Toronto Real Estate Market
Sales and Listings
April: As Greater Toronto REALTORS® reported, 10,350 homes were sold through the Toronto MLS system last month. Compared to April 2011 and 8,778 transactions, the level of sales rose by a very strong 17.9 per cent. With a 22 per cent increase, single-detached homes contributed to the overall rise the most. The same type of home recorded the most noticeable growth in prices too, as the average price went up by 9 per cent. In general, the average price for a property was $517,556 this past month, 8.5 per cent higher than $476,802 seen in April 2011In March 2012, 9,690 homes were sold in the Greater Toronto Area through the Toronto MLS system. Compared to the 8,986 transactions recorded in March 2011, it is a 7.8 per cent increase. In the City of Toronto alone, the year-to-year rise was not so significant, with the number of sold homes going up from 3,610 to 3,682.
Sales of the majority of housing types in Toronto actually declined in March 2012, but due to an increase in the sales of detached dwellings the overall result is an increase.
Detached homes reported 1,287 transactions — up 12 per cent from March 2011. A small decrease was seen in the sales of condo apartments; they went down by 2 per cent to 1,584. The sales of semi-detached dwellings declined by 3 per cent over the year to 388. The number of sold townhouses fell by a more noticeable 7 per cent to 375.
Regarding listings, the numbers were not bad in March. An increase, even though perhaps smaller than we would have liked to see, was recorded in new listings in the Greater Toronto Area. They went up by 7.1 per cent over the year, from 15,224 to 16,308. The number of active listings rose too, but a little less significantly. They went from 16,563 to 16,920, which is a 2.2 per cent growth.
Building Permits
Buildings permits in Canada were worth as much as $6.8 billion in March 2012, up 4.7 per cent from February, with increases recorded in eight provinces. The positive change occurred mainly due to noticeable growth in non-residential permits and in an overall significant rise in Ontario.The value of non-residential permits in our country rose by 13.9 per cent to its highest level since June 2010: $2.9 billion. Increases were recorded in most of the provinces, with the most significant growth seen, as mentioned above, in Ontario.
Non-residential sector
Buildings by Mindgrow
Construction intentions in the institutional component of the non-residential sector went up by an amazing 88.4 per cent to $973 million, which was the highest level since October 2011. In Ontario, the rise was mainly caused by higher construction intentions for government buildings and medical facilities
The value of permits for commercial buildings rose 15.3 per cent to $1.5 billion. High construction intentions for a variety of buildings, from restaurants to laboratories, were the main reason for this increase. Seven provinces recorded growth, with Ontario leading the list.
Residential sector
Overall, 2012 has been a fantastically successful year for home sales in the GTA. In the next couple of months, the current trend is expected to continue. The reason is simple: in the words of TREB’s Senior Manager of Market Analysis, Jason Mercer, “Borrowing costs are expected to remain a positive factor influencing home sales.”, by 1.7 per cent to $2.3 billion. The largest decrease was seen in our province. The value of multi-family home permits went down less significantly, by only 0.7 per cent, to $1.6 billion. While this might not seem very good, it is actually 8.6 per cent higher than the level recorded at the same time last year.Housing Starts
As the Canada Mortgage and Housing Corporation reported, the seasonally adjusted annual rate of housing starts was 215,600 units in March. In comparison to the 205,300 units in February, it is a nice growth. As Mathieu Laberge, Deputy Chief Economist at CMHC’s Market Analysis Centre, said, the rise can be contributed to an increase in multiple housing starts, especially in Ontario and the Prairies. The positive numbers in these areas compensated for the decline recorded in a number of others.Nationwide, the seasonally adjusted annual rate of urban starts went up by 4.2 per cent to 192,100 units in March. The rate of urban starts increased by an unbelievable 30.3 per cent in Ontario, which was mainly caused, as mentioned, by the fantastic growth in the multiple starts. The 50.4 per cent increase is truly remarkable, but it will be tough to keep up with this number in the future. If next month, a fall is recorded, it should not come as a surpris
source- treb
The Canadian housing market is more likely to deflate slowly than crash, BMO says. (Stephen Hird/Reuters)
The Bank of Montreal poured cold water on the idea Canada's housing market could be headed for a crash, suggesting that prices are only "moderately high across the country."
"Expect the housing boom to cool rather than crash," BMO's chief economist Sherry Cooper and senior economist Sal Guatieri said in a report published Monday.
"While the housing boom is unlikely to continue unless mortgage rates drop much further, neither is it likely to bust."
The bank says home values are indeed rising at a faster pace than they used to, but the signs are pointing to a soft landing where prices stabilize — not a hard correction where prices drop quickly by 20 per cent or more.
"In our view, the national housing market is more like a balloon than a bubble," the bank said. "While bubbles always burst, a balloon often deflates slowly in the absence of a pin."
But demographic factors, consistently low interest rates, low construction costs and an influx of foreign buyers make it likely that no such pin will materialize for the foreseeable future, the bank said.
Average prices have grown more than twice as fast as family incomes since 2001, but BMO's report argues there's no reason to panic yet.
Nationally, home prices are 4.9 times higher than the average household income. A decade ago, that ratio was at 3.2.
Some cities are hotter than others. Vancouver's ratio currently sits at 10 times higher than average household income, Toronto's is at 6.7, Montreal's is at 4.5 while Halifax is at 3.8. Those are all on the high side, but if the market cools, that will allow incomes to catch up and move the price-to-income ratio lower, the bank argues.
The latest data from the Canadian Real Estate Association shows the national average price was $347,801 in December, a 0.9 per cent increase over the previous 12 months. That was the lowest level of growth since October 2010 and well below inflation, a possible sign that the market is already cooling.
The bank does note, however, three risks to the outlook. A sudden hike in interest rates, a widespread Canadian recession, or an economic slowdown in Asia reducing the number of foreign buyers would all take the air out of Canada's housing market.
"But barring one of these triggers, however, a dramatic correction is unlikely," the bank said.
"Expect the housing boom to cool rather than crash," BMO's chief economist Sherry Cooper and senior economist Sal Guatieri said in a report published Monday.
"While the housing boom is unlikely to continue unless mortgage rates drop much further, neither is it likely to bust."
The bank says home values are indeed rising at a faster pace than they used to, but the signs are pointing to a soft landing where prices stabilize — not a hard correction where prices drop quickly by 20 per cent or more.
"In our view, the national housing market is more like a balloon than a bubble," the bank said. "While bubbles always burst, a balloon often deflates slowly in the absence of a pin."
But demographic factors, consistently low interest rates, low construction costs and an influx of foreign buyers make it likely that no such pin will materialize for the foreseeable future, the bank said.
Average prices have grown more than twice as fast as family incomes since 2001, but BMO's report argues there's no reason to panic yet.
Nationally, home prices are 4.9 times higher than the average household income. A decade ago, that ratio was at 3.2.
Some cities are hotter than others. Vancouver's ratio currently sits at 10 times higher than average household income, Toronto's is at 6.7, Montreal's is at 4.5 while Halifax is at 3.8. Those are all on the high side, but if the market cools, that will allow incomes to catch up and move the price-to-income ratio lower, the bank argues.
The latest data from the Canadian Real Estate Association shows the national average price was $347,801 in December, a 0.9 per cent increase over the previous 12 months. That was the lowest level of growth since October 2010 and well below inflation, a possible sign that the market is already cooling.
The bank does note, however, three risks to the outlook. A sudden hike in interest rates, a widespread Canadian recession, or an economic slowdown in Asia reducing the number of foreign buyers would all take the air out of Canada's housing market.
"But barring one of these triggers, however, a dramatic correction is unlikely," the bank said.
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