October Sales Were the Best on Record

Toronto Real Estate Board President Mark McLean announced, November 5, 2015, that Greater Toronto Area REALTORS® reported 8,804 home sales through TREB’s MLS® System in October 2015.  This is the best result on record for the month of October.

“It is clear that many GTA households remain upbeat about home ownership because owning a home represents a high quality, long-term investment.  We will see a big, new record this year for home sales reported through TREB’s MLS® System,” said Mr. McLean.

“Despite the record October result, I must point out that the Government of Ontario could hamper home sales in the near future. The Wynne government is seriously considering allowing municipalities throughout Ontario to institute a second land transfer tax on top of the existing provincial tax.  Recent polling has shown that the great majority of Ontarians oppose this tax and would consider delaying a move if they were forced to bear the additional upfront cost,” added Mr. McLean.

The MLS® Home Price Index (HPI) Composite Benchmark was up by 10.3 per cent year over year in October. Over the same period, the average selling price for all home types combined was up by 7.3 per cent to $630,876. Price growth continued to be driven by the low-rise market segments.

“Record sales coupled with a constrained supply of listings in many GTA neighbourhoods has underpinned very strong price growth throughout 2015. Even if we do see a greater supply of low-rise listings in the marketplace over the next year, market conditions will remain tight enough to see continued price growth well-above the rate of inflation,” said Jason Mercer, TREB’s Director of Market Analysis.

Summary of TorontoMLS Sales and Average Price  - October 1 -31, 2015
	2015			2014
	Sales	Average Price	New Listings	Sales	Average Price	New Listings
City of Toronto ("416")	3,431	671,350	5,593	3,404	633,483	5,665
Rest of GTA ("905")	5,373	605,030	7,746	5,108	557,598	7,724
GTA	8,804	630,876	13,339	8,512	587,945	13,389

TorontoMLS Sales & Average Price  By Home Type – October 1 -31, 2015
	Sales			Average Price
	416	905	Total	416	905	Total
Detached	1,077	3,023	4,100	1,071,394	734,745	823,177
Yr./Yr. % Change	-9.7%	2.4%	-1.1%	12.5%	9.1%	9.2%
Semi-Detached	381	542	923	747,149	512,234	609,203
Yr./Yr. % Change	1.9%	4.2%	3.2%	10.0%	13.8%	11.6%
Townhouse	347	1,030	1,377	579,358	456,585	487,524
Yr./Yr. % Change	-3.6%	9.1%	5.6%	11.2%	10.1%	9.8%
Condo Apartment	1,587	632	2,219	406,792	318,317	381,593
Yr./Yr. % Change	9.7%	9.7%	9.7%	4.2%	3.0%	3.9%

Interest Rates Down, Again

... and so, yesterday, July 15, 2015, the Central Bank of Canada cuts Interest Rates for the second time this year. Right after, the Canadian dollar loses value, which is a natural and expected consequence.
Exports seem to be the main factor behind such decision. Canada's merchandise trade deficit widened in May to $3.34 Billion from $2.99 Billion in April. Exports fell for the fifth month, second largest deficit on record after $3.57 Billion shortfall in March, according to Statistics Canada.
Canada's been struggling with its exports for sometime now because its products, goods and services are sold by other Countries at lower prices, or don't have much demand because other Countries are either already making the same or are economically struggling too.
Canada already lost market share in the US to countries such as China, Mexico and South Korea due to a high Dollar.
Oil prices dropped recently forcing the industry, specially in Alberta, to cut jobs and cancel investments.
So, by cutting interest rates (Canadian dollar falls against other currencies), the Central Bank is trying to make Canadian exports more attractive, competitive and increase sales, keep manufacturing jobs alive and reduce the gap between Exports and Imports.
It might benefit Tourism as well, since it becomes cheaper for tourists to come visit and shop in Canada.
On other hand, with the interest rates even lower, many already speculate that Real Estate market will be even hotter. But I'm almost certain, the lenders will increase the percentage of down payment.

Trade Deficit Might Be the Reason for Low Interest Rates

Positive net exports (when exports are higher than imports) contribute to economic growth, something that is intuitively easy to understand. More exports mean more output from factories and industrial facilities, as well as a greater number of people employed to keep these factories running. The receipt of export proceeds also represents an inflow of funds into the country, which stimulates consumer spending and contributes to economic growth.

On other hand, a high level of imports might also indicate robust domestic demand and a growing economy. It’s even better if these imports are mainly of productive assets like machinery and equipment, since they will improve productivity over the long run.

Canada, however, is currently facing a Trade deficit meaning the Exports are less than the Imports.

According to StatsCan, Canada's exports declined 0.6% in May while imports edged up 0.2%. Export volumes decreased 2.5% and prices increased 1.9%. Meanwhile, import volumes were up 0.3% and prices edged down 0.1%.

As a result, Canada's merchandise trade deficit with the world widened from $3.0 billion in April to $3.3 billion in May. This means, whatever we produce or manufacture for export can be bought from other countries at a cheaper price.

So, hiking interest rates too soon would result in a stronger loonie (dollar), dampened Canadian Exports even more and put jobs at risk.

June Sales Represent a New Record, Avg. Selling Price up by 12.3% and Supply cannot satisfy Demand

Toronto Real Estate Board President Mark McLean announced July 7, 2015 that Greater Toronto Area REALTORS® reported 11,992 sales through TREB’s MLS® System in June 2015.  This result represented a new record for the month of June and an 18.4 per cent increase over the June 2014 result of 10,132.

“As I begin my term as TREB President, I think it is important to point out that our region continues to grow in response to our diverse economic, ethnic and cultural bases.  The GTA consistently receives international accolades as one of the best places in the world to live and do business.  As the number of households grow, many of them will take advantage of the diversity of affordable home ownership opportunities that exist in Toronto and the surrounding areas,” said Mr. McLean.

Selling prices were up markedly on a year-over-year basis in June, for all major home types. The average selling price was up by 12.3 per cent over the same period to $639,184.

High-end homes have accounted for a greater share of overall transactions this year compared to last year.  

“It is encouraging to see that new listings have edged upward so far this year, as homeowners have reacted to strong home price growth and have looked to take advantage of increased equity in their homes.  However, the annual rate of sales growth continues to far outstrip listings growth, which means that there remains a lot of willing buyers in the marketplace who haven’t found a home that meets their needs.  As long as this situation persists, expect home prices to trend strongly upward,” said Jason Mercer, TREB’s Director of Market Analysis.

The Average Price of a Detached Home in Toronto (416 Area) went up 14.2% to $1,051,912.00.

Summary of TorontoMLS Sales and Average Price
	June 1 - 30
	2015			2014
	Sales	Average Price	New Listings	Sales	Average Price	New Listings
City of Toronto ("416")	4,406	$682,264	7,169	3,780	$618,526	6,499
Rest of GTA ("905")	7,586	$614,162	10,577	6,352	$539,806	10,134
GTA	11,992	$639,184	17,746	10,132	$569,174	16,633

TorontoMLS Sales & Average Price  By Home Type
	June 1 - 30, 2015
	Sales			Average Price
	416	905	Total	416	905	Total
Detached	$1,488	$4,457	$5,945	$1,051,912	$738,016	$816,583
Yr./Yr. % Change	13.7%	20.0%	18.3%	14.2%	15.0%	14.3%
Semi-Detached	$456	$754	$1,210	$761,819	$496,740	$596,638
Yr./Yr. % Change	1.8%	10.6%	7.1%	13.2%	10.7%	11.0%
Townhouse	$509	$1,396	$1,905	$539,259	$459,004	$480,447
Yr./Yr. % Change	21.2%	18.4%	19.1%	10.8%	14.0%	13.1%
Condo Apartment	$1,906	$794	$2,700	$418,599	$324,388	$390,894
Yr./Yr. % Change	21.3%	25.2%	22.4%	7.0%	4.6%	6.3%

The Canadian rich are getting richer, thanks to their houses

According to an Article published today, Monday, May 25th by the "Financial Post" (National Post), Real estate is making everyone richer on paper, including those already wealthy.

A survey released Monday from Bank of Montreal of its high net worth clients, those who have more than $1 million in investible assets, finds their primary residences in Canada are worth almost $1.5 million on average. 

These people like their real estate – 36 per cent own a second property with an average value of $708,539. In the group that owns a second property, 40 per cent own two or more properties. Most wealthy Canadians surveyed are free and clear of their mortgage and even among those with debt, the average amount they have outstanding is $176,000.

On the second property front, 80 per cent of respondents who have one, say it is in Canada. Another 27 per cent have property in U.S., 11 per cent in Europe, eight per cent in Central America, South America or the Caribbean, seven per cent in either Mexico or Asia and five per cent in Australia.

Vacation purposes were cited by 47 per cent of respondents with second properties as the number one reason for owning. The second reason for owning was for investment purposes at 39 per cent, followed by income-generating property at 36 per cent.

For more on this topic, click the link below:

http://business.financialpost.com/personal-finance/mortgages-real-estate/the-canadian-rich-are-getting-richer-thanks-to-their-houses

Highest Sales on Record for the Month of April. Price Growth Will Remain Strong.

Yesterday, May 5, 2015, Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 11,303 sales in April 2015.  This was the highest sales result on record for the month of April and represented a 17 per cent increase in comparison to April 2014.  While sales increased strongly on a year-over-year basis, new listings were up over the same period by a more moderate five per cent.

“The record April result clearly points to the fact that a growing number of GTA households view ownership housing as a high quality long-term investment.  This is evidenced by the strong sales growth we have experienced in Toronto and surrounding regions for all major home types.  First-time buyers and existing homeowners remain very active in today’s market,” said Mr. Etherington.

The overall average selling price, which accounts for all homes reported sold by GTA REALTORS® in April 2015, was up by 10 per cent year-over-year to $635,932. 

Price growth in the GTA was strongest for low-rise home types.  However, the better supplied condominium apartment segment also remained healthy with price growth above the rate of inflation.

“Demand for ownership housing was very high relative to the number of homes available for sale in April.  This situation is not expected to change markedly as we move through the remainder of 2015.  Until we experience a sustained period in which listings grow at a faster pace than sales, annual rates of home price growth will remain strong,” said Jason Mercer, TREB’s Director of Market Analysis.

March Transactions Show Avg. Selling Price Increased by 10%

Toronto Real Estate Board President Paul Etherington announced on April 7, 2015 that Greater Toronto Area REALTORS® reported 8,940 sales in March 2015.  This result represented an 11 per cent increase compared to March 2014.  Sales were up for most major home types, both in the City of Toronto and the surrounding regions.  New listings were also up, but by a lesser 5.5 per cent, indicating tighter market conditions.

“Home sales increased compared to last year as the cost of home ownership remained affordable, with lower interest rates going a long way to mitigate the effect of rising home prices.  However, a substantial amount of pent-up demand remains in place, especially as it relates to low-rise market segments.  This suggests that strong competition between buyers, which has fuelled strong price growth so far this year, will continue to be experienced throughout the spring,” said Mr. Etherington.

In March, the average selling price for all reported transactions was $613,933 – up 10 per cent year-over-year. Average price growth was strongest for detached homes in the City of Toronto, at 15.9 per cent.

"It is clear that seller's market conditions in many parts of the GTA are driving price growth. 

Toronto (416) Average Prices:

Detached Homes   -  $1,042,405.00

Semi-Detached     -  $723,167.00

Townhouse           -  $546,993.00

Condo Apartment  -  $398,337.00

http://www.torontorealestateboard.com/market_news/release_market_updates/news.htm

Cold February, Hot Market Figures, Sales up 11.3% year-over-year increase compared to February 2014, Average Detached Selling price above $1 million

On March 4th Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 6,338 home sales through the TorontoMLS system in February 2015.  This result represented a substantial 11.3 per cent year-over-year increase compared to February 2014.  Large annual increases in transactions were noted for most major home types, in the City of Toronto and surrounding GTA regions. 

“Even with the record low temperatures last month, we still saw an increase in the number of people purchasing homes in the GTA.  This speaks to the importance households place on home ownership and the fact that buyers continue to view ownership housing as a quality long-term investment in which they can live,” said Mr. Etherington. 

The overall supply of homes for sale, as measured by the count of active listings at the end of February 2015, was down by 8.7% compared to the same count in February 2014.  This means that market conditions became tighter, leading to more competition between buyers. 

The overall average selling price for February 2015 home sales was $596,163 – up by 7.8% compared to the average for February 2014.  Driving this increase was the detached market segment.  In the City of Toronto, the average detached selling price moved above $1 million dollars for the first time in a calendar month.  

“The strong year-over-year price growth we experienced in February points to the robust demand for ownership housing in the GTA, coupled with a constrained supply of homes for sale in some market segments, especially where low-rise home types like singles, semis and townhouses are concerned,” said Jason Mercer, TREB’s Director of Market Analysis.