Average Toronto detached home sale is over $966k

$$ up arrow Recent housing stats released by Toronto Real Estate Board (TREB) show listings and sales are down but, prices are up.  According to TREB, the average sale price for a detached home in Toronto is $966,875.    For those that have invested in real estate, you’ve done well.  For those that are looking to buy, this may not be such good news.. However, there is a bright spot.

TREB also said that affordability has not deteriorated due to low mortgage rates.   No doubt that low rates are helping to fuel real estate price increases.   If you are waiting for the market to fall and prices to drop, you may want to reconsider that plan.   The forecast is for prices to remain strong.

It’s been an interesting year so far.  We’ve had a cold Spring, an even colder Winter, and yet the real estate market is red hot.   Watch for house sales to remain strong.   Trying to time the market can be costly.  Just ask those that sold 2, 3 and 4 years ago.   There have been many calls to exit the market.  I have personally seen some clients sell and rent for the last 2 and 3 years.  They are questioning that decision now.

I think buying a home should be a long term investment.  Plan to hold for 7 years.  That’s a long enough time to live through any up or down housing cycles.   If you can stick with that plan, then you should be okay.  Don’t buy because you are afraid of missing out.  Buy because you need a home and can afford it.  Buy because it’s a long-term investment and you have planned and thought it out.   Buying to invest is a good idea, you just need to understand what it takes to own and finance a property.

Speak with a team of professionals.  You need a good realtor, a lawyer, a mortgage broker, and an accountant.   Professional advice doesn’t mean it’s gonna cost you a lot of money either.   Professionals usually cost less than you think.. or they get compensated by other parties.. such as realtors and mortgage brokers.. you don’t pay them when you buy a house…  The get paid by the seller or the mortgage lender (unless you don’t qualify for a traditional mortgage).    The point is, it’s easier than you think.

Your best interest is my only interest.   I reply to all questions and I welcome your comments.  Like this article?  Share with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

 

CMHC higher premiums start today

CMHCCMHC’s new higher insurance premiums take effect today.  That means it will cost you a little more if you are buying a home with less than 20% down.  The increases are minor and aren’t expected to have any effect on the housing market.  (by the way, CMHC has adjusted these premiums before)

What’s puzzling is why they felt the need to do this.  CMHC produces a healthy profit. As a crown corporation, those profits go directly into the government coffers.   CMHC arrears are at 0.33%.  That’s close to an all time low.

I guess it’s a good way to increase profits but they are making $2billion per year!   Here’s the old and new premiums.

Loan-to-Value Ratio Standard Premium (Current) Standard Premium (Effective May 1st, 2014)
Up to and including 65% 0.50% 0.60%
Up to and including 75% 0.65% 0.75%
Up to and including 80% 1.00% 1.25%
Up to and including 85% 1.75% 1.80%
Up to and including 90% 2.00% 2.40%
Up to and including 95% 2.75% 3.15%
90.01% to 95% – Non-Traditional Down Payment 2.90% 3.35%

Your best interest is my only interest.   I welcome your questions and comments.  Like this article?  Share it with a friend.

Steve Garganis 416 224 0114 steve@mortgagenow.ca

 

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