TORONTO, February 3, 2012

“A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership,” said Toronto Real Estate Board President Richard Silver. “The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum,” continued Silver.

The average selling price for January 2012 transactions was $463,534 – up by almost nine per cent compared to January 2011.

“Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year. Strong price growth is expected to attract more listings. A better supplied market should result in a slower rate of price growth, especially in the second half of 2012,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

Last month alone, a total of 4,718 homes changed hands, representing a seven per cent increase over the 4,395 sales reported in December 2010.

Consistent with the month’s strong sales, sellers’ market conditions continued, with the amount of time that homes were available for sale averaging 32 days last month compared to 37 days a year ago.

Year-over-year sales growth in the 905 Region outpaced that of the City of Toronto in December, with increases of more than 12 per cent and seven per cent respectively. In total 2,770 sales took place in the 905 Region while 1,948 transactions occurred in the City of Toronto.

The number of homes newly available for sale in December also increased, by nearly 14 per cent compared to a year ago, with 4,811 new listings last month. Despite the increase in availability, sales generally kept pace with new supply, resulting in continued price growth.

The average cost of a GTA resale home increased four per cent year-over-year to $451,436. Gains were stronger in the 905 Region, with the December average price climbing nearly six per cent to $435,378 and the City of Toronto showing a two per cent increase in its average price, to $474,270.

For all of 2011, the average selling price was up by eight per cent to over $465,000 in comparison to the average of $431,276 in 2010.  We experienced moderate to strong price growth throughout 2011 because market conditions remained very tight because of strong sales growth coupled with a decline in listings.  Enhanced competition between buyers led to strong upward pressure on selling prices.

We can see just how tight the housing market has been in the GTA over the past two years when we consider a new indicator published by TREB: Months of Inventory (MOI).  MOI tells us how long (in months) it would take to completely sell the average number of active listings over the past 12 months given the average number of sales over the same period.  A lower number of months indicate tighter market conditions and vice-versa.  Over the past two years, MOI has been in the 2.0 to 2.5 months range.  This is substantially lower than the pre-recession norm of between 3.0 and 3.5 months.

Despite price growth, the cost of home ownership remains affordable, due to low interest rates and a stable employment picture.  Five-year fixed rate mortgages continue to be available at approximately five per cent while Toronto’s unemployment rate came in at 7.8 per cent in December, an improvement of more than half a percentage point from the previous month.

Moreover, favourable news regarding our country continues to be generated.  A recent study release by the Legatum Institute, which measured the world’s most prosperous nations ranked Canada as the sixth best country in the world based on criteria that have an effect on economic growth and personal well being. The flood of favourable reports on our country in recent months has been tempered though by warnings from the Bank of Canada and the International Monetary Fund regarding Canadians’ high household debt.  This coupled with the potential impact of other nations’ volatile economies should give all Canadians pause for thought.

It is a fiscally conservative approach, with respect to lending practices for example, that has landed our Canada at the top of so many world rankings, and we should continue to exercise the same prudence with respect to household finances.  There’s never been a better time to begin a new mortgage in order to consolidate debt or perhaps even to move to a home better suited to your lifestyle.  To learn more about the process of buying and selling a home visit www.TorontoRealEstateBoard.com.

Richard Silver is President of the Toronto Real Estate Board, a professional association that represents 32,000 REALTORS® in the Greater Toronto Area.

Follow TREB on www.twitter.com/TREBhome, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel

Your thoughts?

Your thoughts??

 

REALTORS® comments were in response to a recent City Finance staff report indicating that the Toronto Land Transfer Tax is expected to generate higher revenue than what was budgeted for 2011.

“What goes up, also comes down. For years, REALTORS® have been warning the City that the Land Transfer Tax is an unpredictable revenue stream because it is based on the number, and value, of real estate transactions, which are very difficult to predict in any given year,” said Richard Silver, President of the Toronto Real Estate Board. “City staff’s recent budget variance report proves how difficult it is to budget based on unpredictable revenue like the Land Transfer Tax. The unpredictability of the Land Transfer Tax might not be a problem when times are good, but what will the City do if real estate markets cool in the middle of its budget cycle and the tax brings in less than expected?”

REALTORS® believe that responsible fiscal management is the only long-term solution to the City’s financial challenges.

“The Toronto Land Transfer Tax is not part of the solution; it is part of the problem. It is a crutch that has delayed the true solutions to the City’s financial challenges, which are a combination of reducing costs and using fair revenue sources, like property taxes and user fees” said Silver

REALTORS® believe that the Land Transfer Tax is an unfair tax because it targets one segment of Torontonians, those purchasing a home or business property, to pay for services provided to all citizens. The Toronto Land Transfer Tax costs the average Toronto home buyer about $6,000 up front. When added to the provincial version of this tax, average Toronto home buyers face over $12,000 in land transfer taxes.

“The first requirement for any tax should be that it is fair. The Land Transfer Tax is far from fair. It forces someone buying a home or business property to pay thousands of dollars more to receive the same services that others receive without paying this tax. That is simply unfair,” said Silver. “On the other hand, property taxes and user fees are much fairer because they are paid by everyone who benefits from, or uses, City services. Property tax and user fee revenue is also predictable and reliable, unlike Land Transfer Tax revenue. Toronto residents also enjoy a very low property tax rate.”

REALTORS® are urging City Council to continue to move forward with reviewing all fair options for getting the City’s finances in order including cost reductions, user fees, property taxes, and efforts to grow its assessment base.

“One of the best ways for City Council to address its budget challenges is to grow the City’s property tax base. Toronto is the only GTA municipality with a second land transfer tax, which puts the City at a competitive disadvantage. Furthermore, the City’s business tax rates, which are much higher than the City’s residential tax rates, are uncompetitive compared to other GTA municipalities. The Toronto Land Transfer Tax and high business property taxes create a double whammy that discourages growth in the City’s property assessment base. Eliminating the Land Transfer Tax and making business property taxes competitive will help to attract new development and keep businesses in the City. Maintaining and growing the City’s property tax assessment base provides long-term, sustainable and reliable tax revenue.”

Adorna is totally irreverent, and exacting in her teaching and understanding of Rules, Regulations and just plain common sense within the Real Estate community.  After a class I asked her to discuss Fiduciary duties and Buyer representation. I loved her response so much that I asked her recently if I could share these explanations with you.

Adorna Carroll Explaining Fiduciary Duties

Mr.and Mrs. Buyer thank you very much for the opportunity to meet with you and I’m very excited that I have this opportunity to discuss with you my most important legal responsibilities.

I am obligated by law to follow your lawful instructions pertinent to the transaction.  My responsibility is provide you with your options and alternatives; discuss the ramifications of your choices and then take a step back and give you an opportunity to think about what you want to do while I wait for your lawful instruction.

I’m here to watch out for your interest above my own. When’s the last time a sales person ever said that, to you? I’m not in sales, I’m in service Mr/Ms Buyer.

Whatever I know in a transaction, you’ll know.  Sometimes it’s fact, sometimes it’s rumour but I’m not allowed to decide what is important for you to know.  I am obligated by law to tell you what your situation is and then you determine if that information is important to you.

My highest responsibility is confidentiality.  I promise you right now I’m an excellent secret keeper and I will not talk about your personal secrets, your financial position, your motivation to sell or your urgency to anyone including the agents in my office.

I am accountable to you by law for your money, your paperwork and your dates so that you will not put any of your deposit money or general funds in jeopardy.

I am obligated to provide you with skills and contentious service.  The minimum required by my license law and regulations is competent service but I am obligated to a higher standard.

Thank you for allowing me to explain our most important legal responsibilities Mr/Ms Buyer. I know that there are a lot of real estate agents in our marketplace but only a true professional would be able to explain them like I did and I would be honoured to represent your interest.

Adorna Carroll Explains Buyer Representation

Once you’ve been pre-approved for your loan, we’ll start to go out shopping for property. When that time comes you will be provided with lists of property that are in your budget range and you will be doing your “homework” by driving around to determine if properties in your price range are in neighborhoods that you may be interested in.

When you see a for sale by owner sign on the front lawn, I just represent you.

When you see another company sign on the front lawn, I just represent you.

When you see our company sign on the front lawn, then my company has two clients in the same transaction – equal treatment, equal information- if I were to know the lowest prices the sellers can accept I can’t tell you, if I know the highest price you’re willing to pay I can’t tell them; you are entitled to know market information and all client confidential nformation (financial situation, motivation, urgency and personal secrets) will never be betrayed- do you have any questions?

She says it so well….

Toronto— From Friday’s Globe and Mail
Published Thursday, Jul. 28, 2011 11:27AM EDT

TREB move to neighbourhood names draws flak

Toronto area house hunters conducting their search online can now search for neighbourhoods by name, as in Roncesvalles or Rosedale.

The names are catchier than their previous designations – W01 and C09 respectively – on the real estate map.

Toronto Real Estate Board president Richard Silver says the overhaul is aimed at making searches easier for members of the public, who often found the zones mystifying.

“It allows you or your agent to search by neighbourhood.”

The changes appear on the website realtor.ca, which displays the Canadian Real Estate Association’s multiple listings service for the public. Real estate boards from across the country contribute listings for realtor.ca.

The geographical areas covered by TREB expand beyond the Greater Toronto Area to include Orangeville to the north, Newcastle to the east and Burlington to the west.

The district names and boundaries coincide with those used by the city and provincial governments, says Mr. Silver.

The names coincide with those used on the city of Toronto website. The recently-launched Wellbeing Toronto hub lets users look for demographic information and services in the city’s 140 neighbourhoods.

The city’s interactive map lets users compare neighbourhoods with data on average family income, crime rates, the number of daycare centres and the location of bus stops, for example.

“It gives you much richer data,” Mr. Silver says. “It will be great for us in the future.”

But some real estate agents say the new method of searching is more confusing for the buyers and sellers they represent.

The long-established name Cabbagetown, for example, doesn’t appear on map to describe the area surrounding Carlton and Parliament. Some homeowners who previously thought their house was in South Riverdale will now find it in Blake-Jones.

Patrick Rocca, an agent with Bosley Real Estate Ltd., says he thinks the idea behind the facelift is very good but there have been glitches.

For example, Mr. Rocca has an automated e-mail sent out each morning to prospective buyers notifying them of the new listings that have come up in their chosen neighbourhoods.

Mr. Rocca received assurances from TREB that the search parameters would remain in place and that automatic emails would still be generated but that wasn’t the case, he says. After the overhaul, the client names were still in place but he had to spend several hours going through his files and setting up the automated searches again.

He adds that some agents are complaining about a shift in boundaries along with the name changes. One loft located near Parliament Street is set in the trendy Distillery District, for example, but on the map it appears in the area called Moss Park, which has less cachet.

Nellie Czopyk, an agent with Royal LePage Supreme Realty says she is working with one buyer who is looking for houses near St. Clair and Dufferin. On the map, some properties appear to be in the area labelled Corso Italia, which sounds too bustling to the client who prefers a quiet setting such as Regal Heights or Hillcrest Village.

“For the consumer who really knows the marketplace, all of a sudden they are questioning me,” she says.

Mr. Silver says TREB has been sending out information to agents for months but he acknowledges that some members have been taken aback.

But he says buyers can now make their search more specific and spend less time looking at superfluous properties. He says it makes sense to keep labels consistent with those assigned by City Hall.

“The one thing I know after 32 years in the business is no one likes change,” says Mr. Silver.

“Low mortgage rates, rising incomes and good news on the jobs front have kept consumers confident in purchasing a home in the Greater Toronto Area. In fact, home buyers are much more confident than they were this time last year when concerns around the HST, interest rate hikes and new mortgage lending rules had temporarily put a damper on home sales,” said Toronto Real Estate Board (TREB) President Richard Silver.

Tight market conditions in the GTA drove a strong rate of price growth through the first two weeks July. The average selling price was $464,277 – up 9.6 per cent compared to the average of $423,773 in July 2010.

“Enhanced competition between home buyers continued to drive strong price growth through the first two weeks of July,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “While new listings were up year-over-year in the first half of the month, seller’s market conditions were sustained as sales grew at an even greater rate.”

Another sign of Spring is the Hidden Gardens and Private Spaces Tour hosted by the Cabbagetown Preservation Association….and this year, our garden will be one of the gardens visited. We will be working hard over the next 6 weeks and are presently just relaying our Patio…there is sand everywhere. I feel like we are at the Beach the past few days but the only water is our little fish pond… However with determination and power washing we hope to pull it off for June 5th and hope that you will join us.