Rajeev Narula

Below is the latest press release from Toronto Real Esate Board for the 1st half of March 2010. Where is the market headed?

recently, the Federal Government announced some changes to the mortgage rules. My feel is that these rules will lead to a short term (but above average) increase in house prices in the GTA. The increased pressure on the price will stay on until about beginning of July. Then there would be a steep adjustment in house prices. Firstly, due to mortgage rules, and then due to imposition of Harmonized Sales tax that will increase the tax on services related to purchase of homes.

Toronto / Greater Toronto Area Mid-March Sales Data...What does it show?

GTA REALTORS® REPORTING MARCH MID-MONTH HOUSING STATISTICS

TORONTO, MARCH 17, 2010- Greater Toronto REALTORS® reported 4,353 sales through the Multiple Listing Service® (MLS®) during the first two weeks of March.

This represented a 70 per cent increase compared to the 2,562 sales recorded during the same period in 2009 when resale transactions had dipped markedly due to the recession. The mid-month sales total was also 16 per cent higher than the previous March mid-month high reached in 2006.

"The spring-like weather in the first half of March brought the first green sprouts of the recurring spring market. Every year, monthly sales climb steadily through May," said Toronto Real Estate Board President Tom Lebour. "People are buying homes because they are confident in the current economic recovery and mortgage payments on the average priced home remain affordable."

The average price for March mid-month transactions was $440,153 - a 20 per cent increase over 2009. New listings within the Toronto Real Estate Board boundaries were up 34 per cent to 8,540.

"Look for double-digit annual price increases to cease later in 2010, as new listings rebound from the low levels experienced in 2009," said Jason Mercer, TREB's Senior

Manager of Market Analysis. "Increased listings will give buyers more choice, resulting in less upward pressure on home prices."

GTA market is a Seller's Market.

This is no longer a BREAKING NEWS!

Greater Toronto Market area, more so the areas of Mississauga, Brampton, Milton, Oakville and Vaughan are experiencing shortages in decent listings. If you are planning to sell and have been holding back, here is a warning. The market will cool down as soon as the mortgage rates start to creep up...which is very likely. Once the banks have exhausted the extra money they are sitting on by offering lower rates, the rates will go up....and the motivation of Buyers will drop!

So son't wait longer! Traditionally, Fall is good to sell your poroperty. This is the best time to sell if you are planning to move up to a bigger or luxorious segement housing.

I have clients looking for homes in East Brampton, Mississauga & Etobicoke (Toronto).

Please call me for a no obligation HOME EVALUATION.

Please remember, Home evaluation is not FREE. I only don't charge you for it!(TM)

Rajeev Narula

Broker, REALTOR(R)

RE/MAX Realty Specialists Inc., Brokerage

www.RAJEEV.ca

Bus: 905-272-3434

Mob: 416-648-6144

After staying over a year for over the prime, the Variable rate dropped less tha prime for the first time yesterday. There has been a significant drop in mortgage rates in the past week even for fixed rate mortgages.

The low variable rates however come with a catch. They are for short closings of less than 60 days and come with reduced pre-payment previleges. For someone who is not going to pay-down sooner, these will be perfect.

No wonder, the real estate sales keep going higher and higher everyday in the GTA.

Fir best mortgage rates, check my website www.rajeev.ca or send me an email at rajeev_narula@centum.ca or contact@rajeev.ca

According to the 2009 Third Quarter CMHC Housing Market Outlook released on September 3, 2009 by Canadian Mortgage & Housing Corporation, stable economic conditions across the province of Ontario will help stabilize housing demand in 2010.

Highlights of the Ontario forecast include:

• The Ontario economy will stabilize at year end before gradually recovering in 2010

• Ontario resale volumes will stabilize and range between 160,000 and 190,000 unit sales this year and next - reaching 174,000 units in 2009, and 166,750 units in 2010.

• Resale volumes will be down from the peak in 2007 but will be in line with volumes earlier this decade.

• After experiencing buyers market conditions early this year, balanced market conditions will be sustained through 2010 - prices will rise by 1.6 per cent and 0.8 per cent this year and next respectively.

• After declining in 2009, new home starts will edge up and reach 50,000 units in 2010 but owing to economic uncertainty will range between 45,800 and 60,000.

• High levels of affordability will support demand for detached housing in the immediate term but a shift to more inexpensive multi-family housing will occur as affordability erodes in late 2010.

(Sourced from CMHC website and OREA's Government Relations Publication for Ontario Realtors)

For unbaised real estate opinion and unmatched real estate services in the cities of Mississauga, Oakville, Brampton, Milton, Vaughan, Toronto and other Greater Toronto Area, call RAJEEV at 416-648-6144

September 2009 statistics for GTA were released today by TREB that show that there is no letting down in the number of sales and price increase is consistent with the growth. There is a tremendous gap in demand and supply and dearth of new listings is making the market hotter day by day.

After two months of continuous search, I was able to snatch a house for my client winning amultiple offer bid last month in Mississauga. I am still trying to find a home with accessory unit for another client in East Brampton, where similar homes are flying in a day. I am looking for 1 bedroom condo for another client in Kipling Subway area of Toronto (Tridel's NUVO complex) and the units are attracting multiple offers too.

I am loving this (and hating this too at the same time). Buyers who kept waiting for the prices to crash are now regretting.

To read the complete media release check this link