Subscribe to Mark's valuable RE/MAX
Real Estate newsletter You will receive
useful Real Estate information for Mississauga
and surrounding areas. Plus you will learn
many tips and secrets when selling or buying your
home, I will show you where to find the 'best'
mortgage interest rates as well as provide you
with timely information and a comprehensive overview
of GTA price trends.
NOTE: You can often negotiate a discount of 0.3 - .5%
or more off posted rates. "Best" Mortgage
Rates
BANK PRIME RATE
As of
August 17, 2015
the Bank Prime Rate
was
3.00%
The Bank of Canada announced no change
in the bank rate, read
more. On September 8th, 2010 the Bank of Canada increased the
prime lending rate another .25% to make it 1.00%. and it has stayed at
that amount since September 8, 2010. The Bank prime rate is 2%
higher than this, so Bank Prime charged to the public is now 3%
The major banks in Canada charge their
best customers 2% above the Bank of Canada Prime Rate, which means that
the Bank Prime or Prime Rate that we see is now 3.00%
Bank Prime Rate means "best" and this
is the rate that banks charge their absolute best customers for loans,
which is usually only other lending institutions.
Changes in the Bank of Canada prime
rate influence changes in other interest rates, including variable
interest rate mortgages. This "bank rate" rate fluctuates
based on economic conditions.
Some mortgage companies offer interest
rates starting at Prime minus .1% (or more) as an incentive to borrow
from them! These are known as "SUB PRIME" Mortgages
and we know what happened in the US when too many sub-prime mortgages
were given out in the mid 2000's One of the dangers
with sub-prime mortgages is when they come due too early in the mortgage
term and rates have increased, it's difficult to make the change to
much larger payments. Read more about Sub-Prime
Mortgages
Average price for last month was $519,897 (it
was $510,580 the previous month) and
this represents almost a 2% increase compared to the same
month in 2012 - see
graph of prices here
Sales volumes were 7765 units, down about 17% from 9385 in March
2012
The Bank of Canada Prime Lending
Rate continues to be set at 3.00% read
more
As can be seen from the chart above, prices
are still strong. Number
of sales are down, but this could be due to reduced inventory.
See the
full report from TREB below.
There continues to be "pent up" demand and with such
low inventories, anything that comes on the market that shows well
and is priced well get's sold very quick.
We expect the spring to continue have tight supply
and prices should be up or about stable until end of the next quarter,
stay tuned for all the results right here!
I hope this finds you healthy and happy!
All the best,
Mark
You are reading the
latest newsletter
April News Report
Last months Resale Housing Results Show Healthy Market!
This is the latest monthly report for TREB for the average prices and the number of sales in previous month, both were very strong last month.
Average Price up in March and First Quarter for April 2013
TORONTO, April 3, 2013
Greater Toronto Area REALTORS® reported 7,765 transactions
through the TorontoMLS system in March 2013 – down 17 per cent compared to 9,385
transactions in March 2012.
While the year-over-year dip in March sales followed the
trend that has unfolded since mid-way through 2012, it is also important
to note that the Good Friday holiday was in March this year versus
April in 2012.
Generally speaking, there are fewer sales reported
on statutory holidays and weekends. In the first quarter of 2013,
sales amounted to 17,678 – down by 14 per cent compared to
Q1 2012.
"Home ownership remains affordable for a household earning the average income in the
Greater Toronto Area. There are many willing buyers in the marketplace today.
While
some households have put their decision to purchase on hold as a
result of stricter lending guidelines or the additional Land Transfer
Tax in the City of Toronto, other households simply haven’t been able to find the right house due to a shortage of listings in some
market segments," said Toronto Real Estate Board President Ann Hannah.
The average selling price in March was $519,879 – up by 3.8 per cent compared to March
2012.
The average price in Q1 2013 was $508,066 – up by 3.2 per cent compared to the
first quarter of 2012.
"The average selling price and the MLS® Home Price Index Composite Benchmark was up
on a year-over-year basis across most home types, especially in the low-rise market
segments where supply remains an issue.
TREB's average price forecast for 2013 remains
at $515,000, representing a 3.5 per cent annual rate of growth," said Jason Mercer, TREB's
Senior Manager of Market Analysis.
Read more reports on the Greater Toronto Resale Housing Market
Variable rates are now about Prime or just a little less at Prime
MINUS about .1% to .2% or so, read
more
Mortgage interest rates have dropped slightly over the past month
or so, due to the bank rate increase. Bank of Canada is predicting
rates will not increase again for some time, maybe mid 2013, read
more
Any way you look at it, interest rates are at or near all time lows
with bank prime at 3.00% , read more.
Our market continues to perform very well, prices are up and sales
volumes are good. There are a good number of homes currently
for sale in Mississauga, we need good homes to sell!
It will be interesting to see what the next few months bring as
there seems to be a large amount of demand
for properties in Mississauga and the GTA.
I predict that it will be a very strong market with more properties
coming on the market in the next month or two giving a slightly larger
selection to buyers.
Average prices will likely increase 2-5% over the next 2 months. Volume
of sales will also increase every month in the next quarter, if you
are thinking of buying now is the time to do it!.
Given our very fine weather this winter that is expected to continue
for the next while, my observations for the Mississauga
marketplace is that we continue to see that prices continue to be
strong and increase quite substantially in many areas over the next
few months.
You may wish to read about the Power of Sale section at my website that will show you the pitfalls to avoid and the clauses to put into your offer when you buy a Power of Sale property in Ontario. This new section will also explain Power of Sale and Foreclosure in detail. Read more here.
Last month was another strong month for sales. Prices and sales volumes were high, read more
I have a few calendars left in hand. If
you would like to receive one of my calendars, please
fill in your information at this form and I
would be happy to send you a calendar once they
arrive!
I found this very interesting mortgage rate website on the internet where they survey mortgage experts to gauge the state of mortgage rates over the next 30 to 45 days: Will rates rise, fall or remain relatively unchanged?
You may read about Sold Stats for W16, W19 and W20. If you want the stats for your area, just email me and I will send them to you.
Listing inventories are low, so if you are thinking of selling, this is a good time to list your home. The market has been 'very good' for the past month or so and new listings are need. Would you like a Complimentary & Quick Over-The-Net Home Evaluation of your property?
It appears as if rates may hold steady for the short term. Many feel The Bank of Canada may hold the course in the near future on their current level of 4.75% prime, (Current Bank prime is shown here), so this should keep mortgage interest rates at their current levels.
Average single family residential prices were
UP compared to the previous month. This
is typical for this time of year. Price
trends over the past 18 years indicate that
prices will likely increase over the next month
or so.
Last month was another very solid month to add to another banner year in real estate in the GTA. See graphs of the sales figures, read more
My blog is moving along, a little over 1,000 posts to date. I enjoy posting to it and keeping you current on the real estate market. I will update the blog throughout each month to keep you current with the real estate market. This newsletter will continue to be published monthly. Read my Mississauga Real Estate Blog
How will this newsletter benefit you?
You will receive timely updates and valuable information regarding the Mississauga,
Toronto and GTA Real Estate market.
P.Eng. Broker (since 1987)
Your email address is never shared outside of Mississauga Real Estate Market Watch or Mississauga4Sale.com. You may read about my Privacy Policy You may unsubscribe
at any time.