Another installment from Keller Williams Research . . .

Note that the 5.25% rate they refer to is the posted rate; available rates are around 3.5%

Don’t know about the spelling, but that’s the name of a song that was featured in the movie ‘Walk The Line’.

Folks, time’s-a-wastin’ on the opportunities in this market! A few months back, I wrote about how this market is a limited opportunity, sort of like the sales that car dealers have – limited opportunities. We are still in a ‘Perfect Storm’ of a real estate market, a never-before-seen convergence of reduced prices, lower rates than in history, and when it costs more to rent than to buy. It won’t last; it can’t, because as more and more sellers see the activity in the market, then more and more buyers will wake up and smell the roses, and then we’ll be in serious bidding wars again.

You just have to follow the conversations on FaceBook and Twitter, Active Rain and a few other places where Realtors gather, to get the picture of what is happening in the Canadian real estate markets. Scroll down a few posts and look at the charts in ‘This Month In Real Estate Canada’ and you’ll see what is happening.

Here’s a snip from a great post on http://Active Rain.com :

My little sister called me the other day and in an excited voice declared, “I think I might need to look at houses…It’s a GREAT time to buy a house right now, you know!”

After the pregnant pause ensued (the one where my condescending big sister brain struggled with my professional Realtor brain) I finally said, “No? Really? What makes you think that?” (You can tell which brain won out.)

“Well. I have a friend who just got a fantastic deal on a house and I think it might be time for me to think about looking!”

Ok, so which part of what I have been saying for months now did she mis

s? Apparently, the same part that ALOT of buyers are missing…that would be the part that sounds just like Charlie Brown’s teacher talking whenever somebody you aren’t listening to tells you something: Wah, wah, wah, wah…

Read the rest here

I’ve written before about the sort of herd mentality that surrounds buyers – when not a lot of people are buying houses, buyers seem to think the prudent thing to do is wait, because, after all, if it was a great time to buy, wouldn’t everyone be buying? Well, when everyone else is buying, prices go up, bidding wars ensue, and all the buyers lose. If that sort of buying is your preferred style, then I’ll be more than happy to help you. But if getting a great house at a lower price and at historically low interest rates is something that appeals to you, call me TODAY and let’s see if you can get in on this before it’s too late.

I know that a lot of people are worried about their jobs, but it costs less to buy than to rent, so unless you plan on living in your car when you lose your job, that’s really not a reason to wait.

The prize goes to those who take action. The action you need to take is to call me today at 905-208-7002

Canadian Housing Market Firming,
Government Support Remains Strong

While buyers absorb inventory and demand remains intact especially among first-time buyers, industry experts envision a continual shift to a more balanced market in the coming months. Home prices, which firmed in late winter, remained lower compared to last year but are showing clear signs of a potential rebound. With inventory levels still somewhat high, builders are proactively adjusting by slowing new residential construction starts, which now stand at their lowest level of the decade.

Spotlighting an interesting trend in the condo market, research suggests many of Canada’s older baby boomers and younger eco-boomers hold a preference for condos.

The low maintenance and smaller footprint are compelling points for the older generation, while the more affordable prices serve as an entry point for an aspiring younger generation of homeowners.

In a welcome surprise, April’s employment numbers showed an unexpected addition of nearly 36,000 new jobs compared to the anticipated loss of 50,000.

While this news is encouraging, the potential for future weakening in the labour market still poses a risk to overall housing demand.

Canada’s government remains firmly focused on supporting the housing market. The Bank of Canada cut the overnight rate to a record low and has made a commitment to keep rates at this level until mid next year. A commitment of this nature is unprecedented among central banks.

The Numbers That Drive Real Estate

1. Sales
2. Prices
3. Inventory
4. Mortgage Rates

According to the most recent data, existing home sales increased for the second month in a row. Home sales increased 7%, which built on the 10% gain the month before. The number of sold transactions now stands 18% above levels reported in January, when activity fell to the lowest level in a decade.

The monthly increases in activity were the most significant in British Columbia and Ontario. Sales were also up in the Northwest Territories, Manitoba, Quebec, and Newfoundland and Labrador.

Buyers are starting to take notice of lower prices, interest rates, and rising affordability conditions.

Average Home Price (in Thousands)

The pace of home price declines is tapering which is providing some glimmer of stabilization in the housing market. Home prices increased 2% from the previous month but is down 8% from the same time last year, which is the smallest year-over-year decline in six months.

The average home price currently stands at $288,641. The national average price continues to be skewed downward by lower activity in Canada’s more expensive housing markets, i.e., British Columbia, Alberta and Ontario which accounts for 67% of national activity. 7 out of 12 provinces and territories actually saw price increases.

Home Prices by Province
7 out of 12 Saw Increases

Inventory (Sales to Listing Ratio)

Market conditions moved toward balanced conditions due to increase in demand and fewer new listings. In the first quarter of 2009, there were 6% less homes entering the market compared to the previous quarter, which represents three consecutive quarters of declines in new listings.

Mortgage Rates

Average for: 25-Year Amortization,5-Year Term

Bank of Canada lowered its overnight lending rate to the lowest rate on record. As a result, mortgage rates decreased to 5.25% last month. Mortgage rates were 1.7 percentage points lower than the same time last year.

Recent Government Action

Bank of Canada Makes Historically Unprecedented Move

In an effort to stimulate the economy, the Bank of Canada has come to yet another historic cut in its interest rate policy on April 21. The Bank cut the overnight rate from .5 to .25%. This rate cut mostly influences traditional lending institutions but should also impact pricing in open markets as well.

The Bank has committed to keep rates as is until mid-2010. No known central bank has ever committed to anything of this nature, illustrating the Bank’s firm commitment to supporting the economy.

After a frigid winter that saw existing home sales plunge dramatically, the Toronto-area housing market continues to experience a fragile spring thaw.

The Toronto Real Estate Board reported 8,107 sales yesterday for April, down 7 per cent from a year ago, but less than the 47 per cent free fall experienced in January.

“Conditions in the resale housing market have improved markedly this spring,” TREB president Maureen O’Neill said.

Read More

How a Landlord Can End a Tenancy

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The Residential Tenancies Act (the Act) has rules for how a landlord can end a residential tenancy and evict a tenant.

  This brochure provides some general information about these rules.

It is not a complete summary of the law and it is not intended to provide legal advice.  If you need more information about the law, please see For More Information at the end of this brochure.

There are special rules for ending a tenancy in a care home.  These rules are not explained in this brochure.  For information about the rules relating to cares homes, see the Board’s brochure on Care Homes.

Information in this brochure

• Tenancy Agreements
• Agreement to End a Tenancy
• Notice to End a Tenancy
• Application to the Board
• Hearing
• Board Order
• For More Information
• Reasons a Landlord Can Apply to Evict a Tenant

Tenancy agreements

Tenancy Agreements

When a landlord rents a unit to a person, they enter into a tenancy agreement – a contract in which the tenant agrees to pay rent for the right to live in the rental unit.  This agreement may be in writing or it may be an oral or implied agreement.   A written tenancy agreement is often called a lease.

Fixed term tenancy

If the landlord and tenant agree that the tenancy will last for a specific period of time, this is called a fixed term tenancy.  This is because both the start and end date are set out in the tenancy agreement.  Most leases are for a fixed term, usually for a year.

Renewing a lease

The end of a fixed term tenancy or lease does not mean that the tenant has to move out or sign a renewal or new lease in order to stay.

The lease is renewed automatically on a month-to-month basis (if the rent is paid monthly) or week-to-week basis (if rent is paid weekly).  This means the landlord and tenant do not have to sign a new fixed term lease when the term of the lease runs out.  All the rules of the former lease will still apply to the landlord and tenant.

The landlord and tenant can also agree to renew the tenancy agreement for another fixed term period, or enter into a new lease.  If the landlord and tenant agree to enter into a new lease, the terms of the lease can only be changed in accordance with the Act.

Security of tenancy

Tenants have security of tenancy.  This means that a tenant can continue to occupy the rental unit until:

• the tenant decides to leave and gives the landlord proper notice that they intend to move out (see the Board’s brochure on How a Tenant Can End Their Tenancy for more information),
• the landlord and tenant agree to end the tenancy, or
• the landlord gives the tenant a notice to end the tenancy for a reason allowed by the Act, and
• • the tenant agrees to move, or
  • the tenant does not agree with the landlord’s notice, the landlord applies to the Board, and the Board issues an eviction order.

If the landlord gives a tenant notice to end the tenancy, the tenant does not have to move out.  The landlord must apply to the Landlord and Tenant Board (the Board) for an order allowing the eviction of the tenant.  The tenant has the right to go to a hearing and explain why they should not be evicted.

Landlord cannot lock tenant out of the rental unit

It is illegal for a landlord to change the locks to a rental unit or the building, without giving the tenant a key for the new locks.  The only exceptions are where:

• the locks are changed because the tenant has been evicted by the Sheriff, or
• the landlord is sure that the tenant has abandoned the unit.

It is an offence for a landlord to illegally lock a tenant out of their rental unit or the building.  If a landlord is convicted in Provincial Court under the Provincial Offences Act, they could be fined up to $25,000 if the landlord is an individual, or $100,000, if the landlord is a corporation.

If a tenant is illegally locked out and if the unit is still vacant, the tenant can apply to the Board for an order that requires the landlord to let the tenant back into the unit.

Agreement to End a Tenancy

Landlord and tenant can agree to end the tenancy

A landlord and tenant can agree to end the tenancy at any time, even during the term of a lease.  They can make an oral agreement to end the tenancy, but it is best to have a written agreement. This way, if there is any confusion about the agreement, both the landlord and tenant have a written copy to refer to.  Written agreements should be signed by all parties included in the agreement.

The Board has an Agreement to Terminate a Tenancy (Form N11) that landlords and tenants can use.

A landlord cannot require a tenant to agree to end a tenancy, or to sign, at the start of the tenancy, an agreement to end the tenancy at a later date.  (There are, however, certain exemptions for student housing and care homes.)

If tenant changes their mind

If a tenant agreed with the landlord to end the tenancy and later changes their mind, the tenant can ask the landlord if they will consent to a new agreement allowing the tenancy to continue.

The landlord can apply to the Board for an order to evict the tenant if the tenant refuses to leave as agreed to, unless the landlord and tenant make a new agreement.

Important: In this situation, the landlord can make an application to the Board for an eviction order without giving the tenant notice that they have done so.  The tenant will not be made aware of the application until they receive the eviction order from the Board.  The tenant can apply to the Board to stop the eviction if the tenant believes that the eviction order should not have been given.

Notice to End a Tenancy

Landlord must give proper notice

A landlord can end a tenancy only for the reasons allowed by the Act.

In most cases, the first step is for the landlord to give the tenant a notice in writing that they want the tenant to move out.

The proper forms a landlord must use for giving a notice to end the tenancy are available from the Board.  There are different notices for different reasons.

Landlords must use the correct notice form and fill it out completely and accurately to ensure that the tenant receives all the information that the Act requires.  If the landlord does not give the tenant all the information required by the Act, the notice may be void.  And, if the landlord files an application to evict the tenant based on an incomplete or incorrect notice, the application may be dismissed.

Reasons for ending a tenancy

The Act allows a landlord to give a tenant notice to end the tenancy early if the tenant, the tenant’s guest or someone else who lives in the rental unit does something they should not do, or does not do something they should.  This is sometimes called ending a tenancy “for cause”.

Some examples of “for cause” reasons for ending a tenancy are:

• not paying the rent in full,
• causing damage to the rental property,
• disturbing other tenants or the landlord, and
• illegal activity in the rental unit or residential complex.

There are also other reasons for ending a tenancy that are not related to what the tenant has done, or not done.  These are sometimes called “no fault” reasons for ending a tenancy.

Some examples of “no fault” reasons for ending a tenancy are:

• the landlord plans to do major repairs or renovations that require a building permit and the work cannot be done unless the rental unit is empty,
• the landlord requires the rental unit because the landlord, a member of the landlord’s immediate family or their caregiver wish to move into the unit, and
• the landlord has agreed to sell the property and the purchaser requires all or part of the property because the purchaser, a member of the purchaser’s immediate family or their caregiver wish to move into the unit.  (This reason for eviction only applies in rental buildings with three or fewer units and in condominiums.)

A complete list of the Reasons a Landlord can Apply to Evict a Tenant is provided at the end of this brochure.

When the landlord must give notice

Where a notice to end a tenancy must be given, the landlord must give the notice to the tenant before the termination date (the day the tenancy will end).  The amount of advance notice depends on the reason for ending the tenancy.

The list of Reasons a Landlord can Apply to Evict a Tenant provided at the end of this brochure shows the amount of advance notice required for each reason.

Tenant’s remedy

For some of the for cause reasons for ending a tenancy, a tenant can prevent the tenancy from ending by stopping the behaviour referred to in the notice, or by doing what the notice requests. This is a called a tenant’s remedy.  The notice explains what this is, and gives a deadline for the tenant to comply.  If the tenant does what the notice asks them to do by the deadline, the notice to end the tenancy is then void.  The landlord cannot apply to the Board to evict a tenant based on a void notice.

For those reasons for ending a tenancy that do not have a remedy, the tenant cannot do anything to void the notice.  However, this does not mean the tenant has to move out.

If the tenant does not move out after receiving a notice to end the tenancy, the landlord can file an application to the Board to end the tenancy. The Board will decide if the tenancy should end after holding a hearing.  Both the landlord and the tenant can come to the hearing and explain their side of the story to a Member of the Board.  (For information about when a landlord can apply to the Board see the Application to the Board section).

Application to the Board

Applying for approval to end the tenancy

A landlord can apply to the Board for approval to end a tenancy if:

• the landlord gave the tenant a notice to end the tenancy,
• the landlord and tenant have an agreement to end the tenancy,
• the landlord wants to evict an unauthorized occupant,
• the tenant gave the landlord a notice to end the tenancy,
• the tenant breached a condition of a Board order or mediated settlement and the order or settlement allowed the landlord to apply to end the tenancy,
• the tenant abandoned the rental unit, or
• the tenant was the superintendent and the superintendent’s employment has ended.

If there is a tenant remedy, the landlord cannot file an application to the Board unless the tenant fails to correct the behavior referred to in the notice, or fails to do what the notice requested, by the deadline set out in the notice.

Where the tenant does not have a remedy, the landlord can file their application as soon as they give the notice to the tenant.

Deadline to apply

In most cases, there is a deadline by which the landlord must file their application to the Board.

Most, but not all, landlord applications must be made within 30 days of the termination date set out in the notice.  However, there is no deadline for making an application to terminate a tenancy where the landlord has given the tenant a Notice to End a Tenancy Early for Non-Payment of Rent (Form N4).

The list of Reasons a Landlord can Apply to Evict a Tenant provided at the end of this brochure shows the deadline for filing each application.

Hearing

A hearing will be scheduled

In most cases, the Board will schedule a hearing to decide the landlord’s application.  However, the Board will not usually schedule a hearing if the application was made because the tenant:

• gave the landlord a notice to end the tenancy, or
• made an agreement with the landlord to end the tenancy, or
• breached a condition of a Board order or mediated settlement and the order or settlement allowed the landlord to apply to end the tenancy without notice to the tenant.

If a hearing is going to be held, it may be one of three types:

• an oral hearing, where the landlord and tenant appear in person before a Member (this is the most common type of hearing),
• a video conference hearing, where the hearing takes place using a video camera link between the Member, the landlord and the tenant, or
• a telephone hearing, where the hearing takes place using a telephone link between the Member, the landlord and the tenant.

The Board will decide which type of hearing you will have.

Landlord must inform tenant of the hearing

The Board will issue a Notice of Hearing and give it to the landlord.  The landlord must give a copy of the Notice of Hearing and a copy of their application to the tenant.  The deadline for giving the Notice of Hearing depends on the reason the landlord is ending the tenancy.

Information about the deadline for serving the Application and Notice of Hearing can be found in the Board’s brochure, Instructions for Landlords:  How to serve the Application and Notice of Hearing.

Tenant can dispute the application at the hearing

At the hearing, a landlord will have to prove that the tenant should be evicted.  The tenant can go to the hearing to explain why they should not be evicted, even if they have done something that is a reason for eviction.

Even though a landlord proves their case in an application to evict a tenant, the Board must consider all the circumstances of each case to decide whether or not the eviction should be refused or delayed.

Board Order

The decision

A Member of the Board will make a decision about the landlord’s application to end the tenancy and whether the tenant should be evicted or not.

The Member’s decision is always put in writing. This written decision is called an order.  The Board will mail a copy of the order to both the landlord and tenant, and their representatives, if any.

Only the Sheriff can evict a tenant

If a tenant doesn’t leave the rental unit by the termination date in the eviction order, a landlord cannot personally enforce the order (remove a tenant from a rental unit or change the locks).  See the section called Landlord cannot lock tenant out of the rental unit for more information.

An eviction order can only be enforced by the Court Enforcement Office (the “Sheriff’s Office”).  The Board does not enforce an order.

The landlord must file a copy of the Board order with the Sheriff’s Office to have the order enforced.  The Sheriff’s Office will charge the landlord a fee for the enforcement of the order.  Further information about enforcement can be obtained from the Sheriff’s Office.

For More Information

Other related publications

The Board also has brochures on these related topics:

• How a Tenant Can End Their Tenancy,
• Instructions for Landlords: How to Serve the Application and Notice of Hearing
• Important Information About Your Hearing

Contact the Landlord and Tenant Board

This brochure provides general information only.  For more information, or to obtain copies of the Board’s forms and publications, you can:

• call the Board at 416-645-8080 or toll-free at 1-888-332-3234, or
• visit your local Landlord and Tenant Board office.  A list of Board office locations can be found on our website, or you may call us at the numbers listed above.