T he average selling price for a home in the GTA has risen two per cent compared to this time last year, but sales continue to lag behind last year.The Toronto Real Estate Board (TREB) says changes to mortgage rules have had a big impact at both ends of the market. For first-time buyers, tougher mortgage qualification rules have kept some buyers on the sidelines while they save a larger down payment. At the top end of the market, homes priced at more than $1 million no longer qualify for government-backed mortgages. In February, fewer high-end homes sold compared to same time last year, which “contributed to a more modest pace of overall average price growth for the GTA as a whole,” says TREB. The average detached home sells for about $647,000, with the average semi- detached home at about $484,335. “We will undoubtedly experience some volatility in price growth for some market segments in 2013,” says TREB’s senior market analyst Jason Mercer. The number of new listings on the market has declined by more than 12 per cent compared to last year. Homes now take an average of 28 days on the market before they sell, compared to 24 days a year ago. $520 $490 $460 $430 $340 Units Sold 7,291 6,058 6,809 5,759 Resale Home Sales - February in the Greater Toronto Area Source: TREB $400 $370 2009 2010 2011 2012 Average Price (in '000s) real estate real estate continued....Page 2 April 2013 Prices keep rising Luxury market slows Your Greater Toronto Real Estate Newsletter UPDATE MAGDA MO sales representative
Transcript
The average selling price for a home in the GTA has risen two per cent comparedto this time last year, but sales continue to lag behind last year. The Toronto RealEstate Board (TREB) says changes to mortgage rules have had a big impact at
both ends of the market.For first-time buyers, tougher mortgage qualification rules have kept some buyers on
the sidelines while they save a larger down payment. At the top end of the market,homes priced at more than $1 million no longer qualify for government-backedmortgages. In February, fewer high-end homes sold compared to same time last year,which “contributed to a more modest pace of overall average price growth for the GTAas a whole,” says TREB.
The average detached home sells for about $647,000, with the average semi-detached home at about $484,335. “We will undoubtedly experience some volatility in
price growth for some marketsegments in 2013,” says TREB’ssenior market analyst JasonMercer.
The number of new listings onthe market has declined by morethan 12 per cent compared to lastyear. Homes now take anaverage of 28 days on the marketbefore they sell, compared to 24days a year ago.
$520
$490
$460
$430
$340
Units Sold
7,291 6,058 6,809 5,759
Resale Home Sales - Februaryin the Greater Toronto Area
Source: TREB
$400
$370
20092010
20112012
Average
Price(in
'000s)
real estatereal estate
continued....Page 2
April 2013
Prices keep risingLuxury market slows
Your Greater Toronto Real Estate Newsletter
UPDATE
MAGDA MOsales representative
Moving up to a larger house or switching from a condoto a detached home is exciting, but it also requiresserious financial planning.
Before you start house hunting, it is best to visit your lender andget a pre-approved mortgage so you will know exactly what you can
afford. Most peo-ple return to thesame lender for anew mortgagewhen they renewor to buy a move-up home, but itmay be worth-while to shoparound. There area lot of banks,mortgage brokersand other financial
Move-up mortgagesWhat you need to know
February 2013Central ...........992 $673,149East .............1,398 396,636North...........1,200 563,775West ............2,169 480,239
January 2013Central ...........706 606,299East ................969 375,643North..............933 558,459West ............1,767 451,894
December 2012Central ...........650 582,861East ................846 368,854North..............750 570,650West ............1,444 448,510
November 2012Central ........1,003 612,603East .............1,407 378,502North...........1,144 547,825West ............2,239 463,511
October 2012Central ........1,214 634,288East .............1,642 385,549North...........1,362 568,952West ............2,678 483,189
September 2012Central ........1,012 658,196East .............1,453 386,097North...........1,180 578,792West ............2,234 470,440Source: TREB
and average priceby area
Monthly sales
The latest forecast from Canada Mortgage and Housing Corp.(CMHC) says that sales will “ramp up” toward the end of 2013 andinto 2014. First-time home buyers will return to the market due toimproving employment and affordability, says the federal housingagency.
Watch for great mortgage deals this spring from financialinstitutions that are keen to get your business.
institutions that would love to talk to you about your mortgage.The first step is to look at the terms of your existing mortgage. If
you decide to discharge that mortgage or want to re-negotiate it, youmay find there are penalties for breaking the mortgage agreement –and these costs can be hefty. There may also be administration andlegal fees to discharge the old mortgage. Take a close look at yourmortgage terms to find out if you will be on the hook for charges.
Some mortgage lenders allow you to “port” the existingmortgage to another property, and some let you blend and extendthe mortgage to cover your new home. Again, you will need to dosome homework to determine if this option has the terms andinterest rate that gives you the best deal. It never hurts to shop around
in this competitive market.Most people sell their current home before buying their move-up
house so they are not financially tied to two properties, butdepending on your circumstances you may require “bridge financing”before the deal on your current home closes.
Take your time, study your options and have a great move!
2013 RatesAt March 13, 2013
6-month . . . . . . . .4.00%
1-year . . . . . . . . .3.00%
2-year . . . . . . . . .3.00%
3-year . . . . . . . . . 2.79%
4-year . . . . . . . . .2.99%
5-year . . . . . . . . .3.08%
Prime rate . . . . . . .3.00%
Mortgages
GTA ’13totals
Sales activityof single-family
homesMost recent month,
year to date
Active listingsFeb.....................15,969YTD........................N/A
New listingsFeb.....................11,052YTD....................21,638
