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President's Toronto SUN Column

TREB President's Column as it appears every Friday in the Toronto Sun's Resale Homes and Condos section.


Expect Number Of New Listings To Increase

June 22, 2012 -- May was another active month for resale housing transactions throughout the Greater Toronto Area.  But, even more importantly, May will likely turn out to be the turning point for the listings situation (i.e. lack of thereof) that has been such a big story in the GTA housing market over the past year.

With 10,850 homes changing hands in May, sales were up 11 per cent over May 2011.  Sales growth was stronger in the ‘905’ regions compared to the ‘416’ – 14 per cent versus 11 per cent respectively.  The fact that sales have been growing at a quicker pace outside of the ‘416’ area code is not surprising in light of a recent Ipsos Reid poll suggesting the City of Toronto’s land transfer tax has prompted many buyers to search for their next home outside of the city.

Tight market conditions continued to result in strong average price growth in May.  The average selling price in the ‘905’ regions grew by over seven per cent year-over-year to $484,840.  In the City of Toronto, the average selling price was up by six per cent to $568,768.

It should be noted, however, that May statistics indicate that tight market conditions may start to ease in the second half of 2012 and even more so in 2013 because of stronger growth in listings.

The number of new listings, at 19,177, was 20 per cent greater than in May 2011.  This strong year-over-year growth rate for listings far outstripped annual growth in sales, which means the May market was better supplied this year compared to last.  Homeowners were reacting in greater numbers to the strong home price growth experienced in the GTA over the past year.  If growth in listings continues to outpace growth in sales moving forward, competition between home buyers will ease resulting in less upward pressure on selling prices.

The GTA housing market has received a lot of attention over the past year.  Some commentators have suggested that because home prices have grown at a quicker pace than income we should expect prices to fall considerably over the next few years.  Many of these analyses fail to consider the housing market from an affordability perspective.  What needs to be considered is whether or not a household earning an average income in the GTA can afford the mortgage payment, property taxes and utilities associated with the purchase of an average priced home.

When we look at the market in this way we find that over the better part of the last decade, including this year, the share of income going towards major recurring home ownership payments has been in line with underwriting guidelines followed by major lenders and CMHC.  Low borrowing costs have largely mitigated strong price increases over the past few years.

Looking forward, expectations for interest rate hikes have moderated considerably over the past month, with increased tumult in Europe.  Whereas a month ago the expectation was for the Bank of Canada to start raising rates in the fall of this year, it is now more likely that hikes will be on hold until sometime in 2013.

While the monthly cost of home ownership has remained affordable, home buyers looking to purchase in the City of Toronto continue to face a large financial hurdle: the upfront cost associated with the City of Toronto’s land transfer tax.  Greater Toronto REALTORS® see the repeal of the Toronto land transfer tax as another key factor that would benefit our local economy. A recent survey conducted by Ekos Research, which polled 9,500 City of Toronto residents, found that a majority in 86 per cent of City wards want to see the tax repealed.

To effect this change we have launched a new website where you can learn more about our efforts and take action by telling your City Councillor that you oppose the Toronto land transfer tax. I encourage you to visit www.LetsGetThisRightToronto.ca because helping Toronto reach its full potential is in the best interest of us all.

Follow TREB on www.twitter.com/TREBhome, www.Facebook.com/TorontoRealEstateBoard and www.youtube.com/TREBChannel

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Archive
Note: All links are PDF files

 2012
June 22 Expect Number Of New Listings To Increase
June 15 Working To Repeal The Land Transfer Tax
June 1 TREB Announces Commercial Building Awards
May 25 Serving Others Is The Highest Honour Of All
May 18 Standing up for Homeowners’ right to privacy
May 4 REALTORS® offer key to a better life
April 20 Affordable Homeownership Benefits Us All
March 30 Keep Your Home Insurance Costs In Line
March 2 It Pays To Lower Your Expectations
February 24 Homes Continue To Sell Quickly
February 17 New Tool Measures Price of Home
February 10 New Building Awards Will Benefit Our City
January 27 Tightening market will mean higher prices
January 13 Expect demand to be strong in 2012
 2011
December 30 Finishing the year on a high note
December 8 It’s Time to Lend a Helping Hand
November 25 Helping those less fortunate
November 18 Building up to National Housing Day
October 28 First-Time Buyers Have Lots Of Options
October 21 Using A Realtor To Buy A New Home
October 14 Celebrating Many Years Of Service
October 7 Renovation Rebate Would Benefit Homeowners
September 30 Land Transfer Taxes Unfair to Home Buyers
September 23 Energy Rebates Should Be A Priority
September 16 Tell City Hall to Target Waste, Not Home Buyers
September 2 Realtors ride for a great cause
August 26 Strong economy sees numbers boosted
August 19 New Web Site Easy to Use
August 15 Learn to keep termites at bay
August 9

Public and Businesses See Eye-to-Eye on Municipal Finance Issues

July 22 Know when it's time to renovate
July 8 Treat first-time buyers fairly
June 17 Time To Repeal The Land Transfer Tax
June 10 Take a tour of the virtual office
June 3 Parking red tape should be streamlined
May 27 Helpful Advice Is Keystrokes Away
May 20 Taking a walk through REALTOR® QUEST
May 13 The social side of real estate
May 6 Staying on top of municipal issues
Apr. 29 Expect demand to remain strong
Apr. 22 Know what to look for in a condo
Apr. 15 Choosing between new and resale
Apr. 8 Learn to use the tools of the trade
Apr. 1 Expect demand to remain healthy
Mar. 25 City needs to cut parking red tape
Mar. 11 Select the right neighbourhood
Mar. 4 Consider investing in a fixer-upper
Feb. 25 Expect homes to remain affordable
Feb. 18 REALTORS® help clarify parking rules
Feb. 11 Learn the benefits of going online
Feb. 4 Increase the value of your resale
Jan. 28 Know the value of a REALTOR®
Jan. 21 Move is on to repeal an unfair tax
Jan. 14 Choose a home that fits your style
 2010
Dec. 17 Working Hard to Make a Difference
Nov. 19 Sorting out HST misconceptions
Nov. 12 Give more thought to going green
Nov. 5 All signs point to a healthy market
Oct. 29 Green your home and save money
Oct. 15 Keeping your best interest in mind
Oct. 8 All signs point to a healthy market
Oct. 1 Condos have become a way of life
Sept. 24 Setting the HST record straight
Sept. 17 Coming to 'Terms' with Real Estate
Sept. 10 Growing Up and going green
Sept. 3 Keeping your best interest in mind
July 16 Charity begins and ends at Home
July 9 Saving the HST with Resale Housing
July 2 Recognizing Our Volunteer Efforts
June 25 Getting to know all your options
June 18 Embracing Diversity in the GTA
May 28 REALTORS® need to know quite a lot
May 14 April transactions nearly met record
May 7 Shopping for the best deal in Town
Apr. 30 The Hidden costs of moving
Apr. 23 Knowing all the local options
Apr. 16 Many ways to cut energy costs
Apr. 2 It pays to renovate before you sell
Mar. 26 Working in your best interests
Mar. 12 Growing Tax burden is taking its toll
Mar. 5 A Professional Touch
Feb. 26 Registry links buyers to homes
Feb. 19 Mitigating the HST tax threat
Feb. 12 Expect strong start to 2010 to continue
Feb. 5 Helping those in desperate need in Haiti
Jan. 29 Having a green home provides savings and peace-of-mind
Jan. 22 REALTORS® assist with Rentals Too
Jan. 15 REALTORS® Give Back
Jan. 8 Why our REALTORS® are the envy of the world
 2009
Dec. 11 Making the jump to home ownership
Dec. 4 Your kind of town, Toronto is
Nov. 27 Emerging Neighbourhoods
Nov. 20 Mid-Month market report: The economic recovery continues
Nov. 13 There's More to us than MLS
Nov. 06 Fix-up Frenzy
Oct. 30 A Taxing Issue: Let's call on future mayor to roll back LTT
Oct. 23 Where to buy
Oct. 16 Value Added
Oct. 10 Market report
Sept. 25 NO sense of harmony
Sept. 18 Vertical City - The GTA is growing up and going green
Sept. 11 Go Site-seeing
Sept. 04 A changing shade of grey
August 28 Gateway to the World
August 21 Vertical City – Toronto is Growing Up
August 14 A new way to hunt for homes
August 7 Home Away from Home
July 31 The Canadian Dream
July 24 Move or Improve
July 17 Weathering the Storm
July 10 Mid-year market report
June 26 Making the Right Connections
June 19 Condo City
June 12 More co-op on grow ops
June 5 Investing in Real Estate
May 29 The News is Good
May 22 Ownership Housing Plays Important Role
May 15 REALTORS® Invest Time to Improve
May 8 REALTORS® take message to Ottawa
May 1 REALTOR® Education
Apr. 24 Community Spirit Alive
Apr. 17 Tech tools of the trade
Apr. 10 Public Wants Toronto Land Transfer Tax Repealed
Apr. 03 Invest In Future
Mar. 27 Agents of Change
Mar. 20 Harmonized Sales Tax Would Hurt Home Buyers
Mar. 13 Actions Speak Louder than Words on Affordable Housing
Mar. 06 Market review: 2009 so far
Feb. 20 Scholarships offered by real estate board
Feb. 13 Make Home Owners Priority of City Budget
Feb. 06 Federal Budget Helps Home Buyers and Owners
Jan. 30 January's Resale Housing Market Report
Jan. 23 TREB to Feds: More help to Homebuyers
Jan. 16 Lifestyles in the 416 and 905
 2008
Dec. 19 Be prepared for closing costs
Dec. 12 Toronto Land Transfer Tax Costs City's Economy $170 million
Dec. 5 Understand your privacy and rights
Nov. 28 Seasons of Real Estate
Nov. 21 Setting the Stage for a Sale
Nov. 14 The Ins and Outs of Inspections
Nov. 7 Outlook still good for GTA
Oct. 31 Taking Advantage of Taxes
Oct. 24 The Ins and Outs of Insurance
Oct. 17 Fighting Back Against Fraud
Oct. 10 Local Market Holds Steady
Oct. 3 Show Good Form During a Deal
Sept. 26 Using Equity to Your Advantage
Sept. 19 Choices Abound but Choose Carefully
Sept. 12 GTA Housing Market Stable
Sept. 5 Points to Ponder This Fall
Aug. 29 Don't Take This For Granted
Aug. 22 A Helping Hand
Aug. 15 A Market Report for July
Aug. 8 A Primer on Attracting Buyers
Aug. 1 Returns on RENOs
July 25 New Federal Mortgage Rules
July 18 Revitalizing the Big Smoke
July 11 Condos Changing the GTA
July 4 Feeding the City's Future
June 27 Recognizing Volunteers
June 20 Buyers, Be Aware of the New Rules
June 13 The Market Remains Healthy
June 6 Reasons to Pick a REALTOR®
May 30 The Power of MLS
May 23 Greening Up Resale Homes
May 16 A Quest for Knowledge
May 9 Lobbying Goes a Long Way
May 2 Toronto Compared
Apr. 25 Beware of Hidden Development Charges
Apr. 18 From the President
Apr. 11 Guarding Against Grow-Ops
Apr. 4

The Importance of the Budget

Mar. 28 Another Way to Invest in Real Estate
Mar. 21 Federal Budget Misses Opp
Mar. 14 Prepare Now for a Spring Move
Mar. 7 Remember to Budget for City's Budget
Feb. 29 From the President