Resale Housing Figures for May 2013

Greater Toronto Area REALTORS(R) reported 4,476 transactions through the TorontoMLS system during the first 14 days of May. This result represented a decline of 9.7 per cent compared to the same period in 2012. Sales declines were larger for the City of Toronto, at 11.4 per cent, versus the surrounding regions where sales were down by 8.6 per cent year-over-year.

"Despite fewer sales this year compared to last, competition between buyers in most segments of the market remained strong enough to promote annual rates of price growth above the rate of inflation. A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home," said Toronto Real Estate Board President Ann Hannah.

The average selling price during the first two weeks of May was $543,838 - up by 5.4 per cent in comparison to the same time frame last year. Price growth was strongest for low-rise home types, but positive price growth for condo apartments in the City of Toronto was also reported.

"Continuing the prevailing trend over the last year, the low-rise segment of the market drove overall price growth during the first half of May, as months of inventory remained below historic norms for key home types," said Jason Mercer, TREB's Senior Manager of Market Analysis.

Toronto real estate GREAT YEAR FOR TORONTO REAL ESTATE

Total sales for 2011 amounted to 89,347 – up four per cent in comparison to 2010, reported TREB.

“Low borrowing costs kept buyers confident in their ability to comfortably cover their mortgage payments along with other major housing costs,” said TREB President Richard Silver. “If buyers had not been constrained by a shortage of listings over the past 12 months, we would have been flirting with a new sales record in the Greater Toronto Area.”

The average selling price in December was $451,436 – up four per cent compared to December 2010. The annualized hike is even greater. For all of 2011, the average selling price was $465,412, an increase of eight per cent in comparison to the average of $431,276 in 2010.

“Months of inventory remained below the pre-recession norm in 2011. Very tight market conditions meant substantial competition between buyers and strong upward pressure on selling prices,” said Jason Mercer, TREB’s senior manager of market nalysis.

“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate four per cent annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” said Mercer.

TORONTO REAL ESTATE NEWS AND STATISTICS

Greater Toronto REALTORS® reported 4,337 transactions through the TorontoMLS® system in January 2011. This result was 13 per cent lower than the record result reported in January 2010.

The average selling price for January 2011 sales was $427,037, representing an increase of over four per cent compared to the average of $409,058 reported in January 2010.

In January, the median price was $360,000, from the $350,000 recorded during January of 2010.

Canada Mortgage and Housing Corp. (CMHC) says condos now account for a quarter of all new residential construction.

Luxury condos – priced at more than $1 million in Toronto – are up by 49 per cent year-over-year, reports Re/Max. Condos priced at more than $750,000 in Ottawa have seen sales increase by about 72 per cent compared to last year.

CMHC says that Canadians are not giving up on homeownership until after they reach the age of 75. With owners of all ages choosing the condominium lifestyle, expect to see a lot more of those building cranes in urban areas during the next several decades. 

If you have any questions about Toronto real estate, call Alexandre Malkhassiants, Sales Representative and Mortgage Specialist. Right at Home Realty Inc., Real Estate Brokerage. Office: (416) 391-3232. Cell: (416) 723-9383. E-mail: amalkhass@rogers.comWebsite: Toronto real estateWebsite: Ontario real estateBlog: Lowest Canada mortgage rates

Toronto real estate. TORONTO REAL ESTATE MARKET UPDATE

Record breaking warm temperatures in March helped bring out buyers during the first two weeks of the month.

The Toronto Real Estate Board reported 4,353 existing home sales, up 70 per cent from the same time last year, when the market was in recession.

But sales were also strong enough to break the mid-month peak set in March of 2006 by 16 per cent, according to the board.

“The spring-like weather in the first half of March brought the first green sprouts of the recurring spring market,” said board president Tom Lebour.

The average price for March mid-month transactions was $440,153, up 20 per cent over last year.

Some good news for buyers was that new listings improved by 34 per cent over last year.

“Look for double digit price increases to cease later in 2010, as new listings rebound from the low levels experienced in 2009,” said Jason Mercer, TREB’s senior manager of market analysis. “Increased listings will give buyers more choice, resulting in less upward pressure on home prices.”

If you want to know more about Toronto real estate, call sales representative and mortgage agent Alexandre (Alex) Malkhassiants, Right at Home Realty,  with all your questions: (416) 723-9383 (cell).

Toronto real estate. TORONTO REAL ESTATE MARKET CONTINUE TO SURPRISE

Perhaps it was those uncharacteristically high temperatures that had homebuyers out in droves in the first two weeks of November. Certainly, they had gotten over the doom and gloom of the first two weeks of last November.

According to the Toronto Real Estate Board, realtors reported 3,666 sales, a staggering 84% up on the same period last year. Prices year-over-year rose a more modest, but still impressive, 10% to hit an average of $415,066.

"Increased interest in ownership housing has been widespread throughout the GTA and across all housing types," notes TREB president Tom Lebour in a release. "However, it is important to point out that we are now making comparisons to the fall of 2008 when we experienced a marked decline in sales and average price."

The numbers for year-to-date sales also rose a healthy 11% compared with the same period in 2008, to reach 78,233. The average price for this period was $393,180 a 3% rise over the same period last year.

"Sales and average price in the GTA this winter will be well above levels reported throughout the fourth quarter of 2008 and the first quarter of 2009," notes Jason Mercer, TREB's senior manager of market analysis in a release.

Across Canada, sales had increased in the month of October. According to numbers from the Canadian Real Estate Association, home sales activity through the Multiple Listing Service was the highest ever for an October. The Canadian real estate boards reported 42,288 residential sales, a 41.5% hike over the same month last year. The year-to-date total rose to 401,124, a 1.6% increase on the same period last year.

The average sale price in October was $341,079, a 20.7% rise on last year.

"Low interest rates and upbeat consumer confidence continue to release the pent-up demand that built late last year and earlier this year," notes CREA president Dale Ripplinger in a release. "The release of that pent-up demand has boosted national sales activity to new heights and is drawing down inventories."

The marked rise in resale housing demand has continued to reduce inventories of unsold homes. In October, MLS had 194,994 homes listed for sale, down 20.8% on the same month last year.

New homes in the GTA's 905 region have also skyrocketed, with home builders showing a 173% increase in low-rise sales for the month, compared with October 2008.

Activity may have been on the rise in Canada, but south of the border where tentative signs of recovery had been evident, October housing starts and building permit numbers came as a rather nasty shock.

Builders' sentiment also remained rather gloomy. The National Association of Home Builders/Wells Fargo Housing Market Index showing builder confidence in the market for newly built, single-family homes remained unchanged at the low level of 17 in November.

Residential housing starts for last month, released by the U.S. Department of Housing, plunged an unexpected 10.6% from September, coming in at a seasonally adjusted annual rate of 529,000. That's 30.7% down on the October 2008 rate. The rate for single-family housing starts in October was 476,000, a 6.8% decrease from September. Multiple family units also fell 15.2% month-over- month in October to reach 89,000 units. These numbers bring construction to the lowest level since April.

Building permits in October, required long before construction begins, were also down. Overall permits fell 4% from September to a seasonally adjusted annual rate of 552,000. This is 24.3% down from October last year. The single- family permits component inched down 0.2% month-over-month to reach a rate of 451,000 in October. However, permits for multiple units were up 6% month-over- month to 123,000.

Analysts found some positives.

"There will still be people buying homes, either for the first time or moving up, thanks to the extended and expanded government tax credit," notes Jennifer Lee, economist, manager at BMO Capital Markets. "But in the meantime, it will take a while before residential construction begins to contribute meaningfully to growth."

If you want to know more about Toronto real estate, call sales representative and mortgage agent Alexandre (Alex) Malkhassiants, Right at Home realty,  with all your questions: (416) 723-9383 (cell).