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"Be miserable. Or motivate yourself. Whatever has to be done, it's always your choice." - Wayne Dyer FEBRUARY SALES and AVERAGE PRICE INCREASE ANNUALLY
March 3, 2010 - Greater Toronto REALTORS® reported 7,291 sales through the Multiple Listing Service®  (MLS®) in February, representing a 77 % increase over February 2009. The average price for these transactions was up 19 % year-over-year to $431,509. Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.
“Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise home types. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said TREB President Tom Lebour. “This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.”
New listings also increased in February, climbing 24 % compared to the same month last year. “Annual growth in new listings is expected to continue. New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable single-digit rates of price growth.” FEDERAL GOVERNMENT CHANGES MORGAGE RULES
February 16, 2010 -- The federal government has announced changes to the rules for government-backed insured mortgages (less than 20 percent down payment) as follows:
All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms.
Reduced maximum amount that can be withdrawn in refinancing a government-backed insured mortgage to 90 per cent from 95 per cent of the value of the home. 
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. Borrowers purchasing owner-occupied residential properties will still be able to access government-backed mortgage insurance with a 5 per cent down payment.
Additional detail is available here or copy and paste link in the browser
http://www.fin.gc.ca/n10/data/10-011_1-eng.asp.
Background: Canada's Housing Market Remains Strong
Canada's housing market remains healthy and stable. According to the International Monetary Fund, our housing market is fully supported by sound economic factors, such as low interest rates, rising incomes and a growing population. Moreover, mortgage arrears—overdue mortgage payments—have also remained low. Today's announcement is part of the Government's policy of proactively adjusting to developments in the housing market that could take root and cause instability. These steps are timely, targeted and measured, and will reinforce the importance of Canadians borrowing responsibly and using home ownership as a savings mechanism. Measures Announced Today- Today, the Government announced three changes to the standards governing government-backed mortgages: 1. Qualifying at a Five-Year Rate
Current interest rates are at record low levels, which has improved the affordability of housing for Canadians. It is important that Canadians borrow prudently and are able to manage their debt loads when interest rates rise. The adjustments to the mortgage framework will require mortgage insurers to ensure that borrowers qualify for their mortgage amount using the greater of the contract rate or the interest rate for a five-year fixed rate mortgage when calculating the GDS and TDS ratios. This measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future. 2. Limit the Maximum Refinancing Amount to 90 per cent of the Loan-to-Value Ratio
Borrowers seeking financial flexibility can currently refinance their mortgage and increase the amount they are borrowing on the security of their home up to a limit of 95 per cent of the value of the property. This type of refinancing lowers the borrower's equity in their home. The adjustments today will lower the maximum amount of the mortgage loan in a refinancing of a government-backed high ratio mortgage loan to 90 per cent of the value of the property, consistent with the principle that home ownership is a tool for savings. 3. Discouraging Speculation by Requiring a Minimum Down Payment of 20 per cent for non-owner-occupied properties
This measure will require a minimum down payment of 20 % for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. Currently, borrowers may purchase a residential property with a 5 per cent down payment. Today's change will require a 20 per cent down payment for small (i.e., 1- to 4-unit) non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (e.g., borrowers purchasing a duplex to live in one unit and rent out the other) will still be able to access government-backed mortgage insurance with a 5 per cent down payment. Moving to the New Framework These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010. Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010. GTA REALTORS® REPORT MID-FEBRUARY RESALE HOUSING MARKET FIGURES
TORONTO, February 18, 2010 -- Greater Toronto REALTORS reported 3,555 sales through the Multiple Listing Service during the first two weeks of February. This represented a 74 % 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 % 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 % increase over 2009. New Listings within the Toronto Real Estate Board boundaries were up 15 % 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." Summary Of February Sales And Average Price
2010 2009 Sales Average Price Sales Average Price City of Toronto ("416") 1,430 $471,958 816 $400,467 Rest of GTA ("905") 2,125 $401,760 1,228 $341,013 GTA 3,555 $429,997 2,044 $364,748 Source: Toronto Real Estate Board MITIGATING THE NEW HST TAX THREAT
February 19, 2010 - Being in the dog days of winter, I’m certain a lot of people are dreaming longingly of summer weather, backyard barbecues, and long weekends. For many Canadians, Canada Day is always the unofficial start of the summer season. Unfortunately, this year, Canada Day is also the start of something a little less inspiring: the provincial government’s new Harmonized Sales Tax (HST). Not exactly a nice way to celebrate our nation’s birthday. What does the HST mean for you? In a nutshell, this tax will expand the provincial eight percent sales tax to apply, as of July 1, 2010, to the things that are currently applicable to the federal Goods and Services Tax (GST). This means that home buyers will have to pay PST on numerous items that they currently do not, including home inspection fees, legal fees, moving costs, home appraisals, and real estate service fees or commissions. For the average home buyer in the Greater Toronto Area, the HST will mean about $2,000 in new taxes. Fortunately, however, there is still action that the provincial government can, and should, take to soften the HST’s blow, particularly for home buyers. Most importantly, the provincial government should take a serious look at its current Land Transfer Tax (LTT), which, if left as-is, would mean that home buyers are paying, not two sales taxes (provincial and federal), but three! The provincial LTT is, essentially, a sales tax on home buyers, which is calculated as a percentage of the purchase price of their home. For the average GTA home buyer, the provincial LTT costs about $4,000, up front. That’s a pretty hefty sales tax. To make things worse, if you’re buying a home in the City of Toronto, you also have to pay a Municipal Land Transfer Tax of about the same amount. REALTORS® have always voiced concern about land transfer taxes. Simply put, these are unfair taxes that target home buyers. Furthermore, land transfer taxes are bad policy because they make home ownership more difficult to achieve. When the provincial government first proposed the HST, provincial politicians said that the HST was not intended to generate more revenue for the Province and that, in fact, it would be revenue neutral because of the credits that businesses would be able to claim under the new system. Well, REALTORS® strongly believe that the government should also take action to ensure that the taxes charged to home buyers also remain neutral. With the HST heading towards implementation, the best way for the government to offset its impact on homebuyers would be to take action on its unfair Land Transfer Tax. For months, the provincial government has been going to great effort to convince Ontarians that the HST is not a tax grab and is simply a re-design of the tax system to improve efficiency and economic competitiveness. Whether or not that is true is debatable, but it’s clear to REALTORS® that, by taking action on its Land Transfer Tax to offset the HST on homebuyers, the government has a clear opportunity to put its money where its mouth is. New HST TAX Transition Rules
October 21, 2009 -- The provincial government has provided rules/guidance on how it will transition to the  implementation of the proposed Harmonized Sales Tax. Background
The provincial government has passed legislation to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST). * The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1, 2010; however, note transition rules below.
* HST will not apply on the purchase price of re-sale homes.
* HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
* HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.
Transitional Rules for New Housing - Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.
Additional Transitional Rules - Where services straddle the HST implementation date of July 1, 2010, the tax charged for the service may have to be split between the pre-July 2010 and post-June 2010 periods. However, the HST will generally not apply to a service if all or substantially all (90% or more) of the service is performed before July 2010.
Four key timelines are important (see below). All are based on the earlier of the time the consideration is either due (In general, an amount is due on the date of the invoice or the day required to be paid pursuant to a written agreement), or is paid without having become due. If consideration is due or paid,
Before October 15, 2009, HST will generally not apply (however, see above transition rules for new housing).
From October 15, 2009 to April 30, 2010, certain business that are not entitled to recover all of their GST/HST paid as input tax credit may be required to self-assess the provincial component of the HST with respect to goods or services supplied after June 30, 2010.
From May 1, 2010 to June 30, 2010, HST will generally apply for services supplied after June 30, 2010.
After June 30, 2010, HST will generally apply. An exception to this rule would be where ownership of the property is transferred before July 2010 or the invoice relates to services provided before July 2010.
With regard to the lease or license of goods, including non-residential real property, HST will generally apply to lease intervals or payment periods on or after July 1, 2010 and the general rules noted above will apply. However, where a lease interval begins before July 2010 and ends before July 31, 2010, it is not subject to HST.
With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.
More Detail - Additional detail on the transition rules is available by calling the provincial government enquiry line at 1-800-337-7222.
GTA REALTORS® REPORTING JANUARY MID-MONTH HOUSING STATISTICS
TORONTO, January 18, 2010 - Greater Toronto REALTORS® reported 1,749 existing home sales on the Multiple Listing Service (MLS®) during the first two weeks of January. This result was almost double the 888 sales reported for the same period in 2009, when sales had dipped to a recessionary low. “We have had a strong start to 2010,” said Toronto Real Estate Board President Tom Lebour. “Widespread sales growth in terms of geography and housing type indicates that many households remain confident in their ability to purchase and pay for a home over the long-term.” The average price for transactions in the first two weeks of January was $395,307, compared to an average of $332,495 for the same period in 2009. “Double-digit average annual price growth will continue through the first quarter of 2010 as sales remain high relative to listings and we continue to make comparisons to last year’s winter downturn,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Summary Of January Sales And Average Price
January 2010 2009
Sales Average Price Sales Average Price
City of Toronto ("416") $708 $401,120 $369 $350,835
Rest of GTA ("905") $1,041 $391,353 $519 $319,455
GTA $1,749 $395,307 $888 $332,495
EXPECT STRONG START TO 2010 TO CONTINUE
More than 4,986 homes changed hands throughout the Greater Toronto Area in January, far exceeding last January’s reces sionary low of 2,670 transactions. Most significantly, last month’s figure is comparable to sales in January 2008 and 2007, the latter of which finished as the strongest year on record.
As we approach the traditionally busy spring season, we can anticipate an increase in activity. There are a number of reasons why spring usually shapes up to be an active period of the year for the resale housing market. Families often coordinate their moves with the school calendar, purchasing in spring to provide for a late summer closing. Others are simply motivated by every spring’s promise of a fresh start. Many buyers are also prompted to begin their search when the snow has melted, making streets and properties more accessible. Sellers meanwhile, choose this time of year as it affords the opportunity to extend household fix-ups to the outdoors, contributing to improved curb appeal and salability.
There are currently 12,052 properties available in the GTA through the Multiple Listing Service and this figure is expected to climb in the coming months as homeowners react to the recent months’ market strength. More competition means that house prices will likely stabilize however; increased activity will also necessitate quick decision-making.
By contrast, typically the summer months afford many of the same benefits as the spring market, without the fast pace. Last summer’s activity though, was markedly stronger than previous years, reflecting both pent up demand from the recessionary months prior and an emerging all-season attitude toward real estate in our city.
During the fall months another spike in activity is usually seen. Typically, the fall market reaches a crescendo in October, when between 6,000 and 8,000 homes change hands, in comparison to more than 9,000 transactions that often take place at the height of the spring season in May.
Throughout the winter months, we generally see more moderate activity. This can benefit buyers, who have the opportunity to achieve an attractive purchase price from motivated sellers. There are however, also advantages for sellers. Buyers who are searching for a home at this time of the year tend to be serious about making a purchase and as such, ineffectual showings are not the norm. Houses often look their holiday best throughout the winter months as well, which can yield favourable returns. Tom Lebour, Toronto Real Estate Board PRESIDENT’S COLUMN AS IT APPEARS IN THE TORONTO SUN, February 12, 2010BUSY DECEMBER TORONTO, December 17, 2009 - Greater Toronto REALTORS reported 3,079 existing home transactions in the 1st two weeks of December compared to 1,487 in 2008. The strong growth represents both increased home ownership demand and the fact that we are comparing the recovery phase of the sales cycle this December with the contraction phase experienced last winter Year-to-date sales, at 84,888, were up 16 % compared to the same period last year and have moved in line with the healthy levels experienced in the 2004 through 2006 period.  "We experienced a very strong and broad based recovery in the second half of 2009," said Toronto Real Estate Board President Tom Lebour. "The rebound in the housing sector speaks to the confidence that households have in overall economic recovery.” The average resale home price during the first two weeks of December rose 17 % to $423,103. The year-to-date average was $395,411, up 4 % compared to the same period in 2008. “The double-digit price growth we have experienced since September will continue through the first quarter of 2010. Average price growth will move to a sustainable pace in the spring as listings increase," according to Jason Mercer, TREB's Senior Manager of Market Analysis. Summary Of December Sales And Average Price December 2009 2008 Sales Average Price Sales Average Price City of Toronto ("416") 1,343 $460,828 619 $382,759 Rest of GTA ("905") 1,736 $393,918 868 $344,887 GTA 3,079 $423,103 1,487 $360,652 Source: Toronto Real Estate Board HOT NOVEMBER TORONTO, December 3, 2009 - Greater Toronto REALTORS® reported 7,446 sales in November – slightly more than double the November 2008 result when GTA home sales had dipped markedly due to the economic downturn. Year-to-date sales were up 14 % compared tothe first 11 months of 2008. “This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006,” said Toronto Real Estate Board President Tom Lebour. “Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.” The average price for November transactions was up 14% year-over-year to $418,460. The average price year-to-date was up 4 % to $394,464. “Very strong annual growth rates for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter," according to Jason Mercer, TREB's Senior Manager of Market Analysis. “As we move into the spring, growth rates will move to more sustainable levels.” Summary Of November Sales And Average Price November 2009 2008 Sales Average Price Sales Average Price City of Toronto ("416") 3,212 $450,079 1,523 $390,225 Rest of GTA ("905") 4,234 $394,474 2,117 $353,012 GTA 7,446 $418,460 3,640 $368,582 Source: Toronto Real Estate Board Toronto Real Estate Market is Breaking Records! The average home price in Toronto is at all-time high! 10% Increase in Price 28% Increase In Sales 42% Decrease in Listings (This statistics is based on Toronto Real Estate Board, City of Toronto, Sept. 2008 vs. 2009) Low mortgage rates and higher consumer confidence has significantly increased the number of home buyers on the market, and with less listings to choose from, demand for homes has increased. Low inventory of homes for sale make this time a good time to put your home on the market, and extremely low mortgage rates makes this time a great time to buy. MLS® HOME SALES GROW STRONGER IN THE THIRD QUARTER
OTTAWA – October 15th, 2009 – National resale housing activity climbed to the highest level of any third quarter on record.
Actual (not seasonally adjusted) home sales via the Multiple Listing Service® (MLS®) Systems of Canadian real estate boards totalled 135,182 units in the third quarter of 2009, according to statistics released by The Canadian Real Estate Association (CREA). This is the highest level of activity on record for the period from July to September. The number of transactions was up 18 % from the third quarter of last year, representing the biggest year-over-year increase since  early 2002.
Seasonally adjusted national MLS® home sales numbered 127,941 units in the third quarter, up 12 % from the previous quarter. Building on two previous quarterly increases, seasonally adjusted MLS® home sales activity now stands 48 % above the low reached in the fourth quarter last year.
“Momentum for sales activity remained strong throughout the third quarter,” said CREA President Dale Ripplinger. “Low interest rates, rebounding consumer confidence and an improving overall sense of economic security continue to draw homebuyers to the housing market.”
Seasonally adjusted sales activity in the third quarter was up from the previous quarter in over 80 % of local markets. Quarterly activity increases in Vancouver (34 %), Toronto (11 %), and Calgary (19 %) contributed most to the national increase in activity.
Year-over-year activity increases in Toronto (28 %) and Vancouver (124 %) were the driving force behind the increase in actual (not seasonally adjusted) national sales activity in September.
Climbing to $327,736, the national MLS® residential average price rose 11 % from the same quarter last year. The national average price continues to be skewed upward by a sustained increase in sales activity, including a sharp rebound in activity at the higher end of the price spectrum, in some of Canada’s priciest markets.
The national MLS® residential average price surpassed all previous monthly levels in September 2009, rising 13.6 % year-over-year to $331,602. July and August also posted new average price records for their respective months. A number of provinces set new average price records for the month of September, and Ontario posted the highest average price on record.
The weighted national MLS® average sale price was up 9.3 % year-over-year in September 2009.
An increase in sales activity and fewer new listings are drawing down inventories compared to year-ago levels. There were 208,215 homes listed for sale on the MLS® Systems in Canada at the end of September 2009, down 16 % from a year earlier. This is the 5th consecutive year-over-year decline in active listings, and the largest decline in more than six years.
“Headline average price increases over the rest of the year are expected to prompt sellers to return to the market after having retreated to the sidelines late last year and earlier this year,” he added. “An increase in new listings will help keep a lid on price increases. Price increases over the rest of 2009 and early next year are likely to reflect declining average prices late last year and earlier this year.”
PLEASE NOTE: The information contained in this news release combines both major market and national MLS® sales information from the previous month. The Canadian Real Estate Association has previously released these separately FALL UP, AS HOME SALES CLIMB October 13, 2009 - The Toronto Real Estate Board (TREB) released its September results earlier this week, reporting that September sales totaled 8,196, representing an increase of 28 % compared to the same month last year. The growth in the average selling price was even stronger, coming in at 10 % pushing the average price to almost $407,000. The year-to-date totals are also positive, with sales and average price through the first three quarters of the year up 4.5 % and 1.5 % respectively. This is encouraging, given the economic challenges we have faced over the past year!
“The number of existing home sales in the fourth quarter will be well-ahead of the volumes experienced during the last three months of 2008. I am confident that the number of transactions will push through the 80,000 mark and perhaps be hovering around 85,000 when all is said and done this year. That will put us in line with the level of sales experienced in the 2004 to 2006 period – some of the best years on record under the current TREB boundaries.” said Jason Mercer, TREB’s Senior Manager of Market Analysis
It is also Mr. Mercer’s opinion that the average selling price will be above last year’s level as well:
“The resale home market has tightened up substantially since the spring. Sales, our measure of demand, have risen strongly relative to listings, our measure of supply. The result has been an increasing rate of price growth. The average price for 2009 will be hovering around $390,000 – up by approximately 2.5 per cent compared to 2008.”
Interest rate decisions by the Bank of Canada over the past year clearly played a role in keeping the housing market buoyant in the face of a recession. Interest rates moving to record lows only served to help an already affordable GTA housing market. Enhanced affordability served to attract a broad array of home buyers. This is why we have seen more transactions in virtually all price ranges and all major housing types across the region.
In Se ptember, low-rise home sales including single-detached, semi-detached and town houses grew by 25 % compared to last year. High rise condominium sales were up an impressive 34 % over last year. The average annual rate of price growth for both high and low-rise home types was more or less the same.
The fact that the recovery in the GTA housing market has occurred in all sectors of the housing market – from housing types/prices catering to first-time buyers through to higher end properties selling for over $1,000,000 – suggests that the housing market is once again firing on all cylinders after a relatively short downturn. This speaks to the fact that consumers have remained confident in ownership housing as a solid long-term investment.
GTA HOUSING MARKET REBOUND CONTINUES IN SEPTEMBER October 5, 2009 - In September 2009, Greater Toronto REALTORS® reported 8,196 sales, up 28 % from September 2008. The average price for September transactions was $406,877 – up by 10 %compared to the same month last year.
“We have experienced an increasing rate of existing home price growth in the GTA as sales have continued outpace 2008 results,” said TREB President Tom Lebour. “Consumers have remained confident in ownership housing as a long-term investment.” Year-to-date sales, at 66,437 were up 4.5 % compared to the first nine months of 2008. Average price, at $388,417 was up by almost 1.5 %.
“Existing home sales will finish strong this year, pushing through the 80,000 mark and moving in line with some of the best years on record under the current TREB market area,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis.
Median Price - In September, the median price was $347,000, from the $322,000 recorded during September of 2008. BANK OF CANADA KEEPS INTEREST RATES ON HOLD
The Bank of Canada held its benchmark overnight lending rate steady at 0.25 % at its setting on September 10th, 2009. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 0.5 %.
The Bank said that, in line with its expectations, aggressive policy stimulus and the stabilization of global financial markets are supporting the beginnings of a recovery in Canada and elsewhere.
In its July Monetary Policy Report, it expected inflation to bottom out in the fourth quarter of 2009. In its September announcement to hold interest rates steady, the Bank moved that timetable forward to the third quarter, but reiterated its forecast for inflation to return to its 2 % t target in the second quarter of 2011.
The Bank’s commitment to keep interest rates on hold until the second half of next year hinges on its outlook for inflation. Since inflation is not expected to pick up sooner than it previously expected, the Bank repeated its commitment to keep interest rates on hold.
“The bottom line for interest rates is that they are as low as they can go, so the Bank can’t drive them down any further in an attempt to boost economic growth and take the shine of the dollar,” said CREA Chief Economist Gregory Klump. “That said, the Bank can take extraordinary measures to prevent a rapid or speculative run-up in Canadian dollar, and financial markets have judged the Bank’s threats to do so as credible. Improving credit market conditions have enabled lenders to reintroduce discounts off posted mortgage interest rates. Discounts of up to a percentage point can be negotiated, depending on lender-client relationship. (CREA 09/10/2009) Samples of some discounted residential mortgage rates in October: | Term | 6 Month | 1 Year | 2 Year | 3 Year | 4 Year | 5 Year | 7 Year | 10 Year | Variable
Rate | Prime
Rate | | Posted Rates* | 4.60% | 3.75% | 4.05% | 4.65% | 5.14% | 5.55% | 6.80% | 6.90% | | Best Rates* | 2.75% | 2.65% | 3.05% | 3.39% | 3.75% | 3.69% | 5.15% | 5.15% | 2.25% | 2.25% |
*Interest Rates are provided for information purposes only and are subject to change at any time without notice. The products listed above are available only in Canada to Canadian residents. Rates shown are for single family residential properties only and are subject to meeting all lenders credit granting criteria. Rates shown above may be specific to the sender and some conditions may apply. E&OE. GTA REALTORS® Report Resale Record in July TORONTO, August 6, 2009 - 9,967 sales, up 28 % from July 2008. The average price for July transactions was $395,414 – up by 6 % 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 % 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 GTA MAY RESALE HOUSING SALES HIGHER THAN LAST YEAR TORONTO, June 3, 2009 - .”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 81,300 “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 take 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." Sales Average Price: 1.) City of Toronto ("416") - 2009 Sales:3,777, Average Price:$432,478; - 2008 Sales:3,711, Average Price:$434,271; 2.) Rest of GTA ("905") - 2009 Sales:5,812, Average Price:$371,649; - 2008 Sales:5,700, Average Price:$374,629; 3.) GTA - 2009 Sales:9,589, Average Price:$395,609; - 2008 Sales:9,411, Average Price:$398,148
A Spring housing market that was more active than anticipated has prompted a change to the MLS® home sales forecast issued by The Canadian Real Estate Association for the rest of 2009, and for 2010. National home sales activity is forecast to be down 14.7 % to 370,500 units in 2009. This is slightly less than the reduction in activity predicted in CREA’s forecast issued last February. The forecast decline in annual activity was trimmed to reflect a stronger than expected rebound in activity in British Columbia and Ontario in the first quarter of 2009. Forecast declines in annual activity were reduced for these provinces. They were also shaved for Manitoba, Quebec, New Brunswick, and Prince Edward Island to reflect stabilizing trends in sales activity in these provinces. National MLS® home sales activity is forecast to rebound by 7.2 % to 397,000 units in 2010. This is a slightly weaker rebound than predicted in CREA’s previous forecast. The revision reflects recently downgraded forecasts for economic growth next year. The rebound in activity in 2010 is forecast to be biggest in British Columbia and Alberta. New listings on MLS® systems in British Columbia, Alberta and Ontario are forecast to continue easing following the peak reached last year. New listings are also expected to shrink in Saskatchewan, Quebec, New Brunswick, and Nova Scotia. Fewer new listings will further stabilize the resale housing market as sales activity draws down inventories. The national MLS® average home price is forecast to decrease 5.2 % in 2009, led by average price declines in British Columbia and Alberta. By contrast, the average home price is forecast to rise in Manitoba (4.3 %), Price Edward Island (4.2 %) and Newfoundland & Labrador (10.9 %). CREA’s previous forecast predicted a decline in the national average price of eight per cent in 2009. The weighted national MLS® average price is forecast to decline 3.6 % in 2009, and hold steady in 2010. CREA’s previous forecast predicted the weighted national average price for MLS® homes sales would decline by 6.4 per cent. “Monthly resale housing activity improved as the first quarter progressed, entering the second quarter on a rising trend and closing in on levels last seen before it fell sharply late last year,” said CREA Chief Economist Gregory Klump. “It will take time for housing inventories to be drawn down enough to put new home construction on a stronger footing, but the balance between resale housing supply and demand is improving in a number of major markets. The national average price has begun to rebound from the recent low reached in January, and is forecast to begin rising modestly above year-ago levels in the fourth quarter of 2009.” (CREA 14/05/09) RESALE HOUSING MARKET CONTINUES TO RECOVER IN APRIL MLS® home sales activity increased for the third time in as many months in April 2009, according to statistics released by The Canadian Real Estate Association (CREA). The national average price also rose in April, to within short reach of the record levels reached one year ago. Seasonally adjusted national home sales activity climbed 11.2 % in April 2009 compared to the previous month. This is the largest month-to-month increase in activity in more than five years. MLS® home sales activity reached its highest level in seven months, with 34,838 units trading hands nationally via the MLS® in April on a seasonally adjusted basis. The increase in April builds on gains of 10.3 per cent in February and 7.7 % in March. Seasonally adjusted activity now stands 32 per cent above the lowest level in a decade that was recorded in January 2009. Seasonally adjusted sales were up from March levels in 70 % of local markets, with gains in Toronto (10 %), Vancouver (30 %), Montreal (15 %), and Calgary (31 %) contributing most to the overall increase in monthly activity. Actual (not seasonally adjusted) MLS® home sales totaled 43,473 units in April 2009, down 11.8 % from the same month one year ago. Year-over-year declines have been shrinking since dropping a record 42.2 % in November 2008. “REALTORS® know that several factors have led to this market situation,” says Regina Broker Dale Ripplinger, President of The Canadian Real Estate Association. “First, price adjustments in some markets have helped affordability. Second, lenders do have money for people and properties that qualify, although some are being more stringent. The third factor involves consumer confidence, which has risen in the housing market through the Spring.” The last factor, CREA’s President adds, is that sellers have realized that realistic pricing is key, and that is very much driven by local factors. “Homes are only worth what a buyer is willing to pay.” The national MLS® residential average sale price in April ($306,366) stands 3.2 % below April 2008, when it reached its pre-recession peak. The MLS® residential average price broke all previous monthly records in Saskatchewan, Manitoba, Quebec, and Nova Scotia. The supply of homes coming onto the MLS® market continued trending downward in April. Seasonally adjusted MLS® residential new listings edged lower by 1.8 % from the previous month to 66,843 units, the lowest level since June 2006. Seasonally adjusted new residential listings in April were 16.4 % below the peak reached in May 2008. With sales activity rising strongly and new listings trending downward, the balance between supply and demand is firming up in British Columbia, Alberta, Ontario, and Quebec. As a result, in April 2009 national sales as a percentage of new listings reached the highest point since February 2008. The residential dollar volume for MLS® sales climbed 12.3 per cent from the previous month to reach $10.2 billion. This is the biggest increase since December 2001, and first time since September 2008 that dollar volume surpassed $10 billion. “If the trend for MLS® sales activity over the past few months persists, the number of transactions in May could surpass the pre-recession levels of September 2008,” said CREA Chief Economist Gregory Klump. “In the recessions of the early 1980s and 1990s, sales activity bottomed out before the job market or even the economy did. Improved affordability may result in Canadian existing home sales leading the economic recovery this year.” (CREA 14/05/09)
March 6, 2009 - As we approach the spring season and see real estate activity picking up, Realtors remain optimistic about the future of the GTA resale housing market. With reports such as RBC’s Homeownership Survey highlighting that Canadians believe in the long-term value of a home, now is a great opportunity to invest in that Canadian dream. Toronto Real Estate Board Members reported 4,120 sales in February 2009, compared to 6,015 sales recorded in February 2008. The average home price was $361,305 last month, compared to $382,048 during the same month last year. It is very important to note that a considerable number of transactions continued to take place in February 2009. Motivated buyers and sellers, who were aware that market conditions changed over the past few months, were able to negotiate transactions acceptable to both parties.
On a month-over-month basis, sales and average price were above January levels of 2,670 and $343,632, respectively. The housing market is seasonal. Traditionally, sale volumes and average price climb in the first half of the year, reaching their highest levels in late spring before trending lower from July onward. Now, while the economic downturn has had an impact, the GTA housing market is resting on a solid foundation. Current home prices and mortgage rates suggest that GTA homes have become more affordable on average. A greater number of homebuyers could take advantage of this affordability once their positioning in the economy becomes more certain. Beyond spring’s real estate market, which typically experiences more activity, the demand for ownership housing will remain strong in the GTA over the long term because of steady population growth driven by immigration. The Toronto area is Canada’s single greatest beneficiary of immigration. According to Statistics Canada, this country welcomed 247,202 permanent residents in 2008 — 70,000 more than in 1998, and well within the government’s planned range of 240,000 to 265,000 new permanent residents for 2009.
Greater Toronto Realtors are an integral part of the real estate transaction process. TREB members are uniquely positioned to help homebuyers and sellers adapt to changing market conditions. And, importantly, TREB and its members continue to advocate public policies that do not threaten affordability but support home ownership in the GTA, such as lower taxation and less regulation. Maureen O’Neill is president of the Toronto Real Estate Board, a professional association that represents 28,000 Realtors in the Greater Toronto Area. (TREB President's Column as it appears in the Toronto Sun’s Resale Homes and Condos section) MLS® HOME SALES EASE IN JANUARY
The number of properties sold via the MLS® systems of real estate boards in Canada slipped further in January 2009, according to statistics released by The Canadian Real Estate Association (CREA). Seasonally adjusted residential MLS® sales activity numbered 26,376 units in January 2009. This is 3.1 % below activity in December 2008, and a decline of 37.3 % in activity compared to January 2008. Actual MLS® resale housing activity totaled 16,343 sales nationally in January 2009, down 40.9 % on a year-over-year basis. Only Prince Edward Island recorded an increase in residential units sold, up 2 % compared to January 2008. The supply of homes for sale remains high, but is trending lower nationally. The decline in new MLS® listings is trending lower in line with sales activity in many regions. Seasonally adjusted new MLS® residential listings numbered 69,875 units in January 2009. This is down 3 % from the previous month, and 13 % below the peak reached in May of last year. The actual (unadjusted) number of new listings on the MLS® systems of real estate boards in Canada posted the largest year-over-year decline on record in January 2009, falling 14.2 % from the level in January 2008. The decline in supply to meet lower demand is expected to help stabilize the resale housing market balance and put a floor under prices. “There is no doubt the market is not as active as it was last year, but there are certainly buyers and sellers in the Canadian residential market,” says the President of the Canadian Real Estate Association, Calvin Lindberg of Vancouver. “In many markets, transactions have a tendency to take longer because of negotiations between the two. Realistic pricing is the key to the sale of residential property in this market. Conditions also vary from one neighbourhood to another, so buyers and sellers should know those details.” “The increase in the Home Buyers’ Plan and the First-Time Home Buyers’ Tax Credit to cover closing costs are both important for first time home buyers, and they are an important factor in an active housing market.” The national average price for home sales via the MLS® in January 2009 is down 11.3 % compared to January 2008. The price trend is similar but less dramatic for the weighted national (and major market: Toronto, Kitchener-Waterloo, St. Catharines, Sudbury, Hamilton-Burlington, Edmonton, London & St. Thomas, and Windsor) MLS® average price, which compensates for changes in provincial (and major market) sales activity by taking into account provincial (and major market) proportions of privately owned housing stock. The weighted national MLS® average sale price was down 6.2 per cent year-over-year in January. The weighted major market MLS® average home sale price was down 4.6 per cent year-over-year in January. By contrast to year over year declines in the national and major market average price in January 2009, average prices were up from year ago levels in St. John’s, Halifax-Dartmouth, Quebec City, Regina, Saskatoon, Saguenay, Oshawa, Winnipeg, Thunder Bay, Montreal, Ottawa, and Gatineau. Seasonally adjusted residential dollar volume for MLS® sales totaled $7.4 billion in January 2009, down 3.7 per cent from the previous month and the lowest level since May 2003. CREA Chief Economist Gregory Klump said:“Affordability has improved and will be better during the spring home buying season in many markets compared to last year. However weak consumer confidence is likely to continue squeezing sales activity during the spring home buying season.” (CREA 13/02/09) OVER 3,600 SALES IN NOVEMBER December 4, 2008 - TREB Members recorded 3,640 sales in November 2008 from the 7,313 sales recorded during the same period last year in the GTA, TREB President Maureen O’Neill announced today.
The average GTA price in November 2008 was $368,582. During the same period last year, the TorontoMLS system recorded an average of $393,747, and in November of 2006 overall GTA prices averaged $355,727.
The 2008 year-to-date sales for the GTA was recorded at 72,086 from last year’s 88,695. The year-to-date GTA average price was $379,489 from last year’s $375,445
Within the 416 area (City of Toronto) there were 1,523 sales during November 2008. During the same month last year, 3,426 sales were recorded. The average price in the 416 area was $390,225 compared to $433,859 in November 2007 and $381,188 in 2006. The year-to-date 2008 average price in the 416 area is $411,155 from last year’s $411,640.
The 905 Region recorded 2,117 sales last month, compared to the 3,887 sales transacted during November of 2007. The average price in the 905 Region was $353,012 last month from $358,391 in November of 2007 and $335,522 in November 2006. The year-to-date average price in the 905 Region for 2008 was $359,245 from $349,774 in 2007.
The Median Price for November 2008 was $312,250, compared to $325,000 in November of 2007 and $298,000 in 2006. The YTD Median for the first 11 months of 2008 was $325,000, compared to $318,000 during the same time-frame in 2007, and $300,000 in 2006. Changing GTA Resale Housing Market Reflects Economic Times October 17, 2008 - Activity in the GTA resale housing market moderated considerably during the first half of October with 2,700 homes changing hands. Sales volumes in the GTA decreased 18 % compared to the first half of October 2007, when 3,297 transactions were recorded and are down 10 % 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 1st half of this month. This represents a 21 % decline from the 1,446 sales that took place in the same period a year ago and a 13 % 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 % decrease from the 1,851 transactions that took place during the same timeframe in 2007 and down 8 % 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 % from $399,013 recorded the comparable period in 2007.
In the City of Toronto the current average price $375,804, a 15 % 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 8 % 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 % 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 % of the list price.”
Increased sales activity was noted in specific pockets located throughout the GTA. Sales in Oshawa (E16) increased 15 % 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 % compared to the same period a year ago mainly due to strong attached row house sales. Downtown Toronto East (C08) experienced a 16 % overall increase in activity compared to mid-October 2007 primarily as a result of condominium apartment sales. Newmarket saw a 17 % increase in sales compared to the first half of October 2007 as a result of strong condominium apartment and semi-detached home sales. “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.” GTA RESALE HOUSING MARKET IN SEPTEMBER In the City of Toronto sales were less robust. The transactions recorded last month declined 11 % from the 2,854 sales in September 2007 and declined 5 % from the sales recorded in September 2006. Sales increased 6 % between September 2006 and September 2007. “We remain concerned about the Land Transfer Tax in the City of Toronto,” said Toronto Real Eastate Board President Ms. O’Neill. From a year-to-date perspective, the GTA resale housing market has declined 14 % from the 73,827 transactions recorded a year ago. Prices throughout the GTA however, have remained fairly stable. At $368,549, the average price of a GTA home in September has declined 3 % from $380,132 recorded a year ago. In the City of Toronto year-to-date sales have declined 16 % from last year’s figure of 30,059. Compared to the September 2006 average of $371,682 though, prices in Toronto for September 2008 have increased 6 %. In the 905 Region year-todate sales have declined 12 %. So far this year there have been 38,338 sales in the 905 Region. The current average price of $393,647 declined 6 % from the September 2007. 3,878 sales recorded last month are within 3 % of September 2007’s transactions, and within 2 % of September 2006’s. Sales in this region increased 2 % between September 2006 and September 2007. In the 905 Region, the average price of $352,071, increased marginally from the $351,641 recorded in September 2007, and was up 5 % from 2006 September average. “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 % 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. In Scarborough East (E08) transactions increased 22 % compared to September 2007 based on strong sales of all housing types. In Newmarket (N07) transactions increased 11 % compared to a year ago, driven mainly by strong condominium townhouse sales. Streetsville (W19) saw an 11 % sales increase due primarily to strong detached home 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. From a long-term perspective, buying a home remains a sound financial decision,”said Ms. O’Neill. GTA RESALE HOUSING REMAINS STEADY THROUGHOUT SUMMER MONTHS October 3, 2008 - The GTA resale housing market continued at a measured pace through September. With 6,424 homes changing hands last month, activity in the GTA declined 6 % compared to the September 2007 and declined 3 % compared to two years ago. The Bank of Canada held its benchmark overnight lending rate steady at three per cent at it’s setting on July 15th. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 3.25 per cent.
The Bank’s decision to hold interest rates steady aims to boost its inflation fighting credentials. Financial markets widely expected the Bank rate to be put on hold despite the lackluster outlook for Canadian economic growth. (July 15, 2008)
NEW MLS® RESIDENTIAL LISTINGS REACH NEW LEVELS
OTTAWA – July 15, 2008 – New listings of homes for sale on the Multiple Listing Service® (MLS®) in Canada’s major markets reached record levels in the first half of 2008, while sales activity retreated from the record levels reported in 2007, according to MLS® statistics released by The Canadian Real Estate Association (CREA).
New MLS® residential listings in Canada’s major markets numbered 332,958 units in the first six months of 2008, up 8.1 % from the previous record set in the same period last year. For the third time in as many months, seasonally monthly adjusted new MLS® residential listings topped 50,000 units in June 2008.
More new properties were listed in April, May, and June this year than in any other month on record. This pushed seasonally adjusted new listings to new levels in the second quarter of 2008, up 7.5 % from levels the previous quarter. New listings reached record or near-record levels in Toronto, Vancouver, Ottawa, Regina, and Saskatoon. This more than offset a decline in new listings in Edmonton and Calgary, which continue retreating from peaks in March.
By contrast to rising new listings, sales activity in the first half of 2008 was down compared to the same period of 2007, which was a record-setting year. Transactions declined by 13.3 % year over year to 169,265 units in the first half of 2008. Seasonally adjusted transactions fell on a month-over-month basis in the first two months of the year, with the February decline being the largest in more than four years. Activity in 2008 subsequently posted four consecutive monthly increases, but remains below where it stood at the end of last year.
GOVERNMENT CHANGES MORTGAGE RULES FOR CMHC
The federal government is taking action so Canada can avoid the kind of sub-prime mortgage meltdown plaguing the United States. Effective October 15th, 2008, 40-year mortgages with no money down will no longer be covered through the federal government insurance program administered by Canada Mortgage and Housing (CMHC). Instead, the longest amortization period for a Canadian mortgage insured by CMHC will be 35 years.
In addition, a buyer insured by CMHC will have to make a minimum down payment of five per cent of the home's value. Canadians already holding 40-year no-money-down mortgages won't be affected by the changes.
The regulations will apply to federal agencies such as the Canada Mortgage and Housing Corp., which has an estimated 60 % share of the mortgage insurance market. However, private-sector mortgage insurance rivals such as Genworth Financial, PMI Mortgage Insurance Co. Canada and AIG United Guaranty are free to offer the product.
One difference is that the federal government will no longer provide insurance that protects lenders in the event of a default by the insurers. (CREA 10/07/2008) STEADY GTA RESALE HOUSING MARKET IN MAY June 4, 2008 - The Greater Toronto Area resale housing market recorded 9,411 transactions in May. In a year-over-year basis the GTA average price increased 4 % to $398,148 in May from the May 2007 average of $382,787. Prices increased 3 % 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 5 % increase to $374,629 from $355,341 last May. “Price gains show that real estate continues to be a solid investment for the consumer. 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,” said Toronto Real Estate Board President Maureen O’Neill. “May’s sales figures represent a 16 % 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 % from last May’s 4,578 sales and down 6 % from May 2006. In the 905 Region, 5,700 transactions were recorded, which represents a 13 % 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 %, while Stouffville (N12) saw a 12 % increase in sales, driven mainly by detached home transactions. CONSUMER CONFIDENCE CONTINUES TO SLIDE June 3rd, 2008 - Reflecting rising fuel and food prices, national consumer confidence posted its third consecutive monthly decline in May 2008, dropping to its lowest level in more than a decade. Confidence fell in every region in May, with the largest decline in Ontario. In line with the national trend, the index of consumer confidence in Ontario also reached its lowest level in more than a decade. Consumer sentiment reached its lowest level in almost five years in British Columbia, while in the Prairie region it slid below any other point in more than seven years. In Quebec, sentiment stood about on par with levels recorded at the end of 2005. Consumer sentiment remained strongest in the Atlantic region, but still dipped to its lowest point since last April.With higher gas and food prices taking a bigger bite out of Canadian incomes, more survey respondents said their household budget had worsened in the past six months. More also said they expect their household finances to worsen over the next six months. But unlike the balance of sentiment about making major purchases and job growth, the balance of opinion about household budgetary outlooks remains positive, both nationally and in every region except the Atlantic provinces – where opinion turned slightly negative in May. (CREA 03/06/08) BANK HOLDS INTEREST RATES STEADY IN JUNE June 10, 2008 - The Bank of Canada held its benchmark overnight lending rate steady at three per cent on June 10th. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 3.25 per cent.
The number of new listings of homes for sale on the Multiple Listing Service® (MLS®) of real estate boards in Canada reached its highest level ever in April 2008, according to statistics released by The Canadian Real Estate Association (CREA). The rise in new listings outpaced a small gain in sales activity, resulting in a more balanced market. A similar trend was reported in the Association’s analysis of major markets, issued earlier in May. New MLS® residential listings in all markets in Canada rose 2.8 per cent on a seasonally adjusted month-over-month basis to 77,248 units in April 2008. Actual (unadjusted) new listings were up 20.3 % from April 2007. Actual (unadjusted) MLS® home sales activity was down 6.2 % in April compared to record levels a year ago. This is still the third highest level for sales during the month of April. Two new properties were listed for sale for every home that sold through the MLS® system of real estate Boards and Associations across Canada in April. This resulted in the most balanced resale housing market in more than nine years. A more balanced market means price gains are smaller. The national MLS® residential average price rose four per cent year-over-year to $317,619 in April 2008. This is the smallest year-over-year price increase in over six years. (CREA 23/05/08) BANK RATE CUT AGAIN IN APRIL The Bank of Canada cut its benchmark overnight lending rate one-half of one percentage point to three per cent on April 22nd. It also signaled further cuts in the near future. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, now stands at 3.25 per cent. The Bank now expects the U.S. economic slowdown to be longer and deeper than previously thought, resulting in a drag on Canadian exports and economic growth. The Bank also forecast weaker domestic investment and consumer spending due to tightening credit conditions and softening sentiment. The Bank repeated earlier statements that the domestic economy will remain robust: “Domestic demand is projected to remain strong, supported by firm commodity prices, high employment levels, and the effect of cumulative easing in monetary policy.” The Bank also marked down its inflation outlook, with inflation forecast to remain below two per cent until 2010. The continuation of low inflation will enable the Bank to continue cutting interest rates when it sets those rates again in June. “In line with this outlook, some further monetary stimulus will likely be required to achieve the inflation target over the medium term,” said the Bank. “The credit crunch and shaky U.S. economic growth will remain a downside risk to Canadian economic growth for some time,” said CREA Chief Economist Gregory Klump. “The Bank has all but said it will continue lowering interest rates to support economic growth, now that it sees inflation staying below its target rate of two per cent for years.” When the Bank decided to lower interest rates on April 22nd, the advertised conventional five-year conventional mortgage rate stood at 6.99 per cent. This is less than one half of a percentage point above where it stood a year ago. Competition among mortgage lenders remains stiff, but discounts off advertised mortgage interest rates have shrunk because the U.S. subprime mortgage meltdown and resulting global credit crunch have raised banks’ cost of funds. “National sales activity will stay strong and prices will continue rising. Housing affordability and Canadian housing demand will benefit from additional interest rate cuts,” Klump added. (CREA 22/04/08)
TORONTO REAL ESTATE BOARD ON TRACK FOR RECORD-BREAKING YEAR! September 4, 2008 - The Greater Toronto resale housing market closed out the summer at a steady pace. The Greater Toronto Area (GTA) average price increased 1 %, 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 8%. In the City of Toronto the average price declined 1 % to $377,990 from last August. Compared to the August 2006 figure of $344,419 however, the average price in the City of Toronto has increased 10 %. In the 905 Region the average price increased 2 % to $356,657 from last August. Compared to the August 2006 the average price in the 905 Region has increased 7 %. “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, Toronto Real Estate Board President. In the City of Toronto, there were 2,437 sales in August, a 25 % decline from a year ago. Compared to August 2006 though, this represents a 10 % decline. Sales increased 20 % between August 2006 and August 2007. The 905 Region’s 3,881 sales last month were 19 % off the August 2007 figure but declined 9 % from two years ago. “Despite August’s moderate sales, the 57,364 transactions that have occurred this year are within 14 % of 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.” With 6,318 transactions recorded last month, sales in the GTA declined 22 % compared to the record August 2007 figure of 8,059. Volumes were off just 9 % however, from the 6,976 sales recorded in August 2006. There are currently 25,076, properties available for sale in the GTA, which represents a 31 % 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: Condominium apartment and detached home transactions drove Rosedale (C09) to an 81 % increase in overall sales. Detached home transactions also contributed to an 11 % overall increase in sales in Aurora (N06). In Pickering (E13) transactions rose 6 % based primarily on strong semi-detached home sales. In Halton Hills (W27) strong attached/row house sales activity lead to a 3 % increase in transactions overall. GTA RESALE HOUSING STABLE IN JULY
August 6, 2008 - With 7,806 transactions recorded last month, the Greater Toronto Area (GTA) resale housing market continued at a moderate pace in July. Prices remained stable throughout the GTA in July. At $371,427 the average price increased slightly more than 1 % from $366,012 recorded in July 2007 and 9 % from the $342,034 figure of two years ago. In the City of Toronto the average price of $395,342 increased less than 1 % from the July 2007 price of $395,044 and 10 % from the July 2006 figure of $360,409. In the 905 Region the average price increased 3 % to $355,401 compared to the July 2007 figure of $345,967. This also represents an 8 % increase from the July 2006 average of $329,644. “Sales declined 12 % last month from the best-ever July 2007 record of 8,912 but increased 10 % from the 7,082 sales transacted in July 2006,” said Ms. O’Neill. “Comparing July 2007 with July 2006, sales increased by 26 %.” In the City of Toronto 3,132 sales were recorded, down 14 % from July 2007’s 3,640 transactions but up 10 % from the 2,852 sales recorded two years ago in 2006. Comparing July 2007 with July 2006, a period before the Land Transfer tax went into effect in Toronto, sales increased 28 %. In the 905 Region there were 4,674 transactions, down 11 % from July 2007’s 5,272 sales but up 10 % from the 4,230 sales recorded in July 2006. Comparing July 2007 with July 2006, sales increased 25 %. From a year-to-date perspective, the GTA’s 51,249 sales in 2008 have declined 14 % from the 59,339 reached at this time a year ago. Certain neighbourhoods throughout the GTA experienced increased sales activity in July. In Whitby (E15) sales increased 22 % from July 2007, based on strong sales in most housing types. Brampton East (W24) saw a 12 % increase, based primarily on semi-detached home sales. Strong detached home sales drove Uxbridge (N16) to a 23 % increase compared to a year ago. The Annex in Toronto (C02) experienced a 29 % sales increase due to strong detached home and condominium apartment sales. In addition to stable prices, the list to sale price ratio, at 98 %, remains unchanged from a year ago. “While homeowners continue to see healthy returns, it is taking slightly longer to achieve a sale; the average time on market has increased to 33 days compared to 31 days a year ago,” said Toronto Real Estate Board (TREB) President Maureen O’Neill. “This may be due to that fact that there is now more choice available to homebuyers; there are currently 26,543 active listings, a 28 % increase from a year ago.” Bank of Canada Holds Interest Rates Steady
The Bank of Canada held its benchmark overnight lending rate steady at 3 % at it’s setting on July 15th. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 3.25 per cent.
The Bank’s decision to hold interest rates steady aims to boost its inflation fighting credentials. Financial markets widely expected the Bank rate to be put on hold despite the lackluster outlook for Canadian economic growth. (July 16,2008) GTA RESALE HOUSING PRICES UP, SALES DOWN July 17, 2008 - Moderate activity and strong prices continued to characterize the Greater Toronto Area (GTA) resale housing market during the first half of July. “The average price in the GTA during the first half of July was $379,072, which is a 1 % nt increase from the $374,254 recorded in the first two weeks of July 2007 and a 9 % increase from $346,267 recorded during the same period in July 2006,” said Ms. O’Neill. In the 416 area, the average price was $419,199, up 1 % from the $414,321 recorded during first half of July 2007 and up 14 % from the $367,541 recorded during the same period two years ago. There were 1,369 sales, down 17 % from the 1,641 recorded during the first two weeks of July 2007 but up 8 % from the 1,264 sales recorded in the same period in July 2006. Before the Land Transfer Tax went into effect, sales increased 30 % in the first half of July 2007 compared to the same period in July 2006. At $353,257 the 905 region’s average price was up 2 % from $345,741 recorded in the first half of July 2007 and up 6 % from $332,733 recorded during the same period in July 2006. Sales in this region came in at 2,128 in the first half of the month, down 8 % from the 2,306 recorded during the same period last year but up 7 % from the 1,987 sales recorded during the first half of July 2006. Sales in the first two weeks of July 2007 saw a 16 % increase over mid-July 2006. “Continued strength in house prices throughout the GTA indicates that consumers continue to recognize the value of real estate as a long-term investment,” said Ms. O’Neill. Sales activity remained moderate in the first half of July, with 3,497 homes changing hands in the GTA. This is a decrease of 11 % from the 3,947 properties sold in the same period in 2007 but an 8 % increase from the 3,251 transactions recorded in the first two weeks of July 2006. Sales in the first two weeks of July 2007 saw a 21 % increase from mid-July 2006. Activity in certain areas increased in the first half of this month. Bowmanville (E17) saw a 12 % overall increase in sales due to an increase in detached home transactions. Brampton (W24) sales increased 18 %, driven primarily by a significant increase in semi-detached home transactions. The Annex (C02) experienced a 70 % increase in sales largely due to an increase in detached home transactions. “Although the number of available properties has increased 25 % compared to a year ago, from 21,777 to 27,317 listings, the number of days on market remains the same at 32, which is a positive sign,” said Ms. O’Neill. JUNE MARKET BALANCED July 4, 2008 - TREB Members reported 8,600 sales in June, TREB President Maureen O’Neill announced today. “Sales were down 18 % from the 2007 total of 10,451, which was the best performance ever for that month,” noted the president. “Nevertheless, the 8,600 figure is the fifth best June on record, and indicative of an active, healthy market.” Sales within the City of Toronto totaled 3,481, down 18 % from the 4,238 recorded in June 2007. Sales within the 905 suburbs, at 5,119, were also down 18 % from the 6,213 recorded during the same period last year. On the pricing front, June’s GTA average came in at $395,866. This was up 4 % over the $381,963 recorded during June of 2007. Prices increases were roughly equivalent in both the City of Toronto and the surrounding suburbs. Within Toronto, prices averaged $433,082, up 3 % over the $421,139 recorded in June of 2007. Within the 905 suburbs, the average price came in at $370,559, up 4 % over the $355,240 recorded during the same period last year. With summer coming, and a 22 % increase in inventory to nearly 27,000 this June over last, the market is slowly shifting towards balance after several years of favouring sellers. NEIGHBOURHOOD CORNER - Etobicoke: Etobicoke has seen 2,356 sales thus far in 2008, down 14 % from the 2,734 recorded during the first six months of last year. The average price was $406,197, up 2 % from the $399,525 recorded during the earlier time-frame. SALES MODERATE IN APRIL BUT PRICES UP May 5, 2008 - April statistics show that 8,762 houses sold in the Greater Toronto Area. “The market continues to experience a supply and demand situation and to-date it remains a sellers market," said TREB President Maureen O’Neill. The GTA market was down 7 % from last April’s record 9,452 transactions. However, it is showing signs for a healthy 2008 compared to the diminished activity during the first quarter of 2008. The sales pace however, did not take place evenly throughout the GTA. With 3,467 transactions in the City of Toronto, sales were down 10 % from a year ago. The 905 region was down 5 % from April 2007 sales, with 5,295 homes changing hands. Prices continued to appreciate last month, to a GTA average of $398,687, up 8 % from last April's $367,968. The average price in the City of Toronto was $446,781, up 6 % from April 2007. The 905 region’s average price of $367,196 increased 5 % from a year ago. “For more than a decade, real estate has served as the economy’s engine,” said Ms. O’Neill. “It’s encouraging to see that consumers are continuing to put their faith in real estate as an excellent longterm investment.” Breaking down the total, 3,398 sales were reported in TREB’s 28 West districts and averaged $372,575; 1,531 sales were reported in the 14 Central districts and averaged $539,133; 1,768 sales were reported in the 23 North districts and averaged $429,262; and 2,065 sales were reported in TREB’s 21 East districts and averaged $311,350. NEIGHBOURHOOD CORNER - Markham There have been 1,172 sales in Markham (N01, N10, N11) during the first four months of 2008, with an average price of $453,630. The price
is up 8 % from the $417,818 recorded during the same period in 2007. GTA RESALE HOUSING SALES EASE IN MARCH April 3, 2008 - 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 % compared to March 2007, 27 % in the City of Toronto and 18 % in the 905 suburbs. 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 6 % from a year ago, kept prices strong in March. Compared to last March, the average price in the GTA rose 4 % to $380,338 and 2 % in the City of Toronto to $404,361. As well, a few neighbourhoods experienced increased sales activity last month: Sales in Burlington (W25) were up 18 % compared to a year ago, with brisk activity in most housing categories. Thorncliffe Park (C11) saw a 6 % overall increase in transactions, based mainly on semi-detached sales. Bowmanville (E17) saw a 3 % increase in transactions compared to March 2007, driven primarily by strong detached home sales. Increased semi-detached transactions also drove sales in Georgina (N17) up 1 % nt compared to last March. Ms. O’Neill says March’s moderate performance isn’t disquieting given that Canadian economic fundamentals are holding steady. 40 % of international households that come to Canada settle in the GTA, giving us robust immigration levels; 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. 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. |
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