Monthly Report on Greater Toronto Real Estate

GTA REALTORS® REPORT MONTHLY RESALE MARKET FIGURES

TORONTO, February 4, 2015 — Toronto Real Estate Board President Paul Etherington announced a strong start to 2015, with robust year-over-year sales and average price growth in January. Greater Toronto Area REALTORS® reported 4,355 home sales through the TorontoMLS system during the first month of the year. This result represented a 6.1 per cent increase over January 2014. During the same period, new listings were up by 9.5 per cent. 

“The January results represented good news on multiple fronts. First, strong sales growth suggests home buyers continue to see housing as a quality long-term investment, despite the recent period of economic uncertainty. Second, the fact that new listings grew at a faster pace than sales suggests that it has become easier for some people to find a home that meets their needs,” said Mr. Etherington.

The average selling price for January 2015 home sales was up by 4.9 per cent year-over-year to $552,575. The MLS® Home Price Index (HPI) Composite benchmark was up by 7.5 percent compared to January 2014. 

“Home price growth is forecast to continue in 2015. Lower borrowing costs will largely mitigate price growth this year, which means affordability will remain in check. The strongest rates of price growth will be experienced for low-rise home types, including singles, semis and town houses. However, robust end-user demand for condo apartments will result in above-inflation price growth in the high-rise segment as well,” said Jason Mercer, TREB’s Director of Market Analysis.

Summary of TorontoMLS Sales and Average Price January 1 – 31
2015 2014
Sales Average Price New Listings Sales Average Price New Listings

City of Toronto (“416”)

1,561 $581,477 3,912 1,540 $551,841 3,586

Rest of GTA (“905”)

2,794 $536,428 5,684 2,563 $512,018 5,176

GTA

4,355 $552,575 9,596 4,103 $526,965 8,762
TorontoMLS Sales & Average Price  By Home Type January 1 – 31
Sales Average Price
416 905 Total 416 905 Total

Detached

451 1,545 1,996 948,713 648,233 716,127

Yr./Yr. % Change

-2.0% 10.0% 7.1% 7.0% 4.2% 4.2%

Semi-Detached

128 290 418 667,452 455,653 520,510

Yr./Yr. % Change

-3.8% 2.8% 0.7% 7.2% 9.4% 7.8%

Townhouse

155 518 673 502,267 421,443 440,058

Yr./Yr. % Change

-9.9% 4.2% 0.6% 14.5% 6.2% 8.0%

Condo Apartment

809 392 1,201 382,458 310,045 358,823

Yr./Yr. % Change

6.2% 23.3% 11.2% 4.5% 3.6% 3.6%

The top 10 contemporary homes in Toronto

The top 10 contemporary homes in Toronto

toronto integral houseThe top contemporary homes in Toronto serve as a reminder that fans of modern architecture are spoiled for choice in this city. Take a stroll around neighbourhoods like Rosedale and Cedarvale (two areas with residents rich enough to hire a designer and build their own homes) will reveal a dramatic modular home that overlooks a steep ravine, a Mad Men-era mansion, a $30 million palace with a 150 seat concert venue, even a home that looks suspiciously like an iPhone.

Here are the picks for the top contemporary homes in Toronto.

194 Roxborough Drive – Integral House
No list of modern Toronto homes would be complete without a mention of the Integral House, concert violinist and mathematics whizz James Stewart’s massive Rosedale mansion. It has five floors, a 150-person indoor music hall, numerous gadgets, and reportedly cost in the region of $30 million. The best features, however, are on the outside. The curving glass and wood exterior blends nicely with its bucolic surroundings.

toronto iphone house18 Thelma Avenue (iPhone house)
Ever thought how great it would to live inside a house that looked sort of like a smartphone? It will cost you $3.2 million, but there is an option in Toronto. 18 Thelma Ave., just north of Spadina and St. Clair, is the iPhone house. Its glossy back exterior and window arrangement make the home look like a giant Apple product poking out of the ground.

95 Ardwold95 Ardwold Gate – Richard G.W. Mauran House
One of Toronto classic single dwelling examples of modernist architecture, The Richard G.W. Mauran House at 95 Ardwold Gate was built in 1968 for the founder of restaurant chain Harvey’s on the site of an Eaton family mansion. It still manages to look futuristic at almost 50.

toronto cedarvale ravine house207 Ava Road – Cedarvale Ravine House
A descendent of the Richard G. W. Mauran House, 207 Ava Road has a similar appearance to its 1960s counterpart, but with more glass. Built in 2012 out of impressive cantilevering blocks, this house features polished concrete floors and ceiling-height windows that look out over the Cedarvale Ravine. Architecture critic John Bentley Mays calls it “intelligent, deft and refined.”

48 Heathdale Road48 Heathdale Road
Another modern Cedarvale abode, 48 Heathdale Rd. appears relatively rustic compared to its stark neighbours. Exterior wood paneling, an earth-toned frame, and an uneven roof line lend the two-storey home, which was completed in 2005, a hint of nature. Like the Ravine House, below, 48 Heathdale appeared in the movie Chloe.

toronto 375 shaw street375 Shaw Street
The exterior of 375 Shaw St., located a short walk north of Trinity-Bellwoods Park, gives away little of the strangeness within. When it was last on the market in April this year, prospective buyers were no doubt confused by the substantial swimming pool that dominates the kitchen and living area. Step straight from the stove to the giant tub, if that’s what you’re in to.

toronto laneway shaftesbury40R Shaftesbury Avenue – The Laneway House
That any house has been built on a laneway in Toronto is something of a planning miracle, let alone one as aesthetically refined as the Superkül Inc. house. The former blacksmiths workshop on Shaftesbury Ave. has an exterior of artfully rusted metal, a little rooftop patio, and numerous skylights. Amazingly, the footprint is just 83.6 square metres. Perfect for fans of micro living.

toronto ravine house24 Heathdale Road – Ravine House
The impressively sectional Ravine House is one of two homes on this list to have appeared in a Hollywood movie, Atom Egoyan’s Chloe. The home, built overlooking the Cedarvale Ravine to designs by Drew Mandel Architects, looks like a space ship that could take off into the night sky at a moment’s notice. Inside, the property is lined with mahogany panels and glass walls. There’s even a rear terrace and “lookout pavilion.”

toronto pachter residence22 Grange Ave – Pachter Residence
Artist and real estate speculator Charles Pachter’s house on Grange Ave. stands out among its Victorian neighbours like a spacesuited Neil Armstrong would in a line of chimney sweeps. Built in 2005 in place of a funeral home, the combined residence, gallery, and studio space is a neighbourhood landmark. Pachter described in theStar as “clean, elegant and quiet … it is an oasis. It’s a joyful place — a serious Pee-wee’s Playhouse.”

toronto crescent road108 Crescent Road
It takes guts and determination to drop an modern home like 108 Crescent Rd. into a notoriously conservative Victorian neighbourhood like Rosedale. The two-storey brick and wood box wasn’t easy to build; neighbourhood and city groups had to be convinced the home would respect its surroundings and, as a result, numerous nods were made to the Rosedale aesthetic, including dark wood cladding and several brick exteriors
.

Ontario’s housing affordability levels stay the course

Ontario’s housing affordability levels stay the course: RBC Economics

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TORONTO, By and large, developments in Ontario’s housing market in the first quarter of 2013 were a continuation of recent trends, according to the latest Housing Trends and Affordability Report, issued today by RBC Economics Research.

“During the first quarter of this year, Ontario’s housing market continued its transition from slightly hot to more temperate conditions – resale activity remained subdued, demand and supply stayed somewhat more balanced and price increases eased off a little,” said Craig Wright, senior vice-president and chief economist, RBC.

RBC’s housing affordability measures, which capture the province’s proportion of pre-tax household income needed to service the costs of owning a home at market values, extended their modest deteriorating trend for the single family homes categories and stationary trend for condominium apartments (a rise in the measure indicates deterioration in affordability). RBC’s measures for both bungalows and two-storey homes rose by 0.4 percentage points in the first quarter to 43.5 per cent and 49.5 per cent, respectively. The measure for condominiums was unchanged at 29.2 per cent.

Affordability still eroding slightly in the Toronto area
“Developments in the Toronto-area housing market so far in 2013 should ease concerns that cooler activity might morph into a full-blown retreat,” said Wright.

In the first quarter of 2013, home resales increased modestly, while fewer homes were newly listed for sale, which together worked to tighten market conditions a little bit and provide some support to home prices, which had come under some downward pressure in the latter half of 2012.

On the flip side of Toronto’s housing market ‘forward step’, there was a slight erosion in affordability. Deteriorating trends in the past couple of years have made the ownership of a single family home at current prices a stretch for local homebuyers. RBC affordability measures for bungalows and two-storey homes stand well above their historical averages; condo ownership, however, imposes less of a financial burden.

RBC measures increased by 0.8 percentage points to 53.8 per cent for bungalows, by 0.3 percentage points to 62.7 per cent for two-storey homes, and by 0.2 percentage points to 33.5 per cent for condominium apartments.

Ottawa-area housing market softens in the first quarter of 2013
Home resales fell for the fifth consecutive quarter in the Ottawa area. Among other worries, buyers still seem uncertain about public sector job prospects. At the same time, new listings rose for the fourth time in the past five quarters.

“Diverging trends between demand and supply drove down the sales-to-new listings ratio in the area to its lowest level since 1998,” said Wright.

At 0.46, the ratio implies the market is balanced, but that buyers hold increasing power in the price-setting process. In fact, RBC says that home prices in Ottawa have been close to a standstill recently.

At the margin, housing affordability may be straining some Ottawa homebuyers, as it remains slightly worse than it has been on average historically. RBC’s affordability measures were little changed in the first quarter, inching higher by 0.1 percentage points to 39.1 per cent for bungalows and 0.2 percentage points to 41.0 per cent for two-storey homes, and easing by 0.1 percentage points to 27.2 per cent for condominium apartments.

RBC’s housing affordability measure for the benchmark detached bungalow in Canada’s largest cities is as follows:Vancouver 82.3 per cent (up 0.1 percentage points from the previous quarter); Toronto 53.8 per cent (up 0.8 percentage points); Montreal 40.1 per cent (up 0.6 percentage points); Ottawa 39.1 per cent (up 0.1 percentage points); Calgary 38.7 per cent (up 0.8 percentage points); Edmonton 30.4 per cent (down 0.2 percentage points).

The RBC Housing Affordability Measure, which has been compiled since 1985, is based on the costs of owning a detached bungalow (a reasonable property benchmark for the housing market in Canada) at market value. Alternative housing types are also presented, including a standard two-storey home and a standard condominium apartment. The higher the reading, the more difficult it is to afford a home at market values. For example, an affordability reading of 50 per cent means that homeownership costs, including mortgage payments, utilities and property taxes, would take up 50 per cent of a typical household’s monthly pre-tax income.

Highlights from across Canada:

  • British Columbia: affordability improves, but still has a long way to go
    Homeownership in the province became slightly more affordable in the first quarter, though the market has a long way to go before homebuyers can experience more normal levels by historical standards. RBC measures fell by 0.4 percentage points for bungalows and by 1.3 percentage points for two-storey homes. The measure for condominiums remained unchanged.
  • Alberta: slight erosion in affordability does little to deter homebuyers
    High household incomes in the province kept homebuyers unfazed by the slight erosion in affordability in the first quarter. Alberta’s housing market remains a bright spot in Canada despite the fact that affordability measures rose slightly by 0.2 percentage points across all housing types tracked by RBC.
  • Saskatchewan: biggest affordability improvement in Canada
    Following a noticeable deterioration in the fourth quarter of 2012, Saskatchewan’s affordability levels registered the largest improvement across Canada in kicking-off 2013. RBC measures fell by 1.7 percentage points for two-storey homes, 1.0 percentage point for bungalows and 0.3 percentage points for condominiums.
  • Manitoba: second consecutive quarter of affordability deterioration
    Manitoba’s affordability levels deteriorated for the second straight quarter in the first quarter of 2013, though levels are still not considered dangerous for provincial homebuyers. The RBC measures rose modestly across all housing categories – up 0.8 percentage points for bungalows, 0.4 percentage points for condominiums and 0.2 percentage points for two-storey homes.
  • Quebec: affordability variations a mixed bag
    Affordability levels in Quebec remain modestly worse than they have been historically for single family homes, which could be contributing to homebuyers’ hesitation in pulling the trigger on purchases over the past year. In the first quarter of 2013, RBC measures were a mixed bag, with bungalows and two-storey homes rising 0.4 percentage points and 0.1 percentage points, respectively, and condominiums declining 0.6 percentage points.
  • Atlantic Canada: cooling housing market keeps affordability attractive
    Increasingly looser housing market conditions have reduced sellers’ pricing power, keeping affordability fairly attractive in Atlantic Canada. First quarter measures rose very modestly, between 0.4 and 0.6 percentage points, for all categories tracked by RBC.

2885 Bayview Avenue, Suite 1222

Please take a look at my newest listing and visit the virtual tour link below! I do this for all of my listings. If you are interested in this condo please let me know right away and I can show it to you at your earliest convenience!

001_ID85962

Arc Condos Stunning 1 Bedrm, East Facing, High-Floor, Open Concept Suite With H*U*G*E 249 Sq.Ft. Balcony! Nothing To Do But Move In! * L*O*W Maintenance Fee * 9′ Ceilings * Floor-To-Ceiling Windows With lots Of Light * Stunning Unobstructed Views! * Direct Access To Subway, Ttc, Steps to Bayview Village (Loblaws, shops, restaurants), Hwy. 401 & More * Luxury Bldg. With Incredible Amenities * 1 Prkg & Locker Included.


002_ID85971007_ID85989
Includes Stainless Steel Fridge, Stove, Dishwasher, Microwave, Washer/Dryer, All Light Fixtures, All Window Blinds *** This Building Features Gorgeous Common Areas With Grand Lobby, 24 Hr. Concierge, Luxury Amenities Incl. Pool, Gym, Steam Room Etc.*** Amazing condo With Huge Balcony & Unbostructed Views – Very Few Available Like This!

004_ID85977006_ID85985

http://2885bayviewave-1222.info/#/virtual_tour/amenities

Call right now to book a showing! – Kyle @ 647-287-8744

Kyle Bouchard, Broker
Century 21 Percy Fulton Ltd., Brokerage
2050 Sheppard Ave. E, Toronto, ON M2J5B3

Direct: 647-287-8744
Office: 416-298-8200
Fax: 289-475-5524
Website: http://www.kylebouchard.ca

CMHC study: Families benefit significantly from living in their own homes

CMHC study: Families benefit significantly from living in their own homes

A study conducted by the Canada Mortgage and Housing Corporation (CMHC) highlighted the importance of affordable housing for Canadian families. It concluded that moving into one’s own home leads to major improvements in housing conditions, child well-being and school performance, health, and personal and family life.

Family in front of future house

The study is based on the results of a 2012 Canada-wide survey of families who purchased a home through the Habitat for Humanity Canada since 2000. It showed that children benefit significantly from living in their own home. Overall well-being and school performance improved with the majority reporting increased confidence and behaviour, higher grades and better attendance.

Living in one’s own home has a positive impact on health with 78% of the Habitat home buyers reporting that their own health and the health of their families is ‘better now’ than in their previous, mostly, rental housing.

While many participants said their housing costs increased since becoming home owners, the majority also said they were better off financially and had more financial control.

Finally, home owners are engaged community members. The study found that new Habitat families’ participation in volunteer activities increased from 52% to nearly 61% since purchasing a home.

Ontario REALTORS® understand the importance of affordable housing. Since 1967 OREA members have been active supporters of a variety of shelter-based charities including Habitat for Humanity through the REALTOR® Care Foundation. Since its inception, the Foundation has granted more than $2-million on behalf of the Ontario REALTORS® to shelter-based organizations across the province.

REALTORS® are also vocal supporters of governmental policies that ensure Ontario homes stay affordable. While the Toronto Real Estate Board is championing the fight against the Toronto land transfer tax, OREA is actively voicing its concerns to the province in efforts to prevent a potential spread of this tax to the entire province.

For more information on this or any other Real Estate/Mortgage matter, please feel free to contact Kyle Bouchard anytime at 647-287-8744 or info@kylebouchard.ca

Examining Toronto Real Estate Market Trends

KANETIX Examines Toronto Real Estate Market Trends

Toronto boasts a population of more than 2.7 million people and its real estate market is often under a lot of scrutiny from well-known economists and real estate experts says KANETIX. The Toronto housing market is constantly being watched by investors and residents so they can strategically plan their purchase and also take advantage of any declines in housing prices.

Despite rumors of downward pressure, there are several factors that are keeping the housing market relatively stable, balanced and healthy. While many areas in Canada have posted declining housing prices for the last six months, several areas, including Toronto, posted gains in April. With a closer look at the housing market trends in Toronto-trends that include an improving economy and a high-demand for property-residents and investors will see that the market is likely to remain relatively strong in the coming months and throughout 2014. With mortgage rates in Toronto at new lowsit would appear there in no end in sight.

Growing Population and an Improving Economy

Toronto is currently the country’s leader in urban population growth, increasing by 9.2 per cent since 2006 (compared with the average national increase of 5.9 per cent). Stable growth in the economy is expected to continue through mid-2013, and is projected to gain momentum toward the end of 2013 and into 2014 according to the Canada Mortgage and Housing Corporation (CMHC). A growing population, coupled with a growing labour force, may help to produce continued gains in the housing sector for Toronto, Canada.

Housing Starts

While Toronto has experienced declines in new housing starts, property in the area remains in high demand. The CMHC reports that one reason for the stall in new housing is due to the large number of apartment complexes currently under construction. More construction, and subsequently more housing construction, is expected to be carried out pending the completion of these units. The Halton area of Toronto has already reported an increase in housing starts for the month of April.

Housing Prices

The average MLS (Multiple Listing Service) price for existing home sales in 2013 is $382,200, though this is expected to increase to $390,000 in 2014. This modest growth is anticipated to keep pace with the low inflation rate, or may fall slightly below the rate of inflation. The rather flat housing prices coupled with low interest rates will continue to make homeownership attainable for those who strive to purchase property in the area.

Increasing prices in certain areas highlights a strengthening market. Single-detached homes in particular show promise, with prices increasing 7 per cent from the same quarter in the previous year.

While some prices remain high in spite of low home starts and sales, the region has also reported “robust employment gains” according to CMHC, which may keep high prices appealing. Despite the fact that the resale market has not shown substantial growth, CHMC asserts that the greater Toronto area remains balanced.

Home Sales & the Demand for Housing

Home sales in Ontario peaked in the first part of 2012 with 196,383 units sold, although this rate was projected to decline to 191,300 units for 2013. With improving economic conditions toward the end of 2013 and early 2014, however, the projection of units sold for 2014 may be as high as 201100. Aggressive Ontario mortgage rates could likely help foster this growth.

While economists and real estate experts projected a cooling market earlier in the year, recent reports indicate the market in Toronto has taken a step forward for spring of 2013. Home sales in May were up 24 per cent from March. While the pace at which housing prices in the area are growing has slowed, housing prices in Toronto were still up 2 per cent in April, marking the average price of a home at $526,335. April reports also indicate an increase in demand for luxury single-detached homes.

What Could Change

It is important to note that different economists have different outlooks on the housing market in Toronto. While analyzing current data and statistics can provide important information about market trends and can help to project trends in the coming year or two, any major changes to interest rates or to the local or national economy could alter these trends.

Currently, housing starts in The Greater Toronto Area are moderately stable and reasonable for the area’s rate of population growth, economy, and employment rate. Additionally, interest rates are expected to remain low for the coming months. Those who are waiting for housing prices to reduce, or who are waiting for the real estate market to decline rapidly may be disappointed if current market trends hold true.

The strength of the Toronto market perhaps truly lies in its location-where the demand for rental units continues to grow rapidly. While part of the increase in leasing is due to new mortgage restrictions, those desperately seeking in-demand property in this popular area are now facing a vacancy rate that is “barely above one per cent,” states to Urbanation’s Director of Market Research, Pauline Lierman. As a result, the Toronto housing market may soon see increases in both existing home and multi-family unit home sales.

For more information on this or any other Real Estate/Mortgage matter, please feel free to contact Kyle Bouchard anytime at 647-287-8744 or info@kylebouchard.ca

 

Torontonians continue to disapprove of city’s land transfer tax

Torontonians continue to disapprove of city’s land transfer tax

CalculationsA new Ipsos Reid poll released on June 14 demonstrates strong public support for the elimination of the Toronto land transfer tax (LTT).

The poll conducted on behalf of the Toronto Real Estate Board (TREB) between May 10, 2013 and May 22, 2013, and found that:

– Two-thirds (65%) of Torontonians support plans to eliminate the Toronto Land Transfer Tax;

– Support for eliminating the land transfer tax with a gradual phase-out approach, as suggested by Mayor Ford, is strong (65%);

– 90% of recent home buyers feel that they received little or no added value in municipal services for the Land Transfer Tax that they paid to the City;

– 4% of home buyers in Toronto and the Greater Toronto Area say they are more likely to purchase a home outside of Toronto specifically because of the Toronto Land Transfer Tax;

– 65% of home buyers who currently live in Toronto say they are more likely to leave Toronto, when they purchase their next home, specifically because of the Toronto Land Transfer Tax.

Previous research proved that the tax slows down the market, hurts local economy and makes municipalities less attractive places to live.

As a result of Toronto’s LTT, average home buyers pay close to $12,000 in land transfer taxes, about half to the provincial government and half to the city. A recent study by the C.D. Howe Institute demonstrated that LTT dampened home sales by 16 per cent in Toronto resulting in 3,500 fewer transactions. Moreover, the city lost on $140 million in spin off revenue resulting from the new homeowners renovating and spending on various services.

While the city of Toronto is the only municipality in Ontario with the power to levy the municipal LTT, OREA is keeping a close eye on any signs of spreading the tax to other parts of the province. In order to draw attention to the importance of the issue, OREA made it a focus of the 2013 budget consultation process, which included a formal written submission, presentation in front of the Standing Committee on Finance and Economic Affairs  as well as meetings with dozens of provincial MPPs and Ministers, including the Minister of Finance.

OREA is continuing its active work on the file in order to prevent Ontario municipalities from receiving the ability to levy the second LTT.

For more information on this or any other Real Estate/Mortgage matter, please feel free to contact Kyle Bouchard anytime at 647-287-8744 or info@kylebouchard.ca