October Report - Prices down about 3% and sales volumes down about 6% compaing year over year figures

October Report - Prices down about 3% and sales volumes down about 6% compaing year over year figures



TREB is stating that the GTA Resale Housing Price and Sales were Measured in September

October 3, 2008 -- TREB Members reported 6,424 sales of single family dwellings in September, down about six per cent from the 6,866 sales recorded during September of last year, Toronto Real Estate Board President Maureen O'Neill announced today.

However, the 6,424 sales reported for September 2008 is down just three per cent from the 6,622 figure recorded in September 2006. To keep in perspective, September 2007's 6,866 sales was the second best figure ever recorded for that month.

The overall transaction figure for September masks significant regional differences. Within the City of Toronto sales registered 2,546, down 11 per cent from the 2,854 figure recorded in September of 2007 but down five per cent from the 2,680 recorded during the same month in 2006. In the 905 suburbs, the 3,878 sales that went through TorontoMLS were down three per cent from last year's 4,012 sales, and down two per cent over the 2006 total of 3,942 sales.

Overall, GTA prices declined three per cent from their year-ago levels to an average of $368,549 from the September 2007 figure of $380,132. As with sales, the GTA's regions fared quite differently on average price during the month. The average within The City of Toronto, at $393,647, fell six per cent from September 2007's $420,182 but rose six per cent from the $371,682 recorded in the same month of 2006. Meanwhile prices in the 905 districts, at $352,071, rose marginally from the $351,641 recorded in 2007, and was up five per cent from 2006 September figure of $333,818.

Breaking down the total, 2,539 sales were reported in TREB's 28 West districts and averaged $352,249; 1,067 sales were reported in the 14 Central districts and averaged $464,397; 1,220 sales were reported in the 23 North districts and averaged $407,424; and 1,598 sales were reported in TREB's 21 East districts and averaged $300,772.

GTA Resale Housing Remains Steady Throughout Summer Months

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

"When life hands you a lemon, say, 'Oh yeah, I like lemons. What else ya got?'"

Another set of valuable life lessons to learn from and to help you get
through the day...

Enjoy!

Mark

_______

"When life hands you a lemon, say, 'Oh yeah, I like lemons. What else ya
got?'"

The secret of business is to know something that nobody else knows.

Money doesn't always bring happiness. People with ten million dollars are
no happier than people with nine million dollars.

"The real art of conversation is not only to say the right thing at the
right place but to leave unsaid the wrong thing at the tempting moment."

"Nothing great was ever achieved without enthusiasm."

"It took me seventeen years to get 3,000 hits in baseball. I did it in one
afternoon on the golf course."

"If a cluttered desk is the sign of a cluttered mind, what is the
significance of a clean desk?"

"A signature always reveals a man's character - and sometimes even his
name."

"Free advice is worth the price."

"A good listener is usually thinking about something else."

"We are continually faced with a series of great opportunities ybrilliantly
disguised as insoluble problems."

"Everywhere is walking distance if you have the time."

"One of the lessons of history is that nothing is often a good thing to do
and always a clever thing to say."

"Money frees you from doing things you dislike. Since I dislike doing nearly
everything, money is handy."

"Tact is the knack of making a point without making an enemy."

"A ship in harbour is safe, but that is not what ships are built for."

"There are many things that we would throw away if we were not afraid that
others might pick them up."

"A bank is a place that will lend you money if you can prove that you don't
need it."

"In any moment of decision the best thing you can do is the right thing, the
next best thing is the wrong thing, and the worst thing you can do is
nothing."

"Never take the advice of someone who has not had your kind of trouble"

"In spite of the cost of living, it's still popular."

If some great catastrophe is not announced every morning, we feel a certain
void. Nothing in the paper today, we sigh.

History is the sum total of things that could have been avoided.

As long as your going to be thinking anyway, think big.

The secret of business is to know something that nobody else knows.

Any society that would give up a little liberty to gain a little security
will deserve neither and lose both.

The five essential entrepreneurial skills for success: Concentration,
Discrimination, Organization, Innovation and Communication.

Current mortage interest rates in the GTA

Current mortage interest rates in the GTA

TERM	POSTED	Obtainable RATES
6 Month	6.20%	6.20%
1 Year	6.35%	4.70%
2 Year	6.70%	5.09%
3 Year	7.05%	5.19%
4 Year	7.04%	5.25%
5 Year	7.20%	5.39%
7 Year	7.65%	5.55%
10 Year	8.00%	5.55%
Variable Rate		4.50%
Prime Rate		4.75%

Rates Last Updated: Thursday, October 02, 2008

These are some of the best rates out in the marketplace.

If you need a mortgage broker referral, please send me a quick email.

Thank you,

Mark

Housing Market Indicators in Mississauga and the GTA

This table below shows the average figures from the last month's statistics. It shows that the market has softened since a year ago.















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

Mississauga Real Estate Market and our collective Psyche - a snapshot

Good evening,

If you are like me, you are nervous about the state of the real estate market and financial markets here in Mississauga, the GTA and for that matter, all across Canada. This financial market meltdown has been prolonged and deep.

So where are we today in our marketplace. This is a short synopsis of my situation and provides a snapshot to look back upon in 3 to 6 months from now.

I looked at my rrsp's today and they have dropped about 20% since July of this year. Same thing goes for my resp for my children, probably 25% drop with those. My stocks have been free falling for about 3 months and the end seems nowhere in sight. What a ride we've been on for the past few months.

This financial meltdown caused by the financial 'crisis' in the US has now impacted our GTA market. This is not helping our local real estate market.

There are other factors that are affecting our local economy too. There is an upcoming federal election in a few weeks, finally an election in the US next month, (after what seems like about 2 years of campaigning) and uncertainly in many industries. The price of a barrel of oil has yo-yo'd between $100/ barrel to $135 and now back to about $105. The gasoline price at the pumps has also gone up and down like the roller coasters at Wonderland. And it seems like the price went up and stayed up much longer and higher compared to the shorter and lower regions.

All of the above would indicate that we too are heading for financial troubles here in the GTA. As any of you know, I am an eternal optimist, I think positively about every situation, try to look at the positive side of things in life, have a positive outlook on life and try to avoid reading the papers too much to reduce negative thoughts. With all of this said, even I have become a little skittish over the past couple of weeks.

I don't think that our GTA real estate marketplace will follow the lead of the US real estate meltdown. With that said, it does appear that our market has changed. I noticed this subtle change last fall in our market. The larger homes and more expensive properties were taking longer to sell last fall. Properties that are not 'staged' or near 'perfect' condition were selling in a week last fall, now they are taking a month or two, if they sell at all in our current market. Townhomes in Mississauga still seem to be selling like hotcakes. This may be because they are still quite affordable and appeal to a large segment of the market. Condos too are still selling well, in spite of nearly 500 condos for sale in the Square One area alone! In the W15 area which surrounds Square One, but south of the 403 there are 463 condos currently for sale. 463 condos is a great deal of properties. With that said, they too are selling well.

One of the beautiful things about turning 50 (and there are not many), which recently occurred in my life, is that for some reason you feel like you have earned the right to tell people how you feel because you have paid your dues. Now I know why 'old' people talk so much, they too feel they've earned the right to do so and I am no different!

The negativity in the press and the economy over the past 3 or 4 months is having a negative effect on our marketplace. As well, all of this negativity has also affected our psyche. When our psyche is affected, many of us stop spending and tighten our spending. This in turn slows down demand for all products and services and the problems increase.

We have problems in the manufacturing sector that have been ongoing for about 2 years. We see the effect of this directly on prices of small and large ticket items. See how the price of new vehicles has dropped and is now very close to the price in the US, unheard of 5 years ago. Our dollar was above par for some period of time in the last year, first time since the mid 70's but it back again to just below par, about 95 cents compared to the US dollar. Still close to par.

So where am I going with all this? Our Mississauga and GTA market may slow somewhat over the next couple of months due to the reasons above. our market is typically slow in late November and certainly December is our slowest month of the year. January can be a slow month in real estate depending upon the weather. So, with a slow October, we are looking at 3 or 4 months of slower than previous year 4th quarters.

I believe that once the US president is sworn into office in January the US economy will begin to improve, if only due to 'hope' Hope is everything in life and the US will be no different. Hope will affect our psyche. Once we have hope, we will begin to spend again which will in turn help the economy. People in the US feel it will be 5 years or longer to return to where they were 12 months ago.

All of this reminds of the graph that is shown on my site at http://www.mississauga4sale.com/Market-Emotions-Cycle.htm that shows the emotions of the market. It's a great graph and certainly we in Canada are between the two points of Fear and Desperation. Does this mean that we must continue on the downward slide into panic, despondency and depression? I hope that we can go from Fear and Desperation to Hope, but only time will tell.

We are in for an interesting ride over the next 3 to 6 months. Let's hope that we can reach "hope" and "relief" sooner rather than later.

I wish you all the best to you and your family.

Mark

Guaranteed Financial Freedom and Success in Life

Here is my idea and plan for you to succeed in Life. No kidding, this is the bottom line.

Putting your ideas and plans into action that is most important, you have to have the desire and persistence to stay with your plan for the long term. This will absolutely guarantee you financial freedom in the long term. Nothing else can 'guarantee' you financial success except for this below.

I guarantee that you will be financially independent if you invest for the long term in real estate. If you save 10% of your income per year and buy one small townhouse every 2 to 3 years from now for the next 15 years, you will own 5 to 7 townhomes. If you follow my investment and mortgage philosophy, the tenants will pay off your mortgages for you during this time period. On the first townhouse you will be mortgage free in 20 years. So, if you are 35 to 45 today, you will be completely mortgage free on your first townhouse you purchased when you are 55 or 65.

Now, even if they don't go up one dime in the next 20 years, you will have a steady income stream and equity of $260,000 in the first investment property.

Of course the above analysis is absurd, because the townhouse you bought today for $250,000 will be worth at least $350,000 to $500,000 in 20 years, and rents will likely be about $2000 - $2500 per month for that same townhouse, hard to believe isn't it, and you will be very financially secure, just by taking 10% of your income today and buying real estate for the long run.

If you don't believe it, ask yourself how much a townhouse was 20 years ago that is selling for $250,000 today. I can tell you, since 1987 was the year I got into real estate. You could purchase a townhouse for about $100,000 to $125,000 back in '88

I bought a brand new 1988 Honda Accord EXi in 1988, it cost me $24,800 and in 1999 I sold that car for $2500. I just checked the Honda website, the same car is about $33,000 Point is, things were cheap back in 88 compared to today.

1988 was almost the height of the last real estate boom in Ontario. If you purchased the same townhouse in 1985 or 1994 you would be even further ahead of the game.

We've had an unprecedented rise in real estate from 1995 to 2008. 13 years of growth. Some of those years saw huge double digit growth. I don't believe we will see double digit growth in the next few years, but real estate will continue to be a good long term investment in the west GTA.

I wish you All the best!
Mark

MORTGAGE RATE INCREASE

Good Day ,

Mortgage rates have increased with most major lenders.

On average, the increase is .35% on most fixed rate terms of 3 years or greater.

Only 2 prime lenders that I know have yet to issue rate increases.

If you have recently decided to purchase, now is the time to get a rate hold. The rate hold/preapproval is available without risk, cost or obligation.

These rates are still available; however, subject to change without notice.

As of Sept 27, 2008

Prime Rate………….4.75%
Variable Rate………Prime less .45%
1 year closed……….4.80%
3 year closed……….5.35%
5 year closed……...5.04%*
7 year closed……….5.54%*
10 year closed……...5.80%*
25 year closed……...6.95%

* for mortgage of $500,000 or greater; slightly higher rates for lower mortgage amounts
Information subject to change without prior notice. APR.E.&O.E.

Please let me know if you have any questions.

Mark

The Toronto Main Event

You may have attended "The Main Event" back in 2007 and listened to some of the key speakers, namely Donald Trump, Anthony Robbins and others.

Unfortunately, I did not attend this event, but your musing summarizes this event beautifully. I had a few people contact me after this event and some did spend the nearly $1k on materials, but were happy to do so, go figure! As far as I know, none of them have purchased an investment property, to date!

Your comments on 'the Donald' make me want to go and see him next time he is in town, and I will go out of my way to listen to him if he is as straight as you say, that's my type of presenter.

I've seen Anthony Robbins at a training session here in Toronto before and he is awesome, he sure can energize a crowd.

Putting your ideas and plans into action that is most important, you have to have the desire and persistence to stay with your plan for the long term. This will absolutely guarantee you financial freedom in the long term. Nothing else can 'guarantee' you financial success.

I wish you All the best!
Mark

Shorter Amortization on Canadian mortgages is better in the long run

You may have heard that CMHC has lowered their maximum amortization on a mortgage to 35 years from 40 years. As well, there is no longer a no-money down-payment option, you must have minimum 5% cash to buy a property.

I like these changes, for one, it reduces the possibility of a real estate meltdown as is currently happening in the US.

Government changes mortgage rules for CMHC

The federal government here in Canada is attempting to avoid the kind of sub-prime mortgage meltdown plaguing the United States. Effective October 15, 2008, the 40-year mortgages with no money down will no longer be covered through the federal government insurance program administered by Canada Mortgage and Housing (CMHC). Instead of this option, the longest period of amortization for a Canadian mortgage insured by CMHC will be 35 years.

As well, a buyer insured by CMHC will have to make a minimum down payment of five per cent of the home's value. This will be grandfathered, as Canadians already holding 40-year no-money-down mortgages won't be affected by the changes.

The regulations will apply to such federal agencies as CMHC, (the Canada Mortgage and Housing Corp)., which has an estimated 60 per cent share of the mortgage insurance market. However, private-sector mortgage insurance rivals such as Genworth Financial, PMI Mortgage Insurance Co. Canada and AIG United Guaranty are free to offer the product.

One difference is that the federal government will no longer provide insurance that protects lenders in the event of a default by the insurers.

Existing 40-year mortgages will be grandfathered, a Finance Department spokesman said. In 2006, the maximum amortization period was extended to 40 years from 25, and longer-term mortgage products have become increasingly popular with buyers looking for lower monthly payments as the price of Canadian homes soared.

Today's announcement marks a responsible and measured approach by the government to ensure Canada's housing market remains strong, and to reduce the risk of a U.S.-style housing bubble developing in Canada," the Finance Department said in a statement.

In 2007, 37 per cent of new mortgages were for terms of longer than 25 years, according to the Canadian Association of Accredited Mortgage Professionals (CAAMP). But while longer amortizations stretch out monthly payments, they also greatly increase the cost of a mortgage over its lifetime. For example, the total interest on a $300,000 mortgage can soar from $286,161 over the life of a 25-year mortgage to $498,416 over a 40-year amortization period – adding more than $200,000 to the cost of the home.

According to analysts, the Canadian housing market would have slowed sooner if longer- term amortizations had not been introduced. The longer amortizations mean much greater interest costs over the life of the mortgage, but smaller monthly payments, which allows buyers to bid on a more expensive home than they otherwise could afford.

Bank of Canada Governor Mark Carney said in May he was concerned about the prevalence of long amortizations. "They add to the momentum in the housing market, and if everyone has a 40- year amortization mortgage, then you just have higher housing prices."

This, combined with the fact that these mortgages are often combined with little or no equity, raised alarm bells with policy makers looking at the turmoil that took place in the U.S. when house prices started to fall.

"We've seen an inclination now, a trend, toward longer-term amortizations and smaller down payments, and that is a matter of some concern," Finance Minister Jim Flaherty said in a speech in May. Mr. Flaherty was not available for comment Wednesday.

Jim Murphy, president and chief executive of CAAMP, said in talks with him the government expressed concern about the risky lending products that collapsed the U.S. housing market. The Finance Department was also worried about the future impact of competition between mortgage insurers, which led to the introduction of 40-year mortgage in 2006, Mr. Murphy said.

"I think you have a clear case of the government sitting down and looking at its risk exposure and wanting to review that. They have financial guarantees in place for the CMHC and private insurers, and they were saying, 'What is our risk, and what is the risk to the Canadian taxpayer?' " he said.

Others, however, say home buyers and banks have been prudent with their finances, and are being punished for the more lax approach south of the border. "Things here are not like they are in the U.S. where they had those NINJA loans, no income, no job, no assets. … It's only going to hurt the consumer," said John Panagakos, owner of Toronto brokerage Mortgage Centre.

Reaction from the industry was mixed. "CMHC supports the new parameters … . We also support their efforts to maintain the strong Canadian housing market," said spokesperson Stephanie Rubec, adding CMHC will stop insuring 40-year and zero down payment mortgages in October.

"It's the right move," said Nick Kyprianou, president of Home Capital Group Inc., whose principal subsidiary, Home Trust Co., provides alternative mortgages. "Why get people overextended? Nobody wins by getting people right to the end of the cliff."

The move actually comes at a time when the housing market has moved on to other concerns, the most pressing of which is chilling consumer sentiment due to high fuel prices, said Douglas Porter, deputy chief economist at BMO Nesbitt Burns Inc.

This was issued by CREA 10/07/2008

You may read more about this at my site, www.mississauga4sale.com

Thanks

Mark

RBC comments on Canada's Economy

Canada’s economy limps along in the second quarter

Canada’s economic growth reports have been disappointing, with real GDP contracting at a 0.8% annualized rate in the first quarter and eking out only a mild 0.3% annualized growth rate from April through June. Hiding beneath these soft overall growth numbers, however, Canada’s domestic economy remained firm. Final domestic demand growth averaged 2.2% during the six-month period, slower than 2007’s 4.2% pace but much stronger than the tepid growth rate for the overall economy.

Slower-than-expected housing reports and the sharp 55,000 job loss in July are supporting worries that the domestic economy’s growth momentum is starting to crack. However, August’s 15,200 job gain took some of the heat from these concerns because the report suggested that July’s sharp drop may have overstated the weakening in the labour market.

The market is priced for the Bank of Canada to take action and cut the policy rate to shore up the economy despite the fact that the headline inflation rate is running above the top end of the Bank of Canada’s target band. To be sure, the core measure remains secured below the mid-point of the Bank’s target band but, with a 3.4% headline inflation rate, policymakers will remain wary about a pick-up in inflation expectations.

In its September 3 policy statement, the Bank highlighted both upside and downside risks to the inflation/growth outlook, indicating an even-handed assessment of the risks. To be sure, the Bank pointed to some greater downside risks to growth emanating from a faltering U.S. economy while acknowledging that the hit to inflation from higher energy prices may not be as pronounced as was feared in July. However, the downside risks to growth are focused more on activity in 2009, while Canada’s "strong" domestic economy and global inflationary pressures continue to present a near-term upside risk to the medium- term inflation outlook.

This characterization suggests that the central bank will remain on the sidelines monitoring the economic data to see whether one or the other risk comes to dominate. Our forecast assumes a 3.00% overnight rate through the end of this year before being gradually raised in 2009 as the downside risks to growth ease.

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