Good morning everyone;
The Bank of Canada has left interest rates unchanged at 1%. Recent lower than expected job numbers prompted the federal government to leave things be. Although the economy is still performing positively, it is at a slow enough pace that inflation is not yet a concern. Most analysts are forecasting interest rate increase in the 3rd quarter of next year.
This generally means low mortgage rates are remaining for the next little while.
GREATER TORONTO REALTORS® REPORT MID MONTH RESALE HOUSING MARKET FIGURES
TORONTO, July 16, 2014 – Toronto Real Estate Board President Paul Etherington announced that TorontoMLS home sales through the first 14 days of July 2014 were up by 11.6 per cent year-over-year to 3,891. New listings were also up compared to the same period in 2013, but by a lesser annual rate of 9.7 per cent. “There are two key takeaways from the July mid-month results. First, given the continuation of strong sales growth, it is clear that buyers are still attracted to affordable home ownership options in the GTA. Second, if new listings growth begins to outpace sales growth, we could start to see an improvement in the overall supply of homes for sale. This would be a relief for some buyers who have been hard pressed to find a home that meets their needs in this tight market,” said Mr. Etherington. The average selling price for sales reported during the first two weeks of July 2014 was $549,174. This result was up by eight per cent compared to the same period in 2013. The strongest rates of price growth were reported for semi-detached houses and townhouses in the City of Toronto.
“Annual average price growth remains in the high single-digits or low double-digits for many home types across the GTA. It is possible that we could see more choice for buyers in the second half of 2014 in the form of increased new listings. A sustained increase in choice for buyers could serve to gradually ease the pace of price growth in some market segments,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.
Summary of TorontoMLS Sales and Average Price July 1‐14, 2014
Strong Growth in June Sales
July 4, 2014 — Stepping into his role as President of the Toronto Real Estate Board, Paul Etherington announced a strong increase in residential sales reported through the TorontoMLS system in June. Sales were up by 15.4 per cent year-over-year to 10,180 transactions. New listings were also up compared to the same period in 2013, but by a lesser annual rate.
This means that competition between buyers increased in June. The average selling price for June transactions was $568,953, representing an increase of 7.4 per cent compared to June 2013
Canadian home sales, prices, rise in June from May (See Full June Market Watch Report)
Tue, 15 Jul 2014 10:31:15 GMT | By Reuters, Reuters – By Andrea Hopkins
TORONTO (Reuters) – Sales of existing homes in Canada rose in June from May, notching the fifth straight monthly increase after a slow winter and taking sales to their highest level since March 2010, the Canadian Real Estate Association said on Tuesday.
The industry group for Canadian real estate agents said sales activity was up 0.8 percent last month after May’s robust 6.1 percent rise, suggesting the sharp bounce back after a harsh winter may be losing steam. Canada’s housing market has roared back to life after an especially brutal winter hurt home building, sales and prices, but economists widely expect the market to slow again late in 2014 or in 2015 when interest rates begin to rise. “With listings effectively unchanged and national sales much more moderate in June, the housing market may be losing some momentum as we head into the summer months,” Mazen Issa, senior Canada macro strategist at TD Securities, said in a research note. “On an annual basis, we anticipate that sales will be nearly 4 percent higher relative to their 2013 level but we think that there is potential for a moderate unwind through 2015.” Actual sales for June, not seasonally adjusted, were up a whopping 11.2 percent from June 2013. The real estate association’s home price index rose 5.4 percent from June 2013, a slight acceleration from May’s 5.0 percent gain.
“In markets with tight supply and strong demand, the strength of sales in recent months reflects how many properties were snapped up once they finally hit the market (after the harsh winter),” association Chief Economist Gregory Klump said in the report. “Because the impact of deferred listings and sales has likely run its course, activity over the second half of the year may not be able to maintain the kind of pace we’ve seen over the past couple of months.” The national sales-to-new listings ratio was 53.6 percent in June, up slightly from 53.2 percent in May, as new listings edged lower. There were six months of inventory at the end of June 2014, unchanged from May but half a month below where it stood at the beginning of 2014, CREA said. The national average price for homes sold in June, not seasonally adjusted, was C$413,215 ($385,300), up 6.9 percent
from the same month last year. ($1 = 1.07 Canadian Dollars) (Reporting by Andrea Hopkins; Editing by Chizu Nomiyama and Jonathan Oatis)
Have a fantastic glorious weekend! Anthony