The LCBO warehouse along Queen’s Quay in Toronto is in a prime downtown location. It was built in 1954 and Duncan says selling the property and redeveloping the head office, warehouse and retail store will raise $200 million for the province. A retail store will remain part of any redevelopment says Duncan. The head office will move to a different location.

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“A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership,” said Toronto Real Estate Board President Richard Silver. “The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum,” continued Silver.

The average selling price for January 2012 transactions was $463,534 – up by almost nine per cent compared to January 2011.

“Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year. Strong price growth is expected to attract more listings. A better supplied market should result in a slower rate of price growth, especially in the second half of 2012,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

Mortgage rates at historic lows: They can’t get any lower. Four to five-year fixed mortgages at 3 per cent are unheard of. It is lower than the variable rate that most Canadians have been paying for years. Rates have nowhere to go but up, either later this year or next. If you are paying a variable interest rate, lock in now.

Canada’s appeal: This country has everything going for it — a stable banking and political environment, steady real estate market, the natural resources people want and few social tensions. That makes us a safe haven in a volatile world.

Our immigrant draw: Because of the above, we’re a draw for immigrants, often wealthy ones. When they get here, they need a home. So in my view while the real estate market may level off in some areas of Ontario, it should stay strong in most of the GTA and likely Canada’s other large urban centres as well.

Mortgage defaults: According to CMHC, over 99 per cent of Canadians pay their mortgages on time. It quite a different picture in the U.S. where 7 million homes are in foreclosure and perhaps another 7 million homeowners are under water. This represents almost 15 per cent of all homes. So while the American housing market will likely be weak for the next few years, this should not occur in Canada. Our banks are not dumping homes onto the market, so there is no downward pressure on prices.

Income-to-price ratio: Another misleading statistic is that in major markets, like Toronto, the average price of a home is now 4.6 times the income of the average Canadian. This same statistic was found just before the U.S. and UK markets went into the tank. However, if you look at median incomes of Canadians against the median cost of homes, this average comes down to around 3.5, which is not dangerous. Using averages are wrong. A person receiving social assistance will not buy a home, and should not be included in any relevant statistic.

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While the sale of highrise condos hit record levels in 2011, the supply of new, single-family homes declined to near-record lows. And condos continued their downward slide in size, with new units weighing in at 52 square feet smaller than a year ago.

The average new condo being built in the GTA is now just 820 square feet — about 100 square feet less than units built two years ago, according to a wide-ranging assessment of the new housing market released Friday by research firm RealNet Canada and the Building Industry and Land Development Assoc. (BILD).

Those, and other hard facts about one of the hottest housing markets in the world, has builders calling on government, yet again, to review land-use restrictions, red tape and development fees they say are holding back the creation of new single-family homes and adding years of delays, and millions in costs, to the construction of condo projects.

All those construction cranes and condo sales offices may create the illusion that there is an oversupply of housing across the GTA, but 100,000 new people are moving into the region each year and building just isn’t keeping up with demand, according to RealNet’s research: The inventory — amount available to buy — of both lowrise homes and highrise condos now sit at their lowest levels ever.

“The shift really hit the fan in the GTA in 2011,” said RealNet President George Carras, stressing how dramatically, and quickly, the GTA is changing from a region of sprawling suburbs to a highrise metropolis, but one that risks leaving families few places to live.

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“The market didn’t miss a beat after the holiday season, with robust sales growth continuing and sellers’ market conditions remaining in place. Strong competition between buyers continued to push the average selling price higher in the Greater Toronto Area relative to a year ago,” said Toronto Real Estate Board (TREB) President Richard Silver.

The average selling price during the first two weeks of 2012 was $444,473 – up by more than 8.5 per cent compared to the same period in 2011.

“Prices were up for most major home categories in the GTA in comparison to last year. The strongest price growth was for single-detached homes in the City of Toronto. The average price of singles in the 416 area code was up by 22 per cent year-over-year, pointing to a greater weighting of higher end detached homes changing hands compared to the same time last year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

The Bank of Montreal cut the rate on its closed five-year fixed mortgage to 2.99%, a half a percentage point drop that is expected to set up a wave of competition among the banks as they fight for market share in a shrinking real estate market.

“That’s the lowest anybody has ever seen from one of the major lenders ever,” said Rob McLister, editor of Canadian Mortgage Trends, adding mortgage specialists at Royal Bank have told him their financial institution has vowed to match any cuts.

The BMO offer does come with some catches, namely customers can only pay 10% of the mortgage principal in a lump sum payment per year as compared with the usual 20%. Monthly payments can only be increased by 10% instead of the usual 20%.

More importantly the offer, which is available until Jan. 25, stipulates that consumers must accept an amortization of just 25 years instead of 30 — something a number of banks have been pushing the government to regulate again. Ottawa has already lowered amortization from 40 years to 35 and then 30 over the last three years.

“We are trying to invite customers to make better financial decisions by offering this great rate. We think it’s a terrific product for the current environment,” said Katie Archdekin, head of mortgage products at BMO. “It’s not a move driven by competition, we believe a 25-year amortization is a better choice for more Canadians at this time.”

A shorter amortization has the effect of lowering the amount of debt Canadians can take on by increasing their monthly payments. At the same time, it does get them to pay off their debt quicker.

Craig Alexander, chief economist with Toronto-Dominnion Bank, does worry Canadians might be getting mixed messages about interest rates. “We’ll tell people to be careful of their debts and don’t take on more because interest rates are going to go up,” he says. “I feel like the little boy that cried wolf. Every year I keep telling people but I have to keep reminding people that the wolf does show up at the end of the story.”

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“Low borrowing costs kept Buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said TREB President Richard Silver. “If Buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area,” added Silver.

The average selling price in December was $451,436 – up four per cent compared to December 2010. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average of $431,276 in 2010.

“Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between Buyers and strong upward pressure on selling prices,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer.

“We have seen strong annual sales growth through the 2011 fall market. The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area,” said Toronto Real Estate Board (TREB) President Richard Silver. “The market has also become better supplied, with annual new listings growth outstripping that of sales. As this trend continues into 2012, we will see more balanced market conditions.”

The average price for November transactions was $480,421, representing an increase of almost 10 per cent in comparison to $437,494 in November 2010.

“Despite strong price growth this year, the housing market remains affordable in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The correct method of assessing affordability is to consider the share of the average household’s income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace.”

Panorama is a great looking building on Dan Leckie Way.
It’s at the intersection of Lake Shore Blvd and Bathurst.

It’s got a very modern style all around. The units have nice kitchens and can have spectacular views.

Condo amenities include a gym, internet cafe, hot tub, bbq area and 24 hour security.

Energy inefficiency is probably the number-one issue with older homes. Most older homes were constructed with single-pane windows; if these windows are still there, they likely don’t fit very well. Replacement windows can be very expensive, but will contribute immensely to reduced energy use and heating and cooling costs. Most replacement windows are available in several styles, so finding one that suits the look of your older home is easier than ever.

Like single-pane windows, poor (or no) insulation will also wasted energy and money. The most important and easiest area of the home to insulate is the attic, but walls and floors above ventilated crawlspaces should be insulated as well if possible. The attic may already have insulation but it may be inadequate by current standards. The most common insulation materials used in attics today are rock wool, fiberglass and cellulous.

If your home has older water pipes, have them checked to identify the material and determine if they need to be replaced. Some older materials such as galvanized steel, iron, and even lead are subject to are still in use today even though new construction does not allow them. Replacement options include copper, pex and CPVC piping for the supply, and ABS and PVC for the waste.

Outdated electrical systems can still sometimes be found in older homes and may not only be unsafe, they can make the house uninsurable. Knob and tube wiring was typical before the 1950s, and 60 amp electrical service was common prior to the 1960s. Even if no danger is present, we use so much more electricity in our homes now that the capacity of your older system may be inadequate. Only a qualified electrician should attempt any repairs or updates to your home’s electrical system.

The necessary upgrades to rectify all these issues can be very costly. It is therefore very important to get a good home inspection done before you buy. However, a well educated agent should also be able to identify most issues during the first viewing of the home. This might make you decide not to move forward with it, saving you the cost of a home inspection.