TORONTO, ONTARIO, November 2, 2017 – Toronto Real Estate Board President Tim
Syrianos reported 7,118 residential sales through TREB's MLS® System in October
2017. This result represented an above-average increase between September and
October of almost 12 per cent, pointing to stronger fall market conditions.
On a year-over-year basis, October sales were down compared to 9,715 transactions
in October 2016. Total sales reported through the first 10 months of 2017 amounted
to 80,198 – down from 99,233 for the same time period in 2016.
"Every year we generally see a jump in sales between September and October.
However, this year that increase was more pronounced than usual compared to the
previous ten years. So, while the number of transactions was still down relative to
last year's record pace, it certainly does appear that sales momentum is picking up,"
said Mr. Syrianos.
The MLS® Home Price Index Composite benchmark price was up by 9.7 per cent on
a year-over-year basis in October. Annual rates of price growth were strongest for
townhouses and condominium apartments. The average selling price for October
transactions was $780,104 – up by 2.3 per cent compared to the average of
$762,691 in October 2016.
"The housing market in the GTA has been impacted by a number of policy changes
at the provincial and federal levels. Similar to the track followed in the Greater
Vancouver Area, it appears that the psychological impact of the Fair Housing Plan,
including the tax on foreign buyers, is starting to unwind," said Jason Mercer, TREB's
Director of Market Analysis.
Toronto Real Estate Board
Government Announces Provincial LTT Changes
November 14, 2016 -- The provincial government has announced significant changes to the Provincial Land Transfer Tax (PLTT), including a doubling of the rebate available to first-time home buyers, bringing it in line with the City of Toronto's rebate, and an increase in the PLTT paid on the portion of the price of properties over $2,000,000 to help pay for the increase in the first-time buyer rebate.
The provincial government is proposing to double the maximum rebate for first-time home buyers from $2,000 to $4,000. This change would bring the PLTT rebate in line with the City of Toronto LTT rebate. The real estate industry welcomes this change, which will help to make housing more affordable in the GTA.
The provincial government is proposing to increase the PLTT for homes priced over $2,000,000 by charging 2.5% on the portion of the value above $2,000,000 (currently this portion is charged 2%).
For non-residential properties, the provincial government is proposing to increase the PLTT on the portion of the value above $400,000 to 2% (currently this portion is charged 1.5%).
As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016 would not be subject to the increased rates of tax.
TREB welcomes the increase to the provincial first-time buyer rebate to bring it in line with a similar rebate in the City of Toronto as long overdue. TREB, however, always has concerns with tax increases on property, and governments should be focused on measures to make property ownership in the GTA more affordable, not more expensive.
The provincial government is proposing to restrict eligibility of the first-time home buyer rebate to Canadian citizens and permanent residents, effective January 1, 2017. As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016 would remain eligible for the refund, regardless of citizenship or residency status.
Toronto Real Estate Board
New Down Payment Requirement Starting Feb. 15, 2016
TORONTO, December 12, 2015 – Finance Minister Bill Morneau on Feb.11, 2015 announced changes to the rules for
government-backed mortgage insurance to contain risks in the housing market, reduce taxpayer exposure and
support long-term stability. Effective February 15, 2016, the minimum down payment for new insured mortgages
will increase from 5 per cent to 10 per cent for the portion of the house price above $500,000. The 5 per cent
minimum down payment for properties up to $500,000 remains unchanged.
See below my graphics on the changes and my impact assessment on the housing market.
No Ontario communities outside Toronto to have land transfer tax
TORONTO, December 1, 2015 - There will be no extension of Municipal land transfer
tax beyond Toronto. Toronto has been charging municipal land transfer tax on top
provincial land transfer tax. The Ontario Real Estate Association was arguing against
the additional land transfer tax and as a result this and other consultations by the
Municipal Affairs Minister Ted McMeekin, he has decided not to extend the municipal
land transfer tax beyond Toronto.
February 8, 2012 - Canadian Real Estate Association (CREA) and five other major real estate boards
including Toronto Real Estate Board have developed a new index to measure the trend in house prices
and inflation in the housing market. There are a number of indices under MLS® HPI indices.
This is similar to Consumer Price Index (CPI) that is a measure of consumer price inflation.
Read more ...