Tag Archives: Toronto Real Estate

Toronto Real Estate Board Update: GTA REALTORS® Report 2,670 Resale Housing Transactions in January

TORONTO, February 4, 2009

– According to TREB president Maureen O’Neill, there are opportunities at any point in the housing market cycle.

“Moderated housing prices combined with low interest rates could present excellent long-term investment and homeownership opportunities in the GTA housing market,” noted TREB President Maureen O’Neill. ”REALTORS® can help potential home buyers and investors identify value in today’s market.

Greater Toronto REALTORS® reported 2,670 sales in January compared to 5,075 in the first month of 2008.

“Demand for existing homes in the Greater Toronto Area moderated as the housing market followed the broader economic slowdown in Canada,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

The average home price in the Greater Toronto Area was $343,632, compared to $374,449 last January. The median price was $303,000 compared to $319,000 last year.

“Current selling prices are a reflection of more choice in the existing home marketplace,” said Mercer. “At the same time, low mortgage rates have helped keep ownership housing an affordable option. Given that we are not facing an early-1990s-style affordability crisis, the rebound in the housing market will likely be quick once economic recovery takes hold,” added Mercer.

Source:  TREB (Toronto Real Estate Board)

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Toronto Home Buyers and Owners To Get a Boost in the Budget

Homebuyers’ Plan
The federal budget proposes to increase the withdrawal limit for first-time homebuyers using the Homebuyers Plan from $20,000 to $25,000 (per individual).

Under this program, first-time homebuyers are allowed to withdraw funds from their RRSP, tax-free, to put towards the down payment on a home. Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal.

Since 1992, an estimated 2 million Canadians have used the Home Buyers’ Plan to purchase approximately 900,000 homes, making this program a huge success. Unfortunately, as time has passed, the usefulness of this program eroded because withdrawal limits were not adjusted. For this reason, REALTORS® lobbied the federal government to increase the Home Buyers’ Plan withdrawal limit to $25,000.

 First-Time Home Buyers’ Tax Credit

The Budget proposes a 15 per cent credit that would be applied to a $5,000 amount, and would provide up to $750 in tax relief to reduce costs associated with first home purchases.

To assist first-time home buyers with the costs related to the purchase of a home such as legal fees, land transfer taxes, etc.

 Home Renovation Tax Credit

The Budget proposes a 15 per cent credit to be claimed on the portion of eligible home renovation expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.

Will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.

Credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings, including houses, cottages, and condominium units owned for personal use.

Additional information available here

Source:  TREB ( Toronto Real Estate Board)

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Toronto Real Estate Board Mid December Update: Greater Toronto Home Resales at 1,500 in Mid December

TORONTO, December 17, 2008 — Greater Toronto REALTORS® reported 1,487 resale transactions during
the first half of December, from 2,868 sales recorded in the same period a year ago, Toronto Real Estate
Board President Maureen O’Neill announced today.

The average price of a home in the Greater Toronto Area is currently $360,652. This compares to an
average of $404,707 recorded during the first half of December 2007 and to an average of $343,048 recorded
during the same period in 2006.

“Keeping today’s market statistics in perspective, MLS® statistics confirm that over the last 10 years the
price of homes has increased in value. What this means for the consumer is that real estate continues to
hold its value and is a solid choice for long-term investments,” said Ms. O’Neill.

In the 416 area, 619 transactions were recorded during the first half of this month, from 1,402 sales that
took place during the same timeframe a year ago.

The average price in the 416 area is currently $382,759, from an average of $450,731 a year ago, and
$367,650 recorded in the first half of December 2006.

In the 905 region 868 homes changed hands in the first two weeks of this month, from 1,466 transactions
that took place in the first half of December 2007.

The 905 region’s current average price is $344,887 from an average of $360,691 recorded during the same
timeframe a year ago and $325,477 recorded at mid-December 2006.

“The recent C.D. Howe land transfer tax study confirms REALTORS’® concerns that the second LTT
imposed on homebuyers in the City of Toronto has indeed contributed to the economic conditions in the
GTA,” added Ms. O’Neill.

There are currently 24,708 listings on the TorontoMLS system, from 17,027 a year ago. The average number
of days a home now remains on the market is 43, as compared to 33 days a year ago. Sellers are achieving
96 per cent of their listing price, as compared to 98 per cent a year ago.

“Location, price and your own personal financial and family situation all play an important role when
considering a purchase,” said Ms. O’Neill. “REALTORS® can provide you with information about
neighbourhoods, school districts and realistic pricing because of their vast knowledge of the local
community.”

This mid month release does not provide a year in review analysis. A summary of activity for all of 2008
including the month of December will be provided in the January 2009 Market Watch Report.

Source: TREB (Toronto Real Estate Board)

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Toronto Land Transfer Tax Costs City’s Economy $170 million

TORONTO, December 10, 2008,  – Supported by a study on the impact of the Toronto Land Transfer Tax, recently authored by the C.D. Howe Institute and two University of Toronto Economics Professors, Greater Toronto REALTORS® are renewing calls for this tax to be rolled back.

“The housing sector is one of the most significant parts of Toronto’s economy,” said Maureen O’Neill, President of the Toronto Real Estate Board (TREB). “Unfortunately, the study prepared jointly by the C.D. Howe Institute and Economics Professors from the University of Toronto shows that the Toronto Land Transfer Tax has had a negative economic impact, which TREB estimates to be $170 million in 2008.”

The study found that the Toronto Land Transfer Tax, which costs average Toronto homebuyers approximately $4,000 in addition to a similar amount for the provincial Land Transfer Tax, has reduced
sales of re-sale single-family homes (condominiums not included in study) by 16 per cent, which means approximately 3,500 lost re-sale transactions in the first year of the tax. If condominiums are included, REALTORS® estimate that the impact could be in excess of 5,000 lost re-sale transactions in the first year of the tax.

A separate recent study, conducted by Altus Clayton for the Canadian Real Estate Association, determined that every re-sale housing transaction in Ontario generates approximately $33,425 in economic spin-off activity on things like renovations, furniture, and appliances. This means that losing 5,000 re-sale housing transactions because of the Toronto Land Transfer Tax costs the City’s economy approximately $170 million in consumer spending.

“When people buy a home, they usually spend thousands of dollars on related things like renovations, furniture, and appliances. Thousands of Toronto jobs depend on this spending,” said O’Neill. “Any City policy that impacts housing sales has a direct impact on the City’s economy and jobs.”

With the City currently preparing a recommended operating budget for 2009, TREB is calling on City Council to roll back the Toronto Land Transfer Tax.

“REALTORS® have been clear that we believe that the Toronto Land Transfer Tax is unfair and now a study by respected economists is validating that view. Not only is this tax unfair to home buyers and sellers, but also to the thousands of people whose jobs depend on the housing sector,” said O’Neill. “City Council can, and should, show leadership by rolling back the Toronto Land Transfer Tax.”

REALTORS® are looking forward to opportunities to provide input to the City’s 2009 Operating Budget.

Source: TREB (Toronto Real Estate Board)

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Toronto Real Estate Board Novemeber Update: Over 3,600 Greater Toronto Area Resale Housing Sales in November

TORONTO, December 04, 2008 — Greater Toronto REALTORS® recorded 3,640 transactions last month, from 7,313 sales in November 2007, Toronto Real Estate Board President Maureen O’Neill announced today.

Year-to-date sales figures for the Greater Toronto Area show 72,086 transactions in 2008, from 88,695 sales recorded in the same January to November period a year ago. By contrast, the 2008 year-to-date average price in the GTA is $379,489, from $375,445 in 2007.

“Its important for the public to understand that while sales activity has moderated in 2008, due to current economic conditions, the average price of homes has increased from 2006 still making real estate a solid long term investment,” said O’Neill.

In the 416 area, 1,523 transactions took place last month, from 3,426 sales recorded in November 2007. From a year-to-date perspective, there have been 28,806 sales in the 416 area this year, from 36,804 transactions a year ago.

In the 905 Region 2,117 homes changed hands last month, from November 2007’s 3,887 sales. The 905 Region’s year-to-date figures show 43,280 transactions this year, from 51,891 sales recorded during the same period in 2007.

“Homeownership in the Greater Toronto Area continues to be an affordable, stable and secure investment,” said Ms. O’Neill. “Home buyers and sellers should be confident about their bricks and mortar investment which provides shelter and a place to raise a family.”

“Home prices are affordable, interest rates are at historical low levels and the supply of homes for sale is good providing additional reasons for buyers thinking of entering the market,” added O’Neill.

The average price of a home in the GTA last month was $368,582, from $393,747 noted in November 2007. In November 2006 the average price was recorded at $355,727.

In the 416 area, last month’s average price was $390,225, from $433,859 noted in November 2007. The average price recorded in November 2006 was $381,188. From a year-to-date perspective the 2008 average price in the 416 area is $411,155, from last year’s $411,640.

In the 905 Region, the average price recorded last month was $353,012, from $358,391 recorded in November of 2007. In November 2006 the average price was $335,522. The year-to-date average price in the 905 Region this year is $359,245, from $349,774 in 2007.

The average number of days a home currently remains on the market in the GTA is 41, from an average of 32 days last November. There are currently 27,037 homes listed on the TorontoMLS system compared to 18,309 available properties in November 2007.

“While homeownership offers immediate benefits and long term value by way of equity, it also provides tax benefits over time,” said Ms. O’Neill. “If you bought a house five years ago, it would be worth more than 20 per cent more today.”

“As REALTORS®, we help build communities and will continue to do so even during challenging economic times,” added Ms. O’Neill. “It’s important to consult with a REALTOR® to get accurate local market information.”

Source: TREB (Toronto Real Estate Board)

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Toronto Real Estate Stats October 2008: City of Toronto

Today we are going to take a look at the real estate statistics for resale homes and condos.  These stats come from the Toronto Real Estate Boards MLS including all districts within the city of Toronto for the month of October 2008. 

Average Days on Market

The average days on market in Toronto during October 2008 was 32.03.  This was an increase of 19.39% over October 2007 and a decrease of 2.85% over 2006.

Housing Units Sold

There were 1,880 units sold in October.  This down 47.16% over 2007 and 38.56% over 2006.

Average Selling Price

The average selling price in October was $391,693.  This was down 9.80% from October 2007’s average of $434,246.  This number is down 0.15% over October 2006’s average of $392,292.

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Toronto Real Estate Board Update: Greater Toronto Resale Housing at 2,000 Sales in Mid-November

November 19, 2008 — Greater Toronto REALTORS® recorded 1,991 resale transactions during the first half of November 2008 from 3,544 sales recorded during the same period a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.

The Greater Toronto Area year-to-date figures show 70,474 sales in 2008 from 84,994 recorded during the same period in 2007. The year-to-date average price was recorded at $380,470 in 2008 from $374,678 in 2007.

In the 416 area, 830 homes changed hands in the first two weeks of November from 1,643 transactions recorded during the same time frame a year ago. The year-to-date figures show 28,126 compared to 35,045 recorded in 2007. In the 905 Region there were 1,161 sales during the first half of the month from the 1,901 transactions
recorded at mid-November 2007. The year-to-date figures show 42,348 compared to 49,949 recorded in
2007.

‘It’s particularly important to interpret the 416 area statistics in context given the market surge we saw a year ago when buyers moved to avoid the new Toronto Land Transfer Tax,” said Ms. O’Neill. “At midmonth a year ago, transactions in the 416 area had increased 24 per cent over the same period in 2006.”

In the first two weeks of November 2008, the average price of a home in the GTA was $375,712 compared to $393,084 recorded a year ago.

In the 416 area, homes are currently selling for an average of $400,305 from the $432,972 average recorded during the same time period in 2007. An average price of $383,029 was recorded in the first two weeks of November 2006.

In the 905 Region the average price is currently $358,130 from $358,610 recorded a year ago. During the first half of November 2006 the average price was recorded at $336,576.

“As an investment, a home not only offers shelter and an environment in which life’s most important moments are shared, but also offers financial appreciation in the long term, said Ms. O’Neill.”

Currently there are 27,562 homes listed for sale on the TorontoMLS system compared to a year ago when 20,173 properties were available. As such, the average time homes are remaining on the market is 41 days from 31 days in 2007. Sellers are currently achieving 97 per cent of their list price.

Source: TREB (Toronto Real Estate Board)

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Toronto Real Estate Board Outlook: GTA Resale Housing Market Continues to Reflect Economic Times

TORONTO, November 5, 2008 — The Greater Toronto Area resale housing market reported 5,155 sales in October, Toronto Real Estate Board President Maureen O’Neill announced today.

This represents a 35 per cent decline from the 7,915 sales reported in October 2007 and a 25 per cent decrease from the 6,876 transactions that took place during the same period two years ago.

In the City of Toronto, there were 2,136 sales, with sales activity down 38 per cent from the 3,455 transactions recorded last October.

In the 905 Region 3,019 sales were recorded, with sales activity down 32 per cent from a year ago when 4,460 homes changed hands.

With 68,570 transactions to date this year, sales are within 16 per cent of the 81,563 transactions noted a year ago. The 2007 market referred to was a record breaking year with each month breaking records for the entire year. Putting into perspective 2008 figures are indicative of a return to a more balanced market.

In the City of Toronto 27,324 sales year-to-date are within 18 per cent of the 33,441 transactions recorded last year at this time.

In the 905 Region the 41,246 sales to date are within 14 per cent of the 48,122 homes that changed hands up to this point a year ago.

In the City of Toronto, the current average price of a home is $376,896, down 13 per cent from last October’s average of $434,022 and within three per cent of the October 2006 average of $386,807.

In the 905 Region homes are selling for an average price of $336,049, a decline of eight per cent from October 2007’s average of $364,142. Prices in this area however, remain one per cent higher than the October 2006 average of $332,822.

“Earlier this year the International Monetary Fund undertook a study of housing markets in 17 countries and found that Canada was one of only two nations in which house prices are supported by the economy,” said Ms. O’Neill. “There’s no doubt that real estate will continue to be a solid long-term investment in our country.”

Source: TREB (Toronto Real Estate Board)

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Toronto Real Estate Board Market Update October 2008: More Than 5,000 Sales In October

November 5, 2008 — TREB Members reported 5,155 sales in October, down 35 per cent from the 7,915 sales reported in October of 2007, and also down 25 per cent from the 6,876 sales reported during October 2006.

Within the City of Toronto, 2,136 sales were recorded. This was down 38 per cent from the 3,455 sales recorded in October of last year. In the 905 suburbs, however, the 3,019 sales recorded were down 32 per cent from October 2007’s figure of 4,460.

GTA-wide, prices declined 10 per cent to $352,974 from last October’s average of $394,646. They were down one per cent over the average recorded in October 2006 of $356,423. As with sales, price declines differed according to region.The City of Toronto average was $376,896, down 13 per cent from the $434,022 recorded during the same month in 2007, and down about three per cent from the $386,807 recorded in October 2006. Meanwhile, the average for the City’s 905 suburbs was $336,049.This is down eight per cent from the $364,142 recorded last October, and up one per cent from the $333,166 recorded in October 2006.

Breaking down the total, 2,064 sales were reported in TREB’s 28 West districts and averaged $335,329; 892 sales were reported in the 14 Central districts and averaged $450,437; 946 sales were reported in the 23 North districts and averaged $382,032; and 1,253 sales were reported in TREB’s 21 East districts and averaged $290,719.

Source: TREB (Toronto Real Estate Board)

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Toronto Real Estate Board Update: Rental Transactions, Rental Rates Both Increase

Both leased transactions through the TorontoMLS system and monthly rents achieved in these transactions climbed in the second four-month period of 2008. Total units rented came to 4,297 (apartments and townhouses), up 12 per cent over the same timeframe in 2007. Meanwhile, benchmark two-bedroom apartments rented for $1,885 per month, up one per cent over the $1,860 per month recorded in the corresponding period of 2007, and in fact, rental prices in all categories rose.

The most active districts for rentals within the GTAfor apartment rentals remained in the downtown core (C01,which had 1,130 rental transactions), North York (C14, with 500 rentals), and Cooksville (W15, with 402 rentals). With townhouses, the most active districts were within Mississauga (W19 and W20, with 33 and 49 rentals respectively), and North York (C14, with 26 rentals).

As noted previously, rents in all categories of leased property increased during the May to August period. For example, bachelor apartments increased to $1,216 per month, from the $1,167 per month recorded in the middle portion of 2007, a four per cent rise. Three-bedroom townhouses saw a significant increase, up seven per cent to $1,780 per month from last year’s $1,661 figure.

Central Area

  • Most condo apartment leases took place in TREB’s Central area. Of the 2,437 total units rented, 1,397 were onebedroom units averaging $1,568 per month, and another 865 were two-bedroom units that rented for $2,155 per month.
  • The 2,437 figure is up nine per cent from the May to August period of 2007, when 2,244 apartment rentals took place. Since no new buildings that are dominated by rental units seem to have gone up, the increase seems largely due to heightened activity.
  • In TREB’s Central area there were 89 condominiumtownhouse rentals, with the greatest amount of activity taking place in North York Centre (C14), which had 26 units leased. Most townhouse rentals in the Central area (39) were threebedroon units that rented for an average of $2,664 per month.

Source:  TREB (Toronto Real Estate Board)

ALSO SEE

Toronto Real Estate Rentals Guide:  How to Successfully Lease a Condo.

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