April 2020 Market Report

GTA REALTORS® RELEASE APRIL 2020 STATS

TORONTO, ONTARIO, May 5, 2020 – Toronto Regional Real Estate Board President Michael Collins released the following key housing market statistics for April 2020:

Home Sales and Listings

• Greater Toronto Area REALTORS® reported 2,975 residential transactions through TRREB’s MLS® System. This result was down by 67 per cent compared to April 2019. Weekday sales remained within a relatively steady range during the month, averaging 130 per day.

• New listings amounted to 6,174 in April 2020 – down on a year-over-year basis by a similar rate compared to sales (-64.1 per cent).

Home Prices

• The average selling price for April 2020 transactions was $821,392 – up by 0.1 per cent compared to the average price of $820,373 reported for April 2019. The semi-detached and townhouse market segments experienced annual average price growth above the rate of inflation. The condominium apartment and detached segments experienced year-over-year price declines on average.

• The trend for the MLS® Home Price Index Composite Benchmark, which had been on an upward trajectory since the beginning of 2019 flattened in April. On a year-over-year basis, the Benchmark was up by 10 per cent.

• The MLS® HPI indices represent prices for typical homes with consistent attributes from one period to the next. The fact that the MLS® HPI was up year-over-year by a greater rate than the average selling price suggests that the share of higher end deals completed in April 2020 versus April 2019 was down.

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Seasonality refers to a monthly (or quarterly) pattern that occurs in roughly the same manner from one year to the next, e.g., sales are highest in the spring and lowest in the winter each year.

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The necessary social distancing and economic impacts associated with COVID-19 clearly impacted home sales and listings throughout April 2020. However, REALTORS® have been able to facilitate some transactions on behalf of buyers and sellers through the use of innovative techniques including virtual open houses. TRREB has also provided a live stream virtual open house option on Member listings featured on our public websites, and I would expect the use of these innovative techniques to increase as some level of social distancing remains in place for the foreseeable future. – Jason Mercer, Director, Market Analysis, TREB

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

If you found this article helpful please hit "Like" and "Share".

*Image of Toronto - courtesy of Marco Manna.

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IMPACT OF COVID-19 ON REAL ESTATE

TORONTO, ONTARIO, April 22, 2020 – Toronto Regional Real Estate Board President Michael Collins is reporting results for the first 17 days of April 2020, in order to provide some guidance on the impact of COVID-19 on the Greater Toronto Area housing market:

Greater Toronto Area REALTORS® reported 1,654 home sales through TRREB’s MLS® System during the first 17 days of April – down by 69 per cent compared to the same period in 2019.

Year-over-year sales declines in percentage terms, were greatest for the detached and condominium apartment market segments. In the detached segment, the higher end of the market was particularly impacted in the City of Toronto. The condominium apartment segment has traditionally attracted a high share of first-time buyers, who in times of uncertainty can put their decision to purchase on hold.

The number of new listings was down on a year-over-year basis by a similar annual rate, declining by 63.7 per cent to 3,843.

The fact that new listings trended in a similar fashion to sales during the first half of April means that market conditions remained tight enough to provide support for the average selling price in line with 2019 levels.

The average selling price for sales reported during the first 17 days of April 2020 was $819,665 – down by 1.5 per cent compared to the same period in 2019.

Uncertainty about market conditions due to COVID-19 certainly played a role in moderating the pace of year-over-year price growth during the first half of April. The changing composition of home sales also played a role. In the City of Toronto, for example, the number of homes sold for more than two-million dollars declined more than overall sales. This also had an impact on the average selling prices.

It should also be noted that selling prices have also followed listing prices, with average listing prices down by a similar amount. Average selling prices have not been noticeably lower than listing prices compared to last year. This is further evidence that the mix of homes listed has changed compared to last year.

“The state of emergency measures currently in place, including the necessary enforcement of social distancing, has impacted the real estate market in many ways. Home buyers and sellers have concerns about the economy and indeed their own employment situations. On top of this, many buyers and sellers are avoiding any type of in-person interaction. In the condo market in particular, individual condo corporations have curtailed entry for non-residents,” said Mr. Collins.

“All of the COVID-19 related issues and measures have translated into a temporary drop in the number of transactions – a drop that will persist until we experience a meaningful and sustained decline in the number of cases. However, once recovery begins, it will likely accelerate in earnest as buyers seek to satisfy pent- up demand that will build up over the course of the spring and at least part of the summer,” continued Mr. Collins.

“While the necessary social distancing efforts have certainly resulted in a substantial pause to housing transactions, it is possible that REALTORS® and their clients will be able to mitigate the impact somewhat through the use of technology. TRREB and its partner board and association Members can now take advantage of virtual open houses accessed through listing searches on TRREB.ca and REALTOR.ca. TRREB’s professional development staff are also holding virtual webinars on other ways REALTORS can leverage technology to help their clients in these challenging times,” said John DiMichele, TRREB’s CEO.

Looking forward, the decline in home sales will be likely strongest in Q2 2020, as strong social distancing measures remain in place for most of the spring. However, if public health forecasts assuming strong social distancing measures play out as expected, we will likely start to see improvement in market activity in the summer. Recovery will accelerate through the fall, as social distancing measures are substantially relaxed, a large number of people return to work from furlough and home buyers take advantage of very low borrowing costs that will remain in place to spur economic recovery.

The calendar year average price for 2020 will likely remain near the 2019 level, and will be buoyed by the 15 per cent year-over-year growth experienced in Q1 2020 and resumed growth in Q4. Year-over-year declines in home prices could be reported during some months in the second and third quarters, but these declines will have less of an effect on the overall price for 2020 because the annual share of sales will also be much lower than normal.

“As we recover from this temporary downturn, potentially later this year, home buyers will move off the sidelines in increasing numbers as they satisfy pent-up demand for ownership housing. Increasingly, these buyers will be faced with the persistent lack of listings inventory that was a serious problem before the onset of COVID-19. As the different levels of government look toward recovery, it will be important for them to resume and build upon initiatives to bring a greater diversity of housing supply on line,” said Jason Mercer, TRREB’s Chief Market Analyst.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

If you found this article helpful please hit "Like" and "Share".

*Image of Toronto - courtesy of Marco Manna.

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AVERAGE SELLING PRICE REMAINS ABOVE LAST YEAR'S LEVELS IN THE SECOND HALF OF MARCH

MARCH MARKET STATISTICS - PRE-COVID-19 AND POST-COVID-19 PERIODS

Toronto Regional Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 8,012 home sales through TRREB’s MLS® System in March 2020 – up by 12.3 per cent compared to 7,132 sales reported in March 2019.

However, despite a strong increase in sales for March 2020 as a whole, there was a clear break in market activity between the pre-COVID-19 and post-COVID-19 periods. For the purposes of this release, the start of the post-COVID-19 period was the week beginning Sunday, March 15.

• The overall March sales result was clearly driven by the first two weeks of the month. There were 4,643 sales reported in the pre-COVID-19 period, accounting for 58 per cent of total transactions and representing a 49 per cent increase compared to the first 14 days of March 2019.

• There were 3,369 sales reported during the post-COVID-period – down by 15.9 per cent compared to the same period in March 2019.

For March as a whole, new listings were up by three per cent year-over-year to 14,424. However, similar to sales, new listings dropped on a year-over-year basis during the second half of the month (beginning March 15) by 18.4 per cent.

Despite sales and listings trending lower in the second half of March, demand for ownership housing remained strong enough relative to listings to see the average selling price remain above last year's levels, including during the last few days of the month. As we move through April, we will have a clearer view on how social distancing measures and broader economic conditions will influence sales and ultimately the pace of price growth.

The MLS® Home Price Index Composite Benchmark price was up by 11.1 per cent year-over-year in March 2020. The average selling price for March 2020 as a whole was $902,680 – up 14.5 per cent compared to March 2019.

The average selling price for sales reported between March 15 and March 31, was $862,563 – down from the first half of March 2020, but still up by 10.5 per cent compared to the same period last year.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

If you found this article helpful please hit "Like" and "Share".

*Image of Toronto - courtesy of Marco Manna.

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COVID-19 & THE REAL ESTATE INDUSTRY | NEW BUSINESS MEASURES

COVID-19: HOW TO CONTINUE TO OFFER ESSENTIAL REAL ESTATE SERVICES

March 25, 2020

Dear Colleague,

Across Canada, our governments are taking action to help contain the coronavirus. By mid-March, every province and territory had declared a State of Emergency to deal with the health crisis. Each region is responding with measures that reflect the uniqueness of their situation. It is crucial that we respect directives from local public health authorities and adapt to serve the Canadians who rely on us.

This week, our two most populous provinces, Ontario and Quebec, moved to close all but essential businesses. In Ontario, real estate brokerage was deemed an essential service. In Quebec, where the COVID-19 disease has spread much more widely, the new regulations are more severe. Our Quebec team is restricted to only electronic communication with clients until April 13th.

In all provinces, with the exception of Quebec, I am directing you to conduct business as an essential service.  As an essential service, it is our duty to serve the public, operating with the same public health agency protocols to maximize safety for our clients and ourselves that other essential services are being asked to comply with.

Please understand, no Royal LePage professional should feel pressured to work if they do not wish to, for health or any other reason. If you find yourself in that situation, please let your broker or manager know and they will find someone to help the consumer in need.

During this period, you are obligated to limit your interaction with consumer property and consumers themselves. This directive allows for limited access to homes to facilitate the listing process, including capturing the necessary imaging and details to professionally market the home in a way that minimizes the need for potential buyers to physically visit the property. You should ensure that the home is spotless and that you employ best-practice disinfection techniques.

If you are helping a purchaser, your home-search efforts should focus on electronic showings. We realize that it is unreasonable to expect that a family would make the largest financial commitment of their lives without physically visiting the home they intend to buy. To that end, and to help your buyers confirm that you have found them a suitable home, please begin immediately following the home-showing guidance contained in this communication.

We know how dedicated Royal LePage professionals are to serving their clients' homeownership needs. Today your concern and commitment extends to their health and welfare. Together, we can help contain COVID-19 and work to keep the communities we serve safe while providing the essential shelter-related service we have been called upon to provide.

Finally, we are not asking you to sit in moral judgement when approached to offer your services. In these difficult times, the shoppers and tire-kickers have disappeared. There are thousands of Canadians who find themselves in urgent need of shelter, and thousands more who must find a way to sell their property.  If there ever was a time when the famous Royal LePage motto of 'Helping you is what we do' will resonate with our public, this is that time.  I know that you will rise to the occasion.

Sincerely,

Phil Soper
President & CEO

Royal Lepage Real Estate Services Ltd., Brokerage

If you are thinking of selling or buying due to your individual circumstances, please reach out and I will do my best to advise you of the best practices and assist you with your real estate transaction during these trying times.

YOUR SAFETY IS OUR TOP PRIORITY!

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IMPORTANT INFORMATION LINKS:

Toronto Public Health  

https://www.toronto.ca/home/covid-19/    

Ontario Public Heath 

https://www.publichealthontario.ca/en/diseases-and-conditions/infectious-diseases/respiratory-diseases/novel-coronavirus

Health Canada website  

https://www.canada.ca/en/public-health/services/diseases/coronavirus-disease-covid-19.html

Ontario list of Essential Business 

https://www.ontario.ca/page/list-essential-workplaces

Canadian Mortgage and Housing Corporation (CMHC)

https://www.cmhc-schl.gc.ca/en/finance-and-investing/mortgage-loan-insurance/the-resource/covid19-understanding-mortgage-payment-deferral

CIBC

https://www.cibc.com/en/personal-banking/advice-centre/covid-19/financial-assistance.html

Royal Bank

https://www.rbc.com/covid-19/index.html

Bank of Montreal

https://www.bmo.com/covid19

National Bank of Canada

http://www.nbc.ca/personal/notice.html

TD Bank

1-888-720-0075

Scotiabank

1-800-4-SCOTIA

HSBC

1-888-310-4722

Business Bank of Canada- support for entrepreneurs

https://www.bdc.ca/en/pages/special-support.aspx?special-initiative=covid19

Government of Canada- COVID-19 Updates

https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection.html

Province of Ontario- COVID-19 Updates

https://www.ontario.ca/page/2019-novel-coronavirus?_ga=2.50637036.414774865.1579999479-1384618845.1579999479

Public Health Ontario

https://www.publichealthontario.ca/en/diseases-and-conditions/infectious-diseases/respiratory-diseases/novel-coronavirus

COVID-19 Self Assessment

https://covid-19.ontario.ca/self-assessment/#q0

City of Hamilton

https://www.hamilton.ca/coronavirus

Halton Region

https://www.halton.ca/For-Residents/Immunizations-Preventable-Disease/Diseases-Infections/New-Coronavirus

Niagara Region

https://www.niagararegion.ca/health/covid-19/default.aspx

City of Brantford

https://www.brantford.ca/en/living-here/covid-19-response.aspx

Ontario Real Estate Association

https://www.orea.com/COVID-19

EI Benefits Canada

https://www.canada.ca/en/employment-social-development/corporate/notices/coronavirus.html?fbclid=IwAR2s7YUoy11T5XLwRpgMBDdg3vQfPxdhP8sQnbMrM8tnU6nztIgLcmrYipc

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MARCH 23, 2020

RECO FINALLY PUTS A BAN ON OPEN HOUSES

Health authorities have provided important guidance to help contain the spread of the COVID-19 virus, directing that people minimize opportunities for transmission of the virus through direct physical interaction.

Conventional open houses, which involve in-person viewing of the property and direct physical interaction with salespeople and other prospective buyers, are the types of activity health authorities are directing be ceased.

We strongly recommend that brokerages and salespeople follow the direction of health officials by declining to facilitate or participate in open houses, and by limiting showings to where they are absolutely necessary.

We support the many brokerages and salespeople who have adopted strategies that promote social distancing, by focusing on virtual, digital and paperless solutions that reduce direct physical interaction during real estate transactions, significantly reducing the risk of transmission. We greatly appreciate the efforts of real estate associations and boards who have, or will be, temporarily suppressing open houses on their MLS® Systems and on public facing websites. 

These are extraordinary times, and everyone should do their part by following the expert direction of health authorities.

Please continue to closely monitor announcements from health authorities and to visit RECO's COVID-19 Notices page for additional information published by RECO.

Do I have to host an open house for my client?

No. As a registrant and business operator, you decide which services you are prepared to offer. You should make those decisions based on the most current guidance and direction of health authorities, which at present is to reduce or eliminate direct physical interaction that could promote transmission of the virus. Information from health authorities is evolving and changing based on current circumstances and facts. Please stay up to date. 

Do I have to participate in showings?

No. As a registrant and business operator, you decide which services you are prepared to offer. You should make those decisions based on the most current guidance and direction of health authorities, which at present is to reduce or eliminate direct physical interaction that could promote transmission of the virus.

In-person meetings and showings should be limited to where they are absolutely necessary. Help your clients understand the importance of following current direction from health authorities and the risks that come with hosting or attending showings. If your client decides to allow showings of their property or to attend showings of other properties, you can decline to participate. As always, you should discuss with your clients the services you are prepared to offer and ways to minimize the risk of transmission of the virus.

If you do decide to participate in a showing, actively promote social distancing and follow recommendations of health authorities about handwashing and sanitizing to reduce the risk for yourself, buyers and sellers.

What are the alternatives to open houses and in-person showings?

Digital technologies offer possible buyers and sellers many ways to show and view a property, without setting foot in the home. Explore virtual marketing tools and strategies, such as video and virtual tours, in addition to conventional photos of the property. Though a buyer may want to see the home in-person before committing, they might be able to reduce the number of in-person showings required by assessing properties through virtual options first. 

Why isn't RECO banning open houses and showings? 

When it comes to issues of public health, RECO follows the direction of health authorities, namely the Ontario Ministry of Health and Long Term Care, who continue to provide guidance to the public and businesses around minimizing the risk of transmission of the COVID-19 virus and other health related issues. 

RECO strongly recommends that brokerages and salespeople decline to host or participate in open houses. Instead, RECO recommends alternative ways of delivering real estate services that minimize direct personal contact to help reduce the transmission of the virus. 

A number of brokerages and salespeople have already adopted this approach, and associations and boards are urging their members to do the same. Some local boards have taken further steps to suspend the ability to have open houses appear on their MLS® systems. 

If you need to know what these changes mean to you, or if you are thinking of selling or buying due to your individual circumstances, please reach out and I will do my best to advise you of the best practices and assist you with your real estate transaction during these trying times.

If you found this article helpful please hit "Like" and "Share".

*Image of Toronto - courtesy of Marco Manna.

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Very strong year-over-year sales and price growth in February

Serious inventory shortage likely to be the single biggest driver for the Spring Market

TORONTO, MARCH 4, 2020 – In line with the forecast contained in the Toronto Regional Real Estate Board’s recently released Market Year in Review and Outlook Report, TRREB President Michael Collins announced a very strong year-over-year sales and price growth in February 2020.

Greater Toronto Area REALTORS® reported 7,256 residential transactions through TRREB’s MLS® System in February 2020, representing a 45.6 per cent increase compared to a 10-year sales low in February 2019. However, February 2020 sales were still below the 2017 record result. Year-over-year sales growth, for the GTA as a whole, was strongest for ground-oriented home types.

After preliminary seasonal adjustment, February 2020 sales also exhibited positive momentum, up by 14.8 per cent compared to January 2020.

New listings amounted to 10,613 in February 2020, a 7.9 per cent increase compared to February 2019. This moderate annual growth rate was much smaller than that reported for sales, which means market conditions tightened considerably over the past year.

As market conditions tightened over the past year, competition between buyers has clearly increased. This resulted in a further acceleration in year-over-year price growth in February. The MLS® Home Price Index Composite Benchmark was up by 10.2 per cent. The average selling price for all home types combined was up by 16.7 per cent to $910,290. Double-digit average price growth was experienced for most major market segments, including detached houses and condominium apartments.

As shown in this 10 year summary of TRREB activity, February 2020 sales have recovered to 95% of February 2016 levels. However, February 2016 saw activation of 6% more new listings than this February, in a year that ultimately saw 85,731 total transactions. Of even greater significance, February 2016 saw 24% more active listings versus this February overall, yet TRREB's forecast for 2020 is for 97,000 transactions or 13% more than occurred in 2016. All this points to increasing pressure to win insufficient product in an environment where buyers are returning post OSFI stress test adjustments, and a return to record low interest rates on the heels of last week's Bank of Canada announcement.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

If you found this article helpful please hit "Like" and "Share".

*Image of Toronto - courtesy of Marco Manna.

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Persistent supply crunch spurs price jump

TRREB President Michael Collins announced that Greater Toronto Area REALTORS® reported 4,581 home sales through TRREB’s MLS® System in January 2020 – up by 15.4 per cent compared to January 2019. On a preliminary seasonally adjusted basis, sales were up by 4.8 per cent compared to December 2019.

“We started 2020 where 2019 left off, with very strong growth in the number of sales up against a continued dip in the number of new and available listings. Tighter market conditions compared to a year ago resulted in much stronger growth in average selling prices. Steady population growth, low unemployment and low borrowing costs continued to underpin substantial competition between buyers in all major market segments,” said Mr. Collins.

The MLS® HPI Composite Benchmark price was up by 8.7 per cent compared to January 2019 – the highest annual rate of growth for the Benchmark since October 2017. The condominium apartment market segment continued to lead the way in terms of MLS HPI® price growth, but all home types experienced price growth above seven per cent when considering the TRREB market area as a whole. The average selling price in January was up by 12.3 per cent, driven by the detached and condominium apartment segments in the City of Toronto.

“A key difference in the price growth story in January 2020 compared to January 2019 was in the low-rise market segments, particularly with regard to detached houses. A year seems to have made a big difference. It is clear that many buyers who were on the sidelines due to the OSFI stress test are moving back into the market, driving very strong year-over-year sales growth in the detached segment. Strong sales up against a constrained supply continues to result in an accelerating rate of price growth,” said Jason Mercer, TRREB’s Director of Market Analysis and Service Channels.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

If you found this article helpful please hit "Like" and "Share".

*Image of Toronto - courtesy of Marco Manna.

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December and Annual 2019 Stats - Limited inventory heavily favours Sellers

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January 7, 2020  - Toronto Real Estate Board President Michael Collins reported that December 2019 residential sales reported through TREB's MLS® System by Greater Toronto Area REALTORS® were up by 17.4 per cent year-over-year to 4,399. Total sales for calendar year 2019 amounted to 87,825 – up by 12.6 per cent compared to the decade low 78,015 sales reported in 2018. On an annual basis, 2019 sales were in line with the median annual sales result for the past decade.

"We certainly saw a recovery in sales activity in 2019, particularly in the second half of the year. As anticipated, many home buyers who were initially on the sidelines moved back into the market place starting in the spring. Buyer confidence was buoyed by a strong regional economy and declining contract mortgage rates over the course of the year," said Mr. Collins.

While sales were up in 2019, the number of new listings entered into TREB's MLS® System was down by 2.4 per cent year-over-year. For the past decade, annual new listings have been largely in a holding pattern between 150,000 and 160,000, despite the upward trend in home prices over the same period.

"Over the last ten years, TREB has been drawing attention to the housing supply issue in the GTA. Increasingly, policy makers, research groups of varying scope and other interested parties have acknowledged that the lack of a diverse supply of ownership and rental housing continues to hamper housing affordability in the GTA. Taking 2019 as an example, we experienced a strong sales increase up against a decline in supply. Tighter market conditions translated into accelerating price growth. Expect further acceleration in 2020 if there is no relief on the supply front," said Jason Mercer, TREB's Chief Market Analyst.

The MLS® Home Price Index Composite Benchmark was up by 7.3 per cent on a year-over-year basis in December 2019. From June 2019 onward, the annual growth rate in the MLS® HPI Composite Benchmark accelerated. The average selling price in December 2019 was $837,788 – up almost 12 per cent year-over-year. For calendar year 2019, the average selling price was $819,319 – up by four per cent compared to $787,856 in 2018.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

If you found this article helpful please hit "Like" and "Share".

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Historic highs and lows for prices and inventory

GTA REALTORS® Release November 2019 Stats

December 4, 2019  - Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 7,090 sales through TREB's MLS® System in November 2019 – a 14.2 per cent increase compared to November 2018. On a GTA-wide basis, sales were up year-over-year for all major market segments. Annual sales growth in ground oriented home types, including detached houses, led the way. 

New listings entered into TREB's MLS® System in November and the active listings count at the end of the month went in the opposite direction compared to last year, with new listings down 17.9 per cent year-over-year and active listings down 27.2 per cent. 

"An increasing number of home buyers impacted by demand-side policies over the past three years, including the 2017 Ontario Fair Housing Plan and the OSFI mortgage stress test, have moved back into the market for ownership housing. Based on affordability and stricter mortgage qualification standards, many buyers may have likely adjusted their preferences, changing the type and/or location of home they ultimately chose to purchase," said Mr. Collins. 

As market conditions continued to tighten in November 2019, with increased sales up against an increasingly constrained supply of listings, the annual rate of price growth continued to accelerate. The MLS® Home Price Index Composite Benchmark increased by 6.8 per cent year-over-year. The average selling price increased by 7.1 per cent year-over-year to $843,637. Both the MLS® HPI and the average selling price for the TREB market area as a whole experienced the strongest annual rates of price growth for the year in November. 

"Strong population growth in the GTA coupled with declining negotiated mortgage rates resulted in sales accounting for a greater share of listings in November and throughout the second half of 2019. Increased competition between buyers has resulted in an acceleration in price growth. Expect the rate of price growth to increase further if we see no relief on the listings supply front," said Jason Mercer, TREB's Chief Market Analyst.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

If you found this article helpful please hit "Like" and "Share".

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More sales, less inventory, rising price growth trends continue

TORONTO, November 5, 2019 – Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 8,491 residential sales through TREB’s MLS® System in October 2019. This result represented a 14 per cent increase compared to 7,448 sales reported in October 2018. GTA-wide, sales were up on a year-over-year basis for all major home types.

“A strong regional economy obviously fuels population growth. All of these new households need a place to live and many have the goal of purchasing a home. The problem is that the supply of available listings is actually dropping, resulting in tighter market conditions and accelerating price growth,” said Mr. Collins.

The trend of annual growth in sales versus annual decline in new listings continued in October 2019, with new listings down by 9.6 per cent compared to October 2018. The resulting tighter market conditions compared to a year ago resulted in positive annual rates of price growth across all major market segments, from a GTA-wide perspective.

The MLS® Home Price Index Composite Benchmark was up by 5.8 per cent on a year-over-year basis in October 2019 – the strongest annual rate of growth since December 2017. The average selling price for all home types combined was up by 5.5 per cent to $852,142, compared to $807,538 in October 2018.

“As market conditions in the GTA have steadily tightened throughout 2019, we have seen an acceleration in the annual rate of price growth. While the current pace of price growth remains moderate, we will likely see stronger price growth moving forward if sales growth continues to outpace listings growth, leading to more competition between home buyers,” said Jason Mercer, TREB’s Chief Market Analyst.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

If you found this article helpful please hit "Like" and "Share".

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The annual rate of price growth in September reached the highest point so far in 2019

Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS® reported 7,825 sales through TREB’s MLS® System in September 2019. This result represented strong year-over-year sales growth of 22 per cent compared to 6,414 sales reported in September 2018. It is important to note, however, that sales remain well-below the record September 2016 peak of more than 9,800 sales.

On a preliminary seasonally adjusted basis, the September 2019 sales level remained virtually the same as the August 2019 result.

The supply of listings continued to be a concern in September 2019, with new listings down by 1.9 per cent year-over-year to 15,611. We have experienced multiple months this year wherein the annual rate of sales growth outpaced the annual rate of new listings growth, resulting in the overall number of active listings at month-end being well-below last year’s levels. This speaks to tightening market conditions and an accelerating annual rate of price growth.

“Demand for ownership housing increased throughout the spring and summer of 2019 compared to the very slow pace of sales experienced in 2018. That being said, many first-time buyers are still experiencing difficulty finding an affordable home. Federal parties vying for seats in the October election have pledged to alleviate affordability issues hampering first-time buyers with a variety of policy proposals. While these demand-side proposals are important, it is also important that all levels of government remain focused on promoting a sustainable supply of different housing types moving forward,” said Mr. Collins.

The annual rate of price growth in September reached the highest point so far in 2019. The MLS® Home Price Index (HPI) Composite Benchmark was up by 5.2 per cent on a year-over-year basis in September. The average selling price for all home types combined was up by a similar annual rate of 5.8 per cent to $843,115.

On a preliminary seasonally adjusted basis, the September 2019 average selling price was up by 1.2 per cent compared to August 2019.

“It is interesting to note that market conditions for detached homes have tightened over the past year. In many of the regions surrounding the City of Toronto, detached price growth was above the rate of inflation on an annual basis. Consumer polling conducted for TREB over the past few years has pointed out that many intending home buyers are still focused on ground-oriented housing. This points to the need for a greater diversity of housing types to bridge the gap between detached houses and condominium apartments,” said Jason Mercer, TREB’s Chief Market Analyst.

“Statistics Canada’s most recent national population estimate represented the highest twelve month population increase ever recorded. This growth was driven by immigration, of which the GTA was likely a key beneficiary due to its strong regional economy and diversity. As a result, the demand for all types of housing in the GTA – rental and ownership – will remain strong. This fact underpins the need for immediate and sustained action on housing supply,” said TREB CEO John DiMichele.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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2019 August Sales Up, Active Listings Drop

7,711 home sales were reported through the Toronto Real Estate Board MLS in August 2019, representing a 13.4 per cent increase over August’s 2018 results.

Detached home sales in the 905 area showed the most significant increase of all property types with a 24.5 per cent rise year-over-year.

The federal government’s First-Time Home Buyer Incentive (FTHBI) that came into effect on September 2 may add further momentum, as the 905 area is anticipated to be a more likely beneficiary of the program than the 416 area.

Total Active Listings continue to be an important part of the story with a drop of available inventory across the board of 11.16 per cent from last year. The 416 area had under 30 per cent of the 15,870 Active Listings reported by TREB for August, indicating that the 905 is heating up faster than the City.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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Summer GTA sales continue to rebound

8,595 home sales were reported through the Toronto Real Estate Board MLS in July 2019, continuing the trend of improved year over year sales with a 24.3 per cent jump from the same month a year earlier. The average selling price for all home types combined was up by just over 3 per cent over the same period and continues to be driven by higher density home types.

On average, single detached home prices remained lower than last year’s levels in the 416 area but had a modest increase of 2.5 per cent in the 905 region.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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June market conditions tighten, renewed price growth in many segments

8,860 home sales were reported through the Toronto Real Estate Board MLS in June 2019, continuing the trend of improved year over year sales with a 10 per cent jump from the same month a year earlier. The average selling price for all home types combined was up by 3 percent over the same period and continues to be driven by a combination of the low inventory of available properties being outpaced by sales.

Bank of Montreal senior economist Robert Kavcic notes that the statistics for June 2019 are “indicative of a market that has all but balanced out – the sales-to-new-listings ratio is close to the 10-year average again.”

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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May 2019 sales highest in 17 months

9,989 home sales were reported through the Toronto Real Estate Board MLS in May 2019, soaring almost 19 per cent from the same month a year earlier. May sales were the highest on a seasonally adjusted basis since December 2017 - up roughly 10 per cent from April which had a 16.8 per cent jump in year-over-year sales.

The average selling price for all home types combined was up by 3.6 percent over the same period. Lack of supply, however, continues to be an ongoing concern as year-over-year growth in new listings at just under 1% was significantly outpaced by sales.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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Substantial year-over-year increase in April sales

9,042 home sales were reported through the Toronto Real Estate Board MLS in April 2019, a jump of 16.8 per cent compared to April 2018. The average selling price for all home types combined was up by 1.9 per cent over the same period – the strongest annual rate of growth so far in 2019.

Condos continue to trend as a positive driver of year-over-year price growth.

Active listings for the month dropped below levels seen in April 2018 and new listings are not keeping pace with sales - an environment that supports pricing acceleration. This, in combination with the OSFI mortgage stress test, represents a formidable challenge to the first time home buyer, the root of the real estate market. A report issued May 3rd by Canada Mortgage and Housing Corp. citing that there has been “improved alignment overall between house prices and housing market fundamentals” since the stress test was implemented, can be seen as an indicator of the government’s intent to keep the stress test in place for the foreseeable future.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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Competition between buyers, low inventory, keep market tight

March 2019 activity was the softest in 10 years in the GTA but relative to February, resales increased to just under 2% month-over-month (on a preliminary seasonally-adjusted basis). A lack of buying options continue to be a factor holding back activity as the number of new listings fell 4.5% from a year ago.

Robert Hogue, Senior Economist with RBC, says this explanation finds some support in the fact that the benchmark price rose at a faster pace in March (2.6% year-over-year) than February (2.3%)—suggesting that buyers had to bid more aggressively in the face of limited supply.  While market-cooling government policy continues to dampen consumer confidence, the advent of warmer weather after a particularly harsh winter in the GTA will hopefully bring a welcomed boost to spring market activity.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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Tighter market driving price growth

5,025 home sales were reported through the Toronto Real Estate Board MLS in February 2019, down by 2.4 per cent compared to February 2018.

The average selling price for all home types combined was up by 1.6 per cent over the same period.

The semi-detached segment was the best performer, with average prices rising 9.9 per cent on the year and condos continue to trend as a positive driver of year-over-year price growth. A decline of 6.2 per cent for new listings from a year earlier, however, is a concerning statistic that industry analysts suggest is being driven by the OSFI mortgage rules that are keeping buyers on the sidelines.

“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, President of the Toronto Real Estate Board.

“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.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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New Looks for Cabinets and Countertops Emerging in 2019

New products and styles for cabinets and countertops were on display at the Kitchen & Bath Industry Show, the industry’s biggest event, held in Las Vegas from February 19 to 21, 2019.

Dark colors, wood patterns and thin surfaces are a few of the trends inspired by natural and industrial materials.

Wood-look patterns have been trending on flooring and wall applications for some time, but it’s new to see them on countertops. Clairidge, shown in this photo, is Cambria’s first wood-look design. It features tan, walnut brown, cream, black and gray in undulating parallel layers that mimic the look of wood grain. The Woodstone collection is inspired by the tones and movement of various wood grains. 

Engineered Counters Take On Navy 

Multiple manufacturers displayed navy or navy-flecked counters, which marry well with still-trending deep blue cabinets; navy is especially popular as an island-base or lower-cabinetry color. This photo shows Cambria’s new Islington design, which has dramatic navy and other blue tones interspersed with grays and whites. It’s also part of Cambria’s new Black Marble collection.

New Technology Allows for Thinner Engineered Surfaces

Wilsonart introduced ultra-thin countertops in a range of designs: stone and quartz looks as well as wood-look and steel patterns. The European-inspired ultrathin surfaces are one-half-inch thick and can be installed with an undermount sink. The material is a new composite made of resins and paper. 

Cosentino also introduced a thin surface with a 4-millimeter-thick version of its Dekton product, an engineered material made of glass, quartz and porcelain known for outdoor uses due to its durability and resistance to fading.

Thanks to its new thinner profile, the product can be used on cabinetry doors and drawers, backsplashes and wall cladding in kitchens and baths, as well as on furniture, and Cosentino is hoping designers will start incorporating the product more indoors. Dekton Slim is available in nine colors. 

This material is curtesy of houzz.com. Continue on reading here. Main blog photo credit of juniper-design.com.

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Moderate year-over-year price increases, record square footage cost for pre-construction condos

4,009 home sales were reported through the Toronto Real Estate Board MLS in January 2019, up by 0.6 per cent compared to January 2018. The average selling price was up by 1.7 per cent for the month year-over-year.

The first month of this year continues to show the condo market segment leading the way in terms of price growth. This segment is one to watch closely, as data released on February 1, 2019 by Urbanation Inc., which tracks data in the pre-construction condo market in the GTA, indicate that prices of pre-build condo units rose 16 per cent in 2018 to a record of $921 a square foot in the GTA over all, and $1,117 a square foot in central Toronto. Over the past two years, new construction condos prices have climbed by 56 per cent in the GTA, far outpacing price increases for resale condos.

Here you can see the real estate market behaviour for the last 5 years 2014 - 2018.

January 2019 unit sales and inventories look very similar to Jan 2018

Months of Inventory is currently at 3 months, exactly how it was a year ago. We are still experiencing a seller’s market.

As you can see, Months of Inventory for Detached sector is a bit higher than it is for the Semi-Detached or Condominium properties due to affordability factor.

Months of Inventory for regions 416 & 905 in all categories.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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2018 price growth strongest for less expensive home types

A total of 77,426 residential transactions flowed through the TREB MLS in 2018 with an overall average selling price of $787,300 for all home types combined in the TREB market area that includes both the 416 and 905 areas.

These numbers compared to 2017 translate into declines of 16.1 per cent in sales and 4.3 per cent in price.

Despite overall declines, the condo market segment in both the 416 and 905 bucked the trend with average sales up by 7.8 per cent and average prices up by just over 8 per cent year over year. The volume of sales and positive price increases of this home type reflects a move of GTA home buyers in 2018 to more affordable home ownership options.

If you would like to find out what these statistics mean to you, or if you are curious to know how much your property is worth today or how much you can afford to buy, please reach out. 

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