While some of us are investing time to summer vacation, our market snapshot shows that regardless of price increases, policies changes, and a slight inventory influx, buyers are still well invested in Toronto’s real estate.
What’s Happening in July 2017? Interest Rate Increases.
The newest real estate development is brought to us from The Bank of Canada. After 7 years of steady interest rates, July marks two different interest rate hikes on mortgages.
- Prime rate went up .25%. This increase affects variable rate mortgages and could translate into at $13/month increase per $100,000 borrowed.
Ex. On $500,000 variable rate mortgage, this would be $65/month increase.
- Fixed rates have also increased across the board. Short and Long term rates are now up to .5% higher. However, the good news is there are still promotional rates that exist. So if you are looking to buy in the next few months it would be best to speak with a reputable mortgage broker to see what options are available to you.
So what does this mean for homeowners? Simply put, an increase in mortgage payments. But don’t let this increase scare you! In the grand scheme of things, we still have reasonably low borrowing rates compared to what we’ve seen in the past.
June 2017 vs June 2016
Below are three infographics showcasing the sales activity of detached homes, semi homes, and condos in the last year. What’s the big difference?
- Condo prices have jumped over 24%! There has been huge demand in this sector
- Average sales price of detached homes went up just over $35,000 (+1.92%)
- Average sales price of semi detached rowhouse raised over $63,000 (+6.03%)
Overall, we saw some very reasonable increases which is great! These numbers are also more representative of the central Toronto market as a whole vs. all of the Toronto Real Estate Board.
So is the market cooling or is summer just heating things up?
Scroll down to find out and compare sales activity of detached homes, semi homes, and condos in the last year.