October Price Growth Reflects Healthy Housing Market Conditions

TREB MarketWatch Oct 2010Greater Toronto Realtors reported 6,681 sales through MLS in October,2010. This represented a 21% decrease compared to the 8,476 sales recorded in October 2009. Through the first 10 months of this year , sales amounted to 75,582- up 1% compared to the same time period in 2009.

” The annual change in sales and average selling prices has been quite uniform across the GTA and by property type as the market has balanced out from record levels of sales in the second half of 2009 and first few months of 2010, ” said TREB President Bill Johnston.

“The composition of GTA home sales does differ depending on location. Condominium apartments accounted for 42% of total sales in the City of Toronto and almost 60% of sales in TREB’s central districts,” Johnston continued. ” In regions surrounding the City of Toronto, in contrast, low rise home types accounted for almost 90% of transactions.”

The average price for October transactions was $443,729- up 5% compared to the average of $423,559 reported in October 2009. The average selling price for the first 9 months of the year was $430,802 compared to $429,553 in the first 9 months of 2009.

” The average selling price in the GTA has continued to grow relative to 2009 because home ownership has remained affordable,” said Jason Mercer TREB’s Senior Manager of Market Analysis. ” A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an averaged priced home.”

” The outlook for mortgage rates and income growth over the next year is favorable. The average home selling price could increase moderately next year and remain affordable for the average GTA household,” continued Mercer.

Other notable statistics include the average days on the market for October at 31 days compared to 26 days the same time last year. The sales-to-listings ratio for October is 36.5% which is still in seller’s market territory. A ratio from 24%-28% is considered a balanced market. Remember Sellers are looking for market value for their property . I prepare a comparative market analysis (CMA) for all of my clients prior to submitting an offer to determine the property’s market value range. Active listings were up by 24% from the same time last year.

Remember that real estate is very neighbourhood specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood or on one street does not indicate that all other neighbourhoods or streets are experiencing the same results. We are still seeing multiple offers in some areas for the best homes.

Lets meet for a NO OBLIGATION Buyer Planning Session.  FREE Knowledge is power in your planning  Click Here.

Please call me at 416-520-6746 or email me, David@TorontoRealEstate.ca

RRSP’s and Your Down Payment

If you are planning on moving into your first house or condo sometime in 2011, now is the perfect time to do some serious planning on how to best gather together the money you’ll need for your down payment and closing costs .

Have you heard of the Federal Governments Home Buyers Plan which helps first time buyers purchase a home?

Are you aware that you can use up to $25,000 of your rrsp money interest free for a down payment or your closing costs?

 Are you aware that you will receive a cheque in the mail or deposited directly into your bank account just by contributing to your rrsp?

Join us for a FREE Seminar on November 18, 7:00pm and November 27 , 1:30pm. The first seminar was a SELL-OUT!

Click here to register.

Please contact me at 416-520-6746 or email me, David@TorontoRealEstate.ca

Some Interesting Real Estate InfoBits

My November/December 2010 Real Estate Newsletter is hot off the press. Check it out.
 
Did you know…..
 
* Check out this new interactive mortgage calculator from the Financial Consumer Agency of Canada.
It helps you to determine whether or not you can qualify for a home mortgage based on your income and expenses.
 
* A condominium corporation has a duty under the Condominium Act to take all reasonable steps to ensure that owners and occupiers of units comply with the Act with respect to second hand cigarette smoke.
 
* Canadians make up a good portion of distressed housing in places such as Nevada and Arizona.
 
* If a buyer does default on closing day for whatever reason the seller can bring a lawsuit against the buyer. If a seller does default on closing day for whatever reason the buyer can bring a lawsuit against the seller.
 
*Carrying a mortgage in the USA is a benefit because the interest paid on a mortgage is tax deductible. Here, the culture is incented to maintain debt. We know where this has led many homeowners…..foreclosure!!
 
* The World Economic Forum repeatedly ranks Canadian banks as the soundest in the world. The proof was how well Canada survived the global economic crisis compared to the USA and the global economy overall. Only about 5.0% of loans in Canada can be attributed to sub-prime vs 22% of loans in the USA. When you take the population size into account there is a massive disparity.
 
* On August 31 the new statutory guideline for rent increase came into effect for properties under the Ontario Residential Tenancies Act. Landlords may now increase rents by up to .7% of the current rental rate charged to the tenant. Landlords can legally increase rent by more under certain conditions.
Check out  the Ontario Landlord and Tenant Boardwebsite. Know your rights if you are a tenant or a landlord.
 
Are you ready for your Buyer Planning Session. ?
 
Call me at 416-520-6746 or email me , David@TorontoRealEstate.ca