Royal LePage Shelter Foundation Named a National Partner In Sheltersafe.ca

The Royal LePage Shelter Foundation has been named a national partner in Sheltersafe.ca – a new online resource – along with RBC Foundation. Funds will be provided to underwrite the costs of the new website. Sheltersafe.ca uses a clickable map to help women connect quickly with the shelter in their community. In addition to being a safe place to stay, shelters have 24-hour phone lines to support women in crisis.

“Royal LePage has long been known as a leader in real estate industry technological innovation. We felt it was important to apply the same focus to our Royal LePage Shelter Foundation, as another way to show our commitment to helping women and children who have experienced domestic violence,” says Phil Soper, president and CEO of Royal LePage. “The Sheltersafe.ca website is the only one of its kind in Canada and is accessible on all platforms including the web, on smartphones and tablets. In this way, the needs of women living in remote, rural and urban areas will be served.”

Shanan Spencer-Brown, executive director of the foundation, says: “The key to bringing safety to women who have experienced abuse is for them to know that support is available at a local women’s shelter. Sheltersafe.ca will make it easier for them to find this help.”

Source: Remonline.com

Royal LePage Launches #IMHOME Marketing Campaign

Royal LePage has launched an online contest to connect with clients and prospects over the summer and fall months.

Canadians are being asked to take photos of what home means to them and share them on the #IMHOME contest site.

Contestants are entered for a chance to win $25 weekly gift card prizes, $250 monthly gift card prizes or a $2,500 home shopping spree at Hudson’s Bay, Home Depot or Best Buy Canada.

Royal LePage’s brokers and sales reps have been equipped with a variety of digital marketing tools and pre-printed and customizable signs to be used in their client photos.

Clients and prospects can enter their photos in the contest by clicking on a personalized URL they receive from their agent. Or, they can enter at at the #IMHOME contest website and include the agent’s name on the entry form.

The sales rep or broker with the most submissions is eligible to win a grand prize $2,500 Air Canada or Sunwing Vacations travel voucher.

Source: Royal LePage

Royal LePage Announces Major Expansion in British Columbia

Move makes it the largest real estate company on Vancouver Island.

Royal LePage Real Estate Services (Royal LePage) has announced the acquisition of the Coast Realty Group brokerage and property management business which will operate under the Royal LePage banner, effective immediately.

“I am thrilled to welcome the more than 150 highly regarded professionals at Coast Realty to the Royal LePage family,” said Phil Soper, President and CEO, Royal LePage. “This important acquisition is consistent with our goal to give Canadians everywhere access to the superior service that only comes from working with one of our uniquely trained and equipped Realtors®.”

“We have made growth in the all-important British Columbia market a strategic priority and the focus has paid huge dividends. In the last year alone, Royal LePage has experienced incredible momentum across the province, adding 600 Realtors® through acquisition. We are both the oldest and the fastest growing national real estate business in British Columbia and in Canada,” Soper continued.

Established in 1984, Coast Realty Group is a large, independent real estate company operating out of nine offices on Vancouver Island and one office on the mainland in Powell River, British Columbia.

Barry Clark and Travis Carmichael, broker owners of Royal LePage Nanaimo Realty have acquired, and will merge their brokerage with, Coast Realty Group offices in Nanaimo and Ladysmith and on Gabriola Island. The merged brokerage will operate as Royal LePage Nanaimo Realty. Combined, the brokerage has the largest market share in Ladysmith and on Gabriola Island and has almost tripled its market share in Nanaimo, based on units sold.

Clinton Miller, broker owner of Royal LePage Port Alberni-Pacific Rim Realty has acquired the Coast Realty Group offices in Port Alberni and Ucluelet. The Port Alberni office will merge with Miller’s brokerage in Port Alberni, and the Ucluelet office will be a branch office of that location. Both offices will operate as Royal LePage Port Alberni-Pacific Rim Realty. Combined, the brokerage has the largest market share in both Port Alberni and Ucluelet, based on units sold.

Clinton Miller, broker owner of Royal LePage Parksville-Qualicum Beach Realty has acquired the Coast Realty Group offices in Parksville and Qualicum Beach. The merged brokerage will operate as Royal LePage Parksville-Qualicum Beach Realty. Combined, the brokerage has the largest market share in both Parksville and Qualicum Beach, based on units sold.

Gregg Hart, broker owner of Royal LePage in the Comox Valley, has acquired, and will merge his brokerage in Courtenay with the Coast Realty Group office in Courtenay. He has also acquired Coast Realty Group’s offices in Hornby, Denman Island, Cumberland and Union Bay, and will operate them as satellite offices of the Courtenay location. The merged brokerage will operate as Royal LePage in the Comox Valley. Combined, the brokerage has 38 per cent market share in Courtenay, and 80 per cent market share in the areas served by the satellite offices, based on units sold.

Stephen Grant, broker owner of Royal LePage Advance Realty, has acquired the Coast Realty office in Campbell River, and will merge it with his existing Royal LePage brokerage in Campbell River. The merged brokerage will operate as Royal LePage Advance Realty. Combined, the brokerage has the largest market share in Campbell River, based on units sold.

The Coast Realty Group office in Powell River will be converting to Royal LePage in the next 30 to 60 days.

“Attracting the best real estate professionals to better serve our consumer clients is vital to sustaining our leadership position as Canada’s Real Estate Company. With this acquisition, Royal LePage extends our lead as the largest brokerage firm on Vancouver Island,” concluded Soper.

Source: Royal LePage News

June 2015 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, July 7, 2015 – Toronto Real Estate Board President Mark McLean announced that Greater Toronto Area REALTORS® reported 11,992 sales through TREB’s MLS® System in June 2015. This result represented a new record for the month of June and an 18.4 per cent increase over the June 2014 result of 10,132.

“As I begin my term as TREB President, I think it is important to point out that our region continues to grow in response to our diverse economic, ethnic and cultural bases. The GTA consistently receives international accolades as one of the best places in the world to live and do business. As the number of households grow, many of them will take advantage of the diversity of affordable home ownership opportunities that exist in Toronto and the surrounding areas,” said Mr. McLean.

Selling prices were up markedly on a year-over-year basis in June, for all major home types. The MLS® Home Price Index (HPI) Composite Benchmark was up by 8.9 per cent in comparison to June 2014. The average selling price was up by 12.3 per cent over the same period to $639,184.

High-end homes have accounted for a greater share of overall transactions this year compared to last year. This is the key reason why the average selling price has increased at a greater annual rate than the MLS® HPI Composite Benchmark. “It is encouraging to see that new listings have edged upward so far this year, as homeowners have reacted to strong home price growth and have looked to take advantage of increased equity in their homes. However, the annual rate of sales growth continues to far outstrip listings growth, which means that there remains a lot of willing buyers in the marketplace who haven’t found a home that meets their needs. As long as this situation persists, expect home prices to trend strongly upward,” said Jason Mercer, TREB’s Director of Market Analysis.

Source: The Toronto Real Estate Board

June 2015 GTA REALTORS® Release Mid-Month Resale Housing Figures

TORONTO, June 16, 2015 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 5,661 home sales through TREB’s MLS® System during the first two weeks of June 2015. This result represented a 15.7 per cent increase compared to the same period in 2014.

“We continued to see a record pace of home sales in the first half of June, as home buyers remained upbeat on ownership housing as a quality long-term investment. Growth in home sales was widespread, with year-over-year increases for all major home types, suggesting that households from many different age groups and walks of life are active in today’s market,” said Mr. Etherington.

The average selling price for transactions reported during the first 14 days of June was $650,732 – up 12 per cent in comparison to the first 14 days of June 2014. Strong price growth was noted for low-rise home types and condominium apartments.

“The familiar story of strong demand running up against a constrained supply of homes for sale continued to play out in the first half of June. Modest growth in new listings was not enough to offset the pent-up demand that has built during the first half of 2015. As a result, strong competition between buyers continued to result in strong price growth,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source: The Toronto Real Estate Board

Royal LePage Named Canada’s 2015 Outstanding Corporate Citizen

Royal LePage Real Estate Services has been named the 2015 Outstanding Corporate Citizen by the Canadian Franchise Association (CFA). The company received the award for demonstrating sustained support for the local communities through its network of over 600 brokerage offices and for philanthropic innovation on a national scale.

The company’s 16,000 Realtor network has raised more than $20 million through the Royal LePage Shelter Foundation, the largest public foundation in Canada committed to ending violence in the home, and providing support to the women and children who fall victim to it.

Phil Soper, president and CEO of Royal LePage, says, “I am extremely proud of the women and men of Royal LePage, for their ongoing financial commitment to our foundation and for the compassion they show through countless hours of volunteer work for the cause. The good works we do wouldn’t be possible without the immense support we receive from business partners and clients.”

The Outstanding Corporate Citizen Award is presented annually to a franchise system that has demonstrated genuine and ongoing concern and support for a community or social service organization. Royal LePage is the only real estate company to ever win the award.

All administrative costs of the Royal LePage Shelter Foundation are underwritten by the company, ensuring 100 per cent of all donations go to the cause.

Source: Remonline.ca

May 2015 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, June 3, 2015 — Toronto Real Estate Board President Paul Etherington announced 11,706 sales reported by Greater Toronto REALTORS® in May 2015. This result was up by 6.3 per cent in comparison to 11,013 sales reported in May 2014. For the TREB market area as a whole, sales were up for all major housing types. However, in the City of Toronto, where the supply of low-rise listings has been constrained, sales were down for detached homes.

“During my tenure as TREB President over the past year, it is clear to me that ownership housing remains top of mind as a quality long-term investment for GTA households. This is why, despite a shortage of listings in some market segments, we experienced a record number of sales reported through TREB’s MLS® System for the month of May,” said Mr. Etherington.

Record May transactions, coupled with a dip in the number of homes available for sale, resulted in strong price growth. The MLS® Home Price Index (HPI) Composite Benchmark was up by 8.9 per cent year over year in May. The MLS® HPI uses benchmark homes to estimate price growth. This allows for an “apples to apples” comparison of price growth that is not affected by changes in the mix of sales activity.

The average selling price for all home types combined in May 2015 was up by 11 per cent annually to $649,599. The higher annual rate of average price growth compared to the MLS® HPI Composite Benchmark points to the fact that the proportion of high-end home sales continued to be greater compared to 2014.

“Tight market conditions, especially for singles, semis and town homes in the GTA, have resulted in strong price growth regardless of the price metric being considered. With no relief so far on the listings front, expect similar rates of price growth as we move through the remainder of 2015. At this point, a number of months where listings growth outstrips sales growth would be required to satisfy pent-up demand,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source: The Toronto Real Estate Board

May 2015 GTA REALTORS® Release Mid-Month Resale Housing Figures

TORONTO, May 19, 2015 — Toronto Real Estate Board President Paul Etherington announced a 9.6 per cent year-over-year increase in home sales reported by Greater Toronto Area REALTORS® during the first 14 days of May. There were 5,655 sales reported in the first two weeks of May 2015 compared to 5,160 sales during the same period in May 2014. “It is clear that demand for ownership housing remains very strong in the GTA. So much so that, if the pace of sales experienced in the first half of this month is sustained in the second half, we will see record home sales for the month of May,” said Mr. Etherington. The average selling price for transactions reported during the first 14 days of May was $652,882 for all home types combined – up by 10.7 per cent compared to the first two weeks of May 2014. The strongest price growth was experienced in the detached market segment, with the average price up by 13.8 per cent. “The low-rise market segments, including detached home sales, have been the driver of average price growth in the GTA this year. As market conditions have tightened, average price growth has remained very strong. However, while tighter market conditions have been a key factor, so too has been a shift to higher priced homes. Detached sales growth in the City of Toronto, for example, has been strongest for high-end homes. The resulting change in the mix of homes sold has also been an important factor in pushing the average price higher,” said Jason Mercer, TREB’s Director of Market Analysis.

Source: Toronto Real Estate Board

April 2015 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, May 5, 2015 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 11,303 sales in April 2015. This was the highest sales result on record for the month of April and represented a 17 per cent increase in comparison to April 2014. While sales increased strongly on a year-over-year basis, new listings were up over the same period by a more moderate five per cent.

“The record April result clearly points to the fact that a growing number of GTA households view ownership housing as a high quality long-term investment. This is evidenced by the strong sales growth we have experienced in Toronto and surrounding regions for all major home types. First-time buyers and existing homeowners remain very active in today’s market,” said Mr. Etherington.

The overall average selling price, which accounts for all homes reported sold by GTA REALTORS® in April 2015, was up by 10 per cent year-over-year to $635,932. The MLS® Home Price Index (HPI) composite benchmark, which estimates the price of a benchmark home with the same attributes from one period to the next, was up by 8.4 per cent over the same period. The fact that average price growth outpaced growth for the MLS® HPI Composite Benchmark, suggests that a greater share of higher-end homes changed hands this year compared to last.

Irrespective of the indicator used, price growth in the GTA was strongest for low-rise home types. However, the better supplied condominium apartment segment also remained healthy with price growth above the rate of inflation.

“Demand for ownership housing was very high relative to the number of homes available for sale in April. This situation is not expected to change markedly as we move through the remainder of 2015. Until we experience a sustained period in which listings grow at a faster pace than sales, annual rates of home price growth will remain strong,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source: The Toronto Real Estate Board

April 2015 GTA REALTORS® Release Mid-Month Resale Housing Figures

TORONTO, April 16, 2015 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 4,635 home sales during the first 14 days of April 2015. This result represented a 3.4 per cent increase compared to April 2014. New listings over the same period were down by 4.6 per cent year over year.

“Home sales in the GTA continued to increase in comparison to 2014 as a diversity of buyers took advantage of affordable home ownership options. However, in many neighbourhoods, listings remain scarce, particularly for ground-oriented home types like singles, semis and towns. Given the amount of pent-up demand in the market today, sales growth would accelerate further if more homes were listed for sale,” said Mr. Etherington.

The average selling price for April mid-month home sales was $625,121 – up seven per cent in comparison to the same time frame in 2014. Average prices were up for all major home types, both in the City of Toronto and the surrounding regions.

“We are experiencing balanced to seller’s market conditions in most areas and market segments in the GTA. This suggests that home ownership demand is being driven by a wide swath of the population. On one hand, strong growth in condo listings has been met with strong growth in condo sales. On the other hand, we have also experienced growth in higher-end home sales,” said Jason Mercer, TREB’s Director of Market Analysis.

Source: The Toronto Real Estate Board

March 2014 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, April 7, 2015 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 8,940 sales in March 2015. This result represented an 11 per cent increase compared to March 2014. Sales were up for most major home types, both in the City of Toronto and the surrounding regions. New listings were also up, but by a lesser 5.5 per cent, indicating tighter market conditions.

“Home sales increased compared to last year as the cost of home ownership remained affordable, with lower interest rates going a long way to mitigate the effect of rising home prices. However, a substantial amount of pent-up demand remains in place, especially as it relates to low-rise market segments. This suggests that strong competition between buyers, which has fuelled strong price growth so far this year, will continue to be experienced throughout the spring,” said Mr. Etherington.

In March, the average selling price for all reported transactions was $613,933 – up 10 per cent year-over-year. The MLS® HPI Composite Index, which tracks benchmark homes with the same attributes from one period to the next, was up by 7.9 per cent. Average price growth was strongest for detached homes in the City of Toronto, at 15.9 per cent. Over the same period the detached MLS® HPI in the ‘416’ area code increased 7.8 per cent.

The MLS® HPI provides a clear indication of price growth due to market forces – the relationship between demand and supply. Comparing MLS® HPI growth to average price growth provides a sense of the changing mix of home types sold from one period to the next.

“It is clear that seller’s market conditions in many parts of the GTA are driving price growth. However, looking at the detached market segment in the City of Toronto in particular, growth in the average selling price outstripped growth in the MLS® HPI. This points to the fact that the mix of detached homes sold this year compared to last has shifted towards more expensive properties,” said Jason Mercer, TREB’s Director of Market Analysis

 

Source: The Toronto Real Estate Board

GTA Realtors® Donate $485,410 To Shelter Charities

Greater Toronto REALTORS® kick off 2015 by providing grants to 60 different shelter-related charities throughout the Greater Toronto Area.

“For the past seven consecutive years Greater Toronto REALTORS® have voted overwhelmingly in favour of participating in the Ontario REALTORS Care® Foundation’s ‘Every REALTOR®’ campaign,” said Toronto Real Estate Board President Paul Etherington. “The decision, which allowed the Toronto Real Estate Board to donate $485,410 to the Ontario REALTORS Care® Foundation on their behalf, is just one example of our Members’ commitment to fostering quality of life in the communities in which they live and work.”

As a result of the Greater Toronto REALTORS’® donation, grants were provided to the following shelter-based charitable organizations:

  • 360 Kids (Formerly Pathways for Children, Youth, Families)
  • A.I.S. Accommodation, Information & Support
  • Belmont House Foundation
  • C.H.A.T.S. – Community & Home Assistance To Seniors – New
  • CAMH Foundation
  • Casey House
  • Christie Refugee Welcome Centre
  • Covenant House
  • Delisle Youth Services
  • Dorothy Ley Hospice/ Mississauga
  • Elspeth Heyworth Centre For Women- New
  • Emily’s House – New
  • Ernestine’s Women’s Shelter/ Etobicoke
  • Eva’s Initiatives
  • Fife House – New
  • Fred Victor
  • Furniture Bank
  • Good Neighbours Club – New
  • Habitat For Humanity Greater Toronto Area
  • Horizons For Youth
  • Houselink Community Homes
  • Humewood House – New
  • Inn From The Cold
  • Interval House
  • Joanne’s House / Durham
  • Kennedy House Youth Services
  • Kinsa Foundation – New
  • Loft Community Services
  • Matthew House
  • Na-Me-Res
  • Nazareth House
  • New Leaf: Living And Learning
  • Our Place / Mississauga
  • People In Transition “My Sister’s Place”
  • Red Door Family Shelter
  • Regeneration Outreach Community – New
  • Ronald McDonald House Toronto
  • Safehaven – New
  • Sanctuary
  • Sandgate Women’s Shelter
  • Scarborough Women’s Centre
  • Seeds Of Hope Foundation
  • Sherbourne Health Centre
  • Southlake Regional Health Centre Foundation – New
  • St. Matthew’s Bracondale House
  • Street Haven
  • Street Health Community Nursing
  • The Redwood
  • The Salvation Army – Scarborough
  • Toronto Community Hostel- New
  • Toronto Foundation For Student Success
  • Variety Children’s Charity – New
  • Ve’ahavta Foundation
  • Vitanova Foundation
  • Women’s Centre Of York Region
  • Yellow Brick House
  • York Region Centre For Community Safety – New
  • Yorktown Women’s Shelter
  • Youth Without Shelter
  • YWCA Of Greater Toronto

Included among this year’s grant recipients was Habitat for Humanity Greater Toronto Area, which is currently building a home sponsored by Greater Toronto REALTORS® in the York Region municipality of Georgina. Greater Toronto REALTORS® have also participated in the construction of the home, setting one family on the path to a better life.

“Our support of Habitat for Humanity Greater Toronto Area reflects the ideal that everyone should have a place to call their own,” said Mr. Etherington. “As REALTORS® we dedicate our lives to helping people achieve this important goal.”

Recognizing that young people represent the city’s future, Greater Toronto REALTORS® also support a Children’s Breakfast Program operated in conjunction with the Toronto District School Board’s Toronto Foundation for Student Success. Through sponsorship and volunteerism in the program they work to provide children in need with nutritious breakfasts to sustain their learning throughout every school day.

Each year scholarships are also presented to four graduating high school students in the GTA, to be used towards their post-secondary education. In addition, a Ryerson University student is selected annually to receive a summer work placement and award.

“Through the Toronto Real Estate Board, brokerage initiatives and individual volunteerism, Greater Toronto REALTORS® routinely demonstrate that they’re dedicated to helping others, and in today’s globally competitive world, their work to build a better city benefits us all,” said Mr. Etherington.

Source: The Toronto Real Estate Board

December 2014 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, January 7, 2015 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 92,867 residential sales through the TorontoMLS system in 2014, including 4,446 in December. The calendar year 2014 sales result represented a 6.7 per cent increase over the 2013 sales figure of 87,049 and was just short of the record set in 2007.

“TREB’s 2014 sales figures are a testament to the importance Greater Toronto Area households continue to place on home ownership. GTA households realize that home purchases have been a quality long-term investment. While home prices certainly increased substantially in 2014, the purchase of an average priced home remained affordable, in terms of the average household’s ability to comfortably cover their monthly mortgage payments,” said Mr. Etherington.

The average selling price continued to grow on a year-over-year basis in calendar year 2014, with an 8.4 per cent increase over calendar year 2013 to $566,726. This included a seven per cent increase in the December 2014 average selling price to $556,602. Throughout 2014, annual increases in the average selling price and the MLS® HPI Composite Benchmark were consistently reported on a monthly basis for most market segments, from detached homes through to condominium apartments.

“The strong price growth we experienced in 2014 can be explained with two words: listings shortage. The constrained supply of listings was especially evident for low-rise home types like singles, semis and town houses. The number of households looking to purchase these home types increased, while the number of homes from which they could choose decreased. This situation resulted in more competition between buyers and more aggressive offers,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source: The Toronto Real Estate Board

December 2014 GTA REALTORS® Release Mid-Month Resale Housing Figures

TORONTO, December 16, 2014 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 2,496 sales through the TorontoMLS system during the first 14 days of December 2014. This result was up by 1.9 per cent compared to the same period in December 2013. Over the same period, new listings were down by 1.8 per cent year over year.

“Greater Toronto Area households remain upbeat about buying a home, as evidenced by the increase in sales compared to last year. However, many would-be home buyers continue to have problems getting a deal done due to the lack of listings for some home types. The lack of listings has definitely been a drag on sales this year,” said Mr. Etherington.

The average selling price for December mid-month transactions was $565,873, which represented a year-over-year increase of 8.6 per cent. Price growth was driven by the detached market segment in the City of Toronto.

“Sellers’ market conditions remain in place for low-rise home types, including detached and semi-detached houses and townhouses. The condominium apartment segment of the market has been more balanced due to strong project completions, but there has been enough buyer interest to prompt condo price growth above the rate of inflation,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source: The Toronto Real Estate Board

November 2014 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, December 4, 2014 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 6,519 residential transactions through the TorontoMLS system in November 2014. This result was up by 2.6 per cent compared to 6,354 sales reported in November 2013. Through the first 11 months of 2014, total sales amounted to 88,462 – up 6.6 per cent compared to the same period in 2013.

While the trend of year-over-year sales growth continued, the supply of listings remained constrained, with active listings at the end of November down in comparison to last year.

“Even with a constrained supply of homes for sale in many parts of the Greater Toronto Area, buyers continued to get deals done last month. Households remain upbeat about home ownership because monthly mortgage payments remain affordable relative to accepted lending standards. This is coupled with the fact that housing has proven to be a quality long-term investment,” stated Mr. Etherington.

The average selling price for November transactions was up by 7.4 per cent year-over-year to $577,936. The year-to-date average price was up by 8.4 per cent to $567,198. The MLS(R) Home Price Index Composite Benchmark price for November was up by 7.7 per cent compared to a year earlier.

“The robust average price growth experienced throughout 2014 has been fundamentally sound, with demand high relative to supply. Strong competition between buyers has exerted upward pressure on selling prices. Barring a substantial shift in the relationship between sales and listings in the GTA, price growth is expected to continue through 2015,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source:Toronto Real Estate Board

OECD Sees BoC Starting To Hike Rates In May, ‘Steadily Thereafter’

The Organization for Economic Co-operation and Development believes the Bank of Canada will start raising its key interest rate next spring – about six months ahead of what most economists believe and what the central bank has been implying.

In the OECD’s twice-annual Economic Outlook, released early Tuesday, the international economic policy and research body argued that Canada’s low and economically stimulative 1.0-per-cent central bank rate “will need to be gradually withdrawn to counter inflationary pressures,” as its economy grows toward reaching its full output capacity.

“It is assumed in this projection that the first policy rate increase occurs in late May of 2015, and that rates rise steadily thereafter,” the outlook report said.

Most economists don’t expect the first Canadian rate increase until the fourth quarter of 2015, based on the signals central bank officials have been giving in recent months. The bank has said it believes Canada’s output gap won’t close until the second half of 2016, around the same time that inflation has settled around the bank’s target rate of 2 per cent “on a sustainable basis.” And while the central bank has said that it takes six to eight quarters for a change in interest rates to exert its full effect on inflation, senior bank officials have also been clear in recent months that they are leaning toward keeping rates lower for longer in the current cycle, given the numerous risk factors hanging over the uncertain the global economy.

But the OECD argued in its report that while “uncertainty” over the amount of slack in Canada’s economy justifies the Bank of Canada standing pat on rates for the time being, “it will have to start to withdraw stimulus as remaining slack is progressively taken up.”

The OECD projects that Canada’s economy will grow by 2.6 per cent next year and 2.4 per cent in 2016, slightly above the Bank of Canada’s base-case forecasts of 2.4 per cent in 2015 and 2.2 per cent in 2016.

This isn’t the first time OECD economists have been at odds with the Bank of Canada’s interest rate trajectory. A year ago, when the OECD released its fall 2013 Economic Outlook, it called for the central bank to both begin rate hikes earlier and increase rates more steeply than the bank had been signalling. Then, as now, the OECD was concerned about a build-up of inflationary pressures as the Canadian economy picked up momentum.

At the time, the OECD’s concern looked misplaced, given that inflation was below 1 per cent. And, indeed, its call for rate increase to begin before the end of 2014 was, in retrospect, premature.

But 12 months later, Canada’s inflation picture may make the OECD’s argument more compelling. Last week, Statistics Canada reported that the country’s total Consumer Price Index inflation rate in October was 2.4 per cent, its highest since early 2012. The so-called “core” inflation rate, which excludes the most volatile components of CPI and is the Bank of Canada’s key guide to underlying inflation trends, was 2.3 per cent last month, its highest since the end of 2008.

The OECD said Canada’s improving growth next year will be driven by rising export demand, particularly from the United States, which accounts for three-quarters of Canada’s exports. The OECD expects the U.S. economy will grow 3.1 per cent next year, its strongest in a decade and the highest among major advanced countries.

But in a conference call with reporters, OECD chief economist Catherine Mann cautioned against countries counting too much on resurgent U.S. demand to be the catalyst for their export-led recoveries. She noted that U.S. consumption and imports has lagged its typical pace in a recovery, implying that consumers have slowed their spending in the current cycle.

Ms. Mann suggested that rising income inequality may be behind the lack of consumer demand growth in the United States, as median incomes have shown little growth in the post-recession period. Corporate investment has also been stubbornly slow to recover, another drag on imports.

“That says something about the prospects for growth” in the rest of the world, she said. If other countries are waiting for U.S. import demand to lift their economies, she said, “we’re not there for them.”

Source: David Parkinson – The Globe & Mail

Misreading Canada’s Housing Market: No ‘Significant Overbuilding’

Don’t fret, study says

Amid the angst over Canada’s housing market, a new study suggests there’s no “significant overbuilding.”

That’s because demand for housing isn’t being measured properly, today’s report from CIBC World Markets found.

“Ask any real estate developer in any of Canada’s major cities about the risk of overbuilding, and the first line of defence would be immigration and its critical role in supporting demand,” said economists Benjamin Tal and Nick Exarhos.

“It turns out that at least for now, this claim is more valid than widely believed,” they added.

“Not only has the rising share of young immigrants lifted demand for housing, but also official population projections understate the actual number of non-permanent residents in the country by close to 100,000.”

New immigrants, said Mr. Tal and Mr. Exarhos, now account for about 70 per cent of Canada’s population growth. And half of them are in the 25-44 age group, meaning they’re the most likely to start having kids, and thus driving the increase in new households.

“In fact, despite some concerns of overbuilding in the current housing boom, the ratio of housing starts to household formation is not far from its long-run average of 1.03,” the study said.

“The broadly in-line aggregate trend in Canada’s homebuilding means that the eventual wind-down in the current boom won’t have to be as dramatic as feared by some.”

The Bank of Canada and others have pointed to the hot markets of Alberta, Ontario and British Columbia.

But Toronto has cooled and Vancouver has been “broadly flat” for the past years, with construction starts driving higher only in Calgary.

The picture “might be even better than perceived,” the economists said, because non-permanent residents are students, temporary workers and refugees.

That group is growing rapidly but, apparently, isn’t being measured properly where household formation is concerned, and thus the “appropriate level” of homebuilding.

“Many researchers” are using the 2011 census as their base, but that, the economists said, gives a false picture of household formation.

Having said that, it’s going to slow.

“Still, our evidence that recent demographic demand for housing has been undercounted suggests that there has been no significant overbuilding,” Mr. Tal and Mr. Exarhos said, projecting that housing starts will average 190,000 annually for the next couple of years, or some 10,000 more than CIBC’s previous forecast.

Source: Michael Babad – The Globe and Mail

October 2014 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, November 5, 2014 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto Area REALTORS® reported 8,552 sales through the TorontoMLS system in October 2014. This result represented an increase of 7.7 per cent compared to October 2013. New listings were also up on a year-over-year basis, but by a lesser 3.4 per cent.

“Strong growth in sales was evident across all major home types during the first full month of fall. This suggests that there are a lot of households across the Greater Toronto Area who remain upbeat about the benefits of home ownership over the long term, whether we’re talking about first-time buyers or existing home owners looking to change their housing situation,” said Mr. Etherington.

The average selling price for October 2014 transactions was $587,505 – up 8.9 per cent compared to the average of $539,286 reported for October 2013. The MLS® HPI composite benchmark price was up by 8.3 per cent over the same period. Low-rise home types, including singles, semis and town houses, continued to be the driver of year-over-year growth in the average price and the MLS® HPI composite benchmark.

“While sales growth has tracked strongly so far this fall, many would-be home buyers have continued to have difficulties finding a home due to the constrained supply of listings in some parts of the Greater Toronto Area, particularly where low-rise home types are concerned. The resulting sellers’ market conditions are forecast to drive strong price growth through the remainder of 2014 and indeed into 2015 as well,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source: Toronto Real Estate Board

Toronto Realtors® Highlighting Need For Land Transfer Tax Relief During Municipal Election Campaign

With less than one week to go before Toronto voters select a new City Council, Toronto’s REALTORS® continued to raise concerns about the Toronto Land Transfer Tax with Mayoral candidates at TREB’s Annual General Meeting.

“TREB’s municipal election efforts are focused on where the candidates stand on the issues that are a priority to REALTORS® and their clients, especially the Land Transfer Tax. REALTORS® look forward to working with the next City Council to ensure that home buyers and owners are treated fairly,” said Paul Etherington, President of the Toronto Real Estate Board.

“With that in mind, TREB supports Councillor Ford’s commitment to reduce the Land Transfer Tax.  We believe John Tory understands the problems with the Land Transfer Tax and we hope that he will articulate a plan to provide the relief from this tax that voters want.  On the other hand, TREB does not support Olivia Chow’s proposal to increase the Land Transfer Tax. City Hall should be reducing its reliance on this unfair and hurtful tax, not increasing it,” continued Mr. Etherington.

Polling conducted by Ipsos Reid in May 2014, found that a majority (51%) of Torontonians are more likely to vote for Mayoral or Councillor candidates who support reducing or eliminating the Toronto Land Transfer Tax, while only 10 percent would be less likely.

“Toronto voters want municipal election candidates to commit to providing relief from the Land Transfer Tax.  This tax costs the purchaser of an average Toronto home about $8,000, up front, on top of a similar amount for the provincial Land Transfer Tax.  This is a huge cost that hits people when they can least afford it, like when they need to move because their family is growing or later in life as their lifestyle needs, and income, change.  This is an important issue for many Torontonians, and we expect it will influence their voting decisions,” said Etherington.

Independent research has demonstrated that the Toronto Land Transfer Tax is having a negative impact on the City’s economy.  A 2012 study conducted by the C.D. Howe Institute found that the Toronto Land Transfer Tax has dampened Toronto home sales by 16% annually.

A new study, released in April 2014, conducted by Altus Group Economic Consulting, found a significant loss of economic activity in the City of Toronto, and a corresponding loss of thousands of jobs, due to the Toronto Land Transfer Tax.  The study found that, between 2008 and 2013, the Toronto Land Transfer Tax is responsible for

  • a loss of $2.3 billion in economic activity
  • a reduction of $1.2 billion in GDP
  • a loss of 14,934 full time jobs
  • a loss of $772 million in wages and salaries
  • a loss of 38,278 resale home transactions

“The Toronto Real Estate Board looks forward to continuing to highlight the impact of the Toronto Home Buying Tax during the municipal election campaign, and raising this issue, along with the public, with municipal election candidates.  We believe that Torontonians will, once again, expect City Council to take action on this issue,” said Von Palmer, TREB’s Chief Government and Public Affairs Officer.

October 2014 GTA REALTORS® Release Mid-Month Resale Housing Figures

TORONTO, October 16, 2014 — Toronto Real Estate Board President Paul Etherington announced that residential sales reported through the TorontoMLS system during the first 14 days of October were up by 12.2 per cent compared to the same period in 2013. Over the same period, new listings entered into TorontoMLS were up by a lesser 5.9 per cent.

“We have seen a strong hand-off from the third quarter into the fourth quarter, as sales for all major home types were up. This suggests that a great diversity of home buyers remain active in today’s market, from first-time buyers looking for affordable home ownership options through to high income households looking to purchase a luxury property,” said Mr. Etherington.

The average selling price for sales during the first two weeks of October was $583,719 – up by 8.8 per cent compared to the same period in 2013. Overall price growth continued to be driven by the low-rise market segments, including detached and semi-detached houses and townhouses.

“Strong annual rates of price growth for low-rise home types were sustained, as sales growth continued to outpace growth in new listings. Sellers’ market conditions are expected to remain in place for the remainder of 2014 and into 2015 as well. This means that high single-digit rates of price growth for singles, semis and townhouses will likely remain the norm over the next few months,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source: Toronto Real Estate Board

Real Estate Market On Pace For Hot Start To Autumn

There are early indications that September appears to have been another strong month for Canadian home sales.

That is based on data that some local real estate boards have released in recent days about how their housing markets fared last month. The number of existing homes that changed hands in Toronto was up 10.9 per cent from a year earlier, in Calgary it was up almost 12 per cent, and in Vancouver 17.7 per cent. And that’s in comparison to a reasonably strong month: sales in September, 2013, were slightly above the 10-year average for that month.

A comprehensive picture won’t be available until the Canadian Real Estate Board, which represents realtors, compiles all of the local statistics and releases national September data on Oct. 15. Many cities have not released their numbers publicly yet, and the ones that have tend to be in some of the country’s stronger housing markets. Quebec and the Atlantic region, where more markets are struggling, are not represented below.

But the strength of Calgary, Toronto and Vancouver’s housing markets tends to pull up the national averages, and so the numbers here suggest that the national figures will point to a market that still has momentum.

CALGARY

-Sales were up almost 12 per cent in September from a year ago. The local real estate board says the unexpected strength came from a surge in condo and townhouse sales.

-Condo sales so far this year are 21 per cent higher than during the same period last year, while the number of sales of detached homes has risen by just 7 per cent. Affordability is driving the shift. Two years ago, 44 per cent of the detached houses that sold from January through to the end of September went for less than $400,000, according to the real estate board. So far this year only one quarter of the houses have sold for less than that.

-The average price of a detached house in the city was $567,653 in September, up 10.81 per cent from a year earlier. The average price of a condo was $326,264, up 9.21 per cent. For townhouses it was $352,813, up 4.21 per cent.

-The average length of time it takes to sell a home continues to tick downwards. Year-to-date the average number of days a home is on the market before it sells (for all types of homes) is 34, down from 42 in the same period last year.

EDMONTON

-Sales were up 9.19 per cent from a year earlier.

-The average selling price of a detached home was $435,584, up 6.92 per cent, and the median price of a detached home was $405,000, up 6.91 per cent. The average price of a condo was $254,494, up 4.85 per cent, and the median price was $232,000, up 2.65 per cent.

-The average selling price of all types of properties was $372,673, up 6.37 per cent.

-The average number of days that homes were on the market before selling was 49, the same as in August but down from 54 days a year ago. The sales-to-listings ratio was 72 per cent, up from 67 per cent in August.

TORONTO

-Sales were up 10.9 per cent from a year earlier. So far this year sales in the city are 6.9 per cent higher than during the same period last year.

-The average selling price was $573,676, up 7.7 per cent from a year earlier. The average selling price year-to-date is $563,813, up 8.5 per cent from last year.

-“If the current pace of sales growth remains in place, we could be flirting with a new record for residential sales reported by (Toronto Real Estate Board) members this year,” TREB’s director of market analysis, Jason Mercer, stated in a press release.

-The average selling price of detached homes in the downtown area covered by the 416 area code was $951,792, up 11.5 per cent from a year earlier. For condos in the same area it was $395,505, up 9.2 per cent.

VANCOUVER

-Sales were up 17.7 per cent from a year earlier, and 5.4 per cent from the prior month. September’s sales level was 16.1 per cent above the 10-year average for that month, making it the third-highest September in that period.

-The benchmark price of all types of properties in Metro Vancouver was $633,500, up 5.3 per cent from a year earlier. For detached homes it was $990,300, up 7.3 per cent, townhomes were $477,700, up 4.2 per cent, and apartments or condos were $378,700, up 3.3 per cent. Similar to the Toronto market, detached home prices are rising more quickly due to a shortage of land to build new ones on.

-Sales of detached homes were up 24.1 per cent, sales of apartments or condos were up 16.7 per cent, and sales of attached properties were up 5 per cent.

-“September was an active period for our housing market when we compare it against typical activity for the month,” Ray Harris, the president of the Real Estate Board of Greater Vancouver, stated in a press release.

VICTORIA

-Sales were up 16 per cent from a year ago. “We haven’t seen sales like this in September since 2009,” Victoria Real Estate Board president Tim Ayres stated in a press release.

-The local real estate board surmises that buyers and sellers are feeling more comfortable about doing deals because prices are more stable and predictable now.

-The benchmark price of a house (the benchmark seeks to be a more apples-to-apples gauge than the average price) in central Victoria was $556,200, up from $550,900 a year earlier. For the entire Greater Victoria area it was $492,200, up from $484,800. The benchmark price of a condo in the Greater area was $287,100, up from $283,900. For a townhouse it was $401,500, up from $400,000.

Source: Tara Perkins @ The Globe & Mail

September 2014 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, October 3, 2014 — Toronto Real Estate Board President Paul Etherington announced that there were 8,051 transactions reported through the TorontoMLS system in September 2014. This result represented a 10.9 per cent increase compared to September 2013. On a year-to-date basis through the first three quarters of the year, sales were up by 6.9 per cent annually to 73,465.

“Despite a persistent shortage of listings in some market segments, we have experienced strong growth in sales though the first nine months of 2014. This is evidence that GTA households remain upbeat about purchasing a home. The majority of home buyers purchase a home using a mortgage. The share of the average household’s income dedicated to their mortgage payment remains affordable, which is why buyer interest has remained solid,” said Mr. Etherington.

The average selling price for September 2014 transactions was $573,676 – up by 7.7 per cent compared to the same period in 2013. Average year-over-year price growth was strongest in the City of Toronto, both for low-rise home types like detached and semi-detached houses and for condominium apartments. The average selling price year-to-date was $563,813 – up 8.5 per cent compared to the first nine months of 2013.

“If the current pace of sales growth remains in place, we could be flirting with a new record for residential sales reported by TREB Members this year. On the pricing front, the multitude of willing buyers in the marketplace coupled with the short supply of listings will continue to translate into very strong annual rates of price growth in the fourth quarter,” said Jason Mercer, TREB’s Director of Market Analysis.

 

Source: Toronto Real Estate Board

September 2014 GTA REALTORS® Release Mid-Month Resale Housing Figures

TORONTO, September 16, 2014 — Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 3,297 sales through the TorontoMLS system during the first 14 days of September 2014. This result represented an 8.3 per cent increase compared to the same period in 2013. Year-to-date sales through September 14, at 68,731, were up by 6.6 per cent compared to the same period in 2013.

“The sales result for the first two weeks of September showed strong growth for most major home types, indicating that home buyers continue to find homes that meet their needs and budgets. With a lot of buyers active in the marketplace relative to the number of homes for sale, average selling prices were up strongly for most low-rise and high-rise home ownership options,” said Mr. Etherington.

The average selling price for September mid-month sales was $555,890, which represented an increase of 8.1 per cent compared to the average price for the first two weeks of September 2013. Average price growth was strongest for single-detached and semi-detached homes.

The average year-to-date selling price was up by 8.5 per cent year-over-year to $562,244.

“Average prices in the low-rise market segments, including singles, semis and towns, continued to experience the impact of strong competition between buyers. It is also clear that while the condo apartment market segment remains comparatively better supplied, there are enough buyers relative to available condo listings to prompt very strong average price growth for this type of ownership housing as well,” said Jason Mercer, TREB’s Director of Market Analysis

 

Source: Toronto Real Estate Board

August 2014 GTA REALTORS® Release Monthly Resale Housing Figures

TORONTO, September 4, 2014 — Toronto Real Estate Board President Paul Etherington reported 7,600 sales through the TorontoMLS system in August 2014. This result was up by 2.8 per cent compared to 7,391 transactions reported in August 2013. Year-to-date sales through the end of August amounted to 65,454, which represented an increase of 6.5 per cent compared to the same period in 2013.

“The last full month of summer ended on a high note. As we look toward the fall market, I expect that demand for ownership housing will remain strong. Home buyers will continue to benefit from a diversity of affordable home ownership opportunities throughout the GTA. The fact that sales were up for all major home types in August suggests that first-time buyers and existing home owners remain very active in today’s marketplace,” said Mr. Etherington.

The average selling price in August 2014 was $546,303 – up 8.9 per cent in comparison to the average of $501,677 reported in August 2013. The year-to-date average price through August was $562,504, which represented an increase of 8.5 per cent in comparison to the same period in 2013.

“The number of listings in August was down in comparison to last year, while the number of sales increased. This means that sellers’ market conditions remained in place with a lot of competition between buyers. This is why we continued to see strong price growth last month. Looking forward, if sales growth continues to outstrip listings growth, the average selling price should continue to increase on a year-over-year basis,” said Jason Mercer, TREB’s Director of Market Analysis

 

Source: Toronto Real Estate Board