Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino

Wednesday, December 31, 2008

CMHC report on New Home Market

This is the latest report by CMHC regarding the new homes market, there is a dichotomy!

This is likely my final post for 2008. I wish you a Happy New Year and all the best to you and your family in 2009.

Thank you,

Mark

New Home Market

Housing Starts Moderate

The seasonally-adjusted annual rate (SAAR) of total housing starts dipped below trend in November for the Toronto Census Metropolitan Area (CMA).

In response to higher home prices, comparatively less expensive high-rise home types have been increasingly popular.

Total home starts on an unadjusted basis were almost 25 per cent above last year’s level for the January through November period. Condominium apartment starts remained the driver – up by over 130 per cent.

Starts for all low-rise housing types were down compared to the same period last year, while apartment starts were up.

The dichotomy between high-rise and low-rise home construction remained in place year to- date through November.

Tuesday, December 30, 2008

New Real Estate and World Economy

Some personal thoughts as we end a miserable econonic year for the stock markets and the economy in general.

We are into a new type of world economy

The US still leads but is no longer the force it once was, so not all follow US lead anymore

Greed will always prevail, so gold should be good for short run, there will be another disaster in the future that will cause a spike and that may be the time to unload

This is why the stock markets fluctuate 10% in a day and nobody blinks an eye anymore

Real estate does not follow 7 year cycles any longer, we just finished a 13 year cycle here in Toronto, interest rates are at historic lows, inflation is low, oil is low, wages are still too high

The future is indeed uncertain, the US will NOT go bankrupt and we will be out of this mess by mid 2010, the problem is that we have not hit bottom yet and there is $uch more pain to come

We've had these cycles before, we must hit despair before we can have hope

Obama will brighten things a little and give us hope

As for precious metals I think that zirconia looks just as nice as diamonds!

Enjoy the winter and all the best to you and your family in the New Year!
Mark

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

test post since having publishing problems

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

RBC reporting that Canada on course for recession

The Royal Bank of Canada, RBC, is reporting that Canada is heading for a recession in 2009. This seems to be a common prediction and will likely continue for at least the next one to two quarters.

This is what RBC reported

Canada on course for recession

- Canada, while somewhat insulated by a solid financial system, now faces a number of negative factors. With commodity prices slumping, the positive growth momentum in Canada's domestic economy will be challenged by erosion in the terms of trade that will dampen income growth next year and the recent widening in spreads and tightening in lending standards argue for slower household spending and a cut in business investment.

- We expect price pressures to continue to ease; the headline inflation rate is forecast to average 1.2% in 2009, one-half the estimated 2008 rate. The Bank of Canada's core inflation rate, which did not climb alongside the headline measure in 2008, is expected to hold steady at 1.6%.

- As a result, we now expect Canada's economy to contract in both the fourth quarter of 2008 and first quarter of 2009. On average, Canada's economy is still expected to eke out mild growth next year of 0.3%, half the pace of this year's estimated 0.6% increase and much slower than the 2.7% pace of 2007.

Monday, December 29, 2008

Gasoline Prices following the economy down!

Gasoline prices are reaching levels we have not seen in many years. The current price at the pump as of December 28 2008 is about 66.4 cents/litre

in and around the GTA. This is exceptionally low compared to prices of late. We paid $1.49 per litre for gasoline at the pump located at the Port Credit Harbour Marina in mid August!

See the graph below to see how prices have fallen

Mark

Sunday, December 28, 2008

Mortgage Interest Rates are still falling

You can see the rates below are slightly lower than the rates that I posted here on my blog a week ago, this is good news for those that are thinking of buying or refinancing their mortgage in the next while.

I hope this finds you happy and healthy!
Mark

TERM	POSTED	Best Obtainable RATES*
6 Month	5.90%	5.89%
1 Year	5.60%	4.00%
2 Year	6.25%	4.94%
3 Year	6.25%	4.84%
4 Year	6.09%	4.79%
5 Year	6.75%	4.72%
7 Year	7.20%	5.80%
10 Year	7.55%	5.95%
Variable Rate		4.10%
Prime Rate		3.50%

* Rates may vary and are subject to change without notice.
Rates Last Updated: Friday, December 26, 2008

Enjoy,

Mark

Thursday, December 25, 2008

CONSUMER PROTECTION Act and Real Estate in Ontario

CONSUMER PROTECTION ACT

The Consumer Protection Act, like the previous legislation. the Business Practices Act. is designed to prohibit unfair practices in sales to consumers.

Although the Act does not affect representations made during the course of selling "real property,'' it does apply to real estate brokerages when representations are made during the course of selling goods and services'' to consumers.

A seller or buyer who complains, under this Act. that there has been an unfair practice in the selling of the registrant's
services, may cancel the contract sue for damages, and/or one a complaint with the Consumer Protection

Branch of the Ministry of Government Services. The type of contract that may be cancelled would therefore be a ''service'' or representations agreement.

Real property, as such, is not included in the definition of goods, however, registrants are affected when providing services: e.g.. listing, representing buyers, appraising, and arranging financing. For example. if a listing or buyer representation agreement is obtained through the use of an unfair practice as deamed by the Act the seller or buyer is entitled to rescind the contract.

An unconscionable consumer representation made in respect of a particular transaction is determined by various considerations. An unconscionable consumer representation occurs if the person making the representation or the employer knows or ought to know: ''

. that the proposed transaction involves or does not involve rights, remedies. or obligations if the indication is false or misleading;

that uses exaggeration. innuendo, or ambiguity as to a material fact or fails to state a material fact if such use or failure deceives or tends to deceive; or

* that misrepresents the purpose or intent of any solicitation of or any communication with a consumer.

Unfair Practices

Unfair practices are grouped under False and an unconscionable consumer representations. A false, mts fading, or deceptive consumer representation includes, but is not limited to, a representation: . that the goods or services have sponsorship, approval. performance characteristics, and benefits or quantities that they do not have; . that the person who is to supply the goods or services has sponsorship. approval, status, affiliation, or connection that he/she does not have;

* that a specific price advantage exists, if it does not;

. that misrepresents the authority of a salesperson,
representative, employee, or agent to negotiate the
final terms of the proposed transaction;

. that the consumer is not reasonably able to
protect his/her interests because of his/her
physical infirmity, ignorance, illiteracy , inability to
understand the language of an agreement, or
similar factors;

. that the price grossly exceeds that at which similar
goods or services are readily available to like
customers;

. that the consumer is unable to receive a
substantial benefit for the subject matter of the
consumer representation;

. that there is no reasonable probability of payment
of the obligation in full by the consumer;

. that the proposed transaction is excessively onesided
in favour of someone other than the
consumer;

. that the terms and conditions of the proposed
transaction are so adverse to the consumer as to
be inequitable;

* that he/she is making a misleading statement of
opinion that the consumer is likely to rely upon to
his/her detriment; or

that he/she is subjecting the consumer to undue
pressure to enter into the transaction.
Session .3 * Legislation & Current Issues

Complaint Procedures

The consumer may complain of unfair practices, for
example. in the case of a seller who claims to have
signed a listing because of undue pressure. Several
alternatives are available in such cases

The seller may rescind or cancel the contract which would terminate the listing upon giving a written notice to the agent, personally or by registered mail, within six months after the agreement was signed

The seller is also entitled to any remedy available
at law including damages that may be ordered by
a court for fraudulent or negligent
misrepresentation or for breach of the duties of
an agent.

If rescission is not possible (property is sold and a
selling agent may be entitled to payment under
the agreement), the seller can recover the amount
of commission paid that exceeds the fair value of
the service. or damages. or both. The court can
also award exemplary or punitive damages.

The seller has another avenue that involves filing a
complaint with the Consumer Protection Branch of
the Ministry of Government Services. An
investigation, search of business premises, removal of
records for copying, and other administrative
procedures may follow. Such a complaint may include
the issuance of an order by the Director of the

Consumer Protection Branch requiring compliance. A
breach of the Act or failure to comply with the
Director's order may result in prosecution. To access
the Consumer Protection Branch

I hope this finds you happy and healthy,
Mark

Tuesday, December 23, 2008

Current Canadian National Mortgage Interest Rates

See the current rates below

NATIONAL MORTGAGE RATES
Term	Posted Rates*	Best Rates*
6 Month	5.90%	5.90%
1 Year	5.60%	4.35%
2 Year	6.25%	4.99%
3 Year	6.25%	4.99%
4 Year	6.09%	4.85%
5 Year	6.75%	4.99%
7 Year	7.20%	5.80%
10 Year	7.55%	5.95%
Variable Rate		4.10%
Prime Rate		3.50%
* last updated: Dec 22, 2008

Enjoy,
Mark

Friday, December 19, 2008

Bullion prices and the real estate market

I had a question from a reader:

USD is weakening, the entire country is Bankrupt, lots of the major Banks, Auto Manufacturers, Insurers, Savings & Loans, Thrifts, and sub trade suppliers are all on the verge.
Therefore, why is it that Gold and Silver as well a most precious metals and Diamonds, which are usually the safe havens in these recessionary times, are also slipping in price.
Usually they will, as history has shown, increase by up to 20 times the price.
Now they are all going down the slope together.............what gives??.
N.

Dear N.

We are into a new type of world economy

US still leads but is no longer the force it once was, so not all follow US lead anymore

Greed will always prevail, so gold should be good for short run, there will be another disaster in the future that will cause a spike and that may be the time to unload

This is why the stock markets fluctuate 10% in a day and nobody blinks an eye anymore

Real estate does not follow 7 year cycles, interest rates are at historic lows, inflation is low, oil is low, wages are still too high

The future is indeed uncertain, the US will no t go bankrupt and we will be out of this mess by mid 2010, the problem is that we have not hit bottom yet and there is much more pain to come

We've had these cycles before, we must hit despair before we can have hope , see this graph:
http://www.mississauga4sale.com/Market-Emotions-Cycle.htm

Obama will brighten things a little and give us hope

As for precious metals I think that zirconia looks just as nice!

Enjoy the snow!

Mark

Mortgage Interest Rate update

Below are the current posted and best rates in the GTA

TERM	POSTED	Obtainable RATES*
6 Month	5.90%	5.90%
1 Year	5.60%	4.35%
2 Year	6.25%	4.94%
3 Year	6.25%	4.84%
4 Year	6.09%	4.85%
5 Year	6.75%	4.72%
7 Year	7.20%	5.80%
10 Year	7.55%	5.95%
Variable Rate		4.10%
Prime Rate		3.50%