Thursday, November 25, 2010

Median house price multiples in Toronto, Montreal and Vancouver

These are very interesting statistics just sent to me from my friend Ben.

According to Demographia, the Median Multiple has been remarkably similar among the nations surveyed, with median house prices being generally 3.0 or less times median household incomes.

In late 2009, Calgary and Montreal were rated "seriously unaffordable", scoring 4.6 and 4.9 respectively.

Toronto made it to the "severely unaffordable" hall of fame with a score of 5.2.

Vancouver ranked the most unaffordable city amongst the 272 markets surveyed with a price-to-income ratio of 9.3 (Exhibit 4.1).

And the price of a home relative to rental income in Canada is amongst the highest in the developed world.

Not good.

In 2006, Fed chairman Ben Bernanke testified in front of Congress that he didn't think housing prices were overpriced.

He doubted that home prices would fall much since home prices had not fallen for 60 years.

As we now know, that reasoning was an enormous logical fallacy.

--"Toro", "Canadian Housing Bubble", RunningOfTheBulls.Typepad.com, August 29, 2010.

Hi Ben,

Very interesting statistics. Yes, the ratio of income to house price is often a measure of how over inflated the prices can be and as you have pointed out, our ratio's are very high. Many say that this is sustainable because of low interest rates, but if the rates increase dramatically, look out! I believe we will have low rates for at least another 5 to maybe 10 years, this is the only way the economy will not fall in upon itself.

Bernanke's remarks that house prices will not fall because they have not fallen in 60 years is really absurd!

Thanks for the great stats!
Mark

Friday, November 19, 2010

Mortgage interest rate update Fixed rates on the rise

Good morning,

Fix rates are rising. It is time to lock the fixed rate now. They are so low, but won't last long.

Best rates for real fully qualified mortgage placements:

5-year fixed: 3.29%
3-year fixed: 2.79%

For pre-approval rate hold, you can get as low as 3.49%, which can be held for 120 days.

This special won't last long, so act soon to lock it in.

Best variable rates are as:

5-year variable: P-0.75% (currently at 2.25%)
3-year variable: P-0.90% (currently at 2.10%)


I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Thursday, November 18, 2010

Mid November 2010 sales down but prices up for GTA Resale Housing Market Figures

Sales figures for mid month are in. Comparing November 2010 to November 2009 the number of sales is down about 16% Year to date sales are up slightly.

Average price for November 2010 is $437,554 which is about 5% HIGHER than same period in 2009

The full article is below...


GTA REALTORS(r) Report Mid-Month Resale Housing Market Figures

TORONTO, November 16, 2010 -- Greater Toronto REALTORS(r) reported 3,076 sales through the Multiple Listing Service(r) (MLS(r)) during the first two weeks of November 2010.

This represented a 16 per cent decrease compared to the 3,666 sales recorded during the same period in November 2009. Year-to-date sales amounted to 78,526 - up slightly from the 2009 total.

"The number of transactions remained high relative to new listings through the first half of November, promoting a healthy rate of price growth compared to last year," said Toronto Real Estate Board President Bill Johnston.

The average price for November mid-month transactions was $437,554 - up more than five per cent compared to the average of $415,066 recorded during the first 14 days of November 2009.

"Mortgage payments on the average priced home remain affordable in the GTA based.

This is why the average selling price continues to increase," said Jason Mercer, TREB's Senior Manager of Market Analysis.


I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Saturday, November 13, 2010

RE: Information Request

I received a question from Steve that my readers frequently ask:

Hi Mark

So if the market does not crash how are people going to pay for homes ?

Should the prices keep rising..... Already most are paying 60% of there income towards their home, how can this continue?

Steve



Hi Steve,

Thanks for your comments.

People have been saying "How are people going to pay for homes ?" since the mid 80's There are always people who can afford more expensive homes. As long as the economy stays healthy and people are employed, then real estate will continue to get more expensive over time.

60% house payments/income is too high. That's house poor. People have to realize this is too high and puts too much pressure on their lives. They have to settle for less, move out from the expensive core area and commute.

What do you think?

Mark

Friday, November 12, 2010

Current posted and achievable Mortgage Interest Rates

This table shows the Current posted and achievable Mortgage Interest Rates

TERM POSTED Achievable RATE*
6 Month 4.45% 3.75%
1 Year 3.20% 2.40%
2 Year 3.45% 2.99%
3 Year 4.00% 2.90%
4 Year 4.94% 3.39%
5 Year 5.19% 3.39%
7 Year 6.09% 4.60%
10 Year 6.40% 4.95%
Variable Rate 2.30%
Prime Rate 3.00%
*

Rates may vary and are subject to change without notice OAC.
Rates Last Updated: Thursday, November 11, 2010

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

TD Bank announces their Economic News for November 2010

Below is the press release for TD bank for their November outlook.


Moderation seems to be a common thread in their announcement.

Enjoy!
Mark

November 4, 2010

TD Economics

Data Release: Small Business Confidence Perks Up In October

* The CFIB's small and mid-sized enterprise confidence index rose from 63.6 in September to 66.9 in

October. This is its highest level since May 2010 and marks the end of a 4-month string of declines.

* British Columbia, Ontario, and Alberta were the main drivers of this month's increase, with confidence in

those provinces rising by 10.0%, 9.8%, and 9.1%, respectively.

* On an industry basis, 11 of 13 industries recorded better confidence in October. In particular, the

construction and resources sectors drove the headline index, with confidence improving by 20.1% and 14.8%, respectively. Adding to that were an 8.4% increase in arts, recreation & information services, and a 9.8% improvement in professional & business services sectors.

* There was an improvement in capital spending intentions, specifically in computers, communication, and office technology, which have increased by more than 13% in the last two
months. Hiring intentions have also improved marginally, which is likely due to the declining share of small and mid-sized businesses complaining of insufficient domestic demand.

Key Implications

* Today's report was a welcome addition after four straight months of declines in business confidence.

* At the same time, however, the fact that the headline index has been relatively trendless so far this year reflects that businesses are continuing to see improvements in demand, but only moderate. This is consistent with TD Economics' forecast for lukewarm 1.5-2% growth in the second half of 2010.

* The fact that businesses are becoming more optimistic regarding capital spending provides some additional support for our expectation of continued strength in machinery & equipment investment. After rising by 30% on an annualized basis, M&E is likely to be a major contributor to growth in the coming quarters.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Tuesday, November 09, 2010

GTA real estate market is healthy

This is the latest report from TREB for last month. It shows that the current GTA Real Estate Market is healthy.

October Price Growth Reflects Healthy Housing Market Conditions

November 3, 2010 -- Greater Toronto REALTORS(r) reported 6,681 sales through the Multiple Listing Service(r) (MLS(r)) in October 2010. This represented a 21 per cent decrease compared to the 8,476 sales recorded in October 2009.

Through the first ten months of the year, sales amounted to 75,582 - up one per cent compared to the January through October period in 2009.

"The annual change in sales and average selling prices has been quite uniform across the GTA and by property type as the market has balanced out from record levels of sales in the second half of 2009 and first few months of 2010," said Toronto Real Estate Board (TREB) President Bill Johnston.

"The composition of GTA home sales does differ depending on location.

Condominium apartments accounted for 42 per cent of total sales in the City of Toronto and almost 60 per cent of sales in TREB's central districts," Johnston continued. "In regions surrounding the City of Toronto, in contrast, low rise home types accounted for almost 90 per cent of transactions."

The average price for October transactions was $443,729 - up five per cent compared to the average of $423,559 reported in October 2009. The average selling price through the first nine months of the year was $430,802.

"The average selling price in the GTA has continued to grow relative to 2009 because home ownership has remained affordable," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home."

"The outlook for mortgage rates and income growth over the next year is favorable. The average home selling price could increase moderately next year and remain affordable for the average GTA household," continued Mercer.

Median Price
In October, the median price was $366,000, from the $357,000 recorded during October of 2009.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Monday, November 01, 2010

Current mortgage interest rates in Toronto area

The table below shows the current mortgage interest rates in Toronto area,
posted and attainable rates.


Terms Posted Rates Attainable Rates
6 MONTHS 4.45% 3.95%
1 YEAR 3.20% 2.44%
2 YEARS 3.45% 2.69%
3 YEARS 4.00% 3.04%
4 YEARS 4.94% 3.49%
5 YEARS 5.29% 3.59%
7 YEARS 6.09% 4.75%
10 YEARS 6.40% 5.15%
Rates are subject to change without notice. *OAC E&OE

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* If you have not already signed up to receive my monthly real estate
newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm