Category Archives: Real Estate News

905 houses

905 Housing Market Sales Stable in January

By: Zoocasa

All property types posted price gains in the 905 region this January, according to the latest report from the Toronto Real Estate Board (TREB).

Detached house prices rose 0.9 per cent to $883,000, semi-detached 1.8 per cent to $650,750, townhouses 2.1 per cent to $600,500 and condos 8.2 per cent to $456,860.

Condos Continue to Lead the Market

Condo prices outpacing single-family homes was also at trend seen in the 416, and is likely to continue into 2019. Because of the new stress test implemented by the federal bank regulator last January, prospective buyers have likely found their borrowing reduced and are now looking at less expensive market segments.

“Given housing affordability concerns in the GTA, especially as it relates to mortgage qualification standards, we have seen tighter market conditions and stronger price growth associated with higher density low-rise home types and condominium apartments, which have lower average selling prices compared to single-detached homes,” said Jason Mercer,  director of market analysis at TREB.

Home Values Vary Throughout Region

The 905 is a wide area and all real estate is local. All regions posted year-over-year gains except for Simcoe County and Durham Region, which slipped a fraction. Within those larger regions, however, each cities saw varying price changes.

Halton Region as a whole edged up a 3 per cent to $854,750, for example, but  Burlington real estate declined, dropping 5.5 per cent to $ 726, 900 while Oakville real estate, also in Halton, grew 3.8 per cent to $1,050,000.

Meanwhile, Peel Region grew almost 5 per cent to $696,700 as a whole, while Caledon houses plunged 6.7 per cent to $816,150 and neighbouring Mississauga real estate  grew 11.7 per cent to $705,500.

However, prospective buyers and sellers should be wary of statistics — although they represent the overall market, they do not necessarily reflect their specific neighbourhood.

Prices across all TREB’S regions edged up 1.7 per cent to an average of  $748,330 year-over-year and TREB forecasts continued growth throughout the year.

“It is encouraging to see the slight increase in January transactions on a year-over-year basis, even with the inclement weather experienced in the GTA region during the last week of the month” said TREB President Garry Bhaura. “The fact that the number of transactions edged upwards is in line with TREB’s forecast for higher sales in calendar year 2019.”

toronto-home-sales-jan-2019-treb-zoocasa is a real estate company that combines online search tools and a full-service brokerage to empower Canadians to buy or sell their homes faster, easier and more successfully. Home buyers can browse homes across Canada on the website or the free iOS app.

December TREB report

GTA Home Sales Decline 16% in 2018: December TREB Report

By: Zoocasa

The festive season wrapped up a quiet year for the real estate market in the Greater Toronto Area, as reported by the Toronto Real Estate Board.

The latest report shows a 31.5% decrease in new listings in the GTA compared to December of last year, with 4,308 units on the market and a total of 3,781 homes sold. Compared to November, the month suffered a 39% fall in activity and an overall 22.5% decline in sales since a year ago. Market conditions during the month reflected a busier time for sellers with 87% of all homes listed sold.

Prices in the GTA were generally unaffected and averaged at $750,180 by the end of December, with a slight increase of 2.1% year over year. In the 905 markets, sales were down 21%, with 2,308 units sold and prices increasing at 1.5%, averaging at $742,237. In the 416 market, sales fell 24%, with 1,473 units sold and prices increasing 2.9%, averaging at $762,627.

Increasing Preference for Toronto Condos in 2018

Condos for sale in North York and the surrounding areas of Toronto remained in high-demand throughout the year, posting a 7.8% price increase, and also making up a good portion of sales in the 905 markets. Tighter supply conditions have pushed sellers to hold off on selling their homes, or omit it altogether for 2018, limiting the selection on the market and influencing buyer trends.

TREB’s Director of Market Analysis and Service Channels, Jason Mercer, states “After spiking in 2017, new listings receded markedly in 2018. In many neighbourhoods, despite fewer sales from a historic perspective, some buyers still struggled to find a home meeting their needs,” he said. “The result was a resumption of a moderate year-over-year pace of home price growth in the second half of the year. Price growth was the strongest for less expensive home types, as many buyers sought more affordable home ownership options.”

Drop in New Listings Contribute to Sales Decline

As a whole, 2018 saw a 12.7% decline in new listings, amounting to 155,823 homes on the market, and contributing to the year-over-year 16.1% sales decline with 77,426 homes sold. Overall, homes in the GTA averaged at $787,300, a 4.3% price decrease compared to last year. Sales in the 905 markets were down 16.7%, influencing the average price to fall 7.1% to $757,086. Just outside the city, Etobicoke condos for sale fared better, although not by much. 416 condos averaged at $593,366 in 2018, an 8.7% boost in prices, while sales fell 23.9% to 848 units.

Effects of the New Mortgage Stress Test

The new federal mortgage rules introduced in January, tied in with increasing national interest rates, have restricted potential buyers from entering the market during the first half of the year. TREB President Garry Bhaura states, “Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to sidelines to assess their housing options. With this said, it is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint.”


Ontario sellers markets

Is Ontario Almost Entirely a Sellers’ Market?

By: Zoocasa

Ontario is either almost entirely advantaged toward the seller, or balanced, according to the latest data from Zoocasa.

That means the sales-to-new listings ratio (SLNR) exceeds 60 per cent in 12 Ontarian cities. A sales-to-listings ratio of 40 to 60 per cent is considered balanced, and below that range it becomes a buyers’ market.

“While the SNLR doesn’t always reflect how affordable a market is, it can offer valuable hints on how a market has changed over the long or short term, and whether or not it’s an advantageous time to list or purchase a home,” writes Penelope Graham, managing editor at Zoocasa.
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2019 Housing Outlook Survey

Canadian Homeowners Still Feel Optimistic About Market: SURVEY

By: Zoocasa

The Canadian real estate market has been rapidly changing over the course of this year. There are new provincial policies, taxes, and tougher federal mortgage criteria that have reduced housing affordability and slowed sales.

This means that buyers and sellers looking for, say, Calgary homes for sale or browsing MLS listings in Toronto must now adapt to the quieter markets than ones seen in previous years.

Despite all this change, however, 2018 has also provided some much-needed stability by cooling rampant urban centres such as the Vancouver real estate market and Toronto condo market back down to more historical levels.
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Toronto November TREB report

Toronto Market Conditions Tighten This November

By: Zoocasa

Supply issues have plagued the Toronto real estate market for years, and the Toronto Real Estate Board (TREB) cites it as one of the primary reasons home prices continue their seemingly irrepressible growth.

Last November saw a surge of inventory – 14,349 new listings amid a rush to capitalize on the buying frenzy resulting from the new mortgage lending rules hitting the province in January.

This increase in properties dampened prices from November 2016 by 2 per cent.

But this November new listings fell over 26 per cent to 10,534 – almost exactly back to levels from November 2016. At the same time, sales fell only 14.7 per cent to 6,251.
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Ontario Land Transfer Tax

The Best and Worst Cities in Ontario for Land Transfer Tax

By: Zoocasa

As your home purchase closing draws nearer, most of the stress and anxiety dissipates as you take the final steps towards homeownership. The same can’t be said for your wallet, however, as you’re then faced with numerous closing costs that need to be paid before your transaction is complete, with the largest being land transfer tax.

This tax, which is charged by the province, (with the exception of Ontario where the City of Toronto has its own additional tax), is determined based on the total purchase price of the property, and unlike the mortgage, it must be paid in cash.

Tax Amount Ranges by Average Home Price

Since land transfer tax is so intertwined with the home property price, it will increase and decrease alongside average home prices. As a result, land transfer tax will vary across Ontario’s major housing markets. For example, a buyer in the city of Toronto will be faced with an LTT of $27,521—which adds up to an additional 3.2% of the total home price, based on the September 2018 average of $864,275.
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Toronto October numbers

Housing Prices Set to Rise in Toronto, Reveals TREB’s October Report

By: Zoocasa

The shaky first half of 2018 is officially over, with home sales and prices both edging upwards for the fifth month in a row this October, according to the Toronto Real Estate Board (TREB).

TREB reported 7,492 sales through MLS in October 2018 in the Greater Toronto Area, a 6-per-cent increase year over year. At the same time. The average property price rose 3.5 per cent to $807,340.
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Toronto real estate September

GTA Housing Market Stabilizes this September

By: Zoocasa

Both home sales and prices are stable this September and slightly higher year over year in the Greater Toronto Housing market.

The Toronto Real Estate Board (TREB) recently announced that sales were up 1.9 per cent to 6,455 transactions while the average selling price for September 2018 was up 2.9 per cent year over year to $796,786.

“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,” said TREB president Garry Bhaura.
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Cheaper Ontario Rents

Where Are Ontario’s Most and Least Affordable Housing Markets?

By: Zoocasa

Ontario is often thought to be the most expensive province for real estate – a perception created from the fact that it’s home to the Toronto housing market, one of the hottest in the nation.

Interestingly enough, according to recent data compiled by Zoocasa, Toronto doesn’t hold the top spot for Ontario’s most unaffordable housing market. That would actually be Richmond Hill, a residential Greater Toronto Area suburb where locals earning the median household income of $88,535—$47,962 short of the income required—would have some difficulty purchasing a home at the average price of $999,311. Comparably, a Torontonian earning the median household income of $ 65,829 would find themselves $41,282 short of the income required to purchase a home in 416.
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Toronto Property Tax

Property Tax Across Canadian Markets: How Toronto Compares

By: Zoocasa

The Canadian housing market tells different tales depending on the city; property values, and the economic fundamentals that support them, vary based on the municipality or the province in question.

While housing prices can be very diverse, so too can home ownership costs. For instance, the land transfer tax home buyers pay when they close on a property can range by as much as $20,000 depending on the market. An interesting thing to note is that the disparity can similarly be found across the nation according to a study done by Zoocasa, which compared the property tax rates in 25 major municipalities across Canada.
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