Greater Toronto Area REALTORS® reported 4,133 condominium apartment sales through the TorontoMLS system during the first quarter of 2013. This result was down by approximately 17 per cent in comparison to the first quarter of 2012.

New listings of condominium apartments were also down on a year-over-basis in the first quarter, but by a lesser annual rate of five per cent.

“Buyers benefitted from a substantial amount of choice in the condo market in the first quarter, especially in comparison to low-rise home types. This being said, the fact that new condo listings were down in the first quarter suggests that the market may become tighter moving forward. This will also depend on the timing and scale of future condo apartment completions,” said Toronto Real Estate Board President Ann Hannah.

The average price for first quarter condominium apartment sales was $332,846 – down by 0.5 per cent compared to the same period in 2012.

“With months of inventory high from a historic perspective, it makes sense that the average selling price for condos edged lower over the past two quarters. However, March results were much more positive compared to the first quarter as a whole, with the average condo selling price up by two per cent annually for the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Greater Toronto Area REALTORS® reported a substantial increase in the number of condominium apartments rented through the TorontoMLS system in the first quarter of 2013. There were 4,277 condominium apartments rented – up by almost 13 per cent on a year-over-year basis.

The total number of rental properties listed on TorontoMLS during the first quarter was up by more than 25 per cent year-over-year to 8,816.

“Demand for rental condominium apartments remained strong during the first quarter of the year. People looking for higher end rental accommodation, including those who have temporarily put their decision to purchase on hold, were likely driving rental activity during the first three months of the year,” said Toronto Real Estate Board President Ann Hannah.

The average monthly rent for one-bedroom condominium apartments in the first quarter was $1,597 – up by almost four per cent compared to Q1 2012. The average two-bedroom condominium apartment rent was up by slightly more than one per cent over the same period to $2,114.

“The rental market has remained quite tight over the last year. Competition between renters has been strong enough to drive increases in average rents. However, growth in the number of units listed outstripped growth in the number of rental transactions in the first quarter, suggesting that renters benefitted from more choice. If this trend continues, the pace of rent growth could moderate,” commented Jason Mercer, TREB’s Senior Manager of Market Analysis.

Greater Toronto REALTORS® reported 4,260 sales through the TorontoMLS system during the first 14 days of April, representing a slight dip of less than one per cent compared to the same period in 2012. The reported sales figure did benefit from one extra working day compared to last year, because Good Friday in 2012 fell in April.

“April sales to date, which were driven by strong growth in single-detached home sales in the regions surrounding Toronto, represent a positive start to the spring market. Because market conditions have remained tight, we continue to see average price growth well above the rate of inflation for many home types,” said Toronto Real Estate Board President Ann Hannah.

The average selling price for April mid-month sales was $527,397 – up 4.3 per cent compared to $505,617 in 2012. Rates of average price growth were similar for the City of Toronto and the surrounding regions under the TREB market area.

“The annual rate of price growth so far in April is actually above TREB’s forecast of 3.5 per cent for 2013. Strong growth in the average condo apartment price in the City of Toronto was a key driver in this regard,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

On April 15, the Competition Tribunal announced that it has dismissed an Application initiated by the Commissioner of Competition against the Toronto Real Estate Board (TREB), and ordered costs payable by the Commissioner of Competition to TREB.

The Competition Tribunal stated that its decision is based on its finding that the Toronto Real Estate Board was clearly not acting anti-competitively.

“The Tribunal’s decision was the right decision,” said Ann Hannah, President of TREB. “TREB and its Members will continue to offer the highest possible quality real estate service without sacrificing the privacy rights of consumers.”

This is a substantive decision which unequivocally allows TREB to continue with its current Virtual Office Website (VOW) policy. These VOWs allow consumers to access REALTOR® Members’ secure password-protected websites displaying MLS® listing data. TREB is increasing access and competition while safeguarding the privacy rights of consumers.

Throughout the hearings, TREB stood up for the privacy rights of consumers and will continue to do so. The result reinforces that protecting privacy is not anti-competitive.

“TREB fought against the Competition Bureau’s actions that would have forced TREB to dismantle the safeguards of the MLS® system,” said Von Palmer, Chief Privacy Officer.

“TREB and its Members have a moral and legal obligation to protect consumers’ personal information. Privacy matters, so we fought back.”

TREB appreciates the efforts and support of The Canadian Real Estate Association on the matter.

TREB is committed to protecting the quality of the MLS® system and the superior service TREB Members offer their clients while safeguarding the privacy rights of consumers.

Greater Toronto Area REALTORS® reported 7,765 transactions through the TorontoMLS system in March 2013 – down 17 per cent compared to 9,385 transactions in March 2012. While the year-over-year dip in March sales followed the trend that has unfolded since mid-way through 2012, it is also important to note that the Good Friday holiday was in March this year versus April in 2012. Generally speaking, there are fewer sales reported on statutory holidays and weekends.

In the first quarter of 2013, sales amounted to 17,678 – down by 14 per cent compared to Q1 2012.

“Home ownership remains affordable for a household earning the average income in the Greater Toronto Area. There are many willing buyers in the marketplace today. While some households have put their decision to purchase on hold as a result of stricter lending guidelines or the additional Land Transfer Tax in the City of Toronto, other households simply haven’t been able to find the right house due to a shortage of listings in some market segments,” said Toronto Real Estate Board President Ann Hannah.

The average selling price in March was $519,879 – up by 3.8 per cent compared to March 2012. The average price in Q1 2013 was $508,066 – up by 3.2 per cent compared to the first quarter of 2012.

“The average selling price and the MLS® Home Price Index Composite Benchmark was up on a year-over-year basis across most home types, especially in the low-rise market segments where supply remains an issue. TREB’s average price forecast for 2013 remains at $515,000, representing a 3.5 per cent annual rate of growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Toronto Real Estate Board Commercial Division Members reported 4,547,945 square feet of space leased through the TorontoMLS system in the first quarter of 2013. This represented a decrease of 4.5 per cent in comparison to Q1 2012. Leased industrial space – the key market segment for TorontoMLS leasing – amounted to 3,563,287 square feet, or 78 per cent of total leased space in Q1.

Average lease rates for transactions where pricing was disclosed were up on a year-over-year basis for all major property types. The average industrial lease rate was $5.15 per square foot net – up by 4.4 per cent compared to Q1 2012. Average lease rates for commercial/retail and office properties were up to $15.67 and $13.11 per square foot net respectively.

“Following a year-over-year dip in the fourth quarter of 2012, growth resumed for the average industrial lease rate, which was up by more than the rate of inflation in the first quarter of this year. While the outlook for the Canadian economy has been uncertain over the past year, the increase in the average industrial lease rate could be indicative of heightened demand for industrial space as some businesses anticipate an improvement in goods production and exports in 2013 and beyond,” said TREB Commercial Division Chair Cynthia Lai.

There was a total of 274 industrial, commercial/retail and office sales through the TorontoMLS system in Q1 2013. This sales total was down from 334 sales in Q1 2012. The average selling price per square foot for industrial transactions where pricing was disclosed was slightly lower, at $61.10 compared to $66.80 last year. The average selling prices for commercial/retail and office transactions were up on a year-over-year basis.

“Average selling prices do experience some volatility on a quarter-by-quarter basis, often due to a change in the types of properties being sold in different market segments. That being said, investment metrics for industrial properties in particular including surveyed cap rates and average prices from non-TorontoMLS sources suggest that pricing should remain buoyant this year. This is especially the case given that growth in the Canadian economy is expected to accelerate in 2013,” continued Lai.

Each year the change of seasons prompts many people to make a move to their next home and thanks to the added incentive of today’s extremely low interest rates, this year will be no exception.

While many of life’s major transitions involve some nail biting, buying or selling a home needn’t require a leap of faith thanks to all of the information that is available through TorontoRealEstateBoard.com, a website that Greater Toronto REALTORS® developed with your needs in mind.

Gaining insight into the market should be a first step in preparing for your move and doing so is simple with reports on current conditions, updated twice monthly, on TorontoRealEstateBoard.com.

Through the Market Watch report, produced at the close of each month, you’ll gain detailed information specific to your neighbourhood like the month’s sales, average prices, and the number of days on market. To stay up to date, be sure to check in at mid-month for a snapshot of current conditions.  There’s even a quarterly report designed just for those interested in the condo market. If you prefer to take in information visually, videos and charts that capture market information are also available.

Accurate financial planning is also key to a successful move and to help you prepare, the website includes calculators that determine land transfer tax costs and rebates where applicable. You will also find information on a wide range of government programs designed to help homebuyers and sellers.

Learning about a number of other factors that may affect your transaction is beneficial as well. Videos and articles will give you insight into issues like the importance of signing a Buyer Representation Agreement, the requirements of anti-money laundering legislation and the type of information that is safeguarded to protect your privacy.

When you’re ready to make a foray into the market be sure to consult a REALTOR®. Ask your friends, family and colleagues for referrals and use the website’s Find a REALTOR® search function to get contact details in one click.

Once you have made this important choice, you can work with your REALTOR® to identify homes suited to your needs by browsing available properties in the Greater Toronto Area through the website’s direct link to REALTOR.ca You’ll even find a directory of open houses scheduled in your area.

Negotiating the terms of an agreement is one of the many areas where your REALTOR’s® skills and knowledge can help you achieve a successful outcome. You can also strengthen your position though, by familiarizing yourself with the standard forms used in a transaction. Plain language explanations of them are also available on TorontoRealEstateBoard.com

Equipped with all of this information you’ll definitely increase the likelihood of a favourable transaction however; it’s no substitute for real world experience. That’s where your REALTOR® comes in. By taking advantage of all of the tools and skills they have to offer you will set yourself up for the strongest outcome possible.

For more information to help you get started be sure to visit www.TorontoRealEstateBoard.com

Ann Hannah is President of the Toronto Real Estate Board, a professional association that represents 36,000 REALTORS® in the Greater Toronto Area.

In light of a proposal to cap the Toronto Land Transfer Tax, being considered by the City of Toronto’s Executive Committee today, the Toronto Real Estate Board (TREB) is restating its strong belief that this tax should be phased-out.

 “The Toronto Land Transfer Tax should be scrapped, not capped.  We are encouraged that the Executive Committee is considering action on the Land Transfer Tax, but, not only is capping not enough to correct the problems that this tax is creating for our City, it could make this bad tax even worse,” said Ann Hannah, President of the Toronto Real Estate Board.

 In a letter to the Executive Committee, TREB has pointed out that, based on reported details, the proposed capping scheme could create considerable uncertainty for home buyers, if, as proposed, surpluses in Land Transfer Tax revenue are dedicated for reducing the tax in the subsequent year.  Under this scenario, home buyers could be artificially encouraged to delay home purchases, thus interfering with the natural operation of the real estate market.   This concern has also been articulated by renowned municipal finance expert, Enid Slack of the University of Toronto, who was recently quoted by the media as saying “If you want to reduce the land transfer tax, why would you not just reduce the tax rate, and say the tax rates are going down, so there is some certainty for taxpayers going forward? With this method (capping), they’re not going to know what the tax rate is next year.”

 “The best approach is a phased elimination of this tax.  The only way to truly solve the problems that this tax is creating for our City is to get rid of it; and with a predictable phase-out strategy, home buyers could make informed decisions and City Council could set a reasonable schedule, which would make market distortions unlikely, ” said Von Palmer, TREB’s Chief Government and Public Affairs Officer.

 Research has proven that municipal land transfer taxes have a negative impact on home sales. The C.D. Howe Institute recently released an analysis of the Toronto Land Transfer Tax, which shows that this tax has hurt Toronto’s economy by dampening home sales by 16 per cent.  This is supported by a recent poll conducted by Ipsos Reid, which found that 77 per cent of GTA residents planning to purchase a home in the next two years are more likely to purchase outside Toronto specifically to avoid paying the Toronto Land Transfer Tax.  This poll also found that nearly seven in ten Torontonians, 68 per cent, support plans to eliminate the Toronto Land Transfer Tax.

 “Capping equals keeping. That’s not good enough for our City and it’s not what Torontonians want. The public has repeatedly made it clear that they want the Land Transfer Tax scrapped,” said Palmer.

Greater Toronto Area REALTORS® reported 3,594 transactions through the TorontoMLS system during the first 14 days of March 2013 – down 11.5 per cent compared to the same period last year. The number of new listings was up by less than two per cent.

“With sales down and listings up slightly, the GTA market was better supplied in the first half of March compared to last year. This fact notwithstanding, there has been enough competition between buyers to promote moderate to strong upward pressure on average selling prices for most home types on an annual basis,” said Toronto Real Estate Board President Ann Hannah.

“The average price for condominium apartments in the City of Toronto was up over last year. If this price growth continues, it may indicate that conditions are tightening slightly in this segment,” added Ms. Hannah.

The average selling price for the first two weeks of March was up by almost six per cent year-over-year to $532,102. Average prices were up for all major home type categories.

“Due to tight supply, the average annual rate of price growth for singles, semis and towns continues to far outpace the rate of inflation. The condo apartment segment has been a mitigating factor, which is why our forecast for price growth in 2013 remains at approximately 3.5 per cent or $515,000 for all home types combined,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Toronto Real Estate Board (TREB) Commercial Division Members reported 460,884 total square feet of leased space through the TorontoMLS system in February (based on lease transactions for which pricing was disclosed). This result represented a year-over-year increase of 16 per cent in comparison to February 2012.

Industrial properties accounted for approximately 83 per cent of total lease transactions. The average industrial lease rate associated with February transactions was $5.13 per square foot net – up by more than 6.5 per cent compared to February 2012.

“It is a positive sign to see that both the industrial square footage leased and the average industrial lease rate was up in February. I am cautiously optimistic, but we will likely continue to see some volatility in the number and size of transactions from month to month. Economic growth in Canada continues to trend below average and economic uncertainty persists south of the border,” said TREB Commercial Division Chair Cynthia Lai.

Combined sales of industrial, commercial/retail and office properties were down in February compared to the same period last year. By market segment, industrial and commercial/retail transactions were down, but these declines were partially offset by an increase in office transactions.

Average selling prices, for transactions where pricing was disclosed, were down for industrial and office properties, while there was a large spike in the average price for commercial/retail properties. This large commercial/retail price increase was largely compositional in nature. In February 2012, the great majority of transactions involved larger properties which generally sell at a lower price per square foot. In comparison, February 2013 commercial/retail transactions involved an increased share of smaller properties, which resulted in a substantially higher average selling price this year.

“While the latest Gross Domestic Product growth results dealing with the fourth quarter of 2012 were below average, it was encouraging to note that business investment was up, including outlays on non-residential buildings. I am hopeful that this increased investment will translate into more transactions as we move through 2013,” continued Lai.