Below is the latest press release from Toronto Real Esate Board for the 1st half of March 2010. Where is the market headed?
recently, the Federal Government announced some changes to the mortgage rules. My feel is that these rules will lead to a short term (but above average) increase in house prices in the GTA. The increased pressure on the price will stay on until about beginning of July. Then there would be a steep adjustment in house prices. Firstly, due to mortgage rules, and then due to imposition of Harmonized Sales tax that will increase the tax on services related to purchase of homes.
Toronto / Greater Toronto Area Mid-March Sales Data...What does it show?
GTA REALTORS® REPORTING MARCH MID-MONTH HOUSING STATISTICS
TORONTO, MARCH 17, 2010- Greater Toronto REALTORS® reported 4,353 sales through the Multiple Listing Service® (MLS®) during the first two weeks of March.
This represented a 70 per cent increase compared to the 2,562 sales recorded during the same period in 2009 when resale transactions had dipped markedly due to the recession. The mid-month sales total was also 16 per cent higher than the previous March mid-month high reached in 2006.
"The spring-like weather in the first half of March brought the first green sprouts of the recurring spring market. Every year, monthly sales climb steadily through May," said Toronto Real Estate Board President Tom Lebour. "People are buying homes because they are confident in the current economic recovery and mortgage payments on the average priced home remain affordable."
The average price for March mid-month transactions was $440,153 - a 20 per cent increase over 2009. New listings within the Toronto Real Estate Board boundaries were up 34 per cent to 8,540.
"Look for double-digit annual price increases to cease later in 2010, as new listings rebound from the low levels experienced in 2009," said Jason Mercer, TREB's Senior
Manager of Market Analysis. "Increased listings will give buyers more choice, resulting in less upward pressure on home prices."
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