J. Scott Wilson

MARKET UPDATE FOR THE WEEK ENDING FEBRUARY 19TH, 2021

More than two-thirds of Toronto condo investors are planning to sell their properties rather than pay the new vacant home tax, according to a new Toronto Regional Real Estate Board (TRREB) report. Toronto City Council voted to create an implementation plan for a vacant homes tax in the city which would take effect sometime in 2022. The tax would encourage owners to sell or rent out their vacant properties, which would increase housing supply, the City of Toronto said in a news release. Those who do not would need to pay the tax, and proceeds would go toward building new housing supply.

A total of 40 % of those polled at the end of last year said that they intend to sell their investment property in the next year in part due to a prospective vacancy tax, as well as further restrictions on Airbnbs. TRREB has been up front in asking the City to be prudent with its implementation of the tax, calling for exemptions for snowbirds, U.S. citizens, commuters, and other groups.

Using data from Vancouver’s implementation of a vacant home tax as an example, if one per cent of Toronto’s housing stock is vacant, at a tax rate of one per cent on the average Toronto home’s current assessed value, this could equal $55 million to $66 million in tax revenue per year. Toronto’s tax rate will be determined in the tax development process. Determining how a home is deemed vacant will be part of the tax development process, but residential property owners would be required to make a declaration each year about the occupancy status of the home.

On another subject, TRREB is applauding Toronto City Council for listening to the concerns we expressed and has decided to NOT implement an increase to the Municipal Land Transfer Tax on homes priced over $2 million. Had it been approved the portion of the property value over $2 million would have been subject to a 3.5% land transfer tax rate, up from 2.5% - a 40% increase.

MARKET UPDATE FOR THE WEEK ENDING AUGUST 28TH, 2020

As of June 30th, banks have provided help through mortgage deferrals to more than 760,000 Canadians, which represents 16% of the number of mortgages in bank portfolios. The banks were so inundated with requests when the initial announcements were made, that roughly 90% of customers seeking a mortgage deferral were approved. By total volume of mortgages deferred, Quebec, Alberta, and Ontario are leading the country. Quebec represents the largest segment, at 27% the mortgages on deferred payment plans. Alberta is second with 26% of the insured payment deferrals. Ontario comes in third with 21% – just over one in five. Pricey BC is in a distant fourth, representing 7% of the pool.

The next great test for banks will be the looming expiry of these payment deferrals expiring before October 31st and won’t be renewed, raising the risk of defaults. If people on deferrals can’t resolve payment issues before the end of the term, they may be forced to sell. Which brings up a whole other set of problems if you only had 5% equity.

There is some good news. BMO and Scotiabank reported this week that so far, at least 90% of clients at both banks whose deferrals have already expired are making normal payments again. The chief risk officer is cautiously optimistic that the rate of recovery will continue. They believe that only one to five percent of deferred mortgages may become delinquent as the grace period expires.

Even though its late August the freehold market is still going strong, with sold properties up last week 13%, compared to the week before and of those properties sold 68% sold at or above the asking price. Again, it’s a shortage of listings that is causing this frenzy. So far this month the condo market has seen a massive increase in new listings, up 11.5% from July. Sales were up moderately 5% last week from the previous week and of those condos sold 38% sold at or above the list price.

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Port Hope and Cambridge Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.

MARKET UPDATE FOR THE WEEK ENDING APRIL 26TH, 2019

Last week the real estate market took a slight pause while several major religions celebrated their holiest of days all in the same week. With all that behind us and our hopes dashed for a Maple Leafs playoff run, it’s time to concentrate on the task at hand, getting that house all gussied up for the Spring Market. There are flowers to plant and porches to paint. Curb appeal, after all is the name of the game. The market was in full swing before the holidays and with the warm weather finally arriving, it seems that everything was put on hold. Sellers apparently didn’t get the memo as both the number of freehold and condo listings backed off last week.

Freehold listings retreated by a staggering 43% last week. This was one of the largest week-over-week decreases in a number of weeks, with all neighbourhoods affected. Naturally this is not the news that buyers want to hear, as they are still out there waiting to purchase. While listings backed off, sales across the 416 were up 21% from the previous week and of those sold, 64% sold at or above the asking price. Normally after a holiday break is when listings ramp up. Let’s see what happens this week.

Similar to the freehold market, the number of new condo listings has been going up and down like baseball fans doing the wave. Last week listings were back down by 18%, and sales were also down by 12% from the previous week. While not in record territory, nearly 63% of suites sold at or above the list price. Like the freehold market we hope to see more new condos come to market this week.

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Port Hope and Cambridge Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.

MARKET UPDATE FOR THE WEEK ENDING MARCH 29TH, 2019

Now that March is almost over and we seem to be easing into some warmer weather, it appears that Toronto’s real estate market has a bit more “spring” in its step. The Globe reported this week that Toronto has 104 construction cranes, the most tower cranes of any North American city. The next closest city was Seattle with 59 cranes. A tally of cranes in major cities provides a snapshot of economic sentiment. Based on this consulting firm’s findings, no North American city is healthier than Toronto. Just simply look up!

The freehold sector has witnessed its biggest increase of the year with listings up a whopping 117% throughout all neighbourhoods in Toronto. We aren’t surprised that would happen now that we are all back from spring break. Again, it’s the price range between $700,000 and $1,500,000 that dominates, although last week there were over 80 properties listed above $1.5M. There is still a bit of catching up to do on the sales side, however. Sold properties were down 14% week-over-week, but that should change next week now that we have more listings.

Again, a similar market exists in the resale condominium sector. Listings were up last week by 18% and the biggest jump happened in the central core’s first-time buyer’s price range of condos listed between $400K and $700K. Sales have been trending upwards as well, and we are still reporting close to 52% of condo transactions selling at or above the list price which points to continued strength in the high-rise market.

Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Port Hope and Cambridge Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.