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Market Update

17 October 2013
Wilson Sisters

The Toronto Star reported today that home sales in Canada are expected to cool in the coming year due to the expiration of 90 and 120 mortgage approvals which may slow buyer activity. Their experts are not predicting a crash, rather a more modest increase in values than we have been seeing; around the 2% per year mark. Not really such bad news, if it comes to be. We would sure welcome a more balanced market than the one we’ve been fighting through these last months. Honestly, if there were only one or two offers on a property instead of 9 or 10, it would be a bit of a relief. It’s been a little bit of a tough go for some buyers out there these days, depending on what they are looking for. Sellers have generally been doing fine, but we long for a day when a real estate transaction involves negotiating instead of just making or accepting the strongest offer. It’s a great feeling when both parties in a negotiation come away from it feeling happy and satisfied. Bring on some balance.

We’ll leave you with the most recent market update from The Toronto Real Estate Board.

October 3, 2013 — Greater Toronto Area REALTORS® reported 7,411 residential sales through the TorontoMLS system in September 2013, representing a 30 per cent increase compared to 5,687 transactions reported in September 2012. Year-to-date, total residential sales reported through TorontoMLS amounted to 68,907 during the first nine months of 2013 – down by one per cent compared to the same period in 2012.

“It’s great news that households have found that the costs of home ownership, including mortgage payments, remain affordable. This is why the third quarter was characterized by renewed growth in home sales in the GTA. We expect to see sales up for the remainder of 2013, as the pent-up demand that resulted from stricter mortgage lending guidelines continues to be satisfied,” said Toronto Real Estate Board President Dianne Usher.

The average selling price for September transactions was $533,797 – up by 6.5 per cent year-over-year. Through the first three quarters of 2013, the average selling price was $520,118 – up by over four per cent compared to the first nine months of 2012.

The MLS® Home Price Index composite benchmark for September was up by four per cent year-over-year. The annual rate of growth for the composite benchmark has been accelerating since the spring of 2013.

“The price growth story in September continued to be about strong demand for low-rise home types, coupled with a short supply of listings. 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 out through the remainder of 2013,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.