Mississauga Real Estate Market in April Continues to Improve

The Mississauga Real Estate Market Continues to Improve in the month of April. Sales volumes are up and prices are steady.

We are now experiencing a good real estate market where properly priced properties are taking about 2 to 3 weeks to sell. This is a more 'normal' time period and gives buyers and sellers time to digest market conditions without acting with too much pressure.

See my MLS listings on Google Maps here

Looks like March was another good month for sales, read more

Now that the March sales numbers are in the record books, you can read more about sales volumes and prices from last month in this article

Prices seem to have stabilized for month over month. This is somewhat unusual compared to the last 10 years of spring markets. It is difficult to predict where the prices will go over the next month or two, but if patterns over the past years are any indication, prices will likely improve over the next few months.

I hope this finds you and yours happy and healthy!

Mark

For more information please contact A. Mark Argentino

A. Mark Argentino Associate Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
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

Prices Steady - Volume up Compared to last year

TORONTO - Wednesday, April 5, 2006--TREB Members reported 8,707 sales of existing homes in March, a 10 per cent increase over the 2005 total of 7,904, Toronto Real Estate Board President John Meehan announced today. "The March performance is the second best ever recorded for the month," Mr. Meehan said. "Furthermore, year-to-date we have seen 19,831 sales, which is the best first quarter result since statistics have been kept."

Prices steadied last month, with the average registering at $353,134, almost the same as in February and up seven per cent from the $330,545 recorded in March of 2005. Inventory climbed four per cent over last March to 22,765, and average time-on-market fell to 30 days.

Breaking down the total Numbers into TREB Areas for this month

3,281 sales were reported in TREB’s 28 West districts and averaged $334,274
1,558 sales were reported in the 14 Central districts and averaged $458,623
1,710 sales were reported in the 23 North districts and averaged $381,774
2,158; sales were reported in TREB’s 21 East districts and averaged $282,954

Public Open houses on my listings this Saturday and Sunday April 8th and 9th

Please visit either of these links see them all here or quick list here to see my listings that are on the list of Public Open Houses this weekend
Thank you,
Mark

Toronto CMA Housing Starts Sag in February

Toronto CMA Housing Starts, SAAR
Total housing starts in the Toronto Census Metropolitan Area (CMA) declined in February.  Construction began on 1,539 homes, representing a 33 per cent drop from the same month in 2005.  On a seasonally adjusted basis, the annual rate of housing starts dipped to 28,300 versus the January rate of 46,300.

The major factor contributing to February a sharp decline was the complete absence of new condominium apartment construction.  Condominium apartment starts are volatile, because they reflect the laying of foundations for entire multiple unit buildings at one time.


OWNERSHIP DEMAND REMAINS STRONG
February starts of the other lower density housing types decreased by a much smaller amount.  New footings for single-detacsemi-detachedached and town (row) houses were down by only 4.6 per cent.  New home construction will remain well above average in 2006.  The demand for ownership housing remains strong due to steady growth in employment and real wages coupled with very low borrowing costs.  Households remain confident in their ability to purchase and pay for a home over the long term.

Conclusion

However, due to the expected increase in the share of condominium apartment construction, starts will not be uniformly distributed throughout the year.  Rising average prices have shifted home buyer demand away from single and semi-detached houses toward less-expensive town homes and condominium apartments.  Year-to-date, the average price of a completed and absorbed single-detached home in the Toronto CMA rose to almost $457,000.  This price point is arguably too high for most first time buyers and many move-up buyers as well. From CMHC Market Analysis Centre - Toronto 2006

Toronto Real Estate Board (TREB) - Function and Purpose

The Toronto Real Estate Board (TREB) was founded in 1920 by a small group of real estate practitioners. TREB is now Canada's largest real estate board. There are more than 23,000 Members of TREB.

As stated in their policy manual, the Toronto Real Estate Board (TREB) is committed to advancing the interests of real estate sales people and brokers who comprise of TREB's membership. Members of TREB are also members of the Ontario Real Estate Association (OREA) as well as the Canadian Real Estate Association (CREA).

The Toronto Real Estate Board is the main real estate board in the Greater Toronto Area (GTA) that is the home board for real estate agents in the GTA and surrounding areas. These agents belong to and use TREB on a daily basis to promote the mls listings of their clients. Members also utilize the mls data in the area. TREB is one of the largest organized real estate boards in all of North America.

TREB is also responsible for membership, ethics and arbitration decisions and mandates much of the direction of the membership with regards to the public and the government.

REALTORS® who are members of TREB are licensed professionals who must abide by a strict code of ethics and meet continuing education requirements to maintain their status.

The Multiple Listing Service (MLS®) should not be confused with any information advertised on any site or the multiple listing service site operated by CREA. The Multiple Listing Service is a tool accessed only by REALTOR® members with extensive depth and functionality.

Toronto Real Estate Board Members utilize various fundraising events to raise money to make significant contributions to local and national charities such as the Hospital for Sick Children and Habitat for Humanity Toronto. These fundraising activities have also resulted in the construction of a Habitat home for a family in need.

The Toronto Real Estate Board issues news releases twice a month. This includes a full statistical update on local real estate market conditions at the beginning of each month. The publication is called Market Watch and is available from any member realtor

ConclusionThe Toronto Real Estate Board is a very large real estate board that runs the MLS system for listings in the area. TREB helps many agents in the greater Toronto area supply timely and relevant information purchasers and to promote vendor client listings across the GTA and the Southern Ontario region.

What is CREA and how do they help Buyers, Sellers and Agents in Canada?

The Canadian Real Estate Association (CREA) is a trade association in Canada and it represents more than 82,000 real estate people across Canada .

CREA's primary mission is to represent its members at the federal level of government. CREA also defends the publics right to own and enjoy property in Canada .

CREA owns the MLS® trademark logo and name and has a proprietary interest in the REALTOR® trademark that is used in the United States . The REALTOR® trademark can only be used in Canada by members of The Canadian Real Estate Association. These members much accept and respect a strict Code of Ethics set out by CREA.

CREA also administers and owns the mls.ca site for the public. The real estate database systems operated by other member Boards (such as TREB) provide an ongoing inventory of available properties to mls.ca The website mls.ca ensures maximum exposure of properties listed for sale across Canada . This is important because most resale homes in Canada are listed on their local real estate boards and are available through MLS®. This also gives maximum exposure to any seller who decides to sell their property through a local real estate agent.

Buyers can access the mls listing for any property in Canada that is listed on a board that is a member of CREA.

Sellers benefit from CREA by the fact that their mls listing is available to all buyers across Canada and the world who wish to use the online version of the mls system created by CREA.

Conclusion

As you can see, CREA is a major force in organized real estate in Canada. CREA assists not only real estate agents, but also helps many sellers market their property through mls.ca and gives any potential buyer easy access to all mls listings in Canada.

You & Realtor Agency relationships explained in Ontario

The Real Estate Council of Ontario (RECO) has always required that a seller and buyer clearly understand the nature and different types of relationships that are available to them with their broker. Under the newly rewritten Real Estate and Business Broker's Act (REBBA) that is coming out in March of 2006 this disclosure requirement is now law.

The Ontario Real Estate Association has produced an updated brochure that is called Working with a Realtor and it clarifies representation and customer service agreements and arrangements with your real estate agent. The brochure also includes a section that explains your real estate agents obligations and requirements under the Code of Ethics. The Code of Ethics was also rewritten and updated with many new sections added or modified.

I can email you a copy of this new brochure so you may improve your understanding of agency relationships and take some of the confusion out of the entire process.

Please send me more information about Agency Relationships

Breaking Ontario Real Estate News - if your listing just expired - agents cannot contact you

Breaking News - if your listing just expired - agents cannot contact you

The question at hand is can a real estate agent contact a seller who had a listing on the mls that has now expired? The answer to this question falls under the privacy act.

A recent ruling by the Privacy Commissioner was that the agent used the expired mls listing to obtain the vendors name and address and used this information to market services to the seller and that this was improper.. Although the seller had authorized the original listing broker and the real estate board to use and disclose the information contained within the mls listing the seller did not consent to other brokers using any of that personal information being used by any other brokers to market their services.

The Privacy Commissioner explained that regardless of where the real estate agent found the sellers contact information, there is a link between the sellers previous intent to sell (as shown by the previous mls listing) and the sellers contact information. The ruling was that the real estate agent violated the personal information and property PIPEDA (find out what this means) from the information on the mls listing without the consent of the seller.

It is possible that all future mls listings will contain a clause that would give sellers the option of consenting to being marketing by other real estate agents after their listing expires.

Conclusion

The bottom line is that real estate agents cannot use the information contained in an expired mls listing agreement to contact those sellers without their prior consent. Even with a consent clause in all listing agreements, it will remain the decision of the seller to allow or deny other agents marketing their services to them after their listing expires.

Latest News from the Canadian Real Estate Association (CREA) - March 7, 2006

February strong month for MLS®
Records broken in some major markets
Some of Canada's largest real estate Boards reported record MLS® sales in February, despite a new survey indicating a drop in the number of Canadians intending to buy a home in 2006.

The Toronto Real Estate Board also reported a nine per cent increase in MLS® sales in February compared to the same month a year ago. TREB President John Meehan said the 6,756 transactions represent the second best February ever, within two per cent of the record set in February of 2002.

"The performance of the Toronto area market early in the year has been very encouraging," Meehan said. “We are not yet at the peak of the spring season, but consumers are showing confidence in what is consistently proving to be a solid, healthy real estate market." TREB statistics showed that during February, two of the most expensive areas within the city of Toronto also ranked amongst the most active in terms of sales, compared to February 2005.

"The market is very stable," Meehan added. "Great conditions exist right now and smart consumers understand that it's a good time to buy that first home or make the move to a different one." The average transaction price reported by TREB also cracked the $350,000 mark for the first time in February.

Montreal's residential resale market broke another record in February by generating more than $1 billion in sales for the month. "All indicators point to another strong year for real estate in 2006," said Michel Beausejour, CEO of the Greater Montreal Real Estate Board.

A total of 4,978 sales were registered on the board's Multiple Listings Service® in February, up four per cent from 4,803 sales in the same month of 2005. The total sales dollar value in February was $1.02 billion, up 10 per cent compared with the $932 million recorded in February, 2005 on the Montreal area MLS® system.

The increase in average prices is one reason for the jump in total value. The average price of single-family homes in Montreal rose four per cent to $312,000.

The Winnipeg Real Estate Board says MLS® sales in February were the best for the month in the 103-year history of the Board. $115 million worth of properties were sold last month through the board's Multiple Listing Service®, an increase of 28 per cent from the $90 million sold in February of last year, which had been the best February on record. Last month also tied with 1988 for the best February on record for unit sales, with 794 properties changing hands.

"It just goes on and on," WREB president Walter Boni said in an interview yesterday. "And personally, I don't see it letting up any time soon, when you see the number of people out looking.” Boni said he hosted an open-house recently that drew more than 40 prospective buyers, and he knows of another that attracted more than 50. "That tells you what the demand is like," he said.

In Calgary, residential MLS® sales totaled 3,060 units, a 37.7 per cent increase over February 2005's sales of 2,223, and a 27.1 per cent increase over January 2006's sales of 2,408. The average combined residential sale price for February 2006 was $304,560 a 26 per cent increase over February 2005, and a 5.3 per cent increase over January 2006's average price of $289,130.

“The February real estate market continued to demonstrate the power of an open and competitive market; supplies remain limited and demand high resulting in increased prices and fast sales in many communities” explained CREB® President, Kevin Clark. “Despite the opportunity for many, we are not reading about the losers; if one chooses not to sell competitively or one buys without assistance the market can cost you a lot of money.”

A national survey of buying intentions published by the Royal Bank said home buying intentions are at their lowest level since 2000. "While the intention to buy is still evident, a natural slowdown following several record buying seasons may partially explain the mood among Quebecers when it comes to ... home buying," said Danielle Coutlee of RBC personal finance services. (CREA 07/03/2006)

Real Estate Investment Property Purchase - 7 Important Considerations

Real Estate Investment Property Purchase - 7 Important Considerations

If you are considering an buying an investment property, there are 7 important items to consider.
1. Financing, typically lenders will only lend up to 65 percent of the value of the property when it's for investment purposes. This limit is in place because lenders consider an investment property a higher risk

If you have equity in your current principal residence or in other property, then you may wish to borrow from those sources to maximize your mortgage and financing Generally speaking your investment property. The reason for this objective is because you are allowed to use mortgage interest paid on your investment property to reduce the amount of income and hence tax paid on your investment property.

2. Another important consideration for your investment property is choosing the best location. If you are considering a townhouse or a high-rise condo for your investment, then you want to ensure that it is located close to major shopping, transportation and schools and amenities that will appeal to prospective tenants. Often tenants will only have one vehicle and require these types of amenities to be located close to the property. You will usually get higher rent when your location is desirable.

3. Generally speaking, a high-rise condominium will allow you the most flexibility and least amount of effort and maintenance during the tenancy compared to any other type of property. Once a high-rise condo is rented, it is nearly a hands free investment. This does not come without any cost, as the maintenance fees associated with a high-rise condo will be much higher compared to a townhouse or other type of property. Your second choice for maintenance free investment property may be a townhouse. The reason is that all of the exterior maintenance, such as snow shoveling and lawn and garden maintenance will be taken care of by the condo corporation and not the tenant. The only items that you and/or the tenant will have to take care of are the interior items and these are usually minor in nature.

A freehold townhouse, semi or detached home will require more maintenance and effort on your part and the tenant throughout the year. This may be more desirable or not, depends upon your circumstances. Many investors choose freehold properties for their investment properties as they have the time or prefer to do some of the maintenance themselves or at least have control over the entire property compared to condo type properties.

4. As a continuation of the items considered in number 3, these different properties will appreciate at different rates, all things being equal. For example, if a high-rise condo has an appreciation of 10% in a year, then a townhouse may appreciate 12 to 14% and a freehold property may increase 15% or more. This larger appreciation would be offset by the fact that more maintenance may be required by you the owner.

5. It is important to consider all the expenses when you purchase an investment property. The obvious expenses are the principal and interest costs associated with the mortgage or financing on the property, the annual taxes and any monthly maintenance fees if the property is a condominium.

You may wish to consider regular maintenance items to protect the value of your investment property and the systems that are associated with your property. Other expenses you may incur are regular maintenance items such as furnace cleaning and maintenance and inspection. This is a very important item if your investment property is a freehold. Other items such as the condition of the roof, foundation, interior and exterior walls and windows, appliances, lighting and window coverings, electric garage door openers and any other systems or items that are mechanical in nature should be checked on a regular basis to not only protect the value of your investment but also to prevent the failure of these items as opposed to regular maintenance.

6. Once you have purchased your investment property your other major consideration is finding a good quality tenant. In my nearly 20 years of experience I have found that there are two major considerations in your tenant. The number one consideration is that you find a tenant who has the ability to pay the rent and if possible can show a good history of paying the rent. The second most important item is to make sure that your tenant will take care of the property for you in your absence.

Other items you will have to consider are that you must investigate the credit worthiness of the tenant, their personal and credit history, their employment status and confirmation of employment. You may contact their previous landlord and personal references that they supply on the application. These items can be critical and will give you insight into your prospective tenant. In my experience, the degree to which a prospective tenant completes all fields on a rental application and provides all the information you request and is straightforward and forthright with all answers to your questions and inquires will give a good indication of the quality of the tenant that you are looking at.

7. You have to decide to find the tenant yourself or use a real estate agent. When you attempt to find the agent yourself, you can personally meet the tenant ahead of time and see the type of people that will occupy your property. You will have to do all the credit and personal investigations of the tenant. I have found that when you use a real estate agent to find a tenant for your property, the quality of the tenants are usually better than through private means. The reason for this is that tenants who are relocating with their company or those tenants that have better employment and personal history know that the properties on the mls are better compared to the private properties and will utilize the mls to find their property. As well, the mls is a much more efficient method of finding a rental property and many tenants use the mls to find their next rental.

Of course, a real estate agent can find you a good quality tenant and perform all of the credit and personal investigations on your behalf. In the Toronto and GTA, the typical fee to have your property rented through the mls is one months rent commission.

Conclusion

As you can see, there are many important items to consider with an investment property that you are considering to purchase. Your personal situation, financial ability and degree of involvement in your investment property will ultimately determine the type of property that you will purchase.

I can assist you with all of the complexities when you purchase and rent out your investment property. Please don't hesitate to email me