Wednesday, December 24, 2008

Greater Toronto Home Resales at 1,500 in Mid December

Greater Toronto REALTORS® reported 1,487 resale transactions during the first half of December, from 2,868 sales recorded in the same period a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.


The average price of a home in the Greater Toronto Area is currently $360,652. This compares to an average of $404,707 recorded during the first half of December 2007 and to an average of $343,048 recorded during the same period in 2006.


“Keeping today’s market statistics in perspective, MLS® statistics confirm that over the last 10 years the price of homes has increased in value. What this means for the consumer is that real estate continues to hold its value and is a solid choice for long-term investments,” said Ms. O’Neill.


In the 416 area, 619 transactions were recorded during the first half of this month, from 1,402 sales that took place during the same timeframe a year ago.


The average price in the 416 area is currently $382,759, from an average of $450,731 a year ago, and $367,650 recorded in the first half of December 2006.


In the 905 region 868 homes changed hands in the first two weeks of this month, from 1,466 transactions that took place in the first half of December 2007.


The 905 region’s current average price is $344,887 from an average of $360,691 recorded during the same timeframe a year ago and $325,477 recorded at mid-December 2006.


“The recent C.D. Howe land transfer tax study confirms REALTORS’® concerns that the second LTT imposed on homebuyers in the City of Toronto has indeed contributed to the economic conditions in the GTA,” added Ms. O’Neill.


There are currently 24,708 listings on the TorontoMLS system, from 17,027 a year ago. The average number of days a home now remains on the market is 43, as compared to 33 days a year ago. Sellers are achieving 96 per cent of their listing price, as compared to 98 per cent a year ago.


“Location, price and your own personal financial and family situation all play an important role when considering a purchase,” said Ms. O’Neill. “REALTORS® can provide you with information about neighbourhoods, school districts and realistic pricing because of their vast knowledge of the local community.”

This mid month release does not provide a year in review analysis. A summary of activity for all of 2008 including the month of December will be provided in the January 2009 Market Watch Report.

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. Serving over 28,000 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, December 16, 2008

Toronto's condo boom is heading for a bust

A prominent Toronto housing economist is warning of an impending chill in the city's overheated condominium market.

The record number of units set for completion in 2009 and beyond will drive down housing prices and cause vacancy rates to go up as some condos sit empty.

By the end of September, there were 33,919 condos under construction in the Toronto metropolitan area – more than three times the city's annual average – said economist Will Dunning in a report on the rental and condo markets.

"This very large pending inventory is setting the stage for a substantial correction," Dunning said in an interview yesterday.

The warning comes on the heels of figures yesterday showing sales of existing homes in Canada continued to slide in the year's fourth quarter. Declines were steep amid the lowest level of monthly activity in almost eight years as investors worry about the faltering Canadian economy.

"In the short term, condos are the most vulnerable aspect of the market," said CIBC World Markets senior economist Benjamin Tal. "I think there is a lot of oversupply, especially in cities such as Toronto and Vancouver."

Already, some prominent developers have warned some condo projects being marketed may not make it to completion. In a tight credit market, as falling sales hit the new home market, speculators and investors take cover.

Toronto condominium starts are normally in the 10,000 to 12,000 range annually, but a bottleneck in construction from record sales in prior years has a significant number of units still to be completed, Dunning said.

Many of those units were bought by finicky investors who are quick to exit the market if they don't get the returns they expected. Analysts say 30 per cent to 50 per cent of sales in certain buildings were to such investors, with some already set to exit the market.

As a result, the number of condos listed for sale in central Toronto is already up a stunning 75 per cent in November from those on sale a year earlier, according to Dunning.

"It appears that this process – excess supply in the condo sector and owners acting to sell the units – may be underway already."

The large supply of condos will affect the apartment rental market, Dunning said, as units now under construction become available for occupancy; in effect, "With the weaker economy, the supply will exceed the need."

The Canada Mortgage and Housing Corporation reported last week the vacancy rate in the Toronto area fell sharply to 2 per cent from 3.2 per cent a year earlier, but Dunning said the supply of new condos in the coming year will keep rates from dropping further, and will likely cause vacancy rates to rise.

So far there haven't been any catastrophic failures in the Toronto area, although one key project, MintoUrban Communities Inc.'s 300-unit Minto King West site, is on hold because of slow sales.

The developer is expected to break the project into two smaller buildings.

First-time buyer Janet Chang, 26, said she decided to hold off on buying a condo in downtown Toronto this year because of the uncertain economy.

"It's tough having to live with your parents for another year, but the last thing you want to is to lose your equity in a condo," said Chang, an accountant.

Before the advent of the economic meltdown in the United States at the beginning of the fourth quarter, new condo prices in the Toronto area were holding up well.

Prices for new condos in the third quarter were up by 2.5 per cent over the prior quarter, or about $406 per square foot, according to market research firm Urbanation. Since then, many developers have slashed prices off their suites and added incentives such as free televisions and even a new car over the past few months.

In 2006 the average condo price in Toronto was $239,816.

Meanwhile, there was more dismal news for the national real estate market as seasonally adjusted sales for November numbered 27,743 units, according to figures released by the Canadian Real Estate Association.

Sales were down 12.3 per cent on a seasonally adjusted month over month basis, and a far steeper 42 per cent unadjusted compared with November 2007.

The national average price of a home was down 9.8 per cent to $280,880, or more than $30,000 less than a year ago.

"The report underscores that the Canadian housing correction continued in earnest," said Millan Mulraine, economics strategist for TD Securities.

British Columbia, Alberta and Ontario were the three provinces reflecting the greatest decreases, said the realtor association.

"National sales activity and price trends will continue reflecting increased cautiousness on the part of lenders and buyers as the economy works its way through and out of the recession," said the real estate association's chief economist Gregory Klump.

In cities such as Toronto, sales of existing homes plunged by 50 per cent in November, the biggest decline since April 1989 when sales dropped to 54 per cent.


Source: Tony Wong, Toronto Star

Thursday, December 11, 2008

Toronto Land Transfer Tax Costs City’s Economy $170 million

Supported by a study on the impact of the Toronto Land Transfer Tax,
recently authored by the C.D. Howe Institute and two University of Toronto Economics Professors,Greater Toronto REALTORS® are renewing calls for this tax to be rolled back. See complete study

“The housing sector is one of the most significant parts of Toronto’s economy,” said Maureen O’Neill, President of the Toronto Real Estate Board (TREB). “Unfortunately, the study prepared jointly by the C.D. Howe Institute and Economics Professors from the University of Toronto shows that the Toronto Land Transfer Tax has had a negative economic impact, which TREB estimates to be $170million in 2008.”

The study found that the Toronto Land Transfer Tax, which costs average Toronto homebuyers approximately $4,000 in addition to a similar amount for the provincial Land Transfer Tax, has reduced sales of re-sale single-family homes (condominiums not included in study) by 16 per cent, which means approximately 3,500 lost re-sale transactions in the first year of the tax. If condominiums are included, REALTORS® estimate that the impact could be in excess of 5,000 lost re-sale transactions in the first year of the tax.

A separate recent study, conducted by Altus Clayton for the Canadian Real Estate Association,determined that every re-sale housing transaction in Ontario generates approximately $33,425 in economic spin-off activity on things like renovations, furniture, and appliances. This means that losing 5,000 re-sale housing transactions because of the Toronto Land Transfer Tax costs the City’s economy approximately $170 million in consumer spending.

“When people buy a home, they usually spend thousands of dollars on related things like renovations,furniture, and appliances. Thousands of Toronto jobs depend on this spending,” said O’Neill. “Any City policy that impacts housing sales has a direct impact on the City’s economy and jobs.”

With the City currently preparing a recommended operating budget for 2009, TREB is calling on City Council to roll back the Toronto Land Transfer Tax.

“REALTORS® have been clear that we believe that the Toronto Land Transfer Tax is unfair and now a study by respected economists is validating that view. Not only is this tax unfair to home buyers and sellers, but also to the thousands of people whose jobs depend on the housing sector,” said O’Neill. “City Council can, and should, show leadership by rolling back the Toronto Land Transfer Tax.”

REALTORS® are looking forward to opportunities to provide input to the City’s 2009 Operating Budget.

Greater 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. Serving over 28,000 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, December 09, 2008

Mayor's land-transfer tax helped sink Toronto real estate market, study says

Amid a sinking Toronto real-estate market, Mayor David Miller's controversial new land-transfer tax is to blame for a significant chunk of falling sales and house prices, a study released by the C.D. Howe Institute today concludes.

According to the study, Mr. Miller's tax – a levy of up to 2 per cent on top of the province's existing levy – is responsible for a 16 per cent drop in sales and a 1.5 per cent drop in house prices in the city compared to its suburbs.

City finance officials had pledged that the new tax would have little effect on the city's real estate market before it was implemented in February. But the C.D. Howe study, called Sand in the Gears, concludes that the levy actually was to blame for two-thirds of the drop in the number of houses sold in Toronto from February, when the tax was implemented, until August, when the real estate market's slide began to accelerate.

“The evidence really suggests a very large impact,” C.D. Howe Institute policy analyst Benjamin Dachis said in an interview. “I'll let the evidence speak for itself.”

The study says the new tax, implemented after months of political battles at city hall, can be blamed for an average $6,400 reduction to the price of a Toronto home, and has forced some homeowners to stay put instead of move.

In order to isolate the effect of the new tax from the rest of the winds hitting the real estate market, the study looked at the three kilometres of real estate on either side of Toronto's border with Peel, York and Durham Regions, where no new tax exists, from February to August. It found a deeper slide inside Toronto, where the new tax applies, than outside.

The new land-transfer tax, and a new tax for automobile registrations, caused a months-long political battle at city hall after council narrowly voted in July 2007 to delay the new taxes and Mr. Miller charged that the move put the city in a financial crisis. The new taxes were later approved in October.

Von Palmer, a spokesman for the Toronto Real Estate Board, said the study shows his group's warnings against the tax were right, and urged the city to repeal the tax.

"This validates what we've been telling people," Mr. Palmer said in an interview. "... The reality is that it has hurt the market."

City Councillor Shelley Carroll, the mayor's budget chief, said the city had anticipated some effect on the market but that it should stabilize after at least a year. She added that the market was artificially inflated in the run-up to the implementation of the tax as some rushed to buy a home before it took effect. (The study's authors say they took this factor into account in their analysis.)

"The ebb and flow of the market that's caused by the land-transfer tax was not unanticipated," Ms. Carroll said.

Ms. Carroll seized on the report's suggestion in the report that an 8 per cent increase to the regular property tax would have been preferable to the land-transfer tax. She said such a move would have seen seniors on fixed incomes forced out of their homes, while the city's land-transfer tax was meant to keep property tax hikes lower.

Taxing the sale of a home means "you look for an up-front one-time investment, only from those who can afford it, when they can afford it," Ms. Carroll said.


Source: by Jeff Gray, Globe and Mail

Thursday, December 04, 2008

Over 3,600 Greater Toronto Area Resale Housing Sales in November

Greater Toronto REALTORS® recorded 3,640 transactions last month, from 7,313 sales in November 2007, Toronto Real Estate Board President Maureen O’Neill announced today.

Year-to-date sales figures for the Greater Toronto Area show 72,086 transactions in 2008, from 88,695 sales recorded in the same January to November period a year ago. By contrast, the 2008 year-to-date average price in the GTA is $379,489, from $375,445 in 2007.

“Its important for the public to understand that while sales activity has moderated in 2008, due to current economic conditions, the average price of homes has increased from 2006 still making real estate a solid long term investment,” said O’Neill.

In the 416 area, 1,523 transactions took place last month, from 3,426 sales recorded in November 2007. From a year-to-date perspective, there have been 28,806 sales in the 416 area this year, from 36,804 transactions a year ago.

In the 905 Region 2,117 homes changed hands last month, from November 2007’s 3,887 sales. The 905 Region’s year-to-date figures show 43,280 transactions this year, from 51,891 sales recorded during the same period in 2007.

“Homeownership in the Greater Toronto Area continues to be an affordable, stable and secure investment,” said Ms. O’Neill. “Home buyers and sellers should be confident about their bricks and mortar investment which provides shelter and a place to raise a family.”

“Home prices are affordable, interest rates are at historical low levels and the supply of homes for sale is good providing additional reasons for buyers thinking of entering the market,” added O’Neill.

The average price of a home in the GTA last month was $368,582, from $393,747 noted in November 2007. In November 2006 the average price was recorded at $355,727.

In the 416 area, last month’s average price was $390,225, from $433,859 noted in November 2007. The average price recorded in November 2006 was $381,188. From a year-to-date perspective the 2008 average price in the 416 area is $411,155, from last year’s $411,640.

In the 905 Region, the average price recorded last month was $353,012, from $358,391 recorded in November of 2007. In November 2006 the average price was $335,522. The year-to-date average price in the 905 Region this year is $359,245, from $349,774 in 2007.

The average number of days a home currently remains on the market in the GTA is 41, from an average of 32 days last November. There are currently 27,037 homes listed on the TorontoMLS system compared to 18,309 available properties in November 2007.

“While homeownership offers immediate benefits and long term value by way of equity, it also provides tax benefits over time,” said Ms. O’Neill. “If you bought a house five years ago, it would be worth more than 20 per cent more today.”

“As REALTORS®, we help build communities and will continue to do so even during challenging economic times,” added Ms. O’Neill. “It’s important to consult with a REALTOR® to get accurate local market information.”


Greater 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. Serving over 28,000 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, December 02, 2008

Greater Toronto Resale Housing at 2,000 Sales in Mid-November

Greater Toronto REALTORS® recorded 1,991 resale transactions during the first half of November 2008 from 3,544 sales recorded during the same period a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.


The Greater Toronto Area year-to-date figures show 70,474 sales in 2008 from 84,994 recorded during the same period in 2007. The year-to-date average price was recorded at $380,470 in 2008 from $374,678 in 2007.


In the 416 area, 830 homes changed hands in the first two weeks of November from 1,643 transactions recorded during the same time frame a year ago. The year-to-date figures show 28,126 compared to 35,045 recorded in 2007.
In the 905 Region there were 1,161 sales during the first half of the month from the 1,901 transactions recorded at mid-November 2007. The year-to-date figures show 42,348 compared to 49,949 recorded in 2007.


It’s particularly important to interpret the 416 area statistics in context given the market surge we saw a year ago when buyers moved to avoid the new Toronto Land Transfer Tax,” said Ms. O’Neill. “At mid- month a year ago, transactions in the 416 area had increased 24 per cent over the same period in 2006.”


In the first two weeks of November 2008, the average price of a home in the GTA was $375,712 compared to $393,084 recorded a year ago.

In the 416 area, homes are currently selling for an average of $400,305 from the $432,972 average recorded during the same time period in 2007. An average price of $383,029 was recorded in the first two weeks of November 2006.


In the 905 Region the average price is currently $358,130 from $358,610 recorded a year ago. During the


first half of November 2006 the average price was recorded at $336,576.


“As an investment, a home not only offers shelter and an environment in which life’s most important moments are shared, but also offers financial appreciation in the long term, said Ms. O’Neill.”


Currently there are 27,562 homes listed for sale on the TorontoMLS system compared to a year ago when 20,173 properties were available. As such, the average time homes are remaining on the market is 41 days from 31 days in 2007. Sellers are currently achieving 97 per cent of their list price.


Greater 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. Serving over 28,000 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, October 21, 2008

Ottawa may make millions on CMHC plan for banks

The federal government stands to make hundreds of millions of dollars off of its new program to buy mortgages from banks.

The government today is launching the first purchase of $5-billion of mortgages from Canada's banks as part of a program to buy $25-billion of home loans from banks to give them cash to make new loans.

It is taking advantage of its ability to borrow cheaply to buy the mortgages, which will pay a higher rate of interest. The difference will be the government's profit.

Ottawa doesn't have a forecast of its likely take, but given current market prices and the guidance that the Finance Department has provided to bankers on the prices to be paid, the federal government may expect to earn about $250-million a year. That could rise to $1-billion if the government increases the size of the mortgage purchases to $100-billion, as some in the banking sector suggest could be done.

Those potential profits are significant at a time when Ottawa projects its surplus will fall to $1.3-billion for the year ended March, 2010.

While government officials say any profit isn't the point, earning money on the program does drive home the message that Ottawa has been sending: The program isn't a bailout at taxpayers' expense.

“The goal is not to make money for the government,” said a Finance Department official who spoke on condition of anonymity. While the program is an efficient way to support lending in Canada by providing reliable funding to banks, it is important that the banks pay a competitive rate to tap into the funds, the official said.

“This is not a subsidy for banks.”

The credit crunch, which first erupted more than a year ago, has made it more expensive for banks to raise long-term funding to finance mortgages.

Finance Minister Jim Flaherty announced the initiative last Friday to have government-owned Canada Mortgage and Housing Corp. buy up loans from banks. The loans are solid, but by taking them off bank balance sheets in return for cash, the banks will theoretically be able to make new loans.

Ottawa has committed to buy up to $25-billion in total, but has not yet set the dates for the remaining purchases. Participants expect the government to carry out four more purchases of $5-billion each.

The purchases will be conducted by so-called reverse auction, where banks will essentially have to tell the government how much they will pay in the form of interest to move the loans off their balance sheets. The government will accept the most profitable bids.

Mortgage lenders can submit up to three bids for various amounts, but no one lender can sell more than $1.25-billion of loans to the government.

The government will establish a minimum acceptable yield, or interest rate. That minimum is expected to be above the yield on comparable five-year Canada Mortgage Bonds that CMHC sells to investors.

Banks are expected to place bids somewhere above the minimum, with more-stressed banks giving the government a better deal as they try to ensure they can raise cash.

John Manley, a former deputy prime minister and finance minister, said he was surprised Ottawa didn't pick up the program earlier.

“They make money on it, it increases liquidity in the system – why don't you answer the phone when people suggest things?” he said, pointing out that banks had been suggesting the program for some time.

One bank chief executive officer said that, even as the financial crisis worsens, Canada is in a unique position where it can establish programs to ease the flow of funds that don't put taxpayers on the hook. A shortage of government bonds and an excess of mortgages sitting on the banks' books make this an easy program to increase if necessary, he said.


Source: TARA PERKINS AND BOYD ERMAN, Globe and Mail

Monday, October 20, 2008

Changing GTA Resale Housing Market Reflects Economic Times

Activity in the Greater Toronto Area resale housing market
moderated considerably during the first half of October with 2,700 homes changing hands,
Toronto Real Estate Board President Maureen O’Neill announced today.

Sales volumes in the GTA decreased 18 per cent compared to the first half of October 2007,
when 3,297 transactions were recorded and are down 10 per cent compared to the same period
in 2006 when 3,007 sales took place.

In the City of Toronto 1,140 sales took place in the first half of this month. This represents a 21
per cent decline from the 1,446 sales that took place in the same period a year ago and a 13 per
cent decrease from the 1,312 transactions recorded in the first half of October 2006.

In the 905 Region there were 1,560 sales in the first two weeks of this month, a 16 per cent
decrease from the 1,851 transactions that took place during the same timeframe in 2007 and
down eight per cent from the 1,695 homes sold during the first half of October 2006.

House prices declined throughout the GTA during the first half of the month. The average price
of a GTA home is currently $353,772, down 11 per cent from $399,013 recorded the comparable
period in 2007.

In the City of Toronto the current average price $375,804, a 15 per cent decrease from the
$441,878 average recorded at mid-October 2007.

In the 905 Region the average price of a home is currently $337,671. This represents an eight
per cent decline from the $365,527 average recorded during the first half of October 2007.
With 27,559 properties currently listed on the TorontoMLS system, there is now 30 per cent
more available stock from which to choose as compared to a year ago when 21,182 homes were
listed.

“More choice can mean slightly longer wait times for sellers whose homes are now on average,
selling after 34 days on the market as compared to 29 days a year ago,” said Ms. O’Neill. “The
list to sales ratio is 97 per cent of the list price.”

Increased sales activity was noted in specific pockets located throughout the GTA.

Sales in Oshawa (E16) increased 15 per cent compared to the first half of October 2007, based
mainly on solid sales of detached homes.

In Brampton West (W24) sales in the first half of October increased 21 per cent compared to the
same period a year ago mainly due to strong attached row house sales.

Downtown East (C08) experienced a 16 per cent overall increase in activity compared to mid-
October 2007 primarily as a result of condominium apartment sales.

Newmarket saw a 17 per cent increase in sales compared to the first half of October 2007 as a
result of strong condominium apartment and semi-detached home sales.

Previous news releases have incorporated 2006 comparisons. This was necessary in order to
place the market statistics in a broader context. We will be referencing 2006 in its entirety at the
end of the month when it will be more relevant.

“While we continue to watch the economic picture globally, it is the local real estate climate that
will determine our market place,” said Ms. O’Neill. “After the 2007 record highs, 2008 is an
encouraging market for buyers.”

Greater 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. Serving over 28,000
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

Friday, October 03, 2008

GTA Resale Housing Market Measured in September

The Greater Toronto Area resale housing market continued at a measured pace through September, Toronto Real Estate Board President Maureen O’Neill announced today.

With 6,424 homes changing hands last month, activity in the GTA declined six per cent compared to the 6,866 sales that took place in September 2007 and declined three per cent compared to the 6,622 transactions that were recorded two years ago.

In the City of Toronto sales were less robust. The 2,546 transactions recorded last month declined 11 per cent from the 2,854 sales in September 2007 and declined five per cent from the 2,680 sales recorded in September 2006. Sales increased six per cent between September 2006 and September 2007.

“We remain concerned about the Land Transfer Tax in the City of Toronto,” said Ms. O’Neill.

In the 905 Region, the 3,878 sales recorded last month were within three per cent of September 2007’s 4,012 transactions, and within two per cent of September 2006’s 3,942 sales. Sales in this region increased two per cent between September 2006 and September 2007.

From a year-to-date perspective, the GTA resale housing market has declined 14 per cent from the 73,827 transactions recorded a year ago. To date, there have been 63,595 sales through the TorontoMLS system this year. In the City of Toronto year-to-date sales have declined 16 per cent from last year’s figure of 30,059 to 25,257 transactions this year. In the 905 Region year-todate sales have declined 12 per cent. So far this year there have been 38,338 sales in the 905

Region compared to 43,768 last year. Prices throughout the GTA however, have remained fairly stable. At $368,549, the average price of a GTA home in September has declined three per cent from $380,132 recorded a year ago.

In the City of Toronto, the current average price of $393,647 declined six per cent from the September 2007 average of $420,182. Compared to the September 2006 average of $371,682 though, prices in Toronto for September 2008 have increased six per cent.

In the 905 Region, the average price of $352,071, increased marginally from the $351,641 recorded in September 2007, and was up five per cent from 2006 September average of $333,818.

“Although the market is not as robust as it was a year ago, homeowners are continuing to see strong returns on their investment,” said Ms. O’Neill. “On average, Sellers are achieving 97 per cent of their asking price.

With the average number of days on market increasing to 36 days from to 31 days a year ago, it is taking slightly longer for homeowners to achieve a sale.

“Even with respect to sales activity, each month we continue to see a handful of neighbourhoods reporting increases compared to a year ago.”

In Scarborough East (E08) transactions increased 22 per cent compared to September 2007 based on strong sales of all housing types.

Streetsville (W19) saw an 11 per cent sales increase due primarily to strong detached home sales.

In Newmarket (N07) transactions increased 11 per cent compared to a year ago, driven mainly by strong condominium townhouse sales.

“Given that these are trying times for the world economy, in context, the Greater Toronto Area resale housing market continues to fare quite well,” said Ms. O’Neill. “From a long-term perspective, buying a home remains a sound financial decision.”




Greater 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. Serving over 28,000 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

Thursday, September 25, 2008

Greater Toronto Area Resale Housing Moderate in September

The Greater Toronto Areaís autumn resale housing market began with moderate activity, Toronto Real Estate Board President Maureen OíNeill announced today.


With 2,726 sales during the first half of this month, activity has declined 16 per cent from the 3,236 recorded during same time period a year ago. Compared to the 2,913 transactions recorded during the first half of September 2006, activity has declined six per cent.


In the City of Toronto, 998 sales were recorded, which represents a 23 per cent decline from the 1,297 transactions recorded in the first half of September 2007 and an 11 per cent decline from the 1,118 homes that changed hands in 2006. However, activity increased 16 per cent in the first half of September 2007 from the same period in 2006.


In the 905 Region, there were 1,728 sales, down 11 per cent from the first half of September 2007, when 1,939 transactions were recorded and within four per cent of the 1,795 sales recorded during the same timeframe in 2006. However, activity increased eight per cent during the first two weeks of September 2007 as compared to 2006.


ìAlthough housing activity in the GTA remains moderate, weíre continuing to see a consistent pattern, and this stability is certainly positive news compared to markets in other sectors and in other world cities,î said Ms. OíNeill.


At $366,158 the average price of housing in the GTA has increased marginally from the $364,364 recorded a year ago and is up nine per cent from $335,208 recorded in September 2006.


In the City of Toronto, the average price is $386,524 up marginally from the $384,796 recorded in the first half of September 2007 and up 12 per cent from the $343,561 average from the same period in 2006.


In the 905 Region, the average price is $354,395; an increase of one per cent from $350,698 recorded a year ago and up seven per cent from $330,005 recorded in the first half of September 2006.


ìThe fact that prices have held firm despite moderate activity shows that consumers regard real estate as a sound investment,î said Ms. OíNeill.


The percentage of asking price that Sellers receive for their homes has also remained consistent. The list to sale price ratio is 98 per cent, as it was a year ago.


The 26,299 properties listed for sale on the TorontoMLS system have increased 26 per cent from a year ago when 20,841 homes were available. The time that homes remain on the market has increased as well, to an average of 37 days compared to 31 days a year ago.
In a few areas though, activity heated up during the first two weeks of the month.


Transactions in Bowmanville (E17) increased 66 per cent from a year ago, as a result of strong detached home sales.


In Streetsville (W20) activity increased seven per cent compared to mid-September 2007 due mainly to semi-detached sales.


Vaughan (N02) saw a 20 per cent increased in transactions from a year ago due to strong sales of all housing types.


Greater 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. Serving over 28,000 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

Monday, September 08, 2008

GTA Resale Housing Remains Steady Throughout Summer Months

The Greater Toronto resale housing market closed out the last full month of summer at a steady pace, Toronto Real Estate Board President Maureen O’Neill reported today.


The Greater Toronto Area (GTA) average price increased one per cent, to $364,886 when compared to last August’s figure of $361,890. Compared to the $338,192 figure recorded two years ago though, the average GTA has increased eight per cent.


In the City of Toronto the average price declined one per cent to $377,990 from last August’s $381,681. Compared to the August 2006 figure of $344,419 however, the average price in the City of Toronto has increased 10 per cent.


In the 905 Region the average price increased two per cent to $356,657 from last August’s $348,563. Compared to the August 2006 figure of $334,245 the average price in the 905 Region has increased seven per cent.


“These healthy figures substantiate that when undertaken as a long term investment, buying a home is one of the smartest financial moves you can make,” said Ms. O’Neill.


With 6,318 transactions recorded last month, sales in the GTA declined 22 per cent compared to the record August 2007 figure of 8,059. Volumes were off just nine per cent however, from the 6,976 sales recorded in August 2006.


In the City of Toronto, there were 2,437 sales in August, a 25 per cent decline from the 3,243 transactions recorded a year ago. Compared to the 2,706 sales recorded in August 2006 though, this represents a 10 per cent decline. Sales increased 20 per cent between August 2006 and August 2007.


The 905 Region’s 3,881 sales last month were 19 per cent off the August 2007 figure of 4,816 but declined nine per cent from two years ago, when 4,270 sales were recorded.


“Despite August’s moderate sales, the 57,364 transactions that have occurred this year are within 14 per cent of the 67,146 figure recorded a year ago,” said Ms. O’Neill. “In light of the fact that 2007 was a record year, our current market can certainly be characterized as stable.”
There are currently 25,076, properties available for sale in the GTA, which represents a 31 per cent increase from the 19,145 active listings a year ago. Increased choice has resulted in properties remaining on the market for an average of 36 days compared to 33 days a year ago.


Several neighbourhoods throughout the GTA experienced increased sales activity last month compared to August 2007.


In Pickering (E13) transactions rose six per cent based primarily on strong semi-detached home sales. In Halton Hills (W27) strong attached/row house sales activity lead to a three per cent increase in transactions overall.


Condominium apartment and detached home transactions drove Rosedale (C09) to an 81 per cent increase in overall sales. Detached home transactions also contributed to an 11 per cent overall increase in sales in Aurora (N06).


Greater 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. Serving over 28,000 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

Thursday, August 21, 2008

GTA Resale Housing Remains Stable in August

The Greater Toronto Area (GTA) resale housing market remained stable throughout the first half of this month, Toronto Real Estate Board President (TREB) Maureen O’Neill announced today.

“We’re continuing to see consistent levels with respect to sales volumes and prices,” said Ms. O’Neill. “While the numbers are more conservative than those in recent years, the stability we’re experiencing should help sustain consumer confidence as we move into the fall market.”

With 3,019 transactions in the GTA during the first half of the month, sales were down 13 per cent compared to the 3,480 sales recorded at mid-August last year, and off eight per cent compared to the 3,290 sales recorded during the same period in 2006.

In the City of Toronto, 1,192 transactions were recorded, down 15 per cent from the 1,411 sales that took place in the first half of August 2007, and off six per cent compared to the 1,269 sales that occurred in the same timeframe two years ago.

“While 2007 was a record year, it is still worthwhile to note that sales in the City of Toronto increased 11 per cent between mid-August 2006 and mid-August 2007, before the Toronto Land Transfer Tax went into effect,” said Ms. O’Neill.

In the 905 Region there were 1,827 sales to mid-month, down 12 per cent from the 2,069 transactions that took place in the same period a year ago, and off 10 per cent from the 2,021 sales recorded in the first two weeks of August 2006.

Prices meanwhile, increased compared to the same timeframe last year. The current average price in the GTA is $373,844, up five per cent from the mid-August 2007 figure of $354,088.

In the City of Toronto the average price is currently $394,563, up seven per cent from the $370,037 figure recorded a year ago.

In the 905 Region the average price is $360,325, up five per cent from the $343,210 recorded at mid-August 2007.

There are currently 26,128 active listings, up 28 per cent from the 20,365 properties available for sale a year ago. This has resulted in homes remaining on the market for a slightly longer period of 35 days compared to 32 days last August.

Several GTA neighbourhoods however, experienced brisk sales throughout the first half of this month.

In Whitby (E15) transactions increased 12 per cent compared to the same period a year ago as a result of strong detached home sales.

Detached home sales also led Aurora (N06) to a 21 per cent increase in transactions.

Streetsville (W19) saw eight per cent more transactions driven by a significant increase in the sale of attached row houses.

In Downtown Toronto (C01) transactions increased six per cent compared to mid-August 2007 as a result of strong sales in all housing types.

“It’s encouraging to see strong activity levels in pockets throughout all four corners of the GTA.” Said Ms. O’Neill.

Greater 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. Serving over 28,000 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 12, 2008

Canada's housing market cools in face of sharply slower economic growth

Canada's housing market lost some steam in July as the fevered pace of new home and condo construction cooled, especially in Ontario, after prices rose at their slowest pace in over six years in June in the face of sharply slower economic growth.

Canada's national economy "is flat on its back" after two straight monthly declines in employment, Sal Guatieri, senior economist at BMO Capital Markets, said Monday.

As a result, he said, people are "anxious and worried about the economic outlook," (and) "are not inclined to make big-ticket purchases like homes."

He also said the housing slowdown comes as a kind of payback after "unsustainably strong" building activity in past years and prices being "overly high for too long."

Helene Begin, senior economist with Desjardins Securities, said "it is possible that poor weather conditions, particularly in central and eastern Canada, magnified the decline in construction."

Both regions have experienced record amounts of rain and severe storms over the past couple of months.

The Canadian economy has been hurt by the slowdown in the United States, brought on by the worldwide credit crunch, which has savaged Canada's export-sensitive forestry and automotive industries, leading to thousands of layoff announcements.

Softening commodity prices, especially for oil, are also creating uncertainty in the marketplace.

The national economy lost 55,000 jobs in July, with Ontario and Quebec, the country's two most populous provinces and the centre of the manufacturing sector, the hardest hit.

Statistics Canada said Friday the national unemployment rate improved slightly to 6.1 per cent in July, from 6.2 per cent in June, but only because many people - especially the young - left the workforce.

Canada Mortgage and Housing Corp. reported Monday that July's annual rate of housing starts was 186,500 units, down from 215,900 units in June.

"It was the second consecutive monthly decline, and the most significant since December last year," said TD economist Pascal Gauthier in a note to clients.

He said "the overall level of new residential construction activity recorded in July fell significantly short of expectations for a total of 210,000 starts."

While Alberta and British Columbia sidestepped the national trend in construction activity, up 23 per cent and five per cent respectively, "every other province recorded significant reductions in housing starts," said Gauthier.

Saskatchewan fell the most with a 56 per cent decline, "but it was Ontario's 28 per cent pullback in starts that weighed the most on national figures," he said.

The volatile multiple unit segment, including housing such as condos, "took the largest hit, mostly in Ontario as well," said Gauthier.

Urban single-unit starts posted a seven per cent decline in July, continuing their gradual downward trend, he said.

Meanwhile, Statistics Canada said Western Canada's softening market slowed housing prices to their slowest pace in over six years in June.

Nationally, contractors' selling prices rose 3.5 per cent between June 2007 and June 2008, compared with the 4.1 per cent year-over-year increase in May.

Neil Killips, an economist with Statistics Canada, said "the price softening housing market is mostly due to Western Canada."

"Calgary... about two years ago... was at almost 60 per cent increases, but now it's at 0.1 per cent in July," he said. "That's really been the drive in the last two years, is what's happening in Alberta."

The housing market, said Guatieri "is downshifting from the elevated rates of activity of recent years."

Sales volumes fell sharply around the start of 2008, then price growth downshifted and now homebuilders are scaling back, he said.

Brent Weimer, a senior economist at CMHC, said that "after a strong first half of the year, the volatile multiple segment is now readjusting itself."

The figures bring the year's activity more in line with the agency's 2008 forecast of about 200,000 housing starts for the seventh consecutive year, he said.

Will this forecast hold? "As an average for this year, it's possible just given how high starts were in the first half of the year," said Guatieri.

But "in the second half of this year, housing starts will be far lower, quite likely under 200,000."

The seasonally adjusted annual rate of urban starts fell 14.8 per cent in July from June.

The June price increase was the slowest rate of growth since March 2002 when year-over-year prices increased by 3.4 per cent.

Prices edged up 0.1 per cent between May and June this year.

Regina homebuyers suffered the largest gains in new home prices, at 28.5 per cent over June 2007, while St. John's, N.L., had the second largest increase, at 22.2 per cent.

Going forward, said Gauthier, "one should not read too much into an oversized drop in multiple starts in a single month. The month-to-month volatility in this market segment is remarkably high on both the upside and downside."

A better indicator of the market going forward, he said, is the trend in single starts. For the remainder of the year, this segment "should experience a cooling after running too hot for too long."

BMO's Guatieri also predicted that the construction trend in single family starts for the rest of the year "will be downward."

House prices, he said, "will continue to moderate. In some cities, we will see outright declines as we're already seeing in Calgary, Edmonton and Victoria."

"Housing will no longer act as a tailwind for our economy at an unfortunate time because trade still presents a pretty stiff headwind and we won't get the offset from housing that we saw in the last year."



Source: By Eric Shackleton, The Canadian Press

Thursday, July 17, 2008

CMHC eliminates zero down mortgages and 40 year amortization

Last week the Government of Canada announced changes to CMHC insured mortgages. CMHC said that the changes where aimed at protecting and strengthening the Canadian housing market. The new measures include:

Fixing the Maximum amortization for insured mortgages to 35 years
Requiring a Minimum down payment of Five per cent for new insured mortgages
Establishing a consistent minimum credit score requirement
Introducing new loan documentation standards.
The new requirements are planned to take effect October 15, 2008. This will allow existing mortgage pre approvals with 90 day duration to be used or expire.

Please click on the following link to read last week's press release in more detail:

http://www.fin.gc.ca/news08/08-051e.html

Wednesday, July 16, 2008

June Breaks 1,000,000 Square Foot Barrier

In June, TREB Members reported 1,017,518 square feet of space through the TorontoMLS system, Commercial Council Chair Garry Lander announced today.

“This is the second best monthly performance for the year,” said Mr. Lander. “…and it was largely driven by the lease of a number of 100,000 square foot plus Industrial properties in the Vaughan area. One of the changes in the MLS® system over the past several years has been the increasing willingness with which TREB’s Commercial Members have used it to list properties of a significant size.”
On the pricing front, leased Industrial space (all size categories) averaged $5.77 sfn, up three per cent over last June’s figure of $5.63sfn. Commercial space (all size categories) traded for an average of $16.75 sfn, up nine per cent over the same time in 2007.


Sales Market Highlights

In June, TREB Members reported 53 sales of IC&I properties, including 23 Industrial buildings in all size categories that sold for $127.36 per square foot. This compares to the $175.47 per sf derived from non-MLS® sources, which saw a number of unusually expensive Industrial properties transact in the last month.


Members of the Toronto Real Estate Board’s Commercial Division adhere to a strict Code of Ethics and Standards of Business Practice, only those who have met the standards established by their peers are eligible to become Members.


Greater 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. Serving over 28,000 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.

Wednesday, July 02, 2008

GTA Resale Housing Continues Steady Pace

The Greater Toronto Area (GTA) resale housing market continued at a moderate but healthy pace throughout the first half of June, Toronto Real Estate Board President Maureen O’Neill announced today.
Prices continued their upward trend in the first half of this month. The GTA average price is currently $398,542, up four per cent over the $384,576 average from the same timeframe a year ago and up 11 per cent from the $358,648 recorded at mid-June 2006.
In the City of Toronto the current average price is $439,469, up three per cent over the $424,888 average a year ago and up 14 per cent over the $386,960 average in the first half of June 2006.
In the 905 Region the average price is $371,686 up four per cent from the $357,359 average a year ago and up 10 per cent from the $338,578 recorded at mid-June 2006.
“With 4,374 transactions in the first two weeks of this month, sales in the GTA declined 14 per cent compared to the same timeframe a year ago, which was particularly a strong year, when 5,074 properties were sold,” said Ms. O’Neill. “However, compared to the first half of June 2006 when 4,074 properties changed hands, this month’s activity is up seven per cent.
In the City of Toronto 1,733 sales took place to mid-June 2008. This represents a 15 per cent decrease compared to the 2,045 properties sold a year ago but a two per cent increase over the 1,690 transactions in the first half of June 2006. A different story emerges when you compare the first half of June 2007 before the Toronto Land Transfer Tax went into effect to the same period in June 2006, a period showing a 21 per cent increase in sales.
In the 905 Region, the scenario was similar. In the first two weeks of June, 2,641 properties were sold. This represents a 13 per cent decline compared to the 3,029 homes sold in the first half of June 2007 but an 11 percent increase over the 2,384 properties sold at mid-June 2006. When you compare the first half of June 2007 to the same period in June 2006, sales increased by 27 per cent.
Certain communities including Riverdale, West Agincourt, Caledon and Richmond Hill South experienced strong activity in the first half of this month.
In Riverdale (E01) transactions increased 28 per cent compared to the first half of June 2007 driven by strong condominium apartment sales.
Condominium apartment transactions also drove West Agincourt (E05) to a 24 per cent increase in sales compared to the same timeframe a year ago.
In Caledon (W28) detached home transactions led to a nine per cent increase in sales over the same period a year ago.
Richmond Hill South (N03) also experienced strong detached home sales, which resulted in a five per cent increase from mid-June 2007.
“With employment and interest rates holding steady and a 17 per cent increase in available listings compared to a year ago, it is an ideal time to take advantage of all that the market has to offer,” said Ms. O’Neill.

Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-ofthe-art Multiple Listing Service. Serving over 27,000 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, June 10, 2008

Steady GTA Resale Housing Market in May

The Greater Toronto Area resale housing market recorded 9,411 transactions in May, Toronto Real Estate Board President Maureen O’Neill announced today.
On a year-over-year basis the GTA average price increased four per cent to $398,148 in May from the May 2007 average of $382,787. Prices increased three per cent in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 Region there was a five per cent increase to $374,629 from $355,341 last May.
“Price gains show that real estate continues to be a solid investment for the consumer,” said Ms. O’Neill. “We are confident about the market because employment in the GTA continues to be strong and interest rates remain low. As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable.”
“May’s sales figures represent a 16 per cent decline in the GTA from the record month a year ago when 11,146 sales were recorded,” said Ms. O’Neill. “More than 9,000 properties changing hands still represents considerable market activity.”
In the City of Toronto, there were 3,711 sales, down 19 per cent from last May’s 4,578 sales and down 6 per cent from May 2006. In the 905 Region, 5,700 transactions were recorded, which represents a 13 per cent decline from the 6,568 sales during the same period a year ago but up 4 per cent from May 2006.
“The Toronto Land Transfer Tax has been in effect for four months and the decline in sales has been running for the same time period,” said Ms. O’Neill. “We’re keeping a close watch on the effect of this new tax.”
Two specific areas North of Toronto experienced increased sales activity in May. In Uxbridge (N16) sales were up 10 per cent, while Stouffville (N12) saw a 12 per cent increase in sales, driven mainly by detached home transactions.
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-ofthe-art Multiple Listing Service. Serving over 27,000 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

Monday, May 26, 2008

GTA Resale Housing Market Moderate in May

Moderate sales and healthy price increases continued to characterize the Greater Toronto Area resale housing market during the first half of May, Toronto Real Estate Board President Maureen O’Neill announced today.
“With 4,422 sales throughout the GTA in the first two weeks of this month, activity has declined 12 per cent compared to the 5,003 homes sold during the first half of May 2007,” said Ms. O’Neill. “Prices however, continue to be strong, averaging $400,817 in the GTA, up six per cent from the $377,612 reported a year ago.”
n the City of Toronto, there were 1,734 sales, representing a 15 per cent decline from the 2,053 homes sold during the first half of May 2007 and an 11 per cent decline from the 1,941 homes sold during the same period in 2006. The average price in the 416 is $437,205, up six per cent from $412,701 a year ago.
In the 905 Region, there were 2,688 sales, down nine per cent from 2,950 a year ago but up four per cent from the same period in 2006. At $377,688, the average price is up seven per cent from the $353,192 recorded during the same timeframe in May of 2007.
Despite moderate sales overall, some neighbourhoods experienced heightened activity during the first half of May. The GTA is showing signs for a healthy 2008 compared to the diminished activity during the first quarter of 2008.
The Danforth (E03) saw sales increase 29 per cent overall compared to the same timeframe a year ago due to strong detached home sales.
Interest in detached homes also led Streetsville (W20) to a five percent overall sales increase compared to a year ago.
In the Annex (C02) transactions rose 39 per cent compared to the same period a year ago, driven by strong condominium apartment and detached home sales.
Richmond Hill South (N03) saw strong sales in most property types resulting in a three per cent increase compared to a year ago.
“In recent years, homebuyers have faced a major challenge with respect to limited selection,” said Ms. O’Neill.
“Now though, inventory is up 11 per cent compared to a year ago, which has resulted in more choice for home buyers and will a positive effect on the quality of available listings.”
A wider selection from which to choose has also resulted in increased Days on Market, which has risen to 35 from last year's 28.
“The Greater Toronto Area offers a wide array of housing stock to fit almost any budget; I encourage anyone thinking of making a move to contact their REALTOR® to learn more about all of their options.”
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-ofthe-art Multiple Listing Service. Serving over 27,000 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

Monday, May 05, 2008

Resale Housing Market moderate in April, but prices up

With 8,762 houses sold in the Greater Toronto Area, April’s resale housing activity was down seven per cent from the record 9,452 transactions from the same timeframe a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.
“The market is showing signs for a healthy 2008 compared to the diminished activity we saw in the first quarter of the year,” said Ms. O’Neill. “We continue to experience a supply and demand situation and to-date, it remains a sellers market."
Sales activity however, was markedly different in the 416 and 905 regions. With 3,467
transactions in the City of Toronto, sales were down 10 per cent from a year ago. The 905
region was down five per cent from April 2007 sales, with 5,295 homes changing hands.
April’s GTA average price was $398,687, up eight per cent from the same period a year ago. In the City of Toronto, the average price was $446,781, up six per cent from last April. In the 905 region the average price increased five per cent compared to a year ago, to $367,196.
Several neighbourhoods experienced strong sales in April.
Scarborough East (E08) saw an eight per cent overall sales increase compared to April 2007, driven by robust detached home sales.
Caledon (W28) experienced a 15 per cent increase compared to the same timeframe a year ago as a result of strong condominium sales.
Condominium sales also drove Willowdale (C07) to a 32 per cent increase from a year ago.
In Thornhill sales increased eight per cent from last April due to strong detached home sales.
“The number of listings on the Toronto Real Estate Board’s Multiple Listing Service has increased to 24,539, up seven per cent from a year ago, which is good for homebuyers, who will find a greater range of options in the market,” said Ms. O’Neill. “With prices continuing to appreciate and increased listing inventory there are favourable factors in today’s market for consumers.”
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-ofthe-art Multiple Listing Service. Serving over 27,000 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

Wednesday, April 16, 2008

GTA Resale Housing Sales Ease in March

Low inventory levels kept the Greater Toronto Area resale housing market brisk but well off record levels last month, Toronto Real Estate Board President Maureen O’Neill announced today.
“Overall sales in the GTA declined 22 per cent compared to March 2007, 27 per cent in the City of Toronto and 18 per cent in the 905 suburbs,” said Ms. O’Neill. “It’s important to recognize though, that despite the worst winter in decades, 6,631 homes changed hands last month in the GTA and that is still a significant number.”
Diminished listing inventory, which at 20,533, was down six per cent from a year ago, kept prices strong in March.
Compared to last March, the average price in the GTA rose four per cent to $380,338 and two per cent in the City of Toronto to $404,361.
As well, a few neighbourhoods experienced increased sales activity last month.
Bowmanville (E17) saw a three per cent increase in transactions compared to March 2007, driven primarily by strong detached home sales.
Sales in Burlington (W25) were up 18 per cent compared to a year ago, with brisk activity in most housing categories.
Thorncliffe Park (C11) saw a six per cent overall increase in transactions, based mainly on semi-detached sales.
Increased semi-detached transactions also drove sales in Georgina (N17) up one per cent compared to last March.
Ms. O’Neill says March’s moderate performance isn’t disquieting given that Canadian economic fundamentals are holding steady.
“Forty per cent of international households that come to Canada settle in the GTA, giving us robust immigration evels; employment and wages continue to be strong; borrowing costs remain at historically low levels and there is a wide variety of mortgage products from which to choose,” she said.
“This means that there is a steady demand for housing and consumers should have the financial resources to buy homes; with such pent-up demand it is an excellent time to sell your home.”
“We remain concerned about the land transfer tax in Toronto and the economic slowdown in the United States,” added Ms. O’Neill. “Home sales in the City of Toronto spiked towards the end of 2007 probably in a bid to avoid the Toronto land transfer tax, but have since dropped off since the introduction of the tax.”

To view a complete copy of TREB's current Market Watch Report click here.

Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-ofthe-art Multiple Listing Service. Serving over 27,000 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, April 01, 2008

Roll-Back Land Transfer Tax Immediately, REALTORS® Tell Councillors

With the City's Executive Committee reviewing the proposed 2008 Operating Budget today, the Toronto Real Estate Board (TREB) is calling for City Councillors to immediately begin to fulfill their commitment to roll-back the Toronto Land Transfer Tax, while still keeping property tax increases in check. REALTORS'® input was presented in a detailed written submission to the Executive Committee.
“REALTORS® and the public they serve, have not forgotten about the motion approved by City Council last fall, which committed to rolling back the Land Transfer Tax once the provincial government starts addressing the funding of downloaded services,” said Maureen O'Neill, President of the Toronto Real Estate Board (TREB). “We believe that recent progress means that the City can, and should begin rolling back the Land Transfer Tax immediately.”
When City Council approved the implementation of the Toronto Land Transfer Tax on October 22, 2007, it also approved a motion committing to reduce the Land Transfer Tax by $50 million once the Province has uploaded 50 per cent of the City's estimate of downloaded costs of $729 million. In its written submission to the City's Executive Committee, TREB pointed out that the City is already in a position to implement the intent of this motion because of :


provincial uploading that has already begun,

further uploading expected later in the spring

provincial funding for operating costs of transit

ongoing provincial funding for infrastructure, which could help reduce debt servicing costs in the operating budget

opportunities available by implementing the recommendations of the Mayor's Fiscal Review Panel.
“Recent progress on uploading and other provincial funding, taken together with even modest implementation of the Mayor's Fiscal Review Panel's recommendations, will reduce pressure on this year's budget by literally hundreds of millions of dollars,” said O'Neill.
TREB also believes that City Council can begin rolling back the Toronto Land Transfer Tax, while keeping property tax increases to the rate of inflation as promised by Mayor Miller.
“The Mayor committed to keeping property tax increases in-line with inflation, but the proposed residential increase is double the rate of inflation,” said O'Neill. “We believe that there is enough flexibility in the 2008 Budget to allow City Council to meet the Mayor's property tax commitment, while also fulfilling the commitment to roll back the Toronto Land Transfer Tax.”
One of the key recommendations in TREB's submission to the City's Executive Committee calls on the City to focus on core services, optimize efficiencies and implement innovative options, consistent with the recommendations of the Mayor's Fiscal Review Panel.
“On numerous occasions, TREB called for an independent review of the City's finances, and we are encouraged by the work of the Mayor's Fiscal Review Panel,” said O'Neill. “It is clear that many of TREB's views regarding fair ways to address the City's financial challenges have been validated by the Panel.”

Copy of TREB's Toronto Budget Submission is available upon request.

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. Serving over 27,000 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

Monday, March 24, 2008

Toronto Real Estate Board says GTA resale housing market still down

Resale home transactions in the Greater Toronto Area continued at a moderate pace during the first half of March, Toronto Real Estate Board President Maureen O’Neill announced today.
With 3,183 transactions to mid-month, sales in the GTA and in Toronto declined 14 per cent and 18 per cent respectively compared to the same timeframe a year ago.
“It’s important to recognize that we have endured the snowiest winter since 1939 and this has undoubtedly affected the market,” said Ms. O’Neill. “The storm that pounded the GTA during the second weekend of March likely had more people focused on shoveling sidewalks than house hunting.”
Despite moderate activity, the value of homes in our city continues to appreciate. At an average of $385,405 in the GTA and $409,116 in Toronto, prices have increased five and four per cent respectively compared to a year ago.
As well, some neighbourhoods experienced an increase in activity during the first half of March.
At the North end of the Greater Toronto Area, Georgina (N17) experienced a 39 per cent increase in sales during the first half of March, driven mainly by detached home transactions.
The Agincourt area of Scarborough (E07) experienced a 12 per cent overall increase in sales compared to a year ago based primarily on strong condominium apartment sales.
Strong condominium apartment sales also allowed the Weston area in York (W04) to hold strong, with a 28 per cent overall increase compared to a year ago.
Toronto's Downtown core (C01) has also experienced healthy sales activity so far this month, due to strong condominium apartment sales as well. Overall sales in this area were up 11 per cent compared to a year ago.
“Condominium apartments have weathered the winter best so far this year, with 733 sales to date but we remain confident that once the snow has melted, we will see a very active spring market overall,” said Ms. O’Neill. “The land transfer tax in Toronto concerns us and we continue to keep a watchful eye on how this tax plays out in the market.”.
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. Serving over 27,000 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

Friday, March 07, 2008

GTA Resale Housing Down but Healthy

President Maureen O'Neill announced today, Toronto Real Estate Board Members recorded 6,015 resale home transactions last month, down 11 per cent in the Greater Toronto Area overall , 14 per cent in the City of Toronto and 9 per cent in the 905 suburbs compared to February 2007.
“To get an accurate perspective of current market conditions, a number of factors have to be considered,” said Ms. O’Neill. “With 18,018 properties available for sale, inventory has decreased seven per cent from last February.”
“This indicates that despite moderate sales, there is not an over-supply of homes on the market.
Generally, properties that are listed are selling fairly quickly and with a list to sale price ratio of 99 per cent, for the most part, sellers are realizing their asking price,” O”Neill added.
Despite the decrease in the number of sales from this time last year, there was positive news with respect to prices in February.
At $382,048 in the Greater Toronto Area and $424,235 in the City of Toronto, the average price increased four and two per cent respectively compared to February 2007. As well, the time on market in February was 30 days compared to 35 days a year ago.
Despite the overall decline, some GTA neighbourhoods experienced strong sales in February.
In Pickering (E13) sales rose 28 per cent overall compared to a year ago due to a strong increase in condo townhouse and condo-apartment transactions.
Strong condo-apartment sales also drove transactions in Rexdale (W10) to an overall increase of 18 per cent compared to February 2007.
Richmond Hill North (N05) experienced a 19 per cent sales increase compared to a year ago primarily as a result of strong detached home transactions.
“All economic indicators are in place for an active year in the GTA, and as the weather improves sales are expected to increase as well,” said Ms. O’Neill.
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. Serving over 27,000 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

Wednesday, February 20, 2008

Toronto Real Estate Board reports sales near 3,000 at mid-month

Resale home transactions in the Greater Toronto Area declined in the first two weeks of February, Toronto Real Estate Board President Maureen O’Neill announced today.
The first half of the month yielded 2,775 transactions, down 14 per cent from the 3,240 sales recorded in the same timeframe last year. The moderation in sales was more pronounced within the City of Toronto--down 18 per cent to 1,066 from last February’s 1,308—than in the 905 suburbs, which saw transactions off 11 per cent.
“It’s important to recognize that the mid-month report provides an indication of market conditions based on a very brief period,” said Ms. O’Neill.
“However, we believe the harsh winter weather we’ve experienced in the early part of the month has had a negative impact on both sales and inventory levels. If you can’t get buyers out to your open house, then you are less inclined to list. And fewer listings means less appealing product for the potential home-buyer. It’s a compound effect.”
Although sales eased, several positive factors were also noted. At $385,735, the average price in the GTA rose seven per cent compared to $358,533 recorded in mid-February 2007. Within the City of Toronto, the average rose 11 per cent to $434,657, although pockets within the East end (Agincourt, for example) rose at the more affordable pace of around five per cent. As well, properties are remaining on the market fewer days.
The average number of days on market is currently 31 versus 35 days at the same time last year.
Furthermore, a few neighborhoods both within and outside of the 416 area code saw increased sales over the first half of February, 2007.
In Ajax (E14) sales were up 11 per cent compared to mid-February 2007, based mainly on an increase in detached home sales.
In the West region, the W3 (York South) district saw a 41 per cent increase in transactions, driven by strong sales of semi-detached homes.
Central Richmond Hill (N04) also experienced a notable increase in sales compared to the same timeframe last year. Transactions were up 21 per cent, primarily due to an increase in attached row sales.
“We are optimistic that we will see a strong spring market because the economic fundamentals remain in place,” said Ms. O’Neill. “Prices are still particularly affordable in Toronto’s East end.”
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. Serving over 27,000 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

Wednesday, February 13, 2008

GTA Resale Housing Market Solid in January

January’s Greater Toronto Area resale housing market came within two per cent of a record performance for the month, Toronto Real Estate Board President Maureen O’Neill announced today.
A total of 5,073 properties changed hands last month, compared to the record 5,173 sales that took place in January 2007.
“This is a very positive start to the year but we will be watching closely to see how the City of Toronto’s new land transfer tax and a proposed property tax increase affect the market,” said Ms. O’Neill.
The average price, which currently stands at $374,449, rose six per cent compared to January 2007.
The strongest activity last month took place in Toronto’s Central and East districts.
The Danforth (E03) experienced a 30 per cent increase in transactions compared to last
January, driven by strong sales in all housing types.
In West Agincourt (E05) 32 per cent more homes changed hands, primarily as a result of a surge in condominium apartment sales.
Strong condominium apartment sales also lead the Downtown Core (C01) to a 19 per cent
overall increase in transactions compared to a year ago.
North York Willowdale (C07) also saw a 19 per cent increase in sales, due in large part to
condominium apartment transactions as well.
“While we are optimistic that the market will remain healthy throughout 2008, we recognize
there are threats such as a U.S. economic slowdown and a land transfer tax in the City
Toronto,” said Ms. O’Neill. “Like other levels of government, municipalities should be considering options to help off-set these risks. TREB plans to be a strong voice for REALTORS® and homebuyers as GTA municipalities, particularly the City of Toronto, debate their budgets.”
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. Serving over 27,000 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

Thursday, January 31, 2008

Bright Start to the New Year

The first half of January saw 1,776 resale homes in the Greater Toronto Area change hands, an 11 per cent increase over the same timeframe a year ago Toronto Real Estate Board President Maureen O’Neill announced today.
ÒThis early indication certainly gives us reason to be optimistic about the 2008 resale housing market,Ó said Ms. OÕNeill. ÒWe are still looking forward to a strong, steady year ahead. TorontoÕs land transfer tax will come into effect on February 1, so we are watching this issue.Ó
The average price also increased considerably compared to the first half of January 2007. It currently stands at $367,574 an eight per cent increase over the $340,793 recorded at mid-January a year ago.
Strong activity was noted in several areas of the GTA.
Bowmanville (E17) experienced a 65 per cent overall increase in transactions compared to the first half of January 2007, primarily due to detached home sales.
In Downsview (W05) sales nearly doubled compared to the same timeframe a year ago, with activity in all housing types.
The Lawrence Manor area (C04) also saw transactions double compared to year ago, driven largely by detached homes sales.
Central Richmond Hill (N04) showed a 59 per cent overall increase in sales compared to mid-January 2007, mainly as a result of attached/row house transactions.
The average time a property is currently on the market is 41 days, down 13 per cent as compared to a year ago.
“These are all solid gains that point to a stable, healthy market for 2008,” said Ms. O’Neill.
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. 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 available on www.TorontoRealEstateBoard.com.


Source: Toronto Real Estate Board

Thursday, January 17, 2008

How Will the U.S Market Crunch Affect Canadian Real Estate in 2008?

The market crisis along the south border has many homebuyers wondering how it will affect the housing market in Canada, but Canadian market analysts feel the problems the U.S. is experiencing should have little impact on real estate in this country.
Canada is not expected to experience the same downturn as the U.S. market for many reasons. First, the Canadian economy is simpler and the investment environment is more conservative than the United States. Secondly, Canadian federal surpluses have given consumers more confidence which has led to increased spendings on homes, retail goods, and business expansion. Additionally, the Canadian housing market has not been artificially driven by bad lending practices. And, unlike the U.S., all mortgages in Canada are insured.
However, Canada’s booming housing market could loose heat by the end of the year. The impact of the U.S. sub-prime crisis is expected to be felt by Canadians in three different ways:
First, a tightening of credit markets will occur as lenders move to correct their losses because of the investments in commercial papers. To borrowers, this may also mean smaller discounts off the posted mortgage rate.
Secondly, due to the overall economic impact and the soaring Canadian dollar, the impact will also be felt. There may be a slowdown in some business sectors related to housing and that may impact Canadian consumer confidence.
Thirdly, the impact on our economy could come form the falling purchasing power of the U.S. consumers, which in turn impacts large ticket purchases that involves Canadian made products - the auto sector is a good example.
"The Canadian housing market will slow down a bit in 2008, but that slowdown will be nothing compared to what happened in some U.S. markets in 2007. In Canada, the housing market has been setting records for volume and units sold for five consecutive years. We believe things are just moving back towards a more "normal" growth pace, but that still means the 2008 MLS® home sales activity will be the second highest on record, second only to the overall record was set in 2007.", says CREA's Chief Economist.
CREA's market analysis for 2008 also does not show any dramatic adjustment in the average MLS® residential price, again contrary to the conditions in some U.S. markets. CREA's analysis shows prices setting new records in every province in 2007 and in 2008, but price increases will be smaller in 2008. In effect, price increases will become smaller as the resale housing market becomes more balanced. Manitoba and Nova Scotia are expected to post an increase in average price of 7 per cent or more in 2008, while New Brunswick and Newfoundland are expected to show the smallest increase in average price of 4 per cent annually. The national average residential MLS® price is expected to increase 5.5 per cent.
"The housing market is expected to grow at a more moderate pace this year. However, this will be the result of decreasing affordability rather than the impact of U.S. sub-prime woes", said Craig Alexander, deputy chief economist at Toronto-Dominion Bank.
To conclude, markets will remain tightest in the western provinces in 2008. Even though Alberta and British Colombia are expected to pull back from the blistering pace they set earlier in 2007, housing there will remain in high demand. The days of 25 or 30 per cent increases in average price are over, but prices are forecasted to go up in Alberta and British Colombia by 5.2 and 5.1 per cent, respectively. Ontario's market and other eastern provinces are expected to keep its momentum with a slight slow down.

Source: Canada Realty News www.canadarealtynews.com

Thursday, January 10, 2008

Condo sales bring 2007 to a strong finish!

Brisk condo sales in December brought the 2007 Greater Toronto Area resale housing market to a strong finish, Toronto Real Estate Board President Maureen O'Neill announced today.
“Typically condominium apartment transactions comprise just over 20 per cent of total sales but in December they accounted for more than a quarter of resale activity,” said Ms. O’Neill. “Condos are often more affordable than other housing options and they show particularly well in winter.”
Increasing by 12 per cent over the previous year to a total of 93,193 sales, 2007 was the best year ever for GTA resale housing activity and December’s 4,646 sales came within two per cent of the best performance for the month, set in 2001.
The average price in December was $394,931, which resulted in an annual increase of seven per cent from the previous year.
The most active areas in December were in the City of Toronto.
Riverdale (E01) saw a 75 per cent increase in transactions compared to December 2006, primarily based on semi-detached home sales.
In the Mimico area of Etobicoke (W06) transactions were up 57 per cent, driven by a significant increase in the sale of condo apartments.
In North York, (C14) sales increased by 44 per cent compared to last December, as a result of strong detached home transactions.
Toronto's Downtown East (C08) experienced a 59 per cent increase compared to the same timeframe a year ago due to strong condominium and semi-detached home sales.
“We saw strong, stable monthly performances throughout 2007, which illustrates that consumers now recognize it’s always a great time to buy or sell their next home,” said Ms. O’Neill.
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. 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 available on www.TorontoRealEstateBoard.com.

Source: Toronto Real Estate Board