April ’07 was the busiest month in the history of the Toronto Real Estate Board, with 9,452 sales recorded. As active as the market is, and with quite a bit of attention being paid to ‘bidding wars’ and sale prices tens of thousands of dollars over asking, it’s interesting to note that the year-over-year price increase was just 3%. Buyers, watch for unusually low list prices: they’re usually pegged to generate competition! If it looks too good to be true, it probably is!
Interest Rates May Rise
Canada’s economy continues to steam ahead. Job creation is great, GDP growth is steady, housing permits are up, and interest rates are still low. However, concerns about rising inflation may lead to a Prime hike, which will likely lead to Mortgage rate hikes. Most borrowers can still get an interest rate around 5% – through a Mortgage Broker – but that probably won’t last long. If you’re in the market for either a new mortgage or a mortgage renewal, make sure you shop around! I work with 3 Mortage Broker companies. Call me if you would like a referral to speak with one of them about your options.