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Welcome to RockyCerone.com, your source for Toronto and Vaughan Real Estate.
Greater Toronto Area:
In the month of December 2011, there were a reported 4,718 residential resale transactions that flowed through the MLS system. Last year, within the same period, there were 4,286 transactions, which constitutes an increase of 10% from the year prior. As for new listings, there was a total of 4,811, which is an increase of 13% compared to the previous December in 2010. The residential resale average price showed an increase of 4.1% to $451,436 compared to $433,523 in December 2010.
The total year end sales for the GTA showed an improvement of 4% compared to 2010 year end total of 89,347 and the average selling price increased as well to $465,412 compared to $431,276 up 8%.
Vaughan:
In the City of Vaughan, there has also been consistent growth in activity in the real estate market. The number of sales for the month of December was 199 properties, a 7.6% increase in comparison to the same period last year. The average sale price has also strengthened from $547,500 in December 2010 to $562,602 in 2011 a growth of 2.8%. Total transactions for the year raised by 10% as compared to the previous year from 3,818 in 2010 to 4,198 in 2011.
On a wider perspective, we have witnessed the real estate market strengthen in 2011 and we can envision the same for 2012, predicated on the notion that interest rates remain constant going into this year. Buyers can continue the search for their dream homes, with the knowledge of having a strong real estate market backing. Sellers can rest assure that prices will not drop dramatically in this new year, due to factors such as stable mortgage interest rates and affordability.
Canadian banks in the beginning of the year made changes to the lending procedures and qualifications. We saw the removal of the 35 year amortized mortgage and also in order to obtain a variable mortgage, the purchaser must qualify for a fixed rate before doing so. I believe this was an excellent move made by the government and financial industry as it has tightened up lending qualifications/regulations to bar any possible influx of high risk mortgage lending to high risk individuals. As I mention to my clients, it is important you do not put yourself in a tough situation where you can no longer afford your interest payments because the interest rates have gone up. Preapproved for a mortgage of $500,000, does not mean you have to purchase a home for that amount.
In the end, there is no magical crystal ball that will tell us about the future, so we must be aware of market volatility coming into 2012 with a close analysis of the European crisis and the prospect of its effects on the real estate market. Be confident in the Canadian market into the new year but always with a sense of caution toward personal investments.
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