Wednesday, January 8, 2014

REALTORS..Call For Home Buying Tax Relief For Everyone.

TORONTO, January 7, 2014 - With the City of Toronto Budget Committee wrapping-up its review of the
City’s 2014 Budget today, the Toronto Real Estate Board (TREB) is calling for City Council to move
forward with providing relief from the Toronto Home Buying Tax (Land Transfer Tax) for all home buyers,
and to continue providing dedicated relief for first-time home buyers. TREB’s views are being echoed by
thousands of Torontonians who have been contacting City Councillors by email and other means.

“The Home Buying Tax hurts people when they can least afford it. It penalizes people like growing
families or retirees. City Council should do its part in keeping Toronto affordable by providing relief from
the Home Buying Tax for all home buyers,” said Dianne Usher, President, Toronto Real Estate Board.

The City’s Budget Committee will be considering a motion to almost eliminate the Land Transfer Tax on
the first $250,000 value of a property, for all home buyers, but to also eliminate the existing rebate that
provides relief for first-time home buyers on the amount of Land Transfer Tax payable up to a $400,000
home. If implemented, such a proposal would mean that repeat home buyers would pay about $2,000
less Land Transfer Tax, which TREB believes is a good step in the right direction. However, the proposal
would also result in first-time home buyers paying an additional $1,695 in Land Transfer Tax. TREB has
spoken out against the proposal to make first-time home buyers pay more Land Transfer Tax, telling the
Budget Committee that all home buyers, including first-time buyers, deserve relief from the Land Transfer
Tax. In addition, TREB pointed out that first-time home buyers deserve more relief, not less, because the
current first-time buyer rebate caps out on a $400,000 home, but the current average price of a Toronto
home is approximately $570,000 and rising.

“Even first-time home buyers purchasing below average–priced properties are currently being forced to
pay thousands of dollars in Toronto Home Buying Tax. Any proposal to eliminate the first-time buyer
rebate would make this situation worse. First-time home buyers deserve more relief, not less,” said Von
Palmer, TREB’s Chief Government and Public Affairs Officer.

TREB has also pointed out to the City’s Budget Committee that the current tax rates of the Home Buying
Tax are regressive because they force people purchasing below-average priced homes to pay the highest
tax rate. Currently, the highest Land Transfer Tax rate kicks in on homes priced over $400,000 for ALL
home buyers, considerably lower than the City’s current average price of approximately $570,000 and

“The Home Buying Tax has become more and more regressive as home prices have increased, because
its tax rates have not been adjusted with inflation. Someone purchasing a home priced below the City’s
average price is being charged the highest tax rate. That’s not right,” said Palmer.

TREB is encouraging the public to visit to tell City Council to do the
right thing and phase out the Home Buying Tax. Thousands of Torontonians have already done so.

Monday, January 6, 2014

Toronto MLS Average Resale Home Price December 2013

Toronto MLS Sales-To-New Listings Ratio December 2013

Toronto MLS New Listings December 2013

Toronto MLS Sales December 2013

Market Watch Sales and Average Price Up in Calendar Year 2013

January 6, 2014 -- Greater Toronto Area REALTORS® reported 4,078 residential transactions through the TorontoMLS system in December 2013 – up by almost 14 per cent compared to 3,582 sales reported in December 2012. New listings entered into the TorontoMLS system were down by almost four per cent over the same period.
Total sales for calendar year 2013, at 87,111, were up by approximately two per cent compared to 85,496 transactions in calendar year 2012.
“After a slow start to the year, sales growth accelerated to a brisk pace in the second half of 2013. Despite the inclement weather in December, we finished the year with a respectable gain in transactions compared to 2012. Looking forward, I believe that home ownership in the GTA will remain affordable as borrowing costs stay low. The result could be a further increase in sales in 2014,” said Toronto Real Estate Board President Dianne Usher.
“The average selling price will be up again in 2014 and by more than the rate of inflation. The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
The average selling price for December 2013 sales was $520,398 – up by 8.9 per cent compared to the average of $477,756 in December 2012.
The average selling price for 2013 as a whole was $523,036, which represented an increase of 5.2 per cent compared to the calendar year 2012 average of $497,130.