RE/MAX reports on first time buyers

This is a report issued by REMAX for first time buyers. REMAX feels that first time buyers will be the main force in the residential market this year.
All the best!
Mark


First-time buyers driving force in Canada's residential real estate markets, says RE/MAX

Mississauga, Ontario (March 11, 2009) - A report released today by RE/MAX confirms that entry-level purchasers are now the engine driving home-buying activity in almost every major centre in Canada.

The 2009 RE/MAX First-Time Buyers Report highlighting first-time buying activity in 32 residential housing markets across Canada found that improved affordability is prompting many first-time buyers to get off the fence, out of the rental, and into the market.

Increased inventory and longer days on market coupled with the lowest lending rates ever are presenting opportunities that have not been seen in almost a decade.

While a sense of caution still prevails, more and more first-timers are finding it hard to pass up the chance to become homeowners in today's buyer-centric real estate climate.

The new reality is that homeownership remains well within reach for most first-time buyers."

"While the current economic crisis has caused some first-time buyers to either take it slowly or apply the brakes, home ownership remains a top priority for those who are able to take advantage of reduced carrying costs, rock bottom interest rates and lower house prices," explains Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Affordability has greatly improved and buyers are firmly in the drivers' seat in just about every market we surveyed.

Other banks around the world are following the Bank of Canada

this is an interesting report from RBC about the Bank of England reducing their prime rate by .5%
thanks
Mark

Highlights

Canada's economy crumbled in

late 2008, with real GDP contracting

at the fastest pace in 17 years.

The slumping labour market and

housing slowdown point to the

economy continuing to contract in

the first half of 2009.

The Bank cut the policy rate

again in early March and said it is

considering implementing quantitative

or credit easing to ensure

that monetary policy stimulus is

adequate.

The Bank of England (BoE) and

ECB also trimmed their policy rates

and the BoE launched a quantitative

easing program.

BoE cuts rates; announces quantitative easing plan

The BoE cut the policy rate by 50 basis points in early March to 0.5% and announced that it would purchase financial assets financed by the issuance of reserves. The details of the plan showed the BoE intends to buy both corporate debt and government bonds, with the majority of assets purchased being medium and long-term Treasury debt.

Recessionary conditions, globally and in the U.K., were deemed to threaten an undershooting of the 2% medium-term inflation target necessitating the aggressive policy actions.

In the Eurozone, the ECB cut its policy rate by 50 basis points to 1.5%, the lowest in its 10- year history. While there was no overt talk of quantitative easing, ECB President Trichet did not rule out using new "non-standard measures" as forecasts for growth and inflation were cut back.

Real estate prices recovered in February 2009 compared to January 2009

This chart below shows you the average residential price of single family homes for the past 14 moths in the GTA. Note that prices have recovered in February 2009 compared to January 2009

Greater Toronto REALTORS® Reported 4,120 Resale Housing

Transactions in February TORONTO - Thursday, March 5, 2009

Toronto Real Estate Board Members reported 4,120 sales in February 2009 compared to 6,015 sales recorded in February 2008. The average home price was $361,305 last month compared to $382,048 during the same month last year.

“A considerable number of transactions continued to take place in February 2009. Motivated buyers and sellers, who were aware that market conditions changed over the past few months, were able to negotiate transactions acceptable to both parties,” said Toronto Real Estate Board President Maureen O’Neill.

On a month-over-month basis, sales and average price were above January levels of 2,670 and $343,632 respectively. The housing market is seasonal. Traditionally, in the first half of every year, sales and average price climb to their highest levels in late spring before trending lower from July onward.

“While the economic downturn has had an impact, the GTA housing market is resting on a solid foundation. Current home prices and mortgage rates suggest that GTA homes have become more affordable on average,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “A greater number of home buyers could take advantage of this affordability once their positioning in the economy becomes more certain.” Typically the spring real estate market tends to experience more activity and with the Canadian economy experiencing a period of low mortgage rates and strong immigration, this trend could continue.

According to Statistics Canada, Canada welcomed 247,202 permanent residents in 2008, 70,000 more than in 1998, and well within the government’s planned range of 240,000 to 265,000 new permanent residents for 2009. The TREB President pointed out that Greater Toronto REALTORS® are an integral part of the real estate transaction process. “TREB Members are uniquely positioned to help home buyers and sellers adapt to changing market conditions,” added Ms. O’Neill. “In addition, TREB continues to advocate public policies that do not threaten affordability but support home ownership in the GTA such as lower taxation and less regulation.”

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 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.

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.

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

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

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

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

TERM	POSTED	Best RATES*
6 Month	5.2%	5%
1 Year	5%	3.89%
2 Year	5.75%	4.34%
3 Year	5.75%	4%
4 Year	5.69%	4.19%
5 Year	5.79%	4.22%
7 Year	7%	5.9%
10 Year	7.35%	6.05%
Variable Rate		3.75%
Prime Rate		3%

* 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

• Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• Power of Sales and Foreclosures
• If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
• See seasonal housing patterns
• Would you like me to send you a 2009 Calendar?

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
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