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Housing Market Charts – April 2011


TREB MLS速 Sales Monthly with Three Previous Years for Comparison 12,000

2008

2009

2010

2011

10,000 8,000

6,000 4,000 2,000 0

Source: Toronto Real Estate Board

Explanation: This chart plots monthly MLS速 sales for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month.


TREB MLS速 New Listings Monthly with Three Previous Years for Comparison 25,000

2008

2009

2010

2011

20,000 15,000 10,000 5,000 0

Source: Toronto Real Estate Board

Explanation: This chart plots monthly MLS速 new listings for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month.


TREB MLS® Sales-to-New Listings Ratio Monthly with Three Previous Years for Comparison 1.10 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00

2008

2009

2010

2011

Source: Toronto Real Estate Board Explanation: This chart plots the monthly MLS® sales-to-new listings ratio (SNLR) for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month. When the SNLR moves higher, annual average price growth generally increases – often at a rate well above inflation. When the SNLR moves lower, annual average price growth generally declines and can become negative.


TREB MLS速 Average Resale Home Price Monthly with Three Previous Years for Comparison $500,000 $480,000 $460,000 $440,000 $420,000 $400,000 $380,000 $360,000 $340,000 $320,000 $300,000

2008

2009

2010

2011

Source: Toronto Real Estate Board

Explanation: This chart plots the monthly MLS速 average home price for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month.


TREB MLS速 Sales Monthly Time Series with Trend Line 12,000 10,000

Actual MLS速 Sales

Trend (12-Month Moving Average)

8,000 6,000 4,000 2,000

Source: Toronto Real Estate Board Explanation: This chart plots monthly MLS速 sales since January 1995. The blue line shows actual sales. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual sales must occur to change the direction of the trend.


TREB MLS速 New Listings Monthly Time Series with Trend Line 22,000 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000

Actual MLS速 New Listings Trend (12-Month Moving Average)

Source: Toronto Real Estate Board Explanation: This chart plots monthly MLS速 new listings since January 1995. The blue line shows actual new listings. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual new listings must occur to change the direction of the trend.


TREB MLS速 Average Price Monthly Time Series with Trend Line 525,000

475,000 425,000

Actual MLS速 Average Price Trend (12-Month Moving Average)

375,000 325,000 275,000 225,000 175,000

Source: Toronto Real Estate Board Explanation: This chart plots monthly MLS速 average price since January 1995. The blue line shows the actual average price. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual average price must occur to change the direction of the trend.


Sales-to-New Listings Ratio (Blue Line)

1.20 1.00 0.80 0.60 0.40 Sales-to-New Listings Ratio

0.20 0.00

Average Price Annual Per Cent Change

25% 20% 15% 10% 5% 0% -5% -10% -15%

Average Price Annual Per Cent Change (Brown Line)

TREB MLS速 Sales-to-New Listings Ratio Compared to Average Annual Per Cent Change in Home Price

Source: Toronto Real Estate Board Explanation: This chart plots the monthly sales-to-new listings ratio (blue line) with year-over-year average annual per cent price change (brown line). When the sales-to-new listings ratio moves higher, average annual per cent change in home prices generally trends higher. When the sales-to-new listings ratio moves lower, average annual per cent change in home prices generally trends lower.


TREB Affordability Indicator Share of Average Household Income Used for Mortgage Principal and Interest, Property Taxes and Utilities on the Averaged Priced GTA Resale Home

55% 50% 45% 40% 35% 30% 25%

Source: Toronto Real Estate Board Data and Calculation; Statistics Canada Explanation: This chart plots the share of average household income that goes toward mortgage principal and interest, property taxes and utilities for the average priced home in the GTA subject to the following assumptions: 1. 2. 3. 4. 5. 6.

Average annual or year-to-date home price as reported by TREB 20 per cent down payment Average 5-year fixed mortgage rate (Statistics Canada); 25-year amortization Average property tax rate reported by/estimated from the Statistics Canada Survey of Household Spending Average utilities cost reported by/estimated from the Statistics Canada Survey of Household Spending and components of the Consumer Price Index Average household income reported by the Census of Canada. Years in between Censuses estimated using interpolation (years up to 2005) or annual growth in average weekly earnings reported by Statistics Canada in the Labour Force Survey (2006 onward).


TREB Market Graphs April 2011