Real Estate Homeward Blog

MARKET UPDATE OCTOBER 2014

MARKET UPDATE OCTOBER 2014

GTA real estate prices continue to increase, primarily due to historically low interest rates. Over the last couple of weeks the stock market has been volatile among signs of weakness in the international economy. Therefore, it is unlikely that interest rates will increase within the next 6 months. Furthermore, if interest rates were to increase, they would probably begin their rise in the U.S. and the U.K. before they do so in Canada. The Bank of Canada prime rate has been at 1% for the past 4 years, the longest pause in Canadian history. If interest rates were to increase, I would expect a moderate increase(s) amounting to between 25 and 100 basis points (0.25% to 1.0%), keeping rates at still very low historical levels.

   

Home sales were up by 10.9% last month in comparison to Sept 2013.  The average selling price was up by 7.7% compared to last Sept.

 

 

Home Market Indicator

 

                    Sept  2014                 Sept 2013                 % Change

 

Sales                                                  8,051                        7,257                           +10.9%

Average Price                                   $573,676                   $532,455                 +7.7%

Source: Toronto Real Estate Board, Jason Mercer

"If the current pace of sales growth remains in place, we could be flirting with a new record for residential sales reported by TREB Members this year. On the pricing front, the multitude of willing buyers in the marketplace coupled with the short supply of listings will continue to translate into very strong annual rates of price growth in the fourth quarter," said Jason Mercer, TREB's Director of Market Analysis.

 

Regards,

 

Roger Gallibois, B.Sc., P.Eng.                              

Broker/Owner                                                         



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Toronto Real Estate Board - IDX Last Updated: 8/18/2017 6:34:31 AM