GTA Market Update December 2009

GTA sales and price recovery continues

We continue to see huge gains vs last year in both unit sales, +104%, and in the average selling price, +14, demonstrating the strength of the recovery in the Greater Toronto Area marketplace.

While these increases may look strange at first glance, but keep in mind that we are comparing against an abnormally weak period of time last year. The increases are spread across all housing types, reflecting both the pent up demand for housing, as well as higher confidence levels in our economy.

Single Family Price Breakdown – November 2009 vs 2008

Dwelling Type
Median Price – November ‘09
% change

Detached
$445,000
+17

Semi-detached
$359,000
+11

Condo Apartments
$270,000
+19

Condo Townhouses
$268,500
+9

Attached/Row Townhouses
$331,000
+12


There are still a lot of buyers waiting in the wings at all price levels. Listings continue to run well below historical levels and many buyers are having difficulty locating their next dream home. This is a very positive sign for the market as we look forward to next year’s spring market.

Historically, we are presently moving into a slower period of the year as both buyers and sellers become preoccupied with seasonal holiday events and winter vacations. This can be a great time to ramp up your home search as there may not be as much competitive pressure when you do find that wonderful new home. .

Please have a look at the sales information by area below. The strength that we are enjoying is widespread throughout the GTA region.

Contact me if you would like at customized look at your own neighborhood.

Sincerely,

Armand Gilks


Summary of November Sales and Average Prices by Area

November 2009 vs 2008
Sales
%chge
Average Price
% chge


City of Toronto ("416")

3,212
+110%

$450,079
+15%


Rest of GTA ("905")
4,234
+100%

$394,474
+12%

Source: Toronto Real Estate Board



District

Area
Sales % chge Nov ’09 vs Nov ‘08
Avge Selling Price Nov 2009
Price %chge Nov’09 vs Nov ‘08

Total GTA
+104%
$418,460
+15%

C01 Downtown
+134%
$423,359
+22%

C02 Annex/Bloor W, etc
+92%
$755,715
+16%

C03 Midtown
+50%
$747,877
-25%

C04 North Toronto
+158%
$773,119
+35%

C06 Dublin Heights/Willowdale
+108%
$510,510
+/-0%

C08 Cabbagetown/Downtown
+123%
$384,226
+17%

C09 Rosedale
+215%
$1,096,266
-35%

C10 Davisville/ L. Park
+77%
$667,209
+22%

C11 Leaside/Old East York
+67%
$632,785
+43%

C12 Bayview/York Mills
+175%
$1,390,168
+36%

E01 Riverdale/Leslieville
+79%
$481,890
+9%

E02 The Beach/Leslieville
+48%
$574,949
+23%

E03 Danforth/East York
+98%
$390,381
+9%

Market Update – October 1, 2009

Average selling price +10% in the GTA

Many, if not all of you have likely seen the headlines this week about the ongoing strong recovery of the Toronto real estate market. Sales have continued to post excellent gains from June right through to September when unit sales were up 28% in the GTA and +31% in the central 416 area. The changes by area are shown in the table below.

As in the previous few months, sales increases were strongest in the lower price ranges and in condominiums. We are also now seeing increasing, and steady strength in the market above one million dollars.

While sales are up, the available listings in September were -42% vs the levels of last September. This is definitely creating a seller’s market and resulting in a lot of ‘multiple offers’.

If you are looking to sell, this is an ideal time to take advantage of this very strong market.
Give me a call to talk about selling your home.

Sincerely,

Armand


Summary of September Sales and Average Prices by Area

September 2009 vs 2008
Sales
%chge
Average Price
% chge

City of Toronto ("416")
3,341
+31%
$437,182
+11%


Rest of GTA ("905")
4,855
+25%
$386,022
+10%

Total GTA
8,195
+28%
$406,871
+10%

Source: Toronto Real Estate Board



District

Area
Sales % chge Sept ’09 vs Sept ‘08
Avge Selling Price Sept 2009
Price %chgeSeptg’09 vs Sept ‘08

Total GTA
+28
$406,871
+10%

C01
Downtown
+38%
$406,163
+13%

C02
Annex/Bloor W, etc
+47%
$790,425
+29%

C03
Midtown
+3%
$577,839
-13%

C04
North Toronto
+8%
$767,426
+25%

C08
Cabbagetown/D’town
+56%
$374,572
+2%

C09
Rosedale
+91%
$1,048,314
+20%

C10
Davisville/ L. Park
+52%
$701,242
+13%

C11
Leaside/Old East York
+95%
$608,012
+/-0%

C12
Bayview/York Mills
+61%
$1,171,743
+1%

E01
Riverdale/Leslieville
+49%
$474,846
+8%

E02
The Beach/Leslieville
-7%
$573,495
+4%

E03
Danforth/East York
+4%
$401,036
+16%

September 2009 Market Update

The Summer strength continues into August.

In August 2009, Greater Toronto REALTORS® reported 8,035 sales, up 27% per cent from August 2008. The average price for August transactions was $387,921 – up by six per cent compared to the same month last year.

"The increase in demand for existing homes has been widespread across different housing types and price ranges," said TREB President Tom Lebour. "This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a lifestyle change."

"We have heard more positive economic news lately. The improved housing market has played a key role,” explained Jason Mercer, TREB's Senior Manager of Market Analysis. "Home sales have helped other sectors of the economy through home buyers’ spending on things like financial and legal services, moving, renovations and home furnishings."

Available listings are down significantly as a result of the solid sales activity in each of the last 3 months. There are a lot of buyers in the marketplace who are still looking for their next home and September will be an ideal time to list your home if you are looking to sell. Call me for a customized update for your neighborhood.


Summary of August Sales and Average Prices by Area

August 2009 vs 2008
Sales
%chge
Average Price
% chge

City of Toronto ("416")
3,109
+25%
$402,246
+6%


Rest of GTA ("905")
4,926
+27%
$378,880
+65

Total GTA
8,035
+27%
$387,921
+6%

Source: Toronto Real Estate Board



District

Area
Sales % chge Aug ’09 vs Aug ‘08
Avge Selling Price Aug 2009
Price %chge Aug’09 vs Aug ‘08

C01
Downtown
+25%
$375,410
+4%

C02
Annex/Bloor W, etc
+54%
$624,757
-4%

C03
Midtown
+3%
$670,014
-7%

C04
North Toronto
+17%
$580,496
+3%

C08
Cabbagetown/D’town
-6%
$367,388
+5%

C09
Rosedale
-7%
$823,200
+12%

C10
Davisville/ L. Park
+58%
$775,807
+32%

C11
Leaside/Old East York
+33%
$419,920
+11%

C12
Bayview/York Mills
+75%
$1,308,567
+13%

E01
Riverdale/Leslieville
+19%
$445,776
+/-0%

E02
The Beach/Leslieville
+2%
$478,396
-6%

E03
Danforth/East York
+55%
$358,919
+6%

August 2009 Market Update

July sales very strong in the GTA, following a record setting June.

TORONTO, August 1, 2009 - In the month of July, Greater Toronto REALTORS®
reported 9,967 sales up 28 per cent compared to July 2008.

The average price for these transactions was up six per cent year-over-year to $395,414.

The resurgence in home ownership demand experienced in the spring has continued into the
Summer as home buyers continued to take advantage affordable market conditions. The cost of borrowing has been a key factor, as well as a more positive attitude among buyers about the economy.

Summary of July Sales and Average Price

July 2009 vs 2008

Sales %chge Average Price % chge

City of Toronto ("416") 3,880 +24% $421,110 +7%

Rest of GTA ("905") 6,087 +31% $379,035 +6%

GTA 9,967 +28% $395,414 +6%

Source: Toronto Real Estate Board

June also a record high.

This follows June when sale were also +27% vs a year ago. Many of the buyers that we are seeing now are first time buyers or those who are trading up from a condo into the freehold housing market. As a result of this, we are seeing the most activity in the mid price range and are just starting to see some increases in activity at the higher price points above one million dollars.

Details by area for July are shown in the following table.


District

Area
Sales % chge July ’09 vs July ‘08
Avge Selling Price July 2009
Price %chge July ’09 vs July ‘08

Total GTA
+28
$395,414
+6%

C01
Downtown
+35%
$355,431
-4%

C02
Annex/Bloor W, etc
-5%
$596,979
-12%

C03
Midtown
+89%
$668,776
-12%

C04
North Toronto
+40%
$780,943
+13%

C08
Cabbagetown/D’town
+17%
$355,845
+1%

C09
Rosedale
+43%
$979,174
+31%

C10
Davisville/ L. Park
+48%
$733,849
+22%

C11
Leaside/Old East York
+7%
$491,110
+6%

C12
Bayview/York Mills
+59%
$1,418,007
-8%

E01
Riverdale/Leslieville
+/-0%
$463,248
+7%

E02
The Beach/Leslieville
+9%
$514,958
+8%

E03
Danforth/East York
-30%
$377,489
+4%



Overall, the results are very encouraging is, however, there is a shortage of listings and a lot of buyers are still waiting for that right house to come available.

If you would like an update on your specific neighborhood, just let me know and I will prepare a custom package for you.

Sincerely,

Armand

Feb March 2009 Market Update

There is lots of uncertainty out there

The last few weeks have seen a lot of new buyers coming out to look at open houses, both first time buyers as well as people considering trading up or down from their present home. Many, if not most, are just starting their research into the market and are not ready to act just yet.

The main holdup I am hearing from people is a lack certainty about what is going to happen in the economy. When you are not comfortable about the future it’s very difficult to make such a major commitment such as buying a new home.

The encouraging thing about this activity is that it is showing that there is a lot of demand in the market that is waiting for the right signals to take action. This bodes very well for the state of the real estate market in Toronto as the spring market develops.

Once we start seeing a few positive signs we will definitely be seeing an increase in buyer activity.We are already seeing some signs of recovering at our sales office, as our weekly sales for the last half of February have been running ahead of last year and we have seen five sales in the last two weeks that attracted multiple offers.

The recovery in our area has been centered largely in the Leaside and Davisville neighborhoods as the following numbers show.Unit sales and average price change

– Feb 2009 vs Feb 2008

Leaside - Unit sales were identical to last year.
Average sale price -12%

Davisville – Unit sales +/-0%,
Average price -8%

In the Central District, we continued to see sales and prices well below last year’s levels, but versus last month, January 2009, we saw a strong surge of activity.

Sales in Central Toronto increased by 64% and the average price in February, while -5% vs last year, showed a +7% increase from January to an average of $473,971.

The reality, at this point, is that there are some very well priced houses available. If you are thinking about trading up, this could be an ideal time to take a look at what’s available.

Mortgage rates are fantastic and there are a number of homeowner incentives included in the latest Federal Budget that are discussed later in this newsletter.Every neighborhood and every price range is different.

Call me if you would like a custom report on your own neighborhood.

Home ownership tax benefits

The Federal Government is now offering a lot of incentives to renovate, improve or even buy a house.

The Federal Budget 2009 introduced several incentives to get Canadians spending by buying a first time home, or renovating the one they are already in. But do the government measures go far enough and will they help to spur the real estate market?“At first blush, the incentives related to housing seem very positive,” says 2008 OREA President, Gerry Weir. “However, we shouldn’t expect to see these programs stimulate the economy immediately like people hope they will. We are probably looking at two to three years before we see the benefits.”

As for the 2009 budget in general, Weir says the billions of dollars the government plans to spend on municipal infrastructure will likely do volumes to create jobs and boost the economy.

“We are grateful that the government recognizes that the housing industry moves the economy, but we must have consumer confidence. Job creation and low interest rates will help people – especially first time buyers – feel secure about buying a home,” says Weir. “Then we will also see people spending more on renovations.”RRSP Home Buyers Plan changed

The changes to the RRSP Home Buyers Plan introduced in the new budget are not only good for potential home buyers, they are also seen as a victory for OREA and CREA. “It’s gratifying to see that our lobbying efforts at the national level for enhancements to this program have paid off,” says Weir.The 2009 budget increases the withdrawal limit for the RRSP Home Buyers Plan to $25,000 from $20,000 providing first-time home buyers with additional access to savings to purchase or build a home.

The eligibility and repayment rules remain pretty much the same. The money withdrawn from the RRSP must be repaid over a period of no more than 15 years to retain its tax deferred status. The repayment period starts the second year following the year the first withdrawals were made. If a participant pays less than the scheduled annual payments, the amount that they don’t repay must be reported as income on their tax return for that year.

For example, in October 2009 a first time buyer withdraws $24,000 from his or her RRSP to finance the purchase of a home. Their first annual repayment of $1,600 ($24,000 divided by 15 years) is due by December 31, 2011.

Buyers get a tax creditFor 2009 and subsequent years, the budget also introduced a new non-refundable tax credit to help first-time home buyers with some of their closing costs. This Home Buyer Tax Credit (HBTC) will provide up to $750 in tax relief on the purchase of a first home. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000.

For 2009, the credit will be $750.To qualify for the HBTC, an individual must purchase a qualifying home and neither the homebuyer or the homebuyer’s spouse or common-law partner can have owned and lived in another home in the year of purchase or any of the four preceding years.A qualifying home is a housing unit located in Canada including existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify.

A share in a co-operative housing corporation that entitles the individual to possess and gives an equity interest in a housing unit also qualifies. However, a share that only provides a right to tenancy in the housing unit does not qualify.

Grants for eco-friendly upgradesThe ecoENERGY Retrofit program provides home and property owners with grants of up to $5,000 to offset the costs of making energy-efficiency improvements. Grants apply to a variety of measures that reduce energy consumption – anything from increasing insulation to upgrading a furnace. Building on the success of the existing program,

Budget 2009 provides an additional $300 million over two years to the ecoENERGY Retrofit program to support an estimated 200,000 additional home retrofits.Home Renovation Tax CreditThe proposed Home Renovation Tax Credit (HRTC) will provide a temporary 15 per cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010.

The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.For more information on all of the home ownership and housing related stimulus in Budget 2009, go to http://www.budget.gc.ca/2009/plan/bpa5a-eng.asp#Personal or to the Canada Revenue Agency Web site at www.cra-arc.gc.ca and search for “Home Buyers Plan.”What’s eligible and what’s not for the Home Renovation Tax Credit?

The federal government hopes the Home Renovation Tax Credit (HRTC) will get Canadians spending now to help create jobs in industries typically hurt by an economic downturn. Now through January 31, 2010, homeowners can claim a tax credit for 15 per cent of renovation expenses between $1,000 and $10,000. Here’s a sample of what qualifies under the program and what does not.Eligible

renovating a kitchen, bathroom or basement

new carpet or hardwood floors

building an addition, deck, fence or retaining wall

a new furnace or water heater

painting the interior or exterior of a house

resurfacing a driveway

laying new sod Ineligible

purchase of furniture and appliances (e.g. refrigerator, stove, and couch)

purchase of tools

carpet cleaning

maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)