Thursday, June 12, 2008
More predictions from CMHC on our futurereal estate market
Higher mortgage carrying costs will be a catalyst for the decrease in residential construction to 214,650 units in 2008.
Seven of the ten provinces will register a lower number of housing starts in 2008 than in 2007. Housing starts, will reach 199,900 units in 2009.
MLS®1 sales to pull back from record in 2007
Record MLS® sales in 2007 Existing home sales, as measured by the Multiple Listing Service (MLS®), are expected to fall by 8.5 per cent in 2008 to 475,900 units.
In 2009, the trend will continue with a decrease to 465,000 units (-2.3 per cent). Despite a slowdown of MLS® sales, demand remains strong by historical standards.
So there you have it from CMHC
Mark
Wednesday, June 11, 2008
Canadian Home Building Boom is Coming Back to Earth!
Canadian Home Building: Back to Earth
On the heels of one of the best quarterly performances in the past 20 years in Q1, Canadian housing starts came down to earth in April with a tally of 213,900 units (at an annualized rate). Above-expected results in February and March had flown in the face of signs of moderation in the housing sector in recent months, including a softening trend in building permits. Therefore, it wasn't a complete surprise that, this time, starts undershot consensus expectations.
In April, the weaker tone was evident virtually across the board, both on a major segment and regional basis (with a few provincial exceptions). The multi-unit segment, which had been particularly strong in the previous two months (second and third highest tallies since 1978), gave back the most. However, activity in this segment remained relatively healthy, holding above its 12-month average.
The single-unit segment fell to its lowest level in seven years, accelerating its downward trend since 2004. Singles have been historically a better indicator of the sector's overall direction, so this should raise a red flag.
Regionally, starts slipped in all provinces except B.C., Manitoba and P.E.I. In the case of B.C., the increase was only a partial retracement of an outsized drop in March. Starts in that province remained below their 12-month average in April.
The biggest declines in percentage terms occurred in Nova Scotia, Newfoundland & Labrador and Alberta, although all of them represented payback for spikes the previous month. Despite falling for the second straight month, the pace in Ontario remained solid.
The Bottom Line: With growing signs that deteriorating affordability and mounting economic uncertainty are cooling residential real estate markets in many parts of Canada, it's only natural that new home building also moderates. While a U.S.-style meltdown is unlikely on this side of the border, the faster decline in singles starts in the past several months is cause for close monitoring.
- Interest Rates
- Power of Sale Properties
- Price Trends
- or Search the MLS and more at my website
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
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com
- Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Bank of Canada keeps overnight rate target at 3 per cent
Bank of Canada keeps overnight rate target at 3 per cent
OTTAWA – The Bank of Canada today announced that it is maintaining its target for the overnight rate at 3 per cent. The operating band for the overnight rate is unchanged, and the Bank Rate remains at 3 1/4 per cent.
Since the April Monetary Policy Report (MPR), economic developments have been broadly in line with expectations. However, the balance of risks to the Bank's April projection for inflation in Canada has shifted slightly to the upside. Although the composition of U.S. growth has not been favourable for demand for Canadian goods and services, overall, global growth has been stronger and commodity prices have been sharply higher than expected. At the same time, many of the downside risks to inflation identified in the April MPR have eased, while the evolution of credit conditions has been in line with expectations. The risk remains that potential growth will be weaker than assumed.
With the decline in first-quarter GDP, the Canadian economy is judged to have moved into excess supply, which is expected to increase this year. Consistent with the April MPR, the Bank continues to project that economic growth will pick up this year and accelerate in 2009, owing in part to a firming of U.S. demand and accommodative monetary policy in Canada.
If current levels of energy prices persist, total CPI inflation will rise above 3 per cent later this year. However, with the Canadian economy operating in excess supply, core inflation is expected to remain below 2 per cent through 2009. Both total and core inflation should converge on 2 per cent in 2010 as the economy returns to balance.
Against this backdrop, the Bank now judges that the current stance of monetary policy is appropriately accommodative to bring aggregate demand and supply into balance and to achieve the 2 per cent inflation target. There continue to be important downside and upside risks to inflation in Canada, which the Bank will monitor closely.
See the current rates here: http://www.mississauga4sale.com/Rates-Current-Posted-Mortage-Interest-Rate.htm
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 ?
- 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 2008 Calendar?
Tuesday, June 10, 2008
REMAX reports that balance returns to recreational property markets
Balance returns to recreational property markets
across Canada this year, says RE/MAX
Mississauga, ON (June 10, 2008) --
After an extended period of extraordinary growth, more balanced
market conditions have emerged in recreational property markets across the country, according to a report
released today by RE/MAX.
The RE/MAX Recreational Property Report found that a substantial increase in the supply of recreational
properties listed for sale, combined with fewer buyers overall, characterized most recreational markets
this year. Of the 45 markets surveyed, 91 per cent (or 41 markets) were in the transition stage, moving
from strong sellers into balanced market conditions. The only exceptions were Salt Spring Island, two
markets in Saskatchewan—Last Mountain Lake and Qu'Appelle Lakes and Lakes Candle, Emma, and
Waskesiu -- and Newfoundland's East Coast —where inventory levels were relatively low. Affordability
was a primary factor in 35 per cent of markets surveyed, given serious upward pressure on recreational
values in recent years.
"Market conditions have shifted, but don't expect to see bargain basement prices or fire sales," says
Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada.
"The recreational market continues to experience solid demand -- a trend that is expected to continue
throughout 2008. The influx of new listings has yet to translate into downward pressure on recreational
property prices. Prime waterfront properties, while more plentiful than in year's past, will still command
top dollar."
Adverse winter weather conditions during the first four months of the year hindered recreational activity.
Sixty-seven per cent of markets reported softening in the number of sales year-to-date, while average
prices remained stable or experienced moderate increases over 2007 levels for the same period. Economic
concerns, fueled by negative GDP growth in the first quarter and soaring energy costs, have also played a
role in the transitioning market.
"We're coming off the longest period of economic expansion since World War II," says Elton Ash,
Regional Executive Vice President, RE/MAX of Western Canada. "Recreational property values have
appreciated beyond our wildest dreams across the country. More balanced market conditions are a
welcome change for purchasers."
- more -
RE/MAX Recreational Property Report…2
For the first time in many years, in fact, a good selection of entry-level waterfront is available in markets
across the country. Eighteen per cent of those surveyed offer properties under the $200,000 price point,
including; Central South Cariboo in British Columbia; Parry Sound, East Kawarthas and Kingston in
Ontario; Summerside, PEI; South Shore, Nova Scotia; Shediac, New Brunswick; and the East Coast of
Newfoundland.
Recreational property buyers also found themselves divided between two borders this year. The housing
market meltdown in the US combined with a Canadian dollar at par created serious investment
opportunities for secondary properties in Florida, Arizona, Texas, and California. Some of those very
same factors have spurred American recreational property owners in Canada to list their properties for
sale, with many looking to take advantage of ideal market conditions here.
"Many Canadians are capitalizing on market conditions in major American centres," says Polzler. "For
some purchasers, the move is strictly a short-term investment strategy with a pay-off at the end of the day,
while for others, retirement is the main objective."
The report also found that younger buyers were a factor in 40 per cent of recreational markets surveyed.
"Baby boomers are clearly not the only purchasers that appreciate the recreational lifestyle," says Ash.
"Generation X is quickly becoming a force in the marketplace, spurring demand for condominium
product on ski hills, oceanfront properties in good surf locales, and water frontage on trendy lakes with
celebrity residents."
Other highlights
:
Alberta's red-hot economy has helped boost recreational property markets in British Columbia,
Atlantic Canada, and some parts of Ontario.
Affordability is prompting buyers to consider back lots, riverfront, condominiums, hobby farms
and leased land.
Some purchasers looking to secure an exit strategy are buying recreational properties or
secondary homes in residential neighbourhoods in close proximity to the water's edge.
RE/MAX is Canada's leading real estate organization with over 18,000 sales associates in more than 656
independently-owned and operated offices. The RE/MAX franchise network is a global real estate
system operating in over 65 countries. More than 7,000 independently-owned offices engage over
110,000 member sales associates who lead the industry in professional designations, experience and
production while providing real estate services
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 ?
- 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 2008 Calendar?
Spring 2008 Housing Market Outlook for the GTA
Here are some highlights:
"More home buyers will meet their housing needs through the purchase of an existing home, in response to increasing choice in the resale market, as the gap between listings and sales widens. Generally speaking, when there is more choice in the resale market, fewer buyers will opt to purchase a home at the pre-construction stage of development and wait for completion a year or more into the future"
- Interest Rates
- Power of Sale Properties
- Price Trends
- or Search the MLS and more at my website
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
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com
- Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
- On-Line Real Estate Newsletter sign up
- See seasonal housing patterns
Monday, June 09, 2008
Home in Peel Affordable Ownership Program
Home in Peel Affordable Ownership Program
Below is a link to a program offered by the Region of Peel to assist eligible home buyers who have a total annual income of $62,600 or less to purchase a resale home in the Region of Peel (Brampton, Caledon or Mississauga) that does not exceed a purchase price of $208,000.
I thought that this may be of interest to potential buyers.
http://www.peelregion.ca/housing/home-in-peel/
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 ?
- 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 2008 Calendar?
Canada Real Estate Practices
Canada Real Estate Practices
Overview
Canadian real estate agents work in much the same way in all of the provinces and territories. However, educational and licensing requirements vary provincially and agents are licensed by their provincial regulators.
The majority of Canadian real estate agents are Realtors®- i.e. are members of the Canadian Real Estate Association (CREA). Canadian Realtors place almost all of their property listings on the Multiple Listing Service (MLS), and as a result property listings are available to view by all Realtors in the marketplace.
Both the Land Titles (
Real Estate Practices
Generally speaking, one Realtor will act on behalf of a seller and another will represent a buyer. Sellers typically pay the broker's commission and costs relating to the closing. Legal fees are shared by the buyer and seller.
The Realtor will draft the Contract of Purchase and
Mortgages are commonly used to purchase real property and second, third and fourth mortgages are permissible in
Interest paid on a mortgage in
The closing process typically occurs less than 60 days following execution of the contract on resale property. Although there is no legal requirement to do so, the closing usually occurs through both the buyer's and seller's legal counsel.
All Realtors in
Capital gains is payable on homes sold by non-residents. A capital gains tax of 25% is charged on the gain and, if not paid, the buyer's Realtor must withhold anywhere from 20 to 25% of the total sales price from the seller in order to ensure payment is made.
Read more about relocaiton: http://www.mississauga4sale.com/relocation.htm
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 ?
- 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 2008 Calendar?
Sunday, June 08, 2008
2008 Mortgage Rates
2008 Mortgage Rates
With the Bank of Canada interest rate decision coming up next week, mortgage rates are a hot topic at the moment. The CMHC has just reported that posted mortgage rates eased by about 50 basis points in the first four months of 2008, although rates in late April were 30 to 35 basis points higher than they were 12 months prior. Mortgage rates are expected to trend marginally lower throughout 2008, but will be within 25-50 basis points of their current levels.I came across a handy site that is useful They compare over 500 Canadian mortgage rates from banks to brokers and showed that best current 1 year closed fixed rate was 6.05%.
It will be interesting to see what the Bank of Canada does next week.
Cheers,
Mark
Friday, June 06, 2008
Current Mortgage Interest Rates across the GTA
TERM | POSTED | OUR RATES* |
6 Month | 6.20% | 6.20% |
1 Year | 6.15% | 4.65% |
2 Year | 6.15% | 4.90% |
3 Year | 6.15% | 4.99% |
4 Year | 6.59% | 5.25% |
5 Year | 6.65% | 5.24% |
7 Year | 7.40% | 5.80% |
10 Year | 7.75% | 5.90% |
Variable Rate | 4.00% | |
Prime Rate | 4.75% |
Enjoy the heat this weekend!
Mark
- Interest Rates
- Power of Sale Properties
- Price Trends
- or Search the MLS and more at my website
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
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com
- Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
- On-Line Real Estate Newsletter sign up
- See seasonal housing patterns
Thursday, June 05, 2008
Steady GTA Resale Housing Market in May
TORONTO, June 4, 2008 -- The Greater Toronto Area resale housing market recorded 9,411 transactions in May, Toronto Real Estate Board President Maureen O’Neill announced today.
On a year-over-year basis the GTA average price increased four per cent to $398,148 in May from the May 2007 average of $382,787. Prices increased three per cent in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 Region there was a five per cent increase to $374,629 from $355,341 last May.
“Price gains show that real estate continues to be a solid investment for the consumer,” said Ms. O’Neill. “We are confident about the market because employment in the GTA continues to be strong and interest rates remain low. As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable.”
“May’s sales figures represent a 16 per cent decline in the GTA from the record month a year ago when 11,146 sales were recorded,” said Ms. O’Neill. “More than 9,000 properties changing hands still represents considerable market activity.”
In the City of Toronto, there were 3,711 sales, down 19 per cent from last May’s 4,578 sales and down 6 per cent from May 2006. In the 905 Region, 5,700 transactions were recorded, which represents a 13 per cent decline from the 6,568 sales during the same period a year ago but up 4 per cent from May 2006.
“The Toronto Land Transfer Tax has been in effect for four months and the decline in sales has been running for the same time period,” said Ms. O’Neill. “We’re keeping a close watch on the effect of this new tax.”
Two specific areas North of Toronto experienced increased sales activity in May. In Uxbridge (N16) sales were up 10 per cent, while Stouffville (N12) saw a 12 per cent increase in sales, driven mainly by detached home transactions.
Read More: http://www.mississauga4sale.com/TREBprice.htm
- Interest Rates
- Power of Sale Properties
- Price Trends
- or Search the MLS and more at my website
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
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com
- Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
- On-Line Real Estate Newsletter sign up
- See seasonal housing patterns