Tag Archives: The Toronto Real Estate Board (TREB)

GTA Condos

GTA condos lead resale price growth in 2018

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GTA condos lead resale price growth in 2018

GTA Condos

Multi-family homes – namely townhomes and condos – led the way in price growth among resale homes in the GTA in 2018, according to the latest statistics from the Toronto Real Estate Board (TREB).

Overall, the average selling price for the year was $787,300, down 4.3 per cent, while sales declined 16.1 per cent from 2017.

Home prices were up slightly in the city of Toronto and down in the surrounding GTA regions. This dichotomy reflects the fact that the condominium segment, which accounted for a large proportion of sales, performed better from a pricing perspective than detached homes. The average price for condominium sales across the TREB market area was up by 7.8 per cent year-over-year.

Higher borrowing costs

“Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options,” says Garry Bhaura, TREB president. “It is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint.”

“After spiking in 2017, new listings receded markedly in 2018,” adds Jason Mercer, TREB’s director of Market Analysis and Service Channels. “In many neighbourhoods, despite fewer sales from a historic perspective, some buyers still struggled to find a home meeting their needs.  The result was a resumption of a moderate year-over-year pace of home price growth in the second half of the year.  Price growth was strongest for less-expensive home types, as many home buyers sought more affordable home ownership options.”

Outlook Report

TREB will be releasing its fourth annual Market Year-in-Review and Outlook Report on Feb 6, featuring the latest results from the Ipsos surveys of existing homeowners and intending homebuyers.  The report will also contain information on the new home market and other analyses.

 

GTA average prices by home type, yr/yr % change

Condominiums
416:
$594,381, 11.4%
905:
$454,135, 5.8%
Total:
$554,497, 9.9%

Townhomes
416
: $714,456, 10%
905: $591,851, 2.9%
Total: $624,042, 5.3%

Semi-detached
416
: $939,859, 4%
905: $661, 186, 3.9%
Total: $755,707, 3.2%

Detached
416
: $1.14 million, -8%
905: $891,095, -2.2%
Total: $945,580, -4.4%

 

RELATED READING

GTA home prices continue to rise

GTA new home market back to typical sales and openings levels in November

GTA moving into balanced market for 2019

Canada’s most and least expensive places to buy – and guess where Toronto is

 

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2018 web

5 things we can learn from real estate in 2018

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5 things we can learn from real estate in 2018

2018 web

With much of 2018 in the rear-view mirror, It’s been quite the year for the housing market in the GTA and elsewhere in Ontario. From sales and price fluctuations to supply concerns to rising housing costs. As 2019 approaches, here are five things we can learn from real estate in 2018.

 

1 Get used to the affordability issue

Get used to affordability challenges, especially in the GTA. This oft-cited issue is not going away any time soon, despite lobbying from the likes of the Building Industry and Land Development Association (BILD) and the Toronto Real Estate Board (TREB).

Key economic fundamentals such as population and employment growth will continue to drive housing market demand. Over the next decade, almost 700,000 first-time buyers will target the GTA or Hamilton markets, according to a report from the Ontario Real Estate Association. Meanwhile, the supply of new homes is not yet being addressed, which contributes to rising prices.

With recent interest rate hikes and other changes, sales and prices in the GTA saw some moderation in 2018. But this will be short-lived, and a return to price growth is expected.

 

2 Increased government involvement – finally

Government lobbying by BILD and TREB seems to be paying off, in the sense that the Province is increasingly aware of the issues facing the industry – and buyers.

Buyers, you may not realize it, but you should thank BILD, TREB and other associations for that.

In late November, Ontario announced it was committing to a housing action plan “to help create more housing faster, give people more choice and bring down housing costs.”

Like anything involving government, though, this process will likely be slow moving – meaning, some of the challenges, namely increasing housing supply – will take time to be resolved.

But at least the issues are on the agenda.

One real example of this improved awareness is Ontario’s recent plan to change the 40-year-old apprenticeship system in the province – a move the home building industry says is a “game changer.”

It’s a game changer because the new one-to-one ratio, a significant change from the existing 3-to-1 ratio, will enable home builders and renovators to more easily hire and train new apprentices. Besides creating more job opportunities for trades workers, the move also helps builders and renovators operate their businesses

 

3 Fixing on interest rates

The Bank of Canada raised its overnight rate three times in 2018 – January, July and October – to where it sits now, 1.75 per cent.

Canada’s major banks, as is usually the case, responded by immediately raising their own rates.

Naturally, all of this has Canadians feeling a little uneasy.

The Conference Board of Canada’s latest Index of Consumer Confidence confirms that rising interest rates and weaker wage growth have started to take their toll on confidence. With interest charges squeezing Canadian wallets and weakening wage growth offering little reprieve, consumers have become hesitant to make major purchases and are less positive about the state of their finances.

In its latest rate announcement on Dec. 5, the Bank of Canada noted that global economic expansion is slowing, and the effects of the “oil price shock” are being monitored.

“We expect that the Bank will not move the overnight rate until the effects of the declining energy sector are known,”according to interest rate comparison website ratehub.ca. “However, the Bank makes it clear that they still plan on raising the key interest rate in 2019, likely more than once.”

This moderated stance might put downward pressure on fixed rate mortgages, however, so Canadians may see better fixed rates in the coming weeks, ratehub.ca says.

 

4 Real estate is more local than ever

It’s a simple point that escapes some consumers: Real estate is local, and in 2018, it became more local than ever.

What do we mean?

Well, the Canadian Real Estate Association (CREA), Canada Mortgage and Housing Corp. (CMHC) and other major real estate bodies are mandated to oversee the national market.

So, when CREA issues a release that says Canadian home sales are down by X per cent, or when CMHC reports the national vacancy rate is down for the second consecutive year – and major media report such headlines – people tend to worry.

It’s essential to remember, however, that when you buy a home, you don’t buy the national market. You buy one house, on one street, in one neighbourhood, in one city and region.

If you live in Ontario, why do you care that Alberta’s ongoing oil industry struggles are pulling sales and prices down in markets in that province? Or that prices in Vancouver are even less affordable than in Toronto?

Forget the national headlines. Drill down into what’s happening in your market.

And why is real estate more local then ever? Because…

 

5 Lessons from Oshawa

General Motors Canada’s November announcement that it was closing its Oshawa assembly plant sent shockwaves not just through the province but all of Canada. To be sure, the loss of at least 2,500 jobs – not to mention untold positions in related suppliers – in a community of 170,000, is going to hurt. Hurt whom, and how badly, are the only questions.

This development should serve as a stark reminder to us all – of how important it is for cities to develop diversified, modern economies. Overdependence on any one ge, singular industries leads to overexposure in the case of downturns or, in GM’s case, outright shutdowns. It hurts the local economy, which impacts employment and wage growth, which impacts the housing market.

Oshawa, thankfully in recent years, has been diversifying its economy and expanding in technology, education and other industries. It will help, but the impact of the GM closure will likely play out over many months, if not years.

These developments could push housing in Oshawa into a buyers’ market, and prospective buyers could benefit from more options and softening prices.

In new homes, builders remain undeterred, encouraged by the longer-term growth and development throughout the Durham Region. Still, some may offer incentives such as discounts or inclusions to entice qualified buyers.

 

RELATED READING

GTA moving into balanced market for 2019

GTA new home market gains further momentum in October

What the GM plant closure means for Oshawa’s economy and housing market

New home buying opportunities abound in Oshawa and Durham Region

Where are interest rates headed in 2019?

 

 

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Real Insight: Behind The Numbers

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Real Insight: Behind The Numbers

A deeper look into the GTA housing market

As president of the Toronto Real Estate Board (TREB) for 2018/2019, I’m excited to use this column to help break down the numbers behind the GTA real estate market.

We saw continued positive signs in the market in July 2018, with strong growth in both the number of home sales and the average selling price compared to July 2017.

At 6,961, July sales were up by more than 18 per cent compared to the same month last year. The average price for these sales was $782,129, up by almost 5 per cent compared to July 2017.

These are certainly encouraging figures for the health of the real estate market, which is a key economic engine, and point to initial signs that some people who had moved to the sidelines due to the psychological impact of the Fair Housing Plan, as well as changes to mortgage lending guidelines, have begun to re-enter the market.

PRIORITIZING HOUSING POLICY ISSUES

Starting with the provincial election last month and looking forward to the upcoming municipal elections this fall, the TREB has been busy working with elected officials and candidates to ensure that homeownership and housing affordability are a priority on the agendas of policymakers at all levels.

In order to truly make strides in terms of housing affordability, governments must prioritize increasing housing supply, especially the missing middle housing options (home types that bridge the gap between detached houses and condominium apartments), and reducing tax burdens, such as land transfer taxes.

On the latter point, we have clear evidence that residents agree. In a recent poll of 1,200 GTA residents conducted by Ipsos Public Affairs in May 2018, 77 per cent of respondents said they supported reducing the provincial land transfer tax, while 68 per cent supported repealing it. Similarly, 76 per cent supported reducing the Toronto municipal land transfer tax, while 69 per cent supported repealing it. Most residents are opposed to land transfer taxes because they are a barrier to homeownership and discourage individuals and families from right-sizing.

We look forward to working with all elected officials to help provide effective solutions to housing affordability issues such as these and will continue to speak out for homebuyers, sellers and renters.

Garry Bhaura is president of the Toronto Real Estate Board. You can contact him at TREBpres@trebnet.com. For updates on the real estate market, visit TREBhome.com. If commercial property is what interests you, contact a TREB realtor by visiting TREBcommercial.com.

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GTA home prices decline 12.4%

GTA home prices decline 12.4%

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GTA home prices decline 12.4%

TREB releases monthly market figures reported by GTA realtors

Toronto Real Estate Board (TREB) president Tim Syrianos announced that GTA realtors reported 7,792 sales through TREB’s MLS System in April 2018. The average selling price was $804,584. On a year-over-year basis, sales were down by 32.1 per cent and the average selling price was down by 12.4 per cent.

The year-over-year change in the overall average selling price has been impacted by both changes in market conditions as well as changes in the type and price point of homes being purchased. This is especially clear at the higher end of the market.

Detached home sales for $2 million or more accounted for 5.5 per cent of total detached sales in April 2018, versus 10 per cent in April 2017.

The MLS Home Price Index strips out the impact of changes in the mix of home sales from one year to the next. This is why the MLS HPI Composite Benchmark was down by only 5.2 per cent year-over-year versus 12.4 per cent for the average price.

“While average selling prices have not climbed back to last year’s record peak, April’s price level represents a substantial gain over the past decade. Recent polling conducted for TREB by Ipsos tells us that the great majority of buyers are purchasing a home within which to live,” Syrianos said. “This means these buyers are treating home ownership as a long-term investment. A strong and diverse labour market and continued population growth based on immigration should continue to underpin long-term home price appreciation.”

After preliminary seasonal adjustment*, the month-over-month change (i.e. March 2018 to April 2018) in sales and the average selling price was minimal, with sales decreasing 1.6 per cent and the average selling price decreasing by 0.2 per cent.  The month-over-month sales trend has flattened out over the past two months following a steeper drop-off in January and February.

“The comparison of this year’s sales and price figures to last year’s record peak masks the fact that market conditions should support moderate increases in home prices as we move through the second half of the year, particularly for condominium apartments and higher density lowrise home types,” said Jason Mercer, TREB’s sirector of market analysis. “Once we are past the current policy-based volatility, homeowners should expect to see the resumption of a moderate and sustained pace of price growth in line with a strong local economy and steady population growth.”

“With a provincial election campaign about to begin, GTA realtors hope that all of the provincial parties will make housing issues a priority. Homeownership is a worthwhile investment that benefits our economy, individual finances and quality of life,” said Syrianos.

“In recent months and years, there has been significant intervention in housing markets by all levels of government, through regulatory changes and taxation. We believe the next step should be tax relief, especially from Land Transfer Taxes, both provincial and the Toronto Land Transfer Tax, and efforts to facilitate an increase in the supply of missing middle housing that fills the gap between single family homes and highrises. Furthermore, we believe that any attempt to increase the Toronto Land Transfer Tax should require approval from the provincial government, given the significance of Toronto’s economy to the province and the connections between the Toronto real estate market and that of the broader GTA.”

______

* Preliminary seasonal adjustment undertaken by the Canadian Real Estate Association (CREA). Removing normal seasonal variations allows for more meaningful analysis of monthly changes and underlying trends.


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TREB releases condo market report

TREB releases condo market report

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TREB releases condo market report

The average selling price for condominium apartments sold through TREB’s MLS system was up by 9 per cent year-over-year.

The Toronto Real Estate Board president Tim Syrianos announced that the average selling price for condominium apartments sold through TREB’s MLS system was up by 9 per cent year-over-year to $533,447 in the first quarter of 2018.

While the number of condominium apartment sales reported by GTA realtors in the first quarter was down by 29.7 per cent year-over-year to 5,084, so too were the number of new listings, which were down by 11.1 per cent annually to 8,030.

“Sellers’ market conditions for condominium apartments remained firmly in place in the first quarter of 2018. Strong competition between buyers underpinned price growth well above the rate of inflation,” Syrianos said. “We expect the condo market segment to remain strong through the remainder of 2018 and over the longer term, as buyers continue to see ownership housing as a quality long-term investment.”

Inventory levels for condominium apartments in the first quarter of 2018 were above the record lows experienced during the first three months of 2017. However, with months of inventory continuing to trend between 1.5 and 2 months, market conditions remain very tight from a historic perspective.

“The condominium apartment market segment continues to have the lowest price point on average compared to other major lowrise home types,” said Jason Mercer, TREB’s director of market analysis. “It stands to reason that condos remain popular with first-time buyers. Strong demand relative to supply will see this segment perform well from a pricing standpoint for the remainder of 2018 and beyond.:

Protect consumers purchasing a former grow-op

On a related front, personal cultivation of cannabis should not be allowed inside homes as growing marijuana can pose significant health and safety issues for unsuspecting homebuyers, such as the growth of mould and fungus. With the legalization of marijuana looming, there are no rules in place to protect a homebuyer from purchasing a former grow operation.

“The provincial government needs to act now to bring forward measures that will ensure homebuyers are protected from the health and safety risks associated with former grow ops,” Syrianos said. “Policy makers must take action to protect Greater Toronto Area homeowners and address the long-term impact of legal marijuana cultivation on the housing stock.

“We are calling for measures to require inspection by municipal building officials, registration of remediation work orders on property title, mandate home inspectors to receive training on spotting former grow operations and restrict the number of plants that a homeowner can grow from four to one in units 1,000 square feet or smaller to protect multi-unit dwellings such as condos and apartments.

“Visit protectontariohomes.ca, launched by the Ontario Real Estate Association for more information on cannabis legalization and to take action.”

trebhome.com


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GTA home sales drop 39.5 per cent from March 2017

GTA home sales drop 39.5 per cent from March 2017

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GTA home sales drop 39.5 per cent from March 2017

GTA home sales down 17.6 per cent relative to average March sales for the previous 10 years, TREB reports

Toronto Real Estate Board (TREB) president Tim Syrianos says that Greater Toronto Area realtors reported 7,228 residential transactions through TREB’s MLS System in March 2018. This result was down by 39.5 per cent compared to a record 11,954 sales reported in March 2017, and down 17.6 per cent relative to average March sales for the previous 10 years.

The number of new listings entered into TREB’s MLS System totalled 14,866 – a 12.4 per cent decrease compared to March 2017 and a three per cent decrease compared to the average for the previous 10 years.

“TREB stated in its recent Market Outlook report that Q1 sales would be down from the record pace set in Q1 2017,” said Syrianos. “The effects of the Fair Housing Plan, the new OSFI-mandated stress test, and generally higher borrowing costs have prompted some buyers to put their purchasing decision on hold. Home sales are expected to be up relative to 2017 in the second half of this year.”

The MLS Home Price Index Composite Benchmark was down by 1.5 percent on a year-over-year basis for the TREB market area as a whole. The overall average selling price was down by 14.3 per cent compared to March 2017.

While the change in market conditions certainly played a role, the dip in the average selling price was also compositional in nature. Detached home sales, which generally represent the highest price points in a given area, declined much more than other home types. In addition, the share of high-end detached homes selling for over $2 million in March 2018 was half of what was reported in March 2017, further impacting the average selling price.

“Right now, when we are comparing home prices, we are comparing two starkly different periods of time: last year, when we had less than a month of inventory versus this year with inventory levels ranging between two and three months,” said Jason Mercer, TREB’s Director of Market Analysis. “It makes sense that we haven’t seen prices climb back to last year’s peak. However, in the second half of the year, expect to see the annual rate of price growth improve compared to Q1, as sales increase relative to the below-average level of listings.”

TREB continues to stress that housing and housing affordability need to be at the forefront of the policy debates leading into this year’s provincial and municipal elections.

“A well-functioning housing market is not only important to ensure that people have a place to live, it is also important because it supports hundreds of thousands of jobs, billions of dollars in spin-off expenditures and billions of dollars in government revenues,” Syrianos said. “Issues such as the below-average level of housing supply and often inadvisable policy ideas and negative measures such as land transfer taxes, vacancy taxes, speculation taxes and second home taxes should also be thoroughly debated by all candidates,” said Syrianos.

Click here to read TREB’s full report.


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GTA's most expensive (and least expensive) home

GTA’s most expensive (and least expensive) home

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GTA’s most expensive (and least expensive) home

A search of the Multiple Listing Service at realtor.ca found the most expensive and least expensive homes in the GTA.

HIGH

68 THE BRIDLE PATH: $35 million
MLS number: C3910864

Quintessential gated French chateau-style home and preeminent country estate located on the highly sought-after Bridle Path. The home features nine above-grade bedrooms, 14 bathrooms, a games room and library.

The home offers spectacular grandeur on a four-acre ravine lot enhanced by manicured gardens, a stately fountain and a magnificent arboriculture paradise of privacy. Stone mansion exudes elegance, majesty and authenticity. The home features a 50-foot indoor swimming pool and an exquisite 18th-century period French onyx and marble fireplace mantles. Extras include custom granite, cobblestone driveway, formal granite and stone entrance, aged Italian marble floors, crown moulding, French doors, Downsview kitchen, elevator, Dectron pool system, tennis court, gazebo, potting cabin and golf cart.

Re/Max Realtron Barry Cohen Homes Inc.
Brokerage
183 Willowdale Avenue, Unit 6, Toronto, 416-222-8600
Patricia Sun, salesperson, 416-930-6920
Toll Free: 416-930-6920
barrycohenhomes.com



LOW

4673 JANE STREET, UNIT 1006: $58,000
MLS number: W3878963

A one-bedroom, one-bathroom condo with underground parking and locker and ceramic floors throughout. The bath has a mirrored sliding door and there is a sliding glass door to an enclosed balcony with a fabulous view. Large storage spaces and large hallway closet. Close to all amenities with a plaza across the street with supermarket, drug store, gas station, bank, restaurant, laundromat, doctor and dental offices, churches, schools and TTC at door. Walk to York University, Canada’s Wonderland is five minutes away, Black Creek Pioneer Village is walking distance. Extras: Fridge, stove, blinds (window coverings). Pets allowed, playground at back of building and 24-hour security. Maintenance fees are $566.43 a month.

Homelife Woodbine Realty Inc.
Brokerage
680 Rexdale Boulevard, Unit 202, 416-741-4443
Danny Tulshi, salesperson, 416-741-4443
homelifewoodbine.ca


Data provided by Toronto Real Estate Board. All information displayed is believed to be accurate but is not guaranteed and should be independently verified. No warranties or representations are made of any kind.

As of October 22, 2017



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Real Insight: Changes To Act Will Benefit Consumers

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Real Insight: Changes To Act Will Benefit Consumers

TREB working alongside government to modernize Real Estate and Business Brokers Act

The Toronto Real Estate Board (TREB) is demonstrating its commitment to consumer protection and efficiency for real estate transactions in multiple meetings with the Ministry of Government and Consumer Services to provide input on potential changes to the Real Estate and Business Brokers Act, 2002.

We are happy to work with the province to ensure that the rules governing the real estate industry are modernized and adjusted to ensure consumer protection and an efficient marketplace for real estate professionals and the public. We also believe that consumers deserve to be treated with fairness, honesty and integrity when purchasing a home, often the biggest financial decision in most people’s lives.

Phase one of the current review is focusing on issues associated with multiple representation situations, consumer understanding of real estate transaction agreements and penalties for unethical behaviour.

TREB supports, in principle, the proposal to move towards a mandatory designated representation model. This approach is consistent with numerous other Canadian jurisdictions, and we believe that it will allow for the efficient operation of the marketplace while ensuring consumer protection.

The mandatory designated representation that the government is proposing, means that when a circumstance arises that a buyer and seller are represented by the same real estate brokerage, the brokerage would be required to designate different representatives from that brokerage to represent each client. A salesperson/ broker within a brokerage would be prohibited from representing both the buyer and the seller, or more than one buyer, in the same trade with limited exceptions such as a private arrangement between family members or if there are a small number of registrants in areas serving a small market or community.

However, TREB is advocating that there should also be provisions (transactional representation) to allow for consumer choice in how and by whom they are represented when working with their brokerage and licensed representative. Transactional representation will be an option when a representative is representing both a buyer and seller in the same potential transaction with their consent.

Three options will be presented to the consumer: unrepresented, represented by another representative for that transaction, or transactional representation.

Transactional representation eliminates the ability for a representative to represent both clients by restricting the services they can offer to both a buyer and seller. If they consent, the representative becomes an impartial facilitator.

The vast majority of TREB members are ethical and comply with the Real Estate and Business Brokers Act. There should be a review for consistency in enforcement and disclosure of fines and penalties. Any actions in this area should be evidence-based. With this in mind, we look forward to continuing to work with the province on all aspects of this and other important issues such as raising educational standards and requirements.

Tim Syrianos is president of the Toronto Real Estate Board, a professional association that represents 48,000 professional realtor members in the Greater Toronto Area. You can contact him at TREBpres@trebnet.com. For updates on the real estate market, visit TREBhome.com. If commercial property is what interests you, contact a TREB realtor by visiting TREBcommercial.com.

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