Real Estate News

217 St. George St., No. 13
(GEORGE AND DUPONT, TORONTO)

ASKING PRICE: $929,000 Selling price: $1.08-million

TAXES: $2,770 (2017)

DAYS ON MARKET: N/A

LISTING AGENT: Sandra Pate, Royal LePa ge Real Estate Services Ltd., Johnston and Daniel Division

 THE ACTION: News that this two bedroom suite in the Annex was coming to market reached an outof-country buyer, who submitted a $1.08-million bid just days before its planned debut at the end of March.

“It wasn’t ever marketed; I was approached by an agent from another company – while we were preparing it for the Multiple Listing Services – who heard that it was coming to market,” agent Sandra Pate said.

“There hadn’t been one available in the complex for quite a while, so pricing was challenging. But, there was a unit across the street that was bigger – but not as nice – and it sold for $1-million.”

WHAT THEY GOT: This two-storey suite with a street-level entrance and 1,245 square feet of living space is in the original section of a former single-family home that has been incorporated into a large condominium with more than 50 units.

On the second floor is a family room with hardwood floors, a balcony and the kitchen with breakfast-bar seating.

The third level has one of two bathrooms and both bedrooms, including one with a walk-in closet. Monthly fees of $507 excludes hydro and cable costs. Parking is included, as well as access to visitor spots.

THE AGENT’S TAKE: “It had the advantage of being in the older part of the building and was a central front suite with a balcony,” Ms. Pate said. “It has a good layout over two levels … it’s almost like a house.”

The property is also pedestrian-friendly. “The best of the city is within a few minutes walk, including all of the great shops and cafés in Yorkville, Bloor Street, the subway, the [Miles Nadal] Jewish Community Centre, U of T, Varsity Stadium, Koerner Hall, Hot Docs cinema, many of the major hospitals and a selection of fantastic museums,” Ms. Pate said.

Sydnia Yu, Special to The Globe and Mail

41 Wolverleigh Blvd., Toronto

Asking price: $859,000

Selling price: $1,021,000

Previous selling price: $490,000 (2007)

Taxes: $3,907 (2017)

Days on the market: 5

Listing agent: Sandra Pate, Royal LePage Real Estate Services Ltd., Johnston and Daniel Division

The Action: East York homeowners were slow to give up their properties late last year, so roughly 100 buyers moved quickly through on this turn-of-the-century residence when it was listed in November. Within days, 13 parties pledged to make it their own and one accomplished that feat with a $1.021-million bid.

“There was a house that had come up a week before [nearby], so I’m glad we weren’t directly competing with it because it’s was more renovated,” agent Sandra Pate said.

“We didn’t have any really good comparable sales higher than about $900,000 to $950,000, so we didn’t expect that kind of price [we got].”

What They Got: Close to Greenwood station, this three-bedroom and two-bathroom house retains a classic appearance with hardwood floors everywhere from the main living and dining areas to a lower level family room with a gas fireplace.

The eat-in kitchen has access to a south-facing deck and an office in the basement provides a secondary exit to the 20-by-122-foot lot.

The Agent’s Take: “It’s quite wide, so it’s a fairly spacious house for the area,” Ms. Pate said.

“And it has legal front yard parking. So many semis in East York have driveways that are too narrow and don’t have a proper parking spot.”

Buyers also appreciated the proximity of amenities on foot. “It’s literally a block and a half to the subway station and two blocks to the Danforth, which is pretty great,” Ms. Pate said.

Sydnia Yu
Special to The Globe and Mail
Published January 25, 2018

BROADVIEW AVE., NO. 1107, TORONTO
ASKING PRICE: $639,000
SELLING PRICE: $640,000
PREVIOUS SELLING PRICE: $530,000 (2014); $425,000 (2010); $275,000 (2007)
TAXES: $2,868 (2017)
DAYS ON THE MARKET: Seven
LISTING AGENT: Sandra Pate, Royal LePage Real Estate Services Ltd., Johnston and Daniel Division

The Action: Owners rarely vacate two-bedroom suites at Helliwell Place, a building perched on the edge of the Don Valley ravine. So this one was quickly seized on by a buyer who bested one other bidder with a $640,000 offer in October.

“Maybe less than five a year of the two-bedroom units [come available],” agent Sandra Pate said.

What They Got: Built in the early 1970s, this high-rise was largely designed with two- and three-bedroom suites. This south west-facing unit was recently remodelled with new sliding terrace doors and an open kitchen area off the living and dining area.

Two bathrooms, laundry machines, a locker and parking round out the unit’s assets. Each month, $919 covers utilities, cable, concierge and recreational amenities.

The Agent’s Take: “It’s a pretty popular building because it’s older and [units] are more spacious because of that,” Ms. Pate said.

“[Plus] it has a southwest view, which is the coveted view of the valley and city skyline.”

While units generally offer the same floorplan, this one was altered. “It also has a nicely renovated kitchen that was opened up … and all the interior walls in this building are concrete, so opening up walls there is tricky, hence highly coveted,” Ms. Pate said.

The wobbly Toronto real estate market may have more trouble finding its footing now that buyers who take out an uninsured mortgage face a more stringent “stress test,” industry watchers warn. Real estate agents, economists and mortgage brokers predict more potential purchasers will put off buying a property or drop out of the market all together after the new lending rules take effect on Jan. 1.
Before that date, agents predict a small flurry of buying as people rush to ink a deal before the new requirements come into effect.

The Office of the Superintendent of Financial Institutions, which regulates the banking industry, unveiled a final version of the new guidelines this week. The federal government agency has been working on proposed Canada-wide changes for several months now while consumers continue to binge on debt. “The final decision to forge ahead with proposals to tighten mortgage rules further will only make matters worse for the already faltering housing market,” says David Madani, senior Canada economist at Capital Economics.

The OSFI’s new rules will require buyers who are applying for a mortgage with a down payment of more than 20 per cent of a property’s purchase price to qualify at the greater of the five-year benchmark rate posted by the Bank of Canada or an interest rate two percentage points higher than the buyer’s negotiated rate, whichever is higher. So if a buyer has negotiated a rate of 3 per cent, for example, they must have the financial health to meet their payments if the rate rises to 5 per cent. Lenders already apply a “stress test” to borrowers who have a down payment of less than 20 per cent because they are required to have mortgage insurance from Canada Mortgage and Housing Corp. Mr. Madani points out that, while insured mortgage lending has slowed over the past 12 months, uninsured mortgage lending has increased dramatically. OSFI superintendent Jeremy Rudin says his mandate is to ensure that federally regulated banks have sound lending practices. Ira Jelinek, an agent with Harvey Kalles Real Estate Ltd., anticipates the guidelines will have wider reverberations than intended.

In his opinion, the rule changes will have a larger impact than the two recent interest rate hikes by the Bank of Canada and the foreign buyers’ tax implemented by Ontario’s provincial government. He says professionals and small business owners often have problems obtaining a loan because they pay themselves a relatively low salary while retaining assets in the business. In the past they’ve been able to use a chunk of cash to make a larger down payment and avoid the stress test but, under the new policy, they will need to undergo the more rigorous test. Mr. Jelinek acknowledges that the rules may prevent unsteady consumers from buying more house than they can afford and he is in favour of tighter regulations but he believes the OSFI’s threshold may be too high. He adds that small business owners – a category that includes real estate agents – may have to buy less expensive properties or not buy at all.

“It’s going to eliminate a lot of buyers,” says Mr. Jelinek. “It’s a good stress test to have, but they’re not taking into consideration people who run their own businesses.”

Another cohort that could be affected is the group of young buyers who receive a down payment from the bank of mom and dad. In many cases, parents will help young adults buy a place if the kids can manage the monthly carrying costs. While a 20 per cent down payment would have let them obtain a mortgage, they may have more difficulty qualifying in the future. “It’s so hard for some people to qualify already,” Mr. Jelinek says.

He believes that renovations may become more popular as homeowners use their home equity to improve an existing property rather than attempting to move up to a more expensive home. As sales slow, people who need to move may see their property languish on the market. “It’s going to put a lot of families in jeopardy who need to move up or move down but can’t sell their house any more.” So far this fall, the return of a more balanced market in the Toronto area is helping prices to stabilize, says Bank of Nova Scotia economist Adrienne Warren. Two consecutive months of rising sales in August and September confirm that buyers are surfacing again after the Government of Ontario implemented policy changes in April, Ms. Warren says. Sellers in the Toronto area also seem more confident, she points out, with listings rebounding sharply last month, according to numbers from the Canadian Real Estate Association. The sales-to-new-listings ratio fell to 45.8 in September, leaving the market on the edge of buyer’s territory, she says. Benchmark prices edged up only slightly in September from August, she says, with the more affordable semi-detached houses, townhouses and condo units seeing the bulk of the action. Scanning the country as a whole, the housing market seems healthy at the start of the fall buying season, Ms. Warren says. Borrowing costs are still low and job growth is robust. At the same time, there’s good balance between the economies of various regions and people are forming new households. Still, there could be some speed bumps ahead, including the revised OSFI rules. Ms. Warren also expects to see higher interest rates, which in turn could lead to a pullback in sales – especially in high-priced cities.
— FRED LUM/THE GLOBE AND MAIL