TREB & BILD Stress That Demand for Home Ownership Remains Strong

Author: Toronto Real Estate Admin / Category: Toronto Realtor

TORONTO, November 25, 2014 — Greater Toronto, November 25, 2015 – Demand for home ownership remains strong in the GTA, and dynamics around housing supply are impacting prices and redefining the market, said the Building Industry and Land Development Association (BILD) and the Toronto Real Estate Board (TREB) at their first ever joint briefing on the state of the GTA housing market.

Through the first 10 months of 2015, there were 124,123 new and resale homes sold in the GTA. A record number of sales were reported through TREB’s MLS(R) system. New home sales reported by RealNet Canada Inc. (an Altus Group Company) were consistent with the 10-year average, but the mix and type of new homes being sold as well as their prices have changed.
Total new home inventory levels have remained within the normal range at 26,388 homes, but more than 81 per cent of those homes are high-rise condominiums, according to RealNet Canada Inc. (an Altus Group Company).

Builder inventory of new low-rise homes, including detached, semi-detached and townhomes, was at 4,980 homes at the end of October, a near record low. As of October 31, there were 10,014 low-rise properties available for sale on TREB’s MLS(R) system. There were 16,079 new and 12,773 existing low-rise homes available for sale at the end of October 2005. While the supply of low-rise homes has trended lower over the last decade, demand has remained strong, pointing to more competition between buyers and very strong price growth.

The average price of a new low-rise home as of October 31, 2015 was $802,376 – more than double the average price in 2005, which was $387,369.

A similar trend has been noted for TREB MLS(R) transactions. The MLS(R) HPI Single-Family Benchmark Price increased to $669,400 in October 2015 from $363,100 in October 2005.

The new high-rise market saw an increase in supply in the last 10 years. There were 21,408 new high-rise homes available for sale across the GTA at the end of October 2015 compared to 13,006 a decade ago. The average price of a new high-rise unit was $440,382, up from $288,587 in 2005.

Price growth for TREB MLS(R) transactions was similar over the same time period with the MLS(R) HPI Apartment Benchmark Price in October at $331,400 compared to $207,800 in October 2005. It is important to note that while we have seen strong new condominium apartment completions and subsequent new listings on TREB’s MLS(R) system, these newly listed units have been largely absorbed. Far from seeing a glut in supply, the months of inventory trend has declined and growth in the MLS(R) HPI Apartment Benchmark Price has accelerated compared to last year.

The size of new condominiums brought to market has decreased over the last 10 years. The average new high-rise home in October 2015 was 767 square feet, compared to 908 square feet in 2005.
“As an industry we continue to find innovative ways to provide a range of housing choices,” said BILD Chair Steve Deveaux, vice-president of Tribute Communities. “But it is becoming increasingly challenging to design, build and sell the homes that many people – especially first-time buyers – want to and can afford to purchase.

For new homes, single-detached homes saw the largest year-over-year price increase in October. The average price of a new detached home in the GTA was $962,312.

“To comfortably afford that home with a 20 per cent down payment, the buyer would need an annual income of $174,854,” Deveaux said. “With a smaller down payment, the required income would be even high

er. According to Statistics Canada, the average total family income in the Toronto area in 2013 was $107,200.”

The development industry is building more condominiums than it did a decade ago, but as the GTA continues to grow by up to 100,000 people every year, demand for low-rise homes has not decreased.
Deveaux said that demand for detached, semi-detached and townhomes is outpacing supply, which is limited due to a lack of serviced land designated for development.

TREB president Mark McLean said the industry is concerned about the disconnect between some current government policy initiatives and homeownership affordability. TREB cites the Ontario government’s plan to allow municipalities to charge their own municipal land transfer tax as the most recent example.

“Homebuyers in the GTA presently benefit from a diversity of new and existing home options that are affordable at different income levels,” McLean said. “Sadly, the provincial government seems bent on hampering home ownership affordability. Studies have shown that municipal land transfer taxes will have a negative impact across Ontario, not only from an affordability perspective, but also by undermining our economy and costing thousands of jobs.”

Government fees and taxes amount to an average of one-fifth the cost of a new home in the GTA, according to a BILD-commissioned study in 2013. This drives up the cost of new homes and later trickles down to the resale market.

The organizations stated that it’s important for governments to educate residents about the effects public policy changes will have on the state of the housing market in the GTA.

“This industry is extremely important to the economic growth and prosperity of our cities and it’s important for GTA residents to understand what drives and impacts it,” Deveaux said.


About BILD
With more than 1,450 members, BILD, formed through the merger of the Greater Toronto Home Builders’ Association and Urban Development Institute/Ontario, is the voice of the land development, home building and professional renovation industry in the Greater Toronto Area. BILD is proudly affiliated with the Ontario and Canadian Home Builders’ Associations.

About TREB
Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 42,000 residential and commercial TREB Members serve consumers in the Greater Toronto Area. TREB is Canada’s largest real estate board.

For additional statistical information or to set up an interview, contact Andrei Zaretski or Amy Lazar.

Mary Galagher
Senior Manager,

Toronto Real Estate Board
416-443-8158 or 416-419-8133

Andrei Zaretski
Public Affairs Manager, Marketing Media Relations
Building Industry and Land Development Association
416-391-3450 or 416-843-4898

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TREB’s President’s News Beat: Planning For Your Down Payment

Author: Toronto Real Estate Admin / Category: Toronto Realtor

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

Novembe 13, 2015 — It can feel frustrating. You’ve cut back on your daily double soy lattes, your impulse buying, even cut down on your overall debt, but you may feel like you are no closer to owning your own home. In speaking to would-be first-time home buyers, saving for your down payment doesn’t have to feel like a dream.

In today’s real estate market, there are ways to reach your ultimate home buying goal. While you need may need to consult with a financial advisor in regards to your individual savings plan, there are a few programs you should consider that may help build up that nest egg, or lower the overall amount that you may need.

The Home Buyers Plan (HBP) is a program that allows you to withdraw up to $25,000 from your Registered Retirement Savings Plan (RRSP) to buy or build a qualified home. Your RRSP issuer will not withhold tax on withdrawals that meet applicable HBP conditions. Before you can withdraw funds, however, you must have entered into a written agreement to buy or build a qualifying home which you must occupy no later than one year after buying or building the home. An interesting point: If you are buying a qualifying home together with your partner or other individuals, each of you can withdraw up to $25,000. That can certainly help build up the funds required for your down payment.

If your down payment is less than 20 per cent of the value of the home you want to buy, you can take advantage of CMHC’s Mortgage Loan Insurance program. With as little as five per cent down payment from personal or other sources, home buyers have access to mortgage insurance, as long as you can meet the standards for a five year fixed-rate mortgage. The mortgage insurance protects only the lending institution in case of default, and is usually added to the overall total loan amount to be amortized. That support is available to both first-time and repeat home buyers, and can certainly help lower your overall cost of entry into the market. In fact, in 2014, CHMC insured more than 308,000 housing units.

Be sure to explore your real estate options as well. Is a condo a possibility? Expanding your neighborhood search? Completing your own upgrades over time? Paring down your wish list for that fireplace or extra bathroom? Your REALTOR® has the expertise to run you through all the options so that you can make an informed choice, and find the ideal house for your lifestyle.

For more details on any of these programs, and for rebates you may be entitled to after you have purchased your home, talk to a Toronto Real Estate Board Professional REALTOR® or visit for updates on the market. If commercial property is what interests you, contact a TREB Commercial Professional Member REALTOR® by visiting

Mark McLean is President of the Toronto Real Estate Board, a professional association that represents 42,000 REALTORS® in the Greater Toronto Area.

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Housing Starts in Toronto Trend Higher in October 2015

Author: Toronto Real Estate Admin / Category: News Bulletin

TORONTO, November 9, 2015 — Housing starts in the Toronto Census Metropolitan Area (CMA) trended at 45,765 units in October compared to 45,782, in September 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.

“Single-detached and condominium apartment starts trended higher in October,” said Dana Senagama, CMHC Principal Market Analyst for the GTA. “Tight conditions in the resale market for single-detached homes have caused demand to spill over into the new home market. Pre-construction condo sales, which began increasing in mid-2013, are also converting to starts.”

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 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 38,722 units in October, down from 58,016 units in September. This was largely the result of a smaller number of apartment starts this month.

The City of Toronto had the highest number of total starts, most of which were apartment units. Brampton had the next highest number of starts with single-detached home starts dominating construction, followed by Mississauga where apartment starts dominated construction.

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.

Follow CMHC on Twitter @CMHC_ca

Information on this release:

Media Contact:

Angelina Ritacco

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

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