Monday, March 09, 2009

Bank of Canada slightly optimistic, reports RBC

RBC reported that they felt the Bank of Canada was slightly optimistic in their outlook. The prime rate is now at a historic low of .5% which translated into unprecedented mortgage interest rates of 2.5% plus .7% for variable and fixed rates in the 3.5% range.

The full report is below.

All the best,
Mark

Bank of Canada in action!

The Bank of Canada cut the overnight rate by 50 basis points to 0.5% in early March and

made two uncharacteristically candid statements. First, the Bank vowed to maintain the

0.5% rate "at this level or lower" until the economy shows sufficient strength to close the

output gap, thereby mitigating the downside risks to the inflation outlook. Secondly,

policymakers indicated that they were contemplating adding stimulus to the economy

through some form of quantitative or credit easing, the details of their ruminations will be

announced in mid April.

There was a note of optimism in the statement as the Bank asserted that fiscal and

monetary policy stimulus will support the economy in the second half of the year. Additionally,

the Bank views Canada as being in a better position than most countries and

forecasts a stronger rebound once the global economy stabilizes. Our base case view is

that the amount of fiscal and monetary policy stimulus will return the economy's growth

rate to the positive column later this year but given the upheaval in the global economy,

a shift to less-traditional measures cannot be ruled out if the economy fails to revive.

The inclusion of the reference to quantitative and credit easing

indicates that the Bank is keeping its options open as it works to nurse the economy back

to health and that policymakers here are ready to follow the lead of the U.S., U.K. and

others in moving to more innovative ways to attack the problems.

Sunday, March 08, 2009

RBC comments that last quarter of 2008 was worse than expected

The RBC reported that the 4th quarter of 2008 contracted more than was expected. This may translate into a deeper recession than first predicted. Real estate in Mississauga seems to be moving along at a good pace.

I hope this finds you happy and healthy,
Mark




Economic forecast update — or rather downgrade!

We are anxiously awaiting the time when our forecast for the U.S .economy will look too pessimistic, however, that time has not yet arrived. In fact, even historical data on the U.S. economy are being revised downward, with Q4 2008 real GDP contracting at a whopping 6.2% annualized pace, a much faster rate than the 3.8% annualized decline reported in the advance report.

Data released for January and February were also generally grim and we look for a 4.8% annualized decline in Q1, followed by a 2.3% drop in Q2 2009.

Our assessment is that the cocktail of fiscal and monetary policy stimulus measures will contain the financial market storm and ultimately lend support to the economy and an increase in output in the second half of the year.

Still, backed by the severe slump in late 2008 and two more quarterly declines, the U.S. economy is forecast to contract by 2.4% in 2009, a bigger drop than our previous forecast of a 1.7% decline.

The revised number highlighted a retrenchment by both consumers and businesses which, combined with a sharp pull-back in trade flows, saw the economy contract at the fastest pace since 1982. Only an increase in government spending was worth mentioning.

Saturday, March 07, 2009

Clocks Change / Battery Replacement

This was forwarded to me, great advice.

Important reminder - when you are walking about your house changing the time on your clocks, coffemakers, microwaves, etc, take a moment to change the batteries in your smoke alarms.

After all, it doesn't matter if you know what time it is if you are having smoke inhalation "issues"!

Even electrically powered smoke alarms can have back-up batteries, and your CO detector may need a battery too.

You also want to suck the dust out of your detectors with a vacuum, and if the smoke alarm is older than 10 years, you should replace it (CO alarms should be replaced every 7 years).

Thanks,
Mark

Good news on the horizon

I know you are interested.

The US$ just broke today.

Which means the markets are going for another short-term rally.

Including OIL. But not GOLD.

You never make anything if you don't sell. In other words, to make money you have to SHORT aka sell.

For example, when you sell a house only the seller makes money, the buyer buys "hope". It's time for the buyers to be buying as interest rates are at all time lows and the values have dropped, good buying opportunities in Mississauga and GTA

Now we are playing against another drop in the US$. The markets will go up as long as the US$ goes down.

See this graph: http://www.mississauga4sale.com/Market-Emotions-Cycle.htm
In my view we are only near the panic and despondency area of this cycle, so we still have some way to go!
Good luck,
Mark

Friday, March 06, 2009

Mortgage Interest Rate announcement

Good Afternoon,

The banks followed the Bank of Canada lead yesterday and reduced their prime lending rate to 2.50%.
However, the banks have not announced rate decreases on fixed rate mortgages. It's not unusual for these changes to trickle in....almost as if they are all waiting for someone else to make the first move!

These are the latest rates, I hope to be able to communicate some further decreases within the week.

Please call if you have any questions, or if I can help you in any way.

Best rates as of March 4th, 2009*

Prime...............2.50%
Variable............Prime plus .80%
1 yr closed.......3.50%
2 yr closed.......3.90%
3 yr closed.......4.00%
4 yr closed.......4.14%
5 yr closed.......4.19% (over $500K; under $500K rate is 4.29%)
7 yr closed.......5.90%
10 yr closed.....6.05%

*Rates subject to change without notice

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL
: mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com



Thursday, March 05, 2009

Mortgage interest rates for longer terms are falling slightly

You will see the current posted and best mortgage rates available in the GTA in the table below.

Longer term rates are falling, this is good news for anyone thinking of buying in the next few months!

I hope this finds you Happy and Healthy!

All the Best!

Mark

TERMPOSTED Best RATES*
6 Month 5.2%5%
1 Year5%3.89%
2 Year5.75%4.34%
3 Year5.75%4%
4 Year5.69%4.19%
5 Year5.79%4.22%
7 Year7%5.9%
10 Year7.35%6.05%
Variable Rate3.75%
Prime Rate3%

* Rates are subject to change without notice.

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com


Tuesday, March 03, 2009

Bank of Canada drops Prime Rate .5%

The Bank of Canada dropped the prime rate today by 1/2% to .5% from 1%.

The major lenders followed suit and reduced their bank rates from 3% to 2.5% which means that variable rate mortgages instantly fall and most likely the major banks will be dropping short and long term mortgage rates over the next few days

Other news, the price of gold per ounce in USD was $913 today, down from just over USD1000 a week ago

This is the time to purchase real estate if you want a great mortgage rate

All the best
Mark
Sent from my BlackBerry device on the Rogers Wireless Network

Friday, February 27, 2009

Bottom line in Mississauga residential real estate

The bottom line is that you want an agent who will:
  • do a great job for you at all times
  • represent your best interests
  • create excellent marketing materials for the sale
  • deal fairly with the other agents which correlates to your benefit and n
  • negotiate very hard to get you the best price and terms.

    I will do an excellent job for you at every step of your sale!
Thank you and have a nice day,
Mark

Mississauga Real Estate

Mississauga realtor provides valuable home selling information

When you're selling your home I will prepare comparative marketing analysis and advise you on your Home's market value

I will list your house to the multiple listing service in the Toronto area which is the database of property for sale that all the other realtor is on the front real estate board can find and see information about your home

I will negotiate all offers on your behalf

I will ensure that you get the best pricing terms for your home in this difficult market

The reason you want to use me as your agent in Mississauga and Churhcill Meadows or Erin mills is because I understand all the economic trends in the current realestate market

I know the local marketplace and can sell Homes at the highest price in the shortest period of time with the best terms and conditions for you the seller

I've sold two homes in Churchill Meadows in January and early February of 2009 and can certainly service your real estate needs as well

Have a great evening

Good evneing

from Mark Argentino


I hope this finds you Happy and Healthy!


All the Best!


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com







Thursday, February 26, 2009

Power of Sales Percentage Increase in past 2 years

I received another great email question and I thought I would share my answer with you.
Hi Mark,

Out of curiosity, what is your best estimate as to the % increase in foreclosures/powers of sale in the Oakville and GTA area over the last ~2 years?

I am 26 yrs old and in the market for a house (I will be getting married this summer). I first started searching for homes in 2007 realizing that prices were massively inflated. I've been waiting for these days of crumbling home values, and like you, I follow TREB statistics and plot them on a monthly basis to get a good indication of where the housing market is going. Hence, I was just wondering (as another 'indicator') what the approx. increase in foreclosures has been. I'll also mention that I am currently working as a mechanical engineer (in training), so as you can understand I do have a "technical" interest in the housing market :)

Any response would be helpful. Thanks.

Regards

MC



Hello MC,

Thank you for your real estate inquiry. Nice to hear you are getting a good education, nothing will replace that in your life !

POS properties have increased in Mississauga from about 40 to 43 at any one time to 50 to 55 at any given time, thus about 20%, on average.

Yes, average prices have fallen, but a great part of the drop is due to the upper valued homes dropping by 100k or more. The lower end of the market is still 'tight' so I don't see those prices falling much further than existing levels. Mortgage rates are at or near all time lows. You will only know that prices have bottomed about 2 to 4 months after they have bottomed, and that will be too late. Prices will have possibly escalated 5% or more by that time.

I can't predict more than 2 to 4 weeks in the future, but nobody knows the direction of our marketplace for sure, nobody. I think we may see a small increase this spring, then another drop in the summer and another rise in the fall. Where the absolute average price is in the fall is anybody's guess. Many are predicting another 5 to 10 drop, so hold on!

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com