Virtually Toronto Real Estate: News and Information
for August 2003
TODAY'S TOPICS
-Toronto Real Estate Board 'MarketWatch'
August 2003
-Price Is A Matter Of Perspective
-Canada: A Nation On The Move
-Ontario Place
-MARKET WATCH-AUGUST 2003-
8,084 Sales for Best July, 2nd Best Month Ever
The Toronto residential resale market continued its hot summer
run in July with 8,084 residential properties sold during the
course of the month, Toronto Real Estate Board President Cynthia
Lai announced today, "Sales were up an incredible 39 per
cent over the 5,807 sales recorded in 2001, which was our previous
best July, and up an even more incredible 41 per cent from the
5,727 sales recorded in July of 2002.
Last month was also the second best month ever seen in TREB's
history, the best being April of 2002, when 8,181 sold properties
passed through the TorontoMLS system, and was only the fifth
time Toronto passed the 8,000 sale barrier."
"It has been an extremely unusual year," Ms. Lai
went on to note,
"the market actually strengthened into the summer months
after a relatively lackluster spring, which is the opposite of the
usual
pattern. If the second half maintains the current pace, 2003
will prove the best year for Toronto resales ever recorded."
Prices declined for the second straight month in July, as the
average
price fell almost two per cent to $289,880 from June, due in
part to a
decline in the number of upper-end homes sold in the central
area of
Toronto. This figure was up six per cent from the $274,348 recorded
in July of 2002.
Breaking down the total, 3,091 sales were reported in TREB's
28 West
districts and averaged $272,669; 1,308 sales were reported in
the 14
Central districts and averaged $364,137; 1,591 sales were reported
in
the 23 North districts and averaged $323,172; and 2,094 sales
were
reported in TREB's 21 East districts and averaged $243,608.
TREB Market Watch (August 2003)
-PRICE IS A MATTER OF PERSPECTIVE-
When Statistics Canada reports that house prices continue to
rise across Canada, that does not automatically make your home
worth more.
Using a statistical measure called the New Housing Price Index,
contractors'
selling prices are compared month by month and annually to track
patterns in prices using the newly-established standard of 1997=100.
For example, based on the May 2003 New Housing Price Index,
the following observations were made:
New house prices continued their climb in May, up from 0.4%
in
April to 0.6%. On a 12-month basis, the Index advanced 4.4%.
This
is down slightly from last month when the published annual
increase was 4.5%. A favourable housing market and higher prices
for inputs, such as labour and land, continued to push
prices up nationally.
Even in the midst of a healthy housing market, some areas experience
stagnant or dropping prices. Charlottetown, Kitchener-Waterloo,
Windsor, Sudbury-Thunder Bay, Winnipeg and Saskatoon showed
no monthly price changes in the New Housing Price Index, a key
measurement in determining the health of construction and real
estate industries.
The rate of price increase also differs regionally. For example,
for the third consecutive month, Quebec City registered the largest
12-month increase (+9.2%) for new homes followed by Hamilton
ON (+7.0%) and Regina (+6.7%).
Monthly price rises occurred in 15 of the 21 urban centres
surveyed by Statistics Canada. Of the centres with the strongest growth,
St. Catharines-Niagara led the way with an increase of 1.3%
followed by increases of 1.1% in Toronto and Saint John-Moncton-Fredericton.
Significant increases were observed in Vancouver (+0.8%) and
Hamilton (+0.6%). Home builders in all these areas credited
favourable market conditions along with higher prices for building materials
and labour with the increase. Home builders in Saint John-
Moncton-Fredericton, Vancouver and Hamilton also noted
higher land values.
FYI: Federal government housing analysts converted the time
base of the indexes from 1992=100 to 1997=100 with the May 2003 New
Housing Price Index release. Methodology for aggregating individual
price quotes to city, regional and national level indexes are
the only things that changed. The new 1997=100 series will be available
retroactively from January 1981 so the index movement between
January 1981 and April 2003 will be the same for the 1992=100
and 1997=100 series. The 1992=100 based NHPI will not be
updated after April 2003.
So where do the statistics leave you?
If you are selling an older home to buy a new house or condominium
in a comparable area, you may find the value gradient goes against
you. Increases in new home prices may escalate prices of nearby
resale homes, but for properties that require extensive modernization
or maintenance, significant land value increases may be necessary
before property values rise.
If you want to buy into a better area and new housing is all
that is available, you may find that your housing dollars do not
go quite as far.
If you're selling in a preferred area to move into a new condominium
community, you may gain on the move.
Neighbourhood and regional pricing differences should be taken
into account when selecting a new location. The dollar gap between
what you net in a sale and what you'll spend-- that tax-free
liberated home equity -- may be essential to preserve your standard of
living in the new home. Most experienced real estate professionals
offer free comparative market analysis (CMA) for sellers so that they
receive a clear picture of current real estate value when establishing
list price.
List price and selling price will also be determined by the
condition of your property. Twenty- or thirty-year-old plumbing and electrical
systems may make your house less attractive to buyers who compare
your property with available new homes.
When buying, don't settle for off-the-cuff price quotes. Today's
astute buyers should ask their buyer-agent for a CMA of any
property they consider buying to be sure listing price reflects CMA numbers
and that pride of ownership has not made the seller overly optimistic.
Make your decisions about buying and selling relative to your
needs and your market as ever-changing statistics make a poor foundation.
Statistics Canada's May 2003 Building Permits release reported
the value of building permits declined in May as construction intentions
for single-family homes hit a 17-month low. Builders took out
$3.9
billion worth of building permits, down 2.0% from April and
a decrease
that has continued for four months. But don't panic, Statistics
Canada
analysts assure Canadians that "despite month-to-month
fluctuations
this year, Canada's building sector is still performing
strongly."
(realty times)
-CANADA: A NATION ON THE MOVE-
Statistics Canada describes this country as "a nation on
the move." According to the most recent Census, four in
10 Canadians picked up and moved between 1996 and 2001. Research
shows Canadians are still heading west, but stopping at the
Rockies. Young adults continue to flock to large metropolitan
areas while those over 65 leave urban areas for smaller cities
or rural locations.
Although 11,710,300 individuals aged five and over changed
addresses
during the five-year period between 1996 and 2001, the overall
rate at
which Canada's population moved declined to its lowest level
in more
than two decades.
Movers represented 41.9% of the total population aged five
and over in 2001,
down from 43.3% in 1996 and down sharply from 46.7% in 1991.
Statistics
Canada analysts credit this decline to growth in the older population
who
have tended to move less than young adults.
Almost half of the moves were short-distance transplants within
the same
municipality. About 12.8% of movers uprooted to another municipality
inside the same province. Only about 905,700, or almost 3.2%,
moved from
one province or territory to another and only a fraction of
those
Canadians were over age 65.
Statistics Canada analysts see the decline in mobility beyond
age 25 as a
reflection of the aging of children in a family and their enrolment
in school.
Compared to 50% of the population aged 15 to 29 moving between
1996 and
2001 and about 5% leaving their province, only 27 % of adults
aged 45 to 64
changed addresses and only 2.0% changed province or territory.
Similarly,
among adults aged 65 and over, only 18.3% changed addresses
while 1.2%
changed province or territory.
Moving involves more than a change of address. Whether you
live in a house,
semi, condominium, apartment or any other type of housing, your
home:
Is a symbol of your independence and autonomy Fulfils many
of your
emotional, spiritual and social needs Is at the center of the
community
that supports your lifestyle Affects your financial and physical
well-being
Allows control over your life and relationships
Although individual circumstances vary, once the kids leave
home and career
moves are no longer the driving force behind relocation, people
move for one
or more of the following-- usually unanticipated--reasons:
1.Costly home repairs, renovations or modernizations become
necessary.
2.Changes in personal mobility of one or both spouses.
3.Altered requirements for accommodation which make the home
too big or
too small for family needs or obligations.
4.Increased financial stresses which may include increased property
taxes
or decreased income.
5. Dramatic changes in personal relationships including divorce,
remarriage or severe illness or death of a spouse.
6.Increased availability of housing alternatives in the desired
neighborhood.
7.New lifestyle interests which make another location more attractive
or a different type of housing more suitable.
Reviewing this list and preparing "What if" back-up
plans may help your moves
become voluntary changes not forced relocations. When and if
you do decide
to move, be sure that this is the best way to preserve or improve
your standard of
living, and to maintain your independence.
(realty times)
-ONTARIO PLACE-
Located on the Lake just across from The Canadian Natuina Exhibition
grounds 'Ontario Place' offers a variety of ways to have fum
for every age in the family. See the website to find out more
about Cinesphere, Molson Ampitheatre, the Marina and the Kids
Pavillion. http://www.ontarioplace.com/en/index.htm
