Here’s a strange anomaly for you: Even though more homes were for sale this April compared to one year ago, home prices were up by as much as 24.5 per cent that month compared to a year earlier.

If you’re still in the market for a house you may have noticed that significantly more homes – 33.6 per cent to be exact — were for sale last month compared to April of 2016. But the greater supply did little to stem the upward flow of the city’s house prices, according to figures released by the Toronto Real Estate Board (TREB).

Based on TREB data, the average cost of a home in Toronto climbed to nearly $921,000 last month, up almost $200,000 from last April’s average house price of $739,762.

April also saw sales nudge down by 3.2 per cent compared to a year ago, a sign, say some, that the Toronto real estate market is finally cooling off.

Any which way you look at it, more listings will inevitably signal a positive note for the Toronto real estate market, says a TREB economist.

“It was encouraging to see a very strong year-over-year increase in new listings,” said Jason Mercer, director of market analysis. “If new listings growth continues to outpace sales growth moving forward, we will start to see more balanced market conditions.”

Still, the board is not expecting any downturns in home prices. In fact, Mercer says the spring and summer months will see the growth of house prices well above the rate of inflation.

A greater housing supply could be a reaction to the market’s big year-over-year price jumps and the province’s newly implemented Fair Housing Plan, though it’s too early to tell.

Another indicator that the market is cooling showed in sales of detached homes, which slipped slightly from March to $1,205,262 from $1,214,422. Semi-detached homes also dipped a bit last month, while condo prices increased by 4.3 per cent.

In today’s scorching hot real estate market it’s easy as a buyer to become discouraged as each house you love gets lost under a pile of bids that come in at ridiculously high sums over the asking price.

Take comfort knowing that there are situations, though rare, where it’s not always about the top dollar for the seller. An American couple made international headlines in March when they opted to sell their Oakville home for $150,000 less than the highest bidder thanks to a heartfelt letter they received from the buyers.

The Sohs, a family of six with four children between 9 and 14, told the sellers that the family had returned changed from a six-week missionary trip to Africa, where they visited slums and taught in village schools. Returning to their 3,600-square-foot home, the Sohs realized the space was too large. They decided they would sell their current home and find something cheaper so the family could use the money saved for good works.

Here is some of what they wrote:

‘Our desire is to downsize and live simply so others may simply live,’ they wrote. ‘The gift of your home would allow us the freedom to do more mission trips and it would free up more of our finances to take care of the poor and needy and build His Kingdom. This would also allow us to further build in our children what has been planted in their hearts, to love those in need more than the things of this world.’

They are trading in 3,600 square feet for a home of 1,983 square feet.

The home, in original condition on a pool-sized, pie-shaped lot, was listed for $789,000. The Sohs paid $200,000 over asking. They were one of 14 offers on the property.

The Crofts, who now live outside of Denver, said they wanted to sell their home to a family who would treasure the community they lived in for 15 years. They had a dollar figure in mind that would make for an easy move and purchase of a home in Colorado. They don’t see taking less money as a loss. “When that number was met, we thought, ‘What’s enough? What’s the point?’” Michelle Croft told the Toronto Star.

Adding a personal touch to an offer is nothing new in Toronto real estate. And while it seems like a lot of extra work, it may just be worth the effort. Work at winning over the seller but please be authentic because most people can smell phoney baloney claims, lies and insincerity.

Be creative and original. Tell the sellers what you love about their home and how you plan to enjoy it. Introduce them to your family. Include a photograph, as the Sohs did.  If writing is not your thing, consider introducing your family and your story to them via video. Who knows? Your story may just give you the added edge.

Know Thy HELOC

What makes Home Equity Lines of Credit (HELOC) so attractive for so many is that these credit lines are so abundant, so cheap and so easy to get.

As house prices continue to rise, a HELOC can be a great option for cheap and easy money to fund home renovations, consolidate debt or pay for pricey post-secondary educations. But don’t approach these loans carelessly. There are still things to consider when borrowing against the equity in your home.

According to the Globe and Mail, for many Canadians, HELOCs have replaced credit cards as their number one source for borrowing. Outstanding balances on lines of credit hit $266-billion in March of 2015. According to Statistics Canada, they were just $35-billion in 2000 and $100-billion in 2005. Today, HELOCs comprise 59 per cent of Canadians’ non-mortgage personal debt.

Major banks generally offer home equity lines of up to 80 per cent of the equity in a home. And some lending thresholds automatically increase with each mortgage payment creating a growing credit source potential.

Credit counsellors caution that home equity lines of credit allow people to borrow sums far greater than ever before. And since most financial institutions require payment only on the interest of the credit lines, the principal can grow quickly over time.

They worry what will happen to debt-ridden Canadians should interest rates rise or if the economy goes south. Some say events far less catastrophic such as an illness or decline in the housing market could ruin highly indebted Canadians.

According to the CBC, homeowners could face big problems with interest rate hikes as the increases would apply to variable-rate lines of credit and mortgages. If interest rates jumped by two or three per cent, those who pay only interest on their lines of credit would see payments jump by a whopping 50 per cent.

More Pros of HELOCs:

• The money is cheap cheap.
• The money is flexible as you can borrow as much or as little of what you need up to your limit.
• ou can pay off any time in full without penalty
• – HELOCs offer the lowest possible payment and flexible payment plans, including an interest-only option.

Cons:

• It’s easy to borrow more than you initially intended.
• It’s much harder to switch a HELOC to another lender without paying legal fees.
• HELOC rates are not fixed. They can always be arbitrarily increased by the lender, even if the prime rate doesn’t change.
• Lenders can reduce your HELOC borrowing limit for any reason, even if you have a perfect repayment history. This may happen when you carry a large balance and continually rack up debt and/or make only small payments. It may happen more if home prices start falling or unemployment starts rising notably.
• Title insurance fees can be higher on a HELOC than on a regular mortgage.
• HELOCs are more difficult to transfer to a new property. It’s common to have to discharge or pay them off completely.
• There can be a negative impact on your credit score if you borrow a large percentage of your approved HELOC limit.

You may have read the story about that vacant home in the city’s west end that’s been empty for more than 25 years. Neglect and suffering centre on that tale of woe but that’s not the kind of unoccupied homes we’re talking about here.

Newly released 2016 Census numbers from Statistics Canada show that 99,236 homes in Toronto are not regularly occupied. Again, that’s nearly 100,000 dwellings in the city that are left empty for the most part. These numbers are identified by the owners of the residences.

According to Better Dwelling, this represents 4.5 per cent of all homes in the city, and a 10.5 per cent change over the past 5 years. The general population grew by 4.5 per cent during the same period, which means this trend appears to be accelerating.

A large part of the city comes in with dwelling vacancies under five per cent. However, a few concentrated areas skewed up the numbers such as the Concord area of Vaughan, which showed unoccupied dwellings at 35.27 per cent.

The downtown averaged higher than the rest of the city. South of Bloor Street, east of Roncesvalles Ave. and west of Yonge Street showed an average of 8.79 per cent unoccupied. King St. West, also known as the fashion district, showed 21.81 per cent or 3,316 units not regularly occupied, while the stretch going up Yonge Street also had a higher than normal concentration compared to the rest of the city.

While you might think foreign buyers are responsible for the vacancies, remember that the numbers comes from census takers, who are Canadian residents and not offshore investors. Some believe owners are using their properties for short-term rental uses such as the type you might list with Airbnb or a pied-a-terre. Still others believe they are owned by speculators who are waiting for the right time to sell.

According to the Census released in February, Canada is home to 1.3 million temporarily unoccupied residences. That’s enough to house 3.2 million people. The Toronto numbers have tripled since the 2001 census. They are followed by Montreal and Vancouver.

But it is smaller cities, towns and rural areas that lay claim to having the most empty homes percentage-wise with St. John’s, Saskatoon, Halifax and St. Catharines leading the pack.

In 2015, Paris implemented a tax that has since tripled to 60 per cent on vacant dwellings. And last year, Vancouver issued an empty home tax aimed at making properties available for lease in a city that has near-zero vacancy rentals.

Throughout history when a scapegoat can be conveniently blamed for something negative it’s human nature to point a finger. When that scapegoat is foreign, even better goes the thinking. Far-off culprits are much easier targets thanks to distance and unfamiliarity.

Could that thinking be behind the GTA’s high house prices?

It depends who you talk to. For some time, foreign investment in real estate has been blamed for the rising cost of housing in the Toronto real estate market. Fuelled in large part by the Vancouver market, offshore investors were slapped there last year with a 15 per cent tax. The result of which has been a big drop in foreign buying.

So the question is, is the same true of the GTA market? The Toronto Real Estate Board (TREB) recently released new research refuting that theory. The TREB information showed that fewer than five per cent of the 113,133 residential real estate transactions in 2016 involved foreign buyers. The data showed that more than half were buying homes for themselves or family members. According to a November Ipsos survey of TREB agents, about 25 per cent of the homes purchased by non-Canadians were rental investments.

Despite calls for a foreign buyer tax like the one in Vancouver, TREB believes such a move would be misguided. Should a 15 per cent foreign buyer tax be implemented in the GTA, TREB fears the move may hike real estate prices outside of the GTA, where the tax doesn’t exist. It also warns that such a tax could reduce the already limited supply of rental housing and discourage immigration to the GTA.

But not everyone buys the TREB findings. Some say the TREB figures are not a true picture of foreign ownership in the GTA because the numbers don’t account for new construction sales, which could up the figure from TREB’s estimate of 4.9 per cent by another five to 10 per cent.

The Vancouver tax seems to have worked. In January, sales were down about 40 per cent from the same time last year. But Ontario Premier Kathleen Wynne has said that the province will not follow British Columbia’s move to introduce a tax on foreign homebuyers.

Meanwhile, don’t look for price relief in the near future. TREB reported that the average home price in the GTA skyrocketed at the end of 2016. The average home price hit $730,472 in December, which is a 20 per cent increase compared to December 2015. Prices are estimated to rise again substantially in 2017 with hikes in the neighbourhood of 10 to 16 per cent.

1. Inventory, what inventory?

Your home will be the belle of the ball in the current market which is crying for stock. It’s pretty simple economics: when supply is low, with high demand, you are in the most enviable driver’s seat imaginable. Given the bevy of buyers on the market, competition for your house will be fierce. So worries about keeping your home ship-shape for weeks or months on end while strangers roam through need not concern you.

2. Mortgage rates

Too bad there wasn’t a crystal ball that could tell us what was coming. For years, forecasters have been crying about a rise in interest rates and rightly so. They really don’t have much room to go the other way so up seems a likely option. The question is when? When rates rise it will impact consumers’ buying power. Putting your house on the market while rates are low is a smart move as more buyers will be attracted to your property than if rates rise a point or two. More interest means more competition and more competition usually always means more money for you.

3. It’s urgent

You could say that about buyers in February and March. Who else wants to trudge through snow, ice and cold, bundling up and unbundling with each new viewing? Those are some determined purchasers. Maybe they’re the result of a job transfer or an inheritance. Who knows? Just know that they’re more motivated.

4. It’s speedier

In wintertime, many of those who support the housing industry are not nearly as busy as at other times of the year. We’re talking about banks and lending institutions, mortgage brokers, lawyers, home inspectors, contractors, realtors, surveyors, architects. Finding the professional for the task or service you need will be easier and quicker now as, quite simply, they’re not as swamped.

5. House prices go up, up and away

High demand and low inventory add up to one thing: higher housing prices. That’s good news if you’re selling. Since you likely plan to buy another home, though, it may be best to sell now so that you aren’t affected by rising house prices or mortgage rates. Waiting could cost you more.

Many of us spend January, February and March somewhere decidedly warmer than the GTA if only for a week or two of heat, sunshine and flip flops.

The rigmarole of preparing for a trip can be exhausting so don’t forget about the home you’re leaving behind. Many people simply lock their front door and hope for the best when leaving their houses for extended periods of time. But there are better ways. Here’s how:

Get to Know Thy Neighbour

Since they’re right there and can easily view anything that’s gone awry, it’s best to let them know you will be on vacation. Ask them to keep an eye on your house and clear away evidence (newspapers or dropped-off packages, for example) that show you’re not home. Get them to put out a garbage or recycling bin on garbage day so your place looks lived in. Give them your contact info so they can reach you should an emergency occur. If you’re not comfortable asking this of your neighbour, ask a friend or relative to stop by a few times a week to ensure your house looks occupied.

Shovel the Snow

If you’re the only house on the block with a snowy driveway, that’s a sure giveaway that someone isn’t home. Find a neighbour kid, family member, friend, or landscaping company to clear your drive and sidewalks of snow. Naturally you will need to offer to pay them for their time and trouble, but that beats coming home to find your door ajar.

Stop Mail

Overflowing mail on your porch and heaps of unread newspapers are a clear sign that you’re away. Be sure to cancel the newspaper and postpone mail delivery. Flyers and freebie newspapers should be disposed of by a neighbour or friend who’s checking in on your home every few days.

Keys and Locks

That spare key you have hidden in a fake rock by your garage should be brought inside while you’re on holidays. Burglars know where to find keys no matter how good a hiding spot. Locking your garage door is a good idea even though those doors that have an automatic garage door opener are quite secure. Still, thieves have figured out ways to get in so security experts recommend installing a deadbolt-style lock on your garage door.

Careful with the GPS

Don’t stash your portable GPS inside your vehicle that is parked at the airport. Thieves can break in and discover where your home is easily. Whether your unit is portable or built-in, you’re best to set home for a spot near your home, good enough to get you to familiar territory, while sending a potential burglar off course.

Install Timers

Your lights and electronics should be wired to turn on a certain random times of the day and evening because a dark, quiet house for a week straight is a sure sign you’re not there.  Install timers not just on lighting but also on your radio and TV. The noise and flickering light associated with radio and television will detract would-be robbers.

Say No to Social Media

Tempting as it may be, bragging about your fun in the sun on social media is not wise as it broadcasts the fact that you’re currently not home. Even though all of your accounts are private, you’re best to wait to share photos and word of your vacation until you get home.

Hire a House Sitter

It’s ideal if you have a friend or relative who doesn’t mind leaving his or her home for a week or two for a mini vacation at your house. This option is pricier than others as you will need to compensate well for the inconvenience. But the price will be worth it, knowing that everything is being looked after. There are also professional companies that offer this service, which is likely even pricier. You will need to spend time inquiring about a service’s reputation, though. Check references, read reviews and background checks.

Being a first-time home buyer in Toronto can be a challenge with detached homes going for close to $1 million. To get in the market at that level, your household income needs to top six figures and you’ll need a sizable chunk for a down payment and your closing costs.

If you’re just entering the real estate market for the first time those costs can seem impossible but there are ways to get a piece of the rock as a first timer. For starters, why not consider a condo? This more economical choice gets you into the market and lets you build equity while your property value increases as you pay down the mortgage. As your income also increases over time you will be in a position to trade up and move into, say, a semi-detached home.

As for how to calculate how much you can afford, the Canada Mortgage and Housing Corporation (CMHC) suggests that your monthly housing costs not exceed more than 32 per cent of your gross monthly income. The CMHC deems housing costs as your mortgage payment, interest, property taxes and heating costs, also known by the acronym PITH. So if you and your spouse make $120,000 per year, your total monthly housing costs (PITH) should not exceed $3,200 per month.

The CMHC’s other rule is that your entire monthly debt load should not exceed more than 40 per cent of your gross monthly income. So if with other loans and credit card debt plus your housing costs, your debt load exceeds, in this scenario, more than $4,000 each month lending institutions may look upon your file unfavourably.

Know that help is available. If you are looking to buy in Toronto, there are four first-time home buyer programs available thanks to federal, provincial and municipal governments:

1. The federal Home Buyers’ Plan is a program that lets you withdraw up to $25,000 per year in RRSPs to buy or build a home. With your partner, that could be as much as $50,000.
2. The federal First-Time Home Buyers’ Tax Credit is a rebate of approximately $750 to help first-time home purchasers with costs such as legal fees and land transfer taxes.
3. The Ontario land transfer tax rebate is a new program instituted by the province to assist first-time buyers with a refund on all or part of the tax.
4. The Toronto Municipal Land Transfer Tax Rebate is a reimbursement program of up to $3,725 that applies to first-time purchasers of both new and existing homes.

Before you begin visiting open houses you probably should get pre-approved for a mortgage. The reason this is important is that it will help guide you when house hunting. There is nothing worse than thinking you can afford a certain price and then finding out that that is not the case. Based on monthly income, your down payment and the mortgage interest rate, you can figure out what you can afford thanks to mortgage affordability calculators, which are available online. Also, don’t forget to account for the other costs associated with buying a home. These include property insurance, condo fees, home inspections, appraisal fees, legal fees and moving expenses.

Finally, if you don’t have a second income to rely on or if your total household income isn’t enough and you still really want to purchase a home consider doing so with a friend or another family. While this would clearly pose numerous challenges and you’d need a real estate lawyer to manage all the scenarios (how are home maintenance expenses divided and what if one side decides to sell?), this set-up is one way to get your foot in the door. Remember it doesn’t have to be forever and it may be your first step toward financial independence.

January is the month of new beginnings, warm-weather winter holidays, winter sports and cutting back just a little on those items that aren’t so good for us.

January is also a good month for real estate activity, despite what you’ve heard. If you’re thinking of selling or buying a home in 2017, you may want to give January a try.  In markets like Toronto and Vancouver virtually any month is a good month to buy or sell. Real estate activity naturally slows in late December and very early January. But by the end of January’s first week it’s back to business as usual.

One big reason you want to sell your house in January is because you will have less competition. What does that mean? You can likely command a higher sale price thanks to fewer homes on the market.

On the flip side, for buyers, your odds of getting into a bidding war with multiple buyers are reduced because many purchasers are dealing with post-holiday debt.

Gone are the days when buyers waited for warmer temperatures because that’s the time when the majority of homes became available. Buyers today are more tech savvy than ever and as a result they can view real estate around the clock on their phones, devices and computers. Why wait for spring?

Keep in mind, too, that as a buyer your realtor will be able to really focus in on your needs, compared to the spring market when the market is saturated with buyers looking to purchase a home and real estate agents are juggling a heavy load.

If you’re selling, you know those buyers trotting through your house and yard are serious. No one braves the bitter cold and snow, donning boots and parkas as they schlep from house to house as a fun winter pastime.

Try to keep your exterior tidy and, if possible, decorate with outdoor arrangements and seasonal greenery. Clear ice and snow off walkways and steps and make sure your property is well lit. Also be sure to provide pool reports and try to provide photos of what your house looks like in spring and summer.

While it may be counterintuitive, it’s said that homes actually sell quicker in winter. Low inventory may be the reason. In addition, buyers tend to be more motivated and not as willing to slog from home to home to home.

New lending rules definitely make it tougher for mortgage borrowers, especially first-time home buyers.

The sweeping changes introduced by the federal government last month are intended to stem the debt load of Canadians, some of whom have taken on sizable mortgages thanks to low interest rates.

The new rules centre on a kind of stress test to see if the borrower could afford a mortgage should interest rates jump up. Under the new plan, borrowers are assessed on a five-year standard rate of 4.64 per cent for a five-year loan, despite the fact that most lenders currently offer rates far below that number.

The stress test also includes other requirements such as stipulating that homeowners spend no more than 39 per cent of their income on home-related expenses such as mortgage payments, heat and taxes. Total debt must not exceed 44 per cent under the new rules.

The new rules apply to any insured mortgage in which the buyer puts down less than 20 per cent of the home up front.

By making it more difficult to obtain a mortgage, the hope is it will temper housing demand, prompting prices to fall or not rise so quickly.  The Bank of Canada announced that the rules will reduce the risk of Canada’s financial system becoming unstable.

According to Ratehub.ca, what this means generally speaking, is a family with a $100,000 income that saved $40,000 for a down payment could previously afford a home valued at $665,000. But under the new rules, that same family can only afford a home priced at $505,000.

The new policy makes it tougher for first-time home buyers, whose savings and incomes are generally limited. So if you’re buying a home in Toronto at $700,000, the minimum down payment jumps from $35,000 to $45,000. Homes under $500,000 require a down payment of five per cent, while those over $1 million need 20 per cent down.

The new plan also takes aim at foreign ownership of Canadian real estate. Homeowners are still eligible for a capital gains exemption on their principal residence but are now required to report the sale of their property to the Canada Revenue Agency. Exemptions will only be granted to Canadian residents and not apply to foreign buyers.

Also, as of Nov. 30, the federal government will require portfolio-insured mortgages to meet criteria that previously only applied to high-ratio insured mortgages.  The new requirements include a maximum amortization of 25 years, a maximum purchase price of less than $1 million, having a minimum credit score of 600 and the property must be owner occupied.