E.B.Dungey Realty Ltd. Brokerage

TORONTO, October 30, 2014 — The momentum in the Ontario housing market will be sustained through most of 2015 before slowing later next year and into 2016, according to the Fourth Quarter 2014 CMHC Housing Market Outlook – Canada Edition released today. After declining in 2014, Ontario annual home starts will grow to 63,000 units in 2015 and will range between 57,500 and 67,900 units before slowing to 60,400 units in 2016.

“An improving economy will be more supportive of the Ontario housing market in 2015. However, as mortgage carrying costs continue to grow, due largely to rising home prices, demand will increasingly shift to more affordable housing by 2016,” said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist. “Neighbouring resale markets surrounding the GTA, higher density dwellings and rental over ownership tenure will benefit most from the continued shift in buying patterns.”

Ontario existing home sales will gradually lead the market higher with MLS^® sales growing to 210,500 units in 2015 before slowing to 202,700 units in 2016. MLS^® sales will range between 199,500 to 221,300 units in 2015. Ontario home prices will grow at a slower rate over the forecast horizon.

As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high 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.

For more information, visit www.cmhc.ca or call 1-800-668-2642. CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.

Follow CMHC on Twitter @CMHC_ca

Market Analysis Contact:

Ted Tsiakopoulos
416-218-3407
Cell: 416-579-4992
ttsiakop@cmhc.ca

Media Contact:

Beth Bailey
416-218-3355
Cell: 416-988-4615
bbailey@cmhc.ca

Ontario MLS^® Sales²

Ontario Starts¹ (All Areas)

¹ The outlook is subject to a heightened degree of uncertainty. Although point forecasts are presented in this publication, CMHC also presents forecast ranges and risks where appropriate. The forecasts included in this document are based on information available as of October 22, 2014.

² The term MLS^® stands for Multiple Listing Service and is a registered trademark of the Canadian Real Estate Association (CREA).

Article source: http://www.cmhc.ca/en/corp/nero/nere/2014/2014-10-30-0816b.cfm

TORONTO, October 16, 2014 — Toronto Real Estate Board President Paul Etherington announced that residential sales reported through the TorontoMLS system during the first 14 days of October were up by 12.2 per cent compared to the same period in 2013.  Over the same period, new listings entered into TorontoMLS were up by a lesser 5.9 per cent. 

“We have seen a strong hand-off from the third quarter into the fourth quarter, as sales for all major home types were up.  This suggests that a great diversity of home buyers remain active in today’s market, from first-time buyers looking for affordable home ownership options through to high income households looking to purchase a luxury property,” said Mr. Etherington. 

The average selling price for sales during the first two weeks of October was $583,719 – up by 8.8 per cent compared to the same period in 2013.  Overall price growth continued to be driven by the low-rise market segments, including detached and semi-detached houses and townhouses. 

“Strong annual rates of price growth for low-rise home types were sustained, as sales growth continued to outpace growth in new listings.  Sellers’ market conditions are expected to remain in place for the remainder of 2014 and into 2015 as well.  This means that high single-digit rates of price growth for singles, semis and townhouses will likely remain the norm over the next few months,” said Jason Mercer, TREB’s Director of Market Analysis.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_mid_month_1014.htm

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

October 21, 2014 — According to a new survey by Ipsos Reid, 82 per cent of Canadians are now buying everything from furniture to cosmetics online, spending $954 each year in doing so.

Not surprisingly, 92 per cent of the 18 to 34 demographic have made a purchase online this year, while 82 per cent of those between the ages of 35 and 54, and 74 per cent of those 55 and older have done so as well.

Beyond the convenience it offers, online shopping often provides a simple means of making cross-border purchases, indicating that when it comes to doing business, political boundaries have become less relevant than they were in years gone by, and this certainly applies to real estate as well.

If you have ever considered owning a home in the United States, as a refuge from our long winters, a rental investment or as part of your retirement plans, now may be the time to take the next step. House prices across the United States have begun rising from the ashes of 2008 and interest rates are expected to follow suit in the next year.

By some accounts, a one percentage point increase in US mortgage rates over the next year could result in a substantial increase in monthly mortgage payments. In cities like Los Angeles, New York and Boston, a one percentage point increase could add between $400 and $500 to your monthly mortgage payment. In San Francisco, you could expect to tack on as much as $900 more per month.

As with any home search, your pursuit of a US property can begin online, but eventually, you will want to view a home in person and walk its neighbourhoods. A Greater Toronto REALTOR® can help you begin your search and refer you to a REALTOR® in your area of choice when needed.

It’s important to get a REALTOR®’s advice from the outset because there are a myriad of details to consider when cross-border shopping for a home, beyond just taking into account the number of guest rooms you’ll need.  You will, for example, want to consider travel costs, travel insurance and proximity to an airport. You will also need to set aside funds for property taxes, home insurance, and utilities costs, and keep in mind expenses associated with maintenance and security needs. A REALTOR® can guide you on some of these matters, and direct you to other professionals who can offer advice on additional considerations.

Depending on circumstances, your stay in the US may be limited to a certain number of days per year, and as a result, leasing out your home may make good sense. If you opt for this approach, be sure to enlist the services of a property management company to handle all of the details that arise while you’re not there.

You will also need to consider financing options such as applying for a mortgage through a Canadian bank with a US counterpart or leveraging a current home equity line of credit.

Given current house prices south of the border, buying a home stateside can be an excellent long-term investment; however; it’s essential to speak with legal and financial advisers to understand the different ownership options, legal liabilities and tax implications before doing so. As a first step, talk to a Greater Toronto REALTOR® who has a network of professionals to help you put together your transaction; our individual contact information can be found by visiting www.TorontoRealEstateBoard.com.

Paul Etherington is President of the Toronto Real Estate Board, a professional association that represents 40,000 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, October 17, 2014 — Toronto Real Estate Board President Paul Etherington announced that condominium apartment rental transactions through the TorontoMLS system were up by 20.5 per cent year-over-year in the third quarter to 7,868.  The increase was driven by the popular one-bedroom apartment segment, which experienced an increase in rental transactions of 24.7 per cent compared to the same period last year. 

The number of condominium apartments listed for rent on TorontoMLS during the third quarter was up by 11.7 per cent compared to the third quarter in 2013. 

“The third quarter rental market results were very positive.  We have experienced strong condo apartment completions over the past two years.  Many of these completions have translated into rental listings on the TorontoMLS system.  However, this does not mean we have experienced a glut in supply.  To the contrary, we actually saw growth in transactions outstrip growth in the number of units listed, suggesting there exists some pent-up demand for condo rentals,” said Mr. Etherington. 

Third quarter average rents for one-bedroom and two-bedroom condominium apartments, which accounted for the great majority of rental transactions, were little changed compared to 2013.  Average one-bedroom rents were down by less than one per cent compared to last year and average two-bedroom rents were up by less than one per cent. 

“Rental market conditions in the GTA have tightened over the past two quarters, with growth in rental transactions outpacing growth in listings.  This suggests that we could see some renewed upward pressure on average rents moving forward, as competition between renters increases,” said Jason Mercer, TREB’s Director of Market Analysis.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_rental_report_Q3-2014.htm

TORONTO, October 17, 2014 — Toronto Real Estate Board President Paul Etherington announced a 12.9 per cent year-over-year increase in condominium apartment sales through the TorontoMLS system in the third quarter of 2014.  Sales amounted to 5,954.  New listings of condominium apartments on TorontoMLS were also up compared to the same period last year, by 4.5 per cent. 

“Condominium apartments represent an affordable home ownership option for first-time buyers.  New condominium apartment completions have been at record levels over the past two years.  However, even though many of these newly completed units have been listed on TorontoMLS, we have not experienced a glut in inventory.  There have been enough buyers to keep market conditions balanced, with the average selling price increasing at an above-inflation pace,” said Mr. Etherington.
 

The average selling price for Q3 condominium apartment sales was $359,352 – up by 5.7 per cent compared to the average of $339,878 in Q3 2013.  The average selling price was highest in the City of Toronto, at $382,210, representing a year-over-year increase of 6.1 per cent. 

“Growth in condominium apartment listings will likely continue over the next year, reflecting the continuation of strong condominium apartment completions.  However, the fact that we are seeing growth in condo sales outstrip growth in listings suggests that market conditions will remain tight enough to prompt continued price growth,” said Jason Mercer, TREB’s Director of Market Analysis

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_condo_report_Q3-2014.htm

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

October 10, 2014 — As Canadians, we are fortunate to count ourselves among the most privileged of the seven billion people living in the world today. And thanks to the outstanding quality of life we enjoy, each year Canada draws thousands of people from around the world, some of whom have fled hardships difficult for us to imagine.

It is estimated that there are more than 10 million refugees in the world today, approximately 100,000 of whom resettle in other countries like Canada, which welcomes up to 14,500 of these newcomers each year.

Recognizing that their drive to build a better life benefits our city, Greater Toronto REALTORS® lend a hand to refugees through the Ontario REALTORS Care® Foundation, which supports shelter-related charities throughout the province.

One such organization is Matthew House – a community of three homes in central Toronto that welcomes and assists newly arrived refugee claimants. Its founder Anne Woolger worked for many years at a city-operated shelter, and upon witnessing its shortcomings, she approached church leaders with her vision of establishing a reception home.

In 1998, the first of Matthew House’s three shelters opened its doors, and since that time the organization has served more than 1,000 refugees from 84 different countries.

As part of their stay, all guests are asked to complete daily assigned chores that contribute to the facilities’ operations, while weekly orientation sessions, house meetings and communal meals offer the opportunity for residents to forge new friendships that serve as lifelong support systems.

The organization is even equipped to shelter and guide teens who have arrived in Canada on their own, with a designated transition home where house parents help young guests become oriented and set new goals surrounded by a sense of family and community.

According to Woolger, Greater Toronto REALTORS® are making an important contribution to the organization’s efforts.

 “They have helped us with practical things like our orientation program where we give really practical lessons to our refugee guests about life in Canada transit, budgeting, all of those things – so that they can ultimately be better prepared for living in Canada and contribute in a more valuable way.”

One of the organization’s many success stories is that of Clement, a former high school principal from Zimbabwe whom Matthew House welcomed in December 2005. After earning his PhD in Education on a special scholarship at the University of Toronto, he became an instructor at Centennial College and he now also serves on Matthew House’s Board of Directors.

“I believe it’s kind of a chain link where by feeling healed and whole here they can give back much more richly,” says Woolger.

If you would like to support Matthew House with a financial contribution, a donation of gently used household items or by volunteering, please visit www.matthewhouse.ca where you can find out more about this outstanding organization.

As well, for further information about the many ways that Greater Toronto REALTORS® are making important contributions to the shelter needs of those less fortunate throughout our city, please 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, October 1, 2014 — With less than a month to go before Toronto voters select a new City Council, the Toronto Real Estate Board is continuing to raise concerns about the Toronto Land Transfer Tax with councillor and mayoral candidates. 

“TREB’s municipal election efforts are focused on where the candidates stand on the issues that are a priority to REALTORS® and their clients, especially the Land Transfer Tax. REALTORS® look forward to working with the next City Council to ensure that home buyers and owners are treated fairly,” said Paul Etherington, President of the Toronto Real Estate Board.  

“With that in mind, TREB supports Councillor Ford’s commitment to phase out the Land Transfer Tax.  We believe John Tory understands the problems with the Land Transfer Tax and we hope that he will articulate a plan to provide the relief from this tax that voters want.  On the other hand, TREB does not support Olivia Chow’s proposal to increase the Land Transfer Tax. City Hall should be reducing its reliance on this unfair and hurtful tax, not increasing it,” continued Mr. Etherington. 

Polling conducted by Ipsos Reid in May 2014, found that a majority (51%) of Torontonians are more likely to vote for mayoral or councillor candidates who support reducing or eliminating the Toronto Land Transfer Tax, while only 10 percent would be less likely.  

“Toronto voters want municipal election candidates to commit to providing relief from the Land Transfer Tax.  This tax costs the purchaser of an average Toronto home about $8,000, up front, on top of a similar amount for the provincial Land Transfer Tax.  This is a huge cost that hits people when they can least afford it, like when they need to move because their family is growing or later in life as their lifestyle needs, and income, change.  This is an important issue for many Torontonians, and we expect it will influence their voting decisions,” said Etherington.

Independent research has demonstrated that the Toronto Land Transfer Tax is having a negative impact on the City’s economy.  A 2012 study conducted by the C.D. Howe Institute found that the Toronto Land Transfer Tax has dampened Toronto home sales by 16 per cent annually.  

A new study, released in April 2014, conducted by Altus Group Economic Consulting, found a significant loss of economic activity in the City of Toronto, and a corresponding loss of thousands of jobs, due to the Toronto Land Transfer Tax.  The study found that, between 2008 and 2013, the Toronto Land Transfer Tax is responsible for 

• a loss of $2.3 billion in economic activity
• a reduction of $1.2 billion in GDP
• a loss of 14,934 full time jobs
• a loss of $772 million in wages and salaries
• a loss of 38,278 resale home transactions

 

“The Toronto Real Estate Board looks forward to continuing to highlight the impact of the Toronto Home Buying Tax during the municipal election campaign, and raising this issue, along with the public, with municipal election candidates.  We believe that Torontonians will, once again, expect City Council to take action on this issue,” said Von Palmer, TREB’s Chief Government and Public Affairs Officer.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_LTT_Oct1.htm

TORONTO, October 3, 2014 — Toronto Real Estate Board President Paul Etherington announced that there were 8,051 transactions reported through the TorontoMLS system in September 2014.  This result represented a 10.9 per cent increase compared to September 2013.  On a year-to-date basis through the first three quarters of the year, sales were up by 6.9 per cent annually to 73,465. 

“Despite a persistent shortage of listings in some market segments, we have experienced strong growth in sales though the first nine months of 2014. This is evidence that GTA households remain upbeat about purchasing a home. The majority of home buyers purchase a home using a mortgage. The share of the average household’s income dedicated to their mortgage payment remains affordable, which is why buyer interest has remained solid,” said Mr. Etherington. 

The average selling price for September 2014 transactions was $573,676 – up by 7.7 per cent compared to the same period in 2013.  Average year-over-year price growth was strongest in the City of Toronto, both for low-rise home types like detached and semi-detached houses and for condominium apartments.  The average selling price year-to-date was $563,813 – up 8.5 per cent compared to the first nine months of 2013. 

“If the current pace of sales growth remains in place, we could be flirting with a new record for residential sales reported by TREB Members this year. On the pricing front, the multitude of willing buyers in the marketplace coupled with the short supply of listings will continue to translate into very strong annual rates of price growth in the fourth quarter,” said Jason Mercer, TREB’s Director of Market Analysis.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2014/nr_market_watch_0914.htm

TORONTO, October 8, 2014 — Housing starts in the Toronto Census Metropolitan Area (CMA) trended lower at 29,720 units in September compared to 30,050 in August 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.

“Total housing starts trended lower due to fewer apartment starts. Variations in condominium apartment starts are common due to the altering lengths in time it takes for projects to reach sales targets before construction can commence. Slower sales witnessed during mid 2012 to mid 2013 have translated to fewer starts,” said Dana Senagama, CMHC’s Toronto Senior Market Analyst.

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 15,112 units in September, down from 23,904 units in August. The decrease was mainly attributed to lower starts in the multi-unit segment.

The City of Toronto recorded the highest number of starts in September, which was followed by Brampton and Markham. Toronto’s housing starts were mostly comprised of condominium apartments, and it was the only part of the CMA to see apartment construction started this month.

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.

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.

Follow CMHC on Twitter @CMHC_ca

Information on this release:

Market Analysis Contact:

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

Media Contact:

Beth Bailey
416-218-3355
bbailey@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

Source: CMHC

Source: CMHC

Article source: http://www.cmhc.ca/en/corp/nero/nere/2014/2014-10-08-0816b.cfm