Randy Miller

Broker Of Record

Urban Avenue Realty Ltd., Brokerage

Whitby & Brooklin Real Estate

Office 905-430-1800

Direct 905-430-9444

Email: randy@randymiller.ca

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June, 2015. Greater Toronto REALTORS® reported 11,706 sales 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.

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Toronto MLS New Listings

For Toronto Real Estate Board President Paul Etherington it is clear that home ownership remains “top of mind as a quality long-term investment for GTA households”.  Despite a shortage of listings in some market segments there is a record number of sales reported through TREB’s MLS® System for the month of May.

Toronto MLS Average Price
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.

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.

Housing Affordability

According to Jason Mercer, TREB’s Director of Market Analysist, tight market conditions, especially for singles, semis and town homes in the GTA, have resulted in strong price growth.  “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 Mercer.

Toronto MLS Sales with Trendline
Toronto MLS New Listings with Trendline
Toronto MLS Avg Price with Trendline

Durham Region a great place to invest

Durham Region Association of REALTORS® (DRAR) President Sandra O’Donohue reported 1,320 residential transactions in May 2015. This result represented a small decrease from 1,334 in May of last year.  Sales and listings have remained proportionate in comparison to last year as the amount of listings also slightly decreased.

Average Selling Price Housing Durham Region 

In May 2015 the average price of a detached home in Durham Region reached $502,079. In May 2014, detached homes sold for an average of $428,914, which demonstrates a year-over-year increase of over 17 per cent. The average price for all home types in Durham was $449,837 last month, an increase of 15.1 per cent compared to the same period last year.

“Lack of inventory encouraged competition between buyers which puts upward pressure on selling prices,” stated O’Donohue. "We expect similar rates of price growth to continue into the second half of 2015. Borrowing rates help keep home ownership affordable while property values continue to rise, which makes Durham Region a great place to invest”.

If you are looking for a house in Durham Region or are already a homeowner and wish to move to a new house in Pickering, Ajax, Whitby, Brooklin, Oshawa, Courtice or Bowmanville, please contact me for more information.

Having sold real estate in Whitby and the Durham Region for over 20 years, I can help you with both - the buying and selling process.

Randy Miller
Broker of Record
Royal Heritage Realty Ltd.
Offices in Pickering and in Whitby
905-430-1800

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Rising Home Sales

According to the Canadian Real Estate Association (CREA), the average sale price for an existing home in Canada rose 9.5 per cent, year-over-year, to $448,862 in April. Excluding the two major cities, Vancouver and Toronto, the increase was much more modest at 3.4 per cent to $339,893.

The number of home sales processed through the MLS® Systems of Canadian real estate Boards and Associations rose 2.3 per cent in April 2015 compared to March. This marks the third consecutive month-over-month increase and raises national activity back to where it was during most of the second half of last year.

April sales were up from the previous month in two-thirds of all local markets, led by the Greater Toronto Area, the surrounding Golden Horseshoe region, and Montreal.

 “In recent years, the seasonal pattern for home sales and listings has become amplified in places where listings are in short supply relative to demand,” said Gregory Klump, CREA’s Chief Economist. “This particularly stands out in and around Toronto. Sellers there have increasingly delayed listing their home until spring. Once listed, it sells fairly quickly. Sales over the year as a whole in Southern Ontario are likely being constrained to some degree by a short supply of single family homes. However, the busy spring home buying and selling season has become that much busier as a result of sellers waiting until winter has faded before listing.”

Actual (not seasonally adjusted) activity in April stood 10.0 per cent above levels reported in April 2014. This marks just the third time ever that sales during the month of April topped 50,000 transactions.

Sales were up on a year-over-year basis in about 70 per cent of all local markets, led by activity in the Lower Mainland of British Columbia, Greater Toronto, and Montreal. Of the 18 local markets that set new records for the month of April, all but two are in Southern Ontario.

The number of newly listed homes was virtually unchanged (+0.1 per cent) in April compared to March. Below the surface, new supply rose in almost two thirds of all local markets, led by a big rebound in Halifax-Dartmouth following a sharp drop in March. This was offset by declines in Greater Vancouver, Victoria, and the Okanagan Region, as well as by a continuing pullback in new supply in Calgary. New listings in Calgary have dropped by one-third from their multi-year high at the end of last year to their current multi-year low.

The national sales-to-new listings ratio was 55.3 per cent in April, up from 50.4 per cent three months earlier as the ratio has steadily risen along with sales so far this year.

A sales-to-new listings ratio between 40 and 60 per cent is generally consistent with balanced housing market conditions, with readings above and below this range indicating sellers’ and buyers’ markets respectively. The ratio was within this range in the majority of local housing markets in April.

The number of months of inventory is another important measure of the balance between housing supply and demand. It represents the number of months it would take to completely liquidate current inventories at the current rate of sales activity.

There were 5.9 months of inventory on a national basis at the end of April 2015, down from 6.1 months in March and 6.5 months at the end of January when it reached the highest level in nearly two years. While the sales-to-new listings ratio and months of inventory measures of market balance indicate that the housing market has tightened on a national basis over the past few months, both measures remain firmly entrenched in balanced market territory.

The Aggregate Composite MLS® HPI rose by 4.97 per cent on a year-over-year basis in April, on par with the 4.95 per cent year-over-year gain recorded in March.

Year-over-year price growth accelerated in April for apartment units and two-storey single family homes, while decelerating for townhouse/row units and one-storey single family homes.

Single family home sales continue to post the biggest year-over-year price gains (+5.84 per cent), led by two-storey single family homes (+6.89 per cent). By comparison, the rise in selling prices was more modest for one-storey single family homes (+4.20 per cent), townhouse/row units (+3.87 per cent), and apartment units (+2.60 per cent).

Full article & statistics: Click HERE!

Source: CREA.ca

Contact me
for information about the housing market in Durham Region!  

Randy Miller
Broker of Record

Royal Heritage Realty Ltd.
Offices in Pickering and in Whitby

905-430-1800

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Rising house prices

Housing markets across much of province could be boosted by slumping oil and improving U.S. economy, economist predicts.

Toronto’s record house prices could soar a further 17 per cent by the end of 2017 as the lack of supply in the face of unrelenting demand continues to drive prices far beyond the rate of inflation, says the chief economist of Central 1 credit union.

Long-time housing watcher Helmut Pastrick says those who caution that Toronto’s market is in bubble territory and about to burst are based on “inadequate models” that ignore some key basics.

“The principal drivers of home prices are market demand and supply fundamentals. Toronto’s population is growing and supply is limited. Prices will keep rising until the next economic recession, whenever that is.”

Barring any unforeseen global crises, that’s at least two years off, predicts Pastrick, who’s studied the housing market for 40 years, 18 years as chief economist with Credit 1, the umbrella organization for about 130 credit unions in Ontario and B.C.

Ontario housing markets, with the exception of Toronto, have largely underperformed since 2001. But that’s now likely to change in the face of the “economic seismic shift” of slumping oil prices that may be a drag on the Canadian economy but a boon for Ontario exporters and manufacturers, says the economic forecast being released Thursday.

He anticipates that Toronto home prices, which averaged $573,183 in 2014 could soar to $670,000 by the end of 2017. Ontario house prices, which averaged $430,984 in 2014, could hit $496,000 during the same time.

Southwestern Ontario, and especially communities with a strong manufacturing base such as Windsor and Sarnia, are likely to see an uptick in jobs and economic growth which could play out in strong house sales and above-inflation price increases to the end of 2017, he adds.

Regional markets around the GTA — such as Kitchener-Waterloo, Barrie, Hamilton and the Niagara Peninsula — could also see a surge in sales partly as a result of Toronto’s tight market. That could translate into house price gains in the 16 per cent range over the next three years, says Pastrick.

The Canadian Real Estate Association recently predicted that low oil prices could result in a 1.1 per cent decline in national home sales through 2015, but a 2 per cent increase in average prices.

Read the full article: http://www.thestar.com/business/2015/03/25/torontos-record-house-prices-to-rise-further-by-2017.html By: Susan Pigg Business Reporter, Published on Wed Mar 25 2015

To learn more about local real estate market conditions in Whitby, Brooklin, Ajax, Pickering, Oshawa, Courtice and Bowmanville, please contact me.

Randy Miller
Broker of Record

Royal Heritage Realty Ltd.
Offices in Pickering and in Whitby

905-430-1800

 

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March 4, 2015. Greater Toronto Area REALTORS® reported 6,338 home sales in February 2015, that’s a substantial 11.3 per cent year-over-year increase compared to February 2014.  Large annual increases in transactions were noted for most major home types, in the City of Toronto and surrounding GTA regions.


Toronto MLSsales.jpg

Mr. Paul Etherington, TREB President, said that even with the record low temperatures last month, there was still an increase in the number of people purchasing homes in the GTA.  This speaks to the importance households place on home ownership and the fact that buyers continue to view ownership housing as a quality long-term investment in which they can live.

Toronto MLSNewListings.jpg

The overall supply of homes for sale was down by 8.7 per cent compared to the same count in February 2014.  This means that market conditions became tighter, leading to more competition between buyers.


AvResaleHomePrice.jpg

The overall average selling price for February 2015 home sales was $596,163 – up by 7.8 per cent compared to the average for February 2014. In the City of Toronto, the average detached selling price moved above $1 million dollars for the first time in a calendar month. 


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“The strong year-over-year price growth we experienced in February points to the robust demand for ownership housing in the GTA, coupled with a constrained supply of homes for sale in some market segments, especially where low-rise home types like singles, semis and townhouses are concerned,” said Jason Mercer, TREB’s Director of Market Analysis. 

Buyers continue to see home ownership as a great investment

Sandra O’Donohue, President of Durham Region Association of  REALTORS®,  reported 728 residential transactions in February 2015. This result is up 13.9 per cent from 639 in February of last year. Inventory remained almost the same year-over-year with 1,085 new listings entering the market compared to 1,073 in February of last year.

DurhamHousingMarket.jpg

The average selling price in the Durham Region reached $420,718 in February 2015. O’Donahue said that the average home price has continued to rise into 2015, representing a 12.8 per cent increase from February 2014. “The driving force behind the higher sale prices is the shortage of inventory compared to the demand of buyers. This trend is what we call a seller’s market” explained O’Donohue. Another indicator of a seller’s market is the amount of time a home spends on the market before it is sold. Homes are selling in an average of 17 days in the Durham Region, which is significantly faster than last year with an average of 23 days on the market.

Even with the robust price growth, there is strong demand for home ownership in the Durham Region which is demonstrated by the higher number of sales and the climbing sale prices. So buyers continue to view home ownership within the Durham Region as a great long-term investment.

If you are looking for a house in Durham Region or are already a homeowner and wish to move to a new house in Pickering, Ajax, Whitby, Brooklin, Oshawa, Courtice or Bowmanville, please contact me for more information.

Randy Miller
Broker of Record

Royal Heritage Realty Ltd.
Offices in Pickering and in Whitby

905-430-1800

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Toronto

Toronto realtors look at it this way: Home prices may be considerably higher, but borrowing costs are lower.

In a mid-month report released today, the Toronto Real Estate Board said sales in the region surged almost 15 per cent in the first two weeks of February from the same period last year.

The average price, meanwhile, jumped 10.3 per cent to $602,110, while new listings rose at a slower pace of 3.5 per cent.

“While home prices are higher compared to this time last year, borrowing costs are lower,” the group’s president, Paul Etherington, said in releasing the report.

Behind the price surge are developments such as bidding wars.

“With tight market conditions continuing to prevail in most parts of the Greater Toronto Area, especially where low-rise home types are concerned, it is no surprise that we continue to see strong competition between buyers leading to robust annual rates of price growth,” said Jason Mercer, the group’s director of market analysis.

In the full month of January, Toronto sales rose 6.1 per cent, and the average price 4.9 per cent.

Canada’s housing market isn’t so much a national market, but rather a string of regions.

And, as The Globe and Mail’s Tamsin McMahon reports, the nature of those regions is changing markedly amid the oil slump.

Calgary, for example, which sits in the heart of Canada’s oil patch, was not that long ago the hottest market in the country.

But sales there are plunging now – down 35 per cent in January – along with the price of oil.

National sales fell 3.1 per cent last month from December. But if you strip out Calgary and Alberta, sales rose by 1.9 per cent.

Having said that, sales in certain other parts of Canada weren’t “especially hot either,” as 15 of the 26 markets measured saw no increase or an outright drop in January from a year earlier, noted chief economist Douglas Porter of BMO Nesbitt Burns.

“Canada’s housing market is cooling notably, largely because of the sudden deep chill in the previously hottest cities,” Mr. Porter said.

“However, there is still plenty of regional variation churning below the surface. We suspect that with borrowing costs still plumbing the depths and many provincial economies holding up, any housing correction will be a specific regional affair.”

In a new report released today, Mr. Porter's colleague at BMO, senior economist Sal Guatieri, said he expects house prices across Canada to rise 2 per cent this year, as the increases in Toronto and Vancouver overshadow the troubles of Calgary.

“However, rising interest rates in 2016 will restrain prices in these two cities,” he added.

When you strip out Vancouver and Toronto, Mr. Guatieri said, home prices “appear reasonable,” meaning less chance of a “severe” national correction.

But the fast pace of gains in Vancouver and Toronto, he warned, “raise the odds of a correction if economic conditions turn for the worse.”

Source: by Michael Babad, The Globe and Mail, Toronto’s housing surge: Prices jump 10%, borrowing costs ease

Randy Miller
Broker of Record

Royal Heritage Realty Ltd.
Offices in Pickering and in Whitby

905-430-1800

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