Strong August Home Sales in the GTA

September 7, 2011 -- Greater Toronto REALTORS® reported 7,542 sales through the TorontoMLS® system in August – a 24 per cent 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 Toronto Real Estate Board 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 per cent 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."

TREB Latest Response to Competition Commissioner - TREB Holds Firm in Order to Protect Consumers

Toronto, July 8, 2011 – The Toronto Real Estate Board (TREB) today responded to more legal and publicity manoeuvres by the Commissioner of the Competition Bureau.
"The Commissioner is pressuring TREB to make changes to TREB's own property listing system (MLS®) that TREB believes would violate consumer privacy laws, reduce the quality of the system, and diminish protection for consumers who list their homes in the Greater Toronto real estate market," said Toronto Real Estate Board President Richard Silver.
TREB believes strongly in open competition within a housing market where consumers can be ensured privacy and quality. TREB has recently taken steps to provide secure password-protected websites designed to allow consumers to search and display MLS® listing data.
The Commissioner is pressuring TREB to go further to release private data about individual consumers openly on the internet. TREB believes that would be reckless and, in fact, a violation of the law.
"TREB appreciates that the Commissioner has a job to do, but TREB is the wrong target," said Mr. Silver. "The Commissioner obviously has recognized that her initial Application back in May was faulty. Instead of working with TREB to find a practical solution for consumers, the Commissioner has today decided to pursue an additional legal process that will further delay improvements and further disadvantage consumers."
TREB will continue to work on behalf of its Members and consumers to ensure the highest quality of safe and secure service to consumers within the Greater Toronto real estate market.

Source: Treb

TorontoMLS® Sales and Average Price Up in June

Greater Toronto REALTORS® reported 10,230 home sales through the TorontoMLS® system in June 2011 – up 21 per cent 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 six months of 2011 amounted to 48,189 – down by 4.5 per cent 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 per cent increase over June 2010. Through the first six months of the year, the average selling price was $467,169 – almost an eight per cent 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.

Canadians Showing Restrained Optimism Regarding Economy

According to a new poll released by Economic Club of Canada/POLLARA, Canadians are showing a restrained optimism in terms of the economy.

The poll shows that, although there is an increase in confidence on economic growth,Canadians are less positive about the state of the economy as whole at the beginning of 2011 than they were at the beginning of 2010.

30% of Canadians indicate that at economy is in a state of moderate growth heading into 2011, which is compared to 17% in December 2009; worries about a severe recession happening have fallen from 17% in December 2009 to less than 10% in December 2010.
However, only 38% of Canadians surveyed feel the Canadian economy will improve in the next twelve months, compared to 54% who felt that way in December 2009. One in five Canadians feel the Canadian economy will actually worsen in 2011, compared to 14% who felt that way one year ago.

"Canadians were feeling overly bullish on economic recovery this time last year," said Michael Marzolini, Chairman of POLLARA "But clearly, these lofty expectations in Canada and around the world have not yet been met, and Canadians are now more measured in their feelings about the economy."

Results for this poll were taken from 2560 respondents on POLLARA's online panel between December 10-15, 2010, and weighted by age, gender and region to ensure they are based upon a representative sub-section of Canada's population. The margin of error in such a survey is 1.9%, 19 times out of 20.

Although there has been a slight dip in economic optimism, Canadians, for the most part are feeling more optimistic about Canada's economy than in other locations globally. 42% of Canadians feel the US economy will get worse in 2011, compared with 19% who feel it will get better. Regarding the Global economy, 43% of Canadians feel it get worse over the next year, compared to 20% who feel the Global economy will improve.

“Canada's economic performance has not gone unnoticed by Canadians," said Economic Club of Canada President Mark Adler. "Compared to the rest of the world, Canadians clearly feel more secure with their own domestic economic performance and its prospects for the future."

Canadians listed their top economic concerns as: the cost of living (78%), Government deficit and national debt (72%), having enough money to retire (70%), healthcare costs (69%), value of their investments (57%), and own family debt load (55%).

Written by Newsroom,  Propertywire

Monday, 10 January 2011

Third Best Year for Existing Home Sales

January 6, 2011 -- Greater Toronto REALTORS® reported 4,395 existing home sales for the month of December, bringing the 2010 total to 86,170 – down by one per cent compared to 2009.

"Market conditions were anything but uniform in 2010. We went from super-charged sales activity during the first four months of the year, to a marked drop-off in transactions in the summer and then in the fall saw sales climb back to levels that are sustainable over the longer term," said TREB President Bill Johnston.

"New Federal Government-mandated mortgage lending guidelines, higher borrowing costs and misconceptions about the HST caused a pause in home buying in the summer. As it became clear that the HST was not applicable to the sale price of an existing home and buyers realized that home ownership remained affordable, market conditions improved," continued Johnston.

The average home selling price in 2010 was $431,463 – up nine per cent in comparison to the 2009 average selling price of $395,460. In December, the average annual rate of price growth was five per cent.

"At the outset of 2010, we were experiencing annual rates of price growth at or near 20 per cent. This was the result of extremely tight market conditions coupled with the fact that we were comparing prices to the trough of the recession at the beginning of 2009," said Jason Mercer, TREB's Senior Manager of Market Analysis.

"Balanced market conditions in the second half of 2010 resulted in more moderate home price appreciation," continued Mercer. "Expect the average selling price to grow at or below five per cent in 2011. With this type of growth, mortgage carrying costs for the average priced home in the GTA will remain affordable for a household earning an average income."

Median Price

In December, the median price was $355,000, from the $349,000 recorded during December of 2009.

Source: Treb

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