4 1

416-931-4161James Metcalfe BROKER

www.OurHomeToronto.com | Service@OurHomeToronto.com

REAL ESTATE UPDATE

Royal LePage Real Estate Services Ltd.Johnston & Daniel Division, Brokerage

477 Mount Pleasant Rd., Toronto, ON M4S 2L9

SEPTEMBER 2012

The average price of a resale home in the GTA in August was $479,095 - a 6% increase versus the August 2011 average price of $450,323. Additionally, the MLS® Home Price Index (MLS® HPI), which provides an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 6.3% on a year-over-year basis. The vast majority of this price growth was driven by the low-rise home segments of the marketplace, as per the following: detached homes (+8%), semi-detached homes (+6%) and townhomes (+5%). Meanwhile, the condo apartment segment witnessed a slight 2% decline in price on a year-over-year basis. Overall price growth was assisted by a 5.5% decline in new listings coming onto the market, which resulted in robust competition among buyers especially in the low-rise segment.

From a volume perspective, the month of August produced a sizeable 12% decline in sales (6,418 transactions versus 7,330 in August 2011). The sales decline was most evident in the condo apartment segment (-22%) followed by semi-detached homes (-13%) and detached homes (-10%). Only the townhome segment managed to eke out a sales volume gain (+1%) versus year ago. The soft volume performance this summer was due to several factors, most notably stricter mortgage lending guidelines (which came into effect in July) and the uncharacteristic heavy front-end loading of sales in 2012. Having said this, sales volume remains up by a solid 5% on a year-to-date basis (January thru August) versus the comparable period in 2011 (65,899 transactions versus 62,766 last year).

GTA RESALE HOME SALES8 9 10 11 12

GTA Resale Home Sales

APRFEB JUN OCT DECAUG

3,000

1,500

4,500

6,000

7,500

9,000

10,500

12,0002011

2012

8 9 10 11 12

GTA Resale Home Sales

GTA AVERAGE RESALE PRICE

APRFEB JUN OCT DECAUG$400,000

$540,000

$420,000

$440,000

$460,000

$480,000

$500,000

$520,00020122011

According to RealNet’s Highrise Index Price, new condo prices in the GTA have declined by 6.4% during the past year. However the reason for the decline has nothing to do with the tightening of mortgage rules, or an oversupply of new housing or any reduction in development costs. The reason in a word is: shrinkage.

New condo prices are lower because the units being offered for sale are simply smaller. In 2009, this size index of a new condominium in the GTA was about 920 square feet. Just three short years later that same size index was about 795 square feet. The reduction of 125 square feet is the equivalent of removing a 10-by-12 feet room from that 2009 condo. What’s more is that this shrinkage has been consistent across all condominium unit types in both the 416 and 905 regions.

The Index size of a new one-bedroom-plus-den condominium in the 416 as of June 30 was 668 square feet, compared to 703 square feet in the 905. That’s only 35 square feet of additional space in the 905. The Index size of a new one-bedroom

condominium in the 416 was 560 square feet, compared to 594 square feet in the 905. That’s just 34 square feet more in the 905.

For the most part, the impact of this condo shrinkage will not become apparent for a few years. Most of this data refl ects condominium projects being sold in the pre-construction stage. On average, these units take between three to fi ve years to deliver, that is, to go from the start of presales to the delivery of move-in-ready units to the market.

The population growth of the GTA will increasingly be accommodated by condominium apartments, many of them one-bedroom or one-bedroom-plus-den units that average between 560 and 703 square feet. That appears to be a simple fact of life.

As usual, your client referrals are both highly valued and much appreciated. Until next time, take care!

“Recession is when a neighbour loses his job. Depression is when you lose yours.” – Ronald Reagan

“I am fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.” – Winston Churchill

“Age is an issue of mind over matter. If you don’t mind, it doesn’t matter.” – Mark Twain

“I refuse to join any club that would have me as a member.” – Grouch Marx

Condominium corporations have a duty to accommodate residents who have sensitivity to second-hand cigarette smoke, according to a recent decision of the British Columbia Human Rights Tribunal. Corporations who fail in their duty may well be subject to penalties. 

The case involved Melanie and Matthew McDaniel, who lived in a 39-unit condominium in Langley, B.C. Shortly after the McDaniels took possession in March 2008, they experienced second-hand smoke entering their unit as a result of other residents smoking tobacco and marijuana on the patios and decks below their unit.

For the next three years, the McDaniels were involved in lengthy ongoing communications with the board and property manager. Melanie suffers from severe allergic reactions to all types of smoke and perfumes. She was pregnant when she moved in and claims her health was being seriously affected by the smoke fumes.

Melanie kept a two-year log in which she documented some 175 incidents of smoke infiltration into her unit. Matthew also suffers from chronic health issues, including diabetes and hypoglycemia, making it important that he avoid exposure to second-hand smoke. 

The condominium corporation suggested that the McDaniels install an air conditioner, and that they attempt to get 25 per cent of the owners to petition for a no-smoking bylaw. It asked residents who smoke to be respectful of others, it wrote the owners below the McDaniel unit asking them not to smoke on their patios, and it considered imposing a total smoking ban. 

Nothing worked. Eventually, the McDaniels took the matter to the B.C. Human Rights Tribunal, alleging that the condo corporation failed to accommodate their complaints adequately or appropriately.

To its credit, the condominium corporation conceded during the hearing that it failed to accommodate the McDaniels, and did not oppose their claim for expenses for items such as the air conditioner. It suggested that the tribunal did not have the authority to impose a non-smoking bylaw on the corporation, and that the smoking issue was already covered by the condominium’s nuisance bylaw.  

In the end, the tribunal sided with the McDaniels. It acknowledged

that the McDaniels were physically and psychologically vulnerable and that they were treated by the condominium and the property managers with “what can best be termed a patronizing or benign neglect for a period of almost three years.”  

“I accept that the (corporation’s) conduct severely diminished the McDaniels’ enjoyment of the property and had a physical as well as significant emotional impact on them,” tribunal chair Bernd Walter wrote in his decision.

Walter ordered that the corporation refrain from committing a similar contravention in the future (even though the McDaniels had lost their unit to foreclosure and had moved out), but declined to order that they pass a non-smoking bylaw. The condominium was ordered to pay the McDaniels $1,118.88 for an air conditioner and to reimburse them for naturopathic consultations. The tribunal also ordered the condominium to pay Matthew $2,000, and Melanie $4,500, as compensation for injury to their dignity, feelings and self-respect. 

Bradley Chaplick is a Vaughan lawyer who commented on the McDaniel case in his law firm’s blog at finedeo.com/blog.

Since the B.C. Human Rights Code - like that of Ontario - prevails over other provincial legislation, Chaplick suggests that condominium corporations in similar circumstances obtain medical evidence from complainants to verify that they suffer from a disability-related need. He also recommends that discussions be held with owners to explore potential solutions, and that the corporation ensures that the smoke infiltration is not being caused by a common element deficiency. 

While much of the case law relating to smoking in residential units has arisen in the human rights context, Chaplick writes, the fact that there may be a human rights aspect does very little to change the condominium corporation’s obligations.

His opinion is that corporations should diligently ensure that common element deficiencies are corrected, and that reasonable steps are taken to enforce provisions in declarations, bylaws and rules prohibiting residents from creating a nuisance.

SMOKING ISSUES PLAGUE CONDO CORPORATIONS

3

When you talk to any home inspector, you will learn that for resale home buyers, it is all about fi nding potential water problems. No one wants to move into their dream home, only to discover leaks from the basement or roof, mould behind the walls, sewage backups from the street or toilets fl ooding inside the house. Water damage is expensive to fi x, both inside and outside your home.

That is why you need a good inspection fi rm. It can spot the signs that indicate whether you may have problems now or later, including when renovations may have been done to cover up old problems.

However, the home inspection industry is not licensed, so you will need to rely primarily on word of mouth. Besides your friends and relatives, ask your real estate agent and lawyer for referrals.

Alan Carson of Toronto inspection fi rm Carson Dunlop gives a checklist of items to look for:

1. A roof is not meant to last more than 15 years. Shingles falling off and water getting into your interior walls can get expensive to repair. Some inspectors do not even go onto the roof during the inspection, so ask them how they’re checking the roof.

2. Water in the basement is usually caused by improper grading. The ground may slope towards the house, water from the roof may not drain properly into the downspouts, and the downspouts may not point away from the home. All of these issues can cause runoff against the foundation wall over many years, which later cause leaks. Any outside cracks in the concrete can also lead to water penetration. On the inside of the house, look for signs of water marks on baseboards, rust, stains or mould.

3. Be wary if there has been a recent renovation in the basement. The seller may be trying to cover up existing problems without correcting them. In addition, take note if the seller has put up drywall and not upgraded the water pipes or the electrical wiring behind the drywall.

4. Watch out for old plumbing, such as galvanized steel for

the pipes bringing water into your home and cast iron pipes that take waste water. If the basement is unfi nished, it does not cost as much to replace these pipes. If the home is fi nished, then it will cost much more to get behind the walls. A plumber once told me that if the kitchen has two sinks, check the piping underneath to see that one pipe joins into the second pipe before going down into the fl oor. If the pipes join together in the middle and then go down, this is a sign of poor workmanship that usually results in clogged drains.

5. Sanitary sewer backups can destroy your basement. You can get a video made of your drainage systems to see whether there may be future problems. This $300 is well worth it.

6. Buyers should ask sellers point blank if they have had any water leakage, and ask the seller to provide a report from their home insurer confi rming that no claims have been made against the property for water damage or sewage backups. Also ask the neighbours, because old outside pipes have a way of affecting other homes on the street.

Ask the right questions when you have your home inspection done and avoid a lot of headaches later.

This article was contributed by Mark Weisleder, a Toronto-based real estate lawyer. Please visit him at www.markweisleder.com.

GOOD HOME INSPECTIONS FIND WATER PROBLEMS

2 This article was contributed by Bob Aaron, a Toronto-based real estate lawyer. Please visit him at www.aaron.ca.

Condominium corporations have a duty to accommodate residents who have sensitivity to second-hand cigarette smoke, according to a recent decision of the British Columbia Human Rights Tribunal. Corporations who fail in their duty may well be subject to penalties. 

The case involved Melanie and Matthew McDaniel, who lived in a 39-unit condominium in Langley, B.C. Shortly after the McDaniels took possession in March 2008, they experienced second-hand smoke entering their unit as a result of other residents smoking tobacco and marijuana on the patios and decks below their unit.

For the next three years, the McDaniels were involved in lengthy ongoing communications with the board and property manager. Melanie suffers from severe allergic reactions to all types of smoke and perfumes. She was pregnant when she moved in and claims her health was being seriously affected by the smoke fumes.

Melanie kept a two-year log in which she documented some 175 incidents of smoke infiltration into her unit. Matthew also suffers from chronic health issues, including diabetes and hypoglycemia, making it important that he avoid exposure to second-hand smoke. 

The condominium corporation suggested that the McDaniels install an air conditioner, and that they attempt to get 25 per cent of the owners to petition for a no-smoking bylaw. It asked residents who smoke to be respectful of others, it wrote the owners below the McDaniel unit asking them not to smoke on their patios, and it considered imposing a total smoking ban. 

Nothing worked. Eventually, the McDaniels took the matter to the B.C. Human Rights Tribunal, alleging that the condo corporation failed to accommodate their complaints adequately or appropriately.

To its credit, the condominium corporation conceded during the hearing that it failed to accommodate the McDaniels, and did not oppose their claim for expenses for items such as the air conditioner. It suggested that the tribunal did not have the authority to impose a non-smoking bylaw on the corporation, and that the smoking issue was already covered by the condominium’s nuisance bylaw.  

In the end, the tribunal sided with the McDaniels. It acknowledged

that the McDaniels were physically and psychologically vulnerable and that they were treated by the condominium and the property managers with “what can best be termed a patronizing or benign neglect for a period of almost three years.”  

“I accept that the (corporation’s) conduct severely diminished the McDaniels’ enjoyment of the property and had a physical as well as significant emotional impact on them,” tribunal chair Bernd Walter wrote in his decision.

Walter ordered that the corporation refrain from committing a similar contravention in the future (even though the McDaniels had lost their unit to foreclosure and had moved out), but declined to order that they pass a non-smoking bylaw. The condominium was ordered to pay the McDaniels $1,118.88 for an air conditioner and to reimburse them for naturopathic consultations. The tribunal also ordered the condominium to pay Matthew $2,000, and Melanie $4,500, as compensation for injury to their dignity, feelings and self-respect. 

Bradley Chaplick is a Vaughan lawyer who commented on the McDaniel case in his law firm’s blog at finedeo.com/blog.

Since the B.C. Human Rights Code - like that of Ontario - prevails over other provincial legislation, Chaplick suggests that condominium corporations in similar circumstances obtain medical evidence from complainants to verify that they suffer from a disability-related need. He also recommends that discussions be held with owners to explore potential solutions, and that the corporation ensures that the smoke infiltration is not being caused by a common element deficiency. 

While much of the case law relating to smoking in residential units has arisen in the human rights context, Chaplick writes, the fact that there may be a human rights aspect does very little to change the condominium corporation’s obligations.

His opinion is that corporations should diligently ensure that common element deficiencies are corrected, and that reasonable steps are taken to enforce provisions in declarations, bylaws and rules prohibiting residents from creating a nuisance.

SMOKING ISSUES PLAGUE CONDO CORPORATIONS

3

When you talk to any home inspector, you will learn that for resale home buyers, it is all about fi nding potential water problems. No one wants to move into their dream home, only to discover leaks from the basement or roof, mould behind the walls, sewage backups from the street or toilets fl ooding inside the house. Water damage is expensive to fi x, both inside and outside your home.

That is why you need a good inspection fi rm. It can spot the signs that indicate whether you may have problems now or later, including when renovations may have been done to cover up old problems.

However, the home inspection industry is not licensed, so you will need to rely primarily on word of mouth. Besides your friends and relatives, ask your real estate agent and lawyer for referrals.

Alan Carson of Toronto inspection fi rm Carson Dunlop gives a checklist of items to look for:

1. A roof is not meant to last more than 15 years. Shingles falling off and water getting into your interior walls can get expensive to repair. Some inspectors do not even go onto the roof during the inspection, so ask them how they’re checking the roof.

2. Water in the basement is usually caused by improper grading. The ground may slope towards the house, water from the roof may not drain properly into the downspouts, and the downspouts may not point away from the home. All of these issues can cause runoff against the foundation wall over many years, which later cause leaks. Any outside cracks in the concrete can also lead to water penetration. On the inside of the house, look for signs of water marks on baseboards, rust, stains or mould.

3. Be wary if there has been a recent renovation in the basement. The seller may be trying to cover up existing problems without correcting them. In addition, take note if the seller has put up drywall and not upgraded the water pipes or the electrical wiring behind the drywall.

4. Watch out for old plumbing, such as galvanized steel for

the pipes bringing water into your home and cast iron pipes that take waste water. If the basement is unfi nished, it does not cost as much to replace these pipes. If the home is fi nished, then it will cost much more to get behind the walls. A plumber once told me that if the kitchen has two sinks, check the piping underneath to see that one pipe joins into the second pipe before going down into the fl oor. If the pipes join together in the middle and then go down, this is a sign of poor workmanship that usually results in clogged drains.

5. Sanitary sewer backups can destroy your basement. You can get a video made of your drainage systems to see whether there may be future problems. This $300 is well worth it.

6. Buyers should ask sellers point blank if they have had any water leakage, and ask the seller to provide a report from their home insurer confi rming that no claims have been made against the property for water damage or sewage backups. Also ask the neighbours, because old outside pipes have a way of affecting other homes on the street.

Ask the right questions when you have your home inspection done and avoid a lot of headaches later.

This article was contributed by Mark Weisleder, a Toronto-based real estate lawyer. Please visit him at www.markweisleder.com.

GOOD HOME INSPECTIONS FIND WATER PROBLEMS

2 This article was contributed by Bob Aaron, a Toronto-based real estate lawyer. Please visit him at www.aaron.ca.

4 1

James Metcalfe BROKER

416-931-4161 www.OurHomeToronto.com | Service@OurHomeToronto.com

In accordance with PIPEDA, to be removed from this mailing list please e-mail or phone this request to the REALTOR® Not intended to solicit buyers or sellers currently under contract with a broker. The information and opinions contained in this newsletter are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for damages resulting from using the published information. This newsletter is provided with the understanding that it does not render legal, accounting or other professional advice. Statistics are courtesy of the Toronto Real Estate Board. Copyright © 2012 Mission Response Inc. 416.236.0543 All Rights Reserved. D191

“YOUR REFERRALS ARE SINCERELY APPRECIATED! THANK YOU!”

Royal LePage Real Estate Services Ltd.Johnston & Daniel Division, Brokerage

477 Mount Pleasant Rd., Toronto, ON M4S 2L9

SEPTEMBER 2012

The average price of a resale home in the GTA in August was $479,095 - a 6% increase versus the August 2011 average price of $450,323. Additionally, the MLS® Home Price Index (MLS® HPI), which provides an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 6.3% on a year-over-year basis. The vast majority of this price growth was driven by the low-rise home segments of the marketplace, as per the following: detached homes (+8%), semi-detached homes (+6%) and townhomes (+5%). Meanwhile, the condo apartment segment witnessed a slight 2% decline in price on a year-over-year basis. Overall price growth was assisted by a 5.5% decline in new listings coming onto the market, which resulted in robust competition among buyers especially in the low-rise segment.

From a volume perspective, the month of August produced a sizeable 12% decline in sales (6,418 transactions versus 7,330 in August 2011). The sales decline was most evident in the condo apartment segment (-22%) followed by semi-detached homes (-13%) and detached homes (-10%). Only the townhome segment managed to eke out a sales volume gain (+1%) versus year ago. The soft volume performance this summer was due to several factors, most notably stricter mortgage lending guidelines (which came into effect in July) and the uncharacteristic heavy front-end loading of sales in 2012. Having said this, sales volume remains up by a solid 5% on a year-to-date basis (January thru August) versus the comparable period in 2011 (65,899 transactions versus 62,766 last year).

GTA RESALE HOME SALES8 9 10 11 12

GTA Resale Home Sales

APRFEB JUN OCT DECAUG

3,000

1,500

4,500

6,000

7,500

9,000

10,500

12,0002011

2012

8 9 10 11 12

GTA Resale Home Sales

GTA AVERAGE RESALE PRICE

APRFEB JUN OCT DECAUG$400,000

$540,000

$420,000

$440,000

$460,000

$480,000

$500,000

$520,00020122011

According to RealNet’s Highrise Index Price, new condo prices in the GTA have declined by 6.4% during the past year. However the reason for the decline has nothing to do with the tightening of mortgage rules, or an oversupply of new housing or any reduction in development costs. The reason in a word is: shrinkage.

New condo prices are lower because the units being offered for sale are simply smaller. In 2009, this size index of a new condominium in the GTA was about 920 square feet. Just three short years later that same size index was about 795 square feet. The reduction of 125 square feet is the equivalent of removing a 10-by-12 feet room from that 2009 condo. What’s more is that this shrinkage has been consistent across all condominium unit types in both the 416 and 905 regions.

The Index size of a new one-bedroom-plus-den condominium in the 416 as of June 30 was 668 square feet, compared to 703 square feet in the 905. That’s only 35 square feet of additional space in the 905. The Index size of a new one-bedroom

condominium in the 416 was 560 square feet, compared to 594 square feet in the 905. That’s just 34 square feet more in the 905.

For the most part, the impact of this condo shrinkage will not become apparent for a few years. Most of this data refl ects condominium projects being sold in the pre-construction stage. On average, these units take between three to fi ve years to deliver, that is, to go from the start of presales to the delivery of move-in-ready units to the market.

The population growth of the GTA will increasingly be accommodated by condominium apartments, many of them one-bedroom or one-bedroom-plus-den units that average between 560 and 703 square feet. That appears to be a simple fact of life.

As usual, your client referrals are both highly valued and much appreciated. Until next time, take care!

“Recession is when a neighbour loses his job. Depression is when you lose yours.” – Ronald Reagan

“I am fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.” – Winston Churchill

“Age is an issue of mind over matter. If you don’t mind, it doesn’t matter.” – Mark Twain

“I refuse to join any club that would have me as a member.” – Grouch Marx