Real estate access: denied
The Toronto Real Estate Board (TREB) defends denying listings to rogue realtor, while realtor claims it did so out of fear
by Tony Wong as published in the Toronto Star:
When Fraser Beach received a call from a Bell Canada subsidiary about starting a new real estate company three years ago, he had no idea the unlikely partnership would land him in a high-stakes court case that could dramatically change the landscape of Toronto's real estate market.
The drama playing out on the seventh-floor courtroom at the Ontario Superior Court of Justice this week has pitted the realtor against Canada's largest real estate board in a landmark battle that some say could open the doors to further competition between realtors in the future and result in lower prices for consumers.
Beach, 65, a long-time Toronto-area broker, has taken the Toronto Real Estate Board to court after the organization cut off his Multiple Listing Service access in May of 2007, three days after he launched his website. The MLS database is a list of properties for sale. The realtor argues that the board shut him down when they learned his website would offer lower prices and that his partner was BNV Real Estate, a subsidiary of telecom giant Bell.
"Instead of embracing change, the Toronto Real Estate Board decided to shut it down," Beach's lawyer Randy Pepper charged this week. "They cut off access to Mr. Beach's MLS system, which is the lifeblood of any realtor."
TREB lawyer Bill Sasso called the new venture "a dramatic event. A significant change in the way business was being conducted," which left the organization with no choice but to shut down the access of a member for the first time in their history. The board is arguing that they didn't block Beach and Bell for competitive reasons, but simply because the realtor did not follow membership rules and, they say, downloaded listings without permission.
"TREB viewed this as a serious breach of security and a singular and unprecedented threat to TREB's most valuable asset," Sasso said in his closing submission. "The decision to suspend Beach's access to the TREB system was a significant decision which TREB took very seriously."
The case wrapped up this week, but both sides are awaiting a decision by Justice David Brown. That decision, expected before the end of summer, is bound to have repercussions on the board and its 28,000 members in the future.
If Beach wins, it might open the doors to other companies who use technology to lower real estate fees. This is already happening in the United States, where realtor associations have been under fire by government authorities for having anti-competitive rules.
In the U.S., Internet-based brokers have historically been blocked from accessing MLS databases associated with the National Association of Realtors. In a September 2005 lawsuit by the Justice Department, government lawyers said the association "adopted policies that restrain competition from innovative real estate brokers."
Sites such as BNV's now-defunct realestateplus.ca (which has since been sold to a division of Torstar Corp., owners of the Toronto Star) allow consumers to peruse listings from home while typically charging discount fees. A settlement south of the border was reached last year as a result of the suit, with a copy of the U.S. District Court decision submitted as evidence by Beach's lawyers.
"Like TREB, the National Association of Realtors did not adopt an enlightened response either, which led to the decision to open up the MLS system," Pepper said to Justice Brown.
Real estate insiders say that it is only a matter of time before technological change forces realtor associations to open their databases, with Canada typically a few years behind the U.S. The fact that the Canadian federal Competition Bureau was monitoring the case over the last two weeks suggests that they are keeping a close eye on developments in Toronto.
The competition bureau already has an ongoing investigation into the Ottawa-based Canadian Real Estate Association for enacting new rules in 2007 that some say are anti-competitive and could hurt consumers.
Certainly, the presence of discounters in the marketplace has been a thorny issue with real estate boards across Canada.
Internet-based realtors are already making inroads into the Canadian market, many offering a low commission structure or a flat fee for services. Beach's lawyers allege their client's website was no different than other realtor websites that allow consumers to request information.
But this is the first time a discount broker has had access blocked. Beach's lawyers say the real reason TREB cut their client off was because they were "frightened" of his partner – a technologically savvy heavyweight intent on lowering commissions.
"Bell posed a huge competitive threat to the status quo," Pepper argued.
TREB president Maureen O'Neill says that's not true. She testified that BNV was in blatant violation of user agreements by having uploaded data without permission.
"There was a concern of a potential liability for TREB and our members because our clients did not give permission for the use of their listings other than on the TREB website and the Multiple Listing Service," O'Neill said.
When Bell first contacted Beach more than three years ago the Ajax realtor was operating an obscure Internet-based discount brokerage that offered total commissions as low as 0.5 per cent, compared with the standard 2.5 per cent for a listing broker. The buyer's agent would typically get their piece of the cut, or 2.5 per cent, meaning the total commissions through Beach's operations would be about 3 per cent, compared with an industry standard of 5 per cent.
The lowball pricing on the website attracted the attention of Bell, who wanted in on the real estate sector, seeing opportunity in a business that could potentially be worth more than a billion dollars in revenue annually.
According to BNV's business plan, the telecom company intended to invest $29 million in start-up costs with a "lower cost offering" service that would charge consumers 25 per cent less than the standard commission rate currently offered by realtors.
Bell saw synergies in real estate, and hoped to partner content and traffic from its Sympatico/MSN real estate website while using mapping technology from partner Microsoft and editorial from their Bell Globemedia division to create a major enterprise to compete against traditional brokerages.
BNV saw an opportunity to make money because the realtor's "service remained essentially the same, but the prices paid for them by Canadians have soared," according to the company's business plan, entered as evidence in the lawsuit. In its plan, BNV said standard real estate company operating profits were as high as 35 per cent, with annual fees and commissions in Canada nearing $8 billion annually because of the "anti-competitive policies of a cartel."
However, TREB's Sasso noted that BNV may already have known it was crossing the line with an "aggressive" business plan that anticipated the possibility that regulatory agencies may try to block Bell from becoming licensed due to a "perceived" violation of MLS rules.
"TREB takes no position or interest in the business models of its members, provided that members abide by various TREB agreements," Sasso said. "TREB does not set the amount of commissions or the manner in which they are charged. TREB's policy is that this should be left entirely up to the market."
Key to TREB's argument is that, under the membership agreement, "members shall not question or dispute any of TREB's right, title, ownership, licence, intellectual property and or other interests in the MLS database," something that Justice Brown will have to consider in his final deliberation.
The telecom company is not a plaintiff in the suit and declined to comment. A spokesperson said the company decided to divest itself of BNV because it "didn't fit with the core business."
Beach isn't asking for monetary damages, but simply wants his access to the MLS system reinstated and a declaration that TREB was not entitled to terminate his access.
The case has an interesting back story – one of the lawyers representing Beach, Lawrence Dale, was also a principal in discount brokerage Realtysellers Ltd. Realtysellers closed its doors in 2006 after arguing that the TREB was being anti-competitive by keeping their ads out of a board-owned newspaper. The board settled out of court for an undisclosed sum believed to be in the millions.
July 4, 2009 in Toronto Real Estate Board | Permalink | Comments (1) | TrackBack
Toronto Real Estate Board:
Greater Toronto Realtors reported 4,120 resale housing transactions in February
Toronto Real Estate Board Members reported 4,120 sales in February 2009 compared to 6,015 sales recorded in February 2008. The average home price was $361,305 last month compared to $382,048 during the same month last year. “A considerable number of transactions continued to take place in February 2009. Motivated buyers and sellers, who were aware that market conditions changed over the past few months, were able to negotiate transactions acceptable to both parties,” said Toronto Real Estate Board President Maureen O’Neill.
On a month-over-month basis, sales and average price were above January levels of 2,670 and $343,632 respectively. The housing market is seasonal. Traditionally, in the first half of every year, sales and average price climb to their highest levels in late spring before trending lower from July onward.
“While the economic downturn has had an impact, the GTA housing market is resting on a solid foundation. Current home prices and mortgage rates suggest that GTA homes have become more affordable on average,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “A greater number of home buyers could take advantage of this affordability once their positioning in the economy becomes more certain.”
Typically the spring real estate market tends to experience more activity and with the Canadian economy experiencing a period of low mortgage rates and strong immigration, this trend could continue. According to Statistics Canada, Canada welcomed 247,202 permanent residents in 2008, 70,000 more than in 1998 and well within the government’s planned range of 240,000 to 265,000 new permanent residents for 2009.
The TREB President pointed out that Greater Toronto REALTORS® are an integral part of the real estate transaction process. “TREB Members are uniquely positioned to help home buyers and sellers adapt to changing market conditions,” added Ms. O’Neill. “In addition, TREB continues to advocate public policies that do not threaten affordability but support home ownership in the GTA such as lower taxation and less regulation.”
See full Toronto Real Estate Board report »
March 5, 2009 in Toronto Real Estate Board | Permalink | Comments (7) | TrackBack
Toronto Real Estate Board reports:
GTA sales down 35%; Toronto down 38%
Toronto Real Estate Board Members reported 5,155 sales in October, down 35 per cent from the 7,915 sales reported in October of 2007, and also down 25 per cent from the 6,876 sales reported during October 2006. Within the City of Toronto, 2,136 sales were recorded. This was down 38 per cent from the 3,455 sales recorded in October of last year. In the 905 suburbs, however, the 3,019 sales recorded were down 32 per cent from October 2007's figure of 4,460.
GTA-wide, prices declined 10 per cent to $352,974 from last October's average of $394,646. They were down one per cent over the average recorded in October 2006 of $356,423. As with sales, price declines differed according to region.The City of Toronto average was $376,896, down 13 per cent from the $434,022 recorded during the same month in 2007, and down about three per cent from the $386,807 recorded in October 2006. Meanwhile, the average for the City's 905 suburbs was $336,049.This is down eight per cent from the $364,142 recorded last October, and up one per cent from the $333,166 recorded in October 2006.
Breaking down the total, 2,064 sales were reported in TREB's 28 West districts and averaged $335,329; 892 sales were reported in the 14 Central districts and averaged $450,437; 946 sales were reported in the 23 North districts and averaged $382,032; and 1,253 sales were reported in TREB's 21 East districts and averaged $290,719.
NEIGHBOURHOOD CORNER
Agincourt
The dominant house types sold within Agincourt (parts of districts E05 and E07) are detached and semi-detached.ÊFor detached homes, the average was $403,597 in 2008 to-date, up seven per cent over last year's figure of $376,047. Semis averaged $321,943, up three per cent over the $313,337 recorded during the first ten months of 2007.
November 5, 2008 in Toronto Real Estate Board | Permalink | Comments (7) | TrackBack
Toronto Real Estate Board's AGM
A panel of real estate industry experts says: The resale housing market in the Greater Toronto Area is still heathy.
More than 1,100 Greater Toronto Area realtors gathered to hear some of Canada's top real estate industry experts talk about the future of the housing market at the Toronto Real Estate Board's 88th Annual General Meeting on October 27th.
Much of their discussion was focused on current market conditions, with panelists attributing a recent dip in the Toronto area resale housing market to waning consumer confidence.
"People are mislead by the media," said Living Realty's Stephen Wong. "We don't have a problem; it's being self-inflicted."
Panelists also agreed that while a return to robust conditions may not be seen until 2010, the market continues to be balanced and supported by the economic fundamentals of strong employment and immigration, and historically low interest rates.
In addition, Royal LePage's Phil Soper noted that unlike other major cities, the GTA has not experienced artificially inflated house prices.
"We're going through a time of general economic malaise but it is not going to be prolonged and in the housing market we're not going to see a reset because it wasn't off in the first place," he said.
TREB President Maureen O'Neill's speech focused on raising the bar with respect to professionalism, an idea that was echoed by Michael Polzler of RE/MAX Ontario-Atlantic.
"This is a time for professional realtors who know the business and all aspects of it, to lead people through complicated transactions," he said.
Panelists concluded their discussion by pledging to support organized real estate's lobbying efforts against unrealistic regulatory expectations and unfair taxes, like the Toronto Land Transfer Tax.
"This event's incredible turnout demonstrates realtors genuine desire to continuously improve in order to provide the highest level of service to their clients," said Ms. O'Neill. "We're also delighted to have received the full support of Canada's largest real estate companies as we continue our efforts to advocate on behalf of GTA property owners."
The panel on the future of real estate included:
Don Lawby, President and Chief Operating Officer
Century 21 Canada Limited Partnership
Gary Hockey, President
Coldwell Banker Canada
Kimberly Fleming, Regional Director, Canada
Prudential Real Estate Affiliates
Howard Drukarsh, Vice-President
Right at Home Realty Inc.
Phil Soper, President and Chief Executive Officer
Royal LePage Real Estate Services Ltd.
Stephen Wong, Chairman
Living Realty Inc.
Michael Polzler, Regional Director and Executive Vice President
RE/MAX Ontario-Atlantic Canada
Andrew Cimerman, Chief Executive Officer and Founder
HomeLife Realty Services
October 30, 2008 in Toronto Real Estate Board | Permalink | Comments (10) | TrackBack
Toronto Real Estate Board:
GTA Resale Housing Market Measured in September
The Greater Toronto Area resale housing market continued at a measured pace through September, Toronto Real Estate Board President Maureen O'Neill announced today. With 6,424 homes changing hands last month, activity in the GTA declined six per cent compared to the 6,866 sales that took place in September 2007 and declined three per cent compared to the 6,622 transactions that were recorded two years ago.
In the City of Toronto sales were less robust. The 2,546 transactions recorded last month declined 11 per cent from the 2,854 sales in September 2007 and declined five per cent from the 2,680 sales recorded in September 2006. Sales increased six per cent between September 2006 and September 2007.
"We remain concerned about the Land Transfer Tax in the City of Toronto," said Ms. O'Neill.
In the 905 Region, the 3,878 sales recorded last month were within three per cent of September 2007's 4,012 transactions, and within two per cent of September 2006's 3,942 sales. Sales in this region increased two per cent between September 2006 and September 2007.
From a year-to-date perspective, the GTA resale housing market has declined 14 per cent from the 73,827 transactions recorded a year ago. To date, there have been 63,595 sales through the TorontoMLS system this year. In the City of Toronto year-to-date sales have declined 16 per cent from last year's figure of 30,059 to 25,257 transactions this year. In the 905 Region year-to-date sales have declined 12 per cent. So far this year there have been 38,338 sales in the 905 Region compared to 43,768 last year.
Prices throughout the GTA however, have remained fairly stable. At $368,549, the average price of a GTA home in September has declined three per cent from $380,132 recorded a year ago.
In the City of Toronto, the current average price of $393,647 declined six per cent from the September 2007 average of $420,182. Compared to the September 2006 average of $371,682 though, prices in Toronto for September 2008 have increased six per cent.
In the 905 Region, the average price of $352,071, increased marginally from the $351,641 recorded in September 2007, and was up five per cent from 2006 September average of $333,818.
"Although the market is not as robust as it was a year ago, homeowners are continuing to see strong returns on their investment," said Ms. O'Neill. "On average, Sellers are achieving 97 per cent of their asking price.
With the average number of days on market increasing to 36 days from to 31 days a year ago, it is taking slightly longer for homeowners to achieve a sale.
"Even with respect to sales activity, each month we continue to see a handful of neighbourhoods reporting increases compared to a year ago."
In Scarborough East (E08) transactions increased 22 per cent compared to September 2007 based on strong sales of all housing types.
Streetsville (W19) saw an 11 per cent sales increase due primarily to strong detached home sales.
In Newmarket (N07) transactions increased 11 per cent compared to a year ago, driven mainly by strong condominium townhouse sales.
"Given that these are trying times for the world economy, in context, the Greater Toronto Area resale housing market continues to fare quite well," said Ms. O'Neill. "From a long-term perspective, buying a home remains a sound financial decision."
October 3, 2008 in Toronto Real Estate Board | Permalink | Comments (2) | TrackBack
Toronto Real Estate Board:
GTA Resale Housing Stable in July
With 7,806 transactions recorded last month, the Greater Toronto Area (GTA) resale housing market continued at a moderate pace in July, Toronto Real Estate Board (TREB) President Maureen O'Neill announced today. Prices remained stable throughout the GTA in July. At $371,427 the average price increased slightly more than one per cent from $366,012 recorded in July 2007 and nine per cent from the $342,034 figure of two years ago.
In the City of Toronto the average price of $395,342 increased less than one per cent from the July 2007 price of $395,044 and 10 per cent from the July 2006 figure of $360,409.
In the 905 Region the average price increased three per cent to $355,401 compared to the July 2007 figure of $345,967. This also represents an eight per cent increase from the July 2006 average of $329,644.
"Sales declined 12 per cent last month from the best-ever July 2007 record of 8,912 but increased 10 per cent from the 7,082 sales transacted in July 2006," said Ms. O'Neill. "Comparing July 2007 with July 2006, sales increased by 26 per cent."
In the City of Toronto 3,132 sales were recorded, down 14 per cent from July 2007's 3,640 transactions but up 10 per cent from the 2,852 sales recorded two years ago in 2006. Comparing July 2007 with July 2006, a period before the Land Transfer tax went into effect in Toronto, sales increased 28 per cent.
In the 905 Region there were 4,674 transactions, down 11 per cent from July 2007's 5,272 sales but up 10 per cent from the 4,230 sales recorded in July 2006. Comparing July 2007 with July 2006, sales increased 25 per cent.
From a year-to-date perspective, the GTA's 51,249 sales in 2008 have declined 14 per cent from the 59,339 reached at this time a year ago.
Certain neighbourhoods throughout the GTA experienced increased sales activity in July.
In Whitby (E15) sales increased 22 per cent from July 2007, based on strong sales in most housing types.
Brampton East (W24) saw a 12 per cent increase, based primarily on semi-detached home sales.
Strong detached home sales drove Uxbridge (N16) to a 23 per cent increase compared to a year ago.
The Annex (C02) experienced a 29 per cent sales increase due to strong detached home and condominium apartment sales.
In addition to stable prices, the list to sale price ratio, at 98 per cent, remains unchanged from a year ago.
"While homeowners continue to see healthy returns, it is taking slightly longer to achieve a sale; the average time on market has increased to 33 days compared to 31 days a year ago," said Ms. O'Neill. "This may be due to that fact that there is now more choice available to homebuyers; there are currently 26,543 active listings, a 28 per cent increase from a year ago."
August 6, 2008 in Toronto Real Estate Board | Permalink | Comments (3) | TrackBack
The real estate 'Cartel' strikes again
MLS smacks down maverick website
It was an antidote to Toronto's sprawling housing market: a simple website created by two self-described "computer geeks" to ease their first home search, and then help a city of frazzled buyers. That is until this week, when the Multiple Listings Service - the reigning king of online real estate listings in Canada - unleashed its lawyer on housing123.com and banished the new kids on the block.
"It was always this overhanging axe that was ready to fall," said Travis Fielding, the 31-year-old co-founder of the website, which allowed users to search MLS listings plotted on a Google map of local neighbourhoods.
After all, MLS has crushed upstarts before. Two Toronto-based sites, Realtysellers Ltd. and Realestateplus.ca, were shut down in the past two years after run-ins with the Canadian Real Estate Association, which owns the MLS trademark. Housing123.com is accused of using its information without permission.
But some industry watchers say MLS may be losing this online turf war, as what's happening in the United States may soon happen here: Sites such as Redfin, Zillow and Yahoo Real Estate now carry the lion's share of new listings, while MLS is losing ground.
They say the MLS business model - giving people only a taste of a house and directing them to an agent for more - won't stand up against competitors that will give you every detail about a house and its surroundings, including local crime stats, school reviews and previous purchase prices, along with 360 tours and a break on the commission.
"They're basically saying, 'You know what? People want to search listings themselves,' " says John Pasalis, founder of Realosophy.com, a website that dishes details about Toronto and Greater Toronto Area neighbourhoods. "The problem in Canada is we can't do this because the real-estate boards don't allow us."
The idea for housing123.com bloomed a couple of years ago after Mr. Fielding's friend and fellow software developer, Kevin Lai, became frustrated with his own home search. Sick of navigating MLS, and frustrated by an agent who missed good houses, Mr. Lai thought he could design a better system.
On his laptop, he basically created what is known as a "Google-map mash-up," which allows people to plot customized data (in this case, MLS listings) on top of a Google map application.
It worked so well that, just for kicks, he enlisted Mr. Fielding to help him take it to the public. It took about three weeks to work out the kinks, and they developed a way for the program to automatically add new listings. "On a scale of 10, it's probably like six," Mr. Lai, 29, says of the difficulty level. For their day jobs, he and Mr. Fielding design software for financial companies.
Since the site was launched 10 months ago, it averaged about 400 to 500 unique users per day, Mr. Fielding says.
Users appreciated its simplicity. House listings appeared as dots on a map of Toronto, which users clicked on to take them to the MLS listing. Houses were colour-coded by price so users could see which areas were pricey or affordable.
By contrast, MLS has no way to narrow a search to a neighbourhood. If you're looking for a Victorian in Kensington Market, you have to search in zone C-01, which covers Yonge to Dufferin, and Bloor to the Lakefront. (That includes the Annex, the waterfront, Kensington, Little Italy, Trinity-Bellwoods, University, the downtown core, and others.)
The search engine spits out hundreds of listings, and users are stuck flipping between MLS and Mapquest.
Still, the housing123.com founders knew it would just be a matter of time before MLS came knocking, because they were using listings that were the property of MLS.ca.
Last week, Mr. Lai received a letter from a CREA lawyer saying they had violated copyright laws. Remove the site, it said, or we'll sue.
"They were scraping data from our website," says Calvin Lindberg, president of CREA, which represents more than 94,000 brokers and agents. "It's something that we deal with on a regular basis. ... Obviously whenever we see it happening, we send a letter asking them to turn it off."
Since the site folded on June 15, dozens of users have voiced their dismay on a blog, urging the duo to keep going or seek legal advice. One user wrote: "MLS is brutal and your site made finding the right place in the RIGHT location a breeze."
By the end of the summer, MLS.ca will have a map component, Mr. Lindberg says. Beyond that, he says, the site does not need to be improved. "We've created a very effective and efficient system that the consumers love."
Others disagree. One simply has to look south to see the potential for informative sites, Mr. Pasalis says. Those sites, however, have only been made possible through tough legal battles. In May, the U.S. National Association of Realtors settled its antitrust case with the Department of Justice, giving online realtors - which have been offering fees that are significantly lower than traditional realtor rates - full access to the MLS database.
Mr. Pasalis says the onus should be on Canada's Competition Bureau, not individual entrepreneurs, to fight to ensure fair competition is allowed in Canada too.
For now, Mr. Lai and Mr. Fielding say they are dreaming up new projects. "At least we helped a lot of people find their dream home," said Mr. Lai, who is now in the market for a downtown condo.
The pair say they may revive their site, but only to post properties from individual sellers or brokers - not MLS. "We can't afford the lawsuit, that's for sure," Mr. Fielding says.
Sadly, very few consumers appreciate that the MLS monopoly on publishing online real estate listings in Canada keeps listings fees double what they would be if open competition were permitted.
Source: Toronto Globe and Mail.
June 21, 2008 in Toronto Real Estate Board | Permalink | Comments (9) | TrackBack
Toronto Real Estate Board:
Take Action on Affordable Housing Realtors Tell Toronto
With the City of Toronto’s Affordable Housing Committee hearing input from the public about a proposed affordable housing strategy today, the Toronto Real Estate Board (TREB) is calling on the City to take action on affordable housing.
“Actions speak louder than words. REALTORS® are encouraged that the City is developing an affordable housing strategy, but recent City decisions, especially the implementation of the Toronto Land Transfer Tax, directly contradict this initiative,” said Maureen O’Neill, President of TREB.
TREB submitted its input in a detailed written submission, which raised concerns about new and increasing City-imposed costs on home ownership including a land transfer tax, property taxes, development charges, garbage fees, and water rates. TREB’s submission calls on the City to use the forthcoming affordable housing strategy to reverse this trend.
“All levels of government, including the City of Toronto, should do their part to address affordable housing challenges. With the forthcoming strategy, the City can send a strong message that it supports home buyers,” said O’Neill.
The proposed strategy sets specific targets for the number of households to assist in various categories. TREB is calling on the City to increase the number of households that it is targeting to assist with achieving home ownership.
“Addressing affordable housing requires comprehensive solutions. Owning a home is the preferred option for most people. The City can, and should, include ambitious targets for home ownership in its affordable housing strategy,” said O’Neill. To help achieve ambitious home-ownership targets, TREB believes that City-imposed housing costs should be reduced.
“The easiest way for the City to contribute to affordable housing solutions is to reduce the costs that it imposes on home buyers and owners. The Toronto Land Transfer Tax is one of the biggest costs faced by home buyers, and it should be rolled back,” said O’Neill. “Development charges also add costs for homebuyers; they should be kept fair and the City should consider targeted exemptions for affordable housing.”
June 16, 2008 in Toronto Real Estate Board | Permalink | Comments (11) | TrackBack
Sales down - but prices still increasing
Resale activity in the Greater Toronto Area marked another hefty decline in May, the Toronto Real Estate Board said, dropping 16 per cent from year-ago levels. A total of 9,411 transactions were recorded in the month. But despite the sales dip, prices continued to rise: the average home price of $398,148 in May represents a 4 pert cent hike from the May 2007 average of $382,787.
Prices increased 3 per cent in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 region there was a 5 per cent increase to $374,629 from $355,341 last May.
Toronto Real Estate Board President Maureen O'Neill chose to emphasize the positive in her remarks after releasing the new data.
"Price gains show that real estate continues to be a solid investment for the consumer," said Ms. O'Neill.
"We are confident about the market because employment in the GTA continues to be strong and interest rates remain low.
"As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable."
"The Toronto Land Transfer Tax has been in effect for four months and the decline in sales has been running for the same time period," said Ms. O'Neill.
"We're keeping a close watch on the effect of this new tax," she added.
Two areas north of the city showed particular strength in the month. In Uxbridge, sales were up 10 per cent, while Stouffville saw a 12 per cent increase in sales, driven mainly by detached home transactions.
June 7, 2008 in Toronto Real Estate Board | Permalink | Comments (6) | TrackBack
Toronto Real Estate Board reports:
GTA resale housing market down but still healthy
The Greater Toronto Area resale housing market saw 3,955 homes change hands in the first half of April, down five per cent from the same time period last year, Toronto Real Estate Board President Maureen O’Neill announced today. “The first half of April brought sales activity within five per cent of mid-April 2007,” said Ms. O’Neill.
In the City of Toronto sales are down 11 per cent compared to a year ago, with 1,514 transactions taking place. Inthe 905 suburbs, sales are down just over one per cent to 2,441 for mid-month April 2008 from 2,477 sales midmonth April 2007.
Throughout the GTA prices have risen seven per cent compared to the same timeframe last year, to an average of $399,117. In the City of Toronto the average stands at $454,211 up 10 per cent over mid-April 2007. The 905 Region has seen a six per cent increase compared to a year ago, with a current average price of $364,939.
The number of listings on the market is one per cent greater than last year with current inventory sitting at 22,985.
This indicates that inventory is on the rise. The positive news is homeowners are selling their homes with an average of 28 Days on Market compared to 30 a year ago. The slight increase in inventory levels and house prices are encouraging factors.
A number of GTA neighbourhoods showed strong sales activity during the first half of this month.
Willowdale (C07) saw a 75 per cent overall increase in transactions, driven by strong, detached, condo-apartment, and condo-townhouse sales.
In Vaughan/Thornhill (N02), transactions increased by 53 per cent compared to mid-April 2007, as a result of strong detached home sales.
Strong detached home sales also drove Brampton East (W24) to 37 per cent compared to the same timeframe a year ago.
In Riverdale (E01) transactions are up 10 per cent, also as a result of strong detached home sales.
“We’re also seeing sellers achieve on average 99 per cent of their asking price, which is one per cent higher than a year ago,” said Ms. O’Neill. “April’s numbers point to a stable, healthy market for the Greater Toronto Area this spring. However TREB still remains wary of the Land Transfer Tax in Toronto.”
April 17, 2008 in Toronto Real Estate Board | Permalink | Comments (4) | TrackBack
