Spotlight on The Luxury Real Estate Market

Sales of homes priced over $1 million were up year-over-year in Toronto, Vancouver, Calgary, Victoria and Oakville in the first nine months of 2016. In the Greater Toronto Area and Vancouver, Canada’s largest high-end housing markets, sales of $3 million-plus homes saw significant increases, of 86 per cent in the GTA and 41 per cent in Vancouver.

While Vancouver sales of $1 million properties were up by three per cent overall, single-family home sales in that range declined by seven per cent year-over-year. One factor contributing to this decrease is the foreign buyer tax implemented by the provincial government in August, which has resulted in slowing demand for single-family detached homes from off-shore buyers.

“Vancouver’s high-end market has experienced a slowdown in the past several months after a period of record-breaking sales,” said Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “Part of this may be due to the tax on foreign buyers that was introduced in August, though there may be other factors at play as well, such as higher inventory lessening buyers’ sense of urgency.”

The Greater Toronto Area’s market has experienced continued strong demand for luxury properties, with sales of homes over $3 million rising by 86 per cent year-over-year. This is largely attributable to overall price appreciation in the market, driven by low inventory and high demand for single-family homes, which has resulted in more homes meeting the higher dollar threshold. Additionally, significant price appreciation throughout the housing market has allowed move-up buyers to build up enough equity in first or second homes to purchase a high-end home.

Click HERE for the full report.

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GTA Condo Market Report Q3 2016

Condo Sales and Average Price Up in Q3 2016

Greater Toronto Realtors reported 8,014 condo apartment sales through the MLS in the third quarter of 2016. The number of transactions represented a 22.1% increase compared to 6,564 transactions reported in Q3 2015.

In the City of Toronto, which accounted for 70% of condo apartment sales in the GTA, sales were up by 21.0%. The average selling price in the City of Toronto was $440,096 up 8.4% from Q3 2015.

The number of new listings in the GTA reported in Q3 was down by 13.3% compared to the same period in 2015.

“While the low-rise market has been top-of-mind in the supply discussion, it is very important to note that supply pressures have also been experienced in the condominium apartment market segment over the past year. The completion of new units was down substantially during the first three quarters of 2016 compared to the same period in 2015. This arguably played a role in the decline in new condominium apartment listings on TREB’s MLS System,” said Toronto Real Estate Board Larry Cerqua.

The average GTA selling price grew in Q3 up by 9.6% from the same time last year to $415,643

“The annual rate of condominium apartment price growth has accelerated over the past year as the supply of units available for sale became more constrained while demand remained strong. With this said, however, annual rates of price growth remain well-below those for low-rise home types. Condo apartments continue to be an affordable entry point into home ownership for first-time buyers,” said Jason Mercer, TREB’s Senior Manager of Market Analyses.

Other notable statistics include the average days on the market for Q3 at 25 days. Active listings were 3,965 in Q3-down 40.5% from Q3 2015.

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 GTA averages. Results in one building do not indicate that all other buildings  are experiencing the same results.

There were 9,164 condominium apartment rental transactions reported through TREB’s MLs system during Q3 2016. This result represented a year-over-year decrease of 4.8% compared to Q3 2015. The decrease was due to the dip in listings.

In the downtown core the number of rental transactions was up slightly.

Tighter market conditions translated into strong average annual rates of rent growth. GTA-wide, average one-bedroom and two-bedroom rents were up compared to the same period in 2015. The average one-bedroom rent was up by 7.2% to $1,777. The average two-bedroom rent was up by 7.9% to $2,419.

The vacancy rate for a condo apartment in the City of Toronto for Q3 2016 was 1.8%.

Do you have any questions about Toronto Real Estate? Please contact me direct at or by email, David@DavidStoddard.ca

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Tax Rebate Doubled for First Time Homebuyers

Ontario is doubling the rebate on its land transfer tax for first-time homebuyers to $4,000 in an effort to help them enter the housing market, but it is also raising the same tax on homes that sell for over $2 million.

Finance Minister Charles Sousa said first-time homebuyers won’t pay any land transfer tax on the first $368,000 of a purchase price after the changes take effect Jan. 1. He called the $4,000 rebates an “incentive” for would-be homeowners.

Currently first time homebuyers do not pay any land transfer tax on the first $227,350 of a purchase price, a $2000 rebate.

“It’s not going to change their ability to afford the house,” he said. “It is going to provide an added boost at their start.”

Sousa again said Ontario would not follow the lead of British Columbia, which in August imposed a 15 per cent tax on foreign nationals buying real estate in the Vancouver area. But he said the provincial government will block non-Canadian citizens from accessing the increased rebates for the land transfer tax.

There will also be a half-percentage point increase in Ontario’s land transfer tax on homes that fetch more than $2 million, a measure expected to affect less than one per cent of the population, added Sousa.

The province takes in over $2.1 billion a year in the land transfer tax. Any additional revenue generated by the increase in the levy on luxury homes will help pay for the doubled rebates for first-time buyers.

Note the City of Toronto also has a land transfer tax. First time homebuyers in the City of Toronto are currently exempt on the first $400,000 of a purchase price.

For the full article click HERE.

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For all of your real estate questions please contact me direct (416-520-6746) or by email, David@DavidStoddard.ca

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Please contact me direct at or by email, David@DavidStoddard.ca

** You can follow my real estate posts on FACEBOOK. Click here to LIKE my real estate page

Oh, by the way……if you know of someone who would appreciate the level of service I provide, please call me, text me or email me with their name and number. I’ll be happy to follow up and take great care of them.

GTA Real Estate Market Report September 2016

Sales Growth Continues in September

 

Greater Toronto Realtors reported 9,902 residential sales through the Toronto MLS system in September 2016. The number of transactions in September represented a 21.5% increase compared to 8,147 transactions reported in September 2015.

 For the region as a whole, strong annual rates of sales growth were experienced for all major home types. The pace of detached sales growth was slower in the City of Toronto and the number of semi-detached sales was down compared to last year. In both cases, the year-over-year dip in new listings was likely the issue.

Condo apartments in the GTA had the highest sales increase year-over-year at 26.7%

The number of new listings reported in September was down 5.6% compared to the same period in 2016. Active listings were 11,255 in September-down 36.6% from September 2015.

 “We continued to see strong demand for ownership housing up against a short supply of listings in the GTA in September. The sustained lack of inventory in many neighbourhoods across the GTA continued to underpin high rates of price growth for all home types,” said Larry Cerqua, TREB’s President.

The average price in September was up by 20.4% from the same time last year to $755,755. Detached homes in the GTA led the way in terms of an average price increase at 23.6% compared to the same time last year.

 

“The Toronto Real Estate Board will be closely monitoring how the recent changes to Federal mortgage lending guidelines and capital gains tax exemption rules impact the housing market in the GTA. While these changes are pointed at the demand for ownership housing, it is important to note that much of the upward pressure on home prices in the GTA has been based on the declining inventory of homes available for sale,” said Jason Mercer, TREB’s Director of Market Analysis.

Sales of Toronto (416 area code) condominium apartments increased by 24.3% in September 2016. The average selling price of a Toronto condo increased by 6.5% in September 2016 from the same time last year to $446,294.

Condominium apartments accounted for 26.1% of total sales in the GTA for September 2016 while detached homes accounted for 47.5% of the total sales.

Other notable statistics include the average days on the market for September at 16 days, down 27.3%. The sales-to-listings ratio for September 2016 was 88.0% which is classified as a very big 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.

 

 For all of your real estate questions please contact me direct (416-520-6746) or by email, David@DavidStoddard.ca

** You can follow my real estate posts on FACEBOOK. Click here to LIKE my real estate page

 Oh, by the way……if you know of someone who would appreciate the level of service I provide, please call me, text me or email me with their name and number. I’ll be happy to follow up and take great care of them.