Average Selling Price Up in February in GTA

TORONTO - March 3, 2011

Greater Toronto REALTORS®  reported 6,266 transactions through the TorontoMLS® system in February 2011. This result was 14 per cent lower than the record sales reported in February 2010. While not representing a record, February 2011 sales were 50 per cent higher than the number reported in February 2009 during the recession and slightly higher than the average February sales over the previous ten years. "Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong,” said Toronto Real Estate Board (TREB) President Bill Johnston.The average selling price for


February 2011 transactions was $454,423, which was more than five per cent higher than the average selling price reported in February 2010. “Market conditions remain quite tight in the GTA. There is enough competition between home buyers to promote continued price growth,” said Jason Mercer, TREB’s Sen

Good Start to 2011 states Toronto Real Estate Board Market Watch

TORONTO, February 4, 2011 -- Greater Toronto REALTORS® reported 4,337 transactions through the orontoMLS® system in January 2011. This result was 13 per cent lower than the record result reported in January 2010.
“While off the record pace experienced a year ago, the GTA resale market has started the year on a solid footing. Home buyers in Toronto and surrounding areas continue to benefit from a diversity of housing types for sale at many different price points,” said TREB President Bill Johnston.
The average selling price for January 2011 sales was $427,037, representing an increase of over four per cent compared to the average of $409,058 reported in January 2010. “The average selling price is expected to grow at a moderate pace in 2011. Growth rates in the three to five per cent range will be sustainable from an affordability perspective,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

GTA REALTORS® Report Monthly Resale Housing Market Figures

TORONTO, October 5, 2010 -- Greater Toronto REALTORS® reported 6,310 sales
through the Multiple Listing Service® (MLS®) in September 2010.
This represented a 23 per cent decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up four per cent compared to the first three quarters of 2009.
“The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA,” said Toronto Real Estate Board President Bill Johnston.
The average price for September transactions was $427,329– up five per cent
compared to the average of $406,877 reported in September 2009. The average
selling price through the first nine months of the year was $429,657.
“Resale homes in the GTA remain affordable,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability,” continued Mercer. “The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lendingguidelines. This is why the average home selling price has continued to grow.”
For the entire article and the charts included by the Toronto Real Estate Board select the link above.

TREB Reports Drop in Sales and Inventory for July

Toronto Real Estate Board, Augsut 5, 2010 Release
Greater Toronto REALTORS® reported 6,564 sales in July – a 34 per cent 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 per cent 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 six per cent increase over July 2009. Over the first seven months of 2010, the average selling price was up 12 per cent 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.

What Bubble? Toronto Real Estate Prices Moderating

Contributed by Darryl Mitchell. Managing Broker, REMAX Professionals Inc. Brokerage.


“Lots of talk but no reality,” states RE/MAX Professionals Inc. Managing Broker Darryl Mitchell on the trends in Toronto real estate.


There has been a lot of discussion on the potential of a drop or “bubble” in the Toronto real estate market. Considering all of the negative potential of our global economy it stands to reason that some might bring up the topic of a dramatic fall in our home prices in Toronto or in Canada. The reality shown from many local sources is not holding this to be a true picture of what is happening in our market.


Yesterday the Toronto Real Estate Board June Market Watch stated what many Realtors in the trenches already knew, the market was trending to a balanced situation. This is a normal trend after two distinct market periods, the recession or 2008 and 2009, and the recovery of 2009 and 2010. Although the average price for a home in June 2010 had climbed 8% year over year from $403,972 to $435,034, the number of homes sold had dropped fully 23% from last year’s numbers. Obviously from this slower sales pace and higher sales price, something was happening, but what? This is not indicative of a bubble where prices and volume go together to a lower level.


(See July 5 Post GTA REALTORS® Report Monthly Resale Housing Figure..)


The Terranet Home Price Index is calculated by taking the same home that has been sold at two or more different times and comparing the price increase or decrease to other homes. It is a great tool to see what is actually happening in a changing market. The momentum of a market is calculated very effectively with this Index method. Although the index has not been yet released for May and June, the April index shows the strong momentum that is leading the market forward.


( See July 1, 2010 post Terranet Home Price Index Shows Monthly price rise of 0.8% in April)


In April for instance there was a .8% increase in home values month over month in the Greater Toronto Area. With the increased price of the Toronto average in May and June we can easily assume this index will either flatten of more likely go up. This is again the opposite of what we would expect if we had a bubble ready to burst.


The recession created a huge number of unfulfilled expectations from buyers who wanted to buy a home but felt the time was not good. The uncertainty in the economy simply made purchasing a home risky, or so they felt. This uncertainty, once removed, brought many of these buyers to the market in droves, filling this pent up demand and increasing used home sales dramatically. Thus prices increased, sales increased and the flurry of activity that resulted lead to a Seller’s Market place.


Why should this change now? Well there are a number of very important and other less important issues that are influencing our market today. These can be described as long term and short term and even seasonal influences.


The long term influences are the affordability of a home and the economic environment of the Toronto area. Affordability has come down for the new home owner but only slightly. In June the long awaited mortgage interest rate increase occurred. With the economy fully stimulated by our Federal and Provincial governments, it was felt a cooling in the real estate market was in order. Thus a small, .25% mortgage interest rate increase was affected by the Bank of Canada and the major lending institutions..


As well, affordability was impacted on July 1, 2010 with the infamous Harmonized Sales Tax (HST), Ontario’s new tax policy. Although this new tax is a re-taxation of the old Provincial Sales Tax (PST), it now covers may services and items that earlier were without tax. Good for businesses, this is a direct assault on the consumer. Real Estate is affected in two ways that did have a dampening effect on our market. First it added what has been estimated to be from .4% to 1.0% added cost to the real estate transaction for an existing home. For a newly built product this is estimated to be an increase of from 8% to as low as 2%. Talk about inflationary!


With these two issues alone consumers chose to buy used and new homes earlier just to keep their costs lower. This is a sample of an informed consumer making good choices with the best knowledge they had available. What was not apparent was that these choices would impact the home market so greatly on the short term. For instance the MLS sales reported for June 2010 by TREB were 23% less in June 2010 than in June 2009 (TREB June Statistics). The effect of pent up demand of 2010 plus the potential increased costs of interest rates and HST had consumers make choices to buy before June and July 2010.


The short term market influences can be categorized into normal seasonal influences and unusual inactive events that have come to the fore at just the same time as these affordability issues. These short term influences are described as seasonality of the market, G20 paralysis, and heat and Global soccer mania.


It seems a bit silly but the Toronto market place was hugely impacted by G20. People simply left town. Businesses went into paralysis simply to not be caught up in any international event so large and so impactive on the community. Property showings in some parts of Toronto simply stopped as access issues stopped the normal activities of the market place. I believe this will be a defining moment in our marketplace which will again build up a pent up demand.


Follow G20 with a heat wave the like of which has not been seen in over 3 years and you elongate the slow down. Add one of the world’s greatest sporting events, The World Cup of Soccer, and again we have another short term event of impact on the market. People who watch the World Cup are not buying homes; they are watching and talking soccer. Silly it seems, but very real. This was brought home to me when I called a Realtor who was on my list of favoured recruits to add to my office. When I asked what he was doing one morning, he proudly related he was watching his favourite national team. Not available to change to my company obviously and certainly not listing or selling homes!


Finally there is the seasonality of the marketplace. July and August traditionally are family move and family vacation times. People use these times to regroup and refresh. Often households with children are moved in the summer for convenience of school transfers. So the negotiations and sales happen earlier in the spring. Again this short term seasonal influence hit in June and July. Talk about the perfect storm!


So what about the short and far term from here forward. The Toronto real estate market is strong with great momentum. New product is being built daily. Existing used home inventory is readily available and of high quality. This is especially the case right now as sales have moderated downwards due to all of the above influences. The expectation is for home prices to moderate slightly lower as Sellers decide they should move their homes rather than wait any longer.


On the other hand, lower sales volume has already impacted mortgage demand. Just yesterday the Bank of Montreal lowered its mortgage rates. All the other major banks are expected to reciprocate today. So affordability will return to what was seen during the previous quarter.


If I had a crystal ball, and I do not, I would suggest the normal, more balanced market has returned to Toronto and area. This is not only sustainable, but good for both the buyer who wants sustained affordability and value protection, and the Seller who wants an optimum sales price, in a reasonable period of time. Employment is strong, people are in general happy and life is generally back to normal. Although international events can impact our real estate market, right now it is liquid, priced affordably and positive. An investment in real estate in Toronto and area is still one of the best opportunities available for the average consumer.


So if you want a bubble, at least in the short term, purchase some bubble gum. Enjoy you summer, because the fall will be very busy and profitable!

GTA REALTORS® Report Monthly Resale Housing Figures

Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.
“We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year,” said Toronto Real Estate Board President Bill Johnston. “The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates.”The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.
“With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The annual rate of average price growth in the second half of 2010 will be in the single digits.”

Toronto Real Estate Board President's March Message

Tom Lebour, President Toronto Real Estate Board, March 15, 2010 -- Moving our clocks forward and an upcoming meeting in Ottawa are two perennial signs that spring is upon us, and the important issues being discussed at the Canadian Real Estate Association’s Annual General Meeting March 22nd are sure to make for an interesting start to the season.

You’re probably aware that last month the Commissioner of Competition filed a Notice of Application against CREA seeking to strike down certain CREA rules. One week prior to the Notice of Application, CREA advised the Commissioner of Competition and the Competition Bureau of its intention to move forward with rule changes to address the issues raised by the Bureau. Delegates from real estate boards and associations throughout the country, including Members of TREB’s Board of Directors, will vote on the proposed rule changes March 22nd.

If you’re interested in learning more about the proposed rule changes, a video message delivered by CREA’s external Competition Law counsel Katherine Kay, is posted on TorontoMLS. Further information on this issue is available under a tab called ‘Competition Bureau Information Zone’ on REALTORLink, which can be accessed directly from the TorontoMLS homepage. It includes CREA Dispatch 2010-03, which also outlines the proposed rule changes, on pages four and five of the document. Stay tuned to REALTORlink for an update as to the outcome of next week’s discussions.

Revisions to CREA’s television advertising campaign are also underway. Scheduled to be introduced April 5th, the campaign has been re-geared to reflect a more serious tone, focusing on the professional services that REALTORS® offer. TREB’s Board of Directors will soon be considering the development of a new advertising campaign as well, potentially focused on Buyer representation.

You may recall that last September I told you about the formation of a Buyers’ Services Task Force. The work of this group is progressing well, with a number of recommendations soon to be considered. This year’s new focus on Buyers’ Services extends beyond the Task Force as well.

Recently for example, a TREB-designed interface to facilitate Internet Data Exchange (IDX) was introduced. To date, more than 100 brokerages have taken advantage of this opportunity to advertise their listings on each other’s websites through reciprocal agreements.

The Connect project, which allows you to search and view the active listings and recent sales history of the REALTORS® Association of Hamilton-Burlington, the London and St. Thomas Association of REALTORS® and the Ottawa Real Estate Board, is poised to expand. Six other Boards have paid initiation fees to participate, and are in the process of developing templates to allow them to connect. It’s also important to note that five additional Real Estate Boards and Associations are included through the four founding groups. The Brampton Real Estate Board, the Durham Region Association of REALTORS®, The Mississauga Real Estate Board and Orangeville and District Real Estate Board are included through TREB and the Renfrew County Real Estate Board is included through the Ottawa Real Estate Board.

This initiative is an excellent example of the spirit of cooperation on which our profession was founded. There is though, much more that we can achieve by working together. Government Relations efforts for example, are well underway to coincide with this fall’s municipal election and I am happy to report that a Mayoral Candidate Debate will take place at this year’s REALTOR® Quest conference, May 5th and 6th at the Toronto Congress Centre. This debate is among the many highlights of this year’s conference: another expansive tradeshow, a wide selection of Continuing Education seminars and a full slate of entertainment attractions are also planned. Be sure to stay tuned for further details.

In the months leading up to the municipal election I also encourage you to help shape the future of the Greater Toronto Area by sharing your views on a daily basis through a special Op Ed section of the Toronto Star. Given that few other professions are as familiar with GTA communities, it’s important to ensure that the REALTOR® perspective on our city’s future is heard. To take advantage of this opportunity please visit http://www.thestar.com/opinion/editorials/article/775190--a-civic-call-to-action.

I also look forward to receiving your comments, questions and suggestions in the coming weeks as activity in our profession becomes even more dynamic. Please feel free to write to me anytime at trebpres@trebnet.com.

Tom Lebour
President

GTA REALTORS® REPORTING MARCH MID-MONTH HOUSING STATISTICS

TORONTO, MARCH 17, 2010 - Greater Toronto REALTORS® reported 4,353 sales through the Multiple Listing Service® (MLS®) during the first two weeks of March. This represented a 70 per cent increase compared to the 2,562 sales recorded during the same period in 2009 when resale transactions had dipped markedly due to the recession. The mid-month sales total was also 16 per cent higher than the previous March midmonth high reached in 2006. “The spring-like weather in the first half of March brought the first green sprouts of the recuring spring market. Every year, monthly sales climb steadily through May,” said Toronto Real Estate Board President Tom Lebour. "People are buying homes because they are confident in the current economic recovery and mortgage payments on the average priced home remain affordable."
The average price for March mid-month transactions was $440,153 – a 20 per cent increase over 2009. New listings within the Toronto Real Estate Board boundaries were up 34 per cent to 8,540.
"Look for double-digit annual price increases to cease later in 2010, as new listings rebound from the low levels experienced in 2009," said Jason Mercer, TREB's Senior Manager of Market Analysis. "Increased listings will give buyers more choice, resulting in less upward pressure on home prices.”


Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 29,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.

Chris Hillier Newest RE/MAX Professional

CHRIS HILLIER
Interested in the creation of current multimedia trends, Chris spent his post secondary years studying a variety of technical disciplines from television and graphic design, to advertising and photography. Each applying an emphasis in communication. Chris has a heightened understanding of how to make the most of current marketing and networking trends. His goal is to become successful in the real estate market with the use of his multimedia talents and current networking tools.
Chris will be joining the Simandl Group. Dave and Monique are very excited to have Chris join their team and bring their real estate business to the next level.
Please welcome Chris, he can be reached by email at info@chrishillier.ca.

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

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 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.
"

RE/MAX and You

Come join me at RE/MAX and You on February 23rd. Check it out at http://ping.fm/GwcUw

Search for Neighbourhoods, Schools and Other Amenities

Toronto Real Estate Board has an excellent tool for searching neighbourhood, schools and other amenities. The is a great tool for the public to check out Toronto and area. Check it out! http://ping.fm/kyLmY

Tom Lebour, Toronto Real Estate Board President Reports a Strong Start to 2010

Toronto Real Estate Board President Tom LeBour in his year end review for the Toronto Star reported that he expects real estate listing numbers to rise, and prices to grow moderately Chekc out this article in the following link. http://ping.fm/uoLQE

Economic activity in Toronto Ready to Improve States Toronto Real Estate Board

Renewed economic growth suggests that commercial real estate situation to
improve in 2010 states Toronto Real Estate Board http://ping.fm/dZD1k