It's been a hot spring market as evidenced by a two percent increase in activity from May 2008!
I believe this has been a result of pent up buyers who have been holding off until the market softens but have other reasons motivating a purchase other than just price. It's also a result of incredibly cheap money.
Check out the full report and commentary from the Toronto Real Estate Board below..
GTA May Resale Housing Sales Higher Than Last Year
TORONTO - June 2, 2009
In May 2009, Greater Toronto REALTORS® reported 9,589 sales, up almost two percent from May 2008 – the first annual increase since December 2007.
The seasonally adjusted annual rate of sales in May was 81,300. “The resale housing market in the GTA has remained resilient in the face of challenging times globally,” according to TREB President Maureen O’Neill.
“Many home buyers have taken advantage of extremely low mortgage rates.”
The average price for May transactions was $395,609 – down less than one per cent compared to the same month last year.
“The average resale home price has moved in line with last year’s level because of tighter market conditions experienced this Spring,” stated Jason Mercer, TREB’s Senior Manager of Market Analysis.
“Home sales have increased strongly relative to new listings, bolstering home prices.” Seasonally adjusting TREB MLS® data removes recurring seasonal trends observed each year.
For example, MLS® sales are highest in late spring each year and lowest in the winter months. Removing the recurring seasonality, allows for the analysis of a meaningful trend reflecting actual changes in market conditions.
By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how the current month relates to historical annual figures.
Click here for the full Toronto Real Estate Board Market Watch.
Mortgages
Rates have inched up...but still great historically speaking according to Peter from Mortage Architects...
"It appears commodity prices are rising, as well as the Canadian dollar. Now we can expect a slow and gradual rise in mortgage rates to more normal levels .... keeping in mind that all these rates are historically amazing!
A quarter percent here or there on your mortgage should not influence you to not buy or refinance now ... 2009-10 is likely the best time to make your "Mortgage Move" considering the odds are very very low we'll have these kind of borrowing rates in our life time again.
Be sure your "Mortgage Plan" is reviewed now regardless of your situation to ensure there's no regrets at renewal time. We are here to help you and your friends with that assessment, where Banks are not."
The sooner the better - Peter & Team
Check out current Posted Rates and his Best Rates....
Posted Rates*
6 mth - 4.75%
1 Year - 3.9%
2 Year - 4.05%
3 Year - 4.15%
4 Year - 4.84%
5 Year - 5.45%
7 Year - 6.30%
10 Year - 6.80%
Best Rates*
6 Mth - 4.25%
1 Year - 3.29%
2 Year - 3.5%
3 Year - 3.15%
4 Year - 3.69%
5 Year - 3.75%
7 Year - 5.10%
10 Year - 5.19%
Variable Rate 2.65%
Prime Rate 2.25%
*Interest Rates are provided for information purposes only and are subject to change at any time without notice. The products listed above are available only in Canada to Canadian residents. Rates shown are for single family residential properties only and are subject to meeting all lenders credit granting criteria. Rates shown above may be specific to the sender and some conditions may apply. E&OE.
