GTA REALTORS® Report July 2010 Resale Housing Figures

Greater Toronto REALTORS® reported 6,564 sales in July – a 34 per cent dip from the record 9,967 sales reported in July 2009. New listings, at 10,825, dropped to the lowest level for the month of July since 2002.

“The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring,” said Toronto Real Estate Board (TREB) President Bill Johnston.

Total sales through the first seven months of 2010 were up by 12 per cent compared to the
same period in 2009.  Notwithstanding the fact that price trends vary at the neighbourhood level in GTA, the average price for July transactions was $420,482, representing a six per cent increase over July 2009. Over the first seven months of 2010, the average selling price was up 12 per cent annually to $432,253.

“Market conditions promoting annual growth in the average selling price have remained in place. While July sales were down compared to last year, the number of new listings in the marketplace also fell. This means there was enough competition between buyers to exert upward pressure on price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

GTA New Home Sales for June 2010: A Tale of Two Markets

Sales of new high-rise condominium suites held firm in June while sales of new low-rise homes retreated due to record-low inventory levels of that product type, the Building Industry and Land Development Association (BILD) announced today.

According to RealNet Canada Inc., BILD's official, independent source of new home market intelligence, there were 2,920 new homes and condos sold in June 2010. While high-rise condo sales remained right in line with 2009 (and 2008), low-rise (single-detached, semi-detached town-home) sales were off by 46 per cent, resulting in a 26 per cent decrease in total new home sales June/June. "It's a tale of two markets," quipped BILD President and CEO Stephen Dupuis.

With the first half of 2010 in the books, the recovery in new home sales is revealed by a 69 per cent increase in total new home sales driven by a dramatic 142 per cent increase in sales of high-rise condominium suites. Even compared with January-June 2008, total new home sales are up a healthy 22 per cent.

"By this point last year, the new housing market was nearing full recovery from the global financial crisis. We're now comparing apples with apples and on that basis, the new home market appears to be on relatively solid footing at this time," Dupuis said.

He pointed out that the low-rise market is up 29 per cent on a year-to-date basis, with the June decline reflecting an over-shot last year when sales spiked by 60 per cent, as well as the record low inventory levels of detached, semi-detached and townhomes. "With relatively few new project openings thus far this year, low-rise sales have been naturally constrained," Dupuis stated.

June new home sales were split 60 per cent high-rise, 40 per cent low-rise and through the first six months of the year 53 per cent high-rise, 47 per-cent low-rise.

June '10	Low Rise			High Rise			Total
Region	2009	2010	% Change	2009	2010	% Change	2009	2010	%Change
Durham	260	301	15.8%	7	6	-14.3%	267	307	15.0%
Halton	426	108	-74.6%	28	41	46.4%	454	149	-67.2%
Peel	408	259	-36.5%	256	50	-80.5%	664	309	-53.5%
Toronto	85	92	8.2%	1,215	1,344	10.6%	1,300	1,436	10.5%
York	965	396	-59.0%	275	323	17.5%	1,240	719	-42.0%
GTA	2,144	1,156	-46.1%	1,781	1,764	-1.0%	3,925	2,920	-25.6%
Jan-June	7,451	9,571	28.5%	4,153	10,030	141.5%	11,604	19,601	68.9%

Source: RealNet Canada Inc.

Hey Vaughan, what do you fear, love & laugh at?

The answers to these 3 questions along with describing 'what's in your pocket'  are what Oscar winning director Kevin MacDonald (Last King of Scotland) and producer Ridley Scott (Gladiator)  hope you will convey in your personal video on July 24, 2010 as fodder for their upcoming documentary known as:

Life in a Day

The two, in partnership with Google, YouTube and LG (Life's Good) Electronics, are embarking on a historic cinematic experiment that will attempt to do just that: document one day, as seen through the eyes of people around the world.

The most compelling footage from around the world from extraordinary people like you and ordinary people like me will be edited into a feature documentary film which will premiere at the 2011 Sundance Film Festival.

If your footage makes it into the final cut, you’ll be credited as a co-director and may be one of 20 contributors selected to attend the premiere.

Here's a clip of Mr. MacDonald and Mr. Scott with their thoughts the project:





Want to take part?  Want to help put the City of Vaughan on the Global Map? Here’s what to do.

1. Visit the “Life in a Day” channel and learn more about the project. Be sure to read through the steps you need to take to participate and the guidelines for creating your video(s). Also check out some of the sample videos for inspirational ideas.

2. On July 24, capture your day on camera.

3. Upload your footage to the “Life in a Day” channel any time before July 31.

Regardless of whether your footage makes it into the final film, your video(s) will live on on the“Life in a Day” channel as a time capsule that will tell future generations what it was like to be alive on July 24, 2010.

GTA REALTORS® Report Mid-Month Resale Housing Figures

Greater Toronto REALTORS® reported 2,790 sales through the Multiple Listing Service® (MLS®) during the first two weeks of July 2010.

This represented a 37 per cent decrease compared to the 4,437 sales recorded during the same period in 2009. New listings decreased by eight per cent annually to 5,184.

“Last summer existing home sales spiked well above the expected long-term trend.  Sales were also unseasonably high during the first four months of this year,” said Toronto Real Estate Board President Bill Johnston. “Transactions will be down yearover-year in the second half of 2010 as the level of sales balances out.”

“With year-to-date sales up by more than 18 per cent compared to last year, we continue to look forward to one of the best years on record under the current TREB trading area,” continued Johnston.  The average price for July mid-month transactions was $427,931 – up eight per cent compared to the average of $394,750 recorded during the first 14 days of July 2009.

“The average home selling price in the GTA will continue to grow on an annual basis in the second half,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.  “Even with the pace of transactions slowing, there will be enough sales relative to listings to support sustainable rates of price growth.”

Source: Toronto Real Estate Board

Bank of Canada raises rates further

The Bank of Canada increased the target for its trend-setting overnight lending rate on July 20, 2010, raising it by a quarter of a percentage point to 0.75 per cent. The increase follows on the heels of an equal interest rate increase in June 2010, when it was raised for the first time since 2007. The Bank rate now stands at one per cent.

In its most recent interest rate announcement, the Bank marked down its outlook for economic growth globally, emphasizing the uneven economic recovery in the U.S., and weakening prospects for European economic growth.

In the Bank’s view, Canada’s domestic economy is evolving largely as expected in recent months, but trimmed its forecast for economic growth this year and next by 0.2 per cent to 3.5 per cent in 2010 and 2.9 per cent in 2011. While the Bank raised its forecast for Canadian economic to 2.2 per cent in 2012, it nonetheless left the easing trend for growth intact.

The Bank indicated, “[this] revision reflects a slightly weaker profile for global economic growth and more modest consumption growth in Canada. The Bank anticipates that business investment and net exports will make a relatively larger contribution to growth.
Where the domestic recovery had previously been led by housing and consumer spending it is now guided more by government stimulus.”

The Bank also reaffirmed its view that housing activity and household expenditures was pulled forward into the first half of 2010, causing to soften in the second half. It also recognized that business investment has been weaker than it previously expected, “held back by global uncertainties.” The Bank anticipates “that business investment and net exports will make a relatively larger contribution to growth” over its forecast horizon.

As of July 20th, the advertised five-year conventional mortgage rate of 5.79 per cent was down 0.06 per cent from one year earlier, and 0.2 per cent below where it stood when Bank made its previous interest rate announcement on June 1, 2010. However, it is 0.3 percentage points higher than it was at the beginning of the year.

The Bank has signaled to financial markets that it is leaving its options wide open as to whether it will raise interest rates further when it makes its next rate announcement on September 8th.

“As it did with its previous announcement in June, the Bank messaged financial markets that further interest rate increases are not pre-ordained,” said CREA Chief Economist Gregory Klump. “The strength of recent economic indicators have prompted the Bank to raise interest rates, but the Bank has signaled that may keep rates on hold should the economic recovery begin to show signs of loosing steam.”

The Bank’s July MPR will be published on July 22. The Bank will make its next scheduled rate announcement on September 8th.

Source: Canadian Real Estate Association

Guest Post: Pop Quiz... Are you Selling This or That?

Readers of this blog will note that recent real estate statistics are trending in a lower sales to active listings ratio. The result is a greater supply of homes to choose from.  That's good news for buyers, not so for sellers.

Accordingly, should this pattern continue (and I suspect it will) it  will underscore the importance to sellers to implement an elaborate sale & marketing plan in order to effectively distinguish your home. The days of simply listing your home on the MLS system and expecting an immediate sale for full asking price are behind us.

One important element that I have always been a big proponent of in many situations is Home Staging.

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The following is a guest blog from Michelle Finnamore of Advantage Staging. 

In home staging your purpose is to highlight the features and focal points of a property for sale.

When you list a house, you really want to premept objections by showing the property in its best light.

Take a look at these before and after shots and see if you can pick out the features that should be shown to buyers to get the most money in the least amount of time.

In this example are you selling yellow florals in a vase and stacks of firewood or a living room with a beautiful working fireplace?

Staging allows the fireplace to become the focal point in the room.



In this example are you selling toys to buyers or an inviting living room for entertaining guests? Remember, this is not the family room. Living rooms tend to look more formal and family rooms more relaxed.



In this example are you selling a cramped, dark kitchen to buyers or a bright cheery room in which to start the day?  Light and space sell homes. Give buyers what they are looking for and they will make an offer.



As you can see,  the results of staging highlight the features of your property.

Each room must be clearly marketed so that buyers see what they are looking for when they visit your listing photos. You have to get your house on the buyers must see list and staging gives you every opportunity to make a great first impression. Sellers need to know that a professional stager will give them a marketing plan for their home that outlines the work that needs to be done and how to make it happen.


Investment, minimal.  Impact, priceless.

Michelle Finnamore is the owner and operator of Advantage Staging.  She is a Certified Staging Professional and Live Green, Live Smart Certified Trainer.  She's been featured on HGTV
Email Michelle for enquiries about her services.

Canadian Home Sales cool in June

Statistics released by The Canadian Real Estate Association (CREA) show the number of newly listed homes & sales activity declined in June 2010.

Seasonally adjusted national home sales activity via the Multiple Listing Service® (MLS®) Systems of Canadian real estate Boards receded 8.2% in June from the previous month. Led by lower activity in Toronto and Calgary, sales declined in almost 70% of local markets.

Tightened mortgage regulations & anticipated interest rate increases cooled sales activity throughout the 2nd quarter, resulting in a decline of 13.3% from near-record levels in the first quarter. As expected, these two national factors contributed to a widespread decline in activity, with transactions down in all but a dozen or so smaller markets.

Actual (not seasonally adjusted) national sales activity was 19.7% lower in June 2010 compared to last year, when activity almost reached a new record for the month. Actual sales activity in the second quarter stood 2.8% below levels reported in the second quarter of 2009. For the year-to-date, transactions are up 13.6% compared to the first-six months of last year. This gap is expected to shrink as the year progresses, since activity trended upward over the second half of last year and is forecast to continue easing over the second half of 2010.

Bank of Canada Business Outlook & Loan Officer Surveys released

The Bank of Canada has released its summer business outlook survey.  The survey represents a summary of interviews conducted by the Bank's regional offices with the senior management of about 100 firms, selected in accordance with the composition of Canada's gross domestic product.

The survey's purpose is to gather the perspectives of these businesses on topics of interest to the Bank of Canada (such as demand and capacity pressures) and their forward-looking views on economic activity.

Among results noted, firms are reporting improved sales over the past year ( first time in two years)

There's also suggestion that execs and business owners are planning on increasing their payrolls during the next two months.

The Q2 Senior Loan Officer Survey was also released on the same day.  It collects information on the business-lending practices of Canadian financial institutions.

Results suggest that corporate loan officers across the country told the Bank of Canada that they are increasingly extending credit to firms on better terms (particularly big firms).  Overall good news.

Original Survey Results can be found here:

Bank of Canada Business Outlook Survey, Summer 2010
Bank of Canada Senior Loan Officer Survery, Q2 2010

TREB GTA Housing Charts for June 2010

Just published are the Toronto Real Estate Board (TREB) GTA Housing Charts for the month of June 2010.

Click HERE to view chart slideshow

If you have any questions about the charts or any other real estate matters, please feel free to Email Me

GTA REALTORS® report June resale housing market figures

Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June.
This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.

“We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year,” said newly elected Toronto Real Estate Board President Bill Johnston. “The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates.”

The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.  “With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.  “The annual rate of average price growth in the second half of 2010 will be in the single digits.”