Monday, April 30, 2007

Supersizing home trends - most likely over within next decade


Buyers' focus shifting from size to style

Supersized house trend likely over within next decade

The "Supersize Me" era of home building might be coming to an end after a three-decade run.

The size of the average new home swelled by about 50 per cent from 1973 to 2006, but this trend toward expansion will probably be ending in the next decade, according to an elite panel of 135 builders, architects and designers surveyed by the National Association of Home Builders.

In a report released last month, these residential-construction experts said the downsizing tendencies of aging baby boomers, soaring home prices in much of the country and a fundamental change in consumer tastes will dampen future demand for ever-larger homes.

"People kept getting more and more and more space, but felt dissatisfied because the space was not filling a void," said Sarah Susanka, co-author of Inside the Not So Big House.

"The `moreness' they were looking for had nothing to do with size" but rather with the craving for more intimate spaces they could use in more practical ways, she said.

The average size of a new single-family home in the first three months of 2006 was 2,459 square feet, up from 1,660 in 1973.

The size grew even as the average family size shrank, said Gopal Ahluwalia, staff vice-president for research at the builders' association. "So it's not as if people were buying bigger homes for functional use of space. It was about lifestyle. They were buying for the same reasons people buy expensive cars: because they could afford it.''

But a new single-family home will most likely average 2,300 to 2,500 square feet in 2015, as it has since 2001.

Instead of focusing on space, homeowners will turn their attention to what makes that space special.

"People are not necessarily looking for square footage but for a home with a higher level of finish and detail," said Barry Glantz, an architect in St. Louis. "They want granite countertops, Sub-Zero refrigerators, Viking ranges, ceiling treatments, floor treatments. They want all the bells and whistles.''

Not everyone agrees that there is a trend or, if there is, that it's here to stay.

Among them is Kira McCarron, chief marketing officer for Toll Brothers, one of the nation's largest home builders.

McCarron said that during her 21-year tenure with the company, she's heard similar predictions about shrinking home sizes, particularly when consumers get spooked by rising energy costs. But these forecasts have not panned out in the past, she said.

"I don't believe the fundamental dream of bigger, better, more is going to end any time soon," McCarron said. "I think people do like nesting spaces, but I think they like them in their 4,000-square-foot houses. They like the idea of reading areas, where they can curl up in the morning and read the newspaper. But they want one for him, for her, for the kids.''

L.A. Times-Washington Post News Service

Read more about real estate trends

Toronto Real Estate Board (TREB) Average Prices and Graph

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

Wednesday, April 25, 2007

Current Canadian Interest Rate Marketplace HIGHLIGHTS

HIGHLIGHTS of the current marketplace

Easing U.S. core inflation and strengthening retail spending to sooth Fed
Inflation in Canada a concern ahead of next week’s Bank of Canada interest rate announcement

Ask anyone tasked with predicting the direction of
monetary policy in the United States and they’ll
certainly say it has been quite windy on the fence.
Gusts of concern about the persistently elevated
level of core inflation give way to worries about
the economic slowdown with alarming regularity. And
just when there appears to be a consensus supporting
a shift towards a neutral bias, the Fed itself
changes the wind direction (recall the relatively
hawkish minutes to the last FOMC meeting). So it was
a welcome change this week that the flow of economic
data came close to balancing itself out, leaving the
likely woozy Fed-watcher with a moment of calm to
survey the landscape.


The most soothing breeze accompanied March’s
consumer inflation report. All eyes looked beyond
the gasoline-induced rise in total inflation to
focus on the moderation in core, which subsided from
2.7% in February to 2.5%. The core price index
itself rose just 0.06% in the month – marking the
smallest gain in almost two years. More importantly,
the longer term trend in core inflation was also
encouraging, as both the three- (2.3%) and six-month
(1.9%) annualized rates eased in the month. Of
course, a single data point in isolation will not
immediately wash away inflation concerns, but it
represents a step in that direction.


On the other side of the fence, new data this week
suggested that conditions in the housing and
consumer sectors – two areas of particular concern –
may be in better shape than previously thought. The
largest piece of evidence was March’s retail sales
report. The 0.7% increase in headline sales was
largely fuelled by higher prices at the pump,
pushing up the value of sales at gasoline stations.
But the so-called core measure (excluding volatile
sales of autos and those at gasoline stations)
delivered a respectable 0.4% increase. What was even
more encouraging was a large upward revision to
February, which helped boost the three-month
annualized trend in core retail sales to 5.3% from
the relatively anaemic 3.5% pace observed in the
previous month. Even the housing market contributed
an iota of good news as both housing starts and
building permits showed a surprising 0.8% increase
in March. Before breaking out the party hats, it is
important to remind ourselves of the inherent
volatility in this series, which is accentuated by
the fact that virtually all of the new starts were
confined to the Mid-West which in turn was buoyed by
very favourable weather conditions.


So with this week’s economic data presenting a
reasonably balanced view of the U.S. economy, the
key question is, how long the reprieve will last and
on what side of the fence will the final teeter turn
into a tumble? Here, we see the risks staking up on
the downside. As long as the inventory of unsold
homes remains elevated, the housing market will have
further to fall. Meanwhile, the consumer has been
able to weather the loss in wealth from falling home
prices, but they will increasingly have to rely on
other sources of income to sustain their spending.
So far, the labour market has been up to the task,
generating modest employment growth accompanied by
wage gains. Provided that the job market is not
undermined by the recent weakness in business
investment, we believe the Fed will leave rates
unchanged, especially if inflation fails to cool
further.


Inflation on the radar in Canada


Canada’s invitation to the elevated-inflation party
must have been delayed in the mail. But now that it
has arrived, inflation has jumped to the forefront
for financial markets, especially with the Bank of
Canada set to announce their next interest rate
decision next week. Indeed, particular attention was
paid to Thursday’s CPI report for the month of
March. And here, the data was tipped to the
encouraging side in that core inflation backed
modestly away from its recent 2.4% peak set in
February, settling at 2.3%. However, March was the
ninth consecutive month that core inflation was at
or above the Bank’s 2% target. Within the details,
shelter costs continue to play an important, albeit
lessening role in keeping core inflation elevated.
With new home price appreciation expected to cool
across Western Canada, there should be further
easing within this component which will help
alleviate some of the upward pressure on inflation
in the quarters to come.


Despite the slight moderation in March and a cooling
housing market in Western Canada, an above-target
rate of core inflation will be a familiar sight in
the months to come – reflecting the fact that the
economy is operating at its productivity capacity.
While the labour market, with its unemployment rate
at a generational low, stands out as an example of
this reflection, the business sector is following
closely behind. Not only did the Bank of Canada’s
Business Outlook Survey note heightened optimism
among firms, but that capacity constraints were also
increasing. Seeing through the weather-induced fall
in February’s inflation-adjusted retail sales, the
domestic economy remains extremely healthy.
Meanwhile, an evaluation of the trade side, which is
still Canada’s pocket of weakness, has been obscured
to varying degrees by the 15 day CN Rail strike in
February. The greatest effect was captured last week
with the release of international trade which showed
a pronounced decline in exports. This week,
manufacturing shipments also were down, but not by
as much as one would expect – suggesting some
underlying strength. Similarly, wholesalers shrugged
off the strike entirely and registered a surprise
0.8% gain in February. It will take another month or
so of data to see through this volatility, which in
turn will help keep the Bank on hold next week,
although a greater acknowledgement of the risk to
inflation may be warranted. Indeed, the Bank will
have the perfect opportunity to do so in detail next
week with the release of the Monetary Policy Report
on Thursday. Article Courtesy of R.Paul Chadwick Manager of Residential Mortgages, TD Canada Trust

Read more about the current state of the real estate market

Toronto Real Estate Board (TREB) Average Prices and Graph

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

Banks applaud legislation to lower minimum payment needed for mortgage insurance


Banks applaud legislation to lower minimum payment needed for mortgage insurance


Saturday, April 21, 2007

TORONTO (CP) - Canada's big banks are applauding new legislation that lowers the required down payment for mortgages.

The federal government said Friday it is lowering the minimum down payment requirement for mortgage default insurance from 25 per cent to 20 per cent. The new legislation is part of Bill C-37, expected to be proclaimed next week.

BMO Bank of Montreal says homebuyers could save an average of $2,500 in insurance premiums, based on an average home price of $300,000.

"We see a number of customers scrambling to meet the 25 per cent down payment, in order to avoid paying the insurance premium," said Cid Palacio, Vice President, BMO Bank of Montreal. "These changes will allow those homebuyers to reduce their down payment and get into their new home faster."

The new limit also affects individuals who intend to refinance their mortgages.

RBC Royal Bank said a recent survey it did found 39 per cent of Canadians have borrowed against the equity of their home, by either refinancing their mortgage to a larger amount, or by taking out a home equity line of credit.

"Now, with refinancing at 80 per cent, we're making an extra five per cent equity available to our clients for their financing needs," said Catherine Adams, RBC Royal Bank's vice-president, Home Equity Financing.

Scotiabank said it will cover the cost of insurance paid by the few hundred customers whose high-ratio mortgages are currently being processed. These are customers of the bank who would have been exempt from default insurance under the new rules.

Under the existing Bank Act regulations, which have been in place for 40 years, a bank cannot provide a mortgage loan for more than 75 per cent of the value of the property, without having the customer purchase mortgage insurance. Bill C-37 raises the loan-to-value ratio requiring mortgage insurance from the current 75 per cent to 80 per cent.
More on mortgage rates

Toronto Real Estate Board (TREB) Average Prices and Graph

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

Tuesday, April 24, 2007

What Percentage do you think the single home prices will increase annually in the next 5 years in Mississauga?

This was a good question in an email and I thought you may wish to read my response.

DEAR MARK
THANKS FOR SENDING THE VALUABLE INFORMATION ON REAL ESTATE. AT WHAT RATE PERCENTAGE DO YOU THINK THE SINGLE HOMES' PRICES WILL INCREASE ANNUALLY IN THE NEXT FIVE YEARS IN MISSISSAUGA ?. I AM EXPECTING AN HONEST REPLY ON THIS.THANKS .
Arun B.


Hello Arun B.,

Thank you for your real estate inquiry. In my opinion, nobody can predict what the markets will do over that period of time. I can tell you that the market will remain strong for at least the next 1 to 2 months. There are changes in our market. It is not 'on fire' the way it was for the past few years. If you look at this graph, you will see that the market has only continued to climb at a high rate of about 6% to 8% per year since 1995

No matter what anyone has told you, the west GTA market has slowed compared to recent years, it's still a good market but not booming the way it way. People who bought new homes in any year from about 1998 could resell the home for a large profit by the time they closed. This is no longer the case. People who bought new homes last year and have just closed are having difficulty breaking even. This is in spite of the fact that we are at the 'high time' of the year.

Another observation. For the first time that I can ever remember, and I have been tracking prices since I got into the business in 1987, the March average price was lower than the February average price. This is unheard of. For the past 20 years March prices were higher than February, except this year. The price dropped 1%, not a large amount, but it dropped rather than increase. This too is significant and indicated our market is not booming any more. This could change in the future, but for the near future prices are likely to stay about the same as they are now.

My 'best guess' for the long term is that we will see increases in year over year prices, but they will be about 2 to 3% per year and not the 5 to 8% that we have seen in years over the last decade. There will always be pockets that will outperform the average prices and this too is one of the keys when buying real estate. It is still all about location.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

Read more about prices

Toronto Real Estate Board (TREB) Average Prices and Graph

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, April 23, 2007

Wow - Didn't anyone notice this announcement on Down-payment changes in Canada?


Did you hear the latest on mortgages in Canada?

There was a major change to federal legislation regarding high-ratio mortgages in Canada last Friday April 20th. Effective immediately, residential mortgages with a loan to value ratio between 75 - 80% will no longer require insurance through CMHC or GE. This change was announced by the Finance Minister on Friday.

What this means is that you now only require 20% downpayment to avoid those 'high ratio' insurance fees. This coupled with the fact that 30 and 40 year mortgages are now readily available in Canada means two things:

1- affordability has improved dramatically in the past few months as both of these changes reduce either the fees charged or monthly payments.
2- this also means that prices will rise due to more people being able to afford the entry level properties.

This is a significant change in real estate ownership in Canada. I don't think many people noticed or even gave it much thought, but these two changes alone could increase affordability by as much as 30% which also means that house prices will rise due to these two changes. This certainly makes the banks happy, as they will now be able to loan out more money.

Take a $250,000 townhome as an example. You may now use the premium you would have paid for putting only 20% downpayment, which is 1% of the mortgage, so in this case, the mortgage amount with 20% downpayment is $200,000 (since 20% of $250,000 is $50,000 downpayment) and you save $2,000 insurance premium. Now you take a 40 year mortgage the payment is $1056 per month versus a 25 year mortgage $1250/month and your payment difference is $194 per month. At today's rate of say 5.75% this 194 payment is worth an extra $36,000 in mortgage payment, plus the $2000 fee you saved, this all means that you can afford an extra $38,000 most of which can be put towards your purchase price. The bottom line in this example is that you can afford about a $280,000 townhome with 20% downpayment and 40 year mortgage, that's a huge difference and will help to put upward pressure on prices.

Any comments? email me

This also means that thousands of websites and online mortgage calculators, mine included, must all be changed to reflect these changes, no small task! This change is so new that CMHC has not even updated their site to reflect the new rules, as of April 23rd.

You can do mortgage calculations for your situation at this link.

Toronto Real Estate Board (TREB) Average Prices and Graph

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

Sunday, April 22, 2007

CIBC World Markets predicts Canadian house prices will double in the next 20 years

The Canadian Imperial bank of Commerce (CIBC) has issued a press release and they predict that the price of real estate in Canada will double in the next two decades

CIBC World Markets predicts Canadian house prices will double in the next 20 years
Wednesday April 18, 9:00 am ET


- Fears of a decline sparked by demographics greatly exaggerated -
TORONTO, April 18 /CNW/ - CIBC (CM: TSX; NYSE) - Canadian house prices are likely to double in the next 20 years, according to a CIBC World Markets report released today, entitled "Much Ado About Nothing: Canadian House Prices Not Based on Demographics Alone."

"Despite downward pressure from demographic forces, on average, we expect house prices in Canada to double in the next 20 years," says Benjamin Tal, Senior Economist, CIBC World Markets. "Fears of a decline resulting from the downsizing and increased liquidations of houses by seniors and the falling number of first time buyers are highly exaggerated."

The CIBC report compares population growth between two cycles of housing prices, from 1987 to 2006 and from 2007 to 2026, using Statistics Canada's medium-growth, medium-immigration projection as a benchmark.

Between 2007 and 2026, the projected 167,000 net decline in the number of first time buyers (Canadians between the ages of 25 and 44) is marginal, at best, Mr. Tal said. Since this age group is by far the largest contributor to overall housing demand, accounting for almost 68 per cent of all home sales, this relatively modest downturn will not significantly impact housing demand.

The largest decline (2.5 million) is projected for the 45 to 54 age group, as many baby boomers move to the next age bracket. The impact of this change is also expected to be limited, given that the 45 to 54 age group accounts for only 12 per cent of total housing demand. In fact, this moderate decline in housing demand will be partly offset by the strong increase in the age group 55 to 74 and its surprisingly high housing market activity - largely reflecting purchases of vacation and investment properties.

"We estimate that in the coming twenty years, the Canadian housing market will face extra supply of roughly 250,000 houses," adds Tal. "While at first glance this appears to be a large number, it means an average extra supply of only 12,500 homes a year during that period."

Considering that total housing starts during the previous cycle averaged 180,000 per year, builders will only have to reduce new supply to just under 170,000 to completely eliminate any negative demographic influence on house prices compared to the previous cycle.

Concerns regarding the impact of demographic forces on the Canadian housing market were first raised in the late 1980s. However, during the twenty year period from 1987 to 2007, Canada experienced a three per cent annual increase in real home prices.

Although housing market activity in the coming 20 years will fluctuate, CIBC projects that the average real house price will mirror the performance of the past two decades.

"Assuming a two per cent annual inflation rate, this means that house prices in Canada are expected to double by 2026," said Mr. Tal. "This increase, of course, will not be symmetrical - with large cities seeing even larger increases in home valuations."

See average price graph for past 20 years

Toronto Real Estate Board (TREB) Average Prices and Graph

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, April 20, 2007

Toronto’s property taxes still middle-of-the-pack


Toronto’s property taxes still middle-of-the-pack

Property tax increases were a hot-button issue in the City of Toronto’s recommended spring operating budget. A proposed 3.8% increase in property taxes combined with rising assessment values as a result of the strong real estate market have ignited some worry about whether Toronto’s property taxes are out whack with other comparable jurisdictions. Ontario’s budget also addressed the property tax issue with a multi-pronged proposal to improve the transparency and predictability of the system. An evaluation of the recent proposals helps clarify how the city compares on property tax rates and the risks that lie ahead once the current freeze on property assessment values is lifted in 2008.

Do Toronto taxpayers pay disproportionately high property taxes compared to both home values and household income?

Comparisons with other major Canadian cities show that, on average, Toronto’s homeowners are middle-of-the pack in terms of annual property taxes paid as a share of house prices. Average annual property taxes in Toronto account for roughly 0.8% of home value and between 3%-6% of household income depending on housing class. In comparison, both Vancouver and Calgary are in the lower range of taxes as a share of house prices and household income, while both Ottawa and Montreal are in the higher range.

Proposed one-time 3.8% hike not the big threat

The proposed 3.8% hike in residential property taxes this year would be the largest increase in five years and would affect near-term affordability conditions in the city. However, it is a one-time hike and still remains within the realm of rates applied in other jurisdictions. The larger risk from higher property taxes emerges towards the end of the decade after the current freeze on property value assessments is lifted in2008. The combination of higher city tax rates and a jump in property assessment levels through higher market values of homes could pose a more significant challenge housing affordability conditions from 2009 onward.

Property assessments still frozen at 2005 levels

Prior to the introduction of the Current Value Assessment (CVA) approach in 1998,Toronto’s property assessment system was seriously out-of-date with properties having last been assessed in 1940. Ontario adopted the Current Value Assessment(CVA) approach to bring property values up to their market value. The Municipal Property Assessment Corporation (MPAC) is responsible for providing assessed values using the CVA approach on all properties in Ontario.
The CVA represents an estimated market value (the amount the property would sell for in an open market) or the amount that the property would sell for in an arm’s length sale between a willing seller and a willing buyer at a fixed assessment date. From 1998 to 2004, homeowners experienced size able gains in the value of their residential properties. The average resale price of a Toronto home rose by roughly65% during this six-year span.
The rising market value of homes resulted in rising CVAs. Since the implementation of the CVA approach in 1998, home values have been assessed four times — in 1999, 2001, 2003 and 2005. With each reassessment, tax rates are adjusted accordingly depending on the city’s current financial needs. From 1998 up to 2006, the average two-storey homeowner witnessed an increase in annual property taxes from $2970 up to $3716 — an average annual increase of 3.1%.

Concern about the method of property assessment caused the government to freeze assessment values for a two-year period (2006-2007) while MPAC worked to improve the CVA system. Due to the province-wide assessment freeze, municipalities will use the January 2005 estimates to calculate property taxes for the2006, 2007 and 2008 taxation years.

Assessment values to play catch-up in 2009

The two-year freeze on property values has helped shelter homeowners from the more recent rise in the market value of homes in Toronto. Since the last assessment date (January 2005), house prices in Toronto have increased by roughly10%. If prices continue to grow at an annual 4%-5% pace during the remainder of 2007, there should be a cumulative increase of roughly 12% by the next assessment date.

The estimated 12% cumulative increase in average house prices from 2005 to2007 is significantly less than the prior three-year period from 2002 to 2004 when the cumulative price gain was 22%. Toronto’s housing market has had a solid run since the early part of the decade with a disproportionate amount of the appreciation accounted for prior to 2005. So, while there are still risks of upcoming rises in property assessments, the increase is expected to be more muted now that Toronto’s housing market has entered a softer period with price growth and resale activity both continuing to moderate from elevated levels. With most of Ontario also in the midst of a moderating housing market, softer price gains throughout the province should continue.

Ontario budget proposes measures to improve property tax stability and predictability

A proposal in Ontario’s 2007 budget delivered last month introduced some important measures to help mitigate the shock of the rising property assessments scheduled to occur in January 2008. The proposed revisions to the current assessment procedure include:Move to a four-year reassessment cycle;Mandatory phase-in of assessment increases;Enhancements to the assessment appeal sustained the new system, the next reassessment is scheduled to take place for the2009 taxation year based on property values as of January 2008 and the cycle would be ongoing every four years. The increased value of property assessments would be phased-in over four years in four equal increments. For example, an estimated 12% assessment increase would be phased in gradually in increments of 3% over four years. The phase-in feature will be particularly beneficial to help offset the shock for those homeowners who experience significant increases in their property assessments. The program would not apply to assessment decreases.

Affordability conditions remain stable

While rising property values may weigh on affordability conditions more heavily in the later part of the decade, the provincial budget measures will help ease the transition to higher assessment values. Furthermore, Toronto’s affordability conditions have been well-behaved since the housing market crash in the early 1990s.
Affordability underwent a mild deterioration through the first half of 2006 but began to improve toward the end of the year. In fact, Ontario reported an across-the-board improvement in affordability in the final quarter of 2006 driven mostly by a re balancing of markets from a situation of excess demand to more neutral territory.
This year is likely to bring continued improvements in affordability conditions as annual house price gains remain restrained to the 3%-5% range. A softer market ahead will ultimately help limit the risk of size-able property assessment increases when properties are re-valued next year.

Toronto Real Estate Board (TREB) Average Prices and Graph Read more about property taxes

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

Thursday, April 19, 2007

Mortgage Rates - UP or Down? Bankrate predictions - this is very interesting!


Where are mortgage interest rates heading - UP or DOWN?
I receive an email every week from Bankrate.com about what the sentiment is of "mortgage experts" in the country. This is US based, but still very interesting.

Each week, Bankrate.com surveys mortgage experts to gauge the state of mortgage rates over the next 30 to 45 days: Will rates rise, fall or remain relatively unchanged?

This week (April 19 - April 25) the experts say: Lock. They're a little bit more likely to go up than go down or remain unchanged.
PANEL:
Down:
22% Up:
44% Unchanged:
34%

This week, 44 percent of the panelists believe mortgage rates will rise over the next 35 to 45 days. About one-third think rates ill remain relatively unchanged (plus or minus 2 basis points) and the rest believe rates will fall. Read more

You may see our mortgage interest rate trends in Canada


Toronto Real Estate Board (TREB) Average Prices and Graph

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

Wednesday, April 18, 2007

10 quick items you can do to improve your home for sale


These are Ten quick methods to upgrade your home before the sale
By Bankrate.com

Many people see huge dollar signs flash like neon lights whenever they hear the words "home improvement," but there are many things you can do to spiff up the old place without spending a fortune.

Here are 10 low-cost ideas that can pay high dividends to get you started:

10 cheap ways to upgrade your home

1. Make your kitchen look it's best and cook.
2. Give appliances a facelift.
3. Buff up the bath.
4. Paint works wonders.
5. Step up storage.
6. Mind the mechanics.
7. Look underfoot.
8. Let there be light.
9. Reframe your entry.
10. Consider curb appeal.


1. Make your kitchen area better - make it cook.
The kitchen is still considered the heart of the home. For a few hundred dollars, you can replace the kitchen faucet set, add new cabinet door handles and update old lighting fixtures with brighter, more energy-efficient ones. If you've got a slightly larger budget, you can give the cabinets themselves a makeover. "Rather than spring for a whole new cabinet system, which can be expensive, look into refacing the ones you have. Many companies will remove cabinet doors and drawers, refinish the cabinet boxes and then add brand-new doors and drawers at price considerably less than new cabinets. Unless the cabinets are mica, a fresh coat of paint can also do the trick.

2. Give appliances a facelift.If your kitchen appliances don't match try ordering new doors or face panels from the manufacturer. Many dishwasher panels are white on one side and black on the other. It can be as simple as removing a couple of screws, sliding the panel out and flipping it over.

3. Buff up the bath.
Next to the kitchen, bathrooms are often the most important rooms to update. They, too, can be improved without a lot of cash. Simple things like a new toilet seat and a pedestal sink are pretty easy for homeowners to install, and they make a big difference. You can replace an old, discolored bathroom floor with easy-to-apply vinyl tiles or a small piece of sheet vinyl -- often applied right over the old floor. If your tub and shower are looking dingy, consider regrouting the tile and replacing any chipped tiles. A more complete cover-up is a prefabricated tub and shower surround. These one-piece units may require professional installation but can still be cheaper than paying to retile walls and refinish a worn tub.

4. Paint.
New paint makes everything look clean and bright again. And don't forget the ceiling. Paint the trim a contrasting color. Another option: Paint a wall three different shades of the same color. Measure equal sections and use painter's masking tape to mark off each area. Do the bottom of the wall first with the darkest shade. Once it dries, do the middle section with the next lightest shade and so on.

5. Step up your storage.Old houses, particularly, are notorious for their lack of closet space. If you have cramped storage areas, add do-it-yourself wire and laminate closet systems to bedrooms, pantries and entry closets. Firms like ClosetMaid allow you to measure and redesign your closets online. You can also get design details and parts for these systems at many large home-improvement stores. Most closets can be updated in a weekend or less. In the end, your closets will be more functional while you're living in the house and will make your home look more customized to potential buyers when you're ready to sell.

6. Mind the mechanics.Spending a few bucks on nitty-gritty stuff. "It's often very worthwhile to hire an electrician, plumber or handyman for a couple of hours to look over your electrical services, wrap or fix loose wires, fix any faulty outlets, and check for and fix any water leaks," Perry says. "Those details tell a buyer that someone has really taken care of the home and can really influence its price."

7. Look underfoot.
Carpeting is another detail that can quickly update a home and make it look cleaner. A professional carpet cleaning is an inexpensive investment, especially if your rugs are in good shape and are neutral colors. If your carpet is showing serious wear, cover it with inexpensive, strategically placed area rugs. Unless it is truly hideous, most real estate agents don't suggest replacing wall-to-wall carpeting right before you sell your house. The new homeowners may want to choose their own carpeting after they move in.

8. Let there be light.
If you have boring recessed lights in your dining and living rooms, consider replacing one of the room's lights with an eye-catching chandelier. Home stores offer a wide range of inexpensive, but nice-looking, ceiling fixtures these days. Add accent lighting, instead of sticking with the two ordinary lamps that flank both ends of the sofa. Spotlights that plug into existing outlets can direct light to features you want to emphasize, like art or plants. If you have a ceiling fan and light you can also buy replacement fan blades (leaving the fan body in place) to update the fixture's look.

9. Reframe your entry.It's the first thing you, and your guests, will see. Repaint of refinish that front door and if you have a basic steel front door that has gotten dented, consider replacing it with either another inexpensive steel door or a fiberglass, wood grain door for slightly higher cost. Next, replace that worn, flimsy little knob on your main entry door with a more substantial-looking handle-and-lock set. A nice, big piece of hardware signals newcomers that this is a solid home. Then, place two large planters on either side of the front door, with a profusion of healthy plants spilling out. Look for foliage colors and blooms that complement each other. Go for different heights and textures, mix perennials and annuals, blooming and no blooming varieties. If you want to add another touch, tie it in to the front door with a coordinating wreath.

10. What to Consider when it comes to your home's curb appeal.
Although it sounds obvious, a nicely mowed lawn, a few well-placed shrubs and a swept walkway makes a great first impression. As the saying goes, you never get a second chance to make a first impression. What buyers see when they first drive by your home is tremendously important. No matter how nice it is inside, they may never come back. If you don't have a green thumb, consider hiring a landscaper to install some new sod, plant a few evergreen shrubs and give your front yard a good cleanup. These kinds of changes can instantly change people's perception of your home and, therefore, increase its value and your neighbors will love you for it, too.


More Ideas and Suggestions when you sell your home




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

Tuesday, April 17, 2007

Making the switch from "heat" to "cool"


Making the switch from "heat" to "cool"
(NC)-With the dog days of summer almost here, be sure to perform the following before switching your thermostat from "heat" to "cool":

. Clean or replace the furnace filter. The air conditioner needs the furnace to circulate the air. A dirty filter circulates dust and other particles throughout the house and it also cuts down on a furnace's efficiency.

. Check that the set-point on the thermostat is below the room temperature. Do not set the thermostat for cooling below 68 degrees. This can cause a multitude of problems with your air-conditioner, including freezing up. Ideally, set the thermostat to 25.5º Celsius when at home; 29º when away.

. Turn the humidifier off during the summer cooling season. Leaving the humidifier on will only increase the cooling load and force the air conditioner to work harder.

. Close your drapes or shades and ensure all windows in the house are closed

. Close off vents in any unused rooms.

. If you have any ceiling fans, turn them on to circulate the air.

. Place a maintenance call to a qualified contractor to ensure the air conditioning system is operating safely and efficiently. To locate an air conditioning contractor u call a toll-free at 1-877-411-HRAC (4722).

Some government agencies and utilities have recognized the importance of maintaining equipment for better energy efficiency and offer incentives and rebates for homeowners to maintain or replace their air conditioning units.

To see if any such programs are available in your area log onto www.hrac.ca under information library, click onto rebates and incentives.

Credit: www.newscanada.com

More energy saving tips at my site

Toronto Real Estate Board (TREB) Average Prices and Graph

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, April 16, 2007

FORECAST - Canada’s economy set for stronger growth

Toronto Real Estate Board (TREB) Average Prices and Graph Canada’s economy set for stronger growth - states RBC

Canada’s economy softened in 2006 but is set for a stronger performance — returning to its trend growth rate on a quarterly basis in 2007 and then bouncing up to a 3% real rate in 2008.

Tight labour markets + solid balance sheets = strong consumer spending ahead.

The federal government's budget was mildly stimulative and will boost growth by about 0.5 percentage points.

Businesses are in the middle of an investment cycle and are investing in new technologies and boosting capacity.

Inflation remains benign and on track to meet the Bank of Canada’s 2% target in the medium-term.

The Bank of Canada will hold the policy rate steady in 2007, but longer-term rates will rise in the second half of the year in line with U.S. Treasury yields. Rate hikes are likely in 2008. Courtesy of RBC financial

Current interest rates

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

Economy's upward momentum fades a bit - RBC comments

Toronto Real Estate Board (TREB) Average Prices and Graph RBC comments: Economy's upward momentum fades a bit

The economy’s strong upward momentum in late 2006 faded a bit in early 2007 — pulling back to 0.1% in January from December’s robust 0.4% pace. However, output was still running at a 2.1% annualized rate in January and the three-month running rate clocked in at a 2.4% annualized pace, a solid pick-up from the sub-2% pace recorded in the previous seven months.

The economy churned out another 54,900 jobs in March, building on the blockbuster 88,900 gain in January and 14,200 in February. This was the strongest quarterly increase in job growth since 2002. Full-time jobs rose 30,500 while part-time employment increased by 24,500.

Retail sales declined 0.2% in January entirely due to weakness in the auto sector. Excluding autos, retail sales were firmer, rising 0.3%. There were widespread gains in all other sectors and eight of 10 provinces had sales gains.

Housing starts rebounded in March at a 210,900 annual rate from the 196,000 annualized pace in February. Starts averaged a 218,500 unit pace in the first quarter, slower than the 222,200 average rate in the fourth and 8.8% lower than in the first quarter of 2006, suggesting that residential construction will be a mild drag on overall economic growth in the first quarter.

The merchandise trade surplus narrowed to C$4.8 billion in February. Exports contracted 2.1%, reflecting the impact of the rail strike on shipments, while imports rose 0.3% following January's 2% decline. Real exports were running at a 3.1% annualized rate in January-February, while real imports contracted at a 2.1% annualized rate. As a result, the trade sector will still support first-quarter economic growth, although at a more modest rate than the 2.2 percentage-point boost in the fourth quarter.

The all-items inflation index rose 0.7% on a monthly basis in February, the biggest jump since a Katrina-related spike in September 2005. The Bank of Canada’s core rate reached 2.4% year-over-year, which could prove worrisome for policymakers.

Courtesy of RBC financial

More information about our real estate marketplace

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, April 13, 2007

Did the bottom fall out? Overvalued Canadian market or just a matter of time before we follow the US?

I've been reading articles recently about the fact that our real estate market prices have cooled. Will the souring US markets eventually affect our markets here in Canada? Many think this may be the case. Or could this be due to a one month (March) price drop?

This person below seems to think our market prices will fall in the future because we are influenced so much by what happens in the US. Nobody knows for sure, but if the press continues to publish articles like this our markets may follow their lead!

All the best,
Mark


Prepare for lower real estate prices
No guarantee that U.S. meltdown won't spread here

It's hard to find experts in Canada who are concerned that the real estate chaos swirling around next door could hop the border and rattle the housing market here. Well, not yet anyway.

Those who believe the Canadian market is on solid ground will find evidence to support their views when they get a look at housing starts for March (released this morning) and the new housing price index for February (tomorrow). Both are expected to show that Canada's housing market is holding steady amid the downturn to the south.

But if you're the sort of investor who can't help but wonder if Canada must eventually follow the U.S. lead -- a natural instinct given that Canada follows on so many other issues -- you may want to skip the Canadian figures.

Instead, head straight for the words of U.S. central bankers and get their take on housing: The worse it is in the United States, the more reason to worry about the situation here.

This afternoon, the U.S. Federal Reserve releases the minutes from the last Federal Open Markets Committee, on March 21. At that meeting, the committee left short-term interest rates unchanged, but said in its statement that "the adjustment in the housing sector is ongoing."

That is likely code for "quite frankly, the housing sector scares us" -- and the minutes will say more about it.

They have good reason to be scared. In the United States, home prices are tumbling, foreclosures are rising and few are confident the downturn has hit bottom yet. It's a rough time to contemplate buying a home.

Just as worrying, tightening credit conditions and the fact that current homeowners can no longer count on an appreciating market could wreck consumer confidence, which can hit economic growth.

Most Canadians are fully aware of our neighbour's problems. However, the prevailing wisdom is that real estate is a local market and it all boils down to the ''location, location location'' mantra, which should protect us from any sort of copycat debacle.

"Can we say that there are ominous parallels between what is happening in the U.S. and what will happen in Canada? I doubt it," said Bart Melek, senior economist at BMO Capital Markets. "It is a fundamentally different market. The structure is different."

U.S. consumers had to ride an upswing in interest rates from 1% in 2003 to 5.25% today, a much more volatile ride than that experienced by Canadian consumers.

At the same time, U.S. loan requirements -- which included 0% downpayments in some cases -- were far looser. And lastly, the Canadian economy is in better shape.

But there's at least one important factor Canada shares with the United States: overvaluation. House prices here have risen to a point where BCA Research believes they are 28% overvalued, based on comparisons with gross domestic product and competing assets, just as house prices were once widely believed to be overvalued in the United States.

With U.S. prices now coming down, it's not hard to envision a similar price-chop here. Few see it now, but that's the best time to prepare yourself. From National Post article dberman@nationalpost.com David Berman, Financial Post

See recent market trends in the GTA


Toronto Real Estate Board Average Prices and Graph

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

Thursday, April 12, 2007

Power of Sale Properties - Are they the 'great deal' that you think?



Power of Sale Properties - Are they the 'great deal' that you think?

I received an email with some questions about Power of Sale Properties and thought I would post the questions and answers here.

Hi Mark,

... you sent an email to me with all the power of sale properties. When these homes are sold during times of distress, I understood that they would be considerably cheaper than market price. Is that so?

I also want to know if the price that is listed is the “distress” sale price or the market asking price under normal circumstances. Thanks.

Best regards,
D. VD.


Mark's answers and comments:

Good questions.

The short answer on the 'considerably cheaper than market price' is usually not. In fact power of sale properties are infrequently "the great deal" that people read about or expect.

In Ontario these Power of Sale (POS) properties must be marketed at or near fair market value for similar properties in the area for at least the first month. The reason is that the previous owner can go after the bank if they feel the bank undersold the property. Thus the banks are very careful to try and sell the properties at fair market value, at least in the first 30-60 days it's on the market.

Incidentally, I've read that Ontario is the only province that puts POS properties on the MLS listing system. This may be why POS properties are superior opportunities in other provinces. Power of sales in other areas of Canada or the US 'sound' like much better opportunities, but I am not positive on this fact.

One of the difficulties of obtaining any type of a 'great deal' in our trading area (Toronto, GTA, Mississauga Niagara Falls to Barrie to Oshawa) is that so many people have instant access to mls data that it's rare these days to see a property sell for a large amount under market value. There are just too many buyers for every possible area of the GTA that seldom does a 'cheap' property go un-noticed.

I hope this helps you understand one side of the POS equation.

All the best!
Mark

Read more questions and answers regarding Power of Sale and Bank Sales


Toronto Real Estate Board (TREB) Average Prices and Graph

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

Wednesday, April 11, 2007

Royal Bank Report - Fed shifts to neutral policy stance, almost


Royal Bank report - The Federal Govenment shifts to neutral policy stance - or almost

The Fed shifted to a neutral policy stance in mid-March but is keeping the focus on the upside risks to the inflation outlook.



  • Economic numbers have been mixed and, on balance, point to another sub-par quarter for U.S. economic growth.

  • Markets are focussing on the risks associated with the repricing of the housing and mortgage markets and are priced for a lower Fed funds rate.

  • The core inflation rate remains elevated, giving little room for a near-term policy rate reduction.
    However, once the core inflation rate heads lower, the Fed will be in a position to tweak the policy rate down.

  • Interest rates will be range-bound during the near-term, but stronger second-half growth will see some of the froth come off the bond market.

    Source: "Financial Markets Monthly", Economics Departnment, RBC Financial Group.

    Read more about mortage interest rates
    Toronto Real Estate Board (TREB) Average Prices and Graph

    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, April 09, 2007

Buying a house for your child who is attending University or College


This Article covers some of the considerations when Buying a house for your child who may be attending University or College - from bankrate.com

We've all seen a typical student house: Canadian flag in the window, beer bottles on the lawn from last week's -- or last month's -- party and broken windows here and there.

But that image wasn't a concern for Debbie Smith when she and her husband bought a house for their son to live in, while he attended university. "What surprises me is the sense of pride they have where they live -- it's clean, and they even have a schedule to clean the bathroom," says Smith, whose son, Josh, is in his fourth year of agriculture business at Ontario's University of Guelph.

Investing in a second house hasn't produced a huge surplus for the Smiths, but they always planned to help Josh pay for his housing while at school. And this way, he has a little extra cash from the rent his roommates pay to put toward his groceries. Rent from the five tenants covers the mortgage and, in a few years, the Smiths's younger son will also have a place to live during his studies, if he chooses.

Everything has worked out pretty well, says Smith, and she'd recommend it to parents of soon-to-be-students, but there are a few considerations. Not all kids are as responsible as Josh and not all tenants clean bathrooms. If you plan on buying a house for the student in your family, read on to find out what is involved.

Where and what to buy
When trying to figure out what type of property to buy, a townhouse is a good bet. "For the amount of space, with a finished basement, the price and number of rooms, townhouses are always popular," Choose one that has potential to increase in value, so when you sell it, you can help your child pay off any debts he might have incurred during his time at school.

Location is another important factor. Many parents try to buy somewhere close to the school. But depending on the neighbourhood, that might be quite pricey. At the University of Western Ontario, in London, for example, the homes close to campus are older and more expensive than townhouses further away from school.

In people's experience, parents and students are willing to buy outside of the immediate campus area provided they are on a major public transit route and have amenities such as grocery stores close by. So, it's always a good idea to check out outlying neighbourhoods, not just what's within walking distance to campus.

Finding good roommates is key
Smith only advises buying a house if your child is responsible. In his house, Josh isn't responsible for collecting rent cheques, but he does collect each roommate's portion of the utilities. "I can't say he hasn't felt pressure sometimes when he can't get utilities from such and such a kid," she admits, but for the most part, he's kept up his part of the bargain.

She also suggests having your child help find dependable roommates. Josh initially screened the would-be housemates and then passed them over to his parents for a second meeting. The same tenants have been there for the past three years, and it's a good mix of three groups of friends. Smith warns parents to pick wisely: "I recommend not having one group of friends. A couple of pairs works out best, otherwise it will become a party household."

The best scenario is always to try have a family member live in the house. Whether it's a niece, son or daughter, you know someone is there, watching out for your investment. "If you're an absentee landlord, things can get in bad shape," says Irmler. "In general, family members have a good reason to keep the place in good shape."

Mortgage matters
From a financial perspective, having a family member live in the house can also save you from having to make a huge down payment on the mortgage, says Irmler. In general, if there are no family members living in the house, the banks want more security up front. Irmler also sees many couples use the equity in their own home as a buffer on the second mortgage.

Some, but not many, parents will also place the house in the child's name. To do that, the child must qualify for the mortgage on her own. It can be a tricky situation because if there is a default on the mortgage, it lands on the child. "There's a potential negative impact on the child's credit rating in the most important time in their life,"

But, if the child can handle it, and she is able to collect rent every month without too much difficulty, it could help out her credit rating in the future to have a house in their name.

Because the house generates rental income, it will be taxed. If the property is in the child's name, the tax rate will be lower because students tend to be in lower tax brackets than their parents. But most parents put the house in their own name, if for no other reason, to be able to sell the house immediately after their kids graduate.

Also keep in mind that, as with any second property, you must pay capital gains tax on it when you decide to sell.

Before you sell
If, after a degree or two, the keg parties and wild nights have taken their toll on the condition of the house, you might not make any money when it comes time to sell. Even if the house hasn't been damaged and simply lacks ambience or decorating style, you still might get less than the original price.

"If a young couple with a child have decorated and fixed up [an older home], it will go faster than the one-room with a mattress on the floor," says Irmler. She says owners usually go in after the roommates have left to spiff up the house before putting it on the market. She suggests removing the carpet, freshening up the paint and adding a few flowers outside to finish it off.


Mark's comments:

This is a very interesting article and probably applies to many of my clients with children nearing the university years. There are many incentives from a tax point of view in purchasing an investment property for your child and other students to live in during university and possibly beyond. Please take into consideration that you may have RESP's or other education funds that you may be drawing on and this will affect your child's income level and tax consequences. Your child will likely work during the summer holidays and it's easy for a student to earn over $10,000 in 4 months, thus this will eliminate their basic personal exemption, let alone any rental income.

There are many other considerations when buying a property for your child while they are at school, please don't hesitate to contact me with any questions you may have.

Toronto Real Estate Board Average Prices and Graph Investment Property Purchase Considerations

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


Sunday, April 08, 2007

Do Canadian Realtors care about their cities and towns?


Canadian REALTORS(R) care about their communities


OTTAWA, /CNW Telbec/ - REALTORS(R) are actively working to improve the quality of life of Canadians who live and work in their communities, and this was a key theme of the 2007 conference weekend of The Canadian Real Estate Association (CREA).

More than 500 REALTORS(R) and real estate Board and Association staff from across Canada converged on Ottawa for CREA's annual conference weekend, which was held from March 24th to 27th.

The Canadian REALTORS Care(TM) Foundation was officially launched on March 24th. It will coordinate the collection, administration and disbursement of charitable donations on behalf of REALTORS(R) across Canada. The Foundation will also promote the charitable initiatives undertaken by Boards, Associations and individual REALTORS(R) in all provinces.

In the 2007 membership survey conducted for The Canadian Real Estate Association, 66 per cent of Canadian REALTORS(R) said they were active volunteers in their communities. "REALTORS(R) are involved in the community they serve," says Ann Bosley, who became the 60th President of The Canadian Real Estate Association on the weekend. She was instrumental in the creation of the Canadian REALTORS Care(TM) Foundation and served as its first
President.

"REALTORS(R) not only care about where people live, but how they live as well," said President Bosley. "Our REALTOR(R) members should be acknowledged for their tremendous contributions to our communities."

CREA also announced it is the platinum sponsor of a national conference on aboriginal housing that is being organized by Canada Mortgage and Housing Corporation and Habitat for Humanity Canada. The conference will be held in Victoria in October 2007.

This continued commitment to the improvement of aboriginal housing in Canada by Canadian REALTORS(R) was acknowledged by the Honorable Monte Solberg, the federal minister responsible for Canada Mortgage and Housing Corporation. In a convention speech March 27th, Minister Solberg said Canadian REALTORS(R) "have been central in promoting the housing needs of aboriginal Canadians."

Last year the Association developed a major case study on aboriginal housing in Canada as part of its participation in the International Housing Coalition. The study was presented at the World Urban Forum 3 in June 2006.

At the Annual General Meeting of The Canadian Real Estate Association, members also ratified Interpretations clarify how MLS(R) Rules are to be applied across Canada. "The Interpretations do not change any rules, but they will help protect the MLS(R) system and trade marks ensuring that Canadian consumers can continue to rely on the integrity of the MLS(R) system" CREA President Ann Bosley said.

The MLS(R), or Multiple Listing Service(R) trade marks, are owned by The Canadian Real Estate Association, and is licensed to local real estate Boards and Associations operating a local data listing system. The MLS(R) trade mark stands for a co-operative marketing service, comparable to a seal of approval regarding quality of service and information for consumers.

About The Canadian Real Estate Association

The Canadian Real Estate Association is one of Canada's largest single-industry trade Associations, and represents more than 88,000 REALTORS(R) across Canada. CREA's primary mission is to represent its members at the federal level of government and to monitor national legislation affecting or impacting the real estate industry. CREA also works to defend the public's right to own and enjoy property.

Read more about CREA


Toronto Real Estate Board (TREB) Average Prices and Graph

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

Saturday, April 07, 2007

Common Income Tax mistakes and write-offs


Watch out for these common income tax mistakes that people make

With our hefty tax code, it's almost impossible to keep track of all the deductions available to Canadian taxpayers. So it's not surprising that many people miss out and end up paying too much tax.

According to one expert, even those who hire professionals to complete their returns aren't immune.

"So much is riding on the information you provide," says Evelyn Jacks, president of Knowledge Bureau Inc., and author of numerous books about tax return preparation.

"To get the best results, you have to stay informed. If you don't know what information to give, you won't get all the deductions."

With Jacks' help, we've prepared a list of easy-to-overlook tax deductions and reduction strategies to help you complete this year's return and to prepare for next year's.

1) Write off your safety deposit box
Safety deposit boxes are considered part of the carrying charge of holding securities and are deductible from the revenue earned on those securities. According to Jacks, this deduction, though relatively small, can add up over the course of several years.

The Canada Revenue Agency (CRA) lets you amend prior years' tax returns. If you have overlooked deductions in the past but have kept the receipts, it may pay to file an amendment.


2) Carry forward RRSP contributions
Although the vast majority of people take the deduction for their RRSP contribution as soon as they can, it may pay to wait, as the CRA lets you carry forward your RRSP deduction.

If you think you will be in a higher tax bracket in the coming years, you might consider taking the deduction later when it may have a great impact on reducing your taxes.

3) Get a GST refund on union dues
Although most people know union dues are tax deductible, the GST paid on those dues qualifies as a direct tax credit, which means you should get all of it back.

4) Write off your moving expenses
You can deduct moving expenses if you are transferred or if you move to take a new job. But according to Jacks, you should still hang on to your receipts even if you don't find a job right away.

Those deductions will still be valid when you begin to generate employment or self-employment income.

5) Borrow to invest, not to buy a home
A huge portion of typical household debt is comprised of mortgage payments. But many families that owe money on their homes also own investments or businesses. If they do, they are missing out on a big potential tax break.

Because mortgage interest payments are not tax deductible in Canada, as they are in the U.S., a far better strategy is to borrow money against your investments instead of your house. Then your interest payments will be deductible against revenue you earn from those investments.

6) Track all business expenses
Although most small- and medium-sized businesses have good internal controls in place to track their spending and expenses, most self-employed individuals do not. Self-employed individuals should keep all their work-related receipts.

Seemingly minor expenses such as parking fees, meal expenses, (when the object of your meeting is to discuss business) or office supplies add up when accumulated over the course of the year.

7) Split income with your spouse
In many households, one spouse earns more than the other and is consequently taxed at a higher marginal rate. In these cases it pays to transfer income to the lower wage-earner whenever feasible.

There are numerous strategies for doing so, but the rules are complex. Your accountant should be able to help.

8) Contribute to a spousal RRSP
Spousal RRSPs are an excellent way to split retirement income. In fact, you can contribute any part of your regular allowable RRSP contribution to your spouse's plan, even if he or she has already made a contribution that year.

9) Balance capital gains and losses
When you sell an investment that has increased in value, whether it is a stock or bond, you will likely have to pay tax on the accumulated capital gain.

Take this opportunity to sell any money-losing investments you may have, and apply the capital gain against the capital loss that you are taking. You may be able to avoid some, or possibly all, of the tax owing.

10) Keep up to date
It is unrealistic for most Canadians to become tax experts, but that doesn't mean you should play the helpless puppy. If you don't understand something about you taxes, find the answer.

Read more about taxes and the benefits of real estate home ownership
Toronto Real Estate Board (TREB) Average Prices and Graph

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, April 06, 2007

Strong Start to Spring Real Estate Market in the GTA


Strong start to GTA real estate spring market


April 4, 2007 -- Strong resale housing activity in March got the spring market off to a healthy start, Toronto Real Estate Board President Dorothy Mason announced today. A total of 8,518 transactions took place in the month, nearly on par with the 8,707 sales reported last March.

“The market is in great shape, and we’re seeing very strong results on a consistent basis,” Mrs. Mason said. “So far 2007 is slightly ahead of last year’s sales pace, and we’re right on track for another solid year.”

In Scarborough’s West Hill neighbourhood (E10), strong sales of detached homes led to an overall sales increase of 27 per cent compared to March 2006.

Etobicoke’s Mimico / New Toronto neighbourhood (W06) saw transactions increase by 45 per cent compared to last March, fueled by strong detached home and condo apartment activity.

A jump in condominium activity in North York Centre (C14) helped overall sales to a 14 per cent increase compared to March of a year ago.

Overall sales in Thornhill (N02) increased by 16 per cent compared to last March, led by detached home sales.

“The GTA continues to have strong employment numbers and a healthy economy,” Mrs. Mason added.

“Housing activity is solid and prices are steadily on the rise, so it remains an excellent time to be in the market.”

Read more about the real estate market and see prices

Toronto Real Estate Board (TREB) Average Prices and Graph

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

Thursday, April 05, 2007

Mortgage Interest rates may be falling - good news if you have gone short!


Mortage Interest Rates expected to Fall
Some of the so called "Experts" are now saying that mortgage rates will fall this year!

Many experts contend mortgage interest rates, still near their historic lows, will fall as much as 1% within the next year. Mortgage rates are generally tied to bond market yields which, in turn, are tied to the overnight lending rates that central banks such as the Bank of Canada and the U.S. Federal Reserve charge their best clients, such as major banks.

"The single most important thing ... is the U.S. short-term interest rate, determined by the Federal Reserve," says Brad Willock, senior portfolio manager with RBC Asset Management Inc.

Central bank rates in North America were near 20% in the early 1980s, then fell in the wake of terrorist attacks in 2001, to 1% in the United States and 2% in Canada. Overnight rates crept up until June, 2006, remaining on hold since then at 5.25% in the United States and 4.25% in Canada.

Financial institutions, which often try to anticipate central bank moves, reduced long-term mortgage rates slightly in recent weeks, putting fixed rates around 6.5% for terms from six months to five years, and variable rates around 6%. In its March meeting, the Federal Reserve kept its rate unchanged at 5.25%, sending out a mixed message that inflation isn't a big concern but a recession is possible.

"The unemployment rate in the U.S. is at a 30-year low, around 4.5%, and the U.S. central bank won't cut rates when it's so easy to get a job," Mr. Willock says. "But right now it appears to us, given inflation and the economy, that this rate shouldn't be this high much longer. We anticipate the rate will fall in May, June or July, down a point or so over the next year or 18 months."

Benjamin Tal, senior economist with CIBC World Markets, agrees. "We see relatively settled mortgage rates over the next few months with the potential of actually lower short-term rates, given the slowing of the U.S. and Canadian [economies]. Longer term, we believe interest rates will remain relatively low and the next peak will be lower than the previous peak."

Nick Majendie, chief portfolio manager with Canaccord Capital, also sees rates falling. "We think the economy is weakening quite rapidly and could even be close to a recession as we speak. The key reason is that the U.S. is already in recession in the housing and auto sectors. You haven't seen the bottom yet, in our view.

"I think there will be enough evidence of economic weakness by the middle of the year that it will give them the cover to reduce rates. The Fed fund rate is 5.25%. I see it staying at 5.25% until the middle of the year, then the Fed reducing that rate by 1% through to March of '08. The cost of labour has come down globally, but as China and India get more middle class, their wages will go up and that will put upwards pressure on inflation globally."

Aron Gampel, deputy chief economist with Scotiabank, feels rates will fall a bit but could spike at the hint of bad news.

"Our view is that interest rates are going to continue to move lower, probably half a percentage point, potentially even more, between now and the third quarter or year-end, when they bottom," Mr. Gampel says. "We've got the Bank of Canada easing twice, once in the third quarter and once in the fourth quarter. If you're looking at mortgage rates, the balance is shifting to slightly lower and, at worst, they will stay the same. But these markets can shift on a dime and there are a lot of risk factors out there -- a sharply weaker U.S. dollar, which could occur, could force interest rates up and limit how much rate decline you get in long-term mortgage rates."

Read more about Current Mortage Interest Rates
Toronto Real Estate Board (TREB) Average Prices and Graph


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

Wednesday, April 04, 2007

Interest Rates - current sentiment and future forecast

I was browsing the web this morning searching for interest rate news and came across this very interesting website in the US

The site is called bankrate.com and each week they survey mortgage experts to gauge the state of mortgage rates over the next 30 to 45 days: Will rates rise, fall or remain relatively unchanged?

This week (March 29 - April 4) the experts say: Rates probably aren't going anywhere.

PANEL:

Down: 29%
Up: 21%
Unchanged: 50%

This week, half of the panelists believe mortgage rates will remain relatively unchanged (plus or minus 2 basis points) over the next 35 to 45 days. The rest are evenly split among those who think rates will rise and those who believe rates will fall.

They even graph paste results so you may see trends in what the 'experts' are thinking and predicting.

This may be something that you want to look at on a regular basis as the experts tend to know where the rates are heading.

You may see the current rates here in Canada and the best mortgage interest rates at this page

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

A closer look at commissions from the Toronto Real Estate Board Perspective


A closer look at commissions from the Toronto Real Estate Board Perspective

A closer look at real estate commissions

The Toronto Area real estate market has shown steady growth for nearly 10 years, resulting in positive outcomes for consumers, the real estate business and the economy as a whole. However, this period of growth has also led to a number of misconceptions about the business.

Perhaps the most common misconception is that in a hot market, properties "sell themselves" and the REALTOR® has less work to do in order to earn commissions. Many consumers are not aware of how the commission structure works, and given the significant amount of money changing hands in a real estate transaction it is natural for them to want to know where their money is going.
Let’s take a brief look at how commissions work.

When a consumer decides to sell their home, they often agree to pay their chosen salesperson (actually the brokerage) a certain percentage of the selling price of their home upon completion of the sale. This rate is generally specified in the Listing Agreement that is signed by the homeowner and the listing salesperson. As in any business transaction, prior to signing an agreement the consumer should firmly establish the level of service they will be receiving and the fees they will be required to pay.

When a home sells, commission is initially paid to the real estate brokerage that employs the listing salesperson. In most cases a portion of this money - often half - is immediately forwarded to the company working on behalf of the buyer for services provided in bringing the transaction to fruition. The remaining funds, meanwhile, may be distributed in a number of ways depending on the business model of the listing brokerage.

Some brokerages retain a portion of the listing salesperson’s commission for operational costs like company management, rent, office staff, employee training, franchise fees and so on. Other companies may forward all of the commission to the salesperson but charge a significant monthly fee.

A good portion of the commission earned goes toward maintaining the business operation and, of course, marketing and selling the home. Keep in mind that most real estate professionals are paid solely on commission, with no base salary. Their livelihood relies on the level of service they provide their customers and clients.

It is also important to understand that as the real estate market grows, so too does competition for commissions. An active real estate market typically brings in a large influx of new registrants that reduce market share for each individual. For example, the total number of sales in 2005 was 24 per cent higher than in 2001, the beginning of the most recent “hot market.” By comparison, the number of Toronto Real Estate Board Members during that time increased by 33 per cent, to over 23,000 active Members. The 7,000 transactions, on average, that take place each month are divided among these Members. (Mark's comment, if you do the math, that means that each agent is selling 1 home every 3 months, not enough to live on - this means that there are many registered agents that are not selling many homes, make sure you work with an agent that is selling at least 2 homes per month and is 'in the business'!)

Article courtesy of TREB www.torontorealestateboard.com

Read more about real estate commissions

Toronto Real Estate Board (TREB) Average Prices and Graph

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