Tuesday, July 31, 2007

One Hot Summer!

July has started swiftly, with 3,947 sales to date, TREB President Donald Bentley announced today. This mid-month total is up 21 per cent over last July's 3,251 sales.
"While it is too early to speak of a July record (currently the record is 8,084 sales recorded in 2003), this month should certainly end as one of our best summer performances," said Mr. Bentley. "And in terms of year-to-date activity (54,457 sales), 2007 is 11 per cent ahead of 2006 (48,961 sales). It is also up 13 per cent over the 2005 figure (47,956 sales), and when 2005 was finished it produced an all time annual sales record."
While transactions continued at an accelerated pace despite the onset of Summer, price increases remained moderate. At $374,254, the average was up eight per cent over the first half of July 2006. The year-to-date average, at $373,572, was up five per cent over 2006's figure of $356,207.
Meanwhile, time-on-market came in at 31 days and the list-to-sale price ratio was 98 per cent.
In Oshawa (E16) sales rose 63 per cent over July 2006 due large to a large increase in the number of semi-detached houses sold.
Sales in Rexdale (W10) increased 97 per cent over last year due to a 133 per cent increase in transactions of detached homes.
North York Center (C14) saw a 57 per cent increase in sales based on large increases in both condo apartment and detached home sales.
Sales in Vaughan (N02) were up 68 per cent, with strong increases in almost all house types.
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a stateoftheart Multiple Listing Service. Its 23,739 listings resulted in May’s 11,146 sales. Serving more than 25,000 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./


Source: Toronto Real Estate Board

Tuesday, July 17, 2007

New Land Transfer Tax Delayed

Toronto Mayor David Miller suffered his biggest political defeat Monday as council narrowly voted to delay any decision on bringing in two controversial new taxes until at least October.
In a 23 to 22 vote, council decided that any decision on new taxes on land transfers and vehicle registration should wait until after the provincial election.
Miller dodged questions after the vote about whether this was a personal defeat, and instead warned massive service cuts and huge property tax increases are now likely.
"It's not been my style to create a crisis," he said. "But we've reached a point where the city's budget is not sustainable."
Coun. Case Ootes said the vote is a stark wake-up call to Miller that citizens want more control on spending at City Hall.
"He lost big today. And he better start listening to the people of this city. They're not happy with the way this place is run," he said.

Toronto Mayor David Miller suffered his biggest political defeat Monday as council narrowly voted to delay any decision on bringing in two controversial new taxes until at least October.
In a 23 to 22 vote, council decided that any decision on new taxes on land transfers and vehicle registration should wait until after the provincial election.
Miller dodged questions after the vote about whether this was a personal defeat, and instead warned massive service cuts and huge property tax increases are now likely.
"It's not been my style to create a crisis," he said. "But we've reached a point where the city's budget is not sustainable."
Coun. Case Ootes said the vote is a stark wake-up call to Miller that citizens want more control on spending at City Hall.
"He lost big today. And he better start listening to the people of this city. They're not happy with the way this place is run," he said.
Miller had argued that the new taxes were essential if the city is to prosper.
As debate got underway Monday on the controversial taxes, Miller told council the city must follow other cities such as New York, Berlin and Shanghai, and break away from dependence on property taxes.
"If we do not invest, this city of Toronto will be left behind," said Miller.
Admitting the taxes are not popular, Miller said if introducing them were easy, that would have been done already.
The measures are an annual vehicle registration fee of $60 for most passenger vehicles and $30 for motorcycles and a tax to match the provincial land transfer tax on house purchases. The taxes are expected to raise more than $365 million per year.
The house purchase tax would add over $4,000 to the cost of a $400,000 home.
Groups such as the Toronto Real Estate Board and the Canadian Federation of Independent Business have condemned the proposed plan, but the mayor and supporters say the taxes are needed to prevent either large service cuts or big property tax increases.
"This has struck a chord, so the members of council are getting lots of calls from the residents, and there's pure anger," Coun. Denzil Minnan-Wong told CBC News before the debate began.
"And on the other side is David Miller doing his arm twisting on the council floor."
The public viewing areas at City Hall were standing room only as the debate got underway Monday.

Source: www.cbc.ca

Wednesday, July 11, 2007

CREA forecast for 2007

New record for MLS® home sales expected again in 2007. National activity to rise 3.6% over last year.
OTTAWA – May 1, 2007 – Boosted by record activity levels in the first quarter,national MLS® home sales activity is expected to reach new heights again in2007, according to a new residential forecast prepared by The Canadian RealEstate Association.National home sales are forecast to rise by 3.6 per cent to 500,995 units in 2007,and will set new records in most provinces. Activity is forecast to edge slightlylower in 2008, but will remain high in all provinces.
The national MLS® residential average price is forecast to rise over the next twoyears. Resale housing markets will become more balanced in all provinces, butwill remain tightest in Western provinces where annual price increases will begreatest.
“Resale housing activity in the first quarter was far stronger than anybody hadanticipated,” said CREA Chief Economist Gregory Klump. “Record-breakingsales activity in the first three months of this year has forced The Canadian RealEstate Association to revise our forecast upward.”“Home buying sentiment remains strong in all regions, and new listings havebeen unable to keep pace with sales activity. The resale housing market willbecome more balanced as rising prices erode affordability and cause a gradualretreat in sales activity,” Klump said. “A strong job market and the continuation oflow interest rates will keep sales activity strong even as prices continue to rise.”
“Residential real estate markets across Canada remain healthy and active, and itis important to note that the negative factors weighing on U.S. home sales arelargely absent in Canada,” said CREA President Ann Bosley. “For local marketexpertise and sound advice, consumers should consult their REALTOR®.”
In British Columbia, sales activity and new listings recently rebounded in anumber of areas, including the Greater Vancouver, Fraser Valley, Okanagan andVictoria markets. While negotiations still favor the seller, the resale housingmarket is becoming more balanced and price increases have begun to moderate.That trend is forecast to continue.
In Alberta, sales and new listings set new records in the first quarter of 2007. Arecent spike in new listings caused the market to become more balanced inCalgary, Edmonton and elsewhere in the province. Price increases this year areforecast to be smaller than they were last year, but remain outsized in mostmarkets. In Saskatchewan, sales have been rising by more than new listings, andnegotiations heavily favor the seller. Prices are forecast to reach new heights inSaskatoon and Regina, the province’s two most active markets.
In Manitoba, a bigger rise in new listings than sales has caused the MLS®housing market to become more balanced, and price increases are beginning toshrink. That trend is forecast to continue, but negotiations will continue to favorthe seller.
In Ontario, a recent increase in sales activity caused the resale housing marketto tighten, although trends for sales activity and new listings vary widely betweenlocal markets. The market is forecast to become more balanced as sales activityedges lower and new listings inch higher in the second half of 2007 and in 2008.
In Quebec, sales activity in the first quarter rose in a number of major marketsand caused the resale housing market to tighten and price increases toaccelerate. A forecast increase in new listings will cause the market to becomemore balanced and price increases to shrink in the second half of the year and in2008.
In New Brunswick, sales activity surged in Saint John and Moncton, whichcaused the resale housing market to tighten in the first quarter. Sales activity isforecast to ease and contribute to a more balanced market, which will causeprice increases to become more modest.In Prince Edward Island, sales activity in the first quarter broke out of its holdingpattern that it had settled into over the past few years, while new listings trendedlower. Although the market tightened as a result, a year-over-year decline inaverage price during the first quarter suggests that entry-level buyers accountedfor much of the jump in sales activity. In keeping with the forecast trend in otherprovinces, sales activity in Prince Edward Island is forecast to retreat this yearbut remain strong and cause the market to become more balanced.
In Newfoundland, seasonally adjusted sales activity shattered all previousrecords in the first quarter. That caused the province’s resale housing market tobecome much tighter. The lack of an accompanying pick-up in price suggeststhat the recent increase in sales activity was fueled by lower-priced transactions.Sales activity is forecast to retreat as new listings gradually increase, leading to amore balanced market and modest price increases.


Source: The Canadian Real Estate Association

Sunday, July 08, 2007

REALTORS® launch WWW.NOHOMEBUYINGTAX.COM

TORONTO, July 5, 2007 -- Toronto’s REALTORS® have launched a web site (http://www.nohomebuyingtax.com/) to help the public calculate what the proposed Toronto land transfer tax will cost them and to easily allow the public to let Mayor Miller and City councillors know what they think.
“As REALTORS®, it’s our job to give information to the public. As soon as we tell them about the City’s proposal to charge a second and transfer tax they ask us what it will cost them and what they can do to stop this bad idea. Our new web site shows them the exact cost of the tax and allows them to easily email the Mayor and City Councillors,” said Donald Bentley, President of the Toronto Real Estate Board (TREB).
The http://www.nohomebuyingtax.com/ site includes an easy-to-use calculator that tells the user exactly how much land transfer tax they now owe the province and what they will owe the City. In addition, it includes quick facts and easy options for the public to take action.
Even prior to launching the web site, Toronto’s REALTORS® have been communicating with the public to inform them of the City’s proposal. The public is very opposed to this tax and their reaction has been overwhelming.
“We are aware of over 1,000 emails that have been sent to Mayor Miller and all City Councillors, and most of those have come from the public in just the last week, after the City’s Executive Committee decided to push forward with this misguided idea. The public isspeaking; hopefully, City Hall won’t ignore them,” said Bentley.
The emails that have already been sent make it clear that the public believes that the City is headed in the wrong direction.
“Nobody likes taxes, but the public has been adamant that a second land transfer tax is not the right approach to addressing the City’s fiscal challenges because it could make the dream of home ownership more difficult to achieve for home buyers, while impactingproperty values for some current home owners. Generally, the public believes that this tax is unfair, that the City hasn’t justified it, and that the City should first focus on getting its own house in order,” Bentley added.
TREB notes that concern is being expressed by both people looking to buy a home and those who already own a home.
“Even though this tax will be paid by home buyers, current home owners understand that it could make their properties less marketable compared to homes in other municipalities where there is only one land transfer tax. This could hurt their property’s value, whichwould impact seniors the most because many of them rely on their property’s value to help with their retirement”, said Bentley.
TREB points out that the public has also indicated that, instead of focusing on new taxes, the City should continue to make fairer funding from the senior levels of government a priority.
“REALTORS® support a fair deal for Toronto, but City Council is putting the cart before the horse. Charging new taxes will simply let the senior governments off the hook”, said Bentley.
TREB plans to continue opposing the implementation of a second land transfer tax. For more info click here.
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a stateoftheart Multiple Listing Service. Its 23,739 listings resulted in May’s 11,146 sales. Serving more than 25,000 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/consumer_info/find_a_home/open_house/index.htm

Source: Toronto Real Estate Board

Summer market begins with a bang

TORONTO, July 6th, 2007-- In June, the Toronto Area resale housing market was nearly 20 per cent more active than a year ago, Toronto Real Estate Board President Donald Bentley announced today. The 10,451 sales recorded in the month were also just shy of the 11,146 sales that made May TREB's most active single month ever.
"This market is very healthy and shows no signs of letting up," Mr. Bentley said. "The strong spring we've seen is carrying through to the summer months, and that has helped to push this year's total activity past 2006 by nearly 11 per cent."
Toronto's Danforth / Woodbine Heights area (E03) saw overall transactions jump by 32 per cent compared to last June, with gains across most housing types.
Strong sales of condominium apartments and town homes in Mississauga's Northwest Cooksville (W15) area contributed to an overall increase in activity of 57 per cent compared to June 2006.
Detached home sales in Bayview / Hillcrest Village (C15) nearly doubled as overall transactions increased by 39 per cent compared to June of last year. Just north of the city, Richmond Hill's southern portion (N03) saw a 48 per cent increase in transactions compared to the same timeframe one year ago.
"The current market is exceeding expectations because it has very solid fundamentals to build upon," TREB's President added. "We have seen good returns on investment, and a strong economy and low borrowing costs have kept homes accessible. It's a great time to be in the market."
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a stateoftheart Multiple Listing Service. Its 23,739 listings resulted in May’s 11,146 sales. Serving more than 25,000 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/consumer_info/find_a_home/open_house/index.htm

Source: Toronto Real Estate Board