Monday, January 11, 2010

Predictions for Mississauga GTA Real Estate Marketplace in 2010

Hi

So here we are again, at the end of another year, actually the end of a
decade and the beginning of a new year. Every year at this time we can look
back and reflect on what has happened in the past year with certainty. Also
at this time of year this is the time that we try and peer into the future
and predict what will happen with far less certainty. In real estate it's
very critical to try and predict the future because so much is relying on
it.

It takes quite a bit of time to condense my thoughts and observations into
this section of predictions for 2010. Part of the reason is that I want to
be as accurate as possible. As well, I know that many people will read this
page and rely on some of the predictions contained herein. Therefore, I
want to give as good advice as possible, advice that is realistic and yet
insightful.

Real estate is one of the few things in our lives that tends to increase in
value year after year after year. There is no certainty with this increase,
but it sure has seemed certain over the past 15 years. Our year over year
average single family residential price has increased every year since 1985,
except the fall of 2008, including this year. Don't believe me, see the
graph here:
http://www.mississauga4sale.com/TREBavg1995date.htm

There are some, many in fact that are predicting that we in the GTA and
especially BC are sitting at the peak and prices are about to crash. Garth
Turner is one person who is predicting that prices are almost guaranteed to
fall in 2010 I don't agree with him and don't feel that our area,
Mississauga and the GTA will fall in the next year.

What do we know with certainty for the future? We know the following is
almost guaranteed to happen in the Mississauga and GTA real estate
marketplace:

* Interest rates will increase in 2010, the Bank of Canada is
currently stating rates will increase in mid 2010 - this will put downward
pressure on prices after rates increase, but will cause many buyers to buy
before the rates increase and anticipation of the increase in rates
* there will be a shortage of listings for at least January and maybe
into February, this is a near certainty based upon the past 22 years for
January and early February, not many people list their homes at these times
- this will cause upward pressure on prices in the fist quarter of 2010
* HST will come into effect July 1, 2010 and this will increase the
cost when selling your home and to a lesser extent increase the cost to the
buyers, this will put slight downward pressure on prices

This is what we know with less certainty:

* the US real estate recovery seems to be happening
* the US and global economy will improve in 2010
* people may perceive that the HST will causes prices to increase once
it comes into effect and try to save some money before July 1st and this
could cause a mini boom in our market in the late spring of 2010

Due to the fall in late 2008, the average price in 2009 compared to 2008 is
up about 12%. We are up about the same percentage comparing 2007 to 2009
This is what I predicted in January for 2009
http://www.mississauga4sale.com/Toronto-GTA-Real-Estate-Market-Predictions-2
009.htm#2009
When I read the predictions I made back in January for 2009 it
makes me think that maybe I should go into the prediction business, more
than 3/4 of the things I predicted came true! I was wrong on Gold and wrong
on Gasoline prices, otherwise my predictions were quite close.

* These are my predictions for 2010 below and also online at this
link:
http://www.mississauga4sale.com/Toronto-GTA-Real-Estate-Market-Predictions-2
010.htm#2010

* I predict that our prices will increase about 4 to 6% in 2010 with
some softening in our market when the Bank of Canada increases rates in the
middle of 2010, once the Olympics end in the first quarter of 2010 and the
'dreaded' HST comes into affect July 1st of 2010
* Mortgage rates will increase beginning about July of this year, the
bank prime rate as of January 1, 2010 is 0.25% and I predict by year end it
will be at 1.00% to 1.50% This means that current mortgage interest rates
will increase by about 1.25% to 2% over what they currently are. This may
sound excessive, but I firmly believe that our economy will bustle this year
and increased rates will be necessary to calm things down a little, plus the
banks will want to gouge a little in light of increasing prime rates. They
often do this when rates are increasing as they can get away with it with
little backlash.
* I still believe you should go short term on your mortgage, read more
here about why I feel this way:
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm
* We live in a very vibrant, growth oriented area of North America
with a very diverse economy and culture. People seem to want to work hard
and improve upon their personal and financial situation and almost everyone
I meet is employed and optimistic about the future. This is good for the
local economy and our future.
* No matter what happens, as long as you continue to work hard, save
10% of your gross income, watch what you spend, don't get into too much debt
that you can't handle it should you find yourself with a a job for a few
months, then you should be able to slowly and surely achieve financial
independence.
* The condo market will continue to surge, it's affordable and
desirable
* Bungalow style homes will become more desirable, (they currently are
very desirable), as our population age increases
* Barrel of oil will be $100 at end of year and gasoline will be $1.10
and gold will be $1100 per ounce at end of 2010
* Once again, beware the emotions of
<http://www.mississauga4sale.com/Market-Emotions-Cycle.htm> the marketplace
and stick to your long range goals , currently I believe we are in the
optimism/excitement phase so things may get really hot this spring in the
market.
* I still subscribe to all the values and principles that I've written
about in the past on this page below.
* I am a very optimistic person and always believe that I can do
better by reading and doing things every day that contributes to my long
term goals. I always set high but attainable goals and often come close to
reaching my goals and even if I fall short, I've surpassed what I have done
in the past. I subscribe to many newsletters that preach optimism and
growth and these help me stay sharp and continue to learn. Every day I seem
to learn something new, so at least I'm growing. You can read some of the
ideas that I subscribe to and believe at this page:
http://www.mississauga4sale.com/Motivation-Success-Ten-Scrolls.htm

That's about it for now, keep to your plan invest in real estate for the
long term, you cannot go wrong.

I wish you a very Happy New Year and all the best to you and your family in
2010
Mark

Sunday, January 10, 2010

Average annual income of a real estate agent

Some people think real estate agents earn huge money, millions per year! LOL

Too bad that is not the case.

If you take the total number of properties sold on the Toronto Real Estate Board (TREB) last year multiplied by the average selling price and then take 2% commission as the average per side in the transaction then the 'average' agent earned approximately $31,000 in 2009

87000 properties sold last year on TREB, 23000 realtors on TREB, average price $411,000 and 2.0% average commission per end equals $31000 average income on TREB
(87 000 / 23 000) * 411 000 * .020 = 31 093
In the US the average sales agent earns about $28,400 and the average for brokers and sales reps is about $36,700 (just another reason, besides the warm weather, to move to the US! LOL)

Median Gross Personal Income of REALTORS®

YEAR

Brokers/
Broker-Associates

Sales
Agents

ALL REALTORS®

2008

$49,300

$28,400

$36,700

2007

$65,200

$31,000

$42,600

2006

$73,300

$34,600

$47,700


All the best!
Mark

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

Saturday, January 09, 2010

You think Mississauga and Toronto condos are expensive, check out Manhattan, New York City prices!

check out these prices of Condominiums in Manhattan, unreal

these are for condos

The average price per square foot here in Mississauga is about $300 so for a 1000 sqft condominium it would cost about $300,000 - on average

In Manhattan, the cost is about $1176 per sq ft so the same condo would cost $1,176,000 - good grief!

Friday, January 08, 2010

TREB market watch for the Toronto and GTA real Estate Marketplace for 2009

This is the detailed report from TREB market watch for the Toronto and GTA real Estate Marketplace for 2009

2009 was a solid year, it began slowly, but the last half of the year was very active and overall prices increased 4% compared to the previous year.

GTA Resale Market Resilient in 2009

TORONTO - Wednesday, January 6, 2010

Greater Toronto REALTORS® reported 87,308 MLS® transactions in 2009 – a 17 per cent increase over 2008.

This result included 5,541 sales in December. The 2009 result was in line with the healthy levels of sales experienced between 2004 and 2006, but lower than the record of 93,193 set in 2007.

“After a slow start to the year, existing home sales rebounded during the second half of 2009,” said TREB President Tom Lebour.

“As consumer confidence improved, many households moved to take advantage of affordable home ownership opportunities in the GTA. The strong residential real estate sector was a key contributor to overall economic recovery in Canada.”

The average home price in 2009 climbed four per cent to $395,460.

The average price for December transactions was $411,931.

“Market conditions became very tight in the latter half of 2009.

Sales climbed strongly relative to the number of homes listed for sale, resulting in robust price growth that more than offset average price declines in the winter,” said Jason Mercer, TREB’s Senior Manager of

Market Analysis. “A greater supply of listings in 2010 will see home prices grow at a sustainable pace.”

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

Thursday, January 07, 2010

2009 GTA TREB residential real estate resale home sales up and prices up for year

The figures for the 2009 are out for Toronto and GTA real estate market and they show that after a slow start in the spring, the real estate market rebounded nicely in the last 3/4 of the year. In fact, the number of sales year over year was up 17% and average prices were up to $411,931 for single family residential dwellings, an increase of 4% over the previous year.

GTA REALTORS® REPORT DECEMBER RESALE HOUSING MARKET FIGURES

TORONTO, January 6, 2010 -- Greater Toronto REALTORS® reported 87,308 MLS® transactions in 2009 – a 17 per cent increase over 2008. This result included 5,541 sales in December.

The 2009 result was in line with the healthy levels of sales experienced between 2004 and 2006, but lower than the record of 93,193 set in 2007.

“After a slow start to the year, existing home sales rebounded during the second half of 2009,” said TREB President Tom Lebour. “As consumer confidence improved, many households moved to take advantage of affordable home ownership opportunities in the GTA.

The strong residential real estate sector was a key contributor to overall economic recovery in Canada.”

The average home price in 2009 climbed four per cent to $395,460. The average price for December transactions was $411,931.

“Market conditions became very tight in the latter half of 2009. Sales climbed strongly relative to the number of homes listed for sale, resulting in robust price growth that more than offset average price declines in the winter,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “A greater supply of listings in 2010 will see home prices grow at a sustainable pace.”

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



MREB (Mississauga Real Estate Board) reports high number of sales in November

MREB (Mississauga Real Esate Board) reports high number of sales in November


November a record breaking month for MLS® home sales

MLS® home sales in the area served by the Mississauga Real Estate Board rose to the highest level on record for the month of November in 2009. The current strength of demand stands in sharp contrast to the weak activity levels of one year ago.

According to the Board’s statistics, MLS® home sales numbered 996 units in November 2009, more than double year-ago levels. The large year-over-year gain reflects the extent to which demand has recovered from one year ago, when news of the global financial crisis hammered consumer confidence.

“November was another record month for sales,” said Judi Lloyd, President of the Mississauga Real Estate Board. “The difference in the resale housing market now, compared to one year ago, is night and day.”

Seasonally adjusted sales also set another new record in November, jumping 15 per cent from October (seasonal adjustment removes normal seasonal fluctuations). Seasonally adjusted MLS® activity now stands 149 per cent above the low in January.

The total value of all MLS® residential sales was $376.3 million in November 2009, a new record for the month, and an increase of 142 per cent from year-ago levels.

The average price for MLS® home sales was $377,799 in November 2009, the highest level on record for the month. This represents an 11 per cent gain from a year earlier, the third consecutive double-digit increase in price.

The number of new listings on the Board’s MLS® system in November 2009 was on par with the same month last year. This stands in contrast to the double-digit declines in each of the past four months.

Strong demand continues to draw down inventories. The number of active listings declined on a year-over-year basis for the eighth time in as many months in November, and dropped by more than 50 per cent for the second consecutive month. Active residential listings on the Board’s MLS® system numbered 1,357 units at the end of November 2009, falling 55 per cent from a year earlier. This is the lowest the supply of homes on the market has been in eight years.

There were 1.4 months of inventory at the end of November, down slightly from the previous month. This is the lowest level in more than a decade. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.

About the Mississauga Real Estate Board
Established in 1954, the Mississauga Real Estate Board represents approximately 1,600 real estate Brokers and salespersons from Mississauga and surrounding areas. Members of the Board use the REALTOR® trademark, which identifies them as real estate professionals who subscribe to a strict Code of Ethics. Advertisements of local MLS® property listings and information about the services provided by a REALTOR® can be found at mreb.ca

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


Wednesday, January 06, 2010

US existing home sales are UP


This report below summarizes the US resale home sales volumes and prices


US Existing Home Sales, November 2009 Results
Source: National Association of REALTORS
Link to Release:
http://www.realtor.org/press_room/news_releases/2009/12/another_respond

Summary: In November, U.S. existing home sales rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million units from a revised 6.09 million in October.


Sales remain at their highest level since February 2007. First-time buyers accounted for over half of sales, as buyers rushed to take advantage of the first-time buyer tax credit which was ultimately extended.


Inventories continued to decline, edging down to 6.5 months of supply from the 7.0 months recorded in October.


At $172,600, median prices for homes remained below 2008 levels, down 4.3 per cent from November of last year. The large number of “distressed sales” (approximately one-third) has been a drag on annual price growth.


Analysis: The growth in existing home sales and shrinking supply is a positive sign for the US economy. Similar to Canada, each resale home transaction results in substantial spin-offs to other sectors of the economy related to housing (financial services, home improvement etc.). The combination of shrinking supply and increasing sales also bodes well for renewed home price growth moving through 2010, which will serve bolster US consumer confidence.


This is important, given that consumer spending accounts for over 70 per cent of US GDP and is also the driver of US trade with other countries like Canada.


Tighter resale market conditions have also benefitted the new home market in the US. Many home buyers have spilled over into the new home market, which has resulted in more starts in recent months compared to the outset of 2009.



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



Tuesday, January 05, 2010

Popeye I'll Gladly Pay you Tuesday for a Hamburger Today!


This is one of those classic moments from the old Popeye cartoons. Often I recall this phrase uttered by Wimpey "I would gladly pay you Tuesday for a Hamburger Today" seems that this is much of what we are about 50 years later! Many people want to buy now and pay later, let's hope that they can handle future payments and keep their budget under control.

All the best!

Mark






Monday, January 04, 2010

Bank of Canada maintains interest rates Reiterates commitment to hold until end of second quarter of 2010


This is a report from CREA and the Bank of Canada Regarding interest rates and the fact that they will hold them where they are until mid 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



Friday, January 01, 2010

Mississauga Real Estate 3rd quarter residential activity

Activity was up in the 3rd quarter

















Residential Activity





MLS® home sales activity in Mississauga rebounded sharply in the third quarter of 2009, reaching the highest level on record for activity in the third quarter period. Residential activity numbered 3,377 units in the third quarter, up 21 per cent from the same period last year.



Seasonally adjusted sales activity rose 13 per cent from levels in the second quarter (seasonal adjustment removes normal seasonal fluctuations). Building on consecutive increases in the two previous quarters, seasonally adjusted activity now stands 64 per cent above the low from the end of 2008.



MLS® home sales rebounded by 10 per cent or more from year-ago levels in all major housing categories. Condo apartment sales set a new record, while sales of single detached homes and condo townhouse units reached the highest levels on record for the third quarter period.



The number of active listings dropped by more than 25 per cent from year-ago levels in all major housing categories. Combined with a strong increase in sales activity, the MLS® market was considerably tighter, and buyers spent less time shopping than they had a year earlier.



Median sale prices in all major housing categories posted new quarterly records, due to significant increases in activity in the highest price ranges.



The median sale price for MLS® single detached homes rose seven per cent from year-ago levels to $485,000 in the third quarter of 2009.



The median sale price for MLS® semi-detached units was up two per cent year-over-year to $350,000, while the price for MLS® condo townhouse units was up five per cent from the previous third quarter to $279,000.



The median sale price for MLS® condo apartment units rose five per cent from year-ago levels to $213,000.


































Unit sales


Category


Q3 2009


Q3 2008


Year-over-year percentage change


Single detached


1,113


893


+25


Semi-detached


458


417


+10


Condo townhouse


637


532


+20


Condo apartment


870


728


+20



































Median sale price ($)


Category


Q3 2009


Q3 2008


Year-over-year percentage change


Single detached


485,000


455,000


+7


Semi-detached


350,000


343,000


+2


Condo townhouse


279,000


267,000


+5


Condo apartment


213,000


203,450


+5



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