Toronto Housing Market: What's the Latest? Plus..some tips.

There hasnt been an abundance to write about.

Market in Toronto continues to churn out listings slowly.

Homes that show well and in sweetspots are still seeing multiple bids.

Interestingly, there may be a bit of a ceiling these days on just how high buyers are willing to bid upwards. We all know bank appraisals are getting a good deal more stringent.

Also days on market in a number of areas has slowly been on the rise.

Is this the typical slowdown we see each summer? Or is this the sign of ano inflated market begining some degree of a correction.

Economists will argue yr over yr prices have not been rising in a bubble formation as the litmus test is comparing wage growth relative to inflation of housing prices and theyve been rising together thus far. And we always talk about Toronto as a world class city with affordable (on relative scale) prices.

We do collectively know that interest rates cant stay this low BUT when will they go up? US debt levels, strong loonie, Eurozone nightmares, not so hot economic growth, a weak second quarter and slowdown economies in developing nations dont exactly scream for heightened rates.

BUT...they did infact raise rates at many banks yesterday on fixed rate mortgages.

2 litmus tests you should know around financing your home:

1. When you buy..know that a 2 percent increase in rates on a 4 percent mortgage will increase payments by 50 percent. Make sure if you think rates are going in that direction that you are confident in 5 yrs or less when you renew, that you can afford this increase.

2. This is a barometer as to whether you should rent or buy. Some use this. Take the monthly rental payments for the year. Divide the price of the house by these payments. If the number is less then 15..theres ano arguement that it may make sense to own a house. If the number comes in 20 or above..it makes sense to rent.

I didnt make this up and frankly i dont know who to credit. If you dont like it..dont use it!

As always, send in your questions/concerns to my email and my best!

See my website @ http://www.TheSmithsBuyAhouse.com.

Michael Gruenstein MBA CSC Sales Representative Re/Max Realtron http://www.TheSmithsBuyAHouse.com http://www.PropertiesintheGTA.ca Blog: http://mgruenstein.blogspot.com O:416.782.8882 C:416.271.2066 mgruenstein@trebnet.com