Thursday, August 30, 2007

Torontonians deserve thoughtful and fair approach to City’s financial challenges: Toronto REALTORS®

In response to recent City of Toronto announcements regarding theCity’s fiscal situation, Toronto’s REALTORS® are calling on Mayor Miller, City Councillors andprovincial politicians to consider thoughtful and fair options preferred by Torontonians, instead of justnew taxation or cuts to core services.
REALTORS® have been watching the actions of City and Provincial politicians since Toronto CityCouncil decided to defer consideration of a second land transfer tax, which would mean a 100 per centincrease, or over $4,000 in extra costs for the average Toronto home buyer, if approved.
“The public has been clear that a second land transfer tax is simply not a fair way to address the City’sbudget shortfall. It discriminates against homebuyers by forcing them to shoulder a disproportionate andunfair burden,” said Donald Bentley, President of the Toronto Real Estate Board (TREB). “The secondland transfer tax should be taken off the table immediately and the public should be given thoughtfulchoices instead.”
TREB points out that a second land transfer tax will impact average people. According to the CanadaMortgage and Housing Corporation, in Toronto’s condominium market, where most investment activityoccurs, approximately 80 per cent of units are owned by people who live in them. Investment activity iseven lower when all residences are considered.
“REALTORS® know first hand that the Toronto real estate market is dominated by people buyinghomes to live in them, not by investors or speculators,” added Bentley. “A second land transfer tax willbe felt the most by real, hard-working, people with the dream of home ownership. In today’s market, itis not uncommon for these people to move every five years or so; they will feel the sting of the secondland transfer tax many times”.
REALTORS® believe that a fair approach to addressing Toronto’s fiscal situation should includeimmediate and adequate provincial action, prioritizing the City’s core services, and making sureservices are delivered efficiently.
“The choice isn’t simply between new taxes or cuts to core services. The public knows better and theydeserve better. There are other options. The City has to get its house in order and all provincialpoliticians have to step up to the plate with firm, adequate and immediate commitments,” said Bentley.“The recent announcements from the Provincial Party leaders regarding municipal finances show thatpublic opinion is having an impact, but the public is expecting and demanding more.”
While TREB believes that provincial action is a key part of the solution, REALTORS® are also callingfor an impartial third-party review of the City’s budget so that the public can have an accurateunderstanding of the City’s fiscal situation.
“The public has the right to demand openness so that they can truly understand what makes up theCity’s shortfall. The City shouldn’t be hesitant to ask for a second opinion on where savings can befound and other options,” added Bentley.
REALTORS® are also questioning the City’s current approach to cost containment, noting that theCity’s Deputy City Manager and Chief Financial Officer is currently in the process of determining whatthe City’s core services are.
“Frankly, it’s shocking that the City would choose to pursue new taxes before identifying discretionaryservices. The public know their priorities and they expect the City to focus their existing tax dollars onthose core services, while finding savings in discretionary areas. The City’s recent cost containmentefforts seem to have ignored various options that may be preferred by the public”, said Bentley.
TREB plans to continue opposing the unfair second land transfer tax. More information is available a thttp://www.nohomebuyingtax.com/.
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethicsand share a state-of-the-art Multiple Listing Service. Serving more than 25,000 Members in theGreater 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

Friday, August 17, 2007

August Prepares to Roar into Fall Market

Resale home transactions reached unprecedented heights in the first half of August, up 17 per cent from the same period in 2006, Toronto Real Estate Board President Donald Bentley announced today. So far this month 3,838 properties have sold with an average price of $355,829. “The market has shown tremendous strength in recent months,” said Mr. Bentley. “Given that August sales have been brisk thus far and that the past four consecutive months have all set records, we are looking forward to a robust fall market.” The rate at which transactions are occurring has increased over 2006 as well. On average, properties are currently on the market 32 days before selling as compared to 38 Days during the first half of last August. Sales were particularly swift in the neighborhood of West Agincourt (E05) where there was an overall increase of 71 per cent in sales compared to mid-August 2006 as detached home transactions doubled. In Rexdale, the W10 district showed a 54 per cent increase in overall sales compared to mid-August a year ago due to large increases in both condominium apartment and detached house sales. In the Downtown Core (C01), 27 per cent more transactions took place overall compared to the same period last year as a result of a 34 per cent increase in condominium apartment sales in August 2007. Detached and condominium apartment sales in South Richmond Hill (N03) fueled an overall increased of 41 per cent as compared to the same timeframe a year ago. Mr. Bentley offered one word of caution with respect to the market outlook, noting that the potential for a second land transfer tax in Toronto could be a wild card. “The health of the current market is good news for Toronto’s economy. We hope that the City of Toronto doesn’t jeopardize this market by imposing a second land transfer tax on home buyers,” said Mr. Bentley. To learn more about this issue visit www.nohomebuyingtax.com

Serving more than 26,000 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 www.TorontoRealEstateBoard.com.

Source: Toronto Real Estate Board

Tuesday, August 14, 2007

Canada's housing market cooling

Canadian housing starts fell 4.3 per cent in July to miss estimates while new home prices rose at a slower pace than in the prior month, suggesting a steady cooling of the domestic housing market.
July housing starts dropped to a seasonally adjusted annualized rate of 215,600 units from a downwardly revised 225,300 units in June, Canada Mortgage and Housing Corp. said Thursday.
That fell short of analyst expectations for 220,000 units.
Data from Statistics Canada also showed the price of new houses rose more moderately in June, though demand was brisk in the Prairie provinces.
“The Canadian housing market is cooling, but at a steady pace, unlike its U.S. counterpart,” Jennifer Lee, an economist at BMO Capital Markets wrote in a note. “Today's pair of housing indicators can attest to that.”
But Lee said the domestic market remains in “strong shape” as the level of housing starts continues to hover within the 200,000-250,000 range it has occupied for the last four and a half years.
Urban single-family starts fell 2.7 per cent to 89,700 units, while urban multiples — condominiums and apartments — dropped 8.4 per cent to an annual rate of 92,100 units.
Rural starts in July were estimated at an annual rate of 33,800 units, up from 32,600 in June.
“The lower level of housing starts this month is consistent with our forecast of a gradual easing in the pace of new home construction in 2007 caused by rising prices and slightly higher mortgage rates,” CMHC's chief economist, Bob Dugan, said in a statement.
The Canadian dollar dropped to 93.98 (U.S.) following the report from pre-data levels around 94.59 cents. It has since recovered all of the post-data losses.
The annual increase in new housing prices slowed for the eighth straight month, easing to 7.8 per cent in June from 8.6 per cent in May, while the month-on-month increase fell to 0.7 per cent in June from 1.1 per cent in May.
The Bank of Canada watches housing prices as indicator of whether the economy is overheating.
“All said, the general cooling in home price appreciation is welcome news on the inflation front, as home prices have been largely responsible for the core inflation rate remaining above the Bank of Canada's target rate of 2 per cent for almost a year now,” Pascal Gauthier, an economist at TD Economics, said in a note.
The biggest increases in recent years have been in the main oil province of Alberta, but annual increases there have retreated to 14.7 per cent in Calgary and 31.9 per cent in Edmonton (down from a high of 42.8 per cent in November).
However, spillover into less-populous Saskatchewan and Manitoba has enlivened property markets there.
In Saskatchewan, Saskatoon's new housing prices set a record annual increase of 48.4 per cent — prices jumped 8.8 per cent in just one month — and Regina's annual increase was a record 22.5 per cent.
In Manitoba, Winnipeg saw prices climb by 11.5 per cent from a year earlier.

Source: Reuters News

Tuesday, August 07, 2007

Resale market shows strongest summer performance !

Last month, the local resale market was 26 per cent more active than during the same time in 2006, recording a July record 8,912 sales, TREB President Donald Bentley announced today.
"Currently, year-to-date transactions stand at 59,339, up 13 per cent over the first seven months of last year," Mr. Bentley said. "And with June and July both setting records, we are now seeing the strongest summer performance by our local resale market since records have been kept." Toronto's Riverdale area (E01) saw a 73 per cent increase in transactions over June 2006, fueled by increases in almost every house type.
Strong sales of detached homes and condominium apartments in the South Humber part of Etobicoke (W07) contributed to a 116 per cent increase in total transactions over the same time last year. A large increase in condominium apartment sales was responsible for a 40 per cent increase in total sales for North York (C14). Transactions in Richmond Hill (N04) increased 77 per cent over July 2006, due to a 100 per cent increase in attached/row-house sales and strong performances in most other house types.
"The market is building on some very strong economic fundamentals," noted the TREB President. "And low borrowing costs have kept homes within reach of a broad segment of the population."
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