Friday, January 28, 2011

Canadian Real Estate Predictions for 2011

Below are the real estate predictions from Canada Realty News for 2011 in Canada. They are quite optimistic, probably the reason I like their predictions. They are predicting that prices will hold steady in light of a 7% decline in home sales. The complete release is below.

I believe that for the GTA real estate marketplace we will see a 4 to 6% increase in prices. Sales will be down because people just don't seem to be moving as frequently as there were a few years ago.

I wish you all the best!
Mark



2011 Canadian Real Estate Market Forecast and Prediction

According to many real estate experts, the Canadian housing market is expected to stabilize in 2011 returning to more normal long-term growth patterns after a decade-long bull run.

The housing sector has avoided two extreme bubble-and-crash scenarios over the past three years when resale prices dropped sharply in 2008, then quickly rebounded as low mortgage rates and lower prices supported the turnaround.

Record low interest rates fuelled a home buying spree in 2009 that helped pull the Canadian economy out of recession and pushed home sales back to record levels. The market cooled rapidly over the summer of 2010 as the Bank of Canada began hiking interest rates, though recent data have indicated the market may be stabilizing.

In 2011, interest rates are expected to hike further as the economy improves. While still at historical lows, any hike in interest rates have big effects on mortgage rates. If interest rates are raised too quickly, this will further dampen real estate prices. On the other hand, if the
government decides to lower the rates once again, as unlikely as this may seem, then home sales might surge slightly.

Government and institutional lending policies will also affect real estate prices. As banks and governmental policies become increasingly strict, more people will be turned down for mortgages. At the very least these potential home buyers will need to choose from more modest homes if their mortgage is declined.

In 2011, Canada will experience an overall decline of 0.9% in home prices.

Not all provinces will feel the effects of fluctuating real estate prices equally. Some provinces will have a more profound move in housing prices than others.

While real estate prices might remain fairly stable, buying activity is expected to slow down significantly. The Canadian Real Estate Association expects a 7.3% decline in home sales. This means that homeowners in a panic to sell may have to drop their prices substantially in order to liquidate.

Others may need to wait longer than in previous years to sell.

The drop-off in home sales comes from an anticipated slowing of economic growth along with a reduction in consumer spending. Less free floating capital means fewer large purchases. Ample inventory levels, steady demand, and moderate growth, both in terms of sales and prices, will characterize the market in 2011.

Is it a Good Time to Buy a Home in Canada?

Timing the market perfectly is a difficult task. Often it is easier to look at one's income and decide if the stability of personal finances are adequate to acquire a house for the long term. If not, there is no shame in renting or leasing until circumstances permit such a purchase. But trying to perfectly time a house purchase with the market is like trying to buy a stock at its lowest point before a rebound - very difficult indeed.


Copyright (c) 2010 Canada Realty News(tm). All Rights Reserved.
The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation

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, January 27, 2011

Condominium Insurance Policy on Your Real Estate Investment Properties - Do you need it?

Hello,

Do you have your own insurance policy on your investment property that is a condominium townhouse or condominium high-rise? If not, you better think about adding your own policy.

I am not able to give legal advice or any expert advice on issues that don't relate to real estate, but please consider what I am saying below and consult with your own insurance company and condominium corporation. This advice below could prove to be very important or costly to you in the event of a problem in the future.

My thinking in the past was that since a condominium corporation has building insurance and since a tenant has contents insurance, then I don't need to buy insurance on my investment properties.

This is incorrect!

I just put insurance on all our investment properties There are many reasons for me to have an insurance policy on these rental investment properties.

Some reasons for me having insurance on our investment properties are as follows.
  • I am now covered if the condominium insurance does not cover water damage or roof damage or any other damage such as water, ice, snow or sleet damage on the interior or exterior of the unit
  • If the condominium insurance company attempts to claim money from me for damage caused by our tenant then I am covered.
  • If the condominium insurance does not cover the entire loss and comes after me to pay for part or all of their loss then I am covered
  • If a tenant causes a problem, such as plugging a drain line, that causes damage outside of the unit and the condominium corporation comes after the tenant or me to pay for those repairs, I am now covered.
  • If the tenants insurance does not cover damage that the tenant causes inside the unit, my insurance may now cover that damage.
  • If the tenant lets their insurance policy lapse, then at least I am covered in the event of a loss caused by the tenant.
  • In the event that the tenant has to leave the unit for some reason and I'm losing rent, such as repairs after a major fire or flood inside the unit, then I am now covered for up to 1 year rental loss while the unit is being repaired.
  • There are other endorsements in the insurance policy that I now have that cover us for many other situations, but these items above seem to be the major potential problem issues.

The annual cost to me is about $100 per property.

These are some of the major reasons for me to have insurance on all our investment properties and I would recommend that you look into obtaining insurance on all of your investment properties too.

I wish you all the best!
Mark

Wednesday, January 26, 2011

2011 Summary of December 2010 sales and average prices

The chart below shows the 2011 Summary of December 2010 sales and average prices


Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Tuesday, January 25, 2011

Humour about Why teachers drink

Our administrator sent me this email below, it's very funny.

These are answers to questions that people have given when they are stumped or don't know the real answer, some are exceptionally witty, enjoy!

Mark






Don't give up on this one it is so funny.................

Some of it is anyways!




























































Monday, January 24, 2011

2011 TREB Affordability Indicator Share of Average Household Income Used for Mortgage Principal and Interest, Property Taxes and Utilities

2011 TREB Affordability Indicator Share of Average Household Income Used for Mortgage Principal and Interest, Property Taxes and Utilities


Explanation: This chart plots the share of average household income that goes toward mortgage principal and interest, property taxes and utilities for the average priced home in the GTA subject to the following assumptions:
1.Average annual or year-to-date home price as reported by TREB
2.20 per cent down payment
3.Average 5-year fixed mortgage rate (Statistics Canada); 25-year amortization
4.Average property tax rate reported by/estimated from the Statistics Canada Survey of Household Spending
5.Average utilities cost reported by/estimated from the Statistics Canada Survey of Household Spending and components of the Consumer Price Index
6.Average household income reported by the Census of Canada. Years in between Censuses estimated using interpolation (years upto2005) or annual growth in average weekly earnings reported by Statistics Canada in the LabourForce Survey (2006 onward).

Source: Toronto Real Estate Board Data and Calculation; Statistics Canada
Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Sunday, January 23, 2011

TREB Real Estate West Zones Sales to active listings ratio over time

TREB Real Estate West Zones Sales to active listings ratio over time


Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Saturday, January 22, 2011

TREB Real Estate West Zones days on the market over time

TREB Real Estate West Zones days on the market over time


Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Friday, January 21, 2011

2011 TREB MLS® Sales-to-New Listings Ratio Compared to Average Annual Per Cent Change in Home Price

2011 TREB MLS® Sales-to-New Listings Ratio Compared to Average Annual Per Cent Change in Home Price


Explanation: This chart plots the monthly sales-to-new listings ratio (blue line) with year-over-year average annual per cent price change (brown line). When the sales-to-new listings ratio moves higher, average annual per cent change in home prices generally trends higher. When the sales-to-new listings ratio moves lower, average annual per cent change in home prices generally trends lower.
Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Thursday, January 20, 2011

Canada Bank Rate remains at 1%, prime lending rate unchanged at 3%

The Bank of Canada decided yesterday January 19, 2011 to hold the prime interest rate at it's current level of 1% meaning that prime lending rates at major banks remain unchanged at 3%

The Bank of Canada stated that they feel the economy will do better with a rate hold for the time being.

All the best!

Mark

Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

TREB Real Estate comparison of average and median prices since 2000

Bar graph showing the TREB Real Estate comparison of average and median prices since 2000


Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Wednesday, January 19, 2011

2011 TREB MLS® Average Price Monthly Time Series with Trend Line Actual

2011 TREB MLS® Average Price Monthly Time Series with Trend Line Actual

Explanation: This chart plots monthly MLS® average price since January 1995. The blue line shows the actual average price. 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 average price must occur to change the direction of the trend.
Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Tuesday, January 18, 2011

2011 TREB MLS® New ListingsMonthly Time Series with Trend Line

Explanation: This chart plots monthly MLS® new listings since January 1995. The blue line shows actual new listings. 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.



Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Monday, January 17, 2011

Mortgage Tightening of Rules in Canada from Bank of Canada

Some very Interesting news on mortgages in Canada.

The Bank of Canada has announced some changes to lending rules in Canada.
Mortgages can only be CMHC insured if they are 30 years or shorter amortizations. This means that most lenders will not approve mortgages over 30 years with less than 10% downpayment.

Refinancing of homes will be capped at 85% of the value, down from the current 90%

Interesting news indeed!

In my opinion, rather than increasing rates the "tightening" is a better tactic for the Bank of Canada to take. It will help protect us all from overextending ourselves.

Thanks for the update and hope you have a great year!
Mark

This is the article that was just sent to me from a mortgage broker, Paul
Meredith of CityCan Financial

With rising consumer indebtedness among Canadians, Finance Minister Jim Flaherty announced this morning that the government will be implementing new tighter restrictions on mortgage lending. As of March 18th, mortgages with amortizations greater than 30 years will no longer qualify for government-backed mortgage insurance (CMHC), down from the current 35 years.


In addition to the reducing the maximum amortization, they will also be restricting the amount of money one can obtain through refinancing to 85% of the homes value, down from the current 90%. This will also take effect on March 18th.

Mortgage applications with 35 year amortization and refinancing to 90% will still be accepted up until March 18th. Although, we will see if CMHC doesn't start declining these applications early, as we saw last spring when they reduced the maximum refinance to 90%, down from the previous 95%.

Home buyers will still be able to purchase homes with as little as 5% down payment. There are still ways to purchase with no money down, such as using a 5% cash back and applying it to the down payment. There is no word as to whether CMHC will continue to offer that product after March 18th.

Tomorrow morning, the Bank of Canada makes their next interest rate announcement. The prime rate is expected to remain unchanged at 3.00%.

Written by Paul Meredith, CityCan Financial

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

2011 TREB MLS® New Listings Monthly Time Series with Trend Line Actual

2011 TREB MLS® New Listings Monthly Time Series with Trend Line Actual



Explanation: This chart plots monthly MLS® new listings since January 1995. The blue line shows actual new listings. 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.

Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Sunday, January 16, 2011

2011 TREB MLS® Sales Monthly Time Series with Trend Line

TREB MLS® Sales Monthly Time Series with Trend Line


Explanation: This chart plots monthly MLS® sales since January 1995. The blue line shows actual sales. 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 sales must occur to change the direction of the trend.


Toronto Real Estate Board (TREB) Average Prices and GraphFor more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com