E.B.Dungey Realty Ltd. Brokerage

TORONTO, 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 per cent compared to the same period in 2013.  New listings were up over the same period, but by a lesser 4.4 per cent.

“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 Toronto Real Estate Board President Paul Etherington.

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

“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.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_condo_report_Q2-2014.htm

TREB President’s Column as it appears every Friday in the Toronto Sun’s Resale Homes and Condos section.

July 18, 2014 — As a REALTOR®, I’m often asked for advice regarding the best approach to building a solid financial future.

While investing in the stock market is often seen as a direct route to accumulating wealth, it’s a domain that is not familiar to everyone.

The good news is that even if you find the complexities of the financial markets confounding, homeownership offers a straightforward, and more advantageous alternative to growing your nest egg.

Today, a household earning the average income in the Greater Toronto Area (GTA) can comfortably afford mortgage payments on a Greater Toronto Area (GTA) home. If you’re planning to make the transition to homeownership here in the GTA, you can buy with the confidence that you’re investing wisely in a world city that consistently achieves strong global rankings.

Between June 2004 and June of this year, the value of the  SP/TSX Composite Index, which includes the largest companies listed on the Toronto Stock Exchange, appreciated by 77 per cent.  While this represents a sizeable increase, the value of residential real estate over the same period increased by an even greater amount in some parts of the GTA.

In June 2004, an average home in the Toronto Real Estate Board’s market area cost $316,532.  Last month, the same home would have cost $568,953, representing a cumulative increase of 80 per cent.  In the City of Toronto, the cumulative increase was comparable to the overall figure, coming in at 79 per cent, from an average house price of $345,792 in June 2004 to $617,854 last month.

In York and Halton Regions, the increases were robust. The June 2004 average price for a home in York Region was $356,226 compared to $679,687 last month, resulting in a cumulative increase of 91 per cent. In Halton Region, the cumulative increase has been 94 per cent, from an average price of $320,599 in June 2004 to an average price of $623,420 last month. Increases in Durham and Peel were also healthy at 62 and 74 per cent respectively. The fact that a home purchase works double duty, offering the backdrop for important life events while it quietly builds your wealth, should also be considered when measuring its return on investment.

In short, regardless of the part of the GTA that you may call home, ownership housing has experienced a substantial increase in value historically.  While past gains aren’t necessarily a perfect guide for the future, it seems reasonable to assume that as the population and economy of the GTA grows, so too will the value of residential real estate.  It is also important to consider the fact that investment in home ownership offers something that no other investment can: the opportunity to live in your investment while establishing yourself and your family in a vibrant community.

While it’s wise to be cautious of debt associated with large purchases, it’s important to note the difference between good debt and bad debt. The latter involves indulging in life’s luxuries while good debt involves spending your money so that it will work for you as an asset to build more wealth.  Provided that you are spending what you can reasonably afford, a home purchase unquestionably represents good debt.

For more advice on forging a path toward a solid financial future, talk to a Greater Toronto REALTOR®, and for the latest updates on our city’s housing market, be sure to visit www.TorontoRealEstateBoard.com

Paul Etherington is President of the Toronto Real Estate Board,
a professional association that represents 39,000 REALTORS®
in the Greater Toronto Area.

Follow TREB on www.twitter.com/TREBhome, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel

Article source: http://www.torontorealestateboard.com/market_news/president_columns/pres_sun_col/index.htm

TORONTO, July 2, 2014 — Throughout the next year Paul Etherington, President of the Toronto Real Estate Board, will be sharing updates on our city’s housing market, as well as some of the many insights he has gained during his 30 years as a Greater Toronto REALTOR®. 

“I have a passion for the profession because I firmly believe that buying a home is one of the smartest decisions you will ever make, and statistics show that many of you share this perspective,” said President Paul Etherington.
 

Based on data from the 2011 National Household Survey on Homeownership and Shelter Costs in Canada, more people own a home today than at any other point in our nation’s history. From global investors, to new immigrants, to young adults forging their own path, owning property in the Greater Toronto Area is a shared goal of people from all walks of life, and with good reason. 

While it fulfills our basic human need for shelter, a home’s benefits go well beyond its physical structure. For many people buying a home is a rite of passage, demanding enough tenacity to save for a down payment and stability to make a long-term commitment.  Often, it also compels us to connect with those around us, becoming part of a neighbourhood’s pulse by contributing to its schools, shops and community organizations. Moreover, it is the only investment in which you can live; building memories with family and friends while it appreciates. 

“Buying a home is one of the most important milestones in many people’s lives because it serves as a foundation from which a healthy financial future can be built,” said Mr. Etherington.

“The most notable financial benefit of owning a home is the capital gains tax exemption; when you sell your principal residence, you are not required to pay tax on the profit you make from the sale,” continued Mr. Etherington.
 

With top-notch rankings that our city achieves with respect to its economic and social development – most intelligent, most resilient and most youthful are just a few of the titles Toronto has garnered in independent international studies this year alone – and it’s understandable that consumer demand for GTA housing is virtually insatiable. 

If in the coming months you are planning to buy your first home or make the transition to a home that is more suited to your lifestyle, Mr. Etherington’s best advice to you is don’t wait. 

“The outlook for our city’s housing market is bright, as is the decision to invest in it as much as you can reasonably afford,” concluded Mr. Etherington.
 

For advice on taking the next steps toward your real estate transaction talk to a Greater Toronto REALTOR® and for information on the housing market, plain language explanations of commonly used real estate forms and more, be sure to visit www.TorontoRealEstateBoard.com or write to TREB President at trebpres@trebnet.com.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_paul_etherington_president.htm

TORONTO, July 9, 2014 — Housing starts in the Toronto Census Metropolitan Area (CMA) trended lower at 31,950 units in June compared to 32,897 in May according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR) ¹ of housing starts.

“A drop in apartment starts was responsible for the decline in total housing starts in June. Apartment starts tend to vary from month to month and such fluctuations do not point to a longer term trend,” said Dana Senagama, CMHC’s Toronto Senior Market Analyst. “Starts of townhouses and semi-detached homes are trending higher which points to the increasing popularity of less expensive low rise homes, especially among first time home buyers.”

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of the state of the housing market. In some situations, analysing only SAAR data can be misleading in some markets, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next.

The stand alone monthly SAAR was 26,479 units in June, down from 37,854 units in May.

Preliminary Housing Starts data is also available in English and French at the following link: Preliminary Housing Starts Tables

As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

Follow CMHC on Twitter @CMHC_ca

¹ All starts figures in this release, other than actual starts and the trend estimate, are seasonally adjusted annual rates (SAAR) — that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels. By removing seasonal ups and downs, seasonal adjustment allows for a comparison from one season to the next and from one month to the next. Reporting monthly figures at annual rates indicates the annual level of starts that would be obtained if the monthly pace was maintained for 12 months. This facilitates comparison of the current pace of activity to annual forecasts as well as to historical annual levels.

Information on this release:

Market Analysis Contact:

Dana Senagama
416-218-3328
dsenagam@cmhc.ca

Media Contact:

Angelina Ritacco
416-218-3320
aritacco@cmhc.ca

Additional data is available upon request.

Source: CMHC
¹ Census Metropolitan Area
² The trend is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR).
Detailed data available upon request

Article source: http://www.cmhc.ca/en/corp/nero/nere/2014/2014-07-09-0816b.cfm

TORONTO, July 8, 2014 — It is a period of new beginnings at the Toronto Real Estate Board as President Paul Etherington takes the reins to lead its newly elected Board of Directors, and welcomes new leadership with a new Chief Executive Officer. 

Working with the new Board of Directors at this year’s strategic planning for TREB will be new CEO John DiMichele, formerly TREB’s Chief Information Officer and Associate CEO.  For the past several years Mr. DiMichele has worked alongside Don Richardson, TREB’s preceding Chief Executive Officer who is now retired, attending to the day-to-day operations and working on all of TREB’s major files in order to provide for a seamless transition.

A driving force behind the introduction of numerous technology tools, John joined TREB in 2002 as staff Director of Information Services, immediately prior to which he served on the association’s Board of Directors and as Co-Chair of its MLS® Selection Task Force. 

The start of Mr. DiMichele’s career at TREB coincided precisely with the launch of a new MLS® system, TorontoMLS. Surmounting this trial by fire, he has been overseeing the evolution of the MLS® ever since. The system’s next generation, New Stratus, has run concurrently with TorontoMLS since April 2012 and in March 2015, TorontoMLS will be officially retired. 

“John’s wide-ranging contributions have established him as a highly valued and respected member of the real estate community, in fact John worked as a REALTOR® for more than a decade, and that knowledge, and experience will serve him well as TREB’s new CEO,” said TREB President Paul Etherington.  

Mr. DiMichele has served as a Member of three different Ontario Boards as a volunteer in a number of different capacities at each of them, as well as at the Ontario Real Estate Association. He also served as a Member of the Canadian Real Estate Association’s Board of Directors while acting as Chair of its MLS® and Technology Council.  

“My vision as CEO includes a solid commitment to keeping an open door to all Members, listening to their needs and offering input to TREB’s Board of Directors as they work to foster the association’s wellbeing and the continued success of each and every TREB Member, and the consumers they serve,” said Mr. DiMichele. 

Mr. DiMichele will continue to strive for the advancement, stability and security of the MLS® system.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_john_dimichele_ceo.htm

TREB President’s Column as it appears every Friday in the Toronto Sun’s Resale Homes and Condos section.

July 4, 2014 — Throughout the next year in my role as President of the Toronto Real Estate Board I will be sharing updates with you on our city’s housing market, as well as some of the many insights I have gained during my 30 years as a Greater Toronto REALTOR®.

I have a passion for the profession because I firmly believe that buying a home is one of the smartest decisions you will ever make, and statistics show that many of you share this perspective.

Based on data from the 2011 National Household Survey on Homeownership and Shelter Costs in Canada, more people own a home today than at any other point in our nation’s history. From global investors, to new immigrants, to young adults forging their own path, owning property in the Greater Toronto Area is a shared goal of people from all walks of life, and with good reason.

While it fulfills our basic human need for shelter, a home’s benefits go well beyond its physical structure. For many people buying a home is a rite of passage, demanding enough tenacity to save for a down payment and stability to make a long-term commitment.  Often, it also compels us to connect with those around us, becoming part of a neighbourhood’s pulse by contributing to its schools, shops and community organizations. Moreover, it is the only investment in which you can live; building memories with family and friends while it appreciates.

Sentiment aside, buying a home is one of the most important milestones in many people’s lives because it serves as a foundation from which a healthy financial future can be built.  The most notable financial benefit of owning a home is the capital gains tax exemption. Simply put, when you sell your principal residence, you are not required to pay tax on the profit you make from the sale, and with an average GTA house price of $582,100 in mid-June, it’s easy to see how your home’s equity can foster a rapid ascent up the property ladder.

Combine these benefits with the consistently top-notch rankings that our city achieves with respect to its economic and social development – most intelligent, most resilient and most youthful are just a few of the titles Toronto has garnered in independent international studies this year alone – and it’s understandable that consumer demand for GTA housing is virtually insatiable.

If in the coming months you are planning to buy your first home or make the transition to a home that is more suited to your lifestyle, my best advice to you is don’t wait.  The outlook for our city’s housing market is bright, as is the decision to invest in it as much as you can reasonably afford. 

For advice on taking the next steps toward your real estate transaction talk to a Greater Toronto REALTOR® and for information on the housing market, plain language explanations of commonly used real estate forms and more, be sure to visit www.TorontoRealEstateBoard.com. Write to the President at TREBpres@trebnet.com

Paul Etherington is President of the Toronto Real Estate Board,
a professional association that represents 39,000 REALTORS®
in the Greater Toronto Area.

Follow TREB on www.twitter.com/TREBhome, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel

Article source: http://www.torontorealestateboard.com/market_news/president_columns/pres_sun_col/index.htm

TORONTO, July 4, 2014 — Stepping into his role as President of the Toronto Real Estate Board, Paul Etherington announced a year-over-year increase in combined industrial, commercial/retail and office space leased through the TorontoMLS system in the second quarter of 2014. There was over 5.8 million square feet of total space leased in Q2 2014 – up by 15.6 per cent compared to Q2 2013.  At over 4.2 million square feet, the amount of industrial space leased was up by 10.8 per cent year-over-year.  The industrial segment accounted for almost three quarters of total leased space.

Annual change in average lease rates was mixed.  The average industrial lease rate, for properties leased on a per square foot net basis for which pricing was disclosed, was $5.10 – up by 5.5 per cent in comparison to Q2 2013.  The average commercial lease rate was down by 2.4 per cent to $18.93 per square foot net.  The average office lease rate was essentially unchanged compared to the same time frame last year.

“The industrial leasing market can be considered an indicator of business confidence.  A lot of industrial activity in the Greater Toronto Area is pointed at the production of goods for export abroad and particularly south of the border to the United States.  If we continue to see an uptick in industrial leasing, this could suggest that an increasing number of businesses are preparing for an upturn in export orders.  However, it is important to point out that there still exists some uncertainty with regard to the value of the Canadian Dollar, so we could still experience some volatility in leasing activity moving forward,” said Toronto Real Estate Board President Paul Etherington.

There was a total of 239 industrial, commercial/retail and office properties sold through the TorontoMLS system in the second quarter of 2014.  This result was down from 342 transactions reported in Q2 2013.  Most of the decline was in the industrial market segment.  The average selling price on a per square foot basis for transactions where pricing was disclosed was up for industrial properties.  Average selling prices were down for commercial/retail properties and office properties.

“Changes in average selling prices were the result of both market forces and a different mix of properties sold, in terms of type, size and geography, this year compared to last.  Business investment in Canada has been slow to recover since the recession.  However, if we see a sustained recovery in the export sector, investment in industrial, commercial/retail and office properties will likely increase,” continued Mr. Etherington.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_comm_watch_0614.htm