Thursday, December 20, 2012

Predicting the GTA and Mississauga Real estate market is for fortune tellers and psychics!


Predicting the GTA and Mississauga real estate market future is for fortune tellers and psychics!

All we can really do is analyze the past markets, ascertain trends and historical data and look at what is currently happening to predict what 'may' happen in the future.

I've always said to my clients that I can only accurately predict about 2 to 4 weeks into the future.  That's it, much longer than that time period is more of a best guess.

Volume of sales has continued to be typical and strong, no major drop or trend downward for number of sales - more typcial for this time of year.

Our market average prices have softened since about Labour Day this year and condos seem to be the hardest hit. Prices are still dropping in the market and especially the condo market, not dramatically, but they are dropping.

This is in contrast to the unprecedented growth we have experienced for more than 15 years. The only interruption to that rise in prices was in the fall of 2008

You can clearly see the seasonal trends of prices increasing in the spring and fall at this graph See the Average Price Cycles from January 1995 to Date

The average price fluctuations are shown at this average price graph over the past few months.
Near historic lows for mortgage interest rates have helped.

I don't believe we were in a bubble but our prices were certainly over inflated. The rental market is still very tight. This is good news and indicates that people are working and that there is still a strong need for rental housing. If the rental market softens then our resale market will get hit much harder than it is right now. There are no signs of this happening in the near future and let's hope that our market turns around in the early part of 2013. Only time will tell.

Conclusion: our real estate market will continue to be healthy, prices will continue to drop in the near term, at least until the middle of January.  Check back in mid January to see what our market is doing at that time!
Thank you to all my current and past clients I wish you a Merry Christmas and All the Best to you and your family in 2013!

Mark






For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com
Toronto Real Estate Board (TREB) Average Prices and Graph

Toronto Real Estate Board has released it's mid month figures for December 2012

Toronto Real Estate Board (TREB) Average Prices and Graph
The Toronto Real Estate Board has released it's mid month figures

Prices year over year are up slightly and volume of sales is down

See the full report below

I hope this finds you happy!
Mark

GTA REALTORS® RELEASE MID-MONTH RESALE FIGURES




TORONTO, December 18, 2012 – Greater Toronto Area REALTORS® reported 2,169 transactions through the TorontoMLS system during the first 14 days of December 2012. This number of sales was down by 16 per cent in comparison to the same period in December 2011.



“Stricter mortgage lending guidelines, including a reduced maximum amortization period and a one million dollar purchase price ceiling for government-backed insured mortgages, appear to have had the effect desired by Finance Minister Jim Flaherty.


Some home buyers have put their home purchase decision on hold,” said Toronto Real Estate Board (TREB) President Ann Hannah.

“In the City of Toronto, sales declines have been more pronounced as the effect of stricter mortgage lending guidelines has been compounded by the City’s additional upfront Land Transfer Tax,” added Hannah.

The average selling price in the first two weeks of December was $471,862, representing a three per cent annual rate of price growth.

“Even with the dip in sales since the spring, tight market conditions in the low-rise segment of the market have driven year-over-year average price growth,” said Jason  Mercer, TREB’s Senior Manager of Market Analysis.

“While the average price for detached homes in the City of Toronto was down for the first two weeks of December compared to last year, this dip was due to a different mix of homes sold this year compared to last. There were fewer high-end detached homes sold compared to last year,” 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

Wednesday, December 19, 2012

Average prices for condominium units based upon the number of bedrooms in the Mississauga City Centre breakdown for the 3rd Quarter of 2012


This chart below shows the average prices for condominium units based upon the number of bedrooms in the Mississauga City Centre breakdown for the 3rd Quarter of 2012



 
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
Toronto Real Estate Board (TREB) Average Prices and GraphBUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Friday, December 14, 2012

Average price graph for GTA resale homes 2012


Click the image below to see an average price graph for GTA resale homes
Average price graph for GTA resale homes

Average price graph for GTA resale homes
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, December 06, 2012

Mississauga and GTA real estate market results for last month are now in the books!

TREB reports that the sales volume of homes is down but prices are up year over year.  In fact prices are down from the previous month about 4% and this is a trend we have seen recently.

It could be the time of year or a trend, nobody can know for sure.  We will need to wait a few more months to determine if it's a longer term trend.

See the full report from TREB below.
Mark

See graphs at this link

Sales Dip in November while Selling Prices Increase


TORONTO, December 5, 2012 – Greater Toronto Area REALTORS® reported 5,793 sales in
November 2012 – down by 16 per cent compared to November 2011.

“Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012,” said Toronto Real Estate Board (TREB) President Ann Hannah.


“Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages, have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront Land Transfer Tax takes money away from buyers that otherwise could be used for a larger down payment,” continued Hannah.

The average selling price was up by 1.6 per cent annually to $485,328. The MLS® Home Price Index (MLS® HPI) Composite Benchmark was up by 4.6 per cent compared to last year.

“The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over one-million dollars was down substantially, which influenced the overall average price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The MLS® HPI detached benchmark price, which tracks the price for a home with the same attributes over time, was up by almost six per cent in Toronto, suggesting that market conditions for low-rise homes remain quite tight despite a changing mix of sales,” added 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

UPDATE

see the average price and sales volumes each year since 2001 to 2011 in the table below
historical annual price and sales volumes since 2001 to 2011

Saturday, December 01, 2012

More Reasons to Continue to Buy Newspapers, some funny real estate ads!

These are a few newspaper headlines that my sister in law sent me today, some are very humourus, enjoy!


















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, 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

Thursday, June 21, 2012

GTA REALTORSR Report Mid-Month Resale Housing Market Figures

Below is the mid month report from the Toronto Real Estate board regarding
sales in the GTA

Summary


* Sales activity is flat compared to June of last year
* Sales price was up over 8% from last year

This is the entire report below


GTA REALTORS(r) Report Mid-Month Resale Housing Market Figures

TORONTO, June 18, 2012 - Greater Toronto REALTORS(r) reported 4,597 sales
through the first 14 days of June - a result that was on par with the strong
sales activity reported in the June 2011 mid-month release. While sales were
flat on a year-over-year basis, the total number of new listings entered
into the TorontoMLS system was up by 16 per cent to 8,382.

"Sales growth continued to be much stronger outside of the City of Toronto
in the first half of June. While higher average home prices and slower
listings growth in the City of Toronto likely explain some of the disparity
in sales growth, recent polling suggests that the City of Toronto's Land
Transfer Tax is having a substantial impact on where many households are
looking to buy," said Toronto Real Estate Board President Richard Silver.

"Recent polling indicated that three-quarters of people in Toronto and
surrounding 905 regions who are planning to move over the next two years
said that they are more likely to move outside of Toronto specifically
because of the added upfront costs associated with the Toronto Land Transfer
Tax," continued Silver.

The average selling price for transactions during the first two weeks of
June was $516,834 - up by over eight per cent compared to the average of
$477,025 reported for the first two weeks of June 2011.

"The annual rate of price growth remains very high in the GTA. Increased
listings will result in more balanced market conditions over the next year,
but it will take some time before price growth will moderate to a more
sustainable pace. Right now, months of inventory remains very low from a
historic perspective and will likely not climb back to the pre-recession
norm until 2013," 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

Monday, June 11, 2012

Current mortgage interest rates in the GTA!

Current mortgage interest rates are excellent in the GTA!
See the rates below for samples of what is posted and what you can obtain,
not much better time than now to get a mortgage!
Mark



Best Rates

Terms Posted Rates Our Rates
6 MONTHS 4.45% 4.40%
1 YEAR 3.20% 2.75%
2 YEARS 3.55% 3.09%
3 YEARS 3.95% 3.19%
4 YEARS 4.64% 3.19%
5 YEARS 5.34% 3.14%
7 YEARS 6.35% 3.99%
10 YEARS 6.75% 3.99%
Rates are subject to change without notice. OAC E&OE


CURRENT PRIME RATE IS 3.00%

PRODUCT RATE
Variable Rate Mortgage: 2.90%




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, May 22, 2012

Real Estate Predictions for the GTA marketplace

These are my observations of the current and future GTA and Mississauga Real Estate Marketplace.

Many are predicting a "market crash"

Many have been predicting we are in a bubble in the GTA for about the past 2 years or so. Certainly the market is overheated. There are many reasons for this.
*
Lack of supply and low interest rates have pushed up prices to record highs.
*
There is uneasiness in the economy, especially the USA and global areas.
*
The underlying economy doesn't support the rise in the market, we've drawn the people into the market due to low rates.
*
Consumer confidence is lower and so is the supply of listings, people are feeling a little less confident to move up, so this is the reason that the number of listings is down and has been down since 2009.
*
Once the job market and Europe and USA economies pick up then consumer confidence will improve and then they'll put more homes on the market and we should have a more balanced market.

The condo market is the area that I see softening a little over the next couple of year, many new buildings coming on stream and this may create a bit of a glut of condos on the market - prices for condos are already
softening. Once rates begin to rise, probably not until late next year, first time buyers will not be able to buy as much as they are now and the market should adjust somewhat.

This is what I see for the next 6 months or so:
1.
Prices will rise in the next few months due to high demand and low supply.
2.
Ownership should remain flat and fewer first time buyers on the market as the rates increase along with more listings thus slower price growth.
3.
There are considerable opportunities to purchase for long term price growth in some of the outlying areas, such as Brampton, Milton, Burlington and north Oakville. This would be similar to what we have seen in
Mississauga with price increases from the mid 90's to 2010 or so.
4.
I feel the condominium investor should be very cautious as we may see a pullback in prices which will help stabilize the marketplace.
5.
Thus, I don't see any "crash" in the marketplace, just a softening of prices, but not at least until the 3rd or 4th quarter this year.

I have been uneasy about the marketplace since about 2002 and we continue to see year over year price increases. The average price has increased for 17 years in a row, see the graph
<http://www.mississauga4sale.com/TREBavg1995date.htm> here and here
<http://www.mississauga4sale.com/TREBprice.htm#graph> , this makes me a little uneasy, but the fundamentals of the marketplace and the economy are far different compared to any time in the past.

I hope this helps you with your real estate decisions. You will have to make your own decision based upon your personal situation and how you feel about the marketplace, I know it's not easy.

Maybe you want an over the internet evaluation of your home just to give you an idea of your current value. We can do this with no obligation. Would you like a Complimentary
<http://www.mississauga4sale.com/internet-evaluation.htm> & Quick Over-The-Net Home Evaluation ?

Mark

Friday, May 18, 2012

2.99% for 4 Year Mortgage! Mortgage interest rate promotion

I recently was emailed a fabulous mortgage rate promotion. See the rates
below.

Thanks to recent renewed trouble in Europe, we see some new mortgage rate
promotion.




4 year fixed at 2.99%, fully qualified deals only. This promotion is ending
at May 22.

3 year fixed at 2.99%.

Please let me know if you have any other questions or require further
information about this promotion.

Thank you,

Mark

Friday, April 06, 2012

Latest Toronto GTA real estate marketplace from the Toronto Real Estate Board April 2012

This is a summary of the latest GTA real estate marketplace from the Toronto Real Estate Board

Average price in March as $504,117 up 10% compared to March 2011 and volume of sale are up about 8%


See the graphs at my site


Read the full report below.

GTA REALTORS(r) Report Monthly Resale Housing Market Figures

Toronto, April 4, 2012 - Greater Toronto REALTORS(r) reported 9,690 sales through the TorontoMLS System in March 2012. This result was up by almost eight per cent in comparison to the 8,986 deals reported during the same period in 2011.

"The GTA resale market has not suffered from a lack of willing buyers this year. Buyers have been spurred on by the positive affordability picture brought about by low mortgage rates," said Toronto Real Estate Board President Richard Silver. "The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average."

The average selling price in the GTA was $504,117 in March - up by 10.5 per cent in comparison to March 2011.

"The number of new listings was up last month in comparison to March 2011.



However, based on the historic relationship between price and listings, the GTA resale market should be better supplied. If competition between buyers remains as strong as it is right now, we will almost certainly see an average selling price above $500,000 for 2012 as a whole," 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

Wednesday, March 28, 2012

Mortgage Rates On The Rise

Just as soon as I posted that fixed rates are currently excellent and it's a great time to lock in, then I received the email below that fixed mortgage rates are on the rise!

Could be time to lock in..... read below

Mark


_____

From: Mortgage consultant
Sent: Tuesday, March 27, 2012 8:51 PM
Subject: Mortgage Rates On The Rise

Mortgage Rate Bulletin

RBC and TD have announced mortgage rate hikes effective this Thursday March
29th... Other lenders are sure to follow!

Get your applications in now to get your 120 rate holds before rates go up.

10 year fixed rates still available at 3.99% and are looking better and
better right now!

5 year fixed rates still available at 2.99%

If you need mortgage help, please contact me!

Mark

Are rates about to increase? Mortgage Interest Rate outlook

We have seen a price war for 4 year mortgage interest rates for the past couple of weeks. BMO was one of the first out of the gate to offer 2.99% for a 4 year mortgage, the other banks and lenders followed shortly thereafter.
Now you can see 5 and 10 year mortgage interest rates at absurdly low levels.
I've seen 5 year fixed rate mortgages at 3.5% which is unbelievably low.
Fixed rate mortgages are very attractive right now.
I've written many articles about staying with short term mortgage rates at this page:
<http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm>
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm
My preference for many years has been to go variable, but if you are not a gambler, then it could be getting close to the time where you lock in your mortgage.
Read the article below that just appeared in the POST, it's very interesting what the experts are saying.
Stay Tuned.......
All the best!
Mark


The logic is pretty simple. You hit rock bottom and there is no where else to go but up.




Mortgage rates on terms of five years and 10 years have never been this low. You can go back 50 years and not find a rate of 2.99% from one of the major banks for a fixed-rate product for five years. The 10-year, an almost unheard of length for most Canadians to commit to, has touched down at below 4%. Even sticking it out with a variable-rate product linked to the prime lending rate still looks pretty good with most major financial institutions offering some type of discount off their 3% floating rate. Already there are signs rates could be on the increase. The bond market - which mortgage rates are based on - has been rising fast and the big banks say their most recent specials will come to an end this week. But even with a 50 basis point increase, a five-year fixed closed mortgage of 3.5% is almost unheard of historically. "Everybody is looking at the bottom here and thinking, 'When are rates going to go up?'"  .Even among the experts, few foresaw this price war in the mortgage sector. "With the big banks getting very aggressive again, it took a lot of people by surprise," said Mr. Mangaroo. "I think people were thinking the status quo would hold for a while." .He says the last Bank of Canada announcement about the economy had people thinking at some point the overnight lending rate, which impacts the prime lending rate, would go up, but not this year. "Now that people are thinking of early 2013, that has people talking but really that is just so far out says Mr. Mangaroo. "It's really just an abstract concept at this point." Craig Alexander, chief economist with Toronto-Dominion Bank, says he can understand how there might be some fatigue from consumers hearing about rising rates. "Unfortunately, we have been saying for years 'that's it, rates can't go any lower than they are today' and then they are [lower] 12 months later," Mr. Alexander says. .But this time out, he says, it almost seems impossible that rates on a five-year closed mortgage could go lower than the current 3%. "Short of the Canadian economy going into a recession and causing the Bank of Canada to cut rates back to their all-time low, there really isn't an environment that would lead to significantly lower mortgage rates," Mr. Alexander says. "The downside here is extraordinarily limited." The real risk for the consumer might be not locking in right now. While no one is expecting the overnight rate to go up anytime soon - discounts off the prime lending rate might even improve if the economic uncertainty calms in some parts of the world - the 50-year-low rates today could become hard to find. "If the economic forecasters are wrong about the outlook for growth and things turn out better than anticipated, then bond yield will rise, we'll have a steeper yield curve and higher fixed mortgage rates," Mr. Alexander says. "You won't be able to get what is offered today in 12 months time. They could go up half a percentage point or higher." In the interim, Gregory Klump, chief economist with Canadian Real Estate Association, says in terms of profitability, there is room for the banks to go lower on rates, but margins for the banks are so thin he doesn't expect it happen. "We are not out of the woods yet in terms of a clear picture that growth is going to strengthen," says Mr. Klump about the catalyst that could drive up bond rates, which would impact mortgage rates. "My own view is growth may well weaken." He predicts that any rise in rates will happen slowly, which the housing market would more easily absorb. "I do not expect it," Mr. Klump says about the type of interest rate shock that could send housing sales tumbling. Author Garth Turner, a noted pessimist on the fortunes of housing these days, thinks those who want to be in the market for a house should probably be grabbing on to long-term products. He says the banks know the housing market is already shrinking and are scrambling for a larger share of the mortgage market, something that also allows them to cross-sell other products like RRSPs to consumers. "The writing is already on the wall, prices will be declining," Mr. Turner says. "The Bank of Canada will be raising rates." A Bank of Canada hike will make variable rates rise fast, and he agrees the present day rates could look very good in a few years. "If you want to be a homeowner, it is an appealing product. Three or fours years from now, these rates could look absurd. I have no problem with being in real estate as long as it's not the bulk of your net worth. If you are getting into real estate now though and leveraging up, you are going to be unhappy about it," says Mr. Turner, adding the raising rate environment will hurt sales and prices will follow quickly. Don Lawby, chief executive of Century 21, says the rate wars going on right now combined with the unusually warm winter have already boosted housing sales, which could leave little demand left for the spring market. "Interest rates are low and they probably can't go any lower than they are," says Mr. Lawby, who thinks there is not much room for housing prices to go higher. "I looked around and say if the local economy stays good, the market can stay good. But these low rates are very key."

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, March 23, 2012

Mid-month report for March 2012 from TREB Real Estate

GTA REALTORS® Report Mid-Month Resale Housing Market Figures

TORONTO, March 19, 2012 –During the first 14 days of March, Greater Toronto REALTORS® reported 4,215 transactions through the TorontoMLS system, representing a seven per cent increase compared to the same period in 2011. The number of new listings was down by two per cent year-over-year to 6,970.


“Home buyers continue to benefit from the affordable housing situation in the GTA. Immigration to Toronto and surrounding areas adds to the pool of home buyers every year. The economic and ethnic diversity found in the GTA consistently attracts newcomers and foreign investment,” said Toronto Real Estate Board (TREB) President Richard Silver.


The average selling price for transactions between March 1 and 14 was $502,155 – up by more than nine per cent compared to the first 14 days of March 2011. On average, homes sold for 100 per cent of the asking price within three weeks.


“Strong competition between home buyers in many parts of the GTA has resulted in sellers realizing their asking price in a short period of time. The fact that homes are selling for 100 per cent of the asking price, on average, suggests that sellers are very much in tune with the current market situation and know the fair market value of their home,” said Jason Mercer, TREB’s Senior Manager of Market Analysis











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

Average Housing Prices for Major cities across Canada


CMHC published a report showing the average MLS price in each major city in Canada for 2010, see the image below:


























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, March 21, 2012

This is the latest Economic News from TD Canada Trust

Below is the latest report from TD Canada Trust with regards to the economy and decided to keep the federal funds interest rate unchanged at 0% to 0.25% until at least the end of 2014

This is good news if you are borrowing money over the next 2 years! See the press release below
Please let me know if you have any other questions or require further information.

Thank you,

Mark



Data Release: FOMC maintains the status quo, provides no sign of further
stimulus discussion

The Federal Open Market Committee decided today to keep the target range for
the federal funds rate unchanged at 0.0% to 0.25% at least through
late-2014. The Committee also decided to continue its program to extend the
average maturity of its holdings of securities - "operation twist".


Supporting their decision, FOMC members noted that, despite the recent
decline in the unemployment rate, unemployment remains high and they still
expect it to gradually decline towards levels consistent with the Fed's dual
mandate.


They also characterized the economic outlook as one of "moderate" economic
growth and "temporary" higher inflation caused by the recent spike in crude
oil and gasoline prices.


Moreover, committee members acknowledged the easing of global financial
markets strains, but reaffirmed their concern that those strains continue to
pose significant downside risks to the economic outlook.


Jeffrey Lacker once again expressed his disagreement with the after-meeting
communiqué. In particular, Mr. Lacker does not share the view that economic
conditions are likely to warrant exceptionally low levels of the federal
funds rate through late-2014.


Key Implications


At its previous meeting in late-January, FOMC members had decided to extend
the conditional commitment to low interest rates from mid-2013 to the
current late-2014 stated date. In addition, they had provided clarification
on how the FOMC interprets its dual mandate of price stability and maximum
employment. Lastly, to further enhance the Fed's communication strategy,
they had released interest rate projections from all committee participants.
Given this precedent, there was very little expectation heading into today's
meeting that the after-meeting communiqué would deliver anything more than
what it actually did.


Recently there has been some speculation about the possibility that the Fed
could engage in "sterilized" bond purchases as a way to keep a lid on
interest rates while avoiding a potential inflationary expansion in money
supply. The recent improvement in labor market data, combined with the rise
in gasoline prices observed since the FOMC last met certainly did not set
the ground for any mention of further monetary stimulus in today's
statement.


o see if that discussion actually occurred at today's meeting, we will have
to wait until the Fed releases the minutes on April 4th.


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

Monday, March 19, 2012

Is it time to lock in your mortgage rate?

I was asked by Harry

"Hi Mark,

Hope all is well.

I have been on variable rate since I spoke with you last. I have an opportunity to lock in my mortgages at 2.99% for 4 years. Is it a wise move under today's conditions?

Thanks in advance.
Harry"

Hello Harry,

Yes, I saw this rate and blogged about it last week! Not sure if you saw it or not:

Long term mortgage rates

It's a judgment call on your part, there are some severe restrictions that you must be aware of. There are discounts on these 'posted' rates, so ask for a discount.

We may find that the variable rates drop again to prime minus, maybe they will go to prime minus .9% again and that's 2.1% and you may regret the 2.99%

Funny thing is, when rates were 10 to 14% for about 15 years in the late 80's to early 2000's you would have jumped at 2.99% and thought you won the lottery.

Our mortgages are all variable, prime minus, so I'm still staying where we are for at least the next 6 to 12 months or most likely longer.

Again, it's how much risk you are willing to take.

I wish you the best and let me know what you decide!
Mark

Friday, March 16, 2012

ADU's or Additional Dwelling Units in Mississauga, Toronto and GTA - Update

This is a minor update to the law and Bill 140 that changes the planning act in Ontario to allow second dwelling units in detached, semi detached or row dwellings, with the following definitions and changes.

Specifically the act now states:


Amendments to Planning Act

1. Clause 2 (j) of the Planning Act is repealed and the following
substituted:

(j) the adequate provision of a full range of housing, including
affordable housing;

2. Section 16 of the Act is amended by adding the following subsection:

Second unit policies

(3) Without limiting what an official plan is required to or may contain
under subsection (1) or (2), an official plan shall contain policies that
authorize the use of a second residential unit by authorizing,

(a) the use of two residential units in a detached house, semi-detached
house or rowhouse if no building or structure ancillary to the detached
house, semi-detached house or rowhouse contains a residential unit; and

(b) the use of a residential unit in a building or structure ancillary to
a detached house, semi-detached house or rowhouse if the detached house,
semi-detached house or rowhouse contains a single residential unit.

3. (1) Subsection 17 (24.1) of the Act is repealed and the following
substituted:

No appeal re second unit policies

(24.1) Despite subsection (24), there is no appeal in respect of the
policies described in subsection 16 (3), including, for greater certainty,
any requirements or standards that are part of such policies.

(2) Subsection 17 (36.1) of the Act is repealed and the following
substituted:

No appeal re second unit policies

(36.1) Despite subsection (36), there is no appeal in respect of the
policies described in subsection 16 (3), including, for greater certainty,
any requirements or standards that are part of such policies.

4. Clause 22 (7.2) (c) of the Act is repealed and the following
substituted:

(c) amend or revoke the policies described in subsection 16 (3),
including, for greater certainty, any requirements or standards that are
part of such policies.

5. Subsection 34 (19.1) of the Act is repealed and the following
substituted:

No appeal re second unit policies

(19.1) Despite subsection (19), there is no appeal in respect of a
by-law that gives effect to the policies described in subsection 16 (3),
including, for greater certainty, no appeal in respect of any requirement or
standard in such a by-law.

6. The Act is amended by adding the following section:

By-laws to give effect to second unit policies

35.1 (1) The council of each local municipality shall ensure that the
by-laws passed under section 34 give effect to the policies described in
subsection 16 (3).

Regulations

(2) The Minister may make regulations,

(a) authorizing the use of residential units referred to in subsection 16
(3);

(b) establishing requirements and standards with respect to residential
units referred to in subsection 16 (3).

Regulation applies as zoning by-law

(3) A regulation under subsection (2) applies as though it is a by-law
passed under section 34.

Regulation prevails

(4) A regulation under subsection (2) prevails over a by-law passed
under section 34 to the extent of any inconsistency, unless the regulation
provides otherwise.

Exception

(5) A regulation under subsection (2) may provide that a by-law passed
under section 34 prevails over the regulation.

Regulation may be general or particular

(6) A regulation under subsection (2) may be general or particular in
its application and may be restricted to those municipalities or parts of
municipalities set out in the regulation.

7. Subsection 39.1 (3) of the Act is repealed and the following
substituted:

Area and time in effect

(3) Despite subsection 39 (2), a by-law authorizing the temporary use of
a garden suite shall define the area to which it applies and specify the
period of time for which the authorization shall be in effect, which shall
not exceed 20 years from the day of the passing of the by-law.

Commencement

8. (1) Subject to subsection (2), this Schedule comes into force on the
day the Strong Communities through Affordable Housing Act, 2011 receives
Royal Assent.

Same

(2) Sections 2 to 6 come into force on a day to be named by proclamation
of the Lieutenant Governor.




Also, the other additions to the planning act are as follows:


amendments to Planning Act

Schedule 2 amends the Planning Act.

Clause 2 (j) is replaced to add a reference to affordable housing to the
matters of provincial interest under section 2.

The new subsection 16 (3) requires an official plan to have policies that
authorize the use of a second residential unit.

The amendments to section 17 provide for there to be no appeal of a decision
to adopt or approve the second unit policies.

The amendment to section 22 provides for there to be no appeal in respect of
a request to amend or revoke the second unit policies.

The amendment to section 34 provides for there to be no appeal in respect of
a by-law to give effect to the second unit policies.

The new section 35.1 requires councils to pass zoning by-laws to give effect
to the second unit policies. The Minister may make regulations that
authorize the use of, and prescribe requirements and standards for, second
units. Such regulations will prevail over a zoning by-law passed by a
council.

The amendment to section 39.1 increases the period of time a by-law may
authorize the temporary use of a garden suite from 10 years to 20 years.

The entire bill can be found at this page:

http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en
<http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=2440&deta
ilPage=bills_detail_the_bill&Intranet
>
&BillID=2440&detailPage=bills_detail_the_bill&Intranet

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, March 15, 2012

City of Mississauga had posted some good information about Second Units, Accessory Dwelling Units

The City of Mississauga had posted some good information about Second Units, Accessory Dwelling Units on their website that allowed them under certain circumstances:

http://www.mississauga.ca/portal/residents/accessorydwellingunits

With Bill 140 there are many steps that must be taken to ensure the ADU's are put into place and will comply with all building, fire and other codes and regulations

The City of Mississauga is having public meetings and listening to public input, read more about workshops here:

http://www.mississauga.ca/portal/residents/housingchoicespublicconsultation

as well there is an FAQ section for the city website:

http://www.mississauga.ca/portal/residents/housingchoicesfaq

Stay tuned, this will become a major change in the City of Mississauga, Toronto and all of Ontario

Mark

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
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

Monday, March 12, 2012

What does the as is - where is term mean when you purchase a Power of Sale property

I was recently asked about the term 'as is - where is' when it pertains to a
Power of Sale property.

The question was:

Hi Mark,

I am enjoying your newsletter, and want to thank you for the vast amount of useful information on your web site.

I have a couple questions for you. Could you provide details regarding listings that I have found recently that post properties as being sold under "As-Is, Where-Is" conditions. Is it safe to assume that an "As-Is" sale is typically a power of sale situation (where the seller is a bank, who in turn is offering no warranties whatsoever? And what about the "Where-Is" stipulation??


The term suggests to me that there is perhaps some issue of encroachment on property lines or set-backs, or that there is some other non-conforming aspect to the property.


Your help in this matter would be greatly appreciated.


John




Hi John,

Thank you for your kind comment, glad you are finding my newsletters it useful.

I can't really give legal advice regarding 'as is - where is' this is a legal term used in contracts. Suffice it to say, as you have pointed out, that yes when you see this on a listing it is used most often in Power of Sale situations. It's also used in estate sales and other situations too.

Since the onus of disclosure is on the seller to disclose "material facts" that may affect market value, this is why the banks and others) use the as is where is clause. When a bank is selling, they don't know anything about the property and really have 'no knowledge' about the property and don't want to spend time or money investigating the condition of the property to give proper disclosure, thus again, the as is where is.

We agents interpret the "as is, where is" to mean that you are purchasing the property in as is condition, no warranties whatsoever for anything. The "where is" is likely as you say, plus you are accepting chattels and fixtures 'where is' and where they are located and no express or implied warranty as to working condition or meeting any building code, electrical or plumbing codes or guidelines etc. Encroachments, easements, rights of way and any other outside influences and affect on market value are also assumed by the purchaser

Theoretically, when you purchase as is where is, you are literally buying the property in it's current state. This is also part of the reason that the banks usually insert a clause into the offer that you the buyer are NOT allowed back into the property once the agreement is finalized. They don't want anything happening to the property between agreement date and closing.

So what does this mean to you as a buyer? You need to have full inspections and I even recommend knocking on neighbors doors to see if they know of any current of past problems related to the property. Many times the properties are grow houses or meth labs and are in need of major renovations and improvements. Neighbours can be helpful with this too.

How big is your risk buying one of these properties? It depends. If you are buying a home in a typical subdivision and you get good information on similar homes and such, I think the risk is minimal. If you are buying a unique home or property and you skimp on inspections or due diligence, your risk could be significant. After all, with an "as is - where is" property, whatever problems you discover after you close on the property become your issues to rectify and most important is that you will have no recourse against the seller after the closing.

In a nut shell, you must do your due diligence ahead of time. Such as home inspection, legal investigations, by law inquiries, etc, before you submit your offer, or at the very least make your offer conditional upon these inquires. The practical problem with this is that typically in power of sale situations there are multiple offers, and the offers with conditions are often not accepted. With that said, the banks also realize that purchasers must do their due diligence and will often accept conditional offers as long as the conditions and time periods of the conditions are reasonable.

Great question and no short answer! This is why in all POS situations I insist that the buyer consults their lawyer ahead of time, it's very complicated and presents many obstacles and potential issues. Please let me know if you have any other questions or require further
information.


Thank you,


Mark

Friday, March 09, 2012

Donald Trump unveils new Trump Towers in Toronto Ontario Miss California would be proud!




This is the latest information about the Trump Towers in Toronto

on their website, they state "You have just arrived at an incredible new standard of luxurious living. You are met by an exquisitely designed stone, steel and glass façade that rises 60-stories above an impressively redefined Toronto skyline. The lobby doors open and the attentive and friendly five-star staff welcome you inside. A grand piano’s gentle melody transforms your state of mind."

The $500-million Trump tower is the first of three luxury hotel-condominium projects opening this year in Toronto, after The Ritz-Carlton opened last year. The Four Seasons Hotel and Private Residences and the 66-storey Shangri-La Toronto are also set to open this year.
Toronto’s rise of luxury hotel residences follows a record year for tourism, with more than 9 million hotel-room nights sold in 2011, according to Tourism Toronto. The industry association said the availability of luxury hotel options attracts “high-value visitors” to the city.


Luxury Hotel Condominiums & Residences in the Heart of Downtown Toronto
Trump International Hotel & Tower Toronto, Canada’s tallest residential building, opens Tuesday, capping a seven-year effort to bring the brand of billionaire Donald Trump to the country’s largest city.

Trump International Hotel & Tower® invites you to create your own unique oasis within the heart of this magnificent city. From its coveted vantage at the intersection of Bay and Adelaide, residents and guests will enjoy first class access to all Toronto has to offer.

Situated on the northwestern shore of Lake Ontario, Toronto boasts lush parks and historical neighborhoods. The financial hub of Canada, major banks, financial institutions and insurance companies all call Toronto home.

A true international, multi-cultural city, Toronto has earned global recognition as a leader in not just the financial world, but also the performing arts, museums, art galleries, international cuisine and a thriving nightlife scene. Culture cravers love it. International travelers feel welcome. The discerning identify with its sophistication. Business executives appreciate its efficiency.


other comments by buyers:
The tower’s distinctive design and unique spire of light soaring 277 metres up the side of the building into the sky where it inscribes a signature on the city’s skyline was another deal maker.

“Several of these kinds of towers have gone up in Toronto, but the colour and design of this one really appealed to us




Security and privacy are paramount.

Owners and their guests access via a separate entrance and are whisked to an exclusive residents-only lobby on the 32nd floor staffed by a full-time concierge.

Building setback allows for spectacular views from units with 11-foot ceilings and luxurious appointments where “no detail has been left to chance.”









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