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

Toronto, December 6, 2011

The poll was conducted by Ipsos Reid for the Toronto Real Estate Board (TREB) between November 17 and November 22, 2011.

“TREB supports the recommended 2012 Budget because it continues the process of bringing fiscal sustainability back to City Hall; however, while we support the direction of this Budget, we are pointing out that it does not begin the process of fulfilling Mayor Ford’s commitment to repeal the Toronto Land Transfer Tax in 2012. This is a commitment that is strongly supported by Torontonians,” said Richard Silver, TREB President.

The poll found that,

• 65 per cent of Torontonians continue to support Mayor Ford’s commitment to repeal the Toronto Land Transfer Tax. Even when asked to consider the City’s deficit and recent efforts to address it, public support for the repeal of this tax is at 57 per cent;
• Torontonians want to see respect for taxpayers during negotiations with City Unions: 67 per cent believe that City negotiators should seek concessions from the unions; 57 per cent would like to see an end to current job security provisions; and 54 per cent would support a lock-out if union representatives do not agree to concessions;
• in contrast to the public’s strong opposition to the Land Transfer Tax, 52% of Torontonians support increasing residential property taxes as part of the solution to addressing the City’s deficit and paying for services; and,
• 54%, a majority, believe that City spending on programs and services is cost-effective and efficient. This is an increase of 9 per cent , from 45 per cent to 54 per cent, since April, 2011 when Ipsos Reid last measured this sentiment for TREB, indicating an apparent shift in attitude.

“Notwithstanding the difficult decisions that City Council has faced with regard to the budget, Torontonians understand that the Land Transfer Tax is part of the problem because it unfairly forces home buyers and business owners to pay more than their fair share, costing the average Toronto home buyer more than $6,000 every time they move; it is an unpredictable revenue stream that goes up and down with the real estate market; and it makes the City less competitive than other GTA municipalities,” said Silver. “The Land Transfer Tax is simply a band aid that has delayed the true solutions to the City’s financial challenges.”

REALTORS® believe that sustainable solutions to the City’s financial challenges are a combination of cost reductions and fair revenue sources, like property taxes and user fees.

“TREB Members work with the public across the GTA, so they understand that the City’s Budget affects not only Torontonians but the entire region. Simply put, the City’s budget decisions affect where people live and work. You only need to travel along the DVP during morning rush hour to see the proof: as many people are leaving the City to get to their jobs as there are coming in,” said Richard Silver, TREB President.

“Toronto businesses face the highest commercial and industrial property tax rates. Making business property taxes more competitive will allow the property tax base to grow, providing long-term, reliable, revenue, which, ultimately, will benefit residents by relieving pressure on existing taxpayers and improving quality-of-life in Toronto and the entire GTA by keeping people and jobs close together, thereby reducing traffic congestion,” said Silver.

REALTORS® are encouraged with the direction of the 2012 Budget and, along with the public, are calling for fiscal reform to continue at City Hall.

“REALTORS®, and the public, believe that City Council has made progress in bringing respect for taxpayers back to City Hall. We strongly believe that moving ahead with repealing the Land Transfer Tax, continuing to reduce costs, and using fair revenue sources is the right way to continue to move forward,” said Silver.

These poll results were gathered from 401 residents of the City of Toronto, yielding a margin of error of +/- 4.9 percentage points 19 times out of 20.

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 32,000 TREB Members serve consumers in the Greater Toronto Area. The Toronto Real Estate Board is Canada’s largest real estate board.

November 25, 2011

As we watch our American neighbours celebrate American Thanksgiving, and we as Canadians officially enter into the holiday season, I’m reminded of just how thankful I am to live in such a wonderful city. I also can’t help but take this time to reflect on how we as a REALTOR® community can help others achieve the dream of homeownership.

And so I’m truly honoured to be part of a community of REALTORS® who have volunteered to help make that dream a reality for one local family.

Starting on November 25th then again on December 1st, 2nd, 8th and 9th, our community of Greater Toronto REALTORS® are taking part in the construction of a Habitat for Humanity home that our professional association the Toronto Real Estate Board (TREB) has sponsored.

Located at 4572 Kingston Road near Morningside Avenue, the home marks the fourth title sponsorship of seven Habitat for Humanity builds to which TREB has contributed in recent years.

We as REALTORS® have the distinct honour of witnessing on a daily basis one of the greatest life changing moments when we witness our clients achieve that homeownership dream.

And so as REALTORS®, we recognize that a home is more than just bricks and mortar: It serves as a retreat from our busy world, a place where friends and family gather, and where memories are made. So I know I speak for all REALTORS® who will be playing a key role in improving the quality of life for another local family, not just through sponsorship but by volunteering to take part in their home’s construction.

In recent years TREB also sponsored Habitat for Humanity homes in Scarborough’s McLevin Woods and Etobicoke’s Lakeshore Village.  The organization, which constructs simple, decent and affordable housing in partnership with low-income families has built more than 225 homes throughout the city, and has set a goal to build 50 new homes each year by 2015.

By offering a helping hand to families in need, Habitat for Humanity is helping to build a better Toronto, which is a priority goal that we as Greater Toronto REALTORS® share.

Each year, Toronto Real Estate Board REALTOR® Members contribute to the overall quality of life in the Greater Toronto Area by supporting shelter-related charities through the REALTORS® Care Foundation. Last year it offered grants totaling more than $178,000 to 35 different organizations throughout the GTA.

So with the holidays upon us, this is a time of year when many people’s thoughts turn to helping those less fortunate. I encourage everyone to contribute their time or their financial resources to the GTA’s many shelter-related related organizations because doing so benefits us all.

THURSDAY, DECEMBER 1, 2011 – 7 pm
Metropolitan United Church, 56 Queen St. E.
Free, with suggested donation of $20.

Hosted by CBC’s Tom Allen with Rev. Dr. John Joseph Mastandrea.

THIS YEAR’S PERFORMERS: Dr. Draw, Prita Chhabra, Singing Out!, David Warrack, Douglas Rice with the Velvet Curtain, Christian Jeffries , The Metropolitan United Church Choir, The Jarvis Collegiate Senior Choir, and more!

Followed by a candlelight ceremony with hot apple cider and cookies in the courtyard.

Click here for photo highlights of the 2010 concert

Please connect with me should you need any clarity.

“Home sales in the GTA have stood up well despite a less certain economic outlook,” said Toronto Real Estate Board President Richard Silver. “Home sales will be bolstered by low mortgage rates moving forward. The Bank of Canada is expected to be on the sidelines until the second half of 2012 or even into 2013. However, home ownership affordability in the City of Toronto could be further improved with the removal of the City’s land transfer tax. This tax currently represents a substantial upfront cost for home buyers.”

With market conditions remaining tight in the GTA, the average selling price continued to grow strongly in August – up by more than 10 per cent year-over-year to $451,663.

“We remain on pace for the second best year on record for sales. Approximately 90,000 transactions are expected by the end of December,” said TREB’s Senior Manager of Market Analysis Jason Mercer. “Major home ownership costs, including the average monthly mortgage payment, remain affordable despite the strong price growth experienced so far this year.”

Strong economy sees numbers boosted

August 26, 2011 — As one of the world’s most diverse cities, Toronto welcomes nearly 100,000 newcomers to Canada each year. These people have chosen Toronto to begin building a better life. A report released recently by CIBC World Markets confirmed that the reasons for embracing Toronto are well founded.

The report assessed the performance of Canada’s largest cities in the first quarter of this year, and while Toronto didn’t come out on top in any individual category, the cumulative effect gave Toronto top position in the report’s ranking of Canadian cities.

The Toronto Real Estate Board’s figures on July’s resale housing market are testament to the strength of our local economy. 

A total of 7,992 homes changed hands in July, representing a 23 per cent increase over the 6,564 sales from a year ago.  While sales were robust in July, it is important to note that the sharp increase is relative to July 2010, when higher lending rates, new mortgage regulations and misconceptions about the Harmonized Sales Tax dampened activity.

Including July transactions, there have been 55,863 transactions so far this year, within 1.3 per cent of last year’s performance.  Total sales for the year are expected to move above the 2010 total by the end of August.

Sales activity in the 905 Region outpaced that of the City of Toronto last month, with year-over-year increases of nearly 25 per cent and 21 per cent respectively.

The amount of time it took to sell a home, on average, declined compared to last year.  Homes that sold this past July were on the market for an average of 26 days – down by 21 per cent from an average of 33 days a year ago.  This decline in selling time is largely due to a dip in listings in comparison to last year.  Less supply has led to more competition amongst home buyers, which has decreased the decision time for offers.

Tighter market conditions continued to drive strong annual growth in the average selling price.  The average price of a resale home in the GTA increased by almost 10 per cent year-over-year to $459,122.  Gains were slightly stronger in the city’s surrounding area, with the 905 average price climbing 11 per cent to $448,612.  The average price in Toronto increased seven per cent to $475,717.

Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis suggested that market may become more balanced in the second half of the year: “We did see some year-over-year improvement in new listings in July, but sales continued to grow at a faster clip.  As we move toward the end of 2011 and into 2012, expect more households to list their home for sale, prompted by the strong price growth reported during the first half of 2011.”

Homeownership remains affordable in the Greater Toronto Area.  Low mortgage rates and steady income growth have kept homebuyers confident in their ability to purchase and pay for a home over the long term.  This is why the number of transactions and the average selling price has continued to grow.  However, some of our REALTOR® Members serve consumers in the City of Toronto putting their clients at a disadvantage. Consumers could be doing even better with the repeal of the backbreaking and unfair upfront costs brought about by Toronto’s additional land transfer tax.  Mayor Rob Ford has promised to do away with the tax.  All Members of the Toronto Real Estate Board, especially residents in the 416 area code, look forward to the fulfillment of this promise.

With the recent volatility of the financial markets, the strength of home ownership has become a great topic for discussion. Variations can occur but your home is where you enjoy your family and friends. Living in the Greater Toronto Area is a very wise long term investment with lots of options in terms of housing type and neighborhoods.

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

Reprinted from the Toronto Sun.