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of GTA price trends.
Average price for last month was $510,580 (it
was $482,648 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 5759 units, down about 10% from 6809 in February
2012
The Bank of Canada Prime Lending
Rate continues to be set at 3.00% read
more
Mortgage Interest Rates are on the rise, read more
Last month was another very strong
month for sales and prices in the GTA.
TREB reports that the volume of sales was down
but prices are up year over year. In fact prices are down from
the previous month about 4% and this is a trend we have seen recently.
2013 Average Monthly Price
February
510,580
January
482,648
2012 Average Monthly Price
December
478,739
November
485,544
October
502,274
September
501,704
August
477,533
It could be the time of year or a trend, nobody can know for sure. We
will need to wait a few more months to determine if it's a longer term
trend.
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
March 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.
GTA REALTORS®GTA REALTORS® TORONTO, March 5, 2013
Price Growth Continues in February
TORONTO, March 5, 2013 –Greater
Toronto Area (GTA) REALTORS® reported 5,759 sales through the
TorontoMLS system in February 2013 – a decline of 15 per
cent in comparison to February 2012. It should be noted that 2012
was a leap year with one extra day in February. A 28 day year-over-year
sales comparison resulted in a lesser decline of 10.5 per cent.
The average selling price for February 2013 was
$510,580 – up two per cent in comparison to February 2012.
"The share of sales and dollar volume accounted
for by luxury detached homes in the City of Toronto was lower this
February compared to last. This contributed to a more modest pace
of overall average price growth for the GTA as a whole," said Toronto
Real Estate Board (TREB) President Ann Hannah.
"Stricter mortgage lending guidelines that precluded
government backed mortgages on homes sold for over one million
dollars and the City of Toronto’s additional upfront land
transfer tax arguably played a role in the slower pace of luxury
detached home sales," added Ms. Hannah.
The MLS® HPI Composite Benchmark price covering
all major home types eliminates fluctuations in price growth due
to changes in sales mix. The Composite Benchmark price was up by
more than three per cent on a year-over-year basis in February.
"We will undoubtedly experience some volatility
in price growth for some market segments in 2013. However, months
of inventory in the low-rise market segment will remain low, resulting
in average price growth above three per cent for the TREB market
area this year. Our current average price forecast is $515,000
for all home types combined in 2013," 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
NOTE: You can often negotiate a discount of 0.3 - .5%
or more off posted rates. "Best" Mortgage
Rates
BANK PRIME RATE
As of
June 5, 2019
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
P.Eng. Broker (since 1987)
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