Greater Toronto REALTORS® reported 6,232 sales through the Multiple Listing Service® (MLS®) in August 2010. This represented a 22 per cent decrease compared to the 8,035 sales recorded during the same period in 2009. New listings decreased by one per cent year-over-year to 10,488.

The average price for August transactions was $411,012 - up six per cent compared to the average of $387,921 reported in August 2009. Market conditions have remained tight enough to support higher home prices in comparison to last year.

In August, the median price was $358,000, from the $338,000 recorded during August of 2009. August marked the first year-over-year decline in construction starts of detached single-family homes since June 2009.

"The momentum on new construction experienced earlier in the year has started to slow, given the elevated competition from the resale market and the expectation of rising new home inventories," says Richard Cho, senior market analyst for CMHC in Calgary.
 
 
‘Rising interest rates and a projected slowdown in job growth mean that the Canadian housing market is expected to continue to cool. This is overlooked in recent commentary that suggests further changes to mortgage  regulations may be needed. A further tightening of regulations could negatively impact Canada's softening housing market and consumer confidence,' said Georges Pahud, president of CREA.
 
High sales activity late last year and earlier this year borrowed from sales this summer and will continue do so over the coming months, according to Gregory Klump, CREA's chief economist.
 
‘This makes the return to more normal levels of sales activity look like a steep downward trend. The hangover from accelerated home purchases is likely to persist over the rest of the year. Although economic and job growth are expected to be tepid, they will continue to support housing markets,' he added.

As the Canadian real estate market continues to move from a hot seller's market to more balanced conditions, agents are finding it harder to reconcile the expectations of buyers and sellers.

This in-between kind of period where people seem to be waiting to see what will happen.

Toronto existing home sales fell by 29 per cent in the first two weeks of August compared with the same time last year.

The Toronto Real Estate Board reported 2,732 sales in the first half of the month according to a report released Tuesday.

Buyers are most concerned about the potential for prices to fall. The TD Bank said on Monday that they expect average national house prices to fall by 10 per cent over the next year.

Nationally, the Canadian Real Estate Association said sales were down by 30 per cent in a separate report Monday. The uncertainty is a real concern for people putting their homes on the market today.

Still, prices continue to go up, although at a slower pace. The average price for August mid-month transactions was $412,934, up eight per cent compared with $383,796 last year.

One reason is that new listings, at 4,770, were also down eight per cent during the first half of the month.

"We have seen a sufficient number of buyers relative to sellers over the summer months to support year over year price growth in the GTA," said Jason Mercer, TREB's senior manager of market analysis.

Analysts say many sales were pulled forward in the last 12 months because of impending mortgage regulations and new taxes, including the HST that came into effect on July 1.

Strong sales in the second half of 2009 meant that comparisons to this year are much more dramatic, says the board.

"Throughout the better part of last year, the number of monthly sales was well above the expected long term trend," said TREB president Bill Johnston. "It makes sense that the number of transactions has dipped over the past few months in comparison to last year's record results."

1. Know your current lifestyle costs. Running a home is no different than a business, and understanding expenses is non-negotiable. So, study your bills and bank statements and figure out what it really costs you to live now, pre-mortgage.

2. An illness, job loss or any number of troubles can quickly erode your finances. So in today's slow economy, put aside - and keep - a comfortable six months' worth of living expenses.

3. Know your float factor. This is the equivalent of executive risk, vis-à-vis real life. That mortgage may be affordable now when you're floating, but if interest rates or another unforeseen expense take you out of that zone, you're sunk. Don't be lulled into a false sense of security.

4. Consider alternative financing. When dealing directly with a bank, your solutions are limited. But mortgage brokers have access to any number of financing sources and programs. They understand lenders' criteria, and will offer the best suggestion for your personal circumstances.

5. Become knowledgeable. A home is most people's biggest asset and piece of financing. Read, research and talk to as many experts as you can. Learning costs only time, and better-informed decisions can save you a fortune.

6. Understand your creditworthiness. Not all debt is created equal. Neither are all borrowers. Your credit score depends on many factors, and the better it is - the easier (and generally cheaper) the financing. Mortgage carrying-costs are some of the most reasonable debts, so pay down credit cards and other higher-interest obligations first.

7. Don't hesitate to double up. The ability to pay extra directly on the principal is a must-have for almost any mortgage. Even a small amount -$50 a week - can mean big savings over time. And, if you must miss a payment, a "double-up" can help you stay on track and avoid other penalties. Talk to your financer.

8. Understand interest rates. Know the difference between fixed- and variable-rate mortgages, and the pros and cons of each. With a fixed-rate mortgage, you're bound to the terms for the length of the contract. A fixed-with-double-up option is the best of both worlds.

9. Beware of the "extras". With a down payment of less than 20 per cent, you must insure the mortgage with the Canada Mortgage and Housing Corporation or Genworth Financial Canada. Consider also buying personal term insurance, which sometimes pays the mortgage off if you die, or provides salary replacement if you're critically ill and unable to work. Other "incentives", such as lump-sum-cash-back payments, increase your carrying costs and make you further indebted to your financier.

10. Never fall in love with the deal. House hunting and mortgage shopping must be treated as business transactions. Don't become enamoured with any one house or financing offer until you're sure that it's the best available to you.

For more information  go here - http://www.torontogreathomes.com/

Alexandre Malkhassiants, Sales Representative and Mortgage Specialist,
Right at Home Realty, Centum Mortgage Decision
Office: (416) 391-3232
Cell: (416) 723-9383
E-mail: amalkhass@rogers.com
Web site: www.torontogreathomes.com
Toronto real estate market blog: http://torontorealestate.wordpress.com/

The seasonally adjusted annual rate of housing starts was reported as 189,100 units in May, according to Canada Mortgage and Housing Corporation, down from the revised 201,800 units in April.

"Housing starts decreased in both the singles and the multiples segments in May," said Bob Dugan, chief economist at CMHC's market analysis centre. "The decrease in housing starts in May is consistent with our forecast that housing starts for 2010 will reach 182,000 units."

The seasonally adjusted annual rate for urban starts decreased by 9.5 per cent to 165,200 units in May.

Housing starts were previously expected to come in at an annualized rate of 205,000 for May. But the revised number is more in line with Canada's typical household-creation rate of 175,000 a year.

Greater Toronto REALTORS® reported 4,887 sales through the Multiple Listing Service® (MLS®) during the first two weeks of May.

This represented a seven per cent increase compared to the 4,561 sales recorded during the same period in 2009. New listings increased by 48 per cent annually to 10,059.

"The average household looking to purchase a home continued to benefit from affordable opportunities in the first half of May," said Toronto Real Estate Board President Tom Lebour.

"The number of done deals will remain high for the remainder of 2010, but will dip from record levels."

The average price for May mid-month transactions was $448,641 - up 12 per cent compared to the average of $399,811 recorded during the first 14 days of May 2009.

"The total number of homes currently listed in the GTA is now within a more normal range. As buyers benefit from more choice in the second half of 2010, average selling prices will grow at a slower pace," said Jason Mercer, TREB's Senior Manager of Market Analysis.

For more information  go here - http://www.torontogreathomes.com/

•   Housing starts rise in January and are now 23% below their trough in April of last year.

•   Weekly jobless claims move up and barely budge on a four quarter moving average basis.

•   Headline inflation falls to 2.6% from 2.5% in December. Core inflation falls to 1.6% from 1.8%

•   The Canadian Federal Department of Finance announced three changes to mortgage insurance rules that will help to cool the Canadian real estate market.

•   Canadian Resale housing market data over the last three months suggest activity is cooling.  Homes sales fell 2.8% in January, the first decline in over a year.  However, a lack of supply continued to push upward pressure on prices, and home prices rose 22% from year ago levels.

•   Canadian headline CPI rose 1.9% in January, up from 1.3% in December, the largest increase since November of 2008. The Bank of Canada's core measure of inflation rose to 2.0%.

•   Canadian retail sales rose 0.4% in December. Stripping out price effects, the month's gain was slightly stronger at 0.6%.  The gain was broad based with 9 of the 12 components of retail spending increasing in the month, and underscores the strength in the Canadian domestic economy. 

Greater Toronto REALTORS® reported 1,749 existing home sales on the Multiple Listing Service (MLS®) during the first two weeks of January. This result was almost double the 888 sales reported for the same period in 2009, when sales had dipped to a recessionary low.

"We have had a strong start to 2010," said Toronto Real Estate Board President Tom Lebour. "Widespread sales growth in terms of geography and housing type indicates that many households remain confident in their ability to purchase and pay for a home over the long-term."

The average price for transactions in the first two weeks of January was $395,307, compared to an average of $332,495 for the same period in 2009.

"Double-digit average annual price growth will continue through the first quarter of 2010 as sales remain high relative to listings and we continue to make comparisons to last year's winter downturn," said Jason Mercer, TREB's Senior Manager of Market Analysis.

Once again, the Bank of Canada announced it would keep the key interest rate at a record-low 0.25 per cent to achieve its inflation target of two per cent.

While the Bank said economic growth in Canada resumed in the third quarter of 2009 and there has been a slightly higher than expected rate of inflation in recent months, it reiterated that the economy is still lagging, particularly due to factors like a strong Canadian dollar and low levels of U.S. demand.

Repeating many of the same projections as its October monetary policy report, the Bank predicted the economy to return to full capacity and reach a two per cent inflation rate in the third quarter of 2011.

It forecast the economy to grow by 2.9 per cent in 2010 and 3.5 per cent in 2011. The next Monetary Policy Report will be released Friday and the next rate announcement will be made March 2.

For more information  go here - http://www.torontogreathomes.com/

Alexandre Malkhassiants, Sales Representative and Mortgage Specialist,
Right at Home Realty, Centum Mortgage Decision
Office: (416) 391-3232
Cell: (416) 723-9383
E-mail: amalkhass@rogers.com
Web site: www.torontogreathomes.com
Toronto real estate market blog: http://torontorealestate.wordpress.com/

In October 2009, Greater Toronto REALTORS(R) reported 8,476 sales, up 64 per cent from October 2008. The average price for October transactions was $423,559 - up by 20 per cent compared to the same month last year.

"Strong sales growth has occurred across many property classes - from price ranges that would attract first-time buyers to luxury properties selling for over one million dollars," said TREB President Tom Lebour. "The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales declined at an above-average rate last year."

Year-to-date sales, at 74,721, were up nine per cent compared to the first ten months of 2008. Average price, at $392,264 was up by almost three per cent.

"After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings," according to Jason Mercer, TREB's Senior Manager of Market Analysis. "Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year."

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