Toronto Real Estate Facts

Spring home buying frenzy continued in June. Buyers and sellers reached deals on 10,955 properties, which is 27% more compared to the same period last year. The average price for MLS sales was $403,972, up by two per cent compared to last year.

It is very unusual what is happening on the market and even the oldest agents in my office haven’t seen anything like this. All of the sudden we are seeing multiple offers, but it is hard to believe recession is coming to an end. I think that sellers were afraid to list so we have a shortage of supply. If that’s the case market will soon become balanced.

If you are a home buyer who missed Toronto Real Estate market bottom while waiting for recession to push home prices further down, then you should check out my article Where to get good deals now?

The commonly used Toronto Real Estate Board forms available for download below (in PDF format) offer clause-by-clause plain language explanations of the legal terminology used throughout them. Understanding what you are signing is essential to having a successful realestate transaction. Here are the links to our brand new 2009 TREB forms:

• Agreement of Purchase and Sale
• Agreement of Condominium Purchase and Sale
• Buyer Representation Agreement
• Buyer Customer Service Agreement
• Listing Agreement - Authority for Sale / Lease
• Seller Customer Service Agreement
• Confirmation of Cooperation and Representation

If you need FREE expert advice, to ensure a complete and accurate understanding of these Real Estate Forms, or you require any additional information regarding home buying & home selling in Toronto, York Region and surrounding areas do not hesitate to contact Jasmina, Royal LePage Real Estate Professional.

The Greater Toronto Area (GTA) communities that experienced strong activity in the first half of June are:

• Richmond Hill South (N03) experienced strong detached home sales, which resulted in a five per cent increase from mid-June 2007.
• In Caledon (W28) detached home transactions led to a nine per cent increase in sales over the same period a year ago.
• Condominium apartment transactions also drove West Agincourt (E05) to a 24 per cent increase in sales compared to the same timeframe a year ago.
• In Riverdale (E01) transactions increased 28 per cent compared to the first half of June 2007 driven by strong condominium apartment sales.

Resale home prices continued their upward trend in the first half of this month

The Greater Toronto Area (GTA) average price is currently $398,542, up four per cent over the $384,576 average from the same timeframe a year ago and up 11 per cent from the $358,648 recorded at mid-June 2006.

Past weeks were unbelievably busy for me and I didn't have time to post some great news about Richmond Hill Real Estate Market and just released Scotiabank Real Estate Forecast for Canada:

(1) Real Estate Outlook: No Major Correction in Canada's Housing Market

The latest Real Estate Trends Report issued by The Bank of Nova Scotia explains why the market has a more stable base than it did prior to the crashes of the 70s and 80s. Adrienne Warren, senior economist at Scotiabank, said there are a variety of reasons for confidence in the continued health of the housing market:

1. Unlike in the US, home prices in Canada are not substantially overvalued
2. Speculative home buying is not widespread
3. The real estate market is not overbuilt
4. Households are not over-leveraged and
5. Overall mortgage quality is still sound.

Still, the 10 per cent average annual increase in home prices over the past half decade was unsustainable, and a return to more historical norms is a welcome development, she said. "We predict a soft landing for the Canadian housing market, with somewhat lower sales and construction, and a period of relatively flat inflation-adjusted home prices... We expect overall sales volumes in 2008 to total about 15% below last year’s record levels, and home prices to increase on average by about 5%," Ms. Warren said.

The past decade has been one of the best on record for residential real estate in the Toronto area. Housing boom is ending, but there is no bubble to burst in The Greater Toronto Area real estate market.

(2) Toronto Real Estate Board: GTA Resale Housing Market Highlights

Greater Toronto Area neighbourhoods that experienced heightened activity during the first half of May are:

TREB mid-April existing-home sales figures wash away fears of Toronto real estate collapse and prove 'doomsayers' wrong. It was nasty winter weather and recently introduced Toronto Municipal Land Transfer Tax (LTT) that kept both buyers & sellers on the fence and contributed to the sluggish first quarter.

GTA Real Estate Market Heating up: Top Performing Neighbourhoods this Spring

• Willowdale (C07) saw a 75 per cent overall increase in transactions, driven by strong, detached, condo-apartment, and condo-townhouse sales.
• In Vaughan/Thornhill (N02), transactions increased by 53 per cent compared to mid-April 2007, as a result of strong detached home sales.
• Strong detached home sales also drove Brampton East (W24) to 37 per cent compared to the same timeframe a year ago.
• In Riverdale (E01) transactions are up 10 per cent, also as a result of strong detached home sales.

Greater Toronto Area Home Prices have Risen 7%

A few neighborhoods both within and outside of the 416 area code saw increased sales over the first half of February, 2007:

• Central Richmond Hill (N04) experienced a notable increase in sales compared to the same timeframe last year. Transactions were up 21 per cent, primarily due to an increase in attached row sales.
• In Ajax (E14) sales were up 11 per cent compared to mid-February 2007, based mainly on an increase in detached home sales.
• In the West region, the W03 (York South) district saw a 41 per cent increase in transactions, driven by strong sales of semi-detached homes.

Although Resale Home transactions in other Greater Toronto Area MLS districts declined in the first two weeks of February, several positive factors were also noted:

A strong performance within TREB's Central districts drove the Toronto area real estate market to a healthy 5,073 sales in January, off just two per cent from last year's record performance, Toronto Real Estate Board President Maureen O'Neill announced yesterday.

While sales were strong, price increases remained modest, with the average rising six per cent (compared to January 2007) to $374,449. There is clearly still a place for the first-time home buyer in today's resale market, said Ms. O'Neill.

The strongest activity last month took place in Toronto's Central and East MLS districts:

It seems each month has been a record breaker for the real estate industry in York Region and across the GTA. Central Richmond Hill N04 district led the way in January with a 59 per cent overall increase in sales compared to mid-January 2007, mainly as a result of attached/row house transactions.

Across the Greater Toronto Area there were 1,776 transactions, an increase of 11 per cent increase over the same timeframe a year ago, announced Toronto Real Estate Board President Maureen O’Neill. The average time a property is currently on the market is 41 days, down 13 per cent as compared to a year ago. The average price also increased considerably compared to the first half of January 2007. It currently stands at $367,574 an eight per cent increase over the $340,793 recorded at mid-January a year ago.

Strong Activity in other areas of the Greater Toronto Market

Sales of existing homes in Greater Toronto Area set an annual record early!

TREB, November 19, 2007 -- 2007 has already become the best year on record for resale homes in the Greater Toronto Area. 84,994 properties have changed hands, as compared to 84,145 sales in 2005, our previous best year, Toronto Real Estate Board (TREB) President Maureen O’Neill announced today. "All of the economic conditions remain in place for a strong housing market in the GTA. The unemployment rate fell by approximately half a percent last month, Statistics Canada anticipates sustained immigration throughout the next decade and mortgage rates remain historically low," said Ms. O’Neill. "Toronto is a very vibrant city in which to live and compared to other urban centres like New York, Los Angeles and London, our housing is very affordable."

Toronto Star, November 20, 2007 -- "Generally speaking, it's odd to see a real estate cycle last this long," says Ted Tsiakopoulos, Ontario regional economist for the Canada Mortgage and Housing Corp. "It seems we've reached a new paradigm where low interest rates, low inflation and a steady job market have kept this going a while longer than most people thought." Other factors at play in 2007 include the introduction of longer-term amortizations in the market, which has allowed new buyers to get a foot in the door, and higher new-home prices that have pushed people back into the resale market, says Tsiakopoulos.

November GTA Home Sales Highlights

Resale home transactions in Greater Toronto Area reached unprecedented heights in the first half of August, up 17% from the same period in 2006. Richmond Hill was among the GTA areas with record MLS home sales activity:

• This month, Detached and Condominium Apartment sales in South Richmond Hill (MLS district N03) fueled an overall increased of 41% as compared to the same timeframe a year ago.
• Last month, transactions in Central Richmond Hill (MLS district N04) increased 77% over July 2006, due to a 100% increase in Attached / Row-House sales and strong performances in most other house types.

“The market has shown tremendous strength in recent months” said Toronto Real Estate Board President Donald Bentley. “Given that August sales have been brisk thus far and that the past four consecutive months have all set records, we are looking forward to a robust fall market.”

What Does Market Volatility Mean for Canadian Real Estate?

TORONTO, August 3, 2007 -- Last month, the local resale market was 26 per cent more active than during the same time in 2006, TREB President Donald Bentley announced today:

• Transactions in Richmond Hill (N04) increased 77 per cent over July 2006, due to a 100 per cent increase in Attached / Row-House sales and strong performances in most other house types.
• A large increase in Condominium Apartment sales was responsible for a 40 per cent increase in total sales for North York (C14). There were 5,115 sales in the North York area (C04,C06,C07 and C12 through C15) during the first seven months of 2007, up 12 per cent over the 4,583 sales recorded during the same time-frame in '06. The average price came in at $488,663, a five per cent increase over last year.
• Strong sales of Detached Homes and Condominium Apartments in the South Humber part of Etobicoke (W07) contributed to a 116 per cent increase in total transactions over the same time last year.
• Home Buyers are flocking to live in Riverdale area (E01), which saw a 73-per-cent increase in sales from the previous July.

Single-detached average price in excess of $500,000

in close to half Toronto Real Estate Board's MLS districts! Unprecedented demand for single-detached homes along the Yonge Street corridor prompted double-digit price increases in the GTA's top performing neighbourhoods in the first six months of 2007, finds new Re/Max report. "To date, 51 per cent of districts reported double-digit sales gains for detached homes and 44 per cent for condominiums. It's been another banner year for real estate, and it's far from over" says Michael Polzler.

Detached Houses

Demand is particularly evident in the central core - from Bloor St. north to Highway 7 - where average price ranges from $565,000 to well over a million. In fact, nearly 60 per cent of 'C' districts reported double-digit increases in unit sales for the first half of the year." Last year at this time, appreciation had slowed in the central core as the average price approached $830,000. Buyers were investigating more affordable alternatives east, north, and west of the city centre. This year, despite an average closer to $875,000, demand for properties is at an all-time high in the district and a limited supply of product has purchasers vying for homeownership. In June, four central districts (C02, C10, C11 and C15) reported a sales-to-listings ratio above 100 per cent. Multiple offers remain commonplace on quality, well-priced product, with detached homes selling for 100 per cent of list price or more in all but one central district in June.

Top five Toronto Real Estate Board (TREB) Districts by Average Price Appreciation are:

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Year ends with a strong December

TORONTO, January 4, 2007 -- Resale housing activity in December increased by four per cent compared to the same month a year ago, Toronto Real Estate Board President Dorothy Mason announced today.

Year-over-year, the average price in 2006 rose five per cent over the $335,907 recorded in 2005 to $351,941. “This means that prices continue to outpace inflation, making home-ownership a sound investment in today's economy and invariably in the long term”.

“The market is on solid footing and is in excellent shape heading into 2007,” TREB’s President said. The winter season is an excellent time to be active in this healthy market, whether starting out as a first time buyer or making a move to a different home.”

TORONTO, December 6, 2006 -- The Greater Toronto Area’s resale housing market maintained its strong pace in November as 6,281 homes changed hands during the month, Toronto Real Estate Board President Dorothy Mason announced today.

November market on solid footing

“Existing home sales have remained very respectable through the first two months of the fourth quarter,” Mr. Mercer said. “Home buyers have remained confident in their ability to purchase a home due to low borrowing costs and steady employment and wage growth, on average.”

In the city’s east end, Scarborough Town Centre / Woburn (E09) saw an increase in overall sales of 30 per cent compared to November 2005, led by a jump in condominium transactions.

A jump in transactions of semi-detached homes fueled an overall sales increase of 53 per cent in the York South area of Toronto (W03) compared to the same timeframe a year ago.

North of Toronto in Richmond Hill North (N05), detached homes were the most common housing type changing hands as the area saw an overall increase in sales of 29 per cent compared to last November.