Its predicted that by February the fixed mortgage rate will be somewhere around 3.5%. RBC has lowered it’s fixed 5 year rate from 3.89 to 3.74 which will cause the rest of the banks to follow suit when giving out mortgages to potential home owners.
Current Market News
New construction prices for condos rose by 12% to $768,602, and resale condos also rose by 7.5% for an average sale of $595,678. However, those prices are going to average out due to many of new construction condos being completed and ready for move in. This will moderate prices due to more supply of available listings.
Toronto has a new plan to help with the housing crisis, and that includes building new affordable rentals on surplus land. The project which is called “Housing Now” plans on 10,000 units being built, with at least half having to be affordable market rent properties. Affordable being categorized as $275 less rent monthly then those currently on the market.
According to the CREA, the Canadian property market is set to experience some growth in 2019. There is a projected increase of both home prices (2.7%), as well as homes on the market (2.1%). It is expected that the average home price in Canada in 2019 will be approximately $511,500.
The MLS Housing Price Index indicates that the average single family detached home sold for $1,097,400 in 2018. An average attached home sold for $881,700 and a townhouse sold for $633,900.
According to TREB there was a total of 77, 426 residential transactions through MLS in 2018. The average selling price for these transactions in 2018 was $787,300 for all home types for all of 2018. This represents a decrease of 4.3% since 2017 in the price of homes. A few factors contributed to this, one being the new mortgage guidelines and the stress test, which forced some homeowners trying to get into the market to put buying a house on the back burner for perhaps another year. On the contrary, condominium sales were up by 7.8% in 2018.