Friday, December 7, 2018

■Market Watch | December, 2018


GTA REALTORS® Release November Stats

December 5, 2018
 -- Toronto Real Estate Board President Garry Bhaura announced the continuation of moderate price growth in November 2018 compared to November 2017. The MLS® Home Price Index (HPI) Composite Benchmark was up by 2.7 per cent year-over-year. The average selling price was up by 3.5 per cent year-over-year to $788,345.

Greater Toronto Area REALTORS® reported 6,251 residential transactions through TREB's MLS® System in November 2018. This result was down by 14.7 per cent compared to November 2017, when we saw a temporary upward shift in demand as the market was distorted by the looming OSFI-mandated stress test at the end of last year.

"New listings were actually down more than sales on a year-over-year basis in November. This suggests that, in many neighbourhoods, competition between buyers may have increased. Relatively tight market conditions over the past few months have provided the foundation for renewed price growth," said Mr. Bhaura.

On a preliminary seasonally adjusted basis, sales were down by 3.4 per cent compared to October 2018. The average selling price after preliminary seasonal adjustment was down by 0.8 per cent compared to October 2018.

"Home types with lower average price points have been associated with stronger rates of price growth over the past few months. Given the impact of the OSFI-mandated mortgage stress test and higher borrowing costs on affordability, it makes sense that the condo apartment and semi-detached market segments experienced relatively stronger rates of price growth in November, as market conditions in these segments remained tight or tightened respectively over the past year," said Jason Mercer, TREB's Director of Market Analysis.

Thursday, November 8, 2018

■Condo & Rental Market Report | Q3 2018

Condo Market Report

October 18, 2018 
-- Toronto Real Estate Board President Garry Bhaura announced that the average selling price for condominium apartments reported sold by Greater Toronto Area REALTORS® through TREB's MLS ® System in the third quarter of 2018 was up by 8.4 per cent year-over-year to $552,269. The MLS® Home Price Index (HPI) Apartment Benchmark Price was up by 10.1 per cent year-over-year to $506,300 in September 2018.

The highest average condominium apartment selling price was in the City of Toronto, at $594,039. This result was up 9.7% compared to Q3 2017. The MLS® HPI Apartment Benchmark Price for the City of Toronto was up by 11.5 per cent year-over-year to $535,600 in September 2018.

"Condominium apartments represent a relatively affordable home ownership option in the Greater Toronto Area, particularly for first-time buyers. Looking forward, strong demand for condo apartments should continue as people move to the GTA to take advantage of quality job opportunities, including those jobs associated with recent investment announcements from well known tech companies," said Mr. Bhaura.

Total condominium apartment sales reported through TREB's MLS® System amounted to 5,781 in Q3 2018 – up two per cent from 5,667 sales reported in Q3 2017. Conversely the number of new listings was down 2.1 per cent on a year-over-year basis. The combination of increasing sales and decreasing new listings year-over-year points to tighter market conditions, supporting the current strong annual rates of price growth.

"Recent survey results from Ipsos revealed that the vast majority of young people in the GTA are concerned about home ownership. Nearly 92% of respondents agreed that the goal of home ownership is becoming more difficult for younger people in the city. With these insights in mind, it makes sense that relatively more affordable home ownership alternatives like condo apartments have been very popular with home buyers over the past year," said Jason Mercer, TREB's Director of Market Analysis.


Rental Market Report

October 18, 2018 – Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® continued to report robust average annual rent increases for condominium apartments during the third quarter 2018 compared to Q3 2017. The overall number of lease transactions for condominium apartments was also up by 5.8 per cent year-over-year to 9,215 in Q3 2018.

“Sustained population growth and low unemployment continued to drive demand for condominium apartment rentals in the GTA in the third quarter. Recent major investment announcements positively impacting the GTA economy will only further cement the demand for rental housing, as people move to the GTA to take advantage of quality job opportunities,” said Mr. Bhaura. “Policy makers, including those running for election at the municipal level, need to identify and fix existing policies that are hampering the ability to bring more rental supply on line. These same policy makers also have to develop new policies that could promote the development of more rental units moving forward,” added Mr. Bhaura.

The average one bedroom condominium apartment rent increased by 9.5 per cent on a year-over-year basis to $2,163 in Q3 2018. The number of one-bedroom condominium apartments leased through TREB’s MLS® system totaled 5,344 – up 10.3 per cent compared to Q3 2017.

The average two-bedroom condominium apartment rent increased by 8.3 per cent on a year-over-year basis to $2,822 in Q3 2018. The number of two-bedroom condominium apartments leased through TREB’s MLS® System amounted to 3,289 – a 1.7 per cent decrease compared to Q3 2017.

“Average rents are continuing to increase at annual rates far beyond the rate of inflation in the GTA as rental demand remains very strong relative to the supply of units available. We will need to see a sustained period of time within which growth in the number of rental units listed outstrips growth in the number of units leased before we see the rental market return to balance. Policies like the recently expanded rent control provisions contained in the Fair Housing Plan will hinder sustained growth in the supply of rental units,” said Jason Mercer, TREB’s Director of Market Analysis.



■This Month in Real Estate | NOVEMBER 2018


■Market Watch | November, 2018


GTA REALTORS® Release October Stats

November 5, 2018 -- Toronto Real Estate Board President Garry Bhaura announced year-over-year increases in home sales and average sale prices reported through TREB's MLS® System in October 2018.

Greater Toronto Area REALTORS® reported 7,492 sales through TREB's MLS® System in October 2018 – a six per cent increase compared to October 2017. On a preliminary seasonally adjusted basis, sales were down by one per cent compared to September 2018.

The average sale price for October 2018 was up 3.5 per cent on a year-over-year basis to $807,340. After preliminary seasonal adjustment, the average selling price was up one per cent compared to September 2018. The MLS® Home Price Index (HPI) Composite Benchmark was up by 2.6 per cent compared to October 2017. Price growth continued to be driven be the condominium apartment and higher density low-rise market segments.

"Annual sales growth has been positive since the late spring. While the OSFI stress test and higher borrowing costs have kept sales below 2016's record pace, many households in the Greater Toronto Area remain upbeat on home ownership as a quality long-term investment. A strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2019," said Mr. Bhaura.

There were 14,431 new Listings entered into TREB's MLS® System in October 2018 – down 2.7 per cent compared to October 2017. The fact that sales were up and new listings were down year-over-year in October suggests that market conditions became tighter.

"Annual sales growth has outstripped annual growth in new listings for the last five months, underpinning the fact that listings supply remains an issue in the Greater Toronto Area. With municipal elections in the rear view mirror, all levels of government need to concentrate on policies that could remove impediments to a better-supplied housing market, including facilitating the development of a broader array of medium density housing choices," said Jason Mercer, TREB's Director of Market Analysis.


Friday, October 5, 2018

■This Month in Real Estate | OCTOBER 2018


■Market Watch | October, 2018


GTA REALTORS® Release September Stats

October 3, 2018
 -- Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® reported 6,455 sales through TREB's MLS® System in September 2018 – up 1.9 per cent compared to September 2017. The average selling price for September 2018 sales was up by 2.9 per cent over the same period to $796,786. The MLS® HPI composite benchmark price was up by two per cent year-over-year.

New listings entered into TREB's MLS® System in September 2018 amounted to 15,920 – down by 3.1 per cent compared to September 2017. With sales up year-over-year and new listings down, market conditions became tighter. Many buyers may have found it more difficult to find a home meeting their needs.

"It is healthy to see sales and prices in many areas across the Greater Toronto Area up a bit, compared to last year's lows. At the same, however, it is important to remember that TREB's market area is made up of over 500 communities. Market conditions have obviously unfolded differently across these communities. This is why it's important to work with a REALTOR® who is familiar with local market conditions in your areas of interest," said Mr. Bhaura.

"While higher borrowing costs and tougher mortgage qualification rules have kept sales levels off the record pace set in 2016, many households remain positive about home ownership as a quality long-term investment. As the GTA population continues to grow, the real challenge in the housing market will be supply rather than demand. The Toronto Real Estate Board is especially concerned with issues affecting housing supply as we move towards municipal elections across the region," added Mr. Bhaura.

On a monthly basis, after preliminary seasonal adjustment, sales edged up by 0.2 per cent in September 2018 compared to August 2018. The average selling price, after preliminary seasonal adjustment, edged lower by 0.5 per cent month-over-month.

"Generally speaking, annual rates of price growth have been stronger for higher density home types in 2018, including condominium apartments, townhouses and semi-detached houses. In many neighbourhoods, these home types provide more affordable home ownership options. This is why a policy focus on increasing mid-density housing options throughout the GTA is important," said Jason Mercer, TREB's Director of Market Analysis.