Real Estate Newsletter

Real Estate News:


July 6, 2010 -- Greater Toronto REALTORS® reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.

"We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year," said Toronto Real Estate Board President Bill Johnston. "The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates."

The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.

"With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The annual rate of average price growth in the second half of 2010 will be in the single digits."

Median Price

In June, the median price was $367,750, from the $345,000 recorded during June of 2009.

Feature Listings

48 Eton St. Markham ON (Kennedy & Hwy 7) – listing at $649,900

Spectacular quality built home by “Chiavatti” located at the heart of Unionville, on a large premium 70x105 foot lot. Approximately 3000 Sf. With 4 bedrooms, 3 washrooms, double door entrance, open circular oak stair, and a big list of recently updates.

See more at - http://kevin-yip.blogspot.com/p/48-eton-st-best-location-in-unionville.html

16 Yonge St. Toronto (Yonge & Lakeshore) – listing at $444,900

Fantastic corner unit with spectacular views in the heart of Toronto’s financial district. Across from Air Canada Center. Excellent layout with hardwood floors in living, dining and den. The unit is approximately 850 Sf with 2 bedrooms, 2 washrooms, and 1 den.

See more at - http://kevin-yip.blogspot.com/p/18-yonge-st-heart-of-toronto.html

Real Estate Topic: Understanding Your Mortgage Options

To help people make an informed decision, Canada Mortgage and Housing Corp. (CMHC) offers the following answers to some of the most common questions Canadians have about choosing a mortgage:

What is the difference between conventional and high ratio mortgage?

A conventional mortgage is a mortgage loan up to a maximum of 80 percent of the lending value of the property. This means that the homebuyer has made a down payment of at least 20 percent of the purchase price or market value of the home. If your down payment is less than 20 percent of the purchase price, however, you will typically need a high ratio mortgage. A high ratio mortgage is a mortgage loan which is higher than 80 percent of the lending value of the property up to a maximum of 95 percent. High ratio mortgages normally have to be insured (by CMHC, for example) against payment default

What are fixed, variable or adjustable interest rates?

When you choose a mortgage, you have to decide whether you want the interest rate to be fixed, variable or adjustable. A fixed rate is locked-in for the entire term of the mortgage. With a variable rate, the payments remain the same each month, but the interest rate fluctuates based on market conditions. For adjustable rate mortgages, both the interest rate and the mortgage payments vary based on market conditions. Talk to your mortgage professional to find out which option is right for you and be sure to evaluate the impact of an increasing interest rate on your monthly payment.

Should I choose an open or closed mortgage?

With a closed mortgage, you pay the same amount each month for the entire term of the mortgage. Some flexibility to repay principal through lump-sum payments is allowed. Closed mortgages can be good choice if you want a fixed payment schedule, and you don’t plan on moving or refinancing before the end of the term. An open mortgage allows you to make a lump-sum payment any time. This type of mortgage can be paid off prior to maturity without penalty. An open mortgage can be a good choice if you’re planning to sell your home in the near future, or if you’re planning flexibility to make large lump-sum payments. An open mortgage generally carries a higher interest rate.

What about the term, amortization and payment schedule?

The term is the length of time (usually from six to 10 years) that the interest rate and other conditions of your mortgage will be in effect. Amortization is the period of time (most first-time homebuyers choose 25 year amortization) over which your entire mortgage- usually either monthly, bi-weekly, or weekly. Accelerated payments are also an option. There are available for weekly and bi-weekly payment schedules and are generally equivalent to one extra monthly payment per year. With accelerated payments, the homeowner is able to pay off his/her mortgage faster while decreasing the overall interest cost.