Magda Mo's Marketviews Newsletter for Toronto Real Estate: April 2013

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Magda Mo's Marketviews Newsletter for Toronto Real Estate: April 2013

  1. 1. The average selling price for a home in the GTA has risen two per cent comparedto this time last year, but sales continue to lag behind last year.The Toronto RealEstate Board (TREB) says changes to mortgage rules have had a big impact atboth ends of the market.For first-time buyers, tougher mortgage qualification rules have kept some buyers onthe 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-backedmortgages. 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 GTAas 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 inprice growth for some marketsegments in 2013,” says TREB’ssenior market analyst JasonMercer.The number of new listings onthe market has declined by morethan 12 per cent compared to lastyear. Homes now take anaverage of 28 days on the marketbefore they sell, compared to 24days a year ago.$520$490$460$430$340Units Sold7,291 6,058 6,809 5,759Resale Home Sales - Februaryin the Greater Toronto AreaSource:TREB$400$3702009201020112012AveragePrice(in000s)real estatereal estatecontinued....Page 2April 2013Prices keep risingLuxury market slowsYour Greater Toronto Real Estate NewsletterUPDATEMAGDA MOsales representative
  2. 2. Moving up to a larger house or switching from a condoto a detached home is exciting, but it also requiresserious financial planning.Before you start house hunting, it is best to visit your lender andget a pre-approved mortgage so you will know exactly what you canafford. Most peo-ple return to thesame lender for anew mortgagewhen they renewor to buy a move-up home, but itmay be worth-while to shoparound. There area lot of banks,mortgage brokersand other financialMove-up mortgagesWhat you need to knowFebruary 2013Central ...........992 $673,149East.............1,398 396,636North...........1,200 563,775West............2,169 480,239January 2013Central ...........706 606,299East................969 375,643North..............933 558,459West............1,767 451,894December 2012Central ...........650 582,861East................846 368,854North..............750 570,650West............1,444 448,510November 2012Central ........1,003 612,603East.............1,407 378,502North...........1,144 547,825West............2,239 463,511October 2012Central ........1,214 634,288East.............1,642 385,549North...........1,362 568,952West............2,678 483,189September 2012Central ........1,012 658,196East.............1,453 386,097North...........1,180 578,792West............2,234 470,440Source: TREBand average priceby areaMonthly salesThe latest forecast from Canada Mortgage and Housing Corp.(CMHC) says that sales will “ramp up” toward the end of 2013 andinto 2014. First-time home buyers will return to the market due toimproving employment and affordability, says the federal housingagency.Watch for great mortgage deals this spring from financialinstitutions that are keen to get your business.Prices keep risingCont from front pageFeb ‘12 6,809 12,592Feb ’13 5,759 11,052Change - 15.4% - 12.2%Housing marketindicatorsSingle-family dwellingsNewListingsSource: TREB Sales
  3. 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. Ifyou decide to discharge that mortgage or want to re-negotiate it,youmay find there are penalties for breaking the mortgage agreement –and these costs can be hefty. There may also be administration andlegal fees to discharge the old mortgage. Take a close look at yourmortgage terms to find out if you will be on the hook for charges.Some mortgage lenders allow you to “port” the existingmortgage to another property, and some let you blend and extendthe mortgage to cover your new home. Again, you will need to dosome homework to determine if this option has the terms andinterest rate that gives you the best deal.It never hurts to shop aroundin this competitive market.Most people sell their current home before buying their move-uphouse so they are not financially tied to two properties, butdepending 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 RatesAt March 13, 20136-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%MortgagesGTA ’13totalsSales activityof single-familyhomesMost recent month,year to dateActive listingsFeb.....................15,969YTD........................N/ANew listingsFeb.....................11,052YTD....................21,638SalesFeb ......................5,759YTD....................10,039Average priceFeb .................$510,580YTD ................$498,536Median priceFeb .................$428,000YTD ................$421,000Source: TREB
  4. 4. Not intended to solicit buyers or sellers currently under contract with a brokerage.The information and opinions contained in this newsletter are obtained from various sources believed to be reliable.The Publisher assumes no responsibility for errors or omissions or for damages resulting from using the published information and opinions. Whole or partial reproduction is forbidden withoutwritten permission from the publisher. © Clear Communications 416-422-5754Referrals are an important part of mybusiness. Anyone you refer will receive special attentionand the finest service possible. For professional real estateadvice please call, any time.Thank you!MAGDA MOsales representativeKeeping youinformedOff: 416.483.8000Dir: 416.526.8732sales@magdamo.comwww.magdamo.comSageRealEstateLtd.,Brokerage1820 Bayview AvenueToronto, ON M4G 4G7

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