Tight Market Results in Strong Price Growth

The power of Affirmations!

 

Our next Home Buyer Seminar is June 11. Register here.

TREBMarketWatch-April-2011 

Greater Toronto Realtors reported 9,041 sales through the MLS in April, 2011 . The number of transactions  represented a 17% decrease compared to the 10,898 record sales recorded in April, 2010.  While off last year’s record, April 2011 sales were in line with the average April sales level reported over the last five years.

 

” Existing home sales have been strong from a historic perspective through the first four months of 2011. Expect the pace of sales to remain robust through spring, as the economy expands and home buyers continue to benefit from affordable home ownership opportunities,” said Toronto Real Estate Board President Bill Johnston

The average home selling price for April transactions was $477,407- up 9.0% compared to the average of $437,600 reported in April, 2010. The average home selling price year-to-date is $457,876-up 6.9% compared to the average reported the same time last year. Year-to-date sales are down 15.4% compared with the same period last year.

” The number of listings has been below expectations so far this year. Increased competition between home buyers has led to an accelerating annual rate of price growth” said Jason Mercer TREB’s Senior Manager of Market Analysis. ” The strong price growth experienced in April should result in more listings and more balanced market conditions.”

Condominium apartments accounted for 22.4% of total sales in the the GTA while detached homes accounted for 49.0% of the total sales.

Other notable statistics include the average days on the market for April at 22 days compared to 21 days the same time last year. Active listings were 17,466 in April 2011-down 24% from the April,2010. The sales-to-listings ratio for April was 51.8% which is classified as a seller’s market . A ratio from 24%-28% is considered a balanced market.  

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.

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.

 Here are the preferred mortgage rates from one of my Mortgage Specialists as of May 20, 2011:

TERM

POSTED

OUR RATES

6 Month

4.45%

4.35%

1 Year

3.70%

2.75%

2 Year

4.05%

3.30%

3 Year

4.55%

3.40%

4 Year

5.19%

3.63%

5 Year

5.69%

3.86%

7 Year

6.49%

4.79%

10 Year

6.85%

4.99%

Variable Rate

2.20%

Prime Rate

3.00%

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

* Join me in a 2- hour tour of homes,  or a 2-hour tour of condos  . Each tour is specifically set up based on your search criteria.

The House or Condo Tour is a great way to figure out which neighbourhoods and home styles are right for you.

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

Some Interesting Real Estate Infobits

  My May/June real estate newsletter is hot off of the press.

Did you know…..

 * The ” savings” you might realize by rate shopping your mortgage are generally in the area of 0.05%, equivalent to about $3.00/month on $100k worth of mortgage. On a $400k mortgage that’s about $144/year. Many buyers go for the savings and give up working with a professional with the service, experience and insight to understand their needs and provide the best product to fit their finances . Choosing the wrong mortgage to save those $3.00 can cost you thousands of dollars .

 * A recent study conducted for BMO Bank says that 1 in 5 Canadians are interested in buying property in the United States. No wonder…housing prices have fallen as much as 30% in the last four years.

 * According to a report by Royal LePage using property assessment data , since the last provincial assessment in 2008 bungalows in areas such as Leaside, York Mills, Lawrence Park and Moore Park have increased in value anywhere from 22% to 41% over that 3-year period. Detached bungalows have been popular with builders who either renovate them or rebuild them into larger units.

 * Using the full amount of financing the bank preapproves you for can be financial suicide. The bank will preapprove you based on gross income. You live day to day based on your net income. A personal budget is a MUST as part of your home buying plan.

 * There is no cost for a Buyer under a Buyer Representation Agreement to use a Realtor to represent their best interests to purchase a home. The Seller pays the commission which is typically 5%. Remember, the listing agent is representing the Seller’s best interests not the Buyer’s.

 * It is crucial to have a plan in place before you can begin the buying process. Every goal requires a plan. Your Realtor should help you put together a systematic plan which will ultimately save you time , effort and money. Are you ready for your Buyer Planning Session ?

 * Our Market Experience Tours of homes and condos  are a terrific way to gain market knowledge. Sellers fear educated Buyers.

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