■This Month in Real Estate | JULY 2018

■Market Watch | July, 2018

GTA REALTORS® Release June Stats

July 5, 2018 -- Toronto Real Estate Board President Garry Bhaura, in his first market release as TREB President, is pleased to announce some positive signs with respect to the housing market.

Greater Toronto Area REALTORS® reported 8,082 home sales through TREB's MLS® System in June 2018 – up 2.4 per cent compared to the low June 2017 result. After preliminary seasonal adjustment, sales were also up 17.6 per cent on a monthly basis between May 2018 and June 2018, continuing the trend of somewhat volatile month-over-month changes over the past year as home buyers reacted to various policy changes impacting the market.

"Home ownership has proven to be a positive long-term investment. After some adjustment to the Fair Housing Plan, the new Office of The Superintendent of Financial Institutions (OSFI) stress test requirement and generally higher borrowing costs, home buyers are starting to move back into the market, with sales trending up from last year's lows. Market conditions appear to be tightening, with sales accounting for a greater share of listings, as new listings have dropped compared to last year," said Mr. Bhaura.

The average selling price edged up by two per cent on a year-over-year basis to $807,871 in June 2018. After preliminary seasonal adjustment, the average selling price was also up by 3.3 per cent month-over-month between May 2018 and June 2018. The MLS® Home Price Index (HPI) was down by 4.8 per cent on a year-over-year basis, but remained basically flat month-over-month. The difference in the year-over-year rates of change between the average price and the MLS® HPI was likely due, at least in part, to a change in the mix of properties sold in June 2018 compared to June 2017, with low-rise home types accounting for a greater share of sales in June 2018.

"The expectation is to see improvement in sales over the next year. Over the same period, however, it is likely that issues surrounding the supply of listings will persist. This suggests that competition between buyers could increase, exerting increased upward pressure on home prices. With a new provincial government in place and municipal elections on the horizon, housing supply should be top-of-mind for policy makers," said Jason Mercer, TREB's Director of Market Analysis and Service Channels.

■This Month in Real Estate | JUNE 2018

■Market Watch | June, 2018

GTA REALTORS® Release May Stats

June 4, 2018 -- Greater Toronto Area REALTORS® reported 7,834 sales through TREB's MLS® System in May 2018. This result was down by 22.2 per cent compared to May 2017. While the number of sales was down year-over-year, the annual rate of decline was less than reported in February, March and April, when sales were down by more than 30 per cent. On a month-over-month basis, seasonally adjusted May sales were basically flat compared to April.

Supply of homes available for sale continued to be an issue. New listings were down by 26.2 per cent. The fact that new listings were down by more than sales in comparison to last year means that competition increased between buyers. Recent polling conducted by Ipsos for TREB suggests that listing intentions are down markedly since the fall.

"Home ownership remains a sound long-term investment. Unfortunately, many home buyers are still finding it difficult find a home that meets their needs. In a recent Canadian Centre for Economic Analysis study undertaken for the Toronto Real Estate Board, it was found that many people are over-housed in Ontario, with over five million extra bedrooms. These people don't list their homes for sale, because they feel there are no alternative housing types for them to move into. Policy makers need to focus more on the 'missing middle' – home types that bridge the gap between detached houses and condominium apartments," said Mr. Syrianos.

The MLS® Home Price Index (HPI) Composite Benchmark was down by 5.4 per cent year-over-year. The average selling price for all home types combined was down by 6.6 per cent to $805,320. On a seasonally adjusted basis, the average selling price was up by 1.1 per cent compared to April 2018.

"Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019. There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth. In the City of Toronto, for example, average selling prices were at or above average listing prices for all major home types in May," said Jason Mercer, TREB's Director of Market Analysis.

Exciting Upcoming Release, “Sugar Wharf Condominiums” by Menkes

Did you know…
TORONTO’S INDOOR PATH PEDESTRIAN SYSTEM IS THE WORLD’S LARGEST UNDERGROUND SHOPPING COMPLEX.

DOWNTOWN WATERFRONT WILL SOON BE HOME TO NEW APPROACHES, TECHNOLOGY AND INNOVATIVE SOLUTIONS.

SUGAR WHARF WILL BE PATH-CONNECTED AND THE LARGEST MIXED-USE DEVELOPMENT ON THE TORONTO WATERFRONT.

Contact me today (direct: 416-875-0561) for details including floor plans and an updated price list!

PATH AT GLANCE

1,200 SHOPS AND SERVICES

200,000 COMMUTERS DAILY

30 KM PEDESTRIAN NETWORK

6 SUBWAY STATIONS CONNECTED

BY FOOT

CIBC SQUARE: 7 MINUTES
UNION STATION: 9 MINUTES
AIR CANADA CENTRE: 13 MINUTES
HARBOURFRONT CENTRE: 15 MINUTES

Bitter winds and harsh climates are an inescapable fact of Canadian living. And when the cold is a predominate part of life, connectivity becomes a much sought-after luxury. Perhaps more than ever before, people are looking to invest in communities where everything they need comes with convenience – sans slush and cutting wind. Enter Toronto’s indoor PATH pedestrian system – the world’s largest underground shopping complex. On cold winter days you can walk to work, do your banking, visit the doctor and even see a movie without ever having to set one foot outside.

This 30-kilometre network, rivaling West Edmonton Mall in size, includes 1,200 shops and services, restaurants, and endless entertainment; the epitome of convenient urban living. The PATH is truly the heart of Toronto’s financial and entertainment districts, with connections to 80 buildings, 6 downtown subway stations, 9 hotels and tourist destinations like the Air Canada Centre, Metro Toronto Convention Centre, Toronto Eaton Centre shopping centre, and CN Tower.

As Toronto continues to thrive, its global appeal is helping it attract more than 100,000 new residents per year, and many of these people want to work and live downtown. Given this rapid growth, it’s no wonder that the world’s largest underground city is about to get even bigger as well. As part of the new Sugar Wharf community by Menkes, the PATH network is set to expand east of Yonge Street, into the downtown waterfront’s South Innovation District.

Menkes is reimagining Toronto’s Downtown Waterfront with Sugar Wharf Condominiums, part of an 11.5-acre community that will include luxury residences, offices, restaurants and shops, a two-acre park, and new school. Once complete, Sugar Wharf will be the largest mixed-use development on the Toronto Waterfront; home to 7,500 residents and 4,000 office workers.

The comprehensive project aims to seamlessly connect residents and office workers to all parts of the downtown core through the PATH, adding to the 5,000 people who already work in the PATH and over 200,000 commuters that pass through it daily. The PATH also provides access to Union Station, the largest transit hub in the Greater Toronto Area, with connections to the TTC subway, GO Train, Via Rail, and the UP (Union Pearson) Express. Residents living at Sugar Wharf on the PATH will be able to take advantage of the UP Express to travel to Pearson International Airport in a quick 25-minute ride. Traveling to your dream tropical destination during the winter months will be easier than ever before. Imagine being able to wear shorts and a t-shirt from home right up until the moment you board your flight without ever putting on your 10-pound winter jacket!

With Sugar Wharf’s PATH extension, it will be possible to walk indoors from the waterfront, all the way to Toronto’s world class Financial District. Equally connected to the city as it is to nature, Sugar Wharf will revolutionize how Torontonians live, work and play.

REFERENCE: MENKES ADVERTORIAL MAY 18 2018

■This Month in Real Estate | MAY 2018

■Condo & Rental Market Report | Q1 2018

Condo Market Report

Strong Price Growth Continues in Condo Segment

April 16, 2018 -- Toronto Real Estate Board President Tim Syrianos announced that the average selling price for condominium apartments sold through TREB's MLS® System was up by nine per cent year-over-year to $533,447 in the first quarter of 2018.

While the number of condominium apartment sales reported by Greater Toronto Area REALTORS® in the first quarter was down by 29.7 per cent year-over-year to 5,084, so too were the number of new listings, which were down by 11.1 per cent annually to 8,030.

"Seller's market conditions for condominium apartments remained firmly in place in the first quarter of 2018. Strong competition between buyers underpinned price growth well above the rate of inflation. We expect the condo market segment to remain strong through the remainder of 2018 and over the longer term, as buyers continue to see ownership housing as a quality long-term investment," said Mr. Syrianos.

Inventory levels for condominium apartments in the first quarter of 2018 were above the record lows experienced during the first three months of 2017. However, with months of inventory continuing to trend between 1.5 and 2.0 months, market conditions remain very tight from a historic perspective.

"The condominium apartment market segment continues to have the lowest price point on average compared to other major low-rise home types. It stands to reason that condos remain popular with first-time buyers. Strong demand relative to supply will see this segment perform well from a pricing standpoint for the remainder of 2018 and beyond," said Jason Mercer, TREB's Director of Market Analysis.


Rental Market Report

Above-Inflation Rent Increases Continue in Q1 2018

April 16, 2018 – Toronto Real Estate Board President Tim Syrianos announced that average rents for one-bedroom and two-bedroom condominium apartment rental units were up well above the rate of inflation on a year-over-year basis in the first quarter of 2018. The average rent for one-bedroom condominium apartments in the TREB market area was up 11.4 per cent on an annual basis to $1,995. The average two-bedroom condominium apartment rent was up by 9.1 per cent over the same time period to $2,653. “The GTA continues to be one of the most desirable locations to live in the world and will remain so over the long term. As people have moved to the region to take advantage of quality employment opportunities, rental demand has remained strong. The result has been heightened competition between renters, in an ultra-low vacancy environment, and double-digit rent growth in some market segments,” said Mr. Syrianos. The number of condominium apartments listed during the first quarter was down 11.8 per cent compared to Q1 2017. The total number of units leased was down 7.5 per cent. With a vacancy rate hovering at one percent for condominium apartments, there has been less supply available to would-be renters, which has resulted in fewer lease agreements being signed. “The low-vacancy, high rent growth situation that has unfolded in the GTA over the past year will be further exacerbated by the rent control provisions contained in the Fair Housing Plan. Some investors who, previously would have considered investing in rental units may now look elsewhere for returns on their money. This does not bode well for a sustained increase in rental supply over the long term,” said Jason Mercer, TREB’s Director of Market Analysis.