Greater Toronto Area sales in August represented a 13.4 per cent increase in unit sales compared to 6,797 sales reported in August 2018. GTA-wide sales were up on a year-over-year basis for all major market segments with the strongest gains in the detached home category.
Market conditions also became tighter in August 2019 compared to a year ago as new listings were down by three per cent. Year-to-date, growth in sales has far outstripped growth in new listings. “This will put pressure on prices as we move in to 2020” says Marlene Larose of the Larose Real Estate Team.
“Mississauga results have been similar. “We are experiencing less inventory than last year as we move into September which has tipped the scales towards a Sellers’ market”. Months of supply in Mississauga for all home types was 1.8 this year vs 2.2 last year. This is a significant shift which will result in increased home prices.
“Interest rates have been moving down; almost under the radar over the past few months’ states Marlene. They are now at historical lows- you can get a 5 year closed mortgage on a principal residence with a major lender at under 2.5%”.
Lower interest rates have caused homes to become more affordable for buyers- even with the stress tests that were put in place last year.
The Bank of Canada stated the first week of September that the unexpected strength of the Canadian economy and the fact that inflation is right where it should be are the reasons it has kept interested rates unchanged.
“And don’t forget – we have an election coming up both here and in the U.S.A which had to weigh in on their decision” says Marlene.
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MORTGAGE RATE UPDATE
Bond yields, which influence fixed rates have been steadily declining since November of 2018. With global uncertainty in the stock market and trade tensions between US and China business activity has slowed and more investors are turning to the bond market. This is good news for investors and all those purchasing property as fixed rates have been on the decline. As of September 10, 2019, those purchasing principal residences with less than 20% down, which is the most competitive mortgage market, rates can get rates as low as 2.39% (OAC). For those purchasing residential rental property (1-4 units) rates can be as low as 2.69% (OAC). If you are considering purchasing larger multifamily residential buildings, rates can be as low 2.5% (OAC).
The Bank of Canada made their last rate announcement on September 4,2019 and the overnight rate was maintained at 1.75% and correspondingly the prime rate for majority of lenders remained at 3.95%. Variable mortgage rates change with the Bank of Canada overnight rate. The last time the Bank of Canada increased its overnight rate was October 2018. Industry experts are currently divided with some thinking the Bank of Canada will reduce rates in the next 3-6 months and some thinking the rate will be maintained as is. Current variable rates range from 2.85% for the purchase of a principal residence to 3% on the purchase of a residential rental property (1-4 units).
For questions on financing- or to secure a rate hold - Contact Amiel Jelinek of Mortgage Alliance at 416-402-7448 | www.jelinekmortgages.ca
KNOW YOUR HOME'S VALUE
Getting your home’s value from a robot or an algorithm is fine until you need an accurate report. It’s kind of like searching for your symptoms on WebMD is fine until you actually need a doctor.
There are many different sites that you can use to get your home’s value, but all are not as accurate as you may think as they are missing sold data. The sites even state (in the fine print) that their reports should be supplemented with a Comparative Market Analysis from a real estate professional.
So, how do we determine your home's value?
There are a multitude of factors that we take into consideration when estimating your home’s value, and no two reports are the same. We take a look at your address- which allows us to see how much neighbouring homes have sold for and the desirability of the neighbourhood you live in. We analyze the unique features of your home and compare them to those listed and sold in the surrounding geographical area.
We then go more in-depth with our research, including checking the condition of your home, taking into consideration any updates you’ve made that could make it worth more than your neighbour’s. All of this is done to establish a range of value by several members of our team. None of our home value reports run on an
algorithm, and this information isn’t available to us or you at the push of a button.
Request your home's accurate value report today!