Homes Prices Will Continue to Rise in 2014

On February 19, Toronto Real Estate Board President Dianne Usher announced that “sales growth has rebounded so far in February after a slow start to the year in January.  While new listings were still down in comparison to last year, the annual rate of decline was less than experienced last month.  This may point to an improvement in the listings situation moving forward, which would help alleviate some of the pent-up demand that currently exists in the marketplace."

Greater Toronto Area REALTORS® reported 2,767 sales through the TorontoMLS system during the first 14 days of February.  This result was up by 1.3 per cent in comparison to 2,731 transactions reported during the same period in 2013.  New listings were down by 6.1 per cent on a year-over-year basis.

"Price growth well above the rate of inflation will be the norm for the remainder of the year.  Over the same period, mortgage rates are expected to remain low, thereby keeping home ownership affordable in the GTA," said Jason Mercer, TREB's Senior Manager of Market Analysis.

The average selling price during the first two weeks of February 2014 was $547,107 – up 7.8 per cent compared to the average of $507,474 for the first 14 days of February 2013.

Listings in January were Down by 16%, but prices were up by more than 9%

On February 5th, 2014, Toronto Real Estate Board said that Home ownership in the Greater Toronto Area remains affordable and there are many people looking to purchase a home.  In January, the number of homes listed for sale was down quite strongly compared to last year, which means that it was difficult for some buyers to find a home.

Greater Toronto Area REALTORS® reported 4,135 sales through the TorontoMLS system in January 2014.  This result was down by 2.2 per cent in comparison to January 2013.  New listings entered into the system were down over the same period by 16.6 per cent to 8,822.

“Looking forward, it is possible that strong price growth, and therefore an increase in home equity, will act as a trigger for more households to list their homes for sale.  This is especially the case for households whose life styles are changing, including those with an expanding family looking for a larger home or empty nesters looking to downsize,” said Dianne Usher, President,Toronto Real Estate Board.

The average selling price for January 2014 sales was $526,528 – up by more than nine per cent compared to $482,080 in January 2013.

“The pace of price growth will remain strong in 2014.  Similar to last year, competition between buyers for singles, semis and town homes in the City of Toronto and surrounding regions will continue to exert upward pressure on selling prices.  At the same time, mortgage rates will remain near historic lows, so despite strong price growth, home ownership will remain affordable for the average household in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Zero savings: A fifth of Canadians put nothing aside in 2013

According to an article published by the Financial Post (National Post) on January 25, 2014, almost a fifth of Canadians saved nothing at all last year, not a cent.

Blaming bills or debt or a lack of funds, 17% of individuals polled by Pollara for BMO’s household savings report, said they couldn’t save.

Respondents cited insufficient income to save (69%), high expenses (67%) and debt management (50%) as barriers for meeting their savings goals.

There is a silver lining, however, as this figure dropped from 28% in 2012 to 17% in 2013.

For the full article use the link: http://business.financialpost.com/2014/01/25/zero-savings-a-fifth-of-canadians-put-nothing-aside-in-2013/

Average Selling Price for November was up 11.3%

Yesterday, TREB announced that Greater Toronto Area REALTORS® reported 6,391 Residential sales through the TorontoMLS system in November, representing a 13.9 per cent increase over the sales result for November 2012. Over the same period, new listings on TorontoMLS were down by 4.4 per cent and month-end active listings were down by12.1 per cent.
“Growth in sales was strong for most home types in the Greater Toronto Area. Sales growth was led by the single-detached market segment followed by condominium apartments. Together, singles and condos accounted for almost three-quarters of total GTA transactions,” said Toronto Real Estate Board President Dianne Usher.
“With National Housing Day having just passed, housing affordability is top of mind in the GTA and indeed nationally. Despite strong price growth and an uptick in borrowing costs this year, monthly mortgage payments on the average priced home remain affordable for a household earning the average GTA income,” continued Ms. Usher.
The average selling price for November 2013 TorontoMLS transactions was $538,881 – up by 11.3 per cent in comparison to the average of $484,208 reported for November 2012.
The MLS® Home Price Index (HPI) Composite Benchmark was up by 5.7 per cent over the
same period.
“Whether we consider the average TorontoMLS selling price or the MLS® HPI Composite
Benchmark, annual home price growth remained well-above the rate of inflation in November. This makes sense given the fact that competition between buyers increased last month. Transactions were up strongly year-over-year while the number of homes available for sale was down,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Economic Indicators:
Real GDP Growth, Q3 2013 up 2.7%
Toronto Employment Growth, October 2013 up 3.5%
Toronto Unemployment Rate, October 2013 up 8.0%
Inflation (Yr./Yr. CPI Growth, October 2013 down 0.7%
Bank of Canada Overnight Rate, November 2013 - 1.0%
Prime Rate, November 2013 - 3.0%

When it Comes to Real Estate, Toronto is to Canada what New York is to the US

No matter what Mortgage Rules Finance Minister, Jim Flaherty, implements, no matter what predictions the Lenders come up with every week through the Media, no matter what  Land Transfer Tax or crisis is out there, the Real Estate market in Toronto is always hot and the prices keep going up. Specially now, when the World Economy crisis is keeping the interest rates low (European Central Bank just cut even more their overnight rate to 0.2%) and our banking system continues to be the Best in the World.

Economic Prospects, Diversity, Inclusiveness and Entertainment Entice All of us,
And Toronto has it all
Toronto is the most diverse city in north America with very low crime rate, making this jurisdiction very attractive and safe to everyone.

It's the place where immigrants arrive everyday (from outside the Country and other provinces) to live, work and invest, because, independently of our differences, we can all peacefully get along and feel we belong here.

 

Toronto (and its suburbs) is the number one place for business in Canada. Some say it's the economic engine of the Country. It is where so many business opportunities and job openings are available from different industries and services, and from thousands and thousands of small and medium businesses that are created everywhere across the city: Accounting, Real Estate, Law, Doctors' and Dental Offices, Pharmacies, Office Supplies, Building Supplies and Electronic Supplies Stores, Car Garages, Grocery Stores, Restaurants, Bakeries, Bars, Coffee Shops, Construction Companies ( and subcontractors) that employ bricklayers, carpenters, plumbers, electricians and roofers, Cleaning Companies, etc, etc.

Toronto is where the Stock Market (TMX Group) operates from, as well as major Banks (RBC,CIBC, BMO, TD...), major Insurance, Investment Companies and Accounting Firms, major Hospitals, Drug Companies (Pfizer), Universities and Colleges, Real Estate Companies, Builders, major Retailers (Future Shop, Best Buy, Canadian Tire,  Home Depot, Wal-Mart, NoFrills...), other Companies such as Coca-Cola Canada, Dell Canada, TTC, Fairmont Hotels & Resorts, Hilton, Sheraton, Bell Canada, Rogers Communications, MLSE (Toronto Maple Leafs, Toronto Raptors, Toronto F.C.), Car makers (Ford, GM...) and car dealers, etc, etc.

Major Events take place annually in the city, involving thousands of people and generating millions of dollars: TIFF (Toronto International Film Festival), Caribbean Carnival, Canadian International Auto-show, Honda Indy, St. Patrick's Day Parade, Pride Week (Gay Parade), Luminato, Downtown Jazz Festival, MuchMusic Video Awards,  Santa Clause Parade, The Beaches Jazz Festival, Canadian International Air Show...many street festivals such as Corso Italia on St. Clair West, Taste of the Danfort, Roncesvalles Polish Festival, Word on the Street, Ukrainian Festival...

Everybody wants to see and visit the CN Tower, enjoy and have a memory of Canada's Wonderland and/or Lion Safari, take the Ferry to Toronto Islands, enjoy High Park and many other parks for a picnic, or simply jog or ride the gorgeous bike paths (and parks) along Lake Ontario.
This is the place where every year major music entertainers (Madonna, Justin Timberlake, Drake, Rihanna...) have the pleasure to come to perform for thousands in concerts.

The diversity, diverse economy and the job market provide and create the right mix of opportunities, tastes, flavours and ritms that is welcoming and supportive, and attract young (and not so young), creative and dynamic talent. 

Therefore it's just a matter of time, until all these people decide they'll need to buy some piece of Real Estate to fully become a proud Torontonian.

At some point, we realize that Real Estate value goes up fast, faster than our income, becoming an investment that provides returns above the inflation rate and that later in life can be used as a very profitable tool when we decide to retire.

I think it's very important to keep in mind that we don't know what the economic conditions will be at the time we retire. Our Pension alone might not be enough.

September 2013 sees 30% More Sales than in September 2012

Greater Toronto Area REALTORS® reported 7,411 residential sales through the TorontoMLS system in September 2013, representing a 30 per cent increase compared to 5,687 transactions reported in September 2012.  Year-to-date, total residential sales reported through TorontoMLS amounted to 68,907 during the first nine months of 2013 – down by one per cent compared to the same period in 2012.

“It’s great news that households have found that the costs of home ownership, including mortgage payments, remain affordable.  This is why the third quarter was characterized by renewed growth in home sales in the GTA.  We expect to see sales up for the remainder of 2013, as the pent-up demand that resulted from stricter mortgage lending guidelines continues to be satisfied,” said Toronto Real Estate Board President Dianne Usher. 

The average selling price for September transactions was $533,797 – up by 6.5 per cent year-over-year.  Through the first three quarters of 2013, the average selling price was $520,118 – up by over four per cent compared to the first nine months of 2012. 

The MLS® Home Price Index composite benchmark for September was up by four per cent year-over-year.  The annual rate of growth for the composite benchmark has been accelerating since the spring of 2013. 

“The price growth story in September continued to be about strong demand for low-rise home types, coupled with a short supply of listings.  Even with slower price growth and month-to-month volatility in the condo apartment market, overall annual price growth has been well above the rate of inflation this year.  This scenario will continue to play out through the remainder of 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

... and the Trend Continues. August Figures Show Sales Up and Avg. Price Up

Greater Toronto Area REALTORS® reported 7,569 residential transactions through the TorontoMLS system in August 2013. This represented a 21 per cent increase compared to 6,249 sales in August 2012.
“Sales were up strongly this past August for all major home types compared to last year. Many households have accounted for the added costs brought on by stricter mortgage lending guidelines and have reactivated their search for a home. These households have found that a diversity of affordable ownership options exist throughout the GTA,” said Toronto Real Estate Board President Dianne Usher.
The average selling price for August 2013 was $503,094 – up by almost 5.5 per cent compared to the average of $477,170 in August 2012. The MLS® Home Price Index (HPI) composite benchmark was up by 3.7 per cent over the same period.
“Despite an increase in borrowing costs during the spring and summer, an average priced home in the GTA has remained affordable for a household earning an average income. With this in mind, tight market conditions are expected to promote continued price growth through the remainder of 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

One of the Best "Julys" Ever. Trends and Forecasts remain Strong

Greater Toronto Area REALTORS® reported 8,544 residential sales through the TorontoMLS system in July 2013. Total sales were up by 16 per cent compared to July 2012. Over the same period, new listings added to TorontoMLS and active listings at the end of the month were up, but by a substantially smaller rate of increase compared to sales.
“Last month’s sales represented the best July result since 2009 and was the third best July result on record. Despite recent increases in average borrowing costs, home buyers are still finding affordable home ownership options in the GTA,” said Toronto Real Estate Board President Dianne Usher.
“We are a year removed from the onset of stricter mortgage lending guidelines and many households who put their decision to purchase a home on hold have reactivated their search. An increasing number of these households are getting deals done,” continued Ms. Usher.
Reflecting tighter market conditions, the average selling price for July sales was up on a year over-year basis by 8% to $513,246. The low-rise market segment continued to be the driver of overall price growth. It should be noted, however, that the average condominium apartment price was also up by more than the rate of inflation on an annual basis. The MLS® Home Price Index (HPI) was also up on a year-over-year basis for all major home types.
“We are forecasting continued average price growth for the remainder of 2013 and through 2014 as well. Months of inventory for low-rise homes remains near record lows, suggesting that sellers’ market conditions will remain in place in the second half of 2013. An increase in listings in 2014 would lead to more balanced market conditions and a slower pace of price growth next year, albeit still above the rate of inflation,” said Jason Mercer, TREB’s Senior Manager of Market Analysis

Toronto Resale Housing Figures for June up 4.7%

Greater Toronto Area REALTORS® reported 9,061 sales through the TorontoMLS system in June 2013 – down by less than 1% compared to June 2012.  Over the same period, new listings were down by a greater rate than sales, suggesting market conditions became tighter.

"The sales picture in the GTA improved markedly in the second quarter of 2013. While the number of transactions was still down compared to 2012, rates of decline were substantially improved compared to the first quarter," said Toronto Real Estate Board President Dianne Usher.

"As a growing number of homebuyers, many of whom put their purchase on hold due to stricter lending guidelines, now reactivate their search, the expectation is for renewed growth in home sales in the second half of 2013," added Ms. Usher.

The average selling price in June was up by 4.7 per cent year-over-year to $531,374.  In line with the 2013 norm, June price growth was driven by the single-detached and semi-detached market segments, particularly in the City of Toronto.  Over the same time period, average condominium apartment selling prices remained in line with 2012 levels.

"The short supply of low-rise home types in many parts of the GTA relative to the number of households looking to buy continued to prompt strong upward pressure on selling prices of singles and semis," said Jason Mercer, TREB's Senior Manager of Market Analysis.  "We have also seen enough buyers in the better-supplied condo apartment market to provide support for selling prices at current levels."

As Long as Interest Rates Stay Low, Toronto continues to be a Hot Market with 3.5% Average Selling Price Increase

Two days ago, according to Toronto Real Estate Board (Treb), Greater Toronto Area (GTA) REALTORS® reported 10,182 sales through the TorontoMLS system in May 2013, representing a dip of 3.4 per cent compared to May 2012.Sales of single-detached homes in the GTA were up by almost one per cent compared to the same period last year, including a three per cent year-over-year increase in the City of Toronto.

“The sales picture in the GTA has improved markedly over the past two months.While the number of transactions in April and May remained below last year’s levels, the rate of decline has been much smaller.A growing number of households who put their decision to purchase on hold as a result of stricter lending guidelines are starting to become active again in the ownership market,” said Toronto Real Estate Board President Ann Hannah.

The average selling price for May 2013 sales was $542,174 – up by 5.4 per cent in comparison to $514,567 in May 2012.The annual rate of price growth was driven by the tight low-rise segment of the market and particularly by single-detached and semi-detached home transactions in the City of Toronto.Average condominium apartment prices were also up slightly in comparison to last year.

“The annual rate of price growth in May was not surprising given the competition that still exists between buyers, particularly for low-rise home types such as single-detached and semi-detached houses.We remain on track for a three-and-a-half per cent increase in the average selling price for 2013 as a whole,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Bank of Canada maintains overnight rate target at 1 per cent

The Bank of Canada announced yesterday, April 17, 2013, that it is maintaining its target for the overnight rate at 1 per cent.
The Bank of Canada has held the benchmark interest rate at 1% for nearly three years running and despite record household debt, a crumbling eurozone and slowing growth in China, there’s still no sign that’s going to change any time soon.
Interestingly, the Governor of the Bank of Canada has been hinting for more than a year that the next rate move will be up even as the outlook for economic growth has grown increasingly gloomy — leading some observers to predict that in fact a downward shift is more likely.

Home Prices at 3.8% Up at the End of March

Year - Over - Year Summary

                                                    2013               2012             %Chg

Sales                                            7,765              9,385           -17.3%

New Listings                             14,728            16,191             -9.0%

Active Listings                          18,384            16,920              8.7%

Average Price                        $519,879       $500,875              3.8%

Average DOM                             24                  21                  13.8%

TREB's (Toronto Real Estate Board) Average price forecast for 2013 remains at $515,000.00, representing a 3.5 per cent annual rate of growth.

March Sales Numbers and Current Market Conditions

Greater Toronto Area REALTORS® reported 7,765 transactions through the TorontoMLS system in March 2013 – down 17 per cent compared to 9,385 transactions in March 2012. While the year-over-year dip in March sales followed the trend that has unfolded since mid-way through 2012, it is also important to note that the Good Friday holiday was in March this year versus April in 2012. Generally speaking, there are fewer sales reported on statutory holidays and weekends.

In the first quarter of 2013, sales amounted to 17,678 – down by 14 per cent compared to Q1 2012.
"Home ownership remains affordable for a household earning the average income in the Greater Toronto Area.There are many willing buyers in the marketplace today.While some households have put their decision to purchase on hold as a result of stricter lending guidelines or the additional Land Transfer Tax in the City of Toronto, other households simply haven’t been able to find the right house due to a shortage of listings in some market segments," said Toronto Real Estate Board President Ann Hannah.
The average selling price in March was $519,879 – up by 3.8 per cent compared to March 2012. The average price in Q1 2013 was $508,066 – up by 3.2 per cent compared to the first quarter of 2012.
"The average selling price and the MLS® Home Price Index Composite Benchmark was up on a year-over-year basis across most home types, especially in the low-rise market segments where supply remains an issue.TREB's average price forecast for 2013 remains at $515,000, representing a 3.5 per cent annual rate of growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.

February Sales Down 15% but Average Price is Growing

Today, March 5, Toronto Real Estate Board released the February Resale Housing Figures.
Greater Toronto Area (GTA) REALTORS® reported 5,759 sales through the TorontoMLS system in February 2013 – a decline of 15 per cent in comparison to February 2012. It should be noted that 2012 was a leap year with one extra day in February. A 28 day year-over-year sales comparison resulted in a lesser decline of 10.5 per cent.
The average selling price for February 2013 was $510,580 – up two per cent in comparison to February 2012.

“The share of sales and dollar volume accounted for by luxury detached homes in the City of Toronto was lower this February compared to last. This contributed to a more modest pace of overall average price growth for the GTA as a whole,” said Toronto Real Estate Board (TREB) President Ann Hannah.

“Stricter mortgage lending guidelines that precluded government backed mortgages on homes sold for over one million dollars and the City of Toronto’s additional upfront land transfer tax arguably played a role in the slower pace of luxury detached home sales,” added Ms. Hannah.

The MLS® HPI Composite Benchmark price covering all major home types eliminates fluctuations in price growth due to changes in sales mix. The Composite Benchmark price was up by more than three per cent on a year-over-year basis in February.

“We will undoubtedly experience some volatility in price growth for some market segments in 2013. However, months of inventory in the low-rise market segment will remain low, resulting in average price growth above three per cent for the TREB market area this year. Our current average price forecast is $515,000 for all home types combined in 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

2013 Experiences a Good Start Though Land Transfer Tax continues to be a Burden in Toronto

According to Toronto Real Estate Board, Greater Toronto Area REALTORS® reported 4,375 transactions through the TorontoMLS system in January 2013. This number represented a slight decline compared to 4,432 transactions reported in January 2012.

“The January sales figures represent a good start to 2013. While the number of transactions was down slightly compared to last year, the rate of decline was much less than what was experienced in the second half of 2012. This suggests that some buyers, who put their decision to purchase on hold last year due to stricter mortgage lending guidelines, are once again becoming active in the market,” said Toronto Real Estate Board (TREB) President Ann Hannah.

“It is interesting to note that sales were up for many home types in the GTA regions surrounding the City of Toronto. This is due, at least in part, to the additional upfront land transfer tax in the City of Toronto,” added Ms. Hannah.

The average selling price for January 2013 sales was $482,648 – up by 4.3 per cent compared to $462,655 in January 2012. The MLS® Home Price Index (HPI) Composite Benchmark price was up by 3.8 per cent over the same period.

“There will be enough competition between buyers in the marketplace to prompt continued growth in home prices in 2013. Expect annual average price growth in the three to five per cent range this year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Employment Numbers Looking Good, according to Report

Last friday, January 4, 2013, "Statistics Canada" announced that Employment in the country rose by 40,000 in December 2012, the fourth increase in five months. December's increase was all in full-time work. The unemployment rate declined 0.1 percentage points to 7.1%, the lowest in four years.
Provincially, employment increased in Ontario (33,000 according to CBC News), Manitoba, Saskatchewan, Newfoundland and Labrador and Prince Edward Island in December. At the same time, there was a decline in Nova Scotia.

The Trend's been the same since June 2012: Stricter Mortgage Guidelines and Land Transfer Tax put pressure on Sales

According to Toronto Real Estate Board (Treb), Greater Toronto Area REALTORS® reported 3,690 sales through the TorontoMLS system in December 2012 – down from 4,585 sales in December 2011. Total sales for 2012 amounted to 85,731 – down from 89,096 transactions in 2011.
“The number of transactions in 2012 was quite strong from a historic perspective. We saw strong year-over-year growth in sales in the first half of the year, but this growth was more than offset by sales declines in the second half. Stricter mortgage lending guidelines resulted in some households postponing their purchase of a home. In the City of Toronto, the dip in sales was compounded by the additional Land Transfer Tax, which buyers must pay upfront,” said Toronto Real Estate Board (TREB) President Ann Hannah.
The average selling price in December 2012 was up by 6.5% year-over-year to $478,739. The average selling price for 2012 as a whole was up by almost 7% to $497,298.
“Robust annual rates of price growth were reported through most months of 2012. Price growth was strongest for low-rise homes, including singles, semis and townhouses. Despite a dip in sales, market conditions remained tight for these home types with substantial competition between buyers,” said TREB’s Senior Manager of Market Analysis Jason Mercer.

November Resale Housing Figures

TORONTO, December 5, 2012 -- Greater Toronto Area REALTORS® reported 5,793 sales in November 2012 – down by 16 per cent compared to November 2011.

“Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012,” said Toronto Real Estate Board (TREB) President Ann Hannah.

“Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages, have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront Land Transfer Tax takes money away from buyers that otherwise could be used for a larger down payment,” continued Ms. Hannah.

The average selling price was up by 1.6 per cent annually to $485,328. The MLS® Home Price Index (MLS® HPI) Composite Benchmark was up by 4.6 per cent compared to last year.

“The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over one-million dollars was down substantially, which influenced the overall average price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis

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.