Greater Toronto REALTORS® reported 10,350 transactions through the TorontoMLS system in April 2012. This level of sales was 18 per cent higher than the 8,778 firm deals reported in April 2011. The strongest sales growth was reported in the single-detached market segment, with transactions of this home type up by 22 per cent compared to a year ago.

“Interest in single-detached homes has been very high, both in the City of Toronto and surrounding regions. Growth in single-detached listings has not kept up with demand, which means competition between buyers in this market segment increased. With this in mind, it was no surprise that the strongest annual price increase was also experienced in the single-detached segment,” said Toronto Real Estate Board President, Richard Silver.

The average price for April 2012 transactions was $517,556 – up 8.5 per cent compared to April 2011. While price growth was strongest for single-detached homes, the better-supplied condominium apartment segment experienced a more moderate annual rate of price growth, at four per cent.

“Monthly mortgage payments remain affordable for home buyers in the Greater Toronto Area. While interest rates are generally expected to increase over the next two years, the extent and timing of rate hikes has been thrown into question by slower than expected economic growth in the first quarter of this year. On net, borrowing costs are expected to remain a positive factor influencing home sales through 2012,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

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Here is a market update released by the Toronto Real Estate Board. Sales activity through Toronto MLS® reached 10,350 for the month of April, that’s up from the 8,778 transactions recorded last April. Average selling price in March was $517,556 which is an increase of 8.5 percent from the previous year. Strongest growth was in the single detached market.

Check out the video for more:

http://youtu.be/SsXmFs-gRak

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Benjamin Franklin was a man of action. Over his lifetime, his curiosity and passion fueled a diverse range of interests. He was a writer (often using a pseudonym), publisher, diplomat, inventor and one of the Founding Fathers of the United States.

His inventions included the lightning rod, bifocals and the Franklin stove. Franklin was responsible for establishing the first public library, organizing fire fighters in Philadelphia, was one of the early supporters of mutual insurance and crossed the Atlantic eight times. Self-development was a constant endeavor throughout his incredible life.

Benjamin Franklin was clearly a man who knew how to get things done.

14 Action Inducing Lessons

Less Talk, More Action

“Well done is better than well said.”

Talk is cheap. Talking about a project won’t get it completed. We all know people who constantly talk about the things they are going to do but rarely ever take that first step. Eventually people begin to question their credibility. Taking action and seeing the task through to completion is the only way to get the job done.

Don’t Procrastinate

“Never leave that till tomorrow which you can do today.”

This is probably one of the first quotes I remember hearing as a teenager. With an impressive list of achievements to his credit, Benjamin Franklin was not a man hung up on procrastination. He was a man with clear measurable goals who worked hard to turn his vision into reality. What are you putting off till tomorrow that could make a difference in your life today?

Be Prepared

“By failing to prepare, you are preparing to fail.”

Whilst many of us don’t like change, others thrive on it. Either way change is inevitable. The stronger we fight against it, the more time and energy it consumes. Give up the fight. Focus on proactively making positive changes, instead of having change merely thrust upon you. Wherever possible, try to view change as a positive instead of a negative.

Don’t Fight Change

“When you’re finished changing, you’re finished.”

Whilst many of us don’t like change, others thrive on it.  Either way change is inevitable.  The stronger we fight against it, the more time and energy it consumes.  Give up the fight.  Focus on proactively making positive changes, instead of having change merely thrust upon you.  Wherever possible, try to view change as a positive instead of a negative.

Get Moving

“All mankind is divided into three classes: those that are immovable, those that are movable, and those that move.”

There’s a reason we use the expression, movers and shakers. Movers are the ones who take action, the people who get things done, while the immovable are sitting around scratching their heads wondering how others could possibly be so successful. Which group do you want to belong to?

Avoid Busywork

“Never confuse motion with action.”

We are always running around doing things. We rush from one meeting or event to the next, sometimes without achieving a great deal. At the end of the day, how much of our busywork are we proud of? How much of that running around improves anyone’s life (including ours) for the better? Make your motion mean something.

Give Yourself Permission to Make Mistakes

“Do not fear mistakes. You will know failure. Continue to reach out.”

If we fear making mistakes, we become scared to try new things. Fear leaves us nestled in our comfort zone. Staying in your comfort zone rarely leads to greatness. Taking risks and giving yourself permission to make mistakes, will ultimately lead you to whatever your version of success may be.

Act Quickly on Opportunities

“To succeed, jump as quickly at opportunities as you do at conclusions.”

Opportunities are everywhere. The trick is being quick enough and smart enough to seize them when they arise. Instead of jumping to the conclusion that something won’t work or can’t be done, allow yourself the freedom to ask what if?

Continue to Grow

“Be at war with your vices, at peace with your neighbors, and let every new year find you a better man.”

We all have vices of some description. The key is to keep them under control or preferably eradicate them entirely. Be kind to those around you, whether they are neighbors, family, co-workers or friends. Never accept that you have finished growing as a person.

Keep Going

“Diligence is the mother of good luck.”

Have you ever looked at a successful entrepreneur or business person and thought how lucky they are? Most of the time, luck has nothing to do with it. Hard work and sacrifice on the other hand have everything to do with it. Successful people deal with failure. They tackle their demons head on. They pick themselves up and keep going.

Know Yourself   

“There are three things extremely hard: steel, a diamond, and to know one’s self.”

Understanding ourselves is not easy.  Sometimes we just don’t want to see ourselves for who we really are.  It’s much easier to hold onto a romanticized version of ourselves or to simply view ourselves through other people’s eyes.  Start by being brutally honest with yourself.  Follow through with understanding, compassion and acceptance.

Don’t Self-Sabotage    

“Who had deceived thee so often as thyself?”

We spend so much time worrying about other people hurting us, yet fail to comprehend the damage we inflict on ourselves.  If you are using negative self-talk, lying to yourself or indulging in addictive behavior you are self-sabotaging.  Life can dish up enough challenges without us adding to the mix.  Be kind to yourself. Treat yourself like you would a best friend.

Don’t Give Up   

“Energy and persistence conquer all things.”

Achieving our goals can be downright exhausting.  There will be days when you want to give up.  There will be times when your energy levels flatline and you wonder why you bother getting out of bed.  Yet you push forward, day after day because you believe in yourself and you have the determination and strength to back up that belief.

Wise Up    

“Life’s tragedy is that we get old too soon and wise too late.”

Benjamin was definitely onto something with this one.  Who hasn’t had the thought – I wish I could know then, what I know now?  Unfortunately there is no time machine; there is no going back.  The key is to wise up as early as you can to start forging a life of purpose, achievement and happiness.

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Here’s a little something to ponder before a bidding war: Will the bank agree with how much you just paid for that home?

Appraisals are coming in below purchases price on some deals, with the potential to scuttle a transaction, lose a deposit or, at the very least, force buyers to look for other sources to cover the shortfall.

“This is happening all the time,” says Vince Gaetano, a principal at Monster Mortgage. “People are having to come up with more [cash] and, if they can’t, they better come up with an alternative means of financing.”

Mr. Gaetano wonders whether some appraisers have become more conservative and are almost anticipating a rapid drop in prices.

“Lenders are very nervous,” the mortgage broker says.

Problems arise when a consumer bids above the precedent for the area. A home may be purchased for say $450,000 but the appraiser could say you jumped the gun on values in the area and your new house is only worth $400,000. At 95% debt to equity, the bank will then only give you a loan for $380,000 – meaning you need $70,000 down instead of $20,000.

“I have been cautioning people not to go in firm on any offer unless you are sure of your financing,” Mr. Gaetano says.

He had a client who recently bought a property in Toronto’s trendy High Park area for $1.6-million and the appraisal came in at $1.1-million, forcing the client to juggle some other investments to cover the shortfall the bank would not cover.

Keith Lancastle, chief executive of the Appraisal Institute of Canada, confirms that trend. “We understand anecdotally that it is happening in certain markets like parts of Toronto and parts of Vancouver,” he says. “Anytime you get into a seller’s market where you are looking at multiple offers, the market in that place at that time increases the value of the property.”

Mr. Lancastle says the appraisal process has kept the market in check by providing accurate values. “From a systemic perspective, it’s positive. What we saw in the United States is loan to value ratios went way out of whack,” he says.

Phil Soper, chief executive of Royal LePage Real Estate Services, says appraisals typically can come in a little under purchase price.

“If you look at numbers that come out of the professional appraisals book of business, they are risk adjusted because their principal clients are looking at a way to measure risk,” he says.

Mr. Soper says the impression may be that appraisers have gotten tougher, but he chalks it up to the rate of price appreciation slowing. As the rate of price appreciation falls, appraised values will follow.

“Appraisers don’t want to get caught overvaluing a property,” he says. “A change in market can make appraisers hyper sensitive to a change in market conditions.”

The message to consumers is to tread carefully when they make an offer and make it conditional on financing.

“What is at risk is you could lose your deposit,” Mr. Soper says, adding the vendor doesn’t really want to sell to somebody who doesn’t have the capacity to follow through on any deal. “Most people do have some wiggle room though.”

Farhaneh Haque, director of mortgage advice and real estate-secured lending at Toronto-Dominion Bank, said multiple offers are driving the situation. “We’ll see a differential between appraised value and the sale price in those situations,” she says.

Customers who get pre-approved for mortgages are told the banks lend money based on the home buyers’ credit strength but loans are also based on the property.

Bottom line is if you are getting into a bidding war, you may be on your own. Don’t count on your bank to back you up.

Garry Marr

gmarr@nationalpost.com

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