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

Friday, March 28, 2008

Foreclosure Market Report - 2,203,295 foreclosure filings how can you find them?

On January 29th 2008, RealtyTrac®, the #1 online authority for foreclosures & defaulted properties, released their 2007 U.S. Foreclosure Market Report.

In their report, they mention that the 2007 foreclosures are up 75% over 2006 with a total of 2,203,295 foreclosure filings. The report also shows that more than 1 percent of all U.S. households were in some stage of foreclosure during the year, up from 0.58 percent in 2006.

Why, as a real estate buyer, should you care about foreclosures? Opportunity!

Up until now, there were very few methods of finding a foreclosure or Power of Sale (or defaulted property) in Ontario.

I tend to think a little differently than the average Real Estate Agent, which is probably why you remain part of my sphere of influence. For Power of Sale listings and foreclosures, I have created a very detailed section of my website to explain how properties end up in Power of Sale and what it means to you and how you can capitalize on buying these power of sale properties.

Read my power of sale section.

Every great adversity of the homeowner in Power of Sale brings with it a great opportunity to any buyer like you who knows where to find these properties and how to purchase them.

How?

Well, let me explain a little further...

With my POS newsletter, that alert will come to you 5 days per week showing you all the details of these power of sale properties, including the address and asking price! How can you lose?

If you are interested in receiving emails showing these new Power of Sale properties, please sign up to my POS newsletter here.

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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

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Tuesday, March 18, 2008

Canadian Housing Market Update


Canadian Housing Market Update?

The Canadian housing market continues to lose momentum after a prolonged show of strength. Today's February existing home sales data from the Canadian Real Estate Association show that resale activity fell 6.4% from the prior month and 9.6% from a year ago. While this year's wicked winter weather has no doubt played a role, the 8.9% y/y drop in sales in the first two months of 2008 is a big turnaround from last year's 7.6% rise in overall sales.


As Canadian sales have lost steam, we are finally seeing some signs of cooler price gains as well: Average home prices were up 5.3% from year-ago levels in February, less than half of last year's average increase of 11%, and one of the smallest gains since the boom got rolling in 2002. The yearly price rise is still skewed by the mammoth 55% and 41% jumps in Regina and Saskatoon (respectively), although 7 cities reported double-digit gains last month.

The previously steaming hot Alberta markets are fully back down to room temperature, and continue to drag heavily on the overall sales figures. Sales in Calgary (-35.4% y/y) and Edmonton (-31.8% y/y) fell steeply from a year ago, while new listings continue to rise sharply. That's a nasty omen for the local markets, and both have seen price increases dip to around the 5% range.


The Bottom Line: With the further slide in February, Canadian home sales are now firmly below year-ago levels, another sign that the Great White North's housing boom is grinding to a finish. Dismal weather (unless you're a polar bear) may have exaggerated the weakness in the opening months of the year, but there are more durable factors to suggest that the bloom is off the boom. Sagging affordability and the likelihood of increased consumer caution point to calmer housing market conditions through the rest of 2008.


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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


Homes for Sale

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Monday, March 17, 2008

Bank of Canada to cut by another 50 bps in April so thinks TD/CT

Insights and highlights from TD/CT

U.S. weakness takes bite out of Canadian growth and Bank of Canada to cut by another 50 bps in April

Canada cannot escape the fallout from the U.S. economic slump was the message that rang loudly in the Bank of Canada's decision to pull the trigger on a 50 basis point cut to its overnight rate on Tuesday. In fact, in light of the increasingly "dovish" tone in the communiqué that accompanied the rate move and this week's spate of soft economic data, another rate cut in April appears a very good bet. The only question is: how much? Despite today's unexpectedly robust job report, the risks still are tilted towards another bold half-point reduction by the central bank, taking the overnight rate down to 3.00%.


Canadian growth prospects waning

This week's economic news highlighted the growing dent being placed on Canada's growth prospects from softening U.S. demand. A whopping 8.5% drop in exports was the key culprit dragging down Canadian real GDP growth to a six-year low of 0.8% (annualized) in the fourth quarter from 3% in the prior period. Offsetting the export plunge was a surge in domestic spending (+7%), spearheaded by the consumer. So, while the bite of weakening manufacturing exports to the United States is becoming more evident, domestic resilience continues to drive overall expansion – some good news there.

These trends were echoed in this morning's employment numbers – in spades! More than 40,000 net new jobs were created in Canada in February on the heels of an equally impressive gain in January and leaving the jobless rate at a 33-year low of 5.8%. Some 24,000 jobs in the export-heavy manufacturing sector were lost in the month, bringing the total losses since November to 50,000. Yet, service sector job creation powered ahead by 56,000 positions, with increases spread across public and private sectors. On a year-over-year basis, jobs in the public sector have increased at three times the pace (+6.6%) of the overall economy (+2.2%).

The blockbuster employment increase raises the question how much longer the job market can remain "decoupled" from the production side (i.e., GDP). Historical experience in Canada would argue that this divergence won't last very long. As export output and employment remain under significant pressure – which as we discuss below is very likely – there will be increasing knock-on effects to construction and services, and employment will ultimately follow suit. Governments will also respond to slower revenue growth by softening the pace of new hiring. In the meantime, the robust job market conditions continue to mitigate the risk of recession in Canada.

U.S. problems continue

With the U.S. problems leaving an increasing footprint on the Canadian landscape, this week's U.S. indicators did not provide much comfort. After being served up earlier this week with news that housing foreclosures jumped to a new high in the fourth quarter, investors received word that households are facing a rapidly-eroding employment picture. Non-farm payrolls dropped by 63,000 positions in February, chalking up the second straight monthly loss. Other indicators weren't much more heartwarming. The ISM survey of manufacturing activity slipped below 50 – the growth-contraction threshold – for the second time in the three months. On a brighter note, the export sub-index remained well above 50, indicating that a weak U.S. dollar continues to provide a boost to economic growth. The ISM non-manufacturing index rose from its depressed level of 44.6 in December, but at 49.3, remained slightly below 50.

It is the export sector – along with the stimulus from the Bush plan and Fed rate cuts – that will continue to provide key offsets to the headwinds brewing on other fronts going forward. At the same time, however, commodity prices, and notably crude oil (which rose to a new record of U$105 on Thursday) continue to rise on the back of U.S. dollar weakness. And with these elevated prices representing a tax on many U.S. consumers and businesses as well as raising inflation fears, some of the growth benefits of the currency-related weakness be increasingly eroded. In addition, the Fed will have less room to lower interest rates than otherwise would be case. Lastly, as we discuss in special report this week entitled U.S. Homeowners Not Getting Much of a Break on Mortgage Rates, the power of central banks to boost growth by rate cuts is lessened significantly when credit markets are in distress. Despite 225 basis points in Fed rate cuts, U.S. mortgage rates have barely budged.

Bank of Canada likely to go 50 again

Putting it all together, while the brisk job growth will not be lost on the Bank of Canada, we still feel that another aggressive half-point rate cut will be in the offing at the central bank's next fixed announcement date in April. By then, it will remain clear that the U.S. problems are not getting better, that the slowdown in Canada continues to broaden to the services side, and that Canada's overall economy will be hard pressed to record growth in the first quarter. Soft core inflation trends also provide credence to our call. Lastly – and importantly – we assume that the March reading on employment will better reflect the softening underlying momentum in the Canadian economy.

TD Economics releases Global Markets

This week, TD Economic released its latest installment of Global Markets, which presents quarterly forecasts for North American bond yields and international currencies. Despite the string of soft U.S. news, we still feel that too much pessimism has been priced into U.S. government debt markets, with yields likely to head moderately higher from current ultra-low levels and for the overall curve to flatten over the remaining three quarters. Canadian yields are also forecast to rise, albeit to a much lesser extent. Another key takeaway is that the US greenback will eventually find a bottom, likely by mid-year, although low U.S. rates will limit the extent of the bounce. In contrast, the Canadian dollar is likely to gravitate towards 95 US cents by year end.

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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

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Friday, March 14, 2008

RBC report on Toronto GTA housing affordability



RBC report on Toronto GTA housing affordability


Toronto - more moderation in 2008


Affordability across Toronto deteriorated modestly for bungalows and townhomes and stabilized for condos and two-storeys. An overall improving affordability trend is expected in 2008 as new home and resale markets cool off amidst an increasingly lower mortgage rate environment. It is difficult to speak of the Toronto market without drilling into the different pockets of strength within the
city.


The core Toronto area remains tight and continues to bias the headline numbers up. Outside of the core, several other sub-regions will see a continued moderation in average house price growth in 2008.


To date, the condo market has proved quite resilient with house prices still growing at a 10% year-over year pace. However, a sizeable increase in supply coming to market over the next two years is expected to shave some of the excitement off price growth.



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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


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Thursday, March 13, 2008

Is the US Economy In or out of recession?

This is the RBC viewpoint on whether the U.S. economy is in or out of recession?

The pace of U.S. economic growth is expected to remain lacklustre in the near-term as the impact of the recent increase in the cost of borrowing weakens business activity; the housing market recession rolls on; and even the indefatigable U.S. consumer pares back spending on worries about the labour market, eroding net wealth, rising borrowing costs and more restrictive access to credit. Modest support will come from the trade sector — export growth is forecast to outpace imports as the past weakening in the U.S. dollar supports foreign demand for U.S.-made goods and lessens U.S. demand for foreign-made products.

Whether the economy falters is only important if the decline is deep and prolonged.

We believe that the third-quarter outlook is brighter because the large fiscal stimulus package passed earlier this year is likely to revive consumer spending activity.

We are assuming that about one-half of the more than $100 billion in tax rebates given to U.S. households will be spent mainly in the third quarter, boosting the annualized quarterly consumption growth rate by two percentage points and adding about 0.3 percentage points to 2008 GDP growth. This revival in consumer spending is expected to stem the weakening in the U.S. labour market. At the same time, the lagged effect of the Fed's aggressive easing campaign and more stable financial market conditions will shore up household balance sheets, setting the stage for stronger growth in 2009.

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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

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Friday, February 29, 2008

Market update Canadian Home Building

Multiples Prop Up Canadian Home Building
The Canadian home building sector warmed up again in January from a winter chill that slowed activity in December. Builders kicked off the New Year by pouring the foundations for 222,700 new housing units (annualized rate), an above-expected level and close to the average over the past year.

However, key details of the report raised some questions, as the entire monthly increase came from the typically volatile multi-unit segment (up 64%). Single-unit starts actually fell 4.8% to their lowest level in more than six years. While this likely reflects an ongoing shift towards multiples in the face of growing land constraints in densely populated areas of the country, it is bound to make starts quite bumpy going forward.

Regionally, gains were registered in Central and Western Canada in January. All provinces in Atlantic Canada posted declines.

The Bottom Line: Combined with strong employment numbers released earlier this morning, this report suggests that economic activity picked up in January after a short end-of-year break in Canada. Even so, housing construction is expected to slow moderately during 2008, which will restrain growth in coming quarters.

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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

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Tuesday, February 26, 2008

Downtown Toronto Taxes are highest in Country!

Downtown Toronto Taxes are highest in Country!

Even before Toronto announced its latest property tax hikes yesterday, Toronto took the dubious honour for having the highest property taxes in Canada, according to a detailed report issued by the city of Edmonton. Together with Ottawa, Brampton, Hamilton and London, Ontario municipalities take five of the top six spots on the list. This is something most homeowners in these cities know intuitively every time they pay their tax bill. Now they have it confirmed by an objective report that compared more than 30 municipalities across Canada.

Toronto ranked first with the highest taxes paid at $3,912, followed by Brampton at $3,826. Ottawa was third at $3,532; Hamilton and London were fifth and sixth at $3,305 and $3,078 respectively. St. John's, Newfoundland, deserves credit for taking last place with the lowest average tax at $1,540, and Surrey, BC was second last at $1,814.

This sad but helpful property tax news is timely as city councils across Ontario prepare their budgets. As well, Premier McGuinty's freeze on assessments for homes expired at the beginning of 2008. Not only will tax rates be going up, but for the first time in a few years homeowners will take a second hit if their home value reassessment shows an increase above the average increase. Assessment changes will take effect for 2009 property tax rates.

What is especially helpful about the Edmonton report is that it compares property taxes in a dollar value instead of as a percentage. Some mayors, like Toronto's Mayor Miller, try to defend high property taxes by hiding behind what appears to be a lower rate than other cities. This is hiding because the average value of a home is high in Toronto so the total taxes paid for a Toronto homeowner are higher. When paying taxes one cares less about the rate paid or the details of the complicated formula used. Instead, one cares about how much money is being taken year over year. That is the only comparison relevant to a taxpayer, not whether the rate is 0.82 in one city versus 1.15 in another city.

The main reason for high and growing property taxes in Ontario is that municipal spending is out of control. Municipalities have a spending problem, not a revenue problem. While mayors continue to clamour for more and more money from many sources, their appetites for spending grow unchecked.

Data from Statistics Canada shows that municipal revenue across Ontario has been running at three times the rate of inflation. In 2006 municipal revenue was up 6.3% while inflation was only at 2.0%; in 2005 revenue was up 7.2% and inflation was only 2.2%. Despite Ontario municipal revenues ballooning from higher taxes, more transfers from other levels of government, higher user fees and new taxes in Toronto; mayors continue to complain that they don't have enough.

It is interesting how mayors can work together cooperatively when it comes to demanding transfers from other levels of government or getting new taxing authority from the province. If that same energy were transferred to creating efficiencies and reducing costs, the report out of Edmonton might show a different -and welcome -conclusion.

Read more about prices http://www.mississauga4sale.com/TREBprice.htm

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

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
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FAX 905-828-2829 ÈCELL 416-520-1577
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Friday, February 22, 2008

REMAX reporting Canadian residential real estate market gains in last 10 years

Residential real estate markets across Canada post solid gains over past decade, says RE/MAX


Pent-up demand, population growth, tight nventory levels,
and the longest economic expansion since World War II
collectively fueled one of the best decades on record
for residential real estate in Canada, according to a
report released today by RE/MAX.
RE/MAX Decade in Review 1997 - 2007 found that major housing
centres across the country experienced strong consecutive
growth between 1997 and 2007. Average price spiraled
upward while unit sales climbed in tandem as more and
more Canadians bought into homeownership.
Nationally, average price almost doubled in the 10-year period, rising from $154,606 in 1997 to $307,265 in 2007, for a 7.1 per cent annually compounded rate of return.


Home sales across the country increased just over 57 per cent from 331,092 units in 1997 to more than half a million sales last year. Edmonton led the country in terms of percentage increase in average price. The city saw a 203 per cent upswing in housing values - or an 11.7 per cent increase annually - with average price rising from $111,587 a decade ago to $338,636 in 2007.

Prince Edward Island experienced the highest percentage increase in unit sales, with the number of homes sold up 119 per cent in the 10-year period. "Immigration and in-migration have played a serious role in jumpstarting residential housing markets, particularly in British Columbia, Alberta, and to some extent, Saskatchewan over the past decade," says Elton Ash, Executive Regional Vice President, RE/MAX of Western Canada. "At first, there was an influx of

American buyers, especially in Canada's coastal regions and recreational hot spots, as our southern neighbours took advantage of the almighty US greenback.

Then the European and Middle Eastern purchasers flooded the market, buying up real estate considered 'cheap' by international standards. In recent years, there have been a growing number of purchasers from Mainland China. From a global perspective, there's no question that Canadian real estate brings good value to the table."

Percentage increases in home sales varied across the country, with Prince Edward Island experiencing the greatest upswing over the past decade, followed by St. John's at 106 per cent, Kelowna at 84 per cent, and Saint John at 77 per cent. Most markets (12 of the 19 surveyed) reported increases between 40 and 60 per cent. Average price has also seen substantial escalation over the 10-year period, with posted gains ranging from a low of 54.4 per cent in London-St.Thomas to a high of 203 per cent in Edmonton. Appreciation in Western Canadian markets surpassed all others between 1997 and 2007, with Calgary ranking second in terms of price appreciation at 189 per cent, Kelowna at 179 per cent, Saskatoon at 137 per cent, Winnipeg at 118 per cent, Victoria at 114 per cent and Greater Vancouver at 99 per cent.

In 2006, homeownership rates in the country were the highest on record at 68.4 per cent. Population growth has contributed to heated market conditions - especially in Calgary (+31.4 per cent), Edmonton (+20 per cent), Toronto (+20 per cent), and Vancouver (+15 per cent) where percentage increases have hovered in the double-digit range. Overall, Canada's population rose to almost 33 million in the 2006 census, up approximately 10 per cent from 1996 figures.
"The non-cyclical nature of the decade comes as some surprise," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "Never before have we seen such a continuous run up in Canadian real estate.

Clearly, strength in all markets has been directly linked to solid growth in local, provincial and national economies. Low interest rates, job security, and consumer confidence have all served to further bolster home-buying activity across the nation."

Robust economic performance in Western Canada has also drawn job seekers from across the country, looking to capitalize on employment opportunities. As demand for housing increased across the country, the supply of homes listed for sale began to contract. Multiple offers were commonplace in many areas, some with sales-to-listings ratios as tight as 80 to 90 per cent.

Nationally, 1997 marked the first year since 1988 that the sales-to-listings ratio hit 50 per cent. The sales-to-listings ratio would remain above 60 per cent from 2001 onward - rising to as high as 68 per cent in 2002.

The decade was not without its obstacles - the high-tech meltdown, a US recession, 9/11, SARS, Mad Cow, a blackout that affected the entire Northeastern seaboard, natural disasters such as ice storms, hurricanes, and forest fires and more recently, the credit crunch south of the border.

Given the continuation of sound economic fundamentals, it's expected that residential real estate markets across the country will continue to experience healthy activity, albeit at a more moderate pace.

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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

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Thursday, February 21, 2008

Canada's Housing Market Outlook for 2008

Canada's Housing Market

"What remains the greatest source of weakness in today's U.S. economy is a continued source of strength in Canada," says Warren Lovely of CIBC World Markets in a recent report. "While the U.S. housing market is mired in deep recession, Canada's own housing market has demonstrated extraordinary resilience."

This week the Canadian Real Estate Association (CREA) predicted that national home sales will rise to 8.1 per cent in 2007, setting an all-time sales record. Prices are also expected to go up by a whopping 10.4 per cent in 2007, with another 5.5 per cent increase in 2008.

"Resale housing activity was a juggernaut in the second quarter of 2007," says CREA's chief economist Gregory Klump. "Record breaking sales activity in the first and second quarters forced CREA to revise its forecast upward."

Although you'd expect the trade association to produce a rosy forecast, it's not much different that the latest prediction from the country's federal housing agency, Canada Mortgage and Housing Corp. (CMHC). It's also expecting a new sales record in 2007, an increase of 6.5 per cent compared to 2006. CMHC says prices will increase by 9.9 per cent this year and 5.2 per cent in 2008.

Why is the Canadian housing market still so strong? The economic fundamentals that have carried this housing boom for several years continue to be in place. They include record-high employment rates, rising incomes and strong consumer confidence.

In addition Subprime Mortgage Crisis Not Likely to Spread to Canada and Canadians do not have the same exposure in the subprime mortgage market that has come back to haunt U.S. home buyers.

However, the recent shocks to the stock market may change the Bank of Canada's plans to hike interest rates again in the near future. CMHC says that one, three and five-year posted mortgage rates will be in the 6 to 7, 6.25 to 7.25, and 6.50 to 7.50 per cent ranges respectively for the rest of this year and in 2008.

In analyzing CREA's sales figures for July, Porter says that 17 of the 25 reporting cities posted double-digit sales gains compared to last year. "All cities west of Lake Superior reported double-digit price increases last month, led by the 53.7 per cent sprint in Saskatoon," he says. "However, the price surge is not confined to Western Canada, as Hamilton, Sudbury and Quebec City have also posted double-digit increases. Meanwhile, the previously white-hot Alberta markets are showing some signs of simmering down. Sales in both Calgary
and Edmonton fell, while inventories climbed last month. In particular, while average prices in Edmonton are still up a whopping 38 per cent year-to -year, sales fell 21 per cent and new listings almost doubled. That combination points to a market headed for a correction."

Prices are forecast to increase by 17.4 per cent in Saskatchewan, 11.2 per cent in Manitoba, 9.9 per cent in B.C., 9.2 per cent in Nova Scotia, and 8.6 per cent in Ontario this year.

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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

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Wednesday, February 20, 2008

More signals that our real estate market is cooling a little

Toronto Real Estate Board (TREB) Average Prices and Graph

The Canadian Home Sales are not as strong as they were in January of 2007l

The Canadian housing market continues to gradually lose steam after a prolonged show of strength. Today's January existing home sales data from the Canadian Real Estate Association show that resale activity faded 0.4% from the prior monthwhich was already somewhat on the softer side of recent trendsand sales were down 8% from a year ago as well. That's a massive turnaround from last year's 7.6% rise in overall sales.

The lousy weather may have played a small role in restraining sales last month, although it's not as if January is typically a treat on that front. As Canadian sales have lost a bit of momentum recently, we may finally be seeing some signs of cooler price gains as well: Average home prices were up 8.6% from year-ago levels in January, compared with an average increase of 11% for all of last year.

The yearly price rise is somewhat skewed by the mammoth 69% and 37% jumps in Regina and Saskatoon (respectively), although at least 12 cities reported double-digit gains last month.

The previously steaming hot Alberta markets continue to cool considerably, and are now acting as a significant drag on the overall sales figures. Sales in Calgary (-30.9% y/y) and Edmonton (-21.0% y/y) fell steeply from a year ago, while new listings continue to rise sharply. That's not a favourable backdrop for prices, and both have seen price increases dip into single-digit terrain.

The Bottom Line: With the further dip in January, Canadian home sales are now well below year-ago levels, adding further evidence that the great boom is winding down. Sagging affordability appears to have finally dug into activity, most notably in Alberta.

Still, prices across most of the country remain well above year-ago levels and most markets are well balanced, so we're not looking at serious strains in the housing market. Modest interest rate relief will also provide a helping hand.

see Graph of Average GTA prices

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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

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Friday, February 15, 2008

Should you buy a High-rise Condominium Or Detached Home? Which one Is Right and the Best For You?

Should you buy a High-rise Condominium Or Detached Home? Which one Is Right and the Best For You?


The Toronto, Mississauga and GTA condominium market is flourishing, with modern towers and low mortgage rates luring would-be home buyers with the possibility of building equity at rent-like prices.

Due to the advantages of home ownership compared to renting your property, many people like you will soon be reaching a point where you want to buy a detached home. However, you may not be sure whether you should actually buy a house or if you should look in to buying a condo instead. This is especially true for younger home buyers who might want the benefits of living in the more communal situation of the condo.

Thus, you have a decision to make. Should you purchase a condo or go for a more traditional detached home or semi or townhouse? You should consider many factors such as your lifestyle and then consider the pros and cons of each choice before deciding which to buy.

Of course you decision is not life long as you can always sell the property and switch, but it's best to consider some major factors before diving into your purchase!

You may wish to purchase a detached home, semi or townhouse when the following items hold true:

You don't mind the occasional maintenance item and actually enjoy spending time and money and investing into your home
You currently have or plan to have a large family.
You are a very private person who does not like living close to your neighbours or having your home choices regulated by an association.
You are investing in home ownership primarily for the purpose of resale of the home in the future (since property values are usually higher than condo values).
You are seeking to purchase a large home and / or you need outdoor grounds areas for things like large pets.
You enjoy maintaining your own yard or garden.
You may live in a rural area or in a location where there are not many condos on the market.



A high-rise condominium may be the better choice for you if:
You are a single individual or a couple or an empty nester that is looking for a small home rather than a large property.
You don't have a lot of money to spend but still want to invest in home ownership.
You are interested in being part of a small community living in the same building or complex.
You are comfortable living in close proximity to your neighbours.
You don't mind having certain aspects of your property ownership regulated by a group of elected people who form the condo association
You live in an urban area where condos are very common, affordable and gives you much choice
You run a busy lifestyle and prefer to enjoy amenities like a pool or a shaded grounds area but aren't able to maintain such amenities yourself either because of the time that it takes or the cost.


A high-rise condominium may be best for single individuals or couples who have neither the money to invest in a house nor the time to maintain the upkeep of the larger home. These tend to be young people enjoy the benefits of apartment style living in close quarters with their neighbours, who are comfortable having some regulation by the home owner's association and who enjoy sharing common areas with others. Often, condo buyers are first time home buyers. If, in contrast, you are an older adult who has (or may soon have) a family and would like the freedom and privacy of a home with its own property, then a house is probably the right choice for you."

There are many items to consider when choosing between a high-rise condo and home purchase. Regardless of whether you buy a house or a high-rise condo, it's important to do your research and consider the future of the neighbourhood you're buying into. Whether it's a condo or home, the old saying of "location, location, location" remains true for either choice. Either choice is a significant investment for you and you need to find a vibrant and safe neighbourhood that will ensure a good return on your real estate purchase and investment into the future.

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Mark

A. Mark Argentino
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Monday, February 04, 2008

Condo prices on the rise in Toronto and GTA

Condo Prices outpace Detached homes in parts of the GTA in 2007

For the first time, the average price of a condominium in some GTA districts last year rose at a higher rate than single-detached houses.


In the GTA's central core district, the average condo price in 2007 jumped by 12.2 per cent (to $327,559 from $292,064), according to Re/Max Ontario-Atlantic Canada. In the same year, the average price for single-detached homes in the same district went up by 11.5 per cent (to $910, 906 from $816,938).


In the west end, condo prices increased by 7.3 per cent, single-detached prices by 6.6 per cent.


"Condominiums are clearly a viable – and now financially feasible – alternative to single-detached housing," says Michael Polzler, executive vice-president of Re/Max Ontario-Atlantic Canada.


Condo prices rose by double-digit amounts in 12 of 63 Toronto Real Estate Board districts in the GTA last year, Re/Max said in a statement. The best-performing district was Bayview Village, where average condo prices jumped by 40.8 per cent (to $340,113 from $241,611).


As for single-detached homes, their average prices increased by double-digit amounts in 13 of those 63 TREB districts, led by Forest Hill, where the average price climbed by 21.1 per cent (to $1,028,960 from $849,697).


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A. Mark Argentino
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RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

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Monday, January 28, 2008

Outlook for Housing Starts Continues to Look good!

The outlook for the housing market continues to be very upbeat for the near term.

Housing Starts:
2007: 227,500
2008: 214,300
Resales:

2007: 521,100
2008: 500,800

Housing starts will remain above the 200,000 unit threshold for a seventh consecutive year in 2008, a feat last accomplished in the 1971-1978 period.

Over the long term it is expected that residential construction will gradually decline as factors that drive housing become less stimulative reaching approximately 198,425 units by 2011. Despite this downward movement, the level of activity will remain well above the average annual level of about 150,000 housing starts observed during the 1990s.

The outlook for Canadian GDP growth remains positive over the medium term. The economy will continue to operate close to its capacity and expand at about 3 per cent from 2008 to 2011.

Employment growth is expected to be constrained over this time frame since a record number of Canadians are presently employed. Employment growth will average 1.3 per cent annually over the 2008 to 2011 period. At this pace, the unemployment rate is expected to creep up toward 6.5 per cent range by 2011.

Inflation will remain modest at about 2 per cent per year over the medium term. As a result, both short and long term interest rates will be fairly stable going forward. Longer term mortgage rates, such as the 5 year fixed rate, will stay low and should increase by 50 to 75 basis points between 2008 and 2011.

Population growth is a key driver of housing demand over the longer term and a major contributor to population growth is immigration. More than 216,000 immigrants arrived in Canada in 2006. Looking ahead, continuing tight labour market conditions will provide an attractive environment that will continue to draw large numbers of immigrants to Canada. As a result, net migration is forecast to rise steadily through 2011.

This rise will boost population growth and household formation, which in turn will support strong levels of housing starts through 2011.


Ontario, Quebec and British Columbia will continue to attract most of the new immigrants settling in Canada.
Source: CMHC Housing Market Outlook Canada Edition 4Q2007


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RE/MAX Realty Specialists Inc.

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Friday, January 25, 2008

USA Real Estate Round Up for 2007 from NAR


This is what NAR just reported: 2007 Existing-home Sales Fifth Highest


Existing-home sales declined in December following several months of stable activity, with total sales in 2007 still at the fifth highest on record, according to the NATIONAL ASSOCIATION OF REALTORS®.

Existing-home sales including single-family, townhomes, condominiums and co-ops – slipped 2.2 percent to a seasonally adjusted annual rate of 4.89 million units in December from a pace of 5 million in November, and are 22 percent below the 6.27 million-unit level in December 2006.

For all of 2007 there were 5,652,000 existing-home sales, the fifth highest year on record. However, the total was 12.8 percent below the 6,478,000 transactions recorded in 2006.

Lawrence Yun, NAR chief economist, says the market is experiencing uncharacteristic weakness.

"Home sales remain weak despite improved affordability conditions in many parts of the country, but we could get a quick boost to the market if loan limits are raised in combination with the bold cut in the Fed funds rate," he says. "Home prices are lower, mortgage interest rates continue to decline and incomes are higher, but many potential buyers are delaying a purchase."

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.10 percent in December from 6.21 percent in November; the rate was 6.14 percent in December 2006. Last week, Freddie Mac reported the 30-year fixed rate dropped to 5.69 percent.

"Although interest rates on jumbo loans have fallen somewhat, they remain well above conventional mortgage rates," Yun says. "It isn't surprising that the share of single-family homes selling for more than $500,000 fell to 12.4 percent of transactions in December from 14.2 percent a year ago."


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Thursday, January 24, 2008

Comments on Canada's Economy from RBC

The Canadian economy still robust

Canada's economy grew at a 2.9% annual rate in the third quarter, only moderately slower than the 3.8% second-quarter pace and first-quarter 3.5% increase. The strength in the third quarter came from the domestic economy, which has been the mainstay of Canada's economic growth during the past several years.

Job growth beat expectations once again in November, with 42,600 jobs created, trouncing forecasts for an 8,000 job gain. The job market has generated 388,200 new jobs so far this year and the pace of wage gains has accelerated strongly from the tepid 2.3% average increase in the first quarter to the 4.2% average pace in October-November.

Retail sales fell 0.2% in September for the third time in the past four months,largely driven by a 1.3% drop in sales by new car dealers. The decline in real retailsales and the only modest increase in manufacturing shipments in September pointto moderating GDP growth in the month.

Housing starts were essentially unchanged in November, coming in at a 227,900 annualized pace compared to 227,600 in October. The average level of housing starts activity year-to-date has been the highest since 2004. Our forecast assumes that starts will trend lower, eventually averaging a little above 200,000 in 2008.

The merchandise trade surplus widened to $3.3 billion in October as exports inched lower by 0.5% and imports dropped 2%. After shaving 4.8 percentage points from third-quarter economic growth, drag from the trade sector and slower domestic demand will slow GDP growth again in the fourth quarter.

Canada's core inflation rate moved to its lowest level since April 2006 in November, and held below the 2% target for the second month running. The all-items inflation rate will likely remain above the Bank of Canada's 2% target in the near-term, but continued discounting by Canadian retailers will keep the core rate below the 2% target.

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Wednesday, January 23, 2008

RE/MAX Reports Condominium appreciation outpaced single-detached housing


New Report from RE/MAX Condominium appreciation outpaces single-detached housing
values in key GTA districts in 2007
, says RE/MAX

Mississauga, Ontario (January 23, 2008) Condominiums experienced unprecedented upward pressure on average price in 2007, surpassing gains reported in the single-detached category for the first time in key GTA districts, including the central core and west end.

According to RE/MAX Ontario-Atlantic Canada, the average price of a condominium rose 12.2 per cent in the central core in 2007 ($327,559 vs. $292,064) while values in the west end jumped 7.3 per cent from $215,036 to $230,749. Statistics for single-detached homes reveal an 11.5 per cent increase in average price in the central core ($910,906 vs. $816,938) and a 6.6 per cent increase in the west ($417,407 vs. $444,945) during the same period.

"Condominiums are clearly a viable—and now financially feasible—alternative to single-detached housing," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada.

"With so many purchasers forced to compromise on their choice of housing, the ever-growing return on investment in the condominium market is proving to be quite the consolation prize."

Despite higher prices across the board—approximately 20 per cent, or 12 of 63 Toronto Real Estate Board Districts, experienced a double-digit increase in average price in 2007—the condominium lifestyle allows purchasers to live in the GTA's most coveted communities at a fraction of the price of a single-detached home.
The best performing markets in 2007 include top-ranking Bayview Village (C15), leading with a 28.9 per cent increase in average price year-over-year ($241,611 vs. $340,113); Yorkville, Annex (C02) in second place with a 23.9 per cent increase ($494,861 vs. $650,379); and Rosedale, Summerhill (C09) in third place, with values 17.2 per cent ahead of 2006 figures ($462,067 vs. $558,435).
Forest Hill, Deer Park (C03) and Swansea, Roncesvalles, South Parkdale (W01) both tied at 14.8 per cent—$514,823 vs. $604,924 and $246,900 vs. $289,872 respectively claiming fourth place, while SE Mississauga, Applewood, Rathwood (W14) rounded out the top five at 14.6 per cent ($180,279 vs. $211,185).

"Condominiums now outsell single-detached homes two to one in the central core," explains Polzler.

"Condo sales have accounted for an increasing percentage of the marketplace in the central, west, and northern districts since 2005. The trend is expected to continue as affordability levels diminish, particularly in the central core. It's also important to recognize that the vast majority of these purchasers are end-users and speculation is a rare occurrence in the resale condominium market."

Although they carry some pretty hefty price tags, single-detached homes continued to post solid gains as well, with approximately 21 per cent or 13 of 63 Toronto Real Estate Board districts, reporting increases over 10 per cent in 2007. The best return on investment occurred yet again in proven blue chip neighbourhoods. Forest Hill (C03) led the way with a 17.4 per cent increase in average price in 2007, rising from $849,697 in 2006 to $1,028,960. Leaside (C11), Lansing, Willowdale (C07), and Bathurst Manor, Armour Heights (C06) placed second, third and fourth, with prices rising 14.2 ($791,083 to $922,607), 13.4 ($537,891 to $621,185), and 12.2 per cent ($523,736 to $596,551) respectively year-over-year. Thriving Port Credit (W12) placed a strong fifth with a percentage increase of 11.7 per cent in average price, bringing single-detached housing values in the area to $577,461 from $509,380 in 2006.

"When it comes to bricks and mortar, homeownership can be cost-prohibitive," says Polzler. "The surge in condominium sales and prices is a glimpse at the future. Not only is the condo lifestyle more widely accepted, it is also highly coveted by many. Location, price, amenities, views, low-maintenance living—it's the ideal package for a growing number of purchasers. As such, price growth and demand are expected to continue strong into 2008. "

RE/MAX is Canada's leading real estate organization with over 17,500 sales associates situated throughout its more than 640 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 34th year of consecutive growth, is a global real estate system operating in over 65 countries. More than 7,000 independently owned offices engage 120,000 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information, visit: http://www.remax.ca/.

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A. Mark Argentino
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Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
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Monday, January 21, 2008

CREA reports that 2007 of existing home sales sailed to another rrecord


CREA reports it's Another press announcment that existing home sales soar to record in 2007


But demand slumped at the end of the year, signalling a rough start to 2008; average price also hits a new high


The value of existing home sales blew past $100-billion for the first time in 2007, but signs of fatigue late in the year are expected to carry into 2008.


Sales came in at a total of $118.3-billion last year, up 20 per cent from the year before, according to data released yesterday by the Canadian Real Estate Association (CREA).


The average price of an existing home also hit a record $326,055 last year across the 25 major markets tracked by CREA.


Sales peaked in the second quarter, and slowed near the end of the year because there were fewer transactions in Calgary, Vancouver, Ottawa and Montreal, according to CREA. Calgary had the biggest drop in unit sales in December, down 27.8 per cent, compared with the year before.



While a sag in December sales activity will likely continue in 2008, the Canadian market is still in much better shape than that of the U.S., said Douglas Porter, deputy chief economist at BMO Nesbitt Burns Inc.


"Even with the slight sag in December, Canadian home sales still easily hit a new annual high last year, in staggering contrast to the deepening trauma south of the border," Mr. Porter said in a research note.


"Housing is very unlikely to provide as much support to Canadian growth in 2008, but it's also highly unlikely to follow the U.S. market's due-south lead either."


For example, a total of 362,934 units were sold in Canada last year, up almost 8 per cent from 2006. This stands in "stark contrast" to the estimated 12.6-per-cent drop in U.S. existing home sales in 2007, Mr. Porter said.


Home prices, which rose 10.8 per cent in 2007 from 2006, are expected to go up at a more modest rate in 2008, according to CREA.


"A decline in inflationary pressures due to slower U.S. economic growth will enable the Bank of Canada to reduce interest rates," said Gregory Klump, CREA chief economist. "Additional interest rate cuts this year will keep resale housing market activity on a strong footing, and prices will continue to rise but at a slower pace."


By the numbers


$118-billion


Total dollar value of residential sales.


362,934


Number of units sold in 2007.


$326,055


Average price of home in 2007.


587,607


Number of new listings in 2007


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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

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Friday, January 18, 2008

RBC reporting Canadian Economy still expanding, but the pace likely to slow


RBC is reporting that the Canadian Economy still expanding, but the pace likely to slow


The economy grew at a 0.2% pace in October and at a 1.4% annualized pace compared to the 2.9% average of the third quarter, setting up for a more moderate quarter for growth following nine months of robust expansion.


Despite the slowdown in job growth in December, Canada's job market pumped out 370,000 new jobs in 2007 and the unemployment rate finished the year near its lowest level in 33 years. The 2007 job increase pushed the number of job created since 2002 above two-million and 82% of those jobs were full-time positions.


Retail activity started the fourth quarter on a firm note, rising 0.1% in October, stronger than market forecasts for a 0.4% decline. The strong labour market and firm wage growth will likely support retail activity as the fourth quarter progresses.


Housing starts slowed to a 187,500 seasonally adjusted annual rate in December from an upwardly revised 233,300 pace in November. Starts were 229,600 in 2007, a 1% gain over 2006. The housing market may cool a bit in 2008 we forecast starts of 210,000 units in the year.


The merchandise trade surplus was larger than expected in November, rising to $3.7 billion. But, with a strong Canadian dollar boosting imports and a sharply slower U.S. economy dampening demand for Canadian exports, we expect the drag coming from the trade sector to be even greater in 2008 than in 2007 and that the economy will grow at a more modest 2.1%.


Canada's core inflation rate moved to its lowest level since April 2006 in November, and held below the 2% target for the second month running. The all-items inflation rate will likely remain above the Bank of Canada's 2% target in the near-term, but continued discounting by Canadian retailers will keep the core rate below the 2% target.



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P. Eng. Broker
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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

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Thursday, January 17, 2008

Canadian Home Sales: House of the Rising Price

Canadian Home Sales: House of the Rising Price


After a blockbuster year, the Canadian housing market showed some early signs of fatigue as 2007 wore down. Today's December existing home sales data from the Canadian Real Estate Association show that resale activity faded 2.5% from the prior month and was a bit below year-ago levels as well. That's a big turnaround from the steady stream of solid gains through most of last year, which lifted sales to a record annual high and a hefty 7.9% above year-ago levels for all of 2007.

Last year's increase stands in stark contrast to the estimated 12.6% drop in U.S. existing home sales. And while Canadian sales may have lost a bit of momentum late in the year, prices just kept chugging right along. Average home prices were up 13.1% from year-ago levels in December, with 13 of 24 cities reporting double-digit increases. Average price gains have been somewhat skewed up by the mammoth 46% jumps in Regina and Saskatoon, but even the median city saw a 10.4% y/y price increase in December.

All cities west of Lake Superior reported double-digit price increases last year, with Saskatchewan cities firmly taking the baton from Alberta. However, price gains seemed to fade a bit right at the end of the year in Winnipeg and Vancouver. Elsewhere, prices actually gained speed at the end of 2007, despite the growing pressure on central Canada from the surge in the loonie and slowing U.S. growth. Toronto, Ottawa, Sudbury and Quebec City were among those cities in Ontario and Quebec that posted double-digit price gains from a year-ago last month.

Meantime, the previously steaming hot Alberta markets cooled further sales in both Calgary and Edmonton fell steeply from a year ago (Calgary down 27.8% y/y, Edmonton down 20.2% y/y), while new listings continue to rise. That's not a favourable backdrop for prices, although both are still hanging onto double-digit price gains as of December. Still, who would have believed at the start of 2007 that Toronto home prices were poised to rise faster in the next twelve months than in any of Calgary, Edmonton or Vancouver?

The Bottom Line: Even with the slight sag in December, Canadian home sales still easily hit a new annual high last year, in staggering contrast to the deepening trauma south of the border. Housing is very unlikely to provide as much support to Canadian growth in 2008, but it's also highly unlikely to follow the U.S. market's due-south lead either.

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Saturday, January 12, 2008

Real Estate Market Update from New Home Building Permit Perspective

Building Permits: From Boom to Gloom?

We don't normally write about a drop in Canadian building permits, even one like the 9.9% setback in November. However, given the suddenly heightened sensitivity over every twitch in the economy, today's decline is worth looking at, especially given the fact that it follows hard on the heels of a 19.6% drop in December housing starts and last week's 12.8 point plunge in the Ivey PMI for the same month. Is this trio of steep sags in admittedly third-tier economic indicators an ominous warning for the Canadian economy? In two words…probably not. While there is plenty to be concerned about on the outlook primarily the softening U.S. economy this sudden run of weak data in very volatile series is likely noise.

Putting it in perspective, building permits in the first 11 months of 2007 were up a hefty 12.4% from year-ago levels even with the November decline. And, keep in mind that the drop in November followed a 7.3% pop in the prior month. The latest setback was concentrated in the non-residential sector, which had been particularly frothy earlier last year (up 15.5% so far in 2007). Residential permits were also off 5% m/m, but were up by a surprisingly sprightly 10.5% year-to-date. (Contrast that with the 25% y/y plunge in U.S. building permits in the same period.)

Most provinces saw declines in November, led by Alberta (-13.8%) and B.C. (-20.0%). However, the top of last year's leaderboard was still crowded with western provinces. Permits in Saskatchewan were up 33.9% last year, with Alberta (15.2%) next in line. Notably, Ontario was in third spot, thanks to a strong 26% rise in non-residential activity.

In a separate release, new home prices were a touch firmer than expected in November, rising 0.5% m/m. This held the annual trend steady at 6.1%. In a sign of just how far-flung home price pressures are in Canada, the two biggest monthly increases were posted in Halifax and Quebec City. In contrast, new prices dipped again in Calgary, where annual price increases of 5% are now below the national average.


The Bottom Line: The Canadian building industry appears to be in the first stages of losing some momentum after a blow-out year in 2007. That's still a far cry from the deepening housing descent in clear view south of the border. In fact, given widespread talk of labour shortages in the Canadian industry, some cooling in the sector in 2008 may not be such a bad thing.

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Mark

A. Mark Argentino
P. Eng. Broker
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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
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Tuesday, January 08, 2008

Predictions For 2008 Interest Rates in Canada and US


Here are some predictions on Mortgage Interest Rates for 2008 from RBC


More rate cuts coming from the Fed and Bank of Canada


The ongoing turbulence in financial markets is affecting the outlook for U.S. and Canadian economic growth. U.S. real GDP growth is expected to slow to a pace of 1% to 1.5% over the next three quarters, while Canada's economy gears down to grow at less than a 2% pace, much slower than the 3.4% average rate in the first three quarters of the year.


This has led us to revise our interest rate forecasts downward. We now expect the U.S. Federal Reserve to lower the Fed funds rate by a further 75 basis points to 3.75% over the next three meetings. This is a change from the 25 basis points of easing in our previous forecast.


The combination of slower U.S. growth, volatility in global financial markets and moderating inflation rates saw the Bank cut the overnight rate by 25 basis points in December, and we expect another 25 basis-point rate cut in January. A month ago, we expected the Bank to cut the overnight rate by only 25 basis points.


Our expectation that the trade drag will continue to be substantial in coming quarters and that domestic demand will slow as the tightening in credit conditions takes a bite out of household and business spending means that the Bank will edge the policy rate lower in early 2008 as the economy shifts into a lower gear.


U.S. third-quarter GDP growth was revised up to a 4.9% annual rate from an already-robust 3.9%, implying that the economy had solid momentum as the tightening in credit conditions hit.


The deepening in credit market tightening and persistent financial market volatility mean that households and businesses are likely to remain nervous and risk-averse heading into 2008. We expect that the U.S. economy will eke out a growth rate of 1.5% in the first half of next year.


In this environment, the Fed will likely put inflation concerns on the back burner and focus on mitigating the downside risks to the economy. The Fed will likely lower the funds rate by a further 75 basis points; this, combined with a government-led program to limit future mortgage defaults should be enough to stave off a recession and support stronger growth in the second half of 2008.




Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale


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
2
FAX 905-828-2829 ÈCELL 416-520-1577
›
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


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Wednesday, January 02, 2008

2008 Predictions - How close were the 2007 Real Estate Predictions versus actual and my Real Estate Predictions for 2008

2008 Predictions for real estate, interest rates and the GTA economy.2007 Real Estate Market Predicitons for the GTA

Blogging is supposed to be personal writings that compel you to continue reading the story. All too often my blog has contained plenty of facts and information and been short on my personal views, observations and opinions. Part of this is due to time constraints, part due to the fact that I am a logical engineer thinker and mostly because I am not much of a creative writer. So here goes my shot at wowing you with words of wisdom and predictions for 2008.

One of the interesting things I've noticed is that as I approach 50 I feel I have a right to express my opinions more freely due to my earned right of experience. I teach a course to other 'newer' agents about the internet and the importance of having a presence on the web. Certainly I've tried to maintain a high profile on the web by uploading over 1700 pages on my site to date. That does not include my 353 blog posts to date. I digress.

After 20 years in the real estate business and having gone through the dark recession years for real estate from March 1989 to 1994 you can understand if I'm a little gun shy when I look at the current market. We've now experienced about 12 years of unprecedented growth in the real estate market. If you don't believe me, check out this graph. Old school business thinking was that economics went in 7 year cycles. Clearly this is NOT the case in the GTA real estate marketplace any longer. Long live Garth Turner. He was always an inspiration to me, good or bad, he would hang his thoughts on the line at any time. I miss his articles and predictions.

We've experienced year over year increases for 12 years in a row with no end in sight. I wrote this time last year and predicted a 4-6% increase in prices for 2007 Was I ever wrong! It seems that our prices will increase over 11% this year! Last year at this time I was worried that maybe our market was stalling a little due to increasing interest rates and slowing sales. Again I was a little too conservative.

So here we sit in Canada with low inflation, low unemployment, low interest rates and a strong economy. The US is faltering due to their sub-prime lending crisis and looks like it will last another 8-18 months, at least. November 2008 is a US election and in all US election years in the past 20 years our market has slowed in the 3 to 4 months preceding a US election. Canadian dollar all time highs. So with all these upcoming uncertainties you would think that I would predict lower increases or a softening of our marketplace. Nope. I think our market will continue to hum along due to low vacancy and rates and more buyers than sellers and continuing lack of land for new development.

For 2007 I am happy to report that I was wrong. I predicted an increase in the GTA average price of about 3-4% and the actual increase was about 11% Wow, was I ever wrong on that number, and many people are quite thrilled about that!

This is what I predicted that would happen last year this time for 2007



    • I believe that we will see a steady and 'normal' market in 2007. We will not see the huge price increases that we saw in 2004 and 2005. Prices should increase about 3-4%, a little better than inflation for the year. As always, if you are thinking of selling, February or March may be the best months in 2007.
    • This is what I predicted in December of 2005 for the real estate market in 2006. I was just a little lucky!
      It is interesting that many of the experts are predicting prices to rise only slightly for 2006, but nearly as not as much as they did in 2005. I would agree with this line of thinking. The last 4 months of 2005 showed signs of a more "normal" market. The market so far in 2006, up to the end of February has been normal, but nowhere near the sales volume or price increases that were experienced in early spring of 2005.
    • As long as rates stay about where they are we should see another year with a healthy real estate market for 2006 with modest price increases.
    • And sure enough, it appears that 2006 price increases will be about 5% compared to the nearly 10% we saw in 2005. The real estate boom in Toronto and the GTA is over, for the time being that is! We will have another real estate boom in Toronto, it's only a matter of time.


Read the entire post here:
http://www.mississauga4sale.com/newsletter/Toronto-GTA-Real-Estate-Market-Predictions-2007.htm


Mark's Crystal Ball for 2008

This is what I predict for 2008 in real estate, interest rates and more!

Mark's Predictions for 2007

Mark's Predictions for 2008


  • I see that our marketplace in the GTA will see price increases just above inflation, in the range of 4-6%

  • I believe that mortgage interest rates will come down in the beginning of the year and stay lower compared to today's rates and not increase again until just before the US election in the fall

  • Rental vacancy rates will decrease, thus rental rates will increase about 7-10% or more this year. A 'typical' 10 year old 3 bedroom townhome in Erin Mills currently rents for about $1400 to $1550 per month and this will
    increase by at least $100 per month by this time in 2008 This will only continue to make real estate investment properties more desirable and lucrative, it's time to buy another property if you can afford it!

  • The condo market will remain a strong part of our marketplace, due to affordability and lifestyle choices

  • I believe that the US will be just begin to see the light at the end of the tunnel by the end of 2008, their sub-prime mortgage crisis will have peaked and they will be on the road to recovery

  • A barrel of oil will have reached $120 per barrel sometime in 2008, mostly due to an international crisis and absurd speculation fueled by the pundits and the press

  • Along a similar vein to the last prediction, gasoline prices will peak at $1.20 per litre sometime in 2008 but will be $1.00 by year end.

  • Gold will break $900 (and it does not matter whether it's US$ or CDN$ much anymore!) sometime in 2008 but settle to $735 by end of 2008

  • If the experts are now stating that 82% of all buyers begin their real estate search on the internet, I believe that it will be 90% by the end of 2008

  • Watch out for following the emotions of the marketplace and stick to your long range goals

  • I believe that Mississauga will continue to be one of the top cities in Canada and the world to live in and that people will continue to choose Mississauga as one of their top choices of places to live in the GTA Read about the psychology of ownership. Real estate will always be an excellent investment especially if you get a firm hold on your finances and will continue to be the best long term investments in your future and your children's future that you can make!



Read more 2008 predictions and information at my site.


Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale




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
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com




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Monday, December 17, 2007

Canadian Resale Housing Market up 11.6% year over year - Good news for us all!


Canadian Housing: It is Legend

At least one Canadian economic train fully decoupled from the U.S. this year—the housing market. Today's November existing home sales data from the Canadian Real Estate Association show that resale activity barely blinked in the face of the severe credit squalls in the Fall. Sales rose 3.2% from October, and were up a solid 7.6% from year-ago levels. While some of the sales strength may be attributed to a buying rush in Toronto ahead of a new land transfer tax in 2008, that city saw only the fourth strongest rise in the country, and no fewer than 10 of the 25 reporting cities posted double-digit y/y sales gains last month. Meantime, price increases just keep chugging along.


Average home prices were up 11.6% from year-ago levels in November, with 12 cities reporting double-digit increases.

All cities west of Lake Superior continued to report double-digit price increases last month, led by the 50% sprint in Saskatoon. (That was actually down a shade from the 57% spike seen earlier this year.) However, the price surge is not confined to Western Canada, as Toronto, Kitchener, Sudbury and Quebec City have also posted double-digit gains.


Meantime, the previously scorching Alberta markets continue to cool—sales in both Calgary and Edmonton fell steeply from a year ago (Calgary down 18.4% y/y, Edmonton down 22.3% y/y), while new listings have posted double-digit gains. That's not a friendly combo for prices, looking ahead. Notably, only three cities reported sales declines in the first 11 months of the year—Edmonton, Calgary and Windsor. Elsewhere, however, markets still look tight, with rapid sales increases suggesting that prices could climb further in a number of cities.



The Bottom Line: Canadian home sales have hit a new annual high with one month left to go, an impressive performance in view of the traumatized U.S. market and the variety of risks facing the Canadian economy.


While there are plenty of questions surrounding the 2008 economic outlook, not many are from the domestic side of the equation. Housing may not manage to pack as strong a punch next year as it did in 2007 for the Canadian economy, but it's also highly unlikely to suffer a knockout blow either, a la the U.S. market over the past year.


Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale


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
2
FAX 905-828-2829 ÈCELL 416-520-1577
›
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com


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Wednesday, December 12, 2007

Alberta Prices are changing - Canadian Housing Market Commentary

Housing Market Commentary

CANADIAN HOME PRICES NO LONGER AN ALBERTA STORY

According to the latest MLS / CREA existing home market data for October, year-to-date national resale home prices are up 10.5%. They will average close to $305,000 in 2007 compared to around $275,000 last year. This will mark the third consecutive year of 10% appreciation or more in the average Canadian existing home, a remarkable performance. But much of the price gains in recent years have been driven by markets west of Ontario, most notably in Alberta — where gains were outsized. National housing market statistics had lost much significance over the last three years due a marked divergence in performance between "the West and the rest". In particular, along with 30%+ sustained price gains over the last two years and because of their significant and growing market size, Calgary and Edmonton were skewing the national figures.

Yet as we crunch the numbers and look forward to 2008-09, we can state with some assurance that this particular chapter in Canadian housing market history is soon coming to an end, if not already behind us. Alberta's home price growth is cooling rapidly. The pickup in national average prices since January is mostly an Eastern markets story. After bottoming out in terms of home appreciation during the tail-end of 2006, Quebec and Ontario (and the Atlantic region to a lesser extent) continue to pick up enough steam to push up the national trend despite a massive cool down out West. This is particularly notable in Ontario where an uptrend since April has contributed heavily to a bounce-back in overall Canadian prices. We expect Alberta's home prices to grow close to par with the national average in 2008 and to underperform in 2009. And while Saskatchewan is currently on fire, it will likely follow a similar path in about 12 months time. Furthermore, Saskatchewan would not on its own skew the national numbers given its smaller market size.

With much less regional dispersion around the Canadian mean, national numbers start to have meaning again. This is reflective of underlying market (demand/supply) conditions: Calgary and Edmonton have become much more balanced with more listings coming on tap and sales slowing, whereas most large urban markets in Ontario and Quebec have seen the reverse, with their markets tightening.

Under a reasonable scenario of a continued cool down in Alberta (and in British Columbia to a lesser extent) and that Ontario and Quebec hold in around 7-9% or higher for a few months, then resale price growth performances should converge sometime in the second quarter of 2008.

Read more about Price Trends

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

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
2
FAX 905-828-2829 ÈCELL 416-520-1577
›
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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Tuesday, December 11, 2007

Canadian Housing Starts still high -- November 2007


Canadian Housing Starts Steady


New housing construction showed no signs of letting up in November. Housing starts, at an annualized rate of 227,900, were virtually unchanged from October and roughly in line with both market expectations and the pace in the last 12 months. Activity on the single-detached side bounced to its strongest level since March 2006, more than retracing some softness in October. The multi-units side continued to digest a 29-year-high spike in September and fell for the second straight month.


On a provincial basis, activity cooled in six provinces in November with the biggest declines in Quebec, Nova Scotia and Manitoba. Hefty gains in Ontario and B.C., however, heated things just enough to keep the overall temperature steady. In recent months, momentum has shifted from Alberta to B.C. as Western Canada's housing construction hotspot. In Central Canada, Ontario has regained leadership (notwithstanding a multi-unit surge in September), while Newfoundland & Labrador is the key engine in Atlantic Canada.


The Bottom Line: Despite earlier concerns about the potential impact of the financial market storm on Canadian housing demand, home building remains a pillar of strength in the Canadian economy. With strong job creation and favourable interest rates still providing support, residential construction is carrying good momentum into 2008.


read more about GTA Property Trends


Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale


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
2
FAX 905-828-2829 ÈCELL 416-520-1577
›
E-MAIL : mark@mississauga4sale.com
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Monday, December 10, 2007

RBC report that Canadian Economy continues on a solid growth path



RBC Report that our Canadian Economy stays on a solid growth path


Canada's economy grew at a 0.2% pace in August and has expanded at a 2% annualized pace in the July-August period compared to the 3.4% average of the second quarter, setting up for a more moderate third-quarter following six months of very robust expansion. However, the downside risks to the growth outlook have been mounting as the U.S. housing market correction continues in full swing and the Canadian dollar treks to higher levels.


Canadian payrolls rose 63,000 in October. The unemployment rate ticked down to 5.8%. Average hourly earnings for permanent workers accelerated to 4.2% yearover- year from 4.1% in September, marking the fastest pace since May 2001.


After two back-to-back declines, retail sales picked up pace in August, rising by 0.7%. Retail sales slowed in the first two months of the third quarter but remained in positive territory in real terms, supported by the strong labour market and a pickup in wage growth.


Housing starts slipped back in October to a 219,500 annualized pace from the exceptionally high 281,300 pace in September, the highest level since 1978. Our forecast assumes that starts will generally trend lower, eventually averaging a little above 200,000 in 2008.


The merchandise trade surplus narrowed to $2.65 billion in September, the smallest surplus since December 1998. Exports fell by 2.3%, while imports rebounded by 2.2%. The strong rally in the Canadian dollar into November and robust domestic demand set up for import growth to remain firm, while the slowing in U.S. demand is likely to keep export growth limited, meaning that the trade sector will restrain the pace of GDP growth in the months ahead.


The 12.7% surge in gasoline prices and the huge 17.5% drop in gasoline prices last September pushed the year-over-year all-items inflation rate to 2.5%, the highest level since May 2006 and solidly above the Bank of Canada's 2% inflation target. Courtesy of RBC Economics


read more about Current Mortgage Interest Rates,


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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.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
›
E-MAIL : mark@mississauga4sale.com
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Wednesday, December 05, 2007

TREB Toronto Real Estate Board reports that November was BestEver, Best Year Ever!

TREB Reports that this was the Best November Ever, Best Year Ever! Homes for Sale

December 5, 2007 -- A record-breaking November saw 7,313 sales, driving year-to-date totals to 88,695 sales, TREB President Maureen O'Neill announced today. "We have already exceeded the 84,145 sales recorded during 2005, which was our previous record," said the President. "By the end of December we will have crossed the 90,000 sales mark for the very first time. As 2007 winds down, the GTA resale home market is looking as healthy as it has ever been."

Prices were almost unchanged in November, with the average at $393,747, down marginally from the $394,646 recorded in the previous month. It was up 11 per cent over the $355,727 recorded during November 2006. Meanwhile, days-on-market came in at 32, and the list-to-sale price ratio was 98 per cent.

Breaking down the total, 2,725 sales were reported in TREB's 28 West districts and averaged $362,272; 1,529 sales were reported in the 14 Central districts and averaged $519,841; 1,354 sales were reported in the 23 North districts and averaged $417,967; and 1,705 sales were reported in TREB's 21 East districts and averaged $311,738.

Read more about sales and stats and see a price graph

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

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
2
FAX 905-828-2829 ÈCELL 416-520-1577
›
E-MAIL : mark@mississauga4sale.com
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Rags to riches to real estate

Rags to riches to real estate

(NC)-Being wealthy is no longer a matter of being born into the right family but hard work stemming from a desire to do well. The 2007 Royal LePage Carriage Trade Luxury Properties Report - (conducted by (Ipsos Reid) - suggests that almost half (46%) of high net worth Canadians cite hard work as the main driver to attaining wealth, followed by the drive to succeed (27%) and a higher education (18%). Only four per cent (4%) of respondents chalk their success and their financial stability to being born into the right family, while one per cent (1%) attributes it to plain old luck.

A significant increase in the unit sales of high-end homes across Canada indicates that more and more Canadians are reaping from the rewards of their hard labour.

"Luxury living is no longer the exclusive domain of a few. Buoyant economic conditions and confidence in the market going forward have ignited a growing passion for investing in luxury property among an increasing number of Canadian families," said Phil Soper, president and CEO, Royal LePage Real Estate Services.

It is no wonder that the sales of high-end homes are booming; half (47%) of high net worth Canadians live in properties valued from $600,000 to $999,000, while 12 per cent live in homes with price tags starting at $1 million. In addition, demand for well-appointed properties remains strong with a trend of affluent Canadians owning more than one home.

More information on trends in your neighbourhood is available online at http://www.royallepage.ca/. Credit: http://www.newscanada.com/

Read more about our current marketplace statistics

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

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
2
FAX 905-828-2829 ÈCELL 416-520-1577
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E-MAIL : mark@mississauga4sale.com
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Tuesday, November 20, 2007

It was the highest October on record for MLS® home sales

Highest October on record for MLS® home sales

OTTAWA November 15th, 2007 MLS® resale housing activity in Canada's major markets had their strongest showing in October compared to any other year on record and are on track for a new annual record, according to statistics released by The Canadian Real Estate Association (CREA).

Seasonally adjusted national MLS® sales activity rebounded to 28,966 units in October 2007, up 1.3 per cent from levels recorded in September. The rebound follows three consecutive monthly declines since sales peaked in June, and reflects a rise in activity in Toronto, Edmonton, Hamilton-Burlington, Victoria, Montreal, Quebec City and Winnipeg. Higher activity in these markets more than offset sales declines in Calgary, Vancouver, Saskatoon and Sudbury.

Actual (unadjusted) MLS® sales activity was up 7.6 per cent in October compared to the same month last year. Transactions posted year-over-year gains in every month except September this year, putting activity on track for a new annual record. MLS® home sales activity for the year-to-date in October totaled 319,411 units, an increase of 8.6 per cent compared to levels for the first ten months last year. Year-to-date transactions continue running ahead of year-ago levels in nearly all major markets.

Seasonally adjusted n ew MLS® residential listings edged down 0.2 per cent month-over-month in October 2007 to 49,497 units. This is the fifth highest monthly level on record. New listings receded from their peak in Calgary, and eased to their fourth highest level in Edmonton. The decline in new listings in these markets more than offset a rise in new listings in Toronto and Montreal.

"The trend in new listings shows there is no panic selling in Canada's housing market," said CREA President Ann Bosley. "It is important Canadians understand the differences between the Canadian and U.S. housing markets, and their local REALTOR® can provide that information."

CREA's MLS® revised market forecast for 2008 indicates a gradual slowdown in the re-sale housing market nationally, but MLS® sales volume will remain at near record levels. "The MLS® residential average price is forecast to set new records in all provinces next year, but those increases will become smaller as the resale housing market becomes more balanced in 2008," Bosley added.

The monthly rise in sales activity in October 2007 caused the resale housing market to tighten a little compared to the previous month. Winnipeg, Regina and Hamilton-Burlington were the tightest of Canada's major markets in October, while Edmonton, Calgary and Windsor were most balanced.

The major market MLS® residential average price rose 10.6 per cent year-over-year to $333,544 in October the sixth consecutive month that the increase exceeded ten per cent. Average price reached the highest level on record in Regina, Saskatoon, Toronto and Montreal.

"More than half of major markets posted a monthly increase in activity," said CREA Chief Economist Gregory Klump. "By the end of next month MLS® sales activity is likely to exceed the annual sales last year."

"Negotiations still favor the seller in nearly all major markets," said Klump. "This suggests resale housing demand remains on a strong footing, and that price increases will continue to exceed overall consumer price inflation."

MLS® Major Market Residential Summary:

(Unadjusted Data)

September
2007

% change

October
2007

October 2006

e

Dollar Volume ($ millions)

9,632.5

9,408.6

2.4

9,475.3

7,963.1

19.0

Unit Sales

28,966

28,587

1.3

28,408

26,407

7.6

Average Price ($)

333,544

301,552

10.6

New Listings

49,497

49,580

-0.2

50,880

47,773

6.5

CREA cautions that average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighborhoods or account for price differential between geographic areas. Statistical information contained in this report includes all housing types.

MLS® is a co-operative marketing system used only by Canada's real estate Boards to ensure maximum exposure of properties listed for sale.

The Canadian Real Estate Association (CREA) is one of Canada's largest single-industry trade associations, representing more than 92,000 REALTORS® working though more than 100 real estate Boards and Associations. CREA's primary mission is to represent members at the federal level, and to defend the public's right to own and enjoy property.

This report is published by the Communications Department of The Canadian Real Estate Association (CREA). Further information can be found at http://www.crea.ca/.

Read more about local GTA Price Trends

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

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
2
FAX 905-828-2829 ÈCELL 416-520-1577
›
E-MAIL : mark@mississauga4sale.com
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Thursday, November 15, 2007

RE/MAX reports that Condominiums have achieved unprecedented favour among Canadian home-buyers

Condominiums achieve unprecedented favour among Canadian homebuyers, says RE/MAX

Double-digit sales gains reported in most major markets in 2007

MISSISSAUGA, ON, Nov. 14 /CNW/ - After more than three decades of slow but steady growth, the condominium concept has finally clicked with Canadian homeowners. The lifestyle has proven to be a solid investment in housing markets across the country, chalking up some of the most impressive gains in residential real estate in 2007, according to the RE/MAX Condominium Report released today. Their universal appeal is substantiated, with every market reporting increased momentum in condominium sales volume over 2006 levels. In fact, 80 per cent of markets surveyed reported double-digit gains in sales year-over- year, with 53 per cent reporting increases over 20 per cent. The greatest growth was experienced in Canada's small to mid-sized markets. Leading the country, in terms of percentage increase in sales so far this year, are Kitchener-Waterloo (+59%), Regina (+57%), St. John's (+54%), and Saskatoon (+33%).

Deteriorating affordability levels in major Canadian centres have led to the resurrection of the condominium lifestyle in recent years," says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. "Condominiums are clearly the answer to the skyrocketing cost of land and shelter that has all but eradicated the dream of homeownership for many first-time buyers."
While price appreciation on freehold properties, in particular, was the primary factor in the upswing, the strong desire among baby boomers to lead an active, carefree lifestyle has also driven the concept to unprecedented popularity. The RE/MAX Condominium Report identified Greater Vancouver as the strongest market in the country - where close to 60 per cent of all residential sales now involve a condominium. Condominium presence is also on the rise in centres such as Toronto, Edmonton, Calgary, Regina, Ottawa, and Hamilton-Burlington, where condos now represent 20 to 30 per cent of all MLS sales.
"The white picket fence, sprawling green lawn and tidy urban bungalow has become an unattainable ideal for many first-time buyers - especially in the West," says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. "By necessity, condominiums have become the only practical means to homeownership for a growing segment of the population. Today's entry-level purchasers aspire to manageable mortgage payments, sunset city views, and the non-stop action and amenities of central core living, all packed into 600 to 800 sq. ft. The momentum of the market in recent decades has redefined the home buying process."
Condominium values were also up from coast-to-coast in 2007, with all major markets reporting an increase in average price. Thirty-three per cent of cities surveyed reported double-digit price appreciation. The most dramatic hikes were seen in Western Canada's red-hot housing markets, led by Saskatoon (+24%), Calgary (+22%), Edmonton (+19%), Kelowna (+16% for town homes, +12% for apartments), Vancouver (+14% for town homes, +11% for apartments), and Victoria (+9% for town homes, +12% for apartments).
At the top end of the market, condominium ownership has been equated with lifestyle. Throughout 2007, aging baby boomers fuelled demand for luxury condominium units. Upper-end activity was reported to be on the rise in all markets examined, with the greatest appreciation occurring in Edmonton (+154%), Greater Toronto (+98%), Victoria (+85%), Winnipeg (+58%), Vancouver (+49%) and Kitchener-Waterloo (+39%). The maintenance-free factor, the ability to travel and to enjoy the best the city has to offer - from restaurants to recreation - were cited in overall condominium appeal.
"In years past, there seemed to be a ceiling in terms of what buyers were willing to pay for this type of product," says Polzler. "Widespread acceptance has seen that philosophy tossed out the window. In the upper-end especially, buyers have demonstrated a willingness to set new benchmarks, and in some cases, are spending more than what a detached home might cost. Multiple offers, once unheard of, have become a reality in some centres."
New benchmarks for the most expensive apartment-style condominium units ever sold through MLS have been reported in several cities in 2007, including Vancouver ($18 million), Calgary ($3.7 million), Edmonton ($2.3 million), Winnipeg ($1.25 million), and Kitchener-Waterloo ($670,000). Given solid demand through all price ranges, it comes as no surprise that
investors have been very active in the majority of markets surveyed, hoping to snap up a piece of the pie while demand remains at peak levels. Yet, with a growing number looking for a quick return on investment, swelling inventory levels have become a serious concern in several markets, most notably in Calgary and Edmonton, and to a much lesser extent, Kelowna.
"The impact of speculation, especially in Canada's largest condominium markets, has yet to be determined, but concerns for the future are relevant," says Ash. "In downtown Vancouver, an estimated 50 per cent of sales activity is attributed to investors, whereas as much as 60-85 per cent of new condominiums sales in Toronto's downtown core reportedly involved investors in 2007. This is a major factor that could influence prices in years to come."

For now, a number of market fundamentals point to increased growth in sales, prices and demand well into 2008. These include vibrant economies, Canada's aging population, rising prices, and higher levels of immigration, to name a few.
Read more about Price Trends

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Mark

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


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GST reduced from 6% to 5% as of January 1st 2008- How will it affect real estate transactions?

GST Reduction Information

November 9, 2007 -- A reduction in the GST from 6 per cent to 5 per cent was announced by the federal government on October 30, 2007. With regard to the purchase price of residential properties, GST only applies to sales of newly constructed and substantially renovated homes.

GST is not applied to the purchase price of resale homes, but it does apply to REALTOR® commissions. The reduced rate will become effective on January 1, 2008; however, the reduced rate will apply to the purchase price of new homes immediately, subject to transitional rules detailed below (Note: This summary has been reviewed by the Canadian Real Estate Association for accuracy).

REALTOR® Commissions

GST is generally payable when an invoice is issued. However, since commissions do not typically become payable until the transaction closes, the closing date is generally the relevant date for calculating the applicable GST rate. The GST rate will depend on when the GST on the commission is paid or payable, as follows:

  • If GST becomes payable, or is paid without having become payable, before January 1, 2008, the rate of 6 per cent will apply.
  • If GST becomes payable on or after January 1, 2008, without having been paid before that day, the rate of 5 per cent will apply.
  • If GST is paid on or after January 1, 2008, without having become payable before that day, the rate of 5 per cent will apply.

Purchase Price of New Homes

Ownership or Possession Transferred before January 1, 2008: Generally, the 6 per cent rate will apply if ownership of the property, or possession of it under the agreement of purchase and sale, is transferred to the buyer before January 1, 2008.

Ownership and Possession Transferred on or after January 1, 2008: The 5 per cent rate will apply if both ownership of the property and possession of it under the agreement are transferred to the buyer on or after January 1, 2008. Note the special transitional rule for new residential housing below.

Sales of New Housing under Written Agreements Entered Into on or before October 30, 2007 Where Both Ownership and Possession Transferred on or after January 1, 2008. The Following Rules Apply:

  • Agreements of Purchase and Sale entered into on or before October 30, 2007 but after May 2, 2006, the 6 per cent rate will apply.
  • Agreements of Purchase and Sale entered into on or before May 2, 2006, the 7 per cent rate will apply.
  • In both of these circumstances, the purchaser will be entitled to file a claim directly with the Canada Revenue Agency to be paid a Transitional Rebate that reflects the GST rate reduction to 5 per cent, net of any corresponding rebate adjustment.

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Mark

A. Mark Argentino
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Specializing in Residential & Investment Real Estate



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Saturday, November 10, 2007

Housing Affordability - Rising price-to-rent ratios partly justified

A look beyond our standard affordability measure
Our latest housing affordability calculations showed that the proportion of before-tax household income going towards home ownership costs suffered one of its largest and most broadly based quarterly deteriorations in the current housing cycle stretching back to the mid-1990s. While the deterioration spanned every major city, it was the western markets that warranted caution because of the speed and depth of the deterioration.



Our affordability measure provides a rough depiction of trends in wages, the cost of capital, energy prices and tax rates, but it has limitations. It does not directly address whether or not house prices are high today by historical standards and how they compare to local rental options and it does not account for recent financial innovation, such as the introduction of products like extended amortization mortgages.


Another measure that provides an indication of an over- or undervalued market is the price-to-rent ratio that compares house prices to rental costs using the rent component in the consumer price index. The purpose is to compare the cost of buying compared to renting a house. While insufficient on their own to predict market valuations, together the affordability measure and price-to-rent ratios can help assess whether housing markets are inflated.


Rising price-to-rent ratios partly justified
The unanimous trend of rising price-to-rent ratios across every major city in the current housing cycle can be partly attributed to recent financial market developments and innovation. The precise combination of historically low interest rates coupled with significant financial innovation has been a key support in the current housing cycle. Interest rates were on a downward trend through much of the 1990s and have held at very low, attractive rates since the start of the decade, thus helping to fuel housing demand. Financial innovation has also helped to make the market more liquid through extended mortgage amortizations, higher accepted loan-to-value ratios and securitization. In fact, longer amortization products now dominate new mortgages in the insured market and comprise about 25% of total new mortgages in Canada.



Regional disparities behind soaring price-to-rent ratios
National price-to-rent ratios were remarkably stable through the 1990s, indicating a relative indifference between buying compared to renting a home. The result in the 1990s was a significant improvement in affordability right across the country. The tide turned at the start of the current decade and price-to-rent ratios have since increased by roughly 80% nationally. A rising ratio is indicative of house prices outpacing rental costs. These trends are not a consistent cross-provincial phenomenon. Part of the increase in the ratios is attributable to what has become an overheated market out west. However, part is also due to changing dynamics in the market that have made housing more affordable and accessible to lower-income segments.



The bottom line
While financial market trends help explain some of the increase in price-to-rent ratios in central and eastern Canada, they do not fully explain the increases out west. By considering affordability conditions in conjunction with price-to-rent valuation estimates, a fuller picture of the sustainability of current fundamentals emerges. Together, these measures point to evidence of overvalued markets in the west, while markets from Manitoba eastward appear, on balance, to be fairly valued From RBC Economics


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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.

Providing Full-Time Professional Real Estate Services since 1987

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Tuesday, November 06, 2007

TREB Home sales up 15 percent, price up 11 per cent year over year

October Sets New Record for TREB Real Estate Toronto Real Estate Board (TREB) Average Prices and Graph

November 5, 2007 -- TREB Members recorded 7,915 transactions of single-family homes in October, an all time record for the month, TREB President Maureen O'Neill announced today.

"Sales were up 15 per cent over the 6,876 figure recorded in October of 2006, and up about 10 per cent over the 7,227 transactions that took place in October 2003, which was our previous record."

"There is every indication that 2007 will be a banner year for resale housing activity in the Greater Toronto Area," said Ms. O'Neill. "The effects of the City of Toronto's new land transfer tax will definitely be felt in 2008 but we are also confident that consumers will continue to see the value of real estate as a solid long-term investment."

Prices rose in October, with the average climbing four per cent to $394,646 over September's $380,132, and up 11 per cent over the $356,423 recorded in October of 2006.

Breaking down the total, 2,964 sales were reported in TREB's 28 West districts and averaged $367,139; 1,602 sales were reported in the 14 Central districts and averaged $522,800; 1,555 sales were reported in the 23 North districts and averaged $415,071; and 1,794 sales were reported in TREB's 21 East districts and averaged $307,950.

See the graph showing the latest Price Trends This page will show you the latest prices, graphs, interest rates and more

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Mark

A. Mark Argentino
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Specializing in Residential & Investment Real Estate



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Tuesday, October 30, 2007

Vancouver has the most expensive housing market in Canada

Vancouver has the most expensive housing market in Canada
Homes for Sale
VANCOUVER: On a recent Wednesday evening at the Gotham Steakhouse in the city center here, about 100 people gathered around an open bar for a party given by Ian Watt, a Century 21 broker, who had invited clients to thank them for buying property in the city.

One of the guests was Annu Gill. With her fiancé, Rick Gill, who coincidentally has the same last name, she had bought a 1,200-square-foot, or 110-square-meter, condominium at the Sheraton Wall Center, a 42-story hotel with 74 units in the center of Vancouver. The condo cost 1 million Canadian dollars, or $1 million.

"When I try to explain to friends in the States how much it costs here, they don't believe me," Annu Gill, 29, who is a real estate broker, said of the city's high prices. "They say, 'You're lying.' "

But 830 dollars a square foot - which is how much the couple paid for the condo - is not unusual these days.

The center of Vancouver is the most expensive housing market in Canada, according to a survey of 21 cities worldwide released last April by Century 21. The average sales price for a condo in Vancouver has been about 408,500 dollars this year, up 14.6 percent from last year, according to Royal Le Page Real Estate Services. The average sales price in Toronto, Canada's largest city, was about 235,300 dollars, up 15.7 percent from last year, and in Montreal, 196,400 dollars, up 4.6 percent.

Europe slow to turn to shared ownership

Vancouver has the most expensive housing market in Canada

Tide of investment sweeps Bahamas

The number of homes in Vancouver selling for almost 2 million dollars also rose this year, by 48 percent, according to Re/Max Associates. The higher prices reflect years of price gains of 15 to 20 percent, according to Helmut Pastrick, the chief economist for the Credit Union Central of British Columbia.

Fueling the high-end market are foreign and second-home buyers, he said, though not necessarily from the United States. The weak American dollar, which for the first time in decades is worth less than the Canadian dollar, has been making real estate in Canada more expensive for Americans.

Other foreign buyers make up a significant percentage of the market, according to Ian Gillespie, the president of Westbank Projects. The company is building several residential towers in the center, including the 60-story Living Shangri-La, which will be Vancouver's tallest building when it is completed in 2009.

"This is a very multicultural city," said Gillespie, who cited as an example a pharmaceutical executive from the Middle East, who recently bought a 1,700-square-foot, 3.55 million-dollar condo at the Fairmont Pacific Rim.

The city's population has grown substantially as a result. In 2006, there were 36,321 more people living in Vancouver than in 2005, according to Statistics Canada, and 72 percent of the newcomers were immigrants.

It is not hard to understand why the city is so appealing: Vancouver has been described as Canada's version of San Francisco. It has a cosmopolitan feel, yet it is surrounded by mountains and water. The temperate climate attracts retirees, while the vibrant urban lifestyle draws young singles. The economy, supported by forest products, mining and an active film industry, is also growing, thanks in part to the development associated with the city's serving as host to the 2010 winter Olympic Games.

The most expensive condo on the market in the center of Vancouver right now is a 7,000-square-foot waterfront penthouse listed for 17.7 million dollars. The 38-year-old owner, an entrepreneur, said he bought the condo for about 2.9 million dollars four years ago, then sank millions more into renovations.

Jamie MacDougall, an agent with Sotheby's International Realty, said that the condo was still considered cheap, compared with comparable properties in New York or San Francisco. It has been on the market since July.

Although price increases have slowed this year, Vancouver's housing market is not experiencing a bubble, Pastrick said. Less aggressive mortgage underwriting practices have helped shield Canada from the credit squeeze that swept through the subprime mortgage market in the United States.

Bob Rennie, the president of Rennie Marketing Systems, a real estate marketing company, said Canadians typically put down 20 percent in nonrefundable deposits.

Every crane in the center is sitting over a building that is 75 to 100 percent sold out, with large deposits in place, Rennie said. "So the consumer is committed, and the developer is not at risk with construction," he noted. There are about 50 condo towers under construction in the center area.

In 2006, Diana Becker, the owner of a culinary tourism company, paid 875,000 dollars for a two-bedroom in the 37-story Jameson House, which is scheduled to open in 2009. Becker, who now lives on the outskirts of the center, said she had been attracted to the development's design. "It feels very Spanish Moroccan," she said. Becker says she is also looking forward to being able to walk to her favorite restaurants like Le Crocodile.
Not everybody is enthusiastic about Vancouver's growth. To make room for some projects, hundreds of single-room-occupancy hotel rooms for low-income residents have been lost, said David Eby, a lawyer with the Pivot Legal Society, a legal advocacy group. High prices are pushing out middle-income renters and buyers, he added.


Gordon Price, the director of the City Program at Simon Fraser University, said the city had erred in abandoning its commitment to maintaining a 33 percent low-income housing mix in the Southeast False Creek site. The development is being built initially to house athletes during the Olympics. Later, it is to be converted into condominiums and town houses selling for 584,000 dollars to 5.8 million dollars.

The city reverted to a 20 percent low-income housing mix because of concerns about cost, said Jennifer Young, a city spokeswoman, explaining that there had been a drop in government financing for low-income housing.

Darek Cole, for one, said he felt lucky to afford a home in the city. "Vancouver is a difficult place to get into, compared to other cities," said Cole, 26, who works for a marketing company. He paid almost 263,000 dollars for a 600-square-foot condo in the city's Downtown Eastside neighborhood.

"I knew it would be a good investment," he said. By Linda Baker Published: October 25, 2007

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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.

Providing Full-Time Professional Real Estate Services since 1987

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Monday, October 29, 2007

Positive CMHC Housing Market Outlook for 2007/2008

CMHC released their Housing Market Outlook for Q3 2007. The housing market forecast for the balance of 2007 and 2008 remains positive.

This article will highlight some of their findings (a "Coles Notes" version!):

Ontario - Overview

  • New home construction activity will moderate but remain near historical averages in 2007 & 2008;
  • Growth in Ontario's economy will range between 2 & 2.5% annually this year & next;
  • Ontario's economic growth will lag behind the Canadian average, but the growth gap between Ontario & the west will gradually narrow.

Ontario - Resale & Prices

  • Existing home sales through MLS will set a new record this year. Slightly higher carrying costs in 2008 will pull sales only modestly lower.
  • A more balanced resale market, resulting from higher listings, points to slower growth in house prices;
  • Average MLS price in Ontario will rise by 5.3% this year & 3.4% in 2008.

Mortgage Rates

  • Moderate inflation and a strong Canadian dollar vis-à-vis the U.S. dollar, will help keep Canadian bond yields and mortgage rates flat over remainder of this year.
  • Posted mortgage rates for 5 year terms are forecasted to be in the 6.5% - 7.5% ranges (for remainder of this year & 2008).

Ontario - Multiple Starts

  • Healthy pool of first time buyers looking for less expensive homes combined with provincial gov't efforts to promote higher density construction, suggest condo apartments will remain in demand;
  • Multiple starts will remain relatively stable - increasing slightly from 2007 to 2008.

Ontario - Single Starts

  • Demand for higher priced detached homes will cool despite a rapidly growing population of 'mid 40s' which prefer low density homes;
  • Single starts will cool from 2007 - 2008.

The Canadian Economy

  • The Canadian economy grew at a faster pace than expected in first quarter of 2007;
  • Consumer spending made a significant contribution to economic growth;
  • Key challenge for the Cdn economy has been the deterioration in net exports due to high value of CDN $ & the slow growth rate in US economy;
  • Consumer spending should stay vibrant thanks to high employment, income gains & relatively low interest rates.
The full report is available at http://www.cmhc-schl.gc.ca/odpub/esub/61500/61500_2007_Q03.pdf

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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
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Providing Full-Time Professional Real Estate Services since 1987

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Friday, October 26, 2007

Celebrating 20 Years in Real Estate!


Celebrating 20 Years in Real Estate!

I obtained my real estate license on Oct 26, 1987 and thus, today marks my 20th year in the real estate business. Much has changed in the business in 20 years. The Lord's Day Act prohibited selling real estate on a Sunday back in 1987. We did not begin using a fax machine until spring of 1988, and those fax papers would fade away after a month or two.

For the past 20 years, I carry two press releases inside my presentation folder. The one article is from the Toronto Star. It 'shouts' that the average price is predicted to rise over $200,000 in the next year. The average GTA price in October 1987 was $192,500 (today it's $380,132).

Even though I had bought my first townhouse in 1985 I needed some credibility to help me convice others that real estate was a good investment. Being new in the real estate business, I would pull out the Toronto Star article when I would meet people to prove that real estate was a good investment. I highlighted some of the paragraphs in the article and the key paragraph stated, "Real estate has always been a good investment and it has always produced excellent equity appreciation". I've not pulled out this article for about 10 years, but the same certainly holds true today as it did back then.

The other article I carry around is written by the then business editor of the Toronto Star, none other than Garth Turner. His views carried much weight back then and when he spoke about real estate, people listened. The article I carry that is written by him talks about the "horrifying experience" if you are looking for a place to live in the GTA. Prices are nearly averaging $200,000 and only one apartment in a thousand is vacant! We (Toronto) have the highest housing prices in the entire country. Mortgage rates were about 11.5% at the time and inflation was about the same! Wow have times changed, except that he also states, "We have also had the most spectacular gains in the price of real estate. There are, however, more increases to come, because as pricey as it is, housing is still essentially undervalued". Where have you heard this before? People in the GTA have been saying this same thing for the past 20 years that I've been in the business and will continue to say this for at least the next decade.

I believe that real estate will continue to be an excellent method of 'forced savings', it also gives you a firm footing to raise your family and will contintue to be an excellent long term investment anywhere in the GTA, North to Barrie, East to Newcastle, West to London and around the Golden Horseshoe to Niagara Falls.

The last 20 years in real estate has been great for me and my family. I am looking forward to more exciting times in real estate over the next 20 years and hope you can enjoy the ride along with me!

I want to thank all of my clients and friends that have supported me and used my services over the past 20 years and especially those people who 'believed in me' back in those early years.

I hope that this finds you and your family healthy and happy and I wish All the Best

Mark


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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.

Providing Full-Time Professional Real Estate Services since 1987

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Thursday, October 25, 2007

The Boomers are coming - watch as affordability crunch fuel highrise sales

Boomers, affordability crunch fuel highrise sales

Industry insiders never thought they would see the day when sales of highrise condo suites outstripped low-rise new home sales; but that day may be just around the corner.

According to RealNet Canada Inc., 49 per cent of total new home sales in the GTA through the first eight months of this year were highrise condo suites.

If the sales trends hold for the remainder of the year, with highrise sales running 25 per cent ahead of last year, compared to 5 per cent growth in low-rise sales, this will be the first – but probably not the last time – that builders will sell (and ultimately produce) more high- than low-rise homes.

It has been fascinating to watch the growth in highrise market share from 25 per cent of the market in the early 2000s, to one-third of the market by 2004, to more than 40 per cent in 2005. Last year, highrise sales spiked to 45 per cent of total sales and this year they appear to be heading north of 50 per cent.

What's happening, and can it continue?

I don't believe this dramatic market shift signals an equivalent shift in consumer preference. I maintain that consumer preference is gradually shifting as more and more retiring baby boomers enter the condo market. But the shift has been exaggerated as the affordability crunch drives more and more first-time buyers into condos, just to get a toehold in the market.

My view is confirmed by a recent report prepared by the Conference Board of Canada for Genworth Financial.

The report looked at condo markets in Canada's eight largest urban areas and asserts that rising prices for single-detached homes has bolstered demand for apartment condominiums, which are a relatively affordable ownership alternative.

"In most markets, condominium starts have risen in tandem with increases in average overall prices," the report states.

As for the longer term, the report states that "an aging population, particularly a growing number and population share of those 55 and over in all major urban areas, provides a solid demographic underpinning that is critical to the market's longer term health."

That's the gradual shift I mention above.

The Genworth view is corroborated by Jane Renwick, editor of Urbanation, which has been analyzing the GTA condo market for more than 25 years. Speaking to a recent meeting of our association's highrise forum, Renwick stressed that affordability attracts first-time buyers to the new condo market but that diverse buyer groups such as upsizing second-time buyers and downsizing baby boomers are beginning to add to the mix.

With respect to the boomers, Renwick notes that the "first wave" of them turned 60 in 2006 and that "there's more downsizing to come" for the next 17 years as the rest of the boomers reach their 60th birthday.

As an aside, Renwick revealed the key market trends in the highrise market, including a shift to tall buildings, master-planned communities, mixed-use communities and green condos incorporating features such as all-off switches, dual-flush toilets and water-saving faucets, EnergyStar appliances, motion-activated common area lighting, green roofs, car-share programs – all good stuff.

Getting back to the market trends, it's clear that the highrise lifestyle is becoming an active and positive lifestyle choice for the boomers, while first-time homebuyers are more or less backing into that market due to the high cost of low-rise homes.

As those first-time buyers begin to start families, I hope the market and our industry will be able to provide more affordable low-rise or mid-rise homes to serve them.

In the meantime, it's make way for the boomers! From Bob Finnigan Toronto Star

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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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Wednesday, October 24, 2007

CMHC's new snapshot of Canadian housing

CMHC's new snapshot of Canadian housing

Canada Mortgage and Housing Corp. (CMHC) recently released its annual state of the nation report on housing. The 2007 Canadian Housing Observer says building greener homes in higher-density neighbourhoods near public transit, rather than in sprawling suburbs, is key to reducing the housing sector's impact on the environment and lowering greenhouse gas emissions.

The 2007 Canadian Housing Observer analyzes the relationship between environment-friendly housing construction, neighbourhood design and transportation. It found that downtown living, which provides easy access to workplaces, schools, and shops, as well as housing located close to public transit, lead to reduced automobile use. Also, better design of the suburbs results in less short-distance driving and lower greenhouse gas emissions.

The 2007 Canadian Housing Observer also examines recent trends in affordable housing, housing finance and market developments. A key conclusion about the living conditions of Canadians, which is based on new CMHC information, found that the level of Canadians living in core housing need has declined slightly from 13.9 per cent in 2002 to 13.6 per cent in 2004. Core housing need is defined as "Households which occupy housing that falls below dwelling adequacy, suitability or affordability standards, and which spends 30 per cent or more of their before-tax income for the median rent of alternative local market housing that meets all three standards."

Other key findings of this year's Canadian Housing Observer include:
- Housing-related spending grew by 6.1 per cent in 2006, contributing more than $275 billion to the Canadian economy;
- Total mortgage credit outstanding in 2006 reached an annual average of $694 billion, up 10.7 per cent from 2005. This is mainly due to increased property values, which in turn increased the average mortgage amount approved;
- All of the fastest-growing metropolitan areas in recent years were in Alberta, Ontario and British Columbia, with the exceptions of Moncton, N.B. and Sherbrooke, Québec.
- Canada's population grew at a slightly faster pace in recent years than in the late 1990s mainly due to increased immigration. Senior, immigrant and Aboriginal groups are growing more rapidly than the general population. From 2001 to 2006, the vast majority (86 per cent) of population growth took place in metropolitan areas.
- The number of households in Canada owning second homes, vacation homes, or cottages reached 1.1 million in 2005, about 200,000 more than in 1999. From 1990 to 2004, high-income earners enjoyed much stronger income growth than those with low incomes. From 1999 to 2005, the average net worth of households in Canada, after adjusting for inflation, grew at an annual rate of more than four per cent. Increased equity in real estate played a major role in this increase.
- In 2006, the proportion of gross domestic product spent on housing increased to 19.1 per cent compared to 18.9 per cent the previous year.
- Total spending on housing renovations, repair and maintenance reached $43.9 billion in 2006, an increase of nine per
cent compared to 2005.
- From a record low of 5.99 per cent in 2005, mortgage rates rose to an average posted rate of 6.66 per cent for a five-year term mortgage in 2006. They were still low by historical standards. CMHC's 2006 Mortgage Consumer Survey found that the majority of mortgage consumers (84 per cent) were satisfied with the services they received when negotiating their current mortgage. About 70 per cent of mortgage consumers prefer to use one of the major lending institutions to obtain a mortgage.
- Urban households in British Columbia and Ontario continued to experience a high level of core housing need between 2002 and 2004. One-person households accounted for almost half (46.7 per cent) of Canadian urban households in core housing need, up from 43.7 per cent in 2002. The incidence of core housing need among senior-led urban households declined from 15.4 per cent in 2002 to 13.9 per cent in 2004. The percentage of immigrant urban tenant households in core housing need increased to 36.3 per cent in 2004 from 34.4 per cent in 2002.
- The 20 per cent of households having the lowest incomes accounted for about 81 per cent of all urban households in core housing need in 2004, up from about 78 per cent in 2002. Courtesy of R.Paul Chadwick TD/CT

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Monday, October 22, 2007

Housing Market Trends and information for buyers and sellers



This particular page will give you information about Toronto Housing Market Trends

Many reports still show Canada as a Hot Destination for Immigrants Canada's population grew last year. The increase was due to continued immigration who choose this country as home home.

Almost all regions of the country saw growth.
Canadian Mortgage Debt: Canada Homebuyers Continue get into more debt

Read more about Price Trends

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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

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Sunday, October 21, 2007

REB's Forecast and Provincial Outlook

PROVINCIAL OUTLOOK

October 2007

Regional variations on the Canadian economic

advantage

Canada's economy is so far marching to the beat of its own drummer, but there are sharp regional variations on this economic advantage. As a result, we

have lowered our growth forecasts for the Ontario and Quebec economies and have become more bullish on near-term prospects in parts of western Canada.

First are the sharp regional differences in terms of dependencies on manufacturing and primary sector activities. The benefits from the positive swing in Canada's overall terms of trade are concentrated on the resource provinces. In contrast, high commodity input prices and the surging loonie are accentuating Ontario's and Quebec's greater downside sensitivity to the U.S. economy.

Second, Canadian job markets remain stronger than in the United States, but the effects are spread unevenly. Alberta, New Brunswick and British Columbia have the strongest job gains, which are translating into above-average consumer spending spin-offs for these provinces.

Third are the significant regional variations in housing market performance. On net, mortgage credit conditions have eased substantially in Canada despite modestly higher mortgage rates in recent months and a deterioration in the tiny sub-prime segment. Mortgage securitization is relatively unaffected in Canada because 85% of it is guaranteed by the federal government. The reason for the net easing in mortgage credit conditions is due to the arrival of long-amortization mortgage products, which now dominate mortgage purchase applications in the insured segment and comprise about one-quarter of total mortgage purchase applications in Canada. The effect of going for longer amortization is significant enough to extend Canada's housing cycle by about a couple of years by transferring future activity to the present. The highest take-up rates on longamortization products are in British Columbia and Alberta.

Fourth, Canadian fiscal policy is far better off than much of the rest of the world in terms of relatively low net debt levels compared to the size of the economy and federal surpluses. Surpluses or balanced budgets across the provinces add to this picture, but surpluses can mask underlying problems.

There is little doubt in our minds that Ontario's fiscal policy is exacerbating its competitiveness woes by transferring future growth to the present through a rapid rise in program spending and is partly financing this via the world's second highest business tax burden on new investments. The federal government's accelerated equipment write-offs are a partial offset.

Fifth, we expect a capital spending surge in Canada commencing by decade's end. The biggest effects will be felt in Alberta, Saskatchewan, Newfoundland and New Brunswick. Proportionately smaller influences will be felt in Ontario, Quebec and Nova Scotia. British Columbia lacks megaprojects to fill the void after the Vancouver 2010 Olympic and Paralympic Winter Games and, barring major hydroelectricity investments, Manitoba will also miss out along with Prince Edward Island. From RBC Economics

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

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Saturday, October 20, 2007

REB Comments on Ontario - Forecast lowered; competitiveness waning

Ontario Forecast lowered; competitiveness waning

We have shaved our 2008 growth forecast down significantly, but expect that growth will rebound modestly in 2009 as the U.S. economy accelerates, currency relief materializes, major capital spending by the provincial government kicks in and new auto sector investments swing into production. Renewed upward pressures on the currency, ongoing strength in oil and other commodity inputs, weaker U.S. growth and the surge in China's exports as a share of U.S. imports all mean that central Canada's manufacturers will face another challenging year.

Also, forestry, Ontario's second biggest sector, faces at least another year of weak commodity prices and escalating costs.

While 2009 may bring modestly stronger growth, our chief concern is for the economy's long-run competitiveness under the crushing corporate tax burden that acts as a sharp disincentive to invest. If the province were a country, then, when properly measured, it would have the second highest tax burden on new business investment in the world. Much of this goes to funding very rapid growth in short-term government program spending, with health accounting for about one-half. Ontario has had the second fastest growth rate on program spending behind Alberta in recent years, but in a relatively soft economy and without the Alberta government's resource royalties backing this spending.

Addressing this high tax burden would be a significant offset to the currency pressures on the province's businesses. In fact, much of the incentive to invest as a result of the 60% currency-induced cheapening in imported capital goods gets yanked right back by extraordinarily high rates of taxation. From RBC Economics

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A. Mark Argentino
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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

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Wednesday, October 17, 2007

Slow and steady growth forecast for residential real estate in major Canadian markets in 2008, says RE/MAX

Slow and steady growth forecast for residential real estate in major Canadian markets in 2008, says RE/MAX

Mississauga, ON (October 17, 2007) - After posting extraordinary gains in 2007, housing market performance will moderate in most major Canadian centres in 2008, according to a report released today by RE/MAX.

The RE/MAX Housing Market Outlook 2008 examined residential real estate trends in 18 markets across the country. The report found that while economic prospects will continue to improve next year, few major markets are expected to exceed record sales levels set in 2007. Winnipeg, Hamilton-Burlington, Kitchener-Waterloo, London-St. Thomas, Ottawa, Sudbury, Saint John, Halifax-Dartmouth, and St. John's are all predicted to buck the trend in 2008, with appreciation ranging from one to seven per cent. Average price is forecast to increase in 78 per cent of markets surveyed next year, with the lowest price increase expected in Edmonton and the highest in St. John's.

"Western markets were first out of the gate in 2007, but those in the East followed suit," says Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. "By year- end, some of the most impressive gains in home sales will be realized in Ontario and Atlantic Canada. Solid economic fundamentals, including billions of dollars in capital projects, a positive unemployment outlook, and solid consumer confidence levels will propel markets forward. A slow and steady growth trajectory, minus the peaks and valleys experienced in 2007, is forecast for next year."

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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

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Friday, October 12, 2007

TRUMP TOWER - Trump fired up about Toronto tower

Trump fired up about Toronto tower

The Donald flew into Toronto in his private jet today to break ground on the 57-storey Trump International Hotel & Tower.

"This will be one of the great buildings in the world," New York developer Donald Trump told a small tented audience on the Bay St. site of the proposed skyscraper at the intersection of Bay and Adelaide Sts. in the city's financial district.

This artist's rendering shows the Trump International Hotel & Tower at Bay and Adelaide Sts. in Toronto, in between the Scotiabank and Bank of Montreal buildings.

Outside the sites, onlookers lined Bay St. with cameras hoping to catch a glimpse of the star of television's The Apprentice.

"When we come back here in two years, everyone in Toronto will be very proud."

Trump said more than $300 million in units had already been sold. The long-awaited building the developer's first in Canada will have 118 residences and 261 hotel suites.

There has also been deep skepticism among some in the real estate community that it would ever be built, since it has taken three years to break ground in a hot condominium market.

"We wanted to take our time to do this right. Even with a great location like this, if you don't build the right product, it won't work," said Trump.

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RE/MAX

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Thursday, October 11, 2007

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

TORONTO HOUSING STARTS INCREASE STRONGLY IN SEPTEMBER

TORONTO, OCTOBER 9,2007 – Canada Mortgage and Housing Corporation

(CMHC) has released preliminary housing starts data for September 2007. The seasonally-adjusted annual rate (SAAR) of starts increased strongly to 41,800 in September from 32,300 in August. A robust annual rate of multiplefamily starts, especially for condominium apartments, drove this increase.

While condominium apartment starts were much stronger last month compared to September 2006, it should be noted that on an unadjusted basis through the first three quarters of the year starts of this housing type declined by 38 per cent compared to the first nine months of last year. The decline in new condominium apartment construction caused the total number of starts to dip by 12 per cent this year. Single-detached, semidetached and row (town) house starts were up 5.5 per cent compared to last year.

"Demand for new ownership housing has been very strong over the past year, due to seller's market conditions in the resale market driven by favourable local economic conditions and low borrowing costs," according to Jason Mercer, Senior Market Analyst at CMHC. "Demand for condominium apartments in the Toronto area has been especially strong. Record pre-construction condominium apartment sales experienced over the past two years have started to convert into increased starts. This trend is expected to continue in the last quarter of this year and through 2008."

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

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Wednesday, October 03, 2007

TD Canada Trust predictions for remainder of year

TD Canada Trust predictions for remainder of year



HIGHLIGHTS


  • Canadian economy records steady growth

  • Cross-currents will continue to blow across Canada's major industries

  • Inflation monster continues to lurk in the background



This morning's release of Canadian gross domestic product (GDP) for July – while falling in on the soft side of market expectations – revealed that the economy continued to churn out steady gains early in the third quarter. The 0.2% month-to-month increase recorded in the month leaves the economy on track to record a respectable rate of growth of 2.5-3% in the third quarter, which is only modestly slower than the 3.5% average outturn clocked in the first half of the year. As has been the case in recent months, the service sector remained the tower of strength, forging ahead by 0.3% on a month-to-month basis in July and counter-balancing another soft performance on the goods side (-0.1%). Since monthly data are notoriously volatile, we've provided a snapshot of year-over-year changes across the sub-industries As can be seen, the service areas have reigned supreme, while Canada's export-oriented manufacturing sector has struggled.



The headwinds will increase



While the weaker-than-expected GDP result pushed down Canadian bond yields and took some steam out of the overnight rally in the Canadian dollar – which had pushed the loonie to 1.007 U.S. cents – investors are more concerned with what may lie ahead. For one, neither the GDP data for July nor August's stronger-than-expected Canadian employment report factor in the fallout from the recent financial turmoil that spread across the globe. Certainly, credit conditions have improved since the height of the mid-August turmoil, with interest-rate spreads on riskier assets easing from their highs. Still, international credit markets have not returned back to normal, as evidenced yesterday when both the Bank of Canada and the ECB moved once again to inject liquidity into their respective overnight market in order to ease the upward pressure on lending rates. In Canada, participants of the Montreal proposal that aims to resolve the third-party asset backed commercial paper (ABCP) crisis announced this week that they will need more time to find a solution to the issue.



Perhaps more importantly, the prospects of the U.S. economy have steadily dimmed since the summer. This week's reported 4%/8% drop in new/existing home sales and further deterioration in prices point to a housing market retrenchment that still has at least a year to run. Investors were served up some better news this morning, with the reported 0.6% gain in U.S. personal spending, which topped forecasts. Yet the spotlight quickly turned to the weaker-than-expected 0.3% gain in personal income that put downward pressure on the saving rate.



Given that 70% of U.S. GDP is tied to the consumer, so much of the near-term outlook Stateside rests on the performance of the job market, and in turn, the level of business confidence. We remain optimistic that the business sector will keep its head above water in the months ahead, supported by still-healthy balance sheets and cash positions. This week's report on durable goods for August highlighted the fact that while non-defense capital spending has slowed over the past few months, it remains at a respectable level. Certainly, next week's U.S. non-farm payrolls report for September will provide precious insights. Our bet is that employment growth resumed in the month, but by only 75,000 jobs. This pace is consistent with our outlook for lethargic quarterly real GDP growth of 1.5-2% in the near term.



Cross-currents in Canada's economy



The chillier headwinds from tighter credit market conditions and softness in the U.S. economy will not be lost on Canada's economy. Little reprieve can be expected in manufacturing, which has seen its cost edge evaporate from the surge in the Canadian dollar. In some areas – notably autos – U.S. producers appear to be moving to shore up profitability, exacerbating the manufacturing challenge for Canada. That said, other industries will continue to enjoy solid conditions. Consumer-driven industries, such as wholesale and retail trade, will continue expand at a decent rate, supported by a 33+ year low unemployment rate. These two industries also top the list of Canadian sectors actually benefiting from a soaring loonie. Housing markets may have started to cool in Alberta, but ongoing strength nation-wide should continue to provide enormous spill-over benefits across the gamut of goods and services industries. Although resource companies are confronting rising costs and a higher loonie, ongoing rapid expansion in China will continue to provide a solid underpinning on prices for oil and metals. Above all, this week's announced $14 billion federal budget surplus for fiscal 2006-07 served up a reminder that government coffers in Canada are the envy of the G-7, providing wiggle room to initiate tax cuts and other measures to help offset some of the challenges on the competitiveness front.



Netting out these offsetting headwinds and tailwinds, we project economic growth in Canada to run at a rate of about 2% over the next year. This moderate pace will continue to fuel debate about the Bank of Canada's likely next move. In a speech this week, Bank of Canada Governor Dodge indicated that the current rate setting was appropriate in view of the downside risks to growth and inflation emanating from the U.S. and the upside risks from booming housing activity.



As we discuss in the latest monthly edition of TD Global Markets, released yesterday, it is the inflation risk that is likely to win out, prompting the Bank of Canada to raise rates by 25 basis points in December after the Fed delivers one final rate cut at its October confab. Given that financial markets are pricing in more significant easing in the U.S. and are still betting on a modest easing in Canada, we are projecting a backup in yields on both sides of the border by 30-40 basis points by year-end. Lastly, the Canadian dollar will end the year at parity before falling back to about 95 U.S. cents in 2008. Article courtesy of R.Paul Chadwick from TD Canada Trust




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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
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Tuesday, October 02, 2007

RBC's comments on Provincial Current Trends

PROVINCIAL CURRENT TRENDS

September 2007

Western provinces powering Canada's jobs bonanza

August's employment report showed that overall job gains for the first eight months

of the year were up an estimated 232,000. The unemployment rate held at its lowest

level since 1974 and wage growth continued to firm. The average hourly wage rate

for permanent workers was up 3.8% year-over-year in August, marking the fastest

pace of increase in a year and the fifth consecutive month of solid gains.

Tight labour markets provide yet another piece of evidence that Canada's domestic

economy is still on firm footing despite some weakness in job markets now evident

in the United States (chart 1). Healthy job growth, an historically low unemployment

rate and the recent acceleration in wage growth highlights the fact that Canada's

economy is operating above its capacity limits.

The strength in Canada's headline national number is largely the result of the ongoing

strength in western job markets. Alberta, British Columbia and Saskatchewan —

in that order — are the clear leaders on the labour market front (chart 2), clocking in

the strongest pace of job gains, the lowest unemployment rates and the fastestgrowing

labour forces.

There is also notable strength coming from Quebec's labour market, which has

added 71,000 jobs since the start of the year. Ontario's job growth is slowing relative

to the national average and its unemployment rate has edged up from last year's 6%

low but, overall, still remains healthy. Job conditions are mixed in Atlantic Canada.

Prince Edward Island and Newfoundland are tracking decent job growth. Nova

Scotia's job growth has recently slowed down, while New Brunswick started 2007 on

a slow note, but its job growth has recently started to pick up.

British Columbia —Labour markets in the province are still tight,

with the year-over-year pace of job growth setting a healthy 3.2% pace

and the unemployment rate holding just above 4%. Wage growth

slowed down earlier in the year but has recently firmed, with two consecutive

months of decent gains. The province accounted for roughly 20% of

Canada's total job gains reported in the first eight months of the year. Jobs were split

roughly equally between the goods sector and the service sector. The construction,

finance, insurance, real estate, and leasing sectors have been the biggest contributors

to provincial employment so far in 2007.

Alberta —The province still leads all provinces in all key job market

indicators, including job gains, unemployment rate, labour force growth

and wage gains. Hourly wages in Alberta are running at a healthy clip

but are down from last year's 7% pace and are now tracking at about

5.3% so far in 2007 — a pace that continues to significantly skew the national rate.

Alberta's labour force continues to expand to accommodate the growing demand for

workers. Net interprovincial migration, although down from last year's third-quarter

peak at 24,535 migrants, is still the strongest in the country and continues to

attract workers from right across Canada. Despite accounting for only 13% of

national GDP, the province has been the single biggest contributor to job gains

this year, with 96,000 jobs created in the first eight months of the year compared

to the same period last year.

Saskatchewan — Job markets picked up momentum in the latter

part of 2006 and early in 2007, but have since started to cool off.

The provincial unemployment rate is still one of the lowest in the

country but has been trending upward in the last six months. The

unemployment rate bottomed out in March at 3.8% but has since climbed just

over a full percent to reach 4.9% in August. Wages, however, are still growing

at a healthy clip. The recent softness showing up in job markets is coming from

the service sector, while the goods sector has actually picked up momentum. In

fact, the construction sector was the only major contributor to job gains in

August, adding roughly 3,800 jobs. Housing shortages are fuelling this recent

surge in construction employment.

Manitoba —The pace of annual job growth in Manitoba has been

holding just above 1% so far this year and unemployment is tracking

at 4.5%. Hourly wages in Manitoba have accelerated for the

last five consecutive months and ran at a 5% pace in the first eight

months of the year compared to a year ago. With inflation at 2.2%, this has left

room for solid real wage gains to be realized in the province. Job growth so far

this year has been largely concentrated in the construction sector and some

service sector industries, including finance, insurance, real estate, education

services, and public administration.

Ontario —Job markets in Ontario are lagging the national average

but still remain in healthy territory. The goods sector is still in

decline as the agriculture, forestry and manufacturing sectors continue

to shed jobs. Service-sector strength, however, still trumps

the losses in the goods sector. Wage growth decelerated substantially in the

early part of 2007 but has since picked up in the last four months. But, wages are

still dragging on the national average, with Ontario and Quebec being the only

two provinces where wage growth is below the national rate. With inflation

running at a mild 1.6% this year, real wage gains are still being realized but only

by a slim margin.

Quebec — Job growth picked up in the early part of 2007 and the

unemployment rate dropped from 8% last year to a record low of

6.9% in July. The gains so far this year have been concentrated in

the service sector. The tightness evident in Quebec's labour market,

however, has not flowed into wage growth. Like Ontario, wages are growing

at a pace below the national average. Average hourly earnings were up 2%

in the first eight months of the year compared to the same period a year ago,

while the national pace is a full percentage point higher at 3%.

New Brunswick — After a slow start in the first quarter of 2007,

the province's labour markets picked up, reaching a healthy 3.7%

year-over-year pace in August. Its unemployment rate has also

been trending down. Wage growth has speeded up substantially

in the last few months and New Brunswick has the third fastest pace among

Source: Statistics Canada, Canada Mortgage and Housing Corporation, Canadian Real Estate Association, RBC Economics Research

Provincial current economic indicators

Latest month available, year-over-year % change, not seasonally adjusted unless marked S.A.

the provinces this year. The goods sector has led the gains, with

the utilities, construction and manufacturing sectors accounting

for 90% of the job growth in the sector in the first eight months of

the year. The service sector has shed roughly 3,000 jobs during

this period.

Nova Scotia —Labour markets in the province are

tighter than they were last year when it experienced

an outright contraction in jobs. However, this year

there have been consecutive monthly declines in

overall employment since April. The unemployment rate has risen

a full percentage point, reaching 8.9% in August. Wages, however,

are still running at a healthy clip. Employment in the goods sector

has been mixed. Forestry sector employment remains in decline,

while manufacturing employment appears to have stabilized. The

service sector contributed 70% of the job growth in the first eight

months of the year compared to a year ago, but has recently softened

as trade sector employment has weakened.

Prince Edward Island — The support in the Island's

job market so far this year has emanated chiefly

from the service sector. A broad range of industries contributed to

this gain, including finance, insura