Category Archives: Local Durham Region Stats

Cool Reception to Spring Market

The Toronto Real Estate Board (TREB) confirmed that both the number of home sales and the prices of sold homes plunged in March, as compared to results from one year earlier.

The average home price dropped from $915,126 in March 2017 to $784,558 this past March, while the number of sales dropped to 7,228, a 39.5 percent year-over-year decline from the March 2017 record of 11,954 residential transactions. Detached home sales, which generally represent the highest price points in a given area, declined much more than other home types.

TREB President Tim Syrianos explains, “The effects of the Fair Housing Plan, the new OSFI-mandated stress test and generally higher borrowing costs have prompted some buyers to put their purchasing decision on hold.”

Jason Mercer, TREB’s Director of Market Analysis, adds, “Right now, when we are comparing home prices, we are comparing two starkly different periods of time: last year, when we had less than a month of inventory versus this year with inventory levels ranging between two and three months. It makes sense that we haven’t seen prices climb back to last year’s peak. However, in the second half of the year, expect to see the annual rate of price growth improve compared to Q1, as sales increase relative to the below-average level of listings.”

Is it the right time for you to buy or sell? Please call today for the latest market activity in your specific area of interest.

Chill Continues Throughout Market

The Toronto Real Estate Board (TREB) announced a drop in sales of almost 35 percent in February, as the average selling price fell more than 12 percent to $767,818.

Although there were more than 7 percent more new listings entered into TREB’s MLS® System in February 2018 over the same month in 2017, TREB President Tim Syrianos reported just 5,175 residential transactions in February 2018, compared to the record 7,955 sales reported in February 2017.

“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 re-evaluate their plans due to the new OFSI-mandated mortgage stress test guidelines and generally higher borrowing costs,” said Mr.Syrianos.

Price-wise, the apartment and townhouse market segments has annual benchmark price increases of 18.8 percent and 7.5 percent respectively, helping to support the TREB market area as a whole. In fact, Jason Mercer, TREB’s Director of Market Analysis, adds he expects stronger price growth to continue in the comparatively more affordable townhouse and condominium apartment segments.

Are you thinking of making a move this year? Please call today for the latest local market update and for assistance in navigating today’s ever-changing real estate market. #cbrmr

Durham ends 2016 leading GTA in average selling price growth

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Durham Region Association of REALTORS® (DRAR) President Roger Bouma reported 528 residential transactions in December 2016, a 4 per cent decrease from the same time last year. “Real estate transactions tend to slow down around the holidays,” stated Bouma. There were 411 new listings in December 2016 compared to 512 in December 2015.

The average selling price in Durham reached $570,957 last month. In comparison, the average selling price was $451,671 during the same period last year; a 26 per cent increase. “Our current housing market forecasts effects of financial conditions and changes in the economy,” added Bouma. Homes have continued to sell quickly in an average of 14 days compared to 21 days last year.

“We’ve seen substantial growth of the average selling price in Durham Region,” said Bouma. “In December 2016, Durham Region led the Greater Toronto Area (GTA) with a 26 per cent year-over-year percentage change on the MLS home price index.” Comparably, during the same time last year, Durham Region’s year-over-year percentage change was midpoint in the GTA.

The 2016 year-to-date value of all home sales in Durham Region totalled over $6.7 billion in dollar volume, a 29 per cent increase from 2015. “This is a direct reflection of the overall health of Durham Region’s economy,” said Bouma. “Rising house prices are an optimistic demonstration of consumer confidence.”

Uxbridge had the highest increase in year-to-date average selling price growth with a 31 per cent increase from 2015. The second highest increase was Oshawa at 27 per cent, and third highest was Brock and Clarington at 21 per cent. Durham Region is also selling the quickest in the GTA with a year-to-date average of 12 days-on-market, 3 days quicker than Peel Region and 4 days quicker than York Region. Ajax, Oshawa, and Whitby sold the quickest in Durham Region with an average of 10 days-on-market.

“The housing market is an economic driver that strengthens our economy,” said Bouma. “Ultimately, the rise in house prices is creating an increase in wealth for homeowners.”

Home buyers optimistic about GTA real estate market, research finds

A recent poll for the Ontario Real Estate Association shows that half of buyers expect to purchase a detached home.

Home buyers remain optimistic despite the average price for a detached home climbing to $1.3 million in Toronto this fall.

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Home buyers remain optimistic despite the average price for a detached home climbing to $1.3 million in Toronto this fall.

High prices and tighter lending conditions aren’t dampening consumers’ optimism and enthusiasm for real estate in the Toronto region, where half of homebuyers still expect to purchase that most expensive and elusive asset, a detached home.

Even as the price of the average Toronto area detached home climbed to about $1 million this fall ($1.3 million in Toronto), half of buyers in the region say that’s the kind of house they expect to purchase, according to the Ontario Real Estate Association (OREA) Ontario Home Ownership Index being released Tuesday.

“People are optimistic about the housing market in 2017. We actually see an increase in people who are looking to buy and an increase in the number looking to sell a home,” said OREA CEO Tim Hudak.

The index is based on research conducted twice a year by Ipsos Reid to gauge Ontarian’s perceptions of the real estate market and the economy. Overall, the index rose two points to 131.

It shows that 49 per cent of Toronto area residents expect their city’s real estate market will be stronger in the coming year, compared to 46 per cent this year.

Twenty-two per cent of survey respondents said they expected to buy a semi-detached home and 19 per cent were in the market for a condo, a drop from last year when 26 per cent identified that housing choice.

“It’s part of life that we, as human beings like to have a little bit of space when you’re raising a family … You’re really seeing the increase in prices are among the detached and semi-detached homes because people at some time in their lives, they often want a little bit of space for their garden or to kick the soccer ball around with their daughter,” Hudak said.

But changes from government are impacting some buyer attitudes.

“There is a sentiment too among first-time home buyers that some will be forced to put off a decision or look at a smaller-valued home because of the recent changes on mortgage insurance and the stress test,” he said.

Hudak, former leader of the Ontario Progressive Conservative Party, praised the Liberal government for doubling the first-time buyer rebate on the provincial land transfer tax to $4,000 on homes up to $300,000.

That’s the range most buyers outside of Toronto are considering and it’s still helpful for Toronto consumers too, he said.

“We’re hopeful the city will match that instead of clawing it back. I remain optimistic about that,” said Hudak, referring to a recent city manager’s report that suggested Toronto could raise some badly needed revenue by harmonizing its land transfer charge — the only such municipal tax — with the province.

As vigorous as the market has been in 2016, with prices up about 20 per cent year-over-year, half of Toronto area residents say they expect it will be even stronger next year, according to the Ipsos data.

In the City of Toronto, 52 per cent of respondents said the current residential real estate market is favourable. That was up 10 index points from last year’s survey. Residents in the 905-area communities were even more favourably disposed to their real estate picture, at 57 per cent. That was down, however, seven points from last year.

More than half of survey respondents saw real estate conditions as favourable.

The online Ipsos survey of 1,003 Ontario residents for OREA was conducted between Oct. 27 and 31. It is considered accurate within 3.5 per cent 19 times out of 20.

Buyer and seller perceptions

18%

Toronto area residents who said they planned to purchase a home in the next two years — up from 15% last year. That compares to 14% of Ontarians who said they would likely buy in the next two years — a seven index point increase over last year.

19%

Toronto area respondents who plan to sell a home in the next two years, up from 14% last year.

82%

Likely home buyers in Ontario who believe their local economy is good. 76% of those likely to sell their homes say the same.

45%

Ontario first-time buyers who say they will need to keep saving for a 20% down payment to meet the government’s more rigorous mortgage requirements.

20%

First-time buyers who say they have to postpone their purchase because of the new lending rules.

34%

First-time buyers who will look for a less expensive home in the same city.

 

Ipsos for the Ontario Real Estate Association Ontario Home Ownership Index

Hot Sales, Sizzling Prices

PhotoHot, sizzling and scorching are a few of the words that applied not only to the weather this past July, but also to the activity in the Toronto housing market!

Despite a decline in the number of new listings added to the market, July brought in the best home sales numbers ever seen for that month with 9,989 sales processed through the Toronto Real Estate Board (TREB)’s MLS® System. Meanwhile, the average price for a detached house in the 416 area code topped $1.2 million, a rise of almost 21 percent over last year at the same time!

“Listings for single-detached and semidetached houses and townhouses continue to be in short supply. The result has been an increase in pentup demand and annual rates of price increases well above the rate of inflation,” Larry Cerqua, TREB President, noted.

Jason Mercer, TREB’s Director of Market Analysis added, “Relatively strong labour market conditions, above-inflation average income growth, and record low borrowing costs have kept many households confident about purchasing a home. As long as very strong buying intentions are up against an extreme shortage of listings, expect home price growth to greatly outpace the rate of inflation.”

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Record-breaking year for GTA home sales capped off by second-best December ever

row-houses-torontoPhoto: Steve Harris/Flickr

By November, 2015 was already a record-setting year for home sales in the Greater Toronto Area, and activity remained strong in the final month of the year with December transactions hitting the second-highest level ever tracked for that month.

Last month, 4,945 GTA existing homes changed hands, pushing the 2015 year-end total of sales recorded through the MLS system to 101,299, well above the previous record of 93,193 set in 2007, according to the Toronto Real Estate Board (TREB).

Last year’s sales tally represents a 9.2 per cent increase over 2014, which the board calls “substantial.” Meanwhile, there was a considerable boost in sales across all major housing types — detached, semi-detached, townhouse, and condo apartment.

The greatest annual sales increase was in the condo-apartment sector. Some 24,731 units of this type sold, good enough for a 12.9 per cent increase over 2014’s sales. Townhomes, including both freehold and condo units, followed as 15,834 of these units changed hands, 9.3 per cent more than the year before.

Jason Mercer, TREB’s director of market analysis, tells BuzzBuzzHome News the percentage jump in condo apartment sales is a matter of limited inventory options for consumers.

“On the low-rise side of the market generally speaking you’re seeing sales are stronger than inventory growth,” he says. “Obviously on a neighbourhood-by-neighbourhood basis that could be different but on the aggregate for the GTA, that’s certainly what’s the trend.”

However, when it comes to overall sales volume, detached homes were in front. Sales of this housing type were up 8.2 per cent in 2015 to a total of 48,657 homes. Meanwhile, semi-detached sales ticked up 5.4 per cent to 10,217 homes.

For all housing types in the GTA last year, the average sale price rose 9.8 per cent to $622,217. Limited low-rise inventory, particularly in the 416, was largely responsible for this increase, although TREB notes “condominium apartment price growth was generally well-above the rate of inflation.”

Year-over-year home sales climbed 11.9 in December, and the greatest activity increase was seen in the townhouse sector. Sales of this housing type were up 18.4 per cent over a 12-month period.

Detached homes remained the costliest in December, with the average price for one in the GTA reaching $825,470, up 11.9 per cent from a year ago, while condo apartments were most affordable going for an average of $378,249.

The market for detached homes got even more expensive in the 416 last month, as the average sale price hit $1,039,638. In November 2015 it was $1,018,621.

Although 2015 is the best year on record for home sales, Mark Maclean, TREB’s president outlined in a statement how previous years could have been further dwarfed.

“If the market had benefitted from more listings, the 2015 sales total would have been greater,” he points out. “As it stands, we begin 2016 with a substantial amount of pent-up demand.”

More Good News For Oshawa – Housing starts trend up

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Housing starts in the Oshawa Census Metropolitan Area were higher last month than the month before, according to new numbers from the Canada Mortgage and Housing Corporation (CMHC).

August saw 2,266 housing starts in the area, compared to 2,117 the month before.

“Over the past five months housing starts in the Oshawa CMA have been robust and trending above their historical 10-year annual average,” states Dana Senagama, CMHC’s principal of market analysis for the GTA, in a news release. “New home construction has picked up in response to rising demand for relatively affordable homes in the Oshawa area.”

The growth in housing starts in Oshawa goes along with a provincial trend, with CMHC reporting 67,113 housing starts in August throughout Ontario, up from July’s 58,700.

“The Ontario residential construction trend in August reached its highest level since 2012. A broad based increase was registered for a second consecutive month as both low density and high density starts registered gains,” states said Ted Tsiakopoulos, CMHC’s Ontario regional economist, in a news release. “While the pace of construction should ease in the coming months from elevated August levels, an improving job market, less choice in the resale market and strong rental demand will continue to support starts activity across the province.”

Durham region attracting investor interest

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The Durham region used to draw a bad rap from investors, but things have changed according to recent stats from the Durham Association of Realtors as its cities are proving to be a hub for investors.

In places like Oshawa, some investors have nearly tripled their investment in a mere decade and profits like that are encouraging a new wave of investors to capitalize on the market with GTA house prices out of reach for many, including millennials and first-time home buyers.

“Oshawa is pretty hot,” Bill Khanna, an investor and owner of the Khanna Group of Co., told CREW “I started investing there about 10 years ago and the prices have almost tripled in that time.”

Last year, the average price for a home in Oshawa grew eight per cent, which is strong sign for equity growth, according to Quentin D’Souza, chief education officer of the Durham Real Estate Investor Club.

“Looking at the properties I have bought over the last four months shows the same type of growth as last year,” he said.

With the population in the Durham region expected to grow around 65,000 in the next five years and to 1 million by 2030, many analysts expect that trend to continue. With a couple university campuses, a growing transit network and more employers setting up shop in the Durham region, it could be an up and coming region for many new investors looking to enter the market, much like Khanna did all those years ago.

According to the latest stats from the Durham Association of Realtors, the average price of a home in the region costs about $452,412 while the average price for a single-detached home will run you about $500,871. What’s more, the average price for a condo or townhouse was $276,855.

“This market is bustling with sales activity which encourages competition between buyers”, said Durham Association of Realtors president Sandra O’Donohue in a release. “The low interest rates ensure affordability and as long as these factors persist, we expect the current market trend to continue”.

“The year-over-year price increase of 14.4 per cent represents the willingness of buyers around the region.”

What Is Your Home Worth

If you purchased your home 10 years ago, the average selling price in Durham Region, June 2005 was $ 252,115

If you purchased your home 5 years ago, the average price in Durham Region, June 2010 was  $ 299,448

In June of this year the average selling price for a home is $ 452,412

This represents an average of about 79% increase in the price of your home.

Homes are selling in the Durham Region for an average of 101% of list price and we are still in a Sellers Market.

Thinking about making a move or want to know what your home is worth, Call Linda Mash @ 905-430-6655.

 

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Canadian home sales up again in April

According to statistics released today by The Canadian Real Estate Association (CREA), national home sales activity posted a third consecutive month-over-month increase in April 2015.

Highlights:

*       National home sales rose 2.3% from March to April.

*       Actual (not seasonally adjusted) activity stood 10% above April 2014 levels.

*       The number of newly listed homes was little changed from March to April.

*       The Canadian housing market overall remains balanced.

*       The MLS® Home Price Index (HPI) rose 4.97% year-over-year in April.

*       The national average sale price rose 9.5% on a year-over-year basis in April; excluding Greater Vancouver and Greater Toronto, it increased by 3.4 %.

The number of home sales processed through the MLS® Systems of Canadian real estate Boards and Associations rose 2.3 per cent in April 2015 compared to March. This marks the third consecutive month-over-month increase and raises national activity back to where it was during most of the second half of last year.