jeremytaylorteam.com

CREA Boosts Annual Resale Housing Forecast

jeremytaylorteam — Tue, 08 Feb 2011 19:30:42 +0000

OTTAWA – February 8, 2011 – The Canadian Real Estate Association (CREA) has
revised its 2011 forecast for home sales activity via the Multiple Listing Service® (MLS®)
Systems of Canadian real estate Boards and Associations, and extended it to 2012.
Sales in the second half of 2010 rebounded faster than CREA had previously expected.
“The hand-off going into 2011, together with the highs and lows for sales activity posted
in 2010, provided guidance for CREA’s revised forecast,” said Gregory Klump, CREA
Chief Economist.
“Home buyers recognize that low mortgage interest rates represent a once in a lifetime
opportunity. At the same time, they expect that rates will rise, so they’re doing their
homework in order to understand what it could mean in terms of higher mortgage
payments down the road before they make an offer,” said Georges Pahud, CREA
President. “The housing market and buyer psychology is different now than it was at the
beginning of last year, so buyers and sellers would do well to consult their REALTOR®
to understand local market trends.”
The upward revision to CREA’s forecast for 2011 reflects recent improvements in the
consensus economic outlook and a further expected improvement in consumer
confidence. National sales activity is now expected to reach 439,900 units in 2011,
representing an annual decline of 1.6 per cent. In 2012, CREA forecasts that national
sales activity will rebound by three per cent to 453,300 units, which is roughly on par
with the ten year average.
“Recent additional changes to mortgage regulations will further ensure that buyers don’t
buy more home than they can afford when interest rates inevitably rise,” said Klump.
“The announcement of the new changes to mortgage regulations will likely bring forward
some sales into the first quarter that would have otherwise occurred later in the year,
particularly in some of Canada’s more expensive housing markets. This is expected to
produce a milder version of the volatility in sales activity that we saw last year which
resulted from additional transitory factors.”
Three transitory factors contributed to volatility in sales activity last year: changes in
mortgage regulations announced last February, the early withdrawal by the Bank of
Canada of its conditional commitment to keep interest rates on hold until the second half
of 2010, and the introduction of the HST in BC and Ontario during the summer of 2010.
CREA expects that home sales activity will gain traction after dipping in the second
quarter as the economic recovery and job growth continue, incomes grow, and
consumer confidence further improves. “Even though mortgage interest rates are
expected to rise later this year, they will still be within short reach of current levels and
remain supportive for housing market activity. Strengthening economic fundamentals will
keep the housing market in balance, which will keep home prices stable,” said Klump.

The national average home price is forecast to rise 1.3 per cent in 2011 and 2012, to
$343,300 and $347,900 respectively. Average price is expected to rise modestly in most
provinces, reflecting the continuation of a healthy balance between supply of, and
demand for, homes listed for sale. Although the supply of new listings is expected to
trend higher, the expected continuation of sellers’ market conditions in Manitoba is
forecast to result in a bigger percentage increase in average price in 2011 and 2012
compared to other provinces.

Mortgage Rate Update

jeremytaylorteam — Thu, 13 Jan 2011 15:17:29 +0000

No changes in the rates to note however we do want to share this article with you. Flaherty: Loonie will stay at par with U.S. thanks to “sound” fiscal situation

· Canadian 5 year bond yields markets +.03bps to 2.53. The spread (based on the new 5 year rate published rate of 3.99%) is mid comfort zone at 1.46.

The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Currently lenders are looking for a spread between 1.35 and 1.55

Your Mortgage Team

Tom and Mandy Szucs

Mandy Szucs, AMP | Mortgage Broker

(FSCO Lic M08002843)

Real Mortgage Associates (FSCO Lic 10464)

‘(905) 469-0766 | 6(905) 469-2701 | 8MandySzucs@RMABroker.ca

www.OakvilleMortgageTeam.com

Flaherty: loonie will stay at par with U.S. thanks to “sound” fiscal situation

By Lee-Anne Goodman, The Canadian Press

WASHINGTON – The Canadian loonie will hover at parity with the U.S. dollar for some time to come, and deservedly so thanks to Canada’s economic strength, Finance Minister Jim Flaherty said Wednesday.

“This is a new world,” Flaherty told reporters after speaking about controlling debt at a think-tank discussion at the Woodrow Wilson International Center for Scholars in the U.S. capital.

The high Canadian dollar reflects a “sound fiscal situation” in Canada, he added.

“It is unreasonable, given those fundamentals, for anyone in Canada to expect the Canadian dollar to go back to the days when it was significantly devalued vis-a-vis the U.S. dollar…. it makes sense for the Canadian dollar to be much closer to the U.S. dollar that it was for some years.”

The Canadian dollar hit a two-and-a-half year high earlier Wednesday of $0.9848, or US$1.0154. It closed the day at $0.9869 to the U.S. dollar, or US$1.0133. The loonie’s been at or near parity with the U.S. currency for weeks, a state of affairs that causes headaches for Canadian exporters who get paid in American dollars.

That’s why Ottawa is throwing a lifeline to exporters and manufacturers by lowering corporate taxes, reducing tariffs and extending an accelerated capital cost write-off, Flaherty said.

The capital cost measure allows companies to accelerate the rate at which they can write off investments. It was scheduled to expire in 2011.

The finance minister spoke to the media after an event that proved something of a Canadian love-in. Those in attendance included Gary Doer, the Canadian ambassador to the U.S., and astronaut Julie Payette, who recently signed on for an eight-month stint as a public policy scholar at the Woodrow Wilson Center.

“We look at Canada as a good example of what we ought to do on several different fronts,” David Biette, the director of the centre’s Canada Institute, told Flaherty.

The finance minister also said Canada would put global financial standards in place well before deadlines imposed by the Basel Committee of international bank regulators.

The new regulations, dubbed Basel Three, are supposed to be in place by 2019. But Flaherty said Canada will move much faster than that, adding the new rules aren’t onerous for Canadian financial institutions since they already practise so many of them.

The new standards would require banks to prepare for economic recessions by holding onto more cash and assets that can be easily sold off. They aim to ensure taxpayers aren’t on the hook when a financial institution fails amid a global financial meltdown.

“It’s an advantage for our financial system to move more quickly to the Basel III standards,” Flaherty said. “It creates more business confidence. It creates more confidence outside of Canada for direct investment in Canada.”

Fixed Mortgage Rates to Increase

jeremytaylorteam — Thu, 16 Dec 2010 13:52:51 +0000

Hi All,

Here is a mortgage update from my mortgage partners,

The fixed rate increase imminent. As a result in the increase in bond yield the lenders spread has reduced beyond the lower level of the spread forcing fixed interest rates to increase.
While the majority of the banks will increase tomorrow we do still have 3.74% 5 year fixed closed for the time being; it will not last.

· Canadian 5 yr bond yields markets +.09 to 2.58. The spread (based on the 5 yr rate published rate of 3.79%) has fallen out of the comfort zone at 1.21
The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Currently lenders have adjusted the spread they are looking for to be between 1.40 and 1.65

Upcoming Bank of Canada meeting’s scheduled for 2011: January 18, March 1 and April 12

Your Mortgage Team

Tom and Mandy Szucs

Mandy Szucs, AMP | Mortgage Broker
(FSCO Lic M08002843)

Real Mortgage Associates (FSCO Lic 10464)
‘(905) 469-0766 | 6(905) 469-2701 | MandySzucs@RMABroker.ca
www.OakvilleMortgageTeam.com

2192 Amberglen Court

jeremytaylorteam — Wed, 24 Nov 2010 16:58:09 +0000

Property Description

Fabulous Mattamy Wildberry townhome. This beautiful end unit is located on a quiet court in West Oak Trails.
Neutral decor & open concept 3 bedroom, 2.5 bathroom. Bright kitchen and breakfast area overlook cozy
family room with gas fireplace and media niche. Handy 2nd floor laundry room.Master bedroom equipped
with ensuite with soaker tub and separate shower. Walkout from basement to massive sun drenched lot.

Property Details

Listing Price: 435000
Address: 2192 Amberglen Court
City: Oakville
State: Ontario
ZIP: L6M4W8

MLS # (if any):
Square Feet: 15766
Bedrooms: 3
Bathrooms: 2.5
Basement (full, 1/2, finished, unfinished): Full, Unfinished, Walkout

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2198 Amberglen Court

jeremytaylorteam — Mon, 22 Nov 2010 20:10:55 +0000

Immaculate Designer Freehold Town! Located on a quiet court in West Oak Trails. Stunning Decor with hardwood floors, crown molding, upgraded ceramics in Foyer. Enjoy the contemporary kitchen with upgraded cabinetry, built in Microwave and pewter hardware. Upgraded carpeting and stair picket. Upgraded light fixtures and floor vents. Beautiful landscaping and back patio. Nothing has been overlooked here. Just move in and enjoy!!

Property Details

Listing Price: 353,000
Address: 2198 Amberglen Court
City: Oakville
State: Ontario
ZIP: L6M4W8

MLS # (if any):
Square Feet: 1240
Bedrooms: 3
Bathrooms: 1.5
Basement (full, 1/2, finished, unfinished): Full, Unfinished