CMHC Premiums for home purchase will rise as of May 1

Hello!

 

Part of my job as your realtor is to keep you informed and help you make the best decisions for yourself.

 

Of course, saving money is paramount, so….

 

I wanted you to know about changes that will make it more expensive for anyone buying a home with less than 20% down payment.

In Canada, lenders typically require Buyers with less than a 20% downpayment to pay for mortgage insurance, offered by the Canada Mortgage and Housing Corporation (CMHC).  

The size of the premium is calculated as a percentage of the mortgage and based on the amount of the downpayment - the higher the downpayment, the lower the premium.

On Friday February 28th, CMHC announced that they are increasing CMHC premiums as of May 1st, 2014.

Since most people add the cost of CMHC insurance to their mortgage and pay it over 25 years, the net impact of this increase is estimated to be $5 a month for the average Buyer, however it is important to look at the real-dollar impact of the CMHC increase:

• For a $250,000 mortgage, a Buyer with 5% down will now be paying an additional $1,000.
• For a $450,000 mortgage, a Buyer with 5% down will now be paying an additional $$1,800.
• For a $250,000 mortgage, a Buyer with 15% down will be paying an additional $125.

If you like math, here's the formula for how CMHC Insurance premiums are calculated:

What the Premium Increase Means to the Average Toronto Buyer:

• The higher your downpayment, the less CMHC insurance premium you will have to pay.
• To avoid the increased fee, make sure that your lender submits a request for CMHC insurance for you prior to May 1, 2014.
• The closing date on your new home is irrelevant, but you'll need to have an Agreement of Purchase and Sale in place and have your mortgage in process by May 1, 2014.

What am I really saying?  If you have a 5% downpayment and want to save a couple of thousand dollars, buy a home before May 1st. 

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
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CMHC Reports on GTA housing starts

This graph and text shows that the housing starts in the GTA were up for
most of 2009 and down in November.

New Home Market

Housing Starts Move Lower in

November

Total housing starts in the Greater Toronto Area (GTA) fell to 2,514 units
in November, following three straight months of increases.

Starts so far this year are down by 40 percent compared to the same period
last year, but have shown improvement in the second half. Last month,
single, semi and row starts each rose to their

highest level this year. As a result of the increased demand for low-rise
housing, construction in areas such as Vaughan and Brampton has improved the
most.

The decline in November came as a result of fewer apartment starts, which
tend to show volatility from month-to-month.

Nonetheless, the trend has been moving higher since May and a rebound in new
home sales this year point towards higher starts as we move into 2010.

Rental Market Conditions Soften reports CMHC

This is the latest report from CMHC on rental condtions in the GTA

Rental Market Conditions Soften

The Greater Toronto Area (GTA) rental market experienced softer conditions in 2009. The average vacancy rate for purpose-built rental apartments rose by a full per centage point this year to 3.1 per cent. Several demand and supply factors contributed to the higher vacancy rate, including a rebound in homeownership demand, youth job losses, moderate immigration, more purpose-built rental apartments and a greater number of condominium apartment completions.

Demand Factors

Ownership Demand Rises

A rise in homeownership demand this year has reduced demand for rental accommodations. After starting off the year slow, sales levels in the GTA rebounded quickly over the spring and summer. Sales in both the existing and new home markets will surpass 2008 levels. For the most part, the past decade has shown us a positive relationship between homeownership demand and rental vacancies – when sales go up, vacancies rise as well.

A major reason for the shift towards owning this year is due to improved affordability conditions. Thanks to very low borrowing costs, the average monthly mortgage payment for a home in the GTA is down compared to 2007 and 2008. This has reduced the fi nancial commitment for households to move from renting to owning this year, prompting more renters to make their fi rst home purchase.

Information gathered from CMHC’s Renovation and Home Purchase Survey confi rms that a greater number of fi rst-time buyers are entering into homeownership as a result of the improved affordability conditions. First time buyers represent 57 per cent of intending purchasers this year versus a 33 per cent share that bought in 2008.

Younger Workers Lose Jobs Employment losses this year have mostly affected younger workers.

Since the average age of a fi rst-time buyer in Toronto is approximately 35, rental demand is largely driven by the under 35 workforce. Census data indicates that a quarter of younger workers in Toronto are employed in the manufacturing and retail trade sectors. The manufacturing sector has shed nearly 75,000 jobs this year while employment within the retail trade sector has been trending down for some time.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
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• Would you like me to send you a 2010 Calendar?

GTA Toronto Apartment Vacancy Rate CMHC

This is the latest information from CMHC on apartment vacancy rates in the GTA

Highlights

􀂄 The average apartment vacancy rate in the GTA increased to 3.1 per cent in 2009.

The average fixed sample rent for a two-bedroom apartment rose by 2.1 per cent.

􀂄 Renter demand moderated due to improved homeownership affordability and a soft youth labour market.

􀂄 The vacancy rate will edge up to 3.3 per cent next year as improvements in renter demand will be outweighed by a rise in rental supply.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?


• Power of Sales and Foreclosures


• 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


• See seasonal housing patterns


• Would you like me to send you a 2010 Calendar?

CMHC on the New Home Market

This is the latest news from CMHC on the New Home Market

Housing Starts Continue to Rise in October

Total housing starts in the Greater Toronto Area (GTA) reached 3,606 in October, the highest level so far this year. Despite the rise in October, year-to-date housing starts are off 42 per cent compared to the same period last year.

Housing starts spiked in 2008 thanks to strong demand for condominium apartments in the 2005- 2007 period, which dampens annual growth comparisons for total starts this year.

Semi-detached homes have proved most resilient in 2009, with year-to-date starts down by a much more moderate 14 per cent.

Housing starts have risen for the third consecutive month in the GTA.

Gains in the apartment segment – both condominium and rental – have led the increase in recent months.

Rental apartment starts this year are nearly twice the level reached in 2008. On the condominium side, improving economic and credit market conditions are beginning to help larger projects get off the ground.

Strong sales levels in the new home market over the past few months will add momentum to housing starts in the GTA going forward.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?


• Power of Sales and Foreclosures


• 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


• See seasonal housing patterns


• Would you like me to send you a 2009 Calendar?

This is CMHC's prediction in detail and forecast for Ontario resale and new homes

This is CMHC's prediction in detail and forecast for Ontario resale and new homes
Enjoy,
Mark

Ontario Overview

Ontario’s economy will gradually recover later this year and will grow by 2.2 per cent in 2010. Key to a sustainable Ontario economic recovery is improving US business and consumer spending and a pickup in provincial exports which comprise a sizable share (55%) of Ontario’s GDP. Meanwhile, U.S. consumer rebate programs for housing and motor vehicles will help stabilize output in key Ontario forest product and auto sectors. While employment will moderate in 2009, recent business outlook surveys indicate that employers expect a pickup in demand for their products. Overall, a gradual recovery in Ontario labour markets can be expected as companies look to replenish inventories through 2010.

Stronger labour markets in 2010 will lend some support to Ontario economic growth.

Despite a slow start to 2009, Ontario new home construction will strengthen to reach 47,400 units in 2009 and 56,500 units in 2010.

A gradually improving provincial economy, improved financial market conditions and declining new home inventories will support housing activity next year. However, less pent-up demand and cautious consumer spending resulting from modest employment and personal income gains are factors that will temper the Ontario housing market. Starts will move closer to overall levels of demographic demand by 2011.

In Detail

Single Detached Starts: Single starts have begun to recover and will continue to trend higher until the mid point of 2010. Single starts will be 20,900 this year and 23,600 units next year, thanks to improving economic conditions and declining inventories.

As home prices and mortgage carrying costs rise, demand for more expensive housing will moderate in the second half of 2010.

Multiple Starts: Multi-family home construction will grow to reach 26,500 units this year and 32,900 units for 2010. Construction will be boosted by semi-detached and townhome starts, which represent a more affordable option, particularly when home prices are rising. A backlog of apartment unit sales that have yet to commence construction, combined with low rental apartment vacancy rates, will also support the construction of multi-family units.

Resale's: Ontario existing home sales have staged a strong come back since the early part of the 2009. Sales this year will reach 183,900 units and will be on par with activity in 2008. The strong pace seen in recent quarters reflects, in part, improved affordability conditions. Also, home purchases that were delayed during the onset of the global downturn last fall are now going forward. The level of sales will not likely be sustained and will move better in line with economic fundamentals. Home sales will stabilize and will reach 175,250 units in 2010.

Prices: After experiencing buyers market conditions in early 2009, Ontario resale markets have tightened and balanced market conditions will be restored. As a result, Ontario existing home MLS® prices will grow to $314,550 this year and to $326,800 next year.

Forecast

The point estimate for provincial total housing starts is 47,400 for 2009 and 56,500 for 2010. Economic uncertainty is reflected by the current range of forecasts which varies from 46,250-48,700 units for 2009 and 45,400-65,500 for 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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

National Housing Outlook In Detail

This is another in a series of articles from CMHC talking about the country and the housing outlook

National Housing Outlook In Detail

While activity has picked-up in recent months, when compared to low levels in the first half of 2009, housing starts will still decrease to 141,900 units this year compared to 211,056 in 2008.

Housing starts will increase to 164,900 in 2010 as the economy strengthens. Given the degree of economic uncertainty, we have considered an array of economic
scenarios to generate a range for the housing outlook in 2009 and 2010.

Accordingly, we expect starts to be between 138,000 and 146,000 units in 2009 and between 135,000 and 190,000 units in 2010.

Housing starts were down in most provinces in the first half of 2009, however, activity is beginning to rebound and will continue to do so in the remainder of 2009 and into 2010.

Nevertheless, housing starts are forecast to decline in all ten provinces in 2009. Moving forward to 2010, growth will turn positive in nearly all provinces, with Western Canada leading the way.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Single-detached starts to move higher in 2010

This is CMHC's prediction for the 2010 detached housing market, interesting to say the least!

Mark

Single-detached starts to move higher in 2010

Strong price growth in the past few years for single-detached housing has moderated the demand for this type of housing, and increased demand for less expensive multi-family housing.

The uncertain economic environment in late 2008 and early 2009 contributed to the downward trend in single starts. By the second quarter of 2009, however, single starts rebounded in most provinces.

Over the forecast horizon, this trend is expected to continue as more moderate prices make the singles market more attractive. After declining to 70,350 units in 2009, the number of single-detached housing starts will increase to 79,700 units in 2010.

By and large, starts of single-detached housing will continue to recover in the second half of 2009. Moving into 2010, all provinces will see an increase in the number of single-detached starts. In British Columbia, here employment growth is expected to be the strongest in the country, starts of single-detached homes will move up to 8,400 units, the largest percentage increase in the country for 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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

CMHC predictions on Mortgage Rates, Employment, Income, Net Migration, Natural Population Increase, Resale Market and Vacancy Rates

How do these 6 important key indicators affect our economy and what does CMHC predict for each of the next year, very interesting reading!

Mark

1. Mortgage Rates
2. Employment Income
3. Net Migration
4. Natural Population Increase
5. Resale Market
6. Vacancy Rates

Movements in mortgage rates are difficult to predict due to uncertain economic conditions. Nevertheless, rates are expected to remain steady this year and gradually rise over the course of 2010. Mortgage rates will remain very low in a historical context.

Due to the economic downturn of 2009, employment is expected to decrease this year. However, 2010 should see economic conditions improve, which will help employment turn back up in 2010.

Over the past few years, tight labour markets have put strong upward pressure on personal income growth. For 2009, softer labour markets will cause growth in wages and incomes to moderate. In 2010, income growth will strengthen, along with economic activity.

Net migration is forecast to decrease from record levels in 2008, but will remain relatively high. An improving job market will favour an increase in net migration for 2010.

The low birth rate is the major factor in the slowing of growth in the natural population (births minus deaths). This will lessen the demand for additional housing stock in the medium and longer term.

Sales on the existing home market have rebounded in 2009, which has caused markets to move from buyers’ to sellers’ conditions. While MLS® sales are expected to moderate from the near-record levels of the second and third quarters of 2009, sellers’ markets conditions will put upward pressure on house prices in 2009 and 2010.

Increased competition from the condo market and modest rental construction will be partly offset by rental demand. As a result, vacancy rates across

Canada’s metropolitan centres will remain relatively stable this year and next.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

CMHC's predictions on mortgage rates

This is CMHC's prediction on mortgage rates in 2010

Trends Impacting Housing

Mortgage Rates

The Bank of Canada cut the Target for the Overnight Rate in the early months of 2009. The rate was 1.50 per cent at the start of 2009 and has since fallen to 0.25 per cent. The Bank has committed to keeping this rate at 0.25 per cent through the middle of 2010, unless inflationary pressures warrant an increase.

Mortgage rates have fallen over the course of 2009, but are now expected to remain relatively stable for the rest of the year.

Posted mortgage rates will gradually increase through 2010, but will do so at a slow pace.

For 2010, the one-year posted mortgage rate will be in the 3.50-4.25 per cent range, while three and five-year posted mortgage rates are forecast to be in the 4.50-6.00 per cent range.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Sellers' market conditions are supporting stronger house prices

CMHC is predicting a strong market for sellers in 2010

Sellers’ market conditions are supporting stronger house prices

The resale market began 2009 in buyers’ market territory in most markets across Canada. Slowing sales at the end of 2008, coupled with higher levels of new listings, moved many markets away from the sellers’ conditions that have been dominant over the past few years and into buyers’ market territory.

However, in recent months new listings have slowed while sales have increased.

This has moved many markets back into either balanced or sellers’ market conditions. Heading into 2010, balanced to sellers’ market conditions will continue to support growth in house prices.

The outlook for the national MLS® price will be affected by the swing in market conditions as well as changes in the geographical composition of sales.

In 2008, sales in Canada’s more expensive housing markets fell at a faster pace than other centres and this led to a sharp decline in the Canadian average MLS® price. In recent months though this trend has reversed, resulting in strong price increases in the second and third quarters of 2009. As a result, the average MLS® price in Canada will increase by 3.1 per cent to $312,950 in 2009 and by 3.7 per cent to $324,500 in 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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

CMHC housing report for Country and Ontario

This is the latest housing report from CMHC and it indicates that resale prices moderated in 2008 but were strong in 2009

Housing starts: After a slow start in 2009, housing starts will become stronger by the end of 2009 and average 141,900 units. In 2010, starts will increase to approximately 164,900 units.

Resales: Sales of existing homes through the Multiple Listing Service® MLS®) have become more robust since the start of 2009. The strong pace of resales reflects , in part, activity that was delayed in the previous two quarters of 2009 and is likely not to be sustained. MLS® resales will be about 441,300 units for 2009, up from 433,990 units in 2008.

As far as 2010 is concerned, there will be approximately 445,150 units sold.

Resale prices: After a few years of strong gains, the average MLS® price moderated in 2008 to $303,607.

Recently, however, average prices have recovered. The average MLS® price is expected to increase to $312,950 in 2009 and to $324,500 in 2010.

Ontario: New home construction in Ontario will move lower to 47,400 units in 2009 while 2010 will see a strong improvement to 56,500 units.

Multiple-family starts will decrease in 2009 to 26,500 units before reaching 32,900 units in 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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

Current mortgage interest rates in Toronto area plus incentives offered by CMHC

These are the current mortgage rates in the GTA and some incentives offered by CMHC

Here are some of our current promotions and rate sheet:

CIBC's up to 7% Cashback: can be use as a down payment up to 100% financing.
CIBC $500 Cashback for First time home buyer

And more...

Rate sheet:
Variable closed 2.35% prime + .10%
Fixed:
1 Year/ 2.70%
2 Year/ 3.60%
3 Year/ 3.70%
4 Year/ 3.69%
5 Year/ 3.84%

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

CMHC predictions on the New Home Real Estate Market

These are the comments made by CMHC on the New home real estate market.
New Home Market Sales Will Decline

The Greater Toronto Area (GTA) new home market will experience a slower pace in activity during 2009. Total new home sales are expected to drop to 15,500 units this year from 28,000 sales reached in 2008.

Pre-construction high-rise sales will reach 7,000 units while low rise sales are expected to hit 8,500 units in 2009, resulting in an increased share of new home sales in the low-rise segment for the first time in six years.

Softening resale market conditions have resulted in an increased supply of lower priced resale homes in many GTA neighbourhoods. Discerning buyers will be able to purchase homes at significantly lower prices in the resale market than in the new home market. Reduced pre-construction sales centre traffic will be the result. This substitution effect will slow price growth in the new home market in 2009 — the average price for a new single detached home will slip by about two per cent to $512,000.

Sales of high rise units will account for about 45 per cent of total sales this year, down from 55 per cent in 2008. While fewer projects are likely to open this year, reducing the total number of condominium units available for sale, project launches and sales are expected to pick up during the latter part of 2009.

Improved financing conditions and lower construction costs passed on by builders will bring more competitively- priced units to the market.

Steady immigration to Toronto and favourable demographic shifts will continue to play a major role in increasing demand for new condominium apartments. Lower prices for condominium apartments are especially attractive to newcomers to Canada looking for an entry point into homeownership.

An aging baby boomer population gearing up for retirement will also look towards this housing sector as they look to downsize and minimize housing maintenance.

A compositional shift in Toronto’s employment landscape will further add to demand for more affordable housing. Job losses in the goods-producing sector will mean GTA housing demand will rely more heavily on employment in the lower paying services industry.

I hope this finds you Happy and Healthy!

All the Best!

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : 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 ?
• Power of Sales and Foreclosures
• 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
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?