{"id":11903,"date":"2017-05-03T16:40:09","date_gmt":"2017-05-03T20:40:09","guid":{"rendered":"http:\/\/www.zoocasa.com\/blog\/?p=11903"},"modified":"2017-05-05T10:01:31","modified_gmt":"2017-05-05T14:01:31","slug":"toronto-homes-for-sale-rise-33-6-following-fair-housing-plan-reveal","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/toronto-homes-for-sale-rise-33-6-following-fair-housing-plan-reveal\/","title":{"rendered":"Toronto Homes for Sale Rise 33.6% Following Fair Housing Plan Reveal"},"content":{"rendered":"<p>When the Ontario government revealed the new <a href=\"https:\/\/www.zoocasa.com\/blog\/ontario-to-get-foreign-buyer-tax-as-fair-housing-plan-revealed\/\">Fair Housing Plan<\/a> on April 20, they intended to shake up the market \u2013 and in that regard, they\u2019ve certainly succeeded. New measures rolled out to discourage foreign buyer and speculative investor activity have been met with mixed response; while consumers have applauded efforts to improve housing affordability, analysts have expressed doubts whether the 16-part plan will have its desired effect on the market.<\/p>\n<p>The dust has yet to settle, and it\u2019s too soon to tell whether the changes have profoundly impacted buyer and seller behaviour. However, the <a href=\"http:\/\/www.trebhome.com\/market_news\/release_market_updates\/news2017\/nr_market_watch_0417.htm\" target=\"_blank\">April numbers from the Toronto Real Estate Board<\/a> (TREB) and condo-data think tank <a href=\"https:\/\/www.urbanation.ca\/blog\/2017-05\/record-new-condo-sales-causes-inventory-plummet\" target=\"_blank\">Urbanation<\/a>, offer glimpses of early market reaction.<\/p>\n<h2>TREB: House Sellers Looking to Cash In<\/h2>\n<p>While prices have yet to subside in the Greater Toronto Area \u2013 the average sale price in the region increased a blistering 31.7 per cent year over year, to an average of $920,791 \u2013 a notable surge of new listings came to market in April.<\/p>\n<p>The number of Toronto homes\u00a0for sale via MLS rose 33.6 per cent from 2016, with 21,630 homes up for grabs. While part of this can be attributed to the spring <a href=\"http:\/\/www.zoocasa.com\/toronto-on-real-estate\">Toronto real estate<\/a> market&#8217;s usual uptick, the vast majority of new homes coming to market are in the detached, semi-detached and townhome segments, while the number of new condo listings remained the same. This suggests house owners, who have enjoyed astronomical returns on their home investment, may now feel it\u2019s time to cash in, alleviating\u00a0years of extremely tight low-rise inventory in\u00a0the city.<\/p>\n<p>It\u2019s possible the increase is due to the province\u2019s new measures, says TREB President Larry Cerqua, though he points out such a trend would need to persist for many months to balance the GTA market.<\/p>\n<p>\u201cThe fact that we experienced extremely strong growth in new listings in April means that buyers benefitted from considerably more choice in the marketplace,\u201d he said. \u201cIt is too early to tell whether the increase in new listings was simply due to households reacting to the strong double-digit price growth reported over the past year, or if some of the increase was also a reaction to the Ontario government\u2019s recently announced Fair Housing Plan.<\/p>\n<p>\u201cIt will likely take a number of months to unwind the substantial pent-up demand that has built over the past two years.\u201d He adds buyers and sellers can expect to see annual price growth to remain much higher than that of inflation, especially as the market enters the spring and summer real estate season.<\/p>\n<p>In total, the GTA market saw a slight 3.2-per cent year-over-year dip in sales &#8211; \u00a0which TREB attributes to the April Easter weekend \u2013 with 11,630 homes changing hands, 4,164 within the City of Toronto (at an average price of $943,947), and 7,466 within the 905 region ($907,877).<\/p>\n<p>The price of a detached home remains above the $1-million mark, at $1,578,542 and $1,098,827 in the 416 and 905, respectively.<\/p>\n<p>Condo sales rose 8 per cent in the city proper, to an average price of $578,280, and 6.9% to $449,792 in the \u2018burbs.<\/p>\n<h2>Evidence Against Widespread Real Estate Speculation<\/h2>\n<p>TREB has been critical in its response to the province&#8217;s\u00a0move, saying more empirical data should have been gathered before concrete changes were introduced, and they took the opportunity to release new study findings alongside last month\u2019s numbers.<\/p>\n<p>Using an assessment of land registry data in Ontario, residential data from the municipal Property Assessment Corporation, and info from Teranet from 2008 to 2017, they&#8217;ve found instances of foreign buying to be low throughout the Greater Golden Horseshoe. The number of buyers with a non-Canadian mailing address was \u201cwell-below\u201d 1 per cent each year, with the majority of such buyers residing in the United States.<\/p>\n<p>The average share of foreign buyers in the GGH was 2.3 per cent between 2008 \u2013 2015, dipped to 2.2 per cent in 2016, and rose to 2.6 per cent between January and April of this year. TREB also finds 90-plus per cent of such buyers purchase homes to live in, not as investments.<\/p>\n<p>The study also finds that home transactions that could be classified as speculation \u2013 those bought and sold within one year \u2013 totaled less than 5 per cent of all purchases in 2017, and that the ratio of homeowners with more than one property was only 6.2 per cent in the GGH.<\/p>\n<p><strong>UPDATE:<\/strong> The Ontario Ministry of Finance has countered TREB&#8217;s findings, claiming\u00a0they&#8217;re off the mark, and defending their decision to tax foreigners purchasing property in Ontario. <a href=\"http:\/\/www.cbc.ca\/news\/canada\/toronto\/ontario-real-estate-foreign-1.4097935\" target=\"_blank\">In a statement given to the <em>CBC<\/em><\/a>, the province wrote, &#8220;the residency of many individuals captured in the data set is unknown and, as a result, this is not a reliable way to determine the number of non-residents participating in the housing market.&#8221;<\/p>\n<p>&#8220;There is also no strong correlation between the number of non-resident purchasers and the number of out-of-country mailing addresses attributed to buyers.&#8221;<\/p>\n<h2>Urbanation Data Paints a Different Picture<\/h2>\n<p>However, the first-quarter numbers released by Urbanation tell a different story regarding speculative activity.<\/p>\n<p>Their report finds the GTA condo market continues to sizzle, with 2.5 months of inventory \u2013 a 15-year low \u2013 and sales up a huge 73 per cent (9,932 units) during the first three months of the year.<\/p>\n<p>The average price for a unit rose to $733 per square foot within the 416, and $608 per square foot in the 905. Part of this is due to the rampant demand and boost in new launches \u2013 6,293, compared to 3,061 units built and registered in 2016. Units not sold at the end of the quarter sat at $719 per square foot, a 20-per cent annual increase.<\/p>\n<p>What\u2019s most telling though, are more units are selling \u2013 sometimes multiple times \u2013 after just being built or coming to the resale market for the first time.<\/p>\n<p>\u201cFollowing the recent strength in condo price appreciation, (there was) an increase in resale activity within newly completed buildings as well as more units transacting twice within shorter timeframes,\u201d said Shaun Hildebrand, senior vice president at Urbanation, who adds that while some activity could be due to outpriced buyers downsizing their real estate expectations, data supports speculative activity.<\/p>\n<p>\u201cThe shortening of holding periods for some condo buyers is an outcome of the rapidly accelerating market. Although the share of short-term condo participants still appears relatively low, it will be important to monitor the situation closely going forward as market conditions evolve.\u201d<\/p>\n<p>The number of homes that sold within two years of being built and registered rose 69 per cent from 2016, while 249 resale units sold in Q1 for the second time within a one-year period \u2013 a 53-per cent increase.<\/p>\n<p>Pre-concept condos also prove more popular than resale, with 6,203 units sold (+24 per cent).<\/p>\n<p>The average price for all units in the GTA region is now $510,000.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When the Ontario government revealed the new Fair Housing Plan on April 20, they intended to shake up the market \u2013 and in that regard, they\u2019ve certainly succeeded. New measures rolled out to discourage foreign buyer and speculative investor activity have been met with mixed response; while consumers have applauded efforts to improve housing affordability, [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":11905,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"footnotes":""},"categories":[33,181],"tags":[],"class_list":["post-11903","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-news","category-toronto-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Toronto Homes for Sale Rise 33.6% in April | Zoocasa Life<\/title>\n<meta name=\"description\" content=\"The number of Toronto homes for sale surged a whopping 33.6% in April, following new rules 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