MARKET UPDATE DECEMBER 2015 The Toronto Real Estate Board had the best November ever! Many are wondering why. The three most obvious reasons are: (1) Low interest rates, (2) Pent up demand from buyers, and (3) Mild weather. December promises to be busy despite the holiday season and we are on track to have the best year ever for Toronto real estate. I expect TREB will record over 100,000 sales for 2015! November figures show home sales were up 6.3%, compared to November 2014, with the average selling price being 11.1% higher. Home ...
MARKET UPDATE December 2015
December 30, 2015
Market Update March 2015
March 30, 2015
MARKET UPDATE MARCH 2015 February, 2015, will go down in history as the month in which the average price of a detached home in the City of Toronto (416 area code) surpassed $1,000,000. The average price of a detached home in the suburbs (905 area code) reached $694,285. Despite concerns of some people, economic indicators remain strong: Real GDP Growth for Q4 2014 was 2.4% The Toronto Employment Growth for January 2015 was 1% The Toronto Unemployment Rate for January 2015 was 1% The Bank of Canada overnight rate in February 2015 was 0.75% The Prime Rate ...
MARKET UPDATE OCTOBER 2014
November 10, 2014
MARKET UPDATE OCTOBER 2014 GTA real estate prices continue to increase, primarily due to historically low interest rates. Over the last couple of weeks the stock market has been volatile among signs of weakness in the international economy. Therefore, it is unlikely that interest rates will increase within the next 6 months. Furthermore, if interest rates were to increase, they would probably begin their rise in the U.S. and the U.K. before they do so in Canada. The Bank of Canada prime rate has been at 1% for the past 4 years, the longest pause in Canadian history. If interest ...
MARKET UPDATE JUNE 2014
November 10, 2014
MARKET UPDATE JUNE 2014 Real estate prices have taken another jump. This is partly because the supply is low and buyers are still very eager to get in the market. There is a huge pent up demand of second time buyers that would like to make a move to a bigger home near an excellent school and amentias. Generation Y (Baby Boomer’s kids) is yearning to move up because. They have outgrown their condo or smaller home. They have kids or are planning to have them. Their wants now include large back yards, swimming pools ...
MARKET UPDATE NOVEMBER 2013
November 27, 2013
MARKET UPDATE NOVEMBER 2013 The autumn Real Estate market has taken many by surprise with the surge in sales and prices. At the beginning of the year, some were predicting that prices and sales volume would drop during 2013. The exact opposite has occurred. In 2013, Real Estate prices increased by 5% and sales volume increased by 4%, in comparison to 2012. We are not yet at the end of this bull market. I agree with Jason Mercer’s prediction that prices will increase again during 2014. Toronto home sales were up by 19.2% last month in ...
Market Update June 2013
July 3, 2013
Last June, Finance Minister Jim Flaherty announced 2 important changes to mortgages. The maximum amortization was reduced from 30 years to 25 years and high ratio mortgage insurance would no longer be available for homes selling over one million dollars. It appears that many purchasers who put off their decision to buy are back in the market place. I am personally noticing that there is presently a huge pent up demand of buyers and sellers which means that sales will be solid for the remainder of the year. The market usually peaks in price and unit ...
July 3, 2012
MARKET UPDATE JUNE 2012 The Toronto Real Estate Market experienced another record month in May. This has motivated the government of Canada to make changes with respect to High Ratio Financing. This is the 4th change to High Ratio Financing within the last 4 years. The four major changes are indicated below: Amortization’s terms are reduced from 30 to 25 years for High Ratio Mortgages. High Ratio Refinancing is reduced from 85% to 80% of the value of the home. No High Ratio Financing for homes over $1,000,000. These homes need 20% down. The GDS(Gross Debt ...
MARKET UPDATE AUGUST 2011
August 22, 2011
It has been an interesting month with respect to the debt worries in the USA and Europe which seem to have caused a stock market correction. It begs the question: “How will it affect real estate in Toronto?” Current world economic woes may have a positive influence for real estate in Toronto the Good. A skittish stock market may encourage investors to park their money in real estate. It may also influence current real estate investors to maintain their holdings and not cash out. The positive outcome from this is the announcement from the US Federal Reserve stating they will ...
August 23, 2009
In my April update, we were sensing that a very hot spring and summer real estate market was upon us, however, I certainly did not expect it to be as strong as it was. We had both record sales and record prices as outlined on the back of this letter. Toronto is one of a few cities, globally, where prices have risen during the past 12 months. Many buyers and sellers have been asking me: �Why is the real estate market in T.O. so busy considering the global economic issues at hand?� This is a tough question to answer and ...