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NEWS FEBRUARY 2015
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  TORONTO, February 4 , 2015.Home sales reported by Greater Toronto Area REALTORS® were up by 6.1 % compared to the same period last year. The average selling price for transactions was up by 4.9% .


Average price by major home type.
  416 905
Detached $948,7 $648,2
Semi-Detached $667,2 $455,4
Townhouse $503,3 $421,9
Condo $382,5 $310,1
     

"Home price growth is forecast to continue in 2015. Lower borrowing costs will largely mitigate price
growth this year, which means affordability will remain in check. The strongest rates of price growth will
be experienced for low-rise home types, including singles, semis and town houses. However, robust enduser
demand for condo apartments will result in above-inflation price growth in the high-rise segment as
well.

     
  What is going on with pre-construction condo market in Toronto?

Urbancorp’s Kingsclub becomes second condo project in last few weeks to suddenly convert to rental apartments, leaving more than 181 preconstruction buyers out in the cold.

Buyers put in avarage 40K per unit back in 2011.

Basically buyers gave builder an interest-free loan for the last three years they would have done better if the money was in the bank.

Buying a pre-construction condo and then flipping it a few years later when it is finished, has been easy money. Things have changed.
     
  'Moderated' market by 2016?


Housing starts to slip on low oil values The CMHC said it expects housing starts to fall one per cent this year, to range between 154,000 and 201,000 units. In 2016, housing starts are expected between 148,000 units to 203,000 units across Canada. Ontario is expected to account for more than 63,000 of those starts through 2015, as a strengthening U.S. economy further benefits already strong GDP growth.

The CMHC expects the recent meteoric price growth experienced in many markets to slow over 2015 and 2016, particularly in the Prairie region, where low oil values will dampen the market. The average price across the country is forecast between $384,000 and $428,000 in 2015, and between $388,000 and $438,000 in 2016.
 
  Bank of Canada cut its benchmark interest rate by 0.25 per cent. You have oil to thank.


CMHC CEO says low rates won't put stress on overvalued housing market. Canada’s housing market may be “modestly overvalued,” according to the CEO of CMHC, but that’s no reason to fear a painful crash
“What the Bank of Canada was concerned about was weakening in the Canadian economy because of the effect of oil prices. They’re doing us a favour in making sure the economy is growing properly and that’s their job” .
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