"Be miserable. Or motivate yourself. Whatever has to be done, it's always your choice." - Wayne Dyer
GTA REALTORS® MID-AUGUST RESALE HOUSING FIGURES, SALES DOWN, PRICE UP
August 17, 2010 ‐ Greater Toronto REALTORS® reported 2,732 sales through the Multiple Listing Service® (MLS®) during the first two weeks of August 2010. This represented a 29 % decrease compared to the 3,832 sales recorded during the same period in 2009. New listings, at 4,770 were down 8 % compared to the first two weeks of August 2009.
“Throughout the better part of the last year, the number of monthly sales was well above the expected long-term trend. Accordingly, it makes sense that the number of transactions has dipped over the past few months in comparison to last year’s record results,” said Toronto Real Estate Board President Bill Johnston.
The average price for August mid-month transactions was $412,934 – up 8 % compared to the average of $383,796 recorded during the first 14 days of August 2009.
SALES and NEW LISTINGS DOWN, AVERAGE PRICE UP IN JULY
August 5, 2010 - Greater Toronto REALTORS® reported 6,564 sales in July – a 34 % dip from the record 9,967 sales reported in July 2009. New listings, at 10,825, dropped to the lowest level for the month of July since 2002. "The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring," said Toronto Real Estate Board (TREB) President Bill Johnston.
Total sales through the first seven months of 2010 were up 12 % compared to the same period in 2009.
Notwithstanding the fact that price trends vary at the neighbourhood level in GTA, the average price for July transactions was $420,482, representing a 6 % increase over July 2009. Over the first seven months of 2010, the average selling price was up 12 % annually to $432,253.
"Market conditions promoting growth in the average selling price have remained in place. While July sales were down compared to last year, the number of new listings in the marketplace also fell. This means there was enough competition between buyers to exert upward pressure on price," said Jason Mercer, TREB's Senior Manager of Market Analysis.
Median Price - In July, the median price was $361,000, from the $339,900 recorded during July of 2009.
MARKET MORE BALANCED IN JUNE
July 6, 2010 - Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23 % decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up 1 % annually. Year-to-date sales through June were UP 23 % to 50,455 compared to the first six months of 2009.
"We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year," said Toronto Real Estate Board President Bill Johnston. "The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates."
The average price for June transactions was $435,034 – up 8 % compared to the average of $403,972 recorded for June 2009.
"With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The annual rate of average price growth in the second half of 2010 will be in the single digits." Median Price: In June, the median price was $367,750, from the $345,000 recorded during June of 2009.
MID MAY RESALE FIGURES - AVERAGE PRICE 12% UP COMPARED TO MID MAY 2009
TORONTO, May 19, 2010 - Greater Toronto REALTORS® reported 4,887 sales through the Multiple Listing Service® (MLS®) during the first two weeks of May. 
This represented a 7 % increase compared to the 4,561 sales recorded during the same period in 2009. New listings increased by 48 % annually to 10,059. “The average household looking to purchase a home continued to benefit from affordable opportunities in the first half of May,” said Toronto Real Estate Board President Tom Lebour. "The number of done deals will remain high for the remainder of 2010, but will dip from record levels.”
The average price for May mid-month transactions was $448,641 – up 12 % compared to the average of $399,811 recorded during the first 14 days of May 2009.
"The total number of homes currently listed in the GTA is now within a more normal range. As buyers benefit from more choice in the second half of 2010, average selling prices will grow at a slower pace," said Jason Mercer, TREB's Senior Manager of Market Analysis.
HST WILL NOT AFFECT RESALE HOMES
July 9, 2010 - As of July 1st, the new Harmonized Sales Tax (HST) will be in effect and Ontario consumers will be hard-pressed to avoid this so called “tax on everything”. While that less than flattering nick name for the HST may be pretty close to the truth, it’s not completely accurate, especially when it comes to real estate, where the HST applies differently depending on the type of real estate, whether it is resale housing, newly constructed housing, or business properties.
Anyone who has ever purchased a home or has considered purchasing a ho1me knows that budgeting for taxes is an important part of determining what they can afford. Whether it is the on-going cost of property taxes, or the upfront cost of land transfer taxes, the cost of taxes on housing can add up.
With that in mind, one of the most important things to know about the HST is that, fortunately, it will not increase the tax burden on the purchase price for homebuyers who purchase resale housing. That’s because resale housing, which was never subject to Provincial Sales Tax (PST) or the federal Goods and Services Tax, will continue to be exempt from both taxes once they are combined under the HST.
The same is not true for newly constructed homes, which will be hit with additional tax under the HST. Newly constructed housing has always been subject to the GST, meaning thousands of dollars of tax for home buyers choosing this option. Now, with the HST, new housing will also be subject to PST, meaning thousands of dollars in added costs for home buyers of new housing.
There is a silver lining for new housing: the provincial government provides a rebate of 75 per cent of the PST on the first $400,000 of a newly constructed home, or a maximum of $24,000. For example, someone purchasing a new home priced at $500,000 would face $40,000 in additional tax from the provincial portion of the HST, which would be reduced to $16,000 with the rebate. Obviously, the rebate softens the blow, but an extra $16,000 of tax for a newly constructed home is nothing to laugh at.
Fortunately, home buyers choosing to purchase a resale home don’t have to worry about paying HST on the price of their home. That’s money that they can keep in their pocket, or use to keep their mortgage costs down.
There is also encouraging news when it comes to real estate for businesses. Although the costs of purchasing or renting a commercial property are subject to HST, businesses are allowed to claim tax credits to offset these costs.
Even better, when purchasing a commercial property, the business can claim the tax credits immediately so that no upfront costs are incurred for the HST, and cash flow is not impacted.
It won’t be long before the HST is a reality in Ontario and taxes on a long list of goods and services will increase. Although it would be nice if HST didn’t apply to any real estate transactions, luckily, there is some encouraging news, especially for homebuyers of resale housing, who won’t see the purchase price of their home increase due to HST, and businesses buying or renting commercial properties, who will be able to offset their HST costs.
GTA REALTORS® report Mid-April Resale Market Figures - 25% INCREASE
TORONTO, April 16, 2010 – Greater Toronto REALTORS® reported 4,601 sales through the Multiple Listing Service® (MLS®) during the first two weeks of April. This represented a 25 % increase compared to the 3,681 sales recorded during the same period in 2009. New listings increased by 48 % 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 % compared to the average of $383,361 recorded during the first 14 days of April 2009.
RECORD FIRST SALES QUARTER
April 6, 2010 - Greater Toronto REALTORS® reported 10,430 sales through the Multiple Listing Service® (MLS®) in March, pushing total first quarter 2010 sales to 22,418 – the best result on record under the current Toronto Real Estate Board (TREB) boundaries. The average price for March transactions was $434,696. In March, the median price was $370,000, from the $317,500 recorded during March of 2009. The average price for the first quarter was $427,948.
“The strong rebound in the existing home market was one of the initial drivers of economic recovery,” said TREB President Tom Lebour. “While we don’t expect to see the same rates growth moving forward, GTA households will remain confident in ownership housing as a quality long-term investment, especially as economic recovery expands across all industries.” The annual rate of growth for new listings continued to accelerate in March. The number of new listings grew by 42 % compared to March of 2009.
“The average home price in the GTA will continue to grow this year, but the pace will slow as we move through the spring,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As growth in new listings starts to outstrip growth in sales, buyers will experience more choice, resulting in more sustainable single digit rates of average price growth.”
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.”
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.
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
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 recessionary 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, 2010
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
BUSY 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.
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 September, 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)
*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."
MLS® HOME SALES FORECAST REVISED
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)
MARKET REVIEW 2009 SO FAR: ACTIVITY, PRICES INCREASE AS SPRING APPROACHES
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)
NEW INFO RE. TORONTO LTT REBATES PROVIDED BY CITY
December 14, 2007 - The City of Toronto has indicated that it has been able to make arrangements that will allow purchasers who are eligible for a FULL rebate of the Toronto Land Transfer Tax (TLTT) to close their transactions without paying the TLTT upfront (and then receiving a rebate at a later date). The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect.
Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below.
PROVINCE EXPANDS PRIVINCIAL LAND TRANSFER TAX REBATE
Details
According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following:
Purchasers who have entered into an Agreement of Purchase and Sale for a property on or before December 31, 2007; and First-time home buyers where the total Toronto land transfer tax is $3,725 or less ($3,725 is the amount of TLTT payable on a home purchased for $400,000). First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City. Once all changes have been made to Teranet’s collection system, in the spring of 2008, these buyers will only have to pay the balance of the Toronto land transfer tax above $3,725.
More Information: Complete details of the Toronto land transfer tax are available here or by calling the City of Toronto at 416-338-0338.
December 13, 2007 - The provincial government has announced that it is expanding the PROVINCIAL land transfer tax rebate for first-time buyers to include re-sale housing, something which REALTORS® have lobbied for.
Details
First-time buyers of BOTH re-sale, and newly constructed homes, will be eligible for a rebate of the provincial land transfer tax of up to $2,000.
Effective for first-time buyers who enter into Agreements of Purchase and Sale AFTER December 13, 2007.
This change is being implemented by provincial legislation introduced on December 13, 2007. The Ministry of Finance has indicated that, until the legislation is passed, first-time buyers of re-sale properties eligible for the rebate can submit their applications for the refund and they will be processed once the legislation has passed. It is not known when the legislation will be passed. Buyers can consult with their lawyers if they have concerns.
The provincial land transfer tax rebate applies in all Ontario municipalities. In Toronto, the provincial rebate is in addition to City rebates of the Toronto Land Transfer Tax. See details of Toronto Land Transfer Tax.
More Information is available by calling:Ministry of Finance; Land Transfer Tax Section 905-433-6361 Or General Inquiry 1-800-263-7965
DETAILS OF NEW APPROVED TORONTO LAND TRANSFER TAX - Q & A
October 23, 2007 - Toronto City Council has approved a municipal land transfer tax that will be levied on top of the provincial land transfer tax. TREB and REALTORS® took a strong position to oppose this tax as unfair in principle and refused to compromise. As a direct result of this strong position, City Council was forced to make a number of amendments to the City’s original proposal, including rebates for first-time buyers, a reduced rate, and grandfathering for existing transactions. The City has not yet provided detailed information on administration or implementation issues. The following is based on currently available information. Some information from the City is available here.
What was approved by City Council? A second land transfer tax, on top of the provincial land transfer tax, at the following rates:
Residential: (An easy-to-use residential calculator is available at www.NoHomeBuyingTax.com):
0.5% of the amount of the purchase price up to and including $55,000, plus
1% of the amount of the purchase price between $55,000 and $400,000, plus
2% of the amount of the purchase price above $400,000
Commercial / Industrial / Etc.:
0.5% of the amount of the purchase price up to and including $55,000, plus
1% of the amount of the purchase price between $55,000 and $400,000, plus
1.5% of the amount between $400,000 and $40 million, plus
1% of the amount above $40 million
When does this take effect? February 1, 2008.
Are existing transactions grandfathered? Yes. Any transactions where the purchaser and vendor have entered into an Agreement of Purchase and Sale for the property prior to December 31, 2007 will be rebated the full amount of the Toronto land transfer tax, regardless of the closing date. (Note: Media reports that closings must occur by Feb. 1, 2008 are inaccurate.) Until that time, grandfathered transactions (Agreements signed on or before December 31, 2007), closing on or after February 1, 2008, will be charged the Toronto land transfer tax, which will then be rebated by the City of Toronto. Transactions closing before February 1, 2008 will not be charged the Toronto land transfer tax. The City has indicated that the necessary changes to Teranet’s system will be implemented in the “spring of 2008”. If you have concerns, please check with the lawyer or the Ciity. Once the City of Toronto provides clarification, more information I will provide more information.
What about Agreements of Purchase and Sale signed after December 31, 2007 with closing dates before February 1, 2008? Purchasers with a Purchase and Sale agreement signed after December 31, 2007 with a closing before February 1, 2008 will not be required to pay the Toronto Land Transfer tax.
Where does this apply? The Toronto land transfer tax only applies to transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto.
Are first time home buyers affected? First time home buyers of NEW and RE-SALE homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000). The City has indicated that the necessary changes to Teranet’s system will be implemented in the “spring of 2008”. Until that time, first-time buyer transactions will be charged the Toronto land transfer tax, which will then be rebated by the City of Toronto.
More detailed information will be provided once it is made available by the City. If you have questions, contact the City of Toronto at Access Toronto at 416-338-0338.
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.
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.