Good morning everyone;
Back to School! Got the kiddies off to a brand new school year and settling into a fall rhythm after a busier than usual summer.
Another strong sales month for the GTA Real Estate Market. Both strong volume and sales pricing. Read the full Report.
The Feds left the Prime Interest Rate unchanged this week at 1%. It has been at this level for 3 years now. They signalled that no real movement will be occurring for at least year, sighting Canada’s and global economic performances as the main reason.
Although fixed mortgage rates have risen slightly over the last few weeks, the real estate market is poised to stay strong. These rates are based more on other economic levers such as bond rates.
Fixed mortgage rates are still available as low 3%. Very inexpensive! In fact, we may see a spike this 4th quarter in sales and pricing of homes as buyers who have been pre-approved at lower rates would want to take advantage before their pre-approval period expires.
Condos are also performing well with an average price increase of 3.7% for the GTA combined (2.3% – 416 / 7.1% – 905)
Supply of quality homes is still low and bidding wars are common. More than 70% of new listings coming to market in the 416 area are being advertised with scheduled offer dates.
GTA REALTORS® REPORT MONTHLY RESALE HOUSING MARKET FIGURES
TORONTO, September 5, 2013 – Greater Toronto Area REALTORS® reported 7,569 residential transactions through the TorontoMLS system in August 2013. This represented a 21 per cent increase compared to 6,249 sales in August 2012.
“Sales were up strongly this past August for all major home types compared to last year. Many households have accounted for the added costs brought on by stricter mortgage lending guidelines and have reactivated their search for a home. These households have found that a diversity of affordable ownership options exist throughout the GTA,” said Toronto Real Estate Board President Dianne Usher.
The average selling price for August 2013 was $503,094 – up by almost 5.5 per cent compared to the average of $477,170 in August 2012. The MLS® Home Price Index (HPI) composite benchmark was up by 3.7 per cent over the same period.
“Despite an increase in borrowing costs during the spring and summer, an average priced home in the GTA has remained affordable for a household earning an average income. With this in mind, tight market conditions are expected to promote continued price growth through the remainder of 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis
Average Selling Price of a DETACHED home in Toronto 416 is now $783,708
GTA Commercial REALTORS® Report Commercial Market Figures
TORONTO, September 5, 2013 – Toronto Real Estate Board Commercial Division Members reported almost 488,000 square feet of leased space through the TorontoMLS system in August 2013. This result represented a substantial increase over the 247,382 square feet of space leased during the same period in 2012. The industrial segment accounted for 77 per cent of the total space leased.
Year-over-year growth in average lease rates, for transactions undertaken on a per square foot net basis for which pricing was disclosed, was mixed. The average industrial lease rate was $5.16 in August 2013 – down from $5.88 in August 2012. Average lease rates for the commercial/retail and office market segments were up on a year-over-year basis.
“Over the last two months we have seen strong year-over-year growth in the amount of space leased through the TorontoMLS system. This growth has been driven by the industrial sector and suggests a strong result for the third quarter. The improvement in leasing activity seems to follow the view that overall economic growth in Canada is expected to improve in the second half of 2013 and even more so in 2014,” said Commercial Division Chair Cynthia Lai.
Combined sales of industrial, commercial/retail and office properties amounted to 48 in August 2013 – down from 65 transactions reported during the same period in 2012. Broken down by market segment, the number of commercial/retail transactions was the same as reported in 2012, whereas the number of industrial and office transactions was down.
Average selling prices, on a per square foot basis for transactions where pricing was disclosed, were up for industrial and commercial/retail transactions and down for office transactions. Year-over-year changes in average selling prices were strongly influenced by changes in the mix of properties sold this year versus last.
“The mix of industrial, commercial/retail and office transactions can change from one year to the next, on the basis of type, use and geography. These changes can result in fluctuations in the average selling price, especially when considering transactions on a monthly basis,” said Ms. Lai.
Have a fantastic weekend,