1. MarketViews
MAGDA MO’S PREFERRED CLIENT NEWSLETTER JUL/AUG 2010
Resale pRices Remain fiRm in June
The average price of a resale home in the GTA was $435,034 A total of 8,442 units were sold in June through the MLS®
in June, which was up by a solid 8% versus the June 2009 system, which was down 23% versus the 10,955 units recorded
average price of $403,972. With 2010 now half complete, the in June 2009. However year-to-date sales through June were
average price for the year stands at $434,620 or 13% ahead of up 23% to 50,455 compared to the first six months of 2009.
the comparable year ago figure of $384,161. The average GTA The record number of existing home sales during the first
homeowner has therefore experienced an increase of over half of 2010 were strongly weighted toward the beginning
$50,000 in home equity over the past twelve months. Having of the year, as many purchasers decided to move earlier than
said this, it is highly likely that price growth in the back half of the seasonal norm in order to get ahead of highly anticipated
the year will moderate considerably given the widening gap mortgage rate increases. The July 1st introduction of the HST
between listings and sales which continued into the month of (applicable to many resale-related items such as legal fees and
June. Accordingly price growth for the balance of the year will moving expenses) was another factor which prompted earlier
be in the single digits. than normal buyer activity.
GTA RESALE HOME SALES (AVERAGE PRICE) - JUNE GTA RESALE HOME SALES (UNITS SOLD) - JUNE
2007 2007
2008 2008
2009 2009
2010 2010
$360,000 $380,000 $400,000 $420,000 $440,000 6,000 8,000 10,000 12,000
Magda Mo Sales Representative
416-483-8000
sales@magdamo.com | www.magdamo.com
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2. Determining the life span of your roof
House
Smart
Assuming the roof system is properly installed, several
questions need to be answered in order to determine
the life span of a roof. To begin, the type of roof needs
to be examined. Whether the roof is sloped or flat, it has
consequently a typical asphalt composite shingle may
last longer on a roof with a greater slope as it allows the
shingle to dry more quickly.
two basic elements: the roof deck – which in residential Other factors that affect the roof’s life include its
construction is usually wood planks, plywood or oriented proximity to weather – including sun, wind, rain and
strand board (particle board); and a weather resistant or snow. Take exposure to the sun as an example. On a
water proof finish. sloped roof finished with asphalt composite shingles,
the portion of a roof that faces south or southwest
A sloped roof can be finished with asphalt composite typically has more exposure to the sun. The sun’s rays can
shingles, wood shingle/shake, clay tile, metal or slate cause the shingles to become brittle and age prematurely.
tile. This is why some areas may
show more deterioration
A flat roof’s waterproof than others.
The following summary provides a typical life
membrane typically
expectancy of various roof finish materials:
includes several layers or The conditions in an attic
plies of felt with a coat Asphalt composite shingle 15-25 years space can also affect a
of tar between each ply. Wood shakes/shingles 15-35 years roof’s life expectancy. If
The surface of the roof is Slate tiles 35-100 years insulation and ventilation
then covered with gravel Built up roof (tar and gravel) 10-30 years levels are inadequate, air
to protect the membrane Modified bitumen 15-25 years leaks from the interior
from the sun. Other flat Rolled roofing (selvage) 5-10 years living space can cause a
roof finishes include build up of warm, moist
a rubberized asphalt air. Under certain weather
membrane (modified bitumen) or plastic and rubber conditions, moisture condensation in an attic space can
membranes. Even a flat roof is slightly sloped to allow cause mould and mildew accumulation on the roof deck
the roof to drain properly and dry. and framing, which can lead to wood rot.
The slope of the roof must also be taken into account. It takes a trained eye to properly evaluate a roof and to
The weather resistant finish of a sloped roof can be understand the many factors that affect the performance
compared to an umbrella – designed to shed water or of a roof system. A properly trained home inspector
snow and dry before the material becomes saturated. can provide a homeowner with an objective opinion
The steeper the slope, the better the roof sheds water; regarding the condition of a roof.
PAGE 2

3. Condo Act primer
Condo
Corner
Although Ontario’s revised Condominium Act came into Canadian condominium issues and activities. CCI does
force almost ten years ago now, it is still worthwhile to not represent any one profession or interest group. Its
reiterate the full significance of the numerous changes members – condominium corporations, unit owners,
that were enacted at that time. boards of directors, managers, governmental authorities,
lenders and professionals from related fields – are
The Act introduced new ownership concepts by encouraged to work together to “create a successful and
establishing leasehold condominium corporations viable condominium community.”
and four types of freehold condominiums – common
elements, phased, vacant land and freehold ownership The Institute serves its members, not the general
condominium corporations. Reserve funds, which pay public, but does offer seminars and publications on
for major renovations, modernizations and emergencies, condominiums which may be useful to those considering
must now be backed up with formal studies, maintained this type of housing. Its condensed edition of the Act, “A
at newly-prescribed levels and invested according to an Shortened Version of the Condominium Act, 1998 for
approved plan. Most condominium boards will have an Directors,” is a handy reference guide for Boards and a
owner-occupied director to represent that segment of less intimidating legal read than the full Act. If you want
the residents, a particularly important improvement in some explanation with your legalese, a collection of
buildings with high tenancy rates. conference presentations entitled “New Condominium
Act Passed!”, includes expert interpretations of sections
The new Act, almost three times the length of its of the Act but does assume a basic understanding of
predecessor, also places new responsibilities of care, condominiums.
diligence and skill and therefore liability on condominium
directors and officers, unit owners who are selected to “Just lock the door and go” is the phrase most
oversee management of the complex. Unit owners may commonly linked to condominiums, but it may give
have more say in changes to the common elements, some buyers a false impression about the carefree
assets and services, but they can become responsible for nature of condominium ownership. While this popular
insurance deductibles. housing style does lighten the home maintenance load,
the financial side of ownership still requires attention.
Condominiums, introduced with the first version of the Condominium owners are encouraged to become
Act in 1968, have grown to represent approximately one active in management of their complex to protect their
third of the home real estate market, according to the investment and preserve the standard of living that first
Canadian Condominium Institute (CCI). attracted them to the building.
This independent, non-profit organization, formed in
1982, serves as a clearing house and research centre on
PAGE 3

4. TO MY VALUED CLIENTS
Two of the most often asked questions we as REALTORS® Many economists are forecasting a further 100 basis point
get is where are mortgage rates going and whether it is increase by the end of 2010 and another 150 points by the
better to go fixed or variable? Of course, there are many end of 2011. If that happens, you can surely expect variable-
factors involved and the influences are quite different with rate mortgages to increase along the way.
respect to fixed and variable-rate mortgages.
At present you can get a five-year fixed rate mortgage for
Fixed-rate mortgages are highly affected by bond yields. about 4.6% and the closed five-year variable rate mortgage
Right now bond yields are rising thus leading lending is approximately 2.35%. Whether you should go fixed or
institutions to increase their rates on fixed mortgages. variable depends largely on your risk tolerance. Fixed-rate
Fixed-rate mortgages are now higher than they were just a mortgages offer you the peace of mind of a set rate and a
few months ago and that trend could continue if bond yields predetermined amortization schedule, but you will definitely
continue to increase. pay a premium for that peace of mind.
Variable-rate mortgages, on the other hand, are closely linked As usual, your client referrals are both highly valued and
to the Bank of Canada’s benchmark lending rate as well as much appreciated. Until next time, take care!
the cost of funds and market conditions. On June 2nd, the
Bank of Canada raised its rate by 25 basis points and lenders
immediately followed suit on their variable-rate products.
PEARLS OF WISDOM
Why athletes can’t have real jobs:
Football commentator and former player Joe Theismann: “Nobody in football should be called a genius.
A genius is a guy like Norman Einstein.”
Chuck Nevitt, North Carolina basketball player, explaining to Coach Jim Valvano why he appeared nervous at
practice: “My sister’s expecting a baby, and I don’t know if I’m going to be an uncle or an aunt.”
Torrin Polk, University of Houston receiver, on his coach, John Jenkins: “He treats us like men. He lets us wear
earrings.”
“YOuR RefeRRals aRe sinceRelY appReciaTeD!”
Magda Mo Sales Representative
416-483-8000
Sutton Group Bayview Realty Inc., Brokerage
1820 Bayview Avenue, Toronto, ON M4G 4G7
sales@magdamo.com | www.magdamo.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 © 2010
Mission Response Inc. 416.236.0543 All Rights Reserved. D114
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