Number Of GTA Condos Rented In Q2 Remains Steady

The number of Toronto condos rented in the second quarter of 2016 was down only 2.7 per cent compared to the same time last year, according to the Toronto Real Estate Board.

“Greater Toronto Area Realtors continued to facilitate a large number of rental transactions in the second quarter, as investor-held condo apartments remained an important component of the overall rental supply in the GTA,” said the president of the Toronto Real Estate Board, Larry Cerqua. “If the market had benefited from more listings in Q2, the number of rentals would have likely been above last year’s level.”

The average rent for a one-bedroom condo increased by 6.4% year-over-year, up to $1,710. For a 2-bedroom condo, the average rent increased by 4.1%, to $2,330.

Jason Mercer, the director of market analysis for the Toronto Real Estate Board, said that, “Year-to-date, total condominium apartment completions in the GTA were down compared to the same period in 2015. This contributed to the decline in the number of apartments listed for rent on TREB’s MLS system. However, the number of rental transactions remained

 

 

Bank of Canada Keeps Interest Rates Steady

On July 13th, the Bank of Canada announced it would maintain its target overnight lending rate at 0.5%. On this same day, the advertised five-year lending rate was 4.74%, which is 0.1% higher than the last rate announcement.

According to the Canadian Real Estate Association, “The announcement repeated many of the themes from its announcements and Monetary Policy Reports published in late 2015 and early 2016. Chief among these themes is how the Bank is still counting on the continuation of low interest rates and stronger U.S. economic growth to buoy Canadian exporters amid ongoing weakness in Canadian business investment. However, the Bank again reduced its annual forecast for Canadian economic growth in light [of] ‘a weaker outlook for business investment and a lower profile for exports reflecting a downward adjustment to US investment spending.’ It also recognized how recent economic growth was reduced by the Alberta wildfires; however, it expects Canadian economic growth will pick up in the third quart as oil production resumes.”

The next rate announcement from the Bank of Canada is scheduled for September 7th.

GTA Low-Rise Home Prices More Than Doubled Over 10 Years

In June 2006, the average price of a new low-rise home in the Great Toronto Area was $393,398, and now 10 years later the average price has hit $887,543 according to BILD, the Building Industry and Land Development Association.

The term “low-rise homes” applies to townhomes, semi-detached and detached homes. Within the last year, the price of these homes increased from $785,800 to today’s high, a jump of over $100,000

Michelle Noble, the vice president of communications for BILD, said that, “The price of low-rise homes has grown exponentially as supply has dropped.”

In 2006, new homes in builders’ inventory totaled almost 30,000, more than half of which were low-rise homes. This year, there were 18,427 homes available, only 2,000 of which were low-rise homes. This is a near record low.

She continued, “Supply of new low-rise homes has decline dramatically in the last 10 years due to government policy and lack of available serviced land. Demand for ground-related homes is far outpacing supply, with some projects selling out just hours after launching.”

Are Home Inspectors Regulated in Ontario?

Most homebuyers are told that getting a home inspection is one of the wisest decisions they can make as a buyer, and that going without one can be a very costly mistake. And yes, this is true. A home inspection is a very smart investment. But what most homebuyers don’t know is that home inspectors aren’t regulated. In fact, anyone can be a home inspector in Ontario.

While the government started looking into the issue three years ago with panels, reports and recommendations, but nothing has happened in an official regulating capacity yet. However, Trinity-Spadina MPP Han Dong recently introduced a private member’s bill called Licensed Home Inspectors Act, 2016.

The purpose of this bill is to create an administrative authority that would regulate the industry. So we could be one step closer to regulating home inspectors in Ontario, but in the meantime, homeowners need to ensure they do their research and find a home inspector with quality references.

Toronto Real Estate Board Will Appeal Tribunal Decision

The Toronto Real Estate Board has announced that it will appeal the Competition Tribunal’s decision to release data on homes sold and pending sales.

“This order provides little protection for the consumer and opens the door to misuse and abuse of their sensitive personal financial information and the content of an Agreement of Purchase and Sale contract that has not been closed,” said the Chief Executive Officer of the Toronto Real Estate Board, John DiMichele. The consumer has privacy rights and only the consumer should be the one to determine, with clear understanding, when and where their personal financial information is disclosed.

DiMichele continued, “The issue for TREB is about duty of care and professional responsibility. TREB has grown to more than 45,000 Members across the GTA and does not discriminate between business models used by its Members. In fact, we welcome and support all innovation and business models. Make no mistake, this decision should raise concern for all consumers about informed consumer content and disclosure of confidential content within an Agreement of Purchase and Sale contract that has not closed. TREB believes the case law is clear and the Digital Privacy Act and personal Information Protection and Electronic Documents Act are very specific on consent. TREB believes it’s the consumer’s information and they have a right to choose. Choice and consent with respect to personal financial information does not impede innovation.”

To read the full statement, visit the Toronto Real Estate Board website here.

Toronto Home Sales And Prices Increase In June

According to the Toronto Real Estate Board, the number of home sales during the month of June was 7.5 per cent higher than the number seen in June of last year, while listings decreased by 3.8 per cent.

“As I start my term as TREB President, we are certainly in an interesting environment for ownership housing,” said incoming Toronto Real Estate Board president Larry Cerqua. “There is no doubt that demand is at a record level, but would-be home buyers continue to face an uphill battle against a constrained supply of listings, which has perpetuated strong price growth. Buyers and sellers alike continue to benefit from the value a Realtor brings to a transaction.”

He continued, “As the federal, provincial and local levels of government discuss housing policy in the coming months, issues affecting the lack of supply in the GTA should be of paramount importance. TREB will be undertaking, and making public, results of additional research in the second half of 2016, with the goal of proactively adding to the housing policy discussion.”

The average selling price for a home in Toronto during June 2016 was $746,546, which is an increase of 16.8 per cent over last year.

Jason Mercer, the Toronto Real Estate Board’s Director of Market Analysis, said that, “When TREB surveyed consumer intentions for 2016, we found that the majority of GTA households who were likely to purchase a home continued to be pointed towards some form of ground-oriented housing. This is why we continue to see strong competition between buyers in many neighbourhoods where supply remains constrained.”

Toronto Commercial Real Estate Leasing Strong In Q2 2016

According to the Toronto Real Estate Board’s Commercial Network Members, commercial leasing activity in Toronto saw strong growth during the second quarter of the year with an increase of 27 per cent compared to the same time last year.

The majority of leased space was industrial property.

“It was certainly promising to see growth in the amount of space leased in the second quarter of the year, especially given the level of economic uncertainty in Canada at the present time,” said the president of the Toronto Real Estate Board, Larry Cerqua, in a press release. “However, while the regional economy in the Greater Golden Horseshoe has outperformed relative to many other metropolitan areas across the country, it is important to note that the most recent Bank of Canada Business Outlook Survey points to flat sales growth and moderate investment intentions. This suggests that we could continue to see some volatility in commercial leasing in the coming months.”

While leased space was up, total sales of commercial, industrial and office space decreased from 362 sales during the second quarter of last year to 238 this year.