Toronto Real Estate Market Report: July 2011 Mid-Month Statistics

Following is TREB’s market report for mid-July 2011:  During the first 14 days of July, Greater Toronto REALTORS® reported an increase in sales and the average selling price compared to the first two weeks of July 2010.  The number of sales through the TorontoMLS® system was up 35 per cent to 3,609, compared to 2,672 last year.

“Low mortgage rates, rising incomes and good news on the jobs front have kept consumers confident in purchasing a home in the Greater Toronto Area.  In fact, home buyers are much more confident than they were this time last year when concerns around the HST, interest rate hikes and new mortgage lending rules had temporarily put a damper on home sales,” said Toronto Real Estate Board (TREB) President Richard Silver.

Tight market conditions in the GTA drove a strong rate of price growth through the first two weeks July.  The average selling price was $464,277 – up 9.6 per cent compared to the average of $423,773 in July 2010.

“Enhanced competition between home buyers continued to drive strong price growth through the first two weeks of July,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.  “While new listings were up year-over-year in the first half of the month, seller’s market conditions were sustained as sales grew at an even greater rate.”

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: June 2011 Statistics

Following is TREB’s market report for June 2011:  Greater Toronto REALTORS® reported 10,230 home sales through the TorontoMLS® system in June 2011 – up 21 per cent compared to June 2010. This number represented the third best June result on record behind 2007 and 2009. The number of transactions during the first six months of 2011 amounted to 48,189 – down by 4.5 per cent compared to the first half of 2010.

“The strong June result capped off an interesting first half of 2011,” said Toronto Real Estate Board President Richard Silver. “The pace of sales was a bit sluggish at the beginning of the year, but rebounded in May and June. Because of the positive affordability picture, home buyers remained confident in their ability to purchase and pay for a home over the long term.”

The average price for June transactions was $476,371 – a 9.5 per cent increase over June 2010. Through the first six months of the year, the average selling price was $467,169 – almost an eight per cent increase compared to the same period in 2010.

“While sales have been strong, we would be on track for a record number of transactions in 2011 if not for the decline in listings so far this year,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “Tight supply meant more competition between home buyers and an accelerating annual rate of price growth in the second quarter.”

“Home owners will likely react to the stronger price growth by listing their homes in greater numbers. A better supplied market would result in more moderate price increases,” continued Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Love Where You Live? Tell Us Why For A Chance To Win $20,000!

Love where you live?  Looking for a way to publicly sing the praises of your neighbourhood or community?  Interested in a chance to win $20,000?  You're in luck...  Last week Royal LePage kicked off their annual "My Great Neighbourhood" contest!

It's simple - submit a short paragraph explaining why you love your neighbourhood or community.  And be sure to include up to 5 photos or 1 video as part of your submission. Take a look here and click on "Past Entries" to see what other contestants have come up with.

Winners will be selected based on 3 main criteria:

• Originality and creativity of entry.
• Quality of neighbourhood information.
• Number of votes received - the more your story is shared, the greater your chance of winning.

As if the opportunity to acclaim your 'hood wasn't motivation enough, you've got a shot at winning one of three cash prizes:

• $20,000  -  Grand Prize
• $3,000  -  Second Prize
• $1,000  -  Third Prize

If you're interested in entering the contest, check out the website here.  Keep in mind - not only is this a great way to share a little neighbourhood pride, it's also an incredible opportunity to promote your neighbourhood to potential buyers across the country.

Good luck!

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Spotlight: "The Hudson" In The King Street West Area

Over the last few years, King Street West (I’m talking here about that stretch of King running west from Spadina to Bathurst) has seen plenty of residential growth.  Not only in the number of new buildings in the area, but in the value of the real estate as well.  Per square foot, this is one of the priciest areas in the city.

Yes, Mr. Freed is responsible for much of the new development here (The Thompson Residences, 66 Portland, 20 Stewart...).  But let’s not forget the building that sits at the eastern end of this stretch – the building that in many ways set a benchmark of quality for all that would follow...  The Hudson.

If you're not already familiar with the building, it's the condo that sits above the Fresh & Wild Food Market and the west-bound streetcar stop on King at Spadina.  If you've passed by, chances are you've snuck a peek and seen the impressive lobby inside (check out the photo below).  The interiors were designed by Brian Gluckstein and the all-around high level of quality has helped the building garner an impressive reputation.  Many are proud to call The Hudson home.

Just a few weeks ago I helped a client secure a one-bedroom suite in the building.  We’re going for his first purchaser’s visit in a few days and needless to say, he’s very excited to get the keys in July and move into his new home (congrats Brian!).

A bit more about the building:

The Hudson was developed by Great Gulf Home (also responsible for The Morgan, The Saint James, and 18 Yorkville, among others), and designed by Diamond & Schmitt Architects.  Completed in 2007, the building has 21 floors and sits at the northeast corner of King & Spadina.  The municipal address is 438 King Street West.

The building amenities include 24 hr concierge, fitness facility (aka “The Husdon Club”), outdoor terrace/garden (located on the 2nd floor), party/meeting room, billiards room, and visitor parking.  I’ve included photos of some of the common elements below.

If you own a suite in The Hudson and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you're thinking of purchasing a suite in The Hudson specifically, or in the King West Area in general, feel free to contact me for more info.

Toronto Real Estate Market Report: June 2011 Mid-Month Statistics

Following is TREB’s market report for mid-June 2011: The number of sales and the average selling price reported by Greater Toronto REALTORS® were both up during the first 14 days of June 2011. Sales through the first two weeks of June amounted to 4,787 – up 16 per cent over the same period in 2010. The average selling price for these transactions, at $477,853, was up nine per cent.

“The spring has always been the busiest time in the resale market, but the results for May and the first two weeks of June represented a marked improvement over last year. Low mortgage rates have kept affordability in check and buyers have felt confident in paying for a home over the long term,” said Toronto Real Estate Board (TREB) President Bill Johnston.

The number of new listings on the TorontoMLS® between June 1st and June 14th was down by eight per cent compared to 2010.

“Listings have been in short supply this year, while a lot of people have been looking to buy. The result has been enhanced competition between buyers and more upward pressure on price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Strong price growth will prompt more home owners to list as we move toward 2012.”

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: May 2011 Statistics

Following is TREB’s market report for May 2011: Greater Toronto REALTORS® reported 10,046 sales in May 2011 – up six per cent compared to May 2010. This result was the second best on record for May under the current Toronto Real Estate Board service area. The number of new listings in May, at 16,076, was down 15 percent compared to last year.

“Positive economic news and low borrowing costs led to strong sales through the first five months of the year, including the increase in May,” said Toronto Real Estate Board President Bill Johnston. “At the same time, the market has become much tighter compared to last year, due to a substantial dip in new listings.”

Homes were on the market for an average of 23 days and sold for an average price of $485,520– up nine per cent compared to $446,593 in May 2010. The strongest rate of price growth was experienced for single-detached homes sold in the City of Toronto.

“We have seen clear-cut seller’s market conditions emerge over the past two to three months,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis. “The robust price appreciation that we have seen will hopefully prompt more households to list, resulting in a more balanced market later this year,” continued Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Is About To Get Re-Districted!

     Take a look at the above photo.  This is how the Toronto Real Estate Board divides up the city.  Furthermore, each of these four areas (Central, North, East, and West) are divided up into districts.  For example, the Central area is divided up in Disticts C01, C02, C03... C15 (check out the photo below). 

As it is now, if I have a client looking for a condo in the St Lawrence Market area, the narrowest geographical search that I can provide them with is for District C08.  This means that they'll be sent listings for properties that are located as far north as Bloor St!  Not good.  And what if I have a client looking to purchase a home in Little Italy?  Little Italy sits in Disctrict C01, but so do properties that are located as far east as Yonge St and as far south as the Waterfront!

There has to be a better way!  Finally, after years of waiting, there is...

Following is an excerpt from a release that realtors were given a few weeks ago, describing the coming changes to the current system:  "On July 5, we'll see the fulfillment of a major objective: the replacement of our old MLS® districts with easier to understand community names.

Not only do the current district names not make sense to your clients, you can’t use them to accurately target what your clients want. It is almost impossible to target a search in our MLS® system to a specific neighbourhood...

Re-Districting will solve these problems, replacing the code numbers with true geographic areas, giving your searches greater clarity and a tighter focus.

On July 5, community, or neighbourhood names, are replacing the districts. Their names and their boundaries were provided by government bodies with REALTOR® input. In this way, the names will make sense to the people who live in the area and REALTORS® who work in the field."

Here's TREB's current map for the Central Disticts:

And here's a snapshot of what the new and improved map will look like (Districts C01 & C08):

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: May 2011 Mid-Month Statistics

       Following is TREB's market report for mid-May 2011:  Greater Toronto REALTORS® reported 4,774 sales through the TorontoMLS® during the first two weeks of May 2011. This result was two per cent lower than the May 2010 figure of 4,887.

"The strong sales reported for the first half of May reflect the positive economic outlook for the GTA. With the number of jobs increasing and earnings growing, it makes sense that households remain confident in their ability to purchase and pay for a home over the long term," said Toronto Real Estate Board President Bill Johnston.

The average selling price for the first 14 days of May was $486,223 – an increase of more than eight per cent compared to the same period in 2010.

"The average home selling price has been growing at a faster rate over the last two months. This is not surprising given that the number of homes available for sale has been down substantially in comparison to 2010. Increased competition between buyers for available listings has prompted enhanced upward pressure on home prices," explained Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: April 2011 Statistics

       Following is TREB’s market report for April  2011: Greater Toronto REALTORS® reported 9,041 existing home sales through the TorontoMLS® system in April 2011.

This result was down 17 per cent compared April 2010 when sales spiked to a new record of 10,898.  While off last year’s record result, April 2011 sales were in line with the average April sales level reported over the previous five years.

“Existing home sales have been strong from a historic perspective through the first four months of 2011.  Expect the pace of sales to remain robust through the spring, as the economy expands and home buyers continue to benefit from affordable home ownership opportunities,” said Toronto Real Estate Board (TREB) President Bill Johnston.

Market conditions tightened markedly over the last year. April 2011 sales accounted for 62 per cent of new listings during the month – up substantially from 53 per cent in April 2010. Tighter conditions resulted in the average April selling price growing by nine per cent annually to $477,407.

“The number of listings has been below expectations so far this year. Increased competition between home buyers has led to an accelerating annual rate of price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The strong price growth experienced in April should result in more listings and more balanced market conditions.”

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: April 2011 Mid-Month Statistics

       Following is TREB's market report for mid-April 2011:  Greater Toronto REALTORS® reported 4,444 sales during the first two weeks of April 2011 – a three per cent decrease compared to the first two weeks of April 2010. The number of new listings was down by 21 per cent compared to the same period last year.

“Sales activity was quite strong during the first two weeks of April. If this level of activity is sustained for the remainder of the month, we could see April transactions close to last year’s record result. Positive economic news has kept households confident in their ability to purchase and pay for a home over the long term,” said TREB President Bill Johnston.

The average selling price for firm deals reported through the first two weeks of April was $483,165, representing a 12 per cent increase over the average price of $430,271 reported during the same period last year.

“The number of homes listed for sale so far in 2011 has been below expectations. Market conditions have tightened, resulting in increased competition between home buyers and accelerating rates of average price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The strong rate of price growth reported for the first two weeks of April should entice more households to list their homes for sale. This would result in more balanced market conditions and more moderate rates of price growth,” continued Mercer.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

It's Garage Sale Time Again!

     It's that time of year again...  Royal LePage's annual Garage Sale For Shelter is just around the corner and we need your help!  Last year's sale was a great success (read my BLOG post from last year here), and we're hoping to do even better this year.

Here are the event details:

• When:  Saturday, May 14th from 9am to 3pm (Rain date:  Sunday May 15th)

• Where: 905 King Street West (at Strachan)

• Why:  To support the Royal LePage Shelter Foundation, Canada’s largest public foundation dedicated exclusively to supporting women’s shelters and ending violence against women and children.

Last year, Royal LePager’s raised over $315,000 - more than double the previous year.  The community is encouraged to take part again this year by donating gently used items to our office (located at 905 King Street West), by helping us spread the word, and by joining us on May 14th.  With the support of local residents and the generous sponsorship of TD Canada Trust, Atlas Van Lines Canada and Advance Commission Company of Canada, we’re poised to beat our record again!

Right now we're looking for donated items for the garage sale.  If you've got anything that you're happy to part with for a good cause, give me a shout and we'll schedule a time to swing by and pick it up.

Acceptable items for donation are as follows:

• Furniture in good condition
• Books
• CD's & DVD's
• Small appliances & electronics
• Toys with all parts
• Jewelry
• Kitchen ware
• Decorative accessories like candleholders, art prints, etc
• Sporting goods
• Tools

To learn more about the Royal LePage Shelter Foundation, check out their website here.  And you can visit our Facebook Page here.

Looking forward to a great turnout on the 14th and a successful garage sale!

Toronto Real Estate Market Report: March 2011 Statistics

     Following is TREB's market report for March 2011: Greater Toronto REALTORS® reported 9,262 transactions through the TorontoMLS® system in March 2011, representing the second best March result on record. The number of transactions was 11 per cent lower than the record result reported in March 2010.

“The strong home sales reported in March and throughout the first quarter of 2011 have been based on a solid affordability picture and improving economic conditions in the GTA and country-wide,” said Toronto Real Estate Board (TREB) President Bill Johnston.

The average selling price for March 2011 was up five per cent year-over-year to $456,147. The strongest average annual price growth was reported for condominium apartments and semi-detached houses, at approximately seven per cent for both home types.

“Market conditions were tighter in March compared to last year. With more competition between buyers, we have seen a strong but sustainable rate of price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Spotlight: "Sudbury Townhomes" In The King Street West/Liberty Village Area

     Back in the fall I had a listing in one of the condo townhomes on Sudbury Street.  That listing prompted me to write a full blog post on “The Appeal Of A Condo Townhouse” (read it here).  With the spring market kicking into high gear, I figured this would be a good time to revisit the subject and take a closer look at the Sudbury Townhomes in particular.

Location, Location, Location:  The beauty of these townhomes is that they’re located just steps from two of the city’s most sought after neighbourhoods, King Street West/Liberty Village and Queen Street West.  Don't think that the close proximity to these two bustling areas means that the townhomes are set against a concrete urban backdrop.  Instead, they’re nestled along a winding residential streetscape that links the two neighbourhoods.  You’ve got the best of both worlds here - you’re close to the action while at the same time being a bit off the beaten path.

The Sudbury Townhomes were developed by Urbancorp (also responsible for 954 King West, the Electra Lofts, and the KingTowns, among others).  It was completed in 2000 and the municipal addresses sit in the 5 - 12 Sudbury Street range.  The structures themselves are 4 storeys tall.  Take a look at the Google Street View map here. 

Layouts range in size from just under 700 sq ft up to almost 1800 sq ft.  The lower level (walk-down) suites are single storey and have a garden terrace outside the front door.  The main level (walk-up) suites are single storey as well, with a balcony off the living room.  The upper level suites are 2 storey, plus an upper landing that houses the HVAC system, the washer/dryer, and a walk-out to the private rooftop terrace.  The largest suites are spread out over all four storeys.

While condo townhouses aren't for everyone (there are still those who prefer to live in a highrise building), they make great homes for those who are seeking something a bit quiter, something a bit more private, and something closer to a freehold house (without all of the maintenance).

If you own a suite in the Sudbury Townhomes and are thinking of selling, feel free to contact me for an evaluation of your property or for more info on my listing services.

If you're thinking of purchasing a suite in the Sudbury Townhomes specifically, or in the King West/Liberty Village Area in general, feel free to contact me for more info.

Five For Friday

     It's roundup time!  Let's take a look back at some of the more interesting articles, videos, and photos that popped up over the past two weeks... 

#5.  Photos Of The Supermoon Above Toronto

     On the 20th, Derek Flack of blogTO posted a choice selection of photos of Saturday's supermoon.  Stunning photos aside, I think David did a good job of summing up this rare natural wonder when he wrote, "Impressive, yes. Jaw-droppingly amazing, not so much."  Read the full article here.

#4.  Green Roofs Toronto

     On the 15th, Jessica Lemieux of Spacing Toronto took a look at some of the city's best know green roofs.  The ESRI building, Mountain Equipment Co-op, the Hugh Garner Co-op, and our very own City Hall were featured.  Read the full article here.

#3.  Despite Stress, No Crash Seen In Housing

     On the 14th, Steve Ladurantaye of the Globe and Mail outlined a number of reasons why, despite signs of stress, the Canadian real estate market won't crash.  Read the full article here.

#2.  World's Richest Man Buys Manhattan's Most Expensive Townhouse

     On The 17th, Cliff Peskin of BuzzBuzzHome wrote about the recent $44 million sale of a 20,000 square foot Manhattan townhouse.  Listed in the spring of 2010 for $50 million, the property was finally purchased by a man named Carlos Slim Helu (he holds the #1 seat on Forbes' "Richest People" list).  Read the full article here.

#1.  Nostalgia Tripping: Canada's First Subway System

     On the 19th, Agatha Barc of blogTO looked back to the March 30th, 1954 opening of the country's first subway line.  It stetched between Eglinton and Union stations and a single fare was $0.10 (tokens were 3 for $0.25)!  The article paints a good picture of the events leading up to that historic day (and there are a handful of great photos to boot).  Read the full article here.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: March 2011 Mid-Month Statistics

      Following is TREB's market report for mid-March 2011:  Greater Toronto REALTORS® reported 4,138 sales during the first two weeks of March 2011 – a five per cent decrease compared to the first two weeks of March 2010. The number of new listings also dipped – down by 15 per cent compared to the same period last year.

"A positive economic outlook for the Greater Toronto Area, including steady growth in jobs and incomes, has kept households confident in their ability to purchase and pay for a home over the long term," said Toronto Real Estate Board (TREB) President Bill Johnston.

The average price for transactions during the first 14 days of March was $460,196, representing a 4.6 per cent increase compared to the first two weeks of March 2010.

"Market conditions are tighter compared to this time last year, resulting in more competition between buyers and sustained upward pressure on the average selling price. The annual rate of price growth is expected to range between three and five per cent in 2011," said Jason Mercer, TREB's Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: February 2011 Statistics

       Following is TREB's market report for Febuary 2011: Greater Toronto REALTORS® reported 6,266 transactions through the TorontoMLS® system in February 2011. This result was 14 per cent lower than the record sales reported in February 2010.

While not representing a record, February 2011 sales were 50 per cent higher than the number reported in February 2009 during the recession and slightly higher than the average February sales over the previous ten years.

“Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong,” said Toronto Real Estate Board (TREB) President Bill Johnston.

The average selling price for February 2011 transactions was $454,423, which was more than five per cent higher than the average selling price reported in February 2010.

“Market conditions remain quite tight in the GTA. There is enough competition between home buyers to promote continued price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: February 2011 Mid-Month Statistics

       Following is TREB's market report for mid-February 2011:  Greater Toronto REALTORS® reported 3,084 sales during the first two weeks of February 2011 – a 13 per cent decrease compared to the first two weeks of February 2010.

"We are on pace for a strong sales result in February, but transactions will come in lower than the recordresult reported last February. Sales remain strong because the GTA resale market contains a diversity of housing types catering to a wide array of home ownership needs," said Toronto Real Estate Board (TREB) President Bill Johnston.

The average price for transactions during the first 14 days of February was $451,257, representing a five per cent increase compared to the first two weeks of February 2010.

"Average selling price growth for existing homes is expected to range between three and five per cent this year. Tighter market conditions over the last four months have pushed price growth to the top end of this range," said Jason Mercer, TREB's Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Toronto Real Estate Market Report: January 2011 Statistics

       Following is TREB's market report for January 2011:  Greater Toronto REALTORS® reported 4,337 transactions through the TorontoMLS® system in January 2011. This result was 13 per cent lower than the record result reported in January 2010.

"While off the record pace experienced a year ago, the GTA resale market has started the year on a solid footing. Home buyers in Toronto and surrounding areas continue to benefit from a diversity of housing types for sale at many different price points," said TREB President Bill Johnston.

The average selling price for January 2011 sales was $427,037, representing an increase of over four per cent compared to the average of $409,058 reported in January 2010.

"The average selling price is expected to grow at a moderate pace in 2011. Growth rates in the three to five per cent range will be sustainable from an affordability perspective," said Jason Mercer, TREB's Senior Manager of Market Analysis.

Median Price In January, the median price was $360,000, from the $350,000 recorded during January of 2010.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.

Federal Government Changes Mortgage Rules, Again

       It's been almost a year since the Feds last tightened lending rules (you can read my BLOG post from last February here).  Last week, Jim Flaherty and the Government of Canada announced three further changes to the standards involved in Government backed mortgages:

• The maximum amortization period will be reduced from 35 years down to 30 years.
• The maximum amount Canadians can borrow in refinancing their mortgages will be reduced from 90% of the value of their home down to 85% of the value of their home.
• Government insurance backing on lines of credit that are secured by homes (eg. a home equity line of credit) will be withdrawn.

Realistically, it's the first one on the list that'll have the most significant effect (at least from my perspective as a Realtor working in downtown Toronto).  I'm sure there'll be a push in the coming weeks as buyers are motivated to secure a property before the mortgage changes take effect (March 18th).  The line of credit changes come into effect a month later (April 18th).

Following is last week’s release from the Department Of Finance Canada:

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Christian Paradis, Minister of Natural Resources, today announced prudent adjustments to the rules for government-backed insured mortgages to support the long-term stability of Canada’s housing market and support hard-working Canadian families saving through home ownership.

“Canada’s well-regulated housing sector has been an important strength that allowed us to avoid the mistakes of other countries and helped protect us from the worst of the recent global recession,” said Minister Flaherty. “The prudent measures announced today build on that advantage by encouraging hard-working Canadian families to save by investing in their homes and future.”

“The economy continues to be our Government’s top priority,” continued Minister Paradis. “Our Government will continue to take the necessary actions to ensure stability and economic certainty in Canada’s housing market.”

The new measures:

• Reduce the maximum amortization period to 30 years from 35 years for new government-backed insured mortgages with loan-to-value ratios of more than 80 per cent. This will significantly reduce the total interest payments Canadian families make on their mortgages, allow Canadian families to build up equity in their homes more quickly, and help Canadians pay off their mortgages before they retire.
• Lower the maximum amount Canadians can borrow in refinancing their mortgages to 85 per cent from 90 per cent of the value of their homes. This will promote saving through home ownership and limit the repackaging of consumer debt into mortgages guaranteed by taxpayers.
• Withdraw government insurance backing on lines of credit secured by homes, such as home equity lines of credit, or HELOCs. This will ensure that risks associated with consumer debt products used to borrow funds unrelated to house purchases are managed by the financial institutions and not borne by taxpayers.

Our Government’s ongoing monitoring and sound underlying supervisory regime, along with the traditionally cautious approach taken by Canadian financial institutions to mortgage lending, have allowed Canada to maintain strong and secure housing and mortgage markets.

The adjustments to the mortgage insurance guarantee framework will come into force on March 18, 2011. The withdrawal of government insurance backing on lines of credit secured by homes will come into force on April 18, 2011.

For access to a Mortgage Calculator and other financial tools, visit my website here. 

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Toronto Real Estate Market Report: January 2011 Mid-Month Statistics

 

     Following is TREB's market report for mid-January 2011: Greater Toronto REALTORS® reported 1,563 sales during the first two weeks of January 2011 – an 11 per cent decrease compared to the first two weeks of January 2010. 

"While off the record pace experienced last January, sales remain high from a historic perspective and market conditions remain tight enough to support a sustainable rate of price growth," said Toronto Real Estate Board (TREB) President Bill Johnston. 

The average price for transactions during the first 14 days of January was $413,565, representing a five per cent increase compared to the first two weeks of January 2010.

"Average price growth continues to be supported by a positive affordability picture.  A household earning the average income can afford mortgage payments associated with the purchase of an average priced home," said Jason Mercer, TREB's Senior Manager of Market Analysis.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

For complete copies of TREB’s Monthly Market Watch Reports, visit my archives here.