REALTY LEADERS LTD. | 24h.416-261-9111 DANIELLA KNEZEVIC - The Art Of Finest Real Estate | Best Mortgage Deals
DANIELLA KNEZEVIC
 
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all". Dale Carnegie

MARKET WATCH NEWS


 STATISTICS    MORE NEWS     ♦ hot 016 NEWS 

 

SPRING MARKET CAPPED OFF WITH STRONG JUNE

July 6, 2016 - Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 12,794 residential transactions through TREB's MLS® System in June 2016. This result was 7.5 % hi

gher than the 11,905 sales reported in June 2015. In line with the prevailing trend so far this year, the number of new listings was down by 3.8 %.

 "As I start my term as TREB President, we are certainly in an interesting environment for ownership housing. There is no doubt that demand is at a record level, but would-be home buyers continue to face an uphill battle against a constrained supply of listings, which has perpetuated strong price growth. Buyers and sellers alike continue to benefit from the value a REALTOR® brings to a transaction," said Mr. Cerqua.

"As the federal, provincial and local levels of government discuss housing policy in the coming months, issues affecting the lack of supply in the GTA should be of paramount importance. TREB will be undertaking, and making public, results of additional research in the second half of 2016, with the goal of proactively adding to the housing policy discussion," added Mr. Cerqua.

The MLS® Home Price Index Composite Benchmark was up by 16 % on a year- overyear basis. The average selling price for all home types combined was up by a slightly higher annual rate of 16.8 % to $746,546. The single-detached, semi- detached and townhouse market segments led the way in terms of price growth.

"When TREB surveyed consumer intentions for 2016, we found that the majority of GTA households who were likely to purchase a home continued to be pointed towards some form of ground oriented housing. This is why we continue to see strong competition between buyers in many neighbourhoods where supply remains constrained," said Jason Mercer, TREB's Director of Market Analysis.

STRONG SALES GROWTH CONTINUES IN MAY

June 3, 2016 – There were 12,870 home sales reported through TREB’s MLS® System in May 2016. This result represented a new record for the month of May and a 10.6 % increase over the same period last year.

In contrast, the number of new listings was down over the same time frame by 6.4 %. The decline in listings was experienced in both the low-rise and condominium apartment market segments.

“Whether we’re talking about existing homeowners or people looking to purchase for the first time, there is no shortage of buyers in the marketplace today. So, while the record number of home sales through the first five months of 2016 is not necessarily surprising, it does sometimes mask the larger story in the GTA: the shortage of listings, which has resulted in strong upward pressure on home prices,” said Mr. McLean.

The MLS® Home Price Index Composite Benchmark was up by 15 % year-overyear in May 2016. Similarly, the average selling price for all home types combined was up by 15.7 % over the same period. Low-rise home types, which remained in short supply in many GTA neighbourhoods, experienced the strongest price growth. “Widespread competition between buyers of singles, semis and townhouses across the GTA has underpinned the robust annual rates of price growth experienced so far this year. With this said, however, it is also important to understand that tighter market conditions for condominium apartments have resulted in price growth well above the rate of inflation in this market segment as well,” said Jason Mercer, TREB’s Director of Market Analysis.

RECORD FEBRUARY SALES - UP BY 21.1% COMPARED TO FEBRUARY 2015, WITH AVERAGE SELLING PRICE UP BY 14.9% ANNUALLY

March 3, 2016 - Toronto Real Estate Board President Mark McLean announced Greater Toronto Area REALTORS® reported a record number of home sales through TREB's MLS® System in February 2016. There were 7,621 transactions reported this past February – up 21.1 % compared to February 2015.

The number of new listings entered into TREB's MLS® System was also up on a year-over-year basis, but by a lesser 8.2 %. The fact that the annual rate of sales growth outstripped the annual rate of new listings growth shows a tightening of market conditions compared to last year.

"Even after accounting for the leap year day, sales were above the previous record for February set back in 2010. Sales were up strongly from the 15th day of the month onward as well, despite the new federal mortgage lending guidelines coming into effect that require at least a 10 % down payment on the portion of purchase prices between $500,000 and $1,000,000," said Mr. McLean.

Seller's market conditions continued throughout the GTA in February. Strong competition between buyers resulted in a healthy growth in selling prices. The MLS® Home Price Index (HPI) Composite Benchmark was up by 11.3 % year-overyear. The average selling price was up by 14.9 % annually to $685,278.

"Recent polling conducted for TREB by Ipsos suggested that GTA households will remain upbeat about purchasing a home in 2016. Early sales results for January and February certainly support this view. With strong sales up against a constrained supply of listings, home prices continued to trend strongly upward," said Jason Mercer, TREB's Director of Market Analysis.

STRONG START TO 2016, AVERAGE SELLING PRICE UP BY 14.1%
 
February 3, 2016 - Toronto Real Estate Board President announced Greater Toronto Area REALTORS® reported 4,672 residential transactions through TREB's MLS® System in January 2016. This result represented an 8.2 % increase compared to January 2015. It is clear that the handoff from 2015 to 2016 was a strong one. This is not surprising given that recent polling conducted for TREB by Ipsos suggested 12 % of GTA households were seriously considering the purchase of a home in 2016. Buying intentions are strong for this year as households continue to see home ownership as an affordable long-term investment.
 
The MLS® Home Price Index Composite Benchmark Price for January 2016 was up by 10.7 % on a year-over-year basis. The average selling price over the same period was up by 14.1 %.
 
The difference in the annual growth rates for the MLS® HPI and average price was largely due to a greater share of high-end detached homes sold in the regions surrounding the City of Toronto this year compared to last. The MLS® HPI removes the impact of shifts in the share of different property types sold from one year to the next. "Market conditions in January were tighter compared to a year earlier, with an annual increase in sales up against a decline in listings. This is why growth in the MLS® HPI benchmarks continued to be strong, especially for singles, semis and townhouses, where there has been a persistent lack of inventory," said TREB's Director of Market Analysis.
 
Condo Market Tightened in Q4 2015; Average Selling Price Up By 4.1% To $382,079
 
January 27, 2016 - Toronto Real Estate Board President announced that Greater Toronto Area REALTORS® reported 5,595 condominium apartment sales through TREB's MLS® System during the fourth quarter of 2015. This result was up by 12.6 %compared to the same period in 2014.
 
Over the same period of time, the number of new condominium apartment listings entered into TREB's MLS® System was also up, but by a substantially lower annual rate compared to sales, at 3.3 %. The result was tighter market conditions compared to a year earlier. The condominium apartment segment is integral to the overall housing market in the Greater Toronto Area. Over the past decade, the trend has been to increasingly build up due to provincial land use policies. As new projects have completed, a number of investor-held units have been listed for sale on TREB's MLS® System. These units have been absorbed quite rapidly, with enough demand relative to supply to prompt continued price growth.
 
The average selling price for condominium apartments in the fourth quarter was up by 4.1 % year over year to $382,070. Throughout the fourth quarter, the MLS® Home Price Index (HPI) Apartment Benchmark Price was up by between 4 % to 6 % on an annual basis. "First-time buyers account for approximately half of all buyers in the GTA and even more so in the City of Toronto. Condominium apartments represent an important entry point into home ownership for a lot of households. This is a key reason why we experienced continued growth in sales for this home type over the past year," said TREB's Director of Market Analysis.
 
Federal Government Announces Change to Minimum Down Payment Rules 

December 11, 2015 - Federal Finance Minister Bill Morneau announced changes to the rules for government-backed mortgage insurance. Effective February 15, 2016, the minimum down payment for new insured mortgages will increase from 5 % to 10% for the portion of the house price above $500,000. 

The 5 % t minimum down payment for properties up to $500,000 remains unchanged.

For example, on a $625,000 property (2015 average GTA price), Buyers will now require a minimum of 6% down, an additional $6,250.

  • The minimum down payment will increase gradually with the price of a house, varying from 5 per cent for homes priced at or below $500,000 to 7.5 per cent just below $1 million. Properties priced at $1 million and higher will continue to require a minimum down payment of 20 per cent. For example, a person buying a $600,000 property would be required to pay a down payment of 5 per cent on the first $500,000 and 10 per cent on the remaining $100,000, resulting in a total minimum down payment of $35,000, or 5.8 per cent of the total purchase price.

  • The announced measure will take effect on February 15, 2016 and apply to new mortgage loan applications received on February 15, 2016 or later. Any mortgage insurance application received between December 11, 2015 and before February 15, 2016 that does not conform to the measures announced today must have a mortgage in place by July 1, 2016.

  • This measure applies only to new insured mortgage loans. Homeowners with an existing insured mortgage or those renewing existing insured mortgages will not be affected by this policy change as mortgage insurance is good for the life of any existing insured mortgage.

  • The issue of an increase to minimum down payments is something CREA has effectively and successfully fought against since 2011. CREA has communicated concerns with today’s announcement to the government and will continue to advocate on this issue.

More information is available at the Department of Finance website: News Release: http://www.fin.gc.ca/n15/15-088-eng.asp ;  Frequently Asked Questions: http://www.fin.gc.ca/afc/faq/hdpmeh-mfperpc-eng.asp

Record Sales in November 2015, Home Price Index (HPI) Up 10.3%

December 3, 2015 - Toronto Real Estate Board President announced that Greater Toronto Area REALTORS® reported 7,385 home sales through TREB's MLS® System in November 2015 – up by 14 % compared to November 2014. This result also represented the best result on record for the month of November. Sales through the first eleven months of 2015 amounted to 96,401.

"Not only did we see a record sales result for November, but with one month left to go in 2015, we have already set a new calendar year record for home sales in the TREB market area, eclipsing the previous record set in 2007. Sales were up on a year-over-year basis for all major home types, both in the City of Toronto and surrounding regions. This suggests that the demand for ownership housing is widespread, from first-time buyers to long-time homeowners across the GTA," he said.

The MLS® Home Price Index (HPI) Composite Benchmark was up by 10.3 % year over year in November. The average selling price for all transactions was also up by a similar annual rate of 9.6 % to $632,685. Annual rates of average price growth for November and the first eleven months of 2015 were similar, with the strongest rates of increase being reported for low-rise home types, including detached and semi-detached houses and townhouses.

"Demand for ownership housing has remained strong in the GTA throughout 2015, with sales generally increasing at a greater annual rate compared to new listings. This means that competition between buyers has strengthened in many neighbourhoods in the City of Toronto and surrounding regions. The end result has been upward pressure on home prices well above the rate of inflation in most cases," said Jason Mercer, TREB's Director of Market Analysis.

Strong Condo Sales and Price Growth in Q3 2015

October 16, 2015 -- Toronto Real Estate Board President announced strong year-over-year growth in condominium apartment sales reported through TREB's MLS® System in the third quarter of 2015. Sales were up by close to 11 % to 6,586 compared to Q3 2014. New listings entered into the System during the quarter and active listings at the end of the quarter were also up on an annual basis, but by a lesser rate compared to sales. "The condominium apartment market segment has been a key contributor to overall growth in GTA home sales this year. With continued sales growth expected in the fourth quarter, we are on track for a new record in condo transactions through TREB's MLS® System this year."

"As the absorption rate for condos accelerated over the last year, tighter market conditions have resulted in sustained price growth." 

Annual growth in the average and median selling prices and the MLS® HPI Benchmark for apartments exceeded the annual rate of inflation in the third quarter. For the TREB market area as a whole, the average selling price for condo apartments was up by 5.4 %  yearover- year. The median selling price was up by 4.4 %. The MLS® HPI Benchmark for apartments was up by 5.6 % at the end of September.

"The condominium apartment market has certainly benefited from an increase in the supply of listings over the past year. However, through the first three quarters of 2015, growth in sales has actually outstripped growth in listings. This suggests that there was a certain amount of pent-up demand for condominium apartments. As new projects have completed, investor-held units listed for sale have been absorbed very quickly by end users, to the point where price growth has remained strong," said Jason Mercer, TREB's Director of Market Analysis.

Sales and Average Price Up in August

September 4, 2015 - Toronto Real Estate Board President announced that Greater Toronto Area REALTORS® reported 7,998 residential transactions through the TREB MLS® System in August 2015. This result represented a 5.7 % increase compared to 7,568 sales reported in August 2014. On a GTA-wide basis, sales were up for all major home types.

The annual growth rate in new listings was greater than the annual growth rate in sales, but active listings at the end of August were still down compared to last year. This suggests that sellers' market conditions remained in place, especially where low-rise home types like singles, semis and townhouses were concerned.

"Buyers in the GTA remain confident in their ability to purchase and pay for a home over the long term. They see ownership housing as a quality investment that has historically produced positive returns while at the same time providing owners with a place to live in their chosen community," he said.

Both the MLS® Home Price Index (HPI) Composite Benchmark and the average selling price for all home types combined were up substantially in August compared to the same period in 2014, with both increasing by approximately 10 % year-over-year.

"A record year for home sales continued to unfold in August as competition between buyers exerted upward pressure on selling prices. It was encouraging to see annual growth in new listings outstrip annual growth in sales, but we will need to see this for a number of months before market conditions become more balanced," said TREB's Director of Market Analysis

Condo Sales and Price Up in Q2 2015

July 17, 2015 - Toronto Real Estate Board President announced that there were 7,656 condominium apartment transactions reported through TREB’s MLS® system in the second quarter of 2015, representing a yearover- year growth rate of 17 % relative to Q2 2014. Sales growth greatly outpaced growth in listings, with new listings up by a lesser rate of 7.3 % year-over-year and active listings at the end of the second quarter down by 1.3 %. "Much of the new condominium apartment inventory that has been brought to bear on the market in the recent past has been absorbed. In fact, market conditions have tightened with months of inventory trending lower. This suggests that recent condominium apartment completions, while strong from a historic perspective, simply helped satisfy a growing demand for this housing type. Absorption rates and price growth statistics point to a healthy market," said Mr. McLean.

The average selling price for condominium apartments in the TREB market area as a whole grew by 5.8 % year-over-year to $388,066. In the City of Toronto, which accounted for 70 % of sales in the GTA, the average selling price of $416,728 represented a 6.1 % increase compared to Q2 2014.

"Condominium apartment prices have been appreciating at a moderate pace, on average, over the past year, especially when compared to low-rise home types like detached and semi-detached houses and townhouses. However, it is possible that we could see an acceleration in condo price growth in the second half of this year, as growth in sales remains strong relative to growth in listings," said Jason Mercer, TREB’s Director of Market Analysis.

Toronto Now In The Top 10 World's Top Financial Centers 
 
Toronto has risen into the top 10 on a ranking of the world’s most important financial centres.
 
Canada’s largest city is now ahead of Chicago and Boston, becoming the second-most important financial centre in North America, according to the latest Global Financial Centres Index from Z/Yen Group and Qatar Financial Centre.
 
Toronto now ranks eighth in the world, behind Zurich and ahead of San Francisco.
 
“Toronto seems to get stronger over last few years. A number of Toronto rivals have opened up subsidiaries there,” the survey quoted an unidentified New York banker as saying. Montreal rose one spot to 17th place, while Vancouver fell three spots to 18th. Calgary, at 39th, is the only other Canadian city on the 84-city list. London jumped over New York to become the world's number-one financial centre, pushing New York to second place. Those two have been fighting it out for top spot for years, with Hong Kong rounding out the top three.
 
The survey combines data from various other surveys calculating five criterias for a financial centre: Business environment, financial sector development, infrastructure, human capital and reputation.
 
Toronto scores highest on reputation, coming in at eighth place. Its worst score is on human capital, coming in at 11th.
 
Successful people are attracted to successful cities and it is perhaps no surprise that these centers are ranked so high by financial professionals. And I would add, this is also bringing additional positive influence to our already successful luxury downtown financial district condominium real estate market.
 
MID-MAY Resale HOUSING Figures, STRONGEST GROWTH in DETACHED HOMES
 
TORONTO, May 19, 2015 - Toronto Real Estate Board President  announced a 9.6 % year-over-year increase in home sales reported by Greater Toronto Area REALTORS® during the first 14 days of May.  There were 5,655 sales reported in the first two weeks of May 2015 compared to 5,160 sales during the same period in May 2014. “It is clear that demand for ownership housing remains very strong in the GTA.  So much so that, if the pace of sales experienced in the first half of this month is sustained in the second half, we will see record home sales for the month of May,” he said.
 
The average selling price for transactions reported during the first 14 days of May was $ 652,782 for all home types combined – up by 10.7 % compared to the first two weeks of May 2014.  The strongest price growth was experienced in the detached market segment, with the average price up by 13.8 %.
 
“The low-rise market segments, including detached home sales, have been the driver of average price growth in the GTA this year.  As market conditions have tightened, average price growth has remained very strong.  However, while tighter market conditions have been a key factor, so too has been a shift to higher priced homes.  Detached sales growth in the City of Toronto, for example, has been strongest for high-end homes.  The resulting change in the mix of homes sold has also been an important factor in pushing the average price higher,” said TREB’s Director of Market Analysis.

Record Sales in APRIL 2015

May 5, 2015 - Toronto Real Estate Board President announced that Greater Toronto Area REALTORS® reported 11,303 sales in April 2015. This was the highest sales result on record for the month of April and represented a 17 % increase in comparison to April 2014. While sales increased strongly on a year-over-year basis, new listings were up over the same period by a more moderate five per cent. “The record April result clearly points to the fact that a growing number of GTA households view ownership housing as a high quality, long-term investment. This is evidenced by the strong sales growth we have experienced in Toronto and surrounding regions for all major home types. Firsttime buyers and existing homeowners remain very active in today’s market.”

The overall average selling price, which accounts for all homes reported sold by GTA REALTORS® in April 2015, was up by 10 % year-over-year to $635,932. The MLS® Home Price Index (HPI) Composite Benchmark, which estimates the price of a benchmark home with the same attributes from one period to the next, was up by 8.4 % over the same period. The fact that average price growth outpaced growth for the MLS® HPI Composite Benchmark, suggests that a greater share of higher-end homes changed hands this year compared to last.

Irrespective of the indicator used, price growth in the GTA was strongest for low-rise home types. However, the better supplied condominium apartment segment also remained healthy with price growth above the rate of inflation.

“Demand for ownership housing was very high relative to the number of homes available for sale in April. This situation is not expected to change markedly as we move through the remainder of 2015. Until we experience a sustained period in which listings grow at a faster pace than sales, annual rates of home price growth will remain strong,” said Jason Mercer, TREB’s Director of Market Analysis.

Growth in Condo Apartment Sales Continues in Q1

April 17, 2015 - Toronto Real Estate Board President   announced that Greater Toronto Area REALTORS® reported 4,940 condominium apartment sales during the first quarter of 2015. This result represented an 11.1 % increase compared to 4,447 sales reported in Q1 2014. New listings were also up on a year-over-year basis by 6.2 %. The fact that sales grew at a faster pace than new listings contributed to active listings remaining virtually unchanged at the end of the quarter, in comparison to 2014.

"The condo apartment segment represents a very important component of the overall GTA housing market and particularly the City of Toronto, which accounted for 70 % of total condo apartment transactions reported by REALTORS® in the first quarter. Newly completed condo units listed for sale over the past few months have been met with a substantial amount of demand from end users,” he said.

The average selling price for condominium apartments in the first quarter was up by 3.6 %  year-over-year to $363,973. 

“The condo apartment price growth we experienced in the first quarter is indicative of a healthy marketplace where there is enough demand relative to the supply of listings to see moderate year-over-year price growth. In other words, we are very much experiencing balanced market conditions as it relates to condos,” said TREB’s Director of Market Analysis.

Sales and Price Up Year-Over-Year in March 2015

April 7, 2015 - Toronto Real Estate Board President announced that Greater Toronto Area REALTORS® reported 8,940 sales in March 2015. This result represented an 11 % increase compared to March 2014. Sales were up for most major home types, both in the City of Toronto and the surrounding regions. New listings were also up, but by a lesser 5.5 %, indicating tighter market conditions.

“Home sales increased compared to last year as the cost of home ownership remained affordable, with lower interest rates going a long way to mitigate the effect of rising home prices. However, a substantial amount of pent-up demand remains in place, especially as it relates to low-rise market segments. This suggests that strong competition between buyers, which has fuelled strong price growth so far this year, will continue to be experienced throughout the spring,” said Mr. Etherington.

In March, the average selling price for all reported transactions was $613,933 – up 10 % year-over-year. Average price growth was strongest for detached homes in the City of Toronto, at 15.9 %.

"It is clear that seller's market conditions in many parts of the GTA are driving price growth. However, looking at the detached market segment in the City of Toronto in particular, growth in the average selling price outstripped growth in the MLS® HPI. This points to the fact that the mix of detached homes sold this year compared to last has shifted towards more expensive properties," said Jason Mercer, TREB's Director of Market Analysis.

Real Estate Watch: DETACHED HOME PRICE SURGES ABOVE $1M IN TORONTO
 
For the first time, the average selling price of a Toronto (416 area code) detached home has pushed above $1 million. The Toronto Real Estate Board says the 416 average detached price rose 8.9 % year-over-year to hit $1.04 million in February. Supply is tight when it comes to detached homes in the city, and demand is high. Sales are up some 17 % over year.
Apart from the detached market, there were very interesting moves in the townhouse and 
condo segments for the 416. Condo apartment sales were up 12.4 %, but the average selling price fell 0.9 %. Townhouse results were even more jarring; sales were up 10.7 % but the average selling price fell 7 %, year-over-year.
 
BY THE NUMBERS (FEBRUARY 2015, TORONTO REAL ESTATE BOARD)
 
Average price of a detached home in the GTA: $782,166
416 area code: $1,040,018
905 area code: $694,285
 
Average price of a semi-detached home in the GTA: $549,447
416 area code: $702,035
905 area code: $474,292
 
Average price of a townhouse in the GTA: $451,059
416 area code: $507,843
905 area code: $433,127
 
Average price of a condo apartment in the GTA: $355,623
416 area code: $369,655
905 area code: $322,055
http://www.bnn.ca/News/2015/3/4/Real-Estate-Watch-Detached-home-price-surges-above-1M-in-Toronto.aspx
 
ROBUST SALES AND PRICE GROWTH IN FEBRUARY 
 
 
March 4, 2015 - Toronto Real Estate Board President announced that Greater Toronto Area REALTORS® reported 6,338 home sales through the TorontoMLS system in February 2015. This result represented a substantial 11.3 % year-over-year increase compared to February 2014. Large annual increases in transactions were noted for most major home types, in the City of Toronto and surrounding GTA regions. Even with the record low temperatures last month, we still saw an increase in the number of people purchasing homes in the GTA. This speaks to the importance households place on home ownership and the fact that buyers continue to view ownership housing as a quality long-term investment in which they can live.
The overall supply of homes for sale, as measured by the count of active listings at the end of February 2015, was down by 8.7  % compared to the same count in February 2014. This means that market conditions became tighter, leading to more competition between buyers.
The overall average selling price for February 2015 home sales was $596,163– up by 7.8 % compared to the average for February 2014. Driving this increase was the detached market segment. In the City of Toronto, the average detached selling price moved above $1 million dollars for the first time in a calendar month.
“The strong year-over-year price growth we experienced in February points to the robust demand for ownership housing in the GTA, coupled with a constrained supply of homes for sale in some market segments, especially where low-rise home types like singles, semis and townhouses are concerned,” said Jason Mercer, TREB’s Director of Market Analysis.
 
STRONG START TO 2015
 
February 4, 2015 – Toronto Real Estate Board President  announced a strong start to 2015, with robust year-over-year sales and average price growth in January. Greater Toronto Area REALTORS® reported 4,355 home sales through the TorontoMLS system during the first month of the year. This result represented a 6.1 % increase over January 2014. During the sa
me period, new listings were up by 9.5 %. "The January results represented good news on multiple fronts. First, strong sales growth suggests home buyers continue to see housing as a quality long-term investment, despite the recent period of economic uncertainty. Second, the fact that new listings grew at a faster pace than sales suggests that it has become easier for some people to find a home that meets their needs". The average selling price for January 2015 home sales was up by 4.9 % year-overyear to $552,575. The MLS® Home Price Index (HPI) Composite benchmark was up by 7.5 %  compared to January 2014. "Home price growth is forecast to continue in 2015. Lower borrowing costs will largely mitigate price growth this year, which means affordability will remain in check. The strongest rates of price growth will be experienced for low-rise home types, including singles, semis and town houses. However, robust end-user demand for condo apartments will result in above-inflation price growth in the high-rise segment as well," said TREB's Director of Market Analysis.
 
SALES & PRICE GROWTH CONTINUE IN NOVEMBER
 
December 4, 2014 - Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 6,519 residential transactions through the TorontoMLS system in November 2014. This result was up by 2.6 % compared to 6,354 sales reported in November 2013. Through the first 11 months of 2014, total sales amounted to 88,462 - up 6.6 % compared to the same period in 2013.
 
The average selling price for November transactions was up by 7.4 % year-over-year to $577,936. The year-to-date average price was up by 8.4 % to $567,198. The MLS(R) Home Price Index Composite Benchmark price for November was up by 7.7 % compared to a year earlier.
 
While the trend of year-over-year sales growth continued, the supply of listings remained constrained, with active listings at the end of November down in comparison to last year. Monthly mortgage payments remain affordable relative to accepted lending standards. This is coupled with the fact that housing has proven to be a quality long-term investment," stated TREB President.
 
"The robust average price growth experienced throughout 2014 has been fundamentally sound, with demand high relative to supply. Strong competition between buyers has exerted upward pressure on selling prices. Barring a substantial shift in the relationship between sales and listings in the GTA, price growth is expected to continue through 2015," said Jason Mercer, TREB's Director of Market Analysis.
 
PERSONAL, FAMILY & SOCIAL IMPACT ON HOME OWNERSHIP
 
December 5, 2014 - The season’s first snow flakes have arrived at our city, and many of us 
will host various holiday celebrations in the coming weeks, and then again, next summer when athletes and fans from countries throughout the Americas arrive to Toronto for the Pan Am and Parapan Games. Regardless of an events – celebrations and hosting typically brings a very positive return on the investment it demands, and thanks to contributions of each of us in Greater Toronto Area, our city routinely achieves high marks in various global rankings.
 
No matter what part of the city you call home, chances are you’re proud of your neighbourhood, condo community, school, or sports association. Many Torontonians also take individual pride in their home ownership. The various effects, both immediate and long-term, that home ownership has on the people of our city were listed in 2012 Building a Better City Report, by Habitat for Humanity Greater Toronto Area.
 
After studying the experiences of those who had recently transitioned from rental housing to ownership of a Habitat home, the report’s results confirmed what Greater Toronto REALTORS® have long known to be true: home ownership is directly associated with a range of benefits from improved health, to personal safety, to children’s academic performance.  84% of the survey’s respondents reported improvements in asthma after moving into their Habitat home, which has a direct correlation to healthcare spending, and a staggering 76 % reported improvements in their children’s grades, important for children future and also success for our region’s future economic competitiveness. In fact, virtually all of the children in these households, including 19- to 29-year-olds are still pursuing an education. Also significant is a finding related to engaging in the community: half of respondents reported feeling safer walking outside their homes and 72 % of those surveyed reported being friendly with five or more neighbours – a 25 % increase. Recycling efforts also grew: from 50 % prior to home ownership to 98 % thereafter.
 
A report published in 2012 by the National Association of REALTORS® in the United States illustrates quite similar findings.  For example, it indicates that since homeowners tend to remain in their homes longer, their residential stability lends itself to home improvement efforts and civic participation, both of which contribute to the quality of a community and economy growth. It also found that homeowners are happier, healthier and contribute more to their children’s academic achievement.
 
These and a number of other studies confirm that home ownership is not only a wise long-term financial investment; it is one of the most important steps you can take for your family’s overall well-being.
 
GREATER TORONTO REALTORS® - COMMERCIAL MARKET FIGURES
 
TORONTO, December 4, 2014  - in November 2014, TREB Commercial Network Members reported 470,604 leased square feet of industrial, commercial/retail and office space within the TREB market area for which pricing was disclosed on a per square foot net basis. This result was down by 25 % compared to 624,924 sq ft of combined space
leased in November 2013. Almost 80 % of total leased space was accounted for by the industrial market segment.
Year-over-year changes in average lease rates in November for industrial and commercial/retail properties were up to $5.29 per sq  ft net and $22.31 per sq  ft net respectively. The large increase in the commercial/retail segment was
due, in large part, to the existence of a larger property which leased for a below average lease rate in November 2013. Average office lease rates were down 5.2 % to $13.27per square foot net. “The demand for commercial real estate, whether for lease or for sale, can be volatile on a monthly basis when comparing to the previous year. With this said, recent economic data suggests that we could see an uptick in the demand for commercial space moving forward, given that the Canadian economy expanded at a relatively strong pace over the past two quarters. On top of this, the dip in the value of the Canadian dollar vis-à-vis the US could result in increased demand for goods produced in the GTA for export south of the border. This could lead to an increase in the demand for industrial space in the GTA as well,” said TREB President. The number of combined industrial, commercial/retail and office transactions in November was unchanged compared to the same period in 2013. There were 67 total transactions for which pricing was disclosed.
 
Average sale prices, on a per sq  ft basis were actually quite volatile in November, both to the positive and negative depending on the market segment in question. However, it should be noted that average price changes can be the result of both market forces and changes in the type and location of properties sold. In November, price change was largely the result of a change in the mix of properties sold this year compared to last.
 
A HOMEOWNER'S GUIDE TO RADON
 
December 2, 2014 - CREA has developed a guide to help homeowners understand radon. Radon is a naturally occurring radioactive gas that is odourless, colourless, and tasteless. It is produced by the breakdown of uranium found in sediment (soil), rocks, and water. When radon is released
 into the atmosphere, it gets diluted and poses negligible risk to human health. However, if radon accumulates inside a home, it can pose a serious health risk. Radon levels can be reduced cost-effectively, and there are a variety of options available. A qualified radon specialist can help homeowners make an informed decision. For more information on radon and to obtain a copy of “A Homeowner’s Guide to Radon”,
 
 

2014

CONDO SALES GROWTH OUTSTRIPS LISTINGS GROWTH IN Q2

July 18, 2014 - Toronto Real Estate Board President Paul Etherington announced robust results for the condominium apartment market in the second quarter of 2014. Q2 sales were up by 10.4 % compared to the same period in 2013. New listings were up over the same period, but by a lesser 4.4 %. “Condominium apartments represent an affordable entry point into the market for first time buyers. On top of this, some condo properties cater to households looking to move out of their traditional low-rise home, and we are increasingly seeing households choose condos as the place where they will raise a family. This diversity of buyers explains why sales more than kept up with increased listings in the second quarter,” said Etherington.

The average selling price for condominium apartments in the second quarter was up by 5.5 % year-over-year to $367,010. In the City of Toronto, which accounted for 71 % of total sales, the average selling price was $392,739, representing an increase of 5.3%.

“Even though inventory levels for condo apartments have been higher compared to inventory of low-rise home types like singles, semis and towns, there has been enough demand relative to supply to see strong price growth. Even as inventory levels increase due to record occupancies in 2013, we should see enough demand to sustain price growth above the rate of inflation in the second half of this year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

NEW HIGH FOR THE MONTH OF MAY

June 4, 2014 - 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.

“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.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 % compared to 9,946 sales reported in May 2013. The average selling price for these sales was $585,204, representing an 8.3 % year-over-year increase compared to the average price of $540,544 in May 2013.

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 wellabove 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.

MID APRIL MARKET INFO

April 17, 2014 – Toronto Real Estate Board President Dianne Usher announced that the spring market started off on a strong note in the Greater Toronto Area, with a 10.8 % year-over-year sales increase reported by Greater Toronto REALTORS® during the first two weeks of April. Sales through the TorontoMLS system
over this period amounted to 4,541 units.
 
“The robust increase in sales speaks to the fact that home ownership remains affordable in the GTA. The majority of home buyers purchase a home using a mortgage. A household earning the average income in the GTA can comfortably afford a mortgage on an average priced home,” said Ms. Usher. “While the persistent listings shortage in the GTA, coupled with strong demand, has led to a brisk pace of price growth, very low advertised mortgage rates have gone a long way to mitigating the effect of upward trending home prices,” continued Ms. Usher.
 
The average selling price for April mid-month sales was $583,697, representing an annual increase of 11 %. This increase was due to both tight market conditions and a change in the mix of homes sold. At month-end, the MLS® HPI benchmark price will provide more insight into price growth attributable solely to the change in market
conditions. “The overall average price increase was driven by single-detached, semi-detached and townhouse sales in the City of Toronto. There was a substantial increase in higher-end home sales this year compared to last,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

BILLY BISHOP TORONTO CITY AIRPORT PROPOSAL

March 28, 2014 - Porter Airlines is proposing to introduce new service at Billy Bishop Toronto City Airport using the Bombardier CS100 jet.  This new service requires City Hall approval and a vote has been scheduled for April 1st. 
 
Billy Bishop Toronto City Airport can be important element of Toronto’s economy and can represents a significant economic development advantage for Toronto. For this reason, many support plans that will allow this important economic development tool to be utilized to its fullest potential, while respecting the intent of current restrictions that minimize impacts on other waterfront uses.
 
More Information / Action if you also want o voice your support or opposition. More information and opportunities to contact your Toronto City Councillor are available at Porter Airline’s website: www.porterplans.com.
 
SALES AND AVERAGE PRICE UP IN CALENDAR YEAR 2013

TORONTO, January 6, 2014 - Greater Toronto Area REALTORS® reported 4,078 residential transactions through the TorontoMLS system in December 2013 – up by almost 14 % compared to 3,582 sales reported in December 2012.  New listings entered into the TorontoMLS system were down by almost 4 % over the same period. Total sales for calendar year 2013, at 87,111, were up by approximately 2 % compared to 85,496 transactions in calendar year 2012.

The average selling price for December 2013 sales was $520,398 – up by 8.9 % compared to the average of $477,756 in December 2012.  The average selling price for 2013 as a whole was $523,036, which represented an increase of 5.2 % compared to the calendar year 2012 average of $497,130.

“After a slow start to the year, sales growth accelerated to a brisk pace in the second half of 2013.  Despite the inclement weather in December, the year was finished with a respectable gain in transactions compared to 2012.  Looking forward, I believe that home ownership in the GTA will remain affordable as borrowing costs stay low.  The result could be a further increase in sales in 2014,” said Toronto Real Estate Board President Dianne Usher.

“The average selling price will be up again in 2014 and by more than the rate of inflation.  The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA.  Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

 
COLD AND BUSY MID-DECEMBER RESALE REPORT
 
December 17, 2013 - Greater Toronto Area REALTORS® reported 2,483 residential sales through the TorontoMLS system during the first two weeks of December 2013.  This number of transactions represented an 18 % increase compared to 2,104 sales reported during the same period in 2012.  The number of new listings entered into the TorontoMLS system was basically unchanged from a year ago.
 
“The key story in the GTA housing market continues to surround the availability of listings, or lack thereof.  With the cost of homeownership remaining affordable, we have seen a resurgence in buying activity in the second half of 2013.  However, growth in listings has not matched growth in sales.  The result has been more buyers competing for fewer listings.  This is why we continue to experience strong price growth,” said Toronto Real Estate Board President Dianne Usher.
 
The average selling price for December mid-month transactions was up 10 % to $520,379, compared to $471,602 reported for the first 14 days of December 2012.
 
“Inventory levels will remain low in many parts of the GTA in 2014, especially where low-rise home types are concerned, including single-detached and semi-detached houses and townhomes.  Expect above-inflation price growth to continue next year,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.
 
2014 INTEREST RATE OUTLOOK?
 
Most economist predict interest rates will remain low well into 2016, based on moderate job growth, no apparent inflation expected some time soon, and the economy that is largely dependent on trading with US, while their economy is quite sluggish as well. Good news are: 1.) Low interest rates are making it more affordable to buy a home, but can  continue to drive prices up which concerns the Minister of Finance for some time, and 2.) The Federal Government has recently indicated they are not planning any further tightening of mortgage rules. Although, statistics and data indicate that employment income does not rise as quickly as GTA house prices and it appears that the sooner one can own the property the better. For some time it was apparent that the longer one waited to buy the property, resulted in either buying some inferior property, or moving out to a cheaper area. Currently a $500,000 mortgage is approximately $2,000 per month which is a similar to the price of renting a 2-bdrm condo in Toronto.
 
INVESTORS OWN LESS THAN A QUARTER OF TORONTO CONDOMINIUMS: CMHC Report
 
About 23 % of Toronto’s condo stock was being rented out by investor-owners in 2012, the federal housing agency says in its annual Canadian Housing Observer review, released Wednesday, which places a special focus on the national condo market this year, revealing some interesting details. But the review only looks at condos rented via the MLS system and doesn't’t include investor-owned units just sitting empty or rented via free websites like Craigslist or word-of-mouth.
“We think the number is closer to 50 %,” says veteran Toronto development consultant Barry Lyon. “The data they (CMHC) are using has some shortcomings. It’s only part of the story.” Nobody seems to know exactly where buyers, or their money, is coming from, why they are buying and how they intend to use the condo.
 
Local housing experts, economists and realtors also lack hard numbers, but anecdotal evidence suggests at least 40 % of Toronto’s condo market is investor owned and that the number is even higher — as much as 90 % — in some downtown skyscrapers close to transit lines.
 
It’s widely known that investors have helped drive record condo sales across the GTA the last few years and Laberge says those units have been critical to providing rental housing in a growing region where almost no new purpose-built rental apartments have been constructed in decades.As the CMHC report notes, condo construction & ownership has exploded over the last 3 decades, from just 171,000 units in 1981 to 1.6 million in 2011, a rate of growth more than nine times faster than single-family homes. Some 461,000 of those condos were being rented out in 2011, according to the report.
 
Skyscraping condos dominate Toronto’s skyline far more than any other urban landscape in Canada — accounting for about 70 % of the total stock of condominium housing. But, across the rest of the country, highrises account for just 31 % of all condo types, followed by lowrise condo apartment buildings at 36 %  and townhomes and row houses at 23 %. While condos now attract a broad spectrum of buyers, they remain most popular with seniors and young adults: As of 2011, 19 % of condo owners were under the age of 35, and 29 % were 65 or older. Just 16 % were couples with children, says CMHC. Some 42 %  of condo owners live alone. 28 % are couples with no children. And women dominate sales centers: They made up 65 % of all owner-occupied condominiums in 2011, and accounted for 76 % of owners aged 55 or older.
 
INVESTMENT MORTGAGES - CHANGES
 
Some changes: Approximate 4 out of 5 lenders no longer entertain 80% mortgages on rental properties... particularly for Condominium Apartments. Lenders would now mostly advance mortgages between 65-75% of the properties value, with interest rate premium.  Also, the underwriting criteria for mortgaging investment properties can be significantly different from lender to lender. "Equity mortgages" are no longer allowed. These mortgages were for borrowers that have a large amount of cashable assets but little monthly income. New mortgage regulations insist that all lenders need to clearly document the ability of the borrower to pay monthly obligations with their monthly income regardless of how much money they have or assets they own. Having a lot of assets or cash, but little or no documented income, no longer secures a mortgage in Canada. This is where our expertise is crucial in guiding potential investors through their best mortgage options.
 
THE QUESTION: FIXED OR VARIABLE MORTGAGES
 
Most of borrowers rely on news, predictions, statistics, worry, or on logic that rates do fluctuate and therefore periodically rise and drop... Financial institutions historically made more profit with a standard 5-year fixed mortgages, and because of that those mortgages are generally highly preferred and more pushed by most banks - lenders. On the other side, the 5-year variable mortgage is based on expectation that changes between rising and falling rates will stay within expected reasonable range, so that on average less interest should be paid to the Bank. By examining and comparing historic data of variable and fixed mortgage rates, it is clear that variable interest rates helped borrowers save more money, and made less profit for the bank. Also, most variable rate mortgages are also "flexible" mortgages, allowig borrower the ability to convert, once, their variable rate mortgage to a fixed term mortgage, choosing a fixed rate offered at that time, with NO penalties, while with fixed mortgages, borrower is locked in with the same rate until maturity, with penalties required for any rate change. But, there are no right or wrong mortgages, as no one really knows the future, and personal preferences of each borrower.
 
TIGHTER MARKET CONDITIONS DRIVE STRONG PRICE GROWTH 
 
December 4, 2013 - GTA REALTORS® reported 6,391 residential sales through the TorontoMLS system in November, representing a 13.9 % ncrease over the sales result for November 2012. Over the same period, new listings on TorontoMLS were down by 4.4 % and month end active listings were down by 12.1 %.
“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 % 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 % 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.
 
CANADIAN REAL ESTATE ASSOCIATION PREDICTS A STRONG YEAR IN 2014
 
December 16, 2013 - Canada’s largest real estate association says this year is turning out better than expected and 2014 will be even stronger.
The Canadian Real Estate Association’s 2013 sales projections have been increased slightly upward in Ontario and the four western provinces and that prices have been generally firmer than expected.
“Most housing markets are well balanced, including many large urban centres,” said Gregory Klump, CREA’s chief economist.
“Housing price gains are always stronger in places where supply is tight relative to demand, such as we’re seeing in Calgary and in parts of southern Ontario including the low rise market in Toronto.
“Prospects for price appreciation will be limited in parts of Quebec and some areas in the Maritimes, where competition among sellers has increased.”
 
Nationally, CREA is projecting 458,200 homes will be sold through its members this year — eight-tenths of a per cent more than in 2012.
CREA also anticipates next year will be even stronger, with 475,000 homes nationally.
The updated numbers are slightly ahead of a forecast in September by the association that predicted 449,900 homes sold this year and 465,600 in 2014.
CREA said Monday the 2013 projected national average price is $382,200, a 5.2 % increase from last year. The projected national average price for 2014 is $391,100, a 2.5% increase from this year.
CREA says November’s home sales dipped slightly from October but were up substantially from the same month last year, when the industry was going through a soft patch attributed to changes in federal rules for mortgage lenders and borrowers.
Home sales edged 0.1 % lower from October on a seasonally adjusted basis. Actual activity was 5.9 % above November 2012 levels.
 
The national average sale price rose 9.8 % on a year-over-year basis in November while the MLS Home Price Index, which CREA says is a better indicator, rose 4.1 % year-over-year in November.
 
BIDDING WARS PICKING UP BEFORE NEW YEAR AND DRIVING PRICES HIGHER
 
December 16, 2013 - GTA house prices were up 11.3 % over last year’s soft November and sales were up by almost 14 %, lead by sales of detached homes and condos, says TREB.
According to the TREB figures, the average sale price of a home in the City of Toronto, in November was $590,366, up from $516,426 a year ago. That compared to $505,190 in the 905 regions, up from $462,907 a year ago. Condo sales showed somewhat mixed results depending on where people were buying. Sales remained strong in both the city and suburbs, up 12.7 % and 14.2 % respectively.
Resale condo prices were up 10 %, year over year, in the 416 region, but they were down just slightly, 0.4 %, in the 905 regions.
The average sale price of a detached house in Toronto was a whopping $855,188 in November.
 
That means that despite concerted efforts by Ottawa to cool the housing market, the average price of a home in the GTA hit $538,881 last month, up from $484,208 in November of 2012. But what’s really pushing up prices — in addition to exceptionally low interest rates — is the worsening shortage of properties for sale that has plagued the Toronto market for more than three years now. The number of new “for sale” signs dotting the region was down 4.4 % in November, year over year, and month-end active listings were down 12.1 %, according to TREB.
No one really knows why so few folks are listing their homes now. But CIBC deputy chief economist Benjamin Tal believes it’s because moving up has simply become difficult and costly, especially in Toronto, where two land transfer taxes can add tens of thousands of dollars to the cost.
The supply problem has been exacerbated, especially in sought-after city neighbourhoods that are close to transit a
nd good schools, by an unexpected rush of buyers into the market over the summer and fall, who were worried about possible interest rate increase, while at the same time sellers seemed less and less interested to put their homes for sale. That created the lack of inventory in September, October and November which has been influencing the market with bidding wars and rising prices.
 
Some of the sales are, one modest simple semi detached home on Hazelwood Ave, near Pape and Danforth, that sold for more than $135,000 over the asking price, and the other is one detached home on a Davisville and Mount Pleasant area, that had four bids and sold for $951,000, more than $100,000 over the asking price. Houses in the $750,000 to $850,000 range are now considered entry-level homes in some parts of the city, even thought they may need $100-200,000 worth of renovations and updates.
 
Interest rates are also driving the market. Money is so cheap and the inventory is so low that some buyers are saying, if they don’t do what it takes to get the house they like and want, it may be a while until they get another one they like and can afford.

INVESTMENT MORTGAGES CHANGES

Some changes: Approximate 4 out of 5 lenders no longer entertain 80% mortgages on rental properties... particularly for Condominium Apartments. Lenders would now mostly advance mortgages between 65-75% of the properties value, with interest rate premium.  Also, the underwriting criteria for mortgaging investment properties can be significantly different from lender to lender. "Equity mortgages" are no longer allowed. These mortgages were for borrowers that have a large amount of cashable assets but little monthly income. New mortgage regulations insist that all lenders need to clearly document the ability of the borrower to pay monthly obligations with their monthly income regardless of how much money they have or assets they own. Having a lot of assets or cash, but little or no documented income, no longer secures a mortgage in Canada. This is where our expertise is crucial in guiding potential investors through their best mortgage options.
 
THE QUESTION: FIXED OR VARIABLE MORTGAGES
 
Most of borrowers rely on news, predictions, statistics, worry, or on logic that rates do fluctuate and therefore periodically rise and drop... Financial institutions historically made more profit with a standard 5-year fixed mortgages, and because of that those mortgages are generally highly preferred and more pushed by most banks - lenders. On the other side, the 5-year variable mortgage is based on expectation that changes between rising and falling rates will stay within expected reasonable range, so that on average less interest should be paid to the Bank. By examining and comparing historic data of variable and fixed mortgage rates, it is clear that variable interest rates helped borrowers save more money, and made less profit for the bank. Also, most variable rate mortgages are also "flexible" mortgages, allowig borrower the ability to convert, once, their variable rate mortgage to a fixed term mortgage, choosing a fixed rate offered at that 
time, with NO penalties, while with fixed mortgages, borrower is locked in with the same rate until maturity, with penalties required for any rate change. But, there are no right or wrong mortgages, as no one really knows the future, and personal preferences of each borrower.
 
REALTORS® RAISE CONCERNS OVER POTENTIAL PROPOSALS TO MAKE FIRST TIME HOME BUYERS PAY MORE TORONTO HOME BUYING TAX
 
December 11, 2013 - The Toronto Real Estate Board(TREB) is sounding the alarm over a potential proposal that would see first-time home buyers in Toronto paying more Toronto Home Buying Tax (Land Transfer Tax). TREB is responding to published comments indicating that the City's Budget Committee may consider a proposal to eliminate the Toronto Home Buying Tax on the first $200,000 value of a property, for all home buyers, but to also eliminate the current rebate that relieves first-time home buyers from paying Home Buying Tax on the first $400,000 value of a property.
 
 
NEW POLL SHOW INCREASING PUBLIC SUPPORT FOR PHASING-OUT LAND TRANSFER TAX
 
November 25, 2013 - In light of the launch of the City of Toronto's 2014 budget-setting process, the Toronto Real Estate Board (TREB) has released the results of new public opinion research that shows a strong majority of Torontonians, 69 %, support a phase-out of the Toronto Land Transfer Tax, up four points from May 2013.
 

HOME PRICES IN THE GTA CONTINUE TO CLIMB DESPITE OTTAWA'S EFFORT TO COOL DOWN REAL ESTATE MARKET

 
TORONTO, October 3, 2013 - Greater Toronto Area REALTORS® reported 7,411 residential sales through the TorontoMLS system in September 2013, representing a 30 % 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 1 % 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 % year-over-year.  Through the first three quarters of 2013, the average selling price was $520,118 – up by over 4 % compared to the first nine months of 2012.
 
Condos continued a surprising surge, which started this past summer, with sales up 28.8 % year over year — up 31.5 % in the City of Toronto and 22.3 per % in the 905 regions. Average condo sale prices in September, however, were down 3.7 % in the city (416 region) to an average of $363,149, but up 2.9 % in the suburbs (905 regions) to an average of $290,239. That resulted in an almost 2 % decline in condo prices overall across the GTA from September of 2012 to the same month this year.
 
Detached sales were up almost 34 % year over year across the GTA, and prices up 7.9 %, bringing the average sale price of a detached home in the 416 region to $856,169 and $608,866 in the 905 regions, says TREB.
 
Semi-detached sales were up more than 20 %, with average prices hitting $616,049 in the city and $405,920 in the suburbs.
 
Townhouse sales climbed by almost 31 %. The average 416 townhouse sold for $455,518 in September and $388,727 in the suburbs, up 9.7 % overall from September of 2012.
 
The MLS® Home Price Index composite benchmark for September was up by 4 % 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.
 

U.S. GOVERNMENT SHUTDOWN DRIVING CANADIAN MORTGAGE RATES LOWER, FOR NOW

The Huffington Post Canada  |  By Daniel Tencer | http://www.huffingtonpost.ca/2013/10/08/mortgage-rates-canada-_n_4064341.html?ref=topbar

Oct. 8, 2013 - The U.S. government shutdown has had an interesting side effect for Canada: It has held out the promise of lower mortgage rates, and therefore a stronger housing market.
 
Not that the housing market needs much help these days. Housing starts jumped 5.3 % in September, according to data released Tuesday by Canada Mortgage and Housing Corp., beating analysts’ estimates. All parts of the country saw rising starts except Ontario, where they fell 15.6 %.
 
September house sales in the two most closely-watched markets, Toronto and Vancouver, are up 30 % and 63.8 % respectively, according to those cities’ real estate boards (though there is reason to doubt those numbers).
 
But the housing market could see even more heating, thanks to the U.S. shutdown. That’s because, with the economic uncertainty, investors are flocking to bonds, driving down bond yields. Fixed-rate mortgage rates are tied to bond yields, so mortgage rates are going to come down as a result, according to RateSupermarket’s mortgage outlook panel.
 
Of course the flipside of lower mortgage rates is higher house prices, and Canadian municipal leaders are getting worried about the erosion of affordability, the National Post reports.
 
In a letter to Prime Minister Stephen Harper, Claude Dauphn, president of the Federation of Canadian Municipa
lities, urged the federal government to help address the shrinking supply of affordable housing. “Housing costs and, as the Bank of Canada notes, household debt, are undermining Canadians personal financial security, while putting our national economy at risk,” Dauphin wrote.
 
But all bets are off if the gridlock in the U.S. Congress extends past the debt ceiling deadline on Oct. 17. If the U.S. were to suddenly default on its debt, it would “devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression,” Bloomberg reports, citing dozens of experts. So the good news for mortgages could be short-lived indeed.
 
DEMAND FOR REALTORS IS INCREASING 
 
Aug 7, 2013- You may or may not be aware of this fact, but more people are choosing to use a real estate agent than ever before. In correlation to the increased demand for real estate agents is the so-called democratization of information – the opening of the web, a.k.a. the Google factor, and the general trend of consumers choosing how and when they purchase products. When you analyze the statistics surrounding Internet adoption and demand for real estate agents, an untold story unfolds.
 
Let’s start with the number of home buyers working with a Realtor, as published in a recent U.S. report issued on Realtor.org. In 2001 about 69 % of all home buyers worked with a real estate agent. Dramatically, by 2012 that number increased to 89 %, according to the National Association of Realtors (NAR). That’s a whopping 20 % increase.
 
That’s a good news story for Canadian real estate. After an onslaught of news about an uncertain economy over the last four years, along with a general opening up of information online, you would be forgiven for assuming that Realtors’ future in the marketplace might be at risk. The numbers are not reflecting that, and the story doesn’t stop there.
 
The increased demand for real estate agents may be related to a surprising factor.  A growing demographic of home buyers is adopting the Internet and technology in their home-buying process. An analysis of the 2012 Profile of Home Buyers and Sellers released by NAR found that home buyers using the Internet were more likely to work with a real estate agent. Twenty per cent more likely, to be exact. This is counter to a common assumption that the more access a home buyer has to information online, the less they will need to work with a real estate agent.
 
In reality, “91 % of home buyers who used the Internet to search for a home purchased through a real estate agent, as did 71 % of non-Internet users,” says the study.
 
Data released by the Parliament of Canada reveals that since 2000, Internet usage in Canada increased by 35 per cent. Today 80 % of Canadian mobile phone users are on a smartphone and 93 % of Canadians go online for product information. These latest statistics divulge an interesting outcome. With the ability to search for homes online Canadians have spoken through their actions. They like using the Internet to search for information about property and real estate agents when purchasing.
 
Perhaps the greatest value a real estate agent provides for the home buyer is a sense of security that they are making the right decision and that the deal is put together correctly. With the increase in accessible information online, it is likely home buyers are realizing just how much information is available and are recognizing the need for an expert in the purchasing process
 
According to NAR, 87 % of buyers surveyed viewed real estate agents as a source of valuable 
information. Another study by Mustel Group Market Research found home buyers believe that the greatest value a real estate agent provides is dealing with the details and negotiating the best price. One can conclude from all this that with the rise of technology, Canadian home buyers are embracing real estate agents. That’s not to say there isn’t uncertainty. But the numbers expose strong demand for real estate agents from the most promising of all consumers groups, the emerging home-buying demographic. Canada’s youngest home buyers using the Internet are also the most likely to work with a real estate agent. The future of Canada’s real estate agents is remarkably good.
 
By Jonathan Whiting. Jonathan Whiting is a founding partner of StreetText.com, a text message and web marketing platform that serves Canadian real estate agents and mortgage brokers coast to coast. REM Online
 
TORONTO RESIDENTS SUPPORT ELIMINATING LAND TRANSFER TAX 
 
Aug 6, 2013- A poll conducted for the Toronto Real Estate Board (TREB) is showing strong public support for eliminating the city’s Land Transfer Tax.
“Torontonians know that the land transfer tax is bad for our city, and they want City Council to follow through on commitments to phase it out,” says Ann Hannah, president of TREB.
 
The poll, conducted by Ipsos Reid, found that:
-  Two-thirds of Torontonians support plans to eliminate the Toronto Land Transfer Tax;
-  Support for eliminating the Land Transfer Tax with a gradual phase-out    approach, as suggested by Mayor Rob Ford, is strong (65 per cent);
-  90 per cent of recent home buyers feel that they received little or no added value in municipal services for the Land Transfer Tax that they paid to the city;
-  74 per cent of home buyers in Toronto and the Greater Toronto Area say they are more likely to purchase a home outside of Toronto specifically because of the Toronto Land Transfer Tax;
-  65 per cent of home buyers who currently live in Toronto say they are more likely to leave Toronto when they purchase their next home,  specifically because of the Toronto Land Transfer Tax.

 

MORTGAGE RULES CHANGING

 
June 21, 2012 - Jim Flaherty, Minister of Finance, announced four measures for new government-backed insured mortgages with loan-to-value ratios of more than 80 %:
  • Reduce the maximum amortization period to 25 years from 30 years.
  • Lower the maximum amount Canadians can borrow when refinancing to 80 per cent from 85 per cent of the value of their homes.
  • Fix the maximum gross debt service ratio at 39 per cent and the maximum total debt service ratio at 44 per cent.
  • Limit the availability of government-backed insured mortgages to homes with a purchase price of less than $1 million.
The new rules will take effect on July 9, 2012.  For more detailed information, please visit www.fin.gc.ca 

LOW-RISE HOME TYPES DRIVE JUNE PRICE GROWTS

July 5, 2012 - 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 5 % 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 % ceiling recently announced by Mr. Flaherty,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The average household in the GTA continues to benefit from a considerable amount of flexibility to account for higher interest rates moving forward,” continued Mercer.

FEDERAL GOVERNMENT CHANGES MORGAGE RULES

February 16, 2010 - The federal government has announced changes to the rules for government-backed insured mortgages (less than 20 percent down payment) as follows:
All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms.
Reduced maximum amount that can be withdrawn in refinancing a government-backed insured mortgage to 90 % from 95 % of the value of the home.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. Borrowers purchasing owner-occupied residential properties will still be able to access government-backed mortgage insurance with a 5 per cent down payment.

Additional detail is available here or copy and paste link in the browser

http://www.fin.gc.ca/n10/data/10-011_1-eng.asp

Background: Canada's Housing Market Remains Strong
Canada's housing market remains healthy and stable. According to the International Monetary Fund, our housing market is fully supported by sound economic factors, such as low interest rates, rising incomes and a growing population. Moreover, mortgage arrears—overdue mortgage payments—have also remained low.
Today's announcement is part of the Government's policy of proactively adjusting to developments in the housing market that could take root and cause instability. These steps are timely, targeted and measured, and will reinforce the importance of Canadians borrowing responsibly and using home ownership as a savings mechanism.

Measures Announced Today - Today, the Government announced three changes to the standards governing government-backed mortgages.

Qualifying at a Five-Year Rate- Current interest rates are at record low levels, which has improved the affordability of housing for Canadians. It is important that Canadians borrow prudently and are able to manage their debt loads when interest rates rise.
The adjustments to the mortgage framework will require mortgage insurers to ensure that borrowers qualify for their mortgage amount using the greater of the contract rate or the interest rate for a five-year fixed rate mortgage when calculating the GDS and TDS ratios.
This measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future.

Limit the Maximum Refinancing Amount to 90 per cent of the Loan-to-Value Ratio
Borrowers seeking financial flexibility can currently refinance their mortgage and increase the amount they are borrowing on the security of their home up to a limit of 95 per cent of the value of the property. This type of refinancing lowers the borrower's equity in their home. The adjustments today will lower the maximum amount of the mortgage loan in a refinancing of a government-backed high ratio mortgage loan to 90 per cent of the value of the property, consistent with the principle that home ownership is a tool for savings.

 
Discouraging Speculation by Requiring a Minimum Down Payment of 20 per cent for non-owner-occupied properties
This measure will require a minimum down payment of 20 % for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. Currently, borrowers may purchase a residential property with a 5 per cent down payment. Today's change will require a 20 per cent down payment for small (i.e., 1- to 4-unit) non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (e.g., borrowers purchasing a duplex to live in one unit and rent out the other) will still be able to access government-backed mortgage insurance with a 5 per cent down payment.
Moving to the New Framework
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010. Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010.

 

MITIGATING THE NEW HST TAX THREAT

February 19, 2010 - Being in the dog days of winter, I’m certain a lot of people are dreaming longingly of summer weather, backyard barbecues, and long weekends. For many Canadians, Canada Day is always the unofficial start of the summer season. Unfortunately, this year, Canada Day is also the start of something a little less inspiring: the provincial government’s new Harmonized Sales Tax (HST). Not exactly a nice way to celebrate our nation’s birthday.

What does the HST mean for you? In a nutshell, this tax will expand the provincial eight percent sales tax to apply, as of July 1, 2010, to the things that are currently applicable to the federal Goods and Services Tax (GST). This means that home buyers will have to pay PST on numerous items that they currently do not, including home inspection fees, legal fees, moving costs, home appraisals, and real estate service fees or commissions. For the average home buyer in the Greater Toronto Area, the HST will mean about $2,000 in new taxes.

Fortunately, however, there is still action that the provincial government can, and should, take to soften the HST’s blow, particularly for home buyers. Most importantly, the provincial government should take a serious look at its current Land Transfer Tax (LTT), which, if left as-is, would mean that home buyers are paying, not two sales taxes (provincial and federal), but three!

The provincial LTT is, essentially, a sales tax on home buyers, which is calculated as a percentage of the purchase price of their home. For the average GTA home buyer, the provincial LTT costs about $4,000, up front. That’s a pretty hefty sales tax. To make things worse, if you’re buying a home in the City of Toronto, you also have to pay a Municipal Land Transfer Tax of about th
e same amount.


REALTORS® have always voiced concern about land transfer taxes. Simply put, these are unfair taxes that target home buyers. Furthermore, land transfer taxes are bad policy because they make home ownership more difficult to achieve.

When the provincial government first proposed the HST, provincial politicians said that the HST was not intended to generate more revenue for the Province and that, in fact, it would be revenue neutral because of the credits that businesses would be able to claim under the new system. Well, REALTORS® strongly believe that the government should also take action to ensure that the taxes charged to home buyers also remain neutral. With the HST heading towards implementation, the best way for the government to offset its impact on homebuyers would be to take action on its unfair Land Transfer Tax.

For months, the provincial government has been going to great effort to convince Ontarians that the HST is not a tax grab and is simply a re-design of the tax system to improve efficiency and economic competitiveness. Whether or not that is true is 

debatable, but it’s clear to REALTORS® that, by taking action on its Land Transfer Tax to offset the HST on homebuyers, the government has a clear opportunity to put its money where its mouth is.

New HST TAX Transition Rules
October 21, 2009 -- The provincial government has provided rules/guidance on how it will transition to the implementation of the proposed Harmonized Sales Tax.

Background

The provincial government has passed legislation to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).
* The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1, 2010; however, note transition rules below.
* HST will not apply on the purchase price of re-sale homes.
* HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
* HST will apply to the purchase price of newly constructed homes.

However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

Transitional Rules for New Housing - Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

Additional Transitional Rules - Where services straddle the HST implementation date of July 1, 2010, the tax charged for the service may have to be split between the pre-July 2010 and post-June 2010 periods. However, the HST will generally not apply to a service if all or substantially all (90% or more) of the service is performed before July 2010.
Four key timelines are important (see below). All are based on the earlier of the time the consideration is either due (In general, an amount is due on the date of the invoice or the day required to be paid pursuant to a written agreement), or is paid without having become due. If consideration is due or paid,
Before October 15, 2009, HST will generally not apply (however, see above transition rules for new housing).
From October 15, 2009 to April 30, 2010, certain business that are not entitled to recover all of their GST/HST paid as input tax 

credit may be required to self-assess the provincial component of the HST with respect to goods or services supplied after June 30, 2010.
From May 1, 2010 to June 30, 2010, HST will generally apply for services supplied after June 30, 2010.
After June 30, 2010, HST will generally apply. An exception to this rule would be where ownership of the property is transferred before July 2010 or the invoice relates to services provided before July 2010.
With regard to the lease or license of goods, including non-residential real property, HST will generally apply to lease intervals or payment periods on or after July 1, 2010 and the general rules noted above will apply. However, where a lease interval begins before July 2010 and ends before July 31, 2010, it is not subject to HST.
With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.
More Detail
Additional detail on the transition rules is available by calling the provincial government enquiry line at 1-800-337-7222.

 

 

TORONTO WATERFRONT UPDATE

Redevelopment plans for the Toronto waterfront are continuing to be developed and implemented. Recently, pedestrian improvements were completed at York Quay and begun at Port Union.

York Quay Improvements - On June 26, Harbourfront Centre, the Toronto Waterfront Revitalization Corporation (TWRC) and representatives of the federal, Ontario and City of Toronto governments officially opened the new public promenade, boardwalks and piers along the water's edge of York Quay. The $12.5 million project ­ a restructuring of the water's edge ­ was built with TWRC support and equal funding from the three governments and features:

  • Extensive landscaping improvements, the widening of the water's edge promenades and the addition of a five-metre-wide wooden boardwalk on the lake adjacent to the promenade and two new finger piers

  • New and unique lighting and street furnishings, including a continuous granite capstone for seating that runs the length of the boardwalk

  • About 100 new trees and construction of a new fish habitat.

Port Union   - On June 11th, the community got a sneak peek at the new Port Union Waterfront Improvement Project, which stretches from Highland Creek to the Rouge River on Scarborough's east waterfront. The $16 million project is funded equally by the Government of Ontario, the Government of Canada and the City of Toronto through the TWRC, and its first phase will be complete in 2006. The project will add 3.6 kilometres to Toronto's waterfront trail system and feature:

  • A pedestrian tunnel

  • Headlands

  • Beaches and cobble shorelines

  • Wetlands on Adam's Creek

  • A pedestrian bridge over the mouth of Highland Creek.

For more information, please visit the Toronto Waterfront Revitalization Corporation's web site.

OTHER NEWS:  STATISTICS      HOT  NEWS      MARKET REPORT

 

INFO RE. TORONTO LTT REBATES PROVIDED BY THE CITY

October 23, 2007 - Toronto City Council has approved a municipal land transfer tax that will be levied on top of the provincial land transfer tax. TREB and REALTORS® took a strong position to oppose this tax as unfair in principle and refused to compromise. As a direct result of this strong position, City Council was forced to make a number of amendments to the City’s original proposal, including rebates for first-time buyers, a reduced rate, and grandfathering for existing transactions. The City has not yet provided detailed information on administration or implementation issues. The following is based on currently available information. Some information from the City is available here.

What was approved by City Council? A second land transfer tax, on top of the provincial land transfer tax, at the following rates:

Residential: (An easy-to-use residential calculator is available at www.NoHomeBuyingTax.com):

  • 0.5% of the amount of the purchase price up to and including $55,000, plus

  • 1% of the amount of the purchase price between $55,000 and $400,000, plus

  • 2% of the amount of the purchase price above $400,000

Commercial / Industrial / Etc.:

  • 0.5% of the amount of the purchase price up to and including $55,000, plus

  • 1% of the amount of the purchase price between $55,000 and $400,000, plus

  • 1.5% of the amount between $400,000 and $40 million, plus

  • 1% of the amount above $40 million

When does this take effect? February 1, 2008.

Are existing transactions grandfathered? Yes. Any transactions where the purchaser and vendor have entered into an Agreement of Purchase and Sale for the property prior to December 31, 2007 will be rebated the full amount of the Toronto land transfer tax, regardless of the closing date. (Note: Media reports that closings must occur by Feb. 1, 2008 are inaccurate.) Until that time, grandfathered transactions (Agreements signed on or before December 31, 2007), closing on or after February 1, 2008, will be charged the Toronto land transfer tax, which will then be rebated by the City of Toronto. Transactions closing before February 1, 2008 will not be charged the Toronto land transfer tax. The City has indicated that the necessary changes to Teranet’s system will be implemented in the “spring of 2008”. If you have concerns, please check with the lawyer or the Ciity. Once the City of Toronto provides clarification, more information I will provide more information.

What about Agreements of Purchase and Sale signed after December 31, 2007 with closing dates before February 1, 2008? Purchasers with a Purchase and Sale agreement signed after December 31, 2007 with a closing before February 1, 2008 will not be required to pay the Toronto Land Transfer tax.

Where does this apply? The Toronto land transfer tax only applies to transactions within the City of Toronto. This does NOT apply to property transactions outside of the City of Toronto.

Are first time home buyers affected? First time home buyers of NEW and RE-SALE homes will receive a rebate of the Toronto land transfer tax of up to $3,725 (this equals a 100% rebate on homes purchased for up to $400,000). The City has indicated that the necessary changes to Teranet’s system will be implemented in the “spring of 2008”.  Until that time, first-time buyer transactions will be charged the Toronto land transfer tax, which will then be rebated by the City of Toronto.

More detailed information will be provided once it is made available by the City. If you have questions, contact the City of Toronto at Access Toronto at 416-338-0338. Some information from the City is available here.

PROVINCE EXPANDS PROVINCIAL LAND TRANSFER TAX REBATE

December 13, 2007 - The provincial government has announced that it is expanding the PROVINCIAL land transfer tax rebate for first-time buyers to include re-sale housing, something which REALTORS® have lobbied for.

  • First-time buyers of BOTH re-sale, and newly constructed homes, will be eligible for a rebate of the provincial land transfer tax of up to $2,000.

  • Effective for first-time buyers who enter into Agreements of Purchase and Sale AFTER December 13, 2007.

  • This change is being implemented by provincial legislation introduced on December 13, 2007. The Ministry of Finance has indicated that, until the legislation is passed, first-time buyers of re-sale properties eligible for the rebate can submit their applications for the refund and they will be processed once the legislation has passed. It is not known when the legislation will be passed. Buyers can consult with their lawyers if they have concerns.

  • The provincial land transfer tax rebate applies in all Ontario municipalities. In Toronto, the provincial rebate is in addition to City rebates of the Toronto Land Transfer Tax. See details of Toronto Land Transfer Tax.

More Information: Ministry of Finance Land Transfer Tax Section 905-433-6361 or General Inquiry 1-800-263-7965                                 

DETAILS OF NEW APPROVED TORONTO LAND TRANSFER TAX - Q & A

Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below.

Details - According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following:

  • Purchasers who have entered into an Agreement of Purchase and Sale for a property on or before December 31, 2007; and

  • First-time home buyers where the total Toronto land transfer tax is $3,725 or less ($3,725 is the amount of TLTT payable on a home purchased for $400,000). First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City. Once all changes have been made to Teranet’s collection system, in the spring of 2008, these buyers will only have to pay the balance of the Toronto land transfer tax above $3,725.

 


NEW LISTING!


Loading...
Home  |  MARKET WATCH  |  STATISTICS  |  SEARCH PROPERTIES  |  SELLER's Guide  |  FREE Evaluation  |  Valuable Infromation  |  BUYER's Guide  |  Mortgages  |  Healthy Home  |  GTA Links & Info  |  Team Work  |  Contact Daniella
 

Privacy Policy  |  Site Map  |  Profile  |  Sign In

Choose language: