August 2010 Market Udate

Greetings! We are continuing to see much slower sales than last year at this time and average prices, while still running above last year are showing much more moderate growth (+6% average increase). This varies widely by neighborhood.  In most neighborhoods, prices are lower than last month which is a normal occurrence for this time of year. Inventory levels are significantly reduced, giving buyers a poorer selection from which to choose.    The general expectation is that we will see a seasonal increase in market activity this fall, but that the general trend that we have been watching for the past few months will continue. There is no real consensus among the ‘experts’ who normally try to predict market trends as this is a very confusing time, not only in Toronto, but globally.  My personal observation is that there are still a lot of buyers out there, but they are as confused as anyone and are waiting to find the perfect house.  This actually a very good time to be buying if you do find a home that suits you, as there usually is not much competition and you may be able to negotiate a bit on price. Interest rates are up slightly but still very affordable. There should be no reason not to buy.    The details by type of home and area are shown below.  Greater Toronto REALTORS® reported 6,564 sales in July – a 34 per cent dip from the record 9,967 sales reported in July 2009. New listings, at 10,825, dropped to the lowest level for the month of July since 2002.“The level of July sales remained below the expected long-term trend. The market has become more balanced following record monthly sales through most of the winter and early spring,” said Toronto Real Estate Board (TREB) President Bill Johnston. Total sales through the first seven months of 2010 were up by 12 per cent compared to the same period in 2009. Notwithstanding the fact that price trends vary at the neighborhood level in GTA, the average price for July transactions was $420,482, representing a six per cent increase over July 2009.Over the first seven months of 2010, the average selling price was up 12 per cent annually to $432,253.  See Summary Of July Sales And Average Price Below:  Housing Market Price Trends by Type of Dwelling and Area – Total GTA Detached Feb‘10 Mar’10 Apr’10 May’10 June’10 July’10 Average Price $453,000 $541,535 $542,348 $550,739 $543,884 $518,453 % chge vs Yr Ago +22% +24% +14% +13% +10% +6%   Semi-detached Feb‘10 Mar’10 Apr’10 May’10 June’10 July’10 Average Price $367,000 $396,825 $412,602 $411,002 $404,500 $389,296 % chge vs   Yr Ago +22% +14 +19% +12% +9% +9%   Condos Feb‘10 Mar’10 Apr’10 May’10 June’10 July’10 Average Price $285,000 $304,930 $307,770 $315,775 $308.034 $308,562 % chge vs   Yr Ago +12% +17% +13% +18 +8% +9% In This Issue... Neighborhood Trends Give Yourself Some Credit First Aid Kit Checklist Grilled Portobello & Goat’s Cheese Neighborhood Trends    District  Area Avge Selling Price       June 2010 %chge June’10 vs June’09  Avge Selling Price       July 2010 %chge July’10 vs July’09  Total GTA   $435,034 +8%  $420,482 +6% C01 Downtown $412,104 +14% $403,022 +13% C02 Annex/Bloor W, etc $735,240 -9% $791.388 +28% C03 Midtown $945,079 +8% $645,686 -6% C04 North Toronto $831,390 +9% $727,287 -7% C06 Dublin Heights/Willowdale $586,538 +20% $538,595 +22% C08 Cabbagetown/Downtown $395,070 +4% $383,533 +7% C09 Rosedale $1,160,217 +39% $813,555 -17% C10 Davisville/ L. Park $678,281 -1% $708,351 -5% C11 Leaside/Old East York $499,350 -10% $715,228 +46% C12 Bayview/York Mills $1,345,786 +12% $1,335,170 -6% E01 Riverdale/Leslieville $476,635 -1% $442,875 -4% E02 The Beach/Leslieville $584,738 +9% $651,635 +26% E03 Danforth/East York $400,888 -3% $380,257 +/-0% Condo Sales     C01 Downtown Core $378,489 +11% $381,045 +14% C08 St Lawrence/Downtown $365,609 +6% $351,968 +6% C07-14 Yonge Sheppard $342,506 +13% $334,916 +8% C15 Bayview Sheppard $343,703 +8% $284,711 -3% Source: Toronto MLS                                                                                                                                                                                                           Give Yourself Some Credit  The home of your dreams has finally hit the market!  You figure it’ll be easy to get a mortgage but if your credit's not in great shape, your dream home may just remain a dream. It's important to check your credit score in advance.  A solid credit rating makes you more attractive to financial institutions which means you'll enjoy better rates and terms that over time can save you thousands.  Here are a few things to consider: Clean It Up - If there's a blemish or two on your report, try to sort it out before it's too late. Consistency - Lenders look for a long track record of consistent payments.  Time is the only thing that'll help you here so get started today! Payment History - It may not be a big deal if you’ve missed the odd bill but if you’re consistently late with your payments, it’ll raise a red flag. How Much You Owe - Lenders don’t want to give money to someone with a whack of financial obligations so the less you owe the better.  Try to pay off your smaller debts. Credit Balance - It’s important to show you’re responsible.  If you carry a balance, it's best to not exceed half your limit.  Don't continuously max out your cards. Number of Applications - The number of times you’ve applied for credit can affect your rating.  Don't apply for credit unless you plan on using it. Knowledge is power so find out where you stand ahead of time, even if you think your score's perfect.  If you know your credit's in need of repair, start fixing it right away. A good credit rating will entitle you to preferred rates which can amount to thousands in interest savings.  For more advice on perfecting your credit, please don't hesitate to get in touch -- I'm here to help. First Aid Kit Checklist  Having a well stocked first aid kit in your home and car could mean the difference between life and death.  Keep it in a safe location that’s known to family members and babysitters but away from young children and replace missing items right away.  Your first aid kit should include: a first aid manual an assortment of bandages sterile roller bandages sterile gauze pads cleansing agent/soap moistened towelettes latex gloves sunscreen safety pins an epipen scissors tweezers needles antiseptic thermometer aspirin, antacid, antihistamine, etc. Make sure to review the first aid manual so you’ll know how to use the contents of your kit should the time come.  It's also a great idea to take a first aid course so you’re prepared for emergencies.  It's a good feeling to know you have the skills to help others in distress.