2005 Moves Ahead
The market continues to hum along and 2005 will likely be a banner year.
TORONTO - Monday, November 7, 2005--With two months to go and 73,514 properties having changed hands through the TorontoMLS system, TREB President John Meehan announced today that 2005 is currently running just ahead of the 10 month total (73,202) recorded last year. “The residential resale market could exceed the record 83,501 transactions seen in 2004,” said the President. “This year may well put in Toronto’s best annual performance ever.’
There were 7,174 properties sold in the month of October alone, Mr. Meehan went on to note. This is up eight per cent over October 2004, and the second best total for the month ever recorded. Meanwhile prices rose to $342,450, a one per cent increase over September and up six per cent over the $324,215 recorded in October of 2004.
See the Graph and Read More
Tuesday, November 08, 2005
Monday, November 07, 2005
FAQ: Should I lock in my mortgage rate? Review of Short term or long term Mortgages
Question: I am not sure what I should do with the length of the term of my mortgage? Should I go long or short?
Answer: This is a question asked more than any other. Everyone wants a definitive answer to it. Of course, anyone that claims they can predict future interest rates is somewhat foolish or is making it up. I am neither ... so (as you already know my answer.) it depends. It depends on YOUR outlook for the future:
If you see a generally low inflation environment in the months ahead then you should stay as short of a term as you can, get the 6 month variable rate at 1.5%. You save a great deal on interest and the odds are with you (For if you locked in for five years at say 5.25%, the prime rate would have to rise to over 7.00% from the current 3.75% before you were to pay the same interest as a five year rate. This could be a huge savings to you over the long term.
If you are not sure whether inflation or deflation are coming in the months ahead, then you may wish to play it safe by getting a variable open maximum flexibility ... or analyze the TD product where you pay ¼% over prime but the maximum interest is capped at 6.25% or so for 5 years. Other banks offer some such product as well, such as the BOM which offers a 3.65% variable rate capped at 7.15% for 5 years or the long term/short term mortgage from Scotia bank.
If you believe inflation will be back then you may want to go long go for ten years ... Today’s best 10 year rate at about 6.75% is lower than the US - 15 year rate at 7.09% - and you can get out after 5 years (by law) with only a 3 months penalty. If rates go much higher (in an inflationary environment) or back to previous highs, the long term at this low rate will make your home attractive to future buyers.
You may see a graph showing the spread between short and long term mortgage interest rates and you will see that the wider the gap the greater the savings in going with a short term mortgage!
Read the entire article
Answer: This is a question asked more than any other. Everyone wants a definitive answer to it. Of course, anyone that claims they can predict future interest rates is somewhat foolish or is making it up. I am neither ... so (as you already know my answer.) it depends. It depends on YOUR outlook for the future:
If you see a generally low inflation environment in the months ahead then you should stay as short of a term as you can, get the 6 month variable rate at 1.5%. You save a great deal on interest and the odds are with you (For if you locked in for five years at say 5.25%, the prime rate would have to rise to over 7.00% from the current 3.75% before you were to pay the same interest as a five year rate. This could be a huge savings to you over the long term.
If you are not sure whether inflation or deflation are coming in the months ahead, then you may wish to play it safe by getting a variable open maximum flexibility ... or analyze the TD product where you pay ¼% over prime but the maximum interest is capped at 6.25% or so for 5 years. Other banks offer some such product as well, such as the BOM which offers a 3.65% variable rate capped at 7.15% for 5 years or the long term/short term mortgage from Scotia bank.
If you believe inflation will be back then you may want to go long go for ten years ... Today’s best 10 year rate at about 6.75% is lower than the US - 15 year rate at 7.09% - and you can get out after 5 years (by law) with only a 3 months penalty. If rates go much higher (in an inflationary environment) or back to previous highs, the long term at this low rate will make your home attractive to future buyers.
You may see a graph showing the spread between short and long term mortgage interest rates and you will see that the wider the gap the greater the savings in going with a short term mortgage!
Read the entire article
Friday, November 04, 2005
Flipping Houses - What are the pitfalls and areas to consider?
Is buying and flipping a house in Mississauga is the right thing for you to do?
Good Investment?
What is Flipping?
Good Planning is Essential
Acquiring property
Renovation Plan
Selling Your PropertyConclusion
Good Investment?
The hottest investment going these days is flipping property. Investors are making huge profits buying luxury properties before they are finished and then selling at a profit before actually taking possession. Most make more moderate profits buying distressed property and improving it.
Experts disagree on how safe an investment flipping is. Economist Tucker Hart Adams claims that this practice has created a housing price bubble by artificially inflating property values. She says that the bubble must pop. Other exerts claim that even if the market values have been grossly inflated and may be at risk, other markets will be relatively unaffected because the market inflation here has been small.
Read the entire article
Good Investment?
What is Flipping?
Good Planning is Essential
Acquiring property
Renovation Plan
Selling Your PropertyConclusion
Good Investment?
The hottest investment going these days is flipping property. Investors are making huge profits buying luxury properties before they are finished and then selling at a profit before actually taking possession. Most make more moderate profits buying distressed property and improving it.
Experts disagree on how safe an investment flipping is. Economist Tucker Hart Adams claims that this practice has created a housing price bubble by artificially inflating property values. She says that the bubble must pop. Other exerts claim that even if the market values have been grossly inflated and may be at risk, other markets will be relatively unaffected because the market inflation here has been small.
Read the entire article
Thursday, November 03, 2005
Executive End Unit Townhome in Central Mississauga
Awesome Townhome near Hurontario and Dundas
Large & Spacious Extra Wide End unit townhome
Excellent Family Home In a Great Area
This home features many upgrades and is only a year old
Approximately 1300 Sqft
Very private and wide Lot - fenced on two sides and backs inside of complex
This home is exceptionally bright and is an upgraded model from the builder and is called the "Special Wide End Unit" and is about 4 feet wider than most of the other end units in the complex, which makes it much more spacious and very bright and roomy throughout
Bright Open Concept, Great Location, Shows very well
Read More and See pictures
Wednesday, November 02, 2005
Anxiously awaiting Toronto Real Estate Board Stats for October
Many of us are anxiously waiting for TREB (Toronto Real Estate Board) to release the stats for October. Most are predicting the 'typical' rise in prices, while some are predicting a slight drop due to softening of the market. Regardless, it should be interesting to see the results.
If you want to see the sales figures for September, browse to TREB and click working with a Realtor and then highlight Market Watch
If the past 10 years are any indication, see how average prices fluctuate during the year here, there are probably about 4 to 6 weeks of good fall market left for this year. It will be interesting to see if the market continues as it has all year or has a softening as some are now predicting.
All the best,
Mark
If you want to see the sales figures for September, browse to TREB and click working with a Realtor and then highlight Market Watch
If the past 10 years are any indication, see how average prices fluctuate during the year here, there are probably about 4 to 6 weeks of good fall market left for this year. It will be interesting to see if the market continues as it has all year or has a softening as some are now predicting.
All the best,
Mark
Historical Average Prices and Mortgage Interest Rates
I have a Excel file that has all the Historical Average selling prices for the Toronto Real Estate Board and for average 1 and 5 year mortgage interest rates
You can take the data and produce very nice graphs showing how prices or Canadian interest rates have changed and compare the two.
Please email me if you want me to send you the data file.
Thank you,
Mark
You can take the data and produce very nice graphs showing how prices or Canadian interest rates have changed and compare the two.
Please email me if you want me to send you the data file.
Thank you,
Mark
Thursday, October 27, 2005
Has the market peaked and should I sell? Mississauga Real Estate FAQ's
Should I sell my investment property and cash out today - Has the Mississauga or Toronto market peaked?
I get asked this question often. There is no simple answer.
I know how you feel that it's tempting to cash out, prices are so high. This is a difficult question to answer precisely as really, nobody can predict what will happen in the future. Many are now thinking that the market may have peaked in the GTA, but only time will tell.
There have been a few articles written in the press lately about the over-abundance of condos currently on the market and more coming on stream in the next 2 to 3 years. This could potentially create a supply problem and prices could soften in the condo market. Regardless, if you have equity in your investment property, then I would understand that you may wish to take out the equity and move it to other investments that may give you a higher return over the next 5 years or so.
Over the past 3 to 5 years or so the rental market in Mississauga has been very soft and I have noticed the quality of tenants has dropped significantly. This is due to our extremely low interest rates and many people that would have otherwise rented, purchased instead. The vacancy rate in the GTA is very high and this has impacted investment properties.
I help clients with many of their rentals per year and I am finding it much more difficult to find good quality tenants over the past few years.
Even if we have a correction in our market, I don't think it will be too significant. We are not in a boom similar to the investor fuelled boom of the mid to late 80's so I think (and hope) that we will not ever see the bottom fall out of the market the way we did in '89 to '95.
So there you have it. I am sorry I cannot predict the market more accurately for you. When push comes to shove, you will have to make the final decision.
See how average prices have escalated since 1995, we may be near the end of a 10 year increase. http://www.mississauga4sale.com/TREBprice.htm#graph
All the best, and if you want more information, please email me.
Mark
Back to FAQ's in real estate http://www.mississauga4sale.com/FAQ-Real-Estate-Mississauga.htm
I get asked this question often. There is no simple answer.
I know how you feel that it's tempting to cash out, prices are so high. This is a difficult question to answer precisely as really, nobody can predict what will happen in the future. Many are now thinking that the market may have peaked in the GTA, but only time will tell.
There have been a few articles written in the press lately about the over-abundance of condos currently on the market and more coming on stream in the next 2 to 3 years. This could potentially create a supply problem and prices could soften in the condo market. Regardless, if you have equity in your investment property, then I would understand that you may wish to take out the equity and move it to other investments that may give you a higher return over the next 5 years or so.
Over the past 3 to 5 years or so the rental market in Mississauga has been very soft and I have noticed the quality of tenants has dropped significantly. This is due to our extremely low interest rates and many people that would have otherwise rented, purchased instead. The vacancy rate in the GTA is very high and this has impacted investment properties.
I help clients with many of their rentals per year and I am finding it much more difficult to find good quality tenants over the past few years.
Even if we have a correction in our market, I don't think it will be too significant. We are not in a boom similar to the investor fuelled boom of the mid to late 80's so I think (and hope) that we will not ever see the bottom fall out of the market the way we did in '89 to '95.
So there you have it. I am sorry I cannot predict the market more accurately for you. When push comes to shove, you will have to make the final decision.
See how average prices have escalated since 1995, we may be near the end of a 10 year increase. http://www.mississauga4sale.com/TREBprice.htm#graph
All the best, and if you want more information, please email me.
Mark
Back to FAQ's in real estate http://www.mississauga4sale.com/FAQ-Real-Estate-Mississauga.htm
Mississauga Gasoline prices below 90 cents per litre
I guess it was only a matter of time, but the gasoline prices in Mississauga are yo-yo 'ing again, but at least they seem to be heading down as opposed to up!
On October the 8th, prices were in the mid 90's and we all thought we had hit the jackpot.
The photos below show prices under 90 cents per litre, actually saw a price at 88.8 cents per litre.
Two nights ago I was coming home from two late appointments and saw the price on October 25th at the Petro Canada at the corner of Cawthra and Rathburn at 80.4 cents per litre. Yes, you are reading that correct, 80.4 Today, I drove past the same station and the price was back up to 89.9 cents per litre.
All the best,
Mark
On October the 8th, prices were in the mid 90's and we all thought we had hit the jackpot.
The photos below show prices under 90 cents per litre, actually saw a price at 88.8 cents per litre.
Two nights ago I was coming home from two late appointments and saw the price on October 25th at the Petro Canada at the corner of Cawthra and Rathburn at 80.4 cents per litre. Yes, you are reading that correct, 80.4 Today, I drove past the same station and the price was back up to 89.9 cents per litre.
All the best,
Mark
Wednesday, October 19, 2005
Current State of the Real Estate Market in Mississauga
September seemed to be a continuation of the great summer market and it appears we should be in for a strong fall market. It is difficult to predict where the prices will go, (can they go any higher?) but, if patterns over the past years are any indication, prices will escalate again this fall.
Seems the prediction above that I wrote last week came true. Now that the September sales numbers are in the record books, you can read more about the increase in sales last month in this article.
I hope that everything is going well for you and that you receive this in good health.
I wish you all the best! Mark
7,000 Plus! September Home Sales Break Record
Wednesday, October 5, 2005 -- The Toronto Real Estate market continued its record breaking ways in September, with 7,326 sales transacted through the TorontoMLS system, Board President John Meehan reported today. "This figure is up 11 per cent over last year (6,588 sales), and up eight per cent over sales in September 2003 (6,751), which was our previous best September."
The President went on to note that, with 66,480 sales year-to-date, 2005 has closed to within a single percentage point of the 2004 nine-month total (66,668). "If the fourth quarter market performs as well as the previous three months," said Mr. Meehan, "there is a strong possibility that 2005 could end up as the best year ever."
The President went on to note that prices strengthened considerably in September, with the average rising five per cent to $338,267 over the August figure of $323,255. In addition, the year-to-date average, at $335,267, is up seven per cent over 2004.
Saturday, October 15, 2005
Mississauga gasoline prices over the past few years with pictures
Mark Argentino Mississauga Real Estate Blog
Mississauga gasoline prices over the past few years
This page is for fun and interest. You may click any of the photos below for a full size and more detailed picture.
I know that you likely have gone through the same emotional swings as you have watched the gasoline prices "yo-yo" for the past years and escalate to incredible peaks in the recent past. I have started to keep an eye on prices as they reach these unprecedented levels and will report them below.
As well, you will find a glimpse of prices around the world on this page and graphs showing how much more we are paying for gasoline compared to the average US price.
Enjoy.
I took this picture the first time that I had ever seen gasoline over 70 cents per litre at the corner of Erin Mills Parkway and Credit Valley Road, the date was October 27, 2003 the price that day was 71.1 cents per litre. I still recall how astonished I was that the price had gone over 69.9
As an aside, I fill up at Esso about 95% or more of the time. The reason for this is multifold.
Less than 2 years later and for the first time I saw gas at the corner of Erin Mills Parkway and Credit Valley Road over $1 per litre was on August 13, 2005 with the price posted at 101.9 cents per litre. Poor Esso across the street had to blank out their large sign and their price was posted on the small A frame board at the side of the road. I was amazed to see this high price and absolutely outraged at the same time.
_________________________________________________________
Hurricane Katrina made landfall in late August of 2005 and caused gas prices to escalate and in late September then Hurricane Rita made landfall on September 24th of 2005 and prices began to rise up to the stratosphere! This sign is from a gas station in Quebec.
Days during Rita making landfall it was reported on ontariogasprices.com that the price fro a litre of gasoline was$1.76 per litre at Port Colborne Shell Gas station. People in my office and my wife's office were reporting that gasoline on the morning of September 23rd was $2 per litre in Barrie and by the afternoon of Friday the 23rd of September prices were heard to be as high as $2.50 per litre at some stations.
This is from August in the USA. Too bad the people from the US don't realize what a great deal they are getting, at USD$2.33 per US gallon, and if 1 gallon [US, liquid] = 3.7854118 liters and the dollar conversion is 1.00 US dollars = 1.17 Canadian dollars that works out to about
The price of USD$2.33 per US gallon is about CAD$2.73 per US gallon and divided by 3.7854118 liters per US gallon equals CAD$0.72 per litre, that's worth repeating, 72 cents per litre, what is so 'unreasonable' about that price
This is from a sign in Germany, price is Euro per litre, at a conversion of 1.00 Euros = 1.40 Canadian dollars this would be about CAD$135 per litre for regular, about CAD$1.79 for super
Now this is about where I would like to see our gasoline prices!
On Friday October 6th, 2005 the prices around Mississauga were all below $1 per litre again, in the high 90's. We all felt as if we were getting the deal of the decade
Toronto Gas Prices
This chart shows the average Toronto gas prices compared to the average gas prices in the USA for the 3 months surrounding the hype and hysteria of the late summer and early fall of 2005
Gas prices over the past 3 years
This picture shows the price on October 8th, 2005. It shows the price at the corner of Credit Valley Road and Erin Mills Parkway Esso at 95.5 cents per litre.
I have not logged the actual prices on Friday's or weekends compared to during the week, but my feeling is that gas stations often will raise the price on a Friday and keep prices high until at least Sunday morning. This is even more true for a long weekend, the price of gasoline usually is raised and stays high for any long weekend that I remember over the past few years. I cannot recall a long weekend where prices dropped, until the weekend of Thanksgiving in 2005.
It's incredible and just goes to prove that just when you think you have the yo-yoing of gasoline prices figured out, "they" go ahead and throw us another curve ball.
To be continued with more current information in the future
Your comments, questions and suggestions are always welcome!
So there you have my 5¢ worth! What are your preferences and reasons for using one gasoline station over another, price, convenience or other? I would love to hear your opinions on this subject too,.
Mississauga gasoline prices over the past few years
This page is for fun and interest. You may click any of the photos below for a full size and more detailed picture.
I know that you likely have gone through the same emotional swings as you have watched the gasoline prices "yo-yo" for the past years and escalate to incredible peaks in the recent past. I have started to keep an eye on prices as they reach these unprecedented levels and will report them below.
As well, you will find a glimpse of prices around the world on this page and graphs showing how much more we are paying for gasoline compared to the average US price.
Enjoy.
I took this picture the first time that I had ever seen gasoline over 70 cents per litre at the corner of Erin Mills Parkway and Credit Valley Road, the date was October 27, 2003 the price that day was 71.1 cents per litre. I still recall how astonished I was that the price had gone over 69.9
As an aside, I fill up at Esso about 95% or more of the time. The reason for this is multifold.
- Back when Esso originally introduced the speedpass (I think it was 1999) I thought that the convenience of pointing an object connected to my key ring was much better than going into the store to pay with a credit card.
- As well, the speedpass was connected to my Visa and I would get Esso points and Visa points at the same time. Since I am on the road very often, as you know I am a real estate agent, I put about $2500 to $3000 of gasoline in my vehicle per year and I thought that the points would add up over the years.
- Another reason for using Esso is that there is an Esso located at the corner of Credit Valley Road and Erin Mills Parkway, about .4 km from my house. Again, very convenient.
- Another reason for me going to Esso (in general) is that they have Royal Bank banking machines and I bank with the Royal, so cash withdrawals were convenient. For anyone who lives north of Dundas or south of Britannia in the Erin Mills Area knows, there are zero branches of the Royal Bank (BTW-as an other aside, RBC is installing a branch near the corner of Eglinton and Plantation Woods - yeah!) in this entire area, so Esso is the most convenient location to obtain cash. This is called cross marketing by Esso and it brings in many customers who would otherwise go to competitor gas stations were it not for the Royal Bank banking machines.
- Probably, one of the most important reasons that I go out of my way to use Esso is the fact that they have Tim Horton's coffee. Many would agree with this fact and this is likely the number one reason why a large percentage of customers fill up with gasoline at Esso, Tim Horton's and convenience. Again, brilliant cross marketing on the part of Esso.
Less than 2 years later and for the first time I saw gas at the corner of Erin Mills Parkway and Credit Valley Road over $1 per litre was on August 13, 2005 with the price posted at 101.9 cents per litre. Poor Esso across the street had to blank out their large sign and their price was posted on the small A frame board at the side of the road. I was amazed to see this high price and absolutely outraged at the same time.
_________________________________________________________
Hurricane Katrina made landfall in late August of 2005 and caused gas prices to escalate and in late September then Hurricane Rita made landfall on September 24th of 2005 and prices began to rise up to the stratosphere! This sign is from a gas station in Quebec.
Days during Rita making landfall it was reported on ontariogasprices.com that the price fro a litre of gasoline was$1.76 per litre at Port Colborne Shell Gas station. People in my office and my wife's office were reporting that gasoline on the morning of September 23rd was $2 per litre in Barrie and by the afternoon of Friday the 23rd of September prices were heard to be as high as $2.50 per litre at some stations.
This is from August in the USA. Too bad the people from the US don't realize what a great deal they are getting, at USD$2.33 per US gallon, and if 1 gallon [US, liquid] = 3.7854118 liters and the dollar conversion is 1.00 US dollars = 1.17 Canadian dollars that works out to about
The price of USD$2.33 per US gallon is about CAD$2.73 per US gallon and divided by 3.7854118 liters per US gallon equals CAD$0.72 per litre, that's worth repeating, 72 cents per litre, what is so 'unreasonable' about that price
This is from a sign in Germany, price is Euro per litre, at a conversion of 1.00 Euros = 1.40 Canadian dollars this would be about CAD$135 per litre for regular, about CAD$1.79 for super
Now this is about where I would like to see our gasoline prices!
On Friday October 6th, 2005 the prices around Mississauga were all below $1 per litre again, in the high 90's. We all felt as if we were getting the deal of the decade
Toronto Gas Prices
This chart shows the average Toronto gas prices compared to the average gas prices in the USA for the 3 months surrounding the hype and hysteria of the late summer and early fall of 2005
Gas prices over the past 3 years
This picture shows the price on October 8th, 2005. It shows the price at the corner of Credit Valley Road and Erin Mills Parkway Esso at 95.5 cents per litre.
I have not logged the actual prices on Friday's or weekends compared to during the week, but my feeling is that gas stations often will raise the price on a Friday and keep prices high until at least Sunday morning. This is even more true for a long weekend, the price of gasoline usually is raised and stays high for any long weekend that I remember over the past few years. I cannot recall a long weekend where prices dropped, until the weekend of Thanksgiving in 2005.
It's incredible and just goes to prove that just when you think you have the yo-yoing of gasoline prices figured out, "they" go ahead and throw us another curve ball.
To be continued with more current information in the future
Your comments, questions and suggestions are always welcome!
So there you have my 5¢ worth! What are your preferences and reasons for using one gasoline station over another, price, convenience or other? I would love to hear your opinions on this subject too,.
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