real estate market

Market Watch - March 2019

TORONTO, ONTARIO, April 3, 2019 – Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® reported 7,187 residential sales through TREB’s MLS® System in March 2019. This result was inline with 7,188 sales reported in March 2018. For the first quarter of 2019, sales were down by one per cent compared to Q1 2018.

While March and Q1 sales remained relatively flat compared to last year, new listings have declined more so than sales. March new listings were down by 5.1 per cent year-over-year and Q1 new listings were down by 1.5 per cent.

“The OSFI stress test continues to impact home buyers’ ability to qualify for a mortgage. TREB is still arguing that the stress test provisions and mortgage lending guidelines generally, including allowable amortization periods for insured mortgages, should be reviewed. The supply of listings in the GTA also remains a problem. Bringing a greater diversity of ownership and rental housing online, including ‘missing middle’ home types, should be a priority of all levels of government. TREB is happy to be taking part in the City of Toronto’s consultations for the Housing TO – 2020-2030 Action Plan, and will certainly be raising the supply issue during these discussions,” said Mr. Bhaura.

“While the City of Toronto’s recently announced Housing TO – 2020-2030 Action Plan is exciting and commendable and TREB looks forward to contributing solutions as a Member of the External Advisory Committee, the recently proposed increase to the Municipal Land Transfer Tax on higher priced properties is problematic. As the recent City budget process showed, the MLTT is not a sustainable revenue source from which to fund municipal programs. On top of this, additional MLTT on higher priced homes could have a trickle-down effect on the supply of homes throughout the housing price continuum,” said TREB CEO John Di Michele.

The MLS® Home Price Index Composite Benchmark was up by 2.6 per cent year-over-year in March, while the average price for March sales was up by a lesser annual rate of 0.5 per cent to $788,335. The average selling price for Q1 2019 was up by 1.1 per cent year-over-year.

“Market conditions have remained tight enough to support a moderate pace of price growth. Despite sales being markedly lower than the record levels of 2016 and early 2017, the supply of listings has also receded. This means that in many neighbourhoods throughout the GTA, we continue to see competition between buyers for available listings, which provides a level of support for home prices,” said Jason Mercer, TREB’s Chief Market Analyst.

Market Watch - February 2019

Greater Toronto, March 5, 2019 – Toronto Real Estate Board President Gurcharan (Garry) Bhaura announced that Greater Toronto Area REALTORS® reported 5,025 homes sold through TREB’s MLS® System in February 2019. This sales total was down by 2.4 per cent on a year- over-year basis. Sales were also down compared to January 2019 following preliminary seasonal adjustment.

“The OSFI mandated mortgage stress test has left some buyers on the sidelines who have struggled to qualify for the type of home they want to buy. The stress test should be reviewed and consideration should be given to bringing back 30 year amortizations for federally insured mortgages. There is a federal budget and election on the horizon. It will be interesting to see what policy measures are announced to help with home ownership affordability,” said Mr. Bhaura.

Despite sales being down year-over-year, new listings actually declined by a greater annual rate. This suggests that market conditions became tighter compared to last year. Tighter market conditions continued to support year-over-year average price growth.

Both the MLS® Home Price Index Composite Benchmark and the average selling price were up modestly on a year-over-year basis in February 2019. The MLS® HPI Composite Benchmark was up by 2.4 per cent year-over-year. The average selling price for all home types combined was up by 1.6 per cent over the same period. Price growth was driven by the condominium apartment segment and higher density low-rise home types. On a preliminary seasonally adjusted basis the average selling price was down compared to January 2019.

“Home sales reported through TREB’s MLS® System have a substantial impact on the Canadian economy. A study conducted by Altus for TREB found that, on average, each home sale reported through TREB resulted in $68,000 in spin-off expenditures accruing to the economy. With sales substantially lower than the 2016 record peak over the last two years, we have experienced a hit to the economy in the billions of dollars, in the GTA alone. This hit has also translated into lower government revenues and, if sustained, could impact the employment picture as well,” said Jason Mercer, TREB’s Director of Market Analysis and Service Channels.

3 Things That All Homeowners Should Look For When Selling Their Homes

toronto real estate

Many homeowners will overlook the difficulty of finding the perfect home. Sadly, the same homeowners will also forget how difficult selling a home is. Naive homeowners think that as soon as they put a “for sale” sign in their lawn, they will have dozens of potential buyers knocking down their door. In reality, this isn’t often the case. With this in mind, homeowners should learn a few tricks of the trade before putting their home up for sale. One of these tricks is knowing what to look for when selling a home. Knowing these things will make the house selling process quicker and easier.

#1 - Current Average Price of Nearby Homes

Chances are, there are other homeowners nearby that are also trying to sell their homes. Before putting their home up on the market, it is wise for homeowners to learn what these prices are. To do this, homeowners can do research online or contact the real estate agency that is selling the home. Homeowners that can’t access this information can look at closed sales in the neighborhood. Once a house sale has closed, homeowners can easily find the final asking price. Knowing this information can help a homeowner pick the right price the first time.

#2 - Necessary Repairs That Need to Be Made

Before a homeowner puts their house up for sale, they should look for any repairs that need to be made in or around the house. By doing this, the home will look amazing and all of its features will work to their full potential. If the homeowner is still nervous about hard-to-find damage, they may want to invest in a pre-list inspection. In this process, a professional inspector will analyze every aspect of the home. Afterwards, they inform the owner if there is anything wrong. Getting a pre-listing inspection can also prevent any surprises during the post-listing inspection.

#3 - Strange Smells

Every home has its own unique smell. However, nobody wants to purchase a home that reeks of unpleasant odours. To prevent losing buyers, homeowners should go through their home and clean any particularly smelly areas. This includes drains, wash bins, vents, cooking equipment, carpets and heavily used furniture. By cleaning these aspects of the home, potential buyers will able to admire the house without having to plug their noses.

Although the house selling process may seem like an uphill battle at times, there are ways to make it easier. One of the best things that a homeowner can do is tackle a list of to-dos before putting the house on the market. This includes doing research on other listing prices, making necessary repairs around the house, and getting rid of strange smells in the home. However, these are not all of the issues that need to be dealt with. Homeowners might need to get creative in order to handle their house’s unique issues.

Get in touch to learn more.