Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Magda Mo's Marketviews Newsletter for Toronto Real Estate: April 2013
1. T
he average selling price for a home in the GTA has risen two per cent compared
to this time last year, but sales continue to lag behind last year.The Toronto Real
Estate Board (TREB) says changes to mortgage rules have had a big impact at
both ends of the market.
For first-time buyers, tougher mortgage qualification rules have kept some buyers on
the sidelines while they save a larger down payment. At the top end of the market,
homes priced at more than $1 million no longer qualify for government-backed
mortgages. In February, fewer high-end homes sold compared to same time last year,
which “contributed to a more modest pace of overall average price growth for the GTA
as a whole,” says TREB.
The average detached home sells for about $647,000, with the average semi-
detached home at about $484,335.“We will undoubtedly experience some volatility in
price growth for some market
segments in 2013,” says TREB’s
senior market analyst Jason
Mercer.
The number of new listings on
the market has declined by more
than 12 per cent compared to last
year. Homes now take an
average of 28 days on the market
before they sell, compared to 24
days a year ago.
$520
$490
$460
$430
$340
Units Sold
7,291 6,058 6,809 5,759
Resale Home Sales - February
in the Greater Toronto Area
Source:TREB
$400
$370
2009
2010
2011
2012
AveragePrice(in'000s)
real estatereal estate
continued....Page 2
April 2013
Prices keep rising
Luxury market slows
Your Greater Toronto Real Estate Newsletter
UPDATE
MAGDA MO
sales representative
2. M
oving up to a larger house or switching from a condo
to a detached home is exciting, but it also requires
serious financial planning.
Before you start house hunting, it is best to visit your lender and
get a pre-approved mortgage so you will know exactly what you can
afford. Most peo-
ple return to the
same lender for a
new mortgage
when they renew
or to buy a move-
up home, but it
may be worth-
while to shop
around. There are
a lot of banks,
mortgage brokers
and other financial
Move-up mortgages
What you need to know
February 2013
Central ...........992 $673,149
East.............1,398 396,636
North...........1,200 563,775
West............2,169 480,239
January 2013
Central ...........706 606,299
East................969 375,643
North..............933 558,459
West............1,767 451,894
December 2012
Central ...........650 582,861
East................846 368,854
North..............750 570,650
West............1,444 448,510
November 2012
Central ........1,003 612,603
East.............1,407 378,502
North...........1,144 547,825
West............2,239 463,511
October 2012
Central ........1,214 634,288
East.............1,642 385,549
North...........1,362 568,952
West............2,678 483,189
September 2012
Central ........1,012 658,196
East.............1,453 386,097
North...........1,180 578,792
West............2,234 470,440
Source: TREB
and average price
by area
Monthly sales
The latest forecast from Canada Mortgage and Housing Corp.
(CMHC) says that sales will “ramp up” toward the end of 2013 and
into 2014. First-time home buyers will return to the market due to
improving employment and affordability, says the federal housing
agency.
Watch for great mortgage deals this spring from financial
institutions that are keen to get your business.
Prices keep rising
Con't from front page
Feb ‘12 6,809 12,592
Feb ’13 5,759 11,052
Change - 15.4% - 12.2%
Housing market
indicators
Single-family dwellings
New
ListingsSource: TREB Sales
3. institutions that would love to talk to you about your mortgage.
The first step is to look at the terms of your existing mortgage. If
you decide to discharge that mortgage or want to re-negotiate it,you
may find there are penalties for breaking the mortgage agreement –
and these costs can be hefty. There may also be administration and
legal fees to discharge the old mortgage. Take a close look at your
mortgage terms to find out if you will be on the hook for charges.
Some mortgage lenders allow you to “port” the existing
mortgage to another property, and some let you blend and extend
the mortgage to cover your new home. Again, you will need to do
some homework to determine if this option has the terms and
interest rate that gives you the best deal.It never hurts to shop around
in this competitive market.
Most people sell their current home before buying their move-up
house so they are not financially tied to two properties, but
depending on your circumstances you may require“bridge financing”
before the deal on your current home closes.
Take your time, study your options and have a great move!
2013 Rates
At March 13, 2013
6-month . . . . . . . .4.00%
1-year . . . . . . . . .3.00%
2-year . . . . . . . . .3.00%
3-year . . . . . . . . . 2.79%
4-year . . . . . . . . .2.99%
5-year . . . . . . . . .3.08%
Prime rate .......3.00%
Mortgages
GTA ’13
totals
Sales activity
of single-family
homes
Most recent month,
year to date
Active listings
Feb.....................15,969
YTD........................N/A
New listings
Feb.....................11,052
YTD....................21,638
Sales
Feb ......................5,759
YTD....................10,039
Average price
Feb .................$510,580
YTD ................$498,536
Median price
Feb .................$428,000
YTD ................$421,000
Source: TREB
