The home prices in Toronto continue to recover, with the average selling price of $943,710, setting a new record for the month of July. According to the Toronto Regional Real Estate Board (TRREB), that means a 16.9% increase compared to last year. Regarding home sales in the GTA, there was an increase of 29.5% in July in comparison with last year, and also up 49.5% compared to June 2020. TRREB pointed out that the competition among buyers increased during the month, and as a result, the acceleration in price growth.
According to the Greater Vancouver Real Estate Board, home prices in Vancouver increased 4.5 year-over-year to $1,031,400, because of the increased number of new buyers that were encouraged to purchase by low interest rates. Compared to June, home sales increased 28%, since COVID-19 restrictions were lifted and more buyers started to show up.
New record lows for 10-year rate mortgages and condo sales decrease
Mortgages with 10 years and up are usually not very popular, but with new rates as low as 2.59%, these types of mortgages are starting to get more attention. Tangerine Financial revealed last week a 2.59% 10-year fixed rate for purchases, transfers and refinances. In the market, there are also fixed-rate terms that are available for under 2%.
According to Urbanation Inc. reports, the new condo sales in the GTA dropped 85% in the second quarter of 2020, compared to the same period in 2019. According to Condominium Market Survey, only six projects and 1,176 units were launched for pre-sale during the second quarter, compared to 2019, where 40 projects and 11,415 units were launched.
However, the average selling prices for the new condo projects in development across the GTA averaged a record-high $867 per square foot. It increased from $864 psf in Q1 2020 and kept rising 8% year-over-year, reflecting broad-based increases in selling prices.
The condo market in GTA showed resiliency in the second quarter of 2020, considering the lower-than normal activity. The second half of 2020 will be determinant regarding the 14,000 new units that are scheduled to be completed in the next months.
Spousal buyout
People usually prepare themselves ahead for unusual situations in life, but separation and divorce are usually not one of them. The end of a relationship can represent a significant impact on your residence planning, which is usually your most considerable asset.
However, terminating a relationship doesn’t necessary mean that you will have to sell your home. There are some mortgage products in the market that allow you to buy out the other party, while you are still able to stay in your home. Lenders will most likely require a separation or divorce agreement for this approach.
Anyone going trough this scenario should contact a mortgage broker. A mortgage broker will be able to help you navigate the process and discuss available options that fits your situation.
If you are looking to refinance or purchase a home over the next few months, contact us today at 877-296-2696 or email us at info@homemortgageadvice.ca.