Etobicoke Real Estate

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What Happened In Real Estate Last Year And What Can We Expect in 2019

As a follow-up to our January newsletter “Should You Buy or Sell in 2019”, we have the latest Toronto Real Estate Board statistics for monthly sales in Toronto and a look forward on interest rates for 2019.

Here’s a look by-month for the average Detached Home SOLD PRICE in 2018.  The chart below shows us that the market stayed steady and moved to look more seasonal. Activity and price dipped a little in August (Summer Holiday time) and December (Christmas and New Year Holiday Season time).  This seasonal shift from 2016/17 shows up more precisely when you look at DOM (Days On Market). 


Significant when looking at real estate in Toronto, is the Condominium Apartment market.  Here’s a look by-market in the same format as above. The charts below show us that the Condo Apt market continued on an upswing.  It too, shows a seasonal pattern.  In looking at the DOM (Days On Market) for Condo’s there was a general increase since the Spring. This could be interpreted as the rise in average price is causing slowdown in the volume of sales.  Newbuilds in condos have also sucked up re-selling volume.  We have talked to some builders who tell us that new future big projects have been put on hold.  The developers have made lots of money on their investments over the past few years and will sit while the condo market levels out.  This is good news for re-selling.  It will be interesting to watch how the average price reacts to this.


Given that in 2018 we saw a significant number of interest rate increases and the implementation of the stress test, the reaction in the market has been very healthy.  We note thatlast week, the Bank of Canada held rates. Canada's annual inflation rate in December firmed to 2.0 percent from 1.7 percent in November, on the back of rising air transportation and telephone service costs which offset lower energy prices, Statistics Canada said on Friday. But the stronger-than-expected inflation reading was unlikely to encourage Bank of Canada to immediately raise interest rates, economists said. "There is no urgency whatsoever for the Bank to move," Doug Porter, chief economist at BMO Capital Markets said. "We’ve been looking for two rate hikes later this year, and I stress the word 'later'. We’ve got them going in July and December."

Lower Rates Coming in 2019?

Royal Bank of Canada has become the first of the major banks to lower its posted interest rate for five-year fixed-term mortgages, a move that has been widely anticipated amid tumbling bond yields. The bank lowered its featured five-year mortgage rate on Wednesday to 3.74 per cent from 3.89 per cent. Other big banks did not immediately match the rate, but mortgage expert Robert McLister, founder of mortgage-rate comparison website, said others will move soon. He said alternative lenders who compete with the big banks have already been lowering their rates for weeks, giving them a slight advantage in the market. Mr. McLister anticipates the major banks will settle their featured five-year fixed rates at about 3.64 per cent in coming days. He said some big banks have already lowered their internal “discretionary” rates on five-year fixed terms for preferred clients, but RBC is the first big bank to lower its publicly posted rate since August last year.

Listening and watching media for real estate news is generally out of step with the current market. It’s not fake news but it’s most probably, ‘old’ news.  We are happy to discuss what is happening ‘now’ in any neighbourhood you have interest in. We are excited about 2019.  It is nice to see a more predictable market.


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