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
September 13, 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
How will this newsletter benefit you?
You will receive timely updates and valuable information regarding
the Mississauga, Toronto and GTA Real Estate market.
Average
price for last month was $542,174 (it
was $526,335 the previous month) and
this represents almost a 5.4% increase compared to the same
month in 2012 - see
graph of prices here
Sales volumes were 10,182 units, down about 3.4% from the same month in 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
June 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.
TORONTO,
June 2013 - Price Growth Across All Major Home Types in May
TORONTO, June 5, 2013 – Greater Toronto Area (GTA) REALTORS® reported
10,182 sales through the TorontoMLS system in May 2013, representing
a dip of 3.4 per cent compared to May 2012. Sales of single-detached
homes in the GTA were up by almost one per cent compared to the same
period last year, including a three per cent year over- year increase
in the City of Toronto.
“The sales picture in the GTA has improved markedly over the
past two months. While the number of transactions in April and May
remained below last year’s levels, the rate of decline has been
much smaller. A growing number of households who put their decision
to purchase on hold as a result of stricter lending guidelines are
starting to become active again in the ownership market,” said
Toronto Real Estate Board President Ann Hannah.
The average selling price for May 2013 sales was $542,174 – up
by 5.4 per cent in comparison to $514,567 in May 2012. The annual rate
of price growth was driven by the tight low-rise segment of the market
and particularly by single-detached and semidetached home transactions
in the City of Toronto. Average condominium apartment prices were also
up slightly in comparison to last year.
The MLS® Home Price Index (HPI) Composite Benchmark was up by
2.8 per cent year over- year.
“The annual rate of price growth in May was not surprising
given the competition that still exists between buyers, particularly
for low-rise home types such as single-detached and semi-detached houses.
We remain on track for a three-and-a-half per cent increase in the
average selling price for 2013 as a whole,” said Jason Mercer,
TREB’s Senior Manager of Market Analysis.
Greater Toronto REALTORS® are passionate about their work. They
are governed by a strict Code of Ethics and share a state-of-the-art
Multiple Listing Service. Over 36,000 TREB Members serve consumers
in the Greater Toronto Area. The Toronto Real Estate Board is Canada’s
largest real estate board.
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
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Mortgage Rate Watch and Comparison
