Toronto Real Estate Blog

TORONTO HOUSING STARTS CONTINUE TO SOAR IN APRIL

May 14, 2012

The seasonally-adjusted annual rate (SAAR) of total housing starts for the Toronto Census Metropolitan Area increased by 19 per cent to 69,500 units in April, according to preliminary housing starts data released today by the Canada Mortgage and Housing Corporation (CMHC). The acceleration in activity over the past two months has led starts to strongly deviate above trend levels represented by the six-month moving average. “Movement on construction sites has sped up and a lot of activity has been brought forward into the early part of the year” said Shaun Hildebrand, CMHC’s Senior Market Analyst for the GTA. “Strong buyer interest for new condo projects and the tightness in resale market conditions for low-rise homes have been big drivers” added Hildebrand. As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions. For more information, visit www.cmhc.ca...
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Greater Toronto April 2012 Real Estate Market Figures

May 3, 2012

Toronto, May 3, 2012 – Greater Toronto REALTORS® reported 10,350 transactions through the TorontoMLS System in April 2012. This level of sales was 18 per cent higher than the 8,778 firm deals reported in April 2011. The strongest sales growth was reported in the single-detached market segment, with transactions of this home type up by 22 per cent compared to a year ago. “Interest in single-detached homes has been very high, both in the City of Toronto and surrounding regions. Growth in single-detached listings has not kept up with demand, which means competition between buyers in this market segment increased. With this in mind, it was no surprise that the strongest annual price increase was also experienced in the single-detached segment,” said Toronto Real Estate Board President, Richard Silver. The average price for April 2012 transactions was $517,556 – up 8.5 per cent compared to April 2011. While price growth was strongest for single-detached homes, the better-supplied condominium apartment segment experienced a more moderate annual rate of price growth, at four per cent. “Monthly mortgage payments remain affordable for home...
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Condominium Assignments FAQ

April 28, 2012

General Questions 1. What is an assignment? An assignment is essentially a sale of a contract or right to acquire property. An assignment is a transaction whereby the original purchaser (the “Assignor”) of a property sells, and thereby transfers, their interest and obligations under the original contract to a new purchaser (the “Assignee”). The Assignee will generally assume all of the Assignor’s duties and obligations under the original Agreement of Purchase and Sale. These rights and obligations are stated in the original Agreement of Purchase and Sale and include terms such as interest payments, taxes and maintenance fees during interim occupancy. Upon completion, the Assignee is granted the title to the real property and will incur all final closing costs. a) Assignor: An Assignor is the original buyer of the unit from the Builder/Developer. b) Assignee: An Assignee is the buyer of the Agreement of Purchase and Sale from the Assignor. 2. Can an Agreement of Purchase and Sale, involving any type of real estate transaction, be assigned? Under normal circumstances, any Agreement of Purchase and Sale can...
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GTA REALTORS® Report Mid-Month Resale Housing Market Figures

April 20, 2012

Greater Toronto REALTORS® reported 4,557 transactions through the TorontoMLS system during the first two weeks of April 2012. This result represented an increase of almost seven per cent in comparison to the same period in April 2011. The number of new listings grew over the same period, but by a lesser annual rate than sales, which means market conditions tightened compared to last year. “Competition between buyers remained strong in many parts of the Greater Toronto Area during the first half of April, with many listings attracting a lot of attention. Strong competition meant that, on average, sellers priced within market value range received offers that matched their asking prices within three weeks,” said Toronto Real Estate Board President Richard Silver. The average selling price during the first two weeks of April was $506,954 – up by five per cent compared to the first half of April 2011. The annual rate of price growth was stronger in the GTA regions surrounding the City of Toronto. “Growth in listings has not kept up with growth in sales. In the City of...
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Bank of Canada maintains overnight rate target at 1 per cent

April 17, 2012

The today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. The profile for global economic growth has improved since the Bank released its January Monetary Policy Report (MPR). Europe is expected to emerge slowly from recession in the second half of 2012, although the risks around this outlook remain high. The profile for U.S. growth is slightly stronger, reflecting the balance of somewhat improved labour markets, financial conditions and confidence on the one hand, and emerging fiscal consolidation and ongoing household deleveraging on the other. Economic activity in emerging-market economies is expected to moderate to a still-robust pace over the projection horizon, supported by an easing of macroeconomic policies. Improved global economic prospects, supply disruptions and geopolitical risks have kept commodity prices elevated. In particular, the international price of oil has risen further and is now considerably higher than that received by Canadian producers. If sustained, these oil price developments could dampen the improvement in economic...
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TREB Market Watch – March 2012

April 16, 2012

March 2012, Toronto Real Estate

April 9, 2012

Dear Friends, There are so many crazy stories about real estate these days; houses selling above asking price, multiple offers and new condominiums selling out overnight. It is no wonder people get confused and concerned about the future of the real estate market. The fact is that real estate is much in demand, but for good reason. Let me review some of those reasons for you. First and foremost, let’s remember this is Canada! With so much turmoil around the world, Syria, Africa, Asia, the economic woes of Europe, Canada stands as a safe refuge from war, famine and religious persecution. Our doors are open to new immigrants, and up to 300,000 per year are settling in Canada with the majority in Ontario. Those immigrants with money to invest in real estate and business endeavours are preferred by Canadian Immigration Services, and thus real estate comes under greater demand as new immigrants often buy where previous generations would have rented. Secondly, our economy is very strong with many jobs and opportunities. As Toronto and the GTA have grown in population,...
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GTA REALTORS® Report Monthly Resale Housing Market Figures

April 4, 2012

Toronto, April 4, 2012 – Greater Toronto REALTORS® reported 9,690 sales through the TorontoMLS System in March 2012. This result was up by almost eight per cent in comparison to the 8,986 deals reported during the same period in 2011. “The GTA resale market has not suffered from a lack of willing buyers this year. Buyers have been spurred on by the positive affordability picture brought about by low mortgage rates,” said Toronto Real Estate Board President Richard Silver. “The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average.” The average selling price in the GTA was $504,117 in March – up by 10.5 per cent in comparison to March 2011. “The number of new listings was up last month in comparison to March 2011. However, based on the historic relationship between price and listings, the GTA resale market should be better supplied. If competition between buyers remains as strong as it is right now, we will almost certainly see...
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Homebuying activity strong out of the gate, as a more competitive market takes shape for spring 2012, says RE/MAX

March 24, 2012

Major Canadian real estate markets continued to show exceptional resiliency throughout the first quarter of the year, with strong demand and diminished supply setting the stage for a heated spring 2012, according to a report released by RE/MAX. The RE/MAX Market Trends Report, highlighting sales, price, trends and developments in 15 markets across the country, found that 12 of 15 Canadian centres (80 per cent) were reporting year-to-date (January-February) sales activity ahead of last year’s levels, with more than half reporting double-digit increases. Low interest rates, coupled with strong consumer confidence levels and a mild winter, played a significant role in the upswing, ushering in an early start to the spring market. Average price climbed in 14 of 15 markets (93 per cent) examined, yet appreciation was more tempered, with only three markets posting gains in excess of 10 per cent. Tighter inventory levels at entry-level price points have sparked bidding wars—particularly in Winnipeg and the Greater Toronto Area—with similar conditions starting to emerge in Saskatoon, Regina, London-St. Thomas, Hamilton-Burlington, Ottawa, St. John’s, and Halifax-Dartmouth. Given the current economic climate,...
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GTA REALTORS® Report Mid-Month Resale Housing Market Figures

March 24, 2012

–During the first 14 days of March, Greater Toronto REALTORS® reported 4,215 transactions through the TorontoMLS system, representing a seven per cent increase compared to the same period in 2011. The number of new listings was down by two per cent year-over-year to 6,970. “Home buyers continue to benefit from the affordable housing situation in the GTA. Immigration to Toronto and surrounding areas adds to the pool of home buyers every year. The economic and ethnic diversity found in the GTA consistently attracts newcomers and foreign investment,” said Toronto Real Estate Board (TREB) President Richard Silver. The average selling price for transactions between March 1 and 14 was $502,155 – up by more than nine per cent compared to the first 14 days of March 2011. On average, homes sold for 100 per cent of the asking price within three weeks. “Strong competition between home buyers in many parts of the GTA has resulted in sellers realizing their asking price in a short period of time. The fact that homes are selling for 100 per cent of the asking price,...
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Housing Market Charts- February 2012

March 6, 2012

GTA REALTORS® RELEASE RESALE MONTHLY MARKET FIGURES

March 5, 2012

– Greater Toronto REALTORS® reported 7,032 sales in February 2012 – up 16 per cent compared to February 2011. New listings were also up over the same period, but by a lesser 11 per cent to 12,684. It is important to note that 2012 is a leap year, with one more day in February. Over the first 28 days of February, sales and new listings were up by ten per cent and six per cent respectively. “With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price. Price growth will continue to be...
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Managing Expectations

February 25, 2012

A colleague and I recently had a discussion that I would like to share with you about a phenomenon she refers to as “HGTV syndrome”. It causes Buyers to assume that most properties are fitted with the spectacular finishings seen on so many of today’s popular home makeover shows. As a result, managing Buyers’ expectations is an increasing challenge. This aptly named syndrome seems to particularly affect first-time Buyers, whose expectations are often based solely on such programming. The reality though, is that much of the housing stock throughout our city is now more than 60 years old and in some cases, considerably older. In many households, owners are faced with undertaking essential improvements like replacing lead pipes or knob...
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Latest In-depth “Market According to Mercer” Video

February 25, 2012

The outlook for the global economy has changed since the beginning of 2011. Watch the latest Market According to Mercer video in the Learning Centre to find out what it all means for the GTA resale housing market. Jason Mercer presents his most recent outlook considering home sales, prices, interest rates, income and more.

GTA REALTORS® Report Mid-Month Resale Housing Market Figures

February 16, 2012

Toronto, February 16, 2012 – Greater Toronto REALTORS® reported 3,206 sales through the TorontoMLS® system through the first 14 days of February 2012 – up by more than nine per cent compared to the 2,933 sales reported during the same period in 2011. New listings were up by 13 per cent over the same period. “The GTA resale home market became better supplied during the first 14 days of February. If growth in new listings continues to outstrip growth in sales this year, competition between home buyers will ease. More balanced market conditions on a sustained basis would result in a lower annual rates of price growth later in 2012,” said Toronto Real Estate Board (TREB) President Richard Silver. The...
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Canadian Housing Market to Remain Steady

February 15, 2012

OTTAWA, February 13, 2012 — Housing markets are expected to remain steady in 2012 and 2013, according to Canada Mortgage and Housing Corporation’s (CMHC) first quarter 2012 Housing Market Outlook, Canada Edition1. “With the Canadian economy set to expand at a moderate pace and mortgage rates expected to remain low, activity levels in 2012 in both new home construction and sales of existing homes will stay close to levels seen in 2011,” said Mathieu Laberge, Deputy Chief Economist for CMHC. Housing starts will be in the range of 164,000 to 212,700 units in 2012, with a point forecast of 190,000 units. In 2013, housing starts will be in the range of 168,900 to 219,300 units, with a point forecast of...
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TREB President’s “You Should Know…” – Mortgages

February 10, 2012

January 2012 Housing Starts

February 10, 2012

OTTAWA — The seasonally adjusted annual rate1 of housing starts was 197,900 units in January, according to Canada Mortgage and Housing Corporation (CMHC). This is down from 199,900 units in December 2011. “The slight decrease posted in January was attributable to a decrease in Quebec and in Atlantic Canada”, said Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre. “The multiple starts segment accounted for most of the reduction in those two regions.” The seasonally adjusted annual rate of urban starts decreased by 2.8 per cent to 176,600 units in January. Urban single starts decreased by 7.8 per cent in January to 64,900 units, while multiple urban starts were slightly up by 0.4 per cent to 111,700 units. January’s...
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