February Sales Up by 5.7%, Number of Potential Buyers is Up, New Listings is Down, Prices Will Continue to Grow Strong

Toronto Real Estate Board President Larry Cerqua announced today, March 3rd, 2017, that Greater Toronto Area REALTORS® reported 8,014 residential sales through TREB’s MLS® System in February 2017.  This result was up on a year-over-year basis by 5.7 per cent compared to 7,583 sales reported last year.

According to the recent Ipsos survey of intending GTA home buyers, first-time buyers will continue to account for much of the demand for ownership housing in Toronto and the surrounding regions.  For the GTA as a whole, 53 per cent of likely buyers indicated that they would be first-timers – up from 49 per cent a year earlier.  First-time buying intentions were highest in the City of Toronto, where 64 per cent of likely home purchasers indicated they would be first-timers – up from 56 per cent a year earlier.  The higher percentage of first-time buyers in the City of Toronto likely relates to the prevalence of condominium apartments, which are a popular entry point into home ownership.

While the demand for ownership housing grew over the past year, new listings entered into TREB's MLS® System in February were down on a year-over-year basis by 12.5 per cent to 9,834. This continues a pattern we saw throughout much of 2016, with the sales trend pointing up while the listings trend has been down, which has resulted in a contraction of the inventory of homes available for sale. TREB's average months of inventory trend for February was at one month, while in many neighbourhoods across the GTA, inventory can now be measured in weeks rather than months.
"The listing supply crunch we are experiencing in the GTA has undoubtedly led to the double-digit home price increases we are now experiencing on a sustained basis, both in the low-rise and high-rise market segments. Until we see a marked increase in the number of homes available for sale, expect very strong annual rates of price growth to continue," said Jason Mercer, TREB's Director of Market Analysis.
The MLS® HPI Composite Benchmark Price was up by 23.8 per cent compared to February 2016. Similarly, the average selling price was up by 27.7 per cent year-over-year to $875,983. Annual rates of price growth continued to be strongest for low-rise home types, particularly detached houses. Growth rates for condominium apartment prices were also in the double digits, likely a result of strong demand from first-time buyers.

For More Info, please click below:
TREB Market Watch February 2017

Summary of TorontoMLS Sales and Average Price February 1 - 28, 2017
	2017							2016
	Sales		Average Price		New Listings			Sales	Average Price		New Listings
City of Toronto ("416")	2,900		859,186		3,586			2,794	720,633		4,457
Rest of GTA ("905")	5,114		885,508		6,248			4,789	665,380		6,777
GTA	8,014		875,983		9,834			7,583	685,738		11,234
TorontoMLS Sales & Average Price  By Home Type February 1 - 28, 2017
		Sales					Average Price
		416		905		Total	416			905		Total
Detached		793		2,928		3,721	1,573,622			1,106,201		1,205,815
Yr./Yr. % Change		-6.8%		6.0%		3.0%	29.8%			35.4%		32.5%
Semi-Detached		199		452		651	1,085,484			712,276		826,359
Yr./Yr. % Change		-16.0%		-6.2%		-9.5%	27.6%			33.2%		29.4%
Townhouse		257		908		1,165	671,243			653,584		657,480
Yr./Yr. % Change		2.4%		7.7%		6.5%	15.7%			32.4%		28.0%
Condo Apartment		1,632		728		2,360	515,424			404,460		481,194
Yr./Yr. % Change		14.0%		20.3%		15.9%	18.2%			23.6%		19.2%

Average selling price last January was up by 22.3% with double-digit gains in the average prices for all major home types.

Last Friday, February 3rd, 2017 Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 5,188 residential transactions through TREB's MLS® System in January 2017. This result was up by 11.8% compared to 4,640 sales reported in January 2016. Annual rates of sales growth were higher for condominium apartments than for low-rise home types.

January 2017 picked up where 2016 left off: sales were up on a year-over-year basis while the number of new listings was down by double-digit annual rates for most major home types.

"Home ownership continues to be a great investment and remains very important to the majority of GTA households. As we move through 2017, we expect the demand for ownership housing to remain strong, including demand from first-time buyers who, according to a recent Ipsos survey, could account for more than half of transactions this year. However, many of these would-be buyers will have problems finding a home that meets their needs in a market with very little inventory," said Cerqua.

The average selling price in January was up by 22.3% to $770,745, with double-digit gains in the average prices for all major home types.

“The number of active listings on TREB’s MLS® System at the end of January was essentially half of what was reported as available at the same time last year.  That statistic, on its own, tells us that there is a serious supply problem in the GTA – a problem that will continue to play itself out in 2017.  The result will be very strong price growth for all home types again this year,” said Jason Mercer, TREB’s Director of Market Analysis.

For more detailed info, check out the link below for Treb's "Market Watch":

http://www.trebhome.com/market_news/market_watch/2017/mw1701.pdf

136 Harvie Avenue, Toronto ON

SOLD

We had 12 Showings in two hours and 2 offers followed immediately. This property was sold in less then a day.

(1 Block North of St. Clair Ave. West at Lansdowne)

Asking: $600,000.00

MLS # W3687248

Spacious & Clean Semi-Detached All Brick Home on a 20.56 X 128 Feet Lot w/ 3 Br, Two 4 Pc Washrooms, Kitchen with back splash, Pot Lights, Double Sink & W/O To Backyard, Living Rm with Brick Fireplace, Hardwood floors and Window Separated from Dining Rm by French Doors. Finished Basement w/ Above Grade Windows, Lots Of Storage, detached One Car Gar. Just One Block from Street Car on St. Clair West, Walk To Outdoor Skating Rink, Indoor/Outdoor Swimming Pools & Basketball Courts, Soccer Field, Gym, Dog Park, Library, Restaurants, Cafes, Groceries.

Home Inspection Report Available Upon Request.

Record Real Estate Sales in 2016. December Average Selling Price Up 20%. Low Supply of Listings Remains.

Toronto Real Estate Board President Larry Cerqua announced today, January 5, 2017 that 2016 was a second consecutive record year for home sales. Greater Toronto Area REALTORS® reported 113,133 home sales through TREB’s MLS® System – up by 11.8 per cent compared to 2015.
The calendar year 2016 result included 5,338 sales in December – an annual increase of 8.6 per cent. The strongest annual rate of sales growth in 2016 was experienced for condominium apartments followed by detached homes.
“A relatively strong regional economy, low unemployment and very low borrowing costs kept the demand for ownership housing strong in the GTA, as the region’s population continued to grow in 2016,” said Mr. Cerqua.
The overall average selling price for calendar year 2016 was $729,922 – up 17.3 per cent compared to 2015. The pace of the annual rate of growth for the average selling price also picked up throughout the year, including a climb of 20 per cent in December. “Price growth accelerated throughout 2016 as the supply of listings remained very constrained. Active listings at the end of December were at their lowest point in a decade-and-a-half. Total new listings for 2016 were down by almost four per cent.
In 2016, we saw policy changes and policy debates pointed at the demand side of the market. If we want to see a sustained moderation in the pace of price growth, what we really need is more policy focus on issues impacting the lack of homes available for sale,” said Jason Mercer, TREB’s Director of Market Analysis. 

More from TREB Market Watch:
http://www.trebhome.com/market_news/market_watch/2016/mw1612.pdf

Fortes Realty Inc., Brokerage Sold Properties

Fortes Realty Inc., Brokerage Sold Properties in Greater Toronto Area

By Julio and Natalia Fortes since 2005.

Please use the link below.

https://www.google.com/maps/d/edit?mid=1fgjiNIWtBmGni-NWZX3HZ1GfFWI&ll=43.70321628384674%2C-79.41775024999998&z=10

Toronto Real Estate Market (Sales & Prices) Continues Strong in November

Larry Cerqua, President of Toronto Real Estate Board annouced on December 2, 2016 that Greater Toronto Area REALTORS® reported 8,547 home sales through TREB's MLS® System in November 2016. This result represented a 16.5 per cent increase compared to November 2015. For the TREB market area as a whole, sales were up on a year-over-year basis for all major home types. The strongest annual rates of sales growth were experienced for the townhouse and condominium apartment segments. "Home buying activity remained strong across all market segments in November. However, many would-be home buyers continued to be frustrated by the lack of listings, as annual sales growth once again outstripped growth in new listings. Seller's market conditions translated into robust rates of price growth," said Mr. Cerqua. The MLS® Home Price Index (HPI) Composite Benchmark was up by 20.3 per cent compared to November 2015. The average selling price at $776,684 was up by 22.7 per cent on a year-over-year basis. 
"Recent policy initiatives seeking to address strong home price growth have focused on demand. Going forward, more emphasis needs to be placed on solutions to alleviate the lack of inventory for all home types, especially in the low-rise market segments,” said Jason Mercer, TREB’s Director of Market Analysis. 

For a more detailed info about sales and average prices by area and Home type, please use this link: http://www.trebhome.com/market_news/market_watch/2016/mw1611.pdf

Ontario Government Announces Provincial LTT Changes

According to Toronto Real Estate Board (TREB), yesterday November 14, 2016, the provincial government announced significant changes to the Provincial Land Transfer Tax (PLTT), including a doubling of the rebate available to first-time home buyers, bringing it in line with the City of Toronto's rebate, and an increase in the PLTT paid on the portion of the price of properties over $2,000,000 to help pay for the increase in the first-time buyer rebate. 

• The provincial government is proposing to double the maximum rebate for first-time home buyers from $2,000 to $4,000.  This change would bring the PLTT rebate in line with the City of Toronto LTT rebate.  The real estate industry welcomes this change, which will help to make housing more affordable in the GTA.

• The provincial government is proposing to increase the PLTT for homes priced over $2,000,000 by charging 2.5% on the portion of the value above $2,000,000 (currently this portion is charged 2%). 

• For non-residential properties, the provincial government is proposing to increase the PLTT on the portion of the value above $400,000 to 2% (currently this portion is charged 1.5%). 

• As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016 would not be subject to the increased rates of tax.
  
  TREB welcomes the increase to the provincial first-time buyer rebate to bring it in line with a similar rebate in the City of Toronto as long overdue. TREB, however, always has concerns with tax increases on property, and governments should be focused on measures to make property ownership in the GTA more affordable, not more expensive. 

• The provincial government is proposing to restrict eligibility of the first-time home buyer rebate to Canadian citizens and permanent residents, effective January 1, 2017.  As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016 would remain eligible for the refund, regardless of citizenship or residency status.

For more details from the Provincial Government click below:

http://www.fin.gov.on.ca/en/budget/fallstatement/2016/chapter5b.html

181 Fern Avenue, Row House in Roncesvalles Area

SOLD

Asking $799,900.00

Roncesvalles Village Starter Home. First Time on the Market in decades. Spacious Brick Row House with 3 Bedrooms, 2 Bathrooms, Kitchen with Walk Out to Deck in Backyard, Separate Entrance to Open Basement, 1 Parking Space off Lane Way on a Lot of 14.83 Feet by 116.62 Feet Short walk to St. Joseph's Health Centre, Lakeshore, High Park, Sorauren Park, Steps to trendy Roncesvalles for TTC, Groceries, Restaurants, Cafes, Bars, Bakeries, Banks, Library... Walk Score of 94 out of 100. This location is a Walker's Paradise so daily errands do not require a car.

The New Mortgage Rules

1. The Federal Government will restrict insurance on mortgages to loans on owner-occupied dwellings with amortization periods less than or equal to 25 years, purchase prices of less than $1 million, and for borrowers who meet a minimum credit score standard of 600.

2. All insured mortgages in Canada (any mortgage where the borrower puts less than 20% down...) will be underwritten using posted rates to qualify borrowers based on their income. That means a borrower that could qualify for a mortgage at a 5-year fixed rate of 2.29% now will have to qualify - as of the 17th of October - at the qualifying rate of 4.64%.

3. Foreign Buyers will need to prove that a home they sell is their primary residence to avoid capital gains tax exemption abuse.

Canada's new mortgage rules could leave millennials struggling to buy a home. Millennials could lose as much as 20 per cent of their "purchasing power" when new federal mortgage rules kick in on October 17. 

"Purchasing power" means the amount they (home buyers) can borrow to buy a home.

But there are benefits, too. Such as keeping them from buying properties they can't afford.

A family with a household income of $80,000.00 can currently buy a $505,000 home with a five per cent down payment.

But that wouldn't be possible under the new rules because of a "stress test" requiring all insured mortgages, which have down payments of less than 20 per cent, to be qualified at higher Interest Rates.

This hypothetical family could only buy a $405,000.00 property under the new rules — $100,000, or 20 per cent less than what they could have had before.
The effects of these changes are hard to predict on each individual housing market in Canada. But it's probably safe to say that it'll cool the hot ones. 
According to BNN, mortgage lenders are "swamped" as home buyers rush into the market ahead of new rules that will undercut the average family's home-buying power. 
http://www.bnn.ca/mortgage-lenders-swamped-as-homebuyers-race-to-beat-new-stress-test-rules-1.585079

186 Pearson Avenue, Detached Duplex at Roncesvalles and Queen St. West

SOLD: 

Asking $1,300,000.00

186 Pearson Avenue, Toronto ON

(Roncesvalles & Queen St. West)

Detached, 3-Storey, Duplex, 4 bedrooms + 1, 4 Washrooms, 2 Kitchens + 1, Finished basement with Separate Entrance, One Car Detached Garage, Backyard Deck on a 31 X 128 Feet Lot and Tons of Potential, Steps to Trendy Roncesvalles for TTC, Groceries, Restaurants, Cafes, Bars, Bakeries, Banks, Libraries, St. Joseph's Health Centre... Lakeshore and High Park. 

Three Properties Sold in September. With Our Commission Rate, our Sellers are Saving 10s of Thousands. You can do the same

During the month of September we Sold 3 properties in Great Toronto Area: 

Listing Agents for 9 Reeve Road, Brampton (Williams Parkway & Main St.)

Semi-detached, 3 bedrooms raised bungalow w/ built-in garage & Basement Apartment on a 30 X 108 Feet Lot

Buyer Agents for 286 Lauder Avenue, Toronto (Dufferin St. & St. Clair Ave.)

Detached Duplex with 3 Large Apartments & double detached garage on a 46 X 120 Feet Lot

Listing Agents for 1663 Warren Drive, Mississauga (Dixie Road & Eastgate Pkwy)

Semi-detached, 4 bedrooms back-split raised bungalow w/ built-in double garage on a 30.16 X 125 Feet Lot

Housing Market Figures Show Record Home Sales & Price Growth in August

Yesterday, September 6, 2016, Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported a record 9,813 sales through TREB’s MLS® System in August 2016.

While this sales result was 23.5% above the number of transactions reported for August 2015, it is important to note that the majority of sales are reported on working days and there were two additional working days in August 2016 compared to 2015.  When the year-over-year discrepancy in working days is accounted for, the annual percentage change in sales is closer to 13%.

“The conditions underlying strong demand for ownership housing remained in place, including a relatively strong regional economy, growth in average earnings and low borrowing costs.  Unfortunately, we did not see any relief on the listings front, with the number of new listings down compared to last year.  This situation continued to underpin very strong home price growth, irrespective of home type or area,” said Mr. Cerqua.

The average selling price for all home types combined was up by 17.7% on an annual basis to $710,410.  Both the MLS® HPI benchmarks and average prices for low-rise home types were up by double digits percentage-wise.

“Population in the GTA continues to grow.  The resulting growth in households coupled with favourable economic conditions and low borrowing costs means that we remain on track for another record year for home sales.  Against this backdrop, TREB will also be releasing new third-party research, and consumer and REALTOR® survey results throughout the fall and winter, with discussions focusing on foreign buying activity and issues affecting the supply of ownership housing,” said Jason Mercer, TREB’s Director of Market Analysis.

For more detailed information and Economic Indicators, please use the link: http://www.trebhome.com/market_news/market_watch/2016/mw1608.pdf

Bank of Canada Keeps Interest Rate Unchanged at 0.5%

According to "Toronto Star" this Wednesday, September 7, 2016, The Bank of Canada held its key interest rate target steady at 0.5 per cent but raised concerns after the export sector disappointed earlier this year.

“While the strength in exports during July was encouraging, the ground lost over previous months raises the possibility that the profile for economic activity will be somewhat lower than anticipated,” the central bank said in its rate announcement.

The Canadian economy contracted at an annual pace of 1.6 per cent in the second quarter, worse than the 1.0 per cent pace that had been forecast by the Bank of Canada in its July monetary policy report.

Full Article: https://www.thestar.com/business/2016/09/07/bank-of-canada-keeps-interest-rate-unchanged-at-05-.html

At just shy of 10,000 transactions, this was the best result on record for the month of July

Today, August 4th, 2016, Toronto Real Estate Board President Larry Cerqua announced that TREB REALTOR® Members reported 9,989 home sales through TREB’s MLS® System in July 2016. At just shy of 10,000 transactions, this was the best result on record for the month of July.

While sales were up on a year-over-year basis, the number of new listings was down over the same period, representing the continuation of a troubling trend in the GTA.

“GTA REALTORS® have been working very hard on behalf of their buyer clients to help them find a home meeting their needs. Unfortunately, listings for single-detached and semi-detached houses and town houses continue to be in short supply. The result has been an increase in pent-up demand and annual rates of price increases well above the rate of inflation. Housing policy is now top of mind for all levels of government. Policy makers need to be focusing on solutions to the sustained lack of low-rise inventory throughout the GTA,” said Mr. Cerqua.

The MLS® Home Price Index (HPI) Composite Benchmark was up by 16.7% in July 2016 compared to the same month a year earlier. Similarly, the average selling price for all home types combined was up by 16.6% year-over-year to $709,825.

“Relatively strong labour market conditions, above-inflation average income growth, and record low borrowing costs have kept many households confident about purchasing a home. As long as very strong buying intentions are up against an extreme shortage of listings, expect home price growth to greatly outpace the rate of inflation,” said Jason Mercer, TREB’s Director of Market Analysis.

For more information, use the link below:

http://www.trebhome.com/market_news/market_watch/2016/mw1607.pdf

June Numbers Show Sales Up by 7.5%, Average Selling Price Up by 16.8%, Meaning High Demand and Low Inventory

On July 6, 2016, Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 12,794 residential transactions through TREB’s MLS® System in June 2016. This result was 7.5% higher than the 11,905 sales reported in June 2015. In line with the prevailing trend so far this year, the number of new listings was down by 3.8%.

“... we are certainly in an interesting environment for ownership housing. There is no doubt that demand is at a record level, but would-be home buyers continue to face an uphill battle against a constrained supply of listings, which has perpetuated strong price growth. Buyers and sellers alike continue to benefit from the value a REALTOR® brings to a transaction,” said Mr. Cerqua.

“As the federal, provincial and local levels of government discuss housing policy in the coming months, issues affecting the lack of supply in the GTA should be of paramount importance. TREB will be undertaking, and making public, results of additional research in the second half of 2016, with the goal of proactively adding to the housing policy discussion,” added Mr. Cerqua.

The MLS® Home Price Index Composite Benchmark was up by 16% on a year- over-year basis. The average selling price for all home types combined was up by a slightly higher annual rate of 16.8% to $746,546. The single-detached, semi- detached and townhouse market segments led the way in terms of price growth.

“When TREB surveyed consumer intentions for 2016, we found that the majority of GTA households who were likely to purchase a home continued to be pointed towards some form of ground oriented housing.  This is why we continue to see strong competition between buyers in many neighbourhoods where supply remains constrained,” said Jason Mercer, TREB’s Director of Market Analysis.

For More Detailed Info, use the link below:

http://www.trebhome.com/market_news/market_watch/2016/mw1606.pdf

‘Turbocharged’ market: Toronto luxury sales finish second in the world in 2015, says new study

A new study...  says Toronto’s luxury sales activity makes it the second hottest market in the world, according to an article published today by "Financial Post". Sales in the so-called luxury segment of the market in Canada’s largest city were up 48 per cent from a year ago, playing it just behind Aukland, New Zealand on the list of 100 markets surveyed. 
Toronto’s turbocharged luxury market continues to be a function of fairly short supply and steadily increasing demand...
For the purposes of the study, the “luxury real estate” market in Toronto was defined as properties that sold for US$3 million or more...
...Canada remains an attractive country for luxury property buyers, despite rising prices.
“Strong governmental, banking and investment systems, favorable migration trends, leading educational institutions and stable employment have all caused our market to defy the decline that other marketplaces are experiencing in terms of sales volume and average prices,” ...
For the entire article, please use this Link: http://business.financialpost.com/personal-finance/mortgages-real-estate/toronto-luxury-sales-finish-second-in-the-world-in-2015-says-new-study

April Record Sales Up 7.4% Despite Significant Lack of Available Inventory in Toronto. Thus Demand Remains Strong for All Types Ownership Housing

Today, May 4, 2016 Toronto Real Estate Board President Mark McLean announced that there were12,085 sales reported through TREB’s MLS® System in April 2016.  This result, which represented a record for the month of April, was up by 7.4% in comparison to April 2015.

For the TREB market area as a whole, annual sales growth was experienced for all major home types except semi-detached houses.  In the City of Toronto, sales were down for detached and semi-detached houses as well as townhouses on a year-over-year basis.  This dip in sales in the ‘416’ area code was due to a lack of low-rise listings.
“Demand remained strong for all types of ownership housing. This suggests that Canadians continue to see the value in investing in homeownership, and on May 17, I encourage all homeowners to celebrate with us on National Real Estate Day,” said Mr. McLean.
“While April’s sales result represented a new record for sales, that number could have been even higher if we had benefited from more supply.  In the City of Toronto in particular, some households have chosen not to list their home for sale because of the second substantial Land Transfer Tax and associated administration fee.  The lack of available inventory, coupled with record sales, continued to translate into robust annual rates of price growth,” continued Mr. McLean.
The average selling price was up by 16.2%. The higher growth rate reported for the average home price, points to a greater share of high-end home sales this year compared to last.
“As we move into the busiest time of the year, in terms of sales volume, strong competition between buyers will continue to push home prices higher.  A greater supply of listings would certainly be welcome, but we would need to see a number of consecutive months in which listings growth outpaced sales growth before market conditions become more balanced,” said Jason Mercer, TREB’s Director of Market Analysis.

Summary of TorontoMLS Sales and Average Price
	April 1 - 30, 2016
	2016			2015
	Sales	Average Price	New Listings	Sales	Average Price	New Listings
City of Toronto ("416")	4,248	766,472	6,155	4,057	690,658	7,144
Rest of GTA ("905")	7,837	724,235	10,097	7,197	605,336	10,894
GTA	12,085	739,082	16,252	11,254	636,094	18,038

TorontoMLS Sales & Average Price  By Home Type
	April 1 - 30, 2016
	Sales			Average Price
	416	905	Total	416	905	Total
Detached	1,401	4,661	6,062	1,257,958	881,413	968,437
Yr./Yr. % Change	-4.0%	11.2%	7.2%	18.9%	20.7%	18.9%
Semi-Detached	371	766	1,137	901,159	572,318	679,618
Yr./Yr. % Change	-10.8%	2.8%	-2.1%	23.8%	16.9%	18.2%
Townhouse	440	1,402	1,842	611,899	514,774	537,974
Yr./Yr. % Change	-2.0%	4.8%	3.1%	11.0%	14.8%	13.4%
Condo Apartment	1,997	812	2,809	436,545	343,439	409,631
Yr./Yr. % Change	17.4%	9.4%	15.0%	7.0%	7.8%	7.6%