Market Watch - March 2009

Buyers rejoice...Sellers join the party

GTA Average Home Prices Down...GTA Median Home Prices Down...Mortgage Interests At Historical Low..

In keeping with rest of the country, Greater Toronto Area (GTA) real estate sales are also down compared to 2008. Even with the downturn, there is some good news for Buyers...and possibly Sellers. Here are some key points to note:

1. Average Home Price in GTA
Feb 2008: $382, 048
Feb2009: $361, 305
- Change of almost $21, 000 in one year resulting in GTA homes becoming much more affordable with lower prices than 2008

2. Median Home Price in GTA
Feb 2008: $324, 000
Feb 2009: $312, 900
- Change of over $11, 000 in one year resulting in more houses being available in lower price range than 2008

3. Mortgage Rates
Spring 2008: 5 year fixed @ 5.80% (approx)
Feb 2009: 5 year fixed @ 4.00% (approx)
- Change of almost 1.80% in one year results in lower monthly payments increasing home affordability. e.g. $250, 000 mortgage:
@ 5.80% would have monthly payment of approx $1570
@ 4.00% would have monthly payment of approx $1315
@ 4.00% would have monthly payment of approx $1102 with 35 year amortization
- That represents savings of approx $255 to $470 per month

Sellers can also take advantage of market conditions if upgrading their home. Sellers' current home might not fetch the 2008 prices but their next home will also be that much more affordable to buy and finance. For the same reasons, Sellers' current home has also become that much more affordable for the potential Buyer.

Great selection of affordable homes, record low mortgage rates, optional longer amortization periods, and various programs (Genworth, CHMC) can make YOUR dream home come true...sooner.

Source: Toronto Real Estate Board, Market Focus Feb 09