Real Estate Information

The Government of Canada recently announced adjustments to the rules for government guaranteed mortgages aimed at protecting and strengthening the Canadian housing market. The new measures include:

• Fixing the maximum amortization period for new government-backed mortgages to 35 years;

• Requiring a minimum down payment of five per cent for new government-backed mortgages;

• Establishing a consistent minimum credit score requirement; and

• Introducing new loan documentation standards.

For more details, see the following link http://www.fin.gc.ca/news08/08-051e.html

July 17, 2008 -- Moderate activity and strong prices continued to characterize the Greater Toronto Area (GTA) resale housing market during the first half of July, Toronto Real Estate Board President Maureen O’Neill announced today.

“The average price in the GTA during the first half of July was $379,072, which is a one per cent increase from the $374,254 recorded in the first two weeks of July 2007 and a nine per cent increase from $346,267 recorded during the same period in July 2006,” said Ms. O’Neill.

In the 416 area, the average price was $419,199, up one per cent from the $414,321 recorded during first half of July 2007 and up 14 per cent from the $367,541 recorded during the same period two years ago.

At $353,257 the 905 region’s average price was up two per cent from $345,741 recorded in the first half of July 2007 and up six per cent from $332,733 recorded during the same period in July 2006.

“Continued strength in house prices throughout the GTA indicates that consumers continue to recognize the value of real estate as a long-term investment,” said Ms. O’Neill.

Sales activity remained moderate in the first half of July, with 3,497 homes changing hands in the GTA. This is a decrease of 11 per cent from the 3,947 sold in the same period in 2007 but an eight per cent increase from the 3,251 transactions recorded in the first two weeks of July 2006. Sales in the first two weeks of July 2007 saw a 21 per cent increase from mid-July 2006.

In the 416 area there were 1,369 sales, down 17 per cent from the 1,641 recorded during the first two weeks of July 2007 but up eight per cent from the 1,264 sales recorded in the same period in July 2006. Before the Land Transfer Tax went into effect, sales increased 30 per cent in the first half of July 2007 compared to the same period in July 2006.

Sales in the 905 region came in at 2,128 in the first half of the month, down eight per cent from the 2,306 recorded during the same period last year but up seven per cent from the 1,987 sales recorded during the first half of July 2006. Sales in the first two weeks of July 2007 saw a 16 per cent increase over mid-July 2006.

Activity in certain areas increased in the first half of this month.

Bowmanville (E17) saw a 12 per cent overall increase in sales due to an increase in detached home transactions.

Brampton (W24) sales increased 18 per cent, driven primarily by a significant increase in semi-detached home transactions.

The Annex (C02) experienced a 70 per cent increase in sales largely due to an increase in detached home transactions.

“Although the number of available has increased 25 per cent compared to a year ago, from 21,777 to 27,317 listings, the number of days on market remains the same at 32, which is a positive sign,” said Ms. O’Neill.

July 4, 2008 -- The trend toward more balanced market conditions continued in June with 8,600 changing hands, Toronto Real Estate Board President Maureen O’Neill announced today.

It is important to note that in this release you will also find market numbers specific to the resale housing activity in 2006 and 2007. This comparison is provided to help present a more accurate perspective of the resale housing market of 2008.

At $395,866, the Greater Toronto Area average price for last month increased by four per cent compared to June 2007 when it was $381,963. The City of Toronto’s average price of $433,082 last month increased three per cent from $421,139 in June 2007. In the 905 Region, last month’s average was $370,559, an increase of four per cent, from $355,240 in June 2007.

In the first two quarters of 2008, the average GTA price increased four per cent to $390,054 from $373,719 during the same time period in 2007, and up 9 per cent from the $356,977 recorded in the same period in 2006.

In the City of Toronto, the average price in 2008 increased four per cent to $427,198 from $411,530 in 2007, and up 10 per cent from $389,313 during the same period in 2006. In the 905 Region the increase was five per cent to $365,536 from $347,852 a year ago, up 9 per cent from
$334,220 in 2006.

“Although June 2008 sales in the Greater Toronto Area (GTA) have declined 18 per cent to 8,600 from the June 2007 total of 10,451, June 2007 was the best performance ever for that month,” said Ms. O’Neill.

“This year we’re seeing a return to calmer conditions but the market remains healthy. When compared to the 8,730 transactions in June 2006, GTA sales activity in June 2008 decreased by only one per cent.” Record month June 2007 saw a 20 per cent increase over June 2006.

In the City of Toronto there were 3,481 transactions last month, a decline of 18 per cent from June 2007 with 4,238 sales but down 4 per cent over the 3,641 transactions in June 2006. When you compare record month June 2007 with June 2006, a period before the Toronto Land Transfer Tax went into effect, sales increased 16 per cent.

The 905 Region experienced an equivalent decline of 18 per cent, with 5,119 sales last month compared to 6,213 transactions in June 2007 but a one per cent increase over the 5089 sold in June 2006. When you compare record month June 2007 with June 2006, sales in the 905
Region increased by 22 per cent.

In the first two quarters of 2008, GTA sales declined 14 per cent to 43,685 transactions from 50,648 during the same time a year ago and down five per cent from the 45,797 recorded in the same period in 2006. When you compare the first two quarters of 2007 with the same period in 2006, GTA sales increased by 11 per cent.

In the City of Toronto, sales for the first two quarters declined 15 per cent to 17,370 from 20,574 in 2007 and down 8 per cent from 18,917 in 2006. In the 905 Region sales declined 12 per cent to 26,315 from 30,074 in 2007 and down 2 per cent from 26,880 in 2006. However, when you compare the first two quarters of 2007 with the same period in 2006, sales increased by 9 per cent in the City of Toronto and by 12 per cent in the 905 Region.

“The increase in listings we have seen in recent months has resulted in a slightly longer period during which homes are on the market, from 29 days a year ago to 34 days currently,” said Ms. O’Neill. “This has given buyers and sellers a little more time to make well-considered decisions.”

In certain pockets however, the pace of sales remained brisk this June. Brooklin (E19) experienced a 35 per cent increase in overall sales based on strong detached home transactions.

Burlington (W25) saw a 65 per cent increase in activity, driven by detached home transactions and even more robust attached/row house sales.
In Downtown East (C08), activity was up four per cent due to attached/row house and condominium apartment sales.

“We expect to see balanced market conditions continue in the coming months,” said Ms. O’Neill. “When you look at it from a long-term perspective real estate invariably provides stable returns.”

Go to complete copy of TREB’s Market Watch Report.

June 18, 2008 -- The Greater Toronto Area (GTA) resale housing market continued at a moderate but healthy pace throughout the first half of June, Toronto Real Estate Board President Maureen O’Neill announced today.

Prices continued their upward trend in the first half of this month. The GTA average price is currently $398,542, up four per cent over the $384,576 average from the same timeframe a year ago and up 11 per cent from the $358,648 recorded at mid-June 2006.

In the City of Toronto the current average price is $439,469, up three per cent over the $424,888 average a year ago and up 14 per cent over the $386,960 average in the first half of June 2006.

In the 905 Region the average price is $371,686 up four per cent from the $357,359 average a year ago and up 10 per cent from the $338,578 recorded at mid-June 2006.

In the City of Toronto 1,733 sales took place to mid-June 2008. This represents a 15 per cent decrease compared to the 2,045 sold a year ago but a two per cent increase over the 1,690 transactions in the first half of June 2006. A different story emerges when you compare the first half of June 2007 before the Toronto Land Transfer Tax went into effect to the same period in June 2006, a period showing a 21 per cent increase in sales.

“With 4,374 transactions in the first two weeks of this month, sales in the GTA declined 14 per cent compared to the same timeframe a year ago when 5,074 were sold,” said Ms. O’Neill. “However, compared to the first half of June 2006 when 4,074 changed hands, this month’s activity is up seven per cent.

In the 905 Region, the scenario was similar. In the first two weeks of June, 2,641 were sold. This represents a 13 per cent decline compared to the 3,029 homes sold in the first half of June 2007 but an 11 percent increase over the 2,384 sold at mid-June 2006. When you compare the first half of June 2007 to the same period in June 2006, sales increased by 27 per cent.

Certain communities including Riverdale, West Agincourt, Caledon and Richmond Hill South experienced strong activity in the first half of this month.

In Riverdale (E01) transactions increased 28 per cent compared to the first half of June 2007 driven by strong condominium apartment sales.

Condominium apartment transactions also drove West Agincourt (E05) to a 24 per cent increase in sales compared to the same timeframe a year ago.

In Caledon (W28) detached home transactions lead to a nine per cent increase in sales over the same period a year ago.

Richmond Hill South (N03) also experienced strong detached home sales, which resulted in a five per cent increase from mid-June 2007.

“With employment and interest rates holding steady and a 17 per cent increase in available listings compared to a year ago, it is an ideal time to take advantage of all that the market has to offer,” said Ms. O’Neill.

June 16, 2008 -- With the City of Toronto’s Affordable Housing Committee hearing input from the public about a proposed affordable housing strategy today, the Toronto Real Estate Board (TREB) is calling on the City to take action on affordable housing.

“Actions speak louder than words. REALTORS® are encouraged that the City is developing an affordable housing strategy, but recent City decisions, especially the implementation of the Toronto Land Transfer Tax, directly contradict this initiative,” said Maureen O’Neill, President of TREB.

TREB submitted its input in a detailed written submission, which raised concerns about new and increasing City-imposed costs on home ownership including a land transfer tax, property taxes, development charges, garbage fees, and water rates. TREB’s submission calls on the City to use the forthcoming affordable housing strategy to reverse this trend.

“All levels of government, including the City of Toronto, should do their part to address affordable housing challenges. With the forthcoming strategy, the City can send a strong message that it supports home buyers,” said O’Neill.

The proposed strategy sets specific targets for the number of households to assist in various categories. TREB is calling on the City to increase the number of households that it is targeting to assist with achieving home ownership.

“Addressing affordable housing requires comprehensive solutions. Owning a home is the preferred option for most people. The City can, and should, include ambitious targets for home ownership in its affordable housing strategy,” said O’Neill. To help achieve ambitious home-ownership targets, TREB believes that City-imposed housing costs
should be reduced.

“The easiest way for the City to contribute to affordable housing solutions is to reduce the costs that it imposes on home buyers and owners. The Toronto Land Transfer Tax is one of the biggest costs faced by home buyers, and it should be rolled back,” said O’Neill. “Development charges also add costs for homebuyers; they should be kept fair and the City should consider targeted exemptions for affordable housing.”

Balance returns to recreational property markets across Canada this year, says RE/MAX

After an extended period of extraordinary growth, more balanced market conditions have emerged in recreational property markets across the country, according to a report released today by RE/MAX.

The RE/MAX Recreational Property Report found that a substantial increase in the supply of recreational listed for sale, combined with fewer buyers overall, characterized most recreational markets this year. Of the 45 markets surveyed, 91 per cent (or 41 markets) were in the transition stage, moving from strong sellers into balanced market conditions. The only exceptions were Salt Spring Island, two markets in Saskatchewan—Last Mountain Lake and Qu’Appelle Lakes and Lakes Candle, Emma, and Waskesiu -- and Newfoundland’s East Coast —where inventory levels were relatively low. Affordability was a primary factor in 35 per cent of markets surveyed, given serious upward pressure on recreational values in recent years.

Market conditions have shifted, but bargain basement prices or fire sales are not expected. The recreational market continues to experience solid demand -- a trend that should continue throughout 2008. The influx of new listings has yet to translate into downward pressure on recreational property prices. Prime waterfront , while more plentiful than in years past, will still command top dollar.

Adverse winter weather conditions during the first four months of the year hindered recreational activity. Sixty-seven per cent of markets reported softening in the number of sales year-to-date, while average prices remained stable or experienced moderate increases over 2007 levels for the same period. Economic concerns, fueled by negative GDP growth in the first quarter and soaring energy costs, have also played a role in the transitioning market.

The market is coming off the longest period of economic expansion since World War II. Recreational property values have experienced substantial increases across the country. More balanced market conditions are a welcome change for purchasers.

For the first time in many years, in fact, a good selection of entry-level waterfront is available in markets across the country. Eighteen per cent of those surveyed offer under the $200,000 price point, including; Central South Cariboo in British Columbia; Parry Sound, East Kawarthas and Kingston in Ontario; Summerside, PEI; South Shore, Nova Scotia; Shediac, New Brunswick; and the East Coast of Newfoundland.

Recreational property buyers also found themselves divided between two borders this year. The housing market meltdown in the US combined with a Canadian dollar at par created serious investment opportunities for secondary in Florida, Arizona, Texas, and California. Some of those very same factors have spurred American recreational property owners in Canada to list their for sale, with many looking to take advantage of ideal market conditions here.

Many Canadians are capitalizing on market conditions in major American centers. For some purchasers, the move is strictly a short-term investment strategy with a pay-off at the end of the day; while for others, retirement is the main objective.

The report also found that younger buyers were a factor in 40 per cent of recreational markets surveyed.

Baby boomers are clearly not the only purchasers that appreciate the recreational lifestyle. Generation X is quickly becoming a force in the marketplace, spurring demand for condominium product on ski hills, oceanfront in good surf locales, and water frontage on trendy lakes with celebrity residents.

Other highlights:

? Alberta’s red-hot economy has helped boost recreational property markets in British Columbia, Atlantic Canada, and some parts of Ontario.
? Affordability is prompting buyers to consider back lots, riverfront, condominiums, hobby farms and leased land.
? Some purchasers looking to secure an exit strategy are buying recreational or secondary homes in residential neighbourhoods in close proximity to the water’s edge.

Spooked by skyrocketing energy prices, the Bank of Canada has suddenly reversed its interest-rate policy.

Governor Mark Carney caught everyone off guard yesterday by announcing the central bank's trend-setting rate would remain unchanged at 3 per cent, ignoring widespread calls for the bank to continue its string of rate cuts that started last fall.

In making its decision, the bank weighed economic weakness such as Ontario's shrinking manufacturing base against inflationary pressure building up due to soaring prices for oil and other commodities. Inflation won, leaving Ontario businesses without the rate relief many have been pleading for.

Yesterday's about-face reflected the bank's challenge of steering the economy of the entire country even as specific regions show divergent economic trends. While Ontario is in a slump, resource-rich provinces such as Alberta are riding high.

"If there were such a thing as the Bank of Ontario, they would have been cutting rates today," said BMO Capital Markets deputy chief economist Doug Porter.

In its statement, the bank said its interest rate policy is appropriate to "bring aggregate demand and supply into balance and to achieve the 2 per cent inflation target." Several economists predicted the bank will stand pat on interest rates until next year and could begin to raise rates in 2009.

Though the bank acknowledged the weakness in Canada's economy from the near-recessionary situation in the United States, Carney left no doubt that he was more worried about the potential for runaway inflation at a time when crude oil has hit $130 a barrel.

"Overall, global growth has been stronger and commodity prices have been sharply higher than expected," the bank said.

It said that "if current levels of energy prices persist," the consumer price index will rise later this year above 3 per cent.

Carney has called a 2 per cent target for fighting inflation his most important goal.

June 4, 2008 -- The Greater Toronto Area resale housing market recorded 9,411 transactions in May, Toronto Real Estate Board President Maureen O’Neill announced today.

On a year-over-year basis the GTA average price increased four per cent to $398,148 in May from the May 2007 average of $382,787. Prices increased three per cent in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 Region there was a five per cent increase to $374,629 from $355,341 last May.

“Price gains show that real estate continues to be a solid investment for the consumer,” said Ms. O’Neill. “We are confident about the market because employment in the GTA continues to be strong and interest rates remain low. As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable.”

“May’s sales figures represent a 16 per cent decline in the GTA from the record month a year ago when 11,146 sales were recorded,” said Ms. O’Neill. “More than 9,000 changing hands still represents considerable market activity.”

In the City of Toronto, there were 3,711 sales, down 19 per cent from last May’s 4,578 sales and down 6 per cent from May 2006. In the 905 Region, 5,700 transactions were recorded, which represents a 13 per cent decline from the 6,568 sales during the same period a year ago but up 4 per cent from May 2006.

“The Toronto Land Transfer Tax has been in effect for four months and the decline in sales has been running for the same time period,” said Ms. O’Neill. “We’re keeping a close watch on the effect of this new tax.”

Two specific areas North of Toronto experienced increased sales activity in May. In Uxbridge (N16) sales were up 10 per cent, while Stouffville (N12) saw a 12 per cent increase in sales, driven mainly by detached home transactions.

Go to complete copy of TREB’s Market Watch Report.

In the first four months of 2008, leased condominium activity transacted through the TorontoMLS system increased nine per cent to 3,075 townhouse/apartment units.

Want to know how the rents are growing?

See Detailed Report

Hope You'll find the report informative.

Are you thinking of buying a condo Apt. for investment or otherwise?

Go to our Home Search website at www.FindMyGTAHome.com and fill in your requirement. Then each morning you will be emailed a list of all of the new properties for sale and price changes since your previous search. No more having to rely on manual searches.

With Best Wishes,

Manoj Kumar Arora, Broker

The Ace Team

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