Toronto & GTA Real Estate Blog

Mortgage lending tightens for self-employed, immigrants

2012-02-01T08:40:00.000-08:00

It’s going to be tougher for the self employed, new immigrants and higher-risk borrowers to get a mortgage as concerns continue to mount over the state of Canada’s housing market.

CIBC’s wholesale mortgage arm, FirstLine, quietly announced Tuesday that it will no longer accept new applications from “stated income” homebuyers who can’t prove they have the annual net income to qualify for home loans.

FirstLine also set a $1 million cap on what it will lend for a home purchase.
The major change in policy, which is bound to pique the interest of other major lenders, came on the same day it was revealed that the Canada Mortgage and Housing Corp. could be forced to cut back on the mortgages it insures.

The moves are seen as among the clearest indications yet that Canada’s hot housing market and record levels of household debt are a concern far beyond just the Ottawa offices of Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney.
That’s despite a Bank of Montreal report this week that says Canada’s housing market is more balloon than bubble and more likely to deflate than pop.

“The signs are there that everyone is worried, with the exception of BMO. It’s not like there is just one person saying there is a problem with the housing market,” said Jason Friesen, a mortgage consultant with the Callum Ross Team.
“It’s impossible to know, given all the doom and gloom in the rest of the world, what will happen over the next three months or the next six months, but lending institutions are looking for ways to protect themselves.”

The CIBC was unable to comment last night on the changes, other than to say FirstLine’s decision “reflects the normal course of business.”

But that, coupled with CMHC’s predicament, is sure to raise concerns.

CMHC has traditionally backstopped loans, especially to first-time homebuyers who can’t raise the traditional 20 per cent downpayment for a home.
But the housing corporation has recently received “an unexpected level of requests for large amounts of CMHC portfolio insurance” that has pushed it close to the $600-billion cap on insurance set by the federal government.
Those requests have come from financial institutions looking for, in essence, taxpayer backing on pools of previously uninsured low-ratio mortgages.
While a CMHC spokesperson insisted this “does not affect the availability of CMHC’s mortgage insurance for qualified home buyers and will not impact the cost of buying a home,” the federal housing company may inevitably be forced to take a harder look at who it insures down the road, housing experts say.
That’s led to speculation that CMHC, too, could back away from self-employed home buyers who often need insurance to get a mortgage.

CMHC declined to comment on those suggestions Tuesday, other than to say “CMHC continues to manage its mortgage loan insurance business in accordance with the $600 billion insurance in force limit.”
FirstLine’s announcement is “a pretty substantial change in thinking” from the second-biggest mortgage lender in the country, said Friesen.
The question is whether other institutional lenders will follow suit.
CMHC’s situation is equally worrisome in that the federal limit could see a tightening of lending conditions that leads to a cooling of a market many housing experts consider “overheated.”
As of Sept. 30, CMHC had insured $541 billion in loans, up from $501 billion a year earlier. Just three years ago, CMHC was insuring $450 billion in loans and asked Ottawa for approval for the $600 billion cap.
The increase in insurance-backed loans is not only evidence that increased prices are pushing houses further out of reach of many homebuyers, but that people are still so keen to get into the market, they’re willing to pay for mortgage default insurance, said TD Bank economist Sonya Gulati.
Maintaining the cap could have a dampening effect on demand for housing, but would be “an indirect way of making it tougher to get a mortgage,” she said.
Ottawa has raised concerns about record levels of household debt, fuelled by high-spending baby boomers and historically low interest rates.
But restricting CMHC “is a bit trickier,” said Gulati, than having Ottawa tighten up mortgage rules yet again by insisting on higher downpayments and shorter amortization periods.

Source: By Susan Pigg (Toronto Star)

Home prices to rise again in 2012, but more slowly than last year: LePage

2012-01-16T07:18:00.001-08:00

Canadian home prices will continue to go up in 2012, although at a slower pace than they did last year, according to one of the country’s largest real-estate sales organizations.

Royal LePage, which franchises brokerages across the country, predicted Thursday that the national average price for resale homes will increase this year by 2.8 per cent by the end of 2012.
It said the national average price for a standard two-storey home was $375,427 in the fourth quarter of 2011, up 4.2 per cent from 2010.

“Widespread calls for a major real estate correction in 2012 simply can’t be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand — albeit at a slower pace,” said Phil Soper, the president and CEO of Royal LePage Real Estate Services.

National averages don’t tell the whole story, however, since there are wide variations depending on the type of home and location.

In Vancouver, a standard two-storey home had an average price of $1.1 million in the fourth quarter of 2012, up 10.9 per cent from a year ago. By contrast, two-storey homes in Atlantic Canada had an average price of $200,000 or less in several cities where increases were fairly flat compared with a year ago.
In Toronto, which is usually the country’s second-most expensive real-estate market after Vancouver, Royal LePage found strong price gains for most housing types in the fourth quarter — due to a lack of available properties and steady demand.

The Royal LePage forecast came as the Statistics Canada reported the price of new homes rose again in November, led by gains in Toronto and Montreal.
The government agency’s new housing price index rose 0.3 per cent in November, after a 0.2 per cent increase in October. On an annual basis, the index was 2.5 per cent higher in November compared with November 2010.

The largest year-over-year price increases in reported by Statistics Canada were in Toronto and Oshawa, Ont., where they were up 6.2 per cent.

In 2012, Royal LePage expects that real estate values in Toronto will increase 2.6 per cent compared to 2011 — slightly slower than the national growth rate.

In the fourth quarter, the average price for detached bungalows rose 7.2 per cent from a year earlier to $532,137; prices for standard two-storey homes rose 4.2 per cent to $629,188 and standard condos rose 3.4 per cent to $347,659.

Some economists have said housing prices in certain Canadian markets, including the Toronto area, may be too high to be sustainable and are due for a correction. However, LePage said housing prices have been high in Toronto because demand has outstripped supply.
“Inventory has been a challenge for Toronto’s potential buyers throughout 2011 and this restricted supply has put upward pressure on prices,” said Gino Romanese, senior vice-president for Royal LePage Real Estate Services Ltd.

“Standard condominiums in the resale market saw a more modest increase due to a healthier supply that was created by newer units coming online. However, demand for older units has increased as they are generally larger in size and preferable to (people downsizing from houses) who are used to more space.”
In Victoria and Saint John, N.B., house prices were flat or slightly down in the fourth quarter, compared with the same period of 2010.

In Saint John, detached bungalows fell 2.2 per cent year-over-year to $179,946, while standard two-storey properties slipped 0.3 per cent to $298,076. Condos were the exception, with average prices climbing 16.1 per cent year-over-year to $159,370, although LePage said those increases weren’t typical.

In Victoria, standard two-storey homes were unchanged, with prices remaining at $480,000 while detached bungalows slipped 0.8 per cent to $486,000 and condos dropping 1.1 per cent to $282,000.

Source: The Canadian Press

Toronto housing market headed for cool down, BMO predicts

2011-12-29T05:59:00.000-08:00

Vancouver’s hot housing market is headed for a cool down in 2012. So is Toronto’s.
But prepare for oil prices — and Alberta’s distinction as the strongest employment market in Canada in 2011 — to propel Calgary and Edmonton to the top two spots next year, according to a bold prediction by BMO Economics.
“Assuming oil prices hold around $90 or better, look for those two cities to lead the way for the hottest housing markets in 2012,” says BMO Deputy Chief Economist Doug Porter.
But GDP growth of just 2 per cent next year, slowing job growth and record-high household debt makes it highly unlikely that we’ll see a repeat of this year’s “surprisingly perky performance” of Canada’s housing market overall, warns Porter in a report.

Leading the way was Vancouver where house sales were up 16 per cent in November 2011 over a year earlier as the seasonally adjusted price of a house hit $756,512.
“That won’t be repeated next year — there are already clear signs that sales are dipping, and price increases are starting to ebb,” says the report.
“Toronto has seized the mantle of hottest major market in recent months, and appears to be at some risk of overheating.”
In second-place Toronto, home sales were up 9.7 per cent in November over a year earlier as the average house price surpassed $480,000 for the first time.

Calgary and Edmonton clearly have some catching up to do, given that their housing markets have remained flat over the last year, even as Alberta topped the rest of the country in job growth.

House prices there are a relative bargain with the average house selling for just $402,185 in Calgary and $326,741 in Edmonton in November, according to figures from the Canadian Real Estate Board.

Source: by Susan Pigg (Toronto Star)

Toronto Mayor Rob Ford to seek 2.5-per-cent property-tax hike

2011-11-29T05:48:00.000-08:00

Toronto residents will be asked to pay 2.5-per-cent more in property taxes at a time of cuts to city spending as Mayor Rob Ford continues his austerity crusade with the proposed budget for next year.
The mayor is attempting to reverse a steady increase in spending – an especially tall task in municipal government, where Mr. Ford requires buy-in from a majority of council. Toronto residents get their first glance at how Mr. Ford plans to do that when the wraps come off the 2012 budget starting Monday.

Proposed cuts would shave close to $50-million off the city’s total spending, sources familiar with the budget say. At the same time, the city is counting on taxes to cover a greater share of its planned $9.35-billion budget, which also includes revenue from transfer payments, user fees and other sources. A growing assessment base and the proposed tax hike are expected to add close to $100-million to the city’s coffers, sources say.
Mr. Ford has been clear about his desire to shrink the size of Toronto’s government and reduce costs across the board. For too long, he argues, the city has lived beyond its means, relying on one-time revenue and bailouts from the province to balance its books.
But curbing spending is proving to be a greater task than the mayor envisioned when he promised voters he could cut costs and preserve services by finding the “gravy” at city hall – proof his critics say that there is no gravy after all.
The proposed cut to next year’s budget represents about half a per cent of total expenditures. Balancing the city’s books will depend on one-time windfalls, such as the sale of real estate and the city’s interest in Enwave, Toronto’s downtown district heating and cooling system, The Globe and Mail has learned.
Gaining council’s approval for this budget is a key test for the mayor. The prospect of cuts to libraries and transit service has prompted strong push-back from the public. A review of core services this summer came up with $27.7-million in cost savings to which councillors could agree and the mayor’s closest allies outvoted him earlier this month on a money-saving measure to stop the collection of extra recycling placed beside blue bins.
Labour costs also will be a factor. Staff cuts are a certainty, with pink slips already being delivered in some departments. In addition, management are being trained to drive Zambonis and deliver front-line services in anticipation of a possible lengthy labour disruption next year.
In selling his budget, Mr. Ford is expected to emphasize the need to hold the line on spending, stressing that a dollar directed to save one service must be balanced by a dollar cut elsewhere.
“This is where the city needs to go,” said a source close to the administration. “This is all about resetting the foundation.”
A city-wide directive asked for 10-per-cent savings in all areas. But some, such as police services, failed to reach that number, meaning others will face even more reductions. “Not all departments are essential,” said the source, characterizing the 10-per-cent request as a “management tool,” used to push staff to find savings.
Using the cost-cutting efforts of other governments as a guide, economist Eric Lascelles predicts lowering Toronto’s spending will be tough. Inflation and a growing population naturally drive up expenditures by about 3-per-cent annually, he said, even without new programs, so holding the line or reducing the money going out generally means fewer services.

“It’s difficult to avoid,” said Mr. Lascelles, chief economist for RBC Global Asset Management, pointing to the federal budgets of Paul Martin as an example. “You have to be out there actively cutting and that’s the challenge. It’s very unpopular and politicians don’t like to be unpopular. That’s what makes it so difficult,” he said.
Critics of Mr. Ford, among them former budget chair Shelley Carroll, argue there is no need to cut spending in a city with a growing population and tax base like Toronto. “We are not that broke,” Councillor Carroll said. “You should be efficient, but rein in spending? There is nothing to rein in here.”

Source: Elizabeth Church (Globe and Mail)

Real estate boards push back

2011-11-16T17:10:00.000-08:00

The Canadian Real Estate Association might have struck a deal that gives property owners the chance to pay brokers only for the services they want when selling their homes.
But in an odd twist, a year after settling with the Federal Competition Bureau, the real estate association is now facing an internal revolt by several member boards that say they are fed up of paying for services they don’t need.
Indeed, the Greater Montreal Real Estate board – the second largest board in Canada with 10,000 members – says it would consider leaving CREA at the end of 2012 if the association doesn’t cut expenses, and embrace the very same “fee-for-service” model now available to Canadian homeowners.
“What we want here in Quebec – and we assume it’s the same thing at other real estate boards in Canada – is for the CREA to provide us with à la carte services,” Montreal board president Patrick Juanéda told The Gazette in an interview Thursday. “We have too much duplication of services. Why recreate what already exists?
“This is a reality that’s existed for 10 years, and it’s just grown and grown. It’s becoming too expensive; our members are fed up.”
According to the Montreal board, CREA’s national membership dues are to rise 41 per cent between 2010 and 2013, from $220 to $310. CREA dues are used to defray the costs of services like government relations, publicity, meetings and technological tools like the realtor.ca website.
The CREA dues are part of the more than $2,000 in fees paid this year by a Montreal-area broker to his or her industry associations. These fees come at a time when members are seeing their commissions watered down by competition from For Sale By Owner sites and discount agencies where brokers are willing to be paid less for offering limited real estate services.
But a spokesperson for CREA said any fee increases were approved by 80 per cent of association delegates at a 2010 meeting. The fee increase, Pierre Leduc said in an email, was needed so CREA “could keep up to date with the tech tools consumers and Realtors use,” such as new apps developed by the association.
Yet Juanéda says CREA services like its ad campaigns aren’t useful in Quebec, where the entire real estate profession – down to the use of terminology like “broker” as opposed to “agent” – is regulated by provincial law. Indeed, last month CREA actually reimbursed the Montreal board for the dues its members pay for advertising, Juanéda said.
What’s more, CREA’s site, realtor.ca, duplicates the
centris.ca website used by most brokers in Quebec.
The Montreal board says CREA fees have grown by 121 per cent over the last 10 years.
“What company today would spend that much more without trying to trim its own fat?” Juanéda asked.
Although Juanéda says his concerns over duplication of services are shared by real estate professionals across the country, Quebec real estate boards appear to be the most vociferous. One small real estate board – in Granby – has already opted to leave.
A spokesperson for the Toronto Real Estate Board, Canada’s largest board, could not be reached for comment. Neither could ones for the Real Estate Board of Greater Vancouver or the Calgary Real Estate Board.
But in a recent interview, outgoing Calgary board president Ron Esch told Real Estate Magazine that duplication of services is a concern for his members.
“One of the concerns I have for real estate boards (and it includes the provincial associations and CREA) is that we don’t duplicate services at the different levels,” Esch told the magazine. “We need to make sure that we don’t keep piling it on and then the member has to pay for the same service at two or three different levels.”
CREA spokesperson Leduc said the complaints against CREA largely stem from Quebec boards where brokers have been hit by a hefty fee hike from the real estate industry’s watchdog, the Organisme d’autoréglementation du courtage immobilier du Québec, or OACIQ.
“We understand that Quebec boards and their members are under unique pressures due to market conditions and the fact that the regulator in Quebec has nearly doubled its licensing fees,” Leduc wrote.
Leduc, however, acknowledged that the concerns aren’t limited exclusively to Quebec boards.
“As you can imagine, with over 100,000 members and 103 member boards and associations, CREA is always talking with them about various issues, how to meet evolving needs, etc.,” he wrote. “But I’m not aware of any specific ongoing concerns related to the dues increase – as I said almost 80 per cent of the delegates approved it.”
Leduc was not able to say Thursday whether the association would change its model of collecting dues from member boards, but noted that CREA would continue to talk to disgruntled boards.
“We have had, and continue to have, discussions with some Quebec boards, including Montreal, and are working toward a mutually agreeable solution that works for the benefit of all CREA members.”

Source:The Montreal Gazette

GTA REALTORS® Release Mid-Month Resale Market Figures

2011-10-25T06:07:00.000-07:00

Greater Toronto REALTORS® reported 3,477 transactions through the TorontoMLS® system during the first 14 days of October 2011. This total represented a 20 per cent increase over 2,890 sales reported during the first two weeks of October 2010. Year-over-year growth in new listings for the same period was slightly stronger than that recorded for sales – up 21 per cent to 6,249.

"The first two weeks of October seem to be pointing towards more balanced market conditions as we move toward 2012. Growth in new listings outstripped growth in sales, meaning more choice for buyers," said Toronto Real Estate Board President Richard Silver. "A growing number of home owners are reacting to the above average price growth reported this year and have decided to list their home for sale. They are confident they will receive timely offers in line with their asking prices."

The average selling price during the first two weeks of October was $475,743 – up 7.5 per cent compared to the same period in 2010.

"The average resale home price is expected to grow at a slower pace in the months ahead because the market is becoming better supplied. There will be less competition between home buyers as we move through the fall and winter." said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "With a more balanced market in 2012, the average rate of annual price growth is expected to be in the mid single digits."

Summary of TorontoMLS® Sales and Average Price October 1 – 14
	2011					2010
	Sales		Average Price			Sales		Average Price
City of Toronto ("416")	1,408		$524,553			1,237		$499,740
Rest of GTA ("905")	2,069		$442,527			1,653		$400,088
GTA	3,477		$475,743			2,890		$442,742
TorontoMLS® Sales & Average Price By Home Type
		Sales					Average Price
		416		905	Total		416		905	Total

Detached		450		1,143	1,593		754,240		530,339	593,588
Yr./Yr. % Change		2%		24%	17%		3%		10%	6%
Semi-Detached		183		245	428		545,995		364,649	442,188
Yr./Yr. % Change		33%		41%	37%		11%		7%	9%
Townhouse		151		372	523		461,112		343,510	377,464
Yr./Yr. % Change		23%		18%	20%		16%		12%	13%
Condo Apartment		609		251	860		369,528		272,190	341,119
Yr./Yr. % Change		16%		22%	18%		10%		10%	10%

Source: Toronto Real Estate Board

In Toronto, the fall housing market hits a speed bump

2011-09-16T05:50:00.001-07:00

Toronto’s hot housing market may be showing the first signs of cooling as a surge of new listings arrived right after Labour Day to a lukewarm response from potential buyers.

Real estate agents say it’s too soon to tell whether buyers are losing confidence or are just slow to return from vacation as the fall market gears up.

Theodore Babiak of Royal LePage Real Estate Services Ltd. says some sellers have received multiple offers in recent weeks, but the frenzied bidding that characterized the spring market has slowed down.

“I think sellers will need to temper their expectations,” says Mr. Babiak, who detected a slight decrease in buyers’ enthusiasm in the second half of August.

Bank of Nova Scotia economist Adrienne Warren says strong price gains during the summer may be encouraging more owners to bring their properties to market.

Ms. Warren says sellers definitely had the upper hand in Toronto’s real estate market last month as listings remained tight.

Early data shows that sales jumped 24 per cent last month compared with the lethargic pace set in August of 2010. She estimates that the average price rose 10 per cent in August compared with the same month last year.

But a shift may be underway, Ms. Warren says, as the strong price gains tallied through the summer may be encouraging more owners to bring their properties to the market.

“I think sellers say ‘it’s a pretty good time to list.’ ”

Consumers, meanwhile, are feeling less buoyant according to recent surveys.

Last week’s employment report from Statistics Canada, which showed the economy shed jobs in August, may dampen confidence further, she adds.

Ms. Warren says Toronto’s real estate market has been noticeably hotter than those in other Canadian cities. Demand in Vancouver has been dampened by the lack of affordability, she adds, and that same phenomenon may discourage house hunters here.

“Affordability is certainly an issue here in Toronto,” she says.

Ms. Warren is still forecasting increasing prices on an annual basis in Toronto, but she believes those gains will slow to two or three per cent by the final months of 2011 compared with the same months in 2010.

She cautions, however, that if the jobs market deteriorates sharply, house prices may fall.

Mr. Babiak says the high end of the market has been soft in Toronto in recent months as investment bankers and other Bay Street workers worry about the outlook for financial markets and world economies.

Houses priced at less than $1-million have been snapped up quickly thus far, he says, but buyers may become more nervous.

“I would have no problem telling sellers to list sooner rather than later,” he says.

For now Mr. Babiak will continue to advise sellers with a good property to set an offer date with the hope of attracting multiple bids, he says, but sellers of houses and condos that are poorly-located or have other flaws will likely do better to take offers at any time.

“New listings will have to be priced sharply to get action,” he says.

Agent Duncan Fremlin of ReMax Hallmark Realty Ltd. says he has been called out to evaluate several potential listings but it’s too soon to tell if house hunters will retreat to the sidelines.

“The wild card in all of this is the buyers.”

He hasn’t seen signs of a cool down.

“I haven’t sensed yet that the consumer has lost confidence.”

Source: Carolyn Ireland (Globe and Mail)

CREA report could show August market turmoil affected monthly home sales

2011-09-15T06:56:00.001-07:00

Investors are bracing for word on whether August's stock market volatility put a damper on Canadian housing sales for the month.

The Canadian Real Estate Association is set to release figures for existing home sales later this morning.

Economists are expecting a 14 per cent spike in sales volumes from a year ago and say prices will rise by 7.5 per cent.

Strong housing sales in the second quarter had previously prompted CREA to revise its 2011 home sales projections upwards.

Initially, the real estate brokers group had predicted they would decline one per cent from 2010 levels.

But August was a month of wild swings on most major markets, including the Toronto Stock Exchange, and the effect on the real estate market is not yet known.

U.S. government debt negotiations and fears of an economic meltdown in cash-strapped European countries saw the TSX drop below 12,000 points and fall off more than 10 per cent from highs set in early March.

Analysts say the Canadian housing market has continued to grow despite a slowing national economy — mainly because of low mortgage rates and strong job growth, especially in western Canada.

Source: The Canadian Press

Toronto Real Estate Board plans to move ahead with password-protected sites

2011-08-21T06:26:00.001-07:00

The Toronto Real Estate Board says it's sticking to its plan to develop password protected websites, despite the federal Competition Bureau's opposition.

In its first response to an amended lawsuit filed by the federal agency, the Toronto Real Estate Board said Friday that its proposed new password protected websites that allow consumers to search Multiple Listing Service data while protecting the privacy of its customers.

"As planned, TREB has followed through on its commitment to provide realtor members with greater flexibility to serve their clients by developing a Virtual Office Website (VOW) policy," it said.

It added that consumers will be able to use those protected websites with the oversight of a realtor.

TREB accused the competition commissioner of pressuring the real-estate board to release private data about individual consumers, including contact and financial information, on the Internet.

Last month, the Competition Bureau updated its lawsuit, saying that password protected websites are still discriminatory and anti-competitive.

The amended case says the VOWs would still prevent agents from making key historical data available online.

The filing comes after TREB announced a new policy proposal last month in response to the Competition Bureau's first legal action taken against it in May.

The bureau had alleged consumers were being denied choice because while local agents were allowed to provide detailed information to customers in person or through fax or email, they were banned from doling out such information through websites.

But the bureau is not satisfied with the new policy, saying the proposed rules will continue to require customers to contact a realtor, entrenching the physical location model and discriminating against brokers who want to use the Internet.

The bureau alleges that TREB's restrictions are in violation of the Competition Act.

Source: The Canadian Press

Toronto housing prices hit mid-summer slump

2011-08-10T05:37:00.001-07:00

Toronto real estate prices have slid back to levels last seen in March, after reaching a higher average in July than the same time the previous year.

According to figures released Thursday by the Toronto Real Estate Board, the average GTA selling price in July was $459,122 -- "up by almost 10 per cent compared to the July 2010 average of $418,675," it said.

But the average GTA price peaked in May at $485,520.

The March average price was $456,147, while the January price was $427,037.

Jason Mercer, the board's senior manager of market analysis, told CTV News that they consider the year-over-year price to be a more "apples to apples" comparison.

Housing prices almost always dip each summer, he said.

"Over the last four years … every year, you've seen the price decline from the spring into the summer. Just as sales edge lower in the summer, so does price," Mercer said.

In the board's news release, it highlighted strong sales volumes last month, saying they were up 23 per cent over July 2010.

However, total sales in the first seven months of 2011 are down by 1.3 per cent compared to the same period in 2010.

"But what we're seeing is an acceleration in sales," Mercer said.

He said if the pace keeps up, the board still expects about 90,000 sales transactions in 2011, which would make it the second-best year on record.

The board released its statistics on a day when the TSX suffered its worst one-day drop since the start of the recession in 2008.

It declined by 435 points, or about 3.4 per cent, closing at 12,380.13, over fears of a slowing U.S. and global economic recovery. That follows several sessions of losses.

Mercer said economic confidence appeared diminished in the summer of 2010 over changes to federal mortgage lending guidelines, along with fears about interest-rate hikes and the impact of the HST. The new provincial tax, which is harmonized with the federal GST, came into effect on July 1, 2010, and applies to most real estate purchases.

"This year, we've seen consumer confidence remain quite strong," he said, pointing to Ontario's job numbers through to June along with positive news on income growth.

Moving into the second half of the year, it will be interesting to see if the turbulence in the equities markets hurts that confidence, Mercer said.

In the GTA market, homes remain relatively affordable, with basic expenses (mortgage, utilities, taxes) totalling about 31 to 32 per cent of household income, he said.

"That is certainly acceptable from a mortgage lending perspective, and it remains low from a historic perspective," Mercer said.

Source: Darren Calabrese / THE CANADIAN PRESS

Home prices expected to stay flat in 2012: RBC

2011-07-25T19:30:00.000-07:00

The Canadian housing market is making a transition to a much slower pace growth compared to the surge seen in the past decade, according to a Royal Bank (TSX: RY) housing market outlook.

The report released Thursday said home resales are expected to grow by 0.9 per cent this year and remain unchanged in 2012, while home prices will increase by 4.4 per cent this year and 0.4 per cent in 2012.

“Such results would mark a significant slowing relative to the performance during the 2002-2008 period,” senior economist Robert Hogue wrote in the report.

Since 2008, the transition in the housing market has been extremely volatile reflecting the impact of events both at home and abroad, it said.

Those changes include a global recession, as well as domestic policy changes — such as a sharp drop in interest rates, three rounds of mortgage rule changes and the introduction of the HST in Ontario and British Columbia.

“Our view is that less turbulent economic and policy environments will support a smoother process going forward,” Hogue said.

“The main policy shift will be one toward progressively higher interest rates, which will cool demand but not deep-freeze it.”

At the provincial level, RBC forecasts that the Alberta market will post the strongest growth in home sales this year and next, while it expects a modest decline in Quebec.

Meanwhile, “perplexing developments” in the Vancouver area, where average home prices have surged despite slower resales, are expected to be partly reversed, making B.C. the only province to see a price decline in the bank’s 2012 forecast.

Home sales have rebounded from lows reported last summer to 465,000 units in the first quarter, although they have softened to 443,000 units in the second quarter.

“This slowing is in line with our view that the latest changes in mortgage lending rules announced in January of this year and implemented in March and April brought forward some demand that would have otherwise occurred later on,” Hogue said.

“In turn, the second-quarter slowing represented somewhat of a ‘payback,’ which will then be followed by a return to mildly stronger activity.”

Source: VINCE TALOTTA/TORONTO STAR

Competition Bureau updates charges against Toronto Real Estate Board

2011-07-08T12:56:00.000-07:00

Increase text size The Toronto Real Estate Board’s attempt to appease the country’s Competition Bureau has fallen flat, with the Bureau filing updated charges that lambaste the board’s plan that would allow agents to set up private websites for their clients.

The board’s proposed policy falls short in two key areas, the Competition Bureau said, and does nothing to address its anti-competitive concerns. Real estate agents would not be able to post historical sales data on the sites, or information about commission fees offered by selling agents to agents representing buyers.

Historical sales data is a key way for buyers to gauge a home’s value, because they can see how often the property has changed hands and for how much. If consumers get all of the data on a password protected website, they could expect to pay less in commission fees.

“If the proposed rules are enacted, they will continue to prevent member brokers from operating a [website],” the revised statement of claim states. “TREB will continue to thwart the development of new, innovative, and efficient models of providing real estate brokerage services using the Internet. The proposed rules will discriminate against brokers seeking to innovate, and will constitute a further anti-competitive act by TREB.”

The Toronto board already allows real estate agents to provide a great deal of information to buyers – such as the number of days a house has been on the market and previous selling prices – in person, by telephone or e-mail, but they are not allowed to create websites where customers can look up the information on their own.

The board was quick to react after the Competition Bureau filed charges, passing a policy that would allow agents to set up the sites as long as certain guidelines were followed – the sites must be password protected, available only to clients, TREB would be able to monitor activity, sellers could opt out of having their home appear on the site and the seller's name and contact information couldn’t appear in the listings.

But without sales data or commission information, the Competition Bureau said the board hasn’t gone far enough. That’s because the Bureau wants brokers to be able to use all of the sales data generated by the board to create products that ultimately lower fees for consumers.

Any restriction on the flow of information is unacceptable, Competition Commissioner Melanie Aitken said. Real estate fees are artificially high in Toronto, she said, because brokers aren’t allowing their clients to do some of the legwork themselves.

Some brokerages in the United States offer their clients as much as 50 per cent off their commission fees if they use a website to do their own research, she said.

The real estate board’s executives have been working on a policy for its 30,000 members since last August, and met with the Bureau several times prior to the charges. Former president Bill Johnston has spoken out strongly against Ms. Aitken’s office, accusing her of using her pulpit to advance her career at the expense of the country’s real estate industry.

Friday, the board said it stood by its new policy. If the two sides can’t find a way to break the impasse, the case will go to the Competition Tribunal, which is allowed to issue fines and could issue binding resolutions to force the board to make changes if it felt the charges were warranted.

TREB president Richard Silver said the board’s main concern is that the Bureau wants it also to publish sale prices for homes that have been technically sold, but haven’t officially closed yet. That could compromise the seller’s ability to get the same price if the deal falls through, he said.

“The Commissioner is pressuring TREB to make changes to its own property listing system that TREB believes would violate consumer privacy laws, reduce the quality of the system, and diminish protection for consumers who list their homes in the Greater Toronto real estate market,” he said.

“TREB appreciates that the Commissioner has a job to do, but TREB is the wrong target. The Commissioner obviously has recognized that her initial application back in May was faulty. Instead of working with TREB to find a practical solution for consumers, the Commissioner has today decided to pursue an additional legal process that will further delay improvements and further disadvantage consumers.

Source: Steve Ladurantaye, Globe and Mail

Toronto Real Estate Board policy takes aim at competition concerns

2011-06-24T08:14:00.000-07:00

The Toronto Real Estate Board has developed a new website policy for agents in a bid to satisfy Canada's Competition Commissioner, giving agents the power to create personalized listings sites so clients can browse for houses from their living rooms.

While some of Canada’s 101 real estate boards already allow agents to set up password-protected sites for their clients, the largest board in the country does not. Agents can't rush to open sites today, though - there is a 60-day consultation period planned.

What happens next could set a national precedent for the way in which home buyers research the biggest purchase of their lives, because other boards are expected to adopt the same policy once it’s instituted.

Competition Commissioner Melanie Aitken launched a lawsuit against TREB in May, saying it prevents brokers from sharing information online with their customers . It’s the latest move in the protracted fight between the bureau and real estate agents, who have come under increasing scrutiny as commission-based payments have grown along with the price of Canadian homes.

While the Toronto board allows real estate agents to provide information – such as the number of days a house has been on the market and previous selling prices – by hand, telephone or e-mail, they are not allowed to create websites where customers can look up the information on their own.

The new policy would allow the sites to exist as long as they meet certain requirements - the site's must be password protected, only clients can use them, TREB can monitor activity, sellers can opt out of having their home appear on the sites, and the name and contact information for the sellers must never appear on the listings.

The policy is based on one adopted by the National Association of Realtors in the United States to satisfy the Department of Justice several years ago.

TREB said it has been working on the policy since last August, however, the Competition Bureau has maintained the real estate association hasn't been willing to go far enough to satisfy its concerns. Both sides met several times prior to the charges being filed.

“Consistent with the bureau's practice, we shared our concerns with TREB as well as what would be necessary to address them,” a spokesperson said. “Ultimately, it was necessary for us to seek a legally binding order from the Tribunal to ensure greater competition and increased innovation.”

Incoming TREB president Richard Silver said the policy “confirms TREB's strong belief in open competition and in its members competitive spirit, quite independent of the Competition Commissioner's claims and approach.”

The Bureau said it would rather settle the complaint prior to an appearance at the Competition Tribunal, which can issue fines and binding rulings.

Source: Globe and Mail by STEVE LADURANTAYE

May home prices rise 8.6%

2011-06-17T08:33:00.000-07:00

A hot real estate market in Vancouver helped drive home sales in Canada higher in May and push the average price was up 8.6 per cent, according to the Canadian Real Estate Association.

The average price in Vancouver, far and away Canada's most expensive market, was up 25.7 per cent to $831,555, while the number of home sales in that area was up 7.2 per cent from a year ago.

BMO deputy chief economist Doug Porter noted the Canadian housing market appears to have enjoyed a healthy spring selling season, while Vancouver marched to its own drummer.

"Quite simply, no other city in the country is seeing anything remotely close to what's unfolding in Vancouver," Porter wrote.

"In fact, many large cities have posted price declines over the past year, notably Calgary, Edmonton and Halifax."

Porter said Vancouver's average price was driven by sales of high-end homes but even so, the price of a typical home was up 6.2 per cent from a year ago at $627,000 and still the highest in the country, according to the Vancouver Real Estate Board.

The number of homes sold in Canada last month was up 2.3 per cent from a year ago, when home sales dropped off after months of heated activity. The national average price in May gained 8.6 per cent to $376,817, driven by strong gains in Vancouver and Toronto.

Excluding Vancouver, the average national price was up 5.6 per cent, while excluding Vancouver and Toronto, the national average was up 3.7 per cent.

Sales down over one month
"The Canadian housing market has seen some big ups and downs in recent years, making national sales activity so far this year look like something of a Goldilocks story by comparison — not too hot, not too cold," said Gary Morse, president of the Canadian Real Estate Association.

While sales compared with a year ago were higher, they were down slightly from the previous month. The number of homes sold in May was down 0.6 per cent from April, while the average price was down 0.1 per cent.

Housing prices have been supported by interest rates which have remained near historic lows and expectations that the Bank of Canada would raise to its key rate — which affects variable rate mortgages — later this year.

Canada's big banks have cut their residential mortgage rates in recent weeks as the weak U.S. economic recovery has put downward pressure on general borrowing costs.

The lower mortgage rates reflect the lower cost of borrowing in the bond market, where banks finance their home loan lending.

TD Bank economist Diana Petramala said Canada's home real estate market will likely remain well supported through most of 2011 by low interest rates.

"As interest rates begin to climb through 2012, a further deterioration in housing affordability will weigh on demand, and home prices are expected to fall," she wrote in a note to clients.

"That being said, continued improvements in the Canadian labour market, and only gradual increases in interest rates will help the resale housing market avoid a 'hard landing."'

Source: The Canadian Press, June 15, 2001

City can’t afford land transfer tax cut, budget chief says

2011-06-13T18:53:00.000-07:00

Toronto’s budget chief says the city cannot afford to cut the land transfer tax in the upcoming budget.

Abolishing the despised tax, which tacks on thousands of dollars to the purchase of a home, was a central promise of Rob Ford’s winning mayoral campaign last year. He pledged to wipe it out by 2012 at the latest. But, faced with a $774-million funding gap, budget chief Mike Del Grande said he does not think the administration should scrap this year a tax that brought in $274-million in 2010

“This is not the year to be looking at the land transfer tax,” he told reporters following the monthly meeting of the budget committee. “You really don’t know what the books will look like until you get in. Although a promise may be made in good faith, it’s a challenge to keep it.”

Adrienne Batra, the Mayor’s press secretary, reiterated that Mayor Ford remains committed to eliminating the land transfer tax during his term, but noted that “the fact that there is a $774-million structural deficit obviously raises some significant challenges.”

One councillor claims that the city’s money woes are not as bad as the Ford administration suggests. “I think we’re in a financial position where with a modest tax increase, and a TTC fare increase, we could make it,” said Councillor Gord Perks (Parkdale-High Park), who accused Mayor Ford of “crying wolf” and scaring residents into cutting services they count on. Mr. Del Grande (Scarborough-Agincourt) lamented that some councillors “don’t get it”.

“We are spending more than we are bringing in. That’s why we are looking at everything under the sun, including the ABCs. It’s not business as usual. We are looking at monetizing assets, labour contracts, user fees. I am doing my best to ensure that the pain is spread evenly,” said Mr. Del Grande.

Source: National Post (Natalie Alcoba With files from Peter Kuitenbrouwer)

Real estate sales dip but prices continue rise

2011-05-18T03:54:00.001-07:00

Canadian home prices continued their upward march in April, driven by strong investor demand in Vancouver, while cracks in the Toronto condominium market may be starting to appear.

The Canadian Real Estate Association said Tuesday the average price of a home sold in April across the country was $372,544, up eight per cent from a year ago. It was the third straight month that the average price rose eight per cent on a year-over-year basis but the Ottawa-based group cautioned that the figure was skewed due to "surging multimillion-dollar property sales in selected areas of Greater Vancouver."

The group also shrugged off slow April sales figures that saw activity dip 4.4 per cent from March on a seasonally adjusted basis and 14.7 per cent on an actual basis from a year earlier.

The slow sales are said to have been driven by new mortgage rules that came into affect April 19 and made it tougher to borrow, leading people to rush into purchases in March.

The same sort of impact was felt in April 2010 as people moved their pur-chases forward to avoid the mortgage rule changes at the time, fear of higher interest rates and the looming implementation of the HST in two provinces.

"This makes it difficult to compare," said Gregory Klump, chief economist of CREA. "Changes to mortgage regulations that took effect in April 2011 likely sidelined a number of firsttime homebuyers. By contrast, higher end homes sales in Vancouver and Toronto had their best April ever."

Greater Victoria sales slid by a seasonally adjusted 6.7 per cent in April from March, beating out the national average of 4.4 per cent. A total of 457 homes changed hands in the capital region last month, down from 490 in March.

On a non-seasonally adjusted basis, Greater Victoria homes sales dropped by 23.7 per cent to 540 last month from 708 in March.

The average seasonally adjusted sale price of a home in the capital region rose 1.2 per cent monthover-month, to $498,536, from $492,807. But if the numbers are not seasonally adjusted, the average price decreased slightly, by two per cent, to $508,005 in April from $518,536 in March.

Worries about the sustainability of the housing market could be stoked by a report from Urbanation Inc., which monitors the Toronto condominium market. The group says more than 50 per cent of condominiums sold in the past year were purchased by buyers who do not intend to occupy their units and plan to rent in many instances.

Condominium rents in Toronto in the first quarter of 2011 were $2.11 per square foot compared to $2.09 a year earlier, a 0.8 per cent increase. Condominiums being registered now and ready to be occupied are priced for sale in the $450-per-square-foot range while newer units are going for $550 per square foot.

"What happens when these newer units hit the market?" said Ben Myers of Urbanation. "At $550 per square foot, a 750-squarefeet [condo] is $413,000. You put 25 per cent down and you have a mortgage of $310,000. Take a five-year variable mortgage at three per cent with 25-year amortization and you get $1,475 a month mortgage. Your condo fee is $345, property tax is $345 and you are up to $2,200 in carrying costs.

That's a huge [operating] loss," given the average rental rate would bring in just under $1,600 a month, he said.

Source: The Victoria Times Colonist

New house prices flat in March

2011-05-15T07:03:00.001-07:00

The New Housing Price Index was unchanged in March following a 0.4 per cent advance in February.

Statistics Canada reports monthly increases in some cities were offset by decreases in others, resulting in no change to the national index.

Prices rose the most in Saint John, Fredericton and Moncton, N.B. (up 0.4 per cent) between February and March.

They were followed by Toronto and Oshawa, Winnipeg and Regina (all three registering increases of 0.3 per cent).

The most significant monthly price decreases were recorded in Quebec City (down 0.7 per cent), Windsor (down 0.6 per cent) and Edmonton (down 0.2 per cent).

Year over year, the index was up 1.9 per cent in March after a 2.1 per cent increase in February.

Source: OTTAWA— The Canadian Press

Vacancy rate down as office real estate recovers from recession

2011-04-12T16:48:00.000-07:00

Toronto’s office space market is brushing off the remaining signs of recession as vacancy rates start to lower in the downtown core, a new report says.

According to Colliers International’s semi-annual report released Tuesday, the GTA’s average vacancy rate inched down over the past six months to 6.4 percent. Meanwhile, the availability rate in the downtown core also decreased from 10.3 percent at its peak in 2009 to a pre-recession level of 9.1 percent.

“These are signs of solid recovery and the resiliency of the Toronto office market,” said John Arnoldi, managing director with Colliers International in Toronto.

He pointed out that three new office buildings – the Telus tower, RBC tower, and the Bay And Adelaide centre – that have cropped up in the city are full.

“The city waited nearly 14 years for a new tower and these came up during the recession and were still occupied,” Mr. Arnoldi said. “Toronto’s skyline has been changing dramatically and there are definitely more on the horizon.”

The downtown and mid-town areas are recording lower vacancy rates at 5.7 per cent and 4.8 per cent respectively.

“There was a concern that with the global meltdown, many downtown financial services would move back their offices into the suburbs,” Mr. Arnoldi said. “But if anything, we’re seeing them re-entrenching in the downtown core.”

The trend of recovery can also been seen in Montreal, according to Colliers International.

“Market fundamentals and industry players all indicate that the Greater Montreal Area office market is on a path to recovery,” said Andrew Maravita, managing director with Colliers International in Montreal notes. “If the macro-economic conditions continue to improve, after a few years of drought in terms of new inventory, the vision of cranes in Montreal’s skyline is a realistic expectation.”

It’s not just a Toronto and Montreal success story, said Cushman & Wakefield, another real estate broker consultancy group.

“What’s really neat is this is Canada-wide story,” said Stuart Barron, national director of research at Cushman & Wakefield. “There are rumours on the streets of the new developments in at least four major cities – and in Toronto, you could expect to hear announcements of at least three more developments.”

Colliers also reported the GTA industrial real estate market also experienced a rebound, with more than 16 million square feet of industrial space sold over the past six months and nearly matching the total transaction volume of 2009.

However, while Mr. Barron agreed that downtown Toronto is showing a strong recovery, it’s not a trend that is necessarily reflecting in the GTA suburbs.

“The GTA is really a tale of two cities,” he said. “Suburban markets continue to feel the brunt of the recession. Downtown, on the other hand, has seen unprecedented demand.”

He attributes the suburban market’s slower recovery to a greater connection to U.S. businesses.

“Suburban markets saw shockingly weak demands over the last two years,” Mr. Barron said. “The GTA west [area] had average demand strength of zero and that in the history of the GTA west, they’ve never seen.”

Source: TAMARA BALUJA Globe and Mail Update

Hidden fees hike cost of new homes in GTA by as much as 30 per cent

2011-03-20T05:12:00.000-07:00

New home buyers in the GTA are being saddled with hidden fees that threaten to price buyers out of the market, with as much as 30 per cent of the purchase price going directly to government coffers.

But the construction industry is pushing back, saying the municipalities’ appetite for development charges could derail the new-housing market by driving the average price beyond the means of most buyers just as interest rates are about to move higher.

The charges have more than doubled in the past five years in many communities around the Greater Toronto Area, according to a pair of reports from the industry that will be released on Thursday.

Development fees are levied to raise the money for the municipality to provide infrastructure – such as roads and sewers – to support the housing. However, the cities have also funneled some of the cash toward projects such as libraries and community centres, which developers say have little to do with the actual construction of a house.

Homebuilders – who have become increasingly vocal in their critique of government policy as the new-housing market shows signs of cooling – said governments have been able to pile costs on consumers over the past several years because interest rates have been low and homes have been relatively affordable.

But with interest rates set to move higher in the next year and more buyers conscious of costs, they said, the full effect of a decade of rising fees could sideline an industry that has been crucial to the region’s economic health.

“Municipalities have increasingly looked to development charges for additional revenue because these costs are indirect and hidden,” states a report by the Residential and Civil Construction Alliance of Ontario.

The report estimates that home buyers in Oakville pay an average $50,548 in development charges, with most cities surrounding the City of Toronto charging between $30,000 and $50,000 for each new home built. Toronto’s average take is $12,281 per house, with development charges set to rise this year after a two-year freeze.

“We’re in a different position in the City of Toronto because we aren’t building large subdivisions and most of the infrastructure for new homes is already built,” said special projects director Joe Farag.

In Vancouver, development charges average $23,418. In Calgary, they are $7,475.

These figures don’t include the additional costs added by the federal goods and services tax, or additional charges brought on by the new harmonized sales tax in Ontario and B.C. With those factored in, a report from the Residential Construction Council of Ontario estimates that 30 per cent of a new GTA home’s cost is now determined by government charges. Canada Mortgage and Housing Corp. estimates the Canadian average is 13.4 per cent.

Oakville Mayor Rob Burton said the city charges developers the maximum amount allowed under provincial legislation because development fees haven’t covered the cost of growth in more than a decade. “Mike Harris gutted them in 1997,” he said.

“So local property taxpayers subsidize billionaire developers whose subdivisions make higher profits by not paying for the hospitals, transit and other infrastructure they require,” he said. “Oakville’s council is proud to have development charges that capture the maximum permissible amount of the costs of growth.”

The builders agree that the shifting of some provincial responsibilities to the municipalities led to rapidly escalating fees in the GTA, but say they should not have to bear the brunt. The president of the Canadian Homebuilders Association said builders can’t simply absorb the costs, because their margins have never been thinner.

“Profit is not a dirty word,” said Vince Laberge. “Politicians need to raise property taxes instead of having a social agenda funded by the new home buyer.”

The reports recommend the province pay a greater share of the cost of municipal infrastructure such as fire stations and libraries, and provide more transit funding, and that municipalities implement user fees in place of development charges wherever possible. If not, they warn, development could be reduced in coming years.

Source: STEVE LADURANTAYE — REAL ESTATE REPORTER
From Thursday's Globe and Mail
Published Thursday, Mar. 10, 2011

Housing sales this year to come in 15 per cent lower than 2007 peak: Scotiabank

2011-03-03T07:30:00.001-08:00

Canadian real estate sales this year are expected to come in about 15 per cent below their peak in 2007 but will hover close to the 10-year average, according to a home sales report from Scotiabank.

The bank's Global Real Estate Trend report released Tuesday said the housing market should remain relatively balanced between both buyers and sellers throughout the year.

Momentum will be strongest in the first half of the year as anticipated higher interest rates and tighter mortgage lending rules contribute to softening later in the year, said Scotiabank senior economist Adrienne Warren.

"Market conditions are expected to remain fairly balanced, favouring sellers to some degree in the spring, and buyers by the fall. This, in turn, suggests relatively steady prices, but with more downside risk later in the year," said Warren.

The broad economic factors supporting housing demand — historically low interest rates and steady employment growth —remain in place for further gains. However, sales will edge down this year and into 2012 as demand modifies following the record-breaking housing boom of the past decade.

"Ownership rates are now reaching both a cyclical and structural peak, given inevitably higher borrowing costs, more moderate medium-term growth prospects and more restrictive mortgage product offerings," she said.

One of the major changes beginning this month is a shortening of the maximum amortization period from 35 years to 30 years — adding about $100 per month to the average mortgage payment.

That could have the effect of pricing some first-time buyers out of the market, or at least forcing then to opt for a less expensive home, Warren said.

"Coming on the heels of earlier mortgage-tightening measures implemented in October 2008 and April 2010, this latest round of regulatory changes will have at least some dampening impact on credit demand, home sales and prices," she wrote in the report.

This year's market is expected to follow a similar pattern to the housing activity seen last year.

A powerful driver of economic recovery, the real estate market kicked off last year on a tear as buyers rushed into the market in advance of higher interest rates, new mortgage rules and a new harmonized tax regime in two provinces.

But sales moderated in the second half of the year as a string of modest interest rate hikes, along with the new rules and sales tax took their toll on demand.

The Bank of Canada announced Tuesday it will stick with its ultra-low interest rate policy of one per cent for now, but most economists suggest it will have to raise rates soon in order to ward off inflation.

Any increase would raise variable mortgage rates and any other loans tied to banks' prime rates.

Warren warns that rising mortgage rates, combined with low household incomes and high home prices will strain affordability and further reduce sales.

The report suggests that the number of unsold new homes is higher than average after builders raced to catch up to demand amid the post-recession boom.

"Combined with more muted sales expectations and potentially some slowing in household formation rates, this points to a lower level of sustainable starts over the next few years," it said.

Canada Mortgage and Housing Corp. predicted last month that between 157,000 and 192,000 new housing units will be built this year, with the number remaining virtually the same in 2012.

In its first-quarter housing market outlook, released Thursday, it said economic growth and lower unemployment will prop up the need for new homes.

Housing sale data from February won't be released until mid-March, but the Canadian Real Estate Association projected activity in the resale market likely picked last month in advance of the new mortgage rules coming into effect March 18.

About 42,379 homes were sold on CREA's Multiple Listing Services in January across the country, up 4.5 per cent from the 40,558 sold in December.

Source: By Sunny Freeman, The Canadian Press

Commercial real estate deals up 48%

2011-02-16T05:58:00.000-08:00

Toronto led other Canadian cities in the value of commercial real estate deals last year, growing by 93 per cent to $7.4 billion. (CBC)

The value of commercial property transactions across Canada soared by 48 per cent last year to $18.9 billion, real estate firm CB Richard Ellis said Monday.

CBRE said the hike was driven by a strengthening economy and surging investor confidence.

CBRE's 2010 National Investment Report found that the volume of commercial deals grew in every market expect for London, Ont.

Transactions in Toronto shot up the most, growing by 93 per cent, with $7.4 billion in trades, up from $3.8 billion in 2009.

Last year's total soared past the $12.7 billion seen in 2009 and approached pre-recession, 2005 levels when $19.8 billion of commercial property changed hands.

By year-end, the number of commercial transactions reached 4,589, up by more than 18 per cent from the 3,872 transactions in 2009.

The report predicts that this year transaction volumes will be strong, but the values of individual deals will likely be smaller.

Source: CBC.ca with files from Canadian Press

Canadian real estate market to resemble 2010: report

2011-01-10T06:08:00.000-08:00

TORONTO — The Canadian real estate market will follow a similar pattern this year as that seen in 2010 as buyers pull sales forward into the early months in anticipation of higher interest rates, according to a report from one of Canada's largest real estate firms.

The aftershocks of the recession, including a lingering low interest rate environment, will continue to influence the Canadian real estate market in 2011 -- a year that will be stronger than expected, said the report released Thursday by Royal LePage.

Royal LePage predicts that average home prices will rise three per cent to $348,600 in 2011, driven largely by a rush to buy in the first half of the year in advance of anticipated interest and mortgage rate hikes in the second half.

"Canadians realize that interest rates are unsustainably low and that homes will become effectively more expensive when mortgage rates return to normal levels," said Phil Soper, president of Royal LePage.

"2011 is expected to unfold much like 2010, when close to 60 per cent of sales volume occurred in the first half of the year in anticipation of interest rate increases that never materialized."

However, the number of transactions will be slightly lower than last year and activity will be modestly closer to the norm because the pull forward phenomenon last year was exacerbated by a tightening of mortgage qualification rules and the introduction of the HST in Ontario and British Columbia in the middle of the year.

Soper said the extension of low mortgage rates will be an unexpected boon to the market this year.

"Like many Canadians, we anticipated an end to the ultra-low interest rate era before year-end 2010," he said.

"Paradoxically, global economic weakness, particularly in the United States, allowed policy-makers and financial institutions to keep borrowing costs low, resulting in a stronger Canadian housing market and a better than forecast fourth quarter."

Average house prices rose between 3.9 per cent and 4.6 per cent in the fourth quarter of 2010, while price appreciation is expected to continue a moderate and steady climb throughout the current year.

The report contrasts with some recent predictions by economists that prices should remain flat or decline over the next year.

The Canadian Real Estate Association has predicted prices will fall by 1.3 per cent to a national average of $326,000, this year, tied to weakness in British Columbia and Ontario -- the hottest real estate markets of 2010. It has also forecasted a nine per cent decline in sales.

CREA has yet to release year-end data for 2010, but preliminary reports from two of the biggest markets, Toronto and Vancouver, released this week indicate 2010 declined as expected.

Sales were down by one per cent compared with 2009 in Toronto, while the average home selling price was $431,463, up nine per cent from 2009.

In Vancouver, sales declined 14.2 per cent from 2009, and were 10.3 per cent below the 10-year average for sales in the region. The average selling price in B.C.'s largest city was up 2.7 per cent at $577,808.

Canada's real estate market has been on a rebound over much of the past year after sales dried up in late 2008 and hit a multi-year low in January 2009.

The housing market's sudden plunge was sparked by a credit crunch that developed in the U.S. housing and lending industries, and gradually spread across the globe, causing a worldwide recession in the late summer and early fall of 2009.

The commercial real estate market experienced a similar plunge as investors lost confidence in the sector.

However, the commercial market, which includes office and retail spaces, had a stronger than expected year in 2010 and that momentum is projected to strengthen throughout 2011, according to a report released Thursday by CB Richard Ellis Ltd.

Some market observers had predicted a glut of vacancies in Canada's major business centres, but that didn't happen, said John O`Bryan, vice-chairman of CB Richard Ellis Canada.

We`ve had good news over the past twelve months with respect to interest rates, housing trends and employment gains, with many companies announcing plans for expansion, he wrote in the report.

"2011 may well be another good, stable year but should be viewed with cautious optimism in light of the concentration in employment growth on part-time jobs rather than the full-time positions that indicate confidence in long-term, sustainable growth."

Source: The Canadian Press (Jan 06, 2011)

Home sales rise in November for fourth straight month

2010-12-16T07:35:00.001-08:00

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

Ontario REALTORS support grow ops registry bill

2010-11-25T13:10:00.000-08:00

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

New home prices up across Canada

2010-11-12T19:42:00.001-08:00

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)

CREA to allow flat-rate listings

2010-10-25T12:37:00.001-07:00

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)

GTA resale home prices up in September

2010-10-05T10:32:00.000-07:00

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)

Toronto home sales cooling off

2010-09-17T05:49:00.001-07:00

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

Toronto home resales drop in August

2010-09-03T19:28:00.000-07:00

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

More signs the Toronto housing market is cooling off

2010-08-05T10:32:00.001-07:00

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)

Market More Balanced in June

2010-07-30T09:29:00.001-07:00

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

Toronto existing home sales fall by 23 per cent in June

2010-07-06T12:57:00.000-07:00

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)

Shine comes off housing boom

2010-06-03T16:35:00.000-07:00

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

April Experiences Record Number of Buyers and Sellers

2010-05-17T10:32:00.000-07:00

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

Greater Toronto REALTORS® report Mid-April Resale Market Figures

2010-04-23T06:19:00.000-07:00

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

New rules for rental properties could squeeze first-time homebuyers

2010-04-05T06:37:00.000-07:00

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

Canadian real estate too pricey: survey

2010-04-04T06:44:00.001-07:00

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

GTA new home sales in February best since 2006

2010-03-22T11:02:00.000-07:00

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

MID-FEBRUARY RESALE HOUSING MARKET FIGURES

2010-03-01T11:00:00.000-08:00

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

Toronto existing home sales skyrocket 87 per cent

2010-02-03T21:05:00.000-08:00

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

GTA's office vacancy rate rises

2010-01-13T18:20:00.000-08:00

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

In Toronto, a hot market has some bidders feeling burned

2009-12-04T07:19:00.000-08:00

The remarkable resurgence in Toronto's housing market this fall has some buyers wondering if it's time to push ahead into real estate or retreat to the sidelines for a spell.

The latest figures from the Toronto Real Estate Board show that sales in the first two weeks of November in the Greater Toronto Area skyrocketed 84 per cent from the dismal level recorded at the same time last year.

The average price jumped 10 per cent to $415,066 from $375,712.

Robert Kavcic, an economist with BMO Nesbitt Burns, finds it interesting that the monumental rebound in home sales and prices in Canada has come despite the fact that house prices are no great bargain.

He points out that most affordability measures, which take things such as mortgage rates, house prices and disposable income into account, barely got back to average levels before the market hit bottom early this year.

Mr. Kavcic says some people are negotiating mortgages below posted rates, so that makes housing more affordable than it seems on the surface. At the same time, more people are opting for a mortgage amortized over a longer term than the traditional 25 years.

When the term stretches to 35 or even 40 years, a buyer who is only concerned about today's cash flow can go out and spend a lot more for a house. That trend pushes prices up in turn.

Lee Taylor of Bosley Real Estate Ltd. says buyers and sellers are all anxious to know what will happen in the housing market. She does her best to help them plot out a strategy based on their circumstances, but those factors change with each client.

Many of her clients look at real estate as a long-term investment, she points out, and no one can predict with any accuracy what the near term will bring.

“We never know the market around the corner.”

Sales are brisk at every price range, Ms. Taylor says.

She recently undertook some research for a client interested in the area of Bayview and Sheppard avenues.

Last year at this time, she says, sales of houses priced at $1-million to $1.5-million in that area were stagnating. In November of 2009, that tranche is very busy.

In the case of Toronto condos in the range of $350,000 to $400,000, for example, she says that sales are brisk. If a unit is particularly appealing, it's flying with multiple offers.

She's advising buyers looking in that segment to be patient.

“I've basically told them to wait for a snowstorm.”

Ms. Taylor says some purchasers have become weary of the bidding wars and are stepping back from the search for a bit. In some cases, potential buyers have lost out on a couple of properties and feel bruised by the competition.

“They're very draining. They're draining for everybody,” she says of the contests.

Ms. Taylor says some of the factors she will be watching for in the coming months and farther into 2010 include the planned harmonized sales tax in Ontario, the stability

of interest rates and the number of new listings in the spring.

As economists Craig Alexander and Grant Bishop at Toronto-Dominion Bank point out in a recent report, the breakneck pace of house sales is at odds with the sputtering of the overall economy.

As a result, real estate is overshooting the slowly emerging economic improvement, and the economists say the Bank of Canada will be keeping a careful eye on the action.

The economists stress that the Bank of Canada does not set a target for the value of assets such as houses and condos specifically, but it does watch how quickly consumer prices are rising.

For the moment, the central bankers figure that the recent resurgence in real estate is temporary. But if the frantic pace does not cool down in the coming year – or if price growth accelerates – that could lead the central bank to raise interest rates sooner and more sharply than many people are expecting right now.

But as long as unemployment is still rising, the Canadian dollar is appreciating and exporters are struggling, the central bank won't rush to raise rates, they say.

Looking ahead, Mr. Alexander and Mr. Bishop expect house sales and core inflation to moderate, which will help the Bank of Canada keep interest rates low.

Source: Globe and Mail by Carolyn Ireland Published on Thursday, Nov. 26,

TREB Reports Strong Growth in October MLS Transactions

2009-11-05T06:48:00.000-08:00

n October 2009, Greater Toronto REALTORS® reported
8,476 sales, up 64 per cent from October 2008. The average price for October
transactions was $423,559 – up by 20 per cent compared to the same month last year.

"Strong sales growth has occurred across many property classes – from price ranges
that would attract first-time buyers to luxury properties selling for over one million dollars," said TREB President Tom Lebour. “The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales declined at an above-average rate last year.”

Year-to-date sales, at 74,721, were up nine per cent compared to the first ten months of 2008. Average price, at $392,264 was up by almost three per cent.

"After a short dip in the winter, the average home price in the GTA has rebounded
because sales have been high relative to listings," according to Jason Mercer, TREB's Senior Manager of Market Analysis. “Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year.”

Summary Of October Sales And Average Price

October
2009 2008
Average
Sales Price Sales Average Price
City of Toronto ("416") 3,554 $464,212 2,136 $376,897
Rest of GTA ("905") 4,922 $394,205 3,019 $336,049
GTA 8,476 $423,559 5,155 $352,974

Source: Toronto Real Estate Board

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

October Mid-Month Housing Statistics

2009-10-21T06:53:00.000-07:00

In the first two weeks of October, Greater Toronto
REALTORS® reported 3,631 sales – up 34 per cent compared to the first two weeks of
October 2008. The average price for these transactions was up 17 per cent year-overyear to $414,479.

"While demand for existing homes has remained strong, it is important to recognize the context of current statistics. We are now making comparisons to the fall of 2008 when we experienced a marked decline in sales and average price," said TREB President Tom Lebour. Year-to-date sales, at 69,964 are up six per cent compared to 2008. Average price, at $389,687, is up by two per cent.

"Tight market conditions throughout the GTA will continue to exert upward pressure on home prices in the fourth quarter," explained Jason Mercer, TREB's Senior Manager of Market Analysis. “Expect more listings in 2010 as home owners react to the price gains experienced in the second half of 2009.”
Summary Of October Sales And Average Price
October
2009 2008
Sales Average Sales Average
Price Price
City of Toronto ("416") 1,489 $455,001 1,140 $375,804
Rest of GTA ("905") 2,142 $386,311 1,560 $337,671
GTA 3,631 $414,479 2,700 $353,772

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

Almost 600,000 Square Feet Leased In August

2009-10-03T06:47:00.000-07:00

TREB Members reported 571,751 square feet of
leased space, down 31% from the 830,317 square feet recorded in August of 2008, Commercial Council Chair Garry Lander announced today.

“The amount of leased space continues to be lower than last year’s levels as companies are waiting to re-negotiate current leases or negotiate agreements on new space until they are more confident as to when economic recovery will take hold,” Mr. Lander noted. “The outlook on the economy will determine availability and pricing.”

Rental rates for IC&I properties were mixed compared to year-ago levels. Industrial space (all size categories) leased for $5.20 sfn, down 9% from the $5.70 recorded in August of 2008. Commercial space traded for $19.75 sfn, up 4% from the $18.98 figure seen during the same month last year. Finally, office space traded for $12.34, up 3% from the $11.98 sfn figure recorded during August, 2008.

Sales Market Highlights

TREB Members recorded 50 sales of IC&I properties in June, including 24 industrial buildings of all size categories which averaged $91.66 per square foot. This compare to the $66.97 per square foot obtained from non-MLS sources.

For a complete copy of the Commercial Realty Watch visit www.TREBCommercial.com

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.

Source: Toronto Real Estate Board

GTA REALTORS® Report August Mid-Month Resale Market Figures

2009-09-01T11:48:00.000-07:00

In the first two weeks of August, Greater Toronto REALTORS® reported 3,832 sales – up 27 per cent compared to the first two weeks of August 2008. The average price for these transactions was up three per cent year-over-year to $383,796.

"The results for the first half of August indicate that many households in the GTA remain confident in their ability to purchase and pay for a home over the long term," said TREB President Tom Lebour.

Year-to-date sales, at 54,303 are up slightly compared to 54,138 in 2008. Average price, at $385,603 is down by less than one half of one per cent.

"Strong resale housing demand will contribute to broader economic recovery as each transaction results in substantial spin-off benefits to other sectors of the economy," explained Jason Mercer, TREB's Senior Manager of Market Analysis.

Summary Of August Sales And Average Price

August
2009 2008
Sales Average Price Sales Average Price
City of Toronto ("416") 1,465 $391,252 1,192 $394,563
Rest of GTA ("905") 2,367 $379,181 1,827 $360,326
GTA 3,832 $383,796 3,019 $373,844

Source: Toronto Real Estate Board

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

GTA REALTORS® report resale record in July

2009-08-11T10:11:00.000-07:00

In July 2009, Greater Toronto REALTORS® reported a record 9,967 sales, up 28 per cent from July 2008. The average price for July transactions was $395,414 – up by six per cent compared to the same month last year.

"Households confident in their positioning within the current economic environment have taken advantage of housing affordability in the GTA," said TREB President Tom Lebour. "The real estate sector has been one of the sectors making a positive contribution to economic growth in the GTA, not to mention Ontario and Canada more broadly."

Year-to-date sales, at 50,632 are down 1.2 per cent compared to the first seven months of 2008. Average price, at $385,808 is down by less than one-half of one per cent.

"The steep drop-off in sales experienced at the beginning of the year has all but dissipated," explained Jason Mercer, TREB's Senior Manager of Market Analysis. "With five months left to go in the year, it is probable that total existing home sales in 2009 will be at or above last year’s level."

Summary Of July Sales And Average Price

July
2009 2008
Sales Average Price Sales Average Price
City of Toronto ("416") 3,880 $421,110 3,132 $395,343
Rest of GTA ("905") 6,087 $379,035 4,674 $355,401
GTA 9,967 $395,414 7,806 $371,427

Source: Toronto Real Estate Board

For a complete copy of the Market Watch Report visit www.TorontoRealEstateBoard.com

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

Over 500,000 Square Feet Leased In June

2009-08-04T16:18:00.000-07:00

Last month, TREB Members reported 560,425 square feet of
leased space, in comparison to the 1,017,518 leased square feet recorded in June of 2008, Commercial Council Chair Garry Lander reported today. “The pace of activity remains below last year, in line with the performance of the general economy,” Mr. Lander noted.

Prices were mixed in June. Industrial space in all size categories leased for $4.79 sfn, down 17% from the $5.78 recorded in June 2008. Commercial space traded for $13.47 sfn, down 20% from the $16.75 figure seen during the same month last year. Finally, office space traded for $14.69 , up 24% from last June’s $11.81 sfn figure, a possible indicator that higher quality office space is being listed on the MLS in the face of a challenging market.

Sales Market Highlights

TREB Members recorded 59 sales of IC&I properties in June, including 28 industrial buildings of all size categories which averaged $82.91 per square foot This compares to the $65.26 per square foot obtained from non-MLS sources.

For a complete copy of the Commercial Realty Watch visit www.TREBCommercial.com

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.

Source : Toronto Real Estate Board

Condo resales are on a roll

2009-06-19T07:17:00.000-07:00

The new-condo market may be just starting to warm up again but the resale market is hot, according to May statistics from the Toronto Real Estate Board (TREB). In fact, condo resales, at 2,081 units in May, were up about 2 per cent from the same month a year earlier.

Condo resales are again moving in lockstep with single family homes and townhouses.

In May, total Multiple Listings Service (MLS) condo sales were 4,561 units in the Greater Toronto Area, compared with 4,422 in May last year – a 2 per cent increase.

The average selling price for all MLS sales (including both houses and condos) was $399,811, down a touch from $400,817 last year.

While condo resales were up, listings were down, says Jason Mercer, senior manager of market analysis at TREB. The upshot is that more buyers than sellers means resale condos are moving with great speed – often as little as a week on the market – and the best ones are drawing multiple offers.“Sellers here in Mississauga are getting between 85 per cent and 105 per cent of the listing price,” says Debbie Cosic of Sutton Group Signature Realty Inc. of Mississauga. “In highly sought after areas like Lorne Park just north of Lakeshore Road and Mineola, near Highway 10 and the Queen Elizabeth, you will see three or four offers and suites moving within a week, often at more than the asking price.

“Calls to our office are up 60 per cent from March and showings of properties are up about 60 per cent as well.”

In the City of Toronto, downtown west (the area west of University Avenue to Dufferin between Lakeshore Boulevard and Bloor) leads the action, says Brad Lamb of Brad J. Lamb Realty Inc. “Those leading all the activity are first-time buyers and move-up buyers,” he says. “Both are taking advantage of terrifically low mortgage rates, and the move-up buyers are finding they can easily sell existing condos at a good price.”

Now about prices: TREB says the average condo price in March was $266,958, which is down about 4 per cent from last year. But while that may look great on paper, average price figures can be misleading, says Mr. Lamb.

In May, the softest sector of the market was anything selling for $1-million and up. Take away the impact of those sales on average prices and you are likely to find that resale condos are actually pricier than they were last year and quietly ticking upwards.

“I sold a suite in March for $245,000. In May, I sold the very same design, in the same building but on a lower, less desirable floor, and it went for $260,000,” says Mr. Lamb.

So what is moving? Suites priced at less than $400,000, says Ms. Cosic and especially those in the $250,000 to $300,000 range. Why? One of the chief factors is the availability of mortgage money at extraordinarily low rates.

“You can get a variable-rate mortgage for as low as 1.75 per cent if you have great credit,” she says. “That means a buyer can snap up a $400,000 condo and wind up paying about $600 a month in mortgage payments.”

Mortgages insured by the Canadian Mortgage and Housing Corp. also make it easy for first-time buyers to pick up a resale condo with just 5 per cent down, although conventional mortgages will demand a 15-per-cent to 30-per-cent down payment to close a deal.

For sellers, establishing the right listing price is crucial for a quick sale, Ms. Cosic says.

“A year ago, if your neighbour got $299,000, you might list your suite for 26 per cent more,” she says. “Not in this market. List it for $299,000, the same as an identical suite, and you will probably draw multiple offers in a week or two.”

Finally, what does the summer hold for buyers and sellers? There's likely to be continued strong demand for resale condos and probably higher prices, says TREB's Mr. Mercer.

Mr. Lamb agrees. The fears about job security, which gripped buyers last fall, are starting to subside, he says. Many singles and young couples who put off home-ownership plans through the fall, winter and spring now see opportunities for great deals at reasonable prices. Low mortgage rates are a strong incentive to buy now lest they start to rise in the fall.

“Resale buyers are a breed apart from those who buy new condos,” he says. “They don't want to wait two or three years. Their personal circumstances demand they buy now.

“What they see all around them is the perfect time to act.”

Source: Terrence Belford
From Friday's Globe and Mail, Friday, Jun. 19, 2009 03:54AM EDT

GTA May Resale Housing Sales Higher Than Last Year

2009-06-11T13:02:00.000-07:00

In May 2009, Greater Toronto REALTORS® reported 9,589 sales,
up almost two per cent from May 2008 – the first annual increase since December 2007. The seasonally adjusted annual rate of sales in May was 81,3001.

“The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill. “Many home buyers have taken advantage of extremely low mortgage rates.”

The average price for May transactions was $395,609 – down less than one per cent compared to the same month last year.

“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales have increased strongly relative to new listings, bolstering home prices.”

SUMMARY OF MAY SALES AND AVERAGE PRICE -2009/2008

May 2009
2009 2008
Sales Average Price Sales Average Price
City of Toronto ("416") 3,777 $432,478 3,711 $434,271
Rest of GTA ("905") 5,812 $371,649 5,700 $374,629
GTA 9,589 $395,609 9,411 $398,148

Source:TorontoReal EstateBoard

1Seasonally adjusting TREB MLS® data removes recurring seasonal trends observed each year. For example, MLS® sales are highest in late
spring each year and lowest in the winter months. Removing the recurring seasonality, allows for the analysis of a meaningful trend reflecting
actual changes in market conditions. By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how
the current month relates to historical annual figures.

For a complete copy of the Market Watch Report visit www.TorontoRealEstateBoard.com

Source: Toronto Real Estate Board

Greater Toronto Resale Housing Sales Up in First Half of May

2009-05-25T06:25:00.000-07:00

Greater Toronto REALTORS® reported 4,561 transactions in the
first half of May – an increase of three per cent compared to May 2008.

“Members reported a rise in buying activity this month,” said TREB President Maureen O’Neill. “Many home buyers who were undecided about purchasing a home during the winter months are now proceeding with confidence as a result of the GTA housing market's affordability.”

The average price for MLS® sales was in line with last year, down by less than one-half of one per cent at $399,811.

“More sales and fewer listings resulted in tighter market conditions which pushed the average selling price back up to last year's level,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “Look for new listings to increase as home owners react to the positive news surrounding home sales and prices.”

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

Municipal Politicians to Discuss Taxes on Property in the GTA at Toronto Real Estate

2009-05-12T09:27:00.000-07:00

A number of prominent municipal politicians, including Mississauga Mayor
Hazel McCallion, will take part in a panel discussion about municipal finances and taxes on property in the Greater Toronto Area on May 6th at the Toronto Real Estate Board’s annual REALTOR® Quest conference and trade show at Toronto Congress Centre.

Moderated by AM640’s morning show host John Oakley, the panel will also include Mayor Frank Scarpitti from the Town of Markham where property taxes were recently frozen and City of Toronto Councillors Denzil Minnan-Wong, Karen Stintz and Michael Thompson.

“TREB has actively lobbied in recent years on a number of key issues that erode affordability for the average homeowner in our city, like the Toronto Land Transfer Tax and proposed harmonization of the GST and PST,” said TREB President Maureen O’Neill. “This is an exciting opportunity to hear from some of the key players on where we are headed with taxes on property in the Greater Toronto Area.”

The discussion takes place May 6th at 2 p.m. on Centre Stage.

The two-day conference also includes a number of other key attractions, like Canada’s most trusted contractor Mike Holmes. He will pay a visit to REALTOR® Quest’s Centre Stage May 7th from 2 p.m. to 3 p.m.

Holmes and his crew recently constructed a sustainable home as part of Brad Pitt’s Make it Right project in New Orleans’ Ninth Ward. Currently, Holmes is developing his first community, Wind Walk in Southwest Alberta, which is expected to set a new standard for residential construction and design with its eco-friendly, sustainable homes.

TREB’s Spring General meeting will take place during REALTOR® Quest on May 6th from 10 a.m. to 12:30 p.m. REALTOR® Quest also features Canada’s largest real estate trade show with up to 250 exhibitors. Given that REALTORS® are required to continuously upgrade their education, the conference also features 30 complimentary Continuing Education courses in seven different streams.

“Greater Toronto REALTORS® look to this conference as a source of information on all of the latest tools and trends in the profession,” said Ms. O’Neill. “Their participation is just one example of REALTORS’® commitment to continuously enhance the professional knowledge and skills they provide to their clients.”

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

3,681 TRANSACTIONS IN FIRST HALF OF APRIL

2009-04-29T07:29:00.000-07:00

Greater Toronto REALTORS® reported 3,681 transactions in the
first half of April, down seven per cent compared to 3,955 during the same period last year.

“In lock-step with the favorable March results, resale housing market conditions in the first half of April were markedly improved compared to the winter time,” said TREB President Maureen O’Neill.

“Households that were on the sidelines at the beginning of the year are now taking advantage of lower interest rates and lower home prices.”

The average price for MLS® sales was $383,161, down four per cent from $399,117 last year.

“The average home price in the GTA stabilized as resale market conditions tightened over the past two months,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis.

For a complete copy of the Market Watch Report visit www.TorontoRealEstateBoard.com

Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of thics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the reater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. reater Toronto Area open house listings are now available on ww.TorontoRealEstateBoard.com.

Source: Toronto Real Estate Board

Mortgage rates unlikely to fall further

2009-04-15T17:18:00.000-07:00

Mortgage rates in Canada, which have plunged by almost 50% in the last year, aren’t likely to fall further, said Phil Soper, chief executive of Brookfield Real Estate Services Fund.

Mortgage rates in Canada, which have plunged by almost 50% in the last year, aren’t likely to fall further, said Phil Soper, chief executive of Brookfield Real Estate Services Fund.

“Certainly with the Bank of Canada’s target rate set at virtually zero, there’s very little room,” Mr. Soper said Tuesday at a conference in Toronto on Canada’s real estate market. The rate is “the lowest it’s been in anyone in this room’s lifetime.”

Rates for home loans have been dropping during the biggest financial crisis since the Great Depression, with some lenders offering mortgages approaching 4%, Mr. Soper said. That compares with an average posted five-year rate of 7.5% a year ago, according to the Bank of Canada. He added that home prices in Canada aren’t likely to rise “sharply” over the next two years.

Bank of Montreal, which sponsored the conference, lowered its rate for a five-year fixed-rate mortgage this month to 4.15%.

“We are approaching almost zero interest rates,” at the Bank of Canada, said John Turner, the Toronto-based bank’s director of mortgages. “The question becomes, how much upward pressure will there be as we come out of this recession?”

The Bank of Canada last month cut its benchmark lending rate to 0.5%, its lowest ever, and said it’s preparing to use policies beyond interest rate moves to revive an economy hit by a recession and tight credit markets. The next rate announcement is April 21.

Canadian existing home sales rose in February for the first time since September as buyers took advantage of lower mortgage rates and prices, according to the Canadian Real Estate Association’s Multiple Listing Service. Sales of existing homes rose 8.6% from January to 28,669 units.

Bank of Montreal senior economist Sal Guatieri predicted that Canada’s housing market will decline further this year, without the “crash” experienced in the U.S.

Source: By Sean B. Pasternak, Bloomberg

March Resale Housing Results Bring Positive News

2009-04-13T05:37:00.000-07:00

In March 2009, Greater Toronto REALTORS® reported 6,171 sales
– down seven per cent from March 2008, representing the smallest year-over-year decline in the last five months. The average price for March transactions was $362,052 – down less than five per cent from the same month last year.

“The Greater Toronto housing market has stood up very well given the challenging economic times the world has experienced in recent months,” commented TREB President Maureen O’Neill.

“In fact, over the past two months, the situation in the housing market has improved.” The seasonally-adjusted annual rate of sales increased to 65,600 in March – up 36 per cent from the ten-year low reached in January.1

“Sales in March increased at a rate over and above what would be expected from the normal spring-time bump,” said Jason Mercer TREB’s Senior Manager of Market Analysis. “A greater number of households have taken advantage of increased affordability in the housing marketplace.”

For a complete copy of the Market Watch Report visit www.TorontoRealEstateBoard.com

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

Torontonians Want Toronto Land Transfer Tax Repealed

2009-04-01T06:24:00.000-07:00

With Toronto City Council scheduled to debate and vote on the City’s
proposed 2009 Operating Budget tomorrow, public opinion poll results, released today, show that 65 per cent of Torontonians believe that the Toronto Land Transfer Tax should be repealed.

The poll was conducted by the Environics Research Group Ltd. for the Toronto Real Estate Board.

“REALTORS® strongly believe that Toronto City Council should scrap the Toronto Land Transfer Tax, and the public agrees,” said Maureen O’Neill, President of the Toronto Real Estate Board. “The Toronto Land Transfer Tax is not a fair tax and is hurting Toronto’s economy.”

The poll also found that 57 per cent of Torontonians believe that the Toronto Land Transfer Tax is hurting the real estate market and 62 per cent believe that the City has not taken adequate action to help stimulate the economy.

“Torontonians want more action from the City on the economy, and they understand that the Toronto Land Transfer Tax is having a negative impact,” said O’Neill. “One of the best ways that the City can take action to help with the current economic situation is to roll back the Toronto Land Transfer Tax.”

A recent study conducted by the C.D. Howe Institute and Economics Professors from the University of Toronto determined that the Toronto Land Transfer Tax is having a significant impact on Toronto’s real estate market, reducing housing sales by 16 per cent and values by 1.5 per cent in 2008 alone.

A separate recent study, conducted for the Canadian Real Estate Association, found that one out of every 100 jobs depends on spending associated with re-sale housing sales, on things like renovations, furniture, and appliances. This means that approximately 14,000 jobs in Toronto depend on re-sale housing transactions. TREB believes that, by impacting the real estate market, the Toronto Land Transfer Tax is risking these jobs.

The Environics poll also found that 60 per cent of Torontonians think that the City is not being run as efficiently as possible. REALTORS® are calling on City Councillors to focus their budget efforts on options recommended over a year ago by an independent blue-ribbon panel of business and labour representatives, appointed by Mayor Miller.

“Over a year ago, the Mayor’s Fiscal Review Panel identified, literally, hundreds of millions of dollars in savings and efficiencies that the City could be taking advantage of,” said O’Neill. “The City’s budget efforts should be focusing on fair options, like those recommended by the Mayor’s Fiscal Review Panel.”

The poll of 500 Toronto residents aged 18 years or over was conducted by telephone between March 12 and March 15, 2009, and is considered accurate to within +/- 4.5%, 19 times out of 20.

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

2,565 RESALE HOUSING TRANSACTIONS SHOWS RATE OF DECLINE SHRINKING

2009-03-19T07:23:00.000-07:00

Greater Toronto REALTORS® announced 2,565 transactions in the first half of March compared to 3,183 during the same period last year. The annual rate of
MLS® sales decline was the smallest in five months.

Mid-month March MLS® sales increased compared to the 2,044 sales experienced in the first half of February.

MLS® sales follow a recurring seasonal trend, with transactions generally increasing between January and May and then decreasing between June and December.

“As we move into the spring market, it appears that we are seeing stronger demand for
ownership housing in the Greater Toronto Area,” said TREB President Maureen O’Neill. “Buyers are reacting to the market’s strong foundation of affordability.”

The average price for MLS® sales was $365,499 compared to $385,405 last year.

“Affordability has improved over the past few months due to a combination of lower home prices, near record lows for mortgage rates and rising earnings,”1 according to Jason Mercer, TREB’s Senior Manager of Market Analysis.

Average weekly earnings for the Toronto CMA, as reported by Statistics Canada, have been rising on a year-over-year basis over the past year. For example, in February 2009, average weekly earnings rose by approximately 2.5 per cent compared to
February 2008.

For a complete copy of the most recent Market Watch Report visit www.TorontoRealEstateBoard.com

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

GTA Housing Resales at 2,044 in Mid February

2009-03-02T05:48:00.000-08:00

Greater Toronto REALTORS® reported 2,044 sales through the
first 14 days of February, compared to 2,775 sales reported during the same period in 2008.

“While sales have been lower, the housing sector remains one of the pillars of the GTAeconomy,” said TREB President Maureen O’Neill. “Each existing home transaction generates,on average, more than $33,000 in spin-off spending on renovations and other housing-relateditems. This spin-off spending translates into jobs.”

“The City of Toronto needs to do its part to encourage homeownership by reducing the taxburden on existing and potential home owners,” said TREB President Maureen O’Neill. “To thisend, Greater Toronto REALTORS® are calling on the City to roll back the municipal landtransfer tax. We presented our views to the City’s Budget Committee yesterday.”

The average home price in the GTA was $364,748 compared to $385,735 in mid-month
February last year.

“It is interesting to note that while the average price was down, the annual rate of price declineslowed compared to the previous four months,” according to Jason Mercer, the Toronto RealEstate Board’s Senior Manager of Market Analysis. “If this trend continues into the spring, itcould point towards average home prices leveling off between $360,000 and $370,000.”

Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share astate-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the TorontoReal 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

REALTORS® Ask City Budget Committee to Consider Impact of Land Transfer Tax

2009-02-19T13:46:00.000-08:00

With a deputation to the City of Toronto’s Budget Committee today,
Toronto’s REALTORS® are asking Council to consider the impact of the Toronto Land Transfer Tax on the
City’s economy.

“The current state of the economy requires every level of government, including the City, to take action,” said Maureen O’Neill, President of the Toronto Real Estate Board (TREB). “Not only does the City need to consider what it can do to help, but also what it is already doing that is hurting the economy. Clearly, the Toronto Land
Transfer Tax is hurting the economy.”

TREB is telling the City that the re-sale housing market is critical to Toronto’s economy and that the best action the City can take for this sector is to roll back the Toronto Land Transfer Tax. A recent study conducted by the C.D. Howe Institute and Economics Professors from the University of Toronto determined that the
Toronto Land Transfer Tax is having a significant impact on Toronto’s real estate market, reducing housing sales by 16 per cent and values by 1.5 per cent in 2008 alone.

A separate recent study, conducted for the Canadian Real Estate Association, determined that every re-sale housing transaction in Ontario generates over $33,000 in economic spin-off activity on things like renovations, furniture, and appliances. Based on these studies, TREB estimates that the Toronto Land Transfer Tax has
already cost the City’s economy about $200 million in consumer spending. The Tax has also reduced Toronto home owners’ net worth by $3.5 billion in lost equity when selling their homes, with less credit available to them from equity lines of credit, thereby reducing spending and economic activity.

“Buying and selling homes is crucial to our economy; thousands of jobs depend on it,” said O’Neill. “It was encouraging to see the City recognize this for new housing with its recent action on development charges, and we hope it will do the same for re-sale housing by reversing destructive tax policies, like the Toronto Land
Transfer Tax.”

According to the study conducted for the Canadian Real Estate Association, one out of every 100 jobs depends on spending associated with re-sale housing transactions. This means that approximately 14,000 jobs in Toronto and 30,000 jobs in the GTA depend on re-sale housing transactions. TREB believes that, by impacting the real estate market, the Toronto Land Transfer Tax is risking these jobs.

TREB is calling on the City to focus its efforts on options recommended by the Mayor’s Fiscal Review Panel last year.

“The Mayor’s Fiscal Review Panel made it clear that the City has choices other than taxes. According to the Panel, there are, literally, hundreds of millions of dollars in savings and innovative options available to the City,” said O’Neill. “Toronto taxpayers deserve to know what actions have been taken to implement the recommendations of the Mayor’s Fiscal Review Panel.”

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

REALTORS® Call for a “Home Owners’ Budget” From City

2009-02-10T06:03:00.000-08:00

In advance of the release of the City of Toronto’s recommended 2009
Operating Budget tomorrow, Toronto’s REALTORS® are calling on the City to do its part for the economy by making home owners and buyers a priority in the City’s budget.

“We have seen governments at all levels taking action on the economy, and we’re hoping that the City will do its part too. We’re looking to the City to make this a home owners’ budget,” said Maureen O’Neill, President of the Toronto Real Estate Board (TREB). “The housing industry is critical to Toronto’s economy. It generates billions of dollars of spending and creates thousands of jobs. One of the best
things that the City can do for the economy is to roll back the Toronto Land Transfer Tax.”

A recent study conducted by the C.D. Howe Institute and Economics Professors from the University of Toronto determined that the Toronto Land Transfer Tax is having a significant impact on Toronto’s real estate market, reducing housing sales by 16 per cent and values by 1.5 per cent.

A separate recent study, conducted 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. Based on these studies, TREB estimates that the Toronto Land Transfer Tax has cost the City’s economy about $200 million in consumer spending and has reduced Toronto home owners’ net worth by $3.5 billion in lost equity when selling their homes, and less credit available to them from equity lines of credit, thereby reducing spending and economic activity.

“City polices impact the housing sector. It was encouraging to see this recognized recently with action on development charges. We hope City Council will also recognize the impact of the Toronto Land Transfer Tax,” said O’Neill.

TREB is calling on the City to use its 2009 Operating Budget process to continue implementing recommendations made by the Mayor’s Fiscal Review Panel one year ago.

“The City has fiscal options. The Mayor’s Fiscal Review Panel pointed out that the City should be able to find $150 million in budget savings this year. Now, more than ever, it is important for the City to move in this direction, instead of options that reduce economic activity, like the Toronto Land Transfer Tax,” said
O’Neill.

REALTORS® look forward to providing input during the City’s 2009 Operating Budget consultations.

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

Mid-Month January GTA Housing Resales at 888

2009-01-19T09:26:00.000-08:00

Greater Toronto REALTORS® reported 888 sales during the first
half of January compared to 1,776 in the first 15 days of 2008. "According to Statistics Canada the economic situation throughout Canada changed noticeably over the past year with job losses in the fourth quarter of 2008. Toronto is not immune to this, the GTA housing market has been impacted," according to TREB President Maureen O’Neill.

The average GTA price mid-way through January is $332,495 from $367,574 during the same period in 2008. The median GTA price was $301,000 compared to 316,000 last year. "While sales have declined, listings have remained high. GTA home buyers have benefitted from more choice," explained Ms. O’Neill. "Historically, increased choice in the marketplace has equated to a moderation in price growth."

In January 2009, stronger declines in sales and prices were experienced in the City of Toronto. "Sales for January a year ago may have been elevated by the flurry of transactions completed before the city’s land transfer tax went into effect," added Ms. O’Neill.

"The costs of home ownership in the 416 has increased due to the added land transfer tax many home buyers now face in the City of Toronto. Some households considering the purchase of a home in the City have either put their decision on hold or looked elsewhere in the GTA."

Source: Toronto Real Estate Board

Greater Toronto Home Resales at 1,500 in Mid December

2008-12-24T08:34:00.001-08:00

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

Toronto's condo boom is heading for a bust

2008-12-16T07:36:00.000-08:00

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

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

2008-12-11T13:13:00.001-08:00

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

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

2008-12-09T12:26:00.000-08:00

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

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

2008-12-04T06:12:00.001-08:00

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

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

2008-12-02T07:26:00.000-08:00

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

Ottawa may make millions on CMHC plan for banks

2008-10-21T05:45:00.001-07:00

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

Changing GTA Resale Housing Market Reflects Economic Times

2008-10-20T06:49:00.000-07:00

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

GTA Resale Housing Market Measured in September

2008-10-03T08:12:00.001-07:00

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

Greater Toronto Area Resale Housing Moderate in September

2008-09-25T06:19:00.001-07:00

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

GTA Resale Housing Remains Steady Throughout Summer Months

2008-09-08T06:50:00.000-07:00

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

GTA Resale Housing Remains Stable in August

2008-08-21T16:57:00.000-07:00

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

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

2008-08-12T06:14:00.001-07:00

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

CMHC eliminates zero down mortgages and 40 year amortization

2008-07-17T06:05:00.000-07:00

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

June Breaks 1,000,000 Square Foot Barrier

2008-07-16T07:36:00.000-07:00

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.

GTA Resale Housing Continues Steady Pace

2008-07-02T07:46:00.000-07:00

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

Steady GTA Resale Housing Market in May

2008-06-10T11:24:00.000-07:00

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

GTA Resale Housing Market Moderate in May

2008-05-26T12:15:00.000-07:00

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

Resale Housing Market moderate in April, but prices up

2008-05-05T09:18:00.000-07:00

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

GTA Resale Housing Sales Ease in March

2008-04-16T07:48:00.000-07:00

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

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

2008-04-01T13:16:00.000-07:00

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

Toronto Real Estate Board says GTA resale housing market still down

2008-03-24T07:10:00.000-07:00

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

GTA Resale Housing Down but Healthy

2008-03-07T06:31:00.000-08:00

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

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

2008-02-20T07:05:00.001-08:00

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

GTA Resale Housing Market Solid in January

2008-02-13T06:43:00.000-08:00

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

Bright Start to the New Year

2008-01-31T11:49:00.000-08:00

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

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

2008-01-17T06:59:00.000-08:00

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

Condo sales bring 2007 to a strong finish!

2008-01-10T07:44:00.000-08:00

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

Ontario Expands Land Transfer Tax Refund Program

2007-12-17T06:03:00.000-08:00

First-time buyers of resale homes to benefit from new tax measure
The McGuinty government is giving all first-time homebuyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes, Finance Minister Dwight Duncan announced today.
"Expanding this Land Transfer Tax refund is an important part of our government's commitment to helping Ontarians buying their first home," Duncan said.
Effective midnight tonight, first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.
The expanded Land Transfer Tax Refund Program for First-time Homebuyers is part of a package of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review that would provide $1.4 billion in provincial tax relief for business and people over three years. The government is making strategic investments in people, communities and infrastructure to strengthen Ontario's economic advantage and help manufacturers and other sectors challenged by current economic conditions.

For more information please visit: http://www.gov.on.ca

Source: www.reco.on.ca

Toronto Real Estate Board on Track for a Record-Breaking Year!

2007-12-05T07:40:00.000-08:00

Last month became the best November on record with 7,313 resale home transactions in the Greater Toronto Area, Toronto Real Estate Board President Maureen O’Neill announced today.
“I recently reported that 2007 became the best year ever for resale transactions in the Greater Toronto Area with six weeks left to go,” said Ms. O’Neill. Even more astonishing though, is the fact that eight of the 11 months so far this year set new monthly records. No other year has shown as many record-breaking monthly performances.”
Sales were up 16 per cent in November compared to the same timeframe last year.
At $393,757, November’s average price increased 11 per cent as compared to a year ago and remained in line with the previous month.
Some of the most significant activity in November took place in the 416 area code.
Based on strong sales in all housing types, Riverdale (E01) saw a 56 per cent increase in transactions compared to November 2006.
In the Islington/Kingsway (W08), sales rose 55 per cent over last November, driven primarily by an increase in detached home sales.
In Willowdale (C07), transactions nearly doubled compared to the same timeframe a year ago, driven by strong condominium apartment and detached home sales.
In the West part of Markham (N01), strong detached home sales led to an overall increase of 86 per cent compared to November 2006.
“We expect 2007 to be the first year ever to exceed 90,000 transactions, said Ms O’Neill. These numbers reflect the fact that people who live in the Greater Toronto Area see real estate as an excellent long-term investment.”
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

Best Year Ever with Six Weeks To Go!

2007-11-20T05:42:00.000-08:00

With six weeks remaining, 2007 has already become the best year on record for resale homes in the Greater Toronto Area, Toronto Real Estate Board President Maureen O’Neill announced today.
“As I predicted last month, 2007 will indeed be a banner year for home sales in our city,” said Ms. O’Neill. “So far this year, 84,994 properties have changed hands, as compared to 84,145 sales in 2005, our previous best year.”
With 3,544 transactions to mid-month, November sales are also up five per cent compared the same timeframe last year.
The current average price is $393,084, a nine per cent increase over the first half of November 2006.
The year-to-date average price stands at $374,678, up six per cent over the $352,807 recorded during the first 111/2 months of 2006.
In West Agincourt (E05), transactions were up 39 per cent as compared to the same timeframe a year ago, driven by a significant increase in detached home sales.
Newmarket (N07) saw an increase of 50 per cent compared to the midway point of last November, due to a substantial number of detached and semi-detached home sales.
Northwest Cooksville (W15) experienced an overall sales increase of 27 per cent compared to mid-November 2006, mainly as a result of condominium townhouse sales.
In the downtown core (C01) condominium apartment transactions resulted in a 32 per cent overall increase as compared to the first half of last November.
“All of the economic conditions remain in place for a strong housing market in the GTA. The unemployment rate fell by approximately half a per cent last month, Statistics Canada anticipates sustained immigration throughout the next decade and mortgage rates remain historically low,” said Ms. O’Neill. “Toronto is a very vibrant city in which to live and compared to other urban centres like New York, Los Angeles and London, our housing is very affordable.”
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

Best October ever pushes 2007 toward a strong finish

2007-11-07T07:41:00.000-08:00

Greater Toronto Area resale housing activity set a new
record for the month of October TREB President Maureen O’Neill reported today.
With 7,915 transactions, activity was up 10 per cent over the previous best for the month,set in 2003. Sales were also up 15 per cent over last October.
October’s strong performance has pushed year-to-date activity 12 per cent ahead of last year.
“There is every indication that 2007 will be a banner year for resale housing activity in the Greater Toronto Area,” said Ms. O’Neill. “The effects of the City of Toronto’s new land transfer tax will definitely be felt in 2008 but we are also confident that consumers will continue to see the value of real estate as a solid long-term investment.”
Prices also rose in October to an average of $394,646, a four per cent increase over the previous month.
In Pickering (E13), overall activity was up 34 per cent, led by strong detached sales and a doubling of condominium apartment transactions.
Willowdale (C07) experienced the same combination of strong detached sales and sizeable condominium apartment transactions, which led to a 67 per cent increase in overall sales. Condominium apartment sales also pushed the South Humber area (W07) to a 60 per cent overall increase in activity.
In Central Richmond Hill (N04), a combination of detached sales and attached/row-house sales, contributed to an overall increase of 54 per cent..
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

REALTORS® Disappointed that Public Opinion on Land Transfer Tax Ignored

2007-10-24T13:52:00.000-07:00

Toronto’s REALTORS® are concerned about the potential impact of the City ofToronto’s recently approved second land transfer tax and disappointed that the public’s opinion of this tax wasignored.
“REALTORS® have been working hard to provide the facts about this unfair idea and the public respondedwith action. An overwhelming majority of Torontonians believe that this tax is a bad idea,” said MaureenO’Neill, President of the Toronto Real Estate Board (TREB). “The public made their voices heard loud and clearbut, unfortunately, they were ignored.”
A poll conducted by the Environics Research Group, commissioned in part by TREB, showed that 62 per centof Torontonians think that a land transfer tax is an unfair solution to the City’s financial challenge and that 61per cent of Torontonians wanted their Councillor to vote against it.
“Torontonians deserve to be treated fairly. A second land transfer tax is an extremely unfair way to addressthe City’s financial challenges. It forces a relatively small group, home buyers, to pay for services foreveryone. That, simply, is unfair,” added O’Neill.
TREB also raised concerns about the potential impact of a second land transfer tax.
“Home ownership is something that the City should be trying to encourage, not discourage. The second landtransfer tax will make it more difficult for people to achieve that dream and it could hurt property values forsome current home owners,” said O’Neill. “It could also have far-reaching impacts on the City’s wholeeconomy by reducing the amount of money that home buyers have to spend on things like furniture,renovations, and energy-efficiency upgrades.”
TREB is disappointed that the City is choosing new taxes instead of more prudent solutions. Specifically, TREBbelieves that the City should have waited for the Mayor’s panel to report on alternative options. TheEnvironics poll showed that 78 per cent of Torontonians think that City Council should have waited until theMayor’s panel finished its work before deciding on new taxes.
“This is a classic example of putting the cart before the horse: tax now, save later. That, simply, doesn’tmake sense,” said O’Neill. “The Mayor appointed a panel to look for savings and other options and weapplaud him for that. The panel is something that TREB, and the public, called for, but they should have beenallowed to finish their work so that fair options could have been considered instead of a land transfer tax.”
TREB has consistently supported fair options for dealing with the City’s financial challenges, including a morefair deal with senior levels of government, and continues to support City efforts in this regard.
“Unfortunately, we disagree with the City on the land transfer tax, and we will continue to oppose it. Wecontinue to believe that it is not fair,” said O’Neill. “Let’s not forget that this tax doesn’t solve the City’sfinancial challenge. We look forward to working with the City towards fair solutions. We will continue to pushfor a fair deal for Toronto from senior levels of government, as we always have.”
Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share astate-of-the-art Multiple Listing Service. Serving more than 26,000 Members in the Greater TorontoArea, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area openhouse listings are available on www.TorontoRealEstateBoard.com

Source: Toronto Real Estate Board

October housing activity confirms consumer confidence in real estate market

2007-10-18T12:00:00.000-07:00

Resale housing activity substantially outpaced mid-October results from a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.
“There were 3,297 sales reported to mid-month, which is a 10 per cent increase over the 3,007 homes sold during the same period last year,” Ms. O’Neill said. “We are on course to rival October’s best result, which was in 2003 with 7,227 sales.”
In Riverdale (E01) the number of transactions to mid-month jumped 29 per cent compared to the same timeframe a year ago due to strong sales in all housing types.
Streetsville East (W19) saw a significant increase in the sale of semi-detached homes, which helped push overall sales up 48 per cent compared to mid-October 2006.
A combination of strong condominium and detached home transactions drove Willowdale’s (C07) mid-month sales to an overall increase of 83 per cent.
At the northern edge of TREB’s reporting area, Innisfil (N23) saw sales to mid-month double as compared mid-October 2006, driven mainly by the sale of detached homes.
Meanwhile, the average price rose to $399,013, up nine per cent over the $364,364 recorded to the middle of September. This figure is also 13 per cent higher than the first half of October last year when the average price stood at $353,677.
“While mid-month figures simply provide a snapshot of current activity, we are encouraged that sales remain robust. The activity we have seen this autumn shows that consumers continue to have a great deal of well-founded confidence in the housing market,” said Ms. O’Neill. “There’s no question that home ownership is the best long-term investment you can make.”
However, if the City of Toronto imposes a second land transfer tax, this could have far reaching impacts on the City’s economy. “A doubling of land transfer taxes could impact the market and will reduce the amount of money home buyers spend,” noted 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

September Resale Market Shows Strength

2007-10-10T13:18:00.001-07:00

The Greater Toronto Area resale housing market continued its strong, stable pace in September with 6,866 transactions taking place, Toronto Real Estate Board President Maureen O’Neill announced today.
This marks an increase of four per cent as compared to September 2006 and is within six per cent of the record set for the month in 2005.
Prices increased to an average $380,132, up five per cent over the previous month.“Year-to-date sales are up 11 per cent as compared to the same timeframe in our record year 2005,” said Ms. O’Neill. “This bodes well for a strong outcome to this year.”
In Scarborough Center (E09), sales were up 38 per cent as compared to September 2006, due to a significant increase in the number of detached homes sold.
Sales in High Park (W02) increased by 34 per cent as compared to last September, mainly as a result of a tremendous increase in the sale of semi-detached units.
Condominium apartment transactions led the way to a 64 per cent overall increase in sales in Willowdale (C07).
Richmond Hill South (N03) also saw a strong number of condominium apartment sales, which resulted in an overall increase of 26 per cent as compared to September 2006.“Resale housing numbers in the GTA have been consistently positive, reflecting a healthy market,” said Ms. O’Neill. “We hope that the City of Toronto doesn't jeopardize this market by imposing a second land transfer tax on home buyers."
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

Autumn Market Going Strong

2007-09-21T05:57:00.000-07:00

With 3,236 sales so far this month, re-sale housing activity has increased 11 per cent as compared to the first half of September 2006, Toronto Real Estate Board President Maureen O’Neill announced today.
The past five consecutive months have been record-breakers and September is on track to follow suit. It is four per cent ahead of the 3,112 recorded during the first half of September 2005, which became the best September ever.
“Some economists who predicted a soft landing may have to revise their forecasts, said O’Neill. The real estate market continues to prove its strength month after month. There simply is no better investment.”
The average price for a home in the Greater Toronto Area currently stands at $364,364, an increase of nine per cent compared to first half of September 2006.
Neighbourhoods throughout the Greater Toronto Area reported strong sales in the first two weeks of this month.
The High Park area of Toronto (W2) saw twice as many sales compared to mid-September 2006, due to a sizeable increase in the sale of semi-detached homes.
West Agincourt in Scarborough (E04) saw 51 per cent more homes sell in the first half of September compared to the same timeframe a year ago, showing strength in all housing categories.
In the downtown core (C01), condo-apartment activity pushed the area’s overall total 40 per cent higher than sales to mid-September 2006.
Condominiums were also the driving force behind a 29 per cent increase in overall mid-month sales in South Richmond Hill (N03).
“The market is showing strength in a wide range of neighbourhoods and housing types, said O’Neill.
We’re seeing strong activity and stable price growth so there is a lot to be positive about.”
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

August sets the stage for a strong autumn market

2007-09-07T07:04:00.000-07:00

More people in the Greater Toronto Area bought resale homes last month than in any August before, Toronto Real Estate Board President Donald Bentley announced today.
The 8,059 sales reported last month exceeded the previous best performance for August, set in 2005, by seven per cent.
August also brought year-to-date figures up 13 per cent over the same period last year. So far this year 67,146 homes have sold as compared to 59,488 at this time in 2006. The pace is also 13 per cent ahead of the same timeframe in 2005, which became the best year on record.
“With five consecutive record-breaking months, spring and summer activity was unprecedented and given the strong economic fundamentals that remain in place, we have tremendous confidence in the autumn housing market,” said Mr. Bentley.
The Greater Toronto Area’s strongest sales activity in August took place in widely diverseneighbourhoods.
In West Agincourt (E05) a jump in the sale of detached homes and condo apartments resulted in a 34 per cent overall increase compared to last August.
An increase in the sale of detached homes and condo apartments also resulted in an overall increase of 52 per cent in High Park (W02).
In Toronto’s Davisville (C10) the sale of semi-detached homes and condo apartments pushed overall activity in the district to a 58 per cent increase over August 2006.
Richmond Hill South (N03) showed a 43 per cent increase, led by condo apartment and detached home sales.
“Prices moderated in August, down approximately one per cent from the previous month, meaning that there will be many opportunities within reach during this autumn market,” said Mr. Bentley.
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

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

2007-08-30T06:03:00.000-07:00

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

Source: Toronto Real Estate Board

August Prepares to Roar into Fall Market

2007-08-17T07:41:00.001-07:00

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

Serving more than 26,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.

Source: Toronto Real Estate Board