GTA Real Estate Market Report June, 2014

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Strong Growth in June Sales

Greater Toronto Realtors reported 10,180 residential sales through the MLS in June 2014. The number of transactions represented a 15.4% increase compared to 8,821 transactions reported in June 2013.

The number of new listings reported in June was up 8.3% compared to the same period in 2013. Active listings were 20,686 in June-down 6.8% from June  2013.

“Home buyers in the greater Toronto area are confidant in their ability to purchase and affordably pay for a home. Generally speaking , buyers feel that ownership housing will be a good investment over the long term. This is why we continued to see increases in home sales in June for all major home types across the GTA. Given the degree of pent-up demand in the market today, I would expect to see sales growth continue through the summer,” said Toronto Real Estate Board President Paul Etherington.

The average selling price continued to grow in June up by 7.4% from the same time last year to $568,953.  Note, the average selling price for 2013 as a whole was up by almost 5.2% to $523,036!!

“With less than two months of inventory in many parts of the GTA, it makes sense that we continued to experience very strong price growth in June. This is especially the case for low-rise home types like singles, semis and townhouses. Strong price growth for these home types will continue through the remainder of 2014. Despite higher inventory levels, the condominium apartment market segment has benefitted from enough buyer interest to result in above-inflation price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analyses.

Sales of Toronto (416 area code) condominium apartments increased by 21.4% from June 2013. The average selling price of a Toronto condo increased  by 6.3% from the same time last year.

Condominium apartments accounted for 21.7% of total sales in the GTA for June 2014 while detached homes accounted for 49.6% of the total sales.

Other notable statistics include the average days on the market for June at 22 days, down 8.3% The sales-to-listings ratio for June was 49.2% which is classified as a seller’s market. A ratio from 24%-28% is considered a balanced market.

Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range

Real estate is very neighbourhood specific, building specific  and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood , on one street or in one building do not indicate that all other neighbourhoods, streets or buildings are experiencing the same results. We are still seeing multiple offers in some areas for the best homes and condos. 

 

Condo Sales Growth Outstrips Listings Growth in Q2

Greater Toronto Realtors reported 6.553 condo apartment sales through the MLS in the second quarter of  2014. The number of transactions represented a 10.4% increase compared to 5,936 transactions reported in Q2 2013.

In the City of Toronto, which accounted for 71% of condo apartment sales in the GTA, sales were up by 9.3%. The average selling price in Toronto was $392,729 up 5.3% from Q2 2013.

The number of new listings in the GTA reported in Q2 was up by 4.4% compared to the same period in 2013.

“Condominium apartments represent an affordable entry point into the market for first time buyers. On top of this, some condo properties cater to households looking to move out of their traditional low-rise home, and we are increasingly seeing households choose condos as the place where they will raise a family, this diversity of buyers explains why sales more than kept up increased listings in the second quarter,” said Toronto Real Estate Board President Paul Etherington.

The average selling price grew in Q2 up by 5.5% from the same time last year to $367,010.

“Even though inventory levels for condo apartments have been higher compared to inventory of low-rise home types like singles, semis and towns, there has been enough demand relative to supply to see strong price growth. Even as inventory levels increase due to record occupancies in 2013 , we should see enough demand to sustain price growth above the rate of inflation in the second half of this year” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Other notable statistics include the average days on the market for Q2 at 30 days. Active listings were 7,286 in Q2-up 1.5% from Q2 2013.

Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range.

Real estate is very building  specific. The numbers as reported above are averages. Results in one building do not indicate that all other buildings  are experiencing the same results.

There was an increase in the number of condo apartment rental transactions in Q2 along with the number of units listed for rent.

Average rent growth was mixed during Q2 depending on unit type. The average rent for one-bedroom units and two-bedroom units was down slightly.

The condo apartment vacancy rate for Toronto was 1.7%.

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Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

 

Toronto Condo Hot List for the Week of July 14, 2014

David Stoddard Condo Tours

 

 

 

 

 

 

 

 

 

Here are my Top Picks for the Week:

 

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900 Mount Pleasant Rd #114

Price: $349,900 Beds: 1 Baths: 1 Sq Ft: 550

Live In This Demand Location With Parking And Locker Included! Builder’s Premium Finishes Include Upgraded Granite Counters, Valence Lighting, Engineered Hardwood Floors, Marble Floor In Foyer And Bath. Great Layout Features Wall-To-Wall Closet …

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1005 King St W #917

Price: $359,900 Beds: 1 Baths: 1 Sq Ft: 600

DNA 2 In Prime King West Village. Approx 600 Sq.Ft., North Exposure Balcony, 9′ Smooth Ceiling, Granite Counters , Double Closets In The Bedroom, Beautiful Bath With Granite Counter And Frosted Glass Shower Panel, Inclusions: stainless Steel: Fr…

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205 Frederick St #1104

Price: $354,800 Beds: 1 Baths: 1 Sq Ft: 618

The Rezen – Highly Sought After Boutique Building In The St. Lawrence Market Neighbourhood. Sun-Filled West-Facing 618 Sf . 9′ Ceilings, Large Balcony, Floor-To-Ceiling Windows, Upgraded Finishes And Unobstructed Views. Hardwood. Beautifully Mai…

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1201 Dundas St E #511

Price: $414,900 Beds: 2 Baths: 1 Sq Ft: 850

Leslieville Living At Flatiron Lofts. Split Layout Loft With 9Ft Exposed Concrete Ceilings. Large Windows. Hardwood Throughout. Over 800 Sqft Of Open Concept Living Space Perfect For Entertaining. Living Room Opens Onto 150 Sqft Terrace With Bbq Gas…

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Toronto Condo Rentals Surge

Great article in www.TheGlobeandMail.com

The market for condominium rentals in Toronto is surging, but rental costs are expected to rise.

That’s because the pace of new listings is lagging that of transactions, according to the Toronto Real Estate Board.

And it suggests something of a shift given that rental costs dipped in the second quarter of the year in a city whose condo market is deemed frothy by some observers.

Rental transactions, largely those of investors renting out their units, surged by 25.7 per cent in the second quarter of this year compared to the same three-month period of 2013.

The number of units put up for rent also rose sharply, though at a slower pace than the transactions, at 22.2 per cent.

“Last quarter we saw stronger growth in the number of units rented relative to the number of units listed,” Jason Mercer, the group’s senior manager of market analysis, said today.

“This suggests that competition between renters increased,” Mr. Mercer said in the TREB report.

“If this trend continues, we will likely experience renewed growth in average rents in the second half of 2014.”

Between April and June, the realtors group said, the average rental cost of a one-bedroom unit eased 1.7 per cent to $1,583, while that for a two-bedroom apartment dipped at a pace just slightly below that to $2,142.

Condo sales in Toronto, in turn, climbed 10.4 per cent in the second quarter, while new listings lagged at 4.4 per cent.

The average sale price rose 5.5 per cent.

The city’s condo market has been a source of concern, given the pace of construction, though Mr. Mercer said demand should support that.

“Even as inventory levels increase due to record occupancies in 2013, we should see enough demand to sustain price growth above the rate of inflation in the second half of this year,” he said

Click here for more.

Here is what you can do next:

Free Tour of any Condo or Home

Free Buyer and Seller Reports:

Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

Is Airbnb Legal in Ontario?

Great article in www.TheStar.com 

A friend told me that she went to the Caribbean for a holiday on a deal and it cost her $1,000 for 10 days.

While she was away, she rented out her downtown Toronto condo on Airbnb for $1,500. Sounds good. But is what she did legal in Ontario?

Here’s what Airbnb is all about:

Airbnb is a website that connects travellers from all over the world to homeowners who are looking to make extra money by renting out their entire homes, or in some cases, an extra room, for short periods of time. In just 6 years, the company has grown to now have over 550,000 room listings available on their website.

You hook up with your homeowner through the website and Airbnb takes a cut of the money that you pay.

You can see the appeal: Travellers can find a place in some of the best parts of a city such as Paris, London or San Francisco and pay a fraction of what it would cost to stay in a hotel. Some travellers prefer to stay in a private home so that they can obtain an authentic local experience. Still others warn that you must do your due diligence in advance and check for references so you are not disappointed when you arrive.

The company offers insurance to a host to cover some damages that may be caused by a traveller, but there are many exclusions, so read the policy carefully.

The company, which doesn’t own any hotels, is now valued at over $10 billion, more than many of the large hotel chains.

As you can imagine, the hotel industry is not happy about this and some cities are fighting back. In New York City, for example, it is now illegal to rent your home for less than 30 days. Quebec has also passed laws against renting homes for short periods of time.

Is this legal in Ontario? While Ontario doesn’t have laws expressly forbidding renting your home for short periods of time, there are other matters to consider.

For example, most condominiums have rules that do not permit short-term rentals. This is primarily due to security concerns, as the owners are wary of different people just showing up each night at a neighbouring unit. It is interesting that property addresses are not included on the airbnb website. But website visitors can still find out about the property through pictures, information about the hosts and reviews by other travellers. If you’re renting your condo out and anyone in the building complains, the board could bring an action against you and you will likely have to pay the board’s legal fees if you do not stop.

Click here for more.

 

Here is what you can do next:

Free Tour of any Condo or Home

Free Buyer and Seller Reports:

Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

Toronto Housing Market On Track to be Hottest in Canada for 2014: Report

Great article in www.TheStar.com 

Toronto is on track to end 2014 as the hottest housing market in the country, with prices likely to rise 8.1 per cent, year over year, outpacing even Vancouver’s anticipated 7.1 per cent climb, according to Royal LePage’s House Price Survey and market forecast.

Even the GTA’s much-watched condo sector is expected to end the year on a healthy note, given that prices have already increased 5.4 per cent, to an average of $380,453, in the first half of 2014, year over year, notes the report released Wednesday.

That compares to just 0.3 per cent growth in condo prices in Vancouver during the same period. There the average condo now sells for $491,984, says the national real estate firm. That is a turnaround from last year when Vancouver saw house price declines.

Bungalows in that west coast city were up 5.2 per cent by mid-year to $1.1 million, on average, while two-storey detached home prices climbed 4.6 per cent, year to year, to $1.2 million.

Unrelenting demand for housing in Canada’s two biggest cities — “chronic supply shortages” have played out, in Toronto in particular, in often irrational bidding wars that have propelled prices further into the stratosphere — is actually masking “temperate” demand in most other areas of the country, notes the report on national home sales to the end of June and looking ahead to 2015.

“While a widening affordability gap in Canada’s largest urban centres is characterizing the national market Canadians read about daily, year-over-year house price increases in most regions of the country are presently tracking below the historical average,” notes Phil Soper, president and chief executive of Royal LePage in a statement.

The national average home price is expected to increase 5.1 per cent by year’s end, over 2013, skewed upward largely by Toronto, Vancouver and, to a lesser extent, Calgary. That western boom town is expected to see house prices climb by an average of 5.5 per cent by year’s end in the face of strong work-force growth and fierce competition for properties.

“A closer look at Canada’s residential real estate market points to a tale of two city types, in which big city housing activity represents a small part of the picture but accounts for a large part of the gains in national average home prices,” says Royal LePage.

But that growth should ease in the coming year.

“Compared to other major forecasts, our year-beginning national outlook predicted a higher level of 2014 average price appreciation, yet supply constraints in a handful of our largest cities necessitate a revision upwards,” said Soper.

“Looking ahead to 2015, we expect house prices to track more closely to the rate of general economic growth. That is, we see price increases in Canada’s largest cities moderating, just as our smaller city markets should see a lift.”

Across the GTA, two-storey homes and detached bungalows saw the biggest price growth, at 8.3 and 7.2 per cent respectively in the first half of 2014, year over year. That brought the average price of two-storey to $730,806 and a bungalow to $611,906, says Royal LePage.

On the condo front, strong demand and price appreciation continues to be driven by investors looking to hold for the long term and cash in on Toronto’s high rents, as well as young buyers looking for affordable homes close to downtown jobs, especially in bigger units that can accommodate families, says Gino Romanese, a senior vice president.

Here’s the expected price growth across the rest of the country by the end of 2014:

HALIFAX: 1.9 per cent

MONTREAL: 1.7 per cent

OTTAWA: 2.5 per cent

WINNIPEG: 2.8 per cent

REGINA: 2.1 per cent

EDMONTON: 4.5 per cent

Click here for more.

David Stoddard Buyer Planning Sessions

 

 

 

 

 

 

 

 

 

 

 

Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

Toronto Condo Hot List for the Week of June 30, 2014

 

Here are my Top Picks for the Week:

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21 Grand Magazine St. #407

Price: $439,900 Beds: 1 Baths: 1 Sq Ft: 850

Open Concept Floor Plan. Den Perfect For A 2nd Bedroom Or Executive Office With A Sliding Door For Privacy. Beautiful Upgraded Kitchen .Granite Counters. Walk Out To South Exposure Balcony. Master Bedroom Has Full Bathroom. Hardwood Floors. Inclusio…

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2191 Yonge St. #1408

Price: $599,999 Beds: 2 Baths: 2 Sq Ft: 1100

Open Concept Corner Unit In The Coveted Minto Quantum North Tower. NorthWest Exposure From The Balcony. Hardwood Floors. Granite Counters. Inclusions:Stainless Steel: Stove, Fridge, Built-In Dishwasher, Microwave-Exhaust. Stacked Washer And Dryer. A…

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1171 Queen St W #1306

Price: $349,900 Beds: 1 Baths: 1 Sq Ft: 650

Live In The Heart Of West Queen West! This Sleek 1+Den Features 9′ Ceilings, Engineered Wood Floors, Gourmet Kitchen With Espresso Finished Cabinets, Quartz Counters With Subway Tile Backsplash, Kitchen Island For Extra Seating . Floor To Ceilin…

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33 Mill St #531

Price: $399,900 Beds: 1 Baths: 1 Sq Ft: 705

Pure Spirits Loft In The Distillery District! One Bed+Studio Loft With 10Ft Exposed Ceilings. 705 Sqft Of Open Concept Living Space.Floor To Ceiling Windows. Bright Southerly View. Bamboo Floors,Granite Counters With Under Mount Sink. Upgraded Cabin…

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245 Carlaw Ave #510B

Price: $439,900 Beds: 1 Baths: 1 Sq Ft: 850

Authentic Factory Conversion Loft At The Wrigley Lofts. This Is Truly A Unique And Creative Sun Filled Loft With Massive Vintage Mushroom Columns And Industrial Factory Windows! With 14 Foot Ceilings, A Spacious Bedroom Mezzanine With Built In Custo…

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Tight Market Conditions Prompt Strong Price Growth

Free Real Estate Tours: Come on a Free Condo Tour or Free Home Tour.

Free Real Estate Reports: Informative Buyer  Reports and Seller Reports available on my website.

FaceBook:  Please join my Real Estate Page here for ongoing real estate news

 

Greater Toronto Realtors reported 11,079 residential sales through the MLS in May 2014. The number of transactions represented a 11.4% increase compared to 9,946 transactions reported in May 2013.

The number of new listings reported in May was down 0.8% compared to the same period in 2013. Active listings were 20,679 in May-down 8.8% from May 2013.

“We are now at the peak of the Spring market when we generally see the greatest number of sales and the highest average selling prices. Based on the May statistics, buyers have been more active this spring compared to last year.  Despite strong price growth so far in 2014, many households remain comfortable with the monthly mortgage payments associated with the purchase of a home as borrowing costs have remained at or near record lows over the past few months,” said Toronto Real Estate Board President Dianne Usher.

The average selling price continued to grow in May up by 8.3% from the same time last year to $585,204.  Note, the average selling price for 2013 as a whole was up by almost 5.2% to $523,036!!

“The listings situation in the GTA did not improve this past May. With listings down and sales up compared to last year, competition between buyers increased. The result was price growth well above the rate of inflation, especially for singles , semis and townhomes,” said Jason Mercer, TREB’s Senior Manager of Market Analyses.

Sales of Toronto (416 area code) condominium apartments increased by 5.4% from May 2013. The average selling price of a Toronto condo increased  by 7.6% from the same time last year.

Condominium apartments accounted for 20.2% of total sales in the GTA for May 2014 while detached homes accounted for 51.6% of the total sales.

Other notable statistics include the average days on the market for May at 21 days, down 8.7% The sales-to-listings ratio for May was 53.6% which is classified as a seller’s market. A ratio from 24%-28% is considered a balanced market.  

Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range 

Real estate is very neighbourhood specific, building specific  and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood , on one street or in one building do not indicate that all other neighbourhoods, streets or buildings are experiencing the same results. We are still seeing multiple offers in some areas for the best homes and condos. 

 

David Stoddard Buyer Planning Sessions