September Rounds Out a Strong Third Quarter

October 5, 2011 -- Greater Toronto REALTORS® reported 7,658 transactions through the TorontoMLS® system in September – a 25 per cent increase over September 2010. Sales during the first three quarters of 2011 amounted to 70,588, representing a 2.6 per cent increase compared to the first nine months of 2010.

"We have experienced strong growth in sales so far this year, with a much more active summer compared to 2010. However, while sales have been strong, we have continued to experience a shortage of listings, resulting in more competition between home buyers," said Toronto Real Estate Board President Richard Silver.

"Over the past few months, the listing situation has started to improve, so we expect home buyers will have more homes to choose from in the months ahead." With annual growth in sales (+25 per cent) outstripping annual growth in new listings (+15 per cent) in September, market conditions became tighter and the average selling price continued to grow by close to 10 per cent on a year-over-year basis.

"Strong price growth through the first nine months of the year was mitigated to a great degree by low interest rates and rising incomes," said the Toronto Real Estate Board's Senior Manager of Market Analysis Jason Mercer. "As buyers continue to take advantage of the affordable home ownership options in the GTA, we remain on pace for the second best year for sales under the current TREB market area."

The Canadian Real Estate Association has wisely avoided adding chaos to uncertainty as the real estate market hits the doldrums. Faced with either opening up its Multiple Listing Service or having a long and messy fight with the federal Competition Bureau, CREA chose the safe route.

The main concern of the Competition Bureau was that the MLS was too restrictive, and now the public will have more access to the service. Though the system will continue to be restricted to use by licenced realtors, the public will be able to hire a realtor to simply post a private sale.

This is a good settlement and seems to be satisfactory to Melanie Aitken, the Commissioner of Competition. And it ought to be satisfactory to realtors all over Canada. Realtors work hard and serve Canadians well in executing what is one of the most important financial transactions a person can do.

 As per Toronto Real Estate Board, Real estate affected by market volatility

There were 3,214 sales through the TorontoMLS® system during the first 14 days of August, representing more than a 22.5 per cent increase compared to the same period in August 2010. Year-to-date sales through the 14th of August were all but caught up to last year’s total – down by half a per cent compared to 2010.

“The unsettled situation in financial markets over the past few weeks did not appear to sap the confidence of GTA home buyers during the first half of August,” said Toronto Real Estate Board President Richard Silver. “Revised forecasts for future Bank of Canada interest rate decisions coupled with the recent announcement by the US Federal Reserve, suggest that interest rate hikes in Canada are on hold at least until sometime in 2012. This is a positive for affordability and should help sustain buyer confidence moving forward.”

The average selling price was up by almost seven percent annually during the first 14 days of August to $440,150.

“The rate of price growth reported for the first two weeks of August continued to point to sellers’ market conditions in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “However, it should be noted that new listings grew at a slightly greater pace than sales. A better supplied market in the second half of 2011 will result in prices growing at a more sustainable pace.”

Land Transfer Tax in Ontario

Purchasers in Ontario add Land Transfer Taxes to their list of closing cost Land transfer taxes are levied on properties that are changing hands, are the responsibility of the purchaser.

Many provinces have multi-tiered taxation systems that can prove complicated. If you purchase a property for $260,000 in Ontario, for example, 0.5 per cent is charged on the first $55,000, 1 per cent is charged on $55,000 - $250,000, while the $250,000 - $400,000 range is taxed at 1.5 per cent. Your total tax bill? $2,375.00

Ontario's Land Transfer Tax:

• Up to $55,000 X 0.5 % of total property value
• From $55,000 to $250,000 X 1 % of total property value, less $275
• From $250,000 to $400,000 X 1.5 % of total property value, less $1525
• From $400,000 up X 2 % of total property value, less $ 3525

Additional New Toronto's Land Transfer Tax:

Toronto home buyers will pay additional new tax rates (on purchase agreements signed after Dec 31, 2007 and close after Feb 1, 2008)

• 0.5% on first $55,000,
• 1% on next $345,000, and
• 2% on portion over $400,000

Land Transfer Tax Rebate
 

Land transfer Tax rebate is a permanent program allowing a rebate of provincial land transfer tax otherwise payable up to $2000 for all agreement of purchase and sale entered into after March 31, 1999 (being the land transfer tax on a $227,500 home, using above calculation). As of Dec 14, 2007, resale home buyers are eligible for Ontario's new land transfer tax rebate. 

All above information to educate new buyer or investor who like to invest in real estate market in Great Toronto areas. Let me know if you have any question. please, give me your feed back through comments tab. Thanks you.

Toronto sales up 25% over last year

Greater Toronto Realtors reported 3,149 transactions during the first 14 days of September, representing an increase of more than 25% in comparison to the first two weeks of September 2010. New listings over the same period, at 6,890, were up by 14% compared to last year.

“Purchasing and paying for a home over the long term represents the single largest financial commitment most households will make over a lifetime. To make this commitment, households must be confident in their economic prospects,” said Toronto Real Estate Board President Richard Silver. “The fact that sales continued to grow through the first half of September suggests that GTA households remain confident that the economy will remain buoyant.”

The average selling price in the first half of September was $454,194 – an increase of 11 per cent compared to the same period in September 2010. “Strong price growth in the GTA continues to be mitigated by a solid affordability picture. Mortgage rates will remain at or near current levels until the second half of 2012 if not into 2013,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

“In response to strong price growth, more households chose to list their homes for sale in comparison to last August. Growth in listings is expected to continue. Increased choice will result in more sustainable rates of price growth. Please, give your comment.

Housing starts: After moderating progressively since the second quarter of 2010, housing starts have
rebounded in the second quarter of 2011. They are expected to moderate again over the course of the next three quarters. Housing starts are forecast to be 183,200 units for 2011 and 183,900 units for 2012. Resales: Sales of existing homes through the Multiple Listing Service®(MLS®)2 declined in the second quarter of 2011 and are forecast to remain stable in the remaining quarters of 2011. MLS® sales are expected to increase modestly in 2012. Overall, 446,700 sales are forecasted in 2011, followed by 458,000 in 2012. Resale prices: The average MLS® price in the second quarter of 2011
continued to increase but is expected to plateau for the remainder of the year. For 2011, the average MLS® price is forecast to be $367,500 while 2012 will see a modest increase to $372,400.
Provincial Spotlight Ontario and Saskatchewan Housing starts will moderate in all areas of Canada in 2011, with the exception of Ontario and Saskatchewan which will experience a modest increase in housing starts. Alberta and British Columbia: In 2012, growth in housing starts is expected to be strongest in Alberta and British Columbia,

Open Houses are held by listing agents with the objective to promote the property to prospective buyers. The purpose of an Open house is to make the property available to anyone for viewing without prior appointment, subject to proper visitor identification for security.

Some buyers prefer to look for their next home on their own, despite the fact that if the decide to hire a buyer agent they would not be required to pay him/her any real estate commission. It may be mentioned here that according to prevailing real estate practices commission is to be paid by the Seller. Buyer’s primary motivation in buying their next home from an Open House is to save buyer agents commission. They believe that they know what they are looking for and do not need any professional help in determining the suitability or otherwise of their next home and can save this amount by seeking a proportionate discount form the final purchase price.

According to recent statistics more than 90% buyers start their home search on the internet. They can also request showing of any house that they like by calling the listing agent from ‘For Sale’ signs, flyers, and newspaper ads etc. Moreover, they also have the option to walk into any Open Houses to see if they can find a house that they can call a home.

As per Toronto Real Estate Board Residential sale increased by 27% as compare to last year same period moreover price of property also increased by 6%.

As per Toronto Real Estate Board August, 2009 Market report..Residential properties has increased 27% and Priced increased 6% in GTA area. Due to lack of inventory particularly in Mississauga , Milton, Toronto downtown available inventory sell like a hot cake. It is best time indeed for seller and it is a seller market in my opinion. If you are someone like to sell contact me now for free home evaluation. if you have any question call me direct #, email me or post your comments in my blog. 

Thanks,

Irfan Bajwa

416-832-9090