Toronto Real estate Board reported 2,790 MLS® sales through during the first two weeks of July 2010 representing a a 37 per cent decrease compared to the 4,437 in the same period last year. New listings were down by by eight per cent  to 5,184. Last summer existing home sales were unusually high after a very slow start to 2009 and continued strong throughout the rest of 2009  increasing in intensity through the first 5 months of 2010. Year over year unit sales will be down year in the second half of 2010. Year-to-date sales are up by more than 18 %  2010 will end up one of the strongest years on record probably in the low 80,000 units.
The average price for July mid-month transactions was $427,931 – up eight per cent compared to the average of $394,750 recorded during the first 14 days of July 2009. Growth in average transaction price will slow as  sales of  units declines.

Summary Of July Sales And Average Price

July                                                    2010                                                                2009

                                                        Sales               Average  Price                   Sales                  Average  Price
                                                                                                                                                       
      City of Toronto    ("416")            1,115                        $458,426                 1,703                       $419,754
        Rest of GTA      ("905")            1,675                        $407,631                 2,734                       $379,174
      GTA                                           2,790                        $427,931                 4,437                       $394,750

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Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®)  in June. This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. We are seeing many more listings this June than last, up 28%. 2009 was such a strange year with it's very weak first quarter and very strong finish! 2010 had a very strong first quarter and is  now reverting to what senior agents are recognizing as a more traditional seasonal market.

The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009. As the unit numbers drop so will the rate of price increase. "In the field" we are already seeing some significant discounts made from the listing price in order to secure a transaction. This is all reflective of a healthy and sustainable market.

In June, the median price was $367,750, from the $345,000 recorded during June of 2009

Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date
sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.

June 3, 2010 -- Greater Toronto REALTORS® reported 9,470 sales through the Multiple Listing Service® (MLS®) in May, representing a one per cent dip from May 2009. In comparison to previous years, this was the third highest May sales result on record.
As predicted the market is becoming more normal. More listings, more choice and buyers are being more measured in their response. As we move through 2010 year on year comparisons to 2009 become more meaningful. First quarter of '09 was slow, first quarter of  '10 was insane. Price increases are still being recorded but as unit sales drop then average price will moderate, perhaps even a modest decline very much later in the year when increased interest rates take hold. The economy looks good, employment looks good, consumer confidence looks good. The only worry is that there is too much good news. The penalty of living in the best country on the planet.
New listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – up 13 per cent compared to the average of $395,609 recorded in May 2009.


Median Price
In May, the median price was $376,750, from the $337,000 recorded during May of 2009.

All Change for The New (Old) Reality

TORONTO, April 16, 2010 – During the first two weeks of April the Toronto real Estate Board reported 4,601 sales through the MLS®.
This is a 25 per cent increase over the 3,681 sales recorded during the the first 2 weeks of same period in 2009. New listings increased by 48 per cent annually to 9,512 as the market reacted to the average price increases over the past several months tempting more Sellers into the Market. We are moving  to a more balanced, normal market
The average price for April mid-month transactions was $430,271 – up 12 per cent compared to the average of $383,361 recorded during the first 14 days of April 2009.
The average annual rate of price increase will continue to decline as 2010 is compared to the improving market of a year ago to our usual single digit annual price increase. Look for a relatively quiet Summer with further moderation in prices, much more like a traditional market compared to the insanity of the earlier part of the year. My spies are already reporting a reduction in the number of Multiple Offers in the marketplace. Here's to an active  and sustainable market.                          

                                                          Summary Of April Sales And Average Price  

                                                                                                               APRIL
                                                           2010                                                                                                     2009
                                         Sales                      Average  Price                                                                 Sales                Average   Price
City of Toronto ("416")     1,837                          $470,532                                                                    1,494                   $412,987
Rest of GTA ("905")         2,764                          $403,514                                                                    2,187                   $362,785
           GTA                      4,601                          $430,271                                                                    3,681                   $383,161
Source: Toronto Real Estate Board

The Toronto Real Estate Board  reported 10,430 sales through the Multiple Listing Service® (MLS®) in March, pushing total first quarter 2010 sales to 22,418 – the best result on record.. The average transaction price for March  was $434,696. The average price for the first quarter was $427,948.
The question I am asked most often is "How long can this continue?" 

Pulling my scratched, battered and somewhat unreliable crystal ball out from under the bed in the spare room I prognosticate that even with the forthcoming rises in interest rates, HST, Government meddling in the operation of a free, open and competitive market that the fundamental soundness of the Canadian Real Estate Market will triumph and that the impetus from the strengthening economy will be sufficient to ensure prosperity for all. For the next cycle. 

Prices will continue to improve but at a more measured pace as the increase in  active listings continues (up 42% from a very low March 2009) to balance the market. Funny how that works. That Adam Smith knew a thing or two.

GTA REALTORS® REPORTING BEST MARCH EVER 

TORONTO, MARCH 17, 2010 - Greater Toronto REALTORS® reported 4,353 sales through the Multiple Listing Service® (MLS®) during the first two weeks of March.

This represented a 70 per cent increase over recession hit March of 2009 when only 2,562 sales were recorded .

This is  16 per cent higher than the previous high reached in 2006.

Toronto consumers are demonstrating their faith in the strength and resilience of the GTA Market, and with one eye on the probable interest rate hikes threatened for the last 2 quarters of the year.

The average price for March mid-month transactions was $440,153 – a 20 per cent increase over 2009. New listings within the Toronto Real Estate Board boundaries were up 34 per cent to 8,540

March

                                             2010                                        2009

                                      Sales     Average Price             Sales     Average Price

City of Toronto ("416")  1,726        $491,680                   987      $400,454

Rest of GTA ("905")     2,627         $406,298                1,575      $343,594

             GTA                  4,353       $440,153                2,562      $365,499

How the Ontario HST Will Impact You in 2010?. This new tax will take effect on July 1, 2010. The HST combines the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new "harmonized" total tax of 13% percent. This new tax will be any goods or services which hitherto only had one or the other tax applied. The HST will result in a 13% tax on new home construction. In Ontario there is no HST  payable on the sale of a resale home (residential). The single largest dollar amount exchanged is not taxable under HST. Home buyers and sellers will have to pay HST on a range of services associated with the real estate transaction such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services. After July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay. Lawyer's fees for both Buyers and Sellers will also be subject to the 13% percent HST,  The cost of a Condominium Status Certificate should remain unchanged as the $100 fee is the maximum including all taxes which can be charged under the Condo Act.
As a buyer Home Inspections  will be subject to the 13% percent HST as will the cost of movers. The cost of the CMHC premium for "high-ratio" mortgages has traditionally been taxable for PST - this amount will now be taxable for the full 13% percent HST. 
A press release from the Ontario Real Estate Association earlier this year summarized some of the changes which will take place, - for a resale house priced at $360,000, the HST would add over two thousand dollars in new taxes to closing costs. Please note, these taxes are in addition to the Land Transfer Taxes which exist for both the Province and the City of Toronto. 
Many market watchers are predicting a flurry of activity leading up to the July 1, 2010 implementation date, as buyers and sellers both try to avoid paying the tax. Which is a relatively minor increase, the rela spur to buy in the next 3/4 months should be the threatened interst rate increase whhich some analysts predict to be a full 1% by year end.

March 3, 2010 -- Greater Toronto REALTORS® reported 7,291 sales through the Multiple Listing Service® (MLS®) in February, representing a 77 per cent increase in units sold over February 2009. The average price increased 19 per cent year-over-year to $431,509. 
New listings also increased in February, climbing 24 per cent compared to the same month last year.As the market matures through 2010 the expectation is that we will have more listings as prices rise to tempt seller's into the market and redress the extreme imbalance we have now between the number of Buyers and Sellers. Adam Smith's invisible hand will do it's work.

No panic please. The first 3 months of 2009 were very slow for the Southern Ontario real estate market and so when comparisons are made to 2010's very active market, price increase look large. As the market matures through 2010 the expectation is that we will have more listings as prices rise to redress the extreme imbalance we have now between the number of Buyers and Sellers. Adam Smith's invisible hand will do it's work.

The Feds have moved to preempt what some commentators have described as "a housing bubble" The finance minister's intervention was however quite cautious as befits  an active but not yet frothy market. Second homes requiring a CMHC insured mortgage must have a 20% down payment; home buyers must now qualify at the 5 year fixed posted rate and Home Equity line of credit are now to a maximum of 90% instead of 95%. All to take effect 19 April.