This post will be updated through the course of the year as it tracks real estate sales activity during 2015. TREB stands for Toronto Real Estate Board. The Toronto Real Estate Board represent the City of Toronto; the Regions of Halton, Peel, York, and Durham; plus South Simcoe County, and Orangeville.
TREB Affordability Indicator
The chart below shows how much of the average household income is used for carrying costs of an averaged price home.
The TREB Affordability Indicator is a key indicator to watch when trying to determine the direction and health of the real estate market. The lower the value the stronger the economy and real estate market, that is, the less of your income being consumed to service the costs of a home the more money a household will have for other things.
The above chart is one of my favourite tools to assess the real estate market in general as it takes into account the key areas of home ownership obligations. Household income, home purchase price and the total amount of mortgaged borrow, utility costs, property taxes, and interest rates are all key parts to the above chart. In its final form, this is a simple indicator but there are many parts that affect the end result.
Scenarios: An increase in prices, interest rates, and mortgage borrowed can increase the portion of income being used to service home ownership. An increase in household income can lower the % of household income being used to service the cost of home ownership. A fall in income and an increase in interest rates at the same time will increase the amount of a
Through the first
We are still on track to set record levels for sales volume and average price.
With the first quarter of 2015 complete, here is a video reviewing of key trends that emerged over the last 3 months and look ahead to what may happen going forward. Long term view is to expect interest rates to remain low and stable. With affordability in check and the Ontario economy expected to outperform expectations, we're forecasting sales by TREB Realtor to grow by the end of 2015. The new forecast is 97,000 sales through the MLS System. This should take average prices up, too. Both will
Sales activity by TREB members through the MLS System for Q1 2015 broken down by property type.
*SNLR= sales to new listing ratio. MOI= Months of Inventory (how long it will take to sell standing inventory). Average DOM=Average Days on Market for sold homes. Average SP/LP=Average sales price to list price ratio.
The Toronto Real Estate Board represents areas beyond the City of Toronto.
TREB's primary markets include:
“The minimum down-payment to buy is ONLY 5% of the purchase price.”
–Fact. Ask how