Wednesday, February 29, 2012

Economy is humming in Canada, will it last?

This article below summarizes what has been happening in Canada recently and the outlook for the economy from the view point of TD Canada Trust They are optimistic on some points and pessimistic on others, enjoy the read! Mark

HOPE BOLSTERS MARKETS, BUT CAN IT LAST?

Highlights

• Financial market sentiment has proven far more upbeat than expected in early 2012, supported by reduced risks of a systemic banking crisis in Europe and better-than-anticipated U.S. economic data.

• This improved sentiment and market trends have led to an upward revision to our long-term govern­ment bond yield forecasts, with Canadian 10-year bond yield to reach 2.85% by year-end. We have also increased our near-term commodity price forecasts.

• Given all of the positive news factored into the current strength of the Canadian dollar, there is risk of a near-term pullback. Nevertheless, the loonie should trade broadly in a 5 cent range above and below parity over the medium term.

• The positive financial sentiment belies the continued risk-filled environment. We continue to see risks from the European fiscal crisis, the slowdown in emerging market economies, and now from high oil prices. Volatility is likely to increase in the coming months.

With two months of 2012 now under our belts, the mood on global financial markets is decidedly calmer than we had anticipated. The S&P/TSX has rallied so far this year, and measures of market volatility have returned to more normal levels (see chart). Markets seem far more confident that Eu­ropean leaders will be able to manage their sovereign debt crisis without triggering global contagion. Particularly, the European Central Bank's (ECB) first injection of liquidity to the banking sector back in December helped to dramatically ease liquidity pressures in the financial system. Expectations are high for the take-up on the next opportunity for financial institutions to tap cheap three-year loans from the ECB, on February 28th. Consensus expectations are for around €470 billion Euros of loans to be extended, which is just shy of the amount loaned in December. While the increased liquidity to the banking system is unquestion­ably positive, it does not address the fiscal challenges facing European governments.

Last week, leaders also managed to agree on a sec­ond bailout package for Greece, hopefully averting a disorderly default in March. Now Greece must solicit participation from private sector bond holders for a debt swap at less than half of the par value of current Greek bonds. Unfortunately, we suspect that the current bail out package will ultimately prove insufficient to put Greek debt on a sustainable path. The Greek economy is in a rapid downward spiral that will deeply impair fiscal improvement. So, while markets are calm for now, the Greece crisis is bound to cause renewed financial market volatility in the future.

U.S. economy: hope, with a side of caution

Apart from markets stepping back from the precipice of impeding euro-driven doom, the rally seen in equities also has its roots in the more upbeat U.S. economic data so far in 2012. Both businesses and consumer confidence has improved from the lows seen last fall. And greater optimism in manufacturing is being born out in the hard production data, which continues to grow at a steady pace. Durable goods orders also point to continued strength ahead and corporate balance sheets also remain very healthy.

Perhaps the best news is that U.S. job growth has been accelerating out of its mid-2011 soft patch. Maintaining the current pace of 200,000 new jobs per month is just what is needed to sustain spending growth and help repair household balance sheets. The other good news is that the housing market is showing some signs of improvement; existing home sales and housing starts are rising, and residential investment is starting to contribute to economic growth. Auto sales also got off to a very strong start to the year.

However, just as the European risks decline, a new threat in the form of rising oil prices is rearing its head once again. Resurgent gasoline prices are making it feel like 2011 all over again. Just when just as the U.S. seems to be picking up steam, rising gasoline prices – already above $4 per gallon in California – start to bite at consumers' purchasing power. Moreover, recent increases in crude prices suggest gasoline is headed higher in the coming weeks (see chart). Tensions surrounding Iran have built a large risk premium into the price of oil, and if crude prices come down somewhat (see forecast pages 3), consumers should get some relief. But considering rising gas prices have preceded every major U.S. economic slowdown in the past 40 years, it is a risk that bears close watching.

Bottom Line

So what does all this mean for our outlook for markets? With the ECB backstopping the European banking system with cheap liquidity, a lower chance now that Greece will imminently default on its debt, and a stronger economic picture emerging from the U.S., we no longer expect a third round of quantitative easing (QE3) by the Federal Reserve. That scenario is now a risk to our outlook in the event of a worse-case outcome in Europe, or more signs the U.S. growth is faltering.

That has led us to raise our forecasts for longer-dated bond yield forecasts both in the U.S. and Canada (see table page 3). However, unlike the U.S., there has been little to cheer about in the Canadian economic data of late. That has led us to raise our year-end Canadian bond yield targets relatively less than Treasuries. Rosier market sentiment has meant commodity prices have remained firmer, and oil prices continue to rise, so we have raised our near-term crude price target accordingly, but our longer-term targets unchanged.

Our forecast for the Canadian dollar, however, has remained unchanged. With the price of oil vulnerable to a giveback if geopolitical tensions don't play out as feared, and the potential for a deterioration in market sentiment if all does not go smoothly in Europe, we still see near-term weakness in the Canadian dollar (Strong Canadian Dollar Ahead, But Mind The Potholes). Moreover, removing QE3 from our base-case outlook is a plus for the U.S. dollar, and another headwind for the loonie. But beyond that we continue to expect relatively strong macroeconomic funda­mentals to support a Canadian dollar in a 5-cent range above or below parity with the U.S. dollar over the medium term.

While our pessimism of late 2011 has not been borne out, the changes to the forecast are generally positive, so they are ones we are happy to make. Now we all have to keep our fingers crossed that these new hopes aren't dashed by a continued spike in oil prices, renewed problems in Europe or a hard-landing by emerging market economies.

Friday, February 24, 2012

2012 TREB Affordability Indicator Share of Average Household Income Used for Mortgage Principal and Interest, Property Taxes and Utilities

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.



Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Thursday, February 23, 2012

2012 TREB MLS® Sales-to-New Listings Ratio Compared to Average Annual Per Cent Change in Home Price

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 Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Tuesday, February 21, 2012

2012 TREB MLS® Average Price Monthly Time Series with Trend Line Actual

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 Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, February 20, 2012

2012 TREB MLS® New Listings Monthly Time Series with Trend Line

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 Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Saturday, February 18, 2012

TD Canada Trust latest Economic News - February 17, 2012

This is the latest news from TD Canada Trust about Candian home sales,
interesting reading indeed!
Mark

Data Release: Canadian home resales lower in January


The number of Canadian home resales fell by 4.5% in January on a seasonally-adjusted basis. This was the first monthly decline in five months, and the largest since July 2010. Still, the January resale

level is slightly above the monthly average observed in 2011.


Regionally, the January drop in resales was especially marked in Greater Toronto and Montreal.


Overall, there were declines in over half of all local markets.


Despite the volume decline, average resale prices rebounded 1.6% in January (seasonally adjusted) following a similar decline in December 2011. Prices rose both in Toronto (+3.8%) and Vancouver

(+2.7%).


Key Implications


Canada's housing market was firming up during the second half of 2011, due in large part to the relative stability of the Canadian economy, steady consumer confidence and historically low interest rates.


This month's decline is likely reflective of what will shape up to be a softer year in sales, especially when it comes to Toronto and Vancouver condos. We anticipate growth will slow down in 2012 both in terms of sale volumes (+0.5%) and prices (+2.5%). In contrast, the actual
correction is foreseen to start in 2013, with both resales and prices turning negative.


This forecast is in line with the timing of interest rate increases, which we expect will start to take hold in 2013.


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

Friday, February 17, 2012

Follow up to ADU's and Basement Apartments are now legal in Ontario due to Bill 140

This is a follow up to my previous post about basement apartments becoming legal in Ontario for any age of property. It's also called an ADU - Accessory Dwelling Unit

The City of Mississauga is planning on come on board with this, but there are public information
meetings and zoning by-laws that must be updated and changed to reflect the new law. This process requires more public meetings and then council must approve the changes, I imagine it will take a while.

I'm still waiting to hear back from someone in planning department on a couple of questions.

Here is the link to our webpage with all the information :

Link to City of Mississauga Website about ADU's

You can register at :




Register for meeting about ADU's at City of Mississauga

As I find out more information about these ADU's and basement apartments in Mississauga and Ontario I'll post it here.



Thank you,




Mark

2012 TREB MLS® Sales Monthly Time Series with Trend Line

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 Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Thursday, February 16, 2012

Mortgage interest rates are going up!

This was the advice from a mortgage person that just sent me information
about what's happening with mortgage lending rates. It seems that the
'specials' for the fixed rate mortgages are dissappearing. If you are
purchasing or renewing, now is the time to lock in, assuming that's the
route you want to go. Read about it below.

You know my advice, go variable, read more about it here:

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

All the best!
Mark

Hi Mark ,

Last few days we have seen quite a few lenders have cancelled the special
rates for 4 year fixed @2.99%. I expect all lenders will follow.

What can you do to help yourself?

If you have put a purchase offer, get these special rates ASAP. (Still some
lenders have great rates.)
Unforturnately most banks don't offer these rates for pre-approval.
But we do have some good news for clients to be pre-approved and hold these
historical low rates.

3 year fixed rate @2.89% available for pre-approval, rate hold for 120 days
4 year fixed rate @ 2.99% for high ratio mortgage, 3.09% for conventional
mortgage, rate hold 90 days for pre-approval.
5 year fixed rate @ 3.19% for high ratio mortgage, 3.29% for conventional
mortgage, rate hold 90 days for pre-approval.

These rates won't last long, so please act quickly if you are looking to buy
or refinance

Sales for the first half of February up by more than 9% compared to the same period last year Toronto Real Estate Board









Below is the latest report from the Toronto Real Estate Board regarding the sales for the first half of February, up by more than 9% compared to the same period last year.




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


Toronto, February 16, 2012 - Greater Toronto REALTORS(r) reported 3,206 sales through the TorontoMLS(r) system through the first 14 days of February 2012 - up by more than nine per cent compared to the 2,933 sales reported during the same period in 2011. New listings were up by 13 per cent over the same period.


"The GTA resale home market became better supplied during the first 14 days of February. If growth in new listings continues to outstrip growth in sales this year, competition between home buyers will ease. More balanced market conditions on a sustained basis would result in a lower annual rates of price growth later in 2012," said Toronto Real Estate Board (TREB) President
Richard Silver.


The average selling price during the first 14 days of February was $491,493 - up by nine per cent compared to the first 14 days of February 2011. On average, sellers received 99 per cent of their asking price and their homes were on the market for an average of 25 days.


"Both buyers and sellers are aware of the substantial competition that exists for most listings in the GTA. There is not a mismatch in expectations, so homes sell quickly at close to the asking price," 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

2012 TREB MLS® Average Resale Home Price Monthly with Three Previous Years for Comparison




Toronto Real Estate Board (TREB) Average Prices and Graph
Explanation: 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.














For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Tuesday, February 14, 2012

2012 TREB MLS® Sales-to-New Listings Ratio Monthly with Three Previous Years for Comparison



Toronto Real Estate Board (TREB) Average Prices and Graph




Explanation: This chart plots the monthly MLS® sales-to-new listings ratio (SNLR) 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. When the SNLR moves higher, annual average price growth generally increases – often at a rate well above inflation. When the SNLR moves lower, annual average price growth generally declines and can become negative.
































For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, February 13, 2012

2012 TREB MLS® New Listings Monthly with Three Previous Years for Comparison



Toronto Real Estate Board (TREB) Average Prices and Graph




Explanation: This chart plots monthly MLS® new listings 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.











For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Friday, February 10, 2012

2012 TREB MLS® Sales Monthly with Three Previous Years for Comparison




Toronto Real Estate Board (TREB) Average Prices and Graph
Explanation: 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

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Thursday, February 09, 2012

Canada's Housing Market in 2012 - bubble or balloon?

A client of mine just sent me this Great article below about Canada's Housing Market


I've been worried about a bubble or a balloon in our local market since about 2003 when many of us thought "prices can't go higher" and sure enough they just kept marching upward.

Since I've been plugged into the real estate market and prices since the early 80's it's difficult for me to comprehend after a rise each year since 1995 of 6 to 10% that prices can continue to escalate. It is the opposite of the old school thinking of 7 year economic cycles that we used to experience and intuitively, we all know that prices cannot continue to rise indefinitely.

So where is the peak? Nobody knows for sure, but I don't think we are there yet in the GTA

It's a little disconcerting to see prices so high. If interest rates begin to increase, as they are suggesting by the beginning of 2013 then it could start a slowdown.

In Toronto we lack listings. There has been a low amount of listings since January of 2009 and the demand just keeps on increasing, hence the multiple offers on properties that are priced well.

We are looking to purchase a bungalow in an average area of Oakville, one was listed on Monday this week for $579,900 and it sold firm by Wednesday for $620,000 I heard there were 11 offers, silly!

Any worry is as the article below states "Vancouver's ratio of home prices to incomes is the highest in the English-speaking world" and that is some cause for concern.

I was surprised to read that Toronto is building more than 75 skyscrapers compared to New York, they just don't seem to be able to build condos fast enough in Toronto for the past decade or so.

Time will tell what happens with the market. Personally, I don't see interest rates rising much more than .5% by the end of 2013 and I don't see a plethora of listings coming on the market either for the next 3 to 6 months, this only means that demand will eat up any new supply and prices will likely continue to increase for at least the next 3 to 6 months in the GTA.

All the best!
Mark











Canada's Housing Market









Look out below









After years of lecturing America about loose lending, Canada now must
confront a bubble of its own









Feb 4th 2012 TORONTO from the print edition








*


























IN FEW corners of the world would a car park squeezed between two arms of an
elevated highway be seen as prime real estate. In Toronto, however, a
75-storey condominium is planned for such an awkward site, near the
waterfront. The car park next door will become a pair of 70-storey towers
too. In total, 173 sky-scrapers are being built in Toronto, the most in
North America. New York is second with 96.








When the United States saw a vast housing bubble inflate and burst during
the 2000s, many Canadians felt smug about the purported prudence of their
financial and property markets. During the crash, Canadian house prices fell
by just 8%, compared with more than 30% in America. They hit new record
highs by 2010. "Canada was not a part of the problem," Stephen Harper, the
prime minister, boasted in 2010.








Today the consensus is growing on Bay Street, Toronto's answer to Wall
Street, that Mr Harper may have to eat his words. In response to America's
slow economic recovery and uncertainty in Europe, the Bank of Canada has
kept interest rates at record lows. Five-year fixed-rate mortgages now
charge interest of just 2.99%. In response, Canadians have sought
ever-bigger loans for ever-costlier homes. The country's house prices have
doubled since 2002.








Speculators are pouring into the property markets in Toronto and Vancouver.
"We have foreign investors who are purchasing two, three, four, five
properties," says Michael Thompson, who heads Toronto's economic-development
committee. Last month a modest Toronto home put on the market for C$380,000
($381,500) sold for C$570,000, following a bidding war among 31 prospective
buyers. According to Demographia, a consultancy, Vancouver's ratio of home
prices to incomes is the highest in the English-speaking world.

































Bankers are becoming alarmed. Mark Carney, the governor of the central bank,
has been warning for years that Canadians are consuming beyond their means.
The bosses of banks with big mortgage businesses, including CIBC, Royal Bank
of Canada and the Bank of Montreal, have all said the housing market is at
or near its peak. Canada's ratio of household debt to disposable income has
risen by 40% in the past decade, recently surpassing America's (see chart).
And its ratio of house prices to income is now 30% above its historical
average-less than, say, Ireland's excesses (which reached 70%), but high
enough to expect a drop. A recent report from Bank of America said Canada
was "showing many of the signs of a classic bubble".








The consequences of such a bubble bursting are hard to predict. On the one
hand, high demand for Canada's commodity exports could cushion the blow from
a housing bust. And since banks have recourse to all of a borrower's assets,
and Canadian lending standards are stricter than America's were, a decline
in house prices would probably not wreck the banks as it did in the United
States.








However, the Canadian economy is still dependent on the consumer. Fears
about the global economy have slowed business investment, and all levels of
government are bent on austerity. The Conservative government's next budget
is expected to put forward a plan to close the federal deficit, now 2% of
GDP, by 2015-modest austerity compared to Europe's, but still a drag on the
economy. Few new jobs are being created. Assuming there is no setback in
Europe's debt crunch, slowdown in America or drop in commodity prices, GDP
is forecast to grow by a meagre 2% this year. If consumers start feeling
less well off, Canada could slip back into recession.








The inevitable landing will probably be soft. Increases in house prices and
sales volumes are slowing, and the 2015 Pan American Games in Toronto should
prop up builders. "The national housing market is more like a balloon than a
bubble," says a report by the Bank of Montreal. "While bubbles always burst,
a balloon often deflates slowly in the absence of a 'pin'."








Moreover, the government is trying to cool the market. The banking regulator
is increasing its scrutiny of housing in response to concerns about
speculators. The Canada Mortgage and Housing Corporation, a government
mortgage-insurance agency, says it will have to start reducing its new
coverage because of legal limits. And the finance ministry has cut the
maximum term of publicly insured mortgages from 35 years to 30. Some bank
managers are calling for it to be reduced to 25, the historical norm.
Canada's reputation for financial sobriety is not entirely unwarranted.








However, the state has refused to use its most powerful tool. To protect
business investment, the central bank has made clear that it plans to keep
interest rates low. As long as money stays cheap, the balloon could get
bigger-perhaps big enough to become a fully fledged bubble after all.








from the print edition The Americas

Tuesday, February 07, 2012

Basement Apartments are now legal in Ontario due to Bill 140

Another huge change in Ontario that was just announced is in Bill 140 which has one change in housing.

From now onwards, if a property meets building code and Fire Safety standards, you can legalize any second dwelling in a single family home.

This means that basement apartments have become legal again and this will allow many people who can't afford to purchase a home to get into the market because they can earn income from a basement apartment, legally.

This means the banks will give a mortgage partly based upon current or expected income from the basement apartment and this means that demand will increase and prices will likely follow!


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, February 06, 2012

Prices up about 9% Toronto Real Estate Board January housing figures in the GTA

This is the brief summary of the Toronto Real Estate Board on January housing figures in the GTA

Prices are up about 9% compared to January 2011

Read more below

For all the graphs and details see:

http://www.mississauga4sale.com/TREBprice.htm



GTA REALTORS(r) RELEASE MONTHLY MARKET FIGURES

Greater Toronto REALTORS(r) reported 4,567 sales through the TorontoMLS(r) system in January 2012.

This number was 8.8 per cent higher than the 4,199 sales reported in January 2011.

Sales growth was strongest for low-rise home types in the regions surrounding the City of Toronto. "A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership,"
said Toronto Real Estate Board President Richard Silver. "The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum," continued Silver.

The average selling price for January 2012 transactions was $463,534 - up by almost nine per cent compared to January 2011.

"Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year. Strong price growth is expected to attract more listings.

A better supplied market should result in a slower rate of price growth, especially in the second half of 2012," said Jason Mercer, the Toronto Real Estate Board'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
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Sunday, February 05, 2012

Bank of Canada Prime Interest Rate latest announcement

The Bank of Canada just announced to keep the prime interest rate at 1.0%

This means that the bank prime interest rate charged to customers will remain at 3.0%

The Bank of Canada has announced that the key interest rate will remain at 1.00%

On January 17th the Bank announced:

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

This comes as no surprise as no rate hikes or cuts were anticipated by the vast majority of analysts and financial writer

The next scheduled date for announcing the overnight rate target is 8 March 2012.

The full announcement was:

Ottawa -

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The outlook for the global economy has deteriorated and uncertainty has increased since the Bank released its October Monetary Policy Report (MPR).


The sovereign debt crisis in Europe has intensified, conditions in international financial markets have tightened and risk aversion has risen.


The recession in Europe is now expected to be deeper and longer than the Bank had anticipated in October. The Bank continues to assume that European authorities will implement sufficient measures to contain the crisis, although this assumption is clearly subject to downside risks. In the United States, while the rebound in real GDP during the second half of 2011 was stronger than anticipated, the Bank expects the U.S. recovery will proceed at a more modest pace going forward, owing to ongoing household deleveraging, fiscal consolidation and the spillovers from Europe. Chinese growth is decelerating as expected towards a more sustainable pace. Commodity prices - with the exception of oil - are expected to be below the levels anticipated in the October MPR through 2013.


The Bank's overall outlook for the Canadian economy is little changed from the October MPR. While the economy had more momentum than anticipated in the second half of 2011, the pace of growth going forward is expected to be more modest than previously envisaged, largely due to the external environment. Prolonged uncertainty about the global economic and financial environment is likely to dampen the rate of growth of business investment, albeit to a still-solid pace. Net exports are expected to contribute little to growth, reflecting moderate foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar. In contrast, very favourable financing conditions are expected to buttress consumer spending and housing activity. Household expenditures are expected to remain high relative to GDP and the ratio of household debt to income is projected to rise further.

The Bank estimates that the economy grew by 2.4 per cent in 2011 and projects that it will grow by 2.0 per cent in 2012 and 2.8 per cent in 2013. While the economy appears to be operating with less slack than previously assumed, given the more modest growth profile, the economy is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October.

The dynamics for inflation are similar to those anticipated in the October MPR, although the profile for inflation is marginally firmer. Both total and core inflation are expected to moderate in 2012 and subsequently rise, reaching 2 per cent by the third quarter of 2013 as excess supply is slowly absorbed, labour compensation grows modestly and inflation expectations remain well-anchored.

Several significant upside and downside risks are present in the inflation outlook for Canada. Overall, the Bank judges that these risks are roughly balanced over the projection horizon.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.