January 2015 Housing Starts in Toronto

Author: Toronto Real Estate Admin / Category: News Bulletin

TORONTO, February 9, 2015 — Housing starts in the Toronto Census Metropolitan Area (CMA) trended at 25,290 units in January compared to 25,480 in December 2014 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.

“Toronto housing starts in January 2015 continued to trend at a similar level compared to the previous month. However, condominium apartment starts reached an eleven month high,” said Dana Senagama, CMHC’s Toronto Senior Market Analyst. “The recent bounce back in high rise starts activity has been expected due to an increase in pre-construction high-rise sales since mid-2013”.

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 37,102 units in January 2015, up from 26,321 units in December 2014. The increase was the result of a significant increase in apartment starts.

The City of Toronto recorded the highest number of starts in January, made up of mostly condominium apartments. The next highest level of starts was recorded in Vaughan, which saw the next largest number of condominium apartment units begin construction. This was followed by Brampton, which recorded the highest number of single-detached home starts.

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

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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

Media Contact:

Beth Bailey

Follow CMHC on Twitter @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/2015/2015-02-09-0816b.cfm

Housing Market Supported by Ontario Economy in 2015

Author: Toronto Real Estate Admin / Category: News Bulletin

TORONTO, February 6, 2015 — Momentum in the Ontario housing market will be sustained through most of 2015 before slowing next year, according to the First Quarter 2015 CMHC Housing Market Outlook released today. Ontario annual home starts will grow to 63,200 in 2015 before easing to 60,500 units in 2016. Ontario home starts will range between 54,800 and 68,100 units this year.

“An improving economy will be more supportive of the Ontario housing market in 2015 than it has been in the recent past. However, as home prices continue to grow, particularly for single family homes, 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 shift in buying patterns,” added Tsiakopoulos.

Ontario existing home sales will gradually lead the market higher with MLS® sales growing to 209,700 units in 2015 before slowing to 202,700 units in 2016. MLS® sales will range between 188,800 to 220,500 units in 2015. Ontario home prices will grow at a slower rate over the forecast horizon.

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For more information, call 1-800-668-2642.

CMHC Market Analysis standard reports are also available free for download at http://www.cmhc.ca/housingmarketinformation.

Market Analysis Contact:

Ted Tsiakopoulos
Cell: 416-579-4992

Media Contact:

Beth Bailey
Cell: 416-988-4615

Follow CMHC on Twitter @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 January 21, 2015.

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/2015/2015-02-06-0816b.cfm

Governments of Canada and Ontario Celebrate New Affordable Rental Housing in Ottawa

Author: Toronto Real Estate Admin / Category: News Bulletin

OTTAWA, ONTARIO, February 6, 2015 — The governments of Canada and Ontario celebrated the official opening of 140 Den Haag Drive in Ottawa today. The construction of this new rental housing property has supported economic growth and helped create 185 jobs in Ontario while helping meet the housing needs of low-income individuals and families, and people with disabilities in Ottawa.

Royal Galipeau, Member of Parliament for Ottawa-Orléans, on behalf of the Honourable Candice Bergen, Minister of State (Social Development); the Honourable Madeleine Meilleur, Member of Provincial Parliament for Ottawa-Vanier, on behalf of the Honourable Ted McMeekin, Minister of Municipal Affairs and Housing; and Jim Watson, Mayor of the City of Ottawa, made the announcement today.

“I am delighted to celebrate the opening of this apartment complex today,” said MP Galipeau. “Because of our Government’s smart investments, more affordable rental options are available to families and individuals, and this is great news for our community.”

“A home provides a stable foundation that can help people rise out of poverty. Our government is committed to helping prevent and reduce poverty in Ontario”, said Madeleine Meilleur, MPP for Ottawa-Vanier. “Projects like this make a meaningful difference in the community by improving access to suitable and affordable housing for our most vulnerable residents.”

The $8.23 million investment provided by the federal and provincial governments has been used to create 74 new rental housing units at 140 Den Haag Drive. The building also houses the administrative offices for Ottawa Community Immigrant Services Organization (OCISO) Non-Profit Housing. The affordable rental project consists of an eight-storey apartment building offering 1-, 2-, and 3-bedroom units, and ten 4-bedroom townhouses on either side of the building with individual street entrances. All tenants have access to a roof garden located on the third floor, as well as on-site laundry facilities with card-operated machines and a bicycle room on the ground floor. The building also features four stories of photovoltaic solar panels on the south-facing facade, as well as a sedum green roof.

As part of the Homelessness Partnering Strategy (HPS), the Surplus Federal Real Property for Homelessness Initiative (SFRPHI) made the surplus federal real properties available to the City of Ottawa for housing and housing support services to help stabilize the living arrangements of those at risk of becoming homeless. The investment is complemented by $2.8 million in municipal grants, land contribution and waived charges from the City of Ottawa. “This new housing property is a prime example of how we are making a difference in the lives of those who need it the most,” said Mayor Jim Watson. “With this building, we are providing large families with homes that meet their space requirements and we are reducing their wait times for access to much-needed housing. The City’s Ten-Year Housing and Homelessness Plan will continue to make investments in our community that help our most vulnerable residents in the years to come.”

This funding comes as a result of the $481 million Investment in Affordable Housing 2011-2014 Agreement between the Governments of Canada and Ontario.

Annually, the Government of Canada, through Canada Mortgage and Housing Corporation (CMHC) invests approximately $2 billion in housing. These investments improve the quality of life for low-income Canadians and households living in existing social housing, including individuals who are homeless or at-risk of homelessness, seniors, persons with disabilities, recent immigrants and Aboriginal people. Economic Action Plan 2013 continued this commitment with a federal investment of more than $1.25 billion over five years to renew the Investment in Affordable Housing to 2019. The Government of Canada will ensure that funds provided to provinces and territories support the use of apprentices, which will support training of skilled labour.

Ontario continues to build new affordable housing and repair existing units for Ontarians with housing needs. Since 2003, Ontario’s funding commitment of more than $4 billion – which includes extending the Investment in Affordable Housing Program – is the largest affordable housing program in the province’s history. Ontario is supporting the creation of more than 20,000 affordable rental housing units; making more than 275,000 repairs and improvements to social and affordable housing units; and, providing rental and down payment assistance to more than 90,000 households in need. The province’s Long-Term Affordable Housing Strategy sets a strong foundation for a more efficient, accessible affordable housing system in Ontario.

Supporting affordable housing is part of the government’s economic plan for Ontario. The four part plan is building Ontario up by investing in people’s talents and skills, building new public infrastructure like roads and transit, creating a dynamic, supportive environment where business thrives, and building a secure savings plan so everyone can afford to retire.

Affordable housing is a key component of Ontario’s Poverty Reduction Strategy. To find out more about affordable housing in Ontario, visit www.ontario.ca/housing.

For more information about affordable housing in Ottawa, visit http://ottawa.ca/en/residents/social-services/homelessness-and-affordable-housing.

To find out more about how the Government of Canada and CMHC help Canadians meet their housing needs, call CMHC at 1-800-668-2642.

Media contacts:

Dean D’Souza
Public Affairs Central
Canada Mortgage and Housing Corporation

Mark Cripps
Office of the Minister of Municipal Affairs and Housing

Media Contact
City of Ottawa

Conrad Spezowka
Ministry of Municipal Affairs and Housing

See related speech

Article source: http://www.cmhc.ca/en/corp/nero/nere/2015/2015-02-06-0900.cfm

GTA REALTORS® Report Monthly Resale Market Figures

Author: Toronto Real Estate Admin / Category: Toronto Realtor

TORONTO, February 4, 2015 — Toronto Real Estate Board President Paul Etherington announced a strong start to 2015, with robust year-over-year sales and average price growth in January. Greater Toronto Area REALTORS® reported 4,355 home sales through the TorontoMLS system during the first month of the year. This result represented a 6.1 per cent increase over January 2014. During the same period, new listings were up by 9.5 per cent. 

“The January results represented good news on multiple fronts. First, strong sales growth suggests home buyers continue to see housing as a quality long-term investment, despite the recent period of economic uncertainty. Second, the fact that new listings grew at a faster pace than sales suggests that it has become easier for some people to find a home that meets their needs,” said Mr. Etherington.  

The average selling price for January 2015 home sales was up by 4.9 per cent year-over-year to $552,575. The MLS® Home Price Index (HPI) Composite benchmark was up by 7.5 percent compared to January 2014. 

“Home price growth is forecast to continue in 2015. Lower borrowing costs will largely mitigate price growth this year, which means affordability will remain in check. The strongest rates of price growth will be experienced for low-rise home types, including singles, semis and town houses. However, robust end-user demand for condo apartments will result in above-inflation price growth in the high-rise segment as well,” said Jason Mercer, TREB’s Director of Market Analysis.

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2015/nr_market_watch_0115.htm

REALTORS® to Present Views on 2015 City Budget to Budget Committee

Author: Toronto Real Estate Admin / Category: Toronto Realtor

TORONTO, February 2, 2015 — The Toronto Real Estate Board (TREB) will be making a deputation to the City of Toronto’s Budget Committee today, as part of the City’s Budget consultations.  TREB will be recommending adjustments to tax policy that could help City Council address the City’s affordable housing challenges, an issue that Mayor Tory has made a priority. 

“The Toronto Real Estate Board applauds Mayor Tory for making the City’s housing needs a priority.  Few issues are more important,” said Paul Etherington, TREB President.  “REALTORS® agree that housing must be a priority for Council.  In particular, we believe that the City can play a critical role in helping Torontonians to achieve home ownership, and that ownership housing can, and does, help the City achieve its affordable housing goals”.

TREB will be pointing out that City assistance can help people to purchase a home, which in turn can help alleviate pressure on the City’s social housing wait list.   In fact, a survey released by the City’s Affordable Housing Office, in 2012, found that 14% of people who achieved home ownership, with assistance from the City, were either previously living in Toronto Community Housing or on the social housing wait list.  By helping these people to become homeowners, the City freed up Toronto Community Housing and took pressure off the wait list.  With this in mind, TREB will be telling the City’s Budget Committee that the City can help more people like this to become homeowners by correcting current Land Transfer Tax policy inequities, which hurt those who can least afford it, such as first-time buyers.  

“TREB continues to believe that the Land Transfer Tax should be phased out entirely.  Nevertheless, we are focusing our current recommendations on actions that we believe are realistic and that can, and should, be taken starting with the City’s 2015 budget,” said Etherington. 

TREB will be making two recommendations to the City’s Budget Committee, to address inequities caused by neglecting to adjust the Land Transfer Tax for inflation since it was implemented in 2008. TREB’s first recommendation is to increase the maximum allowed rebate for first-time buyers.  

“As a result of rising house prices since the Land Transfer Tax was implemented, the average LTT paid to the City has increased by a whopping 102%,  but the maximum allowed rebate for first-time buyers has been left unchanged, significantly reducing the actual benefit to first-time buyers. Under the current structure, even a first-time buyer purchasing a below average priced home would NOT be exempt from land transfer tax and be forced to pay thousands of dollars to the City,” said Von Palmer, TREB’s Chief Government and Public Affairs Officer. 

TREB’s second recommendation is that the LTT’s tax rate thresholds be adjusted upward to account for inflation since this tax was implemented seven years ago. 

 “Currently, the highest LTT rate of 2% kicks in on homes priced at or above $400,000, which was the average home price when this tax was first implemented in 2008, but is significantly below  the current average Toronto home price,  which was $610,000 in 2014.  This means that even purchasers of below average priced homes are currently being forced to pay the highest LTT rate,” said Palmer.   

TREB believes that affordable housing is a critical issue for the City of Toronto.

“ We believe that the two adjustments to the Land Transfer Tax that we are recommending could significantly help more people to become home owners and help the City to achieve its affordable housing goals,” said Von Palmer, TREB’s Chief Government and Public Affairs Officer

Article source: http://www.torontorealestateboard.com/market_news/release_market_updates/news2015/nr_toronto_budget_2015.htm