Sunday, November 09, 2008
Real estate prices
I just wanted to comment that although average prices in the 905 region have dropped about 4% according to TREB stats, we are not seeing too much softening of prices in Mississauga as yet
Time will tell if the Mississauga real estate prices fall, and certainly December is usually a soft month on prices, so we could be experiencing a drop in Mississauga real estate prices soon
Thanks
Mark
Sent from my BlackBerry device on the Rogers Wireless Network
CMHC comments that Canada’s economy gearing down and barely skirting recession
Canada's economy gearing down and barely skirting recession
A U.S. recession, slipping commodity prices and moderately tight credit conditions set up for Canada's economy to slow, although we think that it will avoid a recession for two main reasons: the favourable terms of trade effect, while weakening, will still provide residual support to domestic demand and Canada's financial stress has been more limited than in the United States, meaning the toll on household and business will be less.
Intersting comments by CMHC on whether or not we will avoid a recenssion in Canada
Regards,
Mark
Saturday, November 08, 2008
Bank of Canada cuts back forecasts
These are the comments by CMHC about The Bank of Canada cuts back forecasts
The Bank of Canada made significant downward revisions to the outlook for Canadian growth and inflation in its semi-annual
Monetary Policy Report. The Bank indicated that in the face of weaker U.S. and global growth, lower commodity prices and tighter credit conditions, Canada's growth forecast was being cut. The reduction was most marked for 2009 where the increase in GDP was slashed to 0.6% from 2.3%, although the Bank did not see Canada's economy falling into recession.The downward revisions to growth and falling commodity prices saw the Bank significantly pare back their outlook for inflation next year.
Like the Fed, the Bank signalled that the greater risk to the Canadian economy is weaker growth rather than higher inflation and, like the Fed, left the door open to further cuts.
We expect the Bank to cut the overnight rate to 2% by year-end but to acknowledge that, if growth fails to meet the central bank's updated forecasts, more cuts are likely.
Regards,
Mark
Friday, November 07, 2008
CMHC comments that rates aren’t the only game in town!
Rates aren't the only game in town!
These are the comments by CMHC about interest rate cuts in the future
A key question is whether or not the Fed will continue along the course of lowering interest rates to limit the depth and duration of the recession. Last week's move to 1% and the accompanying statement did not preclude more rate cuts. However, the sustained decline in the three-month LIBOR rate in the past two weeks suggests that the seized-up funding markets are starting to thaw in response to efforts to provide liquidity directly.
While this is encouraging, until there is evidence that financial institutions are willing and able to make loans to businesses and households, downside risks to the economy will remain as will the odds that the Fed will cut again.
Aside from additional interest rate cuts, we expect the Fed will continue to increase the scope and size of its current liquidity operations and to encourage rates to remain low across the yield curve, spreads to narrow and, ultimately, firms to lend. A move in the Fed funds rate below 1% could have some unintended and disruptive consequences for money markets and that cost will have to be balanced against the benefit of additional rate stimulus.
In the meantime, the Fed should concentrate on other policies, which could include a public commitment to a low rate policy stance for a protracted period as a means to keep term rates low or more systematic, outright purchases of long-term bonds or other securities to supplement the Treasury's efforts in recapitalizing financial institutions.
They are also likely to continue to concentrate on addressing specific market imbalances through programs like the commercial paper lending facility, which got under way last week. Signs that credit stresses are easing will give policymakers more leeway to keep the funds rate at its current accommodative level and use more proactive policies.
Thanks
Mark
Canadian Mortgage Interest Rates Hold Steady
Rates Last Updated: Thursday, November 06, 2008
TERM | POSTED | "BEST" RATES* |
6 Month | 6.20% | 6.20% |
1 Year | 6.35% | 4.80% |
2 Year | 6.70% | 5.35% |
3 Year | 7.05% | 5.49% |
4 Year | 7.04% | 5.69% |
5 Year | 7.20% | 5.59% |
7 Year | 7.65% | 6.20% |
10 Year | 8.00% | 6.40% |
Variable Rate | 4.75% | |
Prime Rate | 4.00% |
* Rates may vary and are subject to change without notice.
For more information please contact A. Mark Argentino
A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com
Thursday, November 06, 2008
Toronto Prices down 4% and sales volumes down 35% for October 2008
the latest sales figures for October, prices down 4% in October compared to September, unheard of that the price falls in October, first time in 13 years
sales volumes down 35% during same period
even though 905 price drops are larger than average, it seems the local market is ok, homes are selling and prices don't seem to be dropping too much in Mississauga, we should be through this downturn by early spring!
you can read the stats in my online newsletter, if you are allowed to go to the internet, I'm sure Dave is happy to hear these stats http://www.mississauga4sale.com/newsletter/latest_newsletter.htm
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
Bank of Canada Rate Cut likely in future
The Bank of Canada cut the policy rate by 75 basis points in October but stated that "some further monetary policy stimulus will likely be required" to keep inflation on target, meaning another 25 basis-point cut in the policy rate to 2% is likely before year-end.
- 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
Wednesday, November 05, 2008
TREB Reports More Than 5,000 Sales In October
More Than 5,000 Sales In October
November 5, 2008 -- TREB Members reported 5,155 sales in October, down 35 per cent from the 7,915 sales reported in October of 2007, and also down 25 per cent from the 6,876 sales reported during October 2006.
Within the City of Toronto, 2,136 sales were recorded. This was down 38 per cent from the 3,455 sales recorded in October of last year. In the 905 suburbs, however, the 3,019 sales recorded were down 32 per cent from October 2007's figure of 4,460.
GTA-wide, prices declined 10 per cent to $352,974 from last October's average of $394,646. They were down one per cent over the average recorded in October 2006 of $356,423. As with sales, price declines differed according to region.The City of Toronto average was $376,896, down 13 per cent from the $434,022 recorded during the same month in 2007, and down about three per cent from the $386,807 recorded in October 2006. Meanwhile, the average for the City's 905 suburbs was $336,049.This is down eight per cent from the $364,142 recorded last October, and up one per cent from the $333,166 recorded in October 2006.
Breaking down the total, 2,064 sales were reported in TREB's 28 West districts and averaged $335,329; 892 sales were reported in the 14 Central districts and averaged $450,437; 946 sales were reported in the 23 North districts and averaged $382,032; and 1,253 sales were reported in TREB's 21 East districts and averaged $290,719.
- 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
Toronto Real Estate Board reports GTA Resale Housing Market Continues to Reflect Economic Times
GTA Resale Housing Market Continues to Reflect Economic Times
TORONTO, November 5, 2008 -- The Greater Toronto Area resale housing market reported 5,155 sales in October, Toronto Real Estate Board President Maureen O’Neill announced today.
This represents a 35 per cent decline from the 7,915 sales reported in October 2007 and a 25 per cent decrease from the 6,876 transactions that took place during the same period two years ago.
In the City of Toronto, there were 2,136 sales, with sales activity down 38 per cent from the 3,455 transactions recorded last October.
In the 905 Region 3,019 sales were recorded, with sales activity down 32 per cent from a year ago when 4,460 homes changed hands.
With 68,570 transactions to date this year, sales are within 16 per cent of the 81,563 transactions noted a year ago. The 2007 market referred to was a record breaking year with each month breaking records for the entire year. Putting into perspective 2008 figures are indicative of a return to a more balanced market.
In the City of Toronto 27,324 sales year-to-date are within 18 per cent of the 33,441 transactions recorded last year at this time.
In the 905 Region the 41,246 sales to date are within 14 per cent of the 48,122 homes that changed hands up to this point a year ago.
In the City of Toronto, the current average price of a home is $376,896, down 13 per cent from last October’s average of $434,022 and within three per cent of the October 2006 average of $386,807.
In the 905 Region homes are selling for an average price of $336,049, a decline of eight per cent from October 2007’s average of $364,142. Prices in this area however, remain one per cent higher than the October 2006 average of $332,822.
“Earlier this year the International Monetary Fund undertook a study of housing markets in 17 countries and found that Canada was one of only two nations in which house prices are supported by the economy,” said Ms. O’Neill. “There’s no doubt that real estate will continue to be a solid long-term investment in our country.”
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
Power of Sales and Bank Foreclosure - what's the difference?
Hello Liezla,
Downpayment for POS is same as for regular properties, 5% is now the minimum with CMHC
POS means the bank is selling under the privilege contained in the mortgage, owner still has deed to property, foreclosure means the bank has taken over the property and owns the property and is selling the property.
Please let me know if you have any more questions.
Thank you,
Mark