Good morning everyone;
The home is decorated, the Christmas tree is up and the outdoor lights are on. Phew…!
The madness continues throughout the month although the focus for most is not home selling or buying. A seasonal slowdown is occurring and hopefully a mild winter will ensue. Despite the slowdown, November was active and overall supply of homes has gotten even tighter.
Freehold home ownership still has an overwhelming demand over supply. Prices for November 2014 are up almost $40,000 from the same time period last year. Supply is even tighter!
The condo market has seen a record number of new developments come on market but the supply is being absorbed very well. In fact, pricing continues to increase as well and overall the condo market is growing and stable. Pricing for all segments are forecasted to increase.
TORONTO REALTORS® RELEASE NOVEMBER HOUSING MARKET FIGURES (See Full Report)
TORONTO, December 4, 2014 – Toronto Real Estate Board President Paul Etherington announced that Greater Toronto REALTORS® reported 6,519 residential transactions through the TorontoMLS system in November 2014. This result was up by 2.6 per cent compared to 6,354 sales reported in November 2013.
Through the first 11 months of 2014, total sales amounted to 88,462 – up 6.6 per cent compared to the same period in 2013. While the trend of year-over-year sales growth continued, the supply of listings remained constrained, with active listings at the end of November down in comparison to last year. “Even with a constrained supply of homes for sale in many parts of the Greater Toronto Area, buyers continued to get deals done last month.
Households remain upbeat about home ownership because monthly mortgage payments remain affordable relative to accepted lending standards. This is coupled with the fact that housing has proven to be a quality long-term investment,” stated Mr. Etherington. The average selling price for November transactions was up by 7.4 per cent year-over-year to $577,936. The year to- date average price was up by 8.4 per cent to $567,198. The MLS(R) Home Price Index Composite Benchmark price for November was up by 7.7 per cent compared to a year earlier.
“The robust average price growth experienced throughout 2014 has been fundamentally sound, with demand high relative to supply. Strong competition between buyers has exerted upward pressure on selling prices. Barring a substantial shift in the relationship between sales and listings in the GTA, price grow.
The Federal Government has decided to leave the overnight interest rate unchanged at 1%. Signs that the economy is moving well was not enough to incent a rate increase. Although inflation is still a concern, rates are not expected to rise until mid-end of next year. Mortgage rates do not necessarily follow the same path up or down.
House Hold Debt
Equifax Canada has released a report that the average Canadian household has just under $21,000 of debt. This figure DOES NOT include mortgages. The amount is higher than reported last year. Overall confidence in the economy may be translating to more spending by consumers.
Have a fantastic weekend and a great week!
Image courtesy of Flickr.