Durham Region Real Estate Blog

By all accounts, the Canadian economy is humming along at a healthy pace, adding pressure on the Bank of Canada to raise interest rates. The Bank must weigh our healthy, domestic economy against a bleak global backdrop, including signs of a stagnate economy in the U.S.

The central bank’s second quarter business outlook survey shows high hiring intentions by businesses and there is an upbeat outlook on sales, investments and financing. Housing starts in June, 2011 surged well past espectations.

All this would normally point toward a rate hike by the Bank of Canada but the global situation has worsend – weak U.S. employments, rising Chinese inflation and new euro zone woes – so the Bank of Canada may rethink how sustainable our good news is.

So where will interest rates go? No one knows for sure and any answer given today could change tomorrow. That’s how volitile the market is. The safest thing you can do is this: get qualified for your mortgage at 6%. Then sign up for the lowest rate that suits you (whether it is a fixed or variable rate mortgage) and make your payments as if the interest was at 6%. You’ll pay down your mortgage much faster and if rates go up, you’ll be o.k. Since you’ll be used to making payments at the increased rate, you’ll suffer no ill effects from the changes.

Need more information? Call me today!

Coldwell Banker has a great little tool called the Coldwell Banker Home Listing Report. Want to know how much your home would cost if it was in another market? Well, maybe not exactly what it would cost, but it’ll give you a good idea of values in other markets and is fun to use.

For instance, if your home in Oshawa is valued at $300,000 it can be expected to cost approximately $1,352,381 in Kelowna, BC, $385,714 in Rocky Mountain House, AB and $290,476 in New Glasgow, NS. Click on this link to check out values in other areas around the country.

Because Coldwell Banker is an international company, they put out great international statistics sometimes. Comparing similar four bedroom, two bath homes in 30 countries and more than 60 markets outside of Canada and the U.S..

If you’ve got some money to spare, why not move to Neuilly-sur-Seine, France. Located just 4 miles from the center of Paris and home to the current President of the French Republic and the headquarters for the global edition of The New York Times newspaper, The International Herald Tribune. In the opposite hemisphere, the tourist city of Salinas, Ecuador, is one of the many markets offering great affordability. It is also known for its proximity to the Pacific Ocean and year-round temperatures averaging 80 degrees Fahrenheit.

What do you think about Rome? It is the capital and most populated city of Italy and has been ranked as one of the world’s 15 most important cities. Or choose Amsterdam, the cultural and financial capital of the Netherlands and home to seven Fortune 500 companies including ING Group and Royal Philips electronics.

So, how much are the compared homes costing? Here is a small sample of the data released. That 4 bedroom, 2 bath home in Aruba will cost you $445,875 but in Sydney, Australia, look to be set back $1,047,250.  Rome’s prices are $1,777,750 while Amsterdam is a comparable bargain at $862,320.  Save big in Ecuador where for $75,000 you can have that 4 bedroom, 2 bath home. And if you are really good at saving your pennies, buy in Neuilly-sur-Seine for $4,204,000.

So where is your dream home located? Tell me and I’ll let you know what you can expect to pay for it.

Advice is to be saved for my clients. Those individuals who agree that the level of service I provide is the level of service they are looking for in their REALTOR®. However, I feel so strongly about this point that I have to give you all my priceless opinion on this topic. If you had any doubts about the risks to sellers and real estate agents for using the Seller Property Information Statement (SPIS), a decision of the Ontario Court of Appeal in  May, 2011 would seem to have put them to rest once and for all.

The case is Krawchuk v. Scherbak where the Ontario Court of Appeal reversed the trial decision and held the real estate agent, her employer and the sellers all liable for negligent misstatement in filling out the SPIS. Now this blog is not a note to other real estate agents to be careful with the use of the SPIS. They can use it or don’t use it, I don’t care. As big boys and girls and can make their own decisions. I’m writing this blog for all the sellers out there who are getting duped into filling out the forms.

In 2004 the Scherbaks listed their property in Sudbury with a REALTOR®. The REALTOR® helped them complete an SPIS. On the form, the question, “Are you aware of any structural problems?” was answered: “NW corner settled … to the best of our knowledge the house has settled. No further problems in 17 years.” Well, that’s where the problems started.

The listing agent also acted for the buyer (with the consent of all the parties), an agreement was reached and the house sold. After closing, the buyer discovered that the foundation walls were sinking into the ground below, resulting in the failure of proper support for the floor joists and building above. To correct the problem the buyer spent $197,000 – almost double the purchase price! $105,000 was recovered from the title insurance company and then, Krawchuk (the buyer) sued the sellers, the agent and the real estate brokerage.

The SPIS was intended to protect sellers by disclosing correct information about the property to buyers. It doesn’t always work. The trial judge found the Scherbaks liable for negligent misrepresentation and awarded Krawchuk damages of $110,000 in addition to the $105,000 she had recovered from her title insurer. He dismissed her claims against the real estate agent and broker. The Scherbaks appealed the judgment and Krawchuk cross-appealed the dismissal of her claim against the real estate agent.

A three judge panel of the court of appeal heard arguments last October and released its decision on May 6. The court awarded half of the $110,000 in damages against the sellers and half against the real estate agent. In addition, the buyer was awarded $25,000 in costs of the appeal against the sellers and a further $25,000 in costs against the real estate agent. Bad on all fronts.

Maybe you read this blog and think, “This could never happen to me. I would be totally truthful.” But how complete will your statements be? What if you interpret the form different than the courts do and therefore answer incorrectly? Do you want to be stuck in the middle of a lawsuit? Don’t fill out the form! Learn what you must disclose and protect yourself. Find great representation. And remember, if you are about to list your house and the REALTOR® of your choice pulls out the SPIS, run!

Today the Toronto Real Estate Board is changing the districts we use to search for houses in specific areas. Yesterday we could search in specific citys and towns, but in order to narrow a search you need to either use the map provided on line or use a printed may. And not just any printed map, but a specific one. Years ago it was a Pearly’s Map but more recently we had to have up to date versions of the Map Art maps. And not those little pocket ones that might be easy to carry around. Nope, we had to have the big one with the metal binding. We searched page 24, row 27, column R. Well, don’t quote me on those numbers, but you get the idea. So if I was away from my map and someone wanted a search for a specific area within the Durham Region, say the houses around Windfield Farms, I was a little stuck for my search.

But not anymore! Want to see what is for sale in Lynde Creek? How about Northwood or Stevenson? There are completely new districts for searching now that aim to move us to the 21st century. If you are interested in seeing a map of the new districts or would like me to send you some searches for homes in the areas you are considering moving into, please let me know. I’d be happy to help you find a great, new place to call home.

Now….I wonder how long it will take me to get used to the new districts!