Real Estate Homeward Blog
Market Update June 2013
Last June, Finance Minister Jim Flaherty announced 2 important changes to mortgages. The maximum amortization was reduced from 30 years to 25 years and high ratio mortgage insurance would no longer be available for homes selling over one million dollars.
It appears that many purchasers who put off their decision to buy are back in the market place. I am personally noticing that there is presently a huge pent up demand of buyers and sellers which means that sales will be solid for the remainder of the year.
The market usually peaks in price and unit sales somewhere between April and June. This year I am expecting the peak to have been in May.
Home sales were down by 3.4 % last month in comparison to May 2012. The average selling price was up by 5.4% compared to last May.
Home Market Indicator
May 2013 May 2012 % Change
Sales 10,182 10,544 (-3.4%)
Average Price $542,174 $514,565 (5.4%)
Source: Toronto Real Estate Board
“The annual rate of price growth in May was not surprising given the competition that still exists between buyers, particularly for low-rise home types such as single-detached and semi-detached houses. We remain on track for a three-and-a-half per cent increase in the average selling price for 2013 as a whole,” said Jason Mercer, TREB’s Senior Manager of Market Analysis
Buy & Sell Smart. Invest Wisely!
Roger Gallibois, B.Sc., P.Eng. Broker/Owner