Toronto Land Transfer Tax Responsible For Decline In Home Sales

 



New Toronto Downtown Condos



Toronto Land Transfer Tax Should Be Phased Out

In 2008 a detailed study by economists at the C.D. Howe Institute determined that the Toronto Land Transfer tax was responsible for a 16 per cent decline in sales of single-family homes accounting for 3,500 lost transactions in its first year alone.

Toronto Mayor Rob Ford wanted to kill the city's land transfer tax once elected but to date has done "nothing" in getting rid of it as promised.

Toronto is the only city in Canada that imposes a land transfer tax on top of the provincial one. That is $15,086 when buying the average resale home in Toronto worth $572,159. If the same buyer bought the same house in the suburbs it would be $7,100 cheaper.

Now the Toronto Real Estate Board is tracking the level of home sales in the 905 and 416 areas.

February saw home sales up 6.3 per cent in the 416 area with the 905 area recording a huge increase of 23 per cent in home sales.

When home owners decide to renovate rather than move this results in a shortage of home listings.

The sooner the Toronto Land Transfer Tax is phased out the better for Toronto home buyers, sellers and future economic spine-offs estimated to be worth an average of $40,000 per home.

The hot Toronto Condos market has helped contribute a majority of the expected $350 million the city has taken in.

Here are current new and resale Toronto Downtown Condos for sale.

Toronto Condos Unique

 

Toronto Downtown Condos

Toronto Downtown Condos Unique

Toronto Condos with more and more under construction make up the biggest Condominium market in North America.

The first quarter for 2012 recorded 6,000 newly built Condos, the highest ever for a January to March period.

Even with so many new Condos on the market vacancy rates remain low.

Immigration trends suggest Toronto will need between 42,500 and 52,000 new dwellings a year with only 28,500 delivered last year.

Unlike downtown New York, London or Paris, Toronto is unique with many single-family homes and now Condos in its core.

Current new and resale Toronto Condos listings can be found here.

New Toronto Condominium Sales Set Record Q1-2012

 

Toronto Harbourfront Condos

Toronto Condos Record Sales Q1-2012

New Toronto Condominium sales were 6,070 units, the highest of any first quarter on record.

There were 338 active Condo projects, that's a lot of cranes, with 84,698 active units again setting an all time high.

Investors and end-users are continuing to buy with the average new Toronto Condo price of $519 per square foot in the Toronto CMA.

The average price of a new Toronto Condo is $393,000 with an average size of 757 square feet.

Toronto Condos Average Price $369,892

Toronto Downtown Waterfront Condos

The average selling price of a GTA Condo in April was $339,978, up 4 per cent compared to a year ago.

Toronto (416) average Condo Prices were $360,807, up by 3 per cent so many up from a year ago.

Toronto Downtown Condos for sale,(C01) increased to an average price of $425,604, up 5.02 per cent over April 2011. The number of resale Toronto Condos sold increased by 4.6 per cent to 363 Condominiums sold compared to 347 a year ago.

GTA Detached homes were up 9 per cent for an average price of $650,147.

Newer higher priced Luxury Condos are now taking longer to sell.

The affordability price point limit for the majority of new and resale Condos appears to be around $700 to $750 per square foot. Over that amount there are fewer buyers and selling takes longer.

Now the sales to listing ratio has dropped from 49 per cent to 40 percent. A buyers market is 30 per cent so the next several months will show what direction this Toronto Condo market is heading.

A recent TD poll 81 per cent condo buyers worry about affordability of their mortgage payments and interest rates have not risen..yet.

Condominiums Concern Bank Of Canada

 



Toronto Condos Yonge Bloor



 

Toronto Condos Market Concerns Ottawa

Condominiums in major cities across Canada, especially Toronto and Vancouver warrant caution according to the Bank of Canada.

Regulators have tightened mortgage rules three times to cool these housing markets. An increase of interest rates to cool Condos and housing would be the last resort.

Vancouver remains Canada's most expensive housing market including the Condo sector.

Home prices fell in March from a year ago but prices jumped in Toronto by 10.5 per cent due to Condos construction boom.

Canada is fortunate to experience a housing market rally after the recent global financial crisis due mainly to record low borrowing costs.

Search Toronto Condos for sale below:

Toronto Downtown Condos

Yonge and Bloor Condos

Harbourfront Condo Listings

Home,Condo Good Real Estate Investment In Ontario

 

Yorkville Condo Toronto

 

Buying Condo,Home Good Real Estate Investment In Ontario

Ontario residents feel that a Home or Condo is a good investment leading other Canadian regions in a recent RBC Homeownership Poll.

Nine in Ten Ontario Residents (90 per cent) showed confidence in Real Estate and the long-term value of owning your own home due to the steady rode in home prices over the last few years.

When asked if they would buy a home now (59 per cent said yes) or wait until next year (41 per cent) residents of Ontario were in line with the national average.

Residents in Ontario were looking to buy:

• Detached home 68 per cent
• Condominium 8 per cent
• Semi Detached 10 per cent
• Townhouse 9 per cent

Canadians surveyed showed confidence in buying a home and many of the regions residents believe now is the time to get into the housing market.

Condo and Homes for sale in Toronto:

Financial District Condo Listings

Forest Hill Homes For Sale

Willing Buyers Push Toronto Resale Condos, Homes Prices Up

 

Toronto Downtown Condos

Toronto Condos,Home Prices Up In March

The Toronto Real Estate Board reported March sales of 9,690, up 8 per cent from the 8,986 resales of March, 2011.

A lack of inventory is seeing multiple offers by willing buyers who can well afford higher prices due to low mortgage rates.

The average resale home price in the GTA was $504,117, up 10.5 per cent from the same time last year.

Strong competition among Toronto home buyers has resulted in the annual price growths above long-term averages.

Toronto average resale home prices(416 area):

• Detached-$816,169 up 13%
• Semi-Detached-$569,319 up 6%
• Townhouse-$420,208 down -1%
• Condo Apartment-$361,800 up 2%

The average price for a Toronto downtown Condo (C01) was $416,943 for March, up 4%.

The average Condo price in (C08) was $397,870 for March, up 1.6%

The downtown Toronto Condo market is very competitive with more and more Condo projects coming on to the current Toronto Real Estate market now and for several years to come.

Yes there are several more Condo districts in Toronto but we prefer to watch the biggest, the downtown Toronto Condo market.

View current Toronto Downtown Condos for sale or rent below:

Toronto Downtown Condos

Toronto Condos Financial District

Toronto Condos Lending Tightened

Toronto Downtown Condos

Toronto Condos Lending To Be Tightened

Toronto Condos are seeing a tightening in lending standards for Condominium developers.

Canada's biggest banks are asking construction firms to also add more equity into new projects according to Toronto Condo developers.

The Finance Minister continues to warn (again) about the risks of consumer debt and soaring housing prices and a possible Condo bubble in Toronto and Vancouver.

Again, Toronto has more Condo and Commercial skyscrapers under construction than any North American city, three times as many as New York.

Just why the Federal Government wants to cool the Toronto and Vancouver Condo markets is confusing when one major bank reported mortgages on Condos represented less than 8 per cent of their residential mortgage portfolio and Condominium builders represented less than 3 per cent of their commercial-loan book.

My own observations are as follows:

• No Toronto Condo Developer has defaulted in the last few years
• All major Toronto Downtown Condos are sold and rented out when completed
• There continues to be a major demand for downtown Toronto Condominiums
• More and more Toronto Commercial developments are locating downtown, for example The Royal Bank, and Telus.
• As a result even more Toronto downtown Condos needed.

Toronto Downtown Condos For Sale,Rent