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

Economy is humming in Canada, will it last?

2012-02-29T17:40:00.004-05:00

This article below summarizes what has been happening in Canada recently and the outlook for the economy from the view point of TD Canada Trust They are optimistic on some points and pessimistic on others, enjoy the read! Mark

HOPE BOLSTERS MARKETS, BUT CAN IT LAST?

Highlights

• Financial market sentiment has proven far more upbeat than expected in early 2012, supported by reduced risks of a systemic banking crisis in Europe and better-than-anticipated U.S. economic data.

• This improved sentiment and market trends have led to an upward revision to our long-term government bond yield forecasts, with Canadian 10-year bond yield to reach 2.85% by year-end. We have also increased our near-term commodity price forecasts.

• Given all of the positive news factored into the current strength of the Canadian dollar, there is risk of a near-term pullback. Nevertheless, the loonie should trade broadly in a 5 cent range above and below parity over the medium term.

• The positive financial sentiment belies the continued risk-filled environment. We continue to see risks from the European fiscal crisis, the slowdown in emerging market economies, and now from high oil prices. Volatility is likely to increase in the coming months.

With two months of 2012 now under our belts, the mood on global financial markets is decidedly calmer than we had anticipated. The S&P/TSX has rallied so far this year, and measures of market volatility have returned to more normal levels (see chart). Markets seem far more confident that European leaders will be able to manage their sovereign debt crisis without triggering global contagion. Particularly, the European Central Bank's (ECB) first injection of liquidity to the banking sector back in December helped to dramatically ease liquidity pressures in the financial system. Expectations are high for the take-up on the next opportunity for financial institutions to tap cheap three-year loans from the ECB, on February 28th. Consensus expectations are for around €470 billion Euros of loans to be extended, which is just shy of the amount loaned in December. While the increased liquidity to the banking system is unquestionably positive, it does not address the fiscal challenges facing European governments.

Last week, leaders also managed to agree on a second bailout package for Greece, hopefully averting a disorderly default in March. Now Greece must solicit participation from private sector bond holders for a debt swap at less than half of the par value of current Greek bonds. Unfortunately, we suspect that the current bail out package will ultimately prove insufficient to put Greek debt on a sustainable path. The Greek economy is in a rapid downward spiral that will deeply impair fiscal improvement. So, while markets are calm for now, the Greece crisis is bound to cause renewed financial market volatility in the future.

U.S. economy: hope, with a side of caution

Apart from markets stepping back from the precipice of impeding euro-driven doom, the rally seen in equities also has its roots in the more upbeat U.S. economic data so far in 2012. Both businesses and consumer confidence has improved from the lows seen last fall. And greater optimism in manufacturing is being born out in the hard production data, which continues to grow at a steady pace. Durable goods orders also point to continued strength ahead and corporate balance sheets also remain very healthy.

Perhaps the best news is that U.S. job growth has been accelerating out of its mid-2011 soft patch. Maintaining the current pace of 200,000 new jobs per month is just what is needed to sustain spending growth and help repair household balance sheets. The other good news is that the housing market is showing some signs of improvement; existing home sales and housing starts are rising, and residential investment is starting to contribute to economic growth. Auto sales also got off to a very strong start to the year.

However, just as the European risks decline, a new threat in the form of rising oil prices is rearing its head once again. Resurgent gasoline prices are making it feel like 2011 all over again. Just when just as the U.S. seems to be picking up steam, rising gasoline prices – already above $4 per gallon in California – start to bite at consumers' purchasing power. Moreover, recent increases in crude prices suggest gasoline is headed higher in the coming weeks (see chart). Tensions surrounding Iran have built a large risk premium into the price of oil, and if crude prices come down somewhat (see forecast pages 3), consumers should get some relief. But considering rising gas prices have preceded every major U.S. economic slowdown in the past 40 years, it is a risk that bears close watching.

Bottom Line

So what does all this mean for our outlook for markets? With the ECB backstopping the European banking system with cheap liquidity, a lower chance now that Greece will imminently default on its debt, and a stronger economic picture emerging from the U.S., we no longer expect a third round of quantitative easing (QE3) by the Federal Reserve. That scenario is now a risk to our outlook in the event of a worse-case outcome in Europe, or more signs the U.S. growth is faltering.

That has led us to raise our forecasts for longer-dated bond yield forecasts both in the U.S. and Canada (see table page 3). However, unlike the U.S., there has been little to cheer about in the Canadian economic data of late. That has led us to raise our year-end Canadian bond yield targets relatively less than Treasuries. Rosier market sentiment has meant commodity prices have remained firmer, and oil prices continue to rise, so we have raised our near-term crude price target accordingly, but our longer-term targets unchanged.

Our forecast for the Canadian dollar, however, has remained unchanged. With the price of oil vulnerable to a giveback if geopolitical tensions don't play out as feared, and the potential for a deterioration in market sentiment if all does not go smoothly in Europe, we still see near-term weakness in the Canadian dollar (Strong Canadian Dollar Ahead, But Mind The Potholes). Moreover, removing QE3 from our base-case outlook is a plus for the U.S. dollar, and another headwind for the loonie. But beyond that we continue to expect relatively strong macroeconomic fundamentals to support a Canadian dollar in a 5-cent range above or below parity with the U.S. dollar over the medium term.

While our pessimism of late 2011 has not been borne out, the changes to the forecast are generally positive, so they are ones we are happy to make. Now we all have to keep our fingers crossed that these new hopes aren't dashed by a continued spike in oil prices, renewed problems in Europe or a hard-landing by emerging market economies.

2012 TREB Affordability Indicator Share of Average Household Income Used for Mortgage Principal and Interest, Property Taxes and Utilities

2012-02-24T06:59:00.001-05:00

This chart plots the share of average household income that goes toward mortgage principal and interest, property taxes and utilities for the average priced home in the GTA subject to the following assumptions:
1.Average annual or year-to-date home price as reported by TREB
2.20 per cent down payment
3.Average 5-year fixed mortgage rate (Statistics Canada); 25-year amortization
4.Average property tax rate reported by/estimated from the Statistics Canada Survey of Household Spending
5.Average utilities cost reported by/estimated from the Statistics Canada Survey of Household Spending and components of the Consumer Price Index
6.Average household income reported by the Census of Canada.

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

2012 TREB MLS® Sales-to-New Listings Ratio Compared to Average Annual Per Cent Change in Home Price

2012-02-23T06:49:00.001-05:00

This chart plots the monthly sales-to-new listings ratio (blue line) with year-over-year average annual per cent price change (brown line). When the sales-to-new listings ratio moves higher, average annual per cent change in home prices generally trends higher. When the sales-to-new listings ratio moves lower, average annual per cent change in home prices generally trends lower.

2012 TREB MLS® Average Price Monthly Time Series with Trend Line Actual

2012-02-21T07:04:00.001-05:00

This chart plots monthly MLS® average price since January 1995. The blue line shows the actual average price. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual average price must occur to change the direction of the trend.

2012 TREB MLS® New Listings Monthly Time Series with Trend Line

2012-02-20T07:13:00.001-05:00

This chart plots monthly MLS® new listings since January 1995. The blue line shows actual new listings. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual new listings must occur to change the direction of the trend.

TD Canada Trust latest Economic News - February 17, 2012

2012-02-18T13:01:00.001-05:00

This is the latest news from TD Canada Trust about Candian home sales,
interesting reading indeed!
Mark

Data Release: Canadian home resales lower in January

The number of Canadian home resales fell by 4.5% in January on a seasonally-adjusted basis. This was the first monthly decline in five months, and the largest since July 2010. Still, the January resale

level is slightly above the monthly average observed in 2011.

Regionally, the January drop in resales was especially marked in Greater Toronto and Montreal.

Overall, there were declines in over half of all local markets.

Despite the volume decline, average resale prices rebounded 1.6% in January (seasonally adjusted) following a similar decline in December 2011. Prices rose both in Toronto (+3.8%) and Vancouver

(+2.7%).

Key Implications

Canada's housing market was firming up during the second half of 2011, due in large part to the relative stability of the Canadian economy, steady consumer confidence and historically low interest rates.

This month's decline is likely reflective of what will shape up to be a softer year in sales, especially when it comes to Toronto and Vancouver condos. We anticipate growth will slow down in 2012 both in terms of sale volumes (+0.5%) and prices (+2.5%). In contrast, the actual
correction is foreseen to start in 2013, with both resales and prices turning negative.

This forecast is in line with the timing of interest rate increases, which we expect will start to take hold in 2013.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
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 ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* 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
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Follow up to ADU's and Basement Apartments are now legal in Ontario due to Bill 140

2012-02-17T09:28:00.000-05:00

This is a follow up to my previous post about basement apartments becoming legal in Ontario for any age of property. It's also called an ADU - Accessory Dwelling Unit

The City of Mississauga is planning on come on board with this, but there are public information
meetings and zoning by-laws that must be updated and changed to reflect the new law. This process requires more public meetings and then council must approve the changes, I imagine it will take a while.

I'm still waiting to hear back from someone in planning department on a couple of questions.

Here is the link to our webpage with all the information :

Link to City of Mississauga Website about ADU's

You can register at :

Register for meeting about ADU's at City of Mississauga

As I find out more information about these ADU's and basement apartments in Mississauga and Ontario I'll post it here.

Thank you,

Mark

2012 TREB MLS® Sales Monthly Time Series with Trend Line

2012-02-17T06:53:00.001-05:00

This chart plots monthly MLS® sales since January 1995. The blue line shows actual sales. The brown line is the trend computed using a 12-month moving average, which exhibits no seasonal variations or other irregular fluctuations. A substantial change in actual sales must occur to change the direction of the trend.

Mortgage interest rates are going up!

2012-02-16T11:55:00.000-05:00

This was the advice from a mortgage person that just sent me information
about what's happening with mortgage lending rates. It seems that the
'specials' for the fixed rate mortgages are dissappearing. If you are
purchasing or renewing, now is the time to lock in, assuming that's the
route you want to go. Read about it below.

You know my advice, go variable, read more about it here:

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

All the best!
Mark

Hi Mark ,

Last few days we have seen quite a few lenders have cancelled the special
rates for 4 year fixed @2.99%. I expect all lenders will follow.

What can you do to help yourself?

If you have put a purchase offer, get these special rates ASAP. (Still some
lenders have great rates.)
Unforturnately most banks don't offer these rates for pre-approval.
But we do have some good news for clients to be pre-approved and hold these
historical low rates.

3 year fixed rate @2.89% available for pre-approval, rate hold for 120 days
4 year fixed rate @ 2.99% for high ratio mortgage, 3.09% for conventional
mortgage, rate hold 90 days for pre-approval.
5 year fixed rate @ 3.19% for high ratio mortgage, 3.29% for conventional
mortgage, rate hold 90 days for pre-approval.

These rates won't last long, so please act quickly if you are looking to buy
or refinance

Sales for the first half of February up by more than 9% compared to the same period last year Toronto Real Estate Board

2012-02-16T09:54:00.002-05:00

Below is the latest report from the Toronto Real Estate Board regarding the sales for the first half of February, up by more than 9% compared to the same period last year.

GTA REALTORS(r) Report Mid-Month Resale Housing Market Figures

Toronto, February 16, 2012 - Greater Toronto REALTORS(r) reported 3,206 sales through the TorontoMLS(r) system through the first 14 days of February 2012 - up by more than nine per cent compared to the 2,933 sales reported during the same period in 2011. New listings were up by 13 per cent over the same period.

"The GTA resale home market became better supplied during the first 14 days of February. If growth in new listings continues to outstrip growth in sales this year, competition between home buyers will ease. More balanced market conditions on a sustained basis would result in a lower annual rates of price growth later in 2012," said Toronto Real Estate Board (TREB) President
Richard Silver.

The average selling price during the first 14 days of February was $491,493 - up by nine per cent compared to the first 14 days of February 2011. On average, sellers received 99 per cent of their asking price and their homes were on the market for an average of 25 days.

"Both buyers and sellers are aware of the substantial competition that exists for most listings in the GTA. There is not a mismatch in expectations, so homes sell quickly at close to the asking price," said Jason Mercer, TREB's Senior Manager of Market Analysis.

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* 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
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

2012 TREB MLS® Average Resale Home Price Monthly with Three Previous Years for Comparison

2012-02-16T06:59:00.002-05:00

Explanation: This chart plots the monthly MLS® average home price for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month.

2012 TREB MLS® Sales-to-New Listings Ratio Monthly with Three Previous Years for Comparison

2012-02-14T07:07:00.001-05:00

Explanation: This chart plots the monthly MLS® sales-to-new listings ratio (SNLR) for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month. When the SNLR moves higher, annual average price growth generally increases – often at a rate well above inflation. When the SNLR moves lower, annual average price growth generally declines and can become negative.

2012 TREB MLS® New Listings Monthly with Three Previous Years for Comparison

2012-02-13T06:51:00.000-05:00

Explanation: This chart plots monthly MLS® new listings for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month.

2012 TREB MLS® Sales Monthly with Three Previous Years for Comparison

2012-02-10T07:13:00.001-05:00

Explanation: This chart plots monthly MLS® sales for the current year and the previous three years. The recurring seasonal trend can be examined along with comparisons to previous years for each month

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

Canada's Housing Market in 2012 - bubble or balloon?

2012-02-09T06:53:00.000-05:00

A client of mine just sent me this Great article below about Canada's Housing Market

I've been worried about a bubble or a balloon in our local market since about 2003 when many of us thought "prices can't go higher" and sure enough they just kept marching upward.

Since I've been plugged into the real estate market and prices since the early 80's it's difficult for me to comprehend after a rise each year since 1995 of 6 to 10% that prices can continue to escalate. It is the opposite of the old school thinking of 7 year economic cycles that we used to experience and intuitively, we all know that prices cannot continue to rise indefinitely.

So where is the peak? Nobody knows for sure, but I don't think we are there yet in the GTA

It's a little disconcerting to see prices so high. If interest rates begin to increase, as they are suggesting by the beginning of 2013 then it could start a slowdown.

In Toronto we lack listings. There has been a low amount of listings since January of 2009 and the demand just keeps on increasing, hence the multiple offers on properties that are priced well.

We are looking to purchase a bungalow in an average area of Oakville, one was listed on Monday this week for $579,900 and it sold firm by Wednesday for $620,000 I heard there were 11 offers, silly!

Any worry is as the article below states "Vancouver's ratio of home prices to incomes is the highest in the English-speaking world" and that is some cause for concern.

I was surprised to read that Toronto is building more than 75 skyscrapers compared to New York, they just don't seem to be able to build condos fast enough in Toronto for the past decade or so.

Time will tell what happens with the market. Personally, I don't see interest rates rising much more than .5% by the end of 2013 and I don't see a plethora of listings coming on the market either for the next 3 to 6 months, this only means that demand will eat up any new supply and prices will likely continue to increase for at least the next 3 to 6 months in the GTA.

All the best!
Mark

Canada's Housing Market

Look out below

After years of lecturing America about loose lending, Canada now must
confront a bubble of its own

Feb 4th 2012 TORONTO from the print edition

IN FEW corners of the world would a car park squeezed between two arms of an
elevated highway be seen as prime real estate. In Toronto, however, a
75-storey condominium is planned for such an awkward site, near the
waterfront. The car park next door will become a pair of 70-storey towers
too. In total, 173 sky-scrapers are being built in Toronto, the most in
North America. New York is second with 96.

When the United States saw a vast housing bubble inflate and burst during
the 2000s, many Canadians felt smug about the purported prudence of their
financial and property markets. During the crash, Canadian house prices fell
by just 8%, compared with more than 30% in America. They hit new record
highs by 2010. "Canada was not a part of the problem," Stephen Harper, the
prime minister, boasted in 2010.

Today the consensus is growing on Bay Street, Toronto's answer to Wall
Street, that Mr Harper may have to eat his words. In response to America's
slow economic recovery and uncertainty in Europe, the Bank of Canada has
kept interest rates at record lows. Five-year fixed-rate mortgages now
charge interest of just 2.99%. In response, Canadians have sought
ever-bigger loans for ever-costlier homes. The country's house prices have
doubled since 2002.

Speculators are pouring into the property markets in Toronto and Vancouver.
"We have foreign investors who are purchasing two, three, four, five
properties," says Michael Thompson, who heads Toronto's economic-development
committee. Last month a modest Toronto home put on the market for C$380,000
($381,500) sold for C$570,000, following a bidding war among 31 prospective
buyers. According to Demographia, a consultancy, Vancouver's ratio of home
prices to incomes is the highest in the English-speaking world.

Bankers are becoming alarmed. Mark Carney, the governor of the central bank,
has been warning for years that Canadians are consuming beyond their means.
The bosses of banks with big mortgage businesses, including CIBC, Royal Bank
of Canada and the Bank of Montreal, have all said the housing market is at
or near its peak. Canada's ratio of household debt to disposable income has
risen by 40% in the past decade, recently surpassing America's (see chart).
And its ratio of house prices to income is now 30% above its historical
average-less than, say, Ireland's excesses (which reached 70%), but high
enough to expect a drop. A recent report from Bank of America said Canada
was "showing many of the signs of a classic bubble".

The consequences of such a bubble bursting are hard to predict. On the one
hand, high demand for Canada's commodity exports could cushion the blow from
a housing bust. And since banks have recourse to all of a borrower's assets,
and Canadian lending standards are stricter than America's were, a decline
in house prices would probably not wreck the banks as it did in the United
States.

However, the Canadian economy is still dependent on the consumer. Fears
about the global economy have slowed business investment, and all levels of
government are bent on austerity. The Conservative government's next budget
is expected to put forward a plan to close the federal deficit, now 2% of
GDP, by 2015-modest austerity compared to Europe's, but still a drag on the
economy. Few new jobs are being created. Assuming there is no setback in
Europe's debt crunch, slowdown in America or drop in commodity prices, GDP
is forecast to grow by a meagre 2% this year. If consumers start feeling
less well off, Canada could slip back into recession.

The inevitable landing will probably be soft. Increases in house prices and
sales volumes are slowing, and the 2015 Pan American Games in Toronto should
prop up builders. "The national housing market is more like a balloon than a
bubble," says a report by the Bank of Montreal. "While bubbles always burst,
a balloon often deflates slowly in the absence of a 'pin'."

Moreover, the government is trying to cool the market. The banking regulator
is increasing its scrutiny of housing in response to concerns about
speculators. The Canada Mortgage and Housing Corporation, a government
mortgage-insurance agency, says it will have to start reducing its new
coverage because of legal limits. And the finance ministry has cut the
maximum term of publicly insured mortgages from 35 years to 30. Some bank
managers are calling for it to be reduced to 25, the historical norm.
Canada's reputation for financial sobriety is not entirely unwarranted.

However, the state has refused to use its most powerful tool. To protect
business investment, the central bank has made clear that it plans to keep
interest rates low. As long as money stays cheap, the balloon could get
bigger-perhaps big enough to become a fully fledged bubble after all.

from the print edition The Americas

Basement Apartments are now legal in Ontario due to Bill 140

2012-02-07T06:58:00.000-05:00

Another huge change in Ontario that was just announced is in Bill 140 which has one change in housing.

From now onwards, if a property meets building code and Fire Safety standards, you can legalize any second dwelling in a single family home.

This means that basement apartments have become legal again and this will allow many people who can't afford to purchase a home to get into the market because they can earn income from a basement apartment, legally.

This means the banks will give a mortgage partly based upon current or expected income from the basement apartment and this means that demand will increase and prices will likely follow!

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

Prices up about 9% Toronto Real Estate Board January housing figures in the GTA

2012-02-06T06:51:00.000-05:00

This is the brief summary of the Toronto Real Estate Board on January housing figures in the GTA

Prices are up about 9% compared to January 2011

Read more below

For all the graphs and details see:

http://www.mississauga4sale.com/TREBprice.htm

GTA REALTORS(r) RELEASE MONTHLY MARKET FIGURES

Greater Toronto REALTORS(r) reported 4,567 sales through the TorontoMLS(r) system in January 2012.

This number was 8.8 per cent higher than the 4,199 sales reported in January 2011.

Sales growth was strongest for low-rise home types in the regions surrounding the City of Toronto. "A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership,"
said Toronto Real Estate Board President Richard Silver. "The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum," continued Silver.

The average selling price for January 2012 transactions was $463,534 - up by almost nine per cent compared to January 2011.

"Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year. Strong price growth is expected to attract more listings.

A better supplied market should result in a slower rate of price growth, especially in the second half of 2012," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis.

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* 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
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Bank of Canada Prime Interest Rate latest announcement

2012-02-05T21:47:00.000-05:00

The Bank of Canada just announced to keep the prime interest rate at 1.0%

This means that the bank prime interest rate charged to customers will remain at 3.0%

The Bank of Canada has announced that the key interest rate will remain at 1.00%

On January 17th the Bank announced:

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

This comes as no surprise as no rate hikes or cuts were anticipated by the vast majority of analysts and financial writer

The next scheduled date for announcing the overnight rate target is 8 March 2012.

The full announcement was:

Ottawa -

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The outlook for the global economy has deteriorated and uncertainty has increased since the Bank released its October Monetary Policy Report (MPR).

The sovereign debt crisis in Europe has intensified, conditions in international financial markets have tightened and risk aversion has risen.

The recession in Europe is now expected to be deeper and longer than the Bank had anticipated in October. The Bank continues to assume that European authorities will implement sufficient measures to contain the crisis, although this assumption is clearly subject to downside risks. In the United States, while the rebound in real GDP during the second half of 2011 was stronger than anticipated, the Bank expects the U.S. recovery will proceed at a more modest pace going forward, owing to ongoing household deleveraging, fiscal consolidation and the spillovers from Europe. Chinese growth is decelerating as expected towards a more sustainable pace. Commodity prices - with the exception of oil - are expected to be below the levels anticipated in the October MPR through 2013.

The Bank's overall outlook for the Canadian economy is little changed from the October MPR. While the economy had more momentum than anticipated in the second half of 2011, the pace of growth going forward is expected to be more modest than previously envisaged, largely due to the external environment. Prolonged uncertainty about the global economic and financial environment is likely to dampen the rate of growth of business investment, albeit to a still-solid pace. Net exports are expected to contribute little to growth, reflecting moderate foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar. In contrast, very favourable financing conditions are expected to buttress consumer spending and housing activity. Household expenditures are expected to remain high relative to GDP and the ratio of household debt to income is projected to rise further.

The Bank estimates that the economy grew by 2.4 per cent in 2011 and projects that it will grow by 2.0 per cent in 2012 and 2.8 per cent in 2013. While the economy appears to be operating with less slack than previously assumed, given the more modest growth profile, the economy is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October.

The dynamics for inflation are similar to those anticipated in the October MPR, although the profile for inflation is marginally firmer. Both total and core inflation are expected to moderate in 2012 and subsequently rise, reaching 2 per cent by the third quarter of 2013 as excess supply is slowly absorbed, labour compensation grows modestly and inflation expectations remain well-anchored.

Several significant upside and downside risks are present in the inflation outlook for Canada. Overall, the Bank judges that these risks are roughly balanced over the projection horizon.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.

Great GTA mortgage interest rates available

2012-01-31T08:47:00.001-05:00

Hello!

If you are interested, I have some lenders who are offering the following:

3yr fixed is 2.79

4yr fixed is 2.89

5yr fixed is 3.09

or see best rates here: http://www.mississauga4sale.com/bestrate.htm

Just email me and I'll send you their information

Thanks

Mark

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* 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
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Bank of Canada interest rate announcement maintains overnight rate target at 1 per cent

2012-01-17T11:51:00.002-05:00

The Bank of Canada is keeping the overnight internet rate fixed today at 1%

This is good news, the interests rates will remain steady for at least the next while!

See the full release below.
Mark

Bank of Canada maintains overnight rate target at 1 per cent

OTTAWA, Jan. 17, 2012 /CNW/ - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The outlook for the global economy has deteriorated and uncertainty has increased since the Bank released its October Monetary Policy Report (MPR).

The sovereign debt crisis in Europe has intensified, conditions in international financial markets have tightened and risk aversion has risen.

Commodity prices-with the exception of oil-are expected to be below the levels anticipated in the October MPR through 2013.

Prolonged uncertainty about the global economic and financial environment is likely to dampen the rate of growth of business investment, albeit to a still-solid pace. Net exports are expected to contribute little to growth, reflecting moderate foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.

In contrast, very favourable financing conditions are expected to buttress consumer spending and housing activity. Household expenditures are expected to remain high relative to GDP and the ratio of household debt to income is projected to rise further.

The Bank estimates that the economy grew by 2.4 per cent in 2011 and projects that it will grow by 2.0 per cent in 2012 and 2.8 per cent in 2013.

While the economy appears to be operating with less slack than previously assumed, given the more modest growth profile, the economy is only anticipated to return to full capacity by the third quarter of 2013, one quarter earlier than was expected in October.

The dynamics for inflation are similar to those anticipated in the October MPR, although the profile for inflation is marginally firmer.

Both total and core inflation are expected to moderate in 2012 and subsequently rise, reaching 2 per cent by the third quarter of 2013 as excess supply is slowly absorbed, labour compensation grows modestly and inflation expectations remain well-anchored.

Several significant upside and downside risks are present in the inflation outlook for Canada. Overall, the Bank judges that these risks are roughly balanced over the projection horizon.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent.

With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.

Information note:

A full update of the Bank's outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 18 January 2012.

The next scheduled date for announcing the overnight rate target is 8 March 2012.

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* 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
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Months of Inventory (MOI) Indicator Toronto Real Estate Board now calculating and publishing

2012-01-12T10:54:00.003-05:00

The Toronto Real Estate Board has just released a new indicator of the market. It's called a Months of Inventory indicator. It's calculated by dividing the previous 12 month average # of active listings by the previous 12 month average number of sales. The result is the average time to sell an actively listed property!

TREB Publishing New Months of Inventory Indicator

January 9, 2012 -- Happy New Year! I hope all TREB Members had a restful holiday season after a very busy 2011. Just to recap, we had the second-best year on record in terms of sales (89,347) and the average selling price rose by eight per cent to $465,412. At the same time, total new listings for the year were down by almost four per cent.

The supply side of the market was the big story over the last 12 months. I am guessing that many TREB Members had clients who faced significant competition from other Buyers when trying to get a deal done on a home. On the flip side, I am guessing that many Members also had listings that attracted substantial interest and sold in short order for a good price.

What I am describing here is a typical Sellers' market: lots of Buyers, a shortage of listings and strong price growth.

TREB is now publishing a Months of Inventory (MOI) indicator to help Members and the public get a better handle on market conditions. MOI is also published at the national scale in Canada by CREA and in the United States by NAR. I want to briefly explain how this new indicator works and then give some examples of its use.

MOI is calculated by dividing the 12-month average for active listings by the 12-month average for sales. The result tells us how long it would have taken, on average, to sell all actively listed homes. As of the end of December, this number was 2.2 months. If, moving forward, we see the MOI trend upwards this would suggest that the market is becoming better supplied and we may see less upward pressure on price. If we see the indicator trend lower, this would suggest that market conditions are tightening and strong upward pressure will continue to be exerted on price.

In the post-recession period, MOI has hovered in the 2.0 to 2.5 month range.

This is substantially lower than the pre-recession norm of between 3.0 and 3.5 month range. When we look at market conditions in this context, it is easy to see why we have seen above average price growth over the last couple of years - eight per cent last year following nine per cent in 2010.

We can also use MOI to compare different municipalities in the GTA. A look at the MOI column on pages 3 and 4 of the December Market Watch shows us that the relationship between sales and listings varies quite a bit across the region - from a low of 1.2 months to a high of over nine months.

The MOI can also help us position the GTA within the national context.

According to CREA, MOI was 7.4 months for Canada and 4.8 months for Ontario in November versus 2.2 months for the GTA. This may suggest that the GTA market is tighter than the national and Ontario averages. With this in mind, it is not surprising that year-to-date average price growth for the GTA was in the upper third of Canadian metropolitan areas.

However, when making these types of comparisons it is important to bear in mind that each market area has evolved differently over time. So, while a more balanced market in Toronto may be associated with MOI of 3.5, other markets may be characterized by a MOI of six months.

As we move through 2012, we should expect to see the MOI start to increase.

The strong price growth we have seen over the last year should prompt more households to list. In fact, we have started to see year-over-year growth in new listings outstrip growth in sales in many parts of the GTA. If this trend continues, we will likely see the annual rate of price growth moderate into the mid-single-digits.

I hope this finds you Happy and Healthy!

All the Best!

Mark

* Thinking of selling your home in the next 3 to 6 months? Would you
like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

* Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

* 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
www.mississauga4sale.com/popupquestion.htm

* See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

* Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

This is the report for latest month in real estate sales from the Toronto real estate board and indicates a 'normal' amount of activity and price levels.

2012-01-11T20:16:00.001-05:00

You will find all the latest figures and graphs summarizing last years real
estate market at this page:

http://www.mississauga4sale.com/TREBprice.htm

This is the report for latest month in real estate sales from the Toronto
real estate board and indicates a 'normal' amount of activity and price
levels.

All the best!
Mark

The year end figures for GTA residential home sales were just published.
2011 was the second best year on record with nearly 90,000 sales up about 4%
compared to 2010

Average price for 2011 was $465,412 up about 8% compared to the 2010 average
of $431,276

See the full press release below and I will update all my graphs and
information on my website at http://www.mississauga4sale.com/TREBprice.htm
in the next couple of days.

I wish you all the best in 2012!

Mark

What were they thinking? Actual Christmas Cards??

2012-01-11T20:11:00.004-05:00

What were they thinking? Actual Christmas Cards

WOW!

What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0041 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0071 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 048 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 041 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0131 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0081 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0171 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 006 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0101 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 025 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0241 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 033 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 029 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 026 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 037 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 030 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 034 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0011 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0021 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0051 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0151 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0161 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0191 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0201 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 0211 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 028 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 035 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 036 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 038 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 039 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 046 What was this family thinking when they decided to take this photo and send it to their friends?

Family Photo Number 050 What was this family thinking when they decided to take this photo and send it to their friends?

What was this family thinking when they decided to take this photo
and send it to their friends? famille

8 Per Cent Price Increase for Toronto and GTA residential home sales for 2011

2012-01-05T11:05:00.003-05:00

The year end figures for GTA residential home sales were just published.
2011 was the second best year on record with nearly 90,000 sales up about 4% compared to 2010

Average price for 2011 was $465,412 up about 8% compared to the 2010 average of $431,276

See the full press release below and I will update all my graphs and information on my website at http://www.mississauga4sale.com/TREBprice.htm in the next couple of days.

I wish you all the best in 2012!

Mark

GTA REALTORS(r) RELEASE MONTHLY RESALE MARKET FIGURES

TORONTO, January 5, 2012 - Greater Toronto REALTORS(r) reported 4,718
transactions through the TorontoMLS(r) system in December 2011. The December
result capped off the second-best year on record under the current Toronto
Real Estate Board (TREB) boundaries. Total sales for 2011 amounted to 89,347
- up four per cent in comparison to 2010.

"Low borrowing costs kept Buyers confident in their ability to comfortably
cover their mortgage payments along with other major housing costs," said
TREB President Richard Silver. "If Buyers had not been constrained by a
shortage of listings over the past 12 months, we would have been flirting
with a new sales record in the Greater Toronto Area," added Silver.

The average selling price in December was $451,436 - up four per cent
compared to December 2010. For all of 2011, the average selling price was
$465,412, an increase of eight per cent in comparison to the average of
$431,276 in 2010.

"Months of inventory remained below the pre-recession norm in 2011. Very
tight market conditions meant substantial competition between Buyers and
strong upward pressure on selling prices," said Jason Mercer, TREB's Senior
Manager of Market Analysis.

"TREB's baseline forecast for 2012 is for an average price of $485,000,
representing a more moderate four per cent annual rate of price growth. This
baseline view is subject to a heightened degree of risk given the uncertain
global economic outlook," continued Mercer. Summary of TorontoMLS(r) Sales
and Average Price

December 1-31

2011

2010

Sales

Ave. Price

Sales

Ave. Price

City of Toronto "416"

1,948

$474,270

1,818

$463,580

Rest of GTA "905"

2,770

$435,378

2,468

$411,383

GTA

4,718

$451,436

4,286

$433,523

TorontoMLS(r) Sales & Average Price By Home Type

December 1-31, 2011

Sales

Ave. Price

416

905

Total

416

905

Total

Detached

581

1,512

2,093

701,846

525,360

574,351

Yr./Yr. % Change

12%

10%

Semi-Detached

202

289

491

517,152

365,417

427,842

Yr./Yr. % Change

20%

12%

15%

10%

Townhouse

199

517

716

372,164

333,359

344,144

Yr./Yr. % Change

20%

15%

-7%

Condo Apartment

943

363

1,306

351,104

275,173

330,000

Yr./Yr. % Change

-3%

November GTA Real Estate Sales statistics from TREB

2011-12-06T10:23:00.001-05:00

this is the report from the Toronto Real Estate Board for last months sales figures in the GTA

The Average price was $480,421 up nearly 10% compared to November 2010
The total number of sales was 7,092 up 11% compared to November 2010

See the full report below,
Mark

Healthy Fall Market Continues in November

Toronto, December 6, 2011 - Greater Toronto REALTORS(r) reported 7,092 residential transactions through the TorontoMLS(r) system in November - up 11 per cent in comparison to November 2010. At the same time, the number of new listings was up by 14 per cent in comparison to last year.

"We have seen strong annual sales growth through the 2011 fall market. The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area," said Toronto Real Estate Board (TREB) President Richard Silver.

"The market has also become better supplied, with annual new listings growth outstripping that of sales. As this trend continues into 2012, we will see more balanced
market conditions."

The average price for November transactions was $480,421, representing an increase of almost 10 per cent in comparison to $437,494 in November 2010.

"Despite strong price growth this year, the housing market remains affordable in the GTA," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The correct method of assessing affordability is to consider the share of the average household's income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace."