RBC reports that Fears of U.S. recession fading; Canada’s terms of trade boost continues

Fears of U.S. recession fading; Canada's terms of trade boost continues

The economy continued to expand in the first quarter, but posted the weakest six-month growth rate since 2003. The economy is

expected to remain weak, but market forecasters see reduced odds of a recession despite higher-than-expected energy prices.

Risks of a second-quarter contraction are lessening as the early wave of fiscal stimulus cheques may give consumer spending a

boost and keep the economic growth numbers positive.

The elevated inflation rate as a result of high energy and food prices threatens to boost inflation expectations.

Oil prices are expected to trend lower through the forecast period.

The Fed is likely the hold the policy rate steady for the remainder of this year.

Canada's economy contracted in first quarter as special factors and inventories dragged the growth rate down, but domestic demand

is holding up and will more than offset the significant drag from net exports this year.

Import growth will remain robust, but flagging U.S. demand will weigh on export volumes.

High commodity prices and the attendant rise in terms of trade will support real income growth and jobs.

Consumer spending has slowed from its robust 2007 fourth-quarter pace but will still remain a key support for the economy in

2008.

Business investment will continue to be a strong support to the economy as the high Canadian dollar lowers prices of imported

machinery and equipment, and high commodity prices will warrant an increase in capacity.

Canada's housing market is losing steam but is not headed for U.S.-style crash.

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

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RBC reports on Ontario — A two-tiered economy

Ontario — A two-tiered economy

The first-quarter national accounts for Canada provided quite possibly the first
"hard" evidence that a downbeat scenario is, indeed, unfolding in Ontario. The
unexpected decline in Canadian real GDP most likely captured a sizeable economic
contraction in Ontario with the international trade sector delivering much
of the bad news.

Early this year, Ontario's exports were pounded by the high
Canadian dollar and the downturn in the U.S. economy, as well as by a strike at
a major U.S. motor vehicle parts manufacturer that disrupted Ontario's auto
production. Poor weather conditions also caused some disruptions.
Going forward, the spotlight will remain on the external sector. With the high
dollar and sluggish U.S. economy still hindering manufacturing sales abroad,
net trade should continue to subtract from growth in the near-term, although the
impact is likely to taper off gradually as some of the factors that restrained firstquarter
growth prove to be temporary.

Little improvement is expected in the allimportant
auto sector – plummeting motor vehicle sales (particularly of light
trucks) in the United States and ongoing restructuring in the "Big 3" North
American producers imply continued hard times. Excluding this sector, however,
Ontario exporters should feel some relief later this year and in 2009 from a
projected easing in the Canadian dollar and reacceleration of growth in the U.S.
economy.

As tough as conditions are on the external side, the story on the domestic
economy is more encouraging. Construction is holding up better than expected
and growth in consumer spending continues to be supported by a still-robust
labour market.

Despite the carnage in manufacturing jobs, total employment in
the province is still growing at a decent clip, enough to keep the unemployment
rate near a seven-year low. While the risk of the external weakness spilling over
into the domestic side is not trivial, the domestic underpinnings remain relatively
solid and should allow the overall economy to navigate through the headwinds,
keeping growth in positive territory.

Nonetheless, at 0.7% this year, our
forecasted growth rate would be the weakest since the last recession in the early
1990s.

Read more about:

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• Power of Sale Properties
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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

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RBC reports that the US is Not out of the woods yet!

Not out of the woods yet!

Most news about the U.S. economy has tended to be on the strong side of
expectations, but one key item suggests that the economy is not out of the
woods yet. The April survey of senior loan officers at 56 domestic banks and 21
U.S. branches of foreign banks showed that lending standards continued to
tighten early in the second quarter. Fifty-five percent of respondents at domestic
banks indicated that their institutions had tightened lending standards for
commercial and industrial loans, up from 30% in January. This, historically, has
presaged a significant slowing in industrial production, spending on machinery
and equipment, and cuts to payrolls.

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
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RBC comments on US Housing market — No relief

Housing market — No relief

The U.S. housing market recession continues in full swing, with home sales
running at least 20% slower than a year earlier, prices posting significant yearover-
year declines and the stock of homes for sale holding well above historical
norms. Residential investment fell at a 24.6% annual rate in the first quarter after
plummeting 25.2% in the fourth quarter of 2007 and subtracted a sizeable 1.1 percentage points from economic growth in the first quarter of 2008.

Foreclosures
were up in April and delinquencies are continuing to rise. Our forecast
assumes that the recession in this sector will continue through 2008. In 2009, the
combination of lower interest rates and lower house prices is expected to reduce
the inventory of homes for sale to more normal levels, which should put a floor
beneath new home construction after three years of significant declines.

Mark

RBC comments on Canadian Housing market losing its edge but not headed for a crash

Housing market losing its edge but not headed for a crash

Canada's resale housing market showed signs of slowing early in the second
quarter with sales off 1% from the first quarter of 2008 following three consecutive
quarterly declines. However, sales continue to run well above the average
pace of the past 20 years. While strong demand boosted prices, with gains of at
least 10% in the past six years, the pace slowed to 3.2% in April.

In contrast, new listings picked up in the first quarter and this trend continued into April, with
listings in the major markets up 17.7% compared to a year earlier. Slowing in the
housing market was expected and, to some degree, desired because affordability
had been increasingly strained through 2007, with most major markets seeing
affordability deteriorate to its worst levels since the early 1990s.

On the supply
side, the high level of demand continues to support construction activity with
housing starts running at an historically fast rate. The structural backdrop to
Canada's housing market remains solid, with very limited sub-prime mortgage
activity, a relatively small speculative sector and no significant supply overhang
despite robust construction activity.

Affordability is also forecast to improve
this year, with the Bank of Canada having cut the overnight rate by 150 basis
points since last December, mortgage rate spreads showing some signs of narrowing
and the pace of house price gains slowing.

Read more about:

• 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
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Mississauga Real Estate Current Mortgage Interest rates

These are the Mississauga Real Estate Current Mortgage Interest rates

TERM	POSTED	OUR RATES*
6 Month	6.2%	6.2%
1 Year	6.95%	5.05%
2 Year	7%	5.25%
3 Year	7%	5.14%
4 Year	6.99%	5.54%
5 Year	7.15%	5.37%
7 Year	7.6%	5.8%
10 Year	7.95%	5.9%
Variable Rate		4%
Prime Rate		4.75%

* Rates may vary provincially and are subject to change without notice.
Rates Last Updated: Thursday, July 31, 2008

---

Read more about:

• 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
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Market slow down or stabilization?

Hello,

I hope you are enjoying your summer and have taken time for vacation and relaxation.


Let me ask you this. Is the market slowing down? Or is it just stabilizing? 2007 was a record year for home sales in Canada with 520,192 sales through MLS. We really can't get spoiled and expect it to always be increasing at the same rate. So what is expected for 2008? The expected number of sales through MLS for 2008 is 476,000 units representing a decrease of 8.5% from 2007. In 2009, that number is expected to drop another 2.3% to 465,000 units.

The fact is, the economic fundamentals in Canada remain strong. We have a very high employment rate, rising incomes as a whole, and low mortgage rates. This represents a strong foundation for a solid housing market. Now, this is expected to trend downwards slightly over the next year and a half, but it is no where near as bad as some people make it out to be.

Overall, the market is still relatively healthy. The average price of resale homes grew by 11% in 2007 and is expected to grow another 5.5% in 2008 and 3.3% in 2009, keeping the average MLS sale above the inflation rate. While the growth is slowing as the market stabilizes, it is important to keep in mind that it is STILL GROWING and DEMAND IS STILL STRONG by historical standards. Mortgage interest rates are expected to stay low through the end of 2009 with possible increase of only 25 to 50 basis points (1/4 to 1/2%) by the end of next year.

The reasons for the stabilization are of course, tied to the US market, as well as increasing carrying costs due to home inflation. I am not going to say that the market or economy isn't slowing. It is. It is unrealistic to think that it will always stay at the same pace.

Our economic growth is expected to slow to 1.8% in 2008, pick up to 2.3% in 2009 and by 2010 we are expected to be at 3.3%. Income levels are still increasing nicely, migration is still very strong and overall consumer confidence is still high as a whole, all fueling a strong market.


Source for the above numbers: CMHC and Bank of Canada.

On another note, The Bank of Canada had their rate meetings today and there has been no change to the prime rate. Their next meeting is September 3rd. Today's low 5 year fixed rate remains at 5.45% and the variable at 4.15% (with teaser variable rates available as low as 2.24%).


Please let me know if I may be able to help you with anything to do with real estate,
Mark

Where is our market heading?

If you're thinking of moving this year, you'll be glad to hear that the forecast for the Canadian real estate market continues to look positive for 2008. The Canadian economy continues to thrive with a high employment rate, a strong dollar and a relatively low cost of borrowing. In fact, more ?rst-time purchasers are expected to take advantage of the reasonably low mortgage rates, longer amortization periods and subsequently more affordable monthly mortgage payments.

If you've been holding off making a move, wondering if Canada will follow in the turmoil of the U.S. real estate market, rest assured that the problems stemming from the U.S. "subprime meltdown" do not necessarily apply to the Canadian real estate market. For one thing, the mortgage products offered in Canada are different than those offered to our neighbours to the south. In addition, our sub prime market is just a small part of our mortgage market, so the extent of any problems within that market do not affect our overall economy as in the United States.

Local conditions vary, even within a given area, so it's important that you consult a real estate professional familiar with the specific nuances of your neighbourhood for the local real estate climate.

As a real estate sales representative, I invite you to call me to discuss your plans for any upcoming moves. If you're not planning a move at this point but know of someone who is, I would appreciate your passing my contact information on to that person, and to your friends and relatives too.

To see a graph of how the spring market sales increase, please browse to this page:

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

Enjoy the nice weather we are experiencing!

Mark

Mortgage interest rates in Mississauga Real Estate

Current mortgage interest rates in the Mississauga area

Terms Posted Rates Our Rates 1 YEAR 6.95% 5.05% 2 YEARS 7.00% 5.25% 3 YEARS 7.00% 5.25% 4 YEARS 6.99% 5.50% 5 YEARS 7.15% 5.24% 7 YEARS 7.60% 5.80% 10 YEARS 7.95% 5.90% Rates are subject to change without notice. *OAC E&OE

• 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?

Trends in Seniors Housing

Current and Future Trends in Seniors Housing are –

i. A landowner who wants to know what to develop

ii. A developer who wants to hear his choices in the Over 50s Market

iii. An Architect who needs to know what the Boomer Market is buying

iv. An existing Aged Care Housing provider who wonders if there are any economic opportunities beyond the running of a Nursing Home

This is a growth sector that requires much more attention and focus

- There are dozens of market niches in Housing for the Over 50s

- How can we assist with enthusiasm and renewed passion for developing Over 50s Housing.

Seniors Housing, discoursing on trends and weaving the knowledge into your dilemmas, conundrums and land development opportunities.

Analyze the Seniors Housing Sector - giving some shape to the new future of Over 50s Housing in Canada.

Who can benefit by observing trends in seniors housing? Builders, developers, financiers, architects, owners, seniors housing executives who are either, contemplating entering the over 50s housing sector and long standing industry players who need an outside view to freshen up thinking, perspective or re-evaluate industry positioning.

I will be providing detailed analysis of the 100 sub-trends in 50s independent housing, as well as the sub-trends in semi-dependant housing and the future of nursing homes, socio-economic trends, social impacts, financing techniques and an overview of best practice developers, finders, managers and operators as well as a review of design, architecture, construction and business models.

Check back in the future for more content.

Read more about:

• 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