TORONTO, ONTARIO, March 6, 2018 – Toronto Real Estate Board President Tim Syrianos
announced that Greater Toronto Area REALTORS® reported 5,175 residential transactions
through TREB"s MLS® System in February 2018. This result was down 34.9 percent compared to
the record 7,955 sales reported in February 2017.
The number of new listings entered into TREB"s MLS® System totaled 10,520, a 7.3 per cent
increase compared to the 9,801 new listings entered in February 2017. However, the level of
new listings remained below the average for the month of February for the previous 10 years.
"When TREB released its Outlook for 2018, the forecast anticipated a slow start to the year
compared to the historically high sales count reported in the winter and early spring of 2017.
Prospective home buyers are still coming to terms with the psychological impact of the Fair
Housing Plan, and some have also had to reevaluate their plans due to the new OFSI-mandated
mortgage stress test guidelines and generally higher borrowing costs," said Mr. Syrianos.
The MLS® Home Price Index Composite Benchmark was up by 3.2 per cent on a year-over-year
basis for the TREB market area as a whole. This growth was driven by the apartment and
townhouse market segments, with annual benchmark price increases of 18.8 per cent and 7.5
per cent respectively. Single-family detached and attached benchmark prices were down slightly
compared to February 2017. The overall average selling price for February sales was down
12.4% year-over-year to $767,818. However, putting aside the price spike reported in the first
quarter of 2017, it is important to note that February"s average price remained 12 per cent
higher than the average reported for February 2016, which represents an annualized increase
well above the rate of inflation for the past two years.
"As we move further into the spring and summer months, growth in sales and selling prices is
expected to pick up relative to last year. Expect stronger price growth to continue in the
comparatively more affordable townhouse and condominium apartment segments. This being
said, listings supply will likely remain below average in many neighbourhoods in the GTA, which,
over the long-term, could further hamper affordability," said Jason Mercer, TREB"s Director of
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 ...