MarketsEven thought kids are out of school and people are in the mindset of summer vacation, the real estate market didn't get the message!
The GTA resale housing market just had the best June on record, Ontario saw a 15% increase in building permits, and interest rates continue to be a huge motivator.
Check out the full report and commentary from the Toronto Real Estate Board below as well as the full Market Watch report for prices and activity in your neighbourhood..
GTA Resale Housing Market Posts Best June on RecordTORONTO, July 6, 2009 - In June 2009, Greater Toronto REALTORS® reported a record10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700.1
"The record result in June is testament to the fundamentally sound housing market in the GTA," said the Toronto Real Estate Board’s newly appointed President Tom Lebour.
"An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market."
The average price for June transactions was $403,972 – up by two per cent compared to the same month last year.
"The re-emergence of seller’s market conditions has exerted upward pressure on home prices," explained Jason Mercer, TREB's Senior Manager of Market Analysis.
"Look for sales to remain high relative to listings in the second half of the year. This will keep home prices growing."
City of Toronto ("416") 2008 to 2009 Snapshot:2009 # of sales: 4,362
average price: $441,703
2008 # of sales: 3,481
average price: $433,082
Click here for the full Toronto Real Estate Board Market Watch.Mortgages 
From the desk of Peter Majthenyi and Andre Semeniuk:
With fixed mortgage rates being so low, why would I go variable?I have been listening to many borrowers struggle with the fixed vs. variable dilemma for quite some time.
The challenge is to keep in mind that most of us will have a mortgage for 15-20 years and not just for the next 5 years. It is important to not fixate on the current mortgage rate, but rather consider the long-term interest you will pay.
Choosing 5 year fixed or 5 year variable … we will likely pay a higher rate in the future regardless. Currently variable is about 1.5% less than a 5 year fixed term, so what's your rush to pay 1.5% more? This is a lesson in not paying any sooner than we have to!
A variable rate is about saving thousands of dollars in the first years of a mortgage, allowing our money to be better leveraged in the short run, for instance to increase savings or provide cash resources.
Our ambition is to keep our hands on our money as long as possible before we have to forfeit it to the lender. Ideally, the best strategy is to direct these funds to the mortgage principal immediately considering the first few years of a mortgage is primarily interest.
Variable rate mortgages are based on the Bank prime rate that is dictated by the Bank of Canada, which has committed to not changing it for at least another year.
Once our economy begins to show signs of sustained recovery we can expect this rate to increase, which is typically adjusted by .25% a couple of times a year.
The Bank of Canada only meets 8 times a year and is reluctant to change these rates upward frequently and, when they do anticipate changes, they are well publicized in advance and therefore are quite predictable.
If you are considering a traditional 5 year fixed term then you are most likely concerned about rates rising significantly in the future. If so, you should consider this; if 3 years from now rates start to skyrocket you will very disappointed that you are in a closed mortgage and cannot convert prior to renewal. Fixed mortgages require you to wait until maturity before considering new mortgage options and by then it's usually too late.
A variable mortgage allows you to convert to another mortgage at anytime with no penalty. This convertible safety net is what we all want so we avoid future disappointment, especially considering we are not paying our mortgage off anytime soon.
It is financially prudent to try to avoid being locked into any financial product because flexibility is your savior to paying less interest. I can tell you that anyone you know who currently has a mortgage problem is most likely in a fixed term.
Chances are, once you have a variable mortgage you will leave it variable until the day you pay your mortgage off and never consider a fixed mortgage again. However, if you are simply terrified of significant future rate hikes and feel current mortgage rates are very suitable for your budget and tolerance, than please consider a fixed term of 10 years or longer.
The Power of the "Mortgage and Line of Credit COMBO!"Those that have good equity, good income to mortgage ratios, and acceptable credit should consider nothing else than a "Mortgage & Line of Credit Combination". This product is the future of mortgages and attaining financial independence sooner.
Currently, only about 6 of 52 mortgage lenders carry this product line, but in the coming year or so they will all need it in order to stay competitive. There are no premiums or additional cost to set up or maintain a "Mortgage Plan" like this.
This mortgage package is an excellent vehicle to help pay your mortgage off much faster, while never having to approach a lender again for any future financing requests. Used correctly it is likely the most powerful weapon in your financial arsenal.
Briefly, as you pay your mortgage principal down the credit limit on your secured line grows and becomes available immediately. And currently, the interest rate is 3.25%. This mechanism allows borrowers to direct all their savings and income to paying the mortgage principal down while never leaving them short of cash, allowing their money to work far more efficiently.
This popular line of credit product is also paramount for those that want to engage in tax-efficient investing (The Smith Manoeuvre). To learn more, we should connect to explore if this is a program available to you, or someone you know.
Please introduce our material to anyone you may want to empower with the most current mortgage information that Banks often neglect to share with us.
To connect with Peter today, go to
http://www.mymortgageplanner.ca/
With city workers on strike, it can be frustrating not knowing
