GTA real estate marketplace number of active listings on the market

This graph shows the number of active listings on the market and indicates that there are significantly more listings on the market now compared to Decmeber and January, more choice for buyers


For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

mortgage rate advice

Harry has written me a few times about how happy he is since he followed my advice about taking the variable rate mortgage, he's saved plenty of money.

Mark,

I keep referring to this letter from time to time and when I discuss mortgages with friends. I have never ever gotten a more elegant, lucid, well-informed explanation and advice on mortgages since nobody has ever indicated how much I stand to gain if I stay on a floating rate as opposed to keeping it locked. It is a complicated matter which most real estate/mortgage agents are not competent or knowledgeable enough to answer.
I am glad I asked you!!!

Thanks again. Have a wonderful day!
--
Harry, Calgary, Alberta, Canada



Hi Harry,

Thanks again for your kind words. Just yesterday, I had another discussion with a colleague of mine who has his MBA and he too agrees completely with my logic. After crunching through the numbers based upon current 5 year variable rate mortgages that are about prime minus .5% and this is still far superior compared to locking in at 4.5 or 5% or even higher.

The prime rate would have to reach about 7 or 8% before one would break even, not something
that seems likely to happen for many years to come, maybe not for at least 5 to 10 years. Variable is the way to go, for now.

The banks may eventually 'flip' on the current philosophy. Meaning that once prime gets to 4 or 5% they may change their short term rates to prime plus .5% or 1% but you will still be far ahead of the game by that point.

If this happens, maybe then you would consider locking in. Again, that's many years down the road based upon the economic forecasts over the next few years.

All the best!
Mark

Opportunity abounds - long term versus short term mortgage interest rates

See the graph above shows you that the gap between long and short term rates is widening. This means that there is much more opportunity for saving money when you go variable rate on your mortgage. Of course there is always the risk that short term rates will rise, but they would have to rise considerably higher than they are today for this to have an effect.

I'm not telling you what to do with your mortgage, just that there is opportunity for those that like to play the mortgage game and put tens of thousands in their pockets versus their lender over the term of the mortgage. :-))

For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Average single family residential price changes from January 2009 to April 2010

This chart shows the average single family residential price changes from January 2009 to April 2010

For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Short term mortgage rates may be the way to go for now

After the banks increased their fixed rates twice, it appears that variable
rates look more attractive.

See the following for best rates.

3-year fixed rate: 3.75%
5-year fixed rate: 4.18%
3-year variable rate: P-0.60% (1.65%)
5-year variable rate: p-0.50% (1.75%)

The spread between fixed rates and variable rates has widened.

If you have not locked into any fixed rates, you may be better off to go
for the variable for now.

If you need any help with your mortgage options , please feel free to
contact me.
Mark

Single family average residential real estate prices in the GTA

This graph shows the single family average prices over the past year or so and shows that prices have increased significantly over this period.

For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

TREB reports sales volume and prices up in April 2010

Average prices were up again in April to $437,600 Volume of sale was also
up about 34% compared to the same month last year.


GTA REALTORS(r) Report Monthly Resale Housing Figures

TORONTO, May 5, 2010 - Greater Toronto REALTORS(r) reported 10,898 sales
through the Multiple Listing Service(r) (MLS(r)) in April, representing a 34
per cent increase compared to April

2009. There were also 20,683 new listings in April - a 59 per cent annual
increase. Both the sales and new listings results amounted to new records
for the month of April under the

current Toronto Real Estate Board (TREB) boundaries.

"The GTA resale market is functioning properly. Sales were high as buyers
continued to take advantage of affordable home ownership opportunities.
Listings grew as home owners reacted

to strong sales and price growth," said Toronto Real Estate Board President
Tom Lebour.

More balanced market conditions will result in sustainable rates of annual
price growth in the second half of 2010."

The average price for April transactions was $437,600 - up 13 per cent
compared to the average of $385,641 recorded in April 2009.

"Home sales continue to be driven by many different segments of the market,
with sales growth for all major home types in both the City of Toronto and
surrounding 905 regions," said Jason Mercer, TREB's Senior Manager of Market
Analysis. "Home sales will remain strong in the second half of 2010, but
will slip from the current record pace as borrowing costs rise."

Mortgage interest rates in the GTA - 5 year closed rate at 3.79%

As part of my obligation to provide you with excellent service, today I have received notification from 2 major banks, Royal Bank and TD Canada Trust that further increases in mortgage rates are occurring.

Over the past 4 weeks rates have moved from the upper 3% range to the mid to upper 4% range. These changes are significant.

As of equal significance is one company that I work with called AstrumStar and their rates are still excellent with the AstrumStar 5 year closed rate at 3.79% and the AstrumStar 3 year variable rate at prime minus 0.9% - yes 1.35%.

Yes these rates are available to those who transact through me. Let me know if you are interested and I will send you details.

Thank you,
Mark




For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com

Mortgage interest rates, The Bank of Canada and our current GTA real estate marketplace

Hello,

Houses sales will slow down when interest rates increase.

Many people are hoping that the real estate market slows down, they feel things are too fast and hot and the recent increases in real estate prices have caused more inflation in Canada than the Bank of Canada wanted or anticipated.

The Bank of Canada announced on Tuesday that although they promised to not increase the prime interest rate until July 1 of this year, they said that they may "break that promise" and increase the bank prime rate at the beginning of June. Their reason is that the economy is too hot and the inflation rate is currently too high, above their target inflation rate.

By increasing interest rates, this will increase mortgage interest rates and less people will be able to afford to buy a home so the real estate market will slow down. This is what the Bank of Canada wants to happen and many others want to happen. They feel the inflation rate is getting too high.

When interest rates go up, this always means that people who are barely able to afford a home will not be able to afford a home ( or at least afford less), they will not be able to purchase or will have to purchase at a lower price and this will have a negative ripple effect on the entire marketplace and the real estate market will slow down. Prices may not fall right away, but they will stop increasing and the demand will decrease.

Also, July and August are typically the two slowest months in real estate (next to December) so the seasonal real estate slowdown along with increased interest rates plus the HST coming into effect July 1 will most likely slow our real estate marketplace.

I hope this helps explain things to you! :-))

Thank you,
Mark

Number of sales in the GTA is dramatically increased compared to the same period last year

This chart below clearly shows that the number of sales in the GTA is dramatically increased compared to the same period last year. New listings are also up, but active listings are down, meaning that there is much more demand than supply and this is why prices are rising.

You will also note that the average days on the market is half of what it was a year ago, again, this indicates that the market is very fast right now.
All the best!
Mark

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