Bank of Canada is holding the interest rates steady for now, which is a good news for the real estate market. It is anticipated that the rates will remain low as long as the crisis in the Euro countries lasts.

The recession in Europe is deeper than what was forecast in October, and economic conditions in Canada are not as good as they appeared to be a few months ago. But inflation in Canada is moderating with the cost of food and fuel decreasing slowly. Bank of Canada has adopted a "wait and see" policy, and would not rule out more stimulus if necessary.

Real estate sales in Toronto have been busy in July and August, quite unlike last summer, when sales in August in the central districts were particularly sluggish.

Typically real estate sales are expected to speed up in September, and the media are quick to point out that this year's September sales are not as good as everyone has hoped. The following table shows the sales of freehold homes in Toronto in July, August and first half of September, compared to new listings taken in the same periods.

Comparatively speaking, real estate sales slowed down somewhat instead of speeding up, while the number of new listings increased substantially.

But if we look at the same statistics from 2010, we can see that the home sales in September were similar in numbers to those recorded this year. Tha main difference lies in the levels of home sales in July and August 2010, and in a larger number of new listings coming for sale this September.

The largest difference between these two periods lies in the number of sales in August in central districts (2011 saw 46% more sales in August) and west districts (31% more sales in August 2011), and in the number of new listings in September in the central districts (26.7% more) and in the east districts (10.1% more). In the west districts the number of new freehold listings this September is actually lower than in the same period last year.

It should be noted that, although the number of sold homes is not at the level of sales from July and August, the number of properties sold above the listing price increased - see the table below, taking into account that September results cover only half the month.

Mayor Ford promised, if elected, to end the Toronto Land Transfer Tax. That tax targets home buyers in Toronto, almost doubling the amount of tax levied on property purchase.

Unfortunately, some of our newly elected councillors would prefer to maintain the status quo and keep the tax.

Please take action. Visit the website created to oppose the tax, send an e-mail to Mayor and City Council, and encourage your contacts to do the same.

When purchasing a home, it is important to be sure that it can be insured. Without insurance, mortgage lenders will not release the funds to close the purchase.

While many new homes are being built, city core contains a large proportion of older homes, and many of them are not updated. Insurance companies are concerned about rising costs, and cautious about home safety.

Over the last years more and more home buyers had to cover unexpected costs to upgrade their homes to be able to obtain home insurance. Typical upgrades include electrical wiring, removal of old oil tanks, replacement of old furnace, or a new roof. Sometimes the time period allowed for such upgrades is as short as 30 days.

Home insurance is generally intended to help owners cope with financial consequences of unpredictable events. Predictable or preventable events, like freezing of indoor pipes if the heat has not been turned on, are not covered. It is often necessary to obtain insurance for an older home from insurance company specializing in such properties, at higher premiums.

When making an offer on an older home with potential insurance issues, it is wise to make an offer conditional on being able to secure home insurance.

When considering buying a condominium unit, it is important to check the common areas and ask questions. Knowing answers to the following questions will help you decide how good is the building.

• How well kept are the common areas?
• Is the concierge polite, friendly and helpful? The concierge usually has a lot of useful information - what type of people live in the building, whether many of them are tenents and not owners, if there are any problems, and they may even know how many units are in the building and how old it is.
• What is the ratio of resident owners to tenants? Resident owners care about the building and are more likely to ensure that it is well kept, well maintained, and renovated. Tenants live there only temporarily, and have no financial interest in the state of the condominium. Residents owners tend to be more active in condo affairs.
• What view does the condominium unit have, and is it likely to change? If there is a vacant lot or a parking lot near the building it is likely that at some point in the future a building might be erected there.
• What types of noise problems exist? It might be a highway, airport, or a busy street, or the unit might be located next to a garbage chute. Air conditioning units and other machinery are typically located on the roof - some penthouses might experience noise problems.