CMHC Reports that Toronto Housing Starts Remain Strong in October

CHMC (Canada Mortgage and Housing) reported that Toronto Housing Starts Remain Strong in October

TORONTO’S HOUSING STARTS REMAIN STRONG IN OCTOBER

TORONTO, NOVEMBER 10,

2008 –

The seasonally adjusted annual rate (SAAR) of total housing starts fell by 11 per cent to 46,200 in October from the previous month, according to preliminary housing starts data released today by the Canada Mortgage and Housing Corporation (CMHC) for the Toronto Census Metropolitan Area (CMA).

After edging lower, the annual rate of home starts still remained well above the average for the past three years.

Total housing construction on an unadjusted basis remains strong so far this year with starts up by 31per cent compared to the same time period a year earlier. Condominium apartment starts continue to drive new home construction.

"Condominium apartment starts continued to be much higher than last year’s levels through October," says Jason Mercer, CMHC’s Senior Market Analyst for the GTA.

"This strongest level of condominium apartment construction on record has resulted in a substantial jump in total new home construction this year.’’

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Real estate prices

Hi
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

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

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 seem to be holding steady for the past couple of weeks.
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

Toronto Prices down 4% and sales volumes down 35% for October 2008

October Toronto Real Estate Board statistics in a nutshell,

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.

Read more about:

• 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 ?
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TREB Reports More Than 5,000 Sales In October

This is what the Toronto Real Estate Board reported for the October sales

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.

Read more about:

• 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