Real Estate Up In Q1 2015

April 14th, 2015

Number of sales increased from 8,052 in March 2014 to 8,940 March 2015. The average price of these properties increased from $557,982 in March 2014 to $613,993 in March 2015. The story is still the same…with a low supply of properties on the market and dropping mortgage rates, sales prices have been increasing.

Numbers Continue To Increase In November 2013

December 9th, 2013

November 2013 number of sales up in Toronto by 14% with the average sales price up by 11% (compared to November 2012). Real estate still moving upwards with a lack of supply on the market.

Homebuyers are buying homes they can’t afford!

September 30th, 2013

Canadian mortgage borrowing jumped in the second quarter, pushing household indebtedness to a new high, according to Statistics Canada.

At the same time, Canadian household net worth climbed in the quarter, boosted by rising home prices.

Statistics Canada said Friday the ratio of household credit market debt to disposable income increased to a new high of 163.4 per cent in the second quarter compared with 162.1 per cent in the first three months of the year.

That means Canadians owe just over $1.63 for every $1 in disposable income they earn in a year.

During the second quarter, Canadians borrowed $25.9 billion including $18 billion in mortgage borrowing. Housing sales picked up in the period from April to June, as prospective buyers raced to beat expected rate hikes.

In the previous quarter, Canadians had borrowed $3.8 billion for mortgages — the lowest level in four years — and reduced other loans and consumer credit. Tighter mortgage rules implemented a year ago by Ottawa in an attempt to cool the market led to a downturn in number of house sales, yet house prices continued to rise.

The higher value of homes helped push up household net worth — it rose 0.7 per cent in the second quarter, led by a 1.6 per cent gain in the value of houses.

Total mortgage debt stood at just over $1.1 trillion and consumer credit debt reached $500 billion at the end of the quarter. Financial experts say the levels of consumer debt in Canada are troubling, with some people carrying debt into retirement.

The increase in household net worth was held back by a weak quarter on the Toronto Stock Exchange, which saw its benchmark composite index fall 4.9 per cent in the quarter.

Statistics Canada said household net worth was $205,900 in the second quarter on a per capita basis.

Posted by Kevin Somnauth, CFA (via the CBC)
First Toronto Mortgage

Rates Stay The Same

December 10th, 2011

Canada’s key interest rate will end 2011 unchanged.

The Bank of Canada left its policy rate at 1.00% today, as anticipated.

In a statement, the Bank said European economic performance will be worse than expected, Canadian and U.S. growth are “slightly” better than expected, and inflation will “ease.”

It added: “With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada.”

Following the announcement, BMO economist Doug Porter told FP: “…I don’t really sense much of a change at all in the bank’s overall view.”

The bond market, which leads fixed mortgage rates, apparently agrees. Yields changed very little in reaction to the BoC’s decision. (5-year bond yield quote)

The next BoC rate meeting is January 17, 2012. As of today, financial markets are pricing in a 10% chance of a rate cut at that meeting and 90% chance of no change, according to Bloomberg.

First Toronto Mortgage via Canada Mortgage Trends

TD Report On Repeat Home Buyers

September 3rd, 2011

Here’s a look at what repeat home buyers are thinking when it comes to mortgages and housing, courtesy of this recent TD poll:

• 69% of repeat buyers will take out a mortgage on their new home.
• 7 out of 10 recent or prospective repeat buyers said they moved (or were moving) earlier than expected.
• 50% of repeat buyers considered a Home Equity Line of Credit (HELOC).
• 46% chose a HELOC to have a “cushion”. 45% got a HELOC for renovations. 30% planned to use it for leveraged investing.
• In 2010, 27% of Canadians who planned to sell their home didn’t know they could port their mortgage or allow someone to assume it. This year, that number dropped to only 9%. What a difference.
• 38% of sellers plan to port their mortgage to their new property.
• 14% say they will offer their mortgage for assumption, as a selling feature.

Posted by First Toronto Mortgage (