End of February in Toronto neighbourhoods

It is the last day of February, and, stock market crash and RRSP season aside, it is interesting to see how are homes selling in various Toronto neighbourhoods. I compared sales in January and February.

Starting from the west end:

• The Kingsway had 5 sales in January, with average price $1,196,800 (98.2% of asking), and 8 sales in February, averaging $929,500 (101.6% of asking).
• Bloor West Village: 17 sales in January, $528,607 average (106.8% asking), and 12 sales in February, $590,375 average (101% asking).
• High Park: 12 sales in January at $592,342 average (105.3 of asking), 17 sales in February at $594,441 average (98.4% asking).
• Roncesvalles Village: 5 sales in January at $511,400 (103.6% asking), 6 sales in February at $475,542 average (102.3% asking).
• Riverdale had 16 sales in January at $521,269 average (102.1% asking), 21 sales in February at $579,841 average (106.7 asking).
• Prime Beaches had 11 sales in January at $624,064 average (102.2 asking), and 18 sales in February at $601,983 average (103.9% asking).
• In Scarborough, Guildwood Village had 3 sales in January at $367,850 (98.7 asking), and 7 sales in February at $422,286 (96.7 asking).
• Looking north, North Toronto had 4 sales in January, averaging $765,625 (97.2% asking), and 6 sales in February at $881,667 average (107.7% asking).

It is still a common practice in busy Toronto neighbourhoods to list properties low (often substantially below market value) to generate bidding wars and quick, firm sale.

Office space rental market

After seven years of distinct advantages for office tenants, commercial vacancy rates have come down, and the landlords gained an upper hand when it comes to re-negotiating the lease.

It is expected that the landlords will significantly raise their renewal rates, attempting to recover, if only in part, their perceived losses during the 'tenants' market' during most of the last decade. It will be most difficult for those who will be renewing their leases. Landlords know that it is a hassle to locate new premises for business, negotiate a new lease, and move.

When facing upcoming lease renewal, commercial tenants should do some research and come prepared. Analyze their needs, check, if possible, on the situation in the landlord's portfolio, and hire a professional to do negotiations. Using the research and the professional advise tenants may be able to figure out what is the lowest renewal rate below which the landlord would be willing to lose the tenant.

Such research should be done well in advance of the coming renewal, well before they have to give the landlord their notice. Depending on the size of required space, it might be advisable to start such research and planning even three years in advance.

The cycle in office space vacancies has been approximately 10 years, experts say, and the rents can vary substantially. It would be wise to negotiate a lease that would expire during a high vacancy period.

Roncesvalles Village real estate sales

Five homes are presently available for sale in Roncesvalles Village, ranging in price from $364,000 to$649,900. The lowest priced is a semi-detached home which has already been available for a total of 685 days over the last couple of years. It needs renovations and has poor street appeal. All of these properties are divided into units, ranging from 2 to 6.

Roncesvalles Village is very popular, and property prices reflect that. Last year average prices and percent of asking price are shown below.

This January average price for freehold homes in Roncesvalles Village was $511,400, with a sale-to-list price ratio of 103.6%. Hopefully with the arrival of spring we will see more homes becoming available in this attractive neighbourhood.

What is happening in real estate sales

Bloor West Village High Park Roncesvalles Village Swansea Kingsway Riverdale Rosedale home sales

Real estate activity is keeping pace with 2006 sales, Toronto Real Estate Board reports, with February's sales close to last year numbers, and the average property price up by 3% from the same time last year.

Looking at some neighbourhoods, the following is what I found. First, the number of new freehold listings:

• In Bloor West Village 23 residences were listed in January and 17 so far in February. In comparison, in the same periods last year, 17 homes were listed in January and 23 in February.
• In High Park 27 homes were listed in January and 14 in February 2007, while in 2006 24 were listed in January and 20 in February.
• In Roncesvalles Village 10 homes were listed in January and only 3 in February. In 2006 9 were listed in January and 6 in February.
• In Swansea 3 properties were listed in January and 17 in February of this year, while last year 10 were listed in January and 6 in February.
• In The Kingsway 12 houses were listed in January and 8 in February, compared to 7 listed in January 2006 and 11 in February 2006.
• In Riverdale 27 homes became available in January and 20 new listings were posted in February, while last year 20 properties were listed in January and 24 in February.
• In Rosedale 5 residences were listed in January and 14 in February, compared to 13 in January and 12 in February of last year.

Out of all these neighbourhoods only two reported more sales this year than in the same period last year. Bloor West Village reported 28 freehold sales this year, while in the same period of 2006 only 26 homes were sold. Riverdale had 29 sales so far in 2007, and only 24 between 1 January and 19 February 2006.

All the other above mentioned neighbourhoods had less sales reported this year, with the biggest difference in Swansea - 7 this year vs. 16 last. Roncesvalles shows 10 in 2007 and 11 in 2006, High Park - 25 this year vs. 26 last, The Kingsway had 8 sales compared to 12 last year, and Rosedale had 8, while in the same time frame last year 11 solds were reported there.

It is too early to properly interpret this information. I will be watching these statistics and reporting them either in this Blog or on one of my real estate websites.

Kitchen counters

kitchen renovation granite quartz Corian concrete Toronto

It is a well known fact that beautiful kitchen contributes a great deal to a successful sale. Practicing real estate in Toronto one cannot help noticing more and more high quality kitchen renovations. I seems that even in their rushed lives some Torontonians really enjoy cooking.

One of the very important parts of a kitchen renovation is the countertop. This surface gets daily abuse from spills and hot items placed on it, and it should be durable, easy to clean, and beautiful.

Most of the time, the counter of choice is granite. Granite is an excellent material - it is hard, will not scratch, can - to a point - withstand heat, and it comes in a wide variety of colours to complement the cabinetry and flooring. It is important to know that there are different levels of quality of granite, and it does not only depend on its thickness. Of course thickness is important, because the thinner the slab, the weaker it is. Since granite is one of the most expensive countertop options, if you decide to go this route do get a good quality.

Granite, like marble and slate, is sealed when manufactured, and should be periodically re-sealed to maintain its beauty. Although granite is much harder than marble, but - even properly sealed - will stain if, say, red wine or strong tea spilled on it will not be wiped up right away.

Quartz countertops don't need to be sealed or re-polished. This natural stone is twice as strong as granite. It is also resistant to staining from fruit juices, wine, coffee, tea, food colouring and even felt-tip markers.

Corian Solid Surface countertops are man-made in a wide variety of colours and come in matte/satin, semi-gloss and high gloss finishes. The material is identical right through, therefore scratches can be polished off the surface. Darker colours tend to require more attention to maintain a uniform finish.

Fairly new is a surfacing material made by DuPont using natural quartz. It is durable, scratch-resistant and non-porous, and does not require sealants or waxes. It is produced in a variety of colours, and comes with a 10-year limited warranty.

Another man-made material is Ceasarstone. It has all the properties of natural stone, but is fifteen times harder, and five times stronger than granite.

Another recently popular choice is concrete. Concrete countertops are unique, because they are designed and made for each homeowner, can give warmth and colour not available in natural stone or Corian, and can be finished to a smooth, glass-like surface which acquires a patina over the years. Like concrete flooring in ever-popular lofts, they are a good choice for a modern kitchen.

Stainless steel countertops, most often used in restaurants, and probably the most hygienic and easy to care for. They give the kitchen this 'chef lives here' look, and go very well with stainless steel appliances. They are comparatively expensive, in line with good granite.

The most popular, due to their low cost, are laminate countertops. They are easily scratched or burned, but being inexpensive can be changed every few years.

Interesting market

home sales Riverdale High Park Swansea Roncesvalles Village

Home sales have been very strong in January - it was the second best January in the history of Toronto Real Estate Board. Winter finally arrived in Toronto in February, and it is interesting to see how are home sales in different Toronto neighbourhoods.

Prime Riverdale is very busy, with 11 sales reported since the beginning of the month. The average listing-to-sale price ratio was 105.1%, with only three sales below asking, at an average of 95.3%.

In contrast, High Park had 9 sales reported, but the listing-to-sale price ratio was 98.8%, with only one property selling above asking at 106%.

Swansea had only four sales so far this month, two of them above asking at 101% and 119%, and two below, at 98% each. The average was 104%.

Roncesvalles Village reported 5 sales with an average of 103%. This average is due to one only sale at 120% above asking, the other four sold below asking.

Bloor West Village had 8 sales, with an average of 99.1% of asking. Only two homes sold above asking, at an average of 105%.

Lytton Park reported 6 sales at 109% of asking on average, with only two properties selling below asking (at 93.5%).

Bayview Village had only three sales so far this month, all of them below asking at an average of 97.7%.