Toronto Condo and Real Estate Blog

The end of a three-year assessment freeze could mean homeowners in some parts of the province may face double-digit hikes in property taxes. The provincial assessment freeze ended on January 1st. However, the Ontario government says it plans to spread out any assessment increases over the next four years.

The freeze was initiated following several complaints from property owners to the Ontario Ombudsman’s Office that the Municipal Property Assessment Corporation (MPAC) was conducting inaccurate and unfair assessments. Following an investigation, the Ombudsman’s Office made 20 recommendations for improvements to MPAC’s assessment system including changes to the way the Crown Corporation communicated with property owners.

As of the last report, the Ombudsman stated that MPAC had completed 10 of the 20 recommendations and was moving forward on the remainder. Among the completed recommendations is a revised brochure that is sent out with reassessment notices. This brochure now mentions how important it is that MPAC’s information be accurate and urges people to report any inaccuracies. It tells them clearly how they can review their assessment and look at up to 24 property comparables, through a section of its Web site called “About My Property.” It also stresses: “If an error has been made, we will correct it. We are also happy to explain how we arrived at your assessed value and answer any questions.” Finally, it explains all the various ways you can complain about or challenge your assessment. In addition, the MPAC Web site now offers a lot more information about how properties are evaluated, and has posted many of its procedures online.

A new Property Taxpayer Web Portal is also being developed, through which owners will be able to access their Property Profile Report and comparables. The assessment notice form itself is also being redesigned for 2008. MPAC has done internal consultations, focus groups and property taxpayer customer interviews about this new form – but it is still reviewing it, because of the potential impact of the province’s new four-year reassessment schedule.

In the meantime, the revised assessment process is under way and property owners will be receiving their assessments in August and September. Current property taxes are based on market value assessments conducted by MPAC for January 1, 2005, and are determined by comparisons with the average city property value. If the estimated value of a property increases at a rate below the city average, the homeowner’s property tax will decrease. If property value increases at a rate above the city average, the tax will increase. The reassessed values, with a valuation date of January 1, 2008, will apply to the tax years 2009 through 2012.

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Contact the Jeffrey Team for more information - 416-388-1960

March 5, 2008 — President Maureen O’Neill announced today, Toronto Real Estate Board Members recorded 6,015 resale home transactions last month, down 11% in the Greater Toronto Area overall, 14% in the City of Toronto and 9% in the 905 suburbs compared to February 2007.

“To get an accurate perspective of current market conditions, a number of factors have to be considered,” said Ms. O’Neill. “With 18,018 properties available for sale, inventory has decreased seven per cent from last February.”

“This indicates that despite moderate sales, there is not an over-supply of homes on the market. Generally, properties that are listed are selling fairly quickly and with a list to sale price ratio of 99%, for the most part, sellers are realizing their asking price,” O’Neill added.

Despite the decrease in the number of sales from this time last year, there was positive news with respect to prices in February. At $382,048 in the Greater Toronto Area and $424,235 in the City of Toronto, the average price increased four and two per cent respectively compared to February 2007. As well, the time on market in February was 30 days compared to 35 days a year ago.

Despite the overall decline, some GTA neighbourhoods experienced strong sales in February.

In Pickering (E13) sales rose 28% overall compared to a year ago due to a strong increase in condo townhouse and condo-apartment transactions.

Strong condo-apartment sales also drove transactions in Rexdale (W10) to an overall increase of 18% compared to February 2007.

Richmond Hill North (N05) experienced a 19% sales increase compared to a year ago primarily as a result of strong detached home transactions.

“All economic indicators are in place for an active year in the GTA, and as the weather improves sales are expected to increase as well,” said Ms. O’Neill.

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Contact the Jeffrey Team for more information - 416-388-1960

By Derek Raymaker - Globe and Mail

Toronto is among the most extraordinary condominium markets in North America, not so much because of the quality of the suites but the vast array of pockets that seem to perform well.

As we look at the lesser known condo submarkets around the Greater Toronto Area, it’s apparent that the city’s proud neighbourhoods have played a role in staking out markets beyond downtown.

The eastern reaches of Toronto include some of the most stridently independent neighbourhoods, including The Beaches, Riverdale, Leslieville and the Danforth. Each of these communities has endured its own peaks and valleys in terms of affluence, and all are in demand today among younger buyers. In the case of The Beaches, older empty nesters are drawn to the shoreline neighbourhood.

On the fringes of these neighbourhoods are Kingston Road and Eastern Avenue. Both arterial roads are flush with heavy traffic during the day, but they also have surplus commercial and industrial buildings ideal for lofts or more experimental condominium developments.

The east end has become a test canvas of sorts for art-deco, mid-rise designs reflecting South Beach and other maritime styles. Certainly, the buyers who gravitate to the east end are more likely to take a chance on designs that reflect their free-spiritedness rather than the standard cookie-cutter suites of downtown or the harbour front.

But the kicker for most buyers is, as always, affordability. At the end of 2007, the average price for this neighbourhood stood at $402 a square foot, pretty close to the Greater Toronto average of $399, according to data collected by RealNet Canada. That’s up 17% year over year.

The average suite in this neighbourhood is quite a bit larger than the average in Toronto, and prices are higher, too, at an average of $379,601, compared with $355,998 in Greater Toronto. That’s also a cool hundred grand higher than the area’s average price of $276,992 in 2006.

Hyde Park Homes has been active in the east end, starting with a successful 18-unit infill townhouse redevelopment in the Upper Beaches and following it up with Leslieville Lofts just north of Queen Street East at Broadview Avenue.

Leslieville Lofts will be a new eight-storey building on the site of a former auto-body shop made up of 157 suites and 14 two-storey townhouses, with prices ranging from $180,000 for 470 square feet to $1.4-million for a 2,265-square-foot penthouse.

Leslieville Lofts, which was launched last November, features open-concept spaces and vast terraces on the seventh floor. The townhouses will be zoned as live/work units.

If you’re looking for spectacular views, Minto’s Skyy project at the top of Pottery Road near Danforth Avenue will soar 25 storeys above the Don River Valley. It features contemporary open-concept designs suited for younger buyers, but it’s also been a big hit with local residents who want to cash in on their valuable houses but stay in the same neighbourhood. The project is now under construction.

Prices here range from $189,000 for 522 square feet to $1.5-million for a 4,482-square-foot penthouse with two terraces and an enormous living area with a curved bank of floor-to-ceiling windows.

An authentic loft project - living space that is converted from industrial use - that has turned a lot of heads for its shape-shifting design and intriguing courtyard is the Printing Factory Lofts, developed by Beaverbrook Homes. This 254-unit project will also include 44 stacked townhouses with street-level access on Boston Avenue, just north of Queen. Prices here range from $189,000 for 573 square feet to $491,000 for 1,235 square feet, with extensive landscaping in common outdoor areas as well as private yards.

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Contact the Jeffrey Team for more information - 416-388-1960