Average Selling Price For A Home In Toronto Increases By 11%

Toronto Home Sale Prices from the TREB. Click for full size.

According to the Toronto Real Estate Board’s mid-April home sales statistics, home sales through the Toronto MLS Listings in Toronto increased by 10.8 per cent during the first two weeks of April compared to the same time last year.

“The robust increase in sales speaks to the fact that home ownership remains affordable in the GTA,” said Dianne Usher, the president of the Toronto Real Estate Board in a press release. “The majority of home buyers purchase a home using a mortgage. A household earning the average income in he GTA can comfortably afford a mortgage on an average priced home.”

She continued, “While the persistent listings shortage in the GTA, coupled with strong demand, has led to a brisk pace of price growth, very low advertised mortgage rates have gone a long way to mitigating the effect of upward trending home prices.”

The average selling price for a home in Toronto during the first 14 days of April 2014 as up by 11 per cent over the same time last year, to $583,697.

“The overall average price increase was driven by single-detached, semi-detached and townhouse sales in the City of Toronto,” said Jason Mercer, the senior manager of Market Analysis for the Toronto Real Estate Board in the same press release. “There was a substantial increase in higher-end home sales this year compared to last. This time last year, many would-be home buyers and sellers were still on the sidelines due to changes in federal mortgage lending guidelines, including those guideline changes that removed the government guarantee on mortgage insurance on home sales over one million dollars. However, many of these households have subsequently adjusted to the lending guideline changes and have recently purchased a home.”

Toronto Semi-Detached House Average Hits $658,000

March 2014 Toronto Real Estate Market Report

Sales were right at average for March with 8,081 houses and condominiums changing hands in all the districts.

2014-March-Semi-Detached-Sale-STATSbCondo townhouses and high-rise suites had a 30.8% share of the market with 2,487 units being sold.

The March average sale price for all GTA homes came in at $557,684– up 7.3% from 2013.  I’ll show you a graph of the average sale prices over the past several years in just a moment.

The active listing inventory is one of the strongest indicators of how smooth or outrageous the market is going to be.  We had a 7% decline in inventory for the month of March compared to historical numbers and lower by 10% from last year at this time.

The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in.  24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.

In March that ratio finished at 48.8% – up 8% from last year’s market dip and lower than the last few years but certainly higher than historical averages for the month pre-2009.  By the numbers, the overall market is in ‘moderate-to-busy’ seller market territory although single-family houses are at a busy 90+% ratio for the month!

The days-on-market average for the entire Toronto Real Estate Board was 21 – 5 days faster than February – impressive when you consider the crappy weather we had during the month!

Watch the video to get the complete March Market Report details.

Here’s the complete text version of the March Toronto Real Estate Market Report to read.

Monthly Rent For A Two-Bedroom Condo Hits Average $2,155 In Toronto

The Toronto Real Estate Board has released its condo rental market statistics for the first quarter of 2014, finding that the average rent for a two-bedroom unit during this time increased by 1.9 per cent over the same time last year to $2,155. The average rent for a one-bedroom unit was down by 1.6 per cent, to an average of $1573.

Toronto Condo Rental Stats from the TREB. Click for full size.

Toronto Condo Rental Stats from the TREB. Click for full size.

The president of the Toronto Real Estate Board, Dianne Usher, had the following to say: “Renters took advantage of an increased supply of investor-owned units listed for rent in the first quarter. These units, with modern finishes, chose amenities and locations in popular neighbourhoods attracted a growing number of renter households, including young professionals, moving close to work in downtown Toronto and new comers to Canada who initially chose to rent.”

The number of rental transactions through the Toronto MLS Listings was up by 17.8 per cent, while the number of listings increased by 27.7 per cent.

“The condominium apartment rental market has become better supplied over the past 12 months as a number of new projects reached the completion stage,” said the Toronto Real Estate Board’s senior manager of Market Analysis, Jason Mercer. “While rental demand has remained strong, and many investor-owned rental units have been absorbed, the increase in supply has given prospective renters more choice, so the pace of average rent growth has moderated.”

Considering Buying A Toronto Home With Friends Or Family?

Taking a less traditional approach to buying a home is something that a lot of buyers might consider, especially if the plan is to use the property as an investment property.  Toronto-Real-Estate-Co-Buying

TD Canada Trust recently released a helpful article on the considerations buyers should make when they’re planning to purchase a home as a group with family or friends.

“Whether buying a home on your own or together in partnership with family members or friends, many of the guiding principles remain the same,” said the Associate Vice President of Retail Products at TD, Michelle Snow. “Start by setting a realistic budget, talking to a mortgage specialist for advice and taking the time to make an informed decision. The real estate market may move fast, but that doesn’t mean you have to rush your decision.”

There are several decisions to be made when planning a co-buying home purchase. First and foremost, the parties involved should agree on a down payment and a budget.

“Once homebuyers set their budget and down payment, they can take their prospective monthly mortgage payment for a test-drive and ‘pay’ into a TFSA or savings account,” Snow said. “This two-fold solution allows the homebuyer to see how comfortable the monthly mortgage payment is before locking in and save for a larger down payment at the same time. For co-purchasers, it opens the line of communication to talk about how these monthly payments will work after the purchase.”

Of course, buying a home doesn’t stop at the costs involved. There’s the home too! All parties involved should determine what properties they want the home to have and agree on how the home will be used –  for example, will all of the parties share the home, or use it once in a while as a vacation residence?

“The last thing new homeowners want is an unwelcome surprise when they’re about to sign on the dotted line. Whether purchasing alone, or with a co-purchaser, a mortgage specialist can help navigate home financing questions well before they’ve entered the house hunt, so they can make informed decisions that can save money and stress in the long run,” said Snow.

Should The Toronto Land Transfer Tax Be An Election Issue?

According to Toronto Real Estate Lawyer Bob Aaron’s latest Toronto Star column, it definitely should be. Toronto-Real-Estate-Bob-Aaron-Land-Transfer-Tax

The Toronto Real Estate Board has been putting a significant amount of effort into their campaign to phase out the Land Transfer Tax, which can add thousands to the cost of buying a home in the city and according to recent poll results, could have home buyers looking outside of the city to buy their homes.

In his Toronto Star Column, Mr. Aaron suggests gradually increasing property taxes instead to make up nay budget shortfall, as Toronto’s municipal taxes are much lower than that of surrounding areas. This would bring Toronto more in line with those areas without hurting buyers.

You can read his column in its entirety at the Toronto Star.

 

 

Does Your Home Insurance Policy In Toronto Really Cover You?

In the video, we learn that many homeowners whose homes were damaged in the severe flooding Toronto experienced over last summer weren’t covered.Toronto-Real-Estate-Home-Insurance

In another part of the video, a woman who purchased mortgage life insurance was denied coverage after her husband died because of an error they made when filling out the form.

The video is in three segments, informing viewers about loopholes and issues that can arise with car insurance, travel insurance and home or mortgage insurance.

The video features Toronto Real Estate Lawyer Bob Aaron and is definitely worth viewing if you have a few spare minutes today!

You can watch the video here.

Toronto Average Home Sale Price Increases Almost 6% In Mid-March

The Toronto Real Estate Board says in it’s latest TorontoMLS statistics release that the average selling price of a home in toronto has increased by six per cent during the first two weeks of March compared to the same time last year.

Toronto-Real-Estate-MLS-Listings-Mid-March-2014

Click for full size.

According to Jason Mercer, the senior manager of Market Analysis for the Toronto Real Estate Board, “Semi-detached houses represent a more affordable ownership option for some households. Because of this, some semi-detached listings have attracted many interested buyers. This competition has served to exert strong upward pressure on the average selling price.”

Home sales during the first half of March 2014 were basically the same as during the same time period in 2013, with 3,464 transactions.

“Despite the poor weather conditions experienced during the first half of March, an abundance of willing buyers were actively searching for a home to purchase,” said the president of the Toronto Real Estate Board, Dianne Usher. “However, many of these people continued to be affected by the enduring shortage of single-detached, semi-detached and townhouse listings, which means that in some cases they could not find a home on which to make an offer, or they were facing stiff competition form other buyers.”

Give Your Toronto Home A Spring Check-Up

The busy spring market is here! Keeping your home properly maintained is an integral part of maintaining its value, and this is especially important if you intend to sell this year. Toronto-Real-Estate-Spring-Check-Up

Here are some tips on the best ways to give your home a bit of a check-up, which will prevent more costly issues from arising later on.

Check your roof. If you’re not comfortable doing it yourself, you can get a roof inspection done. Missing shingles or even a roof in minor disrepair can lead to moisture intrusion and very expensive and necessary repairs later on. Gain some peace of mind for the time being! Oh, and while you’re up there – clean your cutters. All of last year’s leaves can prevent water from being diverted properly, and lead to even more moisture intrusion problems.

Re-paint where necessary. Winter can do a number on your home’s paint job if it was already so-so before the temperatures dropped. Make sure that there’s no peeling paint on your home’s exterior. If there is, it’s time for a good re-painting.

Give your lawn some TLC. One of the worst things to do to a lawn is not rake up the fallen leaves each Autumn, leading to wet leaves suffocating your lawn throughout the spring months. This can lead to mould and permanent damage, so remove any leaves as soon as possible to keep your lawn healthy and tidy-looking.

Change your filters. Your HVAC system has been keeping you comfortable all winter, so reward it with a fresh filter if you’re not already in the habit of changing your filters monthly. This will ensure that your HVAC system is more capable of removing excess humidity from the air and runs more efficiently in general, lowering your hydro bills.