Thursday, November 29, 2012

Confusion about the Great Gulf condos at Erin Mills and Eglinton Mississauga

A client recently asked me to help them purchase a townhouse at Erin Mills Parkway and Eglinton, on the south side of the Erin Mills Town Centre and on the west side of Erin Mills Pkwy. This piece of land has sat vacant for about 20 years while development has sprung up around it.

Great Gulf put up a sign recently on this piece of land saying they were developing and selling HOT townhomes. I was very excited to learn that they were finally developing that prime real estate. The sign states that townhomes are 'coming soon' with a few other details.

Then on that site there were two buildings erected, one was a sales office for the townhomes and the other a 'mystery' building. Both looked almost like permanent structures, given the gigantic piers that the buildings were set upon. Again, such excitement over development of the land.

I finally went into the Great Gulf sales office yesterday that is opening soon and talked to the Great Gulf people inside that sales office. Unfortunately, this sales office is for the townhomes that Great Gulf is building at the Winston Churchill and Eglinton site location.

I was completely fooled by that Great Gulf sign on Eglinton by the hospital. I was certain that they were building the townhomes at that site but the sign clearly states "Eglinton and Winston Churchill" - good advertising on their part - myself and probably 99% of people who look at that sign assume the building site is right there at that prime location

Additionally, and more depressing, I found out that The Pemberton Group owns the entire chunk of land between Erin Mills and Metcalfe Avenue on the south side of Eglinton where that sales office is located, Great Gulf is just leasing that office location from them. I say "depressing" because that implies that Pemberton will likely build another set of condos on that ultra-prime piece of real estate, I prefer townhomes, but that's my preference.

I'll let you know if I find anything else out about this piece of land and it's development.

Have a great day!

Mark

Monday, November 19, 2012

Mississauga real estate and GTA mid month real estate sales figures

Bottom line is that the number of transactions were down about 17% for the
first two weeks of November.

See the full report below.


GTA REALTORS(r) RELEASE MID-MONTH RESALE FIGURES

TORONTO, November 19, 2012 - Greater Toronto Area REALTORS(r) reported 2,687
transactions through the TorontoMLS system during the first two weeks of
November.

This result represented a 17.5 per cent decline compared to the same period
in 2011.

"The reduction of the maximum amortization period to 25 years translated
into higher mortgage payments. Some households will have to save more money
for a down payment before purchasing a home, in order to offset these higher
mortgage costs.

This is more difficult in the City of Toronto, where households must pay an
additional land transfer tax up front. The abolishment of this tax would
allow buyers to have a larger down payment," said Toronto Real Estate Board
(TREB) President Ann Hannah.

The average selling price during the first 14 days of November was $488,647
- up by 1.7 per cent in comparison to the first 14 days of November 2011.
The median selling price over the same period was up by a greater rate of
four per cent to $416,000. The stronger rate of growth for the median
selling price suggests that fewer high-end homes sold this year compared to
last.

"During the first half of November, there were fewer luxury detached homes
sold as a percentage of total transactions compared to last year. The
year-over-year change in the mix of detached homes sold in the GTA, rather
than a change in market conditions, was responsible for a lower than normal
increase in the average detached home price," said Jason Mercer, TREB's
Senior Manager of Market Analysis.


I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
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 ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* 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
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Tuesday, November 06, 2012

GTA and Mississauga real estate market Latest newsletter fshowing sales and prices in the

See the latest newsletter at this link:

Latest Newsletter

or see price graphs at this page:

see graph of prices here

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

Monday, November 05, 2012

GTA Real Estate Sales volumes down between 7 and 15% for monthly figures for November 2012


This is the latest report from the Toronto Real Estate Board on monthly sales figures from November.

I'll publish the complete report shortly and provide a link for you.

Mark

GTA REALTORS® RELEASE MONTHLY RESALE HOUSING FIGURES

TORONTO, November 3, 2012 – Greater Toronto Area REALTORS® reported 6,896 transactions through the TorontoMLS system in October 2012 – a decrease of 7.1 per cent compared to October 2011. There were two more business days in October 2012 versus October 2011. On a per business day basis, transactions were down by 15.6 per cent.*

“Sales have decreased in the second half of this year compared to 2011, especially since the onset of stricter mortgage lending guidelines at the beginning of July. The prospect of higher monthly mortgage payments due to the reduced maximum amortization period has prompted some households to delay their home purchase,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for October transactions was $503,479 – up 6.2 per cent compared to October 2011. The MLS® Home Price Index composite benchmark price, which allows for an apples-to-apples comparison in terms of home attributes, was up by 5.1 per cent.

“We continue to see price increases well above the rate of inflation. Active listings have remained low from a historic perspective, so substantial competition between buyers still exists, especially for low-rise homes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“It should be noted, however, that the annual rate of price increase has been edging lower over the past few months as the market has gradually become better supplied,” continued Mercer.



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

Friday, October 26, 2012

Wednesday, October 24, 2012

Question about GTA market following the drop in Vancouver's real estate marketplace

I had a couple of questions from a reader.

She asked:

Thanks Mark for the statistics. My concern is although the price rise, sales volume drop by 21%. Does this signal that indicate GTA follow Vancouver style?




Media guys says Vancouver also showed high price increase st year with significant drop in sales volume and eventually ended up in falling prices.

and I responded:   Yes, I understand your concern. Many feel that this may spill over to the GTA marketplace. Nobody can predict the future. Our GTA marketplace has slowed slightly over the past few months but it's too early to tell if this is a seasonal slowdown or the beginning of an overall slowdown.   Our prices have not skyrocketed at the same pace as Vancouver over the past 5 or 10 years, so personally, I don't think our market will drop as it has in Vancouver.

and she responded:

Thanks Mark for the clarification. I agree no one can predict the future with 100% certainty.
I too believe sales drop may be seasonal based on the sales trends
2010 -1st half sales were up but 2nd half sales were down.
2011 1st 4 month sales were down but 2nd half was up
2012 First half sales were up but the 2nd half were slow.


and I responded:

  Yes, your analysis and observations are correct, but, as the Royal Bank always tells me when I read about their mutual funds performance, they say, "past results are no indication of future performance" so we must always exercise caution.....   and this is the unsolicited advice I offer you today, 'exercise caution" in our real estate market over the next few months......   All the best!   Mark

Tuesday, October 23, 2012

The price of real estate depends upon.....

This is an interesting article

interest rates and mortgages:
http://www.theglobeandmail.com/report-on-business/economy/housing/higher-mor
tgage-rates-would-hit-households-hard-bmo/article4629849/?cmpid=rss1


What happened in 2008?
After the 2007 inflation?

What happened in 1988-1996?
After the 1970s stagflation?

And what will happen in the future?

Interest rates will stay low FOREVER and EVER?

Live long enough and find out.

The article states: "with signs the real estate market could now be turning
a corner after years of strong growth" and this is true, our market has been
soft since about Labour Day with no reason to rebound between now and
December, this indicates a downturn in prices, it's coming

The Fed's have a bid problem on their hands, with low rates people are
borrowing and increasing their debt but if they increased the bank rate it
would cause panic - what to do?!

I don't feel we are at the precipice of a giant slide in prices, more of a
small adjustment, maybe 10% drop or so and then a leveling out

As long as there are jobs and people are working, the economy should
survive, otherwise.......


I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
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 ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* 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
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Thursday, October 04, 2012

GTA REALTORSR RELEASE MONTHLY RESALE HOUSING FIGURES

this is the latest report from TREB on the sales and average prices for
September


GTA REALTORS(r) RELEASE MONTHLY RESALE HOUSING FIGURES

TORONTO, October 3, 2012 - Greater Toronto Area (GTA) REALTORS(r) reported
5,879 transactions through the TorontoMLS system in September 2012. The
average selling price for these transactions was $503,662, representing an
increase of more than 8.5 per cent compared to last year.

The number of transactions was down by 21 per cent in comparison to
September 2011. However, it is important to note that there were two fewer
working days in September 2012 compared to September 2011. The majority of
transactions are entered on working days. On a per working day basis, sales
were down by 12.5 per cent year-over-year.

"While sales have been lower due to stricter mortgage lending guidelines, we
continue to see substantial competition between buyers. The months of
inventory trend remains low from a historic perspective, which explains the
strong price increases we are experiencing," said Toronto Real Estate Board
President Ann Hannah.

September average selling prices were up compared to last year for all major
home types. Price growth was strongest in the City of Toronto, including
condominium apartments with eight per cent year-over-year growth. All
benchmark home types included in the MLS(r) Home Price Index (MLS(r) HPI)
experienced year-over-year price increases, with substantially stronger
increases for low-rise home types.

"Barring a major change to the consensus economic outlook, home price growth
is expected to continue through 2013. Based on inventory levels, price
growth will be strongest for low-rise home types, including single-detached
and semi-detached houses and town homes," said TREB's Senior Manager of
Market Analysis, Jason Mercer.

Mark

Saturday, September 08, 2012

September 2012 latest figures from the Toronto Real Estate Board

These are the latest figures from the Toronto Real Estate Board

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


GTA REALTORS(r) RELEASE MONTHLY RESALE MARKET FIGURES

TORONTO, September 6, 2012 - Greater Toronto Area (GTA) REALTORS(r) reported
6,418 sales through the TorontoMLS system in August 2012, representing a
year-over-decline of almost 12.5 per cent compared to 7,330 sales reported
in August 2011. The number of new listings reported in August was down by
5.5 per cent compared to the same period in 2011.

"Residential transactions were down in August compared to last year.
Stricter mortgage lending guidelines, which came into effect in July,
arguably played a role. In the City of Toronto, the additional impact of
relatively higher home prices coupled with the upfront cost associated with
the City's Land Transfer Tax led to a stronger annual decline in sales
compared to the rest of the GTA," said Toronto Real Estate Board (TREB)
President Ann Hannah.

The average selling price for August 2012 transactions was $479,095 - up by
almost 6.5 per cent compared to August 2011. The annual rate of price growth
was driven by the low-rise home segment in the City of Toronto, including
single-detached homes with an average annual price increase of 15 per cent.
The MLS(r) Home Price Index (MLS(r) HPI)* composite index, which allows for
an apples-to-apples comparison of benchmark home prices from one year to the
next, was up by 6.3 per cent year-over-year.

"While sales were down year-over-year in the GTA, so too were new listings.
As a result, market conditions remained quite tight with substantial
competition between buyers in the low-rise market segment," said Jason
Mercer, TREB's Senior Manager of Market Analysis. "The trends for sales and
new listings are moving somewhat in synch, suggesting that the relationship
between sales and listings will continue to promote price growth moving
forward."

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
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 ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* 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
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Friday, June 22, 2012

New Mortgage Guidelines in Canada as per Finance Minister Jim Flaherty June 21 2012

Hello, This is a Summary of changes to mortgage guidelines as per Finance
Minister Jim Flaherty...(effective July 9th, 2012)



1) The maximum amortization period for purchases with less than a 20% down
payment will be 25 years (down from 30 years)

2) Home owners will only be able to refinance their homes up to 80% of the
home's value (down from 85%)

3) The government is also resetting the maximum Gross Debt Servicing ratio
(GDS) to 39% and the Total Debt Servicing ratio (TDS) to 44% (Currently, GDS
does not apply to qualified borrowers with credit scores of 680+) ***see
below for info GDS and TDS

4) Mortgage Insurance will no longer be available of homes over $1 million
(you will need to have at least 20% down payment)



OSFI (The Office of the Superintendent of Financial Institutions Canada is
the primary regulator and supervisor of federally regulated deposit-taking
institutions



Also announced the following changes...

1) The maximum loan to value on home equity lines of credit (HELOCs) is
cut to 65% from 80%

2) The loan to value will be re-calculated upon any refinancing and
whenever the lender deems prudent

3) HELOCs will continue to serve as revolving lines of credit with no
specific amortization period. However, OSFI says lenders must now expect
borrowers to have the ability to fully repay HELOCs over time.



Debt Ratios (GDS / TDS Ratios)

Lenders have long relied on two standard measures of one's "ability to pay"
their mortgage:



Gross Debt Service (GDS): The percentage of the borrower's income that is
needed to pay all required monthly housing costs (mortgage payments,
property taxes, heat and 50% of condo fees).



Total Debt Service (TDS): The percentage of the borrower's income that is
needed to cover housing costs (GDS) plus any other monthly obligations that
an individual has, such as credit card payments and car payments.

The acceptable ratios for both have generally been 32% and 40% respectively.

For people with very high credit scores, GDS requirements are often waived
and the TDS maximum is slightly higher (44% as of January 2011).

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
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 ?
www.mississauga4sale.com/internet-evaluation.htm


* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm


* 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
www.mississauga4sale.com/popupquestion.htm


* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm


* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm