05 Jul What’s in store for the Canadian Housing Market?
Although stricter mortgage lending rules were expected to throw a wrench into Canada's hot housing market, home prices have remained stable, sales are expected to increase, and home construction is projected to gain even more momentum by the end of the year.
The market is still considered balanced.
Three out of five local markets had a sales-to-new listings ratio of between 40-60%, indicating a balanced market.
Home prices will remain affordable.
Home prices have levelled off due to tighter mortgage lending rules and consumers are cautious about taking on more debt. However, housing in 75% of Canada will remain affordable even in the event of a two-percentage point spike in mortgage interest rates.
What's the average price of a Home in Canada?
- Average national price of a Condo: $237,600
- Average national price of a Bungalow: $237,600
- Average national price of a Two-storey home: $410,600
There is a 6.6 month supply of homes for sale, indicating that we're in a transitioning market.
As for the Toronto market:
According to the Toronto Real Estate Board overall sales were down by 3.4% compared to May 2012 with the exception of single-detached homes which were up by almost one per cent compared to the same period last year. In the City of Toronto it was a 3% increase.
Relatively speaking within the Toronto real estate market there are just not as many homes available so as a result we have still seen many situations of multiple buyers wanting one particular house.
The average selling price for May 2013 was $542,174 – up by 5.4 per cent in comparison to $514,567 in May 2012. The average condominium apartment prices were also up slightly in comparison to last year.