February record sales activity jumps 74 per cent in Toronto
The Greater Toronto Realtors reported a 74 per cent increase in sales for the first two weeks of February compared to last year, when the recession hit hardest.
There were 3,555 sales through MLS during the first half of this month, compared to 2,0044 during the same period in 2009. This month's activity was even 7.7 per cent higher than the previous record in 2006.
"Home ownership demand remains strong in the GTA, as households remain confident that economic recovery is at hand and that ownership housing will continue to be a quality long-term investment," says Tom Lebour, president of the Toronto Real Estate Board.
Accordingly, the increased activity has led to higher prices as well. The average price for February mid-month transactions was $429,997, up 18 per cent from 2009. That's also drawn more sellers out hoping to cash in. New listings with the Toronto Real Estate Board's boundaries were up 15 per cent to 6,212.
The board's senior market analyst Jason Mercer says double-digit price increases wil continue through the first quarter of the year.
"However, as new listings continue to increase, creating a better supplied market, we will see the annual rate of price growth moderate into the single digits," says Mercer.U.S. mortgage delinquencies remain at record levels
One in 10 borrowers is seriously delinquent on their U.S. mortgage, with their payments at least 90 days past due or in foreclosure. That compares to one in 16 borrowers a year ago and one in 33 two years ago, according to the Mortgage Bankers Association.
The U.S. Treasury Department last week issued figures showing that under the Home Affordable Modification Program, the number of permanent loan modifications has increased to 116,000. In Las Vegas last week, President Barack Obama has announced plans to provide $1.5 billion to the five states hit hardest by foreclosures.
California, Arizona, Florida, Michigan and Nevada will split the allocation based on need, and administered by the state Housing Finance Agencies. The Mortgage Bankers Association says 17 per cent of all loans in California are past due, for example.
Some in the mortgage industry had hoped for more additional broad measures, however.
"The industry's own figures attest to the fact that the damage from the bad lending that's brought down the economy continues virtually unchecked," says Michael Calhoun, president of the Center for Responsible Lending. "We hope Congress will keep these figures in mind and agree that American families deserve a fair shake on their finances, including more aggressive foreclosure prevention and a strong watchdog to prevent another lending debacle in the future."
