Good News For the Toronto Real Estate Market
Growth in the Toronto Real Estate Market
Senior Analyst Jason Mercer once again sits down and discusses the growth for the Toronto Real Estate market for the year of 2013. Almost 87,000 homes were sold during the year of 2013 and that is up from 2 percent during the year of 2012. That is good news, however, according to Jason Mercer, there was less growth in the first half of the year and in fact, the growth was in the negatives at 9.2 percent, while it shot up to a positive 17.8 percent in the latter half of the year.
Tougher Mortgage Guidelines to Blame For the Negative Growth
Again, according to Mr. Mercer, the reason for the negative growth for the Toronto Real Estate market was because tougher mortgage guidelines came into play during the first half of the year. This also translated to the price growth, as the price growth was 3.3 percent in the first half of the year and 7.7 in the latter half of the year. Also, the listings have decreased and that has led to more competition between buyers, further driving better pricing.
Another bit of good news is the fact that the listing and demand for condominiums has increased. There has been a record of condominiums built for the city of Toronto and this means that more condominiums will be listed in the coming year.
Moving forward, Mr. Mercer estimates that two factors will determine the growth of the market: affordability and the current listings that are on the market. In 2013, the average monthly payment for the average homeowner was around 32 percent, which is well below the 39 percent ceiling set by the federal government. This means that homes are still very much affordable for those who are buying homes in the Toronto real estate market. In closing, Mr. Mercer touches on the five year fixed mortgage and that is determined by lenders and bonds.
For those looking to buy and sell on the Toronto real estate market, the news is still very good.