Tuesday 18 June 2013

GTA REALTORS(R) Release Mid-Month Resale Housing Figures

June 18, 2013 -- Greater Toronto Area REALTORS reported 4,620 sales through the TorontoMLS system in the first two weeks of June 2013. This result was up by 4.7 percent compared to the 1st two weeks of June 2012. Home sales in the Town were basically flat compared with last year. 

"The expectation was for an improvement in home sales in the 2nd half 2013. Many households have adjusted to tougher lending rules and have renewed their search for possession housing," declared Toronto Real estate Board President Ann Hannah. Early June results are in accordance with this outlook. 

"It is also important to note that new listings were down over the same period. This supports the moderate to strong rates of price growth reported for most major home types, including condo apartments," added Ms. With sales up and new listings down, market conditions became tighter. Hannah. 

The average selling price for the 1st fourteen days of June was $536,141 up by 3.8 % compared with June 2012. 

"While price expansion has been driven by low-rise home types this year, condominium apartment price growth has shown improvement since March. Despite higher inventory levels, there have been enough buyers relative to available listings to support condo price appreciation," related Jason Mercer, TREB's Senior Manager of Market Analysis.

Saturday 15 June 2013

Toronto Land Transfer Tax should be scrapped

TORONTO, June Fourteen, 2013 -- With the City of Toronto's Executive Committee expected to check a City staff report on options for phasing out the Toronto Land Transfer Tax in coming weeks, a new poll is showing powerful public support for getting rid of this tax. 

"The public continues to feel strongly that the Land Transfer Tax should be scrapped. Torontonians know that the land transfer tax is not very good for our City, and they want City Council to follow through on commitments to phase it out," said Ann Hannah, President of the Toronto Real estate Board ( TREB ). 
The poll was conducted by Ipsos Reid, between May 10, 2013 and May Twenty-two, 2013, and discovered that, 
Two thirds ( Sixty five percent ) of Torontonians support plans to eliminate the Toronto Land Transfer Tax ; 
Support for eliminating the land transfer tax with a gradual phase-out approach, as recommended by Mayor Ford, is robust ( Sixty five percent ) ; 
90% of current home buyers feel that they received minimal added value in borough services for the Land Transfer Tax that they paid to the Town ; 
74% of home purchasers in Toronto and the Bigger Toronto Area say they are much more likely to get a home outside of Toronto specifically due to the Toronto Land Transfer Tax ; 
65% of home purchasers who now live in Toronto say they are much more likely to leave Toronto, when they buy their next home, specifically because of the Toronto Land Transfer Tax ; 
"The Land Transfer Tax has hurt Toronto for enough time. We have been talking out against this tax for some considerable time and we'll keep doing so till Town Council takes action. We're pleased with our attempts to stand up for the public and let them know on this issue, and we are going to keep doing that. The general public expects action on this unfair tax before the next municipal election," said Von Palmer, Chief Government and Public Affairs Officer for TREB. 
A study printed last autumn, by the C.D. Howe Institute, discovered that the Toronto Land Transfer Tax is directly responsible for dampening home sales in Toronto by 16 percent. This equates to over 5,000 lost housing sales, including condominiums. A new study, conducted by the Altus Group, determined that each resale housing transaction ends up in over $40,000 in spinoff spending on things like movers, restorations, furniture, and appliances. 
"Home possession is a worthy goal and Town Council should not be making it harder to realize. City Council can, and should, move onward with a responsible phase-out of the Land Transfer Tax," added Palmer.


Sunday 2 June 2013

Key Policy Rate Remained Unchanged

The Bank of Canada's economic outlook and key policy rate remained unchanged when it announced on May 29th2013 it was keeping its trend-setting overnite lending rate One per cent. 

In its April announcement, the Bank recognised the persistent commercial weakness and cut its outlook for Canadian economic growth to 1.5 % in 2013. Although recent business stories means that expansion in the 1st quarter came in stronger than expected, the Bank nevertheless expects annual commercial expansion this year to remain in line with its prediction. 

"The Bank recognizes that expansion in household debt is moderating," declared Gregory Klump, CREA's Chief Economist. 

In a similar fashion, total CPI inflation was a little less tough than projected in the Bank's April MPR, but the Bank still expects inflation to reach its 2 percent target in mid-2015. "It's a constructive development and yet another reason for the Bank of Canada to keep interest rates on hold." 

"The bottom line is that inflation remains moribund and the Canadian economy is still in low gear, so there isn't a reason for the Bank to start raising interest rates any time soon," claimed Klump. "Additionally, the Bank of Canada knows that a sudden shift in direction for IR policy would spook finance markets and gives the Bank a different reason to keep interest rates on hold once incoming Bank of Canada Governor Stephen Poloz takes the helm." 

As of May 29th, 2013, the advertised five-year lending rate stood at 5.14 %, unchanged from the prior Bank rate announcement on April 17th.

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