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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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Toronto homes web

GTA home prices continue to rise

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GTA home prices continue to rise

Toronto homes web

Greater Toronto Area average home prices continued their upward trajectory in November, rising 3.5 per cent year-over-year to $788,345, according to the Toronto Real Estate Board (TREB).

GTA realtors report 6,251 residential transactions through TREB’s MLS system in November 2018, down by 14.7 per cent compared to November 2017, when there was a temporary upward shift in demand caused by the looming OSFI-mandated stress test at the end of last year.

“New listings were actually down more than sales on a year-over-year basis in November,” President Garry Bhaura says. “This suggests that, in many neighbourhoods, competition between buyers may have increased. Relatively tight market conditions over the past few months have provided the foundation for renewed price growth.”

On a preliminary seasonally adjusted basis, sales were down by 3.4 per cent compared to October 2018.  The average selling price after preliminary seasonal adjustment was down by 0.8 per cent, compared to October 2018.

Average home prices, November

Toronto (416)
2018: $842,483
2017: $803,540

Rest of GTA (905)
2018: $750,721
2017: $732,848

GTA
2018: $788, 345
2017: $761,410

“Home types with lower average price points have been associated with stronger rates of price growth over the past few months,” says Jason Mercer, TREB’s director of market analysis. “Given the impact of the OSFI-mandated mortgage stress test and higher borrowing costs on affordability, it makes sense that the condo apartment and semi-detached market segments experienced relatively stronger rates of price growth in November, as market conditions in these segments remained tight or tightened respectively over the past year.”

Looking at the housing market from a policy perspective, TREB says it is encouraged with the provincial government’s recent announcement and on-going public consultation regarding a housing supply action plan.

“Housing supply remains a key issue in the GTA market,” says TREB CEO John Di Michele. “More specifically, an adequate supply and appropriate mix of housing types must be part of the conversation, as has been recognized by the provincial government in their consultation documents. Transit supportive and gentle density ‘missing middle’ housing should be a priority.”

 

GTA average prices and percentage gain by home type, November 2018

Detached: $1.01M, 1.3%
Semi-detached: $791,760, 8.3%
Townhome: $647,418, 3.1%
Condo: $556,723, 7.5%

TREB has commissioned research on these subjects and is holding a Market Outlook Economic Summit on Feb. 6, 2019.

“TREB is also encouraged that the provincial government remains committed to public transit expansion,” adds Di Michele. “TREB has long advocated for improvements to the Greater Golden Horseshoe transit and transportation network, and feels the time is right to have a conversation about the level of provincial and municipal responsibility that would be the most efficient arrangement to realize subway expansion sooner in Toronto, and the GTA, as this will impact the housing market.”

 

RELATED READING

GTA new home market gains further momentum in October

Delays in approval process contributing to housing affordability issue in GTA

7 factors that will affect GTA housing in 2019 – and 5 reasons to consider buying NOW

 

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Ontario web

Ontario government commits to housing action plan

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Ontario government commits to housing action plan

Ontario web
Steve Clark, minister of Municipal Affairs and Housing

The Ontario government says it is committed to a housing plan that makes more good quality places to live available for “the hardworking people of the province.”

“In communities all across Ontario, people are struggling to find housing they can afford,” says Steve Clark, minister of Municipal Affairs and Housing. “We’re taking action to help create more housing faster, give people more choice and bring down housing costs.”

Ontario is knocking down barriers to people getting housing they can afford that meets their needs, through:

 

  • Legislation that would make new rental units exempt from rent control, effective Nov. 15, 2018, while preserving rent increase limits for existing tenants
  • Ending the previous government’s expensive and ineffective Development Charges Rebate Program
  • Seeking public input on ways the government can remove barriers to building the right kind of housing in the right places. This input will inform a broader housing supply action plan. The consultation includes a downloadable toolkit so community groups can host local roundtables and share their thoughts with the province.

 

The demand for housing in Ontario has risen rapidly in recent years, driven by strong population growth and low interest rates. However, the supply of housing has not kept pace, leading to higher prices and rents.

Building more housing will also help make Ontario more attractive to businesses and investors, restoring the province to its rightful place as the economic engine of Canada.

“High housing costs are a barrier to job creators, large and small, because employees need affordable places to live,” says Todd Smith, minister of Economic Development, Job Creation and Trade. “Making housing more affordable will encourage people to start and grow businesses, right here at home.”

BILD reaction

“The Building Industry and Land Development Association (BILD) of the GTA is very supportive of the development of a Housing Supply Action Plan for Ontario,” says David Wilkes, president and CEO. “Shortfall in supply is a key factor undermining housing affordability, increasing rents and creating barriers to home ownership. We applaud the Ford government’s commitment  to address key issues affecting the housing supply and ultimately the affordability of housing in the GTA.”

TREB approves

The Toronto Real Estate Board, for its part, applauds the Province’s announcement.

“The Toronto Real Estate Board applauds the provincial government for taking action to ensure that our city, region and province have an adequate supply and appropriate mix of housing,” TREB said in a release.

Nowhere are housing supply and mix issues more of a priority than in the GTA, where TREB’s 53,000 members operate, the association says. “TREB realtors work with home buyers and sellers every day and they see the challenges caused by inadequate supply and mix of housing.

“We look forward to participating in the provincial government’s consultation process on this issue and helping our region and province to remain one of the best places to live in the world.”

RELATED READING

Delays in approval process contributing to housing affordability issue in GTA

7 factors that will affect GTA housing in 2019 – and 5 reasons to consider buying NOW

5 steps to solving the housing affordability issue in Ontario

 

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York

Province rejects York’s request for more revenue tools

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Province rejects York’s request for more revenue tools

York

Homebuyers and owners, maybe you do have a friend in the Province.

The Ontario Conservative government has declined a request by the Regional Municipality of York for the authority to levy additional revenue tools, including municipal land transfer taxes.

The Toronto Real Estate Board (TREB) applauds the Province for taking a strong stand in support of homebuyers and sellers.

TREB says it has spoken out against the use of land transfer taxes as an “unwise” and “unfair” method for municipalities to raise revenue.

Had it been approved, the request would have given York Region the freedom to impose new taxes on items such as vehicle registration, land transfer, alcohol, entertainment and amusement, parking and tobacco.

“We are encouraged that the provincial government recognizes the pressures facing consumers and the potential negative impacts of municipal land transfer taxes,” TREB says. “(We) will continue to speak out to protect the interests of home buyers and sellers.”

RELATED READING

5 steps to solving the housing affordability issue in Ontario

 

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Toronto vote

Municipal candidates aware of housing needs – TREB poll

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Municipal candidates aware of housing needs – TREB poll

Toronto vote

With municipal elections only days away, the Toronto Real Estate Board (TREB) has released recommendations on what newly elected councillors, mayors, and regional chairs across the Greater Toronto Area (GTA) can do to ensure housing affordability and choice for homebuyers and renters.

TREB also released the results of responses received from more than 200 municipal election candidates from across the GTA. Candidates were asked to respond to a TREB survey asking for their views on key housing issues that are the subject of TREB’s recommendations.

Both the policy briefs and candidate survey responses can be viewed at UnlockMyHousingOptions.com

“A recent poll conducted by Ipsos Public Affairs showed that housing affordability was a top-of-mind issue for voters in this election,” says TREB President Garry Bhaura. “Housing affordability is a priority for voters, and they want it to be a priority for the incoming municipal councils. Based on the candidate survey responses that TREB received, it appears that housing affordability is also a priority for many candidates.”

SURVEY HIGHLIGHTS:

  • 95 per cent of responding candidates in Toronto, and 86 per cent of responding GTA candidates, indicated that, if elected, they would advocate for updating municipal zoning by-laws and policies to encourage more medium density housing.
  • 85 per cent of responding Toronto candidates indicated that they would be willing to consider reforms to the Toronto Land Transfer Tax to adjust it for inflation; 84 per cent of responding GTA candidates indicated that they would, if elected, oppose proposals for any new municipal land transfer tax.
  • 85 per cent of responding Toronto candidates, and 79 per cent of responding GTA candidates, indicated that they would support efforts to reduce planning approval times and red tape to facilitate new housing supply.
  • 97 per cent of responding Toronto candidates, and 96 per cent of responding GTA candidates, indicated that they would, if elected, advocate for funding from senior levels of government for infrastructure investments.

MISSING MIDDLE

TREB has also released three new policy briefs on “missing middle” housing supply, housing-related municipal red tape, and infrastructure needs for housing supply, in addition to a brief issued earlier in the campaign on the impact of municipal land transfer taxes. TREB’s recommendations call for newly elected municipal councils to support the creation of much needed housing supply and options.

TREB is calling on councils to:

  • Review municipal zoning by-laws and consider changes to allow for more mid-density development such as townhomes.
  • Resist community opposition and work with neighbourhoods  by improving communication strategies to articulate the ability of mid-density developments to be seamlessly integrated into existing neighbourhoods.
  • Prevent any new municipal land transfer taxes in the rest of the GTA.
  • Reform the Toronto Land Transfer Tax to adjust the first-time home buyer rebate, and the threshold price at which the higher tax rate kicks in, for inflation, so both keep pace with the current average home price in Toronto now sitting at around $800,000.
  • Conduct reviews of municipal planning approval processes for new housing applications with a goal of streamlining and shortening the process.
  • Recognize the importance of infrastructure as it relates to housing supply and affordability, and move ahead with critical projects and investments such as regional transit as a key part of strategies targeted to addressing housing needs.

 

RELATED READING

6 Ontario municipal elections to watch regarding housing

Keesmaat’s 100,000 housing plan doomed to fail

 

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Vast majority of GTA Millennials fear buying a home is out of reach, poll says

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Vast majority of GTA Millennials fear buying a home is out of reach, poll says

Millennials Pic

There is great concern among GTA Millennials that they will be unable to afford a home, according to a new poll from the Building Industry and Land Development Association (BILD) and the Toronto Real Estate Board (TREB). 

The fear goes deeper, as GTA residents also expressed a lack of confidence about the likelihood their children will be able to remain in the communities where they grew up.

“According to a recent Centre for Urban Research and Land Development study, there are about 730,000 Millennials living in the Greater Toronto and Hamilton Area who may be planning to move on from living in their parents’ homes and from sharing a dwelling with roommates in the next 10 years, potentially creating 500,000 new households,” says Dave Wilkes, BILD President and CEO.

KEY POLL RESULTS

When considering the issues in the municipal elections on Oct. 22, GTA residents say they are concerned with the ability of today’s youth to afford a home in the GTA, including:

  • 94 per cent of respondents between the ages of 18 to 35
  • 84 per cent of respondents between the ages of 35 to 54
  • 80 per cent of respondents age 55 plus
  • 88 per cent of women and 82 per cent of men

Interestingly, although Millennials are concerned about the ability to own a home, they are also the most optimistic group regarding housing supply, with 41 per cent of them believing that the GTA is well prepared to provide housing for the number of new residents that settle here every year. This is substantially higher than those age 35 to 54 (31 per cent) and those over 55 (27 per cent).

GTA residents are pessimistic in terms of their ability to achieve home ownership, as well as their children’s future abilities to afford homes in their communities. There is also a consensus among residents that the GTA has an inadequate supply of affordable housing being built, or that the city will be able to accommodate the 115,000 new residents that enter every year.

Source: 2018 Ipsos
Source: 2018 Ipsos

When picking a new home, 60 per cent of GTA residents say they value a neighbourhood that is walkable and bikeable, in addition to being within proximity to shopping, entertainment and government services. This is closely followed by those who prefer access to convenient transit (56 per cent) and proximity to work and school (54 per cent).

Nearly seven out of 10 respondents feel that their children will be unable to afford a home in the community where they grew up. These respondents agrees it is important for young families to be able to afford to live and work within the GTA without having to deal with long commutes.

When asked, “To what extent do you strongly or somewhat agree or disagree with the following”:

  • 92 per cent agree that the dream of home ownership is becoming more difficult to achieve for young people living in my city
  • 86 per cent agree that it is important that young families can afford to live and work within the GTA without having to commute over an hour to get to work
  • 39 per cent agree that there are enough homes being built in my city to help keep housing affordable
  • 33 per cent agree that the GTA is well prepared to provide housing for roughly 115,000 new residents that settle here each year
  • 33 per cent agree that my children (or my friends’ children) will be able to afford a home in my community when they grow up

 

MILLENNIALS MOVING OUT

The best public policy is proactive, not reactive,” says Garry Bhaura, president of the Toronto Real Estate Board. “We hope these poll results demonstrate that the time for municipal decision-makers to start thinking about housing choice and supply for all GTA residents who want to own a home is now.”

“In the next decade, we are likely to be part of a significant housing shift in our region, as a large wave of Millennials start looking for a place to live of their own,” adds Wilkes. “Add the estimated 115,000 new residents that come to the GTA every year, and the area will see itself in a housing crisis. I urge voters and candidates to learn more about BILD’s recommendations at buildforgrowth.ca.”

“With a municipal election just a few short weeks away, the public has an opportunity to ask candidates to commit to policies that will make it easier to fill their housing needs,” says John DiMichele, chief executive officer of TREB. “GTA homebuyers do not have adequate choice in housing available for sale or rent, and municipal government policy is one of the key reasons.

DiMichele suggests GTA residents visit UnlockMyHousingOptions.ca to send messages to candidates.

RELATED STORIES

Build For Growth: Housing Affordability

THE ANALYST : Premier Ford: Seven steps to housing affordability

Housing sector calls on Queen’s Park to take immediate action to address home affordability

 

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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 recent provincial election 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, further constraining the supply of homes available for purchase.

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.

I also look forward to keeping you informed and updated on activity impacting the GTA’s housing market in the coming months.

GARRY BHAURA 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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Finance: More Transparency Coming To Toronto Real Estate Market

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Finance: More Transparency Coming To Toronto Real Estate Market

Canadians will now have greater access to real estate sold prices in Toronto. In August the Supreme Court of Canada refused to hear the Toronto Real Estate Board’s (TREB’s) appeal to an earlier federal court decision that accused them of anti-competitive practices by the Competition Bureau.

This means all homes and condos listed on the MLS and sold in Toronto will be readily available without the need of a password or engaging an agent.

TREB’s major argument was concern around copyright and privacy. They said putting all this data online publicly would be problematic.

In a statement released after the Supreme Court refusal, TREB CEO John DiMichele said “TREB believes personal financial information of homebuyers and sellers must continue to be safely used and disclosed in a manner that respects privacy interests and will be studying the required next steps to ensure such information will be protected in compliance with the Tribunal Order once that comes into effect.”

This is a first for a major real estate board in Canada, but has been going on in the U.S. for more than 10 years. Here’s what to expect.

Better Informed Client

When working with a real estate agent, sellers and buyers will no longer have to ask them for comparative sales in the area. This is the best way to understand what a home’s market value is. When putting their house on the market, sellers can arm themselves with the latest data. Buyers as well can make offers with confidence as they will have been able to research the area they are looking to buy in on their own.

Agents Can Provide Better Service

Realtors serve a key role in the real estate transaction. They serve their client and make sure they get the best deal and guide clients through the process. For sellers they can help determine fair market value for your home, they arrange open houses and find potential buyers. Often, they have a roster of potential buyers they can show the house too as well.

For buyers, agents are often subject matter experts in the areas they service — knowing the history of the area and what streets are most sought after. When negotiating they ensure all the checks are done to make sure the home you are buying is being fairly represented.

What Changes Can We Expect?

With data now readily available, consumers can expect to see an increase in websites focused on this information. It’s not just active sellers and buyers interested, but any homeowner wants to know what their biggest investment (their home) is worth. Making data available in a user friendly way could be challenging, especially if a home has seen a number of transactions in a few years. Also making sure data is accurate and up to date is important. Expect to see a number of sites pop up dedicated to providing this information.

No Concern for Realtor’s Role

Those agents with a large client base and established reputation should not worry about their business being affected. The need for a knowledgeable agent, willing to work hard for their clients, will still exist. For those agents who may not have the same level of expertise, they may have to work harder to get up to speed on how they can provide a service to their client, other than regurgitated sold numbers. For those agents there may be a steep learning curve as the market in Toronto becomes more transparent. Looking further this could have an effect on other markets in Canada, especially those next door to Toronto, whose clients will demand the same level of access to sold prices.

Rubina Ahmed-haq is a journalist and personal finance expert. She is HPG’s Finance Editor. She regularly appears on CBC Radio and TV. She is a contributor on CTV Your Morning and Global Toronto. She has a BA from York University, received her post graduate journalism diploma from Humber College and has completed the CSC. Follow her on Twitter @alwayssavemoney.

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Love new home development Web

One reason to LOVE new home development

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One reason to LOVE new home development

Love new home development Web

by Wayne Karl

Sure, everyone understands the need for new home development – homes, condos, infrastructure and other neighbourhood amenities.

They just don’t want it too close to them – the so-called “not in my backyard” (NIMBY) syndrome.

The latest indication comes from a joint poll from The Building Industry and Land Development Association (BILD) and the Toronto Real Estate Board (TREB). Last week, the bodies issued the results of a poll – as the Oct. 22 municipal election nears – to shed some light on voters’ priorities.

 

“(The) poll data clearly showed that housing affordability and supply are key issues for GTA residents,” says Garry Bhaura, TREB president. “Residents expect municipal politicians to tackle these issues in the upcoming election.”

Poll results show that building more new homes is seen, overwhelmingly, as a critical part of the solution to housing affordability in the GTA. However, overcoming resistance to change and “not in my backyard” sentiment in existing neighbourhoods is a huge barrier that municipal leaders can help overcome by taking a leadership role.

KEY POLL RESULTS:

  • 87 per cent of respondents indicated that it is important to build new homes in the GTA as a means toward addressing the issue of housing affordability
  • GTA residents across all areas expressed this importance, including those living in York Region (87 per cent), Toronto (88 per cent), Peel Region (87 per cent), Durham Region (88 per cent) and Halton Region (81 per cent)
  • Those living in the 416 (88 per cent) feel slightly more strongly about the importance of new builds versus those in the 905 (86 per cent)

Opposition to new home construction is show to increase with proximity and density.

  • 30 per cent say they oppose the building of a new single family detached home within a half kilometre of their home
  • 37 per cent say they oppose the building of a new townhouse development within a half kilometre of their home
  • 44 per cent say they oppose the building of a stacked townhouse development (defined as middle-density housing) within a half kilometre of their home
  • 49 per cent say they oppose the building of a small condo apartment building (defined as middle-density housing) within a half kilometre of their home
  • 52 per cent say they oppose the building of a mid-rise condo apartment building (defined as middle-density housing) within a half kilometre of their home
  • 59 per cent say they oppose the building of a highrise condo apartment within a half kilometre of their home

 

This is not exactly a new sentiment. BILD and others in the industry have been speaking out on this issue, literally for years.

POTENTIAL POSITIVE IMPACT

One factor homeowners might overlook, however, is the potential positive impact such developments can have, particularly on the value of their homes.

“The construction of new homes can have several impacts on the average home price,” says Ben Myers, president of Bullpen Research & Consulting Inc., Toronto. “It often replaces older retail, commercial space or single-family residential units, which can improve the quality and perception of a neighbourhood, driving up values.

Studies also show that development of new transit and highway infrastructure – often accomplished in concert with new home development – can also boost property values.

The more attractive an area becomes in terms of location, the higher the value of nearby homes. As the demand for homes in that area expands, value appreciation is often a natural result.

Research shows that properties located within 500 to 800 metres of stations of new transportation lines can experience a 10- to 20-per-cent enhancement of real estate values.

Wayne Karl is Senior Digital Editor at Homes Publishing Group. wayne.karl@homesmag.com

RELATED STORIES

THE LAWYER: NIMBYism and politics: a bad combination

Industry Report : The GTA Grows Up, Not Out, And Our Neighbourhoods Are Changing

Home Builder: Our Neighbourhoods Are Intensifying As The GTA Grows Up and Not Out

 

 

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Real Insight: Behind The Numbers

Latest News


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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