Sales Keep Falling But Prices Keep Going Up

Greater Toronto Area REALTORS® reported 6,896 transactions through the TorontoMLS system in October 2012 – a decrease of 7.1 per cent compared to October 2011, Toronto Real Estate Board made public today.There were two more business days in October 2012 versus October 2011.

“Sales have decreased in the second half of this year compared to 2011, especially since the onset of stricter mortgage lending guidelines at the beginning of July.The prospect of higher monthly mortgage payments due to the reduced maximum amortization period has prompted some households to delay their home purchase,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for October transactions was $503,479 – up 6.2 per cent compared to October 2011.The MLS® Home Price Index composite benchmark price, which allows for an apples-to-apples comparison in terms of home attributes, was up by 5.1 per cent.

“We continue to see price increases well above the rate of inflation.Active listings have remained low from a historic perspective, so substantial competition between buyers still exists, especially for low-rise homes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“It should be noted, however, that the annual rate of price increase has been edging lower over the past few months as the market has gradually become better supplied,” continued Mercer.

For more info, please check out TREB's Website: http://www.torontorealestateboard.com/market_news/release_market_updates/news2012/nr_market_watch_1012.htm

September Sales Show Values Went Up 8.5% Despite Low Number of Transactions

Today, October 3, 2012, the Toronto Real Estate Board (TREB) made public that Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the TorontoMLS system in September 2012. The average selling price for these transactions was $503,662, representing an increase of more than 8.5 per cent compared to last year.
The number of transactions was down by 21 per cent in comparison to September 2011. However, it is important to note that there were two fewer working days in September 2012 compared to September 2011. The majority of transactions are entered on working days. On a per working day basis, sales were down by 12.5 per cent year-over-year.
“While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing,” said Toronto Real Estate Board President Ann Hannah.
September average selling prices were up compared to last year for all major home types. Price growth was strongest in the City of Toronto, including condominium apartments with eight per cent year-over-year growth. All benchmark home types included in the MLS® Home Price Index (MLS® HPI) experienced year-over-year price increases, with substantially stronger increases for low-rise home types.
“Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached houses and town homes,” said TREB’s Senior Manager of Market Analysis, Jason Mercer.

August Resale Market Figures

Greater Toronto Area (GTA) REALTORS® reported, according to TREB, 6,418 sales through the TorontoMLS system in August 2012, representing a year-over-decline of almost 12.5% compared to 7,330 sales reported in August 2011. The number of new listings reported in August was down by 5.5% compared to the same period in 2011.

“Residential transactions were down in August compared to last year. Stricter mortgage lending guidelines, which came into effect in July, arguably played a role. In the City of Toronto, the additional impact of relatively higher home prices coupled with the upfront cost associated with the City’s Land Transfer Tax led to a stronger annual decline in sales compared to the rest of the GTA,” said Toronto Real Estate Board (TREB) President Ann Hannah.
The average selling price for August 2012 transactions was $479,095 – up by almost 6.5% compared to August 2011. The annual rate of price growth was driven by the low-rise home segment in the City of Toronto, including single-detached homes with an average annual price increase of 15%. The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 6.3 per cent year-over-year.
“While sales were down year-over-year in the GTA, so too were new listings. As a result, market conditions remained quite tight with substantial competition between buyers in the low-rise market segment,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The trends for sales and new listings are moving somewhat in synch, suggesting that the relationship between sales and listings will continue to promote price growth moving forward.”

Your Taxe Dollars are used to Pay Banks when Borrowers Default

Banks in Canada have, lately, been very strict about qualifying and approving potential home buyers for Mortgage.
On 29 of August, "The Globe and Mail" published an article saying that "Canada Mortgage and Housing Corp. saw profits at its mortgage insurance business fall sharply in the second quarter largely due to a jump in losses from claims.
The rise in claims losses suggests that an increasing number of borrowers whose mortgages were insured by CMHC have been unable to make their payments and have lost their homes. Mortgage insurance pays the bank back when a borrower defaults.
Amid growing concern about taxpayers’ exposure to mortgage defaults, Ottawa has been taking steps to curb CMHC’s growth and has placed the housing agency under the watch of the country’s banking and insurance regulator.
The amount of insurance that CMHC has in force crept up to $576-billion at the end of June, closing in on the $600-billion limit that Ottawa is now enforcing on the Crown corporation. To keep the amount in check, CMHC has dramatically cut the amount of portfolio insurance that it is offering to banks.
And it said that its future sales of mortgage insurance will continue to be offset as each year Canadians pay off about $60-billion of mortgages that it has already insured.
CMHC said that it has been spending more money on so-called “work-outs,” in which the mortgage insurer and banks work with struggling borrowers to find a solution – such as deferred payments – to keep them in their home".
To read more go to:
Jump in Claims pinches CMHC's Insurance Business

First Time Buyers and Retirees Will Continue to Prop Up Demand for Condos

According to an article published today in the "Financial Post", A new condo report suggests first-time buyers, retirees and population growth will continue to fuel demand and price growth for the compact living spaces over the next few years.
The study by Genworth Canada found that average condo resale prices are expected to rise next year in seven of the eight metropolitan centres studied.
Prices in Toronto are projected to jump 2.5% to $312,352.
For those seeking to own a home affordably in urban centres, condos remain a good option.
The highest increase however, is expected to be in Edmonton where prices could rise 3.2%.
Vancouver is the only city where condo prices are expected to drop, by 2% to $348,152.
The report stands in contrast to warnings from economists and officials that the condo market in some hot markets is reaching bubble territory that could soon burst.
The central bank noted certain segments of the housing market that have a persistent oversupply — such as condos in Toronto — face a higher risk of a price correction.
Genworth — which earns revenue from selling mortgage insurance — notes that rising prices for single-detached homes are driving first-time buyers to condos, but retirees also continue to prop up demand.
It suggests that the population is expected to grow in all eight cities studied over the next few years, while employment growth and low interest rates should also support the market.

Home Sales Down in June. Land Transfer Tax is a Heavy Burden in Toronto Area

According to Toronto Real Estate Board (Treb) at the begining of July Greater Toronto REALTORS® reported 9,422 home sales through the TorontoMLS system in June 2012. The number of transactions was down by 5.4% in comparison to June 2011. The year-over-year decline was largest in the City of Toronto, where sales were down by 13% compared to June 2011. Sales in the rest of the Toronto Real Estate Board (TREB) market area were comparable to a year ago.
“Buyers continue to face the substantial upfront cost associated with the City of Toronto’s unfair Land Transfer Tax,” said TREB President Ann Hannah. “Recent polling by TREB suggests that many households are considering home purchases outside of the City of Toronto to avoid paying the Land Transfer Tax. This goes a long way in explaining the disproportionate decline in sales in the City versus surrounding regions.”
The average selling price in June was $508,622 – up by 7.3% compared to June 2011. The mortgage payment associated with the average priced home in June, assuming five per cent down and a five-year fixed rate mortgage amortized over 25 years, would account for approximately 35% of the average household’s income in the GTA after adding property tax and utility payments.
“According to new mortgage lending guidelines set out by Finance Minister Jim Flaherty, the GTA housing market remains affordable. The share of the average household’s income going toward major home ownership payments for the average priced home remains below the 39 per cent ceiling recently announced by Mr. Flaherty,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Federal Government Announced New Mortgage Rules

During the second half of the Month of June the Minister of Finance, Jim Flaherty, announced four measures for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent:

1. Reduce the maximum amortization period to 25 years from 30 years.
2. Lower the maximum amount Canadians can borrow when refinancing to 80 per cent from 85 per cent of the value of their homes.
3. Fix the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent.
4. Limit the availability of government-backed insured mortgages to homes with a purchase price of less than $1 million.

These new rules will take effect on July 9, 2012.

Employment Rate Unchanged

Following two months of large gains, employment was unchanged in May, and the unemployment rate remained at 7.3%.
Compared with 12 months earlier, employment increased 1.2% or 203,000. Virtually all of this growth was in full-time work, up 192,000 (+1.4%).
www.statcan.gc.ca

Interest Rates Stay Low

According to "The Financial Post" (financialpost.com), Once again the Bank of Canada maintained interest rates at 1% last Tuesday, June 5, staying the course despite confirming global financial turbulence is creeping ever closer to our shores, while housing and household debt remain domestic risks.
The Bank of Canada has now held rates at a stimulus-level 1% since September 2010.

Federal Government putting Pressure to Cool down the Market

Cautious about getting too much in Debt
Today I was listening to a Real Estate Radio Show on 640AM and a buyer who found a Cottage property somewhere in Ontario said that he was having trouble finding mortgage although he had a 25% downpayment.
This doesn't come as a surprise to me. I've noticed that the Federal Government is currently putting lots of pressure on Financial Institutions (Lenders) so they thoroughly scrutinize everyone before approving any application for Mortgage.
Any potential home or condo buyer must be a real buyer: which means, there must be a very good credit history, solid savings for downpayment (25% or more of the purchase price), real job(s) paying real salary(ies) that should be clearly enough to pay for the Land Transfer Tax, Mortgage, Utility Bills (Hydro, water,...), Maintenance Fee in case of Condos, Property Taxes, etc.
According to some Mortgage Brokers from different Lenders I had the opportunity to meet and talk to recently, mortgage applications that would be easily approved a year or two ago, are now denied.
And even after approving the mortgage, the Lender, before the closing date, sends an Appraiser to make sure the Buyer(s) didn't over pay for the property.
Knowing that most of us don't have any savings in case things go South, the Government obviously doesn't want us to get into much (unsustainable) Debt because, God Forbid, the interest rates go up or we loose our job(s) we can't make the payments any more. The direct consequence, is what we see is happening with the American Real Estate Market: people leave the properties and if the lenders can recuperate their investment by Selling the property(ies), the government has to pay for their loses.
So these Government measures are purposely cooling and slowing down certain areas in Great Toronto Area and certain segments of the market such as the Condo Market.
I believe interest rates will not go up any time soon. At least not before 2013 since the economy is not growing as fast as we'd like it to. We just learned this week that General Motors Canada (GM) in Oshawa, Ontario Assembly Plant will next year (2013) let go  2000 jobs to the USA (Detroit and Tenesse).

Luxury Homes Sales Across Canada

According to Toronto "Metro" Daily Newspaper the Re/max real-estate sales organization says demand for high-priced housing was strong in most Canadian markets in the first months of this year, with records set in 10 of 16 markets it tracks.
Vancouver was one of the six markets where the luxury market has cooled off after an especially hot period last year, but demand in Toronto remained high.
The organization says the price of luxury housing depends on the market, from a low of $500,000 in mid-sized cities such as St. John's and Halifax to a high of $2 million in the Vancouver area.
In the case of Regina, which had the biggest increase in luxury sales this year, there was 56% more sales of at least $500,000. In Canada's most expensive market, Vancouver, there was a 31% decline from last year's peak with 393 luxury homes sold in the first quarter.
By contrast, Toronto's market has been hotter than last year, with 412 homes sold for at least $1.5 million each - a 49% increase from early 2011.

Canada's Job Growth Soars Above Forecasts

For the second consecutive month, Canada’s economy has put a surprisingly large number of people to work, and again most of those were in full-time positions.
Statistics Canada said Friday that while 58,200 more people found jobs last month, the unemployment rate edged up to 7.3% from 7.2% in March as others entered the labour market in search of work.
The vast majority of the new jobs in April were in the private sector.
Friday’s numbers add to the momentum from March, when a massive 82,300 jobs were created.
“This is the strongest back-to-month monthly job gain since 1981,” Scotia Capital in a note to investors.
Full-time employment was up by 43,900 positions in April, while part-time hiring totaled 14,300. In March, there were 70,000 new full-time positions and 12,400 part-time jobs.
Compared to a year earlier, employment is up 1.2%, or 214,000 positions. All of the growth the past 12 month was in full-time positions.
The huge gains in March and April came after fourth months of little change in employment rolls.
“The employment gain in April was primarily in the goods sector, with increases in construction, manufacturing, natural resources and agriculture,” Statistics Canada said.

According to Canadian newspaper "Financial Post", Friday’s (April 11, 2012) stronger than-expected job numbers could help push Canada’s GDP to 3% in the second quarter, a development that could spur the Bank of Canada to begin hiking rates this summer, one economist said Friday.
CIBC chief economist Avery Shenfeld said that such strong numbers could have the Bank of Canada rethinking on when to hike. Mr. Shenfeld had originally expected the Bank to leave interest rates unchanged this year, but he admits that the strong data has him weighing the possbility now.
http://business.financialpost.com/2012/05/11/canadas-job-growth-soars-above-forecasts/

Home Sales in April 18% Higher than in 2011

Great Toronto REALTORS® reported 10,350 transactions through the TorontoMLS System in April 2012: 3,925 Sales in Toronto (416 Area) and 6,425 Sales in Rest of GTA (905 Areas).

This level of sales was 18% 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% 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 4%.
“Monthly mortgage payments remain affordable for home buyers in the Greater Toronto Area.While interest rates are generally expected to increase over the next two years, the extent and timing of rate hikes has been thrown into question by slower than expected economic growth in the first quarter of this year.On net, borrowing costs are expected to remain a positive factor influencing home sales through 2012,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

http://www.torontorealestateboard.com/market_news/release_market_updates/news2012/nr_market_watch_0412.htm

Competition Bureau Threatens to Dismantle Privacy Safeguards of Home Sales 75% of Ontarians Opposed

On March 14, 2012, the Toronto Real Estate Board (TREB) released the results of an Angus Reid Vision Critical poll. The vast majority of Ontarians clearly expressed their opposition to abandoning the privacy safeguards of the current MLS® System.

When asked about the consequences of the Competition Bureau’s actions, Ontarians expressed concern:

• 75% of Ontarians believe that personal information such as name and final sale price should be kept confidential by REALTOR® professionals. Commissioner Aitken wants to release this information.
• 70% of homeowners do not want their personal contact information released to the public. Commissioner Aitken wants to release this information.
• 67% of Ontarians oppose any measure to make personal contact information such as name and address available to others who are not subject to a professional code of conduct. Commissioner Aitken wants to release this information.

“The results of this poll are overwhelming,” said TREB President Richard Silver.” TREB strongly believes that REALTORS® have an obligation to protect consumers’ personal information. That’s why TREB and REALTOR® Members are fighting for the privacy rights of consumers.”

The Competition Bureau is taking action that would force TREB to abandon the safeguards in the MLS® System and make personal information publicly available on the Internet, threatening the privacy and safety of GTA consumers.

If the Competition Commissioner gets her way, consumers’ private information, which is currently protected on our secure MLS® System, would become freely available on the Internet, including:

• Seller’s name and address
• Property floor plans
• Sensitive Property access information
• Negotiated sale price
• Mortgage details

“Ontarians clearly oppose what Commissioner Aitken is trying to do. They’ve said they want their personal and private information kept confidential,” said Von Palmer, Chief Government and Public Affairs Officer and Chief Privacy Officer for TREB.

If Commissioner Aitken gets her way, Ontarians won’t. Privacy matters. TREB is standing up for GTA consumers. Visit www.ProtectYourPrivacy.ca for more information.

Canada Housing Prices Won't Crash: Poll

It was published in the Financial Post that Canada’s government will make it tougher for many homebuyers to get mortgages this year as it grapples with an overheated property market, according to analysts in a Reuters poll, who also ruled out the prospect that prices could suddenly crash.Ten of 14 economists and strategists surveyed last week in Reuters’ first poll on the Canadian housing sector answered “yes” when asked if they thought Ottawa would tighten mortgage rules within the next 12 months.
They expect home prices to climb just 0.1% in the year to December 2012, and the same in 2013. That is down from a 0.9% year-on-year increase in December 2011.
If Finance Minister Jim Flaherty tightens requirements for government-backed insured mortgages it would be his fourth intervention in the real estate market since 2008.
Flaherty could raise the minimum down payment to buy a home from the current 5% or reduce the maximum amortization period from 30 years.
Any move would likely come before the prime spring real estate season, analysts said. “Sometime between now and the next budget,” said Benoit Durocher, senior economist at Desjardins in Montreal, on the timing of such a move.
The budget is expected in late March.
The poll respondents see the housing market as moderately overvalued, particularly in Toronto and Vancouver.
“There is some genuine concern that the housing market and households have been overstretched,” said Mazen Issa, economist at TD Securities.
“But in the absence of several triggers for a housing market decline, which are not likely to be forthcoming until at least the middle of next year, the underlying theme is of gradual moderation,” he said.
Possible triggers would be a rise in mortgage rates or a sharp rise in unemployment.
Household debt levels are approaching those in the United States before the 2008-09 housing meltdown there. Canada’s debt-to-income ratio hit a record 153% last year and is expected to rise.
The Bank of Canada, which has fanned the flames by holding its benchmark lending rate at 1% for an unprecedented 17 months, has made it clear that rates are likely to stay unchanged for at least this year.
Read more on this:
http://business.financialpost.com/2012/02/21/canada-housing-prices-wont-crash-poll/#more-144215

January Shows Toronto Real Estate Market Continues Strong

Greater Toronto REALTORS® reported 4,567 sales through the TorontoMLS® system in January 2012. This number was 8.8 per cent higher than the 4,199 sales reported in January 2011. Sales growth was strongest for low-rise home types in the regions surrounding the City of Toronto.

“A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership,” said Toronto Real Estate Board President Richard Silver. “The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum,” continued Silver.

The average selling price for January 2012 transactions was $463,534 – up by almost 9 per cent compared to January 2011.
“Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year. Strong price growth is expected to attract more listings. A better supplied market should result in a slower rate of price growth, especially in the second half of 2012,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. http://www.torontorealestateboard.com/market_news/release_market_updates/news2012/nr_market_watch_0112.htm

Foreign acquisition of Canadian debt securities strengthens

According to Statistics Canada, Foreign investment in all types of Canadian securities strengthened in November with non-residents adding $15.0 billion to their holdings, the largest such inflow of funds since May. Canadian investors purchased $2.8 billion of foreign securities, evenly split between stocks and bonds. For the 11 months ending in November, foreign investment in Canadian securities was $88.2 billion compared with $14.7 billion of Canadian investment in foreign securities.
For information, click the link below:
http://www.statcan.gc.ca/daily-quotidien/120117/dq120117a-eng.htm

Hot Market is Cooling!!?

The Canadian government is watching the housing market closely and is ready to intervene if needed, but is not about to do so now, Finance Minister Jim Flaherty said today, Tuesday, noting he saw indications of softening in the market.He was speaking to reporters after the Bank of Canada said that very favourable credit conditions were expected to buttress housing activity, and that Canada’s ratio of household debt to income was expected to rise further.
Asked if he had expressed concern with the banks about record-low mortgage rates, he said: “I have frequent discussions with the bank leaders including some of them yesterday in Toronto.”
Data this week showed existing homes sales rose only slightly in Canada last month, while the average sale price declined, offering further evidence the once hot market is cooling.
Canada’s housing sector, which did not experience the subprime mortgage boom and bust seen in the United States, played a key role in lifting the economy out of recession as ultra-low interest rates drove sales and prices higher.
But policymakers have voiced fears the market’s post-recession boom, combined with a long run of low lending rates, could create an asset bubble. The Canadian government tightened mortgage rules several times to cool the market.
Cautioning consumers, Mr. Flaherty reiterated on Tuesday that Canadians must not assume interest rates will remain low for a long time.

Financial Post, Tuesday, January17, 2012.

November Resale Housing Market Figures

Greater Toronto REALTORS® reported 7,092 residential transactions through the TorontoMLS® system in November – up 11% in comparison to November 2010. At the same time, the number of new listings was up by 14% in comparison to last year.
“We have seen strong annual sales growth through the 2011 fall market. The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area,” said Toronto Real Estate Board (TREB) President Richard Silver. “The market has also become better supplied, with annual new listings growth outstripping that of sales. As this trend continues into 2012, we will see more balanced market conditions.”
The average price for November transactions was $480,421, representing an increase of almost 10 per cent in comparison to $437,494 in November 2010.
“Despite strong price growth this year, the housing market remains affordable in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The correct method of assessing affordability is to consider the share of the average household’s income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace.”

Strong Condo Sales Growth in Q3 2011

On October 24, 2011 -- Greater Toronto REALTORS® reported 5,770 condominium apartment transactions through the TorontoMLS® system in the third quarter of 2011, representing a 24% increase over the same period in 2010. The average selling price increased by almost 9% to $333,352.
"Condominium apartments have accounted for about one-quarter of total existing home sales in the GTA this year. This share is expected to increase moving forward, as new home sales and construction has become increasingly driven by high-rise construction," said Toronto Real Estate Board President Richard Silver.

In line with new home sales and construction trends over the last few years, condominium apartment completions have been high so far in 2011. When condo projects reach the completion stage, investors and end users whose housing needs have changed often list their units for sale or rent.
"The average annual rate of price growth remained strong in the third quarter, despite the upward trend in completions and active listings. This is because the pace of sales remained brisk, keeping sellers' market conditions in place," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis.

Strong Price Growth "Thanks" to Low Interest rates. Average Selling Price was up 8% in October

As always at the beginning of each month, Toronto Real Estate Board (TREB) provides us with the most up-to- date information regarding Real Estate Market activity.--
Thus, Greater Toronto REALTORS® reported 7,642 home sales through the TorontoMLS® in October 2011. This represented an increase of 17.5% compared to the 6,504 transactions reported in October 2010.

Monthly sales data follow a recurring seasonal trend that should be removed before comparing monthly results within the same year. After adjusting for seasonality, the annualized rate of sales for October was 97,100, which was above the average of 90,700 for the first three quarters of 2011.
“The pace of October resale home transactions remained brisk in the GTA. This bodes well for a strong finish to 2011,” said Toronto Real Estate Board President Richard Silver. “Home buyers who found it difficult to make a deal in the spring and summer due to a shortage of listings have benefitted from increased supply in the fall.”
The average selling price through the TorontoMLS® in October was $478,137 – up eight per cent compared to October 2010.
“Sellers’ market conditions remain in place in many parts of the GTA.  The result has been above-average annual rates of price growth for most home types,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.  “Thanks to low interest rates, strong price growth has not substantially changed the positive affordability picture in the City of Toronto and surrounding regions.”

Average selling price continued to grow by close to 10% - September Resale Housing Figures

Greater Toronto REALTORS® reported 7,658 transactions through the TorontoMLS® system in September – a 25% increase over September 2010. Sales during the first three quarters of 2011 amounted to 70,588, representing a 2.6 per cent increase compared to the first nine months of 2010.
“We have experienced strong growth in sales so far this year, with a much more active summer compared to 2010. However, while sales have been strong, we have continued to experience a shortage of listings, resulting in more competition between home buyers,” said Toronto Real Estate Board President Richard Silver. “Over the past few months, the listing situation has started to improve, so we expect home buyers will have more homes to choose from in the months ahead.”
With annual growth in sales (+25 per cent) outstripping annual growth in new listings (+15 per cent) in September, market conditions became tighter and the average selling price continued to grow by close to 10 per cent on a year-over-year basis.
“Strong price growth through the first nine months of the year was mitigated to a great degree by low interest rates and rising incomes,” said the Toronto Real Estate Board’s Senior Manager of Market Analysis Jason Mercer. “As buyers continue to take advantage of the affordable home ownership options in the GTA, we remain on pace for the second best year for sales under the current TREB market area.”

Canadian Household Debt worries IMF

NEW YORK – The Vancouver housing market is attracting unusually strong demand but Canada as a whole does not face a housing bubble that requires government action, Finance Minister Jim Flaherty said on Wednesday.

Mr. Flaherty and Bank of Canada Governor Mark Carney have paid close attention to Vancouver housing prices, and they have warned Canadians not to take on so much debt that they will not be able to service it when interest rates rise.
Asked at a news conference in New York what it would take for Canada to act again to cool the market, he said: “It will take clear evidence of a bubble in the housing market in Canada, which we have not seen.”
Given low interest rates, the level of housing demand in Canada is not surprising, Mr. Flaherty said. But he added: “We have seen in the past year some softening in the Canadian housing market, in part due to the tightening of the insured mortgage market rules that we did earlier this year… That’s an appropriate result from that tightening.”
The International Monetary Fund said in a report on Wednesday that private credit remains strong in Canada and that the government might need to consider further measures to prevent households from taking on too much debt.
“Developments on the housing front require increased vigilance, and consideration may need to be given to additional prudential measures to prevent a further buildup in household debt,” the lender said in its Western Hemisphere outlook.
http://business.financialpost.com/2011/10/05/no-housing-bubble-flaherty/

Resale Housing Market to Stabilize by 2012

Fewer uyers and more listings will result in a more balanced resale housing market in Ontario over the next year, according to the 3rd quarter Housing Market Outlook by Canada Mortgage and Housing Corporation (CMHC).
... the demand for new and existing homes in the province is expected to drop slightly for the remainder of this year before stabilizing into 2012. Although lower demand by first-time buyers and higher mortgage carrying costs are expected to dampen housing activity, higher employment and income levels are projected to offset those factores and provide support for housing into 2012.

Hot Summer Heated Up Toronto Real Estate Market in August

According to Toronto Real Estate Board (TREB) 7,542 Sales were reported by Greater Toronto REALTORS® through the TorontoMLS® system in August - a 24% increase over 6,083 sales in August 2010. New listings, at 12,509, were up by 20 per cent compared to August 2010. Market conditions remained tight as sales growth outstripped growth in new listings."Home sales in the GTA have stood up well despite a less certain economic outlook," said TREB President Richard Silver. "Home sales will be bolstered by low mortgage rates moving forward. The Bank of Canada is expected to be on the sidelines until the second half of 2012 or even into 2013. However, home ownership affordability in the City of Toronto could be further improved with the removal of the City's land transfer tax. This tax currently represents a substantial upfront cost for home buyers."
With market conditions remaining tight in the GTA, the average selling price continued to grow strongly in August – up by more than 10% year-over-year to $451,663.
"We remain on pace for the second best year on record for sales. Approximately 90,000 transactions are expected by the end of December," said TREB's Senior Manager of Market Analysis Jason Mercer. "Major home ownership costs, including the average monthly mortgage payment, remain affordable despite the strong price growth experienced so far this year."

Labour Market - Employment Numbers for June 2011

Employment rose for the third consecutive month, up 28,000 in June, according to Statistics Canada at the beginning of July, 2011.
The unemployment rate was unchanged at 7.4% as the number of people participating in the labour market increased. Over the past 12 months, employment has grown by 238,000(+1.4%).
Employment was up in transportation and warehousing in June, while it fell in professional, scientific and technical services. There was little change in the other industries.
Increases in the number of employees working in the public and private sectors were tempered by a decline in the number of self-employed. Over the past 12 months, public sector employment rose by 2.5%, private sector employment was up 1.5%, while the number of self-employed was little changed.
Ontario, Alberta and Nova Scotia posted employment gains in June, while there were declines in Quebec as well as Newfoundland and Labrador. Employment was little changed in the other provinces.

Third Best June Ever with a 9.5% Increase on Average Price due to Tight Supply

Greater Toronto REALTORS® reported 10,230 home sales through the TorontoMLS® system in June 2011 – up 21% compared to June 2010. This number represented the third best June result on record behind 2007 and 2009. The number of transactions during the first 6 months of 2011 amounted to 48,189 – down by 4.5% compared to the first half of 2010.
“The strong June result capped off an interesting first half of 2011,” said Toronto Real Estate Board President Richard Silver. “The pace of sales was a bit sluggish at the beginning of the year, but rebounded in May and June. Because of the positive affordability picture, home buyers remained confident in their ability to purchase and pay for a home over the long term.”
The average price for June transactions was $476,371 – a 9.5% increase over June 2010. Through the first 6 months of the year, the average selling price was $467,169 – almost an 8% increase compared to the same period in 2010.
“While sales have been strong, we would be on track for a record number of transactions in 2011 if not for the decline in listings so far this year,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “Tight supply meant more competition between home buyers and an accelerating annual rate of price growth in the second quarter.”
“Home owners will likely react to the stronger price growth by listing their homes in greater numbers. A better supplied market would result in more moderate price increases,” continued Mercer.

Second Best "May" ever. Sales were up 6% & Average Price 9% up.

Greater Toronto REALTORS® reported 10,046 sales in May 2011 – up 6% compared to May 2010. This result was the second best on record for May under the current
Toronto Real Estate Board service area. The number of new listings in May, at 16,076, was down 15% compared to last year.
“Positive economic news and low borrowing costs led to strong sales through the first five months of the year, including the increase in May,” said Toronto Real Estate Board President Bill Johnston. “At the same time, the market has become much tighter compared to last year, due to a substantial dip in new listings.”
Homes were on the market for an average of 23 days and sold for an average price of $485,520.00 – up 9% compared to $446,593 in May 2010. The strongest rate of price growth was experienced for single-detached homes sold in the City of Toronto.
“We have seen clear-cut seller’s market conditions emerge over the past two to three months,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis. “The robust price appreciation that we have seen will hopefully prompt more households to list, resulting in a more balanced market later this year,”continued Mercer

Average April selling price growing by 9%

Greater Toronto REALTORS® reported 9,041 existing home sales through the TorontoMLS® system in April 2011. This result was down 17 per cent compared April 2010 when sales spiked to a new record of 10,898. While off last year's record result, April 2011 sales were in line with the average April sales level reported over the previous five years.
Existing home sales have been strong from a historic perspective through the first four months of 2011. Expect the pace of sales to remain robust through the spring, as the economy expands and home buyers continue to benefit from affordable home ownership opportunities.
Market conditions tightened markedly over the last year. April 2011 sales accounted for 62 per cent of new listings during the month – up substantially from 53 per cent in April 2010. Tighter conditions resulted in the average April selling price growing by 9% annually to $477,407.
"The number of listings has been below expectations so far this year. Increased competition between home buyers has led to an accelerating annual rate of price growth," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The strong price growth experienced in April should result in more listings and more balanced market conditions."

Unemployment Rate According to Statscan

Employment edged up in February (+15,000), bringing total gains over the past three months to 115,000. The unemployment rate remained unchanged at 7.8%. Over the past 12months, employment has risen by 1.9% (+322,000).
Part-time employment rose by 39,000 in February, partly offset by a decline in full-time work. Over the past 12 months, part-time employment has grown by 5.1% (+166,000), while full time increased by 1.1% (+156,000).

Lower Sales but Higher Average Price

In February, Greater Toronto REALTORS® reported 6,266 transactions through the TorontoMLS® system. This result was 14% lower than the record sales reported in February 2010.
While not representing a record, February 2011 sales were 50% higher than the number reported in February 2009 during the recession and slightly higher than the average February sales over the previous ten years.
"Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong," said Toronto Real Estate Board (TREB) President Bill Johnston.
The average selling price for February 2011 transactions was $454,423, which was more than 5% higher than the average selling price reported in February 2010.
"Market conditions remain quite tight in the GTA. There is enough competition between home buyers to promote continued price growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.

Toronto Real Estate Sales Down in January but Average Price Continues to Grow

Greater Toronto REALTORS® reported 4,337 transactions through the TorontoMLS® system in January 2011, says Toronto Real Estate Board. This result was 13 per cent lower than the record result reported in January 2010.
"While off the record pace experienced a year ago, the Great Toronto Area resale market has started the year on a solid footing. Home buyers in Toronto and surrounding areas continue to benefit from a diversity of housing types for sale at many different price points," said TREB President Bill Johnston.

The average selling price for January 2011 sales was $427,037, representing an increase of over four per cent compared to the average of $409,058 reported in January 2010.
"The average selling price is expected to grow at a moderate pace in 2011. Growth rates in the three to five per cent range will be sustainable from an affordability perspective," said Jason Mercer, TREB's Senior Manager of Market Analysis.
The Number of Sales in Toronto (416) was 1,718 and the rest of GTA (905) was 2,619.
Median Price
In January, the median price was $360,000, from the $350,000 recorded during January of 2010.

Three new rules for the mortgage industry that will come into effect March 18

On January 17, 2011, Finance Minister Jim Flaherty announced new rules for Canadian mortgages that will "protect the stability of the economy."
Flaherty's announcement comes on the heels of a recent warning from the Bank of Canada that Canadians' domestic debt burden is the highest on record.
The announcement included three new rules for the mortgage industry that will come into effect March 18:
Mortgage amortization periods will be reduced from 35 years to 30 years.
The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90 per cent to 85 per cent of the value of their homes.
The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit.
It is the third time in three years that Flaherty has tightened credit rules while interest rates remain historically low.

The new restrictions are intended to ensure that Canadians don't slip into unmanageable debt, which could throw the economic recovery off the rails.
Flaherty targeted home-equity loans and lines of credit because some Canadians were using the money on consumer goods rather than to build equity into their homes, he said.
"They are used to buy boats and cars and big-screen TVs, and that's not the business mortgage insurance was designed for," he said. "Our measures will help improve the financial situation of households in Canada."
The Bank of Canada had announced earlier that Canadians' domestic debt burdens had hit the highest levels on record. The bank said the ratio of household debt to disposable income has reached 148 per cent -- which is higher than in the United States.
The International Monetary Fund also recently warned that household debt is the number one risk to the Canadian economy. Canadian household debt is now at $1.4 trillion, while mortgage delay payments have increased by 50 per cent.

New Government Rules to Hit Condo Buyers

According to "National Post", The federal government's efforts to get tough on borrowing are now focused on the condominium sector, with new rules in the works to make it tougher to qualify for a loan on a high-rise apartment. Sources say rules now being discussed would add 100% of condominium fees to the list of expenses that is measured against income to decide whether a buyer can afford a mortgage. Currently, only 50% of the fee is considered. The move has the potential to squeeze thousands of consumers out of the market.
The proposal is said to be part of a series of new rules the government is "seriously considering."
Brad Lamb, a Toronto real estate broker and developer, said the practice would discriminate against condominium owners. "When you buy a house, you don't put any future maintenance costs [in your debt calculation]," said Mr. Lamb. "All it is a knee-jerk reaction by idiot bankers pressuring idiot politicians that don't understand the nature of the condominium market in Canada. What is driving the condominium market in Ottawa, Vancouver, Toronto and Montreal ... is investors. This won't affect them. This just attacks the lowly first-time buyer."

Potential Changes to Canada's Mortgage Financing Rules

The Canadian Real Estate Association (CREA) has launched a REALTOR® Call for Action on potential changes to Canada’s mortgage financing rules.
According to CREA, there is strong speculation the federal government may further tighten mortgage financing rules; in particular, raising down payment requirements and shortening amortization periods. This would make it more difficult for some Canadian families to purchase a home and could have a detrimental impact on existing homeowners and the economy. Finance Minister Jim Flaherty said he is monitoring the situation, and will take action if needed.
In a December letter to the Minister of Finance, CREA’s CEO Pierre Beauchamp raised concerns about possible changes to mortgage financing rules.

Expect the average selling price to grow at or below five per cent in 2011

Toronto Real Estate Board made public on January 6, 2011 that Greater Toronto REALTORS® reported 4,395 existing home sales for the month of December, bringing the 2010 total to 86,170 – down by 1% compared to 2009.
"Market conditions were anything but uniform in 2010. We went from super-charged sales activity during the first four months of the year, to a marked drop-off in transactions in the summer and then in the fall saw sales climb back to levels that are sustainable over the longer term," said TREB President Bill Johnston."New Federal Government-mandated mortgage lending guidelines, higher borrowing costs and misconceptions about the HST caused a pause in home buying in the summer. As it became clear that the HST was not applicable to the sale price of an existing home and buyers realized that home ownership remained affordable, market conditions improved," continued Johnston.
The average home selling price in 2010 was $431,463 – up 9% in comparison to the 2009 average selling price of $395,460. In December, the average annual rate of price growth was five per cent.
"At the outset of 2010, we were experiencing annual rates of price growth at or near 20 per cent. This was the result of extremely tight market conditions coupled with the fact that we were comparing prices to the trough of the recession at the beginning of 2009," said Jason Mercer, TREB's Senior Manager of Market Analysis. "Balanced market conditions in the second half of 2010 resulted in more moderate home price appreciation," continued Mercer. "Expect the average selling price to grow at or below five per cent in 2011. With this type of growth, mortgage carrying costs for the average priced home in the GTA will remain affordable for a household earning an average income."

Toronto Real Estate Figures for October 2010

The last figures published by Toronto Real Estate Board show that Greater Toronto Realtors reported 6,681 Sales through the Multiple Listing Service (MLS) in October 2010.

This represented a 21% decrease compared to the 8,476 sales recorded in October 2009. Through the first ten months of the year, sales amounted to 75,582 - up 1% compared to the January through October period in 2009.

"The annual change in sales and average selling prices has been quite uniform across the GTA and by property type as the market has balanced out from record levels of sales in the 2nd half of 2009 and first few months of 2010", said TREB President, Bill Johnston.

"The composition of GTA home sales does differ depending on location. Condominium apartments accounted for 42% of total sales in the city of Toronto and almost 60% of sales in TREB's central districts," Johnston continued. "In regions surrounding the city of Toronto, in contrast, low rise home types accounted for almost 90% of transactions."

The average price for October transactions was $443,729 - up 5% compared to the average of $423,559 reported in October 2009. The average selling price through the first nine months of the year was $430,802.

"The average selling price in the GTA has continued to grow relative to 2009 because home ownership has remained affordable," said Jason Mercer, the TREB's Senior Manager of Market Analysis. "A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home."

"The outlook for mortgage rates and income growth over the next year is favorable. The average home selling price could increase moderately next year and remain affordable for the average GTA household," continued Mercer.

October Sales and Average Prices

Toronto (416), 2,751 Sales, Average Price: $491,157

Rest of GTA (905), 3,930 Sales, Average Price: $410,529

Total GTA 6,681 Sales, Avergage Price: $443,729

Resale Homes remain affordable although the level of Sales has been lower

At the beginning of October, Toronto Real Estate Board released its monthly report. And according to it, Greater Toronto REALTORS® reported 6,310 sales through the Multiple Listing Service® (MLS®) in September 2010. This represented a 23% decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up 4% compared to the first three quarters of 2009."The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA," said Toronto Real Estate Board President Bill Johnston.
The average price for September transactions was $427,329– up five per cent compared to the average of $406,877 reported in September 2009. The average selling price through the first nine months of the year was $429,657."Resale homes in the GTA remain affordable," said Jason Mercer, TREB's Senior Manager of Market Analysis."It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability," continued Mercer. "The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lending guidelines. This is why the average home selling price has continued to grow." Median Price in September price was $360,325, from the $347,000 recorded during September of 2009.

Cool Real Estate Market during Summer Months

The"Toronto Star" Business Section of September 4, 2010 says that August was cool, representing for the third month in a row, existing home sales in the Toronto area fell compared with last year.
Confirming, the Toronto Real Estate Board shows the numbers on their website indicating that Greater Toronto REALTORS® reported 6,232 sales through the Multiple Listing Service® (MLS®) in August 2010. This represented a 22% decrease compared to the 8,035 sales recorded during the same period in 2009. We had 2,360 sales in Toronto (416) and 3,872 sales in the GTA area (905). New listings decreased by one per cent year-over-year to 10,488.

We Adjust When the Conditions Change

The tightening of mortgage criteria, the rise in mortgage rates and the introduction of HST increasing the cost of living, are probably the factors that are directly affecting Real Estate Market Sales.
Sales in Toronto dropped 29 per cent in the first two weeks of August compared with the same time last year, according to the Toronto Real Estate Board. The average price edged down 3.5 per cent from the average tally in mid-July. With prices slowly dropping, buying and selling tactics from the recent boom now seem as disposable as flip-flops. What worked for the last few months will not work in upcoming months. As the market shifts, we should understand, adapt, and capitalize. When homeowners won’t reduce their price, their properties might not move. By contrast, people who adapt to changes in the market have had more success.

Real Estate Market Sales Down in July - Market Becomes more Balanced

According to Toronto Real Estate Board, REALTORS® in Toronto reported 6,564 sales in July – a 34% dip from the record 9,967 sales reported in July 2009. New listings, at 10,825, dropped to the lowest level for the month of July since 2002.“The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring,” said Toronto Real Estate Board (TREB) President Bill Johnston.
Total sales through the first seven months of 2010 were up by 12% compared to the same period in 2009.
Notwithstanding the fact that price trends vary at the neighbourhood level in GTA, the average price for July transactions was $420,482, representing a 6% increase over July 2009.
Over the first seven months of 2010, the average selling price was up 12% annually to $432,253. While July sales were down compared to last year, the number of new listings in the market place also fell.
Read More at:
http://www.torontorealestateboard.com/consumer_info/market_news/news2010/pdf/nr_market_watch_0710.pdf

Labour Market getting stronger in June 2010

The most recent report released by Stats Canada shows that employment rose by 93,000 in June, pushing the unemployment rate down 0.2 percentage points to 7.9%. This is the first time the rate has been below the 8% mark since January 2009.
Employment has been on an upward trend since July 2009, increasing by 403,000 (+2.4%). These gains offset nearly all the employment losses observed during the labour market downturn which began in the fall of 2008. The June unemployment rate, however, remains well above the October 2008 rate of 6.2%.
Since July 2009, most of the employment gains have been in full-time work, up 355,000 or 2.6%, while part-time work rose by 1.5%.
Notable employment increases in June were in service industries including retail and wholesale trade; business, building and other support services; health care and social assistance; and other services such as automotive repair and personal care services.
In June, there were continued gains in the number of private sector employees. The number of self-employed workers also increased, while there was little change among public sector employees.
Virtually all of June's employment gains were in Ontario (+60,000) and Quebec (+30,000). At the same time, there were declines in Newfoundland and Labrador and New Brunswick. There was little employment change in all other provinces.

Homes Sales down in June

During last month of June, greater Toronto REALTORS® reported 8,442 sales through theMultiple Listing Service® (MLS®).This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one percent annually. Year-to-date sales through June were up 23 per cent to 50,455compared to the first six months of 2009.“We experienced a record number of existing home sales during the first half of 2010,but these sales were weighted more towards the beginning of the year,” said newly elected Toronto Real Estate Board President Bill Johnston. “The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates.”The average price for June transactions was $435,034.

Home Sales down 9.5% and new mortgage guidelines limit how much people can borrow

The Real Estate market is slowing but different segments are affected differently.
The beginnng of summer time, the raise of interest rates, the new mortgage rules and the implementation of Harmonized Sales Tax are the main reasons affecting the current marketing conditions. An article published yesterday (June 17, 2010) in the National Post (Financial Section) saying that the "Existing-home sales fell 9.5% in May from the previous month...", just confirmed my suspicions.
The same article also says that "tougher rules in the country's mortgage market took effect in April. All those looking for home-financing loans must now meet the standards set for five-year , fixed-rate mortgages, even if they are seeking a variable-rate mortgage. These guidelines effectively limit how much people can borrow.

Good News in the Labour Market, StatsCanada reveals.

Following large gains in April, employment rose by 25,000 in May, the fifth consecutive monthly increase. The unemployment rate was unchanged at 8.1%. Since the start of the upward trend in July 2009, employment has risen by 1.8% or 310,000.
Ontario's employment was up 18,000 in May, all in full-time work. The increase in May brings employment gains in that province to 127,000 (+1.9%) since July 2009, a rate of growth similar to the national average (+1.8%). In May, the unemployment rate edged up 0.1 percentage points to 8.9% as more people entered the labour market.

May's employment increase was mainly among women aged 55 and over (+17,000). Since July 2009, employment has grown the fastest among men aged 55 and over (+5.0%), followed by women aged 55 and over (+3.1%).

May Sales Remain High

According to TREB (Toronto Real Estate Board), Greater Toronto REALTORS® reported 9,470 sales through the Multiple Listing Service® (MLS®) in May, representing a one percent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.
TREB's President, Tom Lebour says “The pace of transactions slowed in May following record-setting sales in February, March and April,”. He also added that, “Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes.”
New listings were up 38% annually to 18,940. The average price for May transactions was $446,593 – up 13% compared to the average of $395,609 recorded in May 2009.
“The gap between listings and sales has widened, which means there is more choice for buyers,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The annual rate of price growth will slow in the second half of 2010, from the current double digit pace into the single digits.”
The median price in May was $376,750, from the $337,000 recorded during May of 2009.

Housing Figures for the Month of April show new Records

Greater Toronto REALTORS®, according to TREB (Toronto Real Estate Board) reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34% increase compared to April 2009. There were also 20,683 new listings in April – a 59% annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries.
“The GTA resale market is functioning properly. Sales were high as buyers continued to take
advantage of affordable home ownership opportunities. Listings grew as home owners reacted
to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour.
“More balanced market conditions will result in sustainable rates of annual price growth in the
second half of 2010.”
The average price for April transactions was $437,600 – up 13 per cent compared to the
average of $385,641 recorded in April 2009.
"Home sales continue to be driven by many different segments of the market, with sales
growth for all major home types in both the City of Toronto and surrounding 905 regions," said
Jason Mercer, TREB's Senior Manager of Market Analysis. "Home sales will remain strong in the
second half of 2010, but will slip from the current record pace as borrowing costs rise.”

Pressure to Beat HST and Increase of Interes Rates

The Real Estate Market in Toronto is so HOT, that I had to present offers to purchase a property for my most recent clients four (4) times, in four different properties due to the fact that for each listed property there were multiple Offers every time. No matter whether the sellers were holding offers or not, no matter how fast or early I showed the properties to my clients and registered the Offers, we'd always be involved in a multiple Offer situation.
Obviously every single buyer wants to beat the HST (New 13% Tax) and the increase of the Interest Rates that will kick in this summer.

$434,696 - Average Price for March Real Estate Transactions

According to TREB (Toronto Real Estate Board), greater Toronto Realtors® reported 10,430 sales through the Multiple Listing Service® (MLS®) in March, pushing total first quarter 2010 sales to 22,418 – the best result on record under the current Toronto Real Estate Board boundaries. The average price for March transactions was $434,696. The average price for the first quarter was $427,948.

These Happen When Interest Rates go up

When Lenders raise Mortgage (or Interest) Rates, (usually) a few things immediately happen in the Real Estate Market:
. Potential Home buyers have more difficulty to qualify for a mortgage (because now obtaining money from the lenders costs more).
. Potential Home buyers now qualify for smaller mortgage or don't qualify at all.
. Sellers (Property Owners) have more difficulty (depending on the location) to sell. They have to lower their expectations in terms of how long it's gonna take to sell the property(ies) and how much money they'll be able to obtain from a potential buyer in the new circumstances.

Mortgage Rates on the rise

Canadian banks delivered the first clear sign that the era of rock-bottom interest rates is over by suddenly hiking mortgage rates, a move that will cost Canadians more to finance home purchases and likely hasten an expected slowdown of the red-hot housing sector.
Surging home sales and prices were already expected to cool in the second half of this year as more listings hit the market and the Harmonized Sales Tax adds to purchase costs in Ontario and British Columbia.
Hikes on fixed-rate mortgages announced by three banks Monday (March 29, 2010) are expected to contribute to the slowdown as home buyers face higher costs amid a growing expectation that interest rates are likely entering a phase of higher levels.
The hikes are also expected to push some homeowners who have enjoyed ultra-low variable mortgage rates to lock in at set levels. Readings on inflation and the resurgent economy point to rate hikes within a few months by the Bank of Canada, whose trendsetting rate influences variable mortgage rates.
Royal Bank of Canada boosted the rate on five-year fixed-rate mortgages by 60 basis points to 5.85 per cent Monday, a move matched by Toronto-Dominion Bank. Laurentian Bank announced similar changes. Other major banks are likely to follow with rate hikes of their own.

Plenty of Indicators that Housing prices will remain strong

That is the title of an article by Diane Francis published on March 9, 2010 on the Financial Section of the National Post.

After participating in a Real Estate round table with professionals in Toronto, as she discribes in the article, the consensus was that prices would continue to increase, bot as much as last year. Besides that, she continues, there wee some interesting tidbits:

. Foreign "hot money" from Middle East, Europe, Asia and the United States is propping up the market and increasingly pouring into Toroto and Vancouver.

. Repatriating Canadians, fresh from Manhattan and London, are buying expensive real estate back home...

. Small condo units continue to be snapped up by Boomers and empty nesters as investments for rental purposes, to eventually live in when they downsize or to house their offspring in starter homes.

. Buying interest is due to record-low mortgage rates, but also the massive transfer of wealth being handed down to Boomers from their parents.

. Both Toronto and Vancouver are the principal destinations for roughly 300,000 new entrants annually (both from abroad and other parts of the country).

Garth Turner, former Tory Cabinet Minister, also present at the round table, suggested the prices will drop when mortgage rates rise this summer, and because they're too pricey.

February Sales and Average Price Increase Annually

During last month of February, 7,291 sales were reported by Toronto Realtors through the Multiple Listing Service® (MLS®), representing a 77% increase over February 2009. The average price for these transactions was up 19 per cent year-over-year to $431,509.
Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.
“Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise home types. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said TREB President Tom Lebour. “This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.” New listings also increased in February, climbing 24 per cent compared to the same month last year.
“Annual growth in new listings is expected to continue. New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable single-digit rates of price growth.”

Adjustments to Mortgage Insurance Starting April 19, 2010

Although the IMF (International Monetary Fund) says Canadian Housing Market remains strong, Ottawa decides to be cautious.
The federal government has announced changes to the rules for government-backed insured mortgages (less than 20 percent down payment) as follows:
All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms.
Reduced maximum amount that can be withdrawn in refinancing a government-backed insured mortgage to 90 per cent from 95 per cent of the value of the home.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. Borrowers purchasing owner-occupied residential properties will still be able to access government-backed mortgage insurance with a 5 per cent down payment.

If you plan to sell your Property, this is the time

If you plan to sell your Property, this is the time
Real Estate market in Toronto is hot and it seems, it's going to continue the same way for some more time. We expect to have a lot more listings next year (2010). The sales at mid October were already 34% up from the same period last year (2008) and the average price up in 17%. Therefore, if you plan to sell your property, this is the time to do it.The Central Bank of Canada intends to keep the overnight rate (rate used by banks to lend and borrow money among themselves) at 0.25%, which means consumers have more room to negotiate and obtain better rates from financial institutions. Another strong reason to sell, at least before summer of 2010, is that the Provincial Government of Ontario is going to introduce the 13% Harmonized Sales Tax (HST) which will replace the current 5% GST. The HST will apply to all goods and services (except, I think, diapers and baby food). In a real estate transaction, the HST will apply to Lawyer's fee, Real Estate Commissions' Fees, Home Inspection's Fee and Moving expenses' fees, increasing thus the expenses associated to the sale of your property.

Condo Suites and Townhouses - 27,000 of them in 2010

It's not news to any one the fact that New Condo Towers and new Townhouses in Toronto are popping up a little bit everywhere.
According to an article published recently in the Globe & Mail, the next two years promise to reshape the look and feel of the Greater Toronto Area in ways probably not felt since the building boom of the 1970s. Then, we went out. This time, we are going up. Quiet suburban neighbourhoods are about to vibrate with new life. Old, once-neglected industrial areas in the city core are about to be transformed into mini-villages.
It's predicted that over the next two years (2010 and 2011) we will see about 47,000 new condo suites become available to their owners – 27,000 of them in 2010.
The next two years will not only see neighbourhoods such as downtown west, the Sheppard corridor, North York west and Mississauga city centre become heavily populated, but also experience an economic and business boom.
There is going to be an enormous surge of new life in many areas of the GTA. Residential drives retail, so that means the influx of all these people will spark a whole wave of new retail and service businesses in those areas. It will also be a boom time for moving companies, furniture stores, electronics and appliances stores – even dog-walking services.
The ethnic makeup of many neighbourhoods will also change since many of these condos were bought by new Canadians. So you are going to see much more diverse multicultural neighbourhoods created.

Significant new challenges

One is an ever bigger shift to singles and couples and away from families in new high-density neighbourhoods. Condo suites large enough to accommodate growing families are far too expensive for the average family budget – even if builders were building them.

Public Transit
The TTC's planning still lags far behind need. The [Toronto] Transit Commission is planning stops where there is no population, and its response to rising costs of operation is to raise fares. Every time it does that it loses riders

Information from the source - Your Best Protection

Information from the source is definitely the best protection one can acquire. Forget about what the other ones say. The other ones only say what they want us to listen from them.
So before you begin working with a real estate broker or salesperson, make sure you confirm
that they are registered by using the online search feature available on RECO’s website (www.reco.on.ca). The information available includes the registration status, the current expiry date of registration and regulatory activities related to the brokerage, broker or salesperson, such as:
• Registrar's Proposals to refuse, revoke, suspend or apply conditions to a registration
• Charges under REBBA 2002 and related convictions
• Immediate suspensions ordered by the Registrar
• Decisions of Discipline and Appeals Panels related to ethical conduct

Read more here:
http://www.reco.on.ca/publicdocs/PublicAdvisory_TerryGraham_Second.pdf

Over 87,000 Transactions in 2009. Home prices to grow in 2010

In 2009 Greater Toronto REALTORS® reported 87,308 MLS® transactions – a 17% increase over 2008. This result included 5,541 sales in December. The 2009 result was in line with the healthy levels of sales experienced between 2004 and 2006, but lower than the record of 93,193 set in 2007.
After a slow start to the year, existing home sales rebounded during the second half of 2009. As consumer confidence improved, many households moved to take advantage of affordable home ownership opportunities in the GTA. The strong residential real estate sector was a key contributor to overall economic recovery in Canada.
The average home price in 2009 climbed four per cent to $395,460. The average price for
December transactions was $411,931.
Market conditions became very tight in the latter half of 2009. Sales climbed strongly relative to
the number of homes listed for sale, resulting in robust price growth that more than offset average price declines in the winter. A greater supply of listings in 2010 will see home prices grow at a sustainable pace.

Read more here:
http://www.torontorealestateboard.com/consumer_info/market_news/news2009/pdf/nr_market_watch_1209.pdf

Labour Market Figures for November 2009

According to Statistics Canada, employment rose by 79,000 in November, bringing the unemployment rate down 0.1 percentage points to 8.5%. Full-time employment increased by 39,000 in November, the 3rd consecutive monthly increase. Part-time employment also rose in November (+40,000), following two months of declines.

November saw an increase in the number of private (+57,000) and public (+54,000) sector employees, while the number of self-employed workers declined (-32,000). In recent months, the number of employees in the public sector, as well as the number of self-employed, has trended up, while in the private sector, the trend has been relatively flat.

Most of the gain in overall employment in November was among women aged 25 to 54 (+51,000) and men aged 55 and over (+17,000).
Almost all the employment growth in November was attributable to the service sector (+73,000), especially educational services. With November's increase, employment in the service sector is back at its October 2008 level, while employment in the goods sector remained well below (-324,000) where it was at that time.
Employment growth was widespread across most provinces with the largest gains in Ontario, Quebec and Alberta.

Strong, again, Resale Housing Market in November

Greater Toronto Realtors reported 7,446 sales in November - slightly more than double the November 2008 result when GTA home sales had dipped markedly due to the economic downturn. Year-to-date sales were up 14% compared to the first 11 months of 2008.
This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006.
Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.
The average price for November transactions was up 14% year-over-year to $418,460. The average price year-to-date was up 4% to $394,464.
Very strong annual growth rates for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter. As we move into the spring, growth rates will move to more sustainable levels.

Hot Market Despite Cooler Weather

Winter may be fast approaching but there is certainly no cooling trend when it comes to the Great Toronto Area resale housing market.
In the first two weeks of November, Toronto Realtors reported 3,666 sales, an 84% increase compared to the same period a year ago. The Average price of GTA homes sold during this timeframe also grew, by 10%, to $415,066.
Condominium activity throughout the GTA was even more extraordinary. Sales of this housing type increased 90% to 959 transactions, with an average price of $296,664, up 15% year over year.
The number of sales in the City of Toronto increased by 88% compared to the same period a year ago, reaching a total of 1,560 transactions. The average price meanwhile, climbed to $441,893, a 10% increase from mid-November last year.
Condominium sales in Toronto almost doubled to 674 trasactions, an increase of 97% from a year ago. They sold at an average price of $317,939, up 13% year-over-year.

The Broad Impact of the New Tax HST and the Cost of buying, owning and living in a Home

Starting July 1, 2010 Ontarians can expect to pay a harmonized sales tax (HST) rate of 13% on a long list of goods and services that were previously exempt from the 8% Provincial Sales Tax (PST). While the impact of the tax will be felt by all Ontarians, the province’s 3 million homeowners and the thousands who buy and sell a home every year will be hit particularly hard by this latest tax grab.
REALTORS® know how important the dream of homeownership is to Ontario families. Unfortunately, thanks to the forthcoming HST, that dream is going to become much more expensive. After July 1, 2010, every residential real estate transaction in Ontario will face a significant tax increase. Specifically, home buyers and sellers can expect to pay 8% more on legal fees, appraisals, real estate commissions, home inspection fees, moving costs and the provincial government’s forthcoming system of mandatory home energy audits. According to the Ontario Real Estate Association (OREA) Ontarians will pay, on average, an additional $1,449 in new taxes on their next residential real estate transaction.
The new tax will increase the cost of buying a home and the costs of owning and living in that home after it’s been purchased. Specifically, a HST will add hundreds, potentially thousands of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. Moreover, a HST will increase the cost of living with 8% more tax on gasoline, personal and professional services, meals under $4, dry cleaning, cab fares, magazine subscriptions, plane tickets, vitamins and cell phone charges.
In short, a HST will reduce the people of Ontario’s quality of life by taking more of their hard earned money. While the Government of Ontario plans to compensate homeowners by offering sales tax transition cheques and modest income tax reductions, these measures will in no way offset this new tax. A onetime payment of $1000 (for a family of four) and a modest $368 reduction in income taxes will do very little to offset the burden of an 8% tax increase on a litany of items in perpetuity. Certain basic needs, like groceries, prescription drugs, and children’s clothing, would be exempt from the new tax. Unfortunately, the provincial government is not proposing to provide a similar exemption for home purchasing costs. Having a roof over one’s head is about as basic as needs get, and the government should recognize this by ensuring that the costs associated with purchasing a home are exempt from the new tax.

Toronto Real Estate Sales up 64% in October

Greater Toronto Realtors reported 8,476 Sales in October 2009, up 64% from October 2008. The average price for October transactions was $423,559 - up by 20% compared to the same month last year. "Strong Sales growth has occurred across many property classes - from price ranges that would attract first-time buyers to luxury properties selling for over 1 million dollars,"said TREB President. The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales declined at an above-average rate last year."

Year-to-date sales, at 74,721, were up 9% compared to the first ten months of 2008. Average price, at $392,264 was up by almost 3%. "After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings," according to a TREB's Manager. "Watch for listings to rebound in 2010 as home owner react to the strong sales and price growth experienced in the latter half of this year.

City of Toronto, 3,554 Sales, average price - $464,212

Rest of GTA - 4,922 Sales, average price - $394,205

Total GTA - 8,476 Sales, average price - $423,559

If you plan to sell your Property, this is the time

Real Estate market in Toronto is hot and it seems, it's going to continue the same way for some more time. We expect to have a lot more listings next year (2010). The sales at mid October were already 34% up from the same period last year (2008) and the average price up in 17%. Therefore, if you plan to sell your property, this is the time to do it.
The Central Bank of Canada intends to keep the overnight rate (rate used by banks to lend and borrow money among themselves) at 0.25%, which means consumers have more room to negotiate and obtain better rates from financial institutions.
Another strong reason to sell, at least before summer of 2010, is that the Provincial Government of Ontario is going to introduce the 13% Harmonized Sales Tax (HST) which will replace the current 5% GST. The HST will apply to all goods and services (except, I think, diapers and baby food).
In a real estate transaction, the HST will apply to Lawyer's fee, Real Estate Commissions' Fees, Home Inspection's Fee and Moving expenses' fees, increasing thus the expenses associated to the sale of your property.

Good News for Labour Market - StatCan revealed

It's all over the media. Employment increased for the second consecutive month, up 31,000 in September, driven by large full-time gains.
The unemployment rate fell to 8.4%, the first monthly decline since the beginning of the labour market downturn in the fall of 2008.
September's full-time increase of 92,000, the larges since May 2006, was partially offset by part-time losses of 61,000. The increase in full-time work was mainly among youths and women aged 25 and over and in Ontario.
Construction, Manufacturing and Educational Services saw employment increases in September, while there were declines in Transportation and Warehousing.
Manufacturing employment increased by 26,000, in construction it rose again in September, +25,000 and employment in Educational Services saw a gain of 18,000.
In Transportation and Warehousing jobs were lost by 21,000 in September, mostly in Truck Transportation in Ontario and Quebec.

... and the Housing Market Stays the same: Hot

The Greater Toronto Realtors reported 8,196 sales in September 2009, up 28% from September 2008.
The average price for September transactions was $406,877 - up by 10% compared to the same month last year.
We've experienced an increasing rate of existing home price growth in the GTA as sales have continued to outpace 2008 results.
Consumers have remained confident in ownership housing as a long-term investment. Year-to-date sales, at 66, 437 were up 4.5% compared to the first 9 months of 2008. Average price, at $388,417 was up by almost 1.5%.
Existing home sales will finish strong this year, pushing through the 80,000 mark and moving in line with some of the best years on record under the current TREB (Toronto Real Estate Board) market area.

Real Estate August Numbers show strong Market

In August 2009, greater Toronto Realtors reported 8,035 sales, up 27% from August 2008. The average price for August transactions was $387,921 - up by 6% compared to the same month last year. The increase in demand for existing homes has been widespread across different housing types and price ranges. This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a life-style change.
Year-to-date sales, at 58,421 were up 2% compared to the first eight months of 2008. Home sales have helped other sectors of the economy through homes buyers' spending on things like financial and legal services, moving, renovations and home furnishings.

Toronto Real Estate Market Continued Strong in July

Although the unemployment figures are not improving, almost 45,000 jobs were lost in July, the Greater Toronto Realtors reported 9,967 Sales during the month of July 2009. Up 28% from July 2008.
The average price for the July Transactions was $395,414, up by six per cent compared to the same month last year.
The Real Estate Sector has been one of the sectors making a positive contribution to economic growth in GTA (Great Toronto Area).
Year-to-date Sales at 50,632 are down 1.2 per cent compared to the firs 7 months of 2008. Average price at $385,808 is down by less than one-half of one per cent.