GTA REALTORS® Report November Resale Housing Market Figures

TORONTO, December 3, 2009 - Greater Toronto REALTORS® reported 7,446 sales in November – slightly more than double the November 2008 result when GTA home sales had dipped markedly due to the economic downturn. Year-to-date sales were up 14 per cent compared to the first 11 months of 2008.

“This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006,” said Toronto Real Estate Board President Tom Lebour. “Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.”

The average price for November transactions was up 14 per cent year-over-year to $418,460. The average price year-to-date was up four per cent to $394,464.
“Very strong annual growth rates for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter," according to Jason Mercer, TREB's Senior Manager of Market Analysis. “As we move into the spring, growth rates will move to more sustainable levels.”

Sales still hot despite cooler weather

November 20, 2009 -- Winter may be fast approaching but there is certainly no cooling trend when it comes to the Greater Toronto Area resale housing market.

In the first two weeks of November, Greater Toronto REALTORS® reported 3,666 sales, an 84 per cent increase compared to the same period a year ago. The average price of GTA homes sold during this timeframe also grew, by 10 per cent, to $415,066. Condominium activity throughout the GTA was even more extraordinary. Sales of this housing type increased 90 per cent to 959 transactions, with an average price of $296,664, up 15 per cent year over year.

The City of Toronto experienced the highest increase in sales volumes while average price appreciation was consistent throughout both areas.

The number of sales in the City of Toronto increased by 88 per cent compared to the same period a year ago, reaching a total of 1,560 transactions. The average price meanwhile, climbed to $441,893, a 10 per cent increase from mid-November last year. Condominium sales in Toronto almost doubled to 674 transactions, an increase of 97 per cent from a year ago. They sold at an average price of $317,939, up 13 per cent year-over-year.

In the 905 Region sales activity was up 81 per cent over the first half of November 2008, totaling 2,106 transactions. The average price of a 905 Region home was $395,195, also up 10 per cent from a year ago. Condominium transactions in the 905 Region increased 75 per cent from mid-November last year, to 285 sales. They fetched an average price of $246,351, up 20 per cent year-over-year.

Year-to-date sales throughout the GTA have increased 11 per cent over last year, to a total of 78,233 transactions, putting 2009 on track to finish with some of the best years on record. The average GTA house price has also increased three per cent year-to-date, to $393,180.

While it’s reasonable for sales in the first half this month to be strong as compared to the same period a year ago, when the market experienced a marked decline, such strong price recovery is particularly significant.

I discussed this characteristic of the market with the Toronto Real Estate Board’s Senior Manager of Market Analysis Jason Mercer, who pointed to affordability as an important factor.

“Average home prices recovered quickly in the GTA compared to other centres in countries like the United States because the average priced home remained affordable relative to average household incomes. As consumer confidence in economic recovery improved in the spring, home ownership demand and home prices recovered quickly.”

According to Mercer, the outlook for next year’s spring housing market is also favourable.

“Expect home ownership demand to remain strong in 2010. Market conditions will balance out next year as more homeowners react to the strong sales and price growth reported in the second half of 2009 and list their home. The average resale home price will grow at a sustainable rate next year.


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The Toronto Real Estate Board President's Commentary on the Market

November 13, 2009 -- Despite the fact that the holiday season is fast approaching, the Greater Toronto Area resale housing market continues to thrive. After a brief but marked decline, activity has been very strong since May. Given the profound impact that real estate has on the greater economy, we have experienced an incredibly fortuitous turn of events. With each passing month, this remarkably speedy recovery has taken hold and I’m happy to report that the outlook for the GTA resale housing market is very promising.

I recently attended a Canada Mortgage and Housing Corporation conference aptly titled Road to Recovery, which offered countless reasons as to why the market outlook is bright.

Special guest speaker Joe Berridge, a founding partner in the planning and urban design firm Urban Strategies, made one of the most noteworthy points, indicating that Toronto is now considered a global city, ranking amongst the top 15 Alpha cities in the world. He pointed to several of our city’s most positive characteristics including Toronto’s cultural diversity, acclaimed universities and international airport.

Given that property in the GTA is much more affordable than in the western world’s other high ranking Alpha cities like New York, London and Paris, the opportunity to invest in luxury homes and condominiums here is very appealing to off-shore buyers.

Of course, local buyers also recognize our city’s excellent investment opportunities and in recent years, many have bought condominiums at the pre-construction stage. As these units begin to reach completion within the next year, some investors may choose to list them for sale immediately, which will help to balance the market.

This effect should not be any reason for concern though, given that GTA demographics support a strong outlook for the condominium market. Between the 2001 and 2006 Censuses, the largest population growth was seen for couples without children and one-person households – groups that generally support an increase in condominium construction.

In light of these statistics, high-density land purchases have been on the rise throughout the GTA, particularly in York Region. Between 2006 and 2008, 40 per cent of the GTA’s high-density land purchases were made in the City of Toronto, with York Region following closely behind at 32 per cent, while 13 per cent were made in Peel Region.

Low-rise housing has also recovered from the very bleak period in the last quarter of 2008 and the early part of this year, and immigration has continued to play an important role. Drawn by our city’s cultural mix, diverse employment opportunities and range of housing stock, nearly 100,000 immigrants move to the GTA each year. Given that the majority of these newcomers buy a home within 10 years, the demand for low-rise housing will most certainly continue as well.

Sales of newly constructed low-rise housing have also increased in recent months, which will result in greater housing starts next year. In the long term though, land supply and infrastructure constraints will limit the potential for low-rise development in many areas like York Region.

In its presentation, CMHC also identified several Toronto neighbourhoods that are ripe for gentrification like W06 on the lakeshore, as well as E06 and E04 in the East and North-East Danforth area. These areas contain single detached homes selling for at least 10 per cent less than the GTA average, and are adjacent to districts with above-average selling prices. There’s no doubt that regardless of whether your clients opt for a low-rise or high-density dwelling, a successful purchase always comes down to that old adage: location, location, location.

Given this year’s strong resurgence, we can expect homeowners who have taken note of this activity to boost listings in 2010. As I mentioned at the outset of this message, all of this activity is good news for the broader economy because increased sales translate to increased spending on renovations and professional services, both prior to, and subsequent to each transaction.

If you have questions about market activity or any of TREB’s range of services, please feel free to write to me anytime at trebpres@trebnet.com

Tom Lebour
President

Housing Activity to Strengthen in 2010

OTTAWA, November 2, 2009 — Housing starts have started to recover and are expected to continue to improve in the second half of 2009. Starts are expected to reach 141,900 for the year and will increase to 164,900 for 2010, according to Canada Mortgage and Housing Corporation’s (CMHC) fourth quarter Housing Market Outlook, Canada Edition* report.

“We expect housing markets across Canada to strengthen leading into and over the course of 2010 as economic conditions improve”, said Bob Dugan, Chief Economist for CMHC.

“Demand for existing homes has rebounded since the beginning of the year. In addition, lower inventory levels characterize both the new and existing home markets. As a result, stronger housing demand will be reflected in higher levels of housing starts in 2010”, said Mr. Dugan.

The strong pace of MLS® 1 sales seen in the second and third quarters of this year reflects, in part, activity that was delayed in the previous two quarters and is not likely to be sustained. The level of sales is expected to move back closer in line with anticipated economic conditions. As a result, existing home sales, as measured by the Multiple Listing Service (MLS®), will reach 441,300 units in 2009 and increase to 445,150 units in 2010. The average MLS® price is expected to be $312,950 in 2009 and $324,500 in 2010.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

* The forecasts included in the Housing Market Outlook are based on information available as of October 1, 2009. Where applicable, forecast ranges are also presented in order to reflect economic uncertainty.

1 The term MLS® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA). Data are for 10 provinces.


Information on this release:

Charles Sauriol
CMHC
Media Relations
613-748-2799
csauriol@cmhc-schl.gc.ca

GTA REALTORS® REPORTING OCTOBER MID-MONTH HOUSING STATISTICS

TORONTO, October 19, 2009 - In the first two weeks of October, Greater Toronto
REALTORS® reported 3,631 sales – up 34 per cent compared to the first two weeks of
October 2008. The average price for these transactions was up 17 per cent year-overyear to $414,479.

"While demand for existing homes has remained strong, it is important to recognize the context of current statistics. We are now making comparisons to the fall of 2008 when we experienced a marked decline in sales and average price," said TREB President TomLebour.

Year-to-date sales, at 69,964 are up six per cent compared to 2008. Average price, at
$389,687, is up by two per cent.

"Tight market conditions throughout the GTA will continue to exert upward pressure on
home prices in the fourth quarter," explained Jason Mercer, TREB's Senior Manager of
Market Analysis. “Expect more listings in 2010 as home owners react to the price gains experienced in the second half of 2009.”

Market Data Graphs

No Sense of Harmony.... HST to hit Ontarians Hard

September 25, 2009 -- Starting July 1, 2010 Ontarians can expect to pay a harmonized sales tax (HST) rate of 13% on a long list goods and services that were previously exempt from the 8% Provincial Sales Tax (PST). While the impact of the tax will be felt by all Ontarians, the province’s 3 million homeowners and the thousands who buy and sell a home every year will be hit particularly hard by this latest tax grab.

As real estate professionals, REALTORS® know how important the dream of homeownership is to Ontario families. Unfortunately, thanks to the forthcoming HST, that dream is going to become much more expensive. After July 1, 2010, every residential real estate transaction in Ontario will face a significant tax increase. Specifically, home buyers and sellers can expect to pay 8% more on legal fees, appraisals, real estate commissions, home inspection fees, moving costs and the provincial government’s forthcoming system of mandatory home energy audits. According to the Ontario Real Estate Association (OREA) Ontarians will pay, on average, an additional $1,449 in new taxes on their next residential real estate transaction.

If it’s not bad enough that the new tax will increase the cost of buying a home, then consider the impact on the costs of owning and living in that home after it’s been purchased. Specifically, a HST will add hundreds, potentially thousands of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. Moreover, a HST will increase the cost of living with 8% more tax on gasoline, personal and professional services, meals under $4, dry cleaning, cab fares, magazine subscriptions, plane tickets, vitamins and cell phone charges.

When added together, the impact of a HST on Ontario family’s disposable income will be considerable. In short, a HST will reduce the people of Ontario’s quality of life by taking more of their hard earned money.

While the Government of Ontario plans to compensate homeowners by offering sales tax transition cheques and modest income tax reductions, these measures will in no way offset this new tax. A onetime payment of $1000 (for a family of four) and a modest $368 reduction in income taxes will do very little to offset the burden of an 8% tax increase on a litany of items in perpetuity.

Certain basic needs, like groceries, prescription drugs, and children’s clothing, would be exempt from the new tax. Unfortunately, the provincial government is not proposing to provide a similar exemption for home purchasing costs. Having a roof over one’s head is about as basic as needs get, and the government should recognize this by ensuring that the costs associated with purchasing a home are exempt from the new tax.

Help oppose this latest tax grab. Visit www.TorontoRealEstateBoard.com where you will be able to access a link that will make it easy for you to write to your MPP and tell them that Ontarians do not need higher taxes on homeownership.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.