If now is the time that you are considering checking out Toronto homes for sale, there is a huge likelihood that you are going to be interested in what the current market is looking like.  Obviously a potential buyer will want to purchase at a time when conditions are most favorable to him or her.  Well there seems to be good news with regards to Toronto homes that should make a buyer feel more at ease regarding choosing now as the time to buy.

According to the Toronto Real Estate Board (TREB), housing numbers for May of this year are only a slight bit lower than this same time last year (roughly 1%).  But this news isn’t bad at all since it appears that there is a pretty good reason for this decline in Toronto home sales.  Data that TREB has collected for the months of February through March of 2010 show that there were actually a record number of home sales in these months.  This means that the Toronto homes for sale were moving a little bit earlier this year.  Buyers may have been frightened of interest rate hikes to come later in the year and therefore decided to move earlier in order to lock in lower rates.  This means that if you are a buyer looking to purchase this year, you are definitely not by yourself.

It is also important to point out that new listings are up by nearly 40% this year.  A recent market analysis conducted by TREB is also showing a larger gap between new listings and Toronto homes actually being sold.  I’d say this is great news for those starting their new home search now.  When there are more available options of Toronto homes to choose from the buyer normally has more control over the process than if there was a shorter supply of homes available in the marketplace.

This news should not discourage those looking to sell their Toronto home though.  The flip side of this coin for the seller is that the average number of days a home is sitting on the market before being sold has dropped dramatically.  In May of 2009 a home sat on the market for an average of 35 days.  This year that number is down to 22.  This is a decline of 37%, which is a very positive sign for anyone with Toronto homes for sale right now.  It also means that buyers who do find that perfect home would be wise to move quickly and make an offer or the home just may be sold to someone else.

Half of the homes being sold are single family detached homes with condominium styled apartments coming in a distant second.  In addition, the average price of a Toronto home being sold has gone up about 13% from the previous year to now.  This new is promising and is showing that the Toronto housing market is in a good place with no signs of bursting in the bubble that many have feared.

* Average price steady from a year earlier at C$324,928 (Adds details)

http://www.reuters.com/article/idUSN1515564220100915

TORONTO, Sept 15 (Reuters) – Sales of existing homes in Canada in August rose 4.1 percent from July, the first monthly increase since March, the Canadian Real Estate Association said on Wednesday.

The industry group said 32,807 homes changed hands in August, with most of the monthly gains concentrated in the two biggest markets, Ontario and British Columbia, a reversal from the previous month.

Compared with a year earlier, sales were down 22.5 percent on a seasonally adjusted basis.

Despite the modest monthly rise in sales, the general trend is still likely to be of further moderation in Canada’s housing market, which was a major growth engine as the economy emerged from recession last year.

Sales volume and prices heated up in the first half of this year as buyers sought to avoid stricter mortgage rules and new blended sales tax regimes in Ontario and British Columbia that came into effect at midyear.

Transactions were also packed into the first half of the year to avoid rising interest rates. The Bank of Canada started raising rates in June and has increased its key rate three times, bringing it to 1 percent.

“Rising interest rates and a projected slowdown in job growth mean that the Canadian housing market is expected to continue to cool,” said Georges Pahud, the president of Canadian Real Estate Association.

CREA said the national average price in August was C$324,928 ($315,464), on par with the same month last year at C$324,843. The number of new listings rose 1.9 percent in August from July. ($1=$1.03 Canadian) (Reporting by Ka Yan Ng; Editing by James Dalgleish and Peter Galloway)

Residents of Ontario and B.C. are unsure about how the harmonized sales tax (HST) affects real estate transactions, a new study finds, and the confusion is being blamed for a slide in home sales.

Home sales in Toronto fell 34 per cent in July, according to the Toronto Real Estate Board.

TREB reported that there were 6,564 sales last month, down from 9,967 in the same month in 2009. Home sales were at the lowest level since 2002.

“The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring,” said board president Bill Johnston, in a release.

Vancouver too has seen a sharp decline in home sales. According to the Real Estate Board of Greater Vancouver, home sales dropped 45.2 per cent in July, with 2,255 homes sold in July 2010 versus 4,114 homes sold in July 2009.

Confusion around how HST applies to homes sales could be to blame. A new survey of realtors released Thursday by Royal LePage finds that 43.9 per cent feel the tax is playing a part in cooling the housing market.

“According to our realtors who work in B.C. and Ontario communities every day, misconceptions about the HST are having an effect on the market in both provinces,” said Phil Soper, president and chief executive of Royal LePage Real Estate Services, in Toronto.

According to the brokers, 46.7 per cent of comments from buyers and sellers indicate confusion about how the new tax affects home sales. And 57.1 per cent of realtors say they get “many” questions about how the tax works.

The study was conducted via email at the end of July with Royal LePage’s 765 realtors in Ontario and B.C.

The harmonized sales tax took effect on July 1 in Ontario and B.C. It applies to the sale price of a newly built home — not a resale home — and fees for services and commissions incurred during the real estate transaction.

Updated: Mon Jul. 19 2010 5:09:07 PM

ctvtoronto.ca

While Toronto’s real estate sales volume is significantly down over the same period in 2009, housing prices continue to rise, says the Toronto Real Estate Board.

In figures released Monday, the board said there were 2,790 sales through the Multiple Listing Service for the first two weeks of July.

That is a 37 per cent decrease from the 4,437 sales made in the first two weeks of July 2009.

“New listings decreased by eight per cent annually to 5,184,” the board said.

Bill Johnston, the board’s president, said in a news release that sales volume had spiked and were “unseasonably high” in the first four months of 2010.

He said transactions will be down year-over-year as sales levels balance out.

“With year-to-date sales up by more than 18 per cent compared to last year, we continue to look forward to one of the best years on record under the current TREB trading area,” Johnston said.

In 2009, the real estate market started rebounding after the recession began in late 2008. Prices returned to previous levels early in 2009 and kept on growing.

The average price recorded for the first two weeks of this month was $427,931. That figure is eight per cent higher than the average of $394,750 recorded for the same period of July 2009.

“The average home selling price in the GTA will continue to grow on an annual basis in the second half,” Jason Mercer, the board’s senior manager of market analysis, said in a news release.

“Even with the pace of transactions slowing, there will be enough sales relative to listings to support sustainable rates of price growth.”

The board didn’t mention whether the HST is having a noticeable impact on real estate activity.

For example, real estate commissions are now subject to the HST. Previously, they were exempt from Ontario’s old eight per cent Retail Sales Tax.

People buying new homes over $400,000 in value will have to pay the HST. Previously, such homes were exempt from provincial sales tax.

Those buying a new home valued under $400,000 get a rebate of up to $24,000 to keep the amount of HST payable the same as under the old sales tax regime. That rebate will also apply to homes valued over $400,000, but purchasers of those homes will pay more tax than in pre-HST times.

Mercer told CTV Toronto it’s too soon to tell how much of an effect the HST is having on buying decisions.

He did say that many people made purchases this spring to beat out looming interest rate hikes and tightened federal mortgage eligibility rules.

On Tuesday, the Bank of Canada is considered likely to raise its key lending rate to banks by another 25 basis points, or one-quarter of a percentage point.

Some analysts expect that there might be one or two more small interest-rate hikes this years, Mercer said.

People should remember that home affordability rests on purchase price, interest rates and the buyer’s household income.

“The income that goes towards the average mortgage payment is still very low in historic terms,” he said.

Thinking of purchasing your very own piece of real estate in the fabulously exciting city of Toronto?  Well if you are there are various options available to you.  It will depend on exactly what is important to you when it comes to narrowing down your choices.  But there are some things that everyone must consider in terms of choosing Toronto homes for sale based on their location.

Take a look at 5 things you should definitely consider when looking for your new Toronto home:

1.     Restaurants & Entertainment – if you love to dine out then you are going to want to choose an area where there are lots of options to choose from.  Because there are several cultural enclaves within the city, you can certainly find a place to live that is close to the type of food you enjoy most.  In addition, Toronto is known for its museums and theatres.  Having access to both would only add to the charm of owning a piece of real estate in close proximity to them.

2.    School Systems – if you have children (or plan to have them soon) then you will want to check out the schools before settling on a particular neighborhood.  You want to make sure that your children will be getting a top notch education and that your tax dollars are being put to good use.

3.    Safety – every major city has its rough spots, Toronto is no exception.  It makes no sense to find the perfect home in an area where the crime rate is out of control.  You want to choose an area where you can feel safe and have no fears when you lay your head down at night.   Of course there are no guarantees but you must make sure to select Toronto homes that provide the most security your money can afford.

4.    Parks & Recreation – if you love to do outdoor activities then you should be looking at Toronto homes for sale that are close to lakes and parks.  Having the activities that you love to do within walking distance (or at least a very short drive) will only add to the pleasure of living in a particular neighborhood.

5.    Shopping – Toronto is known for being a city that is great for walking.  Having cool shops and boutiques nearby would be a wonderful selling point.  It sure beats going to a traditional shopping mall all the time.  Imagine taking a stroll out on the weekend going in and out of the quaint shopping locations in your neighborhood purchasing some one of a kind item, sounds exciting doesn’t it?
If you stop and think about these things when you are looking at the breathtaking Toronto homes that are available, you are sure to make a better selection.  Remember, it’s not just about the house; it’s also about the setting which surrounds the house that helps make it an enjoyable place to live and call home.

Purchasing a Toronto home is by far the biggest purchase most Canadians will ever make.  If you are thinking about purchasing a home in Canada’s most populated city there are a few steps you should take before you’ll be able to successfully move into the home of your dreams.

1. Secure Financing – this is a step that many put in the wrong order.  Often people go out looking at all the wonderful Toronto homes for sale without first knowing exactly what they can afford.  By contacting a lender first, you will be able get a pre-approval that lets you know exactly in what price range you should be looking for a Toronto home.  Doing anything else would be putting the proverbial cart before the horse.
2. Find a Realtor – sure you can hop in the car on a Saturday and drive around looking for “FOR SALE” signs, but is that really the most efficient way to search for homes.  One of the main things that a real estate agent is a good for is providing access to the Multiple Listing Service (MLS).  This list will allow you to find out exactly what homes are available for sale and at what price (all of which may not have a sign posted in the window or on the front lawn).  The agent will be able to listen to what you’d like in a new home and put schedule viewings based on your desires which will allow for a more targeted search.
3. Choose a Prime Location – where you choose to buy a Toronto home may just be more important than the actual home you purchase.  You’ve heard it time and time again “Location, Location, Location” and it rings just as true when it comes to Toronto homes.  Is crime in the area low?  Are the schools high quality?  Is there a park or a lake nearby?  What about restaurants and entertainment?  The answers to all of these questions will greatly affect the price of the home.  The goal should be to get the most for your money in terms of value.  It is also important to think about the future and whether or not this Toronto home is one that allows you to build equity.  In addition, consider the homes potential for resale.
4. Type of Home – once you know the area(s) you are thinking about buying in you must now consider the type of Toronto home you want to purchase.  Do you have a growing family that would benefit from the space offered in a single family home that would have a yard where children could play?  Or are you a single person who travels often and likes the maintenance free life that condo living can provide?  Knowing these answers up front can also create a more simplified search process.

Once you have done these first 4 steps you will find that you are well on your way to locating the perfect Toronto home for your future!

The real estate market in Toronto is primed for those looking to purchase a home.  It doesn’t matter if you are a first time homebuyer or are looking to upgrade from your current home, there are plenty of Toronto homes for sale.  A single family home, condominium apartment or townhome, whatever you are looking for in the way of a Toronto home, you are sure to find it in the current market.

Who wouldn’t want own a piece of real estate in Canada’s #1 city?  Toronto is more than just the brightest jewel in Canada; it is also a city with a world class reputation.  It is spoken of amongst famed cities like New York, Paris, and Rome.  Toronto is not only an attractive vacation spot for world travelers, it is also a fabulous place to live.  Fine restaurants, beautiful landscapes, exciting entertainment, and a rich culture can all be found in Toronto.  And right now is a great time to purchase your new (or next) Toronto home.

Toronto homes are in abundant supply too according to a report just released by the Toronto Real Estate Board.  There appears to be a wider gap between listed homes and sold homes.  This is wonderful news for those looking to make purchases in the coming months.  When inventory is high choices are plentiful; in addition, buyers can negotiate much more fervently in this climate versus if inventory were lower.

But you will need to be prepared to make an offer once you find what you are looking for among the Toronto homes for sale.  With homes being on the market for around 22 days, this is down 13 days from this same period last year.  This means that the inventory you will find is fresh because it is being turned over quickly.  If you are worried about getting financing for the Toronto homes you are seeking, there a plenty of government programs out there that could be of help.  You can potentially put down as little as 5% for a down payment.

There are also special programs for the first time home buyer as well.  And once you own that home you may even qualify for a special grant if you plan on making your Toronto home more energy efficient.  So don’t be discouraged if your financial situation is not optimal, there are many programs available to help set you on that path toward home ownership.

Let’s face it; the global real estate market has taken a pounding in recent years.  Although Toronto has faced its share of problems, because it is such a vibrant and attractive city it always seems to have the resilience which gives it the ability to rebound from any down periods.  For this reason it makes perfect sense to purchase one of the beautiful Toronto homes that are for sale.  You and your family will have the opportunity to enjoy a beautiful residence in an amazing city that will help you build a better financial future.

If you are in the market for Toronto Homes,  odds are you will want to know what the current market is like.  The news appears to be promising for those who are looking to make a purchase in the near future.  As a matter of fact, it seems that many of your fellow homebuyers have already beat you to the punch when it comes to choosing their own Toronto homes.

The Toronto Real Estate Board (TREB) is reporting housing numbers for May 2010 that are just a little bit lower than this time last year  (about 1%) for new homes sales.  But reports are this is because new homebuyers got a head start on making their purchases this year.  Data shows that February, March, and April posted record numbers.   It appears buyers are attempting to make their move before interest rates get moving in the upward direction.  All of this means that if you have decided to purchase a home this year, you are not alone.  This is also the highest May on record when compared to years prior which also speaks volumes about the direction in which the housing market is moving.

One important point to highlight is that new listings are up by close to 40%.  In addition, TREBs most recent market analysis is showing that the gap between listings and sales has widened a bit.  This is excellent news for those who are beginning their search for those perfect Toronto Homes for Sale.  When there are a few more options of Toronto homes for sale the buyer feels (and rightly so) as if they have more control over their home buying destiny.

But those looking to sell their current home need not be discouraged by these figures.  There’s still good news for you as well.  Looking again at last year’s numbers versus this year’s show the average number of days the homes are sitting on the market before being sold has dropped significantly.  In May 2009 the average number of days that a home stayed on the market was 35.  One year later in May 2010 that number has dropped all the way down to 22 (for single family dwellings).  This 37% percent reduction is a positive sign of what is going on in the real estate market within Toronto.

It appears that close to half of the homes being sold are single family detached homes with condominium apartments coming in 2nd at roughly 20%.  And considering that the average home price has risen 13% from last year May to the current year, it seems that things are looking good.  All of this news is good for those who are buying as well as selling a Toronto home.  Whatever the fears you may have had about a Toronto housing bubble can be put to the side; it seems that the housing market is quite resilient in this world class city anyone would be proud to call home!

TORONTO, May 25 (Reuters) – Canadian home ownership costs are rising and affordability is eroding, while overvalued house prices are due for a correction in the coming year or two, a pair of reports by banks said on Tuesday.

CIBC World Markets’ new Home Ownership Affordability Index found home ownership was within reach for most Canadians but increasingly difficult for some. It also said about 17 percent of all dwellings in the country were above fair value.

“While the booming housing market is starting to come back to earth, the fact that prices are overvalued today does not necessarily mean that they will crash tomorrow,” said Benjamin Tal, senior economist at Canadian Imperial Bank of Commerce (CM.TO).

He predicted that higher interest rates will lead to a modest decline in prices, probably between 5 and 10 percent, in the coming year or two.

The CIBC index considers demographics and mortgage type, in additional to the price of homes, interest rates and income.

“The vast majority of home owners in Canada, regardless of their age have not experienced any worsening in affordability despite the rapid increase in prices,” said Tal, noting that the average size of a mortgage, which has risen 42 percent in six years to C$170,000 ($157,400), has not coincided with a significant worsening in affordability.

But CIBC found that families with household incomes of less than C$50,000 were spending close to 60 percent of gross income on mortgage payments, property taxes and electricity costs.

“This is three times the average ratio seen among households at the same age groups but with income of over C$50,000,” said Tal.

Separately, the RBC Housing Affordability measure for the first quarter of 2010 showed that home ownership costs had risen across all housing segments, according to a report by Royal Bank of Canada (RY.TO).

The RBC report found that measures rose at the national level by 0.9 percentage points for a detached bungalow, 0.4 percentage points for a standard townhouse, and 0.5 percentage points for a standard condominium. The standard two-storey home increased by 0.6 percentage points.

The RBC index measures the proportion of pretax household income needed to service the cost of owning a home. The higher the measure, the costlier it is to afford a home.

INTEREST RATES, SUPPLY ON THE RISE

Rising interest rates will likely be a main factor affecting affordability. Market observers expect the Bank of Canada will soon raise rates, as soon as next week on June 1, as the economy has shown considerable strength.

“We believe that the spectacular rally in housing prices over the past year will soon end, as rock-bottom mortgage rates increase,” said Robert Hogue, senior economist at RBC.

“Sustained economic growth over the next year and the ensuing rise in job creation and household income should keep home affordability from spiraling out of control,” he added.

Posted mortgage rates started to perk up about a month ago, but have since been pared back after government bond yields fell during the European debt crisis.

CIBC trimmed its five-year rate on closed mortgages to 5.99 percent on Friday, down 0.11 percent.

While affordability is expected to deteriorate throughout 2010 and 2011, Hogue said cost increases should be “limited as more balanced supply and demand conditions will take much of the steam out of the housing market.”

CIBC’s Tal said “stabilizing forces are already at play”, pointing to rising new listings and a slower pace of climbing home prices.

Home resales slowed in April while new listings climbed, suggesting the country’s real estate market could soon start to cool after a year of surging prices.

Source: http://www.reuters.com/article/idUSN2515712520100525

Tougher mortgage rules come into effect Monday, though experts say that the incoming changes have done little to cool a thriving national housing market.

Finance Minister Jim Flaherty announced in February that Ottawa was bringing in new rules to ensure that new homebuyers would be able to afford their mortgages as interest rates rise in the coming months.

Flaherty said the government was acting to prevent a future housing bubble, though he said there was “no evidence” to suggest one was developing. At the time, he characterized the Canadian housing market as being “healthy and stable” with about two-thirds of Canadians owning their own homes.

Paula Roberts, a Toronto-area mortgage banker, said the key is to have homebuyers in a position where they can comfortably withstand an increase in interest rates.

“Nobody wants to get anybody into a house — they love their house, they love the mortgage, they qualify and all of a sudden rates go up and they can’t afford it,” Roberts told CTV’s Canada AM during an interview in Toronto on Monday morning.

Under the new rules, homeowners are now required to meet the standards of a five-year, fixed-rate loan even if they choose a variable-rate mortgage or a shorter-term arrangement.

Additionally, Ottawa put a limit on the amount of refinancing that homeowners can undertake, dropping the maximum to 90 per cent of the value of their home, down from 95 per cent under the previous rules.

For investors, the government will now require a 20 per cent down payment for non-owner-occupied properties, if they wish to qualify for government-backed insurance.

Hot market amid new rules

The rules come into effect today, but experts say that they haven’t slowed down buyers since Flaherty announced the new rules and mortgage rates jumped nearly three-quarters of a point in the interim.

The Canadian Real Estate Association said almost 100,000 houses went up for sale last month, beating the previous monthly record by nearly 20 per cent.

Marcus Caporicci, a London, Ont., real estate agent, told The Canadian Press that many homebuyers have entered the market with the intent of making a purchase before the rules get tougher.

Furthermore, Caporicci said the effect of making it harder for people to obtain mortgages, is that “creative financing will become increasingly popular.”

That could include loans from family, or the use of credit to make the 5 per cent down payment that is necessary to obtain a mortgage, Caporicci said.

But other real estate professionals say the changes were already in step with what private mortgage companies and banks are doing.

Martin Reid, the president of mortgage banker Home Trust, said most people will be unaffected by the new rules.

“There will be some people around the fringe that are impacted by it, but I don’t think it’s a huge negative impact to the real estate market,” Reid told The Canadian Press from Toronto.

Peter Kinch, a mortgage and housing expert, agreed that the new mortgage rules effect only a minority of buyers in each case. As a result, he expects the incoming rules will have minimal effect on Canadian housing prices.

“In the big picture, it will impact those who are in the fringe and those who potentially could have gotten into trouble, but, at the end of the day, it’s not going to have a huge impact of cooling off housing prices,” he told CTV News Channel on Monday morning.

“I don’t think we’re going to see a major impact on housing prices at all.”

Source: CTV News
Published: Monday, April 19, 2010
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