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
Thursday, June 03, 2010
Monday, May 17, 2010
April Experiences Record Number of Buyers and Sellers
Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board
(TREB) boundaries.
“The GTA resale market is functioning properly. Sales were high as
buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and
price growth,” said Toronto Real Estate Board President Tom Lebour.
“More balanced market conditions will result in sustainable rates of
annual price growth in the second
half of 2010.”
The average price for April transactions was $437,600 – up 13
per cent compared to the average of $385,641 recorded in April 2009.
“Home sales continue to be driven by many different segments of the
market, with sales growth for all major home types in both the City
of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s
Senior Manager of Market Analysis. “Home sales will remain strong in
the second half of 2010, but will slip from the current record pace as
borrowing costs rise.”
Source: Toronto Real Estate Board
(TREB) boundaries.
“The GTA resale market is functioning properly. Sales were high as
buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and
price growth,” said Toronto Real Estate Board President Tom Lebour.
“More balanced market conditions will result in sustainable rates of
annual price growth in the second
half of 2010.”
The average price for April transactions was $437,600 – up 13
per cent compared to the average of $385,641 recorded in April 2009.
“Home sales continue to be driven by many different segments of the
market, with sales growth for all major home types in both the City
of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s
Senior Manager of Market Analysis. “Home sales will remain strong in
the second half of 2010, but will slip from the current record pace as
borrowing costs rise.”
Source: Toronto Real Estate Board
Friday, April 23, 2010
Greater Toronto REALTORS® report Mid-April Resale Market Figures
Greater Toronto REALTORS® reported 4,601 sales through
the Multiple Listing Service® (MLS®) during the first two weeks of April.
This represented a 25 per cent increase compared to the 3,681 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 9,512.
“The fact that annual growth in new listings outstripped growth in sales suggests that the GTA existing home market is becoming better supplied,” said Toronto Real Estate Board President Tom Lebour.
"Home owners are reacting to strong sales and price growth by listing their homes in greater numbers. They are confident they will receive offers in line with their asking
price."
The average price for April mid-month transactions was $430,271 – up 12 per cent compared to the average of $383,361 recorded during the first 14 days of April 2009. "The average annual rate of price increase has declined and we are shortly going to see a return to sustainable single-digit rates of growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.
"As home buyers experience more choice in the marketplace, there will be less upward pressure on the average selling price in the GTA.”
Source: Toronto Real Estate Board
the Multiple Listing Service® (MLS®) during the first two weeks of April.
This represented a 25 per cent increase compared to the 3,681 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 9,512.
“The fact that annual growth in new listings outstripped growth in sales suggests that the GTA existing home market is becoming better supplied,” said Toronto Real Estate Board President Tom Lebour.
"Home owners are reacting to strong sales and price growth by listing their homes in greater numbers. They are confident they will receive offers in line with their asking
price."
The average price for April mid-month transactions was $430,271 – up 12 per cent compared to the average of $383,361 recorded during the first 14 days of April 2009. "The average annual rate of price increase has declined and we are shortly going to see a return to sustainable single-digit rates of growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.
"As home buyers experience more choice in the marketplace, there will be less upward pressure on the average selling price in the GTA.”
Source: Toronto Real Estate Board
Monday, April 05, 2010
New rules for rental properties could squeeze first-time homebuyers
Buying a house in the hot housing markets of Vancouver, Toronto and other major cities in recent years has been a possible dream for some first-time homebuyers only because many of those houses had suites they could rent out.
But new rules coming into effect April 19 will all but wipe out that advantage in the eyes of banks handing out mortgages.
"It makes it much more difficult for people with rental properties to qualify for their own mortgage on their personal residence," said Vancouver mortgage specialist Patrick Mulhern.
The new regulations are designed to prevent speculation in the market, said Jack Aubrey, of the Canada Mortgage and Housing Corporation.
But Vancouver mortgage agent Mike Averbach said the new rules will do little to prevent investors from gambling in the housing market.
"They haven't decreased risk," he said. "They're just not allowing you to use the income."
Currently, landlords can use 80 per cent of their rental income to offset monthly mortgage payments. That means, if they receive $1,000 per month in rental income, they can use $800 to offset a $1,200 mortgage payment, leaving only $400 to be debt financed.
But under the new rule, only 50 per cent of a landlord's rental income will be used. Even then, that money will not be used to offset their monthly mortgage payment. It will be added to their total income, forcing them to qualify for the entire monthly mortgage.
For instance, a person earning $100,000 per year in regular income plus $12,000 per year in rental income will have a total income of $106,000 with which to qualify for a mortgage on their own home.
Rental income is essential for many of his clients, Averbach said.
In cities like Vancouver, where the average home price in February was more than $662,000, rental offset is the only way many people can qualify for a mortgage and the new rules will keep many of his clients in condos rather than houses, he said.
"Putting a renter in your basement is not speculative, it's reality," he said. "It helps you pay your mortgage."
The rule changes also make it more difficult for people to buy a property separate property to use as a revenue generator.
CMHC will no longer offer high-ratio financing on rental property not lived in by the owner. That means someone looking to buy a house as a rental investment will have to come up with a 20-per-cent down payment on the property, as opposed to five per cent before the rules changed.
The changes haven't worried groups advocating for tenants.
Jeordie Dent, of the Federation of Metro Tenants' Association in Toronto, where vacancy and availability rates have dropped over the last year, said he doesn't see a negative impact on renters.
Instead, he said his group welcomes the changes.
Dent said too many people become landlords without the financial or intellectual wherewithal to properly manage their properties.
"Anything that strengthens mortgage rules, from our perspective, is a good thing."
Source: Derek Scott, The Canadian Press from Sat Apr 3, 11:17 AM
But new rules coming into effect April 19 will all but wipe out that advantage in the eyes of banks handing out mortgages.
"It makes it much more difficult for people with rental properties to qualify for their own mortgage on their personal residence," said Vancouver mortgage specialist Patrick Mulhern.
The new regulations are designed to prevent speculation in the market, said Jack Aubrey, of the Canada Mortgage and Housing Corporation.
But Vancouver mortgage agent Mike Averbach said the new rules will do little to prevent investors from gambling in the housing market.
"They haven't decreased risk," he said. "They're just not allowing you to use the income."
Currently, landlords can use 80 per cent of their rental income to offset monthly mortgage payments. That means, if they receive $1,000 per month in rental income, they can use $800 to offset a $1,200 mortgage payment, leaving only $400 to be debt financed.
But under the new rule, only 50 per cent of a landlord's rental income will be used. Even then, that money will not be used to offset their monthly mortgage payment. It will be added to their total income, forcing them to qualify for the entire monthly mortgage.
For instance, a person earning $100,000 per year in regular income plus $12,000 per year in rental income will have a total income of $106,000 with which to qualify for a mortgage on their own home.
Rental income is essential for many of his clients, Averbach said.
In cities like Vancouver, where the average home price in February was more than $662,000, rental offset is the only way many people can qualify for a mortgage and the new rules will keep many of his clients in condos rather than houses, he said.
"Putting a renter in your basement is not speculative, it's reality," he said. "It helps you pay your mortgage."
The rule changes also make it more difficult for people to buy a property separate property to use as a revenue generator.
CMHC will no longer offer high-ratio financing on rental property not lived in by the owner. That means someone looking to buy a house as a rental investment will have to come up with a 20-per-cent down payment on the property, as opposed to five per cent before the rules changed.
The changes haven't worried groups advocating for tenants.
Jeordie Dent, of the Federation of Metro Tenants' Association in Toronto, where vacancy and availability rates have dropped over the last year, said he doesn't see a negative impact on renters.
Instead, he said his group welcomes the changes.
Dent said too many people become landlords without the financial or intellectual wherewithal to properly manage their properties.
"Anything that strengthens mortgage rules, from our perspective, is a good thing."
Source: Derek Scott, The Canadian Press from Sat Apr 3, 11:17 AM
Sunday, April 04, 2010
Canadian real estate too pricey: survey
The majority of Canadian homeowners and homebuyers think house prices are too high, a BMO survey suggests.
The survey found that 71 per cent of current and future homebuyers considered houses too expensive. That was especially true in major urban centres.
Despite this perception that homes cost more than they should, the survey also found Canadians feeling more pressure to "buy now."
"Housing prices have risen 89 per cent since 2002 — vastly outpacing family income gains," said Sal Guatieri, a senior economist at BMO Capital Markets.
"But with a cooler market just around the corner, with rising interest rates expected, and the introduction of the harmonized sales tax in Ontario and B.C., prudence may be a good choice for many new entrants into the housing market."
Rates heading up
This week, a number of Canadian banks began hiking their fixed-rate mortgages, with the popular five-year term jumping by six-10ths of a percentage point to a posted rate of 5.85 per cent.
While most borrowers are able to get the posted rate chopped by more than a full percentage point, most discounted rates also moved up by the same six-10ths of a point.
The most recent figures from the Canadian Real Estate Association, which are based on national MLS sales, showed the average selling price in February was $335,655, up 18.2 per cent in the last year.
In some markets, the average selling price was breathtaking. For instance in Vancouver, the average home changed hands for $662,741 in February — up more than $120,000 from a year earlier.
Higher mortgage rates and the arrival of tighter mortgage lending rules are sending more first-time borrowers to independent mortgage brokers rather than banks, according to the Canadian Association of Accredited Mortgage Professionals.
Figures from CMHC last year showed that 42 per cent of homebuyers aged 25 to 34 used a broker.
New lending rules in effect Apr. 19
New mortgage lending rules coming April 19 will require buyers to qualify for a five-year, fixed-rate mortgage even if they plan to choose a lower-rate variable mortgage.
About one-third of respondents in the BMO survey said they'd lost sleep because of the stress of trying to buy a new home and about 15 per cent of prospective buyers said they'd been in bidding wars and had felt they'd often overpaid as a result.
The online survey was carried out by Harris-Decima between Feb. 16 and Feb. 22 and was based on a sample of 1,000 Canadians between the ages of 25 to 45 years who are either current home owners or are planning on purchasing their first home in the next 12 months.
Source: CBC.ca with files from The Canadian Press
The survey found that 71 per cent of current and future homebuyers considered houses too expensive. That was especially true in major urban centres.
Despite this perception that homes cost more than they should, the survey also found Canadians feeling more pressure to "buy now."
"Housing prices have risen 89 per cent since 2002 — vastly outpacing family income gains," said Sal Guatieri, a senior economist at BMO Capital Markets.
"But with a cooler market just around the corner, with rising interest rates expected, and the introduction of the harmonized sales tax in Ontario and B.C., prudence may be a good choice for many new entrants into the housing market."
Rates heading up
This week, a number of Canadian banks began hiking their fixed-rate mortgages, with the popular five-year term jumping by six-10ths of a percentage point to a posted rate of 5.85 per cent.
While most borrowers are able to get the posted rate chopped by more than a full percentage point, most discounted rates also moved up by the same six-10ths of a point.
The most recent figures from the Canadian Real Estate Association, which are based on national MLS sales, showed the average selling price in February was $335,655, up 18.2 per cent in the last year.
In some markets, the average selling price was breathtaking. For instance in Vancouver, the average home changed hands for $662,741 in February — up more than $120,000 from a year earlier.
Higher mortgage rates and the arrival of tighter mortgage lending rules are sending more first-time borrowers to independent mortgage brokers rather than banks, according to the Canadian Association of Accredited Mortgage Professionals.
Figures from CMHC last year showed that 42 per cent of homebuyers aged 25 to 34 used a broker.
New lending rules in effect Apr. 19
New mortgage lending rules coming April 19 will require buyers to qualify for a five-year, fixed-rate mortgage even if they plan to choose a lower-rate variable mortgage.
About one-third of respondents in the BMO survey said they'd lost sleep because of the stress of trying to buy a new home and about 15 per cent of prospective buyers said they'd been in bidding wars and had felt they'd often overpaid as a result.
The online survey was carried out by Harris-Decima between Feb. 16 and Feb. 22 and was based on a sample of 1,000 Canadians between the ages of 25 to 45 years who are either current home owners or are planning on purchasing their first home in the next 12 months.
Source: CBC.ca with files from The Canadian Press
Monday, March 22, 2010
GTA new home sales in February best since 2006
Sales of new houses and condominiums in the Greater Toronto Area were up by more than 237 per cent in February compared with last year according to figures released today.
The 3,148 new homes sold represented the highest levels since 2006, according to RealNet Canada Inc.
“The new home market continues to benefit from the tight conditions in the resale market, 50-year low interest rates and healthy levels of consumer confidence in real estate,” said the Toronto-based Building, Industry, & Land Development Association.
However, February of 2009 was a recessionary year, with the figures representing the bottom of the market. Compared with 2008, February sales were still respectable, up 24 per cent, while it was up 19 per cent compared with 2007.
February sales were virtually split between low rise and high rise, with 51 per cent of buyers opting for detached or town homes, while 49 per cent chose condominiums.
Source: www.yourhome.ca by Tony Wong on March 22, 2010
The 3,148 new homes sold represented the highest levels since 2006, according to RealNet Canada Inc.
“The new home market continues to benefit from the tight conditions in the resale market, 50-year low interest rates and healthy levels of consumer confidence in real estate,” said the Toronto-based Building, Industry, & Land Development Association.
However, February of 2009 was a recessionary year, with the figures representing the bottom of the market. Compared with 2008, February sales were still respectable, up 24 per cent, while it was up 19 per cent compared with 2007.
February sales were virtually split between low rise and high rise, with 51 per cent of buyers opting for detached or town homes, while 49 per cent chose condominiums.
Source: www.yourhome.ca by Tony Wong on March 22, 2010
Monday, March 01, 2010
MID-FEBRUARY RESALE HOUSING MARKET FIGURES
Greater Toronto REALTORS reported 3,555 sales through
the Multiple Listing Service during the first two weeks of February.
This represented a 74 per cent increase compared to the 2,044 sales recorded during the same period in 2009 when resale transactions had dipped due to the recession. The February mid-month sales total was also 7.7 per cent above the previous high set in 2006.
"Home ownership demand remains strong in the GTA, as households remain confident that economic recovery is at hand and that ownership housing will continue to be a quality long-term investment," said Toronto Real Estate Board President Tom Lebour.
The average price for February mid-month transactions was $429,997 - an 18 per cent increase over 2009. New Listings within the Toronto Real Estate Board boundaries were
up 15 per cent to 6,212.
"Double-digit price increases will persist through the first quarter of the year," said Jason Mercer, TREB's Senior Manager of Market Analysis. "However, as new listings continue to increase creating a better supplied market, we will see the annual rate of price growth moderate into the single digits."
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 29,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.
Source: Toronto Real Estate Board
the Multiple Listing Service during the first two weeks of February.
This represented a 74 per cent increase compared to the 2,044 sales recorded during the same period in 2009 when resale transactions had dipped due to the recession. The February mid-month sales total was also 7.7 per cent above the previous high set in 2006.
"Home ownership demand remains strong in the GTA, as households remain confident that economic recovery is at hand and that ownership housing will continue to be a quality long-term investment," said Toronto Real Estate Board President Tom Lebour.
The average price for February mid-month transactions was $429,997 - an 18 per cent increase over 2009. New Listings within the Toronto Real Estate Board boundaries were
up 15 per cent to 6,212.
"Double-digit price increases will persist through the first quarter of the year," said Jason Mercer, TREB's Senior Manager of Market Analysis. "However, as new listings continue to increase creating a better supplied market, we will see the annual rate of price growth moderate into the single digits."
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 29,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.
Source: Toronto Real Estate Board
Wednesday, February 03, 2010
Toronto existing home sales skyrocket 87 per cent
The January real estate market started 2010 at full gallop, with sales up 87 per cent from the year before, according to figures released today.
There were 4,986 existing home sales in January, compared to 2,670 sales the year before when sales hit an all-time low for the month, according to a report by the Toronto Real Estate Board.
“The Greater Toronto Area home market has rebounded well from the lows in sales experienced at the beginning of 2009,” said Tom Lebour, president of the board.
Placed in perspective, this January’s sales were slightly higher than the January average in the years preceding 2009 when the economy faced recession.
The average price of a home this January hit $409,058, up 19 per cent compared with $343,632 in the same month last year.
TREB warned comparisons to last year will continue to be extreme in the first quarter of this year as “we continue to make comparisons to weak market conditions at the beginning of 2009.”
Jason Mercer, senior manager of market analysis for TREB said sales and price growth is expected to be slower in the second half of this year.
Source: Tony Wong, Toronto Star - Feb 3, 2010
There were 4,986 existing home sales in January, compared to 2,670 sales the year before when sales hit an all-time low for the month, according to a report by the Toronto Real Estate Board.
“The Greater Toronto Area home market has rebounded well from the lows in sales experienced at the beginning of 2009,” said Tom Lebour, president of the board.
Placed in perspective, this January’s sales were slightly higher than the January average in the years preceding 2009 when the economy faced recession.
The average price of a home this January hit $409,058, up 19 per cent compared with $343,632 in the same month last year.
TREB warned comparisons to last year will continue to be extreme in the first quarter of this year as “we continue to make comparisons to weak market conditions at the beginning of 2009.”
Jason Mercer, senior manager of market analysis for TREB said sales and price growth is expected to be slower in the second half of this year.
Source: Tony Wong, Toronto Star - Feb 3, 2010
Wednesday, January 13, 2010
GTA's office vacancy rate rises
The impact of the recession can still be felt in the Greater Toronto Area's office market, according to a report released by Colliers International Monday, as weak demand and an influx of new office space pushes up the commercial vacancy rate .
The office vacancy rate in the GTA continued its upward trend reaching 6.1 per cent, or 11.3 million square feet at of the end of 2009, the winter 2010 semi-annual office & industrial market reports and forecast from Colliers said. This represents an increase of 20 per cent in vacancy levels compared with 2008.
Against this economic backdrop, the average asking net rent in Toronto's office market maintained its downward trend, dropping by more than nine per cent from $17.83 per square foot in Q4 of 2008 to $16.20 per square foot at of the end of 2009.
Colliers' analysis and forecast for 2010 calls for a further, yet moderate decline in average asking net rent to the level of $16 per square foot as the vacancy rate is expected to peak at 6.9 per cent. These trends are expected to reverse in 2011.
“Historically there has been a lag between economic recovery and its impact on the GTA office market, however improvements in market conditions are imminent,” said John Arnoldi, managing director with Colliers International in Toronto. “While in some market nodes there is still disparity between landlord and tenant expectations, we've observed that this gap is narrowing and expect this trend to carry on in 2010.”
The challenging economic realities of 2009 have also affected the sub-lease market in the GTA. The growing number of companies that have been looking for ways to reduce overhead and utilize unused office space drove the GTA sublease market to expand by 48 per cent compared with the end of 2008, now surpassing 1.1 million square feet or 10 per cent of total vacancy.
“What's interesting to note is that in the latter half of 2009, the amount of vacant sublet space actually decreased by three per cent from early year increases, showing signs of potential recovery,” Mr. Arnoldi adds.
Other highlights
- Leasing activity in the GTA's industrial market remained low in 2009 with an availability rate of 6.3 per cent (45.5 million square feet). This high level of vacant space hasn't been recorded since 1997.
- In 2010, GTA's industrial markets will add 2.3 million square feet of new supply scheduled to be completed, below the annual average of 7.3 million square feet per year, over the past 10 years.
- Industrial average asking net rents continue to drop between the end of 2008 and 2009, decreasing by 15 per cent as landlords align themselves with market expectations.
- The office vacancy rate in downtown Toronto grew from 4.5 per cent in 2008 to 5.3 per cent at the end of 2009. Asking net rent dropped by more than $3 per square foot to $21.38.
Source: The Globe and Mail
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
Friday, December 04, 2009
In Toronto, a hot market has some bidders feeling burned
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,
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,
Thursday, November 05, 2009
TREB Reports Strong Growth in October MLS Transactions
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
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
Wednesday, October 21, 2009
October Mid-Month Housing Statistics
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
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
Saturday, October 03, 2009
Almost 600,000 Square Feet Leased In August
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
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
Tuesday, September 01, 2009
GTA REALTORS® Report August Mid-Month Resale Market Figures
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
"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
Tuesday, August 11, 2009
GTA REALTORS® report resale record in July
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
"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
Tuesday, August 04, 2009
Over 500,000 Square Feet Leased In June
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
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
Friday, June 19, 2009
Condo resales are on a roll
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
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
Thursday, June 11, 2009
GTA May Resale Housing Sales Higher Than Last Year
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
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
Monday, May 25, 2009
Greater Toronto Resale Housing Sales Up in First Half of May
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
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
Tuesday, May 12, 2009
Municipal Politicians to Discuss Taxes on Property in the GTA at Toronto Real Estate
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
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
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