Teranet House Price Index
Canadian home prices in December were up 5.2% from a year earlier, double the 12-month advance recorded in November, according to the Teranet-National Bank National Composite House Price Index™. December was the third consecutive month in which prices were up from a year earlier, after 10 consecutive months of 12-month deflation. The turnaround is due to eight straight monthly increases in the countrywide index. December's robust 1.2% monthly gain pushed the composite index above the pre-recession peak, that is, to a new record.
Check out the details on the following link:
http://www.housepriceindex.ca/
Wednesday, February 24, 2010
U.S. new-home sales fall to record-low level - MARKETWATCH
By Rex Nutting WASHINGTON (MarketWatch) - Sales of new U.S. homes plunged 11.2% in January to a seasonally adjusted annual rate of 309,000, the lowest rate on record dating back to 1963, the Commerce Department estimated Wednesday. Economists surveyed by MarketWatch forecast sales to rise slightly to 355,000, with buyers taking advantage of a new federal tax credit. Sales in December were revised higher to 348,000 from 342,000 previously reported. Sales are down 6.1% compared with January 2009's 329,000, which was the previous record-low rate. The number of homes for sale rose 0.4% to 234,000 in January. At the January sales pace, it would take 9.1 months to sell that inventory.
http://www.marketwatch.com/story/us-new-home-sales-fall-to-record-low-level-2010-02-24-105210?siteid=bnbh
http://www.marketwatch.com/story/us-new-home-sales-fall-to-record-low-level-2010-02-24-105210?siteid=bnbh
Low inventory levels set stage for heated Spring market in most major Canadian centres, says RE/MAX
Active listings down in 81 per cent of markets in January
Mississauga, ON (February 24, 2010) - Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.
The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.
"There have never been so many motivating factors in play at once," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "We're in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."
Mississauga, ON (February 24, 2010) - Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.
The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.
"There have never been so many motivating factors in play at once," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "We're in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."
Saturday, February 20, 2010
Dupuis: Enhance Rebates to Make Housing More Affordable
February 13, 2010
Stephen Dupuis
There have been mixed signals coming from federal Finance Minister Jim Flaherty as he prepares for the next budget.
At times over the last few months, Flaherty has said the budget will not be stimulative; but after his meetings at the World Economic Forum in Davos, Switzerland, that seemed to change.
At one point, Flaherty also mused about cooling down the housing market by increasing the minimum down payment and/or reducing the maximum mortgage amortization period should a housing bubble begin to form. More recently, Flaherty has said he has no plans to artificially slow down the market.
Meanwhile, the extension of the Home Renovation Tax Credit has been on and off again depending on the direction for the budget itself.
I have three suggestions for Flaherty, which could go a long way toward enhancing housing affordability and creating jobs.
First, while I doubt the finance minister would go out of his way to actively kill jobs, I'll say once more that he should not, under any circumstances, mess with a good thing by trying to slow down the housing market.
http://www.yourhome.ca/homes/columnsblogs/article/763602--dupuis-enhance-rebates-to-make-housing-more-affordable
Stephen Dupuis
There have been mixed signals coming from federal Finance Minister Jim Flaherty as he prepares for the next budget.
At times over the last few months, Flaherty has said the budget will not be stimulative; but after his meetings at the World Economic Forum in Davos, Switzerland, that seemed to change.
At one point, Flaherty also mused about cooling down the housing market by increasing the minimum down payment and/or reducing the maximum mortgage amortization period should a housing bubble begin to form. More recently, Flaherty has said he has no plans to artificially slow down the market.
Meanwhile, the extension of the Home Renovation Tax Credit has been on and off again depending on the direction for the budget itself.
I have three suggestions for Flaherty, which could go a long way toward enhancing housing affordability and creating jobs.
First, while I doubt the finance minister would go out of his way to actively kill jobs, I'll say once more that he should not, under any circumstances, mess with a good thing by trying to slow down the housing market.
http://www.yourhome.ca/homes/columnsblogs/article/763602--dupuis-enhance-rebates-to-make-housing-more-affordable
Federal Government Changes Mortgage Rules - Toronto Real Estate Board Release
February 16, 2010 -- The federal government has announced changes to the rules for government-backed insured mortgages (less than 20 percent down payment).
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 on the follwoing link.
http://www.fin.gc.ca/n10/data/10-011_1-eng.asp
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 on the follwoing link.
http://www.fin.gc.ca/n10/data/10-011_1-eng.asp
Toronto Star Canadian Home Sales Drop in January
February 17, 2010
Tony Wong
BUSINESS REPORTER
Home sales across Canada dipped by 2.8 per cent in January from the near record levels reported in December, suggesting the market may be cooling.
There were 46,394 existing homes sales last month, compared to 48,144 in the prior month, according to figures released by the Canadian Real Estate Association today. All figures are seasonally adjusted.
“January results suggest the national resale market may be past the recent peak,” said CREA chief economist Gregory Klump. “One car doesn’t make a parade, so a few more months of results showing a cooling trend will be required before talk of a Canadian housing bubble begins to fade.”
Actual (not seasonally adjusted) sales activity in January was up 58 per cent ago from year ago levels. Last January was the lowest level of sales in more than a decade.
Despite the dip in sales, prices continued to rise significantly. Average residential price was up by 19.6 per cent to $353,129.
New listings also rose slightly by three tenths of one percent on a month over month basis in January to reach the highest level since November of 2008.
Check out Tony Wong's Star Article at eh following link:
"http://www.yourhome.ca/homes/newsfeatures/industrynews/article/766855--canadian-home-sales-drop-in-january"
Tony Wong
BUSINESS REPORTER
Home sales across Canada dipped by 2.8 per cent in January from the near record levels reported in December, suggesting the market may be cooling.
There were 46,394 existing homes sales last month, compared to 48,144 in the prior month, according to figures released by the Canadian Real Estate Association today. All figures are seasonally adjusted.
“January results suggest the national resale market may be past the recent peak,” said CREA chief economist Gregory Klump. “One car doesn’t make a parade, so a few more months of results showing a cooling trend will be required before talk of a Canadian housing bubble begins to fade.”
Actual (not seasonally adjusted) sales activity in January was up 58 per cent ago from year ago levels. Last January was the lowest level of sales in more than a decade.
Despite the dip in sales, prices continued to rise significantly. Average residential price was up by 19.6 per cent to $353,129.
New listings also rose slightly by three tenths of one percent on a month over month basis in January to reach the highest level since November of 2008.
Check out Tony Wong's Star Article at eh following link:
"http://www.yourhome.ca/homes/newsfeatures/industrynews/article/766855--canadian-home-sales-drop-in-january"
Top Producer: Still the Choice of Realtors for Data Management
Top Producer has long been the most cost effective, professional program to use in controlling your data base of clients. Management of a large data base is simplified with this excellent tool. Now that it is web based, you will not lose your contact information should your computer crash. With this change you can check and change your data from any computer. The templated letters, emails, feature sheets and more are excellent and will set you apart as a professional Realtor. Check out their web site for the newest additions to their program.
http://www.topproducer.com/
http://www.topproducer.com/
Toronto Real Estate Board Early February Results Are Strong
February 18, 2010 -- Greater Toronto REALTORS reported 3,555 sales through the Multiple Listing Service during the first two weeks of February. http://www.torontorealestateboard.com/consumer_info/market_news/news2010/pdf/nr_mid_month_0210.pdf
Toronto Real Estate Board Commercial Members report strong January
February 18, 2010 -- Last month, TREB Commercial Members reported 660,815 square feet of leased space. This result was a substantial increase compared to the 336,029 leased square feet recorded in January of 2009, when the rate of economic decline was greatest during the recent recession.http://www.torontorealestateboard.com/consumer_info/market_news/news2010/pdf/nr_comm_watch_0110.pdf
Tuesday, February 16, 2010
Government of Canada Announces Mortgage Approval Changes
Flaherty announces mortgage approval changes that should strengthen the marketplace. Changes include tighter controls on investors in real estate, higher requirements on qualification for mortgages and more. This is geared to maintain the high confidence that Canadian consumers have in the value of their largest investment, their home. Read this on the following link. - http://ping.fm/WmfDO
Government of Canada Announces Mortgage Approval Changes
The Honorable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians.
"Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."
The Government will therefore adjust the rules for government-backed insured mortgages as follows:
• Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
• Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
• Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.
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.
MORTGAGE INSURANCE
Mortgage insurance (which is sometimes called mortgage default insurance) is a credit risk management tool that protects lenders from losses on mortgage loans. If a borrower defaults on a mortgage, and the proceeds from the foreclosure of the property are insufficient to cover the resulting loss, the lender submits a claim to the mortgage insurer to recover its losses.
The law requires federally regulated lenders to obtain mortgage insurance on loans in which the homebuyer has made a down payment of less than 20 per cent of the purchase price (also called high loan-to-value ratio loans). The homebuyer pays the premium for this insurance, which protects the lender if the homebuyer defaults.
The Government ultimately backs most insured mortgages in Canada. It is responsible for the obligations of Canada Mortgage and Housing Corporation (CMHC) as it is an agent Crown corporation. In order for private mortgage insurers to compete with CMHC, the Government backs private mortgage insurers' obligations to lenders, subject to a deductible equal to 10 per cent of the original principal amount of the loan.
In October 2008, the Government adjusted its minimum standards for government-backed, high-ratio mortgages, including:
• Fixing the maximum amortization period for new government-backed mortgages to 35 years.
• Requiring a minimum down payment of five per cent for new government-backed mortgages.
• Establishing a consistent minimum credit score requirement.
• Requiring the lender to make a reasonable effort to verify that the borrower can afford the loan payment.
• Introducing new loan documentation standards to ensure that there is evidence of reasonableness of property value and of the borrower's sources and level of income.
MEASURES ANNOUNCED TODAY
Today, the Government announced three changes to the standards governing government-backed mortgages.
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.
Lender and mortgage insurers look at two key ratios when assessing the ability of a borrower to make payments on a mortgage loan:
• Gross Debt Service (GDS) ratio—the ratio of the carrying costs of the home, including the mortgage payment, taxes and heating costs, to the borrower's income.
• Total Debt Service (TDS) ratio—the ratio of the carrying costs of the home and all other debt payments to the borrower's total income.
Currently, the interest rate used to determine the mortgage payment for these calculations is either the rate fixed for the term of the mortgage or, in the case of a variable-rate mortgage and mortgages with terms of less than three years, the greater of the contract rate and the prevailing three-year fixed rate.
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.
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.
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 per cent 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
"Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."
The Government will therefore adjust the rules for government-backed insured mortgages as follows:
• Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
• Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
• Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.
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.
MORTGAGE INSURANCE
Mortgage insurance (which is sometimes called mortgage default insurance) is a credit risk management tool that protects lenders from losses on mortgage loans. If a borrower defaults on a mortgage, and the proceeds from the foreclosure of the property are insufficient to cover the resulting loss, the lender submits a claim to the mortgage insurer to recover its losses.
The law requires federally regulated lenders to obtain mortgage insurance on loans in which the homebuyer has made a down payment of less than 20 per cent of the purchase price (also called high loan-to-value ratio loans). The homebuyer pays the premium for this insurance, which protects the lender if the homebuyer defaults.
The Government ultimately backs most insured mortgages in Canada. It is responsible for the obligations of Canada Mortgage and Housing Corporation (CMHC) as it is an agent Crown corporation. In order for private mortgage insurers to compete with CMHC, the Government backs private mortgage insurers' obligations to lenders, subject to a deductible equal to 10 per cent of the original principal amount of the loan.
In October 2008, the Government adjusted its minimum standards for government-backed, high-ratio mortgages, including:
• Fixing the maximum amortization period for new government-backed mortgages to 35 years.
• Requiring a minimum down payment of five per cent for new government-backed mortgages.
• Establishing a consistent minimum credit score requirement.
• Requiring the lender to make a reasonable effort to verify that the borrower can afford the loan payment.
• Introducing new loan documentation standards to ensure that there is evidence of reasonableness of property value and of the borrower's sources and level of income.
MEASURES ANNOUNCED TODAY
Today, the Government announced three changes to the standards governing government-backed mortgages.
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.
Lender and mortgage insurers look at two key ratios when assessing the ability of a borrower to make payments on a mortgage loan:
• Gross Debt Service (GDS) ratio—the ratio of the carrying costs of the home, including the mortgage payment, taxes and heating costs, to the borrower's income.
• Total Debt Service (TDS) ratio—the ratio of the carrying costs of the home and all other debt payments to the borrower's total income.
Currently, the interest rate used to determine the mortgage payment for these calculations is either the rate fixed for the term of the mortgage or, in the case of a variable-rate mortgage and mortgages with terms of less than three years, the greater of the contract rate and the prevailing three-year fixed rate.
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.
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.
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 per cent 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
Monday, February 15, 2010
Toronto Real Estate Board President's Toronto Star Column
President's Toronto Star Column: "February 12, 2010 -- No matter where your travels take you throughout the Greater Toronto Area these days, you’ll find that real estate is on many people’s minds.
From office lobbies to restaurants to subway trains, snippets of conversations about the market can be heard. This is a reflection of how profoundly our city’s real estate market affects all of us. Indeed, the quick rebound in the real estate market (GTA and Canadian) contributed greatly to the recovery experienced in the economy to date. The Canadian Real Estate Association estimates that each resale home transaction in Canada results in over $46,000 in additional spending across many different sectors of the economy. Obviously, this spending also helps with keeping people employed and creating new jobs as we continue to recover from the recession.In January, 4,986 homes changed hands throughout the Greater Toronto Area. This figure far exceeds last January’s 2,670 sales, which took place in the depths of our short-lived recession. Most significantly, it is comparable to January 2008’s 5,075 transactions and the 5,173 sales that took place in January 2007, the latter of which was the strongest year on record. Breaking down the numbers, there were 1,973 sales in the 416 Area and 3,013 transactions in the 905 Region last month.
Condominium apartments comprised 47 per cent of all sales in the 416 and nearly 13 per cent of all 905 transactions last month. By contrast, at this time a year ago condominiums comprised 43 per cent of 416 sales and 11 per cent of 905 transactions, despite the fact that in last year’s struggling economy, a condominium purchase may have been a more affordable option for many homebuyers. Condominium living is becoming an increasingly popular option for a broader array of households in the GTA.
With respect to prices, there is more encouraging news. Currently, the average price of a home in the GTA is $409,058, which represents a 19 per cent increase over the January 2009 average price of $343,632. The increase was even more significant in the 905 Region, where last January’s average price of $328,935 rose more than 20 per cent to $396,556 last month. In the 416 Area the average price rose 17 per cent from $364,416 a year ago to $428,151 in January.
There are currently 12,052 resale homes available for sale throughout the GTA as compared to 20,450 a year ago. As we move toward the spring market though, we can expect more listings as homeowners react favourably to recent months’ activity. The average home price will continue to grow in the GTA, but at a more moderate pace.
To find out more about market conditions in your specific neighbourhood, talk to a Greater Toronto REALTOR®. They can advise you on recent sales in the area so that you can make informed decisions when planning your next move. Be sure to visit www.TorontoRealEstateBoard as well, where you will find GTA listings, plain language explanations of common real estate forms, information on government programs and much more.
Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.
"
From office lobbies to restaurants to subway trains, snippets of conversations about the market can be heard. This is a reflection of how profoundly our city’s real estate market affects all of us. Indeed, the quick rebound in the real estate market (GTA and Canadian) contributed greatly to the recovery experienced in the economy to date. The Canadian Real Estate Association estimates that each resale home transaction in Canada results in over $46,000 in additional spending across many different sectors of the economy. Obviously, this spending also helps with keeping people employed and creating new jobs as we continue to recover from the recession.In January, 4,986 homes changed hands throughout the Greater Toronto Area. This figure far exceeds last January’s 2,670 sales, which took place in the depths of our short-lived recession. Most significantly, it is comparable to January 2008’s 5,075 transactions and the 5,173 sales that took place in January 2007, the latter of which was the strongest year on record. Breaking down the numbers, there were 1,973 sales in the 416 Area and 3,013 transactions in the 905 Region last month.
Condominium apartments comprised 47 per cent of all sales in the 416 and nearly 13 per cent of all 905 transactions last month. By contrast, at this time a year ago condominiums comprised 43 per cent of 416 sales and 11 per cent of 905 transactions, despite the fact that in last year’s struggling economy, a condominium purchase may have been a more affordable option for many homebuyers. Condominium living is becoming an increasingly popular option for a broader array of households in the GTA.
With respect to prices, there is more encouraging news. Currently, the average price of a home in the GTA is $409,058, which represents a 19 per cent increase over the January 2009 average price of $343,632. The increase was even more significant in the 905 Region, where last January’s average price of $328,935 rose more than 20 per cent to $396,556 last month. In the 416 Area the average price rose 17 per cent from $364,416 a year ago to $428,151 in January.
There are currently 12,052 resale homes available for sale throughout the GTA as compared to 20,450 a year ago. As we move toward the spring market though, we can expect more listings as homeowners react favourably to recent months’ activity. The average home price will continue to grow in the GTA, but at a more moderate pace.
To find out more about market conditions in your specific neighbourhood, talk to a Greater Toronto REALTOR®. They can advise you on recent sales in the area so that you can make informed decisions when planning your next move. Be sure to visit www.TorontoRealEstateBoard as well, where you will find GTA listings, plain language explanations of common real estate forms, information on government programs and much more.
Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.
"
Sunday, February 14, 2010
Effective Negotiating for Real Estate Professionals
6 Continuing Eduction Credits
When : February 24th, 2010
Time : 9:30 AM - 5:00 PM
Where : RE/MAX Regional office,
7101 Syntex Dr. Mississauga ON L5N 6H5 (Map & Directions)
Investment : $125.00 + GST (Lunch includedAbout the Course: Effective Negotiating for Real Estate Professionals will help you gain a strong competitive advantage in securing the agreements you want by negotiating in a more powerful and productive way. You’ll learn the difference between positional bargaining and value negotiating and explore the benefits, tactics and risks involved. Discover how to secure the best outcomes for your clients. Learn to identify problems and solutions in negotiating. Move beyond the barriers of impasse to mutually beneficial agreements. You’ll learn how to directly apply these principles not only to your real estate business but also to everyday negotiations.
Instructor: Adorna Carroll
Adorna is an active REALTOR® who specializes in buyer representation. A top speaker and facilitator who receives RAVE reviews every ABR session she delivers (most recently in Calgary and Edmonton).
Call Darryl Mitchell or Christine Mitchell to Register
When : February 24th, 2010
Time : 9:30 AM - 5:00 PM
Where : RE/MAX Regional office,
7101 Syntex Dr. Mississauga ON L5N 6H5 (Map & Directions)
Investment : $125.00 + GST (Lunch includedAbout the Course: Effective Negotiating for Real Estate Professionals will help you gain a strong competitive advantage in securing the agreements you want by negotiating in a more powerful and productive way. You’ll learn the difference between positional bargaining and value negotiating and explore the benefits, tactics and risks involved. Discover how to secure the best outcomes for your clients. Learn to identify problems and solutions in negotiating. Move beyond the barriers of impasse to mutually beneficial agreements. You’ll learn how to directly apply these principles not only to your real estate business but also to everyday negotiations.
Instructor: Adorna Carroll
Adorna is an active REALTOR® who specializes in buyer representation. A top speaker and facilitator who receives RAVE reviews every ABR session she delivers (most recently in Calgary and Edmonton).
Call Darryl Mitchell or Christine Mitchell to Register
RE/MAX and You
Come join me at RE/MAX and You on February 23rd. Check it out at http://ping.fm/GwcUw
Saturday, February 13, 2010
AMJ Campbell Celebrates Olympics at Hockey Hall of Fame
Thank you AMJ Campbell for inviting Christine and I to the Hockey Hall of Fame to watch Olympic Opening. Thanks, movers of Olympians!
Paul Henderson at Hockley Hall of Fame for AMJ Campbell
What a night for Canada at Olympic Opening. Spent the time with Paul Henderson and other Olympians at the Hockey Hall of Fame.
Thursday, February 11, 2010
Competition Bureau Takes Unusual Stand Against organized Real Estate
MLS to respond to Competition Bureau demand for change: http://ping.fm/gkakm
This stand makes one wonder if a bad business plan is still a bad business plan? Should unprofitable business plans be protected? This is not the typical Canadian business story of business efficiency winning the day.
This stand makes one wonder if a bad business plan is still a bad business plan? Should unprofitable business plans be protected? This is not the typical Canadian business story of business efficiency winning the day.
RE/MAX Ontario-Atlantic Broker Meeting
RE/MAX Ontario-Atlantic Broker Meeting Today will be a first for me. I look forward to meeting new partners!
Thursday, February 4, 2010
Toronto Real Estate Board January Results Are Strong
February 3, 2010 - According to the Toronto Real Estate Board January 2010 sales have been strong. Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough. See details.
http://www.torontorealestateboard.com/consumer_info/market_news/mw2010/pdf/mw1001.pdf
http://www.torontorealestateboard.com/consumer_info/market_news/mw2010/pdf/mw1001.pdf
RE/MAX Ontario-Atlantic Makes 2010 Predictions
RE/MAX Ontario-Atlantic predicts economic recovery in residential real estate well under way. http://ping.fm/sBbWs
RE/MAX Ontario-Atlantic Kick Start
RE/MAX Kick Start Toronto was a blast! Check it out! http://ping.fm/4nWs8
Monday, February 1, 2010
Urbanation States New Condo Market on Rebound
Urbanation, the authoritative source on the Toronto condominium market reports a strong new condo market in Toronto.The amazing turnaround in the new condominium market in the second half of the year culminated in 6,295 new sales in Q4-2009. The 14,792 sales in 2009 were a 2% increase over 2008! Urbanation is expecting as many as 20,000 new units to come to market in 2010, and is forecasting 19,000 sales.
The 4,215 resale transactions in Q4-2009 was the highest fourth quarter total on record, and double the Q4-2008 resale volume. The 16,147 resales in 2009 were a annual high for the Toronto CMA. With a record high sales-to-listings ratio of 69% in Q4-2009, the market should not have any trouble absorbing the close to 19,000 new units scheduled to occupy in 2010.
Urbanation publishes their “Condominium Market Survey” quarterly. You can check out Urbanation at their web site: http://www.urbanation.ca/
The 4,215 resale transactions in Q4-2009 was the highest fourth quarter total on record, and double the Q4-2008 resale volume. The 16,147 resales in 2009 were a annual high for the Toronto CMA. With a record high sales-to-listings ratio of 69% in Q4-2009, the market should not have any trouble absorbing the close to 19,000 new units scheduled to occupy in 2010.
Urbanation publishes their “Condominium Market Survey” quarterly. You can check out Urbanation at their web site: http://www.urbanation.ca/
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