Home prices surge
Toronto realtors expect a “big, new record” for home sales this year, though they’re worried about what the Ontario government may do with taxes.
Their warning to Premier Kathleen Wynne came today as they reported record October results and another surge in prices.
It’s yet another sign of the dramatic appreciation in home values in Toronto and Vancouver, the two cities most cited for being frothy.
Home sales in the Toronto area climbed 3.4 per cent last month to 8,804 from 8,512 a year earlier, and from 8,174 in September, marking a record for October, according to numbers released today.
Video: Morneau needs to watch house prices
But it’s the price growth reported by the Toronto Real Estate Board that’s eye-popping.
According to the MLS home price index, the benchmark surged 10.3 per cent in October from a year earlier, while the average cost rose 7.3 per cent to $630,876.
In the core 416 area, the price for a detached home came in at almost $1.1-million, up 12.5 per cent. The price in the surrounding 905 area was up 9.1 per cent to $734,746.
“We will see a big, new record this year for home sales,” TREB president Mark McLean said in announcing the numbers.
Mr. McLean also fired a shot across Ms. Wynne’s bow, warning that the province could “hamper” sales going forward.
“The Wynne government is seriously considering allowing municipalities throughout Ontario to institute a second land transfer tax on top of the existing provincial tax,” he said, adding that polls suggest many potential buyers would delay a purchase.
Earnings pour in
Big Canadian companies are out in force today with their latest quarterly results.
Auto parts giant Magna, hit by currency fluctuations, posted a 7-per cent drop from a year earlier in third-quarter quarter sales, to $7.7-billion (U.S.). Profit rose to $589-million or $1.42 a share, diluted.
Canadian Natural Resources, hit by the oil shock, posted a loss of $111-million (Canadian) or 10 cents a share.
Telus Corp. boosted its quarterly dividend by 10 per cent to 44 cents as its profit rose to $365-million, or 61 cents a share, basic, from $387-million or 58 cents a year earlier. It also said it would cut about 1,500 jobs, though “a notable number” are via voluntary departures and early retirement.
Europe sees 'moderate recovery'
The European Union is projecting a “moderate recovery despite challenges,” though lamenting slow economic growth.
In a new forecast today, the European Commission projected economic growth of 1.9 per cent this year, 2 per cent in 2016 and 2.1 per cent in 2017.
Forecasts for the euro zone are lower: 1.6 per cent this year, 1.8 per cent next and 1.9 per cent in 2017.
“Against a backdrop of declining oil prices, accommodative monetary policy and a relatively weak external value of the euro, the economic recovery this year has been resilient and widespread across member states,” the EC said.
“It has, however, remained slow.”