Toronto Condo and Real Estate Blog

GTA resale housing market down but still healthy

The Greater Toronto real estate market saw 3,955 homes change hands in the first half of April, down 5% from the same time period last year, Toronto Real Estate Board President Maureen O’Neill announced today.

“The first half of April brought sales activity within five per cent of mid-April 2007,” said Ms. O’Neill.

In the City of Toronto sales are down 11% compared to a year ago, with 1,514 transactions taking place. Inthe 905 suburbs, sales are down just over 1% to 2,441 for mid-month April 2008 from 2,477 sales midmonth April 2007.

Throughout the GTA prices have risen 7% compared to the same timeframe last year, to an average of $399,117. In the City of Toronto the average stands at $454,211 up 10% over mid-April 2007. The 905 Region has seen a 6% increase compared to a year ago, with a current average price of $364,939.

The number of listings on the market is 1% greater than last year with current inventory sitting at 22,985.

This indicates that inventory is on the rise. The positive news is homeowners are selling their homes with an average of 28 Days on Market compared to 30 a year ago. The slight increase in inventory levels and house prices are encouraging factors.

A number of GTA neighbourhoods showed strong sales activity during the first half of this month.

Willowdale (C07) saw a 75% overall increase in transactions, driven by strong, detached, condo-apartment, and condo-townhouse sales.

In Vaughan/Thornhill (N02), transactions increased by 53% compared to mid-April 2007, as a result of strong detached home sales.

Strong detached home sales also drove Brampton East (W24) to 37% compared to the same timeframe a year ago.

In Riverdale (E01) transactions are up 10%, also as a result of strong detached home sales.

“We’re also seeing sellers achieve on average 99% of their asking price, which is 1% higher than a year ago,” said Ms. O’Neill. “April’s numbers point to a stable, healthy market for the Greater Toronto Area this spring. However the Toronto Real Estate Board still remains wary of the Land Transfer Tax in Toronto.”

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Low inventory levels kept the Greater Toronto real estate market brisk but well off record levels last month, Toronto Real Estate Board President Maureen O’Neill announced today.

“Overall sales in the GTA declined 22% compared to March 2007, 27% in the City of Toronto and 18% in the 905 suburbs,” said Ms. O’Neill. “It’s important to recognize though, that despite the worst winter in decades, 6,631 homes changed hands last month in the GTA and that is still a significant number.”

Diminished listing inventory, which at 20,533, was down six per cent from a year ago, kept prices strong in March.

Compared to last March, the average price in the GTA rose four per cent to $380,338 and two per cent in the City of Toronto to $404,361.

As well, a few neighbourhoods experienced increased sales activity last month.

Bowmanville (E17) saw a three per cent increase in transactions compared to March 2007, driven primarily by strong detached home sales.

Sales in Burlington (W25) were up 18% compared to a year ago, with brisk activity in most housing categories.

Thorncliffe Park (C11) saw a six per cent overall increase in transactions, based mainly on semi-detached sales.

Increased semi-detached transactions also drove sales in Georgina (N17) up one per cent compared to last March.

Ms. O’Neill says March’s moderate performance isn’t disquieting given that Canadian economic fundamentals are holding steady.

“Forty per cent of international households that come to Canada settle in the GTA, giving us robust immigration levels; employment and wages continue to be strong; borrowing costs remain at historically low levels and there is a wide variety of mortgage products from which to choose,” she said.

“This means that there is a steady demand for housing and consumers should have the financial resources to buy homes; with such pent-up demand it is an excellent time to sell your home.”

“We remain concerned about the land transfer tax in Toronto and the economic slowdown in the United States,” added Ms. O’Neill. “Home sales in the City of Toronto spiked towards the end of 2007 probably in a bid to avoid the Toronto land transfer tax, but have since dropped off since the introduction of the tax.”

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Contact the Jeffrey Team for more information - 416-388-1960

By Jeff Gray - Globe and Mail

In an effort to change the Byzantine process in which homeowners must engage to appeal their property tax assessments, the Ontario government plans to put the onus on the assessment agency to prove its case when a taxpayer appeals.

Yesterday’s provincial budget promises new legislation - as recommended in a critical report by the province’s ombudsman two years ago - to put the burden of proof on the Municipal Property Assessment Corp., instead of on homeowners.

The move comes in addition to a new property tax grant for low- and middle-income senior citizens that is meant to help them stay in their homes as property taxes rise. In addition to existing tax credits, the new grant would see eligible seniors, depending on their incomes, get a maximum additional $250 in 2009, and $500 in 2010.

“This will help keep seniors in their homes,” said Finance Minister Dwight Duncan, citing rising property taxes that are forcing some on fixed incomes to sell their houses.

The government also promises other changes to the appeal process, meant to make it “more streamlined and transparent,” including a new, free-of-charge first phase to resolve disputes in an “informal manner.”

Provincial officials are also working on ways to get MPAC to share more information with taxpayers, the budget document said.

The new rules are supposed to be in place for 2009.

Progressive Conservative Leader John Tory dismissed the moves yesterday.

“The onus should always have been on MPAC and on the government,” Mr. Tory said.

“Citizens should not be put in the position where they have to prove themselves or make their case to the government.”

He said the government should implement all of the ombudsman’s recommendations on changes to MPAC, not just one.

Mr. Tory said a Conservative government would bring in a 5% cap on property-tax assessment increases, instead of phasing in increases as the McGuinty government started doing in 2007: “That just means people will lose their homes over a longer period of time. We would have provided permanent, real, lasting protection for people.”

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Contact the Jeffrey Team for more information - 416-388-1960