Record Home Sales in September 2015


October 5, 2015 — Toronto Real Estate Board President Mark McLean announced that Greater Toronto Area REALTORS® reported a record number of transactions for the month of September through TREB’s MLS® System. There was a combined 8,200 home sales reported for September 2015. This result was up 2.5 per cent compared to September 2014.

TREB MLS® sales tmarket_watchhrough the first nine months of 2015 amounted to 80,331, which also represented a record result and a 9.5 per cent increase compared to the first three quarters of 2014.

“We are on track for record home sales reported through TREB’s MLS® System this year. Barring a drastic shift in the economy over the next three months, total transactions reported by TREB Members in 2015 are expected to be at or near the 100,000 mark. This is a testament to the importance that GTA households put on home ownership as a long-term investment,” said Mr. McLean.

The MLS® Home Price Index (HPI) Composite Benchmark Price was up by 10.5 per cent year over year. The average selling price for all home types combined was also up by 9.2 per cent annually to $627,395. Growth in the MLS® HPI Composite Benchmark and the average price was driven by the low-rise market segments, including detached and semidetached houses and townhouses.

“While September was the second straight month where annual growth in new listings outstripped annual growth sales, total active listings at the end of the month still remained below last year’s level. This, coupled with the record pace of sales experienced so far this year, suggests that competition between buyers will remain strong as we move into the fourth quarter. Expect strong rates of price growth to continue through the remainder of 2015 and into 2016,” said Jason Mercer, TREB’s Director of Market Analysis.

 

 

  • Source TREB
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***REAL ESTATE CURRENT MARKET REPORT- TORONTO & SURROUNDING AREAS***


***REAL ESTATE CURRENT MARKET REPORT- TORONTO & SURROUNDING AREAS***

March 5, 2014 — Toronto Real Estate Board President Dianne Usher announced that February 2014 home sales reported by Greater Toronto Area REALTORS® were up by 2.1 per cent compared to the same period last year. Total February sales amounted to 5,731 compared to 5,613 last year.

“Despite the continuation of inclement weather in February, we did see a moderate uptick in sales activity last month. The sales increase was largely driven by resale condominium apartments. New listings of resale condominium apartments were up on a year-over-year basis, giving buyers ample choice. This is in contrast to the listings situation for singles, semis and townhomes, where supply continued to be constrained. Some would-be buyers had difficulty finding a home that met their needs,” said Ms. Usher.

“If we see renewed growth in listings for low-rise home types, the pace of sales growth will accelerate as we move through the year,” Ms. Usher continued.

The average selling price for February 2014 sales was up by 8.6 per cent to $553,193, compared to the average of $509,396 reported for February 2013. The MLS® Home Price Index (HPI) Composite Benchmark was up by 7.3 per cent year-over-year.

“While the strong price growth experienced over the last year should prompt an improvement in the supply of listings, sellers’ market conditions will continue to prevail this year. Home prices, on average, will trend upwards at a pace well-above the rate of inflation. The impact of strong price growth on affordability will be mitigated by low borrowing costs,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

 

 

 

 – Source: TREB

CMHC raises mortgage Insurance premiums!!!


CMHC raises mortgage Insurance premiums!!!

Courtesy of CMHC and as written by Mr. Charles Sauriol, Media Relations at CMHC.

OTTAWA, February 28, 2014 — Following the annual review of its insurance products and capital requirements, CMHC will increase its mortgage loan insurance premiums for homeowner and 1 – 4 unit rental properties effective May 1, 2014.

The increase applies to mortgage loan insurance premiums for owner occupied, self-employed and 1-to-4 unit rental properties, including low-ratio refinance premiums. This does not apply to mortgages currently insured by CMHC.

CMHC’s capital management framework is consistent with international practices and Canadian guidelines for mortgage insurers. Increased capital targets are consistent with Canadian and international industry trends and makes the financial system more stable and resilient.

“The higher premiums reflect CMHC’s higher capital targets” said Steven Mennill, CMHC’s Vice-President, Insurance Operations. “CMHC’s capital holdings reduce Canadian taxpayers’ exposure to the housing market and contribute to the long term stability of the financial system.”

For the average Canadian homebuyer requiring CMHC insured financing, the higher premium will result in an increase of approximately $5 to their monthly mortgage payment. This is not expected to have a material impact on the housing market.

Effective May 1st, CMHC Purchase (owner occupied 1 – 4 unit) mortgage insurance premiums will increase by approximately 15%, on average, for all loan-to-value ranges.

Loan-to-Value Ratio Standard Premium (Current) Standard Premium (Effective May 1st, 2014)
Up to and including 65% 0.50% 0.60%
Up to and including 75% 0.65% 0.75%
Up to and including 80% 1.00% 1.25%
Up to and including 85% 1.75% 1.80%
Up to and including 90% 2.00% 2.40%
Up to and including 95% 2.75% 3.15%
90.01% to 95% – Non-Traditional Down Payment 2.90% 3.35%

CMHC reviews its premiums on an annual basis and, going forward, plans to announce decisions on premiums in the first quarter of each year. The homeowner premium increase follows changes CMHC made to its portfolio insurance product earlier this year.

95% Loan-to-Value
Loan Amount $150,000 $250,000 $350,000 $450,000
Current Premium $4,125 $6,875 $9,625 $12,375
New Premium $4,725 $7,875 $11,025 $14,175
Additional Premium $600 $1,000 $1,400 $1,800
Increase to Monthly Mortgage Payment $3.00 $4.98 $6.99 $8.98

Based on a 5 year term @ 3.49% and a 25 year amortization

*Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount.

85% Loan-to-Value
Loan Amount $150,000 $250,000 $350,000 $450,000
Current Premium $2,625 $4,375 $6,125 $7,875
New Premium $2,700 $4,500 $6,300 $8,100
Additional Premium $75 $125 $175 $225
Increase to Monthly Mortgage Payment $0.37 $0.62 $0.87 $1.12

Based on a 5 year term @ 3.49% and a 25 year amortization

*Premiums in Manitoba, Ontario and Quebec are subject to provincial sales tax — the sales tax cannot be added to the loan amount.

Exceptionally Healthy Housing Market in 2014 in Canada


Re/max Canada Says that, the ImageCanadian can expect an “exceptionally healthy” housing market nationally in 2014 thanks to improvements in the overall economy that helped produce a surge in the latter half of this year, a leading real estate group said Wednesday.

Home sales are expected to climb 2% to 475,000 units next year after a 3% increase to well over 453,000 projected for 2013 when all the numbers are in.
At the same time, the value of an average Canadian home is forecast to escalate 3% to $390,000 in 2014 after rising 4% to $380,000 in 2013, according to a survey of the group’s independent brokers and affiliates.

Meanwhile, the outlook is for the residential housing market to remain in “clear balanced territory” throughout 2014, although some pockets and price points may see continued shortages.
Re/Max says its optimism is largely based on an improved outlook for Canada next year which is expected to see the country enjoy economic growth second only to the 2.8 per cent rate of the United States among Group of Seven countries.
And it says that while Canada’s economic growth is currently forecast at 2.3 per cent , it could move higher given the impact of strengthening global economies on the Canadian manufacturing sector.

As a result, the momentum that emerged in the latter half of the year is expected to spill over into 2014, setting the stage for continued growth and expansion in most residential markets, Re/Max said.

Overall, 23 of 25 markets surveyed, or 92%, are set to experience average price increases by year-end 2013, with Hamilton-Burlington the leader at 7.5%, followed by Barrie, Ont. and District at 7%, Calgary and St. John’s, NL, at 6%, and Greater Vancouver, Winnipeg and the Greater Toronto Area at 5%.

The forecast for 2014 shows the upward trend continuing, with values expected to again climb in 92% of markets surveyed, led by Greater Toronto at six per cent.

Quebec and Atlantic Canada have been the exceptions to the rosy performance in 2013, with sales expected to fall below 2012 levels.
But even there things should improve next year, Re/Max said.
“Both regions should rebound in the new year, led by Halifax-Dartmouth (5%), Monocton (3%), Greater Montreal (2%) and Quebec City (2%).”

Although there are several factors that are expected to contribute to rising housing prices on a national basis, one of the most pressing is build out, Re/Max said, “Nowhere is that more obvious than in Vancouver, where the mountains and the ocean have prevented further growth, and the Greater Toronto Area, where the greenbelt has stymied future development.”

“As such, the availability of low-rise homes relative to the population is expected to contract, placing further pressure on prices,” it said. “We’re definitely seeing a greater commitment to higher density at a municipal level,” said Elton Ash, regional executive vice-president, RE/MAX of Western Canada.

“In fact, the trend already underway in Vancouver and Toronto, has gained serious momentum in smaller markets where cities are moving to infuse vibrancy into the urban core through mixed-use residential/commercial/retail development.”

 

#realestatemarket #canada #toronto #remax #miltonon

HOUSING MARKET WILL BE STRONGER IN 2014 – GTA AREA


 You must be wondering why I say so, when we are hearing from many economists that the GTA’s local real estate will crash this year and prices will fall down?

Here are the few facts I would like to bring here to support my predictions:

1. More Affordability – The average price of 1990’s vs today is almost twice in most of the GTA areas. Whereas the interest rates of 1990’s (around 12%) has decreased 4 times down to around 3% now a days. The average cost of living that time was same as it is today. Further, in those days a two bedroom condo could be rented at $ 1,100-1,200 vs today it is around $ 2,200. So economically speaking it makes more sense to buy vs. rent.

2. Single Percent Degree Price Increase – The housing prices increased by single digit percent increase in most of the GTA area for many years. Which is also not considered as big bursting bubble and is healthy in my opinion.

3. Consistent Immigrants Inflow – For almost a decade, the consistent immigrants inflows into Canada and especially in Toronto and surrounding areas makes it rising demand of homes by these settlers over the year. Low interest rates and almost similar cost of renting vs. owning makes more sense to own a house. Also, most people understands the value and benefits of owing a home.

4. Consistent Rent Increase – Rents are almost double now then they used to be in 1990’s, making it more sense to buying then renting.

5. Least Effect of Changes in Mortgage Rules – The effect of lowering the amortization period to 25 years if you were putting less than 20 per cent down and lowered the percentage of your income that could be used for borrowing from 44% to 39%. The result was that buyers who would have purchased in late summer or fall moved up their purchasing decision to the spring. By fall, this meant many would-be first-time buyers were looking to rent instead of buy. This contributed to low vacancy rates.

6. Good For Investors – Toronto condo and homes rental vacancy rates are less than 2%. Their is plenty of demand for housing or condos by renters and low borrowing cost and bringing higher return makes it more attractive for investors to invest in the housing market.

7. Interest Rates In The Future – They are expected to be same for little while from now as the U.S. Federal Reserve is now saying it won’t raise the rates until 2015. We can’t afford to be differ much from theirs without harming our economy with a strong dollar and slower growth.

8. Strong Canadian Automobiles & Servicing Industry – Resulting More jobs and better economy in the future.

9. Strong Prices in 2012, Up by Almost 7% – Even though the slight down in number of total sales for 2012 amounted to 85,731 – down from 89,096 transactions in 2011, But the average selling price in 2012 went up by almost 7% to $497,298, inspite of mortgage rules and negative predictions.

So cheers and look forward to have a place of your own called – “Your Own Home”!!!

And being an experienced full time Realtor, I shall be more then happy to help you in fulfilling your dream to have a little piece of your own on this earth. If you have any questions, then I can be reached at (416) 400-7785 or email me at babbarsanjay@hotmail.com.

 

 

Sales and Average Price Up in Calendar Year 2013


January 6, 2014 — Greater Toronto Area REALTORS® reported 4,078 residential transactions through the TorontoMLS system in December 2013 – up by almost 14 per cent compared to 3,582 sales reported in December 2012. New listings entered into the TorontoMLS system were down by almost four per cent over the same period.

Total sales for calendar year 2013, at 87,111, were up by approximately two per cent compared to 85,496 transactions in calendar year 2012.

“After a slow start to the year, sales growth accelerated to a brisk pace in the second half of 2013. Despite the inclement weather in December, we finished the year with a respectable gain in transactions compared to 2012. Looking forward, I believe that home ownership in the GTA will remain affordable as borrowing costs stay low. The result could be a further increase in sales in 2014,” said Toronto Real Estate Board President Dianne Usher.

“The average selling price will be up again in 2014 and by more than the rate of inflation. The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

The average selling price for December 2013 sales was $520,398 – up by 8.9 per cent compared to the average of $477,756 in December 2012.

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.

– Source:TREB #Torontorealestate #toronto #miltonON #mississauga #brampton #homebuyer #homeseller

***CURRENT MARKET REPORT -November 2013***


Tighter Market Conditions Drive Strong Price Growth!!!
————————————————————————

December 4, 2013 — Greater Toronto Area REALTORS® reported 6,391 residential sales through the TorontoMLS system in November, representing a 13.9 per cent increase over the sales result for November 2012. Over the same period, new listings on TorontoMLS were down by 4.4 per cent and month-end active listings were down by 12.1 per cent.

“Growth in sales was strong for most home types in the Greater Toronto Area. Sales growth was led by the single-detached market segment followed by condominium apartments. Together, singles and condos accounted for almost three-quarters of total GTA transactions,” said Toronto Real Estate Board President Dianne Usher.

“With National Housing Day having just passed, housing affordability is top of mind in the GTA and indeed nationally. Despite strong price growth and an uptick in borrowing costs this year, monthly mortgage payments on the average priced home remain affordable for a household earning the average GTA income,” continued Ms. Usher.

The average selling price for November 2013 TorontoMLS transactions was $538,881 – up by 11.3 per cent in comparison to the average of $484,208 reported for November 2012. The MLS® Home Price Index (HPI) Composite Benchmark was up by 5.7 per cent over the same period.

“Whether we consider the average TorontoMLS selling price or the MLS® HPI Composite Benchmark, annual home price growth remained well-above the rate of inflation in November. This makes sense given the fact that competition between buyers increased last month. Transactions were up strongly year-over-year while the number of homes available for sale was down,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

– Source: TREB

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