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NEWS JANUARY 2014
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  TORONTO, January 6, 2014 Greater Toronto Area (GTA) REALTORS® reported 4,078 residential transactions through the TorontoMLS system in December 2013. This represented a almost 14% increase compared to sales in December 2012.
New listings entered into the TorontoMLS system were down by almost 4% over the same period.
Total sales for calendar year 2013, at 87,111, were up by approximately two per cent compared to 85,496 transactions in calendar year 2012
The
average selling price for December 2013 up by 8.9%.
“The average selling price will be up again in 2014 and by more than the rate of inflation. The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
     
  Real estate boom continues - The only way is up for prices
2014 is looking to be a good year for investors with price appreciation expected to rise once again. The national average home price is expected to rise by 5.2%.
But forget all those fears about a housing bubble that’s about to burst, says Helmut Pastrick, chief economist of Central 1 Credit Union. He expects Toronto resale house prices to continue to climb by a more modest, but still healthy, 4 to 5 per cent through 2016 and double over the next 25 years fuelled by a shortage of land for new development and rising population levels.
“Today’s record high prices will seem inexpensive in 25 years.” But affordability will become a worsening problem, he warned. Toronto price gains “temporarily rise” to as much as 7 per cent, year over year, in early 2014, says Amna Asaf of Capital Economics.
 
  Canadian mortgage market predictions for 2014

New mortgage rules. Expect more rule tightening in 2014 designed to reduce mortgage risk for lenders, mortgage default insurers and the government. By definition, those rules will make it slightly harder to get approved for some mortgages and further slow the housing market.
Credit unions will steal market share. Since they’re provincially regulated, credit unions have more flexible lending guidelines than federally regulated banks. They’ll use that to their advantage in addition to marketing more heavily, both online and to mortgage brokers.
Stronger online players. A new breed of online mortgage broker is sacrificing commissions for volume, and selling cut-rate mortgages. This trend will heat up competition industrywide, delivering greater mortgage discounts to all consumers. .
Consumer IQs will increase. For those in the mortgage industry who prefer an uninformed consumer, your days are numbered. Canadians will spend more time researching rate comparison websites, online mortgage forums, news portals, blogs, calculators and other online mortgage tools. They’ll become increasingly savvy about fine print like penalty calculations, rate blend policies and refinance restrictions.
 
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