Market Update Archive

How Mississauga Condo Sales Compare to GTA

Toronto house sales – and prices – continue to climb despite the best efforts by Ottawa to cool a market that shows no signs of giving buyers a breather.

Sales across the GTA were up 30 per cent in September, year over year, and prices were up 6.5 per cent over September 2012, according to figures released Thursday by the Toronto Real Estate Board.

The average transaction price for houses and condos combined last month was $533,797.

So far, three-quarters of the way through 2013 — and what was looking, a year ago, like the start of a significant slump in the resale housing market in the wake of tighter mortgage lending rules imposed by Ottawa — some 68,907 houses and condos have changed hands across the GTA.

That’s down by just one per cent over the pace of sales recorded by TREB during the same nine-month period of 2012.

The average sale price during that same nine months of 2013 has been $520,118, up more than four per cent from the first three quarters of 2012.

Condos continued a surprising surge, which started this past summer, with sales up 28.8 per cent year over year — up 31.5 per cent in the City of Toronto and 22.3 per cent in the 905 regions.

Average sale prices, however, were down 3.7 per cent in the city but up 2.9 per cent in the suburbs. That resulted in an almost 2 per cent decline in condo prices overall across the GTA from September of 2012 to the same month this year.

“The price growth story in September continued to be about strong demand for low-rise home types, coupled with short supply of listings,” says Jason Mercer, TREB’s senior manager of market analysis.

“Even with slower price growth and month-to-month volatility in the condo apartment market, overall annual price growth has been well above the rate of inflation this year.

“This scenario will continue to play through the remainder of 2013.”

Much of the rush in the market the last few months has been blamed on an unexpected increase in fixed-rate interest rates that started in late spring and has seen buyers trying to purchase before their 90- and 120-day rate commitments expire and they are forced into more costly mortgages.

There has also been some pent-up demand after the cold, wet spring put a damper on what’s usually the peak season for sales. Many realtors had expected sales to be unusually high, as a result, well into fall — and the weather has been co-operating so far.

Detached sales were up almost 34 per cent year over year across the GTA, and prices up 7.9 per cent, bringing the average sale price of a detached home in the 416 region to $856,169 and $608,866 in the 905 regions, says TREB.

Semi-detached sales were up more than 20 per cent, with average prices hitting $616,049 in the city and $405,920 in the suburbs.

Townhouse sales climbed by almost 31 per cent. The average 416 townhouse sold for $455,518 in September and $388,727 in the suburbs, up 9.7 per cent overall from September of 2012.

Condo prices slumped 3.7 per cent in the 416 region to an average of $363,149 while the average price of a condo that sold in the 905 regions in September was $290,239, up 2.9 per cent. Mississauga Condos for Sale. Mississauga Homes for Sale

Condo Market Well Supplied in the Fourth Quarter

TORONTO, January 11, 2013 — Greater Toronto REALTORS® reported 3,830 condominium apartment sales through the TorontoMLS system during the fourth quarter of 2012. This number represented a decline of 23 per cent compared to 5,005 sales during the same time period in 2011.The average selling price for condominium apartments in the fourth quarter was $332,410 – down by one per cent compared to the fourth quarter of 2011. “The condominium apartment market was the best supplied market segment in 2012.

Strong condo apartment completions in 2011 and the first few months of 2012 resulted in a substantial number of new listings on the TorontoMLS system last year.With more units for buyers to choose from, the annual rate of price growth moderated,” said Toronto Real Estate Board (TREB) President Ann Hannah.In the condominium apartment rental market, transactions rose by almost 13 per cent year-over-year in the fourth quarter, while the number of units listed for rent increased by over 17 per cent. Average rents were up on a year-over-year basis for one-bedroom and two-bedroom apartments.“While some first-time buyers put their decision to purchase on hold in the fourth quarter, many of these people chose to rent a condominium apartment instead.

Similar to the ownership market, strong new condo completions prompted a considerable increase in the number of investor-held units offered for rent. However, there was still enough competition between renters to prompt upward  pressure on average rents,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.


Mortgage rates hit historic low

It was the mortgage shot heard around the country.

BMO fired the opening salvo in a mortgage rate war this week by offering a 5-year fixed rate of 2.99 per cent, the lowest 5-year rate in modern Canadian history. Friday, other banks starting striking back, with TD and RBC cutting 4-year rates to 2.99 per cent.

Experts say other banks are likely to follow suit, with homebuyers being the clear winners.

“In the near term, mortgage rates are on sale, and that’s great news if you’re looking,” said Robert McLister, editor of the Canadian Mortgage Trends newsletter. McLister noted that even some 10-year rates are dropping.

“We’re seeing some lenders drop their 10-year rates to 3.89 per cent, which is only 70 basis points above their 5-year fixed. That kind of spread will be tempting to a lot of people,” said McLister.

While some customers might cheer the new rates, McLister wonders what took the banks so long.

“If you look at what’s been happening on the bond market, lenders have had the ability to do this for a few months, but nobody really broke ranks until this week,” said McLister. “Nobody’s really been pricing more aggressively than they had to.”

Banks are getting even more competitive than usual because they’re worried the mortgage market won’t be growing as fast as it has over the last few years, says Brian Klock, a banking analyst at Keefe, Bruyette & Woods.

“If there’s a limited supply of new mortgages coming on to the market, you want to make sure your share is as big as possible,” said Klock, pointing out the Canadian residential mortgage market grew from $729 billion in 2006 to more than $1 trillion last year. That growth came as people got their jobs back after the last recession. With unemployment now on the rise, that will likely slow down demand for housing and mortgages.

Still, even a competitor tipped his hat to the low rate.

“If you’re satisfied with everything else, take it, because 2.99 for 5-year money is a great rate,” said Peter Aceto, president and CEO of ING Direct. “I had some of the people here look into it, and it’s definitely the lowest they’ve been able to find for as far back as it’s been tracked.”

Aceto cautioned, however, that the devil is in the details. Ultra low rate mortgages usually offer less flexibility. In BMO’s case, there’s a Jan. 25 application deadline for the special rate, and it offers limited ability to pay off the mortgage early.

TD Bank dropped its 4-year fixed rate to 2.99 per cent Friday, and took a not-so-veiled shot at BMO in the process. Unlike BMO’s deep discount rate, TD’s 2.99 offers the same early payment flexibility as its standard 5-year mortgage.

“You don’t give up any flexibility at all to get this great rate,” said Farhaneh Haque, TD’s director of mortgage advice. TD’s deadline is February 29.

Aceto said ING has no plans to match the 2.99 rate.

“It doesn’t matter what day you call us, we’re going to give you our lowest rate,” said Aceto, who called the 2.99 rate “unsustainable” from a bank’s point of view.

“I can’t imagine in the profitability structure, that that’d make sense. I think 2.99 is unsustainable. . . . It’s not in anyone’s interest, except the customer,” Aceto said.

If you’ve already got a mortgage and are tempted to refinance to take advantage of the deep discounts on offer, Haque and McLister say it’s crucial to crunch the numbers first. Just because 2.99 is lower than your current rate, doesn’t mean it’s a smart financial move to change.

“There really is no one set answer that fits everybody. You have to find out what the penalties are for breaking your current mortgage. You have to do the math,” said Haque.

Elena’s December Market Watch

December Market Watch is out, you will find lots of interesting information

In this Issue:

  • Pace of Home Sales Remains Brisk in October
  • Buying a home: 7 things you need to know
  • NEW Blog – CondoSquareOne
  • Feature NEW Developments: Limelight: Phase 2 and ONYX
  • Ten Tips: Affordable Decorating Ideas
  • Recipe: Roasted Tomato and Anchovy Oreganata Pasta
  • Total Sales Activity 2010 VS 2011
  • December Events: Harbourfront Skating, Etobicoke Christmas Parade , Nutcracker Ballet
  • Videos : Condo Report and October Market Watch

Click on the image below to view it


December 2011 Newsletter

Square One Condos, Buy Sell Rent Mississauga Condos