Monday, April 30, 2007

Supersizing home trends - most likely over within next decade


Buyers' focus shifting from size to style

Supersized house trend likely over within next decade

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

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

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

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

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

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

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

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

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

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

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

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

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

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

L.A. Times-Washington Post News Service

Read more about real estate trends

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, April 25, 2007

Current Canadian Interest Rate Marketplace HIGHLIGHTS

HIGHLIGHTS of the current marketplace

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

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


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


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


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


Inflation on the radar in Canada


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


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

Read more about the current state of the real estate market

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Banks applaud legislation to lower minimum payment needed for mortgage insurance


Banks applaud legislation to lower minimum payment needed for mortgage insurance


Saturday, April 21, 2007

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

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

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

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

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

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

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

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

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

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Tuesday, April 24, 2007

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

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

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


Hello Arun B.,

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

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

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

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

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

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

Mark

Read more about prices

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Monday, April 23, 2007

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


Did you hear the latest on mortgages in Canada?

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

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

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

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

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

Any comments? email me

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

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

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Sunday, April 22, 2007

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

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

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


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

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

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

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

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

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

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

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

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

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

See average price graph for past 20 years

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Friday, April 20, 2007

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


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

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

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

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

Proposed one-time 3.8% hike not the big threat

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

Property assessments still frozen at 2005 levels

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

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

Assessment values to play catch-up in 2009

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

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

Ontario budget proposes measures to improve property tax stability and predictability

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

Affordability conditions remain stable

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

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

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Thursday, April 19, 2007

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


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

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

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

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

You may see our mortgage interest rate trends in Canada


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, April 18, 2007

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


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

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

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

10 cheap ways to upgrade your home

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


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

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

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

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

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

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

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

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

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

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


More Ideas and Suggestions when you sell your home




For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Tuesday, April 17, 2007

Making the switch from "heat" to "cool"


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

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

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

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

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

. Close off vents in any unused rooms.

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

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

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

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

Credit: www.newscanada.com

More energy saving tips at my site

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com