June Data reveals that Semi-Detached Homes had the Strongest Price Increase, 9.7%

Last Friday, July 4, the President of the Toronto Real Estate Board, Paul Etherington announced a strong increase in residential sales reported through the TorontoMLS system in June.  Sales were up by 15.4 per cent year-over-year to 10,180 transactions.  New listings were also up compared to the same period in 2013, but by a lesser annual rate.  This means that competition between buyers increased in June.

“Home buyers in the Greater Toronto Area are confident in their ability to purchase and affordably pay for a home.  Generally speaking, buyers feel that ownership housing will be a good investment over the long term.  This is why we continued to see increases in home sales in June for all major home types across the GTA.  Given the degree of pent-up demand in the market today, I would expect to see sales growth continue through the summer,” said Mr. Etherington.

The average selling price for June transactions was $568,953, representing an increase of 7.4 per cent compared to June 2013.  The strongest price increase for the GTA as a whole was for semi-detached houses, with the average price up by 9.7 per cent year-over-year.  The pace of price growth for condominium apartments was also strong at 6.8 per cent.

“With less than two months of inventory in many parts of the GTA, it makes sense that we continued to experience very strong price growth in June.  This is especially the case for low-rise home types like singles, semis and townhouses.  Strong price growth for these home types will continue through the remainder of 2014.  Despite higher inventory levels, the condominium apartment market segment has benefitted from enough buyer interest to result in above-inflation price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Home Renovations are almost 4% of GDP of Canada, $63.4 Billion Industry

Recently Business News Network (BNN) in Canada talking about the effects of the Home and Garden TV Show (http://www.bnn.ca/News/2014/7/2/HGTV-effect-causes-record-home-renovations-.aspx), mentioned that the renovation industry raked in $63.4 billion in 2013 alone – a number that represents around 3.7 percent of Canada’s total GDP. 
Lower interest rates and rising home values have allowed homeowners to tap into more equity for big upgrades.
Essentially, homeowners pulled money out of their homes (Percentage of Home Equity landed to owners by Financial Institutions), only to put it right back in.
Renovations costs are expected to grow fastest in Alberta in 2014 and 2015, with a five percent projected increase in spending for each year, according to the report.
The good news for firms in the renovation sector is that we don't foresee an end to the expansion trend in the near term.

According to the World Bank (http://www.worldbank.org/en/country/canada), the GDP (Gross Domestic Product) of Canada in 2013 was $1,825 Trillion USD and the population 35.16 Million.

Sales and Prices Strongly Up in May, as Borrowing Costs remain near Record Lows

On Wednesday, June 4th, Toronto Real Estate Board President Dianne Usher announced that both the number of home sales through the TorontoMLS system and the average selling price were up strongly in May compared to a year ago. 

Total TorontoMLS sales for May 2014 amounted to 11,079 – a new high for the month of May.  This result was up by 11.4 per cent compared to 9,946 sales reported in May 2013.  The average selling price for these sales was $585,204, representing an 8.3 per cent year-over-year increase compared to the average price of $540,544 in May 2013. 

“We are now at the peak of the spring market when we generally see the greatest number of sales and the highest average selling prices.  Based on the May statistics, buyers have been more active this spring compared to last year.  Despite strong price growth so far in 2014, many households remain comfortable with the monthly mortgage payments associated with the purchase of a home, as borrowing costs have remained at or near record lows over the past few months,” said Ms. Usher. 

Average selling prices varied across the Greater Toronto Area, depending on geography and home type.  A detached home in the City of Toronto sold, on average, for $943,055.  In the surrounding GTA regions, the average detached price was $648,439.  The average price for condominium apartments was $401,809 in the City of Toronto and $307, 307 in the surrounding regions. 

“The listings situation in the GTA did not improve this past May.  With listings down and sales up compared to last year, competition between buyers increased.  The result was price growth well-above the rate of inflation, especially for singles, semis and townhomes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. 

“It is also important to point out that even though the condo apartment market segment remains comparatively well-supplied, as new project completions have generally led to an uptick in listings, we have seen enough buyer interest to prompt strong condo price growth as well,” continued Mercer.

Average Selling Price for April - up by 10.1 per cent. Lack of Inventory keeps putting pressure on home prices.

Toronto Real Estate Board President Dianne Usher announced today (May 6, 2014) that during April – the first full month of spring – Greater Toronto REALTORS® reported a 1.8 per cent year-over-year increase in sales through the TorontoMLS system.  Total April 2014 sales amounted to 9,706, compared to 9,535 transactions in April 2013. 

“April marked the beginning of the spring market, during which time we generally see the highest monthly sales totals in a given year.  Despite the persistent shortage of listings, a substantial number of GTA residents were able to come to terms on a home that met their needs.  However, sales levels would have been higher, but for the lack of supply,” said Ms. Usher.

“A number of factors underlie the constrained supply of listings.  Studies and polling suggest that the additional upfront land transfer tax in the City of Toronto has prompted some households to stay put and renovate rather than list their home and move.  In the broader GTA context, above-trend home sales in the years leading up to the recession have meant that many households who purchased during this period simply aren’t ready to move again,” continued Ms. Usher.

The average selling price for April 2014 sales was $577,898 – up by 10.1 per cent compared to the April 2013 average of $524,868. 

“Price growth for the GTA as a whole was driven by the single-detached, semi-detached and townhouse market segments in the City of Toronto.  So far this year, there has been no relief on the listings front for these home types in many neighbourhoods in Toronto and surrounding regions.  Until we see a marked and sustained increase in listings, we should expect to see the annual rate of price growth above the long-term norm,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

To view TorontoMLS Sales & Average Price  By Home Type April 1 - 30, 2014, paste the link below on your browser.

http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_market_watch_0414.htm

March Home Sales Increase Average Price by almost 8%

Toronto Real Estate Board President Dianne Usher announced that Greater Toronto Area REALTORS® reported strong year-over-year increases in TorontoMLS home sales and the average selling price in March 2014.  Home ownership affordability, backstopped by low borrowing costs, continued to be a key factor underlying this growth.

A total of 8,081 sales were reported in March 2014 – up by 7.2 per cent in comparison to March 2013.  Sales growth was much stronger in March compared to the first two months of the first quarter.  Sales for Q1 as a whole were up by three per cent compared to the first three months of 2013.

“Sales activity in the GTA accelerated last month.  Compared to last year, a greater number of buyers found affordable home ownership options, as evidenced by sales growth for all major home types.  Against this backdrop, however, overall inventory at the end of March remained lower than last year.  This means competition between buyers increased, which is why the average selling price continued to climb,” said Ms. Usher.

The average selling price for March 2014 sales was $557,684 – an increase of almost eight per cent compared to the average reported for March 2013.  The average price for the first quarter of 2014 was up by 8.5 per cent year-over-year. 

"With borrowing costs remaining low, and in fact declining, strong home ownership demand will continue to butt up against a constrained supply of listings. Strong price growth will be the result for the remainder of 2014. If the pace of price growth experienced in the first quarter is sustained, TREB may revise its outlook for the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis.

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.