Tuesday, September 28, 2010

RE: Graph - Average Price of Homes 1987 to Present



I received an email with good questions about the average price graphs and will post the question and my answer below.


Mark



_____


From: Ronald S.]
Sent: Wednesday, September 22, 2010 11:37 AM
To: mark@mississauga4sale.com
Subject: Graph - Average Price of Homes 1987 to Present


Hello Mark,

The information preceding the graph indicates that it relates to single family homes. Does that include condominiums? If so, is there a graph that excludes them? I understand that condominiums dropped more sharply than detached homes in the early 1990s, and it would be interesting to see that separately.

Regards,

Ron S.





Hello Ron,

Yes, single family includes condominiums, all housing types that are single family. See the housing types and breakdown for last month in the table below, as an example.

Let me see if I can find the data for the same period for only condominiums.




From what I have seen in the past, there will be no breakdown for only condos. Each area and district is broken down for each housing type, but it would be a monstrous task to go through each monthly issue for each year to gather the data for each area and then put them all together. I'll see what I can find out and get back to you if I find something.

Thank you for your comments and questions,
Mark







Monday, September 27, 2010

TREB west districts days on the market

this graph shows the TREB west districts days on the market and indicates
that compared to the last year it is taking slightly longer to sell a home
in the west districts of the GTA

Friday, September 24, 2010

Graph showing the TREB average prices over the past 10 years

This is a graph showing the TREB average prices over the past 10 years and
clearly indicates that prices have increased steadily for the past year
since 2000

Whether this trend continues or not is yet to be seen!
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thursday, September 23, 2010

TD Canada Trust Economic News comments

This is the latest news from TD Canada Trust


Provincial Retail Monitor


September 22, 2010

HIGHLIGHTS

* Canadian retail sales retreated by 0.1 per cent in July relative to a
month prior. This is in stark contrast with analyst expectations calling for
a M/M gain of 0.6 per cent.

July's performance comes on the heels of a slightly downwardly revised
growth of 0.0 per cent in June (from an initial estimate of 0.1 per cent).

* The weakness was not broad-based at the regional level, with 3 provinces,
namely British Columbia, Ontario and Nova Scotia, reporting declining sales.
The implementation

of the Harmonized Sales Tax (HST) in the former two provinces on July 1st
2010 as well as the 2 percentage point increase in the prevailing HST regime
in the latter province in

July served as major impediments to growth in retail sales.

* Nova Scotia recorded the largest decline at 5.3 per cent. This performance
follows the largest M/M gain recorded in June at 3.3 per cent. British
Columbia and Ontario

experienced M/M declines in sales of 0.4 and 0.3 per cent, respectively in
July.

* On the flipside, Canadian sales excluding British Columbia, Ontario and
Nova Scotia increased by 0.5 per cent. The most significant gain in sales
was observed in Manitoba

at 1.6 per cent, representing this province's third consecutive increase in
the indicator. Quebec experienced a gain in sales of 0.5 per cent after a
string of three consecutive

monthly decreases.

* Relative to July 2009, above-national gains in retail sales were recorded
in the provinces of British Columbia, Alberta and Manitoba. Sales gains in
British Columbia and Alberta come, however, on the heels of earlier
weakness. Sales remain 2.9 per cent and 8.6 per cent, respectively below the
level reached in September 2008 (i.e. the month during which retail sales
peaked at the national level).

* The regional concentration of retail sales declines suggests that HST
played an outsized role in this indicator's performance in July. Data for
provinces not impacted by the implementation or increase in the HST point a
better picture for retail sales at the onset of Q3.

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

Great letter of introduction and Information from a TD mortgage rep

I thought that this information was very detailed and showed that this
mortgage representative with Td Canada Trust was very thorough in their
approach to the business.

You may or may not agree.

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


Dear valued and prospective Customer,

I make every effort to provide my clients with qualified and up-to-date
financial advice. I believe that educating my clients throughout their
buying, selling, or re-financing experience helps them to not only make the
right decisions but to feel comfortable and secure in their financial
position. I also work directly with real estate professionals, builders, and
other centers of influence helping them serve their clients, and grow and
improve their businesses. I work with a number of professionals in various
areas of expertise that extend well beyond my direct specialization. Through
this, I am able to support my clients and business partners in connecting
them with the right and qualified people in different fields.

Buying a Home (First Home Buyers or Repeat Home Buyers) When yours client
thinking of buying a home, it's definitely worthwhile talking to a
professional Mortgage Specialist. TD Canada Trust is a leader in providing
competitive mortgage products along with exceptional service. This
combination of service and advice, together with my experience in the
financial services industry, allows your client to enjoy a comfortable
mortgage experience handled by a professional Mortgage Specialist.

As a Manager of Residential Mortgage in TD Bank, I can help your client to
understand how much mortgage he/she can control and to explore both
traditional and leading edge mortgage options that suit his/her individual
needs. We work with first time buyers and repeat buyers alike. If your
client finally found his/her dream home and are looking to obtain the
mortgage that's right for him/her, please talk to me before he/she move any
further.

Renewing his Mortgages he/she is looking to buy a house and willing to get a
mortgage, or he/she already have a house and looking to get home equity line
of credit, transfer his/her existing mortgage or refinance an existing
mortgage to consolidate his/her current debt, I can assist them in finding a
better mortgage solution to suit his/her needs and long-term financing
goals.

I believe when he/she try to renewing his mortgage, it's more than likely
that his/her current lending institution will offer them a rate that is NOT
the best for them. At this point he/she is in a strong bargaining position,
and by joining TD Bank he/she can obtain a rate and product that suits them
and his/her financial situation.

Refinancing Your Mortgage Refinancing, whether it be a relatively straight
forward refinance of his/her existing mortgage balance, or utilizing his/her
home equity for any other purpose desired, is a tactical decision and
usually the best one for them. I can work with them to see if I can help
lower his/her monthly payments, consolidate his/her current debt, and
arrange money for renovations. To find out more ways to get the most out of
his/her home's value or help pay his/her existing debts or just want a lower
monthly payment of his/her current mortgage, talk to me & I will be more
than happy to assist them.

Obtaining a mortgage is one of the toughest decisions to make; my help and
advice will resolve his/her mortgage solutions. Whether he/she choose the TD
Canada Trust Home Equity Line of Credit or one of our innovative TD Mortgage
products, I can find the best financing option for them.

Please feel free to contact me to help your client make financial decisions
that he/she will not regret.

With best regards,


I thought that this was very good, you may wish to choose TD, if so, send
me an email and I'll put you in touch with a good rep.

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

TREB average prices month by month since January of 2009 to August of 2010

This chart shows the TREB average prices month by month since January of
2009 to August of 2010 and clearly shows that prices have increased
substantially over the past 20 months or so and that there is a cycle of
price increases throughout the year
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Wednesday, September 22, 2010

TREB West districts sales to active listings

this graph shows the TREB West districts sales to active listings and
indicates that about 38% of all active listings are currently selling, this
is down compared to the previous 12 months, indicating that our current GTA
west marketplace is softer compared to a year ago
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Tuesday, September 21, 2010

TREB number of active listings on the market

This graph shows that the TREB number of active listings on the market is up
compared to last year but not as high as it was during the summer months
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Monday, September 20, 2010

Toronto and GTA first half results for September 2010 Housing Figures for resale homes

Sales for the first half of September 2010 are slightly better compared to first two weeks of September 2009. Prices are up 5% compared to the same period, thus we seem to be experiencing a healthy marketplace this year, regardless of the negative press.

Full report with sales stats are below

All the best,

Mark

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

TORONTO, September 16, 2010 ‐ Greater Toronto REALTORS(r) reported 2,623 sales through the Multiple Listing Service(r) (MLS(r)) during the first two weeks of September 2010. This represented a 22 per cent decrease compared to the 3,361 sales recorded during the same period in 2009. Year-to-date sales amounted to 65,455, representing a six per cent increase compared to 2009.

"Sales remain below the record pace we experienced in the second half of 2009. The prospect of higher interest rates and new mortgage lending guidelines resulted in higher than normal sales in the first few months of the year.

To balance this out, the pace of sales has slowed in the second half," said Toronto Real Estate Board President Bill Johnston.

"It is important to note that year-to-date sales remain above the number reported through the same period last year," added Johnston.

The average price for September mid-month transactions was $412,367 - up five per cent compared to the average of $393,818 recorded during the first 14 days of September 2009.

"Under current lending standards, the average selling price is affordable for a household earning the average income in the GTA. The annual price growth we have been experiencing has been justified by this positive affordability picture," said Jason Mercer, TREB's Senior Manager of Market Analysis.

Summary Of September Sales And Average Price

September

2010 2009

Sales Average Price Sales Average Price

City of Toronto ("416") 978 $435,643 1,280 $415,126

Rest of GTA ("905") 1,645 $398,529 2,081 $380,712

GTA 2,623 $412,367 3,361 $393,818

Source: Toronto Real Estate Board

Sales & Average Price By Home Type

September‐2010

Sales Average Price

416 905 Total 416 905 Total

Detached 312 919 1,231 621,706 476,329 513,326

Yr./Yr. % Change ‐22% ‐22% ‐22% 8% 6% 7%

Semi‐Detached 102 195 297 460,878 339,515 381,195

Yr./Yr. % Change ‐29% ‐14% ‐20% 0% 3% 0%

Townhouse 99 287 386 402,683 298,204 325,000

Yr./Yr. % Change ‐35% ‐28% ‐30% 14% 1% 5%

Condo Apartment 457 203 660 311,897 247,145 291,981

Yr./Yr. % Change ‐20% ‐11% ‐17% 0% 2% 0%

Source: Toronto Real Estate Board

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

Sunday, September 19, 2010

TREB overall number of sales each month past year

This graph shows the TREB overall number of sales each month past year and
indicates that there is clearly a cyclical pattern throughout the year for
the number of sales, up in the spring, lower in the summer, up again in the
fall and lower in the winter, we expect the fall of 2010 to be typical of
previous years sales
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Friday, September 17, 2010

The HOLY GRAIL is BS

I am blessed in life because I have a beautiful family, I have a wonderful wife and two great boys. My family is complete so far and I am very balanced and happy with life. I am lucky to have a positive attitude wired into my thinking, I've always been this way.

I too am blessed with many friends who seem to care about me. It's only 9am on September 17th 2010 as I write this and I've already had about 20 birthday greetings and emails and wishes, I'm very lucky and fortunate to have such great friends who think about me and care about me, it's a nice feeling.

In 52 years of hindsight, I think that this is the case because I love to help people and if you love to help people unconditionally, then they will like to help you back. I don't expect this, it just happens.

One thing that happens as you get older, you feel that you have earned the right to talk and tell people things. This must be why old people tell such long and boring stories. I hope to tell stories, and they are usually long, but I want them to be motivating, not boring! lol

So here is my story for today, now that I've reached the ripe old age of 52, I can tell you a motivating story.

What the heck, this is a blog and I can write what I want, can't I? :-)



A friend of mine wrote me yesterday and said that he ran into a friend who summed up his day nicely with "Well, this is just another day of searching for the Holy Grail"

Many subscribe to this philosophy, but not me. I don't believe in the Holy Grail. I think the Holy Grail is BS.

If you want something bad enough, you make it a goal and then you work towards it, that's the Holy Grail for me. I have many Holy Grails, about 50 big one's and 100's of little ones.

If you think that winning the lottery will allow you to reach your Holy Grail, you are dreaming and you will be very disappointed in life.

If you need or want something bad enough, you will likely just have to change something in your lifestyle to reach the goal! There is no Holy Grail

So, bottom line is that I don't think that way,

I don't feel there is a holy grail or a pot at the end of the rainbow, my mission is to work every day and do the things necessary every day and over time those things will accumulate and continue to add to the pile and the pot just gets bigger and bigger - we have short and long term goals and things we would like to accomplish and as we accomplish those task and reach those mini goals I get to reach my mini "Holy Grail" ." very often and this brings pleasure and satisfaction almost daily

the Equation of Life is

actions x time = long term accomplishments

what you do every day x time = your long term results

in anything and everything and every aspect of your life, work, wealth, relationships, everything

notice it's actions, you actually have to do something, not just sit around and hope!

You can dream and visualize, but eventually you have to start working and do something that takes you towards your goals and mini Holy Grails

The other great thing about the equation of life is that it's absolutely infallible, if you do it - it will happen, your end result goal is absolutely certain to occur if you work at it every day

It does not matter how old you are or where you are in life, if you want to accomplish something then you have to do something towards that goal and over time you'll reach that goal

Every day of my life as far back as I can remember - I constantly reward myself. Sometimes it's just silly little rewards and other times it's big rewards like trips we go on as a family and the boat we just bought and things that I like, but regardless, I ALWAYS reward myself someway every day for what I have done every day. It's a nice feeling, it's selfish, but it too keeps me going.

So, what's my point in all this? You have to act differently to get a different result, otherwise you will have the same result.

I think you should have many Holy Grails, not just one and you must work at it every day to reach your Holy Grail

(isn't that the definition of insanity: doing the same thing over and over and expecting a different result!)

I'm hopeful that YOU can find one little thing in what I say or do and that helps you towards reaching your goal and maybe you should reward yourself with some little things so that you can feel that you have accomplished something every day that takes you toward your holy grail and then you can sleep very well every night!

So here's to your health and your inner thoughts and goals and may they all align so you can have a healthy and happy life!

All the Best!
Mark

RE: Current Mortgage Interest Rates in the GTA

These are the current posted and attainable mortgage interest rates in the
GTA

TERM POSTED Attainable RATES*
6 Month 4.65% 3.95%
1 Year 3.70% 2.50%
2 Year 4.20% 3.20%
3 Year 4.75% 3.34%
4 Year 5.44% 3.49%
5 Year 5.79% 3.59%
7 Year 6.49% 4.70%
10 Year 6.80% 5.10%
Variable Rate 2.30%
Prime Rate 3.00%













* Rates may vary and are subject to change without notice OAC.
Rates Last Updated: Friday, September 17, 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

The Truth - Saving is the key to wealth!

Regardless of what anyone has told you, this is the truth:

Saving is the key to wealth - The rich are not rich because they earn a lot of money; the rich are rich because they save a lot of money.

If you do not spend less than you earn, and if you do not save the difference, you cannot build the wealth you desire.

You have to have a system. The easiest system is a percentage system.

Let's say you use the 10% system.

Pay yourself first, take the first 10% from your paycheck and bank it, invest it, squirrel it away, skim it, transfer it to another bank, take the cash and put in a savings deposit box, whatever you like, I don't care what you do with it, but put it away somewhere and just watch it grow over the upcoming months and years. It's that simple. And that difficult. Just do it.

To your success!
Mark

Thursday, September 16, 2010

Buying a Townhouse investment property in the Erin Mills Town Centre Churchill Meadows Area

Hello,

I thought that I would share with you the email that I just sent a client who is looking to purchase another investment townhouse property in the area of the Erin Mills Town Centre and Churchill Meadows (see the map below showing the boundaries of the area I am referring to).



The reasons he wants to purchase another townhouse in the Erin Mills Town Centre area are the same as my reasons for owning investment properties in the area, that is; great amenities, easy to rent, good rent, draws quality tenants, good future potential, townhomes are the lowest price to get into market, low maintenance fees compared to a high-rise condo and more.

This is the email I sent to him, he was asking about what the state of the market is, what the next three months should bring and if there any "good deals" on townhomes currently for sale on the market.

I wrote to him:

The market continues to do well, in spite of the negative press. The stats of late are typical of June, July and August, no worries, but with interest rates increasing people are a little more cautious. The market is not 'on fire' the way it was in the spring, but most properties are still selling, some big price reductions here and there, but nothing significant yet.

See the link below, there are two townhomes at 2955 Thomas that are 'typical' 2 storey or 3 storey townhouses, otherwise, everything is as you say, well over $300k

Click here
http://www.torontomls.net/PublicWeb/CL.asp?link_no=32913113.495304

to view Properties of Interest (this link will only work for 2 weeks, up to about end of September 2010)

At 5659 Glen Erin that about 1.5 years ago had units for sale at $240k now has a unit for sale at $314k, just nuts.

These new price levels seem that they are here to stay. As you pointed out, prices are at $345k and more for McFarren, on at $358 and another at $385k at McFarren are both sold conditionally.

I too was hoping for a 'good deal' sometime in the summer, only one at 3150 Erin Centre, but it faced Erin Centre and was at the corner of Erin Centre and Oscar Peterson and it was the only 3 bedroom that sold for a hair under $300k

Notice that the 'Last Status" on many of the listings is PC meaning a price change, meaning they have dropped their price recently. This is an indication of a normal to softer market, but the prices are still high.

I'm not sure what Oct, Nov and December will bring. I don't think interest rates will go up again. If there is a recession or slowdown out there, it's certainly not in the GTA or Mississauga real estate sector.

The townhouses at 2955 Thomas are about the only townhomes that will carry with the rent. Passing on those at the price they are at could be a mistake in hindsight. There are some typical 2 storey units in that complex, but not listed right now.

Please let me know if you have more questions or would like to see inside any of the properties above.

Thank you,
Mark


So there you have it, the current townhomes for sale in the Erin Mills Town Centre and Churchill Meadows area in a nutshell!
Mark

TREB MLS Sales to new listings ratio, monthly with three previous years for comparison

This chart plots the monthly MLS sales to new listings ratio for the current
year and the previous three years. The recurring season trend can be
examined along with comparisons to previous years for each month. Then the
sales to new listings ratio moves higher the annual average price growth
generally increases, often at a rate well above inflations. The the sales
to new listings ratio moves lower the annual average price growth generally
declines and can become negative.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Wednesday, September 15, 2010

Shift in GTA home prices August 2010 compared to 2008

This chart shows the percentage of sales in each price range from August 2008

This chart shows the percentage of sales in each price range from August 2010

This is a graphical representation showing the percentage of homes that sold
in each price range.

Note the shift when you compare this month to 2 years ago, quite
significant!

Enjoy!

Mark

Thank you for reading my blog and if there is anything else I can help you
with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

GTA more homes on market and number of sales down housing market indicators

this chart shows housing market indicators and indicates that year over year
that the number of sales is down by about 22%, the number of active listings
is up by 25% and both of these indicate that there is far greater inventory
on the GTA market this August compared to August of 2009

Tuesday, September 14, 2010

TREB MLS new listings monthly time series with trend line

This chart plots the monthly MLS new listings since January 1995
The blue line shows the actual new listings on the market.
The brown line is the trend computed using a 12 month moving average, which
exhibits no seasonal variations or other irregular fluctuations. A
substantial change in actual new listings must occur to change the direction
of the trend.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Monday, September 13, 2010

TREB MLS Average resale home price monthly with three previous years for comparison

This chart plots the monthly MLS average home price for the current year and
the previous three years. The recurring seasonal trend can be examined
along with comparisons to previous years for each month.
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Friday, September 10, 2010

TREB MLS New listings monthly with three previous years for comparison

This chart plots monthly MLS new listings for current year and the previous
three years. The recurring seasonal trend can be examined along with
comparisons to previous years for each month.
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thursday, September 09, 2010

TREB MLS Sales monthly time series with trend line

This chart plots monthly MLS sales since January 1995. The blue line shows
the actual sales. The brown line is the trend computed using a 12 month
moving average, which exhibits no season variations or other irregular
fluctuations. A substantial change in actual sales must occur to change the
direction of the trend.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

TREB Housing Market Charts, TREB MLS Sales Monthly with three previous years for comparison

This chart plots monthly MLS sales for the current year and the previous
three years. The recurring seasonal trend can be examined along with
comparisons to previous years for each month.
Mark



This chart plots monthly MLS sales for the current year and the previous
three years. The recurring seasonal trend can be examined along with
comparisons to previous years for each month.
I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Days on the market in the GTA

The number of days on the market in the GTA has increased in August compared
to the spring of this year but was about normal for the month.

See the graph below,
Mark

Explanation of Bank of Canada Interest rate increase - September 9, 2010

This might shed some light why the bank rate was increased today, directly from TD Economics, all the best!

Mark



TD Economics

September 8, 2010

Data Release: Bank of Canada hikes quarter point, but provides little guidance for the future

The Bank of Canada lifted the overnight rate by a quarter point to 1.00%.

The accompanying communiqué was exceptionally brief, providing limited guidance to markets

as to future actions.

The Bank highlighted the uneven nature of the global economic recovery and noted the factors

restraining U.S. demand. It remarked that the Canadian economy had underperformed the

Bank's expectations in the second quarter, but stressed that domestic strength is expected to

continue. The Bank indicated that it will be scaling back their Canadian economic growth

forecast slightly in the October Monetary Policy Report (MPR), but few details were provided

other than that the lower forecast will reflect a weaker profile for U.S. economic growth.

Importantly, the Bank noted that inflation has been in line with expectations and the dynamics

for prices are unchanged – this is interesting given the recent deceleration in core inflation.

The communiqué emphasized that financial conditions in Canada remain "exceptionally

stimulative" and it maintained the refrain that "Any further reduction in monetary stimulus

would need to be carefully considered in light of the unusual uncertainty surrounding the

outlook."

Key Implications

It is evident from the communiqué that the Bank is in highly reactive mode. In the absence of

clarity surrounding the outlook, there is no commitment or hint to either a pause in the

tightening cycle or the continued gradual nudging of interest rate higher. Key economic and

financial indicators over the next six weeks will ultimately decide the next decision on October

20.

In our opinion, the odds favour the Bank of Canada pausing for some time. And, TD

Economics does not anticipate another tightening before March of next year.

Since the start of this year, the Bank's outlook for economic growth in 2011 has been too

rosy. Their forecast for real GDP growth in 2011 has been steadily ratcheted downward, from

an expectation in January of 3.5%, down to 3.1% in April, sliding to 2.9% in July. Our view is

that the July MPR projection is far too high, although the fact that the Bank suggests that only

a slightly more gradual recovery is expected raises the possibility that the Bank remains too

optimistic. In the opinion of TD Economics, the Canadian economy will be hard pressed to

expand by 2% next year. The economy faces both external and domestic headwinds. On the

external front, the U.S. economy is likely to grow at only a 2% pace in 2011 and a moderation

in global demand growth is likely to cap the upside to commodities – both of which pose a

constraint on Canadian exports. On the domestic front, a weaker housing market will dampen

residential investment and temper consumer spending on big-ticket items. Moreover, the high

indebtedness of Canadian households is also likely to act as a serious constraint on outlays

even in a continuing low interest rate environment. TD Economics expects Canadian

economic growth to average an annualized 1.8% in the second half of 2010 and an average of

1.9% in 2011. While the Bank anticipated in July that the economy will be back to full capacity

by the end of 2011, TD Economics anticipates that it will take at least two quarters longer to

reach that goal.

The implication is that soft economic numbers are anticipated in the coming months. Indeed,

we expect that the unemployment rate could edge higher in the near term and core inflation is

expected to dip towards 1.4% in early 2011. This outlook suggests that a pause in the

tightening cycle could easily occur.

Current posted and attainable mortgage interest rates

These are the current posted and achievable rates on the market in the GTA marketplace.

All the best,
Mark

TERMPOSTED Attainable RATES*
6 Month 4.65%3.95%
1 Year3.70%2.55%
2 Year4.20%3.20%
3 Year4.75%3.34%
4 Year5.44%3.49%
5 Year5.79%3.64%
7 Year6.49%4.70%
10 Year6.80%5.10%
Variable Rate2.05%
Prime Rate2.75%















* Rates may vary and are subject to change without notice OAC.

Wednesday, September 08, 2010

Bank of Canada Raised Prime Rate - mortgage rates to follow

The Bank of Canada Raised the Prime Rate Today

The Bank of Canada raised its key prime interest rate by a quarter of a per cent today, for the third consecutive time this year.

The Bank noted in its announcement that it “now expects the economic recovery in Canada to be slightly more gradual” than it predicted at the time of its last rate hike in July, citing weaker economic activity in the U.S.

However, the Bank also stated today that consumption growth in Canada “is expected to remain solid and business investment to rise strongly” supported by “accommodative credit conditions, which have eased in recent weeks mainly owing to sharp declines in global bond yields.”

Pricing on many fixed mortgages for new borrowers has been edging down in recent weeks but this may reverse the trend.

A competitive rate for a five-year fixed mortgage is now available and can be found if the buyer looks carefully at 3.89 per cent for qualified borrowers.

A competitive variable rate mortgage is available to qualified borrowers at 2.35 per cent (prime of 3.00 per cent minus 0.65 per cent), factoring in the Bank’s rate increase today.

Most lending institutions and Banks in Canada are expected to respond to the Bank’s rate hike by increasing their prime lending rates by a quarter point, although lenders vary in when they adjust their rates for variable-rate mortgages.

Contact your mortgage professional for more information on how a particular lender may implement a rate increase.

All the best!
Mark


GTA Average Real Estate Prices and Activity for August 2010

This is the report for August from the Toronto real estate board and
indicates a 'normal' amount of activity and price drop for the month of
August.

All the best!
Mark

GTA REALTORS(r) Report Monthly Resale Housing Figures

TORONTO, September 3, 2010 ‐ Greater Toronto REALTORS(r) reported 6,232
sales through the Multiple Listing Service(r) (MLS(r)) in August 2010.

This represented a 22 per cent decrease compared to the 8,035 sales recorded
during the same period in 2009. New listings decreased by one per cent
year-over-year to

10,488.

"The prospect of interest rate hikes and new mortgage lending rules
prompted some households to purchase a home sooner than they otherwise would
have this year. The

result has been a larger than normal dip in sales over the summer months.
With this said, it is important to recognize that sales on the year were
eight per cent higher than

in 2009," said Toronto Real Estate Board President Bill Johnston.

The average price for August transactions was $411,012 - up six per cent
compared to the average of $387,921 reported in August 2009.

"Market conditions have remained tight enough to support higher home prices
in comparison to last year. Under current mortgage lending standards, a
household earning the average income in the GTA can comfortably afford the
mortgage payments on an average priced home. Market conditions and the
affordability picture would have

to change dramatically before a sustained drop in the average selling price
would take place," said Jason Mercer, TREB's Senior Manager of Market
Analysis.

HST and Real Estate

This article below explains HST for real estate transactions in great detail and I thought you would find it of interest.
All the best!
Mark

September 2010

THE HST AND ITS AFFECT ON ONTARIO REAL ESTATE TRANSACTIONS

The Harmonized Sales Tax (HST) came into effect on July 1, 2010 and as I am sure everyone knows, replaces the federal goods and services tax (GST) and the provincial sales tax (PST). The good news from a real estate perspective is that the sale of used residential property (i.e. your home), which was exempt previously from both GST and PST, is also exempt from HST. The bad news is that a number of other services associated with or incidental to real estate transactions are now subject to the 13% HST whereas before they were only subject to the 5% GST. These services include realtor`s commission, legal fees, moving fees and home inspection fees.

The rules for new homes are little more complicated. However an Agreement for the purchase of new home which was signed before June 18, 2009 will not be subject for HST even if the transaction closes after July 1, 2010. A purchaser may also be entitled to receive a transitional rebate of part of the 8% provincial component of the HST where the construction of the home straddles the July 1, 2010 implementation date. For new homes where less than 10% of the house was complete before July 1, 2010, there will be a rebate available equal to 36% of the federal component of the HST and 75% of the provincial component of the HST. However the rebate of the provincial component of the HST is only available for the first $400,000.00 of the purchase price. If you are paying more than this, there will be no rebate on the amount of the purchase price which exceeds $400,000.00.

Typically new homes in Ontario were priced with the GST included. The builder would pay the GST on closing. The purchaser would assign the right to receive the rebate to the builder in the Agreement of Purchase and Sale. It is unclear whether this practice will continue under the HST regime especially for homes valued at more than $400,000.00. As such you should make sure that the price you agree to pay does include the HST. If not, tax of 13% will be added on closing and you will have to apply to receive the rebate from each of the federal and provincial governments. In addition there will be no rebate available for the provincial component of the tax payable on the portion of the purchase price exceeding $400,000.00.

Commercial real estate will be subject to HST. However provided the purchaser and seller are HST registrants, the purchaser will be able to claim the HST paid as an input tax credit. As such it is very important that the Agreement of Purchase and Sale addresses this issue.

Residential lease payments were exempt from GST and remain exempt from HST. Commercial rental payments however will be subject to the full 13% HST, and the payer will be entitled to claim an input tax credit for the full amount of the payment.

No matter how you look at it, the HST is another flagrant tax grab for the already highly taxed Canadian consumer. Because it is an end-user tax, businesses will now be able to claim the provincial portion of the HST on goods they buy in the course of carrying on their business as an input tax credit whereas before PST could not be recovered unless a business qualified for a specific exemption. It remains to be seen however how much of the increased cost of an Ontario real estate transaction can be passed on to consumers. It is a safe bet that the slowing of the real estate market since the HST came into effect is not a coincidence. Courtesy of Michael Woods

Any questions, please let me know, thank you, Mark