Greater Toronto REALTORS® reported 7,922 transactions through the Toronto MLS® 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 growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Due to US Congress’s debt agreement, Weaker economic data out of the U.S. and Ongoing angst about the euro-debt dilemma, global investors are now finding Canadian treasuries far more appetizing-due in part to Canada’s AAA debt rating, budgetary prudence, and stable currency. That has sparked a money rotation into Canada, adding to today’s bond buying. (When investors bid up Canadian government bonds, our yields drop.)
With the American debt Band-Aid in place and yields crashing, lenders should now be
ready to drop posted fixed mortgage rates (barring unforeseen events). With Most major banks dropping 10bps earlier this week…..Next week you may expect a further drop by few major banks.
Straight results will come on our Real Estate market……it will fuel the home prices further up. As discussed in my last news letter, this is a simple game of demand and supply.
With lowering rates, demand increases which will automatically reduce the number of days a house will stay in the market i.e. reducing inventory and henceforth putting upwards pressure on price. Under such circumstances, expect a lot of action in real estate market in the coming days!!!