February home sales were down compared to the all-time record in 2021, but represented the second-best result for the month of February in history. New listings dropped, but by a marginally lesser annual rate than sales, pointing to a modest move to a slightly more balanced market. Competition between buyers, however, remained tight enough to support double-digit price growth year-over-year.

The Toronto Regional Real Estate Board (TRREB) welcomes the recommendations from the Provincial Government’s Housing Affordability Task Force.  Governments at all levels must take coordinated action to increase supply in the immediate term to begin addressing the supply challenges of today, and to work towards satisfying growing demand in the future.

The GTA remains the primary destination for new immigrants and is at the centre of the Canadian economy. For far too long, governments have focused on short-term band-aid policies to artificially suppress demand. Current market activity highlights decisively that these policies do not work, and unless governments work together to cut red tape, streamline the approval processes, and incentivize mid- density housing, ongoing housing affordability challenges will escalate. On this point, we commend the City of Toronto for moving forward with initiatives to facilitate the creation of more mid-density home types, including their current deliberations on options to encourage more multiplex development across the city.

It is important that governments at all levels make this issue a priority.  We need bold action by governments, so we are encouraged by the Task Force’s recommendations and look forward to reviewing them in detail and providing input to the Minister of Municipal Affairs and Housing.  

TRREB continues to believe that the key issue that governments must address is an inadequate supply of homes available for sale and rent.  The Task Force has warned that Ontario must build 1.5M homes over the next 10 years to address the supply shortage. This is equivalent to half the population of the City of Toronto. We hope the work of the Task Force will move us closer to addressing this issue in a meaningful way.  Much of this issue must be addressed at the municipal level, so we encourage the Province and municipal governments to work cooperatively and collaboratively to benefit home owners, buyers, and renters. 

Kevin Crigger, President, Toronto Regional Real Estate Board

 

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Torrential rainfall across British Columbia forced mass evacuations and extensive damage, with thousands of residents displaced from their homes.

Toronto Regional Real Estate Board (TRREB) REALTOR® Members know the integral role a home plays for individuals and families, which is why our Members have donated $100,000, through TRREB, to the Canadian Red Cross in support of flood and extreme weather relief efforts to offer a helping hand in a time of crisis to our fellow Canadians. With this donation, we are joining the efforts of other organizations, including numerous real estate boards and associations across the country.

Our Members continue to lend a helping hand in other ways to those in need. Since 2008, they have taken part in the $1 per Member per Month Every REALTOR® campaign, allowing organizations and charities to offer vital resources at a time when the most vulnerable in our society need it the most.

Together, we’re working as one to make a difference locally and nationally.

For more information on how our Members give back, visit TRREB.ca.

A series of charts summarizing key residential statistics for the GTA, including an affordability indicator and time series for price, new listings and sales.

The market outlook for 2022 is calling for strong home sales in the Greater Toronto Area (GTA) with the average selling price expected to hit a new record. The latest polling conducted for the Toronto Regional Real Estate Board (TRREB) by Ipsos shows detached homes are on the top of the list for buyers while the percentage of first-time home buyers will likely drop this year. Meanwhile, January began the same way December ended with home sales down.

Condominium apartment rental transactions dipped in Q4 2021 compared to the same period in the previous year. This drop was due to an even greater yearover-year decline in the number of units available to rent. Following tightening rental market conditions, year-over-year growth in average rents accelerated into the double digits, as rents moved closer to prepandemic peaks.

A record fourth quarter capped off a record year for condominium apartment sales in 2021. While condo listings were high from a historic perspective, it was not a record year on the supply side of the market. In fact, condo buyers experienced some of the tightest market conditions in 20 years. Strong competition between buyers led to an acceleration in price growth to a new record, including double-digit annual growth reported in Q4 2021.

A series of charts summarizing key residential statistics for the GTA, including an affordability indicator and time series for price, new listings and sales.

A record 121,712 sales were reported through TRREB’s MLS® System in 2021 – up 7.7 per cent from the previous 2016 high of 113,040 and up 28 per cent compared to 2020. Record demand last year was up against a constrained supply of listings, with new listings up by 6.2 per cent – a lesser annual rate than sales. The result was extremely tight market conditions and an all-time high average selling price of $1,095,475 – an increase of 17.8 per cent compared to the previous 2020 record of $929,636.

With Toronto City Council set to consider a motion by a councillor to ask the provincial government to impose another tax on the sale of non-principal resident homes, referred to as a “speculation tax,” the Toronto Regional Real Estate Board (TRREB) is warning about the potential unintended impacts of such a tax. This tax would be on top of an existing substantial federal capital gains tax on these properties, and TRREB is urging City Council to focus instead on options targeted at increasing the supply of affordable homeownership.

Home sales reached a new record for the month of November, and the average selling price also reached a new all-time high. New listings were down substantially compared to last year for all market segments – further highlighting the inherent supply issue across all home types in the Greater Toronto Area (GTA).

Toronto City Council has adopted a new Inclusionary Zoning policy framework intended to get more affordable housing built across Toronto.

The City of Toronto is the first city in Ontario to implement inclusionary zoning which will require certain new residential developments to include affordable housing units.

Council approved an Inclusionary Zoning Official Plan amendment, a Zoning Bylaw amendment and draft Implementation Guidelines, which will make it mandatory for certain new developments around Protected Major Transit Stations Areas to include affordable rental and ownership housing units beginning in 2022.

TRREB’s input to the City, during consultations on this policy, indicated that inclusionary zoning may be able to help Toronto’s housing needs, but raised numerous issues including the need for a delayed and phased implementation, which were included by City Council in the final version that was adopted. TRREB’s detailed submission to the City is available here.

Details of the Inclusionary Zoning Policy include:

  • will require five to 10 per cent of condominium developments (over minimum unit thresholds) as affordable housing, increasing gradually to between eight per cent to 22 per cent by 2030,
  • the amount of affordable housing required will vary depending on where in the city the development is located and whether the units are intended for rental or ownership, with the highest requirements in the Downtown area, followed by Midtown and Scarborough Centre. The policy also requires that the affordability of these units is maintained for 99 years,
  • will be closely monitored and reviewed after one year to allow for adjustments that may be required, including changes to the phase-in and/or set aside rate, alterations to the minimum development size threshold and any other changes needed to ensure market stability and production of affordable housing units,
  • rent and ownership prices will be centred on new income-based definitions of affordable housing, targeting households with an annual income of between $32,486 and $91,611.

More detail on the City’s policy is available here.

TRREB will be monitoring the implementation of this policy and provide input to the City, as appropriate.

Toronto City Council has approved a new small business property tax class, to allow for a 15 per cent property tax reduction for small businesses. TRREB has supported this policy as an important way to encourage economic development.  

The new small business property tax subclass will come into effect for the 2022 tax year. It is estimated that property tax reductions will apply to approximately 25,000 small businesses across Toronto, or 60 per cent of all commercial properties.

Businesses will be eligible if they meet either of the following criteria:

  1. Businesses located downtown, on the central waterfront, in designated growth centres or avenues in the City of Toronto’s Official Plan:
    – Properties must be classified within the commercial or new commercial tax class
    – Properties must have a Current Value Assessment (CVA) of less than or equal to $7 million
    – Lot size must be 7,500 square feet or less;, or for commercial condos, a gross floor area of 2,500 square feet or less
  1. Businesses located anywhere else in the city:
    – Properties must be classified within the commercial or new commercial tax class
    – Properties must have a CVA of less than or equal to $1 million

Small business property owners do not need to apply for this tax relief, as all commercial properties will be assessed for eligibility. A request for reconsideration or appeal process will be available for property owners who feel that their property should be included in the new tax subclass.

The City of Toronto has indicated that the provincial government is expected to match the municipal tax rate reduction with a corresponding reduction in the business education tax for all eligible small business property owners.

More detail on the City’s new Small Business Property Tax Class is available here.

Home sales in the Greater Toronto Area (GTA) reached the second-highest level on record for the month of October. However, the inventory of homes for sale did not keep up with demand. The number of new listings was down by approximately one-third compared to October 2020. Market conditions tightened across all major home types compared to last year, and the annual rate of average price growth remained in the double digits, including for the resurgent condominium apartment segment.

Accelerating economic recovery from the pandemic has spurred renewed demand for rental accommodation in 2021. In the third quarter, there was a double-digit increase in the number of condominium apartment rental transactions reported through the Toronto Regional Real Estate Board's (TRREB) MLS® System. Over the same period, tightening market conditions resulted in an increase in average rents across all unit types.

The condominium apartment market has experienced strong growth in 2021 and this continued in the third quarter. Sales in Q3 were up substantially compared to the same period last year. In addition, the condo inventory that built up during the initial phases of COVID has been more than absorbed with listings down significantly compared to last year. The result has been the resumption of seller's market conditions, and above-inflation price increases relative to 2020.