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Real Estate Updates on Market Trends, House Prices, Homes for Sale in the GTA, Mississauga, Toronto, Brampton, Oakville and Burlington. Sutton Realty Blog, Sutton Mortgage, Contact Sutton 416-896-3333, 905-896-3333 Canada Toll Free 1-800-265-1361

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Toronto Real Estate Housing Market Update, May Prices Rebound, June House Sales up 19%. Buyer Tips

Spring brought positive news to the Toronto Real Estate market, to many peoples surpise the market rebounded in spite of global economic news.

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Resale House Sales up 2% over May of 2008: 

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The Toronto Real Estate Board reported 8,589 sales for the month of May,  that's up almost 2 percent form May 2008.  Along with the increase in sales came the multiple offer situations again in certain areas, likely due to the tight availability of properties being offered.   Its all about supply and demand and inventory is down.  Nearly 23,000 homes were listed for sale compared to 27,000 available at this time last year.

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Average Home Prices

The average house price in the GTA has been recorded at $395,609, down less than one percent compared to last May. The median house price for May 2009 was $337,000 down from $338,000 in May 2008.

But we now have the stats in for mid June.   The average price for an MLS resale home was $407,716, up by 2% compared to last year.

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Resale housing sales in the GTA are up 19% in the first half of June.  TREB has already reported 5,185 transaction up to June 17, 2009 (compared to 8,589 for all of May)

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Compare the Average House Prices from June 2009 to last June 2008. (Both for Toronto and the surrounding GTA) 

Average House Prices Chart

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Low Mortgage Rates are turning Renters into Buyers - But Be Safe and Get a Pre-Approved Mortgage Rate.

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The housing market was driven greatly by first time home buyers who were taking advantage of the historic low interest rates and great affordability.   With low mortgage rates contributing to lower monthly payments the usual renters are opting to own.  

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First time buyers are encouraged to get a pre-approved mortgage rate, many banks will guarnatee a rate for as long as 120 days.  The 5 year mortgage rate jumped in the last 2 weeks by a quarter point.    For buyers that were pre-approved this will have little impact as they are secure in knowing their rate was guaranteed.    Even if you are not sure you are ready to buy, a pre-approved mortgage is free and does not obligate you to buy.   Our in-house mortgage brokers do pre-approvals in our office daily.   We want to ensure our buyers are safe from any sudden increase in bank rates while they are shopping for a home. 

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How Long Did It Take to Sell a House in May?  Average Days On Market

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According to the Toronto Real Estate Board the average days on market for the month of May was 35 days, that’s still slightly up from the 31 days of last May.   Keep in mind these are average statistics.   When reviewing some of the hot neighbourhoods, you can typically find sellers will not entertain offers until the house had been exposed on the market for a number of days.  

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Realistically these houses could have sold within 24 hours, but the sellers wanted to ensure all potential buyers had an opportunity to view the home, conduct home inspections in hopes of receiving multiple "firm" offers.   

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So if you find your dream home and are ready to place an offer - check the listing over carefully, in some cases you will see a notiation "offers to be presented at 7:00 p.m. a week from today".
It can be frustrating, but it can be a good opportunity for buyers to analyse the neighbourhood sales, conduct a throughout inspection of the home and review their offer with their solicitor first.    

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Households in the GTA, 905 and 416 area codes, have become more confident in purchasing a home over the past three months.   While it may be partly due to the low cost of borrowing, it may also be speculation that the overall economy has hit bottom and is starting to gain momentum.

If you looking for more detailed statistics for your neighbourhood just give us a call at 905-896-3333 or 416-896-3333 or email sutton@realtor.com for a complete pdf report on sales across the GTA.

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Visit us at www.SuttonRealty.com

Sutton Real Estate Offices in Toronto and GTA.

 

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