In June 2006, the average price of a new low-rise home in the Great Toronto Area was $393,398, and now 10 years later the average price has hit $887,543 according to BILD, the Building Industry and Land Development Association.
The term “low-rise homes” applies to townhomes, semi-detached and detached homes. Within the last year, the price of these homes increased from $785,800 to today’s high, a jump of over $100,000
Michelle Noble, the vice president of communications for BILD, said that, “The price of low-rise homes has grown exponentially as supply has dropped.”
In 2006, new homes in builders’ inventory totaled almost 30,000, more than half of which were low-rise homes. This year, there were 18,427 homes available, only 2,000 of which were low-rise homes. This is a near record low.
She continued, “Supply of new low-rise homes has decline dramatically in the last 10 years due to government policy and lack of available serviced land. Demand for ground-related homes is far outpacing supply, with some projects selling out just hours after launching.”
Most homebuyers are told that getting a home inspection is one of the wisest decisions they can make as a buyer, and that going without one can be a very costly mistake. And yes, this is true. A home inspection is a very smart investment. But what most homebuyers don’t know is that home inspectors aren’t regulated. In fact, anyone can be a home inspector in Ontario.
While the government started looking into the issue three years ago with panels, reports and recommendations, but nothing has happened in an official regulating capacity yet. However, Trinity-Spadina MPP Han Dong recently introduced a private member’s bill called Licensed Home Inspectors Act, 2016.
The purpose of this bill is to create an administrative authority that would regulate the industry. So we could be one step closer to regulating home inspectors in Ontario, but in the meantime, homeowners need to ensure they do their research and find a home inspector with quality references.
The Toronto Real Estate Board has announced that it will appeal the Competition Tribunal’s decision to release data on homes sold and pending sales.
“This order provides little protection for the consumer and opens the door to misuse and abuse of their sensitive personal financial information and the content of an Agreement of Purchase and Sale contract that has not been closed,” said the Chief Executive Officer of the Toronto Real Estate Board, John DiMichele. The consumer has privacy rights and only the consumer should be the one to determine, with clear understanding, when and where their personal financial information is disclosed.
DiMichele continued, “The issue for TREB is about duty of care and professional responsibility. TREB has grown to more than 45,000 Members across the GTA and does not discriminate between business models used by its Members. In fact, we welcome and support all innovation and business models. Make no mistake, this decision should raise concern for all consumers about informed consumer content and disclosure of confidential content within an Agreement of Purchase and Sale contract that has not closed. TREB believes the case law is clear and the Digital Privacy Act and personal Information Protection and Electronic Documents Act are very specific on consent. TREB believes it’s the consumer’s information and they have a right to choose. Choice and consent with respect to personal financial information does not impede innovation.”
To read the full statement, visit the Toronto Real Estate Board website here.
According to the Toronto Real Estate Board, the number of home sales during the month of June was 7.5 per cent higher than the number seen in June of last year, while listings decreased by 3.8 per cent.
“As I start my term as TREB President, we are certainly in an interesting environment for ownership housing,” said incoming Toronto Real Estate Board president Larry Cerqua. “There is no doubt that demand is at a record level, but would-be home buyers continue to face an uphill battle against a constrained supply of listings, which has perpetuated strong price growth. Buyers and sellers alike continue to benefit from the value a Realtor brings to a transaction.”
He continued, “As the federal, provincial and local levels of government discuss housing policy in the coming months, issues affecting the lack of supply in the GTA should be of paramount importance. TREB will be undertaking, and making public, results of additional research in the second half of 2016, with the goal of proactively adding to the housing policy discussion.”
The average selling price for a home in Toronto during June 2016 was $746,546, which is an increase of 16.8 per cent over last year.
Jason Mercer, the Toronto Real Estate Board’s Director of Market Analysis, said that, “When TREB surveyed consumer intentions for 2016, we found that the majority of GTA households who were likely to purchase a home continued to be pointed towards some form of ground-oriented housing. This is why we continue to see strong competition between buyers in many neighbourhoods where supply remains constrained.”
According to the Toronto Real Estate Board’s Commercial Network Members, commercial leasing activity in Toronto saw strong growth during the second quarter of the year with an increase of 27 per cent compared to the same time last year.
The majority of leased space was industrial property.
“It was certainly promising to see growth in the amount of space leased in the second quarter of the year, especially given the level of economic uncertainty in Canada at the present time,” said the president of the Toronto Real Estate Board, Larry Cerqua, in a press release. “However, while the regional economy in the Greater Golden Horseshoe has outperformed relative to many other metropolitan areas across the country, it is important to note that the most recent Bank of Canada Business Outlook Survey points to flat sales growth and moderate investment intentions. This suggests that we could continue to see some volatility in commercial leasing in the coming months.”
While leased space was up, total sales of commercial, industrial and office space decreased from 362 sales during the second quarter of last year to 238 this year.
IKEA has just released its third-annual “Life At Home” report, which examines what makes a house a home and how people live in their homes.
Whether it’s safety, simple maintenance, having a physical space to store their most important things or feeling like a place is “theirs”, people all over the world have different feelings and priorities when it comes to their homes, and what makes them feel at home.
Be sure to check out the report in full at this link here.
The Canada Mortgage and Housing Corporation’s Ontario Housing Market Outlook says that housing activity in Ontario is expected to remain elevated before easing up next year.
Housing starts in Ontario are now expected to be higher by almost 2,000 units in 2016, with another 213,000 to 231,500 units total in 2017.
Prices in Ontario are also expected to continue to grow, however at a slower rate overall despite strong short-term growth.
The average selling price for a home in Ontario will be between $505,500 and $516,100 this year, and between $517,100 and $535,400 next year.
“Despite an improving Ontario economy, housing activity is expected to ease over the forecast period as the cost of owning a home continues to increase,” said the Regional Economist (Ontario) for the Canada Mortgage and Housing Corporation, Ted Tsaikopoulos. “However, homes in southwestern and southern Ontario markets bordering the GTA tend to be more affordable, thus we expect a growing share of activity in those centres as we do for higher density housing which includes less expensive rental accommodation.