Sales Strong in November

December 3, 2010 -- Greater Toronto REALTORS reported 6,510 existing home sales in November – down 13 per cent from 7,446 sales in November 2009. New listings were also down 13 per cent annually to 8,642.

On a month-over-month basis, the seasonally adjusted annual rate of sales increased for the fourth straight month to 88,100. This rate was substantially higher than the July low of 67,900.

"The GTA resale market has tightened since the summer. Healthy market conditions continued to support growth in the average selling price," said Toronto Real Estate Board President Bill Johnston.

"Sales through the first 11 months of the year were down only marginally compared to the same period in 2009. We remain on track for one of the best years on record under the current TREB market area," continued Johnston.

The average selling price for November transactions was $438,030 - up five per cent compared to November 2009.

"The average selling price in the GTA is affordable. A household earning the average income can comfortably cover the mortgage payments on an average priced home. Expect the average selling price to grow at a moderate pace over the next year," said Jason Mercer, TREB's Senior Manager of Market Analysis.

GTA Housing Market Conditions Remain Healthy in September

October 5, 2010 -- Greater Toronto REALTORS® reported 6,310 sales through the Multiple Listing Service® (MLS®) in September 2010. This represented a 23 per cent decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up four per cent compared to the first three quarters of 2009.

"The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA," said Toronto Real Estate Board President Bill Johnston.

The average price for September transactions was $427,329– up five per cent compared to the average of $406,877 reported in September 2009. The average selling price through the first nine months of the year was $429,657.

"Resale homes in the GTA remain affordable," said Jason Mercer, TREB's Senior Manager of Market Analysis.

"It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability," continued Mercer. "The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lending guidelines. This is why the average home selling price has continued to grow."

source: Treb

GTA REALTORS® Report Mid-Month Resale Housing Market Figures

TORONTO, October 18, 2010
Greater Toronto REALTORS® reported 3,012 sales through the Multiple Listing Service® (MLS®) during the first two weeks of October 2010.
This represented a 17 per cent decrease compared to the 3,631 sales recorded during the same period in 2009. Year-to-date sales amounted to 71,988, representing a three per cent increase compared to 2009.
“The GTA resale market is balancing out from the record level of sales experienced in the second half of 2009 and first few months of 2010. This is why sales figures have been lower than 2009 levels in recent months. With this said, it should be noted that the annual rate of decline slowed somewhat through the first two weeks of October,” said Toronto Real Estate Board President Bill Johnston.
The average price for October mid-month transactions was $444,644 – up seven per cent compared to the average of $414,479 recorded during the first 14 days of October 2009.
“We are seeing enough buyers relative to sellers to promote continued price growth year-over-year. People are buying because home ownership remains affordable in the GTA. A household earning the average income can comfortably afford a mortgage on the average priced resale home,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Source: Treb

Stabilization continues in Canadian resale housing market

Sometimes it feels good to be surprised, but Tuesday’s anticipated announcement by the Bank of Canada that it is maintaining its target for the overnight rate at 1 percent was a relief. The global economic recovery is entering a new phase, and the Bank of Canada is now expecting weaker-than-projected recovery across the board, especially in the United States. Canada is not an exception in this shift in projections since July’s Monetary Policy Report, as the Bank continues to expect the economic recovery here will also be more gradual.

Corresponding to the overnight right maintaining at 1 percent, the Bank Rate is set at 1 ¼ percent and the deposit rate is set at ¾ percent. Growth rates in Canada are expected to be 3.0 percent in 2010, 2.3 percent in 2011, and 2.6 percent in 2012. Although a portion of this more subdued profile is a result of the more gradual global recovery, it also takes into account a more subdued expectation for Canadian household spending. The projections around household spending come from the decline in housing activity, and as a result, the increased focus on household debt considerations.
 
Source: PropertyWire

Sales and New Listings Down, Average Price up in July

August 5, 2010 -- Greater Toronto REALTORS® reported 6,564 sales in July – a 34 per cent dip from the record 9,967 sales reported in July 2009. New listings, at 10,825, dropped to the lowest level for the month of July since 2002.

"The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring," said Toronto Real Estate Board (TREB) President Bill Johnston.

Total sales through the first seven months of 2010 were up 12 per cent compared to the same period in 2009.

Notwithstanding the fact that price trends vary at the neighbourhood level in GTA, the average price for July transactions was $420,482, representing a six per cent increase over July 2009. Over the first seven months of 2010, the average selling price was up 12 per cent annually to $432,253.

"Market conditions promoting growth in the average selling price have remained in place. While July sales were down compared to last year, the number of new listings in the marketplace also fell. This means there was enough competition between buyers to exert upward pressure on price," said Jason Mercer, TREB's Senior Manager of Market Analysis.

 

 

Source; Treb

Market More Balanced in June

July 6, 2010 -- Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.

"We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year," said Toronto Real Estate Board President Bill Johnston. "The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates."

The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.

"With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The annual rate of average price growth in the second half of 2010 will be in the single digits."

Median Price
In June, the median price was $367,750, from the $345,000 recorded during June of 2009.

Source: Treb

May Sales Remain High

Greater Toronto REALTORS® reported 9,470 sales through the Multiple Listing Service® (MLS®)

in May, representing a one percent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.

“The pace of transactions slowed in May following record-setting sales in February, March and April,” said Toronto Real Estate Board President Tom Lebour.

“Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes.”

New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 up 13 per cent compared to the average of $395,609 recorded in May 2009.

“The gap between listings and sales has widened, which means there is more choice for buyers,”said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The annual rate of price growth will slow in the second half of 2010, from the current double digit pace into the single digits.”
 
Median Price
In May, the median price was $376,750, from the
$337,000 recorded during May of 2009.

Source: treb

What's Taxable Under the HST and What's Not?

• According to Ontario Ministry of revenue there are a lot of products and services on which we already pay the RST and GST. For these products, like cable and phone services, new cars and adult clothing, there won't be a change. On July 1, 2010, instead of paying 13 per cent tax to two different governments (8 per cent provincial and 5 per cent federal), there will be one tax — still 13 per cent, collected by the federal government.
• No RST now, no HST after July 1, 2010. There are some other items now that have no sales tax on them, such as basic groceries, municipal transit and prescription drugs. On July 1, 2010, there will still be no HST charged on these items.
• Point-of-sale rebate, Other products will be eligible for a point-of-sale rebate for the provincial part of the HST. This means you will only pay the 5 per cent federal portion of the HST. These include print newspapers, books (including audio books), diapers, children's clothing and footwear, children's car seats and booster seats, feminine hygiene products, and qualifying prepared food and beverages sold for $4.00 or less.
• No new tax for 83 per cent of products and services. In total, about 83 per cent of products and services purchased by consumers will see no new tax. Only 17 per cent will see a new tax, things like personal and professional services such as hairstyling and legal fees, as well as energy costs including home heating fuel and electricity.

Here are examples of common products and services and how they will be affected by the HST.

Source: Ontario Ministry of Revenue

GTA REALTORS® Report Mid-Month Resale Housing Figures

Greater Toronto REALTORS® reported 4,887 sales through the Multiple Listing Service® (MLS®) during the first two weeks of May.

This represented a seven per cent increase compared to the 4,561 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 10,059.

“The average household looking to purchase a home continued to benefit from affordable opportunities in the first half of May,” said Toronto Real Estate Board President Tom Lebour.

"The number of done deals will remain high for the remainder of 2010, but will dip from record levels.”

The average price for May mid-month transactions was $448,641 – up 12 per cent compared to the average of $399,811 recorded during the first 14 days of May 2009.

"The total number of homes currently listed in the GTA is now within a more normal range. As buyers benefit from more choice in the second half of 2010, average selling prices will grow at a slower pace," said Jason Mercer, TREB's Senior Manager of Market Analysis.

For more info click here

Source: Treb

How will HST affect your real estate transaction?

The Ontario Government recently enacted legislation which will implement the HST Tax. This new tax will take effect on July 1, 2010. The HST tax will effectively combine the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new "harmonized" total tax of 13% percent. This new tax will be applicable to many real estate services which hitherto only had one or the other tax applied.

• there is no HST tax payable on the sale of a resale home (residential).
•  home buyers and sellers will have to pay extra tax on a range of services associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services.

In a nutshell, after July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay - currently there is only the 5% percent GST payable on this fee. Your lawyer's fee will also be subject to the 13% percent HST, as will the cost of a Condominium Status Certificate.

If you are a buyer, any Home Inspection you pay for will be subject to the 13% percent HST. And so will the cost of movers hired. In addition, the cost of the CMHC premium for "high-ratio" mortgages has traditionally been taxable for PST - this amount will now be taxable for the full 13% percent HST.

 

As legal fees, home inspection fees, mortgage insurance premiums, and real estate commissions become subject to additional taxation under the new Harmonized Sales Tax regime, housing affordability will suffer.

Current owners in urban areas will be impacted as well; condo fees are expected to increase 5-7% as management fees, concierge services and utilities will be taxed under HST.

Renters will be hit as landlords pass on the higher costs soon to be associated with electricity, gas, cable, maintenance, property management, and other services.

The Federation of Rental-Housing Providers of Ontario (FRPO) estimates an increase of 2.5% to 3.0% in residential rents as a result of the HST.

The Cost for "New" Housing (not applicable to resale):

Under the new proposal, all price ranges would receive a 75 percent rebate on the provincial portion (75percent of 8percent) on the first $400,000. Up to a maximum rebate of $24,000.

New homes under $400,000 would not be subject to this additional new tax.

The new HST tax will not apply to sales of new homes where ownership or possession is transferred before July 1st, 2010.

Housing Market Charts

Along with the monthly Market Watch release there are a series of charts summarizing key residential statistics for the GTA.

Market Watch

April Experiences Record Number of Buyers and Sellers

May 5, 2010 -- Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries.

“The GTA resale market is functioning properly. Sales were high as buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour. “More balanced market conditions will result in sustainable rates of annual price growth in the second half of 2010.”

The average price for April transactions was $437,600 – up 13 per cent compared to the average of $385,641 recorded in April 2009.

Source: Treb

Keep Warm and Cozy

A heating system converts fuel into heat which then flows through a house. The efficiency of a heating system depends on the amount of fuel consumed to meet heating needs. Using less fuel means your system has increased its energy efficiency.

Check your heating system first

One way to maximize output using the least amount of fuel is to reduce air leakage. Before deciding to replace or upgrade your present heating system you will have to consider how much of your present system can be saved. Are the heating ducts or water distribution pipes in good condition? Oil and gas fired furnaces require a constant supply of air to operate, because fire needs oxygen to burn. An air-starved furnace can cause carbon monoxide to build-up in quantities that can be dangerous.

Additional ventilation can sometimes be required in houses with heating systems that require little or no indoor air, electrically heated homes, homes with chimney-free condensing furnaces, or houses with a fuel burning furnace enclosed in a room with air for combustion from the outside.

Improve heating efficiency

If you decide to change your system, you'll have to consider what type of fuel you want to use. Cost and availability of fuel is usually the deciding factor. If you're keeping your present system, here are a few ways you can improve its operation.

• Hot air ducts are notorious wasters of heat and money. If your basement feels too warm, too much heat is probably seeping out of your ducts. You can seal all joints and seams in the ducting with vinyl duct tape. With forced air-systems, the furnace filters should be changed regularly.

• With hot water systems, the exposed accessible heating pipes should be insulated with flexible foil- faced fiberglass at least 19mm thick. If there is an aquastat on the boiler, (a water temperature control) the water temperature can be reduced to about 49 Celsius of 120 Fahrenheit during warmer parts of the heating season. (If your boiler is made of stainless steel, or if your main boiler also heats your domestic hot water, you shouldn't reduce the water).

• "Downsizing" your oil furnace can reduce fuel bills by seven to 10 per cent. Retention head burners mix the air and oil spray very quickly which permits the combustion of oil with less air. Less air entering the burner means that less heat escapes out the chimney.

If you think you might be having problems with household air supply, contact a registered heating contractor for advice.

source: OREA