Thursday, October 09, 2008
Mortgage Rate Reaction to Bank of Canada Interest Rate cuts
As you are by now aware, the Bank of Canada lowered their prime rate yesterday by 50 basis points (0.50%) to 4.25%.
Typically banks and other lending institutions will match the BOCs rate but in this case, we are seeing decreases of only 25 basis points to 4.5%. The reason why Canadian financial institutions are not reacting as aggressively is due to their own cost of borrowing being significantly higher due to higher risk involved in lending money to each other.
These rate discounts were unscheduled and unexpected as this is the first time since the terrorist attacks of Sept. 11, 2001 that the BOC has made an unscheduled rate change.
Despite the decrease in the prime rate, at least three more lenders increased their 5 year fixed rates yesterday. Will this trend of increasing rates continue despite a lower prime rate? It is hard to predict at this time due to the volatility of the financial institutions over the past few weeks especially.
My guess is that these increasing fixed rates are transitory as it is rumoured that the Bank of Canada will be dropping the prime rate by an additional 50 basis points following their next rate announcement on October 21st.
Today's lowest rates are 5.50% on a five year fixed and FOR TODAY ONLY,
I have mortgage contact that can still offer prime (4.50%) on the variable. As of tomorrow, prime +1% will be the lowest available.
I hope this email finds you and your family healthy and happy!
Mark
RBC reports on the global interest rate cuts of .5% - unprecedented!
The Federal Reserve, Bank of England, Bank of Canada, ECB, Riksbank and Swiss National Bank all cut policy rates by 50 basis points in an unprecedented co-ordinated move on October 8.
Heightened financial market stress that weighed on equity markets and saw LIBOR rates, a proxy for funding costs, spurt higher prompted policymakers to act in an effort to resurrect investor confidence and shore up the financial system.
The numerous actions to-date by governments and central banks across the globe have elicited little joy but, given the magnitude and persistence of these interventions, we expect they will begin to ease strains in financial markets.
- Interest Rates
- Power of Sale Properties
- Price Trends
- or Search the MLS and more at my website
Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com
- Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
- On-Line Real Estate Newsletter sign up
- See seasonal housing patterns
Tuesday, October 07, 2008
Landlord and Tenants and the current rental marketplace
In light of the current economic crisis happening in the US and now in Canada, the rental market in Mississauga remains very tight. Most rental properties $1500 and under rent within a few days of being listed.
You are always safe when you have a rental property that is located near major amenities, such as The Erin Mills Town Centre or Square One or Heartland and one that shows well and is priced according to market rents. These properties tend to be the first ones that rent, everything else follows suit.
My experience also shows that similar to a property that is for sale, when a rental property shows well, it rents right away and at top value rent.
You cannot go wrong using an agent to list your property for rent. Reasons are many, but mainly because corporate relocation tenants and quality tenants all search rentals through the MLS and with an agent. Thus, if you are only trying to save a months rent by trying it yourself, you reduce your potential marketplace considerably. Quality tenants don't have time to scour the rental sections of the newspapers, they want everything online and my site and mls.ca provide this exposure for you.
Besides, how many agents do you know in Mississauga produce a virtual tour slideshow to market your rental property? Not many. Here is a recent example:
http://www.mississauga4sale.com/listings/5525-Palmerston-Crescent-Streetsville-GO.htm
If you need help with your rental property, please send me an email.
Thank you,
Mark
Saturday, October 04, 2008
TREB reports The Greater Toronto Area resale housing market continued at a slower pace through September
With 6,424 homes changing hands last month, activity in the GTA declined six per cent compared to the 6,866 sales that took place in September 2007 and declined three per cent compared to the 6,622 transactions that were recorded two years ago.
In the City of Toronto sales were less robust. The 2,546 transactions recorded last month declined 11 per cent from the 2,854 sales in September 2007 and declined five per cent from the 2,680 sales recorded in September 2006. Sales increased six per cent between September 2006 and September 2007.
"We remain concerned about the Land Transfer Tax in the City of Toronto," said Ms. O'Neill.
In the 905 Region, the 3,878 sales recorded last month were within three per cent of September 2007's 4,012 transactions, and within two per cent of September 2006's 3,942 sales. Sales in this region increased two per cent between September 2006 and September 2007.
From a year-to-date perspective, the GTA resale housing market has declined 14 per cent from the 73,827 transactions recorded a year ago. To date, there have been 63,595 sales through the TorontoMLS system this year. In the City of Toronto year-to-date sales have declined 16 per cent from last year's figure of 30,059 to 25,257 transactions this year. In the 905 Region year-todate sales have declined 12 per cent. So far this year there have been 38,338 sales in the 905
Region compared to 43,768 last year. Prices throughout the GTA however, have remained fairly stable. At $368,549, the average price of a GTA home in September has declined three per cent from $380,132 recorded a year ago.
In the City of Toronto, the current average price of $393,647 declined six per cent from the September 2007 average of $420,182. Compared to the September 2006 average of $371,682 though, prices in Toronto for September 2008 have increased six per cent.
In the 905 Region, the average price of $352,071, increased marginally from the $351,641 recorded in September 2007, and was up five per cent from 2006 September average of $333,818.
"Although the market is not as robust as it was a year ago, homeowners are continuing to see strong returns on their investment," said Ms. O'Neill. "On average, Sellers are achieving 97 per cent of their asking price.
With the average number of days on market increasing to 36 days from to 31 days a year ago, it is taking slightly longer for homeowners to achieve a sale.
"Even with respect to sales activity, each month we continue to see a handful of neighbourhoods reporting increases compared to a year ago."
In Scarborough East (E08) transactions increased 22 per cent compared to September 2007 based on strong sales of all housing types.
Streetsville (W19) saw an 11 per cent sales increase due primarily to strong detached home sales.
In Newmarket (N07) transactions increased 11 per cent compared to a year ago, driven mainly by strong condominium townhouse sales.
"Given that these are trying times for the world economy, in context, the Greater Toronto Area resale housing market continues to fare quite well," said Ms. O'Neill. "From a long-term perspective, buying a home remains a sound financial decision."
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board.
- Interest Rates
- Power of Sale Properties
- Price Trends
- or Search the MLS and more at my website
Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com
- Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
- On-Line Real Estate Newsletter sign up
- See seasonal housing patterns
October Report - Prices down about 3% and sales volumes down about 6% compaing year over year figures
TREB is stating that the GTA Resale Housing Price and Sales were Measured in September
October 3, 2008 -- TREB Members reported 6,424 sales of single family dwellings in September, down about six per cent from the 6,866 sales recorded during September of last year, Toronto Real Estate Board President Maureen O'Neill announced today.
However, the 6,424 sales reported for September 2008 is down just three per cent from the 6,622 figure recorded in September 2006. To keep in perspective, September 2007's 6,866 sales was the second best figure ever recorded for that month.
The overall transaction figure for September masks significant regional differences. Within the City of Toronto sales registered 2,546, down 11 per cent from the 2,854 figure recorded in September of 2007 but down five per cent from the 2,680 recorded during the same month in 2006. In the 905 suburbs, the 3,878 sales that went through TorontoMLS were down three per cent from last year's 4,012 sales, and down two per cent over the 2006 total of 3,942 sales.
Overall, GTA prices declined three per cent from their year-ago levels to an average of $368,549 from the September 2007 figure of $380,132. As with sales, the GTA's regions fared quite differently on average price during the month. The average within The City of Toronto, at $393,647, fell six per cent from September 2007's $420,182 but rose six per cent from the $371,682 recorded in the same month of 2006. Meanwhile prices in the 905 districts, at $352,071, rose marginally from the $351,641 recorded in 2007, and was up five per cent from 2006 September figure of $333,818.
Breaking down the total, 2,539 sales were reported in TREB's 28 West districts and averaged $352,249; 1,067 sales were reported in the 14 Central districts and averaged $464,397; 1,220 sales were reported in the 23 North districts and averaged $407,424; and 1,598 sales were reported in TREB's 21 East districts and averaged $300,772.
GTA Resale Housing Remains Steady Throughout Summer Months
- Interest Rates
- Power of Sale Properties
- Price Trends
- or Search the MLS and more at my website
Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com
- Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
- On-Line Real Estate Newsletter sign up
- See seasonal housing patterns
Friday, October 03, 2008
"When life hands you a lemon, say, 'Oh yeah, I like lemons. What else ya got?'"
through the day...
Enjoy!
Mark
_______
"When life hands you a lemon, say, 'Oh yeah, I like lemons. What else ya
got?'"
The secret of business is to know something that nobody else knows.
Money doesn't always bring happiness. People with ten million dollars are
no happier than people with nine million dollars.
"The real art of conversation is not only to say the right thing at the
right place but to leave unsaid the wrong thing at the tempting moment."
"Nothing great was ever achieved without enthusiasm."
"It took me seventeen years to get 3,000 hits in baseball. I did it in one
afternoon on the golf course."
"If a cluttered desk is the sign of a cluttered mind, what is the
significance of a clean desk?"
"A signature always reveals a man's character - and sometimes even his
name."
"Free advice is worth the price."
"A good listener is usually thinking about something else."
"We are continually faced with a series of great opportunities ybrilliantly
disguised as insoluble problems."
"Everywhere is walking distance if you have the time."
"One of the lessons of history is that nothing is often a good thing to do
and always a clever thing to say."
"Money frees you from doing things you dislike. Since I dislike doing nearly
everything, money is handy."
"Tact is the knack of making a point without making an enemy."
"A ship in harbour is safe, but that is not what ships are built for."
"There are many things that we would throw away if we were not afraid that
others might pick them up."
"A bank is a place that will lend you money if you can prove that you don't
need it."
"In any moment of decision the best thing you can do is the right thing, the
next best thing is the wrong thing, and the worst thing you can do is
nothing."
"Never take the advice of someone who has not had your kind of trouble"
"In spite of the cost of living, it's still popular."
If some great catastrophe is not announced every morning, we feel a certain
void. Nothing in the paper today, we sigh.
History is the sum total of things that could have been avoided.
As long as your going to be thinking anyway, think big.
The secret of business is to know something that nobody else knows.
Any society that would give up a little liberty to gain a little security
will deserve neither and lose both.
The five essential entrepreneurial skills for success: Concentration,
Discrimination, Organization, Innovation and Communication.
Current mortage interest rates in the GTA
TERM | POSTED | Obtainable RATES |
6 Month | 6.20% | 6.20% |
1 Year | 6.35% | 4.70% |
2 Year | 6.70% | 5.09% |
3 Year | 7.05% | 5.19% |
4 Year | 7.04% | 5.25% |
5 Year | 7.20% | 5.39% |
7 Year | 7.65% | 5.55% |
10 Year | 8.00% | 5.55% |
Variable Rate | 4.50% | |
Prime Rate | 4.75% |
Housing Market Indicators in Mississauga and the GTA
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, October 02, 2008
Mississauga Real Estate Market and our collective Psyche - a snapshot
Monday, September 29, 2008
Guaranteed Financial Freedom and Success in Life
Mark