Toronto Condo and Real Estate Blog

GTA Resale Housing Remains Stable in August

The Greater Toronto Area real estate market remained stable throughout the first half of this month, Toronto Real Estate Board President Maureen O’Neill announced today.

“We’re continuing to see consistent levels with respect to sales volumes and prices,” said Ms. O’Neill. “While the numbers are more conservative than those in recent years, the stability we’re experiencing should help sustain consumer confidence as we move into the fall real estate market.”

With 3,019 transactions in the Greater Toronto Area during the first half of the month, sales were down 13% compared to the 3,480 sales recorded at mid-August last year, and off eight per cent compared to the 3,290 sales recorded during the same period in 2006.

In the City of Toronto, 1,192 transactions were recorded, down 15% from the 1,411 sales that took place in the first half of August 2007, and off six per cent compared to the 1,269 sales that occurred in the same timeframe two years ago.

“While 2007 was a record year, it is still worthwhile to note that sales in the City of Toronto increased 11% between mid-August 2006 and mid-August 2007, before the Toronto Land Transfer Tax went into effect,” said Ms. O’Neill.

In the 905 Region there were 1,827 sales to mid-month, down 12% from the 2,069 transactions that took place in the same period a year ago, and off 10% from the 2,021 sales recorded in the first two weeks of August 2006.

Prices meanwhile, increased compared to the same timeframe last year. The current average price in the GTA is $373,844, up five per cent from the mid-August 2007 figure of $354,088.

In the City of Toronto the average price is currently $394,563, up seven per cent from the $370,037 figure recorded a year ago.

In the 905 Region the average price is $360,325, up five per cent from the $343,210 recorded at mid-August 2007.

There are currently 26,128 active listings, up 28% from the 20,365 properties available for sale a year ago. This has resulted in homes remaining on the market for a slightly longer period of 35 days compared to 32 days last August.

Several GTA neighbourhoods however, experienced brisk sales throughout the first half of this month.

In Whitby (E15) transactions increased 12% compared to the same period a year ago as a result of strong detached home sales.

Detached home sales also led Aurora (N06) to a 21% increase in transactions.

Streetsville (W19) saw eight per cent more transactions driven by a significant increase in the sale of attached row houses.

In Downtown Toronto (C01) transactions increased six per cent compared to mid-August 2007 as a result of strong sales in all housing types.

“It’s encouraging to see strong activity levels in pockets throughout all four corners of the GTA.” Said Ms. O’Neill.

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

While some areas saw a remarkable increase in sales in July, average sales numbers dropped slightly in most areas throughout Canada. Homeowners continue to see a healthy return, however, it is taking a little longer to achieve a sale, and the average time on market has increased slightly, due to the fact that there are more choices available to homebuyers.

In the City of Toronto 3,132 sales were recorded, down 14% from the 3,640 transactions in July 2007, but up 10% from the 2,852 sales recorded two years ago in 2006. Comparing July 2007 with July 2006, a period before the Toronto Land Transfer Tax went into effect in Toronto, sales increased 28%.

In July, certain neighbourhoods throughout the GTA experienced a remarkable increase is sales activity. Whitby, Brampton, Uxbridge recorded a 23-25% increase in sales compared to a year ago, based primarily on semi-detached home sales. The Annex recorded a 29% sales increase due to strong detached home and condo sales.

“While homeowners continue to see healthy returns, it is taking slightly longer to achieve a sale. The average time on market has increased to 33 days compared to 31 days a year ago,” said Ms. Maureen O’Neill, President of the Toronto Real Estate Board. “This may be due to that fact that there are now more choices available to the homebuyer. There are currently 26,543 active listings: a 28% increase from a year ago.”

The average number of days on market for a residential property sold in June was 46, only slightly higher than the 44 day average from June 2007.

“With the market stabilizing, there has never been a better time to be looking for a home,” added Ann Cosens, RAHB President. “Consumers have more properties to choose from and less pressure to make a quick decision. Prices continue to rise yet the market has a lot to offer all buyers.”

For sellers right now, you’ll need every bit of expertise and knowledge from your Realtor to establish a competitive price. Your agent will show you how your home stacks up with the vast number of comparable homes on the market and he/she will make recommendations as to its presentation, price and marketing strategy to ensure it gets sold.

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

New Law Requires Real Estate Agents to Collect and Verify ID of Buyers and Sellers

New federal laws and regulations designed to prevent money laundering and anti-terrorist financing went into effect June 23, 2008. Realtors must obtain proof of identity from all parties in any real estate transaction, even if one of the parties is not represented by a real estate agent. Realtors must also track the source of funds received during the course of a real estate transaction, such as the deposit. If the client is a corporation, corporate documentation and the names of the corporation directors must be provided and the corporation must disclose if a third party is involved in the transaction.

“Real estate agents have had legal obligations under the federal government’s push to prevent criminal activity and terrorism since 2001, when Canada’s first comprehensive laws to combat money laundering and terrorist financing were introduced,” says RAHB President, Ann Cosens. “Real estate agents were required to report only suspicious transactions or transactions involving more than $10,000 in cash.”

These new regulations are part of federal legislation (Bill C-25) passed in 2007 that requires a number of industries, including real estate, to do more to help stop money laundering and terrorist financing. The regulations are enforced by the federal agency known as the Financial Transactions and Reports Analysis Centre of Canada, or FINTRAC.

As part of the new rules, Realtors are required to keep all identification and the receipt of funds report on file for at least five years and provide it to FINTRAC. Realtors are also required to complete a report on the receipt of all funds received during a real estate transaction.

Also, under the new FINTRAC regulations, real estate agents dealing with clients they never meet must also verify identification. The broker office involved can do this with a service agreement with an agent or mandatary in the area where the client is located. The agent or mandatary must then meet the client, verify the identification of the client, and provide the information to the broker office handling the real estate transaction.

To comply with the new regulation, real estate agents will need to get more acquainted with their clients.

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