Toronto Condo and Real Estate Blog

Source: RealNet Canada Inc.

Toronto — Sales of new condos in Toronto last year came within a hairs-breadth of the all-time high while the proportion of condo sales smashed the all time record, Bob Finnigan, president of the GTHBA-UDI, said today.

The new home sales data, compiled for GTHBA-UDI by RealNet Canada Inc., reveals that there were 17,617 new Toronto condos sold in 2006, a mere 23 units fewer than in 2005, when the previous record was established. However, with 4.4 out of every 10 new home sales in 2006 being condos, the proportion of the total new home market made up of this built-form reached new heights, up from 42 per cent in 2005 and 33 per cent in 2004.

In total, there were 39,790 new home sales in 2006, down 2,202 units or 5 per cent from 2005, but still a very good year relative to the forecasts and historical standards. While Toronto condo sales held their own, low-rise (single- and semi-detached units and town-homes) unit sales declined by nine per cent year over year resulting in the overall five per cent decrease.

“The new home market remains strong and vibrant, based first and foremost on the aspirations of GTA home buyers to buy their first home or move up to their dream home, combined with low mortgage rates and tremendous choice and value in the new home market,” Finnigan said.

Finnigan noted that the increasing Toronto condo market share is a reflection of the $82,097 price differential between low-rise and condo units. The RealNet new home price index for low-rise homes currently sits at $403,450 while the condo index is $321,353.

The index is essentially the average asking price of all the remaining new homes and condos in Toronto currently available for sale, as calculated by RealNet Canada Inc., the GTHBA’s independent source of new home market information.

The new home price index is based on currently available new home offerings, weighted by remaining inventory, for projects of 15 or more units, excluding ultra-luxury product across the GTA.

Finnigan added that the price differential shrunk from over $95,000 a year ago, as high-rise prices increased much more (9.1 per cent) than low-rise prices (3.4 per cent) over the last year. On that basis, he foresees a rebalancing of the market in 2007 with a very healthy forecast of 37,500 new home sales split 60/40 low/high rise.

———————————————————————————

Contact the Jeffrey Team for more information

High-rise condo market share hits all time-high

From The Condo Guide Magazine

Sales of new high-rise condos in the Greater Toronto Area last year came within a hairs-breadth of the all-time high while the proportion of high-rise condos sales smashed the all-time record, says Bob Finnigan, President of the Greater Toronto Home Builders’ Association and Urban Development Institute/Ontario (GTHBA-UDI).

The new-home sales data, compiled for GTHBA-UDI by RealNet Canada Inc., reveals that there were 17,617 new high-rise condos sold in 2006, a mere 23 units fewer than in 2005, when the previous record was established. However, with 4.4 out of every 10 new-home sales in 2006 being high-rise condos, the proportion of the total new-home market made up of this built-form reached new heights, up from 42% in 2005 and 33% in 2004.

In total, there were 39,790 new-home sales in 2006, down 2,202 units or 5% from 2005, but still a very good year relative to the forecasts and historical standards. While high-rise condo sales held their own, low-rise (single- and semi-detached units and townhomes) unit sales declined by 9% year over year, resulting in the overall 5% decrease. “The new-home market remains strong and vibrant, based first and foremost on the aspirations of GTA homebuyers to buy their first home or move up to their dream home, combined with low mortgage rates and tremendous choice and value in the new-home market,” says Finnigan.

Finnigan noted that the increasing high-rise condo market share is a reflection of the $82,097 price differential between low- and high-rise units. The RealNet new-home price index for low-rise homes currently sits at $403,450 while the high-rise condo index is $321,353.

The index is essentially the average asking price of all the remaining new homes and condos currently available for sale, as calculated by RealNet Canada Inc., the GTHBA-UDI’s independent source of new-home market information.

The new-home price index is based on currently available new home offerings, weighted by remaining inventory, for projects of 15 or more units, excluding luxury real estate across the GTA.

Finnigan added that the price differential shrunk from over $95,000 a year ago, as high-rise condo prices increased much more (9.1%) than low-rise prices (3.4%) over the last year. On that basis, he foresees a rebalancing of the market in 2007 with a very healthy forecast of 37,500 new-home sales split 60/40 low/high rise.

With more than 1,500 members, GTHBA-UDI, formed through the merger of the Greater Toronto Home Builders’ Association and Urban Development Institute/Ontario, is the voice of the residential land development, home building and professional renovation industry in the Greater Toronto Area. The GTHBA-UDI is proudly affiliated with the Ontario and Canadian Home Builders’ Associations.

The Condo Guide Magazine is an excellent source of housing information for those looking for information on new condos in Ontario, Canada. We offer the most up-to-date information on new condominiums across the greater Toronto area.

———————————————————————————

Contact the Jeffrey Team for more information

In an open letter to Toronto Mayor David Miller, the Toronto Real Estate Board has raised concerns about a possible home-buying tax in Toronto.

The Toronto Real Estate Board’s letter provided Mayor David Miller with Realtors’ initial input to a City discussion paper on potential new revenue sources. Of particular concern to the Toronto Real Estate Board is the possibility of a Toronto land transfer tax, which would be levied on top of the existing provincial land transfer tax, meaning that Toronto homebuyers would be faced with paying this type of tax twice for the same transaction.

“Let’s call a spade a spade. A land transfer tax is a home-buying tax. It is a tax charged directly to homebuyers when they purchase a property, which is usually intended to offset costs for providing services directly related to real estate transactions. If the City intends to charge a land transfer tax just to raise additional revenue for general municipal services, is it fair to expect homebuyers to pay for services that the whole community benefits from?”, said Dorothy Mason, President of the Toronto Real Estate Board.

“If the City adopts a land transfer tax, Toronto homebuyers will be faced with a double whammy of land transfer taxes - a municipal land transfer tax and a provincial land transfer tax,” added Mason.

The provincial government already charges a land transfer tax on property transactions. For the average Toronto home, according to the Toronto Real Estate Board’s statistics, the provincial land transfer tax payable is approximately $4,200.

“If the City moves ahead with a second land transfer tax of 0.5%, as is being considered, average Toronto homebuyers could be faced with paying almost $1,900 on top of the $4,200 that they already have to pay for the existing provincial land transfer tax, money that could be spent on other expenses when purchasing a home such as appliances. That’s an additional 45% in land transfer tax. Even a 0.1% Toronto land transfer tax would represent almost a 10% increase in land transfer taxes. Also, with total closing costs (e.g. legal fees, land transfer tax) usually around 1.5% of a property’s selling price, a 0.5% Toronto land transfer tax would represent a 33% increase in closing costs”, said Mason.

The Toronto Real Estate Board’s letter to Mayor Miller outlined specific concerns about the impact that a second land transfer tax would have for the City.

“Mayor Miller and all of City Council should realize that forcing Toronto homebuyers to pay a second land transfer tax will have implications for the City. It will make Toronto real estate less affordable, and encourage homebuyers to choose to live outside of the City, where they only have to pay the land transfer tax once. This could mean more commuting, more traffic, and environmental impacts, like smog, for the GTA”, said Mason.

Toronto real estate agents are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service designed exclusively for Realtors. Serving more than 25,000 Realtors throughout the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board.

———————————————————————————

Contact the Jeffrey Team for more information