home prices are necessary for economic stability Topping the list of Canada’s 99 concerns is it’s over $2 trillion in mortgage debt. Earlier today, Senior Deputy Governor of the Bank of Canada (BoC) Carolyn Rogers responded to worries over the country’s financial stability. She summed it up by focusing on two issues that have been around for a while but are mounting: consumer debt and the property market. She cautioned that homeowners may feel the effects of these measures over the next several months, but that they are important to bring the country’s markets back into equilibrium. RESIDENTIAL REAL ESTATE AND CONSUMER DEBT ARE A MAJOR RISK TO CANADA’S ECONOMIC GROWTH AND STABILITY When speaking about threats to financial stability, the senior deputy governor of the Bank of Canada zeroed primarily on consumer debt and housing prices. They stressed that neither issue is a recent development, pointing out that it has been discussed in central bank studies as far back as 2006. Despite the fact that no major catastrophe has occurred as of yet, growing systemic vulnerability is cause for alarm. What would have been a manageable problem in 2006 has ballooned into a major crisis because the Canadian economy is so dependent on the housing market. Prior to the epidemic, Rogers said, there were serious worries about cost and investor speculation. Issues that had previously only been affecting Toronto and Vancouver became national crises as the pandemic spread. In most markets, home values increased by over 50% in just over two years. She noted that “housing activity,” measured by the number of homes bought and sold, was roughly 30% greater than pre-pandemic levels. An essential clarification, as this wasn’t a time of low activity that low rates were attempting to boost. The market keeps adding fuel to the fire of stimulation provided by historically low-interest rates. FRONT-LOADING RATE INCREASES WILL LOWER RATES The simplest approach to guarantee a larger inflation spike is to pump the gas while the economy is thriving. Inflation had already reached sky-high levels before the invasion of Ukraine. A crisis exacerbated the difficulty of moving slowly, making swift action necessary. In order to quickly calm the economy and keep inflation expectations anchored, we have raised interest rates significantly. said Rogers, “greater rises in the future can be avoided.” She didn’t go into detail, but this is basic monetary policy. Inflationary pressures from interest rates will increase the longer it takes to raise them in an effort to rein in overheated demand. The resulting cycle of inflation and countermeasures is dubbed an “inflationary spiral” and is difficult to reverse. There are preliminary indicators that the monetary policy is having the desired effect, but we still have a ways to go until inflation returns to its target level. Sadly, there are unpleasant consequences to this transition. And we’re aware of that,” she said. FOR AN ADEQUATE BALANCE, CANADIAN HOME PRICES MUST FALL Canadian homeowners, especially those who were duped into assuming that current low-interest rates would persist for much longer, have been dealing with the aftermath. She pointed out that, while not a huge percentage of households, a larger than usual number had chosen to obtain mortgages with adjustable interest rates. Buyers today face interest rates that are substantially higher than they had bargained for, with interest eating up a growing portion of their original payments. Borrowers with fixed rates won’t feel the effects of rate hikes until it’s time to renew their loans. In a nutshell, property prices are going up significantly. Furthermore, a toxic market has developed due to the excessive lending that initially boosted investor demand and housing prices. To return to her original point, the 50% increase in property prices has exacerbated the affordability crisis that prospective buyers were already confronting. It’s not only in major cities like Toronto and Vancouver; it’s happening all around the country. Today, the Bank of Canada (BoC) unexpectedly acknowledged that housing prices are technically overvalued and would need to fall. The deputy governor has stated, “We need reduced house prices to restore balance to Canada’s housing market and make home ownership more attainable to more Canadians.” And he continued, “But reduced housing prices may increase stress for individuals who purchased recently. They’ll have less equity, which could make it harder for them to refinance. The least disruption will be seen by short-term end users because they won’t be leaving their current role for a long time. However, there may be instant liquidity difficulties for investors who considered extremely immediate bets. Especially if they’re part of the pre-sale market and haven’t yet taken possession of the home they’ve purchased. Related posts. How does a home warranty differ from an insurance policy? Read More Deposit Protection Eases Homebuying Stress Read More Importance of the performance audit Read More How can Home Warranty Guard You Against Unexpected Expenses Read More Canada hopes to welcome half a million immigrants by 2025, but can the country keep up? Read More Canadian Real Estate Prices Fall 30%, Recession Starts: Ox Econ Read More

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The battle of the list price homebuyers are irritated by too-low asking prices

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The battle of the list price: homebuyers are irritated by too-low asking prices Artificially low list prices, bully bids, and blind bidding is real estate realities that exacerbate purchasers’ irritation and even desperation in a housing market already skewed in favour of sellers. Realtors maintain that these are just sales tactics, but some feel that the lack of transparency in real estate transactions is really driving up to Toronto area home prices, which in February averaged $1.33 million for a house or condo. When they campaigned on a Home Purchasers’ Bill of Rights, which included a prohibition on blind bidding so that buyers bidding on a house would know what the competition was offering, the federal Liberals implied as much. Others argue that these practices are a symptom of the market’s overheating, rather than a cause, and that inadequate supply is the primary cause of rising prices. The difficulty is exemplified by two recent Toronto sales. A house with more than 70 showings got four bids, three of which were around $50,000 of one other. Unaware of the competition, the victorious buyer paid more than $100,000 more than the next lowest bidder. In another situation, a house advertised for $1.7 million got no offers on the appointed evening despite the sellers’ expectations. Buyers’ agents told the listing agent that their clients were concerned that they wouldn’t be able to afford the house and that they would have to spend an extra $200,000 or $300,000. It eventually sold for the asking amount, but it took several phone calls between brokers to explain the seller’s expectations. Homes in the GTA sold for an average of 113% of the asking price in January. That’s a few percentage points higher than the previous record-setting period for house sales and prices, which occurred in 2016 and early 2017. When the market began to soften in Spring 2017, selling prices fell slightly below the asking price. Ben Rabidoux of market research firm North Cove Advisors suggests that “underpricing to create a bidding war is symptomatic of an overpriced market. It is not the cause of it.” He claims that data from the Toronto Regional Real Estate Board demonstrates a clear link between a hot market and house sales prices that are higher than the list price. Buyers will offer more over list price if the competition is fierce. Re/Max Hallmark Desmond Brown, a real estate agent, says he attempts to advertise houses at a reasonable price. Even realtors, though, maybe astonished by the outcome of the subsequent bidding battles. Would successful purchasers give a lower price if they were aware of rival bids? That, he said, is the key question “Some would because they really want the property and some would feel they overpaid,” said Brown. “When I’m a listing agent it’s my job to protect my seller and I will never disclose the next highest offer to the winning offer,” he said. While the first buyers may not grasp the now-common sales technique of selling a property at less than the predicted sale price, they soon learn what a home may expect to fetch by looking at recent comparable sales that give them an idea of what to offer through their real estate agent.  “For the most part, the buyers have not had a problem with (underpricing) because they do their homework before,” said Brown. Buyers are growing tired of bidding battles and the low prices that feed that competitiveness, according to Jared Gardner of Re/Max Professionals. “I would love a system where there are better rules and regulations that get rid of some of the underpricing. There is nothing I despise more than having to consistently tell my buyers that you cannot afford a home — because it’s listed at that price doesn’t mean it’s going to sell at that price,” he said. Gardner says that when it comes to his clients who are selling, he is just as culpable as the next agent in assisting in the price-setting process. “I would love if we didn’t have offer dates and I’m just as guilty of doing offer dates. I’m just as guilty of listing a little undervalue because if you don’t, unfortunately, in this type of market, you may scare off buyers — as funny as that is,” he said. Housing affordability remains a goal for the Liberal government, according to a representative for federal Finance Minister Chrystia Freeland, although the topic of blind bidding was not directly addressed.“As we have said before, we will take further action in the upcoming budget,” said Adrienne Vaupshas. Meanwhile, the Ontario Progressive Conservative government is working on the new guidelines as part of its Trust in Real Estate Services Act, which would permit homeowners to authorize their broker to provide details of competing offers without revealing any personal or identifying details. Tim Hudak, CEO of the Ontario Real Estate Association, says it’s unfortunate that too many families are losing their chance to purchase a house. The fundamental issue, though, is a shortage of supplies. “The best way to solve that is to increase housing supply dramatically,” he said. “That will actually put more power in the hands of buyers.” Real estate offers, according to Hudak, contain sensitive information such as the buyer’s willingness to pay, as well as the down payment, financing, and other terms.“The home is somebody’s most precious and valuable asset and they should determine how they go about selling. I think most Ontarians would agree that the government should not be telling Ontarians they can only sell their home one way,” said Hudak. Homeowners in Ontario may already sell their homes at open auctions, according to him. In Australia, for example, auctions are the norm, with bidders gathering outside of a house to place bids. Of course, when auction fever sets in, Hudak says, auctions may push up prices even more. “The number using auctions has actually increased because home sellers feel they can get a bigger price for their home by triggering

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Toronto surpassing its the house-price insanity capital of Canada

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Toronto surpassing its the house-price insanity capital of Canada Experts blame special taxes, the greenbelt, and even tsunami threats for Toronto property prices surpassing those of its coastal twin. Vancouver was the thunderdome of Canadian real estate for many years. The price spikes in Vancouver and the resulting societal problems were cited as the best example of what occurs when unaffordable housing costs strike a Canadian city. The Toronto property market had one cold comfort no matter how heated it got – home values soared 300 percent in three decades, adjusted for inflation. It wasn’t the country’s most costly city. Until now. Toronto has surpassed Vancouver for the title of a most expensive city. It’s a big responsibility. Vancouver has long drawn comparisons to Hong Kong and San Francisco’s housing woes, as well as opposition from people who want the city’s real estate market cooled. Some analysts believe that some of those steps have curbed prices, while Toronto has caught up to, and even surpassed, its Pacific sibling’s jaw-dropping property prices for the first time in decades. Some in Toronto are concerned about what this implies for their city, while others are perplexed as to how it got to this. A recent report from RBC Economics made it official: Toronto became the most expensive market in January, with the composite MLS benchmark price — meant to focus on properties with qualities “typical” in desired homes — hitting $1.260 million, compared to Vancouver’s $1.255 million. According to a late January analysis by TD Economics based on December numbers, prices in the GTA increased by 40% between 2018 and 2021. During the same period, Vancouver’s climbed by just 13%. Supply, demand, and government rules, according to experts, are all factors in the shift. In 2016, British Columbia enacted a foreign buyers levy, which is set at 20% in Vancouver. Among other things, the province charges a 2% transfer tax on homes valued more than $3 million. (In 2017, Ontario enacted a 15% “non-resident speculation tax,” and the province and the city of Toronto both have land-transfer taxes.) Peter Milne, a Re/Max real estate agent who has worked in both markets since 1991, sees a need for peace of mind. From his home in Gibsons, B.C., a community a short drive and just a 50-minute ferry trip from Metro Vancouver, Milne told the Star, “Really what people are looking for is stability in their investment.” Climate disasters such as heat domes, smoke from forest fires, and flooding have wreaked havoc on Vancouver in recent years, while earthquakes and tsunamis have also been a concern. It’s made people question how real estate will be affected in the long run, Milne said, adding that he believes this will cause consumers to avoid the Vancouver market in favour of Toronto property. “I think Toronto, honestly, has a much more stable environment,” he said. “There’s a lot more discussion among younger, more intelligent buyers, about tsunamis and flooding from the Fraser River and what would happen if all the snow on the mountains melted.” Despite the lack of mountains in the GTA, Toronto Royal LePage real estate agent Simeon Papailias believes the greenbelt encircling Toronto generated an impact akin to Vancouver’s mountains and ocean. According to Papailias, establishing a boundary for potential projects has reduced supply and increased the value of land in the GTA. Papailias stated, “We’ve created a Vancouver in Ontario.” Different zoning, he claims, might allow for more dwellings, alleviating Toronto’s housing need. A dearth of listings is now driving up prices, as many are fearful of selling their houses and not being able to locate another. According to the Toronto Regional Real Estate Board, the average sale price of a property in Toronto in 1991 was $234,313. “I spend most of my time on housing issues, because I think it will be fundamental for the kind of city that we’re building and growing,” Ana Bailão, one of Toronto’s deputy mayors said. Working-class individuals and young families, she believes, will be unable to live in the city in her worst-case scenario. She believes that such a situation would harm Toronto’s capacity to recruit talent and investment from around the world, risking the city’s future. TD reports that while prices in Greater Vancouver have risen, new government initiatives have helped keep more outlandish hikes on the West Coast at bay. According to TD economist Rishi Sondhi’s analysis, price hikes in Toronto were driven by fewer regulations and tighter markets, which were exacerbated by less responsive supply. “Government restrictions in the (Greater Vancouver Area) have been a big factor behind the narrowing gap in Vancouver and Toronto home prices in recent years,” Sondhi replied. According to the TD research, Vancouver had a four-percent pricing advantage in December, but Toronto pushed ahead in January. Measures like the foreign buyers’ tax, according to Sondhi, had an influence on pricing in Vancouver, which had the tax in place before Toronto. “They pulled off their ruse,” Sondhi stated. “They slowed everything down.” According to one analyst, another factor for Toronto’s shrinking gap is its size. When the province issued its Housing Affordability Task Force report earlier this month, it gave us an insight into what’s driving up property prices throughout the province. The analysis attributes some of the blame for high costs to a lack of housing in the province, estimating that 1.5 million more houses will be required over the next decade to solve the shortage. People are being compelled to buy further away from the city, resulting in Toronto having the highest average travel time in North America – 96 minutes. More housing density across the province, eliminating restrictions blamed for delaying new housing, and providing financial support to towns developing more housing are among the five repeating “themes” identified in the research to help alleviate real estate issues. According to the Ontario study, fully or semi-detached dwellings now account for almost 70% of land allocated for housing in Toronto. According to Sondhi’s TD research, supply is

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It might finally be time for Canadian homeowners to sell

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It might finally be time for Canadian homeowners to sell Early indications suggest that more house sellers are entering the Canadian housing market, which is good news for purchasers who have been dealing with supply constraints for some time. According to a recently released RBC Thought Leadership analysis by senior economist Robert Hogue, while one month does not always equal a trend, February’s market statistics indicate that more house sellers may be entering the market. Month-to-month gains in new listings have been reported by real estate boards around the nation, notably in Calgary and Edmonton, which had the highest number of transactions ever recorded in February. Purchasers continue to face a shortage of housing supply, which is driving up prices, particularly in locations like the Fraser Valley, Toronto, and Vancouver, where prices have risen steadily. “Sellers will play a central role in shaping up this year’s spring season,” said Hogue. “Should a critical mass of current homeowners see the coming months as an opportune window to list their property—now that interest rates are on the rise and ahead of potential policy actions targeting speculators—it would ease some of the supply restraints, both boosting near-term activity and reducing some of the pressure of prices,” he added. Hogue predicted that if the number of house sellers does not rise, present price trends will “likely remain” until major interest rate hikes reduce demand. Prices are rising in Toronto while the market in Vancouver becomes more balanced. Last month, home prices in the Toronto area skyrocketed, while the market in Vancouver remained flat. The aggregate MLS Home Price Index (HPI) for Toronto increased by 6.4 percent in February compared to January,  more than $80,000 in a single month. Following a $52,000 gain in January, the index has risen 35.9% since February 2021. The benchmark price in Toronto is $1.34 million, which is the highest in the country. “Despite crushingly poor affordability, demand remains exceptionally brisk at this stage,” said Hogue. “Buyers pounced on a larger offering of homes for sale in February, causing resales to climb 5.9 percent from January (on a seasonally-adjusted basis).” This is the second-busiest February on record, but increasing rates are expected to decrease demand over time – high prices and a significant presence of investors “make the market especially sensitive to rising interest rates.” As more listings became available on the west coast, market activity decreased. According to RBC, resales in the Vancouver region were down 6% from January, while new listings were up 12%. These trends might be a “welcome first step” toward more balanced market conditions in the Vancouver area, according to Hogue, however he added that high demand and short inventory would “keep the heat” on property values. Last month, the composite MLS HPI in Vancouver increased by 4.6 percent to $1.31 million, an increase of almost $58,000. Values have climbed by $226,000, or 20.8 percent, in under a year. “Buyers clearly face an extremely challenging situation. Higher interest rates will make things even more difficult for many, further crushing affordability in the period ahead,” said Hogue. “We expect this will gradually suppress demand later this year and contribute to the market rebalancing.” Calgary has had a record-breaking February, with a rise in sales and listings. Calgary had a strong showing in February’s market. With 3,300 transactions, resales increased by 19% month over month, making February the best month in Calgary history. This comes after a string of nine to fifteen percent month-to-month sales improvements. Sales were up 69 percent from January owing to an influx of new listings.“It provided many buyers the options they had been seeking for some time amid shrinking inventories. These new buying opportunities came at a steeper price though,” said Hogue, who observed that Calgary’s composite MLS HPI grew 5.9 per cent — about $27,000 — between January and February. Related posts. It might finally be time for Canadian homeowners to sell by admin123 Plans at the New Bloor-Lansdowne GO Altered for Height and Park Size. by admin123 By the end of Q1-2022, GTA may witness launch of 9,750 additional condo units by admin123 Home Prices in Toronto hits an all time new record by admin123 Did Canadian housing market turn the tide? by admin123 Home Prices in Toronto hits an all time new record by admin123

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