NEWS RELEASE



GTA REALTORS® Report April Resale Housing Figures, As TREB Releases New Insights On Foreign Buyers, Speculation, And Multiple Ownership

TORONTO, May 3, 2017 -- The Toronto Real Estate Board has examined property assessment and land registry data in Ontario and has concluded that foreign buyer ownership, as well as speculation by foreign and domestic buyers and multiple ownership in the Greater Golden Horseshoe housing market remains low.

TREB is releasing their analysis of this data at the same time as TREB President Larry Cerqua announces that Greater Toronto Area REALTORS® entered 33.6 per cent more new listings into TREB's MLS® System in April 2017, at 21,630, compared to the same month in 2016. New listings were up by double-digits for all low-rise home types, including detached and semi-detached houses and townhouses. New listings for condominium apartments were at the same level as last year.

Total sales for the TREB market area as a whole amounted to 11,630 – down 3.2 per cent year-over-year. One issue underlying this decline was the fact that Easter fell in April in 2017 versus March in 2016, which resulted in fewer working days this year compared to last and, historically, most sales are entered into TREB's MLS® System on working days.

"The fact that we experienced extremely strong growth in new listings in April means that buyers benefitted from considerably more choice in the marketplace. It 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's recently announced Fair Housing Plan," said Mr. Cerqua.

The MLS® Home Price Index (HPI) Composite Benchmark Price was up by 31.7 per cent year-over-year in April 2017. Similarly, the average selling price for all home types combined was up by 24.5 per cent to $920,791.

"It was encouraging to see a very strong year-over-year increase in new listings. If new listings growth continues to outpace sales growth moving forward, we will start to see more balanced market conditions. It will likely take a number of months to unwind the substantial pent-up demand that has built over the past two years. Expect annual rates of price growth to remain well-above the rate of inflation as we move through the spring and summer months," said Jason Mercer, TREB's Director of Market Analysis.

New Insights on Foreign Buyers, Domestic and Foreign Speculation, and Multiple Ownership

TREB is encouraged that all levels of government, including the Province of Ontario, are making the state of the housing market a priority. However, TREB strongly believes that public policy decisions with regard to the housing market should be evidence-based and supported by empirical data.

In an effort to further the research into foreign buying activity, speculative buying and selling (“flipping”), and ownership of more than one property, TREB analyzed aggregated annual property sales, and aggregated residential data provided by the Municipal Property Assessment Corporation (MPAC) and Teranet Inc. (Teranet) for the Greater Golden Horseshoe (GGH), specifically between 2008 and April 2017.

A summary of TREB’s key findings from an analysis of the data:  

"It is not yet clear what impact the measures contained within the Ontario Government's Fair Housing Plan have had on TREB’s market area or the broader Greater Golden Horseshoe.  Despite the recent uptick in new listings on TREB's MLS® System, we believe that we all have to be committed to a better understanding of issues affecting demand and supply dynamics in our marketplace. TREB will continue to collect and disseminate data on our marketplace and will continue to work with all levels of government as it relates to housing market policy," said John DiMichele, TREB's Chief Executive Officer.

_______________________
Source: Summary data provided by the Municipal Property Assessment Corporation (MPAC). Land registry data sourced from Teranet was used by MPAC in the summary reports.

Important Note: The views and opinions expressed in this report and any related press release are the Toronto Real Estate Board’s. MPAC provided summary statistics only to the Toronto Real Estate Board. No personal information such as property owners’ names or addresses was released.

 

Summary of TorontoMLS Sales and Average Price April 1 - 30, 2017

2017

2016

Sales

Average Price

New Listings

Sales

Average Price

New Listings

City of Toronto ("416")

4,164

943,947

7,015

4,225

766,838

6,131

Rest of GTA ("905")

7,466

907,877

14,615

7,791

725,078

10,059

GTA

11,630

920,791

21,630

12,016

739,762

16,190

TorontoMLS Sales & Average Price  By Home Type April 1 - 30, 2017

Sales

Average Price

416

905

Total

416

905

Total

Detached

1,268

4,447

5,715

1,578,542

1,098,827

1,205,262

Yr./Yr. % Change

-8.7%

-4.1%

-5.1%

25.2%

24.5%

24.3%

Semi-Detached

321

704

1,025

1,104,047

727,218

845,230

Yr./Yr. % Change

-13.2%

-7.4%

-9.3%

22.4%

27.0%

24.2%

Townhouse

381

1,288

1,669

793,129

673,942

701,150

Yr./Yr. % Change

-13.2%

-7.5%

-8.9%

29.7%

30.7%

30.1%

Condo Apartment

2,148

865

3,013

578,280

449,792

541,392

Yr./Yr. % Change

8.0%

6.9%

7.7%

32.3%

31.0%

32.1%

 

April 2017 Year-Over-Year Per Cent Change in the MLS® HPI

 

Composite (All Types)

Single-Family Detached

Single-Family Attached

Townhouse

Apartment

TREB Total

31.70%

33.03%

29.99%

31.81%

29.35%

Halton Region

30.83%

30.10%

31.25%

35.15%

-

Peel Region

32.52%

33.15%

32.46%

33.46%

29.16%

City of Toronto

27.66%

29.74%

25.07%

26.12%

29.19%

York Region

34.04%

35.87%

31.52%

22.52%

29.31%

Durham Region

36.17%

35.34%

33.65%

42.59%

37.62%

Orangeville

29.29%

29.28%

30.64%

-

-

South Simcoe County1

38.05%

38.39%

33.30%

-

-

Source: Toronto Real Estate Board

1South Simcoe includes Adjala-Tosorontio, Bradford West Gwillimbury, Essa, Innisfil and New Tecumseth