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

Mortgage renewal - lock in now or go short?

2010-02-08T08:07:00.001-05:00

I had another question about mortgage renewal advice and thought I would share the question and my answer.

The question was:

Hi,

I have been always checking your websites on pointers and I learned so much on it.

Now I would like to ask regarding mortgage. I am due for renewal of mortgage (oct) and cant decide what to do so Im seeking your wisdom,

I have 100,000 left from my mortgage. and now being offered by my current bank to take 2.65% for a year. If I keep the same payment, my banker said I can finish it off in 6 to 7 years.

What I used before is paying a biweekly 650.00 but each month I paid a lumpsump of at least 500.

Now on my renewal, is it best to do the same thing again? Or I can save more if upfront, I decrease my mortgage length instead by paying making my biweekly payment of 900?

Please advise.
Thanks

Rose

My answer

Hello Rose,

I am a firm believer in paying that mortgage off as soon as you can. We may never see today's' rates again. I would go with the short term variable rate and have your bank lower your amortization upon renewal until the payment is $650 or whatever your payment was before. You can get less than 2.65% on a variable rate. This should reduce your amortization to maybe about 5 years, see the calculator here: http://www.mississauga4sale.com/mortgage-amortization-creator.htm

Then you should be able to pay it off in 5 years or so.

Even if the prime rate increases later this year, which it is supposed to, the 5 year variable has to climb to about 4.75% for you to be even compared to the 2.65% mortgage for 5 years and you will still be ahead of the game.

Reason is, it may take 2 years to reach 4.75%, if ever, and then you have saved a pile in interest in the first 2 years of your mortgage. You should be earning more in 2 years from now and look at it as an investment in yourself.

Also, in 3 years, you can renew that 5 year mortgage and who knows, there may be some good specials out there that you can take advantage of.

Please make sure your payments are accelerated bi weekly or accelerated weekly, which I am guessing they are, but please confirm this with your bank.

I am always learning too in this business and I heard another gem of advice the other day. When your mortgage is coming up for renewal, look for a new bank branch opening. They often will give a discounted rate ONLY at that branch because they want new customers coming into the branch and creating accounts and business. This would be a 'branch special' and maybe a great method of getting an even better rate. My colleague who told me this said that you may be able to get an additional .5% off the best rate, because they want new business. I will look for this next time one of our mortgages comes due, sounds interesting! :-)

You should be better off in the long run going short term, read my experience here:

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

All the best!

Mark

5-year Fixed mortgage rate as low as 3.53%

2010-02-06T19:09:00.000-05:00

There are some great 'specials' out in the marketplace for mortgages in the
Toronto, Mississauga and GTA.

Good news,

Special 5-year fixed rate has dropped to 3.53%. Fully qualified quick
closing deal only (within 30 days).

Also variable rate P-0.40% (1.85%) with term around 2.5 years still
available. But it might ends soon.

To take advantage send me an email and I'll put you in touch with my
mortgage broker.

All the best,
Mark

Toronto and Mississauga Real Estate Market January 2010 is a far cry from January 2009

2010-02-05T08:09:00.000-05:00

Homes sales in the GTA and Mississauga were slightly higher than the average number of home sales in the past 5 years. If you are a buyer looking for a property right now, you know that our marketplace is very fast right now and almost everything is selling very quick.

Average prices are up considerably when you compare January 2010 to January of 2009, but the period from October 2008 to January 2009 was dismal.

In fact January of 2009 was the bottom of the slump in our market, the outlook for real estate was dismal. One year later and the outlook is incredibly different, you won't find many people who are not optimistic on real estate in Mississauga and Toronto for 2010

All the best,
Mark

Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010.

This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough. Last month’s sales were slightly higher than the January average in the five years

preceding 2009.

“The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour.

“Increasingly confident consumers moved to take advantage of affordable home ownership.”

The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.

“Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of 2009,” said Jason

Mercer, TREB’s Senior Manager of Market Analysis. “The rate of sales and price growth will be lower

Strong start to 2010 Residential Real Estate in Toronto and Mississauga

2010-02-04T10:20:00.000-05:00

These are the stats for January 2010, the Toronto and Mississauga Real Estate Marketplace began with a very strong start. Prices are up compared to same month in 09 and so are number of sales. We expect 2010 to be a strong year in real estate sales.

All the best!
Mark

GTA REALTORS® REPORT JANUARY RESALE HOUSING MARKET FIGURES

TORONTO, February 3, 2010 -- Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large

increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough.

Last month’s sales were slightly higher than the January average in the five years preceding 2009.

“Increasingly confident consumers moved to take advantage of affordable home ownership.”

The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.

“Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of

2009,”

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 2010 Calendar?

How to find Tax Sale Properties in your Municipality

2010-02-04T08:07:00.000-05:00

In order to find tax sale properties in your area, you have to contact each municipality, this is not an easy task!

Why does maintenance fee show $0 for many power of sale properties?

2010-02-03T08:05:00.000-05:00

This is a common question that I receive about POS properties and zero maintenance fees on the mls listing.

Hello Mark,

Thanks for your daily information and sure helps...I have a question for you some of the listing says $0 maintenance fees what does that really mean? Is it that the POS includes the maintenance fees for one year?

My answer is:

Hi B.

Thank you for your real estate inquiry.

The maintenance fee shows $0 because the bank does not want to take any responsibility for any oversight or underestimate of the fee, so they put $0.

We/You have to find out from us what the average is for that type of unit.

When you submit your offer, we will receive a status certificate that shows the exact fee for that particular unit.

Mark

$1500 extra taxes due to HST in real estate transactions in Toronto and Mississauga

2010-02-01T11:33:00.000-05:00

HST is coming to Ontario July 1st, 2010 whether we like it or not.

The HST effectively combines the 8% Provincial Sales Tax (PST) and the 5%
Federal Goods and Services Tax (GST) for a combined 13% sales tax rate known
as the Harmonized Sales Tax (HST).

The HST will apply to a number of goods and services that are currently
exempt.

For housing in Ontario, the HST will add 8% more tax on any services related
to real estate transactions, such as real estate commissions, legal fees,
home inspections and moving costs.

It is estimated by OREA that the HST will add about $1500 in additional
taxes to the cost of the average residential real estate transaction.

It is expected that there will be a surge in sales this spring to avoid the
HST that becomes law on July 1st.

All the best!
Mark

Power-of-sale, Foreclosure, Foreclosures and quit claim question

2010-01-29T07:15:00.000-05:00

this was one of those feel good letters I just received from a person and
thought I would share the information with you
Enjoy!
Mark

Mark,
You have one of the best site for general information and quality for make a
house sold.

My name is A .G., I am the mortgage holder of this house that we sold in T .
Ontario about three years go'.

The people in the house have develop financial problems. They start running
too many charges where now start default in not making the payments.

My question is: should I execute Power of sale or in return to have the
house with list damage I should accept the quit claim. Read about Power of
Sale and quit claim on my site here:
http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

They have zero equity in this house. They only put down $5000 on house price
of 220,000. The command price in the house is less now then when was sold.

I wish you were here and I would hire on the spot. Your luggage of
information is outstanding

Thanks,
A.

step by step outline on how to become a real estate broker in Ontario

2010-01-28T07:47:00.000-05:00

Hello Mark:

As a fellow engineer, I'm hoping you could provide me with a step by step
outline on how to become a real estate broker in Ontario. I would like to
start part time until I have enough experience to write the brokers exam.
Any assistance is appreciated.

Thank you.

Jim

My answer:

Hi Jim,

Thank you for your email. Licensing in Ontario is governed by the Ontario
Real Estate Organization.

I have a section just for people like you with questions about how to obtain
their real estate license:
http://www.mississauga4sale.com/how-to-become-a-real-estate-agent-realtor.ht
m
Their website has a step by step outline,
I wish you all the best!
Mark

Should I lock in at 5 year or variable mortgage interest rate?

2010-01-27T10:40:00.000-05:00

Another great question from an interested reader, and my answer below

Hi Mark,

After looking through a whole bunch of Google results, I found yours the
most intelligent and sensible. So, if you don't mind, I would like to ask
you this at this point in time, as your posting is somewhat old:

I am being offered these two options before my March 2 renewal date on a
$202,000 mortgage with 23 yr. amortization:

1). 5 Year Closed @ 3.81% - 23 Year Amortization with Weekly Regular
Payments: $252.77

2). 5 Year Variable @ Prime Minus 0.35% (currently 1.90%) - 23 Year
Amortization with Weekly Regular Payments: $208.32

Which one would YOU choose?

Thanks.
--
H.S.A. Harry, Calgary, Alberta, Canada

Hi H .,

I am a firm believer in paying that mortgage off. We may never see today's'
rates again. I would go with option 2 and have your bank lower your
amortization on renewal until the payment is $250 per week. This should
reduce your amortization to about 18.2 years, see the calculator here:
http://www.mississauga4sale.com/mortgage-amortization-creator.htm

Then in 5 years when it comes time to renew, you will only have 13 years
left to go on your mortgage.

Even if the prime rate increases, which it is supposed to, the 5 year
variable has to climb to about 5.5% for you to be even compared to the 3.81%
mortgage for 5 years and you will still be ahead of the game. Reason is, it
may take 2 years to reach 5.5%, if ever, and then you have saved a pile in
interest in the first 2 years of your mortgage. You should be earning more
in 2 years from now and look at it as an investment in yourself.

Also, in 3 years, you can renew that 5 year mortgage and who knows, there
may be some good specials out there that you can take advantage of.

You should be better off in the long run going short term, read my
experience here:
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

All the best!
Mark

Current Mortgage Interest rates

2010-01-26T08:54:00.000-05:00

Mortgage interest rates are changing almost weekly.

Please browse and
http://www.mississauga4sale.com/Rates-Current-Posted-Mortage-Interest-Rate.htmview the current mortgage interest rates and how they have changed over
the past few months.

You can view and compare Today's Low Canada and Ontario Current Mortgage
Interest rates from major lenders for discounted, variable, fixed and prime
rates in Canada and a mortgage calculator at this page:

http://www.mississauga4sale.com/Rates-Current-Posted-Mortage-Interest-Rate.htm

Any time you have questions about interest rates, please let me know. As an
experienced RE/MAX(r) agent who has helped many people purchase homes, I
have every confidence that I'll be able to help you find what you're looking
for as long as we work together and keep in frequent contact.

I look forward to our next meeting. Please feel free to call or email me.

You may sign up to my monthly real estate newsletter using this link:
http://www.mississauga4sale.com/popupquestion.htm; On-Line Real Estate
Newsletter sign up

Or you may wish to receive new
http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
Power of Sale Listings twice per week.

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

Number of days on market in west zones for Toronto Mississauga and GTA Real Estate Marketplace

2010-01-25T07:19:00.000-05:00

This graph shows the number of days that it takes to sell a property in the west zones in Toronto Mississauga and GTA Real Estate Marketplace. This indicates that it takes about 30 days to sell the average home in the west. This too indicates that our market is fast and homes and condos are selling quite well right now

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

Could this be the home?

2010-01-22T22:56:00.002-05:00

New listings at my site: http://www.mississauga4sale.com/listings.htm at
this link

If you'd like to view this home or any other home on the page please email
or call me anytime.

Maybe you are interested in POS (Power of Sale) listings, if so,
http://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
follow this link

Hope to hear from you soon!

Thanks again.

Ratio of Sales to active listings in west Toronto Mississauga and GTA Real Estate Marketplace

2010-01-22T07:17:00.000-05:00

This graph shows you the past 12 months in the west zones only and shows the number of sales divided by the active listings ratio for the in Toronto Mississauga and GTA Real Estate Marketplace
This indicates that about 55% or so of homes on the market are selling, this is very high compared to historical data that shows about 40 to 45% of active listings sell. Again, another indicator that our housing market is quite hot in the west GTA

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

Mortgage interest rate update for Toronto and Mississauga Real Estate Market

2010-01-21T07:53:00.000-05:00

These are the current posted and attainable mortgage interest rates for Toronto and Mississauga Real Estate Market

TERM	POSTED	BEST RATES*
6 Month	4.60%	3.50%
1 Year	3.65%	2.30%
2 Year	3.95%	2.90%
3 Year	4.50%	3.25%
4 Year	5.19%	3.84%
5 Year	5.59%	3.79%
7 Year	6.60%	5.19%
10 Year	6.70%	5.30%
Variable Rate		2.10%
Prime Rate		2.25%

*Rates may vary provincially and are subject to change without notice OAC.
Rates Last Updated: Thursday, January 14, 2010

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 ?
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 2010 Calendar?

Bank of Canada has decided to maintain the current prime overnight target interest rate at .25%

2010-01-20T07:47:00.000-05:00

The Bank of Canada has decided to maintain the current prime overnight target interest rate at .25%

The next bank rate announcement is scheduled for March 2nd, 2010

This is the entire press release below.

Enjoy!
Mark

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.

The global economic recovery is under way, supported by continued improvements in financial conditions and stronger domestic demand growth in many emerging-market economies. While the outlook for global growth through 2010 and 2011 is somewhat stronger than the Bank had projected in its October Monetary Policy Report, the recovery continues to depend on exceptional monetary and fiscal stimulus, as well as extraordinary measures taken to support financial systems.

Economic growth in Canada resumed in the third quarter of 2009 and is expected to have picked up further in the fourth quarter. Total CPI inflation turned positive in the fourth quarter and the core rate of inflation has been slightly higher than expected in recent months. Nevertheless, considerable excess supply remains, and the Bank judges that the economy was operating about 3 1/4 per cent below its production capacity in the fourth quarter of 2009.

Canada's economic recovery is expected to evolve largely as anticipated in the October MPR, with the economy returning to full capacity and inflation to the 2 per cent target in the third quarter of 2011. The Bank projects that the economy will grow by 2.9 per cent in 2010 and 3.5 per cent in 2011, after contracting by 2.5 per cent in 2009.

The factors shaping the recovery are largely unchanged -- policy support, increased confidence, improving financial conditions, global growth, and higher terms of trade. At the same time, the persistent strength of the Canadian dollar and the low absolute level of U.S. demand continue to act as significant drags on economic activity in Canada. On balance, these factors have shifted the composition of aggregate demand towards growth in domestic demand and away from net exports. The private sector should become the sole driver of domestic demand growth in 2011.

Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010 in order to achieve the inflation target. Consistent with this conditional commitment, the Bank will continue to conduct term Purchase and Resale Agreements based on existing terms and conditions and according to the accompanying schedule:

In its conduct of monetary policy at low interest rates, the Bank retains considerable flexibility, consistent with the framework outlined in the April 2009 MPR.

The risks to the outlook for inflation continue to be those outlined in the October MPR. On the upside, the main risks are stronger-than-projected global and domestic demand. On the downside, the main risks are a more protracted global recovery and persistent strength of the Canadian dollar that could act as a significant further drag on growth and put additional downward pressure on inflation. While the underlying macroeconomic risks to the projection are roughly balanced, the Bank judges that, as a consequence of operating at the effective lower bound, the overall risks to its inflation projection are tilted slightly to the downside.

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 Monetary Policy Report on 21 January 2010. The next scheduled date for announcing the overnight rate target is 2 March 2010.

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 ?
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 2010 Calendar?

Mid January 2010 Mississauga and GTA Residential Real Estate Report

2010-01-19T10:29:00.001-05:00

This is the mid month report from TREB and shows that prices and sales are up considerably compared to the same period in 2009, Enjoy!

Mark

GTA REALTORS® REPORTING JANUARY MID-MONTH HOUSING STATISTICS

TORONTO, January 18, 2010 - Greater Toronto REALTORS® reported 1,749 existing home sales on the Multiple Listing Service (MLS®) during the first two weeks of January.

This result was almost double the 888 sales reported for the same period in 2009, when sales had dipped to a recessionary low.

“We have had a strong start to 2010,” said Toronto Real Estate Board President Tom Lebour.

“Widespread sales growth in terms of geography and housing type indicates that many households remain confident in their ability to purchase and pay for a home over the long-term.”

The average price for transactions in the first two weeks of January was $395,307, compared to an average of $332,495 for the same period in 2009.

“Double-digit average annual price growth will continue through the first quarter of 2010 as sales remain high relative to listings and we continue to make comparisons to last year’s

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 ?

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 2010 Calendar?

Single family residential overall sales numbers in Toronto Mississauga and GTA Real Estate Marketplace

2010-01-19T07:26:00.002-05:00

This graph shows the number of single family residential sales numbers overall in Toronto Mississauga and GTA Real Estate Marketplace for the entire 2009 year

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

Single family residential snapshot for sales in Toronto Mississauga and GTA Real Estate Marketplace

2010-01-18T07:24:00.002-05:00

Single family residential snapshot for sales in Toronto Mississauga and GTA Real Estate Marketplace
This graph shows you the percentage of each housing type that was sold last 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

Housing market indicators for real estate in Toronto Mississauga and GTA Real Estate Marketplace Marketplace

2010-01-17T07:07:00.002-05:00

Housing market indicators for real estate in Toronto Mississauga and GTA Real Estate Marketplace
Sales are up 115% for last month compared to same month in 2008
New listings are up slightly 6% compared to same month in 2008
Days on the market is down 40% for December 2009 compared to same month in 2008, indicating a very fast market!

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

Average single family residential real estate sales prices since 1999 in Toronto Mississauga and GTA Real Estate Marketplace

2010-01-16T07:47:00.003-05:00

This graph shows the average prices for single family residential real estate in Toronto Mississauga and GTA Real Estate Marketplace since 1999 and shows that there is a clear trend.
As the RBC states, past performance is not an indication of future trends... no kidding... but let's hope that this continues for some time to come!

Chart showing 2009 and 2009 average price per month for Toronto Mississauga and GTA Real Estate Marketplace

2010-01-15T07:09:00.003-05:00

This chart shows the average price for each month since January of 2008 and 2009 in Toronto Mississauga and GTA Real Estate Marketplace
Prices have increased year over year. you can see the fall in the prices in the fall of 2008 and then the rebound in 2009

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

Average and median average prices since 1997 in Toronto Mississauga and GTA Real Estate Marketplace

2010-01-14T07:23:00.002-05:00

This Chart shows the annual average and median prices since 1997 and shows that real estate is a good investment in Toronto Mississauga and GTA Real Estate Marketplace

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

Active Listings Down in Toronto Mississauga and GTA Real Estate Marketplace

2010-01-13T07:22:00.001-05:00

This graph shows that the number of active listings in Toronto Mississauga and GTA Real Estate Marketplace is down, this is part of the reason that the market is so fast right now. Anything that comes on the market is sold quite quick if it shows well and is priced right.

Predictions for Mississauga GTA Real Estate Marketplace in 2010

2010-01-11T07:24:00.000-05:00

Hi

So here we are again, at the end of another year, actually the end of a
decade and the beginning of a new year. Every year at this time we can look
back and reflect on what has happened in the past year with certainty. Also
at this time of year this is the time that we try and peer into the future
and predict what will happen with far less certainty. In real estate it's
very critical to try and predict the future because so much is relying on
it.

It takes quite a bit of time to condense my thoughts and observations into
this section of predictions for 2010. Part of the reason is that I want to
be as accurate as possible. As well, I know that many people will read this
page and rely on some of the predictions contained herein. Therefore, I
want to give as good advice as possible, advice that is realistic and yet
insightful.

Real estate is one of the few things in our lives that tends to increase in
value year after year after year. There is no certainty with this increase,
but it sure has seemed certain over the past 15 years. Our year over year
average single family residential price has increased every year since 1985,
except the fall of 2008, including this year. Don't believe me, see the
graph here:
http://www.mississauga4sale.com/TREBavg1995date.htm

There are some, many in fact that are predicting that we in the GTA and
especially BC are sitting at the peak and prices are about to crash. Garth
Turner is one person who is predicting that prices are almost guaranteed to
fall in 2010 I don't agree with him and don't feel that our area,
Mississauga and the GTA will fall in the next year.

What do we know with certainty for the future? We know the following is
almost guaranteed to happen in the Mississauga and GTA real estate
marketplace:

* Interest rates will increase in 2010, the Bank of Canada is
currently stating rates will increase in mid 2010 - this will put downward
pressure on prices after rates increase, but will cause many buyers to buy
before the rates increase and anticipation of the increase in rates
* there will be a shortage of listings for at least January and maybe
into February, this is a near certainty based upon the past 22 years for
January and early February, not many people list their homes at these times
- this will cause upward pressure on prices in the fist quarter of 2010
* HST will come into effect July 1, 2010 and this will increase the
cost when selling your home and to a lesser extent increase the cost to the
buyers, this will put slight downward pressure on prices

This is what we know with less certainty:

* the US real estate recovery seems to be happening
* the US and global economy will improve in 2010
* people may perceive that the HST will causes prices to increase once
it comes into effect and try to save some money before July 1st and this
could cause a mini boom in our market in the late spring of 2010

Due to the fall in late 2008, the average price in 2009 compared to 2008 is
up about 12%. We are up about the same percentage comparing 2007 to 2009
This is what I predicted in January for 2009
http://www.mississauga4sale.com/Toronto-GTA-Real-Estate-Market-Predictions-2
009.htm#2009 When I read the predictions I made back in January for 2009 it
makes me think that maybe I should go into the prediction business, more
than 3/4 of the things I predicted came true! I was wrong on Gold and wrong
on Gasoline prices, otherwise my predictions were quite close.

* These are my predictions for 2010 below and also online at this
link:
http://www.mississauga4sale.com/Toronto-GTA-Real-Estate-Market-Predictions-2
010.htm#2010
* I predict that our prices will increase about 4 to 6% in 2010 with
some softening in our market when the Bank of Canada increases rates in the
middle of 2010, once the Olympics end in the first quarter of 2010 and the
'dreaded' HST comes into affect July 1st of 2010
* Mortgage rates will increase beginning about July of this year, the
bank prime rate as of January 1, 2010 is 0.25% and I predict by year end it
will be at 1.00% to 1.50% This means that current mortgage interest rates
will increase by about 1.25% to 2% over what they currently are. This may
sound excessive, but I firmly believe that our economy will bustle this year
and increased rates will be necessary to calm things down a little, plus the
banks will want to gouge a little in light of increasing prime rates. They
often do this when rates are increasing as they can get away with it with
little backlash.
* I still believe you should go short term on your mortgage, read more
here about why I feel this way:
http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm
* We live in a very vibrant, growth oriented area of North America
with a very diverse economy and culture. People seem to want to work hard
and improve upon their personal and financial situation and almost everyone
I meet is employed and optimistic about the future. This is good for the
local economy and our future.
* No matter what happens, as long as you continue to work hard, save
10% of your gross income, watch what you spend, don't get into too much debt
that you can't handle it should you find yourself with a a job for a few
months, then you should be able to slowly and surely achieve financial
independence.
* The condo market will continue to surge, it's affordable and
desirable
* Bungalow style homes will become more desirable, (they currently are
very desirable), as our population age increases
* Barrel of oil will be $100 at end of year and gasoline will be $1.10
and gold will be $1100 per ounce at end of 2010
* Once again, beware the emotions of
<http://www.mississauga4sale.com/Market-Emotions-Cycle.htm> the marketplace
and stick to your long range goals , currently I believe we are in the
optimism/excitement phase so things may get really hot this spring in the
market.
* I still subscribe to all the values and principles that I've written
about in the past on this page below.
* I am a very optimistic person and always believe that I can do
better by reading and doing things every day that contributes to my long
term goals. I always set high but attainable goals and often come close to
reaching my goals and even if I fall short, I've surpassed what I have done
in the past. I subscribe to many newsletters that preach optimism and
growth and these help me stay sharp and continue to learn. Every day I seem
to learn something new, so at least I'm growing. You can read some of the
ideas that I subscribe to and believe at this page:
http://www.mississauga4sale.com/Motivation-Success-Ten-Scrolls.htm

That's about it for now, keep to your plan invest in real estate for the
long term, you cannot go wrong.

I wish you a very Happy New Year and all the best to you and your family in
2010
Mark