TORONTO, March 21, 2007 -- In an open letter to Toronto Mayor David Miller, the Toronto Real Estate Board (TREB) has raised concerns about a possible home-buying tax in Toronto.
TREB’s letter provided Mayor David Miller with REALTORS’® initial input to a City discussion paper on potential new revenue sources. Of particular concern to TREB is the possibility of a Toronto land transfer tax, which would be levied on top of the existing provincial land transfer tax, meaning that Toronto homebuyers would be faced with paying this type of tax twice for the same transaction.
“Let’s call a spade a spade. A land transfer tax is a home-buying tax. It is a tax charged directly to homebuyers when they purchase a property, which is usually intended to offset costs for providing services directly related to real estate transactions. If the City intends to charge a land transfer tax just to raise additional revenue for general municipal services, is it fair to expect homebuyers to pay for services that the whole community benefits from?”, said Dorothy Mason, President of the Toronto Real Estate Board.
“If the City adopts a land transfer tax, Toronto homebuyers will be faced with a double whammy of land transfer taxes - a municipal land transfer tax and a provincial land transfer tax,” added Mason.
The provincial government already charges a land transfer tax on property transactions. For the average Toronto home, according to TREB’s statistics, the provincial land transfer tax payable is approximately $4200.
“If the City moves ahead with a second land transfer tax of 0.5%, as is being considered, average Toronto homebuyers could be faced with paying almost $1900 on top of the $4200 that they already have to pay for the existing provincial land transfer tax, money that could be spent on other expenses when purchasing a home such as appliances. That’s an additional 45% in land transfer tax. Even a 0.1% Toronto land transfer tax would represent almost a 10% increase in and transfer taxes. Also, with total closing costs (e.g. legal fees, land transfer tax) usually around 1.5% of a property’s selling price, a 0.5% Toronto land transfer tax would represent a 33% increase in closing costs”, said Mason.
TREB’s letter to Mayor Miller outlined specific concerns about the impact that a second land transfer tax would have for the City.
“Mayor Miller and all of City Council should realize that forcing homebuyers to pay a second land transfer tax will have implications for the City. It will make Toronto housing less affordable, and encourage homebuyers to choose to live outside of the City, where they only have to pay the land transfer tax once. This could mean more commuting, more traffic, and environmental impacts, like smog, for the GTA”, said Mason.
A copy of the open letter to Mayor Miller follows.
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-theart Multiple Listing Service designed exclusively for REALTORS. Serving more than 25,000 REALTORS® throughout the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board.
Source: Toronto Real Estate Board
Friday, March 30, 2007
Wednesday, March 21, 2007
Home sales stay steady
TORONTO, March 19, 2007 -- The Toronto Area resale housing market maintained a solid pace through the first half of March, Toronto Real Estate Board President Dorothy Mason announced today.
The first half of the month yielded 3,714 transactions, nearly on par with the 3,755 sales recorded in the same timeframe last year.
“The year has begun very well,” Mrs. Mason said. “The market hasn't lost any steam despite a very strong start, and to date, the sales pace for this year is still three per cent ahead of last year's pace.”
In Mimico / New Toronto (W06), a large increase in condominium activity and brisk detached home sales contributed to an overall sales increase of 54 per cent compared to mid-March of 2006.
East of Toronto in Ajax (E14), an increase in sales of detached homes and townhomes helped push overall sales 32 per cent higher than mid-March a year ago.
Detached homes were the most popular housing type in Thornhill (N02), as the area saw 22 per cent more overall transactions compared with the same timeframe last year.
The average price of a home rose in March, increasing two per cent to $367,531 over the $360,294 recorded during the first half of March 2006. It is also up two per cent over the $358,533 recorded during the same timeframe in February. The average time-on-market for a home was 31 days to mid-month, and the list-to-sale price ratio was 98%.
“Consumers are reaping the benefits of a strong economy, favourable interest rates and a very solid housing market,” Mrs. Mason said. “Right now is an excellent opportunity to take the plunge into a different home or get started in the market for the first time.”
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service designed exclusively for REALTORS®. Serving more than 24,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are now available on http://www.torontorealestateboard.com/find_a_home/open_house/index.htm
Source: Toronto Real Estate Board
The first half of the month yielded 3,714 transactions, nearly on par with the 3,755 sales recorded in the same timeframe last year.
“The year has begun very well,” Mrs. Mason said. “The market hasn't lost any steam despite a very strong start, and to date, the sales pace for this year is still three per cent ahead of last year's pace.”
In Mimico / New Toronto (W06), a large increase in condominium activity and brisk detached home sales contributed to an overall sales increase of 54 per cent compared to mid-March of 2006.
East of Toronto in Ajax (E14), an increase in sales of detached homes and townhomes helped push overall sales 32 per cent higher than mid-March a year ago.
Detached homes were the most popular housing type in Thornhill (N02), as the area saw 22 per cent more overall transactions compared with the same timeframe last year.
The average price of a home rose in March, increasing two per cent to $367,531 over the $360,294 recorded during the first half of March 2006. It is also up two per cent over the $358,533 recorded during the same timeframe in February. The average time-on-market for a home was 31 days to mid-month, and the list-to-sale price ratio was 98%.
“Consumers are reaping the benefits of a strong economy, favourable interest rates and a very solid housing market,” Mrs. Mason said. “Right now is an excellent opportunity to take the plunge into a different home or get started in the market for the first time.”
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service designed exclusively for REALTORS®. Serving more than 24,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are now available on http://www.torontorealestateboard.com/find_a_home/open_house/index.htm
Source: Toronto Real Estate Board
Tuesday, March 13, 2007
February stays right on track
TORONTO, March 6, 2007 -- Resale housing activity in the month of February was slightly higher than a year ago, Toronto Real Estate Board President Dorothy Mason announced today. A total of 6,772 transactions took place in the month, as compared to 6,756 in February 2006.
“Sales activity has been strong to begin the year,” Mrs. Mason said. “Results from the first two months show that so far 2007 is five per cent ahead of last year's pace.”
“The important thing is that we are seeing strong results on a consistent basis, which speaks volumes about the stability of the market,” Mrs. Mason added. “As we head into the most active part of the year, it's an excellent time to get into the market for the first time or make a switch to a different home.”
In Scarborough Town Centre / Woburn (E09), a jump in sales of detached homes pushed overall activity up 22 per cent compared to February 2006.
Strong condominium apartment sales in Mimico / New Toronto (W06) contributed to a 29 per cent increase in overall transactions compared to a year ago.
Central Toronto's Davisville neighbourhood (C10) saw 20 per cent more transactions than the same month a year ago, with strong sales among most housing types.
North of Toronto in Newmarket (N07), detached homes were the most popular type as transactions increased 32 per cent compared to last February.
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service designed exclusively for REALTORS®. Serving more than 24,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are now available on http://www.torontorealestateboard.com/find_a_home/open_house/index.htm
Source: Toronto Real Estate Board
“Sales activity has been strong to begin the year,” Mrs. Mason said. “Results from the first two months show that so far 2007 is five per cent ahead of last year's pace.”
“The important thing is that we are seeing strong results on a consistent basis, which speaks volumes about the stability of the market,” Mrs. Mason added. “As we head into the most active part of the year, it's an excellent time to get into the market for the first time or make a switch to a different home.”
In Scarborough Town Centre / Woburn (E09), a jump in sales of detached homes pushed overall activity up 22 per cent compared to February 2006.
Strong condominium apartment sales in Mimico / New Toronto (W06) contributed to a 29 per cent increase in overall transactions compared to a year ago.
Central Toronto's Davisville neighbourhood (C10) saw 20 per cent more transactions than the same month a year ago, with strong sales among most housing types.
North of Toronto in Newmarket (N07), detached homes were the most popular type as transactions increased 32 per cent compared to last February.
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service designed exclusively for REALTORS®. Serving more than 24,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are now available on http://www.torontorealestateboard.com/find_a_home/open_house/index.htm
Source: Toronto Real Estate Board
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