Toronto, August 4, 2011 —Greater Toronto REALTORS®reported 7,922 transactions through the TorontoMLS® system in July 2011, representing a 23 per cent increase over July 2010. Total sales through the first seven months of this year amounted to 55,863 –down by 1.3 per cent compared to the same period in 2010. After adjusting for seasonal fluctuations, the July figure continued to point to an annual sales result close to 90,000 –in line with results from the previous six months.
"Strong home sales continued in July, with a substantial rebound over last summer’s slow-down brought about by higher mortgage rates, new lending guidelines and misconceptions about the HST. The greatest rebound was seen in the condominium apartment segment in the City of Toronto," said Toronto Real Estate Board President Richard Silver. "If the current pace of sales holds up, we could see the second best year on record under the current TREB market area."
The average selling price in July was $459,122 –up by almost ten per cent compared to the July 2010 average of $418,675.
“Tight market conditions have boosted the annual rate of price growth this year. However, the listings situation is starting to improve. A better supplied market later this year and into 2012 would lead to a more sustainable rate of price
Who can be blamed for thinking mortgage rates will stay in the basement for the foreseeable future? We’re witnessing:
•Surprisingly low U.S. jobs growth
•A contracting Canadian economy
•A U.S. Fed that’s pledging to remain on hold till 2013, and limiting the Bank of Canada’s options.
That’s got many wondering why on earth anyone would take a fixed mortgage rate.
Indeed, noted CIBC economist, Benjamin Tal, says: "We know the five-year (fixed) rate is attractive, but we also know short-term rates are not raising."
Despite the economic negatives, however, the rate choice is not clear cut. Prime rate could theoretically remain as-is for a year and a half (i.e., until near the expiry of the Fed’s conditional pledge) and then jump 150+ basis points. In that scenario, a four-year fixed near 3% could cost less than a variable over four years, other things being equal.
In the end, most people’s fixed/variable decision boils down to how much they want to pay (or need to pay) a lender for borrowing cost certainty.
Variable rates are roughly prime - 0.70% on the street at the moment. That’s 69-79 bps cheaper than a good 4-year fixed (arguably the best fixed term at the moment). At the outset, that variable rate would save you $37/month per $100,000 of mortgage.
Your financial breathing room will largely determine if this upfront savings is enough to gamble that rates stay low after 18 months or so. If you don’t want to bet all your chips you can always consider a hybrid (i.e., a mortgage split into fixed-rate and variable-rate portions).
Professor Moshe Milevsky, Canada’s best known mortgage researcher, recently told FP: "I still don't get why more Canadians don't split their mortgage."
Milevsky is a noted proponent of hybrid mortgages, for two reasons: 1) people have no clue where rates will go; and, 2) rate diversification offers the same benefits as investment diversification.
GTA West is a blog that covers market updates, new developments and many other interesting topics. My goal is to provide interesting and insightful information for anyone who is interested in the Real Estate market and the opportunities within it.
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Lago at the Waterfront
Are you ready to live in luxury by the lake? Think landscaped green space; think access to highways and public transit; think world-class amenities; think affordability. Think Lago condos by Monarch. Located next to the Martin Goodman trail, the newest building in Monarch's master-planned community is to be a 52 storey tower atop a three-storey podium. Amenities wil include a 24/7 security guard and concierge; exercise room with commercial-grade equipment; an indoor pool, sauna and hot tub; a private theatre, sports lounge, and a swanky designer party room.
Address: 2151 Lake Shore Boulevard West
Builder Name: Monarch
Prices: $247,990 - $341,990 (1 bedroom)
Occupancy: December 2016
Maintenance Fees: $0.51/sf
It's time to put yourself in the Limelight! Limelight is the fifth condominium building in Daniels’ City Center master-planned community. The green light that shines from its rooftop symbolizes Mississauga’s connection to the environment. It isn’t just for show, either: Limelight is part of the Daniels’ Corporation’s vision of a world of sustainable, beautiful, liveable communities. It’s the only building in the City Centre area to offer a rooftop greenhouse and gardening terrace, where you'll have the chance to reduce your carbon footprint and your stress level.
1. Grab them from the curb.
2. Make it sparkle.
3. Pay attention to color and light.
5. Consider replacing furnishings.
6. Invest in new artwork.
7. Make repairs.
8. Apply a fresh coat of paint.
9. Don't forget the floors.
10. Renew light fixtures.
New Search Feature
New search feature is now available on my website, you can now browse the MLS system straight from my website. It is simple and easy! Click HERE to try it today!