Shortage of supply? and Little competition? You're kidding!

People are asking me when I make comments such as there is a "Shortage of supply? and Little competition?" and this is the truth in many areas of Mississauga.

That's exactly what we are finding. I know it's not intuitively correct, but many of the properties currently on the market have been there for some time, are tired and not updated.

There is a serious shortage of good homes on the market, especially in some higher demand areas of Churchill Meadows. I've sold two homes in Churchill Meadows, both sold in less than 10 days because they showed very well and were priced right.

Credit Pointe is also an area that is in good demand and you live on one of the nicer streets, so if your home shows well and is priced right, it will sell.

It's not catastrophe out in our Mississauga marketplace, just a slower paced market, there are still hundreds of homes selling each month.

I feel we are about near the bottom, we many stay here for 2 to 6 months, but I don't see prices falling too much more. I may be wrong, but there is much pent up demand out there, many people with cash waiting to hear the news that the market has turned and by then it will be too late.

At any rate, just wanted to clarify and post here on my blog for all to see my comments!

Thank you,

Mark

TREB GTA annual volume of sales 1991 to 2008

The graph below shows the average number of resale homes from the period 1991 to 2008

Note the huge surge in sales in 2005 and 2007

It's not that our marketplace has crashed, just slowed. It will pick up again, just a matter of when

I hope this finds you happy and healthy,

Mark

Monthly single family average sale price in the GTA for 2007 and 2008

The graph below shows the monthly single family average sale price in the GTA for 2007 and 2008

The data shows that our market has slowed since about September of 2008 compared to 2007 and previous years.

This has been felt throughout our GTA market and sellers have been adjusting their prices back to about the same as summer of 2007 levels in order to sell

I hope this finds you happy and healthy,

Mark

What happens if a buyer does not close on a real estate sale?

This is a common question that I receive from sellers that I deal with, such as "what happens in the event when the purchaser does not have the funds upon closing and will not have the funds, regardless of any extensions"

Please understand that I am not a lawyer and cannot give legal advice to this question, this is a question for a lawyer to answer in full. I can shed some light on my experiences and teachings with such matters.

If the purchaser does not close on a sale on the agreed upon date, then it's incumbent upon the seller to put the property back on the market and try and resell at the best price and terms. In law, it's called, you have to "mitigate your damages". This means that you, the seller, has to try and reduce any potential loss you may incur when you resell. If there is a shortfall from the second sale compared to the first and you may incur extra costs, the seller would go after the first buyer for costs and additional out of pocket expenses.

Then there is the issue of the deposit that my real estate company is holding in trust for the buyer. It remains in our real estate trust account until one of the following occurs.

My teaching and experience regarding closings that fail is that there are 3 'typical' methods that a deposit comes out of trust.

1. If there is a successful sale
2. if there is a mutual release and
3. if there is a court order

There are others, but these are the main methods. Thus, if you sale does not close, you attempt to resell, any loss you incur you will attempt to go after the money in trust and attempt to negotiate with the first buyer to cover these costs.

On the mutual release you and the original buyer would agree to an amount of the deposit that comes to you and an amount that goes back to the buyer. If you cannot agree on the terms of the mutual release, you would have to go to court and sue the buyer for what is called 'specific performance' since the buyer did not consummate the sale.

Again, I am not a lawyer and you should ask your lawyer to further clarify what happens if a sale does not close.

Thankfully, this situation of a buyer not closing does not happen too frequently in real estate so we don't have to deal with it too often.

I've been in the real estate business for just over 21 years and this has never happened to any of my sales over the course of my career in real estate.

Thank you,

Mark

Price reductions In Mississauga to sell current listings

The reality of our current GTA and Mississauga marketplace is that you have to price aggressively in order to get sold. When I say aggressively, I mean that you have to be priced within 2% or so of market value, otherwise you may not sell in this marketplace.

I've had 3 listings that have been on the market for just over a month and although we are receiving showings, we've now had to reduce the prices to be price leaders in order to sell.

One listing is located at 3120 Turbine Crescent, a freehold townhouse in Churchill Meadows and it's now reduced to 299,999

See details and slide show at this link for Turbine:

http://www.mississauga4sale.com/listings/3120-Turbine-Crescent.htm

I also have two semi detached homes that are side by side (attached) where one is currently owned by the parents and the other by the children. This is a perfect setup for people that would like to have separate homes, but attached!

The one semi is located at 1185 Prestonwood is now asking $354,900 and the next door attached semi is now reduced at 1187 Prestonwood to $334,900

See details and slide show at this link for both properties at Prestonwood at this link:

http://www.mississauga4sale.com/listings/1185-Prestonwood-Crescent-Heartland.htm

and

http://www.mississauga4sale.com/listings/1187-Prestonwood-Heartland-District.htm

Please let me know if you would like to see inside any of the above great homes!

Thanks

Mark

Mortgage Interest Rates drop slightly in the GTA

The table below shows the posted and attainable rates in and around the GTA

If you need a contact to obtain these types of rates, please send me an email.
Thank you,
Mark

TERM	POSTED	Attainable RATES*
6 Month	5.20%	5.20%
1 Year	5.00%	3.89%
2 Year	5.75%	4.44%
3 Year	5.75%	3.75%
4 Year	5.69%	4.29%
5 Year	5.79%	4.37%
7 Year	7.00%	5.90%
10 Year	7.35%	6.05%
Variable Rate		3.75%
Prime Rate		3.00%

* Rates may vary and are subject to change without notice.
Rates Last Updated: Thursday, February 05, 2009

Where is the Mississauga real estate market heading?

Many buyers are sitting on the sidelines waiting for 'the market to bottom out" My observations in the past when we have gone through difficult real estate markets (as we are right now) is that sitting back for a while may be the best course of action to take for some.

With that said, we just purchased another investment property. I feel that at least the townhouse market in west Mississauga has already bottomed out and did so back in December of 2008.

The problem with our local real estate market is that we will not know until about 3 to 6 months AFTER our market has turned that it bottomed out 3 to 6 months ago. This is almost always the case!

Plus, when the market turns, it goes up very fast.

Currently, there is plenty of pent up demand in the real estate marketplace and there are many people with cash sitting waiting to purchase real estate.

Certainly interest rates are favourable, they are at all time record low percentage rates, so this is no excuse not to make your move up or purchase an investment property.

I hope this finds you healthy and happy,

Mark

TREB report on Rental Market in GTA

This is the quarterly report by the Toronto Real Estate board with regards to rental property transactions over the past quarter

Highlights are:

• there were 3433 rental transactions in the last quarter, a 30% increase over the same period in 2007
• condominium apartments make up the bulk of rental dwellings in downtown Toronto and downtown Mississauga

West Area

• Transactions rose 30% to 837 units, due in part to listings near Mississauga City Center.

• 699 condominium apartments were rented, up 33 percent. Average rents trended upward in two out of four categories (one and three bedroom units). Two bedroom rents fell marginally to an average of $1,611 per month.

• The West districts remained TREB’s most active area for townhouse rentals, with 138 leased over the past four months. Two-bedroom units rented for an average of $1,502 per month, down two percent. Three-bedroom units rented for an average of $1,555 per month, down one percent from last year.

The full release is below
Thank you,
Mark



Between September 1, 2008 and December 31, 2008, Toronto Real Estate Board (TREB) Members reported 3,433 rented condominium apartments and townhouses in the Greater Toronto Area.
This represented a 30 per cent increase over the 2,635 transactions recorded during the same time frame in 2007. A good part of this increase likely came from rental listings in newly completed condominium apartment buildings containing investor-owned units.

"The increasing strength of the rental market combined with low interest rates and reasonable home prices mean that now could be an excellent time to purchase an investment property," said Maureen O'Neill, President, Toronto Real Estate Board.

"Given the demand for rental units, tenants can cover some of the owner's operating costs for an investment property, while property owners look forward to a healthy return in the market value in the long term."

Condominium apartment rents on an annual basis rose for one, two, and three bedroom types during the September to December period. Two bedroom units, for example, rose two per cent to $1,895 per month.

"Investor-owned condominium apartments have become an increasingly important component of the GTA rental market," according to Jason Mercer, Senior Manager Market Analysis.

"Very few purpose-built rental apartments have been completed in the GTA over the past few years. Many renters searching for apartments with modern finishings and amenities have been attracted to rental condominium apartments listed by TREB Members on the TorontoMLS system."



---------------------------------------------------------------------------
Total Av. Rent Av. Rent Av. Rent Av. Rent
Condo Apt. Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Units
Rented
---------------------------------------------------------------------------
Sept-Dec 2,404 $1,232 $1,451 $1,858 $2,011
'07
---------------------------------------------------------------------------
Sept-Dec 3,152 $1,194 $1,485 $1,895 $2,056
'08
---------------------------------------------------------------------------
% Change +31% -3% +2% +2% +2%
---------------------------------------------------------------------------
Source: Toronto Real Estate Board
---------------------------------------------------------------------------

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

TREB and GTA Resale Housing Market-Transactions and Prices in January

TREB just reported the January sales figures

Summary:

• Average sales prices dropped to 343,632 compared to 361,415 down about 5% compared to previous month
• Number of transactions in January were 2670 compared to 5075 for January of 2008, down about 53%

This is the complete press release from TREB today

I hope this finds you happy and healthy,
Mark

GTA REALTORS® Report 2,670 Resale Housing Transactions in January

TORONTO - February 5, 2009 -- TREB Members reported 2,670 sales in January from the 5,075 sales reported in the first month of 2008. Of these, 1,106 transactions took place in the City of Toronto compared to 2,128 in January 2008. In the surrounding “905” area, 1,564 sales were recorded, from 2,947 last year.

The GTA housing market has not been immune to the economic slowdown in Canada. Some potential home buyers were less-certain about their positioning in the economy over the past year. Until the economy rebounds, and along with it consumer confidence, the number of existing home sales will be more moderate in comparison to the average over the last ten years.

Home prices also moderated in January. The average MLS selling price dipped to $343,632. The average price was $364,415 in the City of Toronto, from $404,202 in 2008. In the surrounding regions (“905” area code), the average price was $328,935 from $352,965 last year. Buyers have experienced more choice in the existing home marketplace. Lower selling prices have resulted.

It should be noted that the GTA housing market has followed the broader economic slowdown, but was not a cause of the downturn. Home prices remained affordable throughout the new millennium. The average family can still qualify for a mortgage on the average priced home. This remains the case today. Given that we are not facing an early-1990s-style affordability crisis, the rebound in the housing market will likely be quick once economic recovery takes hold.

Median Price

The median price in January was $303,000 from the $319,000 recorded during January of 2008.

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

Positivity, your key to success! - 4.39% 5 year fixed!

This is a great article, which I agree with too!

Good afternoon,

As you may now be aware, the Bank of Canada dropped their rate by 50 basis points yesterday bringing the prime rate down to 3.00%, which lenders are quickly matching.

This is the lowest the prime rate has been in history, which adds to the opportunity homebuyers have to purchase new property in this market, and for existing homeowners to refinance their existing mortgages. Lenders have already begun lowering their 5 year fixed rates to as low as 4.39%!


These new rates could be enough to change a homebuyers attitude and potentially spark them into taking action. By keeping your attitude positive, you put out a positive vibe which is picked up on by everyone speak with, particularly your clients.

When people around you pick up on your positive vibrations, they will be more inclined to make the that buying decision.

A great way to maintain a positive attitude is to set aside an hour a day to read books on success, which can do wonders for your thinking patterns.

Some books I highly recommend include:


- Think and Grow Rich by Napoleon Hill,
- Think Big and Kick Ass by Donald Trump
- Secrets of the Millionaire mind by T. Harv Ecker
- The Power of Now by Eckhart Tolle
- Awaken the Giant Within by Anthony Robbins


Another great program is "Six Minutes to Success". This program is produced by Bob Proctor who you may know from the documentary 'The Secret'. If you have not seen 'The Secret' I highly recommend purchasing the DVD.

There is great opportunity out there, so let's take advantage of it! Now IS the best time to buy house! The lowest 5 year fixed rate again is 4.39% and the lowest variable is 3.80% (prime + 0.8%).

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