Tuesday, January 05, 2010
Popeye I'll Gladly Pay you Tuesday for a Hamburger Today!
Monday, January 04, 2010
Bank of Canada maintains interest rates Reiterates commitment to hold until end of second quarter of 2010
Bank of Canada maintains interest rates
Reiterates commitment to hold until end of second quarter of 2010
The Bank of Canada held its benchmark overnight lending rate steady at 0.25 per cent at its setting on October 20th, 2009. The trend-setting Bank rate, which is set 0.25 percentage points above the overnight lending rate, remains at 0.5 per cent.
The Bank acknowledged that recent indicators point to the start of a global recovery, and that economic and financial developments have turned more favourable than it had previously expected. While recognizing that the Canadian economy is rebounding, it expects the recovery to be weak by historical standards.
The Bank downgraded its forecast for Canadian economic growth this year, while keeping its forecast unchanged for 2010. It also lowered its forecast for economic growth in 2011.
In its September announcement to hold interest rates steady, the Bank forecast that inflation would return to its two per cent target in the second quarter of 2011. The Bank has now moved that date out to the third quarter of 2011.
The Bank’s commitment to keep interest rates on hold until the second half of next year is conditional on the outlook for inflation. Since inflation is not expected to pick up sooner than it previously expected, the Bank repeated its commitment to keep interest rates on hold. “Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target.”
The Bank pointed to the rapid rise in the Canadian dollar in recent weeks as a risk to the Canadian economic recovery, saying “Heightened volatility and persistent strength in the Canadian dollar are working to slow growth and subdue inflation pressures.” The Bank now expects that the domestic economy will be a greater source for economic growth, at the expense of weaker net exports.
The Bank expects the output gap to close in the third quarter of 2011, one quarter later than it had projected in July when it said production
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?
Friday, January 01, 2010
Mississauga Real Estate 3rd quarter residential activity
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I hope this finds you Happy and Healthy! All the Best! Mark A. Mark Argentino
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Thursday, December 31, 2009
Wednesday, December 30, 2009
CMHC Reports on GTA housing starts
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.
Tuesday, December 29, 2009
Almost time to lock in your mortgage
Good long range planning will certainly help you with your future!
This goes against what I have written many times in the past. I've always recommended going short term on your mortgage. Once we come out of this recession and the economy starts to improve, rates will increase and we may never see these low rates again for many decades to come. It could be time to lock in for 5, 7 or even 10 years at the current rates to take advantage of these all time low mortgage interest rates
Thanks
Mark
Monday, December 28, 2009
US Housing Market has reached bottom!
Bottom Reached in Housing
U.S. home sales got a lift from the government’s first-time homebuyers’ tax credit and record low mortgage rates.
Sales of both new and existing homes are running 31% higher than their recent low, albeit 25% slower than their peak pace.
This increase combined with sharply lower housing starts has reduced the inventory of unsold homes significantly. Price increases so far have been limited, with the average still about 20% lower than peak levels.
The outlook for real estate remains murky given the backlog of foreclosures and strong increases in the number of homeowners who are delinquent in making their mortgage payments.
The government’s tax credit was extended until the end of April and the base of those who qualify broadened out. With interest rates remaining low, we expect that the pace of activity will gradually pick up but expect a relatively tame recovery for this sector during the forecast period.
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?
Sunday, December 27, 2009
2010 is shaping up to be a great year, from RBC
2010 may be a great year, hold on for the ride.
Enjoy the article below.
Mark
New beginnings
Turning the page on 2009 will be done with great relief almost everywhere in Canada. The past year has been, by far, the toughest since the early 1990s recession and, in some cases, the early 1980s recession. Hardship was evident from coast to coast, even in parts of the country, such as Alberta, that were previously considered almost bullet-proof.
Perhaps more importantly, however, will be the full force of fiscal and monetary stimulus kicking in. Nearly all governments at the federal, provincial and municipal levels have initiated substantial infrastructure spending programs and these will be in high gear during the year ahead.
In most cases, although not all, 2010 will be the peak of stimulus spending.
The easing of monetary policy is already having a visible impact – most notably in housing resale markets across the country – and should continue to do so despite our expectation that the Bank of Canada will gradually take its feet off the gas pedal starting mid-year. Extremely low mortgage rates have been key to the spectacular rebound in housing resale activity in every province since early 2009.
The precipitous decline in activity that started late in 2008 plunged a number of provinces – including Ontario, Alberta and British Columbia – into a deep slump through the better part of the year, which reverberated loudly in regional job markets.
The ranks of the unemployed swelled and unemployment rates surged broadly, reaching the highest levels since the 1990s in Ontario and Alberta.
While many challenges will remain, 2010 promises a widespread turnaround in economic performance, albeit a modest one at first. A more sanguine global context will sharply contrast with the meltdown on the world stage that took place in 2008 and early 2009. With the financial crisis behind us and the U.S. economy on the mend, factors “external” to the provincial economies are expected to contribute positively to growth again.
In turn, this housing resurgence should be seen as evidence that consumers are feeling more upbeat even in areas of the country such as British Columbia, Ontario and Alberta where the recession caused substantial damage.
The price tag for the fiscal stimulus is enormous – huge budget deficits.
Collectively, the provinces are projecting shortfalls totaling $38.2 billion in the 2009-10 fiscal year and at least $30.2 billion in 2010-11 (with two provinces not providing estimates), both records in terms of value. However, relative to GDP, the deficits will be modestly milder than the peaks recorded in the early 1990s.
While running up huge budget shortfalls might cause some discomfort, the alternative was even less attractive given the severity of the economic downturn. Nonetheless, returning to balance during the medium-term will be a challenge involving difficult choices. ECONOMICS I RESEARCH
In this update, there is little change to the big picture from our September Provincial Outlook: the contraction in activity is still seen to be widely spread in 2009 among provinces (with Manitoba and Nova Scotia the only exceptions)and the expected recovery to be equally generalized in 2010.
On the upside, there have been some upward revisions to New Brunswick and Nova Scotia in both 2009 and 2010 (Nova Scotia is now projected to be flat in 2009), and Quebec and Manitoba in 2009.
In this report, we are also introducing forecasts for 2011, which generally depict provincial economies strengthening further. The western part of the country – led by Saskatchewan – is generally expected to grow faster than the national
average of 3.9% with the exception of British Columbia, which will be feeling some post-Olympics moderation.
However, we have made minor revisions to some provincial forecasts. The most significant change has been for Newfoundland & Labrador, where longer-than-expected production shutdowns in the mining sector have prompted us to deepen the real GDP decline in 2009 by one percentage point to 4.5% and to bump up growth slightly in 2010 to 2.4% from 2%.
Smaller downward revisions have also been made to Alberta (to reflect weaker-than-expected momentum at this stage) in both 2009 and 2010, Saskatchewan in 2009 (in light of the dramatic drop in potash production) and Ontario in 2009 and 2010 (a larger-than-expected decline in the second quarter of 2009 and slightly more subdued recovery 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 2010 Calendar?
Wednesday, December 23, 2009
Is it Time to Lock into Long term mortgage interest rates?
The answer depends upon many factors including your ability to tolerate risk.
I've written many times in the past that the best route was to go short term on your mortgage, for at least the past 20 years or so. Mortgage rates are predicted to increase beginning about the middle of 2010 and some are predicting that the Bank of Canada will increase the prime rate by as much as 2.75% over the period from the middle of 2010 to the end of 2011 If this happens, then it's likely mortgage interest rates will also increase by about the same or even more than 3% over the same period.
This would indicate with almost certainty that you should lock into long term mortgages. BUT, this is not necessarily true. Read more at this link
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm#update2009
I wish you and your family a Merry Christmas and all the best in the New Year!
Mark
Rental Market Conditions Soften reports CMHC
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
- See seasonal housing patterns
- Would you like me to send you a 2010 Calendar?