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
June 1, 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
November 2014 News
Greetings from Fabulous Mississauga!
The
Average price for last month was $587,505 (it was $573,676
the previous month) and this represents aver a 8.9% increase compared
tothe same month last year- seegraph
of prices here
Sales volumes were 8,552 UP 7.7% from thesame month last year
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
Once again, last month was another very strong month for salesand prices in the GTA.
TREB reports that the volume of sales was down but prices are up year over year.
2014 Average Monthly Price
October
587,505
September
573,676
August
546,303
July
550,700
June
568,953
May
585,204
April
577,898
March
557,684
February
553,193
January
526,528
2013 Average Monthly Price
December
523,096
November
538,881
October
539,415
September
533,232
August
501,794
July
513,246
June
530,636
May
542,174
April
526,335
March
519,879
February
510,580
January
482,648
The average selling price for 2013 as a whole was
$523,036, which represented an increase of 5.2 per
cent compared to the calendar year 2012 average of $497,130
- see
graph of prices here
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
November 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.
October 2014 Sales & Average Price Up Year-Over-Year
TORONTO, November 5, 2014 – Toronto Real Estate Board President Paul
Etherington announced that Greater Toronto Area REALTORS® reported 8,552
sales through the TorontoMLS system in October 2014. This result represented
an increase of 7.7 per cent compared to October 2013. New listings were also
up on a year-over-year basis, but by a lesser 3.4 per cent.
“Strong growth in sales was evident across all major home types during
the first full month of fall. This suggests that there are a lot of households
across the Greater Toronto Area who remain upbeat about the benefits of home
ownership over the long term, whether we’re talking about first-time
buyers or existing home owners looking to change their housing situation,” said
Mr. Etherington.
The average selling price for October 2014 transactions was $587,505 – up
8.9 per cent compared to the average of $539,286 reported for October 2013.
The MLS® HPI composite benchmark price was up by 8.3 per cent over the
same period. Low-rise home types, including singles, semis and town houses,
continued to be the driver of year-over-year growth in the average price
and the MLS® HPI composite benchmark.
“While sales growth has tracked strongly so far this fall, many would-be
home buyers have continued to have difficulties finding a home due to the
constrained supply of listings in some parts of the Greater Toronto Area,
particularly where low-rise home types are concerned. The resulting sellers’ market
conditions are forecast to drive strong price growth through the remainder
of 2014 and indeed into 2015 as well,” said Jason Mercer, TREB’s
Director of Market Analysis.
Where are mortgage rates heading?
A
common question I frequently get is "where are mortgage rates heading?" While
all we can do is speculate and anything can happen, we can always make
predictions based on what tools we have available to us today.
For shorter term predictions, we can follow the bond yield charts, which you
can find here: http://www.investing.com/rates-bonds/canada-5-year-bond-yield Fixed
mortgage rates are determined by bond yields. When the yields rise, upward
pressure is placed on fixed mortgage rates. When they drop, downward pressure
is placed. Last spring, we saw a large spike in bond yields within
a very short time span which sent fixed mortgage rates skyrocketing as much as
0.75% within a matter of a few short weeks...which is not something that anyone
could have predicted. They didn't start settling down until earlier this
year and have been slowly trending downwards ever since. If the downward
trend continues, we may very well see some lower rates soon, and I think this
is a definitely possibility.
For mortgage rate predictions a little further out, we need to look at economic
factors. One thing we know is the global economy is still in recovery mode
and most likely will be for the next several years. As long as this is
the case, fixed mortgage rates will continue to remain low.
The same applies to variable rate mortgages. While fixed mortgage rates
are dependent on bond yields, variable rate mortgages follow the prime rate set
by the Bank of Canada, which is determined by economic influences. Experts
are now predicting that the prime rate could remain unchanged for the next few
years. As it is, the prime rate has remained at 3% since September 2010
and is by far the longest streak where it has remained unchanged in history.
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!
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 3.00% 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 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
