Housing Market Indicators in Mississauga and the GTA

This table below shows the average figures from the last month's statistics. It shows that the market has softened since a year ago.















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

Mississauga Real Estate Market and our collective Psyche - a snapshot

Good evening,

If you are like me, you are nervous about the state of the real estate market and financial markets here in Mississauga, the GTA and for that matter, all across Canada. This financial market meltdown has been prolonged and deep.

So where are we today in our marketplace. This is a short synopsis of my situation and provides a snapshot to look back upon in 3 to 6 months from now.

I looked at my rrsp's today and they have dropped about 20% since July of this year. Same thing goes for my resp for my children, probably 25% drop with those. My stocks have been free falling for about 3 months and the end seems nowhere in sight. What a ride we've been on for the past few months.

This financial meltdown caused by the financial 'crisis' in the US has now impacted our GTA market. This is not helping our local real estate market.

There are other factors that are affecting our local economy too. There is an upcoming federal election in a few weeks, finally an election in the US next month, (after what seems like about 2 years of campaigning) and uncertainly in many industries. The price of a barrel of oil has yo-yo'd between $100/ barrel to $135 and now back to about $105. The gasoline price at the pumps has also gone up and down like the roller coasters at Wonderland. And it seems like the price went up and stayed up much longer and higher compared to the shorter and lower regions.

All of the above would indicate that we too are heading for financial troubles here in the GTA. As any of you know, I am an eternal optimist, I think positively about every situation, try to look at the positive side of things in life, have a positive outlook on life and try to avoid reading the papers too much to reduce negative thoughts. With all of this said, even I have become a little skittish over the past couple of weeks.

I don't think that our GTA real estate marketplace will follow the lead of the US real estate meltdown. With that said, it does appear that our market has changed. I noticed this subtle change last fall in our market. The larger homes and more expensive properties were taking longer to sell last fall. Properties that are not 'staged' or near 'perfect' condition were selling in a week last fall, now they are taking a month or two, if they sell at all in our current market. Townhomes in Mississauga still seem to be selling like hotcakes. This may be because they are still quite affordable and appeal to a large segment of the market. Condos too are still selling well, in spite of nearly 500 condos for sale in the Square One area alone! In the W15 area which surrounds Square One, but south of the 403 there are 463 condos currently for sale. 463 condos is a great deal of properties. With that said, they too are selling well.

One of the beautiful things about turning 50 (and there are not many), which recently occurred in my life, is that for some reason you feel like you have earned the right to tell people how you feel because you have paid your dues. Now I know why 'old' people talk so much, they too feel they've earned the right to do so and I am no different!

The negativity in the press and the economy over the past 3 or 4 months is having a negative effect on our marketplace. As well, all of this negativity has also affected our psyche. When our psyche is affected, many of us stop spending and tighten our spending. This in turn slows down demand for all products and services and the problems increase.

We have problems in the manufacturing sector that have been ongoing for about 2 years. We see the effect of this directly on prices of small and large ticket items. See how the price of new vehicles has dropped and is now very close to the price in the US, unheard of 5 years ago. Our dollar was above par for some period of time in the last year, first time since the mid 70's but it back again to just below par, about 95 cents compared to the US dollar. Still close to par.

So where am I going with all this? Our Mississauga and GTA market may slow somewhat over the next couple of months due to the reasons above. our market is typically slow in late November and certainly December is our slowest month of the year. January can be a slow month in real estate depending upon the weather. So, with a slow October, we are looking at 3 or 4 months of slower than previous year 4th quarters.

I believe that once the US president is sworn into office in January the US economy will begin to improve, if only due to 'hope' Hope is everything in life and the US will be no different. Hope will affect our psyche. Once we have hope, we will begin to spend again which will in turn help the economy. People in the US feel it will be 5 years or longer to return to where they were 12 months ago.

All of this reminds of the graph that is shown on my site at http://www.mississauga4sale.com/Market-Emotions-Cycle.htm that shows the emotions of the market. It's a great graph and certainly we in Canada are between the two points of Fear and Desperation. Does this mean that we must continue on the downward slide into panic, despondency and depression? I hope that we can go from Fear and Desperation to Hope, but only time will tell.

We are in for an interesting ride over the next 3 to 6 months. Let's hope that we can reach "hope" and "relief" sooner rather than later.

I wish you all the best to you and your family.

Mark

The Toronto Main Event

You may have attended "The Main Event" back in 2007 and listened to some of the key speakers, namely Donald Trump, Anthony Robbins and others.

Unfortunately, I did not attend this event, but your musing summarizes this event beautifully. I had a few people contact me after this event and some did spend the nearly $1k on materials, but were happy to do so, go figure! As far as I know, none of them have purchased an investment property, to date!

Your comments on 'the Donald' make me want to go and see him next time he is in town, and I will go out of my way to listen to him if he is as straight as you say, that's my type of presenter.

I've seen Anthony Robbins at a training session here in Toronto before and he is awesome, he sure can energize a crowd.

Putting your ideas and plans into action that is most important, you have to have the desire and persistence to stay with your plan for the long term. This will absolutely guarantee you financial freedom in the long term. Nothing else can 'guarantee' you financial success.

I wish you All the best!
Mark

RBC's comments on Global Economic outlook

Global economy gears down

Evidence of a global economic slowdown continued to accumulate in the past month even as the U.S. economy grew at a much stronger-than-expected pace in the second quarter. Economic reports from the other countries we follow were not so bright, with the U.K. economy stalling and likely moving into the early stages of a recession, while Japan’s economy posted the sharpest decline in seven years and the Eurozone economy contracted after a stronger-than-expected first quarter.

New Zealand’s economy is headed toward recession with its monthly economic data pointing to another negative quarter, and Australia’s economy is eking out only subdued growth. Canada’s economy showed a mild improvement in the second quarter after an unexpected contraction in the first, but growth was still anaemic at 0.3%.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

RBC comments on Canadian and US interest rates

Interest rate forecasts for Canada and U.S. lowered slightly

We have rebenchmarked our interest rate forecasts for the remainder of 2008 while maintaining our calls that the Bank of Canada and the Fed will hold policy rates steady for the remainder of the year. We now see the yield on the two-year Canadian government bond ending the quarter at 3.10% and the 10-year yield at 3.75%, lower than our previous call for these yields to end the quarter at 3.50% and 3.90% respectively. The spate of weakerthan- expected data, which pushed yields well below July’s levels, made our earlier forecasts unlikely to be reached.

Similarly, we have reduced our forecasts for end of September two-year U.S .Treasuries to 2.55% (from 2.90%) and the 10-year Treasury yield to 4.05% from 4.30%.

Our year-end forecasts for Canadian two-year and 10-year bonds stand at 3.3% and 4%, respectively, with the two-year U.S. Treasury bond yield expected to finish the year at 2.65% and the 10-year at 4.40%.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Interesting Perspective on the Canadian Markets

Good morning,

A good friend of mine forwarded this article to me yesterday and I found that it was extremely enlighten, very honest and straightforward analysis of our markets.

It also gives you an alternative to the markets and real-estate, not sure if it's a good method, but at least you can have another alternative!

I hope you like it too!

Mark

In light of the recent events in the financial world and those which will unfold in the coming months I thought you might be interested in hearing about what I believe to be the larger risk.

Recovery Risk

In one of the most memorable movie scenes of all time Butch Cassidy and the Sundance Kid find themselves trapped on top of a very high cliff overlooking a raging river. With the posse closing in, their only possible escape is to jump off the cliff into the river. The Kid is visibly reluctant and when Butch asks him what his problem is, the Kid replies “I don’t know how to swim!”...Butch starts to laugh uproariously and exclaims “Kid, it’s the fall that’s gonna kill ya!”

Sometimes our immediate fears cause us to overlook the larger risk and that is the case for many with respect to the recent turmoil in the financial markets. While the losses are of concern, the larger risk can be in how long it takes to recover. So, in this case it’s not the fall but the length of time it stays down that is the larger risk.

This “Recovery Risk” is highly sensitive to just how close an investor is to retirement.

Retired: Significant to Catastrophic Risk – for those drawing income the depletion of their capital is critical and a lengthy recovery seriously increases the chance they will run out of money. The risk is highest in the early retirement years and decreases somewhat for older retirees – a function of the total income needed for the balance of their lifetimes.

Within 15 Years of Retirement: Significant Risk – for those counting on investment growth for future retirement income, a lengthy recovery may result in a later retirement than planned and/or continued work of some sort during retirement. Those closer to retirement are at greater risk as they will start to draw income sooner.

More than 15 Years from Retirement: Possible Risk – historically, most recoveries take less than 15 years so the younger an investor is the lower the risk. Those in their 20’s and 30’s benefit from a long term investment period while the risk increases progressively starting at age 40.

For some perspective let’s take a look at the Dow Jones Industrial Average:

First, note that the Great Depression starting in 1929 saw the Dow fall by more than 85%, a magnitude of loss not seen since. But it’s the fact that the Dow did not recover for 25 years that was the bigger issue.
As you can see on the chart there have been other lengthy recovery periods including the one we are presently in, which began in October 1999.
So, what are the alternatives? Putting money into a Money Market Fund, Savings Account or GIC just locks in the loss of purchasing power over time:
Investment Amount $100,000
Interest Earned 4.0% $4,000
Income Tax 33.0% -$1,320
Inflation (July 2008) 3.4% -$3,400
Net Earnings -0.7% -$720
This may be viable for some retirees but is questionable for those under age 75.
Real Estate is another possibility although after 13 consecutive years of rising values we may be looking at a downturn soon. Prices in the GTA rose by less than 1% in the past year and sales are down more than 22%. It took more than 12 years for the real estate market to recover after the peak in 1989.
For those who have retired there is a way to guarantee retirement income of 5% for life while remaining invested such that future market gains may be realized. In fact, it is possible to have both the initial guarantee and to improve upon the guarantee value through resets over time.
For those within 15 years of retirement there is a way to guarantee 5% annual increases in future retirement income while remaining invested such that future market gains may be realized. In fact, it is possible to have both the initial guarantee and to improve upon the guarantee value through resets over time.
The Income Plus program was introduced in Canada less than 2 years ago and in my opinion is the best way in which to minimize risk for those who are building or drawing retirement income.
If you, or someone you know, is within 15 years of retirement or, has been retired for 15 years or less, you should learn more about Income Plus. In this period of uncertainty, it offers both a guaranteed minimum amount of income and the potential to benefit from future market gains – a unique combination in my experience and one which may not be available with the same features in the future.
In my view this is the best protection available today with respect to many risks but especially for Recovery Risk.
*Income Plus offers a unique benefit for new clients:
For those not taking an income in 2008, a 5% income bonus is paid on the initial deposit. This means that if you open an account before the end of the year you will receive a 5% increase in your Guaranteed Withdrawal Balance even though you may only have been a client for a few weeks or months.

New clients over age 65 may take a 5% income withdrawal in 2008 without reducing the amount of their guaranteed annual income for life.

In order to realize these benefits I recommend you act quickly as it often takes several weeks or longer to transfer funds and this benefit only applies to those funds received prior to December 31st.

Plan to build a home or cottage?

I hope you enjoyed your Long Weekend!

The unofficial end to summer is here

Did you know................ I know people who can arrange construction financing for people like you who plan to build a home or cottage?

• Progress or Draw Mortgaging is the best way to finance a residential building project
• Unlike a standard mortgage, a Progress Mortgage is advanced in stages to fund the construction as it proceeds. Since the money is advanced as required, interest is only paid on the amount outstanding.
• Some great features:

- No set up, appraisal or inspection fees (most other lenders charge these fees);
- Client can use own solicitor;
- Free Mortgage Life Insurance during construction;
- Interest only payments during construction - interest at Prime plus 2%;
- Guaranteed mortgage rate offered at time construction financing is approved.

Please let me know if you have any questions regarding construction financing and I can put you in touch with lenders who specialize in this type of financing.

FYI: The next Bank of Canada rate announcement is scheduled for Wednesday Sept 3rd.

Mark

RE/MAX Reports Solid condominium performance bolstered by affordability in the first half of 2008

Solid condominium performance bolstered by affordability in the first half of 2008, says RE/MAX

Mississauga, ON (September 3, 2008) - Showing remarkable resilience in a complex real estate environment, sales of condominium apartments, town homes, and lofts moved ahead of 2007 levels in 30 per cent of districts examined in the GTA this year, according to RE/MAX Ontario-Atlantic Canada.


Condominiums proved to be as solid an investment as single-detached homes in 2008, with property values of both rising virtually across the board in the first half of the year. The average price of a condominium appreciated in close to 87 per cent (52/60) of Toronto Real Estate Board districts examined by RE/MAX -- with 20 per cent (12/60) reporting double-digit increases from January to June 2008, compared to one year ago. Willowdale, Lansing (C07) topped the list of best performers, with a 14.66 per cent increase in values, rising from $258,884 to $296,854. Thornhill (N02) placed second with a 13.3 per cent increase, bringing average price to $290,709.

Both Willowdale and Thornhill saw nominal increases in sales activity as well, rising 2.8 and 3.5 per cent respectively. The downtown core (C01), including King West, secured third spot with an 11.35 per cent increase in average price, bringing values in the area to $355,201 from $318,974 one year ago. Lawrence Park (C10) saw an 11.3 per cent increase in values, rising from $350,916 to $390,589, and a 5.7 per cent increase in unit sales, rising from 174 in first half of 2007 to 184 in 2008. Cabbagetown (C08) placed fifth with a 10.82 per cent increase in average price, rising from $301,224 to $333,818.

"Condominiums experienced upward momentum during the first six months of the year, despite an overall lag in the marketplace," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Their entry-level price point --between $200,000 and $300,000 for a small, one-bedroom unit downtown - clearly struck a cord with a broad range of purchasers. And while singles, empty nesters, and retirees, remain driving forces in the condominium market, a new demographic has emerged - young families. This active segment of the market is fuelling demand for town home developments throughout the central core."




For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Bank of Canada announces to hold the rates where they are, 3.0%

As expected, the Bank of Canada held interest rates at the same rate previous to today's announcement. The current BofC prime rate is 3.0%

OTTAWA — The Bank of Canada is keeping its key interest rate on hold, even though inflationary pressure has abated in Canada, and growth has slowed to a stop.
The central bank announced Wednesday that the overnight rate will remain at three per cent, and gave few hints about which direction its next move might be.
“The bank judges that the current level of the target for the overnight rate remains appropriately accommodative,” the bank said.
Economists had widely expected the bank to keep rates unchanged, although some had also expected the bank to suggest that its next move would be a rate cut in order to stimulate Canada's flagging economy.
The bank omitted its traditional assessment of the risks facing the bank's forecast – an assessment that is usually closely watched to determine whether the bank is leaning in the direction of future rate cuts or hikes.
Instead, the bank's one-page statement focused on the reversal in commodity prices since the beginning of July. Then, oil was trading above $140 (U.S.) a barrel, and has since declined steeply to close on Tuesday at $109.71 – driven lower by sagging global demand, the bank said.
The slide has meant that the central bank's earlier expectations that the inflation rate would soar to above four per cent by the end of this year will not pan out, the statement said, although the bank said it expects commodity prices to remain volatile because of tight inventories.
At the same time, lower oil prices have also meant that the Canadian dollar is much weaker than a couple of months ago. Normally, a weaker Canadian dollar would boost Canadian exports, but this time, it comes just as the world economy is losing steam, the bank noted.
“The weaker global growth and the decline of the Canadian dollar will have opposing effects on the demand for Canadian goods and services,” the bank stated.
The Canadian dollar closed at 93.58 cents (U.S.) on Tuesday, after trading just below parity for months.
The bank did not express any concern for Canada's stagnant economy, which contracted in the first quarter and barely expanded in the second quarter. Domestic demand has softened, but remains fairly strong, the bank said.
“Overall, the level of economic activity is slightly lower than expected in July but still close to the economy's production capacity.”
Total inflation, which has surged above three per cent recently, has been affected by temporary factors and should move back to the bank's two per cent target by this time next year, the bank said.
Still, the bank warned that the heightened inflation risk that gripped central bankers a couple of months ago and prompted the Bank of Canada to suddenly stop its aggressive rate cuts this summer still exists.
“Global inflationary pressures remain elevated, with potential implications for import prices and the dynamics of inflation in Canada,” the bank said.
Around the world, rising food and commodity prices have driven up inflation over the past few months, especially in emerging markets, but also in developed economies, albeit to a lesser extent.
In the United States, economic growth and the turbulence in global financial markets are unfolding as the bank expected, the statement said. The bank has projected 1.6 per cent growth in the United States this year, despite continuing turmoil in the financial sector and a collapse of the housing market.
Still, there's a risk that the negative feedback loop between the U.S. economy and tighter credit conditions will worsen, and hamper the expected revival of the U.S. economy in 2009, the bank suggested.
The Bank of Canada's next rate announcement is on Oct. 21 – a week after the widely-anticipated date of the federal election. With interest rates on hold, and the bank giving no obvious indication about its next move, Governor Mark Carney has likely removed himself as a factor in an election campaign that will no doubt be dominated by debate on how to manage the flagging economy.

See more about interest rates here:

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

Thanks

Mark

RBC reports on Ontario — A two-tiered economy

Ontario — A two-tiered economy

The first-quarter national accounts for Canada provided quite possibly the first
"hard" evidence that a downbeat scenario is, indeed, unfolding in Ontario. The
unexpected decline in Canadian real GDP most likely captured a sizeable economic
contraction in Ontario with the international trade sector delivering much
of the bad news.

Early this year, Ontario's exports were pounded by the high
Canadian dollar and the downturn in the U.S. economy, as well as by a strike at
a major U.S. motor vehicle parts manufacturer that disrupted Ontario's auto
production. Poor weather conditions also caused some disruptions.
Going forward, the spotlight will remain on the external sector. With the high
dollar and sluggish U.S. economy still hindering manufacturing sales abroad,
net trade should continue to subtract from growth in the near-term, although the
impact is likely to taper off gradually as some of the factors that restrained firstquarter
growth prove to be temporary.

Little improvement is expected in the allimportant
auto sector – plummeting motor vehicle sales (particularly of light
trucks) in the United States and ongoing restructuring in the "Big 3" North
American producers imply continued hard times. Excluding this sector, however,
Ontario exporters should feel some relief later this year and in 2009 from a
projected easing in the Canadian dollar and reacceleration of growth in the U.S.
economy.

As tough as conditions are on the external side, the story on the domestic
economy is more encouraging. Construction is holding up better than expected
and growth in consumer spending continues to be supported by a still-robust
labour market.

Despite the carnage in manufacturing jobs, total employment in
the province is still growing at a decent clip, enough to keep the unemployment
rate near a seven-year low. While the risk of the external weakness spilling over
into the domestic side is not trivial, the domestic underpinnings remain relatively
solid and should allow the overall economy to navigate through the headwinds,
keeping growth in positive territory.

Nonetheless, at 0.7% this year, our
forecasted growth rate would be the weakest since the last recession in the early
1990s.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

RBC comments on Canadian Housing market losing its edge but not headed for a crash

Housing market losing its edge but not headed for a crash

Canada's resale housing market showed signs of slowing early in the second
quarter with sales off 1% from the first quarter of 2008 following three consecutive
quarterly declines. However, sales continue to run well above the average
pace of the past 20 years. While strong demand boosted prices, with gains of at
least 10% in the past six years, the pace slowed to 3.2% in April.

In contrast, new listings picked up in the first quarter and this trend continued into April, with
listings in the major markets up 17.7% compared to a year earlier. Slowing in the
housing market was expected and, to some degree, desired because affordability
had been increasingly strained through 2007, with most major markets seeing
affordability deteriorate to its worst levels since the early 1990s.

On the supply
side, the high level of demand continues to support construction activity with
housing starts running at an historically fast rate. The structural backdrop to
Canada's housing market remains solid, with very limited sub-prime mortgage
activity, a relatively small speculative sector and no significant supply overhang
despite robust construction activity.

Affordability is also forecast to improve
this year, with the Bank of Canada having cut the overnight rate by 150 basis
points since last December, mortgage rate spreads showing some signs of narrowing
and the pace of house price gains slowing.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Market slow down or stabilization?

Hello,

I hope you are enjoying your summer and have taken time for vacation and relaxation.


Let me ask you this. Is the market slowing down? Or is it just stabilizing? 2007 was a record year for home sales in Canada with 520,192 sales through MLS. We really can't get spoiled and expect it to always be increasing at the same rate. So what is expected for 2008? The expected number of sales through MLS for 2008 is 476,000 units representing a decrease of 8.5% from 2007. In 2009, that number is expected to drop another 2.3% to 465,000 units.

The fact is, the economic fundamentals in Canada remain strong. We have a very high employment rate, rising incomes as a whole, and low mortgage rates. This represents a strong foundation for a solid housing market. Now, this is expected to trend downwards slightly over the next year and a half, but it is no where near as bad as some people make it out to be.

Overall, the market is still relatively healthy. The average price of resale homes grew by 11% in 2007 and is expected to grow another 5.5% in 2008 and 3.3% in 2009, keeping the average MLS sale above the inflation rate. While the growth is slowing as the market stabilizes, it is important to keep in mind that it is STILL GROWING and DEMAND IS STILL STRONG by historical standards. Mortgage interest rates are expected to stay low through the end of 2009 with possible increase of only 25 to 50 basis points (1/4 to 1/2%) by the end of next year.

The reasons for the stabilization are of course, tied to the US market, as well as increasing carrying costs due to home inflation. I am not going to say that the market or economy isn't slowing. It is. It is unrealistic to think that it will always stay at the same pace.

Our economic growth is expected to slow to 1.8% in 2008, pick up to 2.3% in 2009 and by 2010 we are expected to be at 3.3%. Income levels are still increasing nicely, migration is still very strong and overall consumer confidence is still high as a whole, all fueling a strong market.


Source for the above numbers: CMHC and Bank of Canada.

On another note, The Bank of Canada had their rate meetings today and there has been no change to the prime rate. Their next meeting is September 3rd. Today's low 5 year fixed rate remains at 5.45% and the variable at 4.15% (with teaser variable rates available as low as 2.24%).


Please let me know if I may be able to help you with anything to do with real estate,
Mark

Trends in Seniors Housing

Current and Future Trends in Seniors Housing are –

i. A landowner who wants to know what to develop

ii. A developer who wants to hear his choices in the Over 50s Market

iii. An Architect who needs to know what the Boomer Market is buying

iv. An existing Aged Care Housing provider who wonders if there are any economic opportunities beyond the running of a Nursing Home

This is a growth sector that requires much more attention and focus

- There are dozens of market niches in Housing for the Over 50s

- How can we assist with enthusiasm and renewed passion for developing Over 50s Housing.

Seniors Housing, discoursing on trends and weaving the knowledge into your dilemmas, conundrums and land development opportunities.

Analyze the Seniors Housing Sector - giving some shape to the new future of Over 50s Housing in Canada.

Who can benefit by observing trends in seniors housing? Builders, developers, financiers, architects, owners, seniors housing executives who are either, contemplating entering the over 50s housing sector and long standing industry players who need an outside view to freshen up thinking, perspective or re-evaluate industry positioning.

I will be providing detailed analysis of the 100 sub-trends in 50s independent housing, as well as the sub-trends in semi-dependant housing and the future of nursing homes, socio-economic trends, social impacts, financing techniques and an overview of best practice developers, finders, managers and operators as well as a review of design, architecture, construction and business models.

Check back in the future for more content.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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RBC thinks that the US Federal Reserve to keep rates low in first half of 2009

RBC thinks that the US Federal Reserve to keep rates low in first half of 2009 and initiate process to return to neutral in the second half

Our forecast calls for the U.S. economy to grow at a lacklustre rate in the first quarter of 2009, gain some traction about mid-year as financial market volatility eases and the cost of capital moderates and then expand at a sub-potential pace for several quarters, meaning that the U.S. output gap will widen and relieve some of the upward pressure on prices.

However, core inflation is likely to remain at about 2% next year. With the economy reaccelerating and the financial system mending, the Fed will begin to remove some monetary stimulus. We expect the Fed funds rate to rise to 2.5% by the end of 2009, with the first increase likely to come in the summer. We believe that the yield on the two-year bond will end 2009 at 3.25%, considerably lower than our previous forecast of 4.15%, with the 10-year rate forecast at 4.75% (from 5.1% previously).

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Mark

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

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

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RBC reports that markets have changed across country

Tide turns in 2008

Last year, major markets delivered a sixth consecutive year of 10% house price gains, sales-to-listings ratios held firmly in seller’s

territory, and housing starts held above 220,000 units for a fourth year running as excess demand in the resale market spilled over into

the new home market. But, housing markets are now on a clear cooling path.

Calgary and Edmonton have moved from chart-toppers to bottom-of-the heap in only a matter of months on a range of key housing

market indicators, including house prices and sales.

Regina and Saskatoon continue to clock year-over-year price gains that are several multiples above the pace of their local wage

growth. This lends evidence that current momentum is unsustainable,. with a similar fate to Alberta’s likely for both of these cities in a

year’s time.

Many of the middle-of-the-pack markets — like Toronto, Ottawa and Montreal — are maintaining their slow and steady cruising

speed. House prices across much of central and eastern C