REP

The Toronto Real Estate Board says home sales in the Greater Toronto Area plunged last month by 20.3 per cent as prices continued to climb.

The board says the average selling price for all properties in May was $863,910, an increase of 14.9 per cent from the same month last year.

Sales of detached homes, which had an average selling price of $1,141,041, fell by 26.3 per cent in the GTA.
The data captures a month during which the Ontario government implemented a 15 per cent tax on foreign buyers in the Greater Golden Horseshoe, a fast-growing region stretching from the Niagara Region to Peterborough, Ont., retroactive to April 21.

The measures are intended to temper rapid price growth that has given rise to concerns that Toronto has become increasingly unaffordable.

They are also aimed at preventing or mitigating the damage that could result from a housing correction if one were to occur.

The board said in a statement Monday that the effects of Ontario’s housing changes have yet to be seen.
However, Bank of Montreal’s morning note to clients says there’s “little doubt” the government measures have had an impact.

The bank _ which includes mortgage lending in its business _ says “foreign buyers have likely pulled back, while domestic buyers appear to have stepped back as well to see how the changes shake out.”

Policy-makers at various levels are watching the city’s housing market closely as there are fears that the fallout from a possible crash in prices could have ramifications on the national economy.

There are signs that Canada’s other real estate market of concern _ Vancouver _ may be heating up again after that city’s real estate board reported Friday that home sales last month have rebounded to near record levels.

Transactions in Metro Vancouver in May were down 8.5 per cent year-over-year, while the MLS benchmark price for all properties hit $967,500, an increase of 8.8 per cent since May 2016.

Like Ontario, British Columbia introduced several measures including a tax on foreign buyers in the Vancouver area last August in an effort to stabilize the housing market.

Copyright © 2017 Key Media Pty Ltd

Concord Pacific?s Park Boulevard to rise 41 storeys above an evolving city centre

Simon Briault
The Vancouver Sun

Park Boulevard

Project location: 9887 Whalley Boulevard

Project size: 419 homes in a 41-storey tower. 1 bed starting at approx. 529 sq. ft.; 2 bedroom starting at approx. 647 sq. ft., 3 bedroom starting at approx. 1,015 sq. ft. Prices available on request.

Developer: Concord Pacific Developments Inc.

Interior designer: LIV Interiors

Architect: DYS Architecture

Sales centre: 9908 King George Blvd., Surrey (next to King George SkyTrain Station)

Hours: daily 11:30 a.m. — 5:30 p.m.

Telephone: 604-583-9866

Website: ParkBoulevardLiving.com

Occupancy: Estimated completion by 2020

Architects talk a lot about the relationship buildings have with their neighbourhoods, the way they complement existing structures and interact with the built environment. But Park Boulevard, Concord Pacific’s new highrise in Surrey, takes interactivity to a whole new level.

Designed by DYS Architecture and set to rise 41 storeys next to King George Skytrain Station, Park Boulevard will be Canada’s first interactive illuminated residential tower: A responsive light display will be synchronized with the arrival of trains at the station.

“The City of Surrey is very excited about this idea and the mayor even mentioned it recently in her state-of-Surrey address,” said Grant Murray, Concord Pacific’s senior vice-president of sales. “It’s very low cost because it’s all LED lighting. The nice thing about it is that it will be embedded into the concrete edges of the balconies. When you’re standing on your balcony or in your suite, you won’t see any light at all. It’s purely an external feature that you’ll see from the outside of the building, rather than the inside.”

Light displays aside, Park Boulevard’s location is perhaps its biggest selling point. Sitting at the heart of Surrey’s master-planned city centre, the development is steps away from rapid transit connections in every direction. Apart from the existing SkyTrain system, a new light rail network is planned and will connect Surrey City Centre with Newton Centre and Guildford Town Centre. There are also 22 bus routes within walking distance.

The City of Surrey has big plans for the area. Its website talks of a location that is “in the midst of significant transformation” as what was once a suburban town centre is developed into a “walkable, transit-oriented downtown core for business, cultural and entertainment activity.”

According to Murray, Park Boulevard is at the heart of this transformation, but will nevertheless offer residents more privacy that you might expect from a highrise residential tower.

“The other thing that’s great about this building is that it has a lot of open space around it,” Murray added. “We were originally planning two towers here, but in the end, we elected to only build one. This means that the whole eastern and southern sides will be exposed to Quibble Creek. Residents won’t have anything across the street except greenbelt to look at.”

Park Boulevard is already proving popular with buyers from a wide range of demographics, according to Murray.

“We’ve had a fairly high number of investors, as well as people who are selling single-family homes and first-time buyers,” he said. “We’ve also seen a lot of people who are buying apartments on behalf of their kids to get them a start in life.”

“Park Boulevard is one of the more affordable highrise developments in the Lower Mainland,” Murray added. “A lot of people are retiring and deciding to sell the family home. I think that instead of taking all of the money from their house and buying something in the Vancouver area, a lot of them are moving out further, maybe because they have grandkids that live out in the valley. People have been telling us they can buy a condo here, be closer to where their kids and grandkids are and put some extra money in their pockets at the same time.”

Bathrooms at Park Boulevard homes will have engineered quartz countertops, pot lighting, large tile flooring and tub/shower surrounds and recessed niches for toiletries.

Kitchens feature wood-grain laminate cabinetry with under-cabinet lighting and soft-close hardware. There are engineered quartz countertops, drawer organizers for cutlery, Calacatta tile backsplashes and large under-mounted sinks. The appliance packages are by Bosch and include counter-depth fridges, chimney fans, dishwashers with integrated panels, gas cooktops and wall ovens. Panasonic microwaves with trim kits are also included.

Homes at Park Boulevard feature a choice of three colour schemes, open balconies or terraces for most suites with electrical outlets and wide plank laminate flooring throughout main living areas, bedrooms, closets and flex spaces. There are also stackable or side-by-side front-loading washers and dryers and heating and cooling in every principal room.

“It’s the first building in Surrey that we’ve included full air conditioning and that’s been a huge selling point for a lot of people,” said Murray. “I should also mention that the development includes eight three-storey townhomes along Whalley Boulevard, each with two-car garages and expansive roof decks.”

Park Boulevard will also include amenities such as a garden lounge, a sundeck, an outdoor patio, an indoor pool, a sauna, a hot tub, a steam room, a tepidarium, an indoor badminton court and a fitness centre. One-bedroom homes start at approximately 529 square feet, two-bedrooms at approximately 647 square feet and three-bedrooms at approximately 1,015 square feet. Pricing is available on request.

© 2017 Postmedia Network Inc.

Stephanie Ip
The Vancouver Sun

Avocado toast be damned. Home sales bounced back to nearly record levels across the Greater Vancouver area in May, according to the Real Estate Board of Greater Vancouver’s latest numbers.

Residential home sales hit 4,364 last month, just 8.5 per cent down from May 2016, which saw an all-time record 4,769 homes sold. It was also an increase of 22.8 per cent over April 2017, when 3,553 homes sold.

The numbers shared Friday note that May 2017 was 23.7 per cent above the 10-year May sales average and is the third-highest selling May on record.

Part of the boost is due to first-time buyers and downsizing families competing for the same type of housing, according to REBGV president Jill Oudil, 

“Demand for condominiums and townhomes is driving today’s activity,” said Oudil.

Which means buyers looking for a detached home will soon have more options to pick from and less competition to out-bid, but anyone searching for a condo will have to hunt.

The number of listings also point toward a rebound. New listings for detached, attached and apartment properties across Metro Vancouver numbered 6,044 in May, a 3.9 per cent decrease from the same month last year, but a 23.2 per cent increase compared to April 2017.

The sales-to-active listings ratio — that is, the rate at which properties are selling — across all residential categories is 53.4 per cent; detached homes are at 31 per cent. Analysts note that prices tend to go down when the ratio dips below 12 per cent for a sustained period. Any percentage over 20 for several months will result in prices going up.

The ratio for condos is currently at 94.6 per cent, while the ratio for townhomes is 76.1 per cent.

“While sales are inching closer to the record-breaking pace of 2016, the market itself looks different. Sales last year were driven by demand for single-family homes,” said Oudil.

“This year, it’s clear that townhomes and condominiums are leading the way.”

There are currently 8,168 properties listed for sale on the MLS system across the region, a 5.7 per cent increase over the same time last year and a 4.5 per cent increase compared to April 2017.

The current composite benchmark price for a residential home in Metro Vancouver is $967,500, an 8.8 per cent increase over May 2016 and 2.8 per cent increase over April 2017.

Last month, Australian businessman Tom Gurner blamed millennials’ inability to purchase homes on their apparent love of expensive avocado toast.

The backlash was swift, with many quickly crunching the numbers to show that no matter how much avocado toast is given up, home prices remain far out of reach for many.

© 2017 Postmedia Network Inc.

Steve Randall
REP

The Ontario government has passed its Budget Measures Act which brings in new laws to tackle housing affordability.

The measures include a 15 per cent non-resident speculation tax targeting certain foreign buyers in the Greater Golden Horseshoe, including corporations and trusts.

The tax applies to all residential properties bought in the region from April 21 2017 but there will be rebates for those who become permanent Canadian residents within 4 years of purchase, who work in Ontario for a continuous 12 month period following purchase, and for foreign students subject to conditions.

“Our government is working to make life more affordable for everyone in Ontario,” commented Charles Sousa, Ontario’s finance minister, following the passing of the act Thursday. “This legislation will help to both address the recent price increases in our housing market.”

The lawmakers also passed legislation to reduce the cost of public transit for seniors.

Copyright © 2017 Key Media Pty Ltd

Joannah Connolly
REW

A new record for home prices was set last month as buyer activity rebounded to near-record levels, according to Real Estate Board of Greater Vancouver (REBGV) figures published June 2.

Sales rose nearly 23% compared with the previous month, and were only 8.5% behind those of May 2016, which remains the busiest May on record. Last month’s figures were also nearly 24% higher than the 10-year average for the month.

It’s likely no coincidence that new listings in the region also rose just over 23% compared with April, offering home buyers the inventory needed to boost those transaction numbers. New listings were also down year over year, by nearly 4%.

Although Greater Vancouver never left seller’s market territory, even after the introduction of the foreign buyer’s tax last year that resulted in a dip in sales, May’s sales-to-active listings ratio put the market even more deeply in favour of sellers.

The ratio at the end of May stood at 53.4% across all property types. For context, a balanced market, says the REBGV, is between 12 and 20%.

Even detached homes, sales of which declined the most last fall, are in very high demand at a 31% sales-to-listings ratio. For much-needed townhomes, the ratio 76.1%.

But condos were the hottest commodity. The sales-to-active-listings ratio for condo-apartment units, which stood at 82.2% at the end of April, is now a jaw-dropping 94.6%.

“Demand for condominiums and townhomes is driving today’s activity,” confirmed Jill Oudil, president of the REBGV. “First-time buyers and people looking to downsize from their single-family homes are both competing for these two types of housing.”

Sales and Listings Breakdown

Home sales across the Greater Vancouver region in May totalled 4,363, a rise of 22.8% month over month and a drop of 8.5% compared with May 2016, which was the busiest May for real estate activity on record.

Last month’s figures marks a significant rebound in what had been a somewhat hesitant spring market, with sales 23.7% higher than the 10-year average for the month.

Breaking it down different property types, there were 1,548 sales of detached homes in May – still significantly lower than a year ago, by 17%, but up by nearly 28% since April.

With townhomes, row homes and duplexes, 791 units exchanged hands in May, which is even higher than May last year, up 4.9%, and 27.5% higher than April this year.

Condo sales in May rose nearly 25% over April’s figures, to 2,150 transactions, which is down 5.8% from one year previously.

“While sales are inching closer to the record-breaking pace of 2016, the market itself looks different. Sales last year were driven by demand for single-family homes. This year, it’s clear that townhomes and condominiums are leading the way,” said Oudil.

After being hesitant to list homes due to what seemed to be temporary market uncertainty, many sellers finally gained the confidence to market their properties in May, with new listings rising 23.2% over April to 6,044 homes.

And it wasn’t just condo sellers who responded to the rebounding market. In fact, the month-over-month increase in new listings was led by single-family homes, up 27.1%, followed by condos (up 22.7%) and townhomes (14.1%).

This took the number of available homes for sale at the end of May to 8,168, which is 5.7% more than in May 2016 and 4.5% higher than April 2017.

New Record for Benchmark Prices

May saw the REBGV set another new record for benchmark prices, now at $967,500 for a typical home (composite of all residential property types), blended across the region. This price is 2.8% higher than the last record set a month earlier, 8.8% higher than May last year and 3.7% more than 2016’s overall price peak in August.

Condo-apartment properties remain the runaway winners in terms of price growth, rising 17.8% year over year to $571,300, which is a lift of 3.1% in a single month.

Attached properties such as townhomes saw the next highest growth in typical prices, now at $715,400, up 13.1% in one year and just shy of a 2% increase since April.

Detached home prices, which have dipped and then climbed back since last summer, are catching up with last year’s July record of $1,578,300, now standing at $1,561,000. This is a rise of 3.1% since May last year and 2.9% higher than April, but the only property type not to set a new benchmark price record.

Home prices vary widely throughout the REBGV region. To get a good idea of home prices in a specific location, check the detailed MLS® Home Price Index in the REBGV full statistics package.

© 2017 REW.ca

REP

The Real Estate Board of Greater Vancouver says home sales across the region returned to near record levels in May.

The board says residential property sales totalled 4,364 in May, a leap of 22.8 per cent over the 3,553 homes sold one month earlier.

May’s numbers are about 10 per cent lower than sales recorded in May 2016, but a news release from the real estate board notes properties were changing hands at an all-time record one year ago.

It also says sales last month were 23.7 per cent above the 10-year May sales average and the third-highest selling May on record, despite a 15 per cent foreign buyers tax imposed by the B.C. government last year.

Board president Jill Oudil says sales are inching closer to the record-breaking pace of 2016, but she says the market this year is being driven by a demand for townhomes and condominiums, rather than single-family homes.

The composite benchmark price for all residential properties in Metro Vancouver is currently $967,500, an 8.8 per cent increase over May 2016 and a 2.8 per cent increase compared with April 2017.

Copyright © 2017 Key Media Pty Ltd

Uncertainty forcing real estate appraisers to take a second look

Garry Marr
The Vancouver Sun

The potential for rapidly dropping prices in southern Ontario is forcing appraisers to have a second look at properties they have already assessed to see how much the market has shifted.

Claudio Polito, a Toronto appraiser and principal owner of Cross-town Appraisal Ltd., says lenders basing mortgage decisions on value, as opposed to income and credit history, are really trying to stay on top of a market that appears to be changing rapidly.

By his estimates, prices in the Greater Toronto Area have dropped anywhere from five per cent to 15 per cent over the last 30 days. The next set of statistics from the Toronto Real Estate Board are due out Monday and will mark the first full month of data since provincial changes to cool the market that included a tax on foreign buyers.

“Lenders I deal with they want to know if your property is still worth $1 million if they are loaning you say $650,000,” said Polito. “They don’t base it on anything else. We have to be precise because it’s not a bank, (smaller lenders) can’t afford to lose a dollar.”

It wouldn’t be the first time, appraisals have lagged purchases prices — a phenomenon that previously caught some Vancouver buyers by surprise when it was time to close.

A lower appraisal could increasingly be an issue for people with previous deals, not yet closed, in Toronto, especially when buyers are coming up with only the minimum 20 per cent down payment for a non-government backed loan.

If you buy a home for $1 million with $200,000 down, you need an $800,000 loan to close. But if your appraisal comes in at $900,000, your financial institution will only agree to a maximum $720,000 loan based on 80 per cent debt to 20 per cent equity. Those buyers are left searching for a second mortgage — at a higher rate — to get the extra $80,000 if they can find someone to loan them the money.

“We are seeing some people walk away from deals,” said Polito, because they can’t close — a move that comes with myriad problems if the sellers seek legal damages. “What we are seeing is properties sold in January and February, values are still there but if it sold in March, it is very hard to support the value.” Toronto prices rose 33 per cent in March from a year earlier.

Keith Lancastle, chief executive of the Appraisal Institute of Canada, said the warning for buyers is probably not to get into bidding wars if they don’t have a cushion to come up with a higher down payment. “I would expect it’s quite routine where the appraisals are being done and it’s coming in at lower than people hoped to see.”

He says the volume of sale in Toronto makes it easier to find comparable sales but the pace at which the market is changing makes it “tough to keep up” and that forces appraisers to look at some data and consider whether it’s an anomaly or part of trend.

A more difficult market to assess is one like Calgary, which has seen transactions drying up, making comparisons hard to find.

“The more valid data you have access to, the simpler the task of preparing the appraisal becomes,” said Lancastle. “When the Calgary market was slow, the lender would say we want sales that are within the last 90 days for comparable. If nothing has sold for comparable for 90 days, you ask the lender if they want to extend the time or the geographic window.”

Nicole Wells, vice-president of home equity financing at Royal Bank of Canada, said her institution is relatively conservative when it comes to appraisals to begin with — limiting the impact of a shifting market.

“Given how quickly prices rise, you really have to make sure you are adequately appraising the property,” said Wells. “We always promote affordability, making sure you know what you want and what you can pay. It’s really dangerous to get into a bidding war (with the minimum down payment).”

© 2017 National Post