Record Sales, Tremendous Growth of Real Estate Values But Not Enough Supply of Listings in the First Quarter of 2016

Toronto Real Estate Board President Mark McLean announced, in the beginning of April, a record TREB MLS® home sales for the first quarter of 2016 following a strong result for March transactions.  There were 10,326 sales in March and 22,575 sales in the first quarter. The year-over-year growth rate for sales was 15.8% for Q1 2016 and 16.2% for March 2016.  For the TREB market area as a whole, double-digit year-over-year rates of sales growth were experienced for all major home types during the first quarter.
The positive annual growth in sales was not mirrored on the listings front. The number of new listings entered into TREB's MLS® System during March and the first quarter were down compared to the same periods in 2015.
The average selling price for all home types combined was up 12.1 per cent year-over-year in March and 13.6 per cent in the first quarter.
“Demand was clearly not an issue in the first three months of 2016, regardless of the housing market segment being considered.  The supply of listings, however, continued to aggravate many would-be home buyers.  We could have experienced even stronger sales growth were it not for the constrained supply of listings, especially in the low-rise market segments.  The resulting strong competition between buyers has underpinned the double-digit rates of price growth experienced so far this year,” said Jason Mercer, TREB’s Director of Market Analysis.

Summary of TorontoMLS Sales and Average Price March 1 - 31, 2016
	2016			2015
	Sales	Average Price	New Listings	Sales	Average Price	New Listings
City of Toronto ("416")	3,627	699,745	5,528	3,178	656,022	6,092
Rest of GTA ("905")	6,699	681,919	9,336	5,709	590,320	9,343
GTA	10,326	688,181	14,864	8,887	613,815	15,435

TorontoMLS Sales & Average Price  By Home Type March 1 - 31, 2016
	Sales			Average Price
	416	905	Total	416	905	Total
Detached	1,075	3,879	4,954	1,174,358	837,217	910,375
Yr./Yr. % Change	3.2%	14.2%	11.6%	12.4%	18.2%	15.7%
Semi-Detached	319	667	986	817,611	551,903	637,867
Yr./Yr. % Change	11.5%	25.4%	20.5%	12.9%	15.7%	13.2%
Townhouse	397	1,154	1,551	623,534	498,296	530,353
Yr./Yr. % Change	21.4%	11.4%	13.8%	13.9%	13.6%	14.1%
Condo Apartment	1,808	833	2,641	416,251	330,865	389,319
Yr./Yr. % Change	20.7%	36.1%	25.2%	4.3%	6.6%	4.3%

Record Sales in February, Up 21.1%, Strong Competition Between Buyers makes Avg Selling Price go up by 14.9%. Some Properties Sell in the Same Day they are Listed.

Today, March 3rd, 2016, Toronto Real Estate Board President Mark McLean announced Greater Toronto Area REALTORS® reported a record number of home sales through TREB’s MLS® System in February 2016. There were 7,621 transactions reported this past February – up 21.1% compared to February 2015.

The number of new listings entered into TREB’s MLS® System was also up on a year-over-year basis, but by a lesser 8.2 per cent. The fact that the annual rate of sales growth outstripped the annual rate of new listings growth shows a tightening of market conditions compared to last year.

“Even after accounting for the leap year day, sales were above the previous record for February set back in 2010.  Sales were up strongly from the 15th day of the month onward as well, despite the new federal mortgage lending guidelines coming into effect that require at least a 10% down payment on the portion of purchase prices between $500,000 and $1,000,000,” said Mr. McLean.

Seller’s market conditions continued throughout the GTA in February.  Strong competition between buyers resulted in a healthy growth in selling prices. The average selling price was up by 14.9 per cent annually to $685,278.

“Recent polling conducted for TREB by Ipsos suggested that GTA households will remain upbeat about purchasing a home in 2016. Early sales results for January and February certainly support this view.  With strong sales up against a constrained supply of listings, home prices continued to trend strongly upward,” said Jason Mercer, TREB’s Director of Market Analysis.

TorontoMLS Sales & Average Price  By Home Type
	February 1 - 29, 2016
	Sales			Average Price
	416	905	Total	416	905	Total
Detached	855	2,772	3,627	1,211,459	816,705	909,761
Yr./Yr. % Change	11.8%	23.1%	20.3%	16.3%	17.4%	16.1%
Semi-Detached	239	486	725	848,835	534,476	638,106
Yr./Yr. % Change	21.9%	21.8%	21.8%	20.7%	12.7%	16.1%
Townhouse	253	849	1,102	578,667	493,092	512,739
Yr./Yr. % Change	11.0%	18.1%	16.4%	13.9%	13.8%	13.7%
Condo Apartment	1,439	607	2,046	435,579	327,086	403,392
Yr./Yr. % Change	25.6%	26.7%	25.9%	17.8%	1.6%	13.4%

A Higher Down payment if you purchase a property for more then $500.000

According to an article published by the Financial Post, Canadians looking to buy homes between $500,000 and $1 million will have to put down larger down payments as new federal rules took effect Monday, February 16, 2016. 

Under the changes, homebuyers must now put at least 10 per cent down on the portion of a home that costs more than $500,000. Buyers can still put down five per cent on the first $500,000 of a home purchase. Homes that cost more than $1 million still require a 20 per cent down payment.

This change … is the first attempt to recognize the fact that some parts of the country are in need of a mild tap on the break, while other parts of the country really need to continue to receive stimulus.

To read the entire article, please use this link: http://business.financialpost.com/personal-finance/mortgages-real-estate/new-mortgage-rules-for-homes-over-500000-go-into-effect-as-liberals-aim-to-limit-housing-risks

RECO - The Most Reliable Source of Information When You Are Contemplating Buying or Selling Real Estate

There’s no shortage of information available about buying and selling real estate, though much of it focuses on market trends and how to get the best price. But you also need information about your rights and responsibilities as a buyer or seller. How do you ensure you are protected?

Fortunately, the Real Estate Council of Ontario (RECO) is here to help. Just click the links below and exposed yourself to a fantastic World of important information from the most reliable source.

http://www.reco.on.ca/firsttimebuyer/

https://www.youtube.com/watch?v=r-17qUDy4Ys&index=1&list=PLWUG7craJL2q46bMnTVH_iaFE6dvMsaeG

Government of Canada Takes Action to Maintain a Healthy, Competitive and Stable Housing Market

Today, December 11, 2015, Finance  Minister Bill Morneau announced changes to the rules for government-backed  mortgage insurance to contain risks in the housing market, reduce taxpayer  exposure and support long-term stability. Effective February 15, 2016, the  minimum down payment for new insured mortgages will increase from 5 per cent to  10 per cent for the portion of the house price above $500,000. The 5 per cent  minimum down payment for properties up to $500,000 remains unchanged.

For example:Let’s say someone is buying a home for $700,000.  The minimum down payment would be:5% of the first $500,000 = $25,000 Plus, 10% of the remaining $200,000 = $20,000 Total minimum down payment would be $45,000

Here is the link to the Government's Official News Release:  http://news.gc.ca/web/article-en.do?nid=1024399&tp=1&_ga=1.114461767.1561939570.1449867552

RECORD SALES FOR THE MONTH OF NOVEMBER The average selling price for all transactions also up by almost 10% to $632,685.

Toronto Real Estate Board President Mark McLean announced today, December 3rd, that Greater Toronto Area REALTORS® reported 7,385 home sales through TREB’s MLS® System in November 2015 – up by 14 per cent compared to November 2014.  This result also represented the best result on record for the month of November.  Sales through the first eleven months of 2015 amounted to 96,401.

“Not only did we see a record sales result for November, but with one month left to go in 2015, we have already set a new calendar year record for home sales in the TREB market area, eclipsing the previous record set in 2007.  Sales were up on a year-over-year basis for all major home types, both in the City of Toronto and surrounding regions.  This suggests that the demand for ownership housing is widespread, from first-time buyers to long-time homeowners across the GTA,” said Mr. McLean.
The average selling price for all transactions was also up by an annual rate of 9.6 per cent to $632,685.
“Demand for ownership housing has remained strong in the GTA throughout 2015, with sales generally increasing at a greater annual rate compared to new listings.  This means that competition between buyers has strengthened in many neighbourhoods in the City of Toronto and surrounding regions.  The end result has been upward pressure on home prices well above the rate of inflation in most cases,” said Jason Mercer, TREB’s Director of Market Analysis.

Summary of TorontoMLS Sales and Average Price  November 1 - 30, 2015
	2015			2014
	Sales	Average Price	New Listings	Sales	Average Price	New Listings
City of Toronto ("416")	2,863	654,221	4,123	2,641	616,241	3,790
Rest of GTA ("905")	4,522	619,050	5,486	3,835	550,825	4,926
GTA	7,385	632,685	9,609	6,476	577,502	8,716

TorontoMLS Sales & Average Price  By Home Type November 1 - 30, 2015
	Sales			Average Price
	416	905	Total	416	905	Total
Detached	901	2,550	3,451	1,018,621	762,326	829,241
Yr./Yr. % Change	0.7%	18.5%	13.3%	8.8%	13.5%	10.7%
Semi-Detached	297	467	764	750,608	504,928	600,435
Yr./Yr. % Change	14.2%	21.0%	18.3%	12.4%	12.5%	11.8%
Townhouse	298	851	1,149	549,649	460,274	483,454
Yr./Yr. % Change	11.2%	15.8%	14.6%	9.1%	12.0%	10.9%
Condo Apartment	1,351	573	1,924	415,316	315,223	385,506
Yr./Yr. % Change	13.3%	22.7%	16.0%	5.4%	1.5%	4.1%

5 Questions to Ask Before hiring a Real Estate Professional

1. What is your experience?

2. What is your approach to the buying or selling process?

3. What services will be included?

4. What are the commissions or fees that I will need to pay?

5. Do you have references? 

For more detailed information on any of these questions, please visit RECO's (Real Estate Council of Ontario) Website: http://www.reco.on.ca/buyer-seller-news/5-questions-to-ask-before-hiring-a-real-estate-professional/