TORONTO, ONTARIO, January 4, 2018 – Toronto Real Estate Board President Tim Syrianos
announced that Greater Toronto Area REALTORS® reported 92,394 sales through TREB's MLS®
System in 2017. This total was down 18.3 per cent compared to the record set in 2016.
Record sales in Q1 were followed by a decline in Q2 and Q3 after the Ontario Fair Housing Plan
(FHP) was announced. The pace of sales picked up in Q4, as the impact of the FHP started to
wane, and some buyers arguably brought forward their home purchase in response to the new
OSFI stress test guidelines effective January 1, 2018.
"Much of the sales volatility in 2017 was brought about by government policy decisions.
Research from TREB, the provincial government and Statistics Canada showed that foreign
home buying was not a major driver of sales in the GTA. However, the Ontario Fair Housing
Plan, which included a foreign buyer tax, had a marked psychological impact on the
marketplace. Looking forward, government policy could continue to influence consumer
behavior in 2018, as changes to federal mortgage lending guidelines come into effect," said Mr.
The average selling price for 2017 as a whole was $822,681 – up 12.7 per cent compared to
2016. This annual growth was driven more so by extremely tight market conditions during the
first four months of the year. In the latter two-thirds of 2017, fewer sales combined with
increased listings resulted in slower price growth. In December, the MLS® Home Price Index
(HPI) Composite Benchmark was up by 7.2 per cent year over year, and the overall average
selling price was up by 0.7 per cent year over year.
"It is interesting to note that home price growth in the second half of 2017 differed substantially
depending on market segment. The detached market segment – the most expensive on
average – experienced the slowest pace of growth as many buyers looked to less expensive
options. Conversely, the condominium apartment segment experienced double-digit growth, as
condos accounted for a growing share of transactions," said Jason Mercer, TREB's Director of
Toronto Real Estate Board
Government Announces Provincial LTT Changes
November 14, 2016 -- The provincial government has announced significant changes to the Provincial Land Transfer Tax (PLTT), including a doubling of the rebate available to first-time home buyers, bringing it in line with the City of Toronto's rebate, and an increase in the PLTT paid on the portion of the price of properties over $2,000,000 to help pay for the increase in the first-time buyer rebate.
The provincial government is proposing to double the maximum rebate for first-time home buyers from $2,000 to $4,000. This change would bring the PLTT rebate in line with the City of Toronto LTT rebate. The real estate industry welcomes this change, which will help to make housing more affordable in the GTA.
The provincial government is proposing to increase the PLTT for homes priced over $2,000,000 by charging 2.5% on the portion of the value above $2,000,000 (currently this portion is charged 2%).
For non-residential properties, the provincial government is proposing to increase the PLTT on the portion of the value above $400,000 to 2% (currently this portion is charged 1.5%).
As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016 would not be subject to the increased rates of tax.
TREB welcomes the increase to the provincial first-time buyer rebate to bring it in line with a similar rebate in the City of Toronto as long overdue. TREB, however, always has concerns with tax increases on property, and governments should be focused on measures to make property ownership in the GTA more affordable, not more expensive.
The provincial government is proposing to restrict eligibility of the first-time home buyer rebate to Canadian citizens and permanent residents, effective January 1, 2017. As a transitional measure, purchasers who entered into agreements of purchase and sale on or before November 14, 2016 would remain eligible for the refund, regardless of citizenship or residency status.
Toronto Real Estate Board
New Down Payment Requirement Starting Feb. 15, 2016
TORONTO, December 12, 2015 – Finance Minister Bill Morneau on Feb.11, 2015 announced changes to the rules for
government-backed mortgage insurance to contain risks in the housing market, reduce taxpayer exposure and
support long-term stability. Effective February 15, 2016, the minimum down payment for new insured mortgages
will increase from 5 per cent to 10 per cent for the portion of the house price above $500,000. The 5 per cent
minimum down payment for properties up to $500,000 remains unchanged.
See below my graphics on the changes and my impact assessment on the housing market.
No Ontario communities outside Toronto to have land transfer tax
TORONTO, December 1, 2015 - There will be no extension of Municipal land transfer
tax beyond Toronto. Toronto has been charging municipal land transfer tax on top
provincial land transfer tax. The Ontario Real Estate Association was arguing against
the additional land transfer tax and as a result this and other consultations by the
Municipal Affairs Minister Ted McMeekin, he has decided not to extend the municipal
land transfer tax beyond Toronto.
February 8, 2012 - Canadian Real Estate Association (CREA) and five other major real estate boards
including Toronto Real Estate Board have developed a new index to measure the trend in house prices
and inflation in the housing market. There are a number of indices under MLS® HPI indices.
This is similar to Consumer Price Index (CPI) that is a measure of consumer price inflation.
Read more ...