Andre Smit's Real Estate Round-up
Thursday Sep 17th, 2020Share
Another busy month in the exciting world of real estate!
We are still experiencing a sellers market, as demand continues to outstrips supply. Most listed homes are now selling in multiple bid situations! Mortgage interest rates are still low, while the number of new listings are now starting to increase, but not enough to stabilize the market.
According to the Toronto Real Estate Board, (the largest in Canada), compared to August last year, total new listings were up by 57%, while total actual physical sales were up by 40%. This resulted in the average price for all homes, increasing by 20% from the same month, the year before! The average days that listings spent on the market, before selling, decreased by 32% to 17 days, from the same month, a year ago.
Average detached house prices have increased by 19.9%, compared to August, 2019. The number of total new listings, increased by 33%, compared to the same period, last year. Active listings decreased by 25% from the same month, a year ago. However, detached homes priced under $1 million, semi-detached homes and town homes, all increased in price between 14 and 23% over the same month, a year ago, with condo apartments only increasing by 9.6%! This shows us that a lot of buyers are taking advantage of the low interest rates, in order to move out of the non-detached homes, into detached homes. Most of these buyers are very active in the sub $1 million price range.
My advice to all home owners looking to downsize, is to take advantage of these market conditions. Sell now, with a fairly long closing, so that you can reap the benefits of a sellers' market, and hopefully, look to purchase in a more balanced market, as more new listings continue to hit the market.
This all points to a busy and vibrant fall market, and beyond! If you are contemplating putting your home on the market, now is the time to contact me for a free, no obligation, market valuation, in order to take advantage of the expected increased buyer activity.
This month, I will be examining the replacement of asphalt roof shingles, which are by far, the most popular roof coverings in the GTA. This is fortunately, only an expense that a home owner has to contemplate every 20-30 years. However, worn out shingles can result in roof leaks, and the resultant damage can be very costly.
There are basically 2 types of asphalt roof shingles – organic and fibreglass.
Organic, consists of waste paper saturated with asphalt to make it waterproof, and then a top coat of asphalt adhesive is applied, together with embedded ceramic granules. It is the most economical of the 2 types, but only has a class B fire rating. However, these shingles contain 40% more asphalt than the fibreglass ones.
Fibreglass shingles have a base layer of reinforced fibreglass mat, coated with asphalt and carry a class A fire rating. They are generally not as long wearing as organic, but are sometimes preferred due to their better fire rating.
All asphalt shingles are rated according to their warrantied life, which is 20-50 years. When replacing shingles, one should not consider any shingles with a warranty of less than 30 years. Shingles are all prone to damage over time, due to drastic temperature changes. They start curling at the edges or shrink, when close to the end of their life cycle. Rapid deterioration often occurs in shingles under down pipes, where water drainage occurs.
Costs vary between $4.00 and $5.75 / sq ft, excluding HST, for organic and $4.50 and $6.00 / sq ft, excluding HST, for fibreglass. This includes the cost of the removal of 1 layer of old shingles, before the new ones are placed. At this time, you may also need to repair chimney and wall flashing, as well as any damaged roof trusses. The roof repair industry is a very competitive market, and one has to be very careful before committing to a contractor. I suggest getting as many quotes as feasible, (at least 3). Be sure to get references, and then to check them out. Ensure that they commit to cleaning the site of debris completely, before leaving.
The attic space between the roof and the ceiling structure above the insulation, needs to have adequate ventilation, in order to remove the hot air accumulation in the summer, and the water vapor laden air in the winter. The potential exists for mold growth and ice damming in the attic over winter. To minimize the above issues, you should consider installing 2-3, aluminum wind turbines, with permanently lubricated and sealed ball bearings, in the roof. These ensure the adequate ventilation required, and can be efficiently installed at the same time as the roof shingles, for around $300 each.
Two years ago, I arranged for the replacement of the roof shingles at my town home block. I can unreservedly recommend George Zhao of Sunray Roofing. They were very professional, and price efficient. You can contact George, at 416-505-1932, for a quote.
Smit's Tip of the Month:
Get your lawnmower ready for winter storage, by adding a fuel stabilizer to the fuel tank and lubricating all the moving parts. Also lubricate all your garden tools to prevent rust forming in the winter. Cover your air conditioning unit to protect against any damage from snow and ice buildup. Clean leaves and debris from eaves and gutters to ensure proper water flow, in order to prevent ice from forming and backing up under the shingles. Clean your bathroom fans by washing the covers and vacuuming in and around the motors.
Please remember that I run a cash referral scheme, for all referrals that result in a buy or sell deal with me. Should you, your family or friends have any real estate questions, or indeed need the services of a great realtor, please do not hesitate to call me on 416-898-2852, at anytime.
Enjoy the last warm days of summer!