Thursday, December 16, 2010

Home sales rise in November for fourth straight month

TORONTO — Canadian home sales grew in November for the fourth straight month but continued a trend of unfavourable comparisons to the same month last year, when sales reached record levels.

Seasonally adjusted home resales were up 4.8 per cent compared to October, according to the Canadian Real Estate Association's monthly report.

Home resales on CREA's Multiple Listing Service have also rebounded by 19.5 per cent from July, when the market hit a trough following the introduction of new mortgage rules, higher interest rates and a new tax in two provinces.

However, actual home sales were down 9.3 per cent compared to record activity last November, consumer confidence improved from the recession and buyers rushed into the market to secure a new home while mortgage rates were near record lows.

"A comparison of November sales activity to sales for the same month in previous years suggests that activity is currently running at more normal levels," CREA said in its release, adding that the persistence of large year-over-year declines has been masking the steady improvement in sales since July.

Robert Kavcic, an economist at BMO Capital Markets said falling long-term mortgage rates and improved consumer confidence have helped stabilize the market after a downturn in the spring and early summer.

"After a dramatic ride that saw a recession, a piping hot rebound and a subsequent mini correction, the Canadian housing market seems to have landed softly on stable ground. The market now appears well balanced, with neither buyers nor sellers holding a meaningful edge."

The national average price for homes sold in November 2010 was $344,268, up two per cent from November 2009.

Prices also increased from October, when the average home cost $343,747, up less than a percentage point compared to one year ago. Still November prices were down from May when prices peaked at $346,881.

Gregory Klump, CREA's chief economist projects that the housing market will remain in balanced territory in the coming months.

"With sales activity having returned to better health and a firm floor under prices, sellers who previously shied away from putting their home on the market are expected to list their home in response to improved housing demand in recent months," he said.

"Following the chilling lows at the onset of the recent recession and the dizzying heights during the subsequent recovery, the national housing market appears to be returning to some semblance of normalcy."

Seasonally adjusted activity was up from October levels in two-thirds of all local markets, including eight of the ten most active markets.

The number of new listings on the MLS edged down 0.7 per cent and are now down nearly 15 per cent from the peak reached this April.

The decline in new listings is consistent with cooling activity in the housing market since the middle of the year, and has created balanced market conditions in about 60 per cent of Canadian markets.

About two-thirds of the remaining markets remain in sellers' territory.

It would take an average of 5.8 months to sell all of the current houses on the MLS in November -- down from 6.1 months in October.


Source: The Canadian Press

Thursday, November 25, 2010

Ontario REALTORS support grow ops registry bill

November 25, 2010 -Ontario REALTORS® support private members Bill 139, Clandestine Drug Operation Prevention Act, 2010, introduced by MPP Lisa MacLeod to establish a marijuana grow operations and clandestine drug laboratory registry.

“Grow-ops are major problem for homebuyers in the province and we have been urging the Ontario government to establish a registry to protect consumers for almost ten years,” said Dorothy Mason, President. “We urge the government to pass this bill in order to protect homebuyers.”

REALTORS® are obligated by law to disclose to potential homebuyers if a home has been used as a marijuana grow-operation or a drug lab. Ontario REALTORS are hindered by the lack of a central registry which is crucial to protecting homebuyers from the potential health and safety hazards of properties formerly used to manufacturer clandestine drugs.

Bill 139 defines a clandestine drug operation to be an illegal operation where any substance listed in the schedules I through IV in the Controlled Drugs and Substances Act of Canada can be obtained by any method or process.

Clandestine drug operations cause significant damage to homes. For example, physical damage done to the house by excessive moisture leading to mould, chemical contamination, structural alterations and electrical rewiring leading to fire hazards.

Often these homes received cosmetic renovations to disguise the fact they were marijuana grow-operations and consumer unknowingly purchases these homes. This can lead to loss of insurance for the property and exorbitantly high remediation costs.

The Ontario Real Estate Association represents 49,000 brokers and salespeople who are members of the provinces 42 real estate boards. OREA serves its members through a wide variety of publications, educational programs and special services. The association provides all real estate licensing courses in Ontario.

OREA was founded in 1922 to organize real estate activities and develop common goals across the province. These goals included promoting higher industry standards, protecting the general public from unscrupulous brokers and salespeople, and preserving private property rights.

Source: Toronto Real Estate Board

Friday, November 12, 2010

New home prices up across Canada

When Shawn Richardson breaks ground on his development in Thornhill on Wednesday, it will represent a milestone in the area.

At more than a million square feet for phase one, World On Yonge is being billed as the largest mixed use project in the Greater Toronto Area.

The first phase at Yonge St. and Steeles Ave. will have two residential towers, a 20-storey commercial office building and a three storey shopping centre. Another two residential towers are planned for the 10 acre site which will bring the project to 1.5 million square feet.

“The response has been tremendous. We have many situations where people might buy a retail unit, but they also buy a condominium so they can live where they work,” said Richardson, of Liberty Development Corporation.

Since sales started last September, the group has sold more than 85 per cent of the condos, representing 710 units.

But as the market slows, Richardson expects that the remaining units will typically be the hardest to sell.

Toronto new housing prices remained flat in September over August, the first time that prices have not increased this year, according to figures released by Statistics Canada Tuesday.

However, prices are up by 3 per cent year over year in the Toronto area market.

“ We’re not saying that the market is as strong as it once was, but no projects have tanked, and everyone is doing reasonably well. People are still buying,” said Richardson.

Nationally, new housing prices in Canada continue to increase, even as the economy shows signs of slowing.

Prices were up 0.2 per cent in September, following a 0.1 per cent increase in August according to figures released by Statistics Canada Tuesday.

While prices were up 2.7 per cent year over year in September, they were down from the 3.3 per cent year over year figure seen in June, as the trendline moves downward.

Some analysts believe that prices could end up in the negative figures by next year.

“Prices are divorced from sales, because it takes time for the market to settle. It takes a while before people are forced to reconsider their asking prices,” said Garth Turner, a former revenue minister who held a real estate forum dubbed “HouseAggedon” in Toronto on Tuesday.

Turner says he is convinced that the market remains in a bubble.

“You’ve got a severely inflated market where even with some of the best mortgage rates in history you are still seeing a persistent sales decline. People just don’t have the money to spend,” said Turner.

While prices seem to be holding the line in Ontario, builders blamed the newly implemented HST for slowing sales.

“The pace of residential construction activity has eased across Ontario as a result of slowing of sales earlier this year around the implementation of the HST,” said Ontario Home Builders’ Association president Bob Finnigan. “With that shift of demand to the earlier part of the year, construction has declined accordingly.”

Some urban areas did see month over month price declines, which Turner says is a sign of things to come.

Prices declined by 0.1 per cent in Hamilton, and 0.4 per cent in both Victoria and Vancouver.

“In Vancouver and Hamilton, a number of builders reported lower negotiated selling prices in September, while in Victoria, some builders offered discounts to spur sales,” said Statistics Canada.

The largest year over year increase is in Regina at 6.7 per cent, followed by Winnipeg at 5.2 per cent and St. John’s at 4.9 per cent.

The biggest year over year losers are Charlottetown at minus 2.2 per cent, Greater Sudbury and Thunder Bay at 1.2 per cent, Victoria at 0.6 per cent, and Windsor at 0.5 per cent.


Source: Tony Wong (Toronto Star)

Monday, October 25, 2010

CREA to allow flat-rate listings

Homeowners will soon have a new and potentially less expensive way to sell their properties, according to the details of a recent agreement between the Canadian Real Estate Association and the Competition Tribunal.

Under the agreement, agents will be able to list a seller’s property on the CREA’s Multiple Listing System for a mutually-agreed upon flat fee, as long as it’s not zero.

The agreement, ratified by CREA on Sunday, also means interested buyers can contact the seller directly using information posted alongside the listing. A link to additional property information can also be added.

Until now, homeowners have been forced to pay agents for the full suite of realtor services if they wanted their property to be listed on the MLS – through which 90% of properties in the country are bought and sold.

Competition commissioner Melanie Aitken first took issue with this in February by filing a complaint with the Competition Tribunal alleging the CREA rules limit consumer choice and prevent innovation in the market.

Phil Soper, president and chief executive of Royal LePage, said the changes will bring more choice, especially to the approximately 15% of consumers shopping for a discount service, usually in the low end of the market.

But Alberta-based broker Rod Thompson and founder of SellerInvite.com says Aitken took the entirely wrong approach to boost competition in the industry by giving people yet another for-sale-by-owner option.

“Nobody can save money if they don’t sell their home,” he said.

Instead, commission fees to the buying agent should be scrapped altogether, he said.

Traditionally, sellers pay two commission fees, one to the listing agent and one to agent who brings a buyer.

That’s created prejudice within the system towards discount agents who charge flat rates.

There are realtors who won’t show certain properties because there are no fees being offered, Thompson said.

“It’s a big complaint within the industry,” he said. “And it’s ultimately the consumer who is paying for it.”

Sunday’s changes could also give sellers a false sense of confidence, Thompson said.

“Sellers aren’t going to automatically go on MLS and sell their home. Right now there’s thousands of homes that haven’t sold on MLS, there’s thousands that have expired.”

Realtors are legally responsible for the transaction throughout the entire process, they know the market and draw up documents including important clauses. Lawyers won’t negotiate on your behalf, Thomspon said.

“At the end of the day, people like the MLS system, they like working with a realtor. It’s the cost of the access that’s an issue,” he said.

CREA has always been of the view its rules do not in any way prevent or restrict a broad range of business models, it said. In CREA’s view, the consent agreement reflects this reality and would avoid unnecessary and expensive litigation proceedings.

“This 10-year agreement brings a close to a long process of negotiation with the Competition Bureau and will allow CREA and realtors to do what they do best – help people with the biggest financial decision of their lives, buying and selling a home in these challenging economic times,” CREA president Georges Pahud said in a release.


Source: By Stefania Moretti, QMI Agency (Toronto Sun)

Tuesday, October 05, 2010

GTA resale home prices up in September

The number of existing homes sold in September in Greater Toronto dipped 23 per cent in September, compared with September a year ago, says the Toronto Real Estate Board.

Board members recorded 6,310 sales in September, down from 8,196 a year ago.

But prices rose despite the softer sales, with the median price of a home rising to $360,325 from $347,000 a year ago. The median price marks the point where half the homes sold for more, half for less.

The average price also climbed, to $427,329 from $406,877 a year ago.

Softer sales volume isn’t surprising after the record sales chalked up by the market in the second half of 2009 and early 2010, said Bill Johnston, president of the real estate board.

Meanwhile in a national survey, Re/Max says the outlook for Canada's home resale market looks healthy going into the final three months of 2010, after a summer "pause."

The national real-estate sales organization says it anticipates fewer sales than in the surprisingly strong fourth quarter of 2009 but prices are expected to hold up.

Re/Max says there hasn't been a big influx of listings, while demand has normalized after a very hot period in late 2009 and early this year.

It also says there was a good sign from the number of higher-end properties sold this summer in both smaller and larger centres.


Source: John Spears Business Reporter (Toronto Star)

Friday, September 17, 2010

Toronto home sales cooling off

The weather is cooling, and so are sales in Toronto’s existing home market.

Sales were down by 22 per cent in the first half of September, according to figures released Thursday by the Toronto Real Estate Board.

“Home sales are nursing a bit of a hangover from the real estate party in the first half of the year, ” said Doug Porter, deputy chief economist for BMO Capital Markets.

“Looking ahead, sales are expected to remain on the soggy side with consumer confidence dimming, but should find support in still low rates and steady job growth.”

The board reported that 2,623 sales were recorded in the first two weeks of the month compared with the 3,361 sales in 2009.

Nationally, the Canadian Real Estate Association reported on Wednesday that sales were actually up for the first time in months by 4.1 per cent in August.

The forward-looking data for September suggests that the trend line nationally will be on a downward slope as Toronto is responsible for a large share of the overall Canadian market.

“Sales remain below the record pace we experienced in the second half of 2009,” said TREB president Bill Johnston. “The prospect of higher interest rates and new mortgage lending guidelines resulted in higher than normal sales in the first few months of the year.”

Year to date, sales are still 6 per cent higher than they were in 2009.

Average prices are also 5 per cent higher than the same time last year to $412,367, compared with $393,818.

Breaking down the suburbs verses the Toronto area: Prices in the 416 area remained higher at $453,643. Prices in the 905 suburbs averaged $398,529.

While Toronto prices showed appreciation, average prices nationally remained flat year-over-year.

“The flat year-over-year rate is the weakest since April 2009,” David Rosenberg, chief economist at Gluskin + Sheff & Associates, said in an economic note Thursday.

Rosenberg said national average prices could go into negative territory by the end of the month:

“In our view, we could see year-over-year comparisons turn negative as early as September.”


Source: By Tony Wong, Toronto Star

Friday, September 03, 2010

Toronto home resales drop in August

The Toronto Real Estate Board reported that home resales took another hit in August, dropping by 23 percent from the same month last year.

A rush to buy in the spring has made this summer's drop noticeable, but does not reflect negative numbers in general.

"Sales were probably a little bit higher than expected in the first half of 2010, and now we're seeing a bit of a balancing out in the second half," the board's Jason Mercer told 680News.

"As people were looking down the barrel of interest rate hikes from June onwards this year, and also we saw new regulations around mortgage qualifications, we saw some people pulling forward their buying intentions," he added.

"I really do think that the interest rate environment and also new regulations on borrowing [were key factors] that influenced people's decision to purchase sooner rather than later in 2010."

Meanwhile, the value of homes throughout the city has gone up by six percent from August last year, with the average urban house now selling at $411,000.

Furthermore, home sales have steadily climbed year to year.

The Real Estate Board does not expect to see a record level of sales towards the final months of this year, but the market may be strong enough for house prices to continue rising.


Source: Shauna Hunt & 680News staff

Thursday, August 05, 2010

More signs the Toronto housing market is cooling off

Home sales in the Toronto market are cooling rapidly off in the second half of the year, with a 34 per cent drop in July compared to a year earlier.

This is the third consecutive month of falling sales, according to figures released by the Toronto Real Estate Board today.

In June, sales had dipped by 23 per cent. But this has been the steepest drop yet, with sales dipping to 6,564 in July compared with 9,967 a year earlier.

“The level of July sales remained below the expected long term trend. The market has become more balanced,” said TREB president Bill Johnston.

Total sales through the first seven months are still up by 12 per cent, thanks to record sales during the first half of the year.

The average price for July transactions was $420,482, representing a six per cent increase over last year.

Meanwhile, building permit figures for Toronto released by Statistics Canada today also show that developers are less bullish about the housing market moving forward.

Building permits in the Toronto area fell by 15.3 per cent in June over May thanks to a drop in residential building intentions in both the single detached and high rise segments. Non-residential buildings such as commercial and industrial projects showed an increase, but not enough to offset the drop in residential permits.



Source: By Tony Wong (Toronto Star)

Friday, July 30, 2010

Market More Balanced in June

Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.

"We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year," said Toronto Real Estate Board President Bill Johnston. "The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates."

The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.

"With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The annual rate of average price growth in the second half of 2010 will be in the single digits."

Median Price
In June, the median price was $367,750, from the $345,000 recorded during June of 2009.


Source: Toronto Real Estate Board

Tuesday, July 06, 2010

Toronto existing home sales fall by 23 per cent in June

The Toronto real estate market shows more signs of cooling off, with the second monthly drop in sales this year.

The Toronto Real Estate Board reported today that 8,442 homes sold in June, representing a 23 per cent decrease over June of 2009. In May, sales fell by one per cent compared with the prior year.“The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates,” said board president Bill Johnston. The average price for June transactions was $435,034 up eight per cent from June of 2009. However, that is below the double digit increases that have been recorded earlier this year.

“With more homes to choose from in the second quarter, many home buyers have been making less aggressive offers,” said Jason Mercer, TREB’s senior manager of market analysis. “This has resulted in less upward pressure on the selling price.” Active listings were also up by 28 per cent in June, suggesting that there is much more product on the market for buyers.

There is also more new supply in the pipeline, with Toronto residential building permits up by 22 per cent in April over May according to figures released today by Statistics Canada. Non residential building permits, representing industrial, commercial and institutional building were down by 28 per cent.


Source: by Tony Wong, Business Reporter (Toronto Star)

Thursday, June 03, 2010

Shine comes off housing boom

Canada’s resale housing boom has run out of steam.

After a year of solid gains, monthly sales in major cities took their first step back in May as the threat of higher mortgage rates, tighter qualification rules and a flood of new listings took the pressure off buyers to rush into the market.

In a number of markets, real estate agents said bids have virtually dried up as waves of new homes hit the market. The first quarter saw a record 233,402 properties listed as homeowners looked to cash in at what they perceived to be the top of the market.

The abrupt shift from a sellers’ market, where bidding wars were the norm, to a buyers’ market, where bidders can afford to demand lower prices, has led to price reductions in some cities.

“We had to bring the price way down,” said Amy Polson, a Toronto agent with Royal LePage Real Estate Services Ltd. who recently sold a three bedroom detached home in Toronto’s east end for $561,000 after the price was dropped 12 per cent.

She said there has been a huge increase in listings in the past few weeks and sellers “have to be more competitive with their pricing to get noticed.”

“It’s just like someone turned off the tap,” said real estate agent Paige Guernsey, who works at Coldwell Banker Horizon Realty in Kelowna, B.C. “You’d think all the buyers sent each other e-mails agreeing not to buy anything for a little while.”

May is typically the busiest selling month of the year as families look to move before a new school year begins. But many buyers made purchases earlier this year, compelled by government rule changes that made it harder to qualify for mortgages in April and the threat of higher mortgage rates later in the year.

The flurry of activity drove the national average price of a home to $344,968 by the end of April. The Canadian Real Estate Association expects prices to level off this year before posting a 2 per cent decrease in 2011.


“People worried about a bubble and the government tapped the brakes earlier this year and you’re starting to see that working,” said Phil Soper, chief executive officer of Royal LePage. “Rising prices have also tempered demand. I’m actually glad to see things cool a bit, because it’s gotten to the point where it’s difficult for many buyers. ”

Mr. Soper said the market likely peaked in December, and the number of sales has been easing off since. Prices in Toronto and Vancouver have gone too high, putting homes out of reach for the average buyer, he said.

Jen McCauley, who works in television in Toronto, planned to spend $400,000 on a home earlier this year but backed out recently because of high prices. Ms. McCauley, who owns a condominium, said she’d rather wait to see where things settle before making any bids.

“Things are just so expensive,” she said. “With all the uncertainty about the economy and where prices are going, I’d rather just stay where I am and let things get sorted out.”

CIBC World Markets economist Benjamin Tal said prices could decline by as much as 10 per cent in the next two years, but that a “violent” correction similar to the one seen in the United States remains unlikely because Canadians will keep paying their mortgages by cutting back on other discretionary expenses.

The recovery has overshot what is justified by the economy, Mr. Tal said, with 17 per cent of Canadian homes trading above their fair value, according to his analysis. Modifying a formula created by the International Monetary Fund, he said prices are higher than they should be in Canada “as justified by housing market fundamentals, such as income, rent or demographic changes.”

The slowdown is the beginning of real estate “stagnation” that will last until 2015, he said.

“The correction is starting. It’s not going to be a free fall, but we are going to see prices falling for some time.”


Source: Steve Ladurantaye from CTV.ca

Monday, May 17, 2010

April Experiences Record Number of Buyers and Sellers

Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board
(TREB) boundaries.

“The GTA resale market is functioning properly. Sales were high as
buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and
price growth,” said Toronto Real Estate Board President Tom Lebour.
“More balanced market conditions will result in sustainable rates of
annual price growth in the second
half of 2010.”

The average price for April transactions was $437,600 – up 13
per cent compared to the average of $385,641 recorded in April 2009.

“Home sales continue to be driven by many different segments of the
market, with sales growth for all major home types in both the City
of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s
Senior Manager of Market Analysis. “Home sales will remain strong in
the second half of 2010, but will slip from the current record pace as
borrowing costs rise.”


Source: Toronto Real Estate Board

Friday, April 23, 2010

Greater Toronto REALTORS® report Mid-April Resale Market Figures

Greater Toronto REALTORS® reported 4,601 sales through
the Multiple Listing Service® (MLS®) during the first two weeks of April.
This represented a 25 per cent increase compared to the 3,681 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 9,512.

“The fact that annual growth in new listings outstripped growth in sales suggests that the GTA existing home market is becoming better supplied,” said Toronto Real Estate Board President Tom Lebour.
"Home owners are reacting to strong sales and price growth by listing their homes in greater numbers. They are confident they will receive offers in line with their asking
price."

The average price for April mid-month transactions was $430,271 – up 12 per cent compared to the average of $383,361 recorded during the first 14 days of April 2009. "The average annual rate of price increase has declined and we are shortly going to see a return to sustainable single-digit rates of growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.

"As home buyers experience more choice in the marketplace, there will be less upward pressure on the average selling price in the GTA.”

Source: Toronto Real Estate Board

Monday, April 05, 2010

New rules for rental properties could squeeze first-time homebuyers

Buying a house in the hot housing markets of Vancouver, Toronto and other major cities in recent years has been a possible dream for some first-time homebuyers only because many of those houses had suites they could rent out.

But new rules coming into effect April 19 will all but wipe out that advantage in the eyes of banks handing out mortgages.

"It makes it much more difficult for people with rental properties to qualify for their own mortgage on their personal residence," said Vancouver mortgage specialist Patrick Mulhern.

The new regulations are designed to prevent speculation in the market, said Jack Aubrey, of the Canada Mortgage and Housing Corporation.

But Vancouver mortgage agent Mike Averbach said the new rules will do little to prevent investors from gambling in the housing market.

"They haven't decreased risk," he said. "They're just not allowing you to use the income."

Currently, landlords can use 80 per cent of their rental income to offset monthly mortgage payments. That means, if they receive $1,000 per month in rental income, they can use $800 to offset a $1,200 mortgage payment, leaving only $400 to be debt financed.

But under the new rule, only 50 per cent of a landlord's rental income will be used. Even then, that money will not be used to offset their monthly mortgage payment. It will be added to their total income, forcing them to qualify for the entire monthly mortgage.

For instance, a person earning $100,000 per year in regular income plus $12,000 per year in rental income will have a total income of $106,000 with which to qualify for a mortgage on their own home.

Rental income is essential for many of his clients, Averbach said.

In cities like Vancouver, where the average home price in February was more than $662,000, rental offset is the only way many people can qualify for a mortgage and the new rules will keep many of his clients in condos rather than houses, he said.

"Putting a renter in your basement is not speculative, it's reality," he said. "It helps you pay your mortgage."

The rule changes also make it more difficult for people to buy a property separate property to use as a revenue generator.

CMHC will no longer offer high-ratio financing on rental property not lived in by the owner. That means someone looking to buy a house as a rental investment will have to come up with a 20-per-cent down payment on the property, as opposed to five per cent before the rules changed.

The changes haven't worried groups advocating for tenants.

Jeordie Dent, of the Federation of Metro Tenants' Association in Toronto, where vacancy and availability rates have dropped over the last year, said he doesn't see a negative impact on renters.

Instead, he said his group welcomes the changes.

Dent said too many people become landlords without the financial or intellectual wherewithal to properly manage their properties.

"Anything that strengthens mortgage rules, from our perspective, is a good thing."


Source: Derek Scott, The Canadian Press from Sat Apr 3, 11:17 AM

Sunday, April 04, 2010

Canadian real estate too pricey: survey

The majority of Canadian homeowners and homebuyers think house prices are too high, a BMO survey suggests.

The survey found that 71 per cent of current and future homebuyers considered houses too expensive. That was especially true in major urban centres.

Despite this perception that homes cost more than they should, the survey also found Canadians feeling more pressure to "buy now."

"Housing prices have risen 89 per cent since 2002 — vastly outpacing family income gains," said Sal Guatieri, a senior economist at BMO Capital Markets.

"But with a cooler market just around the corner, with rising interest rates expected, and the introduction of the harmonized sales tax in Ontario and B.C., prudence may be a good choice for many new entrants into the housing market."

Rates heading up
This week, a number of Canadian banks began hiking their fixed-rate mortgages, with the popular five-year term jumping by six-10ths of a percentage point to a posted rate of 5.85 per cent.

While most borrowers are able to get the posted rate chopped by more than a full percentage point, most discounted rates also moved up by the same six-10ths of a point.

The most recent figures from the Canadian Real Estate Association, which are based on national MLS sales, showed the average selling price in February was $335,655, up 18.2 per cent in the last year.

In some markets, the average selling price was breathtaking. For instance in Vancouver, the average home changed hands for $662,741 in February — up more than $120,000 from a year earlier.

Higher mortgage rates and the arrival of tighter mortgage lending rules are sending more first-time borrowers to independent mortgage brokers rather than banks, according to the Canadian Association of Accredited Mortgage Professionals.

Figures from CMHC last year showed that 42 per cent of homebuyers aged 25 to 34 used a broker.

New lending rules in effect Apr. 19
New mortgage lending rules coming April 19 will require buyers to qualify for a five-year, fixed-rate mortgage even if they plan to choose a lower-rate variable mortgage.

About one-third of respondents in the BMO survey said they'd lost sleep because of the stress of trying to buy a new home and about 15 per cent of prospective buyers said they'd been in bidding wars and had felt they'd often overpaid as a result.

The online survey was carried out by Harris-Decima between Feb. 16 and Feb. 22 and was based on a sample of 1,000 Canadians between the ages of 25 to 45 years who are either current home owners or are planning on purchasing their first home in the next 12 months.


Source: CBC.ca with files from The Canadian Press

Monday, March 22, 2010

GTA new home sales in February best since 2006

Sales of new houses and condominiums in the Greater Toronto Area were up by more than 237 per cent in February compared with last year according to figures released today.

The 3,148 new homes sold represented the highest levels since 2006, according to RealNet Canada Inc.

“The new home market continues to benefit from the tight conditions in the resale market, 50-year low interest rates and healthy levels of consumer confidence in real estate,” said the Toronto-based Building, Industry, & Land Development Association.

However, February of 2009 was a recessionary year, with the figures representing the bottom of the market. Compared with 2008, February sales were still respectable, up 24 per cent, while it was up 19 per cent compared with 2007.

February sales were virtually split between low rise and high rise, with 51 per cent of buyers opting for detached or town homes, while 49 per cent chose condominiums.


Source: www.yourhome.ca by Tony Wong on March 22, 2010

Monday, March 01, 2010

MID-FEBRUARY RESALE HOUSING MARKET FIGURES

Greater Toronto REALTORS reported 3,555 sales through
the Multiple Listing Service during the first two weeks of February.

This represented a 74 per cent increase compared to the 2,044 sales recorded during the same period in 2009 when resale transactions had dipped due to the recession. The February mid-month sales total was also 7.7 per cent above the previous high set in 2006.

"Home ownership demand remains strong in the GTA, as households remain confident that economic recovery is at hand and that ownership housing will continue to be a quality long-term investment," said Toronto Real Estate Board President Tom Lebour.

The average price for February mid-month transactions was $429,997 - an 18 per cent increase over 2009. New Listings within the Toronto Real Estate Board boundaries were
up 15 per cent to 6,212.

"Double-digit price increases will persist through the first quarter of the year," said Jason Mercer, TREB's Senior Manager of Market Analysis. "However, as new listings continue to increase creating a better supplied market, we will see the annual rate of price growth moderate into the single digits."

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 29,000 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 03, 2010

Toronto existing home sales skyrocket 87 per cent

The January real estate market started 2010 at full gallop, with sales up 87 per cent from the year before, according to figures released today.

There were 4,986 existing home sales in January, compared to 2,670 sales the year before when sales hit an all-time low for the month, according to a report by the Toronto Real Estate Board.

“The Greater Toronto Area home market has rebounded well from the lows in sales experienced at the beginning of 2009,” said Tom Lebour, president of the board.

Placed in perspective, this January’s sales were slightly higher than the January average in the years preceding 2009 when the economy faced recession.

The average price of a home this January hit $409,058, up 19 per cent compared with $343,632 in the same month last year.

TREB warned comparisons to last year will continue to be extreme in the first quarter of this year as “we continue to make comparisons to weak market conditions at the beginning of 2009.”

Jason Mercer, senior manager of market analysis for TREB said sales and price growth is expected to be slower in the second half of this year.


Source: Tony Wong, Toronto Star - Feb 3, 2010

Wednesday, January 13, 2010

GTA's office vacancy rate rises

The impact of the recession can still be felt in the Greater Toronto Area's office market, according to a report released by Colliers International Monday, as weak demand and an influx of new office space pushes up the commercial vacancy rate .

The office vacancy rate in the GTA continued its upward trend reaching 6.1 per cent, or 11.3 million square feet at of the end of 2009, the winter 2010 semi-annual office & industrial market reports and forecast from Colliers said. This represents an increase of 20 per cent in vacancy levels compared with 2008.

Against this economic backdrop, the average asking net rent in Toronto's office market maintained its downward trend, dropping by more than nine per cent from $17.83 per square foot in Q4 of 2008 to $16.20 per square foot at of the end of 2009.

Colliers' analysis and forecast for 2010 calls for a further, yet moderate decline in average asking net rent to the level of $16 per square foot as the vacancy rate is expected to peak at 6.9 per cent. These trends are expected to reverse in 2011.

“Historically there has been a lag between economic recovery and its impact on the GTA office market, however improvements in market conditions are imminent,” said John Arnoldi, managing director with Colliers International in Toronto. “While in some market nodes there is still disparity between landlord and tenant expectations, we've observed that this gap is narrowing and expect this trend to carry on in 2010.”

The challenging economic realities of 2009 have also affected the sub-lease market in the GTA. The growing number of companies that have been looking for ways to reduce overhead and utilize unused office space drove the GTA sublease market to expand by 48 per cent compared with the end of 2008, now surpassing 1.1 million square feet or 10 per cent of total vacancy.

“What's interesting to note is that in the latter half of 2009, the amount of vacant sublet space actually decreased by three per cent from early year increases, showing signs of potential recovery,” Mr. Arnoldi adds.

Other highlights

- Leasing activity in the GTA's industrial market remained low in 2009 with an availability rate of 6.3 per cent (45.5 million square feet). This high level of vacant space hasn't been recorded since 1997.

- In 2010, GTA's industrial markets will add 2.3 million square feet of new supply scheduled to be completed, below the annual average of 7.3 million square feet per year, over the past 10 years.

- Industrial average asking net rents continue to drop between the end of 2008 and 2009, decreasing by 15 per cent as landlords align themselves with market expectations.

- The office vacancy rate in downtown Toronto grew from 4.5 per cent in 2008 to 5.3 per cent at the end of 2009. Asking net rent dropped by more than $3 per square foot to $21.38.


Source: The Globe and Mail