Greater Toronto Area REALTORS® reported 5,793 sales in November 2012 – down by 16 per cent compared to November 2011.

“Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012,” said Toronto Real Estate Board (TREB) President Ann Hannah.

“Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages, have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront Land Transfer Tax takes money away from buyers that otherwise could be used for a larger down payment,” continued Ms. Hannah.

The average selling price was up by 1.6 per cent annually to $485,328. The MLS® Home Price Index (MLS® HPI) Composite Benchmark was up by 4.6 per cent compared to last year.

“The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over one-million dollars was down substantially, which influenced the overall average price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The MLS® HPI detached benchmark price, which tracks the price for a home with the same attributes over time, was up by almost six per cent in Toronto, suggesting that market conditions for low-rise homes remain quite tight despite a changing mix of sales,” added Mercer.

In light of new polling results that show strong opposition, specifically among Mississauga and other “905” region residents, to municipal land transfer taxes, REALTORS® are calling on the City of Mississauga to shelve its current consideration of a municipal land transfer tax.

“This poll shows that the public understands that land transfer taxes are the wrong way for municipalities to solve their financial challenges. This type of tax creates more problems than it solves. ” said Ann Hannah, President of the Toronto Real Estate Board, which represents 35,000 REALTORS® across the Greater Toronto Area, including more than 5,000 in Mississauga.

The poll was conducted by Ipsos Reid in November 2012 and found:

• 77 per cent of Mississauga residents, and 83 percent of all 905 residents combined, are opposed to the imposition of a municipal land transfer, in their municipality, to offset municipal deficits or to put towards increased spending on infrastructure and other city programs;
• 89 per cent of all 905 region 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.
• 70 per cent of Toronto 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.

“If levied at the same rate as the Province and the City of Toronto, a Mississauga Land Transfer Tax would cost the buyer of an average Mississauga detached home about $10,000, payable upfront. It is unfair to expect people like down-sizing seniors, or young growing families who need more space, to pay so much more than their fair share”, said Hannah.

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. In addition, the Ipsos Reid poll found that 25 per cent of the people who recently purchased a home in Toronto would have spent their land transfer tax money on furnishings or appliances, if they had not had to give it to the City, and 21 per cent would have spent it on renovations.

“Housing sales create jobs because when people move they spend money on things like renovations, movers, appliances, and furnishings. The research has proven that municipal land transfer taxes dampen home sales. Every housing sale that would be lost as a result of a municipal land transfer tax would risk Mississauga jobs,” added Hannah.

These are some of the findings of an Ipsos Reid poll conducted between November 24th and 29th, 2012, on behalf of the Toronto Real Estate Board. For this survey a sample of 1,112 residents of the GTA from Ipsos’ Canadian online panel was interviewed online. Weighting was then employed to balance demographics to ensure that the sample’s composition reflects that of the adult population according to Census data and to provide results approximate the sample universe. The precision of Ipsos online polls are measured using a credibility interval. In this case, the poll is accurate to within +/- 3.4 percentage points of all residents in the GTA region. The credibility interval will be larger for sub-groupings of this population. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

In celebration of National Housing Day November 22nd the Toronto Real Estate Board (TREB) is teaming up with related organizations to host a symposium, highlighting positive initiatives and challenges related to affordable housing.

“Quality of life is a key contributing factor to the Greater Toronto Area’s solid world standing and it all begins with creating quality affordable housing options that develop into healthy communities,” said Toronto Real Estate Board President Ann Hannah.

“In addition to the key contribution home ownership makes to quality of life in our city, it also has wide reaching economic effects, with the sale of each home generating more than $40,000 in spin-off spending on things like furniture, appliances, renovations, and financial and legal services.”

Organizations participating in the symposium include Habitat for Humanity Toronto and the City of Toronto.

“We believe that one of the most important contributions we can make to Toronto’s future is to foster opportunities for the people of our city to create a better life through affordable home ownership,” said Councillor Ana Bailão, Chair of the City of Toronto’s Affordable Housing Committee.

The symposium will also feature guest speaker John Tory, who will share his thoughts on affordable homeownership initiatives and the importance of eliminating poverty housing in Toronto. A Corporate Director and Broadcaster, Mr. Tory is also Chair of CivicAction, an organization that convenes civic leaders from various sectors to stimulate change on issues facing the Greater Toronto region.

“Developing affordable housing solutions is a formidable challenge but government, industry, non-profit organizations and the private sector are demonstrating that through our cooperative efforts progress is being made,” said Ms. Hannah.

In the past year Greater Toronto REALTORS® have sponsored two Habitat for Humanity Toronto homes, while contributing to construction efforts as well.

“It is thanks to the support of organizations like TREB that the volunteers of Habitat for Humanity Toronto have been able to build more affordable homes than ever before” said Habitat for Humanity Toronto Chief Executive Officer Neil Hetherington. “Our combined efforts put Habitat’s partner families on the path to a better life and in doing so, create a better city for us all to enjoy.”

A number of other shelter-related causes also benefit from Greater Toronto REALTORS’® support through the REALTORS® Care Foundation, which offers grants throughout the province on an annual basis.

Last year alone, GTA REALTORS supported 35 local shelter based charities and raised almost $400,000 for shelter charities.

Greater Toronto REALTORS® also help consumers achieve their home ownership goals on a daily basis by offering insight into options that make home buying more affordable such as the Five Per Cent Down Payment Program, the RRSP Home Buyers’ Plan and various tax rebates.

“According to recent Habitat for Humanity Toronto studies, the benefits of home ownership include improved financial stability, physical health, personal safety and academic performance, and an April 2012 report released by the National Association of REALTORS® in the United States substantiates these findings, also showing health and educational benefits as well positive effects on factors such as crime, civic participation, and property improvement,” said Ms. Hannah.

Given the far reaching effects of home ownership, Greater Toronto REALTORS® are committed to underscoring the importance of National Housing Day.

The National Housing Day Symposium takes place November 22nd, 2012 from 7:30am to 10:00am at Spirale Banquet and Conference Centre located at 888 Don Mills Road in Toronto.

For more information on government programs for homebuyers and property owners please visit www.TorontoRealEstateBoard.com

For more information on Habitat for Humanity Toronto please visit www.torontohabitat.ca

For more information about the City of Toronto’s Affordable Housing Office, please visit:  http://www.toronto.ca/affordablehousing/index.htm

For more information, please contact:
Toronto Real Estate Board
Mary Gallagher, Senior Manager, Public Affairs
416-443-8158 maryg@trebnet.com

Habitat for Humanity Toronto
Joanna M. Dwyer, Marketing & Stakeholder Relations
416-755-7353 x 259 jdwyer@torontohabitat.ca

City of Toronto’s Affordable Housing Office
Nicole Stewart, Assistant Housing Development Officer
416-392-4223 nstewar@toronto.ca

Greater Toronto Area REALTORS® reported 2,687 transactions through the TorontoMLS system during the first two weeks of November.  This result represented a 17.5 per cent decline compared to the same period in 2011.

“The reduction of the maximum amortization period to 25 years translated into higher mortgage payments.  Some households will have to save more money for a down payment before purchasing a home, in order to offset these higher mortgage costs.  This is more difficult in the City of Toronto, where households must pay an additional land transfer tax up front.  The abolishment of this tax would allow buyers to have a larger down payment,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price during the first 14 days of November was $488,647 – up by 1.7 per cent in comparison to the first 14 days of November 2011.  The median selling price over the same period was up by a greater rate of four per cent to $416,000.  The stronger rate of growth for the median selling price suggests that fewer high-end homes sold this year compared to last.

“During the first half of November, there were fewer luxury detached homes sold as a percentage of total transactions compared to last year.  The year-over-year change in the mix of detached homes sold in the GTA, rather than a change in market conditions, was responsible for a lower than normal increase in the average detached home price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Toronto Real Estate Board (TREB) Commercial Division Members reported almost 791,000 square feet of leased commercial space in October 2012 (calculated for transactions completed on a per square foot net basis for which pricing was disclosed). This represented a 41 per cent increase compared to October 2011.

Following the historic norm for commercial transactions through the TorontoMLS system, industrial lease agreements accounted for 87 per cent of lease transactions on a square foot basis. The average industrial lease rate was $3.97 per square foot net – down by eight per cent compared to the average rate reported for October 2011.

“I am cautiously optimistic about the fact that overall lease transactions through the TorontoMLS system were up year-over-year in October. Business investment has been and is forecast to continue to be a major driver of Canadian economic growth. It makes sense that some of this investment has and will be pointed toward the commercial real estate market in the Greater Toronto Area,” said TREB Commercial Division Chair Cynthia Lai.

“It is likely that we will continue to see some volatility in monthly commercial transactions. Economic growth in Canada is still being constrained by global economic difficulties, which have acted as a drag on the Canadian export sector. As a result, manufacturing output remains below the pre-recession peak, which remains an issue for the industrial real estate market,” continued Lai.

The number of commercial sales in October was down by almost 11 per cent year-over-year to 49. Sales of industrial properties were up compared to October 2011, but this increase was more than offset by declines in commercial/retail and office transactions.

Annual growth in average selling prices per square foot (for transactions where pricing was disclosed) was mixed. The average industrial selling price was down, whereas average commercial/retail and office prices were up compared to October 2011. Price growth can be effected by changing market conditions as well as differences in the mix of properties sold in one year versus the next.

Greater Toronto Area REALTORS® reported 6,896 transactions through the TorontoMLS system in October 2012 – a decrease of 7.1 per cent compared to October 2011. There were two more business days in October 2012 versus October 2011. On a per business day basis, transactions were down by 15.6 per cent.*

“Sales have decreased in the second half of this year compared to 2011, especially since the onset of stricter mortgage lending guidelines at the beginning of July. The prospect of higher monthly mortgage payments due to the reduced maximum amortization period has prompted some households to delay their home purchase,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for October transactions was $503,479 – up 6.2 per cent compared to October 2011. The MLS® Home Price Index composite benchmark price, which allows for an apples-to-apples comparison in terms of home attributes, was up by 5.1 per cent.

“We continue to see price increases well above the rate of inflation. Active listings have remained low from a historic perspective, so substantial competition between buyers still exists, especially for low-rise homes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“It should be noted, however, that the annual rate of price increase has been edging lower over the past few months as the market has gradually become better supplied,” continued Mercer.

*NOTE: The majority of transactions are entered into the TorontoMLS system on business days. There was a mismatch of two business days in September and October of 2012 compared to the same months last year. This is why sales on a per business day basis were noted in releases dealing with these months. The business day anomaly between the two months has now balanced out.

Media representatives are invited to attend the Toronto Real Estate Board’s Annual General Meeting taking place Tuesday, October 23, 2012 at the Toronto Congress Centre.

What: Toronto Real Estate Board’s Annual General Meeting

When: October 23, 2012 at 10:30am – 12:00pm

Where:
Toronto Congress Centre – NORTH BUILDING
650 Dixon Road
Etobicoke , ON M9W 1J1
(416) 245-5000

Contact: Mary Gallagher – Cell 416-419-8133

PLEASE CHECK IN –ask for Mary Gallagher

Martin Grove Road exit to Toronto Congress Centre’s North Building, Ballroom.

Greater Toronto Area REALTORS® reported 5,241 rental transactions involving condominium apartments through the TorontoMLS system in the third quarter of 2012. This result represented a three per cent increase compared to the third quarter of 2011. Over the same time period, the number of condominium apartments listed for rent increased by 18 per cent annually to 8,845.

“The high number of condominium apartment completions in the GTA in 2011 and the beginning of 2012 has been well-documented. Some of these newly completed units are owned by investors who have a longer term investment time horizon. These investors have chosen to rent their units out to generate cash flow,” said Toronto Real Estate Board (TREB) President Ann Hannah.

One-bedroom and two-bedroom condominium apartments accounted for 95 per cent of rental transactions in the third quarter. Average rents were up on a year-over-year basis for both apartment types, increasing by almost 3.5 per cent for one-bedroom units and over two per cent for two-bedroom units.

“Rental market conditions remained tight in the third quarter, but average annual rent increases were not as strong compared to most of the previous year. Growth in rental listings outpaced growth in rental transactions over the past six months. Prospective renters had more units to choose from, which led to less upward pressure on rents,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Greater Toronto Area REALTORS® reported 4,541 condominium apartment sales through the TorontoMLS system in the third quarter of 2012. This result represented a 20.5 per cent decline in transactions compared to the third quarter of 2011. Over the same period, the number of new listings was up by more than 6.5 per cent to 11,456.

“The condominium apartment market was the best supplied market segment in the third quarter of this year. Strong condominium apartment completions in 2011 and the first half of 2012 resulted in many investor-held units listed for sale. At the same time, sales dropped off relative to last year as some buyers moved to the sidelines as stricter mortgage lending guidelines resulted in increased costs of home ownership,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for condominium apartments in the third quarter, at $334,204, was flat in comparison to the same period last year.

“With more listings to choose from and fewer sales, condo buyers have not been as aggressive with regard to offers, and sellers have had to price their units competitively. The result was little upward pressure on the average selling price compared to last year. Given the supply of listings currently in the market place, the average rate of price growth for condo apartments should continue to lag price growth for low-rise home types over the next year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Greater Toronto Area REALTORS® reported 2,961 sales through the TorontoMLS system during the first 14 days of October 2012. The number of transactions was down by 10.5 per cent compared to the same period in 2011. New listings were up by 5.5 per cent year-over-year to 6,505.

“Some households have put their home purchase plans on hold in response to the higher cost of home ownership brought about by the recent changes to mortgage lending guidelines. Both first-time buyers and existing home owners have been affected, given that sales were down across house types and geography,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for sales reported from October 1 through October 14 was $501,146 – up by almost six per cent in comparison to last year.

“The average selling price grew well above the rate of inflation in the first half of October due to relatively tight market conditions from a historic perspective. However, the market continued to become better supplied, pointing toward a slower pace of price growth as we move into 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.